Environmentalist Approach in Products and Production

With a "sustainable development" approach, ARÇELİK A.Ş aims to develop and market products that are resource and energy efficient technologically innovative in design and easy to use, while also fulfilling its commitment to work on solutions against future threats such as drought, global warming, diminishing natural resources.

Thanks to its new vision, “Respects the Globe, Respected Globally", ARÇELİK A.Ş integrates its "sustainability" approach to its main business operations. Main business goals determined in line with its new vision represent three aspects of sustainability in economic, environmental and social dimensions.

Targeting “to take part in solution” within the framework of sustainability approach, ARÇELİK A.Ş. maintains its efforts oriented towards climate change and protection of restricted natural resources.

In ARÇELİK A.Ş, reducing environmental impact throughout all the stages of manufacture, production processes are highly energy-efficient and consume less of natural resources.

To leave climate change respected, clean and healthy environment to the next generations, ARÇELİK A.Ş regularly monitors its own environmental performance by determining environmental aims and objectives to control environmental impacts and limit resource utilization.

ARÇELİK A.Ş's environment-friendly approach has been achieved as a result of constant control on environmental impacts throughout “the product’s life cycle”, the technological superiority that the company has attained and the management systems that it has implemented. ARÇELİK A.Ş implements ISO 14001 Environmental Management System (EMS) integrated with ISO 9001 Quality Management System (QMS) and ISO 50001 Energy Management System (EnMS).

ARÇELİK A.Ş initially received BS 7750 Environmental Management Systems Standard in 1994 for its Dishwasher Plant just two years after it was introduced as the first Environmental Management Standard of the world. Afterwards, upon BS 7750 Standard’s recognition as ISO 14001 in 1996, ARÇELİK A.Ş has started to apply ISO 14001 Standard of Environmental Management System.

ARÇELİK A.Ş. calculates the Greenhouse Gas (GHG) emissions sourced by its facilities by using IPCC-2006 and in accordance with ISO 14064-1 GHG Standard. ARÇELİK A.Ş.'s GHG values have been verified by an independent body in “reasonable assurance level”, since 2010. GHG audits for Arçelik GHG emission in 2015 have been completed in June 2016.

 In 2012, ARÇELİK A.Ş. has also been certified by an independent international body in accordance with ISO 50001 Energy Management System Standard for its operations in Turkey to manage and use energy efficiently.

The efficiency and continuity of management systems are assured by Internal System Audits carried out regularly as well as the inspections by independent organizations.

ARÇELİK A.Ş.’s environmentally responsive approach starts from design to product lifecycle. With its sustainable business approach which integrates environmental and social issues in all its business processes, ARÇELİK A.Ş. has become a finalist in the “Management” category within the frame of the “European Business Awards for the Environment - European Programme”, in 2010.

ARÇELİK A.Ş.’s sustainability approach is to consider social, economic, environmental and ethics aspects into its activities, to integrate these aspects into its corporate business targets, to manage its activities in accordance sustainability principles, corporate policies and strategies. ARÇELİK A.Ş. assesses sustainability and climate change related risks and opportunities and stakeholder expectations as its main inputs.

Arçelik is a member of International Chamber of Commerce and Turkish Sustainable Development Association (SKD) which is a direct member of WBCD. Also, Arçelik is in collaboration with UNEP for U4E project.

The highest level of direct responsibility of sustainability (incl. also environment) and climate change efforts is Sustainability Council. Arçelik Sustainability Council is comprised of the full executive board, including the COO (Chief Operations (Production&Technology) Officer), CFO, Assistant General Manager - Turkey Trade, Finance Director, Strategic Planning Director, Human Resources Director, Customer Services Director, Innovation Director, Corporate Communications Coordinator, Sustainability and Corporate Affairs Director.

The head of Sustainability Council is CFO and the General Secretariat of the board is Sustainability & Cooperate Affairs Director. Sustainability & Cooperate Affairs Director directly reports to CFO. The Sustainability Council meets biannual.

Duties and responsibilities of the Sustainability Council are:

·         Specifying the corporate policies and strategies about corporate sustainability principles and climate change

·         Following the consolidation of corporate business process with specified sustainability and climate change policies and strategies, provide integration to corporate business targets

·         Evaluating corporate risks and opportunities in scope of sustainability principles and policies, make strategic decisions and manage prior risks and opportunities

·         Identifying KPIs and targets of sustainability and climate change related issues

·         Following the global developments on sustainability and climate change issues, to build the company strategies according to these developments

·         Encouraging collaboration with NGOs, public enterprises, universities on sustainability and climate change issues

·         Defining the strategic framework and decisions of the external sustainability assessment and rating tools (CDP, BIST SI etc.) and follow up the results

The sustainability working groups are established to control and coordinate of the sustainability and climate change implementations. The members of sustainability working groups consist of environmental and energy specialists (Environmental Engineers, Mechnical Engineers, Energy Managers) and/or managers responsible for sustainability issues.

