Recent global developments clearly demonstrate the need for an effective and holistic risk management approach in environmental, social, and governance (ESG) matters. These risks have become strategic factors that must be addressed not only for their operational impacts but also in consideration of stakeholder expectations and social sensitivities.
With this awareness, the Group has implemented a robust governance approach focused on sustainable growth under the leadership of its Board of Directors. In this context, the CareforNext Sustainability Strategy, developed in alignment with the United Nations Sustainable Development Goals (SDGs), has been structured to be adopted and implemented across all levels and functional areas of the organization. Through this structure, the integration of the sustainability strategy into the corporate culture is ensured, and the proactive management of ESG risks in alignment with the Group's long-term value creation goal is made possible.
At the Group, sustainability governance is overseen by the Board of Directors, which is the highest decision-making body. The regular review, approval, and supervision of sustainability and climate strategies fall under the responsibility of the Chairperson of the Board. The Chairperson of the Board regularly monitors progress made in line with the climate commitments set in accordance with the Group's vision of becoming carbon neutral by 2050. This strategic approach is clearly and explicitly defined within the corporate structure through the Annual Strategic Plans approved by the Board of Directors.
The Board of Directors Sustainability Committee, operating under the leadership of the Chairperson of the Board, fully embraces the CareforNext Sustainability Strategy and related efforts, defining the relevant policies and approaches. The Committee is responsible for the development of sustainability and climate policies, the identification of strategic trends, the assessment of risks and opportunities, as the coordination and monitoring of efforts towards established targets. Within this scope, the Committee is responsible for defining sustainability approaches and standards across the Group; developing ESG policies in line with material topics, risks, and opportunities; ensuring the definition and public disclosure of sustainability targets; supporting integration across the Group by monitoring sustainability efforts and promoting project development; approving and monitoring performance targets in the sustainability roadmap and practices; and reporting to the Board of Directors through annual reports within the prescribed timelines.
The Sustainability Executive Committee, chaired by the CEO and coordinated by the Chief Strategy Officer, convenes to ensure the effectiveness of the sustainability and climate governance structure at the operational level. The Sustainability Executive Committee, composed of Executive Committee members, is responsible for developing the sustainability and climate vision and strategy; identifying material topics; maintaining communication with internal and external stakeholders; and monitoring progress and performance in line with the targets of the sustainability working groups.
The Committee also develops the Group's climate change adaptation strategy and ensures its integration across all business units. The Committee sets climate-related targets and key performance metrics, disseminates them to relevant units, regularly reviews and monitors these metrics, and identifies necessary actions by assessing climate-related risks and opportunities across product groups and production locations.
The activities and guidance of the Sustainability Executive Committee are regularly reported to the Board of Directors Sustainability Committee through the Sustainability Directorate, thereby helping shape the strategic sustainability agenda.