Climate Change Data

Environmental Metrics

ESG Focus Areas

• Human Rights
• Labor
• Environment
• Anti-Corruption
• Corporate Governance
• Sustainable Operations
• Employees
• Contribution to Society

Environmental Achievements

• Reduced internal energy needs at the power plant by 10% by replacing rotary equipment motor drivers.
• Saved 108.307 GJ of thermal energy and 10.000 GJ of electric energy through 17 energy efficiency projects.
• Reduced dam water usage by 43% and fire-protection water consumption by 50%.
• Saved 71,355 tons of water through projects in Textile Areas Dyeing Units.

Social Achievements

• Provided 54,555 man*hours of training for employees.
• Implemented 216 suggestions from employees.
• Spent 1,094,563 TL on donations and social assistance.
• 100% of female and male employees returned to work after parental leave.

Governance Achievements

• Successfully passed the TS ISO 31000 Risk Management Verification audit.
• Achieved a Corporate Governance Management Rating of 9.22 out of 10.
• Adopted Akkök Group of Companies Business Ethics Principles.

Climate Goals & Targets

Environmental Challenges

• Water shortage in Yalova due to drought.
• Risk of boiler pipe damage due to ferrous oxide deposits.

Mitigation Strategies

• Implemented measures to reduce water consumption and optimize processes.
• Improvement studies to prevent unplanned boiler outages.
• Developed a project to obtain fresh water from seawater (groundbreaking ceremony held).

Supply Chain Management

Supplier Audits: 6 companies audited in 2014

Responsible Procurement

• Environmental, social, and economic criteria in supplier selection.
• Active communication with suppliers.
• Prioritization of local suppliers (86% in 2014).

Climate-Related Risks & Opportunities

Physical Risks

• Drought

Reporting Standards

Frameworks Used: GRI G4 Core

Certifications: TS ISO EN 9001, TS EN ISO 14001, OHSAS 18001, TS ISO EN 14064-1, TS ISO 31000, TS ISO 27001

Sustainable Products & Innovation

• Pigment colored acrylic filament yarn
• Carbon fiber (DowAksa)

Environmental Metrics

ESG Focus Areas

• Sustainable Operations
• Employees
• Environment
• Societal Contribution

Environmental Achievements

• Reduced greenhouse gas emissions from 1,240,248 to 1,185,539 ton CO2e
• Reduced wastewater discharge from 2,830,040 to 2,392,690 m3
• Achieved 10,562 tons of CO2 reduction through energy efficiency projects
• Received ISO 14046 Water Footprint Standard Certificate
• Received LEED-GOLD Green Building Certificate for new headquarters

Social Achievements

• Increased employment by 5%
• Distributed a dividend of TL 185 million
• Ranked first in the Borsa Istanbul Corporate Governance Index
• Launched a mentoring program for staff at manager level and above
• Implemented Oracle Cloud HCM module for more effective HR management
• Conducted 2,350 hours of environmental education for employees

Governance Achievements

• Raised Corporate Governance Rating Note from 95.98 to 96.32
• Received Platinum Award from Istanbul Textile and Raw Materials Exporters’ Association
• Received high-level investable rating from JCR Eurasia Rating (AA (Trk) / Stable)

Climate Goals & Targets

Environmental Challenges

• Uncertainty in the domestic market due to political and economic developments
• Expected supply shortfall of raw materials
• Decreased demand for acrylic carpet yarn in the domestic market
• Price fluctuations and shrinking demand in Far East markets
• Reduced acrylic fiber demand in US and European markets

Mitigation Strategies

• Met financing needs with Credit Guarantee Fund application
• Focused on active marketing activities in the domestic market
• Turned to export markets (Europe and US) for carpet yarn
• Addressed demand from Iranian market
• Improved service capability, product quality, and sales policies

Supply Chain Management

Supplier Audits: Regular audits and monitoring through Subcontractor Responsible

Responsible Procurement

• Supplier selection and evaluation based on social and environmental criteria
• Prioritizing suppliers in the Yalova region

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI G4 Guidelines (core option)

Certifications: ISO 14046, ISO 14064-1, ISO 50001, ISO 27001, ISO 9001, ISO 14001, OHSAS 18001

Sustainable Products & Innovation

• Modacrylic fiber
• Acrylusion filament yarn

Awards & Recognition

• Platinum Award (İTHİB)
• Three awards for 2016 Sustainability Report (LACP Spotlight, Mercomm Galaxy)
• LEED-GOLD Green Building Certificate

