Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental Sustainability
• Human Resources
• Corporate Governance

Environmental Achievements

• Continuous monitoring of wastewater discharge and process water, and recovery of intermediate process wastes for reuse.
• Obtained an Environmental Permit Certificate from the Turkish Republic Ministry of Environment and Urban Planning.

Social Achievements

• Collective labor contract signed with Turkey Cement, Ceramics, Land and Glass Industry Labour Union.
• Master training seminars launched for ceramic masters.
• No child labor employed.

Climate Goals & Targets

Environmental Challenges

• Fluctuations in foreign exchange rates and international energy markets.
• Increase in paper and wood costs.
• Increase in unit prices of imported raw materials (zinc, zircon, alumina).
• Insufficient search and extraction of raw materials.

Mitigation Strategies

• Studies increasing local/national input usage to reduce costs.
• Investments in digital press, ceramic brightening/dimensioning, and packaging machinery.
• Participation in Turquality Brand Supporting program.

Supply Chain Management

Climate-Related Risks & Opportunities

Awards & Recognition

• Authorized Economic Operator
• Turquality®
• Supplier of the Year (Floor & Décor)
• Golden medals for Tax Payment and Foreign Exchange Saving

Environmental Metrics

ESG Focus Areas

• Environmental Sustainability
• Social Responsibility
• Corporate Governance

Environmental Achievements

• Prevented direct discharge of process water with wastewater treatment facility; constantly controlled wastewater treatment plant output values.
• Recycled and reused wastes from intermediate processes, minimizing waste disposal.
• Periodically measured emissions from factory chimneys, ensuring compliance with emission limits.
• Obtained GREENGUARD and GREENGUARD GOLD certificates.

Social Achievements

• Donated 2,280 TRY in 2019.
• Maintained a collective labor contract with CIMSE-IS Labour Union.
• Implemented a competency and target-based performance assessment system for white-collar employees.
• Opened Ege Seramik Info Center in Istanbul to showcase products to architects and professionals.

Governance Achievements

• Established Audit Committee and Corporate Governance Committee.
• Complied with mandatory principles in the “Corporate Governance Communiqué”.
• 33.33% female representation on the Board of Directors in 2019.
• Obtained Authorized Economic Operator statute.

Climate Goals & Targets

Environmental Challenges

• Economic recession and variable operating environment.
• Rise in energy prices and increase in cost of imported inputs due to foreign exchange fluctuations.
• Negative impact of economic recession on domestic market.
• High customs duties applied to Chinese ceramic exporters.

Mitigation Strategies

• Cost management and profitability-oriented strategies.
• Accelerated research and product development, especially for export markets.
• Improved technical features of products through R&D projects.
• Developed products suitable for the American market.

Supply Chain Management

Climate-Related Risks & Opportunities

Awards & Recognition

• Award for Board of Directors Empowered with Women
• A' Design Award and Competition 2019
• Turkey's Most Valuable 100 Brands

Environmental Metrics

ESG Focus Areas

• Environmental Sustainability
• Human Resources
• Corporate Governance

Environmental Achievements

• Prevented direct discharge of process water with wastewater production facility; constantly controlled wastewater treatment plant output values; recycled and reused wastes formed in intermediate processes; minimized waste disposal; periodically measured emissions thrown into the atmosphere from factory chimneys and checked for deviation from limit values in Emission Permit; complied with (305/2011/EU) Building Materials Regulation and EN 14411 Harmonized Standard in CE conformity mark activities; received GREENGUARD and GREENGUARD GOLD certificates; completed EPD Project; received SASO Quality Mark certificate; received Incentive Award in Environment Award Competition; received COVID-19 Safe Production Certificate.

Social Achievements

• Provided all hygiene measures to protect employee health during COVID-19 pandemic; maintained efforts to be a preferred corporation for qualified workforce; implemented competency and target-based performance assessment system; established ethical rules for employees; ensured occupational health and safety with Occupational Health and Safety Committee; provided full-time Workplace Health Team services; had a fire engine and trained personnel; maintained respect for labor union membership and collective bargaining rights; ensured continuity in employment; did not employ child labor; provided equal opportunity to employees; implemented KVK policy for personal data protection.

