cdp 2013 investor cdp 2013 information request … 2013 investor cdp 2013 information request ......
TRANSCRIPT
Carbon Disclosure Project CDP 2013 Investor CDP 2013 Information Request
VESTEL ELEKTRONİK SANAYİ VE TİCARET A.Ş.
Module: Introduction
Page: Introduction
0.1
Introduction Please give a general description and introduction to your organization Operating in the fields of consumer electronics, white goods and information technologies with its more than 12,000 employes, Vestel Group of Companies (Vestel), which is the flagship of Zorlu Group, comprises of 26 companies, 13 of which are abroad. Vestel is one the largest consumer electronics and white goods producers in Turkey and Europe. The Company‟s manufacturing facilities are located in Manisa, Turkey and Alexandrov, Russia. The Company enjoys economies of scale which results in productivity, efficiency, and cost advantages by undertaking the majority of its manufacturing within a single 600 thousand square meter area, namely Vestel City, the largest industrial complex in Europe. Vestel Elektronik was established in 1983 and is mainly engaged in production of televisions, set-top-boxes, display panels, touch screens, tablets. The Company is among the leading ODMs ( Original Design Manufacturers ) in World Wide LCD TV market, as ranked #4 in Q1 2013 (#8 in 2011, #4 in 2012), while enjoys being one of the three major players in the domestic LCD TV market with its well-known Vestel brand. The strategic importance given to R&D has a key role in Vestel‟s ability to reach the fast rate of growth and strong competitive position the Company enjoys today. Vestel has improved its superior production technology and design development capability continuously though its team of 800 engineering professionals employed in its R&D centers. The Company is attracting increasing attention with its modern consumer friendly and innovative products. Vestel designs its products and manufacturing processes to maximize productivity, while making a special effort to protect the nature and raise environmental awareness. Vestel places its “friendly technology” concept at the center of its brand culture, strengthening its innovative power with consumer and environmentally friendly products. Underlying Vestel‟s unique, pioneering designs and innovative products is the Company‟s mission to leave a habitable world for future generations while envisioning the technology of the future. Vestel continually strives to minimize all negative impacts on the environment with its new products and targets to increase its R&D investments toward the direction of sustainable innovation.
0.2
Reporting Year Please state the start and end date of the year for which you are reporting data. The current reporting year is the latest/most recent 12-month period for which data is reported. Enter the dates of this year first.
We request data for more than one reporting period for some emission accounting questions. Please provide data for the three years prior to the current reporting year if you have not provided this information before, or if this is the first time you have answered a CDP information request. (This does not apply if you have been offered and selected the option of answering the shorter questionnaire). If you are going to provide additional years of data, please give the dates of those reporting periods here. Work backwards from the most recent reporting year. Please enter dates in following format: day(DD)/month(MM)/year(YYYY) (i.e. 31/01/2001).
Enter Periods that will be disclosed
Sun 01 Jan 2012 - Mon 31 Dec 2012
0.3
Country list configuration Please select the countries for which you will be supplying data. This selection will be carried forward to assist you in completing your response
Select country
Turkey
0.4
Currency selection Please select the currency in which you would like to submit your response. All financial information contained in the response should be in this currency. TRY
0.6
Modules
As part of the request for information on behalf of investors, electric utilities, companies with electric utility activities or assets, companies in the automobile or auto component manufacture sectors, companies in the oil and gas industry and companies in the information technology and telecommunications sectors should complete supplementary questions in addition to the main questionnaire. If you are in these sectors (according to the Global Industry Classification Standard (GICS)), the corresponding sector modules will not appear below but will automatically appear in the navigation bar when you save this page. If you want to query your classification, please email [email protected]. If you have not been presented with a sector module that you consider would be appropriate for your company to answer, please select the module below. If you wish to view the questions first, please see https://www.cdproject.net/en-US/Programmes/Pages/More-questionnaires.aspx.
Further Information
VESTEL Electronics is the TV manufacturing plant of VESTEL Group of Companies. Employing more than 5000 people, VESTEL‟s production facilities are located in MANISA in Turkey. With 256.000 m2 of enclosed space, it has a total annual production capacity of 15 million units. VESTEL Electronics has 5
Chassis Producti Final Assembly Manufacturing at the highest quality standards requires discipline as well as knowledge and experience. Total Productive Maintenance approach implemented throughout the manufacturing process improves efficiency and productivity in all areas, making VESTEL a World Class Manufacturer.
Attachments
https://www.cdproject.net/sites/2013/59/21159/Investor CDP 2013/Shared Documents/Attachments/InvestorCDP2013/Introduction/Company Introduction.pdf
Module: Management [Investor]
Page: 1. Governance
1.1
Where is the highest level of direct responsibility for climate change within your company? Individual/Sub-set of the Board or other committee appointed by the Board
1.1a
Please identify the position of the individual or name of the committee with this responsibility
The highest level of direct responsibility for climate change rests with Mr. İhsaner Alkım, who is a member of the Executive Board responsible for top level management of all environmental, energy, and social responsibility issues.
1.2
Do you provide incentives for the management of climate change issues, including the attainment of targets? Yes
1.2a
Please complete the table
Who is entitled to benefit from these
incentives?
The type of incentives
Incentivized performance indicator
All employees Recognition (non-monetary)
Employees can submit ideas for new environmental programs, and are eligible to receive spot awards such as gifts for coming up with ideas that enhances the company's overall environmental performance, including those that result in greenhouse gas emissions reductions according to TPM Suggestion&Appreciation Evaluation System.
Further Information
VESTEL ELECTRONICS is continue to impelement TPM (Total Productive Maintenance) program and was awarded by Japan Institute of Plant Maintenance at the end of 2012. In the framework of this program , Vestel slogan comes from the fact that Vestel is friend to its employees, customers,suppliers, share holders, the community and beyond all, mother earth. Vestel Electronics started TPM program to avoid any sacrifice of quality while remaining competitive. In accordance with this aims, Vestel mainly focused on following items: Reducing number of work accidents, Increasing production capacity (OEE), Decreasing unit cost ,Increasing First time true rate, Reducing Scrap rate, Decreasing Breakdowns, Decreasing Service Call Rate, Reducing Maintenance Costs , Decreasing spare part stocks and usage cost, Improving Time to delivery, Shortening lead times on all processes, Decreasing Setup times, Becoming a benchmark plant in 5S achievement and creating a better working environment, Reducing Energy use, Increasing Number of suggestions, Reducing Environmental pollution, Reducing Consumable material usage. These aims can serve reducing carbon disclosure;directly or indirectly. In order to reach these goals, VESTEL builds up 9 committees and Suggestion and Appreciation System all around the factory. Then,VESTEL identified and set the rules for evaluation and awarding. The summary of VESTEL Suggestion and Appreciation System can be seen attached.
