Integrated Annual Report 2023

Energy Growing with the Power of Nature

"Existing in harmony with nature, not dominating it, brings true power and sustainable success."

CHAPTER 1 Introduction

2 Report and Company Information
4 Message from the General Manager

CHAPTER 2 About Aydem Renewables

12 Aydem Renewables in Brief
16 Aydem Holding Group Companies
19 Operation Map
20 Vision, Mission, Strategy and Values 22 Capital, Shareholding Structure and Subsidiaries
24 Milestones
27 Highlights of 2023
30 Main Indicators
36 Awards and Achievements

CHAPTER 3 Corporate Governance

40 Board of Directors
46 Assessment of the Board of Directors
49 Senior Management
52 Financial Benefits Provided to Board Members and Senior Executives
52 Declaration of Compliance with Corporate Governance Principles
54 Committees and Policies
62 General Assembly
62 Internal Audit and Control Activities
63 Ratings

CHAPTER 4 Value Creation Structure

65 Sustainable Governance Structure
69 Sustainability Strategy
71 Risk Management and Practices
87 Objectives and Performance Indicators
88 Stakeholder Engagement
91 Double Materiality Assessment
96 Value Creation Model
100 Contribution to Sustainable
Development Goals (SDGs) 106 The Sustainability Principles
Compliance Framework 118 Sustainable (Green) Financing
Framework

CHAPTER 5 External Environment

126 Overview of the Turkish Economy and Renewable Energy Sector in 2023

CHAPTER 6

Financial Assets

128 Investments and Areas of Activity
134 Total Installed Capacity

CHAPTER 7

Operational Assets

136 Hydroelectric Power Plants
142 Wind Power Plants
145 Hybrid Solar Power Plant
146 Geothermal Power Plant 147 Operational Efficiency
150 Availability and Business Continuity

CHAPTER 8

Knowledge and Innovation Assets 155 R&D and Innovation
158 Cyber Security and Information Privacy
160 Digital Transformation
162 Infrastructure and Technology
163 Data Management

CHAPTER 9 Environmental Assets

166 Environmental Management System 168 Combating Climate Change and
Adaptation
172 Renewable Energy Supply
177 Emissions Trading
179 Energy Efficiency
182 Water Use and Management
184 Circular Economy and Waste
Management 186 Biodiversity

CHAPTER 10

Human Resources Asset

190 Human Resources
194 Organization Structure
196 Ethics, Transparency and Anti-Corruption
197 Diversity, Equality and Inclusive Workplace
200 Talent and Performance Management
204 Recruitment Processes
206 Employee Training and Development
210 Employee Satisfaction
212 Remuneration Management
214 Personnel Management and Fringe Benefits
216 Occupational Health and Safety

Growing with Investments Our Advantages

As a workplace with the International Occupational Safety Outstanding Achievement Award and Great Place to Work® Certificate, we prioritize people. We take our place in the BIST Sustainability Index and accelerate our efforts for a better future with our identity as Turkey's leader in the Environmental-Social-Governance score.

1. Aydem Renewables' vision is shaped on the basis of being in harmony with nature, guided by science and technology.
2. This report tells the story of a renewable energy company that respects the power of nature and believes that existing in harmony with it is the key to building a clean and sustainable energy future.

CHAPTER 11 Social Assets

224 Supply Chain Management
226 Corporate Social Responsibility
232 Engagement with Local Communities

CHAPTER 12 Financial Status and Dividend Distribution

234 Information on Private and Public Audits Conducted in 2023
234 Dividend Distribution Policy
236 Dividend Distribution Proposal 2023
237 Dividend Distribution Table 2023

CHAPTER 13 Other Considerations

238 Changes in the Accounting Period
242 Legislative Amendments in 2023 249 Amendments to the Articles of Association
249 Information on Lawsuits Filed Against the Company that May Affect the Financial Position and Activities of the Company and Their Possible Results
250 Explanations on the Administrative and Judicial Sanctions Imposed on the Company and the Members of the Board of Directors of the Company Due to Practices Contrary to the Provisions of the Legislation
250 Information on Own Shares Acquired by the Company
251 Information on Privileged Shares
252 Information on Debt Instruments
252 Donations and Aids
253 Changes Between Reporting Period and Preparation Period of the Report
254 Other Issues

CHAPTER 14

Financial Information

256 Statement of Responsibility
258 The Annual Affiliation Report
259 Statement on (Integrated) Annual Report 2023
260 The Independent Auditor's Opinion on the Board of Directors' Annual (Integrated) Report
262 Sustainable (Green) Financing Framework Allocation and Impact Report Independent Assurance Statement
263 As of December 31, 2023 Consolidated Financial Statements and Independent Auditor's Report

CHAPTER 15

Attachments
270 Declarations of Independence
274 Corporate Governance Information Form (CGIF)
288 Corporate Governance Compliance Report (CGCR)
296 Performance Tables
302 GRI Index
308 TSRS Index
309 ESRS Index 313 SASB Index

Contact

Report and Company Information

About the Report

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Sustainability and ESG Context

The 2023 Integrated Annual Report (Report) of Aydem Yenilenebilir Enerji (Aydem Renewables) addresses in detail the company's performance in environmental, social and managerial (ESG) as well as financial areas in line with its strategic goals and priorities.

This Report, which is the main source of disclosure regarding the Company's ESG performance, should be evaluated with the Policies on Aydem Renewables website.

Report Period

The data in the report covers the period between January 1, 2023 and December 31, 2023, unless otherwise stated.

The report includes the integrated business model, risk and opportunity management, priorities, future strategies, stakeholder communication and performance indicators in financial, environmental, social and managerial areas that summarize Aydem Renewables' ability to generate long-term value for its stakeholders.

Aydem Renewables' Ecosystem

The information contained in the report covers all activities of Aydem Renewables . In order to accurately reflect the integrity of the Company, the report also includes information on Sarı Perakende Enerji Satış ve Ticaret Inc., Eytur Energy Electricity Generation and Trade Inc, Başat Electricity Generation and Trade Inc Inc. and Akköprü Renewable Energy Generation Inc, which are wholly owned subsidiaries of Aydem Renewables In line with the financial reporting principles used in the report, the financial data of the subsidiaries are shared by including them in the performance figures. In this context, references to "Aydem Renewables", "Company", "we", "us" and "our" and all similar expressions in the report belong to Aydem Renewables and its subsidiaries subject to consolidation, unless otherwise stated or unless the content shared requires otherwise.

Standards and Frameworks

Aydem Renewables 2023 Integrated Annual Report has been prepared by considering the following standards, frameworks and requirements of ESG rating companies.

· Global Reporting Initiative (GRI)
· United Nations Sustainable Development Goals (UN SDGs)
· United Nations Women's Empowerment Principles (UN WEPs)
· United Nations Global Compact (UNGC)
· Sustainability Accounting Standards Board (SASB) -Renewable Resources and Alternative Energy (Solar energy technology and project developers)
· IFRS
· Turkish Sustainability Reporting Standards (TSRS)
· European Sustainability Reporting Standards (ESRS)

CMB and Annual Report References

Explanations on Aydem Renewables' compliance with the principles in the Capital Markets Board (CMB) Corporate Governance Principles and Sustainability Principles Compliance Framework are included in the report.

Audit Approach

A statement of limited assurance has been obtained from Güney Bağımsız Denetim ve SMMM A.Ş., an independent auditor, for selected ESG indicators in the report in accordance with International Standard on Assurance Engagements 3000 - "Standard on Assurance Engagements Other Than Independent Audits or Reviews of Historical Financial Information" ("ISAE 3000" Revised) and International Standard on Assurance Engagements 3410 - "Assurance Engagements on Greenhouse Gas Statements" ("ISAE 3410") issued by the International Auditing and Assurance Standards Board.

The Independent Assurance Statement, including the list and scope of the assurance indicators, can be found on pages 260-261 of the report. The financial information in the report has been audited by the same independent audit firm. The related Independent Auditor's Statements can be found on page 262.

Throughout the report denotes externally assured value.

About the Company

Trade Name Aydem Yenilenebilir Enerji A.Ş. Trade Registry Number 13798 Company Registration Date 06.07.1995 Mersis Number 0165003740400011 Issued Capital 705,000,000.00 TL Registered Capital Ceiling 2,000,000,000,000.00 TL

ABOUT AYDEM SHARES

Public Offering Date April 29, 2021 Traded on Borsa İstanbul Stock Code AYDEM Traded Market BIST Star

INDICES TRADED ON

BIST Sustainability BIST All Shares-100 BIST Services BIST Corporate Governance BIST Electricity BIST Denizli BIST All Shares BIST Buyback BIST 500 BIST Stars

CONTACT US

Corporate Website https://www.aydemyenilenebilir.com.tr/en Investor Relations Website yatirimciiliskileri.aydemyenilenebilir.com.tr/en

HEADQUARTERS

Adalet Mahallesi Hasan Gönüllü Bulvarı No: 15/1 Merkezefendi Denizli - Türkiye Telephone +90 258 242 27 76 E-mail [email protected] / [email protected]

Message from the General Manager

Dear Stakeholders In the 100th anniversary of our Republic, we are proud to share with you the first integrated annual report of Aydem Renewables.

The year 2023 was marked by a devastating earthquake disaster on February 6. Therefore, I would like to commemorate once again with mercy and respect our citizens who lost their lives in the earthquake. The solidarity and rapid aid reflex we have shown as a nation in the face of the devastation has been our greatest consolation.

In 2023, as we have for nearly 30 years, we continued to contribute to our country's energy supply and sustainable future at full speed. In this way, while strengthening our leading position in our sector, we have also demonstrated a significant performance.

We continued to achieve our targets without any interruption.

As Turkey's largest and pioneering company in the field of renewable energy, we continued our contribution to our country's energy supply and future in 2023 and achieved a performance that satisfied our stakeholders.

We ended the year with assets of over TL 55 billion and EBITDA (Earnings Before Interests, Taxes, Depreciation and Amortization) of TL 5 billion 187 million.

In 2023, we managed our debt at levels in line with our strategy with our investments and Eurobond repurchases. We stood by our investors with share purchases during high index declines.

Our high corporate governance standards were registered.

With the 2023 assessment, our CMB Corporate Governance Principles Compliance Rating was 9.56 out of 10.) With the score we achieved, we reinforced our leading position in the sector as the company with the highest Corporate Governance Principles Compliance Rating among BIST Electricity Index companies as of the date of receipt, and continued to be included in the Borsa İstanbul Corporate Governance Index (XKURY).

Through our 160 MWm new investments, we differentiate ourselves in the sector and prepare for the future

While we positively differentiated ourselves in the sector with our unabated investments in renewable energy, we once again underlined our determination to carry our leading identity into the future.

With an installed capacity of 82.15 MWm, Uşak Hybrid SPP, the largest hybrid solar power plant in Turkey, was accepted by the Ministry on February 23, 2023. The Uşak Hybrid SPP, which we successfully commissioned, is an indicator of our innovation in the sector with both its installed capacity and technological infrastructure, contributing 8% to our total installed capacity. We anticipate that our power plant will contribute 164,000 MWh to our annual production.

As part of our capacity increase investments, we commissioned 11 turbines with an installed capacity of 6 MWm each at Uşak WPP and 2 wind turbines with an installed capacity of 6 MWm each at Söke WPP. These units, which are Turkey's largest wind turbines with the largest rotor diameter, not only increased our production capacity, but also reinforced our position in the sector in terms of technological and environmental sustainability.

As a company focusing on sustainable efficiency with new technologies, we achieved a high availability rate of 99.82% at all our power plants located in four different regions of Turkey.

We are registering our contribution to a sustainable future.

For the second time, we succeeded in being included in the 2023 Water Security and Climate Change Program Global A List of the international environmental reporting platform Carbon Disclosure Project (CDP). As Aydem Renewables, we succeeded in being the only company in Turkey to be included in the Global A List in both Climate Change and Water Security categories according to the 2023 CDP results.

Our science-based greenhouse gas emission reduction targets have been endorsed by the Science Based Targets initiative (SBTi). With this step, our company has taken its place

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among more than 5,000 companies and financial institutions around the world, demonstrating its commitment to leaving a livable world for future generations.

As Aydem Renewables, we are included in the BIST Sustainability Index, which is updated based on the sustainability performance of companies traded on Borsa İstanbul. At the same time, we have been included in the FTSE4Good Index, which is designed to measure the performance of companies that are successful in environmental, social and governance practices created by the Global Index Provider Financial Times Stock Exchange (FTSE) Russell. We continue to work in accordance with international standards by keeping our sensitivity to sustainability and the environment at the highest level.

In 2023, we continued our commitment to social development by providing 60.3 million TL support to social projects. Observing the positive results of our efforts in social development further strengthens our belief in a sustainable future.

The awards we have won, show the appreciation of our stakeholders.

In 2023, we were honoured with many national and international awards for our achievements

At Aydem Renewables, we take our steps for "Equal Life" by adopting the approach of justice and equality in every field. With our peopleoriented corporate culture, we have been included in the "Turkey's Best Employers List" in the category of "500-999" employees for the third time in a row and in the "Best Employers List" of the Aegean region for the second time in the survey conducted by the Great Place to Work® Institute. With our innovative

At Aydem Renewables, we adopt the approach of justice and equality in every field and take our steps for "Equal Life".

efforts in the sector, we were included in the Innovation By All, Production and Manufacturing List for the second time in 2023.

As a company that prioritizes occupational health and safety, in 2023, we were awarded the highest level of "Distinction" and the "Outstanding Achievement" award at the "2023 International Occupational Safety Awards" organized by the UK-based British Safety Council, one of the world's most respected institutions. This success, which we achieved in our first year of participation, is valuable in terms of demonstrating our performance in the field of occupational health and safety in the Turkish energy sector.

At The Stevie International Business Awards®, one of the prestigious awards of the global business world, we received the Bronze Stevie® Award in the Corporate Social Responsibility-Success Category with the "Purple Turbine Blades Project". Our 2022 sustainability and annual reports received a total of 12 awards from the LACP 2022 Vision Awards, including "Platinum", demonstrating the advanced point we have reached in transparency and sustainability reporting.

We won the Sustainable Production and Consumption Association's Low Carbon Hero Award for the fourth time with our Uşak Hybrid SPP and Uşak WPP Capacity Increase projects, which will contribute to the prevention of 300 thousand tons of carbon dioxide emissions annually.

About the future

Although global and local markets are going through a challenging period, we are hopeful for the future. We believe that our country will continue its rise in the global arena by utilizing its potential in the medium and long term. On the other hand, we anticipate that our sector will become an even more important player as decarbonization steps tighten within the scope of the targets set by the Paris Climate Agreement. With our new investments, we aim to approximately double our current capacity in the short term. Considering the most recent of these investments, we aim to exceed 1,700 MWm installed capacity by the end of 2025.

I would like to thank all our stakeholders, especially my colleagues who have contributed to the success of our company, for their contributions and support to our performance in 2023.

As Aydem Renewables, we will continue to produce in line with the goals of our country and work to leave a better world for future generations.

Yours sincerely,

Serdar MARANGOZ Vice Chairman of the Board of Directors and General Manager

WE REFLECT OUR PIONEERING AND INNOVATIVE APPROACH IN OUR INVESTMENTS

Sustainability Approach

We have a strong technical team capable of undertaking all construction works of our power plants and innovative projects. Our investment plans in areas such as energy efficiency projects, energy storage systems and digital management applications aim to contribute to a sustainable energy future with the power of nature and the support of modern technology. The combination of science, innovative approach and imagination allows us to create more effective and efficient solutions in energy production, strengthening our leadership in the sector.

WE GROW IN RENEWABLE ENERGY WITH THE PRINCIPLES OF RESPECT FOR NATURE AND RESPONSIBLE PRODUCTION

Purple Blade

With our integrated power plants based on wind, solar, water and other renewable energy sources, we generate environmentally friendly energy inspired by the power of nature and contribute to the energy supply of our country. We shape our projects not only in terms of energy generation, but also with the awareness of minimising environmental impacts and social responsibility.

WE AIM FOR A BETTER FUTURE WITH OUR VISION AND DETERMINATION

For Future Generations

Through education, health and environmental projects, we demonstrate our commitment to adding value to society and humanity beyond being just an energy producer. We aim to minimize our impact on the ecosystem with our projects integrated with naturefriendly technologies, and we bear the responsibility of leaving a livable world to future generations. With the principle of giving back to nature the energy we take from nature, we are taking firm steps towards our goal of becoming Turkey's leading renewable energy company. We continue to work hard for a sustainable and greener future.

As of 2023, the Company's installed HPPs account for 72% (852.1 MWm), WPPs for 20% (238.5 MWm), hybrid SPPs for 7% (82.2 MWm) and GPPs for 1% (6.9 MWm).

It is Turkey's largest private sector company in terms of installed capacity, generating energy from 100% renewable energy sources.

Turkey's largest 100% renewable energy private sector company

In 1995, Aydem Yenilenebilir Enerji Inc started its renewable energy generation journey under the umbrella of Aydem Energy and in 1997, Aydem Yenilenebilir Enerji Inc, which realized Turkey's first private hydroelectric power plant project in Denizli, is Turkey's largest private sector company in terms of installed capacity, generating energy from 100% renewable energy sources.

Consisting of 20 hydroelectric power plants (HPP), 3 wind power plants (WPP), 1 hybrid solar power plant (SPP) and 1 geothermal power plant (GPP), the Company contributes to Turkey's energy transformation by generating clean energy with its young portfolio.

Aydem Renewables in Brief

Aydem Renewables is institutionalizing its support for the sustainable development of our country and humanity.

As of 2023, the installed capacity of the Company consists of 72% (852.1 MWm) HPPs, 20% (238.5 MWm) WPPs, 7% (82.2 MWm) hybrid SPPs and 1% (6.9 MWm) GPPs.

Aydem Renewables' power plants operating in the Black Sea, Aegean, Mediterranean and Marmara regions implement environmentally friendly production models with Zero Waste Certificate, Renewable Energy (IREC) and Emission Reduction Certificates (VCS & GS).

Aydem Renewables' long-term average generation capacity (runrate) as of the end of 2023 is 3,444 GWh.

Growth supported by strong internal competencies

In addition to its 28 years of unique experience in renewable energy generation, Aydem Renewables has carried out the development and implementation of construction and electromechanical projects of all power plants, except for 2 power plants, with its competent human resources. The Company carries out most of the maintenance work at its power plants with expert maintenance and repair teams that utilize high technology and quality.

A corporate citizen supporting sustainable development

Aydem Renewables became a participant of the United Nations Global Compact (UNGC) in 2021, which it signed in 2020 to carry its support for the sustainable development of our country and humanity to a corporate level.

In 2022, the Company became a signatory to the Science Based Targets initiative's (SBTi) near-term emission reduction and Net-Zero commitments and the Women's Empowerment Principles (WEPs).

Emphasizing its commitment to clearly defined principles and values in line with the United Nations Global Compact and the United Nations Sustainable Development Goals, Aydem Renewables has been regularly presenting the social, economic and environmental outputs of its activities to its stakeholders since 2019 through sustainability reports prepared in accordance with the Global Reporting Initiative (GRI) Standards.

Aydem Renewables in Brief

Aydem Renewables (AYDEM) is traded on Borsa İstanbul Stars Market.

In April 2021, Aydem Renewables successfully realized the largest public offering of the last 3 years with its transaction size, and its shares are traded on Borsa İstanbul Stars Market under the symbol "AYDEM".

Aydem Renewables has reached the highest level of excellence and transparency in corporate governance.

In April 2022, SAHA Kurumsal Yönetim ve Kredi Derecelendirme Hizmetleri Inc. rated the Company's level of compliance with the "Corporate Governance Principles" published by the Capital Markets Board of Turkey (CMB) for the first time, and the Company achieved a score of 9.48 out of 10 points, and was included in the Borsa İstanbul Corporate Governance Index (XKURY) following this result. In 2023,

the Company's compliance with the CMB Corporate Governance Principles was evaluated at 9.56 out of 10. The score we received in 2023 in terms of Corporate Governance Rating Score is the highest score in the Electricity Index as of the date of receipt. We consider this development as indicators of Aydem Renewables' excellence in corporate governance and the high level it has reached in the field of transparency.

100% GREEN ENERGY

78% OF GENERATION SUBJECT TO FIT (YEKDEM)

GEOGRAPHICAL DIVERSITY

To the future with a business model that creates sustainable value

Aydem Renewables' business model is based 100% on green energy generation, 78% of which is subject to FIT (YEKDEM), and the advantage of geographical diversity. While supporting this model with new and modern facilities, the company is moving forward with determination to the future with investments that provide portfolio diversity.

Aydem Holding Group Companies

Apart from renewable energy generation, Aydem Energy plays an important role in meeting Turkey's electricity demand with its other companies and activities in the sector.

RENEWABLE ENERGY PRODUCTION

Aydem Renewables

Establishment: 1995

Fully Renewable Energy Generation Portfolio: 25 (20 Hydroelectric Power Plants, 3 Wind Power Plants, 1 Hybrid Solar Power Plant, 1 Geothermal Power Plant)

Total Installed Power: 1,179.63 MWm

ELECTRICITY DISTRIBUTION

ADM Electricity Distribution (ADM Elektrik Dağıtım) Establishment:: 2008 Distribution Region: Aydın, Denizli, Muğla Turkey's First Private Electricity Distribution Licensee 3.3 million Population 2.3 million Consumers

GDZ Electricity Distribution (GDZ Elektrik Dağıtım) Establishment: 2013 Distribution Region: İzmir, Manisa 6 million Population 3.8 million Consumers

ELECTRICITY RETAIL SALES

Aydem Retail (Aydem Perakende) Establishment: 2008 Turkey's First Privatized Retail Company Electricity Supply Service in 81 Provinces of Turkey I-REC Certified Green Energy Sales More than 2 million locations

Energy for More than 8 million People

Gediz Retail (Gediz Perakende) Establishment: 2013 Türkiye'nin 81 İlinde Elektrik Tedarik Hizmeti I-REC Sertifikalı Yeşil Enerji Satışı

More than 3 million locations Energy for more than 12 million People

OTHER

Parla Solar Establishment: 2014

Solar Panel Productioni Production Area 33.000 m² Production Capacity: 150 MWm

GDZ Enerji Establishment: 2013

Increasing operational efficiency and shaping service sector dynamics

GRI 2-6

Elsan Electrical Equipment (Elsan Elektrik Gereçleri) Establishment: 1980

Electrical Equipment Production and Sales

Production Capacity: 30 thousand tons/year 65% of Sales Export

Tümaş

Establishment: 1986 Turkey's first and largest natural stone producer

Hundreds of projects in Turkey and abroad

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Turkey's first and pioneering integrated energy company

Aydem Holding Group Companies

A community of more than 12,000 employees energizing and empowering the lives of more than 20 million people.

It operates in the fields of electricity generation, distribution and retail with its game-changing approach and determination to break new ground in the energy sector in Turkey. With more than 12 thousand employees and a socially and environmentally sensitive approach, as in its more than 40 years of deeprooted history, it always works by putting people at the center. It transforms energy into an innovative power to make today and the future brighter.

As Turkey's leading energy company, it focuses on renewable energy while working for Turkey's sustainable future, generating energy from hydroelectric, wind and geothermal sources. With many firsts, it leaves its mark on the future and breaks the mold in the energy sector.

Turkey's first and pioneering INTEGRATED ENERGY COMPANY

Turkey's largest company with a 100% renewable energy portfolio AYDEM RENEWABLES

Turkey's top three largest HAS ONE OF THE RENEWABLE ENERGY PORTFOLIO

Turkey's First Private Sector Hydroelectric Power Plant BEREKET HYDROELECTRIC POWER PLANT

TURKEY'S FIRST DOMESTIC SOLAR CELL PRODUCTION PARLA SOLAR

Turkey's first private sector electricity distribution company ADM ELECTRICITY DISTRIBUTION

Turkey's first private sector electricity retail company AYDEM ELECTRICITY RETAIL

Turkey's first and only one-time collaboration with 14 group companies "A GREAT WORKPLACE" CERTIFICATE

Turkey's first and only one with 9 group companies ON THE "BEST EMPLOYERS" LIST

Turkey's first and largest hybrid solar power plant UŞAK HYBRID SOLAR POWER PLANT

32%

22%

Operation Map

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Aydem Renewables realizes energy production in a wide geography in Turkey.

Total Planned Investments Regional Distribution (2023-2026)

Vision, Mission, Strategy and Values

We generate energy for life with an approach that prioritizes employee satisfaction.

VISION - MISSION - STRATEGY

With our sustainability culture, which we have developed by evaluating the social and economic impact areas, the expectations of all our stakeholders and our corporate strategy, our vision of "Clean energy for a sustainable future" and our mission of "Being Turkey's leading renewable energy generator", we work by considering the sustainability of natural resources, the environment and the needs of future generations. With our renewable energy-focused approach, we always aim to move our Company forward.

At this point, we strive to create the highest value for all our internal and external stakeholders by adding new ones to our achievements. With our innovative investments in renewable energy, we will continue to be Turkey's largest private company generating energy from 100% renewable sources and lead our

sector. We support the sustainable development of our country by adhering to sustainability, innovation and people-orientation, which are among our corporate focuses, and we continue our efforts with determination to add value to the future.

While producing the "clean energy" of today and the future with sustainability, we continue to work to respect the environment and people, create and share long-term value for our stakeholders and society, strengthen our team, and produce the clean energy of the future with our strong and successful business model.

Supported by our innovation, even in the most unpredictable times, we have introduced Turkey to many "firsts" with our courage, agility, willpower and understanding of events from different perspectives.

Being innovative is our main point of departure while seeking the better for today and the future. With our corporate culture that shapes the energy market with new approaches, we act with an understanding that transforms people's interest in energy with technological innovations and makes energy more effective in all areas of life thanks to digitalization.

Our business is to serve people within the framework of our humanoriented approach.

This understanding is at the center of our work as we work to make human life better. We choose to develop by adding value to people. We prioritize and listen to the needs of all our stakeholders. While positioning customer and stakeholder relations at the focal point of our activities, we also generate energy for life with a perspective that works with the highest standards in workplace safety, fulfills all the requirements of being an employer brand, and cares about employee loyalty and satisfaction.

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OUR VALUES

Sensitivity

While carrying our organization into the future by doing our job in the best way possible; we fulfill our responsibilities towards individuals, society, our country and the environment. We ensure that our work is carried out within the framework of our business ethics while performing our work in the targeted time and quality. We adopt a transparent and accountable working style in accordance with procedures and rules. We speak up if we encounter an unethical or unfair practice. We take into account how our behavior affects others.

Dynamism

We follow the needs of our colleagues and stakeholders that arise under changing conditions and make the necessary improvements in the working environment, our business conduct system, products and services. We pioneer the electricity sector with the steps we take and guide development and change in the sector. With curiosity in our soul, we try new ways to fulfill products, processes and services more efficiently, quickly and error-free.

Touching Life

"People" are at the center of every work we do, every step we take. Our continuous improvement, curiosity, inquisitive spirit and the expertise we have gained over the years enable us to develop solutions that add energy and value to every moment of life. We allow our colleagues to express their different ideas, value their social needs and celebrate their successes together. We work to improve the quality of life of our stakeholders by accurately analyzing their needs and expectations.

We follow the needs of our colleagues and stakeholders that arise under changing conditions.

Capital, Shareholding Structure and Subsidiaries

	Ownership (%)
Subsidiaries	December 31, 2023 December 31, 2022		Main Activities
Ey-Tur Enerji Elektrik Generation and Trade Inc ("Ey-tur") / HPP	100	100	The generation of electricity using a hydro energy source.
Başat Elektrik Generation and Trade Inc ("Başat") / HPP	100	100	The generation of electricity using a hydro energy source.
Sarı Retail Energy Sales and Trade Inc ("Sarı Retail")	100	100	Electricity trade
Akköprü Renewable Energy Production Inc	100	100	The generation of electricity using a hydro energy source.

Capital and Shareholding Structure	December 31, 2023		December 31, 2022
Shareholders	TL	%	TL	%
Aydem Energy Investments Inc	574,975,680	81.55683	574,975,680	81.55683
Publicly Traded*	130,000,000	18.43972	130,000,000	18.43972
Other**	24,320	0.00345	24,320	0.00345
Total	705,000,000	100	705,000,000	100

*Within a period of 30 days following the commencement of trading of the Company shares on BIST, price stabilising transactions were carried out on the Company shares, In this context, 18,679,595 shares were purchased by Aydem Energy Investments Inc),

**Kocaer Demir San, Trade (0.00164%), Mopak Kağıt Karton San, Trade Inc, (0.00164%), Acıselsan Acıpayam Sel, San, Trade Inc, (0.00010%) shares,

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Milestones

1995

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Aydem Renewables was established in Denizli and started its activities.

1997

Aydem Renewables started energy generation by establishing Bereket 1, Turkey's first private hydroelectric power plant, on Çürüksu, a tributary of the Büyük Menderes River in Denizli.

1998

Bereket II Hydroelectric Power Plant established in Denizli started energy generation.

1999

The first section of the Dalaman Hydroelectric Power Plant, built on the Dalaman Stream in Muğla, started energy generation.

2004

Feslek Hydroelectric Power Plant established on the Büyük Menderes River in Aydın started energy generation.

2005

All of the Dalaman I-V Hydroelectric Power Plants built on the Dalaman Stream in Muğla started energy generation.

2006

Gökyar Hydroelectric Power Plant, built on the Dalaman Stream in Muğla, started energy generation.

Mentaş Hydroelectric Power Plant, built on the Seyhan River in Adana, started energy generation.

2008

Kızıldere Geothermal Power Plant established in Denizli-Sarayköy started energy generation.

2009

Koyulhisar Hydroelectric Power Plant established on the Kelkit River in Sivas started energy generation.

2012

Çırakdamı Hydroelectric Power Plant established on the Aksu River in Giresun started energy generation.

Kumkısık Biogas Energy Plant established in Denizli started energy generation.

2013

Toros Hydroelectric Power Plant established in Adana started energy generation.

2014

Dereli Hydroelectric Power Plant established in Giresun started energy generation.

Uşak Wind Power Plant established in Uşak-Banaz started energy generation.

Düzce Aksu Hydroelectric Power Plant established in Düzce started energy generation.

2015

Söke Wind Power Plant established in Aydın started generation.

