Kordsa Teknik Tekstil : 2022SUSTAINABILITYREPORT

KORDSA SUSTAINABILITY REPORT 2022

Dear Stakeholders,

As a country, we experienced one of the greatest disasters in our country's history in 2023. We are deeply saddened by the destruction in 11 cities caused by two major earthquakes on February 6th, and we commemorate our citizens who lost their lives in the earthquake.

As Kordsa, we understand that this recovery process will last until all wounds are healed. We aim to stand by all the local stakeholders in the region and continue to contribute to the region's recovery.

We have been supporting Sabancı Group's relief efforts in the earthquake zone since the first day. For this reason, we supported the disaster area by building damage assessment work with our Construction Reinforcement business unit, first aid operations with our Health Unit, and search and rescue efforts with our Emergency Response Team.

We are doing our best to support our country in these difficult times and continue

to reinforce life.

CONTENTS
About the Report	04
Messages to
Our Stakeholders	05
Message From
Our Chairperson	06
Message From Our CEO	07
Corporate Profile	08
Kordsa Facts and Figures	10
Products, Industries, Markets...	11
Kordsa In The World	12
2022 ESG Performance Scorecard..13
Strategy and Governance	14
Kordsa Strategy House	16
Alignment Of Strategies	17
Our Sustainability Materiality
Approach	18
Material Sustainability Topics..19
Kordsa Materiality Matrix	20
Material Sustainability Topics
Along Our Value Chain	21
Corporate Governance	22
Business Ethics and Compliance..24
Sectoral and Global Trends	28
ESG Risk Management	29

Sustainability Management 32
The Last Three Years Of Our
Sustainability Journey	34
Sustainability Management
Structure	35
Communication With Our
Stakeholders	37
Material Topics and Un 2030
Global Goals	43
Compliance With Developing
Global Sustainability
Standards	45
Sustainability
Facilitators at Kordsa	46
R&D and Innovation	48
Technology and Digitalization...	62
Economy and Growth	65
Sustainable Growth	67
Sustainable Supply Chain
Management	70

Environment and Climate	73
Raw and Other Materials
Management	75
Energy Management	78
Emissions (Carbon) Management...	81
Waste Management	83
Water and Wastewater Management.86
Employees and Community	89

Occupational Health and Safety..91

Human Rights	94
Employment and Labor Practice...	96
Talent Management and
Organizational Development	101
Equal Opportunities and
Diversity	104
Community Development	109

Performance Indicators	111
Economic Performance
Indicators	112
Social Performance
Indicators	113
Environmental Performance
Indicators	123

Annexes135

Sustainability Materiality
Communications	136
Key Stakeholder Communication
Platforms	137
Employee Sustainability Survey.138
OHS Committees	140
Memberships	141
UNGC Content Index	142
Indirect Impacts For UN 2030
Sustainable Development Goals..143
GRI Content Index	144
Kordsa 2022 Reporting Guidance.148
Kordsa 2022 External
Assurance Report	154
Kordsa 2022 Scope 3 Ghg
Verification Report and
Certificate	156
Contacts	158
Report Contact	159

ABOUT THE REPORT

• With our ninth sustainability report that reflects Kordsa's economic, environmental, and social performance in
  2022, we offer our stakeholders the opportunity to evaluate our impacts resulting from our activities and to evaluate our monitoring, improvement,
  and measurement steps''in managing them.

The Scope and Topic

Boundaries

The data in this report covers Kordsa's activities from January 1, 2022, to December 31, 2022. We also provide 2020 and 2021 data to monitor the trends. In addition to determining the process of the report content, we explain the boundaries of the material topics in the Our Sustainability Prioritiessection of this report.

The list of topics that we include in our materiality matrix are all relevant to our global operations with no limitations.

This year the scope of our report has not changed. Externally our suppliers and contractors also have impacts regarding these topics. We provide details

on management of impacts under

Evaluation and Selection of Supplierstopic of this report. Regarding our economic performance, we provide figures representing the company, not as country specific.

The Principles

This report is prepared in accordance with the GRI Standards.In the process of identifying our strategic sustainability topics, we took into consideration GRI's principles of materiality, stakeholder inclusiveness, sustainability context and completeness. Our report also covers the 10 principles of the UN Global Compactthat we signed in 2014. UNGC Content Indexis located here.