Environmental Metrics

ESG Focus Areas

• Climate Change and Energy Management
• Water Management
• Waste Management
• R&D and Innovation
• Occupational Health and Safety
• Employee Loyalty and Satisfaction
• Corporate Governance

Environmental Achievements

• 30% reduction in energy consumption and 23% reduction in greenhouse gas emissions per ton production in the last three years
• 3.8-fold increase in energy savings in the last three years
• 74% of non-hazardous waste is used for fuel in various industries
• 23% of water used recycled

Social Achievements

• 6% increase in OHS training per employee (16 hours) in the last three years
• 28 hours of training per employee
• Great Place to Work survey: 69% of employees think it's a great company to work for
• Increased the number of female employees to 29%

Governance Achievements

• Ranked first among 46 corporations in the BIST Corporate Governance Index for the third year in a row
• Improved Corporate Governance Rating from 9.63 to 9.7
• Obtained the “Equal Opportunities Model” certificate from KAGIDER

Climate Goals & Targets

Environmental Challenges

• Water scarcity
• Climate change
• Compliance, financial, operational and strategic risks

Mitigation Strategies

• Implemented Reverse Osmosis system for efficient water use and improved discharged water quality
• Calculated water footprint to achieve water efficiency
• Included economic costs arising from the carbon market in climate risks
• Launched projects such as “Combustion Optimization,” “Drying Process Optimization,” “Flash Steam Tank” and “Increasing Condensate Return Rate” to increase energy savings and reduce greenhouse gas emissions
• Established the Early Detection of Risk Committee to manage risks

Supply Chain Management

Supplier Audits: 2 suppliers audited (2018)

Responsible Procurement

• Environmental and OHS policies, ethics and employee rights are criteria in supplier selection and evaluation
• Annual supplier performance evaluations
• Social and environmental criteria in supplier selection

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards (Core option), AccountAbility AA1000SE Standard, SASB, UNGC

Certifications: ISO 14064, OHSAS 18001, OEKO-TEX® Standard 100, TS EN 9001:2015, ISO/IEC 27001, Recycled Claim Standard (RCS)

UN Sustainable Development Goals

• Goal 8.2
• Goal 12.2
• Goal 13.2
• Goal 13.B
• Goal 5.5
• Goal 5.5.2
• Goal 8.8
• Goal 8.8.1
• Goal 17.16
• Goal 17.17

Aligned with SDGs through various initiatives related to economic growth, resource management, climate action, gender equality, decent work, and partnerships

Sustainable Products & Innovation

• AT200 Homopolymer Acrylic Fiber
• Acrycycle recycled products
• Armora flame-retardant modacrylic fiber

Awards & Recognition

• First place in the chemical industry at the Platin Global 100 Awards
• First place among 46 corporations in the BIST Corporate Governance Index for the third year in a row

Environmental Metrics

ESG Focus Areas

• Climate change and Energy Management
• R&D and Innovation
• Developing eco-friendly and safe products
• Increased use of recyclable raw materials
• Greenhouse gas emissions and air quality
• Energy efficiency and Renewable Energy in Production
• Green chemistry
• Water and wastewater management
• Human and employee rights
• Product life-cycle management
• Employee engagement and satisfaction
• Business Integrity & Combating Corruption
• Occupational health and safety
• Financial performance
• Customer satisfaction
• Corporate collaborations
• Diversity and equal opportunity
• Value chain management
• Qualified workforce and talent management
• Social investments
• Corporate governance
• Compliance with national and international regulations
• Product brief
• Corporate risk management

Environmental Achievements

• Recycling of 37% nonhazardous waste
• 82 million MWh energy savings worth TL 8.6 million in the last three years
• Environmental investment over USD 820,000 with an increase of 16% compared to the previous year
• CDP Water grade rising to B

Social Achievements

• 19 hours training per employee
• 21 hours of work safety training per employee, with a 16% rise compared to the previous year
• Social investments mainly in the areas of education, culture, arts and sports: TL 78,700

Governance Achievements

• Corporate Governance Rating rose from 9.70 to 9.72

Climate Goals & Targets

Environmental Challenges

• Economic fluctuations experienced in July 2018 caused difficulties in production and consumption in the acrylic fiber sector.
• Deenergize of demand in other parts of the world, especially in China, caused the price of the main raw material, acrylonitrile (“ACN”) to drop unexpectedly.
• Technical problems in ACN facilities caused great difficulties in supply.
• Lack of demand for acrylic carpet in western markets.
• Limited demand in the domestic market and insufficient demand from the Iranian market.
• Limited demand for acrylic fiber in the Far East and especially in the Chinese market.
• Uncertain conditions in the Iranian market due to US embargoes.
• Low demand in global markets shrank the demand for acrylic fiber by 10% in 2019 compared to the previous year.

