Sustainability Risks, Opportunities, and Trends

Aromsa’s sustainability risks, opportunities, and trends are summarized in the table below.

CATEGORY PHYSICAL RISKS DEFINITION HOW DOES AROMSA MANAGE THIS RISK?
Environmental Water Scarcity Due to climate change, increasing water demand, and water scarcity, the depletion of water resources may adversely affect both industrial water use and agricultural irrigation. Fluctuations in water quantity and quality can cause disruptions in production processes and, in water-dependent sectors, lead to increased costs and supply chain risks. To safeguard water supply security, we implement rainwater harvesting and grey water recycling practices at our facilities and collaborate with our suppliers for alternative water sourcing. To mitigate the potential impacts of water scarcity on our agriculturally sourced raw materials, we closely monitor our supply chain and ensure production continuity through process improvements focused on water efficiency.
Environmental Water Resources Management Depletion of water resources, uncertainties in access, and changes in water quality can pose a significant physical risk to production processes and water-dependent operations. Drought may prevent the provision of water in the desired quantity and quality from existing sources, potentially resulting in production losses or quality fluctuations. To safeguard water supply security against drought and water scarcity, we source water from wells at two different locations and via tanker deliveries from our contracted supplier. Through our rainwater harvesting practice, we generate an alternative water source. Furthermore, once the treated water recovery project at the GOSB Wastewater Treatment Plant is commissioned, we plan to utilize this resource as an alternative water source. To mitigate the risk of changes in water quality, we select the most suitable alternative water source in terms of quality to ensure continuity in production and product quality.
Environmental Climate Change and Weather Events Events associated with climate change, such as increased temperature, extreme precipitation, drought, hurricanes and flooding, can pose physical risks to organizations. For example, the risk of facilities being exposed to flooding or fires. In case of excessive rainfall, we anticipate that our plant infrastructure may be damaged and our wastewater treatment plant load may increase. In this case, the loss of functionality of our treatment plant may cause us to stop production for a short period of time. We do not discharge directly to the receiving environment; we give our wastewater to the OSB facility without pre-treatment. In the event of such a climate hazard, we redirect the wastewater stored in our balancing tank to another facility using a vacuum truck, and if that is insufficient, we transfer it to the OSB Wastewater Treatment Plant. We also take into account the risk of lightning strikes. In such a case, damage to our facility and infrastructure may stop our production for a short period of time and cause environmental damage by failing to meet discharge criteria. We manage this risk by diverting the wastewater to alternative wastewater treatment facilities. We also have a lightning rod infrastructure in our facility. We are also prepared for the risk of fire caused by lightning strikes. In such a case, there may be loss of the raw materials we store and environmental pollution. We mitigate this risk through our existing fire suppression systems. A lightning rod located on a nearby building provides additional protection.
Environmental Weather and Climate Change Adaptation Factors associated with climate change, such as increasing temperature, extreme weather events, sea level rise, can affect organizations’ business processes, infrastructure, and supply chains. We conduct a significant part of our raw material supply chain via sea freight. We recognize that severe weather events, such as storms and tornadoes, can disrupt maritime transportation. Following supply disruptions experienced during the pandemic period, we increased our storage capacity and plan minimum inventory levels and lead times through SAP, with the objective of ensuring the uninterrupted continuity of our supply processes. We anticipate potential seasonal challenges in sourcing certain raw materials due to drought. Accordingly, we strengthen inventory planning and evaluate alternative sourcing and logistics options to safeguard supply security.
Environmental Risks Related to Food Security and Climate Change Climate change can have impacts on agricultural productivity, negatively affecting food supply and security. We anticipate that we may not be able to procure some raw materials at the desired quality due to climate change. With the experience we gained during the pandemic, we have increased our raw material storage quantities in preparation for such risks. We have alternative raw material and transportation options to ensure the continuity of our supply chain. To this end, we plan through SAP, taking into account our minimum stock levels and lead times, work on the use of alternative raw materials with our R&D department and create alternative suppliers for all our raw materials.
Environmental Environmental Pollution and Chemical Risks Industrial waste, chemical spills and environmental pollution can harm ecosystems and human health by affecting water, air, and soil quality. We are aware that spills and leaks during the storage of chemicals can cause environmental pollution. To prevent this risk, we have covered all our storage areas with impermeable floors and equipped them with industrial wastewater drains and absorbent materials. In addition, we ensure that our teams are prepared for every situation by periodically organizing drills in line with the emergency plans we have prepared.
Environmental Water Quality Issues Pollution, industrial waste, pesticides, and other environmental factors can reduce the quality of water resources. This can result in risks related to organizations’ water supply and use. Due to excessive rainfall and flooding, we anticipate that we may not be able to obtain water of the expected quality from our existing sources. We are aware that a sudden and unexpected change in water quality can lead to microbiological risks and financial losses. In such a case, to ensure the continuity of our production and product quality, we manage the process by choosing the most suitable one in terms of quality among our available alternative water sources.
Environmental Groundwater Contamination Industrial waste, chemicals, agricultural pesticides, and unsustainable groundwater extraction may lead to groundwater contamination, depletion of reserves, and risks to potable water supply and ecosystem health. Declines in groundwater levels and deteriorations in water quality can pose significant risks from both environmental and operational perspectives. We mitigate the risk of groundwater contamination by strengthening our waste management and chemical storage processes. We are implementing sustainable water management practices such as rainwater harvesting. By regularly analysing and monitoring groundwater reserves, we continuously track water quality and minimize the environmental impact of our operations by using resources cautiously.
Environmental Natural Disasters Türkiye’s location within a seismic zone, coupled with the increasing frequency of natural disasters such as extreme precipitation, floods and inundations, severe storms, and landslides, may give rise to significant physical risks, including damage to facility infrastructure, operational disruptions, and interruptions to critical services. Earthquakes can directly affect production, logistics, and supply chain processes due to structural damage and chemical spill risks, thereby weakening operational resilience. Within the scope of our emergency and crisis management procedures, we continue to maintain preparedness for earthquakes, floods, and severe weather events. We ensure the structural safety of our buildings by having their structural assessments conducted on a regular basis. We take preventive measures against potential chemical spills and leaks following an earthquake and promptly implement interventions to prevent any leakage from reaching the environment. Additionally, we aim to prevent operational disruptions through our business continuity plans tailored to disaster scenarios.
Environmental Floods and Flash Floods Floods and inundations caused by heavy rainfall, river overflows or sea level rise can adversely affect infrastructure and agricultural areas. We maintain an emergency action plan and crisis management procedures. In addition, we conduct regular maintenance, repair, and cleaning activities related to our infrastructure and, in the event of sudden and intense rainfall, take the necessary actions in coordination with the GOSB.
