Turkey’s Sustainable Powerhouse
Sustainability Report 2020 Table of Contents
12 Our Fields of Activity 42 Our Proven Professional 80 Our Innovation-Driven At ASELSAN, we have undertaken 14 Our Key Sustainability Indicators Management Approach Product and Service 42 Corporate Governance Approach significant duties for over 40 years not 16 ASELSAN at a Glance 44 Ethical Principles 80 Product and Service Quality 16 ASELSAN in Brief 45 Internal Audit 82 Technology and Innovation 18 Message from the Chairman, 46 Combatting Bribery & Activities only in the defense of our country but President and CEO Corruption 92 Information Systems and 22 Our Key Financial and 48 Risk Management Information Security also in many other areas of life thanks Operational Indicators to our products equipped with advanced 24 Our Organizational Structure 52 Our Value-Driven Human 96 Our Value-Driven Supply 25 Our Shareholding Structure Resources Approach Chain Management 26 Mission and Vision 54 Employee Profile 98 Supplier Evaluation technology. Our customers are confident 28 Awards 58 Rights of Employees 111 Localization Efforts with 30 Milestones of Our Sustainability 58 Social Diversity and Equal Local Companies that they can receive technical support Journey Opportunities no matter the circumstances, and this 59 Recruitment 112 Our Environmental 32 Our Future-Driven 62 Performance Development, Responsibilities is the reason why our products provide Sustainability Approach Career and Talent 112 Environmental Management 32 Our Material Sustainability Issues Management 114 Climate Change Management 34 Our Stakeholder Map and 64 Remuneration and Fringe 114 Emissions and Energy confidence while being used for long Communication Approach Benefits 118 Water Management 40 Memberships and Initiatives 65 Employee Development 119 Zero Waste Management years. Our efforts are also focused on the Supported and On-the-Job Training 122 Environmental Compliance Opportunities 123 Green Solutions in Operations sustainability of our Company in terms of 68 ASELSAN Academy 123 Information Systems Graduate Program 125 Facility Management financial and corporate governance. 72 Internal Communication and Employee Motivation 127 Our Contribution to Social 73 Decent Working Conditions Development 74 Human Rights In our activities, we pursue the vision of 75 Occupational Health and Safety 78 Occupational Health and becoming an eco-friendly and sensitive Safety Management System national technology firm that continues its About the Report sustainable growth thanks to the values we create on the global market and maintains its position as a preferred and strategic With its 8th sustainability report in 2020, ASELSAN is disclosing its sustainability performance in a wide range of areas from economy and the environment to corporate governance and social investments to the stakeholders in its impact area. This business partner with its competitive edge. report has been prepared by using the Core principles of the 2016 Standards by the Global Reporting Initiative (GRI) as a guide. Publishing Sustainability Reports on an annual basis, the Company also aims to build an interactive relationship with all its stakeholders, from employees to investors, based on the principles of transparency and accountability. The report includes ASELSAN’s economic, corporate, social, and environmental sustainability activities in Turkey. The sustainability performances of the Company’s foreign affiliates, as well as operations abroad, are excluded from the scope of this Sustainability Report 2020. ASELSAN’s Investor Relations Department has assumed the role of coordination within the Company’s organizational structure during the reporting process.
Questions, feedback, and comments about the ASELSAN Sustainability Report 2020, available in Turkish and English, can be submitted to the following address: [email protected] EMPLOYEE-CENTERED APPROACH
We believe that the most important factor behind our success is our employees. As a company that did not suspend production during the pandemic, Faaliyet Alanlarımız we took all the necessary measures so that our employees work in a happy, peaceful, and safe environment. We also launched the “a BİL-GE Platform” on online and mobile channels to make employee development sustainable in 2020. We stood by 9,000 employees on their development journeys through the training sessions specifically designed for the pandemic. With this project, we were among the finalists for the Global Council of Corporate Universities awards. JOINING FORCES WITH OUR SUPPLIERS
We are going through a period where the coronavirus exposed the fragility of global production and supply chains. We devise our supply system by forecasting possible crisis scenarios. As a result of our long-standing and rather rigorous localization and nationalization efforts, local companies make up the majority of over 4,000 suppliers we work with. We take reliable and firm steps towards the future with our suppliers on the “Gücümüz Bir (Powerful Together)” online platform launched under the theme of “Joining Forces” when faced with challenging conditions. RISING OVER TECHNOLOGY AND R&D
In parallel with our vision of becoming Turkey’s technology hub, we carry our country forward. We conduct R&D activities as they are instrumental in reaching this vision. We finance these R&D activities either with our internal sources or with customers’ sources. ASELSAN is among the companies with the highest R&D spending in Turkey. We attain sustainable achievements and grow consistently through these investments. ECO-FRIENDLY PRODUCTION
Since 2009, we have continued our operations with the Occupational Health and Safety and ISO 14001:2015 Environmental Management System certifications which are issued by ISO (International Organization for Standardization) as one of the most important and recognized standards in the globe. In an attempt to reduce carbon emissions, we have been calculating carbon emissions since 2009 in our facilities. We are the first Turkish defense industry company to have taken part in the CDP survey. In addition, we take our eco-friendly approach forward through the high scores we obtain every year. BREATHING LIFE INTO PEOPLE AND THE ECONOMY
As part of innovative projects, we develop key solutions not only in the defense industry but in different areas of day- to-day life. In only 14 days and utilizing 100% domestic sources, we developed an ICU ventilator equipped with the most advanced technology of the world, breathing life into Turkey and the globe during the pandemic. We increase our export revenues and breathe life into the economy as well thanks to the solutions we develop. 12 ASELSAN Sustainability Report 2020 Our Fields of Activity 13
Our Fields of Activity
Founded in 1975 by the Turkish Land Forces Foundation in Ankara, ASELSAN is a rising power of the global defense industry.
Communications Radar and and Information Electronic Warfare Technologies Systems
Transportation, Microelectronics, Security, Energy, Guidance, and Automation and Electro-Optics Health
Defense System Technologies 14 ASELSAN Sustainability Report 2020 Our Key Sustainability Indicators 15
Our Key Sustainability Indicators
Consistent Growth and A World-Class Professional Competent and Dynamic Turkey’s Largest OHS Practices A Responsible Social Investments Overseas Business Corporate Governance Human Resources R&D Center with a Focus on Management Bolstered By Volume... Approach Business Continuity Approach Minimizing Employees’ and Efficiency Environmental Voluntary Impacts Participation
Total Revenue (TRY Thousand) Corporate Governance Total Number of Total Award Winner in the CDP Reporting A Social Rating: Employees: TRY 3,356 Million Merit Category with a Score of A- Responsibility R&D Spending at the 2020 British Movement 24% Safety Awards Championed Increase 9.29 8,692 by Employees: Fundamental ASELSAN Social ‘19 13,012,551 Total Environmental Innovation TRY 2,875 Million A Leading Awareness Leaders (ASİL), ‘20 16,104,455 Ratio of Shares Traded Number of “Talent A” Externally-Funded Company with Training for 5,038 and the Solidarity in Borsa Istanbul: Employees: R&D Spending ISO 45001:2018 Employees Foundation Certification Established under 25.80% 115 in Turkey... the ASİL Structure Total EBITDA (TRY Thousand) Total In Macunköy, Turkey’s Most TRY 481 Million Akyurt and Gölbaşı Preferred Internally-Funded Total Hours of Premises Vocational High 38% R&D Spending Training Delivered to Total 1,862,000 kg School: ASELSAN Increase Employees: of Waste Recycled Vocational and 121,701 hours Technical High ‘19 2,853,811 School 175 Patent ‘20 3,927,476 Applications and 40 Registrations in 2020
Total Assets (TRY Thousand) 33% Increase ‘19 25,633,044 Innovative practices in ‘20 34,094,229 the field of sustainability 16 ASELSAN Sustainability Report 2020 ASELSAN at a Glance 17
ASELSAN in Brief
ASELSAN broke records in 2020 despite the COVID-19 pandemic that turned the world upside down.
ASELSAN is the world’s 48th biggest foreign customers. Active in a wide 16 billion. The Company’s net profit Exports to 70 countries also opened offices and branches in Total Assets defense industry company with its range of business areas, ASELSAN also increased by 33% compared to ASELSAN continues to grow its global these countries. Taking these leaps, sales and production network spanning operates in the defense, electronics, last year to stand at TRY 4.5 billion. presence rapidly. Launched two years the number of affiliates and branches 34.1 12 countries on 3 continents. The military and civilian communication, Having increased collections through ago, the Global Leadership Vision in and outside Turkey reached 28. TRY Billion Company takes confident steps microelectronics, guidance, electro- export revenues significantly, ASELSAN started to bear fruits as of the last forward on its transformation journey optics, radar and electronic warfare, concluded 2020 with a strong cash year. Indeed, the year 2020 proved to Turkey’s largest R&D company to become a global defense industry defense system technologies, security, position. be quite a lucrative operating period, ASELSAN’s mission is to reduce ASELSAN’s total assets player. transportation, energy, and healthcare during which the highest export Turkey’s reliance on foreign reached TRY 34.1 billion sectors. ASELSAN’s Earnings Before Interest, collections coupled with the highest technology and provide its domestic as of the end of 2020. A global defense company Taxes, Depreciation, and Amortization export order placements were seen and foreign customers with high Founded in 1975 in Ankara, Record-breaking growth during the (EBITDA) rose by 38% to a record and the number of export countries added value, innovative and reliable ASELSAN is Turkey’s biggest COVID-19 pandemic TRY 4 billion. Meanwhile, the EBITDA reached 70. ASELSAN founded products. In the upcoming period, advanced technology, defense, ASELSAN broke records in 2020 margin went higher than forecasts, up companies in three countries last ASELSAN aims to gain further and security company. ASELSAN despite the COVID-19 pandemic that by 24.4% - which is an all-time high in year, as part of its strategy to tackle large-scale orders, while expanding primarily serves the Presidency of turned the world upside down. In ASELSAN’s history. processes with overseas customers and remaining Turkey’s largest R&D Defense Industries and Turkish Armed 2020, ASELSAN’s turnover rose by in their own country in the most company. Forces, in addition to domestic and 24% year-on-year totaling over TRY prompt and effective manner. It has 18 ASELSAN Sustainability Report 2020 ASELSAN at a Glance 19
Message from the Chairman, President and CEO
ASELSAN’s net profit reached TRY 4.5 billion, up by 33% compared to the previous year. With collections supported by export revenues, we managed to conclude the year with a solid cash position.
Esteemed Stakeholders, Highest sales and profitability of all times The year 2020 is likely to leave a mark A global brand in its field, ASELSAN on the 21st century due to the jarring attained a turnover of TRY 16 billion, effects of the COVID-19 pandemic. up by 24% compared to the previous While it dealt a severe blow to the year, in the 2020 operating period. economic and healthcare infrastructure Our Company’s net profit reached Revenue worldwide, the coronavirus also TRY 4.5 billion, up by 33% compared provided great opportunities in spotting to the previous year. With collections the weaknesses of organizations. supported by export revenues, we 16 Significant progress was attained managed to conclude the year with a TRY Billion in healthcare and communication solid cash position. technologies in particular as digital transformation Largest 48th defense company in ASELSAN’s total revenue reached and innovative technologies the world TRY 16 billion as of the end of 2020. were introduced to maintain Spanning 12 countries on three economic and social stability continents with its sales and production in an attempt to address the network, ASELSAN is the world’s limitations arising from the challenges largest 48th defense company. Boasting of the pandemic. this position, the Company reached a record TRY 4 billion of Earnings In a period where the global economy Before Interests, Taxes, Depreciation, contracted by 3.3%, ASELSAN and Amortization (EBITDA), posting a and many other organizations were 38% growth. Meanwhile, the EBITDA tested in terms of their strengths margin went higher than forecasts, and weaknesses when faced with up by 24.4% - which is an all-time extraordinary conditions. Meanwhile, high in ASELSAN’s history. ASELSAN Turkey successfully navigated this maintained its pace in exports in multi-pronged crisis thanks to its solid 2020 when cross-border mobility economic and healthcare infrastructure suffered severe interruption due to the and strong ties to society. COVID-19 pandemic. Our Company commenced sales to six new countries Restrictions aimed at slowing the in 2020, and signed deals worth USD spread of COVID-19 were introduced 446 million in total, injecting momentum in a manner to not interfere with into Turkey’s export volume. With the production processes, while our contribution of new overseas orders, strong healthcare infrastructure the overseas backlog of orders tackled infected patients’ treatment reached over USD 1 billion, an all-time requirements successfully. The mass peak, while our total backlog amounted vaccination campaign that started at to USD 9.5 billion. the beginning of 2021 was a source of great pride for us since it constituted a reference practice for the entire world. 20 ASELSAN Sustainability Report 2020 ASELSAN at a Glance 21
Message from the Chairman, President and CEO
As of the end of 2020, ASELSAN’s R&D spending amounted 40 employees graduated from the ASELSAN Academy Program to a total of TRY 3,356 million, TRY 481 million of which was established to help boost university and industry partnerships funded internally. The Company also filed 175 patents in for the development of national and innovative technologies. 2020, 40 of which were registered during the year. 645 employees continued their post-graduate studies, 575 master’s degree and 70 doctorate students, under the program.
Backed by our values, we take The rising Innovation Center of the worked with resolve towards the talent program of Turkey for the students • In coordination with the Ministry of firmer steps towards the future global defense industry Establishment and Certification of ISO of vocational high schools, our Company National Education, a campaign was Announced by the People As of the end of 2020, ASELSAN’s 50001 Energy Management System, opened doors for 172 young people in initiated to establish three EBA support Management Association of Turkey R&D spending amounted to a total and enhanced energy efficiency the 2020-2021 academic term. points in three villages. Meanwhile, (PERYÖN) as the winner of the of TRY 3,356 million, TRY 481 million considerably while ensuring full 5 thousand tablet computers were “Creating Value in Difficult Times” of which was funded internally. The compliance with laws. We invest in the future of our donated to provide equal opportunity category, ASELSAN presented its new Company also filed 175 patents in country with social responsibility in education, corporate values to its stakeholders in 2020, 40 of which were registered Our human resources focused on projects • Sleeping bags, camping stools, lighting 2020 to take firmer steps towards the during the year. In addition to the continuous development For ASELSAN, it is quite important equipment, and wood heaters were future. “Unity is Our Spirit”; “Trust is Our Turkish Armed Forces, our Company An attraction center for white- and for Turkish Society to be “United” and donated after the earthquake in İzmir. Commitment”; “Development is Our conducts innovative projects to help blue-collar professionals, ASELSAN “Strong.” It is with this understanding EBITDA Goal”; “Excellence is Our Work”; and address the defense requirements continued to introduce human that ASELSAN continued to deliver Backed by our innovative power, we “Innovation is Our Philosophy.” It is in of brotherly countries and allies and resources processes to raise the pioneering social responsibility practices contribute to the bright future ahead the light of these new corporate values has thus remained the destination for quality of business continuity in the via the ASİL Solidarity Foundation set of Turkey 4 that we strive to attain higher ranks on innovative solutions in transportation, 2020 operating period. In parallel with up by volunteering ASELSAN staff in the Since the day it was founded in 1975, TRY Billion “Defense News Top 100 List,” where security, energy, automation, and the goal of attracting qualified Turkish 2020 operating period. Here are some ASELSAN has produced the “Reliable we are currently in 48th place healthcare. professionals overseas to Turkey, of the projects where our employees Technologies “ for the Turkish Defense as of 2020, backed by the ASELSAN initiated the Next Big Move worked with the most heartfelt feelings: Industry. Despite the rather challenging ASELSAN’s total EBITDA reached support of our stakeholders. We observe our environmental to Türkiye Project and made sure • Elazığ-Malatya earthquake aid year of 2020 due to the COVID-19 TRY 4 billion as of the end of 2020. Ranking among the top 10 impact while growing to attract 50 professionals back to campaign; pandemic, ASELSAN continued to “Strongest Brands” in Brand At ASELSAN, we are aware of our Turkey in the past two years. A global • Reconstruction of the demolished raise its net profitability and deliver Finance 2020, ASELSAN environmental responsibilities as a brand in innovations and R&D, our kindergarten in the village of innovative projects. Boasting the greatest effectively manages risks and company with a focus on consistent Company is committed to ranking Kurucaova, district of Doğanşehir, R&D capacity in Turkey, ASELSAN will opportunities, and thus strengthens growth and a confident look to the among the most preferred firms for Malatya, confidently remain a source of pride for its corporate reputation thanks to its future. We take determined steps to professionals in and outside Turkey • Equipment support for healthcare Turkey in the global defense industry sustainability approach. ASELSAN reduce our carbon emissions and in the coming periods. 40 employees employees during the COVID-19 for the years to come. I thank all our continued its supply chain without increase the share of recycled products graduated from the ASELSAN Academy pandemic, stakeholders for supporting ASELSAN’s respite during the COVID-19 pandemic. in use in the light of strategies aimed Program established to help boost • Donations made for the National corporate development journey crowned Tapping into its organizational structure at efficient consumption of natural university and industry partnerships Solidarity Campaign, “We are Self- with new accomplishments in and and qualified human resources that resources. In 2020, our Company was for the development of national and Sufficient Turkey,” outside Turkey. I wish to take pride in quickly adapt to changing conditions, granted the Climate Leader Award innovative technologies. 645 employees • Rations delivered during Ramadan, and celebrate together many other ASELSAN maintains its consistent by CDP (Carbon Disclosure Project) continued their post-graduate studies, • Prior to Eid Al-Adha, some 2,000 achievements to come in the future. growth in an environmentally thanks to our unfaltering steps to fight 575 master’s degree and 70 doctorate children were provided with clothes for responsible manner. global climate change. Meanwhile, students, under the program. “My Eid, Kind regards, consumption of natural resources strength is my country, my profession • Rations distributed to civilians who remained at minimum levels thanks to is my future” is the motto behind suffered the flood that hit the Black Prof. Dr. Haluk GÖRGÜN the Zero Waste Initiative. ASELSAN ASELSAN Technical Generation, i.e. the Sea region, Chairman, President and CEO of ATİK Program. Having prepared the first ASELSAN 22 ASELSAN Sustainability Report 2020 ASELSAN at a Glance 23
Our Key Financial and Operational Indicators
In 2020, ASELSAN’s EBITDA rose to TRY 3.9 billion, up by 38% year-on-year.
Income Statement (TRY Thousand) 2020 2019 Financial Ratios (%) 2020 2019
Revenue 16,104,455 13,012,551 Current Ratio 1.59 1.80
Gross Profit 4,605,015 3,371,733 Asset Turnover 0.54 0.58
Operating Profit (EBIT) 3,641,978 2,612,595 Equity/Assets 0.53 0.53
EBITDA 3,927,476 2,853,811 Fixed Assets/Assets 0.43 0.45
Profit for the Period 4,461,266 3,352,673 Return on Equity 0.28 0.28
Return on Assets 0.15 0.15
Balance Sheet (TRY Thousand) 2020 2019
Total Assets 34,094,229 25,633,044 Profit Margins (%) 2020 2019
Current Assets 19,594,261 13,976,498 Gross Profit 29 26
Total Liabilities 15,996,126 12,064,144 Operating Profit 23 20
Received Order Advances 3,102,114 2,387,584 EBITDA Profit 24 22
Shareholders’ Equity 18,098,103 13,568,899 Profit for the Period 28 26
Operational Cash Flow 1,718,600 976,852 Revenue per Employee (TRY Million) 1.85 1.91
Total Assets Shareholders’ Equity Revenue Return on Equity Return on Assets EBITDA Profit (TRY Billion) (TRY Billion) (TRY Billion) (%) (%) (%)
34.1 18.1 16.1 0.28 0.28 0.15 0.15 24 22
25.6 13.6 13.0
2019 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019 2020 24 ASELSAN Sustainability Report 2020 ASELSAN at a Glance 25
Our Organizational Structure Our Shareholding Structure
ASELSAN has incorporated its visionary management Turkish Armed Forces Foundation owns 74.20% of approach into all the elements of its organizational structure. ASELSAN’s shares.
Our Shareholders Share Amount (TRY) Share Ratio (%)
BOARD OF DIRECTORS Turkish Armed Forces Foundation 1,691,651,248.92 74.20 Free Float (BIST) 588,348,751.08 25.80
Total 2,280,000,0000 100.0
25.80% of ASELSAN shares are traded in Borsa Istanbul.
Planning & Coordination Office of Internal Audit the Board of Directors
Free Float (BIST) CEO 25.80%
Cabinet of the CEO Legal Affairs
Financial Management Vice Presidency Corporate Governance Vice Presidency 100% Supply Chain Management Vice Presidency Technology & Strategy Management Vice Presidency
R&D Management Vice Presidency Business Development & Marketing Vice Presidency
Turkish Armed Forces Foundation 74.20% Transportation, Communications Microelectronics, Radar and Electronic Defense System Security, Energy, and Information Guidance and Warfare Systems Vice Technologies Vice Automation and Technologies Vice Electro-Optics Vice Presidency Presidency Healthcare Systems Presidency Presidency Vice Presidency 26 ASELSAN Sustainability Report 2020 ASELSAN at a Glance 27
Mission and Vision
Mission By focusing primarily on the needs of the Turkish Armed Forces; to provide high value added, innovative, and reliable products, and solutions to both local and foreign customers in the fields of electronic technologies and system integration; continuing activities in line with global targets as well as increasing brand awareness and contributing to the technological independence of Turkey and becoming a defense company that makes the Turkish nation proud.
Vision To be a reliable, competitively preferred, environment-friendly, and human-conscious technology firm, which preserves its sustainable growth in the global market via the values created for stakeholders, as well as serving its national purpose in establishment. 28 ASELSAN Sustainability Report 2020 ASELSAN at a Glance 29
Awards ASELSAN awarded for the ‘Most Valuable Corporate Response’ by Stevie Awards Working rigorously since the outbreak of the COVID-19 pandemic, ASELSAN Having maintained its sustainable success curve, won the Silver Award at the Stevie International Business Awards for ASELSAN was granted numerous awards in 2020. practices that add value to employees and stakeholders. The Company was deemed worthy of the “Most Valuable Corporate Response” award with its projects conducted throughout the COVID-19 pandemic.
ASELSAN was granted innovation awards, as well ASELSAN came in second in the “Innovation Strategy” category of the TİM İnovaLİG Innovation Leaders Awards organized by the Turkish Exporters’ Assembly.
International occupational safety award for ASELSAN ASELSAN has worked to create and maintain a safe and healthy working environment that focuses on employees’ personal development from and develop innovative use cases ASELSAN, the only Turkish company Innovation Awards 2020 its first years onwards. Accordingly, the for swarm intelligence apps that are on Defense News’ TOP 50 list Company has won the “International currently considered game-changers ASELSAN is the only Turkish company Safety Award,” which is one of the in combat environments. Under among the top 50 companies ranking most prestigious awards granted in the the OTAĞ activities, efforts linked on the Defense News’ Top 100 list. The Bronze Award in the Culture & ASELSAN was named a “Climate “Rail Systems” Award for ASELSAN field of occupational safety. with communication and electronic Company is in 48th place as of 2020. Technologies category at the Leader” again Organized by the European Railway warfare, autonomy, modeling, human- Global Council of Corporate ASELSAN won the Climate Leader Clusters Initiation (ERCI) for the sixth “Creating Value in Difficult Times” machine interaction, and sensor fusion ASELSAN CFO Mehmet Fatih Güçlü Universities awards award under the Carbon Disclosure time this year, ERCI Innovation Awards BY PERYÖN disciplines continued throughout the among the Most Influential 50 CFOs ASELSAN’s learning and development Project (CDP), an environmental is intended to evaluate the highlight The People Management Association year. The Use Case of UAV Swarms in Over 1,000 organizations were analyzed in projects launched in pursuit of project with the most trusted rating innovation projects of European railway of Turkey (PERYÖN) announced the the Tactical Field Information Warfare a wide range of areas including financials, development to contribute to its methodology in the world, also in industry players and reward the best winners of the twelfth “Human Value won the grand prize from among over the number of employees, reputation in the employees were granted a Bronze 2020. Of 54 companies that report projects. MİDAS-R ERCI developed by Awards” virtually this year due to the 30 use cases in the contest. sector, and the financial performance and Award in the Culture & Technologies under the Climate Change heading of ASELSAN was nominated for the 2020 COVID-19 pandemic. ASELSAN was achievements of the candidates under the category at the Global Council of CDP Turkey Reporting for 2019, the edition of the ERCI Innovation Awards. granted an award in the newly-added ASELSAN’s Digital Transformation Most Influential 50 CFOs project carried Corporate Universities awards. Company was among five companies With MİDAS-R, ASELSAN was named category of “Creating Value in Difficult was granted an award out in 2020. After evaluations, ASELSAN’s GlobalCCU awards were announced that were entitled to become “Climate the “Best Large Scale Company.” Times.” ASELSAN won this award A joint initiative of Platin Magazine and CFO Mehmet Fatih Güçlü ranked among on the GlobalCCU e-forum held virtually Leaders” thanks to their score of A-. thanks to its projects that create value Ipsos, the “Platin Global 100 Index” the most influential 50 CFOs. on May 5, 2021. Third Place at Prognostic Health and serve as a guide for employees, was themed “digitalization” in the 2020 While the prominent defense industry Management Europe 2020 stakeholders, and society in a period operating period. In the Platin Global ASELSAN among the “Most Attractive ASELSAN won “Big Star” and “Fast leaders in the world lowered their Engin Sirkeci, a member of the staff marked by mounting uncertainties, 100 Awards Ceremony, the Defense Employers” 50” awards CDP (Carbon Disclosure Project) at the Integrated Logistics Support stress, and anxiety due to the Industry Digitalization Award went to ASELSAN was granted two awards in the In Deloitte’s 143rd edition of Technology scores by one level in 2019, ASELSAN Department of ASELSAN’s Defense COVID-19 pandemic. ASELSAN. Corporate Governance “by Business/Commerce Professionals” Fast 50 Turkey, which is held to choose maintained its A- score - a level it Systems Technologies Business Sector Vice President Assoc. Prof. Dr. and “by Engineering/IT Students” Turkey’s fastest-growing technology achieved for the first time in 2018 - and came third at the PHM Europe 20 Data ASELSAN received the grand Hakan Karataş received the award on categories under Universum’s Most companies, ASELSAN was deemed demonstrated the importance it has Challenge. prize at the “Defense Industry behalf of the Company. Head of the Attractive Employers ranking. worthy of awards in Big Star and Fast placed on a sustainable environment Presidency’s Scenario Contest Investment Office of the Presidency of 50 categories. for its stakeholders. for Swarm Intelligence Focus Turkey Ahmet Burak Dağlıoğlu, Minister Two awards for ASELSAN by NCIA Technology Network” of Transportation and Infrastructure Adil ASELSAN’s two project proposals, The Presidency of Defense Industries Karaismailoğlu, and Minister of Trade one in the field of Radar and Electronic (SSB) commenced activities under the Ruhsar Pekcan attended the ceremony Warfare Systems and the other in Swarm Intelligence Focus Technology via video call. Systems Technologies, won the grand Network (OTAĞ) upon the launch prize at the 2020 edition of the “Defense on April 21, 2020. The aim was to Innovation Contest” organized by NATO determine the technology roadmap Communications and Information Agency (NCIA). 30 ASELSAN Sustainability Report 2020 ASELSAN at a Glance 31
Milestones of Our Sustainability Journey In 2020, ATİK (ASELSAN Technical Generation) was rolled out with the motto “My strength is my country, my ASELSAN Vocational and Technical High School, founded profession is my future.” in collaboration with the Ministry of National Education, admitted its first students and commenced education activities in the 2020 operating period.
1980s 2013 • ASELSAN launched a young talents • ASELSAN ranked among the top 2020 program, which currently runs under four employers on the list of “Turkey’s • Upon the successful completion the name Talent-A. The program Most Attractive Companies” of design efforts, the Leadership greatly contributed to ASELSAN’s organized by an international firm. Development School aimed at capability to attract a competent The Company achieved significant boosting ASELSAN managers’ workforce sustainably. Indeed, success by maintaining this trend in leadership capabilities opened. employees who joined the Company 2014, 2015, 2017, 2018, and 2019. • “Gücümüz Bir (Powerful Together)” in the 80s currently serve at the was launched in April 2020 as Senior Management of ASELSAN. 2014 a platform to help ASELSAN • ASELSAN Academy was established communicate with suppliers more 2004 for continuous development of the effectively. • ASELSAN’s first Corporate employees. 2018 • The Zero Waste Project was initiated • ASELSAN became one of the least Governance Principles Compliance • After the launch of the Sustainability • ASELSAN kicked off Employees’ in line with the goal of contributing to affected four defense industry Report was issued. Index of Borsa İstanbul (BIST), Voice Workshops and “Our Future is environmental sustainability. companies in the world owing to numerous activities undertaken by With You” Events. • The Pusula Program was launched the measures taken since the first 2005 ASELSAN for a long period were • ASELSAN Social Innovation Leaders to support new hires with their reported case of the COVID-19 • ASELSAN’s first Corporate reported as part of a Sustainability (ASİL) Platform was established. adaptation to the Company. The Early Detection and pandemic. Governance Committee was Report and published on the • Internally-funded R&D Evaluation • Design efforts were undertaken for Management of Risk • Of 54 companies that report under established. corporate website for the first time. Board was set up. the Leadership Development School Committee was formed at the Climate Change heading of to boost ASELSAN managers’ ASELSAN in 2012. CDP Turkey Reporting for 2019, 2007 2015 2019 leadership capabilities. the Company was among five • ASELSAN’s first document on Ethical • All internal correspondence at • Partnering with the Ministry of • “Our Values” Study was conducted. companies that were entitled to Values and Code of Conduct was ASELSAN, as well as a part of the National Education, the Company • The “Back to Turkey” Project was become “Climate Leaders” thanks to published. external correspondence, were founded the ASELSAN Vocational initiated. their score of A-. moved to the Electronic Document and Technical High School. • ASELSAN Information and • ASELSAN Vocational and Technical 2008 Management System. • ASİL and ASİL Solidarity Foundation Development Platform, a BİL- Anatolian High School, founded in • ASELSAN launched a scholarship were established. GE, was deployed to provide collaboration with the Ministry of program for Ph.D. students with an 2016 • Once the supply system was employees with digital learning tools National Education, admitted its first academic post at universities. • ASELSAN’s Policy on Anti-Bribery transformed, ASELSAN acted and conduct learning and training students and commenced education and Anti-Corruption was released. proactively and improved the activities in a holistic manner via a activities. 2009 value-added supply structure, single system. • ATİK (ASELSAN Technical • In line with ASELSAN’s goal of 2017 supply processes, and supplier • Occupational Safety Information Generation) was rolled out with the reaching excellence in business • ASELSAN Academy Graduate development mechanisms. System (OSIS), which helped run motto “My strength is my country, my processes, OHSAS 18001:2007 Program was launched in partnership • The transition was made from the OHS activities at ASELSAN in a profession is my future.” Occupational Health and Safety with the Higher Education Council OHSAS 18001 Occupational Health standardized manner, was deployed. • A decision was passed to and ISO 14001:2004 Environmental (YÖK). and Safety Management System • The Company was granted an establish an R&D Management Management System certificates • ASELSAN’s Academy Board was certification received in 2009 to the award in the Merit category of Vice Presidency to ensure an were obtained. formed with the participation of ISO 45001 standard. This transition the International Safety Awards effective, efficient, and centralized Gebze Technical University, Middle ranked ASELSAN among the first 2020 organized by the British management of R&D activities, which 2012 East Technical University, Istanbul companies to have deployed this Safety Council which evaluates constitute one of the most important • The Early Detection and Technical University, and Gazi practice in Turkey. occupational health and safety elements of ASELSAN’s mission Management of Risk Committee was University as well as ASELSAN • Business development activities practices conducted in 2019. since its founding. formed at ASELSAN. representatives. at ASELSAN were gathered under • The Techno Adventure Project was • ASELSAN’s first Carbon Disclosure • The National and Local Product the Vice Presidency of Business initiated. Report (CDP) was issued in parallel Development Board was established. Development and Marketing.
with its goal of combatting global climate change. 32 ASELSAN Sustainability Report 2020 Our Future-Driven Sustainability Approach 33
Our Material Sustainability Issues
ASELSAN determines areas for corporate development by taking its material sustainability issues into account.
