2024 Integrated Annual Report
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A More Sustainable Nature and Environment
I
Water Management
Water is a vital natural resource in our cement and ready-mix concrete production processes, playing a strategic role in ensuring operational continuity. Water scarcity is one of the most significant environmental risks, particularly for the industrial sector, where it can directly disrupt production. Given the high water demand of the cement industry, sustainable water management is a critical priority for Akçansa.
The conservation and efficient use of water resources are among our top priorities to strengthen the long-term resilience of our operations and minimize environmental impact. Accordingly, we assess water-related risks, take actions to reduce consumption, and implement innovative solutions to increase water recovery. Our water management strategy is integrated into our corporate risk management processes and includes concrete actions to ensure the protection of water and marine resources across our operations and supply chain.
The CEO Water Mandate, launched by the United Nations to address global water management challenges that pose risks to industrial sectors, the public sphere, local communities, and ecosystems, aims to drive improvements in corporate water stewardship through collaboration with governments, civil society, and other stakeholders. It also promotes knowledge and experience sharing. As Akçansa, we are proud to be the first company in Türkiye’s building materials sector to sign the CEO Water Mandate—an initiative under the United Nations Global Compact (UNGC). In this regard, we aspire to lead the way in responsible water management among industry players in our country.
Our Water Management Policy
At Akçansa, we are committed to a strong policy for the protection and efficient use of water and marine resources. This policy aims to minimize our environmental impact, ensure the sustainable use of water, and reduce our dependency on water resources. In this context:
Efficient Resource Usage
We aim to reduce water consumption and manage resources responsibly by harvesting rainwater and surface water and implementing recycling practices. In line with our water footprint reduction target, we integrate water recovery systems and digital monitoring technologies into our production operations. At our Çanakkale plant, we commissioned a real-time digital water monitoring system, which we plan to replicate across all cement operations.
Risk and Opportunity Management
We evaluate water-related risks in accordance with the ISO 14001 Environmental Management System and the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD). In the Marmara, North Aegean, and Yeşilırmak basins, we take proactive measures to manage risks such as water stress, drought, and scarcity. Through our “Water Management Plan” and the “Water Master Plan,” which was approved by our Board of Directors in 2024, we are optimizing site-specific water management practices based on local conditions.
Operational Excellence and Responsible Water Stewardship
To improve water efficiency and reduce consumption, we adopt Best Available Techniques (BAT) and apply a life cycle assessment (LCA) approach. We also recycle wastewater from production and evaluate opportunities for reuse. Our long-term roadmap for water management is aligned with the UN Sustainable Development Goals and the principles of the UN Global Compact.
Stakeholder Communication and Transparency
We regularly report our key Environmental, Social, and Governance (ESG) indicators and maintain active communication with local communities, water authorities, and other stakeholders.
Through Neighbor Council meetings and additional sessions held upon stakeholder request, we maintain open dialogue with communities impacted by our operations. Feedback gathered from these interactions plays a pivotal role in shaping and refining our policies.
Actions and Resources for Water and Marine Resource Management
At Akçansa, we take a proactive approach to ensuring the sustainable management of water and marine resources, while making effective use of our available assets. With the implementation of a digital water monitoring system at our Çanakkale plant, we are able to track real-time consumption. We aim to extend this system to all our cement plants by 2026. Additionally, through the use of closed-loop systems, we are increasing water recovery rates, thereby supporting operational efficiency.
At our Ladik plant we have implemented a surface water recycling system, allowing physically treated water to be used as an alternative source in cooling towers. At our Çanakkale plant, we completed the modernization of wastewater treatment systems, significantly improving treatment efficiency. In Büyükçekmece, where the risk of water stress is high, we continue to expand our infrastructure investments to access alternative water sources. Notably, we recover and utilize 81,000 tons of rainwater annually at the Büyükçekmece plant for dedusting purposes.
To ensure the effective execution of our water management strategies, we provide regular training to our on-site teams. These sessions raise awareness about water management technologies and monitoring systems. Financial and technological resources are allocated to projects identified under our Water Master Plan. We conduct risk assessments in line with ISO 14001 Environmental Management System standards and TCFD recommendations, and we keep our action plans continuously updated. By implementing best practices across our operations, we remain committed to reducing water consumption and achieving our sustainable water management objectives.
