Item 1. Business
Item 1. Business
Overview
CRH is a leading provider of building materials solutions that build, connect and improve our world. In 2023, the Company generated $34.9 billion of revenues, $3.1 billion of net income and $6.2 billion of Adjusted EBITDA*. 1 Since formation in 1970, CRH has evolved from being a supplier of base materials to providing end-to-end value-added solutions that solve complex construction challenges for our customers. CRH works closely with the customer across the entire project lifecycle from planning, design, manufacture, installation and maintenance through to end-of-life recycling, using our engineering and innovation expertise to provide superior materials, products and services.
The Company integrates essential materials (aggregates and cement), value-added building products as well as construction services, to provide our customers with complete end-to-end solutions. CRH’s capabilities, innovation and technical expertise enable it to be a valuable partner for transportation and critical utility infrastructure projects, complex non-residential construction and outdoor living solutions.
CRH’s business addresses the needs of customers across infrastructure, non-residential and residential construction markets. In 2023, approximately 35% of revenues came from infrastructure (such as highways, streets, roads, bridges, and critical utility infrastructure), 30% from non-residential construction (including construction and maintenance of manufacturing, datacenter and distribution facilities) and 35% from residential construction. 55% of revenues came from sales to new-build construction, while 45% of revenues came from repair and remodel activity.
Operating in 29 countries, the Company has market leadership positions in North America and Europe. In 2023, 72% of net income and 73% of Adjusted EBITDA* was generated in North America. The United States is expected to be a key driver of future growth for CRH due to continued economic expansion, a growing population and significant public investment in construction. Our European business, which benefits from strong economic and construction growth prospects across Central and Eastern Europe as well as recurring repair and remodel demand in Western Europe, is an important strategic part of the Company and CRH intends to continue to expand its operations across the region. In both geographies there is significant government support for infrastructure and increasing demand for integrated solutions in major infrastructure and commercial projects.
CRH has a proven track record in value creation through acquisition which over the last decade has accounted for approximately two-thirds of the Company’s growth. We achieve this by acquiring businesses at attractive valuations and creating value by integrating them with our existing operations and generating synergies. The Company takes an active approach to portfolio management and continuously reviews the competitive landscape for attractive investment and divestiture opportunities to deliver further growth and value creation for shareholders. In 2023, CRH completed 22 acquisitions for a total consideration of $0.7 billion compared with $3.3 billion in 2022. The largest acquisition in 2023 was in our Americas Building Solutions segment where the Company completed the acquisition of Hydro International, a leading provider of stormwater and wastewater solutions in North America and Europe.
In 2023, CRH transitioned its primary stock exchange listing from the London Stock Exchange (LSE) to the NYSE. CRH currently maintains a primary listing on the NYSE and a standard listing on the LSE for its ordinary shares, each listing represented by the ticker symbol “CRH”. CRH believes that its NYSE primary listing will bring increased commercial, operational and acquisition opportunities for the Company, further accelerating its integrated solutions strategy and delivering even higher levels of profitability, cash and returns for its shareholders.
Customer Solutions
CRH’s differentiated strategy integrates building materials, products and services by providing them to customers as complete solutions that solve key challenges across the built environment .
Essential Materials
Essential Materials, consisting of aggregates and cement, are the foundation of CRH’s solutions strategy. Our vertically integrated businesses manufacture and supply these materials for use extensively in a wide range of construction applications, ranging from major road and infrastructure projects to the development and refurbishment of commercial buildings, private residences, public spaces and communities. Our deep materials and market knowledge, along with our extensive network of locations and assets, drives our performance and helps us deliver value to our customers. Customers typically range from national, regional and local governments to contractors and other construction product and service providers.
