Çimsa Çimento Sanayi ve Ticaret : Su Raporu'na ulaşmak için tıklayın.

ÇİMSA ÇİMENTO SANAYİ VE TİCARET A.Ş. - Water Security 2021

W0. Introduction

W0.1

(W0.1) Give a general description of and introduction to your organization.

Having commenced its operations in 1972 at the Mersin Plant, Çimsa today operates with five integrated plants in Mersin, Eskişehir, Kayseri, Niğde, and Afyonkarahisar (Afyon Cimento), as well as one grinding facility in Ankara. Since 2013 Çimsa has 51% share of Afyon Cimento and fully integrated into the management system of Çimsa in 2018 including water management.

In addition to grey cement, Çimsa also produces special products such as white cement and calcium aluminate cement as well as ready-mixed concrete. Exporting white cement and special products to more than 65 countries, mainly to markets in the Middle East, Europe, North Africa, and the United States, Çimsa increases the recognition of its brand on international platforms as well as increasingly contributing to its sector and the Turkish economy.

One of the world's three leading brands of white cement, Çimsa is a truly international cement producer with its terminals in Hamburg (Germany), Trieste (Italy), Seville, and Alicante (Spain), Famagusta (TRNC), Constanza (Romania) and Novorossiysk (Russia).

Çimsa maintains its stable growth process backed by its long-standing experience in global and local markets, its know-how, and its R&D work which shapes the sector and its identity as a reliable partner for its 1,148 employees and stakeholders.

In its 47th year of operation, Çimsa took significant steps forward in building a sustainable future. Çimsa's aim of global leadership came one step closer with the agreement to acquire the Buñol Factory in Spain. Following the testing and enhancement work, Çimsa Americas started selling products in the final quarter of 2019. Meanwhile, the Joint Cultural Management One Team-One Voice project was carried out.

The company is also one of the industrial companies of Sabancı Group. Hacı Ömer Sabancı Holding A.Ş., one of Turkey's leading conglomerates, is the parent company and manages the Sabancı Group's companies with a strategic portfolio approach. Turkey's rapidly growing sectors including banking, insurance, energy, cement, retail, and industrial are the main business areas of Sabancı Group. Sabancı Group companies are market leaders in their respective sectors and currently operate in 13 countries and market their products in regions across Europe, Middle East, Asia, North Africa, North, and South America.

Strategy:

Çimsa defined its strategic foundations as;

• Sustainability
• Being Human Oriented, Global Culture
• Digital Transformation

Based on strategic foundations, Çimsa's Strategy is to serve as guidance for its decision-making processes in the Company's operations carried out in the domestic and international markets. Strategical areas to guide are determined as follows;

• Growth and integration
• Cash management, operational and technical discipline
• Digital and cultural transformation

Priorities defined based on the company strategy and stakeholder consultations are;

• Occupational Health and Safety
• Growing in International Markets
• Profitability and Dividends
• Equality at Work
• Customer Loyalty
• Risk Management
• Digitalization
• Cultural and Technological Transformation

CDP

Page

1

of 29

The company follows the capital management model. Six capitals defined and every project under priorities evaluated upon 6 capitals which are;

1. Financial
2. Manufactured
3. Intellectual
4. Human
5. Social and relational
6. Natural.

The Water Strategy of the company is to utilize water efficiently and reduce water consumption during the production phase of the products which is a clear indicator of the life cycle approach of the company.

In 2016, Çimsa started to apply the "ISO 14046 Water footprint" standard which provides transparency, consistency, and credibility for assessing and reporting the water footprint. ISO 14046 is an international standard that defines principles, requirements, and guidelines for conducting and reporting a water footprint assessment. For 4 years, third party verification studies carried out successfully, and since then each year including 2020, ÇİMSA has been awarded ISO 14046 Water Footprint Certificate. ÇİMSA have a standardized system for monitoring the water consumption and discharged wastewater, also to ensure the quality of wastewater discharged. This is achieved by ISO 14046 Certification and Çimsa the first company in the Turkish cement sector. One of the leading actors of the Turkish industry, as a corporate conscious company, ÇİMSA runs important projects in its plants in the area of water as well. The quantitative target of Çimsa about water is a 40% decrease in water consumption.

