Vodafone 2016/17 Sustainability Report Contents

Forewords 1

Vodafone Turkey 3

Our Sustainable Business Strategy 5

Women’s Empowerment 9

Energy Innovatıon 20

Youth Skills and Employment 37

Principles and Practice 46

Our Approach to Human Rights 47 Our People 48 Occupational Health and Safety (OHS) 54 Our Contribution to The Economy and Public Policy 61 Combatting Bribery and Corruption 63 Mobiles, Masts and Health 64 Supply Chain Integrity and Safety 67 Corporate Security, Confidentiality of Information and Data Security 71

Innovation 75

Vodafone Turkey Foundation 78

Appendix 83

Contact 110 Our Sustainable Women’s Energy Youth Skills and Principles and Vodafone Turkey Vodafone Turkey Innovation Appendix BusinessStrategy Empowerment Innovatıon Employment Practice Foundation

Message from Vittorio Colao CEO, Vodafone Group

The modern world cannot function without and upgrading the digital infrastructure skills in a changing world. To date, it has put our aspirations into practice, and I would digital networks. Our products and services relied upon by families, communities and reached 4,558 children with an aim to reach like to thank them for their contribution to play a central role in the daily lives and companies, with an investment in Turkey of 10,000 children across 30 cities in the our commitment to building and growing livelihoods of more than half a billion 1.2 billion TL. Those investments provide 2017/18 fiscal year. Vodafone as a purpose-led, sustainable people across more than 26 countries and different demographic groups – rich and business. over 22 million mobile customers in Turkey. poor, young and old, educated and unskilled A commitment to ensuring that business Technologies such as ultrafast 4G+ mobile, – with the ability to connect, learn and goals and societal benefits are as aligned as Vittorio Colao fibre-optic networks, cloud computing and advance their ambitions. Few industrial possible is even more important amid public CEO the Internet of Things (IoT) are transforming sectors can claim a closer alignment mistrust of multinational corporations and Vodafone Group businesses big and small in both mature between their financial objectives and the governments. markets and – increasingly – emerging achievement of material societal gains. markets. As the workplace changes, so Our approach to what we call sustainable What we do matters; but so does how we does the home. Consumers have access to business is to ensure that our work always work. We will always strive to ensure we act content and information of a breadth and delivers positive social outcomes, not just responsibly and with integrity at all levels, depth that was inconceivable even a decade commercial and financial success. In our wherever we operate. Throughout all of ago. Mobile is bringing about a revolution view, the former reinforce the latter; they are Vodafone – from the Vodafone Group Plc in access to education, healthcare and not mere ‘offsets’ against them. Board to our smallest operating company financial services for millions of people in and our smallest suppliers – we place great the world’s poorest communities, offering I would highlight in particular, Vodafone emphasis on ensuring the appropriate – for many – an opportunity to break out of Turkey’s progress against one of the three conduct and behaviours as set out in our the cycle of endemic poverty. main pillars of our sustainable business Code of Conduct1, supported by our strong strategy, Youth Skills and Jobs. The commitment to corporate transparency. Vodafone’s core business therefore also programme, Coding Tomorrow, offers young delivers a substantial return to society as a people the opportunity to learn coding During the year, we have engaged with a whole. During the year, we invested more skills, gain an insight into the potential of range of stakeholders with an interest in our than €7.7 billion globally in maintaining technology and the importance of digital activities. Their views shape how we have

1 http://www.vodafone.com/content/index/about/conduct.html

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Message from Colman Deegan CEO, Vodafone Turkey

As a global player in the telecommunication Empowerment”, will be achieved by our core As for energy innovation, another pillar The initiatives focusing on the main pillars industry, which is considered to be the long-term business objectives. of sustainable business strategy, we offer of our “sustainable business” strategy are driving force of economic and social smart solutions and services for a wide designed through participatory dialogue development, we are aware of our great As a company committed to digitalizing range of industries including finance, health, and collaboration, taking into account the responsibility for sustainability. So, to us, Turkey, we intend to support Youth Skills agriculture, urbanization, manufacturing inputs, expectations and suggestions of our sustainability is not a matter of choice and Jobs by enabling the kids in our country and energy. More than 65% of our IoT stakeholders. And, our investment plans are but an essential and integral part of our to grow up in a digital culture. With this in (Internet of Things) product range supports shaped accordingly. core business strategy. Our approach mind, we developed the “Coding Tomorrow” mitigation measures to reduce greenhouse to sustainability is primarily based on initiative to raise children’s interest in and gas emissions. We are excited to publish our seventh leveraging digitalization effectively to awareness of coding in order to contribute sustainability report created in the light increase quality of life in our communities to growth of a digital generation, which As part of our commitment to increase of our stakeholder dialogue processes. and using technology for good. We believe we believe is crucial for our country. the proportion of women in management Authored in line with the principles of that digitalization will have a decisive role in Regarded as the “language” of the digital and leadership roles, we launched the “Transparency” and “Accountability”, this the future world, thanks to its innovative and world, coding fosters children’s creativity ReConnect recruitment program to bring report outlines our company’s sustainability transforming power. and inspires innovative thinking. Coding talented women back into the workplace strategy, commitments, practices and education helps children grow beyond after a career break and thus, promote performance during the FY 2016/17. Our efforts towards the vision of leading being only consumers of technology and their access to equal economic and social digitalization in Turkey are underpinned teach them how to create new technology opportunities. Vodafone Turkey will continue to address by the “sustainable business” strategy or digital art. We believe that the young sustainability as an integral part of our core announced by the Vodafone Group in early people with coding skills will be both the business strategies and lead the way for a 2016. This strategy outlines our intention architects and actors of the Gigabit Society sustainable future. to work towards three significant global that we aim to create in Turkey. On the other transformation goals that have the potential hand, our Women First in Entrepreneurship Colman Deegan to deliver meaningful socio-economic program aims to give women access to CEO benefits for our customers and wider the world of possibilities enabled by the Vodafone Turkey society. We believe that transformation in communication technologies and nurture these three areas, namely “Youth Skills and their entrepreneurship skills to promote Jobs”, “Energy Innovation” and “Women’s their involvement in the business life.

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Vodafone Turkey

We continue to work as part of Vodafone We continue to grow fast in fixed broadband Group plc, serving more than half a billion as well. With 200 thousand rise in net people in 26 different markets. In this report, customers in fiscal year, we increased the we present a summary of our sustainability number of our customers by 55% to 562 strategy and our performance during thousand compared to the same period Vodafone Turkey’s fiscal year from of the previous year and in parallel, we 1 April 2016 to 31 March 2017. increased our service revenues from fixed services by 60%3 . Corporate Performance In addition, the data usage of our customers We provide mobile voice, fixed voice, has doubled compared to the previous mobile internet, ADSL and fiber services to year and increased to 400 petabytes in the individuals and institutions in line with our 2016/17 period. Smartphone penetration vision of leading the digitalisation of Turkey. increased by 9 points from the previous year We carry out our operations with a workforce and had reached 72% by the year-end. of more than 3,300 employees, 1,200 retail stores and 43,000 shareholders in our ecosystem. 1The number of customers was calculated based on Vodafone Group’s customer definition. The main reason for the difference from the number disclosed in the ICTA Quarterly Market Outlook The number of our mobile customers Report is the exclusion of M2M’s. Data and financial information determined based on customer numbers therefore may differ. reached 22.8 billion1 at the end of the 2016/17 period. The number of our total net 2Number of 4.5G customers represents the customers who have sim cards and devices that are 4.5G compatible and are in the customers has increased by 616 thousand system. and the number of our 4.5G customers has 3Growth rates are organic. reached 9 million2 by the year-end. We continue to have the widest 4.5G coverage by utilizing more than 10 thousand 4.5G communication points in the 81 cities of Turkey.

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Vodafone Turkey in Figures* ≈ TRY 20 billion TOTAL INVESTMENTS TO DATE 40,000 TRY 8 billion NUMBER OF PEOPLE THAT SERVICE REVENUES WE PROVIDE EMPLOYMENT OPPORTUNITIES

TRY 29 million �1,200 SOCIAL INVESTMENTS OF STORES VODAFONE TURKEY FOUNDATION

410 3,323 EMPLOYEES VODAFONE VOLUNTEERS 22.8 million MOBILE CUSTOMERS *Figures reflect the 2016/17 fiscal year end.

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Our Sustainable Business Strategy Purpose

We connect everybody to live a better today and build a better tomorrow. potential to deliver meaningful socio- economic benefits for our customers and Transformation society at large. We foresee supporting this transition with our long term business Women’s Empowerment commitments.

We fulfil our strong commitment to Energy Innovation responsible behaviour and corporate transparency through our sustainable business strategy, and we aim to maximise Youth Skills and Jobs the social and economic value we deliver.

In accordance with our commitment to Transparency the principles of the UNGC (United Nations Global Compact) which we voluntarily signed Tax and Total Economic Contribution in 2015, we will continue our work on human rights, operating standards, environment and anti-corruption without pause. Supply Chain Integrity and Safety As a group company, we follow the “Sustainable Business” strategy, published Our Approach towards at the beginning of 2016 by the Vodafone Mobiles, Masts and Health Sustainable Development Goals Group, and develop our sustainability plans and targets in alignment with this strategy. In September 2015, members of the Digital Rights and Freedoms United Nations accepted 17 Sustainable Our intention to work towards three Development Goals (SDG) in order to significant global transformation goals by eradicate extreme poverty, inequality and 2025 is the main focus of our sustainable injustice and to combat climate change by Principles and Practice business strategy. Each goal has the 2030.

