CONTENTSABOUT THIS REPORT This document is the Sustainability Report by Secil for the 2016-2017 biennium. The Report was drawn up based on the Global Reporting Initiative (GRI) Guidelines

00Message from the Chief Executive Officer 04

01Main numbers and events of the biennium 06 02About this report 08

03The Secil business 10 03.01_ The group and businesses 10 03.02_ Economic performance 12 03.03_ The products 14 03.04_ Product quality and customer satisfaction 16 03.05_ Innovation 20

CONTENTS

04Secil and sustainability 22 04.01_ What guides us 22 04.02_ Sustainability management 26 04.03_ The cement manufacturing process within the value chain 28 04.04_ Challenges of a circular economy 30

05The people at Secil 32 05.01_Hygiene, health and safety 32 05.02_Personal development 41 05.03_Diversity and inclusion 43 05.04_Internal communication 44

06Secil and the Environment 46 06.01_Climate change and energy 46 06.02_Emissions 50 06.03_Water 51 06.04_Biodiversity 52

07Secil and the Community 56 07.01_Environmental awareness initiatives 56 07.02_Initiatives involving the local community 57 07.03_Secil Awards 62 07.04_Partnerships 62

00MESSAGE FROM THE CHIEFEXECUTIVE OFFICER

A LONG AND ENTHUSING PATH

For several years Secil has been committed toresponding to the challenges of Sustainability,making its industrial activity compatible withenvironmental protection and effective socialresponsibility.

Examples include its pioneering role in thecoprocessing of alternative fuels, in developinginnovative applications for concrete, in itssystematic relationship with stakeholders through the Environmental Monitoring Committees in its Factories and, since 1999, the publication of Sustainability Reports.

This Report also seeks to meet the requirements of Decree-Law 89/2017 of 28 July, which transposes European Union legislation into the Portuguese legal system, although the company is not legally obliged to do so. We are proud to have voluntarily anticipated this practice for almost 20 years by communicating transparently with our stakeholders and reporting progress recorded in our economic, environmental and social performance, which wewill continue to do on a regular basis every twoyears.

Chairman’s message 5

Sustainability is a constant critique in Secil’s performance and is incorporated at various management levels. We know our impacts and we act proactively, both in minimizing their negative effects as well as in optimizing their positive effects. We have adopted the best practices and we regularly report on the results achieved, anticipating constraints and trends that reflect on our performance.

Secil is an active member of the CSI - Cement Sustainable Initiative of the WBCSD, of the European Cement Association- Cembureau and several other organizations aimed at promoting business sustainability and innovation, for which it has repeatedly contributed with the example of its best practices.

If we have a past that speaks for us, the path ahead is very challenging due to the demands placed on us and we will know how to correspond to what is expected of a responsible company of our size: our commitment to Sustainability is strong, broad and permanent as we will indicate in the following pages of this document.

Otmar HübscherChief Executive Officer

01MAIN NUMBERS AND EVENTS OF THE BIENNIUM

MAIN EVENTS OF 2016

Acquisition of a company based in the Netherlands, the maritime terminal of which has enabled the direct export of cement from the quay of the Secil factory in Outão.

Acquisition of the entire capital of Secil Prebetão, fully consolidating its accounts.

Cement sales in Brazil surpassed one million tonnes.

Opening of eight cement distribution centres in Brazil, enabling the existing distribution network in the country to be improved and increased.

Acquisition of two concrete plants in Brazil, with the objective of expanding cement sales channels.

Completion of the installation of the sleeve filter on line 2 of the Lebanon plant, providing a substantial reduction in air pollution emissions.

Key Events 7

Acquisition of a group of operations based in Spain, which includes a terminal enabling the exporting of cement from Portugal, as well as 13 concrete plants and the working of quarrying.

Introduction of new cement packaging in Portugal, with changes in the graphic design and communication of the brand: "Cement now has a name."

Launch of the Return transformation pro-gramme with a view to increasing the profi-tability of the Secil Group, by setting targets up to 2020.

Start of the exporting of clinker in Tunisia from Gabès.

Increase of quarry reserves in Adrianópolis.

Consolidation of the operations in the Netherlands, acquired in 2016, with the in-crease in sales at the Terneuzen Terminal.

Start of the utilization/recovery of olive stones as an alternative source of fuel in the kilns at Gabès.

TURNOVER

CEMENT AND CLINKER PRODUCTION

Nº EMPLOYEES

OCCUPATIONAL ACCIDENTS (FREQUENCY RATE)

CO2 EMISSIONS

471,530 thousand €

5,491 million t

2,619

9,2

3,788,166 t

THE NUMBERS IN 2016

MAIN EVENTS OF 2017

TURNOVER

CEMENT AND CLINKER PRODUCTION

Nº EMPLOYEES

OCCUPATIONAL ACCIDENTS (FREQUENCY RATE)

CO2 EMISSIONS

499,527 thousand €

5,850 million t

2,556

4,8

4,051,204 t

THE NUMBERS IN 2017

02ABOUT THIS REPORT

This document is the Sustainability Report by Secil for the 2016-2017 biennium. The Report was drawn up based on the Global Reporting Initiative (GRI) Guidelines for the 'in accordance' - Core option. The indicators given have been consolidated and result from the activity of the company in Portugal, as well as in Angola, Brazil, Cape Verde, Spain, the Netherlands, Lebanon and Tunisia. For a more detailed analysis of the indicators by geographical area, the GRI Table at the end of this document should be consulted.

Seeking to respond to the interests and expectations of its stakeholders, the document addresses the most important sustainability topics at Secil through the following chapters: The People at Secil, Secil and the Environment, and Secil and the Community. It should also be mentioned that Secil started a broad survey of its stakeholders in 2017, which should enable the company to have a more up-to-date and comprehensive view of their interests and expectations, thus adjusting their management and reporting of sustainability.

This document is available on SECIL's website at http://www.secil-group.com/centro-de--documentacao.

Should you require any clarification, please contact: Nuno Maia SilvaCommunication and [email protected]

About this Report 9

03THE SECIL BUSINESS

The cement industry, in addition to its financial importance in Europe, has a great impact on the national and regional economy. The Secil Group has continued to invest in the enlargement and consolidation of its ope-rations. Secil’s Businesses are focused on economic performance taking into account the environmental and social impact from the production and utilization of its products, which are so important for the satisfaction of its customers. Innovation is one of the key elements for creating alter-natives that contribute to sustainable development.

03.01 THE GROUP AND BUSINESSES

Secil has a strong presence in the cement industrial sector, and is a business group with various operations in Portugal and in eight countries in four continents of the world. Although the main core of its activities is cement, expansion to other businesses and integration of various companies with com-plimentary services has meant that, nowa-days, the Secil Group has a solid position both in domestic and external markets.

IN PORTUGAL

The main activity of Secil in Portugal is the production of cement and the development of applications for this product of excellence, which is, currently, the main construction material used by human beings and which is essential to any work, from the simplest to the most grandiose and complex. In Portugal, Secil also produces concrete, mortars, gravels and prefabrications in concrete.Secil concrete is a company which was started in the Portuguese city of Setúbal with share capital made up entirely of Portuguese capital and it is predominantly an exporting entity, with 60% of its production being shipped abroad.

03.01 03.0203.0303.04

03.05

The group and businessesEconomic performanceProductsProduct quality and customer satisfactionInnovation

The Secil Business 11

Cement

PORTUGALSecil Group

Mortars

Precast

Concrete

Aggregates

SetúbalMaceiraPataiasPoço do BispoSanto AndréEstremozViana do Castelo - seaViana do Castelo - landBragaMangualdeLeixões - landLinhoTrofaTorres VedrasPenafielFundãoSarnadasVila da FeiraVila RealPortimãoLeixões - seaV. R. Sto. António

V. CasteloBragaGuimarãesCarriçaV. N. GaiaS. M. FeiraAlbergariaVila RealAmarantePenafielGuardaTondelaCoimbraPombalC. BrancoLeiriaAbrantesC. RainhaSantarémT VedrasPortalegreLinhóV. F. XiraFrielasQueluzAlcocheteC. MarcoSetúbalElvasV. NovasÉvoraAlcácer do SalSinesBejaPortimãoLagoaFerreiraOlhão

MaceiraPataiasMontijoLouléRio Maior

ArgibetãoBragaCartaxo

PrebetãoAlfazerãoOlhãoSetúbalCoimbraCastelo BrancoMontijo

FamalicãoPenafielAtouguiaAlenquer (Vale Grande and Covada Égua)Sesimbra (Valedo Covão andMata Redonda)AlbufeiraPortimãoLouléParragil

Precast

The Secil Business12

From Setúbal, it exports almost 1 million and 500 thousand tonnes of cement and clinker by sea to more than 20 countries, thus contributing to the national effort to improve the trade balance with the outside world.

The private Secil Outão quay is thus fundamentally important in the flow of the product, enabling not only the supply of the various national maritime warehouses, but also being an essential part of exporting to North America, the Caribbean, Central and South America, the West Coast and the North of Africa.

Over the last few years, the export side of the Outão Plant has become increasingly important, and it nowadays represents around 93% of Secil's total export volume in Portugal.

In addition to the significant impact on the region, through the hiring of countless companies in the Peninsula of Setúbal carrying out port work, transport, security and various related services, in 2017 the Outão Plant represented around 22% of the cargo volume in the Port of Setúbal.

IN THE WORLD

Secil has facilities in Angola, Brazil, Cape Verde, Spain, the Netherlands, Lebanon and Tunisia.

Of all the plants Secil has abroad, the only one currently exporting its product is the Tunisian unit, with approximately 300,000 tonnes to be shipped to Algeria and Libya in 2016 and 200,000 tonnes of clinker by sea in 2017.

03.02 ECONOMIC PERFORMANCE

In the 2016-17 biennium, the Secil Group continued to invest in the enlargement and consolidation of its operations in a number of countries. The year 2016 was the first in which the new Brazil plant was fully operational and a terminal was acquired in the Netherlands to enable the direct exporting of cement from Portugal. In 2017, a group of operations was acquired in Spain, which has enabled the exporting of cement from Portugal. In Brazil, the Supremo operation continued to develop positively.

The year 2017 was marked by the improved profitability of operations in Portugal. Although there was a reduction in the external market, the recovery of the domestic market and the growth of the construction market supported a significant improvement in the contribution of the Portuguese operation to the Group's overall result.


