Climate Change Data

Arçelik A.Ş.

Climate Impact & Sustainability Data (2022, 2023)

Reporting Period: 2022

Environmental Metrics

Renewable Energy Share:65%

ESG Focus Areas

  • Climate Change and Decarbonization
  • Water Management
  • Circular Economy
  • Biodiversity
  • Products that Reduce Environmental Footprint
  • Supporting Society with Equal Opportunities and Inclusion
  • Corporate Volunteerism
  • Community Development and Partnerships
  • Sustainable Economic Growth
  • Business Ethics, Human Rights and Transparency
  • Digital Transformation, R&D and Innovation
  • Consumer Experience, Satisfaction and Communication
  • Sustainable Supply Chain Management
  • Future Fit Culture, Talent & Organizational Management
  • Corporate Governance
  • Product Quality and Safety
  • Occupational Health and Safety

Environmental Achievements

  • Reduced Scope 1-2 GHG emissions by 28%
  • Reduced Scope 3 GHG emissions from the use of sold products by 19%
  • Saved 176,984 m3 of water
  • Achieved 65% green electricity usage in global manufacturing operations
  • 96% waste recycling rate in all manufacturing plants
  • 7,525 tonnes CO2e emissions prevented
  • 94,324 GJ energy saved with Energy Efficiency Projects
  • Opened our first-ever climate-friendly flagship store with platinum-level LEED certification
  • 10.20 MW renewable energy installed capacity

Social Achievements

  • USD 8 million funds transferred to women entrepreneurs
  • Established a new partnership with Water.org to provide 10,000 Kenyans with access to safe water
  • Launched the Climate-Friendly Movement through our İYİ-GE Platform to raise awareness on climate change
  • Global We-inTech program carried out to empower women engineers
  • Beko 100 Women Dealers project increased women dealers to 9%

Governance Achievements

  • Established a global team focusing on diversity, equity and inclusion (DEI)
  • Conducted a global inclusion-specific employee survey with 6,000 employees
  • 128 ethical and social compliance audits conducted with no major human rights issues identified

Climate Goals & Targets

Long-term Goals:
  • Net Zero emissions by 2050
Medium-term Goals:
  • Establish renewable energy systems with 50 MW capacity by 2025
  • Reduce energy consumption per product by 45% in all manufacturing plants by 2025
  • Reduce Scope 1–2 GHG emissions by 30% by 2030
  • Reduce Scope 3 GHG emissions from use of sold products by 15% by 2030
Short-term Goals:
  • Reduce water withdrawal per product by 45% in all manufacturing plants by 2025
  • Increase the water recycling and reuse ratio to 70% in all manufacturing plants by 2025
  • Increase the waste recycling rate to 99% in all manufacturing plants by 2030
  • Increase recycled plastic content to 40% by 2025
  • Increase bio-based material content to 5% by 2025
  • Implement ISO 50001 Energy Management Systems across all manufacturing plants by 2025
  • Reach the target of 450 MW Arçelik-branded PV panel sales per year by 2025

Environmental Challenges

  • Supply chain disruptions
  • Soaring energy prices
  • Global uncertainty and socio-economic instability
Mitigation Strategies
  • Continued work towards net-zero target with greater determination
  • Holistic approach to manufacturing more sustainably and providing consumers with resource-efficient technologies
  • Investing in renewable energy and energy efficiency projects

Supply Chain Management

Supplier Audits: 128 third party ethics audits

Responsible Procurement
  • Arçelik Global Responsible Purchasing Policy
  • Supplier Sustainability Index project

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards, UNGC, UN SDGs, WEPs, IIRC, SASB, TCFD

Certifications: ISO 14001

Third-party Assurance: British Standards Institute (BSI)

UN Sustainable Development Goals

  • SDG 3
  • SDG 4
  • SDG 5
  • SDG 7
  • SDG 8
  • SDG 9
  • SDG 10
  • SDG 12
  • SDG 13
  • SDG 14
  • SDG 17

Our planetary and societal contributions are interconnected with our corporate values and business model.

Sustainable Products & Innovation

  • SaveWater technology

Awards & Recognition

  • Highest-scoring household durables company on the Dow Jones Sustainability Indices
  • The Global 100 Most Sustainable Corporations Ranking of Corporate Knights
  • Real Leaders Top 300 Impact Companies of 2023
  • Bloomberg Gender Equality Index
  • CDP’s annual Supplier Engagement Rating (SER)
  • Borsa Istanbul Sustainability Index (BIST)
  • BIST Sustainability 25 Index
  • FTSE4Good Emerging Market Index
  • Gold EcoVadis Medal
  • Morgan Stanley Capital International Sustainability Index (AAA)

Reporting Period: 2023

Environmental Metrics

Renewable Energy Share:64%
Waste Generated:125,749 tonnes

ESG Focus Areas

  • Climate Action
  • Water Management
  • Waste Management
  • Chemicals Management
  • Biodiversity
  • Product Stewardship
  • Corporate Citizenship
  • Business Ethics and Transparency
  • Future Fit Culture, Talent & Organizational Management
  • Sustainable Supply Chain Management
  • R&D, Innovation and Digital Transformation
  • Product Quality and Safety
  • Customer and Consumer Experience
  • Sustainable Financing