Arçelik Sustainability Working Groups (WG) are; Environmental Coordination WG, Energy Coordination WG, Climate Change Coordination WG, Green Chemistry Coordination WG, Health & Safety Coordination WG, Human Rights & Business Ethics Coordination WG, Value Chain Coordination WG, Sustainability Reporting WG.

Arçelik Environment Manager (Central Environment Department), who directly reports to Sustainability and Corporate Affairs Director, manages environmental sustainability management related issues and leads Environmental Coordination WG, Climate Change Coordination WG and Green Chemistry Coordination WG.

These groups report to the Sustainability Council members. Duties and responsibilities of sustainability working groups are:

·         Providing conformity of all activities in sustainability working groups to corporate strategy, policy and sustainability principles.

·         Implementing decisions of Sustainability Council.

·         Implementing the sustainability as a main strategy in related processes

·         Developing and reporting proactive solutions for the companies sustainability and climate change related risks and opportunities, share best practices

·         Preparing and/or coordinate action plans for sustainability and climate change targets, follow the progress against targets, reporting performance monitoring and KPI results

·         Recommending a roadmap related to sustainability and climate change operational issues

 

·         Prepare and present the reports of external sustainability assessment and rating tools (CDP, BIST SI etc.)

 

ARÇELİK A.Ş. Environmental Policy

ARÇELİK A.Ş. and its employees comply with all applicable national and international environmental laws and regulations; manufacture environment-friendly products in line with environmental management system based on continuous improvement and sustainability principles.

We perform our activities to;

•          inherit a climate change respected, clean and healthy environment to the new generations,

•          use energy and natural resources efficiently,

•          minimize the adverse environmental impacts of products and production through product life cycle,

•          prevent pollution at the source,

•          prioritize climate change and sustainability in all activities,

•          raise environmental awareness of our employees and the society

accompanying the Quality, Health and Safety and Energy Management Systems and we strive to set a model in durable goods sector with regard to environmental efforts.

 

Compliance with National and International Environmental Regulations

ARÇELİK A.Ş. complies with all applicable national and international environmental regulations during the entire production processes as well as entire “life cycle of the product” from design to recycling. Compliance with legal regulations is monitored through ISO Standard for Environmental Management System.

Thanks to its strength legal requirements compliance management system, ARÇELİK A.Ş. has neither monetary fines nor non-monetary sanctions indicating non-compliance with environmental laws and regulations.

Through international regulations, ARÇELİK A.Ş. exactly complies with the following European directives:

•          WEEE – Directive on Waste Electrical and Electronic Equipment,

•          RoHS – Directive on the Restriction of the Use of Certain Hazardous Substances in Electrical and Electronic Equipment; and the significant amendments planned by European Union,

•          EuP – Directive on Ecodesign Requirements for Energy-Using (Related) Products

•          REACH – Regulation of the Registration, Evaluation, Authorization and Restriction of Chemicals.

 

 

 WEEE - Directive on Waste Electrical and Electronic Equipment

In February 2003, European Union issued WEEE I Directive 2002/96/EC regulating reuse, recycling, recovery and disposal of the products introduced to the market by electrical and electronic product manufacturers. Then, the WEEE II (Recast) Directive was issued on July 24, 2012, and the new directive entered into force in August 13, 2012. It is obligatory for European Union countries to convey this new WEEE Directive (2012/19/EU) to their national legislations until February 14, 2014.

To comply with WEEE Directive in EU countries, Arçelik Group fulfills its legal obligations through the mechanisms of collection and recycling. Arçelik Group is a member of many collection systems which collect and dispose the products at the end of their economic lives. Arçelik Group supports the harmonization of the WEEE Directive in the non-EU countries as well. In the meantime, it makes necessary arrangements for compliance with WEEE II (Recast) Directive.

"Waste Electrical and Electronic Equipment Control (WEEE) Regulation" was promulgated in the Official Gazette dated May 22, 2012 and No. 28300 in Turkey.  Arçelik A.Ş. is conducting necessary studies in order to perform its obligations within the framework of the WEEE Regulation.