Attachments
https://www.cdproject.net/sites/2013/59/21159/Investor CDP 2013/Shared Documents/Attachments/InvestorCDP2013/1.Governance/VESTEL_SUGGESTION_EVALUATION_GUIDE_SUMMARY.pdf
Page: 2. Strategy
2.1
Please select the option that best describes your risk management procedures with regard to climate change risks and opportunities Integrated into multi-disciplinary company wide risk management processes
2.1a
Please provide further details The risk management procedure related to climate change risks and opportunities basically involves consideration of regulatory and reputational risks, which may have the highest impact on the demand for our products (prioritization criteria). The procedure is mostly influenced by the climate change awareness among the top-level management and the requests/feedback of our consumers and retailers concentrating more on climate change/energy efficiency related performance. The assessment of risks is mainly relying on monitoring of environmental data related to climate change such as GHG emissions and emission intensity (i.e. GHG emissions per product) which is being collected and processed by the Management Systems unit. Chief of Management Systems regularly reports to the responsible executive board member and observed risks (if any) are being discussed by the Board and actions are being defined by the top management. The major environmental and energy performance reporting including performance related to climate change is done by our ISO 14001 Environmental Management representative and ISO 50001 Energy Management Representative at the annual screening meeting. However, chief of Management Systems and Facility Energy Manager have continuous and direct communication with the responsible executive board member for matters that require earlier consideration. There also the Audit Committee, operating under Zorlu Holding, implementing audits also on our environmental and energy performance, which identifies any problems related to environmental compliance and implementation of environmental strategy. Included in the collected environmental data, the GHG emissions data is presented with Scope 1, Scope 2 and Scope 3 emissions. It means that the risks and opportunities lying in the up-stream and down-stream supply chains are also evaluated, which results in actions such as identifying alternative suppliers, investing in R&D for using of alternative raw materials/production methods, observing the transportation performance etc. With the aim of early detection of risks that may jeopardize company's existence, development, and in order to be able to manage and implement necessary measures, Zorlu Holding's Corporate Risk Management Department commenced -at first quarter of 2012- its operations as support. In this context, to be effective for all of the associated companies operating within Zorlu Holding, Zorlu Risk Policy;Procedure and Enterprise Risk Management framework was prepared. Studies as well as the evaluation of financial risks, operational, environmental technological, etc. are included in the non-financial risks.
2.2
Is climate change integrated into your business strategy? Yes
2.2a
Please describe the process and outcomes Having received significant attention of governments, investors and also individuals over the last decades, the risks associated with the climate change are inevitably affecting the manufacturing industry as well as all industries, although the risks are assumed not to have considerably higher impacts as in the case of energy sector and/or energy intensive industries. As Vestel Electronics, we are placing „environmental sustainability‟ and decreasing the ecological footprint of our products at the core of our business strategy. Furthermore, as being the manufacturer of high technology energy efficient products, which help our consumers to actually reduce their footprint, we have increased awareness on the impacts of climate change on our business. Climate drivers are important factors that we pay attention in building our broad company strategy that addresses; •Caring for the environment and climate starting from the designing phase of our products to the manufacturing phase •Prioritizing investment and expansion in manufacturing of the most energy efficient products in our production portfolio •Increasing RD activities and dedicated budget for developing new production methodologies and products with decreased ecological footprint •Continuously looking for opportunities to reduce waste and enable use of materials suitable for reuse and recycle • Promoting use of new technologies to save energy and to boost energy efficiency in all operations •Raising employees‟ and consumers‟ awareness on environmental protection and energy efficiency •Ensuring effective communication to stakeholders and proper disclosure of environmental and climate performance The basic influence of climate change in our strategy is that we have taken the first step in preparing our company for the impacts by working on understanding how our business activities and investments are affected by climate change and preparing the infrastructure to make it a part of our management culture also by identifying the interdependencies between climate change risks and other risks relevant to our company. Investing in R&D has always been valued by our company, and R&D that is directed to serving for eliminating climate risks, such as developing practices and/or products that improve efficiency and/or eliminate emissions both on the production side and on the consumer side, has become our leading strategy. While building our climate strategy, in the short term, we have started by quantifying our emissions broadly and we are planning to prepare a detailed carbon emission inventory and seek for third party verification. In the medium term, we will also be identifying and quantifying the carbon impacts along our value chain. In the long terms we will be planning for putting targets related to our climate performance. On the product end, our strategy has basically led to manufacturing of Energy Class A TVs and to our decision in expanding business in manufacturing of LED TVs and eco TVs in 2012 by increasing our production capacity. We also spared an unlimited R&D budget for developing products with improved environmental performance. Vestel Electronics, which is already a strong market player, is gaining distinctive competency through implementation of its business strategy, which enables our company to be the manufacturer of most energy efficient products with decreased ecological footprint, which are being preferred by the environmentally conscious consumers, who are increasing with a sharp pace.
2.2b
Please explain why not
2.3
Do you engage in activities that could either directly or indirectly influence policy on climate change through any of the following? (tick all that apply) Direct engagement Trade associations
2.3a
On what issues have you been engaging directly?
Focus of legislation
Corporate Position
Details of engagement Proposed solution
Energy efficiency
Support
We are engaging with policy makers, i.e. Ministry of Environment and Urbanisation, Ministry of Energy and Natural Sources, Ministry of Science, Industry and Technology as an individual company as well as with trade associations. During the EU energy labeling adaptation process in Turkey, Vestel shared its opinions with Ministry of Science, Industry and Technology.
Energy Labeling Regulation is completely supported by Vestel.
Other: Support
We are engaging with Turkish Standards Institution via Mirror Committees. Because Turkish Standards Institution is a member of International Organization for Standardization (ISO), and the International Electrotechnical Commission (IEC) on 26 May 1955 and 1 January 1956 respectively, we as Vestel Electronics directly influence the consumer products, energy consumption and environment related standards.
As a major player, by joining Mirror Committees, we support the creation and improvement of the standards.
2.3b
Are you on the Board of any trade associations or provide funding beyond membership? Yes
2.3c
Please enter the details of those trade associations that are likely to take a position on climate change legislation
Trade association
Is your position
on climate change
consistent with
theirs?
Please explain the trade association's position How have you, or are you attempting to influence the
postion?
TESİD Consistent
The Electronic Industries in Turkey are organized in an independent association in order to deal with the common interests of the individual companies. In 2000, due to rapid changes in the high tech industry TESID has decided to widen its scope and include software houses and telecom operators accordingly. MISSION: Leading the Turkish Electronics Industry, Information Technologies and related service sectors towards continuous competitiveness and increasing its contributions to the national economy and the people. VISION: 1. Encouraging and supporting technological creativity to achieve a common goal among universities, industry and the government so that competitive, flexible, productive and high quality goods and services are produced. 2. To support: b) the development of a modern, globally competitive electronics industry. c) the expansion of capacity and productivity as well as the enchancement of the investment opportunities of the industry. d) the improvement of the standard of living of employees, for greater employee satisfaction. 3. Concerning policies, strategies, standards and development within the electronics industry. 4. Supporting the Electronics Industry to develop into a strong, environmentally aware, safety conscious establishment that is an overall positive contributor to the community.
