Haci Ömer Sabanci Holding A.S. (SAHOL) Earnings Call Transcript & Summary

Good morning and good afternoon, depending on your time zone. Welcome to Sabanci Holding Sustainability Day. Today, we'll be presenting our group strategy, sustainability road map, targets and ESG governance, 2020 ESG performance, adapting to future work and, finally, transforming our portfolio for the future. On the stage today, we have Chief Financial Officer, Orhun Kostem; and Group President of Human Capital and Sustainability, Hakan Timur, with us. Now I will leave the floor to our group CFO, Orhun Kostem, for introductions.

Thank you, Kerem. Again, good morning, good afternoon, everyone. We're very happy to be together today to talk about Sabanci Holding strategy, at first in general, and then specifically talk about our strategy on sustainability. Now in Sabanci Holding, going forward, what we hope you will hear from us over and over again is we would be focused on growth of our business units. And in doing so, we would like to ensure that we can generate above-average capital returns to our portfolio. But each time we do, we want to ensure that sustainability is an integral part of our business and our decision-making process. So therefore, today, we have invited Hakan Timur and [ host him ], so that he will walk us through our sustainability strategy at Sabanci Holding. But before we do, let me give you a quick recap of the group's strategy. As I'm sure you have seen this in a number of times, our strategy house. But just to highlight a few things which could be of importance today. One, obviously, our purpose statement is that we unite Turkey and the world for a sustainable life with leading enterprises. Therefore, you see sustainability is part of our purpose. And obviously, it's not by presentation, it's because that's the way -- how we feel we should conduct our business. Secondly, in terms of the strategic direction that we have. What we would like to do is to ensure that we provide a wider customer experience. We would like to transform ourselves into an agile organization with global and local footprint. We want to lead in digital and material technologies and, obviously, make sure that we adapt to future of people and work. And as you see, part of our strategic direction entails pioneering in sustainability. So therefore, we feel we would -- we're trying to deliver sometimes better than the benchmarks to ensure that it becomes an integral part of the process. Now if you look at our individual business units, you will see that as we grow and protect the core of our business, or as we invest in new growth platforms through adjacencies and transformative investments, especially in new economy items, sustainability is an integral part of our business and a comprehensive part of our strategy, as we hope to demonstrate to you today. Now without further ado, I will turn to Hakan Timur, our Group Human Capital and Sustainability President, to walk you through our strategy on sustainability today. Hakan?

Thank you, Orhun. Good afternoon and good morning to all our participants from all around the world. I would like to welcome all of you once again. Since this is the first sustainability day that we organized, I pretty much assume that I'm not very familiar for most of the participants of today, so let me start a very quick introduction about myself. As mentioned, my name is Hakan Timur, and I've been working for the Sabanci Group for almost 25 years. Got the chance to work in different companies and in all the spheres of our group, industrials, energy, building materials, retail. And since 2018, I've been pursuing the role of Group HR President. And for the last 1.5 years, also I've been pursuing the Chief Sustainability Officer role, trying to coordinate and -- the all ESG initiatives group-wide with my leaders and the teammates and which I do have one of us together with me today -- together today. Derya is here, and so I would like to give the word to Derya for her introduction as well.

Thank you, Hakan. Good morning and good afternoon, everyone, depending on where you are. My name is Derya Özet Yalgi. I have -- I am working as a Sustainable Director for the group, for Sabanci Group. I have more than 15 years of experience in developing sustainability strategies for both financial and nonfinancial industries, including a consultancy background. And thank you, Hakan, so back to you.

