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Chairman

The productive activity in Nesher is combined with the knowledge that the existing natural resources of humanity are limited, and as a business company, we must do all we can to take into account this limitation. These circumstances, especially in the Israeli context, led Nesher to spearhead Israeli industry in terms of resource conservation in traditional and heavy industries. Indeed, Nesher's leadership in corporate responsibility and environmental excellence in its plants has already been recognized as a name in the Israeli economy. If last year the company won the Environmental Protection Minister's award for its waste-absorbing activity as a resource for energy production at the Nesher-Ramla plant, this year the company gained platinum status from the Maala organization, which deals with the rating of Israeli companies in the field of corporate governance, environment and social responsibility.

It is important to emphasize: Our activity does not begin or end with reports and talk. The culture of activity in Nesher is based on performance research, early planning, investment in innovation and excellence in execution. Nesher invests considerable resources and aspires to always act beyond the requirements of the law, especially in those areas where the company has a significant environmental footprint. In 2015, the company invested NIS 47 million in environmental protection issues: NIS 34 million in preventing environmental hazards as a current expense in the field, and NIS 13 million in various investments, including research and development Environmental issues and to respond to the challenge of national waste. This investment is in addition to large investments from previous years, the results of which are significant in the field and which can be learned from the previous corporate responsibility reports published by Nesher.

While we understand that the future holds other significant challenges for Nesher. We do our utmost to adapt ourselves and identify these challenges ahead of time in order to develop early and effective solutions that will expand the company's mission and contribution, thereby ensuring its future. We will continue to work with uncompromising insistence on maintaining optimal environmental standards and continuous efficiency.

At any time, we are pleased to hear from you, stakeholders in Nesher - citizens, organizations, customers and suppliers, and to learn from you how to provide this information in a more useful and practical way.

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CEO

Various environmental challenges are now surfacing, whether through international processes, such as the debate on climate change, or through public debate, such as the hot issue in Israel - the pollution in the Haifa Bay. These challenges require a responsible and creative response from the industry, which strives not only to reduce the negative effects of industrial production and human activity, but also to promote the development of solutions that have a positive effect on general environmental issues that challenge the entire Israeli economy.

Nesher, the largest cement supplier to the Israeli construction industry, has been operating on both fronts simultaneously. On the one hand, all activities in Nesher are monitored and long-term plans are working tirelessly to reduce emissions such as dust and greenhouse gases in order to meet stringent European standards. On the other hand, in the last two years Nesher has also been a key factor in providing a positive response to the State of Israel's waste challenge and is working with local authorities, government ministries and other businesses to solve the problem for the benefit of the general public and the future of the economy.

Quite a few are now talking about a "cyclical economy" that seeks to "close circles" of waste and pollution by exploiting the waste stream of one human activity in favor of another positive human activity while conserving resources and preventing pollution. In 2015, Nesher achieved a unique achievement in this context - 8% of the energy used for the company's furnaces at Nesher Ramla was supplied by burning waste from factories and cities throughout the Dan Region - waste that was recently buried in waste sites in the Negev, at a significant price to the environment and to the residents of the State of Israel. The scope of activity and the extent of the reduction in environmental impact are unprecedented in the Israeli economy, and an example of the ability of Israeli industry to be part of the solution and not only "part of the problem."

In this context, we are honored to present to you, the Nesher stakeholders, the Corporate Responsibility Report for 2015. This report presents examples of Nesher's extensive activity and the initiatives we plan to continue developing in the future.

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