Our Future
in Action
ACCELERATING A S USTAINABLE WORLD
2024 Integrated Report
2
Cemex 2024 Integrated Report
Table of Contents
Our Company
Letter to Our Stakeholders
3
Cemex Overview
7
Noteworthy Recognitions
9
Financial and Sustainability Highlights
10
Our Sustainability Targets
11
Our Strategy
12
Cemex Value Creation Model
13
Health and Safety: Our #1 Value and Priority
14
Stakeholder Alignment: Placing People at
the Center of Every Business Decision
21
Digital Forward: Achieving 100% Digital
Adoption Across Our Value Chain
22
Financial Performance
24
2024 Financial Highlights
25
Continuously Advancing Toward Our
Strategic Priorities
26
Sustainable Finance
28
Consolidated Results
29
Environmental Excellence
31
Future in Action: Achieving Decarbonization
Targets Toward a Net-Zero Future
32
Sustainable Products and Solutions:
Expanding the Sustainability Features of
Our Products
35
Decarbonizing Our Operations: Moving
Rapidly to Achieve Our Ambitious Goals
38
Circular Economy: Repurposing Materials
to Minimize Our Environmental Impact
44
Water, Biodiversity, and Air Quality:
Building a Nature-Positive Future
47
Innovation and Partnerships: Catalyzing
Innovation Across Our Business and Industry
54
Promoting a Green Economy: Using Our
Voices to Accelerate Action in Our Industry
59
Social Commitment: Accelerating Our
Responsibilities for a Just Transition
64
Stakeholder Engagement
66
Workforce Experience: Investing in Our
People to Unlock Their Potential
67
Customer Centricity: Driving a Superior
Customer Experience
76
Supplier Networks: Building Strong
Relationships, Fostering Mutual Value
80
Community Development: Engaging With
Communities to Deliver Transformative
Outcomes
83
Governance
92
Corporate Governance
93
Our Board of Directors
94
Executive Committee
106
Ethics and Compliance
111
Risk and Opportunity Management
117
Respect for Human Rights is Embedded
in Our Business
128
Appendix
133
Selected Consolidated Financial Information
134
Financial Information
136
Non-Financial Information
210
Scope and Boundaries of This Report
220
Cemex’s Materiality Assessment
222
Stakeholder Engagement
224
Governance
226
EU Taxonomy
230
GRI Content Index
235
International Sustainability Standards
Board (ISSB)
248
Sustainability Accounting Standards
Board Response (SASB)
250
Task Force on Climate-Related Financial
Disclosure Response (TCFD)
252
Terms We Use
270
Cautionary Statement Regarding
Forward-Looking Statements
272
Investor, Contact, and Feedback
Information
275
Dear Stakeholders,
Cemex continued to elevate its operational and strategic performance
in 2024. We delivered strong results, regained our investment-grade
rating, and advanced our decarbonization agenda in line with our 2030
goals. As we posted the second-strongest sales and operating EBITDA
in recent history, we also achieved the highest free cash flow after
maintenance capital expenditures since 20171. Our global workforce
executes daily with a relentless focus and unwavering commitment to
accelerate a sustainable world which includes a profitable future for
Cemex. In this year’s report, we take great pride in sharing our progress
and commitment to our future in action.
A Pivotal Year in Our Evolution
In 2024, we celebrated Cemex’s return to investment-grade rating by Standard & Poor’s
and Fitch. We also finished the year with our lowest leverage ratio since the outbreak
of the global financial crisis. This very important achievement recognizes the successful
execution of our strategy and consistent financial performance delivered over several
years. It also provides a runway to more aggressively pursue our growth strategy and
lay the foundation for a sustainable and progressive shareholder return program.
Through the announcement of US$2.2 billion in divestitures, we significantly rebalanced
our portfolio toward developed markets with more consistent and attractive growth
potential. Amidst significant foreign exchange volatility and volume headwinds, we
succeeded in maintaining full-year operating EBITDA margin with operating EBITDA
growth. This performance was supported by our pricing strategy, which outpaced
inflation in our business, as well as focusing attention on costs and optimizing production
with increases in operating efficiencies in key markets.
Letter to Our Stakeholders
1
Adjusting for the extraordinary payment of the Spanish tax fine.
2 Compared to our 2020 baseline.
3 Like-for-like, excluding discontinued operations in the Philippines, Guatemala, and the Dominican Republic.
Rogelio Zambrano
Chairman of the Board
of Directors
Fernando A. González
Chief Executive Officer
US$939M
net income,
a record level
in recent history
15% & 18%
cement Scope 1- and 2-specific CO2
emissions reduction, respectively,
a reduction that would have taken us
16 years to achieve historically 2,3
Contents
Our Company
• Letter to Our Stakeholders
Cemex Overview
Noteworthy Recognitions
Financial & Sustainability Highlights
Our Sustainability Targets
Our Strategy
Financial Performance
Environmental Excellence
Stakeholder Engagement
Governance
Appendix
3
Cemex 2024 Integrated Report
Our achievements are accomplished
alongside our prioritized commitment to
health and safety. As we continue striving to
achieve zero injuries, we remain a positive
industry benchmark in safety standards.
In 2024, our employee lost time injury (LTI)
frequency rate was 0.6,2 and we had zero
LTI incidents across 96% of our global
operations. These results provide both
motivation and clear evidence that our
continuous improvement commitment is
producing positive outcomes, yet we will not
be satisfied until we achieve zero injuries
across all our operations.
As we execute our daily operations safely,
we have an unwavering focus to deliver
superior customer experience that helps
our customers succeed, contributes to
building stronger communities, and is a
powerful differentiator for Cemex. In 2024,
we set a record net promoter score (NPS)
of 74. For the past four years, our NPS
has been above the industry benchmark
in customer satisfaction for business-to-
business companies. Leveraging digital
solutions as powerful enablers, we further
accelerated seamless customer experiences
and order adoptions through Cemex Go,
our global flagship omnichannel platform.
To create momentum for complete
digital adoption among our customers,
we launched the Cemex Go Acceleration
Program in the U.S. region, which resulted
in increased order adoption rates of 60%.
We are proud to maintain our industry
leadership as the only end-to-end solution
in the quote-to-cash process, and we plan
to expand the Acceleration Program to
all regions in 2025. Additionally, we were
the first in the industry to develop a sales
assistant powered by Generative Artificial
Intelligence. This allowed us to provide even
more personalized solutions to customers
while simultaneously offering us deeper
insights to anticipate future needs.
A Significant Year in Sustainability
In 2024, we continued to achieve aggressive
decarbonization targets toward a net-
zero future. Through our Future in Action
global climate action program, we remain a
benchmark for industry’s efforts to profitably
decarbonizing operations, optimizing the
use of natural resources and alternative
materials, expanding initiatives across
the entire value chain, promoting nature
conservation, and ensuring that our activities
have an increasingly positive social impact.
We were recognized as the industry’s
top-scoring company in the World
Benchmarking Alliance’s (WBA) 2024
Climate and Energy Benchmark.
Amidst 91 of the world’s most influential
aluminum, cement, and steel companies
which were measured based on their
emission targets and transition to a
lower-carbon future, Cemex achieved the
highest score in the overall ranking after
the WBA assessed the company’s climate
performance using industry-specific
Accelerate Climate Transition (ACT)
methodologies, as well as social and just
transition indicators.
2024 Highlights:
• Regained investment-grade rating
• Recognized significant portfolio
rebalancing from US$2.2 billion in
announced divestments
• Reached US$939 million in net income,
a record level in recent history
• Realized approximately US$344
million operating EBITDA contribution
from growth investment strategy
• Achieved a leverage ratio of 1.81x, the
lowest since the outbreak of the global
financial crisis
• Announced progressive shareholder
dividend program
• Awarded €157 million EU Innovation
Fund grant for CO2 capture at
Rüdersdorf plant in Germany which
is expected to become our first
net-zero plant
• Raised our net promoter score
to 74, setting another industry
benchmark and maintaining our
alignment with other well-regarded
customer-oriented companies
which further emphasizes our
customer centricity focus
• Ranked #1 by the World
Benchmarking Alliance among
91 companies in hard-to-abate
industries including steel and
aluminum, achieving the highest
climate transition score
• Reduced our cement Scope 1- and
2-specific CO2 emissions by 15% and
18%, respectively, a reduction that
would have taken us 16 years to
achieve historically1,3
74
Net promoter score,
a record high achieved
in 2024. For the past
four years, our NPS has
been above the industry
benchmark in customer
satisfaction for business-
to-business companies.
1
Compared to our 2020 baseline.
2 LTI is 0.5 when considering the full-year performance level,
including the periods of responsibility for discontinued
operations.
3. Like-for-like, excluding discontinued operations.
Contents
Our Company
• Letter to Our Stakeholders
Cemex Overview
Noteworthy Recognitions
Financial & Sustainability Highlights
Our Sustainability Targets
Our Strategy
Financial Performance
Environmental Excellence
Stakeholder Engagement
Governance
Appendix
4
Cemex 2024 Integrated Report
Contents
Our Company
• Letter to Our Stakeholders
Cemex Overview
Noteworthy Recognitions
Financial & Sustainability Highlights
Our Sustainability Targets
Our Strategy
Financial Performance
Environmental Excellence
Stakeholder Engagement
Governance
Appendix
5
Cemex 2024 Integrated Report
This year, we reduced our Scope 1 CO2
emissions by more than 2%, while maintaining
our 37% utilization of alternative fuels with
biomass content and further reducing our
clinker factor to 71.8%. These achievements
demonstrate that accomplishing great
things is possible through industry-supportive
advocacy and policies. In Europe, where
stable frameworks exist, our pace of
profitable decarbonization continues to lead
the industry. In fact, our alternative fuel
usage in Europe set an industry benchmark
where it exceeded 75% in the U.K., Germany,
and the Czech Republic, and it even reached
95% in Poland.
We also were awarded the prestigious
Net-Zero Industries Award by Mission
Innovation for our revolutionary
clinker decarbonization process
using concentrated solar power in
partnership with cleantech company
Synhelion, which is also one of our
venture capital investments.
In Germany, we are working to make our
Rüdersdorf plant our first and flagship
plant in our carbon capture, utilization,
and storage (CCUS) strategy. Achieving
neutrality requires further exploration
of new technologies, and this plant was
selected in 2024 to receive €157 million
from the European Union Innovation Fund
to capture 1.3 million metric tons of CO2 per
year making it Cemex’s first carbon-neutral
cement plant in the world by 2030.
For our decarbonization efforts to succeed,
we must transform customer demand
for accelerated adoption of sustainable
products. Our Vertua® low-carbon products
have gained rapid customer acceptance,
with low-carbon cement now accounting
for 63% of our consolidated cement volumes
and low-carbon concrete accounting for
55% of total concrete sales. Customer
acceptance for both Vertua® products is
running well ahead of our 2025 target of
greater than 50%. Our Vertua® products
are widely used along with other products
and solutions in notable global projects,
including construction of one of the tallest
skyscrapers in Miami, the development of
new infrastructure for NASA in Florida, the
Aquatics Centre and other venues for the
Summer 2024 Olympic Games in Paris, a
new power plant in Dubai, and the Bogotá
Metro in Colombia, among others.
As we take comprehensive actions to lead
the transition toward a circular economy
by eliminating waste, circulating materials
at their highest value, and promoting the
restoration of natural resources, we are
instilling circularity principles across our
operations. Through our regenerative use
of construction, demolition, and excavation
materials (CDEM) as well as municipal
and industrial waste, our industry can be a
powerful contributor to a circular economy.
For context, the world produces about
11 billion tons of waste annually, of which
about 35% is CDEM and 55% is municipal
and industrial waste. Rather than landfilling
this waste, our industry could potentially
repurpose about 35% of it as alternative
fuels, aggregates, and other materials in
our productions processes if supporting
codes and regulations are broadly
allowed for this possibility. Regenera,
our global waste management business,
continued leveraging our global expertise
in using industrial waste and byproducts
as sustainable substitutes in production
processes where supporting regulations
exist. In 2024, we managed 27 million tons
of waste and byproducts, which is roughly
equivalent to the municipal waste produced
annually in the U.K. In Germany, we
acquired a majority stake in the circularity
business of the HEIM Group with the annual
capacity to process 800,000 tons of
material. Regenera will convert this material
into aggregates for reuse in concrete
production, ultimately reintegrating them
into the construction value chain. In addition
to its recycling capabilities, this circularity
business operates the first plant to
permanently store biogenic CO2 in recycled
mineral waste in Germany. Additionally, we
became partners in The Ellen MacArthur
Foundation, the world’s leading circular
economy network. Integrating waste
materials as raw materials and alternative
fuels in production processes is a powerful
enabler to lower our carbon footprint
and address global challenges such as
biodiversity loss.
To ensure our operations have a positive
impact on nature and society, we continued
our work to optimize water usage and to
reduce freshwater withdrawals while also
minimizing our impact on air quality and
enhancing the biodiversity in and around
our quarries. In several cities in Mexico, for
example, we are producing 100% of our
concrete using water that is not suitable
for human or agricultural consumption.
At the national level, 60% of our concrete
production utilizes this same practice, which is
being further replicated in other global areas.
EU Innovation Fund grant
€157 million awarded for CO2 capture at Rüdersdorf
plant in Germany which is expected to become our
first net-zero plant
Contents
Our Company
• Letter to Our Stakeholders
Cemex Overview
Noteworthy Recognitions
Financial & Sustainability Highlights
Our Sustainability Targets
Our Strategy
Financial Performance
Environmental Excellence
Stakeholder Engagement
Governance
Appendix
6
Cemex 2024 Integrated Report
Such innovative efforts are in our DNA,
and we continued our research and
development efforts with our portfolio
of more than 100 projects designed to
help us achieve our climate goals. We
collaborate with organizations to develop,
source, and scale innovative solutions
that will accelerate our transition to a
carbon-neutral future. We currently have
280 projects in our pipeline focusing on
decarbonization, sustainable construction,
and digitalization. Cemex Ventures
continues to develop strategic business
opportunities through collaboration,
partnership, and investment in disruptive
companies, and has become one of the
top investors, opinion leaders, and key
contributors in the construction industry’s
entrepreneurial ecosystem.
Accelerating regulations and policies to
further advance climate action globally is
critical to achieve our goals. We continue
to collaborate with industry associations
and other partners to help drive and
sustain these necessary changes for a
net-zero world. Our CEO continued to
serve as president of the Global Cement
and Concrete Association (GCCA)
this year, and Cemex held nearly 200
leadership roles in global industry groups.
As we are nearly midway in this decade
to deliver, public-private collaboration
is paramount, now more than ever, to
unlock the industry’s full potential in a
carbon-neutral society.
At Cemex, we also recognize the power
of going beyond traditional social
responsibility in support of our climate
action goals. Through collaboration, we
scale our social impact contributions to
promote a sustainable future for our local
communities and facilitate a just transition
to a low-carbon economy. Leveraging our
business strengths, we make significant
contributions to society through our social
responsibility program and our social
investments. This year, we positively
impacted nearly 30 million community
partners across our operations. As we
make a positive and lasting difference in
the communities where we operate, we
also empower communities to prepare for,
respond to, and recover from challenges
while promoting long-term sustainability.
While 2024 saw significant climate-related
disasters, we trained approximately 8,000
people in emergency preparedness,
executed four employee-driven giving
campaigns following hurricanes and
flooding in the U.S., Mexico, and Spain,
and trained more than 18,000 people in
road safety.
Ultimately, we have made significant
progress toward our ambitious
2030 goals and remain on track to
become a net-zero carbon emissions
company by 2050.
A New Era of Sustainable Growth
The strategic, operational, and financial
pillars of Cemex are solid. Now with
a financially strong foundation, we
have adjusted our global structure and
strategy to achieve a higher growth rate.
We remain steadfast in our dedication
to execute our strategy to deliver this
growth as well as continued profitable
progress on our decarbonization pathway.
Our ability to successfully navigate the
headwinds of 2024 is underscored by our
robust and consistent performance. As
Cemex transitions its leadership in 2025,
we remain firmly committed to you, our
stakeholders, to continue the great work
we have done to keep this company at
the forefront of the building materials
industry and create even more lasting
value for you. We are excited about this
new era. On behalf of Cemex’s Board of
Directors, our management team, and
our employees, we thank you for your
continued confidence in Cemex.
Sincerely,
Rogelio Zambrano Lozano
Chairman, Board of Directors
Fernando A. González
Chief Executive Officer
+280
projects currently in
our pipeline focusing
on decarbonization,
sustainable construction,
and digitalization
Contents
Our Company
Letter to Our Stakeholders
• Cemex Overview
Noteworthy Recognitions
Financial & Sustainability Highlights
Our Sustainability Targets
Our Strategy
Financial Performance
Environmental Excellence
Stakeholder Engagement
Governance
Appendix
7
Cemex 2024 Integrated Report
Cemex Overview
Industry-leading global construction materials company.
100-plus years strong.
Our Profile
Cemex is an industry-leading global construction
materials and solutions company that drives
innovation to help the world reach the next frontier
of sustainable living. With our 100-plus-year
heritage, we are committed to achieving carbon
neutrality through relentless innovation and industry-
leading research and development. We stand at the
forefront of the circular economy in the construction
value chain and pioneer ways to increase the use
of waste and residues as alternative raw materials
and fuels in our operations. With a digitally enabled
customer experience, we offer cement, ready-
mix concrete, aggregates, and urbanization
solutions in growing markets around the world.
Committed to carbon
neutrality by
2050
Started doing
business in
1906
56
cement and
grinding plants
1,174
ready-mix
concrete plants
225
aggregate sites
US$3.1
billion operating EBITDA
235
land distribution
centers
US$16.2
billion global sales
Cemex at a Glance 2024
58
marine
terminals
+44,000
employees worldwide
Photo © Mehdi Bahmed/Concept Photography Berlin
Our Business
Our Global Footprint
Urbanization Solutions – Complementary solutions
designed to meet the opportunities of sustainable
urbanization through performance materials,
industrialized construction, waste management,
and other related services.
Cement – A binding agent, when mixed with
aggregates and water, produces either ready-mix
concrete or mortar.
56
cement and grinding
plants
81
million metric tons
installed production
capacity
Ready-Mix Concrete – A combination of cement,
aggregates, admixtures, and water.
1,174
plants
44
million cubic meters
of annual
sales volume
Aggregates – Inert granular materials, such as stone,
sand, and gravel, obtained through land-based
resources or dredging marine deposits.
225
sites
136
million tons of
annual sales
volume
EMEA – Europe,
Middle East & Africa
• US$4.6B sales
• +11,300 employees
• 20 cement and grinding plants
• 578 ready-mix plants
• 146 aggregates quarries
United States
• US$5.2B sales
• +9,200 employees
• 10 cement plants
• 290 ready-mix plants
• 47 aggregates quarries
Mexico
• US$4.9B sales
• +17,900 employees
• 15 cement plants
• 260 ready-mix plants
• 15 aggregates quarries
SCA&C – South, Central
America & Caribbean
• US$1.2B sales
• +4,500 employees
• 11 cement and grinding plants
• 46 ready-mix plants
• 17 aggregates quarries
Others
• +1,500 employees
Includes employees performing corporate
functions in different locations.
Contents
Our Company
Letter to Our Stakeholders
• Cemex Overview
Noteworthy Recognitions
Financial & Sustainability Highlights
Our Sustainability Targets
Our Strategy
Financial Performance
Environmental Excellence
Stakeholder Engagement
Governance
Appendix
8
Cemex 2024 Integrated Report
9
Cemex 2024 Integrated Report
Contents
Our Company
Letter to Our Stakeholders
Cemex Overview
• Noteworthy Recognitions
Financial & Sustainability Highlights
Our Sustainability Targets
Our Strategy
Financial Performance
Environmental Excellence
Stakeholder Engagement
Governance
Appendix
Noteworthy Recognitions
Since our humble beginnings in the early 1900s, Cemex has led the way
in accelerating a sustainable world. We are proud to be recognized externally
for our commitments toward the next frontier of sustainable living.
World Benchmark Alliance
2024 Climate and Energy
Benchmark
highest climate transition score
among 91 aluminum, cement,
and steel companies
Fortune Change the
World List
ranked 24 of 52 companies,
fourth year on the list
Wildlife Habitat Council
Excellence in corporate
conservation award
for four projects across the
U.S. and Mexico
U.S. Environmental Protection Agency
ENERGY STAR® Partner of the Year:
Sustained Excellence
sixth consecutive year
Mission Innovation
Net-Zero Industries Award
revolutionary clinker decarbonization
process using concentrated solar power
10
Cemex 2024 Integrated Report
Contents
Our Company
Letter to Our Stakeholders
Cemex Overview
Noteworthy Recognitions
• Financial & Sustainability Highlights
Our Sustainability Targets
Our Strategy
Financial Performance
Environmental Excellence
Stakeholder Engagement
Governance
Appendix
Financial and Sustainability Highlights
Our Future in Action: Accelerating a Sustainable World
2024 Progress
Financial Performance
We are delivering solid financial
results as we advance our
sustainability goals.
Environmental Excellence
We are rapidly transforming our
business through climate action,
circularity, innovation, and natural
resource management to become
a net-zero carbon company.
Stakeholder Engagement
We place people at the center of
every business decision we make
so they are empowered to build a
more sustainable world.
Governance
We embrace high ethical
standards and best practices
in our corporate governance
model, upholding our commitment
to integrity, accountability, and
responsible decision-making.
Financial Performance
Environmental Excellence
Stakeholder Engagement
Governance
• Regained investment-grade
rating from Standard & Poor’s
and Fitch
• US$16.2 billion global sales
• US$3.1 billion operating
EBITDA
• 19.0% operating EBITDA
margin
• US$2.2 billion in announced
divestments leading to
significant portfolio rebalancing
• 1.81x leverage ratio, our lowest
since 2007
• ~US$344 million operating
EBITDA contribution from
growth investment strategy
• 63% total cement sales came
from Vertua® products
• 55% total ready-mix concrete
sales came from Vertua®
products
• Reduced cement Scope 1- and
2-specific CO2 emissions by
15% and 18%, respectively1
• 27 million tons waste
material repurposed through
Regenera
• +13 million tons of
construction, demolition,
and excavation materials
processed in 2024
• 4.9 million cubic meters of
freshwater saved during 2024
• 100% active quarries with
rehabilitation plans
• +60 partners developing
industrial-scale net-zero CO2
solutions
• +280 projects in our
innovation portfolio
• 54 employee net promoter
score
• 23% senior leadership
positions are held by women
• 0.6 employee lost time injury
frequency rate2
• Zero lost time injury incidents
across 96% of our global
operations
• 74 net promoter score
• Nearly 30 million
community partners
• 60% small- to medium-sized
businesses in our supplier
network
• +26,000 employee training
hours completed to reinforce
Code of Ethics
• 100% of operations in high-
risk countries were audited
in 2024
• Doing What’s Right: ETHOS
in Action course launched to
reinforce Code of Ethics
• 86% of ethics and compliance
questions and concerns
received through ETHOSline
1
Compared to our 2020 baseline.
2 0.5 when considering the full-year performance
level, including the periods of responsibility for
discontinued operations
Contents
Our Company
Letter to Our Stakeholders
Cemex Overview
Noteworthy Recognitions
Financial & Sustainability Highlights
• Our Sustainability Targets
Our Strategy
Financial Performance
Environmental Excellence
Stakeholder Engagement
Governance
Appendix
Our Sustainability Targets
The United Nations Sustainable
Development Goals (SDGs) 9, 11,
12, and 13 represent our greatest
opportunity to leverage our portfolio
of products, services, and solutions
for creating profitable shared
value and contributing to the UN’s
Sustainable Development Agenda.
Our sustainability targets showcase
our strong commitment to building a
better world by addressing climate
change. We are passionate about
doing our part to help alleviate one
of the most significant challenges our
communities face today.
1
2024 figures do not include discontinued operations.
2 Target aligned with SBTi 1.5°C scenario.
3 We have implemented water action plans in 100% of
sites in extremely high water stressed areas.
4 Number of biodiversity action plans updated in line
with the scoping study carried out in 2021.
5 Critical sites updated in line with scoping study
carried out in 2021.
6 Individuals positively impacted from our social
initiatives since 1998.
7 2030 target is an annual target.
Focus Area
Focus Area
Key Performance Indicator
Key Performance Indicator
2024
20241
2030
2030
Target
Target
Link to priority
Link to priority
SDGs
SDGs
Health and Safety
Employee fatalities (No.)
1
0
9, 11
Employee lost time injuries (LTI) frequency rate
0.6
0
9, 11
Customer Centricity
Net promoter score (NPS)
74
70
9
Climate Action
Scope 1 specific net CO2 emissions per ton of cementitious product
(kgCO2/cementitious)2
526
<430
9, 11, 13
Clinker factor (cementitious) (%)
71.8
68
9, 11, 13
Alternative fuels rate (%)
37
55
9, 11, 13
Scope 2-specific CO2 emissions per ton of cementitious product (kgCO2/cementitious)
44.7
24
9, 11, 13
Circular Economy
Total waste-derived sources managed (million tons)
27
41
9, 11, 12
Water
Implementation of water action plans in sites located in water-stressed areas (%)3
40
100
12
Reduction in specific freshwater withdrawal in cementitious (%)
9.9
20
12
Reduction in specific freshwater withdrawal in aggregates (%)
1.2
15
12
Reduction in specific freshwater withdrawal in concrete (%)
16.9
10
12
Biodiversity
Quarry rehabilitation plans, biodiversity action plans, and third-party certification (%)4
89
100
11, 13
Third-party certification on critical sites (%)5
84
100
11, 13
Air Emissions
Reduction of PM emissions per ton of clinker vs. 2005 (%)
88
95
12
Reduction of NOx emissions per ton of clinker vs. 2005 (%)
39
47
12
Reduction of SOx emissions per ton of clinker vs. 2005 (%)
54
67
12
Communities
Community engagement plans in priority sites (%)
99
100
9, 11
Community partners (million people)6
29.7
30
11
Employee Experience
Employee net promoter score (eNPS)
54
≥43
9, 11
Voluntary turnover (%)7
11
<10
9
Suppliers
Sustainability assessment of critical suppliers by an independent third party (% spend)
82
90
9, 11, 12, 13
Ethics and Compliance
Implementation of Ethics and Compliance Continuous Improvement Program (%)
100
100
9
Sustainable Finance
Debt and other instruments linked to sustainability (%)
54
85
9, 11, 12, 13
11
Cemex 2024 Integrated Report
12
Cemex 2024 Integrated Report
Our Purpose
We are driven by our
unwavering values,
progressive business
practices, and steadfast
commitment to sustainability.
We go beyond the present
to create a more sustainable
and prosperous future for
generations to come.
2024 Highlights
74
customer net
promoter score
60%
small- to medium-
sized businesses
in our supplier
network
~30M
community
partners
83%
stakeholders with
knowledge and skills
to contribute to our
digital journey
96%
of our operations
achieved zero
employee and
contractor lost time
injuries
54
employee net
promoter score
Our Strategy
Cemex Value Creation Model
Health and Safety: Our #1 Value and Priority
Stakeholder Alignment: Placing People at the Center of Every Business Decision
Digital Forward: Achieving 100% Digital Adoption Across Our Value Chain
12
Cemex 2024 Integrated Report
13
Cemex 2024 Integrated Report
Contents
Our Company
Our Strategy
• Cemex Value Creation Model
Health and Safety: Our #1 Value
and Priority
Stakeholder Alignment: Placing
People at the Center of Every
Business Decision
Digital Forward: Achieving 100%
Digital Adoption Across Our
Value Chain
Financial Performance
Environmental Excellence
Stakeholder Engagement
Governance
Appendix
Cemex
Value Creation
Model
Priority SDGs
We prioritize United Nations Sustainable Development Goals (SDGs) related to our business
strategy, provide the greatest opportunity to leverage our essential portfolio of products, create
profitable shared value, and contribute to the UN’s Sustainable Development Agenda.
Values
OUR GUIDING PRINCIPLES
Safety
Value-Generation
Integrity
Collaboration
Innovation
Diversity
Strategic Priorities
OUR BUSINESS DRIVERS
Health and Safety
Customer Centricity
Sustainability
Innovation
EBITDA Growth
Stakeholders
OUR VESTED-INTEREST PARTIES
Workforce
Customers
Investors
Suppliers
Communities
Civil Society
Cemex supplied 37,000 metric tons of cement
for the construction of the Pelješac Bridge, one
of the most significant infrastructure projects
in Croatia in the past three decades. Nearly all
the cement used in the project belonged to our
Vertua® family of lower-carbon products.
14
Cemex 2024 Integrated Report
Contents
Our Company
Our Strategy
Cemex Value Creation Model
• Health and Safety: Our #1 Value
and Priority
Stakeholder Alignment: Placing
People at the Center of Every
Business Decision
Digital Forward: Achieving 100%
Digital Adoption Across Our
Value Chain
Financial Performance
Environmental Excellence
Stakeholder Engagement
Governance
Appendix
Health and Safety:
Our #1 Value and Priority
Our Approach: Health and Safety is our #1 value and priority and a
moral imperative for our company. Whether an employee, contractor,
supplier, or community member, we strive for everyone to return
safely to their family.
SDGs:
We believe that a strong health and safety
culture directly contributes to SDG 8 and
supports SDG 9 by promoting responsible
industrialization, resilience, and innovation.
It also aligns with SDG 11 by establishing safe
workplaces that enhance the overall well-
being of urban areas and human settlements.
Our Health and Safety
Culture Starts at the Top
At Cemex, we know developing a health
and safety culture requires visible
commitment from leaders. We also know
clear expectations, rigorous management
policies, training, talent development,
collaboration, and best-practice sharing are
key components of a long-standing pledge
to health and safety.
For us, it starts with our chief executive
officer, who oversees our health and safety
strategy and performance, which our
Board of Directors regularly reviews. Every
year, our Sustainability, Climate Action,
Social Impact, and Diversity Committee
discusses action plans and evaluates health
and safety risks. Weekly health and safety
performance and monthly results recaps
keep our country, regional, and corporate
leaders updated on our progress.
Health and Safety Operations
Through standardized controls and pro-
cedures, we monitor our health and safety
progress in the countries where we operate.
Our working groups supervise, report on
performance, and share best practices
across the company through a coordinated,
consistent, and collaborative approach:
• Health and Safety Functional
Network. This is the network of
trained health and safety specialists
that the company has across all our
operations to help ensure that our
health and safety management system
is effectively implemented.
• Global Health and Safety Council. This
council includes regional health and
safety leaders as well as members of
the corporate health and safety team
to review improvements or changes for
implementation globally in any of our
management system elements.
• Global Health Forum. A group of
internal experts leading initiatives to
share health best practices and help
other employees and contractors
adopt healthier lifestyles.
Visible Felt Leadership Program
Strengthening health and safety leadership
skills is an integral part of our talent
management approach. Our Visible Felt
Leadership (VFL) program was developed
as a face-to-face training for leaders,
aimed at helping them lead by example
with frontline employees and contractors
using a constant, consistent, and positive
approach. The course, now available online,
covers improved safety communication,
leadership engagement, and proactive
safety culture practices. In 2024, the online
training became available in Cemex’s eight
core languages. Over the past decade, our
VFL program has consistently delivered
benefits like heightened safety awareness
and enhanced safety culture.
+303,000
VFL on-site interactions
between leaders and
frontline employees
and contract workers
15
Cemex 2024 Integrated Report
Contents
Our Company
Our Strategy
Cemex Value Creation Model
• Health and Safety: Our #1 Value
and Priority
Stakeholder Alignment: Placing
People at the Center of Every
Business Decision
Digital Forward: Achieving 100%
Digital Adoption Across Our
Value Chain
Financial Performance
Environmental Excellence
Stakeholder Engagement
Governance
Appendix
S P O T L I G H T : V I S I B L E F E LT L E A D E R S H I P
Leading With Care: How Cemex Shapes
a Culture of Safety
Joel, an executive leader at Cemex, knows
the ins and outs of the concrete business.
With more than 25 years of experience
at various concrete companies, he has
encountered many organizations that
claim to prioritize health and safety.
However, it wasn’t until the job at Cemex
nearly 10 years ago that he truly felt a
difference.
“From day one, there was something
distinct about Cemex. It was clear that
health and safety were ingrained in the
culture.”
What Joel sensed was the power of Visible
Felt Leadership (VFL), a training program
at Cemex that encourages leaders to
be actively present and engaged with
their teams to foster a strong culture of
health and safety. Over the years, the VFL
training has grown, positively impacting
lives across the organization.
“I’ve observed employees adopt safe
driving principles inside and outside of
working hours and successfully manage
medical emergencies thanks to the CPR
training provided.”
Even though Joel is now in a sales role,
he maintains the VFL mindset, noting
that health and safety practices should
be followed across the organization. To
be effective in VFL, Joel firmly believes
that leaders must come from a place
of genuine care and concern for their
employees.
“When I talk to my sales clients
about wearing their hard hats
or setting up their medical ID on
their phones, it changes the entire
dynamic. It shows that we care
beyond selling our products—it
demonstrates we are partners in
their safety and well-being.”
For Joel, it is evident that VFL isn’t just a
company initiative—it’s an attitude that
fosters a culture where safety and well-
being come first.
“It really is about the people. I believe
there is a right way and a wrong way to
approach people about health and safety.
You never know what’s going on in a
person’s life. Encouragement and positive
reinforcement are key. When we care for
one another, we foster an environment
where everyone feels valued, supported,
and empowered to make the best choices
in all areas of their lives.”
Health and Safety Leadership Development Process
This year we enhanced our health and safety leadership
development approach with a new process for operations
leaders, making it accessible across all regions worldwide.
From senior managers to frontline supervisors, leaders are
encouraged to engage in one-on-one conversations with
the person they report to, exchanging views and gaining
feedback about their safety performance strengths and
opportunities prior to creating individual development
plans that are measured throughout the year. The process
is designed to cascade level by level, and more than 1,000
operations leaders completed the process in 2024.
Cemex University: Health and Safety Academy
Completion of the Cemex University Health and Safety Academy is a requirement
for executives, line managers, and plant and corporate office supervisors. This
program strives to achieve a comprehensive understanding of responsibilities and
accountability, reinforcing our health and safety culture and practices within our
teams. Regular refreshers are conducted as needed to maintain and enhance this
commitment.
+1,000
operations leaders
completing the
new health and
safety leadership
development process
+5,500
participants in
the academy
during 2024
Topics covered in the courses include:
• Health and Safety Leadership
• Importance of People, Processes, and Facilities to Manage
Our Health and Safety Management System (HSMS)
• Incidents’ Root-Cause Analysis
• Key Elements for Supervisors to Manage Operations
According to Our HSMS
• Becoming Proficient in Our HSMS
16
Cemex 2024 Integrated Report
Contents
Our Company
Our Strategy
Cemex Value Creation Model
• Health and Safety: Our #1 Value
and Priority
Stakeholder Alignment: Placing
People at the Center of Every
Business Decision
Digital Forward: Achieving 100%
Digital Adoption Across Our
Value Chain
Financial Performance
Environmental Excellence
Stakeholder Engagement
Governance
Appendix
Global Health and Safety Policy
and Procedures
The foundation for our health and safety
commitment, and the cornerstone of our
Health and Safety Management System
(HSMS), is our Global Health and Safety
Policy, which establishes clear expectations
for all levels within our organization and is
applied across all our operations. Our global
procedures include guidelines to investigate
work-related injuries, occupational diseases,
and incidents so we can learn from them and
develop actions to mitigate future recur-
rences and replicate these learnings across
all our sites. Root-cause analysis of injuries
and occupational health cases currently helps
us learn from experience, yet we want to do
more. We are tracking new predictive safety
indicators designed to monitor and measure
the effectiveness of our initiatives, identify
hotspots, and develop preventive actions.
Cemex Health and Safety
Management System
Our HSMS empowers our leaders to
implement a successful health and safety
strategy and adequately allocate resources
to training programs across our opera-
tions. Our operations managers utilize our
HSMS for annual self-assessments and
for developing annual health and safety
improvement plans for their teams. The
system defines performance requirements
and goals in accordance with local regula-
tions, helping us assess potential risks and
plan mitigation measures. Communication
tools are embedded in the system, allowing
us to share best practices with our opera-
tions employees and contractors.
Underpinned by a strong emphasis on
leadership and accountability, Cemex
management is dedicated to making health
and safety our overriding priority. The
company’s management also oversees
the planning, implementation, monitoring,
and review of control measures aimed at
eliminating hazards or minimizing risks to
our workforce and those affected by our
business activities.
Every Cemex site has the HSMS in place,
and most of our cement sites are certified
to ISO standard 45001. This international
standard sets the criteria for an occupational
health and safety management system and
provides a framework for organizations to
identify, manage, and continually improve
their health and safety performance. This
standard helps us establish a systematic
approach to occupational health and safety
and fosters employee well-being.
ä Learn more about our Health and Safety Policy
on our website.
Global Corporate Governance Audits
Our annual corporate governance
audit program evaluates an average
of 40 global operational sites each
year, with comprehensive coverage
across all countries within a three-
year cycle. The primary objective is to
conduct an independent assessment of
compliance within our HSMS, providing
valuable feedback and improvement
recommendations.
The HSMS also undergoes regular audits
through the Corporate Governance Health
and Safety Audits program. This global
program conducts cross-regional audits in
multiple local operations annually, enabling
continuous improvement and best-practice
sharing on health and safety topics across
our operations.
Emergency
Management
Operational
Control
12
11
13
10
14
9
15
8
1
7
2
6
3
4
5
Incident Reporting,
Investigation &
Prevention
Standard Operating
Procedures
Audits, Inspections,
& Continuous
Improvement
Document
Control
Management of
Pandemics & Epidemics
Communication
& Consultation
Leadership &
Accountability
People Training
& Behaviors
Risk Management
Occupational Health
& Well-being
Regulation Policies
Contractor Safety
Management
Driving Safety
Cemex H&S
Management
System
Cemex’s operational sites include
facilities that may consist of multiple
locations rather than being confined
to a single location.
Our Cemex HSMS is aligned with the ISO 45001 standard and with commitments and
best practices outlined by the Global Cement and Concrete Association (GCCA). In
doing so, we incorporate insights from root-cause incident investigations and leverage
internal specialist knowledge to establish a robust and proactive system.
17
Cemex 2024 Integrated Report
Contents
Our Company
Our Strategy
Cemex Value Creation Model
• Health and Safety: Our #1 Value
and Priority
Stakeholder Alignment: Placing
People at the Center of Every
Business Decision
Digital Forward: Achieving 100%
Digital Adoption Across Our
Value Chain
Financial Performance
Environmental Excellence
Stakeholder Engagement
Governance
Appendix
Contractor Health and Safety
Verification System
Our health and safety culture extends to
contractors, including on-site contractors,
underscoring our top priority. The
Cemex Contractor Health and Safety
Verification Program seeks contractors’
adherence to rigorous health and safety
standards, mandates that contractors
receive proper training, and requires
relevant accreditations for contractors
working within Cemex operations.
Executed globally in collaboration with
specialized firms, we require all business
units to fulfill the program’s objectives.
Contractors are not permitted to
work on our premises when they fall
short of verification. This allows for
a thorough and stringent approach
to health and safety standards.
Health and Safety Excellence
We proudly honor top-performing
operational sites and employees who
exemplify our health and safety culture.
Through our annual Global Cemex
Awards, we recognize excellence in
categories like Zero4Life, Contractor
Management, Fit4Life, and Best and
Most Improved Business Sectors. We are
also recognized externally for our strong
commitment to health and safety.
External Recognition
Highlights Our Commitment
to Safe, Healthy Workplace
In 2024, we received external
validation of our strong health and
safety culture with 49 awards and 44
recognitions granted by governments,
organizations, and industry
associations. We are honored to be
acknowledged across all our regions
and health and safety categories.
Cámara Nacional del Cemento
(CANACEM)
Awards for innovative health and
safety projects and for achieving zero
lost time injuries at various cement
plants, Mexico
Fédération Internationale de
l’Automobile (FIA)
FIA Americas Award - Mobility for
road safety initiatives, Colombia
Portland Cement Association
Chairman’s Safety Performance
Award, U.S.
Safety Performance at Longmont
Lyons, CO, and Clinchfield, GA, plants
Health and Safety Awards in Europe
• Leader of Safety Golden Award,
Central Institute for Labour
Protection - National Research
Institute (CIOP-PIB), Poland
• Safety Grand Prix, Hrvatska Udruga
Menadžera Sigurnosti, Croatia
• First place in the Occupational Safety
Competition for our Rüdersdorf
and Eisenhüttenstadt plants, VDZ
(Verein Deutscher Zementwerk e. V.),
Germany
Our Zero4Life Commitment: Zero Injuries Across Our Business
We are committed to achieving zero injuries and continue to be a positive industry
benchmark in safety standards. In 2024, our employee lost time injury (LTI) frequency
rate was 0.6,1 and we had a 18% reduction in contractor LTIs versus 2023. We had zero
LTI incidents across 96% of our global operations. These results provide both motivation
and clear evidence that our continuous commitment is producing positive outcomes,
yet we will not be satisfied until we achieve zero injuries across all our operations.
Employee LTI frequency rate
(per million hours worked)
Cemex is a positive safety benchmark for a global company in our industry.2
1
LTI is 0.5 when considering the full-year performance level, including the periods of responsibility for discontinued operations.
2 Based on an internal analysis using publicly available information on companies within the global cement and concrete industry.
0.6
1
employee LTI frequency rate
96%
of our operations achieved
zero employee and contractor
LTIs in 2024
18%
reduction in number of
contractor LTIs versus 2023
0.61
2024
0.6
2023
0.6
2015
2.6
2010
18
Cemex 2024 Integrated Report
Contents
Our Company
Our Strategy
Cemex Value Creation Model
• Health and Safety: Our #1 Value
and Priority
Stakeholder Alignment: Placing
People at the Center of Every
Business Decision
Digital Forward: Achieving 100%
Digital Adoption Across Our
Value Chain
Financial Performance
Environmental Excellence
Stakeholder Engagement
Governance
Appendix
Our Programs, Campaigns Keep Health
and Safety Top of Mind
We have a wide range of programs that start with integrating health and safety into all
operational levels and are framed by our global policy and management system. We monitor
leading and lagging indicators, implement regional and local initiatives, and adopt best
practices, all in the spirit of continuous improvement.
Let’s Do It Campaign
This year we launched our global Zero4Life
Let’s Do It awareness campaign designed
to reach everyone in our organization.
The campaign launched with a video from
our chief executive officer, signifying its
importance and reminding our people that
safety is a shared responsibility. Our regions
cascaded the campaign and helped identify
additional safety measures, enabling us
to identify strategic action plans across all
regions with targeted initiatives specific to
certain operations.
Take 5 Together Program
Our global Take 5 Together program actively
promotes a take care of each other culture,
encouraging employees and contractors to
intervene when they observe a colleague
taking a risk. These collaborative, proactive,
and positive peer-to-peer interactions breed
trust among co-workers, help people return
home safe to their families, and reinforce
that everyone should be a safety leader. On
average, each worker engages in around six
of these interactions monthly. We already
have nearly 70% of employees actively
participating in the program, showcasing
our widespread commitment to a safe
working environment and practices, and
we continue to promote the importance of
everyone participating. The program also
includes comprehensive training across all
operations, embedding a pre-task personal
risk assessment for safer work practices.
Cemex Citizen, SCA&C
Our South and Central America and the
Caribbean (SCA&C) region onboards and
tutors employees, contractors, and those
new to their roles during their first 60
days on the job through its Cemex Citizen
program. The goal is to give participants
the confidence and resources they need
to make safety-conscious decisions and
act independently. Classroom learning, job
shadowing, mentorship, and on-the-job
verification of adherence to safety stan-
dards are all part of the program. Upon
final evaluation, participants graduate and
receive their white helmet, symbolizing
safety proficiency in their role.
Health and Safety Training Center, Mexico
Our Mexico Safety Training Center im-
merses middle managers in realistic health
and safety scenarios, combining theoretical
knowledge with innovative, practical appli-
cation to cultivate a robust safety culture.
The training focuses on 12 Safety Essentials
and provides lessons on high-risk work,
road safety, and emergency protocols.
Zero4Life Today for Drivers, EMEA
As part of our ongoing efforts to address road safety risks, our Europe, Middle East,
and Asia (EMEA) region developed a tailored program for employee and contracted
truck drivers. This three-hour facilitator-led program fosters an incident-free
mindset and strengthens a culture of safety first. The program is discussion-based,
featuring real-life testimonies to enhance engagement and learning. To date, we
have reached nearly 7,000 drivers across the region.
Drive to Excel, U.S.
This driver training enhances safety, operational efficiency, and customer satisfaction among
ready-mix drivers. It empowers drivers to assess risks, avoid hazards, and optimize perfor-
mance through defensive driving techniques and operational best practices.
Back to Basics is a refresher training for experienced ready-mix drivers, reinforcing
fundamental safety principles and operational procedures aligned with Drive to Excel.
Through a combination of classroom instruction and hands-on field exercises, drivers refresh
their knowledge, tackle local operational challenges, and enhance safety for themselves,
their colleagues, and the public. With these comprehensive training modules, Drive to Excel
fosters a stronger safety culture, improves productivity, and increases driver retention.
19
Cemex 2024 Integrated Report
Contents
Our Company
Our Strategy
Cemex Value Creation Model
• Health and Safety: Our #1 Value
and Priority
Stakeholder Alignment: Placing
People at the Center of Every
Business Decision
Digital Forward: Achieving 100%
Digital Adoption Across Our
Value Chain
Financial Performance
Environmental Excellence
Stakeholder Engagement
Governance
Appendix
Vulnerable Road Users Initiatives
Just as we adopt innovative approaches to safety for
our drivers and contractors, we are doing the same for
motorcyclists, cyclists, pedestrians, and other vulnerable
road users. Using our knowledge, we collaborate with
educational institutions, traffic authorities, community
groups, and civil society organizations on awareness
campaigns focused on road safety, regulation
compliance, and accident prevention. In 2024, our
most experienced Cemex employees taught key safety
requirements and the importance of road safety basics
to more than 50,000 community members while
explaining the safety features of our vehicles.
• Colombia. Vulnerable road users and stakeholders
participated in our Together on the Road awareness
campaign in 2024. This initiative extended to
motorcyclists from leading delivery companies,
fostering alliances with government entities,
motorcycle manufacturers, and transportation
companies. Going beyond training, our trucks
are equipped with vehicle sensors, camera
systems, mobile apps, and GPS tracking,
crucial elements in safeguarding vulnerable
road users. These features aim to exceed local
legislative requirements, exemplifying our
dedication to exceeding safety standards.
• EMEA. In all the countries where we operate in
Europe, Asia, and Africa, we regularly hold events
with members of the public to raise awareness about
the safety of vulnerable road users. During these
events, we show the safety equipment devices on
our trucks and explain the drivers’ perspective.
• Mexico. In 21 cities across the country, 24 sessions of
Bike School were held, in which Cemex truck drivers
gained awareness, from a cyclist’s perspective, the
rules to follow on the road and recommendations to
keep them safe.
• U.S. Events were held in six cities where many
members of the public participated. They were
informed about Cemex’s strategies to improve
road safety on public roads.
Technology Advances Our Zero4Life Goal
We continued to leverage technology this year, including
Artificial Intelligence (AI), mobile and digital solutions, and
telematics to help us reduce health and safety incidents at our
operational sites and in how we transport materials. We are
advancing our use of AI, including virtual reality training in real
and controlled environments, drone flights to anticipate and
mitigate risks, safety assistance systems, and telematics data.
Global Health and Safety Dashboard
Technology drives our global dashboard, which includes
key leading and lagging indicators for health and safety
management. Used by all countries and updated daily,
the dashboard correlates leading and lagging indicators,
identifies incident-free anniversaries, highlights main
opportunity areas, shows progress of corporate audits
and site inspections, and guides development of
improvement plans.
I4 Safety
Our new i4 Safety program uses cameras at our sites to
monitor unsafe behaviors, giving a real-time warning to
the person engaging in the unsafe behavior and texting
the local supervisor so they can immediately respond. The
program was piloted this year in four regions—Mexico,
SCA&C, EMEA, and the U.S. across five sites—and it included
cement plants, logistics operations, aggregates, and
block and ready-mix locations. Based on the successful
results, we are planning to implement i4 Safety in more
strategically selected sites in 2025.
Near Miss/Hazard Alert System
Cemex continues its decades-long practice of actively
involving employees and contractors in controlling risk and
preventing incidents. Our Near Miss/Hazard Alert System
is a tool that advises management of potential health and
safety risks by those who see them firsthand. Our Intelex
App allows for near-miss and hazards to be reported, as
well as other safety process reports—anytime, anywhere—
enabling prompt reactions to prevent injuries. For offline
workers, we’ve introduced an additional mobile Zero4Life
solution and anticipate it will provide the same capability to
capture near misses and hazard alerts.
Mobile and Digital
Our mobile and digital solutions allow our workers to use
their mobile devices to register safety procedures before
starting any task or to capture near misses, unsafe conditions,
or unsafe acts. We strive to continue implementing these
solutions in all countries where we operate.
Regions Embrace Technology to
Improve Health and Safety
Telematics, Mexico. Telematics data provides real-
time information about trucks and drivers’ conditions.
Linked to our transportation control tower in Mexico,
geofencing technologies and telematic data provide
information about driver fatigue and distractions,
speeding, route deviations, and vehicle maintenance.
By the end of 2024, this real-time data was available
for 100% of our company-owned vehicles, 97% of
contractor vehicles in Mexico’s supply chain area (without
unions), and almost all Cemex-owned light vehicles.
Safety Assistance Systems, EMEA. Cemex is reinforcing
its commitment to health and safety across its European
admixture facilities with the installation of innovative
safety assistance systems. The technology includes
a reverse assist camera for forklift trucks, detecting
pedestrians and automatically reducing speed in case of
danger. This safety guard system also projects warnings
at building gates, enhancing awareness for pedestrians
and other forklift operators. Following successful trials in
Germany, implementation commenced in the U.K. and
Israel, with plans for a broader rollout in the future.
Drone Usage, Mexico. Our Mexico operations continue
to use drones to enhance site safety, road safety, and
training. This initiative prevents worker exposure to high-
risk tasks like working at heights by enabling inspections
of roofs and tall structures. It also aids in identifying road
safety risks, offering an aerial perspective on dangerous
routes or truck access before material delivery. Utilizing
aerial footage of operations and vehicle maneuvers
enhances worker training for safer task execution,
mitigating potential incidents.
20
Cemex 2024 Integrated Report
Contents
Our Company
Our Strategy
Cemex Value Creation Model
• Health and Safety: Our #1 Value
and Priority
Stakeholder Alignment: Placing
People at the Center of Every
Business Decision
Digital Forward: Achieving 100%
Digital Adoption Across Our
Value Chain
Financial Performance
Environmental Excellence
Stakeholder Engagement
Governance
Appendix
Our Holistic Approach to Well-Being: Enriching Quality of Life
Our Global Well-Being model was created to facilitate an enhanced quality of life for our
employees inside and outside of work. Designed around four pillars, we built a tool to identify
gaps, develop programs and activities, and monitor progress. We are also proactive at
sending monthly, targeted messages on well-being topics and offering events and activities
that support our employees’ well-being journey.
Health Essentials. Through this global
health initiative, we aim to reduce health
risks and encourage employees to live a
healthy lifestyle on and off the job. The
initiative features easy-to-understand
materials on 12 occupational and preventive
health topics. Areas such as Lung Power
and Safeguard Your Back address
occupational risks, while topics like Healthy
Heart and Vaccines promote a healthier
lifestyle and aim to reduce the number of
days lost due to illness.
Mental Health Network. Our Mexico region
addresses the overall well-being of our
employees by focusing on the prevention,
management, and care of mental health
while creating a supportive workplace
that raises awareness of its importance.
The network provides tools like Cemex
University training, a helpline, specialized
care for severe traumatic events, and
dedicated spaces that offer employees
a place to disconnect with calming music,
meditation tools, and puzzles.
Cuéntame Mental Health Platform.
Cuéntame (Tell Me) is our emotional
wellness program designed for education,
prevention, and early intervention of
mental health issues in our Mexico region.
Offering three components—awareness
programs, a digital support platform,
and insurance coverage—the program
aims to promote a mentally healthy and
psychologically safe environment that
allows employees to speak freely about
mental health.
Well-Being Cup. The SCA&C region’s
Well-Being Cup raises awareness about
life, health, and well-being through
healthy lifestyle learning opportunities.
Its purpose is to inspire and empower
teams across the region to choose a
healthier future. Reaching all 11 countries
in the SCA&C region, the initiative has
600 participants who compete in group
and individual sports challenges on digital
platforms and in the plants, learn about
nutrition through cooking workshops, and
participate in mental health seminars. To
date, the program has resulted in a reduced
absenteeism across the region.
Workforce Experience
Fosters work-life balance through
awareness campaigns that
reinforce employee data protection,
respect for their time, and
acknowledgment of the right
to disconnect.
Emotional Health
Promotes a healthy state of mind
through education and tools that
contribute to managing emotions
and building resilience to enhance
mental well-being and address
work-related stress.
Physical Health
Encourages physical health through
regular exercise, well-balanced
nutrition, sufficient rest, and
regular health checks.
Financial Fitness
Develops personal financial skills,
including day-to-day spending,
insurance, and retirement planning
to enhance employees’
financial health.
Cemex
Global Well-Being
Model
21
Cemex 2024 Integrated Report
Contents
Our Company
Our Strategy
Cemex Value Creation Model
Health and Safety: Our #1 Value
and Priority
• Stakeholder Alignment: Placing
People at the Center of Every
Business Decision
Digital Forward: Achieving 100%
Digital Adoption Across Our
Value Chain
Financial Performance
Environmental Excellence
Stakeholder Engagement
Governance
Appendix
Stakeholder Alignment:
Placing People at the Center
of Every Business Decision
Our Approach: Across stakeholder groups, we identify risks,
listen, and co-create solutions that are of value to Cemex
and our entire ecosystem.
Stakeholder Alignment Ensures
Accountability, Meaningful Outcomes
We have accelerated our stakeholder alignment efforts to have consistent, robust,
and integrated engagement processes across all stakeholder groups. We start by
actively listening to diverse voices throughout our global communities, which helps us
identify and prioritize opportunities that contribute to the next frontier of sustainable
living. We then collaborate and engage with those who have a vested interest in our
business and who share our ambition to accelerate a just transition to digital and green
economies. Collectively, we transform challenges into profound opportunities that
best serve humanity and create positive change.
The effectiveness of our stakeholder actions is systematically tracked through
performance indicators, stakeholder feedback, and continuous communication.
Our goal is to engage with stakeholders’ key interests, manage risks and opportunities,
set a clear direction to ensure accountability, and deliver long-term shared value and
meaningful outcomes for our company and the communities where we operate.
Honesty, respect, and integrity are
the hallmarks of our meaningful
stakeholder relationships.
Civil Society
Finding common ground with
vested-interest parties who
share our vision to accelerate
a sustainable world.
People at
the Center of
Every Business
Decision
Workforce
Investing in our
people to unlock
their potential.
1
2
3
4
5
6
Customers
Driving a superior
customer
experience.
Investors
Delivering solid financial
results, advancing
our sustainability goals.
Communities
Engaging with
communities to
deliver
transformative
outcomes.
Suppliers
Building strong
relationships, fostering
mutual value.
S
T
A
K
E
H
O
L
D
E
R
A
L
I
G
N
M
E
N
T
22
Cemex 2024 Integrated Report
Contents
Our Company
Our Strategy
Cemex Value Creation Model
Health and Safety: Our #1 Value
and Priority
Stakeholder Alignment: Placing
People at the Center of Every
Business Decision
• Digital Forward: Achieving 100%
Digital Adoption Across Our
Value Chain
Financial Performance
Environmental Excellence
Stakeholder Engagement
Governance
Appendix
Digital Forward:
Achieving 100% Digital
Adoption Across Our
Value Chain
Our Approach: We are accelerating our digital transformation by
leveraging technologies to evolve business processes, provide superior
customer experience, and increase business value for Cemex.
Administration &
Support Services
(Manage)
Production
(Make)
Supply
Chain
(Deliver)
Superior
Customer
Experience
Commercial
(Sell)
Digital Forward Framework
Building organizational and technology-
based capabilities allows us to continuously
improve our customer experience. We have
integrated four core processes into our
Digital Forward framework:
• Enabling a Digital-First Commercial
Experience. Improve how customers
interact with Cemex, offering self-service
capabilities across the customer journey
and transforming every customer-facing
role into a digital promoter. Cemex is
dedicated to becoming a 100% digital or-
ganization and has created the Cemex Go
Acceleration program to achieve complete
digital adoption among customers.
• Operating an Integrated Supply Chain.
Leverage system integrations and
artificial intelligence, provide real-time
visibility, and deliver end-to-end value
that enables a flexible and resilient
supply chain.
• Digitalizing Our Operations. Transform
our production processes using cutting-
edge technologies to drive efficiency,
productivity, and sustainability.
• Scaling Administration and Support
Services. Broaden availability of business
data and leverage automation for internal
transactions, exception handling, and
reports delivery.
Where Our Digital Journey Began
Our digital transformation journey began in our commercial process with Cemex Go. As
our global flagship omnichannel platform, Cemex Go provides a consistent digital-first
commercial experience for the customer. By integrating our online store, salesforce, and
service centers, we showcased the potential digital technologies have in transforming business
models and enhancing customer experience. The result this year was higher technology
adoption rates, and, ultimately, a customer net promoter score of 74, considered a superior
satisfaction level in our industry.1 Digital became a game changer for us.
Global Program Extends Our Digital Transformation
We have taken the next step in our digital journey by implementing Digital Forward across our
organization. This global program extends our transformation to all core business processes
in the company, including commercial, supply chain, production, and administration. Now, all
employees within Cemex are involved in our digital transformation, whether they’re making
our product, selling it, delivering it, or supporting our core business processes.
SDGs:
Our strong commitment to helping our customers
succeed and providing a superior experience
contributes to SDG 8, and our determination to
build sustainable cities and communities contributes
to our priority SDGs 9 and 11.
1
Retently 2024 NPS Benchmarks for B2B companies.
23
Cemex 2024 Integrated Report
Contents
Our Company
Our Strategy
Cemex Value Creation Model
Health and Safety: Our #1 Value
and Priority
Stakeholder Alignment: Placing
People at the Center of Every
Business Decision
• Digital Forward: Achieving 100%
Digital Adoption Across Our
Value Chain
Financial Performance
Environmental Excellence
Stakeholder Engagement
Governance
Appendix
Digital Forward Enablers
In the dynamic landscape of today’s
business environment, embracing digital
transformation is paramount to maintaining
a competitive edge. We are making
this possible through our three enablers
designed to foster a culture of adaptability,
continuous learning, and technological
progress within our organization.
Promoting Innovation and New Technologies.
We embrace the evolution of processes and
practices, recognizing that adaptability is
key to success. We are strengthening our
open digital innovation ecosystem, searching
for startups with practical uses of digital
technologies and new business models that
may improve productivity and enhance our
value proposition.
Empowering Data and AI-Driven Decisions.
We pursue data democratization across
the organization, turning data into valuable
assets and generating value from them.
We are focused on creating a robust
data infrastructure, advanced analytics
capabilities, and machine learning algorithms
to turn data into actionable insights.
Augmenting Our People Capabilities.
We foster a culture of continuous learning,
collaboration, and digital knowledge,
propelling our organization forward. We
encourage knowledge sharing and skill
exchange across areas, striving to equip
our workforce to navigate the digital
transformation.
In 2025, we will perform a Digital
Maturity Assessment to identify gaps
in current practices, improve our
company’s digitalization, and drive
our business transformation forward.
Initiatives Build Culture,
Create Champions
Open Dialogue Event
In 2024, we deployed our Digital
Forward initiative globally through
an Open Dialogue event that
reached more than 2,500 live-
stream connections and almost
200 people attending in person.
Led by our organization’s top
leadership, the forum defined key
elements of the digital culture we
are building and explained how
everyone can contribute to our
digital transformation. To continue
raising awareness, we are engaging
employees through internal
channels and have reached more
than 4,000 to date.
Digital Movers
Across our business, we are accel-
erating the use of digital technology
and preparing our employees to be
digital champions. Integrating our
systems allows us to work in new
ways, enabling our employees to
address more value-added thinking
and activities.
To advance our transformation, we
launched our first cohort of Digital
Movers this year with an immersive
learning program experience. Our
goal: Create digital champions
throughout our company globally to
influence the use of digital solutions
to address business challenges.
ä Learn more about Digital Movers.
89%
employees who believe Cemex
provides technological tools and
infrastructure to enhance their
efficiency and effectiveness at work1
83%
employees with knowledge
and skills to contribute to
Cemex’s digital journey1
Digital Forward Culture
After extensive research, we defined key behaviors outlining our expectations for
employees within a digital culture. These behaviors reflect our commitment to customer
centricity, data-driven decision-making, innovation and continuous learning, and agile
collaboration. When demonstrating these attributes, our employees make greater
contributions to innovation, operational excellence, and the effective utilization of
technology as a strategic enabler for transformation.
1
Participant feedback from Digital Forward Essentials course.
24
Cemex 2024 Integrated Report
Our Purpose
We are delivering solid
financial results as
we advance our
sustainability goals.
2024 Highlights
US$16.2B
global sales
19.0%
operating
EBITDA margin
US$2.2B
in announced
divestments
leading to significant
portfolio rebalancing
1.81x
leverage ratio
lowest since 2007
~US$344M
operating EBITDA
contribution from
growth investment
strategy
Regained
Investment-Grade
Rating
Standard & Poor’s
and Fitch
US$3.1B
operating EBITDA
Financial
Performance
Financial Highlights
Continuously Advancing Toward Our Strategic Priorities
Sustainable Finance
Consolidated Results
2024 Financial Highlights
2024 represents a pivotal year in the corporate transformation we envisioned in 2020.
Our leverage ratio stood at 1.81 times1, its lowest level since the outbreak of the global
financial crisis, while achieving our long-running goal of recovering our investment-grade
rating. Our free cash flow after maintenance capital expenditures was the highest since
2017, adjusting for the extraordinary payment of the tax fine in Spain.
In a muted volume environment, we focused our attention on costs and pricing, as well as
on optimizing production with increases in operating efficiency in key markets. With US$2.2
billion in announced divestitures, we significantly rebalanced our portfolio toward developed
markets with more consistent and attractive growth potential.
With the restoration of our financial health and several years of progress
on our growth strategy, we took the first step on a shareholder return
policy with the announcement of a progressive and sustainable dividend
program in March 2024.
1
Calculated in accordance with Cemex’s contractual obligations under its main bank debt agreements.
2 Under IFRS, Cemex translates the financial statements of foreign subsidiaries using exchange rates at the reporting date for the
statements of financial position and the exchange rates at the end of each month for the income statement.
3 Based on an average of 1,469 and 1,470 million American Depositary Shares (ADS) for 2024 and 2023, respectively. For purposes of
this report, average ADSs outstanding equals the total number of Series A shares and Series B shares outstanding as if they were all
held in ADS form.
4 Includes lease contracts as per IFRS.
Net income for the year was a record level in recent history, driven
by a lower effective tax rate and gains from asset divestments.
Operating EBITDA
(millions of US dollars)
Free cash flow after
maintenance capital
expenditures
(millions of US dollars)
Leverage ratio1
(times)
2,434
3,150
3,079
2024
2023
2022
553
1,208
870
2024
2023
2022
2.84x
2.06x
1.81x
2024
2023
2022
(in millions of U.S. dollars, except per-ADS amounts)
20242
20232
Var. (%)
Sales
16,200
16,554
(2%)
Operating earnings before other expenses, net
1,828
1,959
(7%)
Operating EBITDA
3,079
3,150
(2%)
Controlling interest net income
939
182
415%
Controlling interest basic earnings per ADS3
0.64
0.13
392%
Controlling interest basic earnings per ADS from
continuing operations3
0.61
0.07
788%
Controlling interest basic earnings per ADS from
discontinued operations3
0.03
0.06
(43%)
Free cash flow after maintenance capital
expenditures
870
1,208
(28%)
Total assets
27,299
28,433
(4%)
Total debt plus leases4
6,700
7,486
(10%)
Total stockholders’ equity
12,477
12,116
3%
Contents
Our Company
Our Strategy
Financial Performance
• 2024 Financial Highlights
Continuously Advancing Toward
Our Strategic Priorities
Sustainable Finance
Consolidated Results
Environmental Excellence
Stakeholder Engagement
Governance
Appendix
25
Cemex 2024 Integrated Report
26
Cemex 2024 Integrated Report
Contents
Our Company
Our Strategy
Financial Performance
2024 Financial Highlights
• Continuously Advancing Toward
Our Strategic Priorities
Sustainable Finance
Consolidated Results
Environmental Excellence
Stakeholder Engagement
Governance
Appendix
Continuously Advancing
Toward Our Strategic Priorities
Strategic Priorities and 2024 Achievements
Metric
Our Approach
Our 2024 Achievements
Improve profitability and
free cash flow generation
Improve profitability through our pricing strategy,
cost containment efforts, and production efficiency
enhancement.
Enhance free cash flow generation after maintenance
capital expenditures to continue executing our growth
investment strategy, further deleveraging, and return
cash to our shareholders.
• After an exceptional 2023, we posted the second-strongest sales and
operating EBITDA in 2024.
• In 2024, despite a muted volume environment, we focused our efforts
on costs as well as optimizing production with increases in operating
efficiency in key markets.
• Operating EBITDA margin stood flat at 19%, mostly driven by our resilient
pricing strategy and cost efficiency measures.
• We also achieved the highest free cash flow after maintenance since
2017, adjusting for the extraordinary payment of the Spanish tax fine.
Optimize our portfolio
for growth
Streamline our portfolio, focusing on the U.S., Europe,
and Mexico through strategic divestments, particularly in
selected emerging markets.
Continue executing our growth investment strategy, geared
toward the U.S., Europe, and Mexico, through attractive
bolt-on and margin enhancement investment opportunities.
Focus on growing and developing our Aggregates, Cement,
and Urbanization Solutions businesses mainly in the U.S.
market.
Develop Urbanization Solutions as a core business.
• With US$2.2 billion in announced divestitures, we significantly rebalanced
our portfolio toward developed markets with more consistent growth
potential.
• Approximately 90% of our operating EBITDA is now generated in the
U.S., Europe, and Mexico.
• Since 2020, we have completed investments worth US$1.5 billion under
our growth investment pipeline, which contributed US$344 million to
consolidated operating EBITDA in 2024.
• Our Urbanization Solutions business grew 4% on a like-to-like basis.
We are pleased with our achievements in 2024, delivering resilient results after an exceptional 2023
and despite being in a challenging demand environment across our global footprint. We significantly
rebalanced our portfolio toward developed markets with more consistent and attractive growth
potential. We also made significant progress on deleveraging, achieving our goal of recovering our
investment-grade rating. Our leverage stood at 1.81 times1, its lowest since the global financial crisis.
While we remain committed to additional credit improvements in the near term, these achievements
provide a runway to more aggressively pursue our growth strategy and lay the foundation for a
sustainable shareholder return program.
1
Calculated in accordance with Cemex’s contractual obligations under its main bank debt agreements.
27
Cemex 2024 Integrated Report
Contents
Our Company
Our Strategy
Financial Performance
2024 Financial Highlights
• Continuously Advancing Toward
Our Strategic Priorities
Sustainable Finance
Consolidated Results
Environmental Excellence
Stakeholder Engagement
Governance
Appendix
Return cash to
shareholders
Continue working on shareholder return initiatives that
include a progressive dividend program and opportunistic
share buybacks.
• With the restoration of our financial health and several years of progress
on our growth strategy, we took the first step on shareholder return
with the announcement of a US$120 million progressive and sustainable
dividend program in March 2024.
• For 2025, the company is proposing at Cemex’s Annual Ordinary
General Shareholders Meeting an increase in our dividend payment and
approving potential share buybacks of up to US$500 million.
Maintain a strong capital
structure and
investment-grade
rating
Leverage ratio well within investment-grade rating
parameters, while maintaining a strong liquidity position.
• Standard & Poor’s and Fitch global scale credit rating at BBB-, achieving
investment-grade rating during the year.
• Leverage ratio at 1.81x, the lowest since the global financial crisis, as
measured under our main debt agreements.
• Targeting a 1.5x leverage ratio in the medium-term to be well within BBB
credit rating metrics.
• Ample liquidity, with committed revolving credit facilities of
approximately US$2.3 billion.
• Healthy debt maturity profile.
Advance sustainability
agenda
Goal of a 31% reduction in net CO2 emissions by 2030 vs.
2020 baseline
Recognizing sustainability as a competitive advantage, we
continue advancing toward our 2030 carbon-reduction
goal and the company’s vision to be a net-zero CO2
company by 2050.
• Another year of accelerated progress in decarbonization with a 2.4%
and 8.1% like-to-like decline in our cement Scope 1- and 2-specific CO2
emissions, respectively.
• As a result of our Future in Action program launched in 2020, our cement
Scope 1- and 2-specific CO2 emissions have declined by 15% and 18%
respectively, a pace that would have previously taken us 16 years to
achieve.
• A Cemex-led consortium was selected to receive €157 million from the EU
Innovation Fund for carbon capture at our Rüdersdorf plant in Germany.
Sustainable Finance
For Cemex, sustainable finance is a core element of the company’s overall financial
strategy. It is a catalyst and a key lever, mobilizing capital to accelerate our
decarbonization journey and turning abstract goals into concrete targets and,
ultimately, contributing to a lower-carbon and more resource-efficient economy.
By aligning our funding needs with our sustainability goals, we aim for our
financial activities to be fully integrated with our commitment to sustainability,
allowing access to specialized sustainable capital sources and optimizing our
cost of capital.
In 2021, Cemex released its Sustainability-Linked Financing Framework, one of the
most comprehensive in the building materials sector, enhancing alignment between
corporate sustainability commitments and financing strategy. This framework outlines
principles for issuing various sustainability-linked financing instruments, including bonds,
private placements, loans, and derivatives. In 2022, Cemex launched its Green Financing
Framework, which facilitates the issuance of bonds, loans, and other debt-like instruments
for eligible green projects. Both frameworks were updated in 2023 to support our more
ambitious decarbonization goals, validated by the Science Based Targets initiative under
their 1.5°C scenario, the most ambitious pathway defined for the cement industry.
In particular, this latest update of Cemex’s Green Financing Framework expands eligibility
criteria to incorporate innovative projects such as carbon capture, utilization, and storage
technology.
In 2024, Cemex reopened and placed its peso-denominated sustainability-linked long-
term notes for a nominal amount of MXN$5.5 billion. The reopening and placement of
the notes involved two series: Cemex 23L for MXN$2 billion with a 2.6-year tenor at a
floating rate of TIIE 28 + 0.45%, and Cemex 23-2L for MXN$3.5 billion with a 6.6-year
tenor at a coupon of 11.48%.
Additionally, the refinancing of our Euro sustainability-linked syndicated bank facility was
completed, which consists of a €450 million term loan and a €300 million committed
revolving credit facility. By the end of 2024, all our securitization programs are now
aligned to our 2023 Sustainability-Linked Financing Framework.
28
Cemex 2024 Integrated Report
Contents
Our Company
Our Strategy
Financial Performance
2024 Financial Highlights
Continuously Advancing Toward
Our Strategic Priorities
• Sustainable Finance
Consolidated Results
Environmental Excellence
Stakeholder Engagement
Governance
Appendix
Contents
Our Company
Our Strategy
Financial Performance
2024 Financial Highlights
Continuously Advancing Toward
Our Strategic Priorities
Sustainable Finance
• Consolidated Results
Environmental Excellence
Stakeholder Engagement
Governance
Appendix
Consolidated Results
Following is a review of the 2024 operational results and the financial condition of the company:
Consolidated sales in 2024 reached
US$16.2 billion, a decrease of 1% on a like-
to-like basis. Higher prices were offset by
lower volumes in our markets.
Cost of sales, as a percentage of sales,
increased by 0.1 percentage point to
66.4% in 2024 mainly driven by higher
fixed costs, along with a decrease in sales.
However, we continued to experience
energy tailwinds, particularly in fuels for
cement production.
Operating expenses, as a percentage
of sales, increased by 0.4 percentage
point to 22.3% in 2024.
Operating EBITDA declined 1% on a like-
to-like basis, reaching US$3.08 billion. In
a muted volume environment, we focused
our attention on pricing, costs, and
optimizing production with increases in
operating efficiency in key markets. With
prices more than offsetting costs, a slight
decline is attributed to volume dynamics.
Operating EBITDA margin in 2024 was
flat year over year at 19.0%. All regions,
with the exception of EMEA, experienced
margin expansion.
We reported a controlling interest net
income of US$939 million in 2024, a
record level in recent history and an
increase of 415% on a year-over-year
basis, driven by a lower effective tax rate
and gains from asset divestments.
Total debt plus leases decreased by 10%,
or US$786 million, to US$6.7 billion at the
end of 2024.
1
Includes operations in the United Kingdom, France, Germany, Poland, Spain, Israel, Czech Republic, Croatia, Egypt, and the United Arab Emirates.
2 Includes operations in Colombia, Panama, Caribbean TCL, Puerto Rico, Nicaragua, Jamaica, and the Caribbean.
3 Includes minor subsidiaries with different lines of business.
4 Sales before eliminations of intragroup transactions.
5 Includes equity-accounted investees. Additionally, others and intercompany eliminations includes assets held for sale of our operations in the Dominican Republic.
See note 4.3 in our 2024 audited consolidated financial statements on page 146 of this report.
12%
34%
15%
39%
8%
32%
29%
31%
Sales by Product6
Cement
Ready-Mix
Aggregates
Urbanization Solutions
Sales by Region6
Mexico
U.S.
EMEA
SCA&C
6 Sales before others and eliminations.
Global Operations
(in millions of U.S. dollars)
Business Unit
Sales4
Operating
Earnings
Before Other
Expenses, Net
Operating
EBITDA
Total
Assets5
Mexico
4,881
1,268
1,475
4,155
United States
5,194
517
1,031
12,985
Europe, Middle East, and Africa1
4,631
330
637
5,440
South, Central America, and the Caribbean2
1,244
154
234
1,980
Others and intercompany eliminations3
250
(441)
(298)
2,739
Consolidated amounts
16,200
1,828
3,079
27,299
29
Cemex 2024 Integrated Report
Contents
Our Company
Our Strategy
Financial Performance
2024 Financial Highlights
Continuously Advancing Toward
Our Strategic Priorities
Sustainable Finance
• Consolidated Results
Environmental Excellence
Stakeholder Engagement
Governance
Appendix
30
Cemex 2024 Integrated Report
Contents
Our Company
Our Strategy
Financial Performance
2024 Financial Highlights
Continuously Advancing Toward
Our Strategic Priorities
Sustainable Finance
• Consolidated Results
Environmental Excellence
Stakeholder Engagement
Governance
Appendix
Mexico
Sales in Mexico increased 1% on a like-to-
like basis to US$4.9 billion, and operating
EBITDA increased 3% year over year to
US$1.5 billion. The depreciation of the
Mexican peso resulted in an operating
EBITDA impact of $52 million in 2024.
Volume demand in Mexico had two speeds
in 2024, growing in the first half and then
declining in the second half post-election.
In 2024, our cement volumes decreased
by 1%, while our ready-mix concrete and
aggregates volumes were flat.
United States
Our U.S. operations’ sales decreased
by 3% to US$5.2 billion, while operating
EBITDA decreased by 1% to US$1
billion due to extreme weather events,
estimating an impact of US$38 million
in our operating EBITDA during the
year. Our U.S. operations’ domestic
gray cement, ready-mix concrete and
aggregates volumes decreased by 6%,
10%, and 1%, respectively, in 2024.
Importantly, even with lower volumes,
full-year operating EBITDA was relatively
stable, while margins expanded due to cost
optimization efforts and lower fuel prices.
Maintenance investments paid off, with a
higher operational efficiency that allowed
us to substitute more profitable domestic
production for imports.
Europe, Middle East, and Africa
During 2024, sales decreased 2% on a
like-to-like basis to US$4.6 billion, while
operating EBITDA decreased by 3% to
US$637 million. Our regional domestic gray
cement volumes were flat, while our ready-
mix concrete and aggregates volumes
decreased by 6% and 4%, respectively.
Our European operations experienced a con-
tinued improvement during the second half of
the year. Eastern Europe continued benefit-
ing from EU-funded infrastructure spending,
while Western Europe showed signs of re-
covery against an easier comparison base.
On climate action, our operations in
Europe continued delivering record levels
of decarbonization and are now very close
to reaching both the European Cement
Association’s and Cemex’s consolidated
2030 CO2 emissions target.
In the Middle East and Africa, operating
EBITDA improved at the end of the year
due to better pricing dynamics in Egypt and
increased construction activity in Israel.
South, Central America,
and the Caribbean
During 2024, sales were flat, while operating
EBITDA increased by 2% on a like-to-like ba-
sis. Our operations in the region once again
delivered positive results in 2024 amidst a
challenging demand backdrop, with growth
in operating EBITDA led by positive pricing
dynamics. Cement and ready-mix concrete
volumes declined 2% and 5%, respectively.
The formal sector continues driving demand
in the region with large infrastructure projects
such as the Bogota Metro in Colombia, in
which Cemex has been awarded more than
80% of total volumes, and the fourth bridge
over the canal in Panama.
Global Trading1
In 2024, we traded around 11 million tons
of cementitious and non-cementitious
(other) materials, in more than 60 countries,
including around 7 million tons of cement
and clinker and around 3 million tons
of cementitious and other materials.
Additionally, we traded approximately 2
million tons of certain primary fuels. This
information does not include discontinued
operations. Our trading network enables
us to maximize the capacity utilization of
our facilities worldwide while reducing our
exposure to the inherent cyclicality of the
cement industry. We are generally able to
distribute excess capacity to regions around
the world where there is demand. In addition,
we believe that our worldwide network of
strategically located marine terminals allows
us to coordinate maritime logistics on a global
basis and minimize transportation expenses.
Our trading operations also enable us to
explore new markets without significant initial
capital expenditure.
Freight rates, which account for a large
share of the total import supply cost, have
been subject to significant volatility in recent
years. However, our trading operations
have obtained significant savings by
contracting maritime transportation in due
time and by using our own and chartered
fleets, which transported around 74% of
the traded volume of certain primary fuels,
cement, and clinker during 2024.
In addition, we provide freight service to
third parties, which allows us to generate
additional revenues.
Other Information
During 2024 and 2023, in the countries in
which we operate, we paid in cash a total
amount of taxes of US$878 million and
US$515 million, respectively.
During 2024, we received a total of European
Union Allowances (EUAs) of 5,402,630
(5,800,617 in 2023) and UK Allowances
(UKAs) of 845,036 (845,037 in 2023).
As of December 31, 2024, Cemex has already
achieved a 47% reduction in CO2 emissions
versus its 1990 baseline across all of Cemex’s
cement plants in Europe. Cemex is the first
company in its sector to set industry-leading
climate targets for its operations in Europe,
which align directly with the EU’s aspiration
of 55% CO2 reduction by 2030. Cemex has
also committed to become a net-zero CO2
company by 2050. CO2 reduction goals,
innovative technologies, and considerable
capital investments have to be deployed.
Since the EU emissions training system (ETS)
began in 2005, over US$510 million of invest-
ments in Europe are either already executed
or planned in the next years to support our
CO2 reduction objectives. These investments
include, but are not limited to, the general
process switch from fossil fuels to lower-car-
bon alternatives, becoming more efficient in
the use of energy, sourcing alternative raw
materials that contribute to reducing overall
emissions or clinker factor, developing and
actively promoting lower-carbon products,
and the recent deployment of groundbreak-
ing hydrogen technology in all Cemex’s
European kilns. Cemex is also working close-
ly with alliances to develop industrial-scale
technologies toward its goal of a net-zero
carbon future. Strong and clear regulations
such as the EU Emissions Trading System and
Carbon Border Adjustment Mechanism give
companies like Cemex the confidence and
certainty to enable these investments.
1
Excludes discontinued operations in the Philippines,
Guatemala, and the Dominican Republic.
31
Cemex 2024 Integrated Report
Our Purpose
We are rapidly
transforming our
business through
climate action,
circularity, innovation,
and natural resource
management to
become a net-zero
CO2 company.
Environmental Excellence Goals and Highlights
Increasing Alternative
Fuels Consumption
reaching an
alternative fuels
rate of 37%
27
Million Tons
waste volume
processed through
Regenera
CO2
15% & 18%
cement Scope 1- and
2-specific CO2 emissions
reductions, respectively,
in the last four years
Breaking Barriers
in Clinker Factor
Reduction
achieved our lowest
clinker factor of 71.8%
Environmental
Excellence
Future in Action: Achieving Decarbonization Targets Toward a Net-Zero Future
Sustainable Products and Solutions: Expanding the Sustainability Features of Our Products
Decarbonizing Our Operations: Moving Rapidly to Achieve Our Ambitious Goals
Circular Economy: Repurposing Materials to Minimize Our Environmental Impact
Water, Biodiversity, and Air Quality: Building a Nature-Positive Future
Innovation and Partnerships: Catalyzing Innovation Across Our Business and Industry
Promoting a Green Economy: Using Our Voices to Accelerate Action in Our Industry
Social Commitment: Accelerating Our Responsibilities for a Just Transition
31
Cemex 2024 Integrated Report
4.9
Million Cubic Meters
freshwater saved
+60
Partners
working with us to
develop industrial-scale
net-zero CO2 solutions
Future in Action: Achieving
Decarbonization Targets
Toward a Net-Zero Future
Our Approach: Across the company and our value chain, we are
accelerating our decarbonization goals to achieve net-zero CO2
emissions by 2050.
Key Pillars in Our Future in Action Program
Sustainable Products and Solutions
We offer customers a comprehensive
portfolio of products and solutions with
five verifiable sustainable attributes,
including lower carbon, energy efficiency,
water conservation, recycled materials,
and design optimization.
In 2024, Vertua® products with lower-
carbon attributes accounted for 55%
of our total concrete sales and 63% in
cement. We have already reached our
2025 targets of 50% one year ahead.
Cemex became the first company in the
industry to provide third-party validated
environmental impact information
globally for all core products in all our
main markets.
ä Learn more about our sustainable products
and solutions.
Decarbonizing Our Operations
We have accelerated the decarbonization
of our operations in three of our core
businesses, reducing our Scope 1- and
2-specific CO2 emissions faster than our
global competitors. We are among the few
companies in our sector to have set Scope
3 targets verified by the Science Based
Targets initiative (SBTi).
Since the launch of our Future in Action
program in 2020, we reduced our cement
Scope 1- and 2-specific CO2 emissions
by 15% and 18%, respectively, a pace that
previously would have taken us 16 years to
accomplish.1,2
ä Learn more about our decarbonization efforts.
SDGs:
Our path to net-zero includes numerous
targets and key milestones that directly
contribute to achieving SDGs 9, 11, 12, and 13.
Future in Action is our global climate action
program to rapidly transform our business
through climate action, circularity, innovation,
and nature resource management to become
a net-zero CO2 company.
We have made significant progress since
we launched this program in 2020, reducing
cement Scope 1-specific net CO2 emissions
by 15% versus 2020. Since 2020, we have
invested an average of US$150 million per
year in our Future in Action efforts to reach
our intermediate targets by 2030.
Contents
Our Company
Our Strategy
Financial Performance
Environmental Excellence
• Future in Action: Achieving
Decarbonization Targets
Toward a Net-Zero Future
Sustainable Products and Solutions:
Expanding the Sustainability
Features of Our Products
Decarbonizing Our Operations:
Moving Rapidly to Achieve Our
Ambitious Goals
Circular Economy: Repurposing
Materials to Minimize Our
Environmental Impact
Water, Biodiversity, and Air Quality:
Building a Nature-Positive Future
Innovation and Partnerships:
Catalyzing Innovation Across
Our Business and Industry
Promoting a Green Economy:
Using Our Voices to Accelerate
Action in Our Industry
Social Commitment: Accelerating
Our Responsibilities for a
Just Transition
Stakeholder Engagement
Governance
Appendix
32
Cemex 2024 Integrated Report
1
Compared to our 2020 baseline.
2 Like-for-like, excluding discontinued operations.
Contents
Our Company
Our Strategy
Financial Performance
Environmental Excellence
• Future in Action: Achieving
Decarbonization Targets
Toward a Net-Zero Future
Sustainable Products and Solutions:
Expanding the Sustainability
Features of Our Products
Decarbonizing Our Operations:
Moving Rapidly to Achieve Our
Ambitious Goals
Circular Economy: Repurposing
Materials to Minimize Our
Environmental Impact
Water, Biodiversity, and Air Quality:
Building a Nature-Positive Future
Innovation and Partnerships:
Catalyzing Innovation Across
Our Business and Industry
Promoting a Green Economy:
Using Our Voices to Accelerate
Action in Our Industry
Social Commitment: Accelerating
Our Responsibilities for a
Just Transition
Stakeholder Engagement
Governance
Appendix
33
Cemex 2024 Integrated Report
Circular Economy
We are expanding the repurposing of
our three main waste streams to secure
alternative fuels and raw materials, as well
as create value through waste management.
Since the launch of our Regenera business
in 2023, we’ve repurposed nearly 58 million
tons of municipal and industrial waste;
construction, excavation, and demolition
materials; and by-products like fly ash and
slag from other industries.
ä Learn more about our circular
economy principles.
Water, Biodiversity, and Air Quality
We’re optimizing our water usage and
reducing our freshwater withdrawal while
enhancing biodiversity in our quarries and
minimizing our impacts on air quality.
We prioritize sites with the highest water-
related and biodiversity risks. Water action
plans are in place in 40% of our extremely
high and high water-stressed zones.
Rehabilitation plans are developed for
100% of our quarries. We monitor 100% of
our clinker production through continuous
emission monitoring systems (CEMS) to
assess any effects on air quality.
ä Learn more about our water, biodiversity,
and air quality initiatives.
Innovation and Partnerships
We have an open innovation platform to
identify and develop new technologies,
establish strategic partnerships, and work
on innovative solutions needed to reach
net-zero CO2 emissions across our company
by 2050.
Cemex was the first in the cement industry
to produce clinker using solar energy and
the first to successfully turn CO2 into carbon
nanomaterials directly from flue gases. In
2024, our Rüdersdorf plant in Germany was
awarded a grant to develop a full-scale
carbon capture and storage project to help
us deploy this important CO2 abatement
technology at scale.
ä Learn more about our innovation
and partnerships.
Promoting a Green Economy
We advocate for frameworks that can help
accelerate and enhance the decarbonization
of the cement industry.
We support policies that align with circular
economy principles, promote the use of
lower-carbon products, establish market-
based carbon-pricing mechanisms,
facilitate investments in clean electricity, and
channel public funding for scaling up new
technologies.
ä Learn more about how we promote
a green economy.
Key Pillars in Our Future in Action Program (continued)
Contents
Our Company
Our Strategy
Financial Performance
Environmental Excellence
• Future in Action: Achieving
Decarbonization Targets
Toward a Net-Zero Future
Sustainable Products and Solutions:
Expanding the Sustainability
Features of Our Products
Decarbonizing Our Operations:
Moving Rapidly to Achieve Our
Ambitious Goals
Circular Economy: Repurposing
Materials to Minimize Our
Environmental Impact
Water, Biodiversity, and Air Quality:
Building a Nature-Positive Future
Innovation and Partnerships:
Catalyzing Innovation Across
Our Business and Industry
Promoting a Green Economy:
Using Our Voices to Accelerate
Action in Our Industry
Social Commitment: Accelerating
Our Responsibilities for a
Just Transition
Stakeholder Engagement
Governance
Appendix
34
Cemex 2024 Integrated Report
Validating Our Future in Action Goals
Cemex is among the first companies in the global cement industry to validate its 2030
and 2050 decarbonization goals through the Science Based Targets initiative (SBTi) for
alignment under a 1.5°C scenario, with the 1.5°C scenario, the most ambitious for the cement
industry. This validation includes Scope 1, 2, and 3 emission targets, allowing us to align with
the Paris Agreement objectives.
Scope 1
31% reduction
of CO2 emissions in cement to
430 net kg of CO2 per ton of
cementitious product1,2
<68%
clinker factor
>55%
alternative fuels
Scope 2
1
58% reduction
of CO2 emissions to 24 kg CO2 per
ton of cementitious product
Scope 3
1
25% reduction
of CO2 emissions per ton of
purchased clinker and cement
30% reduction
of CO2 emissions per ton of
transported products
40% reduction
of CO2 emissions per ton of
purchased fuels
42% reduction
of absolute CO2 emissions of
traded fuels
30% reduction
of CO2 emissions in concrete
to ~150 net cement direct kg of
CO2 per m3
Net-zero CO2
emissions across
the company
2050 Net-Zero CO2 Transition
1
Compared to our 2020 baseline.
2
A 47% reduction compared to 1990 baseline.
CO2
Concrete¹
Cement, Other Businesses, and Value Chain 2030 Targets
35
Cemex 2024 Integrated Report
Contents
Our Company
Our Strategy
Financial Performance
Environmental Excellence
Future in Action: Achieving
Decarbonization Targets
Toward a Net-Zero Future
• Sustainable Products and Solutions:
Expanding the Sustainability
Features of Our Products
Decarbonizing Our Operations:
Moving Rapidly to Achieve Our
Ambitious Goals
Circular Economy: Repurposing
Materials to Minimize Our
Environmental Impact
Water, Biodiversity, and Air Quality:
Building a Nature-Positive Future
Innovation and Partnerships:
Catalyzing Innovation Across
Our Business and Industry
Promoting a Green Economy:
Using Our Voices to Accelerate
Action in Our Industry
Social Commitment: Accelerating
Our Responsibilities for a
Just Transition
Stakeholder Engagement
Governance
Appendix
Sustainable Products and
Solutions: Expanding the
Sustainability Features
of Our Products
Our Approach: We continuously work to improve the sustainability
features of our products and solutions, seeking to address building
needs that lead to a carbon-neutral, sustainable, and circular future.
Vertua® Product Portfolio Offers Validated
Sustainable Attributes
We were the first in the industry to offer a net-zero CO2 concrete solution, Vertua® products.
Also, we became the first in our industry to provide third-party validated environmental
impact information globally for all core products in our main markets. In 2024, Vertua®
products accounted for 63% of our total cement sales and 55% of our total concrete sales.
Today, our Vertua® portfolio of products also features products with extended attributes
such as water conservation, design optimization, energy efficiency, and recycled materials.
These products aim to support our customers in meeting their net-zero targets, carbon
obligations, and sustainability requirements and certifications, while helping us achieve our
2050 net-zero CO2 goal.
Cemex Vertua® Product Portfolio With Sustainable Attributes
Vertua® Lower
Carbon
Vertua® Energy
Efficiency
Vertua® Water
Conservation
Vertua®
Recycled
Materials
Vertua® Design
Optimization
Lower CO2 footprint
Improved thermal
efficiency
Smart water
management and
usage
Reduced raw
material usage
Efficiency in
design and
construction
Products & Solutions
Vertua® Concrete
Classic, Plus, and Ultra;
Vertua® Cement Plus,
Ultra, and Supreme;
Evolution ECO; Vialow;
Ready Block Zero
Insularis®
Porofoam®
Pervia®
Hidratium®
Resilia®
As part of our Future in Action program,
we offer a comprehensive product
portfolio featuring lower-carbon and other
sustainable attributes. These offerings
aim to support a reduction in the carbon
footprint of construction projects, and we
promote their adoption through our sales
force and customer education programs
and tools.
VERTUA® PRODUCTS
KEY PERFORMANCE
INDICATORS
63%
of cement sales ahead
of our 2025 target of 50%
55%
of concrete sales ahead
of our 2025 target of 50%
43%
brand awareness among
customers of our
Vertua® products, which
continues to grow
Cemex’s Vertua® brand products
feature a sustainability fact label,
the first in the industry, which details
the product’s performance across a
range of sustainable attributes.
36
Cemex 2024 Integrated Report
Contents
Our Company
Our Strategy
Financial Performance
Environmental Excellence
Future in Action: Achieving
Decarbonization Targets
Toward a Net-Zero Future
• Sustainable Products and Solutions:
Expanding the Sustainability
Features of Our Products
Decarbonizing Our Operations:
Moving Rapidly to Achieve Our
Ambitious Goals
Circular Economy: Repurposing
Materials to Minimize Our
Environmental Impact
Water, Biodiversity, and Air Quality:
Building a Nature-Positive Future
Innovation and Partnerships:
Catalyzing Innovation Across
Our Business and Industry
Promoting a Green Economy:
Using Our Voices to Accelerate
Action in Our Industry
Social Commitment: Accelerating
Our Responsibilities for a
Just Transition
Stakeholder Engagement
Governance
Appendix
Environmental Impact Information
Provides Transparency
We provide meaningful product
environmental impact information for
greater transparency. Cemex is the first
company in the industry to provide the life-
cycle environmental impact information,
including CO2 emissions for our core
products across our main markets. In
2024, this information was provided for
100% of our cement products and 88% of
our ready-mix products. This disclosure
is customized by location and is useful
for architects, engineers, contractors,
and customers looking for sustainable
construction or green certifications. Our
environmental impact information is
presented in two ways:
• Environmental product declarations.
This provides real-time environmental
data on the Global Warming Potential
and other relevant environmental
impacts, such as acidification, abiotic
depletion, and eutrophication, among
others.
• CO2 carbon footprint. This
measurement tool calculates in detail
the environmental footprint of a product
in a particular location, providing a
much higher degree of accuracy than
other carbon calculator tools currently
available.
In 2024, we provided life-cycle
environmental impact information
for 100% of our cement products and
88% of our ready-mix products.
Industry-First Sustainability Fact Label
Cemex provides a fact label for products
under the Vertua® brand, which details the
product’s sustainability attributes. Each
attribute is explained to provide consumers
with context on the product’s benefits.
Building Sustainable Product Knowledge
Building Information Modeling
Our suite of free-to-use building information modeling (BIM) tools helps advance the use
of our portfolio of products with sustainable attributes. Available both online and through
our BIM plug-in for Autodesk Revit, a 3D building design and planning software, the tools
allow architects, engineers, and construction professionals to model a building or house
using Cemex products with sustainable attributes. The tools show how much material will be
required and compare products to determine which is best for a project and its sustainability
goals. In 2024, our BIM tools were deployed in the U.K., France, Germany, Poland, Mexico,
and Colombia with close to 1,500 registered users.
ä See how we’re educating our global sales force to become partners in sustainable construction
with our customers.
ä Learn how we’re expanding customer awareness of our products with sustainable attributes.
ä Explore our BIM tools that help model buildings and houses using our portfolio of products
with sustainable attributes.
LOWER CARBON
LOWER
REDUCTION
REDUCTION
REDUCTION
BASELINE
C25/30 concrete
50-70%
ULTRA
PLUS
CLASSIC
350
KgCO /M
+70%
140 KgCO /M
30-50%
MATERIAL REUSE &
WASTE MINIMIZATION
RECYCLED
AGGREGATES
RECYCLED MATERIALS
40%
WATER CONSERVATION
ZERO WATER REQUIRED
DURING CONSTRUCTION
100% OF WATER DRAINS
BACK TO THE NATURAL SOIL
90% OF THE WATER IN THE PRODUCTION
PROCESS IS NON-POTABLE
≥
BASELINE
ENERGY EFFICIENCY
97%
IMPROVEMENT
2.25W/m.K
0.07 W/m. k
DESIGN OPTIMIZATION
75-90%
m
IN STRUCTURAL ELEMENTS VS BASELINE
FOR CONVENTIONAL SCREED 7CM
15%
LEARN
MORE!
IMPROVED
THERMAL EFFICIENCY
SMART USE AND
MANAGEMENT OF WATER
EFFICIENCY IN DESIGN
AND CONSTRUCTION
37
Cemex 2024 Integrated Report
Contents
Our Company
Our Strategy
Financial Performance
Environmental Excellence
Future in Action: Achieving
Decarbonization Targets
Toward a Net-Zero Future
• Sustainable Products and Solutions:
Expanding the Sustainability
Features of Our Products
Decarbonizing Our Operations:
Moving Rapidly to Achieve Our
Ambitious Goals
Circular Economy: Repurposing
Materials to Minimize Our
Environmental Impact
Water, Biodiversity, and Air Quality:
Building a Nature-Positive Future
Innovation and Partnerships:
Catalyzing Innovation Across
Our Business and Industry
Promoting a Green Economy:
Using Our Voices to Accelerate
Action in Our Industry
Social Commitment: Accelerating
Our Responsibilities for a
Just Transition
Stakeholder Engagement
Governance
Appendix
Olympic Aquatic Centre, France
Cemex provided specialized concrete
solutions to build a state-of-the-art
swimming facility at Saint-Denis, France,
designed for both world-class competitions
and community use. This work also included
the construction of a pedestrian bridge.
The project used Vertua® concrete with
the lower-carbon attribute, along with a
range of specialized concrete mixes, such
as those containing recycled aggregates, as
well as civil engineering, architectural, self-
placing, and high-performance concretes.
Over 50 unique concrete mixes were used
to meet the facility’s need for durability,
aesthetic appeal, and compatibility with the
chlorinated swimming pool environment.
Snapdragon Stadium, U.S.
Cemex supplied Vertua® lower-carbon
concrete for the construction of a new
35,000-seat, multiuse facility for San
Diego State University in San Diego, CA.
The stadium, designed to be Leadership in
Energy and Environmental Design (LEED)
Gold certified, serves as the home for the
university’s Aztec Division 1 football program
and the San Diego Wave of the National
Women’s Soccer League.
Cemex Products in Action
Concrete’s durability and longer life cycle make it the ideal building material for lasting
and reliable structures. With sustainable attributes available, such as resilience, thermal
efficiency, and recyclability, concrete is the most-used man-made material in the world and
is second only to water as the world’s most consumed resource as it has no substitutes. We
are proud to highlight some of the projects around the globe using our products.
Salina Cruz Building Project, Mexico
Cemex created a turnkey residential building
project in Salina Cruz, Oaxaca, as a solution
for the relocation of families in the old Salina
Cruz, Oaxaca, airport. The project used
Vertua® pigmented concrete to build the
facility on land that was previously used as
an airport.
Ruta 40 Bogotá-Girardot Project, Colombia
Cemex built a road in the Ruta 40 Bogotá-
Girardot project along one of Colombia’s
most vital transportation corridors.
The project, which spans 145 km with
approximately 100 km of road ditches,
used more than 150,000 m3 of materials.
Sustainable features include the use of
recycled polyethylene terephthalate (PET)-
based macrofibers and 20% fly ash in the
concrete mix, along with Vertua® Optimized
by Design products to meet customer needs.
Photo courtesy of Concesionaria Vía Sumapaz
38
Cemex 2024 Integrated Report
Contents
Our Company
Our Strategy
Financial Performance
Environmental Excellence
Future in Action: Achieving
Decarbonization Targets
Toward a Net-Zero Future
Sustainable Products and Solutions:
Expanding the Sustainability
Features of Our Products
• Decarbonizing Our Operations:
Moving Rapidly to Achieve Our
Ambitious Goals
Circular Economy: Repurposing
Materials to Minimize Our
Environmental Impact
Water, Biodiversity, and Air Quality:
Building a Nature-Positive Future
Innovation and Partnerships:
Catalyzing Innovation Across
Our Business and Industry
Promoting a Green Economy:
Using Our Voices to Accelerate
Action in Our Industry
Social Commitment: Accelerating
Our Responsibilities for a
Just Transition
Stakeholder Engagement
Governance
Appendix
Decarbonizing Our Operations:
Moving Rapidly to Achieve
Our Ambitious Goals
Our Approach: In the short term, we are fast-tracking proven
technologies in our operations, allowing for a significant reduction
of our carbon emissions in a profitable manner.
Cemex Accelerates Decarbonization Efforts
2021
591
2022
562
2023
541
2024
-34%
526
1990
802
Cemex
Baseline
2020
-23%
620
SBTi
Baseline
2030
-47%
430
Target
64
5
31
Our record performance continues
in 2024:
• In 2024, we reduced our Scope 1-specific
net CO2 emissions per ton of cement by
15 kg compared to 2023, and we have
reached a 15% reduction since 2020.
• We continue to set historical company
records for alternative fuel use at 37% and
clinker factor at 71.8%.
• Our Scope 2 emissions have improved
significantly, being reduced to 44.7 kg CO2
per ton of cementitious, and our clean
electricity consumption was 34%.
• In our Scope 3 emissions, we reduced
our purchased fuels intensity for cement
plants by 15% as compared to 2020.
We are delivering significant CO2
reductions in the short term by
implementing proven technologies
across our operations in a
profitable manner.
DECARBONIZATION
KEY INDICATORS
Leading the
Cement Industry in
Decarbonization
reducing Scope 1- and 2-specific net
CO2 emissions per ton of cement
by 15% and 18%, respectively, since
the launch of our Future in Action
program, a pace that previously would
have taken 16 years to accomplish
Breaking Barriers
in Clinker Factor
achieved a company record in
clinker factor of 71.8% in 2024
Increasing Our
Alternative Fuels
Consumption
reducing our overall fuel consumption
by reaching an alternative fuels rate
of 37% in 2024
Specific Net CO2 Emissions
(kg CO2/ton of cementitious product)
Scope 1, 2, 3 Emissions
(percentage)
Scope 1
Scope 2
Scope 3
We are implementing several measures
to enhance our operations’ sustainability
practices:
• using alternative fuels with high
biomass content
• reducing clinker factor content in our
cementitious products
• utilizing decarbonated raw materials
to lower process emissions
• improving heat and electricity efficiency
• increasing our reliance on clean
electricity sources
39
Cemex 2024 Integrated Report
Contents
Our Company
Our Strategy
Financial Performance
Environmental Excellence
Future in Action: Achieving
Decarbonization Targets
Toward a Net-Zero Future
Sustainable Products and Solutions:
Expanding the Sustainability
Features of Our Products
• Decarbonizing Our Operations:
Moving Rapidly to Achieve Our
Ambitious Goals
Circular Economy: Repurposing
Materials to Minimize Our
Environmental Impact
Water, Biodiversity, and Air Quality:
Building a Nature-Positive Future
Innovation and Partnerships:
Catalyzing Innovation Across
Our Business and Industry
Promoting a Green Economy:
Using Our Voices to Accelerate
Action in Our Industry
Social Commitment: Accelerating
Our Responsibilities for a
Just Transition
Stakeholder Engagement
Governance
Appendix
Scope 1: Cemex Makes Gains in Key Areas
Key levers that have helped us significantly
advance in our decarbonization targets and
reduce our CO2 emissions:
• increasing the use of alternative fuels
with high biomass content rather than
conventional fossil fuels
• reducing clinker factor content in our
cementitious products
• increasing the use of decarbonated raw
materials in clinker production
• optimizing thermal efficiency in our kilns
• decarbonizing our global vehicle fleet
Alternative Fuels With High Biomass Content
Cemex works to replace fossil fuels with
alternative fuels like biomass and industrial
and municipal waste to power our kilns and
use waste products effectively. In 2024,
alternative fuels constituted 37% of our fuel
mix. We prioritize the use of alternative
fuels with a high biomass content, as these
fuels have already removed and absorbed
CO2 from the atmosphere and, when used
as a fuel, have a neutral impact on our
gross emissions. In 2024, biomass content
was close to 15% of our total fuel mix.
Alternative Fuels Across Geographies
By using alternative fuels to power our
kilns, we are reducing our reliance on car-
bon-intensive fossil fuels while supporting
our communities in waste management.
This also helps prevent municipal, com-
mercial, and industrial waste from going
into landfills so their recoverable energy
may be utilized. The most common alter-
native fuels are refuse-derived fuel (RDF),
agricultural waste, tire-derived fuel
(TDF), and alternative liquid fuels.
U.K. At our Rugby cement plant, a new
and more reliable feed system and the
incorporation of tires into our fuel mix
resulted in the plant reaching record
alternative fuel consumption of 85%.
Egypt. At our Assiut cement plant, our
team built an in-house dryer and sep-
arator to improve the quality and feed
rate of alternative fuels, enabling record
alternative fuels consumption. The plant
increased its alternative fuel substitution
rate by 5%–10% (depending on the fuel
mix) in 2024 while increasing thermal
efficiency by 2%–5% and reducing CO2
emissions by 2%.
Croatia. Located in an area with strict
regulations that limit the plant to use only
biomass materials, our Sveti Juraj cement
plant expanded its supply chain to increase
the availability of wood chips, a sustain-
able biomass, as an alternative fuel source.
The successful supply chain development
maximized the capabilities of the plant’s
alternative fuels feed system, enabling it to
increase its alternative fuel usage from 3%
to 24% for the first time in its history.
Panama. Our Calzada Larga plant in-
creased its alternative fuel and biomass
rates to 33% by boosting the consumption
of RDF, TDF, and rice husks available in
the country. This achievement was the
result of a joint effort between supply
development and consumption optimiza-
tion at the operation site.
Czech Republic. After investing approxi-
mately US$6 million to modernize
its EcoWaste Energy facility that supplies
RFD, our Prachovice cement plant in-
creased both the reliability and quality of
its alternative fuel supply while eliminating
its dependency on third-party suppliers.
1990
0.6
2010
20.4
2020
25.3
2021
29.2
2022
35.0
2023
36.8
2024
36.7
2030
Target
55.0
Alternative Fuels Rate
(percentage)
2024
Target
526
Target
2050 Net-Zero Transition
40
Cemex 2024 Integrated Report
Contents
Our Company
Our Strategy
Financial Performance
Environmental Excellence
Future in Action: Achieving
Decarbonization Targets
Toward a Net-Zero Future
Sustainable Products and Solutions:
Expanding the Sustainability
Features of Our Products
• Decarbonizing Our Operations:
Moving Rapidly to Achieve Our
Ambitious Goals
Circular Economy: Repurposing
Materials to Minimize Our
Environmental Impact
Water, Biodiversity, and Air Quality:
Building a Nature-Positive Future
Innovation and Partnerships:
Catalyzing Innovation Across
Our Business and Industry
Promoting a Green Economy:
Using Our Voices to Accelerate
Action in Our Industry
Social Commitment: Accelerating
Our Responsibilities for a
Just Transition
Stakeholder Engagement
Governance
Appendix
Clinker Factor
Clinker is the key component of cement, produced by
calcining together limestone, clay, and other materials
in a rotary kiln at high temperatures. For clinker factor
optimization, we use byproducts from other industries,
like blast furnace slag and fly ash, as alternatives to
clinker while maintaining product quality and durability.
We continue to make groundbreaking progress in
optimizing our clinker factor by achieving our lowest
historical clinker factor of 71.8% in 2024.
The successful results achieved and new initiatives to
further reduce our clinker factor include:
Clinker Factor
(percentage)
Clinker Micronization
This ultra-fine grinding process improves cement
properties by optimizing particle size distribution, which
reduces clinker factor by up to 50%. In 2024, three of our
plants executed plant upgrades and seven plants began
defining the cement at lab-scale.
Integral Cement
One of the main levers in reducing our clinker factor is the
use of integral cement, which uses powerful admixtures
that help reduce the clinker factor by more than 5%. In
2024, the U.S. region achieved a remarkable overall
integral cement production of 34%, well above the 2023
average production of 22%.
Calcined Clays
This is a lower-carbon alternative material compared with
traditional clinker. After showing good performance in
laboratory tests, we are conducting industrial trials using
calcined clays in different plants in all regions.
Mechanically Activated Clays
This process enhances the chemical reactivity of
materials by applying mechanical energy. This energy
transfer produces a random arrangement of molecules
(amorphization) in the material, leading to enhanced
cementitious activity and agglomeration of particles,
reducing the impact on water demand, and improving
cement performance.
2010
1990
76.0
85.4
2020
77.0
2021
75.2
2022
73.7
2023
72.3
2024
71.8
2030
Target
68.0
41
Cemex 2024 Integrated Report
Contents
Our Company
Our Strategy
Financial Performance
Environmental Excellence
Future in Action: Achieving
Decarbonization Targets
Toward a Net-Zero Future
Sustainable Products and Solutions:
Expanding the Sustainability
Features of Our Products
• Decarbonizing Our Operations:
Moving Rapidly to Achieve Our
Ambitious Goals
Circular Economy: Repurposing
Materials to Minimize Our
Environmental Impact
Water, Biodiversity, and Air Quality:
Building a Nature-Positive Future
Innovation and Partnerships:
Catalyzing Innovation Across
Our Business and Industry
Promoting a Green Economy:
Using Our Voices to Accelerate
Action in Our Industry
Social Commitment: Accelerating
Our Responsibilities for a
Just Transition
Stakeholder Engagement
Governance
Appendix
Decarbonated Raw Materials
Decarbonated raw materials, used to make
raw meal for producing clinker, contain
calcium oxide and lead to lower CO2
emissions when heated than when using
calcium carbonate. In 2024, we used 4.1%
of decarbonated raw materials in our raw
mix across our global operations, which is
equivalent to avoiding the emission of more
than 626,000 tons of CO2. Compared to
2023, we registered an increase of 8% in
the consumption rate of decarbonated
raw materials across our operations, with
our European operations achieving close
to 11% of decarbonated raw material use,
positioning this region at the forefront
of CO2 emissions reduction in our global
operations. In Croatia, we demonstrated
outstanding performance, with plants in
Sveti Juraj and Sveti Kajo achieving 80 kg of
CO2 avoided per ton of clinker, representing
an 18% substitution in raw meal. Additionally,
our plant in Alicante, Spain, surpassed
100 kg of CO2 avoided per ton of clinker,
demonstrating 22% substitution in raw meal.
Thermal Efficiency
Cemex has developed low-temperature and
low-CO2 clinkers for more than 20 years,
successfully producing novel clinkers with a
10%–20% lower CO2 footprint.
Maximizing thermal efficiency directly
translates to reduced fuel consumption,
lower production costs, and significantly
decreased carbon emissions, making it a key
factor in sustainable cement manufacturing.
Driving Down Our Own Fleet’s Emissions
As one of the largest ready-mix concrete
companies in the world, reducing our
transport emissions is vital to addressing
climate change, reducing our CO2 footprint,
and achieving our 2050 net-zero target.
We are focusing on several key areas,
including the use of lower-carbon trucks and
renewable fuels containing both diesel and
natural gas. We’re also retrofitting our trucks
with hybrid and zero-emission features
and scaling up our use of zero-emission
technologies, including battery electric, fuel
cell, and hydrogen.
We are an early adopter of low- and
zero-emissions equipment, such as lower-
CO2 cement discharge systems in the
U.K., electric mixer trucks in Germany,
and compressed natural gas (CNG) mixer
trucks in Mexico and the U.S.
As part of our efforts in 2024 to
decarbonize our fleet and switch toward
cleaner transport, we operated with:
• 25 fully electric trucks in Europe, Middle
East, and the Americas
• 600-plus CNG-powered trucks in Mexico
and the U.S.
• 800-plus on-highway and off-road units
using renewable diesel in the U.S.
• first test takeoff of hybrid-electric power
in Mexico
Renewable Fuels. The use of renewable
fuels, such as renewable diesel, biogas,
and biofuels, continues to be the primary
means for reducing our fleet emissions.
These renewable fuels are fully compatible
with our current fleet and, when used at
full concentration, can reduce up to 90% of
the carbon footprint from transportation.
In the U.S., our California operations are
leading this effort, with renewable diesel
fuel powering 76% of our fleet. We are also
working on short- and long-term agreements
to further expand its usage. In 2024, 18%
of our own transport fleet in France was
equipped to use B100 biodiesel, offering a
60% reduction in greenhouse gas emissions.
Natural Gas, Hybrid Technologies. We
expect our Mexico, U.S., and SCA&C (South
and Central America and the Caribbean)
operations to continue growing their CNG
fleet. In Mexico, 19% of our mixer trucks
are powered by CNG. Hybrid technologies
are being developed for power takeoff
applications. These greatly reduce
greenhouse gas emissions by powering
external equipment and auxiliary functions
using a battery-electric motor without
relying on the vehicle’s combustion engine.
Zero-Emissions Solutions. An early adopter
of fully electric trucks in Europe, the Middle
East, and Mexico, we’re working with
original equipment manufacturers (OEMs) to
make electric mixers economically feasible.
We have also deployed more than 1,400
hybrid or zero-emissions vehicles in our sales
fleet, mostly in Europe.
Fleet Digitalization and Data Management.
Cemex is using technology to better configure
machines, manage fleet aging, reduce fuel
burn, and improve fleet utilization.
Electromobility Solutions. While fully
electric heavy-duty trucks are not yet widely
available on an industrial scale, Cemex is
actively collaborating with OEMs to advance
net-zero transportation technologies.
Carbon Emissions From Concrete
Production
To reinforce our goal to fully decarbonize all
business lines by 2050, we have established
a target for 2030 to achieve a 30% reduction
in net CO2 emissions of the cement used to
produce a cubic meter of concrete compared
to our 2020 baseline. By 2024, we achieved a
20% reduction from 2020 levels, representing
a 44 kg of CO2 per m3 reduction, primarily
through enhancements to our ready-mix
composition, maintaining the strength and
performance our markets expect.
In 2024, we reduced our fleet’s
CO2 emissions by 5% compared
to 2023.
42
Cemex 2024 Integrated Report
Contents
Our Company
Our Strategy
Financial Performance
Environmental Excellence
Future in Action: Achieving
Decarbonization Targets
Toward a Net-Zero Future
Sustainable Products and Solutions:
Expanding the Sustainability
Features of Our Products
• Decarbonizing Our Operations:
Moving Rapidly to Achieve Our
Ambitious Goals
Circular Economy: Repurposing
Materials to Minimize Our
Environmental Impact
Water, Biodiversity, and Air Quality:
Building a Nature-Positive Future
Innovation and Partnerships:
Catalyzing Innovation Across
Our Business and Industry
Promoting a Green Economy:
Using Our Voices to Accelerate
Action in Our Industry
Social Commitment: Accelerating
Our Responsibilities for a
Just Transition
Stakeholder Engagement
Governance
Appendix
Scope 2: Cemex Reduces
Its Electricity Emissions
In 2024, we decreased our Scope
2-specific emissions using several main
initiatives to reach our goals:
• energy-efficiency improvements
• on-site project development, mainly with
solar and waste-heat recovery, through
power purchase agreements (PPAs) and
our own capital investments
• agreements with developers and utilities
for renewable supply from off-site
renewable sources, including hydro,
wind, and solar
Our 2030 target, as validated by the
Science Based Targets initiative (SBTi)
under the 1.5°C scenario, is to reduce our
Scope 2 emissions by 58% from our 2020
baseline so that we would be emitting
no more than 24 kg CO2 per ton of
cementitious material. As of December
2024, our Scope 2-specific emissions were
reduced by 18% compared to our 2020
baseline.
Relevant Clean Electricity
Initiatives in 2024
• U.S. Cemex’s South Florida operations
subscribed to nearly 10 megawatts of
solar energy capacity—equivalent to the
annual average energy consumption of
nearly 2,000 homes—through Florida
Power & Light Company’s Solar Together®
program. Also, during 2024, Cemex’s
Clinchfield cement plant in Georgia signed
an agreement to purchase solar energy,
which is expected to offset about 10,000
metric tons of indirect CO2 emissions per
year, accelerating the company’s 2030
Scope 2 goal of reducing indirect electricity
CO2 emissions in cement operations by 58%
from a 2020 baseline.
• Mexico. Emissions in Mexico decreased by
20% compared to the previous year due to
a rebalancing of our supply portfolio.
• SCA&C Through the purchase of
Renewable Energy Certificates,
Nicaragua reached 100% clean electricity
consumption in 2024. In Colombia, Cemex
entered into a renewable power purchase
agreement that supplies 5% of our cement
plants’ consumption. In 2024, Cemex also
signed a five-year agreement to purchase
clean electricity starting in 2026 that will
cover around 30% of the electric power
required at Colombia cement plants.
• EMEA. In Germany, Cemex
commissioned a waste-heat recovery
system at its Rüdersdorf plant to reduce
energy consumption, improve process
efficiency, lower operating costs, and
decrease CO2 emissions. In Poland, we
have reached an agreement to develop
on-site solar projects to supply electricity
to our Chelm, Rudniki, and Gdynia
cement plants and several other ready-
mix concrete plants in the future.
U.S. EPA ENERGY STAR®
Partner of the Year for
Sixth Consecutive Year
In 2024, Cemex was recognized by
the U.S. Environmental Protection
Agency (EPA) as a 2024 ENERGY
STAR® Partner of the Year for the
sixth consecutive year. This award
for Sustained Excellence in Energy
Management underscores our
unyielding commitment to energy
efficiency, sustainability, and
environmental stewardship in our
operations across the U.S.
Notable projects contributing to
Cemex’s ENERGY STAR Partner
of the Year achievement include
sourcing 100% renewable electricity
at our Demopolis, AL, cement
plant; launching more than 30
thermal and electrical efficiency
upgrade projects; replacing dozens
of ready-mix trucks and transport
tractors with low-emission, CNG
vehicles; and replacing three diesel-
powered locomotives with near-
zero-emissions locomotives, among
other projects.
In EMEA, 341 of our sites had
an energy management system
verified to ISO 50001 in 2024. This
represents more than 50% of our
operations and 100% of our cement
operations in the region.
Copyright © 2020 Maarten Zeehandelaar/Shutterstock
43
Cemex 2024 Integrated Report
Contents
Our Company
Our Strategy
Financial Performance
Environmental Excellence
Future in Action: Achieving
Decarbonization Targets
Toward a Net-Zero Future
Sustainable Products and Solutions:
Expanding the Sustainability
Features of Our Products
• Decarbonizing Our Operations:
Moving Rapidly to Achieve Our
Ambitious Goals
Circular Economy: Repurposing
Materials to Minimize Our
Environmental Impact
Water, Biodiversity, and Air Quality:
Building a Nature-Positive Future
Innovation and Partnerships:
Catalyzing Innovation Across
Our Business and Industry
Promoting a Green Economy:
Using Our Voices to Accelerate
Action in Our Industry
Social Commitment: Accelerating
Our Responsibilities for a
Just Transition
Stakeholder Engagement
Governance
Appendix
Scope 3: Ambitious Goals
Build Upon Successful
Progress
We have established ambitious Scope 3
goals, building upon our 2020 baseline,
to further drive our commitment to
sustainability. These include a 25% reduction
in CO2 emissions per ton of purchased
clinker and cement, 30% per ton of
transported product, 40% reduction in
Scope 3 emissions per ton of purchased
fuels, and 42% reduction in absolute Scope
3 emissions from the use of traded fuels.