With our targets on material topics, we directly address eight of UN Sustainable Development Goals.Our report also covers the International Finance CorporationIFC's Performance Standards on Environmental and Social Sustainability that were established to pinpoint, assess, and manage social and environmental risks in project finance. Additionally, we analyzed the relevant SASB's (Sustainability Accounting Standards Board)topics and KPIs of the sectors Kordsa serves and explained how we support our customers' sustainability targets.

External Audit and

Verification

Selected 2022 performance indicators are audited by PWC.

Scope 3 calculations are verified by QSI.

Next Report

We aim to publish the tenth of our sustainability reports, which we plan to prepare annually, in 2024.

About the Report

Messages to Our Stakeholders

Corporate Profile

Strategy and Governance

Sustainability Management

Sustainability Faciliators at Kordsa

Economy and Growth

Environment and Climate

Text	Throughout the report, you can reach the relevant topic
link by clicking on the bold and underlined texts.

You can reach any part of the report by using the navigation pane on top of each page.

Related video on pages with play button you can watch the content.

All items in the table of contents page are linked to relevant headings. You can simply click on the heading in the contents page to directly go to the relevant topic in the report.

You can move forward and backward through the pages by clicking on the arrows at the right end of each page.

Employees and Community

Performance Indicators

Annexes

KORDSA SUSTAINABILITY REPORT 2022

4

MESSAGES TO OUR STAKEHOLDERS

We Reinforce Life!

Each moment in life is a unique source of happiness. We pioneer advancements in reinforcement technologies, drawing inspiration from the courage of ongoing development and the exhilaration of exploration.

We take each step with passion towards a safe, easy, efficient, and sustainable world through tire reinforcement, construction reinforcement and composite technologies we develop.

About the Report

Messages to Our Stakeholders

Corporate Profile

Strategy and Governance

Sustainability Management

Sustainability Faciliators at Kordsa

Economy and Growth

Environment and Climate

Employees and Community

Performance Indicators

Annexes

KORDSA SUSTAINABILITY REPORT 2022

5

MESSAGE FROM OUR CHAIRPERSON

• In February 2023, as our report was being prepared for publication, our nation suffered one of the most significant natural catastrophes it has ever faced. We honor the memory of all the citizens who lost their lives during the two consecutive earthquakes. Since the onset of this tragedy, Kordsa has been
  committed to extending essential assistance to the affected region, utilizing both tangible resources and moral support to aid in the recovery process''.

About the Report

Messages to Our Stakeholders

Corporate Profile

Strategy and Governance

Sustainability Management

CEVDET ALEMDAR

Chairman

Dear Stakeholders,

Throughout 2022, the global economy encountered an unrelenting sequence of substantial, compounding challenges. Commencing

with the COVID-19 pandemic, the turbulence extended with the war in Ukraine, giving rise to subsequent food and energy crises, escalating inflation, and a contracting debt landscape. These hardships were further exacerbated by the pervasive climate emergency felt across every corner of the globe.

Amidst these complex challenges, Kordsa remained resolute in generating enduring value for our economy throughout 2022 while steadfastly adhering to sustainable growth objectives.

We increased our turnover by 134% compared to 2021 and reached TRY 18.4 billion. Our net profit experienced a substantial 76% year-on- year escalation, soaring to TL 1.5 billion. In addition, we continued our significant domestic and international investments.

With these endeavors, we made the strategic decision to invest USD 43 for our facilities and our products throughout 2022. These investments encompass the augmentation of our polyester yarn production line, introducing an additional dipping line dedicated to manufacturing single cords used in high-performance tires and enhancing Kratos polypropylene fiber synthetic reinforcement production capacity.

We complemented our recent organic expansion with inorganic growth strategies. In pursuit of this goal, we successfully concluded the acquisition of the majority shares of the Italian firm Microtex Composites in 2022, following our acquisition of four companies in the

United States over the past few years. This strategic move fortified Kordsa's presence within the European market, broadened our robust portfolio of aviation clientele, and extended the scope of our services in the automotive and motorsports sectors.

