Arçelik production plants are "energy efficient" areas. According to energy audits work with a T.R.Ministry of Energy and Natural Resources Directorate General of Renewable Energy licensed and TÜV certificated energy efficiency consultancy firm, 10 of Arçelik’s domestic production plants achieved a "Platinum" certificate for energy efficiency. Arçelik also first home appliances company to be achieved "Platinum" certificate.
On the other hand, we’re working on to implement the carbon price system in Arçelik. There is no legislation about carbon pricing which is published and implemented in Turkey. Although there is no an explicit carbon price available in Turkey, Arçelik sets emission reduction target and mitigate its emissions by energy efficiency projects, using of combined heat and power plants which are much more efficient way of producing energy and increasing electricity supply generated through renewable energy resources.
Climate Change Related Short and Long Term Targets
Due to achive the strategies mentioned above, Arçelik has defined its targets to combat climate change. Arçelik has defined its targets based on two different approaches: normalised (intensity) based and absolute based.
Arçelik’s normalised (intensity) GHG emissions target and the progresses of the previous years targets related to production are given below:
Our short term target for 2025 was defined as; to reduce total eCO2 emissions of its domestic production plants from 2010 (base year) to 2025 by 100% per sales revenue. In metric tonnes CO2e per unit net total revenue was 0.000036 (tons eCO2/TL) in 2010 base year. . In 2015, we decreased our 1+2 emissions per revised sales revenue 77% compared to our base year (2010) thanks to energy efficiency projects and supply of electricity produced by renewable energy sources.
Our long term target to continue having net zero carbon emission by eliminating its total eCO2 emissions of its domestic production plants until 2040 by implementing new energy efficiency projects (emission reduction projects), using the electricity generated from renewable energy sources and carbon offsets. Arçelik’s first target year to meet this goal is 2025 but, Arçelik also aims to continue this target in the long term.
Arçelik’s absolute GHG emissions target and the progresses of the previous years targets related to production are given below:
Our short term targets are;
to reduce total eCO2 emissions of its domestic production plants from 2010 (base year) to 2020 by 60% by implementing new energy efficiency projects (emission reduction projects) and using the electricity generated from renewable energy sources.
to have net zero carbon emission by eliminating its total eCO2 emissions of its domestic production plants until 2025 by implementing new energy efficiency projects (emission reduction projects), using the electricity generated from renewable energy sources and carbon offsets.
Our long term target is to continue having net zero carbon emission by eliminating its total eCO2 emissions of its domestic production plants until 2040 by implementing new energy efficiency projects (emission reduction projects), using the electricity generated from renewable energy sources and carbon offsets. Arçelik’s first target year to meet this goal is 2025 but, Arçelik also aims to continue this target in the long term.
Thanks to energy efficiency projects (emission reduction projects) and supply of electricity produced by renewable energy sources, we have reduced our absolute GHG emissions around 55,6% by 2016 compared to base year (2010).
Arçelik’s absolute renewable energy target and the progresses of the previous years in production are given below:
The purchasing rate of electricity generated from renewable energy sources which was realized as 0.76% in 2012; 28% in 2013 was increased to the level of 78% in 2014, 82% in 2015 and 88% in 2016.
We are working on possible renewable energy production investments and following up the developments in technology and falling costs of renewable energy. Arçelik plans to invest on solar energy till the end of 2020.
In 2017, Arçelik has supplied 79% of total electricity consumption which is generated by renewable energy sources.
Climate Change Risks and Opportunities Management
In Arçelik, Risk Management System is an integrated multi-disciplinary process. Strategic, operational, physical, financial, reputational and environmental risks and opportunities are covered in Arçelik Risk Management System, to the fulfillment of the short and long term goals. Sustainability Committee evaluates corporate risks and opportunities related to climate change. Corporate climate change risks and opportunities are presented by the Sustainability Committee to Risk Management Committee for providing the integrity of corporate main risks.
The risk and opportunity results, pesented by Risk Management Committee, are monitored and assessed by the Board of Directors, annually.
