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Eczacibasi Building Products SUSTAINABILITY REPORT (2021) - page 2

ABOUT

WE CARE FOR NATURE

WE DESIGN WITH PURPOSE

WE WORK FOR A BETTER FUTURE

WE THRIVE FOR CULTURAL & INSTITUTIONAL PROGRESS

APPENDIX

Business Category

Revenue Share 2021

By Product Categories

44%

17%

31%

CSW & Comp.

Faucet

Bathroom

Furniture

Concealed

Cistern

Showering

Areas

ABOUT

WE CARE FOR NATURE

WE DESIGN WITH PURPOSE

WE WORK FOR A BETTER FUTURE

WE THRIVE FOR CULTURAL & INSTITUTIONAL PROGRESS

APPENDIX

Product Portfolio

Ceramic Sanitaryware

•

W.C. Pan

•

Cistern

•

Washbasin

•

Pedestal

•

Sink

•

Urinal

•

Separator

•

Bidet

•

Shower Tray

•

Squatting Pan

Complementary Products

•

Seat Cover

•

Flushing Mechanism

Concealed Cisterns

•

Concealed Cistens

•

Flush Plates

Shower Areas

•

Compact units

•

Bathtubs

•

Shower channels

•

Shower trays

Bathroom Furniture

•

Furniture

•

Counters

•

Mirrors

•

Complementary products

Faucests & Acessories

•

Basin faucet

•

Bidet faucet

•

Kitchen faucet

•

Shower set

•

Hand shower

•

Head Shower

•

Shower column

•

Shower systems

•

Bathroom accessories

ABOUT

WE CARE FOR NATURE

WE DESIGN WITH PURPOSE

WE WORK FOR A BETTER FUTURE

WE THRIVE FOR CULTURAL & INSTITUTIONAL PROGRESS

APPENDIX

Stakeholder engagement is fundamental to successful business as value creation is essential to everyone
involved in enterprise in creating a common purpose. Companies are now more aware that to be effective,
engaging stakeholders must be elevated from a risk-management tool to a deep-seated element of corporate
strategic planning.

Regular and two-way communication with our stakeholders has an important role to play in our sustainability
journey and learning about the expectations of our stakeholders and including the feedback we receive from
them in our business approach allows us to improve the products and services we offer and to manage risks and
opportunities effectively.

We believe that creating value for our world is an issue that should be taken very seriously by all stakeholders.
From this point of view, we try to spread the same perspective to the entire ecosystem while strying to
implement sustainability in all our business processes by involving all our stakeholders in our approach and activities.

In order to be able to insert stakeholder management within the sustainability framework, ten stakeholders have

identified and they have been divided into three categories:

We have identified ten different categories of stakeholders which we have grouped under three headings:

• People/organizations we have legal, operational, and financial responsibilities towards

• People/organizations which are directly affected by our organization's operations

• People/organizatiosns which are likely to influence our organization's performance

Significant stakeholder groups and our designated communication tools are listed as follows:

Stakeholder Relations

( GRI 102-21, GRI 102-40, 102-42, 102-43)

ABOUT

WE CARE FOR NATURE

WE DESIGN WITH PURPOSE

WE WORK FOR A BETTER FUTURE

WE THRIVE FOR CULTURAL & INSTITUTIONAL PROGRESS

APPENDIX

( GRI 102-21, GRI 102-40, 102-42, 102-43)

Our Stakeholders

Customers

Influencers

Employees

Business Partners

Suppliers
(Materials & Equipment)

Shareholders

Board of Directors

Research & Development

Civil Society & Industry

Platforms & Communities

Others (Agencies, Media,

Consultants)

Communication Tools

Customer Surveys (Periodic), Sustainability Reports (Annual), Social Media (Continuous), Corporate Website (Continuous), Audits (Periodic), Customer Meetings (Periodic)
Sustainability Reports (Annual), Projects (Project Based), Social Media (Continuous), Corporate Website (Continuous)
Sustainability Reports (Annual), Annual Reports (Annual), Social Media (Continuous), Corporate Website (Continuous), Group Meetings and
Publications (Continuous / Periodic / Instant), Bulletins / Announcements (Continuous), Material Disclosures (Instant), Employee EngagementSurveys (Annual), Training (Continuous), Social
Responsibility Projects (Continuous), Human Resources Handbook (Continuous), CEO webinars (Periodic), Functional regular meetings (Periodic)

