Yildiz Holding (Godiva Chocolatier, Pladis, Ulker)

No leading practices were identified for the company in the governance and strategy measurement area.

No leading practices were identified for the company in the environment measurement area.

No leading practices were identified for the company in the nutrition measurement area.

No leading practices were identified for the company in the social inclusion measurement area.

Sustainable development strategy
While the company has disclosed its sustainability approach around three pillars “People, Planet and Product”, and its objectives covering environment and nutrition dimensions, it has an opportunity to disclose a sustainable development strategy and how it identifies and prioritises the topics where it has the most impact.

Governance and accountability for sustainable development
Yildiz Holding discloses that it has a sustainability platform which is responsible for overseeing and implementing sustainability topics. The company confirms that overall responsibility for the implementation of the sustainability strategy lies with the highest governance body, being the Yildiz Holding Board of Directors and chairperson and under the leadership of the CEO. However, no information on the company’s remuneration policy in relation to its sustainability strategy were found in the public domain.

Stakeholder engagement
Yildiz Holding does not disclose stakeholder engagement activities, including how it selects the stakeholders, nor an overview of the topics discussed or their outcomes.

Scope 1 and 2 greenhouse gas emissions
Yildiz Holding reports CO2 emissions from 2017 to 2019. However, the company reports an increasing trend in emissions. Moreover, in its subsidiaries Ulker has set a target to reduce carbon emissions by 40% per unit of production. However, its current performance is behind the target, though other subsidiaries show quantitative reductions for segments of its scope 1 and 2 emissions. Furthermore, the company could disclose a group-wide reduction target and report the progress against it.

Protection of terrestrial natural ecosystems
While the company has commitments to deforestation and conversion-free (DCF) supply chains through policies or certification programmes for its high risk commodities in palm oil and cocoa, it has an opportunity to strengthen its commitment by setting targets for achieving DCF supply chains for its relevant high-risk commodities or by disclosing the proportion of its relevant high-risk commodities which are currently DCF.

Soil health and agrobiodiversity
Yildiz Holding’s subsidiary, Kerevitas shares its activities in increasing soil fertility through adding Rhizobia to the soil. The company discloses that it provides consultancy to all farmers it purchases from to improve their knowledge on agricultural production, including soil structure improvement. However, no further policy or quantitative evidence were found in the public domain, presenting an opportunity for the company for future reporting.

Availability of healthy foods
Yildiz Holding provides disclosure that its subsidiary, Ülker Bisküvi strives to reduce the amount of saturated fat, salt and sugar used in all its product categories. The company discloses that it has reduced 180 tons of fat, 109 tons of sugar and 16.3 tons of salt in all product categories over the past year. The company reports that approximately 9% of Ülker Bisküvi’s turnover consists of products with reduced sugar, fat and salt. However, there lacks group-wide policy and overall targets to improve healthiness of the products, presenting an opportunity for the company going forward.

Responsible marketing
While Yildiz Holding has a commitment to market its products responsibly, particularly to children, it has an opportunity to disclose qualitative or quantitative evidence reflecting this commitment.

Food safety
Yildiz Holding discloses its factories with 22000 Food Safety Management System and FSSC 22000 Food Safety System certificates, and its subsidiary, Kerevitaş, produces 100% of its products in accordance with international food safety and quality management systems. The company also reports that its subsidiary ŞOK Marketler requires suppliers to have obtained at least one certificate, such as BRC International Food Safety Standard and FSSC 22000 Food Safety System, and conducts inspections accordingly. However, no evidence shows that the company has 100% of its own operations certified to GFSI-recognised food safety scheme or other widely-recognised certification.

Child labour
While Yildiz Holding commits to prohibiting child labour in its own operations and requires its suppliers to adhere to the same standard, it has an opportunity to disclose a policy requiring its suppliers to have an age-verification system in place.

Living wage
Yildiz Holding does not disclose that it pays its workers a living wage or requires its suppliers to do the same. Neither has it set targets to do so in the future.

Farmer and fisher productivity and resilience
Yildiz Holding shares some evidences of activities supporting farmers and small-scale producers to improve their productivity. For example its subsidiary Adapazarı Şeker prepared the Farmer’s Handbook for the farming of sugar beet, which is the main raw material of its operations, under the most appropriate conditions that protect the soil, and so as to inform farmers. However, the company does not disclose clear commitment on support the resilience, productivity or access to markets for farmers and small-scale producers. The company could further improve by measuring and disclosing the outcomes and impact of a proportion of its support activities.

Yildiz Holding commits to respect human rights, and provide grievance mechanisms for workers. However, there remains an opportunity for Yildiz Holding to improve its commitment or policy regarding respecting human rights of workers and providing grievance mechanisms for third parties. In addition, Yildiz Holding provides no evidence of assessing, integrating and acting on human rights risk and impacts.

Yildiz Holding addresses ensuring health and safety and workforce diversity disclosure. However, the company could improve its disclosure of these two topics. In addition, Yildiz Holding does not provide sufficient commitment or policies on paying a living wage, respecting working hours, collective bargaining and supporting gender equality and women’s empowerment.

Yildiz Holding is committed to protecting personal data and anti-bribery and anti- corruption. However, there remains an opportunity for the company to strengthen its commitments in these two topics . Moreover, the company discloses little information in responsible lobbying and political engagement and no evidence of paying responsible tax were found in the public domain.