CDP 2016 Climate Change 2016 Information Request · VESTEL ELECTRONICS is continue to impelement...

CDP CDP 2016 Climate Change 2016 Information Request

VESTEL ELEKTRONİK SANAYİ VE TİCARET A.Ş.

Module: Introduction

Page: Introduction

CC0.1

Introduction

Please give a general description and introduction to your organization. Operating in the fields of consumer electronics, white goods and information technologies with its more than 13,000 employees, Vestel Group of Companies (Vestel), which is the flagship of Zorlu Group, comprises of 29 companies, 13 of which are abroad. Vestel is one the largest consumer electronics and white goods producers in Turkey and Europe. The Company’s manufacturing facilities are located in Manisa, Turkey and Alexandrov, Russia. The Company enjoys economies of scale which results in productivity, efficiency, and cost advantages by undertaking the majority of its manufacturing within a single 600 thousand square meter area, namely Vestel City, the largest industrial complex in Europe. Vestel Elektronik was established in 1984 and is mainly engaged in production of televisions, set-top-boxes, display panels, touch screens, tablets,handphones, led lightings. The Company is among the leading ODMs ( Original Design Manufacturers ) in World Wide LCD TV market, as ranked #2 in Q4 2015, #2 in Q4 2014, #2 in Q4 2013 in the European Market (#8 in 2011, #4 in 2012), while enjoys being one of the three major players in the domestic LCD TV market with its well-known Vestel brand. The strategic importance given to R&D has a key role in Vestel’s ability to reach the fast rate of growth and strong competitive position the Company enjoys today. Vestel has improved its superior production technology and design development capability continuously though its team of 900 engineering professionals employed in its R&D centers. The Company is attracting increasing attention with its modern consumer friendly and innovative products. Vestel designs its products and manufacturing processes to maximize productivity, while making a special effort to protect the nature and raise environmental awareness. Vestel places its “friendly technology” concept at the center of its brand culture, strengthening its innovative power with consumer and environmentally friendly products. Underlying Vestel’s unique, pioneering designs and innovative products is the Company’s mission to leave a habitable world for future generations while envisioning the technology of the future. Vestel continually strives to minimize all negative impacts on the environment with its new products and targets to increase its R&D investments toward the direction of sustainable innovation.By producing world-class quality products, Vestel was listed among the “Top 250 Consumer Products Companies list” in Deloitte’s “Global Powers of The Consumer Products Industry 2015” report. Vestel conducts its business processes in accordance with ISO 14001 Environment Management System (EMS), which is integrated with ISO 9001 Quality Management System (QMS) and adopted to Total Quality Approach,since 1998.Vestel also certified its Energy Management System with ISO50001 since 2012. Vestel also implements Total Productive Maintenance (TPM) and Supply Chain Excellence (SCM) methodologies for cost reduction,quality and process improvement while increasing its competitive edge day by day through its flexible production structure.

CC0.2

Reporting Year

Please state the start and end date of the year for which you are reporting data. The current reporting year is the latest/most recent 12-month period for which data is reported. Enter the dates of this year first. We request data for more than one reporting period for some emission accounting questions. Please provide data for the three years prior to the current reporting year if you have not provided this information before, or if this is the first time you have answered a CDP information request. (This does not apply if you have been offered and selected the option of answering the shorter questionnaire). If you are going to provide additional years of data, please give the dates of those reporting periods here. Work backwards from the most recent reporting year. Please enter dates in following format: day(DD)/month(MM)/year(YYYY) (i.e. 31/01/2001).

Enter Periods that will be disclosed

Thu 01 Jan 2015 - Thu 31 Dec 2015

CC0.3

Country list configuration

Please select the countries for which you will be supplying data. If you are responding to the Electric Utilities module, this selection will be carried forward to assist you in completing your response.

Select country

Turkey

CC0.4

Currency selection

Please select the currency in which you would like to submit your response. All financial information contained in the response should be in this currency. TRY

CC0.6

Modules

As part of the request for information on behalf of investors, electric utilities, companies with electric utility activities or assets, companies in the automobile or auto component manufacture sub-industries, companies in the oil and gas sub-industries, companies in the information technology and telecommunications sectors and companies in the food, beverage and tobacco industry group should complete supplementary questions in addition to the main questionnaire. If you are in these sector groupings (according to the Global Industry Classification Standard (GICS)), the corresponding sector modules will not appear below but will automatically appear in the navigation bar when you save this page. If you want to query your classification, please email [email protected]. If you have not been presented with a sector module that you consider would be appropriate for your company to answer, please select the module below. If you wish to view the questions first, please see https://www.cdp.net/en-US/Programmes/Pages/More-questionnaires.aspx.

Further Information

VESTEL Electronics is the TV,smartphone,tablet, Led lightings,infomative screens, set top box manufacturing plant of VESTEL Group of Companies. Employing more than 8000 people, VESTEL’s production facilities are located in MANISA in Turkey. With 256.000 m2 of enclosed space, it has a total annual production capacity of 15 million units.VESTEL Electronics has 6 production facilities; Electronic Board Production,Plastic Injection,Paint Shop,Styrofoam Production, Digital(Smartphone , Tablet , Interactive Smartboards,Informative Screen,Touch screen) Production,Final Assembly Manufacturing (Led TV, Set top Box, Led Lighting) at the highest quality standards requires discipline as well as knowledge and experience. Total Productive Maintenance approach implemented throughout the manufacturing process improves efficiency and productivity in all areas and also ongoing SCM(Supply Chain Excellence) projects , making VESTEL a World Class Manufacturer.

Attachments

https://www.cdp.net/sites/2016/59/21159/Climate Change 2016/Shared Documents/Attachments/ClimateChange2016/CC0.Introduction/TPM_Excellence in Consistent Award_VESTEL_2015.jpg https://www.cdp.net/sites/2016/59/21159/Climate Change 2016/Shared Documents/Attachments/ClimateChange2016/CC0.Introduction/TPM_Excellence Award_VESTEL_2013.jpg

Module: Management

Page: CC1. Governance

CC1.1

Where is the highest level of direct responsibility for climate change within your organization?

Board or individual/sub-set of the Board or other committee appointed by the Board

CC1.1a

Please identify the position of the individual or name of the committee with this responsibility

(i)The highest level of direct responsibility for climate change rests with Mr. İhsaner Alkım, who is a member of the Executive Board responsible for top level management of all environmental, energy, and social responsibility issues. (ii)Position in the corporate structure and climate change related responsibilities: Mr. İhsaner Alkım reports directly to the Group CEO, Mr. Turan Erdoğan.

CC1.2

Do you provide incentives for the management of climate change issues, including the attainment of targets?

Yes

CC1.2a

Please provide further details on the incentives provided for the management of climate change issues

Who is entitled to benefit from these incentives?

The type of incentives

Incentivized performance

indicator

Comment

All employees Recognition (non-monetary)

Emissions reduction target Energy reduction project

Employees can submit ideas for new environmental programs, and are eligible to receive spot awards such as gifts for coming up with ideas that enhances the company's overall environmental performance, including those that result in greenhouse gas emissions reductions according to TPM Suggestion&Appreciation Evaluation System.

Who is entitled to benefit from these incentives?

The type of incentives

Incentivized performance

indicator

Comment

Business unit managers Monetary reward

Emissions reduction project Energy reduction project Efficiency project

Notable performance on environment and climate change issues (e.g. site activities for GHG reduction and product design that contributes to energy efficiency) and prevention of environmental incidents are reflected on the annual performance evaluation of Business Units

Executive officer Monetary reward

Emissions reduction project Energy reduction project Efficiency project Behaviour change related indicator


Environment/Sustainability managers

Monetary reward

Emissions reduction project Emissions reduction target Energy reduction project Energy reduction target Efficiency project Efficiency target Behaviour change related indicator


Further Information

VESTEL ELECTRONICS is continue to impelement TPM (Total Productive Maintenance) program and was awarded by Japan Institute of Plant Maintenance at the end of 2012. In the framework of this program , Vestel slogan comes from the fact that Vestel is friend to its employees, customers,suppliers, share holders, the community and beyond all, mother earth. Vestel Electronics started TPM program to avoid any sacrifice of quality while remaining competitive. In accordance with this aims, Vestel mainly focused on following items: Reducing number of work accidents, Increasing production capacity (OEE), Decreasing unit cost ,Increasing First time true rate, Reducing Scrap rate, Decreasing Breakdowns, Decreasing Service Call Rate, Reducing Maintenance Costs , Decreasing spare part stocks and usage cost, Improving Time to delivery, Shortening lead times on all processes, Decreasing Setup times, Becoming a benchmark plant in 5S achievement and creating a better working environment, Reducing Energy use, Increasing Number of suggestions, Reducing Environmental pollution, Reducing Consumable material usage. These aims can serve reducing carbon disclosure;directly or indirectly. In order to reach these goals, VESTEL builds up 9 committees and Suggestion and Appreciation System all around the factory. Then,VESTEL identified and set the rules for evaluation and awarding. The TPM excellence and TPM excellence continuity award of VESTEL can be seen attached.

