ENVIRONMENTAL AND SUSTAINABILITY POLICY

Within the scope of supporting sustainable development and the green transition, measuring, evaluating, and managing all economic, environmental, and social impacts arising from our sustainability practices is a top governance priority for Sabah Bedding. As Sabah Bedding, we carefully conduct the analysis, monitoring, and management of the economic, environmental, and social impacts and risks created throughout the value chain of our national and global operations.

By placing sustainability at the core of our business strategies, we are committed to contributing to our country’s sustainable development, reducing the economic, environmental, and social impacts of our operational activities, minimizing related risks, creating lasting value for our stakeholders, and leaving a sustainable world for future generations.

Our Sustainability Policy was published in 2022 with the approval of our Board of Directors and revised in 2023. The policy is regularly reviewed by our Sustainability Committee, taking into account current requirements and changes in our operational conditions. Updates and revisions, recommended by the Sustainability Committee and approved by the Chairman of the Board, are reflected in the policy. Our Sustainability Policy is accessible to all stakeholders via our corporate website and to all employees through our corporate intranet system, QDMS.

Sabah Bedding, with its commitment to "leaving a clean and livable world for future generations," has set the protection of the environment, the efficient and conscious management of resource use, and the reduction of waste as its primary objectives under the "Protect the Planet" component. In line with the purpose and context of our community’s environmental goals, we continuously improve our environmental management system across our entire value chain to reduce the environmental impact of our activities and enhance environmental management performance.

Management and Strategy

• We integrate our management approach, operational activities, and future goals with the UN Sustainable Development Goals, relevant sub-targets, and the achievements of the EU Green Deal. By working in line with international corporate sustainability principles and taxonomies, we aim to comply with global sustainability standards and ESG criteria.
• We strive to elevate our sustainability performance to the highest level, aligning it with our vision, mission, and values.
• We define, monitor, and execute all our sustainability initiatives effectively, transparently, and inclusively through the democratic decision-making processes of our Sustainability Committee, which has direct representation and voting rights on our Board of Directors. Actions related to our sustainability focus areas are carried out by sub-working groups.
• To align our reporting activities with international standards set by global trade and financial markets, ensure compliance with ESG criteria, and maximize our corporate sustainability performance, we regularly conduct periodic sustainability reporting across our value chain. We aim to meet international sustainability standards by presenting our reports for stakeholder evaluation through active communication channels.
• We carry out initiatives to ensure that our policy is understood and adopted by our stakeholders and employees, working to raise awareness and sensitivity.

