November 01, 2023 at 04:36 am EDT
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Dear Stakeholders,
As a country, we experienced one of the greatest disasters in our country's history in 2023. We are deeply saddened by the destruction in 11 cities caused by two major earthquakes on February 6th, and we commemorate our citizens who lost their lives in the earthquake. As Kordsa, we understand that this recovery process will last until all wounds are healed. We aim to stand by all the local stakeholders in the region and continue to contribute to the region's recovery. We have been supporting Sabancı Group's relief efforts in the earthquake zone since the first day. For this reason, we supported the disaster area by building damage assessment work with our Construction Reinforcement business unit, first aid operations with our Health Unit, and search and rescue efforts with our Emergency Response Team. We are doing our best to support our country in these difficult times and continue
to reinforce life. Sustainability Journey
Global Goals
Sustainable Development Goals..143
Verification Report and
With our ninth sustainability report that reflects Kordsa's economic, environmental, and social performance in
2022, we offer our stakeholders the opportunity to evaluate our impacts resulting from our activities and to evaluate our monitoring, improvement,
and measurement steps''in managing them. The Scope and Topic
Boundaries
The data in this report covers Kordsa's activities from January 1, 2022, to December 31, 2022. We also provide 2020 and 2021 data to monitor the trends. In addition to determining the process of the report content, we explain the boundaries of the material topics in the Our Sustainability Prioritiessection of this report. The list of topics that we include in our materiality matrix are all relevant to our global operations with no limitations. This year the scope of our report has not changed. Externally our suppliers and contractors also have impacts regarding these topics. We provide details
on management of impacts under
Evaluation and Selection of Supplierstopic of this report. Regarding our economic performance, we provide figures representing the company, not as country specific. The Principles
This report is prepared in accordance with the GRI Standards.In the process of identifying our strategic sustainability topics, we took into consideration GRI's principles of materiality, stakeholder inclusiveness, sustainability context and completeness. Our report also covers the 10 principles of the UN Global Compactthat we signed in 2014. UNGC Content Indexis located here. With our targets on material topics, we directly address eight of UN Sustainable Development Goals.Our report also covers the International Finance CorporationIFC's Performance Standards on Environmental and Social Sustainability that were established to pinpoint, assess, and manage social and environmental risks in project finance. Additionally, we analyzed the relevant SASB's (Sustainability Accounting Standards Board)topics and KPIs of the sectors Kordsa serves and explained how we support our customers' sustainability targets. External Audit and
Scope 3 calculations are verified by QSI. Next Report
We aim to publish the tenth of our sustainability reports, which we plan to prepare annually, in 2024. About the Report
link by clicking on the bold and underlined texts. You can reach any part of the report by using the navigation pane on top of each page. Related video on pages with play button you can watch the content. All items in the table of contents page are linked to relevant headings. You can simply click on the heading in the contents page to directly go to the relevant topic in the report. You can move forward and backward through the pages by clicking on the arrows at the right end of each page. Employees and Community
We Reinforce Life! Each moment in life is a unique source of happiness. We pioneer advancements in reinforcement technologies, drawing inspiration from the courage of ongoing development and the exhilaration of exploration. We take each step with passion towards a safe, easy, efficient, and sustainable world through tire reinforcement, construction reinforcement and composite technologies we develop. About the Report
MESSAGE FROM OUR CHAIRPERSON
In February 2023, as our report was being prepared for publication, our nation suffered one of the most significant natural catastrophes it has ever faced. We honor the memory of all the citizens who lost their lives during the two consecutive earthquakes. Since the onset of this tragedy, Kordsa has been
committed to extending essential assistance to the affected region, utilizing both tangible resources and moral support to aid in the recovery process''. About the Report
Throughout 2022, the global economy encountered an unrelenting sequence of substantial, compounding challenges. Commencing
with the COVID-19 pandemic, the turbulence extended with the war in Ukraine, giving rise to subsequent food and energy crises, escalating inflation, and a contracting debt landscape. These hardships were further exacerbated by the pervasive climate emergency felt across every corner of the globe. Amidst these complex challenges, Kordsa remained resolute in generating enduring value for our economy throughout 2022 while steadfastly adhering to sustainable growth objectives. We increased our turnover by 134% compared to 2021 and reached TRY 18.4 billion. Our net profit experienced a substantial 76% year-on- year escalation, soaring to TL 1.5 billion. In addition, we continued our significant domestic and international investments. With these endeavors, we made the strategic decision to invest USD 43 for our facilities and our products throughout 2022. These investments encompass the augmentation of our polyester yarn production line, introducing an additional dipping line dedicated to manufacturing single cords used in high-performance tires and enhancing Kratos polypropylene fiber synthetic reinforcement production capacity. We complemented our recent organic expansion with inorganic growth strategies. In pursuit of this goal, we successfully concluded the acquisition of the majority shares of the Italian firm Microtex Composites in 2022, following our acquisition of four companies in the
United States over the past few years. This strategic move fortified Kordsa's presence within the European market, broadened our robust portfolio of aviation clientele, and extended the scope of our services in the automotive and motorsports sectors. At Kordsa, our commitment to sustainable mobility drives us to employ recycled nylon and recycled polyester yarns in tire reinforcement technologies; within composite technologies, we manufacture reinforcement materials that make vehicles lighter and reduce fuel consumption. Throughout 2022, we continued to focus on advancing sustainable chemicals, bio-based polymers, and polymer recycling technologies. Within our construction reinforcement business unit, we are broadening our impact area and product portfolio by developing products that ensure enduring durability in concrete structures. Notably, Kordsa's Kratos Structural Reinforcement product line is pivotal in fortifying structures against earthquakes. Through our expertise in structural reinforcement, we bear the significant responsibility of enhancing the seismic resilience of our nation's building infrastructure. 'Data' stands as our most potent asset in the pursuit of heightened production efficiency, enhanced productivity, and the facilitation of agile and precise decision-making. Therefore, strengthening our digital infrastructure and adopting a data-based business culture is more important than ever. Accordingly, with our new digitalization process, which we call 'Kordsa 5.0', we first started to transform our enterprise resource planning (ERP) systems globally. Within the framework of our risk analysis studies, we actively monitor climate change-related risks. We systematically evaluate the risks and opportunities that may arise from possible legislative changes during the transition to a low-carbon economy, extreme weather conditions due to climate change, as well as shifts in customers' inclinations. Aligned with our dedication to the Science-Based Targets Initiative (SBTi), with which we actively contribute toward preventing global
