Content. 15 Years of Conservation Initiatives. What is El Carmen? El Carmen in Figures. Awards and Achivements. Collaboration

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2 Content p 3 What is El Carmen? CEMEX biodiversity conservation legacy. p Years of Conservation Initiatives 2016 represents 15 years of continuous conservation. p 4 El Carmen in Figures It is part of a large trans-boundary biological corridor between Mexico and the U.S. p 16 Awards and Achivements 60 scientific and popular articles published due to research. p 8 Habitat and Species Restoration 20,000 hectares of native grasslands restored. p 18 Collaboration Conservation efforts and coordination with neighboring communities, conservation NGOs and government agencies. p 12 CO2 Capture and Ecosystem Services Around 11.2 million tons of CO2 are captured in the area.

3 This initiative reflects CEMEX s commitment to give back to nature, while offsetting our operations environmental footprint. Create a trans-boundary legacy of high-impact biodiversity conservation 1. What Is El Carmen? CEMEX biodiversity conservation legacy. A private nature reserve located along the border of Mexico and the United States El Carmen is a private nature reserve managed by CEMEX. Located along the border between the states of Coahuila, Mexico, and Texas, USA, Mexico s federal government decreed 77% of its area of 140,300 hectares (ha) as Natural Protected Areas. Its ecosystems include rivers, desert scrub plains, grasslands, and mountainous forests. It is also part of an extensive biological corridor, vital for wildlife migration and distribution. Among the world s five major wilderness area Among the world s five major wilderness areas, El Carmen is home to 45% of mammals, 90% of birds, 35% of amphibians and reptiles, and 40% of plants across the Chihuahuan Desert Ecosystem. El Carmen contributes to the conservation of 26% of the bird and 16% of the mammal species registered in Mexico. A habitat for endemic species, it provides protection for the largest black bear population in the country. A habitat for endemic species Protection for the largest black bear population in Mexico Create a trans-boundary legacy of high-impact biodiversity conservation managed and certified under international standards exemplifying how to compensate the business and production activity through actions that enhance natural capital and environmental services. Contribute to the global fight against climate change by enhancing and maintaining an important sink for carbon dioxide (CO2) emissions. Through our El Carmen Conservation Program, we are able to restore habitats and wildlife in a region that is 8.4 times larger in size than the total sum of the areas impacted by our operations worldwide Conserve biodiversity 100% Enhance and maintain an important sink for CO2 emissions Restore habitat and native species Compensate for the environmental footprint of CEMEX s worldwide operations To supervise and conserve El Carmen s ecosystems, the area s biologically diverse flora and fauna has been repeatedly inventoried since More than 1,500 plant, 289 bird, 80 reptile and amphibian, and 78 mammal species have been identified. El Carmen has full-time staff, including wildlife management and conservation experts, for its operation and administration. Provide environmental services Serve as an outdoor conservation lab El Carmen 15 years 3

4 2. El Carmen in Figures It is part of a large trans-boundary biological corridor between Mexico and the U.S. Area: 140,300 ha. Equivalent to the size of Mexico City, including its 16 delegations, the size of Houston, Texas, or close to half the size of Big Bend National Park, Texas The area of El Carmen is 8 times greater than the area impacted by CEMEXʼs worldwide extractive activities. Area of El Carmen in USA: 7,300 ha Area of El Carmen in Mexico: 133,000 ha Number of hectares within protected areas: 108,000 (77 %) Natural Protected Areas in which El Carmen is located: Maderas del Carmen, Ocampo, and Rio Bravo del Norte. Five ecosystems: desert scrublands, grasslands, oak forest, pine forest, and gallery forest Species biodiversity: 1,500 plant, 40 fish, 8 amphibian, 73 reptile, 289 bird, and 80 mammal Home to 30% of the flora registered in Coahuila, Mexico, and about 45% of the flora of the Chihuahuan Desert Black bear: El Carmen is home to the largest population of this species in Mexico. 1 Oso / Km CO2 sink: El Carmenʼs carbon sink captures 11,230,000 tons of CO2, equal to the annual emissions produced by more than 2.3 million vehicles. El Carmen is energy self-sufficient, generating 33,000 kilowatt hours (kwh) year by four wind generators and 100 solar panels. Operating El Carmen requires 18 vehicles, three pieces of heavy machinery equipment, two tractors, five quad bikes, and a Cessna plane. Area under Mexicoʼs Volunteer Conservation Register since 2009: 22,400 ha El Carmen has full-time staff, including experts in wildlife management and conservation programs. El Carmen 15 years 4

5 Location and infrastructure of El Carmen: El Carmen 15 years 5

6 Infraestructure of El Carmen. Pilares Operation Center. La Cueva Center. Operation Center, El Carmen USA. Camp #1 Dam. Pilares Bighorn Sheep Reserve. El Carmen 15 years 6

7 Widlife Conservation activities. Wildlife monitoring with radiotelemetry. Wildlife Monitoring with camera traps. Wildlife release. Widlife observation. El Carmen 15 years 7

