2017BESLER

SUSTAINABILITY

REPORT

2017

SUSTAINABILITY

BESLER

REPORT

About the Report

About Besler

CEO Message

Sustainability Approach

Corporate Governance

PRODUCTS – INSPIRE

Nutritious and safe products

Production Chain

R&D and Innovation

PEOPLE – EMPOWER

Employees

Occupational Health and Safety

PLANET – RESTORE

Environmental Management

Tackling Climate Change

Waste and Packaging Management

Water Management

7

13

21

29

TABLE OFCONTENTS

Dear Stakeholders,

Since its establishment Besler has been operating with a focus on sustainability in line with the sectoral trends and risks. As a result, we are more than happy to publish our first sustainability report, which contains our activities.

In parallel to the sustainability activities accelerated by Yıldız Holding in line with the Holding's global sustainability leadership vision, Besler also increased its activities on sustainability. This year, we took significant steps and defined our material issues; and established a Sustainability Board to achieve a more coordinated and target-oriented structure.

We have the goal to maintain our leading position in oil industry in sustainability area as well. So far, we have achieved a lot with our performance, particularly in environmental area. In 2015, we were awarded the first prize with our Investment in the Future: Water project in the category of Water Management in Sustainable Business Awards at the Green Business Summit. Zero Loss Journey with Corporate Energy

CEO MESSAGE

Movement Project, initiated for the whole company to decrease energy loss and increase efficiency in production, was presented the first prize in 2017 ISO Energy Efficiency Awards, organized by Istanbul Chamber of Industry (ISO). We have the goal to achieve more in the following periods by increasing our performance.

We adopt the approach to create value with new products and in social areas, besides environmental area. We produce high-quality products with a wide portfolio and become a reliable partner of our customers; whilst working for the satisfaction of our employees. We consider these efforts as a promise to the future generations.

I would like to thank all our stakeholders, particularly our employees, who contribute a lot during our sustainability journey.

Şükrü ÇİN

Vice President, Oil Work Unit Group

Established in 1992 in Istanbul and operating as a subsidiary of Yıldız Holding, Besler Gıda produces consumer margarines, oils, industrial and bakery margarines.

Exporting 11% of its production to all six continents, particularly to European countries, Besler is the leading company in the food processing industry in the category of consumer type margarines. Besler reaches a total production capacity of 280,000 tons/year. Having two margarine production facilities, oil filling facility, the one and only fraction facility of Turkey, two oil refinery plants in Istanbul, Besler Gıda also produces its own energy with its cogeneration plant.

Marsa Yağ Sanayi ve Tic. A.Ş., a subsidiary of Besler, produces margarines to be used at food processing industry, catering and pastry sectors. The company produces Ustam group products to be consumed by cake chefs and kitchen chefs, particularly at hotels, holiday villages, restaurant kitchens and bakeries. The factory of the company in Adana is the largest factory in Turkey built up over a single area. The factory has a production capacity of 200,000 tons of margarine and 100,000 tons of oil per annum. The company exports goods to the USA as well as EU countries thanks to its production quality in line with EU standards.

About Besler

The first sustainability report published by Besler Gıda ve Kimya Sanayi ve Ticaret A.Ş. presents the performance and activities of the company in corporate governance, social and environmental areas. The report, which contains the sustainability activities that were framed in line with the sustainability vision of Yıldız Holding, covers the data related to the period between January 1st and December 31st, 2017.

This report has been prepared according to the GRI Standards, while referring to the GRI G4 Food Sector Supplement, as well as the Processed Foods Guideline of the Sustainability Accounting Standards Board (SASB).

You can share your questions, comments and suggestions related to the report via info@besler.com.tr

About the Report

The basis of our sustainability approach is based on "Make Happy Be Happy" motto of Yıldız Holding, which primarily focuses on the happiness of the stakeholders. This approach, which defines sustainability as a promise to the future generations, is shaped around three main issues product, people and planet.

Planet – Restore: Protect the environment for future generations by preserving natural resources and achieve growth without having any adverse impacts on the environment

People – Empower: Adopt a business model that facilitates social and economic development of the employees and the society, social equality and welfare

Products – Inspire: Enable access of people to nutrition and food products, encourage healthy diets with products having high nutritional values and offer these products as a lifestyle

We consider that having an ethical, fair, transparent, accountable and responsible corporate governance approach in all our activities is a key feature to achieve sustainable success. At Besler Gıda, the Board of Directors, the highest level of corporate governance structure, is composed of six members.

We are aware that increasing the performance of the company in environmental, social and corporate governance fields and accurately managing the risks in these fields have an impact on our business success. To be able to effectively achieve these, we restructured our company in 2017 and established a Sustainability Board that defines sustainability strategy, executes policies, goals and practices in sustainability and reports to the Board of Directors for monitoring and auditing purposes. The goal to establish a Board is to carry out the activities in a more coordinated manner to escalate the sustainability efforts.

