02

VALUE CHAIN

Our sustainability target covers our entire value chain. Therefore, we are completely handling sustainability, covering all life-cycle processes from the supply of raw materials to the disposal of our product waste. In addition, we are trying to bring benefit to all our stakeholders because we know that we have the power to transform the sector in terms of sustainability. For this transformation, we aim to ensure the development of our suppliers. Through systematic inspections, we encourage our suppliers to adhere to the criteria we set. In 2016, we inspected 176 suppliers. In addition, through our structuring efforts in our logistics network, we have reduced carbon emissions in our distribution channels by about 430 tons since 2014. With the optimization conducted in our six plants, we have reduced carbon emissions originating from material supply by 20% and emissions by 2,000 tons. We aim to further reduce carbon emission by 20%, which means 2.000 tons by 2024.

We are focusing on the Sustainable Purchasing-Supply side of our Value chain with Sustainable Agriculture Practices with our Farmers.

We supply 80% of our wheat, our main raw material, from domestic markets as we put heavy emphasis on sustainable raw material supply. The number of farmers we work with on a contractual basis has reached 2.900. We prioritize the agreements with the farmers with whom we have a direct contact. Thus, we are supporting local development projects by protecting the land on which we produce with our farmers. With the cooperation of Bahri Dağdaş International Agricultural Research Institute, we have developed a species of wheat that is highly efficient and resistant to disease and drought. We call this new species Ali Aga. The Ali Aga species is registered by the Variety Registration and Seed Certification Center and the Ministry of Food, Agriculture and Livestock of the Republic of Turkey.

By supplying cocoa from abroad as a sponsor for PACTS (Processors Alliance for Cocoa Traceability and Sustainability) program, we are forming a professional value chain that would respect the environment while contributing to efficiency.