Okay. Thank you. As Orhun mentioned, we have identified pioneering sustainability among our 5 key strategic directions. And in this section, I will explain what we have done so far to turn this strategic direction into actions. I would like to start with a bit of backdrop before going into details. Actually, at Sabanci Group, we always considered sustainability as an integral part of our mission. Our group companies develop their own strategies on this, and some of them have even become best practices in Turkey and other regions throughout the years. Having said that, we all know that ESG-related issues gained momentum all around the world, especially during the pandemic. Obviously, European Union also played an important role in terms of raising the bar on such actions. We have carefully analyzed all these signals even before the occurrence of some recent developments, such as the U.S. rejoining the Paris Agreement or the launch of Carbon Border Adjustment Mechanism. Therefore, in mid-2020 we started a large program to translate our increased ambition into a road map. The first thing that we did was to define the ownership for the execution of ESG initiatives at the holding level. We established group sustainability organization structure with ownership and representation at the group presidency level, also enriching the organization with sustainability experts and professionals. Later on, we have consulted more than 1,000 different stakeholder representatives, including our investors community and identified our material issues, in other words, the themes that we will focus on. We also developed the actions and long-term ambitions to address these material issues for the whole group in agreement with SBU presidents and the CEOs of all our group companies. These actions, together with our long-term ambitions, made up our sustainability road map, which was launched in the first quarter of 2021. We also agreed on the governance model for the ESG initiatives and key performance indicators that will be monitored at the board level. When it comes to performance indicators, we aimed to increase the granularity of ESG performance. Therefore, we created new ESG-related KPIs, like the identification of SDG-linked revenues and also initiated an external issuance process for all key performance indicators representing our group performance. If you look at our latest sustainability report, it includes many new information on our SDG performance which many of them have been disclosed for the first time in Turkey. To wrap up, 2020 marks our increased ambition level, followed by a year in which we deep dive into our ESG performance and better understood where to make progress. All these developments enabled us a 2-notch increase in MSCI ESG rating, and we believe we will show more progress throughout implementing the whole road map. At this point, let me mention our sustainability road map with a bit more details. What you see in this slide is a summary of 80 actions aimed at transforming our entire group activities. We built our sustainability road map, focusing on 3 main pillars. The first one is acting on climate emergency. And under this pillar, we have the actions that will carry us to net zero emissions and net zero waste by, the latest, 2050. Towards achieving these targets, for sure, focusing on circular economy practices will be our priority as well. We know that achieving these targets require a significant transformation, and the transformation, that should not just happen for Sabanci, but in the entire economy. So we embrace the principle of leaving no one behind, especially for those who are more vulnerable and struggling to keep up with the transition. And accordingly, our second pillar refers to key community investment programs that go hand-in-hand with our main strategy and business activities. It also includes a strategic review of existing programs to make sure every penny that we spend is creating the maximum possible impact. And last but not the least, our third pillar called fostering sustainable business models is about, first, embedding responsible investment approach in our business; and second, on top of this, do no harm principles, developing innovative products, services and solutions in line with our ambitious target. So we ultimately aim to increase the share of SDG-linked revenues in our portfolio, similar to what many asset owners try to do, such as increasing the share of SDG-themed funds. In addition to these pillars, we believed in that digitalization, technology and innovation will lead accelerators to help us to reach our goals faster, and human capital and governance will be the foundations maintaining and further enhancing our performance. This slide is just to show you how we link our material themes and our road map. On the left-hand side, you see the 11 material themes that perfectly fits under the 7 building blocks of our road map that I just tried to explain. When identifying our material issues, we not only engage with the many stockholders but also analyze best and next practices and we also assessed the strategic impact of each issues on our business. And to be frank, the business case was the main driver behind the increasing of our ambition. And in this slide, I would like to show you the breakdown of our road map actions by type and timing and also to which SDGs they are contributing. More than 40% of the actions includes systems transformation such as: embedding ESG into our CEO and top management performance criteria; making a distinction between the products and services, and identifying which of them go beyond the no harm principle and contribute to SDGs; better management of ESG performance of our supply chain; or improving our sustainable finance framework. The rest includes increasing our disclosure and accountability; and launch of new frameworks, especially on issues like human rights, biodiversity, responsible investments and enhancing the monitoring of our performance and setting interim ESG targets. And I'm also happy to say that we already made an important progress in implementing such actions. And by the end of this year, we aim to reach a 40% completion rate. Until now, we try to explain the background of how we form and also the content of our sustainability strategy and road map. And here in this section, I would like to more elaborate on where we would like to reach at the end of this road map and how they ensure the ESG governance. Here in this slide, you see our sustainability targets in a one-page summary. We believe that the road map that I tried to explain in the previous section will serve our intention of pioneering sustainability and be among the best practices, first in Turkey and, in the midterm, in the regions that we operate. Being net zero emissions and zero waste, the latest by 2050, are the challenging but essentially part of our targets. This includes our Scope 1 and Scope 2 emissions. And our intention is to include Scope 3 to the extent that it is feasible and practically possible. It is a net zero target, so it includes reducing emissions on the ground to extent possible, and then using credible offset methods like CCS and nature-based solutions as well. We are aware that it will require almost cutting our emissions close to 50% by 2030s. And accordingly, our group companies started to define their own science-based targets. But before we launch the group-wide interim targets, we prefer to complete an assessment, especially on technological needs, availabilities and Scope 3 dimensions. The zero-waste goal is also challenging. But given our existing efforts on circular economy, we believe it is doable, and we will make every effort to reach this goal ahead of 2050, at least in some of our sectors. And on the other hand, we will continuously improve the SDG-linked products and services in terms of number and the share in our total net sales revenues. With our increased ambition, we reached a level that almost 44% of our R&D and innovation expenses are sustainability oriented. To increase the share of SDG-linked products and also to reduce our waste and emissions, we will increase this ratio to more than 70% in 4 years' time. With the idea of leaving no one behind, we will continue to support all segments of our society in an inclusive manner. We will assess the impact of our major community investment programs and stay above the meaningful threshold that we identified for the social return on our investments. In mid-pandemic, we also started maybe the most comprehensive adapting future of work study throughout our group, which I will a bit explain more in the later stages. And the last but not least, as Akbank announced before, we committed to provide sustainable finance amounting to TRY 200 million until 2030, for the first time in Turkey, among private commercial banks. Knowing the fact that reaching good results also requires the right governance structure, and therefore, we reviewed our ESG governance model as well. We believe that our ESG governance also includes many firsts in Turkey in terms of robustness. As part of our participative and total leader ownership approach, we established a sustainability leadership committee that includes all our SBU presidents. And on top of this, a Board-level Sustainability Committee has also been established which is formed and governed by the independent Board members of Sabanci Holding. Company bases sustainability organizations and ownership and formed thematic working groups with different participants from our different companies are other important parts of this governance model. One of the critical parts that we considered in the governance structure is also accountability and transparency. And with our latest sustainability report, we are the first conglomerate in Turkey which disclosed more than 30 KPIs by covering almost 100% of our group companies and ensured an external assurance at the group level. Also, as an indicator of our ambition and accountability, we have integrated ESG metrics to performance criteria of our CEO and the whole group top management, and we are pleased to be a leading