Energy Efficiency Law and Regulation on Energy Efficiency in the Use of Energy Resources and Energy

Within the scope of “Energy Efficiency Law” no. 5627 which was promulgated in 2007 and basically aimed to use the energy efficiently, prevent the wastage, minimize the burden of the energy costs on the economy and increase the efficiency in energy use and energy resources for the protection of the environment, Arçelik A.Ş. employs engineers who participated in “Energy Manager Certification Program” carried by an authorized institution or YEGM (General Directorate of Renewable Energy) in its plants with higher energy consumption values than the declared limit.

Many energy efficiency projects are carried out each year under the coordination of the energy managers and production-based energy consumption is continuously reduced. Similarly, as stipulated in the energy efficiency law, Arçelik A.Ş. plants officially declare their energy consumption details in March every year.

Arçelik A.Ş. has been the first company to comply with international directives on environment and energy much earlier than they were integrated in Turkish legislation.

Considering the environmental impacts of the products, energy consumption comes into prominence. In line with EU directives on electrical and electronic household appliances, Arçelik A.Ş. designs and manufactures low energy consuming products. Highly energy efficient products were launched in Turkey much earlier than the said EU eco-design directives were integrated into Turkish legislation.

Arçelik A.Ş. was also the first Turkish household appliances company to produce refrigerators (in 1995) without ozone depleting CFC gases much earlier than 2006, deadline set for Turkey in Montreal Protocol.

Arçelik A.Ş. uses refrigerant gases not harmful to the ozone in all refrigerators produced in its plants. 37 million refrigerators were manufactured in total by the end of 2014 with refrigerant gas (R600a) based on hydrocarbon that is environmentally friendly, not harmful to the ozone and has the lowest impact on the global warming (lowest greenhouse gas impact).

Arçelik A.Ş. prioritizes the energy efficiency in the products and manufactures products more efficient than the most efficient energy class defined in the energy label. It developed 30% more efficient refrigerator than A+++ energy class and put into use the 50% more efficient washing machine than A+++ energy class. It manufactured products 10% more efficient than A+++ energy class in dishwasher and dryer. As a result of the sustainable R&D efforts, it brought an oven design that is 45% more efficient than A energy level.

International Energy Agency (IEA) declared that online electronic devices used throughout the world wastes the electric power for about 80 billion dollars each year. Thanks to the activities reducing the power consumption on the products within the fame of compliance with the regulation related to Standby between 2009-2013, Arçelik A.Ş. made contributions to the country's economy and environment by making saving equivalent to the total energy to be consumed by about 850 thousand A energy class refrigerators in a year.

Arçelik A.Ş., supported Efficient Appliances and Equipment Global Partnership Programme led by UNEP, contributing to the programme for its preparatory phase. UNEP and Arçelik partnership will be the first of its kind for Arçelik, globally. In line with this corporate commitment, Arçelik A.Ş. and Defy Appliances Ltd., Arçelik’s subsidiary in South Africa, will support development of estimates on the benefits and policy status of the transition to energy efficient household refrigerators, particularly in the Republic of South Africa. Arçelik and Defy will also contribute to the development of performance standards, monitoring and verification schemes, test methods and the installation of test facilities for energy efficient refrigerators and give support to the global action campaign to promote the global transition to energy efficient refrigerators.

Adopting the principle of environmental approach through the product’s life cycle, Arçelik A.Ş. will continue to carry out its activities in full compliance with legal regulations concerning the protection of the environment, as it did in the past.

Arçelik A.Ş. makes necessary contributions for combating climate change. The company is a member of the Climate Platform in Turkey and serves as the spokesperson and leader of this organization. Arçelik A.Ş. has signed the “2°C Communiqué” which draws attention to the efforts made for climate change.

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. 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 also 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 represented Turkey at 2 events organized by the Ministry of Environment, Urban Planning and UNEP in COP22 and COP23.

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”.