Göktaş II Hydroelectric Power Plant established in Adana started energy generation.

2016

Yalova Wind Power Plant established in Yalova-Armutlu started energy generation.

Göktaş I Hydroelectric Power Plant established in Adana started energy generation.

2017

Adıgüzel Hydroelectric Power Plant in Denizli joined the portfolio through privatization.

Kemer Hydroelectric Power Plant in Aydın joined the portfolio through privatization.

2018

Akıncı Hydroelectric Power Plant established in Tokat started energy generation.

2020

The Company's first sustainability report was published and the report received the "Silver Award" at the LACP Awards organized by the League of American Communications Professionals.

Aydem Renewables became a signatory of the UN Global Compact.

Aydem Renewables was recognized as the leader of the Turkish electricity and gas services sector by Vigeo Eiris/Moody's, one of the world's most important independent rating companies in the field of Environment and Governance (ESG).

The official opening ceremony of the Akıncı Hydroelectric Power Plant in Tokat was held.

Aydem Renewables received the First Prize in the Syndicated Loan Transactions of the Year category at the Bonds, Loans & Sukuk Turkey Awards 2020.

Aydem Renewables was selected as the "Company with the Highest Profit Before Tax" in the Anatolia 500 Survey conducted annually by Ekonomist magazine.

2021

Aydem Renewables ranked 4th among 100 companies in the Great Place to Work Institute® Turkey's Best Employers survey.

With a transaction size of TL 1.3 billion, the largest public offering of the last 3 years was realized.

USD 750 million green bond issuance was successfully realized.

Aydem Renewables was ranked first in Turkey in the electricity and gas services sector for the second consecutive year as a result of the evaluation conducted by Moody's/ Vigeo Eiris within the scope of ESG, and became the sector leader in the "Emerging Markets" world ranking.

Aydem Renewables became a participant of the United Nations Global Compact (UNGC), which it signed in 2020.

Aydem Renewables increased its rating to "B Management Level" as a result of both CDP Climate Change and Water Security surveys. In the CDP Supplier Engagement Rating (SER), Aydem Renewables received the highest rating in the power generation sector in Turkey in 2021 by raising its rating to "A- Leadership Level".

Following the "EIA Positive" decision, the current license power of Uşak WPP reached 114.30 MWm.

Aydem Renewables became a signatory of the Science Based Targets initiative (SBTi).

2022

Aydem Renewables became a signatory of the Science Based Targets initiative (SBTi).

Within the scope of the Carbon Disclosure Project, Aydem Renewables achieved the highest score of "A Leadership Level" in the Water Security and Climate Change Survey and became the only company in Turkey to be included in the A List Report, which includes global leaders in 2022, with its success in these two categories. In the CDP Supplier Engagement Rating (SER), it received the "A Leadership Level".

Aydem Renewables , whose first Corporate Governance Rating Score was determined as 9.48, was included in the Borsa İstanbul Corporate Governance Index (XKURY).

Aydem Renewables joined the signatories of the United Nations Women's Empowerment Principles (WEPs).

Aydem Renewables prepared its third Sustainability Report with GRI approval.

Auxiliary Source SPP investment approvals were obtained for Uşak WPP, Yalova WPP and Söke WPP. Installation works of Uşak WPP Hybrid SPP 82.15 MWm project have been completed. As of 23.02.2023, Ministry Acceptance was realized.

Kumkısık LFG Power Plant, whose generation license expired, was transferred to Denizli Metropolitan Municipality.

Aydem Renewables' first Annual Report received 5 awards at the LACP 2021 Vision Awards.

Aydem Renewables was included in the Great Place to Work® Turkey and Aegean Best Employers List as well as the Manufacturing and Innovation 2022 Best Employers List.

Aydem Renewables received the First Prize in the Public Offering Transactions of the Year category and the Second Prize in the Corporate Bond Issuance of the Year category at the Bonds, Loans & Sukuk Turkey Awards 2022.

Sustainability Report received 2 awards from LACP 2021/22 Vision Awards. It ranked 55th in the Top 100 Reports list worldwide.

Milestones

Aydem Renewables has taken its place among 5,000+ companies and financial institutions in the world that have set science-based goals.

2023

Achieved the highest score of "A Leadership Level" in the Water Security and Climate Change Programs within the scope of the Carbon Disclosure Project for the second time

Aydem Renewables is the only energy company in Turkey to be included in the A List Report, which includes global leaders.

Aydem Renewables has set greenhouse gas emission reduction targets in accordance with the criteria and recommendations set by SBTi (Science Based Targets initiative) and these targets have been approved by SBTi. Aydem Renewables has taken its place among 5,000+ companies and financial institutions in the world that have set science-based targets.

Aydem Renewables commissioned Turkey's largest hybrid SPP in Uşak. It is also the first solar power plant in the company's portfolio.

Aydem Renewables doubled the installed capacity of Uşak WPP to 127.5 MWm with new turbines with 11 purple blades, each with a power of 6 MWm.

Aydem Renewables' WPP installed capacity in Söke reached 57 MWm with two new turbines of 6 MWm each.

Aydem Renewables , which considers sustainability in all its investments and activities, was included in the BIST Sustainability Index with its successful performance in this field.

Aydem Renewables , whose Corporate Governance Rating Score was determined as 9.56, is among the companies included in the Electricity Index as of the date of the Corporate Governance Rating. The highest degree of compliance with the Principles and continued to be included in the Borsa İstanbul Corporate Governance Index (XKURY).

The 2023 Stevie International Business Awards® In the Achievement in Corporate Social Responsibility Category, Aydem Renewables received the "Bronze Stevie®" award for its "Purple Turbine Blades Project".

"Distinction", the highest level of the British Safety Council International Occupational Safety Award, which was attended for the first time, with 51 points. The only company in the Turkish energy sector to receive the "Distinction" award.

Aydem Renewables prepared its fourth sustainability report, the 2022 Sustainability Report, as GRI approved.

Aydem Renewables was included in the Great Place to Work® Turkey and Aegean Best Employers List as well as the Manufacturing and Innovation 2022 Best Employers List.

Sustainability Report received 6 Awards, including Platinum, from LACP Vision Awards. It ranked 71st in the Top 100 Reports list worldwide.

Annual Report received 6 awards, including Platinum, at the LACP Vision Awards. It ranked 79th in the Top 100 Reports list worldwide.

Uşak Hybrid SPP & Uşak WPP Capacity Increase projects received the Sustainable Production and Consumption Association (SÜT-D) Low Carbon Hero award for the fourth time with the emission values they will prevent.

Highlights in 2023

Aydem Renewables commissioned the 82.15 MWm Uşak Hybrid SPP.

Turkey's largest hybrid SPP is commissioned in Uşak.

Aydem Renewables commissioned Uşak Hybrid SPP, Turkey's largest hybrid solar power plant (SPP) with a capacity of 82.15 MWm. Usak Hybrid SPP, which uses 155 thousand panels with double surface, 20% more efficient than standard panels, will provide maximum performance by generating energy even from the light reflected from the snow on the ground, especially in winter months. Meeting the annual energy needs of 54,700 households, Uşak Hybrid SPP will prevent 104,121 tCO² e carbon dioxide emissions annually.

WPP installed capacity in Uşak increased to 127.5 MWm with new purple blades.

Aydem Renewables doubled the capacity of its wind power plant (WPP) in Uşak's Banaz district with 11 new turbines. With this investment, which is the largest wind turbines to generate energy in Turkey, the installed capacity of the plant reached 127.5 MWm. The wind blades, painted purple for the sustainability of the bird population, started to contribute to Turkey's clean energy supply.

WPP Power in Söke reached 57 MWm with two new turbines.

Aydem Renewables , Turkey's largest company generating energy exclusively from renewable resources, has commissioned two new turbines, each with an installed capacity of 6 MWm, to increase the wind capacity of Söke WPP with the approval of the Ministry and started energy production. The installation of our two new turbines with a total power of 12 MWm, with a blade length and rotor diameter of 165 meters, was completed in a short period of three months.

Aydem Renewables in BIST Sustainability Index

Aydem Renewables started to be traded in the BIST Sustainability Index, which evaluates the sustainability performance of companies with an international methodology. Aydem Renewables, which is a participant of the United Nations Global Compact (UNGC) and a signatory of the Science-Based Targets initiative (SBTi) and considers sustainability in all its investments and activities, was included in the Index with its successful performance in this field.

As of April 7, 2023, the company with the highest degree of compliance with corporate governance principles among BIST Electricity Index companies

Aydem Renewables' Capital Markets Board (CMB) Corporate Governance Principles Compliance Rating was announced as 9.56 out of 10 full points. In the report prepared by SAHA Corporate Governance and Credit Rating Services (SAHA Rating), the Company's Corporate Governance Compliance Rating Score increased from 9.48 in 2022 to 9.56. With this score, Aydem Renewables became the company with the highest degree of compliance with Corporate Governance Principles among the companies in the BIST Electricity index as of April 7, 2023 and continued to be included in the Borsa İstanbul Corporate Governance Index (XKURY).

Highlights in 2023

Aydem Renewables has taken its place among 5000+ companies and financial institutions in the world that have set science-based goals.

Aydem Renewables took a pioneering step in the Turkish energy sector with the approval of the Science Based Targets initiative (SBTi). The Company, whose Scope 1 and Scope 2 emissions are classified in line with the 1.5°C trajectory in line with the Near-Term Target commitment, also committed to reduce absolute Scope 1 and Scope 2 greenhouse gas emissions by 51% and absolute Scope 3 greenhouse gas emissions from capital goods by 30% by 2032 compared to the base year of 2022.

Aydem Renewables, while taking its place in "The Business Ambition for 1.5°C» campaign led by SBTi and in partnership with UNGC and We Mean Business Coalition, announced that it will also participate in the "UNFCCC Race to Zero" campaign launched by COP26 Climate Action Leaders, which aims to create the largest coalition towards the goal of net zero carbon by 2050.

In the Carbon Disclosure Project (CDP) Climate Change and Water Security Programs

Aydem Renewables' rating was confirmed as "A Leadership Level" as a result of the CDP - Carbon Disclosure Project (Carbon Disclosure Project) Climate Change Reporting in 2022. We became the only company in Turkey to receive "A Leadership Level" in both of these categories in 2022 reporting.

CDP Global Leaders Award to Aydem Renewables

Aydem Renewables continues to be on the Global A List by achieving "A Leadership Level" in both Climate Change and Water

Security Reporting. In 2023, Aydem Renewables is the only organization in Turkey among all sectors to achieve "A Leadership Level" in both Climate Change Reporting and Water Security Reporting for two consecutive years and to be on the Global Leaders List (A List). It is also the only organization in the energy sector to achieve "A Leadership Level" in both categories in 2023. It is planned to present the 2023 awards to CDP Leaders during the CDP Turkey Conference and Award Ceremony to be held on May 21, 2024.

Aydem Renewables receives occupational safety award from the UK

Aydem Renewables received the "Distinction" rating, the highest level with 51 points, at the 2023 International Occupational Safety Awards organized by the British Safety Council for the 65th time this year. In the organization where more than 250 companies from Turkey participated and 29 companies were entitled to receive awards, the Company became the only company in Turkey to receive the "Outstanding Achievement" award in the energy sector with the highest "Distinction" rating.

Aydem Renewables is on the "Great Place to Work®" Innovation by All™ List in 2023!

Aydem Renewables has succeeded in being included in the Innovation by All™ List by the Great Place to Work® Institute in the category of companies with more than 500 employees. With this prestigious award, Great Place to Work® recognizes the best employers that encourage employees to participate in innovation and contribute to the company every year.

12 Awards to Aydem Renewables from LACP 2022 Vision Awards

Aydem Renewables was awarded for both its annual and sustainability reports at the LACP 2022 Vision Awards. The company won a total of 12 awards in the "Energy-Equipment and Services" category, including the highest award, the "Platinum Award", for its annual and sustainability reports published in 2022.

Aydem Renewables launched a research project in Söke, the first of its kind in Turkey, to determine the relationship between WPPs and the efficiency of beehives.

Aydem Renewables became a carbon hero for the fourth time

Aydem Renewables was deemed worthy of the Low Carbon Hero award at the 8th Carbon Summit organized by the Sustainable Production and Consumption Association with the support of the Republic of Turkey Ministry of Environment, Urbanization and Climate and İstanbul Technical University (ITU) with the emission value to be prevented by Uşak Hybrid SPP and Uşak WPP Capacity Increase projects.

To heal wounds in solidarity

February 6, 2023 was one of the biggest earthquake disasters ever experienced in the history of Turkey. Believing in the power of solidarity, Aydem Renewables, together with Aydem Energy group companies, contributed to the efforts to support the earthquake zone in coordination with AFAD and Red Crescent from the first day. Aydem team of 160 people, including 44 search and rescue personnel from across the group companies, supported the efforts in the earthquake zone. They worked to provide energy to the region and to distribute the aid materials delivered. In Hatay, Aydem and the Red Crescent provided food support to 2,000 citizens every day.

Kızılcaören SPP illuminates the villages and streets of Uşak with the sun

Aydem Renewables, on behalf of Uşak Governorship and Provincial Special Provincial Administration, completed and delivered the SPP plant, which it undertook from project design to installation in Kızılcaören Village of Banaz district, to the Administration in a short period of 4 months. The SPP plant, which consists of 3,065 panels with a total installed power of 1.84 MWe on an area of approximately 28 thousand square meters in Kızılcaören Village, aims to generate 3 thousand MWh of energy annually. The SPP will meet the energy consumption of a total of 546 units, including 245 villages, and the organizations within its structure.

33 tons of triticale seed support for 100 farmers on the 100th anniversary of the Republic

Aydem Renewables provided 33 tons of triticale seed support to 100 farmers in the 100th anniversary of the Republic with a social responsibility project to popularize triticale agriculture and support farmers in Uşak.

Aydem Renewables acts with the motto "Always further for society" and realizes social responsibility projects for the local people it comes into contact with in the power plant regions. Triticale was planted on 170 decares of land in Uşak, where Turkey's largest hybrid SPP and purple wind turbines are located. The plant was harvested in the summer and 33 tons of seeds were obtained. A similar project is planned to be realized next year with the production of "Hungarian vetch", another fodder plant.

The first beekeeping research project in Turkey within the scope of biodiversity started in Söke

Contributing to Turkey's sustainability with its biodiversity projects, Aydem Renewables launched a research project in Söke, the first of its kind in Turkey, to determine the relationship between WPPs and the productivity of beehives. With the "Beekeeping Activities Monitoring and Support Project", the Company also provided theoretical and practical training to beekeepers from Söke in Aydın in cooperation with Düzce University Beekeeping Research Development and Application Center (DAGEM).

Key Indicators

Net Generation by Power Plant (GWh)
Power Plant Name	2020	2020	2020	2020	2021	2021	2021	2021
	Realized
	Quarter 1 Total	2. Quarter Total	3. Quarter Total	4. Quarter Total	Quarter 1 Total	2. Quarter Total	3. Quarter Total	4. Quarter Total
Bereket I-II HPP	5	6	8	10	4	5	6	8
Feslek HPP	5	6	7	9	4	5	7	8
Dalaman HPP	23	50	72	75	15	45	63	66
Gökyar HPP	9	14	16	20	9	12	14	19
Mentaş HPP	39	70	87	101	27	48	66	77
Koyulhisar HPP	3	58	132	177	12	47	95	101
Toros HPP	83	188	217	231	27	74	81	94
Aksu HPP	40	79	81	82	17	59	73	96
Kemer HPP	0	19	57	57	0	14	35	35
Adıgüzel HPP	0	25	29	29	0	5	4	4
Çırakdamı HPP	32	92	96	100	12	56	62	78
Dereli HPP	27	93	97	99	9	54	61	76
Söke WPP	48	81	124	157	47	90	136	177
Uşak WPP	49	72	102	131	46	79	111	154
Yalova WPP	42	70	115	150	45	70	108	152
Kızıldere GPP	0	0	0	0	0	0	0	0
Akıncı HPP	89	180	288	362	29	92	165	177
Göktaş 1 HPP	106	248	316	363	67	128	162	201
Göktaş 2 HPP	142	327	417	417	90	172	218	270
Total	742	1,680	2,261	2,636	457	1,053	1,467	1,793

Condensed Consolidated Statements (IFRS)

Summary Statement of Financial Position (TL million)

	31 Aralık 2023	31 Aralık 2022
Current Assets	4,738	5,040
Fixed Assets	50,868	54,749
Total Assets	55,607	59,788
Short Term Liabilities	2,087	2,633
Long Term Liabilities	24,899	27,833
Total Liabilities	26,986	30,466
Equity	28,621	29,322
Total Liabilities and Shareholders' Equity	55,607	59,788

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2022	2022	2022	2022	2023	2023	2023	2023
Realized
Quarter 1 Total	2. Quarter Total	3. Quarter Total	4. Quarter Total	Quarter 1 Total	2. Quarter Total	3. Quarter Total	4. Quarter Total
4	6	6	9	4	6	7	10
5	5	5	6	3	5	5	6
31	60	83	86	2	27	54	61
12	18	20	25	6	12	14	20
43	60	78	90	19	45	59	78
38	76	143	197	27	97	171	244
75	174	196	207	19	84	99	114
30	82	90	103	33	74	86	112
10	35	92	92	0	4	37	37
0	0	0	0	0	0	0	0
18	90	99	113	26	112	124	132
15	92	100	111	27	120	131	138
50	91	137	176	41	77	114	152
38	69	110	156	43	95	187	268
37	65	103	143	33	55	97	140
0	0	0	0	0	0	0	0
68	139	238	317	50	193	308	420
78	168	223	272	40	102	148	193
109	229	303	368	53	138	200	260
661	1,457	2,024	2,469	421	1,241	1,837	2,380

Summary Statement of Profit or Loss (TL Million)

	December 31, 2023	December 31, 2023
Revenue	6,359	7,566
Cost of Sales	(3,611)	(3,377)
Gross Profit	2,748	4,189
General Administrative Expenses	(632)	(349)
Other Operating Income, Net	941	876
Operating Profit	3,057	4,716
Depreciation and Amortization Expenses	2,130	2,148
EBITDA	5,187	6,864
EBITDA Margin (%)	82	91
Expenses from Investing Activities, Net	(3,358)	(4,942)
Finance Expenses, Net	(12,150)	(2,946)
Monetary Gain/(Loss)	14,307	13,271
Profit/(Loss) Before Tax from Continuing Operations	1,857	10,099
Tax (Expense)/Income	(3,137)	(5,126)
Net Profit/(Loss) for the Period	(1,280)	4,973

Note: Inflation accounting has been applied to the presented data for 2022 and 2023 in accordance with TAS 29.

Key Indicators

Average Sales Price of Power Plants (USD/MWh)*

Income

EBITDA ve EBITDA Margin (TL million/%)

Gross Profit and Gross Profit Margin (TL million/%)

Operating Profit and Gross Profit Margin (TL million/%)

Cash Conversion (%)

Cash and Cash Equivalents

(TL million)

Net Financial Liabilities/EBITDA (x)

	2023	2022
Revenue (TL million)	6,369	7,566
EBITDA (TL million)	5,187	6,864
EBITDA Margin (%)	82	91
Cash Conversion (%)	99	100
Gross Profit (TL million)	2,748	4,189
Gross Profit Margin (%)	43	55
Operating Profit (TL million)	3,057	4,716
Operating Profit Margin (%)	48	62
Cash and Cash Equivalents (TL million)	2,020	2,717
Net Profit/(Loss) for the Period (TL million)	(1,280)	4,973
Net Financial Liabilities/EBITDA	3.5x	2.8x
Profit/(Loss) per Share (TL)	7.1	(1.8)

Note: Inflation accounting has been applied to the presented data for 2022 and 2023 in accordance with TAS 29.

Key Indicators

Capacity Utilisation Rate HPP (%) Capacity Utilisation Rate WPP (%)

Awards and Achievements

Aydem Renewables won domestic and international awards in 2023 and its activities were appreciated by its stakeholders.

Science-Based Targets initiative (SBTi)'s Net-Zero Determination of Commitment

As a signatory of SBTi (Science Based Targets initiative), last year, in line with our Near-Term Goal commitment, our scope 1 and 2 emissions were classified in line with the 1.5°C trajectory. We are among the more than 5,000 companies in the world that have set Science Based Targets.

LACP Vision Awards

6 Awards for 2022 Annual Report

Platinum Award in the Energy-Equipment Services category, 79th in the LACP 2022 Vision Awards Top 100 World Ranking, 7th in the Europe, Middle East and Africa (EMEA) Region Top 80, Gold Award for "Best Message to Shareholders" with the Annual Report in the EMEA Region Achievement Award, Technical Achievement Award, Turkey Top 20 list.

6 Awards for 2022 Sustainability Report

Platinum Award in the Energy-Equipment Services category, 71st in the LACP 2022 Vision Awards Top 100 World Ranking, 6th in the EMEA (Europe, Middle East and Africa) Region Top 80, "Best Developed Report" Gold Award, Technical Achievement Award, Turkey Top 20 list.

The 2023 Stevie International Business Awards®

The 2023 Stevie International Business Awards® "Purple Turbine Blades Project" "Bronze Stevie®" award in the Achievement Category of Corporate Social Responsibility.

CDP Climate Change Reporting

Became one of the global climate leaders by achieving "A Leadership" score in Climate Change categories for the second consecutive year. (According to the 2023 CDP results, it is the only company in Turkey to be included in the Global A List in both Climate Change and Water Security categories for 2 consecutive years).

CDP Water Security Reporting

Water Security became one of the global climate leaders by scoring "A Leadership" for the second time in a row in the Climate Change categories. (According to the 2023 CDP results, it was the only company in Turkey to make the Global A List in both Climate Change and Water Security categories).

—

British Safety Council International Safety Award

Great Place to Work® Institute Turkey's Best Employers Survey

Success in being included in the Turkey's and Aegean's Best Employers Lists, as well as the Best Employers List for Production and Manufacturing.

Participation in the BIST Sustainability Index

Aydem Renewables, which considers sustainability in all its investments and activities, was included in the BIST Sustainability Index with its successful performance in this field.

CMB Corporate Governance Principles Compliance Note

As of 7 April 2023, the Company has the highest degree of compliance with Corporate Governance Principles among the BIST Electricity Index companies with 9.56 points (out of 10 full points) and continued to be included in the Borsa İstanbul Corporate Governance Index (XKURY).

Awards and Achievements

Turkey's Largest Hybrid SPP Uşak Hybrid SPP, Turkey's largest hybrid solar power plant, received ministerial acceptance on February 23, 2023 and started its production activities. With an installed capacity of 82.15 MWm, Uşak Hybrid SPP is also the first solar power plant of our company.

Turkey's Largest Purple Blade Turbines

Turkey's largest purple bladed wind turbines with a rotor diameter of 165 meters were installed and commissioned at Uşak Wind Power Plant.

Sustainable Production and Consumption Association (SÜT-D) "Low Carbon Hero" Award

Low Carbon Hero award for the fourth time with the emission values to be prevented by Uşak Hybrid SPP and Uşak WPP Capacity Increase projects.

Board of Directors

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İdris KÜPELİ Chairman of the Board of Directors

After double majoring in Finance and Business Administration at Florida International University, USA, he completed his master's program (MBA) in the same departments at Miami University, USA. He started his career at Laurel Oak Financial Services. Between 2005 and 2009, he worked as a Director at Morgan Stanley in the USA and then continued as a Project Director at NextEra Energy in Miami, USA between 2009 and 2012. In 2012, he returned to Turkey and worked as Project Finance and Trade Director at TANAP, Trans Anatolian Natural Gas Pipeline Project, one of the most important energy projects of Turkey and Azerbaijan, until 2014. Subsequently, he served as Group Chief Investment Officer (CIO) of SOCAR Turkey. As of 2018, Mr. Küpeli is the Chief Executive Officer (CEO) of Aydem Energy and Chairman of the Board of Directors of Aydem Renewables.

Serdar MARANGOZ Vice Chairman of the Board of Directors and General Manager

Serdar Marangoz graduated from METU Electrical and Electronics Engineering Department and started his career at Siemens AG. Since 2009, Mr. Marangoz has assumed senior management positions in different companies under the roof of Aydem Energy, and continued to work as Aydem Electricity Market and Regulation Manager, Executive Board Member at ADM and GDZ Electricity Distribution companies, respectively. In 2019, he was appointed as Chief Commercial Officer (CCO) of Aydem Energy and Board Member of Aydem Renewables. In 2019, he was appointed as a member of the Board of Directors of Aydem Retail and Gediz Retail companies, as well as general manager since 2021. Until 2023, he served as the general manager of retail group companies. As of October 25, 2023, Marangoz has been serving as the General Manager of Aydem Renewables.

Asya Vuslat SALDANLI Board Member

Asya Vuslat Saldanlı, who completed her high school education in Denizli and studied English for a year at Mentora College in Washington, DC, graduated from George Mason University, Department of Systems Engineering. Saldanlı, who focused on operations research and renewable energy in school, did her graduation project on the development and optimization of a transportation network consisting of flying vehicles. After graduating in 2020, Saldanlı returned to Turkey and joined Aydem Energy.

Asya Vuslat Saldanlı, who has been actively involved in various projects in Aydem Energy's subsidiaries, started to serve as a Board Member of the company in December 2021.

Galip AYKÖSE Board Member

In 1998, Galip Ayköse completed his undergraduate studies at METU Business Administration Department and started his career in the audit department of Arthur Andersen and worked at different levels within Ernst & Young until 2012. Afterwards, he assumed managerial positions in the finance teams of Petline, Karadeniz Holding and Çalık Enerji in the energy sector, and in May 2019, he started to work as the Chief Financial Officer of Aydem Holding. In addition to this position, Ayköse also served as a member of the Board of Directors in Aydem Holding companies and was reappointed as a member of the Aydem Renewables Board of Directors in September 2023.

**Ersin AKYÜZ* Independent Board Member**

Ersin Akyüz holds a BA and MA in Economics from the London School of Economics and an MBA in Finance from the University of Chicago. He started his career at Bankers Trust International Ltd. in London in 1989, followed by Morgan Stanley in London in 1996. In 2005, he joined Deutsche Bank in London and then moved to Deutsche Bank in Turkey in 2008 as CEO and country manager. Ersin Akyüz retired in 2019 after a thirty-year banking career and was appointed as an independent board member of the Company in April 2020.

Serpil DEMİREL Independent Board Member

Serpil Demirel holds a bachelor's degree in Metallurgical Engineering from METU. She started her career as a sales engineer at Doğa Madencilik Company within Eczacıbaşı in 1993 and worked as marketing and sales manager between 1999 and 2004. In 2004, Demirel joined Esan following the merger of Doğa Madencilik and Esan companies within Eczacıbaşı and served as domestic sales manager, marketing sales manager, marketing sales director, marketing sales director and assistant general manager, respectively. Between January 1, 2015 and March 31, 2021, she worked at Esan, first as general manager and then as CEO. Serpil Demirel was appointed as an independent board member of the Company in June 2021.

CORPORATE GOVERNANCE

*Mr. Ersin AKYÜZ resigned from the Board of Directors of the Company on 18.03.2024 and Mr. Aslı DURMAZ was appointed as a member of the Board of Directors to serve until the same term of office and to submit to the approval of the shareholders at the first general assembly meeting.

Board of Directors

Fatma Dilek BİL Independent Board Member

Having completed her high school education at Northport High School in the USA and her higher education in international finance and international marketing at the University of North Texas, Dilek Bil worked as a banker in the fields of credit and marketing at American Express Bank, Koç-American Bank, BNP-AK-Dresdner and Societe Generale. In 1994, she founded Kangaroo Communication and Consultancy and provided strategic brand communication and creative advertising solutions to many national and international brands until 2012. Since 2012, he has been providing sustainable development consultancy to organizations.

She is the founder of Purpose-Sustainable Ideas platform and a partner of Mentoro Platform. She focuses on integrating business strategies with sustainability strategies, communication with internal and external stakeholders, sustainability reporting, setting and measuring targets. It produces solutions that will pave the way for the business world in this regard. As of 2016, he is an Independent Member of the Board of Directors of Akmerkez REIT. He is the Chairman of the Risk Committee and a member of the

Corporate Governance and Audit Committees.

He is a member of WWF Turkey-DHKV Board of Directors. He manages corporate governance and risk issues. He is the Sustainability Advisor to the Board of Directors of Turkish Clothing Manufacturers' Association (TGSD) and the founding mentor of GENÇ TGSD-Sustainability Platform representing TGSD.

She is a member of UN Global Compact Turkey and works in the Environment Working Group. She served as the President of KAGIDER (Women Entrepreneurs Association) and is a member of the High Advisory Board. She is the Chairman of the Board of Directors of "Accademia Italiana della Cucina İstanbul" affiliated to the Italian Ministry of Culture. She works on the development of agriculture-based economies and gastro-economy between Italy and Turkey.

He took part in the establishment of the Friends of Wine Association in 1989 and has been the Chairman of the Board of Directors since January 2020. He works with the mission of developing viticulture and wine culture. He is a founding member of FODER (Financial Literacy and Inclusion Association) and served as Vice Chairman of the Board of Directors for 6 years. He is the advisor to the 35th President of Galatasaray Sports Club. He prepared and presented the program "Let This World Last!®" on CNBC-e to draw attention to the importance of creating economic, social and environmental benefits by integrating sustainability principles into business strategy in Turkey. She was a member of the Executive Board of the Turkish-British Business Council of DEIK and was involved in the establishment of the "Grow with Turkey" platform. She is married to Faruk Bil and is the mother of Ömer Fuad.

Mehmet Hayati ÖZTÜRK Independent Board Member

Mehmet Hayati Öztürk holds a bachelor's degree in Chemical Engineering from Hacettepe University. He started his career in 1977 at Petkim, the only large-scale petrochemical producer in Turkey, which has been listed on the stock exchange since 1990. After serving in various positions at Petkim, he was appointed as Petkim's Assistant General Manager responsible for R&D, finance, projects, investments, planning, sales and marketing. He served as Petkim's General Manager between 2010 and 2012 and as a member of the Board of Directors between 2012 and 2015. Mehmet Hayati Öztürk, who worked as the CEO advisor of SOCAR Turkey, Turkey's largest foreign investor, until August 2017, was appointed as an independent board member of the Company in April 2020.