Road Solutions
CRH is a leading provider of solutions for sustainable road construction in North America and Europe. With our capabilities in manufacturing, installation, maintenance and circularity, we deliver a range of innovative solutions for our customers to better connect our communities, from major public highway infrastructure projects to residential roads, airports and parking lots. As responsible operators considerate of our environmental impact, we optimize the use of recycled materials in our paving services, thereby reducing waste, emissions and energy consumption. Fully integrated with our Essential Materials businesses, we have developed our Road Solutions offering to provide customers with quality, flexibility, speed, expertise and convenience through our deep market knowledge and highly capable team of professionals.
Building and Infrastructure Solutions
Our Building & Infrastructure Solutions connect, protect and transport critical water, energy and telecommunications infrastructure to help solve complex construction challenges. We integrate design, materials, products and engineering to enable the transition to a more sustainable and resilient built environment with a particular focus on the below-ground built environment where we are a leading provider of multi-material infrastructure that connects and protects the critical utilities that enhance the daily lives of millions of people.
* Represents a non-GAAP measure. See the discussion within 'Non-GAAP Reconciliation and Supplementary Information' on pages 38 to 40. 1
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Outdoor Living Solutions
CRH’s Outdoor Living Solutions integrate specialized materials, products and design features to enhance the quality of private and public spaces. We help our customers in residential and commercial markets create unique outdoor settings by providing solutions for repair, remodel and new construction projects. Our business is closely connected to our customers through a broad geographic network as well as a comprehensive suite of products and services spanning hardscapes, masonry, fencing, railing, packaged lawn and garden products, pool finishes and composite decking. We place a strong focus on anticipating the needs of our customers and constantly strive to exceed their expectations. We do this by continually enhancing our offering through innovation, portfolio expansion and multifaceted collaboration.
Innovation and Sustainability
We are accelerating investment in innovation to develop a higher-performing and more sustainable built environment. Through our $250 million Venturing and Innovation Fund we are supporting the development of new technologies and innovative solutions to meet the increasingly complex needs of customers and evolving trends in construction. Our ability to replicate and scale our innovation and technical expertise between Europe and North America provides us with opportunities for further growth. Through our Innovation Center for Sustainable Construction (ICSC), we have a global network of experts across our businesses collaborating in the research, development and replication of innovative solutions. In addition, our CRH Ventures platform works in partnership with industrial leaders (such as Shell, Volvo, Caterpillar and others) and academic institutions to pilot and scale cutting-edge and innovative technologies.
Sustainability is deeply embedded in all aspects of our business and sustainability leadership is a key pillar of CRH’s purpose. CRH’s building materials solutions play an important role in shaping a more sustainable built environment and in 2023, revenues from products with enhanced sustainability attributes 1 was $13.9 billion, an increase of 10% compared with 2022 and an increase of 22% compared with 2021.
Our sustainability framework identifies three global challenges for society and the built environment; water, circularity and decarbonization. Our ability to solve these challenges by uniquely integrating our materials, products and services, positions us to capture further value and accelerate growth across CRH.
• Water: We are advancing solutions to address global water challenges by enhancing flood resilience and improving water management. This includes upgrading water infrastructure, improving wastewater treatment, recharging groundwater and conserving water across the supply chain.
• Circularity: We are reimagining the way materials are used to enable a more circular economy. Our efforts include preserving natural resources, recycling and reusing construction and waste materials, facilitating resource-efficient buildings and infrastructure and building more circular supply chains.
• Decarbonization: We are developing innovative solutions to support a low-carbon future. Our goals include reducing our absolute carbon emissions, minimizing operational carbon from our products and creating energy-efficient solutions to facilitate the clean energy transition.
By continuing to meet the changing needs of our customers and society, we aim to drive further growth and value creation. In addition, we are striving to create a positive impact on the natural world, helping our people and communities to thrive. We stand out as a responsible business by collaborating to ensure a more sustainable supply chain and embedding responsible conduct at each level throughout our organization.
Business Segment Information
In the year ended December 31, 2023, CRH was organized through four segments across two divisions.