Environmental Soil Pollution Factors such as industrial waste, chemical use, spills, and leaks can cause soil pollution, which may negatively affect agricultural lands, ecosystems, and food security. The remediation and rehabilitation of contaminated sites can pose both physical and financial challenges. We implement robust waste and chemical management practices to prevent soil contamination. To reduce the risk of chemical spills and leaks, we use specially designed storage areas and conduct our transportation processes in full compliance with ADR regulations. By performing regular maintenance on our stack filters, we reduce soil impacts associated with emissions. We minimize environmental risk by directing our wastewater to the GOSB Wastewater Treatment Plant and regularly monitor water quality both in-house and in collaboration with GOSB. We implement preventive measures to preserve soil quality and avoid the need for rehabilitation.
Environmental Fire Risks Forest fires, industrial facility fires and other fire events may cause physical asset losses, ecosystem damage, and air pollution. In accordance with our facility-wide Emergency Plan, our top priority in the event of any incident is to minimize the impact on the environment. In this direction, we prevent fire extinguishing materials (powder, foam) used during the intervention or possible raw material and product leaks from entering rainwater and soil by using absorbent materials or vacuum trucks. Following the incident, we dispose of all affected materials in accordance with applicable legislation. In the event of any air pollution or leakage into the receiving environment, we promptly report the situation to the GOSB and the relevant Provincial Directorate of the Ministry of Environment, Urbanization, and Climate Change.
Environmental Air Pollution and Health Risks Industrial emissions, traffic-related pollution, and other atmospheric pollutants may degrade air quality, thereby creating significant risks for both human health and compliance with air quality regulations. Air pollution can have adverse effects on the health of employees and surrounding communities. We control emissions from our stacks by using modern filtration systems at our facilities. We conduct periodic emission measurements to verify filter efficiency and compliance with legal limits, including mandatory measurements every two years under the Regulation on Control of Industrial Air Pollution (SHKKY). Through these initiatives, we are fulfilling our commitment to reducing air pollution and ensuring full compliance with air quality standards.
Environmental Global Temperature Rise and the Temperature Gap Rising maximum temperatures, heatwaves, and especially increased indoor humidity levels can negatively impact employee health, indoor comfort, and equipment efficiency in production areas. Temperature differentials (day–night temperature variations) and high humidity can increase energy consumption, strain cooling systems, and raise operational costs. These conditions may also impact product quality, storage processes, and supply chain operations. In our facilities, we regularly review the capacity of our cooling systems and implement improvements to adapt to increasing temperature and humidity conditions. We implement control mechanisms in our storage areas to ensure product quality is not affected by heat waves. In addition, to ensure the health and safety of our employees, we conduct periodic health screenings and effectively utilize centralized cooling systems in office and production areas during the summer period to maintain indoor comfort.
Environmental Energy Efficiency and Sustainable Energy Insufficient energy efficiency and difficulties in transitioning to sustainable energy sources can increase dependence on energy sources and enlarge the carbon footprint. We continue to generate energy with existing SPPs. In the long term, we are planning a gradual transition to green energy.
Environmental Natural Resource Scarcity Disruptions to production processes and supply chains can be caused by a shortage or depletion of certain raw materials. We anticipate potential challenges in raw material sourcing and manage our processes to minimize these risks. Drawing on the resilience and experience we gained during the pandemic, we have updated our inventory policies. We have now expanded our raw material storage capacities and are implementing alternative solutions in our logistics processes. To this end, we plan through SAP, taking into account our minimum stock levels and lead times, work on the use of alternative raw materials with our R&D department and create alternative suppliers for all our raw materials.
Environmental Use of Natural Resources and Loss of Biodiversity Deforestation, unsustainable use of natural resources, overfishing, agricultural expansion, and other human activities can lead to ecosystem degradation and loss of biodiversity. Particularly for industries reliant on natural raw materials, biodiversity loss and pressure on natural resources may pose significant physical and operational risks, threatening supply security and ecosystem integrity. We prioritize the use of natural resources produced for industrial purposes and exercise due diligence in our raw material procurement processes to ensure that our suppliers hold internationally recognized sustainability certifications, such as RSPO (Roundtable on Sustainable Palm Oil) and Rainforest Alliance.
Environmental Recycling and Waste Management Challenges Inadequate waste management processes, recycling challenges and failure to handle waste effectively can increase environmental impacts. We collect all recyclable, hazardous and non-hazardous wastes separately and send them to licensed recycling and recovery companies. We also send non-recyclable household waste to licensed disposal companies.
Environmental Land Use Planning and Sustainable Urbanization Unsustainable land use planning and rapid urban expansion can threaten natural habitats and farmland. We conduct our operations in the Organized Industrial Zone.
Environmental Energy Disruptions Dependence on energy sources can pose physical risks in terms of energy interruptions, business continuity and operational reliability. Being located within GOSB allows us to directly leverage the region’s resource redundancy, as well as generator and UPS systems provided by the management. We reinforce our energy security through GOSB’s prioritized investments in energy equipment and capacity expansion. Within the scope of the maintenance and technical support guarantee provided by the regional administration, we consider the ability to resolve any potential malfunction within 24 hours or to ensure continuity through rental replacement as a safeguard of our operational continuity.
Environmental Energy Efficiency of Buildings High energy consumption can affect sustainability goals by reducing the energy efficiency of buildings. Within the Energy Management System, we conduct regular monitoring and improvement processes in our buildings to enhance energy efficiency and mitigate climate risks arising from energy consumption. We periodically monitor energy consumption across all production and administrative buildings and conduct efficiency analyses for heating, cooling, lighting, and process equipment. We optimize our energy performance through automation, insulation, and investments in efficient equipment, while remaining committed to our sustainability goals. In addition to our two operational LEED Platinum-certified buildings, we are designing our new building under construction according to environmentally friendly building standards and constructing it to achieve LEED certification.
Environmental Carbon Footprint and Carbon Market Risks Regulations on carbon emissions, carbon trading and carbon pricing can affect organizations’ carbon footprint management and financial position. For 2050, we have a net zero target.
Social Discrimination and Social Injustice Unequal distribution of environmental impacts can increase the risks of discrimination and social injustice. We mitigate the risk of inequality arising from environmental impacts by prioritizing policies that promote employee well-being and equal opportunity. We embed diversity and inclusion across all our human resources processes and adopt a zero-tolerance approach to discrimination and mistreatment. Under the leadership of the Equality, Diversity, and Inclusion Committee, established in 2022, we develop inclusive projects and raise employee awareness through human rights and ethics training.
Social Shareholder Expectations Risk In relation to sustainability, factors such as the expectations and demands of communities and employees, social media engagement and public pressure can influence organizations. We manage the expectations of communities and employees with transparency and accountability. We analyse stakeholder expectations through the Sustainability Committee and ensure transparency through reporting in accordance with GRI standards and two-way communication channels. We monitor employee satisfaction through surveys, feedback mechanisms, HR meetings, suggestion-complaint boxes and the ethics line, and continuously make improvements with a satisfaction rate of 83.2%. We utilize Aromsa.Net and Aromas TV in our internal communication processes. On the community side, we conduct satisfaction surveys, volunteer projects, and activities such as the Aromas Chamber Orchestra, while supporting the stakeholder ecosystem through Aromsa Academy.
