Sustainability

Sustainability at Esan

Sustainability Approach

Investing in Planet

Social Governance

Investing in Future

Responsible Mining

Sustainability Reports

As ESAN, we aim to manage natural resources responsibly, minimize our environmental impact, and create long-term value for society. Our approach to sustainable mining enables us to conduct our operations by addressing economic, environmental, and social impacts with a holistic perspective.

We take a holistic approach with a sustainable mining philosophy.

Corporate Governance

As ESAN, our core goal is to monitor, measure, and continuously improve the environmental, social, and corporate governance impacts arising from our operations and services. To achieve this, we aim to establish a strong governance framework, meet stakeholder expectations, fulfill our sustainability commitments, and ensure long-term success. The collaboration between our Board of Directors and Executive Management allows us to align our company goals with changing market dynamics and stakeholder expectations through strategic planning, risk management, and decision-making processes. By promoting transparency, accountability, and strong governance practices, we aim to create sustainable value for our stakeholders.

We carry out our operations as part of the Eczacıbaşı Group. By aligning with the comprehensive business strategy of Eczacıbaşı Holding and its subsidiaries, we remain committed to their short-, medium-, and long-term goals. We manage our operations with precision, progressing in full alignment with the overall vision and strategic direction of the Eczacıbaşı Group. This partnership is one of the cornerstones of our way of doing business.

We aim to create sustainable value through strong governance.

Board of Directors

The ESAN Board of Directors plays a critical role in implementing strategic decisions. With a focus on compliance with our internal regulations and corporate policies, the Board is responsible for overseeing and representing the management of our company. Our Board aims to ensure sustainable success by considering factors such as risk management, growth opportunities, financial returns, and long-term interests. Through effective governance practices, we contribute to the long-term continuity of our organization and create value for stakeholders. Transparency, accountability, and ethical business practices are the foundation of all our decisions

Executive Management

Our Executive Management team provides strategic guidance to our company and is committed to delivering reliable, transparent, and high-quality services to all our stakeholders. Comprising eight members, the Executive Management team operates with a focus on sustainable excellence and leadership, in line with our company strategies and mission. We adopt a management approach that strengthens innovation, collaboration, and accountability, supporting long-term growth and success by leveraging expertise and leadership skills. By adapting to the changing needs of our stakeholders, we set our strategic priorities and are committed to achieving sustainable excellence across all areas of corporate governance, adopting the highest standards.

Double Materiality

With the Corporate Sustainability Reporting Directive (CSRD), which came into effect in 2024, companies are now required to evaluate sustainability topics based on the principle of double materiality. In this context, as Esan, we have started a double materiality assessment project in line with the European Sustainability Reporting Standards (ESRS). This project aims to go deeper than previous materiality analyses by examining the sustainability impacts, risks, and opportunities of each business line in more detail.

As a result of the project, a report was prepared to explain the methodological approach and findings of the double materiality assessment carried out specifically for Esan in 2024. The report includes a benchmarking analysis, stakeholder engagement process, and identification of impacts, risks, and opportunities (IRO). It also highlights key sustainability topics from the perspective of stakeholders. In addition to these findings, the report shares evaluations about how the concept of double materiality may affect the future.The assessment project has identified water management, energy management, climate change mitigation and stakeholder management as our four main issues at Esan.

Through the double materiality assessment, Esan’s sustainability priorities are thoroughly analyzed based on impacts, risks, and stakeholder expectations

Ethics & Compliance

Adherence to our corporate values and full compliance with business ethics and legal requirements are fundamental to everything we do. In line with the principles of integrity, honesty and transparency, we place respect for people and the environment, continuous development and contribution to social welfare at the heart of our business.

As an active participant in the United Nations Global Compact, we apply the principles of ethical business conduct in our relationships with all our stakeholders. We promote diversity, fulfill our social responsibilities and extend our ethical business practices throughout our supply chain.

Our Ethical Practices and Compliance Mechanism

Business ethics and legal compliance processes are carried out by the Audit Group, the Legal Department and the Compliance Committee. Our Code of Conduct clearly defines ethical expectations for our employees and business partners and is available on the Eczacıbaşı Group website.

In addition, through the Esan Sustainability Compliance Commitment, we aim to spread our understanding of sustainability and ethical business to our supply chain. It is our basic expectation that all suppliers and subcontractors who establish a business relationship with Esan fully comply with these rules.

Based on our Corporate Governance Principles, we will continue to strengthen our ethical business approach and create sustainable value for all our stakeholders.