Reporting directly to the Board of Directors, the Sustainability Board is chaired by the Vice President in charge of Oil Work Unit Group. The Sustainability Board has 9 members, including Financial Affairs Director, Marketing Director, Supply Chain Director, R&D Director, Besler Factory Director, Export Director, Sales Director (Turkey), Human Resources Manager. The secretariat works of the Board is carried out by the Besler Factory Director.

We will manage our sustainability activities and guide our sustainability strategies more efficiently in the upcoming years thanks to the structure that we have established and carry out practices that will improve the performance of the company.

Sustainability Board

Material Issues

Planet

Water management

Waste management

People

Talent management

Supply chain management

Product

Our sustainability approach focuses on the material issues based on the views of our stakeholders, in line with the approach of Yıldız Holding. We organised in-house workshops with the participation of experts and executives from various departments to define the material topics. Furthermore, we defined the priorities of the company by analysing the global and sector-related risks and trends. We finalised our material issues according to the comments of key stakeholders.

We manage these material issues under three main sustainability fields of Yıldız Holding and guide our activities in line with the vision of the Holding, as well as 2030 Sustainable Development Goals. We attach great importance to include the views of our stakeholders to the process.

We consider employees, governmental institutions, non-governmental organisations, associations, customers, suppliers and universities as our main stakeholder groups. Our website, social media accounts, satisfaction surveys, meetings, memos, career days, etc. sustain the communication with the stakeholders.

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SUSTAINABILITY APPROACH CORPORATE GOVERNANCE

Energy and climatemanagement

Occupational healthand safety

Health and Nutrition (newproduct development)

Digital transformationand innovation

DECENT WORK ANDECONOMIC GROWTH

DECENT WORK ANDECONOMIC GROWTH

RESPONSIBLECONSUMPTIONAND PRODUCTION

RESPONSIBLECONSUMPTIONAND PRODUCTION

CLIMATEACTION

GENDEREQUALITY

All our activities and operations are based on an fair and ethical approach. Accordingly, all our business processes are guided by the Code of Conduct defined under Yıldız Holding umbrella. The Code covers issues such as compliance to laws and regulations, anti-bribery and fraud, social responsibility and donations, separating company's interests from the personal ones, protecting company's assets and data confidentiality.

It is important that the Code is adopted and applied by our employees, as well as the parties that we are

Ethics

As part of the risk management process adopted by the company, existing and emerging risks that may threaten the existence, continuity and development of the company are detected and necessary measures are taken. Financial, nonfinancial and operational risks are defined and managed. Risks are mapped through a risk matrix and followed up using this regularly updated matrix. In addition to the internal audit system, auditing units of the Yıldız Holding also carry out regular audits in the company.

Risk Management

Yıldız Holding Code of Conduct can be accessed here.

involved in professional partnerships. The Code of Conduct is distributed to all employees, a written declaration is signed by each employee indicating that they understood the rules and training on ethics is provided. The Code of Conduct is expected to be adopted throughout all contracts signed with the third parties.

Employees can directly inform the Board of Directors in written, call Ethics Violation Line (0090 216 524 34 24) run by the system of Yıldız Holding or send an e-mail to etik.bildirim@yildizholding.com.tr regarding

any violations. Furthermore, all our stakeholders, including particularly our customers and suppliers, can contact Yıldız Holding Customer Communication Centre (CCC) to report undesirable situations such as infringement. No notifications were received in 2017.

IT IS IMPORTANT THAT THE CODE IS ADOPTED AND APPLIED BY OUR EMPLOYEES, AS WELL AS THE PARTIES THAT WE ARE INVOLVED IN PROFESSIONAL PARTNERSHIPS.

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PRODUCTS /INSPIRE

At Besler, we inspire people to have healthy diets with the products we offer. Besler offers high quality and nutritious products in line with the customer-oriented working principle.

We endeavour to maintain our leading and innovative position in the sector since our establishment. We began our journey in 1995 with the breakfast marga-rine production and have widened our portfolio with consumer margarines, oils, industrial and bakery margarines since then.

Product Portfolio

Catering Industrial Pastry

Tanker Consumer liquid Consumer Margarine

14% 28%

9%

10%

7%

31%

PRODUCTS –INSPIRE

Nutritious and safe products

At Besler, widening the product portfolio and offering new products are among our sustainability priorities. In line with this priority, we exert our efforts to have high quality production and produce balanced and healthy foods. Accordingly, we produced Turkey's first butter-flavoured margarine in tubs (TEREMYAĞ), followed by margarines with honey and strawberry in tubs as well as cream (TEREMYAĞ GURME). All of the margarines in tubs and sticks within our product portfolio, 95% of the internal market bakery margarines and industrial products do not contain trans fats.

