At SOCAR Türkiye, we believe in the possibility of a sustainable future. We are committed to minimizing the environmental impact of our operations, in addition to creating financial value through our business strategy. We support sustainable growth in all the sectors in which we operate and continue to create value for people, society, and the environment by integrating cutting-edge technologies into our processes. In this regard, we embrace the United Nations' call for global action, the Sustainable Development Goals (SDGs), and lead in prioritizing the support of the 8 global goals that we consider essential. These are:

• 5. Gender Equality
• 6. Clean Water and Sanitation
• 7. Affordable and Clean Energy
• 8. Decent Work and Economic Growth
• 9. Industry, Innovation and Infrastructure
• 12. Responsible Consumption and Production
• 13. Climate Action
• 17. Partnerships for the Goals

We transparently share the activities we carry out in line with these objectives with the public annually through SOCAR Türkiye Sustainability Report, which we publish annually. Our report includes the projects of our main company and subsidiaries in Türkiye in areas such as energy consumption, carbon emissions, community engagement and supply chain.

The report consists of four main sections. These are:

• Environment and Combating Climate Change
• Human-Oriented Approach
• Technology and Innovation
• Social Benefit and Social Responsibility.

Here are the highlights of our Sustainability Report:

Environment and combating climate change

We determine the framework of our environmental management according to SOCAR Türkiye OHS-E Policy. In this context, we carry out activities in areas such as carbon emissions, waste management and renewable energy in order to reduce our environmental impacts. We also carry out awareness-raising activities on energy efficiency and environmental issues. With our efforts to reduce carbon emissions, we aim for a 40% reduction by 2035 and net zero emissions by 2050. We carry out Life Cycle Assessment (LCA) studies to determine our environmental impact and improvement areas on a product basis.

We aim to reduce our environmental impact by applying pre-booming process to ships approaching STAR Refinery jetties. In this context, the ships are surrounded by barriers before loading or unloading. In this way, environmental impacts that may occur as a result of a possible spillage are taken under control.

Our subsidiary SOCAR Energy Trade delivers green energy certified with the International Renewable Energy Certificate (I-REC) to consumers in order to reduce and neutralise the carbon footprint of the end consumer. In this context, 13.5% of its energy sales in 2022, i.e. 382 million kilowatt-hours, was green energy. In addition, the intermediary services we offer to consumers for the installation of solar energy systems are also included in the product range.

We support limiting the increase in global average temperature to 1.5°C, the main goal of the Paris Climate Agreement. We are working to reduce carbon emissions and achieve the net zero target. In this context, we consistently deal with the topic of climate change, exploring both its risks and opportunities across different fields.

As part of our decarbonisation efforts, we aim to reduce the emission intensity arising from our refinery and petrochemical operations by 1% on average annually until 2025. Our reduction efforts revolve around two main focal points: reducing energy consumption and turning to alternative resources. On the other hand, we implement projects that make a difference on energy efficiency and digitalisation under the "My Value Platform", which grows with the business ideas of our employees. As part of the initiative, STAR Refinery completed 32 sustainability projects in 2022, resulting in the conservation of 76,000 metric tons of water. Additionally, Petkim's 24 projects led to a reduction of 48,000 metric tons of carbon emissions and savings of 32,000 metric tons of water.

At SOCAR Türkiye, we also observe the water consumption that occurs during our operations. In this context, as a result of the water consumption reduction work we implemented throughout Petkim, our annual average water consumption of 250 t/h decreased to 120 t/h.

We recognise that our activities may impact the ecosystem and biodiversity. We are committed to protecting the communities and natural environments where we live and work. We believe in the importance of effective waste management for a sustainable future. Our waste management system is centered on waste reduction, separation, and recycling at the source. In the recycling domain, we've partnered with METU to launch the 'Project for Developing Raw Materials from Waste Polyolefins for Refinery and Petrochemical Inputs.' This project aims to convert plastic waste into petrochemical industry-appropriate raw materials using chemical methods.

Responsible supply chain

The value chain we have created requires a purchasing operation parallel to its size. In this context, we observe sustainability in all our purchasing operations with a responsible supply chain approach. We also encourage all suppliers in our supply chain to make their processes sustainable.

Human-oriented approach

We always prioritise the fundamental rights and welfare of our stakeholders with a human-oriented business approach. We treat everyone equally without discriminating between our colleagues on the basis of language, religion, race or gender. We prioritise equal opportunity in our recruitment processes.

"We treat everyone equally without discriminating between our colleagues on the basis of language, religion, race or gender."

Gender equality

We strongly believe in the power of women in driving social development and business progress. To support this belief, we've signed the Women's Empowerment Principles (WEPs), a joint initiative by UN Women and UN Global Compact. Our commitment to diversity, equality, and inclusion is embedded in our business practices. We strive to create a positive, safe, and inclusive work environment that fosters development, encourages participation, and respects human rights for all our colleagues.

We believe that each of our colleagues will add value to our company with their own colours, preferences, thoughts, talents and beliefs with the initiative we launched by saying "Our Energy is Diversity". Therefore, we strive to promote a culture that accepts diversity. We also support the development of our employees with the trainings we prepare within the scope of the initiative.

Employee engagement and well-being

At SOCAR Türkiye, we recognise the importance of maintaining and improving the loyalty and satisfaction of all our employees. We provide various fringe benefits and performance bonuses to all our employees without any discrimination in our operations. We uphold these rights without any discrimination based on gender, religion, language, ethnic background, or similar factors, except for differences in job titles. They are provided to all employees with an equal approach, taking into account the principles of working and living humanely.

Technology and innovation

We strengthen our leading position in the sector by integrating the latest technologies into our processes. We support the development of our processes by conducting various R&D studies in line with the needs of our business units.

