Sustainability at Eczacıbaşı Group

We place sustainable value creation at the heart of our business strategy and integrate sustainability approach into all our business processes, throughout the entire life cycle of our products. We prioritize identifying sustainable opportunities and continuously improve the way we generate value for our stakeholders.

As we embrace sustainability as both a business approach and a life choice, we commit to “building a healthier future, together ” with our stakeholders. Building on this commitment, our sustainability vision is to create positive business impact, ensure business continuity, and build competitive strength through smart positioning; in line with Eczacıbaşı’s legacy of responsibility toward the environment and our stakeholders.

Eczacıbaşı Group’s Materiality

At Eczacıbaşı Group, we believe that our primary responsibility to our stakeholders is to enhance our long-term economic performance through value creation, with a focus on resource efficiency and social welfare. To fulfill this responsibility, we take an integrated approach that considers external factors, the most significant issues for our stakeholders, and our ability to create value.

In line with this approach, in 2019 we conducted our first comprehensive materiality assessment covering all business lines, with the participation of approximately 250 stakeholders, and identified seven priority sustainability topics as a result of this process.

As part of the assessment updated in 2022, we increased the number of priority topics to 15 and structured them under four strategic pillars: Corporate Governance, Investing in the Planet, Investing in the People, and Investing in the Future.

In 2024, we further strengthened the process by conducting a Double Materiality Assessment (DMA) aligned with the European Sustainability Reporting Standards (ESRS), incorporating both impact and financial materiality perspectives, and completed our most comprehensive assessment to date with the contributions of 3,263 internal and external stakeholders.

We regularly review our prioritization approach as a core element of our sustainability management system, in line with evolving regulatory requirements and stakeholder expectations. Detailed information on the assessment and the updated priority topics is provided in the Eczacıbaşı Group 2024 Double Materiality Assessment Report.

Sustainability Governance

Eczacıbaşı Group’s governance approach is designed to create value for its stakeholders while ensuring sustainable growth and development in line with global best practices.

The main purpose of Eczacıbaşı Holding is to determine the overarching strategic direction and priorities of the Group, set key objectives, and provide guidance to ensure alignment, performance monitoring, and the consistent application of corporate standards across all Group companies.

Eczacıbaşı Holding's Board of Directors consists of ten full members, including two female and five indepent members. The Board of Directors conducts its duties through sub-committees established for Investment, Risk, Audit and Governance, Talent and Remuneration, and ESG (Environmental, Social, Governance).

Established at the level of the Board of Directors, the ESG Committee ensures the effectiveness of the sustainability management policies, strategies, governance bodies and management tools throughout the Group and carries out tasks such as assessing the validity of strategic priorities and making recommendations on environmental, social and governance issues.

During the reporting period, the ESG Committee initiated its work in full capacity, meeting at least once every quarter before the Board of Directors meetings.

The Chairman and Group CEO functions are carried out by separate individuals. In addition to the Group CEO, the Chairman of the Audit Board also reports directly to the Board of Directors. Group senior management consists of senior executives and function managers of companies reporting directly to the Group CEO.

Alignment across Group companies is ensured through the Sustainability Coordination Council, which is composed of representatives from the sustainability teams of Group companies. The Council convenes monthly, providing a platform that strengthens strategic coordination. During these meetings, ESG projects and best practices implemented by Group companies are shared and reviewed, emerging and existing regulatory developments are assessed, and ongoing initiatives addressing sustainability and climate-related risks and opportunities are followed. Topic-specific Working Groups, formed as needed, bring relevant agenda items to the Council meetings for discussion and evaluation. When necessary, external experts are invited to share their insights on specific topics. This structure supports effective coordination and informed decisionmaking in the Group’s ESG strategy and implementation processes.

Stakeholder Relations

Our stakeholder ecosystem includes a diverse range of individuals and groups, including people, consumers, employees, supply chain partners, media, universities, research and innovation centers, finance community, and civil society. At Eczacıbaşı Group, we value the importance of maintaining regular and direct communication with our stakeholders. By doing so, we can identify global trends and market expectations, and gain valuable insights into the needs and expectations of our stakeholders. We inform and collaborate with them to establish and maintain trustworthy relationships.