ARÇELİK A.Ş. - Environmental & Social Information 2023

Sustainability Principles Compliance Statement

Arçelik espouses sustainability as a business model in keeping with its vision spelled out as “Respectful of the World, Respected Worldwide”. With this understanding, the Company closely monitors best practices in sustainability, including those specified in the Capital Markets Board of Türkiye (CMB) Sustainability Principles Compliance Framework, and carries out its activities with the goal of achieving compliance with the generally accepted best practices in this field. Arçelik is already actively dealing with the majority of the principles and good practices stated in the Sustainability Principles Compliance Framework enforced by the CMB, and regularly reviews and evaluates its performance in this field, undertaking improvement activities. Accordingly, Arçelik achieved compliance with all non-mandatory principles in CMB’s Sustainability Principles Compliance Framework with a “comply-orexplain” approach. While full compliance is achieved with the requirements of all principles, betterment efforts are in progress in some improvement areas due to reasons such as the global scale of the operations, ongoing efforts to ensure the full set of actions that will respond to different expectations under the applicable obligations, global uncertainties, the incompatibility of some of the principles with the Company’s existing structure, and difficulties in practice. For principles that require improvement, it is intended to regularly review sustainability targets and key performance indicators annually. Improvement processes for relevant principles will be completed following our ongoing work such as reviewing the global best practices and the completion of technical infrastructure and data collection in a manner to contribute to the Company’s target to create sustainable value.

Activities associated with the principles mentioned in

CMB’s Sustainability Principles Compliance Framework are addressed in the “Sustainability” section of Arçelik’s Annual Report. In addition, detailed information is presented for review by stakeholders in the Sustainability Report posted on Arçelik corporate website, and in the sustainability

section as well as various other sections on the website. Within the scope of the information disclosed, explanations regarding principles for which improvement will be achieved are as follows:

Principle B.9 –Information about its environmental impacts comparatively in the light of environmental indicators for a given year (Scope 1 (direct), Scope 2 (indirect from purchased energy), Scope 3 (other indirect), air quality, energy management, water and wastewater management, waste management, biodiversity implications) is reported periodically via the “Sustainability Report”. Since verification is in progress for the said data, the information was disclosed as it is in the Annual Report. Upon completion of verification, the related information will be made available to stakeholders within the Sustainability Report as mentioned above.
Principle B.17 – Heat, steam and cooling energies generated for a given year will be considered as secondary energy types and disclosed in the Sustainability Report upon verification of the consumption amounts of primary energy sources used for obtaining them. Arçelik is improving its existing energy monitoring systems in place for monitoring and reporting these secondary energy types in the coming periods.

Sustainability Principles Compliance Report prepared in accordance with the formats defined by the CMB Resolution dated 23 June 2022, numbered 34/977, and approved by the Company’s Board of Directors is appended to the annual report, and related documents can also be accessed on the Company’s page on the Public Disclosure Platform.

https://www.kap.org.tr/tr/sirket-bilgileri/ozet/863-arcelika-s

Sustainability Principles Compliance Report

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COMPLIANCE
EXPLANATION RELATED REPORT/LINK
YES NO PARTIAL N/A
A. General Principles
A1. Strategy, Policy and Targets
A1.1 The Board of Directors X As a signatory of TCFD, Arçelik Arçelik 2022 Annual Report, Sustainability
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A1.1	The Board of Directors	X	As a signatory of TCFD, Arçelik	Arçelik 2022 Annual Report, Sustainability
	determines material environmental, social and governance (ESG) issues, risks and opportunities.		A.Ş. (Arçelik) determines ESG risks and scenarios in line with its sustainability vision at the Board of Directors level and discloses them publicly. Board members oversee the implementation and execution of strategic decisions to be taken and action plans associated with all potentially risky ESG areas that might bear an impact on Arçelik’s overall strategy, in particular the Company’s climate change strategy.	Section Arçelik Corporate Website https://www.arcelikglobal.com/en/ sustainability/our-approach/sustainability- governance/ https://www.arcelikglobal.com/en/ sustainability/policies/policies/ https://www.arcelikglobal.com/media/7252/ tcfd_en.pdf