Social Climate-Related Health Risks Factors linked to climate change, such as rising temperatures, air pollution, water scarcity, etc., can affect worker health and public health. We manage the risks of rising temperatures, air pollution and water scarcity with a focus on employee and community health. At our factories, we conduct regular industrial hygiene assessments and use emission controls to ensure VOCs, NOx, SOx, and particulate matter remain well within regulatory limits. We provide a safe working environment through ergonomic risk assessments and annually updated emergency plans. We focus on reducing water consumption, aiming to lower water intensity per unit of production by 10% by 2025. We manage wastewater through conservation measures and treatment systems. We conduct pesticide and food safety analyses in our TÜRKAK accredited Pesticide Laboratory, develop climate scenarios and environmental projects, and contribute to air quality by reducing our carbon emissions through SPP investments in line with our 2050 Net Zero target.
Social Health Problems Related to Water and Food Safety Contaminated water sources and foods may trigger health problems related to water and food safety. We control the risks that may arise from contaminated food and water sources in our holistic quality and food safety management with BRCGS, FSSC 22000, ISO 22000 and ISO 9001 standards, and monitor critical points with HACCP. We request pesticide, solvent, allergen and GMO analysis reports from suppliers and ensure safe raw materials through approved audits. In our TÜRKAK accredited laboratory, we conduct pesticide, ethylene oxide, acrylamide, ochratoxin and patulin analyses and provide full traceability from raw material to product with ERP. We process our wastewater in our pre-treatment facility and discharge it to the GOSB facility, ensuring compliance with the legislation through periodic analyses.
Social Epidemic Diseases/ Pandemic Risk Epidemic diseases and pandemic periods can directly affect employee health, workforce continuity, production planning, and supply chain operations, thereby weakening organizational resilience. Increased employee absenteeism due to the spread of infectious diseases can lead to disruptions in critical operational processes, delays in logistics, and capacity losses. In addition, national and international restrictions, travel limitations, or quarantine measures may create uncertainties in the supply of raw materials and services, thereby increasing strategic, operational, and financial risks for businesses. We prioritize employee health and provide infirmary services at both of our factory locations. We keep our infirmaries open during working hours and provide health support through a full-time occupational nurse and our on-site physician, present at the factory during designated hours each day. We conduct regular health screenings and evaluate the results through our occupational physician to enable early detection and diagnosis. For potential epidemic and pandemic risks, we have pre-defined the steps outlined in our Emergency Response Plan. During epidemic periods, we activate our guidelines to enhance hygiene and sanitation standards and mandate the use of personal protective equipment. We isolate symptomatic employees, implement remote working where appropriate, and update our processes in real time by monitoring official institutional announcements.
Social Eco-System Disruption The degradation of natural ecosystems as a result of human activities can lead to a loss of biodiversity and a reduction in ecosystem services. This can affect agriculture, fisheries and other industries. We manage the risk of natural ecosystem degradation and biodiversity loss through responsible sourcing and circular economy practices. Biodiversity and Soil Conservation are prioritized in our materiality matrix, and we monitor our environmental performance through the ISO 14001 Environmental Management System.
Social Accessibility Issues Issues related to the accessibility of facilities or resources can impact organizations’ operations and their sustainability goals. We manage the risk of availability of facilities and critical resources in multiple dimensions. We reduce disruptions in raw material supply with a multi-supplier strategy and localization policy. We strengthen supply chain security with safety stock policies, substitute raw material production and our Authorised Economic Operator Status (AEO) certification. We install consumption monitoring systems against risks in energy and water supply, increase the use of renewable energy with SPP investments, and ensure water efficiency with well water treatment and rainwater recovery systems. To ensure operational continuity, we invest in LEED Platinum-certified facilities and establish backup systems for production lines and human resources.
Social Industrial Accidents Chemical spills, explosions and other industrial accidents can lead to environmental pollution, harm to human health and loss of property. We manage chemical leakage, explosion, and industrial accident risks with ISO 45001 and ISO 14001 systems with the vision of “Zero Accidents - 100% Safe Workplace”. We ensure occupational safety with Intenseye, forklift-pedestrian safety practices, ergonomics solutions and regular inspections. We manage chemicals in accordance with REACH, CLP and KKDIK (Turkish REACH), dispose of hazardous waste in licensed facilities, and pre-treat wastewater. Across all our facilities, we maintain fire suppression systems, FireWorks software, and emergency public address infrastructure. By keeping our emergency response plans up to date through the Crisis Management Committee, we ensure the safety of our employees and the continuity of our operations.
Social Risk of Data Privacy and the Protection of Employee and Stakeholder Information With digitalization, the protection of employee, customer, and supplier data has become an important area of social responsibility. Data breaches, unauthorized sharing of personal information, or cyber security vulnerabilities can negatively impact both employee trust and stakeholder relationships and may result in legal sanctions. We manage the risk related to data privacy and the protection of employee and stakeholder information through an Information Security Management System aligned with the ISO/IEC 27001:2022 standard. In accordance with our policies, which are founded on the principles of confidentiality, integrity, and availability, we safeguard our information assets. Our Information Security Committee monitors the system biannually, evaluating the status of objectives, incidents, emergencies, as well as associated risks and opportunities. In accordance with PDPL, we process personal data based on the principles of lawfulness, fairness, and transparency, and document all our processes in the Personal Data Inventory. Through the Aromsa Code of Ethics, we ensure the protection of employee information, and in the field of cyber security, we implement real-time disaster recovery replication, vulnerability scanning, SIEM deployment, and regular penetration testing services. We had no confirmed breaches of customer privacy during the reporting period. We provided a total of 907 hours of information security awareness training between 2022 and 2024. Through our Digital Archive Project and cyber security trainings, we enhance our employees’ awareness and knowledge.
Social Corporate Reputation Risk Environmental impacts, product safety, supply chain practices, or misinformation originating from social media can influence the organization’s perception in society. Negative public perception can undermine the organization’s reputation, erode stakeholder trust, and jeopardize the integrity of its sustainability performance. We manage corporate reputation risk through transparency, ethical values, and a quality-focused management approach. We treat Business Ethics, Legal Compliance, and Transparency as “Very High Priority” and support this framework through our Code of Ethics, reporting channels, and Disciplinary Committee processes. We operate with a zero-tolerance principle against corruption and bribery and take pride in completing all social compliance audits (SEDEX, WCA, and global audits) with zero non-conformities While maintaining our BRCGS AA Grade in product quality, we ensure full traceability through HACCP and ERP-based systems. We strengthen customer satisfaction and brand perception through rising NPS scores and experiential areas in our R&D centre, while contributing to stakeholder development via Aromsa Academy. We further strengthen our corporate reputation through achievements such as the EFQM Grand Award and recognition in the TurkishTime R&D 250.
