The following actions are taken in purchasing and supply chain activities to support sustainability efforts:

• Content regarding energy efficiency/use of requested materials (PRs) in purchasing processes is determined in the Green Procurement Policy, Evaluate Bids Quotations MM Procedure, MM Check Stock Availability and Create PR Procedures. Additionally, the practices are carried out within these scopes. detailed information, please contact our Procurement Department.
• In the realm of sustainability, we are focusing on energy efficiency opportunities to support SOCAR Türkiye's decarbonization strategy. In this context, we started using electric forklifts in our sales warehouses as of March 2023.
• Employees of service providers/contractors operating in SOCAR Türkiye Refinery Petrochemical Business Unit site must get an obligatory training session before entering the operation site. Environmental contents are included in the training scope. For detailed information, please contact our HSE Department.
• For service providers/contractors operating within the SOCAR Türkiye Refinery Petrochemical Business Unit site, as part of procurement and supply chain processes, annual field inspections are conducted with the participation of the Procurement Department and other relevant departments. Any deficiencies identified during field inspections are reported to the service providers/contractors for corrective actions. Necessary actions are taken in accordance with procedures for non-compliant service providers/contractors. For more information on this matter, please contact our Procurement Department.
• All group companies under SOCAR Türkiye carry out their activities within the scope of the SOCAR Türkiye Code of Ethics, prepared in accordance with the Constitution of the Republic of Türkiye, the United Nations Universal Declaration of Human Rights and the International Labour Organization's fundamental conventions. As well as our employees, we expect our business partners and suppliers/contractors acting on behalf of SOCAR Türkiye in accordance with our Code of Ethics. For detailed information on this matter, you may review the Code of Ethics shared on SOCAR Türkiye and Petkim websites.

This policy outlines SOCAR Türkiye's approach to identifying and managing risks, and defines the responsibilities of the Board of Directors, Management, and other employees within the Company regarding risk management. The policy aims to embed the need for risk management as a part of the Company's culture, where a shared understanding of risk enables well-informed decision-making, and to define the principles SOCAR Türkiye adheres to in order to achieve its risk management objectives. The purpose of the "Corporate Risk Management Policy" is to make risk management an integral part of the Group Companies' culture, where a shared understanding of risk supports well-informed decisions.

This policy applies to all organizational levels and all companies within SOCAR Türkiye.

SOCAR Türkiye recognizes that effective risk management is a fundamental component of successful corporate governance and is critical to the Company’s ongoing growth and success. SOCAR Türkiye is committed to ensuring that risk management is implemented across the organization to fulfill corporate governance responsibilities and achieve strategic objectives.

Corporate Risk Management enables SOCAR Türkiye to identify and manage risks to achieve the following objectives:

• Improve business performance by identifying growth opportunities.
• Stay innovative and gain competitive advantage.
• Anticipate uncertainties and establish necessary communication.
• Minimize operational losses and unexpected impacts.
• Protect the Company’s value by managing reputation and brand.

The objectives of SOCAR Türkiye’s Corporate Risk Management Policy and Framework are:

• To provide a consistent and systematic approach to identifying, analyzing, evaluating, mitigating, monitoring, and reporting on the risk portfolio.
• To deliver actionable assessment outcomes that contribute to achieving strategic objectives.
• To ensure that Management is provided with the best available information for decision-making.
• To ensure that decisions align with the Company’s risk appetite, are made within approved risk tolerances, and are subject to adequate independent oversight.
• To provide reasonable assurance, through internal control and internal audit activities, that internal controls are in place and operating effectively and efficiently.

SOCAR Türkiye will provide the necessary resources and support mechanisms to ensure the fulfillment of its Risk Management commitment.

Each Group Company, its management, and employees are responsible for implementing the requirements of this policy in consultation with the Corporate Risk Management Department. The cooperation of all employees is required, and collaboration is expected from everyone. Effective risk management is vital for SOCAR Türkiye’s continued growth and success.

