Bizim Toptan Satis Magazalari : SUSTAINABILITY REPORT 2022

BİZİM TOPTAN

SUSTAINABILITY REPORT 2022

Introduction	Our	Our Sustainability	Working for the Future	Growing Stronger	Inspiring the Future with Purpose	Annexes	1
	Story	Story	of the Environment	with Stakeholders	Driven Products and Business Models

Contents

Introduction	Our Sustainability Story	Growing Stronger with Stakeholders	Inspiring the Future with Purpose Driven
02	About the Report	14	Our Sustainability Strategy	34	Employees	Products and Business Models
03	CEO Message		16	Outlook on Global and Sectoral Trends		34	Diversity, Inclusion and Equity	45	Food and Product Safety
				19	Materiality Analysis		35	Talent Management and Development	46	Customer Experience and Transparency
Our Story		22	Communication with Stakeholders		39	Employee Health, Safety and		46 Diverse and Wide Product Range
06	About Us	23	Sustainability Governance Model			Wellbeing		48 Responsible Marketing and Labeling
	07	Financial Performance				40	Supply Chain		49 Customer Relation and Satisfaction
	08	Highlights in 2022	Working for the Future of the Environment		40	Responsible Procurement	52	Innovation and Digitalization
09	Our Value Chain	26	Carbon Emission Reduction and Energy	41	Society	53	Data Security and Privacy
10	Our Corporate Governance Approach		Efficiency		41	SEÇ Markets
	13	Our Business Ethics Approach	28	Waste Management and Plastic		43	Social Responsibility	Annexes
	13	Risk Management		29	Sustainable Packaging and Packaging				55	Annex-1: Performance Indicators
					Reduction Activities					55	Environmental Performance Indicators
				30	Reducing Plastic Use					55	Social Performance Indicators
				31	Prevention of Food Waste and Waste				58	Annex-2: Awards
			32	Water Consumption and Efficient Use				58	Annex-3: Memberships and Associations
									59	Annex-4: Reporting Guidance
									62	Annex-5: Independent Assurance Report
									63	Annex-6: GRI Index Table
									68	Annex-7: Contact

Introduction	Our	Our Sustainability	Working for the Future	Growing Stronger	Inspiring the Future with Purpose	Annexes	2
	Story	Story	of the Environment	with Stakeholders	Driven Products and Business Models

About the Report

As Bizim Toptan Satış Mağazaları A.Ş., we adopt Yıldız Holding's "This is Our World" sustainability approach and share our environmental, social and governance performance, projects and targets through our sustainability reports every year. With this report, we aim to inform all our stakeholders in the most transparent manner within the scope of our sustainability journey.

The information in our report covers all our operations for the period January 1-December 31, 2022. We have prepared our report in accordance with the GRI Standards 2021 version, which was updated last year. You can easily find the sections that include information on standards by following the relevant tables in the GRI Content Index

in the "Annexes" section at the end of our report. At the same time, in the "Annexes" section, you can review the detailed version of the performance indicators related to our material issues, which we have included in our report, going back three years. Throughout our report, we include a mapping of our contribution to the Sustainable Development Goals (SDGs) published by the United Nations in 2015.

We care that our sustainability report is accessible to all our stakeholders and that we receive feedback and ideas from our stakeholders about our report. You can access our report at https://www.bizimtoptan.com. tr/s/surdurulebilirlik and send your questions and comments about the report to the e-mail address "[e-mail]" .

Independent Assurance

Within the scope of our report, we receive independent assurance services for environmental performance indicators such as energy and water consumption, greenhouse gas emissions and waste amount, number of employees by gender, category and working hours, number of employees leaving by gender and age, distribution of employees in senior management bodies by age, number of unionized employees, employee turnover rate, OHS performance and OHS trainings social performance indicators. In this way, we ensure the accuracy of our data and work to conduct reliable trend analysis. You can find our Independent Assurance statement in the Annexes section of our report.

Introduction	Our	Our Sustainability	Working for the Future	Growing Stronger	Inspiring the Future with Purpose	Annexes	3
	Story	Story	of the Environment	with Stakeholders	Driven Products and Business Models

CEO Message	with a focus on sustainability? How would
	If you need to summarize the year 2022, what
	were the issues that you would emphasize
	you evaluate 2022 for Bizim Toptan in light of
	these issues?

