ÇİMSA ÇİMENTO SANAYİ VE TİCARET A.Ş. - Climate Change 2021
C0. Introduction
C0.1
(C0.1) Give a general description and introduction to your organization.
Corporate Profile:
Having commenced its operations in 1972 at the Mersin Plant, Çimsa today operates with five integrated plants in Mersin, Eskişehir, Kayseri, Niğde, and Afyonkarahisar (Afyon Cimento), as well as one grinding facility in Ankara. Since 2013 Çimsa has 51% share of Afyon Cimento and fully integrated into the management system of Çimsa in 2018 including climate change.
In addition to grey cement, Çimsa also produces special products such as white cement and calcium aluminate cement as well as ready-mixed concrete. Exporting white cement and special products to more than 65 countries, mainly to markets in the Middle East, Europe, North Africa, and the United States, Çimsa increases the recognition of its brand on international platforms as well as increasingly contributing to its sector and the Turkish economy.
One of the world's three leading brands of white cement, Çimsa is a truly international cement producer with its terminals in Hamburg (Germany), Trieste (Italy), Seville and Alicante (Spain), Famagusta
(TRNC), Constanza (Romania) and Novorossiysk (Russia).
Çimsa maintains its stable growth process backed by its long-standing experience in global and local markets, its know-how, and its R&D work which shapes the sector and its identity as a reliable partner for its 1,148 employees and stakeholders.
In its 47th year of operation, Çimsa took significant steps forward in building a sustainable future. Çimsa's aim of global leadership came one step closer with the agreement to acquire the Buñol Factory in Spain. Following the testing and enhancement work, Çimsa Americas started selling products in the final quarter of 2019. Meanwhile, the Joint Cultural Management One Team-One Voice project was carried out.
The company is also one of the industrial companies of Sabancı Group. Hacı Ömer Sabancı Holding A.Ş., one of Turkey's leading conglomerates, is the parent company and manages the Sabancı Group's companies with a strategic portfolio approach. Turkey's rapidly growing sectors including banking, insurance, energy, cement, retail, and industrial are the main business areas of Sabancı Group. Sabancı Group companies are market leaders in their respective sectors and currently operate in 13 countries and market their products in regions across Europe, Middle East, Asia, North Africa, North, and South America.
Strategy:
Çimsa defined its strategic foundations as;
- Sustainability
- Being Human Oriented, Global Culture
- Digital Transformation
Based on strategic foundations, Çimsa's Strategy is to serve as guidance for its decision-making processes in the Company's operations carried out in the domestic and international markets. Strategical areas to guide are determined as follows;
- Growth and integration
- Cash management, operational and technical discipline
- Digital and cultural transformation
Priorities defined based on the company strategy and stakeholder consultations are;
- Occupational Health and Safety
- Growing in International Markets
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- Profitability and Dividends
- Equality at Work
- Customer Loyalty
- Risk Management
- Digitalization
- Cultural and Technological Transformation
The company follows the capital management model. Six capitals defined and every project under priorities evaluated upon 6 capitals which are;
- Financial
- Manufactured
- Intellectual
- Human
- Social and relational
- Natural.
Risk assessment is based on those capitals and for each and every risk, the company defines the capital type. Natural capital covers climate&energy, environment&emission, water, waste, biodiversity&ecosystem development, recycle&circular economy. If the financial effect of the natural capital risk is above the company benchmark it is discussed by the Management and Sustainability Committee's to decide on the required action and next steps.
The company also have a sustainability committee that supports the risk assessment in terms of climate change and the Climate Change Strategy of the company is to perform annual greenhouse gas emission calculations in accordance with greenhouse gas inventory studies, to designate goals for future projections, and to develop solution methods to reduce emissions.
In 2020, the total Scope 1 and 2 emissions are verified as follows:
Scope 1 emissions: 5,642,232 tCO2e
Scope 2 emissions: 309,829 tCO2e
The intensity is 872 tCO2e/ton clinker for the base year (2015) and it was aimed to decrease it to 855 tCO2e/ton clinker by 2025. The intensity figure for the reporting year is 855 tCO2e/ton clinker and we have already reached our target. New targets will be set in next year in line with Sabanci Holdings' Net Zero Target.
The list of measures to carry out to achieve this goal is as follows and in line with GCCA of the WBCSD;
- To follow production processes with energy efficiency measurements,
- To improve process efficiency,
- To increase the cement content ratio,
- To use alternative energy resources.
