KARSAN OTOMOTİV SANAYİİ VE TİCARET A.Ş. CDP Climate Change
Questionnaire 2023 26 July 2023

Welcome to your CDP Climate Change
Questionnaire 2023

C0. Introduction
C0.1(C0.1) Give a general description and introduction to your organization.
Celebrating its 56th anniversary this year in the Turkish automotive industry, Karsan has been
manufacturing at its modern facilities its own vehicles, as well as parts for the world’s prominent
brands in the commercial vehicles sector. The company has been engaged in commercial
vehicle production since 1966, and its factory in Hasanağa in Bursa has the capacity to
manufacture up to 19,870 vehicles a year on a single shift. The Hasanağa factory is a flexible
installation that can manufacture all kinds of vehicles in the same facilities from passenger carsand heavy trucks to minivans and buses. It is located 30 km from the Bursa city center and has
been established on an area of 200,000 sqm, 90,000 sqm of which is closed space.
Karsan has been the only independent multi-brand light commercial vehicles manufacturer inTurkey for more than 50 years and the next phase for the company, powered and enabled byits business partners and licensers, is to develop bespoke versions of new and existingvehicles in order to extend its presence to all segments of cargo and passenger transportation.
Working to “develop innovative products and services from the idea to the market” and to caterto every market segment, Karsan primarily aims to strengthen its Main Manufacturer/OEM
business line. Karsan manages its whole automotive value chain from R&D and manufacturing
to marketing, sales, and after-sales activities.
Karsan produces eco-friendly Jest and Atak models under its own brand. Karsan achieved aseries of consecutive launches, introducing the e-JEST in 2018, e-ATAK in 2019, Autonomous
e-ATAK in 2021, as well as the 10m, 12m, and 18m models of the Karsan e-ATA family in thesame year. In 2022, Karsan further expanded its electric product range with the launch of the eATA HYDROGEN. This remarkable accomplishment established Karsan as the first and only
company in Europe to offer a fully electric product lineup ranging from 6 meters to 18 meters inlength. Karsan, which also produces 10-12-18 meter buses for Menarinibus also produces
Megane Sedan cars for the Renault brand as of 2022. In addition to vehicle production, Karsan
also provides industrial services in its factory located in the Organized Industrial Zone.

C0.2(C0.2) State the start and end date of the year for which you are reporting data andindicate whether you will be providing emissions data for past reporting years.
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KARSAN OTOMOTİV SANAYİİ VE TİCARET A.Ş. CDP Climate Change
Questionnaire 2023 26 July 2023

Reporting year
Start date
January 1, 2022

End date
December 31, 2022

Indicate if you are providing emissions data for past reporting years
Yes

Select the number of past reporting years you will be providing Scope 1
emissions data for
3 years

Select the number of past reporting years you will be providing Scope 2
emissions data for
3 years

Select the number of past reporting years you will be providing Scope 3
emissions data for
2 years

C0.3(C0.3) Select the countries/areas in which you operate.
TurkeyC0.4(C0.4) Select the currency used for all financial information disclosed throughout yourresponse.
TRY

C0.5(C0.5) Select the option that describes the reporting boundary for which climaterelated impacts on your business are being reported. Note that this option shouldalign with your chosen approach for consolidating your GHG inventory.
Operational control

C-TO0.7/C-TS0.7(C-TO0.7/C-TS0.7) For which transport modes will you be providing data?
Light Duty Vehicles (LDV)
Heavy Duty Vehicles (HDV)2

KARSAN OTOMOTİV SANAYİİ VE TİCARET A.Ş. CDP Climate Change
Questionnaire 2023 26 July 2023

C0.8
(C0.8) Does your organization have an ISIN code or another unique identifier (e.g.,
Ticker, CUSIP, etc.)?
Indicate whether you are able to provide a unique identifier foryour organization

Provide your unique
identifierNo

C1. GovernanceC1.1(C1.1) Is there board-level oversight of climate-related issues within yourorganization?
Yes

C1.1a
(C1.1a) Identify the position(s) (do not include any names) of the individual(s) on theboard with responsibility for climate-related issues.
Position ofindividual orcommittee

Responsibilities for climate-related issues

Board-levelcommittee

Karsan Board of Directors is responsible for sustainability management on a
strategic scale, as in all matters related to the company. Operating under the
Board of Directors, the Corporate Governance Committee is officially responsible
for supervision of the compliance with the sustainability principles on both policy
and practice level which are included in the Capital Market Board (CMB)
regulations, overseeing compliance issues and making recommendations to theBoard of Directors to improve company's sustainability priorities and program.
Since climate change and environment, smart and green mobility aspects are
officially defined as company's sustainability priorities which have direct impact on
climate-related performance including CO2 emissions arising from operations,
impacts of fuel vehicles on the climate as well as positive contributions
autonomous electrical vehicles, climate-related issues are direct responsibility of
the Corporate Governance Committee.

Chief Executive Transforming the strategic orientations drawn by the Board of Directors into
Officer (CEO)operations is the responsibility of all business units under the leadership of theCEO. This also applies to climate-related issues. The CEO also chairs
Sustainability Committee which is senior level executive body responsible forsustainability issues including the climate changed. As the most senior responsible
for the corporate performance, CEO is also engaged in climate related
performance areas such as energy use, CO2 emissions, legal compliance, climate

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KARSAN OTOMOTİV SANAYİİ VE TİCARET A.Ş. CDP Climate Change
Questionnaire 2023 26 July 2023

friendly vehicle R&D studies. For instance, manufacturing electric vehicles is a toppriority in terms of corporate strategy. Thus, adopting holistic climate strategy anddeveloping climate performance are among the top CEO priorities. Company
objectives such as manufacturing electric vehicles increasing their share,
increasing productivity through energy efficiency, material efficiency, water
management, diversification of electric vehicle product range are found in the
CEO's scorecard.

C1.1b(C1.1b) Provide further details on the board’s oversight of climate-related issues.
Frequency withwhich climaterelated issues
are a scheduled
agenda item

Governance mechanisms
into which climate-related
issues are integrated

Scheduled – allmeetings

Reviewing innovation/R&Dpriorities

Please explain

Board of Directors meets in monthly basis.
Sustainability issues including the climate risks
are discussed in the Board agenda in various
Reviewing and guiding
intervals depending on the aspect. Climate related
strategy
aspects including energy, material, water
Monitoring theconsumption are discussed in an aggregatedimplementation of amanner in all meetings as they are part of the costtransition plan
structure; all Electric Vehicle projects, R&D
Monitoring progress towards
activities and progress against objectives, mega
corporate targets
trends, risks, opportunities and forward-looking
Overseeing and guiding
aspects such as possible regulations regarding
public policy engagement
electric vehicles, carbon taxes, green financial
instruments are discussed in all Board meetings..

Scheduled – some Reviewing and guiding themeetings
risk management process
Other, please specify
Reviewing complianceagainst climate related
regulations. Reviewing
climate related annual
public disclosures andsustainability report.

Some of the aspects are discussed by the Board
in a scheduled time frame but not in all meetings.
These aspects are mostly time specific. For
instance, compliance studies regarding
Sustainability Principles Framework of the CapitalMarkets Board are conducted once a year. In the
Spring meetings Board discusses level ofcompliance to the Sustainability Principles
Framework which also contains climate related
principles from policy to practice. Karsan
publishes its annual sustainability report yearly,
generally in the 3rd Quarter. Thus, Corporate
Governance Committee of the Board reviews thereport to be published in its meeting. Early
Detection of Risk Committee of the Board
discusses climate and environment related risks
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KARSAN OTOMOTİV SANAYİİ VE TİCARET A.Ş. CDP Climate Change
Questionnaire 2023 26 July 2023

(including product risks) in their meetings once a
year.

C1.1d
(C1.1d) Does your organization have at least one board member with competence on
climate-related issues?
Board member(s) have competence on climate-related issues
Row 1

Not assessed

C1.2(C1.2) Provide the highest management-level position(s) or committee(s) withresponsibility for climate-related issues.

Position or committee
Chief Executive Officer (CEO)Climate-related responsibilities of this position
Managing major capital and/or operational expenditures related to low-carbon products
or services (including R&D)
Managing climate-related acquisitions, mergers, and divestitures
Integrating climate-related issues into the strategy
Setting climate-related corporate targets
Monitoring progress against climate-related corporate targets
Managing value chain engagement on climate-related issues
Assessing climate-related risks and opportunities

Coverage of responsibilities

Reporting line
Reports to the board directly

Frequency of reporting to the board on climate-related issues via thisreporting line
More frequently than quarterly

Please explain

Position or committee
Sustainability committee

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KARSAN OTOMOTİV SANAYİİ VE TİCARET A.Ş. CDP Climate Change
Questionnaire 2023 26 July 2023

Climate-related responsibilities of this position
Managing annual budgets for climate mitigation activities
Managing major capital and/or operational expenditures related to low-carbon products
or services (including R&D)
Implementing a climate transition plan
Integrating climate-related issues into the strategy
Conducting climate-related scenario analysis
Managing public policy engagement that may impact the climate
Managing climate-related risks and opportunities

Coverage of responsibilities

Reporting line
Corporate Sustainability/CSR reporting line

Frequency of reporting to the board on climate-related issues via thisreporting line
Quarterly

Please explain

Position or committee
Other, please specify
Environment, Health and Safety Administrator

Climate-related responsibilities of this position
Managing annual budgets for climate mitigation activities
Managing major capital and/or operational expenditures related to low-carbon products
or services (including R&D)
Managing climate-related acquisitions, mergers, and divestitures
Developing a climate transition plan
Implementing a climate transition plan
Conducting climate-related scenario analysis
Monitoring progress against climate-related corporate targets
Managing public policy engagement that may impact the climate
Managing value chain engagement on climate-related issues
Managing climate-related risks and opportunities

Coverage of responsibilities

Reporting line
Corporate Sustainability/CSR reporting line

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KARSAN OTOMOTİV SANAYİİ VE TİCARET A.Ş. CDP Climate Change
Questionnaire 2023 26 July 2023

Frequency of reporting to the board on climate-related issues via thisreporting line
Not reported to the board

Please explain

Position or committee
Other, please specify
Sustainability Working Group

Climate-related responsibilities of this position
Managing annual budgets for climate mitigation activities
Managing major capital and/or operational expenditures related to low-carbon products
or services (including R&D)
Developing a climate transition plan
Implementing a climate transition plan
Conducting climate-related scenario analysis
Managing value chain engagement on climate-related issues
Managing climate-related risks and opportunities

Coverage of responsibilities

Reporting line
Corporate Sustainability/CSR reporting line

Frequency of reporting to the board on climate-related issues via thisreporting line
Not reported to the board

Please explain

Position or committee
Chief Operating Officer (COO)

Climate-related responsibilities of this position
Managing annual budgets for climate mitigation activities
Managing major capital and/or operational expenditures related to low-carbon products
or services (including R&D)
Developing a climate transition plan
Implementing a climate transition plan
Setting climate-related corporate targets
Monitoring progress against climate-related corporate targets

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KARSAN OTOMOTİV SANAYİİ VE TİCARET A.Ş. CDP Climate Change
Questionnaire 2023 26 July 2023

Assessing climate-related risks and opportunities

Coverage of responsibilities

Reporting line
CEO reporting line

Frequency of reporting to the board on climate-related issues via thisreporting line
More frequently than quarterly

Please explain

Position or committee
Chief Financial Officer (CFO)

Climate-related responsibilities of this position
Managing annual budgets for climate mitigation activities
Managing climate-related acquisitions, mergers, and divestitures
Providing climate-related employee incentives
Monitoring progress against climate-related corporate targets
Assessing climate-related risks and opportunities

Coverage of responsibilities

Reporting line
CEO reporting line

Frequency of reporting to the board on climate-related issues via thisreporting line
Quarterly

Please explain

C1.3(C1.3) Do you provide incentives for the management of climate-related issues,
including the attainment of targets?
Provide incentives for the Comment
management of climaterelated issues
Row Yes1

We provide both monetary and non-monetary incentives to bothmanagers and all employees for their initiatives which support
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KARSAN OTOMOTİV SANAYİİ VE TİCARET A.Ş. CDP Climate Change
Questionnaire 2023 26 July 2023

the company's progress in terms of in managing climate-relatedrisks and opportunities.

C1.3a(C1.3a) Provide further details on the incentives provided for the management ofclimate-related issues (do not include the names of individuals).

Entitled to incentive
Chief Executive Officer (CEO)Type of incentive
Monetary reward

Incentive(s)Other, please specify
Internal company award, internal team of the month recognition

Performance indicator(s)Achievement of climate transition plan KPIIncentive plan(s) this incentive is linked to
Both Short-Term and Long-Term Incentive Plan

Further details of incentive(s)Explain how this incentive contributes to the implementation of yourorganization’s climate commitments and/or climate transition plan
Targets regarding reduction of energy use, increasing efficiency and reduction climaterelated impact of vehicles such as GHG emissions, fuel consumption, electrification andincreasing market share of electric vehicles are found in the scorecard of the CEO.
Performance against these targets result in monetary incentive.

Entitled to incentive
Chief Operating Officer (COO)Type of incentive
Monetary reward

Incentive(s)Other, please specify
Internal company award, internal team of the month recognition

Performance indicator(s)Achievement of climate transition plan KPI9KARSAN OTOMOTİV SANAYİİ VE TİCARET A.Ş. CDP Climate Change
Questionnaire 2023 26 July 2023

Incentive plan(s) this incentive is linked to
Both Short-Term and Long-Term Incentive Plan

Further details of incentive(s)Explain how this incentive contributes to the implementation of yourorganization’s climate commitments and/or climate transition plan
Targets regarding reduction of energy use, increasing efficiency are found in the scorecard of the COO. Performance against these targets result in monetary incentive.

Entitled to incentive
Other C-Suite Officer

Type of incentive
Monetary reward

Incentive(s)Other, please specify
Internal company award, internal team of the month recognition

Performance indicator(s)Achievement of climate transition plan KPIIncentive plan(s) this incentive is linked to
Both Short-Term and Long-Term Incentive Plan

Further details of incentive(s)Explain how this incentive contributes to the implementation of yourorganization’s climate commitments and/or climate transition plan
Targets regarding increasing market share of electric vehicles are found in thescorecard of the all C-suite executive. Performance against these targets result inmonetary incentive.

Entitled to incentive
Facilities manager

Type of incentive
Monetary reward

Incentive(s)Other, please specify
Internal company award, internal team of the month recognition

Performance indicator(s)10KARSAN OTOMOTİV SANAYİİ VE TİCARET A.Ş. CDP Climate Change
Questionnaire 2023 26 July 2023

Achievement of climate transition plan KPIIncentive plan(s) this incentive is linked to
Both Short-Term and Long-Term Incentive Plan

Further details of incentive(s)Explain how this incentive contributes to the implementation of yourorganization’s climate commitments and/or climate transition plan
In line with World Class Manufacturing - Energy, Cost Deployment and Environment
Pillar activities and scoring system, energy efficiency and consequent GHG emission
reduction targets and projects are found in the personal scorecard of facilities manager.
Performance against these targets result in monetary incentive.

Entitled to incentive
Other, please specify
Environment, Health and Safety Administrator

Type of incentive
Monetary reward

Incentive(s)Other, please specify
Internal company award, internal team of the month recognition

Performance indicator(s)Achievement of climate transition plan KPIEnergy efficiency improvement
Increased share of low-carbon energy in total energy consumption
Reduction in total energy consumption
Increased supplier compliance with a climate-related requirement
Increased value chain visibility (traceability, mapping, transparency)
Company performance against a climate-related sustainability index (e.g., DJSI, CDP
Climate Change score etc.)

Incentive plan(s) this incentive is linked to
Both Short-Term and Long-Term Incentive Plan

Further details of incentive(s)Explain how this incentive contributes to the implementation of yourorganization’s climate commitments and/or climate transition plan
In line with World Class Manufacturing - Energy, Cost Deployment and Environment
Pillar activities and scoring system, energy efficiency and consequent GHG emission
reduction targets and projects are found in the personal scorecard of Environment,

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KARSAN OTOMOTİV SANAYİİ VE TİCARET A.Ş. CDP Climate Change
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Health and Safety Administrator and our team member. Performance against thesetargets result in monetary incentive.

Entitled to incentive
All employeesType of incentive
Monetary reward

Incentive(s)Other, please specify
Internal company award, internal team of the month recognition

Performance indicator(s)Achievement of climate transition plan KPIIncentive plan(s) this incentive is linked to
Short-Term Incentive Plan

Further details of incentive(s)Explain how this incentive contributes to the implementation of yourorganization’s climate commitments and/or climate transition plan
All employees can submit their suggestions and improvement actions (Kaizen) relatedwith energy efficiency and GHG reduction within Karsan Suggestion/Kaizen System.
Each positive suggestion and all best Kaizens are rewarded separately with monetary
incentives.

Entitled to incentive
All employeesType of incentive
Non-monetary reward

Incentive(s)Internal company award
Internal team/employee of the month/quarter/year recognition

Performance indicator(s)Achievement of climate transition plan KPIIncentive plan(s) this incentive is linked to
Both Short-Term and Long-Term Incentive Plan

Further details of incentive(s)12KARSAN OTOMOTİV SANAYİİ VE TİCARET A.Ş. CDP Climate Change
Questionnaire 2023 26 July 2023

Explain how this incentive contributes to the implementation of yourorganization’s climate commitments and/or climate transition plan
All employees can submit their suggestions and improvement actions (Kaizen) relatedwith energy efficiency and GHG reduction within Karsan Suggestion/Kaizen System. All
best Kaizens are rewarded with non-monetary incentives such as recognition in monthly
corporate magazine, personal appreciation of senior management.