As a responsible mining producer, Esan is committed to actively reducing its environmental impact and collaborating with stakeholders. To achieve this goal, we implement various initiatives focused on managing valuable resources efficiently, offering cleaner and more sustainable energy solutions, embracing circular economy principles, and preserving biodiversity. Through these efforts, we aim to minimize our ecological footprint, protect natural resources, and promote sustainable practices within the mining sector. Efficient use of natural resources, reducing environmental impacts, and leaving a livable environment for future generations are among our top priorities.

We acknowledge the potential impacts of climate change and extreme weather events on our sector and operations. In the face of these challenges, we recognize the importance of maintaining infrastructure resilience and conserving our water and energy resources. Beyond meeting legal requirements, we adopt the latest technologies in air, water, soil, and noise management to ensure resource efficiency across all our operations. Specifically, we implement closed-loop systems and rainwater harvesting practices to protect natural water sources and reduce our environmental footprint.

With a focus on sustainability and resilience, we strive to mitigate climate-related risks and ensure the long-term viability of our operations. Climate change ranks high among Esan’s priority risk areas, and we are actively working to understand its specific impacts on our business and value chain. This enables us to identify opportunities linked to the transition to a low-carbon economy and proactively address the risks associated with climate change.

Low Carbon Transition Project

In this project, Scope 1, Scope 2, and Scope 3 assessments were performed to meet international standards in the area of carbon emissions. The project calculated Esan’s GHG emissions and developed a low carbon transition strategy and roadmap. This roadmap identified short and long-term climate change targets and outlined Esan’s climate risks, opportunities, and financial implications. The project also aims to ensure alignment with the expectations of external stakeholders, investors, financial institutions, and national/international sustainability indices and best practices.

Esan’s greenhouse gas emissions have been calculated in line with international standards, supported by a low-carbon strategy and verified through an independent assurance process.

*Scope 1: Refers to greenhouse gas emissions from combustion in production and includes the value chain.

*Scope 2: Greenhouse gas emissions from electricity used in production.

*Scope 3: Greenhouse gas emissions from the value chain.

Energy Management

Milas – Yeniköy Solar Power Plant /2022 (1.132kWp Rooftop Power)

Milas – Güllük Solar Power Plant / 2014 (500 kWp Rooftop Power)

Bozüyük Solar Power Plant / 2022 (633 kWp Rooftop Power)

Balya Solar Power Plant - Roof/ 2023 (1.809 kWp Rooftop Power)

Balya Solar Power Plant – Land / 2023 & 2025 (5.331 kWp Over-land Power)

Milas – Çine Solar Power Plant / 2023 (1.001 kWp Rooftop Power)

Energy is a key component of our operations and a significant source of cost and carbon emissions. We recognise the need to continually reduce our greenhouse gas emissions. Our priorities include understanding the potential impact of climate change on our business and value chain, and maximising the opportunities associated with the transition to a low-carbon future. Accordingly, we are committed to taking the necessary steps to minimise our carbon footprint and contribute to a sustainable, low-carbon economy. We are prioritising energy efficiency and implementing several projects. By the end of 2025, we aim to reduce our energy intensity to below 0.076 MWh/tonne of feed. At the same time, we are investing and developing projects to keep our emissions intensity below 0.010 tonnes of CO2 per tonne of production.

The transition to renewable energy plays a key role in achieving these targets. We aim to reduce our carbon emissions and mitigate the effects of climate change by switching from fossil fuels to renewable energy sources such as solar, wind, hydro and geothermal. We are focused on building a more resilient and environmentally friendly future with sustainable and clean energy solutions.

Recognising the importance of renewable energy in the fight against climate change, we invest in potential renewable energy projects in line with our sustainability strategies. In this context, we have installed a total of 10.4 MW of renewable energy capacity to strengthen our facilities and continue our efforts towards sustainable energy management.

Biodiversity

United Nations Sustainable Development Goal (SDG) 15 focuses on protecting land ecosystems and highlights the impact of human activities on nature. Today, around 40,000 species are at risk of extinction, and each year, 10 million hectares of forest are lost. Mining activities also have a significant impact on these ecosystems.

At Esan, we carry out all our mining activities with environmental responsibility throughout the entire life cycle. We are committed to protecting the environment and aim to reduce the impacts of our operations.

In this context:

We continue our efforts under the Biodiversity Action Plan we have prepared.
We work with academic experts specialized in flora, fauna, hydrobiology, and ornithology to prepare biodiversity monitoring reports.
We conduct Flora and Fauna Assessment studies. As part of this work, we collect seeds of endemic species found in our operation areas and deliver them to the Seed Bank of the Ministry of Agriculture and Forestry.
We implement erosion prevention and re-vegetation projects in our operation areas to support biodiversity.

