Climate Change Data

Environmental Metrics

ESG Focus Areas

• Sustainability
• Environmental Responsibility
• Social Responsibility
• Employee Well-being
• Accessibility
• Community Investment

Environmental Achievements

• Reduced water consumption per unit product by 36% despite a 55% increase in household appliance production over 5 years.
• Developed "zero-waste" Nano Chrome Coating Manufacturing Technology, eliminating hazardous materials and water usage.
• Developed energy-efficient products with A+, A++, and A+++ energy labels.
• Achieved 8.5% reduction in electricity consumption per unit product through efficiency projects.

Social Achievements

• Launched Women’s Technician Training Project, training 13 women technicians in 2019.
• Recruited 69 disabled individuals in 2019, bringing the total to 469.
• Developed WeWALK smart stick for the visually impaired, recognized by TIME magazine as one of the 100 Best Inventions of 2019.
• Opened Turkey’s first "Without Obstacles" Authorized Service Provider.

Governance Achievements

• Corporate Governance Rating revised upwards to 9.59 (95.87%) in 2019.
• Implemented ISO 14001, ISO 50001, ISO 14064, and ISO 14046 certifications.
• Participated in the CDP, reporting carbon emissions data.

Climate Goals & Targets

Environmental Challenges

• Contraction in domestic TV and white goods markets.
• Increased competition in export markets.
• Uncertainty regarding trade with the UK post-Brexit.

Mitigation Strategies

• Focused on export markets, achieving double-digit growth in white goods exports.
• Developed innovative products and implemented agile management.
• Diversified export markets.

Supply Chain Management

Responsible Procurement

• Supplier Lifecycle Management (SLC) project implemented, managing 2,253 suppliers.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: ISO 14001, ISO 50001, ISO 14064, ISO 14046, CDP

Certifications: ISO 14001, ISO 50001, ISO 14064, ISO 14046

UN Sustainable Development Goals

• Goal 7 (Affordable and Clean Energy)
• Goal 9 (Industry, Innovation, and Infrastructure)
• Goal 12 (Responsible Consumption and Production)
• Goal 13 (Climate Action)

Vestel's initiatives contribute to these goals through energy-efficient products, sustainable production practices, waste reduction, and renewable energy usage.

Sustainable Products & Innovation

• WeWALK smart stick
• Energy-efficient household appliances
• LED lighting products

Awards & Recognition

• TPM Excellence Award
• Award for Excellence in Consistent TPM Commitment
• Special Award for TPM Achievement
• Advanced Special Award for TPM Achievement
• Industrial Excellence Award
• Green Dot Award
• Best Social Responsibility Project Award
• Best Practice Award
• CSR World Leader
• Energy Efficiency Awards - Grand Industry Award
• European Business Awards for the Environment
• Technology Stars Awards - Star of Innovation Award
• Technology Awards - Large-Scale Enterprise Process Category Award
• Employer Brand Management Awards - Bronze Award
• Stevie International Business Awards - Bronze Award
• Kariyer.net - The Respect for People Award
• Secretcv - “the Stars of the HR” Category Award
• Hacettepe University Crystal Deer Award - Golden Award

Environmental Metrics

ESG Focus Areas

• Environmental Sustainability
• Social Responsibility
• Corporate Governance

Environmental Achievements

• Reduced water consumption per unit product by 24% in the last 4 years and by 6.4% in 2020
• Reduced total amount of waste per unit product by 3.5% and the amount of hazardous waste by 9.1% in 2020
• Achieved zero waste to landfill in 2020 by recycling or recovering all production-related wastes
• Implemented 119 energy efficiency projects in 2020, resulting in electricity savings of 11,340,362 kWh and a 6.7% decrease in total energy consumed per unit product

Social Achievements

• Launched corporate Well-Being Program, “We Are Good Together”, providing various healthy life supports for employees
• Awarded “TSE COVID-19 Safe Production Certificate” for implemented COVID-19 measures
• Donated household appliances and other equipment to healthcare institutions at more than 200 points in Turkey
• Provided free 24/7 technical support for healthcare professionals
• Supported children undergoing cancer treatment by covering treatment expenses and donating a percentage of online sales
• Implemented Women Technicians Project, training 58 women technicians by the end of 2020
• Employed 19 individuals with disabilities in 2020

Governance Achievements

• Full compliance with mandatory Corporate Governance Principles and adoption of the majority of non-compulsory principles
• Established Early Detection of Risk Committee for risk management
• Implemented an Integrated Management System including ISO 14001, ISO 50001, ISO 9001, ISO 45001, and ISO/IEC 27001 certifications

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impacting global and national economies, causing supply chain disruptions and changing consumer behavior
• Increased prices of key inputs such as steel, plastics, and metals
• Maintaining export volumes during economic contraction in the EU

Mitigation Strategies

• Implemented comprehensive COVID-19 safety measures and received “TSE COVID-19 Safe Production Certificate”
• Maintained production without interruption (except for a one-week halt at the pandemic’s onset)
• Diversified supplier base to overcome supply problems
• Introduced 24-hour delivery service to strengthen online sales and customer relationships
• Introduced hygiene and health-oriented products to meet changing consumer demand
• Acquired White Knight and Hostess trademarks to strengthen position in the UK market