In Arçelik, risk and opportunity identification, determination and prioritization method has been defined and published in the "GTP-16718 Arçelik Corporate Risk Management Procedure". The prioritization of the risks and opportunities is based on the scoring methodology, defined by Arçelik. Climate change related risks and opportunities are being scored and prioritized by the Sustainability Committee.
Arçelik’s climate change related risks and opportunities have been defined and reported in CDP 2017 report (click here).
Engagement with Policy Makers
The matters we have been engaging directly with policy makers can be found below:
Corporate Position: Support
Details of engagement:
Arçelik supported the "En-Ver (Energy Efficiency) Project” launched in collaboration with T.R.Ministry of Energy and Resources as the corporate sponsor."En-Ver Project” is in cooperation with public, private sector and NGO's, for the purpose of raising awareness for using energy efficiency at all segments of society and sectors.
Arçelik was a partner to Market Transformation of Energy Efficient Appliances (EVÜdP) in Turkey. EVÜdP Project started in 2010 and completed by the end of 2015. UNDP, GEF, T.R. Ministry of Science, Industry and Technology and T.R.Ministry of Energy and Natural Resources Directorate General of Renewable Energy and TÜRKBESD are also members of the Project. The aim was to enhance the strategy and infrastructure of transformation towards more energy efficient household appliances thus reducing domestic electricity consumption and decreasing greenhouse gas emissions.
Arçelik participates and gives comment on the preliminary phase of EU regulations on energy efficiency, labelling and F-Gas by the membership in CECED (European Committee of Domestic Equipment Manufacturers). Arçelik is a member of European Committee of Domestic Equipment, since 2002.
Arçelik has a close relationship with all relevant ministry departments and work together on the preliminary phase of EU regulations to Turkish regulations system. Arçelik took part in the consultation of Turkish energy labelling and eco-design directives, which are published in official journal, dated 22 June 2012.
In order to increase energy efficiency in products and production, joint works with both governmental agencies and universities are performed. Projects are carried out with TÜBİTAK (The Scientific and Technological Research Council of Turkey), energy efficient product and production technologies are developed. Projects are carried out also under European Union 7th Framework Program.Arçelik also has a close relationship with ministry of Science, Industry and Technology and work together on energy efficiency and energy regulations in industrial electric motors.
Arçelik has supported the project Transformations of Energy Efficiently Motors in SMEs supported by UNDP, and leaded the establishment of “Electric Motors Producers Association” in Turkey.
Corporate Position: Support
Details of engagement:
Arçelik takes part in the working group which has been established by the Ministry of Environment and Urban Planning&UNIDO. The group is working on the technical specifications of determining, collecting and disposal of the Ozone Depletion Substances that are banned for usage.
Arçelik became a member of Climate Platform of Turkey which is established as an independent non-profit initiative for providing support for operations to combate climate change,in cooperation with REC(Regional Environmental Center)Turkey and TÜSİAD (Turkish Industry and Business Association).
Arçelik considers climate change as an important risk for world's sustainability, maintains its support to local and international projects executed by business world both in Turkey and in international arena. In this scope,Arçelik signed "The 2 oC Challenge Communiqué" prepared by Corporate Leaders Network (CLN) including Turkey and signed by more than 200 corporate officers operating in various industries in 29 countries.Arçelik gave comments on the draft regulation of Turkish Monitoring and Reporting Directive,in 2012.
Arçelik made a joint study with Ministry of Energy and Natural Resources Directorate General of Energy Affairs to calculate regional diffraction of emission factor to reduce risk of reflection of such uncertainty to GHG emissions.
Arçelik former CEO Mr. Levent Çakıroğlu has been the President of the Turkish Corporate Leaders Group on CC, he represented Turkey in the World Climate Conference (WCC) 2012. Having also participated in the World Climate Summit held in Warsaw 2013.
Arçelik also actively participated in work groups at the Ministry of Environment and Urbanization ahead of the WCC realized in Lima in 2014.
Arçelik participated in the WCC held in Paris and represented Turkey in 2015.
