Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environment
• Value Chain
• Innovation
• Employees
• Social Responsibility
• Leadership

Environmental Achievements

• Reduced total carbon emissions by approximately 2% compared to 2014.
• Reduced water usage by 9% and water usage per unit product by 6% compared to 2014.
• Reduced landfill waste by 4%.
• Traveled 170,000 km less compared to 2014, reducing carbon footprint by 185 tons.
• Collaborated with WWF-Turkey on a biodiversity project for preserving the Giresun hazelnut.

Social Achievements

• Increased employee satisfaction from 77% to 75% (Note: There's a discrepancy in the report; 85% is a target, not an achievement).
• Reduced employee turnover rate by 5% in the last two years.
• Improved unionization rate from 74.7% to 98.9%.

Governance Achievements

• Became the first food manufacturing company listed on the Istanbul Stock Exchange (BIST) Sustainability Index.
• Received feedback on ethical issues twelve times, all cases resolved; no corruption or bribery allegations.

Climate Goals & Targets

Environmental Challenges

• Price escalation and maintaining affordable food prices.
• Climate change impacts on agricultural harvest (e.g., deviations in seasonal precipitation, drought).
• Sustainability risks linked to financial risks across the value chain.

Mitigation Strategies

• Sustainable procurement practices.
• Investments in energy efficiency (saving almost one million TRY in energy costs).
• Collaboration with Bahri Dağdaş International Agricultural Research Institution on wheat improvement.
• Sustainable hazelnut farming project with WWF-Turkey.

Supply Chain Management

Supplier Audits: 193 suppliers and 450 warehouses audited in 2015.

Responsible Procurement

• Ülker Bisküvi Value Chain Policy (incorporates social, environmental, and ethical principles).
• Environmental criteria incorporated into supplier audits.
• Support for supplier participation in international certification processes.
• Contractual farming with seed support.

Climate-Related Risks & Opportunities

Physical Risks

• Deviations in seasonal precipitation
• Drought
• Dilution of agricultural lands
• Soil failure

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Development of energy-efficient products
• Renewable energy supplies

Reporting Standards

Frameworks Used: GRI G4 Guidelines, GRI G4 Food Processing Sector Disclosures, SASB Processed Foods guidelines, Accountability AA1000SE Stakeholder Engagement Standard

Certifications: ISO 14001 (most plants), OHSAS 18001, ISO 9001:2008, ISO 22000, BRC Food Safety Standard – Level A, IFS certifications

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Goal 7 (Affordable and Clean Energy)
• Goal 12 (Responsible Consumption and Production)
• Goal 13 (Climate Action)
• Goal 2 (Zero Hunger)

Initiatives aligned with UN Sustainable Development Goals (SDGs) are mentioned throughout the report.

Sustainable Products & Innovation

• Products with fibrous and enriched protein content.

Awards & Recognition

• First place in Turkey and third place in Europe in the Industrial Excellence Award 2015 (Ülker Chocolate Plant).

Environmental Metrics

ESG Focus Areas

• Environment
• Value Chain
• Innovation
• Employees
• Social Responsibility
• Leadership

Environmental Achievements

• Saved 2,502 MWh of energy, equivalent to the annual power consumption of 1,500 households
• Reduced CO2 emissions by 1,000 tons
• Reduced water consumption per unit production by 31.2% compared with 2014
• Recycled and recovered 91% of total waste (13,308 tons)
• Reduced packaging waste significantly (355 tons of plastic, 96 tons of paper, and 10 tons of aluminum less)

Social Achievements

• Reduced regretted loss rate to 1.29%
• Provided sustainability training to 2,500 employees
• Reduced accident frequency rate by 78%
• Maintained employee engagement at 80.4%
• Reduced employee turnover rate to 10.7%
• Reduced saturated fat, salt, and sugar in products by 180 tons, 109 tons, and 16.3 tons respectively

Governance Achievements

• All six reports to the ethics hotline were resolved, including one corruption case and five related to working conditions and employee rights.
• Provided 1,584 person-hours of ethics training covering anti-corruption and anti-bribery

Climate Goals & Targets

Environmental Challenges

• Rising food demand, changing consumer expectations, sustainable raw material supply, and environmental problems
• Climate change and extreme weather conditions
• Limited freshwater resources
• Inadequate waste management
• Packaging waste, especially plastic

Mitigation Strategies

• Embracing zero-waste philosophy
• Implementing energy efficiency measures
• Developing sustainable water management projects
• Implementing circular processes for waste management
• Developing sustainable packaging strategy and policy
• Collaborating with Bahri Dağdaş International Agricultural Research Institute to develop a new wheat variety
• Collaborating with World Cocoa Foundation for sustainable cocoa farming
• Implementing palm oil traceability program

Supply Chain Management

Supplier Audits: 62 suppliers audited for food quality and safety

Responsible Procurement

• Supply Chain Policy based on ILO Conventions, UN Global Compact, and UN Convention on the Rights of the Child
• Supplier self-assessment surveys
• Sustainable sourcing of wheat, cocoa, and hazelnut

