Sustainability Report

Sustainability Report

 

PETROYAG IS ONE OF THE LEADING ORGANIZATIONS IN THE TURKISH INDUSTRIAL OIL MARKET, RANKING AMONG THE TOP THREE!

With its services in the Europe, Middle East and Africa (EMEA) region, Petroyag has increased its sales to 50 thousand tons in 2023.

Petroyag considers R&D investments a company policy and manufactures products in its modern, automated facility in Gebze Organized Industrial Zone, adhering to global standards. The facility has a production capacity of 50,000 tons.

Our sales volume has grown significantly from 255 tons to 50,000 tons today. Our primary objective is to become the leading brand in the Turkish industry and establish a prominent global presence by exporting innovative products. Leveraging Turkey’s logistical advantage, we aim to expand our business through strategic partnerships with foreign companies in the regional market.

It provides sales, consultancy, and after-sales services to industrial organizations with its 22% market share in industrial oils.
Petroyag, established in 1993 with 100% domestic capital, offers new application areas by identifying new products that the industry needs.

Petroyag’s strategy is based on two key principles: understanding the ecosystem and being aware of its capabilities.

UNDERSTANDING THE ECOSYSTEM

Petroyag makes an effort to understand and act in concert with the ecosystem, which incorporates its stakeholders and all actors within its market and is impacted by global trends.

GLOBAL TRENDS ANALYSIS

The following steps are taken to determine global trends affecting the organization:

  • Global trends dominating the world
  • Global trends that may affect the ecosystem(s) incorporating Petroyag
  • Changes in the ecosystem that will occur as a result of these
  • Challenge and opportunity perceptions of these changes
MARKET ANALYSIS

Petroyag conducts market research to analyze the structure and dynamics of the markets it operates in. This includes studying various actors such as agents, special interest groups, distribution channels, new initiatives, press and social media, legislation, and human resources.

STAKEHOLDER ANALYSIS

Petroyag follows a stakeholder-oriented management model, prioritizing fundamental stakeholder expectations in its strategic approach. Stakeholders are categorized as:

  • Customers
  • Employees
  • Business and governance stakeholders
  • Society
  • Collaborations and suppliers
 

BEING AWARE OF ITS CAPABILITIES

Petroyag believes that being aware of its capabilities is as important as understanding the ecosystem when creating a strategic perspective. To realize its capabilities, Petroyag conducts the following analyses:

ANALYSIS OF CORPORATE PERFORMANCE

Petroyag conducts periodic analyses and annual self-assessments to identify areas of strength and areas where there is room for improvement (determining positive & negative trends, successful & unfruitful practices and approaches).

CORPORATE CULTURE

Petroyag is actively pursuing its target culture through cultural activities. Within the scope of the activities which embrace the “Double S Cube” corporate culture model, the following steps are taken:

  • Measuring corporate culture (every two years)
  • Cultural transformation activities
  • Actions to strengthen the values
CORE COMPETENCIES

Petroyag has identified the below capabilities that provide a competitive advantage and are reflected as customer-specific value:

  • Product expertise
  • Industry knowledge
  • Customer-specific solutions
 
 

A new management committee was formed in 2022 with a new management structure. The Board of Directors comprises four family members and at least three independent members.

Activities within the framework of the corporate governance and performance management process

Creating the balanced scorecard
1
Monitoring the balanced scorecard performance
2
Managing the delegation
3
Reviewing the management
4
Determining the Board of Directors principles
5
Managing the internal audit activities
6
 
 
DETERMINING THE BOARD OF DIRECTORS PRINCIPLES AND
MANAGING THE INTERNAL AUDIT ACTIVITIES

Petroyag has established a comprehensive financial and legal audit structure that covers the following topics:

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Petroyag has been using the EFQM model as a management methodology since 2020.

EFQM recognizes the responsibilities assumed by organizations in achieving the United Nations’ goals, and for this purpose, the United Nations’ goals have helped shape the EFQM Model.

  • UN Global Compact
  • UN Sustainable Development Goals (UNSDG)

Organizations using the EFQM Model are expected to act in accordance with the “Global Compact” and “Sustainable Development Goals” beyond their legal obligations.

Petroyag continues its EFQM journey with a cycle of evaluating itself at the end of each year and taking action for the development areas that emerge as a result of this self-evaluation.

