Climate Change Data

Environmental Metrics

ESG Focus Areas

• Occupational Health and Safety
• Employee Rights and Employee Satisfaction
• Product and Service Quality
• Customer Satisfaction
• Employee Training and Development
• Economic Performance
• Innovation and R&D
• Ethics and Compliance
• Risk Management
• Diversity, Equal Opportunities and Non-Discrimination
• Biodiversity
• Management of Social, Economic and Environmental Impacts on Local Communities
• Carbon Footprint and Energy Efficiency
• Environmental and Social Compliance of Suppliers
• Social Investment

Environmental Achievements

• Prevented approximately 9,000 tonnes of greenhouse gas emissions.
• Started using rainwater in two additional locations (Sevastopolsky Shopping Centre in Moscow and ENKA Schools Kocaeli).
• Extended afforestation and biodiversity protection activities.
• Cimtas Ningbo awarded LEED Gold certificate for its new manufacturing plant.
• Cimtas Pipe completed 10 million working hours without a single work accident.

Social Achievements

• Extended ethics, human rights, and anti-corruption training to all locations.
• Established Ethics and Compliance audits.
• Local procurement activities contributed more than USD 250 million to local economies.
• Increased social investment through ENKA Foundation (above target).
• Maintained 90% overall employee loyalty rate.
• Activated online training management platform (LMS) at ENKA Academy, conducting nearly 900,000 person-hours of training.

Governance Achievements

• Maintained place in FTSE4Good Emerging Markets Index and BIST Sustainability Index.
• Completed work for adapting information security management system to ISO 27001 standard.

Climate Goals & Targets

Environmental Challenges

• Limited resources
• Climate change
• Supply chain disruptions (implied)
• Information security risks

Mitigation Strategies

• Developed and implemented strategies to reduce environmental footprint.
• Developed alternative sourcing strategies (implied)
• Implemented ISO 27001 information security management system.
• Ethics and Compliance audits

Supply Chain Management

Supplier Audits: 24.4% of suppliers evaluated for ethics, human rights, anti-corruption, OHS, and environmental and social issues in 2019; sustainability audits conducted on 1% of suppliers.

Responsible Procurement

• ENKA Supplier Code of Conduct
• Pre-qualification assessments
• Sustainability criteria in supplier selection and evaluation
• Electronic procurement methods
• Supplier training on ethics and compliance

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Flooding

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Development of energy-efficient products
• Transition to renewable energy

Reporting Standards

Frameworks Used: GRI Standards: Core option, UNGC

Certifications: ISO 9001, ISO 27001, ISO 14001, ISO 45001

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• SDG 4, 5, 7, 8, 9, 10, 11, 12, 13, 14, 15, 17

Various initiatives contribute to these goals (see report).

Sustainable Products & Innovation

• Environment-friendly buildings
• Wind turbine towers and parts

Awards & Recognition

• Various awards for ENKA projects and subsidiaries (see page 24-25)

Environmental Metrics

ESG Focus Areas

• Climate Change
• Diversity
• Governance
• Occupational Health and Safety
• Human Rights
• Community Development
• Responsible Supply Chain Management
• Environmental Compliance

Environmental Achievements

• Significant decrease (85.7%) in total water consumption due to power plants being inactive.
• Approximately 2,200 tonnes of carbon dioxide equivalent of greenhouse gas emissions prevented.
• 11,470 kWh of energy generated by solar panels at ENKA Schools Kocaeli in the first month of operation.
• Reduction of 16 TJ in energy consumption as a result of savings and efficiency initiatives.

Social Achievements

• Completed 2020 without the loss of a single employee due to an occupational incident.
• Provided thousands of masks and donations worth approximately USD 1 million to hospitals and first responders.
• 90% overall customer satisfaction rate.
• Local employment rate of 46.2% in Dhi Qar project and 52.4% in Samawa project in Iraq.
• Local employment rate of 90% in Tengiz projects in Kazakhstan.

Governance Achievements

• Inclusion in the Dow Jones Sustainability Index.
• Maintenance of position in the BIST Sustainability Index and FTSE4Good Index.
• No notifications made to the Ethics Hotline regarding bribery and corruption.
• All reports to the Ethics Hotline resolved.

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic and its impact on operations, travel, and employee health.
• Supply chain disruptions.
• Maintaining high ethical standards in challenging operating environments.
• Climate change risks (transition and physical).

Mitigation Strategies

• Implemented Pandemic Preparedness Plans.
• Established PCR laboratories in locations with limited testing access.
• Transitioned to remote working.
• Developed alternative sourcing strategies.
• Strengthened ethics and compliance programs.
• Reviewed environmental management systems and maintained commitments to reduce resource use and increase energy efficiency.

