MASHINIi

HEIDELBERG MATERIALS.

HEI.XETRA | Manufacture of cement, lime and plaster

Heidelberg Materials AG, formerly HeidelbergCement AG, is a leading global manufacturer of building materials. The company's primary products include cement, aggregates (crushed rock, gravel, and sand), ready-mixed concrete, and asphalt. Heidelberg Materials operates integrated cement plants, grindi...Show More

Ethical Profile

Mixed.

Heidelberg Materials faces significant ethical scrutiny. A €161.4 million fine was levied in 2013 for cartel activities. Critics highlight West Bank operations, where subsidiary Hanson Israel reportedly paid €3.2 million in royalties to Israel's Civil Administration in 2015, raising resource exploitation concerns. Mining projects in Indonesia and Australia also face controversy, allegedly threatening Indigenous communities and sacred sites, while an Indiana facility reported significant toxic releases, violating Clean Air/Water Acts. Conversely, Heidelberg Materials commits to human rights and ethical sourcing; 90% of supplier contracts enforce ethical clauses. Targets include a 95% reduction in Scope 1 and 2 emissions by 2050; 35% of 2023 revenue came from sustainable products like evoZero® cement. Biodiversity efforts dedicate 15% of quarry areas to nature.

Value Scores

Better Health for All-20
-100100
Fair Money & Economic Opportunity0
-100100
Fair Pay & Worker Respect0
-100100
Fair Trade & Ethical Sourcing0
-100100
Honest & Fair Business-10
-100100
Kind to Animals0
-100100
No War, No Weapons-10
-100100
Planet-Friendly Business-20
-100100
Respect for Cultures & Communities-60
-100100
Safe & Smart Tech0
-100100
Zero Waste & Sustainable Products-30
-100100

Better Health for All

-20

Heidelberg Materials' operations have resulted in significant negative health externalities, with its Mitchell, Indiana facility reporting toxic releases of 1,660.05 lbs of lead compounds and 33.51 lbs of mercury

1
, leading to $119,469 in penalties for Clean Air and Water Act violations
2
. The company has undertaken mitigation efforts, achieving an 80% reduction in dust emissions in Egypt by 2020
3
, which improved air quality
4
. The company provides some practical support for mental health through employee assistance programs and mental health initiatives for its workforce
5
. Additionally, it offers comprehensive health benefits to employees, including vaccinations, fitness group access, and health checks
6
. Heidelberg Materials also conducted a health camp in India, providing medical care, check-ups, and free medicines to 224 individuals, including women, children, and the elderly
7
. The company's business model does not involve health-related patents, food products, addiction potential, or clinical trials.

Fair Money & Economic Opportunity

0

Heidelberg Materials is a manufacturer of building materials, not a financial institution. The company does not offer lending, insurance, or deposit services to consumers. Therefore, the KPIs under the 'Fair Money & Economic Opportunity' value, which are designed to assess financial institutions' direct provision of financial services, are not applicable. While the company has a Green Finance Framework (2024) for its own projects

1
, promotes responsible procurement practices that support diverse suppliers (2023)
2
, and its sustainability initiatives may create jobs (2023)
3
, these activities do not involve consumer financial products or services as defined by the rubric's KPIs.

Fair Pay & Worker Respect

0

No specific, quantitative data points were provided in the articles for any of the KPIs under Fair Pay & Worker Respect. While articles mention safety-related offenses

1
, employment-related offenses
2
, and labor disputes
3
, they do not provide the specific metrics required by the rubric, such as a Total Recordable Incident Rate (TRIR), a count of substantiated labor violations within the last three years, or percentages for living wage coverage, collective bargaining, or insecure contracts. Therefore, no KPIs can be scored based on the given evidence.

Fair Trade & Ethical Sourcing

0

Heidelberg Materials UK achieved BES 6001 certification across its business in January 2024, a standard for responsible sourcing of construction products covering environmental and social issues

1
. Additionally, Heidelberg Materials Benelux secured CSC 'Platinum' and 'Gold' certifications for several aggregates plants in 2024, reflecting dedication to sustainable practices
2
. The company collaborates with over 130,000 suppliers in more than 50 countries, with 90% of global expenditures sourced locally
3
. A Supplier Code of Conduct is in place, obligating suppliers to comply with fundamental principles of the International Labour Organization and applicable supply chain laws, ensuring human, labor, and environmental rights are non-negotiable
4
. Heidelberg Materials has implemented SAP Ariba solutions to harmonize procurement processes, manage its €15 billion annual spend, and enhance transparency across its supplier network
5
. In 2023, the Supplier Sustainability Performance Rate was reported at 53%, with a target to reach 80% by 2030
6
.

Honest & Fair Business

-10

Heidelberg Materials incurred approximately $1.25 million in ethics-related regulatory fines between 2023 and 2025, primarily for workplace safety, health, and environmental violations.

