The following actions are taken in purchasing and supply chain activities to support sustainability efforts:

• Content regarding energy efficiency/use of requested materials (PRs) in purchasing processes is determined in the Green Procurement Policy, Evaluate Bids Quotations MM Procedure, MM Check Stock Availability and Create PR Procedures. Additionally, the practices are carried out within these scopes. detailed information, please contact our Procurement Department.
• In the realm of sustainability, we are focusing on energy efficiency opportunities to support SOCAR Türkiye's decarbonization strategy. In this context, we started using electric forklifts in our sales warehouses as of March 2023.
• Employees of service providers/contractors operating in SOCAR Türkiye Refinery Petrochemical Business Unit site must get an obligatory training session before entering the operation site. Environmental contents are included in the training scope. For detailed information, please contact our HSE Department.
• For service providers/contractors operating within the SOCAR Türkiye Refinery Petrochemical Business Unit site, as part of procurement and supply chain processes, annual field inspections are conducted with the participation of the Procurement Department and other relevant departments. Any deficiencies identified during field inspections are reported to the service providers/contractors for corrective actions. Necessary actions are taken in accordance with procedures for non-compliant service providers/contractors. For more information on this matter, please contact our Procurement Department.
• As SOCAR Türkiye, we have memberships in the UN Global Compact and the Business and Sustainable Development Council. For detailed information, please contact our Communication and Sustainability Department in this context.
• All group companies under SOCAR Türkiye carry out their activities within the scope of the SOCAR Türkiye Code of Ethics, prepared in accordance with the Constitution of the Republic of Türkiye, the United Nations Universal Declaration of Human Rights and the International Labour Organization's fundamental conventions. As well as our employees, we expect our business partners and suppliers/contractors acting on behalf of SOCAR Türkiye in accordance with our Code of Ethics. For detailed information on this matter, you may review the Code of Ethics shared on SOCAR Türkiye and Petkim websites.

SOCAR Türkiye's business strategy focuses on systematically managing the social, economic and environmental impacts of its activities, beyond financial contribution. This approach emphasizes that the company not only aims for profit, but also considers its impact on society, the economy and the environment.

We adopts policies that prioritize the management of social, economic and environmental impacts in order to achieve our goals. Our activities, shaped in line with our sustainability priorities and the United Nations Sustainable Development Goals, guide the outcomes of our performance. In this context, special importance is given to reducing water consumption and circular economy issues in company policies.

In line with our sustainability strategy, we aim to minimize the risks arising from the effects of climate change, while also utilizing the opportunities arising from these results with maximum benefit. As part of our strategy, we focus on reducing water consumption from our operations and implement water efficiency initiatives operationally. On the other hand, we continue our water recovery and receiving environment quality improvement efforts without slowing down.

As part of our sustainability strategy, we aim to minimize the risks arising from the effects of climate change and, at the same time, maximize the opportunities that result from these outcomes. As a part of our strategy, we focus on reducing water consumption from our operations and implement operational methods to ensure efficient water use. Furthermore, we persistently work on water recycling and enhancing environmental quality in the recipient environment without interruption.

In order to be prepared for the climate change risks anticipated on a global scale, we closely monitor the efforts carried out by relevant authorities under the water management heading. In the light of these efforts, our companies STAR Refinery, Petkim, and SOCAR Storage, which operate within SOCAR Türkiye Refinery and Petrochemical Business Unit, along with local governments and other stakeholders, are meticulously assessing potential challenges they may encounter until the year 2100. According to the studies conducted, in the event of the realization of global climate change risks, it is predicted that the temperature in the region where SOCAR Türkiye Refinery and Petrochemical Business Unit operates will increase between 3.5 to 5°C by the year 2100. The adverse effects arising from this temperature increase will make water management in our region more challenging.

The Güzelhisar Dam, which falls under the responsibility of Petkim, plays a crucial role in meeting the water needs in our region. It is expected that the Güzelhisar Dam, utilized by the facilities of SOCAR Türkiye Refinery and Petrochemical Business Unit and our partner organizations, will continue to provide uninterrupted water supply to the region in the future. However, the decrease in other water sources in the surrounding areas increases the demand for clean water from the Güzelhisar Dam. Factors such as climate change-induced sudden and irregular heavy rains and prolonged dry seasons lead to the risk of inadequate basin water reservoirs and deterioration of water quality. Therefore, our priority is to make future needs and resource utilization more efficient through planned collaboration with stakeholders.

The Güzelhisar Dam, under the operational responsibility of Petkim, plays a vital role in meeting the water demands of our region. Facilities within the SOCAR Türkiye Refinery and Petrochemical Business Unit, as well as stakeholder organizations, rely on the Güzelhisar Dam for their water supply, and we anticipate its continued provision of uninterrupted water to the region in the future. However, a diminishing supply of water from other sources in the surrounding areas has amplified the demand for clean water from the Güzelhisar Dam. Additionally, factors like irregular and heavy rainfalls or the prolonged dry seasons, attributed to climate change, raise concerns about potential risks of insufficient water reservoirs in the basin and declining water quality. Consequently, our foremost priority is to plan and collaborate with stakeholders to enhance the efficiency of future resource utilization and meet the region's water needs.