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We are aware of our important role in GOAL 1 reaching these goals. We played a lead End poverty in all its formseverywhere role and assessed the 17 goals based on the sector in which we operate and on our Our Contribution corporate priorities. As a result, we have • Our work on Women’s mapped our practices and approaches for 6 Empowerment material goals and decided to expand and enrich our practices for these 6 goals in the • Our work on Youth Skills and future. Employment

Through our service network, innovative • Our Smart Village project products and services, we contribute to ease people’s lives and access to information through access to communication. With our GOAL 2 sustainable business strategy, we aim to End hunger, achieve food security and maximise the social and economic benefits improved nutritionand promote sustainable we can offer with our activities. We shaped agriculture our sustainable business strategy in a way that will contribute to the following SDGs Our Contribution that we have identified as material. Our Smart Village project

GOAL 4 Ensure inclusive and equitable quality education and promote lifelong learning opportunities for all

Our Contribution Our work on Youth Skills and Employment

GOAL 5 Achieve gender equality and empower all women and girls

Our Contribution Our work on Women’s Empowerment

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GOAL 9 Differences in access to these services of the society. The contribution of Build resilient infrastructure, promote lead to increasingly larger gaps the telecommunication industry inclusive and sustainable industrialisation between different parts of society. is important in the context of the and foster innovation Supporting all levels of society by development of the innovation providing access to information and ecosystem, the increase of R&D Our Contribution communication technologies plays investments and the proper IoT solutions and our work on Smart Cities a vital role in supporting sustainable development of the digital development with reduction of this transformation of human resources. digital gap. GOAL 13 In order to achieve Sustainable Take urgent action to combat climate Development Goals, we need to change and its impacts move away from our understanding of business-as-usual and bring more Our Contribution comprehensive and innovative Our work on Energy Innovation solutions. It is very important that we develop environmentally friendly technologies and make it accessible to everybody in order to use diminishing Stakeholder Opinion natural resources more efficiently and tackle climate change. At this EROL BILECIK point, I believe that the Digital TÜSİAD President Transformation Movement, which Vodafone has initiated with its mission of “Inspiring everyone in Turkey with communication technologies for a better future”, is a good example for both the sector and the whole business world. In many areas such Internet access is indispensable for as health, agriculture finance and each individual and it is considered urbanisation, Vodafone Farmer’s Club, a fundamental right in the digital Ready Business and Smart Cities financial system. Given the platforms effectively use technology Sustainable Development Goals, and make it accessible for everyone. “In the digital age we are living the telecommunication industry This shows us that it is possible to in, access to information and plays a pivotal role, especially by create benefit for the environment, communication technologies is one of providing broadband internet access society and companies when we the most important variables directly and supporting the expansion of combine technology and big data with affecting the level of development. digital transformation to all parts sustainability.

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Recent developments such as efforts to shed light on this change Turkey’s commitment to international decreasing natural resources, climate and understand what the future is agreements and its responsibilities are change, and increasing social going to look like. The business world, closely related to the business world. problems have made sustainability which is expected to act responsibly In this context, we share our policy one of the priorities for countries towards the planet and society, proposals in order to create a holistic all over the world. Thinking of the must keep sustainability at the strategy and fulfil commitments. Mediterranean basin as one of the heart of its work in order to be able regions that will be most affected by to achieve international standards, As TÜSIAD, we have been advocating climate change, it is highly important build trust with its consumers and for many years that, women have to to also consider the economic and compete globally. As TÜSİAD, we aim be treated equally in business life social aspects of climate change for our country to have sustainable along with the environmental ones. A growth and a strong economic and study measuring the OECD countries’ social structure. It is inspiring to current performance for each see Vodafone’s work in the field of Sustainable Development Goal shows women’s employment, one of the that Turkey ranks 33rd among the major problems of our country. In 34 countries - second from the last. In addition to having a high female particular, health, education, gender employee ratio that is above the equality and working standards sector average, Vodafone supports are the areas we need to improve women entrepreneurs, conducts ourselves on the most. On the other studies that increase women’s access hand, Turkey is only ranked at second to technology, and develops social among OECD countries regarding the responsibility projects such as the increase of greenhouse gas emissions. “Vodafone Women First Program” This picture reveals to us the which all contribute to increasing necessity of timely action from Turkey women’s social and economic well- with a holistic strategy for sustainable being. development. to increase sustainability awareness I would also like to congratulate TÜSİAD is an institution that has in our companies, especially at the Vodafone for taking a leading role closely followed the world’s agenda senior management level. We all know by reporting all of these efforts since the day it was founded and has that it is not possible to achieve this transparently to its stakeholders pioneered the business world and the transformation without the will and in accordance with international public. Our planet and the business commitment of top management. standards and raising reporting world are going through a big change, In addition to this, we closely follow performance higher and higher each and we have placed the issue of the sustainability agenda of the year.” sustainability in the centre of our world and inform our members.

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22,339 women were trained on entrepreneurship, communication, financial legislation, digital and mobile technologies and marketing since April 2015.

PLEASE SCAN THE QR We are CODE TO VISIT supporting ONCEKADIN.GOV.TR the productive Women of the Information Society.

By introducing women to Our goal is to facilitate the the possibilities information sales of meticulously hand technologies make available crafted products with the help with our Women First in of technology and support Entrepreneurship Program, we the families by transforming are aiming to increase their what started as a hobby into an participation in the workforce income generating activity. and their capacities for entrepreneurship.

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Women’s Empowerment

We recognise gender equality as a key Social and economic conditions of the indicator of long-term social security country and industry expectations play a and economic progress. By empowering decisive role in our institutional priorities women and supporting gender equality, we under diversity and inclusion. We believe contribute to the prosperity of the business that the involvement of women in business world including society, economy and our life and issues of equal opportunity, which own business. are within these priorities, have a high importance. Hence, we have made women’s As Vodafone Group, our commitment employment an important building block in includes an aspiration to become the world’s our corporate culture. best employer for women by 2025. Taking into account that the average Our Employees rate of female employees in the telecommunication sector is only 23.2%, Women’s involvement in business we consider Vodafone Turkey’s 43% performance in this regard - almost twice as life and equality in opportunity high as the sector average - to be a success factor. We continue to work on improving OUR COMMITMENT OUR PERFORMANCE IN THE diversity in order to increase this ratio 2016/17 FISCAL YEAR and to have more female employees in We will become a workplace that sets an management positions. We have achieved example with its “sensitivity towards gender The ratio of female employees is successful results in this area by having 32% equality”. 43% in our workplace. female employees in middle management, with a 2% increase compared to the OBJECTIVES FOR THE 2016/17 OBJECTIVES FOR THE 2017/18 previous fiscal year. FISCAL YEAR FISCAL YEAR We are the first telecommunication To take initiatives to increase the ratio of To take initiatives to keep the ratio of female company to receive the “Equal female employees to over 40%. employees over 40%.

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Opportunities Model Certificate” (FEM) with field” throughout the Vodafone Group and Employee Gender Distribution our vision of providing equal opportunities presented to 22 Vodafone countries as a Male Female for men and women in 2012 and we have case study. continued our good work in this area at an Gender Distribution of New Recruits (%) accelerated pace since then. We received In line with our diversity and inclusion goal, 2014/15 special awards such as “Best Workplaces we strive to create equal opportunities for Fiscal Year 50 50 for Diversity” in 2014 by the Great Place to female employees with new recruitments. 2015/16 51 49 Work Institute and “Cooperation of Different Fiscal Year

Generations” in 2015. 2016/17 Fiscal Year 54 46 We reassured our commitment to this issue by becoming a signatory of the Women’s Gender Distribution by Staff Category (%)

Empowerment Principles (WEPs), a United SENIOR MANAGEMENT Nations initiative, in 2016. On 15-16 March 2014/15 66 34 2016, we shared our activities and results Fiscal Year regarding women at the “WEPs World Tour: 2015/16 67 33 Actions and Achievements” panel, part Fiscal Year of the Women’s Empowerment Principles 2016/17 Fiscal Year 67 33 event in New York. MIDDLE MANAGEMENT

In order to increase the “diversity and 2014/15 Fiscal Year 72 28 inclusion” perception within our company, 2015/16 we ensure that our team managers and all Fiscal Year 70 30 management receive diversity and inclusion 2016/17 68 32 training. Fiscal Year

OTHER We run special mentoring programs to ReConnect Program 2014/15 55 45 increase this number in our technology Fiscal Year With our ReConnect initiative, which was function where the number of female 2015/16 55 45 managers is at a minimum level. In the launched in 26 countries as the largest Fiscal Year program, female employees in the pool recruitment program in the world in 2016/17 Fiscal Year 54 46 of mentors and mentees are matched March 2017, we aim to bring back women under the defined criteria and trainings are professionals who have been on career TOTAL AVERAGE given on how they can better manage the break. With the Vodafone Group’s ReConnect 2014/15 Fiscal Year 58 42 mentoring process and how they can focus initiative, we are putting forth our efforts to reach 1,000 women in 26 countries in 2015/16 on the development goals of the mentee Fiscal Year 58 42 in the process. Our training program has the next 3 years and to increase the ratio of 2016/17 57 43 been described as the “best program in its female employees in management and Fiscal Year

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Stakeholder Opinion leadership roles. The plan is to recruit 500 6 ReConnect candidates began to work in women who have taken career breaks to our Corporate Relations, Technology and BURCU ERDUR management positions within the next 3 Marketing functions. Market Research & Peer Analysis years and make sure this number comprises Senior Manager 10% of our external management recruits Women in Technology Internship in this period. In addition, it is expected that Program nearly 500 women who have been on career breaks will be recruited for other positions. It is easily observed that the number of female engineers in Turkey is very low and women are pulling away from business life because of the challenges faced in male intensive sectors. For a sustainable future, we believe that women’s economic participation in every sector is important. Thus, we launched the Women in Technology Internship (WIT) “First of all, it is very promising to Program for young women studying in have such a program through which engineering faculties to increase the rate Vodafone aims to bring women back of female employees, which is 23.7% in our to business life in the world and in Technology Facility. Turkey. I feel very fortunate to be a part of the Vodafone Reconnect With the Women in Technology Internship program. As a working mother, I Program, we aim to bring women believe in work-life balance more than technology leaders not only to the company ever. Working makes me feel more but also to the sector. Our Program targets efficient, dynamic and complete; young women who want to pursue a career I believe that I am being a good in technology / telecommunications, example to my daughter with this life studying in their third year of related balance as well. Unfortunately, similar Under the ReConnect Program, we departments in engineering faculties. Before approaches are not very common in organised a wide-ranging event on 25 graduating from university, we provide the countries like Turkey. We know that September in cooperation with the opportunity to participants to perform two many talented and high-potential YenidenBiz Association. We met around 150 internships for six months at different units women have difficulty returning to women who wanted to return to business in the Vodafone Technology Function. This their work after a break. I am proud to life. While the female candidates were enables them to clarify their career path by work in Vodafone, which is leading this informed about the program at the meeting, experiencing their sector of expertise in a program.” they had the opportunity to chat with our rotating working model. HR team at the cocktail afterwards. In 2017,

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To ensure the sustainability of the Program, The main goals of the program are to raise mentors and 35 women mentees took we have integrated it with our youth awareness among our employees, create place, 106 women participated in personal talent program: Discover. A few months an internal communication environment, leadership trainings and 33 women before the end of their internship program, contribute to the development of their participated in communication sessions. students receive priority to participate competencies and personal networks, help in the selection process of the Discover them to take part in other platforms and Society Youth Talent Program. Hence, we aim to support them on their daily practices. With recruit students who have successfully this program, we bring women mentees Women First in Entrepreneurship completed the internship and have shown together with our mentors from the both high potential. We provide the opportunity sales and different functions. We provide Program to young people to benefit from Vodafone’s START DATE local and global career opportunities. With this program, we train our next generation April 2015 leaders internally at Vodafone Turkey. OUR PARTNERS As part of the Technology Internship Program, which was launched in 2016, 15 • Ministry of Education (MEB) female students completed their internships and 3 participated in the Discover Youth • Turkish Informatics Talent Program and joined Vodafone Turkey. Foundation (TBV) In the 2017/18 period we will continue the Program and include our Sales Function in OUR GOAL scope of the Program as well. The Women in Technology Internship Program was Introduce women to the opportunities presented by Vodafone Group as an example offered by communication technologies and to all Vodafone countries and we were increase their participation in their work life awarded with the first prize in the Vodafone and entrepreneurial capacity. Group ‘ConnectedSheCan’ Awards, where projects in the field of diversity and inclusion personalized leadership trainings tailored OUR TARGET AUDIENCE AND REACH were evaluated. to them and seminars with speakers from different areas of subject expertise, as well • Unemployed women “Discover the Power in Yourself’’ as providing learning and development Program opportunities while supporting them to • 240 consultants delivered training to discover their self-potential. 22,339 women on entrepreneurship, In 2016, the “Discover the Power in Yourself” communication skills, financial The program includes mentoring, personal program started and was attended by 180 legislation, digital and mobile leadership training and communication women employees from our sales function. technologies and marketing in 20 sessions. In the program, 35 women provinces.