The most reputable and known environment initiative of the world, CDP reports how the climate change, water and deforestation risks are managed by the companies in a global scale and discloses such information to the public and international investors. Arçelik A.Ş. won "Turkey’s Carbon Disclosure (CDP) Leader" award in 2012 and Arçelik furthered this success by receiving "Climate Performance Leaders in Turkey" award in 2013 within the scope of CDP's activities in Turkey. In 2014, Arçelik entitled to be listed in global "The A List: The CDP Climate Performance Leadership Index 2014". by achieving the A performance score that is the highest degree in CDP. In 2015, for the 4th time Arçelik is ranked among CDP Turkey 2015 Carbon Disclosure Leaders. In 2016 and 2017, Arçelik A.Ş. was entitled to enter the CDP The Global A List CDP Climate Performance Leadership Index.” Hence, it became the first Turkish industrial company ever to be entitled to join the list third time in 2014, 2016 and 2017.

In 2017, Arçelik received the "A performance score" in both CDP Climate and CDP Water and entered to Global A List in both programs, and became one of the 25 companies in the world that achieved this success.

Arçelik A.Ş. has reported to CDP Water this year. Click here to see Arçelik A.Ş. CDP Water Report 2017.

Arçelik A.Ş. CDP Water Report 2018 can be found here.

Click here to see AA1000 verification statement of Arçelik A.Ş. water withdrawal data of Turkey operations in Sustainability Report 2017.

Arçelik listed in Borsa Istanbul Sustainability Index (BIST) for the 4th consecutive year and in the MSCI Global Sustainability Index Series with the highest-grade AAA for the 3rd time.

Closed-loop Production Methods

Arçelik A.Ş. conduct works to reduce water consumption in its production processes, and designs processes focused on the recovery of used water.

In line with this approach Arçelik continuously reduces both water consumption and the amount of water discharged.

With the closed loop systems of cooling towers, chillers etc. in the plants, Arçelik A.Ş. saved approx. 15.8 million m3/year water.

Arçelik aims to fulfil closed-loop approach within all pf its plants.

Restriction of Hazardous Substances

Arçelik A.Ş. follows closely and complies with all related international and national chemical management regulations, directives and standards in line with its Environmental Policy. REACH (Registration, Evaluation, Authorization and Restriction of Chemicals) and ROHS (Restriction of Hazardous Substances in Electrical and Electronic Equipment) are the examples of these regulations.

Arçelik A.Ş. ensures its compliance to chemical regulations and standards via “Arçelik Chemical Compliance Specifications”. All of the suppliers are required to supply materials/components in conformance with the Specifications.

Chemical Management studies related to Restricted/Hazardous Substances are followed and performed by Green Chemistry Coordination Committee which is a sub-group of Arçelik Sustainability Working Groups.

Recycling

As an indicator of the strategy to become a Green Company, Arçelik Group carries out its activities within the framework of “Extended Producer Responsibility” and taking into account the principles of sustainability. In this context, Arçelik Group manages in a structure of reducing the environmental impacts of waste management activities and implementing resource efficiency as the priority principle. With this purpose, Arçelik Group designs its products to evaluate as resource and to return to the nature when the end of their useful lives. Arçelik Group prevents wastes at source when producing its products, if this cannot be prevented minimizes the wastes by implementing the principles of integrated waste management. This is the important step of Arçelik Group’s environmental management strategy.

The products produced by Arçelik Group, becomes waste electrical and electronic equipment (WEEE) when product is in the end of its useful life. Arçelik Group established its own recycling facilities within the scope of Extended Producer Responsibility to encourage evaluating the products as resource and to return products to the nature. Arçelik Group has lead the sector with the launching of WEEE management practices and has been a pioneer.

