Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Saved around 1.9 million kW electricity thanks to heating, cooling, and lighting automation systems installed in stores.
• Installed zero-waste system infrastructure in headquarters.
• Replaced 68% of gasoline and diesel-powered company cars with a hybrid alternative.
• Installed a Solar Energy Power Plant in Adana Sabancı Business Center with the capacity of 174,931 kWh.

Social Achievements

• Launched TeknoClub program to offer privileged services to customers.
• Continued "Technology for Women" project, with 2,450 women participating in trainings.
• Launched "Technology for Women, Solidarity for All" social solidarity movement.
• Female employee rate in Headquarters reached 40%.

Governance Achievements

• Integrated sustainability into existing strategies.
• Restructured the role of Assistant Manager of Occupational Health & Safety and Environment as the “Sustainability and OHS” for comprehensive and dynamic management of sustainability processes.
• No discrimination case occurred in Teknosa in 2021.
• No breach reports from employees concerning an ethical principle in Teknosa in 2021.

Climate Goals & Targets

Environmental Challenges

• Exchange rate fluctuations and inflationist atmosphere brought along some risks and processes that were difficult to manage.
• Delays in the global supply chain.
• Increasing climate change related risks.

Mitigation Strategies

• Made TL 70 million investment in pioneering initiatives.
• Implemented effective financial risk management.
• Developed alternative sourcing strategies.
• Closely monitor international developments and public regulations related to sustainability.

Supply Chain Management

Responsible Procurement

• Supplier selection is performed based on needs and in consideration of several concepts including quality and diversity.
• Suppliers are expected to carry on their business activities within the frame of the rules to be followed across the value chain by Sabancı Holding and Teknosa.

Climate-Related Risks & Opportunities

Physical Risks

• Flood in stores or logistics center
• Delays in operations due to earthquake, fire, etc.
• High and unexpected temperature increases

Transition Risks

• Difficulties in raw material and product supply due to depletion of natural resources

Opportunities

• Increase in demand for air conditioning products and sales
• Increase in sales of air cleaners
• Increase in environmentally friendly products and services
• Achievement of emission minimization and economic benefit through water and energy saving initiatives

Reporting Standards

Frameworks Used: GRI Standards: Core option, Integrated Reporting Framework of the Value Reporting Foundation (VRF)

Third-party Assurance: PwC Bağımsız Denetim ve Serbest Muhasebeci Mali Müşavirlik A.Ş.

Sustainable Products & Innovation

• 86 white goods and 12 air-conditioners with A+++ energy efficiency class
• 18 white goods with A-energy efficiency class
• Preo and Sigma private label products

Awards & Recognition

• “Women-Friendly Brands Awareness” award
• Diamond award in “Technology Store Chain” category of Şikayetvar A.C.E. Awards
• Award in the “Firsts of Industry” category in Customer Experience Awards of Nice Medya 4. CX Awards Türkiye
• 2 silver awards in the “Best Learning Program” and “Best Use of Employee Source” categories presented by Brandon Hall HCM Excellence Awards
• 1 bronze award in the “Best Unique or Innovative HR Program” category
• Bronze award in “Women Supporting Women in Business Life” category by Stevie Awards Women in Progress program
• “Best Digital Service” award in IMI Conferences Türkiye Call Center Awards
• “Coolest Technology Supermarket of Türkiye” award
• Gold awards in the “Best Omni-Channel Customer Experience” , “Best Digital Transformation-Under 25 Years in Business” and “Customer Experience in the Crisis” categories
• First prize award in “Technology Supermarkets” category and second prize in “Store E-Commerce” category
• “Outstanding Digital Brand of Türkiye” award
• First Prize in “Technology Retailing” and “Anchor Store” categories
• “E-Commerce Transformation of the Year” award
• Gold award in “Technology Supermarkets” category by Social Media Awards and bronze award in “Search Engine Campaign” category

Environmental Metrics

ESG Focus Areas

• Climate Change
• Diversity & Inclusion
• Employee Well-being
• Circular Economy
• Social Contribution
• Digital Transformation
• Responsible Supply Chain
• Governance

Environmental Achievements

• Achieved energy savings of about 3.65 million KW through automation systems in stores.
• Met the entire energy demand of its logistics center and 80 stores from renewable energy sources.
• Eliminated 94 tons of CO2e emissions with a rooftop solar power system at its Adana Sabancı store.
• Switched to highly-energy efficient LED lighting technology in 176 stores.
• Received a B- score (management level) in the CDP Climate Change program, exceeding the industry average.
• Received the Green Office Diploma for its Headquarters from WWF Türkiye.

Social Achievements

• Launched the “Aware of Tomorrow” training project on circular economy and e-waste.
• Created the “Teknosa Memorial Forest” by planting saplings.
• Supported the “Technology for Women” project, training 2,039 women.
• Increased female employee ratio to 41% and female manager ratio to 47% at Headquarters.
• Provided employment opportunities to 54 disabled individuals.
• Increased Net Promoter Score (NPS) by 11 points.

