Protecting the environment is our number one priority in everything we do. We place particular emphasis on the fight against climate change and the management of the environmental impacts of our operations. Our approach, consistent with our sustainability principles, relies on optimal use of resources, energy efficiency, orientation to clean energy sources, and minimizing environmental impacts with a holistic and preventive ecological strategy. We focus on R&D projects to create value-added, sustainable technologies and environmental investments.

Environment and Waste Management

We carry out our environmental activities according to the Integrated Management System, which includes the ISO 14001:2015 Environmental Management System and consists of seven quality systems. Our motivation to go beyond statutory obligations in striving for continuous improvement with environmental performance indicators guides all our work. We value the circular economy, protecting natural resources and biodiversity across our supply chain, and we adopt the principle of zero waste.

Our work in this regard includes the following:

• Impact control on the receiving environment with measurement and analysis
• Water and wastewater analyze
• Emission measurements
• Waste management
• Control of marine pollution
• Continuous review of environmental impact dimension assessment analyzes
• Efficient and effective operation of wastewater treatment plant and hazardous waste incineration plant
• Management of chemicals
• Monitoring greenhouse gas emissions

Life Cycle Assessment (LCA)

We are improving the sustainability of our production process through the Life Cycle Assessment (LCA) Project of ACN (Acrylonitrile) and C4 products initiated in collaboration with Izmir University of Economics. We track the process from the entry of crude oil into the STAR Refinery to the transfer of naphtha to Petkim and calculate its environmental impacts such as carbon footprint, water consumption, and acidification.

The project contributes to Petkim meeting customer expectations in terms of sustainability. Additionally, it holds significance in enhancing production process efficiency, minimizing environmental effects, and being prepared for the upcoming Border Carbon Adjustment.

Optimizing of Water Consumption

We consider water consumption generated during our activities as one of the significant environmental impacts. We use water, a finite resource on our world, effectively while also reducing the amount of clean water we use through recycling. Awaring of the importance of optimizing water use in our current operations, we take swift action to detect and rectify leaks in our factory's firewater, process water, and cooling water systems. By continuously monitoring and recording water consumption quantities, we conduct improvement initiatives. In this regard, in 2022, we reduced our average water consumption from 250 t/h in 2021 to 120 t/h.

In line with our sustainability goals, our work was ranked 8th among 206 companies in 2021 in the 'ESG Rating', in which the world's leading institutions are evaluated under the headings of 'Environment, Social and Governance' by the independent auditor institution. In addition, we were entitled to receive a 'Zero Waste Certificate' from the Ministry of Environment, Urbanisation and Climate Change. We have the 'Green Port' certificate, which aims to reduce environmental pollution, increase energy efficiency, ensure waste recycling and ensure continuity in occupational health and safety practices.

The environmental impacts of all our activities are evaluated, and as part of these assessments, we create action plans to improve our environmental performance. We develop an ecological culture in our company and work on raising awareness. We do afforestation, in particular in our zones of activity.

We conduct regular observations, reports, and calculations to reduce greenhouse gas and pollutant emissions and improve air quality. Accordingly, we aim for a 40% CO2 reduction in our Scope 1 and Scope 2 emissions by 2035 and NET ZERO emissions by 2050. Our goal is also to increase the use of renewable energy resources in electricity generation through our investments in the wind power plant.

Energy Management

The petrochemical industry is one industry that demands high energy levels and consumes a great deal of energy. Therefore, energy efficiency studies are critical in every process. To use our resources efficiently, we systematically carry out "Energy Efficiency" studies within the scope of Energy Management, where we follow ISO 5001:2018 standards. Each year, we carry out value-added projects and make sure that these projects are reflected in the field.

We continue to make the necessary improvements to manage energy consumption and for long-term, sustainable, and safe production with minimum energy cost. We regularly carry out internal audits.

We carry out energy efficiency and conservation projects in our plants, production sites, and office buildings. We were entitled to receive support for the 4 VAPs (Efficiency Enhancing Projects) we completed in 2020 after the Ministry of Energy and Natural Resources inspection in the field on October 15, 2021. We saved 2,195 tons of natural gas per year by reducing the LS steam used in the air heaters of the steam production facility. As a result of chemical cleaning in the ethylene F101H furnace, we achieved a 694-ton reduction in CO2.

In 2022, we received approximately 900,000 TL in cash grant support from the Ministry of Energy and Natural Resources for the four Productivity Enhancement Projects (VAP) we developed. On March 31, 2022, we submitted applications for two new VAP projects to the Ministry of Energy and Natural Resources. The Ministry conducted a preliminary field inspection on July 27, 2022, and decided that these two projects are eligible to proceed to the field implementation stage. It is anticipated that approximately 2.8 million TL in cash grant support will be provided to Petkim for the implementation of these projects.

Our Wind Energy Plant (WEP) project, completed in 2017, consists of 17 wind turbines with a total mechanical capacity of 51 MW. We aim to promote the impact of Petkim WEP on renewable energy generation and internationally document the greenhouse gas emission reduction achieved by the project. In line with this, we are supporting initiatives conducted under the Global Carbon Council (GCC) Voluntary Emission Reduction Certification.

We aim to solidify our leading position in the industry through the actions we have taken towards the transition to renewable energy. In this regard, we have launched the Petkim Global Carbon Council (GCC) Certification Project. The primary goal of the project is to expand the impact of our Petkim Wind Energy Plant (WEP) in renewable energy production to a broader audience. In line with this, we are supporting the efforts under the Global Carbon Council (GCC) Voluntary Emission Reduction Certification to document the greenhouse gas emission reductions provided by the project on an international scale.

We are advancing towards a carbon-free and sustainable future with firm steps. In line with our sustainability strategy, we launched a total of 24 projects in 2022. Through these projects, we achieved a reduction of 48,000 tons of CO2 emissions and saved 32,000 tons of water.

We are joining forces with STAR Refinery, one of our partners within the SOCAR Türkiye network. To facilitate the integration of our cogeneration facility at the Petkim Energy Production complex with STAR Refinery, we have successfully implemented the Petrochemical Refinery Energy Integration Project. This initiative has allowed us to achieve substantial cost reductions while ensuring top-quality production, enhanced efficiency, and security in our raw material supply. Our project received recognition in the form of the 'Cogeneration Plant Special Award' at the 9th ICCI Energy Awards. Serving as an inspiration to the entire industry in the realm of energy efficiency, we remain committed to developing new projects that proudly carry the message, 'Our Energy is for the Future.'

Energy efficiency studies at RPBU in 2023

As SOCAR Türkiye RPBU, we base our energy activities on respect for people and the environment by focusing on protecting our natural environment and reducing greenhouse gas emissions with minimum environmental impact. In this context, waste is reduced and the recycling rate is increased. The use of natural resources is reduced, proactive management is adopted at every point, and domestic and renewable resources are given priority with a sustainable development and growth policy.

Energy supply and demand balance is created with an energy strategy that optimizes technological, economic, social and environmental factors; raw materials, products and services are supplied and used in an energy efficient manner; energy performance is taken into consideration in the design of our facilities, systems and processes.

A successful strategic energy management plan sets goals, progress and reports results while building long-term relationships with energy users and targeting persistent energy savings. Effective planning ensures continuous improvement of energy efficiency, sustainability and can reduce energy costs.

In 2023, it is planned to save 650 000 Gcal/year and the corresponding 160 000 te CO2/year with 40 investment and non-investment energy efficiency projects as a result of the joint work of all disciplines to become a part of the solution for accomplishing the goal of sustainability within Petkim and Star Refinery.