Digital transformation

With our pioneering position in the sector, we aim to provide environmental and social benefits by integrating the latest technologies into our processes. In this direction, some of the works we carry out in the field of digital transformation are as follows:

Petkim and STAR Refinery Natural Gas Consumption Forecasting Model

Petkim and STAR Refinery production facilities use natural gas as an energy source. At this point, the natural gas consumption of the next day must be estimated daily and reported to natural gas distributors. We ensure the continuity of our processes with the studies we carry out to improve our forecasts.

Aliağa Energy Optimisation (AEO)

Our STAR Refinery and Petkim subsidiaries located on the Aliağa Peninsula include power generation and conversion units, steam collectors at different pressure levels and Wind Power Plants (WPP). With our optimisation project, we ensure energy optimisation by managing the balance between all energy sources and consumers, including electricity and steam, on the peninsula. In this way, we contribute to our sustainability goal with the optimum, most efficient steam and electricity production and consumption.

HCU Diesel Flash Point Prediction and Optimization

With the project, we aim to calibrate the flash points in the diesel pool in real time and thus prevent quality-related losses. We predict the flash points in the diesel pool and diesel mixture pool in the HCU unit with analytical models developed using big data. Thus, we can determine the amount of heavy naphtha required to achieve the optimum flash point. By preventing losses, we aim to increase productivity by achieving financial benefits and ease of management.

R&D activities

Our R&D and Innovation Centre develops projects to increase environmental performance and resource efficiency in all activities of our group companies. In the field of Horizon 2020 - Carbon Capture - Storage and Utilisation (CCSU), SOCAR Türkiye R&D is actively involved in European Union projects such as CARMOF and CO2 Focus. Here are some of our projects:

NEFERTITI Project

The NEFERTITI Project aims to utilise solar energy to produce chemicals such as ethanol and isopropanol from carbon dioxide using heterogeneous catalysts. We aim for this project to significantly increase our R&D experience in diversifying the use of renewable energy sources.

Circular TwAIn Project

The Circular TwAIn Project is the first digital project developed by SOCAR Türkiye R&D and Innovation Centre to be funded by Horizon 2020. This project, aiming to boost energy efficiency with AI and digital solutions, is our fourth EU-funded endeavor.

LOUISE Project

Through the LOUISE Project, funded by the Horizon 2020 grant programme, we aim to add value to solid waste. Within the scope of the project, we aim to develop a system that makes it possible to obtain energy and pure CO2 from solid waste by chemical looping combustion (CLC).

Social benefit and social responsibility

We support social development by carrying out corporate responsibility projects both in the regions where we operate and nationally. In addition to the social benefit-oriented pioneering projects we realise in the fields of environment, sports, education and culture and arts, we also carry out donation and sponsorship activities. Let's take a closer look at some of these activities.

Federation of Physically Disabled Persons of Türkiye - Boccia National Team Main Sponsorship

With our group company Petkim, we have been the main sponsor of the Turkish Boccia National Team since 2018. By supporting Boccia, the only sport that can be played by severely disabled individuals, we contribute to the participation of athletes and their families in social life and the goal of an inclusive society.

Engineer Girls of Türkiye Project

Since 2021, we have been a stakeholder in the Engineer Girls of Türkiye Project, which we continue to support. The project aims to contribute to the personal and professional development of future female engineer candidates studying at engineering faculties. As part of our support, we provided 10 chemical engineering students with scholarships, English language training, mentorship and internship opportunities. We also hosted the students at our production facilities in Aliağa and offered them the opportunity to closely examine the production processes.

TURMEPA and SOCAR Terminal "Blue Climate Ambassadors" Project

We joined the Blue Climate Ambassadors project, aimed at boosting the presence of women in ports, promoting zero waste practices for a sustainable marine environment, and addressing climate change challenges. Within the scope of the project carried out with TURMEPA, TÜRKLİM and Wista Türkiye, we provided zero waste training to port employees with the support of SOCAR Terminal. We also carried out coastal cleaning activities at Aliağa Public Beach and Karşıyaka Seashell Island within the scope of combating zero waste and climate change.

SOCAR Türkiye Volunteers

In 2021, we launched the SOCAR Türkiye Volunteers platform, a volunteering programme initiated by the will of SOCAR Türkiye employees. With this project, we contribute to our colleagues developing an awareness of social responsibility and internalising volunteerism. Established with the participation of approximately 500 colleagues, SOCAR Türkiye Volunteers realises social responsibility projects in line with the Sustainable Development Goals. Here are some of them:

SOCAR Türkiye Volunteers 2022 EÇEV "Make a Wish" Campaign

SOCAR Türkiye Volunteers partnered with the Aegean Contemporary Education Foundation (EÇEV) to fulfill the New Year wishes of underprivileged children. Our team members helped make the dreams of 605 children come true through this project. They visited the Yamanlar Education Center and handed out gifts to kids in need.

SOCAR Türkiye Volunteers Training Activities

We carried out our "Safe and Efficient Natural Gas Usage Training" project, which was planned jointly with the Bursa Provincial Directorate of National Education, with the participation of students and teachers of 374 schools in Bursa. 53,487 students and teachers in total participated in the trainings we have successfully organised online since 2021.

SOCAR Türkiye Volunteers Memorial Forest, Aegean Forest Foundation Tree Planting Event

Together with our Group companies, we prevented the cutting down of 1,056 trees by recycling 62 tonnes of paper whose storage period had expired. We created the SOCAR Türkiye Memorial Forest in Menemen by donating 10,000 saplings to the Aegean Forest Foundation with the income generated. We organised a tree planting event with the participation of SOCAR Türkiye Volunteers, who work for our future.

As SOCAR Türkiye, we are working today for a better tomorrow, fueled by our energy.

Click here to access our full Sustainability Report.