For a healthy life, carbohydrates, fats, proteins, vitamins, minerals and water shall be consumed in sufficient amounts. Fats included in the nutrition groups are the main energy source of the body. It is

recommended to provide approximately 25-35% of our daily energy from the fats. Taking an average of 30%, 10% of this energy shall be supplied from saturated fatty acids (sticks), 10% shall be supplied from monounsaturated fatty acids (olive oil, hazelnut oil, etc.) and the remaining 10% shall be supplied from polyunsaturated fatty acids (sunflower seed oil, maize oil, etc.).

We owe our success of being listed among the most popular margarine brands in Turkey to the importance we place on food safety and high quality production. Besler Food Safety Policy adopts the working principle of satisfying the customer and consumer requirements and expectations and offer high quality and safe products in compliance with international standards.

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In 2017, Ona Kahvaltılık (Breakfast) and Luna Tub products were presented Superior Taste Awards from the International Taste & Quality Institute, based in Brussels. In addition, Besler was awarded the first prize and selected as the most successful exporter of 2017 by the Istanbul Exporters' Association in the category of Vegetable Oils and Oilseeds.

BESLER

In line with our goal to become an exemplary and pioneering company in Turkish margarine industry since we started production, we were the first company in Turkey, certified with Integrated Management System ISO-9001, ISO-14001 and OHSAS-18001. Certified with ISO 22000 Food Safety, as well as getting the certifications of American Institute of Bakery (AIB) and British Retail Consortium (BRC), we sustained our pioneering position in the sector.

100% of our production comes from the facilities with food safety certificates and all products are evaluated in terms of consumers' health and safety. In 2017, no non-conformance was reported regarding the health and safety impacts of our products.

We supply all products used during production with good grade certification. As a result, all products that contact food are guaranteed to be in compliance with food safety standards.

Hygiene is among the most significant issues in supplying high quality and healthy products. Therefore, we place hygiene barriers at the entrances to the production area and visual and written notices about the entrance rules to the production area. As part of the food safety procedures, the internal audit team tours the site every month and then the visuals of the non-conformances are shared with the employees at the common areas. In addition, all visitors are explained the rules regarding food safety within the facility at the entrances verbally and in written.

As part of the European Union Smart Electronics – EURIPIDES "Smart Packing, software and nanoencapsulation" development project, the purpose is to develop natural antioxidant agents for margarines targeting the conservation of product quality; and thus, extension of the shelf-life.

IN 2017, THE NUMBER OF SUPPLIERS THAT SUCCESSFULLY COMPLETED THE ENVIRONMENTAL AND SOCIAL AUDITS INCREASED TO 50.

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Started its journey in 1992 with a production capacity of 60 tons of margarine, Besler Gıda increased its capacity every year and reached a production capacity of 440,000 tons in 2017. The best practices implemented during the production processes and our suppliers that have grown and developed together with our company are the keys that lie behind this success.

It is of great importance to purchase the accurate raw materials from the accurate suppliers to be able to produce healthy, high quality and delicious products that conform to the expectations of the customers. Hence, our goal is to reach operational perfection at every stage of our production cycle to be able to

We believe investing in R&D and innovation is crucial to be able to carry out sustainable, competitive and innovative projects in the food processing industry. Besler brand has the first and only fraction facility and the fraction products in Turkey.

We established the first R&D Centre in the vegetable oil and margarine sector in Turkey and Yıldız Holding food processing group in line with the importance given to the R&D and innovation activities. Opened in 2016, 15 researchers and technicians work in the centre. R&D Centre carries out various projects in collaboration with universities, TÜBİTAK-MAM (The Scientific and Technological Research Council of Turkey Marmara Research Centre) and institutions operating

In 2017, the budget reserved for R&D activities exceeded 8 million Turkish liras, which quadrupled the budget in 2015. Meanwhile, the share of R&D in the turnover doubled compared to 2015.

Production Chain R&D and Innovation

achieve an efficient supply chain management, which is among our material issues.

The number of suppliers that we work with increased by 3% compared to 2015 and reached 1143. 95% of these suppliers are local suppliers.