With these steps, we aim to protect biodiversity in the regions where we operate and promote sustainable mining practices.

As Esan, we aim to create value for society and the environment by adopting a sustainable and responsible business model in all areas in which we operate. We act in accordance with the principles of cultural heritage protection, respect for human rights, employee health and welfare, ethical supply chain management and building strong partnerships with communities. Our social management is based on a holistic approach that considers not only the economic, but also the environmental and social impacts of our operations. We shape our sustainable growth not only by managing our environmental impacts, but also through the strong relationships we build with society and the social value we create.

Gender Equality

At Esan, we are committed to promoting equal opportunities and supporting gender equality in the mining sector. We believe that a sustainable future is only possible with the equal participation of women in social and economic life. We also see diversity and inclusion in the workforce as essential pillars of our corporate culture. We align our approach with the European Bank for Reconstruction and Development (EBRD) Performance Requirement 2, which defines standards on working conditions and equal opportunities. Our way of working incorporates key principles such as non-discrimination, inclusive recruitment, fair remuneration, and a safe working environment. In our recruitment processes, we apply positive discrimination and design targeted training and development programs to increase the participation of women in the workforce—especially in field roles. We aim to promote gender equality both within our company and across our value chain by offering a fair, transparent, and inclusive work environment for all employees.

At Esan, we shape our human resources policies in line with the United Nations Universal Declaration of Human Rights and the UN Women’s Empowerment Principles. Through our “ALLforALL” Equal Opportunities Committee, we strive to expand equality-focused practices. We also encourage our suppliers and business partners to adopt the same ethical and social standards.

To strengthen employee engagement and create an excellent workplace for everyone, we joined the “Great Place to Work” program in 2019. In 2020, we became the first certified company in Turkey’s mining sector. We continue our efforts to improve equality and inclusion with a strong focus on employee satisfaction.

Career

Health and Wellbeing

As Esan, we recognise Occupational Health and Safety (OHS) as one of our top priorities. Our aim is to ensure the highest level of safety for our employees, contractors and visitors by implementing an OHS management system that meets international standards.

As a mining company, we have established a strong safety culture, supported by proactive measures and comprehensive protocols. To ensure safety in the workplace, we adopt a framework in line with the Group's OHS policy and implement practices that anticipate risks and develop preventive approaches.

Esan works with the Group OHS Committee and Sustainability Working Groups to create a sustainable workplace culture and integrate best practices into its operations. By providing an environment that supports the physical and mental well-being of our employees, we encourage their professional development and lay the foundation for a responsible future.

Responsible Mining and Ethical Supply Chain

Responsible mining and ethical supply chain management are fundamental pillars of our business model. In this context, we have applied for certification under the Responsible Minerals Initiative (RMI). With over 500 member companies, RMI promotes ethical mining practices and supports transparent and responsible supply chains in high-risk areas. Our applications for the Responsible Minerals Assurance Process (RMAP) reflect our commitment to sustainable resource management and transparent supply chains.

At Esan, we establish supplier relationships based on ethical and sustainable business principles. While collaborating with each partner in our supply chain, we aim to create positive impacts on the environment, society, and the economy. By strictly adhering to ethical and sustainability standards, we manage our supply chain responsibly and develop strong, trust-based partnerships with all stakeholders involved in this process.

The selection and evaluation of our suppliers are carried out carefully within specific standards. This process includes a performance-based assessment system and criteria related to occupational health and safety, environmental values, and social compliance. Every supplier is expected to align with our ethical and sustainability goals.

Additionally, we place special importance on using local resources and supporting local businesses. By working with local suppliers, we contribute to the economic development of the regions where we operate. This approach not only enhances the sustainability of our supply chain but also positively impacts local economies and communities.

As Esan, we continuously improve our supply chain processes in line with global sustainability principles and align them with industry best practices. In this regard, we aim to manage our supply chain in compliance with internationally recognized standards and human rights guidelines.

Corporate Social Responsibility

Responsibility that Adds Value to the Future

At Esan, we recognize that our fundamental responsibility in the regions where we operate is not only to generate economic value, but also to create social and environmental value. With our sense of responsibility towards society, the environment, and the future, we view our corporate social responsibility (CSR) projects not just as social support activities, but as a fundamental component of sustainable development. We design our CSR projects with a sensitive, inclusive, and sustainable approach that addresses local needs.

How Do We Manage Our CSR Projects?

At Esan, we shape all our projects primarily in line with the sustainability development goals of biodiversity, quality education for vulnerable groups, gender equality, and decent work and economic growth, and manage them with a strategic, participatory, and measurable approach. We carry out our processes by following these steps:

We analyze the local dynamics and social needs in the regions where we operate and identify our priorities by relating these analyses to the UN Sustainable Development Goals (SDGs).