Americas Division
CRH’s Americas Division comprises two segments: Americas Materials Solutions and Americas Building Solutions. The North American market’s positive fundamentals, including strong population growth and significant public investment in construction, is driving demand for CRH’s materials, products and services. Over several decades, CRH has established leadership positions across the United States and Canada. The Division employs approximately 46,400 people at 1,949 locations across 48 states of the United States and seven Canadian provinces.
Americas Materials Solutions
Americas Materials Solutions provides building materials for the construction and maintenance of public infrastructure and commercial and residential buildings in North America. The primary materials produced by this segment include aggregates, cement, readymixed concrete and asphalt. This segment also provides paving and construction services for customers.
In 2023, this segment accounted for approximately 44% of CRH’s total revenues and 50% of Adjusted EBITDA. Approximately 50% of segment revenues came from infrastructure, 30% from non-residential construction and 20% from residential construction. New-build construction accounts for approximately 50% of segment revenues while the remaining 50% came from repair and remodel activity.
The Americas Materials Solutions segment leverages our strong market knowledge, deep industry expertise and extensive array of essential materials to implement CRH’s differentiated strategy, offering value-added, end-to-end solutions which combine different types of materials, products and services to satisfy multiple customer needs. In turn, this enables CRH to provide a value-enhancing, one-stop-shop experience, saving time and reducing logistical complexity for customers. Through this approach CRH aims to reduce lead times and complexity, deepening relationships, driving repeat business and increasing the share of customer wallet spent on CRH products and services.
Vertical integration is a defining characteristic within this segment, enabling us to optimize production throughout the value chain and to capture greater value. In order to support its operations, the Company has established a network of long-term reserves at quarry locations, predominantly adjacent to urban areas where demand for its materials and products is strongest.
Americas Building Solutions
Americas Building Solutions manufactures, supplies and delivers high quality, value-added, innovative solutions for the built environment in communities across North America. Solutions in this segment are highly specified, designed and engineered thereby adding value for the customer. This segment offers solutions serving complex critical utility infrastructure (such as water, energy, transportation and telecommunications projects) and outdoor living solutions for enhancing private and public spaces.
1 Revenues from products with enhanced sustainability attributes is defined as revenues derived from those products that incorporate any, or a combination of; recycled materials; are produced using alternative energy and fuel sources; have a lower carbon footprint as compared to those products using traditional manufacturing processes; and are designed to specifically benefit the environment.
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In 2023, Americas Building Solutions accounted for approximately 20% of CRH’s total revenues and 23% of Adjusted EBITDA . Approximately 65% of segment revenues came from sales to residential, 25% to the non-residential market and 10% to infrastructure. Repair and remodel activity accounted for approximately 60% of segment revenues, with the remaining 40% from new-build construction.
This segment analyzes market trends, including increasing urbanization, demand for more sustainable construction and evolving customer preferences to devise high quality, effective building product solutions. CRH’s ability to provide end-to-end solutions which are tailored to the specific requirements of individual customer projects helps to drive competitive advantage and deliver sustainable growth in this segment.
Europe Division
CRH’s Europe Division comprises two segments: Europe Materials Solutions and Europe Building Solutions. In Eastern Europe, we see high growth potential through strong infrastructure activity underpinned by European Union (EU) funding mechanisms. In Western Europe, CRH’s businesses operate in markets which are more stable and developed with resilient demand for repair and remodel activity. In both regions, CRH is experiencing increasing demand for its integrated end-to-end solutions offering. The Division employs approximately 32,100 people at 1,441 locations across 28 countries .
Europe Materials Solutions
Europe Materials Solutions provides building materials for the construction of public infrastructure and commercial and residential buildings across Europe. The primary materials produced in this segment include aggregates, cement, readymixed concrete, asphalt and concrete products.
In 2023, this segment accounted for 28% of CRH’s total revenues and 22% of Adju sted EBITDA. Approximately 35% of segment revenues came from infrastructure, 35% from residential construction, and 30% from non-residential construction. New-build construction accounted for approximately 65% of segment revenues, with the remaining 35% from repair and remodel activity.