Governance Achievements

• Established a Sustainability Committee to oversee ESG strategy and implementation.
• Implemented effective internal audit and control processes.
• Addressed ethical concerns reported by employees.

Climate Goals & Targets

Environmental Challenges

• Global supply chain disruptions.
• High inflation.
• Russia-Ukraine war.
• Climate crisis.
• Intensifying competition in digital transformation.
• Cyber attacks.
• Compliance with laws and regulations.
• Changes in customer preferences.
• Increase in raw material costs and product availability problems.

Mitigation Strategies

• Proactive precautions and flexible adaptation to change.
• Effective risk management.
• Investing in digital transformation and new technologies.
• Strengthening supply chain resilience.
• Developing sustainability and decarbonization strategies.
• Establishing a crisis management team.
• Diversifying supply chains.
• Expanding the portfolio of sustainable products and services.
• Improving the company’s risk management process.

Supply Chain Management

Supplier Audits: Not specified, but planning to conduct ESG assessment surveys.

Responsible Procurement

• Prioritizing local suppliers (99% of procurement from local suppliers).
• Requiring suppliers to comply with Sabancı Holding and Teknosa rules on environment, human rights, OHS, and business ethics.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather conditions and natural disasters.

Transition Risks

• Regulatory changes, market shifts, emerging laws (carbon pricing).

Opportunities

• Increased demand for energy-efficient products and services.
• Development of renewable energy solutions.

Reporting Standards

Frameworks Used: GRI Universal Standards 2021, Value Reporting Foundation (VRF) Integrated Reporting Framework, UN Sustainable Development Goals (SDGs), Women’s Empowerment Principles (WEPs)

Certifications: LEED Gold for Headquarters, Zero Waste Certificate for Logistics Center

Third-party Assurance: PwC Bağımsız Denetim ve Serbest Muhasebeci Mali Müşavirlik A.Ş. (limited assurance)

UN Sustainable Development Goals

• Multiple SDGs are mentioned throughout the report.

Initiatives contribute to various SDGs, including those related to climate action, gender equality, responsible consumption and production, and decent work and economic growth.

Sustainable Products & Innovation

• Refurbished mobile phones.
• Energy-efficient appliances.
• Preo brand products.

Awards & Recognition

• Numerous awards listed in the report (see 'Our Awards and Achievements' section).

Environmental Metrics

ESG Focus Areas

• Climate Change
• Circular Economy
• Supply Chain Sustainability
• Social Responsibility
• Governance

Environmental Achievements

• Launched a renewed phone program in 2022, achieving 334 million TL in sales.
• Equipped 44 stores with electronic labels in 2023, reducing paper and printing usage.
• Used durable boxes containing 30% recycled plastic instead of cardboard boxes during product transfers.

Social Achievements

• Established a Sustainability Committee and Working Groups in 2023.
• Increased sustainability training hours by 41% (359 hours) in 2023 compared to 2022.
• Increased the proportion of female employees to 79% in 2023.

Governance Achievements

• Established a Sustainability Committee in 2023 reporting directly to the Board of Directors.
• Established Sustainability Working Groups in 2023 focusing on climate crisis combat, social value creation, and sustainable business models.
• Collaborates with various organizations like TÜSİAD, Business World, SKD Turkey, UNGC Turkey, and ERTA.

Climate Goals & Targets

Environmental Challenges

• Carbon pricing mechanisms and emission reduction policies.
• Increase in raw material and product costs due to climate change and supply chain disruptions.
• Regulatory obligations on products and services.
• Physical risks from extreme weather events.
• Transition risks from policy changes, market dynamics, and technological developments.

Mitigation Strategies

• Developing strategies to comply with strict regulations and increase demand for low-carbon products.
• Strengthening the supply chain and investing in energy efficiency projects.
• Developing emergency response plans and rapid recovery strategies for natural disasters.
• Complying with current and future environmental regulations.
• Increasing sustainable investments and reducing dependence on fossil fuels.

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct and Business Ethics
• Regular supplier performance audits
• Supplier sustainability training

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events (floods, storms, heat waves)

Transition Risks

• Carbon pricing mechanisms
• Increase in raw material and product costs
• Regulatory obligations on products and services
• Policy changes
• Market dynamics
• Technological developments

Opportunities

• Changing consumer preferences for sustainable products
• Increased demand for cooling solutions
• Transition to energy-efficient stores and buildings

Reporting Standards

Frameworks Used: SBTi (Science-Based Targets initiative), TCFD (Task Force on Climate-related Financial Disclosures)

Sustainable Products & Innovation

• Renewed phones, tablets, computers, and other electronic products