Mitigation Strategies

• Active marketing activities and competitive pricing strategies.
• Partnerships established in American, Far East and European markets for Armora.
• Capacity expansion for Armora.
• Cooperation between Acrylusion and Sunbrella and HRI Rugs brands.
• Investments in modernization and standardization: USD 30 million.

Supply Chain Management

Supplier Audits: Three of 79 critical suppliers had a social and environmental audit in 2019. No non-conformities detected.

Responsible Procurement

• Prioritizing local suppliers (88% of 1211 suppliers in 2019)
• Supplier training on OHS, environment, and first aid (3,294 hours for 183 suppliers)

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards “Basic” option, IIRC Integrated Reporting framework, UN Global Compact Principles, UN Sustainable Development Goals

Certifications: OEKO-TEX® Standard 100, TS EN ISO 14001, TS 18001, ISO 50001, ISO 9001, TS ISO / IEC 27001, Green Port / Eco Port, ISO 14046, ISO 14064, TS EN ISO IEC 17025, ISO 45001 (target for 2020), Equality of Opportunity Model (FEM) certificate

UN Sustainable Development Goals

• Goal 9.4
• Goal 12.2
• Goal 12.4
• Goal 12.5
• Goal 17.16
• Goal 8.2
• Goal 8.8
• Goal 8.8.1
• Goal 13.1
• Goal 5.5
• Goal 5.5.2
• Goal 14.1

The report details how various initiatives contribute to these goals.

Sustainable Products & Innovation

• Acrylusion
• Acrycycle
• Armora

Awards & Recognition

• Industry Champion award (USD 334 million exports)
• 50th Year plaque from Turkish Chemical Manufacturers Association
• Second place in Borsa Istanbul Corporate Governance Index

Environmental Metrics

ESG Focus Areas

• Climate Crisis and Energy Management
• Water and Wastewater Management
• Circular Economy
• Occupational Health and Safety
• Corporate Governance

Environmental Achievements

• Made an environmental investment of USD 820,000 to manage environmental impact and use resources efficiently.
• Entered Textile Exchange's Preferred Fiber Materials List with Acrycycle®.
• Measured product effects by performing a Life Cycle Analysis (LCA).
• Received the "TSI Covid-19 Safe Production Certificate".
• Used 38,884 MWh of waste heat energy (80.7% increase compared to the previous year).
• CDP Climate change rating raised to B.
• CDP Water Program rating raised to A- and won the CDP Turkey Water Leadership Award.

Social Achievements

• Raised the percentage of female members on the Board of Directors to 44%.
• Involved in the UNGC Target Gender Equality Programme.
• Provided financial support and mentorship to young entrepreneurs.
• Percentage of female managers reached 24%.

Governance Achievements

• Included in the BIST Corporate Governance Index (ranked second among 52 companies with a score of 9.72).
• Maintained Corporate Governance Rating of 9.72 out of 10.

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to the COVID-19 pandemic and US embargo against Iran.
• Falling demand in the world fiber market due to the pandemic.
• Economic contraction due to the pandemic.

Mitigation Strategies

• Reduced production capacity by half (April-June).
• Quickly responded to recovery in knitwear, hand knitting, and outdoor sectors.
• Focused on measures for employee health and obtained the "COVID-19 Safe Production Certificate".
• Adopted an integrated management approach.
• Prioritized local suppliers to ensure supply and production continuity.

Supply Chain Management

Supplier Audits: 34% of total suppliers evaluated; 36% of critical suppliers subjected to environmental and social audits.

Responsible Procurement

• Sustainable Responsible Supply Chain Policy published; business ethics clause added to all procurement contracts; prioritizes local suppliers (86% of 1,226 suppliers).

