Corporate Governance

Corporate Values

At Arçelik, we base our corporate management on the values of accountability, responsibility, openness, transparency, and equality. Our corporate values lead the way of establishing a sound and reliable relationship with our business environment and help strengthen the affiliation of our stakeholders. In line with our corporate values, we take necessary measures to ensure equality within the organization and among external stakeholders.

The Board of Directors

At Arçelik, the highest management body is the Board of Directors (BoD). The main responsibility of the BoD is to make strategic evaluations of the company’s activities and discuss the developments that take place in between the ordinary meetings.

Sustainability Governance

Integration of sustainability as a business model strategy with a focus on stakeholder capitalism is an integral part of value creation for Arçelik. Thus, sustainability is embedded in the Company’s strategies at various levels of governance starting from the highest level.

At BoD level, a Board Member - who is also Koç Holding Consumer Durables’ President - has been tasked with reporting the sustainability-related issues, including climate risks, to the BoD three times a year.

Sustainability activities are managed by the Chief Sustainability, Quality & Customer Care Officer. The Chief Sustainability, Quality & Customer Care Officer is the Company’s highest ranking individual responsible for assessing and managing sustainability-related strategies, risks and opportunities.

There are also C-level committees that oversee sustainability topics: The Sustainability Council (SC), Global Ethics Committee and Human Rights Committee.

Sustainability Risk Management

Arçelik identifies its sustainability-related risks and opportunities by following global, regional, and sectoral trends and analyses, climate scenarios and stakeholder feedback. Arçelik defines, quantifies and categorizes its material sustainability-related risks and opportunities in line with International Sustainability Standards Board (ISSB) Framework according to their potential impact and perceived likelihood.

Being a company that places sustainability at the heart of its strategy, it is essential for Arçelik to integrate the risks arising from the climate crisis and other sustainability topics into the ERM system to execute the relevant action plans in line with the Company’s Net Zero 2050 and corporate sustainability strategy.

Sustainability-Linked Executive Compensation

In order to ensure effective implementation of the Company’s sustainability strategy, the sustainabilityrelated KPIs determined based on Arçelik's material topics are included in the C and D-level executives' as well as relevant business unit managers' and related expert employees' annual performance evaluation score cards.These KPIs are linked to annual compensation and bonuses as incentives.

Policy Influence

Arçelik works in collaboration with all public bodies, NGOs, trade associations and other related organizations or institutions in the advancement of the proposed legislation and/or other related regulations which may affect legitimate business interests that are compatible with international human rights legislation and the Paris Agreement. While working with these related bodies, it is of utmost importance that the policies of the Trade and Industry Associations and all other stakeholders in which Arçelik is a member comply with the UN Guiding Principles on Business and Human Rights as well as the Paris Agreement and its climate change policy to keep global warming limited to 1.5 degrees.