example in this regard. In the previous slides, we have given you a snapshot of what we have done so far in terms of governance and how we guide our group companies on our long-term ambitions. Now I would like to give you some flavor on how our group has performed in 2020, which also forms the starting point for future progress. I will start with group-wide sustainability performance indicators and then give some sector-specific figures as well. At Sabanci Group, our Scope 1 and Scope 2 total emissions are approximately 21 million tons of CO2 equivalent, and the ratio to our combined net sales revenue amounted to 0.21 CO2 per million TL. Almost 87% of these emissions comes from Scope 1, and when we look at the distribution of the emissions by sectors, Building Materials and Energy Group consists of 56% or -- and 42% of the total emissions, respectively. Compared to 2019, our energy intensity in 2020 moved up due to the decrease in hydroelectric generation as a result of prevailing drought affecting our energy generation portfolio. So this is a perfect example of climate risks driving our investment decisions as we aim to grow in technologies like wind and solar as well. As you can see from our growth platforms, in the strategy, we will address the energy-intensive sectors through making the transition from gray to green in terms of generation mix and product portfolio in these industries. And on the other hand, as a part of our circular economy efforts, the rate of water brought back to the economy in 2020 has been reached to 19% level. While the rate of the waste recycled reached 87%. We believed these are many -- there are many cross sectoral opportunities in our group companies, and there are already examples on one company using the other's waste as fuel and raw material. I'm also very glad to see that 2 of our group companies have become the Turkey leaders in both CDP climate and water programs. And in terms of equality and diversity, we believe we are among the very few companies which have a high representation of women in senior positions. The ratio of women at our Board is 44%, while the ratio of women in management roles is 38%. For sure, this is not enough from the quality perspective, but still gives us a motivation, since according to the Eurostat, Turkey average of women in management ratio is only 22%, whereas this ratio is 37% in the European Union. Another key area that I would like to mention is the total number of people that we reached through our community investment programs. Only within 2020, we reached more than 46,000 people with our investment in communities. This is also an important part of leaving no one behind effort. As I mentioned earlier, decreasing the impact of our business on an environment is not the sole aim under fostering sustainable business models. We also aim to contribute -- transition to a sustainable economy with the products and services of our group companies. One of the important examples is Akbank, as it has provided financing worth TRY 16.4 billion to support transition to a sustainable economy. And having said that, standards on social taxonomy or transition activities are still vague and the existing standards may not always provide enough granularity nor address country-specific context. But we thought this shouldn't stop us, given the urgency of the SDGs and, therefore, we decided to create our own taxonomy for not only the products but also for R&D activities and even for CapEx and OpEx expenses. We follow up our products and services in 4 different categories in terms of their contribution to sustainable development. And the first one is mitigation, which covers products and services that provide benefits for the direct mitigation of environmental resource use and carbon emissions, such as renewable energy, generation or electric vehicles. And the second one is the transition, which refers to products and services that are resource-intensive or carbon-intensive in nature but are related to the transition to more sustainable technologies. This mostly includes building materials products that are significantly efficient in terms of alternative fuel or raw material usage compared to Turkey average. The third category, enablers, include the products and services that create a positive environmental impact on customer operations or serve as inputs to sustainable industries. Examples include offering e-charging network for customers. The last, but not least, in those that are creating social positive impact which, for example, includes products that increase safety aspects or services that are designed to increase the livelihood of vulnerable groups like elderly population. It is important to highlight that, in principle, we aim to increase the environmental and social negative impact of all our activities and processes, but the categories defined here go much beyond the minimum safeguards and significantly contribute to SDGs. Based on this taxonomy, we identified 828 nonbank products and services. A major part of the revenues were generated from mitigation and transition categories. If you look at the sectoral distribution of the revenue, our industrial and energy group have significant contributions. These figures that are externally measured are those we can so far identify. And moving forward, we will enhance our categorization, in line with local and global developments at this front. Since industrials, building materials, energy have significant impact on our performance, I will mention some of the key indicators in these sectors moving forward, and I will start with the building materials. As an integral part of our circular economy approach, the waste recovery and recycling rate has reached 100% in our building metals. Our alternative fuels usage in building materials is 2x more than the Turkey average. Moreover, alternative fuel consumption in our building materials has increased 2.5x in the last 4 years. And in this group, we have 36 transition products, making up 15% of their revenues by focusing on smart plant systems, data analytics, energy efficiency and increasing the use of waste as an alternative fuel and raw material source. Moving forward, diversifying the product portfolio in favor of low environmental impact alternatives, growing also in noncement adjacent segments, increasing the rate of waste usage in raw material and fuel are the building blocks of transforming building materials business. In our energy business, 100% of our current investment plans, worth 565 megawatts, are renewable energy. So the current 44% of the renewables in total installed capacity will exceed 50% threshold in the coming 4, 5 years' time. And in energy business, SDG-linked revenues are amounting to TRY 2.4 billion in 2020. We are also significantly contributing the electrification with network and infrastructure investments. When you look at our growth areas in energy, you will recognize that all of them are aligned with responding to SDGs, such as full focus on renewables, e-mobility, distributed energy generation with renewable technologies and digital customer solutions. Last but not the least, our industry industrials group generates 28% of their revenues from SDG-linked products while making up only 1% of our total Scope 1 and 2 emissions. On top of that, they managed to reduce the Scope 1 and 2 emissions by 14% in 2020, while they are intensely working on SDG-focused R&D and innovation. Two of the companies in industrials group have science-based targets already. And very recently, one of them has been the first company in Turkey to get an official SBTi approval on this target. They are also CDP Turkey climate and water leaders. With a particular focus on leveraging digital transformation and advanced material technologies such as sustainable chemicals and lightweight materials, they aim to further expand our SDG-linked revenues in this group. In the last section, we tried to give an insight on our current performance with selected sustainability indicators, mainly based on 2020 year and results. Moving forward, we will continue to improve our performance and disclose our metrics transparently. And in addition to all these developments on our sustainability performance, we have a lot of actions that we can explain in the following slides. However, due to the time limits and constraints, it's not possible to go through all the details, but I would like to briefly mention one major initiative called -- what we call Future of Work, which focuses on human factor and forms the basis of our success. Given the rapid pace and drastic scale of transformation, we see adapting the Future of Work among one of our key initiatives in reaching our sustainability ambitions. As we prepare for adapting to the Future of Work, which is one of the 5 strategic directions beside sustainability, we developed an extension action plan covering 1,500 items in cooperation with our external consultants. I can fairly say that Sabanci Holdings adopting the Future of Work project is one of the most comprehensive future of projects ever done in Turkey. In this project, we benchmarked our group companies against relevant global best practices in their respective industries to identify the gap to best practice. And by using this analysis, we created a road map to make them future of work pioneers in their respective sectors. The plan is being implemented under 7 main topics. Individual road maps are devised -- or I mean defined for each company under the titles of smart work, flexible and high-performance workforce, new talent and skill paradigm, the future leadership, purpose-driven organization and culture, physical and mental health and digital and agile organization. Once all actions are completed, Sabanci Group companies are expected to become among the global references in their industries in terms of adopting the Future of Work. On top of our sustainability efforts, as I mentioned before, the initiatives that we will take to transform our portfolio to reach our sustainable goals are important as well. And now I will hand over to Orhun for sharing the portfolio initiatives that we have.

