Sustainability Report Sustainability

2017 CONTENTS 84 82 78 77 70 68 64 64 58 48 41 36 35 28 27 24 22 20 18 15 14 13 10 06

Governance Governance

A Message From The President And Chairman Of The Executive Executive The Of Chairman And President The From A Message Contributing to the Development of the Profession Engineering Committee Local Employment Meeting the Needs of Communities for Infrastructure and Superstructure and Infrastructure for Communities of Needs the Meeting Developing Communities R&D and Innovation Customer Satisfaction Services and Products of Quality Risk Management Responsible Supply Chain Management Ethics and Compliance Stakeholder Engagement Sustainability Management Policy Sustainability Priorities Sustainability Business Good Doing 2017 In Received Awards 2017 in Developments Important Performance Financial ENKA About Values and Vision Mission, Our ENKA About Report the About CONTENTS 163 155 149 140 132 130 129 119 115 110 106 105 92 90

Community InvestmentCommunity UNGC Index Index Content GRI Management Waste Change Climate and Efficiency Energy Water Management Environmental Management Reducing Environmental Impact Work at Safety and Health Employee Training and Development Satisfaction Employee and Rights Employee Employee Demography Caring for Employees Assessment Impact Socio-Economic ENKA SUSTAINABILITY REPORT 2017 2017 ENKA SUSTAINABILITY REPORT

A Message From The President And Chairman Of In the year in which we celebrated our 60th anniversary, we set out on a journey of sustainability restructuring. The Executive Committee

have developed in accordance with ENKA’s decisions it has taken and the operations it fields of influence and the global Sustainable is conducting, ENKA is now aiming to con- Development Goals, rests on four principal tribute to the agenda of the UN Sustainable foundations: Development Goals. Accordingly, ENKA signed the UN Global Compact on 17th • Doing Good Business November 2017, and pledged to act in ac- Dear Stakeholders, cordance with its ten fundamental global • Caring for Employees principles. We have also linked our sus- ENKA İnşaat ve Sanayi A.Ş. (ENKA) has tainability policy and strategy to the UN successfully completed 60 years in busi- • Developing Communities Sustainable Development Goals. ness, maintaining its entrepreneurial spirit, • Reducing Environmental Impact and constantly growing and adding value I can state with confidence that we are car- to the communities around us. With the Details of the targets which ENKA and its rying out our projects and other activities in support of our employees and all our other group companies have set under each of accordance with our quality, safety at work stakeholders, we have always conducted our these headings, and of the activities carried and environmental management systems, activities within the spirit of our corporate out up to now, can be found in the following which constitute the most basic require- values of integrity, trust, ethics, innovation, pages. ments of sustainability and ensure that they 6 solidarity and sustainability. are completed safely and in conformity with 7 With its activities in Turkey and around the our zero-accident target. In the year in which we celebrated our 60th world, ENKA has been shaping the sectors in anniversary, we set out on a journey of sus- which it operates for 60 years. It has done so Safety at work has always been an important tainability restructuring. Our aim was to without compromising its principles in terms value for us. Following many years of effort, systematise our responsible management of ethics, quality, safety at work and the en- I can say that safety at work has been inter- approach, deepen it and root it in interna- vironment. Using the right human resources nalised within ENKA at all levels. The system tional standards. Under the leadership of the and the right infrastructure, it has brought which we have established for safety at work Sustainability Committee which we formed, its engineering work based on science and encompasses both proactive and reactive we have developed a sustainability policy technology through all stages from design approaches. I would like to inform you that and strategy with the engagement of all our to delivery. It has shared the power of the we are continuing to improve this system stakeholders. Furthermore, we have begun energy produced by the plants it has built every day by learning from the accidents to internalise the spirit of responsible man- and operated with the world. which we experience, conducting effective agement -which is at the heart of sustaina- training activities, establishing open chan- bility- at all the functions of the company. As ENKA was established and grew as a family nels for communication and continuously we carry out our activities in various sectors company and has succeeded in becoming monitoring these systems. – among them engineering and construction, one of the world’s most important corpo- FOTO gelecek energy, real estate and commerce – and in rate companies. Achieving targets through The “zero accident” target, which we have widely varying locations, we have committed a stable management approach, it has pro- adopted to ensure that our employees re- ourselves to serve sustainable development. gressed by continually setting itself new turn safe and sound to their homes and The ENKA Sustainability Strategy, which we targets. With its Sustainability Strategy, the families also encompasses the philosophy ENKA SUSTAINABILITY REPORT 2017 2017 ENKA SUSTAINABILITY REPORT

One of our highest-ranking corporate principles at ENKA is to contribute to the development of the countries in which we operate and to raise their standards of living.

of doing “zero harm” to the environment activities. ENKA Foundation aims to support national and international competitions. We We are proud to see that awareness of in all the locations where we operate. We and accelerate Turkey’s development in all of also have about 700 young candidate ath- working on the basis of global principles is are constantly working to reduce the envi- its activities, through the institutions it man- letes who are being trained within the ENKA growing among the business community ronmental impacts of our activities out of ages in the fields of education, sports and family to be the champions of the future. At in general, and particularly among our em- respect for the natural resources of the re- culture, which are the most basic needs of this point, I would like to share some impor- ployees and suppliers. We have developed gions where we are working. To control the life. Projects we support and our regular pro- tant facts with you: At the Rio Olympics in the report which you are now reading in a potential environmental impacts, we carry grammes seek to benefit our country by pro- 2016, 22 out of 103 athletes in the Turkish spirit of transparency and accountability out detailed environmental impact assess- viding sustainable and reproducible models delegation were from ENKA. Similarly, ENKA in the framework of the Global Compact ment analyses at the initial phase of all of that can be served as “best practices”. provided 17 of the 114 athletes from Turkey Progress Report and the Global Reporting our projects. Following these analyses, we who took part in the London Olympics of Initiative (GRI) standards. We intend to work develop Waste Management Plans with the The following units operate under the ENKA 2012. I believe these to be crucial indicators with you to develop our reporting further in basic aim of eliminating or reducing wastes Foundation: the ENKA Sports Club, which that the Foundation has fulfilled the aims for the following years and we would like to con- at their sources. Through our environmental was established in the same year as the which it was established. tinue to share these reports as we broaden its procedures and inspection programme, we Foundation itself; Istanbul ENKA Schools, scope. We wish to always see you alongside monitor our environmental performance which was inaugurated in 1996; Adapazarı ENKA schools believe that every child has us, through this long and pleasant journey. regularly and seek to put any necessary im- ENKA Schools, which opened immediately the right to benefit from sporting, educa- provements into practice promptly. In this after the 1999 earthquake and was estab- tional and cultural events. Operating under 8 9 spirit, we have worked on and implemented lished precisely to provide education for the umbrella of the Foundation, they con- efficiency measures to improve the produc- children affected by the earthquake; the tinue to be the hope of thousands of chil- tivity of our power plants in Turkey, resulting ENKA Vocational and Technical Anatolian dren for a secure future. I would like to take in lower levels of emissions, improved per- High School, which started up in 2008; the this opportunity to state that ENKA Schools formance and greater operational flexibility. ENKA Science and Technology High School, have come to be regarded among the most which began operating in 2014, and the respected educational institutions at home One of our highest-ranking corporate prin- ENKA Culture & Arts unit. All of these institu- and abroad due to their top-quality facilities ciples at ENKA is to contribute to the devel- tions, and all those who belong to them, are and the educational services they provide. opment of the countries in which we operate striving to share their experience and make Our approach to community investment is and to raise their standards of living. In line the related opportunities available to society an inseparable element of our corporate with this principle, we make sure that every at large. values and the way we work. We will con- activity, which we plan and implement cre- tinue to work hard to ensure that this ap- ates a positive and permanent asset for the Our Sports Club started out with the slogan proach is reflected in our activities in the regions in which we are present, and favour- “Gelecek Gençlerindir” (The Future belongs future as well, and to improve this aspect of ably endows the communities with which we to the Young). Around 6000 people benefit our work. Through the innovative approach interact. from its sports campus, which has a total area of 100,000 square metres. Here, the and reproducible models we develop, we In this context, I would like to stress that Club is aiming to bring up new generations desire to maintain our pioneering and ex- the activities of the ENKA Foundation, that are healthy in mind and body and ahead emplary position, as well as to be of benefit which we founded in 1983, account for the of their time. We have approximately 1,100 to both our country and to other places in greatest proportion of our social investment licensed athletes. They compete regularly in which we carry out our activities.

Mehmet Tara President and Chairman of the Executive Committee ENKA SUSTAINABILITY REPORT 2017 2017 ENKA SUSTAINABILITY REPORT

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The ENKA 2017 Sustainability Report has been prepared About the Report in accordance with the GRI Standards: Core option. Additionally, the report makes use of GRI Construction and Real Estate Sector Disclosures.

With its 2017 Sustainability Report, The ENKA 2017 Sustainability Report ENKA’s sustainability strategy was ENKA intends to share with all of covers data from and activities of designed and the materiality as- its stakeholders its targets for the ENKA Headquarters, all ENKA sub- sessment was conducted through a future, its approach to material is- sidiaries in Turkey and around the broad-based, inclusive stakeholder sues that are significant for its stake- world, and ENKA Foundation. All or- participation process. The materi- holders and its sustainability work ganisations listed in ENKA’s consoli- ality assessment process is described and performance in 2017. The report dated balance sheets are covered by in the report under the heading of 10 covers activities conducted between this report. The report chapters en- “Material Sustainability Topics”. 11 January 1st – December 31st 2017. titled Energy Efficiency and Climate This is ENKA’s first sustainability Change and Water Management cover This ENKA 2017 Sustainability repor t. the activities of ENKA Headquarters, Report has been prepared in Turkish two ENKA İnşaat Projects, Çimtaş and English. The ENKA 2017 Sustainability Report (Steel and Pipe), ENKA Power (all All enquiries, feedback and sug- has been prepared in accordance plants), ENKA Pazarlama, Istanbul gestions regarding the ENKA 2017 with the GRI Standards: Core option. ENKA Schools, ENKA Sports Club Sustainability Report may be ad- Additionally, the report makes use and ENKA Real Estate (CCI, ENKA dressed to [email protected] . of GRI Construction and Real Estate TC, MKH). Sector Disclosures. The data for the report was collected ENKA became a signatory of the under the leadership of the ENKA United Nations Global Compact Sustainability Committee with con- (UNGC) in 2017. The UNGC Index tributions from all firms and organi- given at the end of the report indi- sations active within ENKA and their cates which parts of the report in- relevant units. Mikado Sustainable clude ENKA’s activities in relation to Development Consulting supported the 10 global principles. the preparation of the report. The report was not subject to external auditing. ENKA SUSTAINABILITY REPORT 2017 ABOUT ENKA

12 13 ABOUT ENKA ENKA SUSTAINABILITY REPORT 2017 ABOUT ENKA

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About ENKA

Our Vision ounded in 1957, ENKA İnşaat ve Sanayi ENKA İnşaat ve Sanayi A.Ş., a company with To be one of the best A.Ş. (ENKA) provides comprehensive its headquarters in Istanbul, Turkey, provides and most innovative services including design and engi- services in the following areas through its affil- global engineering and neering at the purchasing, construction, iated companies, foreign enterprise branches construction companies. F commissioning, operation, maintenance and and jointly controlled entities: project management stages of all kinds of con- Our Mission struction projects. It operated mainly in Turkey • Engineering and Construction in the early years and later in other countries. To design, build and deliver • Power Generatıon safe, high-quality and cost- With the combined strength of the companies effective construction in the group, ENKA has carried out more than • Real Estate projects on schedule for our 500 projects in 45 countries. Working with customers while providing human resources comprising more than 40,000 • Trade quality employment and and a machinery park valued at USD300 mil- career growth opportunities lion, ENKA has succeeded in making its ser- for ENKA employees. vices available in every location in the world.

14 Our Values 15

Integrity: Our conduct towards our clients, shareholders, ENGINEERING & POWER GENERATION REAL ESTATE TRADE employees, suppliers, subcontractors, governmental CONSTRUCTION and regulatory authorities and competitors, and towards society as a whole, is without fault. ENKA İNŞAAT VE GEBZE ELEKTRİK ENKA PAZARLAMA MOSENKA Sustainability: A corporate sustainability approach SANAYI A.Ş. ÜRETİM LTD. ŞTİ. İHRACAT İTHALAT A.Ş. fully mindful of our economic, environmental and social responsibilities towards internal and external ADAPAZARI ELEKTRİK MOSKVA KRASNYE ENTAŞ NAKLİYAT VE stakeholders. ÇİMTAŞ ÜRETİM LTD. ŞTİ. HOLMY TURİZM A.Ş. Ethics: Transparency, Accountability and Discipline in our business. İZMİR ELEKTRİK AIRENKA HAVA KASKTAŞ ENKA TC Trust: An open relationship with our employees based ÜRETİM LTD. ŞTİ. TAŞIMACILIĞI A.Ş. on mutual trust, respect and success. Innovative Acumen: Excellence, Innovation and CITY CENTER ENKA SYSTEMS Improvement. ENKA TEKNİK INVESTMENT BV. YAZILIM A.Ş. Commitment: Uncompromising commitment to Quality, Health, Safety and Environment. Solidarity: Sharing success and standing together in the TİTAŞ ENKA INVEST face of failure.

Read more… Read more... Çimtaş: http://www.cimtas.com/about-us/profile/ about our activities: http://www.enka.com/what-we-do/ ENKA Power: http://www.enkapower.com/en/visson-and-mission/ about our activities: http://www.enka.com/subsidiaries/ ENKA Sports: http://www.enkaspor.com/en/about-us/mission/ ENKA SUSTAINABILITY REPORT 2017 ABOUT ENKA

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AFRICA ASIA Turkmenistan Kosovo Aside from the operation of its natural gas com- Netherlands, Turkmenistan, Sri Lanka, Saudi Algeria Afghanistan Russia The Netherlands bined cycle power plants in Gebze, Adapazarı Arabia, India, Mauritania, Paraguay, Kenya, and İzmir in Turkey, ENKA continued its work Mexico and Greece. In addition, ENKA and the Burundi Azerbaijan Turkey Romania in 2017 on: pipeline preliminary works and fa- contractor have agreed upon the construction Cameroun India Ukraine cilities in Georgia; natural gas combined cycle works of the 433MW Namakhvani hydroelec- Djibouti Iran AUSTRALIA power plants undertaken on an EPC basis in tric power plant project to be built under the Iraq; a multi-functional medical centre complex build-own-operate model in Georgia, the Dhi Equatorial Guinea Iraq Papua Yeni Gine NORTH AMERICA in Gelendzhik, the TAIF business centre in Kazan Qar and Samawa combined cycle power plants Ethiopia Jordan EUROPE Mexico and the Kashirskaya shopping centre project in in Iraq, and a combined cycle power plant with Gabon Kazakhstan Albania Dominican Republic Moscow – all in the Russian Federation; con- an installed capacity of 495MW in Nizhnekamsk struction work on an oilfield and islands in in Tatarstan in the Russian Federation. Guinea Kyrgyzstan Belarus Kazakhstan; the Kosovo Route 6 motorway Kenya Nepal Bosna Herzegovina SOUTH AMERICA The countries in which ENKA has operated are project, and projects for the construction of US Libya Oman Croatia Paraguay embassy buildings in Afghanistan, Russia, the shown below: Mali Saudi Arabia Germany Mauritania Sri Lanka Georgia Sierra Leone Tajikistan Greece

On-going Projects

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Governance

NKA carries out its activities The Board of Directors of ENKA İnşaat with an ethical, transparent and ve Sanayi A.Ş. is made up of a total of accountable management ap- five members comprising two execu- E proach. It fully abides by all laws tive members and three non-executive and regulations, and its model of corpo- members of whom two are independent rate governance has been developed in members. According to the company’s accordance with the corporate govern- articles of incorporation, ENKA İnşaat ve ance principles laid down by the Capital Sanayi A.Ş. is managed and represented Markets Board of Turkey (SPK). ENKA externally by its board of directors. At shares information about the progress it the Ordinary General Assembly held on is making in this area with its stakeholders 24th March 2017, a decision was taken by publishing annual corporate govern- approving the following board members ance principles compliance reports. to serve for a period of one year.

ENKA İnşaat ve Sanayi A.Ş. is controlled by Tara Holding A.Ş. and the Tara and Gülçelik families, and 12.03% of its shares are traded on Borsa İstanbul, the Istanbul Stock Exchange.

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The Executive Committee of ENKA İnşaat ve Sanayi A.Ş. is as shown in the following table, with no limits on the period of office:

Executive Committee

Board of Directors Name and Surname Occupation Position

President and Chairman of the Executive Committee Name and Surname Occupation Position (Engineering and Architectural Project Offices, Human A.Mehmet Tara Civil Engineer Resources and Administrative Affairs, Environment, M. Sinan Tara Civil Engineer MSc Chairman of the Board of Directors Health and Safety at Work, Quality Management, Machinery Supply and Real Estate Investments) Haluk Gerçek Industrial Engineer Deputy Chairman of the Board of Directors M.Gökhan Sağnaklar Civil Engineer Deputy Chairman of the Executive Committee Member of the Board of Directors (Non-Executive Erdoğan Turgut Civil Engineer MSc Member) B.Burak Özdoğan Civil Engineer Member of the Executive Committee (Moscow Projects) Member of the Board of Directors (Non-Executive E. Melih Araz Economist Member of the Executive Committee (Nuclear Power C.Şan Gürdamar Civil Engineer MSc Independent Member) Plant Projects) Member of the Board of Directors (Non-Executive Member of the Executive Committee (Infrastructure V, Ergin İmre Chemical Engineer MSc Özger İnal Civil Engineer MSc Independent Member) Projects) Member of the Executive Committee (Oil, Gas and S.Oğuz Kırkgöz Civil Engineer Petrochemicals Projects)

Zafer Gür Civil Engineer Member of the Executive Committee (Special Projects)

H.Fehmi Bayramoğlu Mechanical Engineer Member of the Executive Committee (Energy Projects)

Cem Çeliker Lawyer Member of the Executive Committee (Legal Affairs) ENKA SUSTAINABILITY REPORT 2017 ABOUT ENKA

Financial Performance Fiscal Indicators Net Sales Income USD2,899,584,190 n 2017, the company’s assets increased Of the distributable profits earned in 2017, to USD8 million from USD7.6 million TRY349 million was paid out in cash as Liabilities USD1,747,478,462 the previous year. Its net cash position advances against dividends. Moreover, a I amounted to USD3.2 million, and 78% proposal was submitted to the General Own Resources USD6,283,812,575 of the total resources of the company con- Assembly to be held in 2017 envisaging the Economic Value Directly Produced sisted of its own resources. distribution of additional cash dividends of TRY552 million as well as to add TRY400 Construction USD1,195,007,579 ENKA achieved a turnover of USD2.9 bil- million to the company capital through a lion in 2017 in the four main segments in bonus issue. Real Estate Rental USD318,976,963 which it operates. The company’s net profit increased from USD589 million to USD705 The tender for the project to construct and Trade USD234,245,005 million. Earnings before interest and tax, subsequently operate a 433MW dam and Energy USD1,336,969,326 which indicate the company’s operational hydroelectric power plant in Georgia was profitability, worked out at USD745 million, won in 2017. Total USD2,899,584,190 of which engineering and construction ac- 20 Economic Value Distributed 21 counted for 28%, energy production for 42%, real estate for 26% and the trade seg- Sales, Distribution and Marketing Costs USD26, 612,213.48 ment for 4%. General Management Expenses USD101,615,754.42 Benefits to Employees Salaries USD228,180,000 Social Security Expenditures USD45,258,000 Other Benefits USD3,238,000

Total USD276,676,000 Total Tax Expenditures USD118,025,245

Tax Reductions Income Tax TRY4,867,223 Social Security Premiums TRY1,043,689 Corporation Tax TRY15,294,954

Total TRY21,205,867 Payments to Capital Owners

Profit To Holders of Ordinary Shares TRY853,000,000 To Holders of Preference Shares TRY29,352,000

Total TRY882,352,000 ENKA SUSTAINABILITY REPORT 2017 ABOUT ENKA

Important Developments In 2017

ENKA İnşaat ve Sanayi A.Ş. ENKA Group Companies:

The reconstruction of the At the beginning of the year, Kashirskaya Shopping Centre an agreement was made for in Moscow, which is part of the Namakhvani project, a hy- ENKA’s real estate portfolio, droelectric power plant with an The ENKA subsidiary Cimtas continued. The engineering installed capacity of 433MW Boru (Cimtas Pipe) opened a and construction works of this which is to be constructed new LEED Gold-certified fac- The company ENKA Systems project are being carried out in under the build-own-operate tory, thereby increasing its was established as an ENKA line with Russian green building model in conjunction with annual production capacity by subsidiary in order to meet the requirements. Norway’s Clean Energy Group. 60,000 tons. software needs of companies managing large-scale opera- 22 tions at the global level. The 23 centre was approved as an R&D centre by the Ministry of Science, The contracts were secured Industry and Technology of for the Dhi Qar and Samawa the Republic of Turkey. During combined cycle power plant the course of the year, ENKA projects in Iraq and for two pro- Systems put six software pack- jects in Tatarstan in the Russian ENKA İnşaat ve Sanayi A.Ş. A number of infrastructure im- ages on the market. Federation: the TAIF Business opened its Design Centre, provements were made at the Centre project in the city of which will operate in the fields Gebze, Adapazari and İzmir nat- Kazan and the combined cycle of Design and Engineering. This ural gas combined cycle power power plant with an installed centre is Turkey’s first design plants operated by ENKA sub- capacity of 450MW to be built and engineering centre in the sidiary ENKA Power, and the in Nizhnekamsk. construction sector. “Advanced Path and DLN2.6+ Upgrade” investment was made using the latest technology. The Kuntsevo Multi-Purpose ENKA Power led the sector with Trade Centre, which is owned ENKA became the first con- this technology investment. As by ENKA’s subsidiary ENKA TC, tracting company to enter Libya a result, the performance of its has started to operate in 2015 since the war. power plants improved, their and has reached an occupancy emission levels were reduced, rate of 89% in the shopping mall and the management flexibility area and 52% in the office areas and reliability of the plants was as of the end of 2017. The ENKA Sustainability increased. The transition to the 2015 ver- Committee, Ethics Committee sions of the ISO 14001 and and Risk Management Working ISO 9001 management system Group were established, and quality certificates was success- the ENKA Ethics Hotline was fully completed. put into active use. ENKA SUSTAINABILITY REPORT 2017 ABOUT ENKA

