CDP 2014 Investor CDP 2014 Information Request CDP 2014 Investor CDP 2014 Information Request VESTEL...

CDP CDP 2014 Investor CDP 2014 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 employes, 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. The Company is among the leading ODMs ( Original Design Manufacturers ) in World Wide LCD TV market, as ranked #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 2013” report.

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

Tue 01 Jan 2013 - Tue 31 Dec 2013

CC0.3

Country list configuration Please select the countries for which you will be supplying data. 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 sectors, companies in the oil and gas industry, companies in the information technology and telecommunications sectors and companies in the food, beverage and tobacco sectors should complete supplementary questions in addition to the main questionnaire. If you are in these sectors (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 manufacturing plant of VESTEL Group of Companies. Employing more than 5000 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; Chassis Production,Plastic Injection,Paint Shop,Styrofoam Production, Display Panel Production,Final Assembly Manufacturing 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, making VESTEL a World Class Manufacturer.

Module: Management

Page: CC1. Governance

CC1.1

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

All employees Recognition (non-monetary)

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.

Business unit managers

Recognition (non-monetary)

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 Recognition (non-monetary)

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

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 award of VESTEL can be seen attached.

Attachments

https://www.cdp.net/sites/2014/59/21159/Investor CDP 2014/Shared Documents/Attachments/InvestorCDP2014/CC1.Governance/TPM_Mükemmel_Fabrika_Odulu_Sertifika_Vestel_Aslı.jpg

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

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.

1 to 3 years

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

Frequency

of monitoring

To whom are results

reported

Geographical areas

considered

How far into

the future are risks

considered?

Comment

evaluation of 9 risk item financial risks, operational, environmental technological, etc. are included in the risk management system.

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.

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 and eco TVs in 2013 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

CC2.3

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

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.

Focus of legislation

Corporate Position

Details of engagement

Proposed legislative solution

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?

TESĠD 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,

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

Trade association

Is your position

on climate change

consistent with

theirs?



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.

TÜRKBESD Consistent

White Goods Manufacturers‟ Association of Turkey, whose 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,

Vestel is one of the board members of TURKBESD and works 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.

Trade association

Is your position

on climate change

consistent with

theirs?



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]).

TUBĠSAD 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 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

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 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

Trade association

Is your position

on climate change

consistent with

theirs?



◦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

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.

CC2.3d

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

CC2.3e

Do you fund any research organizations to produce or disseminate public work on climate change?

CC2.3f

Please describe the work and how it aligns with your own strategy on climate change

CC2.3g

Please provide details of the other engagement activities that you undertake

CC2.3h

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) 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.

CC2.3i

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 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

(metric tonnes CO2e)

Target year

Comment

Abs13 Scope 1+2

100% 10% 2010 53176.15 2020 Years are both fiscal, that is base year is FY2010 and target year is FY2020.

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

Target year

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

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

ID

% complete (time)

% complete (emissions)

Comment

Abs10 30% 0%

Vestel Electronics decided to takeover and merge with Vestel Digital has 60.000m2 area and 1000 employee.Also due to the nature of current TV production sector, production method is changed from panel-in-tv-out to cell-in-tv-out This merge and production method operation naturally caused a significant increase in the energy consumption of Vestel Electronics. Therefore we couldn't catch the sub-target in 30% time period (2013) of the total target time(2020).

CC3.1e

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

Does the use of your goods and/or services directly enable GHG emissions to be avoided by a third party? Yes

CC3.2a

Please provide details of how the use of your goods and/or services directly enable GHG emissions to be avoided by a third party Our company manufactures high technology LED TVs which are able to achieve 100 % energy savings compared to LCD TVs. Considering that there are 18 million houses in Turkey and assuming each has minimum 1 TV in operation for 5 hours every day, exchanging all these TV units with Vestel TVs would save up to 1,000 GWh energy which corresponds to an GHG emission reduction of 617,000 tCO2e.

CC3.3

Did you have emissions reduction initiatives that were active within the reporting year (this can include those in the planning and 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* 8 1438.44

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)

Annual monetary savings

(unit currency -

as specified in CC0.4)

Investment required

(unit currency -


Payback period

Estimated lifetime of the initiative, years

Comment

Energy efficiency: Building services

UV Lamp project 10.16 14418 1200 <1 year continuous (2 lamps a 2 years for each line)

In order to dry silicone used on some materials, UV lamps are used L-15, L-16, L-17 lines. UV lamps have 1500 Watt power and long time procurement period. Instead of UV lamps, 400W power mercury vapour lamps were started to use with new balast system..