In 2014, Arçelik A.Ş. established two recycling plants in Bolu and Eskişehir within the scope of WEEE (Waste Electrical and Electronic Equipment Control Regulation) and became the company to minimize the environmental impacts during the product life cycle in the industry. The recycling plant in Eskişehir is the first recycling plant in Turkey which meets all technical requirements required for the plants to operate refrigerator/coolers/air conditioners and which has the ability to collect the CFC (chlorofluorocarbon) gases harmful to the ozone layer that exists in old refrigerators.

 

RoHS - Directive on the Restriction of the Use of Certain Hazardous Substances in Electrical and Electronic Equipment

Put into effect for European Union member countries in 2006, RoHS Directive 2002/95/EC restricts the use of certain hazardous substances in electrical and electronic equipment.

Performing necessary tests within the company and at accredited laboratories, Arçelik A.Ş. has achieved full compliance even before the effective date of the directive by establishing the Compliance Management System to ensure that the suppliers are in compliance with this directive.

Furthermore, infrastructure works have been performed and Arçelik A.Ş. has complied with the 2011/65/EU RoHS Recast Directive which superseded the 2002/95/EC directive on January 2, 2013.

 

Ecodesign Framework Directive for Energy-Related Products

Ecodesign Framework Directive for Energy-Related Products by European Commission aims to improve environmental performance of the products through their entire “product life cycle” by systematically integrating environmental characteristics even from the initial stages of design. Arçelik A.Ş. manufactures its products in compliance with this EU Directive. The abovementioned directive was promulgated and became effective in Turkey on 07.10.2010. Arçelik A.Ş. closely collaborated with the Ministry of Science, Industry and Technology during the issuance of this directive.

 

 REACH - EU Regulation on Registration, Evaluation, Authorization and Restriction of Chemicals

One of the most extensive legal regulations of EU which is effective since 2007, REACH Regulation regarding the registration, evaluation, authorization and restriction of chemicals sets liabilities through all stages of production and distribution chain from manufacturers of raw materials to the retailers.

Arçelik A.Ş. adopts and supports REACH Regulation as one of their most important legal procedures to protect the environment and human health as the Regulation aims to ensure the flow of necessary chemical safety data of all chemical substances from their manufacturer to the user industry and the availability of this flow to the consumers. At Arçelik A.Ş., REACH applications are followed and carried out by an expert team. All necessary preparations are coordinated by this unit and constant communication is maintained with the suppliers, which ensure the development of a perfectionist process in compliance with the REACH Regulation. Detailed information about the operations of Arçelik A.Ş. concerning REACH can be obtained from reachinfo@arcelik.com.

 

Energy Efficiency Law and Regulation on Energy Efficiency in the Use of Energy Resources and Energy

Within the scope of “Energy Efficiency Law” no. 5627 which was promulgated in 2007 and basically aimed to use the energy efficiently, prevent the wastage, minimize the burden of the energy costs on the economy and increase the efficiency in energy use and energy resources for the protection of the environment, Arçelik A.Ş. employs engineers who participated in “Energy Manager Certification Program” carried by an authorized institution or YEGM (General Directorate of Renewable Energy) in its plants with higher energy consumption values than the declared limit. Many energy efficiency projects are carried out each year under the coordination of the energy managers and production-based energy consumption is continuously reduced. Similarly, as stipulated in the energy efficiency law, Arçelik A.Ş. plants officially declare their energy consumption details in March every year.

Arçelik A.Ş. has been the first company to comply with international directives on environment and energy much earlier than they were integrated in Turkish legislation.

Considering the environmental impacts of the products, energy consumption comes into prominence. In line with EU directives on electrical and electronic household appliances, Arçelik A.Ş. designs and manufactures low energy consuming products. Highly energy efficient products were launched in Turkey much earlier than the said EU eco-design directives were integrated into Turkish legislation.

Arçelik A.Ş. was also the first Turkish household appliances company to produce refrigerators (in 1995) without ozone depleting CFC gases much earlier than 2006, deadline set for Turkey in Montreal Protocol.

Arçelik A.Ş. uses refrigerant gases not harmful to the ozone in all refrigerators produced in its plants. 37 million refrigerators were manufactured in total by the end of 2014 with refrigerant gas (R600a) based on hydrocarbon that is environmentally friendly, not harmful to the ozone and has the lowest impact on the global warming (lowest greenhouse gas impact).