Climate Goals & Targets

Environmental Challenges

• Cost increases due to energy price increases and foreign currency fluctuations; negative impact of COVID-19 pandemic on general manufacturing expenses.

Mitigation Strategies

• Implemented decisions to increase capacity utilization rate to 72%; achieved EBITDA profitability of TL 128,410,462 despite domestic market depression; implemented cost reduction measures; actively used digital promotion tools during COVID-19 pandemic.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Turkish Financial Reporting Standards (TFRS), International Financial Reporting Standards (IFRS)

Certifications: ISO 9001, ISO 14001, ISO/IEC 27001, GREENGUARD, GREENGUARD GOLD, Authorized Economic Operator Statute, Green Squared, COVID-19 Safe Production Certificate, SASO Quality Mark

Third-party Assurance: AS Bağımsız Denetim ve Yeminli Mali Musavirlik A.Ş.

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Environmentally sensitive products; products with improved technical class and surface quality; products with new geometries.

Awards & Recognition

• Incentive Award (Environment Award Competition), Turquality®, GreenGuard, GreenGuard Gold, Green Squared, SASO Quality Mark, COVID-19 Safe Production Certificate

Environmental Metrics

ESG Focus Areas

• Environmental Sustainability
• Occupational Health and Safety
• Social Responsibility

Environmental Achievements

• Prevented direct discharge of process water with wastewater production facility; constantly controlled wastewater treatment plant output values.
• Recycled and put into production wastes formed in intermediate processes; minimized waste disposal.
• Emissions thrown into the atmosphere from factory chimneys are periodically measured and checked against emission permit limit values.

Social Achievements

• Implemented COVID-19 safety measures, verified by TSE.
• Donated TRY 300 to the Turkish Education Foundation.
• Maintained efforts to be a preferred corporation for qualified workforce, encouraging high performance and team spirit.

Governance Achievements

• Established Audit Committee and Corporate Governance Committee.
• Complied with mandatory principles in the Corporate Governance Communiqué.
• Female members in the Board of Directors reached 50%.

Climate Goals & Targets

Environmental Challenges

• Serious increases in energy costs.
• Breakage in supply chains.
• Increases in freight prices.
• Economic fluctuations, increase in exchange rate, and depreciation of the Turkish Lira.
• Difficulties experienced in material supply chains.
• Increases in logistics prices.

Mitigation Strategies

• Managed demands from customers in domestic and international markets with privileged services and strategic decisions.
• New raw material researches and new recipes developed by focusing on R&D studies.
• Accelerated researches to minimize increasing costs and create a higher quality and more sustainable production structure.

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• Fires
• Floods

Sustainable Products & Innovation

• Anti-bacterial products

Awards & Recognition

• Authorized Economic Operator
• Award from Aegean Chamber of Industry
• Award from the Cement, Glass, Ceramics and Soil Products Exporters' Association
• Green Squared
• Turquality®

Environmental Metrics

ESG Focus Areas

• Environmental Sustainability
• Human Resources
• Occupational Health and Safety

Environmental Achievements

• Received Green Squared certificate (first and only in Turkey)
• Renewed GREENGUARD and GREENGUARD GOLD certificates
• Completed EPD Project
• Waste water treatment plant output values are constantly controlled
• Wastes formed in the intermediate processes are recycled and put into production
• Emissions thrown into the atmosphere from the factory chimneys are periodically measured

Social Achievements

• Celebrated 50th anniversary
• Maintained continuous cooperation with machinery and material supply companies
• Participated in various international fairs
• No child labor employed
• Equal opportunity to employees
• Collective labor contract with CIMSEIS Labour Union

Governance Achievements

• Established Audit Committee and Corporate Governance Committee
• Complies with mandatory principles in the “Corporate Governance Communiqué”
• Published 2022 Corporate Governance Compliance Report
• Published 2022 Corporate Governance Information Form

Climate Goals & Targets

Environmental Challenges

• High inflation worldwide, especially in Europe
• Decreased purchasing power
• Russia-Ukraine war impacting raw material imports
• Energy crisis
• Anti-dumping investigation by the European Union Commission
• Increases in energy prices
• Increases in transportation prices
• Disruptions in the supply chain

