Combating Climate Change
I
Climate Change
Climate Change
We enhance our climate change mitigation and adaptation efforts through active participation in national and international sectoral initiatives.
At Akçansa, we recognize climate change mitigation and adaptation as one of our top strategic priorities and act with a strong sense of responsibility in this regard. Due to the carbon-intensive nature of our industry, we play a critical role in global efforts to reduce emissions. In this context, we embrace the United Nations Sustainable Development Goals (UN SDGs) and the Paris Agreement, shaping our climate strategy in alignment with these international frameworks to create value for all our stakeholders.
We integrate climate-related risks and opportunities—identified in accordance with the recommendations and guidelines of the Task Force on Climate-related Financial Disclosures (TCFD)—into our strategic management processes, managing them through short-, medium-, and long-term targets. We closely monitor global and national regulations and continue our initiatives in support of the United Nations Global Compact (UNGC), of which we have been a signatory since 2014.
Our climate change mitigation and adaptation efforts are further enhanced through active participation in national and international sectoral initiatives. While leveraging opportunities associated with the transition to a low-carbon economy, we continuously improve our operational processes through performance-enhancing practices and strategic partnerships. In our pursuit to minimize our carbon footprint, we conduct holistic analyses across our entire value chain and accelerate our decarbonization journey through circular economy initiatives and sustainable product transformation efforts.
Governance
The Akçansa Board of Directors holds the highest level of responsibility for all sustainability matters.
Oversight and Responsibilities of the Board of Directors
At Akçansa, the Board of Directors holds ultimate accountability for all sustainability-related issues, including climate strategy, associated risks, policies, and opportunities. The Chairperson of the Board receives regular updates from the CEO on behalf of the Sustainability Executive Committee, ensuring alignment across our sustainability vision, strategy, and risk management framework. The Board also approves policies, targets, and action plans, further reinforcing our sustainability commitments. The Vice Chairperson plays a key role in defining sustainability priorities and tracking progress, receiving reports from the Sustainability Manager on a monthly basis or more frequently when needed. Other Board members oversee sustainability-driven operations, help steer the company’s strategic direction, and ensure our progress toward achieving the 2030 Sustainability Targets.
Climate-related issues are addressed within our sustainability governance framework, which is integrated with risk management, strategic decision-making, and financial planning processes.
To enhance the climate-related expertise of the Board of Directors, the following mechanisms are in place:
Regular consultations with internal working groups composed of subject-matter experts.
Periodic engagements with external stakeholders and environmental experts.
Inclusion of environmental expertise in the Board nomination process.
Ongoing environmental training sessions for Board members and the dissemination of best practice guidance (e.g., TCFD, SBTi).
The Role of the Executive Team in Climate Governance
Chaired by the General Manager (CEO) and composed of Executive Committee members, the Sustainability Executive Committee is responsible for developing sustainability policies, submitting them to the Board for approval, and turning them into actionable business plans. In addition, specific senior executives have clearly defined roles related to climate governance:
CEO: Oversees all climate-related activities and ensures the integration of the climate strategy into the company’s broader corporate strategy. Leads emission reduction initiatives, R&D efforts, and the development of low-carbon products, allocates necessary resources, and monitors the implementation of the climate transformation roadmap.
CFO: Oversees climate-related investments, sustainable finance projects, and budgeting processes for carbon reduction initiatives. As secretary of the Corporate Governance Committee, the CFO prepares reports in line with TCFD recommendations and communicates climate-related risks and opportunities to investors.
Sustainability Manager: Reporting directly to the CEO, the Sustainability Manager collaborates with relevant departments to define climate-related goals, works with the Risk Manager to assess climate risks, plans mitigation efforts, and monitors innovation initiatives. The Manager provides regular reports to the Chairperson and Vice Chairperson of the Board.
For more detailed information on our sustainability governance structure, please refer to the Sustainability Governance section of this report.
Sustainability performance is supported through financial incentives provided to relevant managers upon the achievement of annual targets.
Integration of Climate Performance into Incentive Mechanisms
At Akçansa, we apply a target-oriented performance management system, with goals set progressively from the corporate level down to the individual level. For senior management, 20% of performance-based incentives are directly tied to sustainability objectives. Accordingly, performance criteria for the CEO and Executive Committee members include climate-focused indicators such as CO₂ emission reduction, alternative fuel usage, energy efficiency, clinker ratio reduction, and occupational health and safety. When annual targets are achieved, financial incentives are granted to the respective executives to reinforce sustainability performance. The process begins with setting corporate KPIs and the General Manager’s targets, followed by defining targets for Assistant General Managers, and finally cascading down to individual employees.
Across all levels, performance targets encompass a broad range of sustainability KPIs, including CO₂ emission reduction, alternative fuel usage, biomass share in alternative fuels, raw material efficiency, environmental contributions of digitalization, energy management, biodiversity goals, water efficiency, renewable energy use, emissions control improvements, and resource efficiency.
Employees who achieve their individual targets and contribute to the company’s broader objectives become eligible for financial incentives. CO₂ reduction is one of the key performance indicators and applies universally across the organization.
The main climate-related performance indicators and incentive mechanisms for the CEO, Executive Committee members, and Sustainability Manager at Akçansa are as follows:
General Manager: Receives performance-based bonuses linked to targets such as greenhouse gas emissions reduction, decarbonization project implementation, use of alternative fuels, and clinker ratio reduction. These targets are aligned with the annual reduction goals in the company’s climate transition plan, and bonus amounts are calculated based on the achievement level.
Executive Committee Members: Receive bonuses based on annual Scope 1 and Scope 2 emission reduction goals, execution of decarbonization projects, and targets for alternative fuel usage. In addition to corporate sustainability targets, each executive has individual climate-related objectives.
Sustainability Manager: Responsible for implementing the sustainability roadmap, facilitating coordination across the Executive Committee and employees, reducing GHG emissions, and advancing the green transformation plan. Personal incentives are calculated based on the achievement of these targets, assessed through annual performance reviews.
Strategy
We closely follow the European Green Deal and Türkiye’s Green Deal Action Plan developed to align with this process.
As climate change increasingly impacts our industry and value chain, Akçansa continues to refine its strategic actions toward a sustainable future. We assess climate risks and opportunities through an integrated lens and adapt our business model in alignment with global and local regulations.
We closely monitor the European Green Deal and Türkiye’s Green Deal Action Plan developed for alignment. By analyzing sector-specific developments, we harmonize our operations with the EU and other global frameworks. With strong senior leadership support, our Sustainability, Strategy, and Finance teams develop action plans and engage actively with industry associations. We also maintain communication with regulators and public institutions, contributing to climate-related legislation both directly and indirectly. This enables us to dynamically align with transitions in Türkiye and our international markets.