At Kordsa, our commitment to sustainable mobility drives us to employ recycled nylon and recycled polyester yarns in tire reinforcement technologies; within composite technologies, we manufacture reinforcement materials that make vehicles lighter and reduce fuel consumption. Throughout 2022, we continued to focus on advancing sustainable chemicals, bio-based polymers, and polymer recycling technologies.

Within our construction reinforcement business unit, we are broadening our impact area and product portfolio by developing products that ensure enduring durability in concrete structures. Notably, Kordsa's Kratos Structural Reinforcement product line is pivotal in fortifying structures against earthquakes. Through our expertise in structural reinforcement, we bear the significant responsibility of enhancing the seismic resilience of our nation's building infrastructure.

'Data' stands as our most potent asset in the pursuit of heightened production efficiency, enhanced productivity, and the facilitation of agile and precise decision-making. Therefore, strengthening our digital infrastructure and adopting a data-based business culture is more important than ever. Accordingly, with our new digitalization process, which we call 'Kordsa 5.0', we first started to transform our enterprise resource planning (ERP) systems globally.

Within the framework of our risk analysis studies, we actively monitor climate change-related risks. We systematically evaluate the risks and opportunities that may arise from possible legislative changes during the transition to a low-carbon economy, extreme weather conditions due to climate change, as well as shifts in customers' inclinations.

Aligned with our dedication to the Science-Based Targets Initiative (SBTi), with which we actively contribute toward preventing global

warming from reaching 1.5°C, Kordsa is firmly committed to achieving net zero emissions by 2050. We also ranked in the Global A list in the 2022 CDP 'Supplier Engagement Rating,' illustrating the degree to which companies engage their suppliers in combatting climate change. Our performance with the CDP Climate Change Program merited a 'B' rating. With the 2022 CDP Water Program, we were among 107 companies in the Global A list worldwide.

Through our consistent dedication to sustainability year after year, we have earned recognition in the inaugural 'BIST Sustainability 25 Index,' a newly established benchmark, as well as in the 'BIST Participation 30 Index'.

At Kordsa, sustainability is deeply ingrained in our purpose and strategy. We collaborate closely with both our suppliers and customers to uphold social and environmental sustainability across the entire lifecycle - from sourcing raw materials to delivering products to our customers. Throughout 2022, our dedication to supporting diversity and inclusion at all levels of company management continued. We also remained committed to safeguarding human rights within our supplier network and our entire value chain. We unveiled our vision for Diversity, Equality, and Inclusion in alignment with these principles.

In the 100th anniversary of our Republic, we will continue to generate economic, social, and environmental benefits for the ecosystem, including our business partners and customers, with our future projects and future-empowering technologies.

I would like to express my heartfelt gratitude to all our stakeholders with whom we cooperate in delivering Kordsa's vision of reinforcing life and all our employees who contributed massively to our success.

Kind Regards,

CEVDET ALEMDAR

Chairman

Sustainability Faciliators at Kordsa

Economy and Growth

Environment and Climate

Employees and Community

Performance Indicators

Annexes

KORDSA SUSTAINABILITY REPORT 2022

6

MESSAGE FROM OUR CEO

• In February 2023, at the time of our report's publication, our nation suffered one of the most significant natural disasters in its history. We are deeply saddened by the catastrophic effects of the massive twin earthquakes that impacted 11 provinces, causing injuries or loss of life to thousands of our citizens. Our hearts go out to those who lost their lives, and we extend our condolences to their families and our entire nation. At Kordsa, we have been actively providing support to the affected region since the very beginning,
  and we remain steadfast in our commitment to stand beside our fellow citizens'throughout' the entire reconstruction process until all wounds are healed.

About the Report

Messages to Our Stakeholders

Corporate Profile

Strategy and Governance

Sustainability Management

İBRAHİM ÖZGÜR YILDIRIM

CEO

Dear Stakeholders,

2022 was a deeply challenging year, prompting a reevaluation of the economy, social dynamics, business approaches, and all overarching

priorities on the global agenda. Businesses have transitioned towards cultivating flexibility and agility, devising effective solutions for challenges related to energy, supply chains, and raw materials. Sustainability and digitalization have retained their significance in shaping the foundation of the emerging world.