Supporting the Electronics Industry to develop into a strong, environmentally aware, safety conscious establishment that is an overall positive contributor to the community.
TÜRKBESD Consistent
White Goods Manufacturers‟ Association of Turkey, whose acronym is TÜRKBESD, was established in 1986 as White Goods Manufacturers‟ Association (BESD) by the leading white goods companies of the sector. In 1999, following its membership to the European Union‟s senior organization of the field CECED (European Committee of Domestic Equipment Manufacturers), the association received permission to use “Turkey” in its name through a Cabinet of Ministers decree, and changed its name to White Goods Manufacturers‟ Association of Turkey (TÜRKBESD). Currently, the association has six members: Arçelik, B/S/H,
Vestel is one of the board members of TURKBESD and works close with other members to drive TURKBESD policies related with energy efficiency, environmental compliance regulations. For instance, recent studies are about the determining control and collect methods of waste electrical and electronic equipments via directives such as AEEE.
Trade association
Is your position
on climate change
consistent with
theirs?
Please explain the trade association's position How have you, or are you attempting to influence the
postion?
Candy Group, Demirdöküm, Indesit, and Vestel. The association represents approximately 90-91% of the sector. Additionally, TÜRKBESD represents Turkey at CECED (European Committee of Domestic Equipment Manufacturers), which is a platform where home appliance manufacturers in the European Union come together to make decisions. The efforts in the EU are pursued through this membership, and specialist technical personnel of the member companies participate in the technical committee works of the said organization. When needed and requested, the association makes statements to the relevant ministries, NGOs and media (Ministry of Science, Industry and Technology, Ministry of Environment and Urban Planning, Ministry of Energy and Natural Resources, Ministry of Economy, Ministry of Customs and Trade, General Directorate for the Protection of Consumers and Competition, the Union of Chambers and Commodity Exchanges of Turkey, Undersecretariat of Foreign Trade, Central Bank of the Republic of Turkey, TUSIAD [Turkish Industry and Business Association]).
TUBİSAD Consistent
TUBISAD is representing the strongest collective voice of the companies operating in Information and Communications Technology (ICT) and New Media sectors. Over 200 active member companies of TUBISAD are governing an economic volume of annually 40 billion USD in Turkey. The primary mission of TUBISAD is to foster ICT in becoming the fundamental sector contributing to Turkey‟s economic growth and to promote collective interests of the member companies while abiding by universal values and maintaining its independency. TUBISAD‟s Member of Board combines 21 direct and 8 deputy members from the leaders of the Turkish ICT sector. Activities and Services 1 - Impact on Sectoral Policies ◦Increasing the level of support for innovation ◦Fostering the development of medium sized enterprises
Vestel is board member of Tubisad and drives/supports Tubisad environmental/climate change policy via Government Relations Committee.The objectives are following-up regulatory policy changes and developments related to the ICT sector, submitting collective opinion of the sector on improvement opportunities. Regulatory Policy Committee is supported by the following working groups each focusing on the related regulatory policies concerning the ICT sector; • Hardware Industry Regulations • European Union Alignment and Relations with DIGITALEUROPE • Environmental Regulations • Consumer Law • E-Invoice • Government Incentives related to ICT
Trade association
Is your position
on climate change
consistent with
theirs?
Please explain the trade association's position How have you, or are you attempting to influence the
postion?
◦Facilitating standardization of regulations imposed on taxation and foreign trade and auditing of compliance with them ◦Advocating widespread compliance with the copyright protection laws ◦Increasing the number of public services offered via electronic platforms ◦Supporting environment-friendly technologies 2 - Increasing Publicity and Awareness about the Sector ◦Creating awareness about the economic importance of the sector ◦Announcing nationwide and international success stories ◦Communicating collective objectives of the sector ◦Building strong relationships with the local and foreign press 3 - Sectoral Growth and Profitability ◦Development of local value added solutions and services ◦Launching sectoral standards, certification programmes and regulations ◦Fostering high quality in education and employment ◦Establishing proper conditions for fair competition ◦Fostering export sales of technological products and services ◦Enabling collaboration and information sharing among companies in sector 4 - Center for Reliable Commercial and Intellectual Information ◦Reliable sectoral data creation and sharing ◦Performing sectoral data analysis and market research ◦Informing the society about sectoral trends and estimates
EU Trade Associations
Consistent
Vestel Electronics has membership on Trade Associations of some European countries via its sales offices i.e. Vestel Germany, Vestel UK, Vestel France, Vestel Italy, Vestel Iberia which are located in these countries.
We are engaging with European countries' policy makers by sharing our comments via Vestel sales offices.
2.3d
Do you publically disclose a list of all the research organizations that you fund?
2.3e
Do you fund any research organizations to produce public work on climate change?
2.3f
Please describe the work and how it aligns with your own strategy on climate change
2.3g
Please provide details of the other engagement activities that you undertake
2.3h
What processes do you have in place to ensure that all of your direct and indirect activities that influence policy are consistent with your overall climate change strategy? We are engaging with policy makers, i.e. Ministry of Environment and Urbanisation, Ministry of Energy and Natural Resources, Ministry of Science,Industry and Technology, Turkish Standards Institution as an individual company and also through TESID (Turkish Association of electronics and Information Industries), TURKBESD (Turkish White Goods Manufacturers' Association) , TUBISAD (Informatics Industry Association) and European countries' trade associations via Vestel sales offices. We have been invited by the Climate Platform, which we welcomed as it presents us the opportunity to engage in climate change issues within a network of companies having increased awareness. Our engagement with policy makers is mainly providing our feedback on transposition and/or implementation of relevant EU Directives. We have been advocating all actions that serve for improving the environmental performance required from our sector both related to manufacturing processes and the products themselves. We were the first company to have complied with the EU Directives relevant for our sector that encourages improving products energy efficiency and we have given our feedback many times in the process of aligning our legislation with the EU including, Energy Related Products(ErP) Eco-Design Directive, Energy Labeling Directive, Waste Electrical and Electronic Equipment (WEEE) Directive and Restriction Of The Use Of Certain Hazardous Substances (RoHS) Directive.
2.3i
Please explain why you do not engage with policy makers
Further Information
Page: 3. Targets and Initiatives
3.1
Did you have an emissions reduction target that was active (ongoing or reached completion) in the reporting year? Absolute target
3.1a
Please provide details of your absolute target
ID
Scope
% of emissions in scope
% reduction from base
year
Base year
Base year emissions
(metric tonnes CO2e)
Target year
Comment
TAS12 Scope 1+2
100% 10% 2010 53176.15 2020 Years are both fiscal, that is base year is FY2010 and target year is FY2020.