Social Risk of Failing to Adapt to Public Health and Nutrition Trends Increasing societal expectations for healthy nutrition, clean ingredients, allergen sensitivity, and additive transparency create significant social impacts for companies producing food ingredients. The rapid changes in dietary habits highlight the importance of transparency regarding product ingredients and responsibility towards public health. Failure to meet these expectations may negatively impact public health perception and social stakeholder trust. We manage the adaptation to public health and nutrition trends through our R&D-focused vision for developing healthy products. By allocating approximately 6% of our revenue to research and development, we deliver natural solutions that maintain taste integrity while enabling the reduction of sugar, salt, and fat, as well as the fortification of products with vitamins and minerals. We also develop off-taste masking solutions and customized formulations tailored to different age groups. We obtain functional extracts from food waste as part of the circular economy. We address clean label expectations with our Natkor® natural preservative system and Kasparov biodegradable microcapsules and use RSPO- and UTZ-certified raw materials in our production. In food safety, we implement the Turkish Food Codex, BRCGS AA Grade, and FSSC 22000 standards, and rigorously conduct TÜRKAK-accredited analyses, traceability, and allergen management. Additionally, through our active participation in industry platforms and Aromsa Academy trainings, we enhance stakeholder awareness on healthy nutrition.
Economic Local and Global Market Fluctuations Price fluctuations can affect supply chain costs and challenge businesses that depend on specific markets. We manage the impact of price fluctuations on supply chain costs with a multi-supplier strategy, safety stock policies, long-term contracts and localization approach; our local supply ratio reached 81% as of 2024. With our Authorised Economic Operator Status (AEO) certificate, we carry out customs processes safely and quickly and reduce the cost risks that may arise from supply interruptions. We achieve efficiency in operational costs through lean production and Kaizen practices and save resources through projects such as tanker box system and waste heat recovery. With ISO 50001 Energy Management System, we digitally monitor energy consumption and keep costs under control. We prevent the risk of labour force loss by protecting employee wages against inflation. We balance the risk of dependence on specific markets with our export network spread to more than 80 countries and develop customized solutions for different geographies. We registered our stability in exports by ranking among the top three in the IKMIB Stars of Export for three years in a row.
Economic High Energy Costs and Resource Constraints: Fluctuations in energy costs, energy resource constraints and energy supply reliability can affect the operational costs of organizations. As part of our energy policy, we prioritize investments in renewable energy (SPPs). Between 2020 and 2025, we completed SPP installations at three factories, aiming to source 6–8% of our electricity consumption from renewable energy within this scope. With the target of reducing energy intensity by 10% by 2027, we implement digital energy monitoring systems, waste heat recovery, LED conversions, and process optimizations. As of 2024, our energy intensity decreased from 6.71 GJ/ton to 5.96 GJ/ton. In addition, we support operational continuity through infrastructural measures such as emergency generators, thereby implementing a comprehensive and measurable strategy to mitigate risks related to energy cost volatility and supply reliability.
Economic Weaknesses in Supplier Relations Financial problems, management changes or ethical issues on the supplier side can adversely affect the supply of goods or services. We implement a multidimensional strategy to manage ethical, financial, and governance risks on the supplier side. We require all suppliers to sign the ETI Base Code and Terms & Conditions, and we monitor occupational health and safety, environmental, and social compliance criteria through audits. To mitigate the risks of financial instability and management changes, we have implemented a multi-supplier strategy, localization (81% local supplier ratio), and safety stock policies. We can provide substitute production for critical raw materials and, through the Supply Chain Strengthening Program, also support suppliers in enhancing their quality and efficiency. Through supplier satisfaction surveys and collaborative long-term relationships, we ensure the resilience and sustainability of our supply chain.
Economic Sustainable Transport and Transportation Challenges High carbon-emitting transport vehicles, traffic congestion and gaps in transport infrastructure can complicate sustainable transport strategies. To reduce carbon emissions from transportation, we manage our Scope 1-2 emissions in line with the 2050 Net Zero Carbon target and carry out measurement and improvement studies for Scope 3. Through our local sourcing strategy, we reduce long-distance transportation and optimize container circulation using alternative packaging such as tanker boxes and bag-in-box systems.
Economic Risk of Commodity Price Volatility and Agricultural Raw Materials Price volatility in global markets for agricultural raw materials used in flavour and food ingredients, including vanilla, citrus oils, cocoa derivatives, and spice extracts, is increasing due to factors such as climate change, political risks in producing regions, and supply constraints. These factors could affect costs and put pressure on product pricing. We manage commodity price fluctuations and agricultural raw material risks through proactive supply chain management, localization, R&D investments, and certified sourcing practices. Our multi-supplier strategy, increased safety stocks, and scenario-based preparations against geopolitical and climate risks ensure the continuity of supply. Between 2021 and 2024, we strengthened our operational resilience by producing substitute raw materials in-house. With this strategy, we achieved 84% in terms of quantity and 50% in terms of expenditure for local procurement, increasing our proportion of domestic suppliers from 78% in 2021 to 81% in 2024. Since 2021, through our Supply Chain Strengthening Program, we have been providing our suppliers with training on food safety, regulatory compliance, and quality. Through our R&D investments, which account for approximately 6% of our annual revenue, and our circular economy initiatives, we produce capsaicin from jalapeño waste, lycopene from tomato pomace, and functional extracts from citrus peels. In this way, we reduce import dependency while developing alternative locally sourced raw materials. For high-risk commodities, we utilize RSPO-certified palm oil and UTZ-certified cocoa to minimize environmental and social risks, and in our supplier audits, we assess not only food safety but also ethical, environmental, and social compliance criteria.
Economic Global Competition and the Risk of Losing Market Share The increasing presence of international players in the aroma industry, competition from low-cost production regions, and rapidly evolving customer expectations may elevate innovation costs while exerting pressure on market share. A decline in innovative product development could negatively impact growth performance. We manage global competition and market share risks through our robust R&D investments, extensive export network, and customer-focused quality approach. By allocating approximately 6% of our revenue to research and development, we take pride in ranking among the top three in the TurkishTime R&D 250 List for three consecutive years. Through our registered innovative solutions, including Camaro, Kasparov, and Natkor®, we strengthen our competitive advantage. While strengthening our international position through exports to over 80 countries and securing a top three ranking in IKMIB’s “Stars of Export” (2022–2024), we leverage global collaborations through memberships in EFFA and IFEAT. We manage customer relationships with a strategic partnership vision and continue to be the “go-to company” for nearly 70% of our clients. We enhance brand loyalty through spaces such as the Creative Flavour Studio and Sensory Experience Workshop and provide technical training to our stakeholders via Aromsa Academy, launched in 2025. We crowned our operational excellence journey with the EFQM Turkey Excellence Grand Award; while enhancing efficiency through lean thinking and Kaizen, we safeguard quality by maintaining our BRCGS AA Grade certification. We also reinforce our competitive strength through fair competition, ethical compliance, and a zero-tolerance approach to corruption.