CORPORATE RISK MANAGEMENT STUDIES IN SOCAR TÜRKİYE

At SOCAR Türkiye, we have adopted a transparent, accountable, fair and responsible risk management process that is compatible with variable business and environmental conditions and pro-actively addresses risks and opportunities that may affect our operations and our stakeholders. As SOCAR Türkiye, we follow a comprehensive corporate risk management model in order to manage the risks we may be exposed to and the opportunities that may arise, to track the changes of these risks and opportunities over time, and to successfully achieve our sustainability goals. We further evaluate the risks that may affect our operations and future performance in the short, medium and long term in addition to our current risks and take the necessary precautions and actions accordingly.

SOCAR Türkiye Risk Management Unit is positioned under the Board of Directors in a centralized manner within the organization in order to provide support to all subsidiaries on senior management and unit basis in accordance with international standards, particularly ISO 31000 Risk Management.

We refer to the "SOCAR Türkiye Risk Appetite Declaration" approved by the Board of Directors in 2020 and examples of best practices around the world while pro-actively addressing our risks and opportunities which we monitor at regular intervals. We have developed the “SOCAR Türkiye Risk Appetite Tolerance Limit Policy”, which determines the approach to determining, monitoring and reporting the approved Risk Appetite Statement, in order to support the implementation of the risk appetite concept. This document provides a methodological guidance across the organization to define the implementation of required activities. Regarding the tracking and monitoring of KRIs and Exposure Metrics, periodic reviews are carried out to ensure compliance with strategic and operational goals, thus ensuring the efficiency, objectivity and independence of corporate risk management studies.

Our risk management processes are audited by the Early Detection of Risk Committee, on behalf of the Board of Directors, in accordance with the risk profile of our company. Relevant processes are executed by our experts in business units, within the framework of the resolutions adopted by the Group Risk Committee, which operates under the CEO at the senior management level. Early Detection of Risk Committee provides consultancy and suggestions to the Board of Directors about the early detection and assessment of all kinds of risks that may affect our company, calculating the impact and probabilities thereof, management and reporting these risks in accordance with the company's corporate risk taking profile, implementation of the necessary actions regarding the identified risks and taking them into consideration in decision-making mechanisms and establishing effective internal control systems accordingly. In this context, target-based risk assessments are made for the purpose of ensuring the necessary actions to be taken in a timely manner to achieve the targets through potential impact analyzes and probability calculations and allowing the relevant resources to be used based on these criteria.

Besides monitoring our risks and opportunities at regular intervals, we further support our decision-making processes from a risk perspective by making situation-specific risk assessments at strategic investment demands that we may encounter in business processes, critical stages of projects and decision moments that may significantly affect operations.

To access more detailed information, you can review SOCAR Türkiye and Petkim Annual Integrated reports.

Risk Management Studies in ESG and Sustainability Areas

In addition to the traditional risk registry list that SOCAR Türkiye has prepared during the reporting period, we further created our ESG (Environmental, Social and Governance) risk registry list, including our climate-related risks, in which sustainability risks are fully integrated into the process. We then re-evaluated the risk items in our risk registry, which was developed as the end of a comprehensive workshop held with the attendance of relevant individuals from all business units, taking into account the global sustainability agenda, mega trends and current reporting standards such as the Paris Climate Agreement, European Green Deal and Net Zero Carbon. We grouped them under environmental, social and governance headings. The list was developed taking into account the requirements of the ISO 31000 Risk Management System Standard as well as the IFRS S1 and S2 Standards. Our assessment includes possible priority issues regarding the short, medium and long-term consequences of the risks, their connections with the climate (physical, transition), maturity, severity, probability of occurrence, measures and actions we take to manage the risk in the short, medium and long term, emerging opportunities, relevant capital element and risk-related factors.

You can see the ESG focused threats and opportunities tables below:

SOCAR Türkiye ESG Focused Threats Table