Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate Change
• Energy Efficiency
• Natural Resource and Waste Management
• Biodiversity
• Gender Equality
• Employee Satisfaction and Loyalty
• Talent Management
• Occupational Health and Safety
• Ethical Principles
• Anti-Bribery and Corruption
• Supply Chain Sustainability
• Customer Relations
• Social Investment
• Education
• R&D and Innovation
• Digital Transformation

Environmental Achievements

• Increased renewable energy share to 78% of energy portfolio
• Secured Turkey's first green loan based on sustainability performance
• Vestel Elektronik received Special Award for TPM Achievement and Vestel Beyaz Eşya won Award for Excellence in Consistent TPM Commitment
• Vestel Beyaz Eşya prevented 1,765 tonnes of carbon emissions
• Vestel won an award in the Process category at the European Business Awards for the Environment for its Waste Paint Recycling and Reusing System project
• Zorluteks reuses water in multiple processes, consuming 80l of water per kg of cotton fabric (vs. global average of 120l)
• Meta Nikel implemented a water recovery project aiming to reduce water consumption by 1,800,000 m3 per year
• Zorluteks recovers 40 tonnes of black dye annually
• Planted 145,000 trees as part of the Zero Carbon Footprint Forests Project (Zorlu Enerji) and 150,000 trees as part of the Ülkem için Orman project (Zorlu Textiles Group)

Social Achievements

• Provided scholarships to over 22,500 students through Mehmet Zorlu Foundation
• Launched 21st Century Competencies Training Program for youth
• Supported social innovation platform imece
• Women constitute 32% of all Zorlu Group employees and 49% of Zorlu Holding employees
• Launched corporate volunteering program “Kıvılcımlar”
• Vestel employs the highest number of individuals with disabilities above the legal quota
• Vestel’s Women Technicians Training Program graduated its first cohort
• Organized various events on International Women’s Day and a women’s empowerment themed new year’s fair
• Implemented the “Benim Renkli Sınıfım” project, turning children’s drawings into curtains

Governance Achievements

• Updated Zorlu Holding’s Ethical Principles, covering all stakeholders
• Established an Ethics Committee under the Zorlu Holding Board of Directors
• Established an Ethical Principles Hotline
• Reviewed 11 of 12 reported cases of ethical violations
• Implemented measures against corruption, including termination of employment contracts and legal action

Climate Goals & Targets

Environmental Challenges

• Climate change
• Resource scarcity
• Competition
• Changing customer demands
• Managing risks in a dynamic global environment

Mitigation Strategies

• Investing in renewable energy and energy efficiency technologies
• Implementing sustainable procurement policies
• Developing innovative products and services
• Diversifying investments
• Proactive risk management through scenario planning and stress testing
• Implementing a comprehensive internal control system
• Strengthening stakeholder engagement and communication

Supply Chain Management

Responsible Procurement

• Zorlu Holding Supplier Principles (covering child labor, forced labor, discrimination, humane treatment, remuneration, working hours, occupational health and safety, environment, and ethics)

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards: Core option, UN Global Compact

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

UN Sustainable Development Goals

• Goal 4 (Quality Education)
• Goal 5 (Gender Equality)
• Goal 9 (Industry, Innovation and Infrastructure)
• Goal 10 (Reduced Inequalities)
• Goal 11 (Sustainable Cities and Communities)
• Goal 13 (Climate Action)
• Goal 17 (Partnerships for the Goals)

Various initiatives contribute to these goals through education programs, gender equality initiatives, sustainable production practices, social investment, and community engagement.

Sustainable Products & Innovation

• Energy- and water-efficient household appliances (Vestel)
• Self-Cleaning Roller Blinds and Fabric Curtains (Zorlu Textiles)
• Cool Piques and LED Curtains (Zorlu Textiles)
• Mercury-free LED lighting (Vestel)
• TAÇ reborn beddings produced from recycled materials

Awards & Recognition

• Low Carbon Hero Award (Vestel Beyaz Eşya)
• Special Award for TPM Achievement (Vestel Elektronik)
• Award for Excellence in Consistent TPM Commitment (Vestel Beyaz Eşya)
• Innovation Award (Vestel Beyaz Eşya)
• First Place in Large-Scale Enterprise R&D category (Vestel Beyaz Eşya)
• Gold Award at Edison Awards (WeWALK)
• Best Project Award at IDC Manufacturing Awards (Vestel Elektronik)
• Incentive Award at Efficiency Project Awards (Vestel Elektronik)
• Best Technology-Led Innovation category at Gamechangers Awards (V Hepyeni)
• Community Support Award from ICSC (No Barriers in Zorlu Center)

Environmental Metrics

ESG Focus Areas

• Corporate Governance
• Environmental Performance
• Social Performance
• Smart Life 2030 Vision

Environmental Achievements

• Vestel Beyaz Eşya reduced per-unit power consumption by 9% through energy efficiency projects.
• Korteks conserved 169,000 m3 of water through water recovery and reuse.
• Zorlu Enerji increased EV charging stations 7.5-fold and charging connectors from 54 to 272.
• Zorlu Enerji received the Low Carbon Hero award for ZES and electrip initiatives.

Social Achievements

• Launched intrapreneurship program "Parlak Bi’Fikir", resulting in two new startups.
• Launched corporate volunteering program "Kıvılcımlar", with 1,272 volunteers contributing 4,965 hours.
• Implemented gender equality initiatives under "Eşit Bi’Hayat" strategy.
• Zorlu Center received the Albert Sussman International Social Support Award for accessibility initiatives.

Governance Achievements

• Implemented Ethical Principles training for 3,559 employees.
• Established a Gender Equality Committee and Working Group.
• Conducted risk assessment survey across the Group to improve risk culture.