Environmental Risk of Carbon Emission Measurement Limitation With the carbon emission measurement requirement, countries and regions may set carbon limitations and emission reduction targets covering specific industries, companies, or sectors. This can result in financial and legal risks for companies that do not make efforts to comply with the relevant regulations. The Carbon Border Adjustment Mechanism regulation will enter into force on October 1, 2023, limited to the reporting obligation. We operate a corporate emissions monitoring and reporting system to ensure compliance with all applicable national and international regulations, including carbon emission measurement requirements and the Carbon Border Adjustment Mechanism (CBAM). Within this framework, we have been regularly calculating and verifying our direct and indirect emissions since 2013.
Environmental Trade Tensions and Deteriorating Relations CBAM practices can cause trade tensions between importing and exporting countries. When one country imposes carbon regulations on another country’s products, it can negatively affect trade relations and lead to diplomatic tensions. We monitor and track international agreements and regulatory updates. During the CBAM transition period, we closely monitor supply chain data, raw material sources, and process fuel consumption in detail to comply with the required reporting obligations.
Environmental Industrial Compliance Challenges The CBAM may impose carbon limits on industries competing with a country’s strict carbon regulations. This can lead to cost increases, with industries having to invest and change business processes to comply. We monitor operational processes to meet industrial compliance requirements arising from CBAM and plan the necessary technical and infrastructural improvements to ensure full compliance with carbon regulations. We regularly monitor relevant legislation and CBAM implementation requirements, and plan necessary actions to ensure compliance.
Environmental Fair Competition Problems Due to the carbon regulations imposed on imported products, the CBAM may try to create fair competition conditions with products in the domestic market based on carbon emissions arising from the production of imported products. However, this may result in imported products becoming more expensive and affecting consumers’ preferences. We monitor international agreements and relevant regulations and calculate our carbon emissions.
Environmental Risk of Constraints in Renewable Energy Supply The growing global demand for green energy could lead to temporary or regional shortages of renewable energy. Constraints in accessing green energy certificates (such as I-REC) or price increases in the renewable energy market may hinder businesses from achieving their carbon reduction targets. This situation may increase the cost pressures of carbon-intensive electricity consumption, giving rise to transition risks. We manage the risk of renewable energy supply constraints through our SPP investments, energy efficiency initiatives, and digital monitoring systems. In line with our 2050 Net Zero Carbon and 100% renewable energy targets, we plan to source at least 6% of electricity consumption from solar power plants during the 2025–2027 period. Through rooftop SPP installations carried out in 2020, 2023, and 2025, we produced a total of 2,763 GJ of energy between 2022 and 2024, increasing our renewable energy usage rate to 3.46% as of 2024. We obtained ISO 50001 certification in 2023 to enhance our energy performance. In line with our goal of reducing energy consumption per product by 10% by 2027, we have lowered our energy intensity from 6.83 in 2022 to 6.09 in 2024. We achieve energy savings through waste heat recovery, surface insulation, LED lighting, selection of high-efficiency equipment, process improvements, and planned maintenance practices. With the Digital Energy Monitoring System, we track electricity and natural gas consumption in real time and aim for energy and water savings in new investments by complying with LEED Platinum requirements. Additionally, we support the Green Organized Industrial Zone initiatives in collaboration with GOSB, which integrate environmental considerations into all operations.
Social Employee Dissatisfaction and Talent Loss Lack of sustainability-related commitments and practices may lead to employee dissatisfaction and departures from the company. At the same time, there may be difficulties in attracting new talent sensitive to sustainability issues. To keep employee loyalty and satisfaction high, we measure employee engagement and satisfaction through regular surveys, reduce the voluntary turnover rate and provide welfare practices that support work-life balance. With a participatory management approach, we implement most of the suggestions submitted, and we reinforce our success in this area with the Happy Place to Work survey and TAIDER awards. We integrate sustainability culture into business processes, organize training programs for employees and stakeholders through Aromsa Academy, and attract new talents through young talent programs and internship support. Thanks to our equal-opportunity recruitment approach, women now represent nearly 50% of our total workforce, with female representation in senior management reaching 70%. We secure our sustainability commitments by supporting all these practices with transparent reporting, UN Global Compact membership, and compliance with international standards.
Social Low Employee Engagement Low engagement in sustainability goals among employees can complicate the process of achieving these goals. We implement our sustainability initiatives with the involvement of all departments. Our Sustainability Committee, established under the sponsorship of the Deputy General Manager, oversees performance through monthly meetings and communicates metrics such as carbon footprint, energy consumption and gender balance to employees. We conduct regular environmental and sustainability training, youth talent programs, and “30 Minutes for Development” sessions to raise employee awareness. We launched the “Aromsa Volunteers” initiative in 2024 to encourage volunteerism and increased the number of volunteer hours contributed by our employees. In addition, we implemented 142 of the 243 suggestions submitted by employees through our suggestion system and the Kaizen model. We also actively participated in social responsibility projects through social clubs.
Social Changing Consumer Preferences Sudden changes in consumer demand for sustainable products and services may make it challenging for enterprises to adjust. To adapt quickly to changes in consumer demands, we allocate 6% of our annual budget to innovation with our strong R&D infrastructure and develop proactive solutions through trend analysis. While offering environmentally friendly and healthy formulations with our proprietary products such as Kapsarom® and Natkor®, we organize “Innovative Tasting Days” in collaboration with the Innovation Team. We regard our customers as strategic stakeholders and develop natural and ethically sourced products, certified raw materials, and solutions that reduce carbon footprint. Through Aromsa Academy, we provide technical training and facilitate knowledge sharing. We systematically collect feedback through customer surveys, tasting sessions and field interviews, and strengthen trust and brand loyalty through experience tours.
Social Local Community Resistance There may be a risk that organizations may face resistance from the local communities in which they operate, or that there may be difficulties in engaging local people in sustainability projects. We regularly measure our relations with local communities through the Community Satisfaction Survey (CSS) and create action plans and annual community activity plans based on the results. We transparently use press, social media and local government collaborations in communication. With the “Aromsa Volunteers” brand we launched in 2024, we increased employee participation to more than 50% and increased volunteer hours from 23 to 54 in two years. We contribute to society through education, environment, culture, and arts projects and local environmental activities, and support inclusiveness through the social benefit-oriented activities of our theatre and music clubs. We also actively support Green OIZ efforts with GOSB and disaster awareness projects with local governments.