Sustainability Reports (Annual), Annual Reports (Annual), Social Media (Continuous), Corporate Website (Continuous), Material Disclosures (Instant)

Sustainability Reports (Annual), Annual Reports (Annual), Social Media (Continuous)

Sustainability Reports (Annual), Annual Reports (Annual), Financial Reports (Quarterly), Social Media (Continuous), Corporate Website (Continuous), Material Disclosures (Instant), General
Assembly Meetings (Annual)

Sustainability Reports (Annual), Projects (Project Based), Social Media (Continuous), Corporate Website (Continuous)

Sustainability Reports (Annual), Annual Reports (Annual), Financial Reports (Quarterly), Social Media (Continuous), Corporate Website (Continuous), Material Disclosures (Instant),

Community Meetings (Instant/Periodic), Cash-Flow Reports (Monthly), Group Financial Results Report (Monthly), Group Profit and Loss Forecast Report (Quarterly)

Sustainability Reports (Annual), Annual Reports (Annual), Financial Reports (Quarterly), Social Media (Continuous), Corporate Website (Continuous), Customer Surveys (Periodic), Projects
(Project Based), Memberships (Continuous)

Sustainability Reports (Annual), Social Media (Continuous), Corporate Website (Continuous), Press Releases (Instant)

Ecosystem

ABOUT

WE CARE FOR NATURE

WE DESIGN WITH PURPOSE

WE WORK FOR A BETTER FUTURE

WE THRIVE FOR CULTURAL & INSTITUTIONAL PROGRESS

APPENDIX

Materiality and Prioritisation

We have reviewed the materiality process set forth under Eczacıbaşı Group’s reporting terms and executed
a ‘stakeholder engagement’ study with about 30 members who represented all the major functions of the
Company and worked on the below steps:

• A Sustainability Assessment, which helped us to define gaps between sustainability trends vs existing

sustainability initiatives under Nature, Well-being, Society and Economy pillars

• Identifying stakeholders and assessing priority for our business
• Identifying opportunities and risks for stakeholder engagement
• Developing strategic objectives and issues for stakeholder engagement

The process helped us to identify ten stakeholder groups and a list of significant topics. Each stakeholder

group was then contacted (over 40 responses were received) and asked for materiality of these topics for their

engagement with EBPB.

This resulted in EBPB’s Materiality Matrix as below:

(GRI 102-15, GRI 102-21, 102-29, GRI 102-44. GRI 102-47)

Materiality Analysis

Importance to Stakeholders

100

6,5

7,5

8,5

9,5

10.5

11.5

12,5

EBPB

Privacy & Cyber security

Business Continuity &

Resilience

Lifestyle Changes

Climate Change and Net

Zero Emissions

Responsible Procurement

and Suplly Chain

New talent management

Geopolitics

Occupational Health

and Safety

Water Consumption

Inclusive Design &

Products

Wellbeing & Hygiene

Inclusion & Diversity &

Equal Opportunity

Digital Transformation

Access to Energy

R & D & Innovation

Circular Economy

- Waste Management

- Green Materials

- Material Management

- Longetivity of Products

ABOUT

WE CARE FOR NATURE

WE DESIGN WITH PURPOSE

WE WORK FOR A BETTER FUTURE

WE THRIVE FOR CULTURAL & INSTITUTIONAL PROGRESS

APPENDIX

This report follows a structure based on our defined Material Topics, as defined in the matrix above, under four

different pillars:

•

We care for nature:

This section emphasizes ‘Water Consumption’, ‘Access to Energy’, ‘Circular Economy’

•

We design with purpose:

This section emphasizes ‘Inclusive Design and Products’, ‘Wellbeing & Hygiene’

•

We work for a better future:

This section emphasizes ‘Innovation’ and ‘Digital Transformation’

•

We thrive for cultural and institutional advancement:

This section emphasizes ‘Inclusion, Diversity

& Equal Opportunity’, ‘Occupational Health and Safety’ and ‘Value Chain’

When aligned with the United Nations Sustainable Development Goals (SDGs) which we refer to as a guiding

set of principles to understand what our environment and society immediately requires, our framework looks

as follows:

• Inclusion, Diversity &

Equal Opportunity

• Occupational Health

and Safety

WE CARE

FOR NATURE

WE DESIGN

WITH PURPOSE

WE THRIVE FOR

CULTURAL &

INSTITUTIONAL

ADVANCEMENT

WE WORK

FOR A BETTER

FUTURE

•Inclusive Design and

Production

• Wellbeing & Hygiene

• Water Consumption

• Circular Economy

• Access to Energy

• Innovation

• Digital Transformation

PEOPLE

PRODUCTION

PRODUCT

ABOUT

WE CARE FOR NATURE

WE DESIGN WITH PURPOSE

WE WORK FOR A BETTER FUTURE

WE THRIVE FOR CULTURAL & INSTITUTIONAL PROGRESS

APPENDIX

Our Contribution To SDGs

We have identified our Sustainable Development Goals and their indicators according to our Material Topics.

Philosophy

Pillars

Material Topics

SDG Goals

SDG Target Explanation

SDG

Product

Production

People

We design with purpose

Well being & Hygiene

Inclusive Design and Products

SDG 6.2

SDG 9.1

By 2030, achieve access to adequate and equitable sanitation and hygiene for all and end open defecation.

Develop quality, reliable, sustainable and resillent infrastructure, including regional and transborder

infrastructure, to support economic development and human well-being

Enchance scientific research, upgrade the technological capabilites of industrial sectors in all countries,

encouraging innovation

Enchance scientific research, upgrade the technological capabilites of industrial sectors in all countries,

encouraging innovation

By 2030, achieve the sustainable management and efficient use of natural resources.

By 2030, ensure universal access to affordable, reliable and modern energy services

By 2030, substantially reduce waste generation through prevention, reduction, recycling and reuse

By 2030, achieve the sustainable management and efficient use of natural resources

Ensure women’s full and effective participation and equal opportunities for leadership at all levels of

decisionmaking in political, economic and public life

Protect labour rights and promote safe and secure working environments for all workers, including migrant

workers, in particular women migrants, and those in precarious employment

SDG 9.5

SDG 12.2

SDG 7.1

SDG 9.5

SDG 12.5

SDG 12.2

SDG 5.5

SDG 8.8

We work for a better future

We care for nature

We thrive for cultural and
institutional advancement

Digital Transformation

Innovation

Water Consumption

Access to Energy

Circular Economy

Waste Management

Material Management

Inclusion, Diversity & Equal
Opportunityw

Occupational Health

and Safety

We Care

For Nature

How we work and consume is critical for making good use of nature’s resources,
leaving behind no net footprint, respecting livelihoods of communities,
preserving bio-diversity and hence respecting the future generation’s right to live
on a habitable planet.

• Water Consumption
• Access to Energy
• Circular Economy

ABOUT

WE CARE FOR NATURE

WE DESIGN WITH PURPOSE

WE WORK FOR A BETTER FUTURE

WE THRIVE FOR CULTURAL & INSTITUTIONAL PROGRESS

APPENDIX

Water Consumption

Water is a critical resource for life and increasingly under stress due to the climate crisis, population increase

and exponentially growing human activities. According to the projections of OECD(1) water demand is expected

to increase by 55% between 2000 and 2050. The increase in demand will come mainly from manufacturing

(+400%), electricity (+140%) and domestic use (+130%).

Ref 1

Sustainable water management plays a key role for our products’ use and production. EBPB assumes responsibility
for the manufacture of environmental-friendly products that conserve water and promote their minimal use as well
as limiting the environmental effects of water use even as we strive for hygiene and human well-being.

EBPB has been keeping the data for all locations since 2016, and along with our production volume increase, our

total water consumption has increased while the water intensity has decreased %7.6 since 2016. During 2021,

intensity has increased slightly by 1.3% but at the same time we treated 125 thousand cubic meters of water and

reused it in production. As the daily water usage per capita in EU is 0.144 ton(2), thanks to re-use of water in our

plants, daily water use of an equivalent of 868055 people has been recovered.