	The Board of Directors establishes relevant ESG policies (e.g. Environmental Policy, Energy Policy, Human Rights and Employee Policy, etc.) and they are publicly disclosed.	X	Arçelik’s policies regarding its sustainability practices in line with its sustainability vision can be found on the Company website.	Arçelik 2022 Annual Report, Sustainability Section Arçelik Corporate Website https://www.arcelikglobal.com/en/ sustainability/our-approach/sustainability- governance/ https://www.arcelikglobal.com/en/ sustainability/policies/policies/
A1.2	Publicly discloses short- and long-term goals set according to ESG policies.	X	Arçelik defned its short- and long-term sustainability goals with 2030 Sustainability Targets and 2050 Net Zero emission target, respectively, and publicly discloses its progress each year in its sustainability reports. Arçelik submitted its revised Scope 1, Scope 2, and Scope 3 emission goals in line with the 1.5°C scenario for the approval of the Science Based Targets Initiative (SBTi).	Arçelik 2022 Annual Report, Sustainability Section Arçelik 2021 Sustainability Report, 2030 Goals Section https://www.arcelikglobal.com/media/6938/ arcelik21_sustainability_report.pdf Arçelik Corporate Website https://www.arcelikglobal.com/en/ sustainability/intouch/2030-goals/ https://www.arcelikglobal.com/en/ sustainability/in-touch-with-our-planet/ combating-the-climate-crisis/ https://www.arcelikglobal.com/en/ sustainability/our-approach/sustainability- governance/

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COMPLIANCE
EXPLANATION RELATED REPORT/LINK
YES NO PARTIAL N/A
A2. Implementation/Monitoring
A2.1 Determines and discloses the X Focused on managing its Arçelik 2022 Annual Report, Sustainability
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A2.1	Determines and discloses the	X				Focused on managing its	Arçelik 2022 Annual Report, Sustainability
	committees/units responsible for the execution of ESG policies, and the highest level positions in charge of ESG issues at the Company and their duties.					sustainability efforts at the highest level, Arçelik publicly discloses detailed information about the Risk Committee, Sustainability Board, and senior executives in charge of ESG issues via the Sustainability section in its Annual Report, its Sustainability Report and corporate website. Climate risks and opportunities are followed up and managed in parallel with the Net Zero by 2050 strategy and the general sustainability strategy; the Risk Committee under the Board of Directors is kept regularly informed of climate risks and opportunities. The Board of Directors has the broadest authority with respect to the execution of sustainability strategy at Arçelik. Koç Holding Consumer Durables President from amongst the Board of Directors members and Executive Director of Quality, Sustainability and Corporate Relations who is the Company’s senior executive having the highest authority in this matter, are assigned with reporting sustainability efforts to the Board of Directors based on the Board decision.	Section Arçelik Corporate Website https://www.arcelikglobal.com/en/ sustainability/our-approach/sustainability- governance/
	The responsible committee and/ or unit reports the activities carried out as per the policies during the year at least once a year to the Board of Directors.	X				The Board of Directors member serving on the Risk Committee and assigned with Sustainability Principles Compliance activities reports to the Board of Directors.	Arçelik 2022 Annual Report, Sustainability Section Arçelik Corporate Website https://www.arcelikglobal.com/en/ sustainability/our-approach/sustainability- governance/