ECONOMIC Economic Performance Market Presence Indirect Economic Impact
RESOURCE MANAGEMENT Energy Management Water Management Climate Change Management Waste Management Environmental Compliance
SOCIAL Employment Structure Workforce Management Occupational Health and Safety Practices Education and Learning Opportunities Diversity and Equal Opportunities Anti-Discrimination Right of Organization and Collective In addition to the themes addressed within the scope of “corporate transformation,” Bargaining ASELSAN established its priorities for the 2020 Sustainability Report by taking the ASELSAN established Supply Chain Management suggestions and expectations of various stakeholder groups, first and foremost its priorities for the 2020 Safety Practices employees, into account. Addressing these priorities within the framework of GRI’s Sustainability Report by Interaction with Communities (Global Reporting Initiative) 2016 Standards, the Company has established the taking the suggestions and Product and Service Quality Management following priorities in no particular order of importance. expectations of various Technology and Innovation Management stakeholders. Information Systems and Information Security 34 ASELSAN Sustainability Report 2020 Our Future-Driven Sustainability Approach 35
Our Stakeholder Map and Communication Approach
ASELSAN actively encourages the participation of as a channel that conveyed employee platforms including Facebook, Twitter, opinions and suggestions to the senior LinkedIn, Instagram, and YouTube, as management. well as via ASELSAN’s ecosystem made organizations and entities within its stakeholder map in CUSTOMERS of aselsan.com.tr, gucumuzbir.com, and sustainability efforts. Under internal communication teknomacera.com. activities, which serve as a pillar for stakeholder communication at Regarding the ability to address ASELSAN, the Company has carried customers’ demands as the number out active communication with one priority, ASELSAN fulfills its primary employees via intranet and e-mail INVESTORS responsibility for customers by creating in 2020. While focusing on the use added value through R&D activities of a shared language at ASELSAN, and innovation. While offering the the Internal Communications Unit optimum solutions to customers, the supports all other functions in each Company has made it a duty to make a announcement/mailing and design Operating with a focus on creating difference and deliver on all contractual activity. The unit played a key role in sustainable value for capital markets in each obligations promptly and thoroughly. boosting interaction with leaders and period, ASELSAN comes together with ensuring the uninterrupted circulation corporate investors in investor conferences ASELSAN maintains constant of the updates on the COVID-19 and roadshows organized by intermediary coordination with customers pandemic provided by the Chairman, organizations, as well as in “face-to-face” throughout the projects’ lifecycle, as President, and CEO Prof. Dr. Haluk meetings. In 2020, the Investor Relations required by the nature of the sector GÖRGÜN to employees. Department accepted the maximum where it operates. Furthermore, the possible number of meeting requests Company always remains in touch with During the COVID-19 pandemic, from domestic/foreign corporate and retail customers via meetings and e-mail or Chairman, President, and CEO Prof. investors. The majority of investor meetings telephone communications. Dr. Haluk GÖRGÜN sent letters to were held online during the COVID-19 employees’ residential addresses, while pandemic that hit the world in 2020. In total, hygiene kits were delivered to those 95 meetings were held. ASELSAN adopted staff members on administrative leave the principle of replying to the e-mails of who were also updated on in-house corporate and retail investors promptly practices via short text messages. and in detail while briefing them directly via EMPLOYEES phone calls. In this regard, the queries of “Back to Turkey” project was renamed 1,000 retail shareholders were replied to in as “Next Big Move to Türkiye.” The writing or verbally in 2020. project underwent various changes For ASELSAN, experienced and in systemic aspects, and associated It is useful to reply to retail investors’ phone competent human resources are communication activities were planned calls via the Interactive Voice System to an indispensable component of and initiated. Pre-Onboarding and ensure more efficient time management in the Company’s sustainable and Onboarding Processes were developed phone calls with investors and to measure successful performance. In 2020, the and the communication tone renewed. and report their efficiency. This system Company organized numerous events The PUSULA process was revised and enables the Company to receive feedback to hear employees’ expectations enhanced, and personal development from investors, respond to some queries via and suggestions to boost employee and information videos were prepared the interactive voice system menu without motivation and maintain the for the employees who are chosen to having to personally talk with the Investor productivity of human resources. be PUSULA. Announcements were Relations staff, record the calls, and report In the meantime, the HR Business designed for special occasions such as and analyze the data in relation to the calls. Partnership Structure established New Year’s Eve, birthdays, retirement From November 2019 to the end of 2020, in 2019 is now able to respond to dates, anniversaries, and the start of 3,715 calls were received by the system; employees’ expectations in a more school for employees’ children. A “Life” retail investors clicked 377 times on the ASELSAN has included all individuals, objectives, the Company has rapid and prompt manner. “Bring Your segment was launched on LinkedIn. system; 941 retail investors talked directly ASELSAN has included all entities, and companies, who directly or incorporated customers, employees, Coffee and Join Us” was the motto with the Investor Relations specialists, and individuals, entities and indirectly affect, or are affected by the investors, suppliers/subcontractors, behind the series of events held weekly Digital communication channels such retail investors browsed the system 2,398 companies, who directly or Company’s activities, in its stakeholder universities, sectoral organizations, to answer employees’ questions on as social media and websites become times. indirectly affect, or are affected map. Encouraging stakeholder non-governmental organizations, the specific business partnership and a more important tool for stakeholder by the Company’s activities, in participation to achieve its business public institutions, society, and future sector for the week, find out their communication. In this respect, regular its stakeholder map. continuity and operational excellence generations into its stakeholder map. expectations, and help them adopt communications were conducted the HR projects. Staff Representatives with stakeholders of all levels and successfully maintained their activities segments via popular social media 36 ASELSAN Sustainability Report 2020 Our Future-Driven Sustainability Approach 37
Our Stakeholder Map and Communication Approach
OUR MEANS OF COMMUNICATION Corporate Wear Initiative WITH STAKEHOLDERS Support Services Directorate An introductory meeting was PUBLIC ASELSAN places great importance and Industrialization and Supply organized on January 8, 2020, SUPPLIERS UNIVERSITIES INSTITUTIONS on communication and interaction Directorate worked in coordination for the ASELSAN Leadership with internal and external stakeholders with the Corporate Communications Development School to and implements a multi-faceted Department and prepared the address Managers and higher- communication strategy making the Corporate Wear Catalog for ASELSAN. level executives. ASELSAN uses the Supplier Portal for Focusing on continuous development, The majority of ASELSAN’s customers most of the digital transformation With the first phase commencing in communication with suppliers, who ASELSAN develops close corporate are comprised of public institutions. process. The Company has made July 2020, the initiative was completed are among the most important links in cooperation with universities through Therefore, the Company pays utmost it a principle to address the entire upon the Chairman, President and the value chain for the Company. The Internally Funded R&D Projects, the attention to compliance with all ecosystem on digital media. This CEO’s announcement of the catalog Supplier Portal enables the Company Candidate Engineer Program, and the applicable laws and runs business is how it has managed to initiate a to employees on October 19, 2020. to carry out such activities as the ASELSAN Academy program. The processes based on the principles of strategy whereby its stakeholder The first implementation phase began receipt of quotes, management of the Company maintained strong ties to fairness and accountability. Developing communications are driven by following the completion of the catalog. quality process, product procurement, students in 2020. ASELSAN has had close relations with public institutions, sustainability. ASELSAN’s means and training, inspection processes, supplier an active profile at the career fairs of ASELSAN supports the public sector’s frequency of communication with Promotional Products and Gifts scorecard, and announcements. The universities for many years. Accordingly, projects and initiatives in social areas and stakeholders in its impact area are as Catalog platform also enables suppliers to it attends the regional career fairs the defense industry. The Company also follows: The Promotional Products and Gifts be integrated with the supply chain. organized by the Human Resources addresses the public sector’s requests for Catalog was drawn up to introduce Any problem suppliers encounter Office of the Presidency of the Republic information and opinions on the defense Meeting of ASELSAN Leadership the promotional products and gifts on the portal is handled in a prompt of Turkey every year where the paths industry and ASELSAN’s activities. Development School offered to customers during events, and systemic manner, while business of the Company and the potential An introductory meeting was organized visits, tests, acceptance meetings, continuity is guaranteed at all times. ASELSAN employees of the future may on January 8, 2020, for the ASELSAN workshops, and training courses Meanwhile, ASELSAN established a cross. Spurring a great deal of attention Leadership Development School to for the purposes of promoting pioneering and innovative platform for at the Teknofest events held in 2020, address Managers and higher-level ASELSAN and reinforcing stakeholder the purposes of fostering the bond with ASELSAN briefed young individuals of SOCIETY executives. collaboration. The catalog is aimed at suppliers, boosting the effectiveness of all ages on ASELSAN products and supporting the activities carried out localization efforts, reducing Turkey’s career practices when they visited the Our Job is Important Workshop by ASELSAN staff, who produce the reliance on foreign resources, and Company’s booth. The first edition of the workshops Reliable Technologies of the Future, run partnerships under an integrated aimed at job families was held with mostly in challenging conditions. It Contributing to the social, environmental, structure. Named “Gücümüz Bir the Logistics Support Job Family will also help the Company to ensure economic, and cultural development (Powerful Together);” the platform was in coordination with the Corporate effective and efficient use of resources SECTORAL of the Turkish society is among the key launched in April 2020. Furthermore, ORGANIZATIONS Governance Vice Presidency. Themed in planning and distributing customer priorities of ASELSAN, which runs all its the Company comes together with AND NON- “What Kind of a Transformation at ILS,” promotions. activities by upholding its responsibilities existing and potential suppliers GOVERNMENTAL the workshop took place on January for the society. In determining its ways through visits to the industry and trade ORGANIZATIONS 13, 2020, with the participation of The Launch of Values and the of doing business, the Company pays chambers in various provinces. some 250 people working under the ASELSAN Anthem heed to the opinions and suggestions of Integrated Logistics Support job family. The values of ASELSAN were laid ASELSAN injects momentum into the local communities where it operates. down through the activities conducted its corporate development through ASELSAN PLM Project Phase 1 by the Human Resources Directorate. partnerships with all sectoral and non- Project Kick-Off Meeting ASELSAN Values were announced governmental organizations operating On January 14, 2020, the kick-off by ASELSAN’s Chairman, President in the defense industry. A member FUTURE meeting for ASELSAN’s Product and CEO Prof. Dr. Haluk GÖRGÜN of the leading local and international GENERATIONS Lifecycle PLM Project was held with the in a ceremony on February 10, 2020, organizations of the defense industry, participation of project representatives hosting all ASELSAN staff. Singer Kıraç ASELSAN is represented on domestic from the Executive Board, Business sang the ASELSAN anthem for the first and international sectoral platforms by Sector Directorates, and Vice time for ASELSAN staff. the Senior Management and employees. Being the most preferred technology Presidencies. company of the young and successful professionals, ASELSAN never compromises on its goal of leaving a more inhabitable world for future generations. ASELSAN also works with all its might to pass its solid corporate reputation onto future generations. The Company communicates with the youth via various corporate communication channels including Techno Adventure and Alimhane. 38 ASELSAN Sustainability Report 2020 Our Future-Driven Sustainability Approach 39
Our Stakeholder Map and Communication Approach
ASELSAN has adopted a multi-faceted communication Customers Customer Satisfaction Surveys (Every Project) strategy. Website (Constant) Call Center (Constant) Exhibitions in and outside Turkey (A Few Times A Year)
Employees Employee Satisfaction Survey (Once A Year) Employees’ Voice Workshops (When Needed) Surveys on the Working Experience (When Needed)
Investors Analyst Meetings (Twice in a Year) Investor Conferences and Roadshows (A Few Times a Year) Investor Relations Website (Constant) Investor Relations E-Mail Address (Constant) Investor Relations Interactive Voice Response (Constant) Suppliers/Subcontractors Supplier Portal (Constant) Workshops and Training Courses (Constant) “Gücümüz Bir (Powerful Together)” Platform (Constant) Supplier Satisfaction Survey (Periodically) Power Union Summit (Periodically)
Universities ASELSAN Underwater Systems Future Solutions Search REHİS TTEK Conference (Online) Conferences/Panels/Workshops Contest (TEKNOFEST 2020) Conference under the City Security REHİS (Radar and Electronic Warfare (A Few Times A Year) A record number of 376 teams Management System Project Systems) TTEK Conference, a Internally Funded R&D Projects (Constant) ASELSAN Academy (Constant) applied to compete in the Unmanned The Presidency of Defense Industries traditional, annual conference of the Underwater Systems Contest organized (SSB), General Directorate of Police Radar and Electronic Warfare Systems Public Institutions, Sectoral and by ASELSAN to pioneer the future of our (EGM), ASELSAN, and HAVELSAN are Business Sector, was held online this Non-Governmental Organizations country in underwater technologies at the stakeholders of the City Security year on November 7, 2020. Conferences/Panels/Workshops the third edition of TEKNOFEST 2020 Management System Project for which (A Few Times A Year) held in Gaziantep on September 24-27, a three-day search conference was The opening session of the conference Cooperation within the scope of legal regulations 2020. 43 finalist teams showcased organized in Istanbul on March 13-15, hosted 580 invited participants, while (When Needed) their skills with their unmanned vehicles 2020. User needs that might emerge six parallel sessions hosted from 53 to Conferences/Panels/Workshops underwater on the track decorated in coming periods and solutions to 320 attendees throughout the day. (A Few Times A Year) with the Gypsy Girl’s mosaic, which address such needs were determined Society Website (Constant) is a hallmark of Gaziantep. ASELSAN during the conference, which hosted Third ASELSAN Academy Social Media and Press (Constant) is proud to be part of such a great the users from the police departments Workshop (Onsite and Online) Social Responsibility Projects family, namely TEKNOFEST, since the in 81 provinces, as well as the ASELSAN Academy’s Third Workshop (A Few Times A Year) very beginning of the organization that representatives of the Transportation, was held on November 2-4, 2020, and ASİL Solidarity Foundation (Constant) has encouraged the youth for science Security, Energy & Automation Systems hosted by Gazi University. A ceremony and technology and thus turned into a Business Sector. was organized for the closing of the Future Generations prominent brand for Turkey. workshop during which ASELSAN Career Fairs (A Few Times a Year) ASELSAN-DASAL Cooperation Academy presented its first graduates’ Cooperation with the Ministry of National Education Workshop memorable medals for their graduation ASELSAN Vocational and Technical High School TÜBİTAK BİLGEM-ASELSAN Techno Adventure Cooperation Workshop Cooperation opportunities were and awards to accomplished Alimhane Goodwill agreements and discussed with DASAL during the employees in the thesis contest. Teknofest memorandums of understanding ASELSAN-DASAL cooperation were signed between the parties at workshop held in ASELSAN’s Akyurt an auspicious cooperation workshop premises on June 30, 2020. organized at TÜBİTAK’s BİLGEM facilities in Gebze from February 29 to March 1, 2020. 40 ASELSAN Sustainability Report 2020 Our Future-Driven Sustainability Approach 41
Memberships and Initiatives Supported
ASELSAN is a member of and supports 19 domestic and 23 international organizations.
DOMESTIC INTERNATIONAL √ ARUS (Anatolian Rail Transportation √ AOC (The Association of Old Crows √ ONVIF (Open Network Video Systems Cluster) - The Name for People Engaged Interface Forum) √ ATO (Ankara Chamber of in the Profession of Electronic √ OSA (Optical Society of America) Commerce) Warfare) √ PCI-SIG (Peripheral Component √ ASO (Ankara Chamber of Industry) √ AFCEA (Armed Forces Interconnect - Special Interest √ AUSDER (Smart Transportation Communication and Electronics Group) Systems Association) Association) √ RTCA (Radio Technical Commission √ BGD (Information Security √ DMR (Digital Mobile Radio for Aeronautics) Association) Association) √ SPIE (Society of Photo-Optical √ İMMİB (Istanbul Mineral Exporters’ √ DVB (Digital Video Broadcast Instrumentation Engineers) Association) Consortium) Membership √ TETRA Base Station (Critical √ KALDER (Turkish Quality √ EAQG (European Aerospace Communication Association) Association) Quality Group) Membership EENA √ TIA ADVANCING GLOBAL √ OAİB (Central Anatolian Exporters’ (European Emergency Number COMMUNICATIONS Association) Association) (Telecommunications Industry √ RAYDER (Rail Transportation √ EENA (European Emergency Association) Systems and Industrialists Number Association) √ UCAlug (UCA International Users Association) √ ETSI (European Group) √ SAHA İstanbul (Turkish Defense & Telecommunications Standards √ UIIN (University Industry Innovation Aerospace Cluster) Institute) Network) √ SASAD (Defense and Aerospace √ EUROCAE (European Organization √ VITA (VMEBus International Trade Industry Manufacturers Association) for Civil Avionics Equipment) Association) √ SSIB (Association for the Defense √ IEEE (Institute of Electrical and √ WEMPEC (Wisconsin Electrical Industry Exporters Operating under Electronics Engineers) Machines and Power Electronics OAİB) √ FOSA (Fiber Optic Sensing Consortium) √ TAP (Portable Battery Association) Manufacturers and Importers √ IPC (Association of Connecting Association) Electronics Industries) √ TBD (Informatics Association of (Telecommunications Industry Turkey) Association) √ TEDAR (Supply Chain Management √ IRIS (International Railway Association) Membership subject to Standard) approval √ TÜMAKÜDER (All Battery Importers and Manufacturers Association) √ TÜTED (Association of All Telecommunication Businessmen) Corporate Membership √ Turkey Open Source Platform Membership √ UITP (International Association of Public Transport) 42 ASELSAN Sustainability Report 2020 Our Proven Professional Management Approach 43
Corporate Governance
Driven by its listing in 2012 on the Corporate Governance Index of Borsa Istanbul, ASELSAN has maintained its consistent progress in corporate governance processes in 2020.
ASELSAN observes the sensitivities ASELSAN’s management structure of the sector where it operates; never is a single-tier system where the compromises on the principles of General Assembly elects a Board fairness, transparency, accountability, of Directors. ASELSAN’s Board of and responsibility, which are the Directors is composed of 9 members, cornerstones of corporate governance; 3 of them independent. The Board of adds momentum into its consistent Directors has decision-making and growth, and safeguards the interests supervisory roles in the determination of stakeholders. In an attempt to bring and management of economic, its lead on domestic platforms to the environmental, and social impacts as international arena, the Company well as risks and opportunities. The works without respite towards full Board of Directors ensures that the compliance with corporate governance works are performed in an effective principles and legal regulations. and effective manner and comply with ASELSAN bases its processes on a the legislation, Articles of Association, professional corporate governance directives, and policies established. approach and releases a Corporate Governance Principles Compliance The decisions taken by the Board Report every year since 2004. of Directors are executed under the Early Detection and Management Corporate Governance Committee: 9.29 leadership of the CEO of ASELSAN. of Risk Committee: The Corporate Governance Committee Further information on Full compliance with Three committees have been formed ASELSAN’s corporate rating was Consisting of two Board Members, consists of three Board Members ASELSAN’s corporate Corporate Governance to enable the Board of Directors to fully announced as 9.29 in 2020. the Early Detection and Management and the manager of the Investor governance structure, Board Principles execute its duties and responsibilities in of Risk Committee is chaired by Relations Department as per the Members and committees Driven by its listing in 2012 on ASELSAN: an Independent Board Member. regulations of the Capital Markets is provided on the corporate the Corporate Governance The Committee convenes at least Board. The Committee is chaired website. Index of Borsa Istanbul, ASELSAN Audit Committee: six times a year to determine the by an Independent Board Member. manages its corporate governance The committee consists of three Company’s strategic, operational, The Committee submits proposals approach as a continuous and dynamic independent members of the board. financial, and compliance risks and to the Board of Directors to carry process. Improvements made by the The main responsibilities of the to manage the risks identified in line out corporate governance principles Company to this end paved the way committee are to disclose financial with the Company’s corporate risk- compliance and improvement efforts. for the 2020 corporate governance information to the public and monitor taking profile. Principles regarding the The Committee convenes at least four rating of 9.29 out of 10, up from 8.77 the functioning and effectiveness establishment, functioning, meeting times a year, taking the activities of in 2012, as per the evaluation of SAHA, of ASELSAN’s accounting system, and reporting of the committees are set the Investor Relations Department into the corporate governance and credit independent audits, internal audits, and out by the Board of Directors. account. rating company. ASELSAN’s Corporate internal control systems. The Internal Governance Principles Compliance Audit Office reports directly to the Audit Further information on ASELSAN’s Reports are available on the corporate Committee and Members of the Board corporate governance structure, Board website as well as within the annual of Directors. The Audit Committee Members, and committees is provided reports. convenes at least four times a year. on the corporate website. 44 ASELSAN Sustainability Report 2020 Our Proven Professional Management Approach 45
Corporate Governance
Ethical Principles enable ASELSAN to preserve a working ASELSAN’s efforts to boost its competitive edge and cement environment where ASELSAN employees treat one another its position as a global company have brought the importance with kindness, genuineness, tolerance, and respect, and voice of internal audit function to the fore. their opinions open-mindedly.
Committee, which also implements among the topics of evaluations. ETHICAL PRINCIPLES necessary measures in line with the Where a violation of ethics was found, INTERNAL AUDIT information and contributions received infringing parties were either issued ASELSAN’s Ethical Principles, Values, from the Senior Management. a warning by the Ethical Principles Evaluating and improving the and Code of Conduct is reviewed and Committee when deemed sufficient effectiveness of the processes of updated regularly to create working When selecting new hires, utmost or redirected to the Disciplinary corporate governance, enterprise risk environments that comply with ethical attention is paid to choose who are Board or Internal Audit for further management and internal control at principles based on integrity, honesty, willing to comply with ASELSAN’s core disciplinary investigations. In some ASELSAN is ensured via carrying out and work discipline; prevent unethical values and ethical principles. Every new other cases, written notifications on internal audit activities in accordance behavior; raise awareness on ethical member of the ASELSAN family takes potential measures were issued for the with the International Internal Audit values; and align the Company’s an onboarding program whereby they relevant Vice Presidency. Reprimands Standards. The main purpose of practices with ethical principles. go through comprehensive training on in various grades or termination of internal audit activities is to assure ASELSAN’s Ethical Principles, Values the labor contract are implemented the Audit Committee and the Board Ethical Principles enable ASELSAN and Code of Conduct, and ASELSAN’s as disciplinary penalties upon the of Directors that risks are managed to create and preserve a working Directive on Ethical Values. New CEO’s approval if deemed necessary effectively. In this regard, annual audit environment where ASELSAN recruits are also tasked with mandatory by the Disciplinary Board. ASELSAN’s plans and work schedules are prepared employees treat one another with Ethical Principles, Values, and Code Ethical Principles Committee regularly on a risk basis, and audit results are of business processes, reduce costs kindness, genuineness, tolerance, of Conduct; provided a booklet on announces the applications received periodically reported to the Audit appointed to ASELSAN’s Ethical in supply chain management, and and respect, and voice their opinions ethical principles, values, and code of and the evaluations made by the Committee and Board of Directors. Principles Committee to expand the contribute to the progress towards open-mindedly. Thanks to the mutual conduct; and are expected to commit Committee to all ASELSAN employees role of ethical principles in corporate long-term corporate sustainability goals, trust established in the Company, to ethical principles specified in the to raise awareness on ethical principles ASELSAN’s efforts to boost its culture and disseminate the value- such as the use of green technologies. employees act responsibly and look ASELSAN Covenant for Employment. and values. The Ethical Principles competitive edge and cement its driven management approach across after not only their interests but also the Efforts are undertaken to ensure that Committee presents a report at the position as a global company have the Company. In 2020, an audit was conducted on long-term interests of their society, their all ASELSAN employees internalize Board Meeting every year in January brought the importance of this function the activities related to the IT disaster Company, and all the stakeholders. ethical values in an environment regarding its activities, applications to the fore and raised expectations. In ASELSAN uses COSO (The Committee management process. The audit was where they are encouraged to uphold received and evaluations conducted. 2020, planned audit activities, as well of Sponsoring Organizations of the intended to evaluate the effectiveness, Senior Management’s full support these values in their day-to-day work as control tests specifically aimed at Treadway Commission) as a guide to efficiency, and retrievability of business for the enforcement of Ethical and at all times after the onboarding The Committee issues certificates the risks arising from the COVID-19 ensure the effectiveness of the internal processes prone to interruption due to Values period. All ASELSAN employees of appreciation for employees to pandemic, were performed, while control system and to streamline control natural disasters and other reasons. ASELSAN’s Ethical Principles can apply to the Ethical Principles encourage employee behavior that activities aimed at increasing the activities by existing processes and Action plans developed accordingly are Committee is established under the Committee via the Ethical Principles help promote ethical principles and effectiveness of the audit process and functions. Internal Control-Integrated followed by the Company. This audit corporate structure and management Help Desk, while external applications values. Meanwhile, necessary studies strengthening ASELSAN’s corporate Framework Report released by COSO also contributed to the effectiveness system of the Company and consists are received at [email protected]. were completed to send “Glad to Have structure continued. in 2013 sets out five components of of internal controls within the business of seven members. Chaired by the Vice In 2020, 180 applications were filed You” notifications to employees via a sound internal control system at an continuity governance structure President of Corporate Governance, with the Ethical Principles Committee, the “Glad to Have You” app on behalf Effective Internal Audit Tools organization: control environment, to minimize the impact of possible the Committee consists of the and all applications were evaluated of the Committee. Such incentive Internal Audit regularly evaluates risk assessment, control activities, interruptions in IT services and ensure representatives from Internal Audit, and request owners were informed. mechanisms will be launched for active compliance with legal and corporate information and communication, the continuity of critical processes. Supply Chain Management, Legal Applications included reports on use. regulations, the implementation status and monitoring. Reports drawn up Affairs, and Human Resources, and rule violations such as facial masks of ethical principles, and the adequacy by relevant departments in light of On the other hand, the effectiveness two ASELSAN employees who are (due to the pandemic), smoking, and of the controls established to eliminate these principles and a risk-centric of the measures for the risks that the elected with the votes of employees. the parking lot. Resolution of issues risks. Internal auditors, who take part approach are submitted to managers COVID-19 pandemic posed for project All ASELSAN employees are entitled to arising from miscommunication among in these activities at ASELSAN, are and necessary control activities are management processes was evaluated. obtain information from the Committee employees, complaints on mobbing, committed to complying with the performed. Support was provided to initiatives and report any suspected unethical and applications for a permit on Code of Ethics established by the geared towards developing and conduct to the Committee. Unethical engagement outside ASELSAN were Global Institute of Internal Auditors. The internal audit methodology focuses boosting the effectiveness of systems conduct is promptly inspected by the Furthermore, an internal auditor is on improving internal controls on that will help run such processes in processes to increase the efficiency digital environments. 46 ASELSAN Sustainability Report 2020 Our Proven Professional Management Approach 47
Corporate Governance
Internal directives set out preventive actions within the internal control system, while the Internal Audit unit examines bribery and corruption risks in a systemic manner.