Ref 2: Water Use in Europe – Quantity and Quality Face Big Challenges

Other water efficiency projects in production are as follows:

• Re-use of glazed water in mill filling during glaze preparation

• Conversion of glazing water with timed armatures
• Use of water collected in glaze recovery pools in cleaning of glazing robots
• Use of high pressure nozzle system for washing sludge tanks
• Transition of garden irrigation systems to automatic and timed pulverized spray systems
• Treated water use, instead of freshwater in the raw material preparation department
• Enhancement of glazing robots’ sensitivity to detect pollution and thereby use less water.

26%

Showers

23%

Outdoors

20%

Toilets

12%

Inside
Taps

Bath

tubs

Dishwash

her

12%

Washing
dishes

Eczacıbaşı Building Products recovers the daily use of almost 1 million people with a 1-year
internal water cycle.

ABOUT

WE CARE FOR NATURE

WE DESIGN WITH PURPOSE

WE WORK FOR A BETTER FUTURE

WE THRIVE FOR CULTURAL & INSTITUTIONAL PROGRESS

APPENDIX

Faucets And Shower Systems

As of 2021, 100% of basin mixers, 93% of kitchen mixers and 25% of bath and shower faucets are equipped
with water saving features in line with European Standards . Currently two third of VitrA branded basin mixers
reduce water consumption from 12 liters per minute to only 5 liters per minute as standard and can achieve
60% water savings.

• 33% of VitrA basin mixers reduce water consumption from 12 liters/minute to only 9 liters/minute as standard
and save water up to 30%.
• 40 % of VitrA branded touch free basin mixers use only 1.3 liters/minute of water and can reduce water
consumption by up to 90%.
• VitrA Shower systems use up to 50% less water and provide a perfect shower experience without
compromising your comfort.

Basin Mixer

Bidet Mixer

Kitchen Mixer

Shower Set

Hand Shower

Head Shower

Shower Column

2019

2020

2021

≥ 60% saving
30% saving ≥
≥ 60% saving
30% saving ≥
≥ 60% saving
30% saving ≥
≥ 60% saving

30% saving ≥
≥ 60% saving

30% saving ≥
≥ 60% saving
30% saving ≥
≥ 60% saving

30% saving ≥

65%
35%

57%
43%
28%
66%

38%
62%
33%
67%
33%

67%

100%

67%
33%
58%
42%
25%
69%

40%

35%
65%
25%
75%

60%

83%

67%
33%
55%
45%
14%
79%

40%
60%
38%
62%
33%
67%

100%

*European Standarts: 12L/min for Basin/Bidet/Kitchen Faucets; 20L/min for Shower Sets/Hand Shower/Head Shower/Shower Column

ABOUT

WE CARE FOR NATURE

WE DESIGN WITH PURPOSE

WE WORK FOR A BETTER FUTURE

WE THRIVE FOR CULTURAL & INSTITUTIONAL PROGRESS

APPENDIX

2,5 / 4 L WC Pan:

The World’s Most Water Saving WX Pan

2.5/4 liters dual flush WC and flushing system, one of VitrA’s revolutionary solutions and the world’s first WC

approved by German Standard Institution (LGA). It can reduce water consumption up to 60%.

Hygienic Waterless Urinal

VitrA waterless urinal’s environmental-friendly technology can save up to 150 tonnes of water every year and
provide superior hygiene at the same time.

Annual water saving for an average

four-person family

2,5 / 4 |

flush option

23 tonnes

3 / 6 |

flush option

17,5 tonnes

*European Standarts: 12L/min for Basin/Bidet/Kitchen Faucets; 20L/min for Shower Sets/Hand Shower/Head Shower/Shower Column

Based on daily usage of toilet for a person 5 times in a

day for average four person family (4 times 2,5 L and 3

L flush in a day for a person/ 1 times 4 L and 6 L flush

in a day for person)

ABOUT

WE CARE FOR NATURE

WE DESIGN WITH PURPOSE

WE WORK FOR A BETTER FUTURE

WE THRIVE FOR CULTURAL & INSTITUTIONAL PROGRESS

APPENDIX

All efforts to increase water and energy efficiency have been traditionally handled independently. However,

decreasing energy and water consumption serves the common goal of reducing greenhouse gas emissions.
Water conservation also helps save energy by reducing the treatment needs of public water. VitrA produces
innovative solutions to combat the environmental impacts of excessive energy and water use without
compromising comfort in the bathroom.