ENKA Sports Club Achievements ÇİMTAŞ Awards

Athletics • General Electric: “Comprehensive Partnership” Award Two European Championship records and four adult, eleven U23, six U20 and five U18 • Turkish Structural Steel Association: Turkey records were broken. “Tenth Year of Membership Award of Honour” At the 2017 European Athletics Championship, a total of five gold medals, • Istanbul Minerals and Metals Exporters Awards Received In 2017 one silver medal and one bronze medal Unıon (İMMİB) “Third Time Leading were won. Exporter of Iron and Steel Construction Parts” Award At the 2017 World Athletics Championship, Capital 2017 – Turkey’s Most Profitable Bahçeşehir University Trophy– ENKA one silver medal and one bronze medal • Ministry of Energy and Technology: Company Sailing Team were won. “R&D Centre” Certificate ENKA was chosen as the most profitable The ENKA Sailing Team finished first in company in the Turkey’s 500 Largest the Bahçeşehir University (BAU) yachting Tennis • IDC Turkey Best Innovation Projects Private Companies of Turkey Survey con- trophy programme, made up of four races. Awards: “Operational Excellence Championships were won in singles and Projects of the Year” Award ducted by the Capital Magazine. The team won the championship for IRC-0 doubles at the Islamic Solidarity Games. division yachts, which is considered the • Award for Excellence in Client Focus highest category. In ITF junior tournaments held in different Boğaziçi Business World Awards 2017 - places and at different times, our players Construction Company of the Year were champions seven times and finalists six times in singles, and champions six MKH Swissotel Awards ENKA was selected for the “Construction Stars of Real Estate – Jury Award of times and finalists 14 times in doubles. Company of the Year” award at the Honour • 2017 TripAdvisor Travelers’ Choice® – “Boğaziçi Business World Awards” organ- The Sign of the City awards were organised Swimming Top 25 Luxury Hotels, Russia ised in a total of twenty categories by the for the fourth time in 2017 with the aim of Boğaziçi (Bosporus) University Engineering bringing the construction and real estate One gold medal was won at the 2017 • 2017 TripAdvisor Travelers’ Choice® – 24 Club. sector into line with international norms European Swimming Championships. Best 25 Hotels for Service in Russia 25 and encouraging it to achieve excellence. A World Swimming Championship record • Luxury Travel Guide Awards 2017 – Best Winners were selected in five main cat- was broken in the butterfly stroke at the Luxury Hotel, Russia Global Project of 2017 and Global Best egories. The Jury presented its Award of World Schools Swimming Championships. Project in the Power/Industrial category Honour to Mr Şarık Tara. • Luxury Travel Guide Awards 2017 - Best Our swimmers took seven gold medals, five The Sulaymaniyah 1,500MW Combined Hotel Restaurant (Acapella Restaurant) silver medals and four bronze medals at the Cycle Power Plant Project was chosen Islamic Solidarity Games. Global Best Project in the Power/Industrial Turkish Education Association Social • Travel & Hospitality Awards 2017 – category by the world-renowned Responsibility Award Service Excellence Award Water Polo Engineering News Record (ERN) mag- The ENKA group of companies and vol- Our adult and junior teams finished the • World Travel Awards 2017 – Russia’s azine and received the Global Project of unteers and students from ENKA Schools Leading Luxury Business Hotel 2017 award from the same magazine. This joined forces for the Vodafone Istanbul season in second place in Turkey while we was the first time that a Turkish engineering Marathon, the only intercontinental race won championship titles in all the inter- • Calvados Nouvelle Vogue International company had received the Global Project in the world, which was held for the 39th vening age groups. Trophies 2017- Best Bartender of Russia of the Year award. time in 2017, in a partnership with the We won one gold medal at the Islamic (Nikita Khlopyanov) Turkish Education Foundation (TEV). Our Solidarity Games and placed third in the volunteers were delighted to be part of the Balkan U15 Championship. ENKA was included in Forbes’ list of the marathon under the theme “We are run- ENKA TC Awards “World’s Best Employers 2017”. ning for our children’s future”. They made Wrestling the crossing from Asia to Europe with great In the European Property Awards an- ENKA wrestling team has won the Turkish nounced in late 2016, the Kuntsevo Plaza excitement and exuberance. The ENKA Championship in Junior category. Istanbul Sailing Club Trophy – ENKA Group and ENKA Schools were selected received awards in the Retail Architecture Yachting Team for the award by the Turkish Education We won one First place and Second place and Retail Development categories. It Foundation. prizes in the 20th International Champions was “Highly Commended” in the Retail The ENKA Sailing Team finished first in the Tournament. Architecture category and received a “Five Istanbul Sailing Club (İYK) 2017 yachting Star” accolade in the Retail Development trophy programme, made up of nine races. We came in Second place in the Third category. The team won the championship for IRC-0 Balkan Youth Championship. division yachts, which is considered the highest category. DOING GOOD BUSINESS

27 DOING GOOD BUSINESS ENKA SUSTAINABILITY REPORT 2017 DOING GOOD BUSINESS

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n determining the potential material into account in identifying the most material Sustainability Priorities sustainability topics, GRI Standards topics were the economic, social and envi- Sustainability Reporting Guidelines, ronmental impacts which ENKA creates, the NKA’s sustainability priorities were The topics identified also provided input for the GRI Construction and Real Estate risks and opportunities associated with each identified through an intensive pro- the development of ENKA’s sustainability I Sector Disclosures and the GRI report of the sustainability topics, and the effects cess of engagement with its stake- strategy. “Sustainability Topics for Sectors: What do of these topics on the long-term perfor- E holders, both internal and external. stakeholders want to know?” were used. mance of the company. The materiality analysis took place over a Account was also taken of the dynamics three-month period between March and of the sectors in which ENKA operates, the In addition, face-to-face workshops and/or May 2017. economic, social and environmental im- online surveys were carried out to find out pacts of these sectors and of ENKA itself, which sustainability topics were most impor- ENKA Sustainability Materiality Analysis Process and feedback obtained directly or indirectly tant to ENKA’s stakeholders and to receive from stakeholders over the course of time. the stakeholders’ feedback. The groups of stakeholders to take part in the materiality A materiality workshop was held with the assessment were chosen together with the Preparation Determination of Topics Sustainability Committee in order to deter- group companies taking elements of impact for Stakeholders mine the sustainability topics of strategic and accessibility into account, and care was 28 importance for ENKA. A total of 42 mem- taken to ensure that the individuals and or- 29 A list was made of the topics Face-to-face workshops and/ bers, consisting of high-level managers and ganisations contacted were selected in such that might be prioritised, based or online qiuestionnaires were decision-makers from ENKA headquarters a way as to be representative of the stake- on a study of sectoral dynamics, used with varioius groups of and ENKA group companies, took part in holder group. information obtained from stakeholders in order to find the workshop. Among the factors taken situation analysis meetings, out what sustainability topics feedback from stakeholders and were material for ENKA’s relevant internal and external stakeholders and to receive sources their feedback.

The list was reviewed and the items were grouped and consolidated. As a result, 21 topics that might potentially be A total of 266 stakeholder representatives, including the materialized were identified. Sustainability Committee, ENKA employees, suppliers, employers, sales representatives, non-governmental ENKA Materiality Analysis organisations and professional associations contributed to ENKA’s materiality analysis through the stakeholder Determination of Strategic engagement process Topics The findings obtained from the top management and from the stakeholders were A materiality workshop was consolidated and the most conducted with the Sustainability material sustainability topics Committee, representing the top for ENKA were projected onto management of ENKA, in order a matrix. to identify the sustainability topics of strategic importance for ENKA. ENKA SUSTAINABILITY REPORT 2017 DOING GOOD BUSINESS

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During the workshops and online surveys, A total of 266 stakeholder representatives, Workshops Held and Surveys Conducted the relevant sustainability topics were including the Sustainability Committee, shared with ENKA’s stakeholders and they ENKA employees, suppliers, employers, were asked to select the topics most im- sales representatives, non-governmental portant to them and put them in order. At organisations and professional associations the workshops, the participants were also contributed to ENKA’s materiality analysis No. Of Method Stakeholder Group given a sustainability training, which made through the stakeholder engagement pro- Participants the workshops more productive. All of these cess. Finally, the most material sustainability activities proved to be of great value for un- topics for ENKA were identified by consoli- Senior Management 42 derstanding what stakeholders expect of dating the findings obtained from the senior ENKA, getting to know their ideas for im- management and from the stakeholders. provements, and strengthening stakeholder Employees Group 1 27 engagement. Employees Group 2 25

Workshop Suppliers 10 30 31 Non-Government Organisations And Professional 11 Organisations

Çimtaş 30

Total 145

Employers 15

Sales Representatives 6

Suppliers Group 1 3

Suppliers Group 2 39 Survey Employees Group 1 10

Employees Group 2 48

Total 121

Grand Total 266 ENKA SUSTAINABILITY REPORT 2017 DOING GOOD BUSINESS

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ENKA Sustainability Materiality Matrix

Environmental and Water Social Appropriacy Management of Suppliers

Low Waste Supplier Management Diversity, Diversity Equal Opportunities

Environment-Friendly Materials, Equipment Community Investment and Buildings Programmes To be an Employer Socio-Economic Impact Brand on Local People

Contribution to the Local Economy

Carbon Footprint and Energy Innovation and R&D Efficiency

32 33

Ethics and Compliance

Employee Rights and Employee Satisfaction Strategic ImportanceStrategic

Employee Training and Development

Quality of Products and Services

Customer Satisfaction

Financial Performance

Health and Safety at Work High

High Importance for Stakeholders Low ENKA SUSTAINABILITY REPORT 2017 DOING GOOD BUSINESS

The list of ENKA’s most material sustainability topics drawn up as a result of the above pro- Sustainability Policy cess, together with the range of units they encompass, is as follows:

Most Material Sustainability Topics Scope In all regions where we undertake As a leading and global company, work, we respect human rights, ENKA Group and Subcontractors (including headquartered in Istanbul, we pro- oppose all forms of discrimination, Health and Safety at Work vide high-quality products and ser- promote equality of opportunity Projects) vices in any activity we partake in. and expect our business partners to be just as sensitive.

Economic Performance ENKA Group (including Projects)

We contribute to the develop- In addition to ensuring the health ment and welfare of the countries and safety of our employees, who Customer Satisfaction ENKA Group (including Projects) in which we execute our projects; are our foremost stakeholders, we 34 we ensure our credibility by pri- provide them with a fair and partic- 35 oritizing occupational health and ipatory working environment and safety, quality and cost efficiency. invest in their development. Quality of Products and Services ENKA Group (including Projects)

We carry out our business with a Employee Training and Development ENKA Group (including Projects) We measure and assess the envi- corporate management approach ronmental and social impact of our that is transparent and accountable activities. We improve processes in and contributes to the vision of sus- place to reduce negative impact. Employee Rights and Employee tainable growth. ENKA Group (including Projects) Satisfaction

ENKA Group, Subcontractors, Suppliers and Ethics and Compliance Business Partners (including Projects) We provide employment to thousands of people in geography we We support measures against cli- operate and help local econo- mate change and take care to pro- mies flourish. By meeting regional tect natural resources. Innovation and R&D ENKA Group (including Projects) needs, we contribute in local socio-economic development.

Headquarters, Çimtaş (Pipe + Steel), 2 Projects, Power (All), ENKA Pazarlama, Istanbul ENKA Carbon Footprint and Energy Efficiency Schools, ENKA Sports Club, ENKA Real Estate We value stakeholder participa- (CCI, ENKA TC, MKH) tion. Our comprehensive strategy We support the development of takes account of stakeholder ex- future generations by investing in pectations, lowers risks and helps education, arts, culture and sport. Contribution to the Local Economy ENKA Group (including Projects) us establish long-lasting and permanent relationships. ENKA SUSTAINABILITY REPORT 2017 DOING GOOD BUSINESS

Sustainability Management

ENKA, which operates in a variety of sec- largest corporate sustainability initiative, tors such as engineering and construction, calls on companies to bring their strate- energy, real estate and trade, and is active gies and operations into line with universal in many different locations, has committed principles concerning human rights, em- itself to serve sustainable development in all ployee rights, the environment and the its operations. avoidance of corruption, and to take action for the achievement of global goals. ENKA has a Sustainability Committee which https://www.unglobalcompact.org/ leads its sustainability efforts, determines its sustainability strategy, follows up the imple- The approach to corporate sustainability mentation of its sustainability actions and adopted by ENKA entails an awareness of monitors the state of its sustainability goals. its economic, environmental and social re- The Sustainability Committee is made up sponsibilities to its internal and external of managers from different units and de- stakeholders. In this context, ENKA has held 36 partments at the Headquarters and in the a comprehensive dialogue with its stake- 37 subsidiaries. The Sustainability Committee holders, both external and internal, in order meets regularly and is sponsored by ENKA’s to develop its sustainability priorities and CEO. perform its materiality analysis. The strategy development effort was conducted by the While the Sustainability Committee leads ENKA Sustainability Committee – which ENKA’s work on sustainability, sustainability meets regularly and includes representatives and corporate responsibility is a holistic ap- of the various subsidiaries and departments proach which requires the integration of all within the group – and led by ENKA’s CEO, ENKA employees into decision-making and the sponsor of the Sustainability Committee. business mechanisms. With this in mind, every effort is made to ensure that sustainability targets and actions are owned and followed at every level. ENKA Sustainability Strategy

On 17th November 2017, ENKA signed the Drawn up in consideration of ENKA’s fields United Nations Global Compact and com- of influence and the sustainable develop- mitted itself to act in accordance with its ment goals, the ENKA sustainability strategy ten fundamental universal principles. The has four main foundations: UN Global Compact, which is the world’s ENKA SUSTAINABILITY REPORT 2017 DOING GOOD BUSINESS

ENKA, ENKA,

does its business honestly and on time, its work is of high quality, and it makes protects the health and safety of its employees and its subcontractors’ sure that a responsible and ethical attitude is adopted at every level. employees.

has broadened the definition of risk management so as to address economic, works to increase employee loyalty and the more active engagement of environmental and social issues in an integrated manner. the employees in decision-making mechanisms.

encourages, trains, supervises and ameliorates its business invests in the training and development of its employees and partners, subcontractors and suppliers in the context of its provides them with equal opportunities for training and responsible supply chain management. C development. S E A G S M R seeks to generate awareness of sustainability among its

seeks to generate awareness of sustainability among IN E P IN

IN L G employees. its sales representatives and customers as well, and O S O provides leadership to all its stakeholders in terms D U Y F B E O of sustainability. E D S R contributes to the realisation of sustainable O development through its innovation and R&D O activities. G

38 39

G ENKA, I ENKA, R N I S O P measures and reports on its environmental R E contributes to the welfare and development of N E O I

impacts, sets targets and ameliorates them. M D L IT local communities through the infrastructure and

E superstructure investments it makes. E U N N C U carries out improvements to reduce its carbon and T I E A N D M contributes to the development of the engineering water footprints and ensures energy efficiency. L G M IM CO profession in all regions of the world in which it operates. develops and implements environment-friendly building PAC solutions. T supports the growth of a responsible generation by spreading awareness of sustainability in its schools. adopts green office practices and encourages its employees to invests in education, culture and arts, and sport. respect the environment. ENKA SUSTAINABILITY REPORT 2017 DOING GOOD BUSINESS

102-40, 102-42, 102-43

ENKA Sustainability Strategy and our world is faced with. There are seven- Stakeholder Engagement the UN Sustainable Development teen SDGs, grouping together a total of 167 targets. Goals Determining the needs and expectations of channels for interacting with them. ENKA https://www.un.org/sustainabledevelopment/ stakeholders and engaging them in business further groups its main stakeholders as The UN Sustainable Development Goals processes is of great strategic value and im- employees, customers, business partners, (SDGs), sometimes also referred to as ENKA seeks to contribute to the UN global portance for improving performance in pro- shareholders, community stakeholders and the “global goals”, emerged from the UN development agenda through its sustaina- cesses and activities, minimising risks and public institutions. ENKA communicates Sustainable Development Conference held bility strategy, the decisions it takes and the managing them effectively, reducing envi- regularly with its stakeholders in a spirit of in Rio de Janeiro in 2012 and took effect operations it carries out. The ENKA sustain- ronmental impacts through an awareness of openness, transparency and accountability. in 2016. The aim was to establish a set of ability strategy is particularly closely linked new developments in the company’s fields It informs them about its activities via var- universal goals that address the urgent en- to the following SDGs: of activity, shaping social investment efforts ious platforms and endeavours to obtain vironmental, social and economic problems and collectively constructing a sustainable their opinions. Stakeholder engagement future. activities have played a determinant role in the identification of ENKA’s sustainability ENKA defines its stakeholders as the indi- strategy and actions. viduals, groups and organisations who af- CLEAN WATER 40 QAULITY GENDER AFFORDABLE fect, or are affected, directly or indirectly, by The “ENKA Newsletter” platform, developed 41 4 EDUCATION 5 EQUALITY 6 AND SANITATON 7 AND CLEAN ENERGY its activities, aims and policies, and by the in 2015, provides employees with all kinds decisions which it takes. In identifying the of information and increase their awareness. stakeholders who may influence its strate- This platform is used to strengthen commu- gies and activities, or whom the activities it nication by sharing information about or- carries out may affect, the company makes ganisational changes at ENKA Headquarters use of criteria such as degree of impact, po- and within its subsidiaries, innovations, any tential for impact, authority to represent in- matter that might directly or indirectly affect dividuals and institutions, degree of loyalty employees, developments related to man- to the company and influence over com- agement systems, environmental matters, DECENT WORK INDUSTRY, REDUCED SUSTAINABLE CITIES pany policies and targets. sustainability activities, general announce- 8 AND ECONOMıC 9 INNOVATION AND 10 INEQUALITIES 11 AND COMMUNITIES ments about the company, lessons learned GROWTH INFRASTRUCTURE within the organisation, examples of good ENKA communicates regularly with practices, the company’s operating princi- its stakeholders in a spirit of open- ples, updates to management methods and ness, transparency and accounta- procedures, technology which we have de- bility. It informs them about its ac- veloped and many other topics of concern tivities via various platforms and to our employees. endeavours to obtain their opinions. The following table shows the communications platforms used by ENKA and the fre- RESPONSIBLE CLIMATE PARTNERSHIP quency of communication: 12 CONSUMPTION 13 ACTION 17 FOR THE GOALS Together with all its subsidiaries, ENKA has AND PRODUCTION an extensive stakeholder network. In line with its overall understanding and principles of stakeholder engagement, the company maps its stakeholders and identifies ENKA SUSTAINABILITY REPORT 2017 DOING GOOD BUSINESS

102-40, 102-43 102-40, 102-43

FREQUENCY OF FREQUENCY OF STAKEHOLDERS COMMUNICATION PLATFORM STAKEHOLDERS COMMUNICATION PLATFORM COMMUNICATION COMMUNICATION

Web Sites Continuous General Assembly At least once a year

Social Media Continuous Web Sites Continuous

Newsletter – Health, Safety Activity Reports Four times in a year and Environment at Work, SHAREHOLDERS (Partners, Investors) EMPLOYEES Quality Management System, Monthly Material Disclosures, Financial (ENKA employees and Sustainability Activities, General Reports, Periodic Disclosures As required by the related other workers performing Announcements (Public Disclosure Platform disclosure duties in ENKA’s name) Newsletter – Lessons Learned - KAP) and Best Practices within the Continuous Organisation Meetings Continuous

42 ENKA Academy Continuous Web Sites Continuous 43

Employee Loyalty and Once a year SOCIAL PARTNERS Media, Social Media Continuous Satisfaction Survey (Local Communities, NGOs, Upon the completion of the Media) Customer Satisfaction Survey Activity Reports Once a year projects

Web Sites Continuous Meetings Periodic CUSTOMERS ENKA Document Management (Investors, Project Owners, Continuous Activity Reports Once a year etc.) System Meetings Periodic Web Sites Continuous Periodic Disclosures (Public PUBLIC INSTITUTIONS Periodic Web Sites Continuous Disclosure Platform -KAP) (Governments, Local Institutions, Universities and Meetings Periodic ENKA Academy In line with the Training Plan Academic Institutions, Tax BUSINESS PARTNERS Bodies) (Suppliers, Subcontractors, Evaluation Surveys Several times a year Official Correspondence Continuous Manufacturers, Joint Ventures, Third Party ENKA Code of Conduct Audits Periodic Auditing Firms, Insurance and ENKA Supplier Code of Before starting new jobs Companies, Logistics Conduct Firms, Service Providers, Memberships Monthly Management Systems Consultancy Companies, Periodic Inspections etc.) ENKA Document Management Continuous System

Meetings Periodic ENKA SUSTAINABILITY REPORT 2017 DOING GOOD BUSINESS

102-40, 102-43

Our Membership Affiliations By maintaining the highest and most effective level of communications with all our stakeholders, we aim to orient the activities of our company in line with the principle of a Name of the Department/ Organization Category sustainable and better future for all. Organizations ENKA is enrolled in: Construction, Installation, Assembly, Engineering, Design, Consulting, Overseas Contracting Certificate Management, Maintenance and Repair Due to their specific structures and missions, The ENKA Schools define teachers and Activities the ENKA Foundation and ENKA Schools other employees, students, parents, inter- British Safety Council Global HSE Standards interact with a different group of stake- national stakeholders, public institutions, holders from those of the ENKA compa- academic institutions and subcontractors as nies. The ENKA Foundation communicates their major stakeholders and dialogues are Organizations ENKA has the certificate of: constantly with sports school students, ath- maintained with all these groups of stake- A (Assembly of power boilers at field letes, members, trainers, teams, federations, holders by means of various channels and American Society of Mechanical Engineers 44 sites) 45 spectators and artists and develops collab- means of communication. orations where necessary with sponsors, U (Manufacture of pressure vessels at non-governmental organisations and local field sites) administrations. U2 (Manufacture of pressure vessels at field sites) S (Design with fabrication, assembly and stamping at field sites) Quality Management System ISO British Standards Institution 9001:2015 Environmental Management System ISO 14001:2015 "Occupational Health & Safety Management System OHSAS 18001:2007" ASME Nuclear (Section III) Conformity TÜV NORD Certificate

Turkish Organizations ENKA is enrolled in: Foreign Economic Relations Board of Turkey (DEIK) The Turkish Contractors Association (TMB) The Turkish Employers' Association of Construction Industries (INTES) Turkish Exporters Assembly (TIM) ENKA SUSTAINABILITY REPORT 2017 DOING GOOD BUSINESS

Organizations Çimtaş Steel, Cimtas Pipe and Precision Machining are enrolled in: Organizations ENKA Power is enrolled in: Steel Construction Institute Istanbul Mineral and Metals Exporters' Association The Chamber of Turkish Naval Architects and Marine Engineers Organizations CCI is enrolled in: People Management Association of Turkey (PerYÖn) CRE Russia (Commercial Real Estate) SAHA İstanbul Defence and Aerospace Cluster Association BREEAM In-Use KALDER Organizations ENKA Systems is enrolled in: TWI Turkey Software Industrialists Association (YASAD) The American Society of Mechanical Engineers (ASME) Bursa Aerospace and Defence Cluster (BASDEC) Organizations MKH is enrolled in: Human Resources Solidarity Association (İKDAY) Association of European Businesses Turkish Shipbuilders' Association (GİSBİR) 46 47 Organizations ENKA TC is enrolled in: Organizations Cimtas CNBO is enrolled in: RCSC (Russian Council of Shopping Centers) American Society for Quality USGBC (US Green Building Council (Gold) China Lean Enterprise RUGBC (Green Building Council Russia (Premium) Turkey Lean Enterprise Moscow Investors Club Jishuken Association Ningbo Welding Association Organizations Adapazarı ENKA Schools is enrolled in: Liaoning Welding Association Eco-Schools The Committee of Liaoyang technical School Consultation White Flag The International Baccalaureate Organization (IBO) Organizations ENKA Pazarlama is enrolled in: Turkish Construction Equipment Distributors’ and Organizations İstanbul ENKA Schools is enrolled in: Manufacturers’ Association (İMDER) Eco-Schools The Material Handling, Storage & Industrial Equipment Association of Turkey (İSDER) White Flag The International Baccalaureate Organization (IBO) Organizations ENKA Foundation is enrolled in: Round Square Third Sector Foundation of Turkey (TÜSEV) New England Okullar ve Üniversiteler Birliği (NEASC) Turkish Marine Enviornment Protection Association Uluslararası Okullar Konseyi (CIS) Mediterranean Opera and Ballet Club Association (AKOB) Duke of Edinburgh Programı

Organizations ENKA Kocaeli Schools is enrolled in: Ministry of Education School Democracy Assembly ENKA SUSTAINABILITY REPORT 2017 DOING GOOD BUSINESS