Arçelik A.Ş. prioritizes the energy efficiency in the products and manufactures products more efficient than the most efficient energy class defined in the energy label. It developed 30% more efficient refrigerator than A+++ energy class and put into use the 50% more efficient washing machine than A+++ energy class. It manufactured products 10% more efficient than A+++ energy class in dishwasher and dryer. As a result of the sustainable R&D efforts, it brought an oven design that is 45% more efficient than A energy level.

International Energy Agency (IEA) declared that online electronic devices used throughout the world wastes the electric power for about 80 billion dollars each year. Thanks to the activities reducing the power consumption on the products within the fame of compliance with the regulation related to Standby between 2009-2013, Arçelik A.Ş. made contributions to the country's economy and environment by making saving equivalent to the total energy to be consumed by about 850 thousand A energy class refrigerators in a year.

Arçelik A.Ş., supported Efficient Appliances and Equipment Global Partnership Programme led by UNEP, contributing to the programme for its preparatory phase. UNEP and Arçelik partnership will be the first of its kind for Arçelik, globally. In line with this corporate commitment, Arçelik A.Ş. and Defy Appliances Ltd., Arçelik’s subsidiary in South Africa, will support development of estimates on the benefits and policy status of the transition to energy efficient household refrigerators, particularly in the Republic of South Africa. Arçelik and Defy will also contribute to the development of performance standards, monitoring and verification schemes, test methods and the installation of test facilities for energy efficient refrigerators and give support to the global action campaign to promote the global transition to energy efficient refrigerators.

Adopting the principle of environmental approach through the product’s life cycle, Arçelik A.Ş. will continue to carry out its activities in full compliance with legal regulations concerning the protection of the environment, as it did in the past.

Arçelik A.Ş. makes necessary contributions for combating climate change. The company is a member of the Climate Platform in Turkey and serves as the spokesperson and leader of this organization. Arçelik A.Ş. has signed the “'2°C Communiqué” which draws attention to the efforts made for climate change.

Arçelik former CEO has been the President of the Turkish Corporate Leaders Group on CC, he represented Turkey in the World Climate Conference (WCC)  2012. Having also participated in the World Climate Summit held in Warsaw 2013.

Arçelik also actively participated in work groups at the Ministry of Environment and Urbanization ahead of the WCC realized in Lima in 2014.

Arçelik also participated in the WCC held in Paris and represented Turkey in 2015.

Arçelik represented Turkey in two different panel sessions in COP21. In “Focus on initiatives - Fuel Efficiency and Appliances” session organized by SE4All Initiative of UN and World Bank(WB), Arçelik CCO for Global Sales, Mr. Ragıp Balcıoğlu, attended as a speaker. Mr. Fatih Özkadı, Arçelik Sustainability and Corporate Affairs Director, attended as a speaker in “The Game Changer - Interactive Energy Efficiency Accelerator” titled panel hosted by U4E initiative of UNEP and GEF. Arçelik represented Turkey at 2 events organized by the Ministry of Environment, Urban Planning and UNEP in COP22.

Arçelik listed in Borsa Istanbul Sustainability Index for the 3rd consecutive year and in the MSCI Global Sustainability Index Series with the highest grade AAA for the 2nd time.

Arçelik CEO, Mr. Hakan Bulgurlu, attended the "Dialogue for Climate Action" event in Vienna in May 2016, which was launched by the World Bank in order to increase dialogue on this matter, within the frame of COP21 goals. Arçelik signed 'The Principles for Dialogue on Climate Action' in scope of this event.

Arçelik made commitments to «Paris Pledge for Action» of Cambridge University and “Responsible corporate engagement policy” of “Road to Paris 2015 Project”.

The most reputable and known environment initiative of the world, CDP reports how the climate change, water and deforestation risks are managed by the companies in a global scale and discloses such information to the public and international investors. Arçelik A.Ş. won "Turkey’s Carbon Disclosure (CDP) Leader" award in 2012 and Arçelik furthered this success by receiving "Climate Performance Leaders in Turkey" award in 2013 within the scope of CDP's activities in Turkey. In 2014, Arçelik entitled to be listed in global "The A List: The CDP Climate Performance Leadership Index 2014". by achieving the A performance score that is the highest degree in CDP. In 2015, for the 4th time Arçelik is ranked among CDP Turkey 2015 Carbon Disclosure Leaders. In 2016, Arçelik A.Ş. was entitled to enter the CDP The Global A List CDP Climate Performance Leadership Index.” Hence, it became the first Turkish industrial company ever to be entitled to join the list twice in 2014 and in 2016.

