Sustainability Report

REPORT

2023

Contents

3 Introduction

1. About the Report
2. Chairperson's Message

1. CEO's Message

8 Corporate Profile

1. About Şişecam

1. Highlights of 2023

18 Strategy & Governance

1. Şişecam CareforNext 2030
   Sustainability Strategy
2. Sustainability Governance

1. Our Sustainability Journey

1. Sustainability-RelatedResponsibilities and Statements
2. Materiality Analysis
3. Şişecam CareforNext 2030
   Sustainability Targets and
   2023 Performance
4. Stakeholder Engagement
5. Business Ethics, Compliance and Regulatory Work

29 Protect The Planet

31 Combating and Adaptation to Climate Change

1. Water Use
2. Circular Production

43 Empower Society

44 Equality, Diversity and Inclusion

49 Talent Acquisition, Management and Development

56 Employee Experience and

Engagement

1. Occupational Health and Safety

1. Corporate Heritage

67 Contribution to Social Development

74 Transform Life

75 Sustainability Across the Value Chain

1. Digitalized Value Chain

1. Sustainable Products

1. Value-AddedPartnerships

87 Annexes

88 Memberships of Organizations

92 System, Product and Facility Certifications

95 Performance Tables

1. Independent Assurance Report
2. GRI Content Index

116 Contact

As Türkiye Şişe ve Cam Fabrikaları A.Ş. (Şişecam), with our 11th sustainability report, we present our approach to managing the value and impact we create through our operations, our sustainability priorities, our contribution to the United Nations (UN) Sustainable Development Goals, and our performance against our targets to our stakeholders.

This report has been prepared in accordance with GRI Standards. The scope of the report covers our activities in architectural glass, industrial glass, glass packaging,

glassware, chemicals, energy, and other* business lines between January 1, 2023 and December 31, 2023. All data provided covers all legal entities of Türkiye Şişe ve Cam Fabrikaları A.Ş. in Türkiye and the countries where it operates.

Our report received limited assurance on 10 environmental and social parameters. These parameters are included

in the Independent Assurance Report section and our performance against the parameters is indicated with Performance Tables section.

In addition to our disclosures aligned with the requirements of the Task Force on Climate-related Financial Disclosures (TCFD), our report also includes our performance related to the indicators under the United Nations Global Compact (UNGC) and Women's Empowerment Principles (WEPs), two significant initiatives to which we are signatories.

You can submit any comments and suggestions regarding our sustainability activities and reporting to us at carefornext@sisecam.com.

20 21 22

Please click here to access our sustainability reports published in previous periods.

Chairperson's Message

Adnan Bali

Chairperson

In 2023, we became a signatory of the United Nations' Women's

Empowerment Principles (WEPs) Platform, which supports women's participation in economic life in all sectors and at all levels.

Dear Stakeholders,

Our world is changing at an unprecedented pace. Technological advances, urbanization and population growth are increasing the pressure on natural resources, while the impacts of climate change are becoming more evident. The current period encompasses global trends that positively contribute to our industry, such as new market opportunities, customer expectations shaped by demographic shifts, and new business models, alongside numerous political and economic uncertainties. This situation necessitates a holistic risk-opportunity management to maintain the delicate balance of ecosystems. If we maintain the current trajectory, we must confront the reality that we won't be able to leave a livable and clean world for future generations.

Glass, one of the most widely used materials throughout human history, is one of the strategic materials that can benefit our planet, which is sending out distress signaling. As of 2023, the global glass industry's market size has reached approximately $246 billion, and it is expected to grow to $319 billion in 2028. The glass industry is a powerful force in

the global economy, offering significant employment opportunities and boasting substantial production and export potential.

With the brightness that comes from "glass," and guided by wisdom and science, Şişecam has set clear goals for a better future under its "CareforNext 2030" strategy, which is aligned and integrated with the United Nations Sustainable Development Goals. We have transparently defined the necessary investments in full compliance with environmental and social requirements.

To support our sustainability strategy with management practices and to comprehensively evaluate our performance, we have taken significant steps to effectively implement our governance structure.

The Board of Directors Sustainability Committee, consisting of members of the Board of Directors, and the Sustainability Executive Committee, consisting of members of the Executive Committee play an important role in implementing and adopting our sustainability strategy across all levels.

As geopolitical developments, high interest rates, and ongoing supply chain constraints narrow the business outlook, we are in a period that requires swift and challenging decision-making. However, climate change stands out as a more critical issue than all these concerns. It presents existential risks that surpass short-term economic fluctuations, necessitating a steadfast commitment to reducing greenhouse gas emissions and transitioning to sustainable practices.

