Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental responsibility
• Social responsibility
• Economic responsibility

Environmental Achievements

• Significant investments to reduce environmental load
• Improving energy efficiency in production
• Minimising production waste dumped at landfill sites
• Product design projects optimizing component material and structure, reducing environmental impact
• Investments in Turkey and the Netherlands to improve process quality and significantly reduce the environmental impact of component production by reducing emissions and waste

Social Achievements

• Developing the personnel’s competence and increasing occupational wellbeing
• Improving the working environment and working conditions as part of the efficiency improvement projects
• Developing engineering and product development operations
• Audits of raw material suppliers focusing on quality, environmental issues and occupational safety
• Investments in Turkey to improve working conditions and environment

Governance Achievements

• Implementing and developing coherent operational models and practices to support efficient business operations and management
• Ensuring that the operators in the supply chain adhere to the required principles of quality and responsibility
• Implementing structural and organizational changes to boost operations and clarify management

Climate Goals & Targets

Environmental Challenges

• Difficult operational environment characterized by economic uncertainty and modest market demand
• Decline in demand in the construction and mining industry
• Fluctuation in demand affecting order and sales figures
• Shrinking business of the Orhangazi plant
• Product mix change and increasing number of new products introduced towards the end of 2013 having a temporarily negative impact on productivity and quality

Mitigation Strategies

• Group-wide efficiency programme aimed at productivity and profitability improvements
• New projects focusing on improving foundries’ utilisation rates, developing processes and increasing profitability
• Improving productivity in operations, making operational structures more efficient, centralizing functions, cutting unnecessary costs and increasing market shares
• Investments in engineering operations, modifying and increasing resources in terms of personnel and tools
• Ongoing improvement projects focusing on improvements and quality of the most challenging products
• Layout changes in the core department and smaller changes in the fettling department
• Improvement projects in melting and sand systems operations

Supply Chain Management

Supplier Audits: Audits of raw material suppliers with the focus on quality, environmental issues and occupational safety

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: ISO 26000

Certifications: ISO 9001, OHSAS 18001

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Economic

Environmental Achievements

• Reduced energy consumption by an average of 900,000 kWh/year over the last 5 years.
• Increased recycling rate from 10% to 54% since 2017.
• 48% of non-hazardous filter dust waste processed as alternative raw materials in cement plants in 2022.
• 59% of total hazardous waste recycled in 2022.

Social Achievements

• Launched the "Bizİyiz" project focusing on employee mental and physical health.
• Implemented 37% of 1264 suggestions from employees through the suggestion system.
• Organized various activities for employees and their children.
• Increased the number of Vocational Education Students from 6 in 2021 to 37 in 2022.

Governance Achievements

• Established Sustainability Committees and subcommittees to monitor and implement sustainability strategies.
• Implemented an Information Security Management System based on ISO 27001.
• No reports received by the Ethics Committee in 2022.

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to the Russo-Ukrainian war and rising raw material prices.
• Global energy crisis leading to increased energy costs.
• Economic challenges in Turkey affecting operational and financial targets.

Mitigation Strategies

• Engaged alternative suppliers to ensure customer satisfaction.
• Invested in capacity utilization, energy efficiency, automation, and occupational health and safety (EUR 33.4 million in 2022).
• Implemented energy efficiency projects (LED lighting, pump optimization, etc.).

Supply Chain Management

Responsible Procurement

• Supplier Code of Ethics and Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI

Certifications: ISO 9001, IATF 16949, ISO 45001, ISO 14001, ISO 50001, ISO 27001

UN Sustainable Development Goals

• SDG 8: Decent Work and Economic Growth
• SDG 9: Industry, Innovation, and Infrastructure
• SDG 12: Responsible Consumption and Production
• SDG 13: Climate Action

The company's initiatives contribute to these goals through responsible production, innovation, energy efficiency, waste management, and community development.

Awards & Recognition

• BTSO - Adding Value to the Economy Award in the Export Category
• OIB - Golden Exporter Award