warming from reaching 1.5°C, Kordsa is firmly committed to achieving net zero emissions by 2050. We also ranked in the Global A list in the 2022 CDP 'Supplier Engagement Rating,' illustrating the degree to which companies engage their suppliers in combatting climate change. Our performance with the CDP Climate Change Program merited a 'B' rating. With the 2022 CDP Water Program, we were among 107 companies in the Global A list worldwide. Through our consistent dedication to sustainability year after year, we have earned recognition in the inaugural 'BIST Sustainability 25 Index,' a newly established benchmark, as well as in the 'BIST Participation 30 Index'. At Kordsa, sustainability is deeply ingrained in our purpose and strategy. We collaborate closely with both our suppliers and customers to uphold social and environmental sustainability across the entire lifecycle - from sourcing raw materials to delivering products to our customers. Throughout 2022, our dedication to supporting diversity and inclusion at all levels of company management continued. We also remained committed to safeguarding human rights within our supplier network and our entire value chain. We unveiled our vision for Diversity, Equality, and Inclusion in alignment with these principles. In the 100th anniversary of our Republic, we will continue to generate economic, social, and environmental benefits for the ecosystem, including our business partners and customers, with our future projects and future-empowering technologies. I would like to express my heartfelt gratitude to all our stakeholders with whom we cooperate in delivering Kordsa's vision of reinforcing life and all our employees who contributed massively to our success. Kind Regards,
MESSAGE FROM OUR CEO
In February 2023, at the time of our report's publication, our nation suffered one of the most significant natural disasters in its history. We are deeply saddened by the catastrophic effects of the massive twin earthquakes that impacted 11 provinces, causing injuries or loss of life to thousands of our citizens. Our hearts go out to those who lost their lives, and we extend our condolences to their families and our entire nation. At Kordsa, we have been actively providing support to the affected region since the very beginning,
and we remain steadfast in our commitment to stand beside our fellow citizens'throughout' the entire reconstruction process until all wounds are healed. About the Report
Dear Stakeholders,
2022 was a deeply challenging year, prompting a reevaluation of the economy, social dynamics, business approaches, and all overarching
priorities on the global agenda. Businesses have transitioned towards cultivating flexibility and agility, devising effective solutions for challenges related to energy, supply chains, and raw materials. Sustainability and digitalization have retained their significance in shaping the foundation of the emerging world. At Kordsa, 2022 marked a profound year of change and evolution. As a result of our comprehensive analyses, we have created a new strategy that is 'growth-oriented' and centered on innovation, digitalization, sustainability, and the customers. Our new strategy involves extending our R&D strength from Türkiye to other operational domains globally and establishing technical centers to cater to local needs in the forthcoming phases. We are cultivating ecosystems that harness the collective intellect of our over 5,000 employees, suppliers, and all stakeholders to generate value for our esteemed customers. By investing in our composites business line, we successfully concluded the acquisition of the majority shares in the Italian firm Microtex Composites. By establishing a new facility in Europe, we have significantly broadened our global footprint in the composites domain while introducing the super luxury automotive sector and motorsport
entities into our customer portfolio. At Kordsa, which is widely regarded as a global reinforcement brand, we manage our performance in line with our sustainability goals with respect and responsibility for the society and environment we live in. Expansion through R&D and technology investments in our three main business areas, supporting the continuous development of our talented human resources, responsible use of natural resources, and creating sustainable value for all our key stakeholders and society through social development projects form the basis of our sustainability approach. Our journey has been about reinforcing life while enhancing our economic competitiveness through the principle of 'achieving more with fewer resources' ever since our inception. We have decreased fuel consumption by reducing tire rolling resistance, contributing to the creation of lightweight vehicles using our composite technologies, and facilitating sustainable construction initiatives through construction reinforcement technologies. Our enduring commitment to science and innovation continues to represent the core of our business model. We invest in clean technologies to ensure efficient energy use, reuse our materials, as well as reduce emissions, waste, and water consumption. Moreover, together with our R&D and production teams, we develop continuous improvement projects to increase the use
of bio-based and recycled materials as well as the rate of renewable energy. In 2022, 31% of the electricity we consumed at Kordsa was sourced from renewable energy. Our dedicated investments and expenditures for environmental initiatives surpassed USD 6.1 million. With the objective of contributing toward preventing global warming from rising above 1.5°C, we strive to realize net zero emissions by no later than 2050. We are committed to the Science-Based Targets Initiative, and our target approval process was completed before our report was published. Furthermore, by 2030, our resolute aim encompasses a 46.2% reduction in emissions compared to the levels of 2019. Our
ultimate goal is to transition into a net zero company by 2050. Within the scope of the CDP Program, which we have been reporting since 2016, we have steadily increased our rating since the first year. In the 2022 CDP Climate Change Program, we secured a rating of 'B.' Amidst the evaluation of 15 thousand companies in the 2022 CDP Water Program, Kordsa emerged as one of the 107 leading companies in the 'A' list with high performance worldwide. In addition to our success in the water program, we were also included in the Global A list in the 2022 CDP' Supplier Engagement Rating'. Concurrently, with our practices focusing on benefiting future mankind, we were awarded the 'Best Employer Certificate' by the independent research institution Great Place to Work® in 2022 in the four countries where we operate, namely Brazil, Indonesia, Thailand, and Türkiye. Guided by our commitment to empowering our workforce, we continuously conceive and execute innovative strategies within our expanding global organizational framework. Today, one out of every three automobile tires and two out of every three aircraft tires produced worldwide are reinforced by Kordsa. Beyond tires, our products are also used to reinforce the fuselages and cabins of new-generation airplanes and airport runways. Furthermore, we are one of the companies reinforcing NASA's Orion moon space capsule. All these achievements encapsulate the essence of our motto: 'We Reinforce Life.' I extend my sincere gratitude to all our exceptional employees whose tireless dedication has been the cornerstone of our 50-year journey, our shareholders for their steadfast support, our invaluable suppliers, and our esteemed customers. With unwavering confidence, I look forward to our continued journey in reinforcing life together. Sincerely,