The segment has extensively integrated its operations, enabling it to provide essential materials, value-added products and services and complete solutions to customers. CRH has established itself as a market leader through this integrated approach, particularly in European regions, where the Company’s cement, readymixed concrete and aggregates operations have been integrated with its precast and concrete products businesses, enabling strong value creation through commercial excellence and performance improvement initiatives.
Europe Building Solutions
Europe Building Solutions combines materials, products and services to produce a wide range of architectural and infrastructural solutions for use in the building and renovation of critical utility infrastructure, commercial and residential buildings and outdoor living spaces. This business serves the growing demand across the construction value chain for innovative and value-added products and services.
In 2023, this segment accounted for 8% of CRH’s total revenues and 5% of Adjusted EBITDA. Approximately 40% of segment revenues came from residential construction, 35% from non-residential construction, and 25% from infrastructure. New-build construction accounted for approximately 80% of segment revenues, with the remaining 20% from repair and remodel activity.
This business integrates design, engineering, materials and products to enable the transition to a m ore sustainable and resilient built environment.
Materials and Products
The following materials and products are produced and supplied by CRH’s businesses.
Aggregates
Aggregates are naturally occurring mineral deposits such as granite, limestone and sandstone. CRH extracts these deposits and processes them for sale as aggregates products such as sand, gravel, and crushed stone. Typically, aggregates are used in road and rail infrastructure, building foundations and in the production of products including concrete and asphalt. Annualized aggregates sales volumes 2 in 2023 for the Americas Division and Europe Division were 213.9 million tons and 104.0 million tons, respectively.
Cement
Cement is produced from limestone reserves and is the primary binding agent in the production of concrete products, including readymixed concrete and mortars, which are used extensively throughout the built environment. Annualized cement sales volumes 2 in 2023 for the Americas Division and Europe Division were 13.4 million tons and 30.9 million tons, respectively.
Concrete
Concrete is a highly versatile building material, comprised of aggregates bound together with cement and water. Readymixed concrete is the most commonly used form of concrete. It forms the foundations of buildings and homes, roads, tunnels and bridges, water management systems and clean energy structures. While readymixed concrete is supplied to customers for on-site casting, CRH’s infrastructural concrete businesses produce and supply precast and pre-stressed concrete products such as floor and wall elements, beams and vaults, pipes and manholes. These products are delivered to, and assembled at, construction sites where they are used throughout the modern built environment. Annualized readymixed concrete sales volumes 2 in 2023 for the Americas Division and Europe Division were 16.1 million cubic yards and 18.3 million cubic yards, respectively.
Asphalt
Asphalt consists of aggregates bound together with bitumen and is widely used as a surface material in roads, bridges, airport runways, sidewalks and other amenities. In recent years, the use of recycled materials in asphalt has increased considerably. Using materials from existing road surfaces to produce new asphalt reduces the need for virgin material demand, extends the life of our aggregates reserves and contributes to reducing the carbon footprint of the product. Recycled Asphalt Pavement (RAP) and Recycled Asphalt Shingles (RAS) are used extensively by CRH businesses to produce new asphalt products for road and other surfaces. Annualized asphalt sales volumes 2 in 2023 for the Americas Division and Europe Division were 52.5 million tons and 10.2 million tons, respectively.
2 Annualized sales volumes reflect the full-year impact of acquisitions and divestitures during the year and may vary from actual volumes sold.
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Building Products
CRH’s Building & Infrastructure Solutions businesses manufacture concrete and polymer-based products such as underground vaults, drainage systems, utility enclosures and modular precast structures which are typically supplied to the water, energy, telecommunications and railroad markets. The businesses also provide a range of engineered steel and polymer-based anchoring, fixing and connecting solutions for a variety of new-build construction applications.