As a global company operating in all core areas of glass production, we believe that glass collection and recycling is one of the most significant opportunities in the industry's fight against climate change. Through our advanced technology applications and R&D efforts, we transform glass from being just a business area into a material that serves humanity and development.

We are working towards a sustainable, circular, and energy efficient transformed glass industry.

As an organization focused on people, we signed the Women's Empowerment Principles (WEPs) of the United Nations in 2023, supporting the inclusion of women in economic life across all sectors and at all

levels. Additionally, we have joined the "WEPs in Action" pilot program, designed to contribute to the WEPs Center of Excellence that UN Women will establish in Türkiye in the near future.

We believe that a sustainable future can only be ensured by spreading the values we hold. Given that a significant portion of our impact occurs within our value chain, it

is increasingly important to extend our sustainability

mindset and practices along this chain. Therefore, we are taking significant steps to promote our sustainability values, particularly within our supply chain.

In 2023, we shared the pride of coming one step closer to our strong sustainability goals with all our stakeholders. In the coming periods, we will continue to work towards a sustainable future, conscious of our responsibility to our industries, our planet, and society.

We extend our gratitude to all Şişecam employees, suppliers, customers, business partners, and investors who have been with us on this journey.

Adnan Bali

Chairperson

CEO's Message

Görkem Elverici

CEO

In 2023, we allocated 63.5% of our R&D expenditures to sustainability projects.

Dear Stakeholders,

Recent global developments and rapid changes have underscored the vital importance of sustainability. Environmental and social challenges demand urgent and decisive action for sustainable development. To leave

a livable world for future generations, we must embed sustainability at the core of our business and devise swift and effective solutions.

As a global player in the glass and chemicals industries, we aim for all our investments and projects to be sustainable, providing benefits across the entire value chain in partnership with Şişecam, and addressing the needs and expectations of our planet and society from raw materials to final products.

The year 2023 was challenging for the global economy. Slowing global growth, high inflation, supply chain disruptions, and interest rate hikes created a tough business environment. Despite these challenges,

we accelerated our transformation momentum and made strategic investments. Our consolidated net sales reached TRY 152 billion, with international sales comprising exports from Türkiye and sales from production outside Türkiye accounting for 60% of our consolidated sales. Our total investments and exports amounted to TRY 21 billion and TRY 31.7 billion, respectively. In 2023, we produced 5.2 million tons of glass, 4.7 million tons of soda ash, and 3.7 million tons of industrial raw materials.

Our effective cost management, efficient resource utilization and well structured strategies were crucial in achieving these significant results.

In 2023, we undertook strategic investments to ensure the sustainability of our operations and the value

we create. We began the year by commissioning our first float line for automotive glass in Lüleburgaz. We upgraded the technologies and increased the efficiency and capacities of our furnaces in Georgia, Egypt, and India through in cold repair investments. Another key development was our investment in a port operation

in California, USA, which will reduce our environmental footprint and establish Şişecam as one of the world's largest soda ash producers. This investment will help us secure sustainable growth by creating a supply chain structure that supports our natural soda ash export targets in the USA. We are also continuing our investment in value-added products that unlock the potential of glass. With new line investments in Mersin, adhering to Industry 4.0 principles, we aim to increase our capacities for frosted glass and solar energy glass processing.

Our investment in three coated glass lines, announced recently, will boost the ratio of value-added products in our portfolio and meet the growing demand for green energy transformation.

Sustainability is at the heart of all our operations and is a cornerstone of Şişecam's business model. Guided by our 2030 CareforNext Sustainability Strategy, we are committed to creating sustainable added value for Şişecam and its stakeholders, achieving tangible results toward this goal.

One of these steps is our new business model, the "Plant of the Future." By implementing this model, we aim to reduce our energy consumption through the use

of cutting-edge technologies and alternative energy sources, develop environmentally friendly production models, and reduce carbon emissions generated during glass production with our renewable energy projects. We believe that our Plant of the Future initiative will usher in a new era in glass production for the entire industry, enabling us to transform the industry leveraging our knowledge accumulated since 1935, together with our stakeholders. With this initiative, we will work to optimize costs with the latest technology and to continuously improve all production processes, starting from the vision and design stages.

Aligned with our goal to achieve carbon neutrality and our target to increase renewable energy usage in our production eightfold by 2030, we are making significant investments. We aim to achieve an installed renewable energy capacity of 53 MWp dedicated to the self consumption of our production facilities. In addition to our current 10 MWp solar energy investments, we have applied for an additional 39 MW in solar and wind energy projects.

In 2023, we continued our efforts to create a low carbon roadmap to combat climate change. Additionally, based on the Task Force on Climate related Financial Disclosures (TCFD) framework, we identified the risks and opportunities Şişecam might face under different climate change scenarios.