C2. Risks and opportunities
C2.1(C2.1) Does your organization have a process for identifying, assessing, andresponding to climate-related risks and opportunities?
Yes

C2.1a
(C2.1a) How does your organization define short-, medium- and long-term time
horizons?
From (years) To (years) Comment
Short-term

01

Terms are defined in line with strategic plan principles.

Medium-term 1

3Terms are defined in line with strategic plan principles.

Long-term

7

Terms are defined in line with strategic plan principles.

3

C2.1b
(C2.1b) How does your organization define substantive financial or strategic impact
on your business?
The main purpose of Karsan’s governance activities is to perform Risk Management andinternal audit activities. Karsan risk management and internal audit activities
are under the roof of all business divisions and the Board of Directors. Our risk management
activities are carried out in a coordinated manner in all departments under the leadership of the
Corporate Risk Management and Internal Audit Department. The Early Detection of Risk
Committee, formed as a sub-committee of our Board of Directors, is responsible for Karsan'srisk management system and activities; The Audit Committee is responsible for the control
and evaluation of internal audit systems and activities. Our Risk Management and Internal
Audit Department performs the functional management of these processes and reports theresults to the CEO and relevant Committees. In line with our risk management activities, whileaiming to realize our strategies and targets, to define the risk correctly and to take action in thisdirection, and to minimize the risks; We use a dynamic risk management program structured
with COSO Enterprise Risk Management systematic, ISO 31000 Standard and CMB
Corporate Governance Principles. As Karsan, we recognize the importance of the concept ofinternal control, as risk management is at the core of corporate governance and internal audit.
During our internal audit activities, which constitute one of the building blocks of our risk
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KARSAN OTOMOTİV SANAYİİ VE TİCARET A.Ş. CDP Climate Change
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management model; We carry out company activities in compliance with corporate values andcommitments, policy, procedure, management standards and legal regulations. In this context,
we aim to ensure that financial, managerial and business information is recorded in an
accurate, timely and reliable manner, that the awareness and implementation level ofmanagement directives are monitored throughout the company, and that company assets areprotected against abuses.
We implement internal audit activities for risk factors that are determined and targeted to be
reduced as a result of risk assessment studies. We carry out our internal audit work, which we
design in accordance with the principles of the COSO Model and IIA Standards, on a process
and risk-based basis. The COSO internal control model we apply within the scope of risk
management is the most internationally accepted, constantly developed and updated, and themost comprehensive risk management model. Like the COSO model, we evaluate the risks
that arise in the internal audit studies we apply to protect the assets of our institution, with theirfinancial dimensions, and ensure the follow-up of the actions we take (Ref. Sustainability
Report 2022 p.22).

C2.2(C2.2) Describe your process(es) for identifying, assessing and responding to climaterelated risks and opportunities.

Value chain stage(s) covered
Direct operations
Upstream

Risk management process
A specific climate-related risk management process

Frequency of assessment
Annually

Time horizon(s) covered
Short-term
Medium-termLong-term

Description of process
Karsan conducts a multidimentional process to identify climate related risk andopportunities accordance with the Environment pillar of World Class Manufacturing.
Primary step for the identification process is Environmental Management Audit andTraining (EMAT) System. During EMAT process, we conduct a risk and opportunity
identification survey across the company by EMAT auditors who are randomly selectedfrom managerial staff. During the EMAT process we identify both minor and major risks
to be mitigated in short term and opportunities to be seize as quick wins. This process isconducted on a monthly basis mitigation success is controlled through smart KPIs andoutcomes are reported to senior management bodies. Specialty risks which can not be
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KARSAN OTOMOTİV SANAYİİ VE TİCARET A.Ş. CDP Climate Change
Questionnaire 2023 26 July 2023

identified during EMAT process, are evaluated during the annual environmental risk
assessment process which includes climate related risks and opportunities. According to
Karsan's corporate risk management methodology, outcomes of this study areevaluated by senior management review process and appropriate mitigation actions
defined. Necessary budgets are allocated during catchball meetings for each
improvement project.

C2.2a(C2.2a) Which risk types are considered in your organization's climate-related risk
assessments?
Relevance &inclusion

Please explain

Current
regulation

Relevant,
alwaysincluded

Our company is all in comply with the current related regulations like
European Green Deal. This topic closely monitored for the current
and possible future regulations. Current regulations directly relatedwith the company operations.

Emerging
regulation

Relevant,
alwaysincluded

Emerging regulations directly related with the company operations.

Technology

Relevant,
alwaysincludedTransition to low carbon technologies is a core focus for Karsan forthis reason technology risks are always including in our risk
assessment.

Legal

Not relevant,included

Legal risks are included in our corporate risk management system asa core pillar. For this reason we always including legal risk to ourassessments however we did not defined any relevant legal risk
within current risk evaluation.

MarketRelevant,
alwaysincluded

We are working in a vibrant, customer oriented and dynamic industry.
For this reason, we always evaluate market risk in our businessmodel.

Reputation

Relevant,
alwaysincluded

As a publicly traded company, reputation is directly connected to ourmarket value thus we always relevant include reputation risks to ourevaluations.

AcutephysicalRelevant,
alwaysincluded

Extreme weather events may cause hazards and product losses.
Thus it is a relevant risk for our operations and always include to ourevaluations.

Chronic
physicalRelevant,
alwaysincludedDroughts may cause underground water shortages. Thus it is arelevant risk for our operations and always include to our evaluations.

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KARSAN OTOMOTİV SANAYİİ VE TİCARET A.Ş. CDP Climate Change
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C2.3
(C2.3) Have you identified any inherent climate-related risks with the potential to havea substantive financial or strategic impact on your business?
Yes

C2.3a
(C2.3a) Provide details of risks identified with the potential to have a substantive
financial or strategic impact on your business.

Identifier
Risk 1

Where in the value chain does the risk driver occur?
Direct operations

Risk type & Primary climate-related risk driver
Current regulation
Mandates on and regulation of existing products and services

Primary potential financial impact
Increased direct costs

Company-specific description
Climate changed has a negative impact on energy and water resources which
eventually affects energy and water prices. Increase in energy and water prices would
increase production costs.

Time horizon
Medium-term

Likelihood
LikelyMagnitude of impact
Medium-low

Are you able to provide a potential financial impact figure?
Yes, a single figure estimate

Potential financial impact figure (currency)
27,000,000

Potential financial impact figure – minimum (currency)
Potential financial impact figure – maximum (currency)
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KARSAN OTOMOTİV SANAYİİ VE TİCARET A.Ş. CDP Climate Change
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Explanation of financial impact figure
Considering the indirect impact of any future restrictive legislation on energy purchasesor GHG emissions, these are mainly related to a general increase in the cost of energy
and water supply for Karsan. We assume that the direct impact of energy and water
cost is approximately 5%. Risk and potential financial impact is expected to remain
medium-low.

Cost of response to risk
75,000,000

Description of response and explanation of cost calculation
Karsan focused on energy loss savings in 2022. We achieved a total energy
improvement of 6% by saving 836 MWh/year of energy. In addition, we reduced ourenergy consumption per unit of production by 9% from 17.4 GJ/unit in 2021 to 15.8
GJ/unit. We are purchasing all our energy needs (Sustainability Report pp.87).

Comment
In order to reduce energy cost we continue our improvement energy projects.

Identifier
Risk 2

Where in the value chain does the risk driver occur?
Upstream

Risk type & Primary climate-related risk driver
Emerging regulation
Mandates on and regulation of existing products and services

Primary potential financial impact
Decreased revenues due to reduced demand for products and services

Company-specific description
Since our business model is mostly on exports. We have to comply with ever developing
EU and USA market legislation for our diesel segment products. Especially, EU
Commission's Green Deal Framework requires us to take necessary steps for transition
to lower carbon technologies both in terms of products and manufacturing processes for2030 - 2050 time horizon. In this time frame we expect that new regulation will also arise
which will be binding for us.

Time horizon
Long-term

Likelihood
Likely17

KARSAN OTOMOTİV SANAYİİ VE TİCARET A.Ş. CDP Climate Change
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Magnitude of impact
Medium-low

Are you able to provide a potential financial impact figure?
Yes, a single figure estimate

Potential financial impact figure (currency)
2,994,383,000

Potential financial impact figure – minimum (currency)
Potential financial impact figure – maximum (currency)

Explanation of financial impact figure
We calculated the cost of not being able to sell a vehicle for one year.

Cost of response to risk
2,500,000

Description of response and explanation of cost calculation
Financial impact figure comes from the required investment for engine and related
component development; carbon taxes costs due to emissions from production above
the limitations.

Comment

Identifier
Risk 3

Where in the value chain does the risk driver occur?
Direct operations

Risk type & Primary climate-related risk driver
Chronic physical
Changing precipitation patterns and types (rain, hail, snow/ice)Primary potential financial impact
Increased direct costs

Company-specific description
We use underground water as resource during our production time. Therefore we haveto consider the impact of climate change on water resources. We are working on
recycle and reuse alternatives to avoid running out of water resources.

Time horizon
Long-term
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KARSAN OTOMOTİV SANAYİİ VE TİCARET A.Ş. CDP Climate Change
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Likelihood
LikelyMagnitude of impact
Medium-high

Are you able to provide a potential financial impact figure?
Yes, a single figure estimate

Potential financial impact figure (currency)
1,989,000

Potential financial impact figure – minimum (currency)
Potential financial impact figure – maximum (currency)

Explanation of financial impact figure
There is a direct relationship between not being able to reach water resources and not
being able to produce for long term. So risk and potential financial impact is expected toremain medium-high.

Cost of response to risk
2,000,000

Description of response and explanation of cost calculation
The cost of a recovery plant to reuse treated water and production losses.

Comment

Identifier
Risk 4

Where in the value chain does the risk driver occur?
Upstream

Risk type & Primary climate-related risk driverTechnology
Transitioning to lower emissions technology

Primary potential financial impact
Decreased revenues due to reduced demand for products and services

Company-specific description
Currently, we use electricity and natural gas for energy during our production activities.
We aim to meet some of this energy(nearly 50%) with renewable energy and reduce ourcarbon emissions.
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KARSAN OTOMOTİV SANAYİİ VE TİCARET A.Ş. CDP Climate Change
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Time horizon
Long-term

Likelihood
More likely than not

Magnitude of impact
MediumAre you able to provide a potential financial impact figure?
Yes, a single figure estimate

Potential financial impact figure (currency)
2,994,383,000

Potential financial impact figure – minimum (currency)
Potential financial impact figure – maximum (currency)

Explanation of financial impact figure
We calculated the cost of not being able to sell a vehicle for one year.

Cost of response to risk
75,000,000

Description of response and explanation of cost calculation
We calculated the cost of renewable energy technologies.

Comment

Identifier
Risk 5

Where in the value chain does the risk driver occur?
Direct operations

Risk type & Primary climate-related risk driverMarketChanging customer behavior

Primary potential financial impact
Decreased revenues due to reduced demand for products and services

Company-specific description
Market expectations are directed towards low-carbon products. Therefore, our electricvehicle investments have increased.

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KARSAN OTOMOTİV SANAYİİ VE TİCARET A.Ş. CDP Climate Change
Questionnaire 2023 26 July 2023

Time horizon
Medium-term

Likelihood
LikelyMagnitude of impact
Medium-high

Are you able to provide a potential financial impact figure?
Yes, a single figure estimate

Potential financial impact figure (currency)
2,994,383,000

Potential financial impact figure – minimum (currency)
Potential financial impact figure – maximum (currency)

Explanation of financial impact figure
We calculated the cost of not being able to sell a vehicle for one year.

Cost of response to risk
150,000,000

Description of response and explanation of cost calculation
The investment cost of producing a 50% electric vehicle

Comment

Identifier
Risk 6

Where in the value chain does the risk driver occur?
Direct operations

Risk type & Primary climate-related risk driver
Acute physicalFlood (coastal, fluvial, pluvial, groundwater)

Primary potential financial impact
Increased indirect (operating) costs

Company-specific description
Extreme weather events prevent us from producing some days per year. Also it will
damage our production lines and our technologies.

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KARSAN OTOMOTİV SANAYİİ VE TİCARET A.Ş. CDP Climate Change
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Time horizon
Long-term

Likelihood
LikelyMagnitude of impact
MediumAre you able to provide a potential financial impact figure?
Yes, a single figure estimate

Potential financial impact figure (currency)
1,000,000

Potential financial impact figure – minimum (currency)
Potential financial impact figure – maximum (currency)

Explanation of financial impact figure
Loss of production and losses due to damage to our production lines

Cost of response to risk
100,000

Description of response and explanation of cost calculation
Insurance and policy costs.

Comment

Identifier
Risk 7

Where in the value chain does the risk driver occur?
Direct operations

Risk type & Primary climate-related risk driver
Emerging regulation
Mandates on and regulation of existing products and services

Primary potential financial impact
Increased direct costs

Company-specific description
Since our business model is mostly on exports. We have to comply with ever developing
EU and USA market legislation for our diesel segment products. Especially, Adapting to22

KARSAN OTOMOTİV SANAYİİ VE TİCARET A.Ş. CDP Climate Change
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circular economy conditions will bring us new risks for the EU and the USA. In this timeframe we expect that new regulation will also arise which will be binding for us.

Time horizon
Medium-term

Likelihood
Very likely

Magnitude of impact
Medium-high

Are you able to provide a potential financial impact figure?
No, we do not have this figure

Potential financial impact figure (currency)
Potential financial impact figure – minimum (currency)
Potential financial impact figure – maximum (currency)

Explanation of financial impact figure
We calculated the cost of not being able to sell a vehicle for one year.

Cost of response to risk
2,994,383,000

Description of response and explanation of cost calculation
Financial impact figure comes from the required investment for engine and related
component development; carbon taxes costs due to emissions from production above
the limitations.

Comment

Identifier
Risk 8Where in the value chain does the risk driver occur?
Upstream

Risk type & Primary climate-related risk driver
Chronic physical
Changing temperature (air, freshwater, marine water)

Primary potential financial impact
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KARSAN OTOMOTİV SANAYİİ VE TİCARET A.Ş. CDP Climate Change
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Decreased asset value or asset useful life leading to write-offs, asset impairment or
early retirement of existing assets

Company-specific description
This may be around 7°C higher compared to average summer temperatures now, withthe potential to reach extreme temperatures as high as over 40°C with increasing
frequency based on today’s values. We expect an increase in the number of early
retirement and early incapacity reports due to the increase in temperature in the world,
where the global average temperatures are constantly breaking records. A decrease in
the number and quality of production due to the loss of qualified personnel.

Time horizon
Medium-term

Likelihood
Very likely

Magnitude of impact
Medium-high

Are you able to provide a potential financial impact figure?
No, we do not have this figure

Potential financial impact figure (currency)
Potential financial impact figure – minimum (currency)
Potential financial impact figure – maximum (currency)

Explanation of financial impact figure
The financial impact figure comes from the required investment for engine and related
component development; carbon taxes costs due to emissions from production above
the limitations.

Cost of response to risk
2,400,000

Description of response and explanation of cost calculation
A year cost of 10 people has been calculated

Comment

Identifier
Risk 924

KARSAN OTOMOTİV SANAYİİ VE TİCARET A.Ş. CDP Climate Change
Questionnaire 2023 26 July 2023

Where in the value chain does the risk driver occur?
Downstream

Risk type & Primary climate-related risk driver
Acute physicalFlood (coastal, fluvial, pluvial, groundwater)

Primary potential financial impact
Increased indirect (operating) costs

Company-specific description
The flow in the watercourses could be 50% more than now at its peak, and 80% lessthan now at its lowest. So, there will be delays in product delivery.

Time horizon
Long-term

Likelihood
LikelyMagnitude of impact
MediumAre you able to provide a potential financial impact figure?
Yes, an estimated range

Potential financial impact figure (currency)
Potential financial impact figure – minimum (currency)
1,000,000

Potential financial impact figure – maximum (currency)
10,000,000

Explanation of financial impact figure
Forecast of late delivery of 1 vehicle depending on raw material supply (for minimum).
Forecast of late delivery of 1 vehicle depending on raw material supply (for maximum).

Cost of response to risk
2,000,000

Description of response and explanation of cost calculation
The cost of a recovery plant to reuse treated water and production losses. Checking
existing environmental risk assessment to make sure low river flow used in assessment
remains valid . Reviewing and improving discharge parameters if the additional impact ispredicated upon a receiving watercourse.

Comment

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KARSAN OTOMOTİV SANAYİİ VE TİCARET A.Ş. CDP Climate Change
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Identifier
Risk 10

Where in the value chain does the risk driver occur?
Direct operations

Risk type & Primary climate-related risk driver
Reputation
Increased stakeholder concern or negative stakeholder feedback

Primary potential financial impact
Increased indirect (operating) costs

Company-specific description
Storms could see a change in frequency and intensity. The unique combination ofincreased wind speeds, increased rainfall, and lightning during these events provides
the potential for more extreme storm impacts. So, there will be delays in productdelivery.

Time horizon
Long-term

Likelihood
LikelyMagnitude of impact
MediumAre you able to provide a potential financial impact figure?
Yes, an estimated range

Potential financial impact figure (currency)
Potential financial impact figure – minimum (currency)
1,000,000

Potential financial impact figure – maximum (currency)
10,000,000

Explanation of financial impact figure
Forecast of late delivery of 1 vehicle depending on raw material supply (for minimum).
Forecast of late delivery of 1 vehicle depending on raw material supply (for maximum).

Cost of response to risk
22,000,000

Description of response and explanation of cost calculation

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KARSAN OTOMOTİV SANAYİİ VE TİCARET A.Ş. CDP Climate Change
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Reviewing the design of vulnerable structures and buildings. Reviewing wind loading
calculations, and providing reinforcement if necessary. Maintaining building integrity andensuring timely maintenance and repairs.