CRH’s Outdoor Living Solutions businesses manufactures a variety of concrete masonry, hardscape and related products including pavers, blocks and curbs, retaining walls and slabs. The businesses also produces fencing and railing systems, composite decking, lawn and garden products and packaged concrete mixes. These products are supplied to residential, commercial & do-it-yourself (DIY) construction markets.
Key Trends and Opportunities
Key trends affecting the development of CRH's business include:
• Population growth and urbanization driving increasing demand for construction;
• Economic development and further investment in infrastructure, commercial and residential projects; and
• Recurring need to repair, maintain and upgrade the built environment as existing buildings and infrastructure age and wear.
In addition, there are several industry-specific trends that are shaping how CRH evolves to meet the needs of its customers:
• Unprecedented levels of funding support for infrastructure, critical utilities and the onshoring of manufacturing activity;
• An evolving regulatory landscape driving increasing customer demand for innovative, end-to-end solutions to deliver a more resilient and sustainable built environment; and
• Supply-side dynamics, such as labor constraints, driving increasing investment in automation, technology and digital solutions.
Environmental and Governmental
Regulations
Our operations in the United States are subject to federal, state and local laws, while our European operations are primarily subject to national environmental laws and regulations stemming primarily from EU directives and regulations. Our operations elsewhere are typically subject to both national and local regulatory requirements.
Compliance and Costs
Compliance with applicable regulations requires capital investment and ongoing expenditures for the operation and maintenance of systems and implementation of improvement programs. These include investments in licensing, permitting and monitoring, waste and water management plans, reductions in air emissions and energy consumption, promotion and protection of biodiversity, education and training, as well as employment of environmental specialists within CRH. These capital investments and expenditures were not material to CRH’s earnings, results of operations or financial condition in 2023 and 2022.
Management believes that its current provision for environmental and remediation costs is reasonable and that any potential non-compliance at its operations and facilities with applicable environmental laws and regulations is not likely to have a material adverse effect on CRH’s operations or financial condition. See Item 3. “Legal Proceedings" and Note 13 “Asset retirement obligations” in Item 8. “Financial Statements and Supplementary Data” of this Annual Report on Form 10-K.
Land and Environmental Management
We generally own or lease the real estate on which our main raw materials, aggregates and other minerals are located. As part of our vertically integrated business model, we have established an extensive global network of quarries comprised of 1,235 properties, of which 226,153 hectares of land are owned and 97,046 hectares are leased. These quarries provide us with the raw materials to manufacture various primary building materials, such as aggregates, cement, asphalt, readymixed concrete and concrete products. We offer these products directly for sale and integrate them into our downstream products and services. Materials produced by our aggregates and cement businesses, for example, can be supplied to our downstream businesses for use in our Road Solutions, Outdoor Living Solutions and Building & Infrastructure Solutions businesses.
Our operations are typically required to comply with government land use plans and zoning requirements. We are required by government authorities to obtain permits to operate certain workplaces, such as quarries, mines, production and distribution facilities, including water rights required to operate many of our sites. The terms and general availability of government permits required to conduct our business influence the scope of our operations on the respective sites. We are also required to obtain permits and adhere to applicable restrictions, often including establishing appropriate environmental management systems, to minimize the risk that necessary permits are revoked, modified or not renewed.
CRH is also subject to multiple laws that require the Company, as a mine operator, to reclaim and restore properties after mining activities have ceased. As a result we are required to record reasonable provisions for such reclamation in our Consolidated Financial Statements.
From time to time, we are required by law and/or contractual obligations to investigate and remediate releases of hazardous substances at our manufacturing sites and at sites where hazardous substances from our operations may have been disposed of. Where we have been required to incur such expenses, we are required to record reasonable provisions for such remediation in our Consolidated Financial Statements.
The Clean Air Act in the United States and similar laws elsewhere require that certain of our facilities, including our cement plants, obtain and maintain air emissions permits that subject them to pollution control requirements and require pre-approval for constructing certain facilities. CRH is also required to comply with laws designed to promote biodiversity and protect ecosystems. From time to time, CRH may be required to install additional equipment or technologies to remain in compliance with such environmental regulations.
