As part of our way of doing business based on a circular economy and our mission to use the natural resources entrusted to us in the most efficient way possible, we are combating global climate change by producing energy from renewable resources.

Agriculture and animal husbandry, which account for a large portion of greenhouse gas emissions resulting from human activities, are also included among the industries which will be significantly affected by global climate change (drought and extreme precipitation events). A variety of actions are being taken worldwide and nationwide to limit the rise in temperature due to global warming to a maximum of 1.5°C. As Sütaş, we strive to contribute to these goals. We focus on activities aimed at reducing greenhouse gases caused by our operations, producing renewable energy from our waste and increasing energy efficiency.

We process and convert animal manure, which releases methane and nitrogen into the atmosphere under natural conditions, and all other organic waste into renewable energy at our biogas facilities. At our biogas facilities, which utilize cogeneration technology, we generate electricity, hot water and steam by utilizing the waste from our farms as well as all organic waste generated during our production processes.

We supply the electricity generated to the national power grid. We use the hot water and steam at our milk production factories. In addition, we produce organic and organomineral fertilizers for use in plant production from the by-products derived from the processes at our biogas facilities. This enables us prevent methane gas emissions - a significant source of greenhouse gases – from entering into the atmosphere due to animal manure and minimization of waste in an environment-friendly manner.

By investing a total of USD 42.5 million in our energy operations which began in 2013, we have increased our electricity generation capacity to 17 MWh and our thermal energy capacity to 16 MWt at our 3 integrated facilities. In 2017, we utilized 811,240 tons of solid waste to produce 82,865 MWh of electricity and 55,375 MWh of heat energy (49,797 tons of steam - 16,854 MWh hot water).

In 2016, we opened the Organomineral Fertilizer Production Facility integrated with our Biogas Facilities in Karacabey. We produced 1,213 tons of organomineral fertilizer in 2017.

In 2017, we met 66% of the total electricity demand of Sütaş Group with the electricity produced at our biogas facilities. This accounts for 89% of the electricity demand and 20% of the thermal energy demand of our milk factories.

When calculating our greenhouse gas emissions, we consider the direct emissions
caused by the Group’s production operations and vehicles owned
(Scope 1) as well as the indirect emissions associated with the
consumption of the electricity
purchased (Scope 2). For our
2017 calculation, we used the
IPCC5 Methodology, a more current methodology, instead of the one previously used in the
report. We also revised the
numbers for previous years by
re-calculating them according to
the new methodology.

While Sütaş Group achieved a growth of 47% in 2017 compared to 2015, its greenhouse gas emissions increased by only 13%. While our greenhouse gas emissions due to all operations were 136 thousand tons, we reduced greenhouse gas emissions by 255 thousand tons thanks to our renewable energy investments.

In 2017, our greenhouse gas emissions per ton of raw milk processed increased compared to 2016. This increase was caused by the fact that our Tire Integrated Facilities had not started operating at full capacity.

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The certification process for our Karacabey and Tire Integrated Facilities according to the Gold Standard program is in progress.