Aydem Renewables Board of Directors

Name - Surname	Mission	Election Based Board Decision	Appointment Date	Termination Date
Aydem Holding Inc. Real Person Representative İdris KÜPELİ	Chairman of the Board of Directors	Executive Decree dated 29.03.2023 and numbered 2023/14	29.03.2023	29.03.2026
Serdar MARANGOZ	Vice Chairman of the Board of Directors	Executive Decree No. 2023/28 dated 25.10.2023	25.10.2020	29.03.2026
Galip AYKÖSE	Board Member	Executive Decree No. 2023/25 dated 25.09.2023	25.09.2023	29.03.2026
Asya Vuslat SALDANLI	Board Member	Executive Decree dated 29.03.2023 and numbered 2023/14	29.03.2023	29.03.2026
Fatma Dilek BİL	Independent Board Member	Executive Decree dated 29.03.2023 and numbered 2023/14	29.03.2023	29.03.2026
Serpil DEMİREL	Independent Board Member	Executive Decree dated 29.03.2023 and numbered 2023/14	29.03.2023	29.03.2026
Mehmet Hayati ÖZTÜRK	Independent Board Member	Executive Decree dated 29.03.2023 and numbered 2023/14	29.03.2023	29.03.2026
Ersin AKYÜZ*	Independent Board Member	Executive Decree dated 29.03.2023 and numbered 2023/14	29.03.2023	29.03.2026

29 meetings of the Board of Directors were held in 2023 and the attendance rate was realized as 100%.

	Independent Member of the Board of Directors	Female Member in the Board of Directors	Executive Member of the Board of Directors
Quantity	4	3	2
Ratio	50%	37.50%	25%

Board of Directors

Duties of the members of the Board of Directors and executives outside the Company

Name Surname	Gender	Mission	Profession	Date of First Election to the Board of Directors	Whether the Executor is in Charge	Duties in the Incorporation in the Last 5 Years	Positions Held Outside the Company as of the Latest Status
AYDEM HOLDING INC. İDRİS KÜPELİ	Male	Chairman of the Board of Directors	Manager	03/04/2020	Executive Officer	Chairman of the Board of Directors	(i) GDZ Enerji Yatırımları Inc. (representing Aydem Holding Inc.), (ii) Aydem Elektrik Perakende Inc. (representing Aydem Holding Inc.), (iii) Parla Solar Panel ve Hücre Üretim Inc. (representing Aydem Holding Inc.), (iv) Gediz Elektrik Perakende Satış Inc. (representing Aydem Holding Inc.), (v) Aydem Enerji Yatırımları Inc. (representing Aydem Holding Inc.), (vi) Aydem Plus Enerji Çözümleri Trade Inc. (representing Aydem Holding Inc.), (vii) YF Operational Kiralama Inc. (representing Aydem Holding Inc.), (viii) Akköprü Yenilenebilir Enerji Inc. (representing Aydem Yenilenebilir Enerji Inc.), (ix) Parla Enerji Yatırımları Inc. (representing Aydem Holding Inc.), (x) ADM Energy Elektrik Yatırımları Inc. (representing Parla Enerji Yatırımları Inc.), (xi) Gediz Enerji Yatırımları Inc. (representing GDZ Enerji Yatırımları A:Ş.), Vice Chairman: (i) Elsan Elektrik Gereçleri Sanayi ve Ticaret Inc. (representing Aydem Holding Inc.), Board Member: (i) Aydem Holding Inc. - CEO
SERDAR MARANGOZ	Male	Vice Chairman of the Board of Directors	Manager	25/10/2023	Executive Officer	Vice Chairman of the Board of Directors, Board Member, General Manager	Chairman of the Board of Directors : Sarı Perakende Enerji Satış Ve Ticaret Aş, Vice Chairman of the Board of Directors: Entek Elektrik İnşaat Inc., Board Member: YF Operational Leasing Inc. (representing GDZ Enerji Yatırımları Inc.), Elsan Elektrik Gereçleri San. Ve Trade Inc., Akköprü Yenilenebilir Enerji Inc.
GALİP AYKÖSE	Male	Board Member	Manager	25/09/2023	Non Executive	Board Member	Aydem Holding Inc. Chief Financial Officer, Board Member: (i) Aydem Enerji Yatırımları Inc., (ii) Gediz Elektrik Perakende Satış Inc. (representing Gdz Enerji Yatırımları Inc.), (iii) Aydem Elektrik Perakende Satış Inc. (representing Adm Energy Yatırımları Inc.), (iv) Aydem Plus Enerji Çözümleri Trade Inc.
ASYA VUSLAT SALDANLI	Female	Board Member	Engineer	20/12/2021	Non Executive	Board Member	Aydem Holding Inc. System Engineer; Chairman of the Board of Directors: Sürdür Store Tasarım Bilişim ve Ticaret Inc.
MEHMET HAYATİ ÖZTÜRK	Male	Board Member	Chemical Engineer	03/04/2020	Non Executive	Independent Board Member
ERSİN AKYÜZ	Male	Board Member	Manager	03/04/2020	Non Executive	Independent Board Member
SERPİL DEMİREL	Female	Board Member	Engineer	10/06/2021	Non Executive	Independent Board Member
FATMA DİLEK BİL	Female	Board Member	Manager	10/06/2021	Non Executive	Independent Board Member	(i) Purpose-Sustainable Ideas platform founder, (ii) Mentoro Platform partner, (iii) Akmerkez REIT Independent Board Member, (iv) WWF Turkey-DHKV Board Member, (v) Turkish Clothing Manufacturers' Association (TGSD) Board of Directors Sustainability Advisor, (vi) Member of UN Global Compact Turkey, (vii) High Advisory Board Member of KAGIDER (Women Entrepreneurs Association), (viii) Chairman of the Board of Accademia Italiana della Cucina İstanbul, (ix) Chairman of the Board of Friends of Wine Association, (x) Founding Member of FODER (Financial Literacy and Access Association)

At least 5
Years of Experience in Auditing, Accounting and/or Finance	Share in Capital (%)	Share Group Represented	Independent Member of the Board of Directors	Link to the PDP Disclosure of Independence Declaration	Whether the Independent Member is Evaluated by the Nomination Committee	Whether there are any members who lost their independence	Committees and Duties
Yes	81.56	A	Not Independent Member				Chairman of the Investment Committee
Yes		A	Not Independent Member				Investment Committee Member, Sustainability, Environment, Occupational Health and Safety Committee Member
Yes		A	Not Independent Member
No.		A	Not Independent Member
Yes			Independent Member	https://www.kap.org.tr/ en/Bildirim/1007608	Not evaluated	No.	Member of the Investment Committee - Member of the Audit Committee - Member of the Corporate Governance Committee - Chairman of the Early Detection of Risk Committee - Member of the Environment OHS Continuity Committee
Yes			Independent Member	https://www.kap.org.tr/ en/Bildirim/1007608	Not evaluated	No.	Member of the Investment Committee - Chairman of the Audit Committee - Member of the Corporate Governance Committee - Member of the Early Detection of Risk Committee - Member of the Environment OHS Continuity Committee
Yes			Independent Member	https://www.kap.org.tr/ en/Bildirim/1007608	Not evaluated	No.	Corporate Governance Committee Chairman - Early Risk Detection Committee Member - Investment Committee Member - Environment OHS Continuity Committee Member - Audit Committee Member
Yes			Independent Member	https://www.kap.org.tr/ en/Bildirim/1007608	Not evaluated	No.	Chairman of the Environment OHS Continuity Committee - Audit Committee Member - Corporate Governance Committee Member - Early Detection of Risk Committee Member - Investment Committee Member

Evaluation of the Board of Directors

Messages from Management, Risks and Opportunities

As Aydem Renewables, we use internationally recognized risk management principles in our risk management processes and fully comply with the Capital Markets Board's Corporate Governance Principles regulation. As Aydem Renewables, we integrate risk management into the entirety of our activities and strategic planning; we implement a reliable risk management mechanism in all our investment decisions and processes, and evaluate all risks and opportunities comprehensively. Thanks to our risk awareness, which has become a corporate culture in all our processes and units, we ensure that our strategic decisions and operational activities remain within the limits of our risk appetite, and we manage all risk factors that may adversely affect our Company and our stakeholders, including financial performance and reputation, in the most effective way. We regularly review the risk management policies and systems that we have determined in order to identify and analyze the risks to be encountered, determine appropriate risk limits and monitor key risk indicators and risks in comparison with the relevant limits.

The Board of Directors is responsible for establishing plans and policies regarding risk management activities at Aydem Renewables. The Board of Directors has assigned the Early Detection of Risk Committee to manage risks effectively. The Committee consists of non-executive members of the Board of Directors and is chaired by an independent member of the Board of Directors. The Early Detection of Risk Committee

convenes periodically at least six times a year and more frequently if needed. Aydem Renewables Risk Management Policy has been approved by Aydem Renewables Board of Directors and explains Aydem Renewables' risk management strategy, general principles and management principles regarding the risk management framework. The Company's risk management manager or legal and compliance manager is responsible for the creation of supporting documentation and implementation of risk management activities in parallel with the Risk Management plan and policies. In addition, risk management has been fully integrated into Aydem Renewables' daily operations and strategic planning in order to make faster decisions and take quick action in volatile and competitive market conditions.

As Aydem Renewables, we work with the belief that protecting the assets and values of our Company in the long term, ensuring sustainable financial performance, competitiveness and growth, and protecting the interests of all our stakeholders can be achieved through effective management of financial and non-financial risks. In addition to the financial effects of risks, we evaluate the reputational effects that may arise, the effects before supervisory and regulatory bodies, the effects on employees, and our value chain. As Aydem Renewables, we use internationally recognized risk management principles in our risk management processes and fully comply with the Capital Markets Board's Corporate Governance Principles regulation.

As Aydem Renewables, we integrate risk management into the entirety of our activities and strategic planning; we implement a reliable risk management mechanism in all our investment decisions and processes, and comprehensively evaluate all risks and opportunities. Thanks to our risk awareness, which has become a corporate culture in all our processes and units, we ensure that our strategic decisions and operational activities remain within the limits of our risk appetite, and we manage all risk factors that may adversely affect our Company and our stakeholders, including financial performance and reputation, in the most effective way.

Thanks to our pioneering role in renewable energy generation in our country, we actively benefit from the legal regulations and incentives that support clean energy and seize the opportunities offered by these regulations without wasting time. In this context, as an indicator of our foresighted and accurate investments in the past, 79.64% of our 2023 total net generation amount from renewable energy sources was subject to the "Renewable Energy Resources Support Mechanism" FIT (YEKDEM), the most important incentive program in our country, which was created to encourage rapid growth in renewable energy generation and offers a 10-year, dollar-indexed purchase guarantee, and thus we obtained 79.93% of our 2023 revenues with a fixed dollarindexed pricing. In this context, we manage our currency risk.

—

In order to manage operational risks, we regularly conduct structural, hydraulic, geological and topographical inspections at our power plants and prepare and implement our action plans; we continuously monitor and analyze wind data at our power plants with our technical teams. For our sustainable financial success target, thanks to our regular maintenance, all efficiency-enhancing effective reinforcement, rehabilitation works and investments, our availability ratio, which is one of the most important indicators of energy production efficiency and represents the ratio of the time when the power plant is ready to generate energy to the maximum time when the relevant power plant can theoretically generate energy, was realized as 99.6%, well above the sector average. As Aydem Renewables, we have modern power plants equipped with high quality and long-lasting equipment and machinery. With our portfolio of young power plants and continuous updates to our equipment and systems, we incur less maintenance costs, which we see as a strategic advantage, and we also believe that technology plays a critical role in the implementation of our plans to transition to a low carbon economy and our climate goals. As Aydem Renewables, we implement our environmental and social management plans prepared on the basis of all our power plants and regularly check our practices.

Furthermore, we are aware that the new incentive mechanism established by legal regulation in 2020 in order to support hybrid power plants that produce from renewable energy sources in our country is a great opportunity that we can achieve positive results in the short and medium term. Through this mechanism, which allows companies to build a new production plant on the sites of their existing plants and to benefit from the capacity in the licence of their existing plants, we aim to benefit from more than one renewable energy source in a single power plant, to eliminate the negative effects that may arise from climate change risks, and to significantly increase our efficiency, total net production and revenues.

Assessment of the Board of Directors on the Internal Audit and Control System and the Activities Carried Out in this Scope

Internal audit and control activities carried out within Aydem Yenilenebilir Enerji Inc. have a systematic structure designed to evaluate whether risk management, financial reporting, control and governance processes are carried out effectively, adequately, efficiently and in compliance with existing legal and internal regulations, and whether information systems are managed in a safe and reliable manner. The Internal Audit Function, which carries out its activities within this scope with a risk-oriented approach, reports its activities carried out to provide reasonable assurance to the Board of Directors,

shareholders and other stakeholders to the Audit Committee consisting of independent members and acts as an independent and objective assurance function that receives its authorization from the Board of Directors of the company through the Audit Committee. The Internal Audit Function also oversees the proper definition, adequate and effective realization of the objectives related to compliance with the ethical rules and working principles defined within the company and fulfills the activities within its area of responsibility.

Accordingly, central and onsite internal audit activities were conducted within the Company in accordance with the Audit Plan for 2023. Audit and control activities were found to be capable of providing a reasonable level of assurance to risk management, internal control and governance processes. Agreements were reached with the Management on actions to improve individual control deficiencies identified during the audits and periodically monitored whether these actions were implemented in a timely manner.

Evaluation of the Board of Directors

Assessment of the Board of Directors on the Financial Position and Results of Operations

As a result of great efforts and devoted work, our company was offered to the public on April 29, 2021 and started trading on the Borsa İstanbul - Stars Market and was recorded as the largest public offering of the last three years with a size of TL 1.3 billion.

In addition, the sale and issuance of USD 750 million bonds with a maturity of 5.5 years was completed on August 2, 2021. With the amount obtained through the bond issuance, the Company's loan debt to the banks has been fully repaid and the remaining amount is planned to be used in the next 3 years in line with the Company's goal of doubling its installed capacity. With this successful bond issuance, in which leading fund institutions from around the world participated, the Company will not make any principal payments for three years and this fund will be used for investments in the same way.

As of March 20, 2021, our Company has started to apply cash flow hedge accounting in order to present financial performance more accurately and reflect the results of operations more realistically.

In 2023, 2,380 GWh of generation was realized, generating revenues of TL 6.4 billion. With the positive contributions of effective portfolio management and high availability ratios, our EBITDA was realized at TL 5.2 billion, corresponding to an EBITDA margin of 82%.

The Company's net financial debt, which was TL 19 billion in 2022, amounted to TL 18 billion at the end of 2023, with a net financial debt/ EBITDA ratio of 3.5.

Assessment of the Board of Directors on the Committees

There are five committees within the Board of Directors: Audit Committee, Corporate Governance Committee, Early Detection of Risk Committee, Investment Committee, Sustainability, Environment, Occupational Health and Safety Committee.

The Audit Committee convenes at least four times a year, at least once every three months; the Corporate Governance Committee convenes at least four times a year; the Early Detection of Risk Committee convenes at least six times a year; the Investment Committee convenes once every three months; and the Sustainability, Environment, Occupational Health and Safety Committee convenes once every three months.

The Committees convened in accordance with the meeting agendas established within the scope of their objectives and duties, within the framework of their working principles, and recommendations and presentations were made to the Board of Directors in line with the decisions taken.

Detailed information on committees

https://yatirimciiliskileri. aydemyenilenebilir.com.tr/en/ corporate-governance/board-of directors/committees

Senior Management

Serdar MARANGOZ

General Manager

Serdar Marangoz graduated from METU Electrical and Electronics Engineering Department and started his career at Siemens AG. Since 2009, Mr. Marangoz has assumed senior management positions in different companies under the umbrella of Aydem Energy, and continued to work as Aydem Electricity Market and Regulation Manager, Executive Board Member at ADM and GDZ Electricity Distribution companies, respectively. In 2019, he was appointed as Chief Commercial Officer (CCO) of Aydem Energy and Board Member of Aydem Renewables. In 2019, he was appointed as a member of the Board of Directors of Aydem Retail and Gediz Retail companies, as well as general manager since 2021. Until 2023, he served as the general manager of retail group companies. As of October 25, 2023, Marangoz has been serving as the General Manager of Aydem Renewables.

**Fırat SOĞANCIK* Finance Director**

Fırat Soğancık graduated from İstanbul Technical University, Department of Management Engineering and worked as Structured Finance Senior Specialist at TAV Airports Holding between August 2005 and September 2009. He then worked at Zorlu Enerji as Structured Finance Chief from October 2009 to November 2010 and at Ak Enerji as Business Planning and Modeling Manager from November 2010 to November 2014. Subsequently, he worked as Budget and Control Manager at Akcez Energy from December 2014 to December 2015. Between January 2016 and June 2021, he served as Deputy CFO and Acting CFO at Sakarya Elektrik Dağıtım Inc. Fırat Soğancık, who started as Treasury Manager at Aydem Renewables in September 2021, was appointed as the Company's Financial Affairs Director in April 2023.

Adnan CAN

Operations Director

Adnan Can graduated from Karadeniz Technical University, Department of Electrical and Electronics. He started his career at EÜAŞ in 1990, where he worked in various managerial positions. Adnan Can was appointed as Operations Director at Aydem Renewables in 2019.

*Mr. Fırat Soğancık, who served as the Finance Director of our Company, resigned from his position as of March 31, 2024. At the Board of Directors Meeting of our Company dated April 1, 2024 and numbered 2024/13, it was decided to appoint Mr. Mehmet Özülkü as the Financial Affairs Director.

Senior Management

Hüseyin GÜNLÜ

Project and Maintenance Director Hüseyin Günlü holds a bachelor's degree in Mechanical Engineering from Gaziantep University. He started his career as a site supervisor at Batman Dam and HPP in 1995, as a site supervisor at Karkamış Dam and HPP between December 1997 and February 1999, as a calibration specialist at TSE-Sojustest Metrology and Calibration Company between March 1999 and November 2001, and as a mechanical maintenance specialist engineer at Petkim Petrokimya Holding Inc. between November 2001 and August 2008. Between August 2008 and August 2009, he worked as a senior mechanical maintenance engineer at Botaş Oil Pipeline Company.

In August 2009, Günlü rejoined Petkim Petrokimya Holding Inc., where he had previously worked as a mechanical maintenance specialist engineer, and worked as central workshop manager until November 2011, and then as mechanical and construction support manager between November 2012 and October 2016. After working as project manager at PSG Engineering and Construction between May 2017 and October 2018, Günlü worked as project and plant manager at Salt Project Makine between October 2018 and February 2019. Günlü has been working as Maintenance and Project Director at the Company since February 2019.

Erdem UYSAL

Investment and Business Development Director

Erdem Uysal graduated from Middle East Technical University, Department of Civil Engineering and started his career in 2006 in Gama's industrial plant project abroad. He then took part in İçtaş›s cultural center and living complex projects abroad. In 2010, he returned to Turkey and worked in Finansbank's project finance team. Subsequently, he assumed different roles in project management, budget, work program and contract management in İçtaş's and Rönesans' domestic projects. Until May 2022, Uysal worked as Asset Management Director at Rönesans, managing investment plans and operating budget processes, before joining Aydem Energy. Uysal took office as Aydem Renewables Investment and Business Development Director in January 2023.

		Personnel with a Voice in Management

Name-Surname	Mission	Profession	Duties in the Incorporation in the Last 5 Years	Positions Held Outside the Company as of the Latest Status
Serdar MARANGOZ	Vice Chairman of the Board of Directors, General Manager	Manager	Vice Chairman of the Board of Directors, Board Member, General Manager	Chairman of the Board of Directors: Sarı Perakende Enerji Satış Ve Ticaret Aş, Vice Chairman of the Board of Directors: Entek Elektrik İnşaat Inc., Board Member: YF Operational Leasing Inc. (representing GDZ Enerji Yatırımları Inc.), Elsan Elektrik Gereçleri San. Ve Trade Inc., Akköprü Yenilenebilir Enerji Inc.
Fırat SOĞANCIK*	Finance Director	Certified Public	Finance Director,
		Accountant	Treasury Manager
Adnan CAN	Operations Director	Electrical	Operations Director
		Engineer
Hüseyin GÜNLÜ	Maintenance and	Mechanical	Maintenance and
	Project Director	Engineer	Project Director
Erdem UYSAL	Investment and Business Development Director	Civil Engineer	Investment and Business Development Director

Financial Rights Provided to Board Members and Senior Executives

—Between 01.01.2023-31.12.2023, the total gross amount of financial benefits provided to Board Members and Senior Executives is TL 37,374,290.

Declaration of Compliance with Corporate Governance Principles

Aydem Yenilenebilir Enerji Inc. ("the Company") continues its efforts to internalize and implement the "Corporate Governance Principles" determined by the Capital Markets Board ("CMB") within the Company. The Investor Relations Unit, which is assigned to internalize and develop Corporate Governance practices and whose activities are overseen by the Company's Corporate Governance Committee, continues its activities in the areas of public disclosure and transparency, shareholder and stakeholder relations within the framework of the Capital Markets Law ("CMB"), the Turkish Commercial Code ("TCC"), the Company's Articles of Association and the CMB Corporate Governance Communiqué No. II-17.1 ("Communiqué").

The Company is in the first group according to the grouping made by the CMB according to the systemic importance of companies in terms of the implementation of Corporate Governance Principles. In this context, the Company complies with all mandatory Corporate Governance Principles.

On the other hand, the Corporate Governance Principles, which are not mandatory but not yet implemented/ partially implemented within the Company, have not led to any conflict of interest so far. In this context, the principles not yet implemented/ partially implemented are listed below:

Regarding principle numbered 1.4.2, the Company has shares with privileged voting rights; According to the Company's Articles of Association;

Provided that the capital represented by Class A shares continues to represent at least 30% of the issued capital of the Company, half of the members of the Company's Board of Directors shall be elected among the candidates nominated by the shareholders holding the majority of the capital represented by Class A shares,
· Approval of the annual report, budget and financial statements and release of the members of the Board of Directors,
· To amend the articles of association, except for capital increases to be made according to the registered capital system,
· Changing the Company's field of activity, entering into new lines of business or abandoning existing lines of business
· Capital increase, liquidation, dissolution, termination, capital decrease, change of type of the Company, except for capital increases to be made according to the registered capital system,
· To apply for bankruptcy, concordat, financial restructuring within the scope of Article 309/m. of the Execution and Bankruptcy Law No. 2004,
· To transfer all or part of the commercial enterprise of the Company,
· In order for Class A shares to be sold on the stock exchange, such

sale must be approved by the shareholders holding the majority of the capital represented by Class A shares,

· can only be taken with the approval of the shareholders holding the majority of the capital represented by Class A shares.

Regarding principle 1.5.2, utmost care is given to the exercise of minority rights. Shareholders constituting one-twentieth of the share capital may request the Board of Directors to call the general assembly for a meeting by stating the reasons and the agenda in writing, or if the general assembly is already convened, they may request the Board of Directors to put the matters they wish to be resolved on the agenda. The request to add an item to the agenda is made pursuant to Article 411 of the Law.

Regarding principle 3.4.1, the Company holds ISO 9001: Quality Management System, ISO 14001: Environmental Management System, ISO 27001: Information Security Management System, ISO 45001: Occupational Health and Safety Management System and ISO 50001: Energy Management System certificates as an indicator of its sensitivity to quality, environment, community and employee health in all its activities. The Company is committed to maximizing customer and employee satisfaction through its quality, environmental, information security, occupational health and safety management systems policies.

Regarding principle no. 4.2.8; although the Company has a directors and officers liability insurance, the policy amount is below the rate mentioned in the Communiqué, considering the high capital of the Company.

Regarding principle no. 4.4.7; due to the significant contribution of the Company's Board Members' work experience and sectoral experience to the Board of Directors, they are not restricted from assuming other duties outside the Company and this situation does not cause any conflict of interest. It is also submitted for the information of the shareholders at the general assembly meeting. The resumes of our Board Members are included in our annual report and on the Company's corporate website.

Regarding principle no. 4.5.5; Committees are formed in accordance with the relevant regulations, taking into account the knowledge and experience of the members of the Board of Directors, and based on the requirement of the Communiqué that the chairmen of the committees should be elected among the Independent Members of the Board of Directors, the members of the Board of Directors are assigned to more than one committee, taking into account the number of committees to be formed. On the other hand, members serving on more than one committee ensure communication between the committees working on related issues, increase opportunities for cooperation and ensure that the committees act in accordance with their legal authorities and responsibilities.

Regarding principle 4.5.7; since the Committees do not receive consultancy services from any

person/organization, information on the independence of the consultancy service is not included in the annual report.

Regarding principle no. 4.6.5; it is aimed to establish a balance between the rights and interests that need to be protected in terms of the Personal Data Protection Law and Remuneration Policy and the rights of shareholders and stakeholders to receive information in terms of the transparency requirement in accordance with the Communiqué, taking into account the principle of proportionality in the disclosure of remuneration and fringe benefits provided to the members of the Board of Directors and senior executives. In this context, the remuneration of the members of the Board of Directors and senior executives is not disclosed on an individual basis and is included in the annual report as a total amount.

According to the Corporate Governance Rating Report prepared by SAHA Kurumsal Yönetim ve Kredi Derecelendirme Hizmetleri Inc. and disclosed to the public on April 7, 2023, the Company's corporate governance rating score is 9.56 (out of 10) and the main headings are as follows: Shareholders 9.21, Public Disclosure and Transparency 9.88, Stakeholders 9.92 and Board of Directors 9.42. The Company has been included in the Borsa İstanbul Corporate Governance Index (XKURY) since April 21, 2022.

The Company's "Corporate Governance Compliance Report" and "Corporate Governance Information Form" for the year 2023 were published on the Corporate Website of the Public Disclosure Platform (https://www.kap.org.tr/en/) on March 3, 2023 in accordance with the CMB's decision dated 10.01.2019

and numbered 2/49. The relevant report and information form and their updates during the period can be accessed by selecting the Company name, notification type and subject (Corporate Governance Information Form/Corporate Governance Compliance Report) from the detailed query field in the notification queries tab.

https://www.kap.org.tr/en/ Bildirim/1119444 https://www.kap.org.tr/en/ Bildirim/1119443

In addition, in order to increase the Company's compliance with corporate governance principles in 2024, an action plan has been prepared for the non-mandatory and non-implemented items and all necessary work is underway for all practices that can be put into effect in this regard.

As Aydem Renewables, we are pleased to announce the launch of our newly designed Investor Relations website. With this advanced userfriendly platform, we aim to prioritize open and timely communication with our stakeholders by providing comprehensive and up-to-date information about the Company in terms of corporate governance, facilitating access for investors and other interested parties.

You can access our Investor Relations website at ttps://yatirimciiliskileri. aydemyenilenebilir.com.tr/en

We are committed to transparency and open communication with our stakeholders. This new website aims to continue our ongoing commitment to providing a valuable resource for the investment community.

Committees and Policies

In accordance with the relevant legislation, a total of five committees were established within the Company as Audit Committee, Corporate Governance Committee, Early Detection of Risk Committee, Investment Committee and Sustainability, Environment, Occupational Health and Safety Committee with the resolution of the Board of Directors dated July 6, 2020 and numbered 2020/27. Details regarding the job descriptions and working principles of the committees are given below. Pursuant to the Articles of Association, changes in the working principles of the committees are subject to the approval of the Board of Directors.

Audit Committee

The Audit Committee fulfills the duties and responsibilities set forth in the working principles and undertakes the duties assigned to it by the Articles of Association and the Corporate Governance Communiqué. The main purpose of the Audit Committee is to oversee the Company's accounting system and practices, the functioning of the internal control system, the public disclosure of the Company's financial information, the effectiveness of the Company's internal audit and independent audit activities and the Company's compliance with the relevant legislation and corporate ethical rules. The Audit Committee consists of at least two members and the members of the Audit Committee are elected among the independent members of the Board of Directors. At least one of these members must have five years of experience in audit/accounting and finance. In the event that any member of the Committee ceases to be a member of the Board of Directors or loses the title of independent member in

accordance with the capital markets legislation, the membership of the Committee shall also cease. The members of the Audit Committee and the Chairman of the Committee are determined by the Board of Directors. The term of office shall not exceed three years and committee members whose term of office expires may be reappointed. The Audit Committee convenes with the presence of the absolute majority of its members and takes decisions with the majority of the members present at the meeting. The Audit Committee shall convene at least four times a year, at least once every three months, except in cases where it convenes urgently within the framework of the Principles on Regarding Related Party Transactins, and the Audit Committee meetings shall be held at the Company headquarters or at another location where the members of the Audit Committee are present, prior to each scheduled board meeting, in line with the timing of the board meetings to the extent possible. The Audit Committee shall put all its work in writing, keep a record of it and report to the Board of Directors, including information on the work of the Audit Committee and the results of the Audit Committee meetings, and shall immediately notify the Board of Directors in writing of the findings and recommendations related to its duties and responsibilities. Minutes of the Audit Committee meetings are approved by the Committee members and kept with the Committee decisions.

The Company's internal audit manager or a member appointed by the Committee assumes the responsibility of Rapporteur reporting to the Committee Chairman. The Rapporteur presents the meeting agenda and related documents

to the Committee members before the meeting. He/she ensures the attendance of the persons requested by the Chairman to attend the meeting. He/she writes the minutes and decisions of the meeting and ensures their distribution to the relevant parties. The secretariat of the Board of Directors is responsible for the administrative organization of the meetings, the distribution of the minutes of the meetings to the members of the Board of Directors and the storage of the decisions in the decision book. Unless invited by the Committee Chairman, no one other than the Committee members may attend the Committee meetings.

The Audit Committee fulfills the following duties, including but not limited to the following:

· The Company's responsible managers and the independent external auditor take the opinions of the Company's responsible managers and the independent external auditor regarding the accuracy and compliance of the annual and interim financial statements (including footnotes) to be disclosed to the public with the accounting principles followed by the Company, and report to the Board of Directors in writing together with their own assessments.
· The selection of the independent audit firm, preparation of independent audit contracts and initiation of the independent audit process, and the work of the independent audit firm at every stage are carried out under the supervision of the Audit Committee.
· The Audit Committee determines the independent audit firm to be retained by the Company and the services to be provided by such firm, and submits the same to the

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Board of Directors for approval to be submitted to the opinion of the Company's shareholders. The Audit Committee receives a written statement from the independent external auditor confirming that he/ she is independent in independent audits and reports to the Board of Directors its assessment of any factors that may threaten the independence of the external auditor before the selection of the independent external auditor is proposed to the Board of Directors.