3.1b
Please provide details of your intensity target
ID
Scope
% of emissions in
scope
% reduction from base year
Metric
Base year
Normalized base year emissions
Target year
Comment
3.1c
Please also indicate what change in absolute emissions this intensity target reflects
ID
Direction of change anticipated in absolute Scope 1+2 emissions at
target completion?
% change anticipated in absolute Scope 1+2
emissions
Direction of change anticipated in absolute Scope 3 emissions at target
completion?
% change anticipated in absolute Scope 3
emissions
Comment
3.1d
Please provide details on your progress against this target made in the reporting year
ID
% complete (time)
% complete (emissions)
Comment
TAS12 20% 0% Vestel Electronics decided to takeover and merge with Vestel Digital has 60.000m2 area and 1000 employee. This merge operation naturally caused a significant increase in the energy consumption of Vestel Electronics. Therefore we couldn't catch the sub-target in 20% time period (2012) of the total target time(2020).
3.1e
Please explain (i) why not; and (ii) forecast how your emissions will change over the next five years
3.2
Does the use of your goods and/or services directly enable GHG emissions to be avoided by a third party? Yes
3.2a
Please provide details (see guidance) Our company manufactures high technology LED TVs which are able to achieve 80 % energy savings compared to LCD TVs. Considering that there are 18 million houses in Turkey and assuming each has minimum 1 TV in operation for 5 hours every day, exchanging all these TV units with Vestel TVs would save up to 1,000 GWh energy which corresponds to an GHG emission reduction of 617,000 tCO2e.
3.3
Did you have emissions reduction initiatives that were active within the reporting year (this can include those in the planning and implementation phases) Yes
3.3a
Please identify the total number of projects at each stage of development, and for those in the implementation stages, the estimated CO2e savings
Stage of development
Number of projects
Total estimated annual CO2e savings in metric tonnes CO2e (only for rows marked *)
Under investigation
To be implemented*
Implementation commenced* 1 77.13
Implemented* 8 10667.15
Not to be implemented
3.3b
For those initiatives implemented in the reporting year, please provide details in the table below
Activity type
Description of activity
Estimated annual CO2e
savings (metric tonnes CO2e)
Annual monetary savings (unit currency - as
specified in Q0.4)
Investment required (unit currency - as
specified in Q0.4)
Payback period
Energy efficiency: Processes
Heat jackets projects for Injection machines 815.62 237946 17136 <1 year
Energy efficiency: Processes
External oil cooling pump project for Injection machines 562.95 164228 81000 <1 year
Energy efficiency: Processes
Air Absorption Conditioning Project for Free Cooling Chillers
199.91 58320 23220 <1 year
Energy efficiency: Processes
Combining of Plastic Factories 7904.99 2280530 534000 <1 year
Energy efficiency: Processes
Plastic Injection B1 zone free cooling application 457.15 121364 105600 <1 year
Energy efficiency: Processes
Energy saving project at Board production factory automatic insertion machines' ovens
10.72 3093 500 <1 year
Energy efficiency: Processes
Steam Injection cooling towers pump automation project
89.79 20233 10000 <1 year
Energy efficiency: Processes
Steam injection saving project by steam-hall optimization
626.65 103720 82000 <1 year
Energy efficiency: Building services
LED armature project 77.13 22250 92000 4-10 years
3.3c
What methods do you use to drive investment in emissions reduction activities?
Method
Comment
Compliance with regulatory requirements/standards
We are continuously monitoring compliance with Energy related Products (ErP) Eco-Design Directive, Energy Labelling Directive, Waste Electrical and Electronic Equipment (WEEE) directive and Restriction Of The Use Of Certain Hazardous Substances (RoHS) Directive along with other relevant national environmental regulations.
Method
Comment
Dedicated budget for energy efficiency
We have implemented many projects that improved our energy efficiency such as processes energy efficiency ( plastic factory processes improvements, snowbox factory processes improvements etc.)
Dedicated budget for low carbon product R&D
We have invested in R&D related to development of our LED TV product and also in R&D which has led to elimination of an emission/energy intensive step which used to be employed in soldering (Pin in Paste) process.
Employee engagement Based on our TPM project framework , we have provided all employees to attend environmental improvement activities with suggestion evaluation and appreciation recognazition system which has over 700.000 TRY investment cost .
3.3d
If you do not have any emissions reduction initiatives, please explain why not
Further Information
Page: 4. Communication
4.1
Have you published information about your company’s response to climate change and GHG emissions performance for this reporting year in places other than in your CDP response? If so, please attach the publication(s)
Publication
Page/Section reference
Attach the document
In voluntary communications (complete)
p.98-133 https://www.cdproject.net/sites/2013/59/21159/Investor CDP 2013/Shared Documents/Attachments/Investor-4.1-C3-IdentifytAttachment/Investor-4.1-PublishedInformation1/UNglobalcompact-2012.pdf
In mainstream financial p.40 p.44-45 https://www.cdproject.net/sites/2013/59/21159/Investor CDP 2013/Shared Documents/Attachments/Investor-
Publication
Page/Section reference
Attach the document
reports (complete) 4.1-C3-IdentifytAttachment/Investor-4.1-PublishedInformation2/VESTEL_ELECTRONICS_ANNUAL REPORT_2012.pdf
In voluntary communications (complete)
p.4-9 https://www.cdproject.net/sites/2013/59/21159/Investor CDP 2013/Shared Documents/Attachments/Investor-4.1-C3-IdentifytAttachment/Investor-4.1-PublishedInformation3/Zorlu-Dergi.pdf
In voluntary communications (complete)
p.34-36 p.64 https://www.cdproject.net/sites/2013/59/21159/Investor CDP 2013/Shared Documents/Attachments/Investor-4.1-C3-IdentifytAttachment/Investor-4.1-PublishedInformation4/Vestel VS Dergi.pdf
Further Information
All files related to publications on Vestel Electronics' response to climate change and GHG emission data have been given in the attached folder (communications VESTEL E.zip) provided in the 'zip' form.
Attachments
https://www.cdproject.net/sites/2013/59/21159/Investor CDP 2013/Shared Documents/Attachments/InvestorCDP2013/4.Communication/Communications VESTEL E.7z
Module: Risks and Opportunities [Investor]
Page: 5. Climate Change Risks
5.1
Have you identified any climate change risks (current or future) that have the potential to generate a substantive change in your business operations, revenue or expenditure? Tick all that apply Risks driven by changes in regulation Risks driven by changes in physical climate parameters
Risks driven by changes in other climate-related developments
5.1a
Please describe your risks driven by changes in regulation
ID
Risk driver
Description
Potential impact
Timeframe
Direct/ Indirect
Likelihood
Magnitude of impact
RTARE Fuel/energy taxes and regulations
We may be exposed to the risk of carbon taxes via our suppliers operating in certain parts of the world, where these taxes expected in the near future.