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We believe that for the sustainable growth Training Centres, women continued to deliver category of “Projects for Women and Against of our country, a strong society and strong their products to consumers through the Gender Discrimination” of the Felis Awards generations to come, women should have “oncekadin.gov.tr” digital store. Since 2015, in 2017 with the positive effect it created in an equal stance in economic life. To this a total of 2,706 products have been sold, society. end, we aim to increase participation in the amounting to TRY 207,581, with a total of working life and entrepreneurial capacity 31,421 product entries on the site where Technology and entrepreneurship trainings by introducing women to the possibilities there are 8,256 trainees are members. The have been designed as e-learning modules offered by communication technologies total economic value of all the products is in order to reach women registered in all the in the “Women First in Entrepreneurship” over TRY 42 million and they were viewed 1 Public Education Centres in Turkey and are project, which we launched in April 2015. The million 309 thousand times during the digital aimed to be opened for access by 2018. target of the project is to facilitate the sale store running period. Contrary to last year, of hand-made, eye-catching products with Stakeholder Opinion innovations brought forth by information and communication technologies. By ASUMAN KANCA encouraging much of the work that begins Women First in Entrepreneurship, as a hobby to become an income-generating Trainee activity, we aim to encourage unemployed women to participate in economic life and enable them to gain additional income that will increase the welfare of their families. The target population of the project are student / trainee women who have been trained in public education centres and advanced technical schools for girls.

Last year, 10,000 women from , Ankara, Izmir, Antalya, , Eskisehir, “The Women First in Entrepreneurship Samsun, Diyarbakır, Elazıg and Giresun were Women First Movement in Entrepreneurship Project that was introduced to me trained in technology and entrepreneurship. Competition was organised for 250 women in the stylist course that I started as As a result of the entrepreneurship who applied to the program with the aim of a hobby. My entrepreneurial story competition held as part of the project, the promoting entrepreneurship culture among turned into a story of success. My total start-up capital of TRY 26,500 has been women, and an online public vote was held designs meet buyers at the digital awarded to successful women who have won to promote all the participants in the project store. I became a professional with the the competition. and to support their digital skills. As a result Project and developed a sustainable of the 45,151 votes collected in the public source of income. I created my brand This year, as a result of training given to vote, entrepreneurship contest and public with the name ‘Fashion with Asu’, 12,339 women by 140 trainers in Adana, vote winners were awarded with a total of TRY and I participate in competitions and Kayseri, Denizli, Trabzon, Gaziantep, Erzincan, 53,500. The Women First Entrepreneurship fashion shows with my brand. I’m so Mersin, Mugla, Kocaeli, and Sivas Public Project was deemed worthy of success in the happy. I say, ‘here I am!’ ”

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Success As part of the “First Woman in Entrepreneurship Project” I entered 162 ads with leather bag products and sold Story 119 products amounting to a sales revenue of TRY 36,000.

ENHAR DOĞAN in Entrepreneurship” Project in March Denizli Pamukkale Public Education Centre 2017. I attended the training given by my Trainee and Finalist in the Women First counsellor and I entered www.oncekadin. Entrepreneurship Competition gov.tr . My orders and customers increased as we uploaded my bags to the site. I now receive orders from all over Turkey. I used to chase new customers, now I am having a hard time to keeping up with new orders. My aim had been to receive the big award since the beginning, but I still cannot describe my happiness and excitement the moment I learned that I was in the finals. I got one- step closer to my goal that day. If I win a prize from the “Women in Entrepreneurship” competition organised as part of the Project, I would like to spend it on my children’s education and support my husband. Most I lost my father at a young age, and when of all, I want to take a strong and firm step I shared with my teacher that I could not forward towards work life and establish a continue my studies because of financial had a kidney failure. When my husband got workshop based on my experiences. I want difficulties, he supported me and thus sick and was unable to work, I became the to show everyone that there is nothing I finished high school. Following this, I source of financial income and particularly, that women cannot do in this workshop attended the Department of Business at moral support for my family. That is how of dreams. My biggest dream is to be able Selcuk University. Despite many difficulties, I started making leather bags. At first, to provide jobs for other women in my I graduated from college, got married and my friends ordered bags to support me. I workshop. I want to offer my endless thanks had two children. My daughter is now a made bags only for them. I liked the bags I to the “Women First in Entrepreneurship” senior student at medical school and my made, but my sales were limited in Denizli. Project, Vodafone Turkey and everybody son is a first year student in Automotive I heard about the “Women First Movement who supported me and held my hand during Engineering. Two years ago, my husband the way.

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Women First Stores With the “Road Companion” feature added can answer with one key. At the same time, to the Early Rescue application, users can when the user feels nervous, he or she As Vodafone Turkey, we are constantly view their route on the map by selecting the can let the follower know with the “I am expanding the scope of our “Women First” most appropriate route among the routes feeling nervous” button. In unexpected risky program. With this target, as of November automatically drawn by the application on situations, the user can call the police with a 2017, the investor and all of the employees the map and can share it with their selected single “Call Police” button in the application. of the women’s stores, including Tekirdag, people so that other people can see where The aim of this application is for women Ankara, Nevşehir, Niğde, Batman, Şanlıurfa, they are located at any time. to have a feeling of safety rather than fear Adana, Sinop, Niğde, Adıyaman, Ardahan while traveling. and Iğdır aim to encourage women’s participation in the economy and labour and The Vodafone Early Rescue campaign was offer them new employment opportunities. awarded with the most prestigious award of the Cannes Lions International Creativity Early Rescue Festival, recognised as the summit of creativity around the world, the Grand Prix in the field of advertising and marketing, We believe that the increasing violence which was given to a Turkish firm for the against women in our country is a serious first time. Vodafone Early Rescue won the human rights violation and a serious social Grand Prize for the first time in Turkey at problem. Mobile technologies have a vital the CLIO Awards, which was recognised role to play in the fight against violence as another summit in the advertising and towards women. For this purpose, we marketing world after the success of Cannes launched the “Early Rescue” application. Lions. Following the success we achieved The application allows women exposed in Cannes and CLIO, we were nominated for to violence to have immediate and simple the Grand Prix at the Global Mobile Awards, access to the law enforcement agencies or known as the Oscars of the GSM industry, relatives by phone and send emergency text where awards are given by the World GSM messages. Association (GSMA). During journeys using the Road Companion In addition, Alo 183, 155 Police Emergency, feature, when the user detours from the Ambulance and Gendarmerie emergency First6Years Mobile Application current route, the followers of that journey numbers can be called with a single are automatically informed regardless of key. The application, which reached 299 We offer up-to-date information on the first the fact whether they have the application thousand downloads, includes information six years of a child’s life, which represent the or not, as the priority is the user’s safety. on the addresses of the nearest Violence most critical period in a child’s life, through The follower can ask any user whether he Prevention and Monitoring Centre of the the application developed by Vodafone or she is okay with a single key, and with Ministry of Family and Social Policies, the Turkey Foundation and AÇEV, making life the notification on the screen, the user organisations to which they can get help easier for parents. The free application from, and the rights they have.

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guides parents with an information database Our aim is to increase the Stakeholder Opinion of 1,200 different questions. Information application’s total number of sent to the user’s smartphone every AYŞEN ÖZYEĞIN other day is supported with photographs, downloads to 1 million and Chairwoman of AÇEV educational videos and animations. total number of active users to (Mother Child Education Foundation) Reaching 220,000 users, the application 200,000. also includes a calendar to record important days for parents and children, a section to monitor children’s height and weight, and an album to store and share photos and videos. The application will be updated with user experience kept in mind by December 2017 and will include numerous child development additions:

• Features for the needs of new mothers (ability to create new screens and How would you assess the role of download information regarding breast- the telecommunications industry feeding times, nutritional supplements in sustainable development of both and infant sleep length) will be included Turkey and the region? in the application. The telecommunications industry has • Information regarding the child’s health a very important role due to increased (blood type, vaccinations, allergies, access to information technologies medication use) can be recorded and and the ability to offer equal access shared. to information for each individual in today’s world. A significant gap in • There will be a separate section with equality of opportunity is being closed content specific to fathers including PLEASE SCAN as people living in disadvantaged information, suggestions and hints to THE QR CODE TO areas can access education improve mother-father and father-child DOWNLOAD THE APPLICATION opportunities with internet access and relationships. By doing so, it will be mobile applications. Development possible to emphasise the importance cannot be sustainable in a society of fathers for child development, where equality of opportunity improve the father-child communication cannot be maintained in accessing in a healthy manner, support fatherhood information and education. As the skills and inform fathers correctly about Mother Child child development.