Social Shareholder Expectations Different stakeholder groups (investors, customers, employees, society) may have different expectations and demands. Balancing and meeting these expectations may be risky. We manage the risk of conflicting stakeholder expectations with the principles of mutual trust, transparency and long-term cooperation. We define all our stakeholders as groups that affect business processes or are affected by our decisions and integrate their expectations into our strategy through continuous feedback mechanisms. With the Materiality Matrix, we balance the economic, social and environmental demands of different stakeholder groups, and holistically address key sustainability principles such as product quality, innovation, and climate mitigation. Our Sustainability Committee, sponsored by the Deputy General Manager and representing nine different departments, coordinates this process and integrates ESG criteria into decision-making processes as an integral component.
Economic Operational Challenges The implementation of new sustainability practices, digital systems, and data-driven business models across the organization may necessitate the redesign of existing processes, the modernization of operational infrastructure, and the adaptation of employees to this transformation. This transition process may create short-term challenges for the organization by causing temporary disruptions in workflows, increasing integration costs, and leading to fluctuations in operational efficiency. We support the integration of sustainable practices with lean production, Kaizen and process optimization, and reduce waste by increasing operational efficiency. For energy and water efficiency, we commission SPP investments, rainwater collection systems and LEED Platinum targeted green buildings. Within the scope of digital transformation, we have completed the transition to S/4HANA Rise, established a data-driven decision-making infrastructure and plan to commission MES, APS, SCM, LIMS and PLM systems between 2025 and 2028. We ensure the rapid adaptation of employees to new systems by continuously supporting training and competency development through Aromsa Academy and digital platforms.
Economic Political and Economic Uncertainties in International Markets When organizations decide to expand their sustainability strategies to international markets, they may face the challenge of dealing with political and economic uncertainties in different countries. We address risk management against political and economic uncertainties in international markets with strategic, financial, operational and external environment dimensions. We apply scenario analyses and early warning mechanisms for geopolitical developments, climate crisis and resource constraints, and conduct regulatory monitoring with expert teams and international collaborations. Our seven factories in Türkiye, as well as our facilities in Germany and our sales office in Russia, provide geographical diversity and reduce dependency. We strengthen our supply security with the multi-supplier strategy and Authorised Economic Operator Status (AEO) certificate and reinforce our global presence with international fairs. By adhering to legal compliance, ethical principles and transparency in all geographies, we increase our credibility through our representation in international organizations such as IFEAT.
Economic Unequal Economic Development Unequal economic development and social issues can make it difficult for organizations to focus on and implement sustainability projects. Despite economic uncertainties, we did not deviate from our strategic goals by achieving double-digit growth. We categorize our risks into strategic, financial, operational and external environment dimensions and conduct scenario studies against geopolitical developments. We consider sustainability as an integral part of our way of doing business and integrate ESG criteria into decision-making processes. In the social domain, we implement projects aligned with SDG 10 (Reduced Inequalities), SDG 5 (Gender Equality), and SDG 4 (Quality Education). We deliver inclusive solutions through the promotion of women’s employment, the support of women-led producer cooperatives, and the provision of scholarship and mentoring programs. Inspired by Atatürk’s vision of a “social factory”, we increase volunteering projects and ensure social compliance with the prohibition of child labour in the supply chain and ETI standards.
Economic Challenges in Adapting to New Markets As organizations expand the sustainability transition into new markets, they may face challenges in adapting to these markets related to language, culture and local regulations. We ensure cultural and linguistic harmony in different markets by combining our global expertise with local sensitivities. Thanks to our representative offices and application laboratories, we develop flavours specific to each culture and strengthen adaptation with human resource rotation and family support in our factory in Germany. We support our diversity and inclusion approach with projects such as “Flavoured Recipes”. We manage compliance risks through proactive regulatory monitoring, continuous audits and cooperation with international organizations. We produce our products in compliance with the Turkish Food Codex and global regulations and report them according to GRI Standards. While we adapt quickly to new markets with food legislation trainings under the roof of Aromsa Academy, we reinforce our reliability in the international arena with our Authorized Economic Operator Certificate and IFEAT membership.
Economic Supply Chain Security Finding sustainability-aligned suppliers and securing this supply chain can be challenging. We expect from our suppliers not only quality but also compliance with ethical, social and environmental standards. We require the ETI Core Terms and Conditions to be signed. We incorporate occupational safety and health, environmental and social compliance criteria into our evaluation processes. We ensure responsible sourcing with certified raw materials such as RSPO, UTZ and RA. We build the capacity of our suppliers through the Supplier Empowerment Program we launched in 2021 and the Supplier Day events we organize. We ensure our business continuity with a multi-supplier strategy, safety stock policies and localization steps; we ensure social and environmental compliance through periodic audits and zero non-compliance targets.
Environmental Use of Renewable Energy Sourcing energy from renewable resources represents a critical opportunity to reduce carbon footprint, achieve energy cost savings, and enhance energy security. We implement our energy management in accordance with the ISO 50001 standard and generate our own electricity through solar power plants (SPPs) installed on the rooftops of our Aromsa 1, Aromsa 6, and Aromsa 5 (Headquarters) buildings. Over the next three years, we aim to source at least 6% of our electricity consumption from these investments.
Environmental Water Efficiency and Management Monitoring and reducing water consumption through effective strategies enhances operational efficiency, conserves water resources, and strengthens organizational resilience. Compared to the 2024 baseline, we aim to reduce our water consumption per unit of production by 10% by the end of 2027. We reduce mains water usage through our rainwater harvesting systems and the well water treatment facility we have commissioned. While utilizing groundwater as a secondary source, we also contribute to replenishing underground water reserves by redirecting overflow from our rainwater storage back underground.
Environmental Decarbonization and Emissions Management Achieving environmental sustainability performance means putting strategies in place to reduce carbon emissions and combat climate change. We aim to achieve the Net Zero Carbon target. To reduce our supply chain– related emissions (Scope 3), we increased our local supplier ratio to 81%, thereby lowering logistics-related carbon emissions.
Environmental Water Supply and Treatment Projects The treatment and reuse of wastewater help prevent environmental pollution while contributing to the water cycle. We discharge wastewater generated from our production processes into the sewer line of GOSB (Gebze Organized Industrial Zone) Wastewater Treatment Plant after passing it through our on-site preliminary treatment systems. We also filter the rainwater we collect and use it for garden irrigation and in our reservoirs.
Social Training and Awareness Programs Raising sustainability awareness strengthens corporate culture by increasing employee and stakeholder engagement. Under the Aromsa Academy, we provide training on sustainability, food safety, and technical topics to our employees, suppliers, and customers. Through our Sustainability Committee, we enhance internal awareness by publishing quarterly newsletters.