Supply Chain Management

Supplier Audits: 2,220 firms received performance evaluations in 2020; 37.4% evaluated for ethics, human rights, anti-corruption, OHS, environmental, and social issues; 8% audited for compliance with Supplier Code of Conduct.

Responsible Procurement

• ENKA Supplier Code of Conduct.
• Pre-qualification assessments.
• Sustainability criteria in supplier selection and evaluation.
• E-procurement practices (85% compliance in 2020).

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Flooding

Transition Risks

• Legal and technological developments

Opportunities

• Development of energy-efficient products and services
• Transition to renewable energy sources

Reporting Standards

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

Certifications: ISO 9001, ISO 14001, ISO 45001, ISO 27001

Third-party Assurance: Güney Bağımsız Denetim ve Serbest Muhasebeci Mali Müşavirlik A.Ş. (Ernst & Young – EY) - Limited assurance on selected indicators

UN Sustainable Development Goals

• SDG 4 (Quality Education)
• SDG 5 (Gender Equality)
• SDG 6 (Clean Water and Sanitation)
• SDG 7 (Affordable and Clean Energy)
• SDG 8 (Decent Work and Economic Growth)
• SDG 9 (Industry, Innovation, and Infrastructure)
• SDG 10 (Reduced Inequalities)
• SDG 11 (Sustainable Cities and Communities)
• SDG 12 (Responsible Consumption and Production)
• SDG 13 (Climate Action)
• SDG 15 (Life on Land)
• SDG 17 (Partnerships for the Goals)

Various initiatives throughout the report contribute to these goals.

Sustainable Products & Innovation

• Wind turbine towers and parts (Çimtaş Steel).

Awards & Recognition

• ENR Best Global Project Award (Initial Oil Train project in Iraq).
• World Athletes Community Award (ENKA Sports Club).

Environmental Metrics

ESG Focus Areas

• Climate Change
• Diversity & Inclusion
• Governance
• Responsible Supply Chain Management
• Community Investment
• Occupational Health and Safety

Environmental Achievements

• Completed 5.7 MWp rooftop solar power plant project at Çimtaş Steel plant
• Reduced Scope-1 greenhouse gas emissions by 10%
• Reduced Scope-2 greenhouse gas emissions by 51%
• Increased the amount of waste recycled per human-hour spent by 0.010 m3/person-hour
• Increased the amount of water reused at the tire washing stations by 1800 m3
• Reduced the intensity of Scope 1 and 2 greenhouse gas emissions per ton produced by 0.29 tCO2e/ton

Social Achievements

• Direct contributions to local economies through local procurement practices amounted to over USD 774 million
• Increased the number of employees who received the Code of Business Conduct training at the Yandex project to 87.2% (white collar) and 89.6% (blue collar)
• Increased the number of female employees working at the Yandex project to 16.3% (white collar) and 1.39% (blue collar)
• More than 163,000 person-hours of training provided to local employees in 2022
• 421 notifications and complaints received from the local community on the Morava Corridor Motorway Project, 82% resolved

Governance Achievements

• Established and executes an Ethics and Compliance Program
• Revised Supplier Code of Conduct in 2022
• Conducted Ethics and Compliance audits across all projects and subsidiaries
• Provided 6,647 person-hours of training on Code of Business Conduct

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to geopolitical developments and economic sanctions
• Climate change related risks (extreme weather events, water stress)
• Bribery and corruption risks
• Human rights risks in supply chains
• Attracting and retaining talent

Mitigation Strategies

• Prepared more comprehensive, longer-term procurement plans
• Updated crisis management and business continuity plans
• Revised sustainability goals and targets for combating climate change
• Conducted physical risk assessments
• Updated ENKA Code of Business Conduct training
• Conducted Ethics & Compliance audits
• Improved development opportunities for employees
• Diversified communication channels for employee involvement

Supply Chain Management

Supplier Audits: 27% of suppliers audited in 2022

Responsible Procurement

• ENKA Supplier Code of Conduct
• Supplier sustainability audits
• Pre-qualification process for suppliers
• E-RFQ and E-tender applications

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather conditions
• Natural disasters
• Water stress

Transition Risks

• Legal and technological developments
• New legislation (e.g., EU Green Deal)

Opportunities

• Renewable energy projects
• Hydrogen production
• Carbon capture projects
• Energy efficiency projects

Reporting Standards

Frameworks Used: GRI Standards, UN Global Compact

Certifications: ISO 9001:2015, ISO 14001:2015, ISO 45001:2018, ISO 27001, ASME

Third-party Assurance: Güney Bağımsız Denetim ve Serbest Muhasebeci Mali Müşavirlik A.Ş. (Ernst & Young – EY)

