Lafarge communicates progress in implementing the Global Compact principles through its 2003 Sustainability Report and its Web site (http://www.lafarge.com/commitments/). Bernard Kasriel, Chief Executive Officer, reiterates Lafarge''s commitment to the Global Compact in the report''s opening letter. On page 2, the report contains an "Update on [Lafarge''s] Objective and our approach to the UN Global Compact," which provides indicators of the company''s progress in implementing the Global Compact principles and a reference to the corresponding section in the report for each indicator.

In the "Sustainability Management" section, the report addresses corporate governance issues and describes Management at the Group level and Application at Business Units Level (see page 3 to 6). Under Economic performance (pages 8 to 11), the report describes Lafarge''s Code of Business Conduct and its Anti-Corruption policy. Social Performance is evaluated on pages 12 to 14 of the report and focuses on Human Resources, Respect for Human Rights at Work and Local Community Relations. Environmental performance, addressed at pages 16 to 19 of the report, concerns the issues of saving non-renewable raw materials, quarry rehabilitation, saving fossil fuels, controlling water consumption and air emission and reduction of production waste landfilled. In particular, the report focuses on Cement Plant CO2 Emissions and Cement Plant Stack Emissions.

The report was prepared in accordance with the Global Reporting Initiative (GRI) 2002 Guidelines (see page 21 for more details). A GRI Index is provided in the report''s table of content.

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Page 20 of the report provides information on Lafarge''s sustainability ratings, describing the rating process and the company?s inclusion in the FTSE4GOOD, DJSI (SAM Rating) and other indexes.

The first page of the report provides information on ?Expectations from our stakeholders,? expressed during consultations with stakeholders in 2003 about the company?s 2002 report. Also featured is Lafarge?s Stakeholders Panel?s Views on the report (see the last page of the report). To introduce the stakeholder panel?s views, Bernard Kasriel states that: ?This report has been prepared in accordance with the 2002 GRI Guidelines. It represents a balanced and reasonable presentation of Lafarge?s economic, environmental, and social performance. To challenge our point of view, we asked our stakeholders panel to give their opinion on the report.?