INTERNATIONALPRESENCESecil Group

PORTUGAL- Cement- Ready-mixed Concrete- Aggregates- Mortars- Prefabricated Concrete- Industrial recovery of waste

CAPE VERDE- Cement distribution- Aggregates- PrefabricatedConcrete

BRAZIL- Cement- Ready-mixed Concrete

TUNISIA- Cement- Ready-mixed Concrete- Artificial Lime- Prefabricated Concrete

LEBANON- Cement- Ready-mixed Concrete- Prefabricated Concrete

ANGOLA- Cement

SPAIN- Cement- Aggregates- Concrete

THE NETHERLANDS- Cement


RETURN PROGRAMMEThis was launched in 2017 and it is a trans-formation programme running throughout the Group.

WHAT IS IT?This programme has three areas of operation: increasing revenues, efficient management of costs and processes and redefinition of the management model, based on PEOPLE and SAFETY.

OBJECTIVES:Increase the profitability of the Secil Group, with priority focus on improving results through growth in the current operations, having defined a set of objectives until 2020. Initiatives have been identified aiming at im-proving overall performance and a significant and sustainable growth in operating results, both in each of the geographical areas where Secil operates, and throughout the Group.

OUR PERFORMANCE – GRI INDICATORS

Turnover

03.03 THE PRODUCTS

The Secil Group aims to provide high quality solutions and services in the area of cement and building materials (concrete, aggregates, mortars and prefabricated materials), combining economic profitability with exemplary social and environmental behaviour.

GRI 201-1Turnover (€ thousand)

EBITDA(€ thousand)

2015

2016

2017

2015

2016

2017

478,672

471,530

499,527

87,061

84,957

89,002

People: Develop leadership competencies and change

managment

Safetyculture

Costs/Cash

RETURN

RevenueGrowth

Managementmodel


In order to guarantee an improvement in the working conditions of its employees and the environmental performance of its com-panies, the development of new cement pro-ducts, and the make up of cements and fuels, Secil relies on the support of its laboratories, making its services available to third-parties.

TYPES OF CEMENT AND LIME

Secil produces a wide range of grades of grey and white cements with applications ranging from small constructions to major civil engineering works. Secil cements are certified (EN 197-1) and subject to rigorous and permanent quality control, from the production phase until their placement on the market. By adopting the best practices and technologies available in the market, the company guarantees a high standard of quality in all its actions.

In addition to cement, Secil also markets hydraulic lime, a binder with wide-ranging use, especially in the manufacture of mortars, soil treatment, soil-lime or bituminous filler. The company also produces natural hydraulic lime, a result of a research and development process from within the Secil Group, which is compatible with old supports, but with a behaviour which meets today’s strict requirements.

CONCRETE

Cement has many uses. The best known is the production of ready-mixed concrete for civil engineering structures or grey, white or coloured architectural concrete. This material, consisting of water, cement and aggregates, is essential for the seismic reinforcement of building foundations and structures.

AGGREGATES

Industrial aggregates are raw materials for the construction of other materials. Their choice strongly influences the quality and behaviour of the final products. In the case of architectural concretes, aggregates also have a visual impact that can be very impor-tant. Secil Britas extracts and sells limestone and granite aggregates, certified for various construction uses.

MORTARS

In the area of prefabricated products and building materials, Secil also produces pre-prepared dry mortars. The mixture of cement, lime, sand and other additives is used to lay materials and to waterproof, regularize and finish surfaces (plasters, wall coverings, light fillings, thermal insulation and hydraulic lime), both for new works, and when renovating and refurbishing existing buildings.

PREFABRICATED

Prefabricated concrete products is another area offered by the Secil Group. Structures, beams, pavement blocks, street furniture, tiles and wood-cement panels, are some of the products created and marketed by the various companies working in the sector in question.

The products manufactured and marketed by Secil Prebetão are grouped into the categories Premolde (structures, alveolar slabs, slabs for beams and vaults and alveolar panels); Gomase (pipes and shackles, manholes, gutters, channels and sinks, safety barriers) and Unicon (pavements and kerbs, street furniture). As for Argibetão, the main items are high quality tiles (resistant to ice and saltpetre), split blocks, windows and solar panels.


CASA DAS HISTÓRIAS PAULA REGO, 2010 Architecture Award, Souto Moura Architect

Example of use of a concrete incorporating special pigments, which offer colours with di-fferent shades. Red pigment contrasting with forest green.

Paula Rego's wish was to combine functional museum requirements with a warm welcome to visitors.

03.04 PRODUCT QUALITY AND CUSTOMER SATISFACTION

Sustainability is a responsibility and an opportunity. The development of new products and services is driven by our commitment to sustainability and customer needs.



WHAT IS BEING DONE IN PORTUGAL

QUALITY PERCEPTION SURVEYIn order to improve its relationship with customers, Secil conducts a Quality Perception Survey in Portugal every 3/5 years.

OBJECTIVES:1. Evaluate the level of existing satisfaction with the Secil offer.

2. Evaluate Customers' perception of various aspects and their relative perception of Secil's competition.

3. Compare and/or verify lack of satisfaction with aspects over time.

Results:In 2015 it was 8.4 (on a scale of 1 to 10).

Biomedical sensing in concrete with a direct measurement and monito-ring, control and data transmission system via mobile phone.

BVP sensor; cardiac curve outline and pulse rate measurement.

EDA sensor; assessment of cognitive status.

Electrochromism in concrete

Interactivity by electric impulse.

TECHNOLOGIES RECENTLY DEVELOPED IN SECIL PRODUCTS

Mobilizer - IN-Invisible Network; Interactive Concrete Surfaces


Sensors in concrete

Pedestrian safety indicator system.

Vehicle detection in a concrete part built into the pavement.

Pixelized pedestrian crossing panel with

safety warning.

Interactive garden game.

Upon touch it senses presence and illu-minates the part indicating this.

WHAT IS BEING DONE IN THE REST OF THE WORLD...

BRAZILProduct quality and customerrelationship

In order to guarantee the sustai-nability of the cement business, the following activities are being developed:

Product Quality ChartSpecification of customer requirements in addition to mandatory requirements per standard;

Cement ReportsMonthly submission of reports guaranteeing product quality for customers;

Quality CommitteeBimonthly meetings dealing with matters related to customer service, correction of product deviations, developing markets and customer needs. Participants: Quality, production, logistics and commercialisation control.

Competition AnalysisSystematic analysis of the competition, evaluating Supremo products against the main actors in the market. These studies evaluate both performance through cement tests and cement applicwations in concre-te. Analysis of 3 annual cycles of competing products are carried out.

Project NewtonStrengthening of technical assistance servi-ces, with visits focused on the development and improvement of client business, as well as improvements in the process.


Secil believes that business excellence and customer satisfaction begin with product differentiation. With its vast experience, the company intends to continue to lead the market through innovation within its sector.

The company has an ambitious concept of innovation and is working on a series of significant product developments with a focus on sustainable construction.

We know that one-third of global emissions of greenhouse gases come from buildings during their life cycle, so we offer products that improve their energy efficiency.

The recycling of building and infrastructure demolition waste is a way of reducing the use of new aggregates, lowering environmental costs arising from operation and transportation and the amount of waste to dispose of in landfills.

Within a circular economy logic, Secil also uses by-products from other industries, such as cork, to manufacture mortars and lightweight con-crete with cork, for example. It also develops a number of other coating and thermal insulation products which improve the energy efficiency of buildings.


On average, Secil invests about 3.5% of its turnover on Innovation.

It has 12 patent registrations in Portugal.

There are around 10 R&D projects in the field of new building materials and energy.

In 2017, Secil won the Award for Innovation in Construction with its UniTaipa Concrete product.

03.05 INNOVATION

INNOVATION IN SECIL IS:1. Anticipate the needs of the future and seizing opportunities.

2. Develop know-how in all the aspects needed to innovate.

3. Create value through curiosity, ambition, initiative and differentiation, giving shape to ideas.


04SECIL AND SUSTAINABILITY

Secil works with sustainable processes, assuming its commitment to the highest standards of Sustainability and Social Responsibility.

Conscious that its growth is directly related to the sustainability of its operations, Secil has made significant investments in the innovation of its production processes and products, in the training of excellence for its human capital and in its connection with the communities which surround it.

04.01 WHAT GUIDES US

Secil believes that its Vision, Mission and Values, which are understood and shared by all its Employees, are the benchmark for its position and actions towards its Customers, Suppliers, Community and other stakeholders. The Company is updating these documents, and in 2018 they will be approved and disclosed both internally and externally.

SUSTAINABILITY POLICY, Shelter, Protect and Unite People

Secil is committed to Sustainability, seeking to reconcile its economic performance with environmental respect and responsible citizenship.

The response to global climate change is to reduce the carbon intensity of production, through the circular economy and the promotion of biodiversity, challenges that we accept and will overcome, with continued creation of economic value in the context of globalization. In the communities in which we operate, we aim to integrate and go beyond the expectations of our stakeholders.

Secil includes international institutions and partnerships which have also taken on this same commitment, which can be achieved through the objectives of sustainable development.

Our Sustainability Policy defines our goals and prioritizes our actions to contribute to a better life on this planet for all humanity.

04.01 04.0204.03

04.04

What guides usSustainability managementThe cement manufacturing process within the value chainChallenges of a circular economy

Secil and Sustainability 23

ECONOMIC AND FINANCIAL

We create value for our shareholders, cus-tomers, employees, suppliers and other part-ners.

We seek profitability and financial balance in our operations, in order to ensure business continuity and development.

SOCIAL

We enrich the communities where we opera-te, through job creation, local contracting and community involvement.

We focus on talent, equality of opportunities and the diversity of our employees, promoting merit and fair and equitable remuneration.

HEALTH & SAFETY

We believe that Health and Safety are funda-mental values underpinning all our activities.

We ensure means of protection and pre-vention to all employees, fostering a culture of Health and Safety.

We are committed to achieving ZERO harm to our employees, contractors and communities.

ENVIRONMENTAL

We make responsible use of natural resources and energy, promoting circularity throughout the life cycle of our products.

We aim for carbon neutrality through the use of alternative fuels, secondary raw materials and the development of low carbon products and solutions.

We promote the vitality and balance of the ecosystems we are part of and landscape recovery, protecting biodiversity.