These targets reflect our dedication to
reducing our environmental impact across
our value chain and aligning with global
efforts to combat climate change.
All targets have been validated by SBTi
using a 2020 baseline as a reference year.
Emissions in Third-Party Transportation Services
Cemex is partnering with EcoTransit World to monitor CO2 emissions from distribution
services. Through this unified global effort, we aim to reduce emissions by enhancing logistics
efficiency and promoting lower-carbon fuels while promoting transparency and inspiring
industry-wide action.
Performance in 2024
2020
(baseline)
2022
2023
2024
Purchased clinker and cement (Kg CO2/ton)
850
853
845
819
Purchased fuels (Kg CO2/ton)
255
222
207
205
Traded fuels (tons CO2)
5,730,384
3,906,030
3,598,559
1,980,527
44
Cemex 2024 Integrated Report
Contents
Our Company
Our Strategy
Financial Performance
Environmental Excellence
Future in Action: Achieving
Decarbonization Targets
Toward a Net-Zero Future
Sustainable Products and Solutions:
Expanding the Sustainability
Features of Our Products
Decarbonizing Our Operations:
Moving Rapidly to Achieve Our
Ambitious Goals
• Circular Economy: Repurposing
Materials to Minimize Our
Environmental Impact
Water, Biodiversity, and Air Quality:
Building a Nature-Positive Future
Innovation and Partnerships:
Catalyzing Innovation Across
Our Business and Industry
Promoting a Green Economy:
Using Our Voices to Accelerate
Action in Our Industry
Social Commitment: Accelerating
Our Responsibilities for a
Just Transition
Stakeholder Engagement
Governance
Appendix
Circular Economy:
Repurposing Materials
to Minimize Our
Environmental Impact
Our Approach: We are taking comprehensive actions to lead
the transition toward a circular economy by promoting the
preservation of natural resources through recycling materials
to maximize their value and reduce waste by design.
Instilling Circularity Principles Across Our Operations
Under this model, we’re working to decouple growth and value generation from the
consumption of finite resources. We offer services to manage and sort discarded
materials, substitute fossil fuels in our operations with alternative materials, produce
high-quality products that repurpose industry by-products, and partner with
circularity leaders to advance circular solutions.
We are evolving our manufacturing processes to recycle construction, demolition, and
excavation materials (CDEM) as aggregates and raw materials, replacing fossil fuels
with waste-derived fuels to power our operations. We are also designing products that
incorporate other industries’ by-products and waste-derived resources, reducing our
reliance on virgin materials.
In 2024, Cemex repurposed 27 million tons of waste, which is roughly equivalent to
the municipal waste produced annually in the U.K. These 27 million tons are mainly
external waste and by-products from other industries and cities. By recycling and
repurposing these materials, Cemex reduces its reliance on virgin materials and diverts
waste from reaching landfills, rivers, and oceans, which helps avoid damage to the
environment. By 2030, we aim to increase the amount of waste and by-products we
repurpose by more than 50%.
Integrating waste materials as fuels and raw materials
is a powerful strategy to reduce our carbon footprint
and tackle global challenges such as CO2 emissions and
biodiversity loss.
KEY INDICATORS
27 Million Tons
of waste repurposed
through Regenera
+140 Centers
Worldwide
where we
receive and
transform waste
+13 Million Tons
of construction,
demolition, and
excavation materials
processed in 2024
Transform
Construction, Demolition,
and Excavation Materials
(CDEM)
• Demolished concrete, blocks,
bricks and returned concrete
Circulate
By-products
• Alternative Raw Materials
• Decarbonated raw materials
Recover
Municipal & Industrial Waste
• Alternative fuels
Cemex Partners With Ellen MacArthur Foundation to
Accelerate Circular Economy Efforts
In 2024, we proudly announced our partnership with the Ellen MacArthur
Foundation, the world’s leading circular economy network, which aims to
work with ambitious, like-minded organizations globally. As a part of the
foundation’s Circular Leaders Group for the Built Environment, Cemex strives
to continue adopting and expanding circular economy principles into the cement
supply chain through our Regenera business while leveraging science-based
research, advocacy, and coalition-building initiatives to drive circularity forward
in the building materials industry.
Circularity by Design
The circular economy is a system
designed to keep materials from
becoming waste.
In a circular economy, products and
materials are kept in circulation through
processes like maintenance, reuse,
refurbishment, remanufacturing,
recycling, and composting, all while
supporting nature’s regeneration.
The circular economy tackles climate
change and other global challenges, like
biodiversity loss, waste, and pollution,
by reducing the need for finite natural
resources.
45
Cemex 2024 Integrated Report
Contents
Our Company
Our Strategy
Financial Performance
Environmental Excellence
Future in Action: Achieving
Decarbonization Targets
Toward a Net-Zero Future
Sustainable Products and Solutions:
Expanding the Sustainability
Features of Our Products
Decarbonizing Our Operations:
Moving Rapidly to Achieve Our
Ambitious Goals
• Circular Economy: Repurposing
Materials to Minimize Our
Environmental Impact
Water, Biodiversity, and Air Quality:
Building a Nature-Positive Future
Innovation and Partnerships:
Catalyzing Innovation Across
Our Business and Industry
Promoting a Green Economy:
Using Our Voices to Accelerate
Action in Our Industry
Social Commitment: Accelerating
Our Responsibilities for a
Just Transition
Stakeholder Engagement
Governance
Appendix
Enabling a Circular Future
With over 20 years of experience in waste
management, Cemex launched Regenera
in 2023 to provide circularity solutions,
including the reception, management,
recycling, and co-processing of waste
materials. Today, Regenera manages
waste materials in more than 140 facilities
worldwide. The facilities are strategically
located near major cities, allowing
Cemex to leverage its global expertise
and infrastructure to offer a wide range
of tailored services to municipalities and
industrial customers.
Cemex has a strong position in the
building materials industry to become
a collaborative enabler and facilitate
the use of valuable resources within a
circular economy.
Regenera successfully addresses waste
challenges by forming alliances with local
governments and engaging key stakeholders
in the circular economy. Through this
collaboration, we repurpose diverse end-of-
life materials, recover recyclables for reuse,
and establish closed-loop systems between
industries. This approach fosters sustainable
economic growth and scalability while
extending the benefits of a circular economy
beyond Cemex.
Through Regenera, Cemex demonstrates
its commitment to promoting the transition
toward a sustainable future and a circular
economy that prioritizes waste reduction,
material reuse, and reduced reliance on
nonrenewable resources.
Municipal and Industrial Waste
Every year, society generates more than
2 billion tons of waste worldwide. Most
municipal and industrial waste is disposed
of in landfills. This leads to soil and water
pollution and creates methane, which is up
to 80 times more environmentally harmful
than carbon dioxide.
In 2024, we repurposed an amount of
waste equivalent to 30% of Mexico City’s
municipal solid waste. Additionally, we
continue our efforts in Queretaro, with the
goal of making it the first zero-waste-to-
landfill city in Mexico. Central to this initiative
is the Broquers plant, which is owned and
managed by Regenera. Since Regenera
launched operations in the city two years
ago, the plant has nearly tripled its capacity
and now processes close to 300,000 tons of
waste annually which accounts for 90% of
the waste collected by the municipality.
We also expanded our footprint with two
new Regenera plants: one in Puebla, in
collaboration with PASA and the Puebla local
government, and another in Mexico City, in
collaboration with a local government facility.
Our total of five materials and industrial
waste material sites enable circularity for
other industries and communities.
Benefits of a Circular Economy
Avoids methane emissions
from landfills
Preserves nature
and biodiversity
Reduces demand for
virgin raw materials
CO2 Decreases carbon
emissions
Improves resource
efficiency
Creates new business
opportunities
The Regenera Seal: A
Cultural Transformation and
Commitment to Circularity
We developed the Regenera Seal to
signal the transition of our operations
into zero-waste-to-landfill facili-
ties. Our seal promotes a circularity
mindset across the organization. At
the same time, our framework seeks to
implement innovative strategies as we
aim to extend resource use along the
value chain and eliminate waste from
the system.
In July 2024, our Calzada Larga
cement plant in Panama was
distinguished with the Regenera
Seal at the Platinum level, becoming
the first operation to achieve
the framework’s highest level of
recognition. In 2024, eight other
facilities—seven in the SCA&C region
and one in the U.K.—achieved zero-
waste-to-landfill status and earned
the Regenera Seal.
46
Cemex 2024 Integrated Report
Contents
Our Company
Our Strategy
Financial Performance
Environmental Excellence
Future in Action: Achieving
Decarbonization Targets
Toward a Net-Zero Future
Sustainable Products and Solutions:
Expanding the Sustainability
Features of Our Products
Decarbonizing Our Operations:
Moving Rapidly to Achieve Our
Ambitious Goals
• Circular Economy: Repurposing
Materials to Minimize Our
Environmental Impact
Water, Biodiversity, and Air Quality:
Building a Nature-Positive Future
Innovation and Partnerships:
Catalyzing Innovation Across
Our Business and Industry
Promoting a Green Economy:
Using Our Voices to Accelerate
Action in Our Industry
Social Commitment: Accelerating
Our Responsibilities for a
Just Transition
Stakeholder Engagement
Governance
Appendix
Construction, Demolition, and Excavation Materials
Construction, Demolition, and Excavation Materials (CDEM) are highly relevant due to
their environmental, economic, and societal benefits. They decrease the demand for virgin
resources, lowering energy consumption and greenhouse gas emissions associated with their
extraction and production. Additionally, this practice supports sustainable construction by
driving innovation in material reuse and helping move toward a circular economy, ultimately
contributing to a more sustainable and environmentally responsible construction industry.
As a leading provider of construction materials, Cemex capitalizes on its Regenera business
to continue expanding the use of CDEM and providing solutions through the use of recycled
materials as aggregates or repurposed for land rehabilitation. We work together with public
and private partners to establish a strong value chain and framework needed to increase
the use of recycled aggregates.
In 2024, we recovered more than 13 million tons of CDEM—a 28% increase compared to
2023. We also successfully reintroduced approximately 11% of managed CDEM materials
into the market, transforming them into recycled aggregates for road base applications
and ready-mix concrete production.
Transforming CDEM into useful
commodities happens at different scales,
from reprocessing remnant concrete to
receiving and recycling excavation materials
from significant infrastructure projects.
U.K. In 2024, we received over 1 million tons
of tunneling spoil from the HS2 project,
Britain’s new high-speed railway connecting
London to Birmingham, England. We
demonstrated how the construction industry
can effectively manage infrastructure waste
by repurposing it for land restoration, filling
two quarry voids.
Germany. In 2024, we acquired a majority
stake in RC-Baustoffe Berlin from the
HEIM Group, enabling facilities to process
and distribute recycled aggregates in
Germany. The recycling facility can process
up to 800,000 tons of materials per year,
which Regenera will turn into repurposed
aggregates for concrete production. In
addition, RC-Baustoffe Berlin operates the
first plant to permanently store biogenic CO2
in recycled mineral waste in Germany.
Industrial By-Products
We value waste by-products from other
industrial processes as alternative raw
materials. This helps our partners reduce
waste in their operations and enables
Cemex to preserve natural resources and
reduce its CO2 footprint. Together we can
protect the environment and contribute to a
more sustainable future.
In 2024, we replaced more than 9 million
tons of raw materials with alternative by-
products and waste from other industries.
In the cement and ready-mix production
process, we replaced some clinker with
by-products, including fly ash and slags, as
cement substitutes.
In our operations, we aim to maximize the
reuse of cement kiln dust in the production
loop. When this process is not possible, we
make efforts to repurpose this by-product
for alternative uses such as soil or road
stabilization, fertilizer enhancement, or
de-icing agent for roads. Additionally, we
have crafted our Isocycle additive that
enables us to transform waste concrete
into a value-added material which can be
reintroduced into the value chain. Since
2023, we have been improving our waste
categorization, including hazardous and
nonhazardous materials, and strengthening
our measurement systems to make them
more robust and precise.
Since the launch of Regenera, we
have redefined our approach to
waste, viewing it as an innovative
resource that reduces our reliance
on finite materials. This shift enables
us to produce sustainable products,
positioning us as key enablers of a
more sustainable future.
47
Cemex 2024 Integrated Report
Contents
Our Company
Our Strategy
Financial Performance
Environmental Excellence
Future in Action: Achieving
Decarbonization Targets
Toward a Net-Zero Future
Sustainable Products and Solutions:
Expanding the Sustainability
Features of Our Products
Decarbonizing Our Operations:
Moving Rapidly to Achieve Our
Ambitious Goals
Circular Economy: Repurposing
Materials to Minimize Our
Environmental Impact
• Water, Biodiversity, and Air Quality:
Building a Nature-Positive Future
Innovation and Partnerships:
Catalyzing Innovation Across
Our Business and Industry
Promoting a Green Economy:
Using Our Voices to Accelerate
Action in Our Industry
Social Commitment: Accelerating
Our Responsibilities for a
Just Transition
Stakeholder Engagement
Governance
Appendix
Water, Biodiversity, and Air Quality:
Building a Nature-Positive Future
KEY INDICATORS
4.9 Million Cubic Meters
freshwater saved during 2024
58%
of our active quarries
with habitat mapping
100%
clinker production with continuous
emissions monitoring systems to
monitor major air emissions
Protecting Humanity’s Most Precious Resource: Water
Water is a finite and essential resource for life, ecosystems, and economic development. It is
also a key ingredient to make concrete and a basic element in our manufacturing process. To
reduce our water usage and alleviate strain on local water resources, we are transitioning to
alternative water sources, developing water system maintenance routines, installing water
recycling systems, and monitoring discharge quality, particularly at sites with the highest
water-related risks.
Our Approach: At Cemex, we aim for our operations to have a positive
impact on nature and society. We work to optimize our water usage,
reduce freshwater withdrawals, and enhance biodiversity in and around
our quarries while also minimizing our impacts on air quality.
Our nature strategy encompasses water, biodiversity conservation, and
regeneration initiatives, as well as air quality enhancement.
48
Cemex 2024 Integrated Report
Contents
Our Company
Our Strategy
Financial Performance
Environmental Excellence
Future in Action: Achieving
Decarbonization Targets
Toward a Net-Zero Future
Sustainable Products and Solutions:
Expanding the Sustainability
Features of Our Products
Decarbonizing Our Operations:
Moving Rapidly to Achieve Our
Ambitious Goals
Circular Economy: Repurposing
Materials to Minimize Our
Environmental Impact
• Water, Biodiversity, and Air Quality:
Building a Nature-Positive Future
Innovation and Partnerships:
Catalyzing Innovation Across
Our Business and Industry
Promoting a Green Economy:
Using Our Voices to Accelerate
Action in Our Industry
Social Commitment: Accelerating
Our Responsibilities for a
Just Transition
Stakeholder Engagement
Governance
Appendix
Water Action Plans
Cemex has developed water action plans (WAPs) to enhance water management and
conservation across our global operations, particularly in water-stressed areas. These plans
offer a customized set of response actions to manage water effectively and mitigate specific
water risks for each community based on recommendations from the Water Risk Filter
tool from the World Wildlife Fund. Our plans take into consideration a Water Stress Map
Assessment conducted with the Aqueduct tool from the World Resources Institute, which
analyzed the water stress level of 1,500-plus cement, ready-mix, and aggregates sites.
Cemex is committed to implementing WAPs in 100% of its sites located in high-water stress
areas by 2030. In 2024, 40% of our operations located in water-stressed zones, comprising
sites in extremely high and high water-stressed zones, have implemented WAPs.
Total Water (million m3)
WITHDRAWALS
50.1
CONSUMPTION
37.4
Total Consumption by Product
Freshwater Withdrawal Reduction, Non-Freshwater Use
We are on track to meet our 2030 freshwater withdrawal reduction targets, which
include a 20% reduction in freshwater withdrawal for cement, 10% reduction for ready-
mix concrete, and 15% reduction for aggregates versus our 2021 baseline. To achieve
these targets, we are working on gradually increasing the use of non-freshwater, such
as alternative water from treatment plants and other industries (e.g., bottling and
beverages) and rainwater we are able to collect or recover.
CEMENT
20
READY-MIX
CONCRETE
10
AGGREGATES
15
2030 Targets on Specific Freshwater
Withdrawals Reduction (percentage)
262 l/ton
Cement
Ready-Mix
Aggregates
140 l/ton
235 l/m3
Since 2021, we have
saved close to
13 million cubic meters
of freshwater,
which represents the
annual consumption
of 350,000 people.
Working with leading sustainability consulting firm Environmental Resources
Management (ERM), Cemex has developed a global zero freshwater and zero
discharge framework and an associated measurement protocol. In 2024, we
launched our internal Zero Freshwater Certification program based on this protocol.
This internal certification requires a site to either use zero freshwater or have zero
discharge, comply with local regulations, and adhere to company policies. Since the
program’s launch, 12 sites worldwide, including cement and ready-mix operations,
have completed this verification with other operations working toward this goal.
• Mexico. In 2024, 185 facilities out of 217—or 85% of our plants nationwide—utilize
alternative water.
• Colombia. At our Santa Rosa cement plant, more than 90% of the water required
for cement production originates from non-freshwater sources, including rainwater,
recycling systems, and zero water discharges.
Freshwater Use by the Numbers in 2024
1
Water Awareness and Internal Capacity
Increase the knowledge, the context of hydric stress, and understand
the potential risks and opportunities. Water policy defined, water stress
studies carried out and future scenarios analysis is done.
2
Operations, Performance, Measurement and Management
Implement and follow the theoretical knowledge of Cemex’s internal
procedures and international guidelines through practical examples on all our
operations. Measurement standardization and performance templates.
3
Internal Efficiency and Cemex Solutions
Share and understand Cemex’s best practices compiled globally
and analyze replicability.
4
Value Chain Engagement
Engage with the value chain and share the share the relevance of their
participation in Cemex’s water footprint. Supplier program, mapping
and prioritization, and continuous improvement.
5
Stakeholder Engagement
Increase the knowledge of the water problem that communities face
and how to deal with it from a proactive approach.
49
Cemex 2024 Integrated Report
Contents
Our Company
Our Strategy
Financial Performance
Environmental Excellence
Future in Action: Achieving
Decarbonization Targets
Toward a Net-Zero Future
Sustainable Products and Solutions:
Expanding the Sustainability
Features of Our Products
Decarbonizing Our Operations:
Moving Rapidly to Achieve Our
Ambitious Goals
Circular Economy: Repurposing
Materials to Minimize Our
Environmental Impact
• Water, Biodiversity, and Air Quality:
Building a Nature-Positive Future
Innovation and Partnerships:
Catalyzing Innovation Across
Our Business and Industry
Promoting a Green Economy:
Using Our Voices to Accelerate
Action in Our Industry
Social Commitment: Accelerating
Our Responsibilities for a
Just Transition
Stakeholder Engagement
Governance
Appendix
Enhancing Our Biodiversity Approach
to Achieve a Nature-Positive Future
As part of our nature strategy, we are committed to enhancing biodiversity within
and around our quarries. We are also developing local biodiversity action plans
(BAPs) to provide us with comprehensive guidance on being responsible stewards of
our natural habitats.
All our biodiversity efforts and policies align with the Kunming-Montreal Global
Biodiversity Framework agreement and the Global Cement and Concrete Association
(GCCA) sustainability guidelines.
Additionally, we continue habitat mapping, quarry rehabilitation, and integration of
circular principles across our operations to reduce our reliance on natural resource
extraction and advance our efforts to becoming nature positive.
Quarry Rehabilitation Plans
Quarry rehabilitation is a crucial process to restore and enhance the natural
environment after quarrying activities have taken place. It begins with an initial site
assessment, followed by the development and implementation of a biodiversity
management plan, and concludes with performance measurement and reporting.
As of 2024, 100% of all active Cemex quarries have rehabilitation plans in place.
Biodiversity Action Plan
Cemex’s biodiversity action plans (BAPs) are designed to guide our sites in developing
practical steps and processes to conserve and promote valuable habitats, species, and
ecosystem services. Our BAPs focus on enhancing biodiversity management near high-
biodiversity-value areas defined as high priority. As of 2024, 43 of the 51 sites located in
high-priority-biodiversity-value areas have implemented a BAP which is in line to achieve our
2030 goal of having BAPs in place in 100% of active sites identified as high priority.
Impact Assessment
Before starting any earthwork, we carry out an environmental
impact analysis to map potential risks and extraction possibilities.
Restoration / Rehabilitation
During and after extraction activities in the quarries, we implement a rehabilitation
plan. The goal is to help restore the ecosystem services to where they were before
extraction, through indigenous vegetation and the creation of reservations.
Avoidance and Minimization of Impact
We aim to carry out activities with the least potential risk to avoid or minimize
impact; for example, stopping extraction where biodiversity is especially high.
Compensation
Lastly, for any part of the impact area that could not be restored or
rehabilitated, compensation is sought with a biodiversity action plan.
Prerequisites
Compliance with legal and other requirements
Preliminary desktop assessment Identify
available resources (financial and others).
Prioritization
Prioritize species, vegetation communities,
and ecosystem services.
Stakeholders Mapping and Engagement
Identify and analyze. Engage with key
stakeholders.
Action Plan Objectives and Targets
Establish objectives, targets, actions,
and deadlines. Allocate resources and
responsibilities and set appropriate
monitoring tools.
Partners
Engage ecological experts and partners.
Efforts to engage with BirdLife local partner.
Implementation
Appoint a biodiversity leader, align
actions with internal procedures, and
involve stakeholders and partners.
Development of the Biodiversity Baseline
Baseline survey of biodiversity and impact
assessment and consolidate and share
resulting data.
Monitoring and Evaluation
Follow up implementation and budget,
compare performance with baseline, and
maintain communication with stakeholders.
Reporting
Identify whom to report and how. Start
with internal communication, and report
data externally.
1
6
7
8
9
2
3
4
5
50
Cemex 2024 Integrated Report
Contents
Our Company
Our Strategy
Financial Performance
Environmental Excellence
Future in Action: Achieving
Decarbonization Targets
Toward a Net-Zero Future
Sustainable Products and Solutions:
Expanding the Sustainability
Features of Our Products
Decarbonizing Our Operations:
Moving Rapidly to Achieve Our
Ambitious Goals
Circular Economy: Repurposing
Materials to Minimize Our
Environmental Impact
• Water, Biodiversity, and Air Quality:
Building a Nature-Positive Future
Innovation and Partnerships:
Catalyzing Innovation Across
Our Business and Industry
Promoting a Green Economy:
Using Our Voices to Accelerate
Action in Our Industry
Social Commitment: Accelerating
Our Responsibilities for a
Just Transition
Stakeholder Engagement
Governance
Appendix
Third-Party Certifications
Our strategic approach extends beyond
our BAPs near high-priority-biodiversity
areas as we pursue third-party
certifications to validate our conservation
efforts at sites outside these locations.
Our conservation activities bring our
employees and communities together in
wildlife enhancement campaigns. Also,
our initiatives raise awareness of how our
industry can operate while minimizing its
impact on biodiversity and supporting the
integrity of natural habitats.
We currently have 36 sites in seven countries
with third-party conservation certifications.
These certifications are issued by leading
environmental organizations such as the
Wildlife Habitat Council, Ecocert, Texan
by Nature, and Croatia’s Ministry of
Environment and Energy, among others.
Aiming for Nature Positivity
We continue to define nature-positive
baselines for all our operations with plans
to demonstrate relevant progress by
2030. We are working toward restoring
ecosystems to help nature recover in
all our quarries by 2050.
To establish a baseline to measure our
progress toward a nature-positive strategy,
we began habitat mapping in the U.S.,
Mexico, Europe, Middle East, and Africa
(EMEA), and South and Central America
and the Caribbean (SCA&C) regions. As
of 2024, 58% of our sites had conducted
habitat mapping.
Our Efforts in Habitat
Mapping and Restoration,
Species Conservation
During 2024
U.S. The Cemex Nature Center, a 13-hectare
space in New Braunfels, TX, features
biodiversity conservation initiatives and
serves as a community educational space. In
2024, about 1,500 guests visited the site, and
we have donated 1,800 kg of produce from
its vegetable garden to local food banks.
Mexico. Located in the heart of La Huasteca
Potosina in San Luis, Mexico, a former clay
quarry is now a conservation and education
site showcasing a highly biodiverse area that
is home to hundreds of animals and plant
species. We transformed the site into a safe
space for passing species as we monitor
populations and promote natural habitat
conservation through partnerships and
education programs.
EMEA
• France. Progress in mapping our 32
quarries to develop a nature-positive
baseline for habitats and species.
• Germany. Our Rüdersdorf quarry
surveyed unique biotopes in detail,
mapping a large number of different
habitats found on-site.
• U.K. At our Halkyn quarry in North Wales,
we are piloting a program to understand
the impact of a nature-positive approach.
• U.K. The Chalk Grasslands is part of our
Kensworth Quarry, which supplies raw feed
to our Rugby cement plant. In collaboration
with the local wildlife trust and Royal
Society for the Protection of Birds, we
planted specially selected wildflower
seeds to attract butterflies, identified as
a species of importance under Section
41 of the Natural Environment and Rural
Communities Act. Additionally, Herdwick
sheep graze these grasslands during
autumn to preserve their quality.
• Poland. At our Latosówka quarry,
ornithologists conducted eight field
inspections, identifying a total of 62 bird
species, including 46 confirmed or likely
breeders.
• Czech Republic. As part of its site
expansion plans, the Prachovice cement
plant assessed its quarry’s impact on
biodiversity and determined that its
existing operations have minimal effects
on the surrounding environment. In many
cases, we also found that the site supports
protected or rare species. Research
indicated that the woodland edge created
by the quarry serves as an important
feeding area for bats roosting in nearby
woods and caves. Based on these insights,
the expansion plan will preserve exposed
cliff faces and access to underground
caves, as well as 7.5 hectares of native
woodland and scrub. Large areas will
be left to naturally regenerate, and the
restoration will include the creation of a
lake and wetlands.
• Croatia. In 2024, we conducted research
to develop a biodiversity baseline for
our site’s BAP. As part of this research,
cameras were installed at three locations
in the site’s complex topography of
dense bushes and Mediterranean forest
and ponds. It captured photos of many
mammals, including wild boars, badgers,
foxes, golden jackals, and stone martens.
SCA&C
• Colombia. In 2010, Cemex donated
approximately 2,000 hectares of land
to the Chingaza National Nature Park in
central Colombia. The land was previously
an aggregates quarry that operated for
50 years and contributed to the economic
and social development of nearby
communities. The donation of this land
to the country’s park service marked the
final step in the quarry’s restoration plan.
Today, the park provides drinking water
to nearly 11 million people and is home to
rare plant and animal species.
51
Cemex 2024 Integrated Report
Contents
Our Company
Our Strategy
Financial Performance
Environmental Excellence
Future in Action: Achieving
Decarbonization Targets
Toward a Net-Zero Future
Sustainable Products and Solutions:
Expanding the Sustainability
Features of Our Products
Decarbonizing Our Operations:
Moving Rapidly to Achieve Our
Ambitious Goals
Circular Economy: Repurposing
Materials to Minimize Our
Environmental Impact
• Water, Biodiversity, and Air Quality:
Building a Nature-Positive Future
Innovation and Partnerships:
Catalyzing Innovation Across
Our Business and Industry
Promoting a Green Economy:
Using Our Voices to Accelerate
Action in Our Industry
Social Commitment: Accelerating
Our Responsibilities for a
Just Transition
Stakeholder Engagement
Governance
Appendix
El Carmen Nature Reserve: Habitat Restoration and Species Conservation
Cemex manages a fully dedicated nature conservation reserve that is not linked to
any of its quarries or mining operations. For every hectare of global active operations,
we manage seven hectares of conservation land in El Carmen Nature Reserve, a
private cross-border conservation area in Mexico and the U.S. It hosts five different
ecosystems and habitats to diverse species of plants, birds, mammals, reptiles, and
amphibians in more than 130,000 hectares (the size of Houston, TX, or Mexico City). It
is the cement industry’s largest nature reserve dedicated to rewilding.
Since acquiring the land 25 years ago, we have tackled land overuse and degradation
caused by livestock breeding, successfully restoring over 30,000 hectares of native
grasslands to date. Since 2016, El Carmen has been designated Gold Certified by the
Wildlife Habitat Council, the highest category granted.
Additionally, El Carmen serves a social purpose. In March 2024, it hosted the first
Academy of Prescribed Burns for Women in Latin America. Brigade members from
various Mexican states and institutions related to fire management participated
in these controlled burn exercises. A total of 64 people attended, including
representatives from institutions such as the Mexican Fund for the Conservation of
Nature, National Commission of Protected Natural Areas, and National Forestry
Commission of Mexico, as well as three guests from Big Bend National Park.
Cemex’s Latest
Conservation Book Series
Focuses on Rewilding
In 2024, we released the 31st
edition of our Cemex Nature
Book Series. Rewilding is an
extraordinary book that takes
readers on a captivating journey
through the lens of renowned
photographers, exploring the
concept of rewilding and its crucial
role in conservation.
The edition features a powerful
collection of images that capture
the reintroduction of keystone
species, the revival of native flora,
and the restoration of biodiversity
in areas affected by human
activity, on land and in the ocean,
underscoring nature’s resilience
when given the opportunity to
recover.
Since 1993, Cemex has published a
new book every year for its global
audiences and to reinforce its
commitment toward promoting a
culture of biodiversity conservation.
This year’s volume is published in
collaboration with SeaLegacy
and Re:wild, organizations focused
on protecting and restoring
biodiversity around the world.
ä Learn more about Cemex’s new
conservation book, Rewilding.
Wildlife Habitat Council
Recognizes Cemex
Conservation Projects
The Wildlife Habitat Council (WHC)
awarded four Cemex projects across
the U.S. and Mexico for excellence
in corporate conservation during
the 2024 WHC Conservation
Conference. These projects highlight
our positive impact on nature
through conservation, restoration,
and enhancement, as well as our
commitment to making a positive
and lasting impact on communities
worldwide.
• Mexico. We received recognition for
two projects, one for environmental
education for students at the
limestone and clay sites in Tamuín
and another for desert habitat
restoration at Cerro Jardín,
Xoyatla, and Coayuca in Atotonilco.
• U.S. We were honored for two
training programs: environmental
training at Cemex’s operations
in Alabama and a formal
environmental education program
at Cemex’s quarry operations in
Center Hill, Florida.
52
Cemex 2024 Integrated Report
Contents
Our Company
Our Strategy
Financial Performance
Environmental Excellence
Future in Action: Achieving
Decarbonization Targets
Toward a Net-Zero Future
Sustainable Products and Solutions:
Expanding the Sustainability
Features of Our Products
Decarbonizing Our Operations:
Moving Rapidly to Achieve Our
Ambitious Goals
Circular Economy: Repurposing
Materials to Minimize Our
Environmental Impact
• Water, Biodiversity, and Air Quality:
Building a Nature-Positive Future
Innovation and Partnerships:
Catalyzing Innovation Across
Our Business and Industry
Promoting a Green Economy:
Using Our Voices to Accelerate
Action in Our Industry
Social Commitment: Accelerating
Our Responsibilities for a
Just Transition
Stakeholder Engagement
Governance
Appendix
S P O T L I G H T : E L C A R M E N N A T U R E R E S E R V E
Celebrating 25 Years: Wasteland
Becomes Wildlife Haven
Jonas, a biologist with Cemex, remembers
when the land of the El Carmen Reserve
was wholly degraded, overgrazed by
sheep and goats, and stripped of its
natural beauty and vegetation. His
description: “It was a wasteland.”
Then, 25 years ago, Cemex began its
intervention to restore the reserve, and
Jonas couldn’t believe the transformation.
The barren land became a wildlife haven
for flora, fauna, and a host of animals,
including the bighorn sheep, American
bison, and the majestic black bear.
Starting his work with Cemex as a
student in 1996, the return of animals
and the restoration of the land’s delicate
ecosystem have been among Jonas’s
most significant sources of personal and
professional joy.
Jonas played a crucial role in monitoring
the land’s recovery so the reintroduced
species could thrive in their renewed
habitat. His research and fieldwork guided
conservation strategies toward a balanced
and self-sustaining ecosystem.
“I recall seeing the animals roam freely in
their natural habitat—running through the
grasslands, basking in the sun, and joyfully
playing in the snow. An indescribable
feeling fell over me as I watched the
animals in their natural habitat. It was like
nothing I had ever witnessed before.”
Jonas says everything about the
transformation of the El Carmen
Nature Reserve has been impactful, but
watching the resurgence of the black bear
population was particularly remarkable.
Once completely absent from the region,
the black bear returned, using the El
Carmen reserve as a biological corridor
connected with Big Bend National
Park in Texas. Reestablishing this vital
passageway allows species to migrate and
thrive once more.
As the restoration of the El Carmen Nature
Reserve continues, Jonas envisions a
future where the land flourishes beyond
what was once thought possible–where
vegetation is thoroughly restored, animal
diversity increases, and the delicate
ecosystem is fully balanced. The greatest
challenge moving forward? Ensuring that
progress continues.
“Seeing how far we have come, I have
no doubt that El Carmen will remain a
sanctuary–for wildlife, for nature, and
for generations to come. I’m proud to
work for a company that is committed
to transforming the land, benefiting the
surrounding communities, the region, and
the world.”
ä Learn more about El Carmen Nature Reserve.
25 YEARS IN THE MAKING:
A LOOK AT EL CARMEN NATURE RESERVE
25 Years
Cemex ownership,
stewardship
of El Carmen
rewilding effort
130,000
Hectares
size of Houston, TX,
or Mexico City
30,000
Hectares
native grasslands
restored
+70 mammal
species
recovered or
reintroduced, including
white tail deer, javelina,
mule deer, black bear,
pronghorn antelope,
bighorn sheep
+50
reptile,
amphibian
species
117
American bison
successfully
reintroduced
Largest
black bear
population in
Mexico
53
Cemex 2024 Integrated Report
Contents
Our Company
Our Strategy
Financial Performance
Environmental Excellence
Future in Action: Achieving
Decarbonization Targets
Toward a Net-Zero Future
Sustainable Products and Solutions:
Expanding the Sustainability
Features of Our Products
Decarbonizing Our Operations:
Moving Rapidly to Achieve Our
Ambitious Goals
Circular Economy: Repurposing
Materials to Minimize Our
Environmental Impact
• Water, Biodiversity, and Air Quality:
Building a Nature-Positive Future
Innovation and Partnerships:
Catalyzing Innovation Across
Our Business and Industry
Promoting a Green Economy:
Using Our Voices to Accelerate
Action in Our Industry
Social Commitment: Accelerating
Our Responsibilities for a
Just Transition
Stakeholder Engagement
Governance
Appendix
Environmental Stewardship Includes Compliance Standards
Cemex Environmental Management System
Our risk-based Environmental Management System (EMS) systematically audits internal
compliance with our environmental policy across all our global operations and through
our three businesses, cement, ready-mix, and aggregates. Our EMS is aligned with global
environmental standards, such as ISO 14001 and the EU Eco-Management and Audit
Scheme, allowing us to achieve ISO 14001 certification in 80% of our cement sites. In 2024,
we implemented EMS in 93% of our businesses.
Environmental and Social Performance Management
Our EMS integrates environmental performance, impact assessment, stakeholder
engagement, and response to events with input from a range of subject matter experts.
Our Environmental and Social Incident Reporting process enables our global sites to
maintain open communication with the communities where we operate and have a
proactive approach to incident response. It also serves as a grievance mechanism to
register complaints from external stakeholders.
Environmental and Social Incident Reporting Framework
Our standardized framework recognizes and registers incidents in three categories
according to their severity: major, moderate, and minor. 2024 marked the sixth consecutive
year during which no major (Category 1) environmental and social events were registered.
Dialogue and Engagement. We work to maintain open communication channels with our
neighbors, law enforcement officials, public agencies, and other stakeholders.
• Rapid Response. Global, regional, and local rapid response teams are trained to address
environmental and social impact events and hold annual emergency drills according to
contingency plans at each of our sites.
• Continuous Improvement. We consistently record events at every level of our business
to identify recurring root causes, implementing and sharing corrective actions with our
stakeholders.
Reducing Emissions to Improve Air Quality
Cemex is investing in technologies to monitor and reduce air emissions in our processes. In
2024, 100% of our clinker production was subject to continuous emission monitoring systems
(CEMS), for our major emissions, including particulate matter (PM), sulfur oxide (SOx), and
nitrogen oxide (NOx), regardless of whether it is required by state or local regulations.
Besides allowing our operators to monitor major air emissions in kilns, the information
gathered is used to analyze trends and action points and to share best practices. Minor
emissions are also monitored in our kilns, with the frequency required by GCCA protocol.
Emissions Abatement by the Numbers
Major air emissions—PM, SOx, and NOx—are released as part of the cement
manufacturing process. Minor air emissions—volatile organic compounds,
dioxins and furans, and other heavy metals—are released in small quantities.
Progress Toward Our 2030 Air Emissions Reduction Targets:
88%
decrease of PM emissions
compared to our 2005
baseline. 2030 target: 95%
54%
reduction in SOx emissions
compared to our 2005
baseline. 2030 target: 67%
39%
reduction in NOx emissions
compared to our 2005
baseline. 2030 target: 47%
32%
26%
15%
7%
6%
3%
2%
9%
Environmental and Social Incidents
and Complaints Reporting
Fuels & Chemicals
PM
Water
Waste & Materials
Noise, Odor & Light
Logistics
Air Emissions (excl. PM)
Others
54
Cemex 2024 Integrated Report
Contents
Our Company
Our Strategy
Financial Performance
Environmental Excellence
Future in Action: Achieving
Decarbonization Targets
Toward a Net-Zero Future
Sustainable Products and Solutions:
Expanding the Sustainability
Features of Our Products
Decarbonizing Our Operations:
Moving Rapidly to Achieve Our
Ambitious Goals
Circular Economy: Repurposing
Materials to Minimize Our
Environmental Impact
Water, Biodiversity, and Air Quality:
Building a Nature-Positive Future
• Innovation and Partnerships:
Catalyzing Innovation Across
Our Business and Industry
Promoting a Green Economy:
Using Our Voices to Accelerate
Action in Our Industry
Social Commitment: Accelerating
Our Responsibilities for a
Just Transition
Stakeholder Engagement
Governance
Appendix
Innovation and Partnerships:
Catalyzing Innovation Across
Our Business and Industry
Our Approach: We collaborate with organizations to develop,
source, and scale innovative solutions that will accelerate our
transition to a carbon-neutral future.
A key to unlocking true carbon neutrality is discovering and scaling new technologies that
can mitigate, capture, store, or use carbon. Through our Future in Action program, we
seek to accelerate the deployment and development of carbon capture, utilization, and
storage (CCUS) projects and invest in breakthrough proven technologies that are at the
forefront of carbon mitigation to lower our CO2 footprint and deliver our ultimate goal of
being net-zero by 2050.
We constantly seek innovative solutions by sourcing new technologies through Cemex
Ventures, our venture capital unit, and our Global Research and Development facility, our
Global Operations and Technical facility, along with partnerships and collaborations with
institutions across the public and private sectors.
KEY INDICATORS
+60 Partners
working with like-
minded organizations
to develop industrial-scale
net-zero CO2 solutions
+2,400 Ideas
record number of internal
proposals for initiatives—
third consecutive year
to receive over 1,000
+280 Projects
current innovation portfolio
focused on decarbonization
of operations, sustainable
construction, and digitalization of
our business, among others
How We Innovate
We have open innovation and smart
innovation processes as we seek to deliver
exceptional value to our customers. Our
venture capital unit sources innovative
technologies and helps companies
accelerate their growth. Our global
research and development facility develops
in-house technologies to reach net-zero CO2
emissions across our company by 2050.
Cemex Ventures
Cemex Ventures is our open innovation
and venture capital unit that develops
strategic business opportunities through
collaboration, partnership, and investment
in disruptive companies. Working with key
contributors in the construction industry’s
entrepreneurial ecosystem, this unit has 23
start-ups in its portfolio and is responsible
for the world’s largest Construction Startup
Competition, an annual event, with an
average of 500 start-ups participating
each year.
55
Cemex 2024 Integrated Report
Contents
Our Company
Our Strategy
Financial Performance
Environmental Excellence
Future in Action: Achieving
Decarbonization Targets
Toward a Net-Zero Future
Sustainable Products and Solutions:
Expanding the Sustainability
Features of Our Products
Decarbonizing Our Operations:
Moving Rapidly to Achieve Our
Ambitious Goals
Circular Economy: Repurposing
Materials to Minimize Our
Environmental Impact
Water, Biodiversity, and Air Quality:
Building a Nature-Positive Future
• Innovation and Partnerships:
Catalyzing Innovation Across
Our Business and Industry
Promoting a Green Economy:
Using Our Voices to Accelerate
Action in Our Industry
Social Commitment: Accelerating
Our Responsibilities for a
Just Transition
Stakeholder Engagement
Governance
Appendix
Clinker Micronization
Clinker micronization is a process of
ultrafine grinding of clinker to enhance
its reactivity, allowing us to optimize
the clinker content in our cements.
Implementing this technology will require
adjustments in our cement production
process, enabling us to prioritize
operations based on market demand,
cement types, available supplementary
cementitious materials, equipment
considerations, and potential clinker
factor optimization.
Currently, we are performing tests in
Spain, Croatia, the U.S., and Mexico.
By optimizing our cement and materials
with this initiative, we would not only
enhance our performance but also
significantly lower our overall carbon
footprint.
Leaplab Acceleration Program
Cemex Ventures Leaplab is our exclusive
acceleration program to help expedite
the growth of high-potential start-ups in
four market-driven opportunity areas:
green construction, enhanced productivity,
construction supply chain, and future of
construction. We provide strategic services
and use our resources and network of
experts to collaborate with high-potential
start-ups to address critical challenges
facing our company.
Since establishing Leaplab, Cemex has
supported 10 start-ups from the U.K.,
Spain, Israel, Colombia, Mexico, Chile, the
U.S., and Austria. Real-scale pilots have
been executed in 15 countries across all our
business lines. Entrepreneurs are supported
by a team of 200 internal and external
venture capital, entrepreneurship, and
construction experts who serve as mentors,
pilot leaders, and expert speakers.
ä Learn more about Cemex Ventures.
Research and Development
Cemex has a multidisciplinary team focused on developing cutting-edge, cost-effective,
and sustainable technologies that meet performance requirements. Our Global Research
and Development team in Switzerland brings together science and engineering experts
with diverse backgrounds to innovate and collaboratively develop products, techniques,
and technologies that push the boundaries of sustainable construction.
Cemex Recognized at
COP29 for Solar Clinker
Breakthrough
We were awarded the Net-Zero
Industries Award by Mission
Innovation at a ceremony during
COP29 in Baku, Azerbaijan,
for our revolutionary clinker
decarbonization process using
concentrated solar power in
partnership with cleantech
company Synhelion.
Mission Innovation is a global
initiative to catalyze action
and investment in research,
development, and demonstration
to make clean energy affordable,
attractive, and accessible to all in
this decade. Its Net-Zero Industries
Award recognizes and celebrates
outstanding innovations in industrial
decarbonization; it spotlights the
people and projects revolutionizing
energy-intensive industries and
driving substantial reductions in
greenhouse gas emissions.
ä
Learn more about this
groundbreaking partnership.
Reaching Net-Zero CO2 Emissions
We are working to reduce the CO2 footprint
of our cement and concrete by exploring
alternative fuel sources and integrating
innovative construction chemicals and
alternative supplementary cementitious
materials.
Solar Radiation
Cemex continues its partnership with
Synhelion to harness the power of solar
radiation to fuel cement kilns, eliminating the
need for other energy sources. Synhelion
technology captures 100% of process
carbon emissions, which can be stored or
utilized as feedstock for fuel production and
enables cement manufacturing to achieve
a net-zero emissions level. In 2024, Cemex
and Synhelion advanced plans to scale
the technology by building a solar-driven
industrial-scale pilot cement plant near
Madrid, Spain.
56
Cemex 2024 Integrated Report
Contents
Our Company
Our Strategy
Financial Performance
Environmental Excellence
Future in Action: Achieving
Decarbonization Targets
Toward a Net-Zero Future
Sustainable Products and Solutions:
Expanding the Sustainability
Features of Our Products
Decarbonizing Our Operations:
Moving Rapidly to Achieve Our
Ambitious Goals
Circular Economy: Repurposing
Materials to Minimize Our
Environmental Impact
Water, Biodiversity, and Air Quality:
Building a Nature-Positive Future
• Innovation and Partnerships:
Catalyzing Innovation Across
Our Business and Industry
Promoting a Green Economy:
Using Our Voices to Accelerate
Action in Our Industry
Social Commitment: Accelerating
Our Responsibilities for a
Just Transition
Stakeholder Engagement
Governance
Appendix
Hydrogen
Cemex is working with HiiROC, a pioneering
British hydrogen company, to initiate an
industrial-scale hydrogen deployment
at our Rugby cement plant in the U.K. As
a low-carbon energy source within the
construction industry’s decarbonization road
map, hydrogen offers significant potential
to reduce the sector’s reliance on fossil
fuels and lower CO2 emissions. This venture
marks a significant milestone for Cemex as
it represents the first large-scale strategic
project plan aimed at further lowering our
carbon emissions in cement production.
Additionally, Cemex is part of the HYIELD
consortium, which was awarded a €10 million
grant from the European Union to develop
a waste-to-hydrogen demonstration plant.
Led by the Clean Hydrogen Partnership, the
demonstration plant will be trialed at Cemex’s
cement plant in Alcanar, Spain. The plant
is expected to process 2,000 tons of waste
and produce nearly 400 tons of hydrogen
through water electrolysis for different
industry uses such as clean fuels, fertilizer
production, and others.
Alternative Fuels
CLYNGAS is an innovative project, funded
by the EU’s Innovation Fund, intended to
replace part of the fuel used to manufacture
clinker with a high-value gas obtained
through the gasification process of waste
and by-products from other industries. The
project, being implemented at Cemex’s
cement plant in Alicante, Spain, replaces
some of the fossil fuels used to avoid around
5.5% of greenhouse gas emissions, while
guaranteeing a stable process and high-
quality production.
CCUS
Cemex is currently involved in the
development of large-scale CCUS projects
in Europe and the U.S., along with several
pilots and emerging CCUS technologies
designed to improve and accelerate
decarbonization.
Large-scale CCUS projects for Cemex’s
facilities in Alicante and Alcanar, Spain,
and Sveti Juraj, Croatia, were granted
the Strategic Technologies for Europe
Platform (STEP) Seal. This selective quality
label providing visibility to attract public
and private investors in projects that align
with the STEP’s objectives, such as those
contributing to clean and resource-efficient
technologies. Only 64 projects, in addition to
funded projects, received this designation out
of a total of 337 projects submitted in 2024.
EU Innovation Fund
Supports Major CCUS
Project at Cemex
Rüdersdorf Plant
In 2024, a consortium formed by
Cemex and Linde, a leading global
industrial gases and engineering
company, was granted €157 million
from the EU Innovation Fund for
the development of a CCUS project
that is expected to capture 1.3
million metric tons of CO2 per year
from Cemex Rüdersdorf’s cement
plant, ultimately decarbonizing the
site by 2030.
Cemex’s largest CCUS project to
date will deploy Linde’s pioneering
HISORP® technology for the first
time in a unique state-of-the-art
cryogenic-adsorptive process that
captures CO2 from the exhaust
gas directly at the emission source.
The raw CO2 is then compressed
and liquefied so that it meets the
purity requirements for subsequent
sequestration. Finally, the liquid
CO2 product will be transported
by rail to an intermediate CO2 hub
and shipped to an offshore storage
site in the North Sea for permanent
storage.
Carbon Nanomaterials
Cemex was the first company in the
cement industry to successfully turn CO2
into carbon nanomaterials directly from
flue gases—a potential game changer in
decarbonizing cement production. Cemex
achieved promising lab results with a carbon
conversion rate of 70%. During 2024, a
cement plant in Spain was selected for a
pilot, which is currently in the final stages
of construction. The proposed technology
can turn CO2 emissions into value-added
products, including high-tech materials such
as nanofibers, nanotubes, graphene, and
carbon black.
During 2024, in collaboration with the U.S.
Department of Energy’s Office of Fossil
Energy and Carbon Management and the
University of Illinois Urbana-Champaign
Net-Zero Center of Excellence, we submitted
an application to host Phase 1 of a cement
carbon capture center at our Knoxville, TN,
cement plant. Cemex convened a strong
consortium of cement and lime companies,
national laboratories, universities, and other
carbon capture test centers to host the
proposed facility. It will be the fourth such
test center in the world and the only center
dedicated to the cement industry.
While Cemex is working hard to decarbonize using
existing technology (reduce before capture), an
important component of our Future in Action program
is to develop and deploy breakthrough decarbonization
solutions for our industry to reach net-zero.
57
Cemex 2024 Integrated Report
Contents
Our Company
Our Strategy
Financial Performance
Environmental Excellence
Future in Action: Achieving
Decarbonization Targets
Toward a Net-Zero Future
Sustainable Products and Solutions:
Expanding the Sustainability
Features of Our Products
Decarbonizing Our Operations:
Moving Rapidly to Achieve Our
Ambitious Goals
Circular Economy: Repurposing
Materials to Minimize Our
Environmental Impact
Water, Biodiversity, and Air Quality:
Building a Nature-Positive Future
• Innovation and Partnerships:
Catalyzing Innovation Across
Our Business and Industry
Promoting a Green Economy:
Using Our Voices to Accelerate
Action in Our Industry
Social Commitment: Accelerating
Our Responsibilities for a
Just Transition
Stakeholder Engagement
Governance
Appendix
CCUS Partnerships
Cemex has several partnerships to develop and scale next-generation CCUS technologies.
To fast-track development, in 2024 Cemex started an internal decarbonization fund to
support pilot projects to de-risk and scale up selected technologies. This fund will help
shorten the timeline for development usually associated with public funding. Cemex is also
testing novel technologies through publicly funded programs.
Clean Energy Transition Partnership
Cemex is part of the DRIVE consortium
through the Clean Energy Transition
Partnership. DRIVE (Deep Removal of CO2
and Innovative Electrification Concepts)
aims to provide electrochemical solutions for
CO2 capture and developing technologies
for deep removal of CO2. Selected technol-
ogies using electrochemical regeneration
of solvents will be tested at our plant in
Prachovice, Czech Republic, as we look for
new ways to cost effectively lower the resid-
ual emissions associated with CO2 capture.
RTI International and SLB
Cemex is partnering with nonprofit research
institute RTI International, global technology
company SLB, and Oak Ridge National
Laboratory for a project to install a 1 TPD
carbon capture pilot plant at its Victorville,
CA, cement plant using RTI’s solvent and
two new intensified absorbers. The goal
of the project, which was awarded a US$5
million grant from the U.S. Department
of Energy, is to increase efficiencies and
value in Cemex’s overall building material
fabrication process while significantly
reducing its CO2 footprint.
In another partnership with RTI, SLB, and
others, Cemex is performing the engineering
design of a carbon capture plant at the
company’s Balcones cement plant in New
Braunfels, TX, to capture 95% of CO2
emissions from both kilns at the site. The
front-end engineering design (FEED) study
is funded by the U.S. Department of Energy.
It will determine and assess the overall costs
of the integration of a 670,000-ton CO2
per year commercial-scale carbon capture
system into the manufacturing process.
KC8
As part of a minority investment in
Australian company KC8 Technologies by
Cemex Ventures, Cemex is collaborating to
scale up KC8’s UNO MK3 carbon capture
technology through a 100 TPD plant FEED
study, a mandatory step prior to a potential
commercial installation. This carbon capture
technology allows for separation of CO2
from flue gases via a chemical separation
through a solid potassium carbonate.
Carbon BioCapture
Cemex is working with U.S.-based company
Carbon BioCapture to build a pilot plant in
our Huichapan cement plant in Mexico to
study a biomass solution for carbon capture
using an algae reproduction and CO2 capture
system. The project will provide technological
benefits by introducing biomass as a fuel for
cement kilns, showcasing a carbon circularity
model. It also will provide subsequent use of
biomass in potential high-value products,
such as fertilizers, livestock feed, biofuels,
and other bio-chemicals.
Carbon Clean
Since 2020, Cemex has worked with Carbon
Clean, a provider of innovative carbon
capture technologies headquartered in
the U.K., who developed Cyclone CC,
an innovative amine-based capture
technology. As we look for new ways to
deploy solvent-based technologies for
capture in the cement industry, Cemex
is exploring the deployment of a 10 TPD
Cyclone CC pilot at a cement plant. The
plant will use a breakthrough combination
of two technologies: Carbon Clean’s
proprietary amine solvent and rotating
packed beds.
CryoPur
Cemex is working with French company
CryoPur to test a patented innovative
cryogenic capture technology to mitigate
emissions from cement operations. The
technology allows for physical separation of
CO2 from flue gases via cryogenic methods.
This technology can be used to produce
high-purity CO2, which is critical to achieving
strict storage specifications. The innovative
technology will be piloted at Cemex’s Rudniki
plant in Poland.
Northwestern University
Cemex, in partnership with Northwestern
University, has developed a solution to store
CO2 in concrete using a carbonated water-
based solution. This process sequesters up
to 45% of CO2 without compromising the
concrete’s strength.
UNAM-TEC Consortium for Research,
Technology Transfer, and Entrepreneurship
Cemex maintains research and
collaboration agreements with Universidad
Nacional Autónoma de México (UNAM)
and Instituto Tecnológico y de Estudios
Superiores de Monterrey (ITESM) focused
on innovative applications of captured
CO2 from our cement production process.
These partnerships, besides supporting our
decarbonization road map, foster closer ties
between industry and academia.
Enabling Sustainable Construction
Cemex conceives and develops new
technologies, materials, and processes,
striving to deliver unique, integrated, and
cost-effective solutions that are sustainable,
high performance, and market driven. We
aim to push the boundaries of sustainable
construction with forward-looking concepts
and approaches that seek to emphasize
positive environmental impacts.
58
Cemex 2024 Integrated Report
Contents
Our Company
Our Strategy
Financial Performance
Environmental Excellence
Future in Action: Achieving
Decarbonization Targets
Toward a Net-Zero Future
Sustainable Products and Solutions:
Expanding the Sustainability
Features of Our Products
Decarbonizing Our Operations:
Moving Rapidly to Achieve Our
Ambitious Goals
Circular Economy: Repurposing
Materials to Minimize Our
Environmental Impact
Water, Biodiversity, and Air Quality:
Building a Nature-Positive Future
• Innovation and Partnerships:
Catalyzing Innovation Across
Our Business and Industry
Promoting a Green Economy:
Using Our Voices to Accelerate
Action in Our Industry
Social Commitment: Accelerating
Our Responsibilities for a
Just Transition
Stakeholder Engagement
Governance
Appendix
Casas Betania Project
Cemex’s digital manufacturing technique,
Morphing, was used to complete a
residential complex in Barcelona, Spain.
Morphing uses computer advances and
Cemex’s Insularis® technology to produce
complex, non-repetitive building materials
with thermal insulation properties cost
effectively. The project, which features
three single-family homes on the same lot,
each one with a private area and a common
garden, is expected to reduce CO2 emissions
by 90% a year and provide annual energy
savings of 89%. It uses 85% recyclable
or reusable materials and saves 80% on
rainwater irrigation.
Félix Candela Mini Pavilion in Geneva
To showcase the potential and flexibility
of Cemex Resilia® product and its use
in designing and building thin-shell
structures, Cemex built a mini pavilion as
part of an exhibition to honor the legacy
of architect Félix Candela in August 2024
in Geneva, Switzerland. Using Cemex’s
D.fab folding technique, the 1:5-scale
replica of Candela’s 1962 Botanical
Garden Pavilion in Oslo, Norway, was
transported and assembled on-site in
less than 24 hours and can be dismantled
and reassembled as needed.
Transforming Our Business With Digital Solutions
We continually invest in and develop innovative digital solutions that leverage AI tools
to improve customer experiences and help develop more efficient projects.
Building Information Modelling
Recognizing the growing importance
of digitalization and its impact on our
customers and stakeholders, Cemex is
adopting building information modeling
(BIM) technology for the construction
industry. We have successfully developed
and launched a unique platform in a BIM
environment that enables architects,
engineers, and builders to enhance their
workflows with a variety of features
that promote the use of innovative
materials for more sustainable projects.
BIM is central to strategies aimed
at increasing construction project
efficiency and guaranteeing best-in-
class construction data management.
Cemex has implemented its BIM platform
in Colombia, Mexico, the U.K., France,
Germany, and Poland and continues to
expand it into new markets.
AI Solutions
• Introid. Cemex has piloted this ad-
vanced computer vision and AI solution
to improve safety and productivity in
manufacturing in Mexico, with appli-
cations in ready-mix, cement, and a
Regenera waste management site.
• Verusen. This AI-driven software for
automating spare parts and MRO
inventory management is being piloted
across all cement plants in the South
and Central America and the Caribbean
(SCA&C) region to evaluate its ability to
optimize inventory replenishment.
• Mixteresting. Cemex is testing this
AI-powered platform for optimizing
concrete mix designs in three ready-
mix plants in Germany to validate
faster development of efficient, cost-
effective, and low-CO2 concrete mixes.
• Waterplan. This AI-powered water risk
management platform is being tested
across all our cement, ready-mix, and
aggregate sites in the SCA&C region,
as well as in our cement sites in Mexico,
to monitor and mitigate water risks at
corporate and local levels.
Photo courtesy: PICH Architects
59
Cemex 2024 Integrated Report
Contents
Our Company
Our Strategy
Financial Performance
Environmental Excellence
Future in Action: Achieving
Decarbonization Targets
Toward a Net-Zero Future
Sustainable Products and Solutions:
Expanding the Sustainability
Features of Our Products
Decarbonizing Our Operations:
Moving Rapidly to Achieve Our
Ambitious Goals
Circular Economy: Repurposing
Materials to Minimize Our
Environmental Impact
Water, Biodiversity, and Air Quality:
Building a Nature-Positive Future
Innovation and Partnerships:
Catalyzing Innovation Across
Our Business and Industry
• Promoting a Green Economy:
Using Our Voices to Accelerate
Action in Our Industry
Social Commitment: Accelerating
Our Responsibilities for a
Just Transition
Stakeholder Engagement
Governance
Appendix
Promoting a Green Economy:
Using Our Voices to Accelerate
Action in Our Industry
Our Approach: We advocate for the establishment of stable
regulatory environments and frameworks that foster and
accelerate our industry’s decarbonization.
Collaboration Accelerates Our Carbon-Neutral Future
Cemex believes that climate change is one of the biggest challenges of our time and supports
actions that align with the Paris Agreement commitments and fulfill the United Nations
Sustainable Development Goals (SDGs) on climate action. A key component of achieving our
climate action targets and ambition to become a net-zero company by 2050 is promoting
public policies that enable the decarbonization of the cement and concrete industry.
Close collaboration across industry stakeholders is crucial for accelerating the adoption of
climate-focused frameworks. That’s why we actively work with industry peers and external
trade associations to advance our priorities in circular economy and waste management,
lower-carbon products, carbon pricing, clean electricity, and government funding to
enable the transition to a carbon-neutral future.
KEY ACCOMPLISHMENTS
Uniting Industry
Leaders and
Policymakers
During 2024’s Climate Week in New
York City, Cemex brought together
world-renowned leaders on circularity
to discuss challenges and opportunities
in the building sector.
Promoting
Industry Change
As part of our industry coalition
advocacy, Cemex supported U.S.
legislation that promotes research
and development of advanced
technologies to improve efficiency in
cement and concrete production.
We firmly believe that
adopting policies based
on green and circular
economy principles offers
significant opportunities
to achieve substantial
emission reductions
across multiple sectors,
with the cement and
concrete industry playing
a central role.
Global Cement and Concrete Association’s
Path to Decarbonization
The Global Cement and Concrete Association’s (GCCA) detailed road map was the
first net-zero commitment of any of the heavy industries and sets out the detailed
pathways, levers, and milestones required to achieve this ambitious target. Together,
the industry is committed to accelerating the shift to carbon-neutral cement and
concrete by cutting CO2 emissions by 20% per ton of cement and 25% per m3 of
concrete by 2030 and full decarbonization by 2050.
In 2024, GCCA published its annual Cement Industry Net Zero Progress Report,
highlighting decarbonization progress and underlining the industry’s commitment to
building a sustainable future. Since the 1990 baseline, the industry has achieved a 23%
emissions reduction in CO2 per ton of cement and is on track to deliver carbon capture,
utilization, and storage technology at industrial scale by 2030.
60
Cemex 2024 Integrated Report
Contents
Our Company
Our Strategy
Financial Performance
Environmental Excellence
Future in Action: Achieving
Decarbonization Targets
Toward a Net-Zero Future
Sustainable Products and Solutions:
Expanding the Sustainability
Features of Our Products
Decarbonizing Our Operations:
Moving Rapidly to Achieve Our
Ambitious Goals
Circular Economy: Repurposing
Materials to Minimize Our
Environmental Impact
Water, Biodiversity, and Air Quality:
Building a Nature-Positive Future
Innovation and Partnerships:
Catalyzing Innovation Across
Our Business and Industry
• Promoting a Green Economy:
Using Our Voices to Accelerate
Action in Our Industry
Social Commitment: Accelerating
Our Responsibilities for a
Just Transition
Stakeholder Engagement
Governance
Appendix
GCCA Leadership
Cemex is a founding member of the GCCA, a global industry
platform established to facilitate sustainable development
of the cement and concrete sectors. In 2024, our chief
executive officer, Fernando A. González, entered his sec-
ond term as GCCA’s president with a pressing agenda to
accelerate decarbonization within our industry. Before his
recent election, he served as vice president since 2018. He
has prioritized collaborating closely with governments and
industry to evolve regulatory frameworks that promote
a more circular, lower-carbon economy. Describing this
period as “the decade to deliver,” he has urged public and
private sectors to work together developing the regulatory
ecosystem our industry requires to reach its full potential as
a contributor to a carbon-neutral society.
As we are almost halfway through the decade, now more
than ever, it is critical to continue focusing on transforming
regulations, policies, and frameworks to support the
transition to a carbon-neutral, green, and circular economy.
This includes:
• encouraging regulations that promote the use of municipal
and industrial waste as sustainable alternative fuels for
cement kilns, as well as using construction, demolition, and
excavation materials as recycled raw inputs
• promoting building codes and norms that allow the extensive
adoption of lower-carbon cement and concrete products
• establishing market-driven carbon pricing mechanisms
that incentivize decarbonization and investment in carbon
reduction technologies
• seeking funding and alliances to develop new technologies
that reduce carbon emissions in the cement manufacturing
process and accelerate the development and scaling
of carbon capture, utilization, and storage (CCUS)
technologies
Our Advocacy at Work
Achieving a sustainable future requires strong partnerships
and collaborations across our global stakeholder network:
Industry peers, suppliers, customers, policymakers and reg-
ulators, non-governmental organizations, and communities.
Using our leadership positions, we continue deepening and
strengthening these relationships, engaging others to help
us move our sustainability agenda forward.
ä Learn more about our Advocacy Priorities.
First Movers Coalition
Cemex is a founding member of the World Economic
Forum’s First Movers Coalition designed to drive demand
for zero-carbon technologies. We actively participate in the
organization’s Transportation Subcommittee and vigorous-
ly promote efforts to decarbonize our industry’s fleets. In
2024, we focused on key areas to address transportation
emissions, including expanding our use of renewable diesel,
gas, and biofuels in the U.S.; purchasing additional fully elec-
tric mixer trucks in Europe, Mexico, and the Middle East; and
digitalizing our fleet to optimize cargo and reduce emissions.
United Nations Ecosystem
We have been a signatory of the UN Global Compact
since 2004. In 2024, we continued our commitment to
the UN’s SDGs.
In 2024:
• Our CEO, Fernando A. González, participated in the
Climate Ambition Summit at the UN General Assembly in
New York, advocating for accelerating net-zero progress.
• During Climate Week in New York, Cemex united
global experts for a panel discussion on circularity in
the built environment. Conversations centered on how
to craft a vision for the concrete industry based on
circular economy principles and ways to accelerate
the development of road maps for cement plants to
transition toward lower-carbon production.
• Cemex was represented in a COP29 panel discussion at
the Industrial Transition Accelerator, a key initiative aimed
at mobilizing significant investment to rapidly decarbonize
heavy industries, such as cement, steel, and chemicals. The
initiative is bringing together governments, businesses, and
financial institutions to accelerate the transition to clean
energy projects and technologies within these sectors,
essentially pushing for large-scale investment in green
industrial plants to achieve substantial emission reductions.
Also, during COP29, Cemex spoke on a panel to share
insights on enabling and accelerating the decarbonization
of hard-to-abate industries in emerging markets.
• Our chief financial officer, Maher Al-Haffar, was the
spotlight speaker for the CFO Coalition for the SDGs, a
pioneering U.N. initiative that unites finance leaders to
drive sustainable development and mobilize private capital
toward achieving SDGs. He also spoke at the Leaders
Summit 2024, the UN Global Compact’s dynamic daylong
conference dedicated to providing the tools, network,
knowledge, and inspiration needed to scale the impact
of private sector contributions to the 2030 Agenda for
Sustainable Development.
• We participated in a roundtable discussion at CLG Europe
entitled “Unlocking Industrial Electrification: Driving Public
and Private Action.”
• Cemex participated in a panel discussion at the
Leaders on Purpose Summit presented as part of UN’s
Transformational Governance, where we emphasized the
importance of business integrity as a driver for change.
• Cemex was an active participant at COP16 in Colombia,
the world’s largest biodiversity summit.
• Cemex served on the UN-Habitat Roundtable
(United Nations Human Settlements Programme) on
“Decarbonizing the Built Environment” during the High-
Level Political Forum on Sustainable Development.
ä As part of our commitment to transparency and thought
leadership, we continue to publish company position papers on
crucial climate action areas. These documents, available on
our website, provide insights into our strategic approach and
advocacy efforts.
“To fully unlock our industry’s decarbonization
efforts in this crucial decade to deliver, we urgently
need effective policy support across a range of
levers. When policymakers provide the right market
conditions and policy enablers, significant CO2
reductions are achievable.”
– Fernando A. González, CEO of Cemex and GCCA President
61
Cemex 2024 Integrated Report
Contents
Our Company
Our Strategy
Financial Performance
Environmental Excellence
Future in Action: Achieving
Decarbonization Targets
Toward a Net-Zero Future
Sustainable Products and Solutions:
Expanding the Sustainability
Features of Our Products
Decarbonizing Our Operations:
Moving Rapidly to Achieve Our
Ambitious Goals
Circular Economy: Repurposing
Materials to Minimize Our
Environmental Impact
Water, Biodiversity, and Air Quality:
Building a Nature-Positive Future
Innovation and Partnerships:
Catalyzing Innovation Across
Our Business and Industry
• Promoting a Green Economy:
Using Our Voices to Accelerate
Action in Our Industry
Social Commitment: Accelerating
Our Responsibilities for a
Just Transition
Stakeholder Engagement
Governance
Appendix
Emissions Trading System in Mexico
Cemex participates in Mexico’s emissions trading system
advisory committee, the Comité Consultivo del Sistema
de Comercio de Emisiones (COCOSCE). This industry
group brings together the federal public administration,
the private sector, civil society, and academia for
technical consultation, guidance, participation, and
advice on emissions trading.
European Union’s Carbon Border Adjustment
Mechanism (CBAM) Continues to Take Shape
As requirements of the European Union’s Carbon
Border Adjustment Mechanism continue to evolve for
implementation in 2026, Cemex remains an active
leader for industry associations and policymakers to help
ensure the program formally launches on a level playing
field. The aim is to align with the plan’s objective to
reduce carbon emissions, put a fair price on the carbon
emitted during the production of carbon-intensive goods
imported into the EU, and encourage cleaner production
of these goods through a methodology for calculating
embedded emissions according to the Paris Agreement
and the EU Fit for 55 package.
Advisory Roles Take Effect in Europe
As active advisors on EU climate initiatives and
supporters of the U.K.’s green transition, we have
promoted captured CO2 as a tradable commodity. We
emphasize recognizing biogenic CO2 from sustainable
sources as carbon neutral and ensuring CO2’s value
chain accountability. We also advise on the U.K. CCUS
regulation, contributing to the Net-Zero Council to aid
in decarbonizing cement manufacturing, and aligning
with the U.K.’s net-zero goals. As part of Our Nature
Coalition, we support the EU Nature Restoration Law
to mitigate climate change and improve biodiversity
through nature restoration.
U.S. State and Federal Grants
Cemex participates in multiple government-sponsored
sustainability initiatives in the U.S., securing funding from
state and federal programs to deploy several lower-
emission vehicles. During 2024, the company added
into service a lower-emission locomotive at our New
Braunfels, TX, plant. Funding for the locomotive was
part of a US$13 million grant from the Texas Emission
Reduction Plan that added another three lower-emission
locomotives and two off-road trucks for our cement and
aggregate sites in New Braunfels and Katy, TX, in 2023.
Looking ahead, Cemex will continue its commitment
to protecting air quality by deploying additional
equipment in 2025. A US$2 million grant from the U.S.
Environmental Protection Agency’s Diesel Emissions
Reduction Act Program will allow for two lower-emission
locomotives to enter Cemex’s service in Miami and
Jacksonville, FL, in summer 2025.
Cemex Trade Association Climate
Advocacy Review
We are committed to working closely with our trade
associations in alignment with our climate action
advocacy priorities and the goals of the Paris
Agreement. Most recently, we evaluated our trade
associations and found we agree with the main
advocacy positions of the relevant global, regional,
and local associations of the cement industry. Our
findings are published in the Cemex Trade Association
Climate Advocacy Review.
ä Learn more about our Trade Association Climate Advocacy
Review.
62
Cemex 2024 Integrated Report
Contents
Our Company
Our Strategy
Financial Performance
Environmental Excellence
Future in Action: Achieving
Decarbonization Targets
Toward a Net-Zero Future
Sustainable Products and Solutions:
Expanding the Sustainability
Features of Our Products
Decarbonizing Our Operations:
Moving Rapidly to Achieve Our
Ambitious Goals
Circular Economy: Repurposing
Materials to Minimize Our
Environmental Impact
Water, Biodiversity, and Air Quality:
Building a Nature-Positive Future
Innovation and Partnerships:
Catalyzing Innovation Across
Our Business and Industry
• Promoting a Green Economy:
Using Our Voices to Accelerate
Action in Our Industry
Social Commitment: Accelerating
Our Responsibilities for a
Just Transition
Stakeholder Engagement
Governance
Appendix
Partnerships and Collaborations
Business Ambition for 1.5°C: Cemex signed this
commitment led by the We Mean Business Coalition.
Race to Zero Campaign: Cemex joined the United Nations
Climate Change Race to Zero campaign to rally leadership,
support, and mobilization of net-zero commitments.
First Movers Coalition: Cemex is one of 35 founding
members of this World Economic Forum coalition where
members have committed to zero emissions by 2030 in
30% of their heavy-duty on-highway transport purchase.
CFO Coalition for the SDGs: Cemex is a founding
member of this UN initiative, aimed at attracting more
capital to SDGs.
Corporate Leaders Group Europe: Cemex participates in
this organization convened by the University of Cambridge
Institute for Sustainability Leadership and the Green
Growth Partnership. This enables us to demonstrate
leadership in sustainability, engage in policy advocacy,
collaborate with peers, drive innovation, engage with
stakeholders, and build internal capacity for sustainable
business practices.
We Mean Business Coalition: Cemex supports the work
of this global nonprofit working with the world’s most
influential businesses to take action on climate change.
Mission Possible Partnership: Cemex and the Mission
Possible Partnership, along with the Bezos Earth Fund,
are collaborating to conduct an analysis of the potential
of decarbonization levers at Cemex’s Balcones cement
plant in Texas. This analysis aims to accelerate Cemex’s
commitment to achieving net-zero CO2 emissions by 2050.
Science Based Targets initiative: Cemex’s ambitious 2030
climate targets have been validated by this corporate
climate action organization, the foremost authority on
science-based climate action goals.
Ellen MacArthur Foundation Global: Cemex partners
with the Foundation, the world’s leading circular economy
network, to accelerate circular economy efforts in the built
environment.
Task Force on Climate-Related Financial Disclosures:
As a supporter of TCFD, Cemex has adopted its
recommendations for climate-related disclosures since 2019.
Climate Action 100 Plus: Cemex supports this investor-led
initiative intended for companies to achieve clear commit-
ments to cut emissions, improve governance, and strengthen
climate-related financial disclosures and transition plans in
order to create long-term shareholder value
We Advocate to Accelerate Climate Action
We believe industry collaborations are essential to accelerate the development of
climate action worldwide. We are active members with leadership positions in global,
national, and regional industry associations where we operate. Our engagement and
leadership give us a platform to advocate and educate, alongside other companies
in our industry, on important topics like promoting the use of concrete as an essential
material for sustainable construction.
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Cemex 2024 Integrated Report
Contents
Our Company
Our Strategy
Financial Performance
Environmental Excellence
Future in Action: Achieving
Decarbonization Targets
Toward a Net-Zero Future
Sustainable Products and Solutions:
Expanding the Sustainability
Features of Our Products
Decarbonizing Our Operations:
Moving Rapidly to Achieve Our
Ambitious Goals
Circular Economy: Repurposing
Materials to Minimize Our
Environmental Impact
Water, Biodiversity, and Air Quality:
Building a Nature-Positive Future
Innovation and Partnerships:
Catalyzing Innovation Across
Our Business and Industry
• Promoting a Green Economy:
Using Our Voices to Accelerate
Action in Our Industry
Social Commitment: Accelerating
Our Responsibilities for a
Just Transition
Stakeholder Engagement
Governance
Appendix
Memberships and Industry Associations
GCCA: Cemex’s chief executive officer, Fernando A.
González, is in his second year as president and has served
the organization since 2018 as vice president. His Decade
to Deliver agenda aims to accelerate decarbonization
within our industry.
Cembureau: Cemex is part of the senior advisory group of
the European Cement Association (Cembureau), lending
its technical expertise and advocacy to help share the
industry’s views on issues and policy development.
Portland Cement Association (PCA): Cemex serves
in numerous leadership positions for the association,
the premier policy, research, education, and market
intelligence organization serving U.S. cement
manufacturers.
Cámara Nacional del Cemento (CANACEM) in Mexico:
Cemex is an active member, holding many leadership
positions and collaborating with industry peers to advocate
and contribute to the sustainable development of the
cement industry in the country.
Federación Interamericana del Cemento (FICEM): This
Latin American organization represents the interests of the
cement industry in Latin America and the Caribbean. We
contribute to advocacy efforts, provide technical support,
and engage in sustainability initiatives on behalf of the
organization and our industry.
UN Global Compact: Cemex has been a signatory since
2004. We support collaborative efforts to accelerate
sustainability progress: CFO Coalition for SDGs, Just
Transition Think Lab, Transformational Governance,
Guiding Principles on Business and Human Rights, Women’s
Empowerment Principles, and Target Gender Equality
Accelerator.
World Economic Forum: Cemex serves in various working
groups and is a founding member of the First Movers
Coalition, where it is addressing pressing global challenges.
Alliance of CEO Climate Leaders: Cemex Chief Executive
Officer Fernando A González is a member of this global
community of CEOs committed to raising bold climate
ambition and accelerating the net-zero transition by
setting science-based targets, disclosing emissions, and
catalyzing decarbonization and partnerships across global
value chains.
World Green Building Council: Being part of this
organization and the U.S. Green Building Council aligns
with Cemex’s commitment to sustainability, innovation,
and responsible business practices, while also providing
opportunities for collaboration, advocacy, and market
recognition in the green building sector.
Mineral Products Association Cement (MPA): Cemex
is a member of this trade and research organization
representing the U.K. cement industry.
64
Cemex 2024 Integrated Report
Contents
Our Company
Our Strategy
Financial Performance
Environmental Excellence
Future in Action: Achieving
Decarbonization Targets
Toward a Net-Zero Future
Sustainable Products and Solutions:
Expanding the Sustainability
Features of Our Products
Decarbonizing Our Operations:
Moving Rapidly to Achieve Our
Ambitious Goals
Circular Economy: Repurposing
Materials to Minimize Our
Environmental Impact
Water, Biodiversity, and Air Quality:
Building a Nature-Positive Future
Innovation and Partnerships:
Catalyzing Innovation Across
Our Business and Industry
Promoting a Green Economy:
Using Our Voices to Accelerate
Action in Our Industry
• Social Commitment: Accelerating
Our Responsibilities for a
Just Transition
Stakeholder Engagement
Governance
Appendix
Social Commitment:
Accelerating Our Responsibilities
for a Just Transition
Our Approach: We aim for our stakeholders to actively participate
in this transformative journey to a low-carbon economy.
Our Future in Action climate action road
map is based on innovation, collaboration,
and social inclusion, and it fortifies our
commitment to an equitable and just
transition. Our commitment to sustainability
has long been an integral part of Cemex’s
business strategy, integrating smoothly
with the principles of a just transition.
This commitment involves transparent
and ethical decision-making, proactive
identification and management of
transition-related impacts across our value
chain, continuous engagement with our
diverse stakeholder groups, participative
design of inclusive policies, and business
practices that extend beyond achieving
company objectives.
Our focus pursues the well-being
of our employees, communities,
customers, and supply chain, including
vulnerable groups such as youth,
indigenous communities, and women.
As the world shifts to a low-carbon
economy, we recognize a just transition
as an important component of our
ongoing work within our climate action
road map. We pursue a just transition
through participative engagement with
our diverse stakeholders, innovation,
investment in training, and key alliances
and partnerships to foster skills through
access to green jobs, retention, upskilling,
reskilling, and redeployment as we
transition to net zero.
Our Workforce. We empower workers
through upskilling, reskilling, and creating
new job opportunities within a circular
economy. Through robust processes
enriched by listening mechanisms,
we identify areas for improvement in
capabilities, leadership, performance,
and overall employee experience.
This feedback informs the creation of
transition plans that foster continuous
workforce development and promote an
inclusive and equitable transition. Our
dedication to workforce development
is evidenced through a spectrum of
initiatives, including comprehensive
development programs, innovative
training platforms such as Cemex
University, scholarships, and more.
65
Cemex 2024 Integrated Report
Contents
Our Company
Our Strategy
Financial Performance
Environmental Excellence
Future in Action: Achieving
Decarbonization Targets
Toward a Net-Zero Future
Sustainable Products and Solutions:
Expanding the Sustainability
Features of Our Products
Decarbonizing Our Operations:
Moving Rapidly to Achieve Our
Ambitious Goals
Circular Economy: Repurposing
Materials to Minimize Our
Environmental Impact
Water, Biodiversity, and Air Quality:
Building a Nature-Positive Future
Innovation and Partnerships:
Catalyzing Innovation Across
Our Business and Industry
Promoting a Green Economy:
Using Our Voices to Accelerate
Action in Our Industry
• Social Commitment: Accelerating
Our Responsibilities for a
Just Transition
Stakeholder Engagement
Governance
Appendix
S P O T L I G H T : S O C I A L C O M M I T M E N T
Regenera Creates Opportunities,
Drives Sustainability
For many, a job is simply a means to
an end—a paycheck to cover expenses
and a little more. But for Juan, a safety
supervisor at Cemex, a job means much
more. It represents stability, confidence in
the future, and an enhanced quality of life.
Before joining Cemex, Juan took
recyclables to a waste facility in Mexico
City operated by Regenera Waste
Management. This Cemex division
converts waste and industrial by-
products into alternatives to fossil fuels
and natural raw materials. Through
Cemex’s partnership with the plant,
Juan was offered full-time employment
as part of the company’s just transition
initiative, which benefits employees
and communities in the journey toward
sustainability.
Juan’s entry-level Cemex role gave
him access to benefits, safety training,
personal protective equipment, and
career advancement programs—things
he knew nothing about in a previous job
as a solid waste collector. Not long after
joining Cemex, Juan was promoted to
safety supervisor, ensuring the safety of
activities related to transforming waste
into alternative fuels.
“It’s been the best work experience
I’ve had. Cemex gave me an incredible
opportunity, pushing me to be a better
person.”
Working at Cemex has given Juan a
greater appreciation for sustainability.
Learning how Cemex has reduced its CO2
emissions by utilizing alternative fuels,
planting trees, and engaging in other
initiatives has highlighted the importance
of caring for the environment. Inspired
by lessons on the job, it has also led to
eco-friendly practices at home, such as
reducing energy and water consumption
and teaching the next generation the
importance of waste separation to
prevent pollution.
“It’s satisfying to know that my
work contributes to environmental
protection and benefits my
community. I feel like I’m making a
real difference.”
Juan aspires to become a coordinator
someday. Thanks to Cemex’s support
and encouragement, this goal is within
reach.
“With Cemex, I’ve discovered more
than just a job—I’ve paved a path to the
future. As I continue to learn and grow,
new opportunities will arise, and I’m
eager for what’s on the horizon.”
Our Communities. Our commitment to
people extends beyond our workforce
to communities and local economies.
We actively engage in initiatives aimed
at promoting employability in a net-
zero economy. Collaborations with
governmental bodies, evidenced through
partnerships in the regions where we
operate, showcase our dedication to
fostering skills crucial for the future.
We provide digital skills programs to
equip individuals with newfound economic
opportunities and potential for social
mobility. These programs go beyond
technical skills to include training in essential
social and life skills that contribute to long-
term job retention.
Our Suppliers. Cemex values the integral
role of local small and medium enterprises
in our supply chain, comprising 60% of our
partners. As a United Nations (UN) Global
Compact Sustainable Supplier Impact
Program leader, we support suppliers to
identify and address sustainability gaps,
fortify our supply chain, and foster a broader
commitment to a fair and sustainable future.
Looking ahead, we remain committed
to exploring new avenues to support our
partners in their sustainable journey.
We aim to maximize the positive impacts
of our shift to a net-zero economy in line
with the Paris Agreement, the International
Labor Organization’s Guidelines for a Just
Transition, and respecting labor and human
rights, as outlined in our climate action
road map. We remain committed to the UN
Global Compact’s Forward Faster initiative,
accelerating private sector action to deliver
on the Sustainable Development Goals.
ä Take a closer look at the actions we continue to
take to achieve a just transition in our published
Position Paper.
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Cemex 2024 Integrated Report
Our Purpose
We place people at
the center of every
business decision we
make so they are
empowered to build
a more sustainable
world.
Stakeholder Highlights
60%
Small- and Medium-Sized
Enterprises
in our supplier network
~30M
Community Partners
across our operations
54
Employee Net Promoter Score
upward trend over past two years,
ahead of 2030 goal of 43, and well
above industry benchmark1
1 Per internal analysis utilizing available
industry benchmark information.
74
Customer Net Promoter Score
ahead of 2030 target of 70 and above
industry benchmark for B2B companies2
2 Retently 2024 NPS benchmark for B2B companies.
Stakeholder
Engagement
Workforce Experience: Investing in Our People to Unlock Their Potential
Customer Centricity: Driving a Superior Customer Experience
Supplier Networks: Building Strong Relationships, Fostering Mutual Value
Community Development: Engaging With Communities to Deliver Transformative Outcomes
66
Cemex 2024 Integrated Report
Workforce Experience:
Investing in Our People
to Unlock Their Potential
Our Approach: At Cemex, we invest in unlocking the full potential
of our workforce. We aim to cultivate a diverse, engaged, and loyal
global team enabled and capable of participating in our digital
transformation and our transition toward a sustainable economy.
SDGs:
Our efforts to provide our employees with
competitive compensation and a safe,
healthy, and respectful work environment
directly contribute to SDGs 5 and 8, as
well as our priority SDG 9, as we aim to
establish a workplace that can withstand
challenges, adapt to changes, and
contribute positively to the industry and
broader society over the long term.
Human Rights:
Cemex is committed to respecting
internationally recognized human rights of
employees by fostering a safe, inclusive,
and equitable workplace, including but
not limited to the right to safe and healthy
working conditions; the right to fair wages,
working hours, and employment practices;
the right to nondiscrimination; and the
right to data privacy.
54
eNPS
50
40
30
20
10
0
60
70
80
90
100
Workforce Experience Trends
Employee NPS (eNPS)
1 The eNPS global benchmark of 54 includes 32 brands
in the 75th percentile that have between 10,000 and
50,000 employees.
2 Cemex adjusted its industry benchmark analysis in
2024 to include consideration for global company
size and employment numbers. The new benchmark
includes 32 global brands in the 75th percentile with
between 10,000 and 50,000 employees.
Our global workforce comprises
employees, temporary personnel,
and contractors and is the driving
force as we offer products that
accelerate a sustainable world.
With more than 44,000 employees
globally, and additional third-party
staff working alongside us, we are
committed to cultivating a talented
and dedicated workforce.
Employee Experience Trend Reflects Increased Engagement
Through our Workforce Experience (We’X) survey, administered worldwide every
year as either a comprehensive or pulse survey, we learn what‘s important to our
employees. In 2024, our employee net promoter score (eNPS) of 54 placed us on par
with the global benchmark we use for like-sized companies.1 The 85%-plus survey
participation we achieved worldwide reflects our employees’ active involvement in
shaping a work environment where everyone feels valued and thrives.
Employee Experience Indicator
Employee Net Promoter Score
54
Cemex
2020
2021
2022
2023
2024
2030 Target
2024 Industry Benchmark2
20
30
40
50
60
Contents
Our Company
Our Strategy
Financial Performance
Environmental Excellence
Stakeholder Engagement
• Workforce Experience:
Investing in Our People to
Unlock Their Potential
Customer Centricity: Driving a
Superior Customer Experience
Supplier Networks: Building
Strong Relationships,
Fostering Mutual Value
Community Development:
Engaging With Communities to
Deliver Transformative Outcomes
Governance
Appendix
67
Cemex 2024 Integrated Report
Contents
Our Company
Our Strategy
Financial Performance
Environmental Excellence
Stakeholder Engagement
• Workforce Experience:
Investing in Our People to
Unlock Their Potential
Customer Centricity: Driving a
Superior Customer Experience
Supplier Networks: Building
Strong Relationships,
Fostering Mutual Value
Community Development:
Engaging With Communities to
Deliver Transformative Outcomes
Governance
Appendix
68
Cemex 2024 Integrated Report
Global Employee Composition
We continually strive to embrace diversity, a company value,
through the demographic makeup of our internal staff.
By Gender
Male
Female
By Generation
Traditionalist
Baby-boomers
Generation X
Millennials
Generation Z
By Seniority
Less than 1 year
1-5 years
5-10 years
More than 10 years
4%
6%
33%
57%
<1%
7%
34%
47%
12%
16%
84%
14%
42%
16%
28%
By Position
Senior Leadership
Middle Management
Entry-level
Operational
Gender Representation Continues to Progress
Women in Leadership Roles
In line with the UN Global Compact’s
Forward Faster initiative, we have
defined a road map for increasing gender
representation in our company. Our goal
is to achieve 30% women’s representation
in senior leadership positions by 2030,
and we are making steady progress.
This year, we updated our methodology
according to industry best practices to
more accurately reflect our organization’s
senior leadership levels.
External Recognition Highlights Our
Commitment to Gender Representation
In 2024, we received certifications and external recognition for our progress in
promoting gender representation across our organization. We are honored for these
acknowledgements and are committed to accelerating our work in support of our
gender representation road map. Some of this recognition includes:
EDGE Certification®
workplace gender equity
MEXICO
Diversity IN Check
recognized as winner in the 2024 survey
Responsible Business Forum,
coordinator of the Diversity Charter
POLAND
Equipos&Talento
joined Empowering Women’s
Talent program
SPAIN
MAMFORCE Certification
business standard for family
and gender balance
CROATIA
Board of Directors
Our Board includes two women who
serve on our Sustainability, Climate
Action, Social Impact, and Diversity
Committee.
Middle Management
Our middle management ranks
include 24% women.
Entry-Level
We ended 2024 with 35% women in
entry-level roles.
Operational Positions
In 2024, we increased to 5% women
serving in operational roles specific
to our industry.
23%
senior leadership
positions held
by women
as of 2024
Lean In Circles
To further create a culture of belonging, we
launched a global network pilot alongside our
affinity groups this year. This initiative brought
together 56 women in small employee-led groups
called Lean In Circles designed to support and
empower women in their personal and professional
growth. These circles focused on themes such as
career empowerment for working mothers and
leadership fundamentals for all women following
a six-month thematic curriculum from the U.S.-
based nonprofit organization Lean In. For our initial
pilot, results were outstanding: 75% of participants
said their participation helped them grow
professionally, and 90% felt they grew personally.
Based on this success, we now have Lean In Circles
in all regions with more than 350 participants.
S P O T L I G H T : L E A N I N C I R C L E S
Peer Groups Empower Female Leaders
to Break Barriers, Build Connections
When Yolmar, a Cemex project manager,
learned about Lean In Circles, small peer
groups designed to support and empower
women in their professional and personal
growth, she was intrigued.
With 35 years of leadership across the oil and
gas and cement industries, she had a firm
grasp of some of the challenges women
face in male-dominated fields. She thought
the Lean In Circles offered through Cemex
would allow her to connect with other
women to share and learn from one another
to further their careers.
“It’s essential for women to feel supported
and learn from someone who has gone
through similar situations. The Lean In Circles
offer a safe space to ask for guidance.”
Yolmar says the Leadership Fundamentals
Circle, designed for women to discuss and
sharpen their leadership abilities, helped her
hone her active listening skills and made her
more aware of her biases.
“The Lean In videos were enlightening,
making me aware of some of my biases and
how to think differently.”
Her participation in the Lean In program
inspired her to embrace diversity. As a result,
she joined Cemex’s DEI committee where
she helps foster stronger connections across
Cemex, reaching beyond email exchanges
and meeting colleagues she may not have
interacted with otherwise.
As a seasoned leader and mentor, Yolmar
has made it her mission to help more women
at Cemex step into leadership positions. She
believes the Lean In Circles are instrumental
in this process.
“Cemex Lean In Circles has given me valuable
tools to push for real change and encourage
women to reach their full potential.”
Construrama Network
As a company, we support women’s participation in the construction industry to close the
gender occupational gap, and our employees share this passion. We are leading the way
by leveraging the Construrama network, the largest construction materials distribution
network in Mexico and Latin America.
Launched in 2017 by Cemex, Mujer Construrama encourages the exchange of ideas
and experiences for advancing women’s talent and leadership in the construction
industry. Today, it’s one of the region’s most important annual summits to promote
business growth strategies and management and to recognize and celebrate women’s
participation in the construction industry.
75%
Lean In Circle pilot participants
who said they grew professionally
90%
Lean In Circle pilot participants
who felt they grew personally
“They inject us with positivity and a great desire to grow further.
They also recognize us as empowered businesswomen. We really
contribute to making our professional goals come true.”
– Mujer Construrama Summit participant
30%
of the 2,300-plus
Construrama points
of sale in Mexico led or
co-led by a woman
+330
women who joined the
Mujer Construrama
Summit in 2024
90%
Mujer Construrama
Summit participants
who would recommend
the event to colleagues
or friends
Contents
Our Company
Our Strategy
Financial Performance
Environmental Excellence
Stakeholder Engagement
• Workforce Experience:
Investing in Our People to
Unlock Their Potential
Customer Centricity: Driving a
Superior Customer Experience
Supplier Networks: Building
Strong Relationships,
Fostering Mutual Value
Community Development:
Engaging With Communities to
Deliver Transformative Outcomes
Governance
Appendix
69
Cemex 2024 Integrated Report
Contents
Our Company
Our Strategy
Financial Performance
Environmental Excellence
Stakeholder Engagement
• Workforce Experience:
Investing in Our People to
Unlock Their Potential
Customer Centricity: Driving a
Superior Customer Experience
Supplier Networks: Building
Strong Relationships,
Fostering Mutual Value
Community Development:
Engaging With Communities to
Deliver Transformative Outcomes
Governance
Appendix
70
Cemex 2024 Integrated Report
Our Respect for
Work-Life Balance
We continuously work to create
an environment where work-life
harmony and responsible digital
practices coalesce for our employee
experience. The wide range of
options to meet employee needs
includes flexible work schemes,
breastfeeding facilities, childcare
facilities or contributions, paid family
or care leave beyond parental
leave, and extended maternity and
paternity leave. We also actively
monitor work hours, overtime, and
schedules and have robust systems to
control shifts in our operations.
ä
Learn more about our well-being
programs offered to Cemex employees.
Continuous Learning Builds Capabilities,
Enables Workforce
Cemex University builds critical business and leadership capabilities for our workforce,
offering continuous learning opportunities aligned with our company’s values and
strategic priorities. While our core audience is our employees, we also offer skilling
and development opportunities for our third-party staff, customers, and suppliers.
Through Cemex University’s nine functional academies and our portfolio of Leadership
Development Programs, we offer traditional in-person training and best-in-class
digital learning.
Health and Safety Academy
Compels leaders and employees
to commit to a health and safety
culture in their daily routines
Commercial Academy
Guides commercial teams in fostering
successful customer interactions,
supporting our goal of providing a
superior customer experience
Sustainable Construction Academy
Supports customers in their
sustainable construction efforts
Digital Academy
Engages employees in driving
the company’s Digital Forward
transformation
Culture and Values Academy
Elevates ethics, compliance, and
adherence to our values into daily
activities
Supply Chain Academy
Supports collaboration and shared
decision-making to better serve
customers
Cement Operations Academy
Reinforces our commitment to
operational excellence for all
future plant managers
Sustainability Academy
Provides employees a deep
understanding of our Future in Action
program and connects their actions
to our net-zero company vision, and
helps suppliers develop their own
sustainability plans
Procurement Academy
Aids employees’ understanding
of the strategic role procurement
plays throughout our business
Leadership Development
Programs
Provides leaders with a variety of
programs to enhance capabilities
and competencies in their roles
throughout their careers
20,500
active learners in Cemex University
+96,000
courses completed during 2024
New
Since its launch, Cemex
University has experienced more
than a 6x increase in yearly
participation, with an average
net promoter score of 75.
Contents
Our Company
Our Strategy
Financial Performance
Environmental Excellence
Stakeholder Engagement
• Workforce Experience:
Investing in Our People to
Unlock Their Potential
Customer Centricity: Driving a
Superior Customer Experience
Supplier Networks: Building
Strong Relationships,
Fostering Mutual Value
Community Development:
Engaging With Communities to
Deliver Transformative Outcomes
Governance
Appendix
71
Cemex 2024 Integrated Report
Leadership Development Programs Prepare Leaders
to Support Business Priorities
Developing our leaders is instrumental in our success as a company. We have four
core leadership development programs that touch our leaders at various levels
of their career journeys. Each course is designed to nurture their growth and
development while enabling us to meet our business objectives.
CONNECT
Designed for first-time managers, this
course connects managers to their
purpose, their teams, the company,
and the ecosystem in which we
operate.
ASCEND
Established managers learn critical
leadership skills to engage and
mobilize their teams and activate their
extended personal network.
IGNITE
Senior directors in our company
discover new ways of thinking, acting,
and reacting to their day-to-day roles
while uncovering how to thrive in ever-
changing environments.
ENVISION
Executive leaders engage in strategic,
complex issues facing the organization
while honing dynamic, enterprise-level
leadership skills.
Inspire Talent
Connect to Strategy
& Purpose
Drive Performance
Build Capability
Exercise Influence
Enhance Collaboration
Grow Value
Innovate & Change
Cemex
Global
Leadership
Model
Energizing
Empowering
Growing
Mobilizing
Leadership Development Model
Just as our business has evolved, so has the focus of our leadership development model.
This year, we made updates to further energize and empower our teams, mobilize the
organization, and continue generating company value. We’ve artfully aligned capability-
building programs and supporting behaviors with Cemex’s strategic business priorities to
address current challenges and focus areas within the company.
Contents
Our Company
Our Strategy
Financial Performance
Environmental Excellence
Stakeholder Engagement
• Workforce Experience:
Investing in Our People to
Unlock Their Potential
Customer Centricity: Driving a
Superior Customer Experience
Supplier Networks: Building
Strong Relationships,
Fostering Mutual Value
Community Development:
Engaging With Communities to
Deliver Transformative Outcomes
Governance
Appendix
72
Cemex 2024 Integrated Report
Digital Movers Program
This year we launched the Digital Movers program to advance
our Digital Forward transformation. Our goal is to create digital
champions throughout our business areas and geographies to
influence the use of digital solutions and enable our employees
to address business challenges.
Developed in collaboration with Emeritus, MIT xPRO, and
Imperial College London, the eight-month learning journey
teaches critical-thinking skills, systems architecture, AI,
innovation, and more. The first cohort of 54 employees
participated in online self-learning, live sessions, a five-day
residency, and a team project that was pitched to executives for
sponsorship consideration. Future plans include a second cohort
of Digital Mover champions, sponsorship of select projects, and
digital strategy sessions for our executive team.
Cemex University Receives
Accolade for Best
Compliance Training
The ETHOS: Doing the Right Thing
courses at Cemex University are
designed to integrate ethics and
compliance into the daily work of
employees. These courses are part
of Cemex’s institutional program,
ETHOS, which aims to embrace
top-tier standards of corporate
behavior and promote actions that
strengthen a culture of integrity. This
is the seventh Brandon Hall Group™
Human Capital Management award
received by Cemex.
2024 HCM Excellence Award®, Gold
ETHOS: Doing The Right Thing series
Best Compliance Training
Micro-Learning Pilot
To engage our deskless employees,
we piloted a micro-learning platform
this year with more than 750 hourly
workers in Mexico. This online learning
course covered ethics topics, including
key ETHOS messages, which were well
received by learners. We will continue
to explore innovative technologies to
enhance employee connections and a
continuous learning culture.
S P O T L I G H T : D I G I T A L M O V E R S
Participants of Innovative Learning Program Pioneer the Future of Cemex
The genesis of Digital Movers, a hybrid
learning program to enhance employees’
digital knowledge and skills, came as Cemex
sought to accelerate its Digital Forward
transformation. Designed to foster a culture
of innovation, participants become digital
champions who can influence Cemex’s
continued growth by leveraging the energy
and power of digital.
As its participants can attest, the program is
more than just a professional development
initiative. It catalyzes change and reimagines
the business, leveraging technology such as
artificial intelligence to remain competitive.
The program’s alumni view themselves
as “pioneers,” creating a path for the
company’s future, influencing its direction,
and generating value where it counts
the most. The following interviews with
participants reflect common themes on the
meaning of becoming a digital champion
within the company:
Agents of Change
“Digital Movers is about fostering the digital
movement and becoming a change agent for
Cemex.”
“It is a movement driven by energy,
collaboration, and a shared purpose.”
Thinking Creatively
“When you create new things, you become
more agile in your daily job and tasks, and
by doing so together, we can reach the
company’s goals.”
“The Digital Movers program showed me
that we need to be innovative and create
solutions to help the company progress to
the next level.”
New Networks of Co-Workers
“Even though I may not be an expert in a
specific area, I know where to seek help and
whom to ask for support. Digital Movers
encourages us to depend on one another to
achieve results.”
“I think it has helped a lot with networking.
Getting to know all these amazing and
talented people working together to
transform Cemex has been rewarding.”
As Digital Movers, these leaders are not
only adapting to change—they are driving
it, inspiring it, and positioning Cemex at the
forefront of the industry. With each new
cohort, the program continues to cultivate
a strong community of forward-thinking
professionals eager to lead the company
into a new era of digital excellence.
Contents
Our Company
Our Strategy
Financial Performance
Environmental Excellence
Stakeholder Engagement
• Workforce Experience:
Investing in Our People to
Unlock Their Potential
Customer Centricity: Driving a
Superior Customer Experience
Supplier Networks: Building
Strong Relationships,
Fostering Mutual Value
Community Development:
Engaging With Communities to
Deliver Transformative Outcomes
Governance
Appendix
73
Cemex 2024 Integrated Report
Talent Development Reinforces Our Sustainability Goals
With our Future in Action program as the foundation, we continue to align our organizational
design, tie a portion of variable compensation to the achievement of our CO2 emissions
reduction goals, and promote sustainability training. This propels us toward our
environmental objectives, serves as a powerful engagement tool, and fosters a shared
commitment as we transition toward a sustainable economy.
Organizational Design
Our robust organizational design supports
our sustainability goals across the
company. Our operating and technical
teams have adopted specific road maps,
initiatives, and processes that support our
Future in Action program. As we continue
to evolve and enhance our structure, we
also accelerate actions that help us meet
our climate targets.
Executive Variable Compensation
Our Executive Variable Compensation
program includes a CO2 emissions
component related to our ambitious
carbon reduction goals. More than
4,400 executives, which represents more
than 10% of our global employees, are
eligible for this program. We continue to
make progress in achieving our net-zero
emissions goal.
While regional objectives vary, executing
in support of our CO2 targets carries
a weighting of +10% or -10% in annual
executive variable compensation. Annual
executive variable compensation is
determined based on overall business
performance and individual performance
management outcomes, which includes
achievement of goals and adherence to
our values.
Competitive Compensation,
Benefits Packages
We believe that our competitive
compensation and benefits packages are
key contributors to a superior employee
experience. Every two years we evaluate
our local competitiveness, inside and
outside our industry, in the markets
where we operate. Our learnings help us
detect areas of opportunity, like trends in
specialized roles, provide benchmarks to
ensure we remain competitive, and allow
us to close gaps during our annual salary
review process.
Our benefits programs include health
and wellness, financial and retirement,
time off and leave, and work-life balance
schemes, such as flexible working hours.
We constantly monitor and review our
benefits offerings to ensure we meet the
needs of our employees.
Talent Management
Our talent management cycle has a set of three interconnected processes:
Performance management, talent review, and succession management. Working in
concert, these processes maximize our organization’s performance potential. They
also help us make informed decisions on staffing choices, participation in leadership
development programs, and potential challenges or gaps in our global talent needs.
Serving as our guide, these processes lead us toward effective and forward-thinking
initiatives while fostering continuous talent development.
Performance Management. Our Performance Management Process
cascades goals to the organization, starting with the CEO, aiming to
ensure that individual and team goals align with our company values and
priorities. We use a 360-degree evaluation, a comprehensive feedback
process, where supervisors and employees engage in a performance
assessment to discuss what they achieved, complemented with multiple
perspectives on how they achieved it, based on our six corporate values.
Our continuous feedback loop empowers our employees and supervisors
to discuss, set, and evaluate performance goals collectively. These
collaborative discussions foster personal and professional growth aligned
with our evolving organizational needs.
Talent Review. Our Talent Review Process relies on insights gathered
from our performance management results. This process encourages
an equitable and thorough evaluation of employees using two criteria:
Performance and promotion readiness. Leaders engage in employee
discussions and calibration with peers, listening to different perspectives
and defining development plans. This approach provides supervisors
with a holistic evaluation of their team members, which is then shared
individually during feedback sessions, promoting a culture of continuous
improvement.
Succession Management. Succession Management leverages insights
from the talent review conversations and enables us to build a talented
pool of leaders with functional skills and business understanding to
successfully implement our strategy. One of our main objectives is to
identify and develop people with the potential to fill leadership positions.
We strive to offer them opportunities to build experience and capabilities
while strengthening our talent pipeline. This allows employees to meet
career development expectations, challenges them with new professional
development opportunities, and prepares them for future roles.
Contents
Our Company
Our Strategy
Financial Performance
Environmental Excellence
Stakeholder Engagement
• Workforce Experience:
Investing in Our People to
Unlock Their Potential
Customer Centricity: Driving a
Superior Customer Experience
Supplier Networks: Building
Strong Relationships,
Fostering Mutual Value
Community Development:
Engaging With Communities to
Deliver Transformative Outcomes
Governance
Appendix
74
Cemex 2024 Integrated Report
Embracing Diversity:
One of Our Essential Cultural Drivers
We continually strive to create an inclusive and respectful
workplace that values diverse teams encompassing a broad
range of characteristics, including gender identity, age, race,
religion, disabilities, and beyond.1 Our diverse teams help
foster an environment that encourages various perspectives,
backgrounds, and life experiences.
DEI Framework
Our updated DEI framework places our program goals at
the center to guide alignment with common goals and help
to maintain a diverse, equitable, and inclusive workplace.
Board of Directors and Sustainability, Climate Action,
Social Impact, and Diversity Committee
Thoroughly reviews our DEI program performance
and annual plans.
Chief Diversity Officer
Our CEO, members from our Executive Committee,
and Human Resources team set the company’s
DEI strategy, oversee progress, and review
our performance.
Leads efforts to create a diverse, equitable,
and inclusive workplace culture mirroring
the communities where we operate.
Comprised of HR executives, senior
managers, and employee volunteers
who share local perspectives,
contribute to local initiatives,
and address specific challenges.
Business Unit Committees
DEI Advisory
Committee
D
at
a
&
A
n
al
yt
ic
s
DEI
Program
Goals
Collaboration
& Operating
Model
Awareness &
Engagement
Enablement
Programs
Guidelines
& Processes
D
at
a
&
A
n
al
yt
ic
s
81%
employees agree everyone can succeed
to their full potential, no matter who
they are or where they come from
2024 We’X Survey
Collaboration and Operating Model
Governance of our DEI framework includes an
essential structure and oversight to facilitate the
effective implementation of each component.
For us, DEI is a collective responsibility that starts
with leadership, striving for our values to resonate
throughout the organization. Our governance model
fosters an inclusive culture, advocating for equal
opportunities, and upholding accountability across
all organizational levels.
While our DEI strategy operates globally, our
initiatives are tailored to meet local needs across
our operations. More than 100 executives from
every region actively participate in local diversity
committees. Their responsibility is to collaboratively
design local initiatives that address specific
challenges and align with existing DEI practices.
1 For a comprehensive list, please refer to our Global Workplace Diversity,
Equity & Inclusion Policy.
86%
employees feel they belong
at Cemex
2024 We’X Survey
Contents
Our Company
Our Strategy
Financial Performance
Environmental Excellence
Stakeholder Engagement
• Workforce Experience:
Investing in Our People to
Unlock Their Potential
Customer Centricity: Driving a
Superior Customer Experience
Supplier Networks: Building
Strong Relationships,
Fostering Mutual Value
Community Development:
Engaging With Communities to
Deliver Transformative Outcomes
Governance
Appendix
75
Cemex 2024 Integrated Report
Guidelines and Processes
Cemex is committed to providing nondiscriminatory recruitment processes, facilities, and
services to meet accessibility requirements globally and locally. Our established global
policies, processes, and platforms sustain this commitment and are available internally and
externally in our Policy Center and the DEI section of the Cemex website. We also provide
visibility to internal and external applicants for open positions at any of our locations
through our website’s Global Job Site section.
• Policies and Guidelines. Our global policies and guidelines on DEI include the following:
Global Workplace Diversity, Equity, and Inclusion Policy; Global Workplace Non-
Discrimination, Non-Harassment, Non-Bullying, and Non-Retaliation Policy; Global
Guidelines on Work Leaves for Cemex Employees; Flexible Work Schemes Global Policy;
and our Global Recruitment Policy.
• Processes. To support our ongoing efforts and commitment to DEI, we have
implemented several processes to ensure that our strategy is effectively executed,
including unbiased recruitment, succession planning, and equal pay assessment.
Enabling a Culture That Embraces Diversity
Embracing diversity runs deep throughout our organization starting with our Board of
Directors. To date, more than 9,300 employees have been trained on DEI topics. We
also offer inclusivity training for employees through Cemex University.
Our inclusive courses include:
Board Readiness
Our Board readiness program strives
for everyone at Cemex, including our
Board members, to be aligned with our
values and aspirations.
Inclusive Leadership Course
As of 2024, more than 4,000 people
managers have participated in this
tailor-made in-house program to create
awareness of inclusion in the workplace
while teaching leadership styles.
Global Leadership
Development Programs
These flagship programs aim to develop
our future leaders and incorporate DEI
concepts and conversations to foster a
profound reflection.
Unconscious Bias Training
Unconscious bias training for managers
builds awareness and provides tools
to eliminate potential discriminatory
behaviors. Nearly 900 employees
completed the training in 2024, with
more than 7,500 employees trained
since 2019.
Cemex University Culture
& Values Academy
This academy helps employees
learn about Cemex and how we
practice our values, ethics, diversity,
and compliance. More than 15,400
employees completed over 35,700
courses during 2024.
Enablement Programs
Cemex strongly encourages managers to build their leadership capabilities and provides
ongoing employee development opportunities. The company also emphasizes compliance
with its policies and local regulations, and when necessary, requests employees to attend
essential training sessions with written confirmation of participation. The identification of
employees in need of training is managed internally. Additionally, audits to verify policy
compliance may be conducted, aligning with our commitment to fostering an inclusive and
respectful workplace.
Awareness and Engagement
• Listening to Our Workforce. Our Workforce Experience (We’X) Survey includes a subset
of items that provide valuable feedback to measure our progress and opportunities for
improvement.
• UN Global Compact Women’s Empowerment Principles. We are signatories to the UN
Global Compact Women’s Empowerment Principles, a guidepost to promote women’s
empowerment in the workplace, marketplace, and community. Participating provides
valuable insights into the gaps we need to address to continue advancing our DEI
framework and reinforce our commitment to promoting equality and representation
within our company. We also continue to be signatories to the UNGC’s Forward Faster
gender chapter.
Accelerating Impact
Tracking progress on our DEI actions enhances our decision-making and holds us
accountable for achieving our desired impacts.
• Unbiased Recruitment Processes. Our structured recruitment processes help us eliminate
bias and select candidates based solely on their qualifications and skills.
• Equal-Pay Assessment. This year, in collaboration with our third-party provider Korn
Ferry, we conducted a gender pay analysis. Results confirm Cemex’s pay equity falls
within the normal variance range for large employee populations and aligns with our
commitment to equitable pay across our markets. As part of our ongoing compensation
management processes, we make necessary adjustments to correct unintended pay
discrepancies and ensure market competitiveness. We will continue to monitor and
report on our processes and analyses periodically to uphold our goal of compensating
our employees equitably based on their accountabilities, skills, experience, performance,
and geographical location.
• Benchmarking Our Progress. We collaborate with third parties aiming to uphold the
highest DEI standards. As part of our efforts, we’ve participated in McKinsey’s Women
Matter program in several regions and have gained a broader perspective on potential
actions to accelerate change within our company.
Customer Centricity:
Driving a Superior
Customer Experience
2019
2020
2021
2022
2023
2024
50
40
30
60
70
80
2030
Target
74
Cemex
2030 Target
Industry Benchmark1
74
NPS
50
40
30
20
10
0
60
70
80
90
100
Our Approach: We have an unwavering focus on delivering a
superior customer experience that helps our customers reach their
goals and is a powerful differentiator for our company.
SDGs:
Our strong commitment to supporting
our customers’ success and providing a
superior experience aligns with SDG 8,
and our determination to build sustainable
cities and communities contributes to our
priority SDGs 9 and 11.
Human Rights:
Cemex is committed to respecting human
rights across its business relationships
and is dedicated to identifying, assessing,
responding, remediating, and monitoring
human rights, responding to risks and
potential adverse impacts resulting from
Cemex’s business activities, operations, and
relationships. We expect and require third
parties with whom we do business to comply
with our Human Rights Policy and respect
internationally recognized human rights and
standards.
Voice of the Customer
Program Guides Our Actions
Our commitment to continuous improvement
in customer experiences is driven by our
Voice of the Customer Program, which
serves as the cornerstone of our approach.
By engaging in rich discussions, actively
listening, and gathering insights through
customer relationship and transactional
surveys, we address customer challenges
with the support of regional multidisciplinary
Service Committees.
We are also accelerating digital solutions to
provide our customers with a more seam-
less way of connecting with us. Whether it’s
through our Smart Service Centers, com-
mercial advisors, or Cemex Go, we strive
to give customers consistent experiences,
answers, offers, and product availability
across the channel of their preference.
Customer Journey Experience
Our Customer Journey Experience
(CJE) program further deepens our
understanding of the customer experience
by enabling employees to walk in their
customers’ shoes, observing, listening, and
experiencing the moments of the customer
journey with greatest opportunity for
improvement. This immersive exploration
uncovers critical insights, helping us priori-
tize and implement initiatives that enhance
both customer and employee experiences.
As of 2024, over 2,800 employees have
participated in the program.
For the past four years, our NPS has
been above industry benchmark.1 We
continue to achieve our 2030 NPS
target in 2024.
1
Retently 2024 NPS Benchmarks for B2B companies.
Customer Experience Trends
Measured by Net Promoter Score Methodology
2019
2024
~90%
of customers
recurrently used
Cemex Go
~60%
of global orders
processed through
Cemex Go
~80%
paperless
invoices
10
countries with
Cemex Go Link
► ► ► ► ► ► ► ► ► ► ► ► ► ► ► ► ► ► ► ► ► ► ► ► ►
Cemex Go Adoption Orders
Key Customer Experience Indicators
Net Promoter Score
76
Cemex 2024 Integrated Report
Contents
Our Company
Our Strategy
Financial Performance
Environmental Excellence
Stakeholder Engagement
Workforce Experience:
Investing in Our People to
Unlock Their Potential
• Customer Centricity: Driving a
Superior Customer Experience
Supplier Networks: Building
Strong Relationships,
Fostering Mutual Value
Community Development:
Engaging With Communities to
Deliver Transformative Outcomes
Governance
Appendix
We take the pulse of our customers’ sentiments about sustainable construction
as part of Cemex’s customer relationship survey. We incorporate this feedback
into our action plans of the Future in Action program, enabling us to take
concrete steps toward addressing our customer needs.
Enhanced Knowledge Enriches Customer Experience
Continuous learning is a hallmark of our employees’ growth and development, and our
technical teams are no exception. We reinforce a customer-centric mindset across our
technical teams worldwide while also cultivating our customers’ knowledge of sustainable
construction. By having this win-win approach, we aim to accelerate our contribution to
building a sustainable world.
Early Engagement Initiative
Our extensive experience in the building materials industry has shown that integrating our
solutions in the early stages of a project significantly enhances its sustainability, efficiency,
and performance. To maximize these efforts, we continuously enhance our teams’ expertise
through the Early Engagement initiative, which provides technical and functional training
sessions and best practice sharing across all regions. This program lets us build significant
relationships with a broad network of construction professionals, allowing us to position our
technically advanced value propositions and products and solutions with sustainable attributes
at a critical stage in the project design. We also reinforce our commercial teams’ knowledge of
green building standards, enabling them to guide customers in applying for green certifications
like LEED, BREEAM, EDGE, and DGNB.*
Cemex University Commercial Academy:
Boosting Knowledge of Sustainable Construction
Leap Sales Program
Our commercial teams worldwide have access to a comprehensive learning
program to help them become trusted advisors. The program provides a tailored
learning experience for our commercial advisors and managers, helping us further
align our teams with our customer-centric mindset. To complement their training,
they also have access to five specialized master classes on sustainable construction
carefully curated by our team of experts, providing our teams with the needed tools
to be up to speed on sustainable construction and how our Vertua® portfolio of
products and solutions with sustainable attributes fit in this landscape.
In 2024, we released two new master classes in all regions, completing the rollout
of the program. Nearly 2,000 advisors and managers have participated in this
continuous learning program since 2021.
Concrete Solutions for Sustainable Construction
This is the first free, open enrollment course developed by Cemex University and
its commercial team for construction professionals. The training helps increase
knowledge and understanding of how our products and solutions with sustainable
attributes can help our customers achieve their sustainability goals. By the end of
2024, over 750 participants from the U.K., Mexico, Colombia, and Spain enrolled
in the course. Our plans include extending the availability to Nicaragua and the
U.S., where continued education credits will be offered for those who meet the
completion criteria.
*Leadership in Energy and Environmental Design (LEED), Building Research Establishment Environmental Assessment Methodology
(BREEAM), Excellence in Design for Greater Efficiencies (EDGE), and German Sustainable Building Council (DGNB).
77
Cemex 2024 Integrated Report
Contents
Our Company
Our Strategy
Financial Performance
Environmental Excellence
Stakeholder Engagement
Workforce Experience:
Investing in Our People to
Unlock Their Potential
• Customer Centricity: Driving a
Superior Customer Experience
Supplier Networks: Building
Strong Relationships,
Fostering Mutual Value
Community Development:
Engaging With Communities to
Deliver Transformative Outcomes
Governance
Appendix
78
Cemex 2024 Integrated Report
Contents
Our Company
Our Strategy
Financial Performance
Environmental Excellence
Stakeholder Engagement
Workforce Experience:
Investing in Our People to
Unlock Their Potential
• Customer Centricity: Driving a
Superior Customer Experience
Supplier Networks: Building
Strong Relationships,
Fostering Mutual Value
Community Development:
Engaging With Communities to
Deliver Transformative Outcomes
Governance
Appendix
Cemex Go Ecosystem
Cemex Go is our global flagship omnichannel platform. It integrates our online store/app, salesforce, and
service centers to provide a consistent digital-first customer experience regardless of channel. As a company
that prioritizes offering robust digital solutions in the construction materials industry, we strive to maintain our
leadership position with our end-to-end solution in the quote-to-cash process, available in most of our operations.
Ready-Mix Go. This innovative mobile
platform empowers customers to
take full control of their ready-mix
order journey. It offers a seamless
experience through advanced
features such as online order
placing or modification with instant
availability validation, e-signature
capabilities for tickets, immediate
access to electronic proof of delivery,
and real-time tracking of the order.
Professional and Self-Builders Virtual Store Front.
Our virtual store front (VSF) delivers a full ready-mix
experience for contractors and self-builders through a
simple and fast e-commerce platform. Features of the
platform guide them to select the right concrete prod-
ucts, place orders, and pay online using cash or card, all
in half the time. This allows us to continue expanding our
footprint in key markets while seeking higher profitability
per order. Currently, the VSF is available in Mexico, the
U.S., the U.K., and Colombia.
E-Commerce Solutions.
Construrama.com is boosting
our Construrama system, one
of the largest building materials
distribution networks in Mexico.
Today, more than 2.8 million
online users purchase more than
54,000 product variations via
website or app.
Cemex Go Link. This interface
allows customers to interact
directly with our systems via
digital platforms and application
programming interfaces (APIs).
By allowing systems to
communicate with each other,
Cemex Go Link helps customers
from all geographies reduce
operating costs, optimize internal
processes, and automate tasks such
as orders, invoices, and payments.