Attachments

https://www.cdp.net/sites/2016/59/21159/Climate Change 2016/Shared Documents/Attachments/ClimateChange2016/CC1.Governance/TPM_Excellence Award_VESTEL_2013.jpg https://www.cdp.net/sites/2016/59/21159/Climate Change 2016/Shared Documents/Attachments/ClimateChange2016/CC1.Governance/TS ISO IEC 27001_Information Security Management System Certificate.pdf https://www.cdp.net/sites/2016/59/21159/Climate Change 2016/Shared Documents/Attachments/ClimateChange2016/CC1.Governance/TS EN ISO 9001_Quality Management System Certificate.pdf https://www.cdp.net/sites/2016/59/21159/Climate Change 2016/Shared Documents/Attachments/ClimateChange2016/CC1.Governance/TS EN ISO 50001_Energy Management System Certificate.pdf https://www.cdp.net/sites/2016/59/21159/Climate Change 2016/Shared Documents/Attachments/ClimateChange2016/CC1.Governance/CIPS_Cert_St_0341_Vestel_Elek.pdf https://www.cdp.net/sites/2016/59/21159/Climate Change 2016/Shared Documents/Attachments/ClimateChange2016/CC1.Governance/TPM_Excellence in Consistent Award_VESTEL_2015.jpg https://www.cdp.net/sites/2016/59/21159/Climate Change 2016/Shared Documents/Attachments/ClimateChange2016/CC1.Governance/TS 18001_Labour Health and Safety Certificate.pdf https://www.cdp.net/sites/2016/59/21159/Climate Change 2016/Shared Documents/Attachments/ClimateChange2016/CC1.Governance/TS EN ISO 14001_Environmental Management System Certificate.pdf

Page: CC2. Strategy

CC2.1

Please select the option that best describes your risk management procedures with regard to climate change risks and opportunities

Integrated into multi-disciplinary company wide risk management processes

CC2.1a

Please provide further details on your risk management procedures with regard to climate change risks and opportunities

Frequency

of monitoring

To whom are results

reported?

Geographical areas

considered

How far into

the future are risks

considered?

Comment

Annually

Board or individual/sub-set of the Board or committee appointed by the Board

The assessment of risks is mainly relying on monitoring of environmental data related to climate change in domestic and external markets.

> 6 years

(i)Zorlu Holding's Corporate Risk Management Department commenced -at first quarter of 2012- its operations as support. In this context, to be effective for all of the associated companies operating within Zorlu Holding, Zorlu Risk Policy;Procedure and Enterprise Risk Management , Key Risk Criteria framework was prepared. Studies as well as the evaluation of 9 risk item financial risks, operational, environmental technological, etc. are included in the risk management system. (ii)Periodical "Vestel Search Conference" is done once a 5 years with participation of board members and employees from different levels and attendies evaluate long term risks and opportunities for future of Vestel by workshops.

CC2.1b

Please describe how your risk and opportunity identification processes are applied at both company and asset level

The risk management procedure related to climate change risks and opportunities basically involves consideration of regulatory and reputational risks, which may have the highest impact on the demand for our products (prioritization criteria). The procedure is mostly influenced by the climate change awareness among the top-level management and the requests/feedback of our consumers and retailers concentrating more on climate change/energy efficiency related performance. The assessment of risks is mainly relying on monitoring of environmental data related to climate change such as GHG emissions and emission intensity (i.e. GHG emissions per product) which is being collected and processed by the Management Systems unit. Zorlu Risk Management Group and Chief of Management Systems regularly report to the responsible executive board member and observed risks (if any) are being discussed by the Board and actions are being defined by the top management. Physical risks (risks/opportunities at an asset level) are also assessed by Zorlu Risk Management Group and related departments like IT,Maintenance&Investment etc..They continuously evaluate Vestel factory and office facilities.

CC2.1c

How do you prioritize the risks and opportunities identified?

The major environmental and energy performance reporting including performance related to climate change is done by our ISO 14001 Environmental Management representative and ISO 50001 Energy Management Representative at the annual screening meeting. However, chief of Management Systems and Facility Energy Manager have continuous and direct communication with the responsible executive board member for matters that require earlier consideration. There also the Audit Committee, operating under Zorlu Holding, implementing audits also on our environmental and energy performance, which identifies any problems related to environmental compliance and implementation of environmental strategy. Included in the collected environmental data, the GHG emissions data is presented with Scope 1, Scope 2 and Scope 3 emissions. , Zorlu Holding's Corporate Risk Management Department commenced -at first quarter of 2012- its operations as support. In this context, to be effective for all of the associated companies operating within Zorlu Holding, Zorlu Risk Policy;Procedure and Enterprise Risk Management framework was prepared. Studies as well as the evaluation of financial risks, operational, environmental technological, etc. are included in the non-financial risks.

CC2.1d

Please explain why you do not have a process in place for assessing and managing risks and opportunities from climate change, and whether you plan to introduce such a process in future

Main reason for not having a process

Do you plan to introduce a process?

Comment

CC2.2

Is climate change integrated into your business strategy?

Yes

CC2.2a

Please describe the process of how climate change is integrated into your business strategy and any outcomes of this process

Having received significant attention of governments, investors and also individuals over the last decades, the risks associated with the climate change are inevitably affecting the manufacturing industry as well as all industries, although the risks are assumed not to have considerably higher impacts as in the case of energy sector and/or energy intensive industries. As Vestel Electronics, we are placing ‘environmental sustainability’ and decreasing the ecological footprint of our products at the core of our business strategy. Furthermore, as being the manufacturer of high technology energy efficient products, which help our consumers to actually reduce their footprint, we have increased awareness on the impacts of climate change on our business. Climate drivers are important factors that we pay attention in building our broad company strategy that addresses; •Caring for the environment and climate starting from the designing phase of our products to the manufacturing phase •Prioritizing investment and expansion in manufacturing of the most energy efficient products in our production portfolio •Increasing RD activities and dedicated budget for developing new production methodologies and products with decreased ecological footprint •Continuously looking for opportunities to reduce waste and enable use of materials suitable for reuse and recycle • Promoting use of new technologies to save energy and to boost energy efficiency in all operations •Raising employees’ and consumers’ awareness on environmental protection and energy efficiency •Ensuring effective communication to stakeholders and proper disclosure of environmental and climate performance The basic influence of climate change in our strategy is that we have taken the first step in preparing our company for the impacts by working on understanding how our business activities and investments are affected by climate change and preparing the infrastructure to make it a part of our management culture also by identifying the interdependencies between climate change risks and other risks relevant to our company. Investing in R&D has always been valued by our company, and R&D that is directed to serving for eliminating climate risks, such as developing practices and/or products that improve efficiency and/or eliminate emissions both on the production side and on the consumer side, has become our leading strategy. While building our climate strategy, in the short term, we have started by quantifying our emissions broadly and we are planning to prepare a detailed carbon emission inventory and seek for third party verification. In the medium term, we will also be identifying and quantifying the carbon impacts along our value chain. In the long terms we will be planning for putting targets related to our climate performance. On the product end, our strategy has basically led to manufacturing of Energy Class A TVs and to our decision in expanding business in manufacturing of LED TVs&eco TVs and LED lightings in 2015 by increasing our production capacity. We also spared an unlimited R&D budget for developing products with improved environmental performance. Vestel Electronics, which is already a strong market player, is gaining distinctive competency through implementation of its business strategy, which enables our company to be the manufacturer of most energy efficient products with decreased ecological footprint, which are being preferred by the environmentally conscious consumers, who are increasing with a sharp pace.

CC2.2b

Please explain why climate change is not integrated into your business strategy

CC2.2c

Does your company use an internal price of carbon?

Yes

CC2.2d

Please provide details and examples of how your company uses an internal price of carbon

We are using certain prices for carbon, a “theoretical” price of carbon, has been set to calculate in evaluation of our future projects and also operation improvements based on operational excellence and developing programs.

CC2.3

Do you engage in activities that could either directly or indirectly influence public policy on climate change through any of the following? (tick all that apply)

Direct engagement with policy makers Trade associations Funding research organizations Other

CC2.3a

On what issues have you been engaging directly with policy makers?

Focus of legislation

Corporate Position

Details of engagement

Proposed legislative solution

Energy efficiency

Support

We are engaging with policy makers, i.e. Ministry of Environment and Urbanisation, Ministry of Energy and Natural Sources, Ministry of Science, Industry and Technology as an individual company as well as with trade associations. During the EU energy labeling adaptation process in Turkey, Vestel shared its opinions with Ministry of Science, Industry and Technology.

Energy Labeling Regulation is completely supported by Vestel.

Other: Support

We are engaging with Turkish Standards Institution via Mirror Committees. Because Turkish Standards Institution is a member of International Organization for Standardization (ISO), and the International Electrotechnical Commission (IEC) on 26 May 1955 and 1 January 1956 respectively, we as Vestel Electronics directly influence the consumer products, energy consumption and environment related standards.