 

A plant-based and sustainable game plan that will shape the future of the industry.

With a vision to provide the products of the future today, Proil offers oleo chemical alternatives that will shape the industry’s future, which are plant-based, sustainable and environment-friendly products. Our company, Coral, established to manufacture innovative solutions in the biotechnology field, is growing with new investments, particularly with R&D investments and its innovative products.

As we have a large number of customers, we need our distributors to take more part in the game to make our sales performance more sustainable. We aim to increase our sales with current distributors and collaborate with new distributors who share the same level of discipline.

 

At Petroyag, the Sustainability Committee coordinates and executes all sustainability-related initiatives.

Petroyag addresses sustainability-related matters at the Strategic Goals level, which is determined with a three-year perspective annually. The strategic goals determined here are brought down to the individual level within the systematic dissemination of goals.

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Petroyag follows a strategy emphasizing the importance of sustainable development to contribute to people’s standard of living

Petroyag benefits from two different concepts to focus on the United Nations Sustainable Development Goals (UNSDG) in its sustainability activities.

7 AFFORDABLE AND
CLEAN ENERGY
13 CLIMATE
ACTION
15 LIFE
ON LIFE
14 LIFE
BELOW WATER

A more diverse and cleaner planet

The Executive Board has decided to prioritize the “environment-related” goals among all sustainability goals by adopting the question “What kind of a world?” as its target.

9 INDUSTRY, INNOVATION
AND INFRASTRUCTURE
4 QUALITY
EDUCATION

Innovative and global solutions for uninterrupted manufacturing

Petroyag conducted a materiality assessment in September 2022 to determine which United Nations Sustainable Development Goal the company should focus on. The assessment involved consulting with customers, suppliers, and employees. Based on the results, the company has decided to prioritize the “Quality Education” and “Innovation” goals for the upcoming period.

 
 

The company’s projects and operations are designed and implemented by taking into consideration the sustainable development goals of the United Nations. We aim to contribute to people’s well-being by working for a sustainable future in all aspects.

1 NO
POVERTY
2ZERO
HUNGER
3GOOD HEALTH AND
WELL-BEING
4QUALITY
EDUCATION
5GENDER
EQUALITY
6CLEAN WATER
AND SANITATION
7AFFORDABLE AND
CLEAN ENERGY
8DECENT WORK
AND ECONOMIC
GROWTH
9INDUSTRY,
INNOVATION
AND INFRASTRUCTURE
10REDUCED
INEQUALITY
11SUSTAINABLE
CITIES AND
COMMUNITIES
12RESPONSIBLE
CONSUMPTION
AND PRODUCTION
13CLIMATE
ACTION
14LIFE BELOW
WATER
15LIFE ON
LAND
16PEACE, JUSTICE
AND STRONG
INSTITUTIONS
17PARTNERSHIP
FOR THE GOALS
18
SUSTAINABLE DEVELOPMENT GOALS
FOR THE GLOBAL GOALS
 
 

In our operational sustainability activities, we aim to prevent environmental pollution through waste management, to reduce our emissions as part of the combat against climate change, and to increase our efficiency in environmental responsibility areas such as energy and water management.

Our policy, which consists of our commitment to protecting natural resources, ensuring effective and efficient use of energy, respecting people and the environment, reducing waste, and increasing the recycling rate, continues with the integrated management system established in 2007.

In our environmental risk analysis, we annually review the measures to minimize environmental damages in case of an accident or emergency that may occur during manufacturing activities.

Our compliance with legal requirements within the scope of the Environmental Management System and the Environmental Responsibility is periodically monitored.

sustainability
 
 

WHOLEHEARTED SUPPORT FOR ENERGY EFFICIENCY

While it is mandatory for industrial establishments with an annual energy consumption of 1000 TOE or more to have an energy manager and have energy audits as per the Energy Efficiency Law No. 5627 and the Regulation on Increasing Efficiency in The Use of Energy Resources and Energy, we have made it our primary goal to increase energy efficiency, even though our total consumption is 100 TOE.

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WASTE MANAGEMENT IS THE
MOST CRUCIAL SECTION OF OUR
ENVIRONMENTAL MANAGEMENT SYSTEM.

