Sustainability Consultancy

Through our synergetic collaboration with Escarus TSKB Sustainability Consultancy (Escarus Sustainability Consulting ), our potent subsidiary in the sustainability business line, we integrate internationally-accepted sustainability practices into the Turkish business world.

Strategic Sustainability

Strategy Development

Every organization has its own specific requirements, expectations or objectives encouraging them to take action on sustainability. Such parameters are vital in designing the sustainability strategy.

Strategic management is a management approach that enables companies to develop the right strategies to achieve their objectives, effectively implement those strategies, evaluate the results and measure to what extent the objectives have been met in today’s increasingly volatile business environment.

As for sustainability strategy, it is the road map that sets out what resources a company/organization shall use and how it shall use them, what administrative and operational steps it shall take, and how it shall align current operations and business processes with that policy.

When developing a sustainability strategy, Escarus identifies the strengths and weaknesses of companies/organizations it works with through gap analysis, sets out the measures that will eliminate the gap between the current situation and the targeted situation and focuses implementing these measures. Using various methods including value chain analysis, competitive analysis, stakeholder analysis, market analysis and sectoral analysis depending on the nature of work and the scope of expectations, Escarus offers unique solutions for each individual sector and company/organization in its strategy development process.

Stakeholder Analysis and Prioritization

Stakeholder analysis results are among some of the most important data that has to be taken into account when determining an organization’s sustainability strategy. Analytical studies that identify the sustainability priorities and perceptions of organizations before their stakeholders are part of the stakeholder analysis.

Escarus offers a qualitative perspective as well as quantitative approaches in its stakeholder analysis projects. Execution of stakeholder analysis projects is divided into two stages, namely qualitative and quantitative research. A stakeholder experience story that is closest to the true story is achieved using both methodologies. The same conceptual framework is used in both in-depth interview and survey stages so that the conducted analysis has an integrity. Thus, the qualitative and quantitative stages of a research are discussed within a single framework feeding one another.

Using the online survey method in quantitative research stage of its stakeholder analysis, Escarus measures the perceptions and sustainability priorities of the organization through the questions it raises. As for the qualitative stage of the research, it discloses the perceptions and attitudes through the in-depth interviews conducted by the target audience in their natural business environment.

Sustainability Management Systems / Environmental and Social Management Systems

SBecause sustainability is a concept that could affect diverse departments and disciplines, it can often be difficult to own and effectively manage the concept within the organization. The Sustainability Management System (SMS) and the Environmental and Social Management System (ESMS) Projects designed specifically for organizations by Escarus aim to regulate sustainability, environmental and social management as a business model for and integrate it into all processes of the organization.

Since 2011, Escarus has offered SMS and ESMS infrastructure implementation services to many national and international organizations. The main purpose of such projects has been to track sustainability performance and make sure environmental, social/reputational risks are systematically managed. With the Sustainability/Environmental and Social Management System, the aim is to relate the independent "economic-environmental-social-managerial" activities of organizations directly with corporate strategy and business results, internalize the practice within the framework of the corporate culture and create a strategic sustainability roadmap.

At the current state of things, the systems dubbed the Sustainability Management Systems/Environmental and Social Management Systems have transformed into integrated systems including various actions such as the measurement of the environmental impact, waste management, carbon emissions management, corporate social responsibility projects, working conditions, training, stakeholder communication and sustainability reporting infrastructure as well as corporate governance structure and policy/commitment development.

Escarus’s SMS/ESMS project approach is a structure that is built on basic approaches such as different sustainability-themed index methodologies, ISO 14001, ISO 14064 and Sustainable Development Goals (SDGs). The basic contents of an effective management system should be designed in accordance with the dynamics, internal functioning and sensitivities of the organization and tailored to the organization’s needs. For this reason, the infrastructure implemented by Escarus is designed in line with the expectations of the client and so as to meet the expectations of the stakeholders with whom they cooperate/plan to cooperate.

While the designed systems are finalized in line with the opinions of the organization, Escarus also makes sure that the practice is owned within the organization and the capacity is built thanks to organization-specific trainings and workshops. However, in the optional remote support process, Escarus offers assistance towards the internalization of the system within the organization.

Sustainable Finance

Products and services that integrate environmental, social and governance (ESG) related factors into their business and investment decisions form the basis of sustainable finance.