As a major player, by joining Mirror Committees, we support the creation and improvement of the standards.

CC2.3b

Are you on the Board of any trade associations or provide funding beyond membership?

Yes

CC2.3c

Please enter the details of those trade associations that are likely to take a position on climate change legislation

Trade association

Is your position

on climate change

consistent with

theirs?

Please explain the trade association's position

How have you, or are you attempting to, influence the position?

TESİD Consistent

The Electronic Industries in Turkey are organized in an independent association in order to deal with the common interests of the individual companies. In 2000, due to rapid changes in the high tech industry TESID has decided to widen its scope and include software houses and telecom operators accordingly. MISSION: Leading the Turkish Electronics Industry, Information Technologies and related service sectors towards continuous competitiveness and increasing its contributions to the national economy and the people. VISION: 1. Encouraging and supporting technological creativity to achieve a common goal among universities, industry and the government so that competitive, flexible, productive and high quality goods and services are produced. 2. To support: b) the development of a modern, globally competitive electronics industry. c) the expansion of capacity and productivity as well as the enchancement of the investment opportunities of the industry. d) the improvement of the standard of living of employees, for greater employee satisfaction. 3. Concerning policies, strategies, standards and development within the electronics industry. 4. Supporting the Electronics Industry to develop into a strong, environmentally aware, safety conscious establishment that is an overall positive contributor to the community.

Supporting the Electronics Industry to develop into a strong, environmentally aware, safety conscious establishment that is an overall positive contributor to the community.

TÜRKBESD Consistent White Goods Manufacturers’ Association of Turkey, whose Vestel is one of the board members of TURKBESD and works

Trade association

Is your position

on climate change

consistent with

theirs?



acronym is TÜRKBESD, was established in 1986 as White Goods Manufacturers’ Association (BESD) by the leading white goods companies of the sector. In 1999, following its membership to the European Union’s senior organization of the field CECED (European Committee of Domestic Equipment Manufacturers), the association received permission to use “Turkey” in its name through a Cabinet of Ministers decree, and changed its name to White Goods Manufacturers’ Association of Turkey (TÜRKBESD). Currently, the association has six members: Arçelik, B/S/H, Candy Group, Demirdöküm, Indesit, and Vestel. The association represents approximately 90-91% of the sector. Additionally, TÜRKBESD represents Turkey at CECED (European Committee of Domestic Equipment Manufacturers), which is a platform where home appliance manufacturers in the European Union come together to make decisions. The efforts in the EU are pursued through this membership, and specialist technical personnel of the member companies participate in the technical committee works of the said organization. When needed and requested, the association makes statements to the relevant ministries, NGOs and media (Ministry of Science, Industry and Technology, Ministry of Environment and Urban Planning, Ministry of Energy and Natural Resources, Ministry of Economy, Ministry of Customs and Trade, General Directorate for the Protection of Consumers and Competition, the Union of Chambers and Commodity Exchanges of Turkey, Undersecretariat of Foreign Trade, Central Bank of the Republic of Turkey, TUSIAD [Turkish Industry and Business Association]).

close with other members to drive TURKBESD policies related with energy efficiency, environmental compliance regulations. For instance, recent studies are about the determining control and collect methods of waste electrical and electronic equipments via directives such as AEEE.

TUBİSAD Consistent

TUBISAD is representing the strongest collective voice of the companies operating in Information and Communications Technology (ICT) and New Media sectors. Over 200 active member companies of TUBISAD are governing an economic volume of annually 40 billion USD in Turkey. The primary mission of TUBISAD is to foster ICT in becoming the

Vestel is board member of Tubisad and drives/supports Tubisad environmental/climate change policy via Government Relations Committee.The objectives are following-up regulatory policy changes and developments related to the ICT sector, submitting collective opinion of the sector on improvement opportunities. Regulatory Policy Committee is supported by the following

Trade association

Is your position

on climate change

consistent with

theirs?



fundamental sector contributing to Turkey’s economic growth and to promote collective interests of the member companies while abiding by universal values and maintaining its independency. TUBISAD’s Member of Board combines 21 direct and 8 deputy members from the leaders of the Turkish ICT sector. Activities and Services 1 - Impact on Sectoral Policies ◦Increasing the level of support for innovation ◦Fostering the development of medium sized enterprises ◦Facilitating standardization of regulations imposed on taxation and foreign trade and auditing of compliance with them ◦Advocating widespread compliance with the copyright protection laws ◦Increasing the number of public services offered via electronic platforms ◦Supporting environment-friendly technologies 2 - Increasing Publicity and Awareness about the Sector ◦Creating awareness about the economic importance of the sector ◦Announcing nationwide and international success stories ◦Communicating collective objectives of the sector ◦Building strong relationships with the local and foreign press 3 - Sectoral Growth and Profitability ◦Development of local value added solutions and services ◦Launching sectoral standards, certification programmes and regulations ◦Fostering high quality in education and employment ◦Establishing proper conditions for fair competition ◦Fostering export sales of technological products and services ◦Enabling collaboration and information sharing among companies in sector 4 - Center for Reliable Commercial and Intellectual Information ◦Reliable sectoral data creation and sharing ◦Performing sectoral data analysis and market research ◦Informing the society about sectoral trends and estimates

working groups each focusing on the related regulatory policies concerning the ICT sector; • Hardware Industry Regulations • European Union Alignment and Relations with DIGITALEUROPE • Environmental Regulations • Consumer Law • E-Invoice • Government Incentives related to ICT

EU Trade Associations

Consistent

Vestel Electronics has membership on Trade Associations of some European countries via its sales offices i.e. Vestel Germany, Vestel UK, Vestel France, Vestel Italy, Vestel Iberia which are located in these countries.

We are engaging with European countries' policy makers by sharing our comments via Vestel sales offices.

Trade association

Is your position

on climate change

consistent with

theirs?



CECED Consistent Vestel Electronics has membership on CECED (The European Committee of Domestic Equipment Manufacturer ).The membership type is direct membership.

Vestel is one of the direct members of CECED and works close with other members to drive CECED policies related with energy efficiency, environmental compliance regulations.

AGID Consistent

AGID (Turkish Lighting Luminaires Manufacturers Association) is established in 1997 by 19 manufacturing companies of lighting fixtures and components, with the intention of realizing the following essential goals: To engender consciousness about the identity of the private sector, To advance individual and collective relationships between the representatives in the industry, To enhance theoretical/academic interactions through common efforts and agreements, To complete the process of conforming to international standards, To ensure the proper representation of Turkish manufacturing companies in the international marketplace, To protect the consumer rights.

Vestel is one of the members of AGID and works close with other members to drive AGID policies related with energy efficiency, environmental compliance regulations.

LIA Consistent

The Lighting Industry Association is Europe's largest trade association for lighting equipment professionals. This includes lighting manufacturers, suppliers, retailers, wholesalers, designers and all professionals active in the UK lighting market.

Vestel is one of members of LIA and works close with other members to drive LIA policies related with energy efficiency, environmental compliance regulations.

CC2.3d

Do you publicly disclose a list of all the research organizations that you fund?

Yes

CC2.3e

Please provide details of the other engagement activities that you undertake

Vestel Works with TUBITAK in many energy and energy related projects and creates results which may effects policies related with energy efficiency, environmental compliance regulations. The Scientific and Technological Research Council of Turkey (TÜBİTAK) is the leading agency for management, funding and conduct of research in Turkey. It was established in 1963 with a mission to advance science and technology, conduct research and support Turkish researchers. The Council is an autonomous institution and is governed by a Scientific Board whose members are selected from prominent scholars from universities, industry and research institutions. TÜBİTAK is responsible for promoting, developing, organizing, conducting and coordinating research and development in line with national targets and priorities.

CC2.3f

What processes do you have in place to ensure that all of your direct and indirect activities that influence policy are consistent with your overall climate change strategy?

We are engaging with policy makers, i.e. Ministry of Environment and Urbanisation, Ministry of Energy and Natural Resources, Ministry of Science,Industry and Technology, Turkish Standards Institution as an individual company and also through TESID (Turkish Association of electronics and Information Industries), TURKBESD (Turkish White Goods Manufacturers' Association) , TUBISAD (Informatics Industry Association) CECED(The European Committee of Domestic Equipment Manufacturer ), AGID and European countries' trade associations via Vestel sales offices. We have been invited by the Climate Platform, which we welcomed as it presents us the opportunity to engage in climate change issues within a network of companies having increased awareness. Our engagement with policy makers is mainly providing our feedback on transposition and/or implementation of relevant EU Directives. We have been advocating all actions that serve for improving the environmental performance required from our sector both related to manufacturing processes and the products themselves. We were the first company to have complied with the EU Directives relevant for our sector that encourages improving products energy efficiency and we have given our feedback many times in the process of aligning our legislation with the EU including, Energy Related Products(ErP) Eco-Design Directive, Energy Labeling Directive, Waste Electrical and Electronic Equipment (WEEE) Directive and Restriction Of The Use Of Certain Hazardous Substances (RoHS) Directive.

