ENKA’s Sustainability Targets: “Building a better future”

Climate change remains as one of the greatest challenges of our time, along with all the intertwined environmental, social and economic challenges, which it poses. It is also one of the greatest risks to protection of biodiversity, livelihoods of societies and also to the future of our business in all industries. Combating climate change requires a holistic approach with the environmental, social and economic aspects and it takes dedication, hard work and innovative ideas, and is only possible if each of us make the right choices every day.

As a signatory of the United Nations Global Compact since 2017, ENKA follows and supports the objectives of the Paris Agreement, which calls governments, companies, individuals to take action for reducing greenhouse gas emissions in order to limit the global warming to well below 2℃ compared to pre-industrial levels.

*Intergovernmental Panel on Climate Change (IPCC) findings were used as reference during the target setting process.

In order to achieve our goals, based on Greenhouse Gas Management Hierarchy (2020) of the Institute of Environmental Management and Assessment (IEMA), ENKA has prepared 10 key principles to ensure an integrated approach to environmental, social and also economic aspects.

10 Key Principles

Create

We will create awareness on climate change and sustainability among our employees and value chain and seek for innovations

Protect

During our operations, we will protect biodiversity, natural resources and livelihoods of societies

Eliminate

Before taking a business decision, we will consider the options to eliminate carbon emissions

Increase

We will increase the use of renewable energy in our operations and take opportunities for renewable energy investments.

Substitute

Where possible, we will choose the low carbon alternatives for equipment, materials and services

Reduce

We will prioritize resource efficiency to lower our carbon intensity and water withdrawal

Compensate

For the remaining emissions that we can’t avoid, we will offset through restoring and protecting forests and environmental projects

Partner

We will cooperate with or stakeholders, NGOs, institutions, academia through our value chain to solve problems, create innovative approaches and develop best practices

Enhance

We will work to contribute to socio-economic welfare of the local communities

Communicate

We will transparently communicate our progress, lessons learned from failures, industrial best practices both within the company and publicly through our journey

ENKA together with its subsidiaries operate in four main sectors; Engineering & Construction, Power Generation, Real Estate and Trade. Following the analysis performed on the historic data of all its subsidiaries; ENKA’s operations in Engineering & Construction (Construction + Manufacturing Facilities), Real Estate and Power Generation have been prioritized while setting up the targets. Since each sector has its own internal dynamics and processes, targets have been set for each of the industries.

Our Global Actions

Creating our own climate solution projects

Our teams in Design and R&D Centers of ENKA Group are using their engineering skills and solutions to help meet ENKA’s 2050 ambition to achieve net zero greenhouse gas emissions in its operations and avoid environmental impacts. Our engineers consider energy and resource efficiency and reducing environmental impacts while designing our projects, and they also seek for solutions and innovations to response climate change.

Facilities with auditable energy management system

ENKA and its subsidiaries currently have 5 facilities with an ISO 50001 system in place. By 2030, it is aimed to raise this number to 26, by accelerating our system set-up initiatives.

Partnering stakeholders

We proudly partner with and support industrial, community, student and academic organizations that are pursuing solutions to response climate change. Our support may take various forms such as project collaborations, mentorships, sponsorships, working group participations and chairing, investments etc.

Offsetting Residual Emissions

As ENKA, our primary goal is to prevent and reduce greenhouse gas emissions of our operations. For the unavoidable emissions, we will take action and conduct offsetting projects such as investing in natural carbon sinks (primarily forests) and environmental projects.

Lowering Scope 3 Emissions

Think before travel (TBT)

We will introduce Think Before Travel (TBT) Guideline to ENKA Group to reduce our business travel emissions. TBT guideline will ensure travel with purpose for the business travels of ENKA Group’s employees and it is aimed to achieve 10% of reduction by 2030 and 30% by 2040 in Scope 3 emissions originating from air travels.

Suppliers & Subcontractors

ENKA categorizes its suppliers and subcontractors according by total spent and criticality of the goods and services they provide and at the top of this categorization is the “high risk” group suppliers & subcontractors. ENKA commits to inform and/or train its suppliers and subcontractors and conduct Sustainability Audits at the 10% of the high risk group by 2030.

Executive Compensation and Incentives

ENKA’s senior executives receive variable compensation includes a criterion linked to the greenhouse gas emissions reduction target achievement of the relevant unit.

We also plan to include sustainability and climate change related projects of our employees to our incentive programs, by 2025, to accelerate the innovative ideas within our company.