In determining the organizations, Employees of ASELSAN, shareholders, COMBATTING BRIBERY & retailers, business partners, and subcontractors, suppliers, consulting CORRUPTION suppliers for contract execution, and audit companies that provide individuals and entities about which services to ASELSAN, all other Prevention of conflicts of interest, there is negative intelligence on bribery stakeholders with whom ASELSAN professional management of relations or corruption, are disqualified. In maintains a commercial and social with stakeholders, and performance of bidding processes, firms determined to relationship, the companies, the joint all legal obligations are the underlying have been involved in acts of corruption ventures and affiliates where ASELSAN values of ASELSAN’s corporate culture. via fraud, promise, threat, the exercise directly or indirectly holds more than Regarding bribery and corruption as of influence, seeking of benefits, 50% of the shares or voting rights. the most dangerous threat to ethical concerted action, extortion, bribery, Employees can access the training values in society, ASELSAN has a and other means are included in the set prepared by the Internal Audit clear description of its relations with blacklist. Furthermore, the Instruction Department aimed at raising their customers and shares its means of on the Selection and Management awareness on the prevention of bribery communication with customers on its of Overseas Representatives defines and corruption via the electronic corporate website. the methods regarding the selection training platform of ASELSAN. of representatives as part of overseas Training at global standards marketing and business development Employees and third parties are All internal auditors at ASELSAN activities, the determination of encouraged to report, without facing take anti-corruption training. Internal remuneration, and the approval any restrictions whatsoever, acts of directives set out preventive actions process. bribery and corruption to ASELSAN’s within the internal control system, while Ethical Principles Committee and the Internal Audit unit examines bribery ASELSAN’s Ethical Principles, Values, contact the committee on all matters and corruption risks in a systemic and Code of Conduct provides a where they suspect unethical conduct. manner. The Unit also carries out clear description of the corporate Following the preliminary investigations inspection activities, if assigned by the approach toward relations with third on the reports submitted, matters that Board of Directors, to have a thorough parties, receiving and offering gifts, contradict ethical principles and pose a investigation of these risks. and individual use and confidentiality of high risk of bribery and corruption are ASELSAN’s resources. Members of the submitted to the Disciplinary Board, ASELSAN’s Anti-Bribery and Anti- Board, employees and their first-degree which then examines the reported Corruption Policy is available in English relatives are prohibited to accept third matter and imposes sanctions if and Turkish and can be found on the parties’ gifts, personal services, or necessary. corporate website. The Anti-Bribery support that might have an influence and Anti-Corruption Policy applies to on ASELSAN’s preferences and the Board Members, Executives, and decisions. Similarly, suppliers are also informed of this matter via a message posted on the website every year. In this message, it is clearly stated that ASELSAN employees do not accept gifts, no matter what the reason is. 48 ASELSAN Sustainability Report 2020 Our Proven Professional Management Approach 49
Risk Management
Risk Ownership Decision Making Risk management at ASELSAN is based on enterprise risk management principles and handled in a holistic and proactive manner to guarantee business continuity. Risk Management Business Capability Processes
Enterprise Risk Management activities the environment, and society, while Board Members and chaired by an at ASELSAN are independent of its results are consolidated and Independent Member of the Board, Business Sectors and performed presented in Risk Bulletins. These the Committee conducts works in by the Enterprise Risk and Process Risk Bulletins are then communicated accordance with the regulations Enterprise Continuous Management Department under to all employees. In addition, Risk of the Capital Markets Board of Risk Management Risk Management Monitoring & the Financial Management Vice Management courses are organized at Turkey. The Committee identifies and Strategy Presidency. ASELSAN’s Enterprise ASELSAN. Risk Management Courses defines ASELSAN’s risk exposure Feedback Risk Management Policy is intended are included in the professional and on- proactively and manages those risks to make sure that necessary action the-job training programs of the entire in accordance with the Company’s is taken and stakeholder interests staff and have been made compulsory. risk-taking approach. In performing are always protected in the face of all At ASELSAN, all employees are these tasks, it fully complies with uncertainties threatening the strategic responsible for Enterprise Risk all applicable regulations, primarily priorities and corporate existence of Management processes. There are including Article 378 of the Turkish the Company. Risk management at targets related to Risk Management in Code of Commerce no. 6102. Risks ASELSAN is based on enterprise risk the Company’s corporate scorecards, that may prevent the Company from Periodical management principles and handled and the results are reflected on reaching its medium and long-term Monitoring in a holistic and proactive manner to performance scores. The fact that the goals are defined and evaluated guarantee business continuity. Company regards these processes by involving the Board Members, as an integral part of the corporate Members of the Early Detection and Enterprise Risk Management activities culture, and that they are fully rolled out Management of Risk Committee, and are carried out with risk management company-wide significantly contributes employees in the process. Policies Committee mechanisms as well as structures to ASELSAN’s sustainability. and action plans are formulated Oversight & such as boards and working groups and implemented for every risk Corporate that encompass the entire Company Comprehensive Risk Management category. Risks have been divided Culture from the Board of Directors to the Policy to the broadest extent possible into employees of functional departments ASELSAN’S Enterprise Risk four categories: Strategic, Financial, in compliance with international Management Policy is intended to Operational, and Compliance Risks. standards. make sure that necessary action is They are managed as part of business taken and stakeholder interests and processes and corporate governance Risk bulletins for employees’ the corporate identity are always and integrated into the Company’s evaluations protected in the face of all uncertainties decision-making mechanisms. Incorporating risk management into threatening the corporate existence corporate culture and raising the of the Company. Within this scope, risk awareness of every employee an Early Detection and Management are among the indispensable steps of Risk Committee was established in towards a successful Enterprise Risk 2012 for the purposes of identifying Management System at ASELSAN. and defining ASELSAN’s risk In this respect, research is carried out exposure proactively and manage on risks pertaining to the Company, those risks in line with the Company’s risk-taking approach. Consisting of
Definition of Risk Risk Analysis Risks Assessment Enterprise Risk Management Process at ASELSAN Risk Management Process Enterprise 50 ASELSAN Sustainability Report 2020 Our Proven Professional Management Approach 51
Risk Management
The impact of the COVID-19 pandemic in and outside ASELSAN was observed, and the World Economic Forum’s Global Risks Report 2020 was taken as a basis under the Enterprise Risk Management efforts.
The risks in ASELSAN’s risk inventory the purposes of evaluating the level are classified and prioritized by their of impact and likelihood of such impact and likelihood, after being risks. Enterprise Risk Management evaluated in terms of time, cost, Coordination Board and Risk Working performance, and reputation. The Groups have been formed to carry out impact of the Company’s risks, activities aimed at placing risks at the which are monitored at the corporate core of operations, defining risks at level, are generally medium level. different levels, and managing these However, the Risk Management risks. System assesses and manages those risks that are perceived as threats The impact of the COVID-19 pandemic to the Company’s sustainability, in and outside ASELSAN was strategic objectives, and stakeholder observed, and the World Economic expectations. As per the Risk Forum’s Global Risks Report 2020 was Management System, necessary taken as a basis under the Enterprise measures and practices are identified Risk Management efforts. Since the first confirmed to minimize the impact and likelihood case of the virus, rigorous of risks. The Board is updated on such Rigorous measures to fight the measures have been defined and prioritized risks through COVID-19 pandemic introduced to minimize the the reports periodically presented by Since the first confirmed case of the impact of the COVID-19 the Early Detection and Management virus, rigorous measures have been pandemic on individuals and of Risk Committee. A report on the introduced to minimize the impact operations. performance of mitigating/preventive of the COVID-19 pandemic on activities for the risks within ASELSAN’s individuals and operations. Measures risk inventory is also drawn up communicated to the public via the and presented by the Committee Sustainability Report 2019 and the periodically to the Board. The Early Company’s website remain in place Detection and Management of Risk and are strictly complied with. While Committee draws up an Annual ASELSAN combatted the COVID-19 Evaluation Report on its activity that pandemic, it continued operations presents its members, the intervals without interruption in the light of the at which it convenes, and the works Company’s vision. The health of every undertaken during a given year to employee, as well as the continuity of provide a basis for the assessment the supply chain, were safeguarded. by the Board. This regular report is Owing to these rigorous practices, According to the Global Risks Report ASELSAN delivered a performance submitted to the Board on a yearly ASELSAN fulfilled all the standards 2020 by the World Economic Forum, above the global and national average basis. The risks in ASELSAN’s as defined by the Turkish Standards ASELSAN discloses to all the headline risks in terms of likelihood and scored A- in 2020. A testimony risk inventory are reviewed by the Institute and became the first defense stakeholders its climate and impact are extreme air pollution to the value ASELSAN attributes to a Committee at least once a year for industry company to be entitled to change risk assessment - one of the paramount risks of our caused by climate change, climate sustainable environment, this score the COVID-19 Safe Production/Safe era - via this report annually. action failure, natural disasters, has helped the Company maintain its Service Certification. biodiversity loss, and human-made position among the prominent defense environmental disasters. Reporting industry leaders of the globe. to CDP successfully since 2010, ASELSAN discloses to all stakeholders its climate change risk assessment - one of the paramount risks of our era - via this report annually. In this field, 52 ASELSAN Sustainability Report 2020 Our Value-Driven Human Resources Approach 53
Our Value-Driven Human Resources Approach The basic principles of ASELSAN As part of ASELSAN’s sustainable Human Resources Management Policy human resources approach, short, are as follows: medium, and long-term sustainability • To accept the employees as a social goals are determined for the ASELSAN updates its Human Resources entity with a personality, to respect development of human resources. ASELSAN their personalities, to protect their These include setting up an internal Values Policy regularly to maintain its strong material and moral rights. trainer system to raise 10, 15, and 20 • To ensure that the authorities and internal trainers within short, medium, employer brand and enhance employee responsibilities are fully determined, and long periods of three, five, and ten and to consider the fit of the years, respectively. Another plan is to experience. characteristics of the task and the increase the number of young talents competencies of the employees. and total training hours delivered to • Creating equal learning and them by15%, 25%, and 50% in short, development opportunities and medium, and long-terms, respectively. designing learning programs Meanwhile, regular risk assessments A cultural transformation activity according to abilities, qualifications are performed and findings reported was carried out in 2019 to define and development areas of ASELSAN to the Risk Committee with regards to ASELSAN’s corporate values and employees. the vulnerabilities within the personal behavioral indicators and to determine • To ensure that the employees are performance management system, the ASELSAN employees’ perception of motivated for high performance. failure to retain qualified/experienced these values. Alongside new projects • To ensure that the workforce plan staff, and the lengthiness of recruitment and practices, the focus for 2020 was is dynamic and meets the strategic processes. to transfer the existing efforts to the needs of the Company. field and collect the deliverables of their • To design a career management Our values stand for our strength implementation. system which allows employees to The values determined as a result of ensure their career development and studies completed in 2019, represents Development is Unity is ASELSAN updates its Human promotion in accordance with their the strength of ASELSAN. A cultural Our Goal Our Spirit Resources Policy regularly to maintain performances. transformation activity was carried its strong employer brand and enhance • To create a peaceful working out to define ASELSAN’s corporate employee experience. ASELSAN’s environment which promotes values and behavioral indicators and main focus areas are to manage creative, constructive, honest, to determine ASELSAN employees’ qualified human resources in full well-intentioned and open perception of these values. In 2020, compliance with applicable laws and communication. efforts were channeled towards regulations governing the working Excellence is • To ensure that appointment, promoting these values. A manifesto Trust is life, provide modern employment Our Work dismissal and evaluation procedures of values was issued and placed Our Commitment and working conditions, encourage are based on objective and and disseminated on all premises to personal development, and boost egalitarian principles, away from contribute to promotion activities. work performance. ASELSAN’s Human personal criteria. Resources Policy is aimed at creating • To encourage employees to express To this end, 49 value ambassadors Innovation is a fair, respectful, and transparent their ideas by activating every were chosen from among volunteering Our Philosophy working environment, and is made up possible communication channel. employees. Value ambassadors of principles based on the Universal • To encourage each employee for play an active role in the promotion Declaration of Human Rights, the improvement and development, as of values together with the Internal Conventions of the International ASELSAN’s Human an individual or team member. Communications Unit. Value Labor Organization (ILO) to which the Resources Policy is aimed • To make employees feel safe ambassadors also voice other Republic of Turkey is a party, and the at creating a fair, respectful, regarding their job security unless employees, expressing their shared Turkish regulations on labor and social and transparent working their behaviors contradict with ethical expectations and wishes, and propose security. environment. rules, general principles and laws. suggestions for development, thereby • To continuously review and revise constantly feeding these values Our Human Resources Management the human resources management and contributing to these efforts Policy is a set of principles which policy, in accordance with the values significantly. creates a fair, respectful and and strategic plans of the Company. transparent working environment.
All employees are responsible for the implementation of the Human Resources Management Policy within the limits of their duties and authorities. 54 ASELSAN Sustainability Report 2020 Our Value-Driven Human Resources Approach 55
Employee Profile
By the end of 2020, the ratio of female employees at By the end of 2020, the average employee age at ASELSAN is 21%. ASELSAN is 33.
21% of the workforce are female Number of Employees in Governance Bodies by Age Group and Gender Number of White Collar Employees by Age Group and Gender employees in the employee breakdown of 2020. The breakdown of a total of 8,807 employees including Talent-A 2019 2020 56% 2019 2020 by gender, age group, and working Age Female Male Female Male 56% of white-collar Age Female Male Female Male category is provided in the following employees at ASELSAN tables. In order to monitor the change <30 - - - - are between the ages of <30 626 1,633 662 1,837 in the workforce along with the 30-50. breakdown of existing employees, 30-50 - 7 - 9 30-50 738 2,156 844 2,506 detailed information on new hires and the number of employees who quit >50 - 11 - 12 >50 44 178 51 162 work in 2020 is also provided in the following tables. Total - 18 - 21 Total 1,408 3,967 1,557 4,505
>50 ages >50 ages 4% 30-50 ages 57% 55%
Number of Employees in Number of White Collar Governance Bodies Employees 30-50 ages 21 people <30 ages 6,062 people 43% 41% 56 ASELSAN Sustainability Report 2020 Our Value-Driven Human Resources Approach 57
Employee Profile
16% of middle-level managers are women. The ratio of In 2020, employee turnover rate at ASELSAN’s women in all managerial positions is 15%. management level was 0.24%.
Number of Blue Collar Employees by Age Group and Gender Total Number of New Hires In 2020, the total turnover rate 2019 2020 for employees aged 30-50 2019 2020 was 1.43%. Age Female Male Female Male Age Female Male Female Male
<30 69 627 79 922 <30 297 924 156 864 30-50 61 259 93 362 30-50 156 1,286 172 1,436 >50 0 12 0 4 >50 9 117 10 126 Total 358 1,195 249 1,230 Total 234 2,030 261 2,484 Total Number of Leaves The average employee age at ASELSAN is 33. It is 45 years of age for managers 7 and higher-level executives. The average seniority of the ASELSAN staff is 7 years. The average seniority of managers and executive staff is 17 years. 16% of middle- 2019 2020 The average seniority of the level managers are women. The ratio of women in all managerial positions is 15%. Age Female Male Female Male ASELSAN staff is 7 years. <30 23 109 28 100 Number of Employees by Contract Type and Gender 30-50 37 117 35 82
Female Male >50 6 54 10 67
Fixed Term Contract - 18 Total 66 280 73 249
Permanent Contract 1,796 6,878 Turnover Ratio (2020) Total 1,796 6,896 Age Group Voluntary (%) Total (%) <30 0.7 0.93 Female Male 30-50 1 1.43 Talent-A 22 93 >50 0.05 0.94
Gender Voluntary (%) Total (%) Male 1.27 2.55 Female 0.48 0.75
Voluntary (%) Total (%) Management Level 0.11 0.24 58 ASELSAN Sustainability Report 2020 Our Value-Driven Human Resources Approach 59
Rights of Employees
The ASELSAN Human Resources Directorate bases ASELSAN continued to communicate with young talents its activities within its remit on diversity and equal during the pandemic period and to participate in online career opportunity. fairs, seminars and panels organized by universities and student societies.
monitored by the Senior Management, A global brand preferred by young Introductory events are organized and SOCIAL DIVERSITY AND EQUAL and related processes are handled RECRUITMENT professionals guidance is provided for high school OPPORTUNITIES by the Ethical Principles Committee Feedback is provided to candidates students to brief them on ASELSAN’s under the Corporate Governance Vice ASELSAN evaluates human resources regarding their applications as promptly fields of activity and help them shape In line with its approach for “decent Presidency consisting of managers and based on objective criteria for the as possible once evaluations are their education with the best possible work,” ASELSAN provides equal employee representatives from different knowledge, skills, and experience completed. ASELSAN provides an approach to become a part of the opportunities to all employees, without functions. If an employee experiences required by any given position. The environment where candidates can ASELSAN family. ASELSAN maintained discriminating against any religion, discrimination for any reason, they are Company aims to acquire candidates easily contact the HR Directorate via communication with young talents language, sex, ethnic origin, age, able to directly report to the ASELSAN who are creative, open to scientific phone or e-mail and obtain detailed during the pandemic and had online disability, sexual orientation, and Ethical Principles Committee with and technological developments, information on their application at any attendance at career exhibitions political opinion. One of ASELSAN’s their privacy being protected. Further committed to ethical values, equipped time they wish. organized by universities, as well as fundamental principles is to treat information on this process is provided with independent thinking skills, and seminars and panels of student clubs. employees, who are the first links in its in the ASELSAN Human Rights Policy competent to act as team players. Having a growing brand value for Such attendance paves the way value chain, without any discrimination available on the corporate website. young talents, ASELSAN attaches for environments where ASELSAN throughout their employment starting ASELSAN runs employment and importance to cooperation with high can be promoted and the impact of from the day of recruitment. While many industries in and outside recruitment processes in light of schools, universities, and student technological progress on the industry Turkey reflect differences arising from universal human rights and standards organizations, in order to further its can be shared with the youth. No act of discrimination based Conducting all its operations in full gender and disability status particularly and based on its position as an equal brand value and place high-potential on religion, language, race, compliance with the laws, ASELSAN on remuneration policies, such a opportunity employer. The ASELSAN young talents in its candidate pool. ethnic origin, gender, age, always adopts the approach of equal practice is inapplicable for ASELSAN’s Human Resources Directorate is disability, sexual orientation opportunity that prevents and bans human resources approach. responsible for the processes related to and political opinion occurred discrimination, as required by the laws. ASELSAN’s remuneration policy is the employment policy. Their activities at ASELSAN in 2020. The ASELSAN Human Resources applied with the same approach and are regularly reported to the Corporate Directorate bases its activities within equally for all employees regardless of Governance Vice Presidency. The its remit on diversity and equal contract type, gender, and disability ASELSAN Recruitment Department is opportunity. Developments in these status. The legally required number in charge of selecting and hiring new areas are reported to the Corporate of disabled individuals permanently candidates. The Department runs Governance Vice Presidency. No act employed in the growing team of a recruitment system designed to of discrimination based on religion, ASELSAN is monitored meticulously. determine the ideal candidate in the language, race, ethnic origin, gender, In 2020, employment was provided fairest manner via utilizing a series of age, disability, sexual orientation, and to an additional 10 disabled people. tools. The system is updated regularly political opinion occurred at ASELSAN Furthermore, the number of female in line with novelties and developments. in 2020. employees who joined ASELSAN in With a focus on ensuring and 2020 is 249. maintaining diversity among its staff, Employment mechanisms for the Company evaluates the candidates women and disabled individuals ASELSAN places great emphasis on who complete the application form There are whistleblowing and reporting employee welfare and well-being in all available on the ASELSAN corporate mechanisms in place at ASELSAN to business processes and activities at its website in recruitment processes. ensure that no employee experiences premises. In order to facilitate life at any Recruitment criteria are also published an act of discrimination due to their given facility, designated parking areas on ASELSAN’s corporate website. differences. The establishment and are allocated for disabled employees at functioning of these mechanisms are car parks, while an elevator is put into service for access from the shuttle area to the facility. 60 ASELSAN Sustainability Report 2020 Our Value-Driven Human Resources Approach 61
Rights of Employees • In 2020, ATİK (ASELSAN Technical Generation) was rolled out with the motto “My strength is my country, my profession is my future.” • ATİK’s aim is to address ASELSAN’s Thanks to the efforts conducted under “Next Big Move need for technicians through a methodological program, emphasize to Türkiye,” 50 professionals turned back to Turkey and the importance of vocational high schools and thus help boost their joined the ASELSAN Family in the past two years. preferability, and support vocational high schoolers in their technical and personal development. • Receiving vocational training at the premises three days a week during their final year at the school, students ASELSAN provides internship and System improvements are ongoing in have the chance to work with In 2020, ATİK (ASELSAN talent programs that enable senior light of user feedback. The aim is to mentors under the talent program. Technical Generation) engineering and economics and select and hire the candidate that fits The program is also planned was rolled out with the administrative sciences students to the position promptly. to assign term projects to ATİK motto “My strength is my work with professionals with expertise • The scope of the “candidate participants, have them take talent country, my profession is my in their respective fields. By examining engineering” program, which has tests, and support them through future” ATİK is designed to the execution of rare scaled projects, been ongoing since the initial years personal development courses. address ASELSAN’s need the students are offered a unique of ASELSAN, was expanded and Meanwhile, on-the-job and technical for technicians through a experience. In addition, ASELSAN continued to be offered under the training will support students in methodological program, launched the ATİK Talent Program in name “Talent-A Program.” The aim acquiring psychomotor and manual emphasize the importance of 2020, which involves practices aimed was to make sure that young talents skills. vocational high schools, and at addressing ASELSAN’s need for develop professional competencies • Throughout the program, a mentor is boost their preferability. technicians with talents raised internally prior to the start of their careers; assigned for each ATİK student, and and thus help boost the preferability of embark upon their professional life students’ development scorecards vocational high schools. Accordingly, with an awareness of the ASELSAN are monitored during the academic the Company welcomes senior culture, and receive one-on-one year. Vocational High School students in mentoring and guidance for their • Under the ATİK program, an those tracks that it needs within its field career development starting from • The intention was to contribute to ASELSAN’s fields of operation, electronic infrastructure was built to of activity. their years at the university. young talents’ technical and personal strategic objectives, and the help monitor ATİK students’ progress • Thanks to the program, all development and attract talents to projects conducted to achieve such and evaluations on the program. 2020 activities of digitalization and candidates get the chance to have ASELSAN at the end of the program. objectives. The automation process for ATİK talent programs further experience in their respective • The Talent-A Program is enhanced • In 2020, the program was renamed students’ Development Scorecard The following activities were sectors through the projects with an assessment platform aimed “Next Big Move to Türkiye.” A and Mentor Evaluation is ongoing to undertaken for digitalization in 2020: assigned to them, while working at feedback to guarantee the preliminary application form was integrate them into the system. one on one with their mentors and development of mentors and “A” launched to enable quick and simple • The content and visual layout on receiving constant feedback. talents alike. filing of applications on the renewed ASELSAN’s Job Application Screen • Introduced as a maiden practice • An electronic infrastructure was website of “Next Big Move to were revised; the new interface was in 2020, Reverse Mentoring developed for those “A” Talents to Türkiye.” deployed. processes were integrated into evaluate the recruitment and Talent • A new infrastructure was also • The Candidate Search Screen was the program to help the Company A-Reverse Mentoring processes and designed to monitor the applications enhanced and launched in a manner make the most of young talents’ submit and manage surveys. The filed and handle the selection and to provide benefits and address knowledge and perspective; enhance infrastructure enabled the automatic recruitment processes. The new existing needs. communications, and transform submission of surveys. infrastructure is intended to display • Internal apps that are currently being generational differences into a • An interface where the results of candidates’ resumes, redirect them used for recruitment processes were mutually beneficial concept rather Mentor and Talent A evaluations can to vacant positions that match gathered on the new Recruitment than a hurdle. A communication be reported electronically has been their professional experience and Portal to increase user-friendliness process was established to bring designed and launched. interests, and make sure that instant and effectiveness. Enhancements on together Talent A staff and mentors, • Back to Turkey had been in place reporting requests are handled by the relevant page were completed help them exchange ideas and as an overarching project that the system once deployed. substantially as of the end of 2020 create synergies. Unlike the Talent A involved efforts to develop and • Thanks to the efforts conducted and rolled out in January 2021. This mentoring process, it was the Talent further improve the existing qualified under “Next Big Move to Türkiye,” 50 portal is intended to simplify and A staff of the Company who acted ‘brains’ in Turkey and to attract professionals turned back to Turkey facilitate all hiring and recruitment as mentors and shared their current equally qualified Turkish citizens and joined the ASELSAN Family in processes for candidates who filed experiences and ideas on how to overseas back to Turkey in line with the past two years. applications to ASELSAN and will adapt ways of doing business to be assessed for vacant positions. changing conditions. 62 ASELSAN Sustainability Report 2020 Our Value-Driven Human Resources Approach 63
Rights of Employees Applications upon internal mutually determined in alignment with Dynamic performance announcements for rotations corporate goals. The most important management processes In the meantime, ASELSAN aims to gains with the new system included Under this revamped performance develop employees’ competencies by a performance assessment based development and feedback system, helping them gain further experience on clear, objective, and measurable ASELSAN intends to encourage The “ASELSAN Development Center” was founded to through rotations between different goals, and a focus on continuous and motivate employees to achieve functions in line with their career development through regular feedback together. Employee performance is contribute to employee development under the ASELSAN development. The internal rotation meetings between managers and assessed by their first-line managers process was re-designed to achieve employees. as well as by their co-workers and Talent Management Model. this goal in 2019, and it now allows internal customers. Employees’ final employees to apply and be assessed The outcomes of the Performance performance assessment consists for applicable positions in coordination Development and Feedback System of an assessment by their respective with the Human Resources Directorate. serve as a basis for employees’ career manager of the goals assigned to Aiming to place the right candidate management, remuneration, and them; an assessment by co-workers who has the right competencies for the rewarding processes. Accordingly, on their contribution to the projects ASELSAN Development Center was position, the system has enabled the high-performers pursue enriched mutually conducted; the realization PERFORMANCE DEVELOPMENT, founded The “ASELSAN Development Company to tackle rotations among career plans, while underperformers ratio of the goals assigned to their CAREER AND TALENT The “ASELSAN Development Center” functions, use internal resources more are channeled towards areas where department as well as the realization Center” was founded to MANAGEMENT contribute to employee was founded to contribute to employee efficiently to address the skill gap in they can prove more beneficial. ratio of the goals assigned to the development under the development under the ASELSAN certain areas, and assess employees’ broader organizational function under ASELSAN Talent Management TALENT MANAGEMENT Talent Management Model. Employees and managers’ requests in coordination which they work. Model. As a leader in the labor market, were evaluated as per certain with the Human Resources. ASELSAN strives to support competencies during development employees’ development at all times, center practices. Following Continuous development number because it is aware that qualified development center practices, one priority human resources are the driving force feedback meetings were held first Believing that corporate achievements behind the Company. with the employees, then with their are possible only through employees’ managers, to discuss any development personal development and success, Career development planning actions that could be taken. In 2021, ASELSAN encourages employees began the ASELSAN Development Center for continuous development, and ASELSAN Talent Management Model practices are planned to assess the monitors, plans, and manages their introduced in 2020 is designed to competencies of those employees on development performance. Within this accompany employees’ on their technical or managerial career paths. scope, Employee Satisfaction Surveys, career journeys. Accordingly, the Employees’ Voice Workshops, one- Career Development Planning process CAREER MANAGEMENT on-one meetings organized by the helps employees recognize their Human Resources Directorate, and knowledge, skills, potential, and Manager appointment made online employee feedback at exit interviews competencies; identify the necessary The process of the manager have all been evaluated to determine steps towards their career goals; appointment system was re-structured the effectiveness of the performance and take necessary action in this in 2019 and turned into a faster assessment system, which have been process. These development actions process that is run virtually with all in use since 2016, and to identify have been monitored throughout the its phases in 2020. This enabled the the problems in the functioning of year in collaboration with managers, Company to appoint new leaders who the system. Evaluations and findings who are indispensable players on completed the process successfully showed that an update to the existing a development journey. Career for managerial positions that play a system in line with the requirements of Development Planning has contributed significant role in ASELSAN’s business ASELSAN was necessary. to employee development and results during the pandemic as well. supported the Company in creating a Utmost care was taken to provide The “Performance Development sustainable organization. equal opportunities for all employees, and Feedback System,” which while all candidate managers applying was revamped in the 2020 for vacant managerial positions were operating period, is designed to assessed in technical and managerial strengthen goal-based performance terms on the virtual environment. management and feedback culture. Candidates were also assessed at the Accordingly, consulting services were Senior Management level at ASELSAN, received from a firm experienced and their leadership skills were in this field to deal with goal and considered in light of the development performance management more center practices. Candidates were efficiently and swiftly. Workshops provided with feedback on their areas for the Dissemination of Goals were for improvement in their competencies organized with the participation of to contribute to their career the management team. The goals development paths. for all organizational units have been 64 ASELSAN Sustainability Report 2020 Our Value-Driven Human Resources Approach 65
Rights of Employees
The remuneration policy at ASELSAN is based on the principle of “equal pay for equal work” in all premises and business lines and implemented without any discrimination of contract type, gender, or disability status.
