ESG DAY
27 October 2023
0102
Sustainability Performance,
Roadmap & Targets
03
Portfolio
Transformation
Towards Sustainable Q&A
New Economy
ESG DAY PRESENTATION
Disclaimer
The information and opinions contained in this document have been compiled by Hacı Ömer Sabancı Holding A.Ş. ("Holding") from sources believed to be reliable and in good faith, but no representation or warranty, expressed or implied, is made as to their accuracy, completeness or correctness. No undue reliance may be placed for any purposes whatsoever on the information contained in this presentation or on its completeness, accuracy or fairness. This document contains forward-looking statements by using such words as "may", "will", "expect", "believe", "plan" and other similar terminology that reflect the Holding management's current views, expectations, assumptions and forecasts with respect to certain future events. As the actual performance of the companies may be affected by risks and uncertainties, all opinions, information and estimates contained in this document constitute the Holding's current judgement and are subject to change, update, amend, supplement or otherwise alter without notice. Although it is believed that the information and analysis are correct and expectations reflected in this document are reasonable, they may be affected by a variety of variables and changes in underlying assumptions that could cause actual results to differ materially. Holding does not undertake any obligation, and disclaims any duty to update or revise any forward looking statements, whether as a result of new information or future events. Neither this document nor the information contained within can construe any investment advice, invitation or an offer to buy or sell Holding and/or Its group companies' shares. Holding cannot guarantee that the securities described in this document constitute a suitable investment for all investors and nothing shall be taken as an inducement to any person to invest in or otherwise deal with any shares of Holding and its group companies. The information contained in this document is published for the assistance of recipients, but is not to be relied upon as authoritative or taken in substitution for the exercise of judgment by any recipient. You must not distribute the information in this document to, or cause it to be used by, any person or entity in a place where its distribution or use would be unlawful. Neither Holding, its board of directors, directors, managers, nor any of Its employees shall have any liability whatsoever for any direct or consequential loss arising from any use of this document or its contents.
01
/03
Portfolio
Transformation
PORTFOLIO TRANSFORMATION
Our growth platforms are geared towards many of the SDGs, fulfilling our 'Higher Purpose'…
Energy and Climate
Advanced Materials
Digital
enabling decarbonization of physical and
digital economy, powering the additional demand without CO2 and negative impacts on nature
becoming the next net-zero frontier to transform energy, mobility and built environment, decoupling growth and material use
fostering innovation, efficiency and access to information, contributing to the faster and more effective achievement of the SDGs
PORTFOLIO TRANSFORMATION
…enabling us to capitalize on the growing demand on a sustainable economy…
Energy and Climate
Advanced Materials
Digital
$6.5tn
low CO2 replacing high CO2 assets
75%
focusing three key areas
2.5x
faster growth in digital than physical world
annual spending on low-CO2 assets and enabling structure until 2050 in NZ scenario, replacing the spending on high emitting sectors*
of total spending worth 6.5 tn $ on pyhsical assets to transform mobility, power, buildings*
faster growth over the previous ten years than the GDP of the physical world **
7.5%
of GDP spent on NZ transformation
$648bn
supported by "go" policies from US and EU
>50%
of nominal GDP digitally transformed
of GDP spent on NZ rising from 6.8% of GDP today to 9% of GDP between 2026 and 2030 before falling*
commitment only from EU GDIP and US IRA as part of new industrial strategies
digitally transformed enterprises accounts more than half of the nominal GDP in 2023***
*Under the NGFS Net Zero (NZ) 2050 scenario, source: McKinsey, The economic transformation: What would change in the net-zero transition January 25, 2022 | Article
**The World Bank estimates that the digital economy contributes to more than 15% of global gross domestic product (GDP), and in the past decade it has been growing at two and a half times faster than physical world GDP.
***Source: Statista, 2022
EU GDIP: EU's Green Deal Industrial Plan. US IRA: US Inflation Reduction Act.
PORTFOLIO TRANSFORMATION
…and we are acting through capital allocation criteria targeting high-growth global mega trends
in sustainability
Doubling CAPEX* to accelerate growth…
…with >75%* of the CAPEX spent
for new economy in 2022-23
…in line with mega trends and our 2050 net zero goal
Digital Tech
>2x
~14.0%
Core
2%
Advanced
Materials Tech
10%
7.3%
10.3%
6.6%
23%
New Economy
77%
Energy & Climate Tech
88%
2020 | 2021 | 2022 Mid-term Guidance |
*Non-bank, as a percentage of revenue | * Non-bank |
02
/03
Sustainability
Performance
NATURE
A lower carbon, more sustainable portfolio
GHG emissions (Scope 1+2, Mt)
GHG emissions (Scope 3, Mt)
Renewable Electricity Usage*
CO2-free electricity production**
TL 200 bn Sustainable Finance Pledge***
SDG innovation
USD 5 bn SDG-related investment Pledge
From planning… | To action and transformation… | |||
2020 | 2021 | 2022 | 2030 | 2050 |
10.10 | 11.20 | 9.95 | 6.49 | Net Zero |
11.21 | 11.59 | 10.29 | 6.72 | Net Zero |
- | - | 27% | ≥80% | |
42% | 43.7% | 45.5% | 78.5% | 100% |
8.2% | 13.5% | 30% | 100% | |
44% | 51% | 53% | ≥70% | |
- | - | 10% | 100% |
Sabancı Holding's GHG emissions have been calculated by using the equity share approach in accordance with the Greenhouse Gas Protocol. Accordingly, Sabancı Holding accounts for GHG emissions from operations according to its share of equity in the operation. *Assumptions based on analysis conducted in 2022
**Installed capacity
***Committed by Akbank, in addition to their sustainable investment funds commitment reaching TL 15 billion until 2030.
NATURE
15 key initiatives will take us to our 2030 ambition on decarbonization
List of Decarbonization Initiatives
GHG Emissions Trend
Renewable electricity usage / generation
Fleet EV transformation
Grid decarbonization
Theft & Loss reduction
SF6 recovery
Switching away from CO2 intensive fuels
Alternative Cooling gas
Raw Material Substitution
Alternative
Fuels
Clinker Substitution
Electrification of Kiln/Boiler
Blending of
Renewable Natural
Gas (RNG)
Heat pumps
Bio Diesel blend
Product/Network Optimization
tCO2e equiv. | Scope 1+2 | Scope 3 | |
11,300,000 | |||
10,300,000 | |||
9,300,000 | |||
8,300,000 | |||
7,300,000 | |||
6,300,000 | |||
2020 2021 2022 | 2025 | 2030 |
Scope 1+2 Target
Start of decarbonisation program
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Disclaimer
Haci Ömer Sabanci Holding AS published this content on 27 October 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 27 October 2023 15:40:52 UTC.