Energy efficiency: Processes

Prevention of steam leakages in molds

19.22 3465 300 <1 year continuous(mold usage period)


Prevention of steam loses in left and right molds

56.07 10250 3000 <1 year continuous(mold usage period)


Prevention of steam leakages in ERL-1270 machine

32.04 5750 500 <1 year continuous(machine usage period)


Cancelling of P1.2 pump from ES600/4 machine

19.99 7550 200 <1 year continuous(machine usage period)


Heat jackets projects for Injection machines

416.85 43700 55000 1-3 years

continuous(machine usage period)


Energy saving project

132.46 50024 500 <1 year continuous

Energy efficiency:

Control of engine cycle Engel

751.65 243700 403200 1-3 years

continuous(machine usage period)

Activity type

Description of activity

Estimated annual CO2e

savings (metric tonnes CO2e)

Annual monetary savings

(unit currency -


Investment required

(unit currency -


Payback period

Estimated lifetime of the initiative, years

Comment

Processes Injection machines by using inverter

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.

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 700.000 TRY investment cost .

CC3.3d

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

Further Information

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

Page/Section reference

Attach the document

In voluntary communications (underway) – previous year attached

pg.251-291 https://www.cdp.net/sites/2014/59/21159/Investor CDP 2014/Shared Documents/Attachments/CC4.1/UNglobalcompact-2013.pdf

In mainstream financial reports (complete)

pg.28-32 https://www.cdp.net/sites/2014/59/21159/Investor CDP 2014/Shared Documents/Attachments/CC4.1/faaliyet_aralik_2013.pdf

Further Information

Module: Risks and Opportunities

Page: CC5. Climate Change Risks

CC5.1

Have you identified any 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 risks 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

If we fail to comply with

Reduced demand for

Up to 1 year

Direct Very unlikely

High loose %95 of market

Following and

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

regulations and standards

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.

goods/services

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

Product labeling 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.

Reduced demand for goods/services

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 risks that are driven by change 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 maangement


Other physical climate drivers

Extreme weather events may cause delays in product


Up to 1 year

Direct Unlikely Medium-high

Shipment delays, loose customers, punishment

Shipment Operations Group, alternative shipment

Department costs

Risk driver

Description

Potential impact

Timeframe

Direct/ Indirec

t

Likelihood

Magnitude of

impact

Estimated financial

implications

Management

method

Cost of management

exports to countries worldwide.

s methodes

CC5.1c

Please describe your 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


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


Risk driver

Description

Potential impact

Timeframe

Direct/ Indirec

t

Likelihood

Magnitude of

impact

Estimated Financial

Implications

Management

method

Cost of management

market share.

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 stock prices.

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


CC5.1d

Please explain why you do not consider your company to be exposed to 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 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 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 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 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 energy efficiency improvement.

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 eco-labelling.

Product labeling 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

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.

Opportunity driver

Description

Potential impact

Timeframe

Direct/Indirect

Likelihood

Magnitude of impact

Estimated financial

implications

Management

method

Cost of

management

such expected regulation well ahead of its enforcement, we have gained competitive advantage in our market.

CC6.1b

Please describe the 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 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 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.


Up to 1 year

Indirect (Client)

Virtually certain

High

We expect that the eco TV and LED TV market share will expand up to 98 % in 2014 and continue to increase to an estimated 100 % in 2015. We also expect that the share of our eco-products will be 100 % in 2015, as we observe from the buying trends, which favor eco-friendly design and energy efficiency. A review of the global market

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

We have made investment worth of 61 million USD in our energy-efficient LED TV production plant for business expansion and our R&D investments reached up to 60 million USD in 2013 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 Electronics is the manufacturer of Eco TVs with reduced power consumption in stand-by and operation mode and energy efficient LED TVs.