Engineering & Construction

Sustainable EPC Projects

ENKA Headquarters

ENKA is committed to achieve net zero in 2030 for its direct emissions produced directly by ENKA’s Headquarters’ operations and indirect emissions, such as emissions from 3rd party electricity providers of the offices. The net zero commitment does not cover the sites of ENKA’s customers or ENKA’s Scope 3 emissions. The emissions sources in ENKA’s commitment to Net Zero 2030 inventory covers purchased electricity, natural gas used in ENKA HQs and refrigerants used in building air conditioning systems.

Scope 1 and Scope 2 emission reduction activities

Invest in energy consumption reduction initiatives.

Train 100% of HQs’ employees.

Increase the use of renewable energy.

Offset the remaining emissions through environmental projects.

Zero plastic waste for water supply.

Eliminate paper usage by fully implementing E-Cloud tools with paperless processes.

ENKA Projects

Our customers prefer ENKA as a solution partner for the provision of the design, engineering, procurement, construction and commissioning services they need for their complex projects in challenging geographies. The trust placed in ENKA has been earned from past projects that have been designed and constructed in a safe, cost-effective and timely manner, as well as from the sustainable solutions offered with a sense of environmental and social responsibility, and thus ENKA has been considered as a business partner that can contribute to the sustainability strategies and goals of its customers. As ENKA, we partner with our customers for sustainable development of communities and reducing our environmental impact while working on the key projects for delivering cleaner energy, transforming cities with greener buildings, building resilient infrastructure.

ENKA assesses social, environmental and economic impacts of its activities and sets its strategic orientation, considering these impacts and related risks & opportunities. Thus ENKA ensures that climate and sustainability risks are incorporated into its strategy and also project selection and investment decisions. In our investment and contracting projects, we integrate sustainability into each stage of the process, from planning and land acquisition to construction and commissioning.

ENKA has aimed to minimize the adverse impacts on nature and humans by closely following the developments arising in this direction all over the world, using the highest level of expertise, science, and technology in its investments, and has increased its efforts in this direction. In recent years, ENKA has started to work on transforming its old buildings into more environment-friendly new buildings that meet modern requirements, and has been awarded with LEED or equivalent green building certificates. In addition to its investment projects, ENKA also supports green buildings with LEED, BREEAM or other equivalent local certificates as a contractor as well.

In the fight against climate change, the energy sector’s transition to a low-carbon growth process and the acceleration of efforts in this direction play a vital role. However, considering the future of the energy sector, for safe energy supply, it is crucial to use of relatively clean-burning, constantly available and more reliable types of fuel efficiently, such as natural gas. ENKA considers natural gas as an important transition energy and uses its power plant design, engineering and construction experience for transition from coal and to transform open single-phase cycle natural gas power plants into much more modern and efficient dual-phase combined cycle power plants. This way, electricity production per unit of fuel and plant efficiency are increased and environmental impacts are reduced, and a secure energy supply is ensured. ENKA also prioritizes efficiency and low emission criteria in all of its energy projects.

With its availability, natural gas plays a vital role for decarbonization of the power generation, since natural gas releases almost half the greenhouse gas emissions compared to coal. With its expertise as an EPCC contractor, it is ENKA’s strategy to support the transition of the energy sector to a low carbon system and shift from coal through contracting combined cycle natural gas power plant projects.

ENKA considers its sustainability strategy and targets to combat climate change while determining the projects to which it will invest, participate or bid. In this context, we also seek for opportunities to expand our portfolio with solar energy, battery storage, carbon capture and storage, and hydrogen projects.

As ENKA, we aim to make each of our projects an opportunity for climate response. We set project-specific sustainability targets covering Scope 1 and Scope 2 reduction targets at the planning phase of each project and also develop best practices to reduce Scope 3 emissions.

Scope 1 and Scope 2 reduction activities

ENKA’s approach to Sustainable Engineering, Procurement and Construction is applicable to all its projects in Building Works, Infrastructure, Power Plants and Oil, Gas & Petrochemicals business lines.

By holding a Project Sustainability Workshop with the key participants for each project, ENKA commits to set project specific sustainability strategy and climate targets covering all phases of construction for the following and publish its performance against these targets in its annual sustainability report:

We are committed to delivering our promise to achieve our sustainability targets. In order to achieve our targets, ENKA projects’ main strategy will be:

Plan & Design for sustainable Engineering, Procurement and Construction processes
Reduce environmental footprint by using environmental friendly materials and resource efficient processes
Ensure energy and resource efficiency through design, implementation and behavioral change
Transition to low carbon fleet
Local procurement

Responsible supply chain management
Renewable energy for project use
Train, cooperate and collaborate
Reuse and recycle
Adopt a circular approach

Çimtaş Facilities

By 2030*, Çimtaş Steel, Cimtas Pipe, Çimtaş Precision Machining, Çimtaş Shipyard and Cimtas Ningbo will

Reduce Emmission intensity per ton of production by 34%**

Reduce Scope 1 & 2 GHG emission intensity per ton of production by 34% by 2030.
Achieve 14% of GHG emission intensity reduction by 2025.

