| Argos trend | Emerging risks | Description | Mitigating actions |
| Climate change | ER1. Restrictions on access to capital, credits and the like, as it is a production process that is intensive in CO2 emissions. | The company may be increasingly exposed to different risks related to investment capital and indebtedness, as ESG metric disclosure standards are widely adopted, financial products aligned with long-term commitments to reduce CO2 emissions are being developed, and more and more investors require greater transparency from company managers regarding climate change commitments. There would be a potential increase in the cost of borrowing or the inability to access credits granted by the banking system, plus a greater preference of investors and asset managers for sectors with lower carbon footprints or trends towards carbon neutrality. This may begin to materialize strongly in the Americas, which can follow emerging trends in other regions. | * Alignment with international commitments and standards on climate change risk management and disclosure of information, goals and related metrics. ‘* Environmental strategy that includes the pillars of climate change, water and biodiversity, emissions and circular economy, with their respective indicators, goals and action plans. * Technological renovation projects aimed at mitigating the impacts of operations. * Energy and raw materials policy. * Use of alternative materials and fuels |
| Environment and resource protection | ER2. Depletion of water resources for the continuity of the operation due to climate change and ecosystem degradation. | As a consequence of climate change, exposure to changes in water availability (droughts or floods) and quality (contamination) increases, which affects direct operations by restricting water access for both the community and the company. | * Environmental strategy with emphasis on water risk management, which includes prospective analysis through tools such as Aqueduct and the Water Risk Filter, as a basis for future investments. * Technological renovation to reduce water consumption. * Operational efficiency projects. * Quantification of water flows to the operations. *Water measurement and efficient use plans in all facilities. |
| Employment and skills | ER3. Talent scarcity to perform key processes due to generational trends and new challenges in talent development. | In the future, professions and industry profiles may cease to be attractive due to lack of incentives such as: training options and career development attractive to new generations, greater geographical and functional mobility in the performance of roles, remote work options, greater flexibility and agility in processes and protocols (decision-making, implementation of ideas), in the ways of working (schedules, conditions) and in remuneration schemes. | * Develop innovation through specific challenges based on company needs. * Programs in alliance with educational institutions to sponsor internships or projects for the company, to onboard new talent. * Talent management policy. * Diversity and inclusion policy. * Employer brand program. * Measurement and continuous monitoring of work environment indicators. |
| The fourth industrial revolution | ER4. Inability to adapt to changes in the value chain of construction and our customers’ needs. | Inability to achieve business sustainability by not delivering integrated and competitive solutions to the construction market in the face of changes or disruptions in its model (for example: standardized, modularized and prefabricated construction components, products that contribute to climate change mitigation and adaptation and better environmental performance). | * Business intelligence articulated between regions to better take advantage of synergies * R&D initiatives: «Smart Construction» (advanced concrete, «Affordable Housing» «Product Performance») and «Road to Zero» («Green Products», «Green Buildings») * New businesses oriented to integral housing solutions. * Portfolio covering sustainable, digital, industrialized and packaging solutions (i.e., Green Solutions Portfolio) |