An understanding where new investments and financing instruments add positive value to the nature, society and the human beings is capturing the interests of increasingly more investors. Sustainable financial products also create an alternative source of funding for environmental and social development investments. Accurate planning of sustainable financing mechanisms and instruments is of strategic importance at this point.

Escarus offers strategic consulting services to financial institutions and companies in the field of sustainable finance. In line with the needs and capacities of organizations, Escarus provides the following services:

- Sustainable Finance Portfolio Analysis

- Green/Social/Sustainable Bonds Consulting (Development of themed bonds including SDGs, gender equality, water, etc.)

- Second Party Opinion

- Impact Reporting

- Sustainable Financial Products and Services Design, and

- Climate Finance Instruments Development

Operational Sustainability

Technical, Environmental and Social Impact Assessment and Monitoring

Technical, environmental and social risks are often hardly/less visible. Less visible or invisible risks occur at different stages of an investment and often lead to serious problems in terms of managing it.

Escarus conducts a "Current Situation Assessment" for various projects considering many factors such as the planned sizes at the feasibility stage and potential risks, the investor's experience and competence, the expectations of the host country where the investment will be made, and the suitability of the value chain of the investment.

This is a rather significant assessment study for lenders or investors of the project. Because any technical, environmental and social risks that may occur could result in the project failing to provide the expected production results and/or production being suspended or the investor suffering serious financial and/or reputational damage. Any discrepancy that can occur in any of the processes can lead to reputational risks, collateral risks and/or financial risks that will delay loan repayment for lenders and investors.

In order to meet such needs, Escarus carries out technical, environmental and social due diligence and monitoring studies at facilities under construction or operation through its experience in the industry and specialized staff. The said studies can be prepared based on demand and need in the light of both the criteria of International Financial Institutions such as the Equator Principles, IFC Performance Standards, the European Investment Bank (EIB) Environmental Standards, the European Bank for Reconstruction and Development (EBRD) Performance Criteria and local regulations.

Operational Efficiency

Energy Efficiency

One of the most effective tools for companies to increase their profitability and ensure their financial sustainability is energy efficiency. Energy efficiency plays a leading role, especially in today's manufacturing industry, as it supports increased competitiveness and reduced greenhouse gas emissions. Although it varies from one sector to another and basically depends on the energy intensity of the processes, there is always an energy saving opportunity waiting to be launched in all facilities. The magnitude of this dynamic potential can only be understood by implementing a sound and proper energy management system.

It is difficult to calculate the financial benefits of certain energy efficiency measures (reinforced occupational health and safety, reduction of the number of work-related accidents, better health and working conditions, etc.). Nevertheless, one can measure the monetary value of quality improvement, reduced operating and maintenance costs, increased labor productivity, reduced water use, minimization of environmental impacts, etc. This phenomenon reveals that energy efficiency needs to be addressed from a holistic perspective along with other issues such as financial sustainability, resource efficiency and environmental risks.

As a company conducting its activities in the light of sustainability principles, Escarus offers the services for energy efficiency to reflect the said integrated approach. Escarus’ reliable competence and verified performance in financial analysis is enriched by the strong sustainability infrastructure. Escarus takes advantage of TSKB’s vast experience in assessing and financing energy efficiency projects as Turkey's first development bank, but also further reinforces its knowledge with sustainability-related projects and researches.

Resource Efficiency

Escarus offers solutions that allow its clients to manage their resources and operations more efficiently and reduce their costs in different areas. Through its holistic approach in the area of resource efficiency, it develops productivity-enhancing solutions that will reduce material and energy needs, strengthen recycling and reduce waste.

Assessing all operations of its clients from end-to-end for their long-term success and performance, Escarus contributes to the identification of risks within the context of resource efficiency, development of related strategies and systematic management of resources.

Bringing together the approaches developed in different platforms on resource efficiency and national and international good practices in a melting pot, Escarus offers the most accurate solutions that are fitted to the needs of its clients in their respective industries and that support increased efficiency.

Research, Reporting and Training

Non-Financial Reporting

After the creation of corporate sustainability strategy and integration of the sustainability structure and phenomenon with management and routine business processes, the step necessary to ensure the healthy functioning of this formation is monitoring and reporting. Performed as part of the process, periodic reporting both ensures the transfer of the flow of information and know-how within the organization and supports healthy communication with all stakeholders of the organization.