Increased operational cost
1-5 years Indirect (Supply chain)
More likely than not
Medium-high
RPERS Product efficiency regulations and standards
If we fail to comply with the product efficiency regulations and standards required for selling our products to EU and Domestic Market, there is a risk for us to loose 95% of our market.
Reduced demand for goods/services
Current Direct Very unlikely High
RPLRS Product labeling regulations and standards
If we fail to comply with the product efficiency regulations and standards required for selling our products to EU and Domestic Market, there is a risk for us to loose 95% of our market.
Reduced demand for goods/services
Current Direct Very unlikely High
5.1b
Please describe (i) the potential financial implications of the risk before taking action; (ii) the methods you are using to manage this risk and (iii) the costs associated with these actions ID RTARE: i. We have not determined any financial implications of the risk before taking action. ii. We identify alternative suppliers in our supply chain and invest in R&D studies for developing alternative production methodologies and/or products. iii. We have invested 58 million USD for R&D in 2012. ID RPERS and RPLRS: i. If we loose our share in the EU market we will be losing 75 % of our revenues. ii. We have reorganized our manufacturing processes and product selections to comply
with relevant national and international regulations that could affect our domestic selling and exports. iii. We have invested 200,000 TRY for compliance with EU product efficiency and labeling regulations and standards.
5.1c
Please describe your risks that are driven by change in physical climate parameters
ID
Risk driver
Description
Potential impact
Timeframe
Direct/ Indirect
Likelihood
Magnitude of impact
RPCTE Change in temperature extremes
Reduced equipment efficiency due to temperature extremes may affect our manufacturing performance and/or increase our air conditioning costs.
Increased operational cost
Current Direct Unlikely Low-medium
RPOP1 Other physical climate drivers
Extreme weather events may cause delays in product raw material import
Reduction/disruption in production capacity
Current Indirect (Supply chain)
Unlikely Medium-high
RPOP2 Other physical climate drivers
Extreme weather events may cause delays in product exports to countries worldwide.
Reduced demand for goods/services
Current Direct Unlikely Medium-high
5.1d
Please describe (i) the potential financial implications of the risk before taking action; (ii) the methods you are using to manage this risk; and (iii) the costs associated with these actions ID RPCTE, RPOP1 and RPOP2: i) Potential financial implications of the risk are hard to determine due to the uncertainty related to such physical phenomena. ii) Our basic approach in managing physical risks due to climate change is to make proper site selection for basing our manufacturing plants. Our major manufacturing plant, covered in this response, is in Manisa, where it is not expected to experience weather extremes and/or impacts from a sea level rise. Another approach we employ in reducing the risks is to identify alternative suppliers in our supply chain. Also we have started Supplier Risk Evaluation System study with Zorlu Holding Risk Management Department. iii) We have not determined the costs associated with such actions.
5.1e
Please describe your risks that are driven by changes in other climate-related developments
ID
Risk driver
Description
Potential impact
Timeframe
Direct/ Indirect
Likelihood
Magnitude of impact
RCCOB Changing consumer behaviour
Any failure related to implementation of our environment and climate friendly business strategy and reduced environmental performance in our activities may result in losing of our consumers and our market share.
Reduced demand for goods/services
Current Indirect (Client)
Very unlikely
Low-medium
RREPU Reputation
Our company also sees the risk in failing to actively disclose environment and climate related performance to current and potential investors and therefore affecting our stock prices.
Reduced stock price (market valuation)
Current Direct Very unlikely
Low-medium
5.1f
Please describe (i) the potential financial implications of the risk before taking action; (ii) the methods you are using to manage this risk; (iii) the costs associated with these actions ID RCCOB: (i) If we lose 10 % of our customers both in the domestic market and EU market due to customers not buying our products due to our poor environmental performance this would result in an 10 % decrease in our revenues. (ii) We are continuously investing in new technologies and putting emphasis on making and/or expanding our investments for production of most energy efficient products. We only manufacture A, A+ and A++ class goods. We are putting labels on our products to increase consumers‟ awareness on our environmental performance as well as disseminating such information via our web-site, catalogues and advertising on all media. (iii) We have spent a total of 475 million TRY for disclosure, marketing and advertising in 2012. ID RREPU: (i) If we fail to properly disclose environmental information, this may undermine our company's reputation among investors. This may in turn result in a decline in our stock prices. (ii) We try to fill in every opportunity to disclose our good environmental performance putting emphasis on using global tools to disclose our data such as publishing the UN Global Compact Progress Report and most recently by answering the CDP questionnaire. (iii) We have spent a total of 475 million TRY for disclosure, marketing and advertising in 2012.
5.1g
Please explain why you do not consider your company to be exposed to risks driven by changes in regulation that have the potential to generate a substantive change in your business operations, revenue or expenditure
5.1h
Please explain why you do not consider your company to be exposed to risks driven by physical climate parameters that have the potential to generate a substantive change in your business operations, revenue or expenditure
5.1i
Please explain why you do not consider your company to be exposed to risks driven by changes in other climate-related developments that have the potential to generate a substantive change in your business operations, revenue or expenditure
Further Information
Page: 6. Climate Change Opportunities
6.1
Have you identified any climate change opportunities (current or future) that have the potential to generate a substantive change in your business operations, revenue or expenditure? Tick all that apply Opportunities driven by changes in regulation Opportunities driven by changes in physical climate parameters Opportunities driven by changes in other climate-related developments
6.1a
Please describe your opportunities that are driven by changes in regulation
ID
Opportunity driver
Description
Potential impact
Timeframe
Direct/Indirect
Likelihood
Magnitude of impact
OPERS
Product efficiency regulations and standards
Our facilities will comply with the "By-Law on Energy Performance of Buildings" and will perform periodic energy audits and performance reporting according to this by-law. This will enable us to identify any energy efficiency improvement.
Reduced operational costs
Current Direct Virtually certain
Medium-high
OPLRS Product labeling regulations and standards
It has become compulsory to label all TVs with EU and Domestic Market energy labels in order to be able to sales to EU countries and domestic market. As a company who has established its production infrastructure ensuring compliance with such expected regulation well ahead of its enforcement, we have gained competitive advantage in our market.