· Oversee that the independent external auditor fulfills its obligation to share with the committee significant issues related to the Company's accounting policy and practices, alternative implementation and disclosure options within the framework of the relevant accounting standards and accounting principles previously communicated to the Company management, their possible results and implementation proposal, and significant correspondence between the Company management and the Committee.
· The Board of Directors is obliged to convene extraordinary meetings to examine the terms and conditions of each discontinuous related party transaction exceeding 3% of the Company's gross profit in the profit and loss statement for the previous year or total assets in the balance sheet for the previous year and to submit a report to the Board of Directors on each discontinuous related party transaction exceeding the said limit.
· In cases where the Corporate Governance Communiqué or other relevant rules and regulations require the preparation of an independent valuation report, the Audit Committee ensures that this independent valuation report is

obtained and that references to this independent valuation report are included in the Audit Committee report.

· At its meetings following the publication of the relevant quarterly financial statements, the Board reviews the related party transactions carried out in accordance with the continuous related party transaction for which annual approval has been obtained during the relevant period and submits a report to the Board of Directors following its annual review of related party transactions.
· Ensures that the internal audit activity operates independently and objectively. Continuously review internal audit responsibilities, resources, activities and performance. Review and approve the regulations and procedures defining internal audit authorities, responsibilities and processes. Review and approve the internal audit organization, working principles, annual audit plan and possible updates to these matters.
· Oversees any difficulties that may be encountered in the conduct of internal audit activities, including restrictions on access to information required under the audit principles. Review reports, findings, actions and action status prepared by the Internal Audit Unit.
· It conveys its opinions and suggestions regarding the Company's internal control system to the Board of Directors, taking into consideration the notifications of the Company's senior management and independent external auditor on the subject.
· It ensures that all necessary measures are taken to ensure that both internal audit and independent external audit are carried out in an adequate and

transparent manner.

· Review and ensure the implementation of policies and procedures regarding unethical transactions and misconduct. Oversees the establishment of the necessary mechanisms to communicate relevant issues to the committee.
· It oversees compliance with internal regulations to prevent conflicts of interest that may arise between the members of the Board of Directors, senior management or other related parties and the misuse of information that is a trade secret or that may affect the value of the Company's shares.
· It receives reports from the Company's Legal and Compliance Consultancy regarding the regulations within the scope of compliance with the legislation.
· When necessary, the internal audit, independent audit and the Company's accounting or internal control system evaluate the behaviors of the officials who assume important duties in the Company's accounting or internal control system in violation of the regulations set forth herein, and share their findings and recommendations on this matter with the Board of Directors.
· The Audit Committee determines the methods and criteria to be applied in the examination and finalization of the complaints received by the Company regarding the Company's accounting and internal control system and independent audit, and in the evaluation of the notifications of the Company's employees regarding the Company's accounting and independent audit within the framework of the confidentiality principle.

Committees and Policies

· Upon the request of the Board of Directors, it undertakes other duties and responsibilities that may be considered within the scope of its field of duty.
· It evaluates the effectiveness of the risk management system carried out within the scope of the Company and shares information and works in cooperation with other committees established by the Board of Directors for this purpose.
· In the event that the Company's shares are offered to the public, the Company is obliged to prepare a report within ten business days following the public disclosure of its financial statements for a period of two years following the commencement of trading of the relevant shares on the stock exchange, including an assessment of whether the assumptions taken as a basis in determining the public offering price have been realized or not, and if not, the reason thereof.
· The decisions of the Audit Committee are advisory to the Board of Directors and the work and recommendations of the committee do not eliminate the responsibilities of the members of the Board of Directors arising from the TCC. The Board of Directors provides the necessary resources and support for the Audit Committee to fulfill its duties and responsibilities. The Audit Committee may obtain information from the Company's executives and employees (within the framework of confidentiality, if necessary) regarding the matters subject to its review or when deemed necessary, and may invite the relevant persons to the committee meetings. The Audit Committee may benefit from the opinions of independent experts on matters deemed necessary in relation to its activities.

Corporate Governance Committee

The Corporate Governance Committee fulfills the duties and responsibilities set forth in the working principles and undertakes the duties assigned to it by the Articles of Association and the Corporate Governance Communiqué. The main purpose of the Corporate Governance Committee is to assist the Board of Directors in complying with corporate governance principles, including investigations in case of non-compliance with corporate governance principles and identification of conflicts of interest, overseeing the investor relations unit and fulfilling the duties delegated to the Nomination Committee and Remuneration Committee.

The Committee is composed of at least three members who are members of the Board of Directors or who are not members of the Board of Directors but have expertise in their own fields, and the chairman of the Corporate Governance Committee is elected from among the independent members of the Board of Directors. The majority of the Committee members are elected from nonexecutive members of the Board of Directors. The Investor Relations Unit Manager is a natural member of the Corporate Governance Committee.

The members of the Corporate Governance Committee are determined by the Board of Directors. The term of office may not exceed three years and committee members whose term of office expires may be reappointed. The members of the Corporate Governance Committee shall be selected from among the non-executive members of the Board of Directors as far as possible.

The Corporate Governance Committee may include experts in accounting, finance, audit, law, management, etc. The Corporate Governance Committee convenes at least four times a year, as often as deemed necessary for the efficiency of its activities, at the Company headquarters or at another location where the committee members are present. The timing of the meetings of the Corporate Governance Committee shall be compatible with the timing of the Board of Directors meetings as much as possible. The Corporate Governance Committee convenes with the presence of the absolute majority of its members and takes decisions with the majority of the members present at the meeting. The Corporate Governance Committee puts all its activities in writing, keeps a record of them and reports to the Board of Directors, including information on the results of committee activities and committee meetings. The Corporate Governance Committee immediately notifies the Board of Directors in writing of any findings and suggestions related to its duties and responsibilities.

The Remuneration Committee and the Nomination Committee are now under the Corporate Governance Committee. With this decision; The Corporate Governance Committee is responsible for establishing a transparent system for the identification, evaluation and training of suitable candidates for the Board of Directors and managerial positions with administrative responsibilities, and determining policies and strategies in this regard.

The Corporate Governance Committee regularly evaluates the structure and efficiency of the Board of Directors and submits its

recommendations to the Board of Directors regarding possible changes in these matters.

The Board of Directors determines the principles, criteria and practices to be used in the remuneration of the members of the Board of Directors and executives with administrative responsibilities by taking into account the long-term goals of the Company and oversees them.

The Corporate Governance Committee submits its recommendations to the Board of Directors regarding the remuneration of board members and executives with administrative responsibilities, taking into account the degree of achievement of the criteria used in remuneration.

The Corporate Governance Committee evaluates the nominations for independent membership, including those of the management and shareholders, by taking into consideration whether the candidate meets the independence criteria or not, and submits its assessment in a report to the Board of Directors for its approval.

Minutes of the Corporate Governance Committee meetings are approved by the Corporate Governance Committee members and kept with the Committee decisions. Minutes are shared with the members before the next meeting and official approval is obtained at the next meeting. The Company's investor relations unit manager or a member appointed by the Committee assumes the responsibility of Rapporteur reporting to the Committee Chairman. The Rapporteur submits the meeting agenda and related documents to the Committee members before the meeting. He/she ensures the

attendance of the persons requested by the Chairman to attend the meeting. He/she writes the minutes and decisions of the meeting and ensures their distribution to the relevant parties. The secretariat of the Board of Directors is responsible for the administrative organization of the meetings, the distribution of the minutes of the meetings to the members of the Board of Directors and the storage of the decisions in the decision book.

The Corporate Governance Committee fulfills the following duties, including but not limited to the following:

· Preparation of proposals for the appointment of members to the Board of Directors,
· Ensuring the effectiveness and independence of the members of the Board of Directors within the scope of corporate governance principles,
· Ensuring the acceptance and implementation of corporate governance principles by the Board of Directors,
· Providing coordination and oversight for the realization of corporate governance assessment and rating activities.

Early Detection of Risk Committee

The Early Detection of Risk Committee fulfills the duties and responsibilities set forth in the working principles and undertakes the duties assigned to it by the Articles of Association and the Corporate Governance Communiqué. The main purpose of the Early Detection of Risk Committee is to assist the Board of Directors in the early detection of risks that may jeopardize the existence, development and continuity of the Company, to implement appropriate risk management strategies and to

establish an expert committee for risk management and to fulfill other duties assigned to it by the legislation. The Early Detection of Risk Committee consists of at least two members. In case the Early Detection of Risk Committee consists of two members, both of them, and in case there are more than two members, the majority of the members are elected from the non-executive members of the Board of Directors. The chairman of the Committee is elected from among the independent members of the Board of Directors. Specialists who are not members of the Board of Directors may be included in the committee.

The members of the Early Detection of Risk Committee are determined by the Board of Directors. The term of office may not exceed three years and committee members whose term of office expires may be reappointed. The members of the Early Detection of Risk Committee are selected from among the non-executive members within the scope of possibilities. Risk may be assigned to the Risk Committee. The Early Detection of Risk Committee convenes at least six times a year, as often as deemed necessary for the effectiveness of its work, at the Company headquarters or at another location where the committee members are present. The timing of the meetings of the Early Detection of Risk Committee shall be compatible with the timing of the Board of Directors meetings as much as possible. The Early Detection of Risk Committee convenes with the presence of the absolute majority of its members and takes decisions with the majority of the members present at the meeting. The Early Detection of Risk Committee puts all its activities in writing, keeps a record of them and reports to the Board of Directors, including information

Committees and Policies

on the results of the activities and meetings of the Early Detection of Risk Committee. The Risk Committee immediately notifies the Board of Directors in writing of the findings and suggestions related to its duties and responsibilities.

Minutes of the meetings of the Early Detection of Risk Committee are approved by the members of the Early Detection of Risk Committee and kept with the decisions of the Committee. The Company's manager in charge of risk management or the legal and compliance manager or a member appointed by the Committee assumes the responsibility of Rapporteur reporting to the Committee Chairman. The Rapporteur submits the meeting agenda and relevant documents to the Committee members before the meeting. He/ she ensures the attendance of the persons requested by the Chairman to attend the meeting. He/she writes the minutes and decisions of the meeting and ensures their distribution to the relevant parties. The secretariat of the Board of Directors is responsible for the administrative organization of the meetings, the distribution of the minutes of the meetings to the members of the Board of Directors and the storage of the decisions in the decision book.

The Early Detection of Risk Committee fulfills the following duties, including but not limited to the following

· Identifying and periodically assessing existing and potential operational, strategic, compliance, financial and other risks and preparing recommendations for taking relevant actions in connection with these risks,
· Establishment of risk management systems and establishment of organizational infrastructures

related to risk management within the Company and preparation of proposals for the development of related systems to increase functionality,

· Suggesting solutions to risks to the Board of Directors and the Audit Committee,
· Identifying, evaluating and monitoring the existing and potential risk factors that may affect the achievement of the Company's objectives within the framework of the corporate risk management systematic and ensuring that the principles for managing the relevant risks in accordance with the Company's risk profile are determined and used in decision-making mechanisms, · Establishing a company-wide corporate risk management approach, ensuring the establishment and maintenance of an effective risk management framework,
· Carrying out studies to determine the risk policies and the relevant standards and methodologies used in managing the risks within the Company and submitting them to the Board of Directors for approval,
· Carrying out studies to prepare policies that define the Company's risk appetite and are in line with the strategic plan and targets approved by the Board of Directors, and submitting these studies to the Board of Directors for approval,
· Establishing the indicators within the scope of risk appetite and proposals regarding their levels, submitting them to the Board of Directors for approval, monitoring the indicators and presenting the results, evaluations and recommendations to the Board of Directors when necessary,
· Ensuring that the Company's strategies and risk appetite are

effectively implemented throughout the Company,

· Adequately informing the members of the Board of Directors about the Company's risk-creating activities, including strategic management, capital and resource management, risk profile, risk appetite, business activities, financial performance and reputation, and presenting recommendations to the Board of Directors in this context,
· Ensuring that internal processes are maintained, including stress testing where appropriate, to ensure that capital and liquidity levels and asset-liability structure are in line with the normal and stressed conditions of the company,
· Evaluating and proposing risk management strategies for the risks to be accepted and managed, shared or completely eliminated in the Company for the risks assessed according to probability and impact calculations,
· Providing an opinion to the Board of Directors to establish internal control systems, including risk management and information systems and processes that can minimize the effects of risks that may affect the Company's stakeholders, particularly shareholders,
· Ensuring the integration of risk management and internal control systems into the Company's corporate structure and business processes,
· Evaluating and approving the risk studies carried out within the Company, informing the Board of Directors when necessary and presenting suggestions,
· Evaluate the development and maintenance of management reporting to ensure that information is timely, accurate and relevant,
· Monitoring the latest status of audit

matters and findings, evaluating the effectiveness and efficiency of the actions taken,

· Overseeing the activities related to business continuity management,
· Reviewing the risk management systems at least once a year and overseeing that the practices of the relevant departments that assume responsibility for the management of risks are carried out in accordance with the decisions of the Early Detection of Risk Committee,
· Early detection of technical insolvency and alerting the Board of Directors and developing proposals on measures to be taken,
· In the quarterly report to be submitted to the Board of Directors, assessing the situation, pointing out the dangers, if any, and showing the remedies and sharing this report with the independent auditor, the Audit Committee and the Internal Audit Unit,
· Preparation and submission to the Board of Directors of an annual evaluation report to form the basis for the Board of Directors' assessment of the Early Detection of Risk Committee members, frequency of meetings, working principles including the activities carried out and the effectiveness of the committee, which will be included in the annual report.

own authority and responsibility, and submits a quarterly report to the Board of Directors containing its assessment of the situation, recommendations and suggestions. These reports submitted to the Board of Directors are also communicated to the independent auditor. The Board of Directors is responsible for the final decision.

Investment Committee

The Investment Committee fulfills the duties and responsibilities set forth in the working principles and undertakes the duties assigned to it by the Articles of Association. The main purpose of the Investment Committee is to evaluate, submit for the approval of the Board of Directors and followup processes of investment and business development projects over USD 1 million, which are in line with the purpose and subject matter of the Company's Articles of Association. The Investment Committee consists of at least three members.

The members of the Investment Committee are appointed by the Board of Directors. The term of office may not exceed three years and committee members whose term of office expires may be reappointed. The Investment Committee convenes quarterly. In cases deemed necessary for the efficiency of the work, it may convene more frequently at the Company headquarters or at another location where the committee members are present. The timing of the Investment Committee meetings shall be consistent with the timing of the Board of Directors meetings to the extent possible. The Investment Committee convenes with the presence of the absolute majority of its members and takes decisions with the majority of the members present at the meeting.

The Investment Committee puts all its activities in writing, keeps a record of them and reports to the Board of Directors, including information on the Committee's activities and the results of the Committee meetings. The Investment Committee immediately notifies the Board of Directors in writing of any findings and suggestions related to its duties and responsibilities. Minutes of the Investment Committee meetings are approved by the Committee members and kept with the Committee decisions. Minutes are shared with the members before the next meeting. The Company's Chief Financial Officer or a member appointed by the Committee assumes the responsibility of Rapporteur reporting to the Committee Chairman. The Rapporteur submits the meeting agenda and related documents to the Committee members before the meeting. He/ she ensures the attendance of the persons requested by the Chairperson to attend the meeting. He/she writes the minutes and decisions of the meeting and ensures their distribution to the relevant parties. The secretariat of the Board of Directors is responsible for the administrative organization of the meetings, distribution of the minutes of the meetings to the members of the Board of Directors and keeping the decisions in the dicion book. The Investment Committee evaluates the Investment Projects to be realized within the Company, its subsidiaries or affiliates according to certain Investment Criteria and reports its opinions on the relevant investment to the Board of Directors. The relevant reporting is prepared by taking into account project basic and feasibility analyses, project financing analyses, budget approval and Investment Criteria. The Board of Directors is authorized to take investment decisions regarding

Committees and Policies

investment projects. However, the Board of Directors cannot take an investment decision without the opinion of the Investment Committee on the relevant investment project. Investment Projects must be realized in accordance with the following criteria:

· No investment in power plants using fossil fuels for energy production;
· Not making investments that are incompatible with the Company's sustainability, environment, occupational health and safety, governance and social policies;
· Not conflict with obligations under existing contracts, including loan agreements;
· The internal rate of return (equity IRR) of any asset under construction, development and/or development is not less than 10% in US dollars,
· Except for investments that are considered to have a strategic and significant impact on the Company's long-term policies and growth plans, the investment amount of any asset is not more than 20% of the total asset value;
· The total investment amount of assets under construction and/or under construction is not more than 25% of the total asset value;
· Preventing concentration of counterparty risk by ensuring that revenues from a single customer do not exceed 30% of total revenues;
· Not investing in projects that have a negative impact on UNESCO World Heritage sites or areas designated for nature conservation (e.g. Wetlands of International Importance under the Ramsar Convention); and
· Not investing in projects involving child labor and forced labor.

All kinds of resources and support required for the Committee to fulfill its duties are provided by the Board of Directors. The Committee may invite the managers and consultants it deems necessary to its meetings and receive their opinions. The Committee shall benefit from the opinions of experts and consultants when necessary.

Sustainability, Environment, Occupational Health and Safety Committee

The Sustainability, Environment, Occupational Health and Safety Committee fulfills the duties and responsibilities set out in the working principles and undertakes the duties assigned to it by the Articles of Association. The main purpose of the Sustainability, Environment, Occupational Health and Safety Committee is to develop a culture of sustainability, life, occupational health and safety that encompasses the Company's employees and all operating facilities, and to proactively adopt and develop a safe behavior approach, including environmental regulations and activities. In addition, it is to inform the Board of Directors about preventive/improvement measures, areas of opportunity and operational results to ensure the implementation of sustainability principles. The Sustainability, Environment, Occupational Health and Safety Committee consists of a Board member or the General Manager, Operations Director, Maintenance and Projects Director, HSE and Sustainability Manager. The Chairman of the Sustainability Working Group also participates in the Committee, contributes to the issues on the agenda and records the meeting notes.

In the event that the meeting agenda of the Sustainability, Environment, Occupational Health and Safety Committee includes items on stakeholder engagement and social impact, the Human Resources Director and Corporate Communications Manager also attend. The Independent Board Member chairs the Committee.

The members of the Sustainability, Environment, Occupational Health and Safety Committee are appointed by the Board of Directors. The term of office may not exceed three years and committee members whose term of office expires may be reappointed. The Sustainability, Environment, Occupational Health and Safety Committee convenes quarterly. In cases deemed necessary for the effectiveness of the work, it convenes more frequently at the Company headquarters or at another location where the committee members are present. The timing of the Occupational Health, Safety and Environment Committee meetings is aligned with the timing of the Board of Directors meetings as much as possible. The Sustainability, Environment, Occupational Health and Safety Committee convenes with the presence of the absolute majority of its members and takes decisions with the majority of the members present at the meeting. The Sustainability, Environment, Occupational Health and Safety Committee puts all its activities in writing, keeps records and reports to the Board of Directors, including information on the results of the Committee's activities and Committee meetings. The Sustainability, Environment, Occupational Health and Safety Committee immediately notifies the Board of Directors in

writing of any determinations and recommendations related to its duties and responsibilities. Minutes of the Sustainability, Environment, Occupational Health and Safety Committee meetings are approved by the Committee members and kept with the Committee decisions. The Company's HSE and Sustainability Manager or a member appointed by the Committee or the Head of the Sustainability Working Group assumes the responsibility of Rapporteur reporting to the Committee Chairman. The Rapporteur presents the meeting agenda and relevant documents to the Committee members before the meeting. He/she ensures the attendance of the persons requested by the Chairman to attend the meeting. He/she writes the minutes and decisions of the meeting and ensures their distribution to the relevant parties. The secretariat of the Board of Directors is responsible for the administrative organization of the meetings, the distribution of the minutes of the meetings to the members of the Board of Directors and the storage of the decisions in the decision book.

The Sustainability, Environment, Occupational Health and Safety Committee fulfills the following duties, including but not limited to

· OHS performance and targets, taking into account feedback from the OHS Board and Life Safety Subcommittee and field personnel;
· Studies to ensure continuous improvement and development in environmental activities;
· Evaluation of feedback on environmental and social performance, energy consumption, waste management, environmental and social risks;
· Evaluation of KPI applications and related issues;
· Evaluation of OHS culture dissemination activities and planned management walks and audit results;
· Monitoring and reporting of training activities on OHS, environmental and social issues;
· Setting targets for the prevention of occupational accidents and occupational diseases, monitoring and performance measurement of efforts to create healthy and safe work environments, and reporting the data and information provided by the relevant units to the committee chairman, the member of the Board of Directors;
· Identifying, measuring, monitoring, recording, auditing and reporting the environmental and social risks and impact dimensions of the Company's operations;
· Increased organizational resilience through continuous improvement of OHS performance, including proactive risk prevention, monthly planned safety checks, monthly management OHS walk, regulatory preventive actions, near misses, unsafe conditions and behavior, LTI.
· Sustainability reporting and ESG scoring.

Number of meetings of committees in 2023

In 2023, there were 4 Audit Committees, 5 Corporate Governance Committees, 6 Early Detection of Risk Committees, Sustainability, Environment, Occupational Health and The Security Committee held 4 meetings and the Investment Committee did not hold any meetings. The management committees include The rate of participation in the relevant committees was realized at 100% for 2023.

Policies

Click here to access the policies that regulate Aydem Renewables' activity cycle

https://yatirimciiliskileri. aydemyenilenebilir.com.tr/en/ corporate-governance/policies

General Assembly

For the 2022 Ordinary General Assembly Meeting held on March 29, 2023, please click https://yatirimciiliskileri.aydemyenilenebilir.com.tr/en/corporate-governance/general-assembly

In 2023, there was not any extraordinary general assembly meeting.

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Internal Audit and Control Activities

The main purpose of the Internal Audit function is to provide reasonable assurance that risks are appropriately identified and managed in the risk management, control and governance processes designed and implemented by Aydem Renewables management; that business processes and transactions are in compliance with policies, procedures and relevant legislation; that resources are used economically and efficiently and effectively protected within the Company's sustainability goals; and that financial, managerial and operational information is available in an accurate, reliable and timely manner. In addition, the Internal Audit function ensures that the objectives related to compliance with the ethical rules and working principles defined within the company are appropriately defined, adequate and effective fulfillment of the requirements of the law.

The Internal Audit function is an independent assurance function that reports its activities to the Audit Committee of the Aydem Renewables Board of Directors, which consists of independent members, and receives its authorization from the Board of Directors of the company through the Audit Committee. The Audit Plan, which is implemented with the annual approval of the Audit Committee and the Board of Directors, is created by risk-based categorization of the processes that include business activities that support the achievement of the company's strategic goals. The results of the audit work carried out in accordance with the Audit Plan are periodically presented to the Board of Directors, the Audit Committee and the relevant management elements. The Internal Audit Unit bases its activities on International Standards on Internal Auditing

and Internal Control Governance Frameworks and applies risk-based audit methodology. In addition, it coordinates with the activities carried out by the independent audit. The audit process includes planning and preparation, fieldwork and reporting of audit results, as well as formal audit action follow-up procedures to verify the implementation of risk mitigation actions recommended by Internal Audit and accepted by Management. Within Aydem Renewables, Energy Trade and Production Optimization Audit, Procurement Audit, SAP PM Maintenance Practices Audit, Logistics and Inventory Management Audit, Operational Technologies and Business Practices and Information Security and Cyber Security Audit were performed in accordance with the 2023 Audit Plan.

Rating Notes

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Aydem Renewables went through a rating process with 3 different credit rating agencies in 2023. The credit rating information received is given below in date order.

FITCH RATINGS (14.11.2023)
National Long Term Rating	B / (Stable)


S&P GLOBAL RATINGS (11.10.2023)
National Long Term Rating	B / (Stable)

FITCH RATINGS (18.09.2023)
National Long Term Rating	B / (Stable)


S&P GLOBAL RATINGS (11.09.2023)
National Long Term Rating	B / (Negative)


JCR EURASIA RATING (30.05.2023)
Long Term International Foreign Currency Rating	BB / (Negative)
Long Term International Local Currency Rating	BB / (Negative)
Long Term National Rating	BBB+ (tr) / (Stable)
Short Term National Rating	J2 (en) / (Stable)

Click here for Aydem Renewables' credit ratings

https://yatirimciiliskileri.aydemyenilenebilir.com.tr/en/shares-and-debt-instruments/credit-ratings

Rating Notes

Corporate Governance Rating

In the rating report dated April 7, 2023 prepared by SAHA Corporate Governance and Credit Rating Services (SAHA Rating) for the purpose of rating the level of compliance with the Corporate Governance Principles published by the Capital Markets Board (CMB), Aydem Renewables' Corporate Governance Compliance Rating Score was determined as 9.56. With the report prepared by Saha Rating, it has been revealed that our Company has achieved substantial compliance with the Corporate Governance Principles published by the Capital Markets Board (CMB). Our Company has been included in the Borsa İstanbul Corporate Governance Index (XKURY) since April 21, 2022.

Considering the results of the rating on the basis of the headings evaluated by SAHA Rating on the basis of 100 full points each, Aydem Renewables achieved 92.07 points in the Shareholders section; 98.79 points in the Public Disclosure and Transparency section, 99.24 points in the Stakeholders section and 94.18 points in the Board of Directors. Thanks to this high score, our Company has become the highest scoring company among the companies in the BIST Electricity Index, as of the date of the rating.

Click here for Aydem Renewables' corporate governance ratings https://yatirimciiliskileri. aydemyenilenebilir.com.tr/en/ corporate-governance/corporate governance-compliance-rating

Scores for Carbon Disclosure Project (CDP) Reporting

Moving towards the target of fulfilling its environmental responsibilities, our Company carries out CDP Climate Change and Water Security Reports.

Aydem Renewables' rating was confirmed as "A Leadership Level" as a result of the CDP - Carbon Disclosure Project (Carbon Disclosure Project) Climate Change Reporting in 2022. With this rating, we became the only company in Turkey to receive "A Leadership Level" in both of these categories in 2022 reporting.

As a result of the CDP - Carbon Disclosure Project (Carbon Disclosure Project) Water Security Reporting conducted by Aydem Renewables in 2023, its rating was confirmed as "A Leadership Level". "A Leadership Level" is the highest rating received in the energy sector in our country in 2023.

Our company continued to remain on the Global A List by receiving the "A Leadership Level" grade in both Climate Change Reporting and Water Security Reporting. In 2023, our Company is the only company in our country, among all sectors, to receive A Leadership Level in both Climate Change Reporting and Water Security Reporting for 2 consecutive years and to be included in the Global Leaders List (A List). At the same time, our Company is the only company in the energy sector to receive A Leadership Level in both categories in 2023.

Corporate Environmental, Social and Governance (ESG) Performance

Aydem Renewables repeated its success of being the leader of its sector in Turkey by receiving the "A1 Advanced Level" rating with 65 points in the Environmental, Social and Governance (ESG) performance ranking conducted by the independent rating agency Moody's/ Vigeo Eiris. Aydem Renewables also ranked first among 54 companies in the "Emerging Markets" world ranking. Aydem Renewables, one of the signatories of the United Nations Global Compact (UNGC) in Turkey, increased its score to 65 with an 8-point increase in the ESG performance assessment for 2021. Aydem Renewables managed to outperform 98% of the companies in the ranking, which evaluated approximately 5,000 companies worldwide.

Sustainable Governance Structure

Aydem Renewables supports its commitment to sustainability and environmentally friendly energy production with a strong sustainable governance structure. The basis of this structure is the integration of sustainability principles into all operations and strategic decisionmaking processes of the company. This governance structure of Aydem Renewables is designed in accordance with environmental, social and governance (ESG) standards and these standards guide all activities of the company. The Sustainability, Environment, Occupational Health and Safety Committee is the management body responsible for overseeing sustainability-related risks and opportunities. The governing body and key decision makers are informed about sustainability-related risks and opportunities at least six times a year through face-toface or online meetings. Based on the decisions of the Sustainability, Environment, Occupational Health and Safety Committee and the Board of Directors, targets are set in consideration of current Sustainability trends and company needs, and these targets are submitted to the Board for approval.

Aydem Renewables addresses risk management and sustainability strategies with an integrated approach and carries out an effective management process through various committees. The Early Detection of Risk Committee examines the risks faced by the company, including risks related to sustainability and climate change, in terms of their financial dimensions and their impact on employees, stakeholders, society and the environment, and ensures that these risks are managed. This committee comprehensively assesses the company's risk profile and aims to identify and manage potential risks at an early stage.

The Investment Committee considers environmental, social and governance criteria when making investment decisions. This approach enables Aydem Renewables to make the right and effective decisions in renewable energy investments and aims to ensure that each investment contributes to the fight against climate change and the company's sustainability approach. In line with the company's business model and mission, every investment in sustainable energy contributes directly to environmental sustainability targets.

Aydem Renewables adopts a comprehensive and integrated approach to sustainability and risk management at both operational and strategic levels through all committees in its governance structure, thus strengthening its leading position in the sector and its commitments in the field of sustainable energy.

Sustainability, Environment, Occupational Health and Safety Committee

Aydem Renewables' Sustainability, Environment, Occupational Health and Safety Committee contributes significantly to the development of the company's sustainability, environment and occupational health and safety (OHS) culture and meticulously fulfills its interdisciplinary duties in these areas. This Committee, which fulfills the duties and responsibilities determined within the framework of the Articles of Association and working principles, adopts a proactive approach to sustainability, occupational health and safety issues, including the company's employees and all operating facilities, and ensures development in these areas.

The Committee ensures that proactive measures are taken in these areas by developing environmental regulations and safe behavior approaches in Aydem Renewables' activities. At the same time, the Committee ensures that sustainability principles are implemented, preventive and remedial measures are taken, areas where opportunities can be created are evaluated and the Investment Committee, Early Detection of Risk Committee and the Board of Directors are informed about the results of the activities.