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Education Foundation (AÇEV), we a leading role in gender equality on activities. In recent years, we are believe that every child deserves an international platforms. also increasing our ability to utilise equal start in life and we develop opportunities made available by and implement training programs Can you inform us on AÇEV’s information technologies in our based on scientific knowledge for point of view and vision towards activities in an accelerating manner. In children, parents and young women sustainability as an institution? this context, we aim to create equality who need them it around the country. of opportunity towards access to When we take a look at the issue As AÇEV, we are working with all our information with the “First6Years” from this perspective and especially might to increase society’s quality mobile application we developed in assess the industry’s role in line with of life in terms of education and partnership with the Vodafone Turkey our own mission, we believe that Foundation. Along with rapid increase just like its role in other areas, the of smart phone and tablet usage with telecommunications industry’s role is widened access to internet in our very important and valuable when it country, our aim is to inform families comes to disadvantageous people’s on child development and parental access to education and families and skills using these technological tools. children having equal opportunities. “First6Years” mobile application reached thousands of people and How would you assess its number of followers is increasing Vodafone Turkey in terms of its every day. We also take pride in the sustainability? What are the issues requests from other countries for this Vodafone Turkey leads in when it application. Our aim in the upcoming comes to sustainability from your period is to raise the prevalence and AÇEV’s point of view? and efficiency of our programs and activities through internet and mobile Vodafone Turkey is an institution that communications. leads our country’s transformation into the digital age. With “Digital Transformation”, Vodafone Turkey supporting social development paves the way for the education of with our wide reaching education preschool children, involvement of programs. Quality education in women in social and economic life preschool years, families’ role in and embracing diversity. On the other development of future generations, hand, complementing its activities gender equality and lifelong in gender equality with its support learning; subjects that are important of the HeForShe campaign that focal points of the United Nations invites men to act as gender equality Sustainable Development Goals, promoters, Vodafone Turkey also has also form the origin point of AÇEV’s

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Women Customers advantages. With “Vodafone Golden Club”, service providers. Golden Tariffs also provide we ease the lives of housewives who take women free minutes with their loved ones Computer usage ratios in Turkey* up many roles such as mothers, wives, using Vodafone between 12:00-16:00 brides, businesswomen and daughters hours during the day while allowing free with the power of mobile communication mobile internet services for social media. Male Female technology while empowering our women In addition, we offer “Vodafone Golden through special prices and services in line Club” member access for women to our with our “Women First” vision. information services such as women and children’s health while offering special 64.1% 45.9% discounts and advantages for their favourite products and stores.

Internet usage ratios in Turkey*

Male Female

70.5% 51.9%

4http://www.tuik.gov.tr/PreHaberBultenleri.do?id=21779

This issue is especially important to us With this vision, we collaborated with as Women’s Empowerment and women’s Turkey’s largest supermarket chain to access to digital technologies are among make our products more accessible for the three main targets of our sustainable women, making communication cheaper business strategy. For housewives, we offer a and accessible for all women. Golden Tariffs special “Vodafone Golden Club” programme that were designed towards the insights that incorporates special communication and needs of women include advantageous and non-communicational offers and mobile internet options apart from minutes and SMS, which can be used between all

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In fiscal year 2016/17, we saved 1.35 million kWh in total with our ISO 50001 studies. We used 66 wind turbines. We provided services with 9 base stations using that use only renewable energy in.

We care about energy for the future.

We give priority to increasing technologies. In parallel with our the energy efficiency of our strategy to reduce our energy customers, thereby creating consumption, we are investing opportunities for them to in more effcient technologies, reduce their greenhouse gas renewable energy and take emissions and to minimize the precautions for our buildings, environmental impacts from vehicles and air conditioning our own operations by means systems. of our telecommunication

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Energy Innovation

There is clear evidence that global Our Energy Consumption and temperatures are rising quickly. There is also Greenhouse Gas Emissions a very strong consensus among scientists and policymakers that carbon dioxide Base stations and data centres consume emissions from fossil fuels such as coal, oil 80% and 14% of our energy consumption and gas – together with other greenhouse respectively. Thus, investments in more gases (GHGs) – are having a direct impact efficient technologies and renewable on the climate. Creating the opportunities energy for our base stations and data for our customers to increase their energy centres take the lion’s share among the efficiency and reduce their greenhouse gas activities to reduce our energy consumption emissions through our telecommunication and greenhouse gas emissions. In addition services and minimising the impact on the to these, we take several precautions and environment through our own operations, invest in new technologies for our other are among our most material topics. energy consumption and greenhouse gas emission sources: buildings, vehicle fleet As Vodafone Turkey, most of our energy and air conditioning systems. consumption is a result of electricity consumption for our base stations. Although We reduced our Scope 1 and 2 greenhouse we cover most of our electricity needs from gas emissions by 1% in the 2016/17 fiscal the grid, our aim is to increase the amount year. We were able to limit the increase of solar and wind power in our operations of energy consumption to a lower level and reduce our grid consumption. while the volume of data carried on our networks increased exponentially with the roll-out of 4.5G and other new generation technologies. Detailed tables regarding energy consumption and greenhouse gas emissions can be found in the “Reporting Principles” section of this report.

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ISO 50001 Our ISO 50001 activities include Stakeholder Opinion 1.35 the identification of inefficient air At Vodafone million kWh conditioners, heating settings for İPEK SELEK Turkey, acting in saved increased efficiency from equipment, Vodafone Technology Quality & accordance with air conditioner location optimisation Service Assurance Director and ISO our passion for and replacement of old inefficient air 50001 Program Leader the environment, we develop projects that conditioning systems (Dynamic Thermal are based on energy efficiency in all our Management). business processes. By doing so, we aim to create comprehensive environmental awareness and achieve the highest possible energy efficiency. With our ISO 50001 Energy Management System, we are conducting projects that achieve energy efficiency, provide for clear, measurable environmental improvements and carry the flag of change during the transition to a lower carbon economy for the continuity of “Energy performance management our operations. through ISO 50001 optimises energy use for institutions by creating Our ISO 50001 activities cover the Izmir energy consumption awareness. Data and Switching Site, Esenyurt Data As a result, we achieve reductions Centre, Tuzla Data Centre, Adana and Ankara in energy consumption, costs and Technology Centres. As a next step, we aim related greenhouse gas emissions. to include 4,261 base stations in 12 cities This means a positive impact for both and our Cyprus Telsim (VMOL) Switching the institution and the environment and Data Site in our ISO 50001 Energy in a system where all parties win. The Management System. importance of the process begins As part of these operations; with institutions reviewing their status. During this process, it becomes • Through our Technology Centres & Data possible to understand how and Systems Management team’s ISO 50001 where the institutions use most of studies, we saved a total of 1.35 million their energy resources and where their kWh in the 2016/17 fiscal year in our energy gaps are. Improvements are Esenyurt and Gaziemir Technology implemented with a systematic plan Centres. that focuses on these areas making sure energy consumption is better managed thus reduced. By doing

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so, the importance of the process Scott Campbell, Associate becomes apparent when transitioning Professor & Director of Urban Planning to the ISO 50001 Energy Management Doctorate Program of Michigan System. University’s College of Architecture has an admirable definition: “Sustainability We see the importance of studies in is a system’s ability to reproduce energy management and efficiency itself over time.” Setting off with more and more every day, especially this definition in mind, we need to in our country. We aim to become make sure systems at least produce the leading institution when it comes enough energy to cover their own to the efficient use of energy and consumption. We should also use increasing environmental awareness, our geographic advantage to its full acting with our passion towards the We donated to the TEMA Foundation environment and our activities that define the path for our sector. approximately 12.07 tons of waste paper

We began our activities prioritising Saving 28,515 trees an increase in awareness within our organisation by creating a portal by avoiding the need for where our colleagues could share 1.67 million tons of paper their ideas on increasing energy consumption efficiency. We set up with our waste bills and an Energy Management team to electronic billing applications. execute the ideas shared in the portal. We developed digital transformation projects to minimise written/printed paper usage and developed a policy towards choosing the least energy potential to minimise our foreign consuming equipment for energy dependence on energy and should saving in our buildings. As part of the fully benefit from the resources nature most important result from our work, provides us with such as solar, wind we obtained ISO 50001 certificates and water energy. We need to develop for our main technology centres. We and utilise hybrid systems that can achieved important energy savings use different energy sources together with our work that was in line with this and always remember that our main management system. focus is nature and environmental awareness when we are talking about sustainability.”

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Base Stations OBJECTIVES FOR THE We are continuing to implement our 2017/18 FISCAL YEAR “Green Technology” and “Red Loves Green” OUR COMMITMENTS programs started in 2009 to increase energy • To ensure the use of M2M solutions for efficiency and reduce greenhouse gases in We will continue to expand base station remote control of DC energy units in at our base stations where most of our energy applications that enable higher energy least 800 sites. requirements come from. efficiency and use renewable energy. • To increase the number of sites utilising During the 2016/17 fiscal year, we OBJECTIVES FOR THE renewable energy by closely monitoring continued to implement high-tech 2016/17 FISCAL YEAR renewable energy technologies. applications with considerable energy efficiency at our base stations. A significant • To ensure the use of M2M solutions for portion of the energy is consumed by air remote control of DC energy units in at conditioning equipment in the heating and least 500 sites. cooling systems of base stations. To reduce the amount of energy consumed by the air • To increase the use of renewable energy conditioning equipment and make them on site. more efficient, we replaced 385 legacy air conditioners with new generation models. OUR PERFORMANCE IN THE In existing sites, we launched 434 natural 2016/17 FISCAL YEAR ventilation systems, thus saving energy from air-conditioning usage. In addition, we • We have implemented M2M solutions replaced old communication equipment developed for remote control of energy with new generation ones in 2,062 base units in 1,370 sites. While the number stations. We are continuing to provide of sites that use 100% renewable uninterrupted communication for our energy (not attached to the power customers by reducing energy consumption grid) continued to be nine, we started in 76% of our network. In addition, we have to power the signal repeater in 1 of our also reduced our energy consumption by locations from 100% renewable sources. NEW COMMITMENT sharing base stations with other operators. We saved energy and space by sharing 421 • 66 wind turbines continued to support • To start the process of complying with base stations with other operators in the the energy backup systems at our base the ISO 50001 Energy Management 2016/17 fiscal year. stations. System standard in our base stations to keep our energy consumption In the 2016/17 fiscal year we both provided under control and manage our energy uninterrupted communication for our consumption in the 2017/18 fiscal year. customers and used green technology via nine base station sites that use 100% renewable energy (that are not connected to the grid). Moreover, for the first time,

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we created a wider and greener coverage focussing our efforts towards establishing area for our customers by using our signal This large reduction performance becomes a sustainable infrastructure. We aim to repeater equipment that gets its entire possible by adopting energy efficient continue this reduction by using more energy requirement from renewable equipment in infrastructure, utilising new efficient equipment and renewable energy sources. generation systems in air conditioning resources in the upcoming periods. solutions and modernisation of old and We have continued to use 66 wind turbines inefficient equipment. We achieve savings to meet our partial energy demand at in energy consumption and keep our Energy consumed per total amount of appropriate base stations and reduced greenhouse gas emissions under control by data carried in Vodafone network since our dependency on grid electricity. We are 2011/12 fiscal year aiming to increase green technology usage (Gigajoules/Petabytes)* in our base stations by closely following the technological developments in renewable energy. 106,700 100,000

90,000 Within the scope of our energy control 80,000 and management practices, we have 76,700 70,000 continued to benefit from M2M solutions 60,000 at base stations. In the 2016/17 fiscal year, we integrated M2M technologies to 50,000 48,300 more than 1,350 sites for remote control 40,000 30,000 of generator and energy backup systems. 20,500 This technology makes it possible for us to 20,000 9,400 make remote field assessments, monitor 10,000 4,800 the temperatures on site and provide optimum cooling in accordance with the 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 ambient temperature, monitoring and We have managed a sizeable * The data use numbers given in the graph are reported to Vodafone control of energy backup units to use Group and Vodafone Group calculation and reporting procedures energy efficiently and provide uninterrupted are followed. service for our customers. In addition, it also increases the operational efficiency 48% as it eliminates the requirement of being reduction physically present on site. We will continue to increase the integration of M2M solutions and benefit from the contribution of technology towards sustainability. in per petabyte energy consumption in the 2016/17 fiscal year compared to the 2015/16 fiscal year.