The ENKA Supplier Code of Conduct falls any matters which they may be in doubt under five main headings: about. By using this hotline, employees and all the stakeholders concerned are able to Ethics And Compliance • Compliance with the Law pass on any concerns which they are unable to overcome by talking to their supervisors • Human Rights and Fair Working Ethics is one of ENKA’s basic values and the available on ENKA’s website so that it can or to their local project management. principle of “No concessions on integrity, be reached by parties other than ENKA Conditions honesty and fairness” is an unwavering ele- employees. ENKA Ethics Hotline personnel have signed • The Environment and Health and Safety ment of ENKA’s culture. ENKA’s employees a confidentiality agreement to the effect at Work have adopted global standards for inter- ENKA Code of Conduct, and the stance that they will preserve the confidentiality of of the company concerning human rights acting ethically with employers, suppliers • Security all information provided by persons making and subcontractors, communities, other and ethical matters, are shared with all use of the Ethics Hotline. They have com- colleagues and competitors, and are obliged newly-employed personnel as part of their • Combating Bribery and Corruption and pleted the training on the work it requires, to make the necessary efforts to carry out orientation training. Through this training Preventing Anti-Competitive Behaviour and are fully conversant with the ENKA their work fairly and honestly along these programme, ENKA seeks to ensure that its Code of Conduct and the company’s poli- lines. new employees carry out their work in ac- ENKA informs its suppliers of its Code of cies. They are obliged to report all the ques- cordance with the Corporate Understanding Conduct and the procedures that will be tions, requests for advice, accusations and All activities performed by ENKA’s em- of Ethics and Human Rights from their very followed in the case of any infringement of complaints, which they receive, to the Ethics ployees, representatives and subsidiaries first day at work. As of the end of 2017, 100% this code before signing any contract with and Compliance Committee. Once inquiries must be transparent and accountable, and of ENKA’s employees had completed the them. This requirement has been set out in have been completed, they identify the ac- consistent with the honesty, impartiality and orientation programme. The ENKA Code ENKA’s Procurement Procedure and all the tions that need to be taken in order to close reputation of the company. ENKA units and of Conduct is available in Turkish, English, 48 units concerned have been informed of this the report, as well as the persons respon- 49 individual employees must comply fully with Russian and Arabic. The ENKA subsidiary by means of internal announcements. In ad- sible, and then keep track of the process. the relevant laws and regulations in all activ- Çimtaş has its own specific Çimtaş Code of dition, the ENKA Supplier Code of Conduct ities which they are involved in carrying out, Ethical Conduct. is available on the ENKA website in Turkish, The company employees are informed the anywhere in the world. All ENKA employees English, Russian and Arabic. ENKA Ethics Hotline by means of their ori- are obliged to avoid any kind of relationship, ENKA Supplier Code of Conduct entation training, internal announcements communication or connection which might Executive Ethics and Compliance and Ethics Hotline posters. Contact informa- affect the decisions they make or the re- ENKA treats the concept of ethics as an Committee tion for the Ethics Hotline is also available sponsibilities they undertake in the course indivisible whole that encompasses all the on the ENKA website. In addition, a training of their work. These rules are valid for all processes in which it is engaged, and be- ENKA’s work on ethics and compliance programme has been designed for 2018 to of ENKA’s employees including managerial lieves that all the organisations with which is guided by the Executive Ethics and create awareness of the topic among em- staff at all levels and the top management. it jointly creates value should form part of Compliance Committee (“the Committee”), ployees and managers. Training on “Ethics this whole. Accordingly, ENKA expects all its which commenced its activities in 2017. The and Human Rights in Working Life” will be Managers in ENKA also have responsibilities suppliers, subcontractors, consultants and offered to all the company’s employees, for establishing a positive working environ- Committee also helps the company to con- business partners (collectively referred to as duct an effective ethics and compliance pro- and the functions of the Ethics Hotline will ment and for encouraging the development “suppliers”) to comply in all their activities be explained as part of the training. A spe- of the culture necessary to preserve this en- gramme, to determine basic principles, and with the ENKA Supplier Code of Conduct, to promote continuously a corporate culture cial session of the training programme will vironment, in which people are treated with which it published in 2017. be organised for the senior management of respect and dignity. that places importance on ethical business practices and compliance with the law. ENKA with the aim of increasing the awareness of the management in this area. The ENKA Code of Conduct Accordingly, ENKA expects all ENKA Ethics Hotline importance of basic principles in the Ethics Hotline process will also be shared with them In order to ensure that the principles which its suppliers, subcontractors, In 2017, ENKA established an Ethics Hotline underlie ENKA’s way of working are un- consultants and business The following table gives the planned to provide for open and transparent commu- derstood and adopted by all the relevant partners (collectively referred numbers of participants for the Ethics and nication, to enable employees, local people parties, a booklet has been written entitled to as “suppliers”) to comply in Human Rights in Workplace training: ENKA Code of Conduct. This booklet, which all their activities with the ENKA and all parties with which the company has has been published with the approval of the Supplier Code of Conduct, which business relations (suppliers, subcontrac- President and Chairman of the Executive it published in 2017. tors, subcontractors’ employees, employers, Committee, is accessible to all employees via business partners etc.) to report behaviour ENKA’s Electronic Document Management that infringes the Code of Conduct or other System (EDMS). It has also been made company policies, and to obtain advice on ENKA SUSTAINABILITY REPORT 2017 DOING GOOD BUSINESS

2018 Ethics and Human Rights Training Plan Human Rights Assessment Planned Number of Planned Trainee Group Hours of Training ENKA respects the human rights set out in the Universal Declaration of Human Rights, abides Participants Person-Hours by the provisions of the UN Global Compact, to which it is a signatory, and acts in accordance Ethics Hotline Personnel 11 14 154 with the conventions published by the International Labour Organisation (ILO). Headquarters (General) 70 3.5 245 Comprehensive activities have been conducted by ENKA Quality and Health, Safety and Senior Management 30 3.5 105 Environment (HSE) Departments in order to keep track of human rights requirements and to fulfil them, keeping international standards in mind, during the course of the company’s activi- ENKA Sports 21 3.5 73.5 ties and project assessments. The relevant stakeholders have been informed about these activi- ENKA Power 185 3.5 647.5 ties. The actions taken by the ENKA corporate departments in this respect within the reporting period can be summed up as follows: ENKA Schools 55 3.5 192.5 ENKA Moscow 30 3.5 105 The ENKA Code of Conduct was revised and employees and all other stakeholders were informed. Çimtaş 60 3.5 210 The ENKA Supplier Code of Conduct was drafted and sent to employees and suppliers. Total Planned Person-Hours of Training 1,732.5 50 51 Provisions reflecting human rights requirements and requirements of social compliance consistent with the Sustainability Strategy were included in the Company Procurement Procedures and the Supplier Evaluation Criteria were revised in accordance with these For 20 years now, I have been working in joint venture projects requirements. and as a consultant with ENKA, providing engineering services for energy projects. In the energy sector, ENKA is building facilities in The Ethics Hotline project was planned, for use throughout the ENKA Group, and the a way that meets both the requirements of the international clients personnel to work on the project were identified. and the international environmental impact standards, supporting global development. A procedure was developed for use by group companies and by projects in all places where the company operates, explaining the requirements of Social Community Bob Potocko, Bechtel Project Manager Engagement, and an internal announcement was made providing information.

The “Ethics and Human Rights in Workplace” training programme to be conducted by ENKA Academy in the year following the reporting period was planned.

ENKA is a qualified EPC consortium partner for GE to build full EPC power plants. The right to collective bargaining and organisation and the prevention of forced labour and child Typically, GE is the main equipment suppliers for power plants, and labour are among the most prominent aspects of human rights. The stance of the company provides equipment and associated services to ENKA, as well as regarding these matters is clearly stated in the ENKA Code of Conduct and ENKA Supplier long-term solutions to end clients. Code of Conduct. As a qualified partner for GE, it is understood that ENKA administers similar levels of integrity and ethical practices as GE. We have executed Child labour and forced labour are not permitted under any circumstances, whether in projects several large projects together and believe the practices and programs under the responsibility of ENKA, or in the activities of the subcontractors and suppliers with ENKA applies are of global standard. which it collaborates. The Health, Safety and Environment (HSE) and Legal departments using ENKA’s approach to social responsibility, environment and community prescribed procedures and tools inspect the latter activities constantly. No supplier with a neg- is positive and supports the on-going activities they have in the market. ative record with respect to the employment of informal child and youth workers or to forced Giving back to the communities we are active in is a core element of GE’s labour is collaborated with. During the routine controls and inspections conducted within the culture, and it is always encouraging to see that our partners apply reporting period, no cases of infringement were encountered in this regard. similar practices. Karim Khoury, General Manager Sales, Iraq & Levant Region, GE Gas Power Systems ENKA SUSTAINABILITY REPORT 2017 DOING GOOD BUSINESS

In all places where it operates, the company (China), there is an NFTZ committee. abides by the rights to collective bargaining and organisation in accordance with the At Çimtaş Shipyard, a collective contract applicable labour laws and legislation, and was signed with the trade union Türkiye respects the rights of employees and sup- Dok Gemi-İş on 27th March 2017 covering pliers to organise and join trade unions. the period from 1st March 2017 to 28th During the reporting period, no request or February 2020. The collective contract for complaint was made to us in this regard, employees at the Çimtaş Steel, Cimtas Pipe nor was any infringement of these rights and Çimtaş Precision Machining plants ex- encountered during internal inspections. pired on 31st August 2017 and talks on a Workers and suppliers may communicate new contract are continuing with the trade any requests and/or complaints which they union Türk Metal. may have in this area through the Worker In the reporting period, 62% of the total Safety and Health council meetings which number of employees at Çimtaş’s work- are organised regularly in the projects or places in Turkey and 82% of the employees contact the ENKA Ethics Hotline, which be- at its workplace in China were union mem- came active in 2017. At the ENKA subsidiary bers. The percentage of the total number of 52 Çimtaş, labour unions are organised and col- 53 employees at all of Çimtaş’s workplaces who lective bargaining is practised. were union members and were covered by Labour Unions and Collective Bargaining collective bargaining in the reporting period at Çimtaş was 67%. 102-41 No case was encountered in the reporting The trade union Türk Metal is the authorised period of any risk being posed to the labour union at the Çimtaş Steel, Cimtas freedom of organisation and collective bar- Pipe and Çimtaş Precision Machining plants, gaining at any of the Çimtaş plants. while Türkiye Dok Gemi-İş is the authorised union at Çimtaş Shipyard. At Cimtas CNBO

Numbers and Proportions of Employees who are Members of a Union and Covered by Collective Bargaining

Number of Percentage of Total Number of Workplace Employees who are Employees who are Employees Members of a Union Members of a Union

Çimtaş Steel 503 316 63%

Cimtas Pipe 933 583 62%

Çimtaş Shipyard 85 36 42%

Çimtaş Precision Machining 276 173 63%

Cimtas Ningbo (China) 377 347 92%

Total 2,174 1,455 67% ENKA SUSTAINABILITY REPORT 2017 DOING GOOD BUSINESS

Prevention of Corruption and Unfair ENKA is active all over the world, mostly Senior Management Units Number of Persons Receiving Training Competition through overseas construction projects. It carries out all its projects and activities in Representatives of the Senior Management 11 ENKA shares are traded on the stock ex- conformity with the laws of the countries Legal Department 3 change and it operates under International concerned. It avoids anti-competitive be- Financial Reporting Standards. It expects haviour, abides by predetermined confiden- Financial Affairs Department 4 its employees, business partners and all tiality rules and contributes to the sustaina- Human Resources Department 2 individuals with which it has a service rela- bility of the free market economy by taking tionship to act in accordance with the laws a firm stance against any action that could Quality, HSE and Integrity Department 5 and the rules of ethics. In order to counter be regarded as monopolistic or conducive Executive Ethics Committee 10 any risk or risks that may arise with respect to the formation of trusts. to corruption, regular financial reporting is Audit Committee 2 conducted, preventive mechanisms are es- Ethics, Compliance and Anti-Corruption tablished, and internal auditing procedures Training Corporate Governance Committee 3 are followed. Any act that could be consid- Early Identification of Risks Committee 2 ered to constitute corruption is regarded as The main training programmes which the ENKA Academy organises in the area of an infringement of the ethical rules. Under The figure below shows the breakdown of the ethics and anti-corruption training activities ethics and compliance are as follows: 54 the ENKA Code of Conduct, bribery, the ac- organised within the company, and in which a total of 42 members of the management group 55 ceptance or presentation of inordinate gifts, • ENKA Code of Conduct took part, by topic and person-hours. and any actions directed towards obtaining unjust and personal benefits, are considered • ENKA Supplier Code of Conduct Distribution of Ethics Training Provided to Company Internal Management Organs to constitute totally unacceptable ethical

infringements. Actions of this kind, which • Ethics and Human Rights Training – the 429 contravene the law, are liable to cause ma- Ethics Hotline 411 30 terial or moral damage to the company and/ 384 or constitute offences, are taken very seri- • Combating Corruption ously and followed up vigorously. No case Details of the training received by the senior 366 of corruption was encountered during the management units of the company on com- reporting period, and no public lawsuit was bating corruption and ethical matters in opened against the company. 2017 are presented in the following table: 70 Training is organised by ENKA Academy for employees and all other stakeholders including business partners, shareholders and 206 suppliers in order to ensure that ENKA’s ethical principles are understood and adopted, 161 and to combat corruption. 33 129 30

93 15 Person-Hours 66 12 6 9 15 9 33 14 12 30 In 2017, training on the ENKA Code of Conduct, the 9 6 9 6 6 15 6 6 ENKA Supplier Code of Conduct and Combating 12 9 6 6 9 6 Corruption was provided for 1,239 staff of our Senior Legal Financial Human Quality, Management Audit Corporate Risk Early business partners. Management Department Affairs Resources HSE and Ethics Committee Governance Identification Department Department Integrity Committee Committee Committee Department Total Person-Hours ENKA Code of Conduct ENKA Supplier Code of Conduct Ethics and Human Rights Combating Corruption Training - the Ethics Hotline ENKA SUSTAINABILITY REPORT 2017 DOING GOOD BUSINESS

Aside from the training programmes mentioned above, a total of 18,483 persons took part in training on the ENKA Code of Conduct, the ENKA Supplier Code of Conduct and Combating Corruption in the Istanbul Headquarters and in the projects during the reporting period, depending on the categories of the countries in which the company operates. The total number of person-hours of training given on these topics in 2017 was 166,347. The distribution of the participants by nationality is as follows:

Number of Turkish personnel 2,783

Number of local personnel in the countries 8,142

Number of other personnel 7,558

ENKA also organises ethics and compliance training so as to diffuse the basic principles of human rights throughout the value chain and ensure that the organisations it collaborates with act in accordance with ENKA’s ethical rules. In 2017, training on the ENKA Code of Conduct, the 56 ENKA Supplier Code of Conduct and Combating Corruption was provided for 1,239 staff of our 57 business partners. The distribution of the personnel who took part in these training activities which we organised by business partner is as follows:

Number of Bechtel personnel 1,020

Number of GE personnel 40

Number of Caddell personnel 54

Number of Kentz personnel 105

Number of Clean Energy Group personnel 20 ENKA SUSTAINABILITY REPORT 2017 DOING GOOD BUSINESS

Responsible Supply Chain Management

ENKA recognises that its suppliers play complaint or infringement of the rules of an important role in its achievements. As business ethics to the ENKA Ethics Hotline All stakeholders including local communities, suppliers, service the company progresses, it also seeks to Unit using the telephone number +90 212 providers, subcontractors and their workers are able to report make its whole supply chain a part of this 376 1010. any complaint or infringement of the rules of business ethics progress. Within the framework set by the to ENKA Ethics Hotline. principles of transparency and the rules of Selection of Suppliers ethics, ENKA builds its relations with the suppliers with which it collaborates on a Suppliers are selected by the procurement basis of quality, a competitive environment, units taking into account criteria related conformity to international standards, sus- to the business lines in which they are ac- tainability and honesty. tive, the needs and expectations of the parties and the particular requirements of In all of the fields in which it operates, ENKA the product or service which has been re- carries out its work in accordance with the quested. All suppliers are treated fairly and local legislation of the countries concerned equally during the procurement process, and the requirements of international stand- which is conducted in accordance with the 58 ards, and without compromising its ethical procurement procedures, supplier selection 59 rules. In this context, it expects its suppliers procedures and other relevant requirements and collaborators to act in accordance with drawn up by ENKA and its subsidiaries. the rules of ethics and fulfil the requirements of responsible management. With its Any company which wishes to enter into a philosophy of constant improvement and business relationship with ENKA can reg- joint value creation, ENKA assesses all its ister on the ENKA Global Vendor Portal. This suppliers depending on their fields of ac- portal, known as the ENKA Global Vendor tivity, and reviews their supply chain risks Network (EGVN), contains company infor- and environmental, social and economic mation for all suppliers, service providers, sustainability. subcontractors and all other kinds of third party with which a business relationship has As noted under the heading “Ethics and been entered into in the company’s fields of Compliance”, ENKA published the ENKA activity. Information about these companies Supplier Code of Conduct in four lan- is retained within ENKA. guages in 2017 – Turkish, English, Russian and Arabic. It informed its new and existing The ENKA Global Procurement Management suppliers about this through various com- System (EGPS) is a global purchasing and munication channels and on its own web- warehouse management software pro- site. This requirement is included in all the gramme which has been developed to keep contracts signed with suppliers, and these track of the whole procurement process firms and their employees are expected to from end to end, starting with procurement conduct their activities in accordance with planning and proceeding via the receipt of the ENKA Supplier Code of Conduct. offers, opening of tenders, evaluation of tenders and issue of purchase orders to ship- In the same way, the ENKA Ethics Hotline, ping, warehouse acceptance and stocking available in six languages, was established and finally the issue of the goods. The pro- and went into operation in 2017. All stake- gramme makes it possible to record and holders including local communities, sup- control purchases and movements of mate- pliers, service providers, subcontractors rials and equipment at all stages of the pro- and their workers are able to report any curement process. ENKA Ethics Hotline: +90 (212) 376 10 10 ENKA SUSTAINABILITY REPORT 2017 DOING GOOD BUSINESS

Before reaching an agreement with any sup- criteria is the supplier’s performance in plier, the ENKA procurement units make a terms of the Environment and Health and pre-qualification assessment of the com- Safety at Work. Suppliers with which ENKA pany in question. The criteria for prequali- works or is contemplating working have to Supervision of Suppliers activities in line with these plans, and hence fication include the supplier’s conduct and meet comprehensive and detailed selection to the suppliers making improvements in attitudes in matters of ethics, compliance criteria in the areas of Worker Health and In line with the aims of sustainable supply their existing systems. During the reporting and sustainability as well as the quantity of Safety (H&S) and the Environment. Some of chain, monitoring and evaluation of the per- period, audits were conducted at approxi- the product or service to be purchased, the these criteria are as follows: formance of the suppliers is one of the most mately 200 supplier firms. level of risk, the supplier evaluation results, important conditions for the healthy opera- time and cost analyses, quality assessment • Existence of a pledge concerning H&S tion of the supply chain. If the supplier evaluations reveal cases of analyses and the supplier’s environmental and the Environment non-compliance, then the management performance and business experience. ENKA operates an evaluation system on of the supplier is informed as a matter of • H&S and Environment Management an electronic platform in order to measure urgency. Depending on the nature of the During the reporting period, issues related Systems the success of its suppliers in terms of per- failure and the provisions of the contract to sustainability were added both to the cor- formance, time, cost, quality, health and made with the supplier, other measures may • The supplier’s plans and procedures for porate procurement procedures and to the safety at work, and environmental and so- also be taken, such as warnings, penal action H&S and the Environment and the related criteria for the prequalification and evalua- cial matters. and the cancellation of the contract. records 60 tion of suppliers. Chief among these issues 61 In 2017, a number of new items related to ENKA evaluated 7% of the suppliers with were the following criteria: • The number and frequency of H&S acci- sustainability were inserted in question- which it was working or intending to work dents in the past five years • Management systems for the Environment naires used for performance evaluation. in 2017 from the point of view of H&S and and Health and Safety at Work • The number and volumes of leaks and Performance evaluations were carried out Environmental and Social matters. As a re- spills resulting from the supplier’s activi- for a total of 470 firms during the course of sult of these evaluations, 19 suppliers were • Measurements for water consumption, ties in the past five years the year. These evaluations were conducted deemed unfit to work with. carbon footprint and waste management electronically via the ENKA Global Vendor • The number of personnel within the Database. • Pledges to do business in conformity Local Procurement organisation of the supplier who are with ethics and human rights directly concerned with H&S and the In future years, sustainability audits will ENKA does a considerable amount of local be a part of ENKA’s cooperation with the • Policies and procedures for preventing Environment procurement for its projects in various re- suppliers and service providers which hold child labour and forced labour gions of the world. In this way, it supports • Legal penalties incurred by the supplier a strategic importance for the company. the economic progress and development of • Policies and procedures concerning These audits are planned to be conducted the local communities. ENKA uses the con- • Engagement in social responsibility bribery and corruption in conjunction with independent audit in- cept of “local suppliers” to refer to suppliers projects stitutions commissioned by ENKA, and will registered within the geographical borders • Policies and procedures for the preven- Suppliers are classified according to the sec- particularly focus on the suppliers’ manage- in which it operates. tion of discrimination and harassment tors in which they operate, the amounts and ment of Human Rights, Social Compliance, Through its local procurement strategy, values of purchases made, critical materials Safety at Work, Health and the Environment, • Legal compliance with employee rights ENKA does not only support the devel- or the services they provide, the continuity and Operations. The sustainability audits are and working hours opment of local communities; it also pre- of the business relationship, the conformity to be held in addition to the existing worker vents the loss of the natural resources and • Social responsibility projects of products and services to international health and safety, environmental and quality time that would be spent on logistics in the standards, time and resource limitations and audits. case of an international procurement and • Assessment of the supplier according to their reasons, and strategic importance and In the light of these audits, areas where im- obviates related social and environmental social and environmental compliance cri- risk categorisation. This approach guaran- teria by firms with which it is in contact provements are needed are identified with impacts. tees the procurement of outputs which are the aim of contributing to the preparation in accordance with the requirements and Considering the business lines in which ENKA of action plans by the suppliers containing The ratio of products and services ENKA which provide the maximum value added operate, one of the topics of greatest impor- the necessary corrective and sustainable İnşaat purchased from local suppliers to its and overall benefit. tance among the selection and assessment actions, to the conduct of the suppliers’ total procurements within the reporting period, is at 46% on a consolidated basis. ENKA SUSTAINABILITY REPORT 2017 DOING GOOD BUSINESS

We at ABB offer many products to ENKA and we receive orders for some of the projects.

We are proud of ENKA’s ethics and compliance programme. As you know, ABB ENKA İnşaat Local Procurement Ratio is one of the leading companies worldwide in terms of the implementation of Rules of Conduct and Business Ethics.

ENKA has similar concepts, which makes our collaboration with them easier. ENKA carries out its work honestly and on time, Local Procurement 46% 54% Global Procurement and its work is of high quality. The company also ensures that a responsible and ethical approach is adopted at every level.

As a part of its responsible supply chain management, ENKA encourages, trains, monitors and develops its business partners, subcontractors and suppliers. I therefore think it is very advantageous to work with ENKA, both on behalf of myself and on behalf of my company.

Local Procurement Ratios By Project Recai İnel, ABB Electric Marketing Manager, 62 63 Transformers and Power Grids

80% 79.69% 75%

49.82% 50% 44.64% ENEXIO designs and supplies air cooled condensers (ACCs) for various power

32.35% plants on which ENKA is engaged as the EPC contractor. 20% 19.30% In general, the relations between ENEXIO (formerly known as GEA Energetechnik Dhi Qar Kashirskaya Route 6 Samawa South Caucasus TAIF Business Tengiz Oil Field West Qurna 1 Besmaya GmbH) and ENKA are conducted in a Combined Cycle Multi-Purpose Pristina-Hani I Combined Cycle Pipeline Centre, Kazan, Development IOT Project, Iraq Combined Cycle Power Plant Shopping Centre, Elezit Motorway Power Plant Extension Russia Works, Power Plant framework of mutual trust, respect and Project, Iraq Russia Project, Kosova Project, Iraq (SCPx), Georgia Kazakhstan Project, Iraq transparency. This creates a win-win These ratios have been calculated using local procurement numbers in 2017, and therefore differ from the project’s overall procurement ratios. situation for both parties.