C0.2
(C0.2) State the start and end date of the year for which you are reporting data.
Start date | End date | Indicate if you are providing emissions data for past reporting | Select the number of past reporting years you will be providing emissions data | |
years | for | |||
Reporting | January 1 | December 31 | No | |
year | 2020 | 2020 | ||
C0.3
(C0.3) Select the countries/areas for which you will be supplying data.
Turkey
C0.4
(C0.4) Select the currency used for all financial information disclosed throughout your response.
TRY
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C0.5
(C0.5) Select the option that describes the reporting boundary for which climate-related impacts on your business are being reported. Note that this option should align with your chosen approach for consolidating your GHG inventory.
Operational control
C-CE0.7
(C-CE0.7) Which part of the concrete value chain does your organization operate in?
Limestone quarrying
Clinker production
Portland cement manufacturing
Blended cement
Alternative 'low CO2' cementitious materials production
Concrete production
C1. Governance
C1.1
(C1.1) Is there board-level oversight of climate-related issues within your organization?
Yes
C1.1a
(C1.1a) Identify the position(s) (do not include any names) of the individual(s) on the board with responsibility for climate-related issues.
Position of | Please explain |
individual(s) | |
Chief | The responsibility of the CEO about climate-related issues come from integrated risk management. High and very high level of risks with their alternative solutions and budgets shared with the CEO. |
Executive | The CEO is informed by the Corporate Risk Department. CEO is the highest level of responsibility to approve the action plan and the budget with the guidance of the Management Committee and |
Officer | Sustainability Committee. Climate-related risks in the long term horizon may need a high budget of investments that has a long technical lifetime. For Cimsa all WHR investments done to decrease |
(CEO) | the energy consumption and emissions of the company are approved by the CEO who leads the sustainability committee. CEO as a sustainability committee chair represents the company in NGOs |
and international platforms which focused on sustainability and climate change. Achievement of SDG targets defined in Cimsa is also reporting to the CEO. The CEO is also responsible for informing | |
the Sabancı Holding we are affiliated with about the critical developments that may include climate change. | |
Other C- | Chief Technical Officer (CTO) has responsibilities about climate-related issues. CTO is also a member of the management committee and the sustainability committee. The alternative fuel and |
Suite Officer | alternative raw materials use, energy efficiency, technological investment alternatives for low carbon transition in the company are under CTO's responsibility. In 2020, R&D projects for less carbon |
consumption, energy efficiency projects, and alternative fuel studies were approved by the CTO. He also follows the progress in emission reduction targets. For the management of technological | |
risks CTO also has the responsibility to review the alternative investments reported by Plant Managers to solve the technological risk. | |
C1.1b
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(C1.1b) Provide further details on the board's oversight of climate-related issues.
Frequency | Governance | Scope of | Please explain |
with | mechanisms | board- | |
which | into which | level | |
climate- | climate- | oversight | |
related | related issues | ||
issues are | are integrated | ||
a | |||
scheduled | |||
agenda | |||
item | |||
Scheduled | Reviewing and | <> | Climate Change policy & strategies, performance & targets are particularly managed by Sustainability Committee and it is led by the CEO. In quarterly meetings, supporting |
- some | guiding | Applicabl | projects as per climate change with inline its strategical areas to guide on growth & integration are reviewed. Management Committee is also responsible for climate-related |
meetings | strategy | e> | issues because the company applies integrated risk assessment and they issue the risk procedures and monitor the risks. If a very high and high risk is defined as related to |
Reviewing and | climate change then it's the management committee's responsibility with Sustainability Committee to approve the risk management alternative with its budget. The | ||
guiding major | management committee meets every month. The highest climate change risks come from possible regulative changes and customer behaviour change. Those risks are | ||
plans of action | shared by the Corporate Risk Department to Sustainability Committee and Management Committee. The approved action to mitigate the effect of the risk was the | ||
Reviewing and | acceleration of R&D in terms of new low carbon product development and technology. The budget for R&D in 2020 was 6.7 million TL. The objectives of the company | ||
guiding risk | related to climate change come from the energy efficiencies planned in the company for the further years. All technical data verified by the third party and managing the | ||
management | climate change in the daily operation is one of the company priorities. | ||
policies | |||
Reviewing and | |||
guiding annual | |||
budgets | |||
Reviewing and | |||
guiding | |||
business plans | |||
Setting | |||
performance | |||
objectives | |||
Monitoring | |||
implementation | |||
and | |||
performance of | |||
objectives | |||
Overseeing | |||
major capital | |||
expenditures, | |||
acquisitions | |||
and | |||
divestitures | |||
Monitoring and | |||
overseeing | |||
progress | |||
against goals | |||
and targets for | |||
addressing | |||
climate-related | |||
issues | |||
C1.2
(C1.2) Provide the highest management-level position(s) or committee(s) with responsibility for climate-related issues.