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather conditions, drought

Transition Risks

• Regulatory changes, market shifts

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI Standards: Core option, GRI Food Processing Sector Supplement, SASB Processed Foods Guidelines, UN SDGs

Certifications: ISO 9001, ISO 14001, ISO 50001, OHSAS 18001 (transitioning to ISO 45001)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Goal 2: Zero Hunger
• Goal 6: Clean Water and Sanitation
• Goal 7: Affordable and Clean Energy
• Goal 8: Decent Work and Economic Growth
• Goal 9: Industry, Innovation and Infrastructure
• Goal 12: Responsible Consumption and Production
• Goal 13: Climate Action
• Goal 15: Life on Land

Initiatives contributing to sustainable agriculture, responsible resource management, climate action, and social development

Sustainable Products & Innovation

• Altınbaşak Çörekotu Kinoalı Kraker
• Ülker chocolate products under 100 calories
• Hanımeller Kurabiyem
• Saklıköy Milk & Bitter Chocolate

Awards & Recognition

• Good Life Brand award (2019)
• Finalist in Edie Sustainability Awards (2019)

Environmental Metrics

ESG Focus Areas

• Environment
• Value Chain
• Innovation
• Employees
• Social Responsibility
• Leadership

Environmental Achievements

• Achieved a 38.4% reduction in water use per unit production (surpassing the 2024 goal of 30% reduction compared to 2014).
• Carbon emissions have remained unchanged since 2014.
• Recycled 93.5% of waste.
• Reduced the use of plastic in packaging by 268 tonnes and the use of paper by 1,194 tonnes.
• Offset carbon emissions by 26,321 tonnes through I-REC renewable energy carbon credits.
• Reduced energy consumption by 11,921 MWh, saving approximately TRY 7.5 million in energy costs.

Social Achievements

• Launched a series of videos titled “Ülker My Beautiful Country – Nature Is Entrusted to Us” which received 59.6 million views on Facebook and Instagram and 14.5 million views on YouTube.
• Planted 31,000 saplings in 2021, bringing the total to 90,500.
• Reduced fat by 349 tonnes and sugar by 1,318 tonnes across all product categories.
• Provided 235 hours of sustainability training to 106 employees via pladis Academy platform.

Governance Achievements

• Listed in S&P Global’s “Sustainability Yearbook” for the second consecutive year.
• Listed in S&P Global’s ESG 2021 Index, placing in the top three among 37 Turkish companies.
• Shortlisted in four categories at the 2021 edie Sustainability Leaders Awards (Water Management, Waste and Resource Management, Team of the Year, Employee Engagement & Behaviour Change Initiative).

Climate Goals & Targets

Environmental Challenges

• Climate crisis and its impact on the value chain (raw material shortages, water scarcity).
• Plastic pollution and potential new regulations.
• Potential impact of the European Green Deal and CBAM on export markets.

Mitigation Strategies

• Developing a net-zero roadmap and reducing carbon emissions and intensity.
• Developing a sustainable packaging strategy to make all plastic packaging 100% recyclable, reusable, or compostable by 2025.
• Prioritizing local suppliers to reduce logistics-related carbon emissions and ensure raw material supply.

Supply Chain Management

Supplier Audits: 60 supplier and 98 warehouse audits in 2021.

Responsible Procurement

• Prioritizing local suppliers (75% of supplier budget in 2021).
• Supplier risk analysis and audits focusing on social and environmental issues.
• Supplier development programs (training).

Climate-Related Risks & Opportunities

Physical Risks

• Water stress
• Extreme weather events

Transition Risks

• New regulations (CBAM, Green Deal)
• Changes in consumer habits

Opportunities

• Development of energy-efficient products and processes.
• Investments in renewable energy.

Reporting Standards

Frameworks Used: GRI Standards: Core Option, GRI Food Processing Sector Supplement, SASB Processed Foods Industry Standards

Certifications: ISO 14001, ISO 9001, ISO 50001:2018, ISO 45001

Third-party Assurance: Independent limited assurance

UN Sustainable Development Goals

• Goal 7 (Affordable and Clean Energy)
• Goal 12 (Responsible Consumption and Production)
• Goal 13 (Climate Action)
• Goal 2 (Zero Hunger)
• Goal 8 (Decent Work and Economic Growth)
• Goal 15 (Life on Land)

Initiatives related to renewable energy, waste reduction, carbon emissions reduction, sustainable agriculture, employee well-being, and biodiversity protection.

Sustainable Products & Innovation

• Products with reduced sugar, fat, and salt content.
• Portion-control products.
• High-fiber products.

Awards & Recognition

• Inclusion in S&P Global Sustainability Yearbook and ESG Index.
• Shortlisting in edie Sustainability Leaders Awards.
• First prize in Water Management Category at the 8th Sustainable Business Awards.
• Instachamp award for tree planting campaign.