Achieve 14.8 MWp DC, 12.3 MWe AC Installed Renewable Energy Capacity

Invest in on-site renewable energy production with total capacity of 14.8 MWp DC, 12.3 MWe AC by 2030.

Our Actions

Improve machinery & equipment and optimize processes to move toward less energy-intensive processes.
Train employees and subcontractors.
Improve internal procedures to ensure compliance with ENKA’s sustainability commitments.
Seek for opportunities to recycle & reuse process water and rainwater harvesting.
Keep domestic water consumption under 15 liters / person-hours.
Ensure waste reduction and seek for opportunities to set circular economy practices.
Invest in R&D to develop low-carbon products.

Towards 2050

Follow innovations
R&D for low carbon product portfolio
Use low carbon energy options for processes
Collaborations

*	Base year for Çimtaş Group’s goals is 2021 since this was the first year all the Çimtaş Group companies started GHG emissions reporting.
**	While determining this value, the calculation was made by considering the emission weights of Çimtaş Companies within the Çimtaş Group.
*******	Çimtaş Precision Machining has a different range of product line which cannot be included in the intensity calculations based on tonnes. Çimtaş Precision Machining will achieve 4% of reduction in emission intensity per equivalent units of production (EUP) by 2030.

Real Estate

By 2030, ENKA’s Real Estate subsidiaries will

Reduce Scope 1&2 total emissions by 27%.

Ensure 5% reduction in Scope 1&2 emissions with the urgent actions – through asset efficiency measures (Improve operating systems such as heating, cooling systems and lighting, heat recovery).

Improve energy management through ISO 50001 certification for all leased and operated buildings.

Increase renewable energy purchasing to 53.5%.

6.5% water withdrawal reduction with the help of rain water harvesting systems and operational reduction measures.

Have 95% of the tenant agreements signed as of 2023 in the green portfolio.

Developments

Adapt and ensure that all the systems (lighting, cooling, heating etc.) of the buildings are resource efficient.
Ensure energy efficiency measures are integrated and advancing towards our climate pledge.
Carbon reduction & removals through responsible sourcing and recycling/reusing.
Compact waste to reduce waste volume and waste transport related emissions.
Communicate & collaborate & influence tenants to reduce their environmental impact.
Maximize renewable energy purchasing while reducing the electricity consumption in assets.

Take opportunities to offset the residual emissions through environmental projects.
Train employees and subcontractors to ensure behavioral change to achieve our commitment.
Improve internal procedures to ensure compliance with ENKA’s sustainability commitments.
Adopt the innovations to our systems by following the sectoral international developments.
Seek for collaborations (sectoral, academic, institutional, NGOs).

Power Generation

Maintain the state-of-the-art technology

As an energy producer, ENKA is aware of its responsibility and the vital role in transition to low carbon economy. We aim to reduce the carbon intensity of the energy we produce by investing in new technologies to maintain the state-of-the-art technology and infrastructure of our plants.

We aim to keep ENKA Power Plants’ greenhouse gas emissions per unit energy that is produced, under 400 gCO2 e/kWh.

We commit to maintain ISO 50001 Energy Management System certification ensuring energy efficiency of our facilities.

We will continue to invest in our water management systems to reduce the water withdrawal and consumption of our plants.

More on Our Global Sustainability Targets

Advancing Business
Empowering People
Protecting Planet

*	We will conduct at least 1 audit to prevent corruption and bribery per year, in all projects and subsidiaries.
*	We will conduct Sustainability Audits (covering environment, ethics and compliance, human rights, social compliance and occupational health & safety) on 10% of “high risk” suppliers and subcontractors.
*	We are committed to have at least 25% women members in our Board.
*	We have set our sights on organizing and assembling “ENKA Sustainability Congress” in 2027 with participants from various sectors and societies.
*	ENKA Schools will continue their support of education by conducting partnerships and collaboration at least once a year with a public school in close proximity regarding sustainability activities and training.
*	We aim to provide ENKA Code of Business Conduct training to 100% of our employees in the primary risk group.
*	Our aim is to have our customer satisfaction rate at 95% in all group companies.