CC2.3g

Please explain why you do not engage with policy makers

Further Information

Page: CC3. Targets and Initiatives

CC3.1

Did you have an emissions reduction or renewable energy consumption or production target that was active (ongoing or reached completion) in the reporting year?

Absolute target

CC3.1a

Please provide details of your absolute target

ID

Scope

% of emissions in

scope

% reduction from base

year

Base year

Base year emissions covered by

target (metric tonnes CO2e)

Target year

Is this a science-based target?

Comment

Abs14 Scope 1+2 (location-based)

100% 10% 2010 53645.03 2020 Yes

Years are both fiscal, that is base year is FY2010 and target year is FY2020.Because of merge operation with Vestel Digital Facility, base year's C02 data is recalculated.

CC3.1b

Please provide details of your intensity target

ID

Scope

% of emissions in

scope

% reduction from base

year

Metric

Base year

Normalized base year emissions covered by

target

Target year

Is this a science-based target?

Comment

CC3.1c

Please also indicate what change in absolute emissions this intensity target reflects

ID

Direction of change anticipated in absolute Scope 1+2 emissions at

target completion?

% change anticipated in absolute Scope 1+2

emissions

Direction of change anticipated in absolute Scope 3 emissions at target

completion?

% change anticipated in absolute Scope 3

emissions

Comment

CC3.1d

Please provide details of your renewable energy consumption and/or production target

ID

Energy types

covered by target

Base year

Base year energy for energy type covered

(MWh)

% renewable

energy in base year

Target year

% renewable

energy in target year

Comment

CC3.1e

For all of your targets, please provide details on the progress made in the reporting year

ID

% complete

(time)

% complete (emissions or

renewable energy)

Comment

Abs14 50% 0%

Vestel Electronics decided to takeover and merge with Vestel Digital has 60.000m2 area and 1000 employees.Also due to the nature of current TV production sector, production method is changed from panel-in-tv-out to cell-in-tv-out Additionally we staerted to produce semi products and sub assemblies inhouse by cancelling outsorced operations.This merge , production method operation and inhouse manufacturing naturally caused a significant increase in the energy consumption of Vestel Electronics. Therefore we couldn't catch the sub-target in 50% time period (2015) of the total target time(2020).

CC3.1f

Please explain (i) why you do not have a target; and (ii) forecast how your emissions will change over the next five years

CC3.2

Do you classify any of your existing goods and/or services as low carbon products or do they enable a third party to avoid GHG emissions?

Yes

CC3.2a

Please provide details of your products and/or services that you classify as low carbon products or that enable a third party to avoid GHG emissions

Level of

aggregation

Description of product/Group of

products

Are you

reporting low carbon product/s or avoided emissions?

Taxonomy, project or

methodology used to classify

product/s as low carbon or to calculate

avoided emissions

%

revenue from low carbon

product/s in the

reporting year

% R&D in

low carbon product/s in

the reporting

year

Comment

Product

LED Lightning products(Downlight, Panel Light, spotlight, Weather-Proof Batten,High Bay,Canopy,Architectural Lighting, Street Light,Landscape Lighting etc..)

Low carbon product

Other: ISO14064 standard&ErP

0.77% Less than or equal to 10%

Vestel Electronics produces a wide range of LED Lighting solutions for retail,offices, hospitality, outdoor, healthcare, industrial and architectural use. Vestel LED Lighting solutions are designed to reduce the energy consumption significantly without compromising the light level and quality with a long lifecycle for these areas. The unique designs also help reducing operational and maintanence costs.

Product LED TVs Low carbon product

Other: ISO14064 standard&ErP

85.60%

More than 60% but less than or equal to 80%

Vestel Electronics produces a wide range of LED TVs.We have invested in R&D related to development of our LED TV product and also in R&D which has led to elimination of an emission/energy intensive step which used to be employed in soldering (Pin in Paste) process.

CC3.3

Did you have emissions reduction initiatives that were active within the reporting year (this can include those in the planning and/or implementation phases)

Yes

CC3.3a

Please identify the total number of projects at each stage of development, and for those in the implementation stages, the estimated CO2e savings

Stage of development

Number of projects

Total estimated annual CO2e savings in metric tonnes CO2e (only for rows marked *)

Under investigation

To be implemented*

Implementation commenced*

Implemented* 3 2890

Not to be implemented

CC3.3b

For those initiatives implemented in the reporting year, please provide details in the table below

Activity type

Description of activity

Estimated annual CO2e

savings (metric tonnes CO2e)

Scope

Voluntary/ Mandatory

Annual monetary savings

(unit currency -

as specified in CC0.4)

Investment required

(unit currency -


Payback period

Estimated lifetime of

the initiative

Comment

Energy efficiency: Processes

DHS application in plastic injection machines

1851

Scope 2 (location-based)

Voluntary

597594 400000 <1 year 11-15 years


Shortening of the cycle time with robotic arm revision

573 Scope 2 (location-based)

Voluntary

184934 25000 <1 year 11-15 years

Activity type

Description of activity

Estimated annual CO2e

savings (metric tonnes CO2e)

Scope

Voluntary/ Mandatory

Annual monetary savings

(unit currency -


Investment required

(unit currency -


Payback period

Estimated lifetime of

the initiative

Comment


the revision of steam pressure line and shortening of the cycle time with pressure stabilisation

466


Voluntary

150588 15000 <1 year 11-15 years

CC3.3c

What methods do you use to drive investment in emissions reduction activities?

Method

Comment

Compliance with regulatory requirements/standards

We are continuously monitoring compliance with Energy related Products (ErP) Eco-Design Directive, Energy Labelling Directive, Waste Electrical and Electronic Equipment (WEEE) directive and Restriction Of The Use Of Certain Hazardous Substances (RoHS) Directive along with other relevant national environmental regulations.

Dedicated budget for energy efficiency

We have implemented many projects that improved our energy efficiency such as processes energy efficiency ( plastic factory processes improvements, snowbox factory processes improvements etc.)

Dedicated budget for low carbon product R&D

We have invested in R&D related to development of our LED TV product and also in R&D which has led to elimination of an emission/energy intensive step which used to be employed in soldering (Pin in Paste) process. Also we have invested in R&D and production related departments to produce LED lighting products

Employee engagement Based on our TPM project framework , we have provided all employees to attend environmental improvement activities with suggestion evaluation and appreciation recognazition system which has over 1.000.000 TRY investment cost and it will continue untill 2020.

CC3.3d

If you do not have any emissions reduction initiatives, please explain why not

Further Information

Attachments

https://www.cdp.net/sites/2016/59/21159/Climate Change 2016/Shared Documents/Attachments/ClimateChange2016/CC3.TargetsandInitiatives/Led-Lighting_cfd7f404cb77.pdf

Page: CC4. Communication

CC4.1

Have you published information about your organization’s response to climate change and GHG emissions performance for this reporting year in places other than in your CDP response? If so, please attach the publication(s)

Publication

Status

Page/Section

reference

Attach the document

Comment

In voluntary communications

Underway - previous year attached

p.43-44

https://www.cdp.net/sites/2016/59/21159/Climate Change 2016/Shared Documents/Attachments/CC4.1/2014_Zorlu_Holding_UNGC_COP.pdf

The United Nations Global Compact is a United Nations initiative to encourage businesses worldwide to adopt sustainable and socially responsible policies, and to report on their implementation. The UN Global Compact is a principle-based framework for businesses, stating ten principles in the areas of human rights, labour, the environment and anti-corruption.

In mainstream reports

Complete

p.73-74-92 https://www.cdp.net/sites/2016/59/21159/Climate Change 2016/Shared Documents/Attachments/CC4.1/faaliyet-raporu-

Publication

Status

Page/Section

reference

Attach the document

Comment

(including an integrated report) in accordance with the CDSB Framework

2015.pdf

In other regulatory filings

Complete

p.2-3 https://www.cdp.net/sites/2016/59/21159/Climate Change 2016/Shared Documents/Attachments/CC4.1/Enerji tüketim Bildirim Formu.pdf

In voluntary communications

Underway - previous year attached

p.5

https://www.cdp.net/sites/2016/59/21159/Climate Change 2016/Shared Documents/Attachments/CC4.1/BIST50_Sürdürülebilirlik İçeriği 2015.pdf

We publish our GHG emissions performance on following web site (Vestel Electronics Sustainability) http://www.vestelyatirimciiliskileri.com/surdurulebilirlik/ekolojik-duyarlilik/iklim-degisikligi.aspx

Further Information

Module: Risks and Opportunities

Page: CC5. Climate Change Risks

CC5.1

Have you identified any inherent climate change risks that have the potential to generate a substantive change in your business operations, revenue or expenditure? Tick all that apply

Risks driven by changes in regulation Risks driven by changes in physical climate parameters Risks driven by changes in other climate-related developments

CC5.1a

Please describe your inherent risks that are driven by changes in regulation

Risk driver

Description

Potential impact

Timeframe

Direct/ Indirec

t

Likelihood

Magnitude of

impact

Estimated financial

implications

Management method

Cost of management

Fuel/energy taxes and regulations

We may be exposed to the risk of carbon taxes via our suppliers operating in certain parts of the world, where these taxes expected in the near future.