Arçelik represented Turkey in two different panel sessions in COP21. In “Focus on initiatives - Fuel Efficiency and Appliances” session organized by SE4All Initiative of UN and World Bank(WB), Arçelik CCO for Global Sales, Mr. Ragıp Balcıoğlu, attended as a speaker. Mr. Fatih Özkadı, Arçelik Sustainability and Corporate Affairs Director, attended as a speaker in “The Game Changer - Interactive Energy Efficiency Accelerator” titled panel hosted by U4E initiative of UNEP and GEF.
Arçelik CEO, Mr. Hakan Bulgurlu, attended the "Dialogue for Climate Action" event in Vienna in May 2016, which was launched by the World Bank in order to increase dialogue on this matter, within the frame of COP21 goals. Arçelik signed 'The Principles for Dialogue on Climate Action' in scope of this event.
Arçelik made commitments to «Paris Pledge for Action» of Cambridge University and “Responsible corporate engagement policy” of “Road to Paris 2015 Project”.
Arçelik made commitment to Science Based Target Initiative.
Arçelik has attended and represented Turkey as Turkish industial company in COP 22 and COP 23 at both events organized by Ministry of Environment and Urbanization and UNEP.
WEEEs (waste of electrical and electronic equipment), such as refrigerator, air conditioner, etc. may contain ODS which have high global warming potential (GWP). The gases must be properly extracted and treated in an environmental-friendly way. Arçelik made a joint study with the Ministry of Environment and Urban Planning to publish the “WEEE Regulation” in Turkey.
Product Transformational Initiatives
In consideration of product life cycle assessment, GHG emission emitted during to use of the products is more higher.(94-95% consumer use,<4% production and raw material supply,<0.1% product logistics).
Operations aimed at developing product energy efficiency have great importance in terms of ensuring GHG emission mitigation at national and international level, the environmental impact of the products generated in usage phase. Therefore, R&D carries out studies on product energy efficiency development.The share of our environmentalist products, developed with our innovation approach, in production increases with each passing year. By means of the difference we create in this direction, our environmental impact is reduced, while also providing a significant competitive advantage. In this scope, we have allocated resources worth 45,005,703 TL to environmentally friendly product research and development studies in 2016. In 2016, a total of 55,851 GJ energy gain was ensured with energy efficient products produced in all Turkey operations, as against 2015, while a reduction of 4,383 ton CO2e in greenhouse gas emissions was ensured. Also in the reporting period, by means of 19 energy efficiency projects realized within the scope of Romania operation, 14,939 GJ of energy saving and 1,272 ton CO2e of emission reduction was ensured. In the same period, 20 energy efficiency projects were realized in the Russia operation, ensuring 5,228 GJ of energy saving and 393 ton CO2e of emission reduction.
Avoided emissions represent customers’ Scope 2 emissions. The details can be found below:
In 2015, in television production, the share of A++, A+ and A class energy efficient products in total production was realized as 99.8%. The level of energy consumed per unit product that was achieved in 2014 was also preserved in 2015.
Stand-by power consumptions were reduced to levels ranging between 0.12W and 0.29W, ensuring energy savings by 38.6% in stand-by power consumption through this improvement.
By means of the works conducted in Turkey operations in relation to energy efficiency in 2016, the average energy consumption of all the washing machines being manufactured was improved by 5.8% in comparison with 2015. In the same period, an average improvement of 3.5% was achieved in all dryers, 0.03% in all refrigerators, 0.6% in all ovens, and 1.2% in all dishwashers. There was 4.4% increase in the average energy consumption for all produced televisions due to an increase in the average screen size. In this period, 191,204 GJ of savings was achieved in the total annual energy consumption for the products produced at all the plants in Turkey, in comparison with the previous period (2016).
Since 1995, energy consumption of refrigerator, washing machine, dryer, TV, dishwasher, oven are reduced in the ratios of 72%, 84%, 72%, 66%, 52% and 53%.