UN Sustainable Development Goals

• Goal 7 (Affordable and Clean Energy)
• Goal 8 (Decent Work and Economic Growth)
• Goal 9 (Industry, Innovation, and Infrastructure)
• Goal 11 (Sustainable Cities and Communities)
• Goal 13 (Climate Action)
• Goal 15 (Life on Land)
• Goal 17 (Partnerships for the Goals)

ENKA's initiatives contribute to these goals through renewable energy investments, local employment, infrastructure projects, sustainable building practices, climate action, biodiversity protection, and collaborations with various stakeholders.

Sustainable Products & Innovation

• Low-emission machinery and equipment
• Environment-friendly buildings
• Renewable energy projects

Awards & Recognition

• ENR Global Best Projects Award of Merit
• Capital's “Business World’s Most Admired Companies” award
• Türkiye’s Happiest Workplace award
• Awards from Krusevac Municipality and Center for Social Work

Environmental Metrics

ESG Focus Areas

• Climate Change
• Diversity & Inclusion
• Governance
• Responsible Supply Chain Management
• Social Impact

Environmental Achievements

• Reduced total energy consumption by approximately 19% compared to the previous year.
• Reduced Scope 1 and Scope 2 emissions by 15% compared to 2018 (Real Estate Subsidiaries).
• Significant investments in renewable energy generation at various facilities (Çimtaş Group, ENKA Foundation, ENKA Schools).

Social Achievements

• Mobilized relief efforts following the devastating earthquakes in Türkiye, providing aid and support to affected communities.
• Provided over 166,500 person-hours of training to local employees in 2023.
• Launched the Lale Tara Arts Scholarship to support young artists' studies abroad.

Governance Achievements

• Maintained high rankings in various sustainability indices (FTSE4Good, DJSI).
• Implemented a comprehensive Ethics and Compliance Program, including whistleblower channels and grievance mechanisms.
• Conducted a double materiality analysis to identify key sustainability issues.

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to geopolitical tensions and extreme weather events.
• Meeting increasing stakeholder expectations regarding sustainability and climate change.
• Ensuring compliance with evolving national and international regulations.

Mitigation Strategies

• Developed alternative sourcing strategies and strengthened relationships with local suppliers.
• Updated sustainability strategy and targets based on stakeholder feedback and materiality analysis.
• Implemented comprehensive risk management and control mechanisms.

Supply Chain Management

Supplier Audits: 13% of suppliers audited in 2023.

Responsible Procurement

• ENKA Supplier Code of Conduct
• Supplier pre-qualification and performance evaluation processes
• Sustainability criteria in supplier selection

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Natural disasters
• Water stress

Transition Risks

• Market risks
• Supply chain disruptions
• Changes in carbon pricing policies

Opportunities

• Investments in renewable energy
• Energy efficiency improvements
• Development of sustainable products and services

Reporting Standards

Frameworks Used: GRI Standards, SASB Industry Standards, UN Global Compact, UN Sustainable Development Goals (SDGs), IFRS S1 and S2, TSRS

Certifications: ISO 9001, ISO 14001, ISO 45001, ISO 50001 (Çimtaş Group and ENKA Power)

Third-party Assurance: KPMG Bağımsız Denetim ve Serbest Muhasebeci Mali Müşavirlik A.Ş. (Limited Assurance)

UN Sustainable Development Goals

• SDG 3 (Good Health and Well-being)
• SDG 7 (Affordable and Clean Energy)
• SDG 8 (Decent Work and Economic Growth)
• SDG 9 (Industry, Innovation and Infrastructure)
• SDG 11 (Sustainable Cities and Communities)
• SDG 12 (Responsible Consumption and Production)
• SDG 13 (Climate Action)
• SDG 15 (Life on Land)
• SDG 17 (Partnerships for the Goals)

ENKA's initiatives contribute to these goals through various projects and programs related to health and safety, renewable energy, economic development, infrastructure, responsible resource management, climate action, biodiversity conservation, and stakeholder engagement.

Sustainable Products & Innovation

• Wind turbine towers and parts (Çimtaş Steel)
• Environmentally friendly construction materials and methods

Awards & Recognition

• ENR Global Best Project Awards (Nassau Cruise Port, West Qurna 1 Produced Water 2 Facility)
• International Safety Awards 2023 (Misurata 650 MW Simple Cycle Power Plant)
• ExxonMobil Breaking Barriers award (West Qurna 1 Produced Water 2 Facility)