Increased operational cost

Unknown Indirect (Supply chain)

More likely than not

Medium-high

%10 of reveneu

Following and Managing of domestic and worldwide regulations, Zorlu Risk Management Group

Department and consultancy costs

Product efficiency regulations and standards

If we fail to comply with the product efficiency regulations and standards required for selling our products to EU and Domestic Market,

Reduced demand for goods/services

Up to 1 year

Direct Very unlikely

High loose %95 of market

Following and Managing of domestic and worldwide regulations, Zorlu Risk Management Group, powerfull R&D

Department,research&development and consultancy costs

Risk driver

Description

Potential impact

Timeframe

Direct/ Indirec

t

Likelihood

Magnitude of

impact

Estimated financial

implications

Management method

Cost of management

there is a risk for us to loose 95% of our market.

Product labelling regulations and standards

If we fail to comply with the product efficiency regulations and standards required for selling our products to EU and Domestic Market, there is a risk for us to loose 95% of our market.


Up to 1 year


High loose %95 of market

Following and Managing of domestic and worldwide regulations, Zorlu Risk Management Group, powerfull R&D


CC5.1b

Please describe your inherent risks that are driven by changes in physical climate parameters

Risk driver

Description

Potential impact

Timeframe

Direct/ Indirec

t

Likelihood

Magnitude of

impact

Estimated financial

implications

Management

method

Cost of management

Change in temperature extremes

Reduced equipment efficiency due to temperature extremes may affect our manufacturing performance and/or increase our air conditioning costs.

Increased operational cost

1 to 3 years

Direct Unlikely Low-medium

%10 equipment costs

TPM(Total Productive Maintenance) project

Department and consultancy costs

Other physical climate drivers

Extreme weather events may cause delays in product raw material import

Reduction/disruption in production capacity

Up to 1 year

Indirect (Supply chain)

Unlikely Medium-high

Production delays, loose customers, punishments

Supply Chain excellence office, Alternative supplier/material management


Other physical climate drivers

Extreme weather events may cause delays in product exports to countries worldwide.


Up to 1 year

Direct Unlikely Medium-high

Shipment delays, loose customers, punishments

Shipment Operations Group, alternative shipment methodes

Department costs

CC5.1c

Please describe your inherent risks that are driven by changes in other climate-related developments

Risk driver

Description

Potential impact

Timeframe

Direct/ Indirec

t

Likelihood

Magnitude of

impact

Estimated financial

implications

Management

method

Cost of management

Changing consumer behaviour

Any failure related to implementation of our environment and climate friendly business strategy and reduced environmental performance in our activities may result in losing of our consumers and our market share.


Up to 1 year

Indirect (Client)

Very unlikely

Low-medium

losing of our consumers and our market share.

Following and Managing of domestic and worldwide regulations, Market researchs, Zorlu Risk Management Group, powerfull R&D


Reputation

Our company also sees the risk in failing to actively disclose environment and climate related performance to current and potential investors and therefore affecting our

Reduced stock price (market valuation)

Up to 1 year


Low-medium

reducing of stock prices

Following and Managing of domestic and worldwide regulations,transparent management, Zorlu Risk Management Group, powerfull R&D


Risk driver

Description

Potential impact

Timeframe

Direct/ Indirec

t

Likelihood

Magnitude of

impact

Estimated financial

implications

Management

method

Cost of management

stock prices.

CC5.1d

Please explain why you do not consider your company to be exposed to inherent risks driven by changes in regulation that have the potential to generate a substantive change in your business operations, revenue or expenditure

CC5.1e

Please explain why you do not consider your company to be exposed to inherent risks driven by physical climate parameters that have the potential to generate a substantive change in your business operations, revenue or expenditure

CC5.1f

Please explain why you do not consider your company to be exposed to inherent risks driven by changes in other climate-related developments that have the potential to generate a substantive change in your business operations, revenue or expenditure

Further Information

Page: CC6. Climate Change Opportunities

CC6.1

Have you identified any inherent climate change opportunities that have the potential to generate a substantive change in your business operations, revenue or expenditure? Tick all that apply

Opportunities driven by changes in regulation Opportunities driven by changes in physical climate parameters Opportunities driven by changes in other climate-related developments

CC6.1a

Please describe your inherent opportunities that are driven by changes in regulation

Opportunity driver

Description

Potential impact

Timeframe

Direct/Indirect

Likelihood

Magnitude of impact

Estimated financial

implications

Management

method

Cost of

management

Product efficiency regulations and standards

Our facilities will comply with the "By-Law on Energy Performance of Buildings" and will perform periodic energy audits and performance reporting according to this by-law. This will enable us to identify any

Reduced operational costs

Up to 1 year

Direct Virtually certain

Medium-high

%8 reveneu, %10 export capacity increase

We are closely monitoring such regulatory opportunities especially in the EU market, as our main market, by monitoring all upcoming regulations and standards starting from their drafting

We have invested a total of 200,000 TRY for preparing the technical and administrative infrastructure required for compliance with the EU legislation related to product efficiency and

Opportunity driver

Description

Potential impact

Timeframe

Direct/Indirect

Likelihood

Magnitude of impact

Estimated financial

implications

Management

method

Cost of

management

energy efficiency improvement.

eco-labelling.

Product labelling regulations and standards

It has become compulsory to label all TVs with EU and Domestic Market energy labels in order to be able to sales to EU countries and domestic market. As a company who has established its production infrastructure ensuring compliance with such expected regulation well ahead of its enforcement, we have gained competitive advantage in our market.

Increased demand for existing products/services

Up to 1 year

Direct Virtually certain

Medium-high

%8 reveneu, %10 export capacity increase

We are closely monitoring such regulatory opportunities especially in the EU market, as our main market, by monitoring all upcoming regulations and standards starting from their drafting

We have invested a total of 200,000 TRY for preparing the technical and administrative infrastructure required for compliance with the EU legislation related to product efficiency and eco-labelling.

CC6.1b

Please describe the inherent opportunities that are driven by changes in physical climate parameters

Opportunity driver

Description

Potential impact

Timeframe

Direct/ Indirect

Likelihood

Magnitude of impact

Estimated financial

implications

Management

method

Cost of

management

Snow and ice

We have been observing an increased demand for our products during times when weather conditions encourage and/or force people to stay indoors such as snow and ice.


Unknown Indirect (Client)

Likely Medium

Potential financial implications of the opportunity are hard to determine due to uncertainty related to such physical phenomena.

Managing inventory, advertising and sales channels

Seasonal costs are like high inventory cost and advertising costs.

CC6.1c

Please describe the inherent opportunities that are driven by changes in other climate-related developments

Opportunity driver

Description

Potential impact

Timeframe

Direct/ Indirect

Likelihood

Magnitude of impact

Estimated financial

implications

Management method

Cost of

management

Changing consumer behaviour

It is observed that the consumers’ climate awareness is rising every year. As a company building its strategy upon sustainability of


Up to 1 year

Indirect (Client)

Virtually certain

High

We expect that the eco TV and LED TV market share will expand up to 100 % in 2016 and as Vestel , we completed establishment

Managing regulations, research&development studies, advertising and sales channels

We have made investment worth of 50 million USD in our energy-efficient LED TV , LED Lighting, Touch screens,

Opportunity driver

Description

Potential impact

Timeframe

Direct/ Indirect

Likelihood

Magnitude of impact

Estimated financial

implications

Management method

Cost of

management

natural resources and materials in its operations, and investing in high technology helping to reduce the ecological footprint of its products, we see this as an important opportunity to drive more consumers to buying our products and continue to be an important player and keep our competitiveness in the market. Vestel Electronics is the manufacturer of Eco TVs with reduced power consumption in stand-by and operation mode and energy efficient LED TVs and LED lightings with

of LED backlight modül manufacturing facilites and clean rooms.So , our shipments in 2015 was %100 with LED Backlight unit TVs.We observe from the buying trends consumers to want more energy efficient products. This works in VESTEL's favor and will result in increased sales.

Smartphones production plant for business expansion and also solar systems ,auto charger research and our R&D investments reached up to 60 million USD in 2015 supported with our ‘unlimited R&D budget’ strategy.

Opportunity driver

Description

Potential impact

Timeframe

Direct/ Indirect

Likelihood

Magnitude of impact

Estimated financial

implications

Management method

Cost of

management

low power consumption and long lifetime.

Reputation

Positive perceptions about VESTELs carbon performance by clients, investors and the general public will enhance its brand equity in the marketplace.