We audit our suppliers with respect to food safety, quality, environmental and social issues. The audits take place at the suppliers' production facilities and action plans are developed. The suppliers are evaluated based on their risk levels and annual audit schedules are prepared according to these risk levels. In 2017, the number of suppliers that successfully completed the environmental and social audits increased to 50.

under the Ministry of Agriculture. Consisting of highly equipped Fat and Oil Technology Pilot plants, the centre carries out two separate Technology and Innovation Grant Programmes Directorate (TEYDEB) projects funded by TÜBİTAK and the General Directorate of Agricultural Research and Policies (TAGEM) project funded by the Ministry of Agriculture. With the TEYDEB projects, we focus on the development of imported value added products. Accordingly, we have completed two projects and two other projects await approval. The centre continues to work on a project regarding high quality fat and margarine development that does not include any trans fats.

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Employees can send their improvement suggestions and comments regarding the operations to the related departments through the Brainbox system of the Yıldız Holding and receive feedback. As a result, each department and classification contributes to the creation of innovative ideas.

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2015 2016 2017

8.025.212 TL

2.431.095 TL

0

1000000

2000000

3000000

4000000

5000000

6000000

7000000

8000000

9000000

10000000

R&D budget - total (TL)

3.367.436 TL

PEOPLE – EMPOWER

Number of Employees by Category

White-collar Blue collar

63%

37%

WE PRIORITIZE TALENT MANAGEMENT AND OCCUPATIONAL HEALTH AND SAFETY ISSUES WHILE DESIGNING HUMAN RESOURCES PROCESSES.

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We adopt a business model through which we support social and economic development of the employees and people and get stronger together with our stakeholders. We empower our employees and suppliers with the development opportunities we offer.

We attach great importance to offer equal opportunities and increase diversity in the company. We particularly support women in the business world and have equal rights during recruitment. The ratio of women working at senior management positions is 28%.

PEOPLE –EMPOWER

The success of our expert and qualified employees has played a significant role in our steady growth and competitiveness. Placing utmost importance to customer orientation, we strongly believe that customer satisfaction can only be achieved by satisfied employees. Accordingly, we create a diverse, fair and healthy work environment for the satisfaction of the employees, the most valuable asset of the company. We empower them by increasing their competencies. We prioritize talent management and occupational health and safety issues while designing human resources processes.

We continue growing with the new, qualified workforce every year. The number of employees increased approximately 7% compared to 2015 and reached 658. 37% of the employees are white collar; while the remaining 63% is blue collar and all blue collar employees are included in the collective labour agreement.

Employees

We guide our employees to discover their personal and professional potentials and develop their competencies accordingly. Monitoring the changes in the sector we operate and varying customer expectations, we invest in human resources to maintain our competitiveness. We design our human resources practices with respect to the goals of keeping our specialized employees in the company and becoming a preferred workplace. As part of equal opportunities and fair management approach, we objectively evaluate the performance of the employees, guide them through their career paths, provide them training and listen to their feedbacks.

Investment in Employees

We evaluate the performances of our employees based on targets and competencies thanks to our Performance and Career Management. A Performance Management System defined by Yıldız Holding is applied to white collar employees. Performance system consists of three main periods, i.e. goal setting, interim evaluation and evaluation periods, repeating every year.

We integrate the goals of the company with the goals of the white collar employees; thus, increase our organizational efficiency. The existing and potential performances of the employees are measured based on Yıldız Holding's Leadership Competencies. The results of the evaluation directly impact the development and career planning of the employees, human resources planning, remuneration and determination of the amounts of performance-based bonuses.

On the other hand, blue collar employees are

Performance and Career Management

TargetSetting

InterimEvaluation

Evaluation

Performance ManagementSystem

22 23

evaluated monthly. We provide feedback to employees, define their personal development areas and thus, plan accordingly. We have revised the performance targets of the blue collar employees since 2017. The plan is to have 90% objective targets in the performance system in the following periods.

Career planning and talent management process that prepares our company to the future is followed under Human Resources Planning (HRP). During the process, organization and human resources are planned beforehand, existing human resources competencies are evaluated and the skills of the employees are developed and followed up in line with their career planning. Coaching and mentoring practices are carried out in compliance with the Yıldız Holding procedures. 70-20-10 model compliant development tools are used for Human Resources practices. The model holds that employees obtain 70% of their learning from on-the-job experience such as expanding their existing responsibilities, rotation, volunteer projects, 20% from various communication means within the company such as mentorship, coaching, etc., and 10 percent from formal learning methodology including training, conferences, certification programs, etc. Furthermore, Besler participates in the Master-Apprentice gatherings held at Yıldız Holding and supports coaching activities that enable integration between generations. We First application enables us to give priority to the job

applications from Yıldız Holding and its subsidiaries.

We apply a remuneration policy in parallel with Yıldız Holding's Remuneration System. Besides performance evaluation results, company's remuneration raise budget, labour force market researches, the target competitive position in the sector, company's performance and economic indicators are also considered. Whilst deciding on the remuneration of white collar employees, all salaries are kept within the previously defined range according to the classification of the employees. Remuneration is mainly based on the classification of the employees. The remuneration raise of blue collar employees are decided as part of the collective labour agreement. Fringe benefits are offered to the employees according to the positions they hold.