In 2024, we advanced our climate mitigation efforts through innovative processes and product solutions, leveraging guidance from sources such as the “Low Carbon Roadmap for the Turkish Cement Sector” (prepared by the Turkish Ministry of Industry and Technology and EBRD) and the “2050 Net Zero Concrete Roadmap” published by the Global Cement and Concrete Association (GCCA).
In line with our parent companies Sabancı Holding and Heidelberg Materials’ Net Zero 2050 targets and the Paris Agreement’s 1.5°C objective, we remain fully committed to limiting global warming.
International Partnerships in Climate Action
At Akçansa, we believe in the power of collaboration and collective intelligence to tackle climate change. We report our operational climate impacts transparently and participate in a range of voluntary initiatives, supported by leaders and employees across all levels.
Highlights include:
Since 2011, we have reported our climate-related risks and opportunities under the CDP Climate Change program.
We have reported to the CDP Water Security program since 2016.
In 2024, we submitted detailed disclosures on Climate Change, Water, Biodiversity, and Plastics to CDP, covering risks, opportunities, impacts, and dependencies. The 2024 CDP report is available on our website.
We maintained an A- leadership score in the 2024 CDP Climate Change program and retained a B score in the CDP Water Security program.
On the LSEG (formerly Refinitiv) platform, we increased our score to 86 and ranked 2nd among 126 global construction materials companies as of December 2024.
As a UN Global Compact (UNGC) signatory since 2014, we reaffirm our commitment to its 10 principles and have completed all reporting under the updated Communication on Progress (CoP).
In 2024, we participated in COP29 held in Baku.
Also in 2024, we became a signatory of the UNGC CEO Water Mandate.
We joined the Science Based Targets initiative (SBTi) in 2022 and committed in 2023 to align with a 1.5°C scenario. Our goal is to submit our targets and finalize our 2030 roadmap by Q1 2025, with SBTi validation expected in Q2 2025. This will officially align Akçansa with the Paris Agreement. Our current 2030 targets are fully in line with expectations set by SBTi.
We also held task force meetings under the TCFD framework, identifying climate risks and refining our roadmaps. We closely follow the EU Carbon Border Adjustment Mechanism (CBAM), and as of 2024, we report emissions from our exports to Europe, ensuring compliance with CBAM regulations.
Our Environmental Product Declarations (EPDs) for cement and ready-mix concrete transparently disclose product environmental impacts. We successfully completed third-party audits conducted by the Turkish Ready-Mix Concrete Association’s Quality Assurance System (KGS) and earned the Responsible Use of Resources Certification from the Concrete Sustainability Council (CSC).
Our Çanakkale and Büyükçekmece plants earned the highest scores in Türkiye in the CSC Gold certification category. Our Bursa Aggregate Plant became the first in Türkiye to be awarded CSC Platinum certification.
Akçansa Climate Transition Plan
As part of our transition to a low-carbon economy, Akçansa has developed a climate transition plan aligned with the 1.5°C pathway. This plan outlines our emission reduction strategies, low-carbon product development processes, and financing approaches, all aligned with our long-term sustainability goals.
Our transition plan prioritizes the reduction of carbon emissions through decreased fossil fuel consumption. Key components of our strategy include expanding the use of alternative fuels, reducing clinker usage, decommissioning or modernizing inefficient equipment, and investing in low-carbon cement production. We also aim to increase the use of renewable energy across all our plants and advance carbon capture, usage, and storage (CCUS) technologies. In line with our commitment to the Science Based Targets Initiative (SBTi), we continue progressing toward science-based emission reduction targets. Additionally, we are developing market strategies to promote low-carbon cement and ready-mix concrete products.
The climate transition plan is reviewed regularly by our Board of Directors and closely monitored by representatives from Sabancı Holding and Heidelberg Materials. Progress updates are reported at least quarterly. Annual emission reduction targets set under the plan are monitored at the plant level.
At the 2024 Climate Change Conference (COP29) held in Baku, Türkiye announced its interim goals, sector-specific targets, and strategies to achieve net zero by 2053. Akçansa’s climate transition plan is aligned with Türkiye’s Long-Term Climate Strategy as disclosed at COP29. While Türkiye targets a 30% reduction in cement sector emissions by 2040 and a 93% reduction by 2053, Akçansa’s current targets are even more ambitious.
Our sustainable finance strategy is focused on securing alternative funding sources to support low-carbon investments and green transitions. We invest in sustainable projects by utilizing sustainable and green finance instruments, and optimize our cost management strategies in line with carbon pricing mechanisms.
Through this comprehensive transition plan, Akçansa aims to lead the sector’s alignment with a net-zero economy while supporting long-term sustainable growth. We will continue to inform our stakeholders through transparent reporting.
Climate Risks and Opportunities
We systematically assess how climate change may impact our business model, operations, and value chain, integrating these insights into our strategic decision-making. In this context, we follow the SASB Construction Materials Standard to identify both risks and opportunities. Scenario analyses and impact assessments are used to effectively reduce risks and maximize opportunities. Our business model is shaped in response to evolving market dynamics, regulatory changes, technological advances, and climate policy developments, aligned with financially material sustainability factors outlined by SASB.
We identify physical and transition risks and climate-related opportunities, assessing their likelihood and potential impacts, and taking proactive mitigation actions. These issues are managed as an integral part of our business strategy.
To manage physical risks, we evaluate the impacts of extreme weather events—such as landslides, floods, fires, and water scarcity—on our production operations and take actions to reduce potential disruptions. To address transition risks, we are advancing low-carbon production models and incorporating renewable energy, alternative raw materials, and circular economy principles into our operations to comply with emissions regulations.
SASB’s Construction Materials Sectoral Guidance recommends reducing carbon footprints, increasing energy efficiency, and adopting low-carbon energy to mitigate transition risks. Material recycling and waste management improvements are also essential for advancing sustainability performance. In line with these objectives, we are increasing the use of low-carbon energy, optimizing production, and refining emissions management. By adhering to SASB and TSRS standards, we identify sector-specific risks and opportunities and take steps to mitigate climate-related impacts on operations. We also aim to enhance resource efficiency by expanding recycling and strengthening waste management in line with circular economy principles. To capture climate-related opportunities, we develop low-carbon, sustainable material solutions aligned with green building certification requirements, strengthening our competitive edge. In doing so, we aim to create long-term value aligned with SASB’s material sustainability factors.