Comment

C2.4(C2.4) Have you identified any climate-related opportunities with the potential to havea substantive financial or strategic impact on your business?
Yes

C2.4a
(C2.4a) Provide details of opportunities identified with the potential to have asubstantive financial or strategic impact on your business.

Identifier
Opp1

Where in the value chain does the opportunity occur?
Direct operations

Opportunity type
Energy source

Primary climate-related opportunity driver
Use of supportive policy incentives

Primary potential financial impact
Returns on investment in low-emission technology

Company-specific description
We increase our use of recycled materials on the vehicle by complying End of Life
Vehicle Directive (ELV). In this way we produce low carbon vehicles.

Time horizon
Short-term

Likelihood
LikelyMagnitude of impact
MediumAre you able to provide a potential financial impact figure?
No, we do not have this figure
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KARSAN OTOMOTİV SANAYİİ VE TİCARET A.Ş. CDP Climate Change
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Potential financial impact figure (currency)
Potential financial impact figure – minimum (currency)
Potential financial impact figure – maximum (currency)

Explanation of financial impact figure
We see it as an important opportunity to sell our vehicles, especially in the EU market.

Cost to realize opportunity

Strategy to realize opportunity and explanation of cost calculation
We anticipate a 10% increase for vehicle costs.

Comment

Identifier
Opp2

Where in the value chain does the opportunity occur?
Upstream

Opportunity type
Products and services

Primary climate-related opportunity driver
Development of new products or services through R&D and innovation

Primary potential financial impact
Increased revenues through access to new and emerging markets

Company-specific description
The fact that electric vehicles have a much more compact structure compared tohydrocarbon fueled vehicles allows many vehicles to be produced on the same platform
thanks to their modular platform structures. This creates a huge advantage in theautomotive industry in terms of diversity, quality and production efficiency which helps toreduce GHG emissions.

Time horizon
Medium-term

Likelihood
Very likely

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KARSAN OTOMOTİV SANAYİİ VE TİCARET A.Ş. CDP Climate Change
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Magnitude of impact
Medium-high

Are you able to provide a potential financial impact figure?
No, we do not have this figure

Potential financial impact figure (currency)
Potential financial impact figure – minimum (currency)
Potential financial impact figure – maximum (currency)

Explanation of financial impact figure
We see it as an important opportunity to sell our vehicles, especially in the EU market.

Cost to realize opportunity

Strategy to realize opportunity and explanation of cost calculation
The transition to electric vehicles especially requires the addition of new batteries andequipment to the vehicle. For this reason, we predict that our vehicle costs will increaseby 30-50%. So we don't predict to net costs.

Comment

Identifier
Opp3

Where in the value chain does the opportunity occur?
Direct operations

Opportunity type
Energy source

Primary climate-related opportunity driver
Use of supportive policy incentives

Primary potential financial impact
Returns on investment in low-emission technology

Company-specific description
We increase recyclability rate for our vehicles by complying End of Life Vehicle Directive(ELV). In this way we produce low carbon vehicles.

Time horizon
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KARSAN OTOMOTİV SANAYİİ VE TİCARET A.Ş. CDP Climate Change
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Medium-term

Likelihood
LikelyMagnitude of impact
MediumAre you able to provide a potential financial impact figure?
No, we do not have this figure

Potential financial impact figure (currency)
Potential financial impact figure – minimum (currency)
Potential financial impact figure – maximum (currency)

Explanation of financial impact figure

Cost to realize opportunity

Strategy to realize opportunity and explanation of cost calculation
We see it as an important opportunity to sell our vehicles, especially in the EU market.

Comment
We anticipate a 25% increase for vehicle costs.

Identifier
Opp4

Where in the value chain does the opportunity occur?
Direct operations

Opportunity type
Resource efficiency

Primary climate-related opportunity driver
Use of more efficient production and distribution processes

Primary potential financial impact
Reduced indirect (operating) costs

Company-specific description
We see renewable technologies as key role for low-emission vehicles. In this context,
we prepare feasibility report for solar technologies.
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KARSAN OTOMOTİV SANAYİİ VE TİCARET A.Ş. CDP Climate Change
Questionnaire 2023 26 July 2023

Time horizon
Short-term

Likelihood
Very likely

Magnitude of impact
High

Are you able to provide a potential financial impact figure?
Yes, a single figure estimate

Potential financial impact figure (currency)
17,000,000

Potential financial impact figure – minimum (currency)
Potential financial impact figure – maximum (currency)

Explanation of financial impact figure
We see it as an important opportunity to reduce carbon emission consumption for our
production line.

Cost to realize opportunity
75,000,000

Strategy to realize opportunity and explanation of cost calculation
Investment cost for establishing solar system.

Comment

Identifier
Opp5

Where in the value chain does the opportunity occur?
Direct operations

Opportunity type
Products and services

Primary climate-related opportunity driver
Development of climate adaptation, resilience and insurance risk solutions

Primary potential financial impact
Increased revenues through access to new and emerging markets

Company-specific description
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KARSAN OTOMOTİV SANAYİİ VE TİCARET A.Ş. CDP Climate Change
Questionnaire 2023 26 July 2023

We apply an internal carbon pricing system, we prevent additional carbon costs that we
may encounter in the coming period.

Time horizon
Medium-term

Likelihood
Very likely

Magnitude of impact
Medium-high

Are you able to provide a potential financial impact figure?
No, we do not have this figure

Potential financial impact figure (currency)
Potential financial impact figure – minimum (currency)
Potential financial impact figure – maximum (currency)

Explanation of financial impact figure

Cost to realize opportunity
10,800,000

Strategy to realize opportunity and explanation of cost calculation

Comment

Identifier
Opp6

Where in the value chain does the opportunity occur?
Direct operations

Opportunity type
Products and services

Primary climate-related opportunity driver
Development of new products or services through R&D and innovation

Primary potential financial impact
Increased revenues resulting from increased demand for products and services
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KARSAN OTOMOTİV SANAYİİ VE TİCARET A.Ş. CDP Climate Change
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Company-specific description
We carry out product-based carbon footprint applications from cradle to grave for all ourelectrical products.

Time horizon
Long-term

Likelihood
Virtually certain

Magnitude of impact
High

Are you able to provide a potential financial impact figure?
Yes, a single figure estimate

Potential financial impact figure (currency)
115,000,000

Potential financial impact figure – minimum (currency)
Potential financial impact figure – maximum (currency)

Explanation of financial impact figure
Since an advantage will be gained in sustainability requirements, a tender forecast for
35 vehicles has been calculated.

Cost to realize opportunity
460,000

Strategy to realize opportunity and explanation of cost calculation
Cost of software and consultant for the project.

Comment

C3. Business Strategy
C3.1(C3.1) Does your organization’s strategy include a climate transition plan that aligns
with a 1.5°C world?
Row 1
Climate transition plan33

KARSAN OTOMOTİV SANAYİİ VE TİCARET A.Ş. CDP Climate Change
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No, but our strategy has been influenced by climate-related risks and opportunities, andwe are developing a climate transition plan within two years

Explain why your organization does not have a climate transition plan thataligns with a 1.5°C world and any plans to develop one in the future
For this, we have participated in UN Global Compact Climate Ambition Accelerator,
which is carried out especially for UN Global Compact members. In this context, we arepreparing ourselves to be included in SBTi within 5 years. And we have 4 Corporate
Sustainable Specialists with accredited certificates.

C3.2(C3.2) Does your organization use climate-related scenario analysis to inform its
strategy?
Use of climate-related scenario analysis to inform strategy
Row 1

Yes, qualitative and quantitative

C3.2a(C3.2a) Provide details of your organization’s use of climate-related scenario analysis.
Climate-related Scenario analysis
scenario
coverage
Other, please specify
Nationally determined
contributions (NDCs)

Temperature
Parameters, assumptions,alignment of scenario analytical choices
Quantitaive parameters:- Sales rate of oursustainable product- Carbon emissions
consumption- Carbon emissions per
vehicle- Recycled material rate
-Recyclable rate for ourelectricity product-Energy consumption-Water consumption
Qualitative parameters;- Legal compliance- Training hours forsustainability

C3.2b(C3.2b) Provide details of the focal questions your organization seeks to address byusing climate-related scenario analysis, and summarize the results with respect tothese questions.

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KARSAN OTOMOTİV SANAYİİ VE TİCARET A.Ş. CDP Climate Change
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Row 1
Focal questions-Which KPIs does our company follow about climate change?
-Do we have a carbon neutral target?
-Do our activities take into account all processes from cradle to grave?

Results of the climate-related scenario analysis with respect to the focal
questions
In our strategic planning processes, we employ scenarios based on principles of NDC
declared by Republic of Turkey, which also refers to 2 Degrees Scenarios to be
implemented between 2021- 2030 time frame. Within this NDC several action plans
declared which have direct and indirect relations to our business strategies. For
instance, energy pillar of NGC plans for carbon emission reductions refers to anincrease in renewable energy production as well as in micro-generation, co-generationand on-site production practices which we also consider in our strategies to reduce
emissions and energy consumption and operational costs. In the industry pillar, plans
focus mainly on industry wise energy intensity reduction and incentivizing efficiency
project.
We already invest in efficiency projects which aim to reduce energy intensity of our
production. We include these projects in our strategic plans not only for their emission
reduction outcomes but also for their significant impacts on our cost structure andprocess quality towards a leaner structure. Transport pillar of the NDC generates themost significant support to our business strategy. In this pillar, implementation of moresustainable transportation approaches in urban areas and promotion of alternative fueland clean vehicles are the amongst the core actions. Since 2018 we increase our effort
to develop and produce electric and autonomous vehicles. Our business strategy
focuses on success to highlight our corporate identity as a green mobility provider byincreasing proportion of electric and alternative fuel vehicles in our total sales. In theother hand, consistency of our focus on green transportation and business model withgreen financial incentives, sustainable investment initiatives and governmental supports
which aims low carbon economy transition, create significant financial opportunities for
implementing our business strategy.

C3.3(C3.3) Describe where and how climate-related risks and opportunities haveinfluenced your strategy.
Have climate-relatedrisks andopportunities
influenced yourstrategy in this area?
Products and Yes
services

Description of influence

As Karsan, we aim to be a pioneer in the world in electricand autonomous public transportation models and todevelop customer-oriented solutions and services by
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KARSAN OTOMOTİV SANAYİİ VE TİCARET A.Ş. CDP Climate Change
Questionnaire 2023 26 July 2023

developing collaborations within the mobility ecosystem. In
this context, we started to develop electric and autonomousvehicles, which help to reduce GHG emissions, with
innovative features, and to expand our activities in the fieldof mobility services, with the work of our strategic planningand business development, marketing and R&D units. Our
efforts for green mobility also correspond with NDC declaredby Republic of Turkey and Green Deal scheme declared by
European Union.
In the short term, our goal is to expand the electric vehicle
product range from 6m to 24m, to diversify our public
transportation solutions and to offer customers the fullproduct range they may need. In the medium and long term,
our aim is to equip our entire product range withautonomous technologies and integrate it with service
segments, making Karsan a company that provides
sustainable mobility solutions and services as well as being
a vehicle manufacturer.
Supply chain Evaluation in progress
and/or value
chain

When choosing our direct product suppliers, we audit our
supplier candidates whether they meet the compliance withenvironmental aspects depending on ISO 14001. According
to our WCM strategy, in the mid-term, owe aimto implement
Green Logistic Principles and internal carbon pricing
principles which help to reduce GHG emissions, to our
supplier. We have carried out some Milk-Run and Circular
Economy applications. And we wrote 2 academic articles
indexed by SCI-Expanded journals.
In addition, with the 'Green Supply and Procurement'
Project, which is planning to start in 2023, we aim toprioritize sustainability criteria in our supply andprocurement processes as of 2024.
Moreover, we plan to calculate the rate of use of recycledmaterials in our electric vehicles in 2023. We foresee theuse of 20% or more recycled materials in our electricvehicles in 5 years.
We believe this is a good way to develop closer relations
with our suppliers and integrate them with the green
procurement project.
The project that we anticipate to start in 2023 will be a
product-based carbon footprint study of electric,autonomous and hydrogen vehicles, and we are cooperatingwith TUBITAK within the scope of this project.

Investment in Yes
R&D

The capacity to produce vehicles with low climate change
impacts, especially electric vehicles, represents the point

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KARSAN OTOMOTİV SANAYİİ VE TİCARET A.Ş. CDP Climate Change
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where risk turns into opportunity in our sector. For thisreason, the transformation of our vehicle portfolio also
constitutes an important part of our R&D and productstrategy. However, as an industrial company, we cannot
ignore our production operations in terms of their impact on
climate change.
In line with our understanding of sustainability, we act withthe logic of value chain in our R&D and innovation studies,
as well as in our other fields of activity, and we implement
innovative practices, especially digitization in production
processes, in addition to product and service development.
Our R&D work is carried out in coordination with the relevantbusiness units by our R&D Center, which was registered by
the Ministry of Industry and Trade in 2019. New technology
trends, customer demands, innovations arising from existing
projects, scientific publications are the main sources thatfeed our R&D projects. In this context, the biggest focus of
our R&D Center, which works in various fields with 58
research personnel, is to develop mobility service models
based on sustainable, environmentally friendly, electric andautonomous vehicles and disruptive technologies.
In the last five years, we have spent over 75 million TL on
R&D. As a result of these efforts, 13 of our patentapplications were accepted and we made 5 new patentapplications. At the end of our research, we developed 5
new products and we generated approximately 355 million
TL revenue from these new products.
The most important focus of our R&D work is to produce
environmentally friendly vehicles. While one part of thisfocus is to produce electric vehicles, the other part is to
reduce the emission values of existing diesel fueledvehicles. During the reporting period, we determined newtechnical specifications and conducted research on thenecessary parameters. In line with the engineering activities
we carried out as a result of our research, our suppliers also
implemented software updates. After testing the selectedengine applications on prototype vehicles, we preformed
vehicle implementations.
Operations

Yes

The fact that electric vehicles have a much more compact
structure compared to hydrocarbon fueled vehicles allows
many vehicles to be produced on the same platform thanks
to their modular platform structures. This creates a hugeadvantage in the automotive industry in terms of diversity,
quality and production efficiency which helps to reduce GHG
emissions.

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KARSAN OTOMOTİV SANAYİİ VE TİCARET A.Ş. CDP Climate Change
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The effective management of environmental impacts arisingfrom our activities is one of our mainsustainability priorities. Environmental impact management
is one of the basic elements of the WCM methodology that
we have adopted as the main working model. Therefore, we
strive to control and reduce environmental impact at every
point of our work. Environmental impacts in our production
activities include climate change and greenhouse gases,
various air gases, energy management, water consumption,material consumption, waste management and recycling.
On the other hand, environmental impacts, primarily fuelconsumption and greenhouse gas emissions, occur during
the use of the vehicles we produce.
The capacity to produce vehicles with low climate change
impacts, especially electric vehicles, represents the point
where risk turns into opportunity in our sector. For thisreason, the transformation of our vehicle portfolio also
constitutes an important part of our R&D and productstrategy. However,as an industrial company, we cannot ignore our production
operations in terms of their impact on climate change. At thispoint, energy efficiency and greenhouse gas emission
management are areas that we carefully manage.

C3.4(C3.4) Describe where and how climate-related risks and opportunities haveinfluenced your financial planning.
Financial planningelements that havebeen influenced
Row Revenues
1
Direct costs
Indirect costs
Capital expenditures
Access to capital

Description of influence

As a green mobility provider through are electric vehicles transition of
the transport market towards low-carbon vehicles, especially by EU
Green Deal action plans for European Market, offers significant
opportunities in terms of sales revenue generation.
While a transition to electric vehicle production creates additional direct
costs mainly because of battery and electronic component costs,
efforts to reduce GHG emissions arising from the production process
have a positive impact on reducing indirect costs arising from energy
consumption.
R&D and transition projects require additional capital investments toapply our carbon strategy, green financial products such as green
bonds, initiatives such as responsible investment principles, specialty
funds such as Green Climate Fund provides significant opportunities toaccess favorable financial capital.

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KARSAN OTOMOTİV SANAYİİ VE TİCARET A.Ş. CDP Climate Change
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C3.5
(C3.5) In your organization’s financial accounting, do you identify spending/revenue
that is aligned with your organization’s climate transition?
Identification of spending/revenue that is aligned with your organization’s climatetransitionRow
1No, but we plan to in the next two years

C4. Targets and performance
C4.1(C4.1) Did you have an emissions target that was active in the reporting year?
Absolute target
Intensity target

C4.1a(C4.1a) Provide details of your absolute emissions target(s) and progress madeagainst those targets.