Arçelik A.Ş. has reported to CDP Water this year. Click here to see Arçelik A.Ş. CDP Water Report.

 

Environmental Targets

ARÇELİK A.Ş.’s environmental targets are explained below:

  To reduce average water withdrawal per product in its Turkey, Romania and Russia operations by 35% as of       2020, in comparison with the base year of 2012.

 To reduce its average hazardous waste per product in its Turkey, Romania and Russia operations by 5% as       of 2020, in comparison with the base year of 2012.

 To increase its waste recycling rate in Turkey operations to 98% by 2020.

  To follow developments in energy investments and continue feasibility studies.

 To reduce its energy consump on per product in Turkey, Romania and Russia opera ons by 45% in 2020, as        against the base year of 2010.

 To establish a renewable power plant with a total capacity of 6 MWp, by the end of 2020. 

 To increase the share of the supply of electricity generated from renewable energy resources to 100% in its         Turkey campuses as of 2020.

 To become completely carbon-neutral in manufacturing by 2025.

  Ensuring continuity of the following certificates: ISO 14001 Environmental Management System, ISO 14064- 1 Greenhouse Gas Inventory Reporting Standard and ISO 50001 Energy Management System.

  Executing and further developing integrated waste management operations

  Undertaking studies for resource efficiency

  Conducting environmental awareness raising activities for the dissemination of environmental awareness throughout Arçelik.

Closed-loop Production Methods

Arçelik A.Ş. conduct works to reduce water consumption in its production processes, and designs processes focused on the recovery of used water.

In line with this approach Arçelik continuously reduces both water consumption and the amount of water discharged.

With the closed loop systems of cooling towers, chillers etc. in the plants, Arçelik A.Ş. saved approx. 15.8 million m3/year water.

Arçelik aims to fulfil closed-loop approach within all pf its plants.

 

Restriction of Hazardous Substances

Arçelik A.Ş. follows closely and complies with all related international and national chemical management regulations, directives and standards in line with its Environmental Policy. REACH (Registration, Evaluation, Authorization and Restriction of Chemicals) and ROHS (Restriction of Hazardous Substances in Electrical and Electronic Equipment) are the examples of these regulations.

Arçelik A.Ş. ensures its compliance to chemical regulations and standards via “Arçelik Chemical Compliance Specifications”. All of the suppliers are required to supply materials/components in conformance with the Specifications.

Chemical Management studies related to Restricted/Hazardous Substances are followed and performed by Green Chemistry Coordination Committee which is a sub-group of Arçelik Sustainability Working Groups.

 

 Recycling

As an indicator of the strategy to become a Green Company, Arçelik Group carries out its activities within the framework of “Extended Producer Responsibility” and taking into account the principles of sustainability. In this context, Arçelik Group manages in a structure of reducing the environmental impacts of waste management activities and implementing resource efficiency as the priority principle. With this purpose, Arçelik Group designs its products to evaluate as resource and to return to the nature when the end of their useful lives. Arçelik Group prevents wastes at source when producing its products, if this cannot be prevented minimizes the wastes by implementing the principles of integrated waste management. This is the important step of Arçelik Group’s environmental management strategy.

 

The products produced by Arçelik Group, becomes waste electrical and electronic equipment (WEEE) when product is in the end of its useful life. Arçelik Group established its own recycling facilities within the scope of Extended Producer Responsibility to encourage evaluating the products as resource and to return products to the nature. Arçelik Group has lead the sector with the launching of WEEE management practices and has been a pioneer.

 

WEEE Recycling Facilities

Pursuant to its vision, “Respects the Globe, Respected Globally” Arçelik Group established WEEE recycling facilities in Eskişehir and Bolu, in accordance with WEEE Directive and Regulation for Waste Electrical and Electronic Equipment Control. Arçelik Group is pioneer in this field with its activities and is also the only company which is both manufacturer and owner of such a facility in its sector.

 

Refrigerators, coolers and air conditioners (first category in WEEE Regulation) are recycled in our Eskişehir WEEE recycling facility licensed by the Ministry of Environment and Urbanization. This is the first recycling facility in Turkey with the capacity to collect CFC (chlorofluorocarbon) gases that are ozone depleting or have a global warming potential (GWP) above 15, harmful to the ozone layer, found in old refrigerators, through a closed system.

At the other licensed recycling facility established in Bolu, large white goods other than refrigerators, freezers and air conditioners (second category), as well as small household appliances (sixth category) are recycled.