Mitigation Strategies

• Used domestic sources instead of raw materials from Ukraine
• Searched for alternative recipes and suppliers for raw materials
• Increased energy efficiency and searched for new sources
• Started solar power plant feasibility studies
• Accelerated R&D activities to procure raw materials from locations close to the production area
• Made changes in production recipes to discipline cost increases due to freight

Supply Chain Management

Responsible Procurement

• Search for alternative suppliers for raw materials

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Turkish Financial Reporting Standards (TFRSs)

Certifications: ISO / IEC 27001: 2013 (Information Security Management System), TS EN ISO 9001:2015 (Quality Management System), TS EN ISO 14001:2015 (Environmental Management System), EN ISO 50001 (Energy Management System), Green Squared, GREENGUARD, GREENGUARD GOLD, SASO Quality Mark, Authorized Economic Operator

Third-party Assurance: AS Bağımsız Denetim ve Yeminli Mali Müşavirlik A.Ş.

Awards & Recognition

• Aegean Region Chamber of Industry Award
• Izmir Chamber of Commerce Award
• Cement, Glass, Ceramics and Soil Products Exporters' Association Award
• Istanbul Chamber of Industry Award
• Gold Medal for Foreign Exchange Earning Services
• Brand Finance - Turkey's 100 Most Valuable Brands

Environmental Metrics

ESG Focus Areas

• Environmental Sustainability
• Energy Efficiency
• Recycling
• Waste Reduction
• Human Resources

Environmental Achievements

• Completed solar power plant feasibility studies and started investment activities.
• R&D activities completed to procure raw materials from locations close to the production site, reducing logistics costs.
• Changes in production recipes disciplined cost increases due to freight.
• Wastewater production facility prevents direct discharge of process water; wastewater treatment plant output values are constantly controlled.
• Wastes from intermediate processes are recycled and put into production, minimizing waste disposal.
• Emissions from factory chimneys are periodically measured to ensure compliance with emission limits.
• Environmental Permission Certificate renewed until 22.09.2024.
• EPD (Environmental Product Declaration) Project completed and evaluations made annually by UL Environment.

Social Achievements

• Average number of employees in 2023 was 919.
• Maintained efforts to be a preferred corporation for qualified workforce, encouraging high performance and employee satisfaction.
• Collective labor contract with CIMSE-IS Labour Union.
• Occupational Health and Safety Committee ensures occupational health and safety.
• Workplace Health Team provides full-time services to employees.
• Donations and aids of 200 TL made in 2023.

Governance Achievements

• Established Audit Committee, Corporate Governance Committee, and Early Detection of Risk Committee.
• Complies with mandatory principles in the “Corporate Governance Communiqué”.
• Increased issued capital from 360,000,000 TL to 720,000,000 TL.
• Issued increased shares as registered shares, traded on Borsa Istanbul.

Climate Goals & Targets

Environmental Challenges

• Global economic difficulties, including inflation, foreign exchange increases, and supply chain problems.
• Effects of the 2023 earthquake in Turkey.
• Decreased ceramic tile material exports (39% decrease compared to 2022).
• Unused production capacity and idle product stocks leading to price-based competition.
• Increases in labor costs, raw material costs, and anti-dumping practices negatively impacting ceramic production costs.
• Anti-dumping investigation by the European Union Commission negatively affecting exports to the European market.
• High logistics costs reducing competitiveness of exporting companies.
• Increase in loan interest rates and credit restrictions negatively affecting the domestic market.

Mitigation Strategies

• Started a new modernization investment to increase production efficiency and profitability.
• R&D activities to procure raw materials from locations close to the production site.
• Changes in production recipes to discipline cost increases due to freight.
• Completed solar power plant feasibility studies and started investment activities.
• Intensified architectural service activities to develop retail sales points.
• Developed a marketing strategy to address portfolio characteristics and strengths, communicating through social media and digital channels.

Supply Chain Management

Responsible Procurement

• R&D activities to procure raw materials from locations close to the production site.

Climate-Related Risks & Opportunities

Awards & Recognition

• 41st among the 100 largest industrial enterprises in the Aegean Region (2020)
• 472nd among the 1,500 largest industrial enterprises in Turkey (2022)
• 3rd Company with the Most Exports in "Export Champions of the Year 2022"
• Gold Medal from Izmir Chamber of Commerce (2021-2022)
• Turkey's most valuable brands list