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, “Respecting the World, Respected Worldwide", 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. 

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 Sustainability Council is the highest unit responsible for all environmental management issues. The Council’s work is supported by the Environmental, Energy, Green Chemistry, Climate Change, Sustainable Supply Chain and Occupational Health & Safety Working Groups. The strategies and goals of the Council are examined and implemented by the Climate Change Working Group which consists of the Director of Quality, Sustainability and Corporate Affairs, the Managers of the Environment and Energy, Environment and Energy Specialists and Production Managers. Responsible for integrating climate crisis efforts, the Group meets quarterly and ensures that all work complies with Arçelik’s strategies, policies and legal regulations. 


Arçelik Sustainability Council is led by the CFO. The Council consists of the executive management team including the COO (Chief Operations (Production & Technology) Officer), CSO (Chief Strategy & Digital Officer), CCO, CMO, Finance Director, Strategic Planning Director, Human Resources Director, Customer Services Director, Global Communications Director, Quality, Sustainability and Corporate Affairs Director, Global Customer Care Director, R&D Director, Purchasing Director. The Sustainability Council meets biannual.


Arçelik’s Sustainability Council and the Climate Change Working Group identify policies and strategies regarding sustainability and the climate crisis, from which we establish collaborations, ensure that decisions taken are implemented, and track performances to make sure targets are met. All work carried out in sustainability is regularly reported to the member of Board of Directors, Koç Holding Head of Durable Consumer Goods Group, who gives a report to the Board of Directors every four months. These reports are discussed and finalized by the Board of Directors.


Arçelik Environment Manager (Central Environment Management Department), who directly reports to Quality, 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.

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.

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.)

Please click here to see Arçelik Environmental Policy. 

Environmental performances of Arçelik's plants are monitored monthly with the environmental performance report and reported to the top management every three months. The continuity of EMS is controlled by internal audits and the audit results are shared with top management in management review meetings.

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,

•          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 and its amendment (EU) 2015/863 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.

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. In 2019, 48% of Arçelik’s revenue was generated through the sale of energy efficient products.

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 Quality, 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 and COP23. 

Arçelik attended UN Climate Change Conference COP24 and represented Turkey.

Arçelik represented Turkey in events organized by the Ministry of Environment, Urban Planning and UNEP in COP21, COP22, COP23, COP24 and COP25.

Arçelik listed in Borsa Istanbul Sustainability Index for the 6th consecutive year and in the MSCI Global Sustainability Index Series with the highest grade AAA in 2019. Furthermore, we have been listed in the FTSE4Good Emerging Markets Index by FTSE Russell at the London Stock Exchange since 2016.

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 and 2017, 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 third time in 2014, 2016 and 2017.

In 2017, Arçelik received the "A performance score" in both CDP Climate and CDP Water and entered to Global A List in both programs, and became one of the 25 companies in the world that achieved this success.

In 2018, Arçelik ranked among the companies with the highest score in Turkey in both CDP Climate Change and Water Programs and was awarded with CDP Turkey 2018 Climate Leadership. In 2018, Arçelik was rated with B performance in the CDP Water Program, one of the most important and most widespread environmental initiatives in the world.

In 2019, we became one of the companies to receive the highest degree in the Climate Program in Turkey by getting an A-degree. In 2019, Arçelik was rated with B performance in the CDP Water Program, one of the most important and most widespread environmental initiatives in the world.

Arçelik CDP Climate Report 2019 can be found here.

Arçelik CDP Water Report 2019 can be found here

Click hereto see AA1000AS verification statement of Arçelik A.Ş. water withdrawal data of Turkey, Romania, Russia, China, South Africa and Thailand operations and waste data of Turkey operataions reported in Sustainability Report 2019.

Environmental Targets

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

Please click here to see Arçelik's 2023, 2025 and 2030 Targets.

  To reduce average water withdrawal per product in its Turkey, Romania, Russia, China and South Africa operations by 52% as of 2020, in comparison with the base year of 2012.

 To reduce its average hazardous waste per product in its Turkey, Romania Russia, China and South Africa operations by 11% as of 2020, in comparison with the base year of 2012. (By the end of 2018, hazardous waste per product in Turkey, Romania, Russia, China and South Africa operations was reduced by 34% and the target for 2020 was accomplished. Therefore, the hazardous waste per product target was closed.)

