Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Obtained ISO 50001 Energy Management System Certificate
• Implemented environmentally friendly production with modern environmental protection technologies

Social Achievements

• Granted non-refundable scholarships to 88 undergraduates
• Supported various organizations with donations and grants totaling 304,738.14 TL
• Supported health sector by providing medical devices to a health institution
• Supported sports with its Table Tennis Team
• Supported arts with its Turkish Music Choir, Folk and Modern Dance Groups

Governance Achievements

• Full compliance with Capital Market Board Corporate Governance Principles (with some exceptions)
• Established an Audit Committee, a Corporate Governance Committee, and an Early Risk Detection Committee
• Implemented an internal audit system

Climate Goals & Targets

Environmental Challenges

• Global economic uncertainties (e.g., increased interest rates, Brexit, deceleration in Chinese economy)
• Domestic challenges (e.g., airplane crisis with Russia, coup attempt, reduced international ratings)
• Intense competition in the global sector and new technological trends

Mitigation Strategies

• Focused on high value-added products
• Continued investment activities in modern technologies
• Implemented efficient and productive asset, liability, cash, and risk management policies
• Growth by venturing out into new markets strategy

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Turkish Accounting Standards (TAS), Turkish Financial Reporting Standards (TFRS), International Financial Reporting Standards (IFRS)

Certifications: TS EN ISO 9001, ISO/TS 16949, ISO 14001, OHSAS 18001, ISO 50001

Third-party Assurance: Güreli Yeminli Mali Müşavirlik ve Bağımsız Denetim Hizmetleri A.Ş.

Awards & Recognition

• The Best Performance Award from the Kocaeli Chamber of Industry
• The Best Supply Chain Project of the Year Award from SAP
• The Company with the Most Export in the Sector Award from the Mines and Metals Union (IMMIB) and the Istanbul Iron and Non-Iron Exports Chamber (IDDMIB)

Environmental Metrics

ESG Focus Areas

• Social Responsibility
• Environment
• Occupational Health and Safety
• Education
• Community Investment

Environmental Achievements

• Ensures environmentally-friendly production processes at its plants which are equipped with modern environmental protection technologies.
• Develops forestation areas.

Social Achievements

• Continued contributions in the education field by granting non-refundable scholarships to 102 undergraduates, including children of employees and graduates of Sarkuysan High School.
• Granted scholarships from the fund created with the voluntary contributions of employees to 62 students.
• Donated required equipment of the Obesity Clinic and other units of the Kocaeli Provincial Directorate of Health, Mother’s and Children’s Health Centre.
• Donated internal hardware of “Adalet Anaokulu” (Justice Kindergarten) opened for the children of women prisoners.
• Financed drilling of a water well in Mbanta village, Gambia, Africa.
• Supports sports with its Table Tennis Team.
• Contributes to arts with its Turkish Music Choir, Folk and Modern Dance Groups.

Governance Achievements

• Electronic General Assembly provisions were implemented.
• Two independent board members were elected.
• Corporate Governance Compliance Report was issued.

Climate Goals & Targets

Environmental Challenges

• Poor global economic performance in 2016.
• Negative global economic parameters, attempted coup d’état in Turkey, and negative geopolitical developments resulted in economic shrinkage.
• High inflation rates.
• Need for foreign capital.

Mitigation Strategies

• Successful risk management and financial measures.
• Efficient and productive working capital and Cash Management, Assets Management, Debts Management and Risk Management applications.
• Measures taken by the government to overcome shrinkage, incentives given such as credits secured by the Credit Guarantee Fund, and advantages provided to some sectors.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: International Financial Reporting Standards (IFRS)

Certifications: TS EN ISO 9001, ISO/TS 16949, ISO 14001, OHSAS 18001, ISO 50001

Third-party Assurance: Güreli Yeminli Mali Müşavirlik ve Bağımsız Denetim Hizmetleri A.Ş.