PRODUCT & INNOVATION We continually innovate with new manufac-

turing and management processes, creating safe solutions and quality products that bring more value to the Company, the Customer and Society.

We focus on applying the best production

and control technologies, aiming at a more efficient and clean production.

MANAGEMENT SYSTEM

Secil currently has a single Management System, integrating the various Management Systems within the Group, in order to organize and enhance Quality, Environment and Safety services. To do this, we needed to establish identical management dynamics and cycles, and to consolidate and integrate methodologies, tools and practices to establish only one Policy, one Manual, one Process Map and a single management structure.

All facilities in Portugal are certified by ISO 9001, ISO 14001, EMAS and OHSAS 18001. Tunisia and Lebanon also have ISO 9001 and ISO 14001 certifications.

This Management System is based on an Integrated Quality, Environment, Health and Safety at Work Policy that meets or exceeds legal, regulatory and other requirements. There is also a commitment to a continuous review of its performance in these areas, in order to meet the expectations of all stakeholders.

Monitoring compliance with the objectives defined and regular review thereof are reported regularly, in order to uphold the transparency, engagement and motivation of all those involved, as well as constant updating in response to changes in the standards to be respected.

Secil and Sustainability24

COMMITMENTS UNDERTAKEN BY SECIL, as part of its Integra-ted Policy

1. Quality of products and services

2. Certified laboratories

3. Responsibility and environmentalprotection

4. Secil health and safety policy

5. Serious accident prevention

Environmental and Social Impact Assessment (ESIA) Guidelines | Cement Sustainability Initiative (CSI)

Since 2008, Secil has played an active role in the CSI and can therefore share its experience and know-how on different topics. The first version of CSI ESIA was published in 2005 and updated in 2016.

CSI ESIA aims to be a useful tool for assessing and managing the impacts of an ESIA project in the environmental and social domain throughout the working life of any quarry and cement plant. These Guidelines include another case study published by Secil “Why fuels in cement are so controversial and what should be done about it: ESIA as an instrument for stakeholder involvement”.


BCSD PORTUGAL CHARTER OF PRINCIPLES

Secil has endorsed the “BCSD Portugal Charter of Principles”. This document aims to establish the fundamental principles of sustainability that subscribing companies voluntarily adopt for themselves and that they seek to extend to their value chain within their sphere of influence.

Not being a relevant aspect for operations directly controlled by the Group, in Portugal, it is precisely in its value chain and sphere of influence that companies of the Semapa Group seek to promote the defence of Human Rights.

The BCSD Portugal Charter, in its Principle 2 - Human Rights, lists the following issues:

Respect and promote Human Rights.

Not to tolerate violations of human rights, refusing any type of harassment, discrimination, coercion, abuse, violence or exploitation in its sphere of influence.

Employ suitable efforts to prevent using raw materials that directly or indirectly finance practices involving human rights violations.


04.02 SUSTAINABILITYMANAGEMENT

Secil believes that sustainability actively supports its business strategy, as it is an essential factor for differentiation, revenue generation and value creation.

Sustainability is expressed in its Vision, Mission and in all the commitments undertaken by the company, and is understood as a responsibility and an opportunity. The development of new products and services is driven by our commit-ment to sustainable development and customer needs.

MATERIALITY ANALYSIS

Secil began an extended process of mapping and sounding out its stakeholders in 2017. This project involves the main geographical areas of the Secil Group and aims to identify the most relevant topics (materials) for sustainability management and reporting for the company.

The coordinating teams of each geographical area were asked to be involved in the mapping of their stakeholders, which were then examined through an in-depth interview or materiality questionnaire.

The groups of stakeholders identified are shown in the figure.

The material topics identified in this process will be reflected in Secil's next management and reporting cycle.

Customers Community

SuppliersPartners

Employees Authorities


SUSTAINABILITY GOVERNANCE STRUCTURE

In 2016, Secil decided to create a Sustainability Committee, which will be composed of elements from various company offices. The objective of this structure is to identify the main themes for the national and international sustainability agenda, which may represent risks and opportunities for the company, as well as define internal programmes and objectives related to this theme. This committee reports to the Chief Executive Officer.

This structure is also responsible for the drawing up of the Sustainability report, with this document considered as an important management and communication tool.

RISK MANAGEMENT

The company undertakes an analysis of its risks based on financial risk factors and operational risk factors. The financial risk management is carried out by the Office of Financial Management based on policies approved by the Management.

The Office of Financial Management identifies, assesses and carries out operations with a view to minimizing financial risks in strict cooperation with the Group's operating units. Management defines the principles for risk management as a

whole and policies covering specific areas such as exchange rate risk, interest rate risk, credit risk, the use of derivatives and other non-derivative financial instruments, as well as the investment of excess liquidity.

The operational risk factors considered include several strands, with particular emphasis on the construction sector, demand for Secil products, environmental legislation and energy costs.


04.03 THE CEMENT MANUFACTU-RING PROCESS WITHIN THE VALUE CHAIN

The cement value chain begins in the extraction of raw materials and ends with the end user utilizing the products.

It is a complex process with potential impacts on the environment, particularly in the extraction of raw materials, energy consumption and emissions of pollutants. The visual impact is also important, and this has been mitigated through landscape recovery plans that the company has had in force for several years and in which it has even been a pioneer.

Electrical energy

Raw materialsNatural and secondary

Thermal energyAlternativeAlternative/fuels

12

3

4

5

6

Extraction of raw materials

Raw production

Clinkerization

Cementgrinding

Packagingshipping

Crushing

Electrical energy



Eletrical energy

CO₂ Emissions


Electrical energy


Thermal energyAlternativeAlternative/fuels

12

3

4

5

6

Extraction of raw materials

Raw production

Clinkerization

Cementgrinding

Packagingshipping

Crushing

Electrical energy



Eletrical energy

CO₂ Emissions

Cement manufacturing process#. Main natural and energy resources and emissions


SECIL APPROACH TO IMPACTS IN THE VALUE CHAIN

Compliance with legislation and reporting to official entities

Implementation of best practices and te-chnologies

Anticipation and proactivity

New ways of thinking and acting

Communication with stakeholders

04.04 CHALLENGES FOR A CIRCU-LAR ECONOMY

Secil is strongly committed to the circular economy paradigm, with its factories, quarries and concrete plants being suitable for the recovery and integration of secondary raw materials and alternative fuels in its production processes.

This is a theme which cuts across various business areas in the company.

Secil and its subsidiary companies have developed countless projects within the logic of a circular economy, such as the incorporation of demolition and construction waste into cement and concrete production, the production of recycled aggregates, the sequestration project of CO2 emitted in the factories through the production of microalgae for food and cosmetic purposes, the use of CDW (Construction and Demolition Waste) and plant and animal biomass as alternative fuel for cement kilns, and the development of composite cements with less use of clinker and, consequently, less carbon intensity.


GRI 303-3 Recycled and reused water

2015

2016

2017

13%

14%

13%


Washing water (concrete mixers and pavements and rainwater).

80 to 100%Recycled Water

2000 2017

Thermal and acoustic insulation. Seismic and fire resistance. Indoor air quality. Digitalisation / Home 4.0. Recarbonation of concrete and mortars. Special mortars incorporating materials such as cork.

ALGAFARMCO₂ MitigationMicroalgae production unit

ENERGREENALFAGREENAlternativeFuels

CCUCarbon Captureand Use

Scientific knowledge and applied research

SUSTAINABILITY

Partnership with various European universities and research centres.

INNOVATIONCONSTRUCTION AND DEMOLITION WASTE

Demolition and selectivecollection for reuse,avoiding landfill.

END OF LIFE

ENVIRONMENTAL IMPROVEMENTOF QUARRIES AND BIODIVERSITYPROTECTION

+1M Plants placed in the soil. 100% Cement plants with quarries with a recovery plan.

EXPLOITATION OF NATURAL RESOURCES

PRODUCTION AND USE OF CONCRETE AND DERIVATIVECEMENT PRODUCTS

CONSTRUCTION AND PUBLIC WORKS POPULATION COMFORT SAFETY AND PATRIMONY

CO-PROCESSING OF WASTE

PRODUCTION OF CLINKER AND CEMENT

2M tonne Secondary Raw Materials

CDW Scouring grit Shaping of stone cutting Ceramic shards

Optimization of energy e�ciency

Fly ash Slags Aggregates recovered in the manufacture of concrete

RECOVERY OF MATERIALS

1,5M 1.5M tonnes Alternative Fuels CDR (RSU + Industrial) Tyres Plant Biomass Animal Biomass Oily Sludges

0,724M tonnes CO₂ emissionsavoided

Electrofilters + Sleeve filters Monitoring of gaseous e�uents Studies of dispersion of pollutants and risk analysis for human and ecological health.

EMISSION CONTROL AND MONITORING

BulkBagsBig bags

DISTRIBUTION(means of transport out of the factory)

60% Maritime ShippingCO₂ emissions30% Road Transport10% Rail Transport

SECILAND THE CIRCULAR ECONOMY

05THE PEOPLE AT SECIL

We are determined to take care of our people by improving their health conditions, hygiene and safety in the work places, betting on their development.

We are an inclusive company that bets on diversity.

Internal communication is the key to contact with employees.

Each individual is responsible for adopting safe practices and applying them to all activities, so that safety is a way of life.

05.01 HYGIENE, HEALTH AND SAFETY

SECIL HEALTH AND SAFETY POLICYThe Secil Group considers Health and Safety to be fundamental values that must be addressed in all its activities.

The Group is committed to achieving zero harm for its employees, contractors and communities.

It aims at the highest level of awareness raising and promotion of the continuous improvement of its processes, through the implementation of an effective management system and strong leadership.

Everyone is trained to perform their job as safely as possible.

Achieving Zero HarmFor Our Workforce,Contractors & Communities

05.01 05.0205.0305.04

Hygiene, health and safetyPersonal developmentDiversity and inclusionInternal Communication

The People at Secil 33

COMMITMENTS ASSUMEDWe ask all employees for their personal commitment to some rules that we consider fundamental:

1. I care about my own and everyone else's safety.

2. I always wear my Personal Protective Equipment.

3. I check and follow safety procedures for my work.

4. I keep my workplace clean, tidy and safe.

5. I check my tools and equipments before using them.

6. I only work on equipment when it is stopped and locked out.

7. I stay away from areas under suspended loads.

8. I always place backguards and covers after maintenance work.

9. I respect signs, warnings, and emergency signals.

10. I take immediate actions and report all unsafe situations.

LEADERSHIP

TRAINING

COMMUNI-CATION

OPERATIONALSAFETY

MANAGEMENTSYSTEMS

"I commit myself to put safety first!"