Turkey’s largest renewal campaign with slogan of "Let's return to nature" was launched first in 2014, regarding the aim of collection of WEEEs in order to gain the environment and the national economy. Another renewal campaign was implemented also in 2015. Recycling is encouraged with our sales campaigns and also sustainable business models are produced.

At the WEEE exchange campaign, the WEEEs collected by the Arçelik and Beko dealers and authorized services were transferred to the licensed recycling facilities. The materials obtained from recycled WEEEs in facilities are gained to the economy in accordance with the concept of “Resource Efficiency” as secondary raw materials.

Arçelik Group is the first company which established two recycling facilities in its sector to mitigate environmental impacts throughout the product life cycle.

In Arçelik Group’s recycling facilities especially recycling of old and high electricity consuming refrigerators that contains chlorofluorocarbons (CFCs), provides a reduction of greenhouse gas emissions and contributes to the fight against climate change in our country with this way.  By the recycling of high energy consuming old products, we contribute to our country's energy efficiency.

Arçelik Group, started to work to prevent consumers to use of unsafe products through the recycling facilities and renewal campaign’s "Let's return to nature" motto. The market could be cleared from the second hand, unregulated products which are considerably hazardous for consumer health.

Arçelik Group performs WEEE recycling in its facilities which are in compliance with environmental legislation and modern, gives support to improve the quality of the recycling sector in Turkey without giving harm to environment and human health and also provides employment in this area.

From the engagement of the facilities in 2014 until the end of 2016, a total of 108.3 GWh of energy savings, equivalent to the daily electricity consumption of 14 million households, was achieved by preventing high energy consuming old products from consuming electricity. This is approximately equals to the prevention of 54,000 equivalent tons of carbon dioxide emissions. Most of this gain was ensured by means of recycled refrigerators. With the results that were achieved, a contribution, equivalent to the annual electricity consumption of 290,000 A+ energy class refrigerators, was made to the national economy. The energy gain achieved by means of the recycling at the two facilities until 2016 yearend is equivalent to the annual energy generation of 17 wind turbines with a capacity of 2.5 MW. In addition to this, 2.3 million tons of water was saved, thanks to the replacement of products with old technology with new, environmentally-friendly products. This amount is equivalent to the daily water consumption of 2.8 million households.

With the contribution of WEEE recycling facilities in Eskişehir and Bolu and the level of recycling, Arçelik Group was awarded the highest grade in its sector AAA rating in the MSCI (Morgan Stanley Capital International) Global Sustainability Index Series which is closely followed by international investors in the decision-making process.

Arçelik Group, works for transition to “Circular Economy” which is on the agenda in the European Union and based on the transformation of the waste to the source, also aims zero waste in this context by focusing on close to 100% recyclable product design. Depending on the type of products, recyclability ratio changes between 84-99%.

Recyclability of Our Products

 

Product

Status

Washing machines

99% recyclable

Condenser tumble dryers

98% recyclable

Refrigerators

99% recyclable

Dishwashers

84% recyclable

Electronic devices

88-92% recyclable

Ovens

91% recyclable

Rewards

•             As a result of its activities related to the Eskişehir and Bolu recycling facilities and its e-waste management system, Arçelik Group was awarded with the “E-waste Hero Award” which was given the first time e-waste management to increase awareness in Turkey, in March 2015 in Istanbul Electrical and Electronic the Summit.

•             Arçelik Group won the first prize in Waste Management Category with its “Leading Company in Waste Electrical and Electronic Equipment (WEEE) Management” project during “Sustainable Business Awards” organized by Sustainability Academy in November 2015.

      

Exceptional Life Cycle Analysis Policy (Product Impacts)

Arçelik conducts works to increase the efficiency of natural resource use, and realize integrated waste management practices to prevent waste generation at its source. Arçelik consistently increases the efficiency of our practices related to packaging waste management, and continues its works for the recycling of waste products which have completed their lifecycle. Arçelik continuously decreases the water consumption in our production processes through practices based on recycling and reuse, and designs high technology products that pioneer in our industry with regards to water saving. Through its integrated waste management practices, Arçelik increases its efficiency in raw material, material, water and packaging use; and continuously decreases its environmental impact with an approach that prevents waste generation at its source. Through studies we implement in accordance with the principles of reduction, reuse and recycling, Arçelik increases the recycling rate of wastes generated by our production processes, ensures the recycling of products that have completed their lifecycles.

In Arçelik, all environmental aspects and impacts through life cycle of a product are taken into consideration. Especially in production stages that occur at Arçelik plants are analyzed in detail to determine effects on the environment.