BlueEco Technology

Moved 90 degrees to the left, the BluEco cartridge provides a cold stream of water even when the tap handle is

in the middle. Hot water flows when the handle is moved to the left, thereby preventing the unnecessary use of
hot water. The cartridge offers up to 60% energy savings, enough to heat 17 tonnes of water per annum.

Touch Free Hand Wash Technology

• 40% of VitrA touch free basin mixers use only 1.3 litres/minutes water and reduce water consumption up to 90%
• VitrA continues to develop its touch free technology and expand touch free product range in order to increase
hygiene in public toilets and reduce excessive water use.
• VitrA’s touch free basin mixers are controlled by a built-in sensor and it detecs the user and contributes to water

saving by stopping the flow as soon as the user moves away from the detection area.

• Powered by mains or batteries, these mixers are completely safe thanks to waterproof wiring conforming to
IP 68 standards.

ABOUT

WE CARE FOR NATURE

WE DESIGN WITH PURPOSE

WE WORK FOR A BETTER FUTURE

WE THRIVE FOR CULTURAL & INSTITUTIONAL PROGRESS

APPENDIX

Aquaheat Technology – Thermostatic Bath Mixers

• AquaHeat mixers are fitted with a thermostatic cartridge to ensure a user-defined constant temperature and to provide comfortable use in both
shower and bathtubs.
• Thermostatic cartridge eliminates the need to adjust the temperature and the risk of scalding due to fluctuations in the temperature of the water
supply. Also, it provides constant temperature and prevents excess use of energy.
• The safety button is ideal for children and elderly people because it prevents water temperature from rising above 38 °C.
• The flow control button controls flow rate to provide water savings up to 35%. Safe touch technology offers a safer and more enjoyable shower by
preventing the mixer body from heating up.

ABOUT

WE CARE FOR NATURE

WE DESIGN WITH PURPOSE

WE WORK FOR A BETTER FUTURE

WE THRIVE FOR CULTURAL & INSTITUTIONAL PROGRESS

APPENDIX

Access To Energy

How we use energy has a direct impact on how we combat the climate crisis and the long-term sustainability of

our business: reducing our carbon footprint and the carbon intensity of our products, improving energy efficiency,

establishing energy independence, decreasing production and delivery costs and managing our reputation as
a responsible business.

EBPB has alternative energy plans in order to ensure the continuity of our services and products, and copes
with possible energy crisis scenarios using an adaptative and mitigation approach. We are working to increase
resilience in line with renewable energy investments and risk management under the management of our

joint Energy Committees and subcommittees with the Eczacıbaşı Group. EBPB uses the energy management
standard (primarily International Organization for Standardization [ISO] 50001) and its production facilities in
Bozüyük Ceramic Sanitary Ware (CSW) side has become the first facility in Turkey to be ISO 50001 compliant on

a sectoral basis. We are currently working on the integration of this system for all of our locations.

As a continuation of our efforts on energy management, we carried out more than forty energy efficiency

projects in 2021. Details of our energy use, total carbon, energy and carbon intensity can be found in Appendix III

Access to energy is divided into four topics: energy efficiency, renewable energy, climate risk management and
geopolitics. All components of energy consumption, energy efficiency and greenhouse gas emissions are given

in detail in the

appendix III.

In summary: We decoupled energy use from growth by 10%.

While the production volume has increased by 16.6% in 2021 compared to 2020, direct energy consumption has
increased by only 4.6% to reach 341.5 GWh. Indirect energy consumption increased 10.1% from 80.1 GWh to 88.3
GWh. Our total energy consumption increased by 5.69% compared to previous year and increased from 406 GWh
to 429 GWh. In 2021, EBPB produced 12.5 GWh of renewable energy. Our total energy footprint per ton decreased by
9.4% to 3.3 MWh. We have reduced our fuel oil consumption by 25.3% and our LPG/LNG consumption by 9.8% in 2021.

The total carbon emission of the bathroom group was measured to be 103.2 thousand tons of CO2 equivalent

and increased by 6.64% in 2021. Carbon emission per ton of production was 802 kg CO2 equivalent/ton
production and decreased by 8.6% in 2021.

