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Sustainability and innovation are integral to the business strategy of this cement company, which in recent years has invested over USD 120 million in modernizing grinding and cement dispatching technology.

ISSUE 136 | 2024

Vesna Marinkovic U.

1What are the main sustainability initiatives implemented by SOBOCE to reduce its carbon footprint?

Sustainability and innovation are part of our overarching purpose and the foundation of our business strategy; all our business efforts are focused on these principles. Among the main actions we’ve undertaken in this regard, the following stand out:

● Launching Viacha ECOFUERTE Plus Cement, which not only boasts excellent technical properties but also has a 22% lower carbon footprint compared to the most common cements on the market.

● Establishing a Sustainability Management Office to centralize and coordinate all the company’s efforts in this area.

● Publishing, for the first time, the company’s Sustainability Report under the standardized criteria of the Global Reporting Initiative (GRI), ensuring transparency, consistency, and traceability in everything we do and share about sustainability.

● Obtaining an environmental license and authorization as a waste operator for our Viacha Industrial Plant, enabling us to advance the project for co-processing refuse-derived fuels (RDF). This initiative has the potential to become a viable solution to the waste problem in La Paz.

2What innovative technologies is the company using in cement production to improve energy efficiency and minimize environmental impact?

In recent years, SOBOCE has invested over USD 120 million in modernizing the grinding and cement dispatch technology at our Viacha and Warnes plants. This modernization involved replacing traditional horizontal mills with next-generation vertical grinding systems, which are highly energy-efficient and enable the production of finer cements with higher natural component additions, resulting in a lower carbon footprint.

The modernization process, carried out under eco-efficiency criteria, also included implementing dust capture and reintegration systems that meet the highest global standards and ensuring 100% water recirculation in the production process (zero discharges into water bodies).

Additionally, at our Viacha plant, we are installing a new chlorine capture and reintegration system (bypass filter), which will enable the use of alternative fuels and the ongoing optimization of our carbon footprint.

3How is SOBOCE managing raw material extraction to ensure responsible and sustainable practices?

At SOBOCE, we view sustainability as achieving balance among the interests of all our stakeholders. In this regard, our relationships with the communities surrounding our mining operations are based on mutual respect and inclusive business models. These models allow our neighbors to participate in the value chain of our industry, particularly in the extraction and transportation of raw materials required for cement production. We support and advise these communities to ensure responsible extraction practices.

Another aspect of our engagement with neighboring communities involves Corporate Social Responsibility (CSR) programs in areas such as public infrastructure, education, and sports. These initiatives are executed under five-year agreements in coordination with municipalities and local organizations. It is worth noting that the company has invested 3.7 million Bolivianos in these programs.

4What training programs does SOBOCE offer its staff to promote safe and sustainable workplace practices?

The safety and health of everyone working at SOBOCE are our top priorities. To this end, we continuously strengthen our safety system and culture through initiatives such as:

● Measuring the safety climate and culture at our cement plants, concrete plants, precast plants, and logistics areas.

● Executing the Visible Leadership Program (941 activities carried out by 87 leaders).

● Implementing the Safety Leaders Program and the “Zero is Possible” campaign, which covers all SOBOCE sites.

● Identifying unsafe conditions and acts using a mobile app available to all our collaborators.

It’s also worth highlighting that since 2004, we’ve maintained an Integrated Management System certified across our Viacha, Warnes, and El Puente cement plants; Ready Mix plants in Santa Cruz, La Paz, Cochabamba, Tarija, and Oruro; the Viliroco precast plant; and our central and commercial offices in La Paz, Santa Cruz, Cochabamba, and Tarija. SOBOCE is the company with the largest number of certified sites nationwide.

5What measures does the company take to reduce and manage production waste?

In waste management, our actions are focused on prevention, reduction, reuse, and recycling. 100% of the water used in cement and concrete operations is treated and recirculated back into production processes.

Investments in the modernization of our cement plants have led to a sustained reduction in dust emissions. All our cement plants (Viacha, Warnes, and El Puente) are equipped with enclosed systems for the transport and storage of raw materials, as well as filtration equipment to collect and reintegrate all the dust generated during production. This significantly limits and reduces the emission of dust and particles into the environment.

Lastly, we implement our program called “Waste Hunters,” which includes environmental awareness initiatives such as PET bottle collection campaigns, cleanup drives, and the development of projects for waste reuse, among other activities. The management of hazardous and non-hazardous waste generated by our operations is conducted in accordance with our integrated policy and sustainability strategy, which covers waste management, operational commitments, and applicable legal requirements.

6How does SOBOCE evaluate the social and environmental impact of its operations on communities in Bolivia?

In 2023, we began preparing our Sustainability Report based on the criteria and standards of the Global Reporting Initiative (GRI). One of the main components of this report is the materiality assessment of the impacts of our operations on our surroundings and stakeholders.

The materiality determination process enables us to understand the organizational context, identify current and potential impacts, and define concrete actions to strengthen positive impacts while eliminating or mitigating negative ones. SOBOCE’s materiality matrix and Sustainability Report are available on our website, www.soboce.com. We invite you to review them.

7What role does research play in the pursuit of more environmentally friendly or lower-impact cement products?

Research and development of new products and integrated construction solutions represent our primary commitment to a more sustainable future for the industry. Here are three specific actions we are undertaking in the areas of innovation and research:

● Creation of the Innovation and Technical Advisory Center (CIATEC): Located in La Paz, this specialized construction materials laboratory focuses on researching and developing environmentally friendly cements, concretes, and building materials tailored to meet specific client needs.p>

● The INNOVA Program: SOBOCE is currently managing over 60 projects in product development (in collaboration with CIATEC), process optimization, new business ideas, alternative energy, and more.

● Launch of new products and integrated solutions:

• VIACHA ECOFUERTE PLUS Cement, which has the lowest carbon footprint in the national market and exceptional characteristics in terms of workability and initial strength.

• Warnes ULTRA Water-Repellent Cement, a practical solution for managing humidity in tropical areas and specific applications.

• The PREMIUM Concrete Line, offering next-generation products tailored to the specific needs of our customers.

…we support and advise communities to ensure responsible raw material extraction."