Unknown Indirect (Client)

Very likely Medium

We expect that the eco TV and LED TV market share will expand up to 100 % in 2016 and as Vestel , we completed establishment of LED backlight modül manufacturing facilites and clean rooms.So , our shipments in 2015 was %100 with LED Backlight unit TVs.We observe from the buying trends consumers to want more energy efficient products. This works in


We have made investment worth of 50 million USD in our energy-efficient LED TV , LED Lighting, Touch screens, Smartphones production plant for business expansion and also solar systems ,auto charger research and our R&D investments reached up to 60 million USD in 2015 supported with our ‘unlimited R&D budget’ strategy.

Opportunity driver

Description

Potential impact

Timeframe

Direct/ Indirect

Likelihood

Magnitude of impact

Estimated financial

implications

Management method

Cost of

management

VESTEL's favor and will result in increased sales.

Fluctuating socio-economic conditions

VESTEL is confident that downturns in the economy will cause consumers to want more energy efficient products. This works in VESTEL's favor and will result in increased sales.

Premium price opportunities

Unknown Direct Very likely Medium-high

We expect that the eco TV and LED TV market share will expand up to 100 % in 2016 and as Vestel , we completed establishment of LED backlight modül manufacturing facilites and clean rooms.So , our shipments in 2015 was %100 with LED Backlight unit TVs.We observe from the buying trends consumers to want more energy efficient products. This


We have made investment worth of 50 million USD in our energy-efficient LED TV , LED Lighting, Touch screens, Smartphones production plant for business expansion and also solar systems ,auto charger research and our R&D investments reached up to 60 million USD in 2015 supported with our ‘unlimited R&D budget’ strategy.

Opportunity driver

Description

Potential impact

Timeframe

Direct/ Indirect

Likelihood

Magnitude of impact

Estimated financial

implications

Management method

Cost of

management

works in VESTEL's favor and will result in increased sales.

CC6.1d

Please explain why you do not consider your company to be exposed to inherent opportunities driven by changes in regulation that have the potential to generate a substantive change in your business operations, revenue or expenditure

CC6.1e

Please explain why you do not consider your company to be exposed to inherent opportunities driven by physical climate parameters that have the potential to generate a substantive change in your business operations, revenue or expenditure

CC6.1f

Please explain why you do not consider your company to be exposed to inherent opportunities driven by changes in other climate-related developments that have the potential to generate a substantive change in your business operations, revenue or expenditure

Further Information

Module: GHG Emissions Accounting, Energy and Fuel Use, and Trading

Page: CC7. Emissions Methodology

CC7.1

Please provide your base year and base year emissions (Scopes 1 and 2)

Scope

Base year

Base year emissions (metric tonnes CO2e)

Scope 1 Fri 01 Jan 2010 - Fri 31 Dec 2010

2861

Scope 2 (location-based) Fri 01 Jan 2010 - Fri 31 Dec 2010

51698.16

Scope 2 (market-based) Fri 01 Jan 2010 - Fri 31 Dec 2010

0

CC7.2

Please give the name of the standard, protocol or methodology you have used to collect activity data and calculate Scope 1 and Scope 2 emissions

Please select the published methodologies that you use

ISO 14064-1

CC7.2a

If you have selected "Other" in CC7.2 please provide details of the standard, protocol or methodology you have used to collect activity data and calculate Scope 1 and Scope 2 emissions

CC7.3

Please give the source for the global warming potentials you have used

Gas

Reference

CO2 IPCC Fourth Assessment Report (AR4 - 100 year)

CH4 IPCC Fourth Assessment Report (AR4 - 100 year)

N2O IPCC Fourth Assessment Report (AR4 - 100 year)

CC7.4

Please give the emissions factors you have applied and their origin; alternatively, please attach an Excel spreadsheet with this data at the bottom of this page

Fuel/Material/Energy

Emission Factor

Unit

Reference

Natural gas 56100 Other: kgCO2 per tJ IPCC(2006)

Natural gas 1 Other: kgCH4 per tJ IPCC(2006)

Diesel/Gas oil 74100 Other: kgCO2 per tJ IPCC(2006)

Diesel/Gas oil 43 Other: tJ/Gg IPCC(2006)

Electricity 617 metric tonnes CO2 per MWh

Turkish Regulation "By-Law on Energy Performance of Buildings

Steam 267 Other: kgCO2 per t supplier's data and rough emission factors

Heat 0.48 Other: kgCO2 per kcal supplier's data and rough emission factors

Further Information

Page: CC8. Emissions Data - (1 Jan 2015 - 31 Dec 2015)

CC8.1

Please select the boundary you are using for your Scope 1 and 2 greenhouse gas inventory

Operational control

CC8.2

Please provide your gross global Scope 1 emissions figures in metric tonnes CO2e

3560.03

CC8.3

Does your company have any operations in markets providing product or supplier specific data in the form of contractual instruments?

No

CC8.3a

Please provide your gross global Scope 2 emissions figures in metric tonnes CO2e

Scope 2, location-based

Scope 2, market-based (if applicable)

Comment

76290.23 0

CC8.4

Are there are any sources (e.g. facilities, specific GHGs, activities, geographies, etc.) of Scope 1 and Scope 2 emissions that are within your selected reporting boundary which are not included in your disclosure?

Yes

CC8.4a

Please provide details of the sources of Scope 1 and Scope 2 emissions that are within your selected reporting boundary which are not included in your disclosure

Source

Relevance of Scope 1 emissions from this source

Relevance of

location-based Scope 2 emissions

from this source

Relevance of market-based

Scope 2 emissions from this source (if

applicable)

Explain why the source is excluded

Some chemical groups used (adhesives, aerosols, oils,paraffin waxes, solvents, solvent based paints, chemicals used for test purposes, EPS etc.) are at a negligible level

Emissions are not relevant



These chemicals were calculated and determined that they cause greenhouse gas emission at a negligible level; for this reason they are not included in greenhouse gas inventory.

Gases used for controlling gas and smoke detectors


No emissions from this source


Greenhouse gases from gases used for the Gas and smoke detector control (avg. 1lt.) has been neglected due to having a very low effect in total greenhouse gas.

CO2 and CH4 emission emitted by the waste water treatment plant




During treatment at wastewater treatment plant, greenhouse gas emissions occur as a result of bacteria activities. As CO2 and CH4 emission created during phsyical treatment is not set forth at "IPCC Guidelines for National Greenhouse Gas Inventories, Volume 5: Waste, Chapter 6: Wastewater Treatment and Discharge" it is not included in calculations.

CC8.5

Please estimate the level of uncertainty of the total gross global Scope 1 and 2 emissions figures that you have supplied and specify the sources of uncertainty in your data gathering, handling and calculations

Scope

Uncertainty range

Main sources of uncertainty

Please expand on the uncertainty in your data

Scope 1 More than 5% but Assumptions We used published default emission factors of IPCC 2006 for natural gas and diesel oil which have

Scope

Uncertainty range

Main sources of uncertainty

Please expand on the uncertainty in your data

less than or equal to 10%

Other: supplier's data

certain uncertainty. We used supplier data related to natural gas consumption.



Assumptions Other: supplier's data

The national grid emission factor published in the Turkish Regulation "By-Law on Energy Performance of Buildings" was used. The details and the most recent data used for the calculation of this emission factor is not presented in the regulation hence we assume the uncertainty to be not more than 10% by considering the changes in the grid system. We used the supplier's data and rough emission factors for estimating emissions from purchased steam and heat.

Scope 2 (market-based)

CC8.6

Please indicate the verification/assurance status that applies to your reported Scope 1 emissions

No third party verification or assurance

CC8.6a

Please provide further details of the verification/assurance undertaken for your Scope 1 emissions, and attach the relevant statements

Verification or

assurance cycle in place

Status in the

current reporting year

Type of verification or

assurance

Attach the statement

Page/section reference

Relevant standard

Proportion of reported Scope 1 emissions

verified (%)

CC8.6b

Please provide further details of the regulatory regime to which you are complying that specifies the use of Continuous Emissions Monitoring Systems (CEMS)

Regulation

% of emissions covered by the system

Compliance period

Evidence of submission

CC8.7

Please indicate the verification/assurance status that applies to at least one of your reported Scope 2 emissions figures


CC8.7a

Please provide further details of the verification/assurance undertaken for your location-based and/or market-based Scope 2 emissions, and attach the relevant statements

Location-based or

market-based figure?

Verification or


Status in the


Type of verification

or assurance


Page/Section reference

Relevant standard

Proportion of

reported Scope 2 emissions verified

(%)

CC8.8

Please identify if any data points have been verified as part of the third party verification work undertaken, other than the verification of emissions figures reported in CC8.6, CC8.7 and CC14.2

Additional data points verified

Comment

No additional data verified

CC8.9

Are carbon dioxide emissions from biologically sequestered carbon relevant to your organization?

No

CC8.9a

Please provide the emissions from biologically sequestered carbon relevant to your organization in metric tonnes CO2

Further Information

Page: CC9. Scope 1 Emissions Breakdown - (1 Jan 2015 - 31 Dec 2015)

CC9.1

Do you have Scope 1 emissions sources in more than one country?