As a result of the efforts carried out in previous years within Petkim factories for this purpose, Petkim's clean water usage has decreased by 20% compared to previous years. With the implementation of the projects listed in Table 1 by 2033, it is planned to further increase this rate.

In SOCAR Türkiye Refinery and Petrochemical Business Unit, we are taking actions to address the risks related to climate change in water supply and management. In order to be a partner in addressing this issue in our region, we are engaged in collaborative efforts with relevant stakeholders and local governments to reduce water usage.

Apart from the initiatives conducted in our region, we are executing short, medium, and long-term plans, projects, and actions tailored to our facilities.

In addition to our efforts to enhance water efficiency and sustainability of supply, we are working to improve the quality of treated water to reduce our impact on recipient environments. One of our most significant projects, the Petkim New Wastewater Treatment Plant Project - Phase 1, which we have initiated the construction of, aims to complete the construction process in 2024, with subsequent phases to be finalized in the following years. The project is intended to provide treated water discharge quality that exceeds current regulatory obligations. On the production side, additional investments and engineering work continue to improve the efficiency of the Petkim Wastewater Treatment Plant Process. You can find a list of projects related to this matter that will be carried out in the upcoming period in Table 2.

Petkim General Water Management Improvement Projects

PROJECT NAMEs	SAVING	DESCRIPTION
Güzelhisar Dam pipe line repair and maintenance works	ton Raw water	Plant raw water reliability will be ensured by line maintenance through works.
Reducing the use of cooling water also reduces the amount of continuous blowdown from cooling towers.	ton Cooling Water	Since 1% of the cooling water circulation is blowdown, the effluent will decrease by 1% of the total savings.
Recovery of Steam Condensate of Plants	ton Condensate	Since the blowdowns go directly to the wastewater system, all the gains will reduce the amount of effluent.
Reducing fire water usage	ton Fire Water	Reducing leaks, renewing fire lines, preventing their use in cooling processes.
Blowdown Optimization	ton Boiler feed water	Since the blowdowns go directly to the wastewater system, all the gains will reduce the amount of effluent.
Water saving at entire complex with operational improvement and maintenance activities.	Ton Raw Water	2021 achivement is 4,1%. 2022 target is 1% saving and 5 initiatives realisation
Installing meters to monitor waste treatment raw water consumption and the amount of consumption.	ton Raw Water	The raw water used is discharged by the waste treatment system. The amount of effluent that is reduced will therefore decrease.
Deaerator working pressure and steam consumption optimization	ton Boiler feed water	Blowdown in Petkim boilers will be reduced by 1% of the decreasing steam.
Waste Water Recovery of waste water treatment plant effluents	ton Process Water	Target is 60% of waste water recovery

Petkim Wastewater Management Improvement Projects

PROJECT NAMEs	SAVING	DESCRIPTION
Ultra filtration in PVC wastewater	PVC PLANT	Water and product recovery with ultra filtration in PVC wastewater
Phase – I New Holding Press Project & Phase – II New wwtp stages construction	PWWTP	An alternative 15000 m3 waste water holding pool will be built inside the AGU, such as the existing holding pool, and the wastewater will be rested and sent to biological treatment in a more stable pollution.
Vacuum Truck Discharge Area Project	PWWTP	There is no vacuum discharge unit in the existing Petkim AGU unit, and waste vacuum trucks generated within the units throughout the entire peninsula are discharged into the holding basin, creating undewatered waste sludge. Since the waste sludge formed is very difficult to manage, it was decided to build a vacuum truck discharge unit to make sludge management more efficient.
Treatment of PTA Wastewater	PWWTP	The impurities in the PTA Wastewater, which cannot be treated in the existing Petkim wastewater treatment plant, will be removed at the uniq process.
Petkim Wastewater Treatment Plant Biological Sludge Transfer System Establishment Project	PWWTP	When Petkim biological treatment is affected by factory upsets, additional sludge formed should be disposed of quickly and wastewater should be treated better.
Petkim WWTP Chemical Decanters System Revision	PWWTP	Centrifuge decanters cannot be operated due to insufficient electrical & instrumental infrastructure of chemical centrifuge decanters in the existing Petkim AGU. Infrastructure strengthening work has been initiated for the commissioning of decanters.
Petkim Chemical ww Treatment System Sludge Transfer System Establishment Project
AGU & 445 Mobile Oil Water Separator Supply	PWWTP	The process of procuring a mobile oil separator has been initiated for the recovery and removal of hydrocarbons & slops remaining on the water surface of the Holding and Inspection Pools.
Drain system Renewing at Peocess Sites	Plants	It covers projects to reduce the products in wastewater sent to the wastewater treatment system of factories; AROM, ACN, ETHYLENE, EO/EG Plants.