We evaluate our energy efficiency projects under 6 different topics. These are; waste heat recovery with

economizers (cooling systems), hot air transfers, automation, line isolation, efficient equipment and equipment
reduction. We saved 16.56 GWh of energy through various energy efficiency projects we carried out in 2021. With

the cumulative effect of our previous projects, we have achieved an energy saving of more than 45 GWh this
year since 2016. Details of best practice energy saving projects are given below.

Energy & Production in EBPB

2019

2020

2021

100

110

120

130

100

105

Production

Energy Intensity

Carbon Intensity

122

105

100

ABOUT

WE CARE FOR NATURE

WE DESIGN WITH PURPOSE

WE WORK FOR A BETTER FUTURE

WE THRIVE FOR CULTURAL & INSTITUTIONAL PROGRESS

APPENDIX

Waste Heat Recovery

One of the most effective energy saving projects implemented in 2021 was the enhancement of waste
heat recovery systems. With our economizer cooling systems, we utilize the waste heat discharged into the
atmosphere from chimneys to heat the water we use in our operations. While heated water is transmitted to the
sections where it is used in the facility, some of the excess heat is used in the operating boiler room.

Thanks to this heat recovery, the consumption of energy required for heating is prevented, resulted with

exceeding 5.5 GWh energy savings only in 2021. With the use of economizer systems since 2016, a total of 32.39
GWh of energy has been saved until 2021. This rate corresponds to one third of energy saving projects in 2021,

71.9% of all energy savings since 2016.

Currently, most of the tunnel kilns in our factory have a waste recovery system. With recent developments and
installation of our waste heat recovery systems, we have reduced the temperature difference at the boiler feed
water outlet to almost zero and paved the way for tens of GWh energy saving potential.

Replacement of Outdated Equipment:

By updating the technology of dryers and motors, we prevented a total

energy consumption of 204 MWh in 2021.

Change to Eco-Friendly Lighting:

By replacing fluorescent lamps with LED lamps in certain areas of our

factories, we aim to achieve energy savings every year without changing the lighting intensity and lumination

quality. We plan to save 536 MWh of energy annually with more efficient lighting systems.

Digital Control and Adjustment of Heating:

We have prevented the use of unnecessary heating by digitizing

our heating expenditures and adjusting our internal heating according to the outside temperature.

Upon completion of the Bozüyük CSW Site in 2021, we plan to implement more energy saving projects such as

energy efficient hydraulic units, green product dryers, optimization on conventional casting benches etc. for an

overall energy savings up to additional 10 GWh per year.

Primary Energy Efficiency Projects

ABOUT

WE CARE FOR NATURE

WE DESIGN WITH PURPOSE

WE WORK FOR A BETTER FUTURE

WE THRIVE FOR CULTURAL & INSTITUTIONAL PROGRESS

APPENDIX

Renewable Energy

We increased our renewable energy investments in 2021 in order to reduce dependence on fossil-based energy

sources. We are making our plans to maximize the benefit to be obtained from renewable energy methods in

the coming years. Our renewable energy plans are on Solar, Wind and Hydrogen power.

Our solar energy investments planned in 2021 will be implemented gradually until 2024. We already installed
pilot scale panels on our factory roofs to observe the working conditions and seasonal conditions in Bozüyük.

The power plant to be established will have a capacity of producing 30,000 kWh per year with 52 panels on an

area of approximately 180 square meters.

With the total roof area of 125,000 m2 solar power installation that we aim to establish by 2024, we plan to get
an estimated 24.5 GWh of renewable energy capacity. When the targeted levels are reached by 2025, we will be

supplying up to 32.7% of our electricity from solar energy. With this investment in harmony with nature, we plan

to reduce our absolute carbon emissions in VitrA-CSW site by 12.2.

Due to our ongoing studies to lower our emissions, hydrogen seems to be the most efficient burning fuel for

our production facilities as it gives off water as a byproduct instead of carbon dioxide. In order to reduce our
dependence on natural gas, we plan to invest in hybrid ovens that cook not only with natural gas but also with
hydrogen. We evaluate all aspects of hydrogen production and use with our hydrogen working group under
the Group and are open to collaborating on this with other providers. We believe that using hydrogen cooking
techniques will support more environmentally friendly production in the longer-term.

In the same way as solar and hydrogen, we want to expand our energy supply portfolio by making use of wind
energy. We are also evaluating possible potential wind energy investments.

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