projects designated by the Company. REMUNERATION AND FRINGE ASELSAN’s remuneration policy is not Under the “Talent-A Program,” BENEFITS which enables university based on minimum wage. Indeed, students’ participation at only the university students who work, senior students are ASELSAN places great emphasis on work at ASELSAN under the Talent-A able to work part-time at the value the qualified workforce adds Program get minimum wage. They ASELSAN and get involved in to the Company. For this value to be are given the chance to switch to the projects designated by the sustainable in the coming periods, full-time work if they complete the Company. ASELSAN’s remuneration policy program successfully and graduate provides better conditions and benefits from the university, and get paid as per than the market average and focuses the existing remuneration policies at EMPLOYEE DEVELOPMENT To guarantee that ASELSAN’s value- on continuous development and job ASELSAN. The learning and development AND ON-THE-JOB TRAINING creating design and development satisfaction. system at ASELSAN is OPPORTUNITIES activities are beneficial, the Company A “job grading” study was conducted continuously improved invests in the learning and development The remuneration policy at ASELSAN in 2020 for all the positions under through measuring and of employees, which contributes to ASELSAN believes that development is based on the principle of “equal the existing main job family/sub-job reporting the impact of the employee satisfaction and brings along is the key driver for reaching strategic pay for equal work” in all premises family at ASELSAN ensuring that the relevant activity on business a highly motivated group of employees results. objectives and success. Being aware and business lines and implemented requirements of the remuneration who fully embrace the corporate that successful employees mean a without any discrimination of contract policy, fringe benefits, and bonus culture. Life-long learning opportunities successful Company, ASELSAN carries type, gender, or disability status. systems were identified. for employees are aimed at both their out rigorous activities to encourage personal and corporate development. employee development. ASELSAN The remuneration policy is maintained Employees who retire from ASELSAN organizes various personal and by taking into account the market are granted severance pay in The learning and development system professional training and development research on wages carried out proportion to their duration of service at ASELSAN is continuously improved activities for continuous employee annually to monitor the economic as stipulated by law. In addition to through measuring and reporting development, with a focus on always indicators of the country, ASELSAN’s mandatory compensations, gifts are the impact of the relevant activity building on its intellectual capital. financial results, and the labor market given to retired personnel as a token on business results. Accordingly, developments. of appreciation for their contributions Catalogues on Learning and Learning and development activities to ASELSAN. Retired employees Development Programs are prepared are run in compliance with ASELSAN’s Comprehensive social benefits for are eligible for the comprehensive and updated as necessary. Training strategies and continuously improved all employees health insurance ASELSAN offers to programs provided to ASELSAN to help boost ASELSAN employees’ In addition to the competitive employees, provided they pay the employees include courses delivered competencies. Carried out under the remuneration system, ASELSAN premiums themselves. by ASELSAN trainers, courses oversight of the Human Resources provides private health insurance, organized by the Learning and Directorate, these activities are life insurance, infirmary services, Employees who retire from or quit Development Operations Department intended to support ASELSAN’s day nursery, graduate education ASELSAN due to age limit are able to and delivered by consulting firms or corporate objectives and strategies, opportunities, and the right to more transfer their experience to ASELSAN academics, and individual training enable personal and organizational leave rights than stipulated by laws. as consultants, if needed and for programs employees take at either learning and development, boost a limited period of time. Besides various companies or universities. employees’ competencies and Under the “Talent-A Program,” consulting opportunities, such former performance, encourage the exchange which enables university students’ employees are also able to continue of information, and enrich the participation at work, senior students their careers within the ecosystem of intellectual capital of the Company. are able to work part-time at numerous organizations of all sizes ASELSAN and get involved in the ASELSAN cooperates with. 66 ASELSAN Sustainability Report 2020 Our Value-Driven Human Resources Approach 67
Rights of Employees The Leadership Development School, aimed at the development of competencies Although training hours seem to have dropped due to the for ASELSAN leaders to help reach the Company’s strategic inability to hold face-to-face courses during the pandemic, goals, opened in 2020. digital training sessions still contributed to employee development. Learning Management System ASELSAN launched “a BİL-GE” in 2019 as a Learning and Development Platform intended to manage, Pursuing its commitment to development, ASELSAN supported life-long learning document, monitor, measure, and Pursuing its commitment and contributed to the development of employees’ potential in 2020. The following report learning and development to development, ASELSAN tables provide details on the average duration of training courses organized in 2020 activities on a single system in a holistic supported life-long learning per employee, by employment category, gender and age. Although training hours manner; provide courses ASELSAN and contributed to the seem to have dropped due to the inability to hold face-to-face courses during the employees need on e-learning development of employees’ pandemic, digital training sessions still contributed to employee development. The platforms and help employees potential in 2020. hours in training per employee comply with the breakdown of employees. access information on learning and development easily. The platform Employees’ Average Hours in Training was made accessible for online and mobile channels in April 2020 during the COVID-19 pandemic to support 2019 2020 employees and help them continue Female Male Female Male their development. The Company shifted its focus to digital training and Blue Collar 21.9 19.3 15.2 14.4 live classroom events in learning and White Collar 23.5 22.6 14.5 12.8 development methods as face-to- face courses were suspended. Digital Senior Management 0 5.3 0 20.8 content on a BİL-GE was diversified, (Executive Board) and an Information Exchange Program
was introduced to enrich development Employees’ Total Hours in Training programs. Under the Information Exchange Program, the content created by employees aspiring to share 2019 2020 Leadership Development School Erasmus+ accreditation application their knowledge and experience with opened accepted Female Male Female Male all ASELSAN staff, as well as video- The Leadership Development ASELSAN’s application for an Blue Collar 5,135 39,156 3,934 36,378 based courses from experts of their School, aimed at the development of Erasmus+ accreditation in professional respective fields were shared with all White Collar 33,054 89,477 22,901 58,301 competencies for ASELSAN leaders training was accepted in 2020. The employees on the a BİL-GE platform. to help reach the Company’s strategic program will enable ASELSAN staff Senior Management 0 53 0 187 Within this scope, 164 information goals, opened in 2020. The program to attend activities organized abroad (Executive Board) exchange videos aired on the a BİL-GE is based on a multi-dimensional in their professional fields and thus platform with the number of views learning and development model develop their capabilities and skills. The Employees’ average hours in training by age with the exception of compulsory reaching over 130,000. Over 85% of involving the use of tools such as the Erasmus+ accreditation for professional courses are as follows: employees completed at least one implementation of a 360° personality training learners’ and staff’s mobility non-compulsory course on a BİL-GE. inventory and reporting its results; face- allows participating organizations to Orientation training and introduction of to-face training modules, preliminary take place in the Erasmus+ program Age Range 2020 facilities under compulsory sessions, preparations for training modules, for longer terms and receive grants for <30 ages 11 Occupational Health and Safety and reinforcement tasks in between mobility activities on a regular basis. courses, as well as the process training 30-40 ages 14.75 modules; coaching meetings as well as of Business Sectors, were moved Action Learning Teams (ALTs). 41-50 ages 15.9 to the a BİL-GE platform and made available for employees. As part of >50 ages 16.37 orientation, personal development courses aimed at new hires were Managers at middle and higher levels have received 28 hours of training on average delivered digitally. in 2020.
Training courses organized include 78,968 hours of technical courses, 42,733 hours of awareness-raising, and personal development courses. 68 ASELSAN Sustainability Report 2020 Our Value-Driven Human Resources Approach 69
Rights of Employees and Applied Sciences of partner universities. At the end of the program, the students receive the M.Sc. or Ph.D. degree of their respective universities.
The ASELSAN Academy Graduate Education Program The program is mainly intended to allow ASELSAN’s personnel to take was brought into service following the protocol signed classes on the topics associated with the projects assigned to them at between the Higher Education Board (YÖK) and ASELSAN ASELSAN, thus helping them complete their thesis studies in these fields. on August 1, 2017. Assigning employees with an academic perspective in R&D projects, the development of innovative technologies in the defense industry, and the single program and even to establish nationalization of critical technologies partnerships between universities. This gain momentum. feature marks ASELSAN Academy as the first model implemented for such An innovative approach for Turkey the program will allow academically- departments and evaluated as to a purpose in and outside Turkey. As of The program is also intended to foster equipped ASELSAN employees to whether they can be regarded as the 2020-2021 Fall Term, 645 students collaboration between universities and take part in technology projects in potential, future employees. Students of - 70 Ph.D. and 575 M.Sc. - carry on the industry, providing an environment the defense industry, conduct thesis vocational schools are also provided with their graduate education activities at where each party can undertake studies and hence increase the quality the opportunity of vocational training the ASELSAN Academy. mutual projects. As part of the activities and quantity of ASELSAN’s products between September and June. of the Academy, workshops are and technologies in the long term. The 4th Generation University Model organized with the participation of The Company conducted a 2-week ASELSAN Academy has graduate all universities. The program boosts The plan is to carry out these activities training course in January for gifted programs in Computer Sciences, university-industry partnerships and at the ASELSAN Academy Center, students. The course involved 20 gifted Electrical and Electronics, Mechanical cooperation between universities. The which will feature classrooms, high school students selected by the and Material Engineering with the approach of ASELSAN Academy also conference halls, training laboratories, Ministry of National Education and aimed participation of research universities, allows academics working in different and other necessary infrastructure at at allowing these students to experience Gazi University, Gebze Technical fields and universities to carry out the Macunköy Facility to ensure the defense industry practices first hand, University, Istanbul Technical University, projects together. continuity of this academic program. improving the quality of education, help and Middle East Technical University. them acquire insights and motivation in With the 4th generation university ASELSAN Academy, which was University-Industry partnerships engineering and other areas, and enhance model implemented for the first time established with the mission of ASELSAN increased the number their future contributions to Turkey. in Turkey, ASELSAN aims to generate developing the knowledge of of university collaboration projects innovative solutions that boost its employees within the Company’s through the internally funded R&D Scholarship Programs competitive edge through the thesis field of activity and contributing to the projects and a series of procedures The Company supports students who studies ASELSAN employees carry out applied academic development of launched in 2018. As part of internally- are interested in ASELSAN’s areas on the Company’s ongoing projects. other stakeholders (universities, R&D ASELSAN ACADEMY GRADUATE funded and contracted projects, the of strategic importance. Within this As of the 2020-2021 Fall Term, It also provides the academics of the centers, institutes, etc.), has become a PROGRAM Company worked with 41 universities scope, scholarship programs are 645 students - 70 Ph.D. and universities taking part in the program new and innovative model for Turkey. - 37 in Turkey and 4 abroad - on 128 carried out to boost the knowledge on 575 M.Sc. - carry on their with the opportunity to work at the ASELSAN Academy Graduate projects in 2020. The Company placed new technologies and equip human graduate education activities applied technology infrastructures of The ASELSAN Academy Model Education Program was implemented orders worth USD 5 million in project resources with new capabilities in at the ASELSAN Academy. ASELSAN. enables post-graduate program to increase the number of qualified and costs to universities as part of the R&D the long term. There are scholarships applicants who meet the necessary expert employees and improve know- projects conducted in collaboration available for Turkish academics’ This model marks ASELSAN as the criteria to take classes and carry out how by enabling employees to carry with universities in 2020. doctorate studies in Turkey. In 2020, first and only industrial organization thesis studies on their existing/future out thesis studies on the topics within five people were granted scholarships that serves as an external campus for projects. This is how candidates ASELSAN’s Technology Roadmap. Internship Programs for doctorate and postdoctoral research multiple universities. The model has complete purpose-driven studies as Serving the purpose of raising human activities in Turkey. also enabled ASELSAN employees an extension of their jobs. Launched The ASELSAN Academy Graduate resources in the long-term, internship to continue their graduate education in 2017 as a university-industry Education Program started its activities programs are run in coordination in their respective areas/projects, collaboration effort and expanded with the protocol signed between the with ASELSAN’s Human Resources without having to leave the facilities in the past three years, ASELSAN Council of Higher Education (YÖK) Directorate. Within this scope, 900 to of ASELSAN. The program is run Academy is an important and and ASELSAN in August 2017. The 1,000 higher education students do in accordance with the Graduate innovative platform that is run under ASELSAN Academy model enabled, summer internships at ASELSAN every Education Regulations and rules the umbrella of the Technology and under the coordination of YÖK, more year between June and September. (admission criteria, mandatory courses, Strategy Management Vice Presidency. than one university to take part in Throughout their internships, students program restrictions, etc.) set by Mainly intending to increase the the collaboration model under a are observed by their respective the Graduate Schools of Natural number of qualified human resources, 70 ASELSAN Sustainability Report 2020 Our Value-Driven Human Resources Approach 71
Rights of Employees
ASELSAN Vocational and Technical High School admitted one student each from the first 0.46% and 0.33% percentile of students taking the High School Entrance tests in its first and second years, respectively.
Organizational Development and employees who moved to different Workforce planning at ASELSAN is Data Analytics Initiatives functions within ASELSAN. This helps carried out by considering short- and ASELSAN pursues the vision of understand preferences and trends long-term requirements. As part of acquiring world-class human resources by department or job families, and the workforce planning activities conducted practices and therefore updates the reasons behind them. Absenteeism every year, a broad range of criteria, HR systems in use in line with current ratios are studied to monitor such as the hours of labor planned requirements. For such updates to compliance with annual working by project, types of labor, contract be introduced in the most effective capacities that are normally calculated information, project maturity level, manner, communication channels during workforce planning efforts. In an and project financial size, is applied through which employees can provide attempt to manage the cost of wages on detailed datasets for the projects feedback are open at all times, while to the Company properly, wage budget performed by all operational units. regular data analytics activities are compliance analyses are performed, Short- and long-term projections carried out. and the effective usage of R&D for workforce requirements are set subsidies is constantly monitored. according to these analyses. During the As for data analytics activities, analyses, data of employee satisfaction employee data is analyzed under In addition, advanced analytics are and engagement as provided by ASELSAN Vocational and Technical a select education program co- a series of categories regularly in utilized to perform future simulations existing employees, feedback provided ASELSAN Vocational and High School developed by ASELSAN, the Turkish quarterly periods. The profile of for the workforce composition. Human by employees who left the Company, Technical Anatolian High The school was opened for the Ministry of National Education, and employees who quit is examined; resources management system policies and the ratio of overtime are taken School has educational purpose of raising qualified human the Directorate-General for Vocational contents of the feedback received are updated according to the results into account to further examine the content in two branches: resources for the defense industry. and Technical Training in two tracks: during exit interviews are analyzed, of these simulations. The results of workload. This helps enrich the study “Defense Electronic Systems” To this end, ASELSAN signed a “Defense Electronic Systems” and and, are developed and considered. analyses performed in 2019 were taken with data compiled from different and “Defense Mechanical cooperation protocol with the Turkish “Defense Mechanical Systems.” Systems.” Retention ratios are also examined into account for the Company to focus resources. Efforts carried out are Ministry of National Education and ASELSAN Vocational and Technical to measure the effectiveness of on the recruitment of experienced reported to the Senior Management to Directorate-General for Vocational and High School admitted one student recruitment processes. Recruitments employees in 2020. Such analyses determine ASELSAN’s requirements Technical Training. The school admitted each from the first 0.46% and 0.33% and leaves are analyzed and were repeated in 2020, according for a workforce aligned with strategic its first students in the academic term percentile of students taking the High interpreted together to preserve the to which the mentioned change in objectives. of 2019 - 2020. ASELSAN Vocational School Entrance tests in its first and know-how of qualified and experienced method was determined to be effective and Technical High School offers second years, respectively. employees at ASELSAN. Meanwhile, and a decision was made to continue statistics are analyzed for those the practice. 72 ASELSAN Sustainability Report 2020 Our Value-Driven Human Resources Approach 73
Rights of Employees
Programs and projects were initiated to minimize the negative impact of the COVID-19 pandemic on employees. These also helped strengthen the employer brand thanks to ASELSAN’s values and mission.
INTERNAL COMMUNICATION the week, the Company wished them was planning to be implemented AND EMPLOYEE MOTIVATION “healthy days,” while suggesting solo or in 2020. However, related activities family activities and tips for an efficient gained speed considering the changing time spent together at home on the working conditions and employees’ The COVID-19 pandemic hit the world weekend. concerns and stress due to the in a period when ASELSAN’s values COVID-19 pandemic. This helped the and cultural codes were being re- All managers and higher positions Company launch the app on April 30, visited and determined, and a roadmap were provided information on how to 2020. The app is intended to enable to move the Company forward was communicate with their teams during employees to share their recognition being revised. Due to the nature of the COVID-19 pandemic. and appreciation for one another to ASELSAN’s field of operations, the boost morale and motivation. principle of continuity in national Chairman, CEO and President Prof. Dr. security and the defense industry Haluk GÖRGÜN updated employees İz Bırakanlar Award Ceremony was was upheld. The importance of this on every development as well as the organized online in 2021 for the first matter was considered in continuing decisions taken during the COVID-19 edition of the contest where the top- operations with no interruption. Taking pandemic. ranking staff of 2020 who left a mark this in mind, and backed by the spirit on the Company are selected with of unity, the Company continuously We stood by employees who tested the votes of employees. This contest supported communication with positive for COVID-19 has now turned into a culture for employees who were involved in the ASELSAN managed to fully support ASELSAN. Employee motivation and process via “Gelişim Atölyesi.” Every employees diagnosed with COVID-19. happiness are boosted and their well- The Company works actively to The feedback process measure, decision, and practice DECENT WORKING Such support was not confined to being is preserved thanks to this award ensure and continuously measure Exit interviews are held with the adopted was communicated to CONDITIONS hospital access, or provision of paid ceremony where they can now thank employee engagement. The Employee employees who will quit the Company. employees by the Senior Management. leaves and scanning services. Indeed, it and recognize those people who “left a Satisfaction Survey carried out annually In order to understand the factors that One of the key priorities for ASELSAN was based on personal communication mark” on the Company. measures employees’ engagement drive employees to quit work clearly, Programs and projects were initiated is to achieve business life-private at the Senior Management level. Both and satisfaction with the HR practices. the data received from face-to-face to minimize the negative impact of the life balance and protect the health, President, Chairman and CEO Prof. Dr. “Bring Your Coffee and Join Us” was Meetings are held between employees interviews and surveys are analyzed COVID-19 pandemic on employees. well-being, and working motivation of Haluk GÖRGÜN and Vice President of among the online events organized and managers to run the feedback periodically and reported to the senior These also helped strengthen the employees, who are the most precious Corporate Management Assoc. Prof. on a weekly basis during which HR mechanism effectively. Employee management. ASELSAN works actively employer brand thanks to ASELSAN’s asset of the Company. In order to Dr. Hakan KARATAŞ made regular calls Partners made their best efforts to reply feedback is evaluated and actions, to ensure and continuously measure values and mission. maintain this balance, working hours to infected employees and sent written to employees’ questions meticulously which may contribute to sustainable employee engagement. at ASELSAN are between 07:30 and messages to motivate and support and genuinely. Invitations were achievements, are implemented. The number of internal communication 16:35, equaling 42,5 hours a week. them. June 1, 2020, Monday was consistently sent for employees to grab channels and tools was increased Such an arrangement of working hours when the gradual easing of restrictions a cup of coffee and join these meetings Nursing and assistance leave during the COVID-19 pandemic. New is also intended to minimize the impact started. Except for the staff members in to inform themselves on HR processes introduced communication campaigns were of congestion in rush hours of the risk groups, all employees were greeted and results. Nursing and assistance leave was devised specifically for the period, and mornings and evenings on employees. with the message, “Now, We Are introduced at the beginning of 2020. communications focused on bonding Finishing work early helps employees Complete.” “Welcome back” messages Although physical events to celebrate The Nursing and Assistance Leave in addition to the steps taken by the take time for themselves and their were delivered throughout the day with anniversaries had to be suspended allows employees to take paid leave Company. families. Furthermore, ASELSAN printed and digital materials. due to the COVID-19 pandemic, in cases where a first-degree relative employees are able to work flexibly and no anniversary or special occasion requires care due to an illness or Working in alternating schedules, plan their working hours in line with A “Glad to Have You” app was was missed, and the Company accident. employees who came to the premises their daily priorities. designed to develop a culture of remembered employees. received specially-designed e-mails recognition and appreciation shaped to “welcome back” every week and around ASELSAN values. The app express how the Company was “glad is built on Unity and Trust that are to have them.” Once they got back among ASELSAN values. The app to working from home at the end of 74 ASELSAN Sustainability Report 2020 Our Value-Driven Human Resources Approach 75
Rights of Employees Occupational Health and Safety
ASELSAN considers every individual regardless of their Thanks to its occupational safety performance, ASELSAN language, religion, race, gender, political opinion. was granted the “International Occupational Safety” award, which is one of the most prestigious global awards in the 2020 operating period.
HUMAN RIGHTS Placing human capital at the heart of The Occupational Safety Information ASELSAN uses custom risk analysis its operations and activities, ASELSAN System (OSIS) is in use as a software- methods to identify potential hazards, safeguards the health and safety of based management model aimed their type, severity, and frequency at ASELSAN is well aware that human employees and provides them with a at maximizing compliance with the workplace, and updates these rights and fundamental freedoms safe working environment. Decent and legal requirements, ensuring the analyses regularly. This process is run should be embraced, respected, and safe working conditions provided by integrated operation of the system, in coordination with the employer or protected by the internal stakeholders the Company are designed in light of disseminating OHS practices across employer’s representative, occupational who are an integral part of the legal obligations and the occupational all employees, strengthening the safety specialist, workplace physician, Company. The Company treats every health and safety culture. Utmost impact of OHS communication, an experienced employee of the individual equally, without discriminating attention is paid to occupational storing information properly, and relevant department, and the against differences such as language, health and safety practices in line with close follow-up of efforts in relation to employee’s representative. The findings religion, race, gender, or political the Integrated Management System all the OHS activities. OSIS enables of the analysis are reported to relevant opinion. Every ASELSAN employee is (IMS) policy stipulated by the Senior all occupational health and safety departments. Hazardous situations, expected to respect others’ rights and Management. practices to be managed in a holistic near misses, and dangerous incidents freedoms and be entitled to express manner in the digital environment are determined proactively. The their requests and needs provided Occupational health and safety accessible to all employees. These hierarchy in risk elimination is measure they do not infringe the rights and practices conducted under the practices include risk assessments, at the source, substitution, measure at freedoms of others. Every individual Integrated Management System Policy accident investigations, subcontractor the site, engineering controls, and use is free to maintain their life, freedom, are aimed at eliminating the hazards management, on-site inspections, of personal protective equipment. and personal safety. Within this scope, that might arise from various reasons incident notifications, and management ASELSAN gives its employees the at the workplace, minimizing risks, of non-compliance. High employee awareness on the assurance that they will not face and thus providing a safe working risks of occupational accidents physical or psychological harassment, environment and guaranteeing safety in The Integrated Management All employees are primarily tasked and offensive, inhuman and degrading the premises of the workplace. System ensures that dust, gas, with complying with occupational behavior or punishment; and that if the noise, thermal comfort, and lighting health and safety instructions and contrary occurs, the victims have all Effective audits via Occupational measurements are performed at such reporting occupational accidents, risky their legal and constitutional rights to Health and Safety Councils sites as production, repair, overhaul, situations, and near misses. Employees relief. (OHSCs) construction, and testing, when also have the right to abstain from In managing occupational health and necessary. The aim of this process work in cases where they identify a ILO-compliant working conditions safety (OHS), operational responsibility, is to help designated officers reach life threat as per the Occupational ASELSAN complies with the activities conducted, decisions taken, compliance with the standards in the Health and Safety Law no. 6331. employment rules stipulated by the awareness-raising practices, and the non-compliant working environments Employees of all levels are able to laws and does not evaluate candidates coordination of the aforementioned and thus prevent potential occupational enter hazardous situations/dangerous under 18 - regardless of the position rests with the senior-management diseases and accidents. The root behavior/near misses via the OSIS - in recruitment processes. Practices level Occupational Health and Safety causes of occupational accidents that and thus report these incidents to related to this matter are in full Councils (OHSCs). OHSCs convene occur despite all the aforementioned the Integrated Management Systems compliance with the standards of the regularly to evaluate and pass preventive actions are analyzed and Department. These statutory rights of International Labor Organization (ILO). decisions on occupational health and potential precautions are determined employees are communicated to them safety. by the OHSC. Occupational accidents during occupational health and safety are monitored monthly by calculating courses. the Accident Frequency. The incidents that result in no bodily injury or property damage, also known as “near misses,” are also logged into the OSIS to prevent occupational accidents from occurring in the future. 76 ASELSAN Sustainability Report 2020 Our Value-Driven Human Resources Approach 77
Occupational Health and Safety Under OHS courses, Fundamental, Employee health and safety are IMS Development Stations were Technical, Health, Elective Technical, essential and a core priority not formed under the Business Sectors and Working At Height Courses are only when they are at the physical to make sure occupational safety and delivered to employees as applicable workplace but also when they are on environmental courses were more for the task they perform. The duration duty at the sites outside the workplace. efficient. Employees are delivered At ASELSAN, occupational safety, environment and and frequency of these courses vary In this regard, there are steps available training in these areas at certain depending on the hazard class of the to inform employees and their intervals and their awareness is raised climate change efforts are run in a manner to cover the relevant workplace. Also available via managers on the precautions to be through bilateral communications. the distance learning infrastructure as taken when they have an assignment The entire value chain is taken entire value chain as per the Golden Rules. per legal requirements, these pieces outside their current workplace and into consideration in ASELSAN’s of training are among the matters of to raise awareness on associated occupational health and environmental priority at OHSCs. New hires take risks and rules to be followed. These practices. An introductory film was a two-hour Start of Work Training, steps also include the evaluation prepared for visitors to ASELSAN instructed by an experienced and of occupational safety matters and to inform them on sustainable knowledgeable employee in their necessary actions in relation to the occupational safety and environmental respective department, on the day workflow of assignments outside the practices at ASELSAN, as well as the they start work so as to help protect city and country. During the COVID-19 occupational health and environmental them against the hazards and dangers pandemic, matters employees were rules that are mandatory at ASELSAN’s at the workplace. Furthermore, the expected to pay attention to during premises. The training video for the Basic IMS Book helps new hires their overseas travels, and emergency subcontractor personnel was updated. acquire knowledge about ASELSAN’s action plans were shared with them in occupational safety and environmental brochures. “13th ASELSAN Occupational Health management culture. The book is and Safety Motto Contest” was included in the onboarding kits the ASELSAN strives to meet hygiene organized to establish a robust OHS Human Resources Directorate gives requirements, achieve continuous culture that thrives with employees’ out to all new hires. improvement, help all staff and contributions for its implementation and suppliers regard hygiene as a shared development as a shared responsibility Employee participation in training responsibility, and carry hygiene embraced by all. courses and the validity of courses are practices to the highest level. To this monitored on SAP. The Company also end, Hygiene Councils were formed Employee participation constitutes the organizes planned fire, earthquake, to conduct hygiene inspections at very core of any given practice that evacuation, and chemical leak/ employees’ common use areas ASELSAN carries out. All processes spill drills on an annual basis to help and some of the relevant suppliers’ are evaluated and managed by employees be prepared in the face premises, propose corrective actions taking relevant parties’ opinions and of emergencies, review emergency for hygiene and serve as a guide for expectations into account. “It’s in Your measures, learn about action plans in necessary measures. Hands to Eliminate Risks” is the title of emergencies, and ensure emergency events held regularly to help employees teams develop their intervention skills. Employees are regularly examined by address risks most comprehensively. workplace physicians. Tests requested ASELSAN employees are invited to by workplace physicians are carried out identify a risk that Occupational Safety at the laboratories, delivering free-of- Experts have not yet identified and charge testing services for employees. submit it to the evaluation committee as part of the event which is planned to Employee participation Occupational accidents at ASELSAN be organized again in the second half in training courses and are examined via OSIS by the of 2021. Works are initiated for all risks the validity of courses are workplace physician, occupational after the evaluation, and finalists are monitored on SAP. safety specialist, department manager included in the rewarding program. of the relevant employee, and other associated members of the staff. Root-cause analyses are performed to identify necessary measures and actions to prevent a similar accident from taking place in the future. 78 ASELSAN Sustainability Report 2020 Our Value-Driven Human Resources Approach 79
Occupational Health and Safety
Rising on the spirit of “Unity” which involves every member of the ASELSAN Family, the Company pursues excellence with a focus on development and innovations in its stronger occupational safety culture.
OCCUPATIONAL HEALTH AND System (IMS) Cup is organized to boost Occupational Health Handbook SAFETY MANAGEMENT SYSTEM employees’ participation, contribution At ASELSAN, hazards that may result and motivation and to keep this in occupational accidents are identified spirit fresh and alive throughout the via risk analyses, site analyses, regular Since 2009, the Occupational Health year. Internal/external inspections site observations, site inspections after and Safety Management System is and on-site controls are performed occupational accidents, and periodical implemented at ASELSAN as part of to determine business sectors’ and daily outpatient examinations. The the ISO 45001:2018 Occupational compliance with the designated Company adopts a three-tier approach Health and Safety Management criteria. The best-performing business in managing work-related hazards. This System Standard and in compliance sector is granted the IMS Cup. approach consists of the measures with the terms specified in relevant related to the working environment regulations of the Occupational Health A project was rolled out in 2020 such as a safe space, ventilation, and Safety Law no. 6331. As a result whereby the entire ASELSAN Family separation, distancing, and closed of the efforts undertaken since July contributes to its implementation working; activities that directly pertain 2018 and the external audit performed and development to establish a solid to the employee such as medical by an international certification body occupational safety culture. The checks upon recruitment, periodical in June 2019, the Company made project will involve efforts to measure examinations, daily outpatient a transition to the “ISO 45001:2018 the occupational safety culture as examinations, clinical psychologist Occupational Health and Safety an integral part of the corporate support, hygiene inspections, and Management System” as published culture and introduce actions for regular health courses; and activities by the International Organization for improvement as per the results of such aimed at selecting, encouraging, and Standardization. This certification measurement. The aim is to continue monitoring the use, of PPEs. ranked ASELSAN among the first the project with its phases planned in companies to have adopted the ISO 2021. 45001:2018 Occupational Health and Safety Management System in Rising on the spirit of “Unity” which Turkey, serving as a testimony to the involves every member of the Company’s leading position in OHS ASELSAN Family, the Company practices. pursues excellence with a focus on development and innovations in its ISO 45001 Occupational Health and stronger occupational safety culture. Safety Management System Standard All processes are reviewed within the brings the importance of leadership business plan and all stakeholders take in OHS practices to the fore. To part in related activities since a safe this end, site visits named “Visible working environment is only possible Leadership” were organized at each through working on the safety of each Vice Presidency to get the message process. Prompt action is taken to across that Chairman, CEO and Heads identify and prioritize variables within of Business Sectors (Vice Presidents) our impact area during business lead occupational safety practices. travels with various means of transport and commute to work with shuttles. Active participation of employees at Accordingly, efforts for transition to all levels in the occupational safety the ISO 39001 Road Safety Traffic management system is another theme Management have been initiated and the ISO 45001 Occupational Health completed. and Safety Management System Standard underscores. Within this scope, the Integrated Management 80 ASELSAN Sustainability Report 2020 Our Innovation-Driven Product and Service Approach 81
Product and Service Quality
Designed as per national and international standards, ASELSAN’s Quality Management System is predicated on the understanding that “quality cannot be subsequently injected into a product by way of control; it is developed as a feature of the product at every stage of the process.”