Target reference number
Abs 1

Is this a science-based target?
No, and we do not anticipate setting one in the next two years

Target ambition

Year target was set
2019

Target coverage
Site/facility

Scope(s)Scope 1
Scope 2

Scope 2 accounting method
Location-based

Scope 3 category(ies)39

KARSAN OTOMOTİV SANAYİİ VE TİCARET A.Ş. CDP Climate Change
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Base year
2019

Base year Scope 1 emissions covered by target (metric tons CO2e)
2,521

Base year Scope 2 emissions covered by target (metric tons CO2e)
4,665

Base year Scope 3, Category 1: Purchased goods and services emissions
covered by target (metric tons CO2e)

Base year Scope 3, Category 2: Capital goods emissions covered by target(metric tons CO2e)

Base year Scope 3, Category 3: Fuel-and-energy-related activities (notincluded in Scopes 1 or 2) emissions covered by target (metric tons CO2e)

Base year Scope 3, Category 4: Upstream transportation and distribution
emissions covered by target (metric tons CO2e)

Base year Scope 3, Category 5: Waste generated in operations emissions
covered by target (metric tons CO2e)

Base year Scope 3, Category 6: Business travel emissions covered by target(metric tons CO2e)

Base year Scope 3, Category 7: Employee commuting emissions covered bytarget (metric tons CO2e)

Base year Scope 3, Category 8: Upstream leased assets emissions covered bytarget (metric tons CO2e)

Base year Scope 3, Category 9: Downstream transportation and distribution
emissions covered by target (metric tons CO2e)

Base year Scope 3, Category 10: Processing of sold products emissions
covered by target (metric tons CO2e)40

KARSAN OTOMOTİV SANAYİİ VE TİCARET A.Ş. CDP Climate Change
Questionnaire 2023 26 July 2023

Base year Scope 3, Category 11: Use of sold products emissions covered bytarget (metric tons CO2e)

Base year Scope 3, Category 12: End-of-life treatment of sold products
emissions covered by target (metric tons CO2e)

Base year Scope 3, Category 13: Downstream leased assets emissions
covered by target (metric tons CO2e)

Base year Scope 3, Category 14: Franchises emissions covered by target(metric tons CO2e)

Base year Scope 3, Category 15: Investments emissions covered by target(metric tons CO2e)

Base year Scope 3, Other (upstream) emissions covered by target (metric tons
CO2e)Base year Scope 3, Other (downstream) emissions covered by target (metrictons CO2e)

Base year total Scope 3 emissions covered by target (metric tons CO2e)

Total base year emissions covered by target in all selected Scopes (metrictons CO2e)
7,186

Base year Scope 1 emissions covered by target as % of total base year
emissions in Scope 1
85

Base year Scope 2 emissions covered by target as % of total base year
emissions in Scope 2
95

Base year Scope 3, Category 1: Purchased goods and services emissions
covered by target as % of total base year emissions in Scope 3, Category 1:
Purchased goods and services (metric tons CO2e)41

KARSAN OTOMOTİV SANAYİİ VE TİCARET A.Ş. CDP Climate Change
Questionnaire 2023 26 July 2023

Base year Scope 3, Category 2: Capital goods emissions covered by target as% of total base year emissions in Scope 3, Category 2: Capital goods (metrictons CO2e)

Base year Scope 3, Category 3: Fuel-and-energy-related activities (notincluded in Scopes 1 or 2) emissions covered by target as % of total base year
emissions in Scope 3, Category 3: Fuel-and-energy-related activities (notincluded in Scopes 1 or 2) (metric tons CO2e)

Base year Scope 3, Category 4: Upstream transportation and distribution
covered by target as % of total base year emissions in Scope 3, Category 4:
Upstream transportation and distribution (metric tons CO2e)

Base year Scope 3, Category 5: Waste generated in operations emissions
covered by target as % of total base year emissions in Scope 3, Category 5:
Waste generated in operations (metric tons CO2e)

Base year Scope 3, Category 6: Business travel emissions covered by target
as % of total base year emissions in Scope 3, Category 6: Business travel(metric tons CO2e)

Base year Scope 3, Category 7: Employee commuting covered by target as %of total base year emissions in Scope 3, Category 7: Employee commuting(metric tons CO2e)

Base year Scope 3, Category 8: Upstream leased assets emissions covered bytarget as % of total base year emissions in Scope 3, Category 8: Upstream
leased assets (metric tons CO2e)

Base year Scope 3, Category 9: Downstream transportation and distribution
emissions covered by target as % of total base year emissions in Scope 3,
Category 9: Downstream transportation and distribution (metric tons CO2e)

Base year Scope 3, Category 10: Processing of sold products emissions
covered by target as % of total base year emissions in Scope 3, Category 10:
Processing of sold products (metric tons CO2e)42

KARSAN OTOMOTİV SANAYİİ VE TİCARET A.Ş. CDP Climate Change
Questionnaire 2023 26 July 2023

Base year Scope 3, Category 11: Use of sold products emissions covered bytarget as % of total base year emissions in Scope 3, Category 11: Use of soldproducts (metric tons CO2e)

Base year Scope 3, Category 12: End-of-life treatment of sold products
emissions covered by target as % of total base year emissions in Scope 3,
Category 12: End-of-life treatment of sold products (metric tons CO2e)

Base year Scope 3, Category 13: Downstream leased assets emissions
covered by target as % of total base year emissions in Scope 3, Category 13:
Downstream leased assets (metric tons CO2e)

Base year Scope 3, Category 14: Franchises emissions covered by target as %of total base year emissions in Scope 3, Category 14: Franchises (metric tons
CO2e)Base year Scope 3, Category 15: Investments emissions covered by target as% of total base year emissions in Scope 3, Category 15: Investments (metrictons CO2e)

Base year Scope 3, Other (upstream) emissions covered by target as % of
total base year emissions in Scope 3, Other (upstream) (metric tons CO2e)

Base year Scope 3, Other (downstream) emissions covered by target as % of
total base year emissions in Scope 3, Other (downstream) (metric tons CO2e)

Base year total Scope 3 emissions covered by target as % of total base year
emissions in Scope 3 (in all Scope 3 categories)

Base year emissions covered by target in all selected Scopes as % of total
base year emissions in all selected Scopes
100

Target year
2022

Targeted reduction from base year (%)
10

43

KARSAN OTOMOTİV SANAYİİ VE TİCARET A.Ş. CDP Climate Change
Questionnaire 2023 26 July 2023

Total emissions in target year covered by target in all selected Scopes (metrictons CO2e) [auto-calculated]
6,467.4

Scope 1 emissions in reporting year covered by target (metric tons CO2e)
3,013.39

Scope 2 emissions in reporting year covered by target (metric tons CO2e)5,870.13

Scope 3, Category 1: Purchased goods and services emissions in reporting
year covered by target (metric tons CO2e)

Scope 3, Category 2: Capital goods emissions in reporting year covered bytarget (metric tons CO2e)

Scope 3, Category 3: Fuel-and-energy-related activities (not included in
Scopes 1 or 2) emissions in reporting year covered by target (metric tons
CO2e)

Scope 3, Category 4: Upstream transportation and distribution emissions inreporting year covered by target (metric tons CO2e)

Scope 3, Category 5: Waste generated in operations emissions in reporting
year covered by target (metric tons CO2e)

Scope 3, Category 6: Business travel emissions in reporting year covered bytarget (metric tons CO2e)

Scope 3, Category 7: Employee commuting emissions in reporting year
covered by target (metric tons CO2e)

Scope 3, Category 8: Upstream leased assets emissions in reporting year
covered by target (metric tons CO2e)

Scope 3, Category 9: Downstream transportation and distribution emissions
in reporting year covered by target (metric tons CO2e)

Scope 3, Category 10: Processing of sold products emissions in reporting
year covered by target (metric tons CO2e)44

KARSAN OTOMOTİV SANAYİİ VE TİCARET A.Ş. CDP Climate Change
Questionnaire 2023 26 July 2023

Scope 3, Category 11: Use of sold products emissions in reporting year
covered by target (metric tons CO2e)

Scope 3, Category 12: End-of-life treatment of sold products emissions inreporting year covered by target (metric tons CO2e)

Scope 3, Category 13: Downstream leased assets emissions in reporting year
covered by target (metric tons CO2e)

Scope 3, Category 14: Franchises emissions in reporting year covered bytarget (metric tons CO2e)

Scope 3, Category 15: Investments emissions in reporting year covered bytarget (metric tons CO2e)

Scope 3, Other (upstream) emissions in reporting year covered by target(metric tons CO2e)

Scope 3, Other (downstream) emissions in reporting year covered by target(metric tons CO2e)

Total Scope 3 emissions in reporting year covered by target (metric tons
CO2e)Total emissions in reporting year covered by target in all selected scopes(metric tons CO2e)8,883.52

Does this target cover any land-related emissions?
Yes, it covers land-related and non-land related emissions (e.g. SBT approved before
the release of FLAG target-setting guidance)% of target achieved relative to base year [auto-calculated]-236.2259949903

Target status in reporting year
Underway

Please explain target coverage and identify any exclusions

45

KARSAN OTOMOTİV SANAYİİ VE TİCARET A.Ş. CDP Climate Change
Questionnaire 2023 26 July 2023

A new product group was set up in 2022. Even though the total amount of emissions
has increased, there is a severe decrease in carbon intensity. Also, we performed
Kaizen Project for Energy Efficiency and we saved 836 MWh/year.

Plan for achieving target, and progress made to the end of the reporting year
-Preparing energy feasibility report,-Activating the internal carbon pricing system,-Optimizing newly installed lines

List the emissions reduction initiatives which contributed most to achieving
this target

Target reference number
Abs 2

Is this a science-based target?
No, and we do not anticipate setting one in the next two years

Target ambition

Year target was set
2022

Target coverage
Business activity

Scope(s)Scope 3

Scope 2 accounting method

Scope 3 category(ies)Category 1: Purchased goods and services
Category 3: Fuel-and-energy-related activities (not included in Scopes 1 or 2)
Category 11: Use of sold products

Base year
2021

Base year Scope 1 emissions covered by target (metric tons CO2e)

Base year Scope 2 emissions covered by target (metric tons CO2e)46

KARSAN OTOMOTİV SANAYİİ VE TİCARET A.Ş. CDP Climate Change
Questionnaire 2023 26 July 2023

Base year Scope 3, Category 1: Purchased goods and services emissions
covered by target (metric tons CO2e)
25.13

Base year Scope 3, Category 2: Capital goods emissions covered by target(metric tons CO2e)

Base year Scope 3, Category 3: Fuel-and-energy-related activities (notincluded in Scopes 1 or 2) emissions covered by target (metric tons CO2e)
45.01

Base year Scope 3, Category 4: Upstream transportation and distribution
emissions covered by target (metric tons CO2e)

Base year Scope 3, Category 5: Waste generated in operations emissions
covered by target (metric tons CO2e)

Base year Scope 3, Category 6: Business travel emissions covered by target(metric tons CO2e)

Base year Scope 3, Category 7: Employee commuting emissions covered bytarget (metric tons CO2e)

Base year Scope 3, Category 8: Upstream leased assets emissions covered bytarget (metric tons CO2e)

Base year Scope 3, Category 9: Downstream transportation and distribution
emissions covered by target (metric tons CO2e)

Base year Scope 3, Category 10: Processing of sold products emissions
covered by target (metric tons CO2e)

Base year Scope 3, Category 11: Use of sold products emissions covered bytarget (metric tons CO2e)
195.9

Base year Scope 3, Category 12: End-of-life treatment of sold products
emissions covered by target (metric tons CO2e)47

KARSAN OTOMOTİV SANAYİİ VE TİCARET A.Ş. CDP Climate Change
Questionnaire 2023 26 July 2023

Base year Scope 3, Category 13: Downstream leased assets emissions
covered by target (metric tons CO2e)

Base year Scope 3, Category 14: Franchises emissions covered by target(metric tons CO2e)

Base year Scope 3, Category 15: Investments emissions covered by target(metric tons CO2e)

Base year Scope 3, Other (upstream) emissions covered by target (metric tons
CO2e)Base year Scope 3, Other (downstream) emissions covered by target (metrictons CO2e)

Base year total Scope 3 emissions covered by target (metric tons CO2e)266.04

Total base year emissions covered by target in all selected Scopes (metrictons CO2e)100

Base year Scope 1 emissions covered by target as % of total base year
emissions in Scope 1

Base year Scope 2 emissions covered by target as % of total base year
emissions in Scope 2

Base year Scope 3, Category 1: Purchased goods and services emissions
covered by target as % of total base year emissions in Scope 3, Category 1:
Purchased goods and services (metric tons CO2e)
9.4

Base year Scope 3, Category 2: Capital goods emissions covered by target as% of total base year emissions in Scope 3, Category 2: Capital goods (metrictons CO2e)

Base year Scope 3, Category 3: Fuel-and-energy-related activities (notincluded in Scopes 1 or 2) emissions covered by target as % of total base year48

KARSAN OTOMOTİV SANAYİİ VE TİCARET A.Ş. CDP Climate Change
Questionnaire 2023 26 July 2023

emissions in Scope 3, Category 3: Fuel-and-energy-related activities (notincluded in Scopes 1 or 2) (metric tons CO2e)17

Base year Scope 3, Category 4: Upstream transportation and distribution
covered by target as % of total base year emissions in Scope 3, Category 4:
Upstream transportation and distribution (metric tons CO2e)

Base year Scope 3, Category 5: Waste generated in operations emissions
covered by target as % of total base year emissions in Scope 3, Category 5:
Waste generated in operations (metric tons CO2e)

Base year Scope 3, Category 6: Business travel emissions covered by target
as % of total base year emissions in Scope 3, Category 6: Business travel(metric tons CO2e)

Base year Scope 3, Category 7: Employee commuting covered by target as %of total base year emissions in Scope 3, Category 7: Employee commuting(metric tons CO2e)

Base year Scope 3, Category 8: Upstream leased assets emissions covered bytarget as % of total base year emissions in Scope 3, Category 8: Upstream
leased assets (metric tons CO2e)

Base year Scope 3, Category 9: Downstream transportation and distribution
emissions covered by target as % of total base year emissions in Scope 3,
Category 9: Downstream transportation and distribution (metric tons CO2e)

Base year Scope 3, Category 10: Processing of sold products emissions
covered by target as % of total base year emissions in Scope 3, Category 10:
Processing of sold products (metric tons CO2e)

Base year Scope 3, Category 11: Use of sold products emissions covered bytarget as % of total base year emissions in Scope 3, Category 11: Use of soldproducts (metric tons CO2e)
73.6

Base year Scope 3, Category 12: End-of-life treatment of sold products
emissions covered by target as % of total base year emissions in Scope 3,
Category 12: End-of-life treatment of sold products (metric tons CO2e)49

KARSAN OTOMOTİV SANAYİİ VE TİCARET A.Ş. CDP Climate Change
Questionnaire 2023 26 July 2023

Base year Scope 3, Category 13: Downstream leased assets emissions
covered by target as % of total base year emissions in Scope 3, Category 13:
Downstream leased assets (metric tons CO2e)

Base year Scope 3, Category 14: Franchises emissions covered by target as %of total base year emissions in Scope 3, Category 14: Franchises (metric tons
CO2e)Base year Scope 3, Category 15: Investments emissions covered by target as% of total base year emissions in Scope 3, Category 15: Investments (metrictons CO2e)

Base year Scope 3, Other (upstream) emissions covered by target as % of
total base year emissions in Scope 3, Other (upstream) (metric tons CO2e)

Base year Scope 3, Other (downstream) emissions covered by target as % of
total base year emissions in Scope 3, Other (downstream) (metric tons CO2e)

Base year total Scope 3 emissions covered by target as % of total base year
emissions in Scope 3 (in all Scope 3 categories)
37

Base year emissions covered by target in all selected Scopes as % of total
base year emissions in all selected Scopes
4.1

Target year
2022

Targeted reduction from base year (%)
3

Total emissions in target year covered by target in all selected Scopes (metrictons CO2e) [auto-calculated]
97

Scope 1 emissions in reporting year covered by target (metric tons CO2e)

Scope 2 emissions in reporting year covered by target (metric tons CO2e)50

KARSAN OTOMOTİV SANAYİİ VE TİCARET A.Ş. CDP Climate Change
Questionnaire 2023 26 July 2023

Scope 3, Category 1: Purchased goods and services emissions in reporting
year covered by target (metric tons CO2e)
25.1

Scope 3, Category 2: Capital goods emissions in reporting year covered bytarget (metric tons CO2e)

Scope 3, Category 3: Fuel-and-energy-related activities (not included in
Scopes 1 or 2) emissions in reporting year covered by target (metric tons
CO2e)
44.4

Scope 3, Category 4: Upstream transportation and distribution emissions inreporting year covered by target (metric tons CO2e)

Scope 3, Category 5: Waste generated in operations emissions in reporting
year covered by target (metric tons CO2e)

Scope 3, Category 6: Business travel emissions in reporting year covered bytarget (metric tons CO2e)

Scope 3, Category 7: Employee commuting emissions in reporting year
covered by target (metric tons CO2e)

Scope 3, Category 8: Upstream leased assets emissions in reporting year
covered by target (metric tons CO2e)

Scope 3, Category 9: Downstream transportation and distribution emissions
in reporting year covered by target (metric tons CO2e)

Scope 3, Category 10: Processing of sold products emissions in reporting
year covered by target (metric tons CO2e)

Scope 3, Category 11: Use of sold products emissions in reporting year
covered by target (metric tons CO2e)185.49

Scope 3, Category 12: End-of-life treatment of sold products emissions inreporting year covered by target (metric tons CO2e)51

KARSAN OTOMOTİV SANAYİİ VE TİCARET A.Ş. CDP Climate Change
Questionnaire 2023 26 July 2023

Scope 3, Category 13: Downstream leased assets emissions in reporting year
covered by target (metric tons CO2e)

Scope 3, Category 14: Franchises emissions in reporting year covered bytarget (metric tons CO2e)

Scope 3, Category 15: Investments emissions in reporting year covered bytarget (metric tons CO2e)

Scope 3, Other (upstream) emissions in reporting year covered by target(metric tons CO2e)

Scope 3, Other (downstream) emissions in reporting year covered by target(metric tons CO2e)

Total Scope 3 emissions in reporting year covered by target (metric tons
CO2e)
255

Total emissions in reporting year covered by target in all selected scopes(metric tons CO2e)677.21

Does this target cover any land-related emissions?
Yes, it covers land-related emissions only (e.g. FLAG SBT)

% of target achieved relative to base year [auto-calculated]-19,240.3333333333

Target status in reporting year
RevisedPlease explain target coverage and identify any exclusions
We carry out Milk-run and Circular Economy projects.