Sustainable Governance Structure

The Committee consists of a Board member or the General Manager, Operations Director, Maintenance and Projects Director, and HSE (Health, Safety, Environment) and Sustainability Manager. The Chairman of the Sustainability Working Group also participates in the Committee, contributing to the agenda items and recording the meeting notes. When stakeholder engagement and social impact issues are on the agenda, the Human Resources Director and Corporate Communications Manager also participate. This structure, in which a member of the Board of Directors chairs the Committee, ensures that Aydem Renewables adopts an effective and comprehensive approach in the fields of sustainability, environment and OHS and strengthens the company's activities in these areas. This approach plays a critical role in achieving the company's sustainability goals and reinforcing its social responsibility awareness.

Members of the Sustainability, Environment, Occupational Health and Safety Committee are appointed by the Board of Directors. The term of office is limited to three years and committee members whose term of office expires may be reappointed.

For the effectiveness of the Committee's work and the achievement of the company's targets in the areas of sustainability, environment and OHS, it is essential to meet quarterly. More frequent meetings may be held when deemed necessary, and these meetings may be held at the company headquarters or at another location where the committee members are present. The timing of the meetings is

planned in line with the timing of the Board of Directors meetings as much as possible.

The Aydem Renewables' Sustainability Environment, Occupational Health and Safety Committee convened four times in total in 2023. The decisions taken at these meetings had a direct impact on the company's sustainability management and were significantly reflected in Aydem's policies and operations. The decisions taken in the committee were taken into consideration and implemented in all processes of Aydem Renewables. As a result of these decisions, important steps have been taken such as revising the company's sustainability reporting structure, inclusion in the Borsa İstanbul (BIST) sustainability index and applications to various sustainability-related initiatives.

Aydem Renewables' Sustainability, Environment, Occupational Health and Safety Committee has adopted a disciplined working method to effectively manage the company's sustainability and safety practices. The Committee's meetings and decision-making processes reflect the importance the company attaches to these issues and its commitments in this area. The Committee convenes with absolute majority and takes decisions with the majority of the members present. All work performed by the Committee is documented, recorded and reported to the Board of Directors. This reporting increases the transparency and accountability of the Committee's work. The Committee immediately notifies the Board of Directors in writing of its determinations and suggestions regarding its duties and responsibilities, which ensures that

its decisions and determinations are taken into consideration by senior management.

The minutes of the Committee meetings are approved by the members and kept, which ensures that decisions and discussions are recorded. A Rapporteur is appointed to coordinate the work of the Committee and to ensure the orderly conduct of the meetings. This Rapporteur works under the Chairperson of the Committee and prepares and distributes the meeting agenda, relevant documents and decisions. This role of the Rapporteur contributes to the effective functioning of the Committee and the efficient management of the meetings. The Secretariat of the Board of Directors is responsible for the administrative organisation of the meetings, the distribution of the minutes of the meetings to the members of the Board of Directors and the storage of the decisions in the decision book.

Aydem Renewables' Sustainability, Environment, Occupational Health and Safety Committee fulfills various critical tasks for the company to achieve its sustainability, environment and OHS goals. These tasks are as follows:

1. Understanding the Sustainability Needs of Stakeholders:

Understanding the sustainability needs of stakeholders and carrying out activities accordingly.

2. Sustainability Working Group Review: To review the work of the Sustainability Working Group, playing a guiding role in sustainability-related policies, activities and processes.

3. Managing Sustainability Priorities: Managing sustainability priorities, ensuring integration with strategy and tracking targets.
4. Tracking Critical Success Factors: Tracking activities related to critical success factors.
5. Relations with Internal and External Stakeholders: Acting as a development center for different stakeholders and managing relationships with internal and external stakeholders.
6. Support and Analysis of Environmental, Social, Governance (ESG) Principles: Support on ESG principles and assessment of risk and opportunity analysis.
7. Reviewing Risks and Providing Input: Reviewing risks around sustainability and providing input to the Risk Committee.
8. Monitoring OHS Targets and Performance: Monitoring OHS targets and performance by taking into account feedback from the OHS Board and Life Safety Subcommittee and field personnel.
9. Improvement of Environmental Activities: Planning and decision making to realize the recommendations made by the Working Group through continuous improvement and development of environmental activities.
10. Assessment of Performance and KPI Implementation: Assessment of environmental and social performance, energy consumption, waste management, as well as KPI implementation and related issues.
11. Dissemination of OHS Culture: Dissemination of OHS culture and evaluation of planned management walks and audit results.
12. Monitoring and Reporting of Training Activities: Monitoring and reporting of training activities on OHS, environmental and social issues.
13. Prevention of Work Accidents and Occupational Diseases: Prevention of occupational accidents and occupational diseases, monitoring and performance measurement of efforts to create healthy and safe work environments.
14. Proactive Risk Prevention and OHS Performance Improvement: Continuous improvement of OHS performance, including proactive risk prevention, monthly planned safety checks, monthly management OHS walk, regulatory preventive actions, near misses, unsafe conditions and behavior, LTI.
15. Sustainability Report and ESG Scoring: Preparation and presentation of sustainability report and ESG scoring.

Aydem Renewables' Sustainability, Environment, Occupational Health and Safety Committee receives all necessary resources and support from the Board of Directors in order to fulfill its duties effectively. This support enables the Committee to effectively develop and implement policies and practices in the fields of sustainability, environment, occupational health and safety. The Committee may invite company executives and consultants to its meetings and benefit from their opinions and suggestions when

deemed necessary in its work. This enables the Committee to make more comprehensive and informed decisions by taking into account the knowledge and experience of various departments and experts within the company. The Committee receives and benefits from the opinions of experts and consultants. This approach enables the Committee to gain in-depth understanding and expertise on the complex and technical issues it faces.

In 2023, sub-working groups established within Aydem Renewables related to sustainability worked on various projects to help the company achieve its sustainability goals. These projects include the following:

· Biodiversity Studies Sub-working groups have taken an active role in projects for the protection and enhancement of biodiversity in the context of environmental issues. These projects include topics such as reducing environmental impact and protecting natural habitats.
· Workplace Practices Projects carried out by human resources are focused on improving the company's sustainability practices in the workplace. These projects include efforts to improve employee well-being and sustainable practices in the workplace.
· Supplier Management and Sustainable Supply Chain Efforts In relation to procurement, the Company has taken an active role in supplier management and sustainable supply chain efforts. These efforts aim to integrate and improve sustainability standards and practices throughout the company's supply chain.

Sustainable Governance Structure

The active participation of subworking groups in these projects ensures that Aydem Renewables progresses effectively towards achieving its sustainability goals and continuously improves its performance in these areas. As part of Aydem Renewables' overall sustainability strategy, these efforts both strengthen the company's business model and play an important role in adding value to all stakeholders.

Integrated Management Systems

Aydem Renewables is a leader in the renewable energy sector and implements Integrated Management Systems (ISO 9001:2015, ISO 45001:2018, ISO 14001:2015, ISO 50001:2018) in order to use domestic and renewable resources in the most efficient way in line with its vision and mission.

Aydem Renewables fulfills the following commitments in this context:

1. Maintaining Integrated Management Systems To ensure that these systems are maintained in the most effective manner.
2. Process Management with Risk Based Thinking Managing processes with risk based thinking.
3. Meeting the Expectations of Related Parties To carry out studies to meet the expectations of related parties.
4. Being an Environmentally Respectful and Protective Organization Being respectful to the environment and sensitive to environmental protection.
5. Effective Use of Resources To ensure the effective use of resources.
6. Waste Reduction and Recovery To reduce waste, ensure recovery and prevent pollution.
7. Zero Work Accidents and Occupational Diseases Principle To act with the principle of zero work accidents and zero occupational diseases.
8. To give utmost importance to the health, safety and security of contractors, suppliers and employees.
9. Encouraging Multi-Directional Communication Seeking employees' ideas and ensuring their participation.
10. Continuous Improvement To achieve continuous improvement in quality, environment, occupational health and safety and energy efficiency performance.
11. Environmentally Friendly and Energy Efficient Products and Services Prefer environmentally friendly and energy efficient products and services.
12. Ensuring the Continuity of the Integrated Management System To provide resources to ensure the continuity of the Integrated Management System.
13. To be a learning, continuously developing and sharing organization by making training activities continuous.
14. Combating Climate Change Providing the necessary resources for the protection of biodiversity and natural ecosystem environments in the areas of activity in the fight against climate change.
15. Implement and Develop Integrated Management Systems Implement, develop and continuously improve the effectiveness of Integrated Management Systems.
16. Complying with Legal Legislation, Standards and Rules Complying with the legal legislation, standards, directives and rules of the organizations to which it is affiliated within the scope of its fields of activity.

Sustainability Strategy

Aydem Renewables plays a pioneering role in Turkey's renewable energy sector and has a vision that dedicates its 27 years of experience to creating value not only for the company, but also for all stakeholders and future generations. The company is aware that the key to long-term success is to move forward in a structure that respects the environment, is sensitive to its employees and society, and considers the needs of future generations. Accordingly, Aydem Renewables not only exceeds its own targets, but also assumes the responsibility of pioneering the clean energy transformation for all its stakeholders and its country.

The company's corporate strategy is integrated with a sustainability perspective and this approach is supported by a sustainable governance model and environmental and social performance targets. This approach of Aydem Renewables puts the sustainability of the needs of future generations at the center.

Aydem Renewables considers sustainability-related risks and opportunities as a central factor in strategic decision-making processes and this approach supports the company's long-term success and sustainable growth.

While continuously identifying and assessing environmental, social and governance (ESG) risks and opportunities, the Company takes into account important issues such as climate change, resource utilization, energy efficiency and waste management, as well as sustainability-related legal regulations and market trends. These risks and opportunities are integrated into Aydem Renewables' strategic planning and goal setting processes. Thus, they are effective in a wide range of areas from investment decisions to operational activities, from the development of innovative projects to customer and supplier relations.

The assessment of sustainabilityrelated risks and opportunities plays an important role in determining Aydem Renewables' long-term sustainability goals and developing the strategies and action plans necessary to achieve these goals. The Company views these opportunities as opportunities for innovative and sustainable growth and demonstrates a proactive approach in areas such as developing new products and services, increasing energy efficiency and investing in renewable energy sources. Aydem Renewables takes into account the expectations and concerns of its stakeholders and works in effective communication and cooperation with them. This approach strengthens the company's market position and improves its relations with stakeholders.

Sustainability Strategy

Aydem Renewables adopts a strategic approach to sustainabilityrelated risks and continuously assesses the resilience of its business model. This approach is based on the long-term success and sustainable growth of the company. Aydem Renewables' business model is shaped according to sustainability principles and designed to quickly adapt to market changes and environmental regulations. The company focuses on continuous improvement and developing innovative solutions against sustainability-related risks. These solutions are manifested in adopting technological innovations, optimizing business processes and offering sustainable products and services.

As Turkey's largest company generating energy from 100% renewable sources, Aydem Renewables aims to continuously move forward for the country, the environment, employees and stakeholders. Acting with this sense of responsibility, the company continues to generate energy for a sustainable future by saying "always further". This vision enables the company to adopt and act in line with sustainability principles in all its activities, while at the same time reinforcing its awareness of social and environmental responsibility. This approach of Aydem Renewables constitutes a fundamental building block to contribute to a sustainable future and play a leading role in the energy sector.

As an inclusive employer, Aydem Renewables attaches great importance to providing its employees with a work environment based on fundamental rights and freedoms, equal opportunities and diversity. The company advocates the presence of women in all areas and levels of economic life and is proud to be a signatory of the United Nations Women's Empowerment Principles (WEPs).

With the Equal Life initiative, Aydem aims to realize an internal transformation on gender equality and spread this transformation to all its stakeholders. In addition, Aydem believes that domestic violence and abuse is an equality issue and a violation of human rights and adopts a zero-tolerance approach to violence. In this context, on November 25th, the International Day for the Elimination of Violence against Women, the Company published the Procedure for Combating Domestic Violence. This procedure aims to provide a work environment where employees who have been subjected to violence can speak up in confidence and confidentiality and receive support and assistance.

Aydem Renewables, acting with the understanding of "We generate and work for society" and "We stand by sustainable development", acts consciously against the risk of climate change to ensure that current and future generations benefit fairly from the opportunities brought by development. By increasing social awareness, the Company focuses on investing in society and continuously improving itself.

Aydem Renewables transparently shares its commitment to the 10 principles of the United Nations Global Compact at the global level with its "Progress Report" every year. It advances its sustainability approach and develops its commitments with the principle of "always further". The Company sets out its principles and makes commitments in many stages of its business model, from investment decisions to operations, from governance structure to decisionmaking mechanism. This approach plays an important role in achieving the Company's sustainability goals and creating value for society.

Risk Management and Practices

Messages from Management, Risks and Opportunities

Aydem Renewables uses internationally recognized risk management principles in its risk management processes and fully complies with the Capital Markets Board's Corporate Governance Principles regulation. Risk management is integrated into the company's operations and strategic planning, and a reliable risk management mechanism is applied in all investment decisions and processes. All risks and opportunities are comprehensively assessed. Risk awareness, which has become a part of the company culture, ensures that strategic decisions and operational activities remain within the limits of risk appetite, and all risk factors that may adversely affect the company and its stakeholders, including financial performance and reputation, are effectively managed. Risk management policies and systems are regularly reviewed to identify and analyze the risks that may be encountered, to set appropriate risk limits, and to monitor risks according to key risk indicators.

The Board of Directors is responsible for establishing plans and policies regarding risk management activities at Aydem Renewables.

The Board of Directors has appointed the Early Detection of Risk Committee to manage risks effectively. The Committee consists of non-executive members of the Board of Directors and is chaired by an independent member of the Board of Directors.

The Early Detection of Risk Committee convenes periodically at least six times a year and more frequently if needed. Aydem Renewables Risk Management Policy has been approved by the Aydem Renewables Board of Directors and explains Aydem Renewables' risk management strategy, general principles and management principles regarding the risk management framework. The Company's risk management manager or legal and compliance manager is responsible for the creation of supporting documentation and implementation of risk management activities in parallel with the Risk Management plan and policies. In addition, risk management has been fully integrated into Aydem Renewables' daily operations and strategic planning in order to make faster decisions and take quick action in volatile and competitive market conditions.

Aydem Renewables works with the belief that protecting its assets and values in the long term, ensuring sustainable financial performance, competitiveness and growth, and protecting the interests of all stakeholders can be achieved through effective management of financial and non-financial risks. In addition to the financial impact of risks, the reputational impact, the impact before supervisory and regulatory bodies, and the impact on employees are also evaluated in a way to cover the value chain. Aydem Renewables, which plays a leading role in renewable energy production in the country, actively benefits from legal regulations and incentives that support clean energy, and the opportunities offered by these regulations are utilized without losing time.

Exposed risks are measured and monitored with reference to methods in accordance with international standards and in compliance with legal regulations. At Aydem Renewables, policies regarding risk management activities are established through the Early Detection of Risk Committee and risks are managed effectively. In the risk management process, a strategy consisting of eight components is followed. Within the scope of this strategy, existing and potential risks that may affect the achievement of the Company's objectives are identified, assessed and monitored in line with corporate risk management systems. In the light of the studies carried out, principles and actions for managing the relevant risks are determined in accordance with the Company's risk-taking profiles, and these principles are taken into account when making decisions. While managing the processes, information is continuously shared with the relevant units and Committees and the Company works in an integrated manner.

Factors such as climate change, depletion of natural resources, natural disasters with changing frequency and impact, changing economic balances, technological innovations, digitalization are considered as risks that may affect Aydem Renewables' business processes and stress tests are applied under various scenarios. In addition, the effectiveness of business continuity activities is regularly reviewed. At Aydem Renewables, all risk management activities are recorded.

In this way, risk management has been fully integrated into Aydem Renewables' daily operations and strategic planning in order to make faster and more accurate decisions in volatile and competitive market conditions.

Early Detection of Risk Committee

The Early Detection of Risk Committee consists of at least two members. If the Early Detection of Risk Committee consists of two members, both of them, and if there are more than two members, the majority of the members are elected from the nonexecutive members of the Board of Directors. The chairman of the Committee is elected from among the independent members of the Board of Directors.

The members of the Early Detection of Risk Committee are selected from among the non-executive members, where possible. Risk may be assigned to the Risk Committee.

The Early Detection of Risk Committee convenes at least six times a year, as often as deemed necessary for the effectiveness of its activities, at the Company headquarters or at another location where the committee members are present. The timing of the Early Detection of Risk Committee meetings shall be consistent with the timing of the Board of Directors meetings as much as possible. The Early Detection of Risk Committee convenes with the presence of the absolute majority of its members and takes decisions with the majority of the members present at the meeting. The Early Detection of Risk Committee puts all its activities in writing, keeps a record of them and reports to the Board of Directors, including information on the results of the activities and meetings of the Early Detection of Risk Committee. The Risk Committee immediately notifies the Board of Directors in writing of the findings and suggestions related to its duties and responsibilities.

Minutes of the meetings of the Early Detection of Risk Committee are approved by the members of the Early Detection of Risk Committee and kept with the decisions of the Committee.

The Company's manager responsible for risk management or legal and compliance manager or a member appointed by the committee shall assume the responsibility of Rapporteur reporting to the Committee Chairman.

The Rapporteur submits the meeting agenda and relevant documents to the Committee members before the meeting. He/she ensures the attendance of the persons requested by the Chairman to attend the meeting. He/she writes the minutes and decisions of the meeting and ensures their distribution to the relevant parties.

The secretariat of the Board of Directors is responsible for the administrative organization of the meetings, the distribution of the minutes of the meetings to the members of the Board of Directors and the storage of the decisions in the decision book.

The Early Detection of Risk Committee fulfills the following duties, including but not limited to the following;

· Identifying and periodically assessing existing and potential operational, strategic, compliance, financial and other risks and preparing recommendations for taking relevant actions in connection with these risks,
· Establishment of risk management systems and establishment of organizational infrastructures related to risk management within the Company and preparation of proposals for the development of related systems to increase functionality,
· Suggesting solutions to risks to the Board of Directors and the Audit Committee,
· Identifying, evaluating and monitoring the existing and potential risk factors that may affect the achievement of the Company's objectives within the framework of the corporate risk management systematic and ensuring that the principles for managing the relevant risks in accordance with the Company's risk profile are determined and used in decision-making mechanisms,
· Establishing a company-wide corporate risk management approach, ensuring the establishment and maintenance of an effective risk management framework,
· Carrying out studies to determine the risk policies and the relevant standards and methodologies used in managing the risks within the Company and submitting them to the Board of Directors for approval,
· Carrying out studies to prepare policies that define the Company's risk appetite and are in line with the strategic plan and targets approved by the Board of Directors, and submitting these studies to the Board of Directors for approval,
· Establishing the indicators within the scope of risk appetite and proposals regarding their levels, submitting them to the Board of Directors for approval, monitoring the indicators and presenting the results, evaluations and recommendations to the Board of Directors when necessary,
· Ensuring that the Company's strategies and risk appetite are effectively implemented throughout the Company,
· Adequately informing the members of the Board of Directors about the Company's risk-creating activities, including strategic management, capital and resource management, risk profile, risk appetite, business activities, financial performance and reputation, and presenting recommendations to the Board of Directors in this context,
· Ensuring that internal processes are maintained, including stress testing where appropriate, to ensure that capital and liquidity levels and asset-liability structure are in line with the normal and stressed conditions of the company,
· Evaluating and proposing risk management strategies for the risks to be accepted and managed, shared or completely eliminated in the Company for the risks assessed according to probability and impact calculations,
· Providing an opinion to the Board of Directors to establish internal control systems, including risk management and information systems and processes that can minimize the effects of risks that may affect the Company's stakeholders, particularly shareholders,
· Ensuring the integration of risk management and internal control systems into the Company's corporate structure and business processes,
· Evaluating and approving the risk studies carried out within the Company, informing the Board of Directors when necessary and presenting suggestions,
· Evaluate the development and maintenance of management reporting to ensure that information is timely, accurate and relevant,
· Monitoring the latest status of audit matters and findings, evaluating the effectiveness and efficiency of the actions taken,
· Oversight of activities related to business continuity management,
· Reviewing the risk management systems at least once a year and overseeing that the practices of the relevant departments that assume responsibility for the management of risks are carried out in accordance with the decisions of the Early Detection of Risk Committee,
· Early detection of technical insolvency and alerting the Board of Directors and developing proposals on measures to be taken,
· In the quarterly report to be submitted to the Board of Directors, assessing the situation, pointing out the dangers, if any, and showing the remedies in this regard, and sharing this report with the independent auditor, the Audit Committee and the Internal Audit Unit,
· Preparation and submission to the Board of Directors of an annual evaluation report to form the basis for the Board of Directors' assessment of the Early Detection of Risk Committee members, frequency of meetings, working principles including the activities carried out and the effectiveness of the committee, which will be included in the annual report.

All kinds of resources and support required for the Early Detection of Risk Committee to fulfill its duties are provided by the Board of Directors. The Early Detection of Risk Committee may invite any manager it deems necessary to its meetings and receive their opinions. The Early Detection of Risk Committee may benefit from the opinions of experts when necessary. The Early Detection of Risk Committee acts under its own authority and responsibility, and submits a quarterly report to the Board of Directors containing its assessment of the situation, recommendations and suggestions. These reports submitted to the Board of Directors are also communicated to the independent auditor. The Board of Directors is responsible for the final decision.

ESRS Risk Categories

All situations that may jeopardize the existence, development and continuity of the Company, prevent the realization of strategic, operational and financial targets and negatively change the Company's image in the eyes of all stakeholders are defined as risks and effective measures are taken for each risk. Within this framework, necessary monitoring is carried out based on the financial and non-financial risk definitions and actions are taken to eliminate these risks. Risks under six headings deployed under integrated risk management are categorized by taking into account their causes, events and consequences. Under the management of the Sustainability, Environment, Occupational Health and Safety Committee, climate change, depletion of natural resources, legal changes that have occurred or will occur, natural disasters, changing economic balances, new markets, technological innovations, digitalization and all other risks related to sustainability are classified and managed within six main risk categories. In addition to the Risk Management Methodologies applied for these risks, special studies are conducted on climate change and sustainability issues, this monitoring mechanism is taken to the next level and actions are determined to eliminate risks.

The six main types of risks faced by Aydem Renewables and the potential impacts of these risks on the company can be explained in detail as follows:

1. Strategic Risks: This risk type includes factors that may affect Aydem Renewables' longterm targets and sustainable growth plans. Strategic risks may arise from factors such as changes in market trends, technological innovations, strategies of competitors or transformations in consumer preferences. The Company manages these risks through market research, competitive analysis and strategic planning. Aydem Renewables conducts market research, competitive analysis and strategic planning to manage these risks. These processes include continuously following market and technological developments, analyzing the strategies of competitors and carefully monitoring the transformation of consumer preferences. Through these methods, the company is able to identify strategic risks, develop proactive approaches to them and shape sustainable growth strategies in line with its long-term targets.

2. Operational Risks: Errors in

business processes, technology management or human resources policies fall under this risk category. Operational risks may include equipment failures, productivity losses, improper data management or human errors. Aydem Renewables manages these risks through effective business processes, regular training programs and a strong internal control system. In order to manage operational risks, structural, hydraulic, geological and topographical controls are regularly carried out at power plants, action plans are prepared and implemented. Wind data is continuously monitored and analyzed by technical teams. In order to achieve the target of sustainable financial success, regular maintenance, effective efficiency-enhancing retrofitting and rehabilitation works, and investments, the availability ratio, which is an important indicator of energy generation efficiency and represents the ratio of the time the power plant is ready for energy generation to the maximum time it can theoretically generate energy, is well above the sector average.

3. Employment/Safety/Business Continuity and Environmental

Risks: This category covers issues such as occupational accidents, employee health issues, workforce stability and compliance with environmental regulations. In order to manage these risks, Aydem Renewables takes various measures to provide a safe and healthy working environment, increase employee satisfaction and ensure full compliance with environmental regulations. These measures include regular health and safety trainings, ergonomics and health-promoting practices in the workplace, mechanisms where employees can voice their health and safety concerns, continuous monitoring and evaluation for compliance with environmental regulations, and the use of technologies to reduce environmental impacts.

4. Regulatory Risks: This category includes risks associated with changes in the regulatory framework and new legislation in the energy sector. These risks may arise in the form of new environmental standards, emission limitations or licensing requirements. Aydem Renewables manages these risks by closely following legal and regulatory developments and constantly updating compliance strategies.
5. Market Risks: Risks arising from the volatility of energy prices and changes in consumer behavior. These risks may be related to demand fluctuations or price changes. Aydem Renewables uses various financial instruments and demand management strategies to mitigate market risks.

6. Credit Risks: Includes risks related to access to financing, interest rates and debt management. These risks can affect the company's financial stability and borrowing costs. Aydem Renewables addresses these risks through careful financial planning, debt structuring and interest rate risk management strategies.

Risky issues that Aydem Renewables may face and the relationship of these risks with the six main risk types identified by the company are shown in the table below. This table includes various risk types such as strategic, operational, employment/safety/ environmental, regulatory, market and credit risks. Each type of risk has been assessed in terms of its impact on Aydem Renewables' business strategies, operational processes and financial performance. In addition, the possible impacts of risks on the company and how these impacts can be managed are also discussed in the table. This analysis provides a basis for determining and implementing the company's risk management strategy.

The risky issues that Aydem Renewables may face and the relationship of these risks with the company's six main risk types are detailed in the table below. Each risk type is assessed and managed in a wide range of areas, from the company's long-term targets to daily operations, from employee health and safety to environmental compliance, from market fluctuations to financial accessibility.

The importance of each type of risk in Aydem Renewables' strategic decision-making processes and operational activities is measured by the measures and management strategies taken and evaluated as part of the company's overall risk management strategy. This comprehensive risk management approach aims to ensure that the company is resilient and flexible against the risks it may face.

Aydem Renewables analyzes the financial impacts of financial risks and sustainability-related risks with an integrated approach and this process is at the core of the company's overall risk management strategy. Financial risks can arise from factors such as market fluctuations, credit risks, changes in interest rates and exchange rates, and these risks can have a direct impact on the company's financial health and cash flows. Sustainability-related risks can arise from environmental regulations, climate change, resource scarcity and societal expectations, and have the potential to affect the company's financial performance and reputation in the long term.

Assessment of Risky Issues that Aydem Renewables may face within the Scope of 6 Main Risk Categories

Risky Issues for Aydem Renewables	Strategic Risks (Risks that may affect long-term targets and sustainable growth plans.)	Operational Risks (Risks arising from errors in the management of business processes, technologies or human resources.)
The operation, maintenance and refurbishment of power plants carries significant risks that can lead to unexpected power outages, reduced efficiency and unexpected capital expenditures.	Unexpected capital expenditures can also involve strategic risks, as they can affect the company's long-term strategic planning.	Activities such as the operation, maintenance and refurbishment of power plants and associated unexpected outages or efficiency problems are considered operational risks.
The failure or damage to one of the Company's major power plants could adversely affect the Company's operations.	A major power plant outage could have an impact on the company's long-term gos and strategies.	Plant outages or damages are directly related to operational processes.
The Company is subject to certain risks associated with obtaining and maintaining the equipment and services it needs for its current and future operations.	The dependence of long-term operational plans on this equipment and services is associated with strategic risks.	The provision and maintenance of equipment and services involves operational risks as part of business processes.
The Company may not be able to maintain its relationships with its suppliers.	Since supply chain management plays a key role in strategic planning, failure to maintain relationships involves strategic risks.	Sustainability of supplier relations is part of the operational functioning.
The Company's planned acquisitions may not be completed or, if completed, may not be as beneficial as expected. Acquisitions may cause the Company's management to lose focus and may increase the Company's debt to equity ratio. The failure of such acquisitions may reduce the Company's profitability.	Risks related to strategic objectives include the risk that acquisitions fail to deliver the planned benefits and distract management focus.	Failed acquisitions can have a negative impact on operational processes and profitability.
Failure of the Company to comply with the transfer of operating rights agreement for Adıgüzel HPP and Kemer HPP in any way may cause the competent authorities to take measures or cancel the contractual operating rights.	Canceling contracts could affect the company's long-term strategic plans.	Revocation of operating rights may have a direct impact on operational activities.
Any damage to the natural environment caused by the construction or operation of the Company's power plants may result in increased costs due to legal action, compliance studies and/or cessation of production activities at the power plants.		The cessation of production activities can have a direct impact on operational processes and the cost structure.

Employment/Safety/Business Continuity and Environmental Risks (Risks of occupational accidents, employee health issues, workforce stability and compliance with environmental regulations.)

Regulatory Risks (Risks related to the change of the regulatory framework in the energy sector and risks related to new laws or regulations.)

Market Risks (Risks arising from volatility in energy prices and changes in consumer behavior)

Credit Risks (Risks related to access to financing, interest rates and debt management)

In the event that capital expenditures are higher than expected, credit risks are also related to this situation, as the need for financing increases and this has an impact on the company's credit profile.

Any damage that may occur during the operation of the power plants includes risks related to safety and business continuity.

The dependence of the required equipment and services on market conditions implies that these risks may also be related to market risks.

Relationships with suppliers are dependent on market conditions and fluctuations in the supplier market, which therefore entails market risks.

An increase in the debt-toequity ratio and the financial burden of acquisitions can affect a company's credit profile.

This includes regulatory risks related to contractual non-compliance, legal obligations and regulatory authorities.

Damage to the natural environment is directly related to environmental risks.

Regulatory risks include legal actions and compliance requirements arising from environmental damage.

