Enerjisa Enerji A.Ş.

Climate Impact & Sustainability Data (2021, 2022, 2023)

Reporting Period: 2021

Environmental Metrics

Total Carbon Emissions:18,961,952 tCO2e/year

Scope 1 Emissions:59,952 tCO2e/year

Scope 2 Emissions:1,940,000 tCO2e/year

Scope 3 Emissions:16,970,000 tCO2e/year

Renewable Energy Share:96% of total energy use

Water Consumption:95,285 m3/year

Waste Generated:11,367 tons/year (recycled)

Carbon Intensity:0.62 kg CO2 / TL in 2021

ESG Focus Areas

Climate Change and Carbon Management
Occupational Health and Safety
Sustainable Products and Services
Ethics and Anti-Corruption
Employee and Human Rights
Customer Satisfaction and Orientation
Supply Chain
Risk Management
Energy Efficiency
Diversity and Inclusion
Corporate Responsibility
Innovation
Talent Management
Stakeholder Engagement
Biodiversity
Data Security
Waste Management
Water Management

Environmental Achievements

CDP Climate Change and CDP Water score increased to B
Direct electricity consumption supplied by 96% green energy
Water consumption reduced by 3,370 m3 year-on-year
11,367 tons of waste recycled
c. 12,200 tons of CO2 emissions were prevented with the installed SPPs.
c. 3,650 MWh of energy was conserved and emissions of c. 1,730 tons of CO2 was prevented through Lighting Conversion Solutions

Social Achievements

Launched ‘Not Without You’ (Sensiz Olmaz), Diversity, Equity and Inclusion Platform
Employee satisfaction score 76% and employee engagement score 66%, above the energy sector and Turkey averages
TL 38.6 million in donations
2,051 customers used the Device Dependent Patient (Hasta Var) program
Social impact of ‘I am Protecting the Energy of the World’ project SROI = 2.7

Governance Achievements

Established internal control system
Green Finance Framework completed and Second Party Opinion received
Inclusion in FTSE4Good Index Series as of June 2022
Commitment to Transparency International Principles
Issued “Diversity and Inclusion”, “Anti-Retaliation”, “Third-Party Relations” and “Compliance” Policies

Climate Goals & Targets

Long-term Goals:

Net Zero emissions

Medium-term Goals:

Increase solar power capacity installed for customers to 42 MWp
Increase the number of electric vehicle charging sockets (public) to 1,000
Increase the ratio of women appointment in managerial appointments to 30%

Short-term Goals:

Reduce water consumption
Increase the share of electric forklifts in our fleet
Complete Energy Efficiency Certification (Distribution)

Environmental Challenges

Supply chain problems and increasing inflationary pressures
Global increase in commodity prices, particularly high gas prices in Europe
Increase in cost of sourcing electricity due to increased prices of coal and natural gas and below average hydroelectric production due to drought
Disruption of the supply chain in global markets due to the pandemic

Mitigation Strategies

Agile management style, supply planning and support for the local supply chain
Accelerated renewable energy deployment, energy efficiency, electrification of transportation and heating and demand management
Contacting sub-suppliers of suppliers experiencing supply shortages to monitor the entire supply chain
Shortening contract periods and implementing price adjustments to reflect changes in commodity prices

Supply Chain Management

Supplier Audits: Over 3,000 suppliers, 100% local

Responsible Procurement

Enerjisa Supplier Business Rules
Enerjisa Supplier Compliance Declaration
Enerjisa OHS and Environmental Policies
Anti-Bribery and Anti-Corruption Policy

Climate-Related Risks & Opportunities

Physical Risks

Severe weather conditions
Droughts

Transition Risks

Global and regional regulatory environment
Turkey’s ratification of the Paris Agreement

Opportunities

Development of energy-efficient products and services
Renewable energy integration

Reporting Standards

Frameworks Used: GRI Standards: Core option

Certifications: ISO 14001, ISO 45001, ISO 27001, ISO 9001, ISO 10002, ISO 22301

Third-party Assurance: Limited assurance report provided in Annex I

UN Sustainable Development Goals

Initiatives contribute to UN Sustainable Development Goals 7 (Affordable and clean energy) and 13 (Climate action).