Impact, Risk and Opportunity Management Related to Water and Marine Resources
At Akçansa, we adopt an integrated approach to identifying, evaluating, and managing risks and opportunities related to water and marine resources. Our risk management system is embedded into our broader corporate risk governance framework, covering environmental, social, and governance (ESG) factors. Plant managers, operations teams, environmental specialists, the risk management team, and the sustainability unit work together to identify, assess, and report risks.
In assessing water-related risks, we leverage international frameworks and tools such as ISO 14001, the WRI Aqueduct Tool, IPCC Climate Projections, Heidelberg Materials’ Risk Management Guidelines, and the Ministry of Agriculture and Forestry’s Sectoral Water Allocation Plans. Scenario analyses on climate-related water risks are conducted in alignment with TCFD recommendations, using RCP 2.6, RCP 4.5, and RCP 8.5 scenarios to assess risks across different time horizons.
To manage these risks effectively, we have developed site-specific Water Management Plans and a company-wide Water Master Plan, covering our three primary cement plants that account for 85% of total water use. Through digital monitoring, we closely track water consumption and take preventive actions to minimize losses and leaks.
Our approach to water resource management involves active collaboration with local communities, regulatory agencies, customers, employees, suppliers, and water service providers. This collaboration strengthens our risk mitigation strategies and helps us capitalize on emerging opportunities.
Akçansa is exposed to different degrees of water stress risks depending on the characteristics of each operational region. Using the World Resources Institute’s Aqueduct Tool, we assessed the level of water stress across our operational sites. The analysis revealed that 8 of our plants are located in high water stress areas (40–80%) and 13 are in extremely high water stress zones (over 80%). In response, we have tailored our water strategies to focus on increasing efficiency, improving water recovery, and enhancing wastewater reuse.
These risks are particularly concentrated in the Marmara, Northern Aegean, and Black Sea regions. As water is a critical input in cement production, we continuously refine our strategies to ensure water availability and optimize consumption. In high-stress regions, we implement projects focused on efficiency, reuse, and water recovery systems.
Sağa kaydırarak tablonun devamını görebilirsiniz.
| Water Risks | Term / Probability / Size | Financial Impact Channel | Risk Description | Risk Impact | Risk Response Strategy | Financial Materiality |
Risk Type | Term | Increased indirect (operating) costs | Based on our climate projections and scenario analyses, the Marmara Basin is expected to experience moderate drought stress in the short term, escalating to high or extreme levels over the long term. Additionally, the region is already classified as a high water stress area. These factors may result in insufficient water supply, posing a significant water scarcity risk for our Büyükçekmece plant. If current methods prove inadequate to meet water demand, securing alternative water sources will become necessary, leading to increased operational costs. Similarly, the Northern Aegean region, where our Çanakkale plant is located, is also vulnerable to water stress and drought risks. While water costs are currently nonexistent at our Çanakkale and Ladik plants, potential future pricing policies could introduce additional financial burdens in these areas. | Cost increases that Akçansa may face in the future have been evaluated using a base scenario (comparing 2022 price levels with projected future volumes). For example, significant cost increases are expected in Çanakkale due to rising water stress. However, since water usage in Büyükçekmece is already subject to charges, the plant is expected to be relatively less impacted by rising water costs. Even under pessimistic climate scenarios, the cost increase in Ladik is not expected to reach substantial levels. | To mitigate water stress and related risks, Akçansa is implementing proactive initiatives to manage water stress across operations.The company is committed to lowering water consumption to enhance operational resilience in the future. Through Water Master Plans, covering the three cement plants that account for 85% of total water consumption, water stress risks are being effectively managed. In addition, industrial symbiosis practices are being adopted to minimize the potential impacts of water stress. | TSRS+ |
Risk Type | Term | Negative impact on the company's assets | According to the quantitative risk assessment conducted in 2022 using the Munich Re Location Risk Intelligence tool, analyses based on RCP 2.6, RCP 4.5, and RCP 8.5 scenarios across different time horizons indicate that 25% of our plants are exposed to medium to high flood risk in the long term. The Büyükçekmece plant, along with several terminals, ports, ready-mix concrete, and aggregate plants located in the Marmara Basin, are classified as having moderate flash flood risk. Primary expected impacts include production and operational disruptions, as well as physical damage to plants and assets. In such scenarios, production downtime could lead to revenue losses. | The flash flood risk associated with the Büyükçekmece plant and other plants in the Marmara Basin represents a potential medium- to long-term challenge for Akçansa in terms of financial stability, operational performance, and cash flow management. Flash flood events may cause physical damage to infrastructure and halt production, resulting in reduced output and lost revenue. Moreover, the substantial costs of repairing such damage could exert financial pressure on profitability. In the event of recurrent or severe flooding, additional capital expenditure may be required to enhance infrastructure resilience. These risks could affect revenue, capital expenditures (tangible and intangible), and operating expenses in future reporting periods. | Potential flood and flow risks are integrated into our corporate risk management framework. The primary financial cost of managing these risks stems from insurance premiums, which are designed to cover physical damage and associated indirect losses. Our principal strategy for mitigating flash flood risks is to ensure comprehensive insurance coverage for all operational plants. Additionally, in 2022, we initiated the establishment of a Business Continuity Management System. As part of this process, we developed and implemented emergency response plans, crisis management protocols, and business continuity procedures across our operations. The Sustainability Committee also plays an active role in setting sustainability targets, guiding projects, and embedding risk mitigation strategies into company-wide practices. | TSRS+ |
The risks we have identified related to sea level rise are addressed under the Climate Change section.