Assessment of Risky Issues that Aydem Renewables may face within the Scope of 6 Main Risk Categories

Risky Issues for Aydem Renewables	Strategic Risks (Risks that may affect long-term targets and sustainable growth plans.)	Operational Risks (Risks arising from errors in the management of business processes, technologies or human resources.)
Operations carried out during electricity generation activities can be hazardous and can lead to accidents. In certain cases, it may cause injury to people or material damage. This may cause significant interruptions in the Company's operations and/or expose the Company to judicial and administrative sanctions.		Operational risks include interruptions in business activities as a result of potential accidents.
The Company's existing insurance policies may not be sufficient to cover all potential losses. It is not possible to obtain insurance to cover all risks that may arise in the event of an accident or damage or in any other way.	Inadequate comprehensive risk management strategy and insurance planning can also involve long-term strategic risks.	The financial impact of unexpected financial liabilities and losses can increase the company's credit risks.
The Company's operations are heavily dependent on its information technology ("IT") infrastructure. Delays, interruptions in the Company's IT systems and networks or cyber-attacks on these systems and networks may adversely affect the Company's operations.	Strategic risks include cyber security threats and their impact on the company's overall operations.	Delays and outages in IT infrastructure are directly related to operational risks.
The Company may be exposed to risks due to possible unethical behavior or unlawful conduct of its employees, suppliers, agents or other third parties.	Strategic risks are also associated with this situation, as the company's reputation and brand value can be negatively affected by such behavior.	Unethical or unlawful behavior includes operational risks related to business processes and internal controls.
In addition to other related parties, the Company has entered into and will continue to enter into related party transactions with its indirect controlling shareholder.	Related party transactions can affect the company's strategic relationships and reputation.	Transactions with related parties may create risks of operational complexity and conflicts of interest.
The loss of key personnel or the inability to recruit key personnel and qualified employees may limit the Company's growth and adversely affect its operations.	It is associated with strategic risks as it may affect the company's growth and development strategies.	Personnel changes can also involve operational risks, as managing the workforce is part of the company's day to-day operations.
Union representation of workers at the Company's power plants may increase the Company's employment-related costs. An increase in the number of work slowdowns may adversely affect the Company's operations.	The management of labor-related processes and union relations can affect the company's long-term business strategies.	Work slowdowns can disrupt operational processes.

Employment/Safety/Business Continuity and Environmental Risks (Risks of occupational accidents, employee health issues, workforce stability and compliance with environmental regulations.)	Regulatory Risks (Risks related to the change of the regulatory framework in the energy sector and risks related to new laws or regulations.)	Credit Risks (Risks related to access to financing, interest rates and debt management)
Accidents that may occur during operations and their impact on human health fall into this category.	Accidents that can result in judicial and administrative sanctions also bring risks related to regulatory compliance.
		The financial impact of unexpected financial liabilities and losses can increase the company's credit risks.
		Failure of IT systems can also affect credit risks as it can have an impact on financial transactions and reporting.

Unlawful behavior is associated with regulatory risks as it affects legal compliance issues.

Related party transactions can have an impact on financial terms and credit terms.

This category includes the loss of key personnel and the inability to secure a qualified workforce.

Trade union representation and work slowdowns can affect labor costs and job security.

Assessment of Risky Issues that Aydem Renewables may face within the Scope of 6 Main Risk Categories

Risky Issues for Aydem Renewables	Strategic Risks (Risks that may affect long-term targets and sustainable growth plans.)	Operational Risks (Risks arising from errors in the management of business processes, technologies or human resources.)
The Company may be adversely affected by changes in tax legislation or practice, increases in tax rates or tax audits.	A company's financial planning and profitability targets can be strategically affected by increases in tax costs.	Potential problems arising from tax audits may affect operational activities.
The Company is jointly and severally liable for the actions of its subcontractors in violation of the relevant laws and regulations. As a result of the activities of subcontractors, the Company's liability may arise or the Company may be subject to legal proceedings.	The possibility of legal proceedings may affect the company's overall strategic position.	Risks related to the activities of subcontractors may affect the operational processes of the company.
The Company's indebtedness and financial liabilities may adversely affect the Company's operations, financial position and results of operations.	The company's financial soundness and debt management strategy influence overall business strategies and long-term financial planning.	The management of financial liabilities is part of operational processes and these liabilities can affect operational performance.
The Company is required to comply with certain covenants under its Eurobond obligations.		The fulfillment of financial commitments involves operational risks as they can affect the day-to-day operational activities of the company.
The inability to obtain credit or capital due to volatility in the credit and capital markets or other factors could make it more difficult for the Company to develop its projects or finance acquisitions.	Accessibility of financing is a factor that can affect the company's overall growth and acquisition strategies.
Disruptions caused by widespread public health concerns, including the COVID-19 pandemic, could adversely affect the Company's business, results of operations, prospects or financial condition.	Long-term planning and future prospects may be at strategic risk due to uncertain situations such as pandemics.	Global health crises such as pandemics can lead to operational disruptions and business continuity issues.
Electricity generation from renewable energy sources relies heavily on favorable meteorological conditions (including the supply of appropriate amounts of water and wind).		Managing production processes that depend on favorable meteorological conditions involves operational risks.
Demand for electricity may fall.	Long-term revenue projections and growth targets may be affected by changes in demand.	Reduced demand can impact operational planning and capacity utilization.

Employment/Safety/Business Continuity and Environmental Risks (Risks of occupational accidents, employee health issues, workforce stability and compliance with environmental regulations.)	Regulatory Risks (Risks related to the change of the regulatory framework in the energy sector and risks related to new laws or regulations.)	Market Risks (Risks arising from volatility in energy prices and changes in consumer behavior)	Credit Risks (Risks related to access to financing, interest rates and debt management)
	Changes in tax legislation and increases in tax rates point directly to regulatory risks.
	Responsibilities arising from illegal activities of subcontractors constitute regulatory risks.
			The company's debt burden and financial obligations are directly related to credit risks.
	Compliance with Eurobond covenants is directly related to regulatory and contractual requirements and therefore entails regulatory risks.		Eurobond obligations and related commitments are associated with credit risks, including the company's financing costs and debt management.
		Changes in market conditions can affect the ability to raise finance and the cost of projects.	Fluctuations in credit and capital markets directly affect credit access and financial conditions.
Public health concerns include the health of workers and safety procedures in the workplace.
Uncertainties in the availability of natural resources such as water and wind can increase environmental risk factors.		The variability of meteorological conditions can affect supply and demand in the energy market, which involves market risks.
		A reduction in electricity demand is an indicator of market demand and energy sales and therefore involves market risks.

Assessment of Risky Issues that Aydem Renewables may face within the Scope of 6 Main Risk Categories

Risky Issues for Aydem Renewables	Strategic Risks (Risks that may affect long-term targets and sustainable growth plans.)	Operational Risks (Risks arising from errors in the management of business processes, technologies or human resources.)
The Company's operations are dependent on the signing and maintaining the validity of the licenses, permits and regulations required for the operation of its power plants and mandatory agreements with public institutions.	Long-term operational strategies depend on existing and potential legislation and regulatory agreements.	The management and maintenance of permits and regulations are important for the continuity of operational activities.
Electricity market prices and forecast prices may vary significantly.	The company's long-term financial performance and strategic planning may be affected by uncertainties in market prices.	Price fluctuations can affect operational planning and budgeting.
Reduced or discontinued government support for renewable energy or other changes in government energy policy and energy legislation could adversely affect the Company's future investment and growth plans.	Reduced government support or changes in legislation could affect the company's long-term strategies and growth potential.
The Company is subject to potential currency risk for Completion Payments under the FIT (YEKDEM) incentive and the Company's currency risk will increase when the FIT (YEKDEM) period ends for the Company's power plants.	The end of the FIT (YEKDEM) period and its impact on financial planning can be considered among the company's strategic risks.
The Company may face significant uncertainties related to the development of new power plants. New projects may not be efficient, may never be completed or may not perform as expected.	The uncertainties and performance of new projects can affect the company's long-term strategic plans.	Challenges in project completion and performance issues are associated with operational risks.
Operational difficulties in connecting to the transmission and distribution grid may adversely affect the Company's ability to sell the electricity it generates.	Such challenges affecting the ability to sell electricity could undermine the company's overall strategic objectives.	Difficulties in connecting to the transmission and distribution grid are directly related to operational risks.
The Company is subject to collection risk arising from electricity sales.		The management of collection processes is part of operational activities and therefore contributes to operational risks.

Regulatory Risks (Risks related to the change of the regulatory framework in the energy sector and risks related to new laws or regulations.)	Market Risks (Risks arising from volatility in energy prices and changes in consumer behavior)	Credit Risks (Risks related to access to financing, interest rates and debt management)
Risks related to licenses, permits and regulations and mandatory agreements, legislation and legal compliance.
	The variability of electricity market prices and forecasts falls under the category of market risks.
Changes in energy policies and legislation are directly related to legal compliance and regulatory risks.	Changes in government support may have an impact on market conditions and the company's revenue expectations.
	The impact of FIT (YEKDEM) incentive system and exchange rate changes on the company's revenues is related to market risks.	The financial impact of currency risk is important for the company's financial soundness and credit risks.
	Market risks can include new projects failing to meet market expectations or efficiency issues.
	These challenges could affect the company's electricity sales and its position in the market.
	The general liquidity situation in the market and the payment capacity of customers may affect market risks, which may increase collection risk.	Collection risk includes the risk that customers do not pay their debts on time and in full, which is directly related to credit risks.

Risk Management Strategy

Aydem Renewables implements the risk management process with a comprehensive and strategic approach. The company's risk management strategy consists of an eight-step process and each step of this process is meticulously carried out.

Aydem Renewables 8-Stage Risk Management Strategy

The first stage is governance, and the company's risk management policies and procedures are determined within this framework. In the second stage, objectives are clearly defined so that risk management activities are aligned with the company's overall objectives.

The third stage is case detection, which involves the proactive identification of potential risks. In the fourth stage, risk assessment, the magnitude and likelihood of the identified risks are assessed and prioritized. This stage is critical to understanding the potential impact of risks on the company.

In the fifth stage, action is taken against risks. Taking effective action involves developing and implementing effective risk mitigation strategies and response plans. The sixth stage, control activities, involves regular audits and assessments to monitor the effectiveness of risk management strategies and ensure continuous improvement.

This systematic risk management approach of Aydem Renewables supports the company's sustainable growth and operational success. This strategic process enables the company to effectively manage the risks that the company faces or may face, minimize the potential negative impact of these risks on company targets and maintain its competitive advantage. Aydem Renewables continuously improves its risk management strategy and focuses on adopting the best practices in the sector in this field.

The seventh stage, information and communication, plays a central role in Aydem Renewables' risk management process. This stage involves sharing accurate and timely information related to risk management among all relevant parties, thus supporting informed decision-making processes. Establishing an open, transparent and two-way communication channel within and outside the company is a critical factor in the success of risk management practices. Dissemination of the company's risk management policies, procedures and risk awareness among all employees is an important part of this phase.

The eighth stage, risk monitoring, involves continuously reviewing the effectiveness of Aydem Renewables' risk management processes and making necessary adjustments. This stage involves regular monitoring, evaluation and reporting of risks and risk management activities. This continuous monitoring enables the company to respond quickly and effectively to risks, update risk management strategies and implement continuous improvement processes.

Risk Assessment Structure

Aydem Renewables conducts risk assessment processes with a rigorous methodology and places it at the center of its risk management strategy. The company's risk assessment process starts with the identification of key risks and includes the classification of these risks as acceptable or unacceptable.

Identified risks are defined as potential factors that may affect the company's objectives and operational processes, and each of these risks is evaluated in detail. Acceptable risks are risks that are considered manageable within Aydem Renewables' operational strategies and can be minimized with control mechanisms. These risks are integrated into the company's daily workflows and continuously monitored, thus trying to minimize their possible negative effects.

Unacceptable risks refer to situations that are beyond the company's risk tolerance and require more serious management strategies. For such risks, Aydem Renewables employs methods such as risk transfer or avoidance. Risk transfer involves the transfer of risks to another party, usually through insurance policies or contractual clauses, while avoidance may involve the complete elimination of the source of the risk or the cessation of that business activity. Unacceptable risks require a detailed management plan as they are above the company's risk tolerance levels and are divided into three different management strategies: control, risk transfer and avoidance.

The control strategy includes the implementation of appropriate risk mitigation measures to minimize unacceptable risks. Aydem Renewables implements this strategy by developing internal control systems, procedures and policies

to reduce the effects of risk. These controls can be methods applied by directly intervening in the causes of the risk or mitigating its effects.

Risk transfer involves transferring risks to another party through insurance policies, contracts or agreements with third parties. This method allows Aydem Renewables to reduce financial risks and spread the cost of potential losses.

Avoidance strategy involves eliminating the risk completely or stopping certain business activities. Aydem Renewables aims to completely eliminate that risk by avoiding the source of the risk or stopping risky activities. This is often a preferred approach for activities that are costly or may adversely affect the company's reputation.

Aydem Renewables Risk Assessment Structure

For risks that cannot be identified in the process, Aydem Renewables keeps such risks under constant observation and aims to take proactive measures by anticipating potentially emerging risks. This proactive approach is critical to ensure that the company is resilient to unexpected s and to maintain business continuity.

The risk assessment process is a fundamental management tool that supports Aydem Renewables' sustainable growth and strong position in the market. With this progressive and layered risk assessment process, the Company manages all risks in a systematic manner, ensuring that business processes and strategic decisions are always made consciously and carefully. Aydem Renewables' risk management strategy serves the purpose of maintaining operational excellence and further consolidating its leadership in the sector.

Assessment of Short/Medium/Long Term Risks

Aydem Renewables implements its risk management strategy by categorizing short, medium and long-term risks on the basis of time frames. Short-term risks are risks that the company may face within 0-3 years and are generally directly related to operational activities. Such risks usually include risks that may affect daily workflows that require quick response and solution. Aydem Renewables manages these risks through a dynamic process that requires instant decisions and quick actions.

Medium-term risks cover the time period between 3-10 years and generally include factors that may affect strategic decisions. These risks may arise from factors such as market changes, technological developments, legal regulations and trends in the sector. Aydem Renewables conducts comprehensive planning and strategic analysis to manage these risks. Medium-term risk management is organized in line with the company's future growth plans and investment strategies.

Long-term risks cover a time horizon of 10 years or more and often involve broad issues that could affect the company's long-term sustainability and industrial position. These risks include macroeconomic factors such as climate change, sustainable resource utilization, long-term legal and environmental regulations. Aydem Renewables addresses such long-term risks in line with the company's sustainability targets and future vision and develops long-term strategies against these risks.

The management of risks specific to each time period is part of Aydem Renewables' comprehensive risk management program and the company assesses these risks individually and applies appropriate management techniques to each of them. This strategic approach ensures that Aydem Renewables is prepared for all potential risks and supports the company's long-term success and leadership in the sector. Aydem Renewables aims to proactively manage risks throughout these time periods and achieve all operational, strategic and corporate targets.

Targets and Performance Indicators

Aydem Renewables develops comprehensive and strategic action plans in order to achieve its sustainability targets, and in this process, it adopts effective methods that will enable the company to achieve both economic, social and environmental sustainability targets. These strategies are implemented in a wide range of areas, from reducing environmental impact to the use of renewable energy resources with maximum efficiency, to protecting the welfare of its employees and the general benefit of society.

The steps taken by Aydem Renewables in the field of environmental sustainability include elements such as emission reduction, waste management, energy efficiency and protection of natural resources. These elements not only reduce environmental impact, but also contribute to the company's economic sustainability by providing cost savings in the long term.

In terms of social sustainability, Aydem Renewables attaches great importance to the health and safety of its employees. It takes proactive measures to reduce occupational accidents and occupational diseases, and also implements human resources policies that support the principles of diversity and inclusion. These policies promote diversity and equal opportunities within the company, enabling all employees to make the best use of their talents and potential. In terms of governance, Aydem Renewables focuses on transparent, accountable and ethical business practices. These practices include

establishing strict internal control mechanisms and appropriate governance structures to prevent corruption and anti-competitive practices. This approach increases the trust of stakeholders and strengthens the transparency and effectiveness of the company's decision-making processes.

Aydem Renewables measures its sustainability performance on the basis of various criteria, sets targets in this direction and monitors performance indicators. The Company's targets and performance in this area are analyzed in detail according to environmental, social and governance criteria:

Environmental Criteria

· All power plants of Aydem Renewables have ISO 14001 and ISO 50001 certificates since February 2020, these certificates show that environmental management and energy management standards have been adopted by the company.
· The company has committed to achieve a net zero target by 2050 in line with the SBTi-approved targets to "reduce absolute scope one and two greenhouse gas emissions by 51% and absolute scope three greenhouse gas emissions from capital goods by 30% by 2032 compared to the base year of 2022". To achieve these targets, the company has defined energy efficiency and consumption plans.

Social Criteria

· Announced clear targets for reducing occupational accidents and implemented an ISO 45001 certified health and safety system. Reported positive trends in terms of accident frequency and severity rates.
· It has made extensive commitments and taken measures to promote non-discrimination and diversity, and to ensure the integration of social standards in supply chain management.

Governance Criteria

· There are appropriate commitments and internal control measures in place to prevent corruption and anti-competitive practices.
· The Company's internal control system has been assessed as strong and this system has been established to manage Corporate Social Responsibility risks.

Aydem Renewables develops the necessary strategies and action plans to achieve its sustainability targets and continuously improves its performance in these areas. This approach plays an important role in achieving Aydem Renewables' economic, social and environmental sustainability targets. These strategies and action plans ensure Aydem Renewables' continuous progress in its sustainability journey and contribute to the company's value creation for both current and future generations. This process strengthens the company's competitive position in the market and supports its long-term sustainable success.

Stakeholder Engagement

Aydem Renewables has identified communication and cooperation with stakeholders as a strategic priority and in this context, it has put in place multidirectional and effective communication channels. The company's dialog with its employees is maintained through an Idea Line that is constantly kept active, the Enport Intranet Platform, the monthly Bulletin and regular social events. These channels enable employees to participate and be heard, while strengthening internal information flow and transparency. At the same time, management meetings, employee trainings and project group meetings are used to exchange ideas around company strategies and targets, while the IKON application enables employees to quickly access up-to-date information about the company.

Communication with shareholders and investors is ensured through regular board meetings and committee meetings, while the investor relations website and continuous communication via channels such as e-mail and telephone provide up-to-date and detailed information on the company's financial performance and strategic direction. General shareholders' meetings are also held on an annual basis, open to the participation of shareholders, and allow for the sharing of important decisions on the overall situation and vision of the company.

Relations with the Holding and group companies are conducted in a similar fashion through board meetings. These meetings play a critical role in ensuring intra-group coordination and alignment of strategic targets. Communication with public institutions and local governments is supported by annual publications such as sustainability and annual reports, while regular online and face-to-face meetings underline transparency and accountability. These dialogues serve an important function in the company's processes of assessing its social and environmental impact and complying with regulations.

Relations with suppliers and subcontractors are also supported by mechanisms such as sustainability reports and e-procurement systems. These help to understand and implement sustainability standards in the supply chain, while continuous communication channels such as e-mail and telephone strengthen collaboration and coordination in operational processes.

Relations with banks and financial institutions are maintained through continuous online and face-to-face meetings and congresses, while instant reporting ensures transparent sharing of financial performance.

Collaboration with universities, research institutions and consultants is supported by congresses and ongoing meetings that promote the exchange of knowledge and the development of innovative solutions. These relationships play an important role in the company's research and development activities.

Relations with independent audit and rating agencies are managed through regular reports and congresses, while face-to-face meetings with trade unions, nongovernmental organizations and industry associations play a role in expanding and increasing the impact of the company's social responsibility projects.

While communication with the community is maintained through projects and ad-hoc meetings, relations with the media ensure that the public is informed through annual reports, press releases and meetings. This plays a critical role in the management of the company's public relations and brand perception.

Relationships with international organizations and customers are conducted primarily through projects, reflecting the company's global collaborations and efforts to increase customer satisfaction.

This multi-layered and dynamic communication network ensures that Aydem Renewables remains sensitive to the needs and expectations of its stakeholders and contributes to the successful implementation of the company's sustainability strategy. Each communication channel plays a fundamental role in achieving Aydem Renewables' strategic and operational targets, strengthening both internal and external collaboration and engagement.

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Stakeholders	Communication Channels	Communication Frequency
	Idea Line	Continuous
	Enport Intranet Platform	Continuous
	Newsletter	Monthly
	Social activities	Continuous
Employees	Management meetings	Continuous
	Employee trainings	Continuous
	Project group meetings	Continuous
	IKON app	Continuous
	Board of Directors meetings	Continuous
	Committee meetings	Every 3 Months
Shareholders and Investors	Investor relations website	Continuous
	General Assembly meetings	Annual
	Emails, phone calls and interviews	Continuous
	Board of Directors meetings	Continuous
Holding and Group Companies	General Assembly meetings	Annual
	Sustainability Report	Annual
Public Organizations and Local Governments	Annual Report	Annual
	Online and face-to-face interviews	Continuous
	Sustainability Report	Annual
Suppliers and Subcontractors	Emails, phone calls and interviews	Continuous
	E-tender	Continuous
	Online and face-to-face interviews	Continuous
Banks and Financial Institutions	Congresses	Continuous
	Reporting	Instant
	Online and face-to-face interviews	Continuous
Universities and Research Institutions and Consultants	Congresses	Continuous
	Online and face-to-face interviews	Continuous
Independent Audit and Rating Agencies	Congresses	Continuous
	Reporting	Instant
	Sustainability Report	Annual
Trade Unions, Civil Society Organizations and Sector	Annual Report	Annual
Associations	Online and face-to-face interviews	Continuous
	Meetings and face-to-face interviews	Instant
Society	Projects	Instant
	Sustainability Report	Annual
	Annual Report	Annual
	Press releases	Continuous
Media	Press conferences and face-to-face meetings	Instant
	Sectoral meetings and congresses	Continuous
International Organizations	Projects	Instant

Channels through which Aydem Renewables communicates with stakeholder groups and frequency of communication

Stakeholder Engagement

Memberships and Collaborations

As of the end of 2023, associations and organizations in which Aydem Renewables actively participated in order to support its sustainability targets and strengthen its leading position in the renewable energy sector:

· Electricity Producers Association (EÜD)
· Turkish Wind Energy Association (TÜREB)
· Business Council for Sustainable Development (BCSD Turkey)
· Green Hydrogen Producers Association (H2ODer)
· Turkish Investor Relations Society (TUYID)
· Corporate Governance Association of Turkey (TKYD)
· Turkish Geothermal Energy Association (JED)
· Energy Investors Association (GÜYAD)
· Turkish Electricity Industry Association (TESAB)
· United Nations Global Compact (UNGC)
· Women's Empowerment Principles (WEPs)
· Science Based Targets initiative (SBTi)
· Sustainable Production and Consumption Association (SUT-D)

These collaborations demonstrate Aydem Renewables' commitment to fulfill its commitments in sustainability and corporate governance and support the company's target of adding value to its stakeholders by increasing its reputation in the sector.

Double Materiality Analysis

Aydem Renewables' double materiality analysis is an assessment system that covers various sustainability issues such as business ethics and corporate governance, occupational health and safety, workplace practices, contribution to the local economy and society, business continuity and reliability, climate change and biodiversity. This analysis is conducted by taking into account the potential impact of material issues on Aydem Renewables' financial performance and environmental, social and governance impacts.

The systematic assessment process is carried out by taking into account the potential impact of the issues on the financial health of the company, as well as their environmental and social dimensions, and the results are visualized on a matrix. The matrix is used in Aydem Renewables' strategic planning and risk identification, and serves as an important tool in prioritizing sustainability-related activities.

In determining the material issues, Aydem Renewables has taken the International Financial Reporting Standards (IFRS), Turkish Sustainability Reporting Standards (TSRS), Sustainability Accounting Standards Board (SASB), the new European Sustainability Reporting Standards (ESRS) of the European Financial Reporting Advisory Group (EFRAG) and the new Global Reporting Initiative Standards (GRI) Standards that entered into force as of January 2023 as basis.

In Aydem Renewables' twoway materiality analysis, the concept of "impact materiality" refers to the potential impacts of Aydem Renewables' activities on the environment, society and governance, i.e. the broader social and environmental consequences of the company's activities, while "financial materiality" emphasizes the direct impact of material environmental, social and governance issues on Aydem Renewables' financial performance and valuation. These two perspectives ensure that Aydem Renewables considers both

comprehensive impact and financial consequences in its decisionmaking processes. The concepts of "Materiality in terms of Impact" and "Financial Materiality" are designed to meet all expectations of TSRS, IFRS, CSRD, SASB and GRI standards and regulations within the scope of materiality analysis.

When evaluating Aydem Renewables' material issues, the environmental and social impacts of these issues are analyzed on the horizontal axis (X axis), while their impact on the company's financial performance and valuation is analyzed on the vertical axis (Y axis). The combination of these two dimensions reveals both the company's impact on environmental and social issues and the financial impact of these issues on the company, and in this way, it helps Aydem Renewables to determine its strategic focus points and priorities. These strategies enable the company to more effectively plan which issues to prioritize while addressing both potential impacts and opportunities

Social and Governance Factors.

Business Ethics and Corporate Governance
Occupational Health and Safety
Workplace Applications
Contribution to Local Economy and Society
Business Continuity and Reliability
Climate Change and Biodiversity.

Double Materiality Analysis

The Sustainability, Environment, Occupational Health and Safety Committee, Investment Committee, Early Detection of Risk Committee and the Board of Directors play critical roles in Aydem Renewables' Double Materiality Analysis.

These committees examine in detail the company's impact on environmental and social issues and their impact on the company's financial performance. The Board of Directors incorporates the information obtained into strategic decision-making processes and develops a holistic approach to the company's sustainability targets and financial soundness.

Double Materiality Analysis Process

1. Phase Analyzing the business ecosystem A detailed analysis of Aydem Renewables' business ecosystem was conducted. This analysis covered the company's industrial activities, market dynamics and position in the ecosystem, aiming to understand the wider impacts of its activities.
2. Phase: Identify the environmental, social and governance impacts that Aydem Renewables causes and is exposed to The environmental, social and governance impacts of the company have been comprehensively analyzed. This process assessed both the direct impacts of the company's operations and the broader environmental and social consequences of these impacts across the value chain.
3. Phase: Identification of priority topics based on the identified environmental, social and governance impacts, stakeholder analysis and secondary data sources.

Based on the identified environmental, social and governance impacts, material issues were identified by examining the company's ecosystem, analyzing the views of internal and external stakeholders and drawing on various sources. This phase was shaped by taking into account the company's strategic focus, the sustainability risks of the ecosystem in which it operates and stakeholder expectations.

Within the scope of secondary data sources, Appendix C of the ESRS: Disclosure and Implementation Requirements in the Current ESRS, which is applicable in connection with ESRS 2 General Disclosures,

the Solar Technology & Project Developers guidance in SASB within the scope of TSRS obligations and GRI Standards were utilized to identify material topics.

Feedback regularly obtained from all stakeholder groups and communication channels, which are mentioned in detail in the Stakeholder Engagement section of the Report, constitute the primary data sources for identifying material topics.

In the survey conducted with internal and external stakeholders, feedbacks of 211 stakeholders were received. As a result of the survey, the scale, scope and irreversibility character of the environmental, social and governance impacts of Aydem Renewables' business activities were measured.

Priority issues of Aydem Renewables and the scope of these issues

Priority Issues	Scope
Business Ethics and Corporate Governance	Business Ethics Corporate Governance Risk Management Transparency Anti-Corruption
Occupational Health and Safety	Disaster and Emergency Preparedness Occupational Health and Safety Security
Workplace Practices	Inclusive Workplace, Diversity and Equality Talent Management Employee Satisfaction and Engagement
Contribution to Local Economy and Society	Infrastructure Investments Contribution to Local Economy and Employment Relations with Local Communities
Business Continuity and Reliability	Sustainable Supply Chain Availability and Business Continuity Efficient Renewable Energy Supply Economic Performance Innovation Digital Transformation and Information Security
Climate Change and Biodiversity	Climate Change Greenhouse Gas Emissions Emissions Trading Renewable Energy Energy Efficiency Waste Management Circular Economy Biodiversity Soil Pollution Material Consumption Water Efficiency Protection of Water Resources

Double Materiality Analysis

1. Phase: Determining the types of risks that Aydem Renewables may be exposed to The types of risks that Aydem Renewables may be exposed to have been identified. At this stage, potential risks were categorized in a systematic manner. The risk types evaluated by Aydem Renewables and the process of determining these risk types can be examined in detail in the "ESRS Risk Categories" section of the Report.
2. Phase: Listing the risky issues within the scope of the identified risk types. Risky issues under the identified risk types are listed. This process provides a comprehensive inventory of risks.

Based on this inventory, questionnaires were sent to Aydem Renewables' internal and external stakeholders. These questionnaires were conducted to reveal the scale, scope, irreversibility character and the magnitude of the financial impact of the impacts, risks and opportunities that stakeholders are experiencing.

In the financial materiality survey conducted with internal stakeholders, a total of 30 risky issues were addressed, and with the participation of Aydem Renewables' Risk Management, Legal, Accounting, Human Resources departments, the scale, scope, unchangeability character and the magnitude of the impact on the financials of the impacts, risks and opportunities experienced were revealed.

3. Phase: Associating the identified Risky Issues with the Priority Issues of Aydem Renewables. Thus, capturing synergies between Risk Types and Priority Topics.

The identified risk issues and their relationship with Aydem Renewables' material issues were discussed. At this stage, synergies between risk types and material issues were explored. These synergies enabled Aydem Renewables to identify potential environmental, social and governance impacts.

4. Phase: Weighting the financial and ecosystem ESG impacts of Risky Issues and Risk Types from the perspectives of scale, scope, irreversibility and likelihood The financial and ESG impacts of risk issues and risk types were assessed and weighted from various perspectives. This stage clearly established the importance and prioritization of risks.

The assessment was carried out in two main tracks: Financial Prioritization and Impact Prioritization. The Financial Prioritization analysis was evaluated based on the criteria of Magnitude of Financial Impact of Material Issues and Likelihood of Financial Impact of Material Issues. The results obtained from this analysis were then integrated into a single score card and used in the Y-axis of the Double Materiality Analysis.

The Impact Materiality analysis was assessed based on the criteria of Existing Impacts and Potential Impacts. The assessed impacts were analyzed in terms of (i) the magnitude of the impact, (ii) the scope of the impact, and (iii) the level of irreversibility of the impact. The results obtained from the analysis were then integrated into a single score sheet and used in the X axis of the Materiality Analysis.

5. Phase: Displaying the results of Aydem Renewables' Double Materaility Analysis on the X and Y axes based on the results of the Financial Prioritization and Impact Prioritization analyses The results of the Financial Materiality and Impact Materiality analyses were displayed in a Double Materiality matrix on the X and Y axes, allowing Aydem Renewables to clearly see the projects and activities with the highest priority in terms of both financial and impact. This method effectively guided the company's strategic decisions, resource allocation and long-term planning. This matrix has served as a strategic tool to help Aydem Renewables fulfill its financial, social and environmental responsibilities in a balanced manner.