We made performance management processes much more efficient by transitioning to the OKR (Objectives and Key Results) system, a strategic management tool for our employees, one of our most important stakeholders.

As for our employees, we focus on employee satisfaction, talent management and development, employee health, safety and well-being, and diversity, inclusion and equality. We have an understanding that our employees can develop themselves in many different ways through

We view sustainability as an integral part of our business; we adopt the "Zero Waste Company" model by following the "This World Is Ours" approach of Yıldız Holding, to which we are affiliated.

2022 was a successful year in which we progressed towards our strategic goals. While expanding

our operations with our store and warehouse investments and carrying out our activities with the awareness of our responsibilities towards our world, all living creatures and future generations, we focused on our sustainability goals while. We view sustainability as an integral part of our business; we adopt the "Zero Waste Company" model by following the "This World Is Ours" approach of Yıldız Holding, to which we are affiliated.

With our sustainability strategy, we contribute to the 'Sustainable Development Goals' targeted to be achieved by the United Nations by 2030. Working with this focus, we will continue to observe society, environment and business ethics responsibilities at the highest level in all our activities.

In 2022, as part of our efforts to switch to renewable energy, we started to meet all the electricity needed by our store with the Solar Energy System installed on the roof of our Gebze store. We have created an action plan to reduce product packaging and are working on this issue. We made a significant contribution to sustainable agriculture with our Ülker Bizim Topraklardan pulses and rice series by producing with local producers and local seeds.

As part of the measures we have taken to reduce our carbon footprint, we plan to reduce our energy consumption and waste, and increase recycling.

We adopt a responsible supply chain management that includes many factors such as the selection and auditing of suppliers and optimization of the distribution network. We prioritize responsible purchasing for both our own branded products and all other products we offer for sale within Bizim Toptan, and we raise awareness of our suppliers in this regard.

Seç Market, where we combine traditional artisan culture with a modern grocery store approach and supply products to our business partner dealers, has grown thanks to the satisfaction of both artisans and customers, exceeding 2,400 stores across Türkiye this year.

We know that your sustainability strategy is based on three focus areas. What steps are Bizim Toptan taking and what do you aim to achieve in this strategy, which consists of Growing Stronger with Stakeholders, Working for the Future of the Environment and Inspiring the Future with Purpose-Driven Products and Business Models?

In every step we take, we aim to create long-term and sustainable value for our stakeholders. We set our goals under the three focus areas of our sustainability strategy: "Working for the Future of the Environment", "Growing Stronger with Stakeholders" and "Inspiring the Future with Purpose Driven Products and Business Models". We act within the framework of these focuses in all our activities as well as in our relations with all our stakeholders. Guided by our materiality analysis, which we renewed this year, we prioritize circular economy, waste management and fight against plastic, energy efficiency and carbon emission reduction under our environmental focus. In this context, we focus on the efficient use of packaging materials, projects supporting the reduction of carbon footprint and responsible production. We carry out various projects to protect nature and use resources sustainably. These projects include waste management, water saving and energy efficiency. Within the framework of our zero waste company principles, we are developing plans to gradually switch to renewable energy in our stores and warehouses across the country.

employee trainings, that we listen to their voices through open communication tools and that we develop our business environment for them.

At the same time, we work in interaction with all our stakeholder groups, especially our customers, suppliers and employees, and aim to grow stronger by growing together. We support social and economic development through our value chain.

Within the scope of Growing Stronger with Stakeholders, you state that one of your most important stakeholders is your employees. What were the most prominent issues for your employees in 2022?

The health, happiness and safety of our employees are among our top priorities. We create an equitable and inclusive work environment for our employees and organize trainings for their personal and professional development. Within the scope of our gender equality goal, we increased the number of female employees at all levels in 2022 and we will continue to work with this goal. Again in 2022, we switched to the OKR (Objectives and Key Results) system in the performance management of all our white-collar employees at the head office, making our performance management process much more efficient and strategic. Throughout the year, we receive feedback from our employees through different tools and methods and work on the points where they expect improvement.

As part of our Be Raise talent management approach, we launched a program called Be Raise Campüs for young talents to start working at Bizim Toptan. Through this program, we offer internship and job opportunities to young people and share our experiences with them. In 2022, we hired 9 young talents in the white-collar category under this program.

