Migros Ticaret A.Ş.

1. Purpose
For the purpose of leaving a healthier and more livable environment to future generations, we place importance on keeping environmental impact under control in order for the more productive and efficient use of resources. Through our projects, we carry our social sensitivity and responsibility to future generations as an environmentally friendly company.

2. Our Activities
One of the main goals of our operations is to protect environmental sustainability. Migros has a ISO 14001 Environmental Management Systeme Certificate. In this scope all of our environmental activities and risks are managed according to their environmental aspect and impact assessment procedures.

Our environmental management vision includes the continuous management of environmental impacts, working towards the improvement of biodiversity, establishing cooperation with suppliers to manage impacts throughout the value chain and conducting a variety of projects and campaigns to increase public awareness.

The Migros Environmental Policy sets forth that we will move forward together with our stakeholders to develop environmental awareness, to protect the environment and keep the needs of future generations a priority in order to leave them a clean environment.

3. Management
Sustainability is the responsibility of all Migros employees. This responsibility is distributed both top down and bottom up.

The Migros Board of Directors is responsible for determining strategic approaches to sustainability issues like climate change, the environment, biodiversity, human rights, occupational health and safety, governance and business ethics, responsible work applications and public development.

The Migros General Manager is responsible for implementing the strategies that are determined by the Board of Directors. The Migros General Manager carries out this responsibility with a team of senior level administrators. All senior level administrators distribute the sustainability responsibilities to their teams through specified goals.

3.1 Sustainability Committee
Migros has formed the Migros Sustainability Committee which is a separate organ formed with the participation of administrators that represent all of the main functions of the company under the chairmanship of the Human Resources, Industrial Relations Assistant General Manager and includes representatives from senior management. The Committee works to bring to life projects to improve the integration of sustainability across Migros and to enhance the sustainability performance of Migros in order to respond to its stakeholders’ expectations The Migros Sustainability Committee monitors and analyses sustainability issues concerning risks and opportunities that may impact Migros’s assets and operational and commercial activities; determines the indicators that will be used in monitoring performance, conducts projects to realize performance goals and reports results to the General Manager and senior management. The performance that is achieved in sustainability has become part of the corporate performance evaluation system.

Our Company’s Sustainability Committee audits and monitors the efficiency of our environmental policy on a yearly basis by obtaining information from the department supervisors. Our company’s environmental policy is known and embraced by all of our employees. The supervisors of all departments that are on the Sustainability Committee make sure that employees follow the Company’s environmental policy in practice. These sub units make it easier for the policy to be conveyed, for training programs, internal audits as well as for environmental goals to be determined and performance monitored.

3.2 Stakeholder Integration
As Migros, we give all our employees, customers, suppliers and all other stakeholders the opportunity to be involved in our environmental work in order to form a value chain. With the waste collection and recycling projects we conduct at our stores we raise customer awareness and with the quality inspections we subject our supplier to, we question the environmental impacts that result from operations and require improvement from suppliers who do not meet our expectations.

3.3 Education
We convey the Migros Environmental Policy to all our employees and people under the responsibility of our organization. By training all our employees on environmental issues, we are committed to raising awareness regarding environmental responsibility amongst all our employees and to communicating with our stakeholders and sharing information as necessary.

4. Measuring Environmental Impact
We constantly monitor the environmental impacts of our operations, keep them under control and reduce them to comply with environmental laws.

Migros shapes it sustainability work and goals in the scope of climate change and water management according to international norms, national regulations, UN Sustainability Development Goals and the commitments and principles of the Consumer Goods Forum (CGF).

4.1 Protecting Biodiversity
Migros places great importance on environmental protection work. All of our operations are in urban areas and are authorized by public authorities. We have no units operating on land and wetland areas with high biodiversity. As a result, there has been no negative impact reported from our operations on water sources, soil or natural habitats.

In 1992, Turkey signed the Convention on Biological Diversity developed by the United Nations Environment program, approved it in 1996 and began implementing it in our country in 1997.