Environmental Management

• We aim to protect natural resources, use them efficiently, increase recycling and recovery within the zero-waste approach, minimize waste, and reduce negative environmental impacts.
• In line with our country's 2050 net-zero emission target, green development vision, and circular economy principles, we plan to increase our investments in energy/resource efficiency, renewable energy, recycling, and recovery.
• As part of the Net-Zero Emission and 1.5°C target, we calculate the carbon footprint of our products and conduct life cycle analyses. We implement carbon-neutralization efforts to reduce the climate impact of our products.
• We aim to continuously monitor our energy consumption, use technologies and practices that enhance energy efficiency, and reduce our carbon footprint by implementing energy-saving systems across all our facilities.
• We are committed to continuously monitoring and reporting greenhouse gas emissions from our activities to reduce them. In line with emission reduction targets set according to national and international standards, we develop strategies to minimize emissions through energy efficiency, renewable energy use, and operational improvements.
• To prevent air pollution, we implement emission control technologies in our production processes and prepare emission reports in compliance with legal requirements. We aim to monitor and effectively manage emissions resulting from our activities.
• We take necessary precautions to prevent leakage and spillage risks during the storage, transportation, and disposal of chemicals.
• We are working to reduce water consumption, increase water efficiency, and decrease water usage. To optimize our water consumption, we implement water efficiency measures and conduct awareness campaigns to educate our employees about responsible water use.
• Within the framework of sustainable packaging management, we are working to reduce the amount of packaging waste generated by our products, decrease the weight of packaging materials, and increase recycling rates.
• Through our sustainable investments, we adopt a growth strategy focused on green transformation while working to reduce the economic, environmental, and social impacts and risks arising from our operational activities. Our goal is to promote environmentally and socially responsible production and encourage sustainable consumption.
• From the design stage onward, we work to incorporate energy-efficient and environmentally friendly technologies into all processes to mitigate the effects of climate change.
• We aim to increase the use of sustainable and recycled materials in our production processes, and we select the materials used in our products in accordance with customer health and safety standards.
• We take necessary precautions to prevent potential environmental pollution from our activities from reaching receiving environments (water, air, soil) and carry out efforts to prevent environmental pollution.
• In line with our goal of efficient resource use and zero waste, we support sustainable forest management and take steps to reduce plastic usage. Additionally, by developing environmentally friendly and low-emission products, we place combating marine pollution at the core of our business.
• In our investment processes, we assess environmental impacts and strive to manage our investments in an environmentally responsible manner.
• We aim to reduce air pollution by using low-emission vehicles in company transportation and logistics activities or by encouraging alternative transportation options.
• We are committed to collaborating with relevant parties within the scope of the environmental management system across all areas of our operations, continuously improving environmental performance, and working jointly to achieve our sustainability goals.
• We are committed to minimizing the impact of our operations on biodiversity by prioritizing the protection of natural habitats, managing ecosystems sustainably, and taking necessary measures to reduce negative environmental impacts.
• We are committed to monitoring the environmental performance of all our operational areas, continuously improving it, and periodically reporting the progress made.

Social Responsibility and Ethics

• We are committed to developing social responsibility projects that support sustainable development, aiming to create added value for society.
• With approaches that respect human rights, promote inclusivity, diversity, participation, fairness, and equal opportunity, we aim to raise sustainability awareness not only among our employees but also among our suppliers, customers, and all stakeholders.
• Sabah Bedding fully respects employees' freedom of association and their right to unionize. The company does not, in any way, obstruct employees' rights to form or join a union, nor does it interfere with these processes.
• Prioritizing employee satisfaction, we provide an inclusive working environment that respects human rights, encourages participation, supports diversity, and offers fair and equal opportunities. In line with our ethical principles, we strictly reject all forms of discrimination. Additionally, we aim to contribute to employee success through a fair reward and performance system.
• We adhere to national, international, and industry regulations regarding Occupational Health and Safety, and we implement necessary measures to provide a healthy and safe workplace for our employees. Additionally, we conduct regular training and informational activities to raise awareness among our employees.
• We organize training programs to instill environmental awareness in our employees and increase their sense of environmental responsibility.
• We prioritize stakeholder engagement and the needs and expectations of our consumers/customers, aiming to maintain the highest level of consumer/customer satisfaction.
• We make sustainability a criterion in the selection of our suppliers, demonstrating a respectful, fair, honest, transparent, and impartial approach to human rights.
• We integrate the concepts of sustainability and green transformation into our corporate culture and work to extend these values across our entire value chain.

Risk Management and Compliance

• We integrate risk management holistically into all our business processes to assess financial, operational, strategic, legal, and external risks.
• We are committed to complying with the environmental regulations of the countries in which we operate, fulfilling obligations arising from these regulations, and adhering to the requirements of customers, suppliers, and other third parties to which we have agreed compliance. We regularly monitor this compliance at every stage of our operations and make necessary improvements.
• We do not tolerate any violations of human rights, anti-competitive behavior, bribery, or corruption within our own operations or throughout our value chain. In such cases, we act in accordance with our relevant policies.
• We closely follow innovations and developments in information security and continuously improve our processes. We prioritize the confidentiality and protection of the personal information of our employees, consumers/customers, and stakeholders, taking necessary precautions in our operations and business relationships.
• We closely follow the work of national and international sustainability initiatives and place great importance on participating in such collaboration platforms.

LEVENT SOLMAZ
CHAIRMAN OF THE BOARD