Arçelik Anonim Sirketi : 2022 Sustainability Report

This year, we are pleased to share our 15th Sustainability Report. At Arçelik, our company strategy is based on sustainable growth and value creation. We carry out our operations as part of our business model that is integrated with this strategy and short, medium and long-term goals. In this Report, we explain how we have achieved and will achieve the goals we have set with a business approach that is focused on sustainability and the values we create for our stakeholders. At Arçelik, we are aware of our responsibilities towards the planet, people and the business world. We demonstrate our commitment to these 3 pillars and share our progress in our sustainability journey each year with our stakeholders through our sustainability reports.

January 1, 2022, and December 31, 2022; and, in this context, social and environmental indicators stated in the report correspond to more than 75% of our revenue, business operations or full- time equivalent (FTEs) employees.

As a member of the World Business Council for Sustainable Development (WBCSD), Arçelik's Sustainability Reports have been evaluated and scored by Reporting Matters since 2020. Improvements were made in this year's report in line with the feedback received for the 2021 Report. As a Koç Group company, Arçelik reflects Stakeholder Capitalism Metrics (SCM) in its reporting to investors and other stakeholders, as Koç Holding is a signatory to the Stakeholder Capitalism

ALIGNING OUR DISCLOSURES WITH REPORTING

STANDARDS AND FRAMEWORKS

This report demonstrates Arçelik's alignment with the goals and principles of the following international frameworks:

This report has been prepared in accordance with;

Our 2022 Sustainability Report includes our sustainability strategy, targets, and progress in environmental, social and governance (ESG) areas and

as well as our highlighted financial performance. Unless otherwise stated, the information and data included in our report were prepared within the scope of our operations carried out between

Metrics (SCM).

The assurance statements we have received as a result of the audits carried out in accordance with recognized international standards on the selected indicators are included in the Annex 2 section of our Report.

The International Integrated Reporting Framework (IIRC)

The standards set by the Sustainability Accounting Standards Board (SASB)

The report is written in accordance with the GRI Standards.

As a signatory of TCFD (Task Force on Climate-Related Financial Disclosures), comprehensive risk and opportunity analysis for climate-related financial disclosures also take place in this report

ABOUT THIS REPORT

About the Concept of this Report

In 2019, we started to tell our sustainability story visually, rather than simply documenting numbers, declaring: 'This is Not a Report'. Inspired by the UN's 'Decade for Action' agenda, in 2020 we called on our stakeholders to take action on environmental, social and governance challenges: 'Act Together Now'. Last year, we highlighted examples of how when each of us take action, we can create a positive impact on the world, with the rallying cry: 'Lead the Change, Shape the Future'.

This year, to mark the 15th year of our sustainability journey, we continued telling that story under the banner: 'Inspire Sustainable Lives in Every Home'. The sustainable solutions that make our homes work, affect the future of our planet, which is itself home to all living things, ourselves included. As a brand committed to improving everyday lives and upholding our commitments to sustainability, we put your home at the heart of our mission, as 'home' has a special meaning to all of us.

In line with our vision and goals, we prepare our reports with three themes that we have determined will create value worldwide by integrating our strategic priorities and material issues. First, we stay In Touch with Our Planet to reduce our footprint and help conserve vital resources. Second, we stay In Touch with Human Needs to improve people's lives and support society in their needs. Third,

we stay In Touch with Business to be a progressive global citizen and make sustainability a part of the way our employees do business.

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Over the past few years, the world has faced several headwinds that have unsettled the global order. The war in Ukraine dramatically escalated, and its ramifications on social and economic orders dominated the global agenda. Consequently, inflation reached record-high levels, and many countries were confronted with a severe cost of living crisis. The subsequent global uncertainty and socio-economic instability posed several challenges to businesses, including supply chain disruption and soaring energy prices. Unfortunately, mounting pressures have led sustainability to take a back seat. However, with relentless extreme weather events effecting communities all over the globe, decarbonizing our economy is of more vital importance than ever.

WE REMAIN STEADFAST IN OUR COMMITMENT TO SUSTAINABILITY

Arçelik has long been an advocate for sustainable development, setting an example in its industry. I am proud to share that our commitment to sustainability has never wavered, even

during these turbulent times. On the contrary, we continued to work towards our net-zero target with even greater determination.

Decarbonizing our industry requires us to be more innovative across our operations, and we make a great effort to ensure that our manufacturing phases are sustainable. Our manufacturing plant in Ulmi, Romania, for instance, has been awarded Sustainability Lighthouse status by the World Economic Forum in 2022 for its commendable adoption of the latest technologies and implementation of sustainability initiatives. This plant serves as a prime example of our dedication to a net-zero future with numerous environmentally friendly measures, including using 100% green electricity, ensuring resource efficiency and advanced wastewater treatment. We strive to replicate our on-site sustainability measures across our plants.

To secure a net-zero future, businesses must adopt a holistic approach. In addition to our efforts to manufacture

more sustainably, we are seeking ways to provide our consumers with technologies that promote resource efficiency. To this end, we place tremendous significance on sustainable product innovation. Our latest SaveWater technology, for instance, is designed to reduce water consumption by reserving and reusing water in different cycles throughout the product range.

Our sustainability initiatives continue to be recognized and praised by several authorities. Arçelik has once again been listed as the highest-scoring household durables company on the Dow Jones Sustainability Indices, achieving a score of 87 out of 100

(as of December 2022). Additionally, our company has been recognized on The Global 100 Most Sustainable Corporations Ranking of Corporate Knights, for the third time in a row. Our Arçelik and Beko brands also have prominent listings in the Real Leaders Top 300 Impact Companies of 2023 as well, ranking 16th and 17th, respectively.