		COMPLIANCE	COMPLIANCE	COMPLIANCE	COMPLIANCE	EXPLANATION	RELATED REPORT/LINK
		YES	NO	PARTIAL	N/A
A2.2	Creates and discloses implementation and action plans aligned with ESG targets.	X				Arçelik targets to achieve Net Zero emissions by 2050 throughout its value chain and regularly reports its implementations and action plans in this pathway publicly through its website and reports.	Arçelik 2022 Annual Report, Sustainability Section Arçelik 2021 Sustainability Report https://www.arcelikglobal.com/media/6938/ arcelik21_sustainability_report.pdf Arçelik Corporate Website https://www.arcelikglobal.com/en/ sustainability/in-touch-with-our-planet/ combating-the-climate-crisis/
A2.3	Discloses ESG Key Performance Indicators (KPI) and the degree of their achievement by years.	X				Arçelik has been monitoring ESG key performance indicators for more than 10 years; the Company updates its indicators in the light of global indices and frameworks, and reports regularly its progress. Among the data set followed up at the Koç Group level, the indicators shared publicly cover the changes over the course of the last three years.	Arçelik 2022 Annual Report, Sustainability Section Arçelik 2021 Sustainability Report, 2030 Goals Section & App. 4: Environmental Performance Indicators https://www.arcelikglobal.com/media/6938/ arcelik21_sustainability_report.pdf
A2.4	Discloses efforts for improving sustainability performance with respect to work processes or products and services.	X				Arçelik publishes Annual and Sustainability Reports each year and publicly discloses its practices and performance in sustainability area.	Arçelik 2022 Annual Report, Sustainability Section Arçelik 2021 Sustainability Report, 2030 Goals Section https://www.arcelikglobal.com/media/6938/ arcelik21_sustainability_report.pdf
A3. Reporting
A3.1	Discloses sustainability performance, targets and actions in an intelligible, accurate and adequate manner in annual reports.	X				Arçelik discloses intelligible, accurate and adequate information regarding its sustainability performance in tis annual reports. Every year, various global sustainability indices evaluate Arçelik’s performance based on the information provided in Annual and Sustainability Reports.	Arçelik 2022 Annual Report, Sustainability Section Arçelik 2021 Sustainability Report https://www.arcelikglobal.com/media/6938/ arcelik21_sustainability_report.pdf Arçelik Corporate Website https://www.arcelikglobal.com/en/company/ reports-presentations/
A3.2	Provides information about which of the United Nations (UN) 2030 Sustainable Development Goals its activities relate to.	X				Arçelik supports the United Nations 2030 Agenda for Sustainable Development. The Company makes public its priority targets as well as its practices and contribution to global goals every year in its Annual and Sustainability Reports.	Arçelik 2022 Annual Report, Sustainability Section Arçelik 2021 Sustainability Report, Sustainable Development Goals Section https://www.arcelikglobal.com/media/6938/ arcelik21_sustainability_report.pdf Arçelik Corporate Website https://www.arcelikglobal.com/en/ sustainability/our-approach/sustainability- governance/

		COMPLIANCE	COMPLIANCE	COMPLIANCE	COMPLIANCE	EXPLANATION	RELATED REPORT/LINK
		YES	NO	PARTIAL	N/A
A3.3	Makes disclosures regarding the lawsuits fled and/or concluded against the company on account of ESG issues, which are material with respect to ESG policies and/or have material impact on operations.	X					Arçelik 2022 Annual Report, Other Disclosures
A4. Verifcation
A4.1	ESG Key Performance measurements are verifed by an independent third party and publicly disclosed.	X				ESG data reported globally by Arçelik are verifed each year by an independent third party and publicly disclosed in Arçelik Sustainability Report. Arçelik Annual Reports, on the other hand, present the verifed data for the threepreceding years.	Arçelik 2022 Annual Report, Sustainability Section Arçelik 2021 Sustainability Report, App. 2 Verifcation Section https://www.arcelikglobal.com/media/6938/ arcelik21_sustainability_report.pdf
B. Environmental Principles
B1	Publicly discloses its environmental management policy and practices, action plans, environmental management systems (known by ISO 14001 standard) and programs.	X				Arçelik confgures its work processes in accordance with international product and governance standards, in particular ISO 14001 Environmental Management System integrated with ISO 9001 Quality Management System and ISO 50001 Energy Management System.	Arçelik Annual Report, Sustainability Section Arçelik 2021 Sustainability Report https://www.arcelikglobal.com/media/6938/ arcelik21_sustainability_report.pdf
B2	Publicly discloses the limitations over the reporting scope, reporting period, reporting date, reporting conditions of the environmental reports to be prepared for providing environmental management information.	X				Arçelik discloses the scope, reporting period, date and conditions of the environmental management information it makes available to the public.	Arçelik 2022 Annual Report, Sustainability Section Arçelik 2021 Sustainability Report, App.-1 Scope Section https://www.arcelikglobal.com/media/6938/ arcelik21_sustainability_report.pdf
B.3	Provided in A2.1.	X