Awards & Recognition

• 1st place in Copper Wires and Stranded Wire Ropes category by Istanbul Ferrous and Non-Ferrous Metals Exporters’ Association (İDDMİB)

Environmental Metrics

ESG Focus Areas

• Environment
• Health
• Safety
• Social Responsibility
• Education
• Community Investment

Environmental Achievements

• Maintained environmentally-friendly production processes at its plants equipped with modern environmental protection technologies.
• Developed forestation areas.

Social Achievements

• Continued its traditional scholarship program, granting 119 non-refundable scholarships.
• Donated materials needed for the education of children with autism to Gebze Association of Autism.
• Supported schools to get ready for education in terms of hygiene during the Covid-19 pandemic.
• Gifted tablets to 100 underprivileged students.

Governance Achievements

• Full compliance with Corporate Management Principles included in the annex of Communique on Corporate Management no.II-17.1 of the Capital Markets Board.
• Established an Early Risk Detection Committee.

Climate Goals & Targets

Environmental Challenges

• Covid-19 pandemic causing substantial fluctuations in currency exchange rates and impacting capacity utilization.
• Significant slowdown in economic activities since March 2020 due to the pandemic.

Mitigation Strategies

• Focused on the health and safety of employees, making required investments and providing training.
• Continued operations with no interruption, supplying fire-resistant cables to Sancaktepe Field Hospital.
• Successfully managed crisis and risk, achieving significant year-on-year profit growth despite the pandemic.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI, SASB, TCFD, UNGC

Certifications: TS EN ISO 9001, ISO/TS 16949, ISO 14001, OHSAS 18001, ISO 50001, Covid-19 TSE Safe Production Certificate

Third-party Assurance: GÜRELİ YEMİNLİ MALİ MÜŞAVİRLİK VE BAĞIMSIZ DENETİM HİZMETLERİ A.Ş.

Awards & Recognition

• Metallic Star in Export

Environmental Metrics

ESG Focus Areas

• Social Responsibility
• Environmental Protection
• Occupational Health and Safety
• Education
• Healthcare
• Arts
• Sports

Environmental Achievements

• Decreased the use of natural resources and minimized impacts on soil, water, and air.
• Improved energy efficiency through projects and systems.

Social Achievements

• Awarded first prize in "Copper Wire and Weaved Ropes" and "Copper Goods Groups" categories in the "Metallic Stars of Exportation" and "Leaders of Sectoral Exportation" awards.
• Signed a 2-year collective labor contract without disturbing labor peace.
• Continued social value creation in education, healthcare, arts, and sports.
• Sponsored a mill in Gambia, Africa.
• Granted non-refundable scholarships to higher education students.
• Provided financial support to a study on mucilage.
• Purchased medical equipment for hospitals.

Governance Achievements

• Full compliance with Corporate Governance Principles (with some exceptions due to practical difficulties and ongoing debates).
• Established an Early Risk Detection Committee.
• Implemented an internal audit system.
• Maintained a transparent and accurate disclosure policy.

Climate Goals & Targets

Environmental Challenges

• Global supply chain disruptions.
• Rising raw material and energy prices.
• Exchange rate instability.
• High inflation.
• Global economic slowdown.
• Impacts of the Russia-Ukraine war.

Mitigation Strategies

• Developed necessary policies to adapt to global economic developments.
• Increased capacity utilization in US and Bulgaria facilities.
• Implemented currency-protected TL incentives.
• Implemented hedging operations for raw materials.
• Effective cash flow management and control.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: CMB Corporate Governance Principles, TFRS

Certifications: TS EN ISO 9001, ISO/TS 16949, ISO 14001, OHSAS 18001, ISO 50001, Covid-19 TSE Safe Production Certificate

Third-party Assurance: Güreli Yeminli Mali Müşavirlik ve Bağımsız Denetim Hizmetleri A.Ş.

Awards & Recognition

• First prize in "Copper Wire and Weaved Ropes" and "Copper Goods Groups" categories in the "Metallic Stars of Exportation" and "Leaders of Sectoral Exportation" awards.