W0.2

(W0.2) State the start and end date of the year for which you are reporting data.

	Start date	End date
Reporting year	January 1 2020	December 31 2020

W0.3

(W0.3) Select the countries/areas for which you will be supplying data.

Turkey

W0.4

(W0.4) Select the currency used for all financial information disclosed throughout your response.

TRY

W0.5

(W0.5) Select the option that best describes the reporting boundary for companies, entities, or groups for which water impacts on your business are being reported.

Companies, entities or groups over which operational control is exercised

W0.6

(W0.6) Within this boundary, are there any geographies, facilities, water aspects, or other exclusions from your disclosure?

Yes

W0.6a

(W0.6a) Please report the exclusions.

Exclusion	Please explain
Ready mixed concrete	Cement and ready-mixed concrete are 2 different business lines in Çimsa. As per revenues, cement is relevant than ready-mixed concrete. The ready-mixed concrete business line is
business line is excluded.	excluded however it is planned to be reported in the next years and in the ready-mixed concrete business line the water data is strictly followed.

W1. Current state

CDP

Page

2

of 29

W1.1

(W1.1) Rate the importance (current and future) of water quality and water quantity to the success of your business.

	Direct use	Indirect	Please explain
	importance	use
	rating	importance
		rating
Sufficient	Not very	Neutral	The quality of water used during the process is not crucial as not incorporated into products. Water is mainly necessary for cooling mechanical equipment and kiln exhaust
amounts of	important		gas conditioning for cooling in the process and for domestic usage and WASH. While white cement production requires more water, thus the quantity of water is important.
good			Water is important both for the customers using Çimsa products as the products require water and for production, as cement requires water to chemically react and function
quality			or to be used in cement-based other products. The need for water for the upstream value chain is limited. In the near future, as we believe water will be a more valuable
freshwater			asset and water focus will increase, we started to direct our focus on water to increase water efficiency and dependency. Similarly, the importance of indirect use will
available			increase. In the WHR (Waste Heat Recovery) unit at the Mersin plant, water quality is important. Water is treated through the membrane filter to prevent corrosion in pipes of
for use			the Boiler system before usage. Thus, we are aware of the importance of having sufficient amounts of water in expected quality water for our operations.
Sufficient	Important	Neutral	The main water consumption during the processes is in the cooling process. The treated domestic wastewater is re-used in our process for cooling exhaust gases in Eskişehir
amounts of			Plant since 2015, in Kayseri Plant since 2016 May and Afyon Plant since 2018. Using more recycled water will result in reducing water consumption and dependency on
recycled,			water. As we are committed to the reduction of water both for direct and indirect usage purposes and increasing usage of recycled water, we are planning to apply this
brackish			methodology for all of our plants to decrease of usage freshwater from groundwater. On the other hand; the artificial lake in Eskişehir plant, founded on the migration route of
and/or			birds, during immigration, birds use drinking water from this lake.
produced
water
available
for use

W1.2

(W1.2) Across all your operations, what proportion of the following water aspects are regularly measured and monitored?