Plan for achieving target, and progress made to the end of the reporting year
Increasing the number of projects by 50%

List the emissions reduction initiatives which contributed most to achieving
this target

52

KARSAN OTOMOTİV SANAYİİ VE TİCARET A.Ş. CDP Climate Change
Questionnaire 2023 26 July 2023

C4.1b
(C4.1b) Provide details of your emissions intensity target(s) and progress madeagainst those target(s).

Target reference number
Int 1

Is this a science-based target?
No, and we do not anticipate setting one in the next two years

Target ambition

Year target was set
2019

Target coverage
Site/facility

Scope(s)Scope 1
Scope 2

Scope 2 accounting method
Location-based

Scope 3 category(ies)Intensity metric
Metric tons CO2e per unit of production

Base year
2019

Intensity figure in base year for Scope 1 (metric tons CO2e per unit of activity)
0.5

Intensity figure in base year for Scope 2 (metric tons CO2e per unit of activity)
0.93

Intensity figure in base year for Scope 3, Category 1: Purchased goods andservices (metric tons CO2e per unit of activity)

Intensity figure in base year for Scope 3, Category 2: Capital goods (metrictons CO2e per unit of activity)

53

KARSAN OTOMOTİV SANAYİİ VE TİCARET A.Ş. CDP Climate Change
Questionnaire 2023 26 July 2023

Intensity figure in base year for Scope 3, Category 3: Fuel-and-energy-related
activities (not included in Scopes 1 or 2) (metric tons CO2e per unit of activity)

Intensity figure in base year for Scope 3, Category 4: Upstream transportationand distribution (metric tons CO2e per unit of activity)

Intensity figure in base year for Scope 3, Category 5: Waste generated inoperations (metric tons CO2e per unit of activity)

Intensity figure in base year for Scope 3, Category 6: Business travel (metrictons CO2e per unit of activity)

Intensity figure in base year for Scope 3, Category 7: Employee commuting(metric tons CO2e per unit of activity)

Intensity figure in base year for Scope 3, Category 8: Upstream leased assets(metric tons CO2e per unit of activity)

Intensity figure in base year for Scope 3, Category 9: Downstream
transportation and distribution (metric tons CO2e per unit of activity)

Intensity figure in base year for Scope 3, Category 10: Processing of soldproducts (metric tons CO2e per unit of activity)

Intensity figure in base year for Scope 3, Category 11: Use of sold products(metric tons CO2e per unit of activity)

Intensity figure in base year for Scope 3, Category 12: End-of-life treatment ofsold products (metric tons CO2e per unit of activity)

Intensity figure in base year for Scope 3, Category 13: Downstream leased
assets (metric tons CO2e per unit of activity)

Intensity figure in base year for Scope 3, Category 14: Franchises (metric tons
CO2e per unit of activity)

54

KARSAN OTOMOTİV SANAYİİ VE TİCARET A.Ş. CDP Climate Change
Questionnaire 2023 26 July 2023

Intensity figure in base year for Scope 3, Category 15: Investments (metrictons CO2e per unit of activity)

Intensity figure in base year for Scope 3, Other (upstream) (metric tons CO2e
per unit of activity)

Intensity figure in base year for Scope 3, Other (downstream) (metric tons
CO2e per unit of activity)

Intensity figure in base year for total Scope 3 (metric tons CO2e per unit ofactivity)

Intensity figure in base year for all selected Scopes (metric tons CO2e per unitof activity)
1.44% of total base year emissions in Scope 1 covered by this Scope 1 intensity
figure85% of total base year emissions in Scope 2 covered by this Scope 2 intensity
figure95% of total base year emissions in Scope 3, Category 1: Purchased goods andservices covered by this Scope 3, Category 1: Purchased goods and services
intensity figure% of total base year emissions in Scope 3, Category 2: Capital goods coveredby this Scope 3, Category 2: Capital goods intensity figure% of total base year emissions in Scope 3, Category 3: Fuel-and-energyrelated activities (not included in Scopes 1 or 2) covered by this Scope 3,
Category 3: Fuel-and-energy-related activities (not included in Scopes 1 or 2)
intensity figure% of total base year emissions in Scope 3, Category 4: Upstream
transportation and distribution covered by this Scope 3, Category 4: Upstream
transportation and distribution intensity figure

55

KARSAN OTOMOTİV SANAYİİ VE TİCARET A.Ş. CDP Climate Change
Questionnaire 2023 26 July 2023

% of total base year emissions in Scope 3, Category 5: Waste generated inoperations covered by this Scope 3, Category 5: Waste generated inoperations intensity figure% of total base year emissions in Scope 3, Category 6: Business travel
covered by this Scope 3, Category 6: Business travel intensity figure% of total base year emissions in Scope 3, Category 7: Employee commuting
covered by this Scope 3, Category 7: Employee commuting intensity figure% of total base year emissions in Scope 3, Category 8: Upstream leased
assets covered by this Scope 3, Category 8: Upstream leased assets intensity
figure% of total base year emissions in Scope 3, Category 9: Downstream
transportation and distribution covered by this Scope 3, Category 9:
Downstream transportation and distribution intensity figure% of total base year emissions in Scope 3, Category 10: Processing of soldproducts covered by this Scope 3, Category 10: Processing of sold products
intensity figure% of total base year emissions in Scope 3, Category 11: Use of sold products
covered by this Scope 3, Category 11: Use of sold products intensity figure% of total base year emissions in Scope 3, Category 12: End-of-life treatmentof sold products covered by this Scope 3, Category 12: End-of-life treatmentof sold products intensity figure% of total base year emissions in Scope 3, Category 13: Downstream leased
assets covered by this Scope 3, Category 13: Downstream leased assets
intensity figure% of total base year emissions in Scope 3, Category 14: Franchises coveredby this Scope 3, Category 14: Franchises intensity figure% of total base year emissions in Scope 3, Category 15: Investments coveredby this Scope 3, Category 15: Investments intensity figure
56

KARSAN OTOMOTİV SANAYİİ VE TİCARET A.Ş. CDP Climate Change
Questionnaire 2023 26 July 2023

% of total base year emissions in Scope 3, Other (upstream) covered by thisScope 3, Other (upstream) intensity figure% of total base year emissions in Scope 3, Other (downstream) covered bythis Scope 3, Other (downstream) intensity figure% of total base year emissions in Scope 3 (in all Scope 3 categories) coveredby this total Scope 3 intensity figure% of total base year emissions in all selected Scopes covered by this intensity
figure100

Target year
2022

Targeted reduction from base year (%)
3

Intensity figure in target year for all selected Scopes (metric tons CO2e perunit of activity) [auto-calculated]
1.3968% change anticipated in absolute Scope 1+2 emissions
4.5% change anticipated in absolute Scope 3 emissions
0.5

Intensity figure in reporting year for Scope 1 (metric tons CO2e per unit ofactivity)
0.49

Intensity figure in reporting year for Scope 2 (metric tons CO2e per unit ofactivity)
0.97

Intensity figure in reporting year for Scope 3, Category 1: Purchased goods
and services (metric tons CO2e per unit of activity)

Intensity figure in reporting year for Scope 3, Category 2: Capital goods(metric tons CO2e per unit of activity)

57

KARSAN OTOMOTİV SANAYİİ VE TİCARET A.Ş. CDP Climate Change
Questionnaire 2023 26 July 2023

Intensity figure in reporting year for Scope 3, Category 3: Fuel-and-energyrelated activities (not included in Scopes 1 or 2) (metric tons CO2e per unit ofactivity)

Intensity figure in reporting year for Scope 3, Category 4: Upstream
transportation and distribution (metric tons CO2e per unit of activity)

Intensity figure in reporting year for Scope 3, Category 5: Waste generated inoperations (metric tons CO2e per unit of activity)

Intensity figure in reporting year for Scope 3, Category 6: Business travel(metric tons CO2e per unit of activity)

Intensity figure in reporting year for Scope 3, Category 7: Employee
commuting (metric tons CO2e per unit of activity)

Intensity figure in reporting year for Scope 3, Category 8: Upstream leased
assets (metric tons CO2e per unit of activity)

Intensity figure in reporting year for Scope 3, Category 9: Downstream
transportation and distribution (metric tons CO2e per unit of activity)

Intensity figure in reporting year for Scope 3, Category 10: Processing of soldproducts (metric tons CO2e per unit of activity)

Intensity figure in reporting year for Scope 3, Category 11: Use of soldproducts (metric tons CO2e per unit of activity)

Intensity figure in reporting year for Scope 3, Category 12: End-of-life
treatment of sold products (metric tons CO2e per unit of activity)

Intensity figure in reporting year for Scope 3, Category 13: Downstream leased
assets (metric tons CO2e per unit of activity)

Intensity figure in reporting year for Scope 3, Category 14: Franchises (metrictons CO2e per unit of activity)

58

KARSAN OTOMOTİV SANAYİİ VE TİCARET A.Ş. CDP Climate Change
Questionnaire 2023 26 July 2023

Intensity figure in reporting year for Scope 3, Category 15: Investments(metric tons CO2e per unit of activity)

Intensity figure in reporting year for Scope 3, Other (upstream) (metric tons
CO2e per unit of activity)

Intensity figure in reporting year for Scope 3, Other (downstream) (metric tons
CO2e per unit of activity)

Intensity figure in reporting year for total Scope 3 (metric tons CO2e per unitof activity)

Intensity figure in reporting year for all selected Scopes (metric tons CO2e perunit of activity)
1.51

Does this target cover any land-related emissions?
Yes, it covers land-related emissions only (e.g. FLAG SBT)

% of target achieved relative to base year [auto-calculated]-162.037037037

Target status in reporting year
RevisedPlease explain target coverage and identify any exclusions
We launched a new product in 2022. Carbon emissions generated during productcommissioning are also included in the product. We expect emissions from 2022 todecrease.

Plan for achieving target, and progress made to the end of the reporting year
-Preparing carbon footprint per product report (according to ISO 14067)-Preparing Energy Feasibility Report-Implementing an internal carbon pricing system

List the emissions reduction initiatives which contributed most to achieving
this target

C4.2(C4.2) Did you have any other climate-related targets that were active in the reporting
year?
Other climate-related target(s)59KARSAN OTOMOTİV SANAYİİ VE TİCARET A.Ş. CDP Climate Change
Questionnaire 2023 26 July 2023

C4.2b
(C4.2b) Provide details of any other climate-related targets, including methane
reduction targets.

Target reference number
Oth 1

Year target was set
2019

Target coverage
Site/facility

Target type: absolute or intensity
Absolute

Target type: category & Metric (target numerator if reporting an intensity
target)Energy consumption or efficiency
GJ

Target denominator (intensity targets only)

Base year
2020

Figure or percentage in base year
20

Target year
2022

Figure or percentage in target year
18

Figure or percentage in reporting year
15.8

% of target achieved relative to base year [auto-calculated]
210

Target status in reporting year
Achieved

Is this target part of an emissions target?

60

KARSAN OTOMOTİV SANAYİİ VE TİCARET A.Ş. CDP Climate Change
Questionnaire 2023 26 July 2023

The energy consumption reduction target is part of our Scope 1, 2 emission reductionplan.

Is this target part of an overarching initiative?
Other, please specify
Our internal targets for WCM Management System

Please explain target coverage and identify any exclusions

Plan for achieving target, and progress made to the end of the reporting year

List the actions which contributed most to achieving this target
We established ISO 50001 Energy Management System.
We created Loss Analyses System for Energy Losses.
We performed Kaizen Project for Energy Efficiency and we saved 836 MWh/year for(Karsan Sustainability Report_2022_draft, page 45) .

Target reference number
Oth 2

Year target was set
2020

Target coverage
Site/facility

Target type: absolute or intensity
Intensity

Target type: category & Metric (target numerator if reporting an intensity
target)Waste management
metric tons of waste generated

Target denominator (intensity targets only)
unit of production

Base year
2020

Figure or percentage in base year
354.1

Target year
2022

Figure or percentage in target year
61

KARSAN OTOMOTİV SANAYİİ VE TİCARET A.Ş. CDP Climate Change
Questionnaire 2023 26 July 2023

283.2

Figure or percentage in reporting year
78.3

% of target achieved relative to base year [auto-calculated]
388.9985895628

Target status in reporting year
Achieved

Is this target part of an emissions target?
A decrease in waste amount results in a decrease in Scope 3 emissions because of
reduced disposal emissions.

Is this target part of an overarching initiative?
No, it’s not part of an overarching initiative

Please explain target coverage and identify any exclusions

Plan for achieving target, and progress made to the end of the reporting year

List the actions which contributed most to achieving this target
We implemented WCM Management System.
We created Loss Analyses System for Waste Losses.
We performed EMAT Audits for environmental management.
We carried out environmental training.
(Karsan Sustainability Report_2022_draft, page 47-50)

Target reference number
Oth 3

Year target was set
2020

Target coverage
Site/facility

Target type: absolute or intensity
Absolute

Target type: category & Metric (target numerator if reporting an intensity
target)Low-carbon vehicles
Percentage of low-carbon vehicles soldTarget denominator (intensity targets only)
62

KARSAN OTOMOTİV SANAYİİ VE TİCARET A.Ş. CDP Climate Change
Questionnaire 2023 26 July 2023

Base year
2019

Figure or percentage in base year
23

Target year
2022

Figure or percentage in target year
45

Figure or percentage in reporting year48

% of target achieved relative to base year [auto-calculated]
113.6363636364

Target status in reporting year
Achieved

Is this target part of an emissions target?
Increase in percantage of electric vehicles in total production results in decrease of
Scope 3 emissions because of reduced emissions of sold products.

Is this target part of an overarching initiative?
No, it’s not part of an overarching initiative

Please explain target coverage and identify any exclusions

Plan for achieving target, and progress made to the end of the reporting year

List the actions which contributed most to achieving this target
We launched our first electric vehicle in late 2018. We aim to increase our percentage ofelectric vehicle production to the level 34% by the year 2022. Currently as of 2021 year
end we achieved 24%.

C4.3
(C4.3) Did you have emissions reduction initiatives that were active within thereporting year? Note that this can include those in the planning and/or
implementation phases.
Yes

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C4.3a
(C4.3a) Identify the total number of initiatives at each stage of development, and for
those in the implementation stages, the estimated CO2e savings.

Under investigation

Number of
initiatives

Total estimated annual CO2e savings in metrictonnes CO2e (only for rows marked *)

3

273

9

187

To be implemented*
Implementationcommenced*
Implemented*
Not to be implemented

C4.3b
(C4.3b) Provide details on the initiatives implemented in the reporting year in the tablebelow.

Initiative category & Initiative type
Energy efficiency in production processes
Waste heat recovery

Estimated annual CO2e savings (metric tonnes CO2e)
103

Scope(s) or Scope 3 category(ies) where emissions savings occur
Scope 1

Voluntary/Mandatory
Voluntary

Annual monetary savings (unit currency – as specified in C0.4)
1,201,000

Investment required (unit currency – as specified in C0.4)
639,000

Payback period<1 year

Estimated lifetime of the initiative
11-15 years

Comment

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We define our problem that we used 5W1H tools, and that shows the compressor unit
produces waste heat 181 Kwh energy independent of person. Pheonomena is Losses
due to not using recoverable energy which is Type 4 losses (losses due to non-using
recoverable energy) . We can realised it from external measurement that shows us
there are still produces And when we look root cause, you can see that there is a lack oftechnology.

Initiative category & Initiative type
Energy efficiency in production processes
Machine/equipment replacement

Estimated annual CO2e savings (metric tonnes CO2e)27

Scope(s) or Scope 3 category(ies) where emissions savings occur
Scope 2 (location-based)

Voluntary/Mandatory
Voluntary

Annual monetary savings (unit currency – as specified in C0.4)
198,000

Investment required (unit currency – as specified in C0.4)
120,000

Payback period<1 year

Estimated lifetime of the initiative
11-15 years

Comment
We define the problem that we used 5W1H tools, and that shows us time of the rest in
welding area consumes 40 kWh energy independent of person for break time.
Phenomena is transformation loss. We can realised it from SCADA data that shows us
there is still consumption for break time. And when we look root cause you can see thatlack of technology.
After root cause analyses we added a sensor with a field scanner and We have made it
automatically turn off during break times. In the Check phase, we have controlled theresult in which we gained 36.000 kWh/year energy use improvement and in total 198
kTL earnings.

Initiative category & Initiative type
Energy efficiency in production processes
Machine/equipment replacement
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Estimated annual CO2e savings (metric tonnes CO2e)
57

Scope(s) or Scope 3 category(ies) where emissions savings occur
Scope 2 (location-based)

Voluntary/Mandatory
Voluntary

Annual monetary savings (unit currency – as specified in C0.4)
465,957

Investment required (unit currency – as specified in C0.4)
810,000

Payback period
1-3 years

Estimated lifetime of the initiative
11-15 years

Comment
We replaced IE2 pumps with more efficient IE4 pumps.

Initiative category & Initiative type
Energy efficiency in production processes
Other, please specify
Other kaizen project

Estimated annual CO2e savings (metric tonnes CO2e)
46

Scope(s) or Scope 3 category(ies) where emissions savings occur
Scope 1
Scope 2 (location-based)

Voluntary/Mandatory
Voluntary

Annual monetary savings (unit currency – as specified in C0.4)
220,000

Investment required (unit currency – as specified in C0.4)
310,000

Payback period
1-3 years

Estimated lifetime of the initiative66

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6-10 years

Comment

Initiative category & Initiative type
Waste reduction and material circularity
Waste reduction

Estimated annual CO2e savings (metric tonnes CO2e)
3.2

Scope(s) or Scope 3 category(ies) where emissions savings occur
Scope 3 category 5: Waste generated in operations

Voluntary/Mandatory
Voluntary

Annual monetary savings (unit currency – as specified in C0.4)
110,000

Investment required (unit currency – as specified in C0.4)
0Payback period<1 year

Estimated lifetime of the initiative
Ongoing

Comment
With our circular economy practices, we no longer use 8 tons/year packaging at all.

