Kordsa Teknik Tekstil : 2021SUSTAINABILITYREPORT

• With our eighth sustainability report that reflects Kordsa's economic, environmental and social performance in 2021, we offer our stakeholders the opportunity to evaluate our impacts resulting from our activities and to evaluate our monitoring, improvement and
  measurement steps''in managing them.

The Scope and Topic

Boundaries

The data in this report covers Kordsa's activities from January 1, 2021 to December 31, 2021. We also provide 2019 and 2020 data in order to monitor the trends. In addition to determining process of the report content, we explain the boundaries of the material topics in the Material Suatainability Topicssection of this report.

The list of topics that we include on our materiality matrix are all relevant for our global operations with no limitations.

This year the scope of our report has not changed. Externally our suppliers and contractors also have impacts regarding these topics. We provide details

on management of impacts under Selecting Supplierstopic of this report. Regarding our economic performance, we provide figures representing the company, not as country specific.

The Principles

This report is prepared in accordance with the GRI Standards:Core option. In the process of identifying our strategic sustainability topics, we took into consideration GRI's principles of materiality, stakeholder inclusiveness, sustainability context and completeness. Our report also covers the 10 principles of UN Global Compactthat we signed in 2014. UNGC Content Indexis located here.

With our targets on material topics, we directly address seven of UN Sustainable Development Goals.Our report also covers the International Finance CorporationIFC's Performance Standards on Environmental and Social Sustainability that were established to pinpoint, assess, and manage social and environmental risks in project finance. Additionally, we analyzed the relevant SASB's (Sustainability Accounting Standards Board)topics and KPI's of the sectors Kordsa serve and explained how we support our customers' sustainability targets.

External Audit and

Verification

Selected 2021 performance indicators are audited by PWC.

Scope 3 calculations are verified by QSI.

Next Report

We aim to publish the ninth of our sustainability reports, which we plan to prepare annually, in the first half of 2023.

About the Report

Messages to Our Stakeholders

Corporate Profile

Strategy and Governance

Sustainability Management

Sustainability Faciliators at Kordsa

Economy and Growth

Environment and Climate

You can reach any part of the report by using the navigation pane on top of each page.

Related video on pages with play button you can watch the content.

All items in the table of contents page are linked to relevant headings. You can simply click on the heading in the contents page to directly go to the relevant topic in the report.

You can move forward and backward through the pages by clicking on the arrows at the right end of each page.

Employees and Community

Performance Indicators

Annexes

KORDSA SUSTAINABILITY REPORT 2021

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MESSAGE FROM OUR CHAIRMAN

• We see sustainability as an integral part of our purpose and strategy. We work with our stakeholders to ensure social ''and environmental sustainability throughout our entire value chain.

About the Report

Messages to Our Stakeholders

Corporate Profile

Strategy and Governance

Dear Distinguished Stakeholders,

Since the first months of 2020, our priorities, habits and ways of doing business have changed rapidly. As a global company

with a strong supply chain around the world, we maintained to produce and serve our customers uninterruptedly at Kordsa, while adapting to new developments. During this critical period where we feel the importance of sustainability more than ever, we continued to create tremendous value for our stakeholders with the vision of "Our passion is to strengthen life", by acting agile in every stage of our business thanks to our adaptability.

Despite the chip shortage in the automotive industry and difficulties experienced in the supply chain due to the COVID-19 pandemic, Kordsa increased its operational profitability by

70% and net profit by 360% compared to the previous year, thanks to exceptional capacity utilization rate and effective cost management in tire reinforcement. As Kordsa, our primary goals are to strengthen our position in construction reinforcement technologies and become one of the world's leading advanced materials companies through the product portfolio growth with investments in composite technologies, while maintaining our global leadership in tire reinforcement technologies.

Kordsa reinforces one out of every three automobile tires and two out of every three aircraft tires in the world. With recent investments in composite materials, Kordsa came to a position to strengthen aircraft fuselages, wings, and engines. Composite, the advanced technology material of the future, thanks to its lighter, durable, and robust features, contributes significantly to sustainable mobility as it reduces carbon emissions with low fuel consumption.

At Kordsa, we increase our share in sustainable mobility by supplying composite materials to non-aviation sectors. Three years ago, while the share of non-aviation products in our composite materials product portfolio was 30 percent, we have expanded this share to 53% by expanding into the automotive and green energy sectors.

We are a signatory to the UN Global Compact since 2014, which includes 10 principles consisting of fundamental responsibilities in human rights, labor, environment, and anti-corruption. In 2015, we shared with you, our esteemed stakeholders, our first performance report on sustainability impacts. In 2016, Kordsa became a part of the BIST Sustainability Index, comprising

of companies with the highest corporate sustainability performances. Since then, Kordsa has received various prestigious reporting and rating awards and taken its place among sustainability leaders in our country and globally.

With awareness of climate change turning into a crisis, Kordsa aims to reach net-zero emissions by 2050, with its commitment to the Science-Based Targets Initiative to help limit global warming to 1.5°C.

Kordsa is one of the most important supporters of Sabancı Holding's vision, "We unite Turkey and the world for a sustainable life with leading enterprises," and has a robust technological infrastructure and deep-rooted innovation culture which is necessary for sustainability. R&D, innovation and digital transformation play a facilitating role in achieving

our sustainability goals. We are carrying out our sustainability efforts by taking into consideration technology and digitalization with our industry 4.0 practices.

We develop innovative, environmentally friendly technologies with a focus on human and the environment in all our business lines through studies of our R&D centers, which are responsible for creating innovations. For sustainable mobility, while we use recycled nylon yarns in tire reinforcement technologies, we also produce reinforcement materials that reduce fuel consumption by making vehicles lighter in composite technologies.

Furthermore, in construction reinforcement technologies, we develop innovative products to strengthen concrete structures in order to increase durability. In this direction, sustainable chemicals, bio-based polymers and polymer recycling technologies took place among most important topics on our innovation agenda in 2021.

We see sustainability as an integral part of our purpose and strategy. We work with our suppliers and customers to ensure social and environmental sustainability throughout our entire value chain, from purchasing raw materials to delivering our products to customers. In 2021, we took important actions about diversity and inclusivity in company management and protection of human rights in our value chains and suppliers.

I would like to thank all our esteemed stakeholders with whom we have collaborated in Kordsa's journey of reinforcing life and our industrious employees who contributed massively to our success despite a challenging year.

Kind Regards,

CEVDET ALEMDAR

Chairman

Sustainability Management

Sustainability Faciliators at Kordsa

Economy and Growth

Environment and Climate

Employees and Community

Performance Indicators

Annexes

KORDSA SUSTAINABILITY REPORT 2021

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