Going Paperless. Cemex’s
paperless strategy enhances
productivity and saves
resources by encouraging the
digitalization of internal and
customer processes. As of
2024, approximately 80% of
our invoices were delivered
digitally, putting us on track to
ultimately become paperless.
Artificial Intelligence. Artificial Intelligence (AI) optimizes
our commercial team’s efforts and transforms customer
service across touchpoints, streamlining transactions for
a seamless user experience. Analytics decode customer
interactions, proposing service enhancements, while an
AI-driven visibility app enables personalized conversa-
tions by identifying customers and providing contextual
information. Intelligent routing boosts productivity,
directing customers to suitable agents. Beyond service,
AI drives our dynamic pricing engine, adjusting prices in
real-time based on market conditions. At the forefront of
our commitment, AI delivers personalized, efficient, and
data-driven solutions. Future aspirations include using AI
to assist customers with order forecasting.
Digital Solutions:
Key to Superior Customer
Experience
Digital is a powerful enabler of the
superior customer experience we aim
to deliver. Our goal is to surround our
customers with a seamless, omnichannel
way to do business with us. This means
providing the same experience, answers,
offers, and product availability across
channels while maintaining personalized
human connections. To accomplish this,
we continue to automate transactional
interactions with our clients, enabling us to
focus on higher value customer activities.
A superior customer experience is
at the heart of our global Digital
Forward initiative. We began our
digital journey with our commer-
cial business, aiming to create a
seamless customer experience. We
are building a culture where every
employee is a digital promoter, with
our Digital Movers propelling this
transformation.
79
Cemex 2024 Integrated Report
Contents
Our Company
Our Strategy
Financial Performance
Environmental Excellence
Stakeholder Engagement
Workforce Experience:
Investing in Our People to
Unlock Their Potential
• Customer Centricity: Driving a
Superior Customer Experience
Supplier Networks: Building
Strong Relationships,
Fostering Mutual Value
Community Development:
Engaging With Communities to
Deliver Transformative Outcomes
Governance
Appendix
Cemex Go Acceleration Program
To create momentum for complete digital
adoption among our customers, we launched
the Cemex Go Acceleration Program in 2023
with a pilot in Houston. In 2024, we extended
the pilot to customers from other markets
and business lines in the U.S., such as the
Phoenix and Southern California areas and
the U.K. This year we achieved 75% of digital
orders adoption from our pilot customers
with automation levels above 50%, with plans
to expand in more markets in 2025.
Smart Service Centers
We are also strengthening our Service
Centers by standardizing our model and
upgrading our technology. This year, we
set a special focus on professionalizing
our quality and workforce management
practices and rolling out a new customer
visibility platform in the U.S. and the U.K.
that gives agents real-time customer
information as calls come in. Agents now
have an immediate view of the customer’s
profile so they can react more quickly.
These optimizations help streamline our
processes and further professionalize our
service in the eyes of the customer, while
continuously improving the experience our
agents provide.
Customer Relationship Management
Cemex Go Customer Relationship
Management (CRM) is our commercial
advisors’ main digital tool that helps them
manage customer relationships more
efficiently and systematically, currently
available in multiple geographies. This
year, our commercial teams advised our
customers better on our service delivery
through data-driven sales forecasting and
cross-selling.
Quoting Management
We continue making significant strides in
enhancing the digitalization and automation
of our quoting process and price integration
to improve customer and employee
experiences. Our efforts are focused on
tailoring the quoting experience to meet the
diverse needs and purchasing behaviors of
our customers. For those who occasionally
purchase from us, we offer convenience.
For frequent buyers seeking the best market
price, we provide transparency. For project-
based customers, we deliver offers that best
fit their project specifications and budget.
Our goal is to make the quoting experience
timely, accurate, and transparent across all
our purchasing platforms, becoming a driver
for sustainable growth and long-term value.
Excellent Customer
Experiences Recognized,
Rewarded
Memorable Moments
Started in Mexico, this regional initiative
encourages employees to form meaningful
relationships with internal and external clients
by creating memorable moments in their dai-
ly activities. Whether it’s celebrating a birth-
day or an important milestone, this initiative
fosters a mindset that every interaction with
a customer is an opportunity to create a
memorable experience. Cemex recognizes
Ambassadors of Memorable Moments as
those who offer exceptional experiences
aligned with our customer-centric culture.
Customer Experience Day
This year’s fourth global Customer
Experience Day celebration united em-
ployees from across our regions to learn
how digitalizing our core processes delivers
superior customer experiences. Going
beyond the day’s celebration, we continued
to share insights and case studies from
external speakers to illustrate digitalization
best practices. This Cemex tradition has
brought together over 8,500 employees
from across our regions over the years.
Superior Customer Experience Awards
We continue to recognize employees who
provide outstanding customer experiences
through our Superior Customer Experience
Awards. This global awards program unites
colleagues from all our geographies and
incentivizes best practices to continuously
improve our customer experience. Since
its inception in 2019, more than 1,300
customer-centric implemented initiatives
have been brought forward, showcasing the
organization’s immense focus on improving
our customer experience. More than 300
teams participated this year, with two
remarkable projects recognized for their
role in digitalization: The Cemex Go Cement
Connections implementation in the U.S. and
process recommendations of our MIX3R
value propositions in Trinidad and Tobago.
“I use Cemex Go in my day-to-day business. I like the ability to track and
manage the pour from the field. It’s unique in the industry and makes things
easier for us. Definitely sets Cemex apart from the competitors.”
– U.S. region customer on Cemex Go User experience
S P O T L I G H T : R C O N S T R U C T I O N
Cemex Go App
Unique in Industry
Accurate and speedy concrete
orders are a tap away on the
Cemex Go app. Project
managers place their order,
receive confirmation within
minutes, and can track
estimated time of arrival.
80
Cemex 2024 Integrated Report
Contents
Our Company
Our Strategy
Financial Performance
Environmental Excellence
Stakeholder Engagement
Workforce Experience:
Investing in Our People to
Unlock Their Potential
Customer Centricity: Driving a
Superior Customer Experience
• Supplier Networks: Building
Strong Relationships,
Fostering Mutual Value
Community Development:
Engaging With Communities to
Deliver Transformative Outcomes
Governance
Appendix
Supplier Networks:
Building Strong Relationships,
Fostering Mutual Value
Our Approach: We build strong and responsible relationships with
our suppliers based on trust, respect, and mutual value.
SDGs:
Our work with our suppliers toward
fostering continuous innovation and
sustainable practices supports SDG 8 in
addition to our priority SDGs 9, 11, and 13.
Human Rights:
Cemex is committed to respecting human
rights across its operations and supply
chain and is dedicated to identifying,
assessing, responding to, remediating, and
monitoring human rights risks and impacts
resulting from Cemex’s business activities,
operations, and relationships. We expect all
third parties we do business with to comply
with our Human Rights Policy and respect
internationally recognized human rights
and standards.
Supplier Relationships
Align With Our Principles,
Policies, and Values
Suppliers’ Code of Ethics and Conduct
We manage our supplier relations in
accordance with applicable laws and
regulations while fostering a culture of
integrity, honesty, respect, transparency,
and open communication. Our principles
and values are designed to promote
an understanding of our policies and
code of ethics and conduct, which all
suppliers must follow. To comply with
our registration process, suppliers must
acknowledge fundamental policies that
guide how they do business with us:
• Code of Conduct When Doing Business
With Us, embedded in our membership
and commitment to the Global Cement
and Concrete Association (GCCA)
• Code of Ethics and Business Conduct,
which includes our Human Rights Policy
• Global Anti-Corruption Policy
• Global Anti-Money Laundering Policy
ä Learn more about our supplier policies.
Contractor Health
and Safety Verification
Program
Our suppliers must adhere to Cemex’s
Contractor Health and Safety
Verification Program. These rigorous
health and safety standards include
proper training and relevant accredi-
tations. Contractors are not permitted
to work on our premises when they fall
short of verification.
ä Learn more about our Contractor Health
and Safety Verification Program and
compliance.
Small- and Medium-Sized Enterprises
We rely heavily on local small- and medium-
sized enterprises (SMEs) and believe that
companies in our industry should prioritize
supporting these businesses within their
supply chain. Our dedication to SMEs
provides them with a deep understanding
of their role in sustainable development and
helps them navigate business challenges,
such as limited capital and technological
expertise, confidently. This fortifies our
supply chain and promotes a just transition
to a carbon-neutral economy. Our
collaborative approach underscores our
dedication to sustainable construction,
strengthens our supply chain resilience, and
helps these businesses comply with evolving
sustainability standards.
We strive to develop trusting
relationships with our
suppliers by providing clear
and precise requirements,
fostering innovation and
sustainable practices,
promoting fair relationships,
and practicing open and clear
communication.
60%
small- and medium-
sized businesses in our
supplier network
+300
SMEs in our supplier
network supported
in developing a
sustainability strategy
81
Cemex 2024 Integrated Report
Contents
Our Company
Our Strategy
Financial Performance
Environmental Excellence
Stakeholder Engagement
Workforce Experience:
Investing in Our People to
Unlock Their Potential
Customer Centricity: Driving a
Superior Customer Experience
• Supplier Networks: Building
Strong Relationships,
Fostering Mutual Value
Community Development:
Engaging With Communities to
Deliver Transformative Outcomes
Governance
Appendix
S P O T L I G H T : S L A B T E C H N O LO G I E S
Cementing a Stronger Future With Cemex’s
SME Program
When Enrique Rivera Jimenez founded
Monterrey-based Slab Technologies 15 years
ago, his vision was to become a leader in
creating strong, durable foundations and
structures for construction projects.
Like many small business owners, Enrique
faced several challenges that prevented him
from unlocking his company’s full potential.
These included entering a competitive market
without an established brand, securing
capital, and maintaining a steady cash flow.
Despite these obstacles, Enrique was
determined to succeed. He had the skills, the
drive, and a committed team to bring Slab
Technologies to the forefront of the industry;
he just needed some extra support.
When Cemex chose Slab Technologies to
participate in its “Sponsor a Small- and
Medium-Sized Enterprise (SME)” initia-
tive, Enrique jumped at the opportunity.
Launched in 2023, the program is a col-
laboration among Cemex, the Chamber
of the Transformation Industry of Nuevo
León (CAINTRA), and the EGADE Business
School of Tecnológico de Monterrey. Its
goal is to promote the growth and compet-
itiveness of SMEs to enhance the supplier
network and foster local innovation in
collaboration with Cemex.
As a long-time supplier of Cemex, Enrique
was familiar with its strong reputation and
knew that participating in the initiative could
help Slab Technologies evolve to meet ever-
changing marketplace demands.
“After participating in the SME
program, our team better
understands the supply chain
and is now positioned to deliver
more than a transactional service
but an experience to our clients,”
said Enrique. “The SME program
equipped us with the skills to identify
customer needs and determine how
we can best support them
with innovative solutions.”
Participating in the program also helped Slab
Technologies establish more structured and
efficient workflows, enabling it to provide
faster service to its clients. Additionally, it
helped the business gain market share while
sharpening its financial acumen. As a result
of its participation, Slab Technologies experi-
enced a 34% increase in orders with Cemex.
Armed with tools and support, Enrique is
now confidently leading his business into a
future full of growth and potential. With a
stronger foundation for development, the
company is well-positioned to expand its
market presence, innovate new solutions,
and strengthen client relationships.
“Thanks to the support of the Cemex SME
program, we’ve strengthened our business
operations and vision for the future. Slab
Technologies is better equipped to innovate,
grow, and create lasting value for our
clients,” said Enrique.
Sustainable Development Program for Suppliers
Building on our 2023 successful results from the UNGC Sustainable Supplier
Impact Program, in 2024 we created our own Sustainable Development Program
for Suppliers. It covers key environmental, social, governance, and sustainable
finance topics. During 2024, more than 300 SMEs from our Mexico and SCA&C
regions participated in the pilot, tripling participation from the UNGC Sustainable
Supplier Impact Program last year.
We plan to integrate this program into our Supplier Portal and provide ongoing
training to help more SMEs develop sustainability strategies in their businesses.
Our commitment to “leave no one behind” is reshaping our supply chain, moving
Cemex beyond mere transactional supplier relationships to deeper, more
collaborative connections that drive mutual growth.
ä
Learn more about our Sustainable Development Course for suppliers.
+300
participating SMEs
82
Cemex 2024 Integrated Report
Contents
Our Company
Our Strategy
Financial Performance
Environmental Excellence
Stakeholder Engagement
Workforce Experience:
Investing in Our People to
Unlock Their Potential
Customer Centricity: Driving a
Superior Customer Experience
• Supplier Networks: Building
Strong Relationships,
Fostering Mutual Value
Community Development:
Engaging With Communities to
Deliver Transformative Outcomes
Governance
Appendix
Supplier Sustainability Assessment
Drives Proactive Measures
Critical Supplier Sustainability
Our 2030 target of conducting a sustain-
ability assessment on 90% of our critical
suppliers continues to drive proactive
measures. In partnership with a third-party
firm, we engage our critical suppliers in a
sustainability assessment aligned with ISO
26000 guidelines. Covering social, environ-
mental, health and safety, business ethics,
stakeholder relationships, and financial
performance standards, the assessment
fosters a comprehensive review of a
supplier’s sustainability risk profile.
Cemex is presented with a detailed report
of findings, conclusions, and a proposed
action plan to address any identified
gaps. This evaluation is integrated into
each supplier’s scorecard and periodically
updated to prioritize those showcasing
progress in their sustainability practices.
We continue our efforts to include all
noncritical suppliers in a sustainability self-
assessment. Using our self-assessment tool,
we invite interested parties to learn how
they can adopt more robust sustainability
practices. We are currently charting the
next steps to foster sustainability across
our entire supplier network.
Procurement Transformation
Adapts, Evolves, and Transforms
Our Procurement team is reimagining its
role by adopting disruptive technologies
that challenge conventional approaches,
improve operations, and create new sources
of value. A core goal of our transformation
is to enhance our suppliers’ experience by
streamlining processes, improving com-
munication, and fostering a collaborative
ecosystem that benefits all stakeholders.
By leveraging digital technologies, we are
reducing inefficiencies, delays, and manual
errors in supplier onboarding, communica-
tion, and transaction processes. The result?
Long-term relationships with suppliers, an
ecosystem that fosters innovation, and a
reliable, competitive supply base that sets
us apart in the market.
Cemex Suppliers’ Portal: A One-Stop Shop
Cemex’s new Suppliers’ Portal, a key initiative
driving our procurement transformation, was
piloted this year with 100 suppliers in Mexico.
The pilot demonstrated the value of a single
point of contact that gives suppliers visibility
to purchase orders, invoicing, business
opportunities, and issue resolution.
Based on positive feedback from pilot
participants, we are evaluating options for
scaling the portal globally to deliver a more
consistent, enhanced supplier experience.
Once fully implemented, the portal will
simplify how suppliers do business with
us, strengthening our relationships while
ensuring efficiency and transparency.
AI and Automation
Our Procurement Center of Excellence
continues using AI tools globally to
cleanse, harmonize, and classify historical
purchasing data, driving innovation and
continuous improvement. We continue
automating transactional tasks and re-
defining procurement tactics, processes,
people skills, and support systems to
reduce workloads and enable our talent
to focus on high-value activities.
Our Suppliers’ Portal pilot
demonstrated the value of a single
point of contact that allows suppliers
to manage all interactions across
every department within Cemex.
Providing full visibility into a supplier’s
status, the portal aims to increase
transparency, improve efficiency,
and foster seamless collaboration.
Our critical suppliers are those
whose goods or services are
essential to the continuity of our
operations and have a significant
annual spend. Any disruption in
their supply might significantly
impact production, service delivery,
or business performance. These
suppliers typically provide key
material, specialized services, or
unique capabilities that are not
easily replaceable or have limited
alternatives in the market.
Digital Negotiation Portal
The Digital Negotiation Portal is our
online open bidding process and a
gateway for new suppliers to join
Cemex’s supplier network. By pro-
viding a transparent and competitive
platform, we level the playing field
and create opportunities for valuable
partnerships, ensuring fair access
to business opportunities for all
participants.
During 2024, we added more than
5,000 suppliers to our network,
enhancing trust, diversifying our
supplier base, driving innovation, and
strengthening our overall ecosystem.
For existing suppliers, the portal
fosters healthy competition and
encourages continuous improvement,
contributing to a more dynamic and
collaborative network.
Critical Supplier
Sustainability Assessment
(% of critical suppliers
spend under our company’s
procurement scope)
2030
Target
90
2024
82
2023
77
2022
68
2021
72
83
Cemex 2024 Integrated Report
Contents
Our Company
Our Strategy
Financial Performance
Environmental Excellence
Stakeholder Engagement
Workforce Experience:
Investing in Our People to
Unlock Their Potential
Customer Centricity: Driving a
Superior Customer Experience
Supplier Networks: Building
Strong Relationships,
Fostering Mutual Value
• Community Development:
Engaging With Communities to
Deliver Transformative Outcomes
Governance
Appendix
Community Development:
Engaging With Communities
to Deliver Transformative
Outcomes
Our Approach: We actively engage with local communities to
understand the impacts, risks, and opportunities of our activities
on the environment and society and co-create initiatives that are
inclusive and forward-thinking.
SDGs:
Our Social Impact Strategy advances
Cemex’s priority SDGs — 9, 11, 12, and 13.
Through collaboration, we seek to scale
our contributions, promoting a sustainable
future for communities and facilitating a
just transition to a low-carbon economy.
Human Rights:
Cemex is committed to respecting the
human rights of communities and groups,
including vulnerable or marginalized
communities, such as indigenous people,
and children. We have a community
engagement process and an institu-
tional platform for receiving grievances
(ETHOSline), allowing stakeholders to
raise their concerns related to Cemex’s
activities and operations. Grievances
received through our community en-
gagement process are documented and
addressed through Cemex’s Social and
Environmental Incidents Platform.
Social Initiatives Drive
Long-Term Value,
Community Resilience
At Cemex, we know that driving systemic
change and delivering transformative
outcomes is what accelerates a sustainable
world. That’s why we continue to reshape
our social impact program to advance
community resilience and support a just
transition to digital and green economies.
Leveraging our business strengths, we
make significant contributions to society
through targeted community programs
and investment. First, our social respon-
sibility program leverages our strengths
to address the impacts of our operations
and enhance quality of life in our neigh-
boring communities. Second, our social
investments are geared toward building
resilience and long-term sustainable im-
pact in the cities where we operate.
~30M
community
partners
By 2030, our goal is for more than
120 of our sites across geographies
and business lines, including all
cement plants, to be ready to
provide assurance of our social
responsibility practices.
Moving forward, we aim to continue
strengthening our commitment to both
people and planet across all our business
activities. Guided by global standards, we
strive to install and maintain robust processes
seeking transparency, accountability, and
measurable performance across our oper-
ations. Over the coming years, we plan to
extend our frameworks for environmental
stewardship and social equity. This approach
aims to create shared value while addressing
the challenges of today and the opportunities
of tomorrow, driving positive change for our
business and stakeholders.
Community Partners
This year we positively impacted nearly
30 million community partners across our
operations.
Priority Sites Action Plans
Cemex is committed to operating 100% of
its priority sites at the highest standards
while adhering to applicable regulations.
Due to their size, investment road map,
and proximity to urban areas, these priority
sites must become standard-bearers of our
commitment to planet and society.
Across our organization, we are leading
the way with action plans that address
social and environmental impacts and
improve living conditions in our neighboring
communities. Plans are underway to conduct
a gap assessment to better understand
opportunities at our regional sites.
84
Cemex 2024 Integrated Report
Contents
Our Company
Our Strategy
Financial Performance
Environmental Excellence
Stakeholder Engagement
Workforce Experience:
Investing in Our People to
Unlock Their Potential
Customer Centricity: Driving a
Superior Customer Experience
Supplier Networks: Building
Strong Relationships,
Fostering Mutual Value
• Community Development:
Engaging With Communities to
Deliver Transformative Outcomes
Governance
Appendix
1
6
3
4
Cemex Community Engagement Process
Our Community Engagement Process involves dynamic collaboration with the
communities where we operate, and is structured to identify and manage risks and
impacts from our operations in our priority sites.1 Developed in alignment with ISO
26000 standard, our dedicated Community Engagement Committees, composed
of cross-functional teams, supervise and implement this process.
Communicating clearly and transparently
We constantly communicate our progress
and findings, including our alignment
to UN SDGs and other international
standards to top management
and external audiences through
integrated reports, press
releases, among others.
Evaluating our impact
On a quarterly basis, we measure
our progress toward achieving our
sustainability targets and assess
our impact through CEPs while
promoting a positive impact in the
communities we operate in.
Creating solutions together
At a plant level, we co-create Community
Engagements Programs (CEPs) alongside
key stakeholders and local communities
to prioritize and address key topics and
previously identified risks and opportunities.
Identifying and listening to our stakeholders
We identify, classify, evaluate, and prioritize our stakeholders
considering their different expectations or needs and its
proximity to our operations . We hold constant dialogues
with key external stakeholders through local community
groups formed at our priority sites across our
cement, ready-mix, and aggregates businesses,
to understand their needs and challenges.
Additionally, we created committees
composed of internal and external
stakeholders to follow up on key topics.
Identifying and assessing our impact
We proactively and continuously assess
industry issues (e.g., pollution, traffic,
biodiversity loss, among others) to
identify risks and opportunities and
understand their financial, social, and
environmental implications.
Proactively managing risks
We define mitigation measures
to manage the potential impacts
of previously identified risks and
opportunities.
4
3
6
1
5
2
Cemex
Community
Engagement
1
Priority sites are defined by their size, investment road map, and proximity to urban areas.
85
Cemex 2024 Integrated Report
Contents
Our Company
Our Strategy
Financial Performance
Environmental Excellence
Stakeholder Engagement
Workforce Experience:
Investing in Our People to
Unlock Their Potential
Customer Centricity: Driving a
Superior Customer Experience
Supplier Networks: Building
Strong Relationships,
Fostering Mutual Value
• Community Development:
Engaging With Communities to
Deliver Transformative Outcomes
Governance
Appendix
Social Responsibility:
Our Unique Strengths
Facilitate Enhanced
Quality of Life
Our social responsibility programs
actively connect us with communities
through dialogue and co-creation. We
extend opportunities for our neighboring
communities to understand our business
and how it generates value for society,
and we prioritize opening opportunities
for quality employment, health and safety,
and participation in the circular economy.
Community Engagement Programs
We prioritize community engagement by
fostering open communication channels
and promoting active stakeholder partici-
pation. In our regions across the globe, we
hold frequent, formal dialogues with our
neighboring communities through local
community groups, which have proven
key in building mutual trust and effective
action. These efforts are integral to iden-
tifying and assessing material impacts,
risks, and opportunities that originate
from or are connected to our strategy
and business models and inform and
enable adaptation to address community
needs. By understanding community
expectations, we strengthen relationships
between our business operations and our
responsibility to drive long-term value
and resilience for all stakeholders.
Throughout our operations, we aim to
lead the way in sharing our knowledge
and commitment to sustainability.
Circular World. Cemex’s Circular World
educational program creates awareness
with schoolchildren about understanding
and contributing to sustainable devel-
opment through circular economy and
responsible lifestyles.
Mallorca Educational Environmental
Program. Cemex has been collaborating
with the environmental group Grup
d’Amics en Defensa del Medi Ambient
(GADMA) since 2005, aiming to promote
the protection of ecosystems and the
cultural heritage of Mallorca. This educa-
tional environmental program has led to a
wide range of initiatives and educational
campaigns, primarily focused on
young children.
Cemex Morata Summer Camp. This
educational initiative began in 2016 and
uniquely combines language learning
with environmental education, immersing
participants in English while teaching them
about sustainability and local ecosystems.
This dual focus provides students from the
Lucas Arribas school in Morata de Jalón,
Spain, with improved language skills and
fosters ecological awareness from a young
age, encouraging children to understand
their role in environmental stewardship.
Well-Being Community Outreach. As part of
our community outreach, our teams organize
local cycling and running events to promote a
healthy lifestyle. This aligns with our emphasis
on health and safety, which is our #1 priority
and value.
ä
Learn more about our holistic approach
to well-being.
Promoting Employability. We engage with
our communities to promote employability.
Our Regenera business demonstrates this
commitment by partnering with communities
on creative solutions to transform waste.
To date, we have created more than 1,300
new jobs in waste management with a
sustainability focus.
ä
Learn more about our social commitment
to circularity.
86
Cemex 2024 Integrated Report
Contents
Our Company
Our Strategy
Financial Performance
Environmental Excellence
Stakeholder Engagement
Workforce Experience:
Investing in Our People to
Unlock Their Potential
Customer Centricity: Driving a
Superior Customer Experience
Supplier Networks: Building
Strong Relationships,
Fostering Mutual Value
• Community Development:
Engaging With Communities to
Deliver Transformative Outcomes
Governance
Appendix
Cemex Volunteers
in Action
France. Cemex runners and their
families participated in La Grande
Course du Grand Paris and supported
Emmaüs Solidarité’s fight against
poverty and exclusion.
U.K. Cemex cyclists traversed more
than 400 miles over five days to raise
money for Sense, an organization that
creates a more inclusive and accessible
workplace for people living with
complex disabilities.
U.K. In collaboration with Solent
Careers Hub, Cemex U.K. hosted
an event at St Mary’s Stadium in
Southampton to provide career
guidance opportunities for four local
schools and two colleges. Students
enjoyed tours around Cemex’s dredger
ship, wharf, and ready-mix plant.
Mexico. Employees dedicated their
time and skills to initiatives supporting
our Future in Action goals. They
participated in a clean-up campaign in
partnership with Regenera, collecting
waste from public spaces across the
country. On the Mexican peninsula,
the initiative brought together more
than 80 volunteers, who collected
over 500 kg of waste. Some of the
recovered materials were sorted and
co-processed as alternative fuel at the
Mérida Plant.
Global Volunteering
At Cemex, we recognize that our actions today shape a better tomorrow. Embracing
environmental sustainability and social responsibility, we aim for positive change on issues
where we can make meaningful contributions. Our employees contribute their time and
talents to impactful volunteer experiences, guided by our Global Volunteering Guidelines.
+50,000
employee volunteer hours
registered in 2024
~10,000
local volunteers
participated in more than
600 events worldwide
87
Cemex 2024 Integrated Report
Contents
Our Company
Our Strategy
Financial Performance
Environmental Excellence
Stakeholder Engagement
Workforce Experience:
Investing in Our People to
Unlock Their Potential
Customer Centricity: Driving a
Superior Customer Experience
Supplier Networks: Building
Strong Relationships,
Fostering Mutual Value
• Community Development:
Engaging With Communities to
Deliver Transformative Outcomes
Governance
Appendix
How Cemex Activates for
Resilient Cities
2024 was a year of disaster response, testing our
ability to plan, prepare, respond, and participate in
recovery during major climate events. Anticipating the
impact of future climate change, we installed a process
globally that incorporates preparedness actions and
humanitarian relief for neighboring communities.
Working closely with our affected regions, we provided
humanitarian relief and infrastructure recovery
following the UNDRR framework.
Planning and Preparedness. Our regional teams
regularly connect with reconstruction companies,
as well as rapid response teams, to prepare for
hurricane season. We are ready with response materials
for employees and the community and strengthen
community readiness through training programs,
early warning systems, and resource planning. Our
goal is to activate preparedness protocols and secure
humanitarian relief for our employees and neighboring
communities within 48 hours after a disaster.
Our response actions include giving campaigns,
collaboration with nongovernmental organizations
(NGOs), and employee volunteer activities.
Response and Recovery. From the first day a
climate disaster occurs, our local teams inform and
confirm preliminary response actions, including NGO
collaboration and giving campaigns. In the first week
of the disaster, our rapid response teams conduct an
impact assessment and deliver support for employees
and communities. During 2024, our operations were
impacted by five major climate disasters, challenging
our operational continuity and resulting in the loss of
life and livelihoods in the cities where we do business.
Resilience and Disaster Risk Reduction.
Our employees participate and support their
communities by volunteering after a climate disaster,
such as cleaning the affected homes and providing
facilities for housing improvement where necessary.
Global Action Plans
Seeking a comprehensive approach
to stakeholder engagement and
impact management, our action plans
encompass a range of tailored measures
to address material issues. These include
preventive, mitigation, and remediation
actions. For actual material impacts, we
have established clear mechanisms to
enable remedy, including grievance and
collaborative resolution initiatives. Beyond
mitigation and remediation, we actively
pursue initiatives designed to deliver positive
outcomes, such as skilling programs and
investments in local infrastructure.
Resilient Communities. Building resilient
communities is core to our social impact
approach. Guided by the United Nations
Office for Disaster Risk Reduction (UNDRR)
framework, our resilience work is designed
to empower communities to prepare for,
respond to, and recover from challenges
while promoting long-term sustainability.
We leverage the UNDRR’s 10 Essentials for
Making Cities Resilient, addressing critical
steps for building and maintaining resilient
cities, outlining strategic focus areas, and
identifying key actions.
SEVERE FLOODS, SPAIN
+10,000
community members
benefited
+US$38,000
raised through employee-giving
campaign to support Red Cross
HURRICANE OTIS, MEXICO
+160
community members and
employees benefited
ä Learn more about how Cemex
builds resilient communities.
Planning and Preparedness
~8,000
people trained
in emergency
preparedness
3
emergency
infrastructures
built
HURRICANE MILTON, U.S.
28,000
community members
benefited
2,500 Tons
sand distributed to
Florida counties for housing
barrier preparation
Response and Recovery
4
employee-driven
giving campaigns:
U.S., Mexico, Spain
88
Cemex 2024 Integrated Report
Contents
Our Company
Our Strategy
Financial Performance
Environmental Excellence
Stakeholder Engagement
Workforce Experience:
Investing in Our People to
Unlock Their Potential
Customer Centricity: Driving a
Superior Customer Experience
Supplier Networks: Building
Strong Relationships,
Fostering Mutual Value
• Community Development:
Engaging With Communities to
Deliver Transformative Outcomes
Governance
Appendix
Social Investments Create Positive Impacts With Lasting Value
At Cemex, we recognize the power of going beyond traditional
social responsibility. We align our social investments with our core
expertise and business strengths to deliver positive impacts that
create lasting value. This approach enables us to focus on long-term,
transformative outcomes that not only support communities but
also amplify our ability to innovate and lead in our industry. Through
partnerships, shared knowledge, and targeted investments, we are
embedding social impact into our strategic vision, creating a future
where business success and societal progress are inextricably linked.
Employability: Digital Accelerator Program, Mexico
Cemex was among 12 founding companies and academic institu-
tions of the Monterrey Digital Hub. In 2024, we launched the Digital
Accelerator Program in partnership with the Hub and Data Rebels.
Our objective is to enhance participants’ annual income by securing
better job opportunities through the competitive skills they acquire
during the program.
The 16-week foundational and specialized training in Python transla-
tion is designed specifically for a cohort of 25 young individuals. In our
first year, 84% of participants graduated, 58% obtained employment
that grants a living wage within four months after graduation, and
the program achieved 45% gender parity. By transitioning to digital
jobs with higher demand and competitive salaries, we estimate that
young workers could increase their income by up to 30%.
Circular Economy: VeryNile, Egypt
VeryNile is a local initiative in Qursaya, Egypt, focused on preserving
the Nile River through waste collection while also providing local
working opportunities. Understanding the initiative’s importance,
Cemex collaborated with VeryNile to expand its operations to the
cities of Assiut and Sohag, increased Qursaya’s operational capacity
to handle the 575 tons of waste collected, and created 360 jobs,
providing stable sources of income for the Qursaya population. As
of this year, Cemex co-processed 460 tons of nonrecyclable waste
collected by VeryNile as alternative fuel in our Assiut plant.
Cemex volunteers also help educate surrounding communities on the
importance of waste management to preserve the Nile River. With all
efforts combined, VeryNile provides work opportunities for the people
of Qursaya Island, health and safety training, and direct employment
in the circular economy to more than 10% of local anglers, both men
and women, complementing their income by up to 30%.
Road Safety. Working with educational
institutions, traffic authorities, community
groups, and civil society organizations,
we implement awareness campaigns on
road safety, regulation compliance, and
accident prevention. Cemex employees
teach defensive driving and the importance
of road safety to members of these
communities while explaining the safety
features of our vehicles.
• Spain. Since 2017, Cemex has led road
safety education in Majorca through
the PLEASE platform, which focuses on
vulnerable cyclists. The program promotes
coexistence, respect, and road safety
awareness by actively involving road
users, authorities, and associations in
dialogues and debates.
• Mexico. Mission Zero Strategy involves a
public platform offering comprehensive
road safety training, empowering the
community with essential skills. As of
December 2024, 79,500 individuals have
benefited.
ä Learn more about our health
and safety efforts.
+18,000
people trained in road safety
+4,000
individuals graduated
from employability
programs in 2024
12
road safety physical
interventions implemented
89
Cemex 2024 Integrated Report
Contents
Our Company
Our Strategy
Financial Performance
Environmental Excellence
Stakeholder Engagement
Workforce Experience:
Investing in Our People to
Unlock Their Potential
Customer Centricity: Driving a
Superior Customer Experience
Supplier Networks: Building
Strong Relationships,
Fostering Mutual Value
• Community Development:
Engaging With Communities to
Deliver Transformative Outcomes
Governance
Appendix
S P O T L I G H T : V E RY N I L E
Upcycling Project Provides Purpose for Workers,
Transforms Community
Five years ago, Om Kamal’s life dramatically changed. After taking
a job at an upcycling workshop as part of the VeryNile project, an
initiative supported by Cemex to clean and protect the Nile River,
Om Kamal gained a stable income and a fresh sense of purpose.
No longer limited to household responsibilities, Om Kamal was
building a better future while positively impacting the environment
by transforming waste from the river, such as plastic, into valuable
products, like pouches and other useful household items.
“We all have a newfound appreciation for caring for the
environment. Before, people threw trash in the river without a
second thought. Now, the river is a bit cleaner. Being involved
in the VeryNile project has also expanded my social circles and
network of friends,” she said.
When Cemex began its collaboration with VeryNile, an initiative
backed by the Ministry of Environment in Egypt that develops
eco-friendly solutions to remove inorganic waste from the Nile
River, Om Kamal was one of four individuals working in the
upcycling workshop. Today, that number has increased to 35
workers, reflecting the project’s growth and development.
Through the initiative, she has witnessed firsthand how the
VeryNile project has transformed life on and off the island of
Qursaya, which she calls home. Cemex volunteers have embraced
these efforts to promote environmental awareness and protect
the Nile River.
The VeryNile waste removal efforts have also had a positive
economic impact on the island, creating 360 new jobs. For
example, anglers now have dual sources of income: Fishing and
collecting waste.
“The project has opened many doors and created
opportunities for everyone on the island. People who
once had nothing now have the means to build homes
for their families.”
Looking ahead, she hopes that VeryNile’s long-term impact will
lead to even broader community engagement, reduced pollution,
and a cleaner Nile for future generations.
ä Learn more about VeryNile and how it’s positively impacting the environment
and the well-being of people living in Egypt.
Cemex Receives
Preeminent Recognition
for VeryNile Initiative
Fortune Change the World List
Fourth Recognition, 24th out of
52 Companies Ranked
Boston College Center
for Corporate Citizenship
Innovator Awards for Eco-Innovator
Ragan CSR & Diversity Awards
Honorable Mention
Corporate-Community or
Nonprofit Partnership
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Cemex 2024 Integrated Report
Contents
Our Company
Our Strategy
Financial Performance
Environmental Excellence
Stakeholder Engagement
Workforce Experience:
Investing in Our People to
Unlock Their Potential
Customer Centricity: Driving a
Superior Customer Experience
Supplier Networks: Building
Strong Relationships,
Fostering Mutual Value
• Community Development:
Engaging With Communities to
Deliver Transformative Outcomes
Governance
Appendix
Built Environment
Improving the built environment is a cornerstone of our social investments and creates
healthier and safer environments for people in our communities. As we continue our
journey to net zero, our progress in developing building materials with sustainable
attributes positions us well to build more resilient cities for our communities.
Patrimonio Hoy, Mexico
For 26 years, Patrimonio Hoy (PH) has been our flagship social program, providing
access to microfinancing, technical advice, maintenance solutions, and high-quality
building materials to low-income families in Mexico. The program offers different
payment schemes that adapt to the financial and construction needs of benefited
families, enabling them to improve their homes and livelihoods.
This year, we launched APP Patrimonio Hoy, an app and chatbot that gives PH
partners visibility to all their project’s information digitally, streamlining and
personalizing their experience. More than 50% of PH partners have downloaded
the app.
We also initiated a voluntary fundraising campaign among our Cemex Mexico
employees, matching each Mexican peso donated, to provide additional resources
for our PH partners.
S P O T L I G H T : PA T R I M O N I O H O Y
Social Program Enables Primary Caregiver
to Build Home, Peace of Mind
For nearly 20 years, Maggie, a hardworking
primary caregiver from Tuxtla Gutiérrez,
Chiapas, rented a small wooden house to
keep a roof over her family’s heads. But she
longed for a more resilient, permanent home
for herself and her six children. In 2014, after
learning about Cemex’s Patrimonio Hoy
social program, her dream started to take
shape. The program, which improves homes
in communities across Mexico, changes the
trajectory of millions of people like Maggie
who live in inadequate housing.
According to Mexican government data,
33 million people reside in homes built
below minimum standards for resilience,
often lacking access to clean water or
sanitation. Through Patrimonio Hoy,
Maggie received the technical assistance
needed to transition from renting to
owning her own resilient home.
“As a renter, you don’t have much stability,”
she said. “I finally felt financially free owning
my own home.”
The program also gave her access to an
architect who made her vision a reality.
“I had a clear idea of the home I
wanted to create for my family, and
the Patrimonio Hoy program made
it possible.”
Built with durable materials to withstand
severe weather, including strong winds,
the home offered refuge to Maggie and
her family. It also drastically improved her
family’s health by reducing exposure to
dust and other irritants. More importantly,
Maggie can now leave a legacy of security
and comfort for her children and future
generations.
Reflecting on her journey, she recalls
how visible the Patrimonio Hoy team was
throughout the process and how reassuring
it was to have face-to-face contact
with people interested in her future. She
encourages anyone contemplating the
Patrimonio Hoy program to join.
“They walked beside me every step of the
way, so I felt confident in making decisions
regarding homeownership. It’s about
so much more than building homes—it’s
about building confidence, stability, and
peace of mind.”
+3.23M
people positively impacted
679,000
families benefited
+5.3M m2
built
77%
of beneficiaries are women
2024
Finalist
Reuters Social Impact Award
ä Learn more about Patrimonio Hoy, Cemex’s flagship social program.
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Cemex 2024 Integrated Report
Contents
Our Company
Our Strategy
Financial Performance
Environmental Excellence
Stakeholder Engagement
Workforce Experience:
Investing in Our People to
Unlock Their Potential
Customer Centricity: Driving a
Superior Customer Experience
Supplier Networks: Building
Strong Relationships,
Fostering Mutual Value
• Community Development:
Engaging With Communities to
Deliver Transformative Outcomes
Governance
Appendix
Clean Cookstoves, Mexico
In Mexico, more than 28 million peo-
ple cook using traditional wood-burning
stoves, which produce high levels of emis-
sions inside their homes. Cemex’s Clean
Cookstoves program replaces inefficient,
open, wood-burning stoves with cookstoves
that efficiently concentrate heat in a pro-
tected concrete compartment and reduce
smoke emissions by up to 99%. This reduces
cooking and firewood collection time and
minimizes the risk of burns and diseases
associated with smoke exposure. To date,
more than 97,000 people have been pro-
vided with Clean Cookstoves.
Habitat for Humanity 100,000 Floors,
Colombia
This year, Cemex joined the “100,000 Floors
to Play On” initiative alongside Habitat for
Humanity and the Inter-American Cement
Federation. This initiative aims to replace
100,000 dirt floors with concrete in homes
across Latin America and the Caribbean by
2028, providing improvements in hygiene,
indoor air quality, and energy efficiency.
Cemex is supporting the project in Colombia
through its Dignified Floor program, which
has provided families with materials and
technical support to improve home flooring
for the past 25 years.
Sustainable Construction, U.S.
Cemex has partnered with SEEED (Socially
Equal Energy Efficient Development), a
community-based nonprofit organization
in Knoxville, TN, to address poverty for
young adults through career readiness,
environmental education, and community
engagement. The program uses a
comprehensive, multipronged approach
that leverages and expands upon existing
workforce development programs,
sustainable housing, and specialized training
programs. Its impact is far-reaching:
• Career Readiness equips young adults with
essential life, job, and placement skills.
• Solar-Powered Homes builds solar-
powered, sustainably designed homes
for low-income families at below-
market rates, helping them achieve
approximately US$75,000 in equity upon
ownership, which builds generational
wealth.
• Green Construction Boot Camp offers
training in conventional and sustainable
construction methods, so students gain
professional skills while contributing to
the financial future of families in their
communities.
Resilience
Cemex strives to build sustainable, resilient
communities through social investments that
complement our climate action program.
•
Botanical Garden, Egypt
Despite the warm climate, southern
Egypt’s first botanical garden has
become a popular spot for the
community to gather, explore, and enjoy
the beauty of diverse plants. Using the
expertise of Assiut University professors,
Cemex brought this garden to life as
part of the football stadium, which is
adjacent to our Assiut plant. Through
the university’s insights into landscape
design and plant selection, the garden
has flourished and now attracts about
75,000 visitors annually.
•
Solar Panels, Croatia
This year, the Environmental Protection
and Energy Efficiency Fund awarded
Cemex Croatia contracts for three
projects in energy production from
renewable sources, co-financed by
the EU’s Modernisation Fund. Cemex
is building new solar power plants at
the Sveti Juraj cement plant in Kaštel
Sućurac, the Sveti Kajo cement plant
in Solin, and the Podsused production
facility in Zagreb. The first, on the
rooftop of a local football club, supports
local schools and sports clubs in adopting
renewable energy.
ä Learn how our Sustainable
Development Program for
Suppliers helps us address
sustainability and fortifies
our supply chain.
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Cemex 2024 Integrated Report
Governance
92
Cemex 2024 Integrated Report
Our Purpose
We embrace high ethical
standards and best practices in
our corporate governance model,
upholding our commitment to
integrity, accountability, and
responsible decision-making.
Corporate Governance
Our Board of Directors
Executive Committee
Ethics and Compliance
Risk and Opportunity Management
Respect for Human Rights
2024 Highlights
86%
ethics and compliance questions
and concerns received
through ETHOSline
100%
operations audited in
high-risk countries
+26,000
employee training hours
completed to reinforce our
Code of Ethics
During 2024, Cemex continued implementing
best corporate governance practices:
Policies, Controls, and Procedures
Values
Code of Ethics and Business Conduct
Bylaws
Executive Committee
Enhanced its policy on
insider trading and transactions
with Cemex securities
Initiated a new
shareholder return
program
Began implementing
long-term incentive plan
for eligible employees
Enhanced its human rights
program along with
its human rights policy
Enhanced its global
data retention policy
Corporate Governance Model
Stakeholders
Shareholders
Sustainability,
Climate Action,
Social Impact, and
Diversity Committee
Corporate Practices
and Finance
Committee
Audit
Committee
Board of Directors
Corporate Governance
Our corporate governance model sets the
framework to act with integrity.
We are guided by our values, progressive business practices, and sustainability commitments.
Sustainability is embedded in our business, including our corporate governance practices.
As a result, we maintain high ethical standards and follow best practices in our corporate
governance model which is designed to go beyond basic compliance with laws and regulations.
Our aim is to achieve a superior performance that fosters strong, sustained economic growth
while seeking to uphold a high level of integrity.
At Cemex, we have different channels through which stakeholders’ interests are considered,
addressed, and reflected in our governance system. This system is designed to appropriately
and efficiently manage and operate our company with the intention of fulfilling our corporate
strategy and living up to our values and aspirations.
Contents
Our Company
Our Strategy
Financial Performance
Environmental Excellence
Stakeholder Engagement
Governance
• Corporate Governance
Our Board of Directors
Executive Committee
Ethics and Compliance
Risk and Opportunity Management
Respect for Human Rights
Appendix
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Cemex 2024 Integrated Report
Contents
Our Company
Our Strategy
Financial Performance
Environmental Excellence
Stakeholder Engagement
Governance
Corporate Governance
• Our Board of Directors
Executive Committee
Ethics and Compliance
Risk and Opportunity Management
Respect for Human Rights
Appendix
Our Board of Directors
Within our governance system, our Board
of Directors is primarily responsible for
approving our corporate strategy and
supervising the company’s overall operations.
In doing so, our Board of Directors takes into
account laws and regulations, best practices
and guidelines, stakeholder interests, society’s
values and ideals, global and local trends,
risks and opportunities, and circumstances
that the company must address. Additionally,
our Board of Directors guides the company
through the development, implementation,
and oversight of compliance with company
mandates, guidelines, policies, controls, and
procedures. Specific functions also include
reporting to shareholders on the general
state of the company, supervising the
performance of our CEO, monitoring the
main risks the company faces, and approving
information and communication policies.
To carry out these responsibilities
effectively, our Board of Directors adheres
to best practices and maintains an optimal
structure. Corporate governance practices
related to our Board of Directors include:
• Distinct roles for the Chairman of
the Board of Directors and CEO
• Establishment of a Sustainability,
Climate Action, Social Impact, and
Diversity Board Committee
• Individual elections for our Board and
Board Committee members
• Enhancement of diversity on our
Board of Directors by increasing the
representation of independent, female,
and international directors
• Formalization of self and cross evaluations
among Board of Directors members
Cemex’s Board of Directors is compensated
in a fixed manner based on participation
in board meetings. The compensation
of our Board of Directors is approved
each year at Cemex’s Ordinary General
Shareholders’ Meeting. Before the annual
shareholders meeting held on March
22, 2024, shareholders had approved
compensation of US$24,9161 per board
meeting attended and US$6,0011 per
committee meeting attended. At the annual
shareholders meeting held on March 22,
2024, these amounts were increased to
US$26,0921 per board meeting attended and
US$6,2891 per committee meeting attended,
respectively. The actual amount paid for
board and committee meetings attended
in 2024 was approximately US$1.9 million1.
In the upcoming years, we expect
to implement additional initiatives
such as formalizing director selection
criteria (including for independent
directors), establishing tenure limits, and
implementing overboarding restrictions,
among other improvements.
In 2024, our Board of Directors was
chaired by Rogelio Zambrano and was
composed of 13 highly qualified directors
appointed by our shareholders, 10 (77%) of
whom qualified as independent directors
according to criteria specified in Mexican
law. In addition, two members of our
Board of Directors’ Audit Committee met
the requirements of a financial expert as
defined by the Sarbanes-Oxley Act of
2002 (SOX). In addition, 46% of our board
members brought significant expertise in
the construction and building materials
industry, with strong representation of this
expertise across our board committees.
1
Based on an exchange rate of $20.83 Mexican pesos to $1.00 US Dollar.
Non-Independent
Independent
77%
23%
Corporate Governance in Numbers 5
As of December 31, 2024
Board Configuration
Board of
Directors
Executive
Committee
Members
13
10
Average Years
15
27
tenure
seniority
Nationalities
4
3
Gender Diversity
2
1
women
woman
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Cemex 2024 Integrated Report
Contents
Our Company
Our Strategy
Financial Performance
Environmental Excellence
Stakeholder Engagement
Governance
Corporate Governance
• Our Board of Directors
Executive Committee
Ethics and Compliance
Risk and Opportunity Management
Respect for Human Rights
Appendix
Also, in 2024, our Board of Directors
met five times to report on a wide range
of relevant issues, including progress on
our corporate strategy, the state of our
governance system, compensation and
nomination-related matters, sustainability-
related concerns, shareholder return
initiatives and financial results, reporting,
and strategy, with average board meeting
attendance of approximately 98%.
Certain matters dealt with during 2024
by our Board of Directors include, but are
not limited to:
• Review of activities and recommendations
of the Audit Committee of Cemex’s Board
of Directors, the Corporate Practices and
Finance Committee of Cemex’s Board of
Directors, and the Sustainability, Climate
Action, Social Impact and Diversity
Committee of Cemex’s Board of Directors;
• Review and authorization of the financial
statements for the fourth quarter of
2023, for the year ended on December
31, 2023, and for the first, second, and
third quarters of 2024, as well as the
results and analysis of the most relevant
performance indicators;
• Review of the budget and financial plan
for 2024;
• Review of the economic outlook;
• Review of the 2023 results for Cemex’s
five strategic priorities;
• Review and authorization of several
financial transactions, donations,
acquisitions of securities representing the
capital stock of Cemex in compliance with
the measures regarding equity thresholds
in Cemex set forth in the bylaws, and
transactions with related parties and
involving conflicts of interest;
• Review and approval of several policies
and programs, including those on human
rights issues, transactions with derivative
financial instruments, and changes to the
Insider Trading and Transactions with
Cemex Securities Policy;
• Review and approval of the agenda
for the Ordinary General Shareholders
Meeting held on March 22, 2024, including
the reports and other information
presented in said meeting;
• Review of innovation, research and
development, digitalization, talent
management, and energy strategies,
among others;
• Appointment of the external auditor and
its budget for the 2024-2025 period;
• Review of the relevant aspects of the
operations and valuation of Cemex’s
shares;
• Review of succession planning, resulting
in the recent announcement of a new
Chief Executive Officer and other senior
level organizational changes;
• Review of Cemex’s sustainability model
and the latest results of our Future in
Action program;
• Follow-up on comments from the
Corporate Finance Division of the U.S.
Securities and Exchange Commission
(SEC) regarding the 2022 annual report
filed on Form 20-F;
• Review and analysis of accounting
provisions and impact on cash flow
resulting from tax proceedings in Spain;
• Review of the most relevant aspects of
the operations in several geographies;
and
• Review of the risk agenda of Cemex
and its subsidiaries.
Our company has embarked on a corporate governance evolution, continuously striving
for our Board of Directors to abide by best practices and maintain an optimal structure. As
part of these efforts, since 2014 and throughout the years, we have made and continue to
make important corporate governance enhancements at a board level. We have separated
the roles of Chairman and CEO and created the Board of Directors’ Sustainability, Climate
Action, Social Impact, and Diversity Committee (formerly named the Sustainability
Committee), whose responsibilities have been broadened to include sustainability, social
impact, and diversity and inclusion matters. We also changed the election for our Board and
Board Committee members from a group slate to an individual basis and increased diversity
on the Board by increasing the representation of independent, female, and international
directors. Additionally, out of the 10 members of the Board of Directors in place when we
began our corporate governance evolution in 2014, only 4 remain on the Board of Directors
as of year-end 2024, having appointed 9 new Directors since then.
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Cemex 2024 Integrated Report
Contents
Our Company
Our Strategy
Financial Performance
Environmental Excellence
Stakeholder Engagement
Governance
Corporate Governance
• Our Board of Directors
Executive Committee
Ethics and Compliance
Risk and Opportunity Management
Respect for Human Rights
Appendix
In addition, in 2023, the Board of Directors’
evaluation process was enhanced,
formalized, and transitioned to an annual
exercise, which was also executed in 2024.
This comprehensive review includes an
evaluation of the Board as a whole, as
well as a self-assessment by each Board
member, to determine whether the Board
and its Committees operate effectively
during the calendar year. The evaluation
covers various aspects, such as the
composition and structure of the Board,
including the balance between independent
and non-independent members, and the
skillset and experience of each member.
It also assesses the Board’s overall
effectiveness and operations, including
the adequacy of information provided for
discussions, the clarity and presentation
of meeting agendas, the frequency and
timing of meetings, and whether sufficient
preparation time is given. Additionally, the
evaluation reviews the performance and
operations of the Board and its Committees,
including the Audit Committee, Corporate
Practices and Finance Committee, and
Sustainability, Climate Action, Social Impact,
and Diversity Committee. Each Board
member also conducts a self-assessment
of their individual performance, addressing
areas such as confidentiality obligations,
meeting preparation, participation, time
commitment, and other responsibilities.
Our commitment to further improve and
strengthen our corporate governance
practices is also reflected in our robust
policies and processes for managing
conflicts of interest and related person
transactions, aimed at upholding
transparency and accountability throughout
the company. Our policy on Conflicts of
Interest reaffirms our position that all
members of the Cemex Group (including
our CEO, Executive Committee, and Board
of Directors) shall always act in accordance
with Cemex’s best interests and generally
prohibits the Cemex Group from entering
into transactions and/or negotiations where
a conflict of interest exists. Employees are
required to self-report any actual, potential,
or apparent conflict of interest in our global
reporting process and digital platform. All
reports are evaluated and authorized, if
applicable, by a multidisciplinary team as
well as the employee’s supervisor. In some
cases, this evaluation and, if applicable,
authorization is done at the Cemex Board
of Directors level. In addition to the conflict
of interest process, under our policy and
procedures with respect to related person
transactions, we also carry out a related
party transaction review which seeks
to comply with our bylaws, applicable
regulations, and market practices to report
and review any transactions with related
persons and is applicable to all Cemex
operations worldwide.
Our practices aim to promote gender
representation within our Board of Directors
and executive roles. We have a Global
Workplace Diversity, Equity, and Inclusion
policy that seeks to enrich the workplace
by upholding principles of diversity, equity,
and inclusion. This policy, which applies
to the Board of Directors, also specifies
that these principles must be considered
when proposing candidates for election
to the Board. Additionally, as part of our
succession planning for management
positions, every executive is required to
include a woman in their succession plan.
Furthermore, as a Mexican-listed company,
we adhere to regulatory requirements
regarding gender quotas, as applicable.
We have a Global Workplace
Diversity, Equity, and Inclusion
policy that seeks to enrich
the workplace by upholding
principles of diversity, equity,
and inclusion. This policy,
which applies to the Board
of Directors, also specifies
that these principles must be
considered when proposing
candidates for election to
the Board.
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Cemex 2024 Integrated Report
Contents
Our Company
Our Strategy
Financial Performance
Environmental Excellence
Stakeholder Engagement
Governance
Corporate Governance
• Our Board of Directors
Executive Committee
Ethics and Compliance
Risk and Opportunity Management
Respect for Human Rights
Appendix
Our Board Members
Rogelio Zambrano Lozano (68)
Role within Cemex’s Board of Directors:
Executive Chairman.
Tenure on Cemex’s Board of Directors:
Member since 1987 and Executive
Chairman since 2014.
Other Current Roles: Mr. Zambrano
Lozano is an alternate member of the
board of directors of Banco Santander
México, S.A., Institución de Banca
Múltiple, Grupo Financiero Santander
México, a member of the Regional
Council of Banco de México (Mexico’s
central bank), a member of the Consejo
Mexicano de Negocios, and a member
of the board of trustees of the Instituto
Tecnológico y de Estudios Superiores de
Monterrey, as well as a visiting professor
at this same university.
Experience: Mr. Zambrano Lozano was
President of the Finance Committee of
Cemex’s Board of Directors from 2009
until March 2015.
Mr. Zambrano Lozano has been involved
in the construction and building materials
industries for over 40 years, as well as
in various entrepreneurship matters
in Mexico and the United States, after
founding and serving as co-chief
executive officer of Carza, S.A.P.I. de
C.V., a leading real estate development
company. With his vast experience and
proven leadership, since his appointment
as Chairman of Cemex’s Board of
Directors, Mr. Zambrano Lozano has
been responsible for guiding Cemex’s
global business strategy, particularly
focusing on strengthening best corporate
governance practices, based on a
commitment to create lasting value for
all Cemex’s stakeholders. Mr. Zambrano
Lozano supports various non-profit
organizations related to education,
health and entrepreneurship.
Education: Mr. Zambrano Lozano holds
a B.S. degree in Industrial and Systems
Engineering from the Instituto Tecnológico y
de Estudios Superiores de Monterrey, and an
MBA from the Wharton Business School of
the University of Pennsylvania.
Fernando A. González Olivieri (70)
Tenure on Cemex’s Board of Directors:
Since 2015.
Board Membership at Listed Entities:
Mr. González Olivieri is a member of
the board of directors of GCC, S.A.B.
de C.V. (formerly Grupo Cementos
de Chihuahua, S.A.B. de C.V.) and
Axtel, S.A.B. de C.V., both Mexican
corporations listed in Mexico.
Experience at Cemex and Other Relevant
Experience: Mr. González Olivieri joined
Cemex in 1989 and held various positions in
the Strategic Planning, Business Development
and Human Resources departments
through 1998. From 1998 through 2009,
Mr. González Olivieri led various regions of
Cemex, including South America, Central
America, and the Caribbean (SCA&C),
Europe, Asia and Oceania. He was appointed
as Cemex’s Executive Vice President of
Planning and Development in May 2009, and
he was appointed Cemex’s Chief Financial
Officer in 2011. Mr. González Olivieri held
these positions until he was named Chief
Executive Officer in 2014. In 2023, he was
named President of the Global Cement and
Concrete Association.
With his comprehensive knowledge of
Cemex’s organization and the markets where
it operates around the world, Mr. González
Olivieri brings to Cemex’s Board of Directors
and Senior Management a unique global
perspective and innovative leadership,
that directly contributes to formulating
and implementing a results-oriented
business strategy. With over 30 years of
direct involvement in top management
positions, and a detailed understanding
of Cemex’s four main businesses (cement
production, ready-mix concrete, aggregates
and Urbanization Solutions), he has given
particular attention to constantly improving
Cemex’s Health and Safety policies, and
to implementing a sustainability strategy
aimed at achieving Net Zero Carbon growth
and development. Mr. González Olivieri
is a member of the board of trustees of
Tecmilenio University, which forms part
of the Instituto Tecnológico y de Estudios
Superiores de Monterrey.
Education: Mr. Gonzalez holds a B.A. degree
in Business Administration, and an MBA
from the Instituto Tecnológico y de Estudios
Superiores de Monterrey.
Armando J. García Segovia (72)
Tenure on Cemex’s Board of Directors:
Since 1983.
Tenure on Cemex’s Sustainability,
Climate Action, Social Impact, and
Diversity Committee: Since 2014, and
President since 2014.
Board Membership at Listed Entities:
Mr. García Segovia is a member of
the board of directors of Promotora
de Hoteles Norte 19, S.A.B. de C.V.
(formerly Hoteles City Express, S.A.B.
de C.V.) and an independent member of
the board of directors of GCC, S.A.B.
de C.V. (formerly Grupo Cementos de
Chihuahua, S.A.B. de C.V.), both of which
are listed corporations in Mexico.
Other Current Roles: Mr. García Segovia
is a member of the board of directors of
Innovación y Conveniencia, S.A. de C.V.,
PYOSA Industrias, S.A.P.I. de C.V. (both
Mexican non-public corporations) and
Universidad de Monterrey, A.C. He is a
member of the Consejo de Participación
Ciudadana de Parques y Vida Silvestre
de Nuevo León, a non-profit entity with a
sustainability agenda. Mr. García Segovia
is the founder and chairman of the board
of directors of Comenzar de Nuevo, A.C.,
a non-profit organization focused on the
treatment, education, prevention, and
research of eating behavior disorders
and related diseases. Mr. García Segovia
also serves as honorary consul in
Monterrey of the Kingdom of Denmark.
Experience: Mr. García Segovia worked
at Cydsa, S.A.B. de C.V. (a Mexican listed
corporation) and Conek, S.A. de C.V. (a
Mexican non-public corporation). From
1985 to 2010, he held several positions at
Cemex, including Director of Operations
and Strategic Planning, Corporate
Services, and Business Development,
as well as Executive Vice President of
Development, Technology, Energy and
Sustainability. He was also vice president
of the Mexican Employers’ Association
(COPARMEX), chairman of the Private
Sector Commission for Sustainable
Development Studies (CESPEDES),
member of the board of directors of the
World Environmental Center (a non-
profit organization), and vice president
of the Patronato del Museo de la Fauna y
Ciencias Naturales, A.B.P.
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Cemex 2024 Integrated Report
Contents
Our Company
Our Strategy
Financial Performance
Environmental Excellence
Stakeholder Engagement
Governance
Corporate Governance
• Our Board of Directors
Executive Committee
Ethics and Compliance
Risk and Opportunity Management
Respect for Human Rights
Appendix
Mr. García Segovia brings to Cemex’s
Board of Directors a broad knowledge of
the technical and production aspects of the
global building-materials industry, along
with a deep commitment to sustainability,
climate action and nature conservancy,
that provides valuable leadership to
Cemex’s sustainability and climate action
strategy, a core component to Cemex’s
long-term value creation objective.
Education: Mr. García Segovia holds a
B.S. degree in Mechanical Engineering and
Administration from the Instituto Tecnológico
y de Estudios Superiores de Monterrey, and
an MBA from the University of Texas.
Rodolfo García Muriel (79)
Tenure on Cemex’s Board of Directors:
Since 1985.
Tenure on Cemex’s Corporate Practices
and Finance Committee: Since 2015.
Other Current Roles: Mr. García
Muriel is the chief executive officer of
Compañía Industrial de Parras, S.A. de
C.V., chairman of the board of directors
of Grupo Romacarel, S.A.P.I de C.V.,
(both are non-public corporations),
and a member of the regional board
of directors of Grupo Financiero
Citibanamex (a non-public corporation).
Experience: Mr. García Muriel was
a member of the Audit Committee
of Cemex’s Board of Directors from
2016 until March 2023 and the Finance
Committee of Cemex’s Board of
Directors from 2009 until March 2015.
Mr. García Muriel is a Mexican business
leader with decades of experience and an
outstanding record as founder, director,
and president of major companies in the
manufacturing, construction, transport,
and communications industries. His vast
business experience brings to Cemex’s
Board of Directors useful knowledge
in critical areas such as logistics and
manufacturing as well as macroeconomic
and market trends.
Education: Mr. García Muriel holds a B.S.
degree in Electric Mechanical Engineering
from the Universidad Iberoamericana and
completed specialized programs in Business
Administration at both Harvard University,
and the Anderson School of the University of
California in Los Angeles.
Francisco Javier Fernández Carbajal (69)
Tenure on Cemex’s Board of Directors:
Since 2012.
Tenure on Cemex’s Audit Committee:
Since 2015.
Tenure on Cemex’s Corporate Practices
and Finance Committee: Member since
2015 and President since 2019.
Board Membership at Listed Entities:
Mr. Fernández Carbajal is a member of
the board of directors of Alfa, S.A.B. de
C.V. (a listed corporation in Mexico) and
VISA, Inc. (a New York Stock Exchange
(“NYSE”) listed corporation), as well
as an alternate member of the board
of directors of Fomento Económico
Mexicano, S.A.B. de C.V. (a corporation
listed in Mexico and on the NYSE).
Other Current Roles: Mr. Fernández
Carbajal is the chief executive officer of
Servicios Administrativos Contry, S.A. de
C.V. (a Mexican non-public corporation).
Experience: Previously, Mr. Fernández
Carbajal held positions Grupo Financiero
BBVA México S.A. de C.V., including
deputy president of strategic planning,
president of systems and operations,
chief financial officer, and chief
executive officer.
With a business career of more than
40 years and in-depth knowledge
of specialized areas like payment
systems and complex financial services
worldwide, Mr. Fernández Carbajal
brings to Cemex’s Board of Directors
relevant insights in strategic planning and
risk management, as well as in essential
business functions, including financial
reporting and competitive compensation
mechanisms, which are fundamental to
attracting and retaining talent.
Education: Mr. Fernández Carbajal holds
a B.S. degree in Electric Mechanical
Engineering from the Instituto Tecnológico y
de Estudios Superiores de Monterrey, and an
MBA from the Harvard Business School.
David Martínez Guzmán (67)
Tenure on Cemex’s Board of Directors:
Since 2015.
Board Membership at Listed Entities: Mr.
Martínez Guzmán serves on the board of
directors of Alfa, S.A.B. de C.V. and Vitro,
S.A.B. de C.V., both of which are listed
corporations in Mexico, and Sabadell
Bank, a listed corporation in Spain.
Other Current Roles: Mr. Martínez
Guzmán is the founder and principal
of Fintech Advisory Inc., as well as
managing director of its London
subsidiary, Fintech Advisory, Ltd., and
member of the board of directors of ICA
Tenedora, S.A. de C.V.
Experience: Mr. Martínez Guzmán is
the principal of Fintech Advisory Inc.,
which he founded in 1987. From 1984 to
1986, Mr. Martínez Guzmán worked as
vice president, Latin America Sovereign
Restructuring unit of Citibank, N.A. in
New York, where he helped coordinate
the 1984 Argentina Financing Plan.
Since founding Fintech, Mr. Martínez
Guzmán has participated, at times
as the largest creditor, in most of the
sovereign debt restructurings around
the world, historically approaching
sovereign restructurings with a
collaborative approach to governments.
Mr. Martínez Guzman also has a strong
track record of successful involvement
in corporate restructurings and debt
exchanges, most often working with
companies to ensure long-term viability
and business continuity as a value
recovering proposition. More recently,
Mr. Martínez Guzmán has allocated a
significant portion of Fintech’s position to
private equity investments, successfully
investing across multiple jurisdictions in
Latin America, Asia, and Europe, and
across a wide range of sectors, including
telecom and media, utilities, industrials,
infrastructure, construction, oil and gas,
and financial institutions.
Mr. Martínez Guzmán brings a renowned
worldwide expertise in the financial
sector and global markets to Cemex’s
Board of Directors, providing significant
guidance on Cemex’s proactive financial
management for deleveraging and
improving the credit rating, as well as
Cemex’s sustainable growth strategy.
Education: Mr. Martínez Guzmán holds a
B.S. degree in Mechanical and Electrical
Engineering from the Universidad Nacional
Autónoma de México (UNAM), a B.A.
degree in Philosophy from the Universitas
Gregoriana in Rome, Italy, and an MBA
from Harvard Business School.
99
Cemex 2024 Integrated Report
Contents
Our Company
Our Strategy
Financial Performance
Environmental Excellence
Stakeholder Engagement
Governance
Corporate Governance
• Our Board of Directors
Executive Committee
Ethics and Compliance
Risk and Opportunity Management
Respect for Human Rights
Appendix
Armando Garza Sada (67)
Tenure on Cemex’s Board of Directors:
Since 2015.
Board Membership at Listed Entities: Mr.
Garza Sada is a member of the board of
directors of Alfa, S.A.B. de C.V., a listed
corporation in Mexico with presence in 25
countries, and a business portfolio that
includes petrochemicals, refrigerated
food, and energy. He is also a member of
the board of directors of Alpek, S.A.B. de
C.V., Nemak, S.A.B. de C.V., Axtel, S.A.B.
de C.V., El Puerto de Liverpool, S.A.B. de
C.V., and Grupo Lamosa, S.A.B. de C.V., all
of which are listed corporations in Mexico.
Other Current Roles: Mr. Garza Sada is an
alternate member of the board of directors
of Grupo Financiero BBVA México, S.A. de
C.V. (a private financial institution).
Experience: Mr. Garza Sada’s decades
of experience at the highest corporate
level in top-ranked companies provides
Cemex’s Board of Directors with a unique
insight on the global economic landscape,
and a hands-on experience to best align
Cemex’s business strategy with its day-
to-day operations.
Education: Mr. Garza Sada holds a B.S.
degree in Industrial Engineering from the
Massachusetts Institute of Technology and
an MBA from Stanford University.
Everardo Elizondo Almaguer (81)
Tenure on Cemex’s Board of Directors:
Since 2016.
Tenure on Cemex’s Audit Committee:
Member since 2018 and President since 2019.
Board Membership at Listed Entities: Mr.
Elizondo Almaguer is a member of the
board of directors of Compañía Minera
Autlán, S.A.B. de C.V., and of Gruma,
S.A.B. de C.V., all of which are listed
corporations in Mexico.
Other Current Roles: Mr. Elizondo
Almaguer is a professor of
Macroeconomics at EGADE Business
School of the Instituto Tecnológico y
de Estudios Superiores de Monterrey
and at the School of Economics of the
Universidad Autónoma de Nuevo León
(UANL). He is also a member of the
board of directors of Afore XXI-Banorte,
S.A. and Rassini, S.A.P.I. de C.V. (both are
non-public corporations).
Experience: Mr. Elizondo Almaguer
qualifies as a “financial expert” for
purposes related to the Sarbanes-Oxley
Act (“SOX”).
Mr. Elizondo Almaguer served as deputy
governor of the Banco de México
(Mexico’s central bank) from 1998 to
2008. Before that, he was the director
for Economic Studies at Alfa, S.A.B. de
C.V. (a Mexican listed company), and
at Grupo Financiero BBVA México S.A.
de C.V. (a private financial institution).
He founded and was the director of the
Graduate School of Economics of the
Universidad Autónoma de Nuevo León.
With a distinguished professional
career as a financial analyst, exemplary
public official and academic scholar,
Mr. Elizondo Almaguer is a financial
expert and brings to Cemex’s Board of
Directors extensive knowledge of the
financial system and the international
macroeconomic environment,
providing insights to ensure Cemex’s full
observance of best corporate practices,
and identify new business opportunities.
Education: Mr. Elizondo Almaguer
holds a B.A. degree in Economics from
the Universidad Autónoma de Nuevo
León, a Master’s in Economics from
the University of Wisconsin-Madison,
a certificate from Harvard University’s
International Tax Program and an
Honoris Causa Doctorate from the
Universidad Autónoma de Nuevo León.
Marcelo Zambrano Lozano (69)
Tenure on Cemex’s Board of Directors:
Since 2017.
Tenure on Cemex’s Sustainability,
Climate Action, Social Impact, and
Diversity Committee: Since 2017.
Board Membership at Listed Entities:
Mr. Zambrano Lozano is a member of
the technical committee of one of Go
Proyectos, S.A. de C.V.’s development
trusts, known by its ticker symbol as
CARZACK 18, which is listed in Mexico.
Other Current Roles: Mr. Zambrano
Lozano is a founding partner and
executive chairman of the board of
directors of Carza, S.A.P.I. de C.V., a
recognized real estate development
non-public corporation in the residential,
commercial, and industrial sectors.
Additionally, Mr. Zambrano Lozano is
also a founding partner and member
of the board of directors of Proyectos
Industriales Carza (PIC), a company
dedicated to the construction, sale,
and rental of subdivisions and industrial
spaces. He is a member of the board of
directors of Grupo Vigia, S.A. de C.V. (a
Mexican non-public corporation dedicated
to distribution of gas, fuel, and other oil
derivatives) and GreenPaper (Productora
de Papel, S.A. de C.V.). a Mexican non-
public corporation dedicated to the
fabrication and distribution of paper. He
is also a member of the general board of
Universidad de Monterrey, A.C.
Experience: Mr. Zambrano Lozano’s
ample knowledge of the real estate and
construction industries in Mexico and
the United States provides Cemex’s
Board of Directors with an insightful
view of major trends shaping the sector
globally, particularly in key areas such as
logistics and supply-chain development,
thus helping Cemex to anticipate the
evolving needs of its customers in the
aforementioned markets.
Education: Mr. Zambrano Lozano
holds a B.A. degree in Marketing from
the Instituto Tecnológico y de Estudios
Superiores de Monterrey.
Ramiro Gerardo Villarreal Morales (77)
Tenure on Cemex’s Board of Directors:
Since 2017.
Tenure on Cemex’s Corporate Practices
and Finance Committee: Since 2024.
Board Membership at Listed Entities:
Mr. Villarreal Morales is a member
of the board of directors of Andean
Precious Metals, a company listed on
the Toronto Stock Exchange. He is also
a member of the board of directors,
the audit committee and the corporate
practices committee of Vinte Viviendas
Integrales, S.A.B. de C.V., and a member
of the board of directors and alternate
member of the audit and corporate
practices committee of GCC, S.A.B.
de C.V. (formerly Grupo Cementos de
Chihuahua, S.A.B. de C.V.), two public
corporations listed in Mexico.
Other Current Roles: Mr. Villarreal
Morales is a member of the advisory
board of Arendal (a non-public
corporation in the construction industry).
100 Cemex 2024 Integrated Report
Contents
Our Company
Our Strategy
Financial Performance
Environmental Excellence
Stakeholder Engagement
Governance
Corporate Governance
• Our Board of Directors
Executive Committee
Ethics and Compliance
Risk and Opportunity Management
Respect for Human Rights
Appendix
Experience: Mr. Villarreal Morales joined
Cemex in 1987 as General Legal Director,
and subsequently served in various positions,
including Executive Vice President of Legal
and Advisor to the Chairman of Cemex’s
Board of Directors and the Chief Executive
Officer until December 2017.
Previously, he served on the board of
directors of Banco Bancrea, S.A., Institución
de Banca Múltiple, a Mexican bank, and
as deputy managing director of the
regional bank division of Banpaís, where
he was responsible for the operation of
the bank’s 121 branches, the trust and legal
departments.
Until February 2012, he was the secretary
of the board of directors of Enseñanza e
Investigación Superior, A.C., a non-profit
managed by the Instituto Tecnológico y de
Estudios Superiores de Monterrey.
He served as Secretary of Cemex’s Board of
Directors from 1995 to March 30, 2017.
With over 50 years of professional
experience in different countries where
Cemex has operations and in Cemex’s
governing bodies, in the banking and
financial sector, and as a member of the
audit committee of other listed companies,
Mr. Villarreal Morales qualifies as a
“financial expert” for purposes related
to the Sarbanes-Oxley Act, and provides
Cemex’s Board of Directors with key
guidance on regulatory and legal matters,
as well as international financial transactions
and financial and accounting compliance,
helping to ensure strict observance of all
applicable laws and relevant accounting
standards and principles.
Education: Mr. Villarreal Morales holds a
B.A. degree in Law from the Universidad
Autónoma de Nuevo León, and a Master’s
in Finance from the University of
Wisconsin-Madison.
Gabriel Jaramillo Sanint (75)
Tenure on Cemex’s Board of Directors:
Since 2018.
Tenure on Cemex’s Audit Committee:
Since 2023.
Board Membership at Listed Entities:
Mr. Jaramillo Sanint is a member of the
board of directors of Minerva Foods, a
listed corporation in Brazil.
Other Current Roles: Mr. Jaramillo
Sanint is the founder and director of
a sustainable economic development
program in the Orinoco Basin in
Colombia. He is also a member of the
board of directors of Centro Hospitalario
Tatama (Colombia) (a non-profit
organization), Medicines for Malaria
Ventures (a non-profit organization)
based in Geneva, Switzerland, and
Banco BTG Pactual, Colombia and of
Aliar, S.A. (an agro-industrial company
dedicated to pig farming).
Experience: Previously, Mr. Jaramillo
Sanint served as chairman of the board
of directors and chief executive officer
of Santander USA (formerly Sovereign
Bank), Banco Santander Brasil, and
Banco Santander Colombia, and as
CEO of Citibank Mexico, and Citibank
Colombia. Since retiring, he has focused
on health-related philanthropic work,
leading the transformation of the Global
Fund to Fight AIDS, Tuberculosis and
Malaria, which raised $13 billion from
2017 to 2020.
From October 2012 to April 2018, he
was a member of the board of directors
and president of the audit committee of
Cemex Latam Holdings, S.A., a company
listed on the Colombian Securities
Exchange at the time.
With an outstanding career of more than
35 years in South America, Mexico and
the United States, Mr. Jaramillo Sanint not
only brings to Cemex’s Board of Directors
extensive experience in complex financial
matters, but also in sustainability, health
and safety, as well as corporate social
responsibility, a pillar of Cemex’s global
strategy to achieve sustainable growth
and create lasting value.
Education: Mr. Jaramillo Sanint holds
a B.A. degree in Marketing and an
MBA from California State University.
In 2015, Mr. Jaramillo Sanint received
honorary degrees from the Universidad
Autónoma de Manizales in Colombia and
Northeastern University.
Isabel María Aguilera Navarro (64)
Tenure on Cemex’s Board of Directors:
Since 2019.
Tenure on Cemex’s Sustainability,
Climate Action, Social Impact, and
Diversity Committee: Since 2023.
Board Membership at Listed Entities:
Mrs. Aguilera Navarro is a member of the
board of directors of Oryzon Genomics,
S.A., a listed corporation in Spain.
Other Current Roles: Mrs. Aguilera
Navarro is an independent consultant
and executive in residence at the Esade
Business School in Barcelona. She is a
member of the board of directors of the
Spanish multinational state-owned entity
Canal de Isabel II, which manages the
water supply infrastructure of Madrid,
Spain and has operations in South America.
She is also a member of the board of
directors of Making Science, a company
listed on the BME Growth market.
Experience: Mrs. Aguilera Navarro was
president of General Electric Spain and
Portugal from 2008 to 2009, general
manager of Google Inc. (now Alphabet)
Spain and Portugal from 2006 to 2008,
operations director of NH Hotel Group,
S.A. from May 2002 to June 2005,
and general director of Dell Computer
Corporation for Spain, Italy and Portugal
from March 1997 to May 2002. She has
also served as an advisor to various
Spanish non-profit organizations,
including the Instituto de Empresa,
and the Asociación para el Progreso
de la Gestión. She was a member of
the advisory board of Farmaindustria,
Ikor, and Pelayo Mutua de Seguros, and
a business entrepreneur from 2009
to 2012 at Twindocs International.
Previously, she was a board member
of Indra, Banco BMN, Aegón Seguros,
Banca Farmafactoring S.p.A., Hightech
Payment System S.A., Lar España, and
Clínica Baviera.
With her experience in multinational
corporations in Europe, Mrs. Aguilera
Navarro brings to Cemex’s Board of
Directors guidance on the overall global
business landscape and an informed
view on innovation, entrepreneurship,
technological and digitalization issues,
from customer-centric platforms to
organizational processes and essential
corporate functions, a key element of
Cemex’s digital strategy. In addition,
she brings important insights in urban
planning and a critical customer
influencer, architects.
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Cemex 2024 Integrated Report
Contents
Our Company
Our Strategy
Financial Performance
Environmental Excellence
Stakeholder Engagement
Governance
Corporate Governance
• Our Board of Directors
Executive Committee
Ethics and Compliance
Risk and Opportunity Management
Respect for Human Rights
Appendix
Education: Mrs. Aguilera Navarro holds
a B.A. degree in Architecture and Urban
Planning from the Escuela Técnica Superior
de Arquitectura de Sevilla (ETSA), an MBA
from the IE Business School, a Program
for Management Development (PMD)
from the IESE Business School, and has a
Specialization Diploma in the Metaverse
from The Valley Digital Business School
in Madrid and a Diploma in Museum
Management from ELBS School. Likewise,
she completed the Environmental, Social
and Governance (ESG) and Corporate
Finance for Board Members modules at the
Esade Business School in Barcelona.
María de Lourdes Melgar Palacios (62)
Tenure on Cemex’s Board of Directors:
Since 2023.
Tenure on Cemex’s Sustainability,
Climate Action, Social Impact, and
Diversity Committee: Since 2023.
Board Membership at Listed Entities:
Dr. Melgar Palacios is a member of the
board of directors of Smurfit Westrock
Group PLC, an Irish conglomerate
incorporated in Ireland, listed in the NYSE
and the London Stock Exchange (“LSE”).
Prior to the merger with Westrock, from
2020 to July 2024, she was a member of
the board of directors of Smurfit Kappa
Group PLC.
Other Current Roles: Dr. Melgar
Palacios is a member of the board of
directors of Banco Santander México,
S.A., Institución de Banca Múltiple,
Grupo Financiero Santander México.
She is a researcher affiliated with the
Center of Collective Intelligence at the
Massachusetts Institute of Technology
and nonresident researcher at the Baker
Institute Center for Energy Studies. She
is a member of the board of directors
of Mount Holyoke College (academic
institution). Additionally, she is a member
of the board of directors of the following
non-profit organizations: Global Energy
Alliance for People and Planet, the
Natural Resource Governance Institute,
and Chapter Zero Mexico. Dr. Melgar
Palacios is a member of the International
Women’s Forum, having chaired the
Mexican Local Forum from 2016 to 2018.
Experience: From 1994 to 1996, Dr.
Melgar Palacios was Director of
Economic Relations with Central America
and the Caribbean, and from 1996
to 1997, Counselor at the Permanent
Mission of Mexico in the Organization of
American States. From 1997 to 2005, she
was a career member of the Mexican
Foreign Service. From 1998 to 2002,
she served as the general director of
the International Affairs of the Ministry
of Energy, having participated in the
strategy and negotiation to stabilize
the international oil market, and led
the energy sector in the Continental
Shelf Delimitation Treaty with the
United States in the Western Gulf of
Mexico (Doughnut Hole). From 2005
to 2007, she served as Minister at
the Mexican permanent mission to
the Organization for Economic Co-
Operation and Development (OECD),
overseeing the coordination of various
topics and representing Mexico in
meetings regarding matters such as
corporate governance, anticorruption,
sustainable development, among others.
Subsequently, during the process of
design, negotiation and implementation
of the Energy Reform of 2013, she served
as Undersecretary of Electricity from
December 2012 to February 2014 and
as Undersecretary of Hydrocarbons
from February 2014 to July 2016, at the
Ministry of Energy of Mexico. Dr. Melgar
Palacios also held the Robert E. Wilhelm
chair at the Massachusetts Institute of
Technology.
Her academic and professional experience,
as well as her experience in nonprofit
organizations and matters related to
energy, sustainability, climate action,
and corporate governance, provides
Cemex’s Board of Directors with a unique
perspective on said matters, all of which
are key components for Cemex’s future.
Education: Dr. Melgar Palacios holds a B.A.
in International Relations and Comparative
Literature from Mount Holyoke College
and studied at the Paris Institute of Political
Studies (Sciences Po). She completed
diplomatic studies at the Instituto Matías
Romero de Estudios Diplomáticos,
graduating as a member of the 1997 class of
the Mexican Foreign Service. She also holds a
Master’s and a PhD in Political Science with a
specialization in Political Economy, both from
the Massachusetts Institute of Technology.
102 Cemex 2024 Integrated Report
Contents
Our Company
Our Strategy
Financial Performance
Environmental Excellence
Stakeholder Engagement
Governance
Corporate Governance
• Our Board of Directors
Executive Committee
Ethics and Compliance
Risk and Opportunity Management
Respect for Human Rights
Appendix
Board of Directors Skills Matrix
The following table is a summary of the skills and experience that our Board of Directors’
members contribute to Cemex, encompassing both general and ESG-related aspects.
Each year, Cemex, assisted by external advisors, prepares a questionnaire that all Board
members must complete regarding their biographies, skills, and expertise. Once the
questionnaires are completed, Cemex’s Legal area reviews and confirms the information
using publicly available information. The biographies, skills, and expertise information is
then sent to the Chairman and Secretary of the Board of Directors and the company’s
CEO before the information is disclosed.
CEO / Public Management Experience, including Governance
Finance
Risk Management
Operations, including Logistics
Sustainability, including Climate Change
HR, including Compensation
Regulatory
Construction, including Building Materials
Technology, including AI and Cybersecurity
Energy
100%
85%
77%
77%
69%
69%
69%
46%
38%
38%
ä For a full list of skills, please refer to the full Board of Directors Skills Matrix on page 226 of this report.
Board Committees
In performing its functions, our Board of
Directors is aided by three committees
with specialized areas of expertise. These
Committees provide counseling and
advice and may handle specific tasks
on our Board of Directors’ agenda.
The members of our Audit Committee,
Corporate Practices and Finance
Committee, and Sustainability, Climate
Action, Social Impact, and Diversity
Committee are appointed by our
shareholders. For the full description
of each of the Board Committee
responsibilities, please refer to our
annual report on Form 20-F located
at our website at www.cemex.com.
Audit Committee
Everardo Elizondo Almaguer – President
Gabriel Jaramillo Sanint
Francisco Javier Fernández Carbajal
In accordance with Mexican law and our
company’s bylaws, all members of the Audit
Committee, including its president, must
be independent directors. In addition, as
a company listed on the NYSE, Cemex is
required to have Audit Committee members
with significant financial expertise. As of
2024, the president of our Audit Committee
met the qualifications of a “financial expert”
as defined by SOX. For detailed information
on the skillset of our Audit Committee,
please refer to the Board of Directors Skill
Matrix on page 226 of this report.
During 2024, the Audit Committee met five
times with meeting attendance of 100%.
To aid our Board of Directors in overseeing
the main risks to which Cemex is exposed,
the Audit Committee periodically reviews
an Operational Risk Assessment that
focuses on identifying those areas where
deficiencies in our controls exist or are
more likely to exist, their potential financial
impact and the probability of the adverse
impact materializing. The Audit Committee
members provide guidance on managing
these financial and compliance-related
risks, aligning with Cemex’s overall risk
management strategy.
Responsibilities:
• Evaluating internal controls and
procedures and identifying deficiencies;
• Dictating corrective and preventive
measures in response to breaches of
operational and accounting guidelines and
policies;
• Evaluating the performance of external
auditors and analyzing the reports,
opinions, and other information issued by
such external auditors;
• Reviewing financial statements;
• Informing the Board of Directors of the
state of the company’s internal controls,
internal audit, and accounting systems,
including any breaches detected;
• Supporting the Board of Directors in
producing different reports submitted to
the shareholders;
• Assessing the effects of any modifications
to the accounting policies approved during
any fiscal year;
• Supervising complaints raised by
employees, third parties, and other
stakeholders to report ethical, corruption,
and/or compliance matters utilizing
confidential methods and other
whistleblowing mechanisms;
• Ensuring compliance by the Chief Executive
Officer with the resolutions adopted by the
shareholders and Board of Directors; and
• Analyzing the risks identified by
independent auditors, and the accounting,
internal control, and process assessment
areas.
Certain matters dealt with during 2024:
• Follow-up of the SEC inquiries regarding
the 2022 annual report filed on Form 20-F;
• Review and analysis of the accounting
provisions and impact on the cash flow
resulting from the tax proceedings in Spain;
• Review of cybersecurity and artificial
intelligence information, risks, and internal
controls;
• Determination of the non-applicability of
the Minimum Tax in the United States of
America; and
• Review of the most relevant transactions
and matters during the 2024 calendar
year.
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Our Strategy
Financial Performance
Environmental Excellence
Stakeholder Engagement
Governance
Corporate Governance
• Our Board of Directors
Executive Committee
Ethics and Compliance
Risk and Opportunity Management
Respect for Human Rights
Appendix
104 Cemex 2024 Integrated Report
Contents
Our Company
Our Strategy
Financial Performance
Environmental Excellence
Stakeholder Engagement
Governance
Corporate Governance
• Our Board of Directors
Executive Committee
Ethics and Compliance
Risk and Opportunity Management
Respect for Human Rights
Appendix
Corporate Practices and Finance Committee
Francisco Javier Fernández Carbajal –
President
Rodolfo García Muriel
Ramiro Gerardo Villarreal Morales
In accordance with Mexican law and
our company’s bylaws, all members of
the Corporate Practices and Finance
Committee, including its president, must
be independent directors. During 2024,
the Corporate Practices and Finance
Committee met four times with meeting
attendance of 100%. For detailed
information on the skillset of our Corporate
Practices and Finance Committee, please
refer to the Board of Directors Skill Matrix
on page 226 of this report.
To aid our Board of Directors in overseeing
the main risks to which Cemex is exposed,
the Corporate Practices and Finance
Committee reviews and discusses Cemex’s
Risk and Opportunity Agenda at least once
a year. This Global Risk Agenda outlines
key risks and opportunities that may impact
the company’s strategic priorities across
the short term (1 year), medium-term (1-5
years), and long-term (5+ years). This
agenda considers risks at country, regional,
and corporate levels, including, but not
limited to:
• Financial risks (FX, interest rates,
refinancing, liquidity)
• Economic risks
• Political and geological risks
• Business planning risks (M&As,
acquisitions/divestments, growth strategy)
• Competitive dynamics (market share,
pricing)
• Regulatory and compliance risks
• Legal risks
• Sustainability risks (climate, human rights,
environmental, social, and governance)
• Supply chain risks
• Cybersecurity risks
The Committee members are responsible
for providing insights and direction on
managing these risks and opportunities,
as well as overseeing the effectiveness of
Cemex’s risk management system.
Responsibilities:
• Performing the role of a nomination
and compensation committee, mainly
by evaluating the hiring, firing, and
compensation of our Chief Executive
Officer and Chairman of the Board of
Directors and reviewing the hiring and
compensation policies for our executive
officers;
• Reviewing related party transactions,
any conflicts of interest, and unusual or
material transactions;
• Reviewing different policies, including
those regarding the use of corporate
assets;
• Evaluating financial plans, merger and
acquisition opportunities, and waivers
granted to directors, senior management,
and certain other persons to participate in
and benefit from corporate opportunities;
and
• Reviewing the financial strategy and its
implementation.
Certain matters dealt with during 2024:
• Review of the 2024 budget and the 2024
financial plan proposed to Cemex’s Board
of Directors;
• Review of the annual and variable
compensation of Cemex’s Chairman of
the Board of Directors and Cemex’s Chief
Executive Officer for the year 2024, as
well as the variable compensation of
senior managers and different business
units;
• Review of pension fund status and
evaluation;
• Review of the litigation relating to the
fines imposed by the tax authorities in
Spain;
• Review of proposals on donations, related
party transactions, conflict of interest,
authorizations to acquire equity securities
representing Cemex’s capital stock in
compliance with the measures regarding
equity thresholds in Cemex set forth in the
bylaws, derivative transactions, the self-
evaluation and peer evaluation procedure
of Cemex’s Board of Directors and the
changes to the Insider Trading and
Transactions with Cemex Securities Policy;
• Review of 2024 growth strategy, quarterly
results and financial transactions;
• A Cemex Group senior talent
management review and evaluation; and
• Review of the Global Risk Agenda for the
period 2024-2025.
105 Cemex 2024 Integrated Report
Contents
Our Company
Our Strategy
Financial Performance
Environmental Excellence
Stakeholder Engagement
Governance
Corporate Governance
• Our Board of Directors
Executive Committee
Ethics and Compliance
Risk and Opportunity Management
Respect for Human Rights
Appendix
Sustainability, Climate Action, Social Impact, and Diversity Committee
Armando J. García Segovia – President
Marcelo Zambrano Lozano
Isabel María Aguilera Navarro
María de Lourdes Melgar Palacios
During 2024, the Sustainability, Climate
Action, Social Impact, and Diversity
Committee met four times with meeting
attendance of approximately 94%. For
detailed information on the skillset of
our Sustainability, Climate Action, Social
Impact, and Diversity Committee, please
refer to the Board of Directors Skill Matrix
on page 226 of this report.
The Sustainability, Climate Action, Social
Impact and Diversity Committee reviews
and discusses Cemex’s Sustainability
Risk and Opportunity Agenda at least
once a year. This Sustainability Risk
and Opportunity Agenda identifies key
sustainability-related risks and opportunities
that could impact Cemex’s sustainability
priorities, including but not limited to our
Future in Action and social impact strategies,
over the short-term (1 year), medium-term
(1-5 years), and long-term (5+ years). This
agenda considers environmental, social,
and governance (ESG) concerns at the local,
regional, and corporate levels, covering
a broad range of risks, including, but not
limited to:
• Environmental risks: Air emissions
(including CO2), water availability and
cost, sustainability regulations.
• Social risks: Community relationships,
business ethics, human rights, health and
safety, talent attraction and retention.
• Governance and operational risks: ESG
disclosure, public sustainability targets,
cybersecurity, availability and cost of
traditional and alternative energy sources,
natural disasters, and sustainability-
related products and solutions.
The Committee members are responsible
for providing insights and direction on
managing these sustainability risks and
opportunities, seeking alignment with
Cemex’s overall risk management strategy.
Responsibilities:
• Overseeing sustainability, social impact,
and diversity policies, strategies, goals,
and programs;
• Supporting and overseeing the
implementation of our Human Rights
program, including our Human Rights
policy;
• Evaluating the effectiveness of
sustainability and climate action, social
impact, and diversity programs, goals,
and initiatives;
• Identifying the main risks concerning
sustainability-related matters (including
human rights) and overseeing mitigation
actions;
• Providing assistance to the Chief
Executive Officer and senior management
team regarding the strategic direction on
sustainability and social responsibilities
model; and
• Providing assistance to the Corporate
Practices and Finance Committee as
needed on diversity matters.
Certain matters dealt with during 2024:
• Review of Cemex’s 2023 Integrated
Report structure, content, and overall
performance, presented in March 2024;
• Review of key sustainability performance
indicators (e.g., climate action, health
and safety, water and biodiversity,
circular economy, and social impact), of
benchmarking with industry peers, and of
Cemex’s ESG rankings and ratings;
• Discussion of the sustainability strategy in
the U.S. and SCA&C regions;
• Review of the 2024-2025 sustainability
risk agenda and Cemex’s Future in Action
program’s six pillars;
• Review of the progress in achieving
Cemex’s sustainability objectives for 2025
and 2030;
• Inclusion in the financial statements
of notes related to Cemex’s climate
action, as well as on CO2 emissions and
sustainable financing;
• Review of the results of Cemex’s employee
satisfaction surveys;
• Review of the communication strategy in
sustainability issues;
• Analysis of alternatives to promote the
access of women to Cemex’s workforce;
and
• Review and recommendation for approval
of the enhanced Human Rights policy
published in 2024, effective January 1,
2025.
Executive Committee
Our CEO and members of our Executive Committee execute our strategy
and oversee the day-to-day operations of our company and constantly
interact with our Board of Directors and certain stakeholders.
Fernando A. González (70)
Chief Executive Officer (since 2014)
Since joining Cemex in 1989, Fernando A.
González has held various positions in the
Strategic Planning, Business Development,
and Human Resources departments
through 1998. From 1998 through 2009,
Mr. González led various regions of Cemex,
including SCA&C, Europe, Asia, and
Oceania. He was appointed as Cemex’s
Executive Vice President of Planning and
Development in May 2009, and he was
appointed Cemex’s Chief Financial Officer
in 2011. Mr. González held these positions
until he was named Chief Executive Officer
in 2014. He was named President of the
Global Cement and Concrete Association
in 2023 and is a member of the Board of
Directors of Cemex, GCC, S.A.B. de C.V.
and of Axtel, S.A.B. de C.V. He is a member
of the Board of Trustees of Tecmilenio
University, which forms part of the Instituto
Tecnológico y de Estudios Superiores
de Monterrey. Mr. González holds a BA
degree in Business Administration and
an MBA from the Instituto Tecnológico y
de Estudios Superiores de Monterrey.
Maher Al-Haffar (66)
Executive Vice President of Finance
and Administration and
Chief Financial Officer (CFO)
(since 2020)
Maher Al-Haffar joined Cemex in 2000
and has held several executive positions,
including Managing Director of Finance,
Head of Investor Relations, and most
recently, Executive Vice President
of Investor Relations, Corporate
Communications, and Public Affairs. In
his current position, he heads the areas
of Finance, Controllership, Treasury,
Insurance & Risk Management, Legal,
Procurement & Trading, and Global
Enterprise Services. Additionally, he is a
member of the UN Global Compact CFO
Coalition for the SDGs, NYSE Advisory
Board, and before joining Cemex, he
spent nineteen years with Citicorp
Securities Inc. and with Santander
Investment Securities as an investment
banker and capital markets professional.
He holds a BS degree in Economics from
the University of Texas and a Master’s
degree in International Relations and
Finance from Georgetown University.
106 Cemex 2024 Integrated Report
Contents
Our Company
Our Strategy
Financial Performance
Environmental Excellence
Stakeholder Engagement
Governance
Corporate Governance
Our Board of Directors
• Executive Committee
Ethics and Compliance
Risk and Opportunity Management
Respect for Human Rights
Appendix
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Our Company
Our Strategy
Financial Performance
Environmental Excellence
Stakeholder Engagement
Governance
Corporate Governance
Our Board of Directors
• Executive Committee
Ethics and Compliance
Risk and Opportunity Management
Respect for Human Rights
Appendix
Mauricio Doehner (50)
Executive Vice President of Corporate
Affairs, Enterprise Risk Management and
Social Impact (since 2021)
Mauricio Doehner joined Cemex in 1996 and
has held several executive positions in areas
such as Strategic Planning and Enterprise Risk
Management for Europe, Asia, the Middle
East, South America and Mexico, and most
recently Executive Vice President of Corporate
Affairs and Enterprise Risk Management.
Additionally, he has also worked in the public
sector within the office of the Mexican
Presidency. Mr. Doehner was president of the
Mexican National Cement Chamber (Cámara
Nacional del Cemento) between 2017 and 2019,
Vice President of the Transformation Industry
Chamber (CAINTRA – Cámara de la Industria de
Transformación) between 2012 and 2013. He’s
currently Vice President of Social Responsibility
and Vertebration of the Mexican Employers
Confederation (COPARMEX – Confederación
Patronal de la República Mexicana), and
member of the board of directors of Vista Oil
& Gas, S.A.B. de C.V., Instituto Tecnológico y
de Estudios Superiores de Monterrey’s Escuela
de Ciencias Sociales y Gobierno (formerly
EGAP), Trust for the Americas, and Museo
de Arte Contemporáneo de Monterrey, A.C.
He holds a BA degree in Economics from the
Instituto Tecnológico y de Estudios Superiores
de Monterrey, holds an MBA from Instituto
Panamericano de Alta Dirección de Empresas
(IPADE) and IESE Business School of the
University of Navarra in Madrid, and a Master’s
in Public Administration from Harvard University.
Jesús González (59)
President of Cemex South, Central America
and the Caribbean (since 2019)
Jesús González joined Cemex in 1998
and has held several senior positions,
including Corporate Director of Strategic
Planning, Vice President of Strategic
Planning in Cemex USA, President of
Cemex Central America, President of
Cemex UK and, more recently, Executive
Vice President of Sustainability and
Operations Development. He holds a BS in
Naval Engineering and an M.Sc. in Naval
Engineering, both from the Polytechnic
University of Madrid, as well as an MBA
from IESE—University of Navarra,
Barcelona.
José Antonio González (54)
Executive Vice President of Strategic
Planning and Business Development
(since 2020)
José Antonio González joined Cemex in
1998 and has held executive positions
in the Finance, Strategic Planning, and
Corporate Communications and Public
Affairs areas, including, most recently,
Executive Vice President of Finance and
Administration (CFO). Additionally, Mr.
González is a member of the board of
directors of GCC and is an alternate
director of the board of directors of
Axtel, S.A.B. de C.V. He holds a BS
degree in Industrial Engineering from
the Instituto Tecnológico y de Estudios
Superiores de Monterrey and an MBA
from Stanford University.
Luis Hernández (61)
Executive Vice President of Digital and
Organization Development (since 2020)
Luis Hernández joined Cemex in 1996
and has held senior management
positions in Strategic Planning and
Human Resources. In his current position,
he heads the areas of Organization
and Human Resources, Information
Technology, Digital Innovation, as well as
Cemex Ventures. He holds a BS degree
in Civil Engineering from the Instituto
Tecnológico y de Estudios Superiores
de Monterrey, a Master’s degree in
Civil Engineering, and an MBA from
the University of Texas at Austin.
108 Cemex 2024 Integrated Report
Contents
Our Company
Our Strategy
Financial Performance
Environmental Excellence
Stakeholder Engagement
Governance
Corporate Governance
Our Board of Directors
• Executive Committee
Ethics and Compliance
Risk and Opportunity Management
Respect for Human Rights
Appendix
Sergio Menéndez (54)
President of Cemex Europe, Middle East,
Africa & Asia (since 2020)
Sergio Menéndez joined Cemex in 1993
and has held several executive positions,
including Director of Planning and
Logistics in Asia, Corporate Director of
Commercial Development, President
of Cemex Philippines, Vice President of
Strategic Planning for the Europe, Middle
East, Africa, and Asia region, President
of Cemex Egypt, Vice President of
Infrastructure Segment and Government
Sales in Mexico, and most recently, as Vice
President of Distribution Segment Sales in
Mexico. He holds a BS degree in Industrial
Engineering from the Instituto Tecnológico
y de Estudios Superiores de Monterrey
and an MBA from Stanford University.
Jaime Muguiro (56)
President of Cemex USA (since 2019)
Jaime Muguiro joined Cemex in 1996
and has held several executive positions
in the Strategic Planning, Business
Development, Ready-Mix Concrete,
Aggregates, and Human Resources
areas. He headed Cemex’s operations in
Egypt, our former Mediterranean region,
and, more recently, our operations in
the South, Central America, and the
Caribbean region. He holds a BA degree
in Management from San Pablo CEU
University in Spain, a Law degree from
the Universidad Complutense de Madrid,
and an MBA from the Massachusetts
Institute of Technology.
Ricardo Naya (52)
President of Cemex Mexico (since 2019)
Ricardo Naya joined Cemex in 1996 and
has held several executive positions,
including Vice President of Strategic
Planning for the South, Central America
and the Caribbean region, Vice President
of Strategic Planning for the Europe,
Middle East, Africa and Asia region,
President of Cemex Poland and the
Czech Republic, Vice President of
Strategic Planning for the United States,
Vice President of Commercial and
Marketing in Mexico, Vice President of
Distribution Segment Sales in Mexico,
and most recently, President of Cemex
Colombia. He holds a BA degree in
Economics from the Instituto Tecnológico
y de Estudios Superiores de Monterrey
de Monterrey and an MBA from the
Massachusetts Institute of Technology.
Louisa (Lucy) P. Rodriguez (65)
Executive Vice President of Investor
Relations, Corporate Communications
and Public Affairs (since 2021)
Lucy Rodriguez joined Cemex in 2006
and has held several executive positions,
including Head of Investor Relations.
She has over 25 years of experience in
international finance and capital markets.
Prior to Cemex, Ms. Rodríguez spent 15
years at Citibank and Santander where
she was a capital markets professional in
Emerging Markets and held various senior
management roles. Additionally, she is a
member of the board of directors of BDT &
MSD Investment Corp, a $4 billion private
credit fund in the U.S. In her early career,
she also worked for KPMG, and she was
previously a Certified Public Accountant.
She holds a BA degree in Economics from
Trinity College (Hartford, CT.), an MBA
from New York University, and a Master’s
from Columbia University School of
International and Public Affairs.
109 Cemex 2024 Integrated Report
Contents
Our Company
Our Strategy
Financial Performance
Environmental Excellence
Stakeholder Engagement
Governance
Corporate Governance
Our Board of Directors
• Executive Committee
Ethics and Compliance
Risk and Opportunity Management
Respect for Human Rights
Appendix
Executive Compensation
In 2024, we paid an aggregate amount of US$48 million in compensation to the members
of our Board of Directors and our senior management, of which US$31 million were paid
as base compensation and cash-based performance bonuses, including pension and
post-employment benefits, and US$17 million corresponded to stock-based long-term
compensation. Members of our Board of Directors are compensated in a fixed amount
based on participation in meetings of our Board of Directors, which is approved each year
at our Ordinary General Shareholders Meeting. The Chairman of our Board of Directors is
compensated in a similar manner as our senior management.
The following table discloses the amount of compensation paid to our Senior Management
for the years ended December 31, 2024, 2023, and 2022:
Year
Average Total
Compensation
paid to our Senior
Management (1) (2)
Average Adjusted
Compensation
paid to our Senior
Management (1) (3)
Consolidated
Net Income
(Loss)
(Millions of Dollars)
Most
significant
financial
measure
2024
3.7 million
4.6 million
960
CVA
2023
5.0 million
7.6 million
199
CVA
2022
3.1 million
3.4 million
885
CVA
1
Our Senior Management includes our Executive Committee members, our Vice President of Comptrollership and our Senior Vice
President of Legal.
2
The amount of “Average Total Compensation paid to our Senior Management” includes paid salary, bonuses, stock awards,
(including, but not limited to, our Key Value Positions Plan (“KVP Plan”) and the Performance Plan, as defined below), our Variable
Compensation Plan (“VCP”), and other compensation benefits.
3
The “Average Adjusted Compensation paid to our Senior Management” is the Average Total Compensation paid to our Senior
Management, adjusted to consider the addition or subtraction, as applicable, of equity award value as follows: (i) for awards
granted in the covered fiscal year which are outstanding and unvested at year end, the fair value as of the end of the applicable
year; (ii) for awards granted in prior fiscal years that are outstanding and unvested at the end of the applicable year, the amount
equal to the change in fair value as of the end of the applicable year (from the end of the prior year); (iii) for awards granted in the
applicable year that vest in the year of the grant, the fair value as of the vesting date; and (iv) for awards granted in prior years
that vest during the applicable year, the amount equal to the change in fair value as of the vesting date (from the end of the year).
To calculate the correlation between the compensation paid to our Senior Management
and Cemex, S.A.B. de C.V.’s performance for the year ended December 31, 2024, we used
the following financial and other measures: (i) cash value added (CVA); (ii) total shareholder
return; and (iii) our CO2 Emissions Component (as defined below). For the years ended
December 31, 2024, 2023 and 2022, CVA was the most significant financial measure that
we used to determine the compensation paid to our Senior Management.
Variable Compensation Plan
The Variable Compensation Plan available to our employees takes into account their
individual performance, as well as metrics that consider their business unit’s, regional and
consolidated global results as compared to the company’s specific annual target goals,
including certain health and safety and sustainability-related factors.
Since 2022, our Variable Compensation Plan includes a new CO2 Emissions Component
related to carbon reduction goals that could have an impact ranging from -10% to +10% in
the total cash payout of the annual Variable Compensation Plan. Furthermore, in March
2022, we expanded our Variable Compensation Plan to cover more than 4,400 executives.
During 2024, the variable compensation payment to employees was US$130.5 million.
Following 2023’s results, the percentage of variable compensation paid in 2024 was 198.8%
of target variable compensation.
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Our Company
Our Strategy
Financial Performance
Environmental Excellence
Stakeholder Engagement
Governance
Corporate Governance
Our Board of Directors
• Executive Committee
Ethics and Compliance
Risk and Opportunity Management
Respect for Human Rights
Appendix
Restricted Stock Incentive Plan
Our employees receive stock-based compensation generally by being allocated a specific
number of restricted equity securities as variable compensation to be vested over a four-
year period. We have 3 compensation programs that conform to our Restricted Stock
Incentive Plan: (1) the Ordinary Plan, whose annual award is calculated based on the result
of the gross annual guaranteed compensation of the participants in dollars as of May 31 of
each calendar year, times a management factor that ranges from 12% to 24%, divided by
the last 90-day average closing price in dollars of Cemex’s CPOs or ADSs, as applicable,
as of June 30 of such calendar year; (2) the Key Value Positions Plan (KVP Plan), which
includes executives in key-value positions and whose annual award is based on the result of
the variable cash compensation bonus in dollars paid in the prior year to these participants
and divided by the last 90-day average closing price in dollars of CPOs or ADSs, as
applicable, as of April 15 of each calendar year; and (3) the Performance Plan, a long-term
performance plan with compensation based on Cemex’s total shareholder return versus
peer groups and vesting occurring at the end of 3 years in a single 100% block.
In 2024, we began implementing the amendments made to our Restricted Stock Incentive
Plan in 2023, which allowed for the granting and vesting of awards in ADSs, among other
matters. All other terms and conditions of the Restricted Stock Incentive Plan remain
substantially unchanged.
Extraordinary Management Grant
Our Extraordinary Management Grant is a retention program offered at the Company’s
sole discretion to a selected number of employees that do not participate in the Ordinary
Plan, KVP, or the Performance Plan. Under the Extraordinary Management Grant, vesting
occurs at the end of 3 years in a single 100% block, at which time the resulting number of
CPOs or ADSs, as applicable, become unrestricted immediately. Since the Extraordinary
Management Grant came into effect in 2022 and there is a 3-year vesting period, as of
December 31, 2024, no CPOs have vested under the Extraordinary Management Grant.
Compensation of Cemex, S.A.B. de C.V.’s Chief Executive Officer and Senior Management
The base salary of the Chairman of our Board of Directors is 27% fixed and 73% variable. Our
executive compensation structure is reviewed every 2 years by an external firm specializing in
multinational risk management, insurance brokerage, and advisory. The total compensation
(including fixed and variable compensation) of the Chairman of our Board of Directors and
Chief Executive Officer is approved every year by the Corporate Practices and Finance
Committee of our Board of Directors, which is integrated by 3 independent Board members.
Compensation of Cemex, S.A.B. de C.V.’s Chief Executive Officer
and Senior Management(1)
Full Year 2024-Chief Executive Officer
%
Salary
17
Short-Term Performance Bonus (Cash)
18
Long-Term Performance Bonus (Restricted Stock)
37
Long-Term Performance Shares
28
100
Full Year 2024-Senior Management
%
Salary
37
Short-Term Performance Bonus (Cash)
23
Long-Term Performance Bonus (Restricted Stock)
22
Long-Term Performance Shares
18
100
1
For purposes of this table, information regarding our Senior Management does not include data pertaining to our
Chief Executive Officer.
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Contents
Our Company
Our Strategy
Financial Performance
Environmental Excellence
Stakeholder Engagement
Governance
Corporate Governance
Our Board of Directors
Executive Committee
• Ethics and Compliance
Risk and Opportunity Management
Respect for Human Rights
Appendix
Ethics and Compliance
Commitment to Compliance
At Cemex, we are committed to conducting our business in
compliance with applicable laws, regulations, and corporate
policies, controls and procedures, while upholding the highest ethical
standards. These principles are embedded in our Code of Ethics and
Business Conduct (Our Code), which employees are required to ratify
periodically. Additionally, employees must acknowledge and certify
their participation in annual training sessions and pathways for anti-
corruption and other mandatory compliance topics.
Cemex’s commitment to compliance is clearly
communicated by our company’s leadership. Our values
and ethical standards are conveyed throughout our
organization through communication campaigns, training
programs, Our Code, other corporate policies, controls
and procedures, and through internal meetings.
Additionally, one of our core values is to Act with Integrity. Act with
Integrity is a must in our day-to-day interactions, as it is crucial for
Cemex´s sustained success in fostering a workplace environment
in which our people can thrive. Our value of Acting with Integrity is
even included as one of the six core competencies that are taken
into consideration in employee performance evaluations, which are
linked to our executive variable compensation.
Global Compliance Program
Our governance best practices include robust global compliance,
audit, and training programs, as well as initiatives on ethical business
dealings and conflicts of interest, among other related matters.
Cemex’s Global Compliance Program incorporates risk analysis, due
diligence and third-party risk management, trainings, legal audits
and investigations, and global communication campaigns at all
levels of our organization.
1 Cemex’s publicly-listed subsidiaries have their own audit committees.
Training
Communication
Laws &
Regulations
Governance
Due Diligence and
Third-Party Risk
Management
Policies,
Guidelines &
Standards
Audits &
Investigation
Risk
Analysis
COMPLIANCE
Evaluate internal controls
and procedures and
oversee remediation
Implement local ethics
strategies and
investigate complaints
Define global
ethics compliance
strategy
Oversee and manage
the Global Compliance
Program
Au
di
t
Co
m
mi
tt
ee
s1
Lo
ca
l E
TH
OS
C
om
mi
tt
ee
ET
H
O
S
Gr
ou
p
Gl
ob
al
E
th
ic
s
&
Co
m
pli
an
ce
C
o
m
mi
tt
ee
A Global Compliance Program with
Multi-Disciplinary Governance Structure
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Our Company
Our Strategy
Financial Performance
Environmental Excellence
Stakeholder Engagement
Governance
Corporate Governance
Our Board of Directors
Executive Committee
• Ethics and Compliance
Risk and Opportunity Management
Respect for Human Rights
Appendix
In particular, the general Ethics and Compliance structure is as follows:
Six corporate departments work together
to ensure our ethics and compliance efforts
permeate every corner of our organization.
1.
Committees are comprised of representatives of each Compliance Organization functional area, one or two commercial operation representatives, and a Local ETHOS administrator.
2.
Participates in Local ETHOS Committees only when there is no Internal Control function directly in such business unit.
3.
Only participates in the Global Ethics & Compliance Committee, ETHOS Group, and Corporate ETHOS Committee.
ETHOS Group
22 Local ETHOS
1
Compliance Department
(Legal)
Internal Control
Enterprise Risk
Management
Human Resources
Global Enterprise
Services2
Process Assessment3
Global Ethics & Compliance1
Compliance Organization
● Develops and updates relevant internal
policies.
● Conducts training sessions and legal audits.
● Defines, coordinates, and implements due
diligence processes on third parties.
● Conducts investigations of complaints
regarding compliance-related matters and
ethics-related issues (where applicable).
● Constantly monitors changes and updates to
laws, regulations, and best practices.
Local Administrator
● Coordinates the Committee.
● Manages local ETHOSline reports and
follow-up.
● Follow-up on investigations.
● Coordinates local communication and
training.
● Responsible for implementing controls and
compliance with policies and procedures.
● Deploys an internal control model to reduce
risk exposure and the likelihood of material
deficiencies in the processes governing our
company’s operations.
● Oversees the implementation of controls and
compliance with policies.
● Conducts investigations of complaints
regarding ethics-related issues (where
applicable).
● Responsible for analyzing local and global
compliance risks.
● Performs risk oversight, including risk identi-
fication, monitoring, assessment, reporting
and mitigation.
● Follows up on risk mitigation measures.
● Conducts investigations of complaints
regarding ethics-related issues (where
applicable).
● Global HR prepares and updates, together
with other areas, our Code.
● Global HR coordinates and manages the
Local ETHOS Committees.
● Global HR is responsible for the global
administration of our ETHOSline and case
dissemination to local committees.
● Communicates and provides training on ethics-
related matters and Cemex values.
● Conducts investigations of complaints
regarding ethics-related issues (where
applicable).
● Delivers business services to Cemex opera-
tions, while complying with both our internal
and external control requirements and cor-
porate governance model.
● Performs part of the internal control respon-
sibilities such as SOX testing, following
up on remediation plans, and performing
change management tests.
● Conducts investigations of complaints
regarding ethics-related issues (where
applicable).
● Responsible for conducting internal audits
of controls and compliance with policies.
● Conducts worldwide internal audits.
● Performs SOX audit management tests.
● Conducts investigations of complaints
regarding ethics-related issues (where
applicable).
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Contents
Our Company
Our Strategy
Financial Performance
Environmental Excellence
Stakeholder Engagement
Governance
Corporate Governance
Our Board of Directors
Executive Committee
• Ethics and Compliance
Risk and Opportunity Management
Respect for Human Rights
Appendix
Main Matters Covered by Our Global Ethics
and Compliance Program
We have policies, controls, procedures,
guidelines, and processes, including due
diligence and third-party risk management
frameworks, that assist us with topics such as:
Third Parties: reviewing third parties with
whom we do business. Cemex places a high
priority on verifying that third parties we do
business with are reputable and are aligned
with our values.
Conflicts of Interest: having oversight that
employees are acting in accordance with
Cemex’s best interests.
Related Person Transactions: reviewing
related party transactions seeking to
comply with applicable regulations and
market practices, while also reporting and
evaluating any transactions with related
persons.
Anti-Corruption and Anti-Money
Laundering: we emphasize a zero-tolerance
stance on bribery and corruption, as well as
on money laundering.
International Trade Compliance and
Sanction Programs: we follow the applicable
trade control, economic sanctions, and
anti-boycott laws wherever we operate.
We incorporate sanctions screening into
our due diligence procedures to avoid any
transactions or dealings with blacklisted
individuals or entities, or those included
in sanctioned programs or based in, or
operating in, sanctioned countries.
Insider Trading: we have implemented a
framework regulating the use of Cemex’s
material non-public information in
accordance with applicable securities laws
and regulations. In addition, we issue quiet
period notices to relevant employees during
sensitive times to further reinforce our rules
around insider trading.
Antitrust Compliance: Cemex is committed to
conducting our business in accordance with
the principle of fair trade and competition in
the countries where we operate.
Data Protection and Privacy: we comply with
applicable legal requirements in relation to
personal data and the rights of data subjects.
ä To learn more about our policies, please visit our
website
Employees across all our operations
participated in one or more ethics and
compliance training sessions during 2024.
Contents
Our Company
Our Strategy
Financial Performance
Environmental Excellence
Stakeholder Engagement
Governance
Corporate Governance
Our Board of Directors
Executive Committee
• Ethics and Compliance
Risk and Opportunity Management
Respect for Human Rights
Appendix
Contents
Our Company
Our Strategy
Financial Performance
Environmental Excellence
Stakeholder Engagement
Governance
Corporate Governance
Our Board of Directors
Executive Committee
• Ethics and Compliance
Risk and Opportunity Management
Respect for Human Rights
Appendix
114
Cemex 2024 Integrated Report
Training on Business Ethics
and Compliance Principles
Cemex’s business ethics and compliance
principles are continuously reinforced with
employees through trainings, compliance
sessions, communications, and self-
reporting requirements.
In 2024, we launched a new course called
Doing What’s Right: ETHOS in Action, a
1.5-hour training course that reinforces
the values and standards of our Code of
Ethics. This training course covers issues
such as how to manage ethical questions in
supplier relations, verbal harassment, and
health and safety scenarios. Additionally,
it covers conflicts of interest, provided
tools for ethical decision-making and
manager training, and offered a general
view of our ETHOS program. Employees
are encouraged to use our ETHOSline to
confidentially address ethical concerns.
Cemex employees are required to
participate in multiple training programs on
an annual basis, which may include several
ethics and compliance training sessions, as
well as the completion of various Cemex
University pathways. These training sessions
are delivered both online and through
instructor-led formats. Ethics training is
conducted by the corporate, regional or
local Human Resources departments, while
Compliance training is led by the corporate,
regional or local Legal departments.
Depending on the course, certain sessions
are mandatory for employees in specific
departments or areas.
1
There are no duplicate counts of employees and externals within Ethics, Compliance, and Cemex
University Pathways individually. However, there may be duplicates between these three categories,
as some employees and externals are required to complete multiple training sessions from these
categories throughout the year. Employees from divested operations (Guatemala, Philippines,
Dominican Republic, and Haiti) are not included.
2 Externals include any users with an @ext.cemex.com email address, any user with non-institutional
emails, and/or third parties such as suppliers, service providers, among others.
3 Ethics topics include Cemex values, conflicts of interest, diversity and inclusion, fraud, leadership
development, non-discrimination, non-harassment, non-bullying, non-retaliation, cybersecurity,
among others.
4 Compliance topics include anti-corruption, anti-money laundering, antitrust, confidential
information, conflict minerals, contracts, data privacy, data retention, due diligence processes,
greenwashing, human rights, insider trading, labor regulations, non-retaliation, sanctions programs,
export controls, anti-boycott laws, among others.
*
For purposes of this table, this number includes 74 employees of one of our subsidiaries in Mexico
that had not been accounted for in previous years.