Thank you, Hakan. Hello, again. Now obviously, as we stated, we're transforming our portfolio for future. In this journey, there are still things we're going to learn globally as we progress towards our aims, which we have already stated, so that we can have a more sustainable world in front of us. But in the short term, as Hakan was explaining, as we transform our core -- the core of our business, from waste recovery to energy recovery, from water usage to commercialization of sustainable products and services, we already are enjoying positive financial performance, that is already reflected in our delivery of our results, basically. And if we look ahead, going forward, as we explore areas for investments in new economy, from sustainable finance, as Akbank does to foster finance sustainable investments; from sustainable chemicals, as we capitalize on Kordsa's knowledge of material technologies, which we would like to pursue; to sustainable building materials, as our building materials unit look to expand beyond existing lines through precasts and insulation solutions that are eco-friendly; and of course, renewable energy, as we expand our generation capabilities as we invest moving forward, all of our portfolio investments are geared towards meeting tomorrow's demand. Now we also think this makes great business sense because, first, we would seek -- we would expect to see lower cost of debt and lower cost of capital. We've already enjoyed it and experienced it when last year Enerjisa Ãœretim has the largest sustainability-linked loan package that it has used. It's small, but coming in bigger steps as we move forward, because we know that there's a broader investment base increasing each and every year as the sustainability-related asset base have been growing with a CAGR of 40% since 2015, which is when the Paris Agreement has been signed. So we'll have a bigger audience to talk to as we move forward with our initiatives as we transform our portfolio. And of course, finally, this is a part of risk mitigation for us because we would like to make sure that we lower the ESG-related risks. There is already a climate change which we all feel, which poses such risks, but also as the consumers or customer demands change, or the regulatory approaches change, we want to ensure that we can mitigate them as much as possible from today so that we don't experience financial impact tomorrow with our portfolio. So without further ado, I will hand over back to Hakan for a wrap-up.