We develop projects that aim to create social and environmental impact with measurable outputs.

We work in collaboration with our stakeholders and local communities within our area of impact, using a participatory model. This enhances the inclusivity and effectiveness of our projects.

While implementing projects effectively on the ground, we regularly monitor progress and assess them according to sustainability criteria.

At the end of each project, we conduct impact analyses on both social and environmental dimensions and report the contribution to the SDGs.

With a learning organization approach, we improve our processes using the data obtained from the projects, and continuously update our strategy for greater impact.

Stakeholder Participation

As Esan, we adopt a participatory management model to integrate sustainability into our value chain. We believe that regular and two-way communication with our stakeholders plays a crucial role in achieving our sustainability goals. This communication helps us identify global trends and market expectations, understand the needs and expectations of our stakeholders, and ensure that our impact is maximized efficiently.

Responding to stakeholder feedback with transparency, sincerity, honesty, and openness is our top priority. To promote effective communication, we establish various mechanisms such as open forums, formal meetings, face-to-face discussions, and local grievance procedures. This allows us to maintain continuous and transparent stakeholder engagement through clear policies and procedures.

The regular dialogues we establish with our stakeholders are essential for supporting and strengthening Eczacıbaşı Group’s sustainability journey.

Cultural Heritage

At Esan, we prioritize the protection of cultural heritage and sustainable development, recognizing the importance of preserving the historical and cultural values of the regions where we operate. Protecting cultural heritage plays a key role in ensuring the continuity of communities' identities and values.

With this understanding, we place special emphasis on cultural heritage preservation in the projects we undertake with financing from the European Bank for Reconstruction and Development (EBRD). In these EBRD-supported projects, we adopt a responsible approach that respects the lifestyles and cultural values of local communities. While continuing our mining activities, we strive to enhance our efforts to protect heritage and minimize environmental impacts.

We operate in full compliance with national and international regulations and cultural heritage protection standards. Additionally, we engage in continuous dialogue with communities, organizing educational and awareness programs to support the preservation of local cultures.

Respecting cultural heritage is not just a responsibility—it is also a fundamental step in leaving a valuable legacy for the future.

Resettlement

At Esan, we are committed to conducting our operations in a sustainable and socially responsible manner, ensuring positive impacts on local communities. In this context, we recognize our responsibilities in managing environmental and social impacts, particularly in avoiding and addressing resettlement situations. Our resettlement processes are supported by financing from the European Bank for Reconstruction and Development (EBRD). We adopt a fair, transparent, and sustainable approach, ensuring that community needs are fully considered. By maintaining active communication with local residents, we listen to their opinions and suggestions, carefully planning to provide suitable living conditions and relocation areas.

Additionally, we conduct environmental, social, and economic impact assessments to minimize the effects of resettlement. These evaluations help identify potential challenges and ensure that the necessary preventive measures are taken to support affected communities. All our resettlement projects are carried out in compliance with EBRD Social Performance Standards and World Bank Safeguard Principles, following the highest ethical standards and ensuring respect for community rights.

As the mining sector faces increasing pressure to reduce environmental impacts, enhance operational efficiency, and address social challenges, the adoption of innovation and digital technologies has become crucial. At Esan, we support our mission of creating a sustainable future through R&D, digital transformation, and innovation. These efforts play a key role in accelerating the sustainable transformation of the mining industry.

We are committed to the sustainable production of natural resources and prioritize innovative approaches, research, and development to achieve this mission. Our vision for the future is to build a safer, smarter, and more sustainable world. To this end, we integrate advanced technologies into every stage of production, implementing efficient practices that minimize our environmental impact.

When extracting precious metals and minerals, our goal is to reduce our environmental footprint for every ounce, carat, or kilogram produced. This approach is driven by a combination of smart innovation and a deep sense of responsibility. We aim to create lasting value while prioritizing the well-being of our employees, their families, local communities, and global society.

Additionally, we actively work toward building a healthier future for our planet by addressing the growing needs of the global population. Through our industry, we contribute to sustainability by providing materials for homes, electronic devices, and other future-oriented products. With our commitment to sustainable practices, we strive to create a brighter, healthier, and more prosperous future for all.

Total Productive Maintenance (TPM)

At Esan, we launched our Total Productive Maintenance (TPM) process in March 2024 with initial training sessions, followed by a kick-off meeting in July. The main goal of TPM is to increase total productivity through the active participation of all employees. This process succeeds through the integration of methods, systems, and workplace culture. Our primary objective is to promote preventive approaches for sustainability, ensure full employee involvement, and foster a culture of continuous improvement by focusing on on-site problem-solving.