	% of	Please explain
	sites/facilities/operations
Water withdrawals -	100%	We apply the "ISO 14046 Water footprint -- Principles, requirements, and guidelines" standard, and the water footprint monitoring system is improved as a result
total volumes		of ISO 14046 implementation. 100% of water withdrawal is measured. Water withdrawals from wells are monitored continuously by the flow meters and recorded
		to the "Well Meter Index Reading Form" monthly at each plant. The data is monitored monthly and consolidated by the Environment and Sustainability
		department. We have usage permits for all of our groundwater wells from local governance. Water withdrawals from municipal water are invoiced based on flow
		meter readings monthly.
Water withdrawals -	100%	In Mersin and Ankara Plants, both well and municipal waters are used. In Eskişehir, Kayseri, Niğde, and Afyon Plants water are supplied from only wells. 100%
volumes by source		of water withdrawal is measured. %99 of total withdrawal water is supplied from groundwater wells which are monitored by flow meters, the rest of it is supplied
		from municipal water that is invoiced based on flow meter readings.
Entrained water
associated with your
metals & mining
sector activities - total
volumes [only metals
and mining sector]
Produced water
associated with your
oil & gas sector
activities - total
volumes [only oil and
gas sector]
Water withdrawals	100%	There is no discharge in Eskişehir, Kayseri, and Afyon Plants since all wastewater is reused at the gas conditioning towers. Mersin plant's treated wastewater is
quality		discharged into the dry river in line with the Discharge Permission Certificate. Niğde plant's domestic wastewater are connected to the sewage treatment plant.
		Ankara plant's domestic wastewater are transporting to the municipal wastewater treatment plant with a sewage truck. In Mersin, bimonthly, treated wastewater is
		analyzed periodically by an accredited laboratory to comply with Water Pollution Control Regulation. Total Suspended Solids (TSS), Biochemical Oxygen
		Demand (BOD), Chemical Oxygen Demand (COD), and pH parameters are determined as pollutant parameters by the Water Pollution Control Regulation. All
		related quality parameters are monitored since only Mersin Plant's wastewater is discharged to the receiving body.
Water discharges -	76-99	The discharged water in the cement sector consists of only domestic water usage as the process water (cooling purposes) is evaporated. Therefore, discharges
total volumes		volume is estimated according to the number of employees for Mersin and Ankara facilities. The specific discharge volume is accepted 60 liters/day per person
		which is based on İller Bank Technical Specification. All assumptions are verified and found acceptable by the third-party verification institution. For Niğde Plant,
		wastewater is discharged to the municipal wastewater treatment plant and monitored through flow meters and invoices. The data is consolidated by the
		Environment and Sustainability department. 78% of discharged water is monitored through meters and invoices.
Water discharges -	100%	There is no discharge in Eskişehir, Kayseri, and Afyon Plants since all wastewaters are reused at the gas conditioning towers. Mersin plant's treated wastewater
volumes by		is discharged into the dry river in line with the Discharge Permission Certificate. Niğde and Ankara plant's domestic wastewater are transporting to the municipal
destination		wastewater treatment plant with sewage truck.
Water discharges -	100%	There is no discharge in Eskişehir, Kayseri, and Afyon Plants. In Mersin Plant, wastewater is treated by the biological wastewater treatment method which
volumes by treatment		corresponds to 49% of total discharged water. 51% of total wastewater is connected to the municipal wastewater treatment facility through the sewerage system.
method
Water discharge	100%	Bimonthly, 47% of the total treated wastewater is analyzed periodically by an accredited laboratory to comply with the Turkish Water Pollution Control
quality - by standard		Regulation. BOD, COD, TSS, and pH parameters were also analyzed. The remaining wastewater which is 53% of total discharged water is directly connected to
effluent parameters		the municipal wastewater treatment facility.
Water discharge	100%	The data is monitored monthly and consolidated by the Environment and Sustainability department. We measure discharge quality data as per the local
quality - temperature		regulations. If it is required by the regulation, the temperature of discharge is monitored.
Water consumption -	76-99	The water consumption is equal to the difference between the withdrawal and the discharge. In our company, water consumption includes total water evaporated
total volume		for cooling purposes. The water consumption is based on wells and municipal water which are already measured by the flow meters. In Afyon Plant, we have
		several sub-meters measuring water consumption of every process such as cooling, raw mill, boiler. As a short-term target, we are planning to install flow meters
		in the Mersin plant to measure continuously product based water consumption. We aim to measure product-based water consumption in Mersin, Eskişehir, and
		Niğde plants as a long-term target.
Water	100%	In our process, the main water consumption is in the cooling process. The treated domestic wastewater is reused in our process for cooling exhaust gases in
recycled/reused		Eskişehir, Kayseri, and Afyon Plants. The reused wastewater amount is monitored monthly.
The provision of fully-	100%	The health and safety of all workers is the most important issue for our company and all precautions are taken for workers' health and safety. Therefore,
functioning, safely		hygienic water is provided to all workers for domestic water usage. The workers are able to have clean drinking water at 100% of all sites.
managed WASH
services to all workers

CDP

Page

3

of 29

W1.2b

(W1.2b) What are the total volumes of water withdrawn, discharged, and consumed across all your operations, and how do these volumes compare to the previous reporting year?

