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Sustainability Report 2019 Sustainability Report • 2019 Contents SUSTAINABILITY REPORT 2019 SUSTAINABILITY REPORT • 2019 CONTENTS A MESSAGE FROM THE PRESIDENT AND CHAIRMAN OF THE EXECUTIVE COMMITTEE .. 4 ABOUT THIS REPORT ............................................................................................. 7 ABOUT ENKA ........................................................................................................ 8 Mission, Vision and Values .............................................................................................14 Governance ...................................................................................................................15 Economic Performance ...................................................................................................19 Important Developments in 2019 .....................................................................................21 Awards Received in 2019 ...............................................................................................24 Sustainability Management at ENKA ..............................................................................28 DOING GOOD BUSINESS Sustainability Materiality Process and Stakeholder Participation .......................................41 Ethics and Compliance ...................................................................................................48 Control Mechanisms and Risk Management .....................................................................57 Responsible Supply Chain Management ..........................................................................60 Product and Service Quality ............................................................................................74 Customer Satisfaction .....................................................................................................78 Innovation and R&D .......................................................................................................82 Meeting the Needs of Communities for Infrastructure and Superstructure ...........................92 DEVELOPING COMMUNITIES Social Impact Assessment ................................................................................................96 Local Employment ........................................................................................................106 Contributing to the Development of the Engineering Profession .......................................108 Social Investments ........................................................................................................ 110 ENKA Foundation, Arts, Sports and ENKA Schools ........................................................ 114 Social Responsibility at ENKA .......................................................................................126 Employee Profile ..........................................................................................................134 CARING FOR EMPLOYEES Employee Rights and Employee Satisfaction ...................................................................140 Employee Training and Development .............................................................................145 Occupational Health and Safety....................................................................................152 Environmental Management ..........................................................................................166 REDUCING ENVIRONMENTAL Water Management .....................................................................................................168 Energy Efficiency and Climate Change .........................................................................172 IMPACT Waste Management .....................................................................................................186 Biodiversity ..................................................................................................................190 Environment-Friendly Materials, Equipment and Green Buildings ..................................... 194 GRI CONTENT INDEX .......................................................................................... 198 UNGC INDEX .......................................................................................................213 2 ENKA 2019 SUSTAINABILITY REPORT 3 DEAR STAKEHOLDERS, Schools Kocaeli. We have extended our afforestation and biodiversity protection activities to the locations in We have left behind a year in which we have our country and around the world which we had not maintained our competitive position at the highest level reached before. As a result of our activities in 2019, we in both international and local markets in every sector prevented approximately 9,000 tonnes of greenhouse we operate and progressed in line with our vision of gas emissions. “stable and determined growth through value creation with stakeholders”. I always take pleasure in mentioning that honest, accountable, transparent and fair business ethics We are keeping our sustainability management approach lies at the heart of all activities of ENKA and dynamic in order to be able to follow the current global its relations with stakeholders. In 2019, in order to instil agenda, to continue to fulfill our obligations as a this approach into the daily decisions and activities of signatory to the United Nations Global Compact and each and every one of our employees, we extended our to maintain our responsible way of doing business that training on ethics, human rights and combating bribery respects human and nature. Accordingly, we invited a and corruption to every location that we operate, large group of our stakeholders to join us in identifying from Iraq to Russia and from China to Kazakhstan. In our material sustainability issues together in 2019. This addition, through the Ethics and Compliance audits report, our 3rd Sustainability Report, has been prepared which we began implementing in 2019, we have in line with the material issues identified as a result of established an additional control mechanism to ensure this broad stakeholder participation. Dear stakeholders, that our projects and subsidiaries fully comply with the I am happy and proud to share this report with you. law and our Code of Conduct and to guarantee that we conduct our business in a manner that respects human In accordance with our sustainability strategy which rights. was formulated to contribute to the Sustainable Development Goals of the United Nations, we have We believe that the journey towards sustainable set challenging goals for ourselves covering our development is possible with the internalisation of entire value chain. I would like to state that we find sustainability approach by all our employees and the feedback which we receive from our internal and business partners and the compliance of every decision external stakeholders, as well as the assessments taken within the company with this approach. In performed by independent organisations, to be this regard, we motivate both our employees and extremely valuable as we continue to work towards our business partners and provide them training these goals. opportunities. We cherish the private sector and civil society partnerships established in this direction and WE ARE AWARE THAT WE LIVE Among these independent assessments, we have we support the organisations concerned in sharing maintained our place in the FTSE4Good Emerging their experiences with each other and developing IN A WORLD WITH LIMITED Markets Index as a result of the environmental, social new collaborations. Accordingly, in 2019, while and governance performance assessment carried maintaining our membership of UNGC, TÜSİAD, TEİD RESOURCES AND WE ARE TAKING out by FTSE Russell. In addition; we were entitled to and BCSD Turkey, we have included ÖSGD among the be included in the BIST Sustainability Index in which organisations we cooperate with. DETERMINED STEPS TO REDUCE companies traded on Borsa İstanbul are included following an assessment of their sustainability As ENKA, we carry out the majority of our activities in OUR ENVIRONMENTAL FOOTPRINT. performance. We are continuing to be assessed for countries in need of social and economic development. the “Emerging Markets” category of the Dow Jones We do not regard our responsibilities as being limited WE BELIEVE THAT COMBATING Sustainability Index. The Carbon Disclosure Project to our contractual obligations to our customers during (CDP) report which we published for the first time in our activities in these countries. On the contrary, we CLIMATE CHANGE IS ONLY 2018 was graded B- score. consider contributing to local communities and local economies in these regions as part of our duties in POSSIBLE THROUGH COLLECTIVE We are aware that we live in a world with limited line with our responsible management approach. The resources and we are taking determined steps to reduce local procurement activities we carried out in 2019 CONSCIOUSNESS AND JOINT our environmental footprint. We believe that combating directly contributed more than USD 250 million to the climate change is only possible through collective economies of these countries. When we combine this ACTION OF THE INDIVIDUALS, consciousness and joint action of the individuals, amount with our direct and indirect local employment corporations and organisations. We are implementing contribution and with the sectoral dynamism we have CORPORATIONS AND the strategy we have developed for this purpose and created in the regions, I can say that the positive social working towards the goals we have adopted
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