ALTERNATIVE RAW MATERIAL USE

As Akçansa, we position the increase in the use of alternative raw materials as one of our priority targets in line with our 2030 Sustainability Targets. By expanding the use of alternative raw materials and mineral additives in our cement production processes, we reduce the consumption of natural resources and limit our carbon dioxide emissions by lowering the clinker ratio.

Within this scope, we integrate various alternative materials into our production processes, including foundry sand, grid, marble fragments, concrete waste, industrial sludge, excavation soil, fly ash, pyrite ash, and copper flotation waste. In this way, we contribute to the circular economy while also reducing waste generation through the utilization of industrial by-products.

As part of our efforts to increase the use of alternative raw materials, an important collaboration was initiated in 2024 with ODAŞ. By integrating fly ash supplied from the Çan 2 Thermal Power Plant owned by ODAŞ into our cement production processes, we aim to both reduce natural resource consumption and contribute to the circular economy. According to 2025 data, 150,000 tons of fly ash supplied by ODAŞ were utilized in cement production under this collaboration. Similarly, in addition to the fly ash supplied by ODAŞ, approximately 130,000 tons of fly ash per year are procured from other thermal power plants as alternative sources. As a result, our total annual fly ash supply reaches approximately 300,000 tons. Within this framework, considering the 2 million tons of total contracted volume defined for this long-term supply arrangement, our current procurement structure is assessed to be progressing in line with the contractual provisions. These supply volumes indicate that the obligations envisaged under the agreement are being fulfilled as planned. Through the development of alternative sources, we aim to further reduce the use of natural resources.

In order to increase our alternative raw material utilization capacity, we have completed investments in new silo and feeding systems that support the use of fly ash at our Çanakkale and Büyükçekmece plants. Through these investments, we increased the share of fly ash in blended cement production and reduced natural resource consumption. In addition, we continue to conduct new material research and industrial-scale trials to reduce greenhouse gas emissions arising from clinker and cement production and to enhance resource efficiency.

Alternative Fuel and Raw Material Scenarios

The use of alternative fuels and raw materials is at the core of our strategy to reduce carbon emissions. However, as the global transition to a low-carbon economy accelerates, demand for these resources is increasing and supply conditions are changing. Limitations in the supply of alternative fuels and raw materials may lead to cost increases in the long term.

In particular, as demand rises for fuels derived from waste and alternative raw materials sourced from industrial by-products, increased competition may drive prices upward. This development is directly linked to the strengthening of policies aimed at reducing carbon emissions across the sector.

According to climate scenarios, under the <2°C scenario, demand for alternative fuels will increase rapidly in line with global net-zero targets, and supply constraints and price increases may occur for certain raw materials. Under the 3.5–4°C scenario, demand is expected to grow more slowly due to lower regulatory pressure; however, in the long term, resource scarcity is likely to continue driving price increases.

Waste Management Performance Indicators

We aim to increase the use of alternative raw materials in the cement and concrete products we produce in line with industry best practices. In this context, our 2030 targets include increasing the share of alternative raw materials in both cementitious products and concrete.

In 2025, our alternative raw material usage rate in cementitious products was 5.7%. We also continue our efforts to increase the use of alternative raw materials in ready-mixed concrete production. In 2025, we used a total of 82,290 tons of mineral additives in ready-mixed concrete production. Of this amount, 63,177 tons consisted of fly ash and 19,113 tons consisted of slag. Through this high level of mineral additive use, we optimized cement and clinker consumption while producing durable concrete with lower environmental impact.

In 2025, compared to the previous year, we increased the use of alternative raw materials in cement products by 12% and in concrete products by 14%. By 2030, we aim to raise the share of alternative raw materials to 10% in both product groups. In addition, in 2025 we diverted 752,310 tons of waste used as alternative resources from disposal sites and recovered them for use in the economy.

More detailed information on the raw materials used can be found in the Environmental Performance Indicators section in the Annexes of this report.