	Volume	Comparison	Please explain
	(megaliters/year)	with
		previous
		reporting
		year
Total	2405.93	Much higher	The total withdrawn water amount is increased by 44% compared to the previous year. Due to the increase in kiln operating times in 2020, the determined water use
withdrawals			increased in parallel with the clinker production amount. In addition, with the hygiene measures taken due to the Covid-19 pandemic conditions in 2020, water
			consumption for the personal cleaning of the space and for employees increased. In this report, our threshold for "much higher" and "much lower" is 20%.
Total	48.26	Much higher	The total discharged water amount is increased by 48% compared to the previous year. The total discharged water amount is increased depending on the withdrawn
discharges			water. In this report, our threshold for "much higher" and "much lower" is 20%.
Total	2357.67	Much higher	The total consumption of water amount is increased by 44% compared to the previous year. Due to the increase in kiln operating times in 2020, the determined water
consumption			use increased in parallel with the clinker production amount. In addition, with the hygiene measures taken due to the Covid-19 pandemic conditions in 2020, water
			consumption for the personal cleaning of the space and for employees increased. In this report, our threshold for "much higher" and "much lower" is 20%.

W1.2d

(W1.2d) Indicate whether water is withdrawn from areas with water stress and provide the proportion.

	Withdrawals	%	Comparison	Identification	Please explain
	are from	withdrawn	with	tool
	areas with	from	previous
	water stress	areas with	reporting
		water	year
		stress
Row	Yes	76-99	About the	WRI	We have production sites on four different basins: East Mediterranean Basin, Sakarya Basin, Seyhan Basin, and Akarçay Basin. The share of
1			same	Aqueduct	withdrawal water from basins is as follows: 54% of water is withdrawal from the East Mediterranean Basin, 34% of water is withdrawal from the
					Sakarya Basin, 9% of water is withdrawal from the Seyhan Basin and 6% of water is withdrawal from Akarçay Basin. We define water stress by
					applying the WRI Aqueduct tool. The coordinates of each production site are entered into the tool and water stress is analyzed through the WRI
					Aqueduct Water Risk Atlas. The risk is defined as Extremely High (>80%) for all basins which shows that our operations are located in water-stressed
					areas which are the same as the previous year.

W1.2h

(W1.2h) Provide total water withdrawal data by source.

	Relevance	Volume	Comparison	Please explain
		(megaliters/year)	with previous
			reporting year
Fresh surface water, including	Not		<>	Fresh surface water is not withdrawal.
rainwater, water from wetlands,	relevant		Applicable>
rivers, and lakes
Brackish surface water/Seawater	Not		<>	Brackish surface water or seawater is not withdrawal.
	relevant		Applicable>
Groundwater - renewable	Not		<>	The renewable groundwater is not withdrawal.
	relevant		Applicable>
Groundwater - non-renewable	Relevant	2377.66	Much higher	Total withdrawn water from wells is increased by 43% compared to the previous year. Due to the increase in kiln operating times
				in 2020, the determined water use increased in parallel with the clinker production amount. In this report, our threshold for "much
				higher" and "much lower" is 20%.
Produced/Entrained water	Not		<>	The wastewater is treated and reused for cooling in our plants. However, in line with the CDP explanation, this water is not
	relevant		Applicable>	counted as produced water.
Third party sources	Relevant	28.27	Much higher	Total withdrawn municipal water is increased compared to the previous year. With the hygiene measures taken due to the
				Covid-19 pandemic conditions in 2020, water consumption for the personal cleaning of the space and for employees increased.
				In this report, our threshold for "much higher" and "much lower" is 20%.

W1.2i

CDP

Page

4

of 29

(W1.2i) Provide total water discharge data by destination.