Environmental aspects and impacts of the activities in all production stages at Arçelik production plants are determined in detail. Defined aspects are evaluated and prioritized by using Arçelik Environmental Risk Assessment Methodology.

Impacts of processes on environment are classified in 7 categories as;

•             Air pollution

•             Water pollution

•             Soil pollution

•             Raw material consumption

•             GHG effects

•             Noise pollution

•             Odor

As a responsible producer, Arçelik cares about end of life of the products. Products under warranty are brought to Arçelik Reuse Centers to take out their reusable and valuable parts to reuse in the installation stage of production. Addition to this, Arçelik collects the old technology products and treats them into WEEE treatment plants. In Arçelik WEEE plants, reusable parts are separated from the product itself and sent to recycling and recovery centers when non-recyclable parts are sent to disposal. Environmental aspects and impacts of Arçelik Reuse Centers and WEEE plants also determined and evaluated according to Arçelik Environmental Risk Assessment Methodology.

With this, GHG emissions of Arçelik campuses are calculated every year and verified by an independent organization. Thanks to projects in Arçelik production plants, GHG emissions have been reduced around 55,6% in 2016 when compared with based year 2010 (based year for Arçelik GHG emission verifications).

 

Therefore, environmental impact assessment is performed before new investments.

 

Less Energy and Resource Consuming Technology

ARÇELİK A.Ş handles the issue of controlling environmental impact during products’ life cycles as a process starting from design stage. For this purpose, ARÇELİK A.Ş’s R&D and industrial design teams focus on product designs, technological studies, product development and improvement. These works result in high energy-efficient product series reflecting environmental-friendly product identity.

EC Directive sets recovery target as 80% for the large electrical and electronic household appliances. And thanks to the improved projects, our products’ recyclability ratio are; for washing machines: 99%, for condenser tumble dryers %98, for refrigerators 99%, for dishwashers 84%, for electronics 88-92%, for ovens 91%.

To ensure the protection of environment and human health, ARÇELİK A.Ş. has established lots of procedures based on legal regulations and Environmental Policy and has been manufacturing its products in full compliance with these procedures. As an example, ARÇELİK A.Ş. was the first home appliances manufacturer to produce the first CFC free refrigerator in Turkey 11 years before the actual 2006 deadline set for Turkey within the framework of the Montreal Protocol designed to limit the use of the substances depleting the ozone layer.

At Arçelik A.Ş, works aimed at reducing environmental impacts are not limited to production processes, instead acting with an approach that accounts for the whole lifecycle of products. By means of the R&D works conducted, the environmental impacts of products are consistently reduced, also achieving a significant competitive advantage with products that create difference. In this context, resources worth 45,005,703 TL were allocated to environmentally friendly product research and development works within the scope of Turkey operations, as well as 383,690 Euros’ worth in Romania operations and 5,729,497 Euros’ worth in Russia operations.

In 2015, in television production, the share of A++, A+ and A class energy efficient products in total production was realized as 99.8%. The level of energy consumed per unit product that was achieved in 2014 was also preserved in 2015.

Stand-by power consumptions were reduced to levels ranging between 0.12W and 0.29W, ensuring energy savings by 38.6% in stand-by power consumption through this improvement.

The annual average energy consumption per product was reduced by 0.3%** at our Cooking Appliances Plant, by 2% at our Washing Machine Plant, by 0.8% at our Dishwasher Plant, and by 6.6% at our Dryer Plant, as against the year 2014. While the share of high energy efficiency products in total production was increased at our Washing Machine Plant, the share of A class heat pumped products at our Dryer Plant increased from the level of 24.3% to 33.9%.

Some of the energy saving products produced in 2015 are as follows:

•         A+++ No Frost Cabinet Style Refrigerator

•         A+  Energy Class 90 cm Wall Type Hood

•         A+++ -30% Energy Efficient No Frost Combi Refrigerator

•         55” UHD A+ Smart TV

•         A++ Energy Class Built-in Oven

•         A+++ -70% Energy Efficient Washing Machine

•         75% Energy Efficient Cold Wash Program Washing Machine

•         A+++ -10% Energy Efficient Dryer Machine

Since 1995, energy consumption of refrigerator, washing machine, dryer, TV, dishwasher, oven are reduced in the ratios of 72%, 84%, 72%, 66%, 52% and 53%.

