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​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. Furthermore, in 2018, Yapı Kredi joined the CDP Water Program and conducted its first reporting. Arçelik and Tüpraş participated in the panel arranged by the Republic of Turkey Ministry of Environment and Urbanization at COP24 in 2018, in order to share their practices and strategies with other businesses as well as organizations.

The overall energy intensity of the Group companies in 2018 was 391.2 GJ/TL million of net income while greenhouse gas emission intensity was 26.6 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 642.8 GJ/TL million and 43.7tons CO2e/TL million. The Group companies operating in non-energy industries have an average energy intensity of 44.13 GJ/TL million and an average greenhouse gas emission intensity of 3.24 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 2018 conserved 3.9 million GJ of energy and reduced greenhouse gas emissions by 263,493 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.

Energy Savings and Greenhouse Gas Emission Reductions

YearEnergy Savings (million GJ)Reduction in Greenhouse Gas Emissions (thousand ton CO2e)

Within the scope of energy efficiency projects carried out, Arçelik reached 64,890 GJ of energy saving and reduced 6,201 tons of CO2 emissions through 118 different energy efficiency projects. Ford Otosan saved 6,955 GJ in natural gas usage and a reduction of 362.7 tons in CO2 emissions with the Solarwall project. Opet used 526 GJ green electricity produced from the Mersin Terminal Solar Power Plant. Otokoç reached 30% reduction in energy consumption due to LEED Green Office Certificate. Tat Gıda’s efforts for energy efficiency projects have resulted in 17,694 GJ of energy savings and a reduction of 2,365 tons in CO2 emissions. Tofaş reduced its CO2 emissions by 5,383 tons. Tüpraş achieved a 243,666-ton reduction in CO2 emission with its energy efficiency projects.

Water Management
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 38 million m3 of freshwater in 2018, corresponding to water consumption intensity of 149 m3/TL million of net income. Energy industry consumed about 79% of the total water, where automotive industries share was 3%, consumer durables 2% and finance 1%.

Koç Group Water Consumption (m3)

Surface water16,205,61914,449,82217,193,124
Ground water7,842,1778,179,5826,791,670
Municipal water2,820,3912,718,4502,292,479
Treated urban wastewater, rainwater and other sources13,807,37515,768,05211,466,725
Total consumption (m3)40,756,56241,115,90738,019,684

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 2018, Koç Group companies generated 41,881 tons of hazardous waste, and 201,571 tons of non-hazardous waste. Furthermore, in Koç Group, the ratio of waste recovery was improved significantly. 96.2% of total waste in 2018 was recovered, while this rate was 95.9% in 2017 and 94.6 in 2016.

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 74% of our Group employees and 83.5% of combined turnover of the Group, as of 2018. Further information may be retrieved from Koç Group Sustainability Reports.

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