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Climate Change
We believe the transition to a more sustainable built environment represents a commercial opportunity for CRH. Certain government legislation designed to accelerate the energy transition has had a positive impact on our business and we see increasing opportunities as public policy changes begin to increase demand for low-carbon, sustainable products. We are well-positioned to capitalize on this increased demand, which is underpinned by significant United States and EU funding programs and regulatory policies. In particular, the $1.2 trillion Infrastructure Investment and Jobs Act (IIJA) is the single largest long-term infrastructure investment in the history of the United States. In 2023, CRH’s operating companies across the United States helped to deliver multiple infrastructure projects receiving funding under the IIJA.
As part of our ambition to be a net-zero business by 2050, CRH has announced an absolute carbon dioxide (CO 2 ) emissions reduction target of 30% by 2030 (from a 2021 base year) inclusive of organic business growth. The Science Based Targets initiative (SBTi) has validated our targets 3 in line with a 1.5°C trajectory. A significant portion of the actions required to deliver on the 2030 roadmap are based on known technologies, well-established operational excellence programs and activities in which CRH has a proven track record of delivery. CRH’s roadmap includes incremental capital expenditure of approximately $150 million per annum on average, which is subject to strict internal investment criteria and the net business benefit is expected to increase revenues and profitability.
In 2023, our Scope 1 and 2 absolute carbon emissions decreased by 8%, from 33.6 million tonnes 4 in 2022 to 31.0 million tonnes in 2023, as we executed against the levers in our decarbonization roadmap and benefited from lower clinker production. Our cement-specific net CO 2 emissions per tonne of cementitious product amounted to 562kg (566kg in 2022). We are also continuing to advance our contribution to the circular economy, preserving scarce natural resources and using more recycled materials in construction. In 2023, we recycled 43.9 million tonnes of by-products and wastes from other industries as raw materials and fuels in our products and processes (42.4 million tonnes in 2022).
CRH will continue to invest in solutions that strengthen circularity and resilience to climate change in the built environment.
Supply Chain
CRH employs a dedicated global purchasing team and its supply chain combines vertical integration as well as external suppliers and service providers to deliver products to customers in various markets.
As outlined on page 6, CRH owns or leases the real estate on which its main raw materials are located and has established an extensive global network of quarries. As part of its vertically integrated business model, the raw materials from these quarries are used to manufacture primary building materials, such as aggregates, cement, asphalt, readymixed concrete and concrete products, which are offered directly for sale or integrated into downstream products and services.
CRH is a significant purchaser of certain materials and resources important to its business, including cement, bitumen, steel, supplementary cementitious materials and energy supplies, all of which it acquires at market rates. CRH is not dependent on any one source for the supply of these materials and resources, other than in certain jurisdictions with regard to the supply of gas and electricity.
CRH also utilizes various external suppliers and service providers throughout its business in addition to its internal supply chains, which enables us to economically source various raw materials, equipment and other inputs and to transport finished product to customers. The Company is committed to establishing a sustainable and resilient supply chain. The Company takes an active approach to monitoring the resilience of its supply chain and ensures that it has access to a satisfactory level of required inputs at all times.
Seasonality
Activity in the construction industry is dependent to a considerable extent on the seasonal impact of weather on the Company’s operating locations, with periods of higher activity in some markets during spring and summer which may reduce significantly in winter due to inclement weather. In addition to impacting demand for our products and services, adverse weather can negatively impact the production processes for a variety of reasons. For example, workers may not be able to work outdoors in sustained high temperatures and heavy rainfall and/or other unfavorable weather conditions. Therefore, financial results for any particular quarter do not necessarily indicate the results expected for the full year. First-half total revenues accounted for 46% of full-year 2023 which is in line with first-half total revenues in 2022.