Environmental Achievements

  • Reduced Scope 1-2 GHG emissions by 4%
  • Reduced Scope 3 GHG emissions from use of sold products by 6%
  • 64% green electricity usage in all manufacturing operations
  • 95% waste recycling rate in manufacturing facilities
  • 288,973 m3 water saved and recycled
  • 95,680 GJ energy saved and 6,983 tCO2e prevented with energy efficiency projects
  • 16,543 tonnes of recycled plastic used in products in 2023
  • 2,049 tonnes of material reduction

Social Achievements

  • Reached 503 women entrepreneurs through global-scale entrepreneurship programs
  • Reached 108 women dealers under the Her Business Her Power project
  • Reached 644 women technicians under the 500 Women Technicians Project
  • USD 13.1 Million funds transferred to women entrepreneurs
  • WE-inTech Program in 4 different countries to empower women engineers
  • STEM trainings to girls in Türkiye
  • Served 2.4M meals to 1.2M guests (cumulated), saving 2,100 tonnes of food

Governance Achievements

  • Established Sustainability-Linked Financing Framework
  • Launched Green Bond (EUR 350 Million)
  • 27 substantiated cases out of 243 cases reported through ethics hotline channels
  • Zero grievance reported and resolved on anti-corruption and bribery topics

Climate Goals & Targets

Long-term Goals:
  • Net Zero emissions by 2050
Medium-term Goals:
  • Reduce Scope 1-2 GHG emissions by 30% by 2030
  • Reduce Scope 3 GHG emissions from use of sold products by 15% by 2030
  • Establish renewable energy systems with 50 MW capacity by 2030
  • Increase the water recycling and reuse ratio to 70% by 2030
  • 100% green electricity usage in all manufacturing facilities by 2030
  • Increase the average training hours per employee to 35 hours by 2030
  • Convert 40% of training activities to online platforms by 2025
  • Increase the percentage of women in the total workforce to 35% by 2030
  • Increase the percentage of women in all management positions to 30% by 2030
  • Ensure our suppliers use 100% green electricity by 2025
  • Ensure suppliers exceeding 1,000 ToE obtain the ISO 50001 certificate by 2025
Short-term Goals:
  • Reduce water consumption by 45% by 2025
  • Increase waste recycling rate to 99% by 2025
  • Increase recycled plastic content to 20% in products by 2025
  • Increase bio-based material content to 2.5% in products by 2025
  • Implement ISO 50001 Energy Management Systems across all manufacturing facilities by 2025
  • Reach 225M total reach for healthy living and sustainability awareness by 2025
  • Reach 300M total reach for better future awareness by 2025
  • Serve 4.7M meals and save 2,700 tonnes of food by 2025

Environmental Challenges

  • Geopolitical tensions, economic uncertainties, and climate extremes
  • Supply chain disruptions
  • Water stress in some locations
  • Competition
  • Regulatory amendments
  • Disruptive technologies
  • Natural disasters
  • Climate-related risks
  • Other sustainability-related risks
Mitigation Strategies
  • Science Based Targets Initiative commitment for Net Zero by 2050
  • Investing in renewable energy and energy efficiency
  • Implementing water efficiency and rainwater harvesting initiatives
  • Supplier ESG Program
  • Agile transformation
  • Risk management
  • Strategic planning
  • Green financing
  • Corrective action plans for suppliers

Supply Chain Management

Responsible Procurement
  • Arçelik Global Responsible Purchasing Policy
  • Supplier ESG Program
  • Conflict Minerals Policy
  • Supplier Sustainability Index
  • Business Ethics Audit
  • Corrective action plans

Climate-Related Risks & Opportunities

Physical Risks
  • Natural disasters
Transition Risks
  • Regulatory amendments
  • Carbon pricing
  • CBAM
Opportunities
  • Renewable energy investments
  • Development of energy-efficient products
  • Green financing

Reporting Standards

Frameworks Used: GRI, SASB, TCFD, UNGC, IIRC, TSRS

UN Sustainable Development Goals

  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 12
  • 13
  • 14
  • 17

Detailed in the report through related activities and projects

Sustainable Products & Innovation

  • Solar Hybrid Fridge
  • Energy-efficient appliances

Awards & Recognition

  • Dow Jones Sustainability Indices (highest score in the DHP Household Durables Industry)
  • Corporate Knights’ 2024 Global 100 Index
  • BIST Sustainability Index
  • BIST Sustainability 25 Index
  • S&P Global Corporate Sustainability Assessment (highest score for 5th consecutive year)
  • S&P Sustainability Yearbook (top 1%)
  • CDP A- score for Climate Change and B score for Water Security
  • EcoVadis Gold Medal
  • Refinitiv top 1% ESG-scored companies
  • Türkiye Sustainable Business Awards