Based on our assessment, no material risk has been identified that would require adjustments to the book value of assets or liabilities reported in financial statements for the upcoming period.
| Short term | Medium Term | Long Term |
0-5 years | 5-10 years | Over 10 years |
At Akçansa, short-term strategic plans cover a 5-year period and are revised as needed. Medium-term plans span 5–10 years and are defined under 5-Year Master Plans, while long-term goals are addressed through 10-Year Master Plans.10 These planning horizons are fully aligned with our approach to climate risk and opportunity assessment. Milestone years for our climate strategy include 2030—aligned with the UN Sustainable Development Goals—and 2050, as the target year under the Paris Agreement.
10 At Akçansa, there are 5- and 10-year strategic roadmaps in place for various ESG-related issues. These roadmaps are internally referred to as the “Master Plan.
2024 Scenario Analysis Studies
In 2024, under the guidance of the Task Force on Climate-related Financial Disclosures (TCFD), we conducted a comprehensive analysis to enhance the resilience of our strategy and deepen our scenario analysis work.
We assessed the potential impacts of water stress, rising prices of alternative fuels and raw materials, and carbon pricing mechanisms. The analysis considered two climate scenarios: one aligned with the Paris Agreement, limiting warming to below 2°C (<2°C), and another with rapid emissions growth resulting in 3.5–4°C warming.
Study Methodology and Assessment Process
We applied a detailed methodology to evaluate the financial implications of climate risks across the scenarios. We first reviewed internal and external documents to identify risks. Through workshops with Akçansa teams, we identified three primary climate risks for the scenario analysis: water stress, price volatility in alternative fuels and raw materials, and carbon pricing systems.
To model their financial impacts, we collected operational data, reviewed market trends, and used assumptions based on international climate scenarios. The evaluation followed TCFD methodology, considering both physical and transition risks.
The modeling framework considered three key factors: the severity of the risk, Akçansa’s vulnerability, and the level of exposure. For both climate scenarios, we developed forward-looking financial projections and identified potential adaptation strategies to strengthen our risk management.
We used various assumptions and analytical methods to evaluate financial impacts, including cost increases, operational disruptions, and regulatory compliance. Each of the three risks was assessed under both climate scenarios.
Scenario analysis was conducted using two timeframes: 2030 and 2050. The 2030 outlook focused on short- to mid-term impacts, while 2050 provided insight into long-term resilience and strategy alignment.
In the short term, we evaluated changes in operational costs and supply chain processes. For the medium to long term, we considered emission regulations, water resource sustainability, and strategic shifts toward energy transition.
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Risk Information | Risk Description | Impact of Risk on Financial Position, Performance and Cash Flow | Estimated Financial Impact and Calculation Method | Actions Taken | Financial Materiality |
| Physical Risks | |||||
Risk Type | The frequency and intensity of extreme weather events are increasing in the regions where Akçansa operates. In particular, floods caused by heavy rainfall may temporarily or permanently interrupt operations at our plants. Climate projections indicate that the occurrence and intensity of these events will further increase in the coming years. According to our 2022 analysis using the Munich Re Location Risk Intelligence tool, 25% of Akçansa's plants are exposed to medium to high levels of risk in the long term. | Severe weather events and flood-related physical climate risks can disrupt Akçansa’s production and operations, potentially leading to revenue losses and financial strain. Extreme conditions may cause physical damage to plants, resulting in high repair costs and reduced profitability. Production disruptions can stress working capital, and additional investments in infrastructure may tighten cash flow. Repeated disruptions can also drive up supply chain management complexity and insurance costs, posing long-term threats to Akçansa’s financial stability. These risks may be reflected in the financial statements through impacts on revenues, capital expenditures, and operating expenses. Additionally, revenue losses caused by severe weather events in 2024 have already affected the revenue line items in our financial statements. | Based on analyses conducted using the Munich Re Location Risk Intelligence tool, the potential financial impact is estimated to be between 0.11% and 0.13% of Akçansa's total revenue. These figures were calculated under RCP 2.6, 4.5, and 8.5 climate scenarios. High-risk plants were identified and modeled accordingly. The calculations considered the time required for affected sites to return to pre-disruption production levels and the resulting production losses. | A Business Continuity Management System has been established, and crisis management procedures have been defined. Insurance policies have been updated, and emergency response plans have been developed for high-risk plants. Insurance expenses are reported under “Other Expenses from Operating Activities” in the financial statements. | TSRS+ |
Risk Type | Analysis conducted using the Munich Re Location Risk Intelligence tool indicates that global temperature increases could lead to a long-term sea level rise of 1 to 4 meters in the regions where we operate. This presents a significant risk to our Çanakkale and Büyükçekmece plants, as well as associated ports and terminals, potentially causing operational disruptions or necessitating plant relocation over the long term. | The anticipated sea level rise poses a long-term risk to Akçansa’s financial position, performance, and cash flows, particularly impacting coastal plants. An increase of 1 to 4 meters may lead to temporary or permanent disruptions, requiring extensive protective measures or, in extreme cases, the relocation of affected plants. The risk of physical damage could result in substantial repair and reconstruction costs, increasing operational expenses and adversely affecting profitability. Investments in flood protection measures or potential plant relocations may place additional pressure on financial resources, leading to increased capital expenditure requirements. This risk is expected to have a direct impact on financial statements, particularly in revenue, repair and maintenance costs, operating expenses, and capital investments. Furthermore, asset impairment risks may arise, which could necessitate additional financing and increase overall financial liabilities. | To assess the potential financial impact of this risk, our analysis considered direct costs associated with infrastructure damage and potential operational downtime. Based on these assessments, the financial impact of sea level rise on Akçansa’s revenue is estimated to range between 0.23% and 0.26% of total turnover. This calculation also includes potential damage costs and revenue losses associated with the risk. | As part of our risk mitigation strategy, we have updated insurance policies and are evaluating infrastructure investments to enhance the resilience of high-risk plants to sea level rise. Insurance expenses are reported under the 'Other Expenses from Operating Activities' section in the financial statements. | TSRS+ |
| Transition Risks | |||||
