Sustainability

Arçelik Group gains AA Sustainability Rating

Arçelik Group, one of the leading players in the global home appliances industry and parent company of Beko, has been awarded an AA rating in the MSCI (Morgan Stanley Capital International) Global Sustainability Index Series. This latest accolade reinforces the company’s, ‘Respects the Globe, Respected Globally’ vision which focuses on delivering sustainable efficiency and excellence throughout all its business processes.

The company has obtained an ‘above average’ rating in the environmental categories of ‘electronic waste’, ‘clean technologies’ and the social issue of ‘Supply Chain Labour Standards’. It has also been rated Green (G) in MSCI’s ESG (Environmental, Social and Governance) Impact Monitor.

Hakan Bulgurlu, Arçelik Group CEO, comments: “With our sustainability vision, we strive to improve our performance in the social, environmental and economic fields and innovative processes that generate value for our entire operations. Our corporate policies and strategies are built in line with our sustainability principles, whilst our comprehensive performance tracking is integral to our sustainability goals, which are part of our corporate business aims.”

Bulgurlu continued; “ESG ratings can play a vital role in benchmarking and driving improvement across a wide spectrum of issues: energy efficiency and carbon reduction; occupational health and safety and human rights; broad diversity and the quality of a sustainability strategy.”

He also added that the leading electronic waste recycling facilities, which were established by Arçelik in Eskişehir and Bolu in Turkey, were the main drivers for obtaining the high ratings.

The products and the services of MSCI ESG Research, which is one of the leading providers worldwide in the Environmental, Social and Governance (ESG) ratings, are monitored closely by corporate investors and fund managers.

About MSCI ESG: The MSCI ESG rating is based on a company’s environmental, customer, human rights and society, employee rights and supply chain and governance credentials.

Awards

Arçelik Achieved the Highest Score in the DHP Household Durables Industry in the 2021 S&P Global Corporate Sustainability Assessment

ISTANBUL – (November 15, 2021) – Arçelik A.Ş. (ARCLK: IST, “Arçelik”), the global leading consumer durables and electronics manufacturer, scored 86/100 in the 2021 S&P Global Corporate Sustainability Assessment (CSM) as of November 12, 2021, which evaluates the world’s largest companies and assesses their sustainability performance and environmental, social, and governance (ESG) efforts.

The company also achieved the highest score out of 20 companies assessed in the DHP Household Durables Industry. This announcement highlights Arçelik’s ever-growing commitment to a sustainable future and places the company once again as the benchmark brand in the manufacturing industry. Also, Arçelik has for the fifth year in a row been listed in the Dow Jones Sustainability Indices (DJSI).

This recognition follows Arçelik’s announcement at the 2021 United Nations Climate Change Conference (COP26) that it has re-submitted more ambitious science-based emissions reduction targets for their Scope 1, 2 and 3 GHG emissions, pushing for a 50.4% reduction across all three scopes as part of the company’s commitment to the Paris Agreement goals. This demonstrates that Arçelik understands it has a responsibility to lead the way in energy transformation and a more sustainable future.

Prior to this, Hakan Bulgurlu, CEO of Arçelik joined The World Economic Forum Alliance of CEO Climate Leaders. A group of 70 global chief executives, who are driving cross-sector collaboration to accelerate the transition to a net-zero economy. Arçelik understands that there is more that can still be done and are calling on other businesses to join in the fight and recognise how they can effect change and stop environmental devastation. Arçelik is also one of 45 companies that have been awarded the HRH The Prince of Wales’ Terra Carta Seal in recognition of the company’s commitment to creating a sustainable future.

Commenting on Arçelik’s consistent inclusion in the Dow Jones Sustainability Indices, CEO Hakan Bulgurlu said: “It is a privilege to be included on the DJSI for a fifth year in a row, achieving the highest score in our sector – this recognition is a hugely important accolade for our business. Arçelik’s efforts towards building a more sustainable future are consistently evolving. Following our attendance at COP26, we realise there is still so much more to do, and we are committed to ensuring we are a part of the global solution. As a business, we are always striving to do more to support the fight against climate change and our science-based commitments to reduce our Scope 1, 2 and 3 GHG emissions are a demonstration of that – in addition to joining The World Economic Forum Alliance of CEO Climate Leaders and retaining our place on the DJSI.

Hakan Bulgurlu, CEO of Arçelik

Arçelik's sustainability commitments

• Arçelik, which used 100% green electricity in 2019 for its Turkey and Romania operations, aims to use 100% green electricity in all global production facilities by 2030.

• Arçelik aims to decrease the energy consumption used to produce each product by 45% by 2030 (compared to 2015 baseline in South Africa, Russia, Turkey, Romania, China, Thailand and Pakistan plants).

• Arçelik, Turkey’s first and only industrial company which owns two WEEE (Waste Electrical and Electronic Equipment) Recycling Facilities, achieved 315 GWh energy savings and 6.4 million tons of water savings by replacing old high energy and water consuming products with energy and water efficient products regardless of the brand since 2014.

• The old products collected from the market are being sent to Arçelik WEEE Recycling Facilities where they are recycled.

• The saving generated is equivalent to nearly 39 million households’ daily electricity consumption and 7.9 million households daily water consumption.