2024 Ethics and Compliance Related Programs
TOPIC
Cemex Employees
Externals
TOTAL (Employees + Externals)
Number of
Employees
Trained1
Total
Training
Hours
Number of
Externals
Trained1, 2
Total
Training
Hours
Number of
Individuals
Trained1
Total
Training
Hours
Ethics3
3,697
4,867
24
238
3,721
5,105
Compliance4
4,866*
7,742*
306
335
5,172
8,077
Cemex University Pathways
Anti-Corruption
1,063
797
2
2
1,065
799
Antitrust
2,856
5,712
15
30
2,871
5,742
Data Retention
477
159
19
6
496
165
Data Privacy
9
3
1
0
10
3
Doing What’s Right:
ETHOS in Action
10,617
15,926
155
233
10,772
16,158
ETHOS: Do the Right Thing Part 1
2,008
2,008
145
145
2,153
2,153
ETHOS: Do the Right Thing Part 2
2,670
2,670
123
123
2,793
2,793
Our Values
472
94.4
1
0.2
473
95
Sanctions, Export Controls and
Anti-Boycott Laws
7,460
4,973
24
16
7,484
4,989
Sexual Harassment
368
247
6
6
374
253
Takeoff (Onboarding for new hires)
3,300
825
247
61.75
3,547
887
Understanding Confidentiality
112
112
7
7
119
119
Unconscious Bias
806
2,418
57
171
863
2,589
115
Cemex 2024 Integrated Report
Contents
Our Company
Our Strategy
Financial Performance
Environmental Excellence
Stakeholder Engagement
Governance
Corporate Governance
Our Board of Directors
Executive Committee
• Ethics and Compliance
Risk and Opportunity Management
Respect for Human Rights
Appendix
Reporting and Investigations
ETHOSline is our main intake channel,
accounting for 86% of the reports
we receive. At Cemex, we prioritize
a trusted reporting system for ethics
and compliance concerns. Employees,
stakeholders, or third parties can raise
issues via our online portal, email,
phone line, or other reporting channels,
including local and global committees.
We strongly encourage reporting and
maintain a strict no-retaliation policy
for those who report in good faith.
ETHOSline is our institutional reporting
mechanism, accessible through our
website, mobile devices, or our intranet,
that is open and free for anyone to use.
This secure, confidential, and independent
platform is available 24 hours a day,
seven days a week, to both employees
and the general public, including our
third parties, to report any allegations of
misconduct anonymously or confidentially.
To secure confidentiality, ETHOSline
runs on a platform provided by NAVEX
Global, a third-party expert on ethics and
compliance reporting. Certain reports go
directly to the company’s internal audit
area, which directly reports to Cemex’s
Board of Directors’ Audit Committee,
comprised exclusively of independent
board members.
To achieve impartial, credible, fair, and
consistent results, our ETHOS governing
bodies must abide by our ETHOS manuals
which provide directives and guidelines
on how to properly manage reports,
complaints, and inquiries received
through ETHOSline, with the purpose of
guaranteeing an effective end-to-end
process. In 2024, 171 executives, who are
members of our ETHOS governing bodies,
received training on global ethical trends
and investigation procedures.
As of January 8, 2025, a total of 1,189 cases
were reported through our official channels
for the year 2024, of which approximately
86% were received through ETHOSline,
approximately 8% were received through
local committees, and less than 2% were
received through our Global Ethics and
Compliance Committee. Out of those
cases, 997 were closed by the end of 2024,
of which 35% were substantiated. As a
result of the investigations, 72 employees
were dismissed, 22 employees received
remedial training, 169 employees were
subject to disciplinary action, 11 vendors
were prohibited from working with Cemex
and 7 vendors were subjected to remedial
measures. Additionally, 23 internal
processes and policies were reviewed and
updated. We also resolved 96 inquiries
through our official channels.
Furthermore, we have a process to
safeguard whistleblowers from retaliation.
This process includes providing individual
follow-up to whistleblowers after the
submission and resolution of cases through
surveys. Additionally, for employee
reporters, we assess changes in their
employment status after reporting.
Ethics Cases
Employee Relations, Diversity
and Workplace Respect
Business Integrity
Environmental, Health & Safety
Misuse, Missappropriation of
Corporate Assets
Accounting, Auditing and
Financial Reporting
8%
7%
1%
28%
56%
In 2024, we emphasized the
importance of our ETHOSline
channel by providing employees with
transparent progress summaries
throughout the year, including,
but not limited to, investigation
outcomes. This effort reinforced our
commitment to accountability.
Additionally, in 2024, Cemex emphasized
four key topics in ethics such as non-
retaliation, how to navigate pressure in
the workplace, as well as our progress
throughout the year. We also piloted our
first ETHOS Week in our corporate offices
and Mexico regional headquarters. During
this week, we emphasized topics such as
Conflict of Interest, our reporting channels,
and gave further training to managers in
navigating their team’s ethical concerns.
This impacted 1,500 employees who
participated in the live activities and 8,500
employees who received the invitation to
participate remotely.
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Contents
Our Company
Our Strategy
Financial Performance
Environmental Excellence
Stakeholder Engagement
Governance
Corporate Governance
Our Board of Directors
Executive Committee
• Ethics and Compliance
Risk and Opportunity Management
Respect for Human Rights
Appendix
Internal Legal Audits
Our internal legal audits serve as
another means to evaluate and verify
the knowledge and compliance of
Cemex’s relevant policies by certain
key employees. The ultimate purpose
of this exercise is to identify areas of
opportunity to continuously improve and
enhance our compliance policies and
procedures. In 2024, 631 internal legal
audits were conducted, both in-person
and remotely, in 26 countries, with a
particular focus on familiarity with our
ETHOS Program, anti-corruption, anti-
money laundering, antitrust, sanctions
programs, export controls and anti-
boycott laws, insider trading, handling
Cemex’s confidential information,
data retention, data privacy, conflicts
of interest, third party due diligence,
human rights, and conflict minerals.
We conducted audits to certain key
employees in 100% of the countries
where we operate which are considered
high-risk, meeting our 2025 target
ahead of plan.
100%
operations audited in high-risk
countries, achieving our
2025 target ahead of plan
Case Reception and Administration Process
1. Global Administrator, VP OHR, VP Process Assessment and Dir HR Planning and Development.
2. Regional, Local or Corporate Committee, determined by the case dissemination protocol.
Report is
submitted
Corresponding committee
2 communicates and
implements consequences
Corresponding committee 2
agrees if the case is
sustained and defines
consequences
Global
Administrators 1
receive it and
confirm reception
Corresponding committee 2
informs to reporter that the
investigation is finalized
The case is
assigned to the
corresponding
committee 2
The report is closed
Corresponding
committee 2 runs
investigation
All reports are consolidated and managed through EthicsPoint (NAVEX)
1
6
5
2
7
4
3
8
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Cemex 2024 Integrated Report
Contents
Our Company
Our Strategy
Financial Performance
Environmental Excellence
Stakeholder Engagement
Governance
Corporate Governance
Our Board of Directors
Executive Committee
Ethics and Compliance
• Risk and Opportunity Management
Respect for Human Rights
Appendix
Risk and Opportunity
Management
Cemex operates in a rapidly changing business
environment that exposes the company to
risks and opportunities that could impact the
achievement of its strategic priorities.
Risk & Opportunity
Management System
Cemex has an Enterprise Risk Management
(“ERM”) system established throughout
the organization with global policies and
procedures designed to anticipate and
manage the main risks and opportunities that
could affect our business. Our ERM system
is a combination of bottom-up and top-
down strategies to support better-informed
decision making and risk management
strategy at all levels of the organization.
Sustainability risks and opportunities,
including those related to climate change,
are managed within the ERM system.
Risk & Opportunity Governance
Our Board of Directors, through the
corresponding Board Committees, provides
strategic guidance and oversight into
risk and opportunity management by
regularly discussing the enterprise risk and
opportunity agenda and reviewing the
effectiveness of our risk and opportunity
management system enforced by our Risk
Management Committee. Additionally,
our Board of Directors provide guidance
on industry-specific risks and sustainability
matters, including but not limited to human
rights and climate-related risks and
opportunities.
The Risk Management Committee, which
is composed of the Executive Committee
members at a global level, reviews
Cemex’s risk exposure at least twice a year
through discussion of enterprise risk and
opportunity agenda.
Additionally, our risk management
governance adheres to a three lines
of defense framework. In the first line,
process owners are responsible for risk
and opportunity management in their
day-to-day activities. Cemex’s risk
management-related areas and bodies
including but not limited to ERM, Internal
Control, Financial Risk Management,
and ETHOS and Compliance represent
the second line of defense by developing
policies, processes and controls for risk
management. Finally, in the third line
of defense, internal and external audits
evaluate the effectiveness of our risk
management processes and controls.
Risk & Opportunity
Management Process
Our risk and opportunity agenda,
developed at country, regional, and global
levels, results from a comprehensive
ERM process that identifies and manages
different types of risks, trends, emerging
concerns, and opportunities that could
impact Cemex’s strategic priorities in the
short, medium, and long term.
The ERM Process consists of five phases:
Identification - Following a bottom-up
and a top-down strategy, we employ
risk interviews, online risk surveys, risk
workshops, and external experts’ insights,
among other techniques, to identify events
that could impact Cemex in the short,
medium, or long term.
Assessment - Risks and opportunities
are evaluated and prioritized employing
qualitative and quantitative methods
to determine their potential impact and
likelihood of materialization in a specific
timeframe.
Treatment - We define a risk owner as
responsible for the treatment of a particular
risk, and ERM representatives follow up
on risk treatment actions, in some cases
acting as coordinators of ad-hoc task
forces focused to mitigate specific risks or
capitalize on identified opportunities.
Reporting - Main risks and opportunities
are integrated into the enterprise risk and
opportunity agenda, which is discussed by
senior management at global, regional,
and country levels. Relevant changes in
the status of identified risks, opportunities
and treatment measures are promptly
communicated to decision makers through
several reports.
Monitoring - We constantly monitor the
business environment in which we operate to
effectively report risks and opportunities to
decision-makers.
Identification
Assessment
Treatment
Reporting
Monitoring
Risk & Opportunity
Management Process
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Cemex 2024 Integrated Report
Contents
Our Company
Our Strategy
Financial Performance
Environmental Excellence
Stakeholder Engagement
Governance
Corporate Governance
Our Board of Directors
Executive Committee
Ethics and Compliance
• Risk and Opportunity Management
Respect for Human Rights
Appendix
Our risk and opportunity management processes adhere to best practices
from the ISO 31000, ISO 22301, and ISO 22361 standards for risk management,
business continuity and crisis management, as well as to the Business Continuity
Institute guidelines. Additionally, our ERM team includes professionals
accredited on ISO 31000 and ISO 31010 techniques, members of the Risk
Management Society, and individuals who belong to other international risk
management networks.
Risk Appetite and Tolerance
Risk appetite is the amount of risk Cemex
is willing to accept to achieve its objectives.
It considers a scale of three levels: averse,
minimum, and cautious. Cemex is adverse
to certain risk implications, such as those
relating to health and safety or compliance,
without exceptions.
Risk tolerance is the level of variation from
the risk appetite that Cemex is willing to
accept to achieve its objectives. The Board
of Directors, following recommendation
from its respective committees, is
responsible for determining Cemex’s risk
appetite and tolerance with the support of
Cemex’s Risk Management Committee.
Business Continuity & Crisis
Management Program
Our Business Continuity & Crisis
Management (“BC&CM”) program is
fundamental to the ERM system. The
BC&CM program enables a proactive and
effective risk management response during
disruptive events by assisting business
units safeguard lives, act responsibly, and
recover business promptly. In doing so, the
program aims to protect personnel, support
stakeholders, and safeguard reputation
while reducing the cost of disruptions, and
other legal and financial exposures.
The program includes training, protocols,
tools, and drills aligned with our company
values and is managed by local Rapid
Response Teams (“RRTs”) deployed
across our business units and, if required,
escalated to country or functional areas,
regional or global RRT.
RRTs are trained multidisciplinary
teams responsible for monitoring,
communicating, activating, coordinating,
and delegating the execution of event-
driven, stakeholder-driven, or process-
driven protocols, as well as timely
objective-driven decisions.
In 2024, the BC&CM program
enabled us to support business
units in monitoring, managing, and
responding to disruptive natural
events such as hurricanes and floods
in Mexico, the U.S., SCA&C, and
EMEA regions. Approximately 300
managers in 17 different countries
were trained as part of Rapid
Response Teams.
Main Strategic Risks and Mitigation Strategies
The following is a brief description of some of the principal risks and uncertainties faced by
Cemex and our corresponding mitigation strategies at the time of compilation of this report.
These risks and uncertainties are listed and prioritized based on their overall risk rating,
which is based on their estimated probability (likelihood of the risk materializing) and impact
(qualitative/quantitative consequences for Cemex if the risk materializes). As of the end of 2024,
we anticipate that new risks and uncertainties may emerge or materialize in 2025 and beyond
due to changes in markets, business dynamics, regulatory environments, and other factors.
Additionally, the risks outlined here may become of lesser or greater importance over time.
Uncertain Economic
Conditions
¥ Impact on Strategic Priorities: EG, I
Risk Appetite: Cautious
Impact on Supply Chain: Upstream,
Own Operations, Downstream
Description
Our industry, businesses, and markets
are significantly influenced by global,
regional, and national economic
conditions. The rapidly evolving global
macroeconomic landscape continues to
present uncertainties. Potential economic
risks include persistent inflationary
pressures, high interest rates, potential
for trade and supply chain disruptions,
economic slowdown, monetary policies
aimed at reducing inflation, policy
divergence among major economies,
domestic policy uncertainty related to
newly elected governments, escalation
in tariffs worldwide, increased economic
protectionism, fiscal deficits, shifts in public
spending, energy and food price shocks,
foreign exchange volatility, rising living
costs, cybersecurity threats, the unregulated
growth of cryptocurrencies and artificial
intelligence, and the impact of climate
change on economic stability and growth.
These factors can substantially alter the
expected economic growth and demand for
construction and building materials.
Potential Impact
Market contraction, lower sales, increased
input and operational cost, tightening of
financial markets, foreign exchange volatility,
among others, all of which could materially
and adversely impact our business, financial
condition, liquidity, and results of operations.
Mitigation Strategies
• Enhance EBITDA growth and margin
through strong pricing and increased
sales from Vertua products and
Urbanization Solutions.
• Deliver superior customer experience
enabled by digital technologies and
Cemex Go.
• Compete based on quality, client
segmentation, and higher value
proposition.
• Execute portfolio rebalancing strategy,
optimize our portfolio for growth,
accelerate bolt-on and margin
enhancement projects.
• Maintain strict cost discipline.
• Execute financial strategy.
¥ Impact on Strategic Priorities:
HS Health & Safety
CC Customer Centricity
EG EBITDA Growth
I
Innovation
S
Sustainability
119
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Our Company
Our Strategy
Financial Performance
Environmental Excellence
Stakeholder Engagement
Governance
Corporate Governance
Our Board of Directors
Executive Committee
Ethics and Compliance
• Risk and Opportunity Management
Respect for Human Rights
Appendix
Changes in Competitive
Landscape
¥ Impact on Strategic Objectives: CC, EG
Risk Appetite: Cautious
Impact on Supply Chain: Operations,
Downstream
Description
The markets in which we operate remain
highly competitive and are served by a variety
of established companies with recognized
brand names. New production capacities,
corporate restructurings, increasing imports,
new market entrants, rising inflation and
logistics costs, aggressive pricing strategies
by competitors, mergers and acquisitions,
and industry consolidation, among others,
have caused and may continue to cause
supply-demand imbalances and affect
the competitive landscape. Additionally,
a potential decline in demand for cement,
ready-mix concrete, aggregates, and other
materials and solutions, including urbanization
solutions, could affect market dynamics.
Potential Impact
Failure to compete effectively may affect
our price and volume strategy and the results
of our operations. We may lose substantial
market share, our sales could decline or grow
at a slower rate, the valuation of our stock
may be affected, and our pricing and margin
enhancement efforts could be hindered, any
of which could adversely impact our business,
financial condition, liquidity, and the results of
our operations.
Mitigation Strategies
• Deliver superior customer experience
enabled by digital technologies and
Cemex Go.
• Compete based on quality, client
segmentation and higher value proposition.
• Grow EBITDA through margin
enhancement, pricing discipline, and our
customer centric commercial strategy.
• Execute portfolio rebalancing strategy,
optimize our portfolio for growth,
accelerate bolt-on and margin
enhancement projects.
• Focus on production efficiency to reduce
costs and increase volumes.
Political Uncertainty
¥ Impact on Strategic Priorities: HS, CC, EG
Risk appetite: Cautious
Impact on supply chain: Upstream, Own
Operations, Downstream
Description
We are subject to the political, social, and
economic environment of the countries
where we operate. Changes in federal or
national government and the political party
in control of the legislature in any of the
countries where we operate could result in
changes to the countries’ economic, political,
or social conditions, and in changes to laws,
regulations and public policies, affecting
areas such as international trade, foreign
affairs, manufacturing and investment.
These changes may contribute to economic
uncertainty or adverse business conditions.
Globally, in 2024 the political risk was
heightened by elections in more than 60
countries; presidential, legislative, state,
and local elections took place in some of
our main markets including Mexico and the
U.S. In 2025, presidential, parliamentary,
and state elections are expected in some
of our markets, including Mexico, some
countries in the EMEA and the SCA&C
region. Additionally, we cannot exclude the
possibility of future snap elections.
Potential Impact
Political uncertainty, economic slowdown
or recession, social instability, business
disruption, increased costs, imposition of
new regulations and/or taxes, instability
of business landscape, negative impact
on governability and rule of law, public
policy uncertainty, delay to obtain or renew
permits, among other events have the
potential to materially and adversely impact
our people, business, financial condition,
liquidity, and the results of our operations.
Mitigation Strategies
• Execute tailor-made public affairs
strategy per country.
• Cooperate and engage with governments,
regulators, and legislators through
business associations.
• Implement business continuity plans and
RRTs to safeguard the lives of our people
and minimize business disruption.
• Monitor political, geopolitical, and social
events and prepare for risk scenarios.
Unexpected escalation of
a geopolitical conflict
¥ Impact on Strategic Priorities: H&S, CC, EG
Risk appetite: Cautious
Impact on supply chain: Upstream, Own
Operations, Downstream
Description
As a global company, Cemex is wary of
specific geopolitical tensions that could
have a sudden escalation, affecting the
lives of our employees and business results.
The development of previous and new
geopolitical conflicts, such as Russia’s
invasion of Ukraine, the ongoing conflicts in
the Middle East, and recent developments
involving the fall of the Syrian government
may impact our markets, business results,
and financial conditions. In addition,
tensions between China and Taiwan, as well
as maritime tensions between China and
Southeast Asian nations regarding claims in
the South China Sea are constantly evolving.
Tensions between the U.S. and some
countries could exacerbate, including trade
tensions with China, the European Union,
Canada, Mexico and other trade partners,
tensions over migration from Mexico, as
well as tensions regarding military spending
with Europe, NATO in general, concerning
Ukraine support, among others.
Potential Impact
Geopolitical conflict (especially if sudden)
could impact our people, business continuity,
and supply chains and materially and
adversely affect our people, reputation,
business, financial condition, liquidity, and
the results of our operations.
Mitigation Strategies
• Implement business continuity plans and
RRTs to safeguard the lives of our people
and minimize operational disruption.
• Monitor political, geopolitical, and social
events and prepare for risk scenarios.
• Ensure supply chain resilience.
120 Cemex 2024 Integrated Report
Contents
Our Company
Our Strategy
Financial Performance
Environmental Excellence
Stakeholder Engagement
Governance
Corporate Governance
Our Board of Directors
Executive Committee
Ethics and Compliance
• Risk and Opportunity Management
Respect for Human Rights
Appendix
Difficulties in materializing
benefits of assets divestment
and/or investment strategy
¥ Impact on Strategic Objectives: CC, EG, S, I
Risk Appetite: Cautious
Impact on Supply Chain: Upstream, Operations,
Downstream
Our portfolio rebalancing efforts are
part of our strategic priorities and are
expected to include bolt-on investments,
divestments and acquisitions in different
geographies. Our ability to materialize the
expected benefits from any investments,
divestments, acquisitions, joint ventures,
or partnerships depends on our ability
to allocate funds and integrate acquired
operations in a timely and effective
manner, among other factors. We cannot
guarantee that we will be successful in
executing divestments, allocating funds
from such divestments, identifying or
acquiring suitable assets, or that the
terms under which we may divest, acquire
or enter into joint ventures would be
favorable to us, nor that we will be able to
find suitable buyers for our divestments,
targets for our acquisitions or partners
for our joint ventures. We may also fail to
achieve any anticipated return, cost saving
or other benefit from any investment,
divestment, acquisition or joint venture.
Potential Impact
Failure to realize the expected benefits
from any investments, divestments or
acquisitions could limit our ability to meet
our strategic goals and, consequently, our
business, financial condition, liquidity, and
operational results could be materially
and adversely affected.
Mitigation Strategies
• Thorough analysis of portfolio
rebalancing strategy as well of potential
partners.
• Implement a robust due diligence
process with the participation of a
multidisciplinary team.
• Execute a detailed roadmap to divest
assets or integrate new operations and
materialize expected synergies.
• Reinforce our M&A talent.
Climate-Related Risks
¥ Impact on Strategic Priorities: HS, CC, EG, S
Risk appetite: Cautious
Impact on supply chain: Upstream,
Downstream, Operations
Description
The effects of climate change have
increased in severity and intensity
throughout the years. As with 2023, 2024
was the hottest year recorded. Additionally,
the increase in temperatures in 2024
surpassed the 1.5°C threshold set by the
Paris Agreement. This situation poses
short-, medium- and long-term climate
risks for our business environment.
Cemex assesses climate risks following
the TCFD framework and divides them
into two main categories. Physical Risks:
which refer to potential weather events
that could directly affect our assets
and operations, and Transition Risks:
which refer to the potential impacts of
moving into a low-carbon economy.
To better assess, quantify, and report climate-
related risks and opportunities under different
global average-temperature increase
scenarios, since 2023, we have engaged with
Risilience, an enterprise risk management
specialist that uses technology pioneered by
the Centre for Risk Studies at the University
of Cambridge Judge Business School. This
technology allowed us to develop a digital twin
of our operations to model impacts for both
our Physical and Transition risks.
The pilot project of 2023 focused on the
physical risks of 20 of our most relevant
facilities and locations. In 2024, we expanded
the assessment to incorporate all our key
assets from our cement, ready-mix and
aggregates business (+1,500 assets). All
scenarios taken into account are developed
under five emission scenarios and Shared
Socioeconomic Pathways (“SSP”) defined
by the Intergovernmental Panel on Climate
Change (IPCC): Paris Ambition (SSP1-1.9),
Paris Agreement (SSP1-2.6), Stated policy
(SSP2- 4.5), Current policy (SSP3-7.0), and
No policy (SSP5-8.5). Risks are measured and
assessed considering short-, medium- and
long-term time horizons.
These pathways define possible future
emission scenarios with different narratives
that explore how society, demographics,
and economics will affect greenhouse gas
emissions, and resultant radiative forcing
and temperature rise across the globe.
Scenarios are derived from the Shared
Socioeconomic Pathways (SSPs) combined
with the Representative Concentration
Pathways (RCPs), which form the basis of
the Sixth Assessment Report (AR6) from
the Intergovernmental Panel on Climate
Change (IPCC).
ä For detailed results on our Climate-Related risks
and opportunities assessment, please refer to our
TCFD report on pages 252-269 of this report
Transition Risks:
We have identified 4 transition risk areas
which apply to Cemex and our industry as
a whole.
• Policy
• Technology
• Market
• Reputation
Policy
Description
Cemex is subject to a growing number of
CO2 regulations aiming to incentivize CO2
emissions reduction. In jurisdictions with
carbon regulations in place, such regulations
often manage CO2 pricing in the form
of cap-and-trade systems, particularly
in Europe and some states in the U.S. In
other geographies, such as Mexico, new
or stricter CO2 regulations are expected to
come into effect in the near future, under
discussion or development, and could imply
a higher CO2 cost for Cemex in the short-
and medium-term, for example, in the
form of emission trading systems or CO2
taxes. Unclear CO2 regulations could result
in double regulation. For example, an entity
may be subject to a cap-and-trade scheme
as well as an emissions tax, which may have
inconsistent or overlapping policy objectives.
Likewise, the unequal application of a CO2
pricing mechanism between local and
foreign producers could cause competitive
disadvantages. On the other hand,
government policies that incentivize the use
of alternative technologies to reduce CO2
emissions (e.g., circular economy practices)
are not advancing at the required pace or at
the same pace in all geographies in which we
operate, which may slow down the reduction
of CO2 emissions.
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Contents
Our Company
Our Strategy
Financial Performance
Environmental Excellence
Stakeholder Engagement
Governance
Corporate Governance
Our Board of Directors
Executive Committee
Ethics and Compliance
• Risk and Opportunity Management
Respect for Human Rights
Appendix
Potential Impact
Increased costs resulting from regulation,
pricing pressure exerted by imports from
countries with less stringent CO2 regulations,
substantial penalties in case of non-
compliance with laws and regulations, and
non-achievement of our carbon emission
reduction or other climate-related targets
may all have a material adverse effect on
our business, financial condition, and results
of operations.
Technology
Description
Development and scale up of technologies
are essential to reduce CO2 emissions to meet
our 2050 Net-Zero CO2 emissions across the
value chain by 2050, certain sustainability-
related key performance indicators included
in our financing arrangements, and the limits
of any cap-and-trade systems to which
Cemex is subject. Some of the technologies to
reduce CO2 emissions still need to be proved
in terms of technical feasibility, viability, and
scalability. In addition, the development of
breakthrough technologies requires intensive
capital expenditures. The process to secure
government funding is highly competitive
and economic or regulatory incentives to
develop and prove these technologies are
not available in all geographies. The failure
to effectively select, develop and roll-out, or/
and invest in, any necessary technologies,
as well as the lack or late implementation of
these new technologies, could lead Cemex
to fail in achieving its 2050 Net-Zero CO2
emissions goal and the limits of any cap-and-
trade systems to which Cemex is subject, as
well as cause Cemex to fail to comply with
the sustainability-related key performance
indicators contained in its financial
arrangements, and meet stakeholders
expectations. Furthermore, deficient or
delayed development or scale up of certain
sustainability-related technologies may
limit the range of eligible projects to which
the proceeds of certain financings may be
destined and/or may cause the application of
proceeds to be less effective than originally
anticipated. We have established aggressive
sustainability/climate change related goals
and programs, which may increase our
operational costs. Additionally, failure to
meet these goals could damage our business
and reputation, decrease the demand for
our goods and services, and/or increase our
cost of capital under our sustainability-linked
financing agreements.
Potential Impact
High capital investment in research and
development, and the deployment of new
and alternative technologies. Potential
write-offs and early retirement of existing
assets, deficient capital allocation, reduced
demand for our products and services,
substantial penalties and/or an increase
in our cost of capital, reputation damage,
stakeholder activism and a material adverse
effect on our business, financial condition,
and results of operations.
Markets
Description
More stringent construction and energy
efficiency standards are likely to foster
the development of new lower-carbon
products and construction solutions. As
consumer expectations continue to evolve,
there is a risk that Cemex does not meet
future market expectations in the form of
new or alternative lower-carbon products
and solutions. On the other side, the lack
of regulatory incentives or regulations
promoting the use of lower carbon products
could fail to incentivize their adoption as
customers could not be willing to pay the
cost resulting from the necessary investment
to transition to a low-carbon industry which
could also compromise our roadmap to
net zero by 2050. As industry participants
embark on decarbonizing strategies, the
competition for raw materials with lower
carbon footprint increases, which exerts
pressure on their price and availability.
Potential Impact
Reduced demand for our products and
solutions, increased production costs due
to more competition for lower carbon or
alternative raw materials, increased capital
expenses to adjust our production processes
and technology to incorporate lower
carbon or alternative raw materials, and/
or renewable energy, reputation damage,
stakeholder activism, among other things,
which could have a material adverse effect
on our business, financial condition, liquidity,
and results of operations.
Reputation
Description
According to the GCCA, the cement industry
is the source of about 5% - 8% of the world’s
CO2 emissions. Cement could be perceived
as a relevant contributor to CO2 global
emissions. Negative company reputation
or stigmatization of our industry related to
CO2 and stakeholder activism could have
a negative impact on our stakeholders’
preferences regarding Cemex, which in turn
could potentially affect the demand for our
products and solutions, our ability to attract
and retain talent, capital availability or cost,
and business continuity.
Potential Impact
Negative disposition towards Cemex and the
cement industry could reduce the demand
for our products and solutions, difficult our
ability to attract and retain talent, reduce
capital availability and/or increase our cost
of capital, increase stakeholder’s activism,
and disrupt our business operations. All
these events could have a material adverse
effect on our business, financial condition,
liquidity, and results of operations.
Mitigation Strategies for the outlined
Transition Risks (Policy, Technology,
Markets and Reputation)
• Participate actively in decarbonizing the
construction materials industry through
the definition of ambitious CO2 emission
reduction targets and the execution of our
Future in Action program.
Physical risks (acute and chronic)
Description
Climate change will intensify the severity
and frequency of natural disasters already
experienced in most geographies and bring
new environmental changes that will impact
people’s lives and economic activities. Our
operations and business are exposed to the
event-driven acute physical risks and the
chronic physical risks associated with longer-
term shifts in climate patterns.
The Risilience analysis highlighted the acute
and chronic physical risks that could impact
our business considering potential future
climate scenarios (the range of emission
pathways highlighted previously) using
Risilience’s Climate Hazard Atlas. This Atlas
presents a suite of global maps to assess
the likelihood of the occurrence of climate-
related extreme events, including heatwaves,
freeze events, droughts, coastal, flash and
riverine floods, temperate and tropical
windstorms. These relate to extreme weather
events as well as long-term environmental
changes. The Climate Hazard Atlas defines
the likelihood or frequency of extreme
weather events for the present day using
recent historical observations, as well as
various climate models to project until 2050.
For each type of hazard, individual ‘events’
are specified based on a set of defined
criteria and thresholds, which represent
various magnitudes of the hazard.
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Contents
Our Company
Our Strategy
Financial Performance
Environmental Excellence
Stakeholder Engagement
Governance
Corporate Governance
Our Board of Directors
Executive Committee
Ethics and Compliance
• Risk and Opportunity Management
Respect for Human Rights
Appendix
To better understand our exposure to
Physical risks, a Key Facility Disruption Risk
model was used, which quantifies the oper-
ational disruption and damage to physical
assets and critical locations according to the
forecast changes in environmental condi-
tions in the different geographies in which
we operate.
Results suggest that drought/water stress
and heatwaves represent the most material
risks to revenue across our operations and
have the highest increase in probability due to
climate change. Additional findings indicate
that flash floods and riverine floods have
the higher potential to impact and damage
our assets, mainly in the US, Mexico and the
Caribbean. Likewise, some of our operations
in Mexico, US and Europe could be exposed to
water stress due to their geographic location.
Potential Impact
Asset damage, business disruption, loss of
sales, cost increase and even reputation
damage or possible litigation. The decrease
in sales volume caused by physical hazard
events is usually counterbalanced by the
increase in the demand for our products and
solutions during the reconstruction phases.
Chronic physical risks could result also in
supply chain disruptions as it was the case of
shipping capacity restrictions in the Panama
Canal due to low water levels. Supply chain
disruptions could have a negative impact
on the product delivery time and the cost to
serve our markets.
Mitigation strategies
• Identify, quantify and manage climate
risks through a comprehensive risk
management strategy.
• Adhere to crisis management and
business continuity plans in place.
• Review and adjust insurance policies to
cover the most exposed assets as much
as possible.
• Set 2030 targets on freshwater
withdrawal reduction by shifting to
non-freshwater and implement Water
Action Plans (“WAPs”) which include a
customized set of response actions to
mitigate water risks.
Regulatory and Compliance
Requirements, including
sustainability regulations
¥ Impact on Strategic Priorities: HS, CC, EG, S
Risk appetite: Averse
Impact on supply chain: Upstream,
Own Operations, Downstream
Description
As a global company, Cemex is subject to
the laws and regulations of the countries
where we operate. Some of these laws
and regulations include, but are not limited
to, areas such as anti-corruption, anti-
bribery, anti-money laundering, antitrust,
anti-boycott, economic sanctions, trade
embargoes, export controls, information
security, mining, transportation, taxes,
among others. Furthermore, we are involved
in various significant regulatory matters and
legal proceedings, including tax, antitrust
and other proceedings which depend on
the application and interpretation of law by
local and national government authorities.
For more information, please refer to the
Regulatory Matters and Legal Proceedings
section of our annual report on Form 20-F.
We are also subject to an increasing
number of environmental (e.g., CO2, air
emissions, circular economy and waste
management, biodiversity, water), social
(e.g. labor, human rights, diversity) and
governance laws and regulations in each
of the jurisdictions in which we operate.
Sustainability performance, in general,
is also under increased scrutiny from
stakeholders and society at large. The lack
of clarity of some of these new legislative
developments, as well as inconsistent and
conflicting frameworks and standards may
result in compliance challenges, increased
operational costs, and potential legal or
reputational risks for our business.
Potential Impact
Any non-compliance or non-adherence
to laws and regulations, or any significant
delay in adapting to changes may result
in potential cost increases, investigations,
fines, and penalties, restrictions on
production facilities, among others, which
could have a material adverse effect on our
reputation, business, financial condition,
liquidity, and results of operations.
Additionally, these laws and regulations
expose Cemex to the risk of reputation
damage, loss of customers, difficulty in
retaining and attracting talent, social
activism, new mandatory operational and
disclosure requirements, among other things.
Mitigation Strategies
• Monitor and comply with applicable local,
state, and federal laws and regulations.
• Execute Cemex’s sustainability strategy
which includes its Future in Action Program.
• Monitor and comply with sustainability
laws and regulations, seeking adherence
to the highest sustainability standards and
practices.
• Enhance and enforce our Ethics and
Compliance program, which addresses
antitrust, antibribery, health and safety,
international sanctions, human rights,
confidentiality, conflicts of interest,
financial controls, and third-party risk
management, among other matters.
• Improve internal controls through
continuous internal audits and other
methods.
• Continue the operation of our
sustainability-related committees:
Global ESG Committee, Regional and
Country Sustainability Committees,
Ethos Committee, Human Rights Global
Committee, among others.
• Board oversight and guidance on
sustainability risk and opportunity
management through the discussion of
the ESG Risk & Opportunity Agenda by
the Board’s Sustainability, Climate Action,
Social Impact, and Diversity Committee.
• Set accounting reserves for legal
proceedings when it is probable that they
will be adversely resolved.
Financial Risks
¥ Impact on Strategic Priorities: EG, CC, I
Risk appetite: Minimum
Impact on supply chain: Upstream,
Own Operations, Downstream
Description
As a global company we are exposed to
financial risks, including but not limited
to failure to refinance debt and financial
obligations, failure to comply with maturities,
foreign exchange volatility, changing
interest rates, debt and other financial
obligations servicing failure, liquidity
conditions, refinancing terms, credit ratings,
counterparty risks, debt level adjustments,
and possible non-compliance with covenants
and restrictions, among others.
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Contents
Our Company
Our Strategy
Financial Performance
Environmental Excellence
Stakeholder Engagement
Governance
Corporate Governance
Our Board of Directors
Executive Committee
Ethics and Compliance
• Risk and Opportunity Management
Respect for Human Rights
Appendix
Potential Impact
All these risks have the capacity to affect,
among other things, our capacity to
generate cash to service our debt and to
comply with covenants and restrictions,
our outstanding indebtedness, the cost
to service our debt, our liquidity, our
consolidated reported results, our credit
rating, our solvency, our ability to satisfy
our commercial obligations and our
capacity to access funds or capital and
therefore execute some of our strategic
priorities, among others. All these events
could materially and adversely affect our
business, financial condition, liquidity, and
results of operations.
Mitigation Strategies
• Strengthen our capital structure.
• Execute liability management strategy;
extend and diversify funding sources.
• Continue with our leverage reduction.
• Maintain a strong liquidity profile.
• Implement foreign exchange, interest rate
and energy hedging strategy.
Energy Price Volatility
Including Alternative Fuels
¥ Impact on Strategic Priorities: CC, EG, S
Risk appetite: Minimum
Impact on supply chain: Upstream,
Own Operations, Downstream
Description
Electricity and fuel costs represent an
important part of our overall production
cost structure. The price and availability of
electricity and fuels are generally subject
to market volatility and, therefore, may
impact our costs. We are exposed to
potentially higher energy prices and fuel
costs (e.g., coal, gas, and fuel oil prices)
and, in some regions, uncertain energy
supply availability due to several factors,
including, but not limited to a slowdown of
the global economy, geopolitical tensions,
escalating conflict and wars. Governments
in some countries where we operate are
in the process of modifying certain energy
market regulations, imposing tariffs,
reducing energy subsidies, introducing
clean energy obligations, or imposing new
taxes or policies. Our commitment to the
energy transition by increasing the use of
cleaner energy sources, including renewable
electricity and alternative fuels, may limit
our flexibility to use established energy
sources and fuels that may be more cost-
effective and could require more capital
expenditure and investment than planned.
Conversely, if our efforts to increase the use
of alternative fuels are unsuccessful, due
to their limited availability, price volatility,
reduced availability of long-term contracts,
or otherwise, we would be required to
use traditional fuels, which may increase
our energy and fuel costs. In addition,
transition to a net-zero economy has
increased the competition for renewable
electricity projects. All these factors may
result in difficulties to achieve the targets
we have set in our Future in Action program
and certain key performance indicators
provided for in our sustainability-linked
financing arrangements, which, among
other adverse effects, would damage our
reputation and increase our cost of capital.
This may result in a material adverse effect
on our business, financial condition, liquidity,
and results of operations.
Potential Impact
Increased production costs, energy supply
disruption causing reduced materials
production, increases in capital spending
and investment, delay in achieving clean
energy goals, and impact on operating
results. Our pricing strategy aims to transfer
energy cost increases to our customers,
but if the strategy does not penetrate at
the rate we expect, it has the potential to
impact our sales volumes. If we are unable
to comply with sustainability-linked financing
arrangements, it can result in damage to our
reputation and increase our cost of capital.
All of this could have a material adverse
effect on our business, financial condition,
liquidity, and results of operations.
Mitigation Strategies
• Negotiate energy contracts to provide
certainty on future energy cost, including
entering into long-term renewable supply
contracts for energy and fuels that
provide cleaner energy.
• Increase use of alternative fuels.
• Develop processes and products to
reduce heat consumption in our kilns and
optimize power consumption.
• Execute hedging for coal, diesel,
electricity, and natural gas in the financial
markets to reduce volatility.
Lower Availability or
Increased Cost of Raw
Materials
¥ Impact on Strategic Priorities: CC, EG, S
Risk appetite: Minimum
Impact on supply chain: Upstream,
Own Operations, Downstream
Description
We still use certain by-products of industrial
processes produced by third parties, such
as pet-coke, fly ash, slag, and synthetic
gypsum, among others, as well as natural
resources such as aggregates, limestone,
water, and other materials. While we are
not dependent on any supplier and we
actively seek to secure the supply of our
required materials, products, and resources
through long-term renewable contracts
and framework agreements, short-term
contracts are entered into in certain
countries where we operate to guarantee
our required supply of materials.
Potential Impact
Should existing suppliers cease operations, or
reduce, or eliminate the production of these
by-products and materials, or should any
suppliers for any reason not be able to deliver
contractual quantities to us, or should laws
and/or regulations in any region or country
limit access to these materials, our sourcing
costs could increase significantly or require
us to find alternative sources. These type of
events could have a material adverse effect
on our business, financial condition, and
results of operations. In particular, scarcity
and quality of natural resources (such as
water and aggregates reserves) in some of
the countries where we operate could have
a material adverse effect on our operations,
costs and results of operations.
Mitigation Strategies
• Enter long-term renewable contracts for
the supply of the required materials.
• Monitor global aggregates, limestone,
and natural resources reserves, identify
critical levels, and secure reserves in
attractive markets.
• Monitor and anticipate permitting
processes and regulations.
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Contents
Our Company
Our Strategy
Financial Performance
Environmental Excellence
Stakeholder Engagement
Governance
Corporate Governance
Our Board of Directors
Executive Committee
Ethics and Compliance
• Risk and Opportunity Management
Respect for Human Rights
Appendix
Cyberthreats and
Information Technology
Risks
¥ Impact on Strategic Objectives: CC, EG, I
Risk Appetite: Averse
Impact on Supply Chain: Upstream,
Downstream, Operations
Description
We increasingly rely on a variety of
information technology, cloud services, and
automated operating systems to manage
and support our operations. Our systems
and technologies (as well as those provided
by third parties), including but not limited
to our platforms such as Cemex Go, may
be vulnerable to intrusion, disruption, or
damage caused by circumstances beyond
our control, e.g., physical or electronic
break-ins, power outages, natural disasters,
computer system or network failures,
security breaches, computer viruses and
cyber-attacks, including malicious codes,
worms, ransomware, phishing, denial of
service attacks and unauthorized access.
In 2024, there was a global rise in security
threats, including phishing, social engineering,
smishing, ransomware campaigns, AI-
powered attacks, and supply chain attacks.
While we have invested in data protection
and information security measures to
mitigate these risks, we cannot guarantee
that such efforts will prevent system failures
or security breaches, which could materially
and adversely affect our financial condition,
results of operations, and liquidity.
Furthermore, as we continue to advance our
digital transformation initiatives, we expect
a deeper integration of digital technologies
into our operations. However, these
integration efforts and the engagement of
additional technology service providers and
systems in our operations could increase
our exposure to these risks. The ongoing
digitalization of global supply chains
introduces new risks, given their growing
reliance on technology and third parties.
Potential Impact
Some cybersecurity incidents could cause
operational disruptions, failure to serve our
clients, leaks of information, among others.
These events could negatively impact our
financials and reputation, and/or make us
subject to regulatory fines that would damage
our relationships with employees, customers,
and suppliers. All of this could have a material
adverse impact on our business, financial
condition, and results of operations.
Mitigation Strategies
• Adhere to Information Security Policies
and implement and enhance cybersecurity
controls and processes.
• Increase awareness on cybersecurity culture
among employees and third parties through
incident response playbooks and drills.
• Continuously enhance insurance coverage
for cybersecurity incidents.
• Renew, modify, and upgrade required
systems and technologies.
• Renew the ISO 27001 certification on
production plants for information security
management.
Operational Disruption Due
to Different Interests from
Stakeholders
¥ Impact on Strategic Priorities: HS, CC, EG
Risk appetite: Cautious
Impact on supply chain: Upstream,
Own Operations, Downstream
Description
Although we make significant efforts to
maintain good long-term relationships with
the communities, governments, and other
stakeholders in the geographies where
we operate, there can be no assurance
that the mentioned stakeholders will not
have different, or at times conflicting,
perceptions, interpretations, interests or
objectives from ours. These conflicting
points of view have been more common with
respect to environmental and social issues.
Despite agreement on the importance of
addressing climate change, our industry
is usually perceived as more polluting
than others. Human rights are also a
source of potential allegations. Different
interests from stakeholders have led them
to implement public actions, protests or
campaigns against our industry or company.
Potential Impact
Stakeholders with different or conflicting
interests could result in delays in legal or
administrative proceedings, stakeholder
activism, negative media coverage, asset
damage, business disruption as well as in
requests for the government to revoke or
deny our concessions, licenses, or other
permits. Any such events could impact our
people, could affect our business continuity
or reputation, or could have a material
adverse impact on our business, financial
condition, and results of operations.
Mitigation Strategies
• Implement proactive stakeholder
engagement plans.
• Cooperate and engage with governments,
regulators, and legislators through
business associations to focus on
providing solutions for key government
priorities (e.g. Regenera, our global waste
management business, as a solution for
contributing to a more circular society).
• Implement Business Continuity and Crisis
Management plans to safeguard the lives
of our people and minimize operational
disruption.
• Publicize our grievance mechanisms to
increase stakeholder awareness and
accessibility.
Health and Safety Risks
¥ Impact on Strategic Objectives: HS, EG, S
Risk Appetite: Averse
Impact on Supply Chain: Downstream, Operations
Description
Activities in our business that are not executed
responsibly might be dangerous and lead
to injury, illness, or even fatality to our
employees, third parties, and contractors. In a
similar way, accidents might end up damaging
our people, property or communities.
Potential Impact
Any given accident that occurs within our
facilities or as a result of our operations,
could cause both operative disruptions
and/or legal and regulatory consequences.
Additionally, we may also be required to
assume costs and liabilities to compensate
affected personnel or repair or replace
damaged property. This could materially
and adversely affect our reputation,
business, liquidity, and results of operations.
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Contents
Our Company
Our Strategy
Financial Performance
Environmental Excellence
Stakeholder Engagement
Governance
Corporate Governance
Our Board of Directors
Executive Committee
Ethics and Compliance
• Risk and Opportunity Management
Respect for Human Rights
Appendix
Mitigation Strategies
• Aim for zero recordable injuries, job-
related illnesses, preventable vehicular
incidents, and environmental events.
• Prioritize the safety of our people
(employees, contractors, and the
communities).
• Reinforce Health and Safety Protocols
(Behaviors that Save Lives, Pandemic
Endurance & Rapid Response Teams).
• Adhere to high health and safety
standards, monitor, prepare, and comply
with health and safety recommendations.
Labor Relations, Talent
Attraction and Retention
¥ Impact on Strategic Priorities: HS, CC, EG, I, S
Risk appetite: Cautious
Impact on supply chain: Own Operations
Description
Attracting and retaining a specialized
workforce, effectively planning leadership
succession, and evolving to adapt to
changing workplace demands and
environments across our operations are
key elements to ensure we achieve our
strategic priorities. Labor shortages,
tight labor markets, wage inflation, labor
activism and unrest, failure to maintain
satisfactory labor relations and changes in
work environment expectations are some
sources of risk that could negatively impact
our talent management and labor-related
efforts. As digitalization and innovation
rapidly advance and new generations enter
the workplace, the construction and building
materials industry could be perceived as less
attractive than other industries or require
talent with specific technical skills that are
hard to acquire for key positions.
Potential Impact
Failure to effectively attract and retain
talent, labor activism and unrest, and failure
to maintain satisfactory labor relations
could materially and adversely impact
our business, financial performance and
result of operations and compromise the
achievement of our strategic priorities.
Mitigation Strategies
• Evolve Cemex’s culture, policies, and
procedures to new work environments.
• Enhance our talent management process.
• Continue improving key initiatives (e.g.
Workforce Experience and Rewards
and Incentives Programs) seeking the
attraction and retention of target groups.
• Proactively renew collective bargaining
agreements.
Emergence of a Pandemic,
Epidemic, or any Other
Public Health Threat
¥ Impact on Strategic objectives: HS, CC, EG
Risk Appetite: Minimum
Impact on supply chain: Upstream,
Downstream, Operations
Description
The emergence of a pandemic or epidemic,
or any other public health threat that is
easily spread, severe, difficult to contain,
and long-lasting, may affect our business
environment as well as the lives and
health of our people and members of the
communities where we operate.
Potential Impact
Some of a pandemic’s effects include, but
are not limited to loss of life, temporary
restrictions on production facilities, labor
shortages, supply chain disruptions,
inflationary costs, slowdown in economic
and construction activity, financial markets
volatility, among others. These effects may
have a material adverse impact on our
business, financial condition, liquidity, and
results of operations.
Mitigation Strategies
• Adhere to our health and safety
protocols to protect the health and
safety of our people.
• Implement Business Continuity and
Crisis Management plans to safeguard
the lives of our people and minimize
operational disruption.
• Enhance customer experience through
proven e-commerce platforms and
distribution network.
• Aid members of the communities where
we operate in dealing with the health
threat.
Industry Disruptions by
Emerging Technologies or
Alternative Solutions
¥ Impact on Strategic Objectives: CC, EG, I
Risk Appetite: Cautious
Impact on supply chain: Upstream,
Downstream, Operations
Description
Our building materials industry is in constant
evolution as new technologies, processes,
materials, players, and solutions are
introduced at different stages of the value
chain aiming to increase its efficiency. While
we have developed or are developing new
technologies, businesses, partnerships,
materials, products and solutions, through our
Research & Development, Cemex Ventures,
Urbanization Solutions, and Sustainability
operations, other industry innovations from
internal or external players, including but not
limited to digitalization, AI, automatization,
new construction methods, new products,
product substitutes, materials, manufacturing
processes, sustainable practices, or other
emerging technologies or solutions could
potentially impact the industry’s competitive
landscape, the building materials value chain,
and our capacity to compete.
Potential Impact
Failure to timely identify industry innovations
or disruptors and adapt our business model
to effectively adopt new technology and
resources required to stay on top of our
industry’s evolution could affect our capacity
to compete and have a material adverse
effect on our business, financial condition,
liquidity, and results of operations.
Mitigation Strategies
• Continue to improve our R&D strategy
related to new materials, products,
technologies and sustainability.
• Detect, develop, and commercialize
disruptive, revolutionary, and sustainable
construction projects through Cemex
Ventures.
• Promote internal and external innovation
through our Smart Innovation Program
and partnership with innovative and
sustainable companies.
• Deliver superior customer experience
enabled by digital technologies (e.g.
Cemex Go)
• Enhance our digital technology strategy
(e.g. Digital Commercial Strategy, CX 4.0
Operations, Working Smarter).
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Contents
Our Company
Our Strategy
Financial Performance
Environmental Excellence
Stakeholder Engagement
Governance
Corporate Governance
Our Board of Directors
Executive Committee
Ethics and Compliance
• Risk and Opportunity Management
Respect for Human Rights
Appendix
Just Transition: Addressing
the Potential Impacts
from our Decarbonization
Activities
¥ Impact on Strategic Priorities: HS, EG, S
Risk appetite: Cautious
Impact on supply chain: Upstream,
Own Operations, Downstream
Description
As we transition towards a low-carbon
economy, it is important to identify and
address the impacts arising from our
activities in the shift toward net-zero. The
actions required for a just transition involve
adapting the economy in a fair and inclusive
way, creating decent work opportunities,
and leaving no one behind.
To achieve this, we aim to continue
implementing our sustainability practices,
proactively identify and manage the impacts
related to our net-zero transition, improve
engagement with stakeholders affected
by our transition activities, and develop
transition plans that mitigate negative
impacts and maximize positive ones.
Key focus areas in our transition plans include
creating and ensuring access to decent
jobs, retraining, reskilling, and upskilling.
However, we face significant obstacles,
such as a lack of regulatory clarity marked
by inconsistencies and frequent changes.
Small and medium-sized enterprises (SMEs)
within our value chain may not be ready to
allocate the necessary resources to ensure
a just transition. Geographic and sectoral
inequalities present another challenge, as not
all regions and economic sectors are equally
prepared for the transition.
Potential Impact
If we fail to integrate the Just Transition
guidelines into our climate change strategy,
we risk non-compliance with standards and
requirements, which may result in potential
legal or reputational risks for our business, as
well on adverse impacts on our sustainability
performance. Additionally, the growing
attention from ratings agencies assessing
companies’ adherence to Just Transition
principles highlights the importance of these
commitments. Their evaluations, which focus
on engagement efforts and action plans, are
crucial in shaping our market positioning and
transparency.
In leading sustainability markets,
adopting and ensuring a Just Transition
is essential for securing funds and
grants for decarbonization technology
projects. Without appropriate measures
and incentives from policymakers and
governments, the adoption of sustainable
practices across the value chain could
be significantly delayed. This delay
would particularly affect SMEs, whose
participation is critical to achieving the Paris
Agreement goals and aligning with Just
Transition guidelines that seek for a fair and
inclusive transition for all.
Neglecting sustainable practices within our
value chain may create skill and capacity
gaps necessary for key activities in our net-
zero transition. Such oversight could also
forfeit opportunities to generate positive
outcomes, such as promoting quality and
green job creation.
Treatment Strategies
• Collaborate with relevant organizations
such as BSR and the UN Global Compact
to incorporate Just Transition principles
into our commitments and processes.
• Develop an understanding of what a
Just Transition means for Cemex and
raise awareness among internal and
external stakeholders through a clear
commitment and positioning.
• Integrate the concept of a Just Transition
into stakeholder engagement processes,
impacts, risks and opportunities
identification and management, ensuring
they inform the development of our
transition plans.
• Develop transition plans with a clear
focus on creating green and quality
jobs, reskilling and upskilling for our key
stakeholders.
• Inform SMEs about integrating sustainable
practices that align with the requirements
and standards for participating in a low-
carbon economy, such as through our
UNGC supply chain program.
Inadequate implementation
and use of AI
¥ Impact on Strategic Objectives: CC, EG, I
Risk Appetite: Cautious
Impact on Supply Chain: Upstream,
Downstream, Operations
Description
While artificial intelligence (AI) technology
has been around us and evolving for
decades, there has been a rapid expansion
in what AI systems can do and, in recent
years, generative AI is being woven more
and more into our everyday lives and
shaping the future across nearly every
industry. AI technology advancements are
changing how companies operate and
how humans interact; from chatbots to
engage with customers and employees
in human-sounding ways, or models that
optimize how marketing, controllership,
legal, manufacturing, supply chain and
logistics processes are managed, to enable
researchers and developers to better
understand large amounts of data and
ease complex engineering development
processes. These advancements will likely
enhance the overall business processes
efficiency. However, risks remain, as the
rapid evolution and widespread adoption
of these systems surpass the development
of regulatory frameworks and standards
needed for secure implementation.
Governments are still discussing and
developing these regulatory frameworks,
and companies and organizations are in the
process of implementing them.
Risks arise in several ways, and probably,
as of the date of this report, some of
them remain unknown. If the data from
AI technology is of low quality, biased,
unrepresentative or inappropriate, it creates
risks to the accuracy and reliability of model
outputs, which may result in reputation risks.
The use of AI can also expose us to
compliance and legal risks with respect to
existing laws and regulations, particularly
regarding data protection and privacy.
Public institutions must ensure the adequate
implementation of regulations as they are
key for the safe and effective deployment of
AI technologies across all industries. Failure
to do so could undermine fair competition
and affect intellectual property rights.
Large amounts of data required to train AI
applications can also create information
security risks. Web-based AI applications
substantially increase the risks of employees
AI
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Our Company
Our Strategy
Financial Performance
Environmental Excellence
Stakeholder Engagement
Governance
Corporate Governance
Our Board of Directors
Executive Committee
Ethics and Compliance
• Risk and Opportunity Management
Respect for Human Rights
Appendix
submitting sensitive or proprietary data.
Cyberthreats by adversarial actors to access
AI models or alter data could have negative
business consequences as conventional
cybersecurity controls do not adequately
address these new forms of AI risk.
Misuse of AI models represent another risk.
AI models could be misused to create and
spread falsified information and influence
electoral campaigns, stoke division,
exacerbate polarization, and create
social chaos which in turn could endanger
political systems, economic markets and
global security and stability. Uncertainty
and risk increase as breakthroughs in AI
outpace governance efforts.
Potential Impact
As AI continues to improve quickly and
becomes exponentially more capable,
failure from policy makers, governments,
authorities, and companies to develop
and implement adequate frameworks,
standards, procedures, and controls to
integrate it in a secure and controlled
environment, could create numerous
potential risks, including data privacy,
compliance, legal, ethical, reputation
and security risks. Misuse of AI could also
have a negative impact on the political,
economic and social environments.
All these events could have negative
economic, legal, and reputation
consequences and in turn materially and
adversely impact our business, financial
performance and results of operations.
Treatment Strategies
• Enable the safe and controlled use of AI
platforms and continuous training for
employees
• Monitor AI technology developments and
comply with regulatory frameworks.
• Foster partnerships and collaborations
and investing in AI research and
development.
• Strengthen risk prevention and
cybersecurity culture among employees
and third parties.
Geoeconomic confrontation
could impact growth
prospects and reshape
global business landscape
¥ Impact on Strategic Objectives: EG, S, I
Risk Appetite: Cautious
Impact on Supply Chain: Upstream,
Own Operations, Downstream
Description:
Geopolitical fragmentation, increasing
confrontation between global powers,
economic pressures and autonomy as
governments’ main priorities (e.g. U.S.,
China, European Union members) could
lead to the use of economic warfare and
increasing state intervention (e.g. end of
trade agreements, protectionist measures
including trade tariffs, limits in the use of
financial system, economic sanctions, export
controls, migration constraints) as levers to
build self-sufficiency and sovereignty from
rival powers, but could also be deployed
offensively to become more competitive
than other countries. Protectionist measures
could highlight security vulnerabilities
posed by economic, trade, financial,
technological and labor interdependence
between globally integrated economies.
The deployment of economic policies to
meet geopolitical goals risks a vicious and
escalating cycle of distrust and decoupling,
resulting in a minor growth regarding
resilience and productivity.
Increasing governments’ confrontation
could reshape, deprioritize or weaken
international agreements or cooperation
in a sustainability agenda or in multilateral
trade agreements, creating a more complex
and uncertain business landscape.
Potential Impact
Heightened geoeconomic wars or
confrontation with the use of protectionist
measures could lead to increased prices,
inflation levels and cost of living, as well as
to reduced prospects for economic growth.
Protectionist measures and barriers to
global trade could also have a negative
impact on labor availability, supply chains
and even on innovation processes (e.g. due
to the lack of technology, manpower or
components needed). Private companies
could lose confidence to invest in other
countries, as new protectionist measures
potentially emerge and as countries
confrontations could scale. Changes in
international agreements may create
economic uncertainties for companies and
organisms that have invested and planned
to achieve long-term commitments (e.g.
Paris Agreement). Even though initial
effects of retaliatory economic policies are
expected to hurt countries or industries
involved, spillover effects will likely impact
other countries and industries. The possible
deprioritization of global commitments like
a sustainability agenda by some countries
could lead to a slowdown in the adoption
of regulatory frameworks or practices
required for sustainable initiatives, which
could challenge our capacity to achieve
our sustainability commitments and impact
our reputation. All these events have
the capacity to materially and adversely
affect our business results, operations, and
financial conditions.
Mitigation Strategies
• Monitor geoeconomic interactions among
countries and prepare for risk scenarios.
• Ensure supply chain resilience.
• Implement cost containment initiatives.
• Cooperate and engage with governments,
regulators, and other players through
business and/or trade associations.
• Execute financial strategy.
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Contents
Our Company
Our Strategy
Financial Performance
Environmental Excellence
Stakeholder Engagement
Governance
Corporate Governance
Our Board of Directors
Executive Committee
Ethics and Compliance
Risk and Opportunity Management
• Respect for Human Rights
Appendix
Respect for Human Rights
Is Embedded in Our Business
Human rights are universal, inalienable, and
fundamental rights inherent to all human
beings. We strive to reinforce our respect
for human rights through our core value of
Acting With Integrity to embed it in the way
we do business.
Our Aspiration
Respect for human rights is fundamental
to being a responsible and ethical business.
At Cemex, we support our operations to
respect universal human rights principles,
and we actively advocate for sustainable
practices within the cement industry.
Our Commitment
Cemex is a signatory to the UN Global
Compact and strives to respect the
principles and values of the International
Bill of Human Rights and the International
Labour Organization’s Declaration on
Fundamental Principles and Rights at
Work. Also, as signatories of the UN
Global Compact, we seek to align with
the UN Guiding Principles on Business and
Human Rights, and we annually submit
communication on our alignment progress.
Upholding Our Human Rights
Commitments
Cemex Policies
Our policies facilitate the implementation
and safeguarding of our human rights
commitments. We expect our employees,
suppliers, contractors, and other business
partners to consistently abide by applicable
policies and procedures wherever we
operate. We seek to engage with third
parties who are able to meet our human
rights principles and practices.
ä
Learn more about our policies with human rights
components.
Cemex Management Systems and
Processes
At the Cemex Group, human rights
are considered within our existing risk
management approach and third-party
due diligence process, reflecting our
commitment to respecting human rights
across our supply chain and business
relationships. To uphold this commitment,
we have established several evaluation
processes for third parties, including supplier
sustainability assessments, contractor health
and safety verification programs, among
others. We continue to make progress in
developing and implementing preventive
measures to mitigate adverse human rights
impacts in our operations, primarily focusing
on the salient human rights issues identified
through our Human Rights Self-Assessment.
ä
Learn more about our evaluation processes.
Cemex places great
importance on the
insights and concerns
of stakeholders
Cemex’s Human Rights Commitment Timeline
2004
Cemex became a signatory member
of the UN Global Compact (UNGC).
2014
Cemex released its first Human Rights
Policy Statement.
2017
Cemex implemented its Human Rights
Compliance Assessment in 30 countries
to identify human rights risks.
2018
Cemex issued its Global Workplace
Diversity and Inclusion Policy, enhanced
its Code of Ethics and Business Conduct,
and updated its Human Rights Policy
Statement.
Cemex became a participant of the
UNGC.
2019
Cemex updated its Supplier Code of
Conduct When Doing Business With Us.
2020
Cemex released its Dynamic Work
Schemes Global Guideline, its Diversity
and Inclusion Position Paper, and its
Global Policy for Third Parties.
2021
Cemex released its Global Digital
Citizenship Guideline and launched its
Pride Month Global Campaign.
2022
Cemex created the Global Human Rights
Taskforce and completed a benchmark
against industry best practices and a gap
analysis against certain EU regulations.
2023
Cemex enhanced its Human Rights Due
Diligence process, enhanced and updated
its Human Rights Self-Assessment
(previously named Human Rights
Compliance Assessment), and made it
available in 100% of all countries where
we operate. Cemex designed its Human
Rights Risk Assessment process.
2024
Cemex updated its Human Rights Policy
to align with evolving standards and
incorporate new processes developed
during 2023, taking effect on January 1,
of 2025.
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Contents
Our Company
Our Strategy
Financial Performance
Environmental Excellence
Stakeholder Engagement
Governance
Corporate Governance
Our Board of Directors
Executive Committee
Ethics and Compliance
Risk and Opportunity Management
• Respect for Human Rights
Appendix
Our Actions
As we work to achieve our aspirations,
we focus on establishing robust
monitoring and risk-identification
practices. Our commitment includes
efforts to engage with stakeholders
through dialogues designed to identify
and address concerns.
Cemex places great importance on the
insights and concerns of stakeholders,
including employees, local communities,
customers, suppliers, and investors. We
believe cultivating meaningful dialogue
with these stakeholders is essential
to understanding their perspectives,
addressing concerns, and fostering
enduring, sustainable relationships.
Our Human Rights Policy
In 2024, we continued building on the
progress made in 2023. Our efforts
focused on reviewing and strengthening
our human rights program and seeking
alignment with evolving legal standards,
directives, and current best practices.
As part of these efforts, we significantly
enhanced and updated our Human
Rights Policy.
Published in 2024 and taking effect
at the beginning of 2025, the revised
policy establishes a new framework and
processes for evaluating both Cemex’s
own operations and the third parties we
engage with concerning human rights,
while also enhancing our existing human
rights processes.
Under this new policy, our Board of
Directors and its Sustainability, Climate
Action, Social Impact, and Diversity
Committee are responsible for supporting
and overseeing the implementation of
the Human Rights program, including the
policy itself. Additionally, our Human Rights
Global Committee, composed of Cemex
leaders from relevant functional areas, is
responsible for managing, interpreting, and
implementing the policy. This committee
may also develop and execute strategies
and solutions to promote compliance
with the policy. Continuous improvement
and effectiveness of action plans are
monitored through self-assessments and/
or risk assessments conducted on a regular
basis. The Human Rights Global Committee
reports the results at least once a year
to the Cemex Board of Directors and its
Sustainability, Climate Action, Social Impact,
and Diversity Committee.
Our Human Rights Due Diligence
Approach
We continue to work on improving our
Human Rights Due Diligence (HRDD)
approach, working toward aligning with
international guidelines and standards, such
as the UN Guiding Principles on Business
and Human Rights and the Organisation for
Economic Co-operation and Development
(OECD) Due Diligence Guidance for
Responsible Business Conduct. We continue
to embed these guidelines and standards in
all company areas and work on monitoring
abidance throughout our operations and
our value chain.
Our HRDD aims to incorporate a human
rights risk management system that embeds
our policy commitment and enables us to
identify, assess, respond to, remediate,
monitor, and communicate human rights
risks and impacts resulting from our
operations, activities, and relationships.
Embed
Identify & Assess
Respond & Remediate
Monitor
Communicate
Human Rights Due Diligence
➎
➍
➌
➋
➊
1. Embed: Incorporating our commitments
into our governance, practices, policies,
guidelines, and processes.
2. Identify and Assess: Identifying human
rights and the rights-holders who may
be adversely affected by our operations,
activities, and relationships. Analyzing
identified risks and adverse impacts in
accordance with their corresponding
level of risk or adverse impact.
3. Respond and Remediate: Developing
and implementing measures to address
and mitigate human rights risks and
prevent or remedy adverse impacts.
4. Monitor: Regularly monitoring and
reviewing the effectiveness of our human
rights program processes, measures, and
actions.
5. Communicate: Disclosing information
regarding human rights to comply
with legal requirements and raising
awareness of our human rights program
and HRDD approach among employees,
business units, and other stakeholders.
We intend to report on our approach and
efforts in respecting human rights and
procuring communication with internal
and external stakeholders.
We have not identified significant adverse
findings related to Cemex on the Business
and Human Rights Resource Centre portal,
a global platform that tracks human rights
concerns across all industries and regions.
Our HRDD is designed to focus on five main key elements:
130 Cemex 2024 Integrated Report
Contents
Our Company
Our Strategy
Financial Performance
Environmental Excellence
Stakeholder Engagement
Governance
Corporate Governance
Our Board of Directors
Executive Committee
Ethics and Compliance
Risk and Opportunity Management
• Respect for Human Rights
Appendix
Cemex ranked #1 among heavy industry peers in the
2024 World Benchmarking Alliance rankings, which
assess corporate performance on sustainability
and human rights through an Accelerate Climate
Transition assessment and a social assessment that
includes Core Social and Just Transition Indicators.
Human Rights Self-Assessment
Our Human Rights Self-Assessment (HRSA) allows us to identify
and map human rights risks across our operations and countries
where we operate through a comprehensive questionnaire that
addresses human rights practices.
The HRSA includes 72 questions on 17 human rights dimensions.
Survey inquiries reflect best practices on human rights and are
aligned with the UNGC’s Guiding Principles. Participants are
internal stakeholders who answer inquiries by ranking Cemex’s
compliance with each statement to the best of their knowledge
as high, medium-high, medium, medium-low, low, or by
indicating a lack of knowledge on the topic.
Based on HRSA results, additional assessments are available to
help develop mitigation action plans. Our operations in countries
classified as “high-risk” under our internal methodology may be
required to conduct assessments more frequently to better track
human rights risks and mitigation efforts.
The HRSA questionnaire covers key topics for internal
stakeholders to consider when responding, including:
• Health and safety
• Working hours
• Wages
• Leave
• Employment
status
• Non-harassment
• Privacy
• Land and property
• Security
arrangements
• Community
engagement
• Product
stewardship
• Human rights
awareness
• Association and
bargaining
• Forced labor
• Child labor
• Discrimination
• Sustainability
Human Rights Risk Assessment
In addition to our HRSA, our Human Rights Risk
Assessments (HRRAs) consist of additional and
subsequent evaluations for locations that resulted in a
“high risk” classification as per human rights risk indexes
and HRSA results. The HRRAs support us in further
exploring risk situations and better understanding the
origin of the identified risks through engagements with
relevant stakeholders. The ultimate objective of our
HRRAs is to design adequate measures to mitigate and
address any potential human rights risk.
ETHOSline is Cemex’s official global grievance
program. It is available to all our stakeholders
and linked to all our management systems.
ä
See our Governance > Ethics & Compliance section on page 111
of this report for more information.
Salient Human Rights Issues
Through our human rights due diligence process and
assessments conducted in the countries where we
operate, we have identified those human rights that are
most at risk of severe negative impact due to Cemex’s
activities of business relationships and that require
prioritized efforts. In the past, identified salient human
rights issues have been primarily employee-focused,
with key risks associated with the following areas:
• Work-life balance
• Data privacy
• Security arrangements
• Community engagement
• Human rights awareness
These areas represent focal points where we must
concentrate our efforts to address and mitigate
potential human rights challenges. Our management
systems and processes enable us to prioritize mitigation
actions, allocate resources efficiently, and assess key
performance indicators (KPIs) internally, facilitating
transparent reporting on our progress.
Cemex remains committed to identifying its salient
human rights issues. To do so, we seek to focus on the
most severe potential negative impacts on human
rights by considering the gravity of the said impact on
the human right, the scope of individuals potentially
affected, and the ease with which said individuals could
be restored to their enjoyment of the right. We continue
working to enhance our approach to identifying and
addressing these issues.
ä
Learn more about our policies and processes with human rights
components on pages 131-132 of this report.
We are committed to continue strengthening our
approach to respecting Human Rights. To achieve
this, we have outlined the following steps we plan to
undertake in coming years:
• Creating specialized human rights training designed to
strengthen risk mitigation;
• Implementing HRRAs to a broader scope of countries
where we operate;
• Issuing our Human Rights Guidelines and train
employees; and
• Developing targets to monitor our progress in human
rights, particularly in relation to the Salient Issues that
are most material to our business.
Human Rights Training for Board of Directors
Respecting and promoting human rights is a company
commitment that starts at the top with our Cemex
Essentials course for our Board of Directors. This
resource provides insights into commitments, strategies,
priorities, processes, and outcomes, including our
progress on human rights. The course curriculum
includes our Human Rights Commitment, human rights
due diligence process, policies and steps, and additional
human rights learning resources. This voluntary training
course generates awareness among our Board Members
on how Cemex operationalizes the UN Guiding Principles
and implements its human rights due diligence.
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Contents
Our Company
Our Strategy
Financial Performance
Environmental Excellence
Stakeholder Engagement
Governance
Corporate Governance
Our Board of Directors
Executive Committee
Ethics and Compliance
Risk and Opportunity Management
• Respect for Human Rights
Appendix
Human Rights: Our Policies and Processes
Cemex Policies and Guidelines
Our policies enable us to implement and safeguard our human rights commitments. We expect our employees, suppliers,
contractors, and other business partners to consistently abide by applicable policies and procedures wherever we operate.
We strive to engage with third parties who are able to meet our human rights principles and practices.
Cemex Global Policy
Human Rights Components and/or Practices
Human Rights Policy
• We seek to respect internationally recognized human rights and standards, including those in the International Bill of Human Rights and the International Labor
Organization’s Declaration on Fundamental Principles and Rights at Work. Compliance with this policy is mandatory for Cemex employees, directors, and officers.
Cemex expects third parties with whom it does business to uphold the principles of the policy and respect internationally recognized human rights and standards.
The policy also includes a description of our Human Rights Due Diligence approach to procure the identification, assessment, response, remediation, and monitoring
of human rights risks and impacts, as applicable.
Social Impact Policy
• We seek to foster social accountability and sustainability by considering the probable consequences of our commitments to stakeholders, including employees, third
parties, communities, and the environment.
• Our policy sets clear objectives, indicators for social impact assessment, and guidelines for ethical conduct and corporate social responsibility, including the
Community Engagement Management process.
Health and Safety Policy
• We aim to provide a safe workplace for employees and contractors by adhering to company policies, the Health and Safety Management System, and applicable
local laws. We strive to achieve zero injuries by fostering a positive health and safety culture, whereby individuals look after the health and safety of each other.
The policy includes the Health and Safety Management System among its key components.
Public Affairs and Stakeholder
Engagement Policy
• We strive to build mutually beneficial relationships with our stakeholders and communities.
• We are committed to engaging our stakeholders in an ongoing and transparent way.
• We seek to create value for society through our core business activities.
Code of Ethics and Business
Conduct
• We encourage our Board of Directors and employees, as well as third parties, such as customers, suppliers, and contractors, to act with integrity and uphold our values.
• Our Code of Ethics and Business Conduct promotes that our employees act with integrity, honesty, and transparency in their dealings with third parties, colleagues, and
other stakeholders. Our Code also establishes respect for and support of the protection of internationally proclaimed human rights principles.
Code of Conduct When Doing
Business With Us
• We aim for our suppliers to abide by workers’ freedom of association and non-retaliation rights to not use any work that is performed under threat of penalty,
including forced overtime, human trafficking, debt bondage, forced prison labor, slavery, or servitude, to provide a safe and healthy workplace for employees
and contractors, to uphold fair and decent working conditions, to avoid the employment of children below the legal minimum age, and to make no distinctions on
grounds of discrimination.
Global Policy for Third Parties
• Our Global Policy for Third Parties sets out principles and guidelines we expect third parties to abide by, as well as the general provisions on the due diligence
procedures that third parties are required to undergo to conduct business with Cemex.
Global Workplace Diversity,
Equity, and Inclusion Policy
• We aim to foster an encouraging environment for individual growth, where personal talent and merit are always recognized, diversity is valued, and equity and
inclusiveness are promoted.
• Our Global Workplace Diversity, Equity, and Inclusion Policy establishes principles and commitments with the objective of enriching the workplace by enforcing
diversity, equity, and inclusion.
• We intend for third parties with whom we have a commercial relationship to also comply with the principles and standards reflected in our policy.
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Our Company
Our Strategy
Financial Performance
Environmental Excellence
Stakeholder Engagement
Governance
Corporate Governance
Our Board of Directors
Executive Committee
Ethics and Compliance
Risk and Opportunity Management
• Respect for Human Rights
Appendix
Cemex Global Policy
Human Rights Components and/or Practices
Global Workplace
Nondiscrimination,
Non-Harassment,
Non-Bullying and Non-
Retaliation Policy
• We expect Cemex employees and applicable third parties to be treated with dignity, respect, and freedom from discrimination, harassment, retaliation, and bullying
in all work-related circumstances. Third parties in commercial relationships with us are also required to adhere to this policy and its principles.
Environmental Policy
• We actively pursue a pollution prevention policy, aiming to apply the best available techniques to minimize operational impact.
• We strive to comply with company policies, procedures, and applicable local laws and regulations.
• We seek to maximize our energy and resource efficiency, lowering carbon intensity, and reducing emissions by managing energy use, water consumption, and waste
generation.
• Responsible land management within our operations aims to protect ecosystems and biodiversity, contributing to nature conservation.
• We seek to provide training with the objective of appropriately managing the environmental aspects of our operations.
Water Policy
• We are committed to minimizing our impact on water resources across three key aspects: resource availability, quality, and ecosystem integrity.
Biodiversity Policy
• We strive to integrate biodiversity initiatives seamlessly into our business model, considering the identification, assessment, and management of biodiversity values
in our decision-making processes and management systems throughout the lifecycles of sites.
Global Personal Data
Protection Policy
• We strive to comply with all applicable laws protecting the personal data of customers, suppliers, business partners, and employees, as well as general accepted
principles on data protection.
• We believe that processing personal data should always be made for lawful purposes.
• Data subjects are entitled to a reasonable expectation of privacy in the processing of their data.
Global Anti-Corruption Policy
• This global policy applies to all Cemex directors, officers, and employees, regardless of where they reside or conduct business; Cemex subsidiaries, affiliates,
and third-party relationships over which Cemex has control, including joint ventures; and, all agents, consultants, business partners, and other third-party
representatives when they act on Cemex’s behalf.
• We seek to comply with applicable anti-corruption laws.
Salient Human Rights and Action Plans
We have previously identified salient human
rights issues, as established in page 130 of
this report.
Cemex is committed to identifying its
salient human rights issues. To accomplish
this, we seek to focus on the most severe
potential negative impacts on human rights
by considering the gravity of a said impact
on the human right, the scope of individuals
potentially affected, and the ease with
which said individuals could be restored to
their enjoyment of the right. We continue
our efforts to identify our salient human
rights issues.
Some of the types of human rights risks that
Cemex may face in its business activities and
supply chains include, but are not limited to:
• Working conditions in our operations and
our supply chain
• Security-related violations
• Dust and other emissions
• Climate change and its impacts
• Water contamination and scarcity
• Welfare at work
133
Cemex 2024 Integrated Report
Appendix
Selected Consolidated Financial Information
Financial Information
Non-Financial Information
Scope and Boundaries of This Report
Cemex’s Materiality Assessment
Stakeholder Engagement
Governance
EU Taxonomy
GRI Content Index
International Sustainability Standards Board (ISSB)
Sustainability Accounting Standards Board Response (SASB)
Task Force on Climate-related Financial Disclosure Response (TCFD)
Terms We Use
Cautionary Statement Regarding Forward-Looking Statements
Investor, Contact and Feedback Information
133
Cemex 2024 Integrated Report
134
Cemex 2024 Integrated Report
Contents
Our Company
Our Strategy
Financial Performance
Environmental Excellence
Stakeholder Engagement
Governance
Appendix
• Selected Consolidated Financial
Information
Financial Information
Non-Financial Information
Scope and Boundaries of
This Report
Cemex’s Materiality Assessment
Stakeholder Engagement
Governance
EU Taxonomy
GRI Content Index
International Sustainability
Standards Board (ISSB)
Sustainability Accounting
Standards Board Response (SASB)
Task Force on Climate-related
Financial Disclosure Response
(TCFD)
Terms We Use
Cautionary Statement Regarding
Forward-Looking Statements
Investor, Contact and Feedback
Information
Our Performance in Detail
Selected Consolidated Financial Information
Cemex, S.A.B. de C.V. and Subsidiaries
Millions of Dollars, except ADSs and per-ADS amounts
Operating Results (1)
2022
2023
2024
Revenue
14,706
16,554
16,200
Cost of sales (2)
(10,221)
(10,979)
(10,761)
Gross profit
4,485
5,575
5,439
Operating expenses
(3,124)
(3,616)
(3,611)
Operating earnings before other expenses, net
1,361
1,959
1,828
Other expenses, net
(488)
(211)
(7)
Financial expense
(505)
(539)
(555)
Financial income and other items, net (3)
172
16
(379)
Earnings before income taxes
570
1,323
980
Discontinued operations (1)
483
80
47
Non-controlling interest net income (4)
27
17
21
Controlling interest net income
858
182
939
Millions of average ADSs outstanding (5,6,7)
1,478
1,470
1,469
Controlling interest basic earnings per ADS (5,6,7)
0.58
0.13
0.64
Controlling interest basic earnings per ADS from
continuing operations (5,6,7)
0.25
0.07
0.61
Controlling interest basic earnings per ADS from
discontinued operations (5,6,7)
0.33
0.06
0.03
Dividends per ADS (5,6,7,8)
n.a.
n.a.
0.08
Statement of Financial Position Information
2022
2023
2024
Cash and cash equivalents
495
624
864
Assets held for sale and other current assets
183
191
370
Property, machinery and equipment, net and assets
for the right-of-use, net (10)
11,284
12,466
11,240
Total assets
26,447
28,433
27,299
Liabilities directly related to assets held for sale
–
–
91
Current debt and other financial obligations (11)
987
975
1,116
Non-current debt and other financial obligations (11)
7,838
7,189
6,242
Total liabilities
15,538
16,317
14,822
Non-controlling interest
408
352
301
Total controlling interest (4)
10,501
11,764
12,176
Total stockholders’ equity
10,909
12,116
12,477
Book value per ADS (5,6)
7.11
8.00
8.29
Other Financial Data (1)
2022
2023
2024
Operating margin
9.3%
11.8%
11.3%
Operating EBITDA margin (9)
16.6%
19.0%
19.0%
Operating EBITDA (9)
2,433
3,150
3,079
Free cash flow after maintenance capital expenditures (9)
553
1,208
870
Selected Consolidated Financial
Information (continued)
Notes to Selected Consolidated Financial Information:
1) Considering the disposal of entire reportable operating segments as well as the sale of significant businesses, Cemex’s statement of operations present
in the single line item of “Discontinued operations,” the results of: a) the operations in the Philippines for the period from January 1 to December 2, 2024
and the years 2023 and 2022; b) the operations in Guatemala for the period from January 1 to September 10, 2024 and the years 2023 and 2022; c)
the operations in the Dominican Republic for the years 2024, 2023 and 2022; d) Neoris’ operations for the period from January 1 to October 25, 2022
and; e) the operations in Costa Rica and El Salvador for the period from January 1 to August 31, 2022. (See note 4.2 in our 2024 consolidated financial
statements included elsewhere in this annual report).
2) Cost of sales includes depreciation, amortization and depletion of assets involved in the production, expenses related to storage in production plants,
freight expenses of raw material in plants and delivery expenses of Cemex’s ready-mix concrete business.
3) Financial income and other items, net, includes foreign exchange results, financial income, results from financial instruments, net, interest cost of
defined benefit liabilities, net, effects of amortized cost on assets and liabilities, and others.
4) In 2022, controlling interest includes $994 million, and in 2023 and 2024, includes $1,986 million of aggregate notional amount of subordinated notes
issued by Cemex. For accounting purposes, these subordinated notes were included within stockholders’ equity. (See note 21.2 in our 2024 consolidated
financial statements included elsewhere in this annual report).
5) Cemex, S.A.B. de C.V.’s CPOs are listed on the Mexican Stock Exchange. Cemex, S.A.B. de C.V.’s ADSs, each of which currently represents ten CPOs,
are listed on the New York Stock Exchange (“NYSE”). In the Consolidated Financial Statements, earnings per share are presented on a per-share basis.
(See notes 21.1 and 23 in our 2024 consolidated financial statements included elsewhere in this annual report).
6) In 2022, 2023 and 2024, the number of ADSs outstanding, stated in millions of ADSs, represents: (i) the total average amount of ADS equivalent units
outstanding of each year and; (ii) excludes the total number of ADS equivalents issued by Cemex and owned by its subsidiaries.
7) For purposes of the selected financial information for the periods ended December 31, 2022 through 2024, the controlling interest basic earnings per
ADS amounts were determined by considering the average amount of balance number of ADS equivalent units outstanding during each year.
8) Dividends declared at each year’s annual stockholders’ meeting for each period are reflected as dividends for the preceding year. We did not declare
dividends for fiscal years 2022 and 2023, a cash dividend of $120 million was declared for fiscal year 2024. (See note 21.1 in our 2024 consolidated
financial statements included elsewhere in this annual report).
9) Please refer to page 270 for the definition of terms.
10) In 2022, 2023 and 2024 excludes assets held for sale. In addition, in 2024 excludes assets in the Dominican Republic. (See notes 4.2 and 13 in our 2024
consolidated financial statements included elsewhere in this annual report).
11) Other financial obligations include: a) lease contracts; and b) liabilities secured with accounts receivables. (See notes 15.4, 17.2 and 29.4 in our 2024
consolidated financial statements included elsewhere in this annual report).
135
Cemex 2024 Integrated Report
Contents
Our Company
Our Strategy
Financial Performance
Environmental Excellence
Stakeholder Engagement
Governance
Appendix
• Selected Consolidated Financial
Information
Financial Information
Non-Financial Information
Scope and Boundaries of
This Report
Cemex’s Materiality Assessment
Stakeholder Engagement
Governance
EU Taxonomy
GRI Content Index
International Sustainability
Standards Board (ISSB)
Sustainability Accounting
Standards Board Response (SASB)
Task Force on Climate-related
Financial Disclosure Response
(TCFD)
Terms We Use
Cautionary Statement Regarding
Forward-Looking Statements
Investor, Contact and Feedback
Information
136
Cemex 2024 Integrated Report
Contents
Our Company
Our Strategy
Financial Performance
Environmental Excellence
Stakeholder Engagement
Governance
Appendix
Selected Consolidated Financial
Information
• Financial Information
Non-Financial Information
Scope and Boundaries of
This Report
Cemex’s Materiality Assessment
Stakeholder Engagement
Governance
EU Taxonomy
GRI Content Index
International Sustainability
Standards Board (ISSB)
Sustainability Accounting
Standards Board Response (SASB)
Task Force on Climate-related
Financial Disclosure Response
(TCFD)
Terms We Use
Cautionary Statement Regarding
Forward-Looking Statements
Investor, Contact and Feedback
Information
Consolidated
Statements of
Income
Cemex, S.A.B. de C.V. and Subsidiaries
(Millions of U.S. Dollars, except for
earnings per share)
Years ended December 31,
Notes
2024
2023
2022
Revenues
3
$
16,200
16,554
14,706
Cost of sales
5
(10,761)
(10,979)
(10,221)
Gross profit
5,439
5,575
4,485
Operating expenses
6
(3,611)
(3,616)
(3,124)
Operating earnings before other expenses, net
2
1,828
1,959
1,361
Other expenses, net
7
(7)
(211)
(488)
Operating earnings
1,821
1,748
873
Financial expense
8.1, 17
(555)
(539)
(505)
Financial income and other items, net
8.2
(379)
16
172
Share of profit of equity accounted investments
14.1
93
98
30
Earnings before income tax
980
1,323
570
Income tax
20
(67)
(1,204)
(168)
Net income from continuing operations
913
119
402
Discontinued operations
4.2
47
80
483
CONSOLIDATED NET INCOME
960
199
885
Non-controlling interest net income
21
17
27
CONTROLLING INTEREST NET INCOME
$
939
182
858
Basic earnings per share
23
$
0.0217
0.0042
0.0197
Basic earnings per share from continuing operations
23
$
0.0206
0.0023
0.0086
Diluted earnings per share
23
$
0.0213
0.0041
0.0193
Diluted earnings per share from continuing operations
23
$
0.0202
0.0023
0.0085
The accompanying notes are part of these consolidated financial statements.
137
Cemex 2024 Integrated Report
Contents
Our Company
Our Strategy
Financial Performance
Environmental Excellence
Stakeholder Engagement
Governance
Appendix
Selected Consolidated Financial
Information
• Financial Information
Non-Financial Information
Scope and Boundaries of
This Report
Cemex’s Materiality Assessment
Stakeholder Engagement
Governance
EU Taxonomy
GRI Content Index
International Sustainability
Standards Board (ISSB)
Sustainability Accounting
Standards Board Response (SASB)
Task Force on Climate-related
Financial Disclosure Response
(TCFD)
Terms We Use
Cautionary Statement Regarding
Forward-Looking Statements
Investor, Contact and Feedback
Information
Years ended December 31,
Notes
2024
2023
2022
CONSOLIDATED NET INCOME
$
960
199
885
Items that will not be reclassified subsequently to the statement of income
Net actuarial gains (losses) from remeasurements of defined benefit pension plans
19
74
(45)
176
Effects from strategic equity investments
14.2
1
(2)
(9)
Income tax benefit (expense) recognized directly in other comprehensive income
20
(11)
5
(32)
64
(42)
135
Items that are or may be reclassified subsequently to the statement of income
Results from derivative financial instruments designated as cash flow hedges
17.4
(140)
(7)
80
Currency translation results of foreign subsidiaries
21.2
(206)
255
(326)
Income tax benefit recognized directly in other comprehensive income
20
(37)
1
18
(383)
249
(228)
Total items of other comprehensive income (loss), net
(319)
207
(93)
CONSOLIDATED COMPREHENSIVE INCOME
641
406
792
Non-controlling interest comprehensive income (loss)
(31)
31
(36)
CONTROLLING INTEREST COMPREHENSIVE INCOME
$
672
375
828
The accompanying notes are part of these consolidated financial statements.
Consolidated
Statements of
Comprehensive
Income
Cemex, S.A.B. de C.V. and Subsidiaries
(Millions of U.S. Dollars)
138
Cemex 2024 Integrated Report
Contents
Our Company
Our Strategy
Financial Performance
Environmental Excellence
Stakeholder Engagement
Governance
Appendix
Selected Consolidated Financial
Information
• Financial Information
Non-Financial Information
Scope and Boundaries of
This Report
Cemex’s Materiality Assessment
Stakeholder Engagement
Governance
EU Taxonomy
GRI Content Index
International Sustainability
Standards Board (ISSB)
Sustainability Accounting
Standards Board Response (SASB)
Task Force on Climate-related
Financial Disclosure Response
(TCFD)
Terms We Use
Cautionary Statement Regarding
Forward-Looking Statements
Investor, Contact and Feedback
Information
Consolidated
Statements of
Financial Position
Cemex, S.A.B. de C.V. and Subsidiaries
(Millions of U.S. Dollars)
As of December 31,
Notes
2024
2023
ASSETS
CURRENT ASSETS
Cash and cash equivalents
9
$
864
624
Trade accounts receivable
10
1,582
1,751
Other accounts receivable
11
715
650
Inventories
12
1,485
1,789
Assets held for sale and other current assets
13
370
191
Total current assets
$
5,016
5,005
NON-CURRENT ASSETS
Investments in associates and joint ventures
14.1
753
729
Other investments and non-current accounts receivable
14.2
256
340
Property, machinery and equipment, net and assets for the right-of-use, net
15
11,240
12,466
Goodwill and intangible assets, net
16
9,361
9,530
Deferred income tax assets
20.2
673
363
Total non-current assets
22,283
23,428
TOTAL ASSETS
$
27,299
28,433
LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES
Current debt
17.1
189
25
Other current financial obligations
17.2
927
950
Trade accounts payable
18.1
3,090
3,109
Income tax payable
20.4
469
1,082
Other current liabilities
18.2
1,326
1,620
Liabilities related to assets held for sale
13
91
—
Total current liabilities
$
6,092
6,786
NON-CURRENT LIABILITIES
Non-current debt
17.1
5,340
6,203
Other non-current financial obligations
17.2
902
986
Pensions and other post-employment benefits
19
559
735
Deferred income tax liabilities
20.2
548
443
Other non-current liabilities
18.3
1,381
1,164
Total non-current liabilities
8,730
9,531
TOTAL LIABILITIES
$
14,822
16,317
STOCKHOLDERS’ EQUITY
Controlling interest:
Common stock and additional paid-in capital
21.1
7,699
7,699
Other equity reserves and subordinated notes
21.2
(770)
(363)
Retained earnings
21.3
5,247
4,428
Total controlling interest
12,176
11,764
Non-controlling interest
21.4
301
352
TOTAL STOCKHOLDERS’ EQUITY
12,477
12,116
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY
$
27,299
28,433
The accompanying notes are part of these consolidated financial statements.
139
Cemex 2024 Integrated Report
Contents
Our Company
Our Strategy
Financial Performance
Environmental Excellence
Stakeholder Engagement
Governance
Appendix
Selected Consolidated Financial
Information
• Financial Information
Non-Financial Information
Scope and Boundaries of
This Report
Cemex’s Materiality Assessment
Stakeholder Engagement
Governance
EU Taxonomy
GRI Content Index
International Sustainability
Standards Board (ISSB)
Sustainability Accounting
Standards Board Response (SASB)
Task Force on Climate-related
Financial Disclosure Response
(TCFD)
Terms We Use
Cautionary Statement Regarding
Forward-Looking Statements
Investor, Contact and Feedback
Information
Consolidated
Statements of
Cash Flows
Cemex, S.A.B. de C.V. and Subsidiaries
(Millions of U.S. Dollars)
Years ended December 31,
Notes
2024
2023
2022
OPERATING ACTIVITIES
Consolidated net income
$
960
199
885
Discontinued operations
47
80
483
Net income from continuing operations
913
119
402
Adjustments for:
Depreciation and amortization of assets
5, 6
1,250
1,190
1,072
Impairment losses of longed-lived assets
7
122
43
442
Share of profit of equity accounted investments
14.1
(93)
(98)
(30)
Results on sale of associates, fixed assets and others
(172)
(41)
(120)
Financial expense, financial income and other financial items, net
934
523
333
Income taxes
20
67
1,204
168
Decrease (increase) in working capital, excluding income taxes
231
192
(390)
Cash flows provided by operating activities from continuing operations
3,252
3,132
1,877
Interest paid
(621)
(549)
(493)
Income taxes paid
20.4
(878)
(515)
(136)
Net cash flows provided by operating activities from continuing operations
1,753
2,068
1,248
Net cash flows provided by operating activities from discontinued operations
141
154
120
Net cash flows provided by operating activities after interest and income taxes
1,894
2,222
1,368
INVESTING ACTIVITIES
Investment in property, machinery and equipment, net
15
(1,000)
(865)
(755)
Investment in intangible assets, net
16.1
(296)
(207)
(151)
Disposal (acquisition) of subsidiaries and associates, net
4, 14.1
1,020
(189)
341
Non-current assets and others, net
35
22
(14)
Cash flows used in investing activities from continuing operations
(241)
(1,239)
(579)
Net cash flows used in investing activities from discontinued operations
(87)
(83)
(61)
Net cash flows used in investing activities
(328)
(1,322)
(640)
FINANCING ACTIVITIES
Proceeds from new debt instruments
17.1
5,048
2,938
2,006
Debt repayments
17.1
(5,497)
(3,840)
(2,420)
Issuance of subordinated notes
21.2
—
992
—
Other financial obligations, net
17.2
(292)
(274)
(197)
Own shares repurchase program
21.1
—
—
(111)
Dividends paid
21.1
(90)
—
—
Shares in trust for future deliveries under share-based compensation
22
(52)
(45)
(36)
Changes in non-controlling interests
21.4
(2)
(62)
(14)
Derivative financial instruments
17.4
(37)
(189)
34
Coupons on subordinated notes
21.2, 21.4
(143)
(120)
(51)
Non-current liabilities, net
(188)
(101)
(172)
Net cash flows used in financing activities
(1,253)
(701)
(961)
Increase (decrease) in cash and cash equivalents from continuing operations
259
128
(292)
Increase in cash and cash equivalents from discontinued operations
54
71
59
Foreign currency translation effect on cash
(73)
(70)
115
Cash and cash equivalents at beginning of period
624
495
613
CASH AND CASH EQUIVALENTS AT END OF PERIOD
9
$
864
624
495
Changes in working capital, excluding income taxes:
Trade accounts receivable
$
56
(27)
(208)
Other accounts receivable and other assets
(45)
21
(23)
Inventories
196
68
(464)
Trade accounts payable
159
(45)
290
Other accounts payable and accrued expenses
(135)
175
15
Decrease (increase) in working capital, excluding income taxes
$
231
192
(390)
The accompanying notes are part of these consolidated financial statements.
Statements of Changes in Stockholders’ Equity
Cemex, S.A.B. de C.V. and Subsidiaries
For the years ended December 31, 2024, 2023 and 2022
(Millions of U.S. Dollars)
Notes
Common
stock
Additional
paid-in
capital
Other equity
reserves and
subordinated
notes
Retained
earnings
Total
controlling
interest
Non-
controlling
interest
Total
stockholders’
equity
Balance as of December 31, 2021
$
318
7,492
(1,371)
3,388
9,827
444
10,271
Net income for the period
—
—
—
858
858
27
885
Other comprehensive loss for the period
—
—
(30)
—
(30)
(63)
(93)
Total of other comprehensive income (loss) for the period
21.2
—
—
(30)
858
828
(36)
792
Own shares purchased under shares repurchase program
21.1
—
—
(111)
—
(111)
—
(111)
Shares in trust for future deliveries under share-based compensation
22
—
—
(36)
—
(36)
—
(36)
Share-based compensation
22
—
—
47
—
47
—
47
Coupons accrued on subordinated notes
21.2
—
—
(54)
—
(54)
—
(54)
Balance as of December 31, 2022
318
7,492
(1,555)
4,246
10,501
408
10,909
Net income for the period
—
—
—
182
182
17
199
Other comprehensive income for the period
—
—
193
—
193
14
207
Total of other comprehensive income for the period
21.2
—
—
193
182
375
31
406
Cancellation of own shares by shareholders’ resolution
21.1
—
(111)
111
—
—
—
—
Shares in trust for future deliveries under share-based compensation
22
—
—
(45)
—
(45)
—
(45)
Issuance of subordinated notes
21.2
—
—
992
—
992
—
992
Changes in non-controlling interest
21.4
—
—
—
—
—
(87)
(87)
Share-based compensation
22
—
—
61
—
61
—
61
Coupons accrued on subordinated notes
21.2
—
—
(120)
—
(120)
—
(120)
Balance as of December 31, 2023
318
7,381
(363)
4,428
11,764
352
12,116
Net income for the period
—
—
—
939
939
21
960
Other comprehensive income for the period
—
—
(267)
—
(267)
(52)
(319)
Total of other comprehensive income for the period
21.2
—
—
(267)
939
672
(31)
641
Dividends declared
21.1
—
—
—
(120)
(120)
—
(120)
Shares in trust for future deliveries under share-based compensation
22
—
—
(52)
—
(52)
—
(52)
Changes in non-controlling interest
21.4
—
—
—
—
—
(20)
(20)
Share-based compensation
22
—
—
55
—
55
—
55
Coupons accrued on subordinated notes
21.2
—
—
(143)
—
(143)
—
(143)
Balance as of December 31, 2024
$
318
7,381
(770)
5,247
12,176
301
12,477
The accompanying notes are part of these consolidated financial statements.
140 Cemex 2024 Integrated Report
Contents
Our Company
Our Strategy
Financial Performance
Environmental Excellence
Stakeholder Engagement
Governance
Appendix
Selected Consolidated Financial
Information
• Financial Information
Non-Financial Information
Scope and Boundaries of
This Report
Cemex’s Materiality Assessment
Stakeholder Engagement
Governance
EU Taxonomy
GRI Content Index
International Sustainability
Standards Board (ISSB)
Sustainability Accounting
Standards Board Response (SASB)
Task Force on Climate-related
Financial Disclosure Response
(TCFD)
Terms We Use
Cautionary Statement Regarding
Forward-Looking Statements
Investor, Contact and Feedback
Information
Notes to the
Consolidated
Financial
Statements
Cemex, S.A.B. de C.V. and Subsidiaries
As of December 31, 2024, 2023 and 2022
(Millions of U.S. Dollars)
1)
Description of Business
Cemex, S.A.B. de C.V., originated in 1906, is a publicly traded variable stock corporation (Sociedad Anónima Bursátil de Capital Variable) organized under
the laws of Mexico, and is the parent company of entities whose main activities are oriented to the construction industry, through the production, marketing,
sale and distribution of cement, ready-mix concrete, aggregates, urbanization solutions and other construction materials and services. In addition, Cemex,
S.A.B. de C.V. performs significant business and operational activities in Mexico.
The shares of Cemex, S.A.B. de C.V. are listed on the Mexican Stock Exchange (“MSE”) as Ordinary Participation Certificates (“CPOs”) (Certificados de
Participación Ordinaria) under the symbol “CemexCPO.” Each CPO represents two series “A” shares and one series “B” share of the common stock of
Cemex, S.A.B. de C.V. In addition, Cemex, S.A.B. de C.V.’s shares are listed on the New York Stock Exchange (“NYSE”) as American Depositary Shares
(“ADSs”) under the symbol “CX.” Each ADS represents ten CPOs.
The terms “Cemex, S.A.B. de C.V.” and/or the “Parent Company” used in these accompanying notes to the financial statements refer to Cemex, S.A.B. de
C.V. without its consolidated subsidiaries. The terms the “Company” or “Cemex” refer to Cemex, S.A.B. de C.V. together with its consolidated subsidiaries.
The issuance of these consolidated financial statements was authorized by the Board of Directors of the Parent Company on February 5, 2025 considering the
favorable recommendation of its Audit Committee. These financial statements will be submitted for approval to the annual general ordinary shareholders’
meeting of the Parent Company on March 25, 2025.
2)
Basis of Presentation and Disclosure
The consolidated financial statements as of December 31, 2024 and 2023 and for the years ended December 31, 2024, 2023 and 2022, were prepared in
accordance with IFRS Accounting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”).
Note 29 includes Cemex’s material accounting policies. Accounting policy information is material if, when considered together with other information included
in an entity’s financial statements, it can be reasonably expected to influence decisions that the primary users of general-purpose financial statements make
on the basis of those financial statements.
Presentation currency and definition of terms
The consolidated financial statements and the accompanying notes are presented in Dollars of the United States of America (the “United States”), except
when specific reference is made to a different currency. When reference is made to “U.S. Dollar,” “Dollar,” “Dollars” or “$” it means Dollars of the United
States. All amounts in the financial statements and the accompanying notes are stated in millions, except when references are made to earnings per share
and/or prices per share. When reference is made to “Ps” or “Pesos,” it means Mexican Pesos. When reference is made to “€” or “Euros,” it means the
currency in circulation in a considerable number of European Union (“EU”) countries. When reference is made to “£” or “Pounds,” it means British Pounds
sterling. Previously reported Dollar amounts of prior years are restated when the underlying transactions in other currencies remain unsettled using the
closing exchange rates as of the reporting date. Amounts reported in Dollars should not be construed as representations that such amounts represented
those Dollars or could be converted into Dollars at the rates indicated.
Amounts disclosed in the notes in connection with outstanding tax and/or legal proceedings (notes 20.4 and 25), which are originated in jurisdictions where
currencies are different from the Dollar, are presented in Dollar equivalents as of the closing of the most recent year presented. Consequently, without any
change in the original currency, such Dollar amounts will fluctuate over time due to changes in exchange rates.
Discontinued operations (note 4.2)
Cemex reports as discontinued operations the disposal of entire geographical reportable operating segments regardless of size, the sale of a considerable
portion of a significant reportable operating segment, as well as the sale of a major line of business. The statements of income and the statements of cash
flows of prior periods were represented to consider the effects of additional discontinued operations occurred in 2024.
141
Cemex 2024 Integrated Report
Contents
Our Company
Our Strategy
Financial Performance
Environmental Excellence
Stakeholder Engagement
Governance
Appendix
Selected Consolidated Financial
Information
• Financial Information
Non-Financial Information
Scope and Boundaries of
This Report
Cemex’s Materiality Assessment
Stakeholder Engagement
Governance
EU Taxonomy
GRI Content Index
International Sustainability
Standards Board (ISSB)
Sustainability Accounting
Standards Board Response (SASB)
Task Force on Climate-related
Financial Disclosure Response
(TCFD)
Terms We Use
Cautionary Statement Regarding
Forward-Looking Statements
Investor, Contact and Feedback
Information
142
Cemex 2024 Integrated Report
Notes to the Consolidated
Financial Statements
Contents
Our Company
Our Strategy
Financial Performance
Environmental Excellence
Stakeholder Engagement
Governance
Appendix
Selected Consolidated Financial
Information
• Financial Information
Non-Financial Information
Scope and Boundaries of
This Report
Cemex’s Materiality Assessment
Stakeholder Engagement
Governance
EU Taxonomy
GRI Content Index
International Sustainability
Standards Board (ISSB)
Sustainability Accounting
Standards Board Response (SASB)
Task Force on Climate-related
Financial Disclosure Response
(TCFD)
Terms We Use
Cautionary Statement Regarding
Forward-Looking Statements
Investor, Contact and Feedback
Information
Statements of income
Cemex includes the line item titled “Operating earnings before other expenses, net” considering that it is a subtotal relevant for the determination of
Cemex’s “Operating EBITDA” (Operating earnings before other expenses, net plus depreciation and amortization) as described below in this note. The line
item of “Operating earnings before other expenses, net” allows for easy reconciliation of the amount in these financial statements under IFRS to the non-
IFRS measure of Operating EBITDA by adding back depreciation and amortization. The line item “Other expenses, net” consists primarily of revenues and
expenses not directly related to Cemex’s main activities or which are of a non-recurring nature, including impairment losses of long-lived assets, results on
disposal of assets, as well as restructuring costs, among others (note 7). Under IFRS, the inclusion of certain subtotals such as “Operating earnings before
other expenses, net” and the display of the statement of income vary significantly by industry and company according to specific needs.
Although Operating EBITDA is not a measure of operating performance, an alternative to cash flows or a measure of financial position under IFRS, Operating
EBITDA is the financial measure used by Cemex’s chief executive officer to review operating performance and profitability, for decision-making purposes
and to allocate resources. Moreover, Operating EBITDA is a measure used by Cemex’s creditors to review its capacity to internally fund capital expenditures,
to service or incur debt and to comply with financial covenants under its financing agreements. Cemex presents “Operating EBITDA” in notes 4.3 (Selected
financial information by reportable segment and line of business) and 17.1 (Financial instruments–Financial covenants). Cemex’s Operating EBITDA may
not be comparable to other similarly titled measures of other companies.
Statements of cash flows
The statements of cash flows exclude the following transactions that did not represent sources or uses of cash:
Financing activities:
• In 2024, 2023 and 2022, the increases in other financing obligations in connection with lease contracts negotiated during the year for $290, $341 and
$296, respectively (note 17.2);
• In 2024, the portion of dividends declared during the year that is still payable as of December 31, 2024 for $30 (notes 21.1 and 21.3); and
Investing activities:
• In 2024, 2023 and 2022, in connection with the leases negotiated during the year, the increases in assets for the right-of-use related to lease contracts
for $290, $341 and $296, respectively (note 15.2).
Newly issued IFRS adopted in 2024
Beginning January 1, 2024, Cemex adopted IFRS amendments that did not result in any material impact on its results of operation or financial position, and
which are explained as follows:
Standard
Main topic
Amendments to IAS 7, Statement of Cash
Flows and IFRS 7, Financial Instruments:
Disclosures – Supplier Finance Arrangements
The amendments require disclosure of supplier finance arrangements and their effects on an entity’s
liabilities, cash flows and exposure to liquidity risk. As a result of the adoption of the amendments to IAS
7 and IFRS 7, the Company provides new disclosures for trade accounts payable under supplier finance
arrangements in note 18.1.
Amendment to IAS 1 – Presentation of
Financial Statement
Clarifies the requirements to be applied in classifying liabilities as current and non-current for non-current
liabilities that are subject to covenants within 12 months after the reporting period. The adoption of the
amendments to IAS 1 did not impact Cemex´s financial statements.
Amendments to IFRS 16, Leases – Lease
Liability in a Sale and Leaseback
The amendments mention that on initial recognition, the seller-lessee would include variable payments when
it measures a lease liability arising from a sale-and-leaseback transaction. In addition, the amendments
establish that the seller-lessee could not recognize gains or losses relating to the right of use it retains after
initial recognition. There are no sale and leaseback transactions during the reported periods.
143
Cemex 2024 Integrated Report
Notes to the Consolidated
Financial Statements
Contents
Our Company
Our Strategy
Financial Performance
Environmental Excellence
Stakeholder Engagement
Governance
Appendix
Selected Consolidated Financial
Information
• Financial Information
Non-Financial Information
Scope and Boundaries of
This Report
Cemex’s Materiality Assessment
Stakeholder Engagement
Governance
EU Taxonomy
GRI Content Index
International Sustainability
Standards Board (ISSB)
Sustainability Accounting
Standards Board Response (SASB)
Task Force on Climate-related
Financial Disclosure Response
(TCFD)
Terms We Use
Cautionary Statement Regarding
Forward-Looking Statements
Investor, Contact and Feedback
Information
3)
Revenues
Cemex’s revenues are mainly originated from the sale and distribution of cement, ready-mix concrete, aggregates and other construction materials and
services, including urbanization solutions, and are recognized at a point in time or over time in the amount of the price, before tax on sales, expected to be
received for goods and services supplied due to ordinary activities, as contractual performance obligations are fulfilled, and control of goods and services
passes to the customer. Cemex grants credit for terms ranging generally from 15 to 90 days depending on the type and risk of each customer. For the years
ended December 31, 2024, 2023 and 2022, revenues were as follows:
2024
2023
2022
From the sale of goods associated to Cemex’s main activities 1
$
15,732
16,103
14,293
From maritime trade and the sale of other goods and services 2
468
451
413
$
16,200
16,554
14,706
1
During the reported periods, revenues recognized over time under construction contracts were not significant.
2
Refers mainly to trade maritime transactions of cement and clinker carried by Cemex’s trading unit, among other minor revenues generated by subsidiaries not individually significant operating in different lines
of business.
Information of revenues by reportable segment and line of business for the years 2024, 2023 and 2022 is presented in note 4.3.
As of December 31, 2024 and 2023, amounts receivable for progress billings and advances received from customers of construction contracts were not
significant. Moreover, for the years 2024, 2023 and 2022, revenues and costs related to construction contracts in progress were not significant.
Certain promotions and/or discounts and rebates offered as part of the sale transaction, result in that a portion of the transaction price should be allocated
to such commercial incentives as separate performance obligations, recognized as contract liabilities with customers, and deferred to the statement of
income during the period in which the incentive is exercised by the customer or until it expires. For the years ended December 31, 2024, 2023 and 2022
changes in the balance of contract liabilities with customers were as follows:
2024
2023
2022
Opening balance of contract liabilities with customers
$
384
293
257
Increase during the period for new transactions
476
801
1,083
Decrease during the period for exercise or expiration of incentives
(576)
(717)
(1,045)
Currency translation effects
(15)
7
(2)
Closing balance of contract liabilities with customers
$
269
384
293
For the years 2024, 2023 and 2022, any costs capitalized as contract fulfillment assets and released over the contract life according to IFRS 15, Revenues
from contracts with customers were not significant.
144 Cemex 2024 Integrated Report
Notes to the Consolidated
Financial Statements
Contents
Our Company
Our Strategy
Financial Performance
Environmental Excellence
Stakeholder Engagement
Governance
Appendix
Selected Consolidated Financial
Information
• Financial Information
Non-Financial Information
Scope and Boundaries of
This Report
Cemex’s Materiality Assessment
Stakeholder Engagement
Governance
EU Taxonomy
GRI Content Index
International Sustainability
Standards Board (ISSB)
Sustainability Accounting
Standards Board Response (SASB)
Task Force on Climate-related
Financial Disclosure Response
(TCFD)
Terms We Use
Cautionary Statement Regarding
Forward-Looking Statements
Investor, Contact and Feedback
Information
4)
Business Combinations, Divestitures and Discontinued Operations and Selected Financial Information by Reportable Segment
and Line of Business
4.1)
Business Combinations
On September 3, 2024, Cemex acquired from the HEIM Group in Germany for a price of $4 a 51% controlling interest in RC-Baustoffe Berlin GmbH & Co.
KG (“RC-Baustoffe Berlin”), a Berlin-based recycling company that processes mineral construction, demolition, excavation materials and operates one
plant to permanently store biogenic CO2 in recycled mineral waste. The acquired recycling facility should process up to 0.4 million tons of materials per
year to turn into repurposed aggregates for concrete production, reintroducing them into the construction value chain. In connection with the excess of the
purchase price and the fair value of the net assets acquired, Cemex determined goodwill of $5.
On November 1, 2023, Cemex completed in Germany the acquisition of a 100% controlling interest in Kiesel, a mortars and adhesives technological leader
in the construction industry that serves the German, French, Polish, and Czech markets, consisting of a production facility and five distribution locations for
a total consideration of $13. Cemex determined goodwill of $5.
On May 11, 2023, Cemex completed the asset acquisition of Atlantic Minerals Limited in Newfoundland and Labrador, Canada, consisting mainly of an
aggregates quarry and maritime port operations for a price of $75. With this investment, Cemex secured a long-term aggregates reserve for its operations
in Florida and the east coast of the United States, as well as a source for chemical-grade stone serving broader base of customers. Cemex did not determine
goodwill.
On January 30, 2023, for a price of $13, Cemex acquired a 51% controlling interest in Israel-based SHTANG Recycle LTD (“SHTANG”), a construction
demolition and excavation waste recycling company. The acquisition is aligned with the strategy of strengthening Cemex’s business in developed markets
through bolt-on acquisitions in businesses with strong circular and sustainable attributes. SHTANG holds a 13-year license to build and operate the facility.
The state-of-the-art facility should be processing 600,000 tons of waste annually. The facility’s production is used as raw materials for aggregate production,
reintegrating them into the construction value chain. Cemex determined goodwill of $3.
On July 11, 2022, Cemex completed the acquisition of a 53% controlling interest in the German aggregates company ProStein for a total consideration of
$21. The investment expands Cemex’s aggregates business in the region and the estimated life of aggregates reserves in Central Europe for at least 25
years. The majority stake in ProStein’s assets adds a full range of fine and hardstone aggregates to Cemex’s aggregates portfolio. In addition to supplying
the greater Berlin area, the additional capacity should supply several urban centers in Poland and the Czech Republic. ProStein’s assets include six active
hardstone plants and six CDEW recovery sites. Cemex did not determine goodwill. On December 30, 2024, a sale option of the owners of the remaining
47% was activated in two tranches, a 21% in 2025 and a 26% in 2026, consequently, Cemex recognized a current liability of $8 and a non-current liability of
$10 and cancelled the non-controlling interest in consolidated equity.
The following table presents the combined condensed fair value information of the assets acquired and liabilities assumed that were integrated into Cemex
in connection with the acquisition of RC-Baustoffe Berlin in 2024 and of Kiesel, Atlantic Minerals and SHTANG in 2023.
2024
2023
Current assets
$
2
30
Property, machinery and equipment
8
89
Other non-current assets and goodwill
5
25
Total assets
15
144
Current liabilities
1
17
Non-current liabilities
9
19
Total liabilities
10
36
Net assets acquired
$
5
108
145
Cemex 2024 Integrated Report
Notes to the Consolidated
Financial Statements
Contents
Our Company
Our Strategy
Financial Performance
Environmental Excellence
Stakeholder Engagement
Governance
Appendix
Selected Consolidated Financial
Information
• Financial Information
Non-Financial Information
Scope and Boundaries of
This Report
Cemex’s Materiality Assessment
Stakeholder Engagement
Governance
EU Taxonomy
GRI Content Index
International Sustainability
Standards Board (ISSB)
Sustainability Accounting
Standards Board Response (SASB)
Task Force on Climate-related
Financial Disclosure Response
(TCFD)
Terms We Use
Cautionary Statement Regarding
Forward-Looking Statements
Investor, Contact and Feedback
Information
4.2)
Divestitures and Discontinued Operations
On December 2, 2024, considering separate agreements with each counterparty and the satisfaction of closing conditions, which included the approval
by the Philippine Competition Commission and the fulfillment of other requirements by the purchasers to the shareholders of Cemex Holdings Philippines,
Inc. (“CHP”), including the non-controlling interest owned by third parties in CHP, Cemex concluded the sale of its operations and assets in the Philippines to
DACON Corporation, DMCI Holdings, Inc. and Semirara Mining & Power Corporation, for a total consideration related to the Cemex’s controlling interest of
$798 including the sale of minority investments in land ownership and mineral extraction activities, as well as debt assumed by the purchaser. The divested
assets mainly consisted of two cement plants with an installed capacity of around 5.7 million metric tons per year, six marine distributions terminals and 18
land distribution centers, among other assets and investments in extracting entities. For the period from January 1 to December 2, 2024 and for the years
ended December 31, 2023 and 2022, Cemex’s operations in the Philippines are reported in the statements of income, net of income tax, in the single line
item “Discontinued operations,” including in 2024 a loss on sale of $119, net of the reclassification of foreign currency translation effects accrued in equity
until the date of loss of control and goodwill cancellation of $79.
On November 1, 2024, Cemex sold its non-controlling interest of 34.8% in Neoris N.V. (“Neoris”) (note 14.1) to EPAM Systems, Inc. for a total of $215 resulting in
a gain of $139 recognized within Other expenses, net. Neoris operates in the digital solutions sector and, after the sale, remains a services supplier for Cemex.
Previously, on October 25, 2022, Cemex sold to Advent International a 65% controlling interest in Neoris for a total of $119 and retained such non-controlling
interest of 34.8%. The remaining non-controlling interest was remeasured at fair value upon loss of control, was subsequently accounted for under the equity
method and was presented within the line item “Investments in associates and joint ventures.” Neoris’ results for the period from January 1 to October 25, 2022
are reported in the statements of income, net of income tax, in the single line item “Discontinued operations,” including in 2022 a gain on sale of $117, net of
the reclassification of foreign currency translation effects accrued in equity until the date of loss of control.
On September 10, 2024, Cemex sold its operations in Guatemala to a subsidiary of Holcim Ltd, for a total consideration of $212. The divested assets mainly
consist of one grinding mill with an installed capacity of around 0.6 million metric tons per year, three ready mix plants and five distribution centers. For the
period from January 1 to September 10, 2024 and for the years ended December 31, 2023 and 2022, Cemex’s operations in Guatemala are reported in the
statements of income, net of income tax, in the single line item “Discontinued operations,” including in 2024 a gain on sale of $163, net of the reclassification
of foreign currency translation effects accrued in equity until the date of loss of control.
On August 5, 2024, Cemex announced an agreement with Cementos Progreso Holdings, S.L. and its strategic partners, for the sale of its operations in the
Dominican Republic, for a total consideration of $950, subject to final adjustments. The assets for divestment mainly consist of one cement plant in the Dominican
Republic with two integrated production lines and related cement, concrete, aggregates and marine terminal assets. As of December 31, 2024, Cemex’s assets
and liabilities in the Dominican Republic are presented in the line items “Assets held for sale” and “Liabilities related to assets held for sale,” respectively (note
13). For the years ended December 31, 2024, 2023 and 2022, Cemex’s operations in the Dominican Republic are reported in Cemex’s income statements, net
of income tax, in the single line item “Discontinued operations.” See note 28 for subsequent events related to this disposal.
On August 31, 2022, through subsidiaries, Cemex concluded the sale with affiliates of Cementos Progreso Holdings, S.L. of its entire operations in Costa
Rica and El Salvador for a total of $325, related to Cemex’s aggregate controlling interest. The assets sold consisted of one cement plant, one grinding
station, seven ready-mix plants, one aggregates quarry, one distribution center in Costa Rica and one distribution center in El Salvador. Cemex’s results
of these operations for the period from January 1 to August 31, 2022 are reported in the statements of income, net of income tax, in the single line item
“Discontinued operations,” including in 2022 a gain on sale of $240 which includes the reclassification of foreign currency translation effects accrued in
equity until the disposal date.
146
Cemex 2024 Integrated Report
Notes to the Consolidated
Financial Statements
Contents
Our Company
Our Strategy
Financial Performance
Environmental Excellence
Stakeholder Engagement
Governance
Appendix
Selected Consolidated Financial
Information
• Financial Information
Non-Financial Information
Scope and Boundaries of
This Report
Cemex’s Materiality Assessment
Stakeholder Engagement
Governance
EU Taxonomy
GRI Content Index
International Sustainability
Standards Board (ISSB)
Sustainability Accounting
Standards Board Response (SASB)
Task Force on Climate-related
Financial Disclosure Response
(TCFD)
Terms We Use
Cautionary Statement Regarding
Forward-Looking Statements
Investor, Contact and Feedback
Information
The following table presents combined condensed information of the statement of financial position of the operations held for sale in the Dominican Republic
as of December 31, 2024, and as of the date of sale in 2024 of Guatemala and the Philippines.