Risk Type | Following Türkiye’s ratification of the Paris Agreement, efforts to develop the Emissions Trading System (ETS) have accelerated in line with the 2053 net-zero target. Under the ETS, the cement sector is expected to be subject to carbon pricing. This may result in increased operational costs for Akçansa and potential shifts in product pricing, which could lead to a loss of competitive advantage. This risk has been identified as one of the most material internal risks in the context of sustainability and climate-related challenges | The implementation of the ETS is expected to cause a notable increase in Akçansa's operational costs. The introduction of carbon pricing could generate additional costs in the production process, which may negatively impact cash flow in the short term. If not properly managed, these costs could reduce operational profitability and erode competitive advantage over the medium and long term. Delays in implementing the necessary carbon reduction investments to comply with the ETS may lead to an increase in operating expenses that are not aligned with sustainability targets, along with additional cost pressures to meet regulatory requirements. Furthermore, transferring carbon costs to product pricing may cause fluctuations in customer demand, creating uncertainty in revenue streams. This risk may be reflected in future financial statements under operating expenses, production costs, and capital expenditures. Carbon costs arising from the ETS could also lead to an increase in cost of sales, thereby negatively affecting gross profit margins. Moreover, passing carbon costs onto product prices may result in decreased sales volume due to price increases. | With the Climate Law expected to come into effect in 2025, regulatory efforts related to the Green Taxonomy and the Emissions Trading System (ETS) Regulation are also ongoing. In this context, Akçansa has assessed potential financial impacts based on assumptions regarding free allocation rates and carbon pricing. According to the calculations, under a potential national ETS to be established in Türkiye, Akçansa may face a short-term cost increase equivalent to approximately 0.34% to 1% of its total revenue. These calculations are based on assumptions of free allocation rates of 97.5% in the first year, 95% in the second year, and 90% in the third year, with a carbon price of €7 per ton of CO₂e. The assumptions for free allocation rates were developed in alignment with the benchmarks used in the European Union ETS. For further details on scenario analyses conducted in relation to carbon pricing risks, please refer to the Climate Resilience and Scenario Analysis section. | Akçansa prioritizes projects that support the transition to a low-carbon economy to mitigate the potential risks associated with the ETS. In line with our 2030 Sustainability Targets, all R&D and innovation investments are managed with a strong focus on sustainability, as guided by our Low-Carbon Roadmap and the Low-Carbon/Low-Clinker New Product Development Plan. As part of our commitment to the Science Based Targets Initiative (SBTi), we are pursuing initiatives such as energy efficiency improvements, kiln process optimizations, and the substitution of alternative fuels and raw materials. Site-specific roadmaps have been developed for each plant, including decarbonization and CO₂ reduction investments, while R&D efforts continue to focus on the development of low-carbon products. | TSRS+ |
The "+" symbol in the table indicates that the calculated impact of the related risk is financially material.
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Risk Category | Risk Description | Time Horizon | Actions Taken | Financial Materiality |
| Market Risks | ||||
Transition to low-carbon economy | Rising demand is driving up the costs of alternative raw materials, energy, and fuels, potentially leading to increased operational expenditures | Long | In line with industrial symbiosis practices, efforts are being made to contribute to the circular economy by utilizing by-products from other industries, construction debris, and other alternative raw materials or fuels in production development. Ongoing investments and collaborations are being assessed to ensure a continuous and reliable energy supply. | TSRS+ |
Preference of funders for low-carbon investments | With the development and expansion of fund eligibility criteria, access to sustainable finance sources has become more challenging. According to the 2023 Joint Report on Multilateral Development Banks’ Climate Finance, mitigation finance allocated to the industrial sector remains at just 4%. However, the industrial sector holds a significant share in global emissions, and this imbalance in financing distribution is slowing down the transformation process. As also noted in the same report, development banks are shaping their portfolios predominantly around climate finance. | Short | Akçansa is actively working to align its current roadmap with the Paris Agreement's 1.5°C scenario, including initiatives such as the Net Zero Commitment, 2030 Sustainability Targets, rehabilitated mining sites, and energy efficiency projects. | TSRS+ |
Substitution of existing products and services with low-carbon alternatives | The substitution of current products and services with low-carbon alternatives may result in a decrease in profit margins, due to customer preference for traditional products. | Long | The existing Sales Technical Support Team provides technical assistance to customers regarding low-carbon alternatives and promotes sustainable products. | ESRS+ |
| Technology Risks | ||||
High investment costs required for technological transformation | The need for investments in the development of new technologies required for the decarbonization of the cement industry and the potential cost increases resulting from R&D activities carried out for this purpose. | Medium | R&D and innovation initiatives, along with internal entrepreneurship activities, are being carried out. Multi-stakeholder projects are being implemented by fostering collaborations. | TSRS+ |
Failure to complete planned technology investments focused on sustainability with the expected performance | Testing new technologies during the transition to a low-carbon economy and their failure to succeed in the market | Long | Within the scope of the transition to a low-carbon economy, evaluations regarding technology and investments have been carried out through consultancy support. In this context, technologies with a high level of technological maturity have been prioritized, and implementation is progressing in line with the established plans. | ESRS+ |
| Reputation Risks | ||||
Inability to effectively manage increasing stakeholder sensitivity regarding climate issues | Potential concerns or sensitivities among stakeholders arising from possible adverse impacts at raw material quarries and in the regions where we operate | Short | Environmental, Social, and Governance (ESG) performance is continuously improved by responding to sustainability and climate-related indices, thereby enhancing stakeholder trust. Effective stakeholder engagement is carried out through various initiatives such as neighbor councils and press site visits. | ESRS+ |
Inability to achieve sustainability goals | Failure to achieve the expected performance on time or to meet sustainability targets may lead to negative feedback from certain stakeholders, potentially resulting in reputational damage to the company. | Medium | Performance indicators aligned with sustainability goals have been defined, and 2030 sustainability targets have been set for each indicator. Roadmaps have been developed to support the achievement of these targets. Annual action plans are prepared for each performance indicator, and progress is monitored at regular intervals. | ESRS+ |
The potential negative impact on the company’s brand perception among current and potential employees due to high carbon emissions caused by the industry. | Challenges in attracting new talent due to the public’s perception of the sector as having a weak environmental profile. | Short | The company participates in university promotion days to raise awareness about the industry and its own operations, as well as the measures taken and improvements implemented. Collaborations with universities enable the integration of the company’s sustainability initiatives into academic programs. Internship opportunities are provided to students, with compensation and additional benefits offered to those supported. | ESRS+ |
The potential decline in market value due to investors shifting towards low-emission sectors | The loss of investors resulting from the potential decrease in market value caused by the shift towards low-emission sectors | Medium | Regular dialogues are held with investors to gather their expectations and priorities, which are then addressed through corresponding actions. In line with the company's transparency principle, plans and investments for transitioning to a low-carbon economy are regularly reported to stakeholders. | ESRS+ |
The metrics and targets related to the risks and opportunities identified by our company in addressing climate change are available in the Metrics and Targets section of our report.
The "+" symbol in the table indicates that the calculated impact of the related risk is financially material.
Climate Resilience and Scenario Analysis
Scenario Analysis Studies
To better understand the risks and opportunities presented by climate change and to shape our long-term strategies, we conduct science-based scenario analyses. Both in 2023 and 2024, we carried out both qualitative and quantitative assessments based on the International Energy Agency (IEA) 2°C Scenario (2DS) and the IPCC’s RCP 2.6, RCP 4.5, and RCP 8.5 physical risk scenarios.