In addition to all these efforts, we actively participate in international organizations, closely monitor the agenda, and identify areas for development. In 2023, we joined the European Solar Photovoltaic Industry Alliance, which aims to promote the use of solar energy and photovoltaic (PV) technology. We are proud to announce that the Hydrogen Valley Project, in which we are a key partner focusing on green hydrogen, an element of strategic

importance for energy transformation, was recognized and supported by the European Union's Horizon Europe Program in 2023. This project earned the highest single grant ever awarded by the European Union (EU) Framework Programs in Türkiye's history, an achievement we are justifiably proud of.

In 2023, we also made progress in our glass recycling efforts. To support the industrialization of the glass waste collection and recycling sector in Türkiye, we acquired the European Bank for Reconstruction and Development's (EBRD) 10% stake in Şişecam Çevre Sistemleri A.Ş., making us the sole shareholder of the company.

Our greatest asset in achieving our sustainability goals is our employees. Creating a work environment where our employees can develop their talents and gain valuable experiences will ensure their success on the international stage. This way, our employees can experience the international working environment and translate these experiences into sustainable success.

We are particularly proud when our efforts are recognized and rewarded by international authorities. The award received by Şişecam Academy at the BEST Awards organized by the Association for Talent Development (ATD) confirms the validity of our steps in this area.

In line with the principle of "Healthy Individual, Safe Workplace," we effectively manage our Occupational Health and Safety (OHS) practices by identifying our strengths and areas for improvement. We proactively identify related risks and implement measures to eliminate them, taking firm steps toward our "zero accident" goal. To spread this culture, we provided 136,720 hours of OHS training to our employees in 2023.

At Şişecam, we embrace the principle of "competing with data" and are driven by the motivation to "create a digital transformation ecosystem." Since launching our Digital Transformation Program in 2014, we have been diligently pursuing our activities under this initiative. In 2023, to simplify, improve, and make our business processes more agile, we began tracking all projects conducted by our R&D function through the Digital Project Execution Platform. As part of our operational excellence efforts, we implemented a total of 160 Operational Excellence projects and involved 3,200 employees in these initiatives. By the end of 2023, the completed projects resulted in total savings of $60.5 million. Additionally, we allocated approximately TRY 275 million to our R&D projects in 2023, with 63.5% of this expenditure dedicated to sustainability projects.

The year 2023 was significant for our sustainability journey, as we made substantial strides. While fulfilling our environmental responsibilities for the planet, we continued to enhance our social contributions to empower communities and promote sustainable growth at every link in our value chain. I extend my heartfelt gratitude to all our employees, customers, suppliers, business partners, and investors who supported this process.

In the coming years, we will continue to advance our sustainability-focused projects and collaborate towards a greener, more livable world. By leveraging collective wisdom and effort, we will all take steps toward a more sustainable future.

Görkem Elverici

CEO

Şişecam, whose foundations were laid in 1935 to build the Turkish glass industry in keeping with the vision of Mustafa Kemal Atatürk, the founder of the Republic of Türkiye, is a strong global player in glass and chemicals. As the only global company operating in all core areas of glass, including glassware, glass packaging, and glass fiber, Şişecam is one of the two top global producers of glassware and ranks among the top five global producers of glass packaging and flat glass. Şişecam is one of the world's top three soda ash producers and the world leader in chromium chemicals.

Partnership Structure (%)

Playing a leading role in flat glass, glassware, glass packaging, chemicals, automotive, glass fiber, mining, energy, and recycling business lines, Şişecam carries out its production activities in Germany, Italy, Bulgaria, Romania, Slovakia, Hungary, Bosnia and Herzegovina, the Russian Federation, Georgia, Ukraine, Egypt, India, and the USA, in addition to Türkiye.

Taking strong steps towards its goal of becoming one of the world's top 3 manufacturers in its core areas of operation with its skilled workforce and smart technologies, Şişecam continues to transform its digital infrastructure and culture with a focus on future needs. With 88 years of experience, approximately 25,000 employees, production operations spread over 14 countries on four continents and a sales network including more than 150 countries, Şişecam has been listed on the stock exchange since 1986.

Vision, Mission, and Values

Our Vision

While striving to be among the top leading companies in all our fields of operations, we aim to be a global company, teaming up with business partners for innovative solutions to differentiate ourselves with our high-end technologies and global brands with utmost respect to people and environment.

Our Values

We derive strength from our traditions and support each other.

We display a fair and transparent management approach.

We thrive and develop together. We care for our environment. We respect differences.