2024
Current assets
$
326
Property, machinery and equipment
733
Other non-current assets and goodwill
161
Total assets
1,220
Current liabilities
291
Non-current liabilities
113
Total liabilities
404
Net assets sold or held for sale
$
816
The following table presents condensed combined information of the statements of income of: a) the operations in the Philippines for the period from
January 1 to December 2, 2024 and the years 2023 and 2022; b) the operations in Guatemala for the period from January 1 to September 10, 2024 and
the years 2023 and 2022; c) the operations in the Dominican Republic for the years 2024, 2023 and 2022; d) Neoris’ operations for the period from January
1 to October 25, 2022; and e) the operations in Costa Rica and El Salvador for the period from January 1 to August 31, 2022.
2024
2023
2022
Revenues
$
737
833
1,127
Cost of sales, operating expenses and other expenses, net
(633)
(732)
(882)
Financial expenses, net, and others
9
25
(22)
Earnings before income tax
113
126
223
Income tax
(109)
(46)
(44)
Result of discontinued operations
4
80
179
Net disposal result
43
—
304
Net result of discontinued operations
$
47
80
483
4.3)
Selected Financial Information by Reportable Segment and Line of Business
Reportable segments
The Company’s operating segments represent the components of Cemex that engage in business activities from which Cemex earns revenues and incurs
expenses, whose operating results are reviewed by Cemex’s Chief Executive Officer (“CEO”) and senior management to make decisions about resources
to be allocated to the segments and assess their performance, and for which discrete financial information is available. A reportable segment represents
an operating segment or an aggregation of operating segments considering certain thresholds, under which entities must report separately any operating
segments which account for 10% or more of combined revenues, both internal and external, 10% or more of combined net profit or loss, depending on the
individual result of the operating segment, and/or 10% or more of the combined assets of all operating segments. In addition, despite the described 10%
threshold not being met individually, entities must report as many individual operating segments as needed to cover at least 75% of the entity’s revenue.
Cemex operates by geography and line of business. Cemex discloses its segment information presenting 12 reportable segments. After discontinued
operations, Cemex’s operations are organized in four regions, each under the supervision of a regional president, as follows: 1) Mexico, comprised of one
operating and reportable segment, 2) United States, comprised of one operating and reportable segment, 3) Europe, Middle East and Africa (“EMEA”),
comprised of 10 operating segments, of which four were aggregated into a single reportable operating segment as described below, and 4) South, Central
America and the Caribbean (“SCA&C”), comprised of 10 operating segments, of which six were aggregated into two reportable operating segments as
described below.
The material accounting policies applied to determine the financial information by reportable segment are consistent with those described in note 29.
147
Cemex 2024 Integrated Report
Notes to the Consolidated
Financial Statements
Contents
Our Company
Our Strategy
Financial Performance
Environmental Excellence
Stakeholder Engagement
Governance
Appendix
Selected Consolidated Financial
Information
• Financial Information
Non-Financial Information
Scope and Boundaries of
This Report
Cemex’s Materiality Assessment
Stakeholder Engagement
Governance
EU Taxonomy
GRI Content Index
International Sustainability
Standards Board (ISSB)
Sustainability Accounting
Standards Board Response (SASB)
Task Force on Climate-related
Financial Disclosure Response
(TCFD)
Terms We Use
Cautionary Statement Regarding
Forward-Looking Statements
Investor, Contact and Feedback
Information
Aggregation criteria
Considering materiality, as well as similar regional and/or economic characteristics, such as: (a) the nature of the products and services, all related to construction
materials and the construction industry, (b) the nature of the production processes, which are the same for cement, ready-mix concrete, aggregates and
urbanization solutions across geographies, (c) the type of customers for their products or services, in all cases construction materials distributors and wholesalers,
governments and big construction firms, and (d) the methods used to distribute their products or provide their services, which are very similar among the
Company’s geographies using both third-party transportation for cement and aggregates and our own mixers fleet for ready-mix, certain operating segments
have been aggregated and presented as single reportable segments. These reportable segments are as follows: a) the “Rest of EMEA” reportable segment
refers to Cemex’s operating segments in the Czech Republic, Croatia, Egypt and the United Arab Emirates; b) the “Rest of SCA&C” reportable segment refers
to Cemex’s operating segments in Puerto Rico, Nicaragua, Jamaica and the Caribbean, excluding the operations of Trinidad Cement Limited (“TCL”); and c)
the “Caribbean TCL” reportable segment refers to the operating segments of TCL and subsidiaries in Trinidad and Tobago, Jamaica, Guyana and Barbados.
The line item “Other activities,” included to reconcile the total of reportable segments with the consolidated amounts from continuing operations, refers to the
following combined transactions: 1) cement trade maritime operations, 2) the non-operating transactions of the Parent Company, other corporate entities and
finance subsidiaries, and 3) other minor subsidiaries with different lines of business.
Selected information of the consolidated statements of income by reportable segment for the years 2024, 2023 and 2022, excluding the share of profits
of equity accounted investments by reportable segment that is included in note 14.1, was as follows:
2024
Sales
(including
intragroup
transactions)
Less:
Intragroup
transactions
External
revenues
Operating
EBITDA
Less:
Depreciation
and
amortization
Operating
earnings
before other
expenses, net
Other
expenses,
net
Financial
expense
Financial
income and
other items, net
Mexico
$
4,881
(136)
4,745
1,475
207
1,268
(26)
(38)
(269)
United States
5,194
—
5,194
1,031
514
517
(4)
(74)
(33)
EMEA
United Kingdom
953
—
953
186
91
95
(6)
(14)
15
France
756
—
756
34
42
(8)
(56)
(16)
1
Germany
476
(52)
424
23
34
(11)
2
(3)
(5)
Poland
543
(1)
542
100
27
73
(1)
(3)
—
Spain
455
(46)
409
60
29
31
(13)
(4)
(1)
Israel
724
—
724
79
37
42
(1)
(8)
1
Rest of EMEA
784
—
784
155
47
108
(8)
(7)
(5)
SCA&C
Colombia 1
468
(2)
466
65
27
38
(11)
(4)
(15)
Panama 1
148
(23)
125
29
17
12
(2)
(1)
—
Caribbean TCL 2
330
(21)
309
87
20
67
(18)
(3)
(4)
Rest of SCA&C 1
302
(1)
301
54
16
38
(5)
(2)
—
Reportable segments
15,732
3,378
1,108
2,270
(149)
(177)
(315)
Other activities 3
468
(300)
142
(442)
142
(378)
(64)
Consolidated
$
16,200
3,078
1,250
1,828
(7)
(555)
(379)
148
Cemex 2024 Integrated Report
Notes to the Consolidated
Financial Statements
Contents
Our Company
Our Strategy
Financial Performance
Environmental Excellence
Stakeholder Engagement
Governance
Appendix
Selected Consolidated Financial
Information
• Financial Information
Non-Financial Information
Scope and Boundaries of
This Report
Cemex’s Materiality Assessment
Stakeholder Engagement
Governance
EU Taxonomy
GRI Content Index
International Sustainability
Standards Board (ISSB)
Sustainability Accounting
Standards Board Response (SASB)
Task Force on Climate-related
Financial Disclosure Response
(TCFD)
Terms We Use
Cautionary Statement Regarding
Forward-Looking Statements
Investor, Contact and Feedback
Information
2023
Sales
(including
intragroup
transactions)
Less:
Intragroup
transactions
External
revenues
Operating
EBITDA
Less:
Depreciation
and
amortization
Operating
earnings
before other
expenses, net
Other
expenses,
net
Financial
expense
Financial
income and
other items, net
Mexico
$
5,060
(205)
4,855
1,488
221
1,267
(59)
(39)
105
United States
5,338
—
5,338
1,040
483
557
(31)
(75)
(30)
EMEA
United Kingdom
992
—
992
193
72
121
(6)
(14)
(17)
France
842
—
842
53
54
(1)
(39)
(15)
(1)
Germany
497
(50)
447
37
32
5
(3)
(2)
(5)
Poland
467
(1)
466
72
24
48
1
(2)
2
Spain
449
(38)
411
71
31
40
3
(2)
1
Israel
794
—
794
90
33
57
5
(6)
1
Rest of EMEA
770
(4)
766
147
48
99
(7)
(6)
(6)
SCA&C
Colombia 1
458
—
458
62
25
37
(19)
(6)
(1)
Panama 1
158
(26)
132
35
17
18
(2)
—
—
Caribbean TCL 2
329
(12)
317
78
20
58
(17)
(2)
(2)
Rest of SCA&C 1
285
—
285
54
11
43
(10)
(1)
1
Reportable segments
16,103
3,420
1,071
2,349
(184)
(170)
48
Other activities 3
451
(271)
119
(390)
(27)
(369)
(32)
Consolidated
$
16,554
3,149
1,190
1,959
(211)
(539)
16
2022
Sales
(including
intragroup
transactions)
Less:
Intragroup
transactions
External
revenues
Operating
EBITDA
Less:
Depreciation
and
amortization
Operating
earnings
before other
expenses, net
Other
expenses,
net
Financial
expense
Financial
income and
other items, net
Mexico
$
3,842
(200)
3,642
1,133
172
961
(69)
(28)
32
United States
5,038
(4)
5,034
762
455
307
(205)
(55)
(21)
EMEA
United Kingdom
982
—
982
195
60
135
(8)
(8)
(8)
France
781
—
781
63
50
13
1
(10)
2
Germany
485
(46)
439
40
28
12
2
(2)
(3)
Poland
419
(4)
415
64
22
42
1
(2)
4
Spain
382
(36)
346
6
28
(22)
(113)
(2)
2
Israel
840
—
840
112
46
66
5
(4)
—
Rest of EMEA
707
(1)
706
116
55
61
(10)
(4)
2
SCA&C
Colombia 1
429
—
429
61
24
37
12
(7)
22
Panama 1
149
(34)
115
28
16
12
(2)
—
—
Caribbean TCL 2
302
(8)
294
74
17
57
(19)
(4)
(1)
Rest of SCA&C 1
271
(1)
270
53
11
42
(2)
(2)
(5)
Reportable segments
14,293
2,707
984
1,723
(407)
(128)
26
Other activities 3
413
(274)
88
(362)
(81)
(377)
146
Consolidated
$
14,706
2,433
1,072
1,361
(488)
(505)
172
1
Until June 2023, after the conclusion of a tender offer and delisting process, Cemex Latam Holdings, S.A. (“CLH”), a company incorporated in Spain, traded its ordinary shares on the Colombian Stock Exchange.
CLH is the indirect holding company of Cemex’s operations in Colombia, Panama, Nicaragua and, until September 10, 2024, of the operations in Guatemala and, until August 31, 2022, of the operations in Costa
Rica and El Salvador. As of December 31, 2024 and 2023, there was a non-controlling interest in CLH of 0.16% and 0.50%, respectively (note 21.4).
2
The shares of TCL trade on the Trinidad and Tobago Stock Exchange. As of December 31, 2024 and 2023, there was a non-controlling interest in TCL of 30.17% of its ordinary shares in both years (note 21.4).
3
In regards of external revenues, refers mainly to trade maritime transactions of cement and clinker carried by Cemex’s trading unit and, in the rest of the captions, refers to Cemex’s corporate activities.
149
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Contents
Our Company
Our Strategy
Financial Performance
Environmental Excellence
Stakeholder Engagement
Governance
Appendix
Selected Consolidated Financial
Information
• Financial Information
Non-Financial Information
Scope and Boundaries of
This Report
Cemex’s Materiality Assessment
Stakeholder Engagement
Governance
EU Taxonomy
GRI Content Index
International Sustainability
Standards Board (ISSB)
Sustainability Accounting
Standards Board Response (SASB)
Task Force on Climate-related
Financial Disclosure Response
(TCFD)
Terms We Use
Cautionary Statement Regarding
Forward-Looking Statements
Investor, Contact and Feedback
Information
Selected information of the consolidated statements of financial position by reportable segment
As of December 31, 2024 and 2023, the selected statement of financial position information by reportable segment was as follows:
2024
Associates and
joint ventures
Other segment
assets
Total assets
Total liabilities
Net assets by
segment
Capital
expenditures 1
Mexico
$
—
4,155
4,155
1,693
2,462
315
United States
285
12,700
12,985
2,903
10,082
486
EMEA
United Kingdom
6
1,386
1,392
848
544
65
France
38
820
858
412
446
52
Germany
3
487
490
279
211
36
Poland
—
426
426
138
288
38
Spain
—
637
637
234
403
41
Israel
—
895
895
540
355
57
Rest of EMEA
10
732
742
316
426
79
SCA&C
Colombia
—
954
954
280
674
105
Panama
—
281
281
73
208
13
Caribbean TCL
—
511
511
238
273
50
Rest of SCA&C
—
234
234
85
149
21
Reportable segments
342
24,218
24,560
8,039
16,521
1,358
Other activities
411
2,063
2,474
6,692
(4,218)
22
Assets held for sale
—
265
265
91
174
—
Consolidated
$
753
26,546
27,299
14,822
12,477
1,380
2023
Associates and
joint ventures
Other segment
assets
Total assets
Total liabilities
Net assets by
segment
Capital
expenditures 1
Mexico
$
—
5,381
5,381
2,052
3,329
264
United States
216
12,782
12,998
2,770
10,228
521
EMEA
United Kingdom
6
1,484
1,490
960
530
107
France
41
922
963
467
496
44
Germany
3
506
509
289
220
47
Poland
—
415
415
153
262
44
Spain
—
666
666
212
454
38
Philippines
—
795
795
135
660
85
Israel
—
808
808
507
301
41
Rest of EMEA
11
852
863
329
534
75
SCA&C
Colombia
—
1,007
1,007
308
699
76
Panama
—
292
292
78
214
13
Caribbean TCL
—
478
478
207
271
18
Dominican Republic
—
233
233
95
138
16
Rest of SCA&C
—
280
280
111
169
25
Reportable segments
277
26,901
27,178
8,673
18,505
1,414
Other activities
452
754
1,206
7,644
(6,438)
3
Assets held for sale
—
49
49
—
49
—
Consolidated
$
729
27,704
28,433
16,317
12,116
1,417
1
Capital expenditures represent: a) the purchases of property, machinery and equipment, b) stripping costs, as well as c) assets for the right-of-use incurred during the respective period (notes 15.1 and 15.2)
and exclude increases in assets related to asset retirement obligations (note 18.3).
150 Cemex 2024 Integrated Report
Notes to the Consolidated
Financial Statements
Contents
Our Company
Our Strategy
Financial Performance
Environmental Excellence
Stakeholder Engagement
Governance
Appendix
Selected Consolidated Financial
Information
• Financial Information
Non-Financial Information
Scope and Boundaries of
This Report
Cemex’s Materiality Assessment
Stakeholder Engagement
Governance
EU Taxonomy
GRI Content Index
International Sustainability
Standards Board (ISSB)
Sustainability Accounting
Standards Board Response (SASB)
Task Force on Climate-related
Financial Disclosure Response
(TCFD)
Terms We Use
Cautionary Statement Regarding
Forward-Looking Statements
Investor, Contact and Feedback
Information
Revenue information by line of business and reportable segment
The Company’s main activities are oriented to the construction industry, mainly through the production, marketing, sale and distribution of cement, ready-
mix concrete, aggregates, urbanization solutions and other construction materials and services. Revenues including intragroup transactions and external
customers by line of business and reportable segment for the years ended December 31, 2024, 2023 and 2022, were as follows:
2024
Cement
Concrete
Aggregates
Urbanization
solutions
Others
Eliminations
External
revenues
Mexico
$
3,207
1,434
393
1,077
10
(1,376)
4,745
United States
1,905
2,905
1,374
658
1
(1,649)
5,194
EMEA
United Kingdom
285
292
379
208
24
(235)
953
France
—
568
339
17
—
(168)
756
Germany
210
141
84
67
54
(132)
424
Poland
381
197
52
8
1
(97)
542
Spain
325
117
45
27
—
(105)
409
Israel
—
592
190
113
—
(171)
724
Rest of EMEA
540
318
57
18
19
(168)
784
SCA&C
Colombia
318
178
50
56
24
(160)
466
Panama
112
33
8
15
4
(47)
125
Caribbean TCL
316
5
9
1
3
(25)
309
Rest of SCA&C
269
9
5
25
1
(8)
301
Reportable segments
7,868
6,789
2,985
2,290
141
(4,341)
15,732
Other activities
—
—
—
—
468
—
468
Consolidated
$
16,200
2023
Cement
Concrete
Aggregates
Urbanization
solutions
Others
Eliminations
External
revenues
Mexico
$
3,378
1,397
399
1,163
13
(1,495)
4,855
United States
1,988
3,070
1,347
694
14
(1,775)
5,338
EMEA
United Kingdom
315
344
376
201
22
(266)
992
France
—
656
356
17
—
(187)
842
Germany
227
171
91
38
62
(142)
447
Poland
331
169
44
6
—
(84)
466
Spain
326
119
41
25
—
(100)
411
Israel
—
662
200
116
2
(186)
794
Rest of EMEA
551
288
52
17
23
(165)
766
SCA&C
Colombia
316
163
48
54
22
(145)
458
Panama
128
30
9
12
4
(51)
132
Caribbean TCL
316
5
8
1
4
(17)
317
Rest of SCA&C
253
9
5
25
1
(8)
285
Reportable segments
8,129
7,083
2,976
2,369
167
(4,621)
16,103
Other activities
—
—
—
—
451
—
451
Consolidated
$
16,554
151
Cemex 2024 Integrated Report
Notes to the Consolidated
Financial Statements
Contents
Our Company
Our Strategy
Financial Performance
Environmental Excellence
Stakeholder Engagement
Governance
Appendix
Selected Consolidated Financial
Information
• Financial Information
Non-Financial Information
Scope and Boundaries of
This Report
Cemex’s Materiality Assessment
Stakeholder Engagement
Governance
EU Taxonomy
GRI Content Index
International Sustainability
Standards Board (ISSB)
Sustainability Accounting
Standards Board Response (SASB)
Task Force on Climate-related
Financial Disclosure Response
(TCFD)
Terms We Use
Cautionary Statement Regarding
Forward-Looking Statements
Investor, Contact and Feedback
Information
2022
Cement
Concrete
Aggregates
Urbanization
solutions
Others
Eliminations
External
revenues
Mexico
$
2,663
925
261
843
14
(1,064)
3,642
United States
2,017
2,871
1,202
697
12
(1,765)
5,034
EMEA
United Kingdom
312
329
371
206
27
(263)
982
France
—
622
332
15
—
(188)
781
Germany
220
186
81
32
71
(151)
439
Poland
282
160
41
4
1
(73)
415
Spain
281
99
34
25
—
(93)
346
Israel
—
718
213
97
21
(209)
840
Rest of EMEA
504
260
48
18
26
(150)
706
SCA&C
Colombia
296
137
40
62
19
(125)
429
Panama
119
27
7
13
2
(53)
115
Caribbean TCL
297
4
6
2
5
(20)
294
Rest of SCA&C
245
9
3
19
1
(7)
270
Reportable segments
7,236
6,347
2,639
2,033
199
(4,161)
14,293
Other activities
—
—
—
—
413
—
413
Consolidated
$
14,706
5)
Cost of Sales
Represents the production cost of inventories at the moment of sale and includes depreciation, amortization and depletion of assets involved in production,
expenses related to storage in production plants, freight expenses of raw material in plants and delivery expenses of Cemex’s ready-mix concrete business.
The detail of the consolidated cost of sales by nature for the years 2024, 2023 and 2022 is as follows:
2024
2023
2022
Raw materials and goods for resale
$
4,994
5,228
4,885
Payroll
1,798
1,711
1,452
Electricity, fuels and other services
1,457
1,593
1,439
Depreciation and amortization
1,023
985
894
Maintenance, repairs and supplies
959
918
770
Transportation costs
527
456
661
Other production costs and change in inventory
3
88
120
$
10,761
10,979
10,221
152
Cemex 2024 Integrated Report
Notes to the Consolidated
Financial Statements
Contents
Our Company
Our Strategy
Financial Performance
Environmental Excellence
Stakeholder Engagement
Governance
Appendix
Selected Consolidated Financial
Information
• Financial Information
Non-Financial Information
Scope and Boundaries of
This Report
Cemex’s Materiality Assessment
Stakeholder Engagement
Governance
EU Taxonomy
GRI Content Index
International Sustainability
Standards Board (ISSB)
Sustainability Accounting
Standards Board Response (SASB)
Task Force on Climate-related
Financial Disclosure Response
(TCFD)
Terms We Use
Cautionary Statement Regarding
Forward-Looking Statements
Investor, Contact and Feedback
Information
6)
Operating Expenses
Administrative and selling expenses represent the expenses associated with personnel, services and equipment, including depreciation and amortization,
related to managerial and back-office activities of the Company’s management, as well as selling activities, respectively. Distribution and logistics expenses
refer to expenses of storage at points of sales, including depreciation and amortization, as well as freight expenses of finished products between plants and
points of sale and freight expenses between points of sales and the customers’ facilities.
Consolidated operating expenses by function during 2024, 2023 and 2022 are as follows:
2024
2023
2022
Administrative expenses 1, 2
$
1,336
1,354
1,046
Selling expenses 2
438
393
344
Administrative and selling expenses
1,774
1,747
1,390
Distribution and logistics expenses
1,837
1,869
1,734
Operating expenses
$
3,611
3,616
3,124
1
All significant research and development activities are executed by several internal areas of Cemex as part of their daily activities. In 2024, 2023 and 2022, the total combined expenses of these departments
recognized within administrative expenses were $59, $55, and $42, respectively.
2
In 2024, 2023 and 2022, administrative expenses include depreciation and amortization of $173, $161 and $138, respectively, and selling expenses include depreciation and amortization of $54 in 2024, $44
in 2023 and $40 in 2022.
Consolidated operating expenses during 2024, 2023 and 2022 by nature are as follows:
2024
2023
2022
Transportation costs
$
1,667
1,715
1,592
Payroll
1,125
1,096
935
Professional legal, accounting and advisory services
274
277
185
Depreciation and amortization
227
205
178
Maintenance, repairs and supplies
111
98
83
Office supplies, utilities and rental expenses
80
85
71
Expected credit losses
15
11
9
Other operating expenses
112
129
71
$
3,611
3,616
3,124
7)
Other Expenses, Net
The detail of the caption “Other expenses, net” for the years 2024, 2023 and 2022 is as follows:
2024
2023
2022
Impairment losses (notes 15.1, 16.1 and 16.2)
$
(122)
(43)
(442)
Results from the sale of assets and others 1
125
(166)
(26)
Restructuring costs 2
(10)
(2)
(20)
$
(7)
(211)
(488)
1
In 2024, includes a gain of $139 related to the sale of Cemex’s 34.8% equity interest in Neoris. In 2024, 2023 and 2022, includes expenses of $9, $3 and $1, respectively, in connection with property damage
related to natural disasters (note 24.3). In addition, in 2022 includes a gain of $48 resulting from the remeasurement at fair value of Cemex’s previous controlling interest in Neoris after the loss of control.
2
Restructuring costs mainly refer to severance payments and expenses related to the definitive closing of operating sites.
153
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Financial Performance
Environmental Excellence
Stakeholder Engagement
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Appendix
Selected Consolidated Financial
Information
• Financial Information
Non-Financial Information
Scope and Boundaries of
This Report
Cemex’s Materiality Assessment
Stakeholder Engagement
Governance
EU Taxonomy
GRI Content Index
International Sustainability
Standards Board (ISSB)
Sustainability Accounting
Standards Board Response (SASB)
Task Force on Climate-related
Financial Disclosure Response
(TCFD)
Terms We Use
Cautionary Statement Regarding
Forward-Looking Statements
Investor, Contact and Feedback
Information
8)
Financial Items
8.1)
Financial Expense
Consolidated financial expenses represent the interest on Cemex’s debt instruments measured using the effective interest rate and, in 2024, 2023 and
2022, include $74, $70 and $62 of interest expense related to lease contracts (notes 15.2 and 17.2).
8.2)
Financial Income and Other Items, Net
The detail of financial income and other items, net in 2024, 2023 and 2022 was as follows:
2024
2023
2022
Foreign exchange results
$
(353)
130
96
Financial income
36
37
25
Results from financial instruments, net (notes 14.2 and 17.4)
(4)
(65)
99
Net interest cost of defined benefit liabilities (note 19)
(40)
(44)
(28)
Effects of amortized cost on assets and liabilities
(53)
(42)
(32)
Others
35
—
12
$
(379)
16
172
9)
Cash and Cash Equivalents
The balance in this caption is comprised of available amounts of cash and cash equivalents, represented by low-risk, highly liquid short-term investments
readily convertible into known amounts of cash, including overnight investments, which yield fixed returns and have maturities of less than three months
from the investment date. These fixed-income investments are recorded at cost plus accrued interest. Accrued interest is included in the statement of
income as part of “Financial income and other items, net.”
As of December 31, 2024 and 2023, consolidated cash and cash equivalents consisted of:
2024
2023
Cash and bank accounts
$
330
363
Fixed-income securities and other cash equivalents
534
261
$
864
624
10)
Trade Accounts Receivable
As of December 31, 2024 and 2023, consolidated trade accounts receivable consisted of:
2024
2023
Trade accounts receivable
$
1,659
1,841
Allowances for expected credit losses
(77)
(90)
$
1,582
1,751
As of December 31, 2024 and 2023, trade accounts receivable include receivables of $755 and $848, respectively, sold in several countries under
outstanding trade accounts receivable securitization programs and/or factoring programs with recourse, in which generally, Cemex effectively does not
surrender full control or the majority of risks and rewards associated with the trade accounts receivable sold. Therefore, the trade accounts receivable sold
were not derecognized from the statement of financial position and the funded amounts to Cemex as of December 31, 2024 and 2023 of $658 and $678,
respectively, were recognized within the line item of “Other financial obligations” (note 17.2).
The discount granted to the acquirers of the trade accounts receivable is recorded as financial expense and amounted to $52 in 2024, $52 in 2023 and $24
in 2022. Cemex’s securitization programs are usually negotiated for periods of one to two years and are usually renewed at their maturity.
154
Cemex 2024 Integrated Report
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Contents
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Our Strategy
Financial Performance
Environmental Excellence
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Appendix
Selected Consolidated Financial
Information
• Financial Information
Non-Financial Information
Scope and Boundaries of
This Report
Cemex’s Materiality Assessment
Stakeholder Engagement
Governance
EU Taxonomy
GRI Content Index
International Sustainability
Standards Board (ISSB)
Sustainability Accounting
Standards Board Response (SASB)
Task Force on Climate-related
Financial Disclosure Response
(TCFD)
Terms We Use
Cautionary Statement Regarding
Forward-Looking Statements
Investor, Contact and Feedback
Information
Additionally, as of December 31, 2024, there are trade accounts receivable sold under factoring programs that qualify for derecognition for $54 which,
considering that Cemex surrendered control and the majority of risks and rewards associated with the amount sold, the balance was derecognized from the
statement of financial position
As of December 31, 2024, the balances of trade accounts receivable and the allowance for Expected Credit Losses (“ECL”) were as follows:
Accounts
receivable
ECL
allowance
ECL average
rate
Mexico
$
332
29
8.7%
United States
542
8
1.5%
EMEA
701
34
4.9%
SCA&C
72
6
8.3%
Others
12
—
—
$
1,659
77
Changes in the allowance for ECL in 2024, 2023 and 2022, were as follows:
2024
2023
2022
Allowances for expected credit losses at beginning of period
$
90
91
101
Charged to selling expenses
15
11
9
Deductions
(17)
(15)
(21)
Reclassification to assets held for sale
(6)
—
—
Foreign currency translation effects
(5)
3
2
Allowances for expected credit losses at end of period
$
77
90
91
11)
Other Accounts Receivable
As of December 31, 2024 and 2023, consolidated other accounts receivable consisted of:
2024
2023
Advances of income taxes and refundable taxes
$
494
472
Non-trade accounts receivable 1
87
102
Current portion of assets from valuation of derivative financial instruments
64
6
Interest and notes receivable
56
54
Loans to employees and others
14
16
$
715
650
1
Non-trade accounts receivable are mainly attributable to the sale of assets.
155
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Financial Performance
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Selected Consolidated Financial
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• Financial Information
Non-Financial Information
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Cemex’s Materiality Assessment
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EU Taxonomy
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Sustainability Accounting
Standards Board Response (SASB)
Task Force on Climate-related
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Cautionary Statement Regarding
Forward-Looking Statements
Investor, Contact and Feedback
Information
12)
Inventories
Inventories are valued using the lower of cost or net realizable value. The weighted average cost of inventories includes expenditures incurred in acquiring
the inventories, production or conversion costs and other costs incurred in bringing them to their existing location and condition. Inventory balances are
subject to impairment. When an impairment situation arises, the related inventory is adjusted to its net realizable value against “Cost of sales.” Advances to
suppliers of inventory are presented as part of other current assets.
As of December 31, 2024 and 2023, the consolidated balances of inventories were summarized as follows:
2024
2023
Finished goods
$
392
461
Materials and spare parts
383
537
Raw materials
377
370
Work-in-process
266
330
Inventory in transit
67
91
$
1,485
1,789
For the years ended December 31, 2024, 2023 and 2022, Cemex recognized within “Cost of sales” in the statements of income, inventory impairment
losses of $7, $7 and $10, respectively.
13)
Assets Held for Sale and Other Current Assets
As of December 31, 2024 and 2023, assets held for sale and other current assets were detailed as follows:
2024
2023
Assets held for sale
$
265
49
Other current assets
105
142
$
370
191
As of December 31, 2024 and 2023, other current assets presented above are mainly comprised of advance payments to inventory suppliers.
As of December 31, 2024 and 2023, the caption of assets held for sale in the table above, which are measured at the lower of their estimated realizable
value, less costs to sell, and their carrying amounts, as well as liabilities directly related with such assets are detailed as follows:
2024
2023
Assets
Liabilities
Net Assets
Assets
Liabilities
Net Assets
Dominican Republic (note 4.2)
$
229
91
138
$
—
—
—
Other assets held for sale
36
—
36
49
—
49
$
265
91
174
$
49
—
49
156
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Financial Performance
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Cemex’s Materiality Assessment
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14)
Investments in Associates and Joint Ventures, Other Investments and Non-Current Accounts Receivable
14.1)
Investments in Associates and Joint Ventures
As of December 31, 2024 and 2023, the investments in common shares of associates and joint ventures, which are accounted under the equity method,
were as follows:
Associates
Activity
Country
%
2024
2023
Camcem, S.A. de C.V.
Cement
Mexico
40.1
$
393
364
Concrete Supply Co. LLC
Concrete
United States
40.0
111
103
Lehigh White Cement Company
Cement
United States
36.8
85
83
Couch Aggregates, LLC 1
Aggregates
United States
49.0
55
—
Neoris N.V. 2
Technology
The Netherlands
34.8
—
69
Joint ventures
Société d’Exploitation de Carrières
Aggregates
France
50.0
23
24
Société Méridionale de Carrières
Aggregates
France
33.3
12
13
Other companies
—
—
—
74
73
$
753
729
Out of which:
Acquisition cost
$
388
330
Equity method recognition
365
399
1
On July 12, 2024, Cemex acquired a non-controlling interest in a newly formed entity which specializes in aggregates production and marine distribution in the Mid-South region of the United States and operates
seven aggregate pits and four marine terminals. This transaction is part of Cemex’s ongoing strategy to accelerate growth and expand its aggregates business in the country, increasing Cemex’s presence in this
growing market.
2
On November 1, 2024, Cemex sold its 34.8% equity interest in Neoris (note 4.2)
The combined condensed statements of financial position of associates and joint ventures as of December 31, 2024 and 2023 are set forth below:
2024
2023
Current assets
$
1,755
1,761
Non-current assets
2,108
1,877
Total assets 1
3,863
3,638
Current liabilities
492
468
Non-current liabilities
859
850
Total liabilities 1
1,351
1,318
Total net assets
$
2,512
2,320
1
Out of total assets in 2024 and 2023 of the table above, Camcem, S.A. de C.V. (“Camcem”), holding company of GCC, S.A.B. de C.V., represented 78% and 76%, respectively. In addition, out of total liabilities,
Camcem represented 79% in 2024 and 77% in 2023.
Combined selected information of the statements of income of associates and joint ventures in 2024, 2023 and 2022 is set forth below:
2024
2023
2022
Revenues
$
2,098
2,410
2,319
Operating earnings
440
535
398
Income before income tax
320
394
268
Net income 1
211
268
186
1
Out of net income in the table above, caption that Cemex accounts under the equity method, Camcem represented 68% in 2024, 59% in 2023 and 53% in 2022.
157
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Our Strategy
Financial Performance
Environmental Excellence
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Selected Consolidated Financial
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• Financial Information
Non-Financial Information
Scope and Boundaries of
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Cemex’s Materiality Assessment
Stakeholder Engagement
Governance
EU Taxonomy
GRI Content Index
International Sustainability
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Sustainability Accounting
Standards Board Response (SASB)
Task Force on Climate-related
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Investor, Contact and Feedback
Information
The share of associates and joint ventures by reportable segment in the statements of income for 2024, 2023 and 2022 are detailed as follows:
2024
2023
2022
Mexico
$
68
65
39
United States
17
21
17
EMEA
8
10
8
Corporate and others
—
2
(34)
$
93
98
30
As of December 31, 2024 and 2023, Cemex did not have written put options for the acquisition of associates and joint ventures.
14.2)
Other Investments and Non-Current Accounts Receivable
As of December 31, 2024 and 2023, consolidated other investments and non-current accounts receivable were summarized as follows:
2024
2023
Non-current accounts receivable 1
$
191
272
Non-current portion of assets from valuation of derivative financial instruments (note 17.4)
60
64
Investments in strategic equity securities
4
3
Investments at fair value through the statements of income
1
1
$
256
340
1
Includes, among other items: a) accounts receivable from equity investments and joint ventures of $44 in 2024 and $78 in 2023, b) advances to suppliers of fixed assets of $28 in 2024 and $41 in 2023, c)
employee prepaid compensation of $11 in 2024 and $8 in 2023 and, d) warranty deposits of $11 in 2024 and $24 in 2023.
15)
Property, Machinery and Equipment, Net and Assets for the Right-Of-Use, Net
As of December 31, 2024 and 2023, property, machinery and equipment, net and assets for the right-of-use, net were summarized as follows:
2024
2023
Property, machinery and equipment, net
$
10,152
11,272
Assets for the right-of-use, net
1,088
1,194
$
11,240
12,466
15.1)
Property, Machinery and Equipment, Net
As of December 31, 2024, the average useful lives by category of fixed assets, which are reviewed at each reporting date, were as follows:
Years
Administrative buildings
31
Industrial buildings
25
Machinery and equipment in plant
17
Ready-mix trucks and motor vehicles
11
Office equipment and other assets
7
As of December 31, 2024, to the best of its knowledge, management considers that its commitments and actions in relation to climate change currently do
not affect the estimated average useful lives of its property, machinery and equipment described above (note 24.3).
158
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Selected Consolidated Financial
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• Financial Information
Non-Financial Information
Scope and Boundaries of
This Report
Cemex’s Materiality Assessment
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Governance
EU Taxonomy
GRI Content Index
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Sustainability Accounting
Standards Board Response (SASB)
Task Force on Climate-related
Financial Disclosure Response
(TCFD)
Terms We Use
Cautionary Statement Regarding
Forward-Looking Statements
Investor, Contact and Feedback
Information
As of December 31, 2024 and 2023, consolidated property, machinery and equipment, net and the changes in this line item during 2024 and 2023, were
as follows:
2024
Land and mineral
reserves
Building
Machinery and
equipment
Construction in
progress 2
Total
Cost at beginning of period
$
5,295
2,636
12,702
1,931
22,564
Accumulated depreciation and depletion
(1,495)
(1,657)
(8,140)
—
(11,292)
Net book value at beginning of period
3,800
979
4,562
1,931
11,272
Capital expenditures
65
99
695
182
1,041
Stripping costs 1
49
—
—
—
49
Total capital expenditures
114
99
695
182
1,090
Ordinary sales 3
(42)
(4)
(44)
—
(90)
Divestitures and reclassifications 4
(67)
(62)
(205)
(359)
(693)
Business combinations (note 4.1)
—
—
2
—
2
Depreciation and depletion for the period
(34)
(33)
(738)
—
(805)
Impairment losses (note 7)
(36)
(26)
(60)
—
(122)
Asset retirement obligations (note 18.3)
—
15
48
—
63
Foreign currency translation effects
(244)
(77)
112
(356)
(565)
Cost at end of period
5,120
2,426
11,962
1,398
20,906
Accumulated depreciation and depletion
(1,629)
(1,535)
(7,590)
—
(10,754)
Net book value at end of period
$
3,491
891
4,372
1,398
10,152
159
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Environmental Excellence
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Selected Consolidated Financial
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• Financial Information
Non-Financial Information
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Cemex’s Materiality Assessment
Stakeholder Engagement
Governance
EU Taxonomy
GRI Content Index
International Sustainability
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Sustainability Accounting
Standards Board Response (SASB)
Task Force on Climate-related
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Information
2023
Land and mineral
reserves
Building
Machinery and
equipment
Construction in
progress 2
Total
Cost at beginning of period
$
4,843
2,342
11,663
1,668
20,516
Accumulated depreciation and depletion
(1,337)
(1,513)
(7,510)
—
(10,360)
Net book value at beginning of period
3,506
829
4,153
1,668
10,156
Capital expenditures
33
86
720
200
1,039
Stripping costs 1
37
—
—
—
37
Total capital expenditures
70
86
720
200
1,076
Ordinary sales 3
(31)
(2)
(75)
—
(108)
Business combinations (note 4.1)
13
4
22
—
39
Depreciation and depletion for the period
(140)
(74)
(628)
—
(842)
Impairment losses (note 7)
(16)
(2)
(18)
—
(36)
Asset retirement obligations (note 18.3)
—
20
44
—
64
Foreign currency translation effects
398
118
344
63
923
Cost at end of period
5,295
2,636
12,702
1,931
22,564
Accumulated depreciation and depletion
(1,495)
(1,657)
(8,140)
—
(11,292)
Net book value at end of period
$
3,800
979
4,562
1,931
11,272
1
All waste removal costs or stripping costs incurred in the operative phase of surface mines to access the mineral reserves are recognized as part of their carrying amount. The capitalized amounts are subsequently
amortized over the expected useful life of exposed ore body based on the units-of-production method.
2
As of December 31, 2024, in connection with the cement plant located in the municipality of Maceo in Colombia (the “Maceo Plant”) with an annual capacity of 1.3 million tons of cement, Cemex is performing
the last infrastructure works required at the Maceo Plant to initiate commercial operations during 2025, including the access road to the plant, among others. There are also several ongoing processes for the
proper operation of the assets and other legal proceedings (note 25.3). As of December 31, 2024, the carrying amount of the Maceo Plant is for an amount in Colombian Pesos equivalent to $335.
3
In 2024 includes sales of non-strategic fixed assets in the United States and the United Kingdom for $69 and $7, respectively, among others. In 2023 includes sales of non-strategic fixed assets in the United
States and France for $23 and $16, respectively, among others.
4
In 2024 includes the reclassification to assets held for sale of the Dominican Republic operations for $115, as well as the divestiture of the operations in the Philippines and Guatemala for $542 and $36,
respectively (note 4.2).
During the years ended December 31, 2024, 2023 and 2022 impairment losses of fixed assets by operating segment are as follows:
2024
2023
2022
France
$
45
6
—
United States
24
3
26
Caribbean TCL
16
7
14
Spain
15
2
23
United Kingdom
9
5
10
Others
13
13
4
$
122
36
77
In connection with the impairment losses presented in the table above, recognized within the line item of “Other expenses, net” (notes 7 and 29.5).
160 Cemex 2024 Integrated Report
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Our Strategy
Financial Performance
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Appendix
Selected Consolidated Financial
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• Financial Information
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EU Taxonomy
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Sustainability Accounting
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Financial Disclosure Response
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Terms We Use
Cautionary Statement Regarding
Forward-Looking Statements
Investor, Contact and Feedback
Information
The impairment losses of fixed assets recognized in 2024, 2023 and 2022 relate mainly to: a) closing and/or reduction of operations resulting from adjusting
the supply to current demand conditions; b) a change of operating model of certain assets; c) material decrease in real estate prices; and d) inactivity over
long periods. In addition, during 2022, certain impairment losses were associated also with some negative effects of the COVID-19 Pandemic initiated in
2020, as a result of which, Cemex closed certain assets that will remain closed for the foreseeable future in relation to the estimated sales volumes and the
Company’s ability to supply demand by achieving efficiencies in other operating assets. During 2024, 2023 and 2022 there were no reversal of impairment
charges recognized in prior years.
15.2)
Assets for the Right-of-Use, Net
As of December 31, 2024 and 2023, consolidated assets for the right-of-use, net and the changes in this caption during 2024 and 2023, were as follows:
2024
Land
Buildings
Machinery and
equipment
Others
Total
Assets for the right-of-use at beginning of period
$
476
356
1,722
58
2,612
Accumulated depreciation
(155)
(234)
(985)
(44)
(1,418)
Net book value at beginning of period
321
122
737
14
1,194
Additions of new leases
24
76
171
19
290
Cancellations and remeasurements, net
(22)
(2)
(16)
(2)
(42)
Divestitures and reclassifications (note 4.2)
(34)
(3)
(4)
—
(41)
Business combinations (note 4.1)
6
—
—
—
6
Depreciation
(34)
(36)
(177)
(13)
(260)
Foreign currency translation effects
(16)
18
(67)
6
(59)
Assets for the right-of-use at end of period
456
365
1,571
69
2,461
Accumulated depreciation
(211)
(190)
(927)
(45)
(1,373)
Net book value at end of period
$
245
175
644
24
1,088
2023
Land
Buildings
Machinery and
equipment
Others
Total
Assets for the right-of-use at beginning of period
$
439
335
1,570
55
2,399
Accumulated depreciation
(142)
(203)
(894)
(32)
(1,271)
Net book value at beginning of period
297
132
676
23
1,128
Additions of new leases
36
9
284
12
341
Cancellations and remeasurements, net
(10)
(4)
(14)
(1)
(29)
Depreciation
(14)
(32)
(135)
(12)
(193)
Foreign currency translation effects
12
17
(74)
(8)
(53)
Assets for the right-of-use at end of period
476
356
1,722
58
2,612
Accumulated depreciation
(155)
(234)
(985)
(44)
(1,418)
Net book value at end of period
$
321
122
737
14
1,194
For the years ended December 31, 2024, 2023 and 2022, the combined rental expense related with short-term leases, leases of low-value assets and
variable lease payments were $128, $135 and $106, respectively, and were recognized in cost of sales and operating expenses, as applicable. During the
reported periods, Cemex did not have any material revenue from sub-leasing activities.
161
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16)
Goodwill and Intangible Assets, Net
16.1)
Balances and Changes During the Period
As of December 31, 2024 and 2023, consolidated goodwill, intangible assets and deferred charges were summarized as follows:
2024
2023
Cost
Accumulated
amortization
Carrying
amount
Cost
Accumulated
amortization
Carrying
amount
Intangible assets of indefinite useful life:
Goodwill
$
7,441
—
7,441
$
7,674
—
7,674
Intangible assets of definite useful life:
Extraction rights
1,796
(506)
1,290
1,768
(479)
1,289
Internally developed software
1,137
(734)
403
973
(639)
334
Customer relationships
—
—
—
196
(196)
—
Mining projects
49
(8)
41
47
(7)
40
Industrial property and trademarks
29
(17)
12
32
(16)
16
Other intangible assets
390
(216)
174
357
(180)
177
$
10,842
(1,481)
9,361
$
11,047
(1,517)
9,530
Changes in consolidated goodwill for the years ended December 31, 2024 and 2023, were as follows:
2024
2023
Balance at beginning of period
$
7,674
7,538
Divestitures and reclassifications (note 4.2)
(92)
—
Business combinations (note 4.1)
5
8
Foreign currency translation effects
(146)
128
Balance at end of period
$
7,441
7,674
Changes in intangible assets of definite life in 2024 and 2023, were as follows:
2024
Extraction
rights
Internally developed
software 1
Mining
projects
Industrial property
and trademarks
Others
Total
Balance at beginning of period
$
1,289
334
40
16
177
1,856
Amortization for the period
(47)
(103)
(1)
(1)
(33)
(185)
Additions (disposals), net 1
55
188
3
(2)
52
296
Foreign currency translation effects
(7)
(16)
(1)
(1)
(22)
(47)
Balance at the end of period
$
1,290
403
41
12
174
1,920
2023
Extraction
rights
Internally developed
software 1
Mining
projects
Industrial property
and trademarks
Others
Total
Balance at beginning of period
$
1,277
286
33
17
142
1,755
Amortization for the period
(42)
(91)
(1)
(1)
(20)
(155)
Impairment (note 7)
(7)
—
—
—
—
(7)
Additions (disposals), net 1
2
148
7
2
48
207
Business combinations
26
—
—
—
—
26
Foreign currency translation effects
33
(9)
1
(2)
7
30
Balance at the end of period
$
1,289
334
40
16
177
1,856
1
Includes the capitalized direct costs incurred in the development stage of internal-use software, such as professional fees, direct labor and related travel expenses. The capitalized amounts are amortized to the
statement of income over a period ranging from 3 to 5 years.
162
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• Financial Information
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Cemex’s Materiality Assessment
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EU Taxonomy
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Sustainability Accounting
Standards Board Response (SASB)
Task Force on Climate-related
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(TCFD)
Terms We Use
Cautionary Statement Regarding
Forward-Looking Statements
Investor, Contact and Feedback
Information
16.2)
Analysis of Goodwill Impairment
Cemex mandatorily analyses the possible impairment of goodwill at least once a year during the last quarter, or additionally, on any interim date when
impairment indicators exist, by means of determining the value in use of its groups of Cash Generating Units (“CGUs”) to which goodwill balances have
been allocated. The value in use represents the discounted cash flow projections of each CGU for the next five years plus a terminal value using risk adjusted
discount rates.
In 2024, Cemex did not determine goodwill impairment losses, considering that in most cases, Cemex’s cash flows projections by reportable operating
segment to which goodwill balances have been allocated slightly improved as compared to 2023, mainly due to reductions in the applicable discount rates,
which on weighted average decreased 70 basis points (0.7%) against 2023, while the generation of Operating EBITDA is generally expected to remain flat
considering geopolitical uncertainty among other factors.
In 2023, Cemex did not determine goodwill impairment losses considering the increase in the Company’s projected cash flows linked to the improved
generation of Operating EBITDA against 2022 in the majority of the reportable operating segments to which goodwill balances have been allocated and
the positive outlook at the time for the following years, partly offset by the general increase in the applicable discount rates as compared to 2022, which on
average increased 120 basis points or 1.2%.
In 2022, as part of the mandatory impairment tests during the fourth quarter, Cemex recognized within “Other expenses, net” (note 7), non-cash goodwill
impairment losses for an aggregate amount of $365, of which, $273 related to the operating segment in the United States and $92 related to the operating
segment in Spain. In both cases, the book value of the operating segments exceeded their corresponding value in use. The impairment losses in 2022 were
mainly related to the significant increase in the discount rates as compared to 2021 and the resulting significant decrease in the Company’s projected cash
flows in these segments considering the global high inflationary environment at the time, which increased the risk-free rates, and the material increase in the
funding cost observed in the industry during the period. These negative effects more than offset the expected improvements in the estimated Operating
EBITDA generation in both the United States and Spain.
As of December 31, 2024 and 2023, goodwill balances allocated by operating segment, net of cumulative impairment adjustments, were as follows:
2024
2023
Mexico
$
359
441
United States
6,176
6,176
EMEA
United Kingdom
259
264
France
194
207
Spain
55
59
Philippines 1
—
82
Rest of EMEA 2
50
50
SCA&C
Colombia
220
254
Caribbean TCL
83
83
Rest of SCA&C 3
45
58
$
7,441
7,674
1
In December 2024, Cemex sold its operations and assets in the Philippines (note 4.2).
2
This caption refers to the operating segments in Israel, the Czech Republic, Egypt and Germany.
3
This caption refers to the operating segments in the Caribbean and Panama. In 2024, goodwill associated with the Company’s operations in the Dominican Republic of $13 was reclassified to “Assets held for
sale” (note 4.2).
163
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Our Strategy
Financial Performance
Environmental Excellence
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Appendix
Selected Consolidated Financial
Information
• Financial Information
Non-Financial Information
Scope and Boundaries of
This Report
Cemex’s Materiality Assessment
Stakeholder Engagement
Governance
EU Taxonomy
GRI Content Index
International Sustainability
Standards Board (ISSB)
Sustainability Accounting
Standards Board Response (SASB)
Task Force on Climate-related
Financial Disclosure Response
(TCFD)
Terms We Use
Cautionary Statement Regarding
Forward-Looking Statements
Investor, Contact and Feedback
Information
As of December 31, 2024, 2023 and 2022, Cemex’s pre-tax discount rates and long-term growth rates used to determine the discounted cash flows in the
group of CGUs with the main goodwill balances were as follows:
Discount rates
Long-term growth rates 1
Groups of CGUs
2024
2023
2022
2024
2023
2022
United States
9.4%
10.1%
9.1%
2.1%
2.0%
2.0%
United Kingdom
9.7%
10.4%
9.1%
1.3%
1.5%
1.5%
France
9.8%
10.4%
9.2%
1.3%
1.5%
1.4%
Spain
9.8%
10.7%
9.4%
1.6%
1.6%
1.7%
Mexico
10.9%
11.6%
10.3%
0.5%
1.0%
1.1%
Colombia
12.1%
12.7%
10.9%
3.0%
3.3%
3.3%
Range of rates in other countries
9.6% – 12.8%
10.3% – 14.7%
9.3% – 13.9%
0.7% – 4.0%
1.1% – 4.0%
1.5% – 4.5%
1
Cemex’s long-term growth rates are generally based on projections issued by the International Monetary Fund (“IMF”) as maximum benchmarks but may be adjusted downwards based on industry specific
expectations.
As of December 31, 2024, the discount rates used by Cemex in its cash flows projections to determine the value in use of its operating segments (group of
CGUs) to which goodwill was allocated, decreased by a weighted average of 0.7% as compared to 2023, mainly considering the decrease in the risk-free
rate which changed from 4.79% in 2023 to 4.25% in 2024 and the reduction in the funding cost that changed from 6.7% in 2023 to 5.3% in 2024, net of the
decrease in the weight of debt which changed from 22.5% in 2023 to 21.1% in 2024 and the slight reduction in the public comparable companies’ stock
volatility (“Beta”) which changed from 1.07 in 2023 to 1.05 in 2024. These reductions were partially offset by the increase in the market premium which
changed from 5.9% in 2023 to 6.0% in 2024. These financial assumptions will be revised upwards or downwards again in the future.
As of December 31, 2023, the discount rates used by Cemex in its cash flows projections to determine the value in use of its operating segments to which
goodwill was allocated, increased by a weighted average of 1.2% as compared to 2022, mainly considering the increase in the risk-free rate which changed
from 3.58% in 2022 to 4.79% in 2023 and the reduction in the weight of debt which changed from 27% in 2022 to 22.5% in 2023. This was partially offset by
the reduction in the Beta which changed from 1.08 in 2022 to 1.07 in 2023. In 2023, the funding cost remained unchanged at 6.7% as compared to 2022,
as well as other assumptions that remained relatively flat in 2023 as compared to 2022.
As of December 31, 2022, the discount rates used by Cemex in its cash flows projections to determine the value in use of its operating segments to which
goodwill was allocated, increased by a weighted average of 2.0% as compared to 2021, mainly considering the increase in the risk-free rate which changed
from 1.82% in 2021 to 3.58% in 2022, the increase in the funding cost which changed from 4.1% in 2021 to 6.7% in 2022 and the average increase of 1.7%
in the cost of equity in 2022. The other variables remained relatively flat.
In connection with the aforementioned discount rates and long-term growth, Cemex verified the reasonableness of its conclusions using sensitivity analyses
to changes in assumptions, affecting the value in use of all groups of CGUs with an independent reasonably possible increase of 1% in the pre-tax discount
rate, an independent possible decrease of 1% in the long-term growth rate, as well as using multiples of Operating EBITDA, by means of which, Cemex
determined a weighted-average multiple of Operating EBITDA to enterprise value observed in recent mergers and acquisitions in the industry. The average
multiple was then applied to a stabilized amount of Operating EBITDA and the result was compared to the corresponding carrying amount for each group
of CGUs to which goodwill had been allocated. Cemex considered an average Operating EBITDA multiple of 9.7 times in 2024 obtained from its recent
divestment transactions.
164
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Contents
Our Company
Our Strategy
Financial Performance
Environmental Excellence
Stakeholder Engagement
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Appendix
Selected Consolidated Financial
Information
• Financial Information
Non-Financial Information
Scope and Boundaries of
This Report
Cemex’s Materiality Assessment
Stakeholder Engagement
Governance
EU Taxonomy
GRI Content Index
International Sustainability
Standards Board (ISSB)
Sustainability Accounting
Standards Board Response (SASB)
Task Force on Climate-related
Financial Disclosure Response
(TCFD)
Terms We Use
Cautionary Statement Regarding
Forward-Looking Statements
Investor, Contact and Feedback
Information
In relation to the economic assumptions used by the Company described above, the additional impairment losses that would have resulted from the sensitivity
analyses derived from independent changes in each of the relevant assumptions, as well as the average multiple of Operating EBITDA, in those operating
segments that presented relative impairment risk as of December 31, 2024, are as follows:
Impairment effects from the sensitivity analyses to changes
in assumptions as of December 31, 2024
Operating segment
Impairment losses
recognized
Discount rate
+1%
Long-term growth rate
–1%
Multiples Operating EBITDA
9.7x
United States
$
—
509
213
—
Colombia
$
—
49
23
—
As of December 31, 2024, the factors considered by the Company’s management that could cause the hypothetical scenario of the previous sensitivity analyses
of discount rates in the United States and Colombia, an independent increase of 450 bps (4.5%) in the Company’s funding cost observed as of December
31, 2024 of 5.3% or, an independent increase in the risk-free rate of 125 bps to reach 5.5%. Nonetheless, such assumptions did not seem reasonable as of
December 31, 2024 in an environment with inflation receding and consequently with interest rates decreasing. Cemex continually monitors the evolution of the
groups of CGUs to which goodwill has been allocated that have presented relative goodwill impairment risk in any of the reported periods and if the relevant
economic variables and the related value in use would be negatively affected, it may result in goodwill impairment losses in the future.
Impairment tests are significantly sensitive to the estimation of future prices of Cemex’s products, the development of operating expenses, local and
international economic trends in the construction industry, the long-term growth expectations in the different markets, as well as the discount rates and
the growth rates in perpetuity applied. For purposes of estimating future prices, Cemex uses, to the extent available, historical data; plus the expected
increase or decrease according to information issued by trusted external sources, such as national construction or cement producer chambers and/or in
governmental economic expectations. Operating expenses are normally measured as a constant proportion of revenues, following experience. However,
such operating expenses are also reviewed considering external information sources in respect of inputs that behave according to international prices, such
as oil and gas. Cemex uses specific pre-tax discount rates for each group of CGUs to which goodwill is allocated, which are applied to discount pre-tax cash
flows. The amounts of estimated undiscounted cash flows are significantly sensitive to the growth rate in perpetuity applied. The higher the growth rate in
perpetuity applied, the higher the amount of undiscounted future cash flows by group of CGUs obtained. Moreover, the amounts of discounted estimated
future cash flows are significantly sensitive to the weighted average cost of capital (discount rate) applied. The higher the discount rate applied, the lower
the amount of discounted estimated future cash flows by group of CGUs obtained.
165
Cemex 2024 Integrated Report
Notes to the Consolidated
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Contents
Our Company
Our Strategy
Financial Performance
Environmental Excellence
Stakeholder Engagement
Governance
Appendix
Selected Consolidated Financial
Information
• Financial Information
Non-Financial Information
Scope and Boundaries of
This Report
Cemex’s Materiality Assessment
Stakeholder Engagement
Governance
EU Taxonomy
GRI Content Index
International Sustainability
Standards Board (ISSB)
Sustainability Accounting
Standards Board Response (SASB)
Task Force on Climate-related
Financial Disclosure Response
(TCFD)
Terms We Use
Cautionary Statement Regarding
Forward-Looking Statements
Investor, Contact and Feedback
Information
17)
Financial Instruments
17.1)
Current and Non-Current Debt
As of December 31, 2024 and 2023, Cemex’s consolidated debt summarized by interest rates and currencies, was as follows:
2024
2023
Current
Non-current
Total 1, 2
Current
Non-current
Total 1, 2
Floating rate debt
$
23
1,305
1,328
$
13
1,968
1,981
Fixed rate debt
166
4,035
4,201
12
4,235
4,247
$
189
5,340
5,529
$
25
6,203
6,228
Effective rate 3
Floating rate
5.1%
6.0%
6.4%
7.1%
Fixed rate
7.3%
4.6%
4.4%
5.0%
2024
2023
Currency
Current
Non-current
Total
Effective rate 3
Current
Non-current
Total
Effective rate 3
Dollars
$
161
3,595
3,756
5.1%
$
1
4,348
4,349
5.5%
Euros
2
876
878
3.9%
9
990
999
4.2%
Pesos
—
842
842
11.2%
—
704
704
12.0%
Philippine Pesos
—
—
—
—
11
112
123
7.1%
Other currencies
26
27
53
5.4%
4
49
53
4.5%
$
189
5,340
5,529
$
25
6,203
6,228
1
As of December 31, 2024 and 2023, from the total debt of $5,529 and $6,228, respectively, 95% and 94% was held in the Parent Company and 5% and 6% in subsidiaries of the Parent Company, respectively.
2
As of December 31, 2024 and 2023, cumulative discounts, fees and other direct costs incurred in Cemex’s outstanding debt borrowings and the issuance of notes payable (jointly “Issuance Costs”) for $29 and
$47, respectively, are presented reducing debt balances and are amortized to financial expense over the maturity of the related debt instruments under the effective interest rate method.
3
In 2024 and 2023, represents the weighted-average effective interest rate of the related debt agreements determined at the end of each period.
As of December 31, 2024 and 2023, Cemex’s consolidated debt summarized by type of instrument, was as follows:
2024
Current
Non-current
2023
Current
Non-current
Bank loans
Bank loans
Lines of credit, 2025 to 2026
$
11
81
Lines of credit, 2024 to 2025
$
10
202
Syndicated loans, 2026 to 2029
—
1,731
Syndicated loans, 2025 to 2028
—
2,476
11
1,812
10
2,678
Notes payable
Notes payable
Medium-term notes, 2025 to 2031
150
3,538
Medium-term notes, 2026 to 2031
—
3,508
Other notes payable, 2025 to 2027
6
12
Other notes payable, 2024 to 2027
5
27
156
3,550
5
3,535
Total bank loans and notes payable
167
5,362
Total bank loans and notes payable
15
6,213
Current maturities
22
(22)
Current maturities
10
(10)
$
189
5,340
$
25
6,203
166
Cemex 2024 Integrated Report
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Contents
Our Company
Our Strategy
Financial Performance
Environmental Excellence
Stakeholder Engagement
Governance
Appendix
Selected Consolidated Financial
Information
• Financial Information
Non-Financial Information
Scope and Boundaries of
This Report
Cemex’s Materiality Assessment
Stakeholder Engagement
Governance
EU Taxonomy
GRI Content Index
International Sustainability
Standards Board (ISSB)
Sustainability Accounting
Standards Board Response (SASB)
Task Force on Climate-related
Financial Disclosure Response
(TCFD)
Terms We Use
Cautionary Statement Regarding
Forward-Looking Statements
Investor, Contact and Feedback
Information
Changes in consolidated debt for the years ended December 31, 2024, 2023 and 2022 were as follows:
2024
2023
2022
Debt at beginning of year
$
6,228
6,971
7,379
Proceeds from new debt instruments
5,048
2,938
2,006
Debt repayments
(5,497)
(3,840)
(2,420)
Foreign currency translation and accretion effects
(250)
159
6
Debt at end of year
$
5,529
6,228
6,971
As a result of transactions incurred during the reported periods to issue, refinance, replace and/or repurchase existing debt instruments, as applicable,
Cemex paid transactional costs, including premiums and/or redemption costs (jointly the “Transactional Costs”) for aggregate amounts of $22 in 2024, $72
in 2023 and $51 in 2022. Of these Transactional Costs, $9 in 2024, $16 in 2023 and $4 in 2022, corresponding to new debt instruments or the refinancing
of existing debt, adjusted the carrying amount of the related debt instruments and are amortized over the remaining term of each instrument, while $56 in
2023 and $47 in 2022 of such Transactional Costs, associated with the extinguished portion of the related debt, were recognized each period in the caption
“Financial income and other items, net.” In addition, Transactional Costs pending for amortization related to extinguished debt instruments of $2 in 2024,
$12 in 2023 and $6 in 2022 were also recognized within “Financial income and other items, net.”
As of December 31, 2024 and 2023, non-current notes payable for $3,550 and $3,535, respectively, were detailed as follows:
Description
Date of
issuance
Issuer 1
Currency
Principal
amount
Rate
Maturity
Redeemed
amount 2
$
Outstanding
amount 2
$
2024
2023
2023 CEBURES variable rate 3
05/Oct/23
Cemex, S.A.B. de C.V.
Peso
3,000
TIIE+.45%
01/Oct/26
—
144
$
144
59
2023 CEBURES fixed rate 3
05/Oct/23
Cemex, S.A.B. de C.V.
Peso
8,500
11.480%
26/Sep/30
—
408
411
292
July 2031 Notes 4
12/Jan/21
Cemex, S.A.B. de C.V.
Dollar
1,750
3.875%
11/Jul/31
(642)
1,108
1,104
1,102
September 2030 Notes 4
17/Sep/20
Cemex, S.A.B. de C.V.
Dollar
1,000
5.2%
17/Sep/30
(283)
717
715
714
November 2029 Notes 4
19/Nov/19
Cemex, S.A.B. de C.V.
Dollar
1,000
5.45%
19/Nov/29
(247)
753
750
749
March 2026 Notes 4
19/Mar/19
Cemex, S.A.B. de C.V.
Euro
400
3.125%
19/Mar/26
—
414
414
441
July 2025 Notes
01/Apr/03
Cemex Materials LLC
Dollar
150
7.70%
21/Jul/25
—
150
—
151
Other notes payable
12
27
$
3,550
3,535
1
As of December 31, 2024, except for the July 2025 Notes and other notes payable, these issuances are fully and unconditionally guaranteed by Cemex Concretos, S.A. de C.V., Cemex Operaciones México, S.A.
de C.V., Cemex Innovation Holding Ltd. and Cemex Corp. The July 2025 Notes are fully and unconditionally guaranteed by Cemex Corp.
2
Presented net of all notes repurchased by Cemex. As of December 31, 2024, all repurchased notes have been canceled.
3
On February 16, 2024, Cemex reopened and placed an additional principal amount of Ps5,500 of its sustainability-linked long-term notes (Certificados Bursátiles de Largo Plazo or the “2023 CEBURES”) issued
in 2023. The reopening closed on February 20, 2024 and consisted of two tranches: the first of Ps2,000 at a floating annual interest rate of TIIE 28 plus 0.45%, and the second of Ps3,500 at a fixed annual interest
rate of 11.48%. In connection with these issuances in 2024 and 2023, Cemex negotiated interest rate and currency derivative instruments to synthetically change the financial risks profile of these issuances from
the Peso to the Dollar (note 17.4).
4
During 2022, pursuant to tender offers and other market transactions, Cemex partially repurchased several series of its notes for an aggregate notional amount of $1,172. The difference between the amount
paid for such notes and the notional amount redeemed, net of transactional costs, generated a repurchase gain of $104, recognized in the line item “Financial income and other items, net.”
167
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Our Strategy
Financial Performance
Environmental Excellence
Stakeholder Engagement
Governance
Appendix
Selected Consolidated Financial
Information
• Financial Information
Non-Financial Information
Scope and Boundaries of
This Report
Cemex’s Materiality Assessment
Stakeholder Engagement
Governance
EU Taxonomy
GRI Content Index
International Sustainability
Standards Board (ISSB)
Sustainability Accounting
Standards Board Response (SASB)
Task Force on Climate-related
Financial Disclosure Response
(TCFD)
Terms We Use
Cautionary Statement Regarding
Forward-Looking Statements
Investor, Contact and Feedback
Information
The maturities of consolidated long-term debt as of December 31, 2024, were as follows:
Bank loans
Notes payable
Total
2026
$
275
565
840
2027
694
4
698
2028
694
2
696
2029
93
750
843
2030 and thereafter
34
2,229
2,263
$
1,790
3,550
5,340
As of December 31, 2024, Cemex had the following lines of credit, of which, the committed portion refers to the revolving credit facility under the 2023
Credit Agreement, at annual interest rates ranging between 5.25% and 6.35%, depending on the negotiated currency:
Lines of credit
Available
Other lines of credit in foreign subsidiaries 1
$
392
250
Other lines of credit from banks 1
1,009
1,009
Revolving credit facility 2023 Credit Agreement
2,311
2,311
$
3,712
3,570
1
Uncommitted amounts subject to the banks’ availability.
Sustainability-linked and green financing
As of December 31, 2024 and 2023, Cemex’s consolidated debt of $5,529 and $6,228, respectively, included balances outstanding denominated in Dollars,
Euros and Pesos under either its 2021 Sustainability-linked Financing Framework (the “2021 SLFF”) or its 2023 Sustainability-linked Financing Framework
(the “2023 SLFF”, and together with the 2021 SLFF, the “SLFFs”) of $4,597 in 2024 and $4,227 in 2023, representing the Company’s debt that is linked and
aligned to Cemex’s strategy of CO2 emissions reduction and its ultimate vision of a carbon-neutral economy (note 24.3).
As of December 31, 2024, the balance of debt under the SLFFs includes $4,042 of debt arising from bank loans, including the 2023 Credit Agreement
described below. Under the 2023 Credit Agreement, the annual performance in respect to the metrics referenced in the 2023 SLFF may result in a total
adjustment of the interest rate margin of plus or minus 5 bps1, in line with other sustainability-linked facilities from investment-grade rated borrowers.
The remainder of the debt balance under the SLFFs relates to the 2023 CEBURES. Of these, $144 or the variable rate leg is linked exclusively to one metric of
the 2023 SLFF and may result in an increase of 20 bps in the nominal value at redemption. The remaining $411, or the fixed rate leg is also linked to only one
metric of the 2023 SLFF and may result in a per annum increase of 25 bps to the interest rate applicable to the last four semi-annual coupon payments.
On November 8, 2021, Cemex, S.A.B. de C.V. closed a Dollar-denominated $3,250 syndicated sustainability-linked credit agreement (the “2021 Credit
Agreement”), which proceeds were mainly used to fully repay its previous syndicated facilities agreement entered in 2017. The 2021 Credit Agreement was
the first debt instrument issued by Cemex under the 2021 SLFF. Additionally, Cemex’s securitization programs (notes 10 and 17.2) are linked to the SLFFs,
utilizing one or more metrics and may result in an annual fee payment equivalent to up to 5 bps of the total facilities amount.
2023 Credit Agreement and 2021 Credit Agreement
On October 30, 2023, Cemex refinanced its 2021 Credit Agreement (as described below), extending the maturity to 2028. The refinanced 2021 Credit
Agreement (the “2023 Credit Agreement”) comprises a $1,000, 5-year amortizing term loan and a $2,000, 5-year committed revolving credit facility
(“RCF”). The 2023 Credit Agreement represented a reduction of $500 in the term loan and an increase of $250 in the revolver of the 2021 Credit Agreement.
The 2023 Credit Agreement, denominated exclusively in Dollars, maintained its previous interest rate margin and financial covenants, consistent with an
investment-grade capital structure, which provide for a maximum ratio of Consolidated Net Debt (as defined below) to Consolidated EBITDA (as defined
below) (“Consolidated Leverage Ratio”) of 3.75 times throughout the life of the loan and a minimum ratio of Consolidated EBITDA to interest expense
(“Consolidated Coverage Ratio”) of 2.75 times. As of December 31, 2024 and 2023, the debt outstanding under the 2023 Credit Agreement amounted to
$1,000 and $1,600, which included amounts owed under the RCF of $600 in 2023.
1
The Secured Overnight Financing Rate (“SOFR”) is a measure of the cost of borrowing cash overnight collateralized by Treasury securities. As of December 31, 2024 and 2023, SOFR rate was 4.49% and 5.38%,
respectively. The contraction “bps” means basis points. One hundred basis points equal 1%.
168
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Our Strategy
Financial Performance
Environmental Excellence
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Appendix
Selected Consolidated Financial
Information
• Financial Information
Non-Financial Information
Scope and Boundaries of
This Report
Cemex’s Materiality Assessment
Stakeholder Engagement
Governance
EU Taxonomy
GRI Content Index
International Sustainability
Standards Board (ISSB)
Sustainability Accounting
Standards Board Response (SASB)
Task Force on Climate-related
Financial Disclosure Response
(TCFD)
Terms We Use
Cautionary Statement Regarding
Forward-Looking Statements
Investor, Contact and Feedback
Information
All tranches under the 2023 Credit Agreement include a margin over SOFR1 from 100 bps1 to 175 bps, depending on the Consolidated Leverage Ratio
ranging from less than or equal to 2.25 times in the lower end to greater than 3.25 times in the higher end.
The balance of debt under the 2023 Credit Agreement, in which Cemex, S.A.B. de C.V. is the borrower, is guaranteed by Cemex Concretos, S.A. de C.V.,
Cemex Operaciones México, S.A. de C.V., Cemex Innovation Holding Ltd. and Cemex Corp. This guarantor structure is applicable in all senior notes of the
Parent Company and the previous 2021 Credit Agreement.
The 2023 Credit Agreement contains ongoing representations, warranties, affirmative and negative covenants, including financial covenants. As of
December 31, 2024 and 2023, Cemex was in compliance with all covenants contained in the 2023 Credit Agreement. Cemex cannot assure that in the
future it will be able to comply with all such covenants, including any financial covenants, which non-compliance, if not remedied, could result in an event of
default, which could materially and adversely affect Cemex’s business and financial condition.
Financial Covenants
Under the 2023 Credit Agreement and the 2021 Credit Agreement, as applicable depending on the reported period, at the end of each quarter for each
period of four consecutive quarters, Cemex must comply with a maximum Consolidated Leverage Ratio of 3.75 times and a minimum Consolidated Coverage
Ratio of 2.75 times throughout the life of the corresponding credit agreement. These financial ratios are calculated using the consolidated amounts under
the terms of the agreement.
Consolidated Leverage Ratio
• Under the 2023 Credit Agreement and the 2021 Credit Agreement, the ratio is calculated by dividing “Consolidated Net Debt” by “Consolidated EBITDA”
for the last twelve months as of the calculation date. Consolidated Net Debt equals debt, as reported in the statement of financial position, net of cash and
cash equivalents, excluding any existing or future obligations under any securitization program, and any subordinated debt of Cemex, adjusted for net mark-
to-market of all derivative instruments, as applicable, among other adjustments including in relation for business acquisitions or disposals.
Consolidated EBITDA: Under the 2023 Credit Agreement and the 2021 Credit Agreement, represents Operating EBITDA for the last twelve months as of
the calculation date, as adjusted for any discontinued EBITDA, and solely for the purpose of calculating the Consolidated Leverage Ratio on a pro forma
basis for any material disposition and/or material acquisition.
Consolidated Coverage Ratio
• Under the 2023 Credit Agreement and the 2021 Credit Agreement, the ratio is calculated by dividing Consolidated EBITDA by the financial expense for
the last twelve months as of the calculation date.
As of December 31, 2024, 2023 and 2022, under the 2023 Credit Agreement and the 2021 Credit Agreement, as applicable, the main consolidated
financial ratios were as follows:
Consolidated financial ratios
Refers to the compliance limits and calculations
that were effective on each date
2024
2023
2022
Leverage ratio
Limit
<=3.75
<=3.75
<=3.75
Calculation
1.81
2.06
2.84
Coverage ratio
Limit
>=2.75
>=2.75
>=2.75
Calculation
7.26
7.91
6.27
As a result of noncompliance with the agreed upon financial ratios or, in such event, the absence of a waiver of compliance or a negotiation thereof, after
certain procedures followed upon Cemex’s lenders’ request, they may call for the acceleration of payments due under the 2023 Credit Agreement. That
scenario would have a material adverse effect on Cemex’s operating results, liquidity or financial position. Cemex’s ability to comply with these ratios may be
affected by economic conditions, volatility in foreign exchange rates, as well as by overall conditions in the financial and capital markets or other factors.
169
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Our Strategy
Financial Performance
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Appendix
Selected Consolidated Financial
Information
• Financial Information
Non-Financial Information
Scope and Boundaries of
This Report
Cemex’s Materiality Assessment
Stakeholder Engagement
Governance
EU Taxonomy
GRI Content Index
International Sustainability
Standards Board (ISSB)
Sustainability Accounting
Standards Board Response (SASB)
Task Force on Climate-related
Financial Disclosure Response
(TCFD)
Terms We Use
Cautionary Statement Regarding
Forward-Looking Statements
Investor, Contact and Feedback
Information
Cemex will classify all of its non-current debt as current debt if: 1) as of any measurement date Cemex fails to comply with any covenants that would cause a
default, including the aforementioned financial ratios; and/or 2) the cross default-clause that is part of the 2023 Credit Agreement is triggered by the provisions
contained therein. Moreover, although Cemex will not classify its non-current debt as current debt in the following events, Cemex will disclose the fact if: (i) as of
any date prior to a subsequent measurement date Cemex expects not to be in compliance with such financial ratios in the absence of: a) amendments and/or
waivers covering the next succeeding 12 months; b) high probability that the violation will be cured during any agreed upon remediation period and be sustained
for the next succeeding 12 months; and/or c) an agreement to refinance the relevant debt on a long-term basis.
17.2)
Other Financial Obligations
As of December 31, 2024 and 2023, other financial obligations in the consolidated statement of financial position were detailed as follows:
2024
2023
Current
Non-current
Total
Current
Non-current
Total
I. Leases
$
269
902
1,171
$
272
986
1,258
II. Liabilities secured with accounts receivable
658
—
658
678
—
678
$
927
902
1,829
$
950
986
1,936
I. Leases (notes 8.1, 15.2, 24.1 and 29.4)
Cemex has several operating and administrative assets under lease contracts (note 15.2). As mentioned in note 29.4, Cemex applies the recognition exemption
for short-term leases and leases of low-value assets. Changes in the balance of lease financial liabilities during 2024, 2023 and 2022 were as follows:
2024
2023
2022
Lease financial liability at beginning of year
$
1,258
1,176
1,176
Additions from new leases
290
341
296
Reductions from payments
(296)
(256)
(276)
Cancellations and liability remeasurements
(47)
(24)
7
Foreign currency translation and accretion effects
(34)
21
(27)
Lease financial liability at end of year
$
1,171
1,258
1,176
As of December 31, 2024, the maturities of non-current lease financial liabilities are as follows:
Total
2026
$
203
2027
149
2028
124
2029
85
2030 and thereafter
341
$
902
Total cash outflows for leases in 2024, 2023 and 2022, including the interest expense portion as disclosed in note 8.1, were $371, $331 and $342,
respectively. Future payments associated with these contracts are presented in note 24.1.
II. Liabilities secured with accounts receivable
As mentioned in note 10, as of December 31, 2024 and 2023, the funded amounts of trade accounts receivable sold under securitization programs and/
or factoring programs with recourse of $658 and $678, respectively, were recognized within the line item “Other financial obligations” in the statement of
financial position. For the years ended December 31, 2024, 2023 and 2022, the net cash flows generated by (used in) these securitization programs were
$3, $(18) and $79, respectively.
The balances of the Company’s other financial obligations associated with the programs for the sale of accounts receivable mentioned above are part of
Cemex’s total obligations under the SLFFs framework mentioned before, which are linked and aligned to Cemex’s strategy of CO2 emissions reduction and
its ultimate vision of a carbon-neutral economy (note 24.3).
170
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Contents
Our Company
Our Strategy
Financial Performance
Environmental Excellence
Stakeholder Engagement
Governance
Appendix
Selected Consolidated Financial
Information
• Financial Information
Non-Financial Information
Scope and Boundaries of
This Report
Cemex’s Materiality Assessment
Stakeholder Engagement
Governance
EU Taxonomy
GRI Content Index
International Sustainability
Standards Board (ISSB)
Sustainability Accounting
Standards Board Response (SASB)
Task Force on Climate-related
Financial Disclosure Response
(TCFD)
Terms We Use
Cautionary Statement Regarding
Forward-Looking Statements
Investor, Contact and Feedback
Information
17.3)
Fair Value of Financial Instruments
Under IFRS, fair value represents an “Exit Value” which is the price that would be received to sell an asset or paid to transfer a liability in an orderly
transaction between market participants at the measurement date, considering the counterparty’s credit risk in the valuation. Exit Value is premised on the
existence of a market and market participants for the specific asset or liability. When there are no market and/or market participants, IFRS establishes a
fair value hierarchy that gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements),
inputs other than quoted prices in active markets that are observable for the asset or liability, either directly or indirectly, used mainly to determine the fair
value of securities, investments or loans that are not actively traded (Level 2 measurements) and the lowest priority to measurements involving significant
unobservable inputs (Level 3 measurements).
Financial assets and liabilities
The book values of cash, trade accounts receivable, other accounts receivable, trade payables, other accounts payable and accrued expenses, as well as short-
term debt, approximate their corresponding estimated fair values due to the revolving nature of these financial assets and liabilities in the short-term.
The estimated fair value of Cemex’s non-current debt is level 1 and level 2 and is either based on estimated market prices for such or similar instruments,
considering interest rates currently available for Cemex to negotiate debt with the same maturities, or determined by discounting future cash flows using
market-based interest rates currently available to Cemex.
The fair values determined by Cemex for its derivative financial instruments are level 2. There is no direct measure for the risk of Cemex or its counterparties
in connection with such instruments. Therefore, the risk factors applied for Cemex’s assets and liabilities originated by the valuation of such derivatives were
extrapolated from publicly available risk discounts for other public debt instruments of Cemex or its counterparties.
The estimated fair value of derivative instruments fluctuates over time and is determined by measuring the effect of future relevant economic variables
according to the yield curves shown in the market as of the reporting date. These values should be analyzed in relation to the fair values of the underlying
transactions and as part of Cemex’s overall exposure to fluctuations in interest rates and foreign exchange rates. The notional amounts of derivative
instruments do not represent amounts of cash exchanged by the parties, and consequently, there is no direct measure of Cemex’s exposure to the use of
these derivatives. The amounts exchanged are determined based on the notional amounts and other terms included in the derivative instruments.
As of December 31, 2024 and 2023, the carrying amounts of financial assets and liabilities and their respective fair values were as follows:
2024
2023
Carrying amount
Fair value
Carrying amount
Fair value
Financial assets
Derivative financial instruments (notes 14.2 and 17.4)
$
60
60
$
64
64
Other investments and non-current accounts receivable (note 14.2)
196
179
276
266
$
256
239
$
340
330
Financial liabilities
Long-term debt (note 17.1)
$
5,340
5,145
$
6,203
6,030
Other financial obligations (note 17.2)
902
898
986
919
Derivative financial instruments (notes 17.4 and 18.3)
100
100
15
15
$
6,342
6,143
$
7,204
6,964
171
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Notes to the Consolidated
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Contents
Our Company
Our Strategy
Financial Performance
Environmental Excellence
Stakeholder Engagement
Governance
Appendix
Selected Consolidated Financial
Information
• Financial Information
Non-Financial Information
Scope and Boundaries of
This Report
Cemex’s Materiality Assessment
Stakeholder Engagement
Governance
EU Taxonomy
GRI Content Index
International Sustainability
Standards Board (ISSB)
Sustainability Accounting
Standards Board Response (SASB)
Task Force on Climate-related
Financial Disclosure Response
(TCFD)
Terms We Use
Cautionary Statement Regarding
Forward-Looking Statements
Investor, Contact and Feedback
Information
As of December 31, 2024 and 2023, assets and liabilities carried at fair value in the consolidated statements of financial position are included in the
following fair value hierarchy categories (note 29.4):
2024
Level 1
Level 2
Level 3
Total
Assets measured at fair value
Derivative financial instruments (notes 14.2 and 17.4)
$
—
60
—
60
Investments in strategic equity securities (note 14.2)
4
—
—
4
Other investments at fair value through earnings (note 14.2)
—
1
—
1
$
4
61
—
65
Liabilities measured at fair value
Derivative financial instruments (notes 17.4 and 18.3)
$
—
100
—
100
2023
Level 1
Level 2
Level 3
Total
Assets measured at fair value
Derivative financial instruments (notes 14.2 and 17.4)
$
—
64
—
64
Investments in strategic equity securities (note 14.2)
3
—
—
3
Other investments at fair value through earnings (note 14.2)
—
1
—
1
$
3
65
—
68
Liabilities measured at fair value
Derivative financial instruments (notes 17.4 and 18.3)
$
—
15
—
15
17.4)
Derivative Financial Instruments
During the reported periods, in compliance with the guidelines established by its Risk Management Committee, the restrictions set forth by its debt agreements
and its hedging strategy (note 17.5), Cemex held derivative instruments with the objectives explained in the following paragraphs.
As of December 31, 2024 and 2023, the notional amounts and fair values of Cemex’s derivative instruments were as follows:
2024
2023
Notional
amount
Fair value
Notional
amount
Fair value
I. Foreign exchange forwards hedging the net investment
$
713
63
976
(94)
II. Cross currency swaps
658
(100)
335
23
III. Interest rate swaps
600
14
750
30
IV. Fuel price hedging
356
6
232
5
V. Foreign exchange options
650
41
300
10
$
2,977
24
2,593
(26)
The caption “Financial income and other items, net” in the statements of income includes certain gains and losses related to the recognition of changes in
fair values of the derivative financial instruments during the applicable period, which represented net losses of $2 in 2024, $19 in 2023 and $5 in 2022.
During the reported periods, Cemex did not have derivatives designated as fair value hedges.
172
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Contents
Our Company
Our Strategy
Financial Performance
Environmental Excellence
Stakeholder Engagement
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Appendix
Selected Consolidated Financial
Information
• Financial Information
Non-Financial Information
Scope and Boundaries of
This Report
Cemex’s Materiality Assessment
Stakeholder Engagement
Governance
EU Taxonomy
GRI Content Index
International Sustainability
Standards Board (ISSB)
Sustainability Accounting
Standards Board Response (SASB)
Task Force on Climate-related
Financial Disclosure Response
(TCFD)
Terms We Use
Cautionary Statement Regarding
Forward-Looking Statements
Investor, Contact and Feedback
Information
I. Net investment hedges
As of December 31, 2024 and 2023, there are Dollar/Peso foreign exchange forward contracts with target tenor ranging from 1 to 15 months for notional
amounts of $492 and $518, respectively. Cemex has designated this program as a hedge of Cemex’s net investment in Pesos, pursuant to which changes in
the fair market value of these instruments are recognized as part of other equity reserves. For the years 2024, 2023 and 2022, these contracts generated
gains of $86 and losses of $172 and $96, respectively, which partially offset currency translation effects in each year recognized in equity generated from
Cemex’s net assets denominated in Pesos. The gains generated in 2024 from these derivatives are related to the depreciation of the Peso during the year,
while the losses during 2023 and 2022 were related to the appreciation of the Peso in both years.
In addition, as of December 31, 2024 and 2023, as part of Cemex’s Peso net investment hedge strategy, there are additional Dollar/Peso capped forwards,
structured with option contracts, for a notional amount of $221 and $458, respectively. These capped forwards contain limits on the upside that the
instrument may generate. Changes in the fair market value of such capped forward contracts are also recognized as part of other equity reserves. For the
years 2024, 2023 and 2022, these contracts generated gains of $43, and losses of $54 and $2, respectively, which partially offset currency translation
effects recognized in equity generated from Cemex’s net assets denominated in Pesos due to the depreciation of the Peso in 2024 and the appreciation
of the Peso in 2023 and 2022.
Moreover, during the year 2022, Cemex unwound Dollar/Euro cross-currency swap contracts for a notional amount of $750, which resulted in a settlement
gain of $80 in equity. Cemex designated the foreign exchange forward component of these instruments as a hedge of Cemex’s net investment in Euros and
changes in fair market were recognized as part of other equity reserves, while changes in fair value of the interest rate swap component until settlement
were recognized within the line item of “Financial income and other items, net,” representing gains of $8 in 2022. For the year 2022, the foreign exchange
forward component generated gains of $70 recognized in equity, which partially offset currency translation losses recognized in equity generated from
Cemex’s net assets denominated in Euros due to the depreciation of the Euro against the Dollar in 2022, related to the exchange of interest rates in the
statement of income.
II. Cross currency swaps
As of December 31, 2024 and 2023, Cemex held cross-currency swap contracts for a notional amount of $658 and $335, respectively, in connection with
the 2023 CEBURES as described in note 17.1, aiming to change the rate and currency risk profile of such 2023 CEBURES from the Peso to the Dollar. Cemex
designated these contracts as cash flow hedges of interest rate payments in relation to an equivalent amount of variable and fixed interest rate debt.
Changes in fair value of these contracts for the interest rate swap leg are initially recognized as part of other equity reserves and are subsequently allocated
through financial expense as interest expense on the related loans is accrued in the statement of income, while changes in fair value of the currency forward
leg are recognized directly in the statement of income partially offsetting the related Peso denominated debt’s foreign exchange fluctuation. For the years
2024 and 2023, changes in the fair value of these contracts generated losses of $123 and gains of $23, respectively, recognized in other comprehensive
income. Moreover, during the same periods, Cemex reclassified results from equity to the line item “Financial expenses” representing income of $28 in 2024
and $5 in 2023.
III. Interest rate swaps
For accounting purposes under IFRS, Cemex designates interest rate swaps as cash flow hedges, to fix interest rate payments in relation to an equivalent
amount of floating interest rate debt. As a result, changes in the fair value of these contracts are initially recognized as part of other equity reserves and
are subsequently reclassified to financial expense as the interest expense of the related floating interest rate debt is accrued in the statement of income.
As of December 31, 2024 and 2023, Cemex held interest rate swaps for a notional amount of $600 and $750, respectively, with a fair market value
representing assets of $14 in 2024 and $30 in 2023, negotiated in June 2018 to fix interest payments of existing bank loans bearing Dollar floating rates.
For the years 2024 and 2023, changes in the fair value of these contracts generated losses of $16 and $9, respectively and for the year 2022, gains of $69,
recognized in other comprehensive income. Moreover, during the same periods, Cemex reclassified results from equity to the line item “Financial expenses”
representing income of $23 in 2024, $22 in 2023 and expenses of $2 in 2022.
In addition, as of December 31, 2022, Cemex held interest rate swaps for a notional of $268 negotiated to fix interest payments of existing bank loans
referenced to Peso floating rates that matured in November 2023, which fair value represented an asset of $15 in 2022. For the years 2023 and 2022
until their settlement, changes in the fair value of these contracts generated losses of $15 and gains of $3, respectively, recognized in other comprehensive
income. Moreover, during the same periods, Cemex recycled results from equity to the “Financial expenses” line item representing gains of $18 in 2023, and
$7 in 2022.
173
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Contents
Our Company
Our Strategy
Financial Performance
Environmental Excellence
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Appendix
Selected Consolidated Financial
Information
• Financial Information
Non-Financial Information
Scope and Boundaries of
This Report
Cemex’s Materiality Assessment
Stakeholder Engagement
Governance
EU Taxonomy
GRI Content Index
International Sustainability
Standards Board (ISSB)
Sustainability Accounting
Standards Board Response (SASB)
Task Force on Climate-related
Financial Disclosure Response
(TCFD)
Terms We Use
Cautionary Statement Regarding
Forward-Looking Statements
Investor, Contact and Feedback
Information
Contents
Our Company
Our Strategy
Financial Performance
Environmental Excellence
Stakeholder Engagement
Governance
Appendix
Selected Consolidated Financial
Information
• Financial Information
Non-Financial Information
Scope and Boundaries of
This Report
Cemex’s Materiality Assessment
Stakeholder Engagement
Governance
EU Taxonomy
GRI Content Index
International Sustainability
Standards Board (ISSB)
Sustainability Accounting
Standards Board Response (SASB)
Task Force on Climate-related
Financial Disclosure Response
(TCFD)
Terms We Use
Cautionary Statement Regarding
Forward-Looking Statements
Investor, Contact and Feedback
Information
173
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Notes to the Consolidated
Financial Statements
IV. Fuel price hedging
As of December 31, 2024 and 2023, Cemex maintained swap and option contracts negotiated to hedge the price of certain fuels in several operations,
primarily diesel and gas, for aggregate notional amounts of $134 and $110, respectively, with an estimated aggregate fair value representing assets of
$1 in 2024 and also in 2023. By means of these contracts, for its own consumption only, Cemex either fixed the price of these fuels, or entered into option
contracts to limit the prices to be paid for these fuels, over certain volumes representing a portion of the estimated consumption of such fuels in several
operations. These contracts have been designated as cash flow hedges of diesel or gas consumption, and as such, changes in fair value are recognized
temporarily through other equity reserves and are recycled to operating expenses as the related fuel volumes are consumed. For the years 2024, 2023 and
2022, changes in fair value of these contracts recognized in other equity reserves represented losses of $6, $6 and $25, respectively. Moreover, during the
same periods, Cemex recycled results from equity to the line items of “Cost of sales” and “Operating expenses,” as applicable, representing losses in 2024
and in 2023, of $5 and $7, respectively, and gains of $88 in 2022.
In addition, as of December 31, 2024 and 2023, Cemex held Brent oil call spreads with a notional of $150 and $122, respectively, intended economically to
mitigate the exposure over a portion of the diesel cost implicit in Cemex’s distribution expense. Changes in the fair value of these contracts are recognized
directly in the statement of income as part of “Financial income and other items, net” which resulted in losses of $8 in 2024 and losses of $1 in 2023.
Moreover, as of December 31, 2024, Cemex held coal call spreads with notional of $72, intended to economically mitigate the exposure over the petcoke
consumption in Cemex production process. Changes in the fair value of these contracts are recognized directly in the statement of income as part of
“Financial income and other items, net” which resulted in losses of $9.
V. Foreign exchange options
As of December 31, 2024 and 2023, Cemex held Dollar/Peso call spread option contracts for a notional amount of $650 and $300, respectively. Such
contracts mature between January 2026 and October 2026 and were negotiated to maintain the value in Dollars over an equivalent amount of revenue
generated in Pesos. Changes in the fair value of these instruments generated gains of $15 in 2024, losses of $18 in 2023 and $13 in 2022, recognized within
“Financial income and other items, net” in the statement of income.
17.5)
Risk Management
Enterprise risks may arise from any of the following situations: i) the potential change in the value of assets owned or reasonably anticipated to be owned, ii)
the potential change in value of liabilities incurred or reasonably anticipated to be incurred, iii) the potential change in value of services provided, purchase
or reasonably anticipated to be provided or purchased in the ordinary course of business, iv) the potential change in the value of assets, services, inputs,
products or commodities owned, produced, manufactured, processed, merchandised, leased or sold or reasonably anticipated to be owned, produced,
manufactured, processed, merchandised, leased or sold in the ordinary course of business, or v) any potential change in the value arising from interest rate
or foreign exchange rate exposures arising from current or anticipated assets or liabilities.
In the ordinary course of business, Cemex is exposed to commodities risk, including the exposure from inputs such as fuel, coal, petroleum coke, carbon
slags, gypsum and other industrial materials which are commonly used by Cemex in the production process, and expose Cemex to variations in prices of the
underlying commodities. To manage this and other risks, such as credit risk, interest rate risk, foreign exchange risk, equity risk and liquidity risk, considering
the guidelines set forth by the Parent Company’s Board of Directors, which represent Cemex’s risk management framework and that are supervised by
several Committees, Cemex’s management establishes specific policies that determine strategies oriented to obtain natural hedges to the extent possible,
such as avoiding customer concentration on a determined market or aligning the currencies portfolio in which Cemex incurred its debt, with those in which
Cemex generates its cash flows.
As of December 31, 2024 and 2023, these strategies are sometimes complemented with the use of derivative financial instruments as mentioned in note
17.4, such as the commodity forward contracts on fuels negotiated to fix the price of these underlying commodities.
The main risk categories are mentioned below:
Credit risk
Credit risk is the risk of economic loss faced by Cemex if a customer or counterparty to a financial instrument does not meet its contractual obligations
and originates mainly from trade accounts receivable. As of December 31, 2024 and 2023, the maximum exposure to credit risk is represented by the
balance of financial assets. Management has developed policies for the authorization of credit to customers. Exposure to credit risk is monitored constantly
according to the payment behavior of debtors. Credit is assigned on a customer-by-customer basis and is subject to assessments which consider the
customers’ payment capacity, as well as past behavior regarding due dates, balances past due and delinquent accounts. In cases deemed necessary,
Cemex’s management requires guarantees from its customers and financial counterparties regarding financial assets.
• Information
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Financial Performance
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Selected Consolidated Financial
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• Financial Information
Non-Financial Information
Scope and Boundaries of
This Report
Cemex’s Materiality Assessment
Stakeholder Engagement
Governance
EU Taxonomy
GRI Content Index
International Sustainability
Standards Board (ISSB)
Sustainability Accounting
Standards Board Response (SASB)
Task Force on Climate-related
Financial Disclosure Response
(TCFD)
Terms We Use
Cautionary Statement Regarding
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Investor, Contact and Feedback
Information
The Company’s management has established a policy of low risk tolerance that analyzes the creditworthiness of each client individually before offering the
general conditions of payment terms and delivery. The review includes external ratings when references are available and, in some cases, bank references.
Thresholds of purchase limits are established for each client, which represent the maximum purchase amounts that require various levels of approval.
Customers who do not meet the levels of solvency requirements imposed by Cemex are not granted with credit terms. As of December 31, 2024, Cemex’s
best estimate of potential expected losses based on the ECL model (note 10) was $77.
Interest rate risk
Interest rate risk is the risk that a financial instrument’s fair value or future cash flows will fluctuate because of changes in market interest rates, which
only affects Cemex’s results if the fixed-rate long-term debt is measured at fair value. Cemex’s fixed-rate long-term debt is carried at amortized cost
and therefore is not subject to interest rate risk. Cemex’s exposure to the risk of changes in market interest rates relates primarily to its long-term debt
obligations with floating interest rates, which, if such rates were to increase, may adversely affect its financing cost and the results for the period.
Additionally, there is an opportunity cost for continuing to pay a determined fixed interest rate when the market rates have decreased, and the entity may
obtain improved interest rate conditions in a new loan or debt issuance. Cemex manages its interest rate risk by balancing its exposure to fixed and floating
rates while attempting to reduce its interest costs. Cemex could renegotiate the conditions or repurchase the debt, particularly when the net present value
(“NPV”) of the estimated future benefits from the interest rate reduction is expected to exceed the cost and commissions that would have to be paid in such
renegotiation or repurchase of debt.
As of December 31, 2024 and 2023, 24% and 26%, respectively, of Cemex’s long-term debt was denominated in floating rates at a weighted-average
interest rate of SOFR plus 95 basis points in 2024 and 95 basis points in 2023. These figures reflect the effect of interest rate swaps held by Cemex during
2024 and 2023. As of December 31, 2024 and 2023, if interest rates at that date had been 0.5% higher, with all other variables held constant, Cemex’s
net income for 2024 and 2023 would have reduced by $14 and $14, respectively, because of higher interest expense on variable rate denominated debt.
Conversely, a hypothetical 0.5% decrease in interest rates would have the opposite effect. This analysis does not include the effect of interest rate swaps
held by Cemex during 2024 and 2023.
Foreign currency risk
Foreign currency risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates.
Cemex’s exposure to the risk of changes in foreign exchange rates relates primarily to its operating activities. Due to its geographic diversification, Cemex’s
revenues and costs are generated and settled in various countries and different currencies. For the year ended December 31, 2024, 29% of Cemex’s external
revenues were generated in Mexico, 32% in the United States, 6% in the United Kingdom, 5% in France, 3% in Germany, 3% in Poland, 3% in Spain, 4% in Israel and
5% in the Rest of EMEA region, 3% in Colombia, 1% in Panama, 2% in Caribbean TCL and 2% in the Rest of SCA&C, and 2% in other activities.
Foreign exchange results incurred through monetary assets or liabilities in a currency different from its functional currency are recorded in the consolidated
statements of income. Exchange fluctuations associated with foreign currency indebtedness related to the acquisition of foreign entities and exchange
fluctuations in related parties’ long-term balances denominated in foreign currency that are not expected to be settled in the foreseeable future, are
recognized in the statement of other comprehensive income. As of December 31, 2024, excluding from the sensitivity analysis the impact of translating
the net assets denominated in currencies different from Cemex’s presentation currency, considering a hypothetical 10% strengthening of the Dollar against
the Peso, with all other variables held constant, Cemex’s net income for 2024 would have decreased by $183, as a result of higher foreign exchange
losses on Cemex’s Dollar-denominated net monetary liabilities held in consolidated entities with other functional currencies. Conversely, a hypothetical 10%
weakening of the Dollar against the Peso would have the opposite effect.
As of December 31, 2024, 68% of Cemex’s financial debt was Dollar-denominated, 16% was Euro-denominated, 15% was Peso-denominated and 1% was
in other currencies. Therefore, Cemex had a foreign currency exposure arising mainly from the Dollar-denominated debt versus the several currencies
in which Cemex’s revenues are settled in most countries in which it operates. Cemex cannot guarantee that it will generate sufficient revenues in Dollars
from its operations to service these obligations. As of December 31, 2024, Cemex had implemented a derivative financing hedging strategy using foreign
exchange options for a notional amount of $650 to hedge the value in Dollar terms of revenues generated in Pesos to partially address this foreign currency
risk (note 17.4). Complementarily, Cemex may negotiate other derivative financing hedging strategies in the future if either of its debt portfolio currency
mix, interest rate mix, market conditions and/or economic expectations changes.
175
Cemex 2024 Integrated Report
Notes to the Consolidated
Financial Statements
Contents
Our Company
Our Strategy
Financial Performance
Environmental Excellence
Stakeholder Engagement
Governance
Appendix
Selected Consolidated Financial
Information
• Financial Information
Non-Financial Information
Scope and Boundaries of
This Report
Cemex’s Materiality Assessment
Stakeholder Engagement
Governance
EU Taxonomy
GRI Content Index
International Sustainability
Standards Board (ISSB)
Sustainability Accounting
Standards Board Response (SASB)
Task Force on Climate-related
Financial Disclosure Response
(TCFD)
Terms We Use
Cautionary Statement Regarding
Forward-Looking Statements
Investor, Contact and Feedback
Information
As of December 31, 2024 and 2023, Cemex’s consolidated net monetary assets (liabilities) by currency are as follows:
2024
Mexico
United States
EMEA
SCA&C
Others 1
Total
Monetary assets
$
1,683
648
1,216
241
338
4,126
Monetary liabilities
1,859
2,893
2,699
701
6,352
14,504
Net monetary assets (liabilities)
$
(176)
(2,245)
(1,483)
(460)
(6,014)
(10,378)
Out of which:
Dollars
$
(149)
(2,248)
(16)
(24)
(4,087)
(6,524)
Pesos
(27)
—
—
—
(797)
(824)
Euros
—
—
(606)
—
(1,278)
(1,884)
Pounds
—
—
(601)
—
85
(516)
Other currencies
—
3
(260)
(436)
63
(630)
$
(176)
(2,245)
(1,483)
(460)
(6,014)
(10,378)
2023
Mexico
United States
EMEA
SCA&C
Others 1
Total
Monetary assets
$
1,627
651
1,491
274
(241)
3,802
Monetary liabilities
2,184
2,679
3,087
730
7,179
15,859
Net monetary assets (liabilities)
$
(557)
(2,028)
(1,596)
(456)
(7,420)
(12,057)
Out of which:
Dollars
$
(157)
(2,030)
(5)
(61)
(4,780)
(7,033)
Pesos
(400)
—
—
—
(524)
(924)
Euros
—
—
(660)
—
(1,563)
(2,223)
Pounds
—
—
(710)
—
97
(613)
Other currencies
—
2
(221)
(395)
(650)
(1,264)
$
(557)
(2,028)
(1,596)
(456)
(7,420)
(12,057)
1
Includes the Parent Company, Cemex’s financing subsidiaries, among other entities.
Considering that the Parent Company’s functional currency for its financial and holding company activities is the Dollar (note 29.3), foreign currency risk is
associated with the translation into Dollars of subsidiaries’ net assets denominated in different currencies. When the Dollar appreciates, the value of these
net assets denominated in other currencies decreases in terms of Dollars, generating negative foreign currency translation and reducing stockholders’ equity.
Conversely, when the Dollar depreciates, the value of such net assets denominated in other currencies would increase in terms of Dollars generating the
opposite effect. Cemex has implemented a Dollar/Peso foreign exchange forward contracts program to hedge foreign currency translation in connection
with its net assets denominated in Pesos (note 17.4).
Equity risk
Equity risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate in connection with changes in the market price of Cemex,
S.A.B. de C.V.’s and/or third party’s shares. Under these equity derivative instruments, there is a direct relationship between the change in the fair value
of the derivative and the change in price of the underlying share. All changes in the fair value of such derivative instruments, with certain exemptions for
physically-only settled instruments, would be recognized in the statement of income as part of “Financial income and other items, net.” Although Cemex
has negotiated equity forward contracts on its own shares and third-party shares in the past, during 2024, 2023 and 2022, Cemex did not have derivative
financial instruments based on the price of the Parent Company’s shares or any third-party’s shares.
176
Cemex 2024 Integrated Report
Notes to the Consolidated
Financial Statements
Contents
Our Company
Our Strategy
Financial Performance
Environmental Excellence
Stakeholder Engagement
Governance
Appendix
Selected Consolidated Financial
Information
• Financial Information
Non-Financial Information
Scope and Boundaries of
This Report
Cemex’s Materiality Assessment
Stakeholder Engagement
Governance
EU Taxonomy
GRI Content Index
International Sustainability
Standards Board (ISSB)
Sustainability Accounting
Standards Board Response (SASB)
Task Force on Climate-related
Financial Disclosure Response
(TCFD)
Terms We Use
Cautionary Statement Regarding
Forward-Looking Statements
Investor, Contact and Feedback
Information
Liquidity risk
Liquidity risk is the risk that Cemex will not have sufficient funds available to meet its obligations. In addition to cash flows provided by its operating activities,
to meet Cemex’s overall liquidity needs for operations, servicing debt and funding capital expenditures and other acquisitions, Cemex relies on cost-cutting
and operating improvements to optimize capacity utilization and maximize profitability, as well as borrowing under credit facilities, proceeds of debt and
equity offerings, and proceeds from asset sales. Cemex is exposed to risks from changes in foreign currency exchange rates, prices and currency controls,
interest rates, inflation, governmental spending, social instability and other political, economic and/or social developments in the countries in which it
operates, any one of which may materially affect Cemex’s results and reduce cash from operations. The maturities of Cemex’s contractual obligations are
included in note 24.1.
As of December 31, 2024, current liabilities, which included $1,116 of current debt and other financial obligations, exceed current assets by $1,076. It is
noted that as part of its operating strategy implemented by management, the Company operates with a negative working capital balance. For the year
ended December 31, 2024, Cemex generated net cash flows from operating activities of $1,894. The Company’s management considers that Cemex will
generate sufficient cash flows from operations in the following twelve months to meet its current obligations. In addition, as of December 31, 2024, Cemex
has a committed line of credit under the RCF for $2,311. As of December 31, 2024, the total amount of the RCF was available for Cemex.
18)
Trade Accounts Payable, other Current Liabilities and Non-Current Liabilities
18.1)
Trade Accounts Payable
Supplier Finance Agreements
To enhance its supplier’s liquidity needs, Cemex has acted as mediator with financial institutions in several countries to establish productive supply chain
programs, by means of which, any supplier registered under the program may elect to sell its account receivable from Cemex to the financial institution
before the receivable’s agreed payment date. Any financial cost under these programs is assumed directly by Cemex’s suppliers. The accounts payable
sold by the Company’s suppliers to these financial institutions are settled by Cemex at their original agreed due dates without extending the payment date
further. As of December 31, 2024 and 2023, the consolidated balances of trade payables in the statements of financial position include $999 in 2024 and
$972 in 2023 of trade payables outstanding under these productive supply chain programs with an average payment term of 92 days. These programs do
not involve any additional cash flow risk to Cemex.
The balance of any trade accounts payable would be classified as debt whenever the originally agreed payment terms would be extended using the
aforementioned programs with the financial institutions. As of December 31, 2024 and 2023, there are no debt balances arising from trade accounts
payable.
18.2)
Other Current Liabilities
As of December 31, 2024 and 2023, consolidated other current liabilities were as follows:
2024
2023
Other accounts payable and accrued expenses 1
$
569
656
Provisions 2
399
492
Contract liabilities with customers (note 3) 3
269
384
Interest payable
89
88
$
1,326
1,620
1
Other accounts payable and accrued expenses mainly refer to accrued fixed and variable employee benefits, insurance payments and accruals for public services. These amounts are revolving in nature and are
expected to be settled and replaced by similar amounts within the next 12 months.
2
Current provisions are detailed by concept in note 18.3 below.
3
As of December 31, 2024 and 2023, contract liabilities with customers included $225 and $339, respectively, of advances received from customers, as well as in 2024 and 2023 the current portion of deferred
revenues in connection with advances under long-term clinker supply agreements of $5 in both years. Note 3 includes the changes during the period of this caption.
177
Cemex 2024 Integrated Report
Notes to the Consolidated
Financial Statements
Contents
Our Company
Our Strategy
Financial Performance
Environmental Excellence
Stakeholder Engagement
Governance
Appendix
Selected Consolidated Financial
Information
• Financial Information
Non-Financial Information
Scope and Boundaries of
This Report
Cemex’s Materiality Assessment
Stakeholder Engagement
Governance
EU Taxonomy
GRI Content Index
International Sustainability
Standards Board (ISSB)
Sustainability Accounting
Standards Board Response (SASB)
Task Force on Climate-related
Financial Disclosure Response
(TCFD)
Terms We Use
Cautionary Statement Regarding
Forward-Looking Statements
Investor, Contact and Feedback
Information
18.3)
Other Non-Current Liabilities
As of December 31, 2024 and 2023, consolidated other non-current liabilities were as follows:
2024
2023
Asset retirement obligations 1
$
563
470
Environmental liabilities 2
203
250
Accruals for legal assessments and other responsibilities 3
95
100
Non-current liabilities for valuation of derivative instruments
100
15
Other non-current liabilities and provisions 4
420
329
$
1,381
1,164
1
Provisions for asset retirement obligations include future estimated costs for demolition, cleaning and reforestation of production sites at the end of their operation, which are initially recognized against the
related assets and are depreciated over their estimated useful life.
2
Environmental liabilities include future estimated costs arising from legal or constructive obligations, related to cleaning, reforestation and other remedial actions to remediate damage caused to the environment.
The expected average period to settle these obligations is greater than 15 years.
3
Provisions for legal claims and other responsibilities include items related to tax contingencies.
4
As of December 31, 2024 and 2023, the balance includes deferred revenues of $17 and $22, respectively, that are amortized to the statement of income as deliverables are fulfilled over the maturity of long-
term clinker supply agreements.
Changes in consolidated non-current other liabilities plus current provisions for the years 2024 and 2023, were as follows:
2024
Asset
retirement
obligations
Environmental
liabilities
Accruals
for legal
proceedings
Valuation of
derivative
instruments
Other liabilities
and provisions
Total
2023
Balance at beginning of period
$
573
279
105
95
604
1,656
1,341
Additions or increase in estimates
63
6
45
123
158
395
532
Releases or decrease in estimates
(12)
(52)
(41)
(118)
(95)
(318)
(314)
Accretion expense
38
—
—
—
15
53
42
Foreign currency translation
26
(5)
(8)
—
(19)
(6)
55
Balance at end of period
$
688
228
101
100
663
1,780
1,656
Out of which:
Current provisions
$
125
25
6
—
243
399
492
Other non-current liabilities
563
203
95
100
420
1,381
1,164
178
Cemex 2024 Integrated Report
Notes to the Consolidated
Financial Statements
Contents
Our Company
Our Strategy
Financial Performance
Environmental Excellence
Stakeholder Engagement
Governance
Appendix
Selected Consolidated Financial
Information
• Financial Information
Non-Financial Information
Scope and Boundaries of
This Report
Cemex’s Materiality Assessment
Stakeholder Engagement
Governance
EU Taxonomy
GRI Content Index
International Sustainability
Standards Board (ISSB)
Sustainability Accounting
Standards Board Response (SASB)
Task Force on Climate-related
Financial Disclosure Response
(TCFD)
Terms We Use
Cautionary Statement Regarding
Forward-Looking Statements
Investor, Contact and Feedback
Information
19)
Pensions and Post-Employment Benefits
Defined contribution pension plans
The consolidated costs of defined contribution plans for the years ended December 31, 2024, 2023 and 2022 were $74, $64 and $59, respectively.
Cemex contributes periodically the amounts offered by the pension plan to the employee’s individual accounts, not retaining any remaining liability as
of the financial statements’ date.
Defined benefit pension plans
Most of Cemex’s defined benefit plans have been closed to new participants for several years. Actuarial results related to pension and other post-
employment benefits are recognized in earnings and/or in “Other comprehensive income” for the period in which they are generated, as appropriate.
For the years ended December 31, 2024, 2023 and 2022, the effects of pension plans and other post-employment benefits are summarized as follows:
Pensions
Other benefits
Total
Net period cost (income):
2024
2023
2022
2024
2023
2022
2024
2023
2022
Recorded in operating costs and expenses
Service cost
$
7
6
7
4
4
4
11
10
11
Past service cost
—
—
1
—
—
—
—
—
1
Settlements, curtailments and other changes
—
(9)
2
—
(1)
—
—
(10)
2
7
(3)
10
4
3
4
11
—
14
Recorded in other financial expenses
Net interest cost
32
36
22
8
8
6
40
44
28
Recorded in other comprehensive income
Actuarial (gains) losses for the period
(75)
46
(166)
1
(1)
(10)
(74)
45
(176)
$
(36)
79
(134)
13
10
—
(23)
89
(134)
As of December 31, 2024 and 2023, the reconciliation of the actuarial benefits’ obligations and pension plan assets, are presented as follows:
Pensions
Other benefits
Total
2024
2023
2024
2023
2024
2023
Change in benefits obligation:
Projected benefit obligation at beginning of the period
$
1,909
1,811
101
92
2,010
1,903
Service cost
7
6
4
4
11
10
Interest cost
97
100
8
8
105
108
Actuarial (gains) losses
(159)
30
1
(1)
(158)
29
Reduction from disposal of assets
(17)
2
—
—
(17)
2
Settlements and curtailments
—
(2)
—
—
—
(2)
Plan amendments
—
(10)
—
(1)
—
(11)
Benefits paid
(160)
(122)
(10)
(8)
(170)
(130)
Foreign currency translation
(65)
94
(12)
7
(77)
101
Projected benefit obligation at end of the period
1,612
1,909
92
101
1,704
2,010
Change in plan assets:
Fair value of plan assets at beginning of the period
1,273
1,207
2
1
1,275
1,208
Return on plan assets
65
64
—
—
65
64
Actuarial losses
(84)
(16)
—
—
(84)
(16)
Employer contributions
85
97
10
8
95
105
Reduction from disposal of assets
(13)
1
—
—
(13)
1
Settlements
—
(2)
—
—
—
(2)
Benefits paid
(160)
(122)
(10)
(8)
(170)
(130)
Foreign currency translation
(22)
44
(1)
1
(23)
45
Fair value of plan assets at end of the period
1,144
1,273
1
2
1,145
1,275
Net projected liability in the statement of financial position
$
468
636
91
99
559
735
179
Cemex 2024 Integrated Report
Notes to the Consolidated
Financial Statements
Contents
Our Company
Our Strategy
Financial Performance
Environmental Excellence
Stakeholder Engagement
Governance
Appendix
Selected Consolidated Financial
Information
• Financial Information
Non-Financial Information
Scope and Boundaries of
This Report
Cemex’s Materiality Assessment
Stakeholder Engagement
Governance
EU Taxonomy
GRI Content Index
International Sustainability
Standards Board (ISSB)
Sustainability Accounting
Standards Board Response (SASB)
Task Force on Climate-related
Financial Disclosure Response
(TCFD)
Terms We Use
Cautionary Statement Regarding
Forward-Looking Statements
Investor, Contact and Feedback
Information
For the years 2024, 2023 and 2022, actuarial (gains) losses for the period were generated by the following main factors as follows:
2024
2023
2022
Actuarial (gains) losses due to experience
$
(26)
13
96
Actuarial (gains) losses due to demographic assumptions
(28)
(5)
(2)
Actuarial (gains) losses due to financial assumptions
(20)
37
(270)
$
(74)
45
(176)
In 2024, net actuarial gains due to financial assumptions were driven by a general increase in the discount rates applicable to the calculation of the Projected
Benefit Obligation (“PBO”), mainly in the United Kingdom, Mexico and the United States, partially offset by lower returns in plan assets than estimated for
a total of $84, of which $66 refers to the United Kingdom, $18 to the United States and $9 to Mexico. In addition, the actuarial gains due to experience for
$26 and due to demographic assumptions of $28 were mainly generated in the United Kingdom.
In 2023, net actuarial losses due to financial assumptions were mainly driven by a decrease in the discount rates applicable to the calculation of the PBO in the
United Kingdom, the United States, Germany, Colombia and Poland. Moreover, the overall net actual return on plan assets in most countries were less than the
expected returns for a total of $16, of which $31 referred to the United Kingdom, partially offset by a higher performance than expected in Mexico of $12 and
the United States of $8. In addition, the PBO increased by adjustments due to experience for $13, mainly in the United Kingdom and Germany.
In 2022, net actuarial gains due to financial assumptions were driven by a general increase in the discount rates applicable to the calculation of the PBO in the
United Kingdom, the United States, Germany, and Mexico, partially offset by actual returns in plan assets lower than estimated for a total of $466, of which
$373 referred to the United Kingdom, $52 to the United States and $19 to Mexico. In addition, the PBO increased significantly related to adjustments due to
experience for $96, mainly in the United Kingdom for $77 and Germany for $13. Adjustments in demographic assumptions of $2 were not significant.
As of December 31, 2024 and 2023, based on the hierarchy of fair values, plan assets are detailed as follows:
2024
2023
Level 1
Level 2
Level 3
Total
Level 1
Level 2
Level 3
Total
Cash
$
25
—
—
25
$
24
—
—
24
Investments in corporate bonds
237
46
—
283
11
391
—
402
Investments in government bonds
339
—
—
339
114
209
—
323
Total fixed-income securities
601
46
—
647
149
600
—
749
Investment in marketable securities
127
73
—
200
179
43
—
222
Other investments and private funds
44
32
222
298
70
33
201
304
Total variable-income securities
171
105
222
498
249
76
201
526
Total plan assets
$
772
151
222
1,145
$
398
676
201
1,275
The most significant assumptions used in the determination of the benefit obligation were as follows:
2024
2023
Mexico
United
States
United
Kingdom
Range of rates in
other countries
Mexico
United
States
United
Kingdom
Range of rates in
other countries
Discount rates
11.8%
5.7%
5.6%
3.3% – 9.5%
10.5%
5.2%
4.7%
3.1% – 11.0%
Rate of return on plan assets
11.8%
5.7%
5.6%
3.3% – 9.5%
10.5%
5.2%
4.7%
3.1% – 11.0%
Rate of salary increases
4.5%
—
3.2%
2.5% – 7.3%
4.5%
—
3.1%
2.5% – 7.3%
180 Cemex 2024 Integrated Report
Notes to the Consolidated
Financial Statements
Contents
Our Company
Our Strategy
Financial Performance
Environmental Excellence
Stakeholder Engagement
Governance
Appendix
Selected Consolidated Financial
Information
• Financial Information
Non-Financial Information
Scope and Boundaries of
This Report
Cemex’s Materiality Assessment
Stakeholder Engagement
Governance
EU Taxonomy
GRI Content Index
International Sustainability
Standards Board (ISSB)
Sustainability Accounting
Standards Board Response (SASB)
Task Force on Climate-related
Financial Disclosure Response
(TCFD)
Terms We Use
Cautionary Statement Regarding
Forward-Looking Statements
Investor, Contact and Feedback
Information
As of December 31, 2024, estimated payments for pensions and other post-employment benefits over the next 10 years were as follows:
Estimated payments
2025
$
156
2026
135
2027
133
2028
133
2029 – 2034
803
As of December 31, 2024 and 2023, the aggregate PBO for pension plans and other post-employment benefits and the plan assets by country were as
follows:
2024
2023
PBO
Assets
Deficit
PBO
Assets
Deficit
Mexico
$
200
30
170
$
253
44
209
United States
142
143
(1)
184
188
(4)
United Kingdom
960
752
208
1,129
821
308
Germany
121
5
116
141
6
135
Other countries
281
215
66
303
216
87
$
1,704
1,145
559
$
2,010
1,275
735
In some countries, Cemex has established health care benefits for retired personnel limited to a certain number of years after retirement. As of December
31, 2024 and 2023, the projected benefits obligation related to these benefits was $51 and $57, respectively, included within other benefits liability. The
medical inflation rates used to determine the PBO of these benefits in 2024 and 2023 for Mexico were 8.0% and 8.0%, respectively, for Puerto Rico 7.0% in
2024 and 6.6% in 2023, for the United Kingdom were 6.7% in 2024 and 6.6% in 2023, and for TCL was a range between 5.0% and 8.0% in 2024 and 5.0%
and 9.0% in 2023.
Significant settlements or curtailments related to employees’ pension benefits and other post-employment benefits during the reported periods
During 2024, there were no significant settlements or curtailments related to employees’ pension benefits and other post-employment benefits.
In 2023 as a result of an extension in the retirement age for the Company’s operations in Mexico, there was a reduction of $11 in the retirement obligations
recognized against the statement of income for the period. Additionally, in France, there was a pension reform that increased the legal minimum retirement
age, resulting in a total past service amendment of $1 in its pension plan recognized in the statement of income for the period.
During 2022, there were no significant settlements or curtailments related to employees’ pension benefits and other post-employment benefits.