For detailed information, please refer to the Climate Change section of the report.
Water Stress Scenarios
We conducted a comprehensive water stress scenario analysis covering all our product groups and integrated cement plants. According to this assessment, irregularities in precipitation patterns caused by climate change—particularly prolonged dry periods and increased water demand—are identified as significant risk factors that may impact our operations. Our Çanakkale and Büyükçekmece plants are situated in regions with a high likelihood of experiencing water stress. Growing water scarcity may lead to disruptions in our production processes and cause a notable increase in water access costs.
In the <2°C scenario, tighter water management policies may encourage the adoption of more sustainable water use strategies. However, this could also result in increased water access costs and more stringent regulatory restrictions. Conversely, in the 3.5–4°C scenario, water resource depletion may become more severe, with prolonged droughts potentially causing operational disruptions.
Our analysis shows that water scarcity could exert considerable pressure on production efficiency—particularly at our Çanakkale plant. While the Çanakkale region currently experiences less water stress compared to other regions, the plant's high production capacity makes it the most vulnerable to potential revenue losses linked to water stress. At our Büyükçekmece plant, rising water prices and limited resource availability are expected to increase operating costs. Although there are currently no major risks foreseen at our Ladik plant, future changes in regional water management policies may also pose challenges for this site.
In light of these findings, we continue to implement actions aligned with our Water Master Plans to enhance our resilience to water stress.
For more detailed information about our water management practices, please refer to the Water Management section of this report.
Sağa kaydırarak tablonun devamını görebilirsiniz.
| Water Opportunities | Term / Probability / Size | Financial Impact Channel | Opportunity Description | Opportunity Impact | Opportunity Evaluation Strategy |
Opportunity Type | Term | Declining Direct Costs | The long-term increase in water scarcity presents a significant risk to operational costs, especially for industries with high water usage. However, this challenge also creates a short-term opportunity for companies implementing water efficiency and conservation measures. At Akçansa, reducing freshwater withdrawal can ease the financial pressures linked to water scarcity, while boosting our operational resilience. To this end, our Water Management Plan is being executed to optimize water usage. The plan involves reducing reliance on freshwater sources, increasing water efficiency, and promoting the reuse of rainwater and treated wastewater. The Water Master Plan ensures that we are well-prepared for future water-related risks. | Cost savings generated through our water efficiency efforts help improve our financial flexibility, offering a competitive advantage and supporting capital allocation. These efforts also strengthen our margins and improve our positioning in a sector where sustainability and resource efficiency are becoming increasingly critical. In 2024, we plan to join the CEO Water Mandate, further reinforcing our commitments to water stewardship and expanding the scope of our efficiency initiatives. In the short term, these improvements are expected to support our operational sustainability, reduce costs at plants facing high water prices, and contribute to long-term resilience. The financial impact of enhanced water efficiency and recycling is estimated to account for approximately 0.06% of our annual revenue. | Although long-term water scarcity is expected to drive up operational costs, we see short-term opportunities in reducing consumption by applying water efficiency measures. We view this opportunity as a strategic advantage, enabling our operations to continue with lower water costs. This positions us more competitively while improving resource management. Any savings achieved are considered strategically important, as they enhance profitability and facilitate more effective capital planning. |