*	We aim to have women employees comprise 35% of all ENKA Group white collar employees by 2030.
*	All ENKA İnşaat projects are expected to complete at least 2 social responsibility projects in their lifetime.
*	We intend to conduct an employee loyalty survey once every two years and to increase satisfaction ratio to 90% by 2030.
*	Being the most important of our stakeholders, we genuinely care about our employees and intend to increase our training investment per year by 5% every year until 2030.
*	Health & safety of our employees is a core value in every work activity we conduct. We will continue to work in accordance with our Zero Incident Policy with no compromises at all.
*	We encourage our employees to take part in corporate volunteering and aim to have 5% of our white collar employees participate in corporate voluntary projects.
*	In order to generalize sustainability studies, we will continue supporting development of youth by sponsoring student assemblies at least 2 times every year.
*	Intending to generalize corporate volunteering and voluntary approach in our community, we aim to conduct at least 5 voluntary work projects every year.
*	We will ensure that each and every student in ENKA Schools to participate in at least 1 social responsibility project every year.
*	ENKA Foundation intends to increase voluntary community investment amount by 20% by 2030.
*	ENKA Schools Spring Teacher’s Symposium, which is open for public school teachers, participant amount is meant to be increased by 10% by 2030.
*	As ENKA Group we aim to collaborate at least 5 times every year with NGOs and other organizations that conduct sustainability studies.

*	To decrease our blue water footprint, we plan on realizing at least 2 projects that aim water reuse within ENKA Group.
*	Working with diligence, we are committed to never encountering a Tier III (>20m3) environmental incident in any ENKA subsidiary.
*	Addressing the needs of our planet, we intend to conduct at least 2 projects within ENKA Group to increase renewable energy use.
*	We strive to decrease our carbon footprint and commit to contributing to carbon offsetting by supporting at least 1 forestation project ever year.
*	As ENKA Group, we intend to never compromise from our policy that banned PET bottle usage.

Advancing Business

*	We will conduct at least 1 audit to prevent corruption and bribery per year, in all projects and subsidiaries.
*	We will conduct Sustainability Audits (covering environment, ethics and compliance, human rights, social compliance and occupational health & safety) on 10% of “high risk” suppliers and subcontractors.
*	We are committed to have at least 25% women members in our Board.
*	We have set our sights on organizing and assembling “ENKA Sustainability Congress” in 2027 with participants from various sectors and societies.
*	ENKA Schools will continue their support of education by conducting partnerships and collaboration at least once a year with a public school in close proximity regarding sustainability activities and training.
*	We aim to provide ENKA Code of Business Conduct training to 100% of our employees in the primary risk group.
*	Our aim is to have our customer satisfaction rate at 95% in all group companies.

Empowering People

*	We aim to have women employees comprise 35% of all ENKA Group white collar employees by 2030.
*	All ENKA İnşaat projects are expected to complete at least 2 social responsibility projects in their lifetime.
*	We intend to conduct an employee loyalty survey once every two years and to increase satisfaction ratio to 90% by 2030.
*	Being the most important of our stakeholders, we genuinely care about our employees and intend to increase our training investment per year by 5% every year until 2030.
*	Health & safety of our employees is a core value in every work activity we conduct. We will continue to work in accordance with our Zero Incident Policy with no compromises at all.
*	We encourage our employees to take part in corporate volunteering and aim to have 5% of our white collar employees participate in corporate voluntary projects.
*	In order to generalize sustainability studies, we will continue supporting development of youth by sponsoring student assemblies at least 2 times every year.
*	Intending to generalize corporate volunteering and voluntary approach in our community, we aim to conduct at least 5 voluntary work projects every year.
*	We will ensure that each and every student in ENKA Schools to participate in at least 1 social responsibility project every year.
*	ENKA Foundation intends to increase voluntary community investment amount by 20% by 2030.
*	ENKA Schools Spring Teacher’s Symposium, which is open for public school teachers, participant amount is meant to be increased by 10% by 2030.
*	As ENKA Group we aim to collaborate at least 5 times every year with NGOs and other organizations that conduct sustainability studies.

Protecting Planet

*	To decrease our blue water footprint, we plan on realizing at least 2 projects that aim water reuse within ENKA Group.
*	Working with diligence, we are committed to never encountering a Tier III (>20m3) environmental incident in any ENKA subsidiary.
*	Addressing the needs of our planet, we intend to conduct at least 2 projects within ENKA Group to increase renewable energy use.
*	We strive to decrease our carbon footprint and commit to contributing to carbon offsetting by supporting at least 1 forestation project ever year.
*	As ENKA Group, we intend to never compromise from our policy that banned PET bottle usage.