Orhun, thank you very much. As we come to the end of the presentation, I will kindly ask for your few more minutes to wrap up the key themes and the messages that we tried to cover in today's meeting. Firstly, as Orhun explained, sustainability makes perfect business sense for us and is, therefore, at the heart of our strategy with full commitment of our management. And secondly, our long-term ambitions are quite challenging given the nature of being a conglomerate. But we will turn this challenge into an opportunity, taking the advantage of our ecosystem synergy. As third, although we have done a lot on our way to net zero emissions and zero waste, we know it's not enough. And we are allocating the right resources to significantly increase our efforts. Fourth, we know it will take time for the market economy and the country to advance on these issues. But we will not prefer to cover up behind these and instead try our best for developing new solutions or creating our own standards, such as the case in product taxonomy, to move and hopefully lead the way for others as well. And lastly, accountability and transparency will continue to be among our top priorities moving forward. Thank you for listening to the presentation and sharing your available time with us today. And so I'm leaving the word to Kerem.

Right. Let's continue with Q&A. [Operator Instructions] We have one question from Sashank Lanka from Bank of America, Merrill Lynch. You have mentioned you plan to lower emissions by 50% by 2030, which seems very significant. What is the base year for this? And can you also give us where you expect to be by 2025 in terms of emission reductions? Do these emissions refer to Scope 1 and Scope 2 only?

