TÜSİAD Completes Third Session of European Green Deal Talks Series

TÜSİAD European Green Deal Dialogue Series Third Session: "Sustainability and Value Chain" Theme, Featuring Levent Çakıroğlu, Board Member and CEO of Koç Holding The meeting, moderated by Fatih Kemal Ebiçlioğlu, Board Member of TÜSİAD and Chair of the Investment Climate Round Table, addressed the impacts of the European Green Deal on different sectors and value chains under the title "Sustainability and Value Chain." Levent Çakıroğlu: "As a multinational organization, we operate in many countries around the world, including EU member states. In this respect, we are trying to contribute with a structure that can see needs both within and outside the European Union." Sharing his views within the scope of the European Green Deal, Levent Çakıroğlu stated, "At the time when the effects of the Covid crisis were felt most deeply, EU authorities strongly expressed their continued determination regarding the Green Deal. I interpret this as follows: The European Union has demonstrated its commitment to the issue of climate change, which carries the risk of creating deep humanitarian crises such as those we are experiencing now, in the coming period.

As Koç Group, we export more than 50 percent of our exports to the European Union. We have manufacturing, sales, marketing and finance companies in EU member countries. Following an invitation we received at the Davos Summit held at the beginning of 2020, we joined the CEO Action Group, which will lead in determining concrete steps to be taken by the private sector within the Green Deal agenda," he said.

Levent Çakıroğlu continued: "Within the platform created under the European Green Deal, companies are working to create cooperation among themselves in terms of developing technologies for reducing and eliminating carbon emissions in the coming period by sector. Two issues were important for us in terms of representing our country: First, we found a very important approach that would also include countries outside the European Union, because the EU has trade partnerships with many regions of the world. We believe it is important that, within the framework of mechanisms to be determined from funds that will promote green transformation, countries that are not EU members should also benefit from an inclusive approach. I particularly think there is a need to provide resources through these funds to developing countries' capacity for innovation and technology development. Second, we assess that distinguishing companies with high ESG performance in non-EU countries would be correct. We stated that the development of a transparent ESG reporting standard is essential. Both of our views were adopted by group members and included in the statement published in September. As Koç Holding, while representing our country on one hand, on the other hand we operate as a multinational organization in many countries around the world, including EU member states. In this respect, we are trying to contribute with a structure that can see needs both within and outside the European Union." Levent Çakıroğlu continued: "Technology and innovation are one of the most important tools in reducing carbon emissions. According to the European Energy Agency, renewable energy has the greatest potential in reducing carbon emissions. It is followed by energy efficiency. Technological developments and innovation in energy efficiency are also very critical. Radical advances in renewable energy and hydrogen will again occur through innovation and technology. I think as follows: Some of the funding mechanisms could be allocated to supporting innovation, purchasing inventions and patents and making them available for free use in needed countries and companies. While it is important to increase efficiency on one hand, on the other hand I am aware that different countries and companies conducting research and making investments in the same areas carries potential inefficiency, which is why I am making such a proposal." Levent Çakıroğlu: "As Koç Group, we committed to reaching carbon neutrality by 2050. As a group, we are also determining our roadmap for the coming period." Continuing his remarks by saying "Looking from a broader perspective, the business world has the responsibility to be a solution partner not only in the climate crisis but in solving the world's most important issues. Large problems can only be solved through cooperation," Levent Çakıroğlu stated, "As Koç Group, we committed to reaching carbon neutrality by 2050. As a group, we are also determining our roadmap for the coming period."

Levent Çakıroğlu continued: "We are faced with the reality of the climate crisis. All scientific data and what we have experienced show us this. There is no more time to delay action on this issue. Those who have not acted need to act. We are in the age of cooperation. While we continue our activities in technology and innovation, I see cooperation with universities, start-ups, public institutions and civil society organizations as very important. On the other hand, countries, investors, customers and employees are determined. They expect high performance from companies in environmental, social and corporate governance areas. Covid-19 affected supply chain architecture. The Green Deal also has the potential to affect it in terms of carbon taxes and other regulations. In this context, considering our country's geographical proximity to the EU market and our existing trade partnership; if we take the right steps at the right time, I see an opportunity window ahead for our country and companies in our country in this new world order."

TÜSİAD discusses many different dimensions of the Green Deal—such as circular economy, energy, foreign trade, digitalization and finance—with top executives of the private sector in its "Green Deal Dialogues" in order to draw attention to the risks and opportunities created by the Green Deal and to raise awareness on this issue in the private sector and public opinion. You can access the previous sessions of TÜSİAD European Green Deal Dialogues using the links below:

TÜSİAD European Green Deal Dialogues I: "Green Finance Tools" (07.12.2020)

Guest: Murat Özyeğin – Board Member of TÜSİAD, Chair of Parliament and Public Institutions Relations and Energy and Environment Round Table / Chairman of Board and Executive Committee of FİBA Group

Moderator: Fatih Kemal Ebiçlioğlu - Board Member of TÜSİAD and Chair of Investment Climate Round Table

Link: https://www.youtube.com/watch?v=SobNzrZ5D_I

TÜSİAD European Green Deal Dialogues II: "Industrial Transformation" (11.01.2021)

Guest: Simone Kaslowski - Chair of Board of TÜSİAD and CEO of Organik Kimya

Moderator: Fatih Kemal Ebiçlioğlu - Board Member of TÜSİAD and Chair of Investment Climate Round Table

Link: https://www.youtube.com/watch?v=bATFjbK1xdM