Key Achievements in 2024

We have successfully measured performance across various areas, including productivity (OEE), quality, cost, delivery, occupational safety, employee health, environment, and workforce motivation.

All employees received training on:

TPM
Lean Thinking and Eight Wastes
Kaizen Philosophy
Focused Kaizen
Before/After Kaizen
5S Methodology

To identify waste, losses, and risks in processes, employee awareness has been increased.

Quick improvement initiatives, known as Before/After Kaizen, have been launched. A total of 353 Before/After Kaizen projects have been implemented in metallic mining operations.

Based on analysis results, priority improvement projects were identified, and 9 projects were successfully completed using the Focused Kaizen method.

To coordinate efforts in 5S, organizational development, occupational safety, employee health, professional maintenance, and continuous improvement (Kaizen), various working teams (committees) have been established. This has enabled the participation of many employees.

5S initiatives have started in the field, ensuring that sorting and organizing activities become continuous. As a result, our sites and facilities have become more organized, cleaner, more efficient, and safer.

Daily management systems have been introduced, allowing for the rapid identification and resolution of issues at all levels.

Using the Hoshin Kanri approach, senior management has defined the company's three-year strategic goals. These goals have been broken down into concrete improvement projects that are implemented at all levels.

Our TPM processes contribute to the sustainable growth of our company while also enabling operational excellence and workplace safety improvements.

Since 1978, Esan has been responsibly managing natural resources, carrying out environmentally and socially conscious mining activities. As part of our sustainability approach, we aim to minimize environmental impacts at every stage of our operations while improving the well-being of our employees and local communities.

In line with this commitment, we develop comprehensive policies in key areas such as ethical supply chain management, cultural heritage preservation, and transparent stakeholder communication.

With our sustainable mining approach, we are working to create a more livable world for future generations.

Ecovadis

Esan participates in EcoVadis assessments to further strengthen its commitments in the field of sustainability. EcoVadis is an independent platform that evaluates companies' environmental, social, and governance (ESG) performance on a global scale. This process measures our performance at every stage of the supply chain based on sustainability criteria and offers opportunities for improvement.

In 2024, Esan received a bronze medal with a score of 58 from the EcoVadis assessment. This achievement is an important step that reinforces our commitment to sustainability practices and corporate social responsibility. The award from EcoVadis demonstrates Esan's continuous development in the areas of environmental, social, and governance, as well as its dedication to the global sustainability framework.

Responsible Mining Initiative (RMI)

Esan adopts international standards in sustainability and corporate social responsibility, focusing on ESG (Environmental, Social, and Governance) and RMAP (Responsible Mining Assurance Program) processes. Our ESG processes provide a fundamental framework to minimize the environmental impact of our operations, fulfill our social responsibilities, and operate under strong governance principles. This approach aims to create lasting value not only in the business world but also in the communities where we operate.

RMAP is a program that promotes responsible mining and aims to ensure the sector’s compliance with the highest ethical standards. It offers a framework for adopting environmentally sensitive and ethical practices throughout all stages of mining operations.

As of 2024, Esan has actively begun its ESG and RMAP processes, and these will be key to achieving the company's sustainability goals. Esan is also the first company in its sector to initiate the ESG process. By fulfilling both environmental and social responsibilities, the integration of these two important processes into Esan’s business model aims to strengthen our leadership mission in the sector.

EBRD Processes

Esan is contributing to a sustainable future by fulfilling its environmental responsibilities and increasing operational efficiency with a $100 million sustainability-linked loan provided by the European Bank for Reconstruction and Development (EBRD). This loan will be primarily used for carbon reduction projects and operational efficiency investments, particularly at the Balya Mine. Our collaboration with the EBRD presents a significant opportunity to minimize our environmental impacts while enhancing the efficiency of our business processes.

This investment supports sustainable mining practices and focuses on key goals such as improving energy efficiency and reducing greenhouse gas emissions. Additionally, it represents an important step toward becoming one of the leaders in our sector in terms of the more efficient use of natural resources and environmental sustainability.

In this process, Esan not only prioritizes fulfilling its environmental responsibilities but also focuses on integrating women and young professionals into the industry. We aim to make a difference in our communities by offering training and employment opportunities that allow women and young people to develop their skills and participate in the workforce. In this way, we aim to strengthen not only environmental but also social sustainability.

Our partnership with the EBRD marks an important milestone in contributing to the economic development of communities while helping Esan achieve its sustainable development goals.