These analyses provide insights into the resilience of our business model and strategic planning in the face of climate-related risks and opportunities. Our scenario analysis approach is guided by the following principles:
Company-wide assessments cover all operational sites.
We consider both transition and physical risks, aligned with the latest international climate frameworks.
We conduct scenario analyses over different time horizons—short-term (2030), medium-term (2050), and long-term (2100).
Macroeconomic trends, climate policies, technological advancements, energy dynamics, and local factors are incorporated into our analysis.
Transition Risk Scenario Analysis (IEA 2DS)
The IEA 2°C Scenario (2DS) presents a decarbonization pathway that limits global temperature rise to below 2°C relative to pre-industrial levels. As part of this scenario, we assessed market risks and opportunities, carbon pricing implications, and prospects for low-carbon products. The assessment used 2021 as the baseline year and extended projections through to 2060.
Our analysis evaluated the Reference Technology Scenario (RTS), Nationally Determined Contributions (NDCs), and the 2DS scenario for the global cement sector. While recognizing the importance of transforming the energy sector, the 2DS scenario emphasizes that reducing emissions in non-energy sectors is also crucial. Global GDP is expected to more than triple by 2060, with most growth concentrated in emerging markets by 2030.
Key Assumptions
Global economic growth triples by 2060.
Fossil Fuel Usage declines, and the energy sector reaches net-zero emissions.
Carbon pricing mechanisms (e.g., EU ETS) become widespread.
Carbon capture, usage, and storage (CCUS) technologies scale up.
Sustainable technologies like alternative fuels and clinker reduction are broadly adopted.
Rationale for Scenario Selection
The 2DS scenario serves as a reference point for global climate policies and focuses on reducing CO₂ emissions not only in the energy sector but also across other industries. It emphasizes the importance of innovative solutions and technological advancements on the path to decarbonization. At the same time, this scenario aligns with our strategy of developing low-carbon products and investing in sustainable operations.
Scenario Outcomes and Impacts
New regulations and carbon pricing are likely to drive emission reductions across the industry.
Rising demand for low-carbon products will support market expansion.
Decarbonization will require integrated, multi-faceted investment strategies.
Physical Risk Scenario Analysis (RCP Scenarios)
We analyzed the long-term physical climate risks to our operations using the IPCC’s RCP 2.6, RCP 4.5, and RCP 8.5 scenarios. These analyses assessed both acute and chronic physical risks, including water stress, flooding, extreme rainfall, wildfires, heatwaves, and sea level rise. All operational plants were evaluated using location-specific risk models.
Projections were based on a hybrid of CORDEX regional climate models and CMIP5 global models. Tropical cyclone and flood risks used Munich Re models, while heat, precipitation, and fire risks relied on ERA5 reanalysis data. The baseline period was 1986–2005, and projections were modeled using 20-year averages for robustness.
Key Assumptions
RCP 2.6: Aggressive mitigation keeps temperature rise below 2°C by 2100.
RCP 4.5: Moderate mitigation limits warming to 2–2.4°C.
RCP 8.5: Unchecked emissions drive warming beyond 4°C, triggering severe impacts.
Rationale for Scenario Selection
RCP 2.6: Represents an ambitious but achievable mitigation pathway.
RCP 4.5: Reflects moderate policy success on carbon reduction.
RCP 8.5: Stress-tests operational resilience under extreme risk conditions.
Scenario Outcomes and Impacts
Flooding, heavy rainfall, and wildfire risks are rated medium to high.
Water stress across Türkiye necessitates investment in water efficiency, particularly at high-risk sites.
Heatwaves may raise energy demands and occupational health risks.
Sea level rise poses a limited direct risk but reinforces the need for enhanced climate adaptation.
General Results of 2023 Scenario Analysis and Strategic Implications
We incorporate climate scenario analyses into our strategic planning, financial decision-making, and risk management frameworks. These analyses provide valuable insights for identifying investment priorities, improving water and energy efficiency initiatives, and implementing climate-resilient operational strategies in alignment with our net-zero ambitions.
Regulatory pressures and new policies are expected to shape the industry. We are developing strategic plans based on scenario analyses to adapt to these changes.
We are investing in areas such as the use of alternative fuels, energy efficiency, and reduction of clinker ratios.
We are expanding our sustainable product portfolio in response to the increasing demand for low-carbon products.
We have set our emission reduction targets for 2030 through financial impact assessments conducted under different regulatory scenarios.
We are evaluating the feasibility of implementing Carbon Capture, Usage, and Storage (CCUS) technologies.
We are reinforcing water management strategies and implementing preventive measures against extreme weather risks.
Carbon Pricing Scenarios
Global carbon pricing is gaining traction as a key climate mitigation tool. In Türkiye, the Climate Law, expected in 2025, is set to introduce a national Emissions Trading System (ETS). This development is projected to increase compliance costs, especially for energy-intensive sectors.
<2°C Scenario: Tighter regulation and rising carbon prices could significantly impact cost structures. Akçansa aims to mitigate this risk by advancing its decarbonization roadmap, including investments in renewable energy, alternative fuels, and efficient technologies.
3.5–4°C Scenario: While slower regulatory adoption may ease short-term pressures, delayed action could result in higher long-term costs due to tightening policies. Near-term competitive advantage may be offset by increased transition risk in the future.