Competitive Environment
CRH is a market leader in many of the construction markets it operates in across North America and Europe. CRH prioritizes investment in markets with attractive fundamentals including population and economic growth, which drive demand for construction. Many of the markets in which CRH operates are highly fragmented, and as a result, CRH products and services face strong competition. The Company’s profits are sensitive to changes in volumes and prices which are impacted from time to time by market conditions experienced in different markets.
Pricing for products is impacted by macroeconomic conditions, the number of competitors, the degree of utilization of production capacity, the specifics of product demand, innovation and differentiation, among other factors.
Fragmented markets continue to offer focused growth opportunities for CRH. Similarly, competitors may seek to expand their existing positions or enter new markets and the Company may experience competition for potential acquisitions identified by CRH management.
3 The SBTi’s Target Validation Team has determined that CRH’s target ambition for Scope 1 and Scope 2, as well as Scope 3 for purchased clinker and cement, is in line with a 1.5°C trajectory. Amounts stated in metric tonnes in accordance with the Global Cement and Concrete Association (GCCA) guidelines.
4 Note all sustainability metrics are presented in metric tonnes. Scope 1, 2 and 3 absolute CO 2 emissions were 44.1 million tonnes in 2023 (46.5 million tonnes in 2022).
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Intellectual Property and Research & Development
CRH relies on a combination of intellectual property laws, confidentiality procedures and contractual provisions to protect its proprietary assets and brands. CRH has registered or applied for registration of trademarks, service marks and internet domain names, both domestically and internationally, where appropriate.
CRH engages in ongoing research and development. In particular, CRH is engaging in research and development projects to improve existing and develop new technologies that will empower more sustainable forms of construction in the future. The Company’s research initiatives include:
• Venturing and Innovation Fund, a $250 million fund to support the development of new technologies and innovative solutions. To date, research initiatives across the Company include hydrogen use, CO 2 mineralization projects, novel cements, artificial intelligence (AI) technology and Carbon Capture Use and Storage;
• Through CRH Ventures, the Company’s venture capital arm, CRH is investing in, and partnering with, construction technology and climate technology companies across the construction value chain to pilot and scale new technologies and innovations that will enable safer, smarter and more sustainable construction; and
• The ICSC is CRH’s global center of excellence providing expertise and leadership to identify and analyze global market and construction trends and new growth opportunities to maximize the value of sustainable innovation. The ICSC incorporates a global network of laboratories and experts at CRH’s operating companies collaborating to advance research on sustainable building materials and processes, such as low-carbon cement and concrete.
Through these initiatives, CRH is supporting the development of new technologies and innovative solutions to meet the increasingly complex needs of customers and evolving trends in construction.
Human Capital Resources
People are our priority, and we believe that building a safe and inclusive work environment that empowers and inspires our global workforce is core to our success. In 2023, we employed approximately 78,500 people at 3,390 locations in 29 countries, of which approximately 46,400 were in the Americas Division and 32,100 in the Europe Division. Some of our businesses are seasonal in nature which results in peaks and troughs in employment numbers across certain sections of our workforce. These changes are managed through fair and flexible hiring practices.
Safety and Well-Being
The safety and well-being (including physical and mental health) of our employees, contractors and other stakeholders are top priorities. Our ambition is to have a culture of safety and wellness working towards zero harm, with a target of zero fatalities in any year. The Safety, Environment & Social Responsibility Committee, a Board sub-committee, receives regular reports in relation to safety indicators.
CRH invests substantial time, effort and financial resources to comply with applicable regulations and ensure a safe workplace. In 2023, 95% of our locations had zero accidents and we achieved a lost time incident rate of 0.21 based on the number of incidents per 200,000 work hours for employees and contractors globally. We continue to monitor near misses, prioritizing those high potential learning events to achieve our goal of zero harm. We also invest in initiatives and programs across CRH, including training, technologies and our equipment to increase the standard of safety across our operations and reduce risks. CRH further supports our employees through our health and well-being programs providing tools, social support and strategies for physical and mental health.