Sensitivity analysis of pension and other post-employment benefits
As of December 31, 2024, Cemex performed sensitivity analyses on the most significant assumptions that affect the PBO, considering reasonable
independent changes of plus or minus 50 basis points in each of these assumptions. The increase (decrease) that would have resulted in the PBO of pensions
and other post-employment benefits are shown below:
Pensions
Other benefits
Total
Assumptions:
+50 bps
-50 bps
+50 bps
-50 bps
+50 bps
-50 bps
Discount Rate Sensitivity
$
(75)
83
(3)
3
(78)
86
Salary Increase Rate Sensitivity
4
(4)
1
(1)
5
(5)
Pension Increase Rate Sensitivity
56
(54)
—
—
56
(54)
181
Cemex 2024 Integrated Report
Notes to the Consolidated
Financial Statements
Contents
Our Company
Our Strategy
Financial Performance
Environmental Excellence
Stakeholder Engagement
Governance
Appendix
Selected Consolidated Financial
Information
• Financial Information
Non-Financial Information
Scope and Boundaries of
This Report
Cemex’s Materiality Assessment
Stakeholder Engagement
Governance
EU Taxonomy
GRI Content Index
International Sustainability
Standards Board (ISSB)
Sustainability Accounting
Standards Board Response (SASB)
Task Force on Climate-related
Financial Disclosure Response
(TCFD)
Terms We Use
Cautionary Statement Regarding
Forward-Looking Statements
Investor, Contact and Feedback
Information
Multiemployer defined benefit pension plans
In addition to the Company’s sponsored plans, Cemex contributes to union-sponsored multiemployer retirement defined benefit pension plans (the
“Multiemployer Plans”) under the terms of collective bargaining agreements for certain union employees in the United States and the United Kingdom. The
Company’s main risks of participating in Multiemployer Plans are different from its single-employer plans in the following aspects:
a) Assets contributed to the Multiemployer Plans by one employer may be used to provide benefits to employees of other participating employers;
b) If a participating employer stops contributing to the Multiemployer Plans, the unfunded obligations of the Multiemployer Plans may be borne by the
remaining participating employers; and
c) If Cemex chooses to stop participating in the Multiemployer Plans, the Company may be required to pay the Multiemployer Plans an amount based
on the underfunded status of the Multiemployer Plans, referred to as a withdrawal liability.
The Company’s funding arrangements, rate of contributions and funding requirements were made in accordance with the contractual multiemployer
agreements. The combined amounts contributed to the Multiemployer Plans were $19 in 2024, $20 in 2023 and $21 in 2022. The Company expects to
contribute $20 to the Multiemployer Plans in 2025.
Among other factors, Multiemployer Plans in the red zone (critical) are generally less than 65% funded, Multiemployer Plans in the yellow zone (endangered)
are less than 80% funded and Multiemployer Plans in the green zone (neither critical and declining, critical, or endangered) are at least 80% funded. Over 99%
of Cemex’s obligations and contributions under the Multiemployer Plans are related to the United States where 461 former employees are beneficiaries and
where, according to data obtained from Multiemployer Plans actuary, most of the plans are considered to be in the green zone and one plan is in the yellow zone.
As a result, the Company’s risk of increasing contributions is considered low. In the United Kingdom, the Multiemployer Plan, which covers only two of Cemex’s
former employees, is in the green zone. In both the United States and the United Kingdom, Cemex is a small participant in the applicable Multiemployer Plans.
20)
Income Taxes
20.1)
Income Taxes for the Period
The amounts of income tax expense in the statements of income for 2024, 2023 and 2022 are summarized as follows:
2024
2023
2022
Current income tax expense 1
$
343
1,101
129
Deferred income tax (benefit) expense
(276)
103
39
$
67
1,204
168
1
In 2024 includes minimum taxes which were not material (note 29.10).
182
Cemex 2024 Integrated Report
Notes to the Consolidated
Financial Statements
Contents
Our Company
Our Strategy
Financial Performance
Environmental Excellence
Stakeholder Engagement
Governance
Appendix
Selected Consolidated Financial
Information
• Financial Information
Non-Financial Information
Scope and Boundaries of
This Report
Cemex’s Materiality Assessment
Stakeholder Engagement
Governance
EU Taxonomy
GRI Content Index
International Sustainability
Standards Board (ISSB)
Sustainability Accounting
Standards Board Response (SASB)
Task Force on Climate-related
Financial Disclosure Response
(TCFD)
Terms We Use
Cautionary Statement Regarding
Forward-Looking Statements
Investor, Contact and Feedback
Information
20.2) Deferred Income Taxes
As of December 31, 2024 and 2023, the main temporary differences that generated the consolidated deferred income tax assets and liabilities are
presented below:
2024
2023
Deferred tax assets:
Tax loss carryforwards and other tax credits
$
446
445
Accounts payable and accrued expenses
1,084
883
Intangible assets, net and other
130
203
Total deferred tax assets, gross
1,660
1,531
Presentation of net position by same legal entity
(987)
(1,168)
Total deferred tax asset, net in the statement of financial position
673
363
Deferred tax liabilities:
Property, machinery and equipment and right-of-use asset, net
(1,298)
(1,470)
Investments and other assets
(237)
(141)
Total deferred tax liabilities, gross
(1,535)
(1,611)
Presentation of net position by same legal entity
987
1,168
Total deferred tax liabilities, net in the statement of financial position
(548)
(443)
Net deferred tax assets (liabilities)
$
125
(80)
Out of which:
Net deferred tax assets in Mexican entities
$
393
67
Net deferred tax liabilities in foreign entities
(268)
(147)
Net deferred tax assets (liabilities)
$
125
(80)
As of December 31, 2024 and 2023, balances of the deferred tax assets and liabilities included in the statement of financial position are located in the
following entities:
2024
2023
Assets
Liabilities
Net
Assets
Liabilities
Net
Mexican entities
$
518
(125)
393
$
185
(118)
67
Foreign entities
155
(423)
(268)
178
(325)
(147)
$
673
(548)
125
$
363
(443)
(80)
The breakdown of changes in consolidated deferred income taxes during 2024, 2023 and 2022 was as follows:
2024
2023
2022
Deferred income tax (benefit) expense in the statement of income
$
(276)
103
39
Deferred income tax expense (benefit) in stockholders’ equity
57
(6)
14
Reclassifications 1
14
—
7
Change in deferred income tax during the period
$
(205)
97
60
1
In 2024 and 2022, refers to the effects of the reclassification of balances to assets held for sale and related liabilities (note 4.2).
183
Cemex 2024 Integrated Report
Notes to the Consolidated
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Contents
Our Company
Our Strategy
Financial Performance
Environmental Excellence
Stakeholder Engagement
Governance
Appendix
Selected Consolidated Financial
Information
• Financial Information
Non-Financial Information
Scope and Boundaries of
This Report
Cemex’s Materiality Assessment
Stakeholder Engagement
Governance
EU Taxonomy
GRI Content Index
International Sustainability
Standards Board (ISSB)
Sustainability Accounting
Standards Board Response (SASB)
Task Force on Climate-related
Financial Disclosure Response
(TCFD)
Terms We Use
Cautionary Statement Regarding
Forward-Looking Statements
Investor, Contact and Feedback
Information
Current and/or deferred income tax relative to items of other comprehensive income during 2024, 2023 and 2022 were as follows:
2024
2023
2022
Expense related to foreign exchange fluctuations from intercompany balances (note 21.2)
$
—
5
—
Expense (benefit) associated to actuarial results (note 21.2)
11
(5)
32
Expense (benefit) related to derivative financial instruments (note 17.4)
4
(41)
(30)
Expense from foreign currency translation and other effects
33
35
12
$
48
(6)
14
As of December 31, 2024, consolidated tax loss and tax credits carryforwards expire as follows:
Amount of
carryforwards
Amount of
unrecognized
carryforwards
Amount of
recognized
carryforwards
2025
$
26
18
8
2026
44
24
20
2027
50
18
32
2028
45
20
25
2029 and thereafter
6,348
4,668
1,680
$
6,513
4,748
1,765
As of December 31, 2024, in connection with Cemex’s deferred tax loss carryforwards presented in the table above, to realize the benefits associated
with such deferred tax assets that have been recognized, before their expiration, Cemex would need to generate $1,765 in consolidated pre-tax income in
future periods. Based on the same forecasts of future cash flows and operating results used by Cemex’s management to allocate resources and evaluate
performance in the countries in which Cemex operates, along with the implementation of feasible tax strategies, Cemex believes that it will recover the
balance of its tax loss carryforwards that have been recognized before their expiration. In addition, Cemex concluded that the deferred tax liabilities
considered in the analysis of recoverability of its deferred tax assets will reverse in the same period and tax jurisdiction of the related recognized deferred
tax assets. Moreover, a certain amount of Cemex’s deferred tax assets refers to operating segments and tax jurisdictions in which Cemex is currently
generating taxable income or in which, according to Cemex’s management cash flow projections, will generate taxable income in the relevant periods
before the expiration of the deferred tax assets.
The Parent Company does not recognize a deferred income tax liability related to its investments in subsidiaries considering that Cemex controls the
reversal of the temporary differences arising from these investments and management is satisfied that such temporary differences will not reverse in the
foreseeable future.
20.3) Reconciliation of Effective Income Tax Rate
For the years ended December 31, 2024, 2023 and 2022, the effective consolidated income tax rates were as follows:
2024
2023
2022
Earnings before income tax
$
980
1,323
570
Income tax expense
(67)
(1,204)
(168)
Effective consolidated income tax expense rate 1, 2
6.8%
91.0%
29.5%
1
The average effective tax rate equals the net amount of income tax benefit or expense divided by income or loss before income taxes, as these line items are reported in the statements of income.
2
Note 29.10 includes the statutory income tax rates of the main countries in which Cemex operates.
184
Cemex 2024 Integrated Report
Notes to the Consolidated
Financial Statements
Contents
Our Company
Our Strategy
Financial Performance
Environmental Excellence
Stakeholder Engagement
Governance
Appendix
Selected Consolidated Financial
Information
• Financial Information
Non-Financial Information
Scope and Boundaries of
This Report
Cemex’s Materiality Assessment
Stakeholder Engagement
Governance
EU Taxonomy
GRI Content Index
International Sustainability
Standards Board (ISSB)
Sustainability Accounting
Standards Board Response (SASB)
Task Force on Climate-related
Financial Disclosure Response
(TCFD)
Terms We Use
Cautionary Statement Regarding
Forward-Looking Statements
Investor, Contact and Feedback
Information
Differences between the financial reporting and the corresponding tax basis of assets and liabilities and the different income tax rates and laws applicable
to Cemex, among other factors, give rise to permanent differences between the statutory tax rate applicable in Mexico, and the effective tax rate presented
in the consolidated statements of income, which in 2024, 2023 and 2022 were as follows:
2024
2023
2022
%
$
%
$
%
$
Mexican statutory tax rate
30.0 %
294
30.0 %
397
30.0 %
171
Income tax penalties in Spain (note 20.4)
—
—
46.9 %
620
—
—
Difference between accounting and tax expenses, net 1
(9.2)%
(90)
0.4 %
6
48.4 %
276
Non-taxable sale of equity securities and fixed assets 2
(10.6)%
(104)
(1.3)%
(17)
4.6 %
26
Difference between book and tax inflation
6.1 %
60
9.1 %
120
38.1 %
217
Differences in the income tax rates in the countries where Cemex operates 3
2.5 %
24
7.7 %
103
(8.4)%
(48)
Changes in deferred tax assets 4
(10.1)%
(99)
(4.3)%
(57)
(80.7)%
(460)
Changes in provisions for uncertain tax positions
1.1 %
11
0.1 %
1
(6.8)%
(39)
Others
(3.0)%
(29)
2.4 %
31
4.3 %
25
Effective consolidated income tax expense rate
6.8 %
67
91.0 %
1,204
29.5 %
168
1
In 2022, includes $365 related to the effects of impairment charges during the period which are basically non-deductible for tax purposes (note 7).
2
In 2024, includes $72 related to non-taxable income from the sale of shares of subsidiaries and associates during the period.
3
Refers to the effects of the differences between the statutory income tax rate in Mexico of 30% and the applicable income tax rates of each country where Cemex operates.
4
Refers to the effects in the effective income tax rate associated with changes during the period in the amount of deferred income tax assets related to Cemex’s tax loss carryforwards.
The following table compares the line item “Changes in deferred tax assets” as presented in the table above against the changes in deferred tax assets in
the statement of financial position for the years ended December 31, 2024 and 2023:
2024
2023
Changes in the
statement of
financial position
Amounts in
reconciliation
Changes in the
statement of
financial position
Amounts in
reconciliation
Tax loss carryforwards generated and not recognized during the year
$
—
89
—
45
Derecognition related to tax loss carryforwards recognized in prior years
(100)
—
(125)
—
Recognition related to unrecognized tax loss carryforwards
105
(186)
12
(105)
Foreign currency translation and other effects
(4)
(2)
(3)
3
Changes in deferred tax assets
$
1
(99)
(116)
(57)
185
Cemex 2024 Integrated Report
Notes to the Consolidated
Financial Statements
Contents
Our Company
Our Strategy
Financial Performance
Environmental Excellence
Stakeholder Engagement
Governance
Appendix
Selected Consolidated Financial
Information
• Financial Information
Non-Financial Information
Scope and Boundaries of
This Report
Cemex’s Materiality Assessment
Stakeholder Engagement
Governance
EU Taxonomy
GRI Content Index
International Sustainability
Standards Board (ISSB)
Sustainability Accounting
Standards Board Response (SASB)
Task Force on Climate-related
Financial Disclosure Response
(TCFD)
Terms We Use
Cautionary Statement Regarding
Forward-Looking Statements
Investor, Contact and Feedback
Information
20.4) Uncertain Tax Positions and Significant Tax Proceedings
Uncertain tax positions
As of December 31, 2024 and 2023, as part of current provisions and non-current other liabilities (note 18), Cemex has recognized provisions related to
unrecognized tax benefits in connection with uncertain tax positions taken, in which it is deemed probable that the tax authorities would differ from the
position adopted by Cemex. As of December 31, 2024, the tax returns submitted by some subsidiaries of Cemex located in several countries are under
review by the respective tax authorities in the ordinary course of business. Cemex cannot anticipate if such reviews will result in new tax assessments, which
would, should any arise, be appropriately disclosed and/or recognized in the financial statements. A summary of the beginning and ending balances of
unrecognized tax benefits for the years ended December 31, 2024, 2023 and 2022, excluding interest and penalties, is as follows:
2024
2023
2022
Balance of tax positions at beginning of the period
$
78
41
48
Additions for tax positions of prior periods
5
34
5
Additions for tax positions of current period
14
3
5
Reductions for tax positions related to prior periods and other items
(2)
(1)
(11)
Settlements and reclassifications
(31)
—
(4)
Expiration of the statute of limitations
(8)
(2)
(2)
Foreign currency translation effects
(5)
3
—
Balance of tax positions at end of the period
$
51
78
41
Tax examinations can involve complex issues, and the resolution of issues may span multiple years, particularly if subject to negotiation or litigation. Although
Cemex believes its estimates of the total unrecognized tax benefits are reasonable, uncertainties regarding the final determination of income tax audit
settlements and any related litigation could affect the amount of total unrecognized tax benefits in future periods. It is difficult to estimate the timing
and range of possible changes related to uncertain tax positions, as finalizing audits with the tax authorities may involve formal administrative and legal
proceedings. Accordingly, it is not possible to reasonably estimate the expected changes to the total unrecognized tax benefits over the next 12 months,
although any settlements or statute of limitations expirations may result in a significant increase or decrease in the total unrecognized tax benefits, including
those positions related to tax examinations being currently conducted.
Significant tax proceedings
As of December 31, 2024, the Company’s most significant tax proceedings are as follows:
• On August 9, 2024, in connection with the fines imposed by the tax authorities in Spain (the “Tax Authorities”) related to the years 2006 to 2009, the Tax
Authorities notified Cemex España, S.A. (“Cemex España”) of the final amount for a total of $473, initially payable no later than September 20, 2024.
On September 6, 2024, Cemex España paid an amount equivalent to $284 (60% of the fines). In connection with the remaining 40% of the fines for an
amount equivalent to $189, Cemex España filed before the National Court (Audiencia Nacional) a motion against the assessment issued by the Tax
Authorities, claiming a right to a reduction of the remaining 40% for early payment considered by the applicable tax code in Spain. Furthermore, as a
cautionary measure, on September 9, 2024, Cemex España filed an appeal with the Tribunal Económico Administrativo Central (“TEAC”) in connection
with the motion mentioned before. On September 10, 2024, Cemex España paid an additional amount of $3 and, if the process over the reduction of
the 40% is not resolved in Cemex’s favor, filed a request to the Tax Authorities for a postponement of payment and requested an authorization to pay the
outstanding amount of the fines in installments over four years starting in April 2025. Cemex has offered to the Tax Authorities, as guarantee to cover
such postponement, a surety insurance. As of December 31, 2024, the Tax Authorities have neither accepted nor denied such request. However, the
processes filed before the National Court and TEAC plus the request for the postponement, have suspended the execution of the outstanding amount of
the fines by the Tax Authorities.
• On March 26, 2021, the Tax Authorities notified Cemex España of an assessment for income taxes in an amount equivalent to $50 as of December 31,
2024, plus late interest, derived from a tax audit process covering the tax years 2010 to 2014. This assessment was appealed before the TEAC. For
the suspension of the payment of the tax assessment to be granted, Cemex España provided a payment guarantee which was approved by such tax
authorities. Moreover, on November 30, 2021, the Tax Authorities notified Cemex España of a penalty for an amount equivalent to $70, derived from
the tax audit process covering the same period from 2010 to 2014. This assessment was appealed before the TEAC. In December 2023, Cemex España
received a partial resolution from the TEAC. On February 26, 2024, Cemex España received the provisional assessment to pay a $60 including the
income tax due and the penalty. Cemex España paid the mentioned amount. As of December 31, 2024, this matter is finalized.
186
Cemex 2024 Integrated Report
Notes to the Consolidated
Financial Statements
Contents
Our Company
Our Strategy
Financial Performance
Environmental Excellence
Stakeholder Engagement
Governance
Appendix
Selected Consolidated Financial
Information
• Financial Information
Non-Financial Information
Scope and Boundaries of
This Report
Cemex’s Materiality Assessment
Stakeholder Engagement
Governance
EU Taxonomy
GRI Content Index
International Sustainability
Standards Board (ISSB)
Sustainability Accounting
Standards Board Response (SASB)
Task Force on Climate-related
Financial Disclosure Response
(TCFD)
Terms We Use
Cautionary Statement Regarding
Forward-Looking Statements
Investor, Contact and Feedback
Information
• In connection with the tax return for the year 2012, the Colombian Tax Authority (the “Colombian Tax Authority”) assessed an increase in the income tax
payable by Cemex Colombia S.A. (“Cemex Colombia”) and imposed an inaccuracy penalty for amounts in Colombian Pesos equivalent to $28 of income
tax and $28 of penalty. After several procedures and appeals, in 2021, Cemex Colombia filed an appeal in the Administrative Court of Cundinamarca.
If the proceeding is adversely resolved in the final stage, Cemex Colombia must pay the amounts determined in the official settlement plus interest
accrued on the amount of the income tax adjustment until the payment date. As of December 31, 2024, Cemex considers that an adverse resolution in
this proceeding after the conclusion of all available defense procedures is not probable, however, it is difficult to assess with certainty the likelihood of an
adverse result in the proceeding. If adversely resolved, Cemex believes this proceeding could have a material adverse impact on the operating results,
liquidity or financial position of Cemex.
• In connection with the tax return for the year 2011, the Colombian Tax Authority notified Cemex Colombia of a proceeding in which it rejected certain
deductions and determined an increase in the income tax payable and imposed a penalty for amounts in Colombian Pesos equivalent to $19 of income
tax and $19 of penalty. After several procedures and appeals, in 2020, the Colombian Tax Authority confirmed the claims of the official liquidation, and
this was then appealed in the Administrative Court of Cundinamarca. If the proceeding is adversely resolved in its final stage, Cemex Colombia would
have to pay the amounts determined in the official settlement plus interest accrued on the amount of the income tax adjustment until the date of payment.
As of December 31, 2024, Cemex considers that an adverse resolution in this proceeding after the conclusion of all available defense procedures is not
probable, however, it is difficult to assess with certainty the likelihood of an adverse result in the proceeding. If adversely resolved, Cemex believes this
proceeding could have a material adverse impact on the operating results, liquidity or financial position of Cemex.
21)
Stockholders’ Equity
The consolidated financial statements are presented in Dollars based on IAS 21, The Effects of Changes in Foreign Exchange Rates (“IAS 21”), while the
reporting currency of the Parent Company is the Peso. As a result, for the consolidated entity, transactions of common stock, additional paid-in capital
and retained earnings are translated and accrued using historical exchange rates of the dates on which the transactions occurred. As a result, although
the amounts of total non-controlling interest in the consolidated financial statements and total stockholders’ equity of the Parent Company are the same,
IAS 21 methodology results in differences between line-by-line items within Cemex’s total controlling interest and the Parent Company’s total stockholders’
equity. The official stockholders’ equity for statutory purposes is that of the Parent Company as expressed in Pesos. As of December 31, 2024, the line-
by-line reconciliation between Cemex’s controlling interest, as reported using the Dollar as presentation currency, and the Parent Company’s stockholders’
equity, using a convenience translation of the balances in Pesos translated using the exchange rate of 20.83 Pesos per Dollar as of December 31, 2024, is
as follows:
As of December 31, 2024
Consolidated
Parent Company
Common stock and additional paid-in capital 1
$
7,699
4,958
Other equity reserves 1, 2
(770)
3,149
Retained earnings 2
5,247
4,069
Total controlling interest
$
12,176
12,176
1
The difference relates to the method of accruing Dollars using the historical exchange rates to translate each common stock and additional paid-in capital transaction denominated in Pesos to Dollars. The
cumulative effect of these changes in exchange rates is recognized against other equity reserves.
2
The difference relates to the method of accruing Dollars using the exchange rates of each month during the period for statement of income purposes. The cumulative effect of these changes in exchange rates
is recognized against other equity reserves.
As of December 31, 2024 and 2023, stockholders’ equity excludes investments in CPOs of the Parent Company held by subsidiaries of $12 (20,541,277
CPOs) and $16 (20,541,277 CPOs), respectively, which were eliminated within “Other equity reserves.”
187
Cemex 2024 Integrated Report
Notes to the Consolidated
Financial Statements
Contents
Our Company
Our Strategy
Financial Performance
Environmental Excellence
Stakeholder Engagement
Governance
Appendix
Selected Consolidated Financial
Information
• Financial Information
Non-Financial Information
Scope and Boundaries of
This Report
Cemex’s Materiality Assessment
Stakeholder Engagement
Governance
EU Taxonomy
GRI Content Index
International Sustainability
Standards Board (ISSB)
Sustainability Accounting
Standards Board Response (SASB)
Task Force on Climate-related
Financial Disclosure Response
(TCFD)
Terms We Use
Cautionary Statement Regarding
Forward-Looking Statements
Investor, Contact and Feedback
Information
21.1)
Common Stock And Additional Paid-In Capital
As of December 31, 2024 and 2023, the breakdown of consolidated common stock and additional paid-in capital was as follows:
2024
2023
Common stock
$
318
318
Additional paid-in capital
7,381
7,381
$
7,699
7,699
As of December 31, 2024 and 2023, the common stock of Cemex, S.A.B. de C.V. was presented as follows:
2024
2023
Shares 1
Series A 2
Series B 2
Series A 2
Series B 2
Subscribed and paid shares
29,016,656,496
14,508,328,248
29,016,656,496
14,508,328,248
Unissued shares authorized for executives’ stock compensation programs
881,442,830
440,721,415
881,442,830
440,721,415
29,898,099,326
14,949,049,663
29,898,099,326
14,949,049,663
1
As of December 31, 2024 and 2023, 13,068,000,000 shares correspond to the fixed portion, and 31,779,148,989 shares correspond to the variable portion, respectively.
2
Series “A” or Mexican shares must represent at least 64% of Cemex, S.A.B. de C.V.’s capital stock; Series “B” or free subscription shares must represent at most 36% of Cemex, S.A.B. de C.V.’s capital stock.
On March 22, 2024 stockholders at the general ordinary shareholders’ meeting of Cemex, S.A.B. de C.V. approved: (a) the payment of a cash dividend for
a total of $120 in four equal quarterly installments beginning in June 2024 and finalizing in March 2025; (b) setting the amount of $500 or its equivalent
in Pesos as the maximum amount that during fiscal year 2024, and until the next ordinary general shareholders’ meeting of Cemex, S.A.B. de C.V. is held,
Cemex, S.A.B. de C.V. may use for the acquisition of its own shares or securities representing such shares; (c) the appointment of the members of the Board
of Directors, the Audit Committee, the Corporate Practices and Finance Committee and, the Sustainability, Climate Action, Social Impact and Diversity
Committee; and (d) the extension of share-based long-term compensation programs in shares of Cemex, S.A.B. de C.V.’s until December 31, 2028. During
2024, there were no purchases of own shares under the outstanding share repurchase program.
On March 23, 2023, stockholders at the general ordinary shareholders’ meeting of Cemex, S.A.B. de C.V. approved: (a) setting an amount of $500 or its
equivalent in Pesos, as the maximum amount of resources that during fiscal year 2023, and until the next general ordinary shareholders’ meeting is held
that Cemex, S.A.B. de C.V. may use for the acquisition of its own shares or securities representing such shares; (b) authorize the Parent Company’s Board
of Directors to determine the bases on which the acquisition and placement of said shares shall be instructed, designate the persons that shall make the
decisions to acquire or place them, appoint those responsible for carrying out the transaction and giving the corresponding notices to the authorities; and (c)
to decrease Cemex, S.A.B. de C.V.’s capital stock, in its variable part, through the cancellation of 662 million of own shares (22.1 million ADSs), which were
acquired through the share repurchase program in 2022. During 2023, there were no purchases of own shares under the outstanding share repurchase
program.
On March 24, 2022, stockholders at the general ordinary shareholders’ meeting of Cemex, S.A.B. de C.V. approved: (a) setting an amount of $500 or its
equivalent in Pesos as the maximum amount of resources through the year 2022 and until the next general ordinary shareholders’ meeting is held that Cemex,
S.A.B. de C.V. may use for the acquisition of its own shares or securities representing such shares; (b) authorize the Parent Company’s Board of Directors to
determine the bases on which the acquisition and placement of any such shares shall be instructed, designate the persons that shall make the decisions to
acquire or place them, appoint those responsible for carrying out the transaction and giving the corresponding notices to the authorities; and (c) designation of
the members of the Board of Directors, as well as members of the Audit, Corporate Practices and Finance, and Sustainability Committees. During 2022, 662
million own shares (22.1 million ADSs) were acquired under the outstanding share repurchase program for an amount of $111.
In 2024, 2023 and 2022, Cemex, S.A.B. de C.V. did not issue shares in connection with its executive share-based compensation programs (note 22).
188
Cemex 2024 Integrated Report
Notes to the Consolidated
Financial Statements
Contents
Our Company
Our Strategy
Financial Performance
Environmental Excellence
Stakeholder Engagement
Governance
Appendix
Selected Consolidated Financial
Information
• Financial Information
Non-Financial Information
Scope and Boundaries of
This Report
Cemex’s Materiality Assessment
Stakeholder Engagement
Governance
EU Taxonomy
GRI Content Index
International Sustainability
Standards Board (ISSB)
Sustainability Accounting
Standards Board Response (SASB)
Task Force on Climate-related
Financial Disclosure Response
(TCFD)
Terms We Use
Cautionary Statement Regarding
Forward-Looking Statements
Investor, Contact and Feedback
Information
21.2)
Other Equity Reserves and Subordinated Notes
As of December 31, 2024 and 2023, the caption of other equity reserves and subordinated notes was integrated as follows:
2024
2023
Other equity reserves
$
(2,756)
(2,349)
Subordinated notes
1,986
1,986
$
(770)
(363)
Other equity reserves
As of December 31, 2024 and 2023, other equity reserves are detailed as follows:
2024
2023
Cumulative translation effect, tax effects from deferred income taxes recognized directly in
equity (note 20.2) and derivative financial instruments designated as cash flow hedges
$
(1,066)
(672)
Cumulative actuarial losses
(324)
(398)
Cumulative coupon accrued under perpetual debentures
(1,070)
(1,070)
Cumulative coupon accrued under subordinated notes
(347)
(204)
Other effects
51
(5)
$
(2,756)
(2,349)
For the years ended December 31, 2024, 2023 and 2022, the translation effects of foreign subsidiaries included in the statements of comprehensive
income were as follows:
2024
2023
2022
Foreign currency translation results 1
$
(275)
356
(235)
Foreign exchange fluctuations from debt 2
68
(28)
(23)
Foreign exchange fluctuations from intercompany balances 3
1
(73)
(68)
$
(206)
255
(326)
1
These effects refer to the translation result of the financial statements of foreign subsidiaries and include the changes in the fair value of foreign exchange forward contracts designated as a hedge of a net
investment (note 17.4).
2
Generated by foreign exchange fluctuations over a notional amount of debt in Cemex, S.A.B. de C.V., identified and designated as a hedge of the net investment in foreign subsidiaries (note 29.3).
3
Refers to foreign exchange fluctuations arising from balances with related parties in foreign currencies that are of a long-term investment nature considering that their liquidation is not anticipated in the
foreseeable future and foreign exchange fluctuations over a notional amount of debt of a subsidiary of Cemex España identified and designated as a hedge of the net investment in foreign subsidiaries.
Subordinated notes
In March 2023, the Parent Company issued $1,000 of 9.125% subordinated notes (the “2023 Subordinated Notes”). After issuance costs, the Parent
Company received $992. The 2023 Subordinated Notes are aligned with the Green Financing Framework (the “GFF”) and the net proceeds obtained in the
issuance should be applied to finance, in whole or in part, one or more new or existing Eligible Green Projects (“EGPs”) under its GFF’s use-of-proceeds. EGPs
include those related to pollution prevention and control, renewable energy, energy efficiency, clean transportation, sustainable water and wastewater
management, and eco-efficient and/or circular economy adapted products, production technologies and processes.
In June 2021, the Parent Company issued $1,000 of 5.125% subordinated notes (the “2021 Subordinated Notes”). After issuance costs, the Parent Company
received $994. The net proceeds obtained were used to repurchase in full the balance then outstanding of perpetual debentures issued by subsidiaries and
the repayment of debt.
189
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Contents
Our Company
Our Strategy
Financial Performance
Environmental Excellence
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Appendix
Selected Consolidated Financial
Information
• Financial Information
Non-Financial Information
Scope and Boundaries of
This Report
Cemex’s Materiality Assessment
Stakeholder Engagement
Governance
EU Taxonomy
GRI Content Index
International Sustainability
Standards Board (ISSB)
Sustainability Accounting
Standards Board Response (SASB)
Task Force on Climate-related
Financial Disclosure Response
(TCFD)
Terms We Use
Cautionary Statement Regarding
Forward-Looking Statements
Investor, Contact and Feedback
Information
Under the 2023 Subordinated Notes and the 2021 Subordinated Notes (jointly the “Subordinated Notes”), which do not have a maturity or repayment date
or mandatory redemption date, interest may be deferred indefinitely at the sole discretion of the Parent Company. In addition, the Subordinated Notes: (i)
are not redeemable at the option of the holders of the Subordinated Notes (the “Noteholders”), (ii) do not have the benefit of standard debt covenants, and
(iii) do not include an event of default relating to a payment or covenant default with respect to any indebtedness of Cemex. Moreover, the Parent Company
is in control of the instances that may lead to the repayment of the Subordinated Notes, including Cemex’s repurchase option on the fifth anniversary of
each issuance, the specific redemption events as well as those under a reorganization or bankruptcy event under the applicable laws. In the hypothetical
event of liquidation of the Parent Company, the Noteholders would have a claim on any residual net assets available after all liabilities have been settled;
therefore, the Noteholders have no guarantee of collecting the principal amounts of the Subordinated Notes or any deferred accrued interest, if any.
Based on the above characteristics of the Subordinated Notes, included in contractual terms that are considered to be substantive, and legal considerations,
under IAS 32, Financial Instruments: Presentation (“IAS 32”), Cemex concluded that the Subordinated Notes do not meet the definition of financial liability
under IAS 32, and consequently are classified in controlling interest stockholders’ equity within Other equity reserves. The classification as equity of the
Subordinated Notes can be summarized as follows:
• As mentioned above, the Subordinated Notes do not meet the definition of financial liability considering that they include no contractual obligation: (i) to
deliver cash or another financial asset to another entity; or (ii) to exchange financial assets or financial liabilities with another entity under conditions that
are potentially unfavorable to the issuer. This is because:
• The Noteholders have agreed to the deferral of interest and principal, given that the Parent Company has the unilateral and unconditional right to
perpetually defer the payment of principal and interest;
• The Parent Company controls any payments to be made to the Noteholders, including in the event of bankruptcy under either the laws of Mexico (Ley
de Concursos Mercantiles) or U.S. bankruptcy laws (Chapter 11); and
• The Subordinated Notes contractually evidence a residual interest in the assets of the Parent Company after deducting all of its liabilities. The only
requirement to settle the Notes would be in liquidation, which is akin to an equity instrument under IAS 32.
Coupon payments on the Subordinated Notes were included in “Other equity reserves” and amounted to $143 in 2024, $120 in 2023 and $54 in 2022.
21.3)
Retained Earnings
The Parent Company’s net income for the year is subject to a 5% allocation toward a legal reserve until such reserve equals one-fifth of the common stock.
As of December 31, 2024, the legal reserve amounted to $87. During 2024, as mentioned in note 21.1, the Parent Company declared dividends of $120,
of which, as of December 31, 2024, the last quarterly payment of $30 remain payable.
21.4)
Non-Controlling Interest
Non-controlling interest
Non-controlling interest represents the share of non-controlling stockholders in the equity and results of consolidated subsidiaries. As of December 31, 2024
and 2023, non-controlling interest in equity amounted to $301 and $352, respectively. In 2024, 2023 and 2022, non-controlling interests in consolidated
net income were $21, $17 and $27, respectively. These non-controlling interests arise mainly from the following Cemex’s subsidiaries:
• TCL shares trade in the Trinidad and Tobago Stock Exchange. As of December 31, 2024 and 2023, there is a non-controlling interest in TCL of 30.17%
of its common shares (see note 4.3 for certain relevant condensed financial information).
• As of December 31, 2023, there was a non-controlling interest in CHP of 10.14% of its ordinary shares. CHP’s assets consisted primarily of Cemex’s
cement manufacturing assets in the Philippines. As mentioned in note 4.2, on December 2, 2024, Cemex sold all its operations and assets in the Philippines.
• Until June 2023, after the conclusion of a tender offer and delisting process, CLH, traded its ordinary shares on the Colombian Stock Exchange. CLH is
the indirect holding company of Cemex’s operations in Colombia, Panama and Nicaragua, until September 10, 2024 of the operations in Guatemala and,
until August 31, 2022 of the operations in Costa Rica and El Salvador. As of December 31, 2024 and 2023, there was a non-controlling interest in CLH of
0.16% and 0.50% of its ordinary shares, respectively.
190 Cemex 2024 Integrated Report
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Contents
Our Company
Our Strategy
Financial Performance
Environmental Excellence
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Appendix
Selected Consolidated Financial
Information
• Financial Information
Non-Financial Information
Scope and Boundaries of
This Report
Cemex’s Materiality Assessment
Stakeholder Engagement
Governance
EU Taxonomy
GRI Content Index
International Sustainability
Standards Board (ISSB)
Sustainability Accounting
Standards Board Response (SASB)
Task Force on Climate-related
Financial Disclosure Response
(TCFD)
Terms We Use
Cautionary Statement Regarding
Forward-Looking Statements
Investor, Contact and Feedback
Information
22)
Executive Share-Based Compensation
Stock-based awards granted to executives are defined as equity instruments, considering that the services received from employees are settled by delivering
shares. The cost of these equity instruments represents their estimated fair value at the grant date of each plan and is recognized in the statement of income
during the periods in which the executives render services and vest the exercise rights.
Cemex, S.A.B. de C.V. sponsors different long-term restricted share-based compensation programs for a wide range of executives. For eligible executives,
stock-based compensation represents a fixed percentage of such executive’s annual compensation (the “Stock Bonus”). This Stock Bonus was paid in the
Parent Company’s CPOs until December 31, 2023 and is paid in the Parent Company’s ADSs beginning January 1, 2024, considering certain management
improvements that do not affect employees, and which number is determined on the award date by reference to the Stock Bonus amount and the stock
market price of such award date (i.e., once the number of shares is determined, such number is fixed and will not change as a result of changes in the stock
market price).
Under our long-term share-based compensation programs, the Company sponsors a program oriented to our top management, which is subject to internal
and external performance metrics and rendering of services over a three-year period (the “Performance Plan”), and another program for key executives
and key performers, which is subject only to the passage of time and rendering of services over a four-year period (the “Ordinary Plan” together with
the Performance Plan, the “Share-Based Compensation Programs”). Shares awarded under the Ordinary Plan are initially restricted for sale and are
proportionately released to the executives as services are rendered at the end of each year at a 25% rate over a four-year period, to the extent they remain
in the Company at each settlement date. Once the executive is no longer employed by the Company, any shares awarded under the Ordinary Plan are
generally forfeited. The Performance Plan, depending on their weighted achievement, may result in a final payout at the end of the third year between 0%
and 200% of the target for each award. The fair value of the awards under the Performance Plan is determined by using an option pricing model.
For the years 2024, 2023 and 2022, the changes in connection with the Share-Based Compensation Programs were as follows:
ADSs equivalents delivered (thousands)
Plan
Target number
of ADSs
(thousands) 1
ADS price
at award’s
date 2
Fair value
(%)
Fair value
(millions)
2024
2023
2022
ADSs
Forfeited
(thousands)
ADSs
Outstanding
(thousands) 3
Performance Plans
2019
2,303.0
$4.4
130%
13.2
—
—
3,062.8
—
—
2020
4,146.0
$2.3
155%
14.8
—
8,448.2
—
—
—
2021
1,227.2
$8.0
150%
14.7
446.3
—
—
780.9
—
2022
2,403.6
$4.3
149%
15.4
—
—
—
—
3,571.7
2023
2,825.4
$6.4
145%
26.1
—
—
—
—
4,094.1
2024
1,976.7
$6.3
133%
16.6
—
—
—
—
2,621.5
Ordinary Plans
2019
8,048.2
$4.7
100%
37.5
—
42.4
1,521.4
118.3
—
2020
11,162.2
$2.5
100%
28.1
—
2,293.0
2,370.9
253.7
—
2021
5,716.6
$7.2
100%
41.3
1,210.7
1,442.7
1,465.6
56.6
4.2
2022
9,483.0
$4.9
100%
46.0
2,166.0
2,450.5
2,499.8
26.4
2,298.8
2023
6,531.9
$5.9
100%
38.4
1,582.9
1,765.0
—
48.0
3,136.0
2024
8,531.7
$7.2
100%
61.5
2,248.0
—
—
—
6,283.7
7,653.9
16,441.8
10,920.5
1,283.9
22,010.0
1
The target number of ADSs for the performance plans assume a 100% payout.
2
Average ADS price of the awards at the date of grant.
3
Until the final payout of the Performance Plans is known after the conclusion of the three-year period for each award, the number of ADSs outstanding assumes a payout considering the same percentage of
fair value determined by the option pricing model.
191
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Financial Performance
Environmental Excellence
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Appendix
Selected Consolidated Financial
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• Financial Information
Non-Financial Information
Scope and Boundaries of
This Report
Cemex’s Materiality Assessment
Stakeholder Engagement
Governance
EU Taxonomy
GRI Content Index
International Sustainability
Standards Board (ISSB)
Sustainability Accounting
Standards Board Response (SASB)
Task Force on Climate-related
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Investor, Contact and Feedback
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The combined compensation expense related to the Share-Based Compensation Programs described above as determined considering the fair value of
the awards at the date of grant in 2024, 2023 and 2022, was recognized in the operating results of each subsidiary where the executives render services
against other equity reserves and amounted to $55 in 2024, $61 in 2023 and $52 in 2022. The compensation expense determined at the date of grant is
not reversed when the final payout of the performance programs is lower than the estimated fair value. The required Parent Company’s ADSs delivered to
the executives to meet the Company’s awards are either newly issued or purchased, at the Company’s election. For these purposes, from time to time, an
external trust in which the executives are beneficiaries, may receive funding from Cemex to incur these purchases. When the Parent Company funds the
executives’ trust, it recognizes a decrease in other equity reserves against cash. As of December 31, 2024, there were no options or commitments to make
payments in cash to the executives based on changes in the market price of the Parent Company’s ADSs.
23)
Earnings Per Share
Basic earnings per share is calculated by dividing net income attributable to ordinary equity holders of the Parent Company (the numerator) by the weighted
average number of shares outstanding (the denominator) during the period. Shares that would be issued depending only on the passage of time should be
included in the determination of the basic weighted average number of shares outstanding. Diluted earnings per share should reflect in both the numerator
and denominator the assumption that convertible instruments are converted, that options or warrants are exercised, or that ordinary shares are issued
upon the satisfaction of specified conditions, to the extent that such assumption would lead to a reduction in basic earnings per share or an increase in basic
loss per share. Otherwise, the effects of potential shares are not considered because they generate anti-dilution.
The amounts considered for calculations of earnings per share in 2024, 2023 and 2022 were as follows:
2024
2023
2022
Denominator (thousands of shares)
Weighted-average number of shares outstanding – basic
43,405,354
43,510,758
43,554,921
Effect of dilutive instruments – share-based compensation (note 22) 1
660,298
599,229
793,322
Weighted-average number of shares – diluted
44,065,652
44,109,987
44,348,243
Numerator
Net income from continuing operations
$
913
119
402
Less: non-controlling interest net income
21
17
27
Controlling interest net income from continuing operations
$
892
102
375
Net income from discontinued operations
$
47
80
483
Basic earnings per share
Controlling interest basic earnings per share
$
0.0217
0.0042
0.0197
Controlling interest basic earnings per share from continuing operations
0.0206
0.0023
0.0086
Controlling interest basic earnings per share from discontinued operations
0.0011
0.0018
0.0111
Controlling interest diluted earnings per share
Controlling interest diluted earnings per share
$
0.0213
0.0041
0.0193
Controlling interest diluted earnings per share from continuing operations
0.0202
0.0023
0.0085
Controlling interest diluted earnings per share from discontinued operations
0.0011
0.0018
0.0109
1
Number of the Parent Company’s shares to be potentially issued under the Share-Based Compensation Programs, equivalent to 220.1 million CPOs or 22.01 million ADSs.
192
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Our Strategy
Financial Performance
Environmental Excellence
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Appendix
Selected Consolidated Financial
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• Financial Information
Non-Financial Information
Scope and Boundaries of
This Report
Cemex’s Materiality Assessment
Stakeholder Engagement
Governance
EU Taxonomy
GRI Content Index
International Sustainability
Standards Board (ISSB)
Sustainability Accounting
Standards Board Response (SASB)
Task Force on Climate-related
Financial Disclosure Response
(TCFD)
Terms We Use
Cautionary Statement Regarding
Forward-Looking Statements
Investor, Contact and Feedback
Information
24)
Commitments
24.1)
Contractual Obligations
As of December 31, 2024, Cemex had the following contractual obligations:
2024
Obligations
Less than
1 year
1-3 years
3-5 years
More than
5 years
Total
Long-term debt
$
189
1,551
1,552
2,267
5,559
Leases 1
320
398
255
542
1,515
Total debt and other financial obligations 2
509
1,949
1,807
2,809
7,074
Interest payments on debt 3
262
510
359
387
1,518
Pension plans and other benefits 4
156
268
266
670
1,360
Acquisition of property, plant and equipment
293
174
2
—
469
Purchases of services, raw materials, fuel and energy 5
506
793
406
513
2,218
Total contractual obligations
$
1,726
3,694
2,840
4,379
12,639
1
Represent nominal cash flows. As of December 31, 2024, the NPV of future payments under the Company’s lease contracts was $1,171, of which, $352 refers to payments from 1 to 3 years and $209 refers to
payments from 3 to 5 years.
2
The schedule of debt payments, which includes current maturities, does not consider the effect of any refinancing of debt that may occur during the following years. In the past, Cemex has replaced its long-term
obligations for others of a similar nature.
3
Estimated cash flows on floating rate denominated debt were determined using the floating interest rates in effect as of December 31, 2024.
4
Represents estimated annual payments under these benefits for the next ten years (note 19), including the estimate of new retirees during such future years.
5
Future payments for the purchase of raw materials are presented based on contractual nominal cash flows. Future nominal payments for energy were estimated for all contractual commitments based on an
aggregate average expected consumption per year using the future prices of energy established in the contracts for each period. Future payments also include Cemex’s commitments for the purchase of fuel,
carbon allowances and other services.
As of December 31, 2024 and 2023, from the contractual obligations summarized in the table above, the description of the most significant contracts is as
follows:
• In March 2024, with the intention of hedging a significant portion of Cemex’s expected deficit of emission carbon allowances (“EUAs”) under the European
Union’s emissions trading system (“EU ETS”) (note 29.13), Cemex entered into physically-settled forward purchase commitments for own use in 2029 and
2030 for the acquisition of 1.8 million EUAs for an aggregate price of $157.
• In October 2022, Cemex entered into a five-year agreement with Neoris beginning in 2023 for the acquisition of Information Technology (“IT”) solutions
and services for an annual amount of at least $55.
• In February 2022, Cemex renewed or entered into new agreements with six service providers in the fields of data processing services (back office) in
finance, accounting and human resources; as well as IT infrastructure services, support and maintenance of IT applications in the countries in which
Cemex operates, for a tenure of five to seven years at an average annual cost of $60. These contracts replaced the agreements Cemex maintained with
IBM, which expired on August 31, 2022.
• Beginning in 2016, in connection with the Ventika S.A.P.I. de C.V. and the Ventika II S.A.P.I. de C.V. wind farms (jointly “Ventikas”) located in the Mexican
state of Nuevo Leon with a combined generation capacity of 252 Megawatts (“MW”), Cemex agreed to acquire a portion of the energy generated by
Ventikas for its overall electricity needs in Mexico for a period of 20 years. The estimated annual cost of this agreement is $24 if Cemex receives all
its energy allocation. Nonetheless, energy supply from wind is variable in nature and final amounts are determined considering the final MW per hour
(“MWh”) effectively received at the agreed prices per unit.
• Beginning in 2010, for its overall electricity needs in Mexico, Cemex agreed with EURUS to purchase a portion of the electric energy generated for no
less than 20 years. EURUS is a wind farm with an installed capacity of 250 MW operated by ACCIONA in the Mexican state of Oaxaca. The estimated
annual cost of this agreement is $77 if Cemex receives all its energy allocation. Nonetheless, energy supply from wind sources is variable in nature and
final amounts will be determined considering the final MWh effectively received at the agreed prices per unit.
193
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Our Strategy
Financial Performance
Environmental Excellence
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Appendix
Selected Consolidated Financial
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• Financial Information
Non-Financial Information
Scope and Boundaries of
This Report
Cemex’s Materiality Assessment
Stakeholder Engagement
Governance
EU Taxonomy
GRI Content Index
International Sustainability
Standards Board (ISSB)
Sustainability Accounting
Standards Board Response (SASB)
Task Force on Climate-related
Financial Disclosure Response
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Cautionary Statement Regarding
Forward-Looking Statements
Investor, Contact and Feedback
Information
• Cemex maintains a commitment initiated in April 2004 to purchase the energy generated by Termoeléctrica del Golfo (“TEG”) until 2027 for its overall
electricity needs in Mexico. The estimated annual cost of this agreement is $87 if Cemex receives all its energy allocation. Nonetheless, final amounts will
be determined considering the final MWh effectively received at the agreed prices per unit.
• In regard to the above, Cemex also committed to supply TEG and another third-party electrical energy generating plant adjacent to TEG with all fuel
necessary for their operations until the year 2027, equivalent to 1.2 million tons of petroleum coke per year. Cemex covers its commitments under this
agreement acquiring the volume of fuel from sources in the international markets and Mexico.
• On October 24, 2018, Cemex, S.A.B. de C.V. entered into an energy financial hedge agreement in Mexico, commencing October 1, 2019 and for a period
of 20 years. Through the contract, the Company fixed the MWh cost over an electric energy volume of 400 thousand MWh per year, through the payment
of 25.375 Dollars per MWh of electric power in exchange for a market price. The committed price to pay will increase by 1.5% annually. The differential
between the agreed price and the market price is settled monthly. Cemex considers this agreement as a hedge for a portion of its aggregate consumption
of electric energy in Mexico and recognizes the result of the exchange of price differentials described previously in the statements of income as a part of
the costs of energy. As a result of this contract, during 2024, 2023 and 2022, the Company received net proceeds of $5, $3 and $3, respectively. Cemex
does not recognize this agreement at fair value since there is no deep market for electric power in Mexico that would effectively allow for its valuation.
24.2) Commitments from Employee Benefits
In some countries, Cemex has self-insured health care benefits plans for its active employees, which are managed on cost-plus fee arrangements with major
insurance companies or provided through health maintenance organizations. As of December 31, 2024, in particular plans, Cemex has established stop-
loss limits for continued medical assistance derived from a specific cause (e.g., an automobile accident, illness, etc.) ranging for a total limit of 550 thousand
Dollars. In other plans, Cemex has established stop-loss limits per employee regardless of the number of events for a total cost of 2.5 million Dollars. The
contingency for Cemex if all employees qualifying for health care benefits required medical services simultaneously is significant. However, Cemex believes
this scenario is remote. The amount expensed through self-insured health care benefits was $72 in 2024, $72 in 2023 and $64 in 2022.
24.3) Climate Change and Commitments for the Reduction of Carbon Dioxide (“CO2”) Emissions (Unaudited)
The cement industry releases CO2 as part of the production process, mainly during the calcination of limestone, as well as CO2 released through the use
of fossil fuels in the kilns. Currently, it is estimated that the whole cement industry releases between 5% to 8% of global CO2 emissions per year. In Cemex,
from an estimate of close to 50 million tons of gross CO2 emissions per year (excluding discontinued operations), 63% are directly related to the production
process (Scope 1), 6% are indirect emissions from electricity consumption (Scope 2) and the remaining 31% arise from activities related to the rest of the
supply chain which includes supply and transportation (Scope 3).
Cemex has an agenda of medium-term and long-term initiatives aiming at significantly reducing its CO2 emissions in order to align the Company’s efforts
with the Paris Agreement objectives of limiting global warming to 1.5ºC above pre-industrial levels. Cemex has defined its medium-term and long-term
targets, which are mainly: 1) 31% reduction in CO2 emissions by 2030, compared to its 2020 baseline in Scope 1 emissions (a 47% reduction compared to
its 1990 baseline); 2) achieve a 58% reduction in Scope 2 emissions by 2030 compared to a 2020 baseline; 3) achieve reductions by 2030 compared to a
2020 baseline, of 25% in CO2 emissions per ton of purchased clinker and cement, 30% in transport emissions, 40% of Scope 3 emissions per ton of purchased
fuels and 42% in absolute Scope 3 emissions from the use of traded fuels; and 4) reach net zero CO2 emissions across the Company by 2050. Cemex’s 2030
targets for its cement business were verified by the Science Based Targets initiative (“SBTi”) to be in line with the 1.5ºC scenario. Also, Cemex’s 2050 net-
zero roadmap was validated by SBTi. SBTi, the foremost entity on science-based climate action goals, drives ambitious climate action in the private sector
by enabling companies to set science-based emissions reduction targets.
To meet Cemex’s 2030 targets, the objectives have an impact that ranges from -10% to +10% in the total cash payout of the annual executive variable
compensation of the Chief Executive Officer, the top senior management, and more than 4,500 employees, eligible for executive variable compensation.
Moreover, Cemex has detailed yearly CO2 roadmaps developed for each cement plant which include, among other factors: a) the increasing use of
alternative fuels and electricity from clean sources as well as combustion enhancers such as hydrogen, b) the increasing use of decarbonated or lower
carbon raw materials and cementitious materials to reduce the clinker factor, as well as c) a roll-out of other proven CO2 reduction technologies and the
investments required for their implementation.
Furthermore, to achieve the net-zero CO2 emissions target globally by 2050, Cemex is working through an open innovation platform in which it partners and
collaborates with start-ups, universities, other industry players and entities from other industries along with the capabilities of Cemex’s Global Research and
Development, Cemex Ventures, the corporate venture capital and open innovation unit of Cemex, and the internal “Smart Innovation” process, Cemex is
developing a robust research and development portfolio of projects aimed at identifying the most promising technologies to capture, store and utilize CO2.
194
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Notes to the Consolidated
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Contents
Our Company
Our Strategy
Financial Performance
Environmental Excellence
Stakeholder Engagement
Governance
Appendix
Selected Consolidated Financial
Information
• Financial Information
Non-Financial Information
Scope and Boundaries of
This Report
Cemex’s Materiality Assessment
Stakeholder Engagement
Governance
EU Taxonomy
GRI Content Index
International Sustainability
Standards Board (ISSB)
Sustainability Accounting
Standards Board Response (SASB)
Task Force on Climate-related
Financial Disclosure Response
(TCFD)
Terms We Use
Cautionary Statement Regarding
Forward-Looking Statements
Investor, Contact and Feedback
Information
These technologies should contribute beyond 2030 to fully decarbonize Cemex’s operations. To build this portfolio, Cemex is tapping into and expects to
continue to tap government funding in Europe and the United States, where there are well established programs to foster innovation in the green technologies
of the future. Cemex continues to pursue its strategy in the different markets where it operates.
As of the reporting date, there are no internal plans or commitments with local authorities to shut down operating assets due to climate change issues or
concerns. For the years ended December 31, 2024, 2023 and 2022, the Company’s other expenses, net, in the statement of income, include expenses and
losses associated with severe weather conditions of $9, $3 and $1, respectively, mainly related with hurricanes in Mexico and the United States in 2024,
winter storms in the United States in 2023 and hurricane Ian in 2022. As of December 31, 2024, Cemex does not expect additional investments, expenses,
or losses in connection with these events of nature.
25)
Legal Proceedings
25.1)
Provisions Resulting From Legal Proceedings
Cemex is involved in various significant legal proceedings, which adverse resolutions are deemed probable. As a result, certain provisions and/or losses have
been recognized in the financial statements, representing the best estimate of foreseeable cash outflows. As of December 31, 2024, the details of the most
significant cases are as follows:
• As of December 31, 2024, Cemex has environmental remediation liabilities in the United Kingdom pertaining to closed and current landfill sites for the
confinement of waste, representing the NPV of the obligations for an amount in Pounds sterling equivalent to $178. Expenditure, including monitoring,
installation, repair and renewal of environmental infrastructure, was assessed and quantified over a period up to 60 years from the date of closure, in
which the sites have the potential to cause environmental harm.
• As of December 31, 2024, Cemex has environmental remediation liabilities in the United States for $37, related to: a) the disposal of various materials
in accordance with past industry practice, which might currently be categorized as hazardous substances or wastes; and b) the cleanup of sites used or
operated by Cemex, including discontinued operations, regarding the disposal of hazardous substances or waste, either individually or jointly with other
parties. Cemex does not believe that expenditure on these matters would exceed the amounts recorded. The ultimate cost that may be incurred to resolve
these environmental issues cannot be assured until all environmental studies, investigations, remediation work and negotiations with, or litigation against,
potential sources of recovery have been completed.
25.2) Contingencies From Legal Proceedings
Cemex is involved in various legal proceedings, which have not required the recognition of accruals, considering that the probability of loss is less than
probable. Nonetheless, until all stages in the procedures are exhausted in each proceeding, Cemex cannot assure the achievement of a final favorable
resolution.
As of December 31, 2024, the most significant contingencies with a quantification of the potential loss, when it is determinable and would not impair the
outcome of the relevant proceeding, were as follows:
• The European Commission has inspected Cemex’s offices in France and requested certain information relating to the business in France in the construction
chemicals sector, which includes chemical admixtures and additives for use in concrete, cement and related construction products. Cemex is fully
cooperating with the authorities conducting this investigation. The fact that this investigation is being conducted does not mean that the European
Commission has concluded that Cemex has violated the law. As of December 31, 2024, due to the current stages of this investigation, Cemex is not able
to assess the likely outcome of the investigation as it relates to us or whether it would have a material adverse impact on our results of operations, liquidity
and financial condition.
• Cemex’s operations in the United States received a grand jury subpoena issued by the Department of Justice (the “DOJ”) in connection with an investigation
of possible antitrust law violations in the cement additives and concrete admixtures sector. Cemex is fully cooperating with the authorities conducting
this investigation. The fact that this investigation is being conducted does not mean that the DOJ has concluded that Cemex has violated the law. As of
December 31, 2024, due to the current stage of this investigation, we are not able to assess the likely outcome of the investigation as it relates to us or
whether it would have a material adverse impact on our results of operations, liquidity and financial condition.
195
Cemex 2024 Integrated Report
Notes to the Consolidated
Financial Statements
Contents
Our Company
Our Strategy
Financial Performance
Environmental Excellence
Stakeholder Engagement
Governance
Appendix
Selected Consolidated Financial
Information
• Financial Information
Non-Financial Information
Scope and Boundaries of
This Report
Cemex’s Materiality Assessment
Stakeholder Engagement
Governance
EU Taxonomy
GRI Content Index
International Sustainability
Standards Board (ISSB)
Sustainability Accounting
Standards Board Response (SASB)
Task Force on Climate-related
Financial Disclosure Response
(TCFD)
Terms We Use
Cautionary Statement Regarding
Forward-Looking Statements
Investor, Contact and Feedback
Information
• In December 2016, the Parent Company received subpoenas from the SEC seeking information to determine whether there have been any violations
of the U.S. Foreign Corrupt Practices Act stemming from the Maceo Project. These subpoenas do not mean that the SEC has concluded that the Parent
Company or any of its affiliates violated the law. On March 12, 2018, the DOJ issued a grand jury subpoena to the Parent Company relating to its
operations in Colombia and other jurisdictions. In 2020, the Company delivered all of the information and documentation that had been requested
and has not received any more requests since then. The Parent Company intends to continue to cooperate fully with the SEC, the DOJ and any other
investigative entity. As of December 31, 2024, the Parent Company is unable to predict the duration, scope, or outcome of either the SEC investigation
or the DOJ investigation, or any other investigation that may arise, or the potential sanctions which could be borne by the Parent Company, or if such
sanctions, if any, would have a material adverse impact on Cemex results of operations, liquidity or financial position.
In addition to the legal proceedings described above in notes 25.1 and 25.2, as of December 31, 2024, Cemex is involved in various legal proceedings of lesser
impact that have arisen in the ordinary course of business. These proceedings involve: 1) product warranty claims; 2) claims for environmental damages;
3) indemnification claims relating to acquisitions or divestitures; 4) claims to revoke permits and/or concessions; and 5) other diverse civil, administrative,
commercial and lawless actions. Cemex considers that in those instances in which obligations have been incurred, Cemex has accrued adequate provisions to
cover the related risks. Cemex believes these matters will be resolved without any significant effect on its business, financial position or results of operations.
In addition, in relation to certain ongoing legal proceedings, Cemex is sometimes able to make and disclose reasonable estimates of the expected loss or
range of possible loss, as well as disclose any provision accrued for such loss, but for a limited number of ongoing legal proceedings, Cemex may not be able
to make a reasonable estimate of the expected loss or range of possible loss or may be able to do so but believes that disclosure of such information on a
case-by-case basis would seriously prejudice Cemex’s position in the ongoing legal proceedings or any related settlement discussions. Accordingly, in these
cases, Cemex has disclosed qualitative information with respect to the nature and characteristics of the contingency but has not disclosed the estimate of
the range of potential loss.
25.3) Other Significant Processes
In connection with the Maceo Plant, as described in note 15.1, as of December 31, 2024, the Maceo Plant has not initiated commercial operations. The
evolution and status of the main issues related to the Maceo Plant are described as follows:
• As of December 31, 2024, part of Cemex’s investments in the Maceo Plant, including the land, the mining concession, the environmental license and the
shares of Zona Franca Especial Cementera del Magdalena Medio S.A.S. (“Zomam”) (holder of the free trade zone concession), acquired in 2012 from CI
Calizas y Minerales S.A. (“CI Calizas”) and part of the plant’s own assets (28%), are under a process of forfeiture of ownership that was linked to a former
shareholder of CI Calizas by the Attorney General’s Office of the Colombian Nation (the “Attorney General”). The rest of the plant’s assets (72%) belongs
to Cemex Colombia. As a consequence of the process of forfeiture of ownership, Cemex Colombia (i) does not have the Zomam’s legal representation,
(ii) is not the legitimate owner of the land on which the Maceo Plant was built, and (iii) is not the assigned beneficiary of the mining concession or the
permits associated with the project. Additionally, Cemex Colombia’s ownership of the Zomam shares and of Zomam’s assets are subject to several legal
proceedings.
• In relation with the property of Zomam’s assets and its shares, on December 2020, Cemex Colombia filed a lawsuit before the Business Superintendency
of Colombia, seeking the invalidity and, alternatively, the annulment of the equity contribution in-kind carried out by Cemex Colombia to Zomam in
December 2015, by means of which a portion of the Maceo Plant’s assets were contributed to such entity. As of December 31, 2024, the first and
the second instance rulings, clearly stated that the capitalization made by Cemex Colombia was legal and complied with applicable laws. Against the
decision, Cemex filed an extraordinary appeal, which is yet to be resolved by the Colombian Supreme Court of Justice. Additionally, on March 12, 2024,
Corporación Cementera Latinoamericana S.L.U. (“CCL”), a Cemex indirect subsidiary, filed a lawsuit against Zomam, to recover $32.6 plus interest, owed
by Zomam to CCL. Currently, the proceeding it’s on the initial stage and a first instance decision is yet to be obtained.
• As to the forfeiture of ownership proceeding mentioned above, in April 2019, Cemex Colombia and one of its subsidiaries reached a conciliatory
agreement with the Sociedad de Activos Especiales, S.A.S. (the “SAE”) and CI Calizas before the Attorney General’s Office and as a consequence, signed
a contract of Mining Operation, Manufacturing and Delivery Services and Leasing of Properties for Cement Production (the “Operation Contract”), which
allows Cemex Colombia to continue using the assets for an initial term of 21 years that can be extended for ten additional years under certain conditions.
Under the Operation Contract, once the Maceo Plant begins commercial operations, Cemex Colombia and/or a subsidiary will pay on a quarterly basis:
a) 0.9% of the net sales resulting from the cement produced in the plant as compensation to CI Calizas for the right of Cemex Colombia to extract and use
the mineral reserves; and b) 0.8% of the net sales resulting from the cement produced in the plant as payment to Zomam for cement manufacturing and
delivery services, as long as Zomam maintains the free trade zone benefit, or, 0.3% in case that Zomam losses such benefit. The Operation Contract will
continue in force regardless of the result of the forfeiture of ownership process.
196
Cemex 2024 Integrated Report
Notes to the Consolidated
Financial Statements
Contents
Our Company
Our Strategy
Financial Performance
Environmental Excellence
Stakeholder Engagement
Governance
Appendix
Selected Consolidated Financial
Information
• Financial Information
Non-Financial Information
Scope and Boundaries of
This Report
Cemex’s Materiality Assessment
Stakeholder Engagement
Governance
EU Taxonomy
GRI Content Index
International Sustainability
Standards Board (ISSB)
Sustainability Accounting
Standards Board Response (SASB)
Task Force on Climate-related
Financial Disclosure Response
(TCFD)
Terms We Use
Cautionary Statement Regarding
Forward-Looking Statements
Investor, Contact and Feedback
Information
• As of December 31, 2024, Cemex believes that it would be able to keep ownership of the Maceo Plant. Nevertheless, if the forfeiture of ownership
proceeding over the assets is ordered in favor of the Colombian State, and if the assets were adjudicated to a third party in a public tender offer, by virtue
of and early disposal proceeding, such third party would have to subrogate to the Operation Contract. As of December 31, 2024, Cemex is not able to
estimate the results of such proceedings.
• In October 2021, CI Calizas, as holder of the environmental license, began the procedures before the National Environmental License Authority (“ANLA”)
to expand the environmental extraction license to 1.3 million metric tons of minerals (clay and limestone) annually from the Maceo Plant quarry without
the need to bring minerals from other locations. On November 15, 2024, the ANLA archived CI Calizas’ application, this decision was appealed by
CI Calizas. The ruling temporarily limits the mine’s material extraction capacity to 990 thousand tons of minerals (clay and limestone) and the plant’s
production to 1.5 million metric tons of cement per year. This decision does not have a material adverse impact on the operations of the Maceo Plant. CI
Calizas still has the right to file again the application to expand the environmental extraction license.
• With this decision, most of the relevant permits of the Maceo Plant have been obtained, and thus, as of December 31, 2024, it is expected that the
access road will be substantially completed in 2025 as well as the commissioning of the Maceo Plant. The Maceo Plant can begin operations adjusting its
productions to the limits established by the corresponding permits and licenses without the conclusion of the access road.
26)
Related Parties
All significant balances and transactions between the entities that constitute Cemex have been eliminated in the preparation of the consolidated financial
statements. These balances with related parties resulted primarily from: (i) the sale and purchase of goods between group entities; (ii) the sale and/or
acquisition of subsidiaries’ shares within Cemex; (iii) the invoicing of administrative services, rentals, trademarks and commercial name rights, royalties
and other services rendered between group entities; and (iv) loans between related parties. When market prices and/or market conditions are not readily
available, Cemex conducts transfer pricing studies in the countries in which it operates to comply with regulations applicable to transactions between
related parties.
The definition of related parties includes entities or individuals outside Cemex, who may take advantage of being in a privileged situation due to their
relationship with Cemex. Likewise, this applies to cases where Cemex may take advantage of such relationships and benefit from its financial position or
operating results.
For the years ended December 31, 2024, 2023 and 2022, in the ordinary course of business, Cemex enters into transactions with related parties for the
sale and/or purchase of products, the sale and/or purchase of services or the lease of assets, all of which are not significant for Cemex and, except for the
transaction mentioned below, to the best of Cemex’s knowledge, are not significant to the related party, are incurred for non-significant amounts for Cemex
and are executed under conditions following the same authorizations applied to other third parties. These identified transactions, which involved members
of the Parent Company’s Board of Directors, members of Cemex’s Executive Committee and other members of senior management, as applicable, are
reviewed by the Parent Company’s Board of Directors Corporate Practices and Finance Committee and approved or ratified at least annually by the
Parent Company’s Board of Directors, as per Cemex’s applicable policies on conflicts of interest and related person transactions. These transactions with
related parties also include transactions with subsidiaries with significant non-controlling interests, such as TCL and Caribbean Cement Company Limited;
with other companies in which Cemex has a non-controlling position, such as GCC and Lehigh White Cement Company; with companies in which the Parent
Company’s Board of Director members are members of such company’s board of directors, like Banco Santander de Negocios de México, S.A. de C.V. and
affiliates, Grupo ICA, S.A. de C.V. and affiliates, FEMSA, S.A.B. de C.V., Carza, S.A.P.I. de C.V. and related companies, Nemak, S.A.B. de C.V., NEG Natural,
S.A. de C.V., Banco Mercantil del Norte, S.A. and affiliates, BBVA México S.A. and affiliates, Neoris N.V.; and with companies at which members of Cemex’s
Executive Committee have family members such as Cementos Españoles de Bombeo, S. de R.L. (“CEB”), HSBC México, S.A. and affiliates and the firm
Mckinsey & Company Inc. México, S.C. and affiliates, among others.
For Cemex, except as set forth below, none of these transactions executed in 2024 are material to be disclosed separately. In addition, during the same
periods, no member of Cemex, S.A.B. de C.V.’s senior management or Board of Directors had any outstanding loans with Cemex.
The most important transaction with related parties during 2024 included in Cemex’s financial statements was as follows:
• For the year 2024, Cemex incurred services from CEB, a provider of ready-mix pumping services to Cemex’s customers in Mexico for $70.
For the years 2024, 2023 and 2022, the aggregate compensation paid to members of Cemex, S.A.B. de C.V.’ Board of Directors, including alternate
directors, and Cemex’s senior management was $48, $71 and $44, respectively. Of these amounts, $31 in 2024, $24 in 2023, $29 in 2022, were paid as
base compensation plus performance bonuses, including pension and post-employment benefits. In addition, $17 in 2024, $47 in 2023 and $15 in 2022 of
the aggregate amounts in each year, corresponded to allocations of ADSs under Cemex’s executive share-based compensation programs.
197
Cemex 2024 Integrated Report
Notes to the Consolidated
Financial Statements
Contents
Our Company
Our Strategy
Financial Performance
Environmental Excellence
Stakeholder Engagement
Governance
Appendix
Selected Consolidated Financial
Information
• Financial Information
Non-Financial Information
Scope and Boundaries of
This Report
Cemex’s Materiality Assessment
Stakeholder Engagement
Governance
EU Taxonomy
GRI Content Index
International Sustainability
Standards Board (ISSB)
Sustainability Accounting
Standards Board Response (SASB)
Task Force on Climate-related
Financial Disclosure Response
(TCFD)
Terms We Use
Cautionary Statement Regarding
Forward-Looking Statements
Investor, Contact and Feedback
Information
27)
Principal Subsidiaries
As mentioned in notes 4.3 and 21.4, as of December 31, 2024 and 2023, there are non-controlling interests in certain consolidated entities that are in turn
holding companies of relevant operations. The principal subsidiaries as of December 31, 2024 and 2023, which ownership interest is presented according
to the interest maintained by Cemex, were as follows:
% Interest
Subsidiary
Country
2024
2023
Cemex España, S.A. 1
Spain
99.9
99.9
Cemex, Inc.
United States of America
100.0
100.0
Cemex Nicaragua, S.A. 2
Nicaragua
100.0
100.0
Assiut Cement Company
Egypt
95.8
95.8
Cemex Colombia, S.A. 3
Colombia
99.7
99.7
Cemento Bayano, S.A. 4
Panama
99.5
99.5
Cemex Dominicana, S.A. 5
Dominican Republic
100.0
100.0
Trinidad Cement Limited
Trinidad and Tobago
69.8
69.8
Caribbean Cement Company Limited 6
Jamaica
79.0
79.0
Cemex de Puerto Rico Inc.
Puerto Rico
100.0
100.0
Cemex France (formerly Cemex France Gestion (S.A.S.))
France
100.0
100.0
Cemex Holdings Philippines, Inc.
Philippines
—
89.9
Solid Cement Corporation
Philippines
—
100.0
APO Cement Corporation
Philippines
—
100.0
Cemex UK
United Kingdom
100.0
100.0
Cemex Deutschland, AG.
Germany
100.0
100.0
Cemex Czech Republic, s.r.o.
Czech Republic
100.0
100.0
Cemex Polska sp. Z.o.o.
Poland
100.0
100.0
Cemex Holdings (Israel) Ltd.
Israel
100.0
100.0
Cemex Topmix LLC, Cemex Supermix LLC and Cemex Falcon LLC 7
United Arab Emirates
100.0
100.0
Cemex International Trading LLC 8
United States of America
100.0
100.0
Sunbulk Shipping, S.L.U. 9
Spain
100.0
100.0
1
Cemex España is the direct or indirect holding company of most of Cemex’s international operations.
2
Represents Cemex Colombia’s 99% interest and CLH’s 1% interest held indirectly through another subsidiary of CLH.
3
Represents CLH’s direct and indirect interest in ordinary and preferred shares, including own shares held in Cemex Colombia’s treasury.
4
Represents CLH’s 99.483% indirect interest in ordinary shares, which excludes a 0.516% interest held in Cemento Bayano, S.A.’s treasury.
5
See subsequent event related to this subsidiary in note 28.
6
Represents the aggregate ownership interest of Cemex in this entity of 79.04%, which includes TCL’s 74.08% direct and indirect interest and Cemex’s 4.96% indirect interest held through other subsidiaries.
7
Cemex España indirectly owns a 49% equity interest in each of these entities and indirectly holds the remaining 51% of the economic benefits, through agreements with other shareholders.
8
Cemex International Trading LLC participates in the international trading of Cemex’s products and fuel commercialization.
9
Sunbulk Shipping, S.L.U. is involved mainly in maritime and land transportation and/or shipping of goods worldwide and the handling, administration, and hiring of shipments and cargo at ports, terminals and
other loading and unloading destinations worldwide, as well as the offering and contracting of services in relation thereto for Cemex’s trading entities and operations.
28)
Subsequent Event
On January 30, 2025, Cemex completed the sale of its operations in the Dominican Republic (note 4.2), considering a business valuation of $950 subject to
final adjustments for changing balances of cash, debt and working capital.
198
Cemex 2024 Integrated Report
Notes to the Consolidated
Financial Statements
Contents
Our Company
Our Strategy
Financial Performance
Environmental Excellence
Stakeholder Engagement
Governance
Appendix
Selected Consolidated Financial
Information
• Financial Information
Non-Financial Information
Scope and Boundaries of
This Report
Cemex’s Materiality Assessment
Stakeholder Engagement
Governance
EU Taxonomy
GRI Content Index
International Sustainability
Standards Board (ISSB)
Sustainability Accounting
Standards Board Response (SASB)
Task Force on Climate-related
Financial Disclosure Response
(TCFD)
Terms We Use
Cautionary Statement Regarding
Forward-Looking Statements
Investor, Contact and Feedback
Information
29)
Material Accounting Policies
29.1)
Principles of Consolidation
The consolidated financial statements include those of Cemex, S.A.B. de C.V. and those of all controlled entities. Balances and operations between related
parties are eliminated in consolidation.
Investments in associates and joint controlled entities are accounted for by the equity method. The equity method reflects the investee’s original cost and
Cemex’s share of the investee’s equity and earnings after acquisition.
29.2)
Use of Estimates and Critical Assumptions
The preparation of financial statements in accordance with IFRS requires management to make estimates and assumptions that affect the reported amounts
of assets and liabilities, and the disclosure of contingent assets and liabilities at the date of the financial statements, as well as the reported amounts of
revenues and expenses during the period. These assumptions are reviewed on an ongoing basis using available information. Actual results could differ from
these estimates. The main items subject to significant estimates and assumptions by management include impairment tests of long-lived assets, recognition
of deferred income tax assets, the recognition of uncertain tax positions, the measurement of asset retirement obligations, as well as provisions regarding
legal proceedings and environmental liabilities, among others. Significant judgment is required by management to appropriately assess the amounts of
these concepts.
29.3)
Foreign Currency Transactions and Translation of Foreign Currency Financial Statements
Transactions denominated in foreign currencies are recorded in the functional currency of each consolidated entity at the exchange rates prevailing on the
dates of their execution. Monetary assets and liabilities denominated in foreign currencies are translated into the functional currency of each consolidated
entity at the exchange rates prevailing at the statement of financial position date, and the resulting foreign exchange fluctuations are recognized in earnings,
except for exchange fluctuations arising from: 1) foreign currency indebtedness associated with the acquisition of foreign entities; and 2) fluctuations
associated with related parties’ balances denominated in foreign currency, whose settlement is neither planned nor likely to occur in the foreseeable future
and as a result, such balances are of a permanent investment nature. These fluctuations are recorded against “Other equity reserves,” as part of the foreign
currency translation adjustment (note 21.2) until the disposal of the foreign net investment, at which time, the accumulated amount in equity is recycled
through the statement of income as part of the gain or loss on disposal.
The financial statements of consolidated entities, as determined using their respective functional currency, are translated to Dollars at the closing exchange
rate for the statement of financial position and at the closing exchange rates of each month within the period for the statements of income. The functional
currency is that in which each consolidated entity primarily generates and expends cash. The corresponding translation effect is included within “Other
equity reserves” and is presented in the statement of other comprehensive income for the period as part of the foreign currency translation adjustment
(note 21.2) until the disposal of the net investment in the consolidated entity.
Considering its integrated activities, for purposes of functional currency, the Parent Company deemed to have two divisions, one related with its financial
and holding company activities, in which the functional currency is the Dollar for all assets, liabilities and transactions associated with these activities, and
another division related with the Parent Company’s operating activities in Mexico, in which the functional currency is the Peso for all assets, liabilities and
transactions associated with these activities.
The most significant closing exchange rates for the statement of financial position and the approximate average exchange rates (as determined using the
closing exchange rates of each month within the period) for the statements of income with respect Cemex’s main functional currencies to the Dollar as of
December 31, 2024, 2023 and 2022, were as follows:
2024
2023
2022
Currency
Closing
Average
Closing
Average
Closing
Average
Peso
20.83
18.55
16.97
17.63
19.50
20.03
Euro
0.9654
0.9265
0.9059
0.9227
0.9344
0.9522
British Pound Sterling
0.7988
0.7819
0.7852
0.8019
0.8266
0.8139
Colombian Peso
4,409
4,104
3,822
4,272
4,810
4,277
199
Cemex 2024 Integrated Report
Notes to the Consolidated
Financial Statements
Contents
Our Company
Our Strategy
Financial Performance
Environmental Excellence
Stakeholder Engagement
Governance
Appendix
Selected Consolidated Financial
Information
• Financial Information
Non-Financial Information
Scope and Boundaries of
This Report
Cemex’s Materiality Assessment
Stakeholder Engagement
Governance
EU Taxonomy
GRI Content Index
International Sustainability
Standards Board (ISSB)
Sustainability Accounting
Standards Board Response (SASB)
Task Force on Climate-related
Financial Disclosure Response
(TCFD)
Terms We Use
Cautionary Statement Regarding
Forward-Looking Statements
Investor, Contact and Feedback
Information
29.4) Financial Instruments
Classification and measurement of financial instruments
Financial assets are classified as “Held to collect” and measured at amortized cost when they meet both of the following conditions and are not designated as
at fair value through profit or loss: a) are held within a business model whose objective is to hold assets to collect contractual cash flows; and b) its contractual
terms give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding. Amortized cost
represents the NPV of the consideration receivable or payable as of the transaction date. This classification of financial assets comprises the following
captions:
• Cash and cash equivalents (note 9).
• Trade accounts receivable, other current accounts receivable and other current assets (notes 10 and 11). Due to their short-term nature, Cemex initially
recognizes these assets at the original invoiced or transaction amount less expected credit losses, as explained below.
• Trade accounts receivable sold under securitization programs, in which certain residual interest in the trade accounts receivable sold in case of recovery
failure and continued involvement in such assets is maintained, do not qualify for derecognition and are maintained in the statement of financial position
(notes 10 and 17.2).
• Investments and non-current accounts receivable (note 14.2). Subsequent changes in effects from amortized cost are recognized in the statement of
income as part of “Financial income and other items, net.”
Certain strategic investments are measured at fair value through other comprehensive income within “Other equity reserves” (note 14.2). Cemex does not
maintain financial assets “Held to collect and sell” whose business model has the objective of collecting contractual cash flows and then selling those financial
assets.
The financial assets that are not classified as “Held to collect” or that do not have strategic characteristics fall into the residual category of held at fair value
through the statement of income as part of “Financial income and other items, net” (note 14.2).
Debt instruments and other financial obligations are classified as “Loans” and measured at amortized cost (notes 17.1 and 17.2). Interest accrued on
financial instruments is recognized within “Other accounts payable and accrued expenses” against financial expense. During the reported periods, Cemex
did not have financial liabilities voluntarily recognized at fair value or associated with fair value hedge strategies with derivative financial instruments.
Derivative financial instruments are recognized as assets or liabilities in the statement of financial position at their estimated fair values, and the changes
in such fair values are recognized in the statement of income within “Financial income and other items, net” for the period in which they occur, except in the
case of hedging instruments as described below.
Hedging instruments (note 17.4)
A hedging relationship is established to the extent the entity considers, based on the analysis of the overall characteristics of the hedging and hedged items,
that the hedge will be highly effective in the future and the hedge relationship at inception is aligned with the entity’s reported risk management strategy
(note 17.5). The accounting categories of hedging instruments are: a) cash flow hedge; b) fair value hedge of an asset or forecasted transaction; and c)
hedge of a net investment in a subsidiary.
In cash flow hedges, the effective portion of changes in fair value of derivative instruments are recognized in stockholders’ equity within other equity reserves
and are reclassified to earnings as the interest expense of the related debt is accrued, in the case of interest rate swaps, or when the underlying products
are consumed in the case of contracts on the price of raw materials and commodities. In hedges of the net investment in foreign subsidiaries, changes in fair
value are recognized in stockholders’ equity as part of the foreign currency translation result within “Other equity reserves” (note 29.3), whose reversal to
earnings would take place upon disposal of the foreign investment. Derivative instruments are negotiated with institutions with significant financial capacity;
therefore, Cemex believes the risk of non-performance of the obligations agreed to by such counterparties to be minimal.
200 Cemex 2024 Integrated Report
Notes to the Consolidated
Financial Statements
Contents
Our Company
Our Strategy
Financial Performance
Environmental Excellence
Stakeholder Engagement
Governance
Appendix
Selected Consolidated Financial
Information
• Financial Information
Non-Financial Information
Scope and Boundaries of
This Report
Cemex’s Materiality Assessment
Stakeholder Engagement
Governance
EU Taxonomy
GRI Content Index
International Sustainability
Standards Board (ISSB)
Sustainability Accounting
Standards Board Response (SASB)
Task Force on Climate-related
Financial Disclosure Response
(TCFD)
Terms We Use
Cautionary Statement Regarding
Forward-Looking Statements
Investor, Contact and Feedback
Information
Impairment of financial assets
Impairment losses of financial assets, including trade accounts receivable, are recognized using the Expected Credit Loss model (“ECL”) for the entire lifetime
of such financial assets on initial recognition, and at each subsequent reporting period, even in the absence of a credit event or if a loss has not yet been
incurred, considering for their measurement past events and current conditions, as well as reasonable and supportable forecasts affecting collectability.
For purposes of the ECL model of trade accounts receivable, on a country-by-country basis, Cemex segments its accounts receivable by type of client,
homogeneous credit risk and days past due and determines for each segment an average rate of ECL, considering actual credit loss experience generally
over the last 12 months and analyses of future delinquency, that is applied to the balance of the accounts receivable. The average ECL rate increases in
each segment of days past due until the rate is 100% for the segment of 365 days or more past due.
Costs incurred in the issuance of debt or borrowings
Direct costs incurred in debt issuances or borrowings, as well as debt refinancing or non-substantial modifications to debt agreements that did not represent
an extinguishment of debt by considering that the holders and the relevant economic terms of the new instrument are not substantially different to the
replaced instrument, adjust the carrying amount of the related debt and are amortized as interest expense as part of the effective interest rate of each
instrument over its maturity. These costs include commissions and professional fees. Costs incurred in the extinguishment of debt, as well as debt refinancing
or modifications to debt agreements, when the new instrument is substantially different from the old instrument according to a qualitative and quantitative
analysis, are recognized in the statement of income as incurred.
Leases (notes 15.2 and 17.2)
At the inception of a contract, Cemex assesses whether a contract is, or contains, a lease. A contract is, or contains a lease, if at the inception of the
contract, it conveys the right to control the use of an identified asset for a period in exchange for consideration. Pursuant to IFRS 16, leases are recognized
as financial liabilities against assets for the right-of-use, measured at their commencement date as the NPV of the future contractual fixed payments, using
the interest rate implicit in the lease or, if that rate cannot be readily determined, Cemex’s incremental borrowing rate. Cemex determines its incremental
borrowing rate by obtaining interest rates from its external financing sources and makes certain adjustments to reflect the term of the lease, the type of the
asset leased and the economic environment in which the asset is leased.
Cemex does not separate the non-lease component from the lease component included in the same contract. Lease payments included in the measurement
of the lease liability comprise contractual rental fixed payments, less incentives, fixed payments of non-lease components and the value of a purchase
option, to the extent that option is highly probable to be exercised or is considered a bargain purchase option. Interest incurred under the financial obligations
related to lease contracts is recognized as part of the “Interest expense” line item in the statement of income.
At the commencement date or on modification of a contract that contains a lease component, Cemex allocates the consideration in the contract to each
lease component based on their relative stand-alone prices. Cemex applies the recognition exception for lease terms of 12 months or less and contracts
of low-value assets and recognizes the lease payment of these leases as rental expense in the statement of income over the lease term. Cemex defined the
lease contracts for office and computer equipment as low-value assets.
The lease liability is measured at amortized cost using the effective interest method as payments are incurred and is remeasured when: a) there is a change
in future lease payments arising from a change in an index or rate, b) if there is a change in the amount expected to be payable under a residual guarantee,
c) if the Company changes its assessment of whether it will exercise a purchase, extension or termination option, or d) if there is a revised in-substance fixed
lease payment. When the lease liability is remeasured, an adjustment is made to the carrying amount of the asset for the right-of-use or is recognized within
“Financial income and other items, net” if such asset has been reduced to zero.
Embedded derivative financial instruments
Cemex reviews its contracts to identify the existence of embedded derivatives. Identified embedded derivatives are analyzed to determine if they need to
be separated from the host contract and recognized in the statement of financial position as assets or liabilities, applying the same valuation rules used for
other derivative instruments.
29.5)
Property, Machinery and Equipment and Assets for the Right-of-Use (Note 15)
Property, machinery and equipment are recognized at their acquisition or construction cost, as applicable, less accumulated depreciation and impairment
losses. Depreciation of fixed assets is recognized as part of cost and operating expenses (notes 5 and 6) and is calculated using the straight-line method
over the estimated useful lives of the assets, except for mineral reserves, which are depleted using the units-of-production method. Periodic maintenance
of fixed assets is expensed as incurred. Advances to suppliers of fixed assets are presented as part of other non-current accounts receivable.
201 Cemex 2024 Integrated Report
Notes to the Consolidated
Financial Statements
Contents
Our Company
Our Strategy
Financial Performance
Environmental Excellence
Stakeholder Engagement
Governance
Appendix
Selected Consolidated Financial
Information
• Financial Information
Non-Financial Information
Scope and Boundaries of
This Report
Cemex’s Materiality Assessment
Stakeholder Engagement
Governance
EU Taxonomy
GRI Content Index
International Sustainability
Standards Board (ISSB)
Sustainability Accounting
Standards Board Response (SASB)
Task Force on Climate-related
Financial Disclosure Response
(TCFD)
Terms We Use
Cautionary Statement Regarding
Forward-Looking Statements
Investor, Contact and Feedback
Information
Assets for the right-of-use related to leases are initially measured at cost, which comprises the initial amount of the lease liability adjusted by any lease
payments made at or before the commencement date, plus any initial direct costs incurred and an estimate of costs to dismantle, remove or restore
the underlying asset, less any lease incentives received. Assets for the right-of-use are generally depreciated using the straight-line method from the
commencement date to the end of the lease term. Assets for the right-of-use may be reduced by impairment losses, if any, and adjusted for certain
remeasurements of the lease liability.
Cemex capitalizes, as part of the related cost of fixed assets, interest expense from existing debt during the construction or installation period of qualifying
fixed assets, considering Cemex’s corporate average interest rate and the average balance of investments in process for the period.
29.6)
Business Combinations, Goodwill and Other Intangible Assets (Notes 4.1 and 16)
The consideration transferred in business combinations is allocated to all assets acquired and liabilities assumed based on their estimated fair values as
of the acquisition date. Any unallocated portion of the consideration transferred represents goodwill, which is not amortized and is subject to periodic
impairment tests (note 29.7). Costs associated with the acquisition are expensed in the statement of income as incurred.
Intangible assets are recognized at their acquisition or development cost, as applicable, when probable future economic benefits are identified and there
is evidence of control over such benefits. Definite life intangible assets are amortized on a straight-line basis or using the units-of-production method, as
applicable, as part of operating costs and expenses (notes 5 and 6). Direct costs incurred in the development stage of computer software for internal use
are capitalized and amortized through the operating results over the useful life of the software, which, on average is five years.
Cemex’s extraction rights have a weighted average useful life of 83 years, depending on the sector and the expected life of the related reserves. Except for
extraction rights which are amortized using the units-of-production method and/or as otherwise indicated, Cemex’s intangible assets are amortized on a
straight-line basis over their useful lives that range on average from 3 to 20 years.
29.7)
Impairment of Long-Lived Assets (Notes 15 and 16)
Property, machinery and equipment, assets for the right-of-use, intangible assets of definite life and other investments
These assets are evaluated for impairment upon the occurrence of internal or external impairment indicators. Impairment losses, corresponding to the
excess of the asset’s carrying amount over its recoverable amount, are recorded within “Other expenses, net.” Recoverable amounts, which include the NPV
of future projected cash flows arising from the asset over its useful life (value in use), are determined considering market economic assumptions.
Goodwill
Goodwill is tested for impairment when required upon the occurrence of internal or external indicators of impairment or at least once a year, during the last
quarter of such year, at the level of the group of cash-generating units (“CGUs”) to which goodwill balances were allocated by determining the recoverable
amount of such group of CGUs, corresponding to the NPV of estimated future cash flows to be generated by such CGUs over periods of 5 years plus
terminal value (value in use). An impairment loss is recognized within “Other expenses, net” when the recoverable amount is lower than the net book value
of the group of CGUs. Impairment charges recognized on goodwill are not reversed in subsequent periods.
The reportable segments reported by Cemex (note 4.3), represent Cemex’s groups of CGUs to which goodwill has been allocated for purposes of testing
goodwill for impairment and represent the lowest level within Cemex at which goodwill is monitored internally by management.
29.8)
Provisions (Notes 18, 24 and 25)
Cemex recognizes provisions when it has a legal or constructive obligation resulting from past events, whose resolution would require cash outflows, or the
delivery of other resources owned by the Company. As of December 31, 2024 and 2023, some significant proceedings that gave rise to a portion of the
carrying amount of Cemex’s other current and non-current liabilities and provisions are detailed in note 25.1.
Obligations or losses related to contingencies are qualitatively disclosed in the notes to the financial statements. The effects of long-term commitments
established with third parties, such as supply contracts with suppliers or customers, are recognized in the financial statements on an incurred or accrued
basis, after taking into consideration the substance of the agreements. Relevant commitments are disclosed in the notes to the financial statements.
29.9)
Pensions and Other Post-Employment Benefits (Note 19)
Defined contribution pension plans
The costs of defined contribution pension plans are recognized in the operating results as they are incurred. Liabilities arising from such plans are settled
through cash transfers to the employees’ retirement accounts, without generating future obligations.
202 Cemex 2024 Integrated Report
Notes to the Consolidated
Financial Statements
Contents
Our Company
Our Strategy
Financial Performance
Environmental Excellence
Stakeholder Engagement
Governance
Appendix
Selected Consolidated Financial
Information
• Financial Information
Non-Financial Information
Scope and Boundaries of
This Report
Cemex’s Materiality Assessment
Stakeholder Engagement
Governance
EU Taxonomy
GRI Content Index
International Sustainability
Standards Board (ISSB)
Sustainability Accounting
Standards Board Response (SASB)
Task Force on Climate-related
Financial Disclosure Response
(TCFD)
Terms We Use
Cautionary Statement Regarding
Forward-Looking Statements
Investor, Contact and Feedback
Information
Defined benefit pension plans and other post-employment benefits
The costs associated with defined benefit pension plans and other post-employment benefits, the latter comprised of health care benefits, life insurance
and seniority premiums, are recognized services are rendered by the employees based on actuarial estimations of the benefits’ present value considering
the advice of external actuaries. For certain pension plans, Cemex has created irrevocable trust funds to cover future benefit payments (“plan assets”).
These plan assets are valued at their estimated fair value at the statement of financial position date. All actuarial gains and losses for the period, related to
differences between the projected and real actuarial assumptions at the end of the period, as well as the difference between the expected and actual return
on plan assets, are recognized as part of “Other items of comprehensive income, net” within stockholders’ equity.
The service cost, corresponding to the increase in the obligation for additional benefits earned by employees during the period, is recognized within operating
costs and expenses. The net interest cost, resulting from the increase in obligations for changes in NPV and the change during the period in the estimated
fair value of plan assets, is recognized within “Financial income and other items, net.”
Termination benefits
Termination benefits, not associated with a restructuring event, which mainly represent severance payments by law, are recognized in the operating results
for the period in which they are incurred. In the event of restructuring, the expenses are recognized within “Other expenses, net.”
29.10) Income Taxes (Note 20)
The income taxes reflected in the statement of income include the amounts incurred during the period and the amounts of deferred income taxes, determined
according to the income tax law applicable to each subsidiary, reflecting any uncertainty in income tax treatments and include the effects measured in each
subsidiary by applying the enacted statutory income tax rate at the end of the reporting period. According to IFRS, all items charged or credited directly in
stockholders’ equity or as part of other comprehensive income or loss for the period are recognized net of their current and deferred income tax effects.
The effect of a change in enacted statutory tax rates is recognized in the period in which the change is officially enacted.
Deferred income taxes
Deferred tax assets are reviewed at each reporting date and are derecognized when it is not deemed probable that the related tax benefit will be realized,
considering the aggregate amount of self-determined tax loss carryforwards that Cemex believes will not be rejected by the tax authorities based on
available evidence and the likelihood of recovering them prior to their expiration through an analysis of estimated future taxable income. To determine
whether it is probable that deferred tax assets will ultimately be recovered, Cemex takes into consideration all available positive and negative evidence,
including factors such as market conditions, industry analysis, expansion plans, projected taxable income, carryforward periods, current tax structure,
potential changes or adjustments in tax structure, tax planning strategies, future reversals of existing temporary differences. Deferred income tax assets
and liabilities relating to different tax jurisdictions are not offset.
Uncertain tax positions
The income tax effects of uncertain tax positions are recognized when it is probable that the position will be sustained based on its technical merits and
assuming that the tax authorities will examine each position with full knowledge of all relevant information. For each position, Cemex considers its probability,
regardless of its relation to any broader tax settlement. The probability threshold represents a positive assertion by management that Cemex is entitled to
the economic benefits of a tax position. If a tax position is considered not probable to be sustained, no benefits of the position are recognized. Interest and
penalties related to unrecognized tax benefits are recorded as part of the income tax in the statements of income based on the Company’s analysis of the
nature of such interest and penalties, considering recent IFRS Interpretations Committee guidance.
203 Cemex 2024 Integrated Report
Notes to the Consolidated
Financial Statements
Contents
Our Company
Our Strategy
Financial Performance
Environmental Excellence
Stakeholder Engagement
Governance
Appendix
Selected Consolidated Financial
Information
• Financial Information
Non-Financial Information
Scope and Boundaries of
This Report
Cemex’s Materiality Assessment
Stakeholder Engagement
Governance
EU Taxonomy
GRI Content Index
International Sustainability
Standards Board (ISSB)
Sustainability Accounting
Standards Board Response (SASB)
Task Force on Climate-related
Financial Disclosure Response
(TCFD)
Terms We Use
Cautionary Statement Regarding
Forward-Looking Statements
Investor, Contact and Feedback
Information
Effective income tax rate
The effective income tax rate is determined by dividing the line item “Income tax” by the line item “Earnings before income tax.” This effective tax rate is
further reconciled to Cemex’s statutory tax rate applicable in Mexico (note 20.3). A significant effect on Cemex’s effective tax rate and consequently on the
reconciliation of Cemex’s effective tax rate, relates to the difference between the statutory income tax rate in Mexico of 30% and the applicable income tax
rates of each country where Cemex operates.
For the years ended December 31, 2024, 2023 and 2022, the statutory tax rates in Cemex’s main operations were as follows:
Country
2024
2023
2022
Mexico
30.0%
30.0%
30.0%
United States
21.0%
21.0%
21.0%
United Kingdom
25.0%
23.5%
19.0%
France
25.8%
25.8%
25.8%
Germany
28.2%
28.2%
28.2%
Spain
25.0%
25.0%
25.0%
Israel
23.0%
23.0%
23.0%
Colombia
35.0%
35.0%
35.0%
Other operations
15.0% – 30.0%
15.0% – 30.0%
18.0% – 30.0%
Cemex’s current and deferred income tax amounts included in the statement of income for the period are highly variable, and are subject, among other
factors, to taxable income determined in each jurisdiction in which Cemex operates. Such amounts of taxable income depend on factors such as sale
volumes and prices, costs and expenses, exchange rate fluctuations and interest on debt, among others, as well as the estimated tax assets at the end of the
period due to the expected future generation of taxable gains in each jurisdiction.
Global minimum tax
On July 10, 2021, the intergovernmental international group promoting economic and financial cooperation known as G20 endorsed the key components
of the Pillar Two tax reform that was agreed by 132 countries and jurisdictions (Inclusive Framework on Base Erosion and Profit Shifting or the “Inclusive
Framework”). The key components of Pillar Two, which are commonly referred to as the “global minimum tax” introduce a minimum effective tax rate of
at least 15%, calculated based on a specific rule set, known as “GloBE model rules”, which was published on December 20, 2021, by the Organization for
Economic Co-operation and Development (“OECD”), as approved by the Inclusive Framework. Groups with an effective tax rate below the minimum in
any particular jurisdiction would be required to pay top-up tax at the level of the ultimate parent entity or the intermediate parent entities, as applicable,
based on the Income Inclusion Rule. The global minimum tax would be applied to groups with annual revenue of at least 750 million Euros. Among the
countries in which Cemex operates, Switzerland and the EU have endorsed the global minimum tax, and consequently, the rule will start to be applied at the
level of Cemex’s Swiss on January 1, 2025, and for Spanish intermediate parent entity started January 1, 2024, each considering all their corresponding
subsidiaries. For instance, if the effective tax rate of a jurisdiction where subsidiaries of Cemex España operate as determined using each individual entity’s
financial statements (considering certain adjustments) is below 15% on a combined basis, Cemex España would then need to pay in Spain the difference
between the implied effective tax rate and the minimum tax rate of 15%, unless a Qualified Domestic Minimum Top-up Tax is in effect, in which case, any
top-up tax would be paid in such jurisdiction. As of December 31, 2024, the effects of Pillar Two implementation are not material.
204 Cemex 2024 Integrated Report
Notes to the Consolidated
Financial Statements
Contents
Our Company
Our Strategy
Financial Performance
Environmental Excellence
Stakeholder Engagement
Governance
Appendix
Selected Consolidated Financial
Information
• Financial Information
Non-Financial Information
Scope and Boundaries of
This Report
Cemex’s Materiality Assessment
Stakeholder Engagement
Governance
EU Taxonomy
GRI Content Index
International Sustainability
Standards Board (ISSB)
Sustainability Accounting
Standards Board Response (SASB)
Task Force on Climate-related
Financial Disclosure Response
(TCFD)
Terms We Use
Cautionary Statement Regarding
Forward-Looking Statements
Investor, Contact and Feedback
Information
29.11) Stockholders’ Equity
Other equity reserves and subordinated notes (note 21.2)
Groups the cumulative effects of items and transactions that are, temporarily or permanently, recognized directly to stockholders’ equity, and includes the
comprehensive income, which reflects certain changes in stockholders’ equity that do not result from investments by owners and distributions to owners, as
well as Subordinated Notes (note 21.2).
The most significant items within “Other equity reserves and subordinated notes” during the reported periods are as follows:
Items of “Other equity reserves and subordinated notes” included in the determination of other comprehensive income:
• Currency translation effects from the translation of foreign subsidiaries, including: a) exchange results from foreign currency debt related to the acquisition
of foreign subsidiaries; and b) exchange results from foreign currency related parties’ balances that are of a non-current investment class (note 29.3);
• The effective portion of the valuation and liquidation effects from derivative financial instruments under cash flow hedging relationships, which are
recorded temporarily in stockholders’ equity (note 29.4);
• Changes in fair value of other investments in strategic securities (note 29.4); and
• Current and deferred income taxes during the period arising from items which effects are directly recognized in stockholders’ equity.
Items of “Other equity reserves and subordinated notes” not included in in the determination of other comprehensive income:
• Effects related to controlling stockholders’ equity for changes or transactions affecting non-controlling interest stockholders in Cemex’s consolidated
subsidiaries;
• Effects attributable to controlling stockholders’ equity for financial instruments issued by consolidated subsidiaries that qualify for accounting purposes
as equity instruments, such as the interest expense paid on perpetual debentures;
• The balance of Subordinated Notes with no fixed maturity and any interest accrued thereof; and
• The cancellation of the Parent Company’s shares held by consolidated entities or held in trust for the liquidation of executive long-term share-based
compensation.
29.12) Executive Share-Based Compensation (Note 22)
Share-based payments to executives are defined as equity instruments when services received from employees are settled by delivering shares of the
Parent Company and/or a subsidiary; or as liability instruments when Cemex commits to making cash payments to the executives upon exercise of the
awards based on changes in the Parent Company and/or the subsidiary’s stock (intrinsic value). The cost of equity instruments represents their estimated
fair value at the date of grant and is recognized in the operating results during the periods in which the executives release any restriction. Cemex does not
grant liability instruments.
29.13) Allowances Related to Emissions of CO2
In certain countries where Cemex operates, including the EU countries and the United Kingdom, among others, mechanisms aimed at reducing carbon
dioxide emissions have been established, such as the EU ETS and UK ETS, respectively, by means of which, under the outstanding rules, the relevant
environmental authorities have granted annually to the entities that release CO2, such as the cement industry, certain number of carbon emission rights
(“Allowances”) free of cost. Entities in turn must submit to such environmental authorities at the end of the compliance period, Allowances for a volume
equivalent to the tons of CO2 released. Companies must buy additional Allowances to meet deficits between actual CO2 emissions during the compliance
period and Allowances received. In general, failure to deliver the required Allowances is subject to significant monetary penalties. Entities may also dispose
of any surplus of Allowances in the market. The trend is that Allowances received free of cost will be reduced over time from 2026 to zero by 2034 so that
entities are compelled to act and gradually reduce the aggregate volume of emissions. EU ETS and UK ETS rules are periodically reviewed to ensure they
remain effective and aligned with the EU’s and UK’s climate goals respectively.
As of December 31, 2024, according to management estimates (unaudited), Cemex held excess Allowances received for no consideration in prior years which,
together with ongoing mitigation and emission offsetting initiatives, should be sufficient to allow the Company offsetting CO2 costs in the EU and the United
Kingdom operations until 2028; a significant portion of the 2029 and 2030 deficit is being covered with forward purchase commitments (note 24.1).
205 Cemex 2024 Integrated Report
Notes to the Consolidated
Financial Statements
Contents
Our Company
Our Strategy
Financial Performance
Environmental Excellence
Stakeholder Engagement
Governance
Appendix
Selected Consolidated Financial
Information
• Financial Information
Non-Financial Information
Scope and Boundaries of
This Report
Cemex’s Materiality Assessment
Stakeholder Engagement
Governance
EU Taxonomy
GRI Content Index
International Sustainability
Standards Board (ISSB)
Sustainability Accounting
Standards Board Response (SASB)
Task Force on Climate-related
Financial Disclosure Response
(TCFD)
Terms We Use
Cautionary Statement Regarding
Forward-Looking Statements
Investor, Contact and Feedback
Information
205 Cemex 2024 Integrated Report
Notes to the Consolidated
Financial Statements
Contents
Our Company
Our Strategy
Financial Performance
Environmental Excellence
Stakeholder Engagement
Governance
Appendix
Selected Consolidated Financial
Information
• Financial Information
Non-Financial Information
Scope and Boundaries of
This Report
Cemex’s Materiality Assessment
Stakeholder Engagement
Governance
EU Taxonomy
GRI Content Index
International Sustainability
Standards Board (ISSB)
Sustainability Accounting
Standards Board Response (SASB)
Task Force on Climate-related
Financial Disclosure Response
(TCFD)
Terms We Use
Cautionary Statement Regarding
Forward-Looking Statements
Investor, Contact and Feedback
Information
Cemex accounts for the effects associated with CO2 emission reduction mechanisms as follows:
• Allowances received for no consideration paid are recognized at zero cost in the statement of financial position.
• Revenues received from the sale of excess Allowances are recognized in the statement of income in the period in which they occur.
• Allowances acquired to hedge expected deficits of CO2 emissions, i.e. for own use-only with no trading intention, are recognized as intangible assets at
cost and are amortized to the cost of sales during the relevant compliance period as emissions are released.
• Cemex would accrue a provision at market value against the cost of sales if current emissions of CO2 exceed the number of emission rights on hand and
the required additional Allowances have not yet been acquired in the market.
• In addition, in certain countries, the environmental authorities impose levies per ton of CO2 or other greenhouse gases released. Such expenses are
recognized as part of the cost of sales as incurred.
29.14) Concentration of Credit
Cemex sells its products primarily to distributors in the construction industry, with no specific geographic concentration within the countries in which Cemex
operates. As of and for the years ended December 31, 2024, 2023 and 2022, no single customer individually accounted for a significant amount of the
reported amounts of sales or in the balances of trade accounts receivable. In addition, there is no significant concentration of a specific supplier relating to
the purchase of raw materials.
29.15) Newly Issued IFRS Not Yet Adopted
There are several amendments or new IFRS issued but not yet effective which are under analysis and the Company’s management expects to adopt in
their specific effective dates considering preliminarily without any significant effect on the Company’s financial position or operating results, and which are
summarized as follows:
Standard
Main topic
Effective date
Amendments to IAS 21, The Effects of
Changes in Foreign Exchange Rates –
Lack of Exchangeability
The amendments require an entity to apply a consistent approach to assessing
whether a currency is exchangeable into another currency and when it is not, to
determine the exchange rate to use and the disclosures to provide.
January 1, 2025
Amendments to the Classification and
Measurement of Financial Instruments
– Amendments to IFRS 9, Financial
Instruments and IFRS 7, Financial
Instruments: Disclosures
The amendments to IFRS 9 and IFRS 7 clarify the derecognition of financial liabilities
on the settlement date, allow accounting options for electronic settlements, and
require additional disclosures for financial assets and liabilities with contingent
terms, including Environmental, Social and Governance features.
January 1, 2026
In addition, IFRS 18, Presentation and Disclosure in Financial Statements, which replaces IAS 1 and is effective beginning January 1, 2027, introduces
new categories and subtotals in the statement of profit or loss, requires disclosure of management-defined performance measures, and establishes new
requirements for the location, aggregation, and disaggregation of financial information. Cemex is analyzing these changes in formats and presentation.
206 Cemex 2024 Integrated Report
Contents
Our Company
Our Strategy
Financial Performance
Environmental Excellence
Stakeholder Engagement
Governance
Appendix
Selected Consolidated Financial
Information
• Financial Information
Non-Financial Information
Scope and Boundaries of
This Report
Cemex’s Materiality Assessment
Stakeholder Engagement
Governance
EU Taxonomy
GRI Content Index
International Sustainability
Standards Board (ISSB)
Sustainability Accounting
Standards Board Response (SASB)
Task Force on Climate-related
Financial Disclosure Response
(TCFD)
Terms We Use
Cautionary Statement Regarding
Forward-Looking Statements
Investor, Contact and Feedback
Information
Independent
Auditors’ Report
U.S. Dollars
To the Board of Directors and Stockholders
Cemex, S.A.B. de C.V.
Opinion
We have audited the consolidated financial statements of Cemex, S.A.B. de C.V. and subsidiaries (“the Group”), which comprise the consolidated statements
of financial position as at December 31, 2024 and 2023, the consolidated statements of income, comprehensive income, changes in stockholders’ equity and
cash flows for the years ended December 31, 2024, 2023 and 2022, and notes comprising material accounting policies and other explanatory information.
In our opinion, the accompanying consolidated financial statements present fairly, in all material respects, the consolidated financial position of the Group
as at December 31, 2024 and 2023, and its consolidated financial performance and its consolidated cash flows for the years ended December 31, 2024,
2023 and 2022 in accordance with IFRS Accounting Standards as issued by the International Accounting Standards Board (IFRS Accounting Standards).
Basis for Opinion
We conducted our audit in accordance with International Standards on Auditing (ISAs). Our responsibilities under those standards are further described in
the Auditors’ Responsibilities for the Audit of the Consolidated Financial Statements section of our report. We are independent of the Group in accordance
with the ethical requirements that are relevant to our audit of the consolidated financial statements in Mexico, and we have fulfilled our other ethical
responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our opinion.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the consolidated financial statements of
the current period. These matters were addressed in the context of our audit of the consolidated financial statements as a whole, and in forming our opinion
thereon, and we do not provide a separate opinion on these matters.
Independent Auditors’ Report
Evaluation of the goodwill impairment analysis for a group of cash-generating units
The key audit matter
As discussed in notes 16.2 and 29.7 to the consolidated financial
statements, the goodwill balance as of December 31, 2024 was
$7,441 million, of which $6,176 million relate to the group of Cash-
Generating Units in the United States of America (“the group of
CGUs”). The goodwill balance represents 27% of the Group’s total
consolidated assets as of December 31, 2024. Goodwill is tested for
impairment upon the occurrence of internal or external indicators of
impairment or at least once a year.
We have identified the evaluation of the goodwill impairment analysis
for the group of CGUs as a key audit matter because the estimated
value in use involved a high degree of subjectivity. Specifically,
the discount rate and the long-term growth rate used to calculate
the value in use of the group of CGUs were challenging to test and
changes to these assumptions could have had a significant impact on
the value in use amount.
How the matter was addressed in our audit
Our audit procedures in this area included, among others, the following:
We performed sensitivity analyses over the discount rate and the long-term
growth rate assumptions to assess their impact on the determination of the value
in use of the group of CGUs.
We evaluated the Group’s forecasted long-term growth rates for the group of
CGUs by comparing the growth assumptions to publicly available data.
We compared the Group’s historical cash flow forecasts to actual results to assess
the Group’s ability to accurately forecast.
To assess the overall reasonableness of the resulting value in use determination,
we evaluated the implied multiples of earnings resulting from the value in use de-
termination against publicly available information of multiples of earnings in mar-
ket transactions.
In addition, we involved our valuation specialists, who assisted in:
— Evaluating the discount rate for the group of CGUs and performing sensitivity
analyses by comparing with a discount rate range that was independently
developed using publicly available data for comparable entities and evaluating
the long-term growth rate by comparing it against publicly available data; and
— Performing sensitivity analyses of the value in use of the group of CGUs using
the Group’s cash flow forecasts and determining an independently developed
discount rate and comparing the results of our estimates to the Group’s estimates
of value in use.
Evaluation of impairment indicators related to a cement plant
The key audit matter
As discussed in notes 15.1 and 29.7 to the consolidated financial
statements, the construction in progress balance as of December
31, 2024 was $1,931 million, of which $335 million relate to the car-
rying amount of a cement plant in Colombia (“the Plant”). Property,
machinery and equipment assets, including construction in progress,
are evaluated for impairment upon the occurrence of internal or ex-
ternal impairment indicators. As discussed in note 25.3, the Group is
involved in certain legal proceedings related to the Plant.
The evaluation of identification and assessment of impairment
indicators related to the Plant is considered a key audit matter.
Subjective judgment is required to evaluate the identification and
assessment of impairment indicators related to the Plant due to
uncertainty and judgement around the expected outcome of legal
proceedings and their impact on the assessment.
How the matter was addressed in our audit
Our audit procedures in this area included, among others, the following:
We evaluated the professional qualifications, competence, and capabilities of the
in-house and external lawyers of the Group that assessed the current status and the
expected outcome of legal proceedings.
We involved our legal specialists with specialized skills and knowledge, who assisted
in our evaluation of the Group’s external counsel’s assessment of the current
status and the expected outcome of the legal proceedings and the impact on the
identification and assessment of impairment indicators related to the Plant by:
— Inquiring with Group’s officials responsible for the monitoring of these legal
proceedings
— Inspecting letters received directly from the Group’s external counsel
— Inspecting the latest correspondence issued by the corresponding authorities,
as applicable.
207 Cemex 2024 Integrated Report
Contents
Our Company
Our Strategy
Financial Performance
Environmental Excellence
Stakeholder Engagement
Governance
Appendix
Selected Consolidated Financial
Information
• Financial Information
Non-Financial Information
Scope and Boundaries of
This Report
Cemex’s Materiality Assessment
Stakeholder Engagement
Governance
EU Taxonomy
GRI Content Index
International Sustainability
Standards Board (ISSB)
Sustainability Accounting
Standards Board Response (SASB)
Task Force on Climate-related
Financial Disclosure Response
(TCFD)
Terms We Use
Cautionary Statement Regarding
Forward-Looking Statements
Investor, Contact and Feedback
Information
Independent Auditors’ Report
Other Information
Management is responsible for the other information. The other information comprises the information included in the Group’s annual report for the year
ended December 31, 2024, to be filed with the National Banking and Securities Commission (Mexico) (Comisión Nacional Bancaria y de Valores) and the
Mexican Stock Exchange (Bolsa Mexicana de Valores) (“the Annual Report”) but does not include the consolidated financial statements and our auditors’
report thereon. The Annual Report is expected to be made available to us after the date of this auditors’ report.
Our opinion on the consolidated financial statements does not cover the other information and we will not express any form of assurance conclusion thereon.
In connection with our audit of the consolidated financial statements, our responsibility is to read the other information identified above when it becomes
available and, in doing so, consider whether the other information is materially inconsistent with the consolidated financial statements or our knowledge
obtained in the audit, or otherwise appears to be materially misstated.
When we read the Annual Report, if we conclude that there is a material misstatement therein, we are required to communicate the matter to those charged
with governance.
Responsibilities of Management and Those Charged with Governance for the Consolidated Financial Statements
Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with IFRS Accounting Standards,
and for such internal control as management determines is necessary to enable the preparation of consolidated financial statements that are free from
material misstatement, whether due to fraud or error.
In preparing the consolidated financial statements, management is responsible for assessing the Group’s ability to continue as a going concern, disclosing,
as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Group
or to cease operations, or has no realistic alternative but to do so.
Those charged with governance are responsible for overseeing the Group’s financial reporting process.
Auditors’ Responsibilities for the Audit of the Consolidated Financial Statements
Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement,
whether due to fraud or error, and to issue an auditors’ report that includes our opinion. ‘Reasonable assurance’ is a high level of assurance, but is not a
guarantee that an audit conducted in accordance with ISAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or
error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken
on the basis of these consolidated financial statements.
As part of an audit in accordance with ISAs, we exercise professional judgment and maintain professional scepticism throughout the audit. We also:
– Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, design and perform audit
procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not
detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional
omissions, misrepresentations, or the override of internal control.
– Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for
the purpose of expressing an opinion on the effectiveness of the Group’s internal control.
– Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
– Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether
a material uncertainty exists related to events or conditions that may cast significant doubt on the Group’s ability to continue as a going concern. If we
conclude that a material uncertainty exists, we are required to draw attention in our auditors’ report to the related disclosures in the consolidated financial
statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our
auditors’ report. However, future events or conditions may cause the Group to cease to continue as a going concern.
208 Cemex 2024 Integrated Report
Contents
Our Company
Our Strategy
Financial Performance
Environmental Excellence
Stakeholder Engagement
Governance
Appendix
Selected Consolidated Financial
Information
• Financial Information
Non-Financial Information
Scope and Boundaries of
This Report
Cemex’s Materiality Assessment
Stakeholder Engagement
Governance
EU Taxonomy
GRI Content Index
International Sustainability
Standards Board (ISSB)
Sustainability Accounting
Standards Board Response (SASB)
Task Force on Climate-related
Financial Disclosure Response
(TCFD)
Terms We Use
Cautionary Statement Regarding
Forward-Looking Statements
Investor, Contact and Feedback
Information
– Evaluate the overall presentation, structure and content of the consolidated financial statements, including the disclosures, and whether the consolidated
financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
– Plan and perform the group audit to obtain sufficient appropriate audit evidence regarding the financial information of the entities or business units within
the group as a basis for forming an opinion on the group financial statements. We are responsible for the direction, supervision and review of the audit
work performed for purposes of the group audit. We remain solely responsible for our audit opinion.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit
findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and
communicate with them all relationships and other matters that may reasonably be thought to bear on our independence and where applicable, actions
taken to eliminate threats or safeguards applied.
From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the
consolidated financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditors’ report unless law
or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated
in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.
KPMG Cárdenas Dosal, S.C.
C.P.C. Arturo González Prieto
Monterrey, N.L.
February 14, 2025
Independent Auditors’ Report
209 Cemex 2024 Integrated Report
Contents
Our Company
Our Strategy
Financial Performance
Environmental Excellence
Stakeholder Engagement
Governance
Appendix
Selected Consolidated Financial
Information
• Financial Information
Non-Financial Information
Scope and Boundaries of
This Report
Cemex’s Materiality Assessment
Stakeholder Engagement
Governance
EU Taxonomy
GRI Content Index
International Sustainability
Standards Board (ISSB)
Sustainability Accounting
Standards Board Response (SASB)
Task Force on Climate-related
Financial Disclosure Response
(TCFD)
Terms We Use
Cautionary Statement Regarding
Forward-Looking Statements
Investor, Contact and Feedback
Information
210 Cemex 2024 Integrated Report
Contents
Our Company
Our Strategy
Financial Performance
Environmental Excellence
Stakeholder Engagement
Governance
Appendix
Selected Consolidated Financial
Information
Financial Information
• Non-Financial Information
Scope and Boundaries of
This Report
Cemex’s Materiality Assessment
Stakeholder Engagement
Governance
EU Taxonomy
GRI Content Index
International Sustainability
Standards Board (ISSB)
Sustainability Accounting
Standards Board Response (SASB)
Task Force on Climate-related
Financial Disclosure Response
(TCFD)
Terms We Use
Cautionary Statement Regarding
Forward-Looking Statements
Investor, Contact and Feedback
Information
Health and Safety2
2022
2023
20241
Fatalities (No.)
Employees
3
3
1
Contractors
0
1
2
Employee Fatality Rate (per 10,000 employees)
0.6
0.7
0.2
Lost Time Injuries (LTIs) (No.)
Employees
56
63
60
Contractors
49
34
28
Lost Time Injury Frequency Rate (LTI FR) (per million hours worked)
Employees3
0.5
0.6
0.6
Contractors4
0.7
0.6
0.5
Employee Lost Time Injury Severity Rate (LTI SR)
(lost days per million hours worked)4
56.7
53.6
50.9
Employee Total Recordable Injury Frequency Rate (TRI FR)
(per million hours worked)
2.3
2.7
2.5
Lost Days from Employee Lost Time Injuries (No.)4
1,297
1,272
1,184
Employee Sickness Absence Rate (%)
1.8
1.6
1.7
Employee Occupational Illness Frequency Rate (OIFR)
(incidents per million hours worked)4
0.1
0.0
0.0
Sites with a Health and Safety Management System
implemented (%)
100
100
100
Sites certified with ISO 45001 (%)4
70
72
70
Our People
2022
2023
20241
Workforce by region (No.)