Supply Chain Management

Responsible Procurement

• Zorlu Holding Supply Chain Principles signed with suppliers, covering anti-discrimination, humane treatment, remuneration, working hours, occupational health and safety, environment, and ethics.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI, CDP

Certifications: ISO 14001, ISO 50001, ISO 9001, ISO 45001, ISO/IEC 27001, ISO 14064, ISO 14046, TSE COVID-19 Safe Production Certificate

UN Sustainable Development Goals

• Goal 7 (Affordable and Clean Energy)
• Goal 9 (Industry, Innovation and Infrastructure)
• Goal 12 (Responsible Consumption and Production)
• Goal 13 (Climate Action)
• Goal 8 (Decent Work and Economic Growth)
• Goal 10 (Reduced Inequalities)
• Goal 3 (Good Health and Well-being)
• Goal 11 (Sustainable Cities and Communities)

Vestel Beyaz Eşya's initiatives contribute to these goals through energy efficiency, waste reduction, responsible sourcing, employee well-being, community investment, and sustainable product development.

Sustainable Products & Innovation

• Refrigerators with A+++ energy label and vacuum technology
• Dishwashers with A+++ energy label and water-saving technologies
• Washing machines with A+++ energy label and hygiene programs
• Ovens with A++ energy label and HeatWrap technology
• Air conditioners with energy-saving features
• Tumble dryers with A+++ energy label and environmentally friendly refrigerant

Awards & Recognition

• TSE COVID-19 Safe Production Certificate
• Grand Industry Award (Istanbul Chamber of Industry Energy Efficiency Awards)
• Best Social Responsibility Project Award (ACE of M.I.C.E Awards 2019)
• Best Practice Award (International CSR Excellence Awards)
• CSR World Leader title (Green Organization)
• Most Creative Volunteering Project Award (Heartfelt Awards)
• Best Project Film Award (Heartfelt Awards)
• Best Remote Call Center Award (13th Turkey Call Center Awards)
• ISO 29990 Certificate (Vestel Service Academy)
• Golden Award (KALDER Successful Team of the Year Awards 2020)
• Top Talent – Top 100 – Talent Program 2020 Most Admired Talent Programs of the Year Award
• Istanbul Technical University Employer of the Year Offering the Most Internships Award

Environmental Metrics

ESG Focus Areas

• Climate Crisis and Transition to a Zero Carbon Economy
• Circular Economy and Waste
• Technology and Human-Oriented Transformation
• Accessible and Smart Solutions That Make Life Easier
• Responsible Supply Chain

Environmental Achievements

• 14% reduction in Scope 1 and Scope 2 emissions compared to 2021
• Energy savings of 7,200 MWh and a reduction of 3,290 tonnes of carbon emissions
• 175 MWh of renewable energy use
• Waste recycling by 91.4%
• 62,984 products renewed as part of circular economy
• A reduction of 8,203 tonnes in plastics
• Prevention of 376,618 trees from being cut down by using 22,154 tonnes of recycled cardboard

Social Achievements

• Vestel Customer Services and Vestel Ticaret were selected as “Türkiye’s Best Workplace” by Kincentric
• Increased its S&P Global ESG score by 44% to 65 points in 2022
• A 2% increase in the employment of the disabled
• 20 hours of training per employee per year
• A female employee share of 34%
• A high-performing employee turnover rate of 3.6%
• Community investment of TL 27.5 million

Governance Achievements

• Establishment of the Sustainability Committee
• Vestel Elektronik was included in Borsa Istanbul’s BIST Sustainability 25 Index

Climate Goals & Targets

Environmental Challenges

• High inflation, rising cost of living, and negative impact of geopolitical uncertainties on consumer confidence
• Supply chain disruptions due to the Russia-Ukraine war and ongoing COVID restrictions in China
• Chip and shipping container issues
• Fluctuations in foreign exchange rates
• Possible increase in interest rates
• Possible imbalances in cash flows
• Failure to collect receivables
• Cyber risks
• Talent management risks
• Supply chain risks
• Water risk
• Risks related to circular economy and waste
• R&D and innovation risks

Mitigation Strategies

• Market diversification and strong growth in non-European markets
• Diversified supply chain structure and alternative components developed through R&D
• Proactive balance sheet management and derivative transactions
• Interest rate swaps and similar derivative instruments
• Effective financial management and intervention plans
• Trade receivables insurance
• Cyber threat intelligence management, periodic scanning, vulnerability assessments, and security measures
• Competitive wage and benefit adjustments, employee loyalty projects, and talent attraction initiatives
• Alternative material studies, faster supply shipments, safety stocks approach, and hedging strategies
• Water-efficient projects, water recycling, and water quality analyses
• Industry 4.0 activities, zero waste factories, repair and second-hand sales models, and R&D on recycled materials
• Increased R&D budget, diversification of funding support, horizontal integration, and collaborations with ventures