In our opinion, ENKA is a global player with Preference is also given to local firms at not included in this ratio for reasons of con- significant experience in plant engineering ENKA’s subsidiaries, although they have not fidentiality). Cimtas Ningbo made 90% of its and construction. made any formal commitment in this re- purchases in China, where it is located. CCI spect, provided the firms meet the technical and ENKA TC, which are active in Russia, re- Steffen Schneider, ENEXIO Germany specifications and standards. In 2017, ENKA spectively conducted 90% and 80% of their Project Manager Power had a local procurement ratio of 36% procurement locally. (Purchases from BOTAŞ and GETSAŞ are ENKA SUSTAINABILITY REPORT 2017 DOING GOOD BUSINESS

needs and expectations of its customers. Quality Standards and the requirements of Risk Management The Quality Management System is based the project contract. The quality manage- on the principle of continuous improvement. ment systems developed for the projects Risk Management heads the list of areas to decision taken at the meeting of the Early Compliant with the ISO 9001 standard, do not concentrate on identifying problems which ENKA attaches priority in all of its Risk Identification Committee held on 27th it was first certified in 2001 by the British once they have arisen, but on preventing processes and activities. The implementa- November 2017 with the aims of identifying Standards Institute (BSI). problems from arising in the first place. tion of the risk-based thinking approach is ENKA’s corporate risks, determining the constantly being encouraged by ENKA’s risk reduction measures to be taken, and In addition to ISO 9001 certification, the ENKA’s culture of quality is founded upon senior management. assessing and reviewing the risks which are ENKA Quality Assurance Programme, re- ensuring that the resources necessary for identified. quired for the realisation of construction the establishment, operation, continuity An “Early Risk Identification Committee” works that encompass engineering and de- and constant improvement of the quality (the Committee) has been established In view of the characteristics of the ENKA sign, quality control, contracting and man- management system are available, that au- under the Executive Committee, and a “Risk Group companies and their fields of activity, ufacturing or assembly activities, is in con- thorities and responsibilities with regard to Management Working Group” (the Working the risks addressed also encompass sustain- formity with the ASME Boiler and Pressure quality are spelt out for duties within the Group) has been set up to operate in con- ability issues. The risk categories have been Vessel Code. company and that internal and external junction with the Committee in order to grouped as follows: factors that may affect the capacity of the ensure that an effective risk management quality management system to achieve the • Strategic Risks 64 programme is implemented throughout the 65 For each of its projects, ENKA intended results are identified, monitored company, to determine the principles and and reviewed. This culture also brings forth • Financial Risks develops a reliable quality methods on which this programme is to be the ideas that the conditions of the quality management system that is based, to guarantee the continuous devel- • Operational Risks management system shall be integrated regularly monitored based on opment of a corporate culture of risk man- with the company’s business processes, that agement extending to all projects, units and • Compliance Risks the ENKA Corporate Quality a process approach and risk-based thinking individuals, and to conduct the risk manage- Standards and the requirements • External Environment Risks management are encouraged and the in- ment function effectively. of the project contract. tended and targeted outputs of the quality management system achieved, and that The Committee was established for the • Trade Mark Management Risks customer satisfaction and the principle of purposes of identifying early any risks that The risks identified and the related risk man- For each of its projects, ENKA develops a client-focused working is adopted by all em- could endanger the existence, develop- agement procedures are evaluated under reliable quality management system that is ployees, and upon the provision of support ment and continuity of the company, imple- each heading on the basis of their likelihood monitored based on the ENKA Corporate and incentives for constant improvement. menting measures in response to the risks and impact. For the most important risks, identified, carrying out other work related to Standard Quality Practices managers are given responsibilities at the the management of risk and reviewing the level of the company and/or group of com- risk management systems at least once a panies. The risks identified are categorised year. The Committee convenes at least once under the risk management strategy into in every two months and a minimum of six those which are to be avoided, transferred, times a year. The Committee is made up of reduced and retained. The most appropriate QUALITY MONITORING CUSTOMER MANAGEMENT the non-executive members of the Board of of these strategies is selected in such a way AUDITS PROCESSES SATISFACTION REIEW Directors. as to ensure that each risk remains below WITH DEFINED KPIs The Working Group was set up under a the tolerable levels specified by the Board of Directors.

Products and Service Quality QUALITY CONTINUAL RISK GOALS & KPIs IMPROEMENT MANAGEMENT TRAININGS ENKA has set up and certified a reliable projects which it undertakes, constantly Quality Management System for the pur- developing its corporate knowledge and pose of increasing productivity in the capabilities, and systematically meeting the ENKA SUSTAINABILITY REPORT 2017 DOING GOOD BUSINESS

Health and Safety Effects of Products and All of the stages of these projects, from the Services design stage via construction to test operation and commissioning, are assessed for As part of quality management, the effects their potential impacts on health and safety of products and services on health and at work. At the design stage, analyses made safety are also continuously assessed. The by professional firms are used. During the efforts made by ENKA İnşaat in this respect processes of construction and commis- can be cited as an example. The most im- sioning, inspections are conducted using portant products of ENKA İnşaat are the internationally accepted risk management Customer Satisfaction Management System, continuously are the ISO 9001 Quality infrastructure, buildings and industrial pro- techniques, the hazards related to each ac- the OHSAH 18001 Occupational Health and Management System, the ASME S, U, U2 and jects which for the most part it carries out in tivity are identified, the risks are calculated Safety Management System, the ISO 14001 NB stamps, the OHSAH 18001 Occupational an integrated manner, encompassing both and the measures to be taken to counter Environmental Management System, the Health and Safety Management System, engineering activities and supply and con- these risks are determined and included in ISO 50001 Energy Management System, the ISO 14001 Environmental Management struction works. the relevant construction procedure. and the ISO 27001 Information Security System and the ISO 27001 Information Management System. The most impor- Management Security System. Read more… tant features of the Çimtaş Management Çimtaş Precision Machining conducts its For details: http://www.enka.com/corporate-groups/quality-integrity/ Systems are to prevent defects, to identify 66 activities in line with the AS9100, ISO 9001, 67 About the ENKA Quality Policy: http://www.enka.com/en/wp-content/uploads/media/posters/ any defect on the spot and prevent it from QUALITY_POLICY_ENG.pdf being passed on to the next station, and to ISO 14001, OHSAS 18001 and ISO 27001 meet quality requirements and ensure cus- management systems. Besides these, it as- tomer satisfaction at all stages from the pro- sures the quality of its products and services through manufacturing standards Quality Management at Çimtaş Management Systems is a complete set of duction of the product to its delivery. that meet the requirements of the customer systems established with a view to achieving Çimtaş has developed a quality man- concerned.. With the aim of taking the lead in its sector, and continuously maintaining the require- agement system based on the ISO 9001 Çimtaş Steel has established its own Çimtaş ments of the ISO 9001 and the American standard. Cimtas Pipe manufactures in ac- Quality Management at ENKA Power Management Systems and obtained a total Institute of Steel Construction (AISC) cordance with the following management of 19 national and international certifi- Quality Management System, the American The Quality Management System at ENKA systems and standards: ISO 9001; ISO cates – eight for its management system Society of Mechanical Engineers (ASME) Power Plants has been inspected and cer- 14001; OHSAS 18001; ISO 27001; API Q1, and eleven in technical areas. The Çimtaş PP, R, S, U and U2 stamps, the ISO 10002 tified by the Turkish Standards Institute in 5L and 2B; PED 2014/68/EU; EN 13480, EN accordance with the TS EN ISO 9001 stand- 3834-2, EN 12952-5 and EN10219-1; AD ards, and certificates have been awarded for 2000 HP0; the ASME U, PP and S stamps, all three plants. and ISO 17025. Quality is one of the most fundamental values Cimtas CNBO, meanwhile, renewed its of the ENKA Power Plants Management quality management system at the end of System. The quality activities at the plants 2017 and revised it in the framework of the also ensure the development of the oper- BS/EN/ISO 9001:2015 and AS9100 stand- ation and maintenance services, reduce ards. Product quality and customer satis- losses of time and materials, increase the faction are assured, together with the most effectiveness of production, planning and efficient use of resources, by scrutinising risk employees, and improve the working envi- analyses and CTQ items. Of the 153 kaizen ronment. Routine quality audits are there- projects completed in 2017, 35 were related fore carried out at the plants with the aim to sustainability. These projects focus on is- of maintaining the effectiveness, efficiency sues of safety, worker satisfaction, the envi- and sustainability of the Quality manage- ronment and energy gains. ment System. The systems which Çimtaş Shipyard has established, maintains and manages ENKA SUSTAINABILITY REPORT 2017 DOING GOOD BUSINESS

Besides requesting its clients to evaluate feedback from customers is used both to Customer Satisfaction projects as a whole, ENKA makes use of its improve existing systems so as to contribute “Customer Satisfaction Monitoring” proce- to improvements in future performance and As stated in the first article of the Corporate by means of customer surveys and cor- dures in order to be able to evaluate more to carry out root-cause analysis and perfor- Quality Policy, ENKA’s top priority is respondence. In this way, ENKA has suc- clearly their expectations and views con- mance improvement efforts with a view to Customer Focus and Feedback. In this spirit, ceeded in creating a dynamic structure for cerning each and every aspect of the work increasing customer satisfaction further in ENKA seeks to ensure that customer satis- continuously updating its corporate struc- done during the project. future projects. For the most part, this pro- faction is lasting, and to maintain sustainable ture and manner of operation in accordance cedure is carried out when projects are at relations with its customers. ENKA values with customer’s views and suggestions. Within the reporting period, ENKA İnşaat the completion stage, but there are plans to customer views at all times. It determines conducted customer satisfaction surveys implement it at more than one stage of each The figure below shows the distribu- criteria for projects, and the indicators to for a total of five projects. The results of project in future. be used to determine whether or not these tion of the projects carried out by ENKA these surveys are presented below. The criteria have been fulfilled, in conjunction Construction by country. Countries in which with the customer themselves. In addition, ENKA has worked on less than 25 projects it immediately activates its relevant units to have been grouped together in the “others” consider concerns and ideas expressed by category. As can be seen from the figure, customer, and takes care to respond to their with its customer-focused approach and ENKA İnşaat Customer Satisfaction Survey Results - 2017 68 questions in the shortest possible time. quality of work, ENKA has been able to 69 put down firm foundations in every region 100% In line with its customer-focused way of where it has started to work and hence to 0% working, ENKA has a long tradition of ob- establish sustainable, long-term customer 80% 86% 83% 81% 82% 82% 81% 80% 7% 7% 80% taining and analysing the feedbacks of its relations. 70%

customers after projects are completed 60%

50% ENKA İnşaat – Distribution of Projects by Country 40% 30%

20%

10%

0% Quality Customer Contract Design And Planning Cost Construction Materials Safety Overall Satisfaction Management Engineering Performance Management Management Management 65 27 At Çimtaş, customer satisfaction and the ENKA Systems implements a policy of 33 170 management of complaints are based “Unconditional Customer Satisfaction”. 40 on the basic principles of accessibility, Aware that the software sector is also answerability, objectivity, confidentiality, a service sector, it has structured itself 59 client-focus, accountability and contin- in such a way as to provide a seamless 124 uous improvement. In 2014, Çimtaş Steel service to its customers to enable them documented that it had fulfilled all the to derive the maximum benefit from its conditions of the ISO 10002 Customer products. In this context, the company Satisfaction Management System. It thus supports its customers and gathers feed- became the first company to begin to im- back from them throughout the lifetimes plement this system among all the Çimtaş of its products. Russia Turkey Kazakhstan Libya Saudi Arabia Iraq Other workplaces and within the ENKA group of companies. Çimtaş Shipyards initiated actions to adoptthe ISO 10002 Customer Satisfaction Management System in 2017. ENKA SUSTAINABILITY REPORT 2017 DOING GOOD BUSINESS

Innovation and R&D

Ever since it was founded, ENKA has suc- • the Architectural Project Design Group ceeded in supplying the highest level of design and engineering services in the projects • the Civil Engineering Design Group in which it has been involved, and attached The Design Centre has an important place great value to innovation and research and in the company, with a staff of around 150, development (R&D) activities, with a view 100 of whom are designers. It is respon- to developing these capacities continu- sible for the general design, development, ously. ENKA’s design and engineering ex- innovations and engineering works of all pertise encompasses capacities for archi- new designs to be offered in building and tectural, civil, structural, electrical, instru- industrial structure projects, for managing mentation and mechanical engineering as the process stretching from the proposal of well as piping, process and control systems the designs to the implementation phase, engineering. and for work to improve and increase the efficiency of production processes. 70 In 2016, ENKA established the ENKA Design 71 Centre at its Headquarters with a view to The ENKA Design Centre offers internship maintaining its years-old culture of design opportunities to students studying in rele- and innovation and of bringing the design vant departments of universities and voca- and engineering activities which its expe- tional and technical schools. Through these rienced staff were already carrying out to- internship programmes, ENKA aims to con- gether in a wide-ranging organisation. As a tribute to the sector, to share with the stu- result, it became the first Turkish construc- dents the internal culture of engineering and tion company to have a Design Centre rec- innovation which it has developed, and to ognised by the Ministry of Science, Industry train up potential future personnel. and Technology of the Republic of Turkey. In 2017, preliminary discussions commenced The ENKA Design Centre has set itself the with Istanbul Technical University con- strategic goal of developing joint projects cerning training, the development of joint and collaborations with institutions such as projects and support for academic work on the Technology Development Foundation topics related to “Sustainable Buildings and of Turkey (TTGV), the Scientific and Building Information Modelling (BIM)”. Technological Research Council of Turkey (TÜBİTAK) and the Ministry of Science, Under the TÜBİTAK 4005 Project, there are Industry and Technology, which provide plans for the ENKA Design Centre to sup- considerable support to the private sector port the Science, Technology, Engineering for R&D and Design projects. and Mathematics (STEM) education project as well as teachers serving in the Science The ENKA Design Centre hosts groups of and Arts Education Centres (BİLSEM) ENKA engineers working in three different throughout Turkey. This project will be car- areas: ried out as a partnership between ENKA, • the Energy Engineering Design Group TÜBİTAK and Marmara University in the summer of 2018. ENKA SUSTAINABILITY REPORT 2017 DOING GOOD BUSINESS

Examples of Innovative, Environment-Friendly Practices in ENKA Projects:

Kashirskaya Multi-Functional Trade Center One aim of the project was to make the most effective possible use of natural light in the interior of the centre. Accordingly, daylight studies were carried out and use was made of Building Information Modelling (BIM) to help reach a solution whereby the interior volumes benefit most effectively from natural light.

Sadi Gülçelik Administrative Centre

Gelendzhik Multi-Functional Medical Centre: The facade of the medical centre has been designed in an optimal manner to ensure maximum use of natural light without compromising the comfort of the patients.

72 73

Kashirskaya Multi-Functional Trade Center

Sadi Gülçelik Adminsitrative Centre: This building is to be constructed at the ENKA Sadi Gülçelik Facilities in Istanbul. During its design, daylight and shadow analyses were carried out, Gelendzhik Multi-Functional Medical Centre taking the topography of the land into account, so as to make maximum use of daylight. Riverside Business Centre Renovation Project: During the renovation of the frontage of this office complex in Moscow, arrangements were made to meet the needs of a modern business centre and derive maximum benefit from natural light by analysing the apertures. ENKA SUSTAINABILITY REPORT 2017 DOING GOOD BUSINESS

Use of Natural Light for Internal Illumination (ENKA Health Centre): While renovating the Innovation and R&D at ENKA Systems Innovation and R&D at Çimtaş health centre for the use of employees working at ENKA Headquarters, the need for natural lighting in the reception area was met with the aid of light tube lighting elements which make ENKA Systems is a technology and software When Çimtaş Steel was recognised as the use of lenses to bring the sun rays into the interior volume. When there is no daylight, the sun company which was established as an ENKA 274th R&D centre in 2016, following its appli- is still used for lighting, with electricity derived from solar energy. subsidiary in 2017 to develop technologies for cation to the Ministry of Science, Industry and the construction sector, turn innovative ideas Technology, this represented a first for all of into products with real-life applications, and the Çimtaş companies and for the entire ENKA engage in R&D activities. The basic aim of the group. In line with its target of pioneering R&D company is to carry out technological inno- and innovation, the centre engaged in 51 pro- vations and R&D activities within the ENKA jects and three patent exercises in 2017. These organisation. projects included three TÜBİTAK projects and one “VAP” project (a state-supported efficien- ENKA Systems is operating in the following cy-increasing project for energy management three main areas: systems). Meanwhile, the work which began in 2017 on establishing an R&D centre at Çimtaş • the development of work processes pro- Precision Machining continues. One TÜBİTAK viding for the emergence, management project was completed in 2017 and the appli- and implementation of innovative ideas in 74 cation and approval processes for two other 75 the construction sector, and particularly in TÜBİTAK projects are under way. large-scale projects

• the conduct of R&D activities concerning the technological solutions required to manage large-scale projects

• ensuring that the technological products ENKA Health Centre generated are developed, supported and marketed

Roofing Practices: In projects designed In December 2017, ENKA Systems was rec- within ENKA, every effort is made to abide ognised as an R&D Centre by the Ministry by LEED green building principles. Reflective of Science, Industry and Technology of the surfaces are preferred over absorptive sur- Republic of Turkey. In addition to the soft- faces with the aim of making savings on the ware programmes which it develops, its R&D cooling loads within the building. projects lead both to the emergence of new Mechanical Heating and Cooling: In the de- products and to the addition of new features sign of mechanical heating and cooling sys- to existing software. tems in projects designed within ENKA, low energy-consumption equipment is preferred in order to save energy, provided that it is suitable for the design. ENKA SUSTAINABILITY REPORT 2017 DEVELOPING COMMUNITIES

76 77 DEVELOPING COMMUNITIES ENKA SUSTAINABILITY REPORT 2017 DEVELOPING COMMUNITIES

ENKA mainly employs locally recruited staff on the projects, which it carries out, and works with local subcontractors and business partners. By training local personnel and sharing its knowledge and experience, it contributes to the development of local workforces, sectors and economies.

Meeting the Needs of Communities for Infrastructure and Superstructure

ENKA contributes to the development and • Six thermal power plants with a total in- Among these projects are the Adapazarı, These plants have been regarded as exem- welfare of the countries in which it conducts stalled capacity of 4,070MW Gebze and Izmir power plants, which are also plary investment projects by global standards operations through its main business activ- operated by ENKA. In total, more than 7,000 on account of their performance in terms of ities, which aim to create lasting assets and • Thirteen natural gas combined cycle persons worked in the construction of these production and environmental sensitivity, and leave a positive heritage. ENKA has carried power plants with a total installed ca- plants at various stages. Having acquired ex- in view of their technical infrastructure and the out a total of more than 500 oil, gas and pet- pacity of 14,296MW perience of engineering and construction pro- management systems in use. rochemical, power plant, infrastructure and cesses on these projects, these workers were building projects, employing more than 400 • Eight simple cycle power plants with a later employed on power plants and other en- Following these projects in Turkey, ENKA has thousand people in Turkey and abroad, and total installed capacity of 4,166MW. ergy projects undertaken by ENKA in other also constructed several power plants in Iraq. accelerating the development of local econ- countries, and assisted the local people in These plants will contribute to the development omies to this date. A high proportion of these projects have these countries to acquire experience in the of the country and its gradual post-war re- been constructed in developing countries. energy sector. covery. They have added more than 4,000MW 78 Since the 1970s, ENKA has been Turkey’s They have been designed and put into op- of power to the Iraqi grid. 79 leading firm in the design and construction eration in order to overcome the shortages Out of the projects which commenced in 2000, ENKA mainly employs locally recruited staff of power plants. It has engaged in long-term of power, which constitute as one of the the Adapazarı and Gebze plants were com- on the projects, which it carries out, and works collaborations with global firms active in this greatest challenges faced by developing pleted in 2002 and the Izmir plant in 2003. With with local subcontractors and business part- field. ENKA’s experience with power plants countries. these power plants starting operation, ENKA can be summed up as follows: became Turkey’s largest private sector power ners. By training local personnel and sharing generator. In 14 years of commercial operation, its knowledge and experience, it contributes to the ENKA power plants have generated 400 the development of local workforces, sectors billion kilowatt-hours of electricity. With the and economies. capacity to generate 32 billion kilowatt-hours In the engineering and construction activi- annually, they account for 11% of Turkey’s total ties, which ENKA has been carrying out in power output. These figures show the impor- Tengiz, Kazakhstan, since 2013, the ratio of tance of these plants for the Turkish economy. local (Kazakh) employees has reached 92%, and at no stage of the work has this ratio ENKA SUSTAINABILITY REPORT 2017 DEVELOPING COMMUNITIES

fallen below 70%. Approximately 20,000 particularly in the Russian Federation, in Kazakh personnel have been employed on member countries of the Community of the project directly since its inception. In Independent States (CIS), and in Africa. As a addition, ENKA has worked with more than result, it has supplied the countries in ques- 100 local subcontractor firms, providing tion with essential needs and contributed to 20,000 employment for about 10,000 more local local development while acquainting these Number of local employees in the engineering and construction personnel. As a result of this strategy, the countries with quality and safe engineering activities undertaken in Kazakhstan 80 local subcontractors have become more practices. 81 proficient at construction work and some have acquired the capacity to work directly ENKA’s experience with motorway, bridge with the owner of the project. More than 1.2 and tunnel projects goes back to 1958. In million person-hours of training have been the 1970s, ENKA carried out the Anatolian provided to employees during the course Highway project, which formed an impor- 1,200,000 of the project. As a result, local personnel, tant part of the development of Turkey’s most of whom had no experience, have Infrastructure Network. This motorway is been turned into proficient and experienced of critical importance as it links Turkey’s Training hours provided to the employees during the projects (person-hours) workers. Many senior staff have been trans- European part of Istanbul with its capital, ferred to Kazakhstan’s leading firms, where Ankara, in the continent of Asia. they hold important positions. More than Immediately after the construction of the 100 million person-hours have been worked Gerede-Ankara Motorway, ENKA made on the Tengiz projects in Kazakhstan, which its mark with new motorway projects in began in 2003 and are still continuing today, Eastern Europe, completing motorways and there have been no fatal accidents. The which brought touristic and economic de- longest period worked without lost time in- velopment in their wake in Croatia, Romania, cident was around 30 million person-hours. Albania and Kosovo. The total value of the labour, goods and services obtained from the local market for Over 60 years, ENKA has carried out all the these projects is about US$750 million. necessary construction works for more than one thousand kilometres of motorways, With respect to the building construction bridges, tunnels and viaducts in Libya, Saudi sector, ENKA has worked on urban devel- Arabia, Croatia, Romania, Kosovo, Albania opment projects, hospital buildings, airport and Turkey. This work is continuing today. projects, factories and production facilities, ENKA SUSTAINABILITY REPORT 2017 DEVELOPING COMMUNITIES

Contributing to the Development of the Engineering Profession

Engineering is a profession and applied sci- Employment of Intern Engineers ence which conducts research, prepares plans and projects, and generates prod- A total of 79 trainee engineers and archi- ucts, methods, systems, innovations and tects were employed in 2017. Throughout technology in accordance with the princi- their internships, all of them were provided ples of the basic sciences for the purposes with applied training on ENKA’s engineering of increasing the benefits which humanity projects and activities, and thus had the op- 82 derives from natural resources and phe- portunity to improve themselves in terms 83 nomena and of providing people and com- of engineering practices and to gain work munities with technical solutions to their experience. In addition, ENKA’s corporate problems. knowledge, acquired as a result of 60 years of engineering activities, was passed on to ENKA’s sustainability priorities include the interns. the training of engineers who have ethical values, think scientifically and are sensitive ENKA Academy to social and environmental topics, who take the impact of engineering on the develop- With respect to the continuous development of communities into account and plan ment of the engineering profession, ENKA for the ways in which their work will interact Academy aims to develop employees’ pro- with other fields. These priorities also help fessional competencies, their technical engineers keep track of advances in their knowledge and skills, their social skills and profession and teach themselves and turn their leadership and management abilities. their knowledge into corporate knowledge, To this end, it organises various training period through research and development, Corporate Knowledge, Library and develop their engineering knowledge activities, seminars, conferences and work- the design of new production technolo- and Memberships and skills in such a way as to contribute to shops. A total of 8,320 person-hours of gies, innovation in project design and engi- the international community through discov- training was provided in 2017 for the devel- neering activities and design innovations for ENKA has established a body of corporate eries and innovations. Furthermore, through opment of the engineering profession. time-cost-performance optimisation. knowledge for the purposes of conducting the priorities, stakeholders are brought to- The Design Centre completed the design existing processes effectively, standard- gether to contribute to the development of ENKA Design Centre ising the quality of its products and services the profession and to create environments in and engineering works of 7 projects in 2017, and work continued on the design and en- across all locations, institutionalising the which development is the field, good prac- ENKA set up its design centre in 2016, experience it has acquired, perpetuating its tices and problems are discussed. gineering works of another 11 projects. A which is licensed by the Ministry of Science, total of approximately TRY30 million was corporate culture and clarifying its working In the reporting period, ENKA carried out Industry and Technology. spent on the design and engineering works rules and methods. This knowledge is made the activities detailed below in the context of these projects. available via an electronic library accessible With its total staff of 168 including 112 de- to all employees. In addition, employees can of its efforts to contribute to the develop- signers, ENKA Design Centre, made valu- ment of the engineering profession. access numerous international libraries and able contributions to the development of the publications by way of this portal. engineering profession within the reporting ENKA SUSTAINABILITY REPORT 2017 DEVELOPING COMMUNITIES

ENKA Group

11, 4 8 6 A monthly average of 11,770 local personnel were employed on the ongoing projects.