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

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

Certifications: OEKO-TEX® Standard 100, PETA vegan certified, TS EN 50001:2018, TS EN 45001:2018 (planned for 2021)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Goal 7 (Affordable and clean energy)
• Goal 8 (Decent work and economic growth)
• Goal 9 (Industry, innovation, and infrastructure)
• Goal 12 (Responsible consumption and production)
• Goal 13 (Climate action)
• Goal 17 (Partnerships for the goals)

Not disclosed

Sustainable Products & Innovation

• Acrycycle (recycled acrylic fiber); Everfresh (antimicrobial fiber); Acrylusion (long-lived, low energy consumption fiber); Armora (flame-retardant modacrylic fiber).

Awards & Recognition

• Chemistry and Plastics Industry Digitalization Award at the Platinum Global 100 Awards; CDP Turkey Water Leadership Award

Environmental Metrics

ESG Focus Areas

• Energy efficiency
• Water management
• Circular economy
• Health and safety
• Climate change
• Reduction in natural resources
• Human rights
• Employee rights
• Corporate governance

Environmental Achievements

• Invested USD 2.6 million in environmental projects to manage environmental impact and improve resource efficiency.
• Achieved CDP Climate Change score of B- and CDP Water Program score of A-, maintaining its place among Turkey's Water Leaders.
• Used recyclable materials in all packaging.
• Recovered 1,135,807 tons of water.
• Reduced energy consumption by reusing 28,835 MWh/year of waste heat.
• Achieved energy savings of approximately 33,600 MWh/year through energy-saving projects.
• Recycled 36.5% of non-hazardous waste and ensured 38% of hazardous waste was burned and recovered as energy.
• Acrycycle, recycled acrylic fiber, provided 86% less water consumption and 30% less carbon emissions.
• Ecodye brand product consumed up to 93% less water and emitted up to 69% less carbon than traditional methods.
• Solvent recovery rate of 99% at new facility.

Social Achievements

• Increased the number of female employees by 11%.
• Improved accident frequency rate by 51% compared to the previous year.
• Provided financial support and mentorship to young entrepreneurs through the Value for Entrepreneurship project.
• Achieved Great Place to Work® Certified Company title in the category of "Turkey's Best Employers" based on a Trust Index survey with 80% employee participation.
• Increased female representation on the Board of Directors to 44%.

Governance Achievements

• Achieved a Corporate Governance Rating of 9.75 out of 10.
• Second highest Corporate Governance Rating among 52 companies in the Borsa Istanbul Corporate Governance Index.

Climate Goals & Targets

Environmental Challenges

• Rising commodity prices and supply problems of acrylonitrile (ACN) in the first quarter of 2021.
• Significant hike in freight prices.
• Decline in domestic market demand due to inflation.
• Supply chain disruptions.
• Global crisis in the automotive industry affecting demand for flock fiber.

Mitigation Strategies

• Implemented Covid-19 Safe Production Certificate and health measures.
• Increased chemical storage tank capacity by approximately 65%.
• Developed alternative sourcing strategies.
• Expanded production capacity to meet demand.
• Focused investments on efficient production technologies and low-environmental impact product designs.

Supply Chain Management

Supplier Audits: 34% of active suppliers underwent Supplier Performance Evaluation; 48% participation rate in Sustainability Evaluation Survey.

Responsible Procurement

• Sustainability Evaluation Survey focusing on Labor, Health & Safety, Environment, Quality, and Information Security.
• Prioritizes local suppliers (86% of suppliers in 2021).

Climate-Related Risks & Opportunities

Physical Risks

• Bad weather conditions affecting raw material supply.

Transition Risks

• Changes in international legislation related to low-carbon production models.

Opportunities

• Energy efficiency investments.
• Development of energy-efficient products.

Reporting Standards

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

Certifications: ISO 9001-2015, ISO 14001-2015, ISO 45001-2018, ISO 50001, ISO 14064-1, ISO 14046, OEKO-TEX® Standard 100, Recycle Claim Standard (RCS), TSI Covid-19 Safe Production Certificate, LEED Gold Certification (Headquarters Building)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Goal 7 (Affordable and clean energy)
• Goal 8 (Decent work and economic growth)
• Goal 9 (Industry, innovation, and infrastructure)
• Goal 12 (Responsible consumption and production)
• Goal 13 (Climate action)

Initiatives contribute to these goals through energy efficiency, waste reduction, sustainable product development, and responsible resource management.

Sustainable Products & Innovation

• Acrycycle recycled acrylic fiber.
• Ecodye brand product.
• AksaFil brand yarn.
• Innofleece (PETA Vegan approved).

Awards & Recognition

• Great Place to Work® Certified Company.
• 2020 Travellers’ Choice award (KidZania Istanbul).