Supply Chain Management

Supplier Audits: 228 suppliers audited for Vestel Elektronik in 2022

Responsible Procurement

• Zorlu Holding AŞ Supplier Code of Conduct
• Supplier Quality Assurance (SQA) audits
• ESG audits
• Business ethics audits
• Conflict Minerals Reporting Template (CMRT)

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events, water stress

Transition Risks

• Carbon pricing, CBAM, failure to meet climate targets

Opportunities

• Development of energy-efficient products, renewable energy investments, resilience against business interruptions

Reporting Standards

Frameworks Used: GRI, TCFD, UNGC

Certifications: ISO 14001, ISO 45001, ISO 9001, ISO 14064, ISO 14046, ISO 27001, TS EN ISO 18295-1, TS ISO 29990

UN Sustainable Development Goals

• SDG 4 (Quality Education)
• SDG 5 (Gender Equality)
• SDG 8 (Decent Work and Economic Growth)
• SDG 7 (Affordable and Clean Energy)
• SDG 9 (Industry, Innovation and Infrastructure)
• SDG 12 (Responsible Consumption and Production)
• SDG 13 (Climate Action)

Various social and environmental projects aligned with these goals

Sustainable Products & Innovation

• Energy-efficient appliances, water-efficient appliances, products with reduced plastic use, products with recycled materials, Daylight technology products, Maya Refrigerator, Philie TV

Awards & Recognition

• Türkiye’s 4th most valuable brand (Brand Finance)
• Export champion for the 24th time (TIM Awards)
• Best Stand Award at ISE2022 Barcelona
• Headline sponsor at AVAwards2022 London
• Green Dot Industry Award
• Vestel Internal Trainer Development Project Silver Award (TEGEP)
• Retail Orientation Program Best Training and Development Program Award (TEGEP)
• Vestel MT Program 3rd prize in “Most Admired Talent Programs of 2022” (Toptalent.co)

Environmental Metrics

ESG Focus Areas

• Climate Crisis and Transition to a Zero Carbon Economy
• Circular Economy and Waste
• Talent Management and Employee Engagement
• Digitalization and Consumer Experience
• Responsible Supply Chain

Environmental Achievements

• 13% reduction in Scope 1 and 2 emissions compared to 2021
• Generated 170 MWh of energy in 2023 with solar panels
• Reduced waste sent to landfills by 18%
• Used 8,193 tons of recycled cardboard, 4,515 tons of which was FSC-logoed
• Reduced plastic in products by 313 tons
• Avoided 5,385 tons of raw plastic by using recycled plastic

Social Achievements

• Launched the Female Technician Training Project
• Increased the share of female employees in STEM positions to 24%
• Implemented the “Viva!” Project to improve employee quality of life
• 200 employees volunteered for a total of 668 hours in corporate volunteering activities
• Launched Elim Sende (You Have My Hand) project to support women victims of violence

Governance Achievements

• Established a Sustainability Committee at the Board of Directors level
• Adopted the Zorlu Holding Corporate Risk Management Policy and Corporate Risk Management Regulation
• Provided one hour of information security training to 845 employees

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to geopolitical tensions and climate change
• Talent shortage in engineering and technology sectors
• Cyber risks related to digitalization
• Plastic and waste pollution
• Climate change risks (transition and physical)

Mitigation Strategies

• Developed alternative sourcing strategies
• Implemented employee satisfaction and loyalty projects
• Strengthened cyber security measures
• Developed products and business models addressing circular economy and plastic pollution
• Developed a decarbonization strategy and committed to SBTi

Supply Chain Management

Supplier Audits: 250 audits in 2023

Responsible Procurement

• Vestel Supplier Code of Conduct
• Vestel Supplier Monitoring and Development Program

Climate-Related Risks & Opportunities

Physical Risks

• Water stress
• Extreme weather events

Transition Risks

• Policy risks
• Legal risks
• Market risks
• Technology risks
• Reputation risks

Opportunities

• Renewable energy investments
• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI Standards, Integrated Reporting Framework, TSRS 1, TSRS 2, UNGC

Certifications: ISO 9001, ISO 45001, ISO 27001, ISO 14046, TS ISO 29993

Third-party Assurance: PwC Bağımsız Denetim ve Serbest Muhasebeci Mali Müşavirlik AŞ (Limited Assurance)

UN Sustainable Development Goals

• Goal 4 (Quality Education)
• Goal 5 (Gender Equality)
• Goal 8 (Decent Work and Economic Growth)
• Goal 9 (Industry, Innovation and Infrastructure)
• Goal 12 (Responsible Consumption and Production)
• Goal 13 (Climate Action)

Various social and environmental projects aligned with SDGs

Sustainable Products & Innovation

• Energy-efficient appliances
• Washing machines with microfiber filters
• Products using bio-based plastics

Awards & Recognition

• InovaLIG first place in 'Innovation Cycle' category
• German Innovation Award Special Mention
• Türkiye Customer Experience Awards (Gold and Silver)
• Stevie Awards (Gold and Bronze)
• Globee Sales Awards (Gold and Silver)
• S&P Global Corporate Sustainability Assessment (65 points)