Local Employment 48,4% The consolidated local staff ratio for all the projects and ENKA creates significant local employment order to develop the skills required to fulfil subsidiaries was 48.4% opportunities both in the activities it carries the needs and expectations of its projects. out in Turkey and through the projects it un- These programmes include training in social dertakes in various other parts of the world, skills as well as training in vocational skills 23,000 particularly in regions where employment for the construction profession. ENKA em- Training was given to a total of 13,500 local opportunities are limited. A large proportion ployees therefore enjoy significant opportu- personnel out of a total of 23,000 staff. of the tasks, which ENKA carries out under nities to improve themselves continuously in its projects, are labour-intensive. Through its their fields of expertise and to be considered policy of recruiting the manpower needed for different fields of work and different job 1,100,000 for these tasks locally, ENKA creates con- opportunities at a future date. The total person-hours spent on Occupational Health and siderable economic value in the locations Safety and Environmental Training reached 1,100,000 person- where it carries out its activities. The data on local employment in 2017 are as follows: hours. ENKA plans and implements skill devel- 84 opment programmes for its employees in 334 85 A total of 334 interns were employed.

ENKA İnşaat

35% The ratio of local white-collar personnel working on the projects was 35%. 12,225 12,225 person-hours of training was given on technical subjects,

515 A monthly average of 515 local personnel were employed at Istanbul Headquarters. ENKA SUSTAINABILITY REPORT 2017 DEVELOPING COMMUNITIES

Number of Local Employees employed in the Senior Management throughout ENKA Examples of Local Employment from the Projects

Local Foreign Percentage Number of Local Workers employed in the Senior Management 196 15 93%

The table below gives a breakdown of the white-collar personnel working in various positions at ENKA İnşaat. “Local personnel” is defined as the employees hired from the host countries in which the activity is being carried out. The personnel who are citizens of a third country, other than Turkish citizens and citizens of the country where the work takes place, are categorised as “other personnel”. 86 87 Category of Personnel Ratio

Turkish Personnel 50%

Local Personnel 37 %

Subcontractor Personnel 2%

Other Personnel 11%

Compensation

Under no circumstances are ENKA employees paid less than the minimum wage set by the Route 6 Motorway Project, Kosovo countries where they are working. The great majority (99.9%) of ENKA’s employees receive This 65-kilometre two-way motorway project links Pristina, the capital of Kosovo, to Hani wages higher than the minimum wage. I Elezit on the border with Macedonia, forming part of the Southeast Europe Motorway Network. During the most intensive period of the project, a total of 2,465 personnel from Women Men 11 different countries including Kosovo, Turkey, Albania, Romania, Macedonia and the from the USA were employed. Approximately 80% of the workforce requirements of the Percentage of employees receiving the minimum wage 0.1% 0.1% project were met by employing citizens of Kosovo. A total of 40,000 person-hours of Percentage of employees receiving more than the minimum wage training was provided on the environment, safety, health, quality and other significant 99.9% 99.9% skills during the reporting period. ENKA SUSTAINABILITY REPORT 2017 DEVELOPING COMMUNITIES

South Caucasus Pipeline Expansion (SCPx) Project, Georgia

Under the South Caucasus Pipeline Expansion (SCPx) Project, BEJV, a joint venture between Bechtel and ENKA, is responsible for the construction of two compressor sta- tions and a pressure reduction and metering station at a total of three different locations within the borders of Georgia, together with all related earth works. A monthly average of 2,400 personnel were employed on the project, and 68% of the total manpower requirements were met through the employment of Georgian nationals. A total of 265,000 person-hours of training was provided to the local personnel in the scope of this project.

Tengiz Projects, Kazakhstan

Thanks to the local employment policy implemented since 1993, and in line with the recruitment-training-development-sustainability practices in force, the percentage of Kazakh citizens employed on the ongoing projects has reached 90%. Local employment 88 efforts are continuing in order to maintain this success. 89

In 2017, a monthly average of 2,250 local staff were employed on the projects undertaken in Kazakhstan, and the ratio of local personnel to total project personnel was 85%. In all, 145,000 person-hours of training was provided to the local employees.

Çimtaş Steel Welding Training Workshop and Employment-Backed Welding Training

Welders have been trained and certified by the Çimtaş Welding Technologies Centre at the Çimtaş Steel Welding Training Workshop since 1981. A School of Welding was also established within the Welding Department at Cimtas Pipe in 2006.

The welding training is organised by a team of experts including welding trainers, welding inspectors and welding engineers. To date, more than 4,500 welders have been trained. The proficiency of the welders trained is validated by independent certification companies conducting examinations in line with international standards (ASME, EN, AWS, LR etc.).

Cimtas Pipe collaborates with institutions and schools in its region, such as the Kashirskaya Multi-Functional Trade Centre, Russia public employment agency İŞKUR, the Bursa Chamber of Commerce and Industry Educational Foundation (BUTGEM), the Coşkunöz Educational Foundation, the A monthly average of 2,400 local personnel were employed on the Kashirskaya Multi- Bursa Ovaakça Şarık Tara Vocational and Technical Anatolian High School and the Functional Trade Centre project, which is due to be completed in 2018. The ratio of local Bursa Gemlik Vocational and Technical Anatolian High School to provide employ- personnel to the total project payroll was 92%. Approximately 280,000 person-hours of ment-backed welding training programmes. The welders trained are employed in training was provided to the local personnel during the reporting period. the company’s factories. In this way, Çimtaş acquires a qualified workforce as well as making a contribution to the national vocational training movement. ENKA SUSTAINABILITY REPORT 2017 DEVELOPING COMMUNITIES

102-44

Before starting any activity, ENKA carries out environmental and social impact assessment specific to that activity. If the impacts are likely to vary by gender, then a gender impact assessment is also taken into consideration during the assessment. Socio-Economic Impact Assessment

The potential impacts of ENKA projects on that it is accepted by the communities in the In the case of the South Caucasus Project Social Community Engagement the regions where they are to be carried out area where it is being built and satisfies these Expansion (SCPx) project in Georgia, the im- Manual are comprehensively examined right from communities through the opportunities it cre- pact assessments identified the main impacts the investment stage – or before the work ates. In this context, ENKA aims to achieve that could create risks for the environment and ENKA developed its Social Community is accepted in the case of contracting ac- success by blending the principle of Caring the communities in the region, given the lo- Engagement Manual in 2017 with a view to tivities. This analysis is conducted under the for Employees, which is never compromised, cation of the project and the nature of the successfully manage all of the positive and main headings of the ENKA Sustainability with the principle of Developing Communities work, as the impact on wildlife, the impact on negative impacts it has on communities in Policy, which also constitutes the core of in the regions it works. farming and bee-keeping as means of liveli- the places where its projects and its various its Sustainability Strategy – namely, ”Doing hood, the risk of traffic accidents, the envi- business operations are located. This manual Good Business”, “Caring for Employees”, Before starting any activity, ENKA carries ronmental impact of dust, noise and vibra- has been made available for the use of all 90 91 “Developing Communities”, “Reducing out environmental and social impact assess- tions, and the risk of fire. In 2017, five neigh- ENKA units. It explains the main elements of Environmental Impact”. ment specific to that activity. If the impacts bouring villages were closely monitored in the managing interaction with communities and are likely to vary by gender, then a gender framework of these potential impacts. Due to the role of the project management in this In line with the principle ‘Doing Good Business’, impact assessment is also taken into consid- the systems implemented and the measures process. Examples and reference files that and regardless of the location or nature of the eration during the assessment. Based on the taken, no negative impact was observed in are responsible for projects and other busi- work, ENKA maintains the same quality in all results of the assessment, environmental and 2017 in any of the specific areas mentioned. ness operations can benefit during the pro- parts of the world and conducts its business social impact management plans are drawn cess, which is also included in the manual. on a basis of sound risk management, a re- up and put into effect. For the ongoing Kashirskaya Multi-Functional sponsible attitude to management, effective Trade Centre Project in Russia, the potential The following three main elements need leadership, a robust supply chain and keeping ENKA’s first aim is to eliminate any nega- risks on surrounding communities were of a to be taken into account in activities con- its stakeholders informed and involved at tive impact. Where this is not possible, var- different dimension as the project is located cerning the community in all the places every stage. ious other solutions are implemented, such as in the city centre. The risks identified were an where ENKA operates: reducing the negative impact, isolating it or increase in traffic accidents, damage to citi- In order to reduce the environmental impact taking engineering precautions. Regular meet- zens or public property due to falling objects, Avoiding or Eliminating Negative of any work it is to perform, ENKA first con- ings and training activities are held in order to environmental dust, noise and vibration, and Impacts ducts Environmental Impact Assessments keep stakeholders informed and increase their damage to the surrounding buildings and Increasing Positive Impacts held by qualified firms and assesses them. awareness. Examples of these include occu- communities due to the outbreak of fire. As Teams of environmental engineers are formed pational health and safety committee meet- a result of the precautions taken, no situation Social Investment at the corporate and project levels for their ings, meetings with local school principals, that could create a negative impact occurred implementation. Engineering work is done at meetings with the administrators of the set- at the Kashirskaya project during 2017. While conducting the activities in question, the design stage to increase efficiency, and tlements nearby, and the provision of educa- all units pay attention to the ENKA Code of waste management plans are drawn up during tion for schoolchildren. During all projects and business activities, Conduct and to the legal requirements of the initial analysis of investments or during the all kinds of resettlement processes in the lo- To ensure stakeholder participation and main- the country where the activity is to be car- pre-mobilisation stage of construction works. cations of the activity are planned and con- ried out. tain the process of continual improvement, a ducted by ENKA in accordance with prede- A detailed analysis is made of the importance feedback/complaints procedure is established termined principles drawn up in conformity of the investment or contracting activity to be and made available for the stakeholders’ use. with international legislation. There were no carried out both for the communities where The feedback and complaints received are resettlement processes related to ENKA’s ac- the project is located and for ENKA itself. It dealt with in the manner set forth in the rele- tivities in 2017. is well known that the most important way to vant procedure. ensure the success of a project is to ensure ENKA SUSTAINABILITY REPORT 2017 DEVELOPING COMMUNITIES

Community Investment Field Investment ENKA unit Description Country Value Social Education Sport Health Environment Support Community Investment ENKA İnşaat ve Turkish Education TRY23,690 Turkey Sanayi A.Ş. Foundation (TEV)

Organization that ENKA İnşaat ve helps children in need USD15,000 Iraq Sanayi A.Ş. “Children in Crisis” ENKA İnşaat Grants and ve Sanayi A.Ş.- internships for local EUR76,200 Kosovo

Route 6 Project university students ENKA İnşaat Church donation for ve Sanayi A.Ş.- EUR17,613 Kosovo river bed regulation Route 6 Project ENKA engages in social community invest- established for the purpose of providing ment in all the places where it operates, with education to children affected by the ENKA İnşaat Tree planting ve Sanayi A.Ş.- campaign with local EUR1,357 Kosovo

the aim of enabling the local communities earthquake; the Private ENKA Vocational Route 6 Project schools living in these regions to benefit from indus- and Technical Anatolia High School, which ENKA İnşaat Donations to primary trial development and to develop in social opened its doors in Kocaeli in 2008; the ve Sanayi A.Ş.- EUR992 Kosovo schools and cultural terms. ENKA carried out ap- Private ENKA Science and Technology High Route 6 Project 92 proximately TRY54 million (TRY53.87 mil- School, also in Kocaeli, which has been oper- 93 ENKA Kocaeli School lion) worth of voluntary social investment ating since 2014, and ENKA Culture & Arts. TRY12,807,687 Turkey Foundation education expenses globally in 2017. All these units and all the individuals who Domestic and belong to them are working to expand the ENKA The ENKA Foundation is making a substan- overseas study grants TRY6,438,871 Turkey opportunities, which this pool of institutions Foundation for students tial part of these investments. The following and experience creates, and to share them Domestic study units operate under the ENKA Foundation: with broad sections of society. ENKA grants (Adapazarı TRY18,160,133 Turkey ENKA Sports Club; Istanbul ENKA Schools, Foundation School) which began operating in 1996; Adapazarı Through the ENKA Foundation and its units, Assistance to the ENKA Schools, which started up immedi- ENKA makes social community investments ENKA ENKA Sports Club TRY11,835,000 Turkey Foundation ately after the 1999 earthquake and was in the five following fields: Association

ENKA Grants to Athletes TRY791,240 Turkey Foundation

ENKA Awards to Successful TRY1,489,955 Turkey Foundation Athletes

Education Sport Health ENKA Assistance for art and TRY944,672 Turkey Foundation culture

ENKA General donations TRY893,493 Turkey Foundation

Social Support Environment ENKA SUSTAINABILITY REPORT 2017 DEVELOPING COMMUNITIES

ENKA Foundation

The ENKA Foundation was established in towards sport and make sport a part of their 1983 with the core idea of maintaining the lives, to identify the sporting potentials of tradition of foundations in Turkey and ad- the talented among them using scientific vancing the concepts that have been the methods and train and raise them to be building blocks of civilisation in today’s champions who can achieve international age. Accordingly, the natural mission of success, and to strengthen education and My journey with ENKA began when I joined the ENKA Sports Club swim- the Foundation is to orient Turkish youth social infrastructure. ming team in 2009. I have now been representing ENKA Sports Club for nine years at both national and international competitions events. During this period, I have taken part in the London Olympics, 2012, won four medals in European championships, been Turkish Champion more than 50 times and broken 23 Turkish records. ENKA Sports Club has played an essential role in my successes by providing me with finan- ENKA Sports Club cial and moral support throughout my sport career. Furthermore, I am able to continue my education at Koç University with ENKA Sports Club has 1,250 licensed ath- made up of talented young people from its the scholarship I got from the ENKA letes in training at its own facilities, with sports schools first and foremost, from the Foundation. 94 95 the support of 80 specialised coaches. The ENKA Schools and from its extensive social Having been a part of the ENKA family, Club takes part in national and international environment. About 700 candidate athletes I have experienced first hand what the sporting contests in those branches of are being trained within the Young ENKA phrase ‘It’s a privilege to be a part of the sport in which it is active. Under the slogan Family to be the champions of the future. ENKA family’ means in every aspect of my “The Future belongs to the Young”, the The ENKA Sports Club is one of Turkey’s life. Having been with ENKA for many years, Club strives to equip thousands of children locomotive clubs both in terms of the tal- I have experienced the meaning of this phrase with superior mental and physical qualities ented young people whom it has won over in many areas of my life. Through ENKA’s broad through the top-quality training system, for Turkish sport through its training activi- sources, I have had the opportunity to work with which is implemented within its teams and ties and in terms of the successes, which its trainers with many achievements to their names in sports schools. It has provided Turkish sport leading athletes have achieved at the inter- the international arena. I have pursued my sports with many talented young athletes. The Club national level. activities in the world-class Sadi Gülçelik facilities. I have had the opportunity to attend many of the cul- draws on a rich source of potential athletes tural activities organised by ENKA Culture & Arts, and seen many of the country’s leading performers on stage. ENKA has made a significant contribution not only to my sporting career but also to my social, cultural and educational life.

It is unfortunately a challenge in this country to be a professional athlete and continue our education at the same time. In About 700 candidate athletes are being trained this respect, ENKA is an organisation with very few rivals anywhere in the world. Due to the value it places on sports and ed- within the Young ENKA Family to be the cham- ucation, ENKA enables young athletes like me to follow their Olympic pions of the future. dreams while simultaneously getting a top-quality education. My expectation from ENKA is to sustain its culture while growing as a leading institution in this field.

Ediz Yıldırımer, third-year student at Koç University Department of International Relations and part-time staff-member of the ENKA İnşaat ve Sanayi A.Ş. ENKA SUSTAINABILITY REPORT 2017 DEVELOPING COMMUNITIES

I have had a long-term relationship with ENKA ever since I gave the opening concert at the Auditorium in 1999. Every year we organise at least two concerts – one in the open air and the other in the closed auditorium. ENKA Culture & Arts ENKA’s concerts have a thirty year-old tradition of introducing people to music and art. I think this is very important for Turkey. In the summer, especially, we have ENKA Culture & Arts develops projects Air Theatre. With its professional technical organised concerts with ENKA that have reached wide which contribute to the continuity of cul- equipment and contemporary stage ar- audiences. Sometimes I have given solo concerts and ture and art and introduce audiences to the rangements, ENKA Culture & Arts has wel- sometimes I have taken part in various projects alongside artists of the future. Its programmes, which comed innumerable artists and groups from young artists, actors and musicians. These concerts have include examples of all of the arts, take national and international circuits, and made attracted a lot of public interest. place in the ENKA İbrahim Betil Auditorium, it possible for art-lovers to attend many dif- What ENKA has been doing for 30 years is very important which has a capacity of 600 seats, and in the ferent kinds of event. for art and especially for Turkish performers. A lot of 1,000-seater ENKA Eşref Denizhan Open Turkish performers have been able to find a platform for presenting their art through ENKA. With its summer and winter projects, I believe it makes a great contribution to the cultural and artistic life of Istanbul. These concerts are important occasions for putting interesting projects before the public and for the value placed on performers of the arts.

96 As the artistic community, we are very grateful to ENKA 97 for everything it has done so far. Our only desire and I have been organizing events in collaboration with expectation is for it to keep doing this for many more ENKA since 1997- a total of 21 years. Every season, decades. we perform the plays we put on for ENKA audiences in the Open Air Theatre in the summer and in the Fazıl Say, Musician Auditorium in the winter. Sometimes we also hold artistic conversations before the performances, with question and answer sessions with students.

For years, ENKA has been making a commendable effort to offer its audiences quality works in every branch of the arts. By hosting our artistic productions in its theatres frequently from time to time, it also brings us together with a select audience.

I hope it continues its activities and intensify and enrich them in the years to come.

Genco Erkal, Actor

About ENKA Foundation: http://www.enka.com/sustainability/home/society/enka-foundation/ About ENKA Sports Club: http://www.enkaspor.com/en/ About ENKA Sports Club’s activities in 2017: http://www.enka.com/investor-relations/annual-reports/ About ENKA Culture and Art: http://www.enkasanat.org/hakkimizda/ ENKA SUSTAINABILITY REPORT 2017 DEVELOPING COMMUNITIES

ENKA Schools

Adapazarı ENKA Schools, was established Istanbul ENKA Schools was founded in immediately after the 1999 Marmara earth- 1996. It has a student-centred ethos and quake to provide education and shelter for an innovative approach to teaching and children who had been victims of the dis- learning. Its primary, secondary and high aster. It continues its educational activities school sections are currently providing edu- today. cation to a total of 1,237 pupils and students. In addition to its modern, functional class- 98 Adapazarı ENKA Schools has 715 students rooms, the school has three fully-equipped 99 and a staff of 111 permanent teachers and science laboratories, an auditorium, three five part-time teachers. Its aim is to provide libraries with a total of 40,000 volumes, a equality of opportunity in education and to computer laboratory, two design studios bring up creative individuals who use their and a multi-media room. critical thinking and communication skills in all disciplines, ask questions, express themselves in different languages, respect differ- In the curriculum, as much importance is Kocaeli ENKA Schools, is divided into the ence and are internationally aware. attached to clubs, community service, af- ENKA Technical Schools and the ENKA ter-school activities and schools teams as Science and Technology High School. to academic studies. These activities are intended to enable the students to develop The ENKA Vocational and Technical their sense of responsibility, curiosity and Anatolian High School is the first and self-esteem as well as to acquire leadership only school with the status of an Anatolian and communication skills. Technical High School in which all students are educated with scholarships. It started up In order to achieve these aims, the school in temporary accommodation in 2008 and has 103 clubs and 75 after-school activities. moved to its permanent campus in 2010. For example, there are International Duke of The school currently has 74 teachers and Edinburgh Awards, Round Square, Young 463 students in the fields of industrial au- Guru Academy, Model United Nations, tomation, machine technologies and chem- European Youth Parliament, ENKA Youth istry technologies. Forum, International Chain of Awareness, School Magazine (Oceanus), Lego Robotics, The ENKA Technical Schools aim to provide Cookery, English Theatre, Film Production, education in the professions required by the Dance, Yoga, Ceramics, Swimming and market using state-of-the-art machinery Istanbul Exploration clubs. Through these and equipment and up-to-date methods, clubs and activities, ENKA’s students repre- to meet both the cultural and the social sent ENKA Schools in Turkey and abroad. needs of their students and induce in them ENKA SUSTAINABILITY REPORT 2017 DEVELOPING COMMUNITIES

a sense of responsibility, professional ethics In addition to the Science High School cur- and moral values and sensitivity, to bring up riculum, students in grades 10 and above are I am proud that ENKA has launched the ENKA Sustainable Campus Programme. individuals capable of meeting the needs able to take part in additional educational of the industrial sectors and of institutions activities in line with their goals and prefer- Everything begins with education… I believe that organising the educational envi- of vocational and technical education, and ences. Genetics classes are organised in the ronment in line with the principles of sustainability will ensure that the generations to follow are conscious of this issue and act according to provide courses to personnel working in genetics laboratory for students wishing to to these principles. industry, young people without professions go on to study medicine, while workshops and graduates of general high schools so as are held in mechatronics and computer I am sure that our students will now take a different view to contribute to Turkish industry and to the programming languages for students inter- of consumer goods, their waste and the energy which solution of a social problem. ested in studying engineering. they use in their everyday lives, that they will put the environment-friendly habits which they are acquiring into The ENKA Science and Technology High To support the practical education of their practice wherever they live, and that they will make School is located in the same building as the students, both of the schools in Kocaeli have sure that sustainability programmes are implemented ENKA Vocational and Technical Anatolian physics, chemistry and biology laboratories in the institutions they will be part of in future, whether High School in the Specialised Organised equipped with the latest technology. There as workers or as administrators. This movement that Industrial Zone for Machinery in the prov- is also a LEGO robot workshop, a model has begun in an educational environment is a seed. ince of Kocaeli and houses 250 students. plane/drone workshop, a science centre, 100 The seeds will grow and produce new seeds in a world All of the students being educated at the a visual arts workshop and an orchestra 101 that is never consumed. school are studying on full and uncondi- practice room. The school has signed a pro- tional grants with the support of the ENKA tocol of cooperation with Gebze Technical Talin Bayaç, ENKA Schools - Istanbul, Technology and Design Teacher Foundation. University with a view to developing these ENKA SUSTAINABILITY REPORT 2017 DEVELOPING COMMUNITIES

Each of the ENKA Schools have developed its own strategy and identified its own sub-targets, taking into account of the sustainability priorities within the school and its local environment, in such a way as to serve the goals of the ENKA Sustainable Campus Programme, and has begun its activities under the leadership of the students.

resources further. As a result, the students Sustainability Committee has been estab- are able to benefit not only from the univer- lished for Istanbul ENKA Schools, Adapazarı sity’s physical resources, such as its labora- ENKA Schools and ENKA Technical Schools tories and social facilities, but also from the Kocaeli. Sub-committees have also been support of its academic staff for education set up within each of the three schools, and advice. In addition, technical and scien- with the committee members made up of tific projects are also being carried out in volunteers drawn from among the mem- I find the ENKA Sustainable conjunction with the university. bers of the Students Association, the Clubs, Campus Programme necessary Administrative Affairs and the Parent- and meaningful for creating ENKA Schools Sustainable Campus Teacher Association. Each of the ENKA awareness in the lives of Schools has developed its own strategy the students. In particular Programme and identified its own sub-targets, taking the twelfth goal of the Sustainable Development In September 2017, the Sustainable Campus account of the sustainability priorities within Goals of UN calls on people to Programme was inaugurated at the ENKA the school and its local environment, in such consume less and to consume re- Schools with a view for supporting the de- a way as to serve the goals of the ENKA sponsibly. While it hasn’t taken long for velopment of responsible individuals and Sustainable Campus Programme, and has the abilities of our students to internalise this to citizens of the World, for reducing environ- begun its activities under the leadership of 102 103 become apparent in our lives on campus, in the long term mental impact, and for contributing to social the students. it will emerge as something that affects their families and development. Under this programme, a joint their lives. I find it valuable that the programme is not just a topic for a couple of lessons, but something that affects all our lives at school, because I am sure this will have positive results.