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Achieved 946 tons of CO2 saving in 2022
• Reduced water consumption by 2,516 m³ in 2022 compared to 2021
• Reduced hazardous waste percentage to 16.6% in 2022

Social Achievements

• Provided 17,476 hours of training to employees in 2022 (average 20.4 hours per employee)
• Maintained an employee turnover rate of 5.3% (excluding retirees)
• Achieved a 90% customer satisfaction score

Governance Achievements

• Compliance with Capital Markets Board Corporate Governance Principles
• Implementation of ISO 14001, ISO 45001, ISO 50001, TS EN ISO 9001 and IATF 16949 certifications
• Established a Sustainability Group to evaluate ESG risks and opportunities

Climate Goals & Targets

Environmental Challenges

• Fluctuations in metal prices and exchange rates
• Reliable and timely supply of raw materials
• Industry competition
• Energy price volatility
• Geopolitical developments
• Cybersecurity risks

Mitigation Strategies

• Risk management plans and hedging transactions
• Working with a minimum number of reliable suppliers
• Industrial diversification
• Investments in own electricity generation
• Strengthening corporate structure and focusing on value-added products
• ISO 27001 and ISO 20000 certified information security environment, 24/7 monitoring and regular backups

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Long-term business agreements with large suppliers
• Preference for suppliers complying with UN Global Compact principles
• Supplier risk assessment including legal and environmental risks
• Review of supplier certifications
• New evaluation survey to be integrated into SAP system

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• EU Green Deal and potential carbon tax

Opportunities

• Development of energy-efficient products and processes

Reporting Standards

Frameworks Used: GRI Standards (Core option), UN Global Compact

Certifications: ISO 14001, ISO 45001, ISO 50001, TS EN ISO 9001, IATF 16949, ISO 27001, ISO 20000

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• 5. Gender Equality
• 8. Decent Work and Economic Growth
• 9. Industry, Innovation, and Infrastructure
• 11. Sustainable Cities and Communities
• 12. Responsible Consumption and Production
• 13. Climate Action

Sarkuysan contributes to these SDGs through its various initiatives and operations.

Sustainable Products & Innovation

• New generation copper alloys with less environmental impacts and longer lifespans

Awards & Recognition

• Şahabettin Bilgisu Environmental Award (2015)
• Award in the category of Industrial Companies with the highest export figures at the COMPANIES ADDING VALUE TO KOCAELI awards (2022)
• Plaque of appreciation by the Turkish Exporters Assembly (2018-2022)
• Honorary award for the “ELECTRICAL-ELECTRONICS SECTOR IN TURKIYE 2022” by the Electrical and Electronics Exporters Association

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Ensures environmentally friendly production processes at its plants which are equipped with modern environmental protection technologies
• Minimizes the impacts on soil, water, and air, increase and sustains the environmental performance.

Social Achievements

• Continued contributions in the education field by granting non-refundable scholarships to 127 undergraduates
• Donated several computers and monitors required for the patient tracking system of Gebze Fatih State Hospital, besides ozone sets and PRP kits demanded by Darıca Farabi Training and Research Hospital
• Sponsored the rehabilitation of a water well in Senegal

Governance Achievements

• Adopted complete compliance to Corporate Management Principles
• Established an Early Risk Detection Committee

Climate Goals & Targets

Environmental Challenges

• Economic stagnation developed in parallel to the high interest rates in the European Continent, which is our largest exportation market, causing demands to fall and high interest rates of loans as well as challenges encountered in accessing loans together with the pressures created on our costs by the exchange rate policies developed not in compliance with inflation rate and by labor costs.
• Strict monetary policies implemented to cool off the economy in order to curb the high inflation which was experienced across the world after the pandemic
• Adverse impacts of the devastating earthquake

Mitigation Strategies

• Effective and efficient assets management, liability management, working capital and cash management and risk management practices.
• Rational implementations which were given a start in the second half of the year following the fruitless labors of the initial economy policies used to bring down the inflation

Supply Chain Management

Climate-Related Risks & Opportunities

Awards & Recognition

• grand prize by the "Iron and Non-Ferrous Metals Exporters' Association"