Climate-Related Opportunities
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| Opportunity Information | Opportunity Description | Impact of Opportunity on Financial Position, Performance and Cash Flow | Estimated Financial Impact and Calculation Method | Strategy for Capturing the Opportunity |
Opportunity Type | Given the carbon-intensive nature of the cement industry, transitioning to low-carbon energy sources presents a significant opportunity to reduce operational costs. Increasing the share of alternative fuels, such as biomass and other sustainable resources, contributes to lowering carbon emissions while improving cost efficiency. By integrating more alternative fuels into the fuel mix, energy costs can be significantly reduced, enhancing Akçansa’s competitive advantage. | Akçansa’s above-industry-average alternative fuel substitution rate has already led to notable reductions in energy costs, positively impacting the company’s financial performance. By reducing dependence on traditional fossil fuels and incorporating cost-effective and sustainable fuels like biomass, the company has also lowered indirect operating costs. This transition has not only improved profitability and increased gross profit margins but has also enhanced cash flow stability by mitigating exposure to volatile conventional fuel prices. Additionally, as regulatory frameworks increasingly promote low-carbon practices, Akçansa’s rapid adoption of alternative fuels positions the company to benefit from future financial incentives, improved market competitiveness, and a more resilient long-term financial structure. The reduction in energy costs achieved through a higher alternative fuel usage rate directly contributes to improved financial performance. Moreover, the company may benefit from future carbon credits or government incentives, which could lead to new revenue streams. | This opportunity has the potential for a high long-term financial impact. Current projections indicate that the shift toward a low-carbon economy could generate a potential annual financial impact equivalent to 0.39% of Akçansa’s total revenue. The calculations focus on cost savings from reducing fossil fuel consumption and increasing alternative Fuel Usage, which directly contributes to lower operational expenses. With alternative fuel usage surpassing industry averages, this opportunity has already positively influenced financial results for the relevant reporting period. Plant-based cost analyses conducted within alternative fuel committees reveal that, in 2024, the company achieved a total cost reduction of TRY 42.5 million, representing 0.2% of total revenue. | In alignment with our 2030 Sustainability Targets, Akçansa is implementing a comprehensive Alternative Fuel Master Plan, which targets achieving an alternative fuel usage rate of 35%. The plan outlines the strategic and operational measures necessary to increase alternative Fuel Usage. Further information on the strategy and its implementation is available in the Alternative Fuel Usage section of this report. |
Opportunity Type | The cement sector is considered a significant contributor to global CO₂ emissions. However, Akçansa has transformed this challenge into an opportunity by expanding its sustainable and low-carbon product portfolio. Committed to reducing the carbon footprint of its cement products, Akçansa aims to cut CO₂ emissions by 20% and double the share of low-clinker products by 2030. With growing demand for sustainable building materials, the company is well-positioned to capitalize on this shift. | Investments in low-carbon products and services have enabled Akçansa to address the rising demand for sustainable construction materials through alternative raw materials and low-clinker cement-based products. By allocating R&D resources to low-carbon solutions, Akçansa has not only diversified its revenue streams but also enhanced its market differentiation, attracting environmentally conscious customers. This strategic transformation has driven sales growth and revenue expansion, particularly in markets where climate-conscious purchasing decisions are on the rise. | While a detailed market study to quantify the financial impact of this opportunity is yet to be conducted, preliminary calculations estimate a 1% increase in revenue driven by the rising demand for Akçansa’s low-carbon products. Based on this assumption, the financial impact is projected to range between 1.07% and 1.34% of total revenue. | Aligned with its 2030 Sustainability Targets, Akçansa is intensifying efforts to increase the market share of high-value, green products. The company is accelerating R&D and innovation initiatives for low-carbon solutions, with TRY 25.8 million invested in R&D and innovation in 2024, representing 0.12% of total revenue. The detailed strategies and initiatives supporting this transition can be found in the Sustainable Product s section of the report. |
Opportunity Type | Customers’ environmental awareness continues to grow, leading to an increasing demand for products aligned with green building certifications such as LEED and BREEAM. Akçansa aims to meet this demand through its sustainable product portfolio, offering new and environmentally friendly products to support revenue growth. This trend, combined with the growing regulatory focus on green certifications and sustainable construction materials, presents a significant opportunity for Akçansa in the medium term. | Akçansa’s strategy focuses on expanding its range of green and sustainable products to meet this increasing demand and capitalize on the growth of the eco-conscious construction market. This transformation is expected to increase demand for Akçansa’s sustainable products and drive revenue. Additionally, the demand for certified green building products such as those with LEED and BREEAM certification is expected to rise Furthermore, Akçansa’s proactive compliance with evolving green construction regulations enables the company to align with market trends, potentially reducing regulatory risks and associated costs. | Due to the lack of sufficient and reliable data, along with high measurement uncertainty, the direct financial impacts of this opportunity have not yet been calculated. | We utilized the GCCA’s life cycle assessment and calculation tool to create self-declared Environmental Product Declarations (EPD) for 26 concrete products, leveraging our internal resources. In response to customer requests, we transparently share the required data with stakeholders for green building investments and communicate the environmental impacts of our products across their life cycle. Since the process was carried out entirely using internal resources, no additional investment or budget was required, and the opportunity was realized without incurring extra costs. |
Opportunity Type | The use of alternative fuels and raw materials ensures efficient resource usage, reducing operational costs and supporting the principles of a circular economy. The reduced reliance on traditional raw materials and energy sources lowers production costs, positively impacting financial performance. | Akçansa's shift towards a circular economy, driven by the increased use of alternative fuels and raw materials, has optimized resource usage, resulting in reduced operational costs and enhanced cost efficiency. By minimizing dependence on traditional raw materials and energy sources, production costs have been reduced, directly improving the company's financial performance. These cost savings contribute to strengthening profit margins and positively impacting cash flow. | The financial benefit to be gained from this opportunity, driven by the increased use of alternative fuels and raw materials, has been estimated to range between 0.6% and 0.67% of Akçansa’s total revenue. The estimates are primarily based on the use of alternative raw materials that reduce the consumption of natural resources, which in turn leads to cost savings. | Our 2030 Sustainability Targets also include increasing the use of alternative raw materials. As part of the strategy, KPIs have been established to guide the path towards the circular economy component. The relevant strategy and implementations can be found in the Alternative Fuel Usage and Alternative Raw Material Usage sections of the report. |
As part of the global combating against climate change, the implementation of carbon pricing mechanisms is expected to become more widespread.
Climate-Related Risk Management
We manage our risks in accordance with our corporate risk management methodology, adhering to established standards and best practices. We address environmental, social, governance, operational, strategic, financial, and compliance risks through a holistic approach. The Early Risk Detection Committee ensures that preventive measures are taken against risks that could impact the company’s existence, development, and continuity.
At Akçansa, we manage the identification, assessment, and monitoring of climate-related risks as an integrated part of our corporate risk management processes. Within this scope, climate risks and opportunities are assessed across operations and the supply chain using both qualitative and quantitative analysis methods. Their probability and impact are calculated, prioritized based on financial and operational implications, and updated regularly through annual review processes. No changes have been made to our climate risk management processes compared to the previous reporting period.
For further details on our risk management processes, please refer to the Risk Management section of the report.
As part of climate risk management, we monitor long-term sectoral and global risks and evaluate innovative technology opportunities in line with the International Energy Agency (IEA) Low-Carbon Technology Roadmap, the Global Cement and Concrete Association (GCCA) Roadmap, and the CEMBUREAU strategic framework.
We evaluate climate-related risks and opportunities using qualitative and quantitative methods to assess their impact. These evaluations cover all Akçansa operations and are based on both international data sources and internal company data.
We also conduct internationally recognized climate scenario analyses to assess the resilience of our organization against various climate scenarios. In this context, we test and report the climate resilience of our strategy across multiple time horizons—2030, 2040, 2050, and 2100—based on IEA and IPCC transition and physical climate scenarios.