Moreover, white collar employees are included to the Instant Rewarding System of Yıldız Holding. According to the Instant Rewarding System, managers may nominate the employees who significantly contribute to the company to be rewarded. If the suggestions and evaluations of the related employee for Instant Rewarding reported directly to their senior manager are deemed appropriate, the employee is rewarded. On the other hand, blue collar employees may reach out to Yıldız Holding Customer Communication Centre to provide suggestions on whatever issues they would like to highlight as part of the “Akıl Küpü” (Kaizen Ideas) suggestion program. Those who provide the best suggestions are rewarded. Accordingly, 57 employees were presented Instant Rewards; while 106 employees were rewarded Stars of the Month awards.

We offer training opportunities to support the personal and professional development of all employees. The training subjects are planned considering the company goals, human resources planning, performance indicators and expectations of the employees. Hence, leadership journey training and other basic training are provided. Training is provided to both white collar and blue collar employees.

As part of the Leadership Journey Training, the first level managers are provided the First Step to the Leadership; whilst mid and high-level (director) managers are provided Leadership Map and Leadership Compass training, respectively. A Leadership Summit is organized for general managers and senior executives.

In addition, competency development, professional development, occupational development, foreign language, occupational health and safety, food safety, zero error training and quality system training are provided according to the requirements of the employees. Orientation training, which gives information about the company and work processes, is provided to the newly recruited personnel. In 2017, 12.3 hours of training were provided per employee and the subcontractor's employees were provided 19 hours of training per employee. The target is to increase the average training hour per employee to 25 hours in the following year.

Photography, travel, gastronomy clubs of Yıldız Holding are open to all employees who would like to socialize in their professional lives. Moreover, activities such as Youth Club Sapling Planting, Metro Campaign, Y Generation Interviews, Meeting Culture were participated by all employees as part of the Operational Perfection Project of Besler Gıda.

Training and Development

We integrate the goals of the company with the goals of the white collar employees; thus, increase our organizational efficiency. The existing and potential performances of the employees are measured based on Yıldız Holding's Leadership Competencies. The results of the evaluation directly impact the development and career planning of the employees, human resources planning, remuneration and determination of the amounts of performance-based bonuses.

On the other hand, blue collar employees are

24 25

evaluated monthly. We provide feedback to employees, define their personal development areas and thus, plan accordingly. We have revised the performance targets of the blue collar employees since 2017. The plan is to have 90% objective targets in the performance system in the following periods.

Career planning and talent management process that prepares our company to the future is followed under Human Resources Planning (HRP). During the process, organization and human resources are planned beforehand, existing human resources competencies are evaluated and the skills of the employees are developed and followed up in line with their career planning. Coaching and mentoring practices are carried out in compliance with the Yıldız Holding procedures. 70-20-10 model compliant development tools are used for Human Resources practices. The model holds that employees obtain 70% of their learning from on-the-job experience such as expanding their existing responsibilities, rotation, volunteer projects, 20% from various communication means within the company such as mentorship, coaching, etc., and 10 percent from formal learning methodology including training, conferences, certification programs, etc. Furthermore, Besler participates in the Master-Apprentice gatherings held at Yıldız Holding and supports coaching activities that enable integration between generations. We First application enables us to give priority to the job

applications from Yıldız Holding and its subsidiaries.

We apply a remuneration policy in parallel with Yıldız Holding's Remuneration System. Besides performance evaluation results, company's remuneration raise budget, labour force market researches, the target competitive position in the sector, company's performance and economic indicators are also considered. Whilst deciding on the remuneration of white collar employees, all salaries are kept within the previously defined range according to the classification of the employees. Remuneration is mainly based on the classification of the employees. The remuneration raise of blue collar employees are decided as part of the collective labour agreement. Fringe benefits are offered to the employees according to the positions they hold.

Moreover, white collar employees are included to the Instant Rewarding System of Yıldız Holding. According to the Instant Rewarding System, managers may nominate the employees who significantly contribute to the company to be rewarded. If the suggestions and evaluations of the related employee for Instant Rewarding reported directly to their senior manager are deemed appropriate, the employee is rewarded. On the other hand, blue collar employees may reach out to Yıldız Holding Customer Communication Centre to provide suggestions on whatever issues they would like to highlight as part of the “Akıl Küpü” (Kaizen Ideas) suggestion program. Those who provide the best suggestions are rewarded. Accordingly, 57 employees were presented Instant Rewards; while 106 employees were rewarded Stars of the Month awards.

