Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate Change
• Biodiversity
• Efficient use of natural resources
• Water scarcity
• Occupational health and safety
• Employment
• Supply chain
• Corporate governance
• Health and wellness
• Transparency
• Food waste
• Community health and development
• Responsible Procurement
• Product Safety and Quality
• Responsible Human Resources Management
• Corporate Social Responsibility

Environmental Achievements

• Reduced electricity consumption per square meter of daily sales area by 5.5% (compared to 2013)
• Reduced carbon emissions per square meter of daily sales area by 2.1% (compared to 2015)
• Reduced water consumption per capita by 5% (compared to 2015)
• Recycled 52% of private-label product packaging waste (target 54% for 2017, 60% for 2021)
• Recovered and recycled 12,038 tons of waste wood, paper, metal, plastic, and glass
• Installed natural cooling systems in stores
• Achieved 6% electricity saving per store by covering refrigerated cabinets
• Achieved 8% energy saving per store by replacing old lighting fixtures

Social Achievements

• Provided new jobs to 5,500 people
• Increased number of stores to 1,605 in 73 provinces
• Launched 'Good Living' program for employees and community
• Reached 60,000 families with 'Good Living' activities
• Donated TL 537,416.40 to various charitable foundations and associations
• Provided 19 days of average professional and personal development training to employees
• Reduced lost days due to work accidents by 52.9% (compared to 2015)

Governance Achievements

• Included in the Borsa İstanbul Corporate Governance Index
• Included in the BIST Sustainability Index for three consecutive years
• Listed in the FTSE4Good’s Emerging Markets Index
• Upgraded corporate governance rating to 95.01%
• Implemented Anti-Bribery and Anti-Corruption Policy and e-learning training for 84% of employees
• Conducted 1,234 audits of 79.5% of main suppliers

Climate Goals & Targets

Environmental Challenges

• Increased energy consumption due to warmer summer and colder winter months
• Increased number of stores with M bakery sections
• Supply chain disruptions (not explicitly stated, but implied by the focus on supplier audits and responsible sourcing)

Mitigation Strategies

• Implemented cooling automation, air conditioning automation, and lighting automation systems
• Used variable flow control and high-level automation efficient systems in new and renovated stores
• Used daylight lighting systems and heat insulator dye on store rooftops
• Used motion sensor lighting systems in storage units
• Used natural refrigerants (ammonia, glycol, propylene glycol) in refrigeration systems
• Implemented gas leak detectors and monthly monitoring of gas usage
• Renewed cooling systems in 18 stores
• Optimized logistics routes and used fully loaded trucks
• Used electric vehicles for distribution and online store deliveries
• Implemented a multi-stage study to reduce food waste ('Respect Food' project)

Supply Chain Management

Supplier Audits: 1,234/year (79.5% of main suppliers)

Responsible Procurement

• Responsible Sourcing Policy
• Code of Ethics
• Supplier audits (including ISO 9001, ISO 22000, ISO 14001, OHSAS 18001, SA 8000)
• Product safety audits
• Ethical/social audits
• Monitoring of suppliers’ practices
• Guidance on ways to improve supplier performance

Climate-Related Risks & Opportunities

Physical Risks

• Flooding, snowfall

Transition Risks

• Legislative changes

Opportunities

• Development of energy-efficient products and systems

Reporting Standards

Frameworks Used: GRI Standards: Core option

Certifications: ISO 10002 Customer Satisfaction Management System, ISO 14001 Environmental Management System, TS 18001 Occupational Health and Safety Management System

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Organic products
• Low-calorie products
• Sugar-free products
• Gluten-free products
• Lactose-free products
• Products with reduced sugar, fat, salt, or calories
• Anadolu Lezzetleri products

Awards & Recognition

• CDP Turkey Climate Leaders award
• Turkey’s Lovemarks award (9th time)
• Turkey’s Most Admired Company of Retail Sector award (13th time)
• Supermarket Brand with the Highest Level of Customer Loyalty award
• Employer providing the most jobs to the physically handicapped award
• Most Ethical Companies of Turkey award (2014, 2015, 2016)

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Economic

Environmental Achievements

• Reduced carbon emissions by 26.6 percent per square meter in four years, exceeding the 2023 target.
• Reduced food waste by 17 percent in 2019.

Social Achievements

• Launched Migros Wellbeing Journey project, improving balanced nutrition by 5.2 points.
• Helped provide Family Club members with 250,000 trainings in 92 different fields in two years.
• Increased female manager ratio to 28 percent in 2019.

Governance Achievements

• Corporate Governance Rating Score updated to 9.60 (95.98).
• Listed in the BIST Sustainability Index for six consecutive years.

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to extreme weather events (storms).
• Food waste (one-third of food produced globally is wasted).
• Water stress in 91.5 percent of operational units.

Mitigation Strategies

• Developed alternative sourcing strategies.
• Implemented operational improvements, discounted sales, food donation programs, and technological methods to extend product shelf life to reduce food waste.
• Implemented water efficiency practices and invested in new-generation equipment.
• Insured stores against floods and other natural disasters.

