Strategic Risks and Opportunities Task Force

- INTRODUCTION
- RISK AND OPPORTUNITIES STRATEGIC TASK FORCE'S RESPONSIBILITY AREA
- SUSTAINABILITY MANAGEMENT INCENTIVE MECHANISM
Strategic Risk & Opportunities Task Force presents the evaluations, which are carried out within EMEA and on the impacts of climate change, sustainability practices, just transition mechanisms and climate compatibility approaches, to the board of directors, along with the related specific strategic elements (risk and opportunity distribution). It guides the sustainability committee leader and the working groups within the committee to develop an action plan in line with the strategies. It presents the evaluations on investment and budget for the actions and projects of top priority to the board of directors. The representation of the board member ensures control over the impacts of risks and opportunities by leading the Strategic Risk and Opportunities Task Force. This involves reviewing EAE Lighting’s sustainability reports and derivative data to facilitate the board’s oversight of performance indicators for periodic performance improvement. It defines harmonising corporate approaches aligned with the principle of managing with objectives to transpose transition plans across all company units. By reviewing the development plans of critical suppliers regarding climate compliance, it identifies intersections within strategic objectives that align climate targets with the goals of the Product and Business Development Directorate and the R&D-Innovation Directorate. It monitors the periodic and financial weight of climate change within corporate risk management functions, presents detailed investment plans to the board, and ensures representation.
Designed as a high-level corporate mechanism that prioritises climate and sustainability issues, the Risk and Opportunities Task Force plays a role in shaping business strategies, guiding risk management policies, directing annual budgets, setting performance targets, monitoring and auditing the implementation of transition plans, reviewing R&D and innovation priorities, and evaluating the development plans of critical suppliers regarding climate compliance.
The Strategic Risk and Opportunities Task Force is responsible for conducting analyses on areas of risk and opportunity related to climate change and sustainability, ensuring the dissemination of risk-opportunity areas at the departmental level, tracking global, regional, and sectoral risk analyses and climate compliance outlook reports (IEA, UNEP-FI, UNGC, SBTi, IPCC), developing departmental action plans for the localisation of climate scenarios following these analyses. Climate-related strategies, strengths and weaknesses, action plans, strategic planning, performance evaluation and fund management proposals are discussed in this committee and presented to the board of directors. The proposals for feasibility of the active projects of the task force and the sustainability committee working groups and access to funding sources are made simultaneously within both mechanisms, under co-chairmanship. The task force reports directly to the board of directors and the chairman of the sustainability committee every three months.
The Strategic Risk & Opportunities Task Force is led by executives with the titles of Board Member, General Manager Responsible for Sustainability and Sustainability Committee Chairman, who have direct responsibility in the board of directors within the scope of sustainability management. The decision-making, steering and management role of the Risk & Opportunities Strategic Task Force on climate change analytics, action plans and strategic climate action in the Sustainability Committee is included in the committee procedure.
- To ensure that environmental, social and economic risks about climate change, carbonization and circularity and the extent of their impacts are identified, measured, monitored, recorded, audited and reported, and that any public disclosure is reviewed, and improvements are made.
- To set decarbonization-oriented qualitative and quantitative evaluation criteria for each of the links/components of the market, marketing, customer satisfaction, logistics and supplier chain,
- To make proposals for investment, project and improvement activities to the Board of Directors, in coordination with the R&D Centre, by evaluating the potential to benefit from national and international fund supports in new-generation ecological and technological sustainability and adaptation to climate change, and applicability of them to business processes,
- To ensure that an informative report, which includes the following details, is drawn up for submission while making investment, project and improvement proposals to the Board of Directors:
We are considering providing incentives to our employees within 2 years as a result of managing critical climate and sustainability issues and achieving the goals.
The incentive (and deterrent) mechanism will initially be implemented within the scope of the risk and opportunity strategic task force, the sustainability committee, and its sub-working group members. Subsequently, incentive practices will be extended to all employees. Reward systems will be used as incentive mechanisms in coordination with Human Resources functions, while deterrent mechanisms such as suspension and restriction will be applied as deterrents.
For committee members who perform well in climate change prevention and adaptation efforts, rewards, project fund management and feasibility support, consultancy service procurement increases, and performance incentives defined in the system will be planned. For committee members who do not meet performance expectations in climate action, deterrent measures such as removal from the committee and related working groups, and periodic reductions in budget items are considered. To encourage behavioral change, an internal project/application competition is planned as a rewarding activity. Award mechanisms will include writing articles, participating in scientific meetings, and representing the company in congresses and events organized by international organizations, with the right to present.
After 2 years, based on the sustainability and climate change mitigation and adaptation performance included in the balanced scorecards for processes and units, long- and short-term incentive plans will be introduced for process owners, including progression in their levels and managerial positions, as well as success bonuses in various amounts under maximum reward schemes. The level progress will be implemented by the Human Resources Unit, incorporated into the performance system, and the incentive process will be carried out with approval and oversight from the Board of Directors and the Sustainability Committee Chairperson.