Mexico
16,281
18,304
17,948
United States
8,949
9,021
9,241
Europe, Middle East, Africa, and Asia
11,664
12,073
11,364
South, Central America, and the Caribbean
5,216
5,151
4,571
Global Corporate
1,355
1,514
1,536
Total
43,465
46,063
44,660
Our People
2022
2023
20241
Workforce by type of employment contract (%)5
Permanent
91
91
92
Temporary
9
9
8
Workforce by employment type (%)5
Full-time
99
99
99
Part-time
1
1
1
Workforce by position (%)6
Senior Leadership
4
4
4
Middle Management
6
6
6
Entry Level
31
30
33
Operational positions
59
60
57
Workforce by age (%)
Under 30
17
16
14
31-40
31
31
43
41-50
26
27
16
51 and over
26
26
28
Workforce by gender (%)
Male
84
84
84
Female
16
16
16
Female employees by management position (%)6
Senior Leadership
20
22
23
Middle Management
23
24
24
Entry Level
36
37
35
Operational positions
3
4
5
Women to men remuneration ratio by region
Mexico
1.47
1.36
1.40
United States
1.09
1.09
1.11
Europe, Middle East, Africa, and Asia
1.02
1.03
1.01
South, Central America and the Caribbean
1.23
1.19
1.27
Global Corporate
0.46
0.53
0.53
Total
1.01
1.08
1.09
Non-Financial Information
211
Cemex 2024 Integrated Report
Contents
Our Company
Our Strategy
Financial Performance
Environmental Excellence
Stakeholder Engagement
Governance
Appendix
Selected Consolidated Financial
Information
Financial Information
• Non-Financial Information
Scope and Boundaries of
This Report
Cemex’s Materiality Assessment
Stakeholder Engagement
Governance
EU Taxonomy
GRI Content Index
International Sustainability
Standards Board (ISSB)
Sustainability Accounting
Standards Board Response (SASB)
Task Force on Climate-related
Financial Disclosure Response
(TCFD)
Terms We Use
Cautionary Statement Regarding
Forward-Looking Statements
Investor, Contact and Feedback
Information
Our People
2022
2023
20241
Employee Voluntary Turnover by age (%)
Under 30
22.1
21.0
18.1
31-40
14.4
14.2
12.4
41-50
7.7
9.0
8.3
51 and over
6.3
6.5
6.6
Employee Involuntary Turnover by gender (%)
Male
10.0
9.4
12.0
Female
7.7
7.7
9.1
Employee Involuntary Turnover by age (%)
Under 30
16.1
13.8
16.8
31-40
10.5
10.2
12.7
41-50
7.5
7.4
9.2
51 and over
6.6
7.0
7.6
Employees covered by a collective bargaining agreement by
region (%)5
Mexico
20
22
22
United States
6
5
5
Europe, Middle East, Africa, and Asia
18
17
18
South, Central America and the Caribbean
2
2
2
Global Corporate
-
-
-
Total
46
46
48
Notice to employees regarding operational changes (average days)
13
24
24
Countries with practices to promote local hiring (%)
74
81
84
Open positions filled by internal candidates (%)
41
29
25
Total new hires (No.)
7,933
8,293
6,260
New hires by gender (%)
Female
19
18
19
Male
81
82
81
New hires by age (%)
Under 30
38
37
43
31-40
36
36
33
41-50
17
19
16
51 and over
9
8
7
Our People
2022
2023
20241
Women to men remuneration ratio by position6
Senior Leadership
-
-
0.60
Middle Management
-
-
0.85
Entry Level
-
-
0.93
Operational positions
-
-
0.99
Employee highest to median compensation ratio by region
Mexico
75.7
75.6
123.1
United States
20.5
20.1
35.6
Europe, Middle East, Africa, and Asia
15.4
16.6
16.9
South, Central America and the Caribbean
12.7
25.0
76.7
Global Corporate
108.9
93.7
116.1
Total
20.3
20.9
28.7
Cemex entry level to local minimum wage ratio by region
Mexico
1.1
1.1
1.0
United States
2.1
2.0
2.2
Europe, Middle East, Africa, and Asia
1.3
1.3
1.2
South, Central America and the Caribbean
1.1
1.4
1.3
Global Corporate
2.4
2.0
2.0
Total
1.3
1.5
1.5
Increase in annual compensation by region (%)
Mexico
6.5
8.5
6.0
United States
3.5
5.0
4.0
Europe, Middle East, Africa, and Asia
5.6
7.5
5.4
South, Central America and the Caribbean
5.1
10.2
7.0
Global Corporate
6.5
8.5
6.0
Total
4.9
7.7
5.5
Employee Turnover (%)
Voluntary
11.8
12.0
11.2
Involuntary
9.6
9.2
11.5
Total
21.4
21.2
22.7
Employee Voluntary Turnover by gender (%)
Male
12.2
12.6
11.6
Female
9.8
9.3
8.9
212
Cemex 2024 Integrated Report
Contents
Our Company
Our Strategy
Financial Performance
Environmental Excellence
Stakeholder Engagement
Governance
Appendix
Selected Consolidated Financial
Information
Financial Information
• Non-Financial Information
Scope and Boundaries of
This Report
Cemex’s Materiality Assessment
Stakeholder Engagement
Governance
EU Taxonomy
GRI Content Index
International Sustainability
Standards Board (ISSB)
Sustainability Accounting
Standards Board Response (SASB)
Task Force on Climate-related
Financial Disclosure Response
(TCFD)
Terms We Use
Cautionary Statement Regarding
Forward-Looking Statements
Investor, Contact and Feedback
Information
Social Impact
2022
2023
20241
Individuals benefited from volunteering programs (thousand)
325
406
410
Community partners (i.e. individuals positively impacted by
our social initiatives) (thousand)12
26,419
27,523
29,715
Priority sites from all businesses that have implemented
Community Engagement Plan (CEP) (%)13
91
100
99
Priority Sites with Local Stakeholder Management Plan (%)13
-
-
99
Priority Sites with Community Risks Mapping and Management (%)13
-
-
99
Carbon Strategy and Energy
2022
2023
20241
Scope 1 absolute gross CO2 emissions in cement (million ton)14
35.3
32.5
26.4
Scope 1 absolute net CO2 emissions in cement (million ton)14,15
31.9
29.0
23.9
Scope 2 absolute CO2 emissions in cement (million ton)16,17
3.0
2.7
2.0
Scope 1 specific gross CO2 emissions
(kg CO2/ton of cementitious product)14
621
603
580
Scope 1 specific net CO2 emissions
(kg CO2/ton of cementitious product)14,18
562
541
526
Scope 2 specific CO2 emissions
(kg CO2/ton of cementitious product)14,19
52.4
50.6
44.7
Scope 1 + 2 specific gross CO2 emissions
(kg CO2/ton of cementitious product)
673
654
625
Reduction in CO2 emissions per ton of cementitious product from
1990 baseline (%)
29.9
32.6
33.9
Reduction in CO2 emissions per ton of cementitious product from
2020 baseline (%)
9.3
12.8
15.2
Scope 1 CO2 gross emissions (million ton)20
36.2
33.3
27.2
Scope 2 CO2 emissions (million ton)21
3.1
2.9
2.2
Scope 3 CO2 emissions (million ton)22
17.8
16.4
13.4
Category 1: Purchased goods and services (million ton)23
6.3
5.9
4.8
Category 2: Capital goods (million ton)
0.2
0.2
0.2
Category 3: Fuel and energy related (million ton)23
2.7
2.4
2.0
Category 4: Upstream transport (million ton)
2.2
2.0
1.7
Category 5: Waste (million ton)
0.002
0.002
0.002
Category 6: Business travel (million ton)
0.04
0.02
0.02
Category 7: Employee commuting (million ton)
0.03
0.06
0.05
Category 8: Upstream leased assets (million ton)
-
-
-
Category 9: Downstream transport (million ton)
0.9
0.6
0.6
Our People
2022
2023
20241
New hires by region (%)
Mexico
48
52
45
United States
23
20
24
Europe, Middle East, Africa, and Asia
12
15
14
South, Central America and the Caribbean
15
12
15
Global Corporate
2
2
2
Employee training by gender (average hours/year)
Male
11
18
18
Female
18
19
19
Total
12
19
18
Employee training by position (average hours/year)6
Senior Leadership
-
-
21
Middle Management
-
-
23
Entry Level
-
-
23
Operational positions
-
-
14
Investment in employee training and development (US$ million)
6.1
8.5
8.4
Employees that are engaged to the company
[EEI - Employee Engagement Index] (%)7
86
88
88
Employee Net Promoter Score (eNPS)
45
57
54
Sustainable Construction
2022
2023
20241
Percentage of products that qualify for credits in sustainable
building design and construction certifications (% sales volume)
-
-
59
Vertua® Lower carbon cement sales vs. total cement volume
sold (%)
41
56
63
Vertua® Lower carbon concrete sales vs. total ready-mix concrete
volume sold (%)
33
48
55
Social Impact
2022
2023
20241
People graduated from employability programs (No.)8
-
-
4,512
Families participating in home improvement programs (thousand)9
808
822
834
People trained in emergency preparedness (No.)10
-
-
7,947
People trained in road safety (No.)11
-
-
18,064
Employee participations in volunteering programs (No.)
5,932
10,010
9,769
Employee hours invested in volunteering programs (No.)
42,704
76,338
51,629
213
Cemex 2024 Integrated Report
Contents
Our Company
Our Strategy
Financial Performance
Environmental Excellence
Stakeholder Engagement
Governance
Appendix
Selected Consolidated Financial
Information
Financial Information
• Non-Financial Information
Scope and Boundaries of
This Report
Cemex’s Materiality Assessment
Stakeholder Engagement
Governance
EU Taxonomy
GRI Content Index
International Sustainability
Standards Board (ISSB)
Sustainability Accounting
Standards Board Response (SASB)
Task Force on Climate-related
Financial Disclosure Response
(TCFD)
Terms We Use
Cautionary Statement Regarding
Forward-Looking Statements
Investor, Contact and Feedback
Information
Environmental And Quality Management
2022
2023
20241
Sites with a Cemex Environmental Management System
equivalent to ISO 14001 (%)
92
91
93
Cement
98
98
98
Ready-mix
92
91
93
Aggregates
90
87
88
Sites with ISO 14001 Certification (%)
Cement
82
83
80
Ready-mix
38
39
38
Aggregates
49
45
45
Sites with ISO 9001 Certification (%)
Cement
74
76
78
Ready-mix
44
48
48
Aggregates
36
34
36
Sites with ISO 50001 Certification (%)
Cement
-
-
32
Ready-mix
-
-
25
Aggregates
-
-
37
Environmental and other sustainability-related investment
(US$ million)
171
150
231
Environmental incidents (No.)
Category 1 (Major)
0
0
0
Category 2 (Moderate)
41
59
54
Category 3 (Minor)
514
471
362
Complaints
104
78
75
Significant Spills (No.)
0
0
0
Environmental fines above US$10,000 (No.)
3
6
0
Total Environmental fines (No.)
39
56
41
Environmental fines above US$10,000 (US$ million)
0.27
0.57
0.00
Total Environmental fines (US$ million)
0.34
0.61
0.02
Air Quality Management4
2022
2023
20241
Coverage (% of clinker production)
Clinker produced with continuous monitoring of major emissions
(PM, NOx, and SOx) (%)
99
99
100
Carbon Strategy and Energy
2022
2023
20241
Category 10: Processing of sold products (million ton)
0.2
0.1
0.1
Category 11: Use of sold products (million ton)23
3.9
3.6
2.0
Category 12: End-of-life treatment of sold products (million ton)
0.5
0.6
0.9
Category 13: Downstream leased assets (million ton)
-
-
-
Category 14: Franchises (million ton)
-
-
-
Category 15: Investments (million ton)
1.0
1.0
1.0
CO2 emissions intensity per US$ of revenue (Scope 1 + 2)
(kg CO2/US$)
2.5
2.1
1.8
Clinker Factor (cementitious) (%)
73.7
72.3
71.8
Clinker Factor (cement equivalent) (%)
74.3
73.2
72.8
Alternative raw material rate (%) 4,24
11.6
12.7
14.0
Specific heat consumption (MJ/ton clinker)4
4,063
4,110
4,113
Specific power consumption (kWh/ton cement)4
123
124
126
Fuel Consumption (TJ)
177,017 165,960 139,488
Power Consumption (GWh)
7,252
7,031
6,191
Total Energy Consumption (GWh)
56,424
53,131
44,937
Cement Fuel Mix (%)
Primary Fuels
65.0
63.2
63.3
Petroleum coke
37.1
41.6
36.6
Coal
18.8
12.1
12.2
Fuel oil + Diesel
3.0
2.0
2.1
Natural gas
6.1
7.5
12.4
Alternative Fuels
35.0
36.8
36.7
Fossil-based
23.0
25.0
21.8
Biomass
12.0
11.8
14.9
Power consumption from clean electricity in cement (%)25
33
36
34
Waste Management and Circularity
2022
2023
20241
Hazardous waste sent for disposal (thousand ton)
2.2
2.5
1.7
Non-hazardous waste sent for disposal (thousand ton)
397.8
824.0
846.3
Total waste sent for disposal (thousand ton)26
400.0
826.5
848.0
Total waste-derived sources repurposed (million ton) 27
23.2
24.7
27.1
Percentage of own operational waste that is recycled (%)26
90
79
82
214
Cemex 2024 Integrated Report
Contents
Our Company
Our Strategy
Financial Performance
Environmental Excellence
Stakeholder Engagement
Governance
Appendix
Selected Consolidated Financial
Information
Financial Information
• Non-Financial Information
Scope and Boundaries of
This Report
Cemex’s Materiality Assessment
Stakeholder Engagement
Governance
EU Taxonomy
GRI Content Index
International Sustainability
Standards Board (ISSB)
Sustainability Accounting
Standards Board Response (SASB)
Task Force on Climate-related
Financial Disclosure Response
(TCFD)
Terms We Use
Cautionary Statement Regarding
Forward-Looking Statements
Investor, Contact and Feedback
Information
Water Management 30
2022
2023
20241
Total water withdrawals by source (million m3)
58.7
52.5
50.1
Surface water
16.2
13.8
12.8
Groundwater
28.5
26.4
25.6
Municipal water
10.8
8.5
9.0
Harvested rainwater
0.5
0.9
0.6
Sea water
0.0
0.0
0.0
Quarry water used
1.6
1.4
0.3
External wastewater
1.1
1.5
1.6
Total water discharge by destination (million m3)
18.5
14.1
12.7
Surface water
14.7
10.4
8.7
Subsurface/well water
2.5
2.4
3.1
Off-site water treatment
0.9
0.8
0.6
Ocean
0.4
0.3
0.3
Beneficial/other
0.0
0.1
0.0
Total water consumption (million m3)
40.3
38.4
37.4
Cement31
15.1
13.6
11.8
Ready-mix
11.6
10.9
10.4
Aggregates
13.6
13.9
15.2
Total freshwater withdrawn in sites located in water-stressed
areas (million m3)
-
6.3
3.8
Total freshwater consumption in sites located in water-stressed
areas (million m3)
-
5.7
3.6
Specific water consumption
Cement (l/ton)
265
255
262
Ready-mix (l/m3)
232
233
235
Aggregates (l/ton)
123
135
140
Sites with water recycling systems (%)
82
87
89
Implementation of Water Action Plans in sites located in
water-stressed areas (%)
20
30
40
Reduction in specific freshwater withdrawals per ton of
cementitious from 2021 baseline (%)
1.6
11.5
9.9
Reduction in specific freshwater withdrawals per ton of
aggregates from 2021 baseline (%)
-
1.1
1.2
Reduction in specific freshwater withdrawals per m3 of concrete
from 2021 baseline (%)
5.1
11.4
16.9
Air Quality Management4
2022
2023
20241
Clinker produced with monitoring of major and minor emissions
(PM, NOx, SOx, Hg, Cd, TI, VOC, PCDD/F) (%)
97
93
93
Particulate matter (PM) emissions (%)
-
-
100
NOx emissions (%)
-
-
100
SOx emissions (%)
-
-
100
VOC emissions (%)
-
-
100
Hg emissions (%)
-
-
97
HM1 emissions (%)28,29
-
-
79
HM2 emissions (%)28,29
-
-
75
PCDD/F emissions (%)
-
-
94
Emissions
Absolute particulate matter (PM) emissions (ton/year)
1,814
1,686
992
Absolute NOx emissions (ton/year)
46,070
45,463
38,674
Absolute SOx emissions (ton/year)
11,456
7,272
9,262
Absolute VOC emissions (ton/year)
-
-
1,162
Absolute Hg emissions (kg/year)
-
-
482
Absolute HM1 emissions (kg/year)28
-
-
1,249
Absolute HM2 emissions (kg/year)28
-
-
12,144
Absolute PCDD/F emissions (mg/year)
-
-
813
Specific emissions (clinker)
Specific particulate matter (PM) emissions (g/ton clinker)
44
45
35
Specific NOx emissions (g/ton clinker)
1,183
1,217
1,268
Specific SOx emissions (g/ton clinker)
263
206
298
Specific VOC emissions (g/ton clinker)
-
-
35
Specific Hg emissions (mg/ton clinker)
-
-
17
Specific HM1 emissions (mg/ton clinker)28
-
-
39
Specific HM2 emissions (mg/ton clinker)28
-
-
375
Specific PCDD/F emissions (ng/ton clinker)
-
-
25
Reduction in particulate matter (PM) emissions per ton of clinker
from 2005 baseline (%)
85
85
88
Reduction in NOx emissions per ton of clinker from 2005 baseline
(%)
43
42
39
Reduction in SOx emissions per ton of clinker from 2005 baseline
(%)
60
68
54
215
Cemex 2024 Integrated Report
Contents
Our Company
Our Strategy
Financial Performance
Environmental Excellence
Stakeholder Engagement
Governance
Appendix
Selected Consolidated Financial
Information
Financial Information
• Non-Financial Information
Scope and Boundaries of
This Report
Cemex’s Materiality Assessment
Stakeholder Engagement
Governance
EU Taxonomy
GRI Content Index
International Sustainability
Standards Board (ISSB)
Sustainability Accounting
Standards Board Response (SASB)
Task Force on Climate-related
Financial Disclosure Response
(TCFD)
Terms We Use
Cautionary Statement Regarding
Forward-Looking Statements
Investor, Contact and Feedback
Information
Footnotes:
1
2024 figures do not include discontinued operations.
2
Reporting is aligned with the Global Cement and Concrete Association (GCCA) Sustainability Guidelines.
3
In 2024, LTI FR is 0.54 when considering the full-year performance level, including the periods of responsibility for discontinued
operations.
4
Cement only.
5
2022 and 2023 figures restated to reflect internal methodology update.
6
Starting 2024, the classification of employee positions has been updated to consider similar compensation benefits, roles and
responsibilities.
7
Measured every two years through our Workforce Experience survey (WE'x Survey).
8
External stakeholders graduated from programs focused on digital skills, industry-specific, and green jobs.
9
Cumulative figures. Includes families in programs such as Patrimonio Hoy, Construyo Contigo, Construapoyo, Yo Construyo, and
Centros Productivos de Autoempleo.
10
Focused on enhancing knowledge, skills, and readiness for disaster and emergency response. Includes external participants and
workforce members.
11
Focused on safe driving, mobility, accident prevention, and reducing road safety risks. Includes external participants and workforce
members.
12
Cumulative figures. In 2024, we achieved our 2030 target of 30 million community partners taking into consideration the
performance level for the full year, including the periods of responsibility for our discontinued operations.
13
Priority sites are defined by their size, investment roadmap, and proximity to urban areas. Includes all cement sites.
14
Calculation according to the GCCA Sustainability Guidelines for the monitoring and reporting of CO2 emissions from cement
manufacturing.
15
The figures for 2022 and 2023 are 28.2 and 25.6, respectively, without considering discontinued operations.
16
Marked based.
17
The figures for 2022 and 2023 are 2.5 and 2.3, respectively, without considering discontinued operations.
18
The figures for 2022 and 2023 are 564 and 539, respectively, without considering discontinued operations.
19
The figures for 2022 and 2023 are 50.4 and 48.7, respectively, without considering discontinued operations.
20
Figure includes emissions from Cemex-owned road transport fleet.
21
Scope 2 CO2 emissions for cement in 2024 are 2.0 million tons.
22
All categories of Scope 3 are included.
23
Reporting total category emissions. KPMG partially verifying Category 1 and 3, 86% and 55%, respectively; and data category 11 is
100% verified.
24
Calculation according to GCCA Sustainability Guidelines for co-processing fuels and raw materials in cement manufacturing.
25
Our definition of clean energy includes renewable energy sources such as solar, wind, hydro, geothermal, and biomass, together with
power generated from waste heat recovery systems.
26
Starting 2023, internal update on waste categorization criteria. 2023 and 2022 figures for "Percentage of own operational waste
that is recycled (%)" have been restated due to divestments and change in accounting criteria.
27
Includes non-recyclable waste consumed in our operations as alternative raw material and fuel, alternative aggregates, own recycled
material in our businesses and other waste managed by the company. 2023 and 2022 figures have been restated due to divestments
and change in accounting criteria.
28
HM1: Sum of cadmium (Cd) and thallium (Tl) and their compounds. HM2: Sum of antimony (Sb), arsenic (As), lead (Pb), chromium (Cr),
cobalt (Co), cooper (Cu), manganese (Mn), nickel (Ni) and vanadium (V) and their compounds.
29
USA values not included as operations monitor HM1 and HM2 as a surrogate of PM as per local requirements.
30
Classification according to GCCA Sustainability Guidelines for the monitoring and reporting of water in cement manufacturing.
31
The figures for 2022 and 2023 are 13.6 and 12.3 million m3, respectively, without considering discontinued operations.
32
High Biodiversity Value Areas may include international and national protected areas, important bird areas and key biodiversity
areas.
33
Starting in 2023, the number of active quarries in High Biodiversity Value Areas is based on the 2021 Proximity Study
34
Includes all cement quarries and quarries from other business located in near proximity to urban areas.
35
ETHOS reports include allegations and inquiries to Cemex Code of Ethics received through ETHOSline, committees, and other official
channels.
36
Excluding terminations of employees, contractors, and customers: 130 during 2022, 123 during 2023 and 114 during 2024.
37
“Target countries” refers to the countries where Cemex has operations that are considered medium and high-risk countries with
regards to corruption and money laundering, as per internal analyses. “Countries where Cemex has operations” refers to countries
where Cemex operates assets such as cement and grinding plants, concrete plants, mortar plants, aggregates quarries, or where
Cemex has maritime port operations and operations related to our urbanization solutions.
Biodiversity Management
2022
2023
20241
Active quarries with rehabilitation plans (%)
100
100
100
Active quarries located within a High Biodiversity Value Area (No.) 32
40
66
51
Active quarries located within a High Biodiversity Value Area
where a Biodiversity Action Plan has been implemented (%)33
98
72
84
Active quarries with habitat mapping (%)
-
15
58
Active quarries with a third party certification (%)34
70
62
84
Customers and Suppliers
2022
2023
20241
Purchases sourced from locally-based suppliers (%)
90
90
90
Sustainability assessment executed by an independent party for
our critical suppliers (% spend evaluated)
68
77
82
Countries that conduct regular customer satisfaction surveys (%)
100
100
100
Net Promoter Score (NPS)
66
70
74
Ethics and Compliance
2022
2023
20241
Number of ETHOS reports received (No.)35
786
1,046
1,285
ETHOS reports closed during the year that were closed in less than
60 days (%)35
77
78
71
Number of ETHOS allegations investigated and closed (No.)
713
939
997
Disciplinary actions as a result of ETHOS investigations(No.)36
278
321
251
Internal legal audits conducted (No.)
347
473
631
Hours dedicated to internal legal trainings (No.)
8,851
20,406
19,746
Target countries that participated in the Global Compliance
Program (antitrust, anti-bribery, among others) (%) 37
100
100
100
Countries with local mechanisms to promote employee awareness
of procedures to identify and report incidences of internal fraud,
kickbacks, among others (%)
100
100
100
Implementation of Ethics and Compliance Continuous
Improvement Program (%)
89
95
100
216
Cemex 2024 Integrated Report
Contents
Our Company
Our Strategy
Financial Performance
Environmental Excellence
Stakeholder Engagement
Governance
Appendix
Selected Consolidated Financial
Information
Financial Information
• Non-Financial Information
Scope and Boundaries of
This Report
Cemex’s Materiality Assessment
Stakeholder Engagement
Governance
EU Taxonomy
GRI Content Index
International Sustainability
Standards Board (ISSB)
Sustainability Accounting
Standards Board Response (SASB)
Task Force on Climate-related
Financial Disclosure Response
(TCFD)
Terms We Use
Cautionary Statement Regarding
Forward-Looking Statements
Investor, Contact and Feedback
Information
Direct Economic Impacts
2022
2023
2024
Customers: Net sales (1)
14,706
16,554
16,200
Suppliers: Cost of sales and operating expenses (2)
9,885
10,598
10,199
Employees and their families: Wages and benefits (3)
2,387
2,807
2,923
Investments: CAPEX (4) plus working capital
1,747
1,331
1,226
Creditors: Net financial expense
528
584
593
Government: Taxes
146
501
872
Communities: Donations (5)
Communities donations as % of pre-tax income
0.23%
0.15%
0.10%
Shareholders: Dividends (6)
0
0
90
Others
-6
15
63
Free cash flow from discontinued operations (7)
-60
-71
-54
Consolidated free cash flow
78
788
378
Net income (loss) before taxes & non controlling interest net income (loss)
570
1,323
980
(1) Excludes sales of assets
(2) Excludes depreciation and amortization
(3) Wages and benefits include non-operational and operational employees
(4) Capital expenditures for maintenance and expansion
(5) Donations as percentage of pre-tax income
(6) Dividends paid in cash, this effect doesn’t affect the Consolidated Free Cash Flow, it is presented below FCF
(7) 2022 free cash flow from Costa Rica, El Salvador, Neoris, Guatemala,Philippines and Dominican Republic
2023 free cash flow from Guatemala, Philippines and Dominican Republic
2024 free cash flow from Guatemala, Philippines and Dominican Republic
217
Cemex 2024 Integrated Report
Contents
Our Company
Our Strategy
Financial Performance
Environmental Excellence
Stakeholder Engagement
Governance
Appendix
Selected Consolidated Financial
Information
Financial Information
• Non-Financial Information
Scope and Boundaries of
This Report
Cemex’s Materiality Assessment
Stakeholder Engagement
Governance
EU Taxonomy
GRI Content Index
International Sustainability
Standards Board (ISSB)
Sustainability Accounting
Standards Board Response (SASB)
Task Force on Climate-related
Financial Disclosure Response
(TCFD)
Terms We Use
Cautionary Statement Regarding
Forward-Looking Statements
Investor, Contact and Feedback
Information
Independent Limited Assurance Report on Key Indicators of Sustainability Performance
On a yearly basis, an external independent auditor carries out a limited assurance
verification over our main sustainability KPIs ensuring that all our relevant operations are
verified at least once every three years.
218
Cemex 2024 Integrated Report
Contents
Our Company
Our Strategy
Financial Performance
Environmental Excellence
Stakeholder Engagement
Governance
Appendix
Selected Consolidated Financial
Information
Financial Information
• Non-Financial Information
Scope and Boundaries of
This Report
Cemex’s Materiality Assessment
Stakeholder Engagement
Governance
EU Taxonomy
GRI Content Index
International Sustainability
Standards Board (ISSB)
Sustainability Accounting
Standards Board Response (SASB)
Task Force on Climate-related
Financial Disclosure Response
(TCFD)
Terms We Use
Cautionary Statement Regarding
Forward-Looking Statements
Investor, Contact and Feedback
Information
219
Cemex 2024 Integrated Report
Contents
Our Company
Our Strategy
Financial Performance
Environmental Excellence
Stakeholder Engagement
Governance
Appendix
Selected Consolidated Financial
Information
Financial Information
• Non-Financial Information
Scope and Boundaries of
This Report
Cemex’s Materiality Assessment
Stakeholder Engagement
Governance
EU Taxonomy
GRI Content Index
International Sustainability
Standards Board (ISSB)
Sustainability Accounting
Standards Board Response (SASB)
Task Force on Climate-related
Financial Disclosure Response
(TCFD)
Terms We Use
Cautionary Statement Regarding
Forward-Looking Statements
Investor, Contact and Feedback
Information
220 Cemex 2024 Integrated Report
Contents
Our Company
Our Strategy
Financial Performance
Environmental Excellence
Stakeholder Engagement
Governance
Appendix
Selected Consolidated Financial
Information
Financial Information
Non-Financial Information
• Scope and Boundaries of
This Report
Cemex’s Materiality Assessment
Stakeholder Engagement
Governance
EU Taxonomy
GRI Content Index
International Sustainability
Standards Board (ISSB)
Sustainability Accounting
Standards Board Response (SASB)
Task Force on Climate-related
Financial Disclosure Response
(TCFD)
Terms We Use
Cautionary Statement Regarding
Forward-Looking Statements
Investor, Contact and Feedback
Information
Scope And Boundaries
of This Report
Cemex, S.A.B. de C.V. is incorporated as a publicly traded variable stock corporation
(sociedad anónima bursátil de capital variable) organized under the laws of Mexico. Except
as the context otherwise may require, references in this integrated report to “Cemex”, “the
company”, “we”, “us”, or “our” refer to Cemex, S.A.B. de C.V. and its consolidated entities.
Reporting Scope
Cemex began publishing Environmental, Health, and Safety (EHS) reports in 1996 and
annually published its Sustainable Development Reports since 2003, covering a broad range
of issues related to economic, environmental, social, and governance performance. Since
2016, our Integrated Reports have intended to provide a holistic analysis of the company’s
strategic vision, performance, governance, and value creation, while fostering a more in-
depth understanding of the financial and non-financial key performance indicators that the
company uses to manage its business over the short, medium, and long term.
Boundary and Reporting Period
In preparation for this report, we consolidated information from all of our operations in
Mexico, the United States, the Europe, Middle East, Africa and Asia region, and the South
America, Central America and the Caribbean region. Unless otherwise indicated, the
information provided in this report is for the company as a whole and includes operations
where we have financial and operative control. When a plant is sold, its information is no
longer included in our report or considered in our targets. If any data sets from previous
years have been restated, we have marked these cases. For 2024, the consolidated figures
exclude the discontinued operations in the Philippines, Guatemala, and the Dominican
Republic, unless otherwise indicated. Similarly, unless stated otherwise, all prior-year
figures for key performance indicators reflect the data published in the 2022 and 2023
reporting years.
This report covers our global cement, ready-mix concrete, aggregates, clinker and other
construction materials and urbanization solutions business lines, presenting our financial
and non-financial performance, progress, achievements, and challenges during the 2024
calendar year, which is also the company’s fiscal year. Our materiality assessment guided
our reporting process, and the issues included in this report particularly match those
that Cemex and our stakeholders found of the highest importance, as reflected in our
Materiality Matrix.
Unless something else is explicitly indicated, all monetary amounts are reported in U.S.
dollars. All references to “tons” are to metric tons.
The information in our 2024 Integrated Report came from several sources, including
internal management systems and performance databases, as well as annual surveys
applied across all of our operations.
We continually aim to improve the transparency and completeness of each report we
produce while streamlining our processes and how we provide information.
To this end, we include a limited assurance statement from KPMG. This independent
organization verified the data and calculation process for our annual indicators associated
with CO2 and other emissions, health and safety, circular economy, biodiversity, water, and
environmental and social incidents.
Data Measurement Techniques
We employ the following protocols and techniques for measuring the sustainability key
performance indicators (KPI) that we report:
CO2 emissions: Cemex reports absolute and specific CO2 emissions following the Global
Cement and Concrete Association (GCCA) Sustainability Framework Guidelines and
the GCCA Sustainability Guidelines for the monitoring and reporting of CO2 emissions
from cement manufacturing (October 2019), based on the CEN Standard EN 19694-
3 (Stationary source emissions – Determination of Greenhouse Gas (GHG) emissions in
energy-intensive industries – Part 3: Cement Industry). The measurement is based on the
mass balance methodology, fully described in the CEN Standard on CO2 emission from
the cement industry EN-19694-3 and applied through the spreadsheet of the Cement
CO2 Protocol (previously known as WBCSD CSI Cement CO2 and Energy Protocol v. 3.1).
It considers direct emissions occurring from sources that are owned or controlled by the
company, excluding those from the combustion of biomass that are reported separately
(Scope 1) and indirect emissions from the generation of purchased electricity consumed in
the company’s owned or controlled equipment (Scope 2) and from the clinker purchased
(Scope 3). For countries covered by the European Union Emission Trading System (EU ETS),
CO2 data considers the information validated by an independent verifier in accordance
with the applicable Accreditation and Verification Regulation.
221
Cemex 2024 Integrated Report
Contents
Our Company
Our Strategy
Financial Performance
Environmental Excellence
Stakeholder Engagement
Governance
Appendix
Selected Consolidated Financial
Information
Financial Information
Non-Financial Information
• Scope and Boundaries of
This Report
Cemex’s Materiality Assessment
Stakeholder Engagement
Governance
EU Taxonomy
GRI Content Index
International Sustainability
Standards Board (ISSB)
Sustainability Accounting
Standards Board Response (SASB)
Task Force on Climate-related
Financial Disclosure Response
(TCFD)
Terms We Use
Cautionary Statement Regarding
Forward-Looking Statements
Investor, Contact and Feedback
Information
Particulate Matter, NOx, and SOx emissions: Absolute and specific figures are
calculated based on kiln measurements taken from Continuous Emissions Monitoring
Systems (CEMs) (in those sites where kilns are equipped with such technology) or spot
analysis. These methods fully comply with GCCA Sustainability Guidelines for the
monitoring and reporting of emissions from cement manufacturing (October 2019).
All information is reported to Cemex databases, processed, calculated, and validated
to provide a final group value. The values are calculated in Standard for 0°C, 1
atmosphere, and 10% Oxygen (O2) content at the measuring point.
Energy: Fuel consumption indicators are reported to internal Cemex databases in
which “conventional,” “alternative,” and “biomass fuels” are classified according to
the Cement CO2 Protocol spreadsheet. Heat values are obtained from on-site analysis
(where applicable), provided by suppliers or standards from recognized sources.
Clinker factor and alternative fuels: All material consumption is reported to internal
Cemex databases in which “alternative materials” are defined following the standards
from the GCCA Sustainability Guidelines for co-processing fuels and raw materials in
cement manufacturing (October 2019). The “clinker/cement factor” is calculated using
the Basic Parameters set out in the GCCA Sustainability Framework Guidelines and
according to the GCCA Sustainability Guidelines for the monitoring and reporting of
CO2 emissions from cement manufacturing, procedures indicated in the Cement CO2
Protocol spreadsheet with information obtained from the databases.
Health and safety: Intelex, which feeds an internal database, collects all related health
and safety information from each site and automatically provides the appropriate
information to calculate the indicators. The database is configured using the GCCA
definitions. Health and safety indicators are calculated according to the GCCA
Sustainability Guidelines for the monitoring and reporting of safety in cement and
concrete manufacturing, March 2023 version.
International Sustainability Standards Board (ISSB)
Cemex is proudly part of the IFRS Champions Program and supports the ISSB in its aim
to develop consistent, comparable, and reliable global sustainability standards. This
report partially applies the IFRS Sustainability Disclosure Standards IFRS S1 and IFRS
S2 as issued by the International Sustainability Standards Board (ISSB). Cemex plans to
achieve full compliance with IFRS Sustainability Disclosure Standards when sufficient
sustainability data becomes available, and after it has further refined its control systems
and processes for sustainability disclosure.
Sustainability Accounting Standard Board (SASB)
In 2019, we started reporting aligned to the Sustainability Accounting Standard Board
(SASB) industry-specific requirements for the Construction Material Standard. Our
SASB Index has been updated to the SASB Standards amended in December 2024 and
is located on pages 250-251 of this report.
GRI Sustainability Reporting Standards
To enhance our sustainability communication with our stakeholders and comply with
internationally agreed disclosures and metrics, Cemex uses the GRI Sustainability
Reporting Standards to prepare its Sustainable Development Reports. From 2008 to
2013, we met an application level of A+ using GRI-G3. From 2014 to 2016, we applied
the GRI-G4 Guidelines. In 2017 we migrated to the GRI Standards, and in 2024 we are
reporting under GRI Universal Standards 2021. Our 2024 GRI Content Index is located
on pages 235-247 of this report.
United Nations Global Compact – Communication on Progress
This report, together with the UN Global Compact Participant Dashboard, constitutes
our Communication on Progress (CoP) toward the commitments of the UN Global
Compact (UNGC). As a participant in the UNGC, we work to align our company’s
operations and strategies with its ten principles. As described within this report, we
are also committed to helping the world meet the targets of the Paris Agreement and
contribute to the achievement of the UN SDGs.
222 Cemex 2024 Integrated Report
Contents
Our Company
Our Strategy
Financial Performance
Environmental Excellence
Stakeholder Engagement
Governance
Appendix
Selected Consolidated Financial
Information
Financial Information
Non-Financial Information
Scope and Boundaries of
This Report
• Cemex’s Materiality Assessment
Stakeholder Engagement
Governance
EU Taxonomy
GRI Content Index
International Sustainability
Standards Board (ISSB)
Sustainability Accounting
Standards Board Response (SASB)
Task Force on Climate-related
Financial Disclosure Response
(TCFD)
Terms We Use
Cautionary Statement Regarding
Forward-Looking Statements
Investor, Contact and Feedback
Information
Cemex’s Materiality Assessment
Our stakeholders include our workforce, customers, investors,
suppliers, communities, and civil society.
Our company’s Materiality Assessment brings together financial and non-financial topics
that matter most to our stakeholders and our business. This assessment was conducted
from a double materiality perspective as we seek to begin aligning with the EU’s
Corporate Sustainability Reporting Directive (CSRD) and it is also aligned with the GRI
Sustainability Reporting Standards.
In 2023, we carried out a full update of our materiality assessment considering internal and
external stakeholders. Through an online survey, respondents ranked the material topics
based on the potential impact on society and the environment; more than 2,500 responses
were received. In addition, we carried out industry-level research and reviewed economic,
environmental, and social trends and challenges, aligning the material topics to our
Enterprise Risk Management agenda. In 2024, we assessed and updated our materiality
matrix to incorporate a double materiality perspective based on interviews with internal
experts from across our global operations.
Material topics are ranked on a scale from 1 to 5, where 1 represents low impact and 5
represents the highest impact. They are mapped according to the impact on stakeholders
and the environment versus the financial impact on Cemex.
We will continue to monitor the material topics and their potential impacts on our
stakeholders and our company’s financial and sustainability performance, identifying
opportunities to act on the changing social, environmental, and economic concerns.
Identification
of relevant assessment topics and
alignment of topics to our Global
Risk Management Agenda.
Prioritization
of the topics by gathering
stakeholder groups’ opinions and
concerns. Alignment of topics
to the company’s financial and
sustainability performance to map
the increasing importance of the
topics to Cemex.
Definition
of stakeholders to participate
in the analysis.
Management
Results Review
maintaining consistency with
our business strategy.
Our Materiality Assessment Process
223 Cemex 2024 Integrated Report
Contents
Our Company
Our Strategy
Financial Performance
Environmental Excellence
Stakeholder Engagement
Governance
Appendix
Selected Consolidated Financial
Information
Financial Information
Non-Financial Information
Scope and Boundaries of
This Report
• Cemex’s Materiality Assessment
Stakeholder Engagement
Governance
EU Taxonomy
GRI Content Index
International Sustainability
Standards Board (ISSB)
Sustainability Accounting
Standards Board Response (SASB)
Task Force on Climate-related
Financial Disclosure Response
(TCFD)
Terms We Use
Cautionary Statement Regarding
Forward-Looking Statements
Investor, Contact and Feedback
Information
Our Materiality Matrix
Environmental,
Social,
Governance
1
Health and safety
2
Climate change and natural disasters
3
Customer relationships
4
Business conduct and compliance
5
Talent attraction, retention, and training
6
Employee well-being
7
Air emissions
8
Water preservation
9
Alternative fuels and raw materials
10 Electricity costs, efficiency, and sourcing
11
Circular economy and waste management
12
Sustainable products and solutions
13
Return on capital employed
14
Human Rights
15
Diversity, equity, and inclusion
16
Biodiversity and ecosystem conservation
and rehabilitation
17
Board composition and management
18
Resilient buildings and infrastructures
19
Innovation, technology, and cybersecurity
20 Community engagement and development
21
Responsible sourcing
22 Sustainable corporate finance
5
4
3
2
1
0
0
1
2
3
4
5
Financial Impact on Cemex
Impact on Stakeholders and Environment
1
2
3
6
5
8
10
15
21
22
12
11
16
13
14
17
18
20
19
7
9
4
1 to 5 scale, increasing impact
224 Cemex 2024 Integrated Report
Contents
Our Company
Our Strategy
Financial Performance
Environmental Excellence
Stakeholder Engagement
Governance
Appendix
Selected Consolidated Financial
Information
Financial Information
Non-Financial Information
Scope and Boundaries of
This Report
Cemex’s Materiality Assessment
• Stakeholder Engagement
Governance
EU Taxonomy
GRI Content Index
International Sustainability
Standards Board (ISSB)
Sustainability Accounting
Standards Board Response (SASB)
Task Force on Climate-related
Financial Disclosure Response
(TCFD)
Terms We Use
Cautionary Statement Regarding
Forward-Looking Statements
Investor, Contact and Feedback
Information
How We Engage With Our Stakeholders
We aim to conduct stakeholder relations with honesty, respect, and integrity. The framework
for our stakeholder engagement process is determined mainly by our Code of Ethics, Business
Conduct, Public Affairs, and Stakeholder Engagement Policy.
Our process reflects key topics and priorities raised by our stakeholders in our Materiality
Assessment, and we work through various communication channels to engage with our
stakeholders and promote dialogue and collaboration.
Stakeholder
Workforce
Customers
Investors
Objective
Our employees are a key part of our competitive
advantage and the reason for our success. We continually
seek to provide them with opportunities for growth and
development, as well as a safe, healthy, diverse, and
inclusive work environment.
By understanding our customers’ needs and challenges,
we aim to place them at the center of everything we do
and become their partner of choice.
We have a robust investor engagement strategy
to foster a clear understanding of our company’s
performance, strategy, and risks.
Key Collaboration
Topics
• Company priorities and challenges
• Health and safety
• Business ethics
• Employee well-being, experience, and engagement
• Diversity and inclusion
• Training, development, and career path
• Customer experience and engagement
• Industry needs and challenges
• Quality products, services, and solutions
• Sustainability management practices
• Our products’ sustainable attributes
• Company’s financial performance
• Return on capital employed
• Pricing integrity and antitrust compliance
• Business ethics and legal compliance
• ESG disclosure and performance
• Risks and opportunities
Engagement
Channels and
Frequency
• Leader email messages and videos
• Ethics and compliance campaigns
• Employee experience surveys
• Global and local newsletters
• HR teams and HR process platforms
• Open dialogues and meetings with leaders, including
town halls with CEO and Executive Committee Members
• ETHOSline 24/7 reporting line
• Sales representatives’ ongoing relationship
management
• Cemex Go digital platform 24/7
• Regular commercial events
• Customer satisfaction surveys
• Satisfaction surveys, service centers, and helplines
• ETHOSline 24/7 reporting line
• Regular meetings, webcasts, and conference calls
• Quarterly financial updates and guidance
• Annual integrated and 20-F reports, and
mandatory filings
• Ongoing website updates and press releases
• Cemex Day investor event
• Company position papers
Outcomes
• Understanding of our employees’ needs
• Talent management strategy
• Ethics case reports for investigation
• Learning strategy
• Positive health and safety culture in the workplace
• Safety workplace environment
• Diversity and Inclusion Policy, committees, and
initiatives, including participation in external programs
• Speaking-up culture
• Engaged workforce
• Human Rights Due Diligence Approach including
our Human Rights Self Assessment
• Customer centricity strategy
• A clear understanding of our customers’ needs
and concerns
• Net promoter score (NPS)
• Digitalized solutions
• Understanding of financial position, performance,
business perspectives, and risks
• Strengthening of Cemex’s ESG practices and metrics
• Enhancement of reporting quality and transparency
225 Cemex 2024 Integrated Report
Contents
Our Company
Our Strategy
Financial Performance
Environmental Excellence
Stakeholder Engagement
Governance
Appendix
Selected Consolidated Financial
Information
Financial Information
Non-Financial Information
Scope and Boundaries of
This Report
Cemex’s Materiality Assessment
• Stakeholder Engagement
Governance
EU Taxonomy
GRI Content Index
International Sustainability
Standards Board (ISSB)
Sustainability Accounting
Standards Board Response (SASB)
Task Force on Climate-related
Financial Disclosure Response
(TCFD)
Terms We Use
Cautionary Statement Regarding
Forward-Looking Statements
Investor, Contact and Feedback
Information
Stakeholder
Suppliers
Communities
Civil Society
Objective
We develop a strong relationship across
our network of suppliers, aiming to ensure
compliance with our Code of Ethics and
Business Conduct and our Code of Conduct
When Doing Business With Us.
Our regular, formal dialogues with our
neighboring communities have proven key to
building mutual trust. By understanding their
expectations, we can review progress and
work together toward achieving agreed plans.
We actively engage and cooperate with governments and policy makers; global,
national, and regional business associations; NGOs; and academic institutions.
This collaboration helps us to participate in industry regulations policy discussions,
foster partnerships to promote our core businesses, align with entities sharing our
vision of building a better future, and support scientific research to enhance the
environmental, social, and economic impacts of our products.
Key Collaboration
Topics
• Business ethics, legal compliance, and
respect for human rights
• Quality of products and services
• Supply chain reliability and efficiency
• Health and safety
• Sustainability management practices
• Health and safety
• Education and capability development
• Community infrastructure programs
and housing
• Community employability skills and
well-being
• Respect for human rights
• Local employment opportunities
• Health and safety
• Business ethics, legal compliance, and
respect for human rights
• Environmental standards, climate
change, and emissions
• Energy costs, efficiency, and sourcing
• Circular economy and waste materials
• Sustainable cities and communities,
community infrastructure programs,
and housing
• Sustainability principles and challenges
• Our products’ sustainable attributes
• Best practice sharing across
the industry
• Sustainability performance
and disclosure
• Energy and climate change
solutions
• Natural resources conservation
• Innovation and business
development
• Public policy and advocacy
Engagement
Channels and
Frequency
• Daily interactions
• Ongoing training and capacity-building
programs
• Health and safety and sustainability
verification platforms
• Annual Smart Innovation process
• ETHOSline 24/7 reporting line
• Ongoing dialogues with communities
• Annual open house days at operating sites
• Ongoing educational programs and training
• Community infrastructure, volunteering,
and social investment initiatives
• Co-creation of inclusive business programs
• Community engagement plans
• ETHOSline 24/7 reporting line
• Company position papers
• Ongoing public policy discussions,
working groups, and research studies
• Long-term partnerships
• Working groups
• Periodic plant visits, meetings
• Events and conferences
• Annual integrated and 20-F reports
• Collaborative research portfolios,
technical papers, and advisory
services
• Subject matter expert participation
in company events
• Best practices and methodologies
playbooks
• ETHOSline 24/7 reporting line
Outcomes
• Supplier sustainability assessment for
critical suppliers
• Promotion of local suppliers
• Third-party due diligence process
• Contractor health and safety verifications
in accordance with our internal health
and safety policies and controls
• Improvement to community infrastructure
and well-being
• Increased participation of women in the
local economy
• Reduced figures of not-in-employment-or-
education youth
• Economic growth in the community
• Volunteering program
• Successful adaptations to new local,
national, and regional regulations
• Compliance with applicable laws
• Creation of joint initiatives that
require a multidisciplinary approach,
such as ARISE
• Coordinated initiatives, statements,
whitepapers, and communications
campaigns.
• Industry best practice sharing
• Strengthened positioning of
cement and concrete as sustainable
building materials
• Incremental quality and
transparency in company reporting
• Strategic partnerships built with
business associations, NGOs, and
top universities
• Awareness of global industry trends
• New talent attraction for company
• Risk and opportunities assessment
226 Cemex 2024 Integrated Report
Contents
Our Company
Our Strategy
Financial Performance
Environmental Excellence
Stakeholder Engagement
Governance
Appendix
Selected Consolidated Financial
Information
Financial Information
Non-Financial Information
Scope and Boundaries of
This Report
Cemex’s Materiality Assessment
Stakeholder Engagement
• Governance
EU Taxonomy
GRI Content Index
International Sustainability
Standards Board (ISSB)
Sustainability Accounting
Standards Board Response (SASB)
Task Force on Climate-related
Financial Disclosure Response
(TCFD)
Terms We Use
Cautionary Statement Regarding
Forward-Looking Statements
Investor, Contact and Feedback
Information
Governance
Cemex’s Board of Directors Skills Matrix
Area
Skill
Rogelio Zambrano Lozano
Fernando A. González Olivieri
Armando J. García Segovia
Rodolfo García Muriel
Francisco Javier Fernández Carbajal
David Martínez Guzmán
Armando Garza Sada
Everardo Elizondo Almaguer
Marcelo Zambrano Lozano
Ramiro Gerardo Villarreal Morales
Gabriel Jaramillo Sanint
Isabel María Aguilera Navarro
María de Lourdes Melgar Palacios
General Skills
Public Management and
Legal Compliance
Administration
•
•
•
•
•
•
•
•
•
•
Global Affairs
•
•
•
•
•
•
Public Affairs
•
•
•
•
•
•
Regulatory and Legal Matters / Compliance
•
•
•
•
Public Office / Public Servant
•
•
Corporate Risk Management Operation and Supervision
•
•
•
•
•
•
•
•
Industry and Business Strategy
Brand Development / Branding and Marketing
•
•
•
Business Strategy
•
•
•
•
•
•
•
•
•
•
•
•
•
Entrepreneurship
•
•
•
•
•
Other Board of Directors Experience
•
•
•
•
•
•
•
•
•
•
•
•
•
Mergers and Acquisitions
•
•
•
•
•
•
•
•
•
•
Research and Development
•
•
•
Investor Relations
•
•
•
•
•
Human Resources / Labor Matters / Executive Compensation Structures and Transparency
•
•
•
•
•
•
•
•
Sales
•
•
•
•
•
Construction and Building Materials
•
•
•
•
•
•
Operations and Logistics
Real Estate
•
•
•
•
•
Procurement / Supply Chain
•
•
•
Supply System
•
•
Logistics
•
•
Manufacturing
•
•
•
•
•
•
•
Energy
•
•
•
•
Finance and Accounting
Economics and Finance
•
•
•
•
•
•
•
•
•
•
•
•
•
Accounting and Auditing
•
•
•
•
•
•
•
Communication and Health
Media and Communication
•
Health and Safety
•
•
•
•
•
•
Healthcare
Information Technology and Processes
•
Telecommunications
•
ESG-related Skills
Experience and General Practices
in ESG Matters
Knowledge or certifications in ESG Matters
•
•
•
•
•
•
•
•
ESG Matters-focused training and education
•
•
•
•
•
•
Experience and best practices in ESG Matters specific to any industry other than construction building materials
•
•
•
•
•
Experience and best practices in ESG Matters in the construction building materials industry.
•
•
•
•
•
•
•
•
ESG Matters-related legal and regulatory frameworks and trends and compliance
•
•
•
•
•
•
•
Environmental
Climate change risk assessment
•
•
•
•
•
Climate change mitigation and adaptation strategies
•
•
•
•
•
•
•
Climate change advocacy and initiatives and partnerships
•
•
•
•
CO2 emissions reduction targets and programs
•
•
•
•
•
•
•
Green technologies renewable energy solutions and/or circular economy
•
•
•
•
•
•
•
Social
Human rights in supply chain due diligence
•
•
Diversity equity and inclusion
•
•
•
•
•
•
•
•
General philanthropic efforts or charitable work
•
•
•
•
•
•
Community engagement and social impact projects
•
•
•
•
Governance
Cybersecurity and/or risk management threats
•
•
•
•
•
Ethics and Compliance
•
•
•
•
•
•
•
•
Sustainable and green finance
•
•
•
•
•
Corporate governance and board roles
•
•
•
•
•
•
•
•
•
•
•
Data privacy
•
•
•
•
227 Cemex 2024 Integrated Report
Contents
Our Company
Our Strategy
Financial Performance
Environmental Excellence
Stakeholder Engagement
Governance
Appendix
Selected Consolidated Financial
Information
Financial Information
Non-Financial Information
Scope and Boundaries of
This Report
Cemex’s Materiality Assessment
Stakeholder Engagement
• Governance
EU Taxonomy
GRI Content Index
International Sustainability
Standards Board (ISSB)
Sustainability Accounting
Standards Board Response (SASB)
Task Force on Climate-related
Financial Disclosure Response
(TCFD)
Terms We Use
Cautionary Statement Regarding
Forward-Looking Statements
Investor, Contact and Feedback
Information
Board of Directors’ Skill Set Connectivity in Managing Risk Factors
1. Uncertain Economic Conditions
Relation to the Board of Directors’ Skillset: Economic
uncertainty poses a significant risk to the Company’s
business, financial condition, liquidity, and results
of operations. Our Board of Directors’ expertise in
Global Affairs, Public Affairs, Economics and Finance,
Business Strategy, Procurement /Supply Chain, Energy,
Manufacturing, Logistics and Sales allows them to address
these challenges, formulate strategies, and make decisions
that mitigate the impact of uncertain economic conditions
on our operations and business.
2. Changes in Competitive Landscape
Relation to the Board of Directors’ Skillset: Operating
in an evolving and highly competitive landscape poses
a risk to the Company’s business, financial condition,
liquidity, and results of operations. Our Board of
Directors’ members have expertise in Business Strategy,
Mergers and Acquisitions, Entrepreneurship, Research
and Development, Construction and Business Materials,
Supply System, Procurement / Supply Chain, Logistics,
and Energy, which enables them to identify and adapt
to potential changes in the competitive landscape and
develop strategies to maintain Cemex’s competitive
advantage within the building and construction materials
industry.
3. Political Uncertainty
Relation to the Board of Directors’ Skillset: Political
uncertainty, incoming new governments and elections,
and social instability may affect various countries and
regions where the Company operates. Our Board of
Directors’ members can adapt to changes in economic,
political, and social conditions in the countries where we
operate based on their expertise in Administration, Global
Affairs, Public Affairs, Economics and Finance, Regulatory
and Legal Matters, and Ethics and Compliance. This
ensures the Company is equipped to manage political
risks and adapt to social changes that may arise in the
countries where we operate.
4. Unexpected Escalation of a Geopolitical Conflict
Relation to the Board of Directors’ Skillset: As a global
company, geopolitical tensions pose a risk to the Company’s
business, financial condition, liquidity, and results of
operations. Our Board of Directors’ members’ expertise
in Global Affairs, Public Affairs, Economics and Finance,
Corporate Risk Management Operation and Supervision,
and Procurement / Supply Chain allows them to analyze and
respond effectively to the impacts of geopolitical conflicts
on the Company, including our operations.
5. Difficulties in Materializing Benefits of Assets
Divestments and/or Investment Strategies
Relation to the Board of Directors’ Skillset: The suc-
cessful execution of asset divestments, acquisitions and
investments requires strategic decision-making, a deep
understanding of the market, and risk management
capabilities. Our Board of Director’s expertise in Business
Strategy, Mergers and Acquisitions, Entrepreneurship,
Research and Development, Construction and Building
Materials, Procurement / Supply Chain, Logistics,
Energy, and Corporate Risk Management Operation
and Supervision enables the Company to effectively
navigate challenges related to materializing the benefits
of divestments and executing successful investment and
acquisition strategies, as well as procuring that stake-
holders are appropriately informed and aligned with
the Company’s strategic goals during these processes.
6. Climate-related Risks
Relation to the Board of Directors’ Skillset: Climate-
related risks, such as policy, technology, market, and
reputation transition risks, as well as acute or chronic
physical risks can all materialize and have adverse
impacts on our business, financial condition, liquidity, and
results of operations. Our Board of Directors’ members
are prepared with a set of skills that include general
ESG-Related Legal and Regulatory Frameworks, Trends,
and Compliance to Climate Change Risk Assessment,
Climate Change Mitigation and Adaptation Strategies,
CO2 Emissions Reduction Targets and Programs, Climate
Change Advocacy Initiatives and Partnerships, and
Green Technologies Renewable Energy Solutions and
Circular Economy. This skillset provides Cemex with
helpful insight to address these risks associated with
climate change, environmental challenges, and pressure
from our stakeholders to continue evolving towards
becoming a more sustainable company and be on track
with Cemex’s emissions reduction targets.
7. Regulatory and Compliance Requirements,
Including Sustainability Regulations
Relation to the Board of Directors’ Skillset: Cemex is
subject to the laws and regulations of different jurisdictions
across the countries in which it operates. Members of our
Board of Directors garner skills in areas such as Public
Affairs, Investor Relations, Human Resources, Labor
Matters and Executive Compensation Structures and
Transparency, Energy, Telecommunications, Human Rights
in Supply Chain Due Diligence, Cybersecurity and/or Risk
Management Threats, Ethics and Compliance, Sustainable
and Green Finance, Data Privacy, and particularly ESG
Matters-Related Legal and Regulatory Frameworks
and Trends and Compliance and Regulatory and Legal
Matters, all of which supports Cemex in striving to remain
compliant with applicable laws and regulations, as well as
to comply with new legal requirements.
8. Financial Risks
Relation to the Board of Directors’ Skillset: The current
financial environment poses risk to our business, financial
condition, liquidity, and results of operations. Our Board
of Directors’ expertise in Administration, Global Affairs,
Public Affairs, Corporate Risk Management Operation and
Supervision, Business Strategy, Investor Relations, Sales,
Economics and Finance, and Sustainable and Green Finance
enables the Board of Directors to analyze and address
financial risks that could impact the Company’s liquidity
and financial performance, as well as allow the Company
to manage global and domestic financial risks.
228 Cemex 2024 Integrated Report
Contents
Our Company
Our Strategy
Financial Performance
Environmental Excellence
Stakeholder Engagement
Governance
Appendix
Selected Consolidated Financial
Information
Financial Information
Non-Financial Information
Scope and Boundaries of
This Report
Cemex’s Materiality Assessment
Stakeholder Engagement
• Governance
EU Taxonomy
GRI Content Index
International Sustainability
Standards Board (ISSB)
Sustainability Accounting
Standards Board Response (SASB)
Task Force on Climate-related
Financial Disclosure Response
(TCFD)
Terms We Use
Cautionary Statement Regarding
Forward-Looking Statements
Investor, Contact and Feedback
Information
9. Energy Price Volatility Including Alternative Fuels
Relation to the Board of Directors’ Skillset: High and
volatile energy prices, including those of alternative
fuels used by Cemex, may significantly impact our cost
structure. Our Board of Directors includes individuals with
expertise spanning various domains that can aid Cemex
in anticipating and reacting to fluctuations in energy
prices, including those in alternative fuels. These areas of
expertise include, but are not limited to Business Strategy,
Energy, Supply System, Procurement / Supply Chain,
Climate Change Mitigation and Adaptation Strategies,
Global Affairs, Logistics, Corporate Risk Management
Operation and Supervision, Research and Development,
among others.
10. Lower Availability or Increased Cost of Raw Materials
Relation to the Board of Directors’ Skillset: Certain
raw materials essential for our business operations
may become scarce or substantially increase in costs.
Within our Board of Directors, various members possess
expertise in Construction and Building Materials, Energy,
Procurement, Logistics, Procurement / Supply Chain,
Manufacturing, Sales, and Supply System, which enables
Cemex to manage the risk associated with potential
shortages or rising costs of our key raw materials.
11. Cyberthreats and Information Technology Risks
Relation to the Board of Directors’ Skillset: As digital
transformation advances and we continue to execute
our digital transformation initiative, Working Smarter,
integrating digital technologies into our operations
increases risks in information technology and third-
party reliance. Our Board of Directors has expertise in
Cybersecurity and/or Risk Management Threats, Data
Privacy, Administration and Risk Management, Corporate
Risk Management Operation and Supervision, Global
Affairs, Sales, Telecommunications, as well as other
related fields, providing Cemex with the necessary insight
to mitigate cybersecurity and information technology risks.
12. Operational Disruption Due to Different Interests
from Stakeholders
Relation to the Board of Directors’ Skillset: Several members
of our Board of Directors bring to the table a set of skills
in different areas that encompass overall the different
interests our stakeholders may have in Cemex, including but
not limited to the expertise in areas such as Corporate Risk
Management Operation and Supervision, Experience and
Best Practices in ESG Matters in the construction building
materials industry, Branding and Marketing, Corporate
Governance, Media Communications, Diversity Equity
and Inclusion, Entrepreneurship, Climate Change Risk
Assessment, Global Affairs, Public Affairs, Human Rights,
Investor Relations, and Community Engagement and Social
Impact Projects. All of this helps Cemex in complying, to the
best of its efforts, with its stakeholders’ expectations and
allows Cemex to better communicate with interest groups
and other related parties.
13. Health and Safety Risks
Relation to the Board of Directors’ Skillset: Operations
not conducted responsibly can lead to injuries, illnesses, or
even fatalities. Members of our Board of Directors have
expertise in Health & Safety matters, as well as in Human
Resources, Labor Matters and Executive Compensation
Structures and Transparency, and Human Rights in Supply
Chain Due Diligence, that provides significant insight
regarding the health and safety of our employees in all
our operations, ensuring their well-being, and prevent any
accidents or fatalities.
14. Labor Relations, Talent Attraction and Retention
Relation to the Board of Directors’ Skillset: A specialized
workforce is an invaluable asset for companies around the
globe and maintaining satisfactory labor relations is key
to business stability; therefore, attracting, hiring, retaining
and adequately managing talent is critical for Cemex’s
success. Our Board of Directors may provide key insights
in human resources programs and labor relations with the
expertise gathered in Business Strategy, Human Resources,
Labor Matters, Executive Compensation Structures and
Transparency, Health and Safety, ESG Matters-focused
training and education, Human Rights in Supply Chain and due
diligence, Diversity and Inclusion, and Ethics and Compliance,
supporting the Company’s efforts to attract and retain skilled
talent, as well as maintain satisfactory labor relations.
15. Emergence of a Pandemic, Epidemic,
or any Other Public Health Threat
Relation to the Board of Directors’ Skillset: Public health
threats pose a significant risk to the Company’s business,
financial condition, liquidity, and results of operations.
Our Board of Directors’ members can analyze and react
to health crises, as some of the members have previous
background experience in Global Affairs, Corporate Risk
Management Operation and Supervision, Procurement /
Supply Chain, Logistics, Procurement, Health and Safety,
and Healthcare. The foregoing also allows them to
design and implement, as well as to adhere to or adapt,
contingency plans that allow for business continuity.
16. Industry Disruptions by Emerging Technologies
or Alternative Solutions
Relation to the Board of Directors’ Skillset: Amidst a rapidly
changing industry marked by emerging technologies,
failure to adapt our business model to potential industry
disruptors could pose a risk to our capacity to compete
and our business, financial condition, liquidity, and results
of operations. The ability of our Board of Directors to seek
resilient and alternative solutions to potential disruptions
is an indispensable skill. To do so, in addition to experience
on Other Boards of Directors, some of the most relevant
areas of expertise of our Board of Directors include
Administration, Corporate Risk Management Operation
and Supervision, Business Strategy, Entrepreneurship,
Research and Development, Construction and Building
Materials, Energy, Media and Communication,
Telecommunications, Green Technologies, Renewable
Energy Solutions and/or Circular Economy, and
Cybersecurity and/or Risk Management Threats. This set
of skills allows them to address potential industry disrup-
tions and seek the implementation of new technologies,
processes, materials, and solutions in our Company in an
effective manner.
229 Cemex 2024 Integrated Report
Contents
Our Company
Our Strategy
Financial Performance
Environmental Excellence
Stakeholder Engagement
Governance
Appendix
Selected Consolidated Financial
Information
Financial Information
Non-Financial Information
Scope and Boundaries of
This Report
Cemex’s Materiality Assessment
Stakeholder Engagement
• Governance
EU Taxonomy
GRI Content Index
International Sustainability
Standards Board (ISSB)
Sustainability Accounting
Standards Board Response (SASB)
Task Force on Climate-related
Financial Disclosure Response
(TCFD)
Terms We Use
Cautionary Statement Regarding
Forward-Looking Statements
Investor, Contact and Feedback
Information
17. Just Transition: Addressing the Potential Impacts
from our Decarbonization Activities
Relation to the Board of Directors’ Skillset: The transition
towards a low-carbon economy and the adoption of more
environmentally and socially responsible practices across
our stakeholders presents challenges and opportunities.
Our Board of Directors, through their experience in Other
Boards of Directors, as well as their expertise in Business
Strategy, Mergers and Acquisitions, Entrepreneurship,
Research and Development, Construction and Building
Materials, Supply System, Procurement / Supply Chain,
Logistics, Energy, Climate Change Risk Assessment,
Climate Change Mitigation and Adaptation Strategies,
Climate Change Mitigation and Adaptation Strategies,
CO2 Emissions Reduction Targets and Programs, and
Green Technologies, Renewable Energy Solutions, and
Circular Economy, possess the necessary skillset to drive
further Cemex’s commitment to become a net-zero
CO2 company by 2050, as well as address any potential
impacts our decarbonization strategy may bring about.
18. Inadequate Implementation and Use of AI
Relation to the Board of Directors’ Skillset: The increasing
extent to which AI can develop, limited AI-governance
efforts, the potential misuse of AI by bad actors and other
AI-related issues can pose several risks to our business,
financial condition, liquidity, and results of operations, many
of which we may not have identified yet due to the rapidly
changing AI-environment and breakthroughs. Skills such
as Global Affairs, Corporate Risk Management Operation
and Supervision, Research and Development, Media and
Communications, Telecommunications, and in Cybersecurity
and Risk Management Threats allow our Board of Directors
to discern the implications and better position the Company
to face risks posed by AI and align Cemex with opportunities
AI technologies may provide.
19. Geoeconomic Confrontation Could Impact Growth
Prospects and Reshape Global Business Landscape
Relation to the Board of Directors’ Skillset: Geoeconomic
confrontations, such as trade tensions, sanctions, or
shifts in global economic alliances, could disrupt business
operations and reshape market dynamics. Our Board
of Directors’ expertise in Global Affairs, Economics and
Finance, Public Affairs, Business Strategy, Corporate
Risk Management Operation and Supervision, Supply
Chain, Logistics, Energy, and Investor Relations equips the
Company to assess and manage the impact of geopolitical
shifts on its operations, with insight on adapting to
changing global business environments and enabling
Cemex to navigate potential disruptions and seize new
growth opportunities in evolving markets.
230 Cemex 2024 Integrated Report
Contents
Our Company
Our Strategy
Financial Performance
Environmental Excellence
Stakeholder Engagement
Governance
Appendix
Selected Consolidated Financial
Information
Financial Information
Non-Financial Information
Scope and Boundaries of
This Report
Cemex’s Materiality Assessment
Stakeholder Engagement
Governance
• EU Taxonomy
GRI Content Index
International Sustainability
Standards Board (ISSB)
Sustainability Accounting
Standards Board Response (SASB)
Task Force on Climate-related
Financial Disclosure Response
(TCFD)
Terms We Use
Cautionary Statement Regarding
Forward-Looking Statements
Investor, Contact and Feedback
Information
EU Taxonomy
The European Union (EU) Taxonomy is a classification system established by the EU
Taxonomy Regulation to define environmentally sustainable economic activities. It is a tool
to help channel private investment towards the transition to a more sustainable economy.
The Taxonomy is based on six environmental objectives: climate change mitigation,
climate change adaptation, sustainable use and protection of water and marine resources,
transition to a circular economy, pollution prevention and control, and protection and
restoration of biodiversity and ecosystems.
For an economic activity to be considered environmentally sustainable under the
Taxonomy, it must contribute substantially to one or more of these six objectives, not
significantly harm any of the other objectives, and meet minimum social safeguards.
Technical Screening Criteria (TSC) have been developed in order to set out how these
requirements are to be applied in detail, pursuant to various Commission Delegated
Regulations (Delegated Acts) adopted under the Taxonomy Regulation.
The Taxonomy Regulation requires non-financial undertakings that are required to
report under the EU’s Corporate Sustainability Reporting Directive to disclose how and
to what extent the undertaking’s activities are associated with economic activities that
are environmentally sustainable and in particular the proportion of their turnover which
is derived from products or services associated with economic activities that qualify as
environmentally sustainable and the proportion of their capital expenditure (CapEx) and
operating expenditure (OpEx) which is related to assets or processes associated with
economic activities that are environmentally sustainable.
Although Cemex is currently not legally required to report under the Taxonomy Regulation
or the Corporate Sustainability Reporting Directive, since 2022, Cemex has worked
on providing Taxonomy-related disclosures aiming to ensure that our stakeholders
understand the extent to which Cemex’s activities are aligned with the Taxonomy.
Cemex has identified its core activity “manufacture of cement”, as well as “material recovery
from non-hazardous waste”, as Taxonomy-eligible under the climate change mitigation
objective. “Material recovery from non-hazardous waste” relates to construction and
operation of facilities for the sorting and processing of separately collected non-hazardous
waste streams into secondary raw materials. Additionally, for the objective of “transition to
a circular economy”, Cemex engages in “sorting and material recovery of non-hazardous
waste”. Other economic activities that Cemex carries out, such as the production of
aggregates and ready-mixed concrete and certain other businesses, do not fall within
activities that are currently eligible under the Taxonomy. Finally, we have reported on
certain other Cemex activities in respect of the climate change mitigation objective, but only
in respect of their contribution to Cemex CapEx. These activities are primarily “electricity
generation from solar and waste heat” and “freight transport services by road”.
Turnover
Turnover is defined as the sales generated by all activities of the company, as shown in
Cemex’s Financial Statements (referred to in the relevant Delegated Act as the denominator).
The turnover generated by the eligible and aligned activities is then calculated for the
reporting year (referred to in the relevant Delegated Act as the numerator).
For 2024, the total Cemex turnover under the Taxonomy stands at US$16,200 million, with
the proportion of turnover eligible under the Taxonomy being US$6,927 million (42.76%) for
the cement business, US$42 million (0.26%) for circular activities embedded in our aggregates
business, and US$8 million (0.05%) for urbanization solutions. The proportion of turnover
aligned with the Taxonomy is US$1,023 million (6.31%) for Cement, and US$16 million (0.10%) for
Aggregates, and US$6 million (0.04%) for Urbanization Solutions.
In Million
US Dollars
2024
Percentage (%)
2023
Percentage (%)
Taxonomy Non-eligible Turnover
9,223
56.93%
55.63%
Taxonomy-eligible but not aligned Turnover
5,932
36.62%
40.30%
Taxonomy-eligible and aligned Turnover
1,045
6.45%
4.07%
Total Turnover
16,200
100%
100%
Capital Expenditure (CapEx)
In respect of CapEx, the Taxonomy (in overview) requires that Cemex reports the proportion
of Taxonomy eligible and aligned CapEx (referred to in the relevant Delegated Act as the
numerator) compared to general CapEx (referred to in the relevant Delegated Act as the
denominator).
The definition of CapEx under the Taxonomy differs from the definition of CapEx used
by Cemex in its financial statements. CapEx pursuant to the Taxonomy is defined in the
relevant Delegated Act as fixed assets plus intangible assets, which, in our case, include
deferred charges in the financial statements plus business combinations during the
fiscal year. The denominator corresponds to Cemex group’s total CapEx, which includes
investments in intangible assets, investments in property, machinery and equipment, and
investments in right-of-use assets. CapEx includes the work carried out by the company for
its fixed assets and capitalized financial expenses. The numerator comprises the portion
of CapEx included in the denominator that pertains to assets or processes associated with
eligible economic activities. This also includes assets that are part of a plan to expand the
economic activities aligned with the Taxonomy or to facilitate the alignment of economic
activities eligible under the Taxonomy in the future, in this case by 2030 even though a ten-
year period is justified on the CapEx plan conditions set forth in the relevant Delegated Act.
231
Cemex 2024 Integrated Report
Contents
Our Company
Our Strategy
Financial Performance
Environmental Excellence
Stakeholder Engagement
Governance
Appendix
Selected Consolidated Financial
Information
Financial Information
Non-Financial Information
Scope and Boundaries of
This Report
Cemex’s Materiality Assessment
Stakeholder Engagement
Governance
• EU Taxonomy
GRI Content Index
International Sustainability
Standards Board (ISSB)
Sustainability Accounting
Standards Board Response (SASB)
Task Force on Climate-related
Financial Disclosure Response
(TCFD)
Terms We Use
Cautionary Statement Regarding
Forward-Looking Statements
Investor, Contact and Feedback
Information
For 2024, the total CapEx calculated pursuant to the Taxonomy Regulation amounts to
US$1,684 million. Within this amount, US$674 million (40.03%) is allocated to Taxonomy-
eligible CapEx for our cement business -including US$14 million (0.83%) for the CapEx plan-,
US$1 million (0.05%) and $4 million (0.27%) for circular activities in our urbanization solutions
and aggregates business, respectively, US$8 million (0.45%) for electricity generation
using solar and waste heat technologies and US$84 million (4.98%) for freight transport
services by road. The portion of CapEx aligned with the Taxonomy constitutes US$89 million
(5.30%) for cement, US$1 million (0.05%) and US$3 million (0.20%) for circular activities in
our urbanization solutions and aggregates business, respectively, US$8 million (0.45%) for
electricity generation using solar and waste heat technologies and US$36 million (2.14%) for
freight transport services by road. These aligned CapEx figures encompass US$137 million
from property, machinery, and equipment additions, right-of-use assets, and intangible
assets incurred during the fiscal year prior to depreciation, amortization, and any new
valuations, including those arising from revaluations and impairments, for the fiscal year,
excluding fair value changes. Leases not leading to the recognition of a right-of-use asset
are not classified as CapEx under the Taxonomy.
In Million
US Dollars
2024
Percentage (%)
2023
Percentage (%)
Taxonomy Non-eligible CapEx
913
54.22%
60.89%
Taxonomy-eligible but not aligned CapEx
634
37.64%
34.69%
Taxonomy-eligible and aligned CapEx
137
8.14%
4.42%
Total CapEx Pursuant to Taxonomy
1,684
100%
100%
Operational Expenditure (OpEx)
In respect of OpEx, the Taxonomy (in overview) requires that Cemex reports the proportion
of Taxonomy eligible and aligned OpEx (referred to in the relevant Delegated Act as the
numerator) compared to general OpEx (referred to in the relevant Delegated Act as the
denominator).
OpEx, as defined under the Taxonomy, also has a different definition to OpEx in respect
of Cemex’s financial statements. Under the Taxonomy, OpEx is defined as non-capitalized
direct costs that relate to research and development, building renovation measures, short-
term leases, maintenance and repairs, as well as other direct expenditures related to the
day-to-day maintenance of property, machinery, and equipment, by the company or a third
party to whom activities are outsourced, and which are necessary to ensure the continuous
and effective functioning of those assets.
For 2024, the total OpEx calculated pursuant to the Taxonomy amounted to US$1,258 million.
Within this figure, Taxonomy-eligible OpEx was identified as US$607 million (48.24%) for
cement.
Regarding the Taxonomy-eligible research and development expenditure in the cement
sector, direct allocation to specific Taxonomy-aligned plants was not feasible. Therefore,
such expenditure was allocated proportionally among all plants using a metric based on
total cement production. Furthermore, OpEx figures are not available for all Construction,
Demolition and Excavation Waste (CDEW) sites, so the information regarding these sites has
not been considered.
In summary, US$72 million (5.70%) of OpEx for our cement business, was aligned with
the Taxonomy. These aligned expenditures consist of research and development costs,
maintenance and repair expenses (internal & external), and short-term leases.
In Million
US Dollars
2024
Percentage (%)
2023
Percentage (%)
Taxonomy Non-eligible OpEx
651
51.76%
48.59%
Taxonomy-eligible but not aligned OpEx
535
42.55%
46.96%
Taxonomy-eligible and aligned OpEx
72
5.70%
4.45%
Total OEx Pursuant to Taxonomy
1,258
100%
100%
Cemex methodology and progress
Disclosures were prepared on a consolidated level for the entire Group, and activities
outside the EU were evaluated in the same way as activities within the EU. Turnover, CapEx,
and OpEx were gathered at the site level and then distributed proportionally to product-
level production for the relevant activity. We excluded white cement/clinker production,
as there are no applicable TSC. We also excluded trading activities and grinding facilities
producing cement with external clinker. Additionally, OpEx figures are not available for all
Construction, Demolition and Excavation Waste (CDEW) facilities, so the information on
these sites has not been considered.
The stringency of the Taxonomy means that we expect further Taxonomy alignment of our
activities gradually over time, as has been proved in our 2024 results vs. 2023. We envisage
that the outcome of our initial Taxonomy reporting will reflect the fact that some operations
in regions outside of Europe will face challenges due to the lack of strong regulatory
frameworks in those jurisdictions.
232 Cemex 2024 Integrated Report
Contents
Our Company
Our Strategy
Financial Performance
Environmental Excellence
Stakeholder Engagement
Governance
Appendix
Selected Consolidated Financial
Information
Financial Information
Non-Financial Information
Scope and Boundaries of
This Report
Cemex’s Materiality Assessment
Stakeholder Engagement
Governance
• EU Taxonomy
GRI Content Index
International Sustainability
Standards Board (ISSB)
Sustainability Accounting
Standards Board Response (SASB)
Task Force on Climate-related
Financial Disclosure Response
(TCFD)
Terms We Use
Cautionary Statement Regarding
Forward-Looking Statements
Investor, Contact and Feedback
Information
Proportion of turnover from products or services associated with Taxonomy-aligned economic activities – disclosure covering year 2024
2024
Substantial contribution criteria1,2
DNSH criteria
(“Does Not Significantly Harm”)
Economic Activities
Code
Turnover
Proportion of Turnover
Climate Change
Mitigation (CCM)
Climate Change
Adaptation (CCA)
Water (WTR)
Pollution (PPC)
Circular Economy (CE)
Biodiversity (BIO)
Climate Change
Mitigation (CCM)
Climate Change
Adaptation (CCA)
Water (WTR)
Pollution (PPC)
Circular Economy (CE)
Biodiversity (BIO)
Minimum Safeguards
Proportion of
Taxonomy aligned
(A.1.) or eligible (A.2.)
turnover in 2023
Category enabling
activity
Category transitional
activity
Million
USD
%
Y; N;
N/EL
Y; N;
N/EL
Y; N;
N/EL
Y; N;
N/EL
Y; N;
N/EL
Y; N;
N/EL
Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
%
E
T
A. TAXONOMY-ELIGIBLE ACTIVITIES
A.1. Environmentally sustainable activities (Taxonomy-aligned)
Manufacture of cement
CCM 3.7
1,023
6.31%
Y
N
N/EL
N/EL
N/EL
N/EL
Y
Y
Y
Y
Y
Y
Y
4.04%
T
Sorting and material recovery of non-hazardous waste
CE 2.7
23
0.14%
N/EL
N/EL
N/EL
N/EL
Y
N/EL
Y
Y
Y
Y
Y
Y
Y
0.03%
Turnover of environmentally sustainable activities
(Taxonomy-aligned) (A.1)
1,045
6.45%
6.31%
0.00%
0.00%
0.00%
0.14%
0.00%
4.07%
Of which Enabling3
0
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
Of which Transitional4
1,023
6.31%
6.31%
0.00%
0.00%
0.00%
0.00%
0.00%
4.04%
A.2. Taxonomy-eligible but not environmentally sustainable activities (not Taxonomy-aligned activities)
EL; N/EL EL; N/EL EL; N/EL EL; N/EL EL; N/EL EL; N/EL
Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
Manufacture of cement
CCM 3.7
5,904
36.45%
EL
EL
N/EL
N/EL
N/EL
N/EL
Y
Y
Y
Y
Y
Y
Y
40.12%
T
Sorting and material recovery of non-hazardous waste
CE 2.7
28
0.17%
N/EL
N/EL
N/EL
N/EL
Y
N/EL
Y
Y
Y
Y
Y
Y
Y
0.19%
Turnover of Taxonomy-eligible but not environmentally
sustainable activities (not Taxonomy-aligned activities) (A.2)
5,932
36.62%
36.45%
0.00%
0.00%
0.00%
0.17%
0.00%
40.30%
A. Turnover of Taxonomy-eligible activities (A.1+A.2)
6,977
43.07%
42.76%
0.00%
0.00%
0.00%
0.31%
0.00%
44.37%
B. TAXONOMY-NON-ELIGIBLE ACTIVITIES
Turnover of Taxonomy-non-eligible activities
9,223
56.93%
55.63%
TOTAL (A+B)
16,200 100.00%
100.00%
1. Y – Yes, Taxonomy-eligible and Taxonomy-aligned activity with the relevant environmental objective; N – No, Taxonomy-eligible but
not Taxonomy-aligned activity with the relevant environmental objective; N/EL – Not eligible, Taxonomy-non-eligible activity for the
relevant environmental objective.
2. EL – Taxonomy-eligible activity for the relevant objective; N/EL – Taxonomy-non-eligible activity for the relevant objective.
3. Enabling activities: Activities that enable other activities to make a substantial contribution to one or more of the objectives, and where
that activity; a) Does not lead to a lock-in in assets that undermine long-term environmental goals, considering the economic lifetime of
those assets; and b) Has a substantial positive environmental impact on the basis of lifecycle considerations.
4. Transitional activities: Must contribute to climate change mitigation and a pathway to keeping global warming in line with Paris Agreement
commitments. Transitional activities only qualify where the following criteria are met: a) There are no technologically or economically
feasible low-carbon alternatives; b) Green House Gas emission levels correspond to the best performance in the sector or industry; and
c) The activity does not lead to carbon lock-in or hamper the development and deployment of low-carbon alternatives.
233 Cemex 2024 Integrated Report
Contents
Our Company
Our Strategy
Financial Performance
Environmental Excellence
Stakeholder Engagement
Governance
Appendix
Selected Consolidated Financial
Information
Financial Information
Non-Financial Information
Scope and Boundaries of
This Report
Cemex’s Materiality Assessment
Stakeholder Engagement
Governance
• EU Taxonomy
GRI Content Index
International Sustainability
Standards Board (ISSB)
Sustainability Accounting
Standards Board Response (SASB)
Task Force on Climate-related
Financial Disclosure Response
(TCFD)
Terms We Use
Cautionary Statement Regarding
Forward-Looking Statements
Investor, Contact and Feedback
Information
1. Y – Yes, Taxonomy-eligible and Taxonomy-aligned activity with the relevant environmental objective; N – No, Taxonomy-eligible but
not Taxonomy-aligned activity with the relevant environmental objective; N/EL – Not eligible, Taxonomy-non-eligible activity for the
relevant environmental objective.
2. EL – Taxonomy-eligible activity for the relevant objective; N/EL – Taxonomy-non-eligible activity for the relevant objective.
3. Enabling activities: Activities that enable other activities to make a substantial contribution to one or more of the objectives, and where
that activity; a) Does not lead to a lock-in in assets that undermine long-term environmental goals, considering the economic lifetime of
those assets; and b) Has a substantial positive environmental impact on the basis of lifecycle considerations.
4. Transitional activities: Must contribute to climate change mitigation and a pathway to keeping global warming in line with Paris Agreement
commitments. Transitional activities only qualify where the following criteria are met: a) There are no technologically or economically
feasible low-carbon alternatives; b) Green House Gas emission levels correspond to the best performance in the sector or industry; and
c) The activity does not lead to carbon lock-in or hamper the development and deployment of low-carbon alternatives.
Proportion of CapEx from products or services associated with Taxonomy-aligned economic activities – disclosure covering year 2024
2024
Substantial contribution criteria1,2
DNSH criteria
(“Does Not Significantly Harm”)
Economic Activities
Code
CapEx
Proportion of CapEx
Climate Change
Mitigation (CCM)
Climate Change
Adaptation (CCA)
Water (WTR)
Pollution (PPC)
Circular Economy (CE)
Biodiversity (BIO)
Climate Change
Mitigation (CCM)
Climate Change
Adaptation (CCA)
Water (WTR)
Pollution (PPC)
Circular Economy (CE)
Biodiversity (BIO)
Minimum Safeguards
Proportion of Taxonomy
aligned (A.1.) or eligible
(A.2.) CapEx in 2023
Category enabling
activity
Category transitional
activity
Million
USD
%
Y; N;
N/EL
Y; N;
N/EL
Y; N;
N/EL
Y; N;
N/EL
Y; N;
N/EL
Y; N;
N/EL
Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
E
T
A. TAXONOMY-ELIGIBLE ACTIVITIES
A.1. Environmentally sustainable activities (Taxonomy-aligned)
Manufacture of cement
CCM 3.7
89
5.30%
Y
N
N/EL
N/EL
N/EL
N/EL
Y
Y
Y
Y
Y
Y
Y
3.60%
T
Sorting and material recovery of non-hazardous waste
CE 2.7
4
0.25%
N/EL
N/EL
N/EL
N/EL
Y
N/EL
Y
Y
Y
Y
Y
Y
Y
0.78%
Electricity generation using solar photovoltaic technology
CCM 4.1
5
0.30%
Y
N
N/EL
N/EL
N/EL
N/EL
Y
Y
Y
Y
Y
Y
Y
0.03%
Co-generation of power from fossil gaseous fuels
CCM 4.30
2
0.15%
Y
N
N/EL
N/EL
N/EL
N/EL
Y
Y
Y
Y
Y
Y
Y
0.00%
T
Freight transport services by road
CCM 6.6
36
2.14%
Y
N
N/EL
N/EL
N/EL
N/EL
Y
Y
Y
Y
Y
Y
Y
0.01%
T
CapEx of environmentally sustainable activities
(Taxonomy-aligned) (A.1)
137
8.14%
7.89%
0.00%
0.00%
0.00%
0.25%
0.00%
4.42%
Of which Enabling3
0
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
Of which Transitional4
128
7.59%
7.59%
0.00%
0.00%
0.00%
0.00%
0.00%
3.61%
A.2. Taxonomy-eligible but not environmentally sustainable activities (not Taxonomy-aligned activities)
EL; N/EL EL; N/EL EL; N/EL EL; N/EL EL; N/EL EL; N/EL
Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
Manufacture of cement
CCM 3.7
585
34.73%
EL
EL
N/EL
N/EL
N/EL
N/EL
Y
Y
Y
Y
Y
Y
Y
34.69%
T
Sorting and material recovery of non-hazardous waste
CE 2.7
1
0.07%
N/EL
N/EL
N/EL
N/EL
Y
N/EL
Y
Y
Y
Y
Y
Y
Y
0.00%
Freight transport services by road
CCM 6.6
48
2.84%
EL
EL
N/EL
N/EL
N/EL
N/EL
Y
Y
Y
Y
Y
Y
Y
0.00%
T
CapEx of Taxonomy-eligible but not environmentally sustainable
activities (not Taxonomy-aligned activities) (A.2)
634
37.64%
37.57%
0.00%
0.00%
0.00%
0.07%
0.00%
34.69%
A. CapEx of Taxonomy-eligible activities (A.1+A.2)
771
45.78%
45.45%
0.00%
0.00%
0.00%
0.32%
0.00%
39.11%
B. TAXONOMY-NON-ELIGIBLE ACTIVITIES
CapEx of Taxonomy-non-eligible activities
913
54.22%
60.89%
TOTAL (A+B)
1,684
100.00%
100.00%
234 Cemex 2024 Integrated Report
Contents
Our Company
Our Strategy
Financial Performance
Environmental Excellence
Stakeholder Engagement
Governance
Appendix
Selected Consolidated Financial
Information
Financial Information
Non-Financial Information
Scope and Boundaries of
This Report
Cemex’s Materiality Assessment
Stakeholder Engagement
Governance
• EU Taxonomy
GRI Content Index
International Sustainability
Standards Board (ISSB)
Sustainability Accounting
Standards Board Response (SASB)
Task Force on Climate-related
Financial Disclosure Response
(TCFD)
Terms We Use
Cautionary Statement Regarding
Forward-Looking Statements
Investor, Contact and Feedback
Information
Proportion of OpEx from products or services associated with Taxonomy-aligned economic activities – disclosure covering year 2024
2024
Substantial contribution criteria1,2
DNSH criteria
(“Does Not Significantly Harm”)
Economic Activities
Code
OpEx
Proportion of OpEx
Climate Change
Mitigation (CCM)
Climate Change
Adaptation (CCA)
Water (WTR)
Pollution (PPC)
Circular Economy (CE)
Biodiversity (BIO)
Climate Change
Mitigation (CCM)
Climate Change
Adaptation (CCA)
Water (WTR)
Pollution (PPC)
Circular Economy (CE)
Biodiversity (BIO)
Minimum
Safeguards
Proportion of Taxonomy
aligned (A.1.) or eligible
(A.2.) OpEx in 2023
Category enabling
activity
Category transitional
activity
Million
USD
%
Y; N;
N/EL
Y; N;
N/EL
Y; N;
N/EL
Y; N;
N/EL
Y; N;
N/EL
Y; N;
N/EL
Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
%
E
T
A. TAXONOMY-ELIGIBLE ACTIVITIES
A.1. Environmentally sustainable activities (Taxonomy-aligned)
Manufacture of cement
CCM 3.7
72
5.70%
Y
N
N/EL
N/EL
N/EL
N/EL
Y
Y
Y
Y
Y
Y
Y
4.45%
T
OpEx of environmentally sustainable activities
(Taxonomy-aligned) (A.1)
72
5.70%
5.70%
0.00%
0.00%
0.00%
0.00%
0.00%
4.45%
Of which Enabling3
0
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
Of which Transitional4
72
5.70%
5.70%
0.00%
0.00%
0.00%
0.00%
0.00%
4.45%
A.2. Taxonomy-eligible but not environmentally sustainable activities (not Taxonomy-aligned activities)
EL; N/EL EL; N/EL EL; N/EL EL; N/EL EL; N/EL EL; N/EL
Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
Manufacture of cement
CCM 3.7
535
42.55%
EL
EL
N/EL
N/EL
N/EL
N/EL
Y
Y
Y
Y
Y
Y
Y
46.96%
T
OpEx of Taxonomy-eligible but not environmentally sustainable
activities (not Taxonomy-aligned activities) (A.2)
535
42.55%
42.55%
0.00%
0.00%
0.00%
0.00%
0.00%
46.96%
A. OpEx of Taxonomy eligible activities (A.1+A.2)
607
48.24%
48.24%
0.00%
0.00%
0.00%
0.00%
0.00%
51.41%
B. TAXONOMY-NON-ELIGIBLE ACTIVITIES
OpEx of Taxonomy-non-eligible activities
651
51.76%
48.59%
TOTAL (A+B)
1,258
100.00%
100.00%
1. Y – Yes, Taxonomy-eligible and Taxonomy-aligned activity with the relevant environmental objective; N – No, Taxonomy-eligible but
not Taxonomy-aligned activity with the relevant environmental objective; N/EL – Not eligible, Taxonomy-non-eligible activity for the
relevant environmental objective.
2. EL – Taxonomy-eligible activity for the relevant objective; N/EL – Taxonomy-non-eligible activity for the relevant objective.
3. Enabling activities: Activities that enable other activities to make a substantial contribution to one or more of the objectives, and where
that activity; a) Does not lead to a lock-in in assets that undermine long-term environmental goals, considering the economic lifetime of
those assets; and b) Has a substantial positive environmental impact on the basis of lifecycle considerations.
4. Transitional activities: Must contribute to climate change mitigation and a pathway to keeping global warming in line with Paris Agreement
commitments. Transitional activities only qualify where the following criteria are met: a) There are no technologically or economically
feasible low-carbon alternatives; b) Green House Gas emission levels correspond to the best performance in the sector or industry; and
c) The activity does not lead to carbon lock-in or hamper the development and deployment of low-carbon alternatives.
235 Cemex 2024 Integrated Report
Contents
Our Company
Our Strategy
Financial Performance
Environmental Excellence
Stakeholder Engagement
Governance
Appendix
Selected Consolidated Financial
Information
Financial Information
Non-Financial Information
Scope and Boundaries of
This Report
Cemex’s Materiality Assessment
Stakeholder Engagement
Governance
EU Taxonomy
• GRI Content Index
International Sustainability
Standards Board (ISSB)
Sustainability Accounting
Standards Board Response (SASB)
Task Force on Climate-related
Financial Disclosure Response
(TCFD)
Terms We Use
Cautionary Statement Regarding
Forward-Looking Statements
Investor, Contact and Feedback
Information
GRI Standard
Disclosure
Page reference and/or direct answers
Omissions
SDG link
UNGC
Universal Standards
GRI 1: Foundation 2021
General disclosures
GRI 2: General
Disclosures 2021
2-1 Organizational details
p. 220-221 - Scope and Boundaries of this Report
2-2 Entities included in the organization’s
sustainability reporting
p. 220-221 - Scope and Boundaries of this Report
2-3 Reporting period, frequency and contact
point
p. 220-221 - Scope and Boundaries of this Report
2-4 Restatements of information
p. 220-221- Scope and Boundaries of this Report
2-5 External assurance
p. 217-219 - Independent Limited Assurance Report on Key Indicators of
Sustainability Performance
2-6 Activities, value chain and other business
relationships
p. 7-8 - Cemex Overview
p. 76 - Customer Centricity: Driving a Superior Customer Experience
p. 83 - Community Development: Engaging With Communities to Deliver Transformative
Outcomes
ä How cement is made
ä Suppliers
2-7 Employees
p. 83-84 - Community Development: Engaging With Communities to Deliver Transformative
Outcomes
2-8 Workers who are not employees
p. 68 - Global Employee Composition
2-9 Governance structure and composition
p. 93-105 - Corporate Governance
ä Investor Center
GRI Content Index
236 Cemex 2024 Integrated Report
Contents
Our Company
Our Strategy
Financial Performance
Environmental Excellence
Stakeholder Engagement
Governance
Appendix
Selected Consolidated Financial
Information
Financial Information
Non-Financial Information
Scope and Boundaries of
This Report
Cemex’s Materiality Assessment
Stakeholder Engagement
Governance
EU Taxonomy
• GRI Content Index
International Sustainability
Standards Board (ISSB)
Sustainability Accounting
Standards Board Response (SASB)
Task Force on Climate-related
Financial Disclosure Response
(TCFD)
Terms We Use
Cautionary Statement Regarding
Forward-Looking Statements
Investor, Contact and Feedback
Information
GRI Standard
Disclosure
Page reference and/or direct answers
Omissions
SDG link
UNGC
GRI 2: General
Disclosures 2021
2-10 Nomination and selection of the highest
governance body
p. 94 - Our Board of Directors
ä 20-F
• Item 6: Directors, Senior Management and Employees
Since 2022, each candidate to become a member of the Board of Directors has
been elected in an individual manner.
2-11 Chair of the highest governance body
p. 94 - Our Board of Directors
ä 20-F
• Item 6: Directors, Senior Management and Employees
2-12 Role of the highest governance body in
overseeing the management of impacts
p. 92 - Governance
p. 94 - Our Board of Directors
p. 103-105 - Board committees
2-13 Delegation of responsibility for managing
impacts
p. 92 - Governance
p. 94 - Our Board of Directors
p. 106-108 - Executive Committee
2-14 Role of the highest governance body in
sustainability reporting
p. 103-105 - Board Committees - Sustainability, Climate Action, Social Impact, and Diversity
Committee
2-15 Conflicts of interest
p. 111 - Ethics and Compliance
p. 103-105 - Board Committees
p. 117 - Risk and Opportunity management: Regulatory and Compliance Requirements, including
Sustainability Regulations
ä 20-F
• Item 7- Major Shareholders and Related Party Transactions
• Item16G- Corporate Governance
• Item 6: Directors, Senior Management and Employee
2-16 Communication of critical concerns
p. 117-118 - Risks and Opportunity management
p. 111 - Ethics and Compliance
2-17 Collective knowledge of the highest
governance body
p. 102 - Board of Directors Skills Matrix
p. 226-229 - Cemex’s Board of Directors Skills Matrix
ä 20-F
• Item 6: Directors, Senior Management and Employees
2-18 Evaluation of the performance of the
highest governance body
ä Board evaluations and self-evaluations
2-19 Remuneration policies
p. 109 - Executive Compensation
p. 135 - Notes to the consolidated financial statements
ä 20-F
• Item 6: Directors, Senior Management and Employees
237 Cemex 2024 Integrated Report
Contents
Our Company
Our Strategy
Financial Performance
Environmental Excellence
Stakeholder Engagement
Governance
Appendix
Selected Consolidated Financial
Information
Financial Information
Non-Financial Information
Scope and Boundaries of
This Report
Cemex’s Materiality Assessment
Stakeholder Engagement
Governance
EU Taxonomy
• GRI Content Index
International Sustainability
Standards Board (ISSB)
Sustainability Accounting
Standards Board Response (SASB)
Task Force on Climate-related
Financial Disclosure Response
(TCFD)
Terms We Use
Cautionary Statement Regarding
Forward-Looking Statements
Investor, Contact and Feedback
Information
GRI Standard
Disclosure
Page reference and/or direct answers
Omissions
SDG link
UNGC
GRI 2: General
Disclosures 2021
2-20 Process to determine remuneration
p. 109 - Executive Compensation
ä 20-F
• Item 6: Directors, Senior Management and Employees
• Item 5: Operating and Financial Review and Prospects
Cemex offers a competitive compensation package based on the responsibility level of the position,
and it is designed considering the following: the representation of the labor markets in which a
given Cemex Business Unit competes for talent; the data should be compiled from independent,
professional, third party surveys; the data should include market base pay and total cash
compensation of comparable companies.
2-21 Annual total compensation ratio
p. 211 - Non-Financial Information – Employee highest to median compensation ratio by region
2-22 Statement on sustainable development
strategy
p. 3 - Letter to our Stakeholders
p. 11 - Our Sustainability Targets
2-23 Policy commitments
ä Code of Ethics and Business Conduct
ä Code of Conduct when doing Business with Us
ä Human Rights Policy
2-24 Embedding policy commitments
p. 111 - Ethics and Compliance
2-25 Processes to remediate negative impacts
p. 224 - How We Engage With Our Stakeholders
p. 115 - Reporting and Investigations
p. 128 - Respect for Human Rights Is Embedded in Our Business
p. 131 - Human Rights: Our Policies and Processes
p. 83-91 - Community Development: Engaging With Communities to Deliver Transformative
Outcomes
p. 84 - Cemex Community Engagement Process
p. 31 - Environmental Excellence
2-26 Mechanisms for seeking advice and
raising concerns
p. 224 - How We Engage With Our Stakeholders
p. 115 - Reporting and Investigations
2-27 Compliance with laws and regulations
p. 111 - Ethics and Compliance
p. 117 - Risk and Opportunity management: Regulatory and Compliance Requirements, including
Sustainability Regulations
p. 194 - Notes to the Consolidated Financial Statements - Legal Proceedings
ä 20-F
• Item 4: Information on the Company: Regulatory Matters and Legal Proceedings
• Item 18: Financial Statements
2-28 Membership associations
p. 63 - Memberships and Industry Associations
ä Innovation & Partnerships
2-29 Approach to stakeholder engagement
p. 21 - Stakeholder Alignment: Placing People at the Center of Every Business Decision
p. 224 - How We Engage With Our Stakeholders
p. 76 - Customer Centricity: Driving a Superior Customer Experience
p. 83-91 - Community Development: Engaging With Communities to Deliver Transformative
Outcomes
Cemex’s Net Promoter Score (NPS) for 2024 was 74
2-30 Collective bargaining agreements
p. 211 - Non-Financial Information, Employees covered by a collective bargaining agreement by
region (%)
238 Cemex 2024 Integrated Report
Contents
Our Company
Our Strategy
Financial Performance
Environmental Excellence
Stakeholder Engagement
Governance
Appendix
Selected Consolidated Financial
Information
Financial Information
Non-Financial Information
Scope and Boundaries of
This Report
Cemex’s Materiality Assessment
Stakeholder Engagement
Governance
EU Taxonomy
• GRI Content Index
International Sustainability
Standards Board (ISSB)
Sustainability Accounting
Standards Board Response (SASB)
Task Force on Climate-related
Financial Disclosure Response
(TCFD)
Terms We Use
Cautionary Statement Regarding
Forward-Looking Statements
Investor, Contact and Feedback
Information
GRI Standard
Disclosure
Page reference and/or direct answers
Omissions
SDG link
UNGC
Material topics
GRI 3: Material
Topics 2021
3-1 Process to determine material topics
p. 222 - Cemex’s Materiality Assessment
p. 220-221 - Scope and Boundaries of This Report
3-2 List of material topics
p. 223 - Our Materiality Matrix
Community Engagement and Development
GRI 3: Material
Topics 2021
3-3 Management of material topics
p. 83-91 - Community Development: Engaging With Communities to Deliver Transformative
Outcomes
p. 222-223 - Cemex’s Materiality Assessment
p. 224-225 - How We Engage With Our Stakeholders
ä Code of Ethics and Business Conduct
GRI 202: Market
Presence 2016
202-1 Ratios of standard entry level wage by
gender compared to local minimum wage
p. 211 - Non-Financial Information, Cemex entry level to local minimum wage ratio
by region
1.2, 5.1,
8.5
6
202-2 Proportion of senior management hired
from the local community
p. 131-132 - Human Rights: Our Policies and Processes
p. 83 - Community Development: Engaging With Communities to Deliver Transformative
Outcomes
p. 211 - Non-Financial Information, Countries with practices to promote local hiring (%)
8.5
6
GRI 203: Indirect
Economic Impacts
2016
203-1 Infrastructure investments and services
supported
p. 54-58 - Innovation and Partnerships: Catalyzing Innovation Across Our Business
and Industry
p. 83 - Community Development: Engaging With Communities to Deliver Transformative
Outcomes
p. 86 - Global Volunteering
p. 212 - Non-Financial Information- Social Impact
p. 84 - Cemex Community Engagement Process
5.4, 9.1,
11.2
9
203-2 Significant indirect economic impacts
p. 83 - Community Development: Engaging With Communities to Deliver Transformative
Outcomes
p. 212 – Non-Financial Information - Social Impact
Cemex’s indirect economic impacts, particularly those resulting from community initiatives,
contribute to international goals and policy agendas associated with health, affordable housing,
education, and environmental sustainability
1.2, 3.8,
8.2, 8.3,
8.5
GRI 413: Local
Communities 2016
413-1 Operations with local community
engagement, impact assessments, and
development programs
p. 212 - Non-Financial Information - Social Impact
Responsible Sourcing
GRI 3: Material
Topics 2021
3-3 Management of material topics
p. 80-82 - Supplier Networks: Building Strong Relationships, Fostering Mutual Value
p. 222-223 - Cemex’s Materiality Assessment
ä Code of Conduct when doing Business with Us
ä Suppliers
GRI 204:
Procurement
Practices 2016
204-1 Proportion of spending on local
suppliers
p. 215 - Non-Financial Information - Purchases sourced from locally-based suppliers (%)
We believe that local sourcing is, in and of itself, a sustainable business practice. It creates jobs,
which in turn stimulate local economies, while developing new skills among local workers. Whenever
feasible, we support small, locally based suppliers everywhere we operate. The definition of local
supplier is specific to each country where we operate.
8.3
239 Cemex 2024 Integrated Report
Contents
Our Company
Our Strategy
Financial Performance
Environmental Excellence
Stakeholder Engagement
Governance
Appendix
Selected Consolidated Financial
Information
Financial Information
Non-Financial Information
Scope and Boundaries of
This Report
Cemex’s Materiality Assessment
Stakeholder Engagement
Governance
EU Taxonomy
• GRI Content Index
International Sustainability
Standards Board (ISSB)
Sustainability Accounting
Standards Board Response (SASB)
Task Force on Climate-related
Financial Disclosure Response
(TCFD)
Terms We Use
Cautionary Statement Regarding
Forward-Looking Statements
Investor, Contact and Feedback
Information
GRI Standard
Disclosure
Page reference and/or direct answers
Omissions
SDG link
UNGC
GRI 308: Supplier
Environmental
Assessment 2016
308-1 New suppliers that were screened using
environmental criteria
p. 80-82 - Supplier Networks: Building Strong Relationships, Fostering Mutual Value
308-2 Negative environmental impacts in the
supply chain and actions taken
We have local initiatives to assess suppliers in each country. In 2024, 74 critical suppliers were
identified to have potential impacts with issues related to the ESG topics. The relationship
between 7 of those companies and Cemex was terminated, the rest must carry out a remediation
plan provided by the 3rd party evaluator, if said plan is not implemented it can be decided to
terminate the relationship.
GRI 414: Supplier
Social Assessment
2016
414-1 New suppliers that were screened using
social criteria
p. 80-82 - Supplier Networks: Building Strong Relationships, Fostering Mutual Value
Additionally, we have local initiatives to assess suppliers in each country.
5.2, 8.8,
16.1
2, 6
414-2 Negative social impacts in the supply
chain and actions taken
We have local initiatives to assess suppliers in each country. In 2024, 74 critical suppliers were
identified to have potential impacts with issues related to the ESG topics. The relationship
between 7 of those companies and Cemex was terminated, the rest must carry out a remediation
plan provided by the 3rd party evaluator, if said plan is not implemented it can be decided to
terminate the relationship.
5.2, 8.8,
16.1
2
Ethics and Compliance
GRI 3: Material
Topics 2021
3-3 Management of material topics
p. 220-221 - Scope and boundaries of this Report
p. 115-116 - Reporting and Investigations
ä Ethics and Compliance
GRI 205:
Anti-corruption
2016
205-1 Operations assessed for risks related to
corruption
As part of the ETHOS organization’s responsibilities, enhanced monitoring is given to the most
sensitive countries concerning corruption risks pertinent to the countries in which we operate.
During 2024, our main standalone operations in terms of revenues were: the United Kingdom (low
risk), and Germany (low risk). We also operate in other countries of which some are medium risk
(such as the United States, France, Israel, Spain, and Poland, among others), and high risk (such as
Mexico, Colombia, and Panama, among others). This risk classification is based on Transparency
International’s 2024 Corruption Perception Index. We believe Our Code of Ethics and Business
Conduct reflects the requirements of the Sarbanes-Oxley Act of 2002 (SOX).
16.5
10
205-2 Communication and training about anti-
corruption policies and procedures
p. 114 - Training on Business Ethics and Compliance Principles
We use communication resources to distribute our Global Anti-Corruption Policy to all (100%)
governance body members and employees. Regarding our business partners, supplier contracts
include not only anti-bribery clauses, but also compliance declarations that cover anti-bribery
matters.
16.5
10
205-3 Confirmed incidents of corruption and
actions taken
There were no confirmed incidents that met the Foreign Corrupt Practices Act and UK Bribery
Act standard for corruption, nor were any legal cases regarding corrupt practices by either our
organization or our employees concluded during the reporting period. We continuously monitor
our employees’ behavior and compel our employees to report any possible corruption acts
through ETHOSline.
GRI 206:
Anti-competitive
Behavior 2016
206-1 Legal actions for anti-competitive
behavior, anti-trust, and monopoly practices
p. 194 - Notes to the consolidated financial statements: 25) Legal proceedings
ä 20-F
• Item 4: Information on the Company: Regulatory Matters and Legal Proceedings
240 Cemex 2024 Integrated Report
Contents
Our Company
Our Strategy
Financial Performance
Environmental Excellence
Stakeholder Engagement
Governance
Appendix
Selected Consolidated Financial
Information
Financial Information
Non-Financial Information
Scope and Boundaries of
This Report
Cemex’s Materiality Assessment
Stakeholder Engagement
Governance
EU Taxonomy
• GRI Content Index
International Sustainability
Standards Board (ISSB)
Sustainability Accounting
Standards Board Response (SASB)
Task Force on Climate-related
Financial Disclosure Response
(TCFD)
Terms We Use
Cautionary Statement Regarding
Forward-Looking Statements
Investor, Contact and Feedback
Information
GRI Standard
Disclosure
Page reference and/or direct answers
Omissions
SDG link
UNGC
Sustainable Products and Solutions
GRI 3: Material
Topics 2021
3-3 Management of material topics
p. 32-46 - Environmental Excellence
GRI 301: Materials
2016
301-1 Materials used by weight or volume
Confidentiality constraints:
this information is key for our
business strategy.
301-2 Recycled input materials used
p. 35 - Sustainable Products and Solutions: Expanding the Sustainability Features of Our Products
p. 44 - Circular Economy: Repurposing Materials to Minimize Our Environmental Impact
p. 213 - Non-Financial Information, Waste Management and Circularity
Electricity Costs, Efficiency, and Sourcing/ Alternative Fuels and Raw Materials
GRI 3: Material
Topics 2021
3-3 Management of material topics
p. 32-46 - Environmental Excellence
GRI 302: Energy
2016
302-1 Energy consumption within the
organization
p. 213 - Non-Financial Information, Carbon Strategy and Energy - Fuel Consumption, Power
Consumption
See the ä GCCA Sustainability Guidelines for co-processing fuels and raw materials in cement
manufacturing
All units are available in the ä Cement CO2 and Energy Protocol, Version 3.1, CO2 Emissions and
Energy Inventory
302-3 Energy intensity
p. 213 - Non-Financial Information, Carbon Strategy and Energy - Specific heat consumption (MJ/
ton clinker), Specific power consumption (kWh/ton cement)
More information about our energy intensity can be found in our CDP submission:
www.cdp.net
GRI 302: Energy
2016
302-4 Reduction of energy consumption
p. 213 - Non-Financial Information, Carbon Strategy and Energy
Energy included: Fuels and electricity used during the process of production. Baseline: 1990
All units are available in the ä Cement CO2 and Energy Protocol, Version 3.1, CO2 Emissions and
Energy Inventory
302-5 Reductions in energy requirements of
products and services
p. 35 - Sustainable Products and Solutions: Expanding the Sustainability Features of Our Products
p. 213 - Non-Financial Information, Carbon Strategy and Energy
Confidentiality constraints:
Cemex has a number of
products and solutions that
result in energy savings,
however this information is
key for our business strategy.
Water Preservation
GRI 3: Material
Topics 2021
3-3 Management of material topics
ä Cemex Water Policy
ä GCCA Sustainability Guidelines for the monitoring and reporting of water in cement
manufacturing
ä Cemex Environmental Policy
ä Cemex Biodiversity Policy
p. 47 - Water, Biodiversity, and Air Quality: Building a Nature-Positive Future
241
Cemex 2024 Integrated Report
Contents
Our Company
Our Strategy
Financial Performance
Environmental Excellence
Stakeholder Engagement
Governance
Appendix
Selected Consolidated Financial
Information
Financial Information
Non-Financial Information
Scope and Boundaries of
This Report
Cemex’s Materiality Assessment
Stakeholder Engagement
Governance
EU Taxonomy
• GRI Content Index
International Sustainability
Standards Board (ISSB)
Sustainability Accounting
Standards Board Response (SASB)
Task Force on Climate-related
Financial Disclosure Response
(TCFD)
Terms We Use
Cautionary Statement Regarding
Forward-Looking Statements
Investor, Contact and Feedback
Information
GRI Standard
Disclosure
Page reference and/or direct answers
Omissions
SDG link
UNGC
GRI 303: Water and
Effluents 2018
303-1 Interactions with water as a shared
resource
p. 47-48 - Water, Biodiversity, and Air Quality: Building a Nature-Positive Future
Cement manufacturing requires water for heavy equipment cooling, for exhaust gas conditioning
and for other parts of the process. We are taking actions to offset our water footprint.
303-2 Management of water
discharge-related impacts
p. 47-48 - Water, Biodiversity, and Air Quality: Building a Nature-Positive Future
ä Cemex Water Policy
Cemex complies with the ä GCCA Sustainability Guidelines for the monitoring and reporting of
water in cement manufacturing.
GRI 303: Water and
Effluents 2018
303-3 Water withdrawal
p. 47-48 - Water, Biodiversity, and Air Quality: Building a Nature-Positive Future
p. 214 – Non-Financial Information, Water management
303-4 Water discharge
p. 47-48 - Water, Biodiversity, and Air Quality: Building a Nature-Positive Future
p. 214 – Non-Financial Information, Water management
303-5 Water consumption
p. 47-48 - Water, Biodiversity, and Air Quality: Building a Nature-Positive Future
p. 214 – Non-Financial Information, Water management
Biodiversity and Ecosystem Conservation and Rehabilitation
GRI 3: Material
Topics 2021
3-3 Management of material topics
ä Cemex Biodiversity Policy
p. 49-52 - Water, Biodiversity, and Air Quality: Building a Nature-Positive Future
GRI 304:
Biodiversity 2016
304-1 Operational sites owned, leased,
managed in, or adjacent to, protected areas
and areas of high biodiversity value outside
protected areas
p. 49-52 - Water, Biodiversity, and Air Quality: Building a Nature-Positive Future
p. 215 - Non-Financial Information, Biodiversity Management
304-2 Significant impacts of activities,
products and services on biodiversity
p. 49-52 - Water, Biodiversity, and Air Quality: Building a Nature-Positive Future
304-3 Habitats protected or restored
p. 49-52 - Water, Biodiversity, and Air Quality: Building a Nature-Positive Future
p. 52 - El Carmen Nature Reserve: Habitat Restoration and Species Conservation
Climate Change and Natural Disasters
GRI 3: Material
Topics 2021
3-3 Management of material topics
ä Position paper on climate change
p. 32-34 - Future in Action: Achieving Decarbonization Targets Toward a Net-Zero Future
242 Cemex 2024 Integrated Report
Contents
Our Company
Our Strategy
Financial Performance
Environmental Excellence
Stakeholder Engagement
Governance
Appendix
Selected Consolidated Financial
Information
Financial Information
Non-Financial Information
Scope and Boundaries of
This Report
Cemex’s Materiality Assessment
Stakeholder Engagement
Governance
EU Taxonomy
• GRI Content Index
International Sustainability
Standards Board (ISSB)
Sustainability Accounting
Standards Board Response (SASB)
Task Force on Climate-related
Financial Disclosure Response
(TCFD)
Terms We Use
Cautionary Statement Regarding
Forward-Looking Statements
Investor, Contact and Feedback
Information
GRI Standard
Disclosure
Page reference and/or direct answers
Omissions
SDG link
UNGC
GRI 305: Emissions
2016
305-1 Direct (Scope 1) GHG emissions
p. 212 - Non-Financial Information, Carbon strategy and energy, Scope 1 CO2 emissions (million
tons) Absolute CO2 from biomass sources= 1.8 million t CO2 (including biomass content of mixed
fuels) Base year: 1990 following best industry practices (e.g. GCCA Protocol).
305-2 Energy indirect (Scope 2) GHG
emissions
p. 212 - Non-Financial Information, Carbon strategy and energy, Scope 2 CO2 emissions (million
tons) Base year:
1990 following best industry practices (e. g. GCCA Protocol).
More information about our Scope 2 emissions can be found in our CDP submission: www.cdp.net
305-3 Other indirect (Scope 3) GHG emissions
p. 212-213 - Non-Financial Information, Carbon strategy and energy, Scope 3 CO2 emissions
(million tons)
305-4 GHG emissions intensity
p. 212 – Non-Financial Information, Carbon Strategy and Energy
Scope 1 specific gross CO2 emissions (kg CO2/ton of cementitious product)
Scope 1 specific net CO2 emissions (kg CO2/ton of cementitious product)
Scope 2 specific CO2 emissions (kgCO2/ton of cementitious product)
305-5 Reduction of GHG emissions
p. 212-213 - Non-Financial Information, Carbon Strategy and Energy
Gases Included: CO2, following GCCA Cement CO2 and Energy Protocol, Version 3.1
Base year: 1990 following best industry practices (e. g. GCCA Protocol)
Air Emissions
GRI 3: Material
Topics 2021
3-3 Management of material topics
p. 53 - Reducing Emissions to Improve Air Quality
Grievances: Any relevant fines or non-compliance cases are included in:
p. 194 - Notes to the consolidated financial statements: 25) Legal proceedings
GRI 305: Emissions
2016
305-7 Nitrogen oxides (NOx), sulfur oxides
(SOx), and other significant air emissions
p. 213-214 - Non-Financial Information, Air quality management
Cemex reports on the air emissions that the ä GCCA Guidelines for Emissions Monitoring and
Reporting in the Cement Industry identifies as the most important from the on-site stationary
sources we use in our processes.
Circular Economy and Waste Management
GRI 3: Material
Topics 2021
3-3 Management of material topics
p. 44-46 - Circular Economy: Repurposing Materials to Minimize Our Environmental Impact
GRI 306: Waste
2020
306-1 Waste generation and significant waste-
related impacts
p. 7-11 - About Cemex
p. 44-46 - Circular Economy: Repurposing Materials to Minimize Our Environmental Impact
In our waste reporting process, we record the volumes and end use/destination of kiln dust in our
filters, bypass, cooler, and/or precipitator that is either re-used within the kiln system or when
leaving the kiln system is subsequently re-cycled, recovered or disposed of as waste. We also
record the volumes and end use/ destination of returned and waste ready-mix concrete.