THE 5 FOUNDATIONS OF SECIL’s HEALTH AND SAFETY POLICY

WORK AT A HEIGHT

WORK IN CONFINED SPACES

HOT WORK

DANGEROUS ENERGIES CONTROL

RULES FOR TRANSPORTATION

RULES FOR CONTRACTORS

INTERNAL CIRCULATION PLAN

LOADING OPERATIONS

CHECKING WORK EQUIPMENT

THE KEY ISSUESEnsure that all facilities have and enforce safety standards for the following key issues:

The People at Secil34

MOTTO FOR 2018: WE WANT TO GET HOME SAFELY. ALL! EVERY DAY!

SAFETY ROADMAP2017-2020CEMENT PLANTS

A challenge was launched in July 2016 for various cement plants to develop a Safety Roadmap for the period 2017-2020.

OBJECTIVE:Design the safety path to be followed, showing the actions and projects to be car-ried out at each site and the expected results with the implementation of these measures.

SHARES:1. Have at least one action / project for each of the Policy Foundations (in all factories);

2. Have procedures effectively implemen-ted in all factories for Critical Activities or Key Issues. And at the corporate level, create Group Standards with mandatory minimum requirements, for each of the topics (Group Safety Standards);

3. Have initiatives to publicize The Personal Commitments to all employees.

HEALTH AND WELL-BEING

We give equal importance to health, focusing on the control of health risks in the workpla-ce, ensuring the ability to perform tasks sa-fely and promoting the health and well-being of our employees and subcontractors.

We promote the comfort of our employees by providing spaces equipped for your rest and leisure, such as the Secil's Staff Houses in Maceira and Pataias and Secil's Staff House Pavilion in Setúbal.



GRI 403-2 Total Nº of accidents with lost workdays(direct employees)

2015

2016

2017

80

71

54

GRI 403-2 Total Nº of accidents with lost workdays(indirect employees)

2015

2016

2017

24

35

30


GRI 403-2 Severity index of accidents with lost workdays(indirect employees)

2015

2016

2017

126,5

207,2

84,9

GRI 403-2 Severity index of accidents with lost workdays(direct employees)

2015

2016

2017

388,4

284,0

227,2

GRI 403-2 Severity index of accidents with lost workdays(global)

2015

2016

2017

281,5

243,2

128,2

GRI 403-2 Frequency rate of accidents with lost workdays(direct employees)

2015

2016

2017

14,8

13,1

10,1

GRI 403-2 Frequency rate of accidents with lost workdays(indirect employees)

2015

2016

2017

6,4

5,7

2,5

GRI 403-2 Frequency rate of accidents with lost workdays(global)

2015

2016

2017

11,4

9,2

4,8


DECREASING TREND:Due in particular to increased concern and relevance with safety issues in general, ope-rationalized by various initiatives in different geographical areas. At this time in all geogra-phies we have Safety Moments, Safety walks, safety dialogues, among other initiatives that contribute to a decrease in the frequency and severity indexes.

GRI 403-2 Nº of deaths(other employees)

2015

2016

2017

0

1

1

GRI 403-2 Nº of occupational diseases

2015

2016

2017

0

0

1

GRI 403-2 Rate of Absenteeism

2015

2016

2017

5,3

N.D.

2,9

GRI 403-2 Nº of deaths(employees with work contracts)

2015

2016

2017

0

0

0


WHAT IS BEING DONE IN...Some examples:

DAILY SAFETY DIALOGUES - DDSThis project was launched in 2016 at the Portugal Cement Unit.

WHAT ARE THEY?The Daily Safety Dialogues are small con-versations aimed at alerting employees to safety issues in their daily activities. They last between 5 and 15 minutes, always be-fore the beginning of the work day, and this time is reserved for discussions and basic instructions on matters related to accident prevention.

OBJECTIVES:

1. Share knowledge and experiences on sa-fety issues;

2. Increase employees' perception of risks;

3. Remind employees of the risks involved in the activity that will be carried out on that day and the existing protection measures;

4. Safety culture.

SAFETY WALK This project was launched in 2016 at the Portugal Cement Unit.

WHAT ARE THEY?Creating a routine visit of the premises by managers to promote safe behaviour and attitudes of employees while carrying out their daily tasks. This initiative contributes to the culture of safety that we are developing, using the motto “Leading by example".



To reinforce and give greater emphasis to the motto "Leading by example", Secil's Exe-cutive Committee has, since January 2017, decided to participate by holding a monthly Safety Walk.

SAFETY COMMUNITYCreated in 2017 in the Communities area of the Secil Connect Intranet.

WHAT IS IT?A platform for consultation, discussion and sharing of issues related to Health and Sa-fety.

In the main Community there are forums for discussion of more comprehensive and cross-cutting issues such as:

What is Safety?

What are the personal commitments of each one to this area?

Also part of this page is the Group Policy for Health and Safety defined and approved in October 2016, in all languages in use in the Secil Group.

Several subcommunities are also defined, depending on the themes that are being worked on at any moment.

WHAT IS BEING DONE IN...Examples:

TUNISIAAs part of the health monitoring and control of workers, the SCG required service providers to provide a certificate of medical fitness for their employees prior to performing work at the facility. This practice applies to all perma-nently or occasionally employed workers.


BRAZILImplementation of an environment and health and safety management system.

In 2017 several actions were carried out which were reflected through positive developmen-ts in the main health and safety indicators at work. Among the actions carried out were: Campaigns, Safety Training, Operational Sa-fety and Safety Management.

By 2017, all SECIL business areas at the inter-national level had implemented a Performan-ce Evaluation System. This evaluation system seeks to recognise, reward and distinguish outstanding performance in the areas of Eco-nomics/Finance, Operations and Quality/Sa-fety/Environment, among others.

In addition, this system aims to identify training needs and potential employee pro-motions/career progressions.

Based on the results obtained by the Com-pany and the results of the Performance Evaluation of each employee, individual per-formance bonuses are awarded.

WHAT IS BEING DONE IN PORTU-GAL AND IN THE SECIL GROUP...

BUILD UP |COMPETENCY DEVELOPMENT PROGRAMME

This international programme was started in April 2017 and involves about 160 people from the Secil Group.

05.02 PERSONAL DEVELOPMENTOur people are our most valuable asset. We focus on developing the skills of our em-ployees.

This is a strategic investment aimed at increa-sing its employees' performance levels in or-der to generate value. It is a key input into the Company's sustainable development.

For this purpose, SECIL runs 4 Training Cen-tres operating at the Cement plants in Por-tugal.

Queremos valorizar as competências das nossas pessoas oferecendo oportunidades de crescimento

WE WANT TO GIVE VALUE TO THE COMPETENCES OF OUR PEOPLE BY OFFERING GROWTH OPPORTUNI-TIES


WHAT IS IT?The BUILD UP Development Programme allows the creation of a people development strategy that is aligned with the objectives and positioning that Secil wants to achieve.

This transformation process is based on a differentiating form of leadership to maintain the Company at the forefront of the market.

The 7 key Competencies that support and enhance the transformation project:

1. Analysis and Resolution of Problems

2. Promotion of Change

3. Management of Execution

4. Focus on the Customer

5. Leading Performance

6. Ability to Influence Others

7. Personal Development

In addition to the Individual Development Plans (IDPs) established for each of our employees, training focused on the following is underway:

A greater understanding of what it means to lead;

Increasing the ability to use tools and strategies to address key leadership challenges and opportunities;

Personal awareness, a key factor for growth and leadership effectiveness.


GRI 404-1 Total Nº of hours of training

2015

2016

2017

5.235

9.647

14.835


05.03 DIVERSITY AND INCLUSIONSecil belongs to the Semapa Group, where the principle of non-discrimination occupies a central place and was formally entered into its records on 30 December 2002, when Semapa’s Board of Directors approved a set of ethical principles, intended to be promoted within Semapa itself and in the companies controlled by it, which is provided for in Article VIII, paragraph no. 4:

Secil values diversity and promotes an inclusive, fair workplace that promotes respect for all employees. We promote equal opportunities in recruitment, employment, promotion, development, compensation and retention. We treat employees with dignity and respect at all times - including direct employees and subcontractors.

However, the fact that the company notably works in the industrial sector, along with the historical contexts associated with the most common professions in the industry, and in some geographical areas as well as very strong cultural elements, explain why there is a stronger presence of the male gender than the female gender among SECIL employees. It should be noted that there has been an evolution towards greater parity.

GRI 404-3 % of employees receiving perfor-mance analysis

2015

2016

2017

-

70

77

4. In the internal relations of the company and in those with third parties, Semapa employees shall not carry out or accept discrimi-nation of any kind, particularly by reason of ancestry, gender, race, language, area of origin, religion, political or ideological convictions, education, economic situation or social condition.


GRI 405-1 Diversity in governance bodies(% Women Managers)

OUR PERFORMANCE –GRI INDICATORS

GRI 405-1 Diversity in governance bodies and employees(% Women)

GRI 405-1 Nº of secondees abroad

05.04 INTERNAL COMMUNICATIONInternal Communication is fundamental for the involvement of Group staff, no matter what company they work for in whatever geographical region. The main internal communication vehicles that Secil uses are: - Secil Informa | Printed magazine periodically distributed to most employees in Portugal;

Cimentar | newsletter distributed with the Cimentos Madeira group, in digital format. All issues of the newsletter are posted on the Cimentos Madeira Group website (www.cimentosmadeira.com);

Secil Connect Intranet | Place where do-cuments, photographs and videos are published, as well as the company's clippings and internal regulations.

2015

2016

2017

2015

2016

2017

2015

2016

2017

11,8

ND

12

12

14

12

ND

ND

14


06SECIL AND THE ENVIRONMENT

To ensure a responsible performance standard that makes the use of natural resources compatible with the maintenance and development of the ecosystems in which the company operates.

To mitigate the impacts of its actions, through the adoption of the best technologies and best practices available and the appropriate training of its employees. To promote biodiversity in the territories under its management. To reduce the carbon impact of its activity, including by promoting the use of secondary raw materials and alternative fuels. To provide the public with regular data on its environmental performance.

