In 2021, a Board Level Sustainability Committee was established, which is formed and governed by independent Board Members of Sabancı Holding. In 2021, Sustainability Board Committee held its first meeting following its establishment and continued to convene in 2022. Sustainability Board Committee comprises of the independent board members in order to help the Board of Directors fulfil its duties and responsibilities regarding environmental and social issues in a healthy manner. Sustainability Board Committee comprises of a Rapporteur and maximum three members including Chair who is appointed by Sabancı Holding Board of Directors. The Chair of the Committee is selected among the independent Board Members and appointed by Sabancı Holding Board of Directors. The Committee meets in ordinary session at least twice a year. The meeting minutes are submitted to Sabancı Holding Board of Directors. The Committee discusses issues related to Sustainability Governance Structure of the Holding as well as local and global developments related the climate emergency such as IPCC Reports, SBTi targets, GHG performance, CBAM progress and EU directives on environment. Sustainability Board Committee approves the interim targets and KPIs of related business units in line with sustainability roadmap. For example, finalizing the Net-Zero road map is one of the KPIs that has been determined for Group companies. In 2022, The Committee was also responsible for monitoring the progress made towards the Net-Zero roadmap of Group Companies. [...] Scheduled – all meetings Reviewing and guiding annual budgets Overseeing major capital expenditures Overseeing acquisitions, mergers, and divestitures Reviewing innovation/R&D priorities Overseeing and guiding employee incentives Reviewing and guiding strategy Overseeing and guiding the development of a transition plan Monitoring the implementation of a transition plan Overseeing and guiding scenario analysis Overseeing the setting of corporate targets Monitoring progress towards corporate targets Overseeing and guiding public policy engagement Reviewing and guiding the risk management process Climate-related risks and opportunities to our own operations Climate-related risks and opportunities to our investment activities The impact of our own operations on the climate The impact of our investing activities on the climate Climate emergency issues constitute an important part of Sabancı Holding's sustainability efforts, given its Group-wide long- term goal of being net zero emissions and zero waste by 2050 at the latest. Such topics are brought to the agenda of BoD members through a variety of channels including the Board-level Sustainability Committee. Also, risk study results including climate change are evaluated periodically by the Holding BoD, Early Detection Risk Committee and Risk Coordination Committee. Sustainability-risks, including those that are related to climate, are among the critical risks that are assessed and monitored at the EDRC level. An example to such risks can be physical and transitional risks related to the climate emergency and their impact on our Group activities. Transition to a low carbon economy provides many opportunities for Group companies. These are assessed at Sustainable Business Models Thematic Task Force. In 2022, the Board monitored the Group companies' strategy and progress for Net-Zero strategy and has overseen the determination of the related KPIs for investee companies, i.e. Group companies.