Supply Chain Management

Supplier Audits: 1,075/year (82% of key suppliers)

Responsible Procurement

• Good Agricultural Practices
• SEDEX criteria
• BRC/IFS Global Market
• GC-SEDEX

Climate-Related Risks & Opportunities

Physical Risks

• Changes in precipitation
• Storms
• Floods

Transition Risks

• Changes in legislation
• Changes in consumer behavior

Opportunities

• Development of energy-efficient products and systems.

Reporting Standards

Frameworks Used: GRI Standards: Core Option

Certifications: ISO 14001, ISO 45001

Third-party Assurance: BSI Group Eurasia Certification Services Inc

UN Sustainable Development Goals

• Goal 12.3 (Reduce food waste)
• Goal 7 (Affordable and clean energy)
• Goal 13 (Climate action)
• Goal 6 (Clean water and sanitation)
• Goal 15 (Life on land)

Various initiatives contribute to these goals through waste reduction, energy efficiency, renewable energy adoption, water conservation, and biodiversity protection.

Sustainable Products & Innovation

• Anadolu Lezzetleri products
• Mirasımız Yerel Tohumlar products
• Organic products
• Sustainable seafood products
• Products with reduced sugar, salt, and oil.

Awards & Recognition

• Most Favorite Retailer (Capital Magazine)
• Most Reputable Retail Store Brand Award (Turkey Reputation Academy)
• 7 international awards for Wellbeing Journey project.

Environmental Metrics

ESG Focus Areas

• Climate Change
• Sustainable Agriculture and Food Conservation
• Gender Equality and Equal Opportunities
• Employee Development and Talent Management
• Health and Safety of Employees
• Supporting Healthy Living
• Supporting the Circular Economy
• Transparent and Fast Flow of Product Information
• Innovative Applications
• Creating Sustainable Economic Value
• Responsibility and Awareness Studies

Environmental Achievements

• Exceeded carbon emission reduction target.
• Exceeded electricity consumption reduction target.
• Reduced food disposal rates by 24 percent in two years.
• Reduced water consumption per square meter by 22.9% compared to 2019.
• Reduced CO2 emissions per square meter by 5.2% compared to 2019.
• Reduced CO2 emissions per unit carried in transport by 4% compared to 2018.
• Reduced use of plastic bags by 66% compared to pre-paid sales.
• Used 40,000 MWh of renewable energy.

Social Achievements

• Launched Wellbeing Journey program reaching 2.3 million customers.
• Provided certified training to thousands of women through Family Clubs.
• Implemented Migros Better Future Support Package with various solutions for employees, society, and those in need.
• Established Migros Up platform to support entrepreneurs.
• Increased female executive rate from 28% to 29%.

Governance Achievements

• Signed LEAD Network Europe’s CEO Commitment on equality and inclusion.
• Corporate Governance Rating Score of 9.67 (96.69).

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to the Covid-19 pandemic.
• Precipitation changes causing significant loss due to storms.
• Increased risk of destruction caused by snow, storms, and floods.

Mitigation Strategies

• Implemented remote audits for suppliers.
• Developed various solutions through the Migros Better Future Support Package.
• Increased online training four times compared to the previous year.
• Implemented necessary plans to deliver health support packages to employees affected by Covid-19.
• Insured stores as a precaution against floods and other natural disasters.
• Invested TRY 11.54 million in environmental sustainability management.

Supply Chain Management

Supplier Audits: 621 audits in 2020 (50% of primary suppliers)

Responsible Procurement

• Code of Ethics
• Responsible Sourcing Policy
• Anti-Bribery and Anti-Corruption Policy
• Human Rights and Equal Opportunities Policy
• Supplier audits based on IFS Global Market and GC-Ethical Compliance standards

Climate-Related Risks & Opportunities

Physical Risks

• Precipitation changes
• Floods
• Storms

Transition Risks

• Changes in legislation
• Changes in consumer behavior

Opportunities

• Development of energy-efficient products and systems

Reporting Standards

Frameworks Used: GRI Standards: Core Option

Certifications: ISO 14064-3 Greenhouse Gas Calculation and Verification Standard, ISO 14001, ISO 45001, ISO 9001, ISO 22000, FSSC 22000, ISO 10002, TS OIC SMIIC 1 Halal Certificate

Third-party Assurance: KPMG and BSI Group Eurasia Certification Services Inc

UN Sustainable Development Goals

• Goal 12.3 (Reduce food waste)

Initiatives to reduce food waste throughout the value chain.

Sustainable Products & Innovation

• Sadece Migros’ta products
• M Life products
• Organic products
• Products with geographical indications
• Tazedirekt products

Awards & Recognition

• CDP Turkish Climate Leaders (3 times)
• CDP Turkish Water Leaders (2020)
• Good Life Brand of the retail industry (2nd time)
• Favorite Retail Company (17 times in a row)