Our Approach to Environmental and Energy Awareness

Our primary goal in our environmental journey, which we started with the idea of reaching higher standards in protecting our environment, is to prevent and minimise our potential impacts on air, soil and water.

We believe that sustainable success can be achieved by acting with environmental awareness. With this perspective, we use production methods that take into account the protection of the environment and natural resources.

With the awareness of reducing consumption of natural resources and using them efficiently, we reduce our wastes and dispose of them appropriately by using the state-of-the-art recycling technologies.

As a result of our investments in environmentally friendly technologies and our management systems, Arçelik-LG was entitled to receive ISO 14001 certificate by TSE in 2003.

Waste Management We operate our waste sorting system effectively by raising environmental awareness through the trainings we provide to our employees, as well as state-of-the-art technology we use. We believe that the environment can only be protected with the participation of all our employees.

With the responsibility of managing the waste from its generation at the source to the disposal, we sort our wastes and send them to authorised institutions that comply with environmental laws on recycling or disposal.

Waste Water Management In order to prevent pollution of the receiving environment and improve waste water quality, we discharge our waste water after it is treated in biological and industrial treatment plants.

We check the compliance of the effluent quality with legal values with analyses made in our laboratories and other accredited institutions, and develop response scenarios for possible emergencies.

Air Quality Management The legal compliance of the emissions from our dyeing plant and incineration processes and the performance of the system are kept under control with periodic measurements. Thus, we carry out our production with an environmentally friendly process that does not affect climate change.

Raising Environmental Awareness Under the leadership of Arçelik-LG senior management, we, working as a socially responsible company, organise trainings, seminars and competitions related to the environment, and support environmental projects by allocating the necessary resources to increase the environmental awareness of our stakeholders, such as the auxiliary industry, customers and society.

Environment Themed Painting & Poetry & Design Contest As the Arçelik-LG family, within the scope of World Environment Day events, the "5th Traditional Environment-Themed Painting & Poetry & Design Competition", where our employees' primary school children or their siblings participated in, was held on June 5, 2013. The most successful works were awarded at the ceremony.

Coastal Clean-Up Activity Within the scope of our environmental and social responsibility activities, in order to contribute to the fight against marine pollution, a "Coastal Clean-Up Activity" was held at Heybeliada Çam Port on June 1, 2013 with TURMEPA.

Sapling Donation to Tema 646 Sapling Donations were made to Tema Foundation on behalf of our company with the award sent to us as a result of being selected as the 1st in 2012 EESH among LG factories in Europe and America.

With the projects we undertake to increase energy efficiency, as Arçelik-LG, we aim to reduce the amount of energy consumed to a minimum, without reducing the amount and quality of production, and hindering economic development and social welfare.

In addition to the initiatives of enterprises in productivity efforts, the support provided by official authorities is also of great importance, and it is highly motivating for innovative and productivity-enhancing steps to be taken. In this regard, the grants stipulated to be made available to the enterprises by the Electrical Power Resources Survey and Development Administration will be an important incentive and means for the realisation of the productivity-enhancing projects we have designed for our factory. In January 2010, the Efficiency Enhancing Project (EEP) file was prepared for the Electrical Power Resources Survey and Development Administration, and the approval of our file is expected from the institution.

The energy-efficiency practices that have been carried out in our company so far are as follows:

Ensuring Energy Saving with Field Scada Applications With Field Scada, all of the HVAC (heating, ventilation and cooling) systems in our factory, boilers, compressors, transformers, fire system, water tanks, server rooms, UPS control and faults in auxiliary facilities can be monitored.

A total of 30% energy savings have been achieved with the works carried out since 2008. These include:

• HVAC systems studies are programmed based on ambient temperature, humidity, production and working hours of the offices to effectively use energy.

• The existing fancoils in the cafeteria and the VRF air conditioners in some offices and meeting rooms have been made controllable through Field Scada. The fancoils in the cafeteria are automatically turned on one hour before the meal time and turned off at the end of the meal time, while the VRFs work automatically according to office working hours.

• Since keeping the automatic tarpaulin doors between the production areas and warehouses in the factory open causes the production area to cool down especially in winter, the doors are monitored by Field Scada and when they are kept open for 5 minutes the system sends an e-mail to the Technical Support Team.

• Boilers, chillers, air conditioning units and their pumps and valve groups in the HVAC system are controlled by Scada system including the line diagrams. With this control, the efficient and safe operation of the system is ensured.

• With the Field Scada, the number of active compressors and dryers in the system, generator operating hours and their fuel consumption, level and pumps of water tanks can be controlled.

Motion Sensor Application • With the help of motion-sensitive sensors, the lighting system is activated independently of manual control in areas where material/human activity is low. An average of 58% energy savings and a reduction of 12.3 tons of Greenhouse Gas per year have been achieved.

Water saving in Sinks and Urinals • All faucets and urinals in the factory have been replaced with sensor models and water consumption has been reduced. An average of 5.2% domestic water has been saved.

Water Saving in Leakage Testing Pools • The pool supply control has been made independent from the operator and water consumption has been reduced by extending the water cleaning period in the testing pools with the filtered water cycle system and adding a solenoid valve. An average of 60% water saving was achieved.

Decreasing the Number of Lighting Fixtures Used in Offices • LUX measurements were made in offices, meeting rooms and corridors, the lighting points above the standards were determined, and the number of fixtures/lamps was decreased. An average of 15% energy savings and a reduction of 1.5 tons of Greenhouse Gas per year have been achieved.

Production Line Automation • Unnecessary operation during long breaks such as at the end of shifts and meal breaks is prevented and electricity consumption is reduced by placing time counters on machinery and equipment. An average of 45% energy savings and a reduction of 19.4 tons of Greenhouse Gas per year have been achieved.

LED Applications in Lighting In order to achieve the LUX values specified in the standards, LED chips of appropriate power were selected and specially designed fixtures were used. 67% energy savings and a reduction of 6 tons of Greenhouse Gas per year have been achieved.

Benefiting from Daylight for Lighting • In order to benefit directly from daylight, 2 natural daylight lighting systems were mounted on the roof of the factory for trial. Photosensitive sensors will be added in order to be able to dim the lightings when daylight is used. It is planned to be applied on the entire production area after the trial.

What We Plan to Do Starting from the current year, LED applications are planned to be extended to all production lines, warehouses, outside lighting and offices, to abolish the use of mercury lamps, to reduce energy consumption by collecting the waste heat from the processes and using them in preheating/cooling, to save water and electricity by installing inverters on pumps of process and auxiliary plants, to reduce the compressor pressures by releasing the constraints in compressed air consumption, to save energy by ensuring that some equipment operating with compressed air are powered by electricity, and to use solar energy in water heating. The developments of the solar and wind energy systems are followed, and they are considered to be implemented if their usage reaches an effective level.

As Arçelik-LG, we will continue to work on our energy saving projects without slowing down by following new technologies.

For the first time in the air-conditioning industry, we used the Leopet Raw Material obtained from Recycled Disposable Plastic Bottle in our air-conditioner internal units.

With the use of Leopet raw materials, the following are achieved in 1 product (9K-12K):• 10 recycled plastic bottles• 1.5 kWh energy gain• 0.4 kg carbon dioxide emission gain

With the use of Leopet raw materials, the following are achieved in 1 product (SK 18K-24K):• 15 recycled plastic bottles• 2.25 kWh energy gain• 0.6 kg carbon dioxide emission gain