Attributing great value to customer The cycle ensures the following: ASELSAN has a Quality safety and satisfaction, ASELSAN • Resources needed in line with the Management System based boasts a Quality Management System purpose and processes of the on a process approach, the based on the approach that requires system are established and risks effectiveness of which is process efficiency to be continuously and opportunities are determined constantly monitored and monitored and improved. Designed accordingly to meet customer improved. as per national and international expectations and reach the desired standards, ASELSAN’s Quality goals with respect to Company Management System is predicated on policies, the understanding that “quality cannot • Planned operations are implemented, be subsequently injected into a product • Processes and the resulting The definition, functioning, and ASELSAN’s Quality Policies are by way of control; it is developed as a products are monitored, measured, performance of ASELSAN’s Quality presented to stakeholders at the feature of the product at every stage of and reported against the policies, The definition, functioning and Management System were confirmed and corporate website of the Company. the process.” objectives, conditions, and planned performance of ASELSAN’s certified by internal and external audits operations, Quality Management System conducted in 2020. As of 2020, the In order to introduce its products on The “Plan-Do-Check-Act” cycle • Activities are performed to improve were confirmed and certified Company’s compliance with the following civil aviation platforms, ASELSAN also The system involves the systemic performance when deemed by internal and external audits standards and models was verified and undertakes efforts toward: definition, management, and necessary. conducted in 2020. is regularly monitored by accredited • Design Organization Approval (DOA), interaction of processes for the institutions: • European Technical Standard Order Company to reach the goals set in Within this scope, the Company (ETSO), light of ASELSAN’s Quality Policy and analyzed internal and external • ISO 9001:2015 Quality Management • Alternative Design Organization Strategy. Process inputs, outputs, stakeholders’ needs and addressed System, Approval (ADOA) and Production resources, stakeholders, activities, changes and opportunities through: • AS 9100:D Quality Management Organization Approval (POA), association with other processes, risks, • Improving the relations with System: Requirements for Aviation, • DO-178 (Software Considerations opportunities, and interaction with subcontractors/strategic business Space and Defense Industry in Airborne Systems and Equipment one another are defined; and control partners, Organizations, Certification), points for necessary monitoring and • Digitizing processes and process • ISO 13485 Medical Devices: Quality • DO-254 (Design Assurance measurement efforts are established. implementation, Management System, Guidance for Airborne Electronic • Disseminating quality as a • ISO/TS 22163 Railway Applications: Hardware), With the processes and system being component of the corporate culture, Quality Management System, • RTCA DO-278 / EUROCAE ED-109 run in an integrated manner, the and • AQAP 2110 NATO Quality Assurance (Guidelines for Communication, Company is able to promptly spot the • Following and adopting evolving Requirements for Design, Development, Navigation, Surveillance and Air factors causing deviation from planned and changing quality models and and Production, Traffic Management Systems results and internalize a risk-based standards. • AQAP 2210 and AQAP 2310 NATO Software Integrity Assurance) approach aimed at preventing adverse Supplementary Software Quality effects and tapping into opportunities. Assurance Requirements, certifications as per civil aviation This approach is executed in line with • AQAP 2310 NATO Quality Management regulations. the Plan-Do-Check-Act (PDCA) cycle. System Requirements For Aviation, Space And Defense Contractors, • CMMI Capability Maturity Model Integration Level 3, • ISO 17025 General Requirements for the Competence of Testing and Calibration Laboratories, • ISO 10002 Quality Management: Customer Satisfaction, • ISO 20000: 2018 Service Management System. 82 ASELSAN Sustainability Report 2020 Our Innovation-Driven Product and Service Approach 83
Technology and Innovation Activities 7% turnover support for R&D and The Technology Roadmap and Internally funded R&D projects innovation projects Investment Plan for 2021-2025, which ASELSAN allocates 7% of the turnover The Technology Roadmap and was drawn up in 2020, includes originating from the majority of the Investment Plan is prepared as a innovation-driven plans regarding sources for self-funded R&D activities holistic instrument involving various “Instant Innovation Opportunities,” that comprise original designs arising The “ASELSAN Innovation Board” was established in 2020 to planning efforts including product, “Activities to be Implemented at from the evaluation of innovative ideas. knowledge, process, and capacity ASELSAN Entrepreneurship Center,” With the new mechanism established develop an ASELSAN Innovation Management System whereby planning. The plan consists of and “ASELSAN Academy Support in 2018, internally funded R&D projects technology activities for the five-year for Post Graduate Dissertations,” in are initially passed through preliminary innovation contributes to ASELSAN’s sustainable development and period, annual technology acquisition addition to the core technologies of reviews, evaluated by the elected goals, R&D projects and investments ASELSAN. ASELSAN employee reviewers, and operational efficiency. that will be internally funded, and the then implemented upon decisions ASELSAN Academy’s activities and The technology roadmap and on the “R&D Activities Evaluation planned thesis studies in relation to investment plan are based on Committee.” All the internally-funded these projects and technologies. ASELSAN’s extensive technology R&D projects planned are evaluated For ASELSAN, technology is the most ASELSAN addresses innovation by know-how and aligned with by the internally-funded R&D projects ASELSAN adopts the Strategy critical tool to achieve sustainable applying it to the strategy, technologies, The Technology Roadmap and the Company’s dynamics. The Evaluation Committee consisting of Management System as a growth with high-tech, original projects, and requirements for resources Investment Plan is updated every establishment and implementation senior managers who consider the framework that preserves and innovative products, and the while activating all necessary processes to year in light of evolving technologies of the technology roadmap and opinions of reviewers elected from and maintains its sustainable Company does not merely use but implement innovation with its internal and and requirements. Later on, activities investment plan and follow-up of among expert ASELSAN employees. growth. develops technologies. Technological external stakeholders. Accordingly, it ranked undertaken are reported and approved the technological development is a In this respect, around 200 projects development and innovation are second as one of the finalists from among by the Board, with relevant resources good example of a business model are actively maintained as part of ingrained in ASELSAN’s DNA and the 1,236 contesting firms in the Innovation being prioritized within the ASELSAN innovation. The management process which new technologies and products lies in the remit of all employees. At Strategy category of “İnovaLİG” organized budget. Each year, ASELSAN allocates of internally funded R&D projects, are developed as of the end of 2020. ASELSAN, Technological Development by the Turkish Exporters Assembly (TİM) to almost 7% of its turnover for the which constitute the implementation Efforts aimed at running application and Innovation Management are choose the Innovation Leaders of Turkey innovation projects planned as part side of the plan, is an indicator of approvals and peer reviews for the addressed at the senior level, with every year. of the Technology Roadmap and a successful process innovation at internally-funded R&D projects digitally processes being run by the Technology Investment Plan. The Company also ASELSAN. within the organization were finalized and Strategy Management Vice ASELSAN’s Innovation Strategy is focused funds technological investments in in 2020. The digital platform was Presidency in coordination with on implementing all innovations, ranging support of innovations with almost 2% launched in 2021. Business Sectors. from Product, Service, and Process to of its turnover on an annual basis. Organization and Business Model and Innovative steps towards the future from incremental to radical, in a systemic Technological development goals in the ASELSAN adopts the Strategy and sustainable fashion. As part of open technology roadmap and investment Management System as a framework innovation practices, efforts are underway plan are monitored in accordance that preserves and maintains its to organize Innovation contests open to with the internationally recognized sustainable growth. The Innovation external contenders to help ASELSAN definitions for Technology Readiness strategy is integrated with and a have a say in shaping the technological Levels. Performance measurements for component of, the holistic Strategy progress in Turkey as a pioneering company such technological development goals Management System. Although that sets the standards in the market for are directly included in the targets set innovation is a common approach for future technologies. These events will for ASELSAN Vice Presidencies and all companies, ASELSAN distinguishes also contribute to the entrepreneurship ASELSAN’s corporate scorecards and itself by performing innovation works in and technology ecosystem in Turkey. reflected in their performance scores. an organized and systemic manner. Technologies to be focused in line with the objectives of the Company’s strategic plan Since 2019, budget items presented The “ASELSAN Innovation Board” are aligned with ASELSAN’s Technology in the Technology Roadmap and was established in 2020 to develop Roadmap and Investment Plan objectives; Investment Plan were integrated with an ASELSAN Innovation Management technology management activities the budget management module System whereby innovation by Business Sectors are addressed of ASELSAN’s enterprise resource contributes to ASELSAN’s sustainable accordingly. Technologies to be focused planning system and commissioned. development and operational efficiency. on are cascaded down - based on the This allows the Company to manage, Innovation ambassadors received open innovation mindset- to sub-segments report and evaluate multi-faceted training on ISO 56000 Series Innovation with the contributions of customers, data in the technology roadmap and Management System Standards to subcontractors, academic circles, and other investment plan in a systemic manner, develop their competencies in this stakeholders. The technology roadmap and in integration with the Enterprise area. and investment plan, which is updated Resource Planning system. every year, lays out the internally-funded research, development, and innovation projects directly aimed at acquiring these technologies and releasing innovative products while stipulating the technology infrastructure and resources needed to this end. 84 ASELSAN Sustainability Report 2020 Our Innovation-Driven Product and Service Approach 85
Technology and Innovation Activities The NLPDB has performed detailed examinations on some 20,000 products and initiated works for numerous products to date. As a result of these activities, a decision was made to develop and Universities play an active role in the technological areas produce, using local sources, 450 products (which equaled 150 brochures) ASELSAN ventures into. Expert academics actively in the first phase. In 2020, this number rose upon the periodic examinations of participate in these projects with their know-how and the products procured from abroad on an annual basis. 300 technical specification contributions. brochures, covering 300 products, were issued. Preparations were completed for the brochures of over 750 products in 2020. At certain intervals and based Stakeholder collaboration in R&D 6 R&D Centers and 5,263 R&D on their priority, they were presented activities Employees to Clusters, Chambers of Industry and In R&D efforts, ASELSAN works with Every year, ASELSAN allocates a Commerce, and SMEs in launch events all stakeholders based on the principle significant budget for internally-funded and via different communication channels. of collaboration and mutual benefits, R&D projects with six R&D Centers Product development and localization while nurturing and being nurtured certified by the Ministry of Industry and efforts initiated with local manufacturers by the ecosystem it belongs to. This Technology and 5,263 R&D employees offering design capabilities are successfully ecosystem includes ASELSAN’s as of the end of 2020. As the leader of human resources. The number of either internally-funded R&D projects ongoing since September 2018. partner universities in innovative the sector, ASELSAN owes its globally undergraduate and post-graduate at ASELSAN or the incentive programs ideas and projects, research centers, attractive market position to its focus staff at ASELSAN is double that of the aimed at national and domestic product In 2020, localization efforts for 84 product technoparks, technology transfer on R&D and investments in technology, second-place finisher, which proves development. In 2019, “Localization types were finalized thanks to internally- offices, subcontractors, users of such while at the same time maintaining ASELSAN’s distinctive position among Sub-Committees” were established funded R&D projects and the localization technologies and products (primarily its competitive edge and serving the other companies on the list. In addition, in each of the ASELSAN Business activities undertaken with SMEs through including the Turkish Armed Forces), national purpose of its establishment. ASELSAN was a champion in the Sectors. All the materials procured from technical specification brochures. and public authorities - first and following categories: As for the number abroad in recent years were examined Localization of 150 products was finalized foremost the Presidency of Defense In 2020, ASELSAN filed 175 patent of projects implemented at R&D via these committees. The activities of with local companies and the rest was Industries - that provide support applications, of which 40 were Centers, ASELSAN ranked first with the NLPDB and Business Sector Sub- done by ASELSAN through internally- to these projects. The Company’s registered. The R&D Indicators of the 1,300 projects. Committees included the identification funded R&D projects. open innovation mindset, coupled Company are as follows: and prioritization of products planned for with stakeholder participation in its • Top 50 by the Number of Staff localization. Prioritization works involved Order-Based R&D Program with innovative projects, broadens the • Total TRY 3,356 Million R&D Members with Undergraduate and the evaluation of products in terms of TÜBİTAK perspective on technology and helps Spending Postgraduate Levels at the R&D technological hardships, infrastructure As part of Turkey’s local and national 3.4 develop products/systems in line with • TRY 2,875 Million Externally-Funded Center in 2019 requirements, export restrictions, single- product development strategies, TÜBİTAK TRY Billion the needs of target markets. R&D Spending • Top 100 by the Number of Staff at source procurement, performance, and announced the TEYDEB Order-Based • TRY 481 Million Internally-Funded the R&D Center in 2019 cost. The feasibility of development R&D Program and started to receive ASELSAN spent a total of University-industry R&D Spending • Top 100 by the Number of Projects efforts either done by ASELSAN or applications in 2020. Three ASELSAN TRY 3.4 billion on R&D collaboration in internally- Implemented at the R&D Center with subcontractors (universities or projects were accepted and supported in 2020. funded R&D projects ASELSAN’s Firm Stamp on the in 2019 SMEs) was also evaluated. Technical by TÜBİTAK in 2020. The Company plans Universities play an active R&D and innovation rankings of • Top 50 by the Number of Women Specification Brochures were prepared to contribute to Turkey’s domestic and role in the technological areas Turkishtime’s R&D 250 Survey... Employees at the R&D Center for the products intended to be national efforts through filing new projects ASELSAN ventures into. Expert ASELSAN came in second as the in 2019 developed with SMEs. These brochures in the program set to continue in 2021. academics actively participate in these company with the highest R&D • Top 50 by the Number of Utility were shared on ASELSAN’s corporate The projection is to devise plans with projects with their know-how and spending in 2019, as demonstrated Models Obtained at the R&D Center website and made available to potential SMEs for over 20 products. contributions. ASELSAN boasts R&D by Turkishtime’s survey the results in 2019 local suppliers on the “Gücümüz Bir collaboration with a large number of of which were announced in 2020. (Powerful Together)” Platform. The National and local product development universities, technoparks, and research In 2018, the Company topped Studies of the National Local brochures are presented to the defense studies will naturally result in quicker centers, particularly in the technologies Turkishtime’s list of “R&D 250, Turkish Product Development Board industry clusters providing access to access to products as they are based at their nascent stages in terms of Companies with the Highest R&D The National Local Product a broad skill set at the same time and in Turkey, product procurement at technology readiness. The Company Spending” with TRY 2,162,839,458. Development Board (NLPDB) composed of competent companies more affordable costs, and ASELSAN’s continues to encourage further According to the study, ASELSAN established in 2018 for national and with the capability to develop solutions enhanced capability to offer its competitive involvement of all stakeholders in the also topped the List of R&D 250 as local development of the materials for complicated defense projects. quality at more attractive prices in national projects and provide an environment the leader of Turkey with 849 female ASELSAN procures from abroad, Organized Industrial Zones, Chambers and international markets. In addition, of technological development, staff at its R&D center. Boasting 3,695 has intensified its efforts in 2019. The of Commerce, and industrial firms in a these studies will significantly contribute communication, and exchange aimed undergraduate and post-graduate Board devises strategies for national broad portfolio equipped with numerous to SMEs in Turkey in terms of equipping at fostering cooperation between R&D specialists under its roof, the and local product development; competencies are also among those them with new capabilities, products, stakeholders. Company is a champion on the lists prioritizes the products with overseas recipients of the brochures. and product development processes and both in terms of spending and expert procurement restrictions; and works helping them have global sales activities. with universities and SMEs under 86 ASELSAN Sustainability Report 2020 Our Innovation-Driven Product and Service Approach 87
Technology and Innovation Activities The Company continues with the patients suffering from respiratory signal processing techniques that reduce development efforts for medical failure. The need for ventilators grew imaging times for Magnetic Resonance imaging devices including the Mobile sharply all over the world due to the Imaging, Magnetic Particle Imaging Digital X-Ray System and Magnetic COVID-19 pandemic. Ventilators (MPI) as a new imaging method, signal Resonance Imaging System (MRI). became such an urgent need that processing algorithms providing high One of the indispensable elements of ASELSAN’s digital Equipped with a rechargeable battery the global demand for many of precision and specificity, and radar and operated with a motor controller, the components in the device was systems capable of sensing vital signs transformation, the Product Lifecycle Management System is the Mobile X-Ray device is designed for soon impossible to meet. In an remotely. These studies are aimed use where the patient is (e.g. ER, ICU, attempt to prioritize national needs, at helping Turkey attain a position to expected to make the transition in between processes as well field hospital), without having to move governments introduced export bans produce and export medical device the patient. The MR Imaging Device or such restrictions as export permit technologies. as communication between units easier, and reduce the time will help release innovative products requirements for ventilators and via the use of ASELSAN’s design critical components, which made it Two patent applications were filed for lost and product completion times. capabilities related to the defense impossible to procure the device and MPI in 2020, and five patents for this industry such as RFs, antennas, critical components from abroad. In particular technology allow the Company amplifiers, etc. Efforts in this area this climate, ASELSAN partnered with to protect its intellectual property rights are undertaken in collaboration with BAYKAR, ARÇELİK, and BIOSYS and while converting these methods into Bilkent University’s National Magnetic worked intensively to introduce a local products. Experience obtained through a Resonance Research Center (BİLKENT ventilator to Turkey. ASELSAN provided smaller MPI prototype system developed UMRAM). Tapping into the experience tremendous contributions for BIOSYS earlier has also enabled ASELSAN acquired in medical imaging, ASELSAN to improve the hardware and software to initiate an internally-funded R&D also focused on and commenced design of the prototype-level device in project aimed at developing an MPI studies to address the need for a few weeks and to come to a level at system of human size. Another patent AI-driven healthcare systems. In which the device could be produced. application was filed for a new quick addition to medical imaging devices, Furthermore, ASELSAN undertook the simulation method for high-performance ASELSAN considers the opportunities task of local design and production image creating algorithms in the field to partner with competent startups of critical components impossible to of ultrasound and acoustic underwater operating in Turkey’s healthcare procure from abroad. Batch production imaging. Investments have started in ecosystem. ASELSAN builds long- of the resulting ventilator is ongoing, the necessary infrastructure whereby term partnerships with and provides and over 20 thousand ventilators have the developed methods will be validated engineering, quality management, been produced in Turkey without any in prototype systems. Algorithms were branding, and industrialization support reliance on overseas resources. developed and experimental preliminary to, an ecosystem of Turkish companies studies commenced to sense vital signs that have medical device R&D activities ASELSAN Research Center runs remotely. and product development potential to fundamental and practical research develop sustainable business models. on innovative medical imaging and Diagnostic systems are another area signal processing methods. Research ASELSAN has preparations for. The New partnerships for product is ongoing, and intellectual property Company aims to develop diagnostic development is obtained in the fields of advanced kits and devices enabling quick, precise, The first collaboration has started with METSİS, a national defibrillator (cardiac electroshock) manufacturer. The aim is to blend ASELSAN’s engineering, high-tech product development, and quality management capabilities with Product Lifecycle Management New strategic products in METSİS’s know-how on defibrillators, (PLM) activities continued healthcare systems ASELSAN strives to utilize its and to produce innovative and globally successfully in 2020 technological know-how in ASELSAN strives to utilize its ambitious products via the use of local healthcare systems. One of the indispensable elements of technological know-how in healthcare resources. The goal is to release the ASELSAN’s digital transformation, the systems. To this end, it works on first product of this collaboration in Product Lifecycle Management System medical devices that have high export 2021. is expected to make the transition potential, are critical for diagnosis in between processes as well as and treatment processes, and are not ASELSAN’s second partnership in communication between units easier, currently being produced in Turkey. the field of life support systems is and reduce the time lost and product with BIOSYS, which has intensive completion times. While preparing ASELSAN’s activities relating to medical care ventilators (pulmotor). One of ASELSAN for the future, PLM will devices consist of three categories: the most critical devices to support provide the infrastructure for concurrent medical imaging, life support, and vital functions, the ventilator is used engineering, which ensures interactive diagnostic systems. to support the patient’s respiration and productive work in all units from and take over respiratory functions design and production to program when necessary. It is among the vital management and integrated logistics components of the treatment for ICU support. 88 ASELSAN Sustainability Report 2020 Our Innovation-Driven Product and Service Approach 89
Technology and Innovation Activities R&D projects in energy are carried Rail systems Energy systems out in tandem with METU’s KKK Capitalizing on its technological know- As part of renewable energy activities, academics and funded internally with how in the areas of communication, development efforts are undertaken for ASELSAN’s resources. control, cybersecurity, unmanned high-efficiency solar inverters for the use systems, radar, and software & of solar power. ASELSAN also conducts ASELSAN TRNC (ASELSAN Cyprus) conducts R&D activities • Low/Medium Voltage Renewable hardware design, ASELSAN decided internally-funded development activities Energy Control System Project to to develop a “Communication Based for the domestic design of wind turbines in the Kalkanlı Technology Valley (KALTEV) of METU. analyze and solve energy issues Train Control (CBTC) System” for use and power components for capacities in housing units and small-scale at metro lines and thus launched an above MW. facilities internally-funded R&D project. The • “Renewable Energy Micro-Grid works include software and hardware, Unmanned aerial vehicles Development Project” to meet energy concept design, and deployment, and ASELSAN invested in autonomous needs of medium- and large-scale are currently ongoing to develop an aerial vehicle technologies and set facilities with solar and wind power internationally certified yet local CBTC up a big design team while investing • One of the most recent technologies signaling system. in and becoming a partner to a local and cost-effective diagnosis of methods, electrochemical diagnosis in this field, the High Voltage DC company to address dynamic market certain viral or bacterial diseases at technologies, and bio-surface Converter Development Project will Similarly, development efforts for the expectations in a more agile manner. primary care centers (point of care, preparation technologies to enable serve as a building block to ensure European Train Control System, which Combining its advanced miniature decentralized testing), and testing multiple measurements in addition to energy transmission between Turkey will be compliant with the standards of electronics design capabilities with its devices that enable people to test the aforementioned studies. and TRNC. the European Rail Traffic Management know-how on avionics, the Company themselves individually (patient self- System created by the EU, are ongoing develops multi-rotor UAVs, tethered testing). The first step under these While developing the system, the The aim of these projects is to address as an internally-funded R&D project drones, mini unmanned helicopters, efforts involved R&D studies to develop Company received support via the TRNC’s energy issues from a holistic aimed at ensuring uninterrupted border fixed-wing aircraft, and multi-rotor an optics-based diagnostics system use of universities’ and laboratories’ perspective to make the most of crossings. vehicles in nano dimensions. In the capable of diagnosing biological infrastructures in collaboration with renewable energies and develop coming periods, ASELSAN aims to agents. Experience obtained through the local ecosystem. The system will the key building blocks of energy As a result of these activities, introduce its autonomous aerial vehicles these studies helped the Company help easily differentiate diseases that systems through new and domestic ASELSAN signed and started working with such additional high-tech capabilities to develop the prototype for an demonstrate similar symptoms. Any technologies. on the CBTC Signaling System Project as augmented reality and artificial alternative diagnostics system for the disease as specified and formulated for the Istanbul M1 Metro Line. In intelligence, which will cement its position Investment efforts for an SARS-CoV-2 virus in a short span as per the hospital’s requirements will In this respect, talks on R&D addition, the Company took over as the leading company in the sector. Advanced Technology of time, i.e. 8 months, following the be diagnosed through a single sample. collaboration for energy in TRNC the domestic signaling works of the Electromagnetics and outbreak of the COVID-19 pandemic. Cost-effective solutions will also ensure between the TRNC Ministry of M11 metro line for the Istanbul New The ASELSAN Research Center Microwave Laboratory, and Antigens for the SARS-CoV-2 virus much faster diagnostics and help start Economy and Energy, KIB-TEK, METU Airport and Gayrettepe route. Project conducts research projects for sensing Energy Systems Laboratory were identified in the Research Center a treatment path. Northern Cyprus Campus (KKK), and activities are now underway. As part and planning technologies to increase commenced as of the last laboratories at Teknopark Istanbul. ASELSAN began in 2020. of the National EMU Electric Train, the autonomy level of unmanned aerial quarter of 2020. ASELSAN partnered with universities ASELSAN also plans to play an ASELSAN also developed the traction vehicles. Smart control methods are and institutes (Yeditepe University, active role in wearable diagnostic system, as well as the train control and also being developed to increase energy TÜBİTAK MAM GMBE) to study technologies. To this end, the management system, while static and efficiency in unmanned systems and inactive and active SARS-CoV-2 Company has included a diagnostic dynamic testing with the vehicle has introduce more agile maneuvers to viruses. Innovative studies were carried system development project for begun. unmanned aerial vehicles in operations. out by the ASELSAN Research Center continuous blood sugar measurements for automatic imaging of samples via in its technology roadmap. algorithms, analysis of optical images recorded, and rapid acquisition of ASELSAN TRNC R&D activities accurate diagnostics. Various Business ASELSAN TRNC (ASELSAN Cyprus) Sectors contributed in their respective conducts R&D activities in the Kalkanlı areas of specialization to the prototype Technology Valley (KALTEV) of METU. of the device developed, and two The focus area of this Company patent applications were filed to secure is meta-materials and renewable intellectual property rights. energy. Accordingly, critical advanced technology investments have been With the applications having been made in the Northern Cyprus Campus filed to give a start to in-hospital (KKK) of METU. The plan is to proceed clinical tests, the goal is to complete with more comprehensive investments. the certification for the system Investment efforts for an Advanced and use it to identify different Technology Electromagnetics and pathogens. The Company has plans Microwave Laboratory, and Energy to initiate innovative fundamental Systems Laboratory commenced as of and practical research activities on the last quarter of 2020. optical spectroscopy diagnostics 90 ASELSAN Sustainability Report 2020 Our Innovation-Driven Product and Service Approach 91
Technology and Innovation Activities
Having covered a long mile particularly in the field of In 2020, ASELSAN-TÜBİTAK communications, ASELSAN performs the communication and BİLGEM collaboration workshops were organized payloads for Turkey’s first domestic communication and three cooperation agreements were signed. satellite, TÜRKSAT-6A.
Another important activity performed to support civilian aerospace practices is cube satellites. ASELSAT has been the first cube satellite project conducted to this end. This project was intended to improve university- industry partnerships and to tell the history of equipment developed by ASELSAN. Tapping into the experience gained from the ASELSAT project, the Company aims to continue working on cube satellites to deliver cost and calendar-effective satellite development activities for civilian use in meteorology, agriculture, disaster, and emergency management through remote sensing technologies.
