Scope 1 and Scope 2 emissions of the Group companies within the reporting scope are calculated, and since 2020, these emissions have been verified under the Assurance Engagements on Greenhouse Gas Statements (ISAE 3410) framework. Necessary actions have been planned to ensure the systematic calculation, verification, and documentation of Scope 1, Scope 2, and Scope 3 emissions (from upstream and downstream activities) for all companies within Kibar Group.

For the reduction of greenhouse gas emissions, the following activities/planning continue:

• Expansion of the current installed capacity for electricity generation from renewable energy sources;
• Maximizing energy efficiency;
• Modernization and transformation of manufacturing processes—prioritizing energy-intensive processes—to enhance operational efficiency;
• Development of new low-carbon, sustainable products that meet customer needs; and
• Implementation of electrification projects for processes and vehicles previously powered by fossil fuels.

It aims to contribute to the establishment of a system that enables the circular recycling of all resources used throughout the entire process, from product design to production and consumption. Product-specific Life Cycle Assessments are carried out. Efforts continue to extend product life, use natural resources efficiently, minimize waste generation, and promote recycling and reuse.

Digitalization

Efforts to digitalize business processes are ongoing. Data analytics platforms are being developed to support continuous process improvement, and systematic monitoring and reporting systems are being established.

Development of a sustainable supplier portfolio

Through the implementation of the K-STAR Supplier Sustainability Program, efforts are underway to develop a sustainable supplier portfolio and encourage suppliers to align with the green transformation.

Environmental, social, and governance (ESG) factors are taken into account in investment decisions. Related risks are identified, and necessary actions are planned to mitigate them. Necessary activities are underway to ensure compliance with taxonomy and relevant international regulations, while corporate capacity is being strengthened to implement projects using sustainable financing tools aimed at achieving the net-zero emissions target.

Preparing the workforce for the green transformation

The Group operates with the awareness that sustainable human resources management plays a crucial role in successfully achieving the net zero emissions target. Sustainability values are integrated into the corporate culture, training programs are organized to facilitate compliance with legal regulations and standards, and talent development initiatives are established to foster the acquisition of new skills.