No

CC9.1a

Please break down your total gross global Scope 1 emissions by country/region

Country/Region

Scope 1 metric tonnes CO2e

CC9.2

Please indicate which other Scope 1 emissions breakdowns you are able to provide (tick all that apply)

By activity

CC9.2a

Please break down your total gross global Scope 1 emissions by business division

Business division

Scope 1 emissions (metric tonnes CO2e)

CC9.2b

Please break down your total gross global Scope 1 emissions by facility

Facility


Latitude

Longitude

CC9.2c

Please break down your total gross global Scope 1 emissions by GHG type

GHG type


CC9.2d

Please break down your total gross global Scope 1 emissions by activity

Activity


Stationary Combustion 2492.36

Mobile Combustion 1014.61

Generators 53.06

Further Information

Page: CC10. Scope 2 Emissions Breakdown - (1 Jan 2015 - 31 Dec 2015)

CC10.1

Do you have Scope 2 emissions sources in more than one country?

No

CC10.1a

Please break down your total gross global Scope 2 emissions and energy consumption by country/region

Country/Region

Scope 2, location-based (metric

tonnes CO2e)

Scope 2, market-based (metric tonnes CO2e)

Purchased and consumed electricity, heat, steam or cooling

(MWh)

Purchased and consumed low carbon electricity, heat, steam or cooling

accounted in market-based approach (MWh)

CC10.2

Please indicate which other Scope 2 emissions breakdowns you are able to provide (tick all that apply)

By activity

CC10.2a

Please break down your total gross global Scope 2 emissions by business division

Business division

Scope 2 emissions, location based (metric tonnes CO2e)

Scope 2 emissions, market-based

(metric tonnes CO2e)

CC10.2b

Please break down your total gross global Scope 2 emissions by facility

Facility




CC10.2c

Please break down your total gross global Scope 2 emissions by activity

Activity




Administration 2155.32 0

Design 1633.33 0

Production 70014.78 0

Storage 2486.80 0

Further Information

Page: CC11. Energy

CC11.1

What percentage of your total operational spend in the reporting year was on energy?


CC11.2

Please state how much heat, steam, and cooling in MWh your organization has purchased and consumed during the reporting year

Energy type

Energy purchased and consumed (MWh)

Heat 4.42

Steam 69658.52

Cooling 0

CC11.3

Please state how much fuel in MWh your organization has consumed (for energy purposes) during the reporting year

14071.72

CC11.3a

Please complete the table by breaking down the total "Fuel" figure entered above by fuel type

Fuels

MWh

Natural gas 10836.34

Diesel/Gas oil 3235.38

CC11.4

Please provide details of the electricity, heat, steam or cooling amounts that were accounted at a low carbon emission factor in the market-based Scope 2 figure reported in CC8.3a

Basis for applying a low carbon emission factor

MWh consumed associated with low carbon electricity,

heat, steam or cooling

Comment

No purchases or generation of low carbon electricity, heat, steam or cooling accounted with a low carbon emissions factor

0 Vestel is located in Manisa Industrial Zone and purchases its energy i.e. electricity, natural gas, heat, steam from Manisa Industrial Zone Energy Facility. For now, there is no low carbon/renewable energy availability in this Industrial Area.

CC11.5

Please report how much electricity you produce in MWh, and how much electricity you consume in MWh

Total electricity consumed

(MWh)

Consumed

electricity that is purchased (MWh)

Total electricity produced

(MWh)

Total renewable

electricity produced (MWh)

Consumed renewable

electricity that is produced by company (MWh)

Comment

82263.39 82269.39 0 0 0

Further Information

Page: CC12. Emissions Performance

CC12.1

How do your gross global emissions (Scope 1 and 2 combined) for the reporting year compare to the previous year?

Increased

CC12.1a

Please identify the reasons for any change in your gross global emissions (Scope 1 and 2 combined) and for each of them specify how your emissions compare to the previous year

Reason

Emissions value (percentage)

Direction of change

Please explain and include calculation

Emissions reduction activities

3.76 Decrease The emission reduction activities implemented during the 2015 , have fairly prevented to increase GHG emissions mainly caused by cell in tv out production and inhouse subassembly production type.

Divestment

Reason

Emissions value (percentage)

Direction of change

Please explain and include calculation

Acquisitions

Mergers

Change in output

Change in methodology

2.70 Increase Increasing of gross global emmisions according to previous year is caused by (i)Production methodolgy is changed from panel-in-tv-out to cell-in-tv-out (ii)Sub-part production methodolgy is changed from subcontractor production to inhouse subassembly production.

Change in boundary

Change in physical operating conditions

5.17 Increase

Increasing of gross global emmisions according to previous year is caused by increasing usage of steam.Surface treatment of front and back cabinet and stand is chenged from paint/varnish coating to glossy (steam injection) . Over %98 of plastic parts of products was injected in 2015 as steam injection.

Unidentified

Other

CC12.1b

Is your emissions performance calculations in CC12.1 and CC12.1a based on a location-based Scope 2 emissions figure or a market-based Scope 2 emissions figure?

Location-based

CC12.2

Please describe your gross global combined Scope 1 and 2 emissions for the reporting year in metric tonnes CO2e per unit currency total revenue

Intensity figure =

Metric numerator (Gross global combined

Scope 1 and 2 emissions)

Metric denominator:

Unit total revenue

Scope 2 figure used

% change from

previous year

Direction of change from

previous year

Reason for change

0.00002243 metric tonnes CO2e

3401000000 Location-based

27.08 Increase

The reason of increasing is the decreasing of consumer electronics sector product prices and as parallel total reveneu is to be realised as low, although production quantity is higher than previous year

CC12.3

Please provide any additional intensity (normalized) metrics that are appropriate to your business operations

Intensity figure =

Metric numerator (Gross global combined

Scope 1 and 2 emissions)

Metric denominator

Metric

denominator: Unit total

Scope 2 figure used

% change from

previous year

Direction of change from

previous year

Reason for change


full time equivalent (FTE) employee


4.23 Increase The reason of increasing is the increasing of employer quantity


metric tonne of product


2.02 Increase The increasing of CO2 emmision is caused by production type and inhouse subassembly productions.

Further Information

Page: CC13. Emissions Trading

CC13.1

Do you participate in any emissions trading schemes?

No, and we do not currently anticipate doing so in the next 2 years

CC13.1a

Please complete the following table for each of the emission trading schemes in which you participate

Scheme name

Period for which data is supplied

Allowances allocated

Allowances purchased

Verified emissions in metric tonnes CO2e

Details of ownership

CC13.1b

What is your strategy for complying with the schemes in which you participate or anticipate participating?

CC13.2

Has your organization originated any project-based carbon credits or purchased any within the reporting period?

No

CC13.2a

Please provide details on the project-based carbon credits originated or purchased by your organization in the reporting period

Credit origination

or credit purchase

Project type

Project identification

Verified to which standard

Number of credits (metric

tonnes of CO2e)

Number of credits (metric tonnes

CO2e): Risk adjusted volume

Credits cancelled

Purpose, e.g. compliance

Further Information

Page: CC14. Scope 3 Emissions

CC14.1

Please account for your organization’s Scope 3 emissions, disclosing and explaining any exclusions

Sources of Scope 3 emissions

Evaluation status

metric tonnes CO2e

Emissions calculation methodology

Percentage of emissions

calculated using data obtained

from suppliers or value chain

partners

Explanation

Purchased goods and services

Relevant, calculated

29909.09 Average data is used to calculate transportation of purchased raw materials.

6.38% This calculation includes the transportation emissions of all materials and components which are purchased during 2015

Capital goods Relevant, calculated

66.24 Average data is used to calculate transportation of purchased equipments.

0.01%

This calculation includes the transportation emissions of 1 PVD Chrome plating machine, 1 AGV, 1 screw packaging machine, 1 Metal Cleaning Machine, 1 Tapeing Machine, 2 line automation machines, 1 ASM Machine1 DEK machine, 1 NUTEK Machine, 1 ASYMTEK Machine, 1 CYBEr Machine, 1 YXLON Machine,1 BTU Machine,2 Tape Applicator Machines, 1


Evaluation status

metric tonnes CO2e





partners

Explanation

Chiller, 1 Mold Transport Car, 1 PIMM and 1 CNC Servo Double Arm Robot which is purchased during in 2015

Fuel-and-energy-related activities (not included in Scope 1 or 2)


1186.98

Diesel/Gas oil emission factors that explained in IPCC(2006) are used to calculate emissions of fuel and energy related activities(not included in Scope 1 or 2).

0.25% This calculation includes fuel consumption of inside transportation cars and manager and top management vehicles provided by Vestel Electronics.

Upstream transportation and distribution

Not relevant, explanation provided

0.00 Not applicable 0.00% The downstream transportation and distribution of the products VESTEL sells in each of its major business groups, including any retail and storage.