A collaboration workshop was organized and three collaboration Satellite/ space activities Having covered a long mile particularly agreements were signed with TÜBİTAK The goal is to launch into orbit ASELSAN undertakes intensive efforts in the field of communications, Bilgem to effectively contribute to and deploy TÜRKSAT-6A in 2022. to transfer its technology capabilities ASELSAN performs the communication Turkey’s economic and strategic and know-how - acquired through the payloads for Turkey’s first domestic development and develop solutions projects implemented to date - to the communication satellite, TÜRKSAT-6A. that complement one another in terms space industry, as well. TÜRKSAT-6A, with Ku-Band, which is of know-how, experience, expertise, the communication payload developed, and infrastructure. Led by ASELSAN, Accordingly, desired skill acquisition is planned to serve many civilian users. “Efforts for the Graphene and 2D will broadly include the fields of sub- The goal is to launch into orbit and Materials Focus Technology Network systems for communication between deploy TÜRKSAT-6A in 2022. Roadmap” under the auspices of payloads for all missions in space the Presidency of Defense Industries (satellite-Earth and satellite-satellite A new contract was signed with (SSB) were launched. Afterward, focus communications); fixed and portable TÜRKSAT, according to which working groups and workshop result Earth station solutions for observation ASELSAN will develop Ka-Band HUB meetings were organized. The goal for satellites; satellite communication and a Modem system. This is an 2021 is to report the deliverables of this terminals capable of missions at important project involving the provision study, which has been ongoing under different frequencies on all land, air, and of Internet services to all civilian users. the auspices of Presidency for Defense sea platforms. Industries for over one year with the broad participation of universities, enterprises, military personnel, and public institutions. 92 ASELSAN Sustainability Report 2020 Our Innovation-Driven Product and Service Approach 93
Information Systems and Information Security DAG, namely Data Access Governance, was adopted in 2020 to strengthen corporate memory and govern the access to unstructured data as a In 2020, ASELSAN shaped activities related to information significant source of information for organizations. systems security based on the principle of full compliance with Meanwhile, the Cyber Security the Personal Data Protection Law (KVKK). Operations Center, where security monitoring, response, and hardening efforts are integrated, continued its work in 2020. An open-source platform was put to use to provide file integrity control, application vulnerability control, and CIS scoring capabilities for critical The year 2020 was marked by In addition to such specific systems, servers. The center performs regular extraordinary conditions as the information systems management At ASELSAN, information penetration tests and exercises on IT COVID-19 pandemic not only hit in human, process, and technology systems management systems to ensure security controls are Turkey but battered the globe and dimensions is addressed in line with in human, process and continuously improved. Similarly, security organizations had either stalled or the objectives for information security, technology dimensions is configurations are regularly tested in addressed in line with the suspended operations. Faced with business continuity, and efficiency in Document and its annexes. The Pursuant to the Business terms of current threats with the attack objectives for information the pandemic, ASELSAN took a firm business processes at ASELSAN. procedures and principles applied Continuity Policy: vector simulator deployed in this period security, business continuity stance to ensure that “ASELSAN The Company’s approach toward to the protection of personal data “As a leading player in the global for improvement purposes. and efficiency in business would in no way stop.” In a manner to information systems management is at ASELSAN are regulated by the defense industry, ASELSAN regards processes. support this position, the Information based on: “ASELSAN Policy on the Protection the effective and uninterrupted At ASELSAN, business-critical data is Management Directorate promptly • The ISO 27001 Information Security and Processing of Personal Data and performance of the activities linked safely kept and continuously backed introduced new practices focused Management System Standard for ASELSAN Policy on the Retention with its IT services and products a top up at data centers located in different on continuity, security, digital information security; and Disposal of Personal Data,” priority. ASELSAN is committed to facilities. The simultaneous duplication transformation, and efficiency/savings. • ISO 22301 Business Continuity and announced on the website of complying with world-class standards, of corporate data in disaster recovery Information systems continued to Management System Standard for ASELSAN with Turkish and English applicable laws, and contractual centers allows the Company to recover deliver services in the light of these business continuity; texts. requirements, and continuously critical IT services at any time needed. activities. • ITIL, COBIT, ISO 20000 for improving, developing, and reviewing The Agile Software Development Information Technologies (IT) ASELSAN’s Information Security and the system to guarantee business Lifecycle implemented under the IT As the most effective measure to processes and Business Continuity Policies can be continuity. Request Management System helps tackle the COVID-19 pandemic, social • ISO 9001 Quality Management accessed by all stakeholders at the address users’ needs in the fastest and distance and online modes of working System frameworks and standards. corporate website. In addition; users are informed of most efficient manner. via IT systems were introduced and ASELSAN Websites Terms of Use, made available for employees in record These management systems and Pursuant to ASELSAN’s Information Privacy and Cookie Policy, and the ISO 27001 Information Security time compared to similar practices frameworks help follow best practices Security Policy: principles applied to people using Management System (ISMS) was in Turkey to eliminate the need for such as the CIS (Center for Internet “Ensuring information security is of websites are regulated in detail. established in 2016 as part of IT, physical labor/meetings. Security) Cyber Security Controls vital importance for ASELSAN. To import, export, transit, customs, and in the world, achieve continuous this end, ASELSAN is committed In order to ensure information foreign trade processes. Currently, Video, audio, and text-based development, and ensure sustainable to protecting all the information security, information assets and under the supervision of the Information conference/communication systems management of information systems assets it owns, fulfilling information data communication channels are Management Directorate, the system have been deployed quickly both on across the organization. Risk security requirements according to continuously controlled using up- was re-certified in 2019 and this the Internet and intranet platforms to management is a periodic process that international standards and applicable to-date security technologies at certification was maintained subsequent provide an environment for employees enables all IT risks to be monitored laws, managing existing and potential ASELSAN. The Company adopts and to successful internal and external audits to work safely without having to move consistently and ensures necessary risks, and continuously improving, uses secure solutions for endpoint in 2020. The ISMS covers the Macunköy between places. These systems mitigation measures to be taken developing, and reviewing information security, crypto applications, security of facility and the Gölbaşı and Akyurt came with various platforms in use accordingly. security.” portable devices, and remote working data centers in relation to the business around the world, helping eliminate models. processes specified above. the barriers to communication with the Full compliance with the Personal In addition; Users are informed with outside world. Moreover, ASELSAN’s Data Protection Law No. 6698 and ASELSAN Websites Terms of Use, The Company organizes Established in 2019 under the local and national BizBize video relevant legislation Privacy and Cookie Policy, and the comprehensive training programs to Information Management Directorate, conference system was also rolled out In the activities carried out by principles applied to people using raise the users’ information security the ISO 22301 Business Continuity in this period. In an effort to provide ASELSAN, the principle of full websites are regulated in detail. awareness and informs them on the Management System was successfully these systems not only on PC-based compliance with the Personal Data latest information security incidents. A maintained based on the principles platforms but also on mobile devices Protection Law No. 6698, secondary phishing simulation was made in 2020 of continuous development, as in a secure manner, the a-ileti (e-text) legislation and the fundamental to maximize users’ responsiveness to demonstrated in the follow-up audit mobile app was launched in this opinions and policy decisions of the information security. conducted in January 2021 for 2020 period. Personal Data Protection Board is due to the pandemic. observed. In this context, ASELSAN fulfills the necessary obligations with the Personal Data Protection Briefing 94 ASELSAN Sustainability Report 2020 Our Innovation-Driven Product and Service Approach 95
Information Systems and Information Security Legal Affairs’ Activities on applicable laws and rules. Pursuant contract it signs special provisions Information Security and Protection to the law, ASELSAN introduced to guarantee compliance with the of Personal Data internal regulations including the Law and secondary legislation in ASELSAN Policy on the Protection and the processing of personal data. The number of campuses supported by Information Processing of Personal Data and the The Company also obliges the 1. ASELSAN Policy on the Retention and organizations and entities it does Disposal of Personal Data (“Policies”). business with to enforce these Systems Management is 13, and the number of As per Article 12 of the Personal Data The Company guarantees and provisions. These matters are governed Protection Law no. 6698 (the “Law”), enforces the implementation of these by the ASELSAN Policy on the ASELSAN subsidiaries is 5. in cases where personal data is rules in all relevant processes since the Protection and Processing of Personal accessed by third parties for malicious Policies also govern the procedures of Data and the ASELSAN Policy on the purposes, the data controller is obtaining the forms and agreements Retention and Disposal of Personal obliged to provide information to data specified above. Data (“Policies”), which are available subjects, the personal data of whom in Turkish and English and can be is compromised, on such infringement 3. accessed at www.aselsan.com.tr/KVK within a reasonable time period and and www.aselsan.com.tr/en/home- notify the Personal Data Protection As specified in article (b) of ASELSAN’s page/pdp. The Company guarantees Authority (the “Authority”) on this Personal Data Processing Briefing and enforces the implementation of matter. Where necessary, such breach Document, as well as in Section 2 these rules in all relevant processes may be announced on the official of the Policy on the Protection and since the Policies also govern the website of the Authority or in any other Processing of Personal Data, ASELSAN procedures of obtaining the forms and way it deems appropriate. processes personal data in full agreements specified above. compliance with the terms stipulated In addition, ASELSAN finalizes the in the Personal Data Protection Law The ASELSAN Personal Data requests submitted to it by relevant no. 6698 and adopts the measures set Committee (the “Committee”) was persons under Article 11 of the Law forth by the Personal Data Protection established for the purposes of within 30 days in accordance with the Authority. In this respect, ASELSAN monitoring the processes relating to matters specified in Article 6 of the processes only those personal data as personal data protection as per the same Law. ASELSAN also complies described in Section 3.1 of the Policy provisions in Article 7 of the ASELSAN with the matters governed under the on the Protection and Processing of Policy on the Retention and Disposal “Principles” and “Effect of the Policy, Personal Data. of Personal Data available in English Incidents of Breach, and Sanctions” and Turkish at ASELSAN’s website. sections of ASELSAN’s Personal Meanwhile, ASELSAN processes Consisting of senior managers at Data Retention and Disposal Policy personal data as stipulated on Pages 3 ASELSAN, the Committee is in charge in responding to and finalizing such to 8 of the Policy on the Retention and of ensuring the compliance of all requests at no additional cost within 30 Disposal of Personal Data and is limited ASELSAN units with these Policies days and reporting the result of such to the lawful purposes described and managing processes regarding request to relevant persons. previously. If the relevant person’s personal data. The Committee can be explicit consent is required under accessed at [email protected]. 2. applicable law, a Briefing Document is drawn up in line with the purpose Risk assessments and matters ASELSAN is in full compliance with the for which the data will be processed regarding the measures taken are Law, secondary legislation, and any and the document also describes governed by the ASELSAN Policy guidelines and manuals issued by the the case where such data will be on the Protection and Processing Personal Data Protection Authority. processed. Explicit consent is sought of Personal Data and the ASELSAN ASELSAN provides a “Personal Data only after the completion of all these Policy on the Retention and Disposal Protection Briefing Document” to procedures. Data subject’s personal of Personal Data (“Policies”), which are employees, visitors on its campuses, data is processed only for the purposes available in Turkish and English and business partners, suppliers, and every specified and then disposed of as laid can be accessed at www.aselsan.com. individual the personal data of whom out in the relevant Policy. tr/KVK and www.aselsan.com.tr/en/ Information Systems Management in Figures ASELSAN processes on a case by home-page/pdp. These Policies are in The number of IT hardware case basis. Where necessary, “Explicit 4. effect in all processes and procedures Consent Declaration Forms” are carried out within the Company. As per managed at ASELSAN is Number of Employees/Users 8,936 99,479. obtained from these individuals along As for cases where ASELSAN transfers Article 5 of the ASELSAN Policy on the Average Age 33 with other agreements and covenants personal data, written assurances are Protection and Processing of Personal if personal data is to be processed obtained from the parties to whom the Data, however, laws and regulations Number of Facilities/Premises Supported 13 and transferred. As for cases where data is to be transferred that personal on personal data are monitored to ASELSAN transfers personal data, data will be processed in accordance update the Policy and adopt necessary Number of ASELSAN Affiliates Supported 5 written assurances are obtained from with all applicable laws and rules. In measures accordingly. the parties to whom the data is to addition, ASELSAN includes in every Managed IT Hardware 99,479 be transferred that personal data will be processed in accordance with all 96 ASELSAN Sustainability Report 2020 Our Value-Driven Supply Chain Management 97
Our Value-Driven Supply Chain Management
As a global brand in its industry, ASELSAN effectively and smoothly carries out its domestic and overseas supply processes at global standards.
For ASELSAN, one of the most May 2019. With its category-based ASELSAN’s supply chain plays important links in its value chain design, the new structure is intended a role in the execution of all is the suppliers since they have to have a command of the market activities from the signature a direct impact on the product/ and needs in supply and supplier stage of the projects to the service quality and the activities of management; manage risks effectively; post-delivery process. the Company and play a defining role function proactively; control costs at to boost its competitive edge. While the earliest stage possible; monitor its materializing economic growth and areas for improvement continuously technological development goals with to create further value; reduce foreign all the stakeholders in its supply chain, reliance; adopt an evaluation mindset ASELSAN works to ensure the wide focused on localization and total cost adoption of an environmental mindset of ownership; assume the task of aimed at respectful and moderate contributing to all the stages of the use of all resources; to raise social supply chain; and aim at reaching a awareness on employment, equality, sustainable, lean and agile structure. safety, training, and health; and to uphold ethical values. ASELSAN is In order to incorporate the principle bound by the contracts it signs for the of sustainability into supply chain project-based activities, and its supply processes, share good practices in this chain is involved in the execution of area, and monitor the developments all activities from contract execution and novelties in the sector, in 2017 to project delivery and subsequent upon the approval of the Board, stages. ASELSAN became a member of the Supply Chain Management Association The Industrialization and Supply (TEDAR), which is a non-governmental Directorate under the Corporate organization with a significant role in Governance Vice Presidency, and the Turkish business world. the planning, production, and logistics organizations under the At ASELSAN, supply chain risks, the Business Sectors are in charge of the risks arising from the dynamics of the management of ASELSAN’s supply sector, the risks linked with suppliers, Suppliers are an integral part of a and measurable platform. Furthermore, chain. customers, or production activities, as Companies willing to work sustainable supply chain. To ensure the Company developed a platform, well as those unpredictable risks such with ASELSAN can apply via continuous communication and “Gücümüz Bir (Powerful Together)” World-class supply approaches as global crises, pandemics, natural the Supplier Portal available collaboration with suppliers, ASELSAN to communicate with suppliers more The Company launched a disasters, and terrorist incidents are at the corporate website. has developed a Supplier Portal effectively. Further information on this transformation project in 2018 identified and monitored by relevant where companies willing to work with platform is provided under a separate to establish a supply function functions. Risks considered to be ASELSAN can apply to the corporate heading below. that regularly monitors worldwide at a critical level are also monitored website. Quotes, order management, recognized supply approaches, and measured, after which short- quality process management, supplier ASELSAN Supply Workshop adopts good practices, easily adapts and medium-term strategies are delivery management, supplier ASELSAN’s Supply Workshop for 2020 to novelties, welcomes development, developed and necessary actions application management, supplier was unfortunately postponed due to and provides operational excellence. are implemented to prevent them or master data management, and supplier the COVID-19 pandemic after the first The project has been executed in mitigate their impact. performance management activities two editions in 2018 and 2019. are performed on the Portal. The portal helps manage all supply chain activities on a fast, reliable, traceable, 98 ASELSAN Sustainability Report 2020 Our Value-Driven Supply Chain Management 99
Supplier Evaluation
In 2020, ASELSAN conducted environmental and social evaluations on 56 companies and started collaborations with 29 of them.
Driven by the sustainability principle Production/Design Evaluation ASELSAN’s supply policies it pursues in its activities, ASELSAN • Technological Level, Quantitative can be found on the corporate monitors the targeted economic, Adequacy and Diversity of the website of the Company. environmental and social performance Production Infrastructure in its global supply chain of thousands • Testing and Workbench Infrastructure of registered suppliers, and builds • Compliance with Applicable supplier relations in compliance with Production/Audit Standards laws, human rights, and its defined • Training the Company’s sustainability mindset After the inspection, firms that score These rules include and are not limited corporate ethical rules. • In-Production Audit Capabilities and adapt to innovative practices, above pre-defined points are entitled to general business ethics principles, while incorporating its expectations to become “Approved Supply Industry and matters relating to the environment, The main criteria ASELSAN seeks ASELSAN’s supply policies can be in the written contracts with suppliers Firm.” Firms that are considered to occupational health and safety, in the companies while measuring found on the corporate website of and monitoring the continuity of these have critical shortcomings regarding remuneration, child labor, working times and evaluating suppliers include the Company. In supplier selections, practices regularly. their production/design infrastructure and conditions, and universal human technology infrastructure, qualified ASELSAN does not include in the may end up not getting any approval rights. Suppliers’ internal practices in staff, comprehensive quality system, supply chain those companies where Supplier Selection and Evaluation from the Inspection Board despite the field of ethics, and whether they solid financial structure, and full it identifies non-compliance with Process scoring enough points. implement separate sustainable supply compliance with ASELSAN’s its criteria. These companies are At ASELSAN, suppliers go through policies for their suppliers are also objectives and policies, Environmental notified of their shortcomings and the different selection and evaluation Performance Inspection may be evaluated and examined during supplier Management, Occupational Health and evaluation process is initiated again criteria depending on their qualifications planned for approved firms depending risk assessments. Safety Management standards, and provided they rectify the reported and fields of operation. Applications on their performance results retrieved labor laws, as specified in ASELSAN’s shortcomings. The companies in which of suppliers wishing to work with from the ERP system. A Performance Determining Critical Suppliers supply chain policies and international ASELSAN identifies improvement ASELSAN are received electronically. Inspection may also be deemed ASELSAN identifies critical suppliers standards. The criteria ASELSAN seeks areas in terms of environmental and Supplier records are retained necessary if a supplier went through considering certain criteria including but in supplier evaluations are explained social criteria go through follow-up electronically, and their performance is significant changes (change of address, not limited to existing business volumes, below. audits, and their progress is monitored. monitored via the Enterprise Resource renovation of the plant, etc.) that product/category criticality, reliance on This helps encourage the companies Planning System. ASELSAN thinks will have an impact the supplier, the number of batches in Administrative Evaluation Issues failing to fully perform their social on that supplier’s administrative, shipments, and the number of products • Occupational Health and Safety and legal responsibilities to tackle Suppliers whose design or production, or quality structures or on procured. Priority is given to critical Practices their shortcomings and fulfill their production activities fulfill ASELSAN’s the product quality. suppliers in supplier risk assessments • Environmental Management System obligations. documentation and/or requirements and supplier development activities. Practices are inspected as part of preliminary Ethical Principles and Code of • Financial Structure In 2020, ASELSAN conducted evaluations. In these inspections, there Conduct for Suppliers The Kraljic Matrix Analysis is performed • Personnel Proficiency and environmental and social evaluations are separate questions on the firm’s ASELSAN formulated the Ethical to determine how critical a product/ Competency on 56 companies and started administrative, production, design, and Principles and Code of Conduct for category is. Each material/material • Certifications (ISO, NADCAP, Security collaborations with 29 of them. quality systems. Sets of questions are Suppliers so that all suppliers adopt group business sectors procure has of Premises, etc.) determined looking at the firm itself and implement ethical principles and different functions and dynamics, which ASELSAN suppliers’ adoption of and expanded with administrative and code of conduct, communicate it to requires the Company to implement Quality System Evaluation national and international standards quality system evaluation questions their employees, and require them to different supply strategies for relevant • Functioning and Control of Quality such as ISO 9001, AS 9100, AQAP, in addition to the production and/or pay ultimate attention to these rules. materials/material groups. To this end, Management System and CMMI in their operations makes design question sets as per the field of The Ethical Principles and Code of the Kraljic Matrix is used to categorize • Resource Management it possible to use a shared language operation. Conduct for Suppliers are available the materials and classify them • Procurement Process and Supplier in supplier selection and audit on ASELSAN’s corporate website and under “Supply Risks” and “Impact on Management stages. In this regard, ASELSAN www.gucumuzbir.com. Profitability” to determine appropriate • Product Realization Process encourages suppliers to comply with supply strategies. Such management • Measurement, Analysis and strategies will help critical suppliers, Improvement in particular, develop themselves effectively. 100 ASELSAN Sustainability Report 2020 Our Value-Driven Supply Chain Management 101
Supplier Evaluation Currently, the Company has 378 Tier 1 suppliers, which represent 49% of the overall scores are calculated separately for spending in procurement. There are 81 Critical Tier 1 suppliers. They represent 39.7% each supplier. Corrective action and of the total amount procured from critical Tier 1 suppliers and make up 80.5% of the development activities required on the supply activities performed with all Tier 1 suppliers. ASELSAN works with 297 non- supplier’s side are determined in light of Currently, the Company has 378 Tier 1 suppliers, which critical Tier 1 suppliers, representing 9.3% of the overall spending in procurement. these scores. The quality management infrastructure, represent 49% of the overall spending in procurement. Total Number of Ratio in Overall Supply product quality, on-time delivery Type of Supplier Suppliers Spending (%) performance, production infrastructure/ Total Tier 1 378 49.0% adequacy, financial stability, and organizational management risks are 39.7% Critical Tier 1 81 (~80.5% of total Tier 1) considered most critical in terms of their impact on ASELSAN’s business Non-Critical Tier 1 297 9.3% continuity. The existence of such HIGH risks plays a key role in identifying BOTTLENECK STRATEGIC Supply SUPPLY RISK IMPACT ON high-risk suppliers. In the meantime, Risk NON-CRITICAL LEVER PROFITABILITY HIGH Supplier Rewarding System Supplier Risk Management environmental, occupational health LOW Impact on Profitability 3 2 1 3 2 1 and safety, business ethics, and social ASELSAN recognizes the efforts of Managing the risks related to the High Medium Low High Medium Low SUPPLY CLASS risks are among critical sustainability suppliers who deliver extraordinary supplier ecosystem is essential Cx Cabling 1 1 NON-CRITICAL risks that ASELSAN particularly looks contributions to its existing operations, for ASELSAN to achieve business 1 1 BOTTLENECK into. Risk areas identified are reported Fiber Optic Cabling business continuity, and achievements. continuity and long-term goals. to suppliers as an opportunity for Internal 1 1 NON-CRITICAL In 2021, the Company plans to roll out ASELSAN established a Supplier Risk Cabling improvement/development, while they Cable Network 1 1 NON-CRITICAL a Supplier Rewarding System where it Management System aimed at effective are expected to take action within Rf Cabling 1 1 NON-CRITICAL will reward suppliers for excellence in management of existing supplier risks. a predefined period of time. Follow- Semi-rigid 1 1 NON-CRITICAL three categories. These categories are up visits are organized to monitor 1 1 NON-CRITICAL as follows: This system enables close contact Cabling Processes improvement efforts and measures with suppliers and helps perform Production 1 1 NON-CRITICAL taken. Medium-risk suppliers are visited 1) SUPPLIER EXCELLENCE risk analyses during visits based on Card Sets Production Software Upload 1 1 NON-CRITICAL once every 6 months, and low-risk AWARD question sets and data analytics Test 1 1 BOTTLENECK suppliers once a year. Prompt response It covers suppliers who significantly based on supplier data. Impact and Rubber Based Material 1 1 NON-CRITICAL is given in high-risk areas. As part of contribute to ASELSAN’s operations likelihood regarding 64 sub-criteria for Production supplier development, there are plans and achievements, having ensured risks under the headings of financial, Welding Operations 1 1 NON-CRITICAL to conduct joint improvement efforts organizational excellence in all their managerial, legal, ethical, quality, Composite Based Material 1 1 STRATEGIC and deliver mentoring and training managerial, operational, social and logistics, production, after-sales Production sessions to suppliers with respect to environmental practices. support, security, reliance, social and Pro- Construction 1 1 NON-CRITICAL risk areas. environmental risks are evaluated. Risk duction Foam, Sponge Cut 1 1 NON-CRITICAL 2) SUPPLIER LOCALIZATION Metal Extrusion Processes 1 1 NON-CRITICAL AWARD 1 1 NON-CRITICAL Metal Injection Processes It covers suppliers who provide Microwave Modules and Filters 1 1 BOTTLENECK outstanding support to ASELSAN’s Optic Material Production 1 1 STRATEGIC localization activities. Friction Stir Welding (FSW) 1 1 NON-CRITICAL
Production Requiring Special Deep Brazing 1 1 BOTTLENECK 3) SUPPLIER SUSTAINABILITY Processes Vacuum Brazing 1 1 BOTTLENECK AWARD Gear Production 1 1 BOTTLENECK It covers suppliers who have attained Plastic Injection Processes 1 1 NON-CRITICAL outstanding achievements in environmental and social sustainability Sheet Metal Material Production 1 1 NON-CRITICAL practices that ASELSAN regards as a System Integration 1 1 STRATEGIC top priority. Machining Simple Mechanical Production 1 1 NON-CRITICAL Precision Mechanical Production 1 1 STRATEGIC The rewarding system is intended to Microwave Mechanical Production 1 1 BOTTLENECK encourage suppliers to develop their Ultrasonic Welding Processes 1 1 NON-CRITICAL processes and minimize sustainability Spring Material Production 1 1 NON-CRITICAL risks. Fast Prototyping 1 1 NON-CRITICAL Printed Circuit Board (PCB) 1 1 STRATEGIC 102 ASELSAN Sustainability Report 2020 Our Value-Driven Supply Chain Management 103
Supplier Evaluation Supplier risk assessment activities began in August 2020, and a total of 72 firms went through risk assessments. Goals regarding supplier risks:
- High Risk Critical Rate of Suppliers: 0% ASELSAN’s Supplier Risk Management and Supplier Development System is described below. - Rate of High-Risk Suppliers <1%
In 2020, only one Tier-1 supplier was identified to be posing High Risk, while such risks have been reduced through remedying SUPPLIER RISK MANAGEMENT practices as of 2021. No supplier has been found to be posing a High Risk in 2021.
Risk assessments for EMM & Card companies, as well as supplier risks are provided in the comparative table below together Supplier Segmentation Early Warning Reports Risk Mitigation Planning Identifying Bottleneck, Strategic, Identifying, through periodic reports, Devising suggestions and strategies to with risk sub-headings: High-Volume (Open Order) and unfavorable developments in mitigate risks, developing risk-mitigating High Risk firms, and setting the performance of suppliers such as action plans, setting a timeframe for order of precedence and periods for quality, shipment, and response improvement as well as the owners of Firm Firm Firm Firm Firm Firm Firm Firm Firm Firm Firm Firm Firm Firm Firm Firm monitoring in terms of criticality times to quotes each action 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 BUSINESS ADMINISTRATION 2.6 2.6 4.6 3.8 2.9 4.8 5.6 5.6 5.3 5.6 5.2 6.0 6.2 6.1 8.7 8.7 FINANCIAL 2.8 2.8 2.8 3.5 2.8 2.8 2.8 2.8 2.8 4.3 2.8 2.8 2.8 2.8 2.8 2.8 COST ORIENTATION 5.3 6.0 2.8 4.5 6.0 4.5 7.5 6.8 8.3 4.5 6.0 5.3 3.8 7.5 12.0 10.5 MANAGERIAL Risk Survey Risk Asessment Implementation RISKS RELIANCE 6.0 4.8 3.0 4.8 3.6 3.6 3.6 3.6 3.6 3.6 4.8 3.6 3.6 14.4 4.8 3.6 Risk assessments from suppliers through Performing risk Mitigating/eliminating risks with Risk Survey questions prepared and assessments for suppliers the participation of suppliers COMMUNICATION 2.0 2.0 2.0 2.0 2.0 2.0 2.0 3.0 2.0 2.0 2.0 9.0 2.0 4.0 2.0 2.0 collection of preliminary data prior to in line with responses and relevant ASELSAN units; RELATIONAL 1.5 3.0 1.5 2.5 1.5 2.5 1.5 1.5 2.5 1.5 1.5 3.0 3.0 2.0 2.5 2.5 inspections to the survey, category conducting works to improve QUALITY 3.0 3.8 3.0 3.0 4.4 3.1 3.0 5.1 4.4 3.5 6.1 3.8 6.9 5.3 8.3 7.3 Eg: Do you have a maintenance/repair teams’ opinions, and risk supplier performance; monitoring team? How many people do you have inspections their performance and revising LOGISTICS 3.6 3.2 4.2 3.4 3.4 4.4 4.2 4.2 3.4 4.2 4.2 6.0 4.6 7.6 4.0 6.4 on that team? Do you plan preventive, action plans when and if needed OPERATIONAL PRODUCTION 2.4 2.6 2.5 2.7 3.0 2.4 2.2 2.8 3.4 3.5 3.5 3.0 4.5 4.1 4.6 3.7 predictive, corrective, and autonomous RISKS AFTER-SALES SUPPORT 2.0 2.0 2.0 2.0 2.0 4.0 2.0 2.0 2.0 2.0 5.0 7.0 6.0 4.0 6.0 5.0 maintenance? INFORMATION SYSTEMS 2.3 2.3 2.3 2.3 2.3 2.3 2.3 5.0 7.0 2.3 4.7 2.3 7.0 6.3 7.0 6.0 HUMAN RESOURCES 2.4 4.3 2.8 2.8 2.8 4.0 2.8 3.3 3.8 4.4 2.9 3.5 2.8 3.1 5.4 7.3
ENVIRONMENTAL OCCUPATIONAL HEALTH AND 1.8 1.2 1.2 1.2 2.2 1.2 1.2 1.2 1.5 1.2 1.2 2.0 1.2 1.2 2.2 1.8 AND SOCIAL SAFETY SUPPLIER DEVELOPMENT RISKS ENVIRONMENTAL AND 3.3 1.3 1.3 2.7 3.0 2.7 2.8 1.3 3.5 2.8 3.3 2.0 1.3 4.3 5.3 6.7 CLIMATE CHANGE ECONOMIC 3.4 3.4 3.4 3.4 3.4 3.4 3.4 3.4 3.4 3.4 3.4 3.4 3.4 3.4 3.4 3.4 EXTERNAL POLITICAL 1.7 1.7 1.7 1.7 1.7 1.7 1.7 1.7 1.7 1.7 1.7 1.7 1.7 1.7 1.7 1.7 RISKS DISASTERS 2.5 2.5 2.5 2.5 2.5 2.5 2.5 2.5 2.5 2.5 2.5 2.5 2.5 2.5 2.5 2.5 Supplier Designating Supplier Determining Supply Suppliers Sufficiently Assessment in Line Continuity of the Target Selection and Requirements and Qualified to Meet the with the Performance Supply Base Creating a Pool of TOTAL RISK 3.1 3.2 3.3 3.3 3.4 3.6 3.6 4.0 4.0 4.0 4.3 4.5 4.7 5.8 5.7 5.9 Selection Criteria Performance Needs Indicators Set Competent Suppliers Assessment DESIGN (IF COMPETENT) 2.5 2.5 2.5 2.5 2.5 4.0 2.5 2.5 2.5 4.0 DESIGN APPROVAL STATUS Yes Yes No No Yes No Yes No Yes Yes No Yes Yes Yes No Yes
Target Rectification of Supplier Shortcomings Fulfillment of Existing Production SUPPLIER RISK ASSESSMENT - SAMPLE FIRM (Remedying Activity) Requirements BUSINESS ADMINISTRATION 4.6 Supplier FINANCIAL 2.8 Risk and COST ORIENTATION 2.8 Provision of Feedback and Know-How MANAGERIAL BUSINESSİŞLETME YÖNETİMİ ADMINISTRATION Competence ENVIRONMENTAL AND RISKS ÇEVRE VE İKLİM 5 Assessment RELIANCE 3.0 FİNANSALFINANCIAL CLIMATEDEĞİŞİKLİĞİ CHANGE Continuous Development Activities for COMMUNICATION 2.0 4 Suppliers BUSINESS RELATIONS 1.5 OCCUPATIONALİŞ S AĞLI ĞI VE Target 3 MALİYECOST ORIENTATION T OD AKLI LI K Constantly Evolving Supplier Network QUALITY 3.0 HEALTH ANDGÜVENLİĞİ SAFETY (Continuous development) 2 Incentives and Awards LOGISTICS 4.2 OPERATIONAL PRODUCTION 2.5 HUMAN RESOURCES 1 RISKS İNSAN KAYNAKLARI İLETİŞİMCOMMUNICATION AFTER-SALES SUPPORT 2.0 0 Supplier Warnings and Penalties Development INFORMATION SYSTEMS 2.3 HUMAN RESOURCES 2.8 BİLGİINFORMATION SİSTEMLERİ İŞBUSINESS İLİŞKİSİ RELATIONS ENVIRONMENTAL SYSTEMS Supplier Participation (Design/Process) AND SOCIAL OCCUPATIONAL HEALTH AND SAFETY 1.2 RISKS ENVIRONMENTAL AND CLIMATE CHANGE 1.3 AFTER-SALESSATIŞ SONRASI KALİTEQUALITY ECONOMIC 3.4 SUPPORTDESTEK Performance Development for Target Integrated Supplier Network EXTERNAL POLITICAL 1.7 Suppliers’ Sub-Contractors RISKS PRODUCTIONÜRETİM LOGISTICSLOJİSTİK DISASTERS 2.5
DESIGN DESIGN (IF COMPETENT) 0.0 104 ASELSAN Sustainability Report 2020 Our Value-Driven Supply Chain Management 105
Supplier Evaluation
As part of these activities, the Company paid visits ASELSAN takes ESG factors into account during the risk to medium-risk suppliers and helped them complete analyses it performs in the selection of new suppliers and suggested corrective actions and eliminate/reduce risks. the activities of existing suppliers.