With EVÜdP (Market Transformation of Energy Efficient Appliances) project, EU ecodesign and energy labelling regulations for washing machine, dishwasher, oven, hob, hood, refrigerator, freezer, air conditioners, dryer and television implemented to Turkey in 2011 at the same time with EU. Under the EU harmonization efforts, non-energy efficient refrigerator, washing machine and dishwasher are banned in 2011. In this way products are placed on the market as of today are 2 times more efficient compared to 2010. Thanks to the regulations put into force, 9 TWh of energy has been saved since 2011. For implementing EU regulations to Turkish legislation; coordination between Science, Industry and Technology Ministry and the producers have created.
Arçelik has become a partner to the United For Efficiency (U4E) Project led by UNEP and GEF. Arçelik supports market transformation towards Energy Efficient Appliances and Equipment globally. In this context, Arçelik supports development of country saving assessments with the transition to energy efficient household refrigerators and freezers at developing countries e.g. the Republic of South Africa and Thailand. Arçelik provides technical assitance and expertise on the development of energy efficiency policies, setting up performance standards, monitoring and verification schemes, test methods and the installation of test facilities for energy efficient refrigerators and gives support to the global action campaign to promote the global transition to energy efficient refrigerators particularly at developing countries. The contribution will take different forms such as technical expertise and market insights to be provided, , at the meetings of the global multi-stakeholder platforms, at technical task forces and high level and expert discussions.
We have developed a “Arçelik Energy Efficient Refrigerators Grouped Project”. It is a voluntary emission reduction Project, because there is not any regulatory emission trading scheme in Turkey and so that there are no allowances allocated or purchased in scope of our Project.
GWP (Global Warming Potential) (100 year) of R134a GWP is 1300, and R600a GWP is 8. GWP of R134a is 162 times higher than GWP of R600a. To calculate GHG emissions reductions, we use grid emission factor as 0.532 ton/kwh and calculation method as "activity data x emission factor".
Arçelik Energy Efficient Refrigerators Grouped ProjectWe commenced basic infrastructure operations to enter voluntary carbon trade in the future period. Since Green Climate Fund steps in 2012 we constantly compile information about future carbon markets. We plan advanced level operations so that our Company will benefit to a maximum level from carbon trade both at home and abroad.
As a start in line with this strategy, we have developed a “Arçelik Energy Efficient Refrigerators Grouped Project”. It is a voluntary emission reduction Project, because there is not any regulatory emission trading scheme in Turkey and so that there are no allowances allocated or purchased in scope of our Project.
For the comprehensive and detailed information about the management of climate change in Arçelik, please see Arçelik Sustainability Report 2017.
Operational Transformational Initiatives
Arçelik A.Ş performs energy management systematically in compliance with ISO 50001 Energy Management System standard. Arçelik had started its efforts to make its energy management system comply with ISO 50001 Energy Management System standard as of March 2012 and has been entitled to receive the certificate upon satisfaction of all requirements of this system at all domestic plants and Sütlüce Head Quarter Campus in Turkey and the plants in Romania, Russia and China. Arçelik was the first company having ISO 50001 Energy Management System certificate, which is based on the sustainable and efficient use of the energy consumed within the scope of activities, in its sector in Turkey.
We have realized 175 energy efficiency projects in our Turkey operations during 2016. Through energy efficiency projects we have actualized in 2016, we achieved 55,851 GJ energy saving and a reduction of 4,383 ton CO2e in our greenhouse gas emissions.
As part of our strategy for combating climate change that we identify in accordance with our corporate responsibilities, we minimize our carbon footprint through energy efficiency practices and renewable energy source use. In 2016, we have reduced our direct greenhouse gas emission approximately by 24%, our indirect greenhouse gas emission by 85%, and our total greenhouse gas emission approximately by 55,6% compared to base year 2010.
With the practice we actualized for the first time in 2012, we continued purchasing energy generated from renewable energy sources in 2015. The purchasing rate of electricity generated from renewable energy sources which was realized as approximately 1% in 2012, 28% in 2013, and 78% in 2014 was increased to the level of %82 in 2015, preventing 83,553 ton CO2e greenhouse gas emission. We have increased the rate of electricity generated from renewable energy sources in our total electricity consumption to the level of 79% in 2017.