Waste generated in operations


2.70

Diesel/Gas oil emission factors that explained in IPCC(2006) are used to calculate emissions of fuel and energy related activities(not included in Scope 1 or 2).

0.01%

This calculation includes emissions from the transportation of wastes between Vestel Electronics facilities and licenced waste companies and also Municipal Wastes.

Business travel Relevant, calculated

3918.05

2012 Guidelines to Defra / DECC's GHG Conversion Factors for Company Reporting is used to calculate total emissions of business travels.

0.84% This calculation includes all business flights of Vestel Electronics employee.

Employee commuting


6980.00

Diesel/Gas oil emission factors that explained in IPCC(2006) are used to calculate employee commuting emissions.

1.48%

This calculation includes emissions from the transportation of employees between their homes and Vestel Electronics facilities. There are no facilities that are excluded from Scope 1 and 2 at this time that would therefore require inclusion in this category.

Upstream leased assets


0.00 Not applicable 0.00% There are no facilities that are excluded from Scope 1 and 2 at this time that would therefore require inclusion in this category.


Evaluation status

metric tonnes CO2e





partners

Explanation

Downstream transportation and distribution

Not relevant, calculated

1346.00

Diesel/Gas oil emission factors that explained in IPCC(2006) are used to calculate employee commuting emissions.

0.29% This calculation includes the transportation emissions of sold products to domestic market and abroad markets

Processing of sold products


0.00 Not applicable 0.00% VESTEL does not currently have any major product lines that require additional processing and the majority of products are accounted for in the product LCAs.

Use of sold products


419978.02

Turkish Regulation "By-Law on Energy Performance of Buildings is used as reference to calculate end of life treatment of sold products.

89.53%

This calculation includes electricity consumption emmisions of sold products , Televisions, Set top boxes, smartphones, tablets and led lightings to domestic market and abroad markets.

End of life treatment of sold products


5683.99

Last year, BVQİ EIME program study result data done by our customer is used as reference to calculate end of life treatment of sold products. this study has been used as reference

1.21% BVQİ EIME program study result data done by our customer is used as reference to calculate end of life treatment of sold 9.800.000 pcs products.

Downstream leased assets


0.00 Not applicable 0.00% Not applicable

Franchises Not relevant, explanation provided


Investments Not relevant, explanation provided

0.00 It is assumed that this category is negligible

0.00%

Investments in the reporting year were 1 PVD Chrome plating machine, 1 AGV, 1 screw packaging machine, 1 Metal Cleaning Machine, 1 Tapeing Machine, 2 line automation machines, 1 ASM Machine1 DEK machine, 1 NUTEK Machine, 1 ASYMTEK Machine, 1 CYBEr Machine, 1 YXLON Machine,1 BTU Machine,2 Tape


Evaluation status

metric tonnes CO2e





partners

Explanation

Applicator Machines, 1 Chiller, 1 Mold Transport Car, 1 PIMM and 1 CNC Servo Double Arm Robot machines and they are already included in other categories.

Other (upstream) Not relevant, explanation provided


Other (downstream)



CC14.2

Please indicate the verification/assurance status that applies to your reported Scope 3 emissions


CC14.2a

Please provide further details of the verification/assurance undertaken, and attach the relevant statements

Verification or


Status in the


Type of

verification or assurance


Page/Section reference

Relevant standard

Proportion of

reported Scope 3 emissions verified (%)

CC14.3

Are you able to compare your Scope 3 emissions for the reporting year with those for the previous year for any sources?

Yes

CC14.3a

Please identify the reasons for any change in your Scope 3 emissions and for each of them specify how your emissions compare to the previous year

Sources of Scope 3

emissions

Reason for

change

Emissions

value (percentage)

Direction of change

Comment

Employee commuting Emissions reduction activities

1.48 Decrease Although increasing of employee quantity, the reason of decreasing is that the effective planning of employee pickup stations, commuting between factories, good contract management(from one service company to two service company).

Purchased goods & services


6.37 Decrease The reason of decreasing is that the effective transportation management(TM) based on Supply Chain Excellence project.

Downstream transportation and distribution

Mergers 25.83 Increase The reason of increasing is merge of facilities, increasing of manufactured products.

Use of sold products Emissions 4.23 Decrease The reason of decreasing is that product energy saving projects and legal

Sources of Scope 3

emissions

Reason for

change

Emissions

value (percentage)

Direction of change

Comment

reduction activities

requirements.

End-of-life treatment of sold products

1.72 Increase The reason of increasing is merge of facilities, increasing of manufactured products.

Business travel Emissions reduction activities

10.17 Decrease Although increasing of employee quantity, the reason of decreasing is that the effective planning of bussiness travels

Capital goods Change in output

999.00 Increase The reason of decreasing is that the capital goods/investments are different according to previous year.

Waste generated in operations


19.88 Decrease The reason of decreasing is that the decreasing of volumes of wastes and waste reduction activities which are supported by ongoing TPM,scrap management and Supply chain Excellence projects, Environmental programs.

Fuel- and energy-related activities (not included in Scopes 1 or 2)

Mergers 19.88 Increase The reason of increasing is that the merge of facilities, increasing of management level employee quantities.

CC14.4

Do you engage with any of the elements of your value chain on GHG emissions and climate change strategies? (Tick all that apply)

Yes, our suppliers Yes, our customers

CC14.4a

Please give details of methods of engagement, your strategy for prioritizing engagement and measures of success

(i) We have been working with Walmart since 2011 based on the Walmart Supplier Development Program. This program includes social responsibility issues, health&safety issues and also environmental management issues. Vestel Electronics awarded as self-audit status by Walmart at the end of 2012. Environmental

management chapter in this program covers all environmental issues i.e. waste management, legal compliance, natural resources saving. This program done with together Walmart help us to improve our environmental management as well as social responsibility, health&safety. (ii)We have been working with Swisscomm and based on this bussines relationship we are member of Ecovadis and supply our environmental and social data via its website. (iii) We are working EU retailers and they follow SEDEX,BSCI,ICS,FWC and all these code of conducts include environmental issues.Because of the audit and compliancy requirements, these help us to improve our our environmental management (iv)Vestel has started SCM(Supply Chain Excellence Project) in 2014. The SCM will help us to reduce total supply chain management cost, to terminate non-value adding processes , to increase productivity and to reach perfect order fulfilment. In the frame of this project , Vestel has been member of SCC(supply Chain council) and made investments on SNC(Supplier Network Collaboration) , SLC (Supplier Lifecycle Management) and TM(Transportation Management) modules.Based onthe SNC(Supplier Network Collaboration) Project, 166 supplier(%95 of total spend) was engaded of our value chain on GHG emissions and climate change strategies.

CC14.4b

To give a sense of scale of this engagement, please give the number of suppliers with whom you are engaging and the proportion of your total spend that they represent

Number of

suppliers

% of total spend (direct

and indirect)

Comment

166 95%

“Sustainability” is the key element of Vestel’s Environmental Compliance Management practices. Vestel reduces the environmental impacts of all the processes from production of raw material to disposal of product, complies with all the environmental law and regulations during the life cycle of product and commits this approach with its Environmental Policy. In order to manage the movement of raw materials into Vestel, certain aspects of the internal processing of materials into finished goods, and the movement of finished goods out of Vestel and toward the end consumer, Vestel has started SCM(Supply Chain Excellence Project) in 2014. The SCM will help us to reduce total supply chain management cost, to terminate non-value adding processes , to increase productivity and to reach perfect order fulfilment. In the frame of this project , Vestel has been member of SCC(supply Chain council) and made investments on SNC(Supplier Network Collaboration) , SLC (Supplier Lifecycle Management) and TM(Transportation Management) modules. Also Vestel established Supply Chain Academy and started to train 143 SCM process employees from different levels at VESTEL.

CC14.4c

If you have data on your suppliers’ GHG emissions and climate change strategies, please explain how you make use of that data

How you make use of the data

Please give details

Managing physical risks in the supply chain

Vestel uses all suppliers' data to improve capacity management, perfect order fulfilment, material and logistics costs, vendor capacity management and lead time. This project will reduce losses and unnecessary process and therefore it will help us to improve energy efficiency through Supply chain from suppliers to customers.

Managing the impact of regulation in the supply chain

Vestel SCM project also provides strict collaboration and communication tool with suppliers and subcontractors via Vestel Supplier Portal and Vestel RoHSNet portal. All Vestel supplier has unique user-password to see their material which they supply to Vestel and must comply necessary regulations via these web sites.

CC14.4d

Please explain why you do not engage with any elements of your value chain on GHG emissions and climate change strategies, and any plans you have to develop an engagement strategy in the future

Further Information

Module: Sign Off

Page: CC15. Sign Off

CC15.1

Please provide the following information for the person that has signed off (approved) your CDP climate change response

Name

Job title

Corresponding job category

ERSİN KÖSEOĞLU

MANAGEMENT SYSTEMS

Environment/Sustainability manager

Further Information

CDP 2016 Climate Change 2016 Information Request

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