Zorlu Energy Net Zero Roadmap

Established in 1993, Zorlu Enerji is an energy company that aims to operate on different fields of energy sector providing a global scale integrated service. Zorlu Enerji, which is a subsidiary of Zorlu Enerji companies and the only publicly open company operates on various fields of the sector with an integrated corporate combination including electricity and steam generation and their retail

Since 1993, Zorlu Energy has provided integrated services in electricity generation, distribution, and trade internationally. With a portfolio rooted in renewable energy, we view sustainability as both a business model and a fundamental responsibility to build a restorative and inclusive future. As a concrete manifestation of this vision since July 1, 2023, we at Zorlu Energy have significantly advanced our Net Zero transformation by developing and implementing a science-based, Paris Agreement-aligned transition roadmap consistent with a 1.5°C pathway. This roadmap represents a strategic shift in how we plan, govern, finance, and operationalize decarbonization across our entire value chain.

As a first step, we conducted a comprehensive assessment of our Scope 1, 2, and 3 greenhouse gas emissions and identified our most material emission sources. Based on this analysis, we designed a detailed decarbonization strategy outlining how and when emissions would be reduced. These short- and long-term targets were formalized in line with climate science and officially validated by the Science Based Targets initiative (SBTi), demonstrating our commitment to measurable and credible climate action.

A cornerstone of our roadmap is the development of innovative, high-impact projects targeting our largest emission sources. One of the most pioneering initiatives is the GECO (Geothermal Emission Control) Project, implemented at our Kızıldere Geothermal Power Plant-the only site from Türkiye included in this project. Through carbon capture and reinjection of non-condensable gases, we prevented approximately 1,000 tons of CO-equivalent emissions from being released into the atmosphere during the pilot phase. In parallel, the project supports reservoir pressure management and enhances production efficiency, positioning geothermal energy as an even cleaner and more sustainable baseload resource. Feasibility studies for full-scale implementation are currently ongoing.

In addition to technological innovation, we strategically transformed our asset portfolio to reduce emissions. By exiting thermal operations, including the termination of investments in Israel, we achieved a material reduction in Scope 3.15 investment-related emissions. We also advanced low-carbon procurement practices such as green cement sourcing, initiated the electrification of our vehicle fleet, and continued energy efficiency projects across our operations under the ISO 50001 Energy Management System, targeting a minimum 10% annual reduction in energy consumption.

Recognizing that Net Zero cannot be achieved through our own operations alone, we launched a second phase focused on value chain decarbonization. We embedded environmental criteria into supplier selection processes, optimized logistics by prioritizing lower-carbon transport modes, expanded circular waste management practices, and developed solutions to reduce the climate impact of SF gas in grid operations. We further reduced indirect emissions by increasing renewable electricity use, supported by YEK-G and I-REC certification, and by contributing to regional grid decarbonization through renewable investments and infrastructure improvements. We also integrated our climate strategy into financial decision-making. In 2024-2025, we issued Türkiye's first Sustainability-Linked Bond, reaching a total size of USD 1.1 billion. The bond is directly linked to SBTi-aligned KPIs, including absolute Scope 3 emission reductions, and was internationally recognized with "Corporate Bond of the Year" and "Deal of the Year - Türkiye" awards. This transaction demonstrates how we translate climate ambition into financial accountability and scalable impact.

Through science-based targets, sector-leading technologies, value chain engagement, strong governance, and innovative sustainable finance, we at Zorlu Energy have established a transparent, credible, and scalable Net Zero Roadmap, positioning ourselves as a leading force in the global energy transition.