306-2 Management of significant waste-
related impacts
p. 44-46 - Circular Economy: Repurposing Materials to Minimize Our Environmental Impact
p. 213 - Non-Financial Information, Waste management
306-3 Waste generated
p. 213 - Non-Financial Information, Waste management
GRI 306: Waste
2020
306-4 Waste diverted from disposal
p. 213 - Non-Financial Information, Waste management
306-5 Waste directed to disposal
p. 213 - Non-Financial Information, Waste management
243 Cemex 2024 Integrated Report
Contents
Our Company
Our Strategy
Financial Performance
Environmental Excellence
Stakeholder Engagement
Governance
Appendix
Selected Consolidated Financial
Information
Financial Information
Non-Financial Information
Scope and Boundaries of
This Report
Cemex’s Materiality Assessment
Stakeholder Engagement
Governance
EU Taxonomy
• GRI Content Index
International Sustainability
Standards Board (ISSB)
Sustainability Accounting
Standards Board Response (SASB)
Task Force on Climate-related
Financial Disclosure Response
(TCFD)
Terms We Use
Cautionary Statement Regarding
Forward-Looking Statements
Investor, Contact and Feedback
Information
GRI Standard
Disclosure
Page reference and/or direct answers
Omissions
SDG link
UNGC
Talent Attraction, Retention, and Training
GRI 3: Material
Topics 2021
3-3 Management of material topics
p. 67-75 - Workforce Experience: Investing in Our People to Unlock Their Potential
ä Cemex Human Rights Policy
GRI 401:
Employment 2016
401-1 New employee hires and employee
turnover
p. 210-212 - Non-Financial Information, Our People, Workforce
p. 211- 212 - Non-Financial Information, Our People, Employee Turnover (%), Employee Voluntary
Turnover by gender (%), Employee Voluntary Turnover by age (%), Employee Involuntary
Turnover by gender (%), Employee Involuntary Turnover by age (%), Total new hires (No.), New
hires by gender (%),New hires by age (%),New hires by region (%)
401-2 Benefits provided to full-time employees
that are not provided to temporary or part-
time employees
Number of Countries providing these benefits to Full-Time Employees:
Life Insurance 23, Health Care 23, Disability and invalidity coverage 19, Parental leave 21,
Retirement Provision 19, Stock Ownership 17
Number of Countries providing these benefits to Part-Time Employees:
Life Insurance 6, Health Care 6, Disability and invalidity coverage 5, Parental leave 8, Retirement
Provision 7, Stock Ownership 3
GRI 404: Training
and Education 2016
404-1 Average hours of training per year per
employee
p. 212 - Non-Financial Information, Employee training by gender (average hours/year),
p. 212 - Non-Financial Information, Employee training by position (average hours/year)
4.3, 4.4,
4.5, 5.1,
8.2, 8.5,
10.3
6
404-2 Programs for upgrading employee skills
and transition assistance programs
p. 70 - Continuous Learning Builds Capabilities, Enables Workforce
ä cemexuniversity.com
p. 64 - Social Commitment: Accelerating Our Responsibilities for a Just Transition
8.2, 8.5
GRI 404: Training
and Education 2016
404-3 Percentage of employees receiving
regular performance and career development
reviews
Online executives and employees have access to our Institutional Tool of Performance and Career
development reviews. 75% received feedback of 2024 performance at the end of February 2024.
The feedback process continues through March.
Executives are entitled to an annual “Talent Review” process - 100% of the target audience were
evaluated.
Other employees and operators also receive regular performance and career development
reviews but are not registered in a global tool; in these cases, managers are responsible for
holding feedback and performance review sessions.
Legal prohibitions:
information gathering and
disclosure by gender or
employee category is not
permitted in some countries
where we operate.
5.1, 8.5,
10.3
6
244 Cemex 2024 Integrated Report
Contents
Our Company
Our Strategy
Financial Performance
Environmental Excellence
Stakeholder Engagement
Governance
Appendix
Selected Consolidated Financial
Information
Financial Information
Non-Financial Information
Scope and Boundaries of
This Report
Cemex’s Materiality Assessment
Stakeholder Engagement
Governance
EU Taxonomy
• GRI Content Index
International Sustainability
Standards Board (ISSB)
Sustainability Accounting
Standards Board Response (SASB)
Task Force on Climate-related
Financial Disclosure Response
(TCFD)
Terms We Use
Cautionary Statement Regarding
Forward-Looking Statements
Investor, Contact and Feedback
Information
GRI Standard
Disclosure
Page reference and/or direct answers
Omissions
SDG link
UNGC
Health and Safety/ Employee Well-Being
GRI 3: Material
Topics 2021
3-3 Management of material topics
p. 14-20 - Health and Safety: Our #1 Value and Priority
p. 210 – Non-Financial Information, Health and Safety
ä Health and Safety Policy
GRI 403:
Occupational Health
and Safety 2018
403-1 Occupational health and safety
management system
p. 14-20 - Health and Safety: Our #1 Value and Priority
Cemex’s Health and Safety Policy requires all sites to implement a Health & Safety Management
System that goes beyond local regulation and is based on the OHSAS 18001 standards.
403-2 Hazard identification, risk assessment,
and incident investigation
p. 16 - Health and Safety: Health and Safety Management System
Management of risk is a continuous process and the cornerstone of the Cemex H&S Management
System. We constantly identify hazards and assess the risks associated with our activities. We take
action to manage the risk and prevent or reduce the impact of potential incidents.
Processes are established and promoted to identify hazards associated with Cemex activities and
to assess risks, control the hazard and manage the risks to acceptable levels. Risk assessments
and risk management/ control measures are documented and resulting actions implemented
through local procedures.
403-3 Occupational health services
p. 14-20 - Health and Safety: Our #1 Value and Priority
Health and Safety (H&S) specialists are appointed to assist management and others in the
management of health and safety. H&S specialists possess formal, approved qualifications, are
competent and have experience in Health and Safety disciplines.
Non-Occupational related health checks are offered to all employees.
ä Cemex Global Data Protection and Privacy Policy
8.8
6
403-4 Worker participation, consultation, and
communication on occupational health and
safety
Senior Health & Safety and Executive Management are responsible for ensuring the Cemex HSMS
is reviewed by the appropriate people at enough intervals. This evaluation shall include (but is
not limited to) the review of policies, guidelines, standards, self-assessments, audit results and
achievement of performance targets and objectives.
Outcomes of Management Reviews are communicated to employees through Central and
Regional Management structures. Similarly, employees can use their management structures
to provide feedback and suggestions for improvement. This information is considered by the
relevant Management Committee and incorporated into scheduled HSMS reviews.
97% of the workforce is represented in formal joint management-worker health and safety
committees. Health and Safety committees are managed at a local (country) level.
245 Cemex 2024 Integrated Report
Contents
Our Company
Our Strategy
Financial Performance
Environmental Excellence
Stakeholder Engagement
Governance
Appendix
Selected Consolidated Financial
Information
Financial Information
Non-Financial Information
Scope and Boundaries of
This Report
Cemex’s Materiality Assessment
Stakeholder Engagement
Governance
EU Taxonomy
• GRI Content Index
International Sustainability
Standards Board (ISSB)
Sustainability Accounting
Standards Board Response (SASB)
Task Force on Climate-related
Financial Disclosure Response
(TCFD)
Terms We Use
Cautionary Statement Regarding
Forward-Looking Statements
Investor, Contact and Feedback
Information
GRI Standard
Disclosure
Page reference and/or direct answers
Omissions
SDG link
UNGC
GRI 403:
Occupational Health
and Safety 2018
403-5 Worker training on occupational health
and safety
p. 14 - Our Health and Safety Culture Starts at the Top
p. 15 - Health and Safety Leadership Development Process
p. 18 - Our Programs, Campaigns Keep Health and Safety Top of Mind
p. 20 - Our Holistic Approach to Well-Being: Enriching Quality of Life
ä Health & Safety Academy | Cemex University
Line Managers identify training needs and the competencies necessary for their employees
to carry out their assigned work in a healthy and safe manner. Where high-risk tasks and
occupations are identified, higher levels of training, awareness and competency shall be carried
out. Training is evaluated to determine its effectiveness
Cemex provides H&S training to on-site contractors to ensure all Cemex safety rules, regulations
and site-specific procedures are understood.
403-6 Promotion of worker health
p. 14-20 - Health and Safety: Our #1 Value and Priority
Operations implement proactive health and wellbeing programs and initiatives to encourage
healthy living, both inside and outside of work. Health and wellbeing programs are reviewed
against objectives to assess their effectiveness and to continually improve.
ä Cemex Global Data Protection and Privacy Policy
403-7 Prevention and mitigation of
occupational health and safety impacts
directly linked by business relationships
p. 14-20 - Health and Safety: Our #1 Value and Priority
Processes are established and promoted to identify hazards associated with Cemex activities and to
assess risks, control the hazard and manage the risks to acceptable levels. Risk assessments and risk
management/ control measures are clearly documented and resulting actions implemented through
local procedures. Risk assessments are reviewed and updated at specified intervals, as changes are
planned or where there is any reason to believe they are no longer valid.
403-8 Workers covered by an occupational
health and safety management system
p. 210 - Non-Financial Information, Health and Safety, Sites with a Health and Safety
Management System implemented (%)
Cemex’s Health and Safety Policy requires all sites to implement a Health & Safety Management
System that goes beyond local regulation and is based on the OHSAS 18001 standards.
403-9 Work-related injuries
p. 17 - Our Zero4Life Commitment: Zero Injuries Across Our Business
p. 210 - Non-Financial Information, Health and Safety, Fatalities
p. 210 - Non-Financial Information, Health and Safety, Employee fatality rate
p. 210 - Non-Financial Information, Health and Safety, Lost time injuries (LTIs)
p. 210 - Non-Financial Information, Health and Safety, Lost time injury frequency rate (LTI FR)
8.8
403-10 Work-related ill health
Processes are established and promoted to identify hazards associated with Cemex activities and
to assess risks, control the hazard and manage the risks to acceptable levels. This includes but is
not limited to Cemex Global Health and Safety Standards
Diversity, Equity, and Inclusion
GRI 3: Material
Topics 2021
3-3 Management of material topics
p. 74-75 Embracing Diversity: One of Our Essential Cultural Drivers
p. 115 - Reporting and Investigations
p. 128 - Respect for Human Rights Is Embedded in Our Business
ä Code of Ethics and Business Conduct
ä Cemex Human Rights Policy
246 Cemex 2024 Integrated Report
Contents
Our Company
Our Strategy
Financial Performance
Environmental Excellence
Stakeholder Engagement
Governance
Appendix
Selected Consolidated Financial
Information
Financial Information
Non-Financial Information
Scope and Boundaries of
This Report
Cemex’s Materiality Assessment
Stakeholder Engagement
Governance
EU Taxonomy
• GRI Content Index
International Sustainability
Standards Board (ISSB)
Sustainability Accounting
Standards Board Response (SASB)
Task Force on Climate-related
Financial Disclosure Response
(TCFD)
Terms We Use
Cautionary Statement Regarding
Forward-Looking Statements
Investor, Contact and Feedback
Information
GRI Standard
Disclosure
Page reference and/or direct answers
Omissions
SDG link
UNGC
GRI 405: Diversity
and Equal
Opportunity 2016
405-1 Diversity of governance bodies and
employees
p. 74 - DEI Framework
p. 94-102 Our Board of Directors
p. 103-105 - Board Committees
p. 106-108 - Executive Committee
p. 210-212 - Non-Financial Information, Our people
5.5, 8.5
6
405-2 Ratio of basic salary and remuneration
of women to men
p. 210 - Non-Financial Information, Women to men remuneration ratio by region
p. 211 - Non-Financial Information, Women to men remuneration ratio by position
These calculations include all countries where Cemex operates.
8.5, 10.3
6
GRI 406: Non-
discrimination 2016
406-1 Incidents of discrimination and
corrective actions taken
p. 115 - Reporting and Investigations
ETHOS instances received 54 reports related to discrimination. For 8 of the reports, we were able
to confirm that discrimination occurred, and 57 other accusations were false, 9 are still in process at
the moment of this report. In all the reports received, measures are implemented and monitored by
local ethics committees comprising high level executives from the local business unit.
5.1, 8.8
6
Human Rights
GRI 3: Material
Topics 2021
3-3 Management of material topics
p. 115 - Reporting and Investigations
p. 128 - Respect for Human Rights Is Embedded in Our Business
p. 21 - Stakeholder Alignment: Placing People at the Center of Every Business Decision
p. 224-225 - How We Engage With Our Stakeholders
ä Cemex Human Rights Policy
ä Code of Ethics and Business Conduct
ä Code of Conduct when doing Business with Us
ä Sourcing Approach
GRI 407: Freedom
of Association
and Collective
Bargaining 2016
407-1 Operations and suppliers in which the
right to freedom of association and collective
bargaining may be at risk
No material risks to freedom of association or collective bargaining were identified.
p. 211 - Non-Financial Information - Employees covered by a collective bargaining agreement by
region (%)
8.8
3
GRI 408: Child Labor
2016
408-1 Operations and suppliers at significant
risk for incidents of child labor
No risks of this kind were identified. At Cemex we are strongly committed to protecting and
respecting the rules regarding child labor in every country we operate. Our company policy is to
only hire people who are 18 or older. Our selection and hiring process requires the presentation of
government-issued identification, as well as a rigorous investigation of the person’s information.
This process also extends to our contracted labor suppliers.
8.7, 16.2
5
GRI 409: Forced or
Compulsory Labor
2016
409-1 Operations and suppliers at significant
risk for incidents of forced or compulsory
labor
By policy, no person working in Cemex should be forced to perform hazardous tasks against their
will or tasks that are detrimental to their health or well-being. All our employees are free to leave
the company anytime and we do not offer any benefit used as a leverage to force labor
8.7
4
GRI 410: Security
Practices 2016
410-1 Security personnel trained in human
rights policies or procedures
Training sessions were conducted with employees regarding policies and procedures related to
human rights, harassment and Code of Ethics. Part of this training goes to security personnel as we
do not differentiate per type of employee while implementing our Human Rights training program.
16.1
1
GRI 411: Rights of
Indigenous Peoples
2016
411-1 Incidents of violations involving rights of
indigenous peoples
We are not aware that any violations involving rights of indigenous people have taken place in our
operations
2.3
1
247 Cemex 2024 Integrated Report
Contents
Our Company
Our Strategy
Financial Performance
Environmental Excellence
Stakeholder Engagement
Governance
Appendix
Selected Consolidated Financial
Information
Financial Information
Non-Financial Information
Scope and Boundaries of
This Report
Cemex’s Materiality Assessment
Stakeholder Engagement
Governance
EU Taxonomy
• GRI Content Index
International Sustainability
Standards Board (ISSB)
Sustainability Accounting
Standards Board Response (SASB)
Task Force on Climate-related
Financial Disclosure Response
(TCFD)
Terms We Use
Cautionary Statement Regarding
Forward-Looking Statements
Investor, Contact and Feedback
Information
GRI Standard
Disclosure
Page reference and/or direct answers
Omissions
SDG link
UNGC
Customer Relationships
GRI 3: Material
Topics 2021
3-3 Management of material topics
p. 76 - Customer Centricity: Driving a Superior Customer Experience
H&S is considered in every phase of product development, from design to disposal. We are
committed to abiding by all applicable legislation and H&S requirements when designing our
products and have developed Material Safety Data Sheets that describe potential hazards and
precautions to take when handling each of our products. Proud of our work, we promote a strong
H&S culture.
Resilient buildings and infrastructures
GRI 3: Material
Topics 2021
3-3 Management of material topics
p. 90-91 - Built Environment
Innovation, technology & cybersecurity
GRI 3: Material
Topics 2021
3-3 Management of material topics
p. 54 - Innovation and Partnerships: Catalyzing Innovation Across Our Business and Industry
p. 70 - Continuous Learning Builds Capabilities, Enables Workforce
p. 77 - Enhanced Knowledge Enriches Customer Experience
p. 78 - Digital Solutions: Key to Superior Customer Experience
p. 124 - Cyberthreats and Information Technology Risks
Sustainable corporate finance
GRI 3: Material
Topics 2021
3-3 Management of material topics
p. 28 - Sustainable Finance
248 Cemex 2024 Integrated Report
Contents
Our Company
Our Strategy
Financial Performance
Environmental Excellence
Stakeholder Engagement
Governance
Appendix
Selected Consolidated Financial
Information
Financial Information
Non-Financial Information
Scope and Boundaries of
This Report
Cemex’s Materiality Assessment
Stakeholder Engagement
Governance
EU Taxonomy
GRI Content Index
• International Sustainability
Standards Board (ISSB)
Sustainability Accounting
Standards Board Response (SASB)
Task Force on Climate-related
Financial Disclosure Response
(TCFD)
Terms We Use
Cautionary Statement Regarding
Forward-Looking Statements
Investor, Contact and Feedback
Information
Topic
Reference location and pages
IFRS S1 General Requirements for Disclosure of Sustainability-related Financial Information
Governance
Governance body responsible
p. 103-105 - Board Committes
p. 226 - Board of Directors Skills Matrix
p. 252-269 - Task Force on Climate-Related Financial Disclosure Response (TCFD)
Management role
p. 252-269 - Task Force on Climate-Related Financial Disclosure Response (TCFD)
Strategy
Sustainability-related risks and opportunities
p. 118-127 - Main Strategic Risks and Mitigation Strategies
p. 252-269 - Task Force on Climate-Related Financial Disclosure Response (TCFD)
Business model and value chain
p. 118-127 - Main Strategic Risks and Mitigation Strategies
Strategy and decision-making
p. 118-127 - Main Strategic Risks and Mitigation Strategies
Financial position, financial performance and cash flows
Not disclosed
Resilience
Not disclosed
Risk management
Risk management
p. 118-127 - Risk and Opportunity Management
p. 13 - Our Value Creation Model
p. 118-127 - Main Strategic Risks and Mitigation Strategies
Metrics and targets
Metrics and targets
p. 210-215 - Non-financial Information
p. 250-251 - Sustainability Accounting Standards Board Response (SASB)
IFRS S2 Climate-related Disclosures
Governance
Governance body responsible
p. 103-105 - Board Committees
p. 226 - Board of Directors Skills Matrix
p. 252-269 - Task Force on Climate-Related Financial Disclosure Response (TCFD)
Management role
p. 103-105 - Board Committees
p. 252-269 - Task Force on Climate-Related Financial Disclosure Response (TCFD)
International Sustainability
Standards Board (ISSB) Index
This report partially applies the IFRS Sustainability Disclosure Standards IFRS S1 and IFRS S2 as issued
by the International Sustainability Standards Board (ISSB). Cemex plans to achieve full compliance
with IFRS Sustainability Disclosure Standards when sufficient sustainability data becomes available,
and after it has further refined its control systems and processes for sustainability disclosure.
Cemex is proudly part of the IFRS Corporate Champions Program, and we are working towards the
evolution of our disclosure and adoption of the IFRS standards. We support the ISSB in its aim to develop
consistent, comparable and reliable global sustainability standards.
249 Cemex 2024 Integrated Report
Contents
Our Company
Our Strategy
Financial Performance
Environmental Excellence
Stakeholder Engagement
Governance
Appendix
Selected Consolidated Financial
Information
Financial Information
Non-Financial Information
Scope and Boundaries of
This Report
Cemex’s Materiality Assessment
Stakeholder Engagement
Governance
EU Taxonomy
GRI Content Index
• International Sustainability
Standards Board (ISSB)
Sustainability Accounting
Standards Board Response (SASB)
Task Force on Climate-related
Financial Disclosure Response
(TCFD)
Terms We Use
Cautionary Statement Regarding
Forward-Looking Statements
Investor, Contact and Feedback
Information
Topic
Reference location and pages
IFRS S2 Climate-related Disclosures (continued)
Strategy
Climate-related risks and opportunities
p. 252-269 - Task Force on Climate-Related Financial Disclosure Response (TCFD)
Business model and value chain
p. 252-269 - Task Force on Climate-Related Financial Disclosure Response (TCFD)
Strategy and decision-making
p. 38-43 - Decarbonizing Our Operations: Moving Rapidly to Achieve Our Ambitious Goals
p. 252-269 - Task Force on Climate-Related Financial Disclosure Response (TCFD)
p. 32-34 - Future in Action: Achieving Decarbonization Targets Toward a Net-Zero Future
p. 31-65 - Environmental Excellence
Financial position, financial performance and cash flows
p. 252-269 - Task Force on Climate-Related Financial Disclosure Response (TCFD)
Climate resilience
p. 252-269 - Task Force on Climate-Related Financial Disclosure Response (TCFD)
Risk management
Risk management
p. 117-118 - Risk and Opportunity Management
p. 252-269 - Task Force on Climate-Related Financial Disclosure Response (TCFD)
p. 13 - Our Value Creation Model
p. 118-127 - Main Strategic Risks and Mitigation Strategies
Metrics and targets
Greenhouse gases
p. 210-215 - Non-Financial Information
p. 252-269 - Task Force on Climate-Related Financial Disclosure Response (TCFD)
p. 220-221 - Scope and Boundaries of This Report
Climate-related transition risks, physical risks, and opportunities
p. 252-269 - Task Force on Climate-Related Financial Disclosure Response (TCFD)
Capital deployment
p. 32-34 - Future in Action: Achieving Decarbonization Targets Toward a Net-Zero Future
Internal carbon prices
p. 252-269 - Task Force on Climate-Related Financial Disclosure Response (TCFD)
Remuneration
p. 109 - Executive Compensation
p. 252-269 - Task Force on Climate-Related Financial Disclosure Response (TCFD)
Industry-based metrics
p. 250-251 Sustainability Accounting Standards Board Response (SASB)
Climate-related targets
p. 38-43 - Decarbonizing Our Operations: Moving Rapidly to Achieve Our Ambitious Goals
p. 252-269 - Task Force on Climate-Related Financial Disclosure Response (TCFD)
p. 103-105 - Board Committees
Climate-related targets - Carbon credits
p. 252-269 - Task Force on Climate-Related Financial Disclosure Response (TCFD)
IFRS S2 Industry-based Guidance on implementing Climate-related Disclosures Volume 8 - Construction Materials
Metrics and targets
p. 250-251 Sustainability Accounting Standards Board Response (SASB)
250 Cemex 2024 Integrated Report
Contents
Our Company
Our Strategy
Financial Performance
Environmental Excellence
Stakeholder Engagement
Governance
Appendix
Selected Consolidated Financial
Information
Financial Information
Non-Financial Information
Scope and Boundaries of
This Report
Cemex’s Materiality Assessment
Stakeholder Engagement
Governance
EU Taxonomy
GRI Content Index
International Sustainability
Standards Board (ISSB)
• Sustainability Accounting
Standards Board Response (SASB)
Task Force on Climate-related
Financial Disclosure Response
(TCFD)
Terms We Use
Cautionary Statement Regarding
Forward-Looking Statements
Investor, Contact and Feedback
Information
Sustainability Accounting Standards
Board - Content Index
In 2019, we started reporting aligned to the Sustainability Accounting Standard Board (SASB) for the applicable industry-specific requirements.
This content index is aligned with the most recent guidelines published in 2023 for the Construction Materials industry standard.
CM – Construction Materials Industry Standard
SASB Code
Metric
Unit of measure
Reference
EM-CM-000.A
Production by major product line
Metric tons (t)
p. 7-8 – Cemex Overview
Greenhouse Gas Emissions
EM-CM-110a.1
Gross global Scope 1 emissions
Metric tons (t) CO2-e
p. 38-43 – Decarbonizing Our Operations: Moving Rapidly to
Achieve Our Ambitious Goals
p. 212 – Non-Financial Information – Scope 1 CO2 gross emissions
EM-CM-110a.1
Percentage covered under emissions-limiting regulations
Percentage (%)
p. 220-221 – Scope and Boundaries of this Report
EM-CM-110a.2
Discussion of long-term and short-term strategy or plan to manage Scope 1
emissions, emissions reduction targets, and an analysis of performance against
those targets
n/a
p. 32-34 – Future in Action: Achieving Decarbonization Targets
Toward a Net-Zero Future
p. 38-43 – Decarbonizing Our Operations: Moving Rapidly to
Achieve Our Ambitious Goals
Air Quality
EM-CM-120a.1
Air emissions of the following pollutants:
(1) NOx (excluding N2O), (2) SOx, (3) particulate matter (PM10), (4) dioxins/furans,
(5) volatile organic compounds (VOCs), (6) polycyclic aromatic hydrocarbons
(PAHs) and (7) heavy metals
Metric tons (t)
p. 53 – Water, Biodiversity, and Air Quality: Building a Nature-
Positive Future and Reducing Emissions to Improve Air Quality
p. 213-214 – Non-Financial Information – Air Quality Management
Energy Management
EM-CM-130a.1
(1) Total energy consumed
GWh
p. 42 – Decarbonizing Our Operations: Moving Rapidly to Achieve
Our Ambitious Goals - Scope 2: Cemex Reduces its Electricity
Emissions
p. 212-213 – Non-Financial Information – Carbon Strategy and
Energy
(2) Percentage grid electricity
Percentage (%)
p. 212-213 – Non-Financial Information – Carbon Strategy and
Energy
(3) Percentage alternative
Percentage (%)
(4) Percentage renewable
Percentage (%)
Water Management
EM-CM-140a.1
(1) Total water withdrawn
Million cubic meters (million m3)
p. 47-48 – Water, Biodiversity and Air Quality: Building a Nature-
Positive Future - Protecting Humanity’s Most Precious Resource:
Water
p. 214 – Non-Financial Information – Water Management
(2) Total water consumed
Million cubic meters (million m3)
Percentage of each in regions with High or Extremely High Baseline Water Stress
Percentage (%)
251
Cemex 2024 Integrated Report
Contents
Our Company
Our Strategy
Financial Performance
Environmental Excellence
Stakeholder Engagement
Governance
Appendix
Selected Consolidated Financial
Information
Financial Information
Non-Financial Information
Scope and Boundaries of
This Report
Cemex’s Materiality Assessment
Stakeholder Engagement
Governance
EU Taxonomy
GRI Content Index
International Sustainability
Standards Board (ISSB)
• Sustainability Accounting
Standards Board Response (SASB)
Task Force on Climate-related
Financial Disclosure Response
(TCFD)
Terms We Use
Cautionary Statement Regarding
Forward-Looking Statements
Investor, Contact and Feedback
Information
CM – Construction Materials Industry Standard
Waste Management
EM-CM-150a.1
Amount of waste generated
Thousand metric tons
p. 44-46 – Circular Economy: Repurposing Materials to Minimize
Our Environmental Impact
p. 213 – Non-Financial Information – Waste Management
Percentage hazardous
Percentage (%)
Percentage recycled
Percentage (%)
SASB Code
Metric
Unit of measure
Reference
Biodiversity Impacts
EM-CM-160a.1
Description of environmental management policies and practices for active sites
n/a
p. 53 – Water, Biodiversity and Air Quality:
Building a Nature-Positive Future – Environmental Stewardship
Includes Compliance Standards
p. 215 - Non-Financial Information – Biodiversity Management
EM-CM-160a.2
Terrestrial land area disturbed
Hectares (ha)
Percentage of impacted area restored
Percentage (%)
Workforce Health & Safety
EM-CM-320a.1
(1) Total recordable incident rate (TRIR) for direct employees and contract
employees
Rate
p. 14-20 - Health and Safety: Our #1 Value and Priority
p. 210 - Non-Financial Information – Health and Safety
Product Innovation
EM-CM-410a.1
Percentage of products that qualify for credits in sustainable building design and
construction certifications
Percentage (%)
p. 35-37 – Sustainable Products and Solutions: Expanding the
Sustainability Features of Our Products
p. 212 - Non-Financial Information – Sustainable Construction
EM-CM-410a.2
Total addressable market and share of market for products that reduce energy,
water or material impacts during usage or production
Percentage (%)
252 Cemex 2024 Integrated Report
Contents
Our Company
Our Strategy
Financial Performance
Environmental Excellence
Stakeholder Engagement
Governance
Appendix
Selected Consolidated Financial
Information
Financial Information
Non-Financial Information
Scope and Boundaries of
This Report
Cemex’s Materiality Assessment
Stakeholder Engagement
Governance
EU Taxonomy
GRI Content Index
International Sustainability
Standards Board (ISSB)
Sustainability Accounting
Standards Board Response (SASB)
• Task Force on Climate-related
Financial Disclosure Response
(TCFD)
Terms We Use
Cautionary Statement Regarding
Forward-Looking Statements
Investor, Contact and Feedback
Information
Task Force on Climate-Related
Financial Disclosure Response
(TCFD)
We support the recommendations of the Task Force on Climate-related
Financial Disclosures (TCFD), which was established by the Financial
Stability Board (FSB). TCFD recommendations provide a useful framework
to increase transparency on climate-related risks and opportunities within
financial markets and are an important step towards achieving the goals
outlined in the Paris Agreement, supporting the global transition to a low-
carbon and climate-resilient economy. In addition, this report complements
our voluntary application of the IFRS Sustainability Disclosure Standards
issued by the International Sustainability Standards Board (ISSB).
Governance1
Disclose the organization’s governance around climate-related risks and opportunities.
a) Describe the board’s oversight of climate-related risks and opportunities.
Our Board of Directors is ultimately responsible for supervising the overall operation of our
company and is composed of qualified executives who provide appropriate oversight2.
Chaired by Rogelio Zambrano, our Board of Directors consists of 13 directors, 10 of whom
qualify as independent directors according to criteria specified under the Mexican Securities
Markets Law (Ley del Mercado de Valores)1. During 2024, our Board of Directors met five
times to discuss and consider a wide range of relevant issues, including sustainability and
climate-related concerns and financial strategy, with a board meeting attendance of
approximately 98%.
Our Board Committees include the Corporate Practices and Finance Committee, the Audit
Committee, and the Sustainability, Climate Action, Social Impact and Diversity Committee3 .
The Sustainability, Climate Action, Social Impact and Diversity Committee provides
board-level oversight of our sustainability and climate action strategy. The Committee is
currently comprised of four members of the Board of Directors, which are approved by our
shareholders at Cemex’s shareholders meeting considering their skills and competences2.
During 2024, the Committee met four times with a meeting attendance of approximately 94%.
The sessions of the Committee are usually briefed by the Vice President of Global
Sustainability. These briefings include in-depth reviews of previously defined topics as well
as unforeseen recent developments that are considered material enough to be brought
to the Board’s attention or that require guidance from the Sustainability, Climate Action,
Social Impact and Diversity Committee. The Committee also reviews and discusses Cemex’s
Sustainability Risk and Opportunity Agenda at least once a year. This Sustainability Risk and
Opportunity Agenda identifies key sustainability related risks and opportunities that could
impact Cemex’s sustainability priorities, including but not limited to our Future in Action
program, our global climate action program to rapidly transform our business through
climate action, developing, lower-carbon products, solutions, and processes to become a
net-zero CO2 company by 2050.
The Committee members are responsible for providing insights and direction on managing
these sustainability and climate risks and opportunities, and strategy seeking alignment with
Cemex’s overall management strategy.
The main responsibilities of the Sustainability, Climate Action, Social Impact and Diversity
Committee of the Board of Directors are:
• Overseeing sustainability, social impact, and diversity policies, strategies, goals and programs;
• Supporting and overseeing the implementation of our Human Rights program, including
our Human Rights Policy;
• Evaluating the effectiveness of sustainability and climate action, social impact, and
diversity programs, goals and initiatives;
• Identifying the main risks and opportunities concerning sustainability-related matters
(including human rights) and overseeing mitigating actions;
• Providing assistance to the Chief Executive Officer and senior management team
regarding the strategic direction on sustainability and social responsibilities model; and
• Providing assistance to the Corporate Practices and Finance Committee as needed on
diversity matters.
1 As of December 31, 2024.
2 For more information on our Board of Directors’ expertise, please refer to the Cemex Board of Directors Skills Matrix section in page 226
of our 2024 Integrated Report.
3 For more information about our Board Committees, please refer to our 2024 Integrated Report, page 103-105, or our latest annual
report filed on Form 20-F.
253 Cemex 2024 Integrated Report
Contents
Our Company
Our Strategy
Financial Performance
Environmental Excellence
Stakeholder Engagement
Governance
Appendix
Selected Consolidated Financial
Information
Financial Information
Non-Financial Information
Scope and Boundaries of
This Report
Cemex’s Materiality Assessment
Stakeholder Engagement
Governance
EU Taxonomy
GRI Content Index
International Sustainability
Standards Board (ISSB)
Sustainability Accounting
Standards Board Response (SASB)
• Task Force on Climate-related
Financial Disclosure Response
(TCFD)
Terms We Use
Cautionary Statement Regarding
Forward-Looking Statements
Investor, Contact and Feedback
Information
The President of the Sustainability, Climate Action, Social Impact and Diversity Committee
is the primary responsible person for the oversight of the Climate Action Strategy in Cemex
and is an independent member of our Board of Directors. On March 26, 2020, Cemex,
S.A.B. de C.V. held an ordinary general shareholders’ meeting in which the shareholders
for the first time approved the appointment of the members of the Sustainability, Climate
Action, Social Impact and Diversity Committee (then known as the Sustainability Committee),
elevating the appointment of the members of the Committee from Board of Directors level
to shareholder level. The responsibilities of the President of the Committee include, among
others, the implementation of Cemex’s Future in Action program and the revision and
resources assurance of the CO2 Reduction Roadmap initiatives.
In 2024, the Sustainability, Climate Action, Social Impact and Diversity Committee
meetings included the following climate change related topics:
• Review of key sustainability performance indicators (e.g., climate action, reduction
of CO2 emissions, H&S, water, biodiversity, air quality, circular economy, social impact),
of benchmarking with industry peers, and of Cemex’s ESG rankings and ratings;
• Review of the 2024-2025 sustainability risk agenda;
• Review of Cemex’s Future in Action six pillars and the progress in achieving Cemex’s
sustainability objectives for 2025 and 2030;
• Inclusion in the financial statements of notes related to Cemex’s climate action,
as well as on CO2 emissions and sustainable financing;
• Discussion of the sustainability strategy in the United States and South,
Central America and the Caribbean;
• Review of the communication strategy in sustainability issues.
The Sustainability, Climate Action, Social Impact and Diversity Committee discussions in
2024 were enriching and led to valuable outcomes related to climate change, such as:
• Record-breaking CO2 reduction in Cemex since the launch of the Future in Action program.
• Maintained our utilization of alternative fuels with biomass content and further
decreased our clinker factor.
• Future in Action program enhancement.
• Achievement of the 2025 targets of 50% cement and ready-mix sales of
Vertua® products one year ahead.
• Deeper analysis of ESG risks and opportunities, especially climate-related.
• Continued focus on disclosure compliance in respect of ESG-related matters.
• Become the first company in the cement industry to provide environmental impact
information, including CO2 emissions, for its core products.
ä To know more about our climate-related achievements in 2024,
please refer to page 10 in our 2024 Integrated Report.
b) Describe management’s role in assessing and managing climate-related risks and
opportunities.
At the executive level, our CEO and members of our Executive Committee (ExCo) oversee
the day-to-day operation of our company. They guide the implementation of our global
business strategy. On a monthly basis, the ExCo reviews the progress and performance of
our Future in Action program.
The Vice President of Global Sustainability, reporting directly to Cemex’s CEO, coordinates
and executes the sustainability and climate change strategy of the company. The Vice
President of Global Sustainability oversees the integration and progress of all sustainability-
related initiatives and targets across all the company, including the climate-related. This
is achieved through the support of the Sustainability department, which has leadership in
each operating region to facilitate coordination with other functions that contribute to this
strategy. This role also involves consolidating sustainability efforts and mitigating potential
risks across all business units.
The responsibilities of the Vice President of Global Sustainability as the management role
with respect to climate change include:
• Monitoring the company’s performance in terms of sustainability, including metrics of
our Future in Action program, CO2 emissions and other related climate KPIs;
• Monitoring of the company’s global sustainability and climate strategy, including our CO2
roadmap implementation and resources assurance for the execution of the reduction
initiatives and presentation to the ExCo and Board for approval;4
• Coordination of the Future in Action program and its related sustainability and climate
initiatives and targets;
• Assessment of sustainability and climate-related risks and opportunities together with
the Enterprise Risk Management function;
• Reviewing the sustainability risk agenda, considering residual risks (including climate-
related risks and opportunities) over the short, medium and long term, and presenting
it to the Board;
• Climate-related targets definition and implementation and sustainability initiatives for
approval by the Executive Committee and Board of Directors.
4 For more information on our risk prioritization, please refer to the Risk Management section of this TCFD report.
254 Cemex 2024 Integrated Report
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Our Strategy
Financial Performance
Environmental Excellence
Stakeholder Engagement
Governance
Appendix
Selected Consolidated Financial
Information
Financial Information
Non-Financial Information
Scope and Boundaries of
This Report
Cemex’s Materiality Assessment
Stakeholder Engagement
Governance
EU Taxonomy
GRI Content Index
International Sustainability
Standards Board (ISSB)
Sustainability Accounting
Standards Board Response (SASB)
• Task Force on Climate-related
Financial Disclosure Response
(TCFD)
Terms We Use
Cautionary Statement Regarding
Forward-Looking Statements
Investor, Contact and Feedback
Information
Link to remuneration
Cemex has established a consistent set of targets for achieving specific net CO2 emissions
(kg CO2/ton of cementitious product) at regional, national, and plant levels, and these are
linked to our publicly disclosed 2030 targets. These targets are a mandatory part of the
performance evaluation for the CEO, Executive Committee members (regional level), and
Country Managers (business unit level) and are transmitted in a top-to-bottom manner
across the organization.
As part of this effort, all regional cement operations leaders and cement plant heads are
required to assign at least 20% of their individual performance results weighting to the
achievement of their specific CO2 emissions target as part of their variable compensation.
Since 2022, and to strive for progress of our 2030 target, Cemex’s Executive Variable
Compensation Plan includes a CO2 Emissions Component related to carbon reduction
goals that could have an impact ranging from -10% to +10% in the total cash payout of
the annual Variable Compensation Plan. In March 2022, the Variable Compensation
Plan was expanded to cover more than 4,400 executives, including our CEO and senior
management. During 2024, the variable compensation payment to employees was
US$130.5 million.
Board Committees
Board of Directors is aided by three committees with
specialized areas of expertise meeting quarterly.
Audit Committee
Corporate Practices and Finance Committee
Sustainability, Climate Action, Social Impact
and Diversity Committee
Oversight on Climate Action and CO2 Management
Strategy, Sustainability, Social matters and DEI.
In-depth assessments as well as unforeseen recent
developments considered material are reviewed.
Board of Directors
Ultimately responsible for supervising the overall
company operation. Meets at least 4 times a year to
report on a wide range of relevant issues, including
sustainability-related concerns and financial strategy.
Global Sustainability Vice President
Coordinates the definition and execution
of the Sustainability and Climate Change
strategy along with other company
functions related to it, and the
Sustainability department of the company.
Executive Committee
Climate-related progress and performance is
reviewed on a monthly basis and provides
feedback and adjustment if required.
CEO
Assists the Board to develop, refine and
implement Cemex’s strategy
Other EVP*
Region Presidents
Regional Sustainability
Coordinators
*Enterprise Risk Management included in the Executive Vice President of Corporate Affairs, Enterprise Risk Management and Social Impact
255 Cemex 2024 Integrated Report
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Financial Performance
Environmental Excellence
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Appendix
Selected Consolidated Financial
Information
Financial Information
Non-Financial Information
Scope and Boundaries of
This Report
Cemex’s Materiality Assessment
Stakeholder Engagement
Governance
EU Taxonomy
GRI Content Index
International Sustainability
Standards Board (ISSB)
Sustainability Accounting
Standards Board Response (SASB)
• Task Force on Climate-related
Financial Disclosure Response
(TCFD)
Terms We Use
Cautionary Statement Regarding
Forward-Looking Statements
Investor, Contact and Feedback
Information
Strategy
Disclose the actual and potential impacts of climate-related risks and opportunities on
the organization’s businesses, strategy, and financial planning where such information
is material.
a) Describe the climate-related risks and opportunities the organization has identified
over the short, medium, and long term.
b) Describe the impact of climate-related risks and opportunities on the organization’s
businesses, strategy, and financial planning.
Our risks and opportunities are measured and assessed taking into consideration Cemex’s
time horizons definition as short-term, medium-term, and long-term as follows:
Short-term
Medium-term
Long-term
1 year
5 years
+5 years
This time horizons are aligned with Cemex’s strategic planning decisions and are used as
reference for this climate-related risks and opportunities assessment.
Cemex assesses climate-related risks and opportunities into two main categories: transition,
which refer to the potential impacts of moving into a low-carbon economy; and physical,
which refer to potential weather events that could directly affect our assets and operations.
The following is a brief description of some of the main short, medium and long-term
climate-related risks and opportunities faced by Cemex, including information and details
related to the effects of these on the business strategy and decision making, mitigation
actions, and financial effects:
Risk: Transition – Policy
Time horizon effects: Short-medium term
Description
Cemex is subject to a growing number of CO2 regulations aiming to incentivize CO2 emissions
reduction. In jurisdictions with carbon regulation in place, such regulations often manage CO2
pricing in the form of cap-and-trade systems, particularly in Europe and some states in the U.S. In
other geographies, new or stricter CO2 regulations are under discussion or development and could
imply a higher CO2 cost for Cemex in the short- and medium-term, for example, in the form of
emission trading systems or CO2 taxes. Unclear CO2 regulations could result in double regulations.
For instance, an entity may be subject to a cap-and-trade scheme as well as an emissions tax, which
may have inconsistent or overlapping policy objectives.
Likewise, the unequal application of a CO2 pricing mechanism between local and foreign producers
could cause competitive disadvantages. On the other hand, government policies that incentivize
the use of alternative technologies to reduce CO2 emissions (e.g., circular economy practices) are
not advancing at the required pace or at the same pace in all geographies in which we operate,
which may slow down the reduction of CO2 emissions.
Current and anticipated effects on business model and value chain
Effects on strategy and decision-making
Current and anticipated financial effects
We are experiencing increased costs in our direct operations and
value chain in countries with existing Emissions Trading Systems
(ETS), including our European operations, California in the USA,
and we expect in the future to increase our costs in Mexico which is
currently in the pilot phase as of the date of this report. Additionally,
higher costs are arising in countries with carbon taxes, such as several
Mexican states and Colombia.
Cemex fully supports the implementation of the Paris Agreement and
collaborates with governments worldwide to define and implement
Nationally Determined Contributions (NDCs). Whether driven by such
NDCs or otherwise, there is an increasing amount of climate-related
regulations across the jurisdictions in which we operate. Even small
changes to free allocation of carbon allowances to our installations,
overall scarcity of allowances, or the level of taxes, for example, can
have significant implications for Cemex.
At Cemex, we have our cement plant-by-plant CO2 Roadmap, which includes
all the initiatives to reduce CO2 needed to accomplish our 2030 targets. We
have identified, evaluated and prioritized more than 400 initiatives to execute
during this decade, including the switch to alternative fuels, specifically
biomass, clinker substitutes and the use of decarbonated raw materials. The
initiatives are calendarized and their implementation is monitored in a monthly
basis by the CEO and ExCo. We also participate in the development of CCUS
(Carbon Capture Utilization and Storage) technology as a long-term solution
beyond 2030.
Additionally, as part of our strategy, we have implemented robust advocacy
efforts across the geographies where we operate. In Mexico, we collaborate
with the Mexican government through CANACEM to review the expected ETS
regulations; in the SCA&C region, we collaborate with FICEM to assess the
economic and emissions impact of carbon tax regulations versus ETS.
Increased costs resulting from regulation
and carbon pricing, potentially exacerbated
by competitive pressure from imports from
countries with less stringent CO2 regulations,
and penalties for non-compliance with laws and
regulations could have a material adverse effect
on our business, financial condition, and results
of operations.
An increase in production costs is already
impacting on our operating expenses,
particularly in our European cement operations
and in California, due to regulatory changes.
256 Cemex 2024 Integrated Report
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Environmental Excellence
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Selected Consolidated Financial
Information
Financial Information
Non-Financial Information
Scope and Boundaries of
This Report
Cemex’s Materiality Assessment
Stakeholder Engagement
Governance
EU Taxonomy
GRI Content Index
International Sustainability
Standards Board (ISSB)
Sustainability Accounting
Standards Board Response (SASB)
• Task Force on Climate-related
Financial Disclosure Response
(TCFD)
Terms We Use
Cautionary Statement Regarding
Forward-Looking Statements
Investor, Contact and Feedback
Information
Risk: Transition – Technology
Time horizon effects: Long term
Description
The development and scaling of new technologies are essential to reducing CO2 emissions and
meeting our 2050 Net-Zero CO2 emissions target, the sustainability-related key performance
indicators (KPIs) in our financing arrangements, and the limits of any cap-and-trade systems
applicable to Cemex. However, some CO2 reduction technologies still require validation in terms of
technical feasibility, viability, and scalability. Developing breakthrough technologies also requires
significant capital investment.
Failure to effectively select, develop deploy, or invest in the necessary technologies, or delays
in their implementation, could prevent Cemex from achieving its 2050 Net-Zero CO2 emissions
target and complying with limits under cap-and-trade systems to which Cemex is subject and
sustainability-related KPIs in its financial agreements. It could also result in failure to meet stake-
holders’ expectations. Furthermore, delays or shortcomings in developing sustainability-related
technologies may limit the range of eligible projects for certain financing proceeds and reduce the
effectiveness of those investments.
Current and anticipated effects on business model and value chain
Effects on strategy and decision-making
Current and anticipated financial effects
We face increased costs due to the development and deployment of
new technologies for products, solutions and implementation across
direct operations and upstream and downstream value chains.
The process to secure government funding is highly competitive,
and economic or regulatory incentives for developing and testing
these technologies are not available in all geographies.
Cemex, through our Global R&D department and Cemex Ventures, constantly
evaluates and assesses new climate-related and lower-carbon technologies,
whether proprietary or external. We collaborate with startups, universities,
industry players and partners from other industries. Some of our R&D
initiatives include low-CO2 clinker and carbon capture, utilization, and storage
(CCUS) projects. We work under the EU H2020 scheme and the EU Innovation
Fund and also collaborate with the National Petroleum Council (NPC) in the
U.S. on CCUS technologies.
As of the date of this report, Cemex is participating in over 280 innovation
projects. To build and expand this portfolio, we are seeking and expect to
continue seeking government funding in Europe and the United States, where
there are well established programs to foster green technology innovation.
High capital investment in research and
development and new technologies, along with
potential write-offs or early retirement of existing
assets and the cost of asset upgrades, poor
capital allocation, substantial penalties, higher
capital costs, and stakeholder activism could
have a material adverse effect on our business,
financial condition, and results of operations.
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Financial Performance
Environmental Excellence
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Selected Consolidated Financial
Information
Financial Information
Non-Financial Information
Scope and Boundaries of
This Report
Cemex’s Materiality Assessment
Stakeholder Engagement
Governance
EU Taxonomy
GRI Content Index
International Sustainability
Standards Board (ISSB)
Sustainability Accounting
Standards Board Response (SASB)
• Task Force on Climate-related
Financial Disclosure Response
(TCFD)
Terms We Use
Cautionary Statement Regarding
Forward-Looking Statements
Investor, Contact and Feedback
Information
Risk: Transition - Market
Time horizon effects: Medium term
Description
More stringent construction and energy efficiency standards are expected to drive demand
for new lower-carbon products and construction solutions. As consumer expectations continue
evolving, there is a risk that Cemex may fail to meet future market demands for new or alternative
lower-carbon products and solutions.
On the other hand, a lack of regulatory incentives or regulations promoting the use of lower-
carbon products could fail to incentivize their adoption. If customers are unwilling to bear the
additional costs associated with transitioning to a low-carbon industry, this could also compromise
our roadmap to achieving net-zero emissions by 2050. As industry peers embark on decarbonizing
strategies, the competition for raw materials with lower-carbon footprint increases, driving up
costs and limiting availability.
Current and anticipated effects on business model and value chain
Effects on strategy and decision-making
Current and anticipated financial effects
Effects on direct operations and value chain, both upstream and
downstream, related to the development of new lower-carbon
products to meet new construction standards, requirements and
expectations.
Cemex’s commercial department closely monitors demand for lower-
carbon products, while the R&D department continuously researches for
innovative low-carbon solutions to expand our solutions portfolio, including
our family of products with sustainable attributes, Vertua®.
Cemex’s fourth core business, Urbanization Solutions, aims to provide
sustainable alternatives for metropolises growth, providing the market with
high efficiency building solutions, and promoting circular economy through
enhanced waste management schemes for cities. Through Cemex Ventures,
we aim to identify, develop, and partner with disruptive construction projects
and companies to accelerate the commercialization of low-carbon solutions.
The following factors could have a material
adverse effect on our business, financial
condition, liquidity, and results of operation: (1)
reduced demand for our products and solutions
due to shifting consumer preferences toward
sustainable products could impact our revenue
stream; (2) increased production costs due
to more competition for lower-carbon and
alternative raw materials; (3) higher capital
expenses to adjust production processes and
technology to incorporate lower-carbon
alternative raw materials, and renewable energy;
and (4) potential damage to our reputation if
sustainability expectations are not met.
Risk: Transition – Reputation
Time horizon effects: Short term
Description
According to the GCCA, the cement industry accounts for approximately 5% - 8% of the world’s CO2
emissions. Cement could be perceived as a relevant contributor to CO2 global emissions. Negative company
reputation or industry stigmatization to CO2 emissions, along with related stakeholder activism could have a
negative impact on our stakeholders’ preferences for Cemex products.
Current and anticipated effects on business model and value chain
Effects on strategy and decision-making
Current and anticipated financial effects
Effects on direct operations and value chain, both upstream and
downstream, which could potentially affect the demand for our
products and solutions, capital availability or cost, and business
continuity.
Cemex is in constant communication with its stakeholders to understand their
views and expectations. This risk is monitored on a regular and coordinated
basis by the Social Impact, Public Affairs, Sustainability, and Investor
Relations departments through several channels: regular stakeholder surveys
evaluating our image and materiality matrix, dialogue with the investment
community, such as institutional investors, financial and sustainability analysts,
and review of external reports by NGOs, authorities, or media.
Cemex is actively involved in industry associations in the jurisdictions where
it operates, including the Global Cement and Concrete Association (GCCA).
Negative disposition towards Cemex and the
cement industry could reduce the demand
for our products and solutions, affecting our
revenue, reducing capital availability and/
or increasing our cost of capital, increasing
stakeholder’s activism and business operations
disruption. All these events could have a material
adverse effect on our business, financial
condition, liquidity, and results of operations.
258 Cemex 2024 Integrated Report
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Our Strategy
Financial Performance
Environmental Excellence
Stakeholder Engagement
Governance
Appendix
Selected Consolidated Financial
Information
Financial Information
Non-Financial Information
Scope and Boundaries of
This Report
Cemex’s Materiality Assessment
Stakeholder Engagement
Governance
EU Taxonomy
GRI Content Index
International Sustainability
Standards Board (ISSB)
Sustainability Accounting
Standards Board Response (SASB)
• Task Force on Climate-related
Financial Disclosure Response
(TCFD)
Terms We Use
Cautionary Statement Regarding
Forward-Looking Statements
Investor, Contact and Feedback
Information
Risk: Acute and Chronic Physical
Time horizon effects: Short-medium term
Description
Climate change is expected to intensify the severity and frequency of natural disasters already
experienced in most geographies, such as tropical cyclones or other extreme storms, while also bringing
new environmental changes that could impact people’s lives and economic activities. Our operations and
business are exposed to the event-driven acute physical risks and the chronic physical risks associated with
longer-term shifts in climate patterns.
Current and anticipated effects on business model and value chain
Effects on strategy and decision-making
Current and anticipated financial effects
The increased frequency and severity of extreme weather events
could cause direct damage to our operations and downstream
value chain, as well as the disruption of our business continuity,
specifically in geographies with a high occurrence probability of
natural disasters, including but not limited to the United States,
Spain, the Caribbean and Mexico.
Since 2023, we have partnered with Risilience, an enterprise risk
management specialist, to assess our exposure to climate-related risks
and opportunities under different global average-temperature increase
scenarios.
Additionally, the assessment of physical climate risks is a constant task
of Cemex’s Enterprise Risk Management (ERM) system, which includes
updating local emergency plans and collaborating with insurers to
understand the potential changes in insured risks. ERM develops recovery
strategies for PREPSI (People, Resources, Equipment, Premises, Suppliers,
and Information). The loss of PREPSI is considered in two stages:
operational continuity (by temporarily continuing to provide the goods
or services agreed with our customers) and a return to business as usual
(recovering business back to normal levels of operation).
To manage the physical risks, we aim to minimize the potential impact of
a disruptive event in our business through our Business Continuity & Crisis
Management (BC&CM) program. Under the scope of the BC&CM, a business
recovery plan is implemented in each identified site, enabling the continuity
and recovery of operations. BC&CM includes training, drills, and protocols
which are essential to our ability to respond to unexpected operational
risks with potential to disrupt business continuity, protecting people,
surroundings, and operations. More information on our BC&CM program is
available on page 118 of our 2024 Integrated Report.
Asset damage, business disruption, loss of sales,
cost increase and even reputation damage
or possible litigation. The decrease in sales
volume caused by physical hazard events is
usually counterbalanced by the increase in the
demand for our products and solutions during
the reconstruction phases. Chronic physical risks
could result also in supply chain disruptions as
it was the case of shipping capacity restrictions
in the Panama Canal due to low water levels.
Supply chain disruptions could have a negative
impact on the product delivery time and the cost
of serving our markets.
Increased frequency and strength of tropical
cyclones, as well as other extreme storms, can
also cause loss of production in our operations
due to the time to recover the plant to its original
production before the event.
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Environmental Excellence
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Selected Consolidated Financial
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Financial Information
Non-Financial Information
Scope and Boundaries of
This Report
Cemex’s Materiality Assessment
Stakeholder Engagement
Governance
EU Taxonomy
GRI Content Index
International Sustainability
Standards Board (ISSB)
Sustainability Accounting
Standards Board Response (SASB)
• Task Force on Climate-related
Financial Disclosure Response
(TCFD)
Terms We Use
Cautionary Statement Regarding
Forward-Looking Statements
Investor, Contact and Feedback
Information
Opportunity: Market - Products and services - Increased sales of existing products and services
Time horizon effects: Medium term
Description
More stringent building codes are likely to foster the development and use of new materials
and constructive solutions, we expect this to present cement innovative companies with a
competitive edge and allow for higher margins on already existing and new higher performance
products, by the increment in demand for low-carbon products across different regions.
We believe that we have several opportunities to expand our business by contributing to the
development of sustainable cities, which involves lowering the total energy consumption of
buildings through innovative design and construction practices. This transition is expected to
increase the construction activity as older buildings are replaced or refurbished. Additionally,
there is potential for increased demand for products and solutions that help to comply with new
construction standards requirements.
There is an opportunity to increase the demand of concrete products to support societal growth
and attend the need of adapting buildings and infrastructure to expected climate change effects.
In the IEA’s Net-Zero by 2050 scenario, it is acknowledged that the demand per capita of cement
and other materials tends to rise when economies are developing. Over the last two decades,
cement demand has increased by a factor of 2.4 in response to global economic and population
growth. Future demand for cement is expected to grow as it is required to build additional transport
infrastructure, such as roads, cycles, cars, and trucks, as well as energy infrastructure like power
plants and wind turbines to adapt to new net-zero CO2 scenarios.
Current and anticipated effects on business model and value chain
Effects on strategy and decision-making
Current and anticipated financial effects
Downstream value chain, including countries such as Egypt, Colombia,
Israel, Nicaragua, Mexico, Puerto Rico, Panama, Barbados, Trinidad
and Tobago, United Arab Emirates, and United States of America.
As Cemex has a high presence in developing countries’ markets such as
South, Central America and the Caribbean, Mexico and Egypt, it is likely
that the demand for concrete products increases first, to attend societal
growth needs and then, due to the need of adapting buildings and
infrastructure to expected effects of climate change, mainly in those
geographies most exposed to extreme weather events, including but not
limited to the United States, Spain, the Caribbean and Mexico.
For instance, we observed a slightly higher demand, mainly in Latin
America, for products like Promptis, a rapid-hardening concrete
that develops compressive strength within four hours, allowing sites
to recover time lost during lockdowns and catch up with construction
schedules. We also saw increased demand for Pervia, a draining
pavement solution that facilitates water permeation and directs it to a
water management system.
Cemex offers a range of lower-carbon cement and
concrete products, such as Vertua® lower-carbon concrete
and our lower-carbon cement, along with other products
with sustainable attributes like energy efficiency, water
conservation, recycled materials and design optimization.
These products have been rapidly adopted by our
customers across different geographies. As of December
31, 2024, Vertua®, accounted for 63% of our total cement
sales and 55% of our total concrete sales, achieving our
2025 target of 50% of total cement and ready-mix sales
one year ahead of schedule.
Increased revenues are expected due to rising demand
for products and services, along with access to new and
emerging markets. This competitive edge could also allow
for higher margins on both existing and newly developed
higher performance products.
260 Cemex 2024 Integrated Report
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Financial Performance
Environmental Excellence
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Appendix
Selected Consolidated Financial
Information
Financial Information
Non-Financial Information
Scope and Boundaries of
This Report
Cemex’s Materiality Assessment
Stakeholder Engagement
Governance
EU Taxonomy
GRI Content Index
International Sustainability
Standards Board (ISSB)
Sustainability Accounting
Standards Board Response (SASB)
• Task Force on Climate-related
Financial Disclosure Response
(TCFD)
Terms We Use
Cautionary Statement Regarding
Forward-Looking Statements
Investor, Contact and Feedback
Information
Opportunity: Products and services - Development of new products or services through R&D and innovation
Time horizon effects: Medium term
Description
Cement and concrete offer several important characteristics for a low-carbon transition, including
longevity, resistance, thermal properties for hot and cold weather, and wide availability. These attributes
contribute to building resilient infrastructure capable of withstanding the detrimental consequences of
climate change and providing the level of climate-proofing that could become mandatory as national
building codes are revised to address more extreme weather events.
These building codes foster the development of new materials and construction solutions
and products, creating significant potential for further developments to decrease embodied
carbon, improve the insulating properties of concrete, further increase its strength, and
introduce smart functions to extend maintenance intervals and technical lifespans.
Current and anticipated effects on business model and value chain
Effects on strategy and decision-making
Current and anticipated financial effects
Effects on the downstream value chain. Cemex has observed increasing
demand for lower-carbon products mainly in Europe and other
countries like Colombia.
Our R&D is constantly adapting our product portfolio to
meet evolving customer and societal needs.
Cemex conducts R&D projects to anticipate future needs and
challenges of society and evaluate existing and emerging
technologies through the “Tech Intelligence Program”. This
program is comprised of Cemex members from different
disciplines who assess “technology alerts” (emerging or
already developed) and provide insights to guide solution
development.
Additionally, through our Urbanization Solutions core
business, Cemex leverages its expertise in building materials
to offer complementary solutions that address pressing
societal needs, such as resilient buildings and infrastructure
appropriate for disaster relief, energy efficiency, and
affordability.
Increased revenues resulting from increased demand
for products and services and from access to new and
emerging markets.
Revenues are mainly impacted by the increase in sales
expected for new, resilient and lower-carbon products.
As soon as our customers understand the magnitude
and importance of having a lower-carbon footprint and
product life cycle assessment, the opportunity could
become even more significant.
The cost of developing a new high-energy-efficiency
product depends on several factors and is part of R&D
activities. Additional expenses include certification, market
introduction, R&D staffing, and market penetration efforts.
Additionally, we have received support through EU
“Innovation Funds” for our new R&D technologies, and
we have been granted funding from the U.S. DOE for
innovation.
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Our Strategy
Financial Performance
Environmental Excellence
Stakeholder Engagement
Governance
Appendix
Selected Consolidated Financial
Information
Financial Information
Non-Financial Information
Scope and Boundaries of
This Report
Cemex’s Materiality Assessment
Stakeholder Engagement
Governance
EU Taxonomy
GRI Content Index
International Sustainability
Standards Board (ISSB)
Sustainability Accounting
Standards Board Response (SASB)
• Task Force on Climate-related
Financial Disclosure Response
(TCFD)
Terms We Use
Cautionary Statement Regarding
Forward-Looking Statements
Investor, Contact and Feedback
Information
Opportunity: Technology - Resource efficiency - Cost savings
Time horizon effects: Long term
Description
Both the environment and Cemex’s revenues can benefit from co-processing if the right waste
management regulations are in place. It could enable the development of a profitable waste
management business by, for instance, imposing taxes and bans on landfills. This could lead to an
increase in the availability of alternative fuels at a lower cost and reduce CO2 emissions.
The benefits of co-processing, which consist of switching from conventional fossil fuels to
alternative fuels, mainly RDF (Refuse Derived Fuels), are not widely understood in our areas
of influence, especially in those regions with a lack of or low regulatory enforcement, like
Latin America, Asia and Africa and some areas in the USA. These are precisely the markets
where Cemex could benefit the most from increased alternative fuel rates at lower costs.
Current and anticipated effects on business model and value chain
Effects on strategy and decision-making
Current and anticipated financial effects
Direct operations, including countries such as Egypt, Colombia, Mexico,
Nicaragua, Panama, Jamaica, Puerto Rico, Barbados, United Arab
Emirates and United States of America.
Countries in Europe have already leverage on this opportunity. For
example, Poland, where appropriate waste regulations and economic
incentives are in place, has achieved an alternative fuel substitution rate
of 80-90% year over year, while Cemex’s 2024 global alternative fuels
rate was 37%.
To capitalize on the opportunity to increase the use of lower-
emissions sources of energy in our kilns, Cemex launched
Regenera in 2023, a business unit focused on circularity
services. Regenera offers waste management solutions
to private and public sectors, including the reception,
management, recycling, and coprocessing of different
kinds of waste. The integration of processed waste into the
cement and concrete manufacturing processes decreases
the need for natural raw materials and fossil fuels for
cement production.
Additionally, we have other lines of action: (1) Contact the
Local/Regional/National administrations to promote the
implementation of the proper regulation, and (2) Promote
co-processing in our communities and with our main
stakeholders.
Reducing exposure to future fossil fuel price increases by
switching from fossil fuels to alternative fuels, reducing our
direct costs.
This can impact on financial planning costs associated
with the alternative fuels strategy when the price lowers
or is expected to lower. The impact of this lever is still low,
primarily affecting some EU operations, mainly in the UK
and Poland.
The long-term costs of realizing this opportunity worldwide
include lobbying expenses to support the implementation of
appropriate waste management policies and to promote
the unique benefits of co-processing.
262 Cemex 2024 Integrated Report
Contents
Our Company
Our Strategy
Financial Performance
Environmental Excellence
Stakeholder Engagement
Governance
Appendix
Selected Consolidated Financial
Information
Financial Information
Non-Financial Information
Scope and Boundaries of
This Report
Cemex’s Materiality Assessment
Stakeholder Engagement
Governance
EU Taxonomy
GRI Content Index
International Sustainability
Standards Board (ISSB)
Sustainability Accounting
Standards Board Response (SASB)
• Task Force on Climate-related
Financial Disclosure Response
(TCFD)
Terms We Use
Cautionary Statement Regarding
Forward-Looking Statements
Investor, Contact and Feedback
Information
Cemex’s Transition Plan
Future in Action is our global climate action program focused on developing lower-carbon
products, solutions, and processes, including a range of qualities beyond just lower-carbon,
with the primary objective of achieving net-zero CO2 emissions across the company by 2050.
As part of this program, Cemex is leveraging on the CO2 Reduction Roadmap, developed
and launched across all our cement sites to model and assess the carbon mitigation
potential at each site. This roadmap considers different factors and specific actions to
achieve our 2030 decarbonization goals throughout our Scope 1, Scope 2 and Scope
3 emissions by implementing different technical measures, like increasing the use of
alternative fuels, particularly biomass, upgrading technology assets, increasing the use
of clinker substitutes or changing portfolio products. To implement this roadmap, Cemex
seeks to invest an approximate of USD$150 million annually.
In 2022, Cemex validated its 2050 net-zero CO2 roadmap and its 2030 decarbonization
goals under the Science Based Targets initiative’s (SBTi) 1.5°C Scenario, becoming one of
the first companies in the industry to do so.
ä To learn more about our Future in Action program and CO2 Roadmap, please refer to pages 32-63 in
our 2024 Integrated Report or visit cemex.com
Cemex has also adopted several organizational measures, including awareness-raising,
monitoring, and reporting of emissions, as well as the extensive use of our proprietary
carbon footprint tool, CerO2. To reinforce this commitment, all operations set an annual
emissions reduction goal tied to our CO2 metrics, with a portion of employee compensation
linked to the achievement of this goal.
Additionally, as part of our transition plan, Cemex is making significant investments in R&D
to achieve our 2050 net-zero CO2 target. One of the major contributors to reducing our
emissions and achieving carbon neutrality will be the capture and storage, or utilization
of CO2 (CCUS) emitted from our processes. Cemex is currently developing large-scale
CCUS projects in Europe and the U.S., along with several pilot programs and emerging
CCUS technologies designed to improve and accelerate decarbonization. Recently, in
collaboration with Linde, we were granted €157 million from the EU Innovation Fund for
the development of a CCUS project that will capture 1.3 million metric tons of CO2 per year
from Cemex Rüdersdorf’s cement plant, ultimately decarbonizing the site by 2030.
ä To learn more about our innovation and research projects and efforts, please refer to pages 54-58 of
our 2024 Integrated Report.
Internal Carbon Price
Since 2020, Cemex has implemented an internal carbon price as a shadow price to drive
low-carbon investments and change internal behaviors. This approach reflects a simulated
cost for CO2 emissions, assuming that all our sites worldwide operate under an emission
trading system (ETS). Each year, we update the price of carbon according to the latest EU
ETS average price forecast from a report by ten analysts (65.3 EUR/t for 2024 and 145
EUR/t for 2030; UKA 2024: 37.7 GBP/ton). This also includes UK ETS price forecast. The
California market price is adjusted based on Analyst’s Best Estimate used for our California
operation (37.3 USD/t in 2024, and 95 USD/t in 2030). For non-regulated countries outside
the EU and California, we apply a carbon floor price of 24 USD/ton in 2024, and 36 USD/t
in 2030. These forecasts are used in all our business units, enabling managers to make
operational and investment decisions while considering the impact of CO2 emissions on
present and future financial performance.
c) Describe the resilience of the organization’s strategy, taking into consideration
different climate-related scenarios, including a 2°C or lower scenario.
To better assess, quantify, and report climate-related risks, since 2023, we have engaged
with Risilience, an enterprise risk management specialist that uses technology pioneered
by the Centre for Risk Studies at the University of Cambridge Judge Business School. This
partnership allows us to assess our exposure to climate-related risks and opportunities
under different global average-temperature increase scenarios. The technology allowed
us to develop a digital twin of our operations to model impacts for both our physical and
transition risks.
The 2023 pilot project focused on the physical risks of twenty of our most significant
facilities and locations. In 2024, we expanded the assessment to include all key assets from
our cement, ready-mix and aggregates business, covering more than 1,500 assets5. The
digital twin incorporates five emission scenarios and Shared Socioeconomic Pathways
(“SSP”) defined by the Intergovernmental Panel on Climate Change (IPCC): Paris Ambition
(SSP1-1.9), Paris Agreement (SSP1-2.6), Stated policy (SSP2-4.5), Current policy (SSP3-7.0),
and No policy (SSP5-8.5).
These pathways define possible future emission scenarios with different narratives that
explore how society, demographics, and economics will affect greenhouse gas emissions,
resultant radiative forcing, and temperature rise across the globe. The scenarios are
based on the Shared Socioeconomic Pathways (SSPs) combined with the Representative
Concentration Pathways (RCPs), which form the basis of the Sixth Assessment Report (AR6)
from the Intergovernmental Panel on Climate Change (IPCC).
This scenario analysis assesses the resilience of Cemex’s climate strategy over the short-
term (1 year), medium-term (5 year), and long-term (2040). The identified risks and
opportunities are assessed based on their impact on business activity, financial and earnings
position, and cash flow (USD million).
5
Risiliance assessment considers discontinued operations.
263 Cemex 2024 Integrated Report
Contents
Our Company
Our Strategy
Financial Performance
Environmental Excellence
Stakeholder Engagement
Governance
Appendix
Selected Consolidated Financial
Information
Financial Information
Non-Financial Information
Scope and Boundaries of
This Report
Cemex’s Materiality Assessment
Stakeholder Engagement
Governance
EU Taxonomy
GRI Content Index
International Sustainability
Standards Board (ISSB)
Sustainability Accounting
Standards Board Response (SASB)
• Task Force on Climate-related
Financial Disclosure Response
(TCFD)
Terms We Use
Cautionary Statement Regarding
Forward-Looking Statements
Investor, Contact and Feedback
Information
Scenario Name and Reference
No Policy Action
(SSP5-8.5)
Current Policy
(SSP3-7.0)
Stated Policy
(SSP2-4.5)
Paris Agreement
(SSP1-2.6)
Paris Ambition
(SSP1-1.9)
Description
Governments fail to implement
policies and therefore, CO2
emissions go unregulated
Existing CO2 emission reduction
policies are followed
Existing and planned CO2
emission reduction policies are
implemented and followed
There is an attempt to follow
environmentally friendly
practices; most of the major
consequences of climate change
are averted
Strict environmentally friendly
practices are adopted, avoiding
major consequences of climate
change
Temperature change vs average
global temperature
of 1850-1900
2030 – 1.6°C
2050 – 2.4°C
2100 – 4.4°C
2030 – 1.5°C
2050 – 2.1°C
2100 – 3.6°C
2030 – 1.5°C
2050 – 2.0°C
2100 – 2.7°C
2030 – 1.5°C
2050 – 1.7°C
2100 – 1.8°C
2030 – 1.5°C
2050 – 1.6°C
2100 – 1.4°C
Relevant Underlying Assumptions
Industry policies and incentives to
technology development
Lack of global GHG policies and
regulations.
Climate policies remain limited
and are likely to vary by
region with different levels of
enforcement. Energy efficiency
in plants is primarily pursued as a
cost-effective measure.
Different measures depending on
the geography.
EU: New Industrial Strategy and
country-level spending on green
industry pilots, circular economy
and hydrogen.
U.S.: Investments from a
Department of Energy program
to decarbonize manufacturing.
LATAM: No incentives, except in
Brazil.
Across all regions, policies are
expected to support increased
deployment of CCUS and
hydrogen, promote the circular
economy, and enhance minimum
energy performance standards
for electric motors by 2025, along
with mandatory energy audits.
Achieving these targets will
require a much faster pace of
technological innovation than
previously achieved, and at a
competitive cost. Most new clean
technologies in heavy industry
are expected to be demonstrated
at scale by 2030, with over 90%
of heavy industrial production
reaching low emissions by 2050.
Building sector policies
NA
Building codes and standards
vary significantly between
regions, with weaker regulations
in developing areas, which lag
behind more developed regions.
The integration of renewable
energy sources in buildings is low,
and buildings continue to rely on
fossil fuels to meet their energy
and electricity demands.
Policies and measures differ
by region: in the EU, there are
country-level incentives for
renovations and appliance
upgrades, new building codes,
and support for clean heating
incentives and investments; in
Egypt, minimum performance
standards apply only to
incandescent lamps; in the
USA, updated minimum energy
performance standards are in
place; in LATAM, no building
policies are currently in effect.
Mandatory energy conservation
building codes, including net-zero
emissions requirement for all new
buildings by 2030, at the latest.
Universal energy access is
anticipated, with all new buildings
being zero-carbon-ready, and
85% of all buildings reaching zero-
carbon readiness by 2050.
Carbon price (IEA reference)
USD/ton
NA
Low carbon prices due to weak
climate policies.
EU: 2030: 65 / 2040: 75 / 2050:90
Colombia, Mexico: 2030: 15 /
2040: 20 / 2050: 30 US: Price only
in California.
Advanced economies: 2030: 120 /
2040: 170 / 2050: 200
Colombia and Mexico with NZ
pledge: 2030: 40 / 2040: 110 /
2050: 160
Advanced economies: 2030: 130 /
2040: 205 / 2050: 250
Developing economies: 2030:15 /
2040: 35 / 2050: 55
Cement demand and demand of
lower carbon products
No demand for lower-carbon
products. Cement demand
increases to build infrastructure
adapted to the dramatic effects
of climate change, such as floods
or droughts
Slow adoption of lower-carbon
products with developed
countries having higher adoption
rates than developing regions.
Cement demand increases
due to high population growth
and urbanization in developing
countries.
CAAGR: +0.7 in 2030 and -0.2 in
2050
Lower-carbon products demand
increase +0.1
CAAGR: +0.7 in 2030 and -0.4 in
2050
Lower-carbon products demand
increase +0.2
CAAGR: -0.20 in 2030 and -0.3
in 2050
Lower-carbon products demand
increase +0.5
264 Cemex 2024 Integrated Report
Contents
Our Company
Our Strategy
Financial Performance
Environmental Excellence
Stakeholder Engagement
Governance
Appendix
Selected Consolidated Financial
Information
Financial Information
Non-Financial Information
Scope and Boundaries of
This Report
Cemex’s Materiality Assessment
Stakeholder Engagement
Governance
EU Taxonomy
GRI Content Index
International Sustainability
Standards Board (ISSB)
Sustainability Accounting
Standards Board Response (SASB)
• Task Force on Climate-related
Financial Disclosure Response
(TCFD)
Terms We Use
Cautionary Statement Regarding
Forward-Looking Statements
Investor, Contact and Feedback
Information
No Policy Action
(SSP5-8.5)
Current Policy
(SSP3-7.0)
Stated Policy
(SSP2-4.5)
Paris Agreement
(SSP1-2.6)
Paris Ambition
(SSP1-1.9)
Timeframe
Risk
Opportunity
Risk
Opportunity
Risk
Opportunity
Risk
Opportunity
Risk
Opportunity
Policy
2025
2030
2040
Technology
2025
2030
2040
Market
2025
2030
2040
Reputation
2025
2030
2040
Physical
(acute and
chronical)
2025
2030
2040
Quantification based on potential impact
on business activity, financial and earnings
position, and cash flow (USD Million) (assuming
no mitigation):
Low
Medium
High
265 Cemex 2024 Integrated Report
Contents
Our Company
Our Strategy
Financial Performance
Environmental Excellence
Stakeholder Engagement
Governance
Appendix
Selected Consolidated Financial
Information
Financial Information
Non-Financial Information
Scope and Boundaries of
This Report
Cemex’s Materiality Assessment
Stakeholder Engagement
Governance
EU Taxonomy
GRI Content Index
International Sustainability
Standards Board (ISSB)
Sustainability Accounting
Standards Board Response (SASB)
• Task Force on Climate-related
Financial Disclosure Response
(TCFD)
Terms We Use
Cautionary Statement Regarding
Forward-Looking Statements
Investor, Contact and Feedback
Information
Cemex recognizes that climate action is the greatest challenge of our time and our climate
strategy remains aligned with the most ambitious scenario, Paris Ambition (SSP1-1.9).
The assessment considers the inherent risk to Cemex but does not account for residual
risk. However, the results confirm that Cemex’s carbon strategy is generally robust and
demonstrates strong climate initiatives and performance. Particularly, we have robust
efforts in technology and market, as these two areas show a high impact quantification
throughout the three time frames considered in this assessment. Our innovation and R&D
teams are continuously working to identify, develop, and invest in new technologies that
deliver innovative building materials and solutions to build resilient cities, urban projects,
buildings, and infrastructure. We are also investing in and forming partnerships to develop
and leverage technologies as we enhance our production processes, in line with our
climate commitments.
Additionally, our portfolio of products and solutions with sustainable attributes, Vertua®,
which includes our lower-carbon concrete and cement, has gained rapid adoption by
customers across the geographies where we operate. Cemex remains committed to
offering products and services that address our customers’ sustainability-related concerns
while maintaining alignment with the most ambitious net-zero scenario efforts by 2050.
The results of this assessment, along with the analysis of our Future in Action program,
our climate action plan launched in 2020, with its related initiatives, progress and plans,
demonstrate that our strategy is robust and well-prepared to tackle the most ambitious
challenges expected under each scenario and to deliver on our climate commitments.
We will continue working toward our 2030 target of reducing our net specific CO2 emissions
by 47% compared to our 1990 baseline. Also, Cemex expects to continue investing in
research and development, capitalizing on Cemex Ventures, Urbanization Solutions, and
strategic partnerships, to continue at the forefront of the building materials industry by
offering cutting-edge sustainable products and solutions and improving our production
processes in line with our decarbonization roadmap. We anticipate that these efforts will
be further strengthened in the most carbon-constrained scenarios.
Risk Management
Disclose how the organization identifies, assesses and manages climate-related risks.
a) Describe the organization’s processes for identifying and assessing climate-related
risks.
b) Describe the organization’s processes for managing climate-related risks.
c) Describe how processes for identifying, assessing, and managing climate-related risks
are integrated into the organization’s overall risk management.
Cemex’s Enterprise Risk and Opportunity Management
Cemex has an Enterprise Risk Management (“ERM”) system established throughout the
organization with global policies and procedures designed to anticipate and manage the
main risks and opportunities that could affect our business. Our ERM system is established at
country, regional and global levels following a bottom-up and top-down strategy that allows
information flow across the organization and supports better-informed decision making. The
ERM and the Sustainability functions are the primary responsible departments for assessing
climate-related risks and opportunities.
Our risk and opportunity agenda, developed at country, regional, and global level, results
from a comprehensive ERM process that identifies and manages different types of risks,
trends, emerging concerns, and opportunities that could impact Cemex’s strategic priorities
in the short, medium, and long term. This agenda is developed at least twice a year, and it
is presented to the Risk Management Committee, composed of the Executive Committee
members, and to the Board of Directors for its insight, discussion and approval. This agenda
includes sustainability, ESG, and climate-related risks and opportunities, which are managed
within the ERM system.
Through the Sustainability, Climate Action, Social Impact and Diversity Committee,
the Board of Directors oversees and discusses in detail the climate-related risks and
opportunities previously identified in the risk and opportunity agenda. These risks and
opportunities are prioritized based on their overall risk rating assessed by ERM, which
is based on their estimated probability (likelihood of the risk materializing) and impact
(qualitative/quantitative consequences for Cemex if the risk materializes).
In addition to our ERM system to identify, assess, monitor and manage climate-related risks
and opportunities, a scenario analysis is elaborated, integrating the risks and opportunities
identified in the agendas, and using relevant inputs and parameters to assess each element.
This assessment is presented in the Strategy section of this TCFD report.
266 Cemex 2024 Integrated Report
Contents
Our Company
Our Strategy
Financial Performance
Environmental Excellence
Stakeholder Engagement
Governance
Appendix
Selected Consolidated Financial
Information
Financial Information
Non-Financial Information
Scope and Boundaries of
This Report
Cemex’s Materiality Assessment
Stakeholder Engagement
Governance
EU Taxonomy
GRI Content Index
International Sustainability
Standards Board (ISSB)
Sustainability Accounting
Standards Board Response (SASB)
• Task Force on Climate-related
Financial Disclosure Response
(TCFD)
Terms We Use
Cautionary Statement Regarding
Forward-Looking Statements
Investor, Contact and Feedback
Information
Risk and Opportunity Management
Process at Cemex
Our risk and opportunity management
process is an ongoing systematic approach
present in corporate, regions, countries,
and operational business units. The
climate-related risks and opportunities are
also considered within this company risk
and opportunity management process,
along with other risks and opportunities
relevant to the company. It is a proactive,
preventive, and corrective approach to
address all potential risks and identify
opportunities. There is coordination with
the Sustainability function and the climate
action strategy of the company.
Our risk and opportunity management
processes adhere to best practices from
the ISO 31000, ISO 22301 and ISO 22361
standards for risk management, business
continuity and crisis management, and also
the Business Continuity Institute guidelines.
Additionally, our ERM team is formed by
accredited professionals on ISO 31000
and ISO 31010 techniques, and members
of the Risk Management Society and other
international risk management networks.
Risk Oversight at Board
and Executive Committee
Monitoring
Assessment
Identification
Treatment
Reporting
We constantly monitor
the business environment
in which we operate
to effectively report
risks and opportunities
to decision-makers.
Main risks and opportunities are
integrated into the enterprise risk
and opportunity agenda, which is
discussed by senior management
at global, regional, and country
levels. Relevant changes in the
status of identified risks,
opportunities and treatment
measures are promptly
communicated to decision
makers through several reports.
We define a risk owner as responsible for the risk treatment,
and ERM representatives follow up on risk treatment
actions, in some cases acting as coordinators of ad-hoc
task forces focused to mitigate specific risks or capitalize
on identified opportunities.
Risks and opportunities are evaluated and prioritized
employing qualitative and quantitative methods to determine
their potential impact and likelihood of materialization
in a specific timeframe.
Following a bottom-up and a top-down strategy, we
employ risk interviews, online risk surveys, risk workshops,
and external experts’ insights, among other techniques, to
identify strategic and operational events that could impact
Cemex in the short, medium, or long term.
ä For more information on Cemex’s Risk and
Opportunity Management, please refer to
pages 117 in our 2024 Integrated Report.
Risk & Opportunities Management Process
267 Cemex 2024 Integrated Report
Contents
Our Company
Our Strategy
Financial Performance
Environmental Excellence
Stakeholder Engagement
Governance
Appendix
Selected Consolidated Financial
Information
Financial Information
Non-Financial Information
Scope and Boundaries of
This Report
Cemex’s Materiality Assessment
Stakeholder Engagement
Governance
EU Taxonomy
GRI Content Index
International Sustainability
Standards Board (ISSB)
Sustainability Accounting
Standards Board Response (SASB)
• Task Force on Climate-related
Financial Disclosure Response
(TCFD)
Terms We Use
Cautionary Statement Regarding
Forward-Looking Statements
Investor, Contact and Feedback
Information
Metrics and Targets
Disclose the metrics and targets used to assess and manage relevant climate-related risks
and opportunities where such information is material.
a) Disclose the metrics used by the organization to assess climate-related risks and
opportunities in line with its strategy and risk management process.
b) Disclose Scope 1, Scope 2, and, if appropriate, Scope 3 greenhouse gas (GHG)
emissions, and the related risks.
GHG Emissions
2022
2023
20241
Scope 1 absolute gross CO2 emissions in cement (million ton)2
35.3
32.5
26.4
Scope 1 absolute net CO2 emissions in cement (million ton)2,3
31.9
29.0
23.9
Scope 2 absolute CO2 emissions in cement (million ton)4,5
3.0
2.7
2.0
Scope 1 specific gross CO2 emissions (kg CO2/ton of cementitious
product)2
621
603
580
Scope 1 specific net CO2 emissions (kg CO2/ton of cementitious
product)2,6
562
541
526
Scope 2 specific CO2 emissions (kg CO2/ton of cementitious
product)2,7
52.4
50.6
44.7
Scope 1 + 2 specific gross CO2 emissions (kg CO2/ton of cementitious
product)
673
654
625
Reduction in CO2 emissions per ton of cementitious product from
1990 baseline (%)
29.9
32.6
33.9
Reduction in CO2 emissions per ton of cementitious product from
2020 baseline (%)
9.3
12.8
15.2
Scope 1 CO2 gross emissions (million ton)8
36.2
33.3
27.2
Scope 2 CO2 emissions (million ton)9
3.1
2.9
2.2
Scope 3 CO2 emissions (million ton)10
17.8
16.4
13.4
Category 1: Purchased goods and services (million ton)11
6.3
5.9
4.8
Category 2: Capital goods (million ton)
0.2
0.2
0.2
Category 3: Fuel and energy related (million ton)11
2.7
2.4
2.0
Category 4: Upstream transport (million ton)
2.2
2.0
1.7
Category 5: Waste (million ton)
0.002
0.002
0.002
Category 6: Business travel (million ton)
0.04
0.02
0.02
Category 7: Employee commuting (million ton)
0.03
0.06
0.05
Category 8: Upstream leased assets (million ton)
-
-
-
GHG Emissions
2022
2023
20241
Category 9: Downstream transport (million ton)
0.9
0.6
0.6
Category 10: Processing of sold products (million ton)
0.2
0.1
0.1
Category 11: Use of sold products (million ton)11
3.9
3.6
2.0
Category 12: End-of-life treatment of sold products (million ton)
0.5
0.6
0.9
Category 13: Downstream leased assets (million ton)
-
-
-
Category 14: Franchises (million ton)
-
-
-
Category 15: Investments (million ton)
1.0
1.0
1.0
CO2 emissions intensity per US$ of revenue (Scope 1 + 2) (kg CO2/US$)
2.5
2.1
1.8
CO2 avoided emissions (million tons)
11.2
11.6
11.1
CO2 emissions from biogenic carbon (million tons)2
1.9
1.8
1.8
Scope of emissions covered by an ETS/carbon taxation regime
(% Scope 1)8
32
30
34
Alternative Raw Materials & Waste Management
2022
2023
20241
Clinker Factor (Cementitious) (%)
73.7
72.3
71.8
Alternative raw material rate (%)12,13
11.6
12.7
14.0
Total waste sent for disposal (thousand ton)14
400.0
826.5
848.0
Total waste-derived sources repurposed (million ton)15
26.8
27.9
27.1
Percentage of own operational waste that is recycled (%)14
94
87
82
268 Cemex 2024 Integrated Report
Contents
Our Company
Our Strategy
Financial Performance
Environmental Excellence
Stakeholder Engagement
Governance
Appendix
Selected Consolidated Financial
Information
Financial Information
Non-Financial Information
Scope and Boundaries of
This Report
Cemex’s Materiality Assessment
Stakeholder Engagement
Governance
EU Taxonomy
GRI Content Index
International Sustainability
Standards Board (ISSB)
Sustainability Accounting
Standards Board Response (SASB)
• Task Force on Climate-related
Financial Disclosure Response
(TCFD)
Terms We Use
Cautionary Statement Regarding
Forward-Looking Statements
Investor, Contact and Feedback
Information
Water Management16
2022
2023
20241
Total water withdrawals (million m3)
58.7
52.5
50.1
Total water discharge (million m3)
18.5
14.1
12.7
Total water consumption (million m3)
40.3
38.4
37.4
Total freshwater withdrawn in sites located in water-stressed
areas (million m3)
6.3
3.8
Total freshwater consumption in sites located in water-stressed
areas (million m3)
5.7
3.6
Specific water consumption
Cement (l/cement ton)17
265
255
262
Ready-mix (l/m3)
232
233
235
Aggregates (l/ton)
123
135
140
Sites with water recycling systems (%)
82
87
89
Energy Consumption
2022
2023
20241
Specific heat consumption (MJ/ton clinker)12
4,063
4,110
4,113
Specific power consumption (kWh/ton cement)12
123
124
126
Fuel Consumption (TJ)
177,017 165,960 139,488
Power Consumption (GWh)
7,252
7,031
6,191
Total Energy Consumption (GWh)
56,424
53,131
44,937
Cement Fuel Mix (%)
Primary Fuels
65.0
63.2
63.3
Petroleum coke
37.1
41.6
36.6
Coal
18.8
12.1
12.2
Fuel oil + Diesel
3.0
2.0
2.1
Natural gas
6.1
7.5
12.4
Alternative Fuels
35.0
36.8
36.7
Fossil-based waste
23.0
25.0
21.8
Biomass waste
12.0
11.8
14.9
Power consumption from clean energy in cement (%)18
33
36
34
Footnotes:
1
2024 figures do not include discontinued operations.
2
Calculation according to the GCCA Sustainability Guidelines for the monitoring and reporting of CO2 emissions from cement
manufacturing.
3
The figures for 2022 and 2023 are 28.2 and 25.6, respectively, without considering discontinued operations.
4
Marked based.
5
The figures for 2022 and 2023 are 2.5 and 2.3, respectively, without considering discontinued operations.
6
The figures for 2022 and 2023 are 564 and 539, respectively, without considering discontinued operations.
7
The figures for 2022 and 2023 are 50.4 and 48.7, respectively, without considering discontinued operations.
8
Figure includes emissions from Cemex-owned road transport fleet.
9
Scope 2 CO2 emissions for cement in 2024 are 2.0 million tons.
10 All categories of Scope 3 are included.
11 Reporting data as verified by KPMG.
12 Cement only.
13 Calculation according to GCCA Sustainability Guidelines for co-processing fuels and raw materials in cement manufacturing.
14 Starting 2023, internal update on waste categorization criteria. 2023 and 2022 figures for “Percentage of own operational waste that
is recycled (%)” have been restated due to divestments and change in accounting criteria.
15 Includes non-recyclable waste consumed in our operations as alternative raw material and fuel, alternative aggregates, own recycled
material in our businesses and other waste managed by the company. 2023 and 2022 figures have been restated due to divestments
and change in accounting criteria.
16 Classification according to GCCA Sustainability Guidelines for the monitoring and reporting of water in cement manufacturing.
17 The figures for 2022 and 2023 are 13.6 and 12.3 million m3, respectively, without considering discontinued operations.
18 Our definition of clean energy includes renewable energy sources such as solar, wind, hydro, geothermal, and biomass, together with
power generated from waste heat recovery systems.
269 Cemex 2024 Integrated Report
Contents
Our Company
Our Strategy
Financial Performance
Environmental Excellence
Stakeholder Engagement
Governance
Appendix
Selected Consolidated Financial
Information
Financial Information
Non-Financial Information
Scope and Boundaries of
This Report
Cemex’s Materiality Assessment
Stakeholder Engagement
Governance
EU Taxonomy
GRI Content Index
International Sustainability
Standards Board (ISSB)
Sustainability Accounting
Standards Board Response (SASB)
• Task Force on Climate-related
Financial Disclosure Response
(TCFD)
Terms We Use
Cautionary Statement Regarding
Forward-Looking Statements
Investor, Contact and Feedback
Information
c) Describe the targets used by the organization to manage climate-related risks and
opportunities and performance against targets.
Cemex is among the first companies in the global cement industry to validate its 2030
decarbonization targets and 2050 net-zero goal through the Science Based Targets
initiative (SBTi) for alignment under the 1.5°C scenario, the most ambitious for the cement
industry. This validation includes Scope 1, 2, and 3 emission targets, allowing us to align with
the Paris Agreement objective. Our 2030 and 2050 net-zero targets do not consider the
use of offsets or carbon credits, in alignment with SBTi Criteria.
To reach our climate targets, we have developed a CO2 roadmap including specific
reduction initiatives for each cement site, identifying the necessary resources (CAPEX) and
calendar for their implementation. Each region monitors monthly its site-by-site plan to
strive to comply with its implementation and resources allocation.
Scope 1-specific CO2 emissions
(kg CO2/ton of cementitious product)
Climate-related Targets
2020
Baseline
2024
Performance
2030
Target
2050
Target
Scope 1
Reduction of net CO2 emissions
in cement per ton of cementitious
product (kgCO2/ton of
cementitious product)
620
526
15% reduction1
< 430
31%
reduction
Net-zero CO2
emissions
across the
company
Clinker factor (%)
71.8
68
Alternative fuels (%)
37
55
Scope 2
Reduction of CO2 emissions
per ton of cementitious
product (kgCO2/ton of
cementitious product)
57
44.7
18% reduction1
24
58%
reduction
Clean electricity (%)
28
34
Scope 3
Reduction of CO2 emissions
per ton of purchased
clinker and cement (kgCO2/ton)
850
819
25%
reduction
Reduction of CO2 emissions
per ton of purchased fuels
(kgCO2/ton)
255
205
40%
reduction
Reduction of absolute CO2
emissions of traded fuels
(tons of CO2)
5,730,384
1,980,527
42%
reduction
2021
591
2022
562
2023
541
2024
-34%
526
1990
802
Cemex
Baseline
2020
-23%
620
SBTi
Baseline
2030
-47%
430
Target
1
Like-for-like, excluding discontinued operations.
270 Cemex 2024 Integrated Report
Contents
Our Company
Our Strategy
Financial Performance
Environmental Excellence
Stakeholder Engagement
Governance
Appendix
Selected Consolidated Financial
Information
Financial Information
Non-Financial Information
Scope and Boundaries of
This Report
Cemex’s Materiality Assessment
Stakeholder Engagement
Governance
EU Taxonomy
GRI Content Index
International Sustainability
Standards Board (ISSB)
Sustainability Accounting
Standards Board Response (SASB)
Task Force on Climate-related
Financial Disclosure Response
(TCFD)
• Terms We Use
Cautionary Statement Regarding
Forward-Looking Statements
Investor, Contact and Feedback
Information
Terms We Use
Financial
American Depositary Shares (ADSs). A means
for non- U.S.-based corporations to list
their ordinary equity on an American stock
exchange. Denominated in U.S. dollars, they
confer economic rights to the corporation’s
underlying shares, which are held on deposit
by a custodian bank in the company’s home
country or territory. In relation to Cemex,
Citibank, N.A. is the depositary of Cemex’s
ADSs and each ADS represents 10 CPOs. The
Cemex ADSs are listed on the New York Stock
Exchange.
EBITDA. Means Operating EBITDA: Operating
earnings before other expenses, net plus
depreciation and operating amortization.
Free cash flow. Cemex defines it as
Operating EBITDA minus net interest
expense, maintenance and expansion capital
expenditures, change in working capital, taxes
paid, and other cash items (net other expenses
less proceeds from the disposal of obsolete
and/or substantially depleted operating fixed
assets that are no longer in operation and
coupon payments on our subordinated notes
with no fixed maturity).
IFRS. International Financial Reporting
Standards, as issued by the International
Accounting Standards Board.
Maintenance capital expenditures.
Investments incurred with the purpose of
ensuring the company’s operational continuity.
These include capital expenditures on
projects required to replace obsolete assets
or maintain current operational levels, and
mandatory capital expenditures, which are
projects required to comply with governmental
regulations or company policies.
Net debt. Total debt (debt plus convertible
bonds and financial leases) minus cash and
cash equivalents.
Ordinary Participation Certificates (CPOs).
Issued under the terms of a CPO Trust
Agreement governed by Mexican law and
represent two of Cemex’s series A shares and
one of Cemex’s series B shares. This instrument
is listed on the Mexican Stock Exchange.
pp. Percentage points.
Prices. All reference to pricing initiatives, price
increases or decreases, refer to our prices for
our products.
Sales. When referring to reportable segment
sales, revenues are presented before
eliminations of intragroup transactions.
When referring to Consolidated Sales, these
represent the total revenues of the company
as reported in the financial statements.
SG&A expenses. Selling and administrative
expenses.
Strategic capital expenditures. Investments
incurred to increase the company’s profit-
ability. These include capital expenditures
on projects designed to increase profitability
by expanding capacity, and margin im-
provement capital expenditures, which are
projects designed to increase profitability by
reducing costs.
Total debt plus other financial obligations.
Cemex defines it as current and non-current
debt plus liabilities secured with account
receivables and leases. It is not a GAAP
measure.
Working capital equals operating accounts
receivable (including other current assets
received as payment in kind) plus historical
inventories minus operating accounts payable.
Industry
Additives refer to any material that is
added to either cement/binders or concrete
(primarily inorganic) to achieve a specific
target (e.g., alter flow properties, substitute
clinker/cement, etc).
Admixtures refer to any chemical product
(primarily organic molecules) that is added
or applied to (our core business products)
cement/binders, concrete, or aggregates to
achieve a targeted performance.
Aggregates are inert granular materials, such
as stone, sand, and gravel, which are obtained
from land-based sources (mainly quarries)
or by dredging marine deposits. While they
do not contribute to concrete’s strength, they
play a crucial role in optimizing the mix by
occupying volume and reducing the amount
of cement needed, allowing concrete to
achieve the required strength more efficiently
and cost-effectively. They give ready-mix
concrete its necessary volume and add to its
overall strength.
Blended cement Blended types of cement (or
blended cements) are composed of a reduced
amount of clinker blended with supplementary
cementitious materials (SCMs) that have
the same strength, resilience, and durability
performance as traditional cement and the
subsequently produced concrete.
Clinker is an intermediate cement product
formed through a high-temperature solid-
state reaction known as “clinkering”, in
which limestone, clay, and iron oxide are
heated in a kiln at around 1,450 degrees
Celsius. One metric ton of clinker is used to
make approximately 1.1 metric tons of gray
Portland cement.
CO2, or carbon dioxide, is a chemical
compound with the chemical formula CO2. It is
a greenhouse gas, which means it contributes
to the warming of the Earth’s atmosphere by
trapping heat that would otherwise escape
into space.
CO2 emissions refer to the release of CO2
into the atmosphere as a result of our direct
and indirect activities. These activities can
include the burning of fossil fuels (such as
coal, gas, and diesel), and emissions derived
from the decarbonization of limestone
(process emissions).
Fly ash is a combustion residue from coal-fired
power plants with cementitious capabilities
when mixed with Clinker and can be used as a
supplementary cementitious material.
Gray Ordinary Portland cement used for
construction purposes, is a hydraulic binding
agent with a traditional composition by weight
of approximately 90% to 95% clinker and up
to 5% of a minor component (usually calcium
sulfate and limestone). Blended Portland
cement has lower clinker factor, usually below
90%, which results in lower CO2 emissions.
Both traditional and blended Portland
cement, when mixed with sand, stone or other
aggregates and water, produce concrete.
Installed capacity is the theoretical annual
production capacity of a plant; whereas
effective capacity is a plant’s actual optimal
annual production capacity, which can be
10–20% less than installed capacity.
Tons means metric tons. One metric ton
equals 1.102 short tons.
271
Cemex 2024 Integrated Report
Contents
Our Company
Our Strategy
Financial Performance
Environmental Excellence
Stakeholder Engagement
Governance
Appendix
Selected Consolidated Financial
Information
Financial Information
Non-Financial Information
Scope and Boundaries of
This Report
Cemex’s Materiality Assessment
Stakeholder Engagement
Governance
EU Taxonomy
GRI Content Index
International Sustainability
Standards Board (ISSB)
Sustainability Accounting
Standards Board Response (SASB)
Task Force on Climate-related
Financial Disclosure Response
(TCFD)
• Terms We Use
Cautionary Statement Regarding
Forward-Looking Statements
Investor, Contact and Feedback
Information
Petroleum coke (pet coke) is a by-product
of the oil refining coking process that can
be incorporated into the cement production
process as fuel, in substitution of other
primary fuels such as natural gas or coal.
Portland Cement is a hydraulic binding
agent that hardens even under water and
which, when mixed with aggregates and
water, produces a composite material
typically referred to as concrete.
Ready-mix concrete is a mixture of cement,
aggregates, and water that is produced
through a central batching process and
transferred to a ready-mix truck for delivery
or is mixed directly in the ready-mix truck
(dry batching process).
Slag is a by-product of smelting ore to
purify metals.
Urbanization Solutions is one of our
four core businesses. It is a business
that complements our value offering of
products and solutions, looking to connect
with the broader metropolis ecosystem,
address urbanization challenges, and
provide means to all stakeholders in
the construction value chain to enable
sustainable urbanization by focusing on
four market segments: performance
materials, circularity, industrialized
construction, and related services.
White cement is a specialty Portland
cement used primarily for decorative
purposes with the same or higher
performance of gray Portland
cement. The white color of the
cement is typically (but not limited to)
achieved by reducing the iron-bearing
phases in clinker to a minimum.
272 Cemex 2024 Integrated Report
Contents
Our Company
Our Strategy
Financial Performance
Environmental Excellence
Stakeholder Engagement
Governance
Appendix
Selected Consolidated Financial
Information
Financial Information
Non-Financial Information
Scope and Boundaries of
This Report
Cemex’s Materiality Assessment
Stakeholder Engagement
Governance
EU Taxonomy
GRI Content Index
International Sustainability
Standards Board (ISSB)
Sustainability Accounting
Standards Board Response (SASB)
Task Force on Climate-related
Financial Disclosure Response
(TCFD)
Terms We Use
• Cautionary Statement Regarding
Forward-Looking Statements
Investor, Contact and Feedback
Information
Cautionary Statement
Regarding Forward-Looking Statements
Except as the context otherwise may require,
references in this report to “Cemex,” “we,”
“us,” or “our,” refer to Cemex, S.A.B. de C.V.
and its consolidated entities. The information
included in this report contains forward-looking
statements within the meaning of Section 27A
of the Securities Act of 1933, as amended,
and Section 21E of the Securities Exchange
Act of 1934, as amended. We intend these
forward-looking statements to be covered by
the “safe harbor” provisions for forward-looking
statements within the meaning of the US Private
Securities Litigation Reform Act of 1995. These
forward-looking statements and information
are necessarily subject to risks, uncertainties,
and assumptions, including but not limited to
statements related to Cemex’s plans, objectives,
and expectations (financial or otherwise), and
typically, , these statements can be identified by
the use of words such as “will,” “may,” “assume,”
“might,” “should,” “could,” “continue,” ‘would,”
“can,” “consider,” “anticipate,” “estimate,”
“expect,” “envision,” “plan,” “believe,” “foresee,”
“predict,” “potential,” ‘target,” “goal,” “strategy,”
“intend,” “aimed” or other forward-looking
words. These forward-looking statements reflect,
as of the date such forward-looking statements
are made, unless otherwise indicated, Cemex’s
expectations and projections about future events
based on Cemex’s knowledge of present facts
and circumstances, and assumptions about
future events. These forward-looking statements
and information are necessarily subject to risks,
uncertainties, and assumptions, including but
not limited to statements related to Cemex’s
plans, objectives, and expectations (financial
or otherwise). Although Cemex believes that its
expectations are reasonable, we can give no
assurance that these expectations will prove to
be correct, and actual results may vary materially
from historical results or those anticipated by
forward-looking statements due to various
factors. Among others, such risks, uncertainties,
assumptions and other important factors that
could cause results to differ, or that otherwise
could have an impact on us or our consolidated
entities include those discussed in Cemex’s most
recent annual report filed on Form 20-F and
those detailed from time to time in Cemex’s
other filings with the Securities and Exchange
Commission and the Mexican Stock Exchange
(Bolsa Mexicana de Valores), which factors are
incorporated herein by reference. Such factors
also include, but are not limited to:
• changes in general economic, political and
social conditions, including new governments
and decisions implemented by such new
governments, elections, changes in inflation,
interest and foreign exchange rates,
employment levels, population growth,
any slowdown in the flow of remittances
into countries where we have operations,
consumer confidence and the liquidity of the
financial and capital markets in Mexico, the
U.S., the European Union, the UK or other
countries in which we operate;
• the cyclical activity of the construction
sector and reduced construction activity in
our end markets;
• our exposure to sectors that impact our and
our clients’ businesses, particularly those
operating in the commercial and residential
construction sectors, and the infrastructure
and energy sectors;
• volatility in pension plan asset values
and liabilities, which may require cash
contributions to the pension plans;
• changes in spending levels for residential
and commercial construction;
• the availability of short-term credit lines or
working capital facilities, which can assist us
in connection with market cycles;
• any impact of not maintaining investment-
grade debt rating on our cost of capital and
on the cost of the products and services we
purchase;
• availability of raw materials and related
fluctuating prices of raw materials, as well as
of goods and services in general, in particular
increases in prices as a result of inflation;
• our ability to maintain and expand our
distribution network and maintain favorable
relationships with third parties who supply us
with equipment and essential suppliers;
• competition in the markets in which we offer
our products and services;
• the impact of environmental cleanup
costs and other remedial actions, and
other environmental, climate and related
liabilities relating to existing and/or divested
businesses, assets and/or operations;
• our ability to secure and permit aggregates
reserves in strategically located areas;
• the timing and amount of federal, state and
local funding for infrastructure;
• changes in our effective tax rate;
• our ability to comply with regulations and im-
plement technologies and other initiatives that
aim to reduce and/or capture CO2 emissions in
jurisdictions with carbon regulations in place or
in countries in which we operate;
• the legal and regulatory environment,
including environmental, energy, tax,
antitrust, export controls, human rights,
diversity, equality and inclusion matters, and
labor welfare, acquisition-related rules and
regulations in the countries and regions in
which we operate;
• the effects of currency fluctuations on our
results of operations and financial conditions;
• our ability to satisfy our obligations under our
debt agreements, the indentures that govern
our outstanding notes, and our other debt
instruments and financial obligations, including
our subordinated notes with no fixed maturity;
• adverse legal or regulatory proceedings or
disputes, such as class actions or enforcement
or other proceedings brought by any third-
parties, government and regulatory agencies;
• our ability to protect our reputation;
• our ability to consummate asset sales or
consummate asset sales in terms favorable
to Cemex, fully integrate newly acquired
businesses, achieve cost-savings from our
cost-reduction initiatives, implement our
pricing initiatives for our products, and
generally meet our business strategy’s goals;
• the increasing reliance on information
technology infrastructure for our sales,
invoicing, procurement, financial statements,
and other processes that can adversely
affect our sales and operations in the event
that the infrastructure does not work as
intended, experiences technical difficulties,
or is subjected to invasion, disruption, or
damage caused by circumstances beyond our
control, including cyber-attacks, catastrophic
events, power outages, natural disasters,
computer system or network failures, or
other security breaches;
• the effects of climate change, in particular
reflected in weather conditions, including
but not limited to excessive rain and snow,
shortage of usable water, and natural
disasters, such as earthquakes and floods,
that could affect our facilities or the markets
in which we offer our products and services or
from where we source our raw materials;
273 Cemex 2024 Integrated Report
Contents
Our Company
Our Strategy
Financial Performance
Environmental Excellence
Stakeholder Engagement
Governance
Appendix
Selected Consolidated Financial
Information
Financial Information
Non-Financial Information
Scope and Boundaries of
This Report
Cemex’s Materiality Assessment
Stakeholder Engagement
Governance
EU Taxonomy
GRI Content Index
International Sustainability
Standards Board (ISSB)
Sustainability Accounting
Standards Board Response (SASB)
Task Force on Climate-related
Financial Disclosure Response
(TCFD)
Terms We Use
• Cautionary Statement Regarding
Forward-Looking Statements
Investor, Contact and Feedback
Information
• trade barriers, comprising tariffs or import
taxes, including those imposed by the United
States to key markets in which Cemex
operates, in particular Mexico and the EU,
and changes in existing trade policies or
changes to, or withdrawals from, free trade
agreements, including the United States-
Mexico-Canada Agreement;
• availability and cost of trucks, railcars, barges
and ships, as well as their licensed operators
and drivers, for transport of our materials;
• labor shortages and constraints;
• our ability to hire, effectively compensate
and retain our key personnel and maintain
satisfactory labor relations;
• our ability to detect and prevent money
laundering, terrorism financing and
corruption, as well as other illegal activities;
• terrorist and organized criminal activities,
social unrest, as well as geopolitical events,
such as hostilities, war and armed conflicts,
including the current war between Russia and
Ukraine, conflicts in the Middle East, and any
insecurity and hostilities in Mexico related to
illegal activities or organized crime and any
actions any government takes to prevent
these illegal activities and organized crime;
• the impact of pandemics, epidemics, or
outbreaks of infectious diseases and the
response of governments and other third
parties, which could adversely affect, among
other matters, the ability of our operating
facilities to operate at full or any capacity,
supply chains, international operations,
availability of liquidity, investor confidence
and consumer spending, as well as the
availability of, and demand for, our products
and services;changes in the economy
that affect demand for consumer goods,
consequently affecting demand for our
products and services;
• the depth and duration of an economic slow-
down or recession, instability in the business
landscape and lack of availability of credit;
• declarations of insolvency or bankruptcy, or
becoming subject to similar proceedings;
• natural disasters and other unforeseen events
(including global health hazards such as
COVID-19); and
• our ability to implement our “Future in Action”
climate action program and achieve our
sustainability goals and objectives.
Cemex’s expectations, expected results, and/or
projections expressed in this report may not be
reached due to a number of factors and/or the
expected benefits and/or results not produced,
as any such benefits or results are subject to
uncertainties, costs, performance, and rate of
success and/or implementation of technologies,
some of which are not yet proven, among other
factors. Should one or more of these risks or
uncertainties materialize, or should underlying
assumptions prove incorrect, actual results
may vary materially from historical results,
performance, or achievements and/or results,
performance or achievements expressly or
implicitly anticipated by the forward-looking
statements, or otherwise could have an impact
on us or our consolidated entities. Forward-
looking statements should not be considered
guarantees of future performance, nor the
results or developments are indicative of
results or developments in subsequent periods.
Actual results of Cemex’s operations and the
development of market conditions in which
Cemex operates, or other circumstances
that may materialize, may differ materially
from those described in, or suggested by,
the forward-looking statements contained
herein. Any or all of Cemex’s forward-looking
statements may turn out to be inaccurate and
the factors identified above are not exhaustive.
Accordingly, undue reliance on forward-
looking statements should not be placed, as
such forward-looking statements speak only
as of the dates on which they are made. The
forward-looking statements and the information
contained in this report are made and stated
as of the dates specified in this report and are
subject to change without notice, and except
to the extent legally required, we expressly
disclaim any obligation or undertaking to
update or correct the information contained
in this report or revise any forward-looking
statements in this report, whether to reflect new
information, the occurrence of anticipated or
unanticipated future events or circumstances,
any change in our expectations regarding those
forward-looking statements, any change in
events, conditions or circumstances on which
any such statement is based, or otherwise. You
should review future reports filed or furnished
by us with the U.S. Securities and Exchange
Commission and the Mexican Stock Exchange
(Bolsa Mexicana de Valores). Market data used
in this report not attributed to a specific source
are estimates of Cemex and have not been
independently verified. Certain financial and
statistical information contained in this report
is subject to rounding adjustments. Accordingly,
any discrepancies between the totals and the
sums of the amounts listed are due to rounding.
Unless otherwise specified, all references to
records are internal records.
This report includes certain non-International
Financial Reporting Standards (“IFRS”)
financial measures that differ from financial
information presented by Cemex in accordance
with IFRS in its financial statements and
reports containing financial information. The
aforementioned non-IFRS financial measures
include “Operating EBITDA” (operating
earnings before other expenses, net plus
depreciation and amortization) and “Operating
EBITDA Margin”. The closest IFRS financial
measure to Operating EBITDA is “Operating
earnings before other expenses, net”, as
Operating EBITDA adds depreciation and
amortization to the IFRS financial measure.
Our Operating EBITDA Margin is calculated by
dividing our Operating EBITDA for the period
by our revenues as reported in our financial
statements. We believe there is no close IFRS
financial measure to compare Operating
EBITDA Margin. These non-IFRS financial
measures are designed to complement and
should not be considered superior to financial
measures calculated in accordance with IFRS.
Although Operating EBITDA and Operating
EBITDA Margin are not measures of operating
performance, an alternative to cash flows or
a measure of financial position under IFRS,
Operating EBITDA is the financial measure used
by Cemex’s management to review operating
performance and profitability, for decision-
making purposes and to allocate resources.
Moreover, our Operating EBITDA is a measure
used by Cemex’s creditors to review our
ability to internally fund capital expenditures,
service or incur debt and comply with financial
covenants under our financing agreements.
Furthermore, Cemex’s management regularly
reviews our Operating EBITDA Margin by
reportable segment and on a consolidated basis
as a measure of performance and profitability.
These non-IFRS financial measures do not have
any standardized meaning and are therefore
unlikely to be comparable to similarly titled
measures presented by other companies. Non-
IFRS financial measures presented in this report
are being provided for informative purposes
only and shall not be construed as investment,
financial, or other advice.
Also, this report includes statistical data
regarding the production, distribution,
marketing, and sale of cement, ready-mix
concrete, clinker, aggregates, and Urbanization
Solutions. Cemex generated some of this
data internally, and some were obtained from
independent industry publications and reports
that we believe to be reliable sources, that were
available as of the date of this report. We have
not independently verified this data nor sought
the consent of any organizations to refer to
their reports in this report. Cemex acts in strict
compliance of antitrust laws and as such, among
other measures, maintains an independent
pricing policy that has been independently
developed and its core element is to price
Cemex’s products and services based upon their
quality and characteristics as well as their value
to Cemex’s customers. Cemex does not accept
any communications or agreements of any type
with competitors regarding the determination
of Cemex’s prices for Cemex’s products and
services. Unless the context indicates otherwise,
all references to pricing initiatives, price
increases or decreases refer to Cemex’s prices
for its products.
274 Cemex 2024 Integrated Report
Contents
Our Company
Our Strategy
Financial Performance
Environmental Excellence
Stakeholder Engagement
Governance
Appendix
Selected Consolidated Financial
Information
Financial Information
Non-Financial Information
Scope and Boundaries of
This Report
Cemex’s Materiality Assessment
Stakeholder Engagement
Governance
EU Taxonomy
GRI Content Index
International Sustainability
Standards Board (ISSB)
Sustainability Accounting
Standards Board Response (SASB)
Task Force on Climate-related
Financial Disclosure Response
(TCFD)
Terms We Use
• Cautionary Statement Regarding
Forward-Looking Statements
Investor, Contact and Feedback
Information
IMPORTANT NOTICE
Caution about Environmental, Social and
Governance (ESG) and sustainability related
data, metrics, and methodologies.
The information contained in this report
includes non-financial metrics, estimates or
other information that are subject to significant
measurement uncertainties, which may include
the methodology, collection and verification
of data, various estimates and assumptions,
and/or underlying data that is obtained
from third parties, some of which cannot be
independently verified.
The preparation of certain information in this
report requires the application of a number of key
judgments, assumptions and estimates, including
with respect to the concept of sustainability.
The reported measures in this report reflect
good faith estimates, assumptions and
judgments at the given point in time. There
is a risk that these judgments, estimates or
assumptions may subsequently prove to be
incorrect and/or, to the extent legally required,
may need to be restated or changed.
Sustainability reporting is not yet subject to the
same globally recognized or accepted reporting
or accounting principles and rules as traditional
financial reporting. Accordingly, there is a lack
of commonly accepted reporting practices
for us to follow or align to and ESG measures
between organizations in our industry may be
non-comparable.
In addition, the maturity of underlying data,
systems and controls that support non-
financial reporting is generally considerably
less sophisticated than the systems and internal
controls for financial reporting and it also
includes manual processes. This may result
in non-comparable information between
organizations and between reporting periods
within organizations as methodologies continue
to develop and/or socialize. The further
development of accounting and/or reporting
standards for non-financial information could
materially impact the performance metrics,
data points and targets contained in this
report and the reader may therefore not be
able to compare non-financial information
performance metrics, data points or targets
from one reporting period to another, on a
direct like-for-like basis.
We plan to continue to enhance our
methodology and processes to improve the
robustness of our ESG reporting over time.
Caution about the lack of definitions or
standards.
There is currently no single globally recognized
or accepted, consistent and comparable set
of definitions or standards (legal, regulatory
or otherwise) of, nor widespread cross-market
consensus (i) as to what constitutes, a “green”,
“social” or “sustainable” or having equivalent-
labelled activity, product or asset; or (ii) as
to what precise attributes are required for a
particular activity, product or asset to be defined
as “green”, “social” or “sustainable” or such
other equivalent label; or (iii) as to climate and
sustainable funding and financing activities and
their classification and reporting.
Therefore, there is little certainty, and no
assurance or representation is given that such
activities and / or reporting of those activities
will meet any present or future expectations or
requirements for describing or classifying our
activities as “green”, “social” or “sustainable” or
attributing similar labels.
We expect policies, regulatory requirements,
standards, and definitions to be developed and
continuously evolve over time.
Caution about forward-looking ESG or
sustainability statements in this report.
Certain sections in this report contain ESG
or sustainability related forward-looking
statements, such as aims, ambitions, goals,
estimates, forecasts, plans, projections and
targets and other metrics, including but not
limited toClimate and Emissions, Business and
Human Rights (BHR), Corporate Governance,
Research & Development and partnerships,
development of products and services that
intend to address sustainability-related concerns
and sustainability related targets/ambitions
when finalized, including the implementation
technologies and other initiatives that aim to
reduce and/or capture CO2 emissions.
There are many significant uncertainties,
assumptions, judgements, opinions, estimates,
forecasts and statements made of future
expectations underlying these forward-
looking statements which could cause actual
results, performance, outcomes or events
to differ materially from those expressed or
implied in these forward-looking statements,
including, without limitation: (a) the extent and
pace of climate change, including the timing
and manifestation of physical and transition
risks, (b) the macroeconomic environment;
(c) uncertainty around future climate-related
policy, including the timely implementation and
integration of adequate government policies;
(d) the effectiveness of actions of governments,
legislators, regulators, businesses, investors,
customers and other stakeholders to mitigate
the impact of climate and sustainability-related
risks; (e) changes in customer behavior and
demand, changes in the available technology
for mitigation; (f) the roll-out of low carbon
infrastructure, and carbon capture, circular
utilization and sequestration technologies; (g)
the availability of accurate, verifiable, reliable,
consistent and comparable climate-related data;
(h) lack of transparency and comparability of
climate-related forward-looking methodologies;
(i) variation in approaches and outcomes –
variations in methodologies may lead to under
or overestimates, and consequently present
exaggerated indication of climate-related
risk; and (j) reliance on assumptions and
future uncertainty (calculations of forward-
looking metrics are complex and require many
methodological choices and assumptions).
Accordingly, undue reliance should not be
placed on these forward-looking statements.
Furthermore, changing national and
international standards, industry and scientific
practices, regulatory requirements and market
expectations regarding climate change, which
remain under continuous development, are
subject to different interpretations.
There can be no assurance that these standards,
practices, requirements and expectations will not
be interpreted differently than our understanding
when defining its sustainability related ambitions
and targets or change in a manner that substan-
tially increases the cost or effort for us to achieve
such ambitions and targets.
No offer of securities or investment.
The information, statements and opinions
contained in this report do not constitute a
public offer under any applicable legislation,
an offer to sell or solicitation of any offer to
buy any securities or financial instruments, or
any advice or recommendation with respect to
such securities or other financial instruments.
This report, the information, statements and
disclosure included in this report are not formally
part of any offering documents and are not
contractually binding.
275 Cemex 2024 Integrated Report
Investor, Contact, and Feedback Information
Exchange Listings
Bolsa Mexicana de Valores (BMV)
Mexico
Ticker Symbol: CEMEXCPO
Listed Securities: CPO
(representing two Series A shares
and one Series B share)
New York Stock Exchange (NYSE)
United States
Ticker Symbol: CX
Listed Securities: ADS
(each ADS representing 10 CPOs)
Contact and Feedback
Investor Relations
ir@cemex.com
From the U.S.: 1-877-7CX-NYSE
From other countries: +1-212-317-6000
Public Affairs
publicaffairs@cemex.com
Sustainability
sd@cemex.com
Media Relations
mediarelations@cemex.com
Headquarters
Cemex, S.A.B. de C.V.
Av. Ricardo Margain Zozaya 325
66265, San Pedro Garza Garcia, Nuevo Leon
Mexico
+52-81-8888-8888
www.cemex.com
linkedin.com/company/cemex
x.com/cemex
facebook.com/cemex
instagram.com/cemex
youtube.com/@cemex
Contents
Our Company
Our Strategy
Financial Performance
Environmental Excellence
Stakeholder Engagement
Governance
Appendix
Selected Consolidated Financial
Information
Financial Information
Non-Financial Information
Scope and Boundaries of
This Report
Cemex’s Materiality Assessment
Stakeholder Engagement
Governance
EU Taxonomy
GRI Content Index
International Sustainability
Standards Board (ISSB)
Sustainability Accounting
Standards Board Response (SASB)
Task Force on Climate-related
Financial Disclosure Response
(TCFD)
Terms We Use
Cautionary Statement Regarding
Forward-Looking Statements
• Investor, Contact and Feedback
Information