Increased demand for existing products/services
Current Direct Virtually certain
Medium-high
6.1b
Please describe (i) the potential financial implications of the opportunity; (ii) the methods you are using to manage this opportunity and (iii) the costs associated with these actions ID OPERS and OPLRS: i. Assuming that we increase our export capacity by 10 %, our revenues would increase by 8 %. ii. We are closely monitoring such regulatory opportunities especially in the EU market, as our main market, by monitoring all upcoming regulations and standards starting from their drafting. iii. We have invested a total of 200,000 TRY for preparing the technical and administrative infrastructure required for compliance with the EU legislation related to product efficiency and eco-labelling.
6.1c
Please describe the opportunities that are driven by changes in physical climate parameters
ID
Opportunity driver
Description
Potential impact
Timeframe
Direct/ Indirect
Likelihood
Magnitude of impact
OCPCP Snow and ice
We have been observing an increased demand for our products during times when weather conditions encourage and/or force people to stay indoors such as snow and ice.
Increased demand for existing products/services
Current Indirect (Client)
Likely Medium
6.1d
Please describe (i) the potential financial implications of the opportunity; (ii) the methods you are using to manage this opportunity and (iii) the costs associated with these actions ID OCPCP: i) Potential financial implications of the opportunity are hard to determine due to uncertainty related to such physical phenomena. ii) While managing inventory, advertising and sales channels, we also notice this quantity increase caused by weather conditions. iii) Seasonal costs are like high inventory cost and advertising costs.
6.1e
Please describe the opportunities that are driven by changes in other climate-related developments
ID
Opportunity driver
Description
Potential impact Timeframe
Direct/ Indirect
Likelihood
Magnitude of impact
OCCOB Changing consumer behaviour
It is observed that the consumers‟ climate awareness is rising every year. As a company building its strategy upon sustainability of natural resources and materials in its operations, and investing in high technology helping to reduce the ecological footprint of its products, we see this as an important opportunity to drive more consumers to buying our products and continue to be an important player and keep our competitiveness in the market. Vestel Electronics is the manufacturer of Eco TVs with reduced power consumption in stand-by and
Increased demand for existing products/services
1-5 years Indirect (Client)
Virtually certain
High
ID
Opportunity driver
Description
Potential impact Timeframe
Direct/ Indirect
Likelihood
Magnitude of impact
operation mode and energy efficient LED TVs.
OREPU Reputation Positive perceptions about VESTELs carbon performance by clients, investors and the general public will enhance its brand equity in the marketplace.
Increased stock price (market valuation)
Current Indirect (Client)
Very likely Medium
OFSEC
Fluctuating socio-economic conditions
VESTEL is confident that downturns in the economy will cause consumers to want more energy efficient products. This works in VESTEL's favor and will result in increased sales.
Premium price opportunities
Current Direct Very likely Medium-high
6.1f
Please describe (i) the potential financial implications of the opportunity; (ii) the methods you are using to manage this opportunity; (iii) the costs associated with these actions i) We expect that the eco TV and LED TV market share will expand up to 90 % in 2013 and continue to increase to an estimated 100 % in 2015. We also expect that the share of our eco-products will be 100 % in 2015, as we observe from the buying trends, which favor eco-friendly design and energy efficiency. A review of the global market and estimated revenues spanning the years 2010 to 2013, indicates that the LED TV market has rapidly expanded up to 37.3 billion USD in 2012 (when CCFL TV market share estimated to be around 12.3 billion USD) from 18.8 billion USD in 2010 (when CCFL TV market share was 36.5 billion USD) and is expected to reach 9.5 billion USD only in the first quarter of 2013. (ii) We have increased our capacity utilization in making energy-efficient LED TVs from 62% in 2010 to 79% in 2011 and to 100% in 2012. We are focusing on promoting LED TVs and eco TVs, supported by a strengthened sales channels/network for keeping the increasing sales ratio of these products. (iii) We have made investment worth of 61 million USD in our energy-efficient LED TV production plant for business expansion and our R&D investments reached up to 58 million USD in 2012 supported with our „unlimited R&D budget‟ strategy.
6.1g
Please explain why you do not consider your company to be exposed to opportunities driven by changes in regulation that have the potential to generate a substantive change in your business operations, revenue or expenditure
6.1h
Please explain why you do not consider your company to be exposed to opportunities driven by physical climate parameters that have the potential to generate a substantive change in your business operations, revenue or expenditure
6.1i
Please explain why you do not consider your company to be exposed to opportunities driven by changes in other climate-related developments that have the potential to generate a substantive change in your business operations, revenue or expenditure
Further Information
Module: GHG Emissions Accounting, Energy and Fuel Use, and Trading [Investor]
Page: 7. Emissions Methodology
7.1
Please provide your base year and base year emissions (Scopes 1 and 2)
Base year
Scope 1 Base year emissions (metric tonnes
CO2e)
Scope 2 Base year emissions (metric
tonnes CO2e)
Fri 01 Jan 2010 - Fri 31 Dec 2010
1816.31 52608.99
7.2
Please give the name of the standard, protocol or methodology you have used to collect activity data and calculate Scope 1 and Scope 2 emissions
Please select the published methodologies that you use
ISO 14064-1
7.2a
If you have selected "Other", please provide details below
7.3
Please give the source for the global warming potentials you have used
Gas
Reference
CO2 IPCC Fourth Assessment Report (AR4 - 100 year)
CH4 IPCC Fourth Assessment Report (AR4 - 100 year)
N2O IPCC Fourth Assessment Report (AR4 - 100 year)
7.4
Please give the emissions factors you have applied and their origin; alternatively, please attach an Excel spreadsheet with this data
Fuel/Material/Energy
Emission Factor
Unit
Reference
Fuel/Material/Energy
Emission Factor
Unit
Reference
Natural gas 56100 Other: kgCO2 per tJ IPCC (2006)
Natural gas 1 Other: kgCH4 per tJ IPCC (2006)
Diesel/Gas oil 74100 Other: kgCO2 per tJ IPCC (2006)
Diesel/Gas oil 43 Other: tJ/Gg IPCC (2006)
Electricity 617 metric tonnes CO2e per MWh
Turkish Regulation "By-Law on Energy Performance of Buildings"
Steam 267 Other: kgCO2 per t supplier's data and rough emission factors
Heat 0.48 Other: kgCO2 per kcal supplier's data and rough emission factors
Further Information
Page: 8. Emissions Data - (1 Jan 2012 - 31 Dec 2012)
8.1
Please select the boundary you are using for your Scope 1 and 2 greenhouse gas inventory Operational control
8.2
Please provide your gross global Scope 1 emissions figures in metric tonnes CO2e 2490.94
8.3
Please provide your gross global Scope 2 emissions figures in metric tonnes CO2e
56122.15
8.4
Are there are any sources (e.g. facilities, specific GHGs, activities, geographies, etc.) of Scope 1 and Scope 2 emissions which are not included in your disclosure? No
8.4a
Please complete the table
Source
Scope
Explain why the source is excluded
8.5
Please estimate the level of uncertainty of the total gross global Scope 1 and 2 emissions figures that you have supplied and specify the sources of uncertainty in your data gathering, handling and calculations
Scope 1
emissions: Uncertainty
range
Scope 1
emissions: Main
sources of uncertainty
Scope 1 emissions: Please
expand on the uncertainty in your data
Scope 2
emissions: Uncertainty
range
Scope 2
emissions: Main
sources of uncertainty
Scope 2 emissions: Please expand on the
uncertainty in your data
More than 5% but less than or equal to 10%
Assumptions Other: Supplier's
We used published default emission factors of IPCC 2006 for natural gas and diesel oil
More than 5% but less than or equal to 10%
Assumptions Other: Supplier's
The national grid emission factor published in the Turkish Regulation "By-Law on Energy Performance of Buildings" was used. The details and the most recent
Scope 1
emissions: Uncertainty
range
Scope 1
emissions: Main
sources of uncertainty
Scope 1 emissions: Please
expand on the uncertainty in your data
Scope 2
emissions: Uncertainty
range
Scope 2
emissions: Main
sources of uncertainty
Scope 2 emissions: Please expand on the
uncertainty in your data
data
which have certain uncertainty. We used supplier data related to natural gas consumption.
