< Risks and Uncertainties
Operational risks
Risks arising from the climate and natural disasters:
The Group operates in countries and areas such as Greece, Egypt, Turkey and Florida in the U.S.A. which are exposed to risks arising from natural (climatic and geological) phenomena such as typhoons, sand storms, earthquakes etc. Amongst the measures adopted by the Group to avert the disastrous consequences of such phenomena, is the adoption of design standards which are stricter than those prescribed by the relevant legislation.
Additionally, the Group has in place emergency plans which aim at the safeguarding of its industrial infrastructure and the protection of human life among its personnel.
Risks associated with production cost:
The consumption of thermal energy, electricity and raw materials constitute the most important elements of the Group’s cost base. Moreover, the fluctuation in the price of fossil fuels poses a risk to the cost of production. In order to mitigate the effects of such a risk, the Group invests in the replacement of fossil fuels by alternative fuels.
As regards electricity, it is expected that prices will increase significantly going forward. In order to address this risk, the Group, among other actions, invests in low electrical consumption machinery and in the development and operation of specialised energy management systems.
Ensuring access to the required quality and quantity of raw materials is an additional priority taken into account when planning new investments.
As regards existing units, the Group ensures the adequate supply of raw materials for the duration of the life of its industrial units.
The Group also invests in the use of alternative raw materials in order to gradually lessen its dependence on natural raw materials. To this end, the Group has set specific quantifiable targets for the substitution of natural raw materials by alternative raw materials such as natural waste and is closely monitoring the evolution of this activity.
Risks regarding safety at work:
Safety at work for our employees forms the pinnacle of Group priorities and is a precondition for the operation of our plants.
The Group currently has underway a programme aiming at improving the safety culture across all Group activities which among other things includes the manning of all productive units with an adequate number of safety officers. Additionally, the Group applies broad training programmes for the systematic necessary training and education of employees and has put in place systems and procedures, adherence to which is constantly monitored by the Company’s Health and Safety Division. Results to date, as regards the Group’s performance in the realm of safety, are satisfactory compared to peers in the industry who participate in the international Initiative for Sustainable Development in the Cement Industry.
Environmental risks:
Protection of the environment and sustainable development are core principles for the Group. To that end, the Group applies policies over and above the prescriptions of the relevant local legislation in the countries where it is active.
Furthermore, in order to limit the possibility of environmental damage, the Group systematically invests in Best Available Techniques for the protection of the environment.
The Group has taken early action against climate change participating since 2003 in the Cement Sustainability Initiative – CSI of the World Business Council for Sustainable Development and voluntarily committing to the reduction of CO2 emissions within specific targets.
Moreover, the Group monitors closely proposed changes in legislation under way as regards the protection of the environment and undertakes the necessary actions for their implementation in advance so as to avoid the risk of non-timely compliance, once new regulations come into effect.