(ESRS1)
CLIMATE CHANGE
As Akçansa, we believe in the transformative power of collaboration and collective action in climate action. We remain committed to transparently reporting all climate-related impacts arising from our operations and to actively participating in voluntary initiatives.
As Akçansa, we believe in the transformative power of collaboration and collective action in advancing climate action. We remain committed to transparently reporting all climate-related impacts arising from our operations and to actively participating in voluntary initiatives. In line with this approach, we regularly disclose our performance on climate and water management on national and international platforms and aim to achieve a strong position in relevant indices and assessment systems. In this context:
Since 2011, we have regularly reported our climate-related risk and opportunity management under the CDP Climate Change program, one of the world’s largest environmental disclosure platforms.
Since 2016, we have continued our reporting under the CDP Water Security program.
In 2025, we reported in detail our climate change- and water-related risks, opportunities, impacts, and dependencies under the CDP framework. Our 2025 CDP report is accessible through our corporate website.
According to the 2025 assessment results, we achieved an A score in the CDP Climate Change Program and were included in the A List. In the CDP Water Security Program, we improved our score from B (Management) to A- (Leadership).
On the London Stock Exchange Group (LSEG) platform (formerly Refinitiv), we increased our sustainability performance score to 89, achieving the highest score in our history and ranking 1st among 135 international companies evaluated in the construction materials sector.
While continuing our commitment to the 10 principles of the United Nations Global Compact (UNGC), to which we have been a signatory since 2014, we completed our reporting under the updated Communication on Progress (CoP) framework.
In 2024, we signed the UN CEO Water Mandate, further strengthening our global commitments in the field of water stewardship.
Following the entry into force of the Climate Law in our country in 2025, we continued to share our views and recommendations during the development of regulations related to the Emission Trading System and Carbon Offsetting mechanisms established under the new framework. In this context, we actively contributed to the work of the Carbon Market Board and the Advisory Board, and participated in working groups addressing regulatory topics that directly affect our sector.
Through these efforts, we are improving our performance in climate and water management in line with international standards, strengthening our strong position in global sustainability assessment platforms, primarily CDP and LSEG (formerly Refinitiv), and continuing to provide transparent and comparable data for all our stakeholders, especially investors.
In 2024, we reviewed our sustainability targets and revised our emission reduction targets to align with the Paris Climate Agreement, submitting the updated targets for senior management approval.
Within this framework, our 2030 emission intensity reduction targets have been determined in line with science-based methodologies and global climate goals. Throughout 2025, we continued to implement emission reduction initiatives in line with these targets. Guided by the established roadmap, we continue to advance our operations in support of the transition to a low-carbon economy.
We closely monitor developments related to the Carbon Border Adjustment Mechanism (CBAM) of the European Union, which will enter into force in 2026. Since 2024, we have regularly reported the emission values of the products we export to Europe, thereby fulfilling our regulatory obligations. In 2025, we also completed the final quarterly reporting of the transition period. Within this process, we conduct CBAM Impact Analysis studies, regularly update our projections regarding carbon costs, and integrate the outcomes into our corporate strategy. In addition, within the scope of the Climate Law and related secondary legislation enacted in our country, we continue to enhance our emission monitoring, reporting, and verification processes. We also closely monitor the potential impacts of the Emission Trading System and carbon regulations on our operations and continue our compliance efforts.
Through the international Environmental Product Declarations (EPD) prepared for our cement and ready-mix concrete products, we transparently share the environmental impacts of our products with our customers. While successfully completing independent audits conducted by the Türkiye Ready Mixed Concrete Association Quality Assurance System (QAS), we continued to maintain the Concrete Sustainability Council Certification (CSC) Responsible Sourcing Certificate across all eligible facilities.
In 2025, we renewed the Gold-level CSC Certification for our Gebze Ready-Mix Concrete Plant. Following our Çanakkale and Büyükçekmece plants, our Ladik Cement Plant also obtained Gold-level CSC Certification for the first time. As a result, we became the first building materials company in Türkiye whose all cement plants hold Gold-level CSC certification.
3
Number of facilities with Gold-Level CSC Certification
Akçansa Climate Transition Plan
At Akçansa, we address the transition to a low-carbon economy through a comprehensive climate transition plan aligned with the 1.5°C scenario and designed to support long-term value creation. This plan, shaped in line with the methodologies of international sustainability rating agencies and roadmaps aligned with the 1.5°C pathway, enables us to manage our climate performance in a transparent and globally comparable manner. The plan brings together our strategic priorities for emission reduction, low-carbon products and production processes, as well as our investment and financing approaches within an integrated framework.
Within the scope of our transition plan, reducing fossil fuel consumption and lowering carbon emissions constitute key priorities. Increasing the use of alternative fuels, reducing the clinker ratio, implementing energy efficiency investments, modernizing or phasing out aging equipment, and investing in low-carbon cement production form the core elements of our strategy. We also aim to expand the use of renewable energy across all our facilities, while continuing to develop projects related to carbon capture, utilization and storage (CCUS) technologies. In addition, we are developing product- and customer-focused strategies to support the wider market adoption of low-carbon cement and ready-mix concrete products.
Our climate transition plan is implemented under the regular oversight of our Board of Directors and is closely monitored by representatives of Sabancı Holding and Heidelberg Materials. Developments under the plan are reviewed at least quarterly, and annual emission reduction targets are monitored at the facility level to ensure effective performance tracking.
In line with Türkiye’s 2053 net-zero target, interim and sectoral targets were announced during the COP29 Climate Change Conference in 2024. Akçansa’s climate transition plan is implemented in alignment with Türkiye’s Long-Term Climate Strategy. For the Turkish cement sector, emission reduction targets have been set at 30% by 2040 and 93% by 2053. Akçansa’s emission reduction targets, however, are positioned to go beyond these national ambitions with a more ambitious trajectory. As also highlighted in analyses conducted by international ESG assessment organizations, we continue to strengthen our regional and sectoral leadership through our climate strategy and emission reduction performance.
In line with our sustainable finance approach, we prioritize access to financing sources that support low-carbon investments and the green transition. By evaluating sustainable and green financing instruments, we invest in projects with strong environmental performance and effectively manage financial risks and opportunities by aligning with carbon pricing mechanisms.
Through this comprehensive climate transition plan, we aim to align with the net-zero economy, promote leading practices within our sector, and support our sustainable growth over the long term. We will continue to transparently inform our stakeholders about our climate-related performance and progress and provide disclosures aligned with international reporting frameworks.