Impact Materiality Analysis

Business Ethics and Corporate Governance
Occupational Health and Safety
Workplace Applications
Contribution to Local Economy and Society
Business Continuity and Reliability
Climate Change and Biodiversity.

The company's impact on environmental and social issues and the effects of these issues on financial performance analysed in detail.

Financial Materiality Analysis

Business Ethics and Corporate Governance
Occupational Health and Safety
Workplace Applications
Contribution to Local Economy and Society
Business Continuity and Reliability
Climate Change and Biodiversity.

Value Creation Model

Aydem Renewables has adopted a comprehensive and multi-dimensional Value Creation Model in line with its sustainable growth and sectoral leadership targets. This model offers a broad perspective, focusing not only on the company's financial performance but also on its environmental, social and corporate responsibilities.

	Inputs	BUSINESS MODEL
Financial Capital	Capital and credit facilities from investors. Revenues from energy sales. Government incentives and green financing sources. Financial assets and investments related to energy production and trade.	Business Ethics and usiness Corporate Governance orporate
Manufactured Capital	Construction and engineering works of power generation facilities. Machinery and equipment used for operation and maintenance. Technological systems used in energy production. The company's office equipment and information technology infrastructure.	Occupational Health and cupational Safety
Intellectual Capital	Patents and intellectual property rights related to renewable energy owned by the company. Information and technologies obtained as a result of research and development activities. Software and management systems that improve the company's business processes and efficiency. Sectoral experience and expertise of staff and managers.	Workplace orkplace Applications
Human Capital	Training and development activities of company employees. Workforce with technical expertise and operational skills. Managers with management and leadership skills. Company culture, ethical standards and employee satisfaction.	Climate Change and e Biodiversity
Relational Capital Social and	Strong relationships with stakeholders and local communities. Reputation and brand credibility in the sector. Collaborations and strategic partnerships. Strong customer and supplier networks.	Business Continuity and usiness Reliability eliability
Natural Capital	Access to and sustainable use of renewable energy sources. Efforts to manage and reduce carbon footprint. Positive impacts on ecosystems and biodiversity. Waste management and pollution reduction policies.	Local Economy and ocal Contribution to Society

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The model addresses in detail how the company creates an impact in the energy sector and how this impact creates value on society, environment and economy. Based on four main components: inputs, business model, outputs and value creation, this model reflects Aydem Renewables' sustainability-oriented strategy and vision for the future.

Profitability and return on investment. Increased revenues from renewable energy plants. Cost savings and operational efficiency. Increase in company value and maximization of shareholder value

Increase in energy production capacity. Expansion and improvement of physical assets and infrastructure.

Improvements in energy efficiency and reliability. Reduced maintenance and operating costs.

Development of innovative technologies and processes. Improvements in management and business processes. Increased competitiveness of the company in the market. Revenue from intellectual property rights and licensing opportunities.

Increase in employee satisfaction and loyalty. Improvements in labor productivity and level of expertise. Higher occupational health and safety standards.

The contribution of management and leadership skills to company success.

Strengthening reputation in the eyes of society and stakeholders.

Increased customer loyalty and market share.

Opening new opportunities through collaborations and partnerships.

Social impacts of social responsibility projects.

Reduction in carbon emissions through the use of renewable energy.

Conservation and sustainable use of natural resources. Improving ecosystems and biodiversity.

Reputational and market advantages gained through environmental permits and certificates.

Outputs Value Creation

Sustainable growth and long-term financial stability of the company.

Increased investor confidence and a sustained increase in the company's market capitalization.

Improving financial performance and consolidating the company's position as an industry leader.

Increased energy security through the expansion and modernization of energy infrastructure.

Strengthening the technological leadership and innovation position in the sector.

Raising standards in energy efficiency and sustainability.

The company drives change and development in the industry through innovative solutions and technologies. Transforming intellectual capital into a company's competitive advantage.

Potential to leverage know-how and experience into new business lines and markets.

Continuous improvement of company culture and knowledge management.

Strengthening the company's position in the sector through high employee motivation and productivity.

Increased capacity to attract and retain talent.

Success in occupational health and safety creates a positive image in society.

The positive contribution of employee development and training to the overall success of the company.

The contribution of good corporate citizenship practices to social welfare and development.

Increased stakeholder support and participation in company operations.

Playing a decisive role in industry leadership and business ethics.

Accelerating the transition to renewable energy and playing a leading role in environmental sustainability. The long-term environmental benefits of conserving natural resources and reducing the ecological footprint. Expanding efforts to improve biodiversity and ecosystem services.

Value Creation Model

Financial Capital

It includes financial resources such as capital from investors, credit facilities, revenues from energy sales, government incentives and green financing sources. Financial assets and investments related to energy production and trade are also considered in this category.

Manufactured Capital

This category includes machinery and equipment used for the construction, engineering, operation and maintenance of power generation facilities, technological systems and the company's office equipment and IT infrastructure

Intellectual Capital

The company's patents, intellectual property rights in the field of renewable energy, information and technologies obtained as a result of R&D activities, software that improves the company's business processes and efficiency, and the sectoral experience and expertise of its personnel.

Human Capital

Training and development activities of company employees, workforce with technical expertise and operational skills, managerial staff with management and leadership skills, corporate culture, ethical standards and employee satisfaction are evaluated in this category.

Social and Relational Capital

This includes relationships with stakeholders and local communities, industry reputation and brand credibility, collaborations, strategic partnerships and strong customer and supplier networks.

Access to renewable energy sources, management of carbon and water footprint, positive impacts on ecosystems and biodiversity, waste management and pollution reduction policies fall under natural capital.

01

These inputs form the cornerstones of Aydem Renewables' value creation process and enable the company to achieve its targets of sustainable growth, innovation and sectoral leadership. Aydem Renewables plays a pioneering role in the sector by effectively utilizing various types of capital in the value creation process. In terms of financial capital, the company is taking important steps to ensure sustainable growth and long-term financial stability, increasing investor confidence and achieving a continuous increase in market value. This contributes to improved financial performance and reinforces the Company's position as an industry leader.

03

In terms of human capital, Aydem Renewables strengthens its position in the sector thanks to the high motivation and productivity of its employees, increases its capacity to attract and retain talent, and creates a positive image in the society with its achievements in the field of occupational health and safety. Employee development and training contribute positively to the overall success of the company.

02

In the field of manufactured capital, Aydem Renewables attaches great importance to the expansion and modernization of its energy infrastructure. In this way, it increases energy security, strengthens its position as a technological leader and innovator in the sector, and raises standards in energy efficiency and sustainability. In terms of intellectual capital, the company drives change and development in the sector through innovative solutions and technologies, and utilizes its know-how and experience as a potential for expansion into new business lines and markets. It also focuses on the continuous development of corporate culture and knowledge management, transforming intellectual capital into a competitive advantage.

04

In terms of social and relational capital, Aydem Renewables contributes to social welfare and development through good corporate citizenship practices, increases the support and participation of stakeholders in company activities, and plays a decisive role in sectoral leadership and business ethics. In the field of natural capital, accelerating the transition to renewable energy and playing a leading role in environmental sustainability expands efforts to protect natural resources, reduce ecological footprint and improve biodiversity and ecosystem services. This comprehensive and integrated approach forms the basis of Aydem Renewables' success in the value creation process.

Contribution to Sustainable Development Goals

Aydem Renewables is an energy company that aims to provide sustainable and environmentally friendly energy solutions. The company focuses especially on renewable energy sources and makes significant investments in this field. It is a leader in electricity generation from renewable energy sources such as solar energy, wind energy and hydroelectric energy.

Aydem Renewables' activities include clean energy generation and efficient distribution of this energy. By using renewable energy resources, the company aims to minimize environmental impact and reduce its carbon footprint. In addition, contributing to sustainable development goals and providing innovative solutions in the energy sector are among the priorities of Aydem Renewables.

The company's projects are developed in line with the principles of environmental sustainability and economic efficiency. Thanks to these projects, significant contributions are made to local communities and Turkey's energy sector in general. Aydem Renewables plays a pioneering role in the energy sector by closely following innovations and technological developments in the field of renewable energy.

Aydem Renewables' contribution to the SDGs is discussed in order of prioritization.

Aydem Renewables is an energy company that aims to provide sustainable and environmentally friendly energy solutions.

Accessible and Clean Energy

Aydem Renewables aims to reduce carbon emissions in energy production and minimize its impact on the environment by investing in renewable energy sources. This target ensures sustainability in energy production by increasing the use of clean energy sources such as solar, wind and hydroelectricity. Aydem Renewables' plans to increase the capacity of hydroelectric and wind power plants diversify energy production by using clean and renewable energy sources. These plans represent a significant step forward in environmental sustainability and energy efficiency by increasing access to clean energy. Increasing installed capacity reduces dependence on fossil fuels for power generation and strengthens the shift towards environmentally friendly energy sources.

Improvements in WPP and GPP facilities increase access to clean energy by ensuring efficient and effective energy production. These improvements aim to utilize renewable energy resources more effectively and reduce the environmental impact of energy generation. In addition, Sarı Perakende Enerji Satış ve Ticaret Inc.'s pre-license applications and EIA processes support growth in clean energy by enabling the development of new renewable energy projects.

The Company's plans to increase the diversity of energy production and stabilize the continuity of energy supply encourage the use of clean and renewable energy sources. This approach aims to reduce carbon emissions and minimize the environmental impact of energy production. Successful completion of EIA processes enables the realization of projects sensitive to environmental impacts.

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Industry, Innovation and Infrastructure

Aydem Renewables plays an important role in the energy sector in line with the Industry, Innovation and Infrastructure (SDG 9) Sustainable Development Goal. This goal aims to increase economic growth and social welfare by supporting sustainable industrial development, innovation and infrastructure. Aydem Renewables' activities in this area are critical to increase the company's competitiveness in the energy sector and to create a more balanced and sustainable energy generation portfolio.

By adopting innovative approaches in energy generation, the Company takes important steps towards modernizing and continuously improving its infrastructure. In this context, it prioritizes the effective use of renewable energy resources and supports the principles of

sustainability and efficiency in the energy sector. Aydem Renewables generates energy from renewable sources such as solar energy, wind energy and hydroelectric energy, integrating technological innovations in this process.

The Company's efforts to modernize its power generation infrastructure are carried out with the aim of increasing energy efficiency and minimizing environmental impacts. In this context, Aydem Renewables continuously improves the equipment and systems in its facilities and increases the performance and safety of the facilities by using innovative technologies such as Condition Monitoring Systems (CMS). These systems continuously monitor the condition of the equipment, detect possible malfunctions in advance and ensure the uninterrupted continuity of energy generation processes. Aydem Renewables makes significant investments in business

development activities that will support sustainable development in the energy sector. These business development activities aim to develop new and innovative energy solutions and to make energy generation and distribution processes more efficient and environmentally friendly. In this way, the Company adopts an approach that prioritizes innovation and technological development in the energy sector.

Aydem Renewables' activities in the energy sector play an important role in meeting the energy needs of Turkey and the global community by supporting sustainable industrial development and infrastructure. The company's efforts contribute not only to economic growth but also to environmental sustainability and social welfare. Aydem Renewables continues to play a pioneering role in the renewable energy sector towards achieving the Industry, Innovation and Infrastructure (SDG 9) targets.

Contribution to Sustainable Development Goals

Aydem Renewables' business development strategies center on sustainable and environmentally friendly energy production.

Climate Action

Aydem Renewables assumes a leading role in combating climate change within the scope of Climate Action (SDG 13) Sustainable Development Goal. In line with this goal, the company's business development strategies focus on mitigating the impacts of climate change by centering on sustainable and environmentally friendly energy production.

Business development activities enable Aydem Renewables to adopt innovative and sustainable approaches in the energy sector. Within this framework, the company focuses on reducing its carbon footprint and greenhouse gas emissions by investing in renewable energy sources. Increasing the use of clean energy sources such as solar energy, wind energy and hydroelectric power reduces dependence on fossil fuels and minimizes the environmental impact of energy production.

The Company's business development strategies aim to increase resilience to different climatic conditions and market fluctuations and ensure continuity of energy supply by diversifying energy production sources. This diversification is in line with the goals of sustainability in energy production and reducing environmental impact, and

demonstrates the Company's commitment to sustainable energy. In business development processes, Aydem Renewables focuses on the development of innovative and environmentally friendly energy solutions. These processes aim to make energy generation and distribution processes more efficient and environmentally friendly, thus directly contributing to the fight against climate change.

Aydem Renewables strives to minimize the negative impacts on the environment by evaluating the environmental impacts of its projects in detail through Environmental Impact Assessment (EIA) and other legal processes. These processes ensure that projects are in line with sustainability principles and demonstrate its commitment to reducing environmental impact.

Aydem Renewables' business development activities play an important role not only in the energy sector but also in the fight against global climate change in general. The company's efforts support economic growth while also promoting environmental sustainability. Aydem Renewables continues to play a pioneering role in the renewable energy sector towards achieving Climate Action targets.

Responsible Production and Consumption

Aydem Renewables promotes sustainable and responsible practices in the energy sector in line with the Sustainable Development Goal of Responsible Production and Consumption (SDG 12). This goal includes the effective use of environmental resources, optimizing waste management and adopting sustainable consumption models. Aydem Renewables' activities in this area aim to reduce its ecological footprint and promote environmental sustainability by adopting responsible production and consumption principles in the energy sector.

The Company strives to minimize the environmental impact of energy production by focusing on renewable energy sources. The use of clean energy sources such as solar energy, wind energy and hydroelectric power reduces the use of fossil fuels and reduces greenhouse gas emissions. This approach ensures sustainable energy production by minimizing environmental impacts.

Aydem Renewables continuously makes improvements to increase efficiency in energy generation processes. In this context, optimization of equipment and systems in power generation facilities is carried out in order to increase energy efficiency and reduce resource use to the optimum level.

Aydem Renewables develops waste management and recycling practices, aiming to reduce environmental impacts and use resources more efficiently.

The company's business development processes focus on the development of sustainable and environmentally friendly energy solutions. These processes aim to make energy production and distribution processes more efficient and environmentally friendly, thus contributing to the principles of responsible production and consumption.

Through Environmental Impact Assessment (EIA) and other legal processes, Aydem Renewables strives to minimize negative impacts on the environment by assessing the environmental impacts of its projects in detail. These processes ensure that projects are in line with sustainability principles and demonstrate its commitment to reducing environmental impact.

Aydem Renewables' activities towards Responsible Production and Consumption (SDG 12) targets promote sustainable energy production and environmental sustainability. These efforts of the company prioritize environmental responsibility while supporting economic growth. Aydem Renewables continues to play a pioneering role in the renewable energy sector on the way to achieving responsible production and consumption targets.

Contribution to Sustainable Development Goals

Decent Work and Economic Growth

Within the scope of the Sustainable Development Goal of Decent Work and Economic Growth (SDG 8), Aydem Renewables takes important steps towards creating quality job opportunities in the energy sector and supporting sustainable economic growth. This goal includes ensuring decent working conditions for all and promoting economic growth in a sustainable manner. Aydem Renewables' activities in this area aim to both create employment and sustainable economic development in the energy sector. By investing in renewable energy sources, the Company creates new and sustainable jobs.

These investments increase the demand for qualified labor force and expand employment opportunities in the energy sector, especially in areas such as solar energy, wind energy and hydroelectric energy. Aydem Renewables' energy generation and distribution projects contribute to the local and national economy and support sustainable economic growth.

Aydem Renewables attaches great importance to the professional development of its employees. Through training and development programs, it increases the skills and capacities of its employees, thus contributing to the formation of a more qualified and efficient workforce in the energy sector. This approach aims to ensure decent working conditions and increase employee job satisfaction.

Aydem Renewables aims to advance economic growth in line with environmental sustainability by adopting sustainable and environmentally friendly practices in the energy sector. The company's efforts to increase efficiency in energy generation processes optimize resource use and promote economic efficiency in the energy sector.

Aydem Renewables supports local communities and contributes to social development through various social responsibility projects. These projects have a positive impact on the economic and social development of local communities as well as the energy sector.

Aydem Renewables' activities towards Decent Work and Economic Growth (SDG 8) targets aim to create quality job opportunities in the energy sector, promote economic growth in a sustainable manner and increase social welfare. The company's efforts contribute to a sustainable future, both economically and socially, and continue to play a leading role in the energy sector.

Aydem Renewables takes important steps towards creating quality job opportunities in the energy sector and supporting sustainable economic growth.

"Sustainability Principles Compliance Framework" includes the basic principles that publicly traded companies are expected to disclose while conducting their Environmental, Social and Corporate Governance (ESG) activities.

General Information: The Company publishes the details of its sustainability-related information in the Sustainability Report in June every year, and the information published in the Sustainability Report covers the previous year's data.

		COMPLIANCE STATUS
		YES	NO	PARTLY	INTERESTLESS	EXPLANATION	REPORT INFORMATION ON PUBLICLY DISCLOSED INFORMATION
	A. General Principles
	A1. Strategy, Policy and Objectives
A1.1	The Board of Directors determines environmental, social and governance (ESG) priority issues, risks and opportunities	Yes					2023 Integrated Annual Report (Value Creation Structure Section)
	The Board of Directors establishes ESG policies (For example: Environmental Policy, Energy Policy, Human Rights and Employee Policy etc.) and declares to the public.	Yes				Relevant policies are published on the website.	https://www. aydemyenilenebilir.com. tr/bilgi/24/politikalar-m z?hl=en
A1.2	The short and long term goals in line with ESG policies are declared to the public.	Yes					2023 Integrated Annual Report (Environmental Assets, Human Resources Assets, Social Assets Section)
	A2. Implementation/Monitoring
A2.1	The committees and/ or units responsible for the implementation of ESG policies as well as the highest-level person in charge of ESG issues and their duties are determined and publicly disclosed.	Yes					2023 Integrated Annual Report (Value Creation Structure Section)
	The responsible committee / unit reports the activities carried out within the scope of the policies to the Board of Directors at least once a year.	Yes				The Sustainability, Environment, Occupational Health and Safety Committee reports the outcomes of its activities to the Board of Directors.	2023 Integrated Annual Report (Value Creation Structure Section)

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		COMPLIANCE STATUS
		YES	NO	PARTLY	INTERESTLESS	EXPLANATION	REPORT INFORMATION ON PUBLICLY DISCLOSED INFORMATION
A2.2	Implementation and action plans in line with the ESG targets are formed and declared to the public.	Yes					2023 Integrated Annual Report (Environmental Assets, Human Resources Assets, Social Assets Section)
A2.3	The scope of ESG Key Performance Indicators (KPI) and relevant indicators are announced on a yearly basis.	Yes				ESG performance indicators are compared with previous years and published in the Integrated Annual Report.	2023 Integrated Annual Report (Performance Tables)
A2.4	Activities that improve sustainability performance in business processes, products, and services have been disclosed to the public.	Yes					2023 Integrated Annual Report (Knowledge and Innovation Assets, Environmental Assets, Financial Assets, Operational Assets Section)
	A3. Reporting
A3.1	Information regarding the performance of the Incorporation in terms of sustainability performance, targets and activities are included correctly and adequately in the annual report.	Yes					2023 Integrated Annual Report (Value Creation Structure Section)
A3.2	Information about its activities on which of the United Nations (UN) 2030 Sustainable Development Goals are related to has been disclosed to the public by the Incorporation.	Yes					2023 Integrated Annual Report (Value Creation Structure Section)

		COMPLIANCE STATUS
		YES	NO	PARTLY	INTERESTLESS	EXPLANATION	REPORT INFORMATION ON PUBLICLY DISCLOSED INFORMATION
A3.3	Information about the important lawsuits filed and/or concluded in ESG issues, which are important in terms of ESG policies and/or will significantly affect activities, have been disclosed to the public.	Yes				There are no cases within the scope of EMS.	2023 Integrated Annual Report (Other Matters Section)
	A4. Verification
A4.1	ESG Key Performance metrics of the Incorporation have been verified and publicly disclosed by an independent third party organization.			Partially		1- Within the scope of carbon footprint, the 2023 carbon footprint calculations of the headquarters and all enterprises have been verified by an Accredited Certification Body according to ISO 14064- 1 Standard. 2- The 2023 calculations of the center and all our enterprises for the water footprint have been verified by an Accredited Certification Body according to the ISO 14046 Standard. 3- The carbon credits of VCS and GS registered projects are verified by an accredited organization according to Verified Carbon Standard and Gold Standard requirements.	2023 Integrated Annual Report (Environmental Assets Section)

		COMPLIANCE STATUS
		YES	NO	PARTLY	INTERESTLESS	EXPLANATION	REPORT INFORMATION ON PUBLICLY DISCLOSED INFORMATION
	B. Evironmental Principles
B1	The Company has disclosed its policies and practices in the field of environmental management, action plans, environmental management systems (known with ISO 14001 standard), and programs to the public.	Yes					https://www. aydemyenilenebilir.com.tr/ info/30/our-integrated management-system policy 2023 Integrated Annual Report (Environmental Assets Section)
B2	The scope of the report, the reporting period, the reporting date, and the limitations regarding the reporting conditions were disclosed to the public regarding the environmental reports prepared to provide information on environmental management.	Yes					2023 Integrated Annual Report (Introduction)
B3	Stated A2.1.
B4	Environmental targets included in the rewarding criteria within the scope of performance incentive systems on the basis of stakeholders (such as board members, managers and employees) are disclosed to the public.		No.			Environmental targets included in these rewarding systems are not disclosed to the public.
B5	How priority environmental issues are integrated into business targets and strategies has been disclosed to the public.	Yes					2023 Integrated Annual Report (Environmental Assets, Value Creation Structure Section)
B6	Stated A2.4.

		COMPLIANCE STATUS
		YES	NO	PARTLY	INTERESTLESS	EXPLANATION	REPORT INFORMATION ON PUBLICLY DISCLOSED INFORMATION
B7	How environmental issues are managed and integrated into business targets and strategies throughout the company's value chain, including the operational process, suppliers and customers has been disclosed to the public.	Yes					2023 Integrated Annual Report (Social Assets Section)
B8	Whether the environment organizations and non-governmental organizations are involved in the policy making processes or not, and the collaborations with these institutions and organizations have been disclosed to the public.			Partially		Policy formulation actively in the processes no role was taken. Institutions and organizations on Environment collaborations with the relevant link is taking.	https://www. aydemyenilenebilir.com.tr/ our-news
B9	In the light of environmental indicators (greenhouse gas emissions (Scope-1 (Direct), Scope-2 (Indirect energy), Scope-3 (Other indirect), air quality, energy management, water and wastewater management, waste management, biodiversity impacts), comparable information on its environmental impacts are disclosed to the public.	Yes					2023 Integrated Annual Report (Environmental Assets Section)
B10	Standards, protocols, methodologies, and reference year details used to collect and calculate data are disclosed to the public.	Yes					2023 Integrated Annual Report (Environmental Assets Section)

		COMPLIANCE STATUS
		YES	NO	PARTLY	INTERESTLESS	EXPLANATION	REPORT INFORMATION ON PUBLICLY DISCLOSED INFORMATION
B11	The status of the environmental indicators for the reporting year (increase or decrease) in comparison with previous years has been described.	Yes					2023 Integrated Annual Report (Environmental Assets Section)
B12	Short and long-term targets to reduce environmental impact are set and these targets are announced together with information on their progress in relation to the goals set in the past years.	Yes					2023 Integrated Annual Report, (Environmental Assets Section)
B13	The strategy and actions to combat the climate crisis are announced.	Yes				As a signatory to the Science Based Targets initiative (SBTi), a common strategy for the climate crisis is being implemented.	https://www. aydemyenilenebilir.com. tr/news/102/we-are the-signatories-of-the international-science based-targets-initiative sbti
B14	In order to prevent or minimize the potential negative impact of products and/ or services on the environment, programs or procedures have been established and disclosed to the public	Yes					https://www. aydemyenilenebilir.com.tr/ info/44/environmental policy
	Actions for reducing greenhouse gas emissions of third parties (eg. suppliers, subcontractors, dealers, etc.) are taken and these actions have been disclosed to the public.		No.			No activities are carried out for third parties in relation to the subject matter.
B15	The environmental benefits / profits and cost savings provided by projects and initiatives carried out to reduce environmental impact are announced.	Yes					2023 Integrated Annual Report (Environmental Assets Section)

		COMPLIANCE STATUS
		YES	NO	PARTLY	INTERESTLESS	EXPLANATION	REPORT INFORMATION ON PUBLICLY DISCLOSED INFORMATION
B16	The total energy consumption (natural gas, diesel, gasoline, LPG, coal, electricity, heating, cooling) data are announced as Scope-1 and Scope-2.	Yes					2023 Integrated Annual Report, (Environmental Assets Section, Performance Tables)
B17	Information on electricity, heat, steam and cooling generated and consumed in the reporting year is provided.	Yes				The company only generates renewable energy.	2023 Integrated Annual Report (About Aydem Renewables Section)
B18	Efforts to increase the use of renewable energy and transition to zero or lowcarbon electricity have been made and disclosed to the public	Yes					2023 Integrated Annual Report (Value Creation Structure, Financial Assets Section)
B19	The renewable generation of energy and the usage data are announced	Yes					2023 Integrated Annual Report (About Aydem Renewables, Operational Assets Section)
B20	Energy efficiency projects are realized and the amount of energy consumption and emission reduction gained by means of these studies are announced.	Yes					2023 Integrated Annual Report (Environmental Assets Section)
B21	Water consumption, the amount of water withdrawn from underground or above ground, if any, recycled and discharged, sources and procedures are disclosed to the public.	Yes					2023 Integrated Annual Report (Environmental Assets Section)
B22	It is publicly disclosed whether its operations or activities are included in any carbon pricing system (Emissions Trading System, Cap & Trade or Carbon Tax).	Yes					2023 Integrated Annual Report (Environmental Assets Section)

and responsible parties have been disclosed to

the public.

		COMPLIANCE STATUS
		YES	NO	PARTLY	INTERESTLESS	EXPLANATION	REPORT INFORMATION ON PUBLICLY DISCLOSED INFORMATION
B23	Information on carbon credits accumulated or purchased during the reporting period has been disclosed to the public.	Yes				Within the scope of carbon trading, carbon reduction certificates are offered to voluntary carbon markets.	2023 Integrated Annual Report (Environmental Assets Section)
B24	If carbon pricing is applied within the Company, the details are disclosed to the public.		No.			There are no carbon pricing activities disclosed to the public within the partnership.
B25	The platforms where the Incorporation discloses its environmental information are publicly disclosed.	Yes					2023 Integrated Annual Report (Environmental Assets Section) https://www. aydemyenilenebilir.com. tr/news/78/with-our success-at-cdp-we-are among-the-leaders-of our-industry
	C. Social Principles
	C1. Human Rights and Employee Rights
C1.1	A Corporate Human Rights and Employee Rights Policy has been established in line with the Universal Declaration of Human Rights, ILO Conventions ratified by Turkey and other relevant legislation, the responsible parties for the implementation of the policy have been identified and the policy	Yes					https://www. aydemyenilenebilir.com. tr/info/69/human-rights policy

				COMPLIANCE STATUS
		YES	NO	PARTLY	INTERESTLESS	EXPLANATION	REPORT INFORMATION ON PUBLICLY DISCLOSED INFORMATION
C1.2	Considering supply and value chain impacts, fair labor, improvement of labor standards, women's employment and inclusion issues (such as non-discrimination based on gender, race, religion, language, marital status, ethnic identity, sexual orientation, gender identity, family responsibilities, union activities, political opinion, disability, social and cultural differences, etc.) are included in the employee rights policy.	Yes					2023 Integrated Annual Report (Human Resources Assets Section) https://www. aydemyenilenebilir.com. tr/info/69/human-rights policy Aydem Renewables human resources policy
C1.3	Measures taken along the value chain to protect the rights of segments sensitive to certain economic, environmental, social factors (low-income segments, women, etc.) or minority rights/ equal opportunities are disclosed to the public.	Yes					2023 Integrated Annual Report (Human Resources Assets Section) https://www. aydemyenilenebilir.com. tr/info/69/human-rights policy
C1.4	Progress in preventing and remedying discrimination, inequality, human rights violations, forced labor and child labor was made public.	Yes					2023 Integrated Annual Report (Human Resources Assets Section) https://www. aydemyenilenebilir.com. tr/info/69/human-rights policy

				COMPLIANCE STATUS
		YES	NO	PARTLY	INTERESTLESS	EXPLANATION	REPORT INFORMATION ON PUBLICLY DISCLOSED INFORMATION
C1.5	Investments in employees (training, development policies), compensation, fringe benefits, right to unionize, work/life balance solutions and talent management are included in the employee rights policy.	Yes					Aydem Renewables human resources policy
	Mechanisms for resolving employee complaints and disputes have been established and dispute resolution processes have been determined.	Yes					2023 Integrated Annual Report (Human Resources Assets Section) (Ethics Hotline Applications)
	Activities carried out during the reporting period to ensure employee satisfaction were disclosed to the public.	Yes					2023 Integrated Annual Report (Human Resources Assets Section)
C1.6	Occupational health and safety policies have been established and disclosed to the public.	Yes					https://www. aydemyenilenebilir.com. tr/info/45/occupational health-and-safety-policy 2023 Integrated Annual Report (Value Creation Structure, Human Resources Assets Section)
	Measures taken to prevent occupational accidents and protect health, and accident statistics are publicly disclosed.	Yes					2023 Integrated Annual Report (Human Resources Asset Section, Performance Tables)
C1.7	Personal data protection and data security policies have been established and disclosed to the public.	Yes					https://www. aydemyenilenebilir.com. tr/info/26/protection-of personal-data

		COMPLIANCE STATUS
		YES	NO	PARTLY	INTERESTLESS	EXPLANATION	REPORT INFORMATION ON PUBLICLY DISCLOSED INFORMATION
C1.8	Ethics policy has been established and disclosed to the public	Yes					https://www. aydemyenilenebilir.com.tr/ info/12/code-of-conduct and-business-principles
C1.9	Explains its activities within the scope of social investment, social responsibility, financial inclusion and access to finance.	Yes					2023 Integrated Annual Report (Social Assets Section)
C1.10	Informative meetings and training programs were organized for employees on ESG policies and practices.	Yes					2023 Integrated Annual Report (Human Resources Assets Section)
	C2. Stakeholders, International Standards and Initiatives
C2.1	A customer satisfaction policy on the management and resolution of customer complaints has been prepared and disclosed to the public.		No.			Customer satisfaction due to company activities Although it is not measured, company activities are always based on unconditional customer satisfaction.
C2.2	Information on communication with stakeholders (which stakeholder, topic and frequency) is disclosed to the public.	Yes					2023 Integrated Annual Report (Value Creation Structure Section)
C2.3	International reporting standards adopted in reporting are explained.	Yes				GRI Standards, CDP Climate Change and Water Security reporting, ISO 14064-1, ISO 14046, ISO 9001, ISO 45001, ISO 5001, ISO 14001, ISO 27001	2023 Integrated Annual Report (Environmental Assets, Value Creation Structure Section)

				COMPLIANCE STATUS
		YES	NO	PARTLY	INTERESTLESS	EXPLANATION	REPORT INFORMATION ON PUBLICLY DISCLOSED INFORMATION
C2.4	Principles adopted in relation to sustainability, international organizations, committees and principles of which the Company is a signatory or member are disclosed to the public.	Yes					2023 Integrated Annual Report (About Aydem Renewables, Value Creation Structure, Environmental Assets, Human Resources Assets Section) https://www. aydemyenilenebilir.com. tr/news/102/we-are the-signatories-of-the international-science based-targets-initiative sbti
C2.5	Improvements and activities are conducted in order to be listed in the sustainability indices of Borsa İstanbul and/ or international index providers.	Yes				As a participant of the United Nations Global Compact (UNGC) and a signatory of the Science-Based Targets initiative (SBTi), we pursue sustainability in all our investments and activities. With our successful performance in this area, we were included in the BIST Sustainability Index.	https://www. aydemyenilenebilir. com.tr/haber/126/bist surduruleb-l-rl-k-endeks ndey-z
	D. Corporate Governance Principles
D1	Stakeholders' opinions were consulted in determining the measures and strategies in the field of sustainability.	Yes					2023 Integrated Annual Report (Value Creation Structure Section)
D2	Social responsibility projects, awareness raising events and trainings were carried out to raise awareness on sustainability and its importance.	Yes					2023 Integrated Annual Report (Social Assets Section)

Sustainable (Green) Financing Framework

Aydem Renewables' power plants are located in the Black Sea, Marmara, Mediterranean and Aegean regions. Aydem Renewables presents the following impact criteria as part of its annual reporting where appropriate.