It makes me hopeful to see that the concept of sustainability is no longer just a term our students sometimes I think the ENKA Schools Sustainable Campus Programme is useful use but a goal that they are trying to achieve in their because it has given us all hope for a healthy future. As somebody daily lives. I think we’ve got a good momentum going who is closely involved with technology due to my profession, and with the various ideas they come up with for projects, who tries to follow developments continuously, I have noticed a the way they have started to put only as much food as change in the way our students perceive technology products. they can eat on their plates in the canteen, and the way they remind each other of the hidden water used to produce note- The awareness of the students and employees is growing. I have books when they see people starting a new page before the noticed that the students have quickly become much more last one is finished. It’s also important for us teachers to act as aware about not leaving electronic devices switched on, the use role models and to share with our students the precautions we of disposable products and the way we should handle electronic have taken and the changes we have made in our own lives for waste. This gives all of us grounds for hope. the sake of responsible consumption. I regard the ENKA Sustainable Campus Programme as an ex- Our students have a high level of awareness and are not afraid tremely important programme, especially from the point of view to take responsibility. Now, starting from their own lives, they of preventing high carbon emissions, making conscious use are becoming individuals who set off changes and transfor- of motor vehicles and electronic devices, avoiding prod- mations in their immediate environments. Together with the ucts that can only be used once, staying away from people they interact with, they will make waves that influence processed foods as far as possible and increasing Turkey and the World. environmental awareness.

Aylin Öz Kasbulat, ENKA Schools - Adapazarı, English Umut Becan, ENKA Technical Schools- Teacher Kocaeli, Information Processing Officer ENKA SUSTAINABILITY REPORT 2017 CARING FOR EMPLOYEES

104 105 CARING FOR EMPLOYEES ENKA SUSTAINABILITY REPORT 2017 CARING FOR EMPLOYEES

Employee Demography

Number of Employees According to Contract Type with Gender Breakdown

Women Men Permanent 855 4,623 Temporary 731 12,304 Blue Collar White Collar Women Men Women Men Number of 593 14,183 1,033 2,704 Employees 106 107 Percentage 3% 77% 5% 15%

Blue Collar White Collar Age Distribution Number Percentage Number Percentage <30 4,713 25.5% 1,057 5.7% 30-50 8,162 44.1% 2,118 11. 4% >50 1,955 10.6% 508 2.7% Total 14,830 80.2% 3,683 19.8%

Blue Collar White Collar Number Percentage Number Percentage Number of Employees with 60 0.25% 24 0.10% Disabilites ENKA SUSTAINABILITY REPORT 2017 CARING FOR EMPLOYEES

Number of Employees According to Contract Type with Country Breakdown Number of Employees in Senior Gender Percentage Management Women 34 16% Permanent Temporary Men 177 84% Turkey 3,516 0 Total 211 100% Russian Federation 1,228 2,904 China 380 0 Afghanistan 73 582 Number of Employees in Senior Age Distribution Percentage Georgia 332 1,643 Management India 7 10 <30 8 4% Netherlands 1 0 30-50 152 72% Iraq 549 1,067 >50 51 24% Kazakhstan 276 2,768 Total 211 100% Kosovo 388 1, 611 Northern Iraq 6 10 Mexico 1 0 Mauritania 2 16 Paraguay 28 121 108 109 Romania 2 0 Sri Lanka 44 310 Saudi Arabia 31 26 Turkmenistan 37 544

Number of Employees in ENKA İnşaat According to Employee Category

Category Number of Employees Percentage Number of Full Time and Part Time Employees with Gender Breakdown Turkish Employees 2,036 14.3% Local Employees 5,468 38.4% Women Men Other Employees 6,322 44.4% Subcontractor Full Time 1,581 16,905 413 2.9% Employees Part Time 14 13 TOTAL 14,239 100% * Values have been calculated using data that is collected as of December 31, 2017. *Subcontractors are only employed in abroad activities within ENKA. Tasks of subcontractor employees differ according to context of the project, they include but are not limited to: mobilisation, reinforced concrete applications, basic remediation works, industrial welding operations, NDT operations, security, engineering and design works and comissioning and start-up activities. ENKA SUSTAINABILITY REPORT 2017 CARING FOR EMPLOYEES

ENKA respects human rights and treats diversity as a source Employee Rights and Employee Satisfaction of richness and turns it to advantage. This is a corporate culture which extends to all levels of the organisation.

ENKA is a large family made up of a total attitude of the company to its employees. Rights Provided to Employees ENKA İnşaat prepares suitable menus for of 23,733 employees from 49 nationalities As stated in the ENKA Code of Conduct, vegetarians and for employees needing in 18 different countries. ENKA regards its employment, promotion and all similar deci- All ENKA employees have the pension special diets both at its project sites and at employees as the most important of all the sions concerning human resources are taken rights and rights to maternity/paternity its Headquarters in Istanbul. In the projects, assets that play a role in the success and regardless of race, national origin, religion, leave specified in the laws. The other fringe special kitchens are set up and separate sustainability of its companies. language, colour, age, sex, sexual tendency, benefits provided to employees vary from menus are prepared by Indian cooks to ac- disability or any other discriminatory crite- company to company. For example, some commodate the preferences of employees 110 ENKA respects human rights and treats 111 rion forbidden by current laws. ENKA group companies provide their em- of Indian origin. diversity as a source of richness and turns ployees with bonuses or with support for it to advantage. This is a corporate culture The Human Resources Management Policy, Throughout the Çimtaş Group, collective private health insurance or private pension which extends to all levels of the organisa- which has been developed with the aim of contracts are signed with labour unions, tion. The ENKA Code of Conduct is the es- achieving ENKA’s mission, vision and values, fund contributions. and unionised workers are provided with sential document that guides both the rela- is founded on the following elements: All ENKA employees have the right to a 50% the pay and other benefits envisaged in the tions of employees with one another and the discount at ENKA Sports, which is one of contracts signed with the unions that represent them. Accordingly, the personnel in Turkey’s leading sports clubs. In addition, all 1. To further the strategic goals and interests of the Company, the coverage of the unions are paid monthly ENKA employees have the right to a 20% bonuses all year round adding up to a total discount for events organised by ENKA 2. To be sensitive to the needs of employees and all stakeholders , of four salaries per year, in addition to Culture & Arts, which plays host to a variety their gross salaries, and a social assistance of well-respected artistic performances. package is provided. Performance-based 3. To maintain ENKA’s reputation as a desirable employer, ENKA İnşaat provides all of the employees bonus and promotion schemes are avail- working on its projects in various parts of able for employees not within the coverage 4. To establish a workplace culture based on trust and respect, in which all employees feel the world with free insurance against emer- of the unions. valued and are able to make their best efforts to fulfil our mission successfully, gencies, air ambulance services, and health Non-unionised workers at Çimtaş benefit services in clinics set up at the project sites. from private health insurance as well as 5. To employ the person most qualified for the position, and to evaluate all applications from Depending on the conditions in the coun- being covered by the Social Security Board qualified candidates equally, regardless of race, language, religion, gender difference or tries in which ENKA operates and in the site (SGK). If they so wish, their dependents can physical disability, locations, a range of other social spaces also be included in their private health insur- and services are provided to enable em- ance scheme. Besides private health insur- 6. To give top priority to ENKA employees when filling vacant positions in the company, and ployees to work in a comfortable, peaceful ance, general personal accident insurance is to turn to external resources if there are still outstanding needs after the internal candidates and pleasant environment. These include provided for all employees, whether or not have been assessed, open-air and covered sports areas, game they are unionised. Various other practices console areas, spaces and tables for playing are in effect with a view to raising the quality 7. To know and abide by the laws and directives relevant to each task performed, various games, and the provision of wireless of the employees’ lives and increasing their Internet in all working and living spaces as productivity. These include birth allowances, well as satellite channel services in accom- provisions distributed at religious holidays 8. To provide all employees with opportunities for training and career planning so that they can modation rooms. and support for school stationery needs. understand their duties clearly, develop their skills and improve their performances. ENKAENKA SÜRDÜRÜLEBİLİRLİK SUSTAINABILITY RAPORUREPORT 2017 CARING FOR EMPLOYEES

Results of the survey conducted by an independent ENKA Sailing Club research company indicated that the employee loyalty With its experienced coaches and the amateur was at 88% in ENKA İnşaat and 90% in ENKA Group as sailors they have trained, ENKA Sailing has one of the strongest sailing teams in the sailing a whole. community. Every year, sailing programmes are organised especially for employees with and without sailing experience, at basic and advanced levels. Employees who succeed in the training programmes have the opportunity to take part in I have been working in the ENKA Corporate Quality Department since December the trophy race programmes and join the ENKA 2015. Sailing Team.

The most important difference between ENKA and other companies in this country is the In 2017, ENKA Sailing team has finished first both in priority which it attaches to its employees as its most important stakeholder. ENKA is aware the Istanbul Sailing Club (IYK) and the Bahçeşehir of the challenging conditions that are natural parts of the sectors in which University (BAU) yacht trophy programmes, it operates, like construction and energy. Its business strategy therefore consisting of 9 and 4 races respectively, as well 112 113 gives prominence to employee satisfaction. The organisation of ENKA as earning two championships in the IRC-0 Academy, which was founded with a view to supporting the personal classification, which is considered the highest and professional development of employees, has enabled ENKA to class. An overall second place finish was achieved invest in its employees more comprehensively and effectively. at the TAYK / BMW Bosphorus Sailing Fest, which ENKA maintains high business and quality standards in every sector was held on 20 May 2017. The team was crowned in which it operates. However, its business strategy is not based on another first place prize at the TAYK / Eker this goal alone. The goals of valuing its employees, contributing to Olympos Regatta Cup held on August 11-13. local communities in the locations where it works, and reducing its environmental impacts have also become a part of its ENKA Sailing Team will follow the Istanbul Sailing business strategy. All of these aims constitute ENKA’s culture Club and Bahçeşehir University trophy programs of doing business. In 2017, it gathered them all together and in 2018. published the ENKA Sustainability Strategy.

I am happy and proud to be a member of a large family like ENKA, which respects its employees and its environment and generates wealth for a better future.

İnci Bozokluoğlu, Corporate Quality Lead Engineer, ENKA Headquarters

Employee Satisfaction loyalty was put at 88% in ENKA İnşaat and 90% in ENKA Group as a whole. The compa- In 2017, an Employee Satisfaction and ny’s goals for 2018 include the implementa- Loyalty Survey was conducted throughout tion of a number of actions which have been ENKA for the first time. The survey was con- found necessary to bring about improve- ducted by an independent research com- ments in the light of the survey results, and pany. The employees were asked to give the continuation of the dialogue with em- their views on numerous aspects of employees concerning such actions. ployee satisfaction and loyalty. Employee ENKA SUSTAINABILITY REPORT 2017 CARING FOR EMPLOYEES

Employee Training And Development

ENKA believes in the need to invest in its em- Academy since it was established, involving ployees, all of whom possess the knowledge more than 1,300 participants. and qualities needed in their own fields of work, if it is to perpetuate its existence and become Aside from ENKA Academy, the training de- even stronger. By creating a culture which pro- partments established under ENKA’s pro- motes the achievement both of its own organ- jects, which operate in close contact with isational goals and of the individual goals of its the Istanbul Headquarters, have provided a employees, the company aims to increase mo- total of more than 7.5 million person-hours of tivation and cooperation among its produc- training to date. This training has contributed tive workforce and at to the development the same time pro- of local communities vide better working in the countries in environments. which ENKA has un- 114 dertaken contracts. 115 In this context, ENKA founded ENKA Likewise, ENKA’s Academy in 2015 to subsidiaries provide provide ENKA per- a series of incentives sonnel with oppor- to support employee 7.5+ development in line tunities to learn and develop their com- with the company’s petencies, and to MILLION visions and goals. support the achieve- PERSON-HOURS One of the priorities ment of the com- of ENKA Systems, Amount of training given as a technology firm, pany’s goals. ENKA up to this day Academy is designed is to keep track of to develop the pro- technologies that are changing and de- Çimtaş: “We are at the Factory with our Families” Event fessional competencies of ENKA em- veloping by the day, One of the social activities which the Çimtaş Group conducts with its employees is called ployees, their aware- and to design and “We are at the Factory with our Families”. This is a traditional annual event during which ness of processes, their technical knowledge, update projects in both the employees and their families are given a technical tour of the factory, and a and their leadership and management skills. It line with these new technologies. Employees painting competition on the topic of Health, Safety and Environment at Work is organ- strengthens the professional and social skills of are encouraged to take part in this process, ised for children of Çimtaş employees attending primary and middle school. The aim is to the employees through training opportunities and are provided with access to the platforms raise awareness about health, safety and environment from an early age. As always, the prepared by its own experts and by academic they need to learn about new technologies, pictures painted by the children who won the painting competition in 2017 will feature on institutions and leading training companies in methods and techniques quickly and easily. In the Çimtaş calendar for 2018. the sector. In 2017, about 200 hours of training addition, as part of its R&D activities, ENKA and about 2,250 person-hours of social skills Systems supports employees studying for (competencies) training were given. Over 700 higher degrees and doctorates. Employees hours of training has been provided by ENKA who complete their higher degrees and doctorates are rewarded at predetermined rates. ENKA SUSTAINABILITY REPORT 2017 CARING FOR EMPLOYEES

Employee Training Training of Employees in the Field provided for the benefit of the employees of subcontractor and supplier firms working The total number of hours of training and the hours of training per person provided to em- ENKA plans and implements programmes, on ENKA worksites. In the reporting period, ployees at ENKA Headquarters in 2017 are shown in the tables below. ENKA provides equal which develop both the professional skills and approximately 12,225 person-hours of skills training opportunities to all its employees to support the development of their professional and the social skills of its personnel employed on development and pre-manufacture quality social skills. the projects it has undertaken. In this way, it briefings and 1,025,123 person-hours of HSE seeks to meet the needs and expectations of training were provided to a total of 19,459 per- the projects in question and develop the com- sonnel working on ENKA İnşaat projects. petencies they require. For the employees, this represents a valuable opportunity to acquire Employee Training at Çimtaş the ability to work in different areas and to Personnel Training Hours by Category of Gender at ENKA Headquarters benefit from a wider variety of job opportuni- In line with its goals for continuous develop- ties in the future. ment, Çimtaş identifies the training and development activities needed to improve the Women Men In all ENKA’s projects, project-specific training existing competencies and qualities of its plans are drawn up and implemented with the employees, prepare them for the future and Total Hours of Training 1,450 2,707 aim of ensuring that members of the field team ensure their personal, administrative and pro- 116 Training Hours Per Employee 9.06 9.08 at all levels are able to receive the training they fessional development, then implements these 117 need. The training plans consist of four stages: activities and evaluates their effectiveness. An orientation, skills development, pre-manufac- average of 50 hours of training per person was ture quality briefings, and health, safety and provided for white-collar staff and 53 hours environment (HSE) training. for blue-collar staff across all the Çimtaş group companies in 2017. In addition to all ENKA personnel working in the field, these training activities are also Personnel Training Hours by Category of Employee in the Çimtaş Group Hours of Training Per Employee at ENKA Headquarters by Category of Employee White Collar Blue Collar Hours of Average Hours Hours of Average Hours Training of Training Per Training of Training 9.6 9.2 9.2 9.1 9.2 (Person-hours) Person (Person-hours) Per Person 8.8 7.8 8.0 7.3 Çimtaş Steel 6,474.8 35 16,959.2 48

Cimtas Pipe 18,444.7 50 34,595.6 48

Cimtas Ningbo 6,830.5 60 14,451.5 52

Çimtaş Precision 9,599.4 93 16,693 79

Deputy Executive Senior Section Coordinator Manager Deputy Administrator Expert Machining General Board Expert Chief Manager Director Member Çimtaş 31.9 1 2,332.1 65 Shipyards Çimtaş Group 41,381.3 50 85,031.4 53 TOTAL ENKA SUSTAINABILITY REPORT 2017 CARING FOR EMPLOYEES

ENKA Business Coaching

ENKA is planning to train and prepare members of its senior management who are willing to share their knowledge and skills with younger employees, and who are well versed in the culture of the company, as “ENKA coaches”. After receiving this training, it is envisaged that the ENKA Coaches will provide mentoring to those staff members who are allocated to them. In this way, they will contribute to the development of the company workforce, which is its most important asset.

ENKA regards those of its employees who are nearing the ends of their working lives as valuable members of the ENKA Family. In order to facilitate the management of career endings due to retirement, and to make it possible to pass on long years of corporate experience to new generations, ENKA plans to include these employees in its internal coaching programme, and is preparing a training programme for this purpose.

Health and Safety at Work

118 119 Occupational Health and Safety developed in conformity with the proce- Management dures, and an effective audit and inspection system. Based on the results of audits The most important target of all for ENKA and inspections, the entire management and its subsidiaries is that all employees system is reviewed periodically with im- should be able to get back to their homes provements made constantly. safe, sound and healthy. Health and Safety ENKA believes that with the right outlook, is addressed with equal seriousness wher- planning and effective practices, it can ever the name of ENKA is visible. For this prevent all accidents. Its commitment to purpose, everybody within the boundaries “Zero Accident” is a strong and resolute ENKA Business Coaching Cycle of the worksite, including subcontractors, policy that begins with the senior manage- is considered an ENKA employee and is Communicate ment and is declared to employees at all subject to the same standards. levels together with other stakeholders.

ENKA İnşaat (including ENKA By nature, construction activities are Headquarters, all ENKA İnşaat projects globally considered to be high risk jobs. Examine Identify and ENKA subsidiaries ENKA Teknik and As ENKA’s main line of business is con- Results Aims TİTAŞ), ENKA Power, Cimtas Pipe, Çimtaş struction, all its occupational health and Steel, Çimtaş Shipyards and Çimtaş safety measures and precautions are im- ENKA Coach Precision Machining all possess OHSAS plemented with extreme cautious and 18001 certificates and have established sensitivity. The occupational health and and operate their occupational health and safety management system at ENKA safety management systems accordingly. İnşaat adopts the pro-active approach as These management systems rest on the its primary approach, and all works begin Follow foundations of a strong management with the identification, assessment and Prepare Up commitment, occupational health and management of occupational health and safety policies and procedures drawn up safety risks. The risk assessments are car- in line with this commitment, training plans ried out in line with the Risk Assessment ENKA SUSTAINABILITY REPORT 2017 CARING FOR EMPLOYEES

Procedure developed by the ENKA İnşaat ENKA subsidiary Çimtaş carries out training HSE (Health, Safety and Environment) activities, drills, risk assessments and job Department. General Risk Assessments are hazard analysis, operates a change manage- conducted at the start of each project, and ment system, a near-miss reporting system, specific risk assessments and Job Hazard reward and penalty schemes and a technical Analysis carried out depending on the exact safety premium policy, and conducts internal nature of the work. These steps constitute the and external inspections, periodical environ- main stages of the occupational health and ment measurements, and health checks at safety risk management process. hiring process and periodically thereafter. Occupational health and safety issues are Since 2010, ENKA İnşaat has been holding I have been working in the Health and Safety Department at Bechtel Headquarters also incorporated into the collective contracts for 17 years. Over the years, I have had the opportunity to work with ENKA HSE an HSE Workshop every year. The 2017 signed with labour unions at Çimtaş work- (Health, Safety and Environment) personnel during the many inspections, evalua- Workshop was held for the fifth time with the places where labour unions are organised. tions and joint projects and activities on which we have collaborated with ENKA. motto of “Speak Up - Stay Safe”. Participants included project HSE managers and project Cimtas Ningbo reinforces its employees’ During the period of almost 20 years that I have been in contact with ENKA, I management teams. Training was provided awareness about occupational health and have observed that it has changed very rapidly and in a positive direction. I have by internal and external trainers, and an eval- safety by holding a Safety Week every year, no doubt whatsoever that ENKA has the values and moral outlook that Bechtel 120 uation was made of the HSE performance of during which training activities, drills and looks for in a business partner. Moreover, having worked one-on-one with ENKA 121 the company in 2017. competitions are organised with the partic- personnel in different countries, I can say that they definitely abide by the high ipation of every single employee. standards that we look for in a business partner in terms of occupational health In accordance with its “Zero Accident” target, and safety, quality, integrity and the value which they place on employees and the community.

Read more… My views on ENKA’s approach to its environmental responsibilities are limited to the im- About the ENKA HSSE Policy: http://www.enka.com/sustainability/home/health-safety- environment/hsse-policy/ pressions I have obtained during the time About the Çimtaş Occupational Health and Safety Policy: http://www.cimtas.com/departments/ that I have spent with ENKA personnel at health-safety-environment/health-safety-environment-energy-policy/ meetings and in the field. However, I can tell you that ENKA attaches much greater importance to the protection of the environment than many of the business partners that Bechtel works with around the Engagement of Employees in Precision Machining have H&S committees. world. Occupational Health and Safety and These committees meet frequently to review performance in the areas of health and safety I consider working with ENKA to be very Environment Committees at work and environment and to decide on beneficial for Bechtel. In recent years, in the necessary actions that need to be taken. particular, we have been sharing ENKA and its subsidiaries establish Health, The committees consist of the employer’s our opinions and carrying out Safety and Environment (HSE) and Health & representative, H&S experts, the workplace joint programmes in the area Safety (H&S) committees which meet regu- doctor or nurse, a human resources expert, of health and safety, and it is larly in acccordance with the laws and regula- an administrative officer, employee represent- clear that the two compa- tions. ENKA İnşaat has HSE committees while atives, representatives of the labour union if nies have been extremely useful to one another. the ENKA Headquarters, ENKA Power and the any and other relevant experts depending on Çimtaş companies Cimtas Pipe and Çimtaş the agenda. Jeffrey Vincoli, Bechtel ES&H Compliance Assurance Manger ENKA SUSTAINABILITY REPORT 2017 CARING FOR EMPLOYEES

Working in Regions with High the region where the work is to begin and ob- Health and Security Risks viate any and all negative consequences which employees might encounter. Recruitment ENKA aimed to become a global company conditions are determined in line with this from the very first day it was founded. In line risk assessment. Special health programmes, In 2017, 1,025,123 person-hours out of the total such as preventive vaccinations, may also be with this goal, it has so far engaged in activ- of 53,093,499 person-hours worked at ENKA ities in 45 different countries, including com- implemented. A medical facility is set up for pleted and ongoing projects. A large propor- each project, and all the employees are closely İnşaat was devoted to HSE training. tion of these projects are in the Community of monitored under the supervision of Turkish Independent States, the Middle East, Europe, and/or local doctors. Africa and Turkey. Over time, ENKA has come Meanwhile, the security risks in the regions to conduct more and more of its operations where ENKA operates are analysed by the in parts of the world where it is relatively dif- Corporate Security Department. Special total of 53,093,499 person-hours worked at ficult to conduct business in terms of health. HSE Training safety plans are drawn up for each project, ENKA İnşaat was devoted to HSE training. This reflects the weighting of ENKA’s projects and project security departments are estab- Training activities are vitally important for Within this figure, 338,774 person-hours were towards the energy sector and its involvement lished. In places where the results of the risk communicating the company’s HSE policies, spent on technical and systematical training. in the “Embassy” projects, which are known 122 analyses demonstrate high risk, agreements and the procedures which it has put in place in The number of person-hours spent on HSE 123 as special projects. In this context, detailed are also made with private security firms. accordance with these policies. For each pro- training every year is equivalent to the number analyses are conducted before starting on These organisations operate under the Project ject, ENKA prepares detailed training plans of person-hours that would be spent on a me- the projects so as to identify the health risks in Security Manager. determining the specific training necessary for dium-sized construction project. the employees, how they are to be conducted and with what frequency. A fully successful The Çimtaş Group companies fall into the training strategy is known to require a regular hazardous workplace category under the rel- training programme, competent trainers, and evant legislation. Employees of Cimtas Pipe suitable learning spaces. and Çimtaş Precision Machining are provided with H&S refresher training every two years. All ENKA İnşaat projects have training units Moreover, each employee is given at least 12 attached to the project HSE departments. hours of on-the-job H&S training. 15-minutes Besides the training coordinators, local trainers talks on safety and the environment at work are employed in the training departments to are held three days a week in these two enter- deliver training to the local employees in their prises. At Cimtas Ningbo, a 15-minutes H&S own languages. information session is held for employees one day a week. In addition, on-the-spot training HSE Training at ENKA İnşaat is made up of is given to the relevant departments about three main components: Orientation and the risk situations that are identified through On-the-Job Training, Technical Training and weekly and monthly H&S inspections. Systematical Training. Under the heading of Systematical Trainings; training is provided The table below provides the distribution of about the process of the management sys- 1,100,415 person-hours of HSE training in tems in use, headed by ENKA HSE System, 2017, given at ENKA İnşaat, ENKA Power, Permit to Work System and OHSAS and ISO Çimtaş, ENKA Real Estate (ENKA TC, CCI, Management Systems. Technical training is MKH), ENKA Pazarlama, ENKA Foundation given on topics like working at height, working and ENKA Schools. in confined spaces and safe use of grinders, with the aim of ensuring that the activities in question are carried out safely.