For more information on climate-related risks, opportunities, and scenario analyses, please refer to the Climate Change – Strategy section of the report.
Climate-Related Policies and Actions
At Akçansa, our Environmental and Energy Policy and Sustainable Supply Chain Policy guide our mitigation and adaptation actions regarding climate change. These policies encompass key areas such as reducing greenhouse gas emissions, lowering air pollutant levels, optimizing water consumption, managing waste, increasing the use of alternative fuels, reducing clinker content in cement, using alternative raw materials, and implementing circular economy practices. We extend these policies to all our suppliers by incorporating sustainability principles into our contractual agreements.
In addition, we have established the Sustainability Declaration and the Sustainability Management Procedure to strengthen our climate change mitigation efforts. These documents outline our initiatives to increase the use of alternative fuels, develop circular economy practices, and reduce the clinker ratio in cement products.
For more information on our climate-related policies, strategies, and actions, please refer to the Energy Management, Alternative Fuels, Sustainable Products, and Alternative Raw Material Usage sections of the report.
Investments and Expenditures Related to Climate Risks and Opportunities
In line with our strategic priorities, we allocate financial resources to support climate change adaptation and the transition to a low-carbon economy. While increasing our investments to promote sustainable growth, we aim to create long-term value through innovative financing models. Below is a summary of our current allocations and future financing plans:
Financial Metrics Aligned with Climate-Related Opportunities
As part of our sustainable growth strategy, we prioritize investments that align with environmental opportunities. In 2024, our R&D and innovation investments with a sustainability focus totaled TRY 25,882,718.
In line with our 2030 Sustainability Targets, we manage our investment process through our CO₂ Roadmap and Low-Carbon / Low-Clinker New Product Development Plan. Our investments in energy efficiency, low-carbon technologies, and product innovation continue to generate added value for both our company and the sector.
Impact of Climate Risks and Opportunities on Our Business Strategy
We expect demand for low-carbon products and services to rise significantly in the coming years. Accordingly, we view the market demand for low-carbon products as a significant opportunity in the medium term (by 2030). While the transition to low-clinker products offers considerable potential in the cement industry, failure to adapt represents a significant risk, as clinker production is the primary source of carbon emissions in cement manufacturing. Reducing clinker content and incorporating mineral additives can directly lower carbon emissions.
In this context, we are expanding and diversifying our product portfolio with low-clinker cement formulations, incorporating mineral and secondary materials such as slag and fly ash sourced from other industries. In line with our 2030 Sustainability Targets, we have defined clear targets under our "Innovation" focus area to drive low-carbon product development. We are accelerating R&D efforts to develop cement and concrete with reduced clinker content. Accordingly, we have created a Product Transition Plan and planned the necessary production line investments. This structured approach defines our medium- to long-term strategy for phasing out unsustainable products.
We have established our Product Transition Plan aimed at promoting cement and concrete products with reduced clinker content and increased use of additives.
To classify and recognize our sustainable and low-carbon products, we have established a sustainable product portfolio based on the EU Taxonomy and other globally recognized frameworks, covering both existing and new cement products.
For more information on our sustainable product offerings, please refer to the Sustainable Products section of this report.
These strategic actions reflect our strong commitment to managing climate risks while seizing low-carbon product opportunities. Aligned with our sustainability goals, we continue to lead industry transformation by developing products with a lower carbon footprint, enhanced water efficiency, and improved circularity.
The Impact of Climate Risks and Opportunities on Financial Planning and Performance
Environmental risks and opportunities have a substantial influence on various aspects of our financial planning. These include assets, capital allocation, revenues, capital expenditures, direct and indirect costs, and access to capital. Climate-related issues—creating both risks and opportunities—play a central role in shaping our financial strategy and investment priorities.
| Financial Statement Item | The Impact of Climate-Related Issues on Financial Planning and Performance |
Capital Expenditures | To prepare for a low-carbon future, we are investing in alternative fuels such as dried sewage sludge (DSS), waste oils, tire-derived fuels (TDF), and fuels sourced from non-recyclable waste (RDF, SRF). As part of this transition, we are implementing process modifications to reduce clinker content and produce low-carbon products. We are also focused on increasing the use of biomass-rich alternative fuels. Planned capital expenditures through 2030 include R&D initiatives and production line upgrades, aligned with investments supporting alternative raw materials and new product development. |
Revenues | The increasing use of alternative fuels and raw materials contributes to lowering direct production costs, which enhances profitability. We also anticipate strong medium-term growth in demand for low-carbon products, presenting a strategic opportunity to increase revenue through differentiated and sustainable offerings. |
Direct Costs | Replacing conventional fossil fuels such as coal and petroleum coke with alternative fuels results in lower direct costs and improves our cost structure. This shift contributes to a more resilient and sustainable financial model by reducing reliance on high-emission energy sources. |
Capital Allocation | Transitioning to alternative fuels has strengthened our operational cash flow, allowing for more targeted and efficient capital allocation. Enhanced financial planning supports investment in decarbonization technologies and operational optimization. |
Indirect Costs | Although using lower-cost alternative fuels reduces operating expenses, upcoming regulatory mechanisms—such as the Emissions Trading System (ETS)—may increase indirect costs through carbon pricing. We are proactively planning for these changes to mitigate their financial impact and maintain competitiveness. |
Access to Capital | Climate-related risks and opportunities improve our access to low-interest financing and enable participation in government-backed incentive schemes and climate-focused funds. We also integrate carbon trading models (e.g., cap-and-trade) into our financial projections to anticipate and manage potential costs under future carbon regimes. |
Assets | We assess all assets for climate-related risks and apply appropriate risk mitigation and insurance strategies. In addition, we have activated decision-making processes to strengthen the resilience of our assets through structural enhancements and climate-adaptive improvements. |
Metrics and Targets
At Akçansa, we are fully aware of our responsibility in combating climate change. Accordingly, we set our climate targets in alignment with international standards and science-based goals. In 2024, we updated these targets to reflect our continued commitment. Our objectives and performance regarding energy management and the use of alternative fuels are detailed in the relevant sections of the report. We calculate our greenhouse gas emissions in tons of CO₂ equivalent, based on the TS EN ISO 14064-1:2018 standard—which provides guidelines for calculating and reporting greenhouse gas emissions at the organizational level—as well as the Greenhouse Gas Protocol: Corporate Accounting and Reporting Standard (2004). In our emission calculations, we use actual service metrics including energy consumption, purchased raw materials, fuel usage, sales, travel, and more.
We adopt a control-based approach to emissions reporting. This means we report all greenhouse gas emissions resulting from activities under our operational control. This approach ensures that we assume 100% responsibility for managing and reporting emissions within our operational boundaries. As we have full authority to implement emission reduction policies, we are able to manage our carbon footprint effectively.