Şişecam, through its CareforNext strategy, which is aligned and integrated with the United Nations Sustainable Development Goals, takes responsibility for Protecting the Planet, Empowering Society, and Transforming Life. It also utilizes all its experience and expertise to promote sustainable development in every area.

Our Mission

Şişecam is a company that adds value to life through its high-quality products offering comfort and that respects people, the environment, and the law.

About Şişecam Highlights of 2023

Business Segments

CHEMICALS

2-1

ENERGY

Flat glass, patterned glass, mirror, laminated glass, coated glass, solar glass, and home appliance glasses production

Production Facilities:

Kırklareli Plant Branch- Türkiye

Mersin Plant Branch- Türkiye

Bursa Plant Branch- Türkiye

Ankara Plant Branch- Türkiye

Trakya Glass Bulgaria EAD - Bulgaria Sisecam Flat Glass Italy S.R.L.- Italy

Sisecam Flat Glass South Italy

S.R.L. - Italy

Trakya Glass Rus AO - Russia

Sisecam Flat Glass India Pvt.

Limited - India

Saint Gobain Glass Egypt S.A.E -

Egypt

Installed Gross Capacity:

4.3 million tons/year of flat glass and patterned glass

Industry Scope:

Construction, furniture, automotive, solar energy, and home appliances

Automotive Glass Production (Windshield, laminated and tempered sidelight glasses, roof glasses and rear light glasses, encapsulation systems, acoustic glasses, antenna integrated systems, coating heated glasses, Head-Up Display featured glasses, lightweight glasses, modular systems, coating and wire heated glasses)

Glass Fiber Production (Mat, multi-end roving, single end roving, and chopped strand)

Production Facilities:

Şişecam Otomotiv A.Ş. Lüleburgaz Auto Glass Plant- Türkiye

Sisecam Automotive Bulgaria EAD- Bulgaria

Sisecam Automotive Germany GmbH- Germany

Sisecam Automotive Hungary Kft -

Hungary

Sisecam Automotive Slovakia S.R.O.- Slovakia

Sisecam Automotive Rus JSC- Russia

Sisecam Automotive Romania SA- Romania

Şişecam Elyaf Sanayii A.Ş. Balıkesir Plant- Türkiye

Industry Scope:

Automotive main industry and automotive replacement glass (ARG) market, wind turbine blades, marine, thermoset and thermoplastic applications, furniture, glass reinforced plastic pipe, industrial applications, construction, insulation, infrastructure, and composite industry

Soda, crystalline (lead-free crystal) and automatic and hand-made glassware from heat resistant borosilicate glass production and retail merchandising (46 stores in Türkiye, 2 franchise stores globally, and 1 online store)

Production Facilities:

Kırklareli Plant Branch- Türkiye

Eskişehir Plant Branch-Türkiye

Denizli Plant Branch- Türkiye

Pasabahce Bulgaria EAD- Bulgaria

OOO Posuda Limited- Russia

Pasabahce Egypt Glass

Manufacturing S.A.E- Egypt

Installed Gross Capacity:

536 thousand tons/year

Industry Scope:

Retail, HoReCa (Hotels, Restaurants

• Cafes), B2B (Industry, Promotion, Decoration)

Production of glass packaging in various volumes and colors for the food, beverage, pharmaceutical, and cosmetics sectors

Production Facilities:

Mersin Plant Branch- Türkiye

Yenişehir Plant Branch- Türkiye Eskişehir Plant Branch- Türkiye

1. Ruscam Glass Packaging
   Holding (Ufa, Kirishi, Pokrovsky, Kuban, Gorokhovets Plants)- Russia

JSC Mina- Georgia

Merefa Glass Company Ltd.- Ukraine

Sisecam Glass Packaging Hungary

Kft- Hungary

Installed Gross Capacity:

3.06 million tons/year

Industry Scope:

Food, beverage, pharmaceuticals, and cosmetics

Production of soda derivatives and chromium chemicals

Production Facilities:

Mersin Soda Plant Branch- Türkiye

Mersin Kromsan Plant Branch-

Türkiye

Solvay Sodi AD- Bulgaria

Sisecam Soda Lukavac-

Bosnia & Herzegovina

Sisecam Chemicals Wyoming LLC-

USA

Cromital S.p.A.- Italy

Installed Gross Capacity:

5 million tons/year soda ash and

129 thousand tons Basic Chromium Sulphate (BCS)

Industry Scope:

Glass, detergent, textile, leather industry, chemicals, metal coating, wood preservation, pigments

Electricity generation, electricity and natural gas trade

Production Facilities:

Mersin Cogeneration Plant- Türkiye

Trakya Power Plant- Türkiye

Mersin Solar Power Plant- Türkiye

Installed Gross Capacity:

291 MW