In 2017, 1,025,123 person-hours out of the ENKA SUSTAINABILITY REPORT 2017 CARING FOR EMPLOYEES

ENKA HSE Training Hours

White Collar Blue Collar Hours of Average Hours Hours of Average Hours Training of Training Per Training of Training Per (Person-hours) Person (Person-hours) Person

ENKA İnşaat 143,517 53.1 881,606 52.6

Çimtaş Group 13,4 47.5 16.5 39,933 29.6 I graduated from Adapazarı ENKA High School in 2010. While I was stud- ENKA Power 2,174.5 17.5 4,426.1 21.4 ying at university, I did internships as an occupational health and safety and environment engineer on the Bechtel-ENKA Kosovo Motorway ENKA Real Estate 4,427 10.1 8,880 18.4 Project in 2013 and at Çimtaş Shipyards in 2014. Since August 2017, I have been working in the HSE Department at ENKA Headquarters. ENKA Foundation 306.6 3.7 58.4 3.7 In line with our “Zero Accident Target”, we at ENKA believe that all acci- ENKA Pazarlama 159.9 1.2 73.8 1.2 dents can be prevented with the right outlook, the right planning and effective practices. We carry out our activities on this basis. Analysis of the ENKA Schools 922 2 483 6.2 accidents that occurred in 2017 shows that our accident frequency ratios reached their lowest levels, coming in even lower than our HSE targets.

ENKA Group TOTAL 164,954.5 34.7 935,460.3 49.4 In my opinion, a well-structured training system supported by ENKA HSE procedures is the most effective way of passing on ENKA’s HSE culture and awareness to its employees. To this end, more than a million person-hours of training was given to our employees and our stake- 124 holders in 2017. 125

One of the most important features that distinguish ENKA’s HSE management from those of other organisations is the close and detailed monitoring of the Corporate HSE performance of the projects by the cen- tral Corporate HSE Department. The HSE performances are monitored continuously and regularly using predetermined proactive and reactive parameters. Internal and external inspections are carried out to ensure conformity with the system, and the findings are submitted to the project officials and to the upper management.

I will always be proud and honoured to be part of an organisation that is respectful of nature, cares for its employees and furthers the development of the places where it is active, with its projects in Turkey and abroad.

Seçil Parlar, ENKA Corporate Health, Safety & Environment Engineer ENKA SUSTAINABILITY REPORT 2017 CARING FOR EMPLOYEES

ENKA Lost Day and Work Incident Performance

Total Person-Hours in 2017 60,241,963 Total Person-Hours in 2017 639,594 60,881,557

Number Number TOTAL Class of Class of (COMPANY TOTAL TOTAL Incident /Indicator Incident /Indicator + Women Men Women Men SUBCONTRACTOR)

Number of Fatalities 0 1 1 Number of Fatalities 0 0 0 1

Number of Lost Time Number of Lost 0 13 13 0 5 5 18 Incident Time Incident

Lost Time Incident Lost Time Incident 0.00 0.04 0.04 0.00 1.56 1.56 0.06 Frequency Rate Frequency Rate

Number of Lost Number of Lost Days 0 348 348 0 70 70 418 Days 126 127 Lost Time Incident Lost Time Incident 0 1.16 1.16 0 21.89 21.89 1.37 Severity Rate Severity Rate Number of Number of Restricted Work 0 23 23 Restricted Work 0 0 0 23 Cases Cases Number of Medical Subcontractors Number of Medical

Company Employees 1 72 73 0 2 2 75 Treatments Treatments

Number of First Aid Number of First Aid 1 287 288 0 2 2 290 Cases Cases Number of Number of Recordable 1 109 110 Recordable 0 7 7 117 Incidents Incidents Recordable Incident Recordable Incident 0.003 0.36 0.37 0 2.19 2.19 3.84 Frequency Rate Frequency Rate

Absentee Rate - Absentee Rate - -

Work Related Work Related Illnesses Frequency - Illnesses Frequency - - Rate Rate

In calculating the frequency ratios for recordable incidents, incidents requiring first aid only have discounted and excluded, whereas incidents requiring medical treatment, restricted work cases, lost time incident and fatality. The ratios of lost time incidents have been calculated by calendar days. The numbers of lost days have been calculated starting with the day following the incident. ENKA SUSTAINABILITY REPORT 2017 REDUCING ENVIRONMENTAL IMPACT

128 129 REDUCING ENVIRONMENTAL IMPACT ENKA SUSTAINABILITY REPORT 2017 REDUCING ENVIRONMENTAL IMPACT

ENKA aims to establish environmental management systems that go beyond the Environmental Management standards of the country, comply with ENKA’s targets and can set an example for others.

“Reducing Environmental Impact” is one of infrastructures and environmental legislation the four principal foundations of ENKA’s sus- represents both a goal and a risk for ENKA. tainability strategy. ENKA has clearly stated When working in countries where standards its commitment to the preservation of the en- are inferior to ENKA’s own environmental to accomplish them. In 2017, concrete steps included in the scope of these efforts. vironment and to reducing the environmental requirements, ENKA aims to establish envi- were taken in order to measure ENKA’s basic Starting in 2018, this data will make it pos- impacts of its activities in its Health, Safety, ronmental management systems that go be- environmental impacts, including those of sible to set collective, long-term targets and Social and Environment (HSSE) Policy. yond the standards of the country, comply its subsidiaries and projects, and report on ENKA will decide on the actions to be taken ENKA and its subsidiaries are fulfilling their with ENKA’s targets and can set an example them centrally and more systematically. A to ensure constant improvement. commitments in this respect in accordance for others. By assuring this, the activities in broad range of impacts were included in with ISO 14001 Environmental Management question are constantly inspected by the this initiative paying due attention to ENKA’s 130 Standard. ENKA and the group companies Health, Safety and Environment (HSE) de- main fields of activity and the activities which 131 have established their own environmental partment at Headquarters and at the project are observed to have the greatest environ- management systems and opened them up level, and any cases of non-conformity are mental impacts. Both carbon footprint and to audit by independent institutions in ac- eliminated as swiftly as possible. water consumption measurements were cordance with the ISO 14001 Environmental conducted for the companies and projects Management Standard. ENKA systemati- The main environmental impacts stemming cally identifies all environmental impacts that from construction activities throughout the might arise during the course of its activi- world can be listed as follows: Expenditure of ties through environmental impact assess- natural resources, impact on soil, impact on ments, and takes precautions accordingly. water resources, emissions, the greenhouse ENKA also expects its subcontractors and effect, erosion, impact on flora and fauna, and suppliers to show the same sensitivity, pro- impact on endangered species. ENKA İnşaat viding them with training and carrying out Environmental Management System makes inspections to this end. The ENKA Supplier it obligatory to prioritise the elimination of Code of Conduct and the procedures laid these impacts at source. Where this is not down for the selection, evaluation and su- possible, policies envisaging replenishment, pervision of suppliers clearly indicate the en- isolation and/or appropriate engineering vironmental behaviour and performance that precautions must be adopted, depending ENKA requires from its suppliers. More de- on the circumstances. ENKA is engaged in tailed information about this matter can be a series of activities to measure, prevent and found in the section of this report concerning minimise the impacts referred above. The “Responsible Supply Chains”. training provided to employees and relevant stakeholders constitutes one aspect of these At all the sites where they operate, ENKA activities. In 2017, ENKA İnşaat provided a Read more… and its subsidiaries establish departments total of 9,684 person-hours of environmental responsible for the management of environ- training. for ENKA HSSE Policy: http://www.enka.com/sustainability/home/health-safety-environment/ hsse-policy/ mental impact; employing environmental ENKA and its subsidiaries determine en- for Çimtaş Energy, Environment, OHS Policies and Zero Incident Commitment: http://www. engineers and experts. Environmental cimtas.com/en/departments/health-safety-environment/health-safety-environment-energy- data is collected and evaluated regularly. vironmental targets annually, monitor the policy/ Achieving the desired international stand- extent to which these targets are being for ENKA Power HSE Management System: http://www.enkapower.com/cgs/ ards in countries with differing environmental achieved, and take any actions necessary ENKA SUSTAINABILITY REPORT 2017 REDUCING ENVIRONMENTAL IMPACT

Water Management

ENKA is aware that water is the most impor- standard, it is subjected to appropriate puri- compatible with ENKA procedures and the ENKA’s other subsidiaries are also working tant natural resource for life. For this reason, fication processes before it is used. local legislation. If there is no infrastructure to protect water resources, depending on it manages its use of water responsibly, effi- system, treatment systems are established their fields of activity. For example, ENKA ciently and effectively. In ENKA projects, water is consumed mostly in order to be able to discharge water of an TC makes use of grease traps to collect the in irrigation to prevent dust emissions, in the appropriate quality. Accredited laborato- waste oils of tenants providing services in the ENKA is carrying out projects in regions that production of materials such as concrete and ries test samples of water obtained and dis- restaurant sections of its buildings, and has vary widely in their geographical character- asphalt at the worksites, and for purposes of charged regularly. these cleansed and maintained regularly by 132 istics, and access to water in these regions domestic usage. Before starting work on any authorised firms. Cimtas Pipe has started to 133 differ accordingly. In projects carried out in construction project, ENKA conducts a de- Depending on the type of activity that is make use of a siphonic rainwater collection Africa and the Middle East, where access tailed Environmental Impact Assessment. Its being carried out, treated water can be recy- system in order to reduce its water consump- to clean water is particularly restricted, the first preference is to use the water resources cled for use in the irrigation to prevent dust tion. Çimtaş Precision Machining is aiming to need arises for special solutions. In some that are found to be sufficient in quality emissions, after concrete casting process, or put its rainwater collection system into op- places, the solution is to transport clean and quantity. If the water is withdrawn from re-used to irrigate green areas. In this way, eration in 2018, enabling it to meet 100% of water to the sites of work and accommo- natural resources, the capacity and quality the total amount of water used can be re- its needs for water for siphons and garden dation; in others, drinking water is obtained of the source are monitored regularly, and duced. In cases where the nature of a project watering using rainwater. through advanced purification techniques in the event of any change, discussions are requires that a water course such as a river, such as reverse osmosis. Since transporting held with the relevant authorities to find a streams or irrigation canal on the worksite Water efficiency and conservation training is water creates additional risks and increases solution. The proper infrastructure systems needs to be crossed, pipes of appropriate di- regularly held for employees throughout the environmental impacts, clean water wells are and highly efficient equipment are used in mensions are positioned at the crossing point ENKA group. opened at appropriate points after obtaining order to reduce water losses to a minimum. If and the necessary filling work is carried out the necessary permits from the local author- an infrastructure system exists, waste water in order to ensure that the water continues Amount of Water Withdrawal by ities. When water is not at the desired quality is discharged into the system in a manner to flow and to preserve the bed of the water Source course and the quality of the water. ENKA began work on measuring its water Due to its field of activity, ENKA Power, one footprint systematically in 2017. The table of ENKA’s subsidiaries, requires considerable next page lists the subsidiaries and sites that quantities of water for use in the production of were included in this study in its first year. energy. At the Izmir plant, the need for water is particularly high as a wet cooling system The total amount of main water used in 2017 is used. The water is drawn in a controlled was 903,238m3, the amount obtained from manner, taking all necessary precautions to surface waters such as rivers and lakes was protect the Gulf of Izmir, and in line with a phi- 27,853,364m 3, and the amount of ground- losophy of not causing any damage to wildlife. water drawn was 745,957m3. The total water At the Adapazarı plant, ground water is used consumption of the ENKA group compa- in accordance with the permission granted. nies and projects included in the study was Care is taken to draw off less than the allo- 29,502,559m3, and their total discharges of cated amount, once again with the philosophy waste water added up to 21,198,890m3. of protecting the basin. All drawings of water are metered and the amounts are recorded. ENKA SUSTAINABILITY REPORT 2017 REDUCING ENVIRONMENTAL IMPACT

Water Withdrawal by Source

Surface Waters Total Amount Surface Waters Total Amount Municipal Municipal (Rivers, Groundwater of Discharged Point of (Rivers, Groundwater of Discharged Point of Subsidiary/Plant/Project Water Subsidiary/Plant/Project Water Lakes, etc.) (m3) Waste Water Discharge Lakes, etc.) (m3) Waste Water Discharge (m3) (m3) (m3) (m3) (m3) ( m3)

Municipal Municipal Cimtas Boru İmalatları ENKA TC Limited Liability 37,605 - - 20,918 Waste Water 449,093 - - 449,093 Waste Water vTicaret Ltd. Şti. Company Treatment Plant Treatment Plant

Municipal Çimtaş Çelik İmalat Montaj - - 21,398 7,541 Sea of Marmara 59,217 - - 59,217 Waste Water ve Tesisat A.Ş. Moskva Krasnye Holmy Treatment Plant

Municipal Municipal 134 Hotel Moskva Krasnye 135 Adapazarı - - 134,264 134,264 Waste Water 49,225 - - 49,225 Waste Water Holmy Treatment Plant Treatment Plant

ENKA Municipal Municipal Power Gebze - - 268,528 268,528 Waste Water ENKA Headquarters 13,041 - - 12,771 Waste Water Plants Treatment Plant Treatment Plant

Municipal Izmir - 27,853,364 30,715 19,781,418 Sea SCPX-CSG-1 - - 128,410 61,190 Waste Water Treatment Plant

Municipal ENKA Pazarlama İhracat 12,386 - - 12,386 - - - 117, 270 57,996 Waste Water İthalat A.Ş. SCPX SCPX-CSG-2 Treatment Plant

Municipal Istanbul ENKA Schools 10,887 - - 8,710 Waste Water SCPX-Area 81 - - 45,372 45,372 Soil Treatment Plant

Municipal Municipal Kashirskaya Multi- ENKA Sports Club 39,566 - - 37,481 Waste Water 39,438 - - - Waste Water Functional Trade Center Treatment Plant Treatment Plant

Municipal City Center Investment 192,780 - - 192,780 Waste Water 3 (CCI) TOTAL (m ) 903,238 27,853,364 745,957 21,198,890 Treatment Plant ENKA SUSTAINABILITY REPORT 2017 REDUCING ENVIRONMENTAL IMPACT

Determination of Water Shortage Major outcomes of the water footprint and Water Pollution Risks studies are as follows. • Most of the facilities included in the study Within the context of the work on water foot- use groundwater. It is important to mon- print measurement and water risks assess- itor groundwater levels for the continuity ment that ENKA embarked upon in 2017, the of supply from these sources. risks of water shortage and water pollution were identified for the facilities surveyed. For • Efforts to measure and keep track of the this purpose, the coordinates of the facility water consumption of the facilities need 136 sites were compared with maps showing to be stepped up. 137 water shortages and water pollution, and those water resources that might be affected • An examination of the levels of nitrogen significantly by the drawing off of water were and phosphorus pollution in water in the identified. regions where the facilities are located points to a high risk of water pollution at The risk of water shortage for a facility in- the facilities in Turkey and Russia. In these creases with the degree of water shortage. In places, nitrification pollution is very no- places where water shortage is a major issue, ticeable. These findings signal that the challenges in obtaining water will increase level of nitrogen pollution in the ground- in the short and medium term, the groundwater will increase in the short/medium water level will decrease, and water prices term and that clean water resources will are also very likely to rise. therefore decline.

The degree of water shortage is high at the In the foreseeable future, ENKA will shape sites of all the companies and institutions in its water management actions while taking Turkey. This means that the risks of obtaining these outcomes into consideration. water for these facilities are high. In order to reduce the risk of water shortages at the facilities to a minimum, work needs to be done to reduce their blue water footprints. ENKA SUSTAINABILITY REPORT 2017 REDUCING ENVIRONMENTAL IMPACT

Levels of Water Shortage and Water Pollution in the Regions where the Facilities are Located

Company / Water Nitrogen Phosphorus Water Water Company / Water Nitrogen Phosphorus Water Water Institution / District/City Country shortage pollution pollution shortage pollution Institution / District/City Country shortage pollution pollution shortage pollution Project degree level level risk risk Project degree level level risk risk

Adapazarı Istanbul ENKA Elektrik Üretim Adapazarı Turkey High High High Istanbul Turkey High High Medium +++ +++ Schools +++ +++ Ltd. Şti.

Cimtas Boru İzmir Elektrik İmalatları veTi- Gemlik Turkey High Medium Medium Izmir Turkey High High High +++ ++ Üretim Ltd. Şti. +++ +++ caret Ltd. Şti.

City Center Moskva Krasnye Moscow Russia Medium High Medium Moscow Russia Medium High Medium Investment B.V. ++ +++ Holmy ++ +++

138 139 Çimtaş Çelik Hotel Moskva İmalat Montaj ve Moscow Russia Medium High Medium Moscow Russia Medium High Medium ++ +++ Krasnye Holmy ++ +++ Tesisat A.Ş.

Kashirskaya ENKA Istanbul Turkey High High Medium Multi-Functional Moscow Russia Medium High Medium Headquarters +++ +++ ++ +++ Trade Center

ENKA Pazarlama SCPX-Area 81 Istanbul Turkey High High Medium Meskhetian Georgia Low Low Low İhracat İthalat +++ +++ Site + + A.Ş.

ENKA TC SCPX-CSG- 1 Limited Liability Moscow Russia Medium Low Low Meskhetian Georgia Low Low Low ++ + Site + + Company

SCPX-CSG-2 ENKA Sports Istanbul Turkey High High Medium Site (main Meskhetian Georgia Low Low Low Club +++ +++ + + camp)

SCPX-CSG-2 Gebze Elektrik Gebze Turkey High High High Site (route Meskhetian Georgia Low Low Low Üretim Ltd. Şti. +++ +++ + + camp)

SCPX-CSG-2 Site (crushing Meskhetian Georgia Low Low Low + + plant)

+: Low Risk, ++: Medium Risk, +++: High Risk ENKA SUSTAINABILITY REPORT 2017 REDUCING ENVIRONMENTAL IMPACT

Energy Efficiency and Climate Change

The daily growth of the urban population, being sustainable. At the same time, climate Carbon footprint calculations have been cal- Management System, environmental engi- rising urbanisation and changes in consump- change constitutes an opportunity for the culated in the scope of ENKA Headquaters, neers and trainers are employed at ENKA tion habits, and the increasing demand for construction and real estate sectors, in which the ENKA Power Adapazarı, Gebze and İzmir Headquarters, in the subsidiaries and on the energy which they bring with them, pose ENKA is active. The design of buildings and power plants; Çimtaş Steel; Cimtas Pipe; projects. Environmental training starts from important threats to our climate and planet. the production of technologies that use less ENKA Pazarlama; ENKA Schools - Istanbul; the induction and continues throughout Realizing that climate change is a serious re- energy and are environmentally friendly form ENKA Sports Club; ENKA TC, CCI, MKH and the project, ensuring that all employees be- ality, ENKA is making efforts to fulfil its re- part of ENKA’s sustainability strategy. OMKH investments in Russia, and two of come part of the energy and climate change 140 sponsibilities for leaving future generations ENKA’s projects – namely, the Kashirskaya efforts. 141 a world that can be lived in, and to reduce In 2017, ENKA embarked on an effort to Multi-Functional Trade Center in Moscow the negative impacts of its activities on the measure its carbon and water footprints to and the CSG-1, CSG-2 and Area 81 sites of Energy Consumption environment and the climate to a minimum. make the potential impacts of its activities the SCPx Pipeline Project in Georgia. that might lead directly or indirectly to cli- The levels of energy consumption stemming Climate change is an important issue that mate change visible, and to be able to set tar- Another important aspect of ENKA’s en- from fuel consumption, electricity consump- constitutes a risk to the activities that ENKA gets for its efforts to reduce those impacts. ergy efficiency and climate change efforts tion, consumption for heating and cooling carries out around the world, in terms of them is the training it provides to its employees purposes and hot water consumption in with the intent to increase the level of aware- 2016 and 2017, measured in terajoules (TJ), ness and increase their sensitivity on energy are shared in the following table: conservation. As part of the Environmental

Annual In-House Energy Consumption 2016 2017

Fuel Consumption (TJ) 161,468 157,873 Realizing that climate change is a serious reality, Electricity Consumption (TJ) 858 881 ENKA is making efforts to fulfil its responsibilities for Consumption for Heating and Cooling Purposes (TJ) 11. 3 14.7 leaving future generations Hot WaterConsumption(TJ) 492 461 a world that can be lived in, and to reduce the negative TOTAL (TJ) 162,829 159,230 impacts of its activities on the Total energy consumption is observed to in production activities. In 2018, systematic environment and the climate have declined from 162,829 TJ in 2017 efforts will start to be made with the aim of to a minimum. to 159,230 TJ in 2017. This 2.2% decline is increasing energy efficiency further. thought to have stemmed from fluctuations ENKA SUSTAINABILITY REPORT 2017 REDUCING ENVIRONMENTAL IMPACT

Fuel plants is excluded from the calculations, the energy at the workplaces in question in 2017 Energy Consumption Energy Sold Consumption share of Scope-1 emissions in total emissions added up to a total of 192,502 tonnes of CO2 Hot Water falls to 12%. equivalent. Heating Consumption Fossil Fuels Region/Site Electricity (TJ) & Cooling for Heating Electricity (TJ) The Scope-1 greenhouse gas emissions The aggregate carbon footprint of all of the (TJ) Purposes (TJ) &Cooling stemming from fuel consumption, cooling ENKA workplaces where measurements Purposes (TJ) gases and fire extinguishers accounted for a were made in 2017 worked out at 9,573,355

ENKA İnşaat 213.10 75.61 - - - large percentage of ENKA’s carbon footprint tonnes of CO2 equivalent.

in 2017. In terms of CO2 equivalent, the total Çimtaş Çelik İmalat amount of Scope-1 emissions in 2017 was In the activities conducted in the 2017 re- Montaj ve Tesisat A.Ş. & 38.16 59.62 - - - 9,380,851 tonnes. porting period, there were declines of 2.22% Cimtas Boru İmalatları ve in direct (Scope-1) greenhouse gas emis- Ticaret Ltd. Şti. The greenhouse gas emissions that arise sions and 2.16% in total (Scope-1 + Scope-2) ENKA Power 157,532.28 4.69 14.68 - 89,884.18 during ENKA’s construction activities stem greenhouse gas emissions, by comparison largely from the fuel consumption of vehi- with the preceding year, owing to fluctua- ENKA Real Estate 55.59 726.08 461.21 - cles, equipment used for construction pro- tions in production and other policies and jects and the consumption of electricity on practices. Indirect (Scope-2) greenhouse gas 142 Istanbul ENKA Schools 6.56 3.65 - - - the project sites. emissions were 0.96% higher than in 2016. 143 Conscious and systematic work on reducing ENKA Sports Club 19.60 7.26 - - - The Scope-2 emissions resulting from the greenhouse gas emissions is planned to consumption of electricity, steam and heat begin in all workplaces as of 2018. ENKA Pazarlama İhracat 8,333 4.21 - - - İthalat A.Ş.