Environmental Metrics

ESG Focus Areas

• Climate Change
• Water Management
• Waste Management
• Circular Economy
• Employee Engagement
• Occupational Health and Safety
• Sustainable Supply Chain
• Social Investments
• Product Sustainability
• R&D and Innovation
• Digital Transformation
• Corporate Governance

Environmental Achievements

• Reduced freshwater use by 28.7% compared to 2022
• Recovered 66,384 MWh/year of waste heat energy and reused it in processes
• Recycled 14% of non-hazardous waste and recovered 32% of hazardous waste as energy by incineration
• Reduced non-hazardous waste by 22% compared to the previous year
• Launched Acrycycle, the world's first recycled acrylic fiber brand, reducing water consumption by 32% and carbon emissions by 20% compared to traditional fibers
• Launched EcoDye brand product, reducing water consumption by up to 72% and carbon emissions by up to 22% compared to traditional dyeing methods

Social Achievements

• Increased the number of female employees by 15% compared to the previous year
• Improved accident frequency rate by 5% at the end of 2023 compared to last year
• Implemented a four-day workweek, a first in Turkey
• Established the Aksa Experience Area (AEA) project to raise awareness of sustainability practices
• Contributed to earthquake relief efforts, including search and rescue and providing support to victims

Governance Achievements

• Maintained a Corporate Governance Rating of 9.75 out of 10
• Ranked second among 73 companies in the Borsa Istanbul Corporate Governance Index
• Established the R&D and Sustainability Group Directorate to strengthen sustainability culture and implement sustainability targets starting with product design

Climate Goals & Targets

Environmental Challenges

• Global economic slowdown, high inflation, rising interest rates, geopolitical tensions
• Earthquake disaster in Turkey
• Stagnation in the textile industry
• Increased input costs affecting competitiveness
• Low demand for technical fibers in US and European markets
• Supply chain disruptions

Mitigation Strategies

• Effective value chain management, achieving 90% capacity utilization
• Record shipment of 318 thousand tons
• Debt reduction
• Investments in capacity expansion and modernization
• Alternative sourcing strategies
• Focus on product-based solutions and innovative approaches
• Establishment of the R&D and Sustainability Group Directorate

Supply Chain Management

Supplier Audits: Sustainability Evaluation Surveys sent to 39 Critical/Strategic suppliers (74% response rate); 46% of active suppliers subjected to Supplier Performance Evaluation

Responsible Procurement

• Prioritization of local suppliers to support local economic development
• Requirement for subcontractor training on Occupational Health and Safety, Environment, and First Aid
• Use of 100% recyclable packaging materials, with high recycled content

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Water scarcity
• Natural disasters (earthquakes)

Transition Risks

• Climate Law implementation
• National Green Taxonomy implementation
• EU regulations (Green Deal, Fit for 55 Package, BCAM)
• Carbon pricing mechanisms

Opportunities

• Investments in renewable energy sources and low-carbon production technologies
• Development of energy-efficient products
• Biofuel power plant feasibility studies

Reporting Standards

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

Certifications: ISO 9001-2015, ISO 14001-2015, ISO 45001-2018, OEKO-TEX® Standard 100, Recycle Claim Standard (RCS), ISCC International Sustainability and Carbon Certification

Third-party Assurance: PwC Bağımsız Denetim ve Serbest Muhasebeci Mali Müşavirlik A.Ş.

UN Sustainable Development Goals

• Goal 4 (Quality Education)
• Goal 5 (Gender Equality)
• Goal 6 (Clean Water and Sanitation)
• Goal 8 (Decent Work and Economic Growth)
• Goal 9 (Industry, Innovation and Infrastructure)
• Goal 12 (Responsible Consumption and Production)
• Goal 13 (Climate Action)
• Goal 17 (Partnerships for the Goals)

Company's initiatives contribute to these goals through various programs and actions related to education, gender equality, water management, employee well-being, sustainable production, climate action, and community engagement.

Sustainable Products & Innovation

• Acrycycle (recycled acrylic fiber)
• EcoDye (waterless dyeing technology)
• Armora (flame-retardant modacrylic fiber)
• Acrylusion (long-lived, less energy-intensive acrylic yarn)
• Mithra (ultra-high molecular weight polyethylene)
• Reactive Dyeable Acrylic Fiber

Awards & Recognition

• Creating Value in Future Work Life award at the Peryön Human Value Awards
• Great Place to Work® Certified Company title