Name of the | Reporting | Responsibility | Coverage of | Frequency |
position(s) | line | responsibility | of | |
and/or | reporting | |||
committee(s) | to the | |||
board on | ||||
climate- | ||||
related | ||||
issues | ||||
Chief | <> | Managing climate-related risks and opportunities | <> | Quarterly |
Executive | Applicable | Applicable> | ||
Officer (CEO) | > | |||
Other C-Suite | <> | Both assessing and managing climate-related risks and opportunities | <> | Quarterly |
Officer, | Applicable | In terms of management of direct operation risks based on technology on manufacturing plants. As described in details in Section 2, beside general risk | Applicable> | |
please specify | > | management procedures, if the risk is identified on plant and technological investment needed than before sharing the risk with the Corporate Risk | ||
(Chief | Department, Plant Manager and CTO review the low-carbon technological alternatives. At this point CTO also have the responsibility to assess the risk. | |||
Technical | Since investments in cement sector have long technological life time, the company have decision to invest in low-carbon technologies because all the | |||
Officer) | business is in transition period to low-carbon future in line with SDG 13. | |||
Sustainability | <> | Both assessing and managing climate-related risks and opportunities | <> | Quarterly |
committee | Applicable | With the support of Sustainability Committee Working Groups, the committee also is a part of assessing the climate related risks and opportunities. | Applicable> | |
> | ||||
Other | <> | Managing climate-related risks and opportunities | <> | More |
committee, | Applicable | Applicable> | frequently | |
please specify | > | than | ||
(Management | quarterly | |||
Committee) | ||||
C1.2a
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(C1.2a) Describe where in the organizational structure this/these position(s) and/or committees lie, what their associated responsibilities are, and how climate- related issues are monitored (do not include the names of individuals).
Climate-related issues are managed through the Sustainability Committee and Management Committee in Cimsa and CEO is the highest level of responsibility. Sustainability & Management Committees are managed by the highest level of managers of the company.
Sustainability Committee(SC) led by CEO and consist of the members of ;
Vice General Managers,
Operational Excellence Group Manager,
Waste Management Manager,
Corporate Risk Manager,
Strategic Planning and Project Management Office Coordinator,
Corporate Communications Manager,
Financial Planning and Analysis Manager
and Environment and Sustainability Executive as a committee secretary.
Sustainability Committee has a subgroup which is "Sustainability Working Group". The "Sustainability Working Group is to follow expected regulations, developments in low carbon products, and potential high impacts of global reports like IPCC and Global Cement Industry and international conferences and reports to the Sustainability Committee. Sustainability Committee reviews the reports of the Sustainability Working Group in terms of possible high financial impacts on business. The members of the Sustainability Committee have responsibilities in relations with policymakers and the NGO's who work about climate change for the cement industry. Those responsibilities create the vision and give a clear picture of the changes that might occur because of climate change. As one of the highest level committees in the company, the Sustainability Committee, with these responsibilities, review the action plans proposed to manage the risks including climate-related risks with the vision of a high level of sustainability knowledge.
The second committee which is responsible for climate-related issues is the Management Committee(MC). Management Committee with Sustainability Committee has the responsibility to approve the budgets of the action plans proposed to manage the high and very high risks.
Those committees give the final decision about climate-related risks and opportunities to the CEO. They approve the budget for the mitigation of climate-related risks and invest in climate-related opportunities.
C1.3
(C1.3) Do you provide incentives for the management of climate-related issues, including the attainment of targets?
Provide incentives for the management of | Comment | |
climate-related issues | ||
Row | Yes | Incentives applied by Cimsa to achieve the targets including climate-related performance indicators to accelerate the transition to a low carbon economy |
1 | and strength responsible production practices. | |
C1.3a
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Cimsa Cimento Sanayi ve Ticaret AS published this content on 23 June 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 23 June 2022 13:45:07 UTC.