Kordsa Teknik Tekstil : 2022SUSTAINABILITYREPORT

Sustainability roadmap is anticipated to reduce production-related emissions by more than 45% by 2030. Solar panels installed at a Kordsa facility. Photo credit: Kordsa
Kordsa  (Izmit, Turkey), a Sabancı Holding (Istanbul) subsidiary providing advanced reinforcement materials for tires, construction and composites, has obtained approval from the Science Based Targets Initiative (SBTi) for its emission reduction commitments. By complying with the SBTi’s criteria and recommendations, Kordsa will reduce its production-related emissions and increase the use of renewable energy, aiming to reduce its emissions by 46.2% by the year 2030, considering 2019 as the base year. SBTi, a partnership between CDP, UN Global Compact, World Resources Institute (WRI) and World Wildlife Fund for Nature (WWF), is one of the most respected global standards for setting targets for sustainability goals. Aligned with the targets approved by SBTi, Kordsa says it is taking steps to transform its supply chain ecosystem. In this regard, Kordsa has initiated its efforts to enable critical raw material suppliers’ transition to a low-carbon economy by 2027. “Keeping our promises to stakeholders is an integral part of Kordsa’s business culture,” Kordsa CEO İbrahim Özgür Yıldırım says, emphasizing the role Kordsa has transformed itself over its 50-year history . “Building on this culture and our values, just like all companies within Sabancı Group, we see sustainability as an opportunity for our world and humanity’s future. As part of our mission, ‘Reinforcing Life,’ we strive to demonstrate this approach in all sectors we operate in and extend our impact to the entire ecosystem. SBTi’s approval of Kordsa’s targets is the strongest evidence of how effectively our approach is recognized on a global scale. With this approach, we will continue to develop value-added and sustainable solutions for our customers while contributing to a more livable world through responsible governance practices.”