Okay. Thank you very much for the question. First, as I tried to explain during the presentation, I said that even the -- we try to the net zero emissions, the latest by 2050. And even we know that considering the conglomerate structure, it's also a challenging target, but I also tried to say that, I mean, by 2030, that also will lead us to reach to maybe 50% levels at 2030. And this is a highly ambitious target. But as I said, it consists of Scope 1- and 2-related emission reductions, as I also tried to explain during the presentation, but we would also like to cover this Scope 3, and analyzing the Scope 3 in terms of availability and where it is possible to consider and to take Scope 3 emission reductions within our plans and actions as well. And for 2025, as I try -- also said, we are currently making analysis and also different search and consultancy studies on that. And so before sharing a midterm or interim targets like 2025, we will prefer to complete those analyses and studies. And then in the next sections and in the next ESG days also, we will be presenting the midterm targets, including 2025 as well.

Maybe to complement what you have just told, we have started the project, a large project, group-wide project, to identify the technology gaps. And also, we are conducting life cycle analysis and Scope 3 emissions analysis, especially for sectors like financial institutions. And as you know, the standards are -- there are quite vague. So that's why it would take, we expect, 1 or 1.5 years to complete this whole study and set the interim targets for the group-wide, let's say, figures. Having said that, as Hakan mentioned before, our companies already started to set some science-based targets, and you can see their interim targets from their, let's say, disclosures. So I just wanted to add that. Thank you.

Thank you.

We have another question from [ Hanzade Kilickiran ]. What are the target nonfinancial KPIs for the top management remuneration? Do you plan to increase its share to a more meaningful ratio?

[ Han ], thank you for the question. And to tell the truth, the KPIs that I tried to explain during the presentation related with our sustainability road map, are mainly most of them are the drivers and the performance indicators for all the top management and for us. As I also tried to explain, we are trying to take sustainability issue with an ownership -- total ownership, total leadership. So I can say that the road map and the KPIs related with that, even the nonfinancial ones, are pretty much taking part in our top management performance criteria and scorecards.

And also maybe again to complement it, diversity and emissions are among the key ESG KPIs in the performance targets.

And I think there was a question related with if we consider to increase the portion and the ratio. To tell the truth, currently, we do not have a plan like that. But for sure, in time, as we review the performance and the results that we achieved, for sure, I mean these systems -- these performance systems are always changeable. And for sure, we will be looking ahead, and we will change where the necessary, the portions as well. But in that case, as I tried to mention, we will always share this transparently with you, with the audience as well.