Initiative category & Initiative type
Waste reduction and material circularity
Product or service design

Estimated annual CO2e savings (metric tonnes CO2e)
57

Scope(s) or Scope 3 category(ies) where emissions savings occur
Scope 3 category 1: Purchased goods & services

Voluntary/Mandatory
Voluntary

Annual monetary savings (unit currency – as specified in C0.4)
250,000
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Investment required (unit currency – as specified in C0.4)
0Payback period<1 year

Estimated lifetime of the initiative
Ongoing

Comment
With the Route Mapping/Green Procurement project, our suppliers travel 105.050 km
less per year.

C4.3c(C4.3c) What methods do you use to drive investment in emissions reduction
activities?
MethodComment

Compliance with regulatory
requirements/standards

In line with our corporate principles compliance with all applicablelaw and regulation is a minimum working standards for Karsan. For
this reason compliance with emission reduction requiring regulatory
activities is a core motivation for investments.

Dedicated budget for energy
efficiency

Energy consumption is one of the main cost items in our operations.
Energy efficiency projects not only reduce carbon emissions but
also support financial performance. For this reason we allocate
dedicated budget annually for energy efficiency projects.

Dedicated budget for lowcarbon product R&D

Producing low carbon product such as electric or alternatives fuelvehicles is the core focus of our business strategy. For this reason
we allocate a substantial percentage of R&D budget for low carbon
products.

Dedicated budget for otheremissions reduction activities

We allocate a dedicated budget to reduce indirect emissions arisingfrom water consumption, wastewater treatment and solid wastes.

Employee engagement

We engage with our employees to encourage them to generatekaizen projects which result in emission reduction. For this reason
we invest in activities to increase employee engagement level suchas training programs.

Internal incentives/recognition
programs

To incentivize employees' efforts towards GHG emission reductions
and suggestions for climate friendly business practices we conduct
recognition and reward programs.

C4.5(C4.5) Do you classify any of your existing goods and/or services as low-carbon
products?
Yes
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C4.5a
(C4.5a) Provide details of your products and/or services that you classify as lowcarbon products.

Level of aggregation
Product or service

Taxonomy used to classify product(s) or service(s) as low-carbon
No taxonomy used to classify product(s) or service(s) as low carbon

Type of product(s) or service(s)RoadLithium-ion batteries

Description of product(s) or service(s)6 meters low floor LDV Electric vehicles "Jest EV" for public passenger transportation

Have you estimated the avoided emissions of this low-carbon product(s) or
service(s)YesMethodology used to calculate avoided emissions
Other, please specify
we calculated internal methodology

Life cycle stage(s) covered for the low-carbon product(s) or services(s)Cradle-to-gate + end-of-life stage

Functional unit used
We calculated for 420.000 km.

Reference product/service or baseline scenario used
we used internal calculated methodology.

Life cycle stage(s) covered for the reference product/service or baseline
scenario
End-of-life stage

Estimated avoided emissions (metric tons CO2e per functional unit) compared
to reference product/service or baseline scenario
72.1

Explain your calculation of avoided emissions, including any assumptions
We have used different data (electricity batteries and diesel motors) of the same vehicle
for 420.000 km.

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Revenue generated from low-carbon product(s) or service(s) as % of total
revenue in the reporting year
34.9

Level of aggregation
Product or service

Taxonomy used to classify product(s) or service(s) as low-carbon
No taxonomy used to classify product(s) or service(s) as low carbon

Type of product(s) or service(s)RoadLithium-ion batteries

Description of product(s) or service(s)8 meters low floor HDV Electric vehicles "Atak EV" and Atak Autonomous EV for publicpassenger transportation

Have you estimated the avoided emissions of this low-carbon product(s) or
service(s)YesMethodology used to calculate avoided emissions
Other, please specify
we calculated internal methodology

Life cycle stage(s) covered for the low-carbon product(s) or services(s)Cradle-to-gate + end-of-life stage

Functional unit used
We calculated for 580.000 km.

Reference product/service or baseline scenario used
we used internal calculated methodology.

Life cycle stage(s) covered for the reference product/service or baseline
scenario
End-of-life stage

Estimated avoided emissions (metric tons CO2e per functional unit) compared
to reference product/service or baseline scenario
48.1

Explain your calculation of avoided emissions, including any assumptions
We have used different data (electricity batteries and diesel motors) of the same vehicle
for 580.000 km.

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Revenue generated from low-carbon product(s) or service(s) as % of total
revenue in the reporting year

Level of aggregation
Product or service

Taxonomy used to classify product(s) or service(s) as low-carbon
No taxonomy used to classify product(s) or service(s) as low carbon

Type of product(s) or service(s)RoadLithium-ion batteries

Description of product(s) or service(s)12-18 meters low floor HDV Electric vehicles "e-ATA" for public passenger
transportation.

Have you estimated the avoided emissions of this low-carbon product(s) or
service(s)NoMethodology used to calculate avoided emissions

Life cycle stage(s) covered for the low-carbon product(s) or services(s)Functional unit used

Reference product/service or baseline scenario used

Life cycle stage(s) covered for the reference product/service or baseline
scenario

Estimated avoided emissions (metric tons CO2e per functional unit) compared
to reference product/service or baseline scenario

Explain your calculation of avoided emissions, including any assumptions

Revenue generated from low-carbon product(s) or service(s) as % of total
revenue in the reporting year
2
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Level of aggregation
Product or service

Taxonomy used to classify product(s) or service(s) as low-carbon
No taxonomy used to classify product(s) or service(s) as low carbon

Type of product(s) or service(s)Road
Hydrogen fuel cell

Description of product(s) or service(s)12-18 meters low floor HDV Hydrogen fuel cell vehicles "e-ATA" for public passenger
transportation.

Have you estimated the avoided emissions of this low-carbon product(s) or
service(s)NoMethodology used to calculate avoided emissions

Life cycle stage(s) covered for the low-carbon product(s) or services(s)Functional unit used

Reference product/service or baseline scenario used

Life cycle stage(s) covered for the reference product/service or baseline
scenario

Estimated avoided emissions (metric tons CO2e per functional unit) compared
to reference product/service or baseline scenario

Explain your calculation of avoided emissions, including any assumptions

Revenue generated from low-carbon product(s) or service(s) as % of total
revenue in the reporting year
172

KARSAN OTOMOTİV SANAYİİ VE TİCARET A.Ş. CDP Climate Change
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C5. Emissions methodology
C5.1(C5.1) Is this your first year of reporting emissions data to CDP?
No

C5.1a
(C5.1a) Has your organization undergone any structural changes in the reporting year,
or are any previous structural changes being accounted for in this disclosure ofemissions data?
Row 1
Has there been a structural change?
No

C5.1b
(C5.1b) Has your emissions accounting methodology, boundary, and/or reporting year
definition changed in the reporting year?
Change(s) in methodology, boundary, and/or reporting year definition?
Row 1

No

C5.2
(C5.2) Provide your base year and base year emissions.
Scope 1
Base year start
January 1, 2018

Base year end
December 31, 2018

Base year emissions (metric tons CO2e)
3,619

Comment

Scope 2 (location-based)
Base year start
January 1, 2018

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Base year end
December 31, 2018

Base year emissions (metric tons CO2e)4,910

Comment

Scope 2 (market-based)
Base year start
January 1, 2018

Base year end
December 31, 2018

Base year emissions (metric tons CO2e)0

Comment

Scope 3 category 1: Purchased goods and services
Base year start
January 1, 2021

Base year end
December 31, 2021

Base year emissions (metric tons CO2e)
25.13

Comment
Profile warehouse supplier voyage and km information are taken into account.

Scope 3 category 2: Capital goods
Base year start

Base year end

Base year emissions (metric tons CO2e)

Comment

74

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Scope 3 category 3: Fuel-and-energy-related activities (not included in Scope 1 or
2)
Base year start
January 1, 2021

Base year end
December 31, 2021

Base year emissions (metric tons CO2e)
45.01

Comment
We calculated energy related emissions of our suppliers.

Scope 3 category 4: Upstream transportation and distribution
Base year start

Base year end

Base year emissions (metric tons CO2e)

Comment

Scope 3 category 5: Waste generated in operations
Base year start

Base year end

Base year emissions (metric tons CO2e)

Comment

Scope 3 category 6: Business travel
Base year start

Base year end

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KARSAN OTOMOTİV SANAYİİ VE TİCARET A.Ş. CDP Climate Change
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Base year emissions (metric tons CO2e)

Comment

Scope 3 category 7: Employee commuting
Base year start

Base year end

Base year emissions (metric tons CO2e)

Comment

Scope 3 category 8: Upstream leased assets
Base year start

Base year end

Base year emissions (metric tons CO2e)

Comment

Scope 3 category 9: Downstream transportation and distribution
Base year start

Base year end

Base year emissions (metric tons CO2e)

Comment

Scope 3 category 10: Processing of sold products
Base year start76

KARSAN OTOMOTİV SANAYİİ VE TİCARET A.Ş. CDP Climate Change
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Base year end

Base year emissions (metric tons CO2e)

Comment

Scope 3 category 11: Use of sold products
Base year start
January 1, 2021

Base year end
December 31, 2021

Base year emissions (metric tons CO2e)
195

Comment

Scope 3 category 12: End of life treatment of sold products
Base year start

Base year end

Base year emissions (metric tons CO2e)

Comment

Scope 3 category 13: Downstream leased assets
Base year start

Base year end

Base year emissions (metric tons CO2e)

Comment

Scope 3 category 14: Franchises
77

KARSAN OTOMOTİV SANAYİİ VE TİCARET A.Ş. CDP Climate Change
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Base year start

Base year end

Base year emissions (metric tons CO2e)

Comment

Scope 3 category 15: Investments
Base year start

Base year end

Base year emissions (metric tons CO2e)

Comment

Scope 3: Other (upstream)
Base year start

Base year end

Base year emissions (metric tons CO2e)

Comment

Scope 3: Other (downstream)
Base year start

Base year end

Base year emissions (metric tons CO2e)

Comment
78

KARSAN OTOMOTİV SANAYİİ VE TİCARET A.Ş. CDP Climate Change
Questionnaire 2023 26 July 2023

C5.3
(C5.3) Select the name of the standard, protocol, or methodology you have used tocollect activity data and calculate emissions.
ISO 14064-1

C6. Emissions data
C6.1
(C6.1) What were your organization’s gross global Scope 1 emissions in metric tons
CO2e?
Reporting year
Gross global Scope 1 emissions (metric tons CO2e)
3,013.39

Start date
January 1, 2022

End date
December 31, 2022

Comment
Karsan Sustainability Report, page 68

Past year 1
Gross global Scope 1 emissions (metric tons CO2e)
1,454.88

Start date
January 1, 2021

End date
December 31, 2021

Comment
Karsan Sustainability Report, page 68

Past year 2
Gross global Scope 1 emissions (metric tons CO2e)
1,815

79

KARSAN OTOMOTİV SANAYİİ VE TİCARET A.Ş. CDP Climate Change
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Start date
January 1, 2020

End date
December 31, 2020

Comment
Karsan Sustainability Report, page 68

Past year 3
Gross global Scope 1 emissions (metric tons CO2e)
2,521Start date
January 1, 2019

End date
December 31, 2019

Comment
Karsan Sustainability Report-2020, page 37

C6.2(C6.2) Describe your organization’s approach to reporting Scope 2 emissions.
Row 1
Scope 2, location-based
We are reporting a Scope 2, location-based figure

Scope 2, market-based
We have no operations where we are able to access electricity supplier emission factors
or residual emissions factors and are unable to report a Scope 2, market-based figure

Comment

C6.3(C6.3) What were your organization’s gross global Scope 2 emissions in metric tons
CO2e?
Reporting year
Scope 2, location-based
5,870.13

Start date
January 1, 2022
80

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End date
December 31, 2022

Comment
Karsan Sustainability Report, page 68

Past year 1
Scope 2, location-based
4,015.08

Start date
January 1, 2021

End date
December 31, 2021

Comment
Karsan Sustainability Report, page 68

Past year 2
Scope 2, location-based
3,772

Start date
January 1, 2020

End date
December 31, 2020

Comment
Karsan Sustainability Report, page 68

Past year 3
Scope 2, location-based
4,665

Start date
January 1, 2019

End date
December 31, 2019

Comment
Karsan Sustainability Report-2020, page 37

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KARSAN OTOMOTİV SANAYİİ VE TİCARET A.Ş. CDP Climate Change
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C6.4
(C6.4) Are there any sources (e.g. facilities, specific GHGs, activities, geographies,etc.) of Scope 1, Scope 2 or Scope 3 emissions that are within your selected reporting
boundary which are not included in your disclosure?
No

C6.5(C6.5) Account for your organization’s gross global Scope 3 emissions, disclosing
and explaining any exclusions.
Purchased goods and services
Evaluation status
Relevant, calculated

Emissions in reporting year (metric tons CO2e)
25.1

Emissions calculation methodology
Methodology for direct use phase emissions, please specify
Natural gas consumption

Percentage of emissions calculated using data obtained from suppliers orvalue chain partners
1

Please explain
We calculated fixed suppliers as a pilot project.

Capital goods
Evaluation status

Please explain

Fuel-and-energy-related activities (not included in Scope 1 or 2)
Evaluation status
Relevant, calculated

Emissions in reporting year (metric tons CO2e)
44.4

Emissions calculation methodology
Fuel-based method82

KARSAN OTOMOTİV SANAYİİ VE TİCARET A.Ş. CDP Climate Change
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Percentage of emissions calculated using data obtained from suppliers orvalue chain partners
2

Please explain
We calculated our emission from transportation.

Upstream transportation and distribution
Evaluation status

Please explain

Waste generated in operations
Evaluation status

Please explain

Business travel
Evaluation status
Relevant, not yet calculated

Please explain
We are planning to calculate for 2024.

Employee commuting
Evaluation status

Please explain

Upstream leased assets
Evaluation status

Please explain

Downstream transportation and distribution
Evaluation status83

KARSAN OTOMOTİV SANAYİİ VE TİCARET A.Ş. CDP Climate Change
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Please explain

Processing of sold products
Evaluation status

Please explain

Use of sold products
Evaluation status
Relevant, calculated

Emissions in reporting year (metric tons CO2e)
185.5

Emissions calculation methodology
Average product method

Percentage of emissions calculated using data obtained from suppliers orvalue chain partners
66

Please explain
We calculated for Atak EV and Jest EV.

End of life treatment of sold products
Evaluation status
Relevant, not yet calculated

Please explain
We will carry out about carbon footprint per product according to ISO 14067 and We areplanning to calculate for 2024.

Downstream leased assets
Evaluation status

Please explain

Franchises
Evaluation status

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Please explain

Investments
Evaluation status

Please explain

Other (upstream)
Evaluation status

Please explain

Other (downstream)
Evaluation status

Please explain

C6.5a(C6.5a) Disclose or restate your Scope 3 emissions data for previous years.
Past year 1
Start date
January 1, 2021

End date
December 31, 2021

Scope 3: Purchased goods and services (metric tons CO2e)
25.13

Scope 3: Capital goods (metric tons CO2e)

Scope 3: Fuel and energy-related activities (not included in Scopes 1 or 2)(metric tons CO2e)
45.01

Scope 3: Upstream transportation and distribution (metric tons CO2e)85

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Scope 3: Waste generated in operations (metric tons CO2e)

Scope 3: Business travel (metric tons CO2e)

Scope 3: Employee commuting (metric tons CO2e)

Scope 3: Upstream leased assets (metric tons CO2e)

Scope 3: Downstream transportation and distribution (metric tons CO2e)

Scope 3: Processing of sold products (metric tons CO2e)

Scope 3: Use of sold products (metric tons CO2e)
195.9

Scope 3: End of life treatment of sold products (metric tons CO2e)

Scope 3: Downstream leased assets (metric tons CO2e)

Scope 3: Franchises (metric tons CO2e)

Scope 3: Investments (metric tons CO2e)

Scope 3: Other (upstream) (metric tons CO2e)

Scope 3: Other (downstream) (metric tons CO2e)

Comment

Past year 2
Start date
January 1, 2020

End date
December 31, 2020

Scope 3: Purchased goods and services (metric tons CO2e)86

KARSAN OTOMOTİV SANAYİİ VE TİCARET A.Ş. CDP Climate Change
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Scope 3: Capital goods (metric tons CO2e)

Scope 3: Fuel and energy-related activities (not included in Scopes 1 or 2)(metric tons CO2e)880

Scope 3: Upstream transportation and distribution (metric tons CO2e)

Scope 3: Waste generated in operations (metric tons CO2e)

Scope 3: Business travel (metric tons CO2e)

Scope 3: Employee commuting (metric tons CO2e)

Scope 3: Upstream leased assets (metric tons CO2e)

Scope 3: Downstream transportation and distribution (metric tons CO2e)

Scope 3: Processing of sold products (metric tons CO2e)

Scope 3: Use of sold products (metric tons CO2e)

Scope 3: End of life treatment of sold products (metric tons CO2e)

Scope 3: Downstream leased assets (metric tons CO2e)

Scope 3: Franchises (metric tons CO2e)

Scope 3: Investments (metric tons CO2e)

Scope 3: Other (upstream) (metric tons CO2e)

Scope 3: Other (downstream) (metric tons CO2e)

Comment

87

KARSAN OTOMOTİV SANAYİİ VE TİCARET A.Ş. CDP Climate Change
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C6.7
(C6.7) Are carbon dioxide emissions from biogenic carbon relevant to yourorganization?
No

C6.10
(C6.10) Describe your gross global combined Scope 1 and 2 emissions for thereporting year in metric tons CO2e per unit currency total revenue and provide any
additional intensity metrics that are appropriate to your business operations.