About Arçelik's revised science-based targets (still being reviewed by SBTi) and other recognitions

• Arçelik has revised its initial science-based targets, to contribute to the worldwide efforts to limit global warming to 1.5°C, compared to pre-industrial levels. The business has committed to reduce its absolute Scope 1 and Scope 2 emissions, and absolute Scope 3 emissions from the use of its sold products by 50.4% by 2030, compared to the base year of 2018. The Scope 3 is often overlooked by businesses as it requires them to reduce the carbon emissions generated in the entire value chain, including emissions generated from the extraction of raw materials, logistics, transportation, consumer use phase as well as end of life of the products.

• Arçelik has successfully become carbon-neutral in global production plants1 (Scope 1 and 2) in 2019 and 2020.

• Arçelik was selected as the most sustainable white goods company to enter Corporate Knights Global 100 World’s Most Sustainable Companies ranking. Through its leadership position in sustainability and decarbonization roadmap for achieving net zero emissions by 2050, Arçelik became the first and only company from its industry to receive the Terra Carta Seal by HRH Prince of Wales.

About S&P Dow Jones indices and Dow Jones sustainability indices

S&P Dow Jones Indices is the largest global resource for essential index-based concepts, data and research, and home to iconic financial market indicators, such as the S&P 500® and the Dow Jones Industrial Average®. More assets are invested in products based on our indices than products based on indices from any other provider in the world. Since Charles Dow invented the first index in 1884, S&P DJI has been innovating and developing indices across the spectrum of asset classes helping to define the way investors measure and trade the markets.

The DJSI are float-adjusted market capitalization weighted indices that measure the performance of companies selected using environmental, social and governance (ESG) criteria. The DJSI, including the Dow Jones Sustainability World Index (DJSI World), were launched in 1999 as the pioneering series of global sustainability benchmarks available in the market. The index family is comprised of global, regional and country benchmarks. Arçelik has featured in the DJSI since 2017.

The full results and list of DJSI constituents are available at:

https://www.spglobal.com/esg/csa/

For more information about the DJSI methodology, please visit:

https://www.spglobal.com/spdji

About Arçelik

With over 40,000 employees throughout the world, Arçelik's global operations include sales and marketing offices in 48 countries, and 28 production facilities in 9 countries and 12 brands (Arçelik, Beko, Grundig, Blomberg, ElektraBregenz, Arctic, Leisure, Flavel, Defy, Altus, Dawlance, Voltas Beko). As Europe's secondlargest white goods company by market share (based on volumes), Arçelik reached a consolidated turnover of 5 billion Euros in 2020. Arçelik's 30 R&D and Design Centers & Offices across the globe, are home to over 1,700 researchers and hold more than 3,000 international patent applications to date. In 2021, Arçelik achieved the highest score in the DHP Household Durables category for the 3rd year in a row in the Dow Jones Sustainability Index of the S&P Global Corporate Sustainability Assessment. In accordance with PAS 2060 Carbon Neutrality Standard, Arçelik became carbon-neutral in Scope 1 and 2 in global manufacturing in 2019 and 2020 with its own carbon credits. Through its leadership position in sustainability and credible science-based decarbonization roadmap for achieving net zero, Arçelik became the first and only company from its industry to receive the Terra Carta Seal by HRH Prince of Wales. Arçelik’s mission is ‘Respecting the World, Respected Worldwide.’

https://www.arcelikglobal.com/en/

Arçelik-LG A/C joint venture plant in Turkey

Arçelik named as one of the Real Leaders Top 150 Impact Companies of 2021

Arçelik's ongoing commitment to sustainability and impact creation has resulted in the company being ranked 13th on the list.

Istanbul, (January 13, 2021) – Arçelik, parent company to 12 leading home appliance brands including Beko and Grundig, with a footprint in almost 150 countries worldwide has been ranked 13th on The Real Leaders®️ Top 150 Impact Companies of 2021.

The Real Leaders 150 Top Impact Companies Award recognizes organizations that are making a positive social or environmental impact. The key is to seek those companies which can make the world a better place. Adopting sustainability as a business model with its "Respecting the World, Respected Worldwide" vision enables Arçelik to be listed among 150 companies.

Within the framework of its sustainability approach that complies with the UN Sustainable Development Goals (SDGs), Arçelik focuses on the future, the planet, and the needs of people and its business. The company believes that steps need to be taken to go beyond the current habits and behavior models, the way people think now, and everything that is thought to be impossible today.

Arçelik CEO Hakan Bulgurlu said, “We are honored to receive this award and be recognized for our mission to create a positive impact by designing technologies that improve the future. We are named the “Industry Leader” in the Household Durables category for the 2nd year in a row in Dow Jones Sustainability Index 2020 and became carbon-neutral in global production in 2019 and 2020 with our carbon credits. Our 2030 greenhouse gas emissions reduction targets are approved by the Science Based Targets Initiative (SBTi) as in line with the Paris Agreement’s goal. Being among the low-carbon transition corporate leaders, we’re proving our commitment to building a sustainable future by letting science dictate our course of action. We will continue to contribute to the protection of our planet and encourage others to live a more sustainable lifestyle.”