SUSTAINABILITY GOVERNANCE

Our Board of Directors periodically reviews and approves our sustainability vision, strategies and policies, as well as the risks and opportunities related to environmental, social and governance (ESG) matters. All sustainability-related practices are overseen by the Corporate Governance Committee under the authorization of the Board of Directors. The Board convenes twice a year to evaluate priority ESG agenda items, while developments related to sustainability are regularly reported to the Board throughout the year through committees and working groups.

The Sustainability Executive Committee, Sustainability Committee, Working Groups, and the Sustainability Directorate are responsible for ensuring the aligned implementation of our corporate strategy and sustainability strategy. These structures operate in coordination to ensure the effective implementation of the sustainability strategy across the Company.

Chaired by our General Manager and composed of members of the Executive Committee, the Sustainability Executive Committee is responsible for developing sustainability-related policies, submitting them for the approval of the Board of Directors, and preparing business plans in line with these policies. The Committee reviews and approves sustainability plans, targets, projects, and investments in detail. It also evaluates sustainability-related risks and opportunities and ensures that these considerations are integrated into strategic decision-making processes. In these evaluations, economic, environmental, and social impacts, as well as potential trade-offs among these elements, are taken into account.
The Sustainability Executive Committee meets four times a year to regularly review key ESG targets, roadmaps for achieving these targets, and performance outcomes.

Risk and opportunity analyses are regularly discussed during committee meetings. Within this framework, topics such as national and international developments, global sustainability standards, sectoral trends, emerging technologies, and digitalization are evaluated comprehensively, while stakeholder expectations, regulatory changes, and market dynamics are integrated into our decision-making mechanisms. Through this approach, we aim not only to manage existing risks but also to effectively identify and leverage long-term opportunities.

The Sustainability Committee operates under the chairmanship of the General Manager and is responsible for overseeing operational sustainability activities. The coordination and agenda management of the Committee are carried out by the Sustainability Manager. The Committee determines sustainability plans and targets, monitors progress, and ensures the implementation and follow-up of projects through working groups. It also carries out initiatives aimed at increasing sustainability awareness within the Company and among our stakeholders. The Sustainability Committee meets six times a year to evaluate progress toward the defined targets.

Sustainability focus areas determined in alignment with our corporate strategy are addressed and regularly updated by the relevant working groups. These groups are responsible for the implementation of sustainability projects and for monitoring progress. The results achieved are reported periodically and analyzed by the Akçansa Sustainability Directorate, after which they are integrated into the Company’s overall strategy. These analyses serve as key inputs in the development of action plans. Our sustainability activities are carried out in line with the principles of transparency and effectiveness.

To support sustainability management, we develop various policies and practices. The effectiveness of this management system is regularly evaluated through internal audit processes and external audit services received once a year. These audits ensure the effectiveness of our sustainability policies and practices and their compliance with applicable legislation. In addition, our sustainability performance is monitored and evaluated within the scope of the Borsa İstanbul Sustainability Index and international sustainability indices.

To understand our stakeholders’ expectations regarding sustainability and to develop strategies aligned with these expectations, we use various engagement mechanisms such as regular meetings, workshops, and surveys. We collect feedback from a wide range of stakeholder groups, including employees, customers, communities, and suppliers, and maintain continuous dialogue by actively utilizing our stakeholder communication channels. Through local partnerships and social responsibility projects, we also aim to directly address the expectations of the communities in which we operate.

Sustainability Communication Policy At the core of our sustainability approach lies our policy of transparent and reliable communication. As Akçansa, we adopt the principles of accuracy and openness in all our communications with stakeholders. While openly sharing our sustainability-related activities, we ensure that the information we provide is complete and up to date. In this process, we avoid misleading or exaggerated statements and regard presenting realistic and verifiable data as a key responsibility.

Our commitment to combating Greenwashing constitutes one of the cornerstones of our sustainability communication. By supporting not only our environmental commitments but also our economic and social commitments with concrete indicators, we aim to maintain the trust of our stakeholders. In the projects we implement and the reports we publish, we present our sustainability performance in a transparent manner and support our sustainability claims through independent evaluation and assurance processes. In this way, we prioritize sincerity and credibility in our sustainability communication and aim to set an example within our sector.

You can access the relevant policy here.

Senior Management

Duties and Responsibilities of the Sustainability Directorate

Of our Company’s shares, 39.72% are held by Hacı Ömer Sabancı Holding A.Ş. and 39.72% by Heidelberg Materials, while the remaining 20.56% are publicly traded.

