Climate and Net Zero

Our Climate Transition Plan

Climate change is one of the greatest risks we face today. The 1.5°C target established by the Intergovernmental Panel on Climate Change (IPCC) and the Paris Agreement constitutes one of the cornerstones of the fight against climate change.

The IPCC is the world’s leading scientific and intergovernmental body on climate change. It was established in 1988 by the United Nations Environment Programme (UNEP) and the World Meteorological Organization (WMO). Its primary purpose is to provide governments with comprehensive, impartial and up-to-date scientific information to support the development of climate policies. While the IPCC produces the most reliable scientific data and methodologies concerning the climate crisis, the Paris Agreement is a legally binding political and legal action framework built upon this scientific foundation. The Paris Agreement was adopted on 12 December 2015 and entered into force on 4 November 2016. For the first time, countries entered into a legally binding agreement at the international level to combat climate change. Under the principle of setting progressively more ambitious targets every five years, countries submit their nationally determined contributions. Türkiye became a party to the Paris Agreement in 2021 and committed to achieving net-zero emissions by 2053. In 2025, Türkiye’s first Climate Law also entered into force, placing the 2053 net-zero target on a legal footing.

The primary objective of the Paris Agreement is to hold the increase in the global average temperature well below 2°C above pre-industrial levels and, if possible, limit it to 1.5°C. These critical thresholds were determined based on the climate tipping points and risk analyses presented in the IPCC Assessment Reports.

The IPCC and the Paris Agreement define 1.5°C as a critical threshold and call upon all stakeholders to contribute to reducing greenhouse gas emissions for the benefit of the planet and humanity.

As a signatory to the Paris Agreement, the European Union has pledged to limit global warming. To fulfil this international commitment and achieve its goal of becoming the world’s first climate-neutral continent by 2050, the European Union announced the European Green Deal in 2019. The European Green Deal provides the EU’s strategic policy framework for advancing the goals of the Paris Agreement and achieving climate neutrality by 2050. As the European Union is Türkiye’s largest trading partner, alignment with the European Green Deal has become inevitable for our country.

Adapting to all these developments and to national and international regulations and practices, as well as taking the necessary actions swiftly, is of strategic importance to our Company, which has an export-oriented sales portfolio.

Taking the necessary action to address the climate crisis and its impacts, and monitoring the implementation of such action, are among our highest priorities. Within the framework of the sustainability approach that we have placed at the core of our operations, we shape our corporate principles in the sector in which we operate from a sustainability perspective. In this context, we address our sustainability and business strategies as an integrated whole and position sustainability as an integral part of our corporate culture.

Our Company recognises its responsibilities and places the fight against the climate crisis at the heart of all its business strategies and operations. We assess the need for change and transformation arising from climate change from the broadest possible perspective.

Sustainability and Green Transformation are among our Company’s key objectives. Initiatives aimed at achieving these objectives are carried out under the oversight of our Executive Board. Our progress towards achieving these objectives is assessed, and performance against the targets is monitored.

At Tatmetal, we shape our climate transition plan, emission reduction targets and investment strategy in line with a 1.5°C-aligned reduction pathway and our objective of achieving net-zero emissions by 2050 at the latest.

In all our investments, we give preference to environmentally responsible and energy-efficient technologies and do not invest in technologies that use fossil fuels. We place renewable energy investments at the centre of our strategy and prioritise such investments. Our solar power plant (SPP) and wind power plant (WPP) investments are the clearest demonstration of this commitment. We have installed solar panels on all suitable roofs across our factory sites. By the end of 2025, we had reached an installed capacity of 110 MW in solar power and 65 MW in wind power. In 2026, we began generating significantly more electricity from renewable energy sources than we consume in our processes.

We address our strategic priorities for emission reduction, low-carbon products and production processes, and renewable energy investments within an integrated framework.

In addition to our renewable energy investments, we implement process-based energy-efficiency measures, including boilers that recover waste heat from our processes and energy-efficiency improvements involving motors, fans, pumps, compressors and furnace burners.

We continuously improve our energy and environmental management performance in accordance with the ISO 50001 and ISO 14001 management system standards and consider improvements in these areas to be key componentsof our emission reduction strategy.

We are committed to transitioning to low-carbon products across our entire product portfolio and throughout the full value chain. We have conducted life cycle assessments (LCAs) and documented these studies through Environmental Product Declarations (EPDs). In this way, we have scientifically measured the environmental impacts of our products across all stages, from raw material extraction to the waste stage, and transparently disclosed the results.

To establish our emission reduction commitment within a tangible and measurable framework, we have designated 2025 as our base year. Based on our independently verified 2025 greenhouse gas inventory prepared in accordance with ISO 14064-1 and the minimum reduction criterion recognised by the Science Based Targets initiative (SBTi) as aligned with a 1.5°C pathway, we commit to achieving an absolute reduction of at least 42% by 2035 compared with the base year.

In addition to this near-term target, we commit to achieving net-zero emissions by 2050 at the latest.

To support our transition plan, we integrate our efforts to comply with carbon pricing mechanisms, such as the Türkiye Emissions Trading System (TR-ETS) and the European Union’s Carbon Border Adjustment Mechanism (CBAM), into our cost management strategy and regularly assess the financial impacts of these mechanisms.

In line with our net-zero target, we continue our efforts to become a leader in our sector through our climate strategy, sustainability initiatives and emission reduction performance.