Tofaş - 2021 Sustainability Report

Climate Management at Tofaş

As Tofaş, we evaluate climate change under sustainability management. Our company’s sustainability and climate crisis-focused strategies are determined and followed by the Sustainability Committee. The Sustainability Working Group reports directly to the Sustainability Committee and is responsible for making strategic decisions in sustainability management.

The CEO has the highest level of responsibility to manage climate-oriented issues closely related to environmental and economic dynamics.

Studies in the field of sustainability are closely followed by the members of the Board of Directors.

We have developed management mechanisms to identify climate-oriented risks most effectively and to plan and implement the necessary actions within the framework of our corporate sustainability strategy. The Board of Directors closely monitors risk management and action plans within the scope of climate change and leads activities in these areas. At the same time, they make performance measurements of related activities and examine whether the determined climate change-oriented targets are reached or not.

As Tofaş, it is our top priority to have a sustainable management model that creates value for all our stakeholders. Sustainability management is one of the main dimensions of our corporate risk management; it is under the Early Detection of Risk and Risk Management Committee, which meets twice a year in line with the strategic targets. All activities carried out in this direction are reported to the Corporate Governance Committee and activities in the field of sustainability, particularly the fight against climate change, are reported to the Board of Directors. In this area, the coordination of the activities executed by the relevant managers, especially the CEO, is carried out by the Sustainability Working Group and reported to the appropriate committees.

The Environment, Health, and Safety (EHS) Manager, who is part of the Sustainability Working Group and leads the Sustainability Committee, manages climate-related risks and opportunities at the operational level. The EHS Manager keeps track of relevant KPIs to ensure successful management in this area.

Incentives for the management of climate-related issues:

Promoted	Incentive Type	Comment
All Employees	Prize money	We have developed a Reward System to promote and implement improvement actions for all our employees. Proposals and improvement actions (Kaizen) regarding energy efficiency and greenhouse gas reduction within the framework of the Tofaş Bid System.
Management	Prize money	Overall sustainability performance, including climate change.
Facility Manager	Prize money	World Class Manufacturing – Energy, Cost Allocation, and Environment Pillars activities and scores. Energy efficiency and related greenhouse gas emission reductions.
Environment, Health, and Safety Manager	Prize money	Defining targets for climate change initiatives in collaboration with energy managers and unit energy management emitters.
Energy Manager	Prize money	Energy Action Plan includes achieving targets for improving energy efficiency and reducing greenhouse gas emissions.