Opportunity Type | Term | Revenue Growth Driven by Increasing Demand for Products and Services | Ensuring the continuity of sales of newly developed products aimed at mitigating the effects of extreme climate events represents a key opportunity for Akçansa. Products such as water-permeable concrete and high-strength concrete are particularly effective in helping prevent soil erosion during extreme weather events such as floods. Moreover, as climate change increases water-related risks, the demand for specialized construction materials that enhance infrastructure resilience is expected to rise. | The sales of our innovative products designed to mitigate the effects of extreme weather allow us to capitalize on growth opportunities in the specialized construction materials market. As demand for durable solutions grows, this trend is expected to improve our financial performance by supporting revenue growth and strengthening our market position. By diversifying our product portfolio, we also aim to enhance our financial resilience and reduce exposure to market volatility. Steady sales of these innovative products will help stabilize our cash flows and support our long-term strategic goals. In 2024, revenue from sustainable products and services accounted for 33.11% of our total sales. Our goal is for sustainable ready-mix concrete and cement products to represent 75% of category sales by 2030, contributing significantly to our financial sustainability. | With the increasing emphasis on climate adaptation and the rising demand for products that help mitigate the effects of extreme climate events, we anticipate sustained interest in resilient construction solutions. We consider this a strategic opportunity to expand our market share and strengthen our long-term financial stability. Ensuring the success of newly developed products is essential to enhancing profitability and capitalizing on market trends. Products such as water-permeable and high-strength concrete are expected to play a critical role in meeting these demands and are positioned as key products in our sustainability-driven portfolio. |
Metrics and Targets
To protect water and marine resources and enhance our water management performance, our primary goal is to reduce freshwater consumption. In line with this objective, we aim to reduce our total water withdrawal per ton of production by 20% by 2030, using 2022 as the baseline year. The reduction rate, which stood at 6% in 2023, increased to 15% in 2024.
In 2024, a total of 2.2 million m³ of water was withdrawn, approximately 2.1 million m³ of which came from areas experiencing high or very high water stress. Compared to the previous year, total water withdrawal decreased by approximately 10%, while withdrawal from high water stress areas declined by 11%. Approximately 1.7 million m³ of water was reused in processes. As a result of our ongoing water recovery efforts, our water reuse rate reached 90% in 2024.
In 2024, our freshwater withdrawal decreased by 16% compared to the previous year and by 18% compared to 2022, amounting to 1.7 million m³. In accordance with international standards, we define freshwater as water with a total dissolved solids (TDS) concentration of 1,000 mg/L or less.
Sağa kaydırarak tablonun devamını görebilirsiniz.
| Water Withdrawal (m³) | 2022 | 2023 | 2024 |
Mains Water | 75,506 | 44,146 | 52,602 |
Surface Water | 2,488 | - | - |
Groundwater (Well Water) | 2,021,002 | 2,009,837 | 1,669,078 |
Rainwater | 81,000 | 81,000 | 81,000 |
Water Used from Third-Party Sources (Purchased Water) | 364,177 | 332,381 | 413,085 |
Total | 2,544,173 | 2,467,365 | 2,215,765 |
Sağa kaydırarak tablonun devamını görebilirsiniz.
| Water Withdrawal in High Water Stress Areas (m³) | 2022 | 2023 | 2024 |
Mains Water | 75,506 | 44,146 | 52,602 |
Surface Water | - | - | - |
Groundwater (Well Water) | 1,953,815 | 1,918,442 | 1,563,050 |
Rainwater | 81,000 | 81,000 | 81,000 |
Water Used from Third-Party Sources (Purchased Water) | 364,177 | 332,381 | 413,085 |
Total Water Withdrawal in High Water Stress Areas | 2,474,498 | 2,375,969 | 2,109,737 |
Legal Disclaimer
Akçansa 2024 Integrated Annual Report (‘Report’) has been prepared by Akçansa Çimento Sanayi ve Ticaret A.Ş. (‘Akçansa’). The scenario analyses aligned with TSRS, the financial materiality studies, and all assessments related to physical and transition risks stemming from climate change—prepared by Akçansa—are based on the company's data, calculations, expert opinions, and compliance with national and international standards. Akçansa Çimento Sanayi ve Ticaret A.Ş. shall not be held responsible for any losses or damages that may arise should third parties or entities rely on these assumptions.