Energy audits were carried out by a private consultancy firm in 2015 which is compulsory for factories that have energy consumption over 5000 TOE, according to Energy Efficiency Law and related regulations. Besides, “Energy efficiency internal audit” project was implemented in order to increase the effectiveness of energy efficiency efforts and provide the coordination between all Arçelik plants. With this project, energy audits of 7 Arçelik plant in Turkey was carried out in 2015.
As a result of the efforts made by Arçelik in energy efficiency field, 10 manufacturing plants in total, were awarded with "Platinum" certificate top level in "Energy Efficient Green Factories''.
For our targets and other implementations on operations, please see explanations under “Climate Change Related Targets” subtitle on this page.
Arçelik established two recycling facilities in Bolu and Eskişehir, fulfiling the requirements within the framework of the Regulation for the Control of Waste Electric and Electronic Equipment (WEEE). Arçelik is one and only company in its sector which has its own recycling plants. At Eskişehir facility, refrigerators, coolers, air conditioners are recycled and CFC (chlorofluorocarbon) gases harmful for the ozone layer are collected with a closed system; while at Bolu facility all large white goods, except refrigerators, coolers and air conditioners, as well as small household appliances are recycled. The recycling of old products at the facilities, which were engaged as of 2014 yearend, was also continued in the reporting period. The energy gain achieved through the recycles realized since the facilities first became operative is equivalent to the annual energy generation of 17 of 2.5 MW wind turbines.
For the comprehensive and detailed information about the management of climate change in Arçelik, please see Arçelik Sustainability Report 2017.
Collaboration Activities with Suppliers on Climate Change
In line with its "Respecting The World, Respected Worldwide" vision, Arçelik manages its environmental impacts systematically in order to fulfil the requirements to protect the ecological balance. “Product Life Cycle Assessment” is the key element of Arçelik’s Environmental Compliance Management practices.
Arçelik reduces the environmental impacts of all the processes from production of raw material to disposal of product, complies with all the environmental law and regulations during the life cycle of product and commits this approach with its Environmental Policy.
As a step of life cycle assessment, supply chain is an important tool to complete the cycle.
In this respect, we have started “Arçelik Supplier Footprint Project”. Our aim is to calculate our suppliers' carbon footprint according to IPCC Guideline. With this project, we have prioritized our suppliers according to the proportion of our total spend they represent. 80% of Arçelik’s total spend (183 suppliers) is considered in our engagement.
The Turkish Regulation on Monitoring of GHG emissions has been published in Turkey, first reporting obligation period for industry will start at 2017 for GHG emissions of 2015-2016. Arçelik has been calculating GHG emissions since 2006 and has been certified its GHG emissions according to ISO 14064-1 and IPCC which is verified by an independent body in a "reasonable assurance" level, since 2010. On the other hand, there is no legislation about carbon pricing which is published and implemented in Turkey. Although there is no an explicit carbon price available in Turkey, Arçelik sets emission reduction target and mitigate its emissions by energy efficiency projects, using of combined heat and power plants which are much more efficient way of producing energy, and increasing electricity supply generated through renewable energy resources.
For the next few years, Arçelik plans to implement an internal carbon fee. The model has not been set yet but different alternatives are being evaluated.
1- Each department of Arçelik will contribute a proportional amount to the carbon fund based on their emissions and determined carbon price.
2- Instead of proportional carbon fund, a central funding will be done
By using funds collected from the carbon fee, Arçelik will invest on carbon reduction projects such as energy efficiency projects, renewable energy projects and similar environmental initiatives. Besides creating a fund to support our net zero emission target, behavioural change at Arçelik will also be provided by carbon fee. Arçelik Sustainability Council is responsible for the coordination of Arçelik’s internal carbon pricing.
For the comprehensive and detailed information about the management of climate change in Arçelik, please see Arçelik Sustainability Report 2016.