8 3. Habitat and Species Restoration Grassland Habitat Restoration. 20,000 hectares of native grasslands restored Habitat Restoration Process. Selection of the area. Vegetation analysis. When CEMEX began managing El Carmen, overexploitation and degradation of the site s natural resources required application of management techniques to restore native species and habitat. Open space for wildlife movement Since 2001, all domestic livestock were removed to allow habitat recovery from overgrazing. Mechanical aerator roller treatments, prescribed burning, and grass seed planting restored 20,000 hectares of native grasslands. Moreover, approximately 350 kilometers (km) of internal barbwire fences were removed, providing an open space for wildlife movement. Removal of domestic livestock. Removal of livestock fences. Before the restoration process. Permitting process. Implementation of restoration techniques (e.g., aerator roller, prescribed burning). Native grass planting. Vegetation analysis. After the restoration process. El Carmen 15 years 8

9 Species Restoration Elk, desert bighorn sheep, and pronghorn are back after more than a six-decade absence To restore El Carmen s native species, several actions were undertaken to revive the habitat and wild populations of black bear, mule deer, whitetailed deer, elk, desert bighorn sheep, and pronghorn. Thanks to CEMEX s conservation efforts, the last three species are back after a more than sixdecade absence from the area. Bighorn Sheep Restoration To return the desert bighorn sheep to El Carmen, a 5,000 ha brood facility was built. After receiving a founding group of 45 bighorns, the return of desert bighorn sheep to northeast Mexico became a reality. Currently, the El Carmen reserve has a population of 200 bighorns. Since 2009, 100 sheep have been captured and released in the Sierra del Carmen the only wild population that exists in the state of Coahuila. Mule Deer Restoration 200 bighorn population More than 800 mule deer released, restoring population in the region At the beginning of El Carmen s operation, the mule deer population was so low that it was considered unviable. Overgrazing, lack of water, and poaching placed this species on the brink of extinction in the region, so a restoration plan was established utilizing surplus deer. In collaboration with the Texas Parks and Wildlife Department and ranch owners in the U.S., 816 deer have been released in El Carmen and neighboring ranches in Mexico and the U.S. since 2006, restoring the mule deer population in the region Bighorn Population Mule Deer Pupulation El Carmen 15 years 9

10 Pronghorn Restoration More than 150 pronghorns are back in their historic habitat Another priority is the restoration of large mammals, such as pronghorn, to El Carmen. Pronghorn disappeared from the state of Coahuila due to livestock overgrazing and poaching in the late 1950s. In 2001, a restoration process was established to recover its habitat in El Carmen. The first step was the removal of all domestic livestock and 350 km of interior fences. During 2009 and 2010, in coordination with the Mexican and U.S. governmental agencies of SEMARNAT, the Environmental Agency of Coahuila State, and the New Mexico Department of Game and Fish, 100 pronghorn were captured in New Mexico and released in El Carmen s restored grassland. Today, more than 150 pronghorns are back in their historic habitat of northern Coahuila. Pronghorn Population Black Bear Protection The black is a conservation priority in Mexico due to the problems affecting their population in most of their historic migration regions. In El Carmen, the black bear population density is 1 bear/km² and requires permanent protection. This contributes to their recovery in both Mexico and the Big Bend area of the U.S. where their movements are widely documented. Additionally, universities and governmental agencies collaboratively monitor the species and provide environmental education to landowners in order to conserve a healthy bear population and habitat in Coahuila. El Carmen 15 years 10

11 Species Restoration Process Species selection. Information collection. Potential habitat analysis. Management plan. Selection of areas for species translocation. Processing government permits. Habitat enhancement. Preparation of capture sites. Species capture. Biological data collection and collar positioning for tracking. Transfer and placement of specimens in soft release pen. Release. Monitoring of specimens and development of research projects with students. Analysis of monitoring data. Population growth monitoring. El Carmen 15 years 11

12 4. CO2 Capture and Environmental Services Around 11.2 million tons of CO2 are captured in the area, equivalent to the emissions produced by more than 2.3 million vehicles in a year neighboring municipality of Musquiz, Coahuila, this research indicates that the value society gives to the biodiversity and landscape found at El Carmen is approximately US$60 million per year. Considering the annual CO2 sequestration and capture process, this value increases to US$70 million per year. The restoration activities developed over the past 15 years have increased natural capital throughout the area, contributing to the conservation of biodiversity in the region and mitigating the effects of climate change by capturing CO2 through the growth of vegetation cover in El Carmen. During 2015 and 2016, a study was conducted measuring the biomass of El Carmen s vegetation. By applying allometric equations, it was estimated that the area under conservation captures 11.2 million tons of COv, equivalent to the emissions produced by more than 2.3 million vehicles or the electricity consumed by more than 1.6 million homes annually, according to the U.S. Environmental Protection Agency. The economic valuation of ecosystem services is a useful conservation tool. It explicitly displays the importance and close relationship between the integrity of nature and human welfare, while providing environmental services with a monetary unit that enables comparison with other goods. Through the contingent valuation method, a Master of Science research thesis was conducted to estimate the value that society gives to environmental services provided by the biodiversity and landscape of El Carmen. By applying 100 surveys of the adult population in the El Carmen 15 years 12