TOTAL 157,873 881.12 14.68 461.21 89,884.18

Energy Intensity activities constitute “Scope-1 direct greenhouse gas emissions”, and the greenhouse The energy intensity of 12 ENKA Group com- gas emissions stemming from the consump- panies and two projects has been calculated, tion of energy obtained from outside the taking into account all the energy consumed organisation in the form of electricity, heat as a result of their activities. In order to re- and steam were classed as “Scope-2 indirect port energy intensity, annual turnover in US energy greenhouse gas emissions”. As it was dollars was used as an indicator. The energy not possible to obtain sufficient and accurate intensity of the ENKA workplaces covered data, emissions falling into “Scope-3 other by the calculations was found to be 78.2 TJ indirect greenhouse gas emissions” were per million US dollars of turnover. excluded from the calculations for the 2017 reporting period. Direct and Indirect Greenhouse Gas Emissions Scope-1 emissions account for about 98% of all emissions. This high ratio is due to the In the scope of ENKA’s greenhouse gas amount of fuel consumed by the natural gas emissions calculations for 2017, the green- combined cycle power plants. When the fuel house gas emissions arising from ENKA’s used for electricity generation in the power ENKA SUSTAINABILITY REPORT 2017 REDUCING ENVIRONMENTAL IMPACT

2016 Total 2017 Total 2016 Scope -1 2017 Scope -1 Company/Project Company/Project (Scope-1+ Scope-2) (Scope-1+ Scope-2) (tonnes CO2e) (tonnes CO2e) (tonnes CO2e) (tonnes CO2e)

Adapazarı Elektrik Üretim Ltd. Şti. 1,883,730 1,829,315 Adapazarı Elektrik Üreti Ltd. Şti. 1,883,811 1,829,478

Cimtas Boru İmalatları ve Ticaret Ltd. Şti. 506 1,022 Cimtas Boru İmalatları ve Ticaret Ltd. Şti. 5,747 5,910

City Center Investment B.V. 264 303 City Center Investment B.V. 42,557 43,660

Çimtaş Çelik İmalat Montaj ve Tesisat A.Ş. 625 1,104 Çimtaş Çelik İmalat Montaj ve Tesisat A.Ş. 5,866 4,075

ENKA Headquarters 220 202 ENKA Headquarters 1,058 1,042

144 145 ENKA Pazarlama İhracat İthalat A.Ş. 142 660 ENKA Pazarlama İhracat İthalat A.Ş. 640 1,239

ENKA TC Limited Liability Company 5,047 4,162 ENKA TC Limited Liability Company 109,719 106,522

ENKA Sports Club 161 147 ENKA Sports Club 1,226 1,145

Gebze Elektrik Üretim Ltd. Şti. 3,874,829 3,897,160 GebzeElektrikÜretimLtd. Şti. 3,874,991 3,897,485

Istanbul ENKA Schools 84 84 Istanbul ENKA Schools 559 585

İzmir Elektrik Üretim Ltd. Şti. 3 , 811, 62 0 3,631,000 İzmir ElektrikÜretimLtd. Şti. 3,811,766 3,631,157

Moskva Krasnye Holmy 581 676 Moskva Krasnye Holmy 16,668 15,821

Hotel Moskva Krasnye Holmy 101 95 Hotel Moskva Krasnye Holmy 9,606 8,918

Kashirskaya Multi-Functional Trade Center 1,949 2,753 Kashirskaya Multi-Functional Trade Center 3,236 8,707

SCPX-Area 81 Site 3,617 2,217 SCPX-Area 81 Site 4,477 2,774

SCPX-CSG- 1 Site 3,727 3,587 SCPX-CSG- 1 Site 5,376 5,132

SCPX-CSG-2 Site 7,183 6,363 SCPX-CSG-2 Site 7,734 9,702

TOTAL (tonnes) 9,594,386 9,380,851 TOTAL (tonnes) 9,785,037 9,573,355 ENKA SUSTAINABILITY REPORT 2017 REDUCING ENVIRONMENTAL IMPACT

The following policies have been put into those, which are more efficient in terms

effect within the ENKA Group with the aim of energy consumption, with the aim of Cimtas Boru İmalatları ve Ticaret Ltd. Şti. 43 tonnes CO2e per one million US dollars to minimise the level of emissions from ac- achieving a reduction in the total amount ENKA TC Limited Liability Company 1,076 tonnes CO e per one million US dollars tivities and managing environmental risks: of energy consumed. 2

Moskva Krasnye Holmy 559 tonnes CO2e per one million US dollars • At the power plants, resource efficiency • All the equipment in our machinery park Hotel Moskva Krasnye Holmy 537 tonnes CO e per one million US dollars and advanced emission control technol- is subject to regular and timely mainte- 2 ogies (AGP.DLN2,+6) are in use to meet nance. This prevents any increase in their City Center Investment B.V. 399 tonnes CO2e per one million US dollars the need for power while lowering green- fuel consumption and hence in their po- 35 tonnes CO e per one million US dollars house gas emissions. This investment tential emission levels. Istanbul ENKA Schools 2 has reduced emissions by approximately *CO2 equivalent 225,000 tonnes of CO . • Speed limits introduced for vehicles on 2 work sites serve to reduce fuel consump- • The food waste generated in the canteen tion and the volume of emissions stem- of the SCPx project under way in Georgia ming from vehicles. is dried in a food drying unit, resulting in a lower volume of dry, hygienic food waste • The materials to be used in offices and worksite buildings are chosen with a view 146 through waste minimisation. The dry Greenhouse Gas Emission Intensities of of construction area. The great majority of 147 to reducing the energy consumption that food waste is then converted to energy ENKA Buildings the buildings for which these calculations may arise due to variations in temperature. in a Biomass System, and the energy pro- have been made are used as offices. In some duced is used to provide the camp area The greenhouse gas emission intensities • Posters and signs are used to increase the cases, open areas where energy consump- with hot water. This arrangement leads to of the buildings used in the activities of awareness and knowledge of employees tion or other activities that lead to emissions fuel savings. ENKA have been calculated in terms of the working in our projects regarding energy take place have also been included in the volume of greenhouse gas emissions, ex- calculations. • When purchasing construction machinery conservation and environmental matters pressed in CO2 equivalent, per square metre and equipment, preference is given to and to ensure that they integrate this approach into the work they perform.

Greenhouse Gas Emission Intensity US dollars. The greenhouse gases included in the intensity calculations are made up of The intensity of the greenhouse gas emissions Scope-1 and Scope-2 emissions. All kinds of Emission Intensity by Total Construction Area (m2) of the various companies and sites for which greenhouse gas emissions have been con- calculations have been made is reported ENKA Sports Club 0.10 tonnes CO e/m2/year cerned into their C02 equivalents. 2 here in relation to their annual turnovers in 2 ENKA Pazarlama İhracat İthalat A.Ş. 0.05 tonnes CO2e/m /year 2 ENKA Power (Adapazarı, Gebze, Izmir) 16.37 tonnes CO2e/m /year ENKA Sports Club 14 tonnes CO e*per one million US dollars 2 2 Çimtaş Çelik İmalat Montaj ve Tesisat A.Ş. 0.08 tonnes CO2e/m /year ENKA Pazarlama İhracat İthalat A.Ş. 5.6 tonnes CO2e per one million US dollars 2 Cimtas Boru İmalatları ve Ticaret Ltd. Şti. 0.11 tonnes CO2e/m /year İzmir Elektrik Üretim Ltd. Şti. 6,967tonnes CO2e per one million US dollars 2 ENKA TC Limited Liability Company 0.16 tonnes CO2e/m /year Adapazarı Elektrik Üretim Ltd. Şti. 6,900tonnes CO2e per one million US dollars 2 City Center Investment B.V. 0.27 tonnes CO2e/m /year

Gebze Elektrik Üretim Ltd. Şti. 7,308 tonnes CO2e per one million US dollars 2 Istanbul ENKA Schools 0.03 tonnes CO2e/m /year

Çimtaş Çelik İmalat Montaj veTesisat A.Ş. 65.3 tonnes CO2e per one million US dollars ENKA SUSTAINABILITY REPORT 2017 REDUCING ENVIRONMENTAL IMPACT

Waste Management Emission Intensity Per Employee

Çimtaş Çelik İmalat Montaj ve Tesisat A.Ş. 6.7 tonnes CO2e per person

Cimtas Boru İmalatları ve Ticaret Ltd. Şti. 4.8 tonnes CO2e per person In all the regions and places it works, ENKA waste management is properly addressed.

ENKA Headquarters 1.89 tonnes CO2e per person manages its waste in such a way as to mini- For instance, in the offices and shopping mise its impact on the environment, paying centres, which ENKA TC owns and manages ENKA Pazarlama İhracat İthalat A.Ş. 6.5 tonnes CO e per person 2 due attention to the waste hierarchy. All re- in Moscow, awareness-raising activities are Istanbul ENKA Schools 5.9 tonnes CO e per person lated operations are conducted in the con- conducted even for tenants and customers, 2 text of waste management plans developed to ensure that they show the necessary in accordance with the ISO 14001:2015 sensitivity. ENKA Sports Club 3.9 tonnes CO2e per person Waste Management System standard, and ENKA makes maximum efforts to prevent İzmir Elektrik Üretim Ltd. Şti. 25,042 tonnes CO2e per person in compliance with the local legislation in the country where the activity is being carried leaks and spills and takes all necessary pre- Gebze Elektrik Üretim Ltd. Şti. 35,432 tonnes CO e per person 2 out. cautions to prevent any leaks from reacting with the soil or water. During the reporting Adapazarı Elektrik Üretim Ltd. Şti. 33,263 tonnes CO e per person 148 2 ENKA’s primary approach to the manage- period, there were no major (Tier-III) leaks 149 City Center Investment B.V. 364 tonnes CO e per person ment of waste is to prevent or reduce the or spills at any ENKA workplace. During the 2 amount of waste at source as much as pos- SCPx pipeline project under way in Georgia,

Moskva Krasnye Holmy 158 tonnes CO2e per person sible, and to recycle and re-use those wastes 17 Tier-II leaks occurred. These leaks were which are formed in spite of this. In cases handled in the shortest possible time under 30 tonnes CO e per person Hotel Moskva Krasnye Holmy 2 where these primary steps cannot be imple- Emergency Response Plans. Absorbent pads mented, waste is categorised and disposed and granules were used, and contaminated ENKA TC Limited Liability Company 324 tonnes CO e per person 2 of via authorised institutions. soil was packed into special bags, which were transported to the relevant temporary In addition, training and awareness raising storage area and subsequently disposed of activities aimed at employees and relevant in the same way as hazardous waste. Greenhouse Gas Emission Intensity in from the SCPx Project in Georgia and the stakeholders are carried out in all of ENKA’s Construction Activities Kashirskaya Multi-Functional Trade Center in subsidiaries and workplaces so as to ensure

Russia have been calculated in terms of CO2 Construction work is one of the most impor- equivalent, and these have been set against tant fields of activity of ENKA İnşaat, and the total number of person-hours worked construction sites are responsible for a por- per year on the projects in question in order tion of the ENKA Group’s greenhouse gas to calculate the emission densities of these emissions. All of the Scope-1 and Scope-2 projects. greenhouse gas emissions stemming

Kashirskaya Multi-Functional Trade Center 0.02 tonnes CO2e/person-day

SCPX-CSG- 1 Site 0.04 tonnes CO2e/person-day

SCPX-CSG-2 Site 0.05 tonnes CO2e/person-day

SCPX-Area 81 Site 0.06 ton tonnes CO2e/person-day

ENKA Headquarters 0.02 ton tonnes CO2e/person-day ENKA SUSTAINABILITY REPORT 2017 REDUCING ENVIRONMENTAL IMPACT

Environmentally-Friendly Buildings

Environmentally friendly buildings are known the projects that ENKA has completed to to consume less energy and water, cause date have been awarded LEED certificates. lower greenhouse gas emissions, provide their users with a more comfortable and Similarly, Cimtas Pipe has completed the pleasant environment and generate savings LEED Certification work, which it began due to their lower operating costs. Although in June 2016, and its Pipe Work plant has the investment costs of environmentally earned the right to LEED Gold certification. 150 friendly buildings are higher than those build- Green buildings are certified in accord- 151 ings constructed in the standard manner, the ance with a set of criteria that includes, in features they incorporate enable them to redeem the extra cost rapidly.

In recent years, ENKA TC has embarked on a process of major investments to convert its older buildings Pazarlama, Istanbul ENKA Schools, ENKA into new buildings that are Total Amount of Waste by Type capable of meeting modern and Disposal Method Sports Club, ENKA TC, CCI, MKH and OMKH workplaces in Russia, and selected ENKA requirements and more re- sponsive to the environ- The following table encompasses data from: projects – namely, the Kashirskaya Multi- Functional Trade Center in Russia and the ment. The Kuntsevo Plaza ENKA Headquarters, ENKA Power elec- project, for instance, holds tricity generation plants in Adapazarı, Gebze CSG-1, CSG-2 and Area 81 sites of the SCPx project in Georgia. a Russian Green Building and Izmir, Çimtaş Steel, Cimtaş Pipe, ENKA certificate and is one of 37 green investments in Russia. The Kashirskaya summary, the energy efficiency of the ma- Multi-Functional Trade Center project, which chinery selected, and the reduction of neg- Non- Non- is under construction in Moscow, has been ative impacts on the environment during all Hazardous Hazardous Hazardous Hazardous awarded a project design certificate, which processes from the purchase of materials Waste (kg) Waste (m3) Waste (kg) Waste (m3) is the first step towards meeting Russia’s onwards, the quality of interior spaces, and national Green Building Standard. It is also the adoption of environmentally friendly and Recycling 1,627 - 1,249,661 11, 828 aiming to obtain LEED Gold certification. innovative approaches. It is the first time that Recovery (including energy 231,463 - - 34 Also in future investments, the aim will be this certificate has been awarded to a pipe recovery) to control the potential negative impacts on fabrication facility anywhere in the world. Disposal by licensed waste human beings and the natural environment 254,235 466.5 9,477,610 62,167 The administration building that forms part disposal companies and keep them to a minimum through the use of the best available expertise and the of the new Cimtas Ningbo plant investment TOTAL 487,325 466.5 10,727,271 74,029 latest science and technology. Fourteen of has also been designed in accordance with the LEED Gold certification criteria. ENKA SUSTAINABILITY REPORT 2017 REDUCING ENVIRONMENTAL IMPACT

Reserves of natural resources are declining significantly as a result of global The Kuntsevo Plaza project, for instance, holds a Russian warming and environmental pollution. Research points to high levels of natural Green Building certificate and is one of 37 green resource use, energy consumption and greenhouse gas emissions in buildings. In order to prevent this, the construction sector has started to adopt the investments in Russia. approach of developing environmentally friendly projects that consume less energy and water and create less waste. Activities of this kind are important 152 if natural resources are to be conserved and sustainable living environments 153 ensured, both in Russia and all over the world.

ENKA TC’s Kuntsevo Plaza project, which went into operation in 2015, received its first Russian Green Building certificate in 2013. Work is now in progress to obtain the same certification for the Kashirskaya Multi-Functional Trade Center project. The work which has been done on the Kuntsevo Plaza and Kashirskaya Multi-Functional Trade Center projects has set a precedent, since they are multi-purpose shopping centres and have been the pioneers in this sector. At the same time, ENKA TC has been a member of the US Green Building Council since 2013.

In our future investments, our goal will be to pay more attention to this issue, to score points on those criteria for which we lost points during the certification of the Kuntsevo Plaza and Kashirskaya Multi-Functional Trade Center projects, and to obtain international certificates with more stringent criteria, such as LEED. Our activities related to environmentally friendly buildings will continue and increase in the context of the ENKA Sustainability Strategy.

Kemal Atay, ENKA TC Project Development and Construction Department Manager ENKA SUSTAINABILITY REPORT 2017 GRI CONTENT INDEX

154 155 GRI CONTENT INDEX ENKA SUSTAINABILITY REPORT 2017 GRI CONTENT INDEX

GRI Content Index Materiality e

Disclosures vic ENKA İnşaat ve Sanayi A.Ș. Jun 201 8 Ser

GRI GRI GRI Standard Page Number Ommissions GRI Standard Page Number Ommissions Indicator Indicator GRI 101: Foundation 102-53 10 -11 - 2016 102-54 10 -11 - 102-1 15 - 102-55 155-160 - 102-2 15-17 - Report has not been subject to external 102-56 - 102-3 15 - verification. 102-4 15-17 - Material Topics 102-5 18-19 - Material Topic: Economic Performance 102-6 15-17 - 103-1 20-21 - GRI 103: Management 102-7 20-21, 106 - 103-2 20-21 - Approach 2016 102-8 106-109 - 103-3 20-21 -

156 102-9 15-17, 42-43, 58-63 - 201-1 20-21 - 157 GRI 201: Economic 102-10 18-19, 22-23 - 201-2 140-141 - Performance 2016 10 2-11 36-40, 64, 130-131, 140-141 - 201-4 20-21 - 102-12 36, 40 - Material Topic: Ethics and Compliance 102-13 45-47 - 103-1 48-56 - GRI 103: Management 102-14 6-9 - 103-2 48-56 - Approach 2016 GRI 102: General 102-16 14, 35, 48-49, 91 - 103-3 48-56 - Disclosures 2016 102-18 18-19, 36 - 205-1 54-56 - GRI 205: Anti- 102-40 41-44 - 205-2 54-56 - Corruption 2016 102-41 52 - 205-3 54-56 - 102-42 28-31, 41 - GRI 206: Anti- Competitive Behavior 206-1 54-56 - 102-43 28-31, 41-44 - 2016 102-44 32-34, 91 - GRI 407: Freedom 102-45 10 -11, 15-17 - of Association and 407-1 51-52 - 102-46 10 -11, 28 -31 - Collective Bargaining 2016 102-47 32-34 - GRI 408: Child Labor 408-1 51-52 - 102-48 There has not been any restatement. - 2016 102-49 This is ENKA's first sustainability report. - GRI 409: Forced or 409-1 51-52 - 102-50 January 1, 2017 - December 31, 2017 - Compulsory Labor 2016 102-51 This is ENKA's first sustainability report. - 412-1 48-52 - GRI 412: Human Rights 412-2 48, 54-56 - 102-52 Annual - Assessment 2016 412-3 48-52 - ENKA SUSTAINABILITY REPORT 2017 GRI CONTENT INDEX

GRI GRI GRI Standard Page Number Ommissions GRI Standard Page Number Ommissions Indicator Indicator GRI 415: Public Policy GRI 204: Procurement 415-1 There is no such practice. - 204-1 61-62 - 2016 Practices 2016

Responsible Supply Chain Management GRI 413: Local 413-1 78-89, 90-91, 92-103 - 103-1 58-63 - Communities 2016 413-2 90-91, 130-133, 137, 149 - GRI 103: Management 103-2 58-63 - Sector Disclosure: Approach 2016 Construction and Real CRE7 91 - 103-3 58-63 - Estate GRI 308: Supplier 308-1 58-63 - Material Topic: Employee Rights and Employee Satisfaction Environmental Assessment 2016 308-2 58-63 - 103-1 110 -114 - GRI 103: Management 414-1 58-63 - 103-2 110 -114 - GRI 414: Supplier Social Approach 2016 Assessment 2016 414-2 58-63 - 103-3 110 -114 - 158 Material Topic: Quality of Products and Services GRI 401: Employment 159 401-3 111 - 2016 103-1 64-67 - GRI 103: Management GRI 405:Diversity and 103-2 64-67 - 405-1 109 - Approach 2016 Equal Opportunity 2016 103-3 64-67 - Material Topic: Employee Training and Development Material Topic: Customer Satisfaction 103-1 115 -118 - 103-1 68-69 - GRI 103: Management 103-2 115 -118 - GRI 103: Management Approach 2016 103-2 68-69 - Approach 2016 103-3 115 -118 - 103-3 68-69 - GRI 404: Training and 404-1 115 -117 - Material Topic: Innovation and R&D Education 2016 404-2 115 -118 - 103-1 70 -75 - Material Topic: Health and Safety at Work GRI 103: Management 103-2 70 -75 - Approach 2016 103-1 119 -127 - 103-3 70 -75 - GRI 103: Management 103-2 119 -127 - Approach 2016 Material Topic: Contribution to the Local Economy 103-3 119 -127 - 103-1 61-62, 78-89, 92-103 - 403-1 120 - GRI 103: Management 103-2 61-62, 78-89, 92-103 - Approach 2016 GRI 403: Occupational 403-2 126-127 - 103-3 61-62, 78-89, 92-103 - Health and Safety 2016 403-3 119-120, 122 - 202-1 86 - GRI 202: Market 403-4 120 - Presence 2016 202-2 86 - GRI 404: Training and 404-1 123-124 - GRI 203: Indirect Education 2016 Economic 203-1 78-89, 90-91, 92-103 - Impacts 2016 203-2 78-89, 90-91, 92-103 - ENKA SUSTAINABILITY REPORT 2017 GRI CONTENT INDEX

GRI GRI Standard Page Number Ommissions Indicator Sector Disclosure: Construction and Real CRE6 119 - Estate Material Topic: Carbon Footprint and Energy Efficiency 103-1 140-148 - GRI 103: Management 103-2 140-148 - Approach 2016 103-3 140-148 - 302-1 141-142 - GRI 302: Energy 2016 302-3 142 - 302-4 141 - 305-1 142-146 - 160 161 GRI 305: Emissions 305-2 142-146 - 2016 305-4 146-148 - 305-5 142-145 - Sector Disclosure: CRE3 147 - Construction and Real Estate CRE4 148 - Water Management 103-1 130 -137 - GRI 103: Management 103-2 130 -137 - Approach 2016 103-3 130 -137 - 303-1 133-135 - GRI 303: Water 2016 303-2 132-133, 137-139 - Waste Management 103-1 149-150 - GRI 103: Management 103-2 149-150 - Approach 2016 103-3 149-150 -

GRI 306: Effluents and 306-2 150 - Waste 2016 306-3 149-150 - ENKA SUSTAINABILITY REPORT 2017 UNGC INDEX v

162 163 UNITED NATIONS GLOBAL COMPACT (UNGC) INDEX ENKA SUSTAINABILITY REPORT 2017 UNGC INDEX

This report has been published using 100% recycled paper. No trees were harmed during its production

United Nations Global Compact (UNGC) Index

Topics The Ten Principles Page Numbers

Principle 1: Businesses should support and 35, 38-39, 48-61, 90-91, respect the protection of internationally 110 -111, 119 -127 proclaimed human rights; and

Principle 2: make sure that they are not 35, 38-39, 48-61, 90-91, Human Rights complicit in human rights abuses. 110 -111, 119 -127

Principle 3: Businesses should uphold the freedom of association and the effective 35, 38-39, 48-61, recognition of the right to collective 110 -111 bargaining; 164 165 ENKA İnşaat ve Sanayi A.Ş. Principle 4: the elimination of all forms of 35 , 3 8 -39 , 110 -111 Balmumcu Mah. Zincirlikuyu Yolu No: 10, 34349 forced and compulsory labour; Beşiktaş İstanbul, Türkiye Phone Number: +90 (212) 376 10 00 Fax: +90 (212) 376 19 80 Principle 5: the effective abolition of child Labour 35 , 3 8 -39 , 110 -111 E-mail: [email protected] labour; and Web: www.enka.com

For any feedback and questions about this Report, please e-mail: Principle 6: the elimination of discrimination 35 , 3 8 -39 , 110 -111 [email protected] in respect of employment and occupation.

Contributors to the Report Principle 7: Businesses should support a Content and Reporting Consultant 35, 38-39, 70-75, 103, precautionary approach to environmental Mikado Sustainable Development Consulting 130 -153 challenges; www.mikadoconsulting.com

Design Consultant Principle 8: undertake initiatives to promote 35, 38-39, 70-75, 103, Environment greater environmental responsibility; and 130 -153 Brand Suite İstanbul www.brandsuiteistanbul.com

Principle 9: encourage the development 35, 38-39, 70-75, 103, LEGAL DISCLAIMER and diffusion of environmentally friendly 130 -153 The ENKA 2017 Sustainability Report (from hereon “the Report”) has been prepared by ENKA İnşaat ve technologies. Sanayi A.Ş. and its subsidiaries (“ENKA” or “ENKA Group”) for information purposes only and does not form a basis for any kind of investment decisions. The content and information in the Report has been prepared using information and sources that were true and credible, to the best knowledge, at the time of preparation of the report. The information and content Principle 10: Businesses should work against given in the Report may not be interpreted as constituting a statement, guarantee and/or promise and it is Anti-Corruption corruption in all its forms, including extortion 35, 38-39, 48-61 not guaranteed that the information and content given in the Report is complete and may not be subject and bribery. to change in the future. All rights of the Report are reserved by ENKA Group.