The main issues that the Convention on Biological Diversity focuses on are;

Protection of biodiversity;
The sustainable use of biological sources;
The fair and equal sharing of benefits resulting from the use of genetic sources.

As a signatory of this contract, all of the legal permits issued by the government include the subject of biodiversity. As Migros we only open our stores after all of the legal permits and licenses have been obtained. In this context our stores are only allowed to be opened after all environmental assessments have been made.

4.2 Development of Projects to Reduce Greenhouse Gases
As an environmentally friendly company we strive to reduce greenhouse gas emissions in our business activities.

In line with this policy, we focus on making improvements to our cooling gas systems, energy efficiency and the efficient use of resources. We develop projects to control and reduce greenhouse gas emissions to help combat climate change.

4.3 Waste Management
We work to protect natural resources and undertake recycling. We encourage “reduction, reuse and recycling” across our business.

In line with our zero waste goal, we work to treat and dispose of all waste generated from our operations, convert it to energy so that it can be used again in our economy. We aim to reduce waste at source and make sure that natural resources are used efficiently.

Taking into account the Food Recycling Hierarchy, we conduct various projects to reduce food loss and waste, including monitoring, categorization, and analyses and improvement studies.

4.4 Water Management
We, at Migros, work to achieve water efficiency in all of our operations as part of our environmental sensitivity to protect natural resources.

We are aware of the critical importance of water in terms of human health and as Migros we place great importance on providing our employees and all of our stakeholders with clean water in line with how much we value human rights.

Throughout Migros water is used in the stores, the General Headquarters, branch directorships, distribution centers, produce warehouses and the MIGET and Gebze Meat Production Center for employee needs and cleaning.

Making sure water is used efficiently and our efforts to prevent environmental impacts by meeting the legal requirements of waste water produced by our operations have an important place in our environmental management procedure. We follow innovative applications closely in the scope of our efficiency efforts and implement such applications in our stores, production facilities, distribution centers, General headquarters and Branch Directorships. All of the water used in our departments on a monthly basis is entered on record, tracked and reported to upper management.

Most of the water used in our operations is supplied from the municipal water mains. There is no water source that is significantly impacted by the company's use of water. The waste water in the stores is released into the sewage system.

In addition to this we monitor all positive and negative changes that could result from activities to improve our water consumption and other Migros operations and we take the necessary action.

Our company operates with the goal of reducing the 'amount of water consumed per person' and 'daily water consumption per sales square meter' and sets 5 and 10 year goals for this purpose.

While we, as Migros, continue working in compliance with all legal requirements we also work voluntarily to reduce water consumption. We raise awareness so that all of our stakeholders can improve their environmental consciousness and water consumption habits. We increase our area of impact by including our stakeholders and NGOs and by collaborating with them in our work that concerns the community.

In addition to all this, we conduct procurement processes according to Migros Responsible Sourcing Policy. Besides, environment and water are at the top of the list for items we monitor in the annual inspections we conduct with our suppliers.

We encourage our producers to do agriculture in accordance with the procedures and principles of Good Agricultural Practices (GAP) in order to reduce water consumption during the production of fruits and vegetables and prevent the depletion of the water resources.

5. Auditing of Suppliers
In order to improve sustainability over the life cycle of our products, we place importance on the improved performance of suppliers and therefore the protection of biodiversity.

6. Reporting
As Migros, we disclose the scope and results of our environmental management system activities to the public every year.

In order to support constant improvement, ensure periodic review and take precautionary measures we implement an environmental management system. We base this on the ISO 14001 Environmental Management System Standard.

We have been reporting our CO2 emissions to the international organization called CDP (Carbon Disclosure Project) which motivates companies to disclose their environmental impact since 2014.

With our work in sustainability, Migros has been the one and only brand from the retail sector to be included in the “BİST Sustainability Index” since 2014.

Migros Ticaret A.Ş. last modified date: 08.01.2018