Sustainable Products & Innovation

Green Energy Certificates
Cogeneration
Energy efficiency products
Solar Power Plant projects
Regulated Green Energy Tariff Sales
Solar PV Rooftop
Green Energy Sales
Eşarj AC
Eşarj DC

Awards & Recognition

4th Energy and Natural Resources Summit, “Social Benefit” Award
Corporate Social Responsibility Association, “Responsible Consumption and Generation” Award
Golden Compass, “Corporate Social Responsibility” Award
CSR Excellence, “Best Energy Management” Award
Communitas Awards, “Ethics and Environmental Responsibility” Award

Reporting Period: 2022

Environmental Metrics

Total Carbon Emissions:1,635,972 tCO2e/year (Scope 1 & 2)

Scope 1 Emissions:45,280 tCO2e/year

Scope 2 Emissions:1,590,692 tCO2e/year

Scope 3 Emissions:19,877,523 tCO2e/year

Renewable Energy Share:97.2% (direct electricity consumption)

Waste Generated:11,401 tons/year (recycled)

Carbon Intensity:0.25 kg CO2/TL (2022)

ESG Focus Areas

Climate Change and Carbon Management
Occupational Health and Safety
Sustainable Products and Services
Ethics and Anti-Corruption
Employee and Human Rights
Customer Satisfaction and Orientation
Supply Chain
Risk Management
Energy Efficiency
Diversity and Inclusion
Corporate Responsibility
Innovation and Digitalization
Talent Management
Stakeholder Engagement
Biodiversity
Data Security
Waste Management
Water Management

Environmental Achievements

Share of renewable electricity in direct electricity used: 97.2%
11,401 tons of waste recycled
85 tons of rainwater harvested
8,200 MWh total energy saved
Over 26,680 tons CO2 per annum prevented

Social Achievements

Launched several talent development programs (e.g., Young Energy, Enter, ITalent, Retail-X, Spark, TP-X, Seed)
Employee satisfaction score: 82%
Employee engagement score: 73%
Percentage of women in managerial positions: 27%
Percentage of women in white-collar positions: 31%
41.3 training hours per employee
TL 127.1 million in donations
15,516 volunteer hours by Enerjisa employees
2,281 customers used the Device Dependent Patient program

Governance Achievements

Established the Compliance Function
Updated Code of Conduct
Received ISO 37301 Compliance Management System Certification
Increased FTSE4Good Index rating to 4.0 out of 5.0
Included in Borsa İstanbul Sustainability 25 index
Executive Compensation Linked To ESG: Yes (CEO compensation linked to climate-related KPIs)

Climate Goals & Targets

Long-term Goals:

Achieve net-zero emissions by 2050
Maintain ISO certifications
Increase white-collar female ratio to 40% by 2030
Increase female ratio in top management to 33% by 2030
Increase EU Taxonomy Compliant Products & Services Revenues to Total Revenue (%) to 14.08% by 2030

Medium-term Goals:

Reduce Scope 1 and 2 emissions by 30% by 2030
Zero Waste certification of all locations by 2025
Increase white-collar female ratio to 35% by 2025
Increase female ratio in top management to 33% by 2025
Increase EU Taxonomy Compliant Products & Services Revenues to Total Revenue (%) to 9.26% by 2025

Short-term Goals:

Reduce Scope 1 and 2 emissions by 10% by 2023
Zero Waste certification of all locations by 2023
Reduce water consumption by 1% per capita by 2023
Reduce critical accidents to 35 by 2023

Environmental Challenges

Supply chain disruptions due to the pandemic and the Russia-Ukraine crisis
High inflation rates
Climate-related risks (extreme weather events)
The devastating earthquakes on February 6, 2023

Mitigation Strategies

Revised procurement matrix to account for material supply risks
Introduced frame contracts to safeguard supply chain
Prioritized grid investments to enhance resilience against climate-related risks
Implemented a Natural Disaster Action Plan
Agile investment and supply planning to maintain investment momentum despite challenges

Supply Chain Management

Supplier Audits: 18,934 OHS field inspections/year

Responsible Procurement

Enerjisa Code of Conduct
People Guidelines
Enerjisa Supplier Business Rules
Enerjisa Supplier Compliance Declaration
Enerjisa OHS and Environmental Policies
Anti-Bribery and Anti-Corruption Policy
Third Party Relations Policy

Climate-Related Risks & Opportunities

Physical Risks

Extreme weather events

Transition Risks

Changes in energy mix
Fluctuations in customer demand
Evolving regulations

Opportunities

Increased demand for low-carbon solutions
Growth in renewable energy sector
Expansion of e-mobility

Reporting Standards

Frameworks Used: IIRC, GRI, TCFD

Certifications: ISO 14001, ISO 50001, ISO 45001, ISO 27001, ISO 37301

Third-party Assurance: Third-party assurance for significant ESG indicators

UN Sustainable Development Goals

Multiple SDGs supported (details in report)

Initiatives contribute to various SDGs (details in report)

Sustainable Products & Innovation

Solar power plants
Energy efficiency applications
E-mobility solutions
Green energy certificates

Awards & Recognition

Numerous awards received in 2022 (listed in the report)