MOREOVER, WHITE COLLAR EMPLOYEES ARE INCLUDED TO THE INSTANT REWARDING SYSTEM OF YILDIZ HOLDING.

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Yıldız Holding Ethics and Working Principles can be accessed here.

Ratio of Employees by Years

0-5 years 5-10 years 10 years +

%38

%44

%18

We attach great importance to offer a work environment where employees feel the sense of belonging and make their long-term career plans in the company. 18% of the total number of employees has been working at Besler Gıda for 5 to 10 years; while 38% has been working in the company for over 10 years. We listen to all feedbacks from the employees and try to improve our human resources processes.

We organize breakfasts that gather senior management with employees. Whilst common communication platform gathers senior management with white collar employees, industrial relations meetings gather senior management with blue collar employees. For the Door to Door HR project, human resources managers visit production, technical and other departments and the feedbacks of the employees are listened during the meetings held at their work environment.

Employee loyalty surveys are conducted once in every two years to be able to measure employee loyalty. This year, the employee loyalty rate was measured 73% where 99% of the employees participated in the survey.

We placed grievance boxes for the employees to provide feedbacks. Furthermore, our employees can send an e-mail to etik.bildirim@yildizholding.com.tr or call +90 216 524 34 24 about any actions and processes that they may suspect to be illegal and/or breach Yıldız Holding Ethics and Working Principles. All of the feedbacks provided in 2016 and 2017 were replied and approximately 40% of these feedbacks were resolved.

Employee Loyalty

Protecting the health of the employees and providing them a safe and secure environment is among our material issues. We fully comply with the occupational health and safety laws and regulations. Moreover, we detect risks beforehand and take preventive measures to be able to provide a safe working environment to our employees and subcontractors. Factory Director is the highest level manager in charge of occupational health and safety and reports directly to the Vice President in charge of Oil Work Unit Group.

We apply occupational health and safety practices in compliance with the national legislation, as well as international standards. Certified with OHSAS 18001 Occupational Health and Safety Management System, we manage all work processes accordingly.

This year, Besler provided 2.2 hours of occupational health and safety training, which constituted 25% of the total training hours.

Occupational Health and Safety

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PLANET/RESTORE

NATURAL CAPITAL IS OUR MAIN AND THE MOST IMPORTANT ASSET FOR THE SUSTAINABILITY OF LIFE AND THE FOOD INDUSTRY.

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30 31

Natural capital is our main and the most important asset for the sustainability of life and the food industry. We tackle climate change to have a restorative impact on the environment, follow our energy, water and waste consumptions and emissions and continue our efforts to leave the following generations a better future.

PLANET –RESTORE

Corporations bear large responsibilities towards environment, protecting natural resources and preventing climate change. As a company operating in food processing industry, energy, waste, packaging and water management are among our material sustainability issues in line with our environmental sensitivity and to be able to maintain sustainability of our sector.

As part of Quality Management and R&D Policy, we take into account the environmental impacts of the whole value chain, particularly production processes; use energy and resources effectively and efficiently; and mitigate our environmental impacts.

We detect the areas to be rehabilitated in line with the principles of our Integrated Management System and Food Safety Policy regarding responsible resource consumption and protecting resources and we adopt an approach to raise awareness of our employees, suppliers and customers on the environment and requirements of the energy management and improve our environmental performance.

http://www.besler.com.tr/tr/kurumsal/politikamiz

Energy and environmental management is carried out in compliance with internal policies, besides international standards. Accordingly, Besler is certified with ISO 14001 Environmental Management System and ISO 50001 Energy Management System.

We improve all possible processes and equipment as part of environmental management practices. In line with this approach our environmental investments increase every year.

There has been no environmental penalties or sanctions in the last three years.

We also contribute to the United Nations Sustainable Development Goals (SDG) with the activities carried out as part of environmental management.

Environmental Management

Total Environmental Investments and Expenditures (TL)

2015 2016 2017

-

200.000

400.000

600.000

800.000

1.000.000

1.200.000

1.400.000

%66

705.945

919.096

1.169.755

While improving our production capacity, we attach great importance to decreasing our impact on the environment and increase energy efficiency. To increase the efficiency by decreasing energy losses, Zero Loss Journey with Corporate Energy Movement project has a significant role in achieving this goal. In 2017, we decreased our energy consumption 7% compared to 2015, thanks to the activities carried out as part of Zero Loss Journey project. Accordingly, the ongoing decreasing trend in energy intensity, which is an indicator of energy consumed per unit production, has continued. Energy intensity decreased 11% compared to 2015.