At Kordsa, 2022 marked a profound year of change and evolution. As a result of our comprehensive analyses, we have created a new strategy that is 'growth-oriented' and centered on innovation, digitalization, sustainability, and the customers.

Our new strategy involves extending our R&D strength from Türkiye to other operational domains globally and establishing technical centers to cater to local needs in the forthcoming phases. We are cultivating ecosystems that harness the collective intellect of our over 5,000 employees, suppliers, and all stakeholders to generate value for our esteemed customers.

By investing in our composites business line, we successfully concluded the acquisition of the majority shares in the Italian firm Microtex Composites. By establishing a new facility in Europe, we have significantly broadened our global footprint in the composites domain while introducing the super luxury automotive sector and motorsport

entities into our customer portfolio.

At Kordsa, which is widely regarded as a global reinforcement brand, we manage our performance in line with our sustainability goals with respect and responsibility for the society and environment we live in. Expansion through R&D and technology investments in our three main business areas, supporting the continuous development of our talented human resources, responsible use of natural resources, and creating sustainable value for all our key stakeholders and society through social development projects form the basis of our sustainability approach.

Our journey has been about reinforcing life while enhancing our economic competitiveness through the principle of 'achieving more with fewer resources' ever since our inception. We have decreased fuel consumption by reducing tire rolling resistance, contributing to the creation of lightweight vehicles using our composite technologies, and facilitating sustainable construction initiatives through construction reinforcement technologies. Our enduring commitment to science and innovation continues to represent the core of our business model.

We invest in clean technologies to ensure efficient energy use, reuse our materials, as well as reduce emissions, waste, and water consumption. Moreover, together with our R&D and production teams, we develop continuous improvement projects to increase the use

of bio-based and recycled materials as well as the rate of renewable energy.

In 2022, 31% of the electricity we consumed at Kordsa was sourced from renewable energy. Our dedicated investments and expenditures for environmental initiatives surpassed USD 6.1 million. With the objective of contributing toward preventing global warming from rising above 1.5°C, we strive to realize net zero emissions by no later than 2050. We are committed to the Science-Based Targets Initiative, and our target approval process was completed before our report was published. Furthermore, by 2030, our resolute aim encompasses a 46.2% reduction in emissions compared to the levels of 2019. Our

ultimate goal is to transition into a net zero company by 2050.

Within the scope of the CDP Program, which we have been reporting since 2016, we have steadily increased our rating since the first year. In the 2022 CDP Climate Change Program, we secured a rating of 'B.' Amidst the evaluation of 15 thousand companies in the 2022 CDP Water Program, Kordsa emerged as one of the 107 leading companies in the 'A' list with high performance worldwide. In addition to our success in the water program, we were also included in the Global A list in the 2022 CDP' Supplier Engagement Rating'.

Concurrently, with our practices focusing on benefiting future mankind, we were awarded the 'Best Employer Certificate' by the independent research institution Great Place to Work® in 2022 in the four countries where we operate, namely Brazil, Indonesia, Thailand, and Türkiye. Guided by our commitment to empowering our workforce, we continuously conceive and execute innovative strategies within our expanding global organizational framework.

Today, one out of every three automobile tires and two out of every three aircraft tires produced worldwide are reinforced by Kordsa. Beyond tires, our products are also used to reinforce the fuselages and cabins of new-generation airplanes and airport runways. Furthermore, we are one of the companies reinforcing NASA's Orion moon space capsule. All these achievements encapsulate the essence of our motto: 'We Reinforce Life.'

I extend my sincere gratitude to all our exceptional employees whose tireless dedication has been the cornerstone of our 50-year journey, our shareholders for their steadfast support, our invaluable suppliers, and our esteemed customers. With unwavering confidence, I look forward to our continued journey in reinforcing life together.

Sincerely,

İBRAHİM ÖZGÜR YILDIRIM

CEO

Sustainability Faciliators at Kordsa

Economy and Growth

Environment and Climate

Employees and Community

Performance Indicators

Annexes

KORDSA SUSTAINABILITY REPORT 2022

7

CORPORATE PROFILE

In all areas of operation, we develop our products with the intention of fostering sustainability, while our growth is driven by the pursuit of generating value across social, environmental, and economic dimensions.