Economic Digital Transformation and the Use of Advanced Technology Digitalization of business processes provides a competitive advantage by enhancing operational speed, accuracy, and efficiency. We have launched the SAP S/4HANA digital transformation project and the AI-powered occupational health and safety platform, “Intenseye”. By digitizing manual processes, we track efficiency in real time and set intelligent performance targets.
Economic Digital Monitoring and Reporting Tools Monitoring environmental and social performance through digital tools enhances transparency and accountability. Through our Digital Energy Monitoring System, we track electricity and natural gas consumption in real time and base our efficiency initiatives on the insights obtained from this data. We aim to monitor and report our key ESG (Environmental, Social, and Governance) indicators through digital systems.
Environmental Green Energy and Carbon Footprint Reduction Companies are taking strategic measures to increase the use of renewable energy and reduce their carbon footprint in the context of combating climate change. Energy efficiency initiatives, clean energy investments, the monitoring of supply chain–related emissions, and the assessment of carbon impacts across the entire product life cycle are among the increasingly adopted practices. Consistent with net zero targets, the comprehensive management of Scope 1, 2, and increasingly Scope 3 emissions are taking centre stage. In addition to our existing SPPs, we are developing new SPP projects. We priorities local sourcing and conduct our Scope 3 calculations while investing in solutions to reduce our energy consumption. In line with our net zero target, we are planning product life cycle initiatives by 2026 and managing our carbon footprint more comprehensively across the entire value chain.
Environmental Circular Economy and Waste Reduction Circular economy principles are increasingly being used to more efficiently improve resources and reduce waste. Strategies focusing on recycling, reuse and waste reduction are becoming widespread. We attach importance to recycling within the scope of our Waste Management System; we collect our wastes separately and send them to licensed companies. We realize R&D projects that will contribute to the circular economy.
Environmental Water Management and Efficient Use Companies tend to use water resources effectively and sustainably, reduce water consumption and adopt water management strategies. We place water efficiency at the core of our strategic objectives and, accordingly, are establishing a comprehensive water management system. We aim to complete the water footprint calculation and verification processes for the 2024 data. Furthermore, with the implementation of our rainwater harvesting systems and the GOSB Grey Water Project, we plan to integrate these structures into our alternative water resources.
Environmental Innovation and Green Technologies Investments in green technologies and sustainable innovations are on the rise. Innovative solutions can both improve business processes and reduce environmental impact. In addition to our green buildings, we have green technologies with our SPP projects and rainwater collection systems. We make energy and resource efficient choices, such as equipment purchases and product development.
Environmental “Zero Carbon” Company Targets Companies, industries, and countries are focusing on reducing their carbon footprint by setting zero net carbon targets. Efforts to reduce carbon emissions are an important trend to increase sustainability. In line with our 2050 Net Zero target, we regularly calculate our Scope 1, Scope 2, and Scope 3 emissions. We adopt a data-driven approach to develop our carbon reduction roadmap and strengthen emission management through energy efficiency, renewable energy use, and supply chain collaborations.
Environmental Energy Training and Awareness Raising public awareness on energy efficiency, promoting energy saving habits and training on sustainable energy use is one of the sustainability trends in the energy field. We conduct regular training and awareness programs to enhance employee understanding of energy efficiency and sustainable energy use. Within the scope of the energy management system, we share the data obtained with our employees and aim to foster an energy culture focused on continuous improvement.
Environmental Digitalization, Classification, and Recycling Practices in Waste Management In the field of waste management, digitalization, accurate classification, and recycling-focused approaches are among the prominent sustainability trends. The separation of waste generated from production processes at source, the proper classification of various waste streams, including waste electrical and electronic equipment, and their diversion to appropriate recycling processes support environmental improvement initiatives. The real-time monitoring of waste through digital systems, the regular reporting of performance data, and the enhanced transparency of disclosure processes are considered a trend that strengthens enterprises’ environmental performance management. This trend contributes to the widespread adoption of circular economy practices while also supporting the enhancement of operational efficiency and regulatory compliance processes. We approach our waste management processes holistically, implementing classification, monitoring, and recycling practices through an integrated system. Within the Waste Management System, we regularly report all our waste and increase our recycling rates by directing source-separated waste to licensed companies. We separately collect waste electrical and electronic equipment (EEE) and ensure their transfer to licensed recycling companies. In addition, we systematically consolidate e-waste accumulated in employees’ homes at designated collection points within our organization. Revenues generated from e-waste are directed to social responsibility projects, and we support tree-planting initiatives in collaboration with TEMA. To enhance the transparency and traceability of our waste management processes, we monitor our performance indicators (KPIs) monthly and track all waste shipments in real time through MOTAT (Mobile Waste Tracking System). This enables us to achieve full regulatory compliance while continuously improving the environmental impact of our operations.
Social Forest Conservation and Reforestation Forest conservation and reforestation projects carried out under Corporate Social Responsibility projects contribute to combating climate change by increasing carbon storage capacity. This is also important for preserving biodiversity and preventing soil erosion. In cooperation with TEMA Foundation, we donate saplings and contribute to the afforestation of our country through the revenues generated from employee events, social clubs and Aromatic theatre performances. We encourage the participation of our employees and raise environmental awareness through activities such as workshops at Ramset Hanım’s Kitchen and environmental walks. We also create a strategic focus by identifying “Biodiversity and Soil Conservation” as a material area in our sustainability materiality matrix.
Social Employee Health and Satisfaction Companies implement programs and policies that support employees’ physical and mental health and focus on ensuring employees’ work-life balance. Healthy working conditions, ergonomic office arrangements and mental health supports are part of this trend. We support employee well-being through our corporate culture, recognized with the “Happy Place to Work in Türkiye” award. In our regularly conducted employee engagement and satisfaction surveys, our satisfaction rate was 83.2% in 2023, with work-life balance ranking among the highest-rated parameters. With the goal of “zero accidents”, we are implementing expanded health screenings, ergonomic risk assessments and artificial intelligence-supported safety systems. We offer our employees private health and life insurance, bonuses and social support; we strengthen their personal development and team bonds through social clubs and concerts. We maintain communication through the Aromsa.Net intranet, webinars and face-to-face meetings, and support a fair working environment through the Equality, Diversity, and Inclusion Committee.
Social Sustainability in Training Programs Training institutions focus on raising sustainability awareness among students through programs and projects that include sustainability issues. We strengthen sustainability awareness through our collaborations with training institutions. With the Aromsa Academy, which we launched in 2025, we provide qualified training support to university students and introduce students from METU, YTU and ITU to the industry through technical trips. We contribute to the METU IFT R&D Competition as the main sponsor and create opportunities for young talents with our internship programs. In addition, we implement the Vocational High School Coaches Program and collaborate with the GOSB Tadım Jale Yücel Vocational High School; provide tablets, computers, and books to village schools; and establish libraries in schools located in earthquake-affected regions. All these initiatives reflect our vision for sustainability-focused training.
