Arcelik A.S. (IST: ARCLK) (“Arcelik”), the global leading consumer durables and electronics manufacturer, scored 87/100 (Score date: October 21) in the 2022 S&P Global Corporate Sustainability Assessment (CSM), an independent evaluation of the world’s largest companies that assesses their sustainability performance and environmental, social, and governance (ESG) efforts.
The company also achieved the highest score out of 46 companies assessed in the DHP Household Durables Industry. The recognition reflects Arcelik’s ambitious commitment to a sustainable future, placing the company once again as the benchmark brand in the manufacturing industry. Additionally, Arcelik has for the sixth year in a row been listed in the Dow Jones Sustainability Indices (DJSI).
The recognition follows the 2022 United Nations Climate Change Conference (COP27), where the company declares its commitment to push towards its science-based emissions reduction targets for their Scope 1, 2, and 3 GHG emissions by 50.4% in line with the Paris Agreement goals. This further demonstrates that Arcelik understands it has a responsibility to lead the way in energy transformation and a more sustainable future.
Prior to this, Arcelik had recently been recognised by the World Economic Forum (WEF) for its progress in on-site sustainability measures at its Ulmi, Romania plant. The facility has recently been awarded Sustainability Lighthouse status by WEF, making it one of the ten Sustainability Lighthouse sites in the Global Lighthouse Network. Leading the way in efficient and sustainable manufacturing, the Ulmi plant is just one of the sites at Arcelik that uses cutting edge technologies for enhanced energy and water efficiency.
Arcelik is also one of 45 companies that have been awarded the former Prince of Wales’ Terra Carta Seal in recognition of the company’s commitment to creating a sustainable future.
Commenting on Arcelik’s consistent inclusion in the Dow Jones Sustainability Indices, CEO Hakan Bulgurlu said: “We are honoured to have been included in the DJSI for a sixth year in a row. It is an even greater privilege to have achieved the highest score in our sector for four years running, a result of our relentless efforts in pushing for a better future for all. Our climate goals sit at the heart of our business and impact everything we do, from our products all the way to our people. This prestigious recognition is a reaffirmation of our solid commitment to sustainability and incredibly encouraging for our business. Sustainability efforts are now of even greater significance as the world is going through turbulent times, ridden with economic instability, high inflation rates, and an energy crisis. In line with our purpose-driven business strategy, we will continue to design products and develop technologies that not only live up to our consumers’ expectations but also raise the standards for a greener industry.”
ARCELIK’S 2030 SUSTAINABILITY TARGETS
Arcelik, 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 (based on the availability of green electricity in those countries).
Arcelik aims to decrease the energy consumption used to produce each product by 45% by 2030 (compared to 2015 baseline).
Arçelik works to reduce water withdrawal per product by 45% (compared to 2015 base year) and increase the water recycling and reuse ratio to 70% in all manufacturing plants.
Arcelik commits to make a minimum USD 50 million investment in renewable energy and energy efficiency by 2030.
ABOUT ARCELIK’S REVISED SCIENCE-BASED TARGETS (STILL BEING REVIEWED BY SBTi) AND OTHER RECOGNITIONS:
Arcelik has revised its initial science-based targets, to contribute to the worldwide efforts to limit global warming to 1.5(degrees celsius), 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.
Arcelik is committed to being a Net-Zero company by 2050 and making this target compatible with the SBTi Net-Zero 2050 Standard
Arcelik was selected as the most sustainable white goods company to enter Corporate Knights Global 100 World’s Most Sustainable Companies ranking.
Arcelik became the first and only company from its industry to receive the Terra Carta Seal by the Former 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(R)and the Dow Jones Industrial Average(R). 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. Arcelik 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 45,000 employees throughout the world, Arcelik’s global operations include subsidiaries in 53 countries, and 30 production facilities in 9 countries and 12 brands (Arcelik, Beko, Grundig, Blomberg, ElektraBregenz, Arctic, Leisure, Flavel, Defy, Altus, Dawlance, Voltas Beko). Arcelik, which is among the three largest white goods companies in Europe with its market share (based on volumes), reached a consolidated turnover of 6.5 billion Euros in 2021. Arcelik’s 29 R&D and Design Centers & Offices across the globe are home to over 2,300 researchers and hold up to 3,000 internationally registered patent applications to date. For the 4th consecutive year, Arcelik achieved the highest score in the DHP Household Durables industry (based on the results dated December 2022) in the Dow Jones Sustainability Index of the S&P Global Corporate Sustainability Assessment. Through its leadership position in sustainability and credible decarbonization roadmap for achieving net zero, Arcelik became the first and only company from its industry to receive the Terra Carta Seal from the former Prince of Wales. Arcelik’s vision is ‘Respecting the World, Respected Worldwide.’
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Source – Arcelik