About the Report

Messages to Our Stakeholders

Corporate Profile

Strategy and Governance

Sustainability Management

Sustainability Faciliators at Kordsa

Economy and Growth

Environment and Climate

Employees and Community

Performance Indicators

Annexes

KORDSA SUSTAINABILITY REPORT 2022

8

CORPORATE PROFILE

• As Kordsa, we develop innovative and value- added reinforcement technologies for a safer, more efficient, and sustainable world. With our tire reinforcement technologies, we reinforce one in every three car tires and two in every three aircraft tires manufactured in the world today. Through our composite technologies we reinforce the wings, bodies, cabin interiors and engines
  of aircraft while reinforcing infrastructure and superstructures by means of our construction reinforcement technologies. We carry the field that we reinforced with our vision, "We reinforce life" to aerospace.
  We reduce fuel consumption by reducing rolling resistance of tires and helping to produce lightweight vehicles thanks to our composite technologies. Moreover, we contribute to our stakeholders' sustainability goals by using recycled materials in tire reinforcement technology and biobased materials in composite technology. We provide construction
  reinforcement technologies for sustainable building projects, which stand out with their''low carbon emission and durability features.

AWARDS and ACHIEVEMENTS

Kordsa Honored with the 2022 Pirelli

Supplier Award!

Pirelli, the tire manufacturer industry

leader with over 15,000 global suppliers,

annually recognizes and commends 9

outstanding suppliers based on product

quality, service excellence, performance,

innovation, and sustainability criteria.

Following the assessments conducted

in 2022, Kordsa proudly received the

prestigious 2022 Pirelli Supplier Award

in recognition of its exceptional textile

reinforcement contributions within the

Service Level category.

Kordsa Triumphs at the Sabancı Golden

Collar Awards, Securing First Place in

Two Categories!

At the 13th Sabancı Golden Awards,

Kordsa achieved a remarkable feat by

securing the prize in not just one but two

distinct categories, innovation and

sustainability.

About the Report

Messages to Our Stakeholders

Corporate Profile

Strategy and Governance

Sustainability Management

Sustainability Faciliators at Kordsa

Economy and Growth

Environment and Climate

Employees and Community

Performance Indicators

Annexes

KORDSA SUSTAINABILITY REPORT 2022

9

KORDSA FACTS AND FIGURES

Corporate Profile

Sustainability Profile

About the Report

Messages to Our Stakeholders

	18.44 BILLION TL
		TURNOVER
ECONOMIC 4	6	13	2
	CONTINENTS	COUNTRIES	FACTORIES	R&D CENTERS
		GLOBAL FOOTPRINT
		5,092
		EMPLOYEES (INCLUDING SUB-CONTRACTORS)
SOCIAL	49 YEARS

281,409 Hours

TOTAL TRAINING

5.04 Million USD

Total savings resulting

from the reuse of materials

ENVIRONMENTAL

6,178,383 USD

The total amount of our environmental

investments and expenditures

1.65 BILLION TL

REAL OPERATING PROFIT

34%	26%	29%	11%
EMEA	ASIA PACIFIC	NORTH AMERICA	SOUTH AMERICA
	REGIONAL REVENUE SPLIT
	37.4% FEMALE*	62.6% MALE*

	0 FATAL OCCUPATIONAL ACCIDENTS AND DISEASES
		58,15 Hours
		AVERAGE TRAINING
2.73 MILLION PIECES			%29
Number of reused materials		Global reuse ratio
2%	6%	59.3%	4.7%	27.6%	0.4%
WASTE	PROJECT
EMISSION MANAGEMENT	WASTE RECYCLING	DISPOSAL	CONSULTANCY	INVESTMENTS	TRAINING

Corporate Profile

Strategy and Governance

Sustainability Management

Sustainability Faciliators at Kordsa

Economy and Growth

Environment and Climate

Employees and Community

Performance Indicators

Annexes

KORDSA SUSTAINABILITY REPORT 2022

* Data represents white-collar employees. Among all employees, the rate of female employees is 16.05%.

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