06.01 CLIMATE CHANGE AND ENERGYCement production accounts for approximately 5% of global human-made CO2 emissions.

The main greenhouse gas (GHG) resulting from the cement manufacturing process is carbon dioxide (CO2), the direct emission of which originates from two distinct sources: i) the calcination of the carbonates present in the main raw materials (limestones and marl), which contributes about 60% to the total emission; and ii) the burning of fuels in kilns, which contributes the remaining 40%.

In recent years SECIL has made major investments to reduce its CO2 emissions by increasing its thermal and electrical efficiency, increasing the co-processing of alternative fuels, using secondary raw materials and testing innovative technologies for carbon capture (microalgae) and low carbon intensity production of cement and clinker.

06.01 06.0206.0306.04

Climate change and energyEmissionsWaterBiodiversity

Secil and the Environment 47

Secil is a member of the CSI (Cement Sustainability Initiative) of the WBCSD and, since its creation, the companies involved with this initiative have focused on CO2

reduction.

The CSI's work has identified four main levers to reduce CO2 emissions:

1. Energy efficiency through modern dry process technology.

2. The use of alternative fuels (including bio-mass) to replace coal and petroleum coke in the process of heating the cement kilns.

3. The replacement of clinker in cement with other mineral components.

4. Carbon capture and storage.

GRI 305-1 Specific CO2

emissions

(kg CO2/t

clínkler)

2015

2016

2017

853,0

835,5

848,4


GRI 305-1 Direct CO2 emissions (tCO2e)

2015

2016

2017

3.899.022

3.788.166

4.051.204

Secil and the Environment48

GRI 302-1 Energy consumption within the Organization (GJ)

GRI 302-1Renewable Energy Consumption (GJ)

2015

2016

2017

2015

2016

2017

14.115.590

12.720.160

13.475.620

3.536.796

3.227.506

3.542.054

WHAT IS BEING DONE IN PORTU-GAL AND WHAT WILL BE DONE IN THE WORLD OF SECIL...

ROAD MAP FOR A LOW CARBON ECONOMY - SECIL PARTICIPATING IN THE STEERING COMMITTEE IN THE PROJECT LAUNCHED BY ECRA

To achieve an 80% reduction in greenhouse gas (GHG) emissions by 2050, as suggested by the European Commission, innovative and breakthrough technologies will be needed, involving significant research investment and financial feasibility for their implementation (for example, it is estimated that 85% of clinker production will have to be fitted with Carbon Capture and Storage (CCS) technology.

Secil is participating in the Steering Committee of a large-scale R&D project, launched by ECRA (“European Cement Research Academy”), designed, with the support of equipment manufacturers, to test the technical and economic viability of the application of CO2 capture technologies in cement plants. This project is going ahead with the assembly of a



BRAZIL – Sustainable use of electricity

The facilities in Brazil have defined an Energy Efficiency plan, based on 4 foundations:

1. Investment in automation to activate ligh-ting and equipment.

2. Use of more efficient light bulbs.

3. Conscious use of compressed air.

4. Considered use of air conditioning.

pilot facility (capacity: 500 to 1000 t clinker/day), which involves a considerable investment and where the innovations and adaptations necessary for the use of oxyfuel technology in a cement line, designed and evaluated in models, will be tested, in order to confirm technical feasibility and to more rigorously define the conditions for its economic viability.

The success of such a project relies heavily on the downstream solution (storage and/or use of captured CO2), and conditions and/or solutions that allow for the physical and economically viable flow of the very significant amounts of CO2 resulting therefrom.


06.02 EMISSIONSThe cement manufacturing process is associated with macro pollutant emissions (CO2, NOx, SO2 and VOCs) and other micro-pollutants (heavy metals and PCDD/F).

Over the last 20 years, Secil has made signif icant investments to reduce its emissions by means of various control means, particularly sleeve filters, low NOx burners, SNCR (Selective Non Catalytic Reduction) systems - to control NOx emissions, and lime/calcium hydroxide injection - to control SO2 emissions. In addition to these devices, it also has systems for retention of particles such as electrostatic precipitators and bag filters.

Currently, all facilities are equipped with continuous monitoring of particulate and gas emissions. For heavy metals, dioxins and furans, ad hoc monitoring is carried out.

GRI 305-7 SOx (t)

2016

2017

1.046

1.345


GRI 305-7 NOx (t)

2016

2017

5.622

5.018

GRI 305-7 Partícles (t)

2016

2017

66

20


WHAT IS BEING DONE...

BRAZIL – Online emission monitoringEmission control at Supremo Secil relies on online meters, modern processes and equip-ment in the kiln, cooling and cement grinding systems.

Particle emission values are extremely low, with the average about 0.7 mg/Nm3 in the kiln, and the legal limit being 50 mg/Nm3.

In order to comply with the legal limit on NOx emission, the company is working on an ammonia injection project.

06.03 WATERThe cement industry, albeit not a significant sec-tor in terms of water consumption, represents about 2% of world consumption. The water used in the manufacturing process (for cooling equi-pment) is in a closed loop (recycling/re-use) and part of this is lost by evaporation.

Water management is a major global challenge. The increase in population, the increase in industrial and agricultural activities in new markets, pollution and the impacts of climate change are factors that are combining to put local water resources at an unprecedented level of stress.

Water scarcity can lead to practical and commercial risks for a wide range of companies and sectors, including the cement industry. These risks can be addressed through the implementation of a comprehensive water resources management strategy which, in addition to mitigating the risk of water scarcity, can also improve stakeholder relations. In order to implement water management measures and meet stakeholder expectations, data concerning water needs to be accurate, relevant and easy to understand. This requires consistent use of metrics, terminology, and definitions.

WHAT IS BEING DONE...

LEBANON – Installation of meters

Lebanon has installed meters in the areas of greatest consumption, seven in total, with the aim of better monitoring its consumption and being able to adopt measures to reduce water consumption.

Aware that it is possible to improve its perfor-mance in water management, Secil intends to implement measures in all its units that will make it more efficient in the management of this essential resource for the survival of the human species.

2015

2016

2017

2015

2016

2017

1.798.564

1.669.884

1.834.241

0,318

0,277

0,369


GRI 303-1 Total water consumption m3

GRI 303-1 Total water consumption (m3/t cement)


06.04 BIODIVERSITYSecil recognizes the importance of biodiversity in managing the sustainability of its activity. In order to reduce its impact on biodiversity, Secil has been developing strategies, in particular through the implementation of Landscape Recovery Plans and Action Plans for the Promotion of Biodiversity. These plans are based on the assumption that a fully rehabilitated system encompasses not only the composition and structure of plant and animal communities, but also the recovery of the functions and natural processes of the ecosystem.

PARTNERSHIPS | SCIENTIFIC KNOWLEDGE AND APPLIED RESEARCH

Scientific knowledge and applied research are aspects underpinning the recovery process of Secil's quarries. The development of scientific studies and the interconnection of multidisciplinary teams is essential for the identification of innovative solutions and the development of new techniques. To this end, Secil relies on the support of a large team of researchers from the Faculty of Sciences of the University of Lisbon and the University of Évora.

Partnership with the Faculty of Sciences

An example of a long-term partnership is that established with the Faculty of Scien-ces of the University of Lisbon which, sin-ce 1998, has been carrying out scientific follow-up of the areas recovered at Secil's quarries in Outão.

These years of partnership have led to te-chnical and practical solutions for the rehabilitation of quarries to be tested and developed, and these currently define the methodologies of the Recovery Plans.

Some of the research areas include: hydro-seeding, soil, native species, seed germina-tion and control of invasive species in the revegetated areas.


In 2016 and 2017:

Quarries with recovery plans

Quarries with high biodiversity values which have biodiversity management plans:

Classified Areas: 3,3 km2

86%

100%(cement)

75%(total)


WHAT IS BEING DONE IN PORTUGAL AND IN THE SECIL GROUP...

ENVIRONMENTAL AND LANDSCAPE RECOVERY PLAN (PARP)

The quarries of the three existing plants in Portugal have an Environmental and Landscape Recovery Plan (PARP), the aim of which being the gradual recovery of the worked areas and minimizing the negative impacts cause by the quarrying process, taking into account the characteristics of the worked areas and the surrounding area. This task is carried out through the drawing up of Triennial Programmes, which include planning for working the areas and recovery works.

STUDY AND IMPROVEMENT OF BIODIVERSITY, FAUNA COMPO-NENT The aim of the Action Plan, in coordination with the Recovery Plans, is to promote natural fauna colonisation of the recovered areas, based on active, adaptive management with regular monitoring of the fauna and continuous assessment of the effectiveness of the measures proposed, such as providing artificial shelters and increased availability of water.

Recently, several case studies have been developed for target groups/species, which are considered good models to evaluate the effects of the company's activities and the measures proposed in the Action Plan for fauna. For example: “The role of carnivores in seed dispersal” and “Comparison of reptile abundance and micromammals in areas of increased refuge”.

Our Strategy

Phases

Landscape Recovery Plans

Biodiversity Action Plans

CSI & CembureauWorking Groups

StudiesUniversities

Modelling

Vegetation on Cover

Maintenance & Monitoring


CHARACTERIZATION OF FAUNA IN ARRÁBIDA NATURAL PARK

Objective: Contextualising the fauna of the Outão property in the surrounding area

What does SECIL's fauna represent in the context of the Arrábida National Park?

Secil Outão Property

Study area (5 km bu�er)

Arrábida Natural Park land area

Municipalities*Outline of the ANP area carried out within a 5 km bu-ffer around the Outão property.

Carabids

Butterflies

Birds

Mammals

Total

Fauna Groups

27

24

58

14

123

34

44

79

15

172

Number of species in the ANP*

Number of species at

SEClL-Outão


As for the monitoring of local fauna, the company tracks and controls a wide variety of native species including: 20 mammal spe-cies, 220 bird species, 7 reptile species and 20 amphibian species.

Highlights Although the Outão property represents

8% of the case study area, 72% of the species sampled in the ANP had been registered.

This result seems to indicate that, overall, the Outão property is representative of local species wealth.


BRAZIL – Biodiversity Manage-ment at Secil Supremo

Biodiversity management at Supremo Secil began in 2013, and has shown results of great importance in the conservation of local fauna and flora.