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We have achieved a significant reduction OUR PERFORMANCE IN THE OBJECTIVES FOR THE in energy consumed per total volume 2016/17 FISCAL YEAR 2017/18 FISCAL YEAR of data carried in our networks since the 2011/2012 fiscal year as can be observed in We have increased the COP values (electricity • To replace existing air conditioners and the graph below. The volume of data carried efficiency) of the VRF air conditioning air conditioning stations with higher on Vodafone Turkey network increased equipment from 2.72 to 3.83 during the COP equipment on the 8th floor of our 30 times between the 2011/2012 and renovation of meeting rooms and other Headquarters. To increase indoor air 2016/17 fiscal years, while we were able to social spaces (gym, market, hairdresser, quality and reduce electricity by 7% by limit the increase in energy consumption etc.) on our Headquarters’ restaurant floor. changing our air conditioning stations in the same period to just 60%. While Though we previously met our heating with DX battery equipment. meeting the continuously increasing demand through high electricity consuming data needs of our customers with the NEW COMMITMENT subsequent introductions of 2G, 3G, and 4.5G technologies, we constantly control • To renew the TÜV Energy-Efficient and manage the energy consumption levels Data Centre certificate for our Esenyurt at our base stations. Technology Centre.

• To obtain ISO 50001 certification for Technology Centres & Office 5 more of our technology centres by Buildings making our energy efficient applications and controls in line with the ISO 50001 processes. OUR COMMITMENTS Among our practices for improving energy We will continue to implement projects, efficiency in switching and data sites, which reduce our carbon footprint in our which altogether cover 14% of our energy buildings. consumption, we are also replacing DC power supplies with high-efficiency ones, replacing OBJECTIVES FOR THE air conditioners, we have started utilising old generation air conditioners with new 2016/17 FISCAL YEAR natural gas as a more efficient source. By generation high efficiency ones and ensuring doing so, we benefitted from natural gas’ cooling optimisation through technical 40% reduction of hourly electricity heating efficiency and increased our heating analysis. consumption on the floor hosting the COP value. For cooling, we started to use roof restaurant and other social areas at the installations and the COP level has increased In the 2016/17 fiscal year, we managed the Headquarters through mechanical devices from 2.72 to 4.03. By implementing these cooling infrastructure controls in our three and lighting fixtures. improvements, we have reduced energy big technology centres in İstanbul and Ankara consumption on the restaurant floor of our by integrating the smart dynamic thermal Headquarters. management system and therefore achieved

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electricity savings of 756,000 kWh. Through building. These units increase indoor air We manage our vehicle fleet with an the dynamic thermal management system, quality and support cooling as well as environmentally friendly approach by we increase our operational security in heating in relevant periods by conditioning implementing vehicle tracking systems and addition to saving energy. We are planning the outdoor air. Doing so allows for providing training on fuel-efficient driving. to save another 4 million kWh of energy in electricity consumption reductions by the 2017/18 fiscal year by implementing our supporting existing climate control systems As a result of these activities, in the integration operations to five of our other during summer and winter periods and 2016/17 fiscal year, we managed to technology centres including Izmir and also increases the indoor air quality during reduce the energy consumption of Adana. climate transition periods by utilising only our fleet by the DX systems. Apart from this, we support We are replacing old generation DC power 1% supplies and cooling units with new despite a generation efficient units. By materialising these two investments, we achieved energy 2% savings of 600,000 kWh in the fiscal year. We plan to continue investing in DC and increase in the number of vehicles. uninterruptable power supplies and cooling systems to achieve energy savings of With waste production as well as natural 740,000 kWh in the upcoming period. resource consumption reduction targets in all areas of our operations, we support In addition to all the studies laid out above, activities to reduce our impact on the we received ISO 50001 Energy Management environment. We adopt the “Waste System certificates for our two large Management System Procedure” as technology centres in İstanbul and İzmir, part of managing waste occurring from which assure that energy management is our operations and take great care for carried out efficiently and correctly in our the minimisation, separate collection, technology centres. We plan to increase our intermediate storage, obtaining advisory ISO 50001 certification coverage to include services for identifying transfer points when three further major technology centres in heating with the condensing natural gas necessary, transportation, recycling and Istanbul, Ankara and Adana in the upcoming cascade system. We not only save energy disposal of waste in line with the legislation period. but also utilise daylight to its full potential by monitoring and controlling these with dimming LED fixtures on all floors. processes. Apart from this, we continue our Office Buildings and Other We use waterless urinals or light sensors procedures of achieving paper savings by Environmental Applications and only choose plants that can grow electronic billing and recycling waste paper. with rainwater for the building and only In the 2016/17 fiscal year, we used DX Air use n plants that do not require watering We use paper, plastics, glass, domestic and Handling Units that are not used in any in the cafeteria area to reduce our water metal packaging waste collection bins in other building other than our Kucukyali consumption. order to collect waste separately. We

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implement raising awareness and incentive Percentage of our network-based campaigns for our employees to achieve waste is recycled by licenced recycling further reduction, separate collection and companies recycling of waste.

We have prevented the cutting down of an estimated 136 trees by recycling approximately 8 tons of paper waste 99% through our waste management activities in the 2016/17 fiscal year. By doing so, we have managed to save an estimated 11,696 trees by collecting and recycling 688 tons Numbers of waste materials from of paper waste in our buildings over the last network operations have been 9 years. collected within the scope of our waste management system In addition, by recycling plastic waste packaging by putting recycling bins in place 2016/17 fiscal year over the July 2008 – March 2017 period, we achieved energy savings equal to the daily energy requirement of an estimated 43,661 1,455 buildings. TONS We replace the equipment in our base stations with technologically advanced, more energy efficient ones following the advancements in telecommunication 10-year period technologies and technological requirements. Our priority as part of this transformation is to allow the reuse of the 10,573 equipment where possible in different technical infrastructure systems as well as TONS reducing resource consumption. Where this is not possible, we manage their recycling in compliance with legislations and international guidelines.

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PLEASE SCAN THE QR CODE TO WATCH THE SMART VILLAGE AERIAL FOOTAGE.

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Smart Village In our first production trial We also showcase our IoT technologies for melons, we achieved that increase efficiency and savings in our We are transforming rural life along with Vodafone Smart Village project. Water people, cities and institutions in line with a 150% increase in represents one of the most important our vision to lead digital transformation in efficiency by implementing resources in both personal and industrial Turkey. Vodafone Farmer’s Club founded environmentally friendly agriculture. With our Agricultural IoT solutions, we enable automatic irrigation by utilising soil with this vision in partnership with TABİT agricultural technologies. under the the Ministry of Agriculture and moisture, current weather information and Livestock, has reached 1 million members. calculating plant needs. With more efficient With the platform, which was extended to water use, we prevent excessive water waste 6 more countries following the success of apart from product needs and unnecessary Vodafone Turkey, we share location-based fuel consumption of motors used in water information (weather alerts, incentive news, distribution. We are planning to extend these exchange prices etc.) to help farmers. agricultural technologies and Agricultural IoT products that are tested in Vodafone In 2016, to further carry our initiative step Smart Village to our Farmer Solution Partner further, we started the Vodafone Smart channel which we will establish by going Village project with TABİT in the Kasaplar directly to farmers in villages. Village in the Koçarlı region of the city of Aydın. In the Vodafone Smart Village, We aim to add a TRY 15 billion we develop models based on agricultural value to Turkey’s agricultural technology trials that will increase farmers’ incomes. Our vision with the Vodafone economy Smart Village project is to extend these accessible technologies to 642,000 farmers Another important aspect of our Smart in 5 years throughout Turkey in waves with Village project is social development. We successful and sustainable business models. support social development of women and While increasing the economic value of children with this project: agriculture with accessible technologies by 20% In agricultural costs • We established the Women Technology including family farmers who are working by reduction their own means, we also share the target Training Centre together with the Vodafone Turkey Foundation in the of incentivising agriculture as an attractive and high income potential job alternative for Smart Village. With this centre, we aim to young generations in Turkey. increase the technological literacy of all women in the village. 10% in production increase • We started the “Women Farmer Entrepreneurship Project”. Through this project, we aim to empower women

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• economically by allowing them to Energy Efficiency Solutions and vehicle tracking systems, waste raise their own produce with the aid for our Customers management systems, navigation systems of available technologies. Within the and mobility managements, we help our scope of the project, 10 women farmers customers and business partners to reduce As Vodafone Turkey, we provide IoT (Internet who received entrepreneurship and water, gas, electricity and fuel consumption of Things) solutions and services for many greenhouse trainings procured 30 and therefore enable improvements on sectors from financial services to healthcare, thousand heads of lettuce and received greenhouse gas emissions. agriculture to urban development and from additional income of approximately TRY manufacturing to energy. Thanks to our 25,000 in total. solutions, we can constantly monitor things in real-time, pursue, manage corporations’ More than 65% of our IoT • We also plan to give coding training to the children in the village within the (Internet of Things) product scope of our “Coding Tomorrow” project. range supports mitigation These children will be able to write their measures to reduce own codes for agricultural technologies greenhouse gas emissions. in the future.

Stakeholder Opinion Fields of Practice of our • IoT Solutions HÜSEYIN KÖMÜRCÜLER Farmer Energy

• Remote, real-time collection and analysis of electricity, natural gas and water meter readings makes it possible for energy providers, businesses and municipalities to optimise power generation and consumption, enabling business processes and crate savings. As the follow-up on lost and stolen energy. energy has a direct impact on time, people, “I received 50% less efficiency due inventory and sustainability, they are among Ranging from houses to companies, to not having the infrastructure last • the main resources being saved as a result electricity and gas consumption can be year. However, this year I tracked my of our services. reduced by between 3 to 15%. crops with Vodafone Smart Village and achieved success even in the July- Through our IoT products and services, August heat. The ones who used to call such as smart meter reading, energy me crazy and consider Smart Village a management and optimisation, fleet pipe dream are now congratulating me on my success.”