Reporting Period: 2023

Environmental Metrics

Total Carbon Emissions:21,047,334 tCO2e/year

Scope 1 Emissions:48,554 tCO2e/year

Scope 2 Emissions:1,700,774 tCO2e/year

Scope 3 Emissions:19,298,007 tCO2e/year

Renewable Energy Share:98.68%

Water Consumption:103,260 m3/year

Carbon Intensity:0.12 kg CO2/TL in 2023

ESG Focus Areas

Climate Change and Carbon Management
Energy Efficiency
Biodiversity
Water Management
Waste Management
Diversity, Equity, and Inclusion
Corporate Social Responsibility
Occupational Health and Safety
Governance
Human Rights
Supply Chain Sustainability
Customer Satisfaction
Innovation and Digitalization
Talent Management

Environmental Achievements

CDP Climate Change score increased to A- and CDP Water Security score increased to A
Reduced water consumption by 9.60% per m2 compared to 2022
Recycled 15,234 tons of waste
Direct electricity consumption supplied by 98.68% green energy
266 tons of rainwater harvested compared to 85 tons in 2022
29.5 MWp of total installed Solar Power Plant capacity
917,000 MWh of electricity supplied from renewable energy sources
Over 48,430 tons potential CO2 per annum prevented by helping customers reduce their energy consumption

Social Achievements

Launched ‘For a Better Future Platform’
81% employee satisfaction score and 72% employee engagement score
Women in managerial positions 27%
35 training hours per employee
TL 168 million donations
5,175 Enerjisa employees dedicated a total of 16,233 hours to volunteering activities
Included in Bloomberg Gender Equality Index

Governance Achievements

Corporate Governance Rating: 96.32 out of 100
Established ‘For a Better Future Platform’
Maintained ISO 37301 Compliance Management System Certification
ESG related risks and opportunities mapped within the existing Enterprise Risk Management System

Climate Goals & Targets

Long-term Goals:

Net Zero emissions by 2050

Medium-term Goals:

Reduce absolute Scope 1 and 2 emissions by 30% by 2030
Reduce emission intensity of sold electricity related to Scope 3 emissions by 40% by 2030
Achieve 100% zero waste certification across all business units by 2030
Achieve 100% renewable electricity in our operations by 2030
Expand Eşarj renewable energy sales to 250 GWh by 2030

Short-term Goals:

Reduce absolute Scope 1 and 2 emissions by 10% by 2025
Reduce emission intensity of sold electricity related to Scope 3 emissions by 25% by 2025
Achieve 58% zero waste certification in all operational buildings by 2024
Reduce water consumption by 3.5% by 2024
Increase the representation of women in our workforce by 2024

Environmental Challenges

Macroeconomic and political uncertainties
Effects of climate change and regional wars
Devastating earthquakes
Supply chain disruptions
Water scarcity risks
Climate-related risks (transitional and physical)

Mitigation Strategies

Continued investment operations to recover infrastructure
Developed alternative sourcing strategies
Launched ‘For a Better Future Platform’ to support projects that drive economic efficiency
Implemented measures like awareness campaigns, water-saving devices, and rainwater harvesting
Developed a comprehensive climate transition plan
Integrated climate-related scenario analysis into strategic planning
Implemented audits and monitoring processes to ensure adherence to the highest standards of ethical and sustainable practices

Supply Chain Management

Supplier Audits: Number not specified, but audits are conducted for high-risk areas and critical suppliers.

Responsible Procurement

Code of Conduct
Supplier sustainability requirements
Local sourcing (100% for distribution business)
ESG-based supply chain management system

Climate-Related Risks & Opportunities

Physical Risks

Storms/extreme wind/heavy snowfall
Floods
Heat waves
Cold waves

Transition Risks

Changes in carbon market dynamics
Electrification of end use
Regulatory changes

Opportunities

Electrification of end use and increased adoption of distributed energy resources (DERs)
Developments in energy storage technologies
Increased share of renewables in the energy mix

Reporting Standards

Frameworks Used: GRI Standards, TCFD, UNGC, WEPs, Integrated Reporting (IR)

Certifications: ISO 14001, ISO 45001, ISO 50001, ISO 9001, ISO 10002, ISO 27001, ISO 20000, ISO 22301, ISO 37301, LEED GOLD

Third-party Assurance: PwC

UN Sustainable Development Goals

SDG 7: Affordable and Clean Energy
SDG 8: Decent Work and Economic Growth
SDG 12: Responsible Consumption and Production
SDG 13: Climate Action

Initiatives contribute to these goals through renewable energy projects, job creation, waste reduction, emissions reduction, and biodiversity conservation.

Sustainable Products & Innovation

Solar power plants
Wind power plants
Energy storage solutions
Lighting conversion projects
Process efficiency projects
Renewable Energy Certificates
Carbon Reduction Certificates
Electric vehicle charging stations

Awards & Recognition

CDP Climate Change A-
CDP Water Security A
Bloomberg Gender Equality Index
Numerous other awards listed in the report