	Relevance	Volume	Comparison	Please explain
		(megaliters/year)	with previous
			reporting year
Fresh surface	Relevant	14.62	Lower	Mersin plant's treated wastewater is discharged into the dry river. The discharged water to dry river is decreased by 4% compared to the previous
water				year. In this report, our threshold for "higher" and "lower" is between 4% and 19%.
Brackish	Not		<>	Our wastewater is not discharged to any brackish surface water or seawater.
surface	relevant		Applicable>
water/seawater
Groundwater	Not		<>	Our wastewater is not discharged to any groundwater.
	relevant		Applicable>
Third-party	Relevant	33.64	Much higher	The total discharged water is increased compared to the previous year since the amount of withdrawal water is increased compared to the previous
destinations				year due to the hygiene measures taken due to the Covid-19 pandemic conditions in 2020. Water consumption for the personal cleaning of the
				space and for employees increased. In this report, our threshold for "much higher" and "much lower" is 20%.

W1.2j

(W1.2j) Within your direct operations, indicate the highest level(s) to which you treat your discharge.

	Relevance	Volume	Comparison of	% of your	Please explain
	of	(megaliters/year)	treated volume	sites/facilities/operations
	treatment		with previous	this volume applies to
	level to		reporting year
	discharge
Tertiary	Not		<>		We don't have any tertiary treatment facility.
treatment	relevant		Applicable>
Secondary	Relevant	20.26	Higher	11-20	In Mersin Plant, wastewater is treated by the biological wastewater treatment method. The figure is increased by 14%
treatment					compared to the previous year. In this report, our threshold for "higher" and "lower" is between 4% and 19%.
Primary	Not		<>		We don't have any primary treatment facility.
treatment only	relevant		Applicable>
Discharge to	Not		<>		The water is not discharged to the natural environment without treatment.
the natural	relevant		Applicable>
environment
without
treatment
Discharge to a	Relevant	28	Higher	41-50	In the Istanbul Headquarters office, wastewater is transferred to the municipal wastewater treatment plant through the
third party					sewerage system. Niğde and Ankara plant's domestic wastewater are transporting to the municipal wastewater
without					treatment plant with sewage truck. The total amount of discharged water to the municipality wastewater treatment plant
treatment					is increased by 34% compared to the previous year. In this report, our threshold for "much higher" and "much lower" is
					20%.
Other	Not		<>
	relevant		Applicable>

W1.4

(W1.4) Do you engage with your value chain on water-related issues?

Yes, our suppliers

Yes, our customers or other value chain partners

W1.4a

(W1.4a) What proportion of suppliers do you request to report on their water use, risks and/or management information and what proportion of your procurement spend does this represent?

Row 1

• of suppliers by number
  1-25
• of total procurement spend
  1-25

Rationale for this coverage

The life cycle approach starts with supplier engagement for Cimsa. ISO 14001 Environmental Management System applied in Cimsa since 2008 which creates maturity an environmental point of view. Third-party and internal audits covers our stakeholder engagement especially the supply chain. Supplier contracts items are reviewed in terms of environmental requirements and all feedback's are evaluated for improvement of the system. Where available, water data's are requesting from suppliers and if the water management system is not applying, our teams lead them about the application of ISO 14046. All Supplier contracts cover GCCA supply chain 10 principles which are related to Human Rights, Labour, Environment, Anti-Corruption. Besides getting data within the supply chain, Cimsa focus to share its water management and sustainability know-how. Through surveys, online and offline meetings information's are sharing to grow a strong and focused supply chain.

Impact of the engagement and measures of success

The engagement with our suppliers provides to work with a similar vision of companies and create a strong and sustainable supply chain. At the know-how sharing level, the first objective was creating the same understanding of water management and sustainability with our supply chain. Our critical suppliers in terms of water and sustainability are working in ready-mix concrete and aggregates. They are started to collect the data for water and in the next years, they will be obliged to present their water consumptions to be Cimsa suppliers. This engagement caused to monitor the suppliers more closely on their costs.

Comment

CDP

Page

5

of 29