Social Entrepreneurship and Social Innovation Sustainability-focused entrepreneurship and social innovation enable the emergence of new models and solutions in the business world. This contributes to the creation of business models that take into account environmental and social impact. We support sustainability-focused entrepreneurship and social innovation through R&D, partnerships, and community projects. With Wastepresso, we reduce CO₂ by upcycling coffee waste and develop value-added products such as capsaicin, lycopene and functional flavours from food waste in our R&D centre. We position Aromsa Academy, which we established in 2025, as a social innovation model that transfers its income to equal opportunities in education. Additionally, we strengthen our social impact through our Chamber Orchestra, the Aromsa Volunteers program, and collaborations with women’s cooperatives.
Social Diversity, Equity, and Inclusion Organizations integrate diversity, equity, and inclusion approaches into their human resources processes to create inclusive work environments where differences are valued. Increasing female employment, strengthening equal opportunity policies, implementing inclusive leadership practices, and reducing representation disparities are among the key elements of this trend. As expectations for global standards compliance and transparent reporting increase, companies are treating their performance in DEI as a strategic priority. We manage compliance processes in diversity, equity, and inclusion through our inclusive governance structure, balanced representation, and cultural initiatives. We have embedded equal opportunity at the core of our HR processes and institutionalised this vision through the DEI Committee, which we established in 2022. Through our commitments to the UN Global Compact and WEPs, we align with international standards and rigorously uphold a zero-tolerance policy against discrimination. While maintaining a female workforce ratio of approximately 50% and a female managerial ratio of 68%, we are making a difference in the industry with up to 70% female representation in senior management. We uphold the principle of equal pay for equal work and maintain a 3% representation of employees with disabilities for the 2022–2024 period. Thanks to this inclusive culture, supported by the Flavoured Recipes Project and social clubs, we had the honour of being recognized as the “Happy Place to Work” in the industry in 2023. We provide regular training on human rights and ethical conduct, and we enhance the capabilities of our managers through 180-degree leadership assessments. By successfully completing SEDEX and WCA audits with zero non-conformities, we validate our compliance with international standards.
Economic Carbon Markets and Commerce Companies are publishing public reports digitally to provide more transparency about their sustainability performance. To share our sustainability performance transparently, we publish our reports in digital media in accordance with GRI Standards. We have published three reports since 2018, and our 2022-2024 report is available on our corporate website. This process, which we maintain with the goal of publishing a report every three years, reflects our continuous transparency policy. Our reports include our ESG performance, contributions to the SDGs, and open communication channels for stakeholder feedback.
Economic Global Collaboration and Stakeholder Engagement Solutions to global challenges require international collaboration and stakeholder engagement from a sustainability perspective. This trend is founded on greater collaboration and stakeholder engagement among businesses, governments, civil society and academia. We manage the global trend of collaboration and stakeholder engagement through our membership in the UN Global Compact, collaborations with international organizations such as IFEAT and FEDIMA, and by taking an active role in events such as the Sustainable Food Summit. With the Supplier Empowerment Program, we have been running since 2021 and the Supplier Day event we organized in 2023, we spread sustainability awareness in the supply chain. The R&D projects and technical trips we conduct with universities, our cooperation with Wastepresso, the support we provide to TEMA and other NGOs, and the donation model of Aromsa Academy reinforce this approach. We also contribute to Green OSB efforts with GOSB and conduct joint environmental activities with local governments.
Economic Sustainable Supply Chain and Raw Material Security Post-pandemic global dynamics, geopolitical developments, and rising logistics costs are driving a structural transformation in supply chains. Practices aimed at making supply chains more resilient, agile, and sustainable are gaining importance across the industry. In this context, localization trends, multi-supplier models, strategic inventory management, and supplier diversification approaches are increasingly being adopted. We manage the trend of sustainable supply chain and raw material security through proactive risk management, localization, supplier development, and ethical sourcing practices. Through our proactive risk and crisis management system, we monitor vulnerabilities within the supply chain and ensure supply continuity through our multi-supplier strategy, alternative sourcing initiatives, and safety stock policies. During the period from 2021 to 2024, including the COVID era, we maintained supply continuity by producing substitute raw materials in-house and increasing our inventory levels. In response to external risks, we implemented scenario-based preparedness measures and deployed digital monitoring systems. Local procurement accounts for 84% of total purchases by volume and 50% by value. Our local supplier ratio increased from 78% in 2021 to 81% in 2024. Since 2021, through our Supply Chain Strengthening Program, we provide training to our suppliers in areas such as quality, regulations, allergens, and microbiology. In this context, we provided a total of 1,191 hours of training through 24 programs in 2024 and organized our Supplier Day event in 2023, which was attended by international suppliers. Additionally, Aromsa Academy supports supplier capacity. Within the scope of ethical and sustainable sourcing, we are a signatory to the ETI Base Code and require our suppliers to adhere to these standards. In our evaluations, we apply ethical, environmental, and social compliance criteria and implement multi-stage monitoring and audit processes. Additionally, through our Authorized Economic Operator (AEO) certification, we continue to position ourselves as a secure and reliable partner in international trade.
Economic Cost Management Based on Resource and Energy Efficiency Rising energy prices and resource costs are driving businesses to pursue operational efficiency initiatives. Practices such as energy efficiency, waste reduction, process optimization, and automation are becoming key drivers of economic performance. We manage the trend of cost management based on resource and energy efficiency through our effective energy management, operational excellence, and circular economy practices. With the ISO 50001 Energy Management System certified in 2023, we continuously improve our energy performance and aim to reduce energy consumption per product by 10% by 2027. Our energy intensity decreased from 6.83 GJ/ton in 2022 to 6.09 GJ/ton in 2024. We monitor our electricity and natural gas consumption through a Digital Energy Tracking System and achieve energy savings through heat recovery, insulation measures, process optimization, the use of high-efficiency equipment, LED lighting, and planned maintenance practices. We increase the use of renewable energy through rooftop SPP installations. As of 2024, our share of renewable energy reached 3.46%, and we aim to source at least 6% of our electricity consumption from SPPs over the next three years. As part of our commitment to operational excellence, we implement the Kaizen model and encourage employee suggestions. Out of 243 suggestions, we implemented 142 and achieved both energy and resource savings through process improvements. We have enhanced our operational efficiency using tanker box systems and digital data analytics. Through our circular economy approach, we convert by-products such as coffee grounds, tomato pomace, citrus peels, and jalapeño waste into alternative raw materials, thereby also reducing costs. As part of these initiatives, we have prevented the release of 2,071 kg of CO₂e emissions from September 2023 onward. We separate our waste at the source and direct it to recycling processes. In 2024, our non-hazardous waste recycling rate was 0.025 tons of waste per ton of production.