"Our contribution to sustainable development is at the very heart of our ambitions" As we grow, we continue to work to strengthen our commitment to sustainable development. We know that to build on our success in the future, we must maximize the benefits and reduce the impacts of our business on people, communities, business partners, and the environment. That is why we continually revise our sustainability strategy to consolidate our efforts across regions and further integrate our worldwide approach.

During 2007, our performance based on the Cement Sustainability Initiative's (CSI) indicators was largely positive. Carbon dioxide emissions per ton of cement decreased, despite a slight rise in the total. For the first time, independent consultants audited our CO₂ emissions. We increased our use of alternative fuels to reduce our reliance on primary fuels, and we increased the number of sites with local impact plans in place. We exceeded our targets for the use of alternative raw materials in our cement, and for the number of active cement sites with quarry rehabilitation plans. We will now work to achieve our longer-term targets to stretch ourselves further.

Challenges remain, and there is much more to do. Safety is our priority, so we must raise standards for our contractors and our employees. Our goal is zero fatalities - anything less is unacceptable. Quick and effective responses are required to prevent irreversible climate change. We must identify and deploy more ways to cut greenhouse gases from our operations and develop products and provide services which promote sustainable construction.

While the acquisition of Rinker has strengthened our portfolio and our global position, it has also greatly increased our environmental responsibilities. We are developing ways to lessen the impact of our expanded quarrying operations on local communities and wildlife. We signed a partnership agreement with the conservation organization, BirdLife International. This collaboration will help us build on our efforts to protect biodiversity and create healthy, natural habitats in and around our sites.

We will continue to develop our information systems, which are essential to improving our performance. Accurate data helps us to track our progress and allows our stakeholders to compare our results with others. Upgrading our systems to capture performance data for our rapidly expanding non-cement businesses is a priority.

We invite you to learn more about how we are addressing sustainability issues on this website and in our latest Sustainable Development Report.

Sincerely,

Lorenzo H. Zambrano
Chairman of the Board and Chief
Executive Officer