There is a forest reserve of 77 hectares, which corresponds to 31% of the property at Adria-nópolis/PR. Within the total forest reserve area, 34.38 hectares are areas reclaimed by a dedicated team in which around 20,000 trees native to the rainforest have been planted.

07SECIL AND THE COMMUNITY

The well-being of the communities surrounding its facilities is a long-standing concern undertaken by the company. There are numerous initiatives that Secil has been developing in areas as diverse as education, science and technology, culture and sports as well as social solidarity.

07.01 ENVIRONMENTAL AWARENESS INITIATIVESSecil develops environmental awareness actions of different types.Of note are the following:

Support for the International OIKOS Environ-ment Congress in Leiria.

Cooperation protocol and multiannual funding established between Secil, ICNF - Institute for Nature and Forestry Conservation, ISPA - Institute for Applied Psychology and the University of Algarve regarding the study and protection of the Luiz Saldanha Marine Park.

Enhancing the Environmental Monitoring Committees for Setúbal and Maceira.

Support for the Arrábida Club in the environ-mental recovery of Praia do Creiro, near Porti-nho da Arrábida, through the replenishment of the beach dragged out to sea during the winter, which has enabled sports activities to be restarted at the beach in that location.

Beach cleaning campaign promoted by the Arrábida Club.

WHAT IS BEING DONE IN PORTU-GAL AND IN THE SECIL GROUP...

ENVIRONMENTAL MONITORING COMMITTEES (CAA)

In 2003, Secil voluntarily created the Environmental Monitoring Committee for Outão (CAA), with the purpose of analyzing and discussing the different activities of the company, by using its representatives to inform the company. This initiative, one of the first in Portugal, seeks to monitor the environmental and social performance of the plant. Later, in 2006, the CAA for the Maceira-Liz plant was set up. The internationalization of the Environmental Monitoring Commission took place in 2012 at the Gabès plant in Tunisia and in 2015 in Adrianópolis in Brazil.

07.0107.02

07.0307.04

Environmental awareness initiativesInitiatives to engage with the local communitySecil AwardsPartnerships

Secil and the Community 57

07.02 INITIATIVES ENGAGING WITH THE LOCAL COMMUNITY

VISITSAmong the various initiatives open to the pu-blic are student visits to different plants and the Open Doors Week, an annual event that the community of Setubal has taken part in with great enthusiasm since 2004. This initiative is open to individuals who wish to visit the plant.

Secil works with several educational projects, particularly visits to the Secil-Outão and Ma-ceira-Liz Plants, which are generally organized for student groups. We also welcome groups of professionals who are interested in our plants and their manufacturing processes.

Secil has a Museum on the premises of the Ma-ceira-Liz Plant, which opened on 22 April 1991 and was remodelled in May 2011. It is called the Maceira-Liz Plant Cement Museum. Among the regular activities offered by the museum are those of the Educational Service, mainly programmed for schools, providing its visitors with the opportunity of a guided tour by former workers and technical staff.

SUPPORTOf note among the many contributions to the community are the annual support and funding to multiple projects in the region, through the sponsorship law, as well as sponsorship of sporting events, local festivals and concerts, thereby benefiting thousands of citizens. We intend to continue to maintain a close relationship with the local community, just as we have done up to now.

Secil maintains a financing agreement with the Parish Council of Maceira where it supplies construction materials such as cement and prefabricated materials. In 2017, it also collaborated with the Parish Council of Pataias in offering construction materials for the construction of a cycle path and a skatepark.

Of note in 2017 was the donation of 350 tonnes of cement to fire victims for the recovery of affected communities in 24 municipalities in the Centre of Portugal.

Cement is an essential commodity for the safety, comfort and heritage of populations, and the event of a calamity this need becomes even more evident. With hundreds of housing units, agricultural facilities, public facilities and industrial buildings to be recovered, the Company decided to intervene through providing its product.

Community Financing2016 | 2017


1M€

Secil and the Community58


CEMENT MUSEUM

Maceira-Liz is a factory with considerable history and culture, which is very well documented in an interesting museum. The Cement Museum, which in 2016 celebrated its 25th anniversary, is a non-profit institution with the aim of preserving the historic heritage of the manufacturing facility and it offers guided tours to various places of interest:

1. Museum – Central Nucleus – With a per-manent exhibition that addresses the factory’s history from the 1920s to the present day.

2. Turbo Power Plant - A building designed to produce electricity, which retains its historical architectural features.

3. Locomotive Nº 1 – A locomotive acqui-red in 1926 which remained in operation until 1987.

4. Line III Museum Circuit – Former facilities and equipment of a production line installed in the 1930s.

5. Interpretation and Documentation Centre - This incorporates the Museum’s technical services, the auditorium, the documentation office and the museum resources.

6. Limestone Quarry Observatory – Here, you can learn about the local geological and palaeontological background and observe some wild bird species that seek out the quarry as a feeding ground, refuge or nesting place.

7. Jurassic Garden - A garden holding a small collection of fossils properly identified and some interpretative panels on the theme.

8. Water Park - A space created to draw public attention to the importance of water resources and to provide some knowledge on the water treatment process at the Maceira-Liz plant.



BRAZIL – MEDIA PROGRAMME AND ENVIRONMENTAL EDUCA-TION

OBJECTIVE:To improve understanding of the sustainable use of natural resources; relate the industrial actions involving alteration of the natural environment with preventive measures and protection of the environment, as well as to publicize the Environmental Management programmes at Supremo Secil and encoura-ging responsible consumption and protection of the natural environment.

TARGET AUDIENCE:Local community, schools in the Pomerode Municipal Education Network and company employees.

During 2017, several initiatives were develo-ped such as environmental education lec-tures, visits to the temporary waste storage centre and Ecological Trail Tours.


BRAZIL – SOCIO-ENVIRONMEN-TAL INITIATIVE PROGRAMME

Supremo Secil’s Socio-environmental Initiative Programme aims to directly and indirectly contribute to the development of the communities where it is present while based on its values, through the generation of employment, income, social investments and partnerships in projects for citizenship training.

Some of the Programmes being developed are:

School Open Doors:This aims to open the “doors” of the plant to welcome schools in the region (5th year and 3rd year of Secondary School). The groups vi-sit and learn about the cement manufacturing process, and the environmental programmes. Visits are held once a month and the annual schedule for visits is set at the beginning of the school year along with the schools.

Family Open Doors:This is a pilot project at the Adrianopolis Plant, and aims to welcome employees and their families to learn about the cement manufacturing process as well as the environmental programmes and socialize with each other. This activity takes place twice a year.

Supremo Student:This is a project in partnership with the 2nd level public schools in Adrianópolis, Ribeira and Pomerode. Each year the company selects a student from each municipality that has completed High school with good grades to become a SUPREMO Student. The best student in each Municipality receives a prize (notebook) as an incentive to continue studying and a technical visit to the plant along with their family members.

Supremo also includes an Environmental Moni-toring Committee, the main purpose of which is to share information between the community and the company, bringing knowledge about the environmental management of operations to all involved, to establish an environment of total transparency.



07.03 SECIL AWARDSThe Secil Awards, an initiative which has exis-ted for nearly 20 years, are another aspect of its sponsorship policy, promoting the public recognition of national designers of Portu-guese Civil Engineering and Architecture pro-jects.

The aim of the Secil Civil Engineering Award is to foster and promote public recognition of the designers of solutions that have been applied in practice in construction works and that represent significant contributions to the enrichment of civil engineering and that are recognized for their appropriate use of ce-ment, the material manufactured by Secil which it considers to be its core vocation.

The 2014 Secil Civil Engineering Award was awarded by Secil and the Portuguese Engi-neers Council to the "Baixo Sabor Hydroelec-tric Project", designed by the EDP Produção's dams team, coordinated by the engineer Domingos Silva Matos. Every two years, the award - recognized as Portugal's most presti-gious civil engineering prize - recognizes the most significant project in the area.

07.04 PARTNERSHIPSSecil has also sought to collaborate with a number of national and international partners on sustainability, including ATIC (Associação Técnica da Indústria do Cimento - Cement Industry Technical Association), CEMBUREAU (European Cement Association), WBCSD (World Business Council for Sustainable De-velopment), BCSD Portugal (Business Council for Sustainable Development), CSI (Cement Sustainability Initiative) and Grace - Grupo de

Reflexão e Apoio à Cidadania Empresarial (Re-flection and Support Group to Corporate Citi-zenship), a pioneering non-profit association, exclusively dedicated to the promotion of Cor-porate Social Responsibility.

The company regularly participates in confe-rences and seminars as a speaker, publishes its scientific publications and articles (whether in the area of biodiversity or in terms of air emissions) and cooperates in conducting various academic studies and theses.

PROTOCOLS WITH EDUCATIONAL ESTABLISHMENTS

To support the Group’s Recruitment and Re-search & Development activities, Secil has been developing closer relationships with higher education establishments specializing in Civil Engineering, Chemistry and Materials, to establish the bases for academic, scientific and technological collaboration.

The Cimentos Madeira Laboratory ("LCM") continues to collaborate with the University of Madeira, Regional Laboratory of Civil Engi-neering and Vocational Institute of Transport and Logistics ("IPTL").


SCIENTIFIC PAPERS

As part of its partnerships with universities in plants in Portugal, Secil has published several scientific articles and posters:

Mexia T., Nunes A. & Correia O. 2017. Quar-ry rehabilitation: success evaluation after 30 years. Arid Lands Restoration Scientific Fact Sheets: state of the art knowledge in science, successes and case studies in restoration / COST Action ES1104. Quick Reference Sheet 12. (available at http://gala.gre.ac.uk/17103/).

Nunes A., Oliveira G. & Mexia T. 2017. Adap-tive management in restoration: benefits of pine thinning in mixed plantations. Arid Lands Restoration Scientific Fact Sheets: state of the art knowledge in science, successes and case studies in restoration / COST Action ES1104. Quick Reference Sheet 17. (available at http://gala.gre.ac.uk/17103/).

Sílvia Barreiro, Denis Medinas, Sofia Eufrázio, Carmo Silva, Vânia Salgueiro, Pedro Salgueiro, Alexandra Silva António Mira. Effect of Lands-cape Rehabilitation Plans on bat flight activi-ty and species composition at an operating quarry. Poster "14th European Bat Research Symposium - EBRS".