 

The types of waste that our company generates consist of hazardous waste, laboratory waste, packaging waste, and chemical waste. All of these are temporary waste and are collected in designated storage areas. We then deliver the waste to authorized companies for proper disposal. To comply with legal requirements, our company submits its packaging and hazardous waste declaration every year by the end of March. Third-party audits and legal authorities ensure that we fulfill our legal responsibilities.

Petroyag has received the Zero Waste Certificate by fulfilling the requirements of the zero-waste regulation, which was published by the Ministry of Environment and Urbanization for waste management to protect the environment, human health, and resources.

Petroyag has been a part of the waste declaration system of the Ministry of Environment and Urbanization. The company delivered 283.827 kg of waste in 2020 and 303.503 kg in 2021 to licensed companies via the Integrated Environmental Information System.
2021 303,503 kg
2020 283,812 kg
 
 

As part of our efforts to combat climate change, we have decided to monitor and measure our Greenhouse Gas emissions. Our first Greenhouse Gas emissions calculation was conducted with Scope

  1. Direct Greenhouse Gas Emissions and Scope
  2. Indirect Greenhouse Gas Emissions were calculated using 2020 as the baseline year.
Operational CO2 emissions associated with energy consumption

In metric tons

SCOPE 1 Direct
Greenhouse Gas Emissions		 191,5257 tCO2 109,8530 tCO2
SCOPE 2 Direct
Greenhouse Gas Emissions		 274,401864 tCO2 279,6907 tCO2
SCOPE 3 Emissions from the supply chain
and sales activities 		- -
TOTAL:     389,5437 tCO2

The reference year is taken as 2020, the first year of quantification.

Emissions originating from the supply chain and sales activities could not be quantified due to a lack of data.
There are no biogenic emissions.

 
 

Consuming water drop by drop

Water Consumption
The water consumption decreased by 40% in 2021
as compared to the year 2018.

No wastewater is generated as there is no water usage at any stage of the process during our operations. We perform our manufacturing operations with environmental awareness regarding water management.

2018
4631 m2
2019
4041 m2
2020
3149 m2
2021
3313 m2
 
 

Environmental awareness
is the primary strategy
of our R&D Center.

At the Petroyag R&D Center, technology and product development studies are carried out to develop creative, inventive, competitive, easy-to-use, environmental-friendly products that ensure customer satisfaction. Our main objective through R&D investments is to broaden our reach into new markets and establish ourselves as a global brand with advanced technological capabilities. Additionally, we aim to boost the industry dynamics by offering top-notch products that meet the demands of customers in both domestic and foreign markets, leveraging our high-quality standards and fast manufacturing capacity.

Our company aims to develop products with high added value by synthesizing current formulas with essential additives in our system and to provide added value to our country by decreasing foreign dependency. We plan to establish ourselves as a leading player in the industry by manufacturing our products with our own additives, which will give us a competitive edge in terms of cost and quality.

Open innovation is one of our key strategies, and in this scope, we continue to collaborate with national and international companies, universities, and research organizations. We are currently engaged in several collaborations, including an international project with Hungary, joint activities with Bornova Veterinary Institute, and ongoing studies with academic advisors.

 
 
petroyağ arge

R&D Center

Our R&D Center is constantly growing stronger through academic collaborations and the expertise of our highly qualified staff, who hold postgraduate degrees. We focus on developing projects with alternative and preferably naturally sourced, low-cost raw materials, and we provide innovative products and cost advantages to the various industries we serve.

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Green R&D

We provide the industry with sustainable and innovative products by adding value to 100% naturally sourced raw materials.

Petroyag has established Proil under its roof to offer products manufactured with natural sources as an alternative to its current product portfolio in industrial oils. Plant and animal-based oils and oil-based oleochemical products have been the chemical industry’s most crucial renewable raw materials for many years. Performance, product security, and product economy are equally important in new product concepts.

Proil is committed to offering products and services alternative to imported products and products manufactured with petroleum-origin raw materials and always works with this principle. Within the scope of its current activities, particularly TUBITAK projects and bilateral collaborations, the company has accelerated its infrastructure works for manufacturing oleo esters, which are not produced in Turkey.

 
 

Thanks to our environment and energy policy, we constantly improve
our eco-friendly applications, helping us use natural resources more efficiently.

We make innovative discoveries and
invent in sustainable technologies for a better future.

1

We are committed to reducing our carbon footprint by increasing the use of automated manufacturing processes and reducing energy consumption through regular revisions of our automation systems.