Intensity figure
1.47

Metric numerator (Gross global combined Scope 1 and 2 emissions, metrictons CO2e)8,883

Metric denominator
unit total revenue

Metric denominator: Unit total
6,047

Scope 2 figure used
Location-based% change from previous year
56

Direction of change
Decreased

Reason(s) for change
Other emissions reduction activities

Please explain
Energy efficiency projects are an important part of this decrease, but the most significant
impact arises from the shift of sold products to the electrical vehicle segment.

88

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C7. Emissions breakdowns
C7.1(C7.1) Does your organization break down its Scope 1 emissions by greenhouse gas
type?
No

C7.2
(C7.2) Break down your total gross global Scope 1 emissions by country/area/region.
Country/area/region

Scope 1 emissions (metric tons CO2e)

Turkey3,013.39

C7.3(C7.3) Indicate which gross global Scope 1 emissions breakdowns you are able toprovide.
By facility

C7.3b(C7.3b) Break down your total gross global Scope 1 emissions by business facility.
Facility

Scope 1 emissions (metric tons CO2e)

LatitudeLongitude

Hasanaga Facilities

3,013.39

40.174038

28.77497

C-CE7.4/C-CH7.4/C-CO7.4/C-EU7.4/C-MM7.4/C-OG7.4/CST7.4/C-TO7.4/C-TS7.4(C-CE7.4/C-CH7.4/C-CO7.4/C-EU7.4/C-MM7.4/C-OG7.4/C-ST7.4/C-TO7.4/C-TS7.4) Breakdown your organization’s total gross global Scope 1 emissions by sector production
activity in metric tons CO2e.
Gross Scope 1 emissions, metric tons CO2e
Transport OEM activities

Comment

3,013.39

C7.5(C7.5) Break down your total gross global Scope 2 emissions by country/area/region.
Country/area/region Scope 2, location-based (metrictons CO2e)

Scope 2, market-based (metrictons CO2e)

Turkey05,870.13

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Questionnaire 2023 26 July 2023

C7.6
(C7.6) Indicate which gross global Scope 2 emissions breakdowns you are able toprovide.
By facility

C7.6b(C7.6b) Break down your total gross global Scope 2 emissions by business facility.
Facility

Scope 2, location-based (metric tons
CO2e)

Scope 2, market-based (metric tons
CO2e)Hasanaga
Facilities

5,870.13

0

C7.7(C7.7) Is your organization able to break down your emissions data for any of thesubsidiaries included in your CDP response?
No

C-CE7.7/C-CH7.7/C-CO7.7/C-MM7.7/C-OG7.7/C-ST7.7/CTO7.7/C-TS7.7(C-CE7.7/C-CH7.7/C-CO7.7/C-MM7.7/C-OG7.7/C-ST7.7/C-TO7.7/C-TS7.7) Break down
your organization’s total gross global Scope 2 emissions by sector production
activity in metric tons CO2e.

Transport OEM
activities

Scope 2, location-based,
metric tons CO2e

Scope 2, market-based (ifapplicable), metric tons CO2e5,870.13

0Comment

C-TO7.8(C-TO7.8) Provide primary intensity metrics that are appropriate to your indirectemissions in Scope 3 Category 11: Use of sold products from transport.

Activity
Light Duty Vehicles (LDV)

Emissions intensity figure
0.290KARSAN OTOMOTİV SANAYİİ VE TİCARET A.Ş. CDP Climate Change
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Metric numerator (Scope 3 emissions: use of sold products) in Metric tons
CO2e
72.1

Metric denominatorp.km

Metric denominator: Unit total
420,000% change from previous year
300

Vehicle unit sales in reporting year
379

Vehicle lifetime in years
20

Annual distance in km or miles (unit specified by column 4)
21,000

Load factor

Please explain the changes, and relevant standards/methodologies used
We used internal methodologies.

Activity
Heavy Duty Vehicles (HDV)

Emissions intensity figure
0.24

Metric numerator (Scope 3 emissions: use of sold products) in Metric tons
CO2e
49.8

Metric denominatorp.km

Metric denominator: Unit total
520,000% change from previous year

Vehicle unit sales in reporting year
209
91

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Vehicle lifetime in years
20

Annual distance in km or miles (unit specified by column 4)
26,000

Load factor

Please explain the changes, and relevant standards/methodologies used
We used internal methodologies.

C7.9(C7.9) How do your gross global emissions (Scope 1 and 2 combined) for thereporting year compare to those of the previous reporting year?
Increased

C7.9a(C7.9a) Identify the reasons for any change in your gross global emissions (Scope 1
and 2 combined), and for each of them specify how your emissions compare to theprevious year.
Change inemissions (metrictons CO2e)

Direction ofchange inemissions

Change in renewable 0
energy consumption

No change

Other emissions
reduction activities

Decreased

376

Emissions value(percentage)

Please explain
calculation

1

Energyefficiency
projects

Divestment
Acquisitions
Mergers
Change in output
Change inmethodology
Change in boundary
Change in physicaloperating conditions
Unidentified
Other

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C7.9b
(C7.9b) Are your emissions performance calculations in C7.9 and C7.9a based on alocation-based Scope 2 emissions figure or a market-based Scope 2 emissions
figure?
Location-based

C8. Energy
C8.1(C8.1) What percentage of your total operational spend in the reporting year was onenergy?
More than 5% but less than or equal to 10%

C8.2(C8.2) Select which energy-related activities your organization has undertaken.
Indicate whether your organization undertook this energyrelated activity in the reporting year
Consumption of fuel (excluding
feedstocks)

Yes

Consumption of purchased or
acquired electricity

Yes

Consumption of purchased or
acquired heat

No

Consumption of purchased or
acquired steamNo

Consumption of purchased or
acquired cooling

No

Generation of electricity, heat,steam, or cooling

No

C8.2a
(C8.2a) Report your organization’s energy consumption totals (excluding feedstocks)
in MWh.
Heatingvalue

MWh from
renewable
sources

MWh from nonrenewablesources

Total (renewable
and non-renewable)
MWh93

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Consumption of fuel(excluding feedstock)

LHV (lower
heatingvalue)

Consumption ofpurchased or acquired
electricity

546

13,633

14,1790

12,351

12,351

Total energy
consumption

C8.2b(C8.2b) Select the applications of your organization’s consumption of fuel.
Indicate whether your organization undertakes thisfuel application
Consumption of fuel for the generation ofelectricity

No

Consumption of fuel for the generation of
heat

Yes

Consumption of fuel for the generation of
steam

No

Consumption of fuel for the generation ofcooling

No

Consumption of fuel for co-generation or
tri-generation

No

C8.2c
(C8.2c) State how much fuel in MWh your organization has consumed (excluding
feedstocks) by fuel type.
Sustainable biomass
Heating value

Total fuel MWh consumed by the organization

Comment

Other biomass
Heating value

94

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Total fuel MWh consumed by the organization

Comment

Other renewable fuels (e.g. renewable hydrogen)Heating value
LHV

Total fuel MWh consumed by the organization
546

Comment
We use waste heat from the compressor unit.

Coal
Heating value

Total fuel MWh consumed by the organization

Comment

Oil
Heating value

Total fuel MWh consumed by the organization

Comment

Gas
Heating value
LHV

Total fuel MWh consumed by the organization
13,633

Comment
We use Natural Gas for heating and processes.

Other non-renewable fuels (e.g. non-renewable hydrogen)95

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Heating value

Total fuel MWh consumed by the organization

Comment

Total fuelHeating value
LHV

Total fuel MWh consumed by the organization
14,179Comment

C8.2g(C8.2g) Provide a breakdown by country/area of your non-fuel energy consumption in
the reporting year.

Country/area
TurkeyConsumption of purchased electricity (MWh)12,351

Consumption of self-generated electricity (MWh)0Consumption of purchased heat, steam, and cooling (MWh)13,633

Consumption of self-generated heat, steam, and cooling (MWh)546

Total non-fuel energy consumption (MWh) [Auto-calculated]
26,530C-TO8.5(C-TO8.5) Provide any efficiency metrics that are appropriate for your organization’stransport products and/or services.
96

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Activity
Light Duty Vehicles (LDV)

Metric figure
72.1

Metric numerator
gCO2e

Metric denominator
Production: Vehicle

Metric numerator: Unit total
155

Metric denominator: Unit total
27,326% change from previous year
131

Please explain

Activity
Heavy Duty Vehicles (HDV)

Metric figure
49.8

Metric numerator
gCO2e

Metric denominator
Production: Vehicle

Metric numerator: Unit total
128

Metric denominator: Unit total
10,408% change from previous year
96

97

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Please explain

C9. Additional metrics
C9.1(C9.1) Provide any additional climate-related metrics relevant to your business.

Description
Waste

Metric value
230.37

Metric numerator
contaminated wastes such as by unit produced

Metric denominator (intensity metric only)
kg/unit of vehicle produced% change from previous year
61

Direction of change
Decreased

Please explain%= 230.37 (2022) /381 (2021). Karsan Sustainability Report; page, 68.

Description
Energy usage

Metric value
15.8

Metric numerator
electric and natural gas such as by unit produced

Metric denominator (intensity metric only)
GJ/vehicle% change from previous year
998

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Direction of change
Decreased

Please explain
Karsan Sustainability Report; page, 68.

Description
Other, please specify
Water

Metric value
8.47

Metric numerator
water withdrawal (m3/product)

Metric denominator (intensity metric only)
m3 water use per vehicle produced% change from previous year
32.5

Direction of change
Decreased

Please explain
Karsan Sustainability Report; page, 68.

C-TO9.3/C-TS9.3(C-TO9.3/C-TS9.3) Provide tracking metrics for the implementation of low-carbon
transport technology over the reporting year.

Activity
Light Duty Vehicles (LDV)

Metric
Sales

Technology
Battery electric vehicle (BEV)

Metric figure
40.8

Metric unit
% of total sales
99

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Explanation
One hundred fifty five (155) units as products have been sold for Jest Electric Vehicle.
Jest electric sales figures constitute 41% of total LCV sales in all versions. Jest electricsales percentage increased from 41% to 131% compared to 2021.

Activity
Heavy Duty Vehicles (HDV)

Metric
Sales

Technology
Battery electric vehicle (BEV)

Metric figure
61

Metric unit
% of total sales

Explanation
One hundred twenty-eight (128) units as products have been sold for Atak Electric
Vehicle.

Activity
Heavy Duty Vehicles (HDV)

Metric
Sales

Technology
Battery electric vehicle (BEV)

Metric figure
9.1

Metric unit
% of total sales

Explanation
In 2021 we launched new electric bus (10m-12m-18m) models to increase share ofelectric vehicles in total HCV sales. e-Ata electric sales figures constitute 9.1% of total
HDV sales including in all versions. Twenty-one (21) units as products have been soldfor e-ATA.

100

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Activity
Heavy Duty Vehicles (HDV)

MetricProduction

Technology
Fuel cell electric vehicle (FCEV)

Metric figure
1

Metric unit
% of total sales

Explanation
In 2022 we carried out new bus (12m) models about Hydrogen Fuel Cell. We aim toincrease the number of hydrogen-fueled vehicles in 2023 and beyond.

C-CE9.6/C-CG9.6/C-CH9.6/C-CN9.6/C-CO9.6/C-EU9.6/CMM9.6/C-OG9.6/C-RE9.6/C-ST9.6/C-TO9.6/C-TS9.6(C-CE9.6/C-CG9.6/C-CH9.6/C-CN9.6/C-CO9.6/C-EU9.6/C-MM9.6/C-OG9.6/C-RE9.6/CST9.6/C-TO9.6/C-TS9.6) Does your organization invest in research and development(R&D) of low-carbon products or services related to your sector activities?

Row
1

Investment in low-carbon
R&D

Comment

Yes

The most significant portion of our R&D activities is focusedonresearch and development of electric and autonomousvehicles.

C-TO9.6a/C-TS9.6a(C-TO9.6a/C-TS9.6a) Provide details of your organization’s investments in low-carbon
R&D for transport-related activities over the last three years.

Activity
Light Duty Vehicles (LDV)

Technology area
Alternative battery technology

Stage of development in the reporting year
Small scale commercial deployment

101

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Average % of total R&D investment over the last 3 years
5

R&D investment figure in the reporting year (unit currency as selected in C0.4)(optional)
566,708

Average % of total R&D investment planned over the next 5 years
10

Explain how your R&D investment in this technology area is aligned with yourclimate commitments and/or climate transition plan
A new electric vehicle battery production project was carried out.

Activity
Heavy Duty Vehicles (HDV)

Technology area
Hydrogen fuel cellStage of development in the reporting year
Full/commercial-scale demonstration

Average % of total R&D investment over the last 3 years
15

R&D investment figure in the reporting year (unit currency as selected in C0.4)(optional)
10,289,222

Average % of total R&D investment planned over the next 5 years
40

Explain how your R&D investment in this technology area is aligned with yourclimate commitments and/or climate transition plan
In 2022, we produced a hydrogen-fueled 12-meter vehicle. We plan to increase thenumber of hydrogen-fueled vehicles starting in 2023.

Activity
Heavy Duty Vehicles (HDV)

Technology area
Automated and connected vehicles (level 4+)

Stage of development in the reporting year
Full/commercial-scale demonstration

102

KARSAN OTOMOTİV SANAYİİ VE TİCARET A.Ş. CDP Climate Change
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Average % of total R&D investment over the last 3 years
16

R&D investment figure in the reporting year (unit currency as selected in C0.4)(optional)
11,753,358

Average % of total R&D investment planned over the next 5 years
25

Explain how your R&D investment in this technology area is aligned with yourclimate commitments and/or climate transition plan

Activity
Light Duty Vehicles (LDV)

Technology area
Automated and connected vehicles (level 4+)

Stage of development in the reporting year
Applied research and development

Average % of total R&D investment over the last 3 years
5

R&D investment figure in the reporting year (unit currency as selected in C0.4)(optional)
647,369

Average % of total R&D investment planned over the next 5 years
10

Explain how your R&D investment in this technology area is aligned with yourclimate commitments and/or climate transition plan
Autonom light commercial vehicle development project.

Activity
Light Duty Vehicles (LDV)

Technology area
Battery electric vehicle

Stage of development in the reporting year
Full/commercial-scale demonstration

Average % of total R&D investment over the last 3 years
103

KARSAN OTOMOTİV SANAYİİ VE TİCARET A.Ş. CDP Climate Change
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30

R&D investment figure in the reporting year (unit currency as selected in C0.4)(optional)
20,410,245

Average % of total R&D investment planned over the next 5 years
50

Explain how your R&D investment in this technology area is aligned with yourclimate commitments and/or climate transition plan

Activity
Heavy Duty Vehicles (HDV)

Technology area
Management

Stage of development in the reporting year
Applied research and development

Average % of total R&D investment over the last 3 years
15

R&D investment figure in the reporting year (unit currency as selected in C0.4)(optional)
11,739,265

Average % of total R&D investment planned over the next 5 years
30

Explain how your R&D investment in this technology area is aligned with yourclimate commitments and/or climate transition plan
Development of cyber security project, extensive data management and R&D projectmodule.

Activity
Heavy Duty Vehicles (HDV)

Technology area
Other, please specify
The other projects

Stage of development in the reporting year
Applied research and development

104

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Average % of total R&D investment over the last 3 years
26

R&D investment figure in the reporting year (unit currency as selected in C0.4)(optional)
21,342,702

Average % of total R&D investment planned over the next 5 years
50

Explain how your R&D investment in this technology area is aligned with yourclimate commitments and/or climate transition plan

C10. Verification
C10.1(C10.1) Indicate the verification/assurance status that applies to your reported
emissions.
Verification/assurance status
Scope 1

Third-party verification or assurance process in place

Scope 2 (location-based or market-based)

Third-party verification or assurance process in place

Scope 3

Third-party verification or assurance process in place

C10.1a(C10.1a) Provide further details of the verification/assurance undertaken for your
Scope 1 emissions, and attach the relevant statements.

Verification or assurance cycle in place
Annual process

Status in the current reporting year
Complete

Type of verification or assurance
Third party verification/assurance underway

Attach the statement
7. RCS6974 KARSAN Doğrulama Sertifikası 2023_REV.00[2].pdf

Page/ section reference
105

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page 2

Relevant standard
ISO14064-1

Proportion of reported emissions verified (%)
100

C10.1b
(C10.1b) Provide further details of the verification/assurance undertaken for your
Scope 2 emissions and attach the relevant statements.

Scope 2 approach
Scope 2 location-based

Verification or assurance cycle in place
Annual process

Status in the current reporting year
Complete

Type of verification or assurance
Third party verification/assurance underway

Attach the statement
7. RCS6974 KARSAN Doğrulama Sertifikası 2023_REV.00[2].pdf

Page/ section reference
page 2.

Relevant standard
ISO14064-1

Proportion of reported emissions verified (%)
100

C10.1c(C10.1c) Provide further details of the verification/assurance undertaken for your
Scope 3 emissions and attach the relevant statements.

Scope 3 category
Scope 3: Purchased goods and services
Scope 3: Fuel and energy-related activities (not included in Scopes 1 or 2)
106

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Scope 3: Use of sold products

Verification or assurance cycle in place
Annual process

Status in the current reporting year
Complete

Type of verification or assurance
Third party verification/ assurance underway

Attach the statement
7. RCS6974 KARSAN Doğrulama Sertifikası 2023_REV.00[2].pdf

Page/section reference
Page 2.