13 5. 15 Years of Conservation Initiatives 2016 represents 15 years of continuous conservation efforts including programs focused on habitat and species restoration, scientific research, and infrastructure development to operate this unmatched nature reserve. The following actions have been developed over time: El Carmen project launch. Reintroduction of 45 bighorn sheep at Pilares Bighorn Sheep Reserve Start of white-tailed deer program. Start of research thesis program. Grassland and habitat restoration. Start of baseline biodiversity inventory Acquisition of land in Mexico. Removal of domestic livestock. Removal of 350 km of interior fences. Construction of Pilares Desert Bighorn Sheep facility. Construction of El Carmen Landing Strips. Construction of San Isidro House. Start of student workshops. Release of 19 elk Release of 19 elk. Release of 33 desert bighorn sheep. El Carmen 15 years 13

14 - Release of 22 elk. Construction of Camp #1 Release of 6 desert bighorn sheep. - Regional restoration of 85 mule deer. Expansion of El Carmen to the U.S. with purchase of Adams Ranch in Texas Regional restoration of 320 mule deer. Start of student internship program. - Release of 30 desert bighorn sheep. Release of 45 pronghorn Regional restoration of 350 mule deer. Construction of Camp Adams Ranch (USA). Construction of Camp Pilares. - Release of 55 pronghorn Release of 6 desert bighorn sheep Shipment of 16 desert bighorn sheep to New Mexico (USA) - Start of wildlife fires management program El Carmen 15 years 14

15 2012 Release of 18 desert bighorn sheep. Regional restoration of 22 mule deer. - Release of 100 gamble quail. - Regional restoration of 30 mule deer Construction of La Cueva Visitors Center. Release of 111 gamble quail. Regional restoration of 106 mule deer. Release of 100 collared peccary. Regional restoration of 21 mule deer. - Construction of Wildfire Fighters Camp #5. Regional restoration of 31 mule deer. Release of 450 collared peccary. Certification of El Carmen by Wildlife Habitat Council. El Carmen 15 years 15

16 6. Awards and Achievements Achievements: Restored species: desert bighorn sheep, pronghorn, elk, mule deer, and collared peccary. 16 master's thesis and doctoral students from prestigious Mexican and U.S. universities, such as ITESM, UANL, UNAM, UCLA, Yale, and Texas A&M. 60 scientific and popular articles published due to research in El Carmen. 950 students visited El Carmen. 350 km of interior fences removed More than 20,000 ha of grassland restored More than 2,050 native wildlife specimens reintroduced El Carmen 15 years 16

17 Texas State Government (USA) Recognition of binational conservation efforts, Texas, U.S.- Coahuila, Mexico. New Mexico Game and Fish Department. Recognition of the efforts and dedication of CEMEX Red Rock area management staff for the translocation of desert bighorn sheep to El Carmen (Reserve Pilares), Mexico. Secretaria de Medio Ambiente y Recursos Naturales (Mexico) Honorable Mention Environmental Merit Award 2016, Business Category. Wildlife Habitat Council. (5 recognitions) Gold-Tier Program of the Year for biodiversity protection projects. Species of Concern Project Award. Mammals Project Award. Desert Project Award. Forest Project Award The Desert Bighorn Council. Honorary plaque for the vision, dedication, and commitment to the restoration of desert bighorn sheep in northeastern Mexico and its contribution to the restoration of wildlife. Texas Bighorn Society, Recognition as a conservation partner. Wild Sheep Foundation. Special recognition for conservation. El Carmen 15 years 17

18 7. Collaboration Conservation efforts and coordination with neighboring communities, conservation NGOs and government agencies In collaboration with our neighbors, we signed agreements with private landowners, including Rancho Guadalupe and Museo Maderas del Carmen, with whom we work to conserve and restore wildlife habitat. We collaborate with conservation NGOs, including Cuenca Los Ojos, Texas Bighorn Society, Wild Sheep Foundation, and Mule Deer Foundation, on habitat and wildlife restoration projects on both sides of the border. We also collaborate with the Commission of Natural Protected Areas of Mexico (CONANP) to protect forests and monitor biodiversity. El Carmen s staff is a permanent member of the Technical Advisory Board of the Maderas del Carmen and Ocampo Natural Protected Areas, where we share our experiences and coordinate conservation efforts with neighboring communities. Finally, we closely coordinate with governmental agencies such as SEMARNAT and SEMA Coahuila in Mexico, and the National Park Service, U.S. Fish and Wildlife Service, Texas Parks and Wildlife Department in the U.S. El Carmen 15 years 18

19 For more information: /CEMEXNature /CEMEXNature /CEMEXNature CEMEX, S.A.B. de C.V. Corporate Sustainability. Av. Ricardo Margain Zozaya 325 Valle del Campestre San Pedro Garza Garcia, N.L. ZIP Mexico Photography by: Jonás A. Delgadillo, Santiago Gibert Isern / Dimensión Natural, Bonnie Mckinney, Alejandro Espinosa T. and El Carmen Staff 2016