Kordsa obtains SBTi approval for emission reduction targets

Kordsa, Once Again, Receives the Ecovadis  'Gold Medal' Award in Sustainability
9 October 2023
Kordsa, a global leader in tire, construction reinforcement and composite technologies, has once again maintained the prestigious 'Gold' rating from EcoVadis, a world-renowned platform for sustainability assessments. A subsidiary of Sabancı Holding, Kordsa continues to hold its "Gold Medal" in the EcoVadis global sustainability assessment. Operating with 13 manufacturing facilities across 4 continents in line with its vision of ‘Reinforcing Life’, Kordsa reaffirmed its strong commitment to sustainability through its "Gold Medal" rating in the EcoVadis assessment. ×
Credit: Kordsa
In the 2022 assessment, the company ranked within the top 1% of its industry peers, further underlining once again that sustainability lies at the core of its advanced material technologies. Nevra Aydoğan Gürsoy, Director of Sustainability and Marketing Communications of Kordsa, remarked, “We are reshaping the industries we operate in—tire, construction reinforcement, and composite technologies. Our vision of 'Reinforcing Life' drives us to develop more efficient and eco-friendly technologies at every turn. As part of this effort, we have maintained our "Gold Medal" status for another year in EcoVadis, where environmental, human rights, ethics, and sustainable procurement criteria are evaluated, by increasing our score. EcoVadis employs a comprehensive assessment methodology that evaluates companies of all sizes, from large corporations to small enterprises, with a focus on holistic sustainability. Assessment criteria encompass factors such as company size, geographical location, and industry. The company's rating is derived from evidence-based evaluations conducted throughout the assessment process.

Kordsa, Once Again, Receives the Ecovadis  'Gold Medal' Award in Sustainability

Based in Izmit, Turkey since 1973, Kordsa celebrates its efforts in tire and construction reinforcement and composite technologies, as well as customer and employee support. Güler Sabancı speaking at Kordsa’s celebratory event. Photo Credit, all images: Kordsa
Kordsa (Izmit, Turkey) is celebrating its 50th year of global leadership in advanced tire and construction reinforcement and composite technologies. Speaking at the company’s anniversary event, Güler Sabancı, chair of parent company Sabancı Holding (Istanbul, Turkey), emphasized that Kordsa has achieved a number of firsts with its vision of becoming a global advanced material company. “Kordsa will continue to lead the global material revolution. The company will reinforce life in different geographies and even in space,” Sabancı says. “Kordsa will serve as a bridge between today and the future, as well as between Turkey and the world.”
Kordsa’s operations began in 1973 in Izmit. Operating in seven countries —  Turkey, Brazil, Indonesia, Thailand, the U.S., Germany and Italy, with a total of 13 manufacturing facilities and providing employment for more than 4,000 people across four continents — Kordsa continues to expand its global footprint in the fields of construction reinforcement and composite technologies. As of the end of 2022, Kordsa holds more than 900 patents. Sabancı reflects that Kordsa has always stood by its customers, regardless of time or place, over the course of its 50-year journey. “What defines Kordsa are our strong, meticulous, excellence-driven and technology-focused customers,” she says. “It is this passion for excellence that has propelled Kordsa to its current success. As a result, Kordsa has transformed into a company that reinforces two out of every three aircraft tires and one out of every three car tires globally.”
“One thing, however, remains consistent for Kordsa: Our purpose of existence that keeps us together, the importance we place on teamwork and collective wisdom, our unwavering commitment to high quality and our customer-centric approach,” Sabancı continues. “This mindset unites hundreds of employees from Indonesia, Thailand, the United States, Brazil and Italy into one team. Just as globalization cannot be explained solely through commercial relationships, being ‘global’ is not just about exporting. It’s about keeping a team together through all the time zone differences and cultural diversities, walking towards the same goal despite all the challenges. Kordsa is a global company because it has succeeded in doing just that.”

