Arcelik's ever growing commitment to sustainability is rewarded
ISTANBUL, Nov. 19, 2021 /PRNewswire/ -- Arçelik A.Ş. (ARCLK: IST, "Arçelik"), the global leading consumer durables and electronics manufacturer, scored 86/100 in the 2021 S&P Global Corporate Sustainability Assessment (CSM) as of November 12, 2021, which evaluates the world's largest companies and assesses their sustainability performance and environmental, social, and governance (ESG) efforts.
The company also achieved the highest score out of 20 companies assessed in the DHP Household Durables Industry. This announcement highlights Arçelik's ever-growing commitment to a sustainable future and places the company once again as the benchmark brand in the manufacturing industry. Also, Arçelik has for the fifth year in a row been listed in the Dow Jones Sustainability Indices (DJSI).
This recognition follows Arçelik's announcement at the 2021 United Nations Climate Change Conference (COP26) that it has re-submitted more ambitious science-based emissions reduction targets for their Scope 1, 2 and 3 GHG emissions, pushing for a 50.4% reduction across all three scopes as part of the company's commitment to the Paris Agreement goals. This demonstrates that Arçelik understands it has a responsibility to lead the way in energy transformation and a more sustainable future.
Prior to this, Hakan Bulgurlu, CEO of Arçelik joined The World Economic Forum Alliance of CEO Climate Leaders. A group of 70 global chief executives, who are driving cross-sector collaboration to accelerate the transition to a net-zero economy. Arçelik understands that there is more that can still be done and are calling on other businesses to join in the fight and recognise how they can effect change and stop environmental devastation. Arçelik is also one of 45 companies that have been awarded the HRH The Prince of Wales' Terra Carta Seal in recognition of the company's commitment to creating a sustainable future.
Commenting on Arçelik's consistent inclusion in the Dow Jones Sustainability Indices, CEO Hakan Bulgurlu said:
"It is a privilege to be included on the DJSI for a fifth year in a row, achieving the highest score in our sector – this recognition is a hugely important accolade for our business. Arçelik's efforts towards building a more sustainable future are consistently evolving. Following our attendance at COP26, we realise there is still so much more to do, and we are committed to ensuring we are a part of the global solution. As a business, we are always striving to do more to support the fight against climate change and our science-based commitments to reduce our Scope 1, 2 and 3 GHG emissions are a demonstration of that – in addition to joining The World Economic Forum Alliance of CEO Climate Leaders and retaining our place on the DJSI.
ARÇELIK'S SUSTAINABILITY COMMITMENTS
- Arçelik, which used 100% green electricity in 2019 for its Turkey and Romania operations, aims to use 100% green electricity in all global production facilities by 2030.
- Arçelik aims to decrease the energy consumption used to produce each product by 45% by 2030 (compared to 2015 baseline in South Africa, Russia, Turkey, Romania, China, Thailand and Pakistan plants).
- Arçelik, Turkey's first and only industrial company which owns two WEEE (Waste Electrical and Electronic Equipment) Recycling Facilities, achieved 315 GWh energy savings and 6.4 million tons of water savings by replacing old high energy and water consuming products with energy and water efficient products regardless of the brand since 2014.
- The old products collected from the market are being sent to Arçelik WEEE Recycling Facilities where they are recycled.
- The saving generated is equivalent to nearly 39 million households' daily electricity consumption and 7.9 million households daily water consumption.
ABOUT ARÇELIK'S REVISED SCIENCE-BASED TARGETS (STILL BEING REVIEWED BY SBTi) AND OTHER RECOGNITIONS:
- Arçelik has revised its initial science-based targets, to contribute to the worldwide efforts to limit global warming to 1.5°C, compared to pre-industrial levels. The business has committed to reduce its absolute Scope 1 and Scope 2 emissions, and absolute Scope 3 emissions from the use of its sold products by 50.4% by 2030, compared to the base year of 2018. The Scope 3 is often overlooked by businesses as it requires them to reduce the carbon emissions generated in the entire value chain, including emissions generated from the extraction of raw materials, logistics, transportation, consumer use phase as well as end of life of the products.
- Arçelik has successfully become carbon-neutral in global production plants1 (Scope 1 and 2) in 2019 and 2020.
- Arçelik was selected as the most sustainable white goods company to enter Corporate Knights Global 100 World's Most Sustainable Companies ranking. Through its leadership position in sustainability and decarbonization roadmap for achieving net zero emissions by 2050, Arçelik became the first and only company from its industry to receive the Terra Carta Seal by HRH Prince of Wales.
ABOUT S&P DOW JONES INDICES AND DOW JONES SUSTAINABILITY INDICES
S&P Dow Jones Indices is the largest global resource for essential index-based concepts, data and research, and home to iconic financial market indicators, such as the S&P 500® and the Dow Jones Industrial Average®. More assets are invested in products based on our indices than products based on indices from any other provider in the world. Since Charles Dow invented the first index in 1884, S&P DJI has been innovating and developing indices across the spectrum of asset classes helping to define the way investors measure and trade the markets.
The DJSI are float-adjusted market capitalization weighted indices that measure the performance of companies selected using environmental, social and governance (ESG) criteria. The DJSI, including the Dow Jones Sustainability World Index (DJSI World), were launched in 1999 as the pioneering series of global sustainability benchmarks available in the market. The index family is comprised of global, regional and country benchmarks. Arçelik has featured in the DJSI since 2017.
The full results and list of DJSI constituents are available at https://www.spglobal.com/esg/csa/
For more information about the DJSI methodology, please visit: https://www.spglobal.com/spdji
With over 40,000 employees throughout the world, Arçelik's global operations include sales and marketing offices in 48 countries, and 28 production facilities in 9 countries and 12 brands (Arçelik, Beko, Grundig, Blomberg, ElektraBregenz, Arctic, Leisure, Flavel, Defy, Altus, Dawlance, Voltas Beko). As Europe's second-largest white goods company by market share (based on volumes), Arçelik's consolidated revenue reached US$4.3 Billion in 2020. Arçelik's 30 R&D and Design Centers & Offices across the globe, are home to over 1,700 researchers and hold more than 3,000 international patent applications to date. In 2020, Arçelik is named the "Industry Leader" in the Household Durables category for the 2nd year in a row in Dow Jones Sustainability Index and, in accordance with PAS 2060 Carbon Neutrality Standard, became carbon-neutral in Scope 1 and 2 in global manufacturing in 2019 and 2020 with its own carbon credits. Through its leadership position in sustainability and credible science-based decarbonization roadmap for achieving net zero, Arçelik became the first and only company from its industry to receive the Terra Carta Seal by HRH Prince of Wales. Arçelik's mission is 'Respecting the World, Respected Worldwide.'
1 Singer Refrigerator Plant and TV & AC Plant in Bangladesh acquired in 2019, Voltbek in India which started production in 2020, and Arçelik-LG A/C joint venture plant in Turkey are excluded from calculations.