data
data used for the calculation of this emission factor is not presented in the regulation hence we assume the uncertainty to be not more than 10% by considering the changes in the grid system. We used the supplier's data and rough emission factors for estimating emissions from purchased steam and heat.
8.6
Please indicate the verification/assurance status that applies to your Scope 1 emissions No third party verification or assurance
8.6a
Please indicate the proportion of your Scope 1 emissions that are verified/assured
8.6b
Please provide further details of the verification/assurance undertaken, and attach the relevant statements
Type of verification or assurance
Relevant standard
Attach the document
8.6c
Please provide further details of the regulatory regime to which you are complying that specifies the use of Continuous Emissions Monitoring Systems (CEMS)
Regulation
% of emissions covered by the system Compliance period
Evidence of submission
8.7
Please indicate the verification/assurance status that applies to your Scope 2 emissions No third party verification or assurance
8.7a
Please indicate the proportion of your Scope 2 emissions that are verified/assured
8.7b
Please provide further details of the verification/assurance undertaken, and attach the relevant statements
Type of verification or assurance
Relevant standard
Attach the document
8.8
Are carbon dioxide emissions from biologically sequestered carbon relevant to your organization? No
8.8a
Please provide the emissions in metric tonnes CO2
Further Information
Page: 9. Scope 1 Emissions Breakdown - (1 Jan 2012 - 31 Dec 2012)
9.1
Do you have Scope 1 emissions sources in more than one country? No
9.1a
Please complete the table below
Country/Region
Scope 1 metric tonnes CO2e
9.2
Please indicate which other Scope 1 emissions breakdowns you are able to provide (tick all that apply) By activity
9.2a
Please break down your total gross global Scope 1 emissions by business division
Business division
Scope 1 emissions (metric tonnes CO2e)
9.2b
Please break down your total gross global Scope 1 emissions by facility
Facility
Scope 1 emissions (metric tonnes CO2e)
Latitude
Longitude
9.2c
Please break down your total gross global Scope 1 emissions by GHG type
GHG type
Scope 1 emissions (metric tonnes CO2e)
9.2d
Please break down your total gross global Scope 1 emissions by activity
Activity
Scope 1 emissions (metric tonnes CO2e)
Stationary Combustion 1389.24
Mobile Combustion 991.53
Generators 110.17
9.2e
Please break down your total gross global Scope 1 emissions by legal structure
Legal structure
Scope 1 emissions (metric tonnes CO2e)
Further Information
Page: 10. Scope 2 Emissions Breakdown - (1 Jan 2012 - 31 Dec 2012)
10.1
Do you have Scope 2 emissions sources in more than one country? No
10.1a
Please complete the table below
Country/Region
Scope 2 metric tonnes CO2e
Purchased and consumed electricity, heat, steam or cooling (MWh)
Purchased and consumed low carbon electricity, heat, steam or cooling (MWh)
10.2
Please indicate which other Scope 2 emissions breakdowns you are able to provide (tick all that apply) By activity
10.2a
Please break down your total gross global Scope 2 emissions by business division
Business division
Scope 2 emissions (metric tonnes CO2e)
10.2b
Please break down your total gross global Scope 2 emissions by facility
Facility
Scope 2 emissions (metric tonnes CO2e)
10.2c
Please break down your total gross global Scope 2 emissions by activity
Activity
Scope 2 emissions (metric tonnes CO2e)
Administration 2499.65
Design 2327.26
Production 49657.53
Storage 1637.71
10.2d
Please break down your total gross global Scope 2 emissions by legal structure
Legal structure
Scope 2 emissions (metric tonnes CO2e)
Further Information
Page: 11. Energy
11.1
What percentage of your total operational spend in the reporting year was on energy? More than 0% but less than or equal to 5%
11.2
Please state how much fuel, electricity, heat, steam, and cooling in MWh your organization has purchased and consumed during the reporting year
Energy type
MWh
Fuel 9378.66
Electricity 66438.35
Heat 3411.22
Steam 38788.68
Cooling
11.3
Please complete the table by breaking down the total "Fuel" figure entered above by fuel type
Fuels
MWh
Natural gas 6040.16
Diesel/Gas oil 3338.50
11.4
Please provide details of the electricity, heat, steam or cooling amounts that were accounted at a low carbon emission factor
Basis for applying a low carbon emission factor
MWh associated with low carbon electricity, heat, steam or cooling
Comments
No purchases or generation of low carbon electricity, heat, steam or cooling
0 Vestel is located in Manisa Industrial Zone and purchases its energy i.e. electricity, natural gas, heat, steam from Manisa Industrial Zone Energy Facility. For now, there is no low carbon/renewable energy availability in this Industrial Area.
Further Information
Page: 12. Emissions Performance
12.1
How do your absolute emissions (Scope 1 and 2 combined) for the reporting year compare to the previous year? Increased
12.1a
Please complete the table
Reason
Emissions value
(percentage)
Direction of change
Comment
Emissions reduction activities
Divestment
Acquisitions
Mergers 3.25 Increase
Vestel Electronics decided to takeover and merge with Vestel Digital has 60.000m2 area and 1000 employee. This merge operation naturally caused a significant increase in the energy consumption of Vestel Electronics. (Note: Mergers and change in boundary reasons increase 6.55% in total. This ratio is intentionally divided to these two reasons.)
Reason
Emissions value
(percentage)
Direction of change
Comment
Change in output
Change in methodology
Change in boundary
3.30 Increase
Vestel Electronics decided to takeover and merge with Vestel Digital has 60.000m2 area and 1000 employee. This merge operation naturally caused a significant increase in the energy consumption of Vestel Electronics. (Note: Mergers and change in boundary reasons increase 6.55% in total. This ratio is intentionally divided to these two reasons.)
