Materiality Analysis

Importance of the Material Issue for Akçansa

Compliance with occupational health and safety standards encompasses measures designed to safeguard the health and safety of employees, alongside the implementation of practices aimed at preventing workplace accidents and minimizing occupational illnesses. This issue is addressed not only for company employees but also extends to subcontractors and all stakeholders within the supply chain. OHS practices and objectives aim to establish a unified standard across all operational processes and promote a widespread occupational health and safety culture.

This scope encompasses anticipating the adverse effects of climate change, implementing necessary measures to prevent or mitigate potential damages, developing strategies to reduce greenhouse gas emissions across the entire value chain, and seizing emerging opportunities while ensuring operational resilience. It includes making production processes resilient to the negative impacts of climate change, managing greenhouse gas emissions, and securing long-term business continuity. These initiatives extend beyond internal operations to cover all stages of the value chain.

Effective energy management involves enhancing energy efficiency and promoting the use of renewable energy sources. Additionally, it includes optimizing production processes, utilizing technologies such as waste heat recovery, supporting renewable energy generation (e.g., wind and solar power), and exploring energy storage solutions. The development and implementation of strategies to minimize the environmental impact of energy consumption are also integral to this approach.

The conservation and enhancement of biodiversity encompass the sustainable management of all operational sites—including cement production plants, ports, aggregate quarries, and ready-mix concrete plants—as well as the responsible use of natural resources to minimize environmental impacts. This includes protecting ecosystems within operational areas, preventing land degradation caused by raw material extraction processes, and mitigating potential adverse effects on agriculture.

In the cement sector, waste management involves handling hazardous, toxic, and production-related waste while utilizing waste from other industries as alternative fuels to reduce reliance on fossil fuels such as coal. It also covers minimizing waste at the source, repurposing waste as alternative raw materials or energy sources, reusing construction and demolition waste as cement raw material, expanding recycling and reuse opportunities, and ensuring safe disposal processes. In addition, it includes the collection, transportation, and environmental impact mitigation of waste at cement production plants and within integrated waste management systems.

Developing innovative and sustainable products and solutions that reduce environmental impacts and align with circular economy principles is a key focus. This includes designing low-carbon cement and concrete products, increasing the use of recycled materials, and adopting energy-efficient production processes. Furthermore, reducing the clinker ratio in cement production to minimize environmental impact and developing innovative low-carbon products are critical components of this approach.

Water management across cement production processes and the entire value chain involves assessing watershed-based impacts of water consumption, managing wastewater and process water, and implementing water recycling and reuse strategies. It also includes managing and mitigating water-related risks, such as potential ecological impacts of wastewater discharge and proactive measures to address drought risks.

Ensuring full compliance with product quality standards and safety requirements, including chemical safety, is essential. This includes adherence to technical standards for cement production, consistency in its chemical and physical properties, and ensuring its safe usage.

Promoting a business approach based on ethical principles such as integrity, transparency, reliability, and accountability, while ensuring full compliance with environmental and social standards under legal regulations and industry requirements, is a key priority.

Preventing discrimination based on gender, age, ethnicity, religion, or sexual orientation and ensuring equal opportunities for all are fundamental commitments. This entails fostering a fair and inclusive environment both in the workplace and in society. Also, this area includes initiatives and goals aimed at advancing gender equality.

It covers the management of air emissions, excluding greenhouse gases, across operational processes and the supply chain, along with emissions resulting from operational activities and supply chain sources. This topic considers the impact of pollutant loads on air and soil, aiming to minimize environmental effects. This involves minimizing environmental impacts, improving air quality, and identifying opportunities to mitigate pollution effects.

In the building materials sector, R&D and innovation involve developing innovative solutions for product design, manufacturing, and operational processes. These efforts focus on enhancing energy and raw material efficiency, developing low-carbon production techniques, utilizing alternative fuels and raw materials, improving product performance, and reducing environmental impact. Additionally, research and development of emerging technologies such as Carbon Capture, Usage, and Storage (CCUS) to support decarbonization processes are also included within this scope.

Respecting and protecting fundamental human rights for employees and business partners across the supply chain is a key priority. Preventing human rights violations such as discrimination, forced labor, and child labor in the workplace, as well as ensuring safe, healthy, and fair working conditions, are fundamental commitments. This also includes fostering an equitable work environment that supports employees' rights, including the freedom to join trade unions. Furthermore, proactively identifying, monitoring, and mitigating human rights risks through well-defined policies is a crucial aspect of this framework.

Understanding and meeting customer needs and expectations involves strategies focused on delivering high-quality products and services to enhance customer satisfaction. This includes maintaining clear and effective communication, ensuring transparency, implementing fast and responsive feedback mechanisms, and providing technical support. Additionally, prioritizing sustainable and innovative solutions to create customer value, along with regularly reviewing and improving processes based on customer feedback, plays a crucial role in this approach.

The company is also committed to contributing to society by developing projects that have a positive impact on local communities. This involves assessing the social, economic, and environmental effects of its operations and taking proactive steps to enhance these impacts. Furthermore, ensuring public health and safety by minimizing environmental risks and supporting the development of safer living spaces remains a key focus.

The development of initiatives aimed at enhancing employee satisfaction, performance, and well-being focuses on improving their overall experience in the workplace and increasing employee engagement. This includes creating a supportive environment and offering opportunities for personal and professional growth, ultimately contributing to higher levels of employee satisfaction and commitment.

Inclusive development seeks to create long-term shared value for all stakeholders while ensuring financial stability. By embracing an inclusive growth approach, it guarantees that the benefits of financial progress are distributed fairly and equally across all segments of society. This approach supports the integration of financial profitability with social and environmental sustainability.

Digital transformation encompasses the enhancement of all business processes, from production to logistics, through the integration of digital technologies. This transformation process leverages solutions such as smart factories, automation systems, data analytics, and artificial intelligence to increase energy efficiency, reduce operational costs, and optimize resource usage.

It underscores the significance of maintaining regular and constructive communication with various stakeholders, including customers, employees, suppliers, local communities, non-governmental organizations, and public authorities. Furthermore, it involves the continuous improvement of the company’s environmental and social performance in response to stakeholder feedback.

Responsible procurement practices aim to ensure compliance with environmental, social, and ethical standards throughout the supply chain. This includes encouraging suppliers to adhere to workers' rights, environmental sustainability, and ethical business practices. Furthermore, it focuses on supporting local suppliers in the selection of raw materials, materials, and services, reducing the carbon footprint, prioritizing resources that align with circular economy principles, and ensuring traceability throughout the supply chain.