Renewable Energy Production

Aydem Renewables has made significant improvements in renewable energy generation and business processes in line with the Sustainable Development Goals in 2023.

Information on the 2023 renewable energy facilities constructed and upgraded during the reporting period and future periods are given below.

Hybrid Projects:

· In January 2023, pre-feasibility approval was obtained from the State Hydraulic Works (DSİ) for the Göktaş HPP hybrid floating SPP project. In February, the 82.15 MWm hybrid SPP project in Uşak was accepted by the Ministry. In March, applications were made to EMRA for additional hybrid projects and in the same month, pre-feasibility approval was obtained from DSİ for the Kemer HPP hybrid floating SPP project. In March, the 16.95 MWm hybrid SPP project to be commissioned in Söke was included in the existing WPP generation license, making it a multi-source electricity generation plant.
· On February 23, 2023, a hybrid plant was established by adding an Auxiliary Source Solar Power Plant to the existing Uşak Wind Power Plant. By adding an 82.15 MWm SPP to the existing Uşak WPP, the goal of continuing production with solar energy when there is no wind was realized. In this way, an alternative production will be made with dual energy sources that ensure energy continuity in the plant and continuity in energy production will be ensured. With the Hybrid Power Plant, the capacity utilization rate of the plant has also increased. According to the analyses, it is projected that the GES will meet the annual energy needs of 54,700

households or 218,800 people with the energy generated from its annual production, and will also reduce approximately 104,121 tons of CO² emissions annually.

· The installation of 82.2 MWm (Uşak WPP Hybrid SPP) was completed in 2022 and the Ministry Acceptance was realized on 23.02.2023. The first of the 114 MWm capacity increase projects planned for 2023 is at Uşak WPP with 66 MWm, which was completed with the Ministry's acceptance on 31.08.2023 and started electricity generation.

01 Continuity in energy production

The addition of a SPP to Uşak WPP ensured the continuity of energy generation at the plant.

03 54,700 households' annual energy needs capacity

The hybrid plant will meet the annual energy needs of 54,700 households or 218,800 people.

· The plant utilizes single axis construction and bifacial panel technology that follows the sun. This technology aims to generate 20% more energy compared to monofacial solar power plants with fixed construction systems. Thanks to the single axis construction system that moves according to the sun's rays at sunrise, energy is produced efficiently throughout the day. These improvements strengthen Aydem Renewables' leadership in the renewable energy sector and its sustainability commitments, while taking important steps towards reducing environmental impact and increasing energy efficiency. These developments reflect the company's contribution to a sustainable future and its innovative approach in this field.

02 104,121 tons of CO²

104,121 tons of CO² emission reduction The hybrid power plant will reduce CO² emissions by 106,468 tons.

04 20% more energy production

The bifacial panel technology used in the hybrid power plant will be able to generate 20% more energy.

· In April 2023, an 18.88 MWm hybrid SPP project in Yalova was included in the existing WPP generation license.
· In August 2023, the Environmental Impact Assessment (EIA) processes for pre-license projects were initiated. In September, the 12.09 MWm hybrid SPP project in Akıncı was included in the existing HPP generation license, and the commissioning of a multi-source electricity generation plant was planned. In addition, EIA processes and property and other permitting processes for investment projects were carried out.
· In December 2023, Aydem Renewables integrated the 1.44 MWm capacity hybrid Floating SPP project in Dalaman into its existing HPP generation license. This integration enabled more efficient and environmentally friendly energy generation through the combination of renewable energy sources, while at the same time helping Aydem Renewables to diversify and strengthen its energy generation portfolio.

Sustainable (Green) Financing Framework

Projected capacities

· Uşak Hybrid SPP-1, which was among the projects awaiting permits in 2022, was commissioned in 2023. Percentage of completion of permits for other projects awaiting permits: Yalova 60%, Söke WPP Hybrid SPP 50%, Feslek HPP Hybrid SPP 70%, Akıncı 60%, Koyulhisar 50%.
· Planning for the following years;
· Söke WPP Hybrid SPP: 16.9 MWp
· Yalova WPP Hybrid SPP: 18.9 MWp
· Akıncı HPP Hybrid SPP: 12.1 MWp
· Koyulhisar HPP Hybrid SPP: 7.7 MWp
· Uşak WPP Hybrid SPP-2: 41.6 MWp
· Feslek HPP Hybrid Canal SPP: 0.3 MWp
· Dalaman HPP Hybrid Floating SPP: 1.4 MWp
· Adiguzel HPP Hybrid Floating SPP: 24.1 MWp
· Göktaş HPP Hybrid Floating SPP: 5.6 MWp

With the completion of the hybrid projects envisaged in the list, the total installed capacity (including 82.15) will increase by 210.80 MWp.

Capacity Expansion Projects

· In August, the ministry acceptance of 2 additional turbines (2 x 6 MWm) to Uşak WPP was made and the 12 MWm capacity increase project was included in the existing generation license of Söke WPP, which was licensed on 24.10.2019. 36 MWm wind capacity increase investment is planned to be completed in 2024, 73 MWm hybrid solar investment and 3 MWm capacity expansion investment is planned to be completed in 2025. The total cost of 373.8 MWm of additional installed capacity investments, excluding 500 MWm of wind, solar and storage facilities, is expected to be approximately USD 294.2 million. The breakdown of the total investment cost is planned to be USD 151 million for hybrid investments and the remaining USD 143 million for capacity expansion projects.
· In Uşak WPP, a 66 MWm capacity increase was completed and the plant was commissioned. This capacity increase further expands Aydem Renewables' renewable energy portfolio and increases its diversity and capacity in energy generation. This capacity increase in Uşak reinforces Aydem Renewables' commitment to increase energy production and reduce environmental impact in line with sustainable development goals.
· The Investment Incentive Certificate application made by our Company to the Ministry of Industry and Technology of the Republic of Turkey within the scope of the general-revision 12 MWm power increase investment project for electricity generation, transmission and distribution in the WPP project with a total wind license installed capacity of 49.5 MWm in Aydın-Söke was approved on 22.08.2023. In this context, the Investment Incentive Certificate numbered 557600 was issued on behalf of our Company for the investment project to be realized with domestic capital.

· EIA, TEA and EMRA processes for Uşak WPP, Yalova WPP and Söke WPP have been completed. Acceptance for Uşak WPP is 66 MWm/52.8 MWe for 11 turbines in 2023. Söke WPP was accepted in the last quarter of 2023.
· The construction of the 12 MWm Söke WPP Capacity Increase Project started during the reporting period and was completed, commissioned and accepted by the Ministry in December 2023.
· Aydem Renewables' installed capacity increased by 160 MWm at the end of the year. This increase is considered as a significant leap in the company's power generation capacity and strengthens Aydem Renewables' position in the renewable energy sector. Hybrid power plant projects are strategically important to diversify and increase the reliability of energy production, and this project represents an important step in achieving these goals.

Electricity Generation Plants with Storage

· Pursuant to EMRA Board decisions dated May 11, 2023, our pre-license application for a total capacity of 500 MWm (400 MWm SPP and 100 MWm WPP) for generation facilities with storage has been accepted and pre-licenses for 200 MWm Atlantis 1 SPP, 200 MWm Atlantis 2 SPP and 100 MWm Kızılağaç WPP have been obtained and investment activities have started.
· Within the scope of the Kizilagacac DRES project, the installation of a wind measurement mast for wind measurement analysis has been completed and wind measurements have started. The data to be obtained here will guide the feasibility studies of the plant and will be used to increase the efficiency of the project. In addition, land positioning studies for the Atlantis 2 and Atlantis 1 SPP projects are ongoing. These studies are critical for realizing the projects in the most suitable locations and ensuring maximum efficiency.

Energy Efficiency

· The steps taken within the scope of Aydem Renewables' "Lighting Transformation Project" in 2023 included the use of new technologies to save energy. In 2022, the project design and feasibility studies of the project were completed, and in 2023, the procurement processes were advanced and LED luminaires were supplied. With the completion of the procurement process, the existing luminaires were replaced with LED luminaires. This transformation made a significant contribution to Aydem Renewables' energy efficiency and sustainability targets. The use of LED luminaires has helped to reduce energy consumption and thus reduce energy costs.
· In 2023, the benefits provided by the Grate Cleaning Machine continued within the scope of the efficiency project carried out at Aydem Renewables' Feslek Hydroelectric Power Plant (HPP). This project focuses on ensuring the continuity of production by effectively cleaning the garbage and other foreign materials coming to the grid of the power plant.
· Aydem Renewables successfully advanced the A+++ Energy Transformation and Lighting System Revision Projects in 2023. The A++ Energy Transformation Project was planned in 2021 and 2022, project design and feasibility studies were completed, and implementation started in 2022. In 2022, white goods replacements were completed at 12 HPP facilities such as Dalaman HPP-1-2-3-4- 5, Göktaş-1 HPP, Göktaş-2 HPP,

Sustainable (Green) Financing Framework

Mentaş HPP, Toros HPP, Akıncı HPP, Çırakdamı HPP and Dereli HPP, and in 2023, replacements were targeted and realized at 8 facilities such as Bereket HPP-1-2, Feslek HPP, Gökyar HPP, Adıgüzel HPP, Kemer HPP, Düzce Aksu HPP and Koyulhisar HPP.

· Thanks to regular maintenance at the power plants, the plants are kept ready for production at all times and water is used in the most efficient way in energy production. Such maintenance increases the operational efficiency of power plants and supports the efficient use of water resources. In addition, production losses due to incidental reasons in power plants were determined to be very low in 2023. This shows the reliability of the power plants and their continuity in energy generation.
· During the reporting period, a total of 39.59 tons of hazardous and 12.07 tons of non-hazardous waste generated as a result of operations was recycled 100% under appropriate conditions. Thanks to the waste recycled and recovered, 9860 kWh of energy was saved and 337.85 Kg of greenhouse gas emissions were prevented. In addition, thanks to the recycling of 1.6 tons of paper and cardboard, approximately 30 trees were saved from being cut down.

Sustainability Efforts

· Climate and environmental management activities are carried out within the framework of internationally recognized systems and practices such as ISO 14001 Environmental Management System and ISO 50001 Energy Management System. System standards are certified through periodic external audits. Climate and environmental performance is included in the company's corporate performance evaluation and employee suggestion systems. These performance indicators are also evaluated in the annual individual targets of employees and have an impact on remuneration in order to incentivize managers.
· In 2023, a total of TL 5,807,000 in environmental expenditures was realized, of which TL 200,000 was investment and TL 5,607,000 was operational, and there were no fines for non-compliance with legal regulations on climate and environment. In addition to its activities, Aydem Renewables supports associations and initiatives such as Sustainable Development

Association (SKD), Sustainable Production and Consumption Association (SÜT-D), United Nations Global Compact (UNGC), International Science Based Targets initiative (SBTi), Green Hydrogen Association (YHD), Turkish Wind Energy Association (TÜREB).

· Aydem Renewables made an important innovation in the carbon and water footprint calculation processes in 2023. These calculations, which were carried out at the end of the year in previous years, were started before the first nine months of 2023 were completed. This early start enabled the company to monitor and manage its environmental performance more effectively. Performing carbon and water footprint calculations earlier in the year allows the company to continuously monitor its performance in these areas and intervene quickly when necessary. This enables Aydem Renewables to take more conscious and responsible steps in the field of environmental sustainability.

· Aware of its active role in combating and adapting to climate change, Aydem Renewables makes significant contributions to the environment and society in this field and increases its efforts in this direction. In this context, Aydem Renewables strategically develops investments in Hydroelectric Power Plants (HPP), Wind Power Plants (WPP), Hybrid Solar Energy (SPP) and Geothermal Power Plants (GPP). These investments are important steps towards expanding the company's sustainable energy portfolio and reducing environmental impact. Hybrid SPP Investments aim to provide continuous and reliable energy by reducing the disadvantage caused by the discontinuity of the main energy source of the power plant with the efficient generation of electricity from sunlight by solar panels. These systems provide a higher efficiency in energy production and sustainability in energy.
· SBTi has classified Aydem Renewables' scope 1 and 2 targets as compatible with the 1.5°C pathway. This classification confirms that the company's strategies

to reduce its carbon footprint are in line with internationally recognized scientific targets. Aydem Renewables is committed to reduce absolute scope 1 and 2 greenhouse gas emissions by 51% by 2032 compared to the base year of 2022. This target demonstrates the concrete steps the company has taken to combat climate change and the responsibility it has assumed in this area.

· At Uşak Wind Power Plant (WPP), a wastewater analysis was conducted in accordance with the Water Pollution Control Regulation (WPCR). This analysis is part of the plant's gray water footprint calculations and provides important data on the effective management of water pollution and wastewater. · Thanks to regular maintenance at the power plants, the plants are kept ready for production at all

times and water is used in the most efficient way in energy production. Such maintenance increases the operational efficiency of power plants and supports the efficient use of water resources. In addition, production losses due to incidental reasons in power plants were determined to be very low in 2023. This shows the reliability of the power plants and their continuity in energy generation.

· Zero waste certificates were obtained for all power plants in production, and waste management was continued within this framework.
· The "Vegetable Waste Oil Collection Project" was initiated to raise awareness and prevent vegetable waste oil from being poured into sinks after cooking at home.
· The project "Collecting expired medicines in households" aims to reduce the harmful effects of medicines on the environment.
· On June 5, World Environment Day, a "Plogging Project" was organized. In this event, employees of the Company's 25 power plants and headquarters in 10 provinces took 723,919 steps and collected 2.5 tons of recyclable waste.

Sustainable (Green) Financing Framework

· In 2023, soil protection projects were prepared for agricultural lands and permitting processes were carried out for forest lands. Hybrid project investments aim to generate more energy by utilizing the used lands with the highest efficiency.
· In 2023, no environmental accidents occurred.

· Within the scope of Uşak Wind Power Plant (WPP) capacity increase projects, soil protection processes were meticulously carried out for the construction of six turbines. In addition, soil protection processes were carried out for the Akıncı Hybrid Solar Power Plant (SPP) project.

· Necessary resources have been allocated for the activities on biodiversity detailed below. The following projects were implemented in 2022 and their activities continued in 2023:

» "Beekeeping Activities Monitoring and Support Project" Within the scope of the "Beekeeping Activities Monitoring and Support Project" realized by Aydem Renewables as a first in Turkey, an important study was initiated in Söke to examine the interactions between Wind Power Plants (WPP) and beehives. In 2023, hive placements were completed and the progress of the projects is being monitored.

» "Bat Houses Project" Aydem Renewables focused on biological methods in the fight against agricultural pests and realized the "Bat House" project in Aydın and Muğla for bats, which have an important role in the ecosystem.
» "Photo Trap Project" Aydem Renewables initiated the "Photo Trap Project" in the forested area around Göktaş 1 Hydroelectric Power Plant in Adana. This project is designed to observe wildlife and understand the biodiversity in the region. The photo traps placed around

Göktaş 1 Hydroelectric Power Plant operate 24 hours a day and night. These devices keep records of wild animals and are used to track their movements in their natural habitat.

» Areas of operation and operations are designed in a way that does not harm biodiversity and necessary measures have been taken to protect existing biodiversity within the framework of Environmental Policies.
» Biodiversity trainings on "Biodiversity and Biotrafficking in Turkey" and "General Information on Birds from a Bird Detective's Perspective" were provided to all plant employees by consultants or academics
» Biodiversity monitoring and conservation programs, mammalogy and ornithology monitoring, afforestation and planting activities are carried out and the results are regularly monitored.

Allocation Report

Distribution Reported by Eligibility Criteria

	Allocated Amount (million USD)	Allocated Amount (million Euro)	Allocated Amount (million TL)	US dollar equivalent (million USD)	Project Number of
Hybrid Energy Investments (Solar Energy)	58.5	0.1	68.8	63.1	6
Capacity Expansion (Wind Energy)	41.5	0.9	116.8	48.8	3
Total Investment	100.0	1.0	185.5	111.8	9

It has been subjected to limited assurance by the Independent Audit Firm.

2023 Overview of the Turkish Economy and Renewable Energy Sector

—Macroeconomic Outlook

Global economy

2023 was a year in which the slowdown in global economic activity came to the fore due to the ongoing interest rate hikes by central banks to combat inflation and the tightening in financial conditions, and the restrictive effects of tightening monetary policies, especially on manufacturing sector production, were more pronounced in advanced economies.

Despite the slowdown in global economic activity and inflation, labor markets remained resilient. The possibility of a soft landing in the global economy has increased.

The ongoing Russia-Ukraine war and comprehensive sanctions against Russia by Western countries, as well as the Israeli-Palestinian conflict that started in October 2023, were the main topics on the agenda, while the geopolitical risks in the Red Sea towards the end of the year opened a new axis.

Following the bank failures in the US and the bank bailout operation in Switzerland in the first quarter of the year, the downside risks to the global growth outlook were mitigated by the rapid and effective steps taken by central banks and regulatory authorities to contain the risks that may arise in the banking sector.

The IMF's Global Economic Outlook, published in January 2024, noted that inflation fell faster than expected in many regions at a time when supply-

Despite the slowing global economy, the Turkish economy displayed a strong growth performance in 2023.

side problems were being resolved globally and restrictive monetary policies were in place. Against this backdrop, the IMF forecasts global economic growth at 3.1% in 2023, driven by greater-than-expected resilience in the US and some large emerging economies, as well as support in China.

Turkish economy

Despite the slowing global economy, the Turkish economy displayed a strong growth performance in 2023.

In the first half of 2023, despite the slowdown in the global economy, the weakening in many of our main export markets and the negative effects of the major earthquakes that hit Turkey in February, the Turkish economy grew by 3.9% year-on-year, supported by private and public consumption as well as investment. The rapid and effective measures implemented helped maintain the momentum of economic activity while limiting the negative impact of the earthquakes on growth. In the third quarter, with the acceleration in economic activity, growth of 4.7% was recorded in the first three quarters. The Turkish economy is expected to grow by around 4% in 2023, close to the Medium Term Program (MTP) target.

In 2024, although the lagged effects of the monetary tightening process will be more evident, credit support to boost exports and investments and the increase in the minimum wage are expected to support growth through the domestic demand channel.

In 2023, high levels of inflation were observed due to wage increases, exchange rate developments, rising tax rates, food prices, rigidity in services inflation and the strong domestic demand outlook. CPI closed 2023 at 64.77%, in line with the MTP target of 65%.

In the second quarter of the year, with the new economic administration, effective and decisive steps were taken to combat inflation and efforts were initiated to strengthen financial stability through fiscal policy and structural reforms in addition to monetary policy. As a result of the effective steps taken by the economic administration, international credit rating agencies revised Turkey's sovereign credit rating outlook upwards, while the country's CDS risk premium declined significantly.

RENEWABLE ENERGY SECTOR IN TURKEY

According to current statistics, Turkey has the 12th renewable energy capacity in the world and the 5th in Europe.

In recent years, Turkey has focused on renewable energy and has differentiated itself from other countries. By the end of 2023, Turkey's installed capacity will reach 106.6 GW, an increase of 2.7% compared to 2022. In 2023, the share of renewable resources in Turkey's total installed capacity is 59.2 GW with 55.52%. Compared to 2022, total installed capacity increased by 2.9 GW, of which 2.8 GW is composed of renewable resources.

In 2022, electricity prices in Turkey and Europe increased due to the impact of the war in 2022, and reached the expected levels in 2023 as a result of the war losing its impact and the decline in commodity prices as a result of the measures taken.

In 2023, new investments and regulations continued to support the expansion of the energy sector with new technologies and players. On the other hand, domestic investors have recently started to realize battery factory projects in Turkey and solar panel cell production plant investments have started to be completed.

While hybrid power plants are being commissioned, storage power plant investments have also started to enter the energy market agenda. All these efforts are expected to make a significant contribution to Turkey's energy independence in the short, medium and long term by enabling Turkey to benefit more from its renewable energy potential.

Turkey set out its commitment to green transformation in its National Energy Plan announced in May 2022. The National Energy Plan sets out the targets to be met by 2035 to ensure the realizability of the 2053 Net Zero Emission vision. According to the scenario prepared and publicized by the Ministry of Energy and Natural Resources, the installed capacity of electricity increases to 189.7 GW in total, 52.9 GW in solar energy, 29.6 GW in wind energy and 7.2 GW in nuclear energy in the 2020-2035 period. According to the same model, the share of intermittent renewables in electricity generation rises to 34.2%, while the share of renewables rises to 54.7%. In electricity installed capacity, the share of intermittent renewables is projected to reach 43.5% and the share of renewables 64.7%. According to this scenario, solar energy will have the largest share in renewable installed capacity.

"Notable targets in the National Energy Plan include reducing dependence on thermal energy and sustainably increasing the share of renewable energy in electricity generation after 2030.

There are currently 20 companies in Turkey that generate renewable energy. While these companies mainly operate hydroelectric power plants, there are few large market players investing only in wind, solar and geothermal power plants.

Improved storage techniques, diversification of import sources and flexibility in the natural gas network strengthen Turkey's position in negotiations with suppliers. Europe's expansionist approach to hydrogen production investments and Germany's motivation to finance hydrogen projects could also accelerate Turkey's differentiation as a strong green hydrogen supplier for major EU countries.

The Turkish energy market value chain has recently been the subject of numerous mergers and acquisitions. The growth of the electric vehicle market will also play a role in the future of the energy sector. The Turkish EV charging market has growth potential and many energy, technology and automotive companies have started to focus on battery production facilities.

Investments and Areas of Activity

Aydem Renewables operates a total of 25 renewable energy power plants, including 20 hydroelectric power plants (HPP), 3 wind power plants (WPP), 1 hybrid solar power plant (SPP) and 1 geothermal power plant (GPP). The Company's power plants are located in the Black Sea, Marmara, Mediterranean and Aegean regions. As of December 31, 2023, the Company's installed capacity is 1,180 MWm, of which approximately 72% is composed of HPPs, 20% is composed of WPPs, 7% is hybrid SPP and the remaining portion is GPP (<1%). Aydem Renewables reached an availability rate of 98.68% in its power plants in 2023 with the quality and efficient equipment it uses, strong information and infrastructure systems that it continuously develops with a focus on digitalization, and operation and maintenance teams formed with highly qualified human capital.

The portfolio includes 20 HPPs spread across 4 different hydrological regions, each with different flow characteristics. As of December 31, 2023, the installed capacity of the Company's HPPs is 852.13 MWm. Of the installed capacity of HPPs, 20% (170 MWm) is located in the Aegean Region, 44% (375 MWm) in the Mediterranean Region, 31% (260 MWm) in the Black Sea Region and approximately 5% (46 MWm) in the Marmara Region. Considering that different regions experience different seasonal variations and hydrological conditions, this regional diversity provides Aydem Renewables with an advantage in terms of minimizing the total production from HPPs throughout the year.

Aydem Renewables contributes to the clean energy transformation of our country with 3 WPPs in Aydın, Uşak and Yalova.

In 2023, Aydem Renewables increased its production diversity with wind energy capacity increase investments and hybrid solar energy investments. These investments and the projects included in the investment plan are aimed at expanding the company's energy generation capacity and strengthening its presence in renewable energy by diversifying within the scope of risk management. For Wind Power Plants (WPP), the Company included capacity increase projects in its investment program.

116 million US dollars

Total expenditure on investments commissioned by the end of 2023

Improvement

Efforts to increase the effectiveness and efficiency of BPP and GPP facilities

In 2023, 82 MWm SPP and 78 MWm WPP investments with a total installed capacity of 160 MWm were accepted by the Ministry and commissioned, contributing to total energy generation. This growth corresponds to a 15.7% increase in the company's installed capacity.

The total cost of investments completed and commissioned in 2023 is approximately USD 116 million.

In 2023, Aydem Renewables realized a series of improvements in the operation and maintenance activities of existing WPP and GPP facilities. These improvements were made to ensure that the facilities operate more effectively and efficiently and to minimize potential failures. Considering the long lead times of the equipment, critical materials have been backed up. This approach is an important step to prevent downtime in case of possible breakdowns and to ensure production continuity. Maintenance is carried out regularly according to the periodic maintenance schedule. This periodic maintenance ensures that the facilities are regularly checked and

intervened quickly when necessary, increasing operational efficiency. Turbine equipment is continuously monitored through the Condition Monitoring System (CMS). Thanks to this system, it is aimed to prevent major failures by closely monitoring the condition of the equipment. Electrical equipment is controlled with thermal cameras. The controls performed with thermal cameras, including the condition of connections and isolations, aim to prevent major damage to the equipment.

Investments and Areas of Activity

In 2023, Aydem Renewables' subsidiary Sarı Perakende Enerji Satış ve Ticaret Inc. obtained a preliminary license for the 100 MW capacity WPP and 100 MWh battery and 400 MW capacity SPP and 400 MWh battery integrated storage plant projects. In June 2023, an application was submitted to the Technical Interaction Analysis process for the Kızılağaç WPP project. This analysis assesses the impacts of the project on the energy grid and ensures its technical compatibility. In August 2023, Environmental Impact Assessment (EIA) processes were initiated for these projects. Within the scope of the pre-license projects, detailed reviews and assessments were made on ownership and other permitting processes. A wind measurement mast has been erected for the WEPP with Storage project, and wind data will be measured for a minimum of one year in the area where the plant is planned to be installed with this 100-meterhigh mast and analyses related to the project will be carried out.

Significant progress has been achieved in the Environmental Impact Assessment (EIA) and other legal processes for Aydem Renewables's hybrid solar power plants and wind power plants planned to be commissioned.

Aydem Renewables' investment projections for a total of 714 MWm renewable installed capacity and 500 MW/500 MWh integrated storage renewable energy generation plant planned until the end of 2026 are shaped in line with the targets of increasing energy production diversity and establishing continuity in energy supply. The impact of these projects on the overall investment strategy is based on diversifying the company's generation portfolio to be minimally affected by climatic conditions. This strategy is critical to increase Aydem Renewables' competitiveness in the energy sector and to create a more balanced and sustainable energy generation portfolio. Diversification of energy generation sources makes the company more resilient to different climatic conditions and market fluctuations and aims to guarantee continuous energy supply. This approach is also in line with the targets of increasing the efficiency of energy generated from renewable energy sources and reducing environmental impact, demonstrating Aydem Renewables' commitment to sustainable energy. Planned until 2026, these projects play an important role in terms of both economic and environmental sustainability as part of the company's long-term energy strategies.

Significant progress was made in the Environmental Impact Assessment (EIA) and other legal processes for Aydem Renewables' hybrid solar and wind power plants.

· A positive EIA decision was taken on January 17, 2023 for the 16.95 MW hybrid SPP project in Söke.
· A positive EIA decision was taken on May 10, 2023 for the 7.69 MW hybrid SPP project planned at Koyulhisar HPP.
· The EIA positive decision was taken on June 1, 2023 for the planned 88 MW capacity increase project at Uşak WPP.
· The EIA positive decision was taken on July 21, 2023 for the 12.09 MW capacity hybrid SPP project planned at Akıncı HPP.
· For the hybrid Floating SPP project with a capacity of 1.44 MW planned in Dalaman HPP, EIA is not required decision was taken on October 31, 2023.
· EIA processes are ongoing for Adıgüzel HPP hybrid floating SPP project and Göktaş HPP hybrid floating SPP project.
· The EIA processes initiated for the 100 MW RES with storage and 400 MW SPP with storage projects are ongoing.
· EMRA license compilation procedures have been completed for projects for which the EIA process has been completed.
· Expropriation decisions were taken within the scope of land acquisition processes of Uşak WPP capacity increase projects, Akıncı hybrid SPP, Koyulhisar hybrid SPP, Yalova hybrid SPP projects.
· Water surface leasing transactions with DSİ for the Dalaman and Feslek hybrid SPP projects have been completed.

Hybrid solar power plants and wind capacity increase investment projects are planned to be funded and commissioned without additional borrowing. The Company's cash generation capacity is sufficient for this purpose.