Exceptional Life Cycle Analysis Policy (Product Impacts)

Arçelik conducts works to increase the efficiency of natural resource use, and realize integrated waste management practices to prevent waste generation at its source. Arçelik consistently increases the efficiency of our practices related to packaging waste management, and continues its works for the recycling of waste products which have completed their lifecycle. Arçelik continuously decreases the water consumption in our production processes through practices based on recycling and reuse, and designs high technology products that pioneer in our industry with regards to water saving. Through its integrated waste management practices, Arçelik increases its efficiency in raw material, material, water and packaging use; and continuously decreases its environmental impact with an approach that prevents waste generation at its source. Through studies we implement in accordance with the principles of reduction, reuse and recycling, Arçelik increases the recycling rate of wastes generated by our production processes, ensures the recycling of products that have completed their lifecycles.

In Arçelik, all environmental aspects and impacts through life cycle of a product are taken into consideration. Especially in production stages that occur at Arçelik plants are analyzed in detail to determine effects on the environment.

Environmental aspects and impacts of the activities in all production stages at Arçelik production plants are determined in detail. Defined aspects are evaluated and prioritized by using Arçelik Environmental Risk Assessment Methodology.

Impacts of processes on environment are classified in 7 categories as;

  • Air pollution

  • Water pollution

  • Soil pollution

  • Raw material consumption

  • GHG effects

  • Noise pollution

  • Odour

As a responsible producer, Arçelik cares about end of life of the products. Products under warranty are brought to Arçelik Reuse Centers to take out their reusable and valuable parts to reuse in the installation stage of production. Addition to this, Arçelik collects the old technology products and treats them into WEEE treatment plants. In Arçelik WEEE plants, reusable parts are separated from the product itself and sent to recycling and recovery centers when non-recyclable parts are sent to disposal. Environmental aspects and impacts of Arçelik Reuse Centers and WEEE plants also determined and evaluated according to Arçelik Environmental Risk Assessment Methodology.

With this, GHG emissions of Arçelik campuses are calculated every year and verified by an independent organization. Thanks to projects in Arçelik production plants, GHG emissions have been reduced around 55,6% in 2016 when compared with based year 2010 (based year for Arçelik GHG emission verifications).

Therefore, environmental impact assessment is performed before new investments.

Environmental Training

The key to enhancing Energy, Emission and Environmental management performance is well-informed employees with a high level of awareness. Our trainings cover not only regular employees but also our interns, subcontractors and employees working for the project period. Orientation trainings given to our employees and interns feature information on issues such as energy, emission and environmental management as well.

Purchasing

Within the framework of sustainable life, environmental criteria are defined for purchasing operations based on suppliers and the materials purchased; and compliance of the suppliers with the determined criteria are controlled.

Environmental compliance of the purchased materials is assured by regularly following industrial developments and integrating legal directives and regulations such as RoHS, WEEE and REACH into purchasing operations.

Environmental performance of the suppliers is evaluated by inspections and audits. The suppliers are encouraged to cooperate with R&D for the supply of materials and components needed for less resource consuming, more environment-friendly and innovative products, and the suppliers are expected to support design projects.

Consumer Services

Within the scope of Consumer Services, the products are monitored through the entire process from sale at the authorized dealer to the installation at the consumer’s place via Central Distribution System. Emission of greenhouse gases is reduced by utilizing ideal number of vehicles with the support of vehicle tracking system.

Also, vehicles with lower emission values are preferred at Authorized Services and Consumer Services for service works and continuous improvement in emission reduction is achieved by replacing vehicles older than 5 years.

When we consider the increasing need for efficient usage of energy, the Commercial Climatization increasingly becomes more significant for Arçelik A.Ş.

Beyond retail sales to end user customers in this area, B2B marketing and service infrastructure for decision makers are needed in professional channels.

To this end, Arçelik Air Condition Academy has been formed to provide theoretical and practical trainings for the sales experts, our personnel as well as our partners that consist of authorized dealers and services who works in after-sales services upon releasing the VRS Multi Ace System air conditions.

Service quality and efficiency have been increased by optimizing job distribution to technical personnel in the field with the use of hand-held computers in authorized services.

For the detailed and comprehensive information about the environmental management in Arçelik, please see Arçelik A.Ş. Sustainability Report 2017.