With EVÜdP (Market Transformation of Energy Efficient Appliances) project, EU ecodesign and energy labelling regulations for washing machine, dishwasher, oven, hob, hood, refrigerator, freezer, air conditioners, dryer and television implemented to Turkey in 2011 at the same time with EU.  Under the EU harmonization efforts, non-energy efficient refrigerator, washing machine and dishwasher are banned in 2011. In this way products are placed on the market as of today are 2 times more efficient compared to 2010. Thanks to the regulations put into force, 9 TWh of energy has been saved since 2011. For implementing EU regulations to Turkish legislation; coordination between Science, Industry and Technology Ministry and the producers have created.

 

Environmental Training

The key to enhancing Energy, Emission and Environmental management performance is well-informed employees with a high level of awareness. Our trainings cover not only regular employees but also our interns, subcontractors and employees working for the project period. Orientation trainings given to our employees and interns feature information on issues such as energy, emission and environmental management as well.

Arçelik A.Ş. provides periodical environmental trainings for its employees and employees of subcontractor companies it works with in order generalize its environmental sustainability approach within its organization and value chain. In this scope, 6,575 employees in Turkey operations were offered a total of 12,688 person*hour, and 416 subcontractor employees a total of 262.80 person*hour of environmental training in 2016. In the same period, 2,418 person*hour of environmental training was provided to 1,612 employees and 739.50 person*hour of environmental training to 493 subcontractor employees, within the scope of the Romania operation. Also in the year 2016, 334 person*hour of environmental training was provided to 348 Arçelik A.Ş. employees at our Russia operation.

 For the detailed and comprehensive information about the environmental management in Arçelik, please see Arçelik A.Ş. Sustainability Report 2016.

 

Supply Chain

At ARÇELİK A.Ş., Supply Chain planning operations focus on flexible production and delivery optimization to respond customer orders in the shortest possible time. Demand planning is made by basing on the volume of orders, and the products are manufactured right on time by determining the most appropriate resource via common systems; and the levels of customer service are monitored in detail.

Social and environmental approaches adopted by ARÇELİK A.Ş. are also guiding the operations of supply chain and taking place among strategic decision-making criteria.

In line with this principle, supplier locations and distribution warehouse points are determined by employing “Environment-friendly Network” to ensure the most efficient utilization of environmental shipping types and minimizing the greenhouse gas emissions arising from transportation.

70% of the export from Turkey is shipped by sea and after arriving in ports of destination, environment-friendly railways and water courses are preferred for all other destinations if applicable.

In regions requiring highway transportation, we are targeting to reduce the number of vehicles by maximizing their sizes and level of fullness. Railways are preferred as an alternative to highway transportation.

Besides, by performing the logistic operations with an approach of direct delivery to customers, unnecessary transportation and warehouse usage is eliminated.

 

Purchasing

 Within the framework of sustainable life, environmental criteria are defined for purchasing operations based on suppliers and the materials purchased; and compliance of the suppliers with the determined criteria are controlled.

Environmental compliance of the purchased materials are assured by regularly following industrial developments and integrating legal directives and regulations such as RoHS, WEEE and REACH into purchasing operations.

Environmental performance of the suppliers is evaluated by inspections and audits. The suppliers are encouraged to cooperate with R&D for the supply of materials and components needed for less resource consuming, more environment-friendly and innovative products, and the suppliers are expected to support design projects.

 

Consumer Services

 Within the scope of Consumer Services, the products are monitored through the entire process from sale at the authorized dealer to the installation at the consumer’s place via Central Distribution System. Emission of greenhouse gases is reduced by utilizing ideal number of vehicles with the support of vehicle tracking system.

Also vehicles with lower emission values are preferred at Authorized Services and Consumer Services for service works and continuous improvement in emission reduction is achieved by replacing vehicles older than 5 years.

When we consider the increasing need for efficient usage of energy, the Commercial Climatization increasingly becomes more significant for ARÇELİK A.Ş.

Beyond retail sales to end user customers in this area, B2B marketing and service infrastructure for decision makers are needed in professional channels.

To this end, ARÇELİK Air Condition Academy has been formed to provide theoretical and practical trainings for the sales experts, our personnel as well as our partners that consist of authorized dealers and services who works in after-sales services upon releasing the VRS Multi Ace System air conditions.

Service quality and efficiency have been increased by optimizing job distribution to technical personnel in the field with the use of hand-held computers in authorized services.

 

For the detailed and comprehensive information about the environmental management in Arçelik, please see Arçelik A.Ş. Sustainability Report 2016.

 

CONTENTS

Arçelik A.Ş. Sustainability Report 2012