Our mining operations, manufacturing facilities and other operations are subject to a variety of worker health and safety requirements, including laws and regulations administered by the United States’ Occupational Safety and Health Administration (OSHA) and Mine Safety and Health Administration (MSHA) and their state-level and foreign equivalents. Failure to comply with these applicable workplace health and safety requirements can result in sanctions and claims for personal injury and property damage and/or the closure of sites.
Employee Engagement
Employee engagement is critical in generating insights regarding CRH’s performance culture, training and career development opportunities, safety culture, corporate purpose, initiatives to support inclusion and diversity (I&D) and overall strategy. The Board has delegated responsibility for the management of employee engagement to the Nomination & Corporate Governance Committee. Through employee engagement, we gain a better understanding of what matters most to our employees. We continue to adapt engagement strategies, ways of working and leadership development approaches based on employee feedback.
Working with the Global Leadership Team, CRH develops action plans based on the results of these engagements. The proximity of our senior leaders to daily operations across CRH is a key reason for the Company's continued success and enables dynamic engagement across our operations.
We operate both unionized and non-unionized workplaces.
Learning and Development
We are focused on creating a global workforce that will drive performance now and for years to come. Learning and development is integral to embedding our culture and values, ensuring compliance with policies and attracting, retaining and developing top talent. We invest in talent development throughout our businesses, empowering our employees across all levels of education and employment to grow their careers through personal and professional development opportunities to ensure we have a pipeline of talent in place for the next generation of leaders at CRH. We continue to roll out our Frontline Leadership Program, advancing the skills of our employees in areas such as management and safety. We have also established multiple training and compliance programs to support appropriate conduct, including mandatory annual trainings regarding anti-bribery, anti-fraud and anti-theft topics.
Inclusion and Diversity
At CRH we want to create and sustain a culture where fairness, inclusion and belonging are achievable for everyone. The Board and management team are committed to building an inclusive and diverse organization, in which talented people of all backgrounds can work in an environment which enables them to perform at their best. CRH has developed an I&D strategy which is built on, among other things, a firm commitment to nurture inclusion as a core capability.
CRH strives to ensure that its employee population reflects the communities in which it operates. We promoted our I&D goals through a range of initiatives and developments in 2023, including continuing to establish Employee Resource Groups (ERGs) across our operating companies sponsored by senior leadership. Our ERGs are voluntary, employee-led groups whose aim is to foster an inclusive workplace by enhancing the experience for all employees.
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Available Information
The Company maintains an internet address at www.crh.com and makes available free of charge through its website its annual reports on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K, and amendments thereto, if any, filed or furnished pursuant to Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), which are available as soon as reasonably practicable after CRH files or furnishes such information to the SEC. Investors may also access such documents via the SEC’s website www.sec.gov.
References in this document to other documents on the CRH website are included only as an aid to their location and are not incorporated by reference into this Annual Report on Form 10-K. CRH’s website provides the full text of earnings updates, copies of presentations to analysts and investors and circulars to shareholders.
Further, copies of CRH’s key corporate governance policies and other reports, including its Code of Business Conduct, Sustainability Performance Report and the charters for Committees of the Board, may be found on the CRH website.
The Company undertakes no obligation to update any statements contained in this Annual Report on Form 10-K or the documents incorporated by reference herein for revisions or changes after the filing date of this Annual Report on Form 10‐K, other than as required by law.
We post on our website news releases, announcements and other statements about our business performance, results of operations and sustainability matters, some of which may contain information that may be deemed material to investors. Additionally, we use our LinkedIn account (www.linkedin.com/company/crh), as well as our other social media channels from time to time, to post announcements that may contain information that may be deemed material to investors. Our officers may use similar social media channels to disclose public information. We encourage investors, the media and others interested in CRH to review the business and financial information we or our officers post on our website and the social media channels identified above. Information on CRH’s website or such social media channels does not form part of, and is not incorporated into, this Annual Report on Form 10-K.
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