Supplier Risk Management Although some firms have appropriate/ In the past 12 months, one high-risk through the ISO 50001:2018 EnYS Conflict Minerals Indicators In 2021, suppliers will be adequate ESG processes in place, supplier took corrective action and audit and therefore established the ASELSAN’s policy on conflict minerals expected to follow up a ASELSAN defines the risk of all shortcomings may be spotted in relation to improved its quality system, storage ENERGY EFFICIENT PROCUREMENT is published on the Company’s website series of indicators such as approved suppliers, particularly that of targets, policies, or certificates, in addition conditions, lifed item management PROCEDURE for procurement and Powerful Together (Gücümüz Bir) consumption of water, energy, critical suppliers; plans monitoring and to managerial (monitoring, ownership, system, and OHS processes. These practices. Efforts were undertaken platform. Currently, no conflict mineral and fuel; monitor energy corrective activities for the risk areas etc.) shortcomings and shortcomings in helped the firm to be re-added in the to introduce new process-related is purchased by ASELSAN, while consumption per employee; of high-risk suppliers; and supports implementation (lack of an Ethics and medium-risk group. practices such as consideration only supply industry firms in certain and conduct planned works suppliers in minimizing their risks Code of Conduct document, failure to of energy efficiency at the time categories (such as Paint/Coating, for the purposes of CDP. through practices such as training and use safety footwear where necessary, High-Risk Supplier Ratio (2020) = 0.26% of procurement. Integration and Card, etc.) procure these materials. mentoring. As part of these activities, etc.). These firms are then included in the High-Risk Supplier Ratio (2021) = 0% minimization of logistics activities, Relevant companies’ dealings with the Company paid visits to medium- medium-risk group. They are provided with prioritization of environmentally-friendly conflict minerals are examined under risk suppliers and helped them a reasonable time period for corrective ESG (Environmental, Social & technologies in machinery/equipment the Supplier Risk Management System complete suggested corrective actions action to tackle these shortcomings, after Governance) Integration in Supply are also among these practices. to evaluate their risks and vulnerabilities and eliminate/reduce risks. ASELSAN which they are re-added into the low-risk Chain Strategies The plan for the coming period is to in terms of conflict minerals. Risks evaluates the working conditions group when improvements are confirmed. ASELSAN’s core strategy in supply set some indicators to monitor and with all existing painting/coating and and approval status of suppliers chain management is to reach report the gains to be achieved by the card firms were examined, and their posing persistent high risk separately. In the coming period, progress in Overall business excellence in supply chain Company. procurement activities were found to Indicators ASELSAN looks into are as Quality and On-Time Delivery will also be processes, contribute to ASELSAN’s comply with the principles in relation to follows: followed as an indicator as part of supplier sustainable growth and competitive The ratio of suppliers’ ESG risks in the conflict minerals. risks. In 2021, suppliers will be expected edge, and meet the needs in a timely, overall risks is 12%. Quality, on-time 1. High-Risk Supplier Ratio = 0% to follow up a series of indicators such complete, and most cost-effective delivery, and managerial risks are Sub-Industry Capacity Program (2021) as consumption of water, energy, and manner. regarded as the most critical risks for The Company established a “Supplier fuel; monitor energy consumption per ASELSAN’s business continuity. Capacity Management System” in ESG Risks employee; and conduct planned works for ASELSAN takes ESG factors into 2019 for the purposes of effectively 1. Ratio of High ESG Risk Suppliers the purposes of CDP. Necessary data will account during the risk analyses Supply Chain Transparency and monitoring, managing, and developing = 0% be collected through visits, surveys, and it performs in the selection of new Reporting the capacities of sub-industry firms; 2. Ratio of Medium ESG Risk Suppliers other means to this end. suppliers and the activities of existing Information including but not limited and ensuring that ASELSAN’s needed = 23.6% 3. Ratio of Low ESG Risk Suppliers suppliers. to the number of domestic suppliers, supply items are delivered promptly, Feedback on the areas of improvement is amount of orders placed and payments thoroughly, and cost-effectively as = 76.4% provided to suppliers found to be posing In April 2021, ASELSAN went made, and the number of pending per the operating fields of the sub- risks, while a reasonable time period is orders are reported to the public industry. Phase II development efforts granted for improvement and follow-up transparently in ASELSAN’s Annual commenced moving the system to visits are paid at following intervals. Reports. Power BI in late 2020.
As part of the first phase of these works, an algorithm was developed RISK SCORE DEFINITION REVIEW PERIOD ACTIONS whereby the past shipment data, open orders, etc. of the Company’s 12-25 CATASTROPHIC RISK <1 Month Risk is in no way acceptable. It must be immediately addressed by all resources to prevent it from occurring or action must be taken to eliminate it if it already occurred. sub-industry firms are evaluated and capacities are monitored. 8-12 HIGH RISK 1-2 Months Risk is not acceptable. Immediate action must be taken to prevent it or it should be eliminated if it already occurred.
5-8 MEDIUM RISK 3-6 Months Although the risk is acceptable, it must be continuously monitored, and short- or medium- term plans are made to prevent the risk or eliminate it if it already occurred.
3-5 LOW RISK 6 Months Although the risk is acceptable, it must be continuously monitored and plans made to prevent it.
1-3 VERY LOW RISK 1 Year Risk is acceptable and no action is needed. 106 ASELSAN Sustainability Report 2020 Our Value-Driven Supply Chain Management 107
Supplier Evaluation
Currently, no conflict mineral is purchased by ASELSAN, ASELSAN’s industrialization model is structured in parallel with while only supply industry firms in certain categories the industrialization pyramid of the Defense Industry Presidency. (such as Paint/Coating, Card, etc.) procure these materials.
The system is intended to help An Exemplary Industrialization According to the model, the base of stage of the industrialization process. In place orders considering these Model for the Sub-Industry the pyramid will consist of numerous order to implement the industrialization firms’ capacities, utilize the sufficient Works have been initiated to help sub-industry firms - mostly SMEs - with model more effectively, ASELSAN capacities that are approved but idle carry out sub-industry activities more expertise in a certain production or started works on dividing approved firms can offer, and prevent any failure effectively and allow medium-scale design field, whereas the middle layer sub-industry firms into subcontractor to make forward-looking plans due to firms in terms of size and competencies will be composed of medium-sized and sub-industry classes in the last uncertain capacities. to extend industrialization efforts. The firms, also defined as subcontractors, quarter of 2019. This classification aim was to implement the defense with project management, supply will help give turnkey assignments to Strategic Cooperation Agreements industry’s industrialization model in the and supplier management, and subcontractors as per their system From among its approved suppliers, sub-industry processes of ASELSAN. configuration management capabilities level, which will enable them to create ASELSAN identifies those firms alongside production or design their supply ecosystems and provide that create value-added products ASELSAN’s industrialization model competencies. The plan is to continue full support to the industrialization and designs in a critical field for is structured in parallel with the working together with universities and model. In 2020, seven headings were the Company, deliver outstanding industrialization pyramid of the R&D organizations such as TÜBİTAK determined during preparations for performance in this field, and have Presidency for Defense Industry. either directly or indirectly at each the list of questions in inspections. An potential in alignment with ASELSAN’s inspector pool of 85 people, as well as growth targets. Later, ASELSAN signs general principles, were established, Strategic Cooperation Agreements with with plans to initiate inspections of pilot these firms. firms in 2021. ASELSAN Industrialization Model They are ASELSAN’s priority suppliers in their respective operating areas and eligible for the grants provided by ASELSAN. A commission was established to regularly monitor the performance of existing strategic partners and identify potential new partners on an annual basis.
Suppliers that execute Strategic Cooperation Agreements are expected to show progress in such areas as R&D localization, product improvement, Organizations - and cost reduction. In 2020, the Universities Company signed Strategic Cooperation Our Subcontractors Agreements with 14 additional companies, raising the number of cooperation agreements to 50.
Our Approved Suppliers 108 ASELSAN Sustainability Report 2020 Our Value-Driven Supply Chain Management 109
Supplier Evaluation
Supplier Scorecard development activities were started in 94 firms have utilized the Supplier Financing System at 2019 for the purposes of measuring the performance of ASELSAN and were extended loans totaling approved sub-industry firms with a scorecard. USD 134 million to date.
Supplier Scorecard Supplier Financing System Together) serves suppliers via a It will also help inform suppliers on the Supplier Scorecard development activities were started in 2019 for the purposes of measuring the performance of approved sub- ASELSAN provides suppliers with corporate website and mobile global and local developments/news as industry firms with a scorecard. Scorecards will help ASELSAN look into the performance of suppliers and determine from which financing support, as well. To this applications. well as on the developments regarding firm it will request a quote. Set to measure the performance in 2020, it will be deployed in 2021. The introduction of scorecard end, the Company launched the ASELSAN; enhance their contributions practices into purchase and sale processes is intended to prioritize successful firms in requests for proposals and attain a first Supplier Financing System of The Platform is intended to strengthen to localization efforts; provide them performance-based purchasing process. Effective monitoring of the performance scores will also encourage suppliers to improve the defense industry in 2013. The relations with existing suppliers, the chance to benefit from ASELSAN’s their performance so that they can receive more purchase orders, and ensure a business continuity model where performance Financing System enables approved introduce the ecosystem with potential, competencies via training, and assist plays a significant role. sub-industry firms, which have a value-adding suppliers, and contribute them in reaching the human resources long-standing cooperation with the to the sustainability of ASELSAN’s they need. Company, to contact the Banks supply ecosystem. ERP Production Lot Approved Field Quality Delivery Audit MGM TGB Total Total registered within the system by No Supplier Place Number of Activity Score Score Score Score Score Score Status submitting their purchase orders to Test Infrastructure take out loans and receive letters Design; Mechanical of guarantee without the need for Design; Hardware Design; additional collateral, guarantor, etc. PRODUCTION The scheme below is an illustration OF CARD SETS; of the system. The Company signed XXX YYYYY 12066 EMM; CABLING 95.94 60.65 78.62 48.74 74.34 B contracts with one additional bank in XXX 1100 5378 94.91 54.02 78.62 48.74 72.04 B 2020, raising the number of partner banks to 12. So far, 94 firms have R&D organizations XXX 2100 3038 99.10 39.85 78.62 48.74 70.15 B used the system, and loans worth USD XXX 3100 537 92.33 70.68 78.62 48.74 75.37 B 134 million were extended, USD 37 million of which was provided in 2020. XXX 4100 1881 99.43 78.22 78.62 48.74 80.79 B The system has contributed to the XXX 5100 1232 60.92 84.69 78.62 48.74 64.33 C financial sustainability of the firms within ASELSAN’s ecosystem. Universities
Under the supplier scorecard system, “Gücümüz Bir (Powerful Together)” Subcontractors firms are evaluated in the following five Platform categories: www.gucumuzbir.com Quality • Quality: The score according to the ASELSAN established a pioneering inspection of firms’ deliveries and innovative platform for the • Delivery: Firms’ compliance with the purposes of fostering the bond with delivery dates as mutually agreed in suppliers, boosting the effectiveness of purchase orders Supplier localization efforts, reducing Turkey’s Sub-Industry • Audit: The result of the most recent Feedback Delivery reliance on foreign resources, and run audit performed in the past three partnerships with suppliers under an Supplier years Scorecard integrated structure. Named “Gücümüz • Customer Feedback: Surveys Bir (Powerful Together);” the platform completed by ASELSAN’s Supply was launched in April 2020. and Quality staff on the firm • Supplier Feedback: Companies The platform is an interactive platform using special processes or working with a target group composed of on special processes evaluate one ASELSAN’s existing and potential Customer Audit another Feedback suppliers. Gücümüz Bir (Powerful 110 ASELSAN Sustainability Report 2020 Our Value-Driven Supply Chain Management 111
Supplier Evaluation
At ASELSAN, Supplier Scorecard development activities As per ASELSAN’s procurement projections for the next three continued in 2020 for the purposes of measuring the years, the amount that remained in the country thanks to the performance of approved sub-industry firms with a scorecard. now local products is USD 126 million.
to localize 350 different product Tech-Driven Industry Initiative LOCALIZATION EFFORTS WITH ranges, 56 of which are featured in ASELSAN consistently takes on the LOCAL COMPANIES brochures; local orders in the amount task of developing and expanding ASELSAN Firm Bank of USD 47 million have been given the ecosystem it belongs to. Local/national product development for 131 products. ASELSAN issued a Memorandum activities have become much more • As per the procurement projections of Understanding to 10 SMEs for Prompt Payment effective thanks to the ASELSAN Local for the next three years, and the “Tech-Driven Industry Initiative” 12 Banks and National Product Development regarding 350 products that are now announced by the Ministry of Industry Board that conducts various works local: and Technology of the Republic of 94 Firms to reduce Turkey’s foreign reliance - The amount remaining in Turkey Turkey. These processes are monitored Loans Extended: and improve the share of local equals USD 126 million; by the ASELSAN staff, who provide USD 134 million components in the products in line with - Earnings correspond to USD 44 guidance when and as necessary. The ASELSAN’s Local and National Product million; aim is to ensure local development Development goals. - And the share of local products at of the products our Country needs, Agreement with ASELSAN No Additional more affordable prices than that of expand R&D and production the Bank Purchase Order Collateral The Board has carried out detailed overseas prices has reached 88%. ecosystems, and assist firms in examinations and studies on some strengthening their competencies. 20,000 products up to date. As a result Works towards including new products of these activities, a decision was made to be determined by Business Sectors The works performed within this to develop and produce, using local in the localization model continue. scope will reduce foreign reliance to sources, 450 products (which equaled Within this scope, all import products meet Turkey’s needs via production 140 brochures) in the first phase. With are regularly examined to identify activities based on national and local the most recent launch, the number priority products in terms of critical resources, while eliminating covered/ has risen to 300, which equals 450 technology, export restrictions, costs, implicit embargos. They will also brochures covering 750 products. The and lead time. Brochures relating help enterprises of all sizes involved Industrialization and Supply Directorate to these products are prepared in this process attain higher visibility initiated product development and accordingly. Companies interested in and boost their competitive edge localization efforts with the design these products review the brochures in international markets. Firms that teams under Business Sectors and the launched via different channels and play a role in this process acquire local manufacturers that have design file their applications via the Gücümüz critical technologies, serve other key capabilities. Since September 2018, Bir (Powerful Together) Platform players of the defense industry, and these activities are ongoing. deployed in mid-April. Applications are get the chance to venture into foreign evaluated by the ASELSAN National markets and start export operations. As part of the aforementioned activities: and Domestic Product Development With this process, the share of local Board, which gives a start to product components in our products will grow, • Some 300 firms have filed around development activities for eligible which will help reduce foreign reliance 900 applications for the brochures products. and contribute to the narrowing of the covering 750 products. current deficit. • Negotiations, production or validation It also provides guidance for applicant processes for over 300 products are companies to benefit from the support ongoing. packages of KOSGEB (Turkish Small • The validation and approval process and Medium Enterprises Development for 23 products with a completed Organization) and the Ministry of prototype is ongoing. Industry and Technology and issues a • The Company finalized efforts memorandum of understanding for the companies as and when needed. 112 ASELSAN Sustainability Report 2020 Our Environmental Responsibilities 113
Environmental Management
As part of the efforts toward minimizing environmental ASELSAN’s energy management is based on the principles of impacts, ASELSAN launched the Zero Waste Initiative at its the ISO 50001 Energy Management System. facilities. The development works for the initiative continued in the 2020 operating period.
ASELSAN is aware that leaving a Alternative awareness-raising means with such environmental accidents. In 2020, ASELSAN delivered more inhabitable world for future are utilized to raise Zero Waste ASELSAN organizes events and online environmental generations requires protection of awareness and establish a culture for programs in line with its principle of protection training to 5,038 the environment it interacts with. To sustainable integrated management leaving an inhabitable world to future employees. this end, it pays utmost attention to systems. Contests are organized at generations and raising employees’ managing the environmental impacts certain intervals to achieve this goal. and other stakeholders’ environmental of its activities and operations most awareness. As part of the events to effectively, using resources responsibly, The ASELSAN Environmental Safety celebrate World Environment Day on developing environmentally-friendly Board (ESB) complements the June 5, a painting contest is organized business processes, and performing Company’s sustainable practices and every year with the participation of environmental impact assessments. works to determine the measures for 5th, 6th, 7th, and 8th-grade students to Laid out by the Senior Management, environmental protection and safety raise the environmental awareness the Environmental Policy with a focus while evaluating the issues regarding of children. The theme for 2020 was on Sustainability clearly demonstrates the implementation of such measures. environmental protection. Accordingly, ASELSAN’s commitment to effectively The ESB monitors and maintains the painting contest was intended to managing the environmental impacts of the implementation of environmental raise the awareness of employees’ its operations. safety measures determines facilitating children and enable them to address proposals, and improves the quality a series of topics such as waste We add value to the future through and efficiency of sustainability reduction, limited consumption of the Zero Waste Initiative practices. The ESB meetings are natural resources, environmental ASELSAN’s works aimed at mitigating held at least once a year with the protection, global warming, efficient environmental impacts are performed participation of relevant persons from use of energy, renewables, zero at Macunköy, Akyurt I, Akyurt II each facility; internal inspections are waste. The effectiveness of these and Gölbaşı facilities in line with carried out accordingly. Furthermore, activities is evaluated by the Senior the ISO 14001:2015 Environmental an environmental handbook is given Management at Management Review Management System. The scope of out to employees for implementation at meetings held during the year. No the Zero Waste Initiative introduced the facilities. environmental accident occurred in in the last quarter of 2019 to this end 2020 thanks to ASELSAN’s robust was expanded and awareness-raising Online environmental training for plans, proactive approach, and practices performed in 2020. Waste 5,038 employees rigorous works. The Environmental Coordinators have been assigned to As an environmentally sensitive Policy is at the core of ASELSAN’s the facilities for the inspection and company, ASELSAN organizes environmental management approach improvement of the implementation of regular online environmental aimed at an inhabitable world for future the Zero Waste Principles. training for employees every year. generations. It is communicated to In 2020, ASELSAN delivered online internal and external stakeholders The Company was performing waste environmental protection training to via in-house communication means sorting and reduction activities prior 5,038 employees. Furthermore, in line and the corporate website. As part to the introduction of the Zero Waste with the ISO 14001 Environmental of ASELSAN’s fight against climate Regulation. Currently, it adheres to Management System and applicable change, the Company undertakes all the practices specified by the laws, drills are organized to ensure efforts with a focus on managing regulation at its facilities. employees know how to take climate and environmental risks necessary action in the case of and reducing carbon emissions, chemical spills and leaks and act while monitoring and reporting its in a prepared manner when faced annual sustainability performance transparently. 114 ASELSAN Sustainability Report 2020 Our Environmental Responsibilities 115
Climate Change Management Responsible and effective management of resources
GHG Emissions from ASELSAN’s ASELSAN collaborates with the Turkish Ministry of Sources Scope 1 Environment and Urbanization and the Turkish Ministry of “Direct greenhouse gas emissions” are calculated as greenhouse gas Agriculture and Forestry as part of its social responsibility emissions from ASELSAN’s sources. towards climate change. Scope 2 “Electricity indirect GHG emissions” are calculated as GHG emissions from consumption of purchased electricity. Firm steps to combat global EMISSIONS AND ENERGY climate change ASELSAN’s GHG emissions Scope 3 are managed in line with the ASELSAN’s GHG emissions are “Other indirect GHG emissions” ISO 14001 and ISO 14064 Striving to ensure responsible and managed in line with the ISO 14001 are calculated as other indirect standards. effective management of the resources and ISO 14064 standards. As specified emissions such as personnel shuttles, it uses, ASELSAN has received the firm in its Environmental Management wastewater, waste disposal, water support of the Senior Management Policy, ASELSAN is committed to supply, use of materials (food, glass, or in the implementation of the ISO mitigating the impacts of global paper from cafeterias), travel (flights), 50001:2018 Energy Management climate change and monitoring and raw material procurement, and highway System, which is a management transparently reporting its greenhouse transport. approach promoting responsible gas emissions. Therefore, sources and efficient energy consumption. of emission at ASELSAN facilities Sustainable Carbon Emissions Accordingly, Energy Management are identified, and greenhouse gas Management System preparatory works were emissions are calculated, reported, The emission calculations at ASELSAN completed at all facilities in April 2021 and validated by an independent firm are performed by using the calculation to obtain the ISO 50001:2018 Energy on an annual basis. In this respect, methodologies specified under the Management System Certificate. internal and external inspections were Guidelines for National Greenhouse Energy management activities pertain performed on the 2020 data in line with Gas Inventories (2006) by the to processes/production, procurement the ISO 14064 standard. Intergovernmental Panel on Climate processes within the Company and Change (IPCC), ISO 14064-1, and the are run in parallel with other integrated ASELSAN is committed to “identifying Greenhouse Gas Protocol: A Corporate management systems. Energy density climate change risks and managing Accounting and Reporting Standard reduction targets set within the scope them in line with applicable laws; (Revised Edition)). The emission factor of the strategic plan are handled by monitoring and tracking, and values used as a reference point in the functions in charge of managing transparently reporting its greenhouse calculations are based on the IPCC ASELSAN aims to reduce Scope 1 and 2 emission intensity by 2022 per unit the existing energy infrastructure at gas emissions to mitigate the impact (2006), the International Energy turnover and by 64.12% per base year, in line with the GHG emission management the facilities. To this end, efficiency of climate change; closely following the Agency’s (IEA) 2015 Report, and plan that is annually updated for CDP Climate Change reporting. studies are performed on the sustainable programs developed in and DEFRA 2020 resources consuming a significant outside Turkey to tackle environmental Scope 1 Scope 2 Scope 3 amount of energy, and the findings are issues, and maximizing the added Data on emissions from ASELSAN’s evaluated via analyzers and software value generated for sustainability.” activities are provided in the table. The 2016 11,999 38,651 5,124 systems. Studies were carried out and thresholds and scope of reporting are 2017 12,420 35,983 15,811 enhancements introduced following ASELSAN’s carbon emission targets expanded every year for sustainable 2018 10,738 37,663 15,000 which areas were determined for are set by the Senior Management development. New functional areas Efficiency Enhancement Projects in line with the strategic goals. A formed at ASELSAN are included in 2019 14,148 37,786 15,661 (VAPs). Planning and investment Greenhouse Gas Management Plan is the scope of reporting and Scope 2020 14,690 42,320 14,170 projects were initiated accordingly. prepared and implemented to reach 3 data is diversified thanks to the In addition, these goals also include the targets. The Climate Change Unit provision of reliable data. In 2020, reduction of emissions, which is a and CDP representatives coordinate works were carried for transition to the ASELSAN’s emission value per unit between January 1 and December 31, 2020,
direct result of the activities performed the activities of periodically reviewing ISO 14064:2018 version set to change was 0.0035 tCO2e/TRY 1,000. to achieve efficiency and reduce energy and improving the practices under the the content of the report. The goal is to • Considering that the emission density calculated for the year 2019 was 0.0040
density. Management Plan. finalize the transition by 2022. tCO2 e/TRY 1,000, an 11.3% year-on-year improvement was attained in 2020.
• The emission density for the base year, 2016, was calculated as 0.0136 tCO2e/ TRY 1,000. This shows that the unit emissions for Scope 1 and Scope 2 GHG dropped by 74.02% between 2016 and 2020. 116 ASELSAN Sustainability Report 2020 Our Environmental Responsibilities 117
Climate Change Management
ASELSAN organizes training on Climate Change Management Emission reduction efforts are supported through a range for its employees and carries out awareness raising activities. of projects such as “intersection controller” and “electric car system development” and “wind turbine development.”
The Company’s energy consumption between the years 2017 and 2020 is provided While the Company monitors emission at ASELSAN. Use of environmentally- Suppliers are also updated in the table below. trends closely, it pays utmost attention friendly materials, emission reduction While carrying out emission- on carbon management to environmental sustainability and through continuous development based studies within the prefers a growth model with minimum efforts in operational processes, during the supplier visits paid Energy Unit 2017 2018 2019 2020 scope of climate change, impact on the environment during its management of environmentally- throughout the year to raise Consumption ASELSAN aims to add value their awareness on this issue. operations. Employees are among the friendly post-production operations, to the environment with A) Nonrenewable MWh 52,295 45,285 47,213 56,507 key contributors to climate change regular inspections on maintenance ASELSAN products. Fuel Purchased management. Accordingly, ASELSAN processes, and efficient energy and Consumed (Natural Gas + undertakes efforts aimed at reducing management systems are key Diesel) greenhouse gas emissions with the principles for the Company. participation of all employees. For B) Nonrenewable MWh 80,110 82,430 81,730 88,169 ASELSAN, efficient use of resources Adopting a responsible production and Electricity Purchased is an indispensable principle for consumption approach, ASELSAN sustainability. Projects to this end runs emission-based works to tackle Total MWh 132,405 127,715 128,943 144,676 are performed by various units with climate change and strives to add value Nonrenewable different functions in coordination with for the environment through sensitive Energy Consumption the Support Services Directorate. In the ASELSAN products manufactured. meanwhile, Transport, Security, Energy, Total Cost TRY 19,782,707 28,240,039 37,589,014 46,121,137 Healthcare, and Automation Systems of Energy Business Sectors regularly conduct Consumed projects and feasibility studies aimed at using renewable energies and clean energy. CDP Reporting with a Score of A- ASELSAN is aware that employees’ ASELSAN places the holistic contributions are critical for Energy efficiency and emission sustainable approach at the core sustainability to be ingrained in the reduction projects rolled out in the of its operations and strategy, as corporate culture and effectively reporting period include replacement demonstrated by the global success integrated with its operations. To this of fluorescent bulbs with LEDs; it attains in the CDP reporting which end, it organizes training courses and installation of a free-cooling system is presented to investors and all awareness-raising events on climate in the cooling group line; air- stakeholders. As per the 2020 change management for employees. conditioning works for air handling reporting results, ASELSAN maintained Activities performed and reports drawn units; modifications to humidifiers; its successful position by scoring A- for within this scope provide input to the and transition to sensor-enabled consecutive years. Management Review meetings, while faucets from manual faucets. These the climate change management all contributed to energy and water Carbon management is among performance of the Company is savings significantly. Acting with the the cornerstones of ASELSAN’s evaluated by the Senior Management. awareness of a responsible producer, sustainability management. Therefore, Suppliers are also updated on carbon ASELSAN also produces products that the Company prepares a greenhouse management during the supplier visits add value to the environment. Emission gas inventory and has external audit paid throughout the year to raise their reduction efforts are supported firms validate its performance on an awareness on this issue. ASELSAN’s through a range of projects such as annual basis in line with the ISO 14064 emission values are validated by “intersection controller” and “electric Greenhouse Gas Reporting Standard. independent organizations. car system development” and “wind turbine development.” Studies are undertaken to evaluate alignment with environmental and climate change before, during, and after production 118 ASELSAN Sustainability Report 2020 Our Environmental Responsibilities 119
Climate Change Management
Neutralization and precipitation methods are implemented As part of the Zero Waste Project, awareness-raising efforts at the Macunköy chemical wastewater treatment plant, while were conducted through information bulletins and various there is a biological package treatment plant for domestic events including contests. waste at the Gölbaşı facility.
meetings. Water recovery systems WATER MANAGEMENT ZERO WASTE MANAGEMENT ASELSAN conducts rigorous for specific production devices help water management activities attain significant water savings. at the Macunköy, Akyurt I, ASELSAN is aware that water Communication efforts to raise ASELSAN manages waste based Akyurt II and Gölbaşı facilities. resources are vital for the continuity awareness on water consumption on the waste management hierarchy of not only its operations but also of include posters, informative notes, and and in a manner to minimize the life on our planet and therefore must campaigns across the Company. environmental impact of the waste be preserved. To this end, its water generated from its activities. The management approach is aimed at Water management practices at hierarchy starts with reducing waste responsible, effective, and efficient use ASELSAN are in full compliance with at its source, followed by reuse and of water in its facilities and operations. laws, as is the case in all environmental recycling, and finally, disposal of waste. activities. Wastewater discharge The Company conducts rigorous standards are set in accordance Waste management activities are water management activities at the with the Regulation on Wastewater in parallel with the ISO 14001:2015 Macunköy, Akyurt I, Akyurt II and Discharge to Sewers by ASKİ Standard, while the designated Gölbaşı facilities. Water is a significant (Ankara Municipality Waterworks). department handles relevant practices input for some of ASELSAN’s Wastewater is discharged from the and reporting as per environmental production areas while playing a Macunköy and Gölbaşı facilities to the regulations. significant role for the Company to Sakarya catchment basin. In 2020, perform administrative and social the Macunköy chemical wastewater Reduced natural resource services in a suitable manner. treatment plant and Gölbaşı biological consumption is the main goal treatment plant discharged 48,705 m3 ASELSAN’s main environmental goal Awareness-raising activities to and 38,418 m3 of water, respectively. is to minimize waste generation and save more water reduce the consumption of natural In addition to water management Neutralization and precipitation resources. The Company regularly efforts under the ISO 14001:2015 methods are implemented at the monitors the amount of waste Environmental Management System, Macunköy chemical wastewater produced at its facilities. In line with the the Company monitors water data treatment plant, while there is a Environmental Policy and management as part of the CDP Climate Change biological package treatment plant for system, the aim is to minimize the reporting. Every year, targets for domestic waste at the Gölbaşı facility. waste generated from production water consumption are determined; Domestic wastewater is discharged activities, sort waste at the source data collected from analyses are directly to sewers at the Akyurt facility. prior to disposal, and thus recover it at presented to the Senior Management Furthermore, chemical wastewater is maximum level. To this end, activities at the Management Review collected in tanks at the Gölbaşı and aimed at accurate and systemic storage and disposal activities are conducts efforts in line with the ISO Akyurt facilities and disposed of by sorting, and appropriate disposal and performed in accordance with waste 14001 Environmental Management authorized companies. recycling of waste are carried out management regulations. Waste oil System Standard and seeks solutions effectively by the Company. Separation classification analyses are carried out to minimize hazardous waste through ASELSAN’s water consumption between the years 2017 and 2020 is provided in of waste by type and temporary by licensed organizations authorized training and awareness-raising the table below. storage of waste does not harm the by the Turkish Ministry of Environment activities. Goals were set in 2020 for environment and put occupational and Urbanization and accredited by hazardous waste to add value to the health and safety practices at risk. Water Consumption Unit 2017 2018 2019 2020 TÜRKAK. environment by reducing all types of Waste is categorized under the classes waste. In 2021, ASELSAN will work Total Municipal Water Million 0.327 0.378 0.34 0.38 of hazardous, non-hazardous, medical, As with non-hazardous waste, determinedly to reduce the amount of Used (Or Water from cubic and packaging waste, while separate other Providers) meters reduction of hazardous waste is hazardous waste by 1% year-on-year storage areas for each type of waste among the principles of integrated in proportion to the turnover. are available at all facilities. Waste management systems. The Company 120 ASELSAN Sustainability Report 2020 Our Environmental Responsibilities 121
Climate Change Management
Prior to the final disposal of those radioactive materials not planned for use, they are transferred to the radioactive material storage area, which is located far from the working spaces and equipped with checkpoints in entries and exits.