Change in physical operating conditions
Unidentified
Other
12.2
Please describe your gross combined Scope 1 and 2 emissions for the reporting year in metric tonnes CO2e per unit currency total revenue
Intensity figure
Metric numerator
Metric denominator
% change from
previous year
Direction of change from previous year
Reason for change
0.0000078 metric tonnes CO2e
unit total revenue
1.27 Decrease
Although Vestel Electronics merged with Vestel Digital, this figure has decreased due to studies about reducing carbon emission such as process improvements, designing new processes, TPM Suggestion Evaluation and Appreciation System etc.
12.3
Please describe your gross combined Scope 1 and 2 emissions for the reporting year in metric tonnes CO2e per full time equivalent (FTE) employee
Intensity figure
Metric numerator
Metric denominator
% change from
previous year
Direction of change from previous year
Reason for change
0.0291 metric tonnes CO2e
FTE employee
17 Decrease
Although Vestel Electronics merged with Vestel Digital, this figure has decreased due to studies about reducing carbon emission such as process improvements, designing new processes, TPM Suggestion Evaluation and Appreciation System etc.
12.4
Please provide an additional intensity (normalized) metric that is appropriate to your business operations
Intensity figure
Metric numerator
Metric denominator
% change from
previous year
Direction of change from previous year
Reason for change
0.005013 metric tonnes CO2e
unit of production
10.35 Decrease
Although Vestel Electronics merged with Vestel Digital, this figure has decreased due to studies about reducing carbon emission such as process improvements, designing new processes, TPM Suggestion Evaluation and Appreciation System etc.
Further Information
Page: 13. Emissions Trading
13.1
Do you participate in any emissions trading schemes? No, and we do not currently anticipate doing so in the next 2 years
13.1a
Please complete the following table for each of the emission trading schemes in which you participate
Scheme name
Period for which data is supplied
Allowances allocated
Allowances purchased
Verified emissions in metric tonnes CO2e
Details of ownership
13.1b
What is your strategy for complying with the schemes in which you participate or anticipate participating?
13.2
Has your company originated any project-based carbon credits or purchased any within the reporting period? No
13.2a
Please complete the table
Credit origination
or credit purchase
Project type
Project identification
Verified to which standard
Number of credits (metric
tonnes of CO2e)
Number of credits (metric tonnes
CO2e): Risk adjusted volume
Credits retired
Purpose, e.g. compliance
Further Information
Page: 14. Scope 3 Emissions
14.1
Please account for your organization’s Scope 3 emissions, disclosing and explaining any exclusions
Sources of Scope 3 emissions
Evaluation status
metric tonnes CO2e
Methodology
Percentage of emissions
calculated using
primary data
Explanation
Purchased goods and services
Relevant, not yet calculated
Capital goods Relevant, calculated
21.9 Average data is used to calculate transportation of capital goods.
0.01%
This calculation includes the transportation emissions of 11 board production machines, 6 plastic injection machines, 2 painting machines and 2 final assembly machines which are purchased during in 2012.
Fuel-and-energy-related activities (not included in Scope 1 or 2)
Relevant, calculated
785.18
Diesel/Gas oil emission factors that explained in IPCC(2006) are used to calculate emissions of fuel and energy related activities(not included in Scope 1 or 2).
0.01%
This calculation includes fuel consumption of inside transportation cars and manager and top management vehicles provided by Vestel Electronics.
Upstream transportation and distribution
Relevant, not yet calculated
Waste generated in operations
Relevant, not yet calculated
Business travel Relevant, calculated
2075.12
2012 Guidelines to Defra / DECC's GHG Conversion Factors for Company Reporting is used to calculate total emissions of business travels.
0.21% This calculation includes all business flights of Vestel Electronics employee.
Employee commuting Relevant, 4672.99 Diesel/Gas oil emission factors that 0.05% This calculation includes emissions from the
Sources of Scope 3 emissions
Evaluation status
metric tonnes CO2e
Methodology
Percentage of emissions
calculated using
primary data
Explanation
calculated explained in IPCC(2006) are used to calculate employee commuting emissions.
transportation of employees between their homes and Vestel Electronics facilities.
Upstream leased assets
Not relevant, explanation provided
Investments Relevant, not yet calculated
Downstream transportation and distribution
Not relevant, calculated
Processing of sold products
Relevant, not yet calculated
Use of sold products Relevant, calculated
10078185
Electricity emission factor that in explained in Turkish Regulation "By-Law on Energy Performance of Buildings" and International Energy Agency is used.
99.72%
This calculation includes carbon emission caused by sold products in Turkey (emission factor - Turkish Law) and sold products abroad (emission factor - IEA).
End of life treatment of sold products
Relevant, not yet calculated
Downstream leased assets
Relevant, not yet calculated
Franchises Relevant, not yet calculated
Other (upstream)
Other (downstream)
14.2
Please indicate the verification/assurance status that applies to your Scope 3 emissions No third party verification or assurance
14.2a
Please indicate the proportion of your Scope 3 emissions that are verified/assured
14.2b
Please provide further details of the verification/assurance undertaken, and attach the relevant statements
Type of verification or assurance
Relevant standard
Attach the document
14.3
Are you able to compare your Scope 3 emissions for the reporting year with those for the previous year for any sources? No, this is our first year of estimation
14.3a
Please complete the table
Sources of Scope 3
emissions
Reason for change
Emissions value
(percentage)
Direction of change
Comment
14.4
Do you engage with any of the elements of your value chain on GHG emissions and climate change strategies? (Tick all that apply) Yes, our customers
14.4a
Please give details of methods of engagement, your strategy for prioritizing engagements and measures of success We have been working with Walmart since 2011 based on the Walmart Supplier Development Program. This program includes social responsibility issues, health&safety issues and also environmental management issues. Vestel Electronics awarded as self-audit status by Walmart at the end of 2012. Environmental management chapter in this program covers all environmental issues i.e. waste management, legal compliance, natural resources saving. This program done with together Walmart help us to improve our environmental management as well as social responsibility, health&safety.
14.4b
To give a sense of scale of this engagement, please give the number of suppliers with whom you are engaging and the proportion of your total spend that they represent
Number of suppliers
% of total spend Comment
14.4c
If you have data on your suppliers’ GHG emissions and climate change strategies, please explain how you make use of that data
How you make use of the data
Please give details
14.4d
Please explain why not and any plans you have to develop an engagement strategy in the future
Further Information
Module: Sign Off
Page: Sign Off
Please enter the name of the individual that has signed off (approved) the response and their job title ERSİN KÖSEOĞLU MANAGEMENT SYSTEMS
CDP 2013 Investor CDP 2013 Information Request