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 98 % in 2014 and continue to increase to an estimated 100 % in 2015. We also expect that the share of our eco-products will be 100 % in 2015, as we observe from the buying trends, which favor eco-friendly



Opportunity driver

Description

Potential impact

Timeframe

Direct/ Indirect

Likelihood

Magnitude of impact

Estimated financial

implications

Management method

Cost of

management

design and energy efficiency. A review of the global market

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 98 % in 2014 and continue to increase to an estimated 100 % in 2015. We also expect that the share of our eco-products will be 100 % in 2015, as we observe from the buying trends, which favor eco-friendly design and energy efficiency. A review of the global market



CC6.1d

Please explain why you do not consider your company to be exposed to 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 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 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)

Base year

Scope 1 Base year emissions (metric tonnes

CO2e)

Scope 2 Base year emissions (metric

tonnes CO2e)

Fri 01 Jan 2010 - Fri 31 Dec 2010

1816.31 52608.99

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: kgCH4 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 2013 - 31 Dec 2013)

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 2588.12

CC8.3

Please provide your gross global Scope 2 emissions figures in metric tonnes CO2e 59771.16

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? No

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 Scope 2 emissions

excluded from this source

Explain why the source is excluded

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 1

emissions: Uncertainty

range

Scope 1

emissions: Main

sources of uncertainty

Scope 1 emissions: Please

expand on the uncertainty in your data

Scope 2

emissions: Uncertainty

range

Scope 2

emissions: Main

sources of uncertainty

Scope 2 emissions: Please expand on the

uncertainty in your data

More than 5% but less than or equal to 10%

Assumptions Other: supplier's data

We used published default emission factors of IPCC 2006 for natural gas and diesel oil which have certain uncertainty. We used supplier data related to natural gas consumption.

More than 5% but less than or equal to 10%

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.

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

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 your reported Scope 2 emissions No third party verification or assurance

CC8.7a

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

Type of verification or assurance



Relevant standard

Proportion of Scope 2 emissions verified (%)

CC8.8

Please identify if any data points other than emissions figures have been verified as part of the third party verification work undertaken

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 2013 - 31 Dec 2013)

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 1643.08

Mobile Combustion 724.70

Generators 110.17

CC9.2e

Please break down your total gross global Scope 1 emissions by legal structure

Legal structure


Further Information

Page: CC10. Scope 2 Emissions Breakdown - (1 Jan 2013 - 31 Dec 2013)

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 metric tonnes CO2e

Purchased and consumed electricity, heat, steam or cooling

(MWh)

Purchased and consumed low carbon electricity, heat, steam or cooling accounted for CC8.3 (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


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 1912.90

Design 1474.28

Production 55509.47

Storage 874.51

CC10.2d

Please break down your total gross global Scope 2 emissions by legal structure

Legal structure


Further Information

Page: CC11. Energy

CC11.1

What percentage of your total operational spend in the reporting year was on energy? More than 0% but less than or equal to 5%

CC11.2

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

Energy type

MWh

Fuel 9673.77

Electricity 64496.82

Heat 3198.89

Steam 53634.66

Cooling

CC11.3

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

Fuels

MWh

Natural gas 7143.85

Diesel/Gas oil 2529.92

CC11.4

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

Basis for applying a low carbon emission factor

MWh 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.

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

Comment

Emissions reduction activities

Divestment

Acquisitions

Reason

Emissions value

(percentage)

Direction of change

Comment

Mergers

Change in output

Increase

Change in methodology

Change in boundary

Change in physical operating conditions

Unidentified

Other 8.3 Increase

Increasing of gross global emmisions according to previous year, (i) 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 2013 as steam injection. If this process did not change, %3 emmision improvement would be gained according to previous year. (ii)VESTEL Electronics merges with Vestel Digital (iii)Production methodolgy is changed from panel-in-tv-out to cell-in-tv-out

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

Metric denominator

% change from

previous year

Direction of change from

previous year

Reason for change

0.00001545 metric tonnes CO2e

unit total revenue

9.96 Decrease Although Vestel Electronics increased steam usage and change production type and merged with Vestel Digital, this figure has decreased due to studies about reducing carbon emission such as process improvements, designing new

Intensity figure

Metric numerator

Metric denominator

% change from

previous year


previous year

Reason for change

processes, usage of new technology equipments,TPM Suggestion Evaluation and Appreciation System etc.

