Environmental Accounting of Heidelberg Cement Company

3. Environmental Issue

Legal risks

-Hanson Asbestos-related and environmental damage

Some of Hanson participations in the US are exposed to particular legal risks and disputes relating to former activities. The most significant of these are asbestos-related claims, which, amongst other things, allege bodily injury and involve several American subsidiaries. Products containing asbestos were manufactured in the period from 1973 to 1984, and thus before these companies belonged to the Janson Group and to HeidelbergCement. In the US, these damage claims are being handled and intensively managed by a team of in-house lawyers in collaboration with insurers and external consultants. The dispute is likely to continue for a few more years because of the complexity of the cases and the peculiarities of the American

-Cartel proceedings

In the cartel proceedings initiated in 2002 against German cement companies, the Dusseldorf High Court imposed a fine against HeidelbergCement in June 2009; an appeal against the fine has been lodged with the Federal Supreme Court in connection with the breach of various procedural and material regulations. A decision is yet to be made on this matter. The proceedings before the Federal Supreme Court will not result in any increase in the fine. No decision has yet been made regarding the action for damages brought by the Belgian company Cartel Damage Claims SA before the District Court of Dusseldorf, which is based on allegedly inflated cement prices as the result of a cartel between 1993 and 2002. Even after the decision of the Dusseldorf High Court, HeidelbergCement believes that it still has a chance of defending itself successfully against the claims. The proceedings were continued with the issuing of questionnaires at the end of September 2009 and additional enquiris in 2010 and 2011, which HeidelbergCement answered by the respective deadlines. In December 2010, the European Commision informed HeidelbergCement that in this connection, proceedings had commenced in several EA countries on the basis of suspicious concerning the violation of EU competition legislation.

Sustainability

Sustainable corporate governance means ensuring a balance between making profits and securing future viability. We strive to act in a socially and ecologically responsible way. We take into account the effects of our entrepreneurial activity on the environment and society, and thereby reduce the risks for our business. Sustainability strategy is thus derived from our corporate