 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, Russia, China and South Africa operations 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 become carbon-neutral in production in Turkey 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. 15.9 million m3/year water in 2019.

Arçelik aims to fulfil closed-loop approach within all of 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. 

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.

Since 2014, when our plants started their operations, to 2019, we have saved a total of 299 GWh of energy, or in other words, the daily electricity consumption of about 36 million households, by preventing old products from consuming high levels of energy from the grid. This amount is equivalent to the annual energy production of 46 wind turbines each with 2.5 MW capacity. In addition, we have prevented approximately 143,000 tons of CO2 emissions by recycling waste products. Furthermore, we have saved 6.2 million tons of water by replacing old-tech products with new eco-friendly ones. This amount is equivalent to the daily water consumption of approximately 7.6 million households. We recycled approximately 1.2 million WEEE units between 2014 and 2019 in our WEEE recycling plants in Eskişehir and Bolu.

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%.

We comply with the Basel Ban Amendment to the Basel Convention and perform responsible recycling of WEEE in each country.

 

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.
  • Arçelik won Recycled Plastic Consumer Lifestyle Product of the Year in Europe with Grundig Recycled Vacuum Cleaner whose plastic materials were recycled by 90%.

  • Our achievements in Waste Electrical and Electronic Equipment (WEEE) management and the Zero Waste Project were awarded the Zero Waste Private Sector Award by the Republic of Turkey, Ministry of Environment and Urbanization.

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 the energy efficiency projects carried out in 2019, total direct and indirect-energy greenhouse gas emissions were reduced by 70%, as against 2010 in Turkey operations.

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 TRY 119 million in Turkey operations and 1,037,000 Euros in Romania operations and 642,000 Euros for South Africa operations were allocated to the research and development studies for environmentally friendly products in 2019.

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.

Improvement of 1.6% was achieved in the average energy consumption of all cooking appliances in Turkey operations in 2019, thanks to the energy efficiency studies for products. In the same period, improvement of 7.7%, 5.8%, and 2.8% were achieved in the energy consumption of all TVs, washing machines, and refrigerators, respectively. During the reporting period, total savings of 277,813 GJ are achieved in annual energy consumption of the products produced in all plants in Turkey compared to the previous reporting year.

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%.

Please see Arçelik's Sustainability Report 2019 to see our energy efficient environmentally friendly products produced in 2019.

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 works intensely to reduce environmental impacts by expanding its competency not only in its own organization but also in its value chain.In this context, 12,758 employees were given 18,505 person-hours, and 2,509 subcontracted company employees were given 4,592 person-hours of environmental training. On the topic of social responsibility, 81 people were given 234 person-hours of training.

 

The importance Arçelik attaches to environmental management is supported with investments on the relevant subjects in the term of employment. In this regard, TRY 25.5 million in Turkey operations and 2.4 million Euros in foreign operations were allocated to environmental protection and investment expenditures in 2019.

 For the detailed and comprehensive information about the environmental management in Arçelik, please see Arçelik A.Ş. Sustainability Report 2019.

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.

Awards and Successes in 2019

  • As the first and only industrial company from Turkey to be included in the Dow Jones Sustainability Index (DJSI) Emerging Markets category for three consecutive years, we were also selected as the Industry Leader in the“Household Durables” category in 2019.
  • We received the SAM Gold Class Award and were included in the Sustainability Yearbook 2020. In each sector covered in the DJSI, companies with a total score of at least 60 and whose score is within 1% of the best performing company in the industry are awarded the SAM Gold Class Award.Since 2016, we have been included in the FTSE4Good Emerging Market Index where companies that have strong environmental, social, and governance performance are measured by FTSE Russell of the London Stock Exchange.
  • In 2019, we were rated AAA (AAA-CCC scale) on the MSCI Sustainability Index.
  • By receiving an A- in the Carbon Disclosure Project (CDP) 2019 Climate Program, we became one of the Turkish companies to earn the highest score in this program.
  • We are listed in the Borsa Istanbul Sustainability Index for the 6th time in a row.
  • Our Arctic Ulmi washing machine factory was included in the World Economic Forum (WEF) Global Lighthouse Network.
  • We were awarded the Zero Waste Private Sector Award by the Republic of Turkey, Ministry of Environment and Urbanization.
     

For the detailed and comprehensive information about the environmental management in Arçelik, please see Arçelik A.Ş. Sustainability Report 2019.

 

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Arçelik A.Ş. Sustainability Report 2017