We measure Scope 1 emissions from all of our operational activities and business units. These calculations include emissions from natural gas, fuel oil, petroleum coke, alternative fuels, R22 refrigerants, cooling gases, fire suppression systems, as well as process-related emissions—based entirely on actual data and measurements.
For Scope 2 emissions, which result from our consumption of grid electricity, we calculate both location-based and market-based values. In 2024, we reported market-based emissions as zero, thanks to our purchase of I-REC and YEK-G certificates.
2050
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We have assessed all Scope 3 emissions categories based on their significance, and have included the following in our calculations: Category 1: Purchased Goods and Services, Category 3: Fuel- and Energy-Related Emissions, Category 4: Upstream Transportation and Distribution, Category 6: Business Travel, Category 7: Employee Commuting, Category 9: Downstream Transportation and Distribution, and Category 10: Processing of Sold Products.
All of our Scope 1, 2, and 3 emissions have been verified through limited assurance services, details of which can be found in the Assurance Statement in Appendices section.
In line with Türkiye's 2053 Long-Term Climate Strategy and the net-zero commitments of our key stakeholders, Akçansa is committed to achieving net-zero emissions by 2050. We have also established 2030 interim targets and milestones to guide us in this journey.10
In 2024, our Scope 1 net emission intensity rose by 0.57% compared to the previous year, reaching 705 kg of CO₂e/ton of cementitious material, while our Scope 1 gross emission intensity decreased by 0.81%. The product-specific Scope 3 emission intensity saw a 15% increase compared to the 2023 baseline year.
10 We do not have any legally required emission reduction targets to meet under current laws or regulations.
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| Performance Indicator | Birim | 2023 | 2024 | 2030 Targets |
Scope 1 CO₂ emission intensity - net | kg CO₂e/ton cementitious | 701 | 705 | 585 |
Scope 1 CO₂ emission intensity - gross | kg CO₂e/ton cementitious | 742 | 736 | 626 |
Scope 2 Emissions (Market-based) | ton CO2e | 0 | 0 | 0 |
Product-specific Scope 3 CO₂ emission intensity and emission reduction (relative to 2024 base year) | ton CO₂e/ton production11 | 0.103 | 0.103 | 0.08 (-25)% |
Clinker use ratio | % | 87.5 | 85.8 | 75 |
11 Total production includes all cementitious products, concrete products, and aggregate products produced during that year.
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| Greenhouse gas emissions12 | Birim | 2023 | 2024 | 2030 Targets |
Scope 1 Emissions (Gross) | ton CO2e | 5,533,084 | 5,309,000 | 5,484,834 |
Scope 1 Emissions (Net) | ton CO2e | 5,276,965 | 5,011,227 | 5,259,903 |
Scope 2 Emissions (Location-Based) | ton CO2e | 301,672 | 300,057 | 296,562 |
Scope 2 Emissions (Market-based) | ton CO2e | 138,070 | 0 | 0,08 (-%25) |
Scope 3 Emissions | ton CO2e | 1,457,047 | 1,718,887 | 1,758,743 |
Total Greenhouse Gas Emissions | ton CO2e | 7,128,201 | 7,027,887 | 7,243,577 |
12 The greenhouse gas emission data is provided for the group included in Akçansa's financial consolidation. There are no associates, joint ventures, or unconsolidated subsidiaries mentioned under TSRS 2 29 (a)(iv)(2). Emission data for the companies included in the long-term financial investment item presented in the annual report have not been included.
We have aligned our 2030 greenhouse gas (GHG) intensity reduction targets with the Paris Agreement and the Science-Based Targets Initiative (SBTi). In the first quarter of 2025, we plan to submit our SBTi target and finalize our emissions reduction roadmap covering the period through 2030. Our 2030 and 2050 targets encompass all Akçansa operations and geographical regions. Compared to 2023, our gross Scope 1 emissions increased by 3.3% and net Scope 1 emissions increased by 4.96% in 2024. Scope 3 emissions also rose by 2.3%. Consistent with the previous reporting period, we have neutralized our market-based Scope 2 emissions for 2024 through the purchase of I-REC and YEK-G certificates.
In 2024, Akçansa did not have any gross Scope 2 greenhouse gas emissions subject to emission-limiting regulations or programs aimed at directly restricting or reducing emissions. However, with the anticipated implementation of the Emissions Trading System (ETS) Regulation in Türkiye, we expect Scope 2 emissions to fall under this regulatory framework in upcoming reporting periods.
Carbon Credit Usage
In 2024, no carbon credits were purchased. In future periods, we may consider purchasing carbon credits as part of our efforts to reduce emissions beyond our value chain. However, we have not yet established a clear framework regarding how and to what extent carbon credits will contribute to achieving our net greenhouse gas emission targets. Our primary focus is to minimize our operational emissions. Carbon credits are considered a complementary mechanism to offset any residual emissions. We plan to finalize our carbon credit strategy and implementation approach in the near future. Furthermore, with the anticipated enactment of the Climate Law in Türkiye in 2025, we plan to evaluate the use of carbon credits within offsetting mechanisms, depending on our company’s CO₂ emission performance.
Internal Carbon Pricing
We use the shadow pricing method to strengthen decision-making processes during the transition to a low-carbon economy and to ensure preparedness for regulatory requirements.
To strengthen decision-making mechanisms during the transition to a low-carbon economy and ensure preparedness for regulatory requirements, we apply the shadow pricing method. Our decarbonization projection, developed in 2023 and 2024, incorporates potential carbon prices that may arise with the implementation of an Emissions Trading System (ETS) in Türkiye.
Our internal carbon price is set within the range of EUR 5–10 per ton of CO₂, with an anticipated annual increase of 20%. In determining this price, we consider EU ETS price levels, global ETS trends, and Türkiye’s free allocation mechanisms.
Internal carbon pricing is applied as a mandatory evaluation criterion, particularly in investment decisions. It is used as a decision-support mechanism in operational energy efficiency and carbon reduction investments, in prioritizing low-carbon products and sustainable innovation projects within product development and R&D processes, and in assessing the financial impact of carbon costs in risk management and financial planning. We use simulation models to analyze the impact of carbon pricing and evaluate its effect on EBITDA.
We have evaluated the sector-specific metrics outlined in the Construction Materials appendix of the TSRS 2 Sector-Specific Guidance. Accordingly, relevant data is disclosed in the Energy Management, Air Quality, Water Management, and Waste Management sections of this report, as well as in the Environmental Performance Indicators tables in the Appendices. Additionally, the SASB Disclosure Table in the Appendices specifies where the corresponding metrics are reported.
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.
