2021 Sustainability Report
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Climate Change and Environmental Impact

Continuing our activities in line with World Class Manufacturing (WCM) and ISO 14001 Standard, we have adopted a preventive and proactive approach to environmental risk management, which requires a great number of financial resources. We take measures beyond the requirements of environmental legislation by improving our production system with the WCM methodology; we eliminate pollution by reducing risks. As Tofaş, we keep potential risks under control and act confidently so that the economic effects of possible damages will be diminished.

In 1998, we took an important step as the first factory to receive the automotive industry’s ISO 14001 Environmental Management System certificate. We aim to reduce and, where possible, eliminate environmental damage by having a well-established, sustainable Environmental Management System within the Environmental and Energy Policy framework. Thanks to our dedication to standards in this field, we increased environmental performance and ensured sustainability in production by complying with the relevant regulations.

We carry out our activities with a minimum environmental impact and consider protecting natural resources as one of our fundamental responsibilities. With our integrated approach to the environment, we are committed to controlling and reducing the indirect environmental impacts of our entire value chain and the direct environmental effects resulting from our activities.

At Tofaş, we report environmental issues to the Board of Directors under the responsibility of the Sustainability Committee and Sustainability Working Committee, including the Environment Department.

We believe improving our management infrastructure is essential and effective, mainly to make our environmental performance better. For this reason, we accelerate our decision-making processes by calculating the economic costs associated with environmental risks and allocating financial resources for these costs within the risk management framework. We value the importance of environmental problems and the development of environmental awareness among all our stakeholders and employees through incentives to carry the performance in this field to the future.

As Tofaş, we try to minimize the environmental impact of our logistics activities. Within the scope of sustainability of our logistics operations, we value the areas such as energy use, greenhouse gas emissions, and the use of protective packaging. In selecting service providers, we consider factors such as energy efficiency management systems, carbon footprint verification certificates and emission measurements. We also design alternative sea or rail delivery methods and use low-emission vehicles that meet current environmental criteria. We use procedures to shorten the distance traveled on each trip.

Tofaş continues its activities in compliance with national environmental laws and regulations, and “zero non-compliance” was detected in environmental audits carried out by both legal authorities and stakeholders in 2021. Since 1998, when we received the global ISO 14001 certification, there has been no case of non-compliance.

As Tofaş, our full compliance with all environmental and energy-related legal and other requirements is being audited annually by both legal authorities and their main shareholders, Koç Holding and Stellantis. No significant non-compliance has been detected in the audits carried out to this date, and no environmental criminal sanctions have been imposed on Tofaş to date.

As Tofaş, we deal with climate change in three aspects with an integrated approach: a dimension involving legal regulations such as emission limits, a physical and operational dimension involving issues such as sudden changes in weather conditions, and an economic dimension involving carbon trading. Rapid actions are developed against all kinds of threats that may occur in all these dimensions within the corporate risk management framework. Long-term solutions are offered by using environment-friendly techniques.

Departmental environmental and energy guides are involved in implementing environmental policies and procedures, and ensuring their adoption within the units. All environmental and energy guides attend monthly Environment and Energy Board meetings and organize the dissemination of policies within the department and related training activities.

As Tofaş, we appreciate helping solve environmental problems and raising environmental awareness among our employees and business partners. Within Tofaş Academy, we developed training modules to increase environmental awareness. In 2021, we used digital platforms to provide 74,512 hours of training to 6,128 employees.

In order to reduce our impact on nature with the “Let’s Breathe into the Future” campaign, we donated saplings to “Tema” on behalf of our 1007 colleagues, who act responsibly towards nature by not requesting an agenda in 2022.

We cooperate with non-governmental organizations, associations, and legal authorities to create environmental policies and reduce environmental impacts. In addition to our work with OSD membership and TÜSİAD working group membership, we aim to contribute to the value chain through university collaborations, associations, and partnerships with chambers.