Climate Goals & Targets

Environmental Challenges

• Global economic uncertainty and complex environmental and social challenges.
• Climate crisis, diminishing natural resources, and increasing inequality.
• Disruptions in global supply chains due to the COVID-19 pandemic.

Mitigation Strategies

• Developed Smart Life 2030 vision for sustainable and stakeholder-oriented business model.
• Implemented risk management strategies, including diversification and contingency planning.
• Established COVID-19 Coordination Task Force to ensure a healthy work environment.
• Prioritized local sourcing to enhance supply chain resilience.

Supply Chain Management

Supplier Audits: 727 environmental audits, 185 social audits

Responsible Procurement

• Zorlu Holding Supplier Principles covering child labor, forced labor, discrimination, humane treatment, remuneration, working hours, occupational health and safety, environment, and ethics.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events, water scarcity

Transition Risks

• Changes in regulations, market shifts towards clean energy

Opportunities

• Investments in low-carbon technologies, renewable energy, and energy efficiency

Reporting Standards

Frameworks Used: GRI Standards: Core option, UN Global Compact

Certifications: ISO 14001 (various subsidiaries), ISO 50001 (various subsidiaries), ISO 14064 (various subsidiaries), ISO 14046 (Vestel Beyaz Eşya)

UN Sustainable Development Goals

• Goal 7 (Affordable and Clean Energy)
• Goal 9 (Industry, Innovation and Infrastructure)
• Goal 10 (Reduced Inequalities)
• Goal 13 (Climate Action)

Initiatives aligned with Smart Life 2030 vision contribute to these goals.

Sustainable Products & Innovation

• Energy- and water-efficient household appliances (Vestel)
• Eco-friendly textiles (Zorlu Textiles)
• Smart building technologies (Zorlu Real Estate)

Awards & Recognition

• Low Carbon Hero award (Zorlu Enerji)
• First Prize in Large-Scale Enterprise Sustainable Production category (Korteks)
• First Prize in 7th Technology Development Zones and R&D Centers Awards (Vestel)
• Efficiency award in Large-Scale Enterprise category (Vestel)
• Gold Medal in event category at 2019 Stevie-International Business Awards (Sónar Istanbul)
• Best Customer Experience award (Vestel Customer Services)
• Excellent Customer Satisfaction Diamond award (Zorlu Enerji)
• First Prize in Employee Participation category at 2019 Sustainable Business Awards (Vestel Customer Services)
• Albert Sussman International Social Support Award (Zorlu Center)

Environmental Metrics

ESG Focus Areas

• Climate Crisis and Transition to a Zero Carbon Economy
• Circular Economy and Waste
• Talent Management
• Responsible Supply Chain
• Digitalization and Consumer Experience
• Customer Satisfaction and Communication
• Products Creating Environmental and Social Benefits
• Equal Opportunities, Diversity and Inclusion
• Corporate Governance

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
• Reduced the quantity of refrigerant per unit product by 2,69% in the refrigerator group, by 4% in the tumble dryer group and by 9.6% in the air-conditioner group year on year.

Social Achievements

• Vestel Customer Services and Vestel Ticaret were selected as “Türkiye’s Best Workplace” by Kincentric
• Increased the share of women in managerial positions to 24%
• A 2% increase in the employment of the disabled
• 20 hours of training per employee per year
• Community investment of TL 27.5 million
• 2,903 hours of volunteer work
• Launched the Domestic Recycling Project

Governance Achievements

• Established the Sustainability Committee
• Increased its S&P Global ESG score by 44% to 65 points in 2022
• 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 geopolitical events and the energy crisis
• Chip shortages
• Talent gap
• Climate risks (transition and physical risks)
• Risks related to circular economy and waste
• Cyber risks
• Financial risks (currency fluctuations, interest rate hikes, cash flow imbalances)

Mitigation Strategies

• Market diversification and strong growth in non-European markets
• Diversified supply chain structure and alternative components developed through R&D
• Proactive wage and benefit adjustments, talent attraction initiatives, and employee development programs
• Projects to reduce greenhouse gas emissions, water use, and reliance on high-risk suppliers
• Cyber threat intelligence management, vulnerability scanning, and employee training
• Proactive balance sheet management, hedging strategies, and effective financial management

Supply Chain Management

Supplier Audits: 228 suppliers audited for Vestel Elektronik in 2022; 37 critical suppliers audited; 17 suppliers underwent business ethics audits

Responsible Procurement

• Supplier Code of Conduct
• Supplier Lifecycle Management (SLC) system
• Social and environmental audits
• Conflict Minerals Reporting Template (CMRT)

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events, water stress

Transition Risks

• Carbon pricing, CBAM, regulatory changes

Opportunities

• Renewable energy, green financing, development of climate-friendly products and services

Reporting Standards

Frameworks Used: GRI, TCFD, UNGC

Certifications: ISO 14001, ISO 45001, ISO 27001, ISO 14064, ISO 14046, ISO 9001, ISO 10002, TS EN ISO 18295-1, TS ISO 29990

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

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

Vestel's initiatives contribute to these goals through renewable energy investments, Industry 4.0 transformation, circular economy practices, gender equality initiatives, employee development programs, and community investment projects.

Sustainable Products & Innovation

• Energy-efficient appliances, water-efficient appliances, products with reduced plastic use, products with recycled materials, products with Daylight technology, products with Vitamod technology

Awards & Recognition

• Türkiye’s 4th most valuable brand; Over 170 awards in various fields; Best Large Stand Award at ISE; Best Supplier of EMEA Award from ADI Global; Silver Award at Learning and Development Awards; Green Dot Industry Award