Beko: Supplier ESG Plan Delivering Sustainability Success

Hakan Bulgurlu, CEO of Beko
How is home appliance giant Beko using their sustainable supply chain management and Supplier ESG Programme to deliver sustainablity success?

The Beko 2023 Sustainability Report details the progress made by the company alongside its sustainability targets, including being a net-zero business by 2050. A key component of the sustainability strategy is the company approach to sustainable supply chain management and supplier sustainability index.

What is the Beko supplier sustainability index?

The Supplier Sustainability Index project, developed as part of the Beko Supplier ESG Programme, has made significant progress having initially launched with Tier-1 material and product (OEM) suppliers, the project extended in 2023 to include logistics suppliers. 

A dedicated in-house team from the Beko Purchasing, Small Domestic Appliances, and Product Sourcing Departments, in collaboration with the sustainability teams, leads the project. The company has partnered with an independent accredited audit firm that provides a supplier data monitoring software platform and works closely with the purchasing team, helping with supplier outreach and advising on supplier queries.

The project's primary objective is to understand suppliers' ESG-related risks and opportunities through comprehensive data collection and analysis. The ultimate goal is to reduce Scope 3 emissions across the value chain. Each year, the company conducts supplier screening processes to identify significant suppliers based on ESG-related risks and business relevance. 

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What sustainability targets does Beko set procurement partners?

Beko also requires certain standards  and as a minimum, have established ISO 14001 Environmental Management Systems and ISO 50001 Energy Management Systems. The ISO 14001 Environmental Management System provides guidance as to which environmental systems should be established. The ISO 50001 Energy System provides guidance as to which energy efficiency measures must be implemented. Suppliers are encouraged to build on top of these systems to increase their positive impact.

A new target is also set so suppliers that fit certain criteria are expected to reach 100% green electricity usage by 2030. 

Beko Everfresh+ Home Appliances (Credit Beko)

How does Beko work with suppliers to improve sustainability performance? 

The company has intensified its efforts to enhance supplier sustainability and compliance through its robust Supplier ESG Programme. Following internal evaluations and third-party ethics audits, it identifies non-conformities and promptly issues corrective action plans to the suppliers involved. The dedicated sourcing team, in collaboration with third-party service providers, works closely with suppliers to address these non-conformities both on-site and online, providing clear guidance to improve their ESG performance.

In 2023 it identified significant findings from surveys and audits, leading to the improvement of 650 non-conformities among its suppliers. The company has prioritised corrective actions with all high-risk and middle-risk suppliers, directly assisting 17 of these suppliers to mitigate substantial negative impacts.

To ensure continuous improvement, Beko has implemented various initiatives, including comprehensive training and technical capacity enhancement programmes. A key part of this strategy is the Supplier Training Programme, which is designed to deepen suppliers' understanding of ESG strategy, policies, and procedures. This training, delivered through online webinars and technical consultancy services, covers the company’s Global Responsible Purchasing Policy, ESG targets, and business strategy.

In 2023, it launched the Digital Education Platform, offering sustainability training in 11 different areas, such as ISO Environment and Energy Management Systems, GHG inventory calculation methods, and occupational health and safety. 

How Beko is committed to net-zero by 2020

Hakan Bulgurlu, CEO of Beko, said: "At Beko, we aren't just creating home appliances, we're innovating for a sustainable future. This past year has seen us reach significant milestones in green energy and recycling, but we see these as steps on our journey, not the destination. Our goal is clear: to create home appliances that not only meet the needs of our consumers but also contribute positively to our planet. We're committed to becoming a net-zero business by 2050, and each achievement brings us closer to this goal. Our role extends beyond manufacturing; we're striving to make every home a beacon of sustainability and a testament to a greener future."

Beko under parent company Arcelik has 55,000 employees throughout the world with its global operations through its subsidiaries in 57 countries and 45 production facilities in 13 countries including Türkiye, UK, Italy, Romania, Slovakia, Poland, South Africa, Russia, Pakistan, India, Bangladesh, Thailand, and China. Beko became the largest white goods company in Europe with its market share (based on volumes) and reached a consolidated turnover of EUR 8 billion in 2023. 

Find out how other companies like Colgate-Palmolive, Mars, Modelez and Jaguar Land Rover leverage procurement to achieve net-zero targets.


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