We don't have any further questions at the moment. Let's wait a couple of more minutes. Okay. We have another question from [indiscernible]. Could you please give us details about possible burden that Europe's Green deal might bring to the group companies in the coming years? And what actions are you planning to take against that?

Let me hand over this question to Derya. Derya, maybe would you like to add a bit more about -- because I tried to explain the Green Deal and the effects, especially on our businesses, mainly in the cement, but could you please elaborate a bit more on that?

Yes, of course. We have been very closely following the developments there on the EU Green Deal side, and among the major that we see is the Carbon Border Adjustment Mechanism. And on top of that, I think there are some forthcoming regulations on due diligence. So due diligence on supply chains and even on customers. So on these 2 fronts, I can fairly say that we have made some scenario analysis for our emission-intensive sectors. One of them is cement, as you can guess. And in this analysis, we have identified that the emission intensity rate of the sector compared to their European peers, top 10 performer peers, in terms of efficiency, is quite good. So when you look at the gap between us and the European peers, it's not very much. So we believe we will not be impacted from these, let's say, regulations in the short term. But moving forward, since we know the standards and also the intensity rates will be further -- will be stricter. We will also have to move fast and work on our emission intensities. On the due diligence front, we are working on a group-wide, let's say, policy, which will include a further deep dive on our value chain in terms of ESG standards, and we believe this will address the current developments in the EU.

Yes. And maybe just to add on. As Derya mentioned, maybe when we look at the Green Deal and also the Carbon Border Adjustment part, it looks like that the building materials or the cement industry, maybe in our portfolio, it looks like the one will be affecting much. But even when we look at it, as Derya mentioned, we see the Green Deal and even the Carbon Border Adjustment, not as a risk, but as an opportunity for us to develop and to increase our ambitions and also processes and results.

Okay. We have a follow-up question from [ Hanzade Kilickiran ]. Do you have a separate biodiversity policy on a company or holding level? If you do not, do you plan to publish one in the future?

Yes. Thank you very much for the question. Unfortunately, currently, we don't have a biodiversity policy in place. But -- and as I tried to mention in our road map, this is -- I mean the policies and the missing policies and the actions are also an integral part of our road map. And biodiversity, on the group-wide level is what I'm talking about, because on a company basis, we do have those kind of policies. But the group-wide level biodiversity policy is something that we are currently working on.

And on top of that, it is good to mention that our group companies are following the strictest standards like EBRD or IFC criteria and which also includes criteria on biodiversity. And also, it is important to highlight that sustainability is part of our [ ERM ]. So [ ERM ], we also consider the impact on, let's say, environment or society of a major transactions. So to that end, we have such biodiversity -- or in general environmental criteria currently. But moving forward, as Hakan said, we will develop a more comprehensive one and we will make sure everyone is aligned as group-wide performance moving forward.

Okay. We have no more questions outstanding. We have a follow-up question from [indiscernible]. What kind of corporate actions do you potential take in the short to medium term when transforming your portfolio in line with your sustainable targets?

Orhun, would you like...

Yes, thank you, Hakan. Thank you [indiscernible]. Look, obviously, I'm sure you must have been hearing from our individual companies as well about their plans going forward. I could say, for instance, if you look at our energy business, obviously, in the next phase of our investments, we seek to have renewable energy investments that would be included to our portfolio, basically, to make sure that we progress towards our 2050 goals. Or in general, as you may heard, our investment plans in our portfolio going forward almost exclusively focuses on new economy and sustainable investments, from sustainable chemical investments, to sustainable finance, to sustainable energy, electrification, mobility. All of these portfolio undertakings especially would be geared towards sustainable to deliver new economy-driven investment decisions. Obviously, these are all our long-term corporate plans as we look ahead. And obviously, we seek to execute them, not only to ensure that we deliver on our sustainability goals, but also deliver on our financial performance.

Let's give a couple of more minutes for any final questions that they may have. All right. We have no more questions. Thanks so much, everyone, for joining and sparing the time today. Good afternoon.