YILDIZ HOLDING RESPONSIBLE SOURCING POLICY

Introduction

At Yıldız Holding, we deliver nutritional, safe, innovative, and sustainable products of high quality to our customers as part of our This is Our World strategy. While inspiring our customers by our products, we also aim to play a role in the happiness of thousands of suppliers, producers, farmers, and various stakeholders.

In collaboration with its group companies and stakeholders, Yıldız Holding works towards the purposes of supporting sustainable development, improving working conditions in the supply chain, reducing the impact of climate crisis, eliminating poverty and hunger, and ensuring food safety for upcoming generations. As Yıldız Holding, we are committed to collaborating with public institutions, non-governmental organizations, sectoral entities, and international institutions and initiatives to reach these goals.  

Purpose

Yıldız Holding Responsible Sourcing Policy (Policy) was prepared for the purpose of creating long-term shared value for all stakeholders and collaborating with our suppliers towards a sustainable future.  As we grow sustainably, we aim to make a positive social impact on the lives of the stakeholders within our supply chain and reduce our negative impact on the environment.  

Yıldız Holding Responsible Sourcing Policy defines the environmental, social, and ethical responsibilities to be observed by all global product and service providers of all our group companies. The policy applies to all group companies and their suppliers. We expect our suppliers to observe the Policy and inform their own employees and supply chains about it.

This Policy was created based on International Labor Organization (ILO) Declaration on Fundamental Principles and Rights at Work, United Nations (UN) Universal Declaration for Human Rights, UN Global Compact (UNGC) Sustainable Development Goals and the Organization for Economic Co-operation and Development (OECD) Guidelines for Multinational Enterprises.

Basic Principles

Child Labor

Suppliers must comply with the legal minimum age for employment and never employ workers under the age of 15, as specified in item 138 of International Labor Organization Agreement (and, of 14 in certain developed countries).

Forced Labor

Employment must be voluntary. Suppliers should, under no circumstances, benefit from forced labor or resort to illegal practices.

Working Hours and Wages

Legal leaves, compensations, overtime pays, and all other benefits and rewards must be provided in compliance with relevant legal requirements. Working hours and overtime regulations must comply with the legal, as well as sectoral standards.

Safe and Clean Working Environment

Suppliers are responsible for providing safe, healthy, and hygienic working environments to their employees.

Environmental Protection

Compliance with all relevant legal and legislative environmental regulations must be ensured. Required environmental permits must be obtained and their legal and regulatory compliance must be ensured. Suppliers must work towards reducing their overall and natural resource consumption, as well as their waste to a minimum. Waste disposal and wastewater discharge must be performed in compliance with environmental commitments and restrictions. Environmental impact of all operations to be realized must be considered in decision making.

Quality and Food Safety

Products and services must comply with the quality and safety standards specified in relevant regulations and legislations. Along with food safety and quality requirements, Quality Standards of Yıldız Holding companies must also be observed. 

Code of Conduct

Suppliers must comply with all the legal and legislative regulations to which they are subject and keep their records transparent and up to date to prove compliance with relevant regulations. They should avoid situations which might lead to a conflict of interests and protect the intellectual property rights of their partners. Suppliers are expected to observe Yıldız Holding Ethical Principles and Working Values.  

Raw Material Sourcing Principles

Production in Yıldız Holding and group companies is based on many different raw materials cultivated in various parts of the world, including hazelnuts, cocoa, palm oil, and wheat. It is of great importance for the future of our business to source our agricultural raw materials in a safe and sustainable way. We are committed to ensuring a sustainable supply chain by increasing traceability and transparency.

We expect our raw material suppliers to comply with the basic principles of Yıldız Holding Responsible Sourcing Policy.

Palm Oil Sourcing

Palm oil is an important and versatile plant-based raw material used in many industries, particularly in the food sector.  The recent increase in the global demand for palm oil has resulted in the destruction of tropical forests and peatlands, as well as the violation of the rights of local communities in the regions where it is intensely cultivated.

To enable a traceable, transparent, and sustainable supply chain for palm oil, we aim to prevent deforestation and ensure respect for the rights of workers and local communities in the production of palm oil and its by-products. As a member of the Roundtable on Sustainable Palm Oil (RSPO), we adopt the standards and practices set forth by RSPO in our supply chain and aim to further expand these standards. To this end, we are committed to:

  • Declaring to the public the list of our palm oil mills and any relevant grievances we may receive,
  • Monitoring the compliance of our palm oil suppliers with the Raw Material Sourcing Principles specified in the Policy and support their development to this end,
  • Transparently announcing our sustainable palm oil sourcing strategy, goals, and performance to the public.

The Prosperity of Farmers and the Protection of Agricultural Areas

In wheat procurements, we grant privilege to purchases made directly from farmers, and carry out contractual planting by providing seed support to farmers. One of the most significant ways to protect agricultural areas is through ensuring that manufacturers’ agricultural activities have economic value and that manufacturers receive compensation for their efforts. In the food and beverage industry, our main area of activity, we work with this responsibility in mind. 

Sustainable Cocoa

Cocoa is important to us. So are the people that produce it. By adopting the principles of sustainable supply, we  support the economic and social development of the communities that produce one of our key ingredients. 

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Yıldız Holding is a proud sponsor of PACTS (Processors Alliance for Cocoa Traceability and Sustainability). PACTS seeks to increase cocoa yields by creating an environmentally friendly and professional production chain. The organization offers cocoa producers support through education, agronomics, and education in innovative production practices.

In 2014 we began investing in the PACTS program, to improve the living and working conditions of cocoa producers in the Ivory Coast. With this investment, PACTS meets the clean drinking water and solar energy needs of fermentation and drying facilities. The work and lives of both the teams in these facilities and in the local community will be improved significantly.

The investment will bring clean water to as many as 4000 people at each of eight facilities in the Ivory Coast which currently do not have access to clean drinking water. It is expected that by the completion of the project there will be a reduction in diseases resulting from polluted drinking water and an improvement in the general health conditions of the local community. In addition, solar lighting systems are being implemented at 15 drying facilities. The solar panels will illuminate both the indoor and outdoor areas of the buildings, and it will be possible to charge electric tools for seven hours per day, increasing safety levels and field of vision at night.

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In 2012 Ülker Chocolate, the largest consumer of cocoa in Turkey, joined the World Cocoa Foundation, the global platform for chocolate manufacturers. Together with this international platform we aim to support the economic and social development of cocoa farmers by adopting sustainable principles in agricultural production to increase prosperity around the globe.

As the first Turkish company to join the World Cocoa Foundation, we support projects conducted by the foundation to improve sustainability in the cocoa sector and to increase prosperity among cocoa farmers. Founded in 2000, the World Cocoa Foundation, is composed of members from global corporations in the chocolate sector. The foundation completes projects in countries where cocoa is produced, in cooperation with governments, universities, civil organizations and farmers. These projects include research to increase the quality and yield in cocoa production, and education initiatives for cocoa farmers and their families.