2

We have voluntarily implemented ISO 50001 and made analyzer investments for the monitoring systems of the entire facility. This allows us to analyze our consumption rates and achieve more efficient manufacturing and lower consumption.

3

To lower emissions in our manufacturing facility, we have invested in the latest ventilation technologies that are essential for the environment and HSE.

4

With our digitalization investments, we maintain our environmental awareness by minimizing the use of paper with the paperless workplace principle.

 
 

Digital Transformation Processes

We consulted our department managers at the strategy workshops in 2021 and 2022 and launched our Digital Transformation projects.

We consider that the Quality Department should start the priority with our M-Files QMS library. Besides, it is a priority to quickly transfer all processes to M-Files to avoid any problems that may occur if old archives are deleted in the software currently being used. All necessary actions for designing the essential workflow have been completed.

 
 

Information Security

The Information Security System was established in 2017 based on ISO 27001 Information Security Management System and ISO 22301 Business Continuity Management System standards, and system certification was obtained.

Petroyag has improved its information technology systems by implementing technical infrastructure upgrades and security projects and has taken necessary measures to ensure the most effective information security protection.

Furthermore, by integrating the latest and most advanced technologies into its existing system, the company has made its infrastructure more efficient, secure, and stable, providing the most effective protection.

 

Social Responsibility
and Human Rights

Within the scope of our social responsibility, we carry out various activities in the fields of environment, health, and social development.

We have established a social responsibility committee sensitive to current developments, and we always take a proactive role in critical issues. Social responsibility is an essential part of our business culture, and we will continue to strive to uphold and promote these values in the future.

Petroyag ensures that it complies with the Universal Declaration of Human Rights and all applicable laws and regulations of the countries where it operates. We are committed to protecting the rights of our employees by recognizing the international declarations, directives, agreements, and principles that our country is a party to.

Our company has not received any complaints for human rights violations or discrimination thanks to our sensitivity towards human rights applications since our establishment.

 
 

THE RISING POWER OF WOMEN

2In 2019, it was decided to increase the number of female employees, and the gender distribution of the workforce has started to get balanced over the years. Moreover, the company aims to create a family structure that holds onto its employees despite socio-economic conditions and continues to grow bigger under any circumstances.

Distribution by Gender
% 0 Female Employee
 
% 0 Male Employee
 
Employee Distribution
% 0 Field Employee
 
% 0 Office Employee
 
Growth

The number of employees in our company was 77 at the end of 2019, which increased to 86 in 2020, 99 in 2021, and 113 by late 2022.
  2019 2020 2021 2022
Growth Rates        
Number of Employees 77 86 99 113
Growth Rate   %11,7 %15,1 %14,1
       
Turnover        
Turnover Rate %6,49 %4,65 %8,08 %6,2
       
Seniority        
Seniority 9,12 8,37 7,32 6,18
 
 
SOCIAL
PERFORMANCE INDICATORS
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ENVIRONMENTAL PERFORMANCE INDICATORS
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CERTIFICATES AND DOCUMENTS

ISO 9001:2015
QUALITY MANAGEMENT
SYSTEM CERTIFICATION
ISO 14001:2015
ENVIRONMENTAL MANAGEMENT
SYSTEM CERTIFICATION
ISO 45001:2018
OCCUPATIONAL HEALTH
AND SAFETY SYSTEM
CERTIFICATION
ISO 27001:2013
INFORMATION SECURITY
MANAGEMENT SYSTEM
CERTIFICATION
ISO 10001:2018
CUSTOMER SATISFACTION
MANAGEMENT SYSTEM
CERTIFICATION
ISO 17025
LABORATORY
ACCREDITATION
CERTIFICATION
ISO 50001:2018
ENERGY MANAGEMENT
SYSTEM CERTIFICATION
 
ZERO WASTE
CERTIFICATION
 
AUTHORIZED ECONOMIC
OPERATOR STATUS
CERTIFICATION

AWARDS

2017
SECTORAL
PERFORMANCE
AWARD
2020
SECTORAL
PERFORMANCE
AWARD
2020
BEST MANAGED
COMPANY
AWARD
2019
BRITISH SAFETY
COUNCIL –
INTERNATIONAL OCCUPATIONAL
HEALTH AND
SAFETY AWARD
2021
SECTORAL
PERFORMANCE
AWARD