Pedro A. Salgueiro, António Mira, João E. Rabaça, Carmo Silva, Sofia Eufrázio, Denis Medinas, Giovanni Manghi, Bruno Silva, et al. (2017). Thinking outside the patch: a multispecies comparison of conceptual models from real-world landscapes. Landscape Ecology (2017). https://doi.org/10.1007/s10980-017-0603-y

ANNEXESGRI Table

Annexes66

GRI 102:General Contents

Standard

Indicator/Response

Organizational ProfileLegal

CorrespondencePage

102-1 Name of organizationSecil – Companhia Geral de Cal e Cimento, S.A.

102-2 Activities, brands, products and services03.01 THE GROUP AND BUSINESSES and 03.03 THE PRODUCTS

10-1214-16

10-12

10-12

6-710-12

102-6 Markets served03.01 THE GROUP AND BUSINESSES

102-7 Size of the organization01. MAIN NUMBERS AND EVENTS OF THE BIENNIUM 03.01 THE GROUP AND ITS BUSINESSES

102-8 Information on Employees and other workersTotal number of workers by type of contract, by region

102-5 Type and legal nature of the propertySecil is a business Group that is based on the production and commercia-lization of cement, ready-mix concrete, aggregates, mortars, prefabricated concrete and hydraulic lime.

Semapa is a publicly held company that owns the entire capital stock of Secil and is listed on the Lisbon Stock Exchange (Lisbon Euronext), and forms part of the PSI 20 benchmark index.

102-3 Location of head officeAv. Eng.° Duarte Pacheco, 19 7° 1070-100 Lisbon, PortugalOutão Head Office - Apartado 71 2901-864 Setúbal, Portugal

102-4 Location of operations03.01 THE GROUP AND BUSINESSES

CSC | Article 508-G, paragraph 2, item (a)

Contract(includes permanent and fixed-term employees)

Temporary staff(includes temporary employees and trainees)

Total Employees

Angola

Brazil

Cape Verde

Lebanon

Portugal

Tunisia

Subtotal

Angola

Brazil

Cape Verde

Lebano

Portugal

Tunisia

Subtotal

N.º of Employees

178

602

35

425

825

243

2 308

0

0

0

8

29

15

52

2 360

170

571

36

429

793

242

2 241

0

0

0

8

12

9

29

2 270

2016 2017

General Contents

Annexes 67

Standard Indicator/ResponseLegal

CorrespondencePage

Total number of workers by type of contract, by gender

Note | In Lebanon and Tunisia, employees of subsidiary companies for materials were not accounted for.

Total number of workers by type of employment, by gender

Contract(includes permanent and fixed-term employees)

Full-time

Temporary staff(includes temporary employees and trainees)

Part-time

N.º ofEmployees

N.º of Employees

2016

2016

2017

2017

Total Employees

Total Employees

Men

Women

Subtotal

Men

Women

Subtotal

Men

Women

Subtotal

Men

Women

Subtotal

2 043

288

2331

2 067

293

2 360

24

5

29

2 360

0

0

0

2 360

1 985

273

2 258

1 993

277

2 270

8

4

12

2 270

0

0

0

2 270

102-9 Supply chainThe Secil Group acquires various types of products and services particularly components (aggregates, adjuvants and packaging materials) as well as basic consumables which form part of its processes (fuel and electricity) and general services.

102-10 Significant changes in the organization or its supply chain01. MAIN NUMBERS AND EVENTS OF THE BIENNIUM

102-11 Approach to the precautionary principle04.02 SUSTAINABILITY MANAGEMENT - RISKS

102-12 Approach to the precautionary principle07.01 ENVIRONMENTAL AWARENESS INITIATIVES07.02 INITIATIVES ENGAGING WITH THE LOCAL COMMUNITY07.03 SECIL AWARDS

6-7

27

5657-6162-63

Annexes68

Organization Type of Participation

AECOPS – Associação de Empresas de Construção e Obras Públicas e Serviços (Association of Construction and PublicWorks Companies and Services)

AIP - Associação Industrial Portuguesa (Portuguese Industrial Association)

AISET - Associação da Indústria da Península de Setúbal (Setúbal Peninsula Industrial Association)

ATIC - Associação Técnica da Indústria de Cimento (Technical Association for the Cement Industry)

BCSD - Conselho Empresarial para o Desenvolvimento Empresarial (Business Council for Business Development)

Cembureau– The European Cement Association

CENI - IPS - Centro de Integração e Inovação de Processos - Associação de I&D (Process Integration and Innovation Centre - R&D Association)

COTEC Portugal - Associação empresarial para a Inovação (Business Association for Innovation)

GRACE - Portal da Responsabilidade Social Empresarial (Social Responsibility Business Portal)

WBCSD CSI - World Business Council for Sustainable Development – Cement Sustainability Initiative

Associate Member

Carries out functions in the Corporate Bodies



Associate Member



Associate Member


Associate Member

Strategic approach

Ethics and Integrity

102-14 Statement from the Board00. MESSAGE FROM THE CEO

102-16 Values, principles, standards and rules of conduct04.01 WHAT GUIDES US

102-18 Governance Structure04.02 SUSTAINABILITY MANAGEMENT - SUSTAINABILITY GOVERNANCE STRUCTURE

102-15 Main impacts, risks and opportunities03.05 INNOVATION 04.02 SUSTAINABILITY MANAGEMENT - RISK MANAGEMENT04.04 CHALLENGES FOR A CIRCULAR ECONOMY

102-21 Stakeholder consultation on economic, environmental and social issues04.02 SUSTAINABILITY MANAGEMENT - MATERIALITY ANALYSIS

102-22 Composition of the highest governance body and its committeeshttp://www.secil-group.com/missao-visao-valores/corpos-sociais/

102-24 Appointment and choice of the hierarchically most senior governance bodySecil is part of the Semapa Group, which is responsible for appointing the Company's Corporate Bodies

Governance

CSC | Article 508-G Paragraph Number (2) item (a) and item (d)

DL89 | Introduction, 5th Paragraph

CVM (Portuguese Securities Code) |Article 245-A, Paragraph 4, item (r)

CVM (Portuguese Securities Code) |Article 245-A, Paragraph 4, item (r)


CorrespondencePage

4-5

27

26

20-2127

30-31

Annexes 69

Engaging with Stakeholders

Reporting practices

102-40 List of stakeholder groups04.02 SUSTAINABILITY MANAGEMENT - MATERIALITY ANALYSIS

102-41 Collective bargaining agreements

Percentage of trade union members

2016 2017

48% 48%

102-42 Identification and selection of stakeholders.04.02 SUSTAINABILITY MANAGEMENT - MATERIALITY ANALYSIS

102-43 Approach to stakeholder engagement04.02 SUSTAINABILITY MANAGEMENT - MATERIALITY ANALYSIS

102-44 Main issues and concerns identified04.02 SUSTAINABILITY MANAGEMENT - MATERIALITY ANALYSIS

102-46 Defining report content and Limits of topics02. ABOUT THIS REPORT

102-47 List of material topics04.02 SUSTAINABILITY MANAGEMENT

102-48 Reformulation of informationNot applicable

102-49 Changes in reportingNot applicable

102-50 Period covered by the report1 January 2016 to 31 December 2017

102-51 Date of most recent previous reportThe last report dates from 2014/2015

102-52 Publication cycleSustainability reports are published biennially.

102-53 Contacts for questions about the report 02. ABOUT THIS REPORT

102-54 Declaration of compliance with GRI Standards02. ABOUT THIS REPORT

102-55 GRI IndexThis table

102-56 External verificationReport not verified

102-45 Entities included in the consolidated financial statements2016 RBD and GR - 2.1 Turnover and 2.2 Results2017 RBD and GR - 2.1 Turnover and 2.2 Results




CorrespondencePage

26

26

26

26

26

8

8

8

Annexes70

GRI 103: Management Approach

103-1 Explanation of the Material Topic and its BorderThis document has sought to continue the presentation of the topics that have been reported by Secil, as well as the reporting topics which Decree-Law No. 89/2017 must report.Secil has an extended process of sounding out its stakeholders under way, involving the different geographical areas in which it is present, in order to identify the material topics that will guide the management and sustainability report of the company. The company's next Sustainability Report will already be based on the material topics identified.

103-2 Management approach and its componentsThe management approach and its components are presented throughout the report in the chapter where the information on the topic in question can be found.

103-3 Evaluation of the management approachSecil regularly monitors and evaluates the indicators associated with each topic. To evaluate the effectiveness of its management, the company also relies on the feedback of its stakeholders, benchmarking analysis and, whenever available, on external performance ratings.

Note | The information regarding the Management Approach mentioned above is valid for all reported topics. The table below only indicates the pages where the detailed content of the management Approach to each topic can be found.


103-1 Explanation of the Material Topic and its Border

103-2 The management approach and its components

103-3 Evaluation of the management approach

GRI 201:EconomicPerformance

201-1 Direct economic value generated and distributed

201-2 Financial implications, risks and opportunities due to climate changeThe integration of the cement industry into the European Emissions Trading System (ETS) has simultaneously created risks and opportunities for companies in this sector. The efficient management of CO2 emissions that Secil has been carrying out, by increasing the use of alternative fuels and reducing the percentage of clinker included in the cement, has enabled it to meet its limits and make emission management more flexible.

2016thousands of Euro) 2017

Direct Economic Value GeneratedIncomeDirect Economic Value DistributedOperating costs Salaries and employee benefitsCapital provider paymentsPayments to the StateInvestments in the communityCumulative Economic Value

471 530471 530782 661691 22082 476

-598 0231 000

-311 131

499 527499 527797 236710 201

87 611-17

-1 5601 000

-297 708

Standard Indicator/Response

Economic Performance

Standard Indicator/Response LegalCorrespondence

Location

Specific Content

12-1426

12-14

70

Annexes 71


Anti-corruption

GRI 205: Anti-corruption

205-1 Operations subject to corruption risk assessmentCorruption risk assessments were undertaken at 50% of existing operations in Portugal.




CSC | Article 508-G, Paragraph Nº 2, item (b)

CSC | Article 508-G, Paragraph Nº 2, item c)


201-3 Obligations regarding defined benefit plans and other retirement plansThe Secil Group has a Defined Benefit Pension Plan (PBD) and another Defined Contribution Plan (PCD) applicable to some of the companies with differentiated conditions.