• Ensure the integration of the Company’s sustainability strategy with its overall corporate strategy.

• Report sustainability developments to senior management at least once a month, and inform the Board of Directors, the General Manager, and senior management about necessary strategies, solution mechanisms, and roadmaps related to sustainability-related regulations and developments within the Company’s national and international sphere of influence, including the Carbon Border Adjustment Mechanism.

• Develop networks and business relations with relevant NGOs (TÜRKÇİMENTO, THBB (Turkish Ready Mixed Concrete Association), TÜSİAD, Turkish Cement Manufacturers’ Association (TÇMB), Miners’ Association of Türkiye (TMD), and ÇEVKO Foundation) and industry associations in order to support the Company’s sustainability strategy and represent the Company in these platforms.

• Ensure the participation of the Sustainability Manager in Board of Directors meetings held four times per year, as well as in the Sustainability Executive Committee and the Audit, Corporate Governance and Risk Committee meetings held four times per year.

• Fulfil the sustainability targets and expectations of the Company’s main shareholders, Sabancı Holding and Heidelberg Materials; benchmark and evaluate current operations, and develop roadmaps to further integrate sustainability across the Company through close collaboration with these shareholders.

• Establish sustainability targets, revise them when necessary, and monitor related Key Performance Indicators (KPIs).

• Organize Sustainability Committee meetings six times per year, with the participation of members of the Extended Executive Committee.

• Identify the impacts of sustainability- and climate change-related physical and transition risks and opportunities on the Company, and coordinate climate-related matters, risks, and associated KPIs.

• Establish and coordinate Sustainability Working Groups.

• Follow up with national and international legislation and engage with relevant authorities and stakeholders within the scope of these regulations.

• Monitor national and international sustainability reporting standards (CSRD, ESRS, GRI, TSRS, IFRS), and prepare the Integrated Annual Report each year before the General Assembly in alignment with these standards.

• Provide regular reporting to sustainability indices (Refinitiv, Sustainalytics, and CDP), as well as to the CoP disclosures required under the UNGC, of which the Company is a signatory.

• In collaboration with the Risk Directorate, identify climate and sustainability-related risks (both transition and physical risks) and assess their potential impacts.

• Monitor national and international green transformation grant and loan programs and either submit applications for suitable projects or support relevant teams in the application process.

• Participate in national and international sustainability certification programs (CSC, EPD etc.), and coordinate relevant departments in line with the requirements of audit teams.

• Organize training sessions and seminars to inform and develop stakeholders, promote internal participation, and increase awareness among employees and suppliers regarding company policies in order to drive performance outcomes.

• Support the development and implementation of corporate social responsibility projects, monitor the effectiveness and alignment of the corporate sustainability program, and identify improvement opportunities in line with the Company’s strategy, market dynamics, customer expectations, and regulatory developments.

• Monitor sustainability-linked financing mechanisms, funds, grants, and incentives, facilitate the evaluation of national and international financing opportunities that support low-carbon transformation, energy efficiency, and sustainability investments, and contribute to application and implementation processes in coordination with relevant departments.

Climate Change Governance

Duties and Responsibilities of the Sustainability Directorate

• At Akçansa, the ultimate responsibility for all sustainability- and climate-related matters rests with the Board of Directors. The Board ensures the holistic management of sustainability governance by approving the climate strategy, policy frameworks, risk and opportunity assessments, as well as related targets and action plans.

• Climate-related matters are addressed in an integrated manner within risk management, strategic planning, and financial decision-making processes. The Board of Directors and senior management closely monitor performance through regular reporting.

• The Sustainability Executive Committee, operating under the chairmanship of the General Manager, is responsible for developing sustainability policies and strategies, submitting them for the approval of the Board of Directors, and ensuring their implementation across the Company.

• Senior management, including particularly the CEO, CFO, and Sustainability Manager, assumes active responsibility for the implementation of the climate strategy, including emission reduction projects, sustainable finance initiatives, risk analyses, and reporting processes.

• 20% of senior management’s performance incentives are linked to sustainability targets. CO₂ emission reduction, the use of alternative fuels, energy efficiency, reduction of the clinker ratio, and occupational health and safety indicators constitute the core components of these incentive criteria.

• Across the entire organization, performance targets are aligned with sustainability KPIs such as emission reduction, energy and resource efficiency, renewable energy use, water management, and biodiversity management. These indicators are integrated into financial incentive mechanisms.

• The achievement level of climate-related performance targets for the General Manager, Executive Committee members, and the Sustainability Manager is considered a direct determining factor within incentive mechanisms.