Hüseyin Balcı

CEO

Introduction	Our	Our Sustainability	Working for the Future	Growing Stronger	Inspiring the Future with Purpose	Annexes	4
	Story	Story	of the Environment	with Stakeholders	Driven Products and Business Models

CEO Message

Within the framework of our zero waste company principles, we are developing plans to gradually switch to renewable energy in our stores and warehouses across the country.

			p
		W
k
264	Capacity
Installed		System
Energy
Solar

We installed a solar energy system with an installed capacity of 264 kWp, covering an area of 1,288 square meters, on the roof of our store in Gebze.

We take every step to ensure employee health, safety and welfare. With our goal of zero occupational accidents, we take the necessary measures for the occupational health and safety of our employees at all locations of our company and provide Occupational Health and Safety Training to all our employees throughout the year. Thanks to all these efforts, the number of occupational accidents decreased by 25% compared to the previous year. We analyze the risks in the supply chain and take these risks under control by managing them through a centralized system we launched in 2017. Thanks to our crisis plans and drills for disaster management, we, as Bizim Toptan, were able to remain healthy and strong and continue our activities in emergencies, including the recent earthquake disaster.

Working for the Future of the Environment is another area of focus. In this context, you have a plan to gradually switch to renewable energy as of 2022. Considering this important step, can we hear from you about your goals and activities that have an environmental impact?

As part of our 2022 plan to gradually transition to renewable energy, we took our first step with a 1,288 square meter solar energy system with an installed capacity of 264 kWp on the roof of our store in Gebze. In this way, we obtain all the energy needs of our store from renewable sources. Thanks to this system, we are pleased that we will be able to reduce our carbon footprint and prevent the greenhouse gas that approximately 6,300 trees can clean in a year.

In 2022, we also carried out infrastructure improvements in our air conditioning and lighting systems in our stores and route optimization in our distribution processes. Thanks to our route optimization efforts, we saved 437,000 km on the road last year and prevented 63 tons of carbon emissions.

We are working to protect the soil, our most basic source of life, to carry out circular production models and to reduce the use of plastic and other packaging through responsible packaging efforts. We aim to reduce our environmental impact and contribute to the protection of nature. Since 2019, we have been systematically managing our environmental impact at all Bizim Toptan stores and our headquarters in accordance with ISO 14001:2015 Environmental Management System Certification standards.

As part of our efforts to prevent food waste, we ensure that products that have lost their sales qualities in our stores are transformed into animal feed raw materials. In 2022, we contributed to the conversion of 8,089 kg of products into animal feed by transmitting them to Rapid Recycling through the relevant channels, preventing food waste and reducing greenhouse gas emissions.

On the other hand, we have recycling projects, waste reduction programs and zero waste targets in waste management. Currently, 136 of our stores have zero waste certificates. We also focus on reducing environmental impact in our supply chain. In this context, we are working on sustainable supply chain management.

Finally, we would like to know how you define success for Bizim Toptan.

We measure success not only by our financial performance, but also by our sustainability activities and our potential to create social benefit. For

us, success can be defined as a combination of many elements such as achieving financial and operational targets, maintaining our sustainability approach, and increasing customer and employee satisfaction.

The company's sustainable success depends, of course, primarily on healthy growth and achieving long-term profitability targets. However, it is also very important for us to adopt a sustainable value approach, reduce our environmental impact, and benefit our stakeholders and society on the road to success.

Responding to the needs of our customers in the best way possible, ensuring customer satisfaction and building long-term relationships with our customers based on loyalty and trust are among our top priorities. In this context, we always offer innovative services to our customers, perfecting their shopping experience and our service quality. With the importance we attach to e-commerce and digitalization, we are also expanding our infrastructure investments in this area.

The satisfaction of our employees is also an integral element in the recipe of success. We have high standards in occupational health and safety, training and development opportunities, and employee participation in decision-making processes. The fact that our employees act in the light of our values in all our activities, and at the same time feel that they work in an organization where they are valued individually and offered career and personal development opportunities, makes our work more efficient and effective.

We strongly believe that our principle of a waste-free company and our understanding of sustainability, which we carefully adopt as a guide, will increase our success graph within the framework of our goals as Bizim Toptan.