Zero Loss Journey with Corporate Energy Movement:Energy efficiency journey of Besler Gıda which aims zero loss began in April 2015. The Energy Board of the company, which directly reports to the General Manager, continues its operations to decrease energy consumption by 10% with the contribution of various

Energy Management

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Nature which supplies our main raw materials is a significant asset for the food industry. Irregularities in precipitation regime, regional droughts and related threats on the ecosystems, as well as rapid consumption of natural resources make tackling climate change inevitable. We increase our activities to improve our performance in energy, waste and water and manage these areas efficiently as part of tackling climate change.

Tackling Climate Change departments. Besler employees contributed to the analysis and site applications. Energy card system is implemented for detection of losses and leakages. Cooling, steam, electricity, natural gas and compressed air systems, which are main energy consumption units, were analysed and the processes were re-designed under six main projects. These projects included the revision of the compressed air system, revision of the steam lines, re-designing cooling systems, pump efficiency projects, efficient natural gas combustion and heat recovery at hydrogenation. During the implementation period of the projects, an average of 200 energy notification cards were opened and resolved per month. Inefficiencies, leakages and losses detected at 1507 points were prevented. Thanks to all the projects carried out, 10.6% energy efficiency was achieved, which resulted in 2.3 million Turkish Liras financial savings.

In 2017, Besler Gıda was presented the first prize in ISO Energy Efficiency Awards, organized by Istanbul Chamber of Industry (ISO), with its Zero Loss Journey with Corporate Energy Movement Project.

The efforts made in energy efficiency projects set an example for other operational areas. Used for the detection of leakages at all lines, particularly energy transmission lines, Lossmeter application helps following energy consumption of all industrial organizations.

Besler regularly provides training to improve energy efficiency. Moreover, employees are provided training on technical issues and energy management as part of efficiency projects. Hence, energy efficiency is expected to be adopted as a company culture through energy efficiency and ISO 50001 training.

In 2015, Besler Gıda was awarded the first prize with its efforts on water consumption in the category of Water Management in Sustainable Business Awards at the Green Business Summit. We reduced the amount of water used per unit production by half as part of the Investment in the Future: Water project.

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We improved steam, electricity, natural gas, steam boiler combustion efficiency in line with the efforts made to use energy efficiently. As a result, we saved 59,000 GJ energy, which is equivalent to a financial saving of 2.3 million Turkish Liras in total. In the following period, an additional saving of 1.5 million Turkish Liras is expected to be achieved with the optimization of heating, cooling and efficiency-based electricity usage throughout the factory.

In addition to the efficiency efforts, we attach great importance to use renewable energy resources. We benefit from the solar energy to heat the water used at social facilities, which provides service to 300 people per day. The solar energy enables us to save 25,000 kWh energy.

As part of the efficient management of our environmental impacts, it is of great importance to reduce the amount of waste produced, recycle as much as possible or reuse wastes. In 2017, the total amount of waste produced was 10,700 tons. The amount of hazardous wastes, which constitute 2% of the total amount, reduced by 76% compared to 2015. On the other hand, recycled waste used as a by-product increased by 17% compared to 2015.

A total of 197,000 Turkish Liras was saved with a total waste reduction of 706.3 tons by reducing the amount of the treatment sludge and soil usage and improving the processes.

Packages constitute a significant portion in our environmental performance. We aim to minimize the amount of packages used, and therefore the related impacts. As of 2017, 78% of the paper used for packaging purposes is composed of recycled materials. Furthermore, the waste rolled material is reused in the production, which resulted in an annual saving of 13,500 Turkish Liras.

Waste and PackagingManagement

As a company operating in food processing sector preserving the water resources and efficient use of water are among our material issues. Therefore, we monitor the water consumption in our operations and increase the efficiency wherever possible.

As part of the Investment in the Future: Water project, lines were revised to achieve the most efficient water consumption. We achieved a reduction of 195,000 tons of water at the end of the project by using rainwater,

Water Management

recycling cooling tower and process steam water and reducing water production facilities. In addition, we saved 128 MWh energy by using 194 tons less chemicals.

In 2017, we consumed 1 million m3 water. So, we reduced water consumption by 16% compared to 2015. Furthermore, a total of 84,000 m3 rainwater has been stored and reused, which resulted in reduction of water consumption.

We sustain our efforts to reuse water, as well as to reduce the amount of wastewater generated. Accordingly, the amount of reused water increased by 2% compared to 2015. The amount of wastewater generated decreased 17% compared to 2015.

