Climate Change Short- and Long-Term Strategies
With its vision "Respecting the World, Respected Worldwide", Arçelik reviewed its business strategy by considering climate change.
Arçelik‘s 4th core business strategy is to increase the ability to offer enriching, pioneer, innovative, climate change respected and environmental friendly product, solution and technology to society and customer through product life cycle.
Arçelik’s business strategy management method is explained below:
The highest level of direct responsibility of sustainability and climate change efforts is Sustainability Council (SC). All business strategies and targets are being studied and implemented by Climate Change Coordination Working Group (CCC WG). This WG is responsible to integrate climate change efforts and ensures that all efforts comply to Arçelik’s strategy, policy and legal regulations. This WG collects and reports the information to influence the strategy. The WG meets quarterly.
All business strategies and targets are being studied and implemented by Climate Change Coordination Working Group which consists of Sustainability & Cooperate Affairs Director, Environment and Energy Managers, Environment and Energy Specialists and Production Managers.
This Working Group is responsible to integrate climate change efforts and ensures that all efforts comply with Arçelik’s strategy, policy and legal regulations. This committee collects and reports the information to influence the strategy. The committee meets quarterly.
CCC WG identifies the company’s climate change related risks and opportunities at asset level and reports to SC. SC evaluates and prioritizes asset level corporate risks and opportunities. Company level risks and opportunities are identified by SC. Climate change risks, strategies and influence to business targets are monitored and assessed by SC, biannual.
To conduct awareness;
Arçelik became a member of the Climate Platform in 2011 Arçelik signed the 2˚C Challenge Communique (CC).
Developing solution-oriented international collaborations in line with combating climate change, Arçelik supports steps taken, policies and commitments on this issue. Arçelik has been participating in CDP, the largest climate change initiative in the world since 2012 and shares examples of good practices by attending World Climate Conference regularly since 2011. Arçelik former CEO has been the President of the Turkish Corporate Leaders Group on CC, he represented Turkey in the World Climate Conference (WCC) 2012. Finally, Arçelik attended UN Climate Change Conference COP24 and represented Turkey in 2018.
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 was a partner of "Market Transformation Towards Energy Efficient Appliances” Project to increase awareness for energy efficiency at homes.
Arçelik’s long term business strategies related to climate change are:
To produce environmentally-friendly products by climate change and environment sensitivity, energy efficient production technologies, prioritizing climate change and environment sensitivity in all other activities, contributing to sustainable living by realizing mentioned commitments.
Collaboration with institutions and public enterprises in developing-phase of legal regulations and standards.
Proceeding in these strategies, we focus on;
Enhance energy efficiency of the products beyond regulations with R&D studies,
To promote green product range,
To rise the range of purchasing electricity from renewable energy sources,
To invest on solar energy by the end of 2020,
Generalize clean and sustainable technology in production and green activities in processes,
To implement Arçelik’s target “Net Zero Emission” by 2025 in production in Turkey by 2025.
Arçelik keeps its strategic advantage over competitors by increasingly continue its environmental achievements, such as: Arçelik conducts its business processes in accordance with ISO 14001 EMS since 1994.
Arçelik’s GHG emissions have been verifying and certifying since 2010 and Arçelik was the first in its sector in Turkey.
Arçelik SR 2010 is first approved B(+) report in white goods sector in Turkey. Arçelik’s Sustainability Reports are being complied with GRI G4.
Arçelik’s excellent reputation honoured and awarded by its success in CDP by achieving Disclosure Leadership and Performance Leadership. (For the detailed report of CDP 2017; please click here) (For the detailed report of CDP 2018; please click here)
Arçelik has been participating in CDP, the largest climate change initiative in the world since 2012 and has received top awards every year from CDP as a result of its success in combating climate change. In 2012, 2013, and 2015 the Company received CDP Turkey Disclosure and Performance Leadership Awards and in 2014 and 2016, was listed in the CDP Climate Global A List involving companies with the best performance regarding climate change. In 2017, Arçelik received the “A Performance Score” in both CDP Climate Change and Water Program, entered in the Global A List in both programs and become one of the 25 companies in the world that achieved this success. In 2018, Arçelik ranked among the companies with the highest score in Turkey in both CDP Climate Change and Water Programs and was awarded with CDP Turkey 2018 Climate Leadership.
The most substantial business decisions that have been influenced by the climate change are;
2025 climate change target is to decrease the emissions emitted by the production plants in Turkey to “net-zero emission”.
Increasing electricity supply generated through RE resources until 2020.
Ensuring continuity of the following certificates, ISO 14001&14064-1&50001 and extend the verification of GHG emissions abroad plants.
“Dynamic Routing” practice in logistics to reduce GHG.
R&D investment and expenses for developing green products.
Committing to “Responsible corporate engagement policy” in the scope of “Road to Paris 2015 Project”.
Committing to Science-Based Target Initiative.
GHG emissions data and assurance reports of our production plants can be found in our sustainability reports and web site.
We are 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.
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 50% by 2018 in Turkey operations compared to the base year (2010). We plan to establish renewable energy systems with a total capacity of 6 MWp by the end of 2020.
Engagement with Policy Makers
Arçelik continues full blast to invest in energy-efficient products and develops climate-friendly products that use fewer resources that everyone can access, in accordance with the SDGs. The company continues to support global initiatives to reduce climate change impacts while working with NGOs and government agencies in emerging markets to support the formation of energy efficiency standards and regulations in home appliances.
In this context, Arçelik, as a partner of the United for Efficiency (U4E) Project led by UN Environment Program and GEF, supports the transition to energy-efficient refrigerators in the households and participates regularly at the International Climate Conference. The U4E Project is helping governments develop and implement energy efficiency policies in more than 30 countries in Africa, Asia, and Latin America, working together with the world’s leading companies and financial organizations.
Arçelik has supported the project Transformations of Energy Efficiently Motors in SMEs supported by UNDP and led the establishment of “Electric Motors Producers Association” in Turkey.
Product Transformational Initiatives
In consideration of product life cycle assessment, GHG emission emitted during to use of the products is 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 the national and international level, the environmental impact of the products generated in the usage phase. Therefore, R&D carries out studies on product energy efficiency development. The share of our environmentalist products, developed with our innovative 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.
We have developed a voluntary emission reduction project named “Arçelik Energy Efficient Refrigerators Grouped Project”. Following the verification of 258,000-ton CO2e reduction obtained with the sales of high energy-efficient refrigerators between 2013 and 2018 in line with Energy-Efficient Refrigerators Carbon Finance Project carried out in Turkey, Arçelik is planning to launch this to the market.
Operational Transformational Initiatives
Arçelik designs all business processes within the framework of international product and management standards including ISO 14001 Environmental Management System and ISO 50001 Energy Management System which are integrated with ISO 9001 Quality Management System.
Collaboration Activities with Suppliers on Climate Change
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, the 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.
For the comprehensive and detailed information about the management of climate change in Arçelik, please see Arçelik Sustainability Reports.