CC12.3

Please describe your gross global combined Scope 1 and 2 emissions for the reporting year in metric tonnes CO2e per full time equivalent (FTE) employee

Intensity figure

Metric numerator

Metric denominator

% change from

previous year


previous year

Reason for change


FTE employee

1.39 Decrease

Although Vestel Electronics increased steam usage and change production type and merged with Vestel Digital, this figure has decreased due to studies about reducing carbon emission such as process improvements, designing new processes,usage of new technology equipments, TPM Suggestion Evaluation and Appreciation System etc.

CC12.4

Please provide an additional intensity (normalized) metric that is appropriate to your business operations

Intensity figure

Metric numerator

Metric denominator

% change from

previous year

Direction of change from previous year

Reason for change


unit of production

29.14 Increase

Although it is not appropriate intensity for consumer product manufacturer (beacuse different electronics products manufacturing every year, size of TVs is increasing annually etc...) , "unit of production" intensity is provided only for an sample.

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

primary data

Explanation

Purchased goods and services

Relevant, calculated

5610.48 Average data is used to calculate transportation of purchased raw materials.

0.01% This calculation includes the transportation emissions of plastic raw materials which are purchased during 2013

Capital goods Relevant, calculated

8.88 Average data is used to calculate transportation of capital goods.

0.01%

This calculation includes the transportation emissions of 1 PVD(HV HIGH VACUM PVD METALLIZING +SPLUTTERING PLANT -8930) machine which is purchased during in 2013

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


708

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 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 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


75.11

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

2818.07

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

0.01% This calculation includes all business flights of Vestel Electronics employee.

Employee commuting Relevant, calculated

6551.77

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

0.01% This calculation includes emissions from the transportation of employees between their homes and Vestel Electronics facilities.

Upstream leased assets


0 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.

Downstream Not relevant, 1057.39 Diesel/Gas oil emission factors that 0.01% This calculation includes the transportation

Sources of Scope 3 emissions

Evaluation status

metric tonnes CO2e

Emissions calculation methodology

Percentage of emissions

calculated using

primary data

Explanation

transportation and distribution

calculated explained in IPCC(2006) are used to calculate emissions of fuel and energy related activities(not included in Scope 1 or 2).

emissions of sold products to domestic market and abroad markets

Processing of sold products



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 Relevant, calculated

21442821840

BVQĠ EIME program study result data done by our customer is used as reference to calculate end of life treatment of sold products.

99.92%

BVQĠ EIME program study result data done by our customer is used as reference to calculate "energy usage" of sold 8.122.281 pcs products for 10 years life time.

End of life treatment of sold products


4710.92

BVQĠ EIME program study result data done by our customer is used as reference to calculate end of life treatment of sold products.

0.01%

BVQĠ EIME program study result data done by our customer is used as reference to calculate end of life treatment of sold 8.122.281 pcs products.

Downstream leased assets


0 Not applicable 0.00% Not applicable

Franchises Not relevant, explanation provided


There is no any franchising activities at VESTEL ELECTRONICS. This operations are managed by another company named VESTEL TĠCARET A.ġ.

Investments Relevant, not yet calculated

0 It is assumed that this category is negligible

0.00% Investments in the reporting year were only PVD machine and it is already included in other categories.

Other (upstream) Not relevant, explanation provided


Other (downstream) Not relevant, explanation provided


CC14.2

Please indicate the verification/assurance status that applies to your reported Scope 3 emissions No third party verification or assurance

CC14.2a

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

Type of verification

or assurance



Relevant standard

Proportion of 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

Capital goods Other: less capital goods needs

59.45 Decrease Because VESTEL almost complete eqıipment and machine park for 2013 production targets in 2012 , only PVD machine for new product types has been purchased in 2013.

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

Emissions reduction activities

9.82 Decrease Appropriate department and process installation in facilities, multiple usage of cars, usage of company vehicles like buses etc..

Business travel Mergers 35.79 Increase The reason of increasing is that the merge of facilities, increasing of employee quantities and new market searchs.

Use of sold products Change in methodology

100 Increase BVQĠ EIME result data is used for calculation of this year.

Employee commuting Mergers 40.20 Increase The reason of increasing is merge of facilities, increasing of employee quantities and increasing of employee pickup stations

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 customers

CC14.4a

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

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

Comment

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

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

ERSĠN KÖSEOĞLU

MANAGEMENT SYSTEMS

Environment/Sustainability manager

Further Information

CDP 2014 Investor CDP 2014 Information Request

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