A significant share of the activities carried out by Koç Group companies related to environmental policies, long-term environmental strategy and climate change strategies consists of projects that focus on reducing energy and water intensity, greenhouse gas emission, natural resource consumption and waste disposal. While lowering the impact on the environment and climate, these efforts also help the Group companies achieve operational efficiency, which in turn has a positive effect on costs.
Energy and Emissions Management
Group companies execute emissions reduction initiatives under the Climate Change Strategy. Arçelik, Ford Otosan, Opet, Opet Fuchs, THY Opet, Tofaş, Türk Traktör and Yapı Kredi Bank calculated their greenhouse gas emissions for 2015 in accordance with the ISO 14064-1 Greenhouse Gas Emission Reporting Standard. These figures were later confirmed and certified by independent accredited institutions. Arçelik and Tofaş also confirmed the Scope 3 consumption of their greenhouse gas emissions. In addition to this, GHG verification was completed for Tüpraş Izmit Refinery, which was selected as a pilot facility within the framework of the Partnership for Carbon Market Readiness (PMR) project carried out by the Ministry of Environment and Urban Planning. In addition to this, Arçelik, as a signatory to Science Based Targets, became one of the business leaders who pledged to reduce emissions in manufacturing, based on scientific data.
The overall energy intensity of the Group companies in 2016 was 891.64 GJ/TL million of net income while greenhouse gas emission intensity was 89.16 tons CO2e/TL million of net income. In the energy sector, which has higher energy intensity due to the nature of the industry, these figures stand at 1,647.93 GJ/TL million and 115.64 tons CO2e/TL million. The Group companies operating in non-energy industries have an average energy intensity of 136.56 GJ/TL million and an average greenhouse gas emission intensity of 9.47 tons CO2e/TL million.
Thanks to the energy efficiency initiatives executed by Group companies in accordance with the Long-Term Environmental Strategy, the Group’s consolidated energy efficiency development and greenhouse gas emission reduction performance is rising noticeably. To this end, the energy efficiency projects implemented in 2016 conserved 1.5 million GJ of energy and reduced greenhouse gas emissions by 113,000 tons CO2e. The Group’s energy sector operations, more specifically the initiatives at Tüpraş refineries, account for the lion’s share of this performance. Energy consumption and emission reduction initiatives also play an important role in efficiency projects carried out by Group companies operating in other sectors. In 2016, Group companies operating in non-energy industries reduced 210,000 GJ energy and 113,000 tons CO2e emissions, thanks to these projects.
Energy Efficiency and Greenhouse Gas Emission Reductions via Projects
|Energy efficiency (million GJ)||2.00||1.26||1.50|
(thousand ton CO2e)
Within the scope of energy efficiency projects carried out by Tüpraş saved 92,675 ton CO2e in 2016 with 18 different energy efficiency projects and operational improvements completed in four different refineries. Tüpraş İzmir Refinery Flare Gas Recycling Project also saved 24,900 ton CO2e via recycling waste gases. Other greenhouse gas emission reduction projects, on varying scales, are conducted by Group companies. Heat recycling in cooling plants, heat pump for reducing boiler load and absorptive refrigeration equipment investments in electronic operations at Arçelik are among the greenhouse gas emission reduction projects. These projects helped save 3.7 million kWh of electricity and 330,000 m3 of natural gas, and approximately 2,400 tons of CO2 emissions have been avoided. At Aygaz's terminal management and filling facilities, switching to high-efficiency engines in motor-reducer systems, enabled 153,000 kWh energy reduction, preventing 73,75 tons of CO2e emissions.
Other energy efficiency and greenhouse gas emission reduction programs are common in the Group companies, such as transition to energy efficient lighting systems, daylight utilization, route optimization, intermodal logistics planning applications and fleet preferences.
Water is the source of all life as we know it. Clean water sources, critical to sustain human life, are also a basic input for industry. Ensuring access to freshwater resources has become increasingly important in recent years for various reasons, population growth and particularly, climate change. To this end, a priority area for Group companies, as part of the Group’s environmental strategy, is to reduce freshwater withdrawals by boosting water efficiency in production, recycling and recovery; to lower the stress on resources through resource diversification; to cut the amount of generated wastewater; and to further improve the quality of wastewater. All these parameters are evaluated within the scope of the risk management systems, and performance results are evaluated periodically, at least on an annual basis.
Group companies consumed approximately 40.8 million m3 of freshwater in 2016, corresponding to water consumption intensity of 327.69 m3/TL million of net income. Some 506.4 m3 of water was consumed in the energy industry for each TL 1 million of net income; the corresponding consumption levels were 204.6 m3 in the consumer durables sector, 64.6 m3 in the automotive industry, and 26.4 m3 in the finance sector.
Koç Group Water Consumption (m3)
The share of surface water and underground water resources in the Group’s total freshwater withdrawal went down from 91.1% five years ago to 59.2% in 2016. More than 106.34 million m3 of water was reverted to production through recycling and reuse. As a result, the share of water use that is recovered in production stands at 72.3%. The amount of water recycled and reused in manufacturing was raised by 9.8%, in comparison to the previous year.
Resource Efficiency in Waste Management
Waste management is one of the main pillars of environmental management in Koç Group. Due to its operations in various industries, Koç Group’s priority is to initially reduce waste at its source and to ensure that the remaining wastes are recycled. In this respect, total amount of waste -according to (hazardous, non-hazardous and packaging)- are periodically reported since 2012 through quantitative KPIs by Koç Group companies. Management reports include many aspects such as waste management and minimization projects, the scope and effects of new regulations. Each company collects data on the performance indicators and all company data is gathered at Koç Group Environment Committee level.
In 2016, Koç Group companies generated 48,000 tons of hazardous waste, and 300.000 tons of non-hazardous waste. Furthermore, in Koç Group, the ratio of waste recovery was improved significantly. 95% of total waste in 2016 was recovered, while this rate was 78.6% in 2014.
The most significant reduction in non-hazardous waste stems from environmental-friendly product design and industrial efficiency projects carried out in the production process. In addition, effective waste management in operations and waste reduction in packaging due to reduction in raw material usage helps reducing hazardous waste. Specifications and management procedures for waste companies are initially defined and the companies are systematically assessed. The waste company audits take place in accordance with the documented procedures periodically and waste companies are supported in order to improve their waste management quality.
* Data used in this page cover the companies representing 77% of our Group employees and 82.8% of combined turnover of the Group, as of 2016. Further information may be retrieved from Koç Group Sustainability Reports.