Relevant standardIS)14064-1

Proportion of reported emissions verified (%)
100

C10.2
(C10.2) Do you verify any climate-related information reported in your CDP disclosure
other than the emissions figures reported in C6.1, C6.3, and C6.5?
No, we do not verify any other climate-related information reported in our CDP disclosure

C11. Carbon pricing
C11.1(C11.1) Are any of your operations or activities regulated by a carbon pricing system(i.e. ETS, Cap & Trade or Carbon Tax)?
No, and we do not anticipate being regulated in the next three years

C11.2(C11.2) Has your organization canceled any project-based carbon credits within thereporting year?
No

C11.3
(C11.3) Does your organization use an internal price on carbon?
Yes107

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C11.3a(C11.3a) Provide details of how your organization uses an internal price on carbon.

Type of internal carbon priceShadow priceHow the price is determined
Social cost of carbon
Benchmarking against peers

Objective(s) for implementing this internal carbon price
Change internal behavior
Drive energy efficiency
Drive low-carbon investment
Identify and seize low-carbon opportunities

Scope(s) covered
Scope 1
Scope 2

Pricing approach used – spatial variance
Uniform

Pricing approach used – temporal variance
StaticIndicate how you expect the price to change over time
Actual price(s) used – minimum (currency as specified in C0.4 per metric ton
CO2e)
2,400

Actual price(s) used – maximum (currency as specified in C0.4 per metric ton
CO2e)
3,200

Business decision-making processes this internal carbon price is applied toOperations
Procurement
Risk management
Opportunity management

Mandatory enforcement of this internal carbon price within these businessdecision-making processes
Yes, for some decision-making processes, please specify

108

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Energy efficiency project and purchasing energy efficiency equipment

Explain how this internal carbon price has contributed to the implementationof your organization’s climate commitments and/or climate transition plan
In the energy feasibility report, we had two reports prepared, one including internalcarbon and one without carbon pricing.

C12. Engagement
C12.1(C12.1) Do you engage with your value chain on climate-related issues?
Yes, our suppliers
Yes, our customers/clients
Yes, other partners in the value chain

C12.1a(C12.1a) Provide details of your climate-related supplier engagement strategy.

Type of engagement
Information collection (understanding supplier behavior)

Details of engagement
Collect other climate related information at least annually from suppliers% of suppliers by number
57% total procurement spend (direct and indirect)50% of supplier-related Scope 3 emissions as reported in C6.5
2

Rationale for the coverage of your engagement
As Karsan, we support the transition towards a low carbon mobility environment throughelectric, autonomous and hydrogen vehicles. For this reason we develop and produce
EV vehicles.
Developing a cutting edge technology in automotive industry is only possible if weengaged deeply with our suppliers. We work together to innovate new technologies andproduced high value added vehicles with our suppliers in order to drive change towards
a climate friendly mobility service industry.
Karsan checks the environmental and social parameters of its suppliers on an annual
basis with a dedicated risk management program called M-Files. In addition, with the'Green Supply and Procurement' Project, which is planning to start in 2023, we aim to109

KARSAN OTOMOTİV SANAYİİ VE TİCARET A.Ş. CDP Climate Change
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prioritize sustainability criteria in our supply and procurement processes as of 2024.
Moreover, we plan to calculate the rate of use of recycled materials in our electricvehicles in 2023. We foresee the use of 20% or more recycled materials in our electricvehicles in 5 years. We believe this is a good way to develop closer relations with our
suppliers and integrate them with the green procurement project.

Impact of engagement, including measures of successAs we are producing electric vehicles, we use electric batteries of German Automotive
Brand - BMW. Jest Electric and Atak Electric are equipped with same batteries andelectric motors with BMW i3 and i8 which helps our customers and our brand great
advantages while increasing the threshold between our competitors. In the year 2022,
we began to produce Autonomous Atak Electric with the contribution of Adastec
technology. Autonomous Atak Electric, Europe's first public transport vehicle with 100%
electric and Level- 4 autonomous features, has completed the final stage on theassembly line in the year 2021. Numerous suppliers have contributed our electricautonomous vehicle development studies by producing native design parts andcomponents to be implemented on our vehicles. We sold our first electric autonomousvehicle in 2020.
In 2022 we produced 304 electric vehicles and sold. We launched a new R&D study
together with our suppliers for developed 3 new electric bus models and sold 21. Also,
we produced a new car with Hydrogen Fuel Cell technology. And we got Sustainability
Bus Award.

Comment

C12.1b
(C12.1b) Give details of your climate-related engagement strategy with yourcustomers.

Type of engagement & Details of engagement
Collaboration & innovation
Collaborate with customers in creation and review of your climate transition plan

% of customers by number
57% of customer - related Scope 3 emissions as reported in C6.5
1

Please explain the rationale for selecting this group of customers and scopeof engagement
Most of our production depends on tender is that we won. Clients that open tenders forpurchase, also define vehicle requirement. Therefore we engage with prospect clients,
innovate for them, collaborate during the process in order to respond fully to their110

KARSAN OTOMOTİV SANAYİİ VE TİCARET A.Ş. CDP Climate Change
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requirements. 50% of our customers in 2021 required electric vehicles for which we
collaborate with them.
Karsan checks the environmental and social parameters of its suppliers on an annual
basis with a dedicated risk management program called M-Files. In addition, with the'Green Supply and Procurement' Project, which is planning to start in 2023, we aim toprioritize sustainability criteria in our supply and procurement processes as of 2024.
Moreover, we plan to calculate the rate of use of recycled materials in our electricvehicles in 2023. We foresee the use of 20% or more recycled materials in our electricvehicles in 5 years. We believe this is a good way to develop closer relations with our
suppliers and integrate them with the green procurement project.
The project that we anticipate to start in 2023 will be a product-based carbon footprint
study of electric, autonomous and hydrogen vehicles, and we are cooperating with
TUBITAK within the scope of this project. In this project, we aim to focus on carbon
emissions starting from the procurement stage of the product to the manufacturing
stage, the product stage and the end-of-life product stage. We will carry out this project
by working with our suppliers, especially in the raw material and procurement phase.
The project will be completed in 2024.

Impact of engagement, including measures of success
We produced 145 electric vehicles and sold in 2021. We sold our first electricautonomous vehicle in 2020. We launched a new R&D study together with our suppliers
for developed 3 new electric bus models and sold 11. Also, we sold 304 electric vehicles
in 2022.

C12.1d(C12.1d) Give details of your climate-related engagement strategy with other partners
in the value chain.
We work for transforming our business model to support low carbon economy, this includes
both developing electric or alternative fuel vehicles such as fuel cells and a climate-friendly
production process which requires extensive investment. In order to receive required
investment from financial institutions we engage with them frequently. Especially financial
institutions which adopt green finance principles are in our scope. We engage with them tocollaborate on responding to their product or business model requirements. Green financeinstitutions have a great know-how on low-carbon business models which we benefit from, totransform our practices.
Karsan checks the environmental and social parameters of its suppliers on an annual basiswith a dedicated risk management program called M-Files. In addition, with the 'Green Supply
and Procurement' Project, which is planning to start in 2023, we aim to prioritize sustainability
criteria in our supply and procurement processes as of 2024.
Moreover, we plan to calculate the rate of use of recycled materials in our electric vehicles in
2023. We foresee the use of 20% or more recycled materials in our electric vehicles in 5 years.
We believe this is a good way to develop closer relations with our suppliers and integrate themwith the green procurement project.
The project that we anticipate to start in 2023 will be a product-based carbon footprint study ofelectric, autonomous and hydrogen vehicles, and we are cooperating with TUBITAK within the111

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scope of this project. In this project, we aim to focus on carbon emissions starting from theprocurement stage of the product to the manufacturing stage, the product stage and the end-oflife product stage. We will carry out this project by working with our suppliers, especially in the
raw material and procurement phase. The project will be completed in 2024.

C12.2(C12.2) Do your suppliers have to meet climate-related requirements as part of yourorganization’s purchasing process?
No, but we plan to introduce climate-related requirements within the next two years

C12.3(C12.3) Does your organization engage in activities that could either directly or
indirectly influence policy, law, or regulation that may impact the climate?
Row 1
External engagement activities that could directly or indirectly influence
policy, law, or regulation that may impact the climate
Yes, our membership of/engagement with trade associations could influence policy, law,or regulation that may impact the climate

Does your organization have a public commitment or position statement to
conduct your engagement activities in line with the goals of the Paris
Agreement?
Yes

Attach commitment or position statement(s)UN Global Compact İmza.pdf

Describe the process(es) your organization has in place to ensure that yourexternal engagement activities are consistent with your climate commitments
and/or climate transition plan

C12.3b
(C12.3b) Provide details of the trade associations your organization is a member of, or
engages with, which are likely to take a position on any policy, law or regulation that
may impact the climate.

Trade association
Other, please specify

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Automotive Manufacturers Association

Is your organization’s position on climate change policy consistent with
theirs?
Consistent

Has your organization attempted to influence their position in the reporting
year?
Yes, we publicly promoted their current position

Describe how your organization’s position is consistent with or differs fromthe trade association’s position, and any actions taken to influence theirposition
We engage with Turkish Automotive Manufacturers Association (OSD), Turkish partnerof ACEA (The European Automobile Manufacturers Association) represents theinterests of Turkish automotive manufacturers. Karsan CEO acts as OSD’s Board
member, various Karsan mangers works in working groups of OSD, such asenvironment working group, energy efficiency working group and sustainability working
group. In these working groups we develop public policy position of the OSD, regardingthese climate related aspects which has a significant impact on both national legislation
processes and European industry policies. Also In 2021, Turkey Automotive
Manufacturers Sustainability Report was prepared as OSD. At the same time, the LCA
report on automotive production in Turkey was prepared. As Karsan, we took an activerole in the writing process of these reports. We have a favorable stance in line with
OSD’s public policy position since we actively
engage in the development process. OSD’s position on climate related issues reflects
the combined view of manufacturers. OSD anticipates the leading role of automotive
manufacturer for the transition to a low-carbon mobility service. For that end, OSD
members works on both green vehicle development and reducing environmental andclimate impacts of production such as energy and water efficiency, waste, and effluent
management. During 2022, emerging emphasis made on preparing the industry tocomply with EU Green Deal actions. Furthermore, OSD works on an industry widesustainability analysis, results of which will be published with an industry-wide
sustainability report.

Funding figure your organization provided to this trade association in thereporting year (currency as selected in C0.4)
Describe the aim of your organization’s funding
Have you evaluated whether your organization’s engagement with this tradeassociation is aligned with the goals of the Paris Agreement?
Yes, we have evaluated, and it is aligned

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Trade association
Other, please specify
UN Global Compact

Is your organization’s position on climate change policy consistent with
theirs?
Consistent

Has your organization attempted to influence their position in the reporting
year?
Yes, we publicly promoted their current position

Describe how your organization’s position is consistent with or differs fromthe trade association’s position, and any actions taken to influence theirposition
We are committed to comply with environmental conditions in our activities with themembership of the UN Global Compact. In order to prepare ourselves for SBTi projects
by being included in UN Compact Climate Ambition Accelerator, we continue to receive
training support from UN Global Compact. In this context, we are planning to take part inclimate projects regularly with the UN Global Compact.

Funding figure your organization provided to this trade association in thereporting year (currency as selected in C0.4)
Describe the aim of your organization’s funding
Have you evaluated whether your organization’s engagement with this tradeassociation is aligned with the goals of the Paris Agreement?
Yes, we have evaluated, and it is aligned

Trade association
Other, please specify
Fortune 500 Sustainability Projects

Is your organization’s position on climate change policy consistent with
theirs?
Mixed

Has your organization attempted to influence their position in the reporting
year?
Yes, we terminated our membership in the reporting year

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Describe how your organization’s position is consistent with or differs fromthe trade association’s position, and any actions taken to influence theirposition
A sustainability report study, which included Fortune 500 companies for 2022, wascarried out. In this context, a report was prepared that includes our current position bygetting a B score and the projects required to reach the A score level.

Funding figure your organization provided to this trade association in thereporting year (currency as selected in C0.4)
Describe the aim of your organization’s funding
Have you evaluated whether your organization’s engagement with this tradeassociation is aligned with the goals of the Paris Agreement?
Yes, we have evaluated, and it is aligned

C12.4(C12.4) Have you published information about your organization’s response to climatechange and GHG emissions performance for this reporting year in places other thanin your CDP response? If so, please attach the publication(s).

Publication
In voluntary sustainability report

StatusUnderway – previous year attached

Attach the document
KARSAN Sürdürülebilirlik ENG_compressed.pdf
KARSAN_SR22_CDP_draft.pdf

Page/Section reference
Karsan clarifies its Sustainability Report (2022) for its shareholders. Carbon emission
amount is regularly included in the report. You can reach electric, autonomous andhydrogen fuel cell vehicles in this segment of the report. You can reach energy
consumption, water consumption, waste consumption, GHG emissions in this segmentof the report.

Content elements
Governance
Strategy
Risks & opportunities
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Emissions figures
Emission targets
Other metrics

Comment

Publication
In voluntary communications

StatusComplete

Attach the document
Survey Report PDF and KPI Report (2).pdf
UN Global Compact İmza.pdf
SurveyCertificate_Karsan Otomotiv Sanayi ve Ticaret A.Ş._19_12_2022.pdf
BIST.pdf

Page/Section reference
For the first time in 2021, Karsan applied Borsa Istanbul Sustainability Index (BIST).
Karsan met all the requirements by providing sufficient score, therefore, Karsan was
included in BIST (B), which consists of Environmental, Social and Governanceprocesses, information on carbon emission has been shared.
Also, we sent Fortune 500 Sustainability Report.

Content elements
Governance
Strategy
Risks & opportunities
Emissions figures
Emission targets
Other metrics

Comment

Publication
In mainstream reports

StatusComplete

Attach the document
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Karsan Annual Report 2022.pdf

Page/Section reference
Karsan Annual Report - 2022, p. 33-62 / our activities in 2022. Karsan Annual Report 2022, p. 63-68 / sustainability principles compliance framework.

Content elements
Governance
Strategy
Emissions figures
Emission targets
Other metrics

Comment

Publication
In voluntary communications

StatusComplete

Attach the document
Hydrogen_KAP_Bildirimi.pdf

Page/Section reference
All pages

Content elements
Other metrics

Comment
Public Disclosure on e-ATA Hydrogen Fuel Cell.

Publication
In voluntary communications

StatusComplete

Attach the document
NalburBerrakYavasOzcan_FinalRevision.pdf

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394-Article Text-922-1-10-20221024 (5).pdf

Page/Section reference
All pages.

Content elements
Strategy
Risks & opportunities
Other metrics

Comment
We published articles in journals indexed by SCOPUS and SCI expanded.

C12.5(C12.5) Indicate the collaborative frameworks, initiatives and/or commitments related
to environmental issues for which you are a signatory/member.
Environmental
collaborative
framework, initiative
and/or commitment
Row UN Global Compact
1
Other, please specify
Fortune 500, BIST
Sustainability Index

Describe your organization’s role within each framework,
initiative and/or commitment

We are committed to comply with environmental conditions in our
activities with the membership of the UN Global Compact. In orderto prepare ourselves for SBTi projects by being included in UN
Compact Climate Ambition Accelerator, we continue to receive
training support from UN Global Compact. In this context, we areplanning to take part in climate projects regularly with the UN Global
Compact.

C15. Biodiversity
C15.1(C15.1) Is there board-level oversight and/or executive management-level
responsibility for biodiversity-related issues within your organization?
Board-level oversight and/or
executive management-level
responsibility for biodiversityrelated issues
Row Yes, executive management-level1
responsibility

Description of oversight and objectives relating tobiodiversity

Environment, Health and Safety Administrator (who isalso responsible for sustainability management system)
reports to CEO directly about sustainability, environment
and energy activities for WCM.

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C15.2
(C15.2) Has your organization made a public commitment and/or endorsed any
initiatives related to biodiversity?
Indicate whether your organization made a public commitment or endorsed any
initiatives related to biodiversity
Row
1

No, but we plan to do so within the next 2 years

C15.3(C15.3) Does your organization assess the impacts and dependencies of its value
chain on biodiversity?
Impacts on biodiversity
Indicate whether your organization undertakes this type of assessment
No, but we plan to within the next two years

Dependencies on biodiversity
Indicate whether your organization undertakes this type of assessment
No and we don’t plan to within the next two years

C15.4(C15.4) Does your organization have activities located in or near to biodiversitysensitive areas in the reporting year?
Not assessed

C15.5(C15.5) What actions has your organization taken in the reporting year to progress
your biodiversity-related commitments?
Have you taken any actions in the reporting period to progress your biodiversityrelated commitments?
Row
1

No, we are not taking any actions to progress our biodiversity-related commitments, but weplan to within the next two years

C15.6(C15.6) Does your organization use biodiversity indicators to monitor performanceacross its activities?
Does your organization use indicators to monitor
biodiversity performance?

Indicators used to monitor
biodiversity performance

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Row
1

No, we do not use indicators, but plan to within thenext two years

Response indicators

C15.7(C15.7) Have you published information about your organization’s response tobiodiversity-related issues for this reporting year in places other than in your CDP
response? If so, please attach the publication(s).
Report typeContent
elements

In voluntary sustainability report or Impacts onother voluntary communications
biodiversity

Attach the document and indicate where in
the document the relevant biodiversity
information is locatedpage 89
1

1KARSAN Sürdürülebilirlik ENG_compressed.pdf

C16. Signoff
C-FI(C-FI) Use this field to provide any additional information or context that you feel isrelevant to your organization's response. Please note that this field is optional and is
not scored.

C16.1(C16.1) Provide details for the person that has signed off (approved) your CDP climatechange response.
Row
1

Job title

Corresponding job category

Environment, Health and Safety
Administrator

Other, please specify
Environment, Health and Safety
Administrator

Submit your response
In which language are you submitting your response?
EnglishPlease confirm how your response should be handled by CDP
I understand that my response will be sharedwith all requesting stakeholders

Response
permission

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Please select yoursubmission options

Yes

PublicPlease confirm below
I have read and accept the applicable Terms

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