1
The company has a comprehensive, Group-wide Anti-Corruption Policy, issued in September 2023, which applies to all employees and companies.
2
It includes regular corruption risk assessments, training for employees at least once every two years, business partner review processes, M&A due diligence, and an external audit of its Antitrust Compliance Programme every three years.
3
A global 'SpeakUp' whistle-blower system is in place, allowing anonymous reporting and promising protection from retaliation.
4
This system aims to provide initial feedback within 7 days and process reports within a maximum of 90 days.
5

Kind to Animals

0

Heidelberg Materials partners with BirdLife International to enhance biodiversity and habitat restoration in quarries, having implemented over 40 projects worldwide

1
. Since 2012, the company has initiated over 450 biodiversity research and conservation projects through its Quarry Life Award
2
. It published a handbook on biodiversity management and habitat creation for sustainable raw material extraction
3
. Specific conservation efforts include creating alternative nesting habitats near quarries, which successfully attracted over 500 sand martins in ten days
4
. The company supports the conservation of endangered species like the sand martin and Eurasian otter
5
and engages in educational programs about bird migration
6
. Heidelberg Materials aims for all active quarries to contribute to being nature positive by 2030
7
, dedicating 15% of quarry areas to nature
8
.

No War, No Weapons

-10

Heidelberg Materials states it is not involved in arms manufacturing, indicating zero revenue from defense contracts, no development or sale of dual-use products, no defense business for board oversight, and no defense assets requiring divestment or exposure to controversial weapons.

1
However, its subsidiary Hanson Israel operates in the West Bank, which has been criticized for exploiting Palestinian natural resources and contributing to illegal settlements.
2
In 2015, royalties paid included €3.2 million to Israel's Civil Administration and €430,000 to the Samaria Regional Council.
3
This involvement raises ethical concerns related to war and conflict, highlighting major gaps in the company's stated alignment with the UN Guiding Principles for Business and Human Rights.

Planet-Friendly Business

-20

Heidelberg Materials has SBTi-validated carbon reduction targets. In January 2025, its 2050 net-zero GHG emissions targets across its value chain were validated by SBTi as consistent with the Corporate Net Zero Standard and in line with a 1.5°C trajectory.

1
These targets include a 95% reduction in gross Scope 1 and 2 GHG emissions per tonne of cementitious material and a 90% reduction in absolute Scope 3 GHG emissions from a 2020 base year.
2
Additionally, in February 2023, its 2030 carbon reduction targets were validated under the 1.5°C framework
3
, committing to a 26.7% reduction in Scope 1 and 2 GHG emissions per tonne of cementitious material
4
and a 25% reduction in absolute Scope 3 GHG emissions from purchased goods and services by 2030
5
.

Respect for Cultures & Communities

-60

Heidelberg Materials faces significant opposition from local and Indigenous communities regarding several projects. In Central Java, Indonesia, a proposed limestone mine and cement plant have drawn opposition due to fears of harm to livelihoods and sacred Samin community sites

1
. A formal complaint in 2023 led to the German government requesting disclosure of impact assessments, indicating a reactive response to community concerns
2
. Similar opposition was reported in the Kendeng Mountains, Indonesia, from local indigenous groups like Sedulur Kendeng, citing risks to livelihoods, water resources, and sacred sites
3
. In Swan Valley, Western Australia, a quarry expansion is opposed due to threats to ancient Aboriginal sites, including the sacred Owl Stone
4
. These instances demonstrate a lack of social license for these operations and a failure to protect cultural and heritage sites from the company's activities. In contrast, in 2023, the company hosted 'open doors' events in Italy, attracting 1,000 attendees and collaborating with 28 associations
5
, and conducted a health camp for 224 individuals in India
6
.

Safe & Smart Tech

0

Heidelberg Materials has implemented comprehensive data protection measures and privacy policies that detail the collection, processing, and storage of personal data, ensuring compliance with legal standards

1
. The company provides mechanisms for individuals to exercise their data protection rights, such as access, rectification, and deletion of personal data
2
. No documented incidents of unauthorized data use have been reported. Furthermore, a robust compliance program is in place, which includes a Code of Business Conduct, regular compliance risk assessments, and training programs to ensure adherence to ethical and legal standards
3
.

Zero Waste & Sustainable Products

-30

Heidelberg Materials has set a target for 50% of its revenue to come from sustainable products by 2030

1
, building on 35% achieved in 2023
2
. The company applies circular design principles to several product categories, exemplified by its global evoBuild® brand, which includes circular products, and the EcoBlock+ initiative in Lithuania that creates blocks from leftover concrete
3
. Products under the evoBuild® brand contain at least 30% recycled aggregates
4
. Furthermore, Heidelberg Materials has implemented multiple waste reduction initiatives, such as investing in the clean-tech start-up EnviCore
5
, expanding recycling operations in Seattle with a new site in Redmond and acquiring a recycling company in Woodinville in 2022
6
, and acquiring RWG Holding GmbH to process concrete demolition waste into recycled aggregates
7
.

Own HEIDELBERG MATERIALS?

Upload your portfolio and see how all your holdings score across 11 ethical dimensions.

Audit My Portfolio

AI-generated analysis based on publicly available data. Not financial advice. Ratings are expressions of opinion derived from automated models and may contain inaccuracies. See our Risk Disclosure for full details.