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Health the density and circulation of people and mobile applications interact with fans. in buildings during the day to achieve In Vodafone Park, data and telecom rooms • Thanks to the Vodafone Chronic Disease the targeted indoor temperature, were installed to feed the entire smart IoT solution, physicians can monitor illumination according to daylight stadium infrastructure. The stadium has their patients in real time while at home, level, and real time management of high-bandwidth Wi-Fi, 2G, 3G and 4.5G and when health problems and risky these factors whenever necessary. network connections to meet the needs situations arise, health departments Thus, we convert the buildings into of 50,000 visitors. Fans are able to follow can get in contact with patients. Thanks environmentally friendly structures, important positions and match statistics to this technology, the intervention which manage their own energy on more than 700 interactive screens and period is shortened, the unnecessary consumption well. more than 2,200 in-seat screens that are vehicle use between hospital and house located in different locations and managed has been minimised and therefore the from a single centre. The Vodafone Park resulting greenhouse gas emissions are application, which interacts with the fans, prevented. is designed to perfect the smart stadium experience. • Support to diabetes patients of Memorial with IoT Technology Thanks to the highly efficient energy and cooling systems preferred in the With Vodafone Turkey IoT technology, stadium’s system rooms, the implemented Memorial can observe diabetes patients infrastructure can potentially save about at any time thanks to an IoT device and 2 million kWh in energy consumption comprehensive IoT mobile connection. annually compared to its counterparts. As a result, patients are under control In this regard, we prevent about 1,100 at all times without needing to visit tons of greenhouse gas emissions the hospital to be checked therefore annually. This amount equates to the by minimising unnecessary hospital total annual electricity consumption of to home travel, fuel consumption is approximately 1,000 households and to reduced. the total greenhouse gas emissions from VODAFONE PARK approximately 740 households. Smart Buildings Unlike many other stadiums, the smart • Today, ventilation, lighting and stadium infrastructure in Vodafone Park, heating systems are the most energy the First Smart Stadium in Turkey, has been consuming components in buildings. architecturally designed to be a smart Vodafone IoT technology enables project since the very first day. One of the ventilation to function according to most important features of Vodafone Park’s Smart Stadium is that the broadcast system

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Stakeholder Opinion • Improve production quality and Industry 4.0 and IoT technologies more and production volume with automatic and start the necessary investments in order to BERNA KULAKSIZ artificial intelligence algorithms, move Industry 4.0 applications forward. With Vodafone Corporate Solutions these investments, the national economy Director • Improve production ecosystems and will be contributed to in accordance with processes where producers, suppliers the productivity increase in production. and other stakeholders are becoming more optimised, How do you evaluate the ICT sector and Vodafone Turkey’s role in digital convergence and industry 4.0 applications?

The ICT sector should support all business areas with innovative solutions and practices in transformation, and advise companies Can you tell us about the global to implement the right transformation importance of IoT and the level strategies. Every new solution offered by of implementation in Turkey the ICT sector has an important effect for Digital Transformation and in reducing costs, improving business Industry 4.0 applications? processes and increasing mobility and flexibility in all business areas. IoT is not a step in the digital conversion process but a driving As Vodafone Turkey, we have taken the lead force. By 2025, the economic impact role in the digital transformation of large, of the IoT is expected to exceed $ medium and small businesses and cities: 10 trillion, amounting to more than 10% of the global economy, and to • For this, we measure the digital index have an impact overall economy by of firms at all scales, we extract the the 2030’s. The world of connected • Decrease the margin of error while conversion materials they need; thus we devices is expected to reach 200 increasing income and profitability with provide conversion consulting. billion units in 2020. Developed real-time audit and intervention. industrial countries are investing • We integrate our services with the hundreds of billions of dollars, In Turkey, IoT is more mature in the fields of solutions identified by our business focusing more on Industry 4.0 each automotive, energy, logistics and finance, partners and provide end-to-end year. With the investments made, it and it is increasing in agriculture and solutions to our customers. is aimed to implement Industry 4.0 urbanisation procedures. In our country, standards and methods correctly to; it is necessary for manufacturers to adopt

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Could you tell us about Vodafone Turkey’s agriculture and automotive, and we have Smart Cities prominent work in the context of IoT continued our activities as a pioneer in applications? these fields for the last 5 years. With the The digital population in our country is Automatic Meter Reading Solution, we increasing day by day as it is around the We have products and solutions specified for reduce manual meter reading costs. With world. We live in a time when it is necessary each sector and we offer these for the benefit our waste management solutions in Smart to digitise public services at the same pace of our customers. We have a broad portfolio of City Planning, we improve waste collection as the digitalisation of the population. As products ranging from smart vehicle products processes and consume less fuel and part of our smart city solutions, developed to energy management solutions, payment indirectly reduce greenhouse gas emissions. in line with this need, we offer solutions tracking solutions, agriculture, healthcare and With our Vehicle Telematics Solutions, we are ranging from buses to vending machines, urban solutions. Our IoT connectivity service helping to conserve less fuel by controlling elevators to building lighting and ventilation can tailor our service to all business needs and systems, municipal applications to security we can offer the same service abroad. For the systems. In parallel with these solutions, first time in Turkey and in the Vodafone Group, we announced the “Smart City Road Map” we invested in the IoT Platform to develop IoT report, which can be used by municipalities services. In this way we will be able to rapidly working towards smart cities in Turkey as of develop innovative services along with our 1 December 2016 in order to increase public solution partners and introduce them to the satisfaction and contribute to creating market. We are proud of our usage-based sustainable cities. insurance specific for the insurance sector, chronic illness follow-up for the health sector, It is foreseen in the report prepared with smart vehicles exclusive to the automotive the participation of 23 metropolitan sector and energy management solutions for municipalities in Turkey that if smart city the energy sector. We are the first operator in programs are designed on a country wide Turkey to undertake and develop an Industry basis and implemented in a holistic manner 4.0 project. As the operator providing the first that they will contribute to Turkey’s GDP by Narrow Band IoT connection service in Turkey, instantaneous fuel consumption and driver about 30 billion TL annually. As part of the we made available this innovation in Turkey behaviour, contributing to sustainability first stage, “Smart City Road Map”, the target for all uses. in different areas. Every contribution to is to select 30 metropolitan municipalities sustainability is a contribution to the and turn them into smart cities. According Are there any issues that Vodafone Turkey development of the national economy, the to the report, 20% in energy savings will has pioneered in the field of sustainability business world and our society. Costs are be achieved in the country if this goal is in your view? How do they contribute reduced with more efficient use of resources achieved. With smart traffic applications, if to the business community and the so the business world can have more an average of 100 minutes per day spent on development of the community? resources for investment. In this regard, more traffic is avoided, an average of 104 million employment opportunities are provided. As hours a year can be saved in a city with a As Vodafone Turkey, we make a significant society sees this opportunity, the acceptance population of more than 10 million people. contributions to sustainability in the fields of solutions increases and sustainability In addition, with smart intersection of energy, intelligent urbanism, healthcare, extends to all processes.

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applications, an average energy reduction of NARROW BAND OBJECTS INTERNET EXAMPLES OF SOLUTIONS WE OFFER 45% per day can be achieved at intersection (NBIOT) FOR SMART CITIES stops. • We launched the Narrow Band Objects • Thanks to Vodafone IoT’s intelligent The report on Turkey also includes the Internet (NBIoT) technology for the intersection solutions, traffic light results of the Digitalisation Index developed first time in Turkey and as Vodafone signs are managed in real time, lights by Vodafone. The “Smart City Index” study Turkey the second among the at intersections are instantly changed put together by Vodafone with the support Vodafone Group network. With NBIoT according to vehicle intensity, thus of the Ministry of Development with 26 technology, which was first introduced avoiding unnecessary stopping and metropolitan municipalities throughout and experienced with at the Vodafone idling of vehicles and reducing fuel Turkey shows that the average digitalisation consumption by an average of 6%. score of the metropolitan municipalities was 55%. The municipalities have scored 52% in • Thanks to Vodafone IoT technology’s Digital Services, 49% in Digital Operations Intelligent Waste Management solutions, and 59% in Digital Technology Platforms. the occupancy rate of waste containers is instantly locally determined and the ITAKSI routes of waste collection vehicles are determined more effectively. This saves • The iTaksi brand which provides mobile fuel by up to 30%. payment, security and mobility facilities in Istanbul taxis gets support from • Thanks to Vodafone IoT technology’s Vodafone Turkey IoT technology. Smart Parking solutions, drivers can keep track of the occupancy rate of • Thanks to Vodafone IoT technology, taxi parking lots in real time and reserve location information can be detected them for use. In this respect, drivers and city dwellers can see the nearest both save time and save extra fuel free cabs on mobile application. The spent to search for empty car parks, fuel consumption is reduced by up to which prevents extra greenhouse gas 25% per taxi as the taxi is directed to the Digital Conversion Summit and later emissions. nearest customer. exemplified in smart parking solutions in various municipalities, objects can • Thanks to our IoT technologies; be served at a lower wireless power vehicles (taxis and municipal buses) level, contributing to the environment are monitored including their location, by lowering energy consumption with fuel consumption, idle usage, distance lower battery usage. used, driver behaviour, and measures can be taken to reduce greenhouse gas emissions.

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As of November 2017, we provided training to 4,558 children. We introduced robots to 715 children in hackathons.

PLEASE SCAN THE QR CODE TO WATCH THE We are Raising “CODING TOMORROW” Generations VIDEO. who Produce Technology

We are helping to develop our Children between the ages of children’s digital competencies 7-14 are being taught the 4 through coding and robotics basic values (imagine, design, training with our “Coding build, share) of the do-it-yourself Tomorrow” project we run with culture in the trainings given the Habitat Association since within the scope of the project. August 2016.

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Youth Skills and Employment

Unemployment and the lack of sufficient Our Employees participation in the labour force of young people shows itself with an unemployment OUR COMMITMENT rate exceeding 20% in our country, which is also a global problem and causes difficulties • We will continue the support of the for the future of the economy. For adults participation of individuals with high- who have completed their education potential in the Vodafone network and and entered the workforce, continuous the identification of our highly talented unemployment (or low quality - intermittent employees in our organisation and their jobs) can cause serious problems. preparation for leadership roles.

During the past decade, mobile • We will be an exemplary workplace communications and digital technologies which is “Sensitive to gender equality “. have begun to transform every aspect of the lives of hundreds of millions of people OBJECTIVES FOR THE at home and at work. But technological 2016/17 FISCAL YEAR developments can also lead to negative social consequences. In the coming • To employ 40 newly-graduates through years, robots and artificial intelligence the Discover Young Talent program in applications will lead to increased July 2016. automation in many sectors and will affect issues such as employment, skills and • Ensure that at least 50% of young salaries of employees. We, as Vodafone talents who participate in the Discover Turkey, are making efforts to increase the Young Talent program are female. skills and employment of young people with our investment and understanding as responsible employers.