Amount underwritten by the company for pension funds

201-4 Financial support received from the government.

The amount received mainly relates to the SIFIDE (R&D tax credit) system, to the amount of € 6,154,000. The remainder are community grants for investment projects.


Location

205-2 Communication and training in anti-corruption policies and proceduresAnti-corruption policies were communicated to all employees in Brazil and Portugal. In Brazil, training sessions were also carried out in anti-corruption policies, covering all employees.

205-3 Confirmed cases of corruption and measures takenThere were no confirmed cases of corruption during the reporting period.

22-2326

22-23

70

2016 2017

€ 24 939 € 22 953

Total amount of support received from the government

2017

€ 6 583 339

Annexes72

Note | The information presented does not include Secil's operations in Cape Verde. The size of the operation in this country is irrelevant when compared to the other geographical areas presented.





GRI 302: Energy

Compulsory response topic through Decree-Law no. 89/2017 for which Secil does not have a Management Approach, responding only to the associated GRI indicator.

01-1 Total consumption of materials used by weight or volume

2016

2016

(tonne) 2017

2017

AngolaBrazilLebanonPortugalTunisiaTotal

Total

151 6001 978 7771 637 5725 897 3561 723 212

11 388 517

12 720 160

157 0252 200 8901 806 0846 480 5221 955 978

12 600 499

13 475 620

Materials

Environmental Performance

Energy




302-1 Energy consumption within the organization

CSC | Article 508-G, Paragraph Nº 2, item b) and item c)






Location

2646-49

46-49

70

Annexes 73


The remaining geographical areas do not use recycled and reused water.




GRI 303: Water

Water

Biodiversity







304-1 Operational facilities owned, leased, managed, or in close proximity to protected areas, or in areas with considerable biodiversity value outside protected areas.The Secil Group has an operational aggregate extraction facility of 0.17 km² inside the Serra da Arrábida Natural Park (Portugal). In Tunisia there is also an operational aggregate extraction facility, of 3.1 km², inside a protected area.

304-3 Habitats protected or recoveredSecil - Tunisia was involved in the protection and recovery of a habitat, in partnership with the local community and Universities, in which certain species of fox, wild rabbit, reptiles and birds were identified. An Environmental Impact Study was carried out prior to the beginning of the aggregate extraction and restoration of the habitat will be carried out after the extraction work is completed.

303-1 Total water consumption by source

303-3 Recycled and reused water

2016

2016

(tonne) 2017

2017

Surface water (m3)Water from wells (m3)Rainwater (m3)Public water consumption(m3)Total water consumption (m3)

BrazilLebanonPortugalTotal

106 2391 504 839

9 97548 831

1.669.884

51%31%77%14%

108 2801 679 111

4 44642 405

1.834.242

52%31%77%13%




CSC | Article 508-G, Paragraph Nº 2,item (b)

CSC | Article 508-G, Paragraph Nº 2,item c)




Location

26 e 51

2652-55

51

52-55

70

70

Annexes74


Location

Note | The information presented does not include Secil's operations in Cape Verde. The size of the operation in this country is irrelevant when compared to the other geographical areas presented. Information regarding Secil's operations in Angola was not available.

Note | The information presented does not include Secil's operations in Cape Verde. The size of the operation in this country is irrelevant when compared to the other geographical areas presented. Information regarding Secil's operations in Angola was not available.

Note | In Lebanon and Tunisia, employees of subsidiary companies for materials were not accounted for.


GRI 305: Emissions 2016 2016

2016

(t CO2e)

(Kg CO2/t Clinker)

2017

2017

Total

Total

3 788 166

835,5

4 051 204

848,4

Emissions




305-1 Direct emissions of GHGs (Scope 1)

2016(tonne) 2017

NOxSOxParticles

5 6221 046

66

5 0181 345

20

305-4 Intensity of GHG emissions

305-7 Emissions of nitrogen oxides (NOx), sulfur oxides (SOx) and other significant atmospheric emissions


GRI 401: Employment


401-1 Hiring new Employees and Employee turnover

Incoming Outgoing<30

68,2% 59,6%

<30>50

4,3% 18,9%

>5030-50

25,7% 26,1%

30-50

Incoming and outgoing rates, by age group

Total of incoming and outgoing rates

Incoming and outgoing rates, by gender

MenWomen

21,0%31,9%

22,3%

25,4%38,5%

27,0%

Employment

Social Performance








2650-51

50-51

70

Annexes 75



GRI 402: Labour Relations

GRI 403: Health and Safety at Work

Labour Relations

Health and Safety at Work





402-1 Prior notification periods for operational changesNotwithstanding the existence of company agreements and collective bargaining agreements that may refer to longer periods, all companies in the group comply with legal requirements in this regard.

403-2 Types and rates of injuries, occupational illnesses, days lost, absenteeism and number of work-related deathsThere was 1 death in 2016 and 1 death in 2017. Both cases were indirect employees in the Secil operation in Lebanon.

2016

2016

2016

GLOBAL Frequency Index

Nº Accidents with days Lost (direct employees)

Nº Accidents with days Lost (indirect employees)

2017

2017

2017

AngolaBrazilCape VerdeTunisiaLebanonPortugal TOTAL



27,21,70,0

17,213,48,79,2

1240

20201571

020

110

2235

4,90,70,0

10,915,66,64,8

240

13241154

02090

1930

CSC | Article 508-G, Paragraph Nº 2,item b) and item b)






Location

2632-41

32-41

70

Annexes76


GRI 404: Training and Education

Training and Education




404-1 Average annual hours of training per employee

2016

2016

2016

Nº of Lost Days(direct employees)

Nº Lost Days(indirect employees

2017

2017

2017



Board of DirectorsManagersMembers of senior managementMiddle ranking StaffPerformersTotal

15920

0691134533

1 537

0156

0283

0833

1 272

NDNDNDNDND5,7

23106

0381319381

1 210

0190

2670

7461 032

133,132,114,211,54,38,8

2016GLOBAL Severity Rate 2017


360,650,50,0

539,690,0

321,7243,2

56,914,10,0

320,4207,4247,6128,2

403-3 Workers at high risk or incidence of occupational diseasesThe industrial activity of the companies in the Secil Group has associated with it a set of tasks that involve high risk and, sometimes, incidences of occupational diseases. Risk assessment and monitoring programmes have been developed with the implementation of preventive and corrective actions in the various industrial units.

Note | In Lebanon and Tunisia, employees of subsidiary companies for materials were not accounted for. Information regarding Secil's operations in Brazil and Cape Verde was not available. The data for 2016 was not separated into professional categories in the most significant geographical areas.






Location

26, 41-43

41-43

70

Annexes 77

404-3 Percentage of employees who regularly receive performance and career development reviews

2017

Board of DirectorsManagersMembers of senior managementMiddle ranking StaffPerformersTotal

4%67%82%81%78%77%

Note | In Lebanon and Tunisia, employees of subsidiary companies for materials were not accounted for. Information regarding Secil's operations in Brazil and Cape Verde was not available.The data for 2016 was not separated into professional categories in the most significant geographical areas.

Note: In Lebanon and Tunisia, employees of subsidiary companies for materials were not accounted for.



GRI 405: Diversity and Equal Opportunities

GRI 406: Non-Discrimination

Diversity and Equal Opportunities

Non-Discrimination







405-1 Diversity in governance bodies and Employees

406-1 Incidents of discrimination and corrective action takenNo incidents of discrimination were recorded.

AGEGENDERMen Women <30 >5030-50

Professional Categories

Board of Directors Managers Members of senior management Middle ranking Staff PerformersTOTAL

93%64%42%18%38%35%

7%36%50%62%52%53%

0%0%8%

19%10%11%

0%14%15%24%

9%13%

100%86%85%76%91%87%









Location

2643-44

26 e 43

43-44

43

70

70

Annexes78





Freedom of Association and Collective Bargaining

Child labour

Forced or Slave Labour

Security Practices











407-Operations and suppliers where freedom of association and collective bargaining may be at riskThe risk in question has not been identified in any operation or supplier.

408-1 Operations and suppliers where there is a significant risk of incidents of child labourThe risk in question has not been identified in any operation or supplier.

410-1 Safety personnel trained in human rights policies and proceduresThe safety of the various facilities is ensured by private safety companies, which address the issue of human rights in training their employees.

410-1 Safety personnel trained in human rights policies and proceduresThe safety of the various facilities is ensured by private safety companies, which address the issue of human rights in training their employees.

GRI 407: Freedom of Association and Collective Bargaining

GRI 408: Child labour

GRI 409: Forced or Slave Labour

GRI 410: Security Practices





CSC | Article 508-G, Paragraph Nº 2,item c)








Location

25-26

26

70

25-26

25

70

25-26

25

70

Annexes 79





Human Rights Assessment

Local Communities

Social Evaluation of Suppliers

Public Policies








412-1 Operations subject to analysis or assessment of impacts on human rightsOnly Secil's operations in Brazil were subject to human rights impact assessments.

412-2 Training of Employees in human rights policies and proceduresNo training was carried out related to this topic.

413-1 Operations engaging the local community, impact assessments, and development programmes

414-1 New suppliers selected based on social criteriaThe supplier selection and evaluation process does not include social criteria, but contracts include clauses referring to respect for human rights.

415-1 Political contributionsIn the Secil Group, the only contribution was made through its operation in Angola.

GRI 412: Human Rights Assessment

GRI 413: CommunitiesPlaces

GRI 414: Social Evaluation of Suppliers

GRI 415: Public Policies













Location

GRI 416:Customer Health and Safety

Customer Health and Safety

No non-conformities were recorded.

25-26

25

70

26, 56-61

56-61

70

Technical Datasheet80

DL89 (Decree-Law no. 89/2017 of 28 July) CSC (Commercial Companies Code) | Amendments introduced by Decree-Law no. 89/2017 of 28 July CVM (Securities Code) | Amendments introduced by Decree-Law No 89/2017 of 28 July RBD (Report of the Board of Directors)

TECHNICAL DATASHEETDevelopment and Coordination:Communication and Sustainability Office

Technical Support:BSD Consulting

Design and Pagination:Santa Fé Orange

Documents

CONTENTSABOUT THIS REPORT This document is the Sustainability Report by Secil for the 2016-2017 biennium. The Report was drawn up based on the Global Reporting Initiative (GRI) Guidelines