Companies, in order to present environmental and social impacts to their stakeholders, publish the non-financial reports that can be named as Sustainability Reports or Corporate Social Responsibility Reports in addition to publishing their Annual and Financial Reports. In order for non-financial reporting to be efficient, a reporting methodology is needed that must be developed specifically for each organization. GRI Standards, IIRC Framework (International Integrated Reporting Council Framework), reporting standards and guidelines such as the TCFD are used in the international arena. Having specialized in all such methodologies, Escarus provides both preparatory and reporting supports for non-financial reporting practices of organizations.

Identifying the top priority areas for the Organization: Unlike financial reporting, in order to efficiently make non-financial reporting, which is not subject to legal requirements and standards, it is important for every company to report within its top priority areas. When identifying these top priority areas, organizations should evaluate all of their activities, which are under their control and create economic, environmental and social impacts, and all stakeholders that affect them together.

Creating a prioritization matrix: Identified priority areas must be prioritized in themselves. Stakeholder analyses must be performed, one-on-one meetings should be made with company executives, and the prioritization analyses of local and global competitors and the global conjuncture should be reviewed.

Preparation of non-financial reports: Escarus, working in collaboration with partners specialized in content and design, also offers support in carrying out reporting in parallel with the communication strategies of organizations.

Escarus provides the following services:

• Integrated Reporting (IR)

• Carbon Disclosure Project (CDP) and Carbon Inventory Reporting

• Task Force on Climate-related Financial Disclosures (TCFD) Reporting

Integrated Reporting

What companies will do in the future as well as what they do today, what strategies, organizational structure, human resources and business plans they will use to design their future activities and how they will proceed are among the elements questioned by all stakeholders, especially by investors.

The integrated reporting (Integrated Reporting, IR) trend, which is the most recent reporting trend created to meet these needs among international practices, is a reporting approach that allow organizations to interpret their existing activities and strategies a perspective of the future, and capital outputs of their activities in this regard be evaluated using inputs.

Escarus offers consulting services in the following processes in the transition to integrated reporting process;

• Evaluation and mapping of in-house strategy and mapping of capital items with one another and the corporate strategy,

• The evaluation and revision of the company's business model with an integrated business model perspective,

• Reporting of the company's outputs and the direct and indirect effects caused by such outputs, particularly in terms of capital items.

CDP and Carbon Inventory Reporting

Carbon Disclosure Project (CDP) is an initiative were companies report their carbon emissions they cause on a voluntary basis. The companies also wish to follow their carbon inventories in order to be able to better manage issues including investor demand, performance monitoring, and managing risks in the value chain.

Within the scope of annual reporting to CDP, an international organization, public disclosure reporting is made to cover the companies’ strategies to combat climate change, the physical/transitional risks and opportunities brought by climate change, and their practices reducing emissions and improving efficiency. Escarus offers reporting consulting services to companies planning to make CDP reporting for the first time by guiding them within the scope of their existing activities, targets and strategies. Escarus offers assistance to companies that make routine CDP reporting in areas including shaping their climate change strategies, managing unforeseen climate change risks and opportunities, reviewing and improving carbon inventory, thanks to its expertise in climate change.

3.4. Task Force on Climate-Related Financial Disclosures (TCFD) Reporting

The TCFD Recommendations issued by the Task Force on Climate-related Financial Disclosures (TCFD) is a framework aimed at how organizations will report their risks and opportunities linked with climate change.

TCFD Recommendations expect the companies to do reporting under four main headings: Governance, Strategy, Risk Management, Metrics and Targets. In preparation for TCFD reporting, Escarus assists companies in all of these headings for the implementation of relevant governance structures, creation of short, medium and long-term strategies aimed at managing climate change risks and opportunities, creation of a risk management system for identifying and assessing risks, determining the targets over relevant Key Performance Indicators (KPIs) and their follow-up and creates a reporting methodology to meet the expectations of stakeholders in accordance with the relevant framework.

Training and Workshops

Escarus designs and offers trainings and capacity building activities on subjects including Energy, Sustainability, Environmental and Social Risk Management, Climate Change and its Financing, Innovation, Resource and Energy Efficiency, Non-Financial Reporting/Impact Reporting, etc.

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