36 37

ENVIRONMENTAL PERFORMANCE INDICATORS

SOCIAL PERFORMANCE INDICATORS

Energy Consumption

Buildings fuel &energy

Electricity

Natural gas

Coal

Steam

Generator (diesel-powered)

Vehicles fuel

Diesel

Petroleum

TOTAL

Renewable Energy

Renewable Energy

Total Energy Consumption

2015

MWh

294.928

57.498

30.352

89.426

117.341

310

442

429

13

295.370

0

0

295.370

2016

MWh

292.702

56.705

32.809

84.973

117.341

874

378

375

3

293.080

24

24

293.104

2017

MWh

298.245

55.933

33.250

88.734

120.088

239

361

269

92

298.606

25

25

298.631

2015

1.765

5407

290

1735

1408

2016

986

5635

427

1909

1458

2017

1.007

6317

318

1779

1307

Amount of waste by type (tons)

Hazardous

Recycled as by-product

Landfill

Recycled

Recovered for energy

2015

6.192

2.949

6.581

14

-

2016

6.416

2.934

5.651

10

-

2017

7.302

3.210

6.218

9,5

0,6

Raw materials and materials used in packaging (tons)

Paper

Plastics

Aluminium + steel can

Plastic weighted composite

Paper - cardboard weighted composite

Women

54

54

0

0

Men

564

200

364

364

Women

50

50

1

1

Men

583

203

379

379

Women

51

50

1

1

Men

606

196

410

410

2015 2016 2017

Number of Employees by Gender and Category

Total number of employees

Number of white collar employees

Number of blue collar employees

Number of employees included in the collective labour agreements

Women

8

0

5

3

Men

80

2

42

36

Women

8

0

5

3

Men

76

3

47

26

Women

8

0

5

3

Men

71

0

34

37

2015 2016 2017

Number of New Recruits by Gender and Age

Number of newly recruited employees

>50 years old

Between 30-50 years old

<30 years old

Greenhouse gas emissions

Scope 1

Vehicles

F-gases

Fuels used at the facility

Steam

Generators (diesel-powered)

SF6

Scope 2

Electricity consumption

TOPLAM

2015

57.933,0

119,6

1.551,5

37.404,9

18.773,8

83,2

0,0

25.099,8

25.099,8

83.032,8

2016

57.221,3

103,8

1.842,8

36.266,4

18.773,8

234,5

0,0

23.412,2

23.412,2

80.633,5

2017

59.106,4

97,3

2.044,3

37.687,3

19.213,4

64,2

0,0

23.556,9

23.556,9

82.663,2

(tons CO22-e)

2015

6.986

1.219.183

0

2016

11.152

946.405

0

2017

27.613

1.002.649

83.640

Water consumption by resource (m3)

Municipal Water

Groundwater

Rainwater

2015

42.685

1.025.834

2016

44.008

771.470

2017

43.509

847.853

Recycled water

Wastewater

38 39

2016

20,96

4,27

2017

12,335

2,16

2015

16,97

4,1

Training

Average number of training hours per employee

OHS training per employee

2016

12

2017

19

2015

1.5

Subcontractor trainings

Average number of training hours per subcontractor employee

Women

8

0

6

2

Men

71

11

39

21

Women

12

1

8

3

Men

65

11

37

17

Women

12

0

7

5

Men

72

10

42

20

2015 2016 2017

Number of Employees Left by Gender and Age

Number of employees left

>50 years old

Between 30-50 years old

<30 years old

Women

24

12

18

Men

224

105

235

Women

24

9

18

Men

242

119

221

Women

25

7

19

Men

260

112

234

2015 2016 2017

Number of employees by term of employment and gender

Number of employees working for 0-5 years

Number of employees working for 5-10 years

Number of employees working for 10 and more years Women

2

14

4

Men

0

41

9

Women

1

13

3

Men

1

37

11

Women

0

13

3

Men

1

33

8

2015 2016 2017

Top management by gender and age

<30 years old

30-50 years old

>50 years old

Women

0

0

Men

31

0

Women

1

0

Men

20

0

Women

2

2

Men

18

0

2015 2016 2017

Number of Employees Returned to Work after

Parental Leave

Number of employees taking maternity leave

Number of employees returning to work after maternity leave

Women

54

Men

538

Women

50

Men

370

Women

51

Men

386

2015 2016 2017

Number of employees subject to performance evaluation by gender

Women

0

Men

6

Women

0

Men

6

Women

0

Men

6

2015 2016 2017

Board members by gender

Board of Directors

Women

1

Men

18

Women

1

Men

17

Women

0

Men

16

2015 2016 2017

Number of disabled employees by gender

Total number of employees

Full-time

359

Part-time

0

Full-time

302

Part-time

0

Full-time

223

Part-time

0

2015 2016 2017

Number of subcontractor employees

Total number of employees

2015

21

302

1,81

0,17

2016

19

290

1,58

0,23

2017

8

145

0,79

0,15

Occupational health and safety data*

Number of accidents

Absence as a result of accidents

Total accident frequency rate (IR)

Lost day rate (LDR)

Besler Gıda employees and subcontractor employees are calculated together.

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