Being aware of the vital importance of natural ecosystems for all of us, we aim to protect biodiversity through initiatives towards our commitments.

At Arçelik, we recognize biodiversity loss as a one of the global issues which is under pressure from several aspects. We have assessed our biodiversity risk assessment within the scope of our own operations to address our nature-related impacts and dependencies based on emerging frameworks including Science Based Targets for Nature (SBTN) and Taskforce on Nature-related Financial Disclosures.

Our assessment covers industry basis nature-related impacts and dependencies as well as location-based approach. The first step of the assessment includes mapping our business footprint of our own operations to implement location-based approach. The geo-mapping of our manufacturing facilities has been carried out using the Integrated Biodiversity Assessment Tool (IBAT). The locations were assessed based on IUCN Red List of Threatened Species that potentially occur, Protected Areas, Key Biodiversity Areas within 50 km of this site.

The material impacts of our industry have been defined through SBTN's Materiality Screening Tool which is based on ENCORE Exploring Natural Capital Opportunities, Risks and Exposure). We also utilized WWF Biodiversity Risk Filter for industry-based impacts and dependencies. According to the result of our materiality assessment through the screening tool, the pressure categories are indexed higher and rated as material for GHG emissions, water use, water/ soil/solid pollutants, which are categorized under nature related issue areas which are climate change, resource use, pollution, respectively. On the other assessment on the risk tool, water scarcity is the most significant physical risk in terms of water-dependency of our industry. Since the results also show that environmental factors in our industry have impacts on protected areas and key biodiversity areas, we collected all relevant findings to act upon.

The nature-related impacts have been further assessed and our manufacturing facilities have prioritized based on climate change and water use which are found as the most critical nature-related issues in terms of impact. Besides, the nature-related dependency of the manufacturing facilities has been assessed relatively lower. However, water use is an interrelated factor for impact and dependency, since water use can create pressure on ecosystem services, while water use has a dependency for our business to continue without disruptions. Considering Arçelik’s dependency on groundwater across its manufacturing operations, as well as direct surface water withdrawal at certain manufacturing sites, the Company has qualitatively identified nature-related impacts and dependencies associated with water use. In addition, a proximity to high biodiversity of our manufacturing facilities factor is another crucial factor we take into consideration from both nature-related impacts and dependency aspects.

Arçelik applies Mitigation Hierarchy to guide its approach to managing factors that may threaten biodiversity periodically. The pressure on biodiversity stemming from climate change and resource usage is addressed through our long-term sustainability targets which include actions related to climate and water such as our net zero emissions commitment, efforts to manage water withdrawal and initiatives to support water recycling and reuse .Arçelik applies Mitigation Hierarchy through preventing, minimizing, and mitigating factors that threaten biodiversity periodically. 

Arçelik aims to develop initiatives to manage its biodiversity footprint towards its No Net Loss as of 2050 approach especially in selected priority areas such as areas in close proximity to key biodiversity areas. Such actions will include assessing the biodiversity footprint of the area, identifying relevant species and habitat conditions, and designing projects intended to support suitable conditions for species classified as endangered or vulnerable species classified by IUCN Red List or national declarations. With this focus on biodiversity management, we will cooperate with third parties with relevant expertise where necessary.

We prioritized our manufacturing facility in Ulmi, Romania, since Arçelik has a manufacturing facility on 431,369 m2 area that is adjacent to biodiversity-sensitive area, Natura 2000, which is known as Birds Directive Special Protection Area (SPA). This is the only manufacturing facility where we have a border with biodiversity sensitive area. In the region of our manufacturing facility in Ulmi, we have been already required to measure PM10, NO2, and SO2 quarterly under the National Air Quality Act 104/2011. In 2021, Arçelik initiated a roadmap with EPC Consultanţă de Mediu, an environmental consulting company specializing in biodiversity conservation. The assessment indicated that the impact on nature has been found limited within the scope of the study. Based on the findings, three objectives and key strategies have been defined to guide efforts aimed at supporting habitat conditions on the land under Arçelik’s responsibility. We have the ambition to implement actions at the site of Ulmi factory to address pressures and support the natural development of habitats by 2027. 

For a location-based Project in Ulmi, Romania, please refer to below section.

Arçelik identifies its sustainability-related risks and opportunities by following global, regional, and sectoral trends and analyses, climate scenarios and stakeholder feedback. Arçelik defines, quantifies and categorizes its material sustainability-related risks and opportunities in line with International Sustainability Standards Board (ISSB) Framework which encompasses TCFD recommendations. Being a company that places sustainability at the heart of its strategy, it is essential for Arçelik to integrate the risks arising from the climate crisis and other sustainability topics into the enterprise risk management (ERM) system to execute the relevant action plans in line with the corporate sustainability strategy.

Arçelik considers biodiversity within its double materiality analysis as well as enterprise risk assessment. Within the scope of risk assessment, biodiversity loss is addressed to define the term, likelihood, financial impact of the relevant risks and opportunities under Climate-Related Risks and Opportunities. In this regard, overall biodiversity-related risk of Arçelik is identified as long term, unlikely and low financial impact.

For further details, please refer to Arçelik Sustainability Reports.

For more information about our policy, please refer to Arçelik Biodiversity and No Deforestation Policy.

Location-based Project in Ulmi, Romania 

During the stages of the study, the main topics were defining state and benefit indicators in relation to the goals, pressure and response indicators against objectives and strategies, and developing of a biodiversity strategic plan.

The priority species are determined as follows:

• Plant species (Typha minima);

• Aquatic insects (damselflies and dragonflies);

• Grassland species (butterflies, bees, beetles, crickets, grasshoppers);

• Amphibian species (Triturus cristatus, Bombina bombina, Hyla orientalis, Bufotes viridis, Bufo bufo).

• Reptile species (Lacerta agilis, Natrix natrix);

• Aquatic bird species (Charadrius dubius, Egretta garzetta, Anas platyrhynchos, Vanellus vanellus);

• Predatory bird species (Athene noctua, Falco tinnunculus);

• Small mammals (Microtus sp., Erinaceus roumanicus, Nannospalax leucodon, Talpa europaea);

• Medium-sized mammals (Lepus europaeus, Vulpes vulpes);

• Bat species (Pipistrellus nathusii/ kuhlii, Nyctalus noctula, Vespertilio murinus).

Commitment Against Deforestation

We are committed to taking steps to prevent gross deforestation risks linked to our operations by 2050.

Forests play an important role in addressing global challenges, from including climate change, biodiversity loss, and resilience against future disruptions. At Arçelik, we are working to manage and address deforestation related risks within our supply chain. Arçelik’s Biodiversity and No Deforestation Policy covers the activities affecting deforestation along the value chain. As a result of our deforestation assessment, we focused on paper and wood-based packaging materials for our products. Therefore, our assessment covers upstream activities.

We are committed to no gross deforestation from our operations’ activities by 2050. We incorporate the following principles to achieve this goal:

• Continuing to use paper/cardboard/ wooden packaging from certified global third-party certification systems such as Forest Stewardship Council (FSC) or other national schemes under the framework of the Program for the Endorsement of Forest Certification (PEFC) for our products packaging.

• Using recycled cardboard outer boxes for our own product boxes

• Reducing the use of wooden plate in our own product packaging

• Monitoring the supply chain to encourage no deforestation.

• Enabling significant suppliers* to switch to recycled cardboard outer boxes for their products.

*Corresponding to 90% of purchasing volume.

For more information about our policy, please refer to Arçelik Biodiversity and No Deforestation Policy.