Sustainability Report - 2025

1. Message from Management

As a transformer manufacturer, our products sit at the heart of electricity networks — and the efficiency of those products shapes the energy system for decades. We believe sustainability in our industry is not a marketing exercise: it is engineering. Every watt of loss we remove from a transformer design is removed for the 30+ years that unit stays in service.

This report summarises, in plain terms, what Datsan is doing today — on-site renewable generation, low-loss product design, responsible use of materials, and investment in the people and region we operate in — and what we intend to improve over the coming years. We have deliberately kept it short and factual. Where we do not yet measure something reliably, we say so, and we commit to measuring it.

2. About Datsan

Datsan is a manufacturer of oil-immersed distribution and power transformers and permanent magnet generators, based in Kızıltepe, Mardin, in southeastern Türkiye. Our transformers are designed and type-tested in accordance with IEC 60076 and serve utilities, industrial plants and renewable energy projects across Africa, the Middle East, Europe and Eastern Europe.

With a team of approximately 50 people, we combine in-house electromagnetic design, manufacturing and testing under one roof, and we export to more than 40 countries.

Key figures (2025)

3. Our Approach

Our sustainability approach concentrates on the areas where a mid-sized transformer manufacturer has real leverage: the energy performance of our products in service, the energy we consume in manufacturing, the materials we use, and the wellbeing of our people and community. We align our efforts with the UN Sustainable Development Goals most relevant to our business:

• SDG 7 — Affordable and Clean Energy: efficient transformers and renewable generation equipment
• SDG 8 — Decent Work and Economic Growth: qualified employment in a regional development priority area
• SDG 9 — Industry, Innovation and Infrastructure: reliable grid infrastructure for developing markets
• SDG 12 — Responsible Consumption and Production: highly recyclable products, controlled use of oil and metals
• SDG 13 — Climate Action: low-loss designs and on-site solar power

4. Environment

4.1 On-site solar generation

Our Kızıltepe facility operates a 217 kWp rooftop photovoltaic plant built on three 50 kW string inverters. Mardin is one of the highest-irradiance regions in Türkiye, and the plant generates approximately 200 MWh of clean electricity per year, supplying a substantial share of the factory's demand and avoiding roughly 88 tonnes of CO₂ emissions annually at the Turkish grid emission factor.

In 2025 we completed a detailed performance review of the plant, corrected an inverter grid-code configuration issue that had limited output, and restored the system to its full design capacity — a reminder that monitoring, not just installing, is what makes renewable assets deliver.

4.2 Product efficiency — our biggest lever

For a transformer manufacturer, the largest environmental impact is not in the factory: it is in the losses of the products during their 30-to-40-year service life. A single distribution transformer dissipates energy continuously, day and night, whether loaded or not. Reducing no-load and load losses at the design stage is therefore the single most effective climate action we can take.

Our designs comply with the Tier 2 loss requirements of EU Ecodesign Regulation (EU) 548/2014, using low-loss grain-oriented electrical steel cores and optimised winding geometries. Loss levels (Po, Pk) and Peak Efficiency Index (PEI) are calculated and guaranteed per unit, and verified during routine and type tests. For non-standard ratings we apply the regulation's interpolation methodology so efficiency requirements are met across the entire product range, not only at catalogue values.

We also manufacture hermetically sealed transformers, which eliminate the conservator, reduce oil oxidation and moisture ingress, extend oil life and lower the risk of leaks over the unit's lifetime.

4.3 Materials and circularity

Transformers are among the most recyclable industrial products made: by mass, more than 95% of a unit — electrical steel, copper, aluminium, mild steel and mineral oil — can be recovered at end of life. Our contribution to circularity focuses on:

• Segregating and returning production scrap (core steel offcuts, copper and aluminium winding scrap) to the recycling chain
• Controlled storage and handling of transformer oil, with containment measures against spills
• Designing for repairability: bolted, serviceable constructions that allow rewinding and refurbishment instead of replacement
• Using PCB-free mineral oil exclusively, in line with international requirements

4.4 Waste and environmental compliance

Hazardous and non-hazardous waste streams are separated at source and handed over to licensed disposal and recycling companies in accordance with Turkish environmental regulation. Our environmental management practices are certified under ISO 14001, and as part of our 2026–2028 roadmap we intend to begin systematic tracking of energy and waste intensity per unit of production.

5. People and Community

Datsan operates in Kızıltepe, Mardin — a region designated as a development priority area in Türkiye. Providing stable, qualified industrial employment here, including engineering positions, is one of the most direct social contributions we make. Our workforce of approximately 50 people spans design engineering, manufacturing, testing and international trade.

Our priorities in this area are:

• Occupational health and safety: systematic risk assessment, personal protective equipment, and safety training appropriate to high-voltage testing and heavy manufacturing environments
• Skills development: continuous technical training in transformer design, CAD/simulation tools and international standards for our engineering team
• Local employment and supplier development in the Mardin region
• Equal treatment and a workplace free of discrimination

6. Governance and Quality

Quality and integrity are commercial necessities in the transformer business: our units are purchased by national utilities through tenders that demand full traceability. Every transformer undergoes routine testing per IEC 60076, and customers are invited to witness Factory Acceptance Tests (FAT) at our facility — a practice we regularly host for international clients. Our quality management system is certified to ISO 9001.

We conduct our international trade in compliance with applicable export control and customs regulations across the 40+ countries we serve, and we maintain transparent, document-based commercial relationships (L/C, inspection certificates, third-party test witnessing) with utilities and EPC contractors.

7. Targets 2026–2028

We prefer a short list of verifiable commitments over broad declarations:

8. About this Report

This report covers the activities of Datsan Transformer at its Kızıltepe, Mardin facility for the 2025 calendar year. It has been prepared for general informational purposes and has not been externally assured. For questions regarding this report, please contact us via www.datsan.com.tr.