Climate Change Data

OYAK Çimento Fabrikaları A.Ş.

Climate Impact & Sustainability Data (2021, 2022)

Reporting Period: 2021

Environmental Metrics

Total Carbon Emissions:135,000 tons CO2 reduction annually (from OYAK Cement 4.0 Project)
Renewable Energy Share:22.5% of total energy use from alternative sources
Total Energy Consumption:7,303,799 Gcal total energy consumption; 1,641.012 Gcal (22.5%) from alternative sources
Water Consumption:Total water consumption 1,909,652 m3 (various sources)
Waste Generated:Implemented Zero Waste Project in 2021

ESG Focus Areas

  • Digitalization
  • Sustainability
  • Climate Change
  • Energy Efficiency
  • Circular Economy
  • Occupational Health and Safety
  • Growth in the international market
  • Decarbonization

Environmental Achievements

  • Increased alternative fuel use rate by 38% from 2020 to 2021, reaching 22.5% (thermal substitution rate).
  • Reduced CO2 emissions by 135,000 tons annually with OYAK Cement 4.0 Project.
  • Achieved 30% reduction in electricity requirement for white cement compared to 2016.
  • 20.74% Alternative Raw Material Displacement Rate.

Social Achievements

  • Launched OYAK DigitalHR project, covering over 30,000 employees.
  • Employee engagement survey showed 72% satisfaction rate.
  • Implemented the “10 GOLDEN RULES” project for Occupational Health and Safety.
  • Conducted various CSR projects including afforestation, coastal cleaning, and support for rural road improvement.

Governance Achievements

  • Established a Sustainability Board and Committee.
  • Implemented Ethi.co for ethical management.
  • Received the Digitalization Award from TİSK for OYAK Cement 4.0 Project.

Climate Goals & Targets

Long-term Goals:
  • Net-Zero CO2 emissions by 2050.
Medium-term Goals:
  • 33% reduction in CO2 emissions by 2030 (compared to 2015).
Short-term Goals:
  • Increase alternative fuel use rate to 32% in the next two years.

Environmental Challenges

  • Disruptions in the global logistics chain.
  • Increased pressure due to climate change and decarbonization processes.
  • Overcapacity in the Turkish cement sector, making exports necessary.
  • Lack of a clear roadmap for decarbonization in the Turkish cement sector.
Mitigation Strategies
  • Increased use of sea transportation for logistics.
  • Set a net-zero target and joined the Science-Based Targets Initiative.
  • Investing in renewable energy resources.
  • Implementing an integrated management system (ISO 9001-14001-50001 and 45001).
  • R&D and innovation studies on carbon capture, utilization, and storage.

Supply Chain Management

Supplier Audits: 99% of 1,527 suppliers are local.

Responsible Procurement
  • Prioritizing local suppliers.

Climate-Related Risks & Opportunities

Physical Risks
  • Climate risks affecting supply chain and operations.
Transition Risks
  • Decarbonization processes and energy transformation risks.
Opportunities
  • Increased use of alternative fuels and renewable energy; development of low-carbon products.

Reporting Standards

Frameworks Used: International Integrated Reporting Council (IIRC), Global Reporting Initiative (GRI)

Certifications: ISO 9001, ISO 14001, ISO 50001, ISO 45001

Sustainable Products & Innovation

  • Low-carbon CEM VI (S LL) 32.5 R type cement; DeOHClay (calcined clay) for lower CO2 emissions.

Awards & Recognition

  • Digitalization Award from TİSK (2021)
  • Cement Sector Occupational Health and Safety Performance Awards (Ünye and Mardin Cement)

Reporting Period: 2022

Environmental Metrics

Total Carbon Emissions:7,909,070 tonnes of total greenhouse gas emissions
Total Energy Consumption:97 kWh/tonne cement production energy intensity
Water Consumption:12,427,806 m³
Waste Generated:7,204,536 kg total non-hazardous waste; 1,564,095 kg total hazardous waste

ESG Focus Areas

  • Sustainable economic growth and profitability
  • Circular economy
  • Occupational health and safety
  • Climate change and energy
  • Growth in the international markets
  • Technological transformation and operational efficiency
  • Environmental footprint
  • Digitalization

Environmental Achievements

  • Achieved a 24.7% alternative fuel thermal substitution rate, well above the Turkish industry average.
  • Brought 1,140,091 tonnes of waste into the circular economy.
  • Reduced electricity consumption to produce one tonne of white cement by 22.7% compared to 2016.
  • Achieved energy savings equivalent to 67,554 MWh.

Social Achievements

  • Zero fatal accidents.
  • Provided 74,980 total training hours.
  • Implemented Employee Support Program (ESP).

Governance Achievements

  • Full compliance with mandatory Corporate Governance Principles.
  • Established Sustainability Board and Committee.
  • Implemented DigitalHR for increased synergy and cooperation.

Climate Goals & Targets

Long-term Goals:
  • Net-zero carbon emissions by 2050.
Medium-term Goals:
  • Achieve 2% emission reduction by 2030.
Short-term Goals:
  • Reduce emissions per tonne of cement by 22.8% by 2023 (from 2021 baseline).
  • Increase alternative fuel substitution rate to 30% by 2023.

Environmental Challenges

  • High inflation, economic slowdown, volatility in commodity prices.
  • Global logistics chain disruptions.
  • Climate change and decarbonization pressures.
  • EU Green Deal and Carbon Border Adjustment Mechanism (CBAM).
Mitigation Strategies
  • Focus on financial structure soundness and liquidity management.
  • Logistics optimization and risk assessment.
  • Net-zero commitment and 2050 roadmap.
  • Investment in alternative fuels, waste heat recovery, and low-carbon products.

Supply Chain Management

Responsible Procurement
  • Supplier visits and inspections to ensure compliance with human rights principles.

Climate-Related Risks & Opportunities

Transition Risks
  • EU Green Deal and CBAM
Opportunities
  • Development of low-carbon products; use of alternative fuels.

Reporting Standards

Frameworks Used: GRI Standards 2021, IFRS Foundation's Integrated Reporting Framework

Certifications: ISO 9001 Quality, ISO 14001 Environment, ISO 45001 Occupational Health and Safety, ISO 50001 Energy Management

Sustainable Products & Innovation

  • CEM VI/(S-LL) 32.5 R cement; Alfacem; SnoWhite; Novocem; CEMENTUM.

Awards & Recognition

  • Digitalization Award at the TİSK Common Futures Competition (2021); ÇEİS Occupational Health and Safety Performance Awards (2021).