Kordsa has also put a large emphasize in human capital and employee development. Sabancı cites sending nearly 100 Kordsa employees to Sabancı University’s development programs, with this number on the rise. “Our perspective on development is not limited to university programs alone,” she says. “Our Composite Technologies Excellence Center [CTCE], established in 2016, has become a symbol of our mission to lead in innovation. Today, over 100 faculty members, visiting researchers, doctorate and master’s students at this center are researching the advanced material technologies of the future.”
During the first part of the celebration, keynote speaker and innovation expert Ben. M. Bensaou, professor of technology management and professor of Asian business and comparative management at Insead, shared comprehensive insights on the necessary thinking and approaches for organizations to spread innovation across the entire entity. Following Bensaou’s speech, a panel discussion titled “Materials of the Future” was held, featuring globally recognized figures in their respective fields. The panel included Rainer Egner, global sourcing director of sustainability and reinforcement materials at Goodyear; Dr. Mükerrem Çakmak, Reilly professor of materials and mechanical engineering at Purdue University; Dr. Taylor Sparks, associate professor of materials science and engineering at the University of Utah; and Adrian Williams, founder and managing director of Future Materials Group . The panel addressed the new trends and roadmaps in material technologies, considered a revolutionary force in the world economy.

Kordsa celebrates 50 years in advanced materials

5-day change
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Disclaimer
The information and opinions contained in this document have been compiled by KORDSA Teknik Tekstil Anonim Şirketi (the "Company") from sources believed to be reliable and in good faith, but no representation or warranty, expressed or implied, is made as to their accuracy, completeness or correctness. No undue reliance may be placed for any purposes whatsoever on the information contained in this presentation or on its completeness, accuracy or fairness. This document may contain forward-looking statements by using such words as "may", "will", "expect", "believe", "plan" and other similar terminology that reflect the Company management's current views, expectations, assumptions and forecasts with respect to certain future events. As the actual performance of the companies may be affected by risks and uncertainties, all opinions, information and estimates contained in this document constitute the Company's current judgment and are subject to change, update, amend, supplement or otherwise alter without notice. Although it is believed that the information and analysis are correct and expectations reflected in this document are reasonable, they may be affected by a variety of variables and changes in underlying assumptions that could cause actual results to differ materially. The Company does not undertake any obligation and disclaims any duty to update or revise any forward-looking statements, whether as a result of new information or future events. Neither this document nor the information contained within can construe any investment advice, invitation or an offer to buy or sell the Company and/or Its group companies' shares. The Company cannot guarantee that the securities described in this document constitute a suitable investment for all investors and nothing shall be taken as an inducement to any person to invest in or otherwise deal with any shares of the Company and its group companies. The information contained in this document is published for the assistance of recipients but is not to be relied upon as authoritative or taken in substitution for the exercise of judgment by any recipient. You must not distribute the information in this document to, or cause it to be used by, any person or entity in a place where its distribution or use would be unlawful. Neither the Company, its board of directors, directors, managers, nor any of Its employees shall have any liability whatsoever for any direct or consequential loss arising from any use of this document or its contents. 2

Kordsa Teknik Tekstil : 1H 23 Financial Results Presentation

SES AI (NYSE: SES) operates as a battery technology company. It develops a Mine-to-Man artificial intelligence (AI) software system for lithium (li)-metal batteries. The platform optimizes the entire lithium-metal battery value chain, from mining to manufacturing to recycling. It was founded in 2012 and is based in Woburn, Massachusetts.

SES AI

Turkey-based reinforcement technology company Kordsa , which claims to cover one out of every three tyres manufactured worldwide , has entered into a collaboration with German connected electronic products and systems firm SES .

Kordsa cooperates with SES for RFID tags for tyres

TRB Lightweight Structures is a manufacturing and engineering company, specializing in lightweight composite products.

TRB Lightweight Structures

TotalEnergies (EPA: TTE) operates as a multi-energy company. The company's main offerings include the production and marketing of a variety of energies such as oil and biofuels, natural gas, and green gases, as well as renewables and electricity. It primarily serves the global energy market. It was formerly known as Total. It was founded in 1924 and is based in Paris, France.

TotalEnergies

Continental (FWB: CON) develops technologies and services for the sustainable and connected mobility of people and their goods. It specializes in manufacturing tires, brake systems, interior electronics, automotive safety, powertrain and chassis components, tachographs, and other parts for the automotive and transportation industries. The company was founded in 1871 and is based in Hanover, Germany.

Continental

Grant

Kordsa is a Turkey-based manufacturer of industrial nylon and polyester yarn, tire cord fabric and single end cord.

Name	Work History	Title	Status
Ibrahim Ozgur Yildirim		Chief Executive Officer	Current
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