ASELSAN Radiation Emergency Plan In 2020, a total of Particular processes are followed in working with radiation and waste management. 1,862,000 kg of waste was Personal dosimeters are provided to the staff members working with radioactive sorted at the Macunköy, devices if deemed necessary by the Turkish Energy, Nuclear and Mineral Research Akyurt, and Gölbaşı facilities. Agency (TENMAK). All associated activities are governed by the ASELSAN Radiation Emergency Plan. Prior to the final disposal of those radioactive materials not planned for use, they are transferred to the radioactive material storage area which is located far from the working spaces and equipped with checkpoints in entries and exits. Relevant procedures are implemented by respective Environmental Officers for the disposal of radioactive materials separated as scrap.
The tables below provide the total amount of waste produced in 2020. Recyclable metals and packaging waste are monitored regularly under the non-hazardous waste class.
In 2020, a total of 1,862,000 kg of waste was sorted at the Macunköy, Akyurt, and Gölbaşı facilities.
Facility Hazardous Non-hazardous Total Waste (kg) Waste (kg) Gölbaşı 27,137 317,593 344,730 Akyurt I 180,817 242,210 423,027 Akyurt II 29 20,963 20,992 The stations helped the Company sort • The composting machine installed at ASELSAN achieved the goal set Macunköy 218,448 854,802 1,073,250 the following types of waste: ASELSAN helps turn biodegradable for 2020, by attaining a 15% year- Total 426,431 1,435,568 1,862,000 - Biodegradable waste, waste collected in Waste Separation on-year reduction in overall waste - Paper waste, Stations and vegetable waste thanks to all the efforts undertaken. In 2019, ASELSAN initiated the Zero Waste Project for efficient use of resources, - Plastic waste, generated from cooking activities into In 2020, added value of the Zero prevention of waste, minimization of waste generation, and waste recovery, in - Glass waste, compost. Waste initiative generated for the addition to the existing waste management practices at the Company. The scope of - Metal waste, and • Eliminating Use of Paper Cups: Use environment was analyzed. As a result this project was expanded through awareness-raising activities in 2020. - Other waste. of paper cups in working spaces of awareness-raising activities and the was eliminated to minimize the responsiveness of the ASELSAN staff: The following activities were carried out under the Project: • In addition to waste sorting stations consumption of natural resources. 1,315 trees were introduced to nature; • Face-to-face training was delivered to cleaning and refectory staff; employees at offices and working spaces, Paper cups were replaced with energy savings amounted to 870,756 were briefed via announcements and brochures. container boxes for waste batteries, glass tumblers and porcelain mugs kWh, and oil savings amounted to • Waste separation stations were placed at the Akyurt, Gölbaşı, and Macunköy electronic waste, and vegetable distributed to all employees. 1,503 barrels in line with the Zero refectories, which started separating plastic and other waste. After separation, oil, as well as clothing and toy bins • Collecting Pharmaceutical Waste: Waste Principles. waste food on trays is donated to animal shelters. are placed at facility entrances and Pharmaceutical waste bins were • Container bins at working spaces and offices were removed and replaced by parking lots. placed at infirmaries to prevent Furthermore, 9,299 clothing items, waste separation stations at designated common use areas. inaccurate use of medicinal drugs 596 pairs of shoes, and 1,768 toys that are expired, damaged, or collected in clothing and toy bins were contaminated. donated. 122 ASELSAN Sustainability Report 2020 Our Environmental Responsibilities 123
Climate Change Management Green Solutions in Operations
The Environmental Officer is in charge of obtaining, updating, Motion sensor-enabled faucets are preferred and existing and renewing necessary environmental permits, licenses, and faucets are equipped with these sensors to save water. documents for facilities and activities.
In order to gain further effectiveness ASELSAN prioritizes green solutions in ENVIRONMENTAL COMPLIANCE in these activities, the Dangerous INFORMATION SYSTEMS Thanks to ASELSAN’s Efficiency enhancement its facilities’ technology infrastructures Goods Safety Software was integrated sensitivity for environmental activities are conducted for and building designs. Projects and ASELSAN is in constant interaction with the core system. Furthermore, ASELSAN believes that environmental compliance, the Company lighting fixtures to maximize practices are developed to promote the with the environment due to environmental impact assessments sustainability can be achieved by, did not face any infringement the benefits of daylight. use of ecological products, reduce the the nature of its operations and are regularly carried out for all first and foremost, using all resources penalty or punitive sanction Efficiency is also attained consumption of conventional energy therefore always manages them operations, while attention is paid to efficiently and effectively, and under the Environmental Law through sunshades to reduce resources and contribute to efficiency. in 2020. in full compliance with laws and the environmental impact management the power needed for air- determines its efficiency targets in In this respect, comprehensive surveys regulations. ASELSAN is aware that approach and performance of suppliers conditioning units in façades business processes accordingly. Since are conducted, while efficiency environmental compliance efforts in selection processes. that receive sunlight. the Information Systems Management enhancement activities are planned must be undertaken by considering approach is based on such efficiency and carried out. the needs of all stakeholders. To The Environmental Officer is in charge targets, the Company prefers this end, it has adopted the ISO of obtaining, updating, and renewing environmentally-friendly systems with The biological treatment facility at 14001:20015 Standard for compliance necessary environmental permits, minimum environmental impact when Gölbaşı facility is optimized to ensure with environmental laws and other licenses, and documents for facilities it purchases IT hardware. It also strives recovery of wastewater. Projects aimed requirements during these efforts. The and activities. The Environmental to reduce energy consumption with a at solar power are designed. Efficiency Company also briefed suppliers on this Officer also issues monthly focus on the Green IT principles in data enhancement activities are conducted topic during the visits paid in 2020 and evaluation protocols and reports the center design. for lighting fixtures to maximize the encouraged all stakeholders to reach environmental status of the facility to benefits of daylight. Efficiency is also environmental compliance. the Facility Officer. An Environmental Data Center Project attained through sunshades to reduce Performance Report, which covers the As part of the Data Center Project, the the power needed for air-conditioning Management of hazardous substances activities in the previous year, is drawn Company aims almost 100% availability units in façades that receive sunlight. is critical to guarantee environmental at the end of every year and presented in line with the international Tier 3 Projects are devised for designs that compliance. This is why the Company to the Senior Management. standard. Deployment of measurable will help recover waste heat in existing receives consulting services to fully and controllable data centers helps and new buildings. Motion sensor- perform its obligations under the Thanks to ASELSAN’s sensitivity attain significant energy savings, enabled faucets are preferred and Agreement concerning the International for environmental compliance, the reduce greenhouse gas emissions and existing faucets are equipped with Carriage of Dangerous Goods by Company did not face any infringement reach compliance with the Green IT these sensors to save water. Attention Road (ADR) and the Regulation on the penalty or punitive sanction under the Benchmark. is paid to energy efficiency features Carriage of Dangerous Goods by Road. Environmental Law in 2020. in buying or selecting systems and Secure Print System devices. Based on the principle of The Corporate Electronic Document Energy Efficient Designs, ASELSAN Management System (EDMS) prioritizes green building designs in minimized printed correspondence at new buildings. ASELSAN in 2019. In the meanwhile, the secure printing system in use centralized printers and their management/maintenance, which ensured security, savings, and efficiency. The Company also started to monitor printer printouts regularly to prevent unnecessary inessential printing of documents. Activities intended to reduce carbon emissions in printers were performed separately. 124 ASELSAN Sustainability Report 2020 Our Environmental Responsibilities 125
Green Solutions in Operations
Integrated communication and video conference systems were Efforts for the ISO 50001:2018 certification continued for deployed in business processes, which minimized the travel ASELSAN as led and coordinated by the Infrastructure and between facilities and helped reduce emissions resulting Facilities Directorate for the purposes of managing energy from travels. consumption, ensuring more efficient use of resources, and fulfilling legal and social responsibilities in the field of energy.
FACILITY MANAGEMENT Maintenance, repair, and revision work Energy Officers are appointed on heating&cooling devices, ventilation at facilities’ Technological devices, pressure air, vacuum, aspirators, For ASELSAN, a sustainable Infrastructure Directorates steam humidifiers, process coolers, management approach is a priority to constantly monitor energy treatment devices, transformers, UPS and both in its activities and management efficiency, which is among generators, CCTVs, the entrance control the core objectives of facility of all facilities. Within this scope, Energy system, fire detectors and extinguishers, management. Officers are appointed at facilities’ illumination, lifters, and conveyors are Technological Infrastructure Directorates carried out in a systemic manner as part to constantly monitor energy efficiency, of the operation, maintenance, and repair which is among the core objectives of facilities’ technology infrastructure. of facility management. The Energy All these systems are managed via the Management Team brings in a systemic Building Management System (BMS) and and inclusive approach to energy Integrated Data-Driven Supervisory Control management activities, which are run in and Data Acquisition System (SCADA) line with pre-defined goals and targets infrastructure that are inter-connected based on the principle of continuous and capable of detecting the environment development. via sensors, performing data analytics, and identifying requirements. This is how Efforts for the ISO 50001:2018 organizational processes are managed certification continued for ASELSAN proactively to monitor consumption values as led and coordinated by the and take prompt action to prevent any loss Infrastructure and Facilities Directorate of energy and water. The purpose here is Efficiency with information systems paper significantly. The transition of a for the purposes of managing energy to help establish traceable and measurable New business processes Virtualization of ASELSAN’s IT significant amount of workflows to the consumption, ensuring more efficient smart systems. Furthermore, information on were moved to the Electronic infrastructure contributed to the flexible electronic environment also helps our use of resources, and fulfilling legal energy consumption is shared with internal Document and Workflow use of resources, high availability employees use their time efficiently and social responsibilities in the field of stakeholders regularly. Systems, enabling the rates, and efficient utilization of IT while contributing to the progress energy. An inspection was completed Company to reduce the use of resources. Automatic deactivation of toward the “Zero Paper” goal. and certification was obtained in April “Predictive Maintenance” methods are paper significantly. the systems not in active use reduces 2021. In addition to the infrastructure followed in all maintenance activities energy consumption significantly. As for The establishment of an Energy and documentation for the energy to detect failures and ensure business hardware units purchased, ASELSAN Management Team was the initial management system, training and continuity with early interventions. chooses products/providers that place step for efforts towards an ISO awareness-raising activities were also Measurement and analytics devices used importance on recycled materials with 50001 certification. Representatives completed at all facilities. A suggestion to this end include thermal cameras, minimum impact on the environment in of all business sectors and other system was established to ensure active thermometers, moisture meters, terms of carbon footprint and chemical relevant functions are involved in participation in the contributions to conductivity/grounding meters, ph.-meters, effects. this process led by the Infrastructure energy efficiency from employees and and vibration meters. Efforts are undertaken and Facilities Directorate to manage subcontractors. Active participation of all to adopt the principles of “Total Productive Integrated communication and video energy consumption, ensuring more Business Sectors, as well as the energy Maintenance” as an integral element of the conference systems were deployed in efficient use of resources, and fulfilling efficiency in ASELSAN’s infrastructure, corporate culture. As for new investments, business processes, which minimized legal and social responsibilities in the repair-maintenance, construction, devices are selected and systems the travel between facilities and helped field of energy. Accordingly, energy- production, and testing processes, installed with utmost attention to prefer reduce emissions resulting from dense areas and consumption points will be handled pursuant to the Energy energy-efficient, high-performance, and travels. New business processes were were identified; regression tests were Management System. automatically-controlled devices (energy- moved to the Electronic Document performed, and annual efficiency efficient procurement) and minimize human and Workflow Systems, enabling measurements were carried out Reference practices in relation to error. the Company to reduce the use of through the reference lines created. infrastructure are now being rolled out at all facilities. 126 ASELSAN Sustainability Report 2020 Our Contribution to Social Development 127
Green Solutions in Operations Our Contribution to Social Development
Facility-critical clean zones and server rooms are operated as As for healthcare, ASELSAN covers the cost of medicine, per the ISO 14644-1 and ISO 27001 standards, respectively, surgical operations, treatment, prosthetic implants, and while the requirements of these standards are met at an healthcare equipment for those families in need. optimal level.
LED-equipped fixtures, motion sensors, environmental responsiveness into Construction plans are preparation sets to support students’ local lighting techniques, as well as account, efforts are made to protect Anyone including ASELSAN developed by taking development. Meanwhile, the Alimhane central compensation at transformers and and even expand green areas. Smoke- staff and suppliers within environmental responsiveness Project, launched for the first time in building insulation works all contribute to free air initiatives are run at all facilities. ASELSAN’s ecosystem into account, efforts are made the Ankara Scientific High School, is energy optimization. Regular monitoring, In this regard, smoking areas have can make donations to the to protect and even expand intended to help high potential students inspection, control, and awareness-raising been marked and restricted to pavilions ASİL Foundation via the green areas. The ASELSAN Social Innovation acquire the sense of achieving together activities are conducted to minimize designated in certain areas. Foundation’s website (www. Leaders (ASİL) Solidarity and preparing them for an engineering energy faults and losses in the systems. asildernegi.com.org) if they Foundation career based on a collaborative model In addition, steps are taken for energy- Some of the key services provided in wish so. The ASELSAN Social Innovation that empowers them to develop their efficient system design and practices as light of our superior quality mindset are Leaders (ASİL) Solidarity Foundation projects. well as for renewable energies in heating, as follows: was established in November 2019 cooling, and pressure air systems. as a platform that acts with a social As for healthcare, ASELSAN covers the • Facility and industrial safety responsibility awareness to reach cost of medicine, surgical operations, Facility-critical clean zones and server • Fire and rescue services every individual in need in and outside treatment, prosthetic implants, and rooms are operated as per the ISO 14644- • Cleaning and environmental planning the Company, stand by them in their healthcare equipment for those families 1 and ISO 27001 standards, respectively, • Kindergarten facilities difficult times, and demonstrate that in need. Families in need are identified while the requirements of these standards • General documents and cargos ASELSAN does not only produce by relevant teams. Their needs are are met at an optimal level. • Shipment services reliable technologies but also offers clarified during one on one meetings • Personnel food service from kitchen technologies that create value. with the hospital and physicians. Administrative services of outstanding to table Assistance is provided in line with quality standards at ASELSAN • Healthcare services While the ASİL Foundation’s focus priorities. Recent developments are always • Hygiene activities areas are education, healthcare, monitored to provide all services in a • Sports activities family, and humanitarian aid in As for activities aimed at families, manner to address the requirements • Transportation and shuttle services natural disasters, it periodically rations made of essential food items accurately and promptly. Construction • Hosting delegations-guests carries out campaigns and reaches are provided to those families in need; plans are developed by taking • Creation of new social spaces for the out to individuals in need via these food cards are issued to meet their staff campaigns. Since its establishment, grocery needs during Eids; alms are the Foundation supports scientific given during Eid-Al-Fitr; children’s projects, schools in need, and children clothes are sent for Eids; boots and expecting coats and boots. It takes on coats are distributed for winters, and the task of meeting the urgent needs essential household items are delivered of people and delivering whatever is to help the families lead a life at home. needed promptly when Turkey suffers a Distributions are directly made to those disaster or pandemic. families by professional teams.
Education projects include construction Teams made up of volunteering of schools in the regions in need to ASELSAN staff are involved in the provide students with space where process to carry out these activities. they can get an education; construction Anyone including ASELSAN staff of computer classes and libraries to and suppliers within ASELSAN’s meet students’ needs; provision of ecosystem can make donations to the design skills workshops to schools; ASİL Foundation via the Foundation’s and distribution of robotic coding website (www.asildernegi.com.org) if sets, stationery supplies, and exam they wish so.
128 ASELSAN Sustainability Report 2020 Our Contribution to Social Development 129
Our Contribution to Social Development
The collapsed kindergarten in the village of Kurucaova in Malatya’s Doğanşehir district was rebuilt by ASİL Foundation. ALİMHANE Project ALİMHANE was launched as a project at the Ankara Scientific High School as part of the activities of the ASİL Foundation. ALİMHANE is aimed at helping high potential students acquire the sense of achieving together and preparing them for an engineering career based on a collaborative model Activities of the ASİL Foundation • 250 rations were distributed to that empowers them to develop TRY 200,000 were donated The ASİL Solidarity Foundation was civilians who suffered the flood that their projects. The model consists to the National Solidarity established as a result of the joint hit the Black Sea region. of three stages, namely, “Dream,” Campaign, “We’re Self work of ASİL Foundations and Social • Three EBA (Educational IT Network) “Prepare,” and “Act” (“DPA”). This Sufficient Turkey.” Responsibility Working Groups. Support Points were placed in three is how ALİMHANE helps students After the application at the Ankara villages. dream first to conceive an idea, receive Governorship’s Provincial Directorate • Sleeping bags, camping stools, Events and contests were instead messages to demonstrate national mentoring support to learn more on for Relations with Civil Society was lighting equipment, and wood organized on digital platforms. Techno- and local development. ASELSAN- their respective topic, develop a project approved, it was officially established heaters were donated after the Adventure continued to meet with branded products will help create for these ideas, and then develop their on November 21, 2019. The earthquake in İzmir. children through two monthly blog an ecosystem led by ASELSAN that products in a laboratory environment. Foundation has activities in the fields • As for healthcare, wheelchairs, posts, three contests, five posts, boasts high brand visibility. The store of Family Assistance, Scholarships, battery-powered chairs, upright 15 interactive story-telling sessions, will also strive to heighten the brand Techno-Adventure Platform School Assistance, Healthcare bikes, as well as medicine and and one video named “Talking in the perception and thus shorten the Techno-Adventure is a corporate Assistance, and Support for Stray medical equipment were provided to Language of Children.” distance to target groups in line with volunteering project with a mission to Animals. support those families in need. the corporate mission, while supporting equip new generations with appropriate • “Charity on the Hanger Request and ASELSAN 1975 local production, integrating brands and beneficial habits in the technology, The year 2020 gave rise to a Donor Portal” was developed for In 1975, four engineers made a dream with national values and science, IT, and defense industry. This way, responsibility that ASELSAN eagerly the needs outside those categories. come true thanks to the donations of and providing aid to those in need the project aims to encourage them assumed as a socially responsible Individuals who wanted to provide our nation. ASELSAN has since then through the funds raised via the ASİL to become curious, inquisitive, and corporate citizen to tackle emerging aids were matched with those in been striving to utilize domestic and Foundation. productive individuals, as required by pandemics and the heavier impact need on this system. national resources to pioneer R&D and our era. Targeting children aged 6-12, of earthquakes and disasters. Steps • To raise funds for all these activities, technology in Turkey. The Company Social Responsibility the project is designed to help children taken towards unity and togetherness three cafés, five cafeterias, and has added value to Turkey and ASELSAN conducts projects to acquire technology and coding literacy, in the face of trying times turned into one corner café at ASELSAN’s provided trust to the nation through extend social opportunities for social understand the importance of local and socially beneficial projects thanks to the Macunköy, Akyurt and Gölbaşı unique products and qualified human welfare and scientific activities for national production, gain awareness ASİL Foundation. In this respect, the facilities have begun to be operated resources for the past 45 years. Aware social development. It also supports and self-confidence, improve their ASİL Foundation initiated a series of by the ASİL Foundation. of the nation’s great expectations from institutions to contribute to society. To skills to develop ideas, and boost their important projects in 2020. it, ASELSAN continues to work with this end, the Company established imagination through the skills they • TRY 271,150 were raised with the “Charity on the Hanger Request all its might to deliver more benefits. a Donation and Aid Policy, which is acquire in real life. Elazığ-Malatya Earthquake Aid and Donor Portal” Project The flagship of Turkey on international available to the public. As per the Campaign. “Charity on the Hanger Request and platforms, ASELSAN desires our nation Donation and Aid Policy: From the opening ceremony held on • The collapsed kindergarten in the Donor Portal” was developed to help to carry this inspiring and bright name April 24, 2019, to March 2020, Techno- village of Kurucaova in Malatya’s meet essential needs identified by the on its chest. Therefore, ASELSAN Cash donations and aids can be Adventure attended events such as Doğanşehir district was rebuilt. teams that are outside the scope of 1975 online and physical stores were provided to institutions, organizations, Teknofest and Konya Science Festival, • Medical equipment was delivered the Foundation’s activities. Under this launched on November 17, 2020, for foundations, and associations involved reaching thousands of children. It also to 21 hospitals in Turkey during the project, specific needs are published Turkish people. in scientific research and development paid visits to schools and shopping COVID-19 pandemic. on the network with details. Individuals activities; organizations and similar malls and organized events in various • TRY 200,000 were donated to the who would like to help meet these With ASELSAN 1975 store, the goal entities established for social purposes; provinces of Turkey. National Solidarity Campaign, “We’re needs can choose them on the portal, is to deliver on the requirements of construction of schools or healthcare Self Sufficient Turkey.” reach out to those in need and directly its founding purpose and maintain facilities for the common good; and In March 2020, physical events were • Rations were delivered to 2,000 meet them. In addition, families in need sustainable growth through the other activities that the Company may suspended as part of the fight against families in need during Ramadan. are identified and matched with donors values generated and provided for consider beneficial. Donation plans the COVID-19 pandemic. • Prior to Eid Al-Adha, some 2,000 who would like to provide in-kind aid as consumers on the global market. and the upper threshold for donation children were provided with clothes part of this project. ASELSAN 1975 is set to serve as a amounts for the year are determined for Eid. preferred, trusted, and environmentally at the General Assembly meetings; and socially responsive store that donations are made upon the decision offers innovative designs and delivers of the Board. 130 ASELSAN Sustainability Report 2020 Our Contribution to Social Development 131
Our Contribution to Social Development • 1,424 suggestions were received accompanied by a group of • On February 11-14, 2020, the by September 17, 2020, in this mountaineers. The climb took place ASELSAN Techno-Adventure team met system. 1,089 of them were found in extraordinary conditions involving with children in the Ahlat district of Bitlis to be feasible and put into practice. weather at -29°C, in addition to heavy and Erciş district of Van. Children played Suggestions were mostly aimed snow, wind, and thick fog. Employees the “Code Name: Asel” and “Make your As part of its social responsibility investments, at improving processes/enhancing adhered to the principle of leaving Own Story” games, understanding the efficiency and boosting employee only their personal footprint on nature importance of algorithmic thinking. The ASELSAN took on the construction of ASELSAN Akyurt motivation. while climbing Turkey’s fifth highest plan is to continue this outreach event mountain with 3,917 meters. in the regions that need development Mosque, which is located outside the Company’s • After the outbreak of the COVID-19 • 12 hours of rock climbing on and meet with more children. pandemic in March 2020, 433 (43%) Demirkazık Peak, coupled with 6 premises and open to all visitors. of the suggestions shared were aimed hours of descending including five • 62 children joined the qualifiers for the to address the COVID-19 pandemic. ropes, were completed by ASELSAN Techno-Adventure Choir aimed at the 253 of the suggestions (59%) employees successfully (a total of 18 children of ASELSAN’s employees on related to COVID-19 were handled hours). The research found that the February 16, 2020. 31 children were Contributing to communities’ Working groups have been formed as at the Development Workshop route for this climbing activity was the selected as per the evaluations of In 2020, employees and their social development is a primary per their impact area and each of them and all COVID-19 suggestions first climbing and reports were made trainers from the General Directorate families were offered exclusive duty for ASELSAN, which has also performed the following activities under were communicated to relevant to relevant authorities. of State Opera and Ballet in Ankara. discounts and benefits thanks disseminated this culture across the the umbrella of ASİL: departments promptly. Certificates • ASİL Football club was crowned Although the Techno-Adventure Choir to partnerships with 55 Company. In this regard, ASELSAN of appreciation were presented to champion in the Business Cup was established with these children, companies. th th employees support the yearly Blood “ASİL Advantages” the owners of the 500 and 1000 Tournament. The team represented activities had to be suspended due to Donation campaigns of the Turkish • In 2020, employees and their families suggestions for their contributions Turkey and ASELSAN successfully the COVID-19 pandemic. However, the Red Crescent Society and help them were offered exclusive discounts and to the system. Certificates of in the Euro Cup Tournament held in members of the Choir went before the replenish blood reserves. Employees benefits thanks to partnerships with appreciation were also presented to Antalya on October 15-19. cameras to celebrate April 23 National also support the ASİL Foundation’s 55 companies. the Business Sector / Vice Presidency Sovereignty and Children’s Day. The solidarity campaigns with their • Ailem ASELSAN (My Family with the broadest participation Foundation Group resulting video was shared on all the voluntary contributions and donations. ASELSAN) was developed as involving the highest number of • Together with the Social Responsibility social media platforms of ASELSAN. a website and mobile app for suggestions from various employees. Group, fundraising, and charity work ASELSAN Akyurt Mosque employees and their families. It was commenced on ASİL Foundation’s Gücümüz Bir (Powerful Together) As part of its social responsibility launched on January 27, 2020, Arts Group website at www.asildernegi.com.org Group investments, ASELSAN took on the to have stronger communication • In 2019, the ASİL Orchestra, ASİL on January 6, 2021. The platform is an interactive development construction of ASELSAN Akyurt with employees and their families. Theater Group, ASİL Turkish Classical platform with a target group composed Mosque, which is located outside the Ailem ASELSAN is a platform Music Choir, ASİL Turkish Folk Music, Children of the Future Group of ASELSAN’s existing and potential Company’s premises and open to all where employees can reach a and ASİL Folk Dances Groups • www.teknomacera.com was rolled out suppliers. The platform serves via visitors. This way, it met the need for host of contents including benefits, performed in numerous concerts as a free-of-charge digital education a corporate website and mobile a mosque in the Akyurt facility and its employee suggestions and articles, and shows. These groups had to platform and launched on April 24, applications. It went live on April 13, 2020. vicinity. The ASELSAN Mosque located “Family Conversations” held with end practicing due to the COVID-19 2019. In addition to this website in the plot neighboring ASELSAN’s Senior Managers, and the latest pandemic. featuring educational games, videos, Gücümüz Bir in Numbers: a 70% Akyurt Facility in Ankara was opened news from ASELSAN, and much • In 2020, the ASİL Book Club was and blog posts, social media accounts increase in the applications for on November 12, 2020, in a New more. It spurred great interest among formed to help employees get to were also created for the platform with localization brochures Systems and Facility Inauguration employees and strengthened the know one another and spend quality new posts being released there. • 2,320 CVs filed by applicants who Ceremony with the participation of sense of unity that one feels in the time together. prefer to work at ASELSAN’s approved President Recep Tayyip ERDOĞAN. “family” of ASELSAN. • Although there was no chance to • ASELSAN Children attended the supply industry firms organize collective events during Winter School Program organized by • 107 candidates outreached by the firms ASELSAN Social Innovation Business Excellence Group the COVID-19 pandemic, activities the University of Turkish Aeronautical via the Human Resources (HR) module Leaders (ASIL) • “Gelişim Atölyesi” (Development of various groups such as that of Association on January 27 - 31, • 200 daily visitors on average On March 20, 2019 ASİL (ASELSAN Workshop) Suggestion System the book club continued on online 2020. Children took a small step into • Total 50 training sessions in six Social Innovation Leaders) was was introduced in 2019 involving platforms. the world of robotic coding learning categories (viable sessions from established as a platform chaired the active participation of “Industry about applications such as scratch among a BİL-GE courses are regularly by the Corporate Governance Vice Analysis” and “Business Excellence” Sports Group and tinkercard and found the chance transferred to the platform). Presidency to help the Company working groups. The Development ASELSAN employees come together in to develop different skills in model adapt to the changing and evolving Workshop is operational as a the communities under the umbrella of aircraft workshops during the program In addition, developments are underway world, contribute to its perception platform whereby employees can the ASELSAN Social Innovation Leaders designed to enable children to spend to help sell idle materials to suppliers and and brand value, identify the areas share suggestions and take part (ASİL) Platform and organize sports their mid-term break with productive increase the efficiency of localization and needed by stakeholders in and outside in the implementation of their events to boost employee motivation and entertaining activities. ASELSAN HR modules. ASELSAN to develop projects and suggestions regarding enhanced and interaction. employees will continue attending to involve employees in all project- efficiency, improved working these kinds of programs as they are Those viable sessions from among related processes to elevate this conditions, higher quality and • Employees represented ecological organized with the understanding that a BİL-GE courses are broadcast on the sense of achieving together across the lower costs, developed business ASELSAN during the 14-hour winter employees and their families are part Gücümüz Bir Training Platform. Company. processes, higher safety, and a more climb on Mount Erciyes including of the broader ASELSAN family. distinctive ASELSAN image. a night’s stay on the mountain Proudly produced by FİNAR. www.finarkurumsal.com Mehmet Akif Ersoy Mahallesi İstiklal Marşı Caddesi No: 16, 06200 Yenimahalle-Ankara, Turkey Phone: +90 (312) 592 60 00 Fax: +90 (312) 354 13 02/+90 (312) 354 26 69
www.ASELSAN.com.tr
@aselsan @aselsan ASELSANTV ASELSAN_resmi