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OBJECTIVES FOR THE Discover Young Talent Program we carry out our new recruitment of 2017/18 FISCAL YEAR young talent through the Discover Young As Vodafone Turkey, we find it highly Talent program, which Vodafone has been • To employ 40 newly-graduates through important for new graduates to make implementing in all countries on a global the Discover Young Talent program. career choices that will support their scale since 2008. professional development. We believe that • Ensure that at least 50% of young the right choices support the sustainable We adopt the Discover Young Talent talents who participate in the Discover development of both the company and program as a program aimed at expanding Young Talent program are female the employee. In line with this approach, Vodafone Turkey’s talent pool, as well as enabling young people with high potential IN THE 2016/17 FISCAL YEAR to gain access and benefit from local and global career opportunities at Vodafone, which can be supported with training and Discover Genç Yetenek Programı ile development programs.

46 new young talents joined the The program, which is open to university Vodafone family. students from all over Turkey, begins with a five-stage evaluation and selection process and offers a three-week orientation to The percentage of female young people who join the Vodafone family. young talents joining us in the 63% Through the Orientation program, the Discover Young Talent Program Discoverees gain a wide range of experience from being at different customer contact WITH THE ONGOING PROGRAM points from sales consultants at Vodafone SINCE 2008 stores to customer representatives at our call centre. The new graduates, who have performed two different rotations young people have joined the during the first year of the program, have young talents of Vodafone to 296 the opportunity to learn about different date. functions and business lines at Vodafone closely for about six months and learn more about the specialties of these business lines.

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Stakeholder Opinion Global Columbus Talent OBJECTIVES FOR THE Exchange Program 2016/17 FISCAL YEAR YUSUF TORLAK Discovery Participant Through the Global Columbus program, OUR COMMITMENT to help 2 Vodafone Turkey Discover participants gain global experience at We will continue to support the participation Vodafone companies in other countries and of potentially high-powered individuals in also host 2 Discover participants from other the Vodafone network and the identification Vodafone countries at Vodafone Turkey.

OUR PERFORMANCE IN THE 2016/17 FISCAL YEAR “As an individual, we must be open to changes in order to adapt and manage With our Global Columbus program, our two the developments in the world and young talents were assigned to Vodafone especially in the telecommunication offices in different countries to work for two sector with the acceleration of years. the advancing technologies and digitalisation. Thanks to the Discover OBJECTIVES FOR THE program, an important brand that 2017/18 FISCAL YEAR Vodafone owns with the mission of cultivating future leaders, I have had Through the Global Columbus program, the opportunity to work in two teams to help 2 Vodafone Turkey Discover with very different dynamics such as participants gain global experience at Marketing-Channel Management and Vodafone companies in other countries and Internal Communication in the first year also host 2 Discover participants from other of my professional life. My involvement Vodafone countries at Vodafone Turkey. in these teams despite the fact that I of our employees with high potential in am a new graduate, has given me the We have been participating in the Vodafone our organisation and their preparation for opportunity to recognise my strengths Group’s Global Columbus Talent Exchange leadership roles. and development areas at this early program since 2011 to offer our young stages of my career and thanks to the talents the opportunity to gain international important projects I have taken on many and project-based work experience. Young responsibilities. I am delighted to be a talents in the Vodafone family gain the part of the Vodafone Discover program, chance to participate in the Discover which gives me the opportunity to gain program. Each year, talents selected among great experience in a short period of our high-performing Discover time and the opportunity to develop myself in many different areas.”

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program participants, who are successful OBJECTIVES FOR THE in Sales Project, and already, 35 of our in the assessment centre, are assigned to 2017/18 FISCAL YEAR employees are included in the mentoring Vodafone companies in different countries process. to work for two years. This year, two more of Our goal for the 2017/18 fiscal year is to our employees took part in Columbus and have no less than 200 mentees and no less For the 2017/18 fiscal year, we planned went abroad. A total of 22 young talents than 100 mentors in our employee pool. two mentoring periods for May 2017 and benefited from the Global Columbus Talent November 2017, and our aim is that the Exchange program to date. number of mentors and mentees will not fall below 100 and 200 respectively. We also plan Corporate Mentoring Program to pass on the mentoring process for women working in the technology function within OUR COMMITMENT the scope of Women in the Technology Project during this fiscal year. In addition to In line with our strategy, goals and priorities all these processes, we plan to launch a new we will design and implement development mentoring process in which the mentors are programs to create a learning and high- selected from across the Company while the performing organisation with the help of mentees are selected from customer service. Vodafone Red Academy. International Development OBJECTIVES FOR THE Program (IDP) 2016/17 FISCAL YEAR The International Development Program To open up a new mentor workshop is designed to allow an employee from every three months and to ensure that any country of the Vodafone Group to the number of mentees in the Corporate work in a different Vodafone country for 4 Mentoring program pool is not below 150. to 10 weeks. With this program, we aim to enable our employees to exchange good OUR PERFORMANCE IN THE practice experiences with a different country, 2016/17 FISCAL YEAR A total of 76 mentors and mentees have develop their own knowledge and improve started the Corporate Mentorship Program themselves to be prepared for different At the end of the 2016/17 fiscal year, in the 2016/17 fiscal year, which is designed roles. We also want our employees to the number of mentees in the pool was and developed with the goal of helping have the opportunity to develop business determined to be 268. employees both on their own development relationships with colleagues doing similar and on building the potential of another work in different countries. Since its initiation, employee. We also launched the mentoring 12 employees from eight different countries process for women working in the sales took part in this program in Turkey, and 6 function within the scope of the Women Vodafone Turkey employees also participated in this program in 5 different countries.

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Until the end of this fiscal year, we aim to Society • Provide the basis for children’s welcome two employees from different awareness in robotics. countries in Turkey and to assign 2 of Vodafone Turkey employees to a different Coding Tomorrow Project • Encourage children to develop country for a short period of time. innovative ideas and provide basic NAME OF THE PROJECT solutions to them. Coding Tomorrow Determination Process for Projects and Candidates • Support equal opportunities in START DATE education. August 2016 Project Review TARGET AUDIENCE AND OUR PARTNERS OUR ACHIEVEMENTS Habitat Foundation Nomination Process • Help children between the ages of 7-14 become literate Interview and Selection • Education in 15 cities

Stakeholder Management • Education for 739 Syrian children

• 6 hackathons in 6 cities Journey Planning • 715 children to join hackathons Evaluation Process • One of the children who received After completion of the short-term education participated in the Connected assignment within the program, the Education event in England. OUR AIM employee reviews the process before returning to his / her home country, and his 2016 PROJECT CITIES (6 CITIES) • Strengthen the human capital in order / her manager’s feedback is collected and to contribute to the growth of software recorded in corporate records. Istanbul, Izmir, Samsun, Mardin, Kayseri, sector in Turkey. In addition, we collect feedback from both Sanliurfa the employee and the manager in order to be • Ensure that the young generation has able to evaluate the human resource needs PROJECT CITIES UNTIL the digital talent to participate in the that may arise in the future. 2017 NOVEMBER (15 CITIES) global economy Istanbul, Ankara, Izmir, Bursa, Erzurum, Kars, • Provide high quality computer Kilis, Mardin, Urfa, Afyon, Antalya, Denizli, technology education Kayseri, Rize, Samsun

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TARGET PROJECT CITIES FOR 2017/18 circuit systems by receiving introductory Through this program, children learn to training on robotics programs and Makey create their own games and animations, Istanbul, Ankara, Izmir, Bursa, Erzurum, Makey applications. All day hackathons are and in the training programs given within Kars, Kilis, Mardin, Şanlıurfa, Afyon, Antalya, organised so that students can apply what the project, children are taught 4 basic Denizli, Kayseri, Rize, Balikesir, Malatya, they learn. values that constitute the basis of the do-it- Edirne, Manisa, Aydin, Mersin, Adana, yourself culture: Samsun, Trabzon, Duzce, Siirt, Gaziantep, Arduino is the third level of training given Elazıg, Erzincan, Konya, Eskisehir, Sivas ve as part of the “Coding Tomorrow” project • Dream Kibris provided for children aged between 10 and • Design 14. During the 16-hour Arduino training, • Do As Vodafone Turkey Foundation, we have • Share been developing the digital competencies of children, who are architects of the gigabit Social Impact of the community, through coding and robotics Coding Tomorrow Project training since August 2016. We have been doing this with the Coding Tomorrow Project Number of project cities 5 in cooperation with the Habitat Foundation. Number of children 407 participating in the project Within the framework of the “Coding Sept. 2016 - Time Frame Tomorrow” project, we aim to foster Feb. 2017 generations of creators, not consumers Before the After the of technology during the digitalisation Training Training process of Turkey. With this project, (%) (%) I know about children aged between 7 and 14 are 22.3 56.8 the Project trained in coding through the “Scratch” I am interested coding program developed by MIT, known 54.1 72.4 in the program as the best technical university in the I feel happier when world, and the participants develop ideas children have the opportunity to access an 60.9 78.1 about programming within the context end-to-end training from basic electronics programming of education to increase their creativity to three-dimensional modelling to practice I can make my own and create their own imaginary worlds creation and prototyping. As of December 22.9 54 games with Scratch so they can produce their own games. 2017, we plan to have Arduino training The training programs are provided by programs as the third step of the project in I can code longer and the young volunteer instructors from Istanbul and Ankara. more difficult programs 18.2 53.3 the Habitat Association. Children who to crack a software are studying Scratch also work in teams The training program was designed to I want to remake a game to get acquainted with the mBot robots include all the current content that children which has been made 40.6 63.3 and learn the basics of electronics and should have in the context of coding. earlier using Scratch I want to be a 23.9 50.6 programmer in the future

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Success Stories from the Coding Tomorrow

ESRA ELBUĞA BERK SÜRÜCÜ Coding Tomorrow Project Participant Coding Tomorrow Project Voluntary Trainer

The “Connected Education” Report, which 18-year-old Berk Sürücü set up a coding was prepared by the Vodafone Group stand and presented to the participants Foundation to draw attention to the effects of a live demo of the coding program in digitalisation in education, was announced in Connected Education event in London. Berk hers. Esra said that, when she achieves her London last June. Esra Elbuğa, an 11-year-old won the “Young Entrepreneurs” award with dream, she first wants to design a shoe that who participated in the event on behalf of the project he developed with his team could massage her father who’s tired when he Turkey and was trained as part of the “Future over a 54-hour hackathon in Silicon Valley comes home in the evening. Coders” project, received great interest from in 2014. Berk, who is also a member of the the audience by explaining how coding has 3646 INTEGRA, a FRC Robotics team which “Coding training has increased my interest changed her life. Esra Elbuğa, born in 2007, was selected among the top three in the in technology and also had a positive whose family migrated from Batman to world in 2016/17 period, is a voluntary impact in my education. I think there is a Istanbul 20 years ago, stated that the coding trainer in the “Coding Tomorrow” project link between mathematics and coding. changed her point of view towards life and and provides software and algorithmic Especially in mathematics classes, I now stated that all children should receive this thinking training for children between 7 and feel more comfortable and successful. I education. Esra, who wants to be a shoe 14 years old. think all my peers should benefit from these designer in the future, said that coding opportunities.” training had a major impact on this dream of

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‘’I am 18 years old and I’m a senior in high KUTAY YALÇIN school. I am interested in software. My Coding Tomorrow Project Participant interest in software development began at an early age and I learned some basic software languages. When I saw the Coding Tomorrow Project, I was thrilled to be able to improve myself and teach coding to younger children, so got involved in the project. As students, we’re already learning from our teachers. But now there is a new concept, which is “learning while teaching”. It gives me great pleasure to teach others within this concept. I am able to communicate with different people “People who start coding late in their life and different age groups through different have a hard time completely understanding channels with coding, which enables me to it because they would be past their peak for improve myself.” learning. It’s easier when you learn coding at a young age as your brain processes it robustly. We work with robots and code with the scratch program. We have fun as we learn. Learning to code, which actually sounds hard to us, is better this way. I want to contribute to this project in the future as a computer engineer.”

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3,323 Vodafone Turkey employees, 9,786 dealer and 21,084 sub-dealer employees, more than 5,700 call-centre employees, business partners, university students and our customers...

We are Preparing for the Future

We respect human rights; offer every individual who works for opportunities for development Vodafone. We care about our to our employees, stakeholders contribution to the economy and society with the awareness and public policies. We give that investing in people is the the utmost importance to most important asset; constantly support welfare increase and work to provide the perfect ensuring compliance with laws customer experience. It is our wherever we operate. We show most basic responsibility to zero tolerance to bribery and take measures for protecting corruption.

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Principles and Practice

Our Approach to Human Rights local regulations and international rules on human rights. We comply with At Vodafone Turkey, we fully acknowledge Vodafone’s Privacy Commitments in all our responsibility to “respect human rights” our activities and services. as presented by the United Nations Guiding Principles on Business and Human Rights. • Child Rights: The exposure of children We extensively demonstrate our respect to and youth to harmful content via human rights in Vodafone Code of Conduct. digital media are among the issues that generate public concern. As Vodafone We conduct various activities in our Turkey, we offer various programs to company and supply chain in the areas with support parents in encouraging their potential risks identified by the Vodafone children to use digital technology in a Group. secure and responsible way.

• Labour rights: We respect the rights • Economic, social and cultural rights: and freedom of all our employees and We adopt a “zero tolerance” approach individuals in our supply chain. Our to bribery and corruption, as outlined employment policies that were formed comprehensively in our Code of around Vodafone Code of Conduct Conduct. are also in line with the UN Universal and safety, ethics and environmental Declaration of Human Rights and Core protection, and we monitor the Conventions of the International Labour fulfilment of such commitments. Organisation. Within the framework of our Code of Ethical Purchasing; • Civil and political rights: The most we obtain commitment from all of fundamental issues in our sector are our suppliers that they will operate freedom of expression and privacy. in compliance with our standards on We have respect for the privacy rights human rights, occupational health of our customers in accordance with

5 https://www.vodafone.com/content/dam/group/about/downloads/code-of-conduct/Turkish-Code-of-Conduct.pdf

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Our People

3,297 3,365 3,323 3500

3000 2,699 2,693 2,629 2500 2000 1500 1000 554 623 652 Our Human Resources Policy 500 44 49 42 0 • To create a customer-centered 2014/15 2015/16 2016/17 organisational culture where we Fiscal Year Fiscal Year Fiscal Year “anticipate the needs of our customers; make innovation an integral part of the way we do business by putting ourselves

into the shoes of our customers; and 3500 3,297 3,365 3,323 make a difference through ownership 3000 and commitment”, 2500 2000 1,344 1,258 • To meet our employee requirements 1500 1,224 1,156 most efficiently, enable employees to 1000 1,081 1,136 992 manage their careers through internal 500 971 823 performance and talent management, 0 prioritise employees through internal 2014/15 2015/16 2016/17 Fiscal Year Fiscal Year Fiscal Year career opportunities, and train professionals who will lead the mobile Total data revolution in Turkey, Senior Management Middle Management • To create an organisational culture of In line with our Diversity and Inclusion Headquarters (Istanbul) constant learning and teaching, to be an Policy, we value and celebrate our Call Centre (Istanbul, Ankara) excellent company that employs only diversity during recruitment, performance Other (Senior Expert, Expert, etc.) the best talent, customer oriented, and assessment and promotion processes. Other* believes in the strategic importance of

executive and leadership development *Other: Covers employees who mainly work in technology and and team spirit. sales in regional centres in 12 cities, including Istanbul, Ankara, Izmir, Adana, Antalya, Bursa, Diyarbakır, Erzurum, Kayseri, Sakarya, Samsun, and Gaziantep.

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Age Range by Staff Category (%) Vodafone RED Academy

Under 30 Years of Age While aware that investing in people creates the highest value, we are committed to 34 34 33 being a global brand that leads the business world with the development opportunities 0 0 0 1 2 1 we offer to our employees, stakeholders and society. With our training and development Senior Middle Other Management Management centre Vodafone Red Academy, we create projects to empower our target audience of Between 30-40 Years of Age 3,323 Vodafone Turkey employees, 9,786 stores, 21,084 sub-dealer employees and over 5,700 call centre employees, business 71 67 65 partners, university students, and customers 55 53 52 in using new technologies efficiently. 32 22 26

Senior Middle Other Management Management

Between 40-50 Years of Age

71 67 61

33 Within one year of professional 27 30 11 12 14 and personal development, we touched the lives of our Senior Middle Other employees via 426 different Management Management 2014/15 Fiscal Year in-person trainings and 547 2015/16 Fiscal Year different e-learning contents. Over 50 Years of Age 2016/17 Fiscal Year

7 6 7 1 1 1 0 0 1

Senior Middle Other Management Management

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Vision of Vodafone Red Academy assessment centre of Red Academy and Training Management System become internal trainers if they succeed. To become a unified communication As Red Academy, we offer our employees We organise “Internal Trainers Day” every academy committed to supporting the all personal and professional development- year for our internal trainers, who deliver digital transformation of leaders in Turkey training programs via Vodafone Learning 78% of our training courses annually. On this through innovative and out-of-the-box – our training management system. Used special day, we bring our Human Resources development solutions for the satisfaction throughout the Vodafone Group, the Team together with internal trainers and of Vodafone customers. platform helps participants easily plan, their managers. On this special day where follow and report in-class and online Mission of Vodafone Red trainings as well as examine training contents and access the courses required. Academy Vodafone Learning Platform also operates in line with seven professional development To become a development centre that portals for various functions created by leverages Vodafone’s global knowledge with Vodafone Group. With this integration, our our local experiences to benefit our entire employees can access all training courses eco-system. that will support their occupational and professional development via these portals. Internal Training Process When information needs to be made We are committed to continuous learning available rapidly to all channels, we make and teaching, to thus improve our use of mobile training and videos, which operational performance. Red Academy we develop, with our in house resources by guides our employees on their professional using various content development tools. and personal development journey with an In addition, we use interactive e-learning internal training staff of 141 people. Our methods to provide all field staff and call trainers design learning solutions in line centre employees with the training courses with our business objectives and transform related to the systems and the products- these into efficient training programs in services that are compulsory to learn. various areas. Vodafone Red Academy Learning Our internal trainers also support a variety we bring together the Human Resources Center of platforms with training and development Team and all our internal trainers and programs outside of Vodafone, especially at their managers, we support education in Vodafone Red Academy has the goal universities. They also provide development Vodafone and ensure that all stakeholders of providing the best digital learning guidance to a large Vodafone ecosystem who provide continuous improvement meet experience to its employees, and it unveiled of employees, suppliers and stores. on a common communication platform. its new building “Learning Centre” on June Periodically, employees can attend the

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10, 2015 in Taksim, Istanbul. The Centre Average Hours of Training Per Person Per Trainings Provided to Our was designed as the best digital academy in Year Based on Staff Category in Employees in 2016/17 Fiscal Year Turkey and provides a customised learning 2016/17 Fiscal Year experience to the participants via mobile Behavioural Trainings 26,328 applications. Also, the “beacon” devices 28,379 within the building are used to automatically Senior 14.4 monitor the participation of employees Management 5,584 during the training. 5,950

Selections from Vodafone Red Middle 24.8 1,795 Academy Programs Management 256

We reached 236 people in “Vodafone 327 United” competency development program, 39 which is designed to bolster team spirit and inter-departmental collaboration. With this Senior Middle Other** Total program, we have been awarded with the Management Management “Best Program that Supports Transformation in Business Strategies” award by Brandon Hall and “Education and Development Functional Trainings 60,782 Program with the Best Impact on Results” 61,229 award by the TEGEP Association in 2015. 5,392 Average Hours of Training 5,524 Per Person Per Year in 2016/17 Fiscal Year

91 356 Our People

29.8 Other** 25 107 3rd Party Employees 29.8 Senior Middle Other** Total Management Management 6.3

Training Period Number of Participants Man-hour Man-training

** Includes all staff other than Senior and Middle Management. ** Includes all staff above Senior (E, D and C bands) and middle management (F band).

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Employee Surveys Through a “People Survey” conducted every year in the Vodafone Group, we OUR COMMITMENTS do a pulse check of our current working climate. The results of the survey answered We will continue to maintain employee anonymously, are used to measure the loyalty and encourage them to be brand commitment of Vodafone employees, ambassadors that recommend Vodafone find ways to improve it, and evaluate the products and services. performance of managers. According to the 2016 survey, our Employee Loyalty Index OBJECTIVES FOR THE 2016/17 FISCAL YEAR

• To maintain Employee Loyalty Index score at 80.

• To reach 77 points at Employee Net Promoter Score.

OUR PERFORMANCE IN THE 2016/17 FISCAL YEAR

• Our Employee Loyalty Index score was 81.

• Our Employee Net Promoter Score was 74.

OBJECTIVES FOR THE 2017/18 FISCAL YEAR Score was 81%. Meanwhile, the “Employee Net Promoter’s Score”, which measures the • To maintain Employee Loyalty Index extent to which our employees recommend score at 80. Vodafone products and services, is 74%. The percentage of the employees that are • To reach 78 points at Employee Net proud to be employed at Vodafone is 90%. Promoter Score.

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Sales Channels • All store managers participating in By analysing the results of the Development Development Centre Program the Development Centre Program Centre Program in detail, we determine areas are subject to a 60-question online to improve in on a categorical and regional We have an ever-increasing work dynamic personality inventory test precisely basis. The development areas that represent to enable our customers to experience prepared for them. an important part of annual training planning “Excellent Customer Experience” at our 1,212 are supported by online and in-person independent retail outlets across Turkey. We • Each group includes 8 store managers training programs, and the field sales force is designed our Sales Channels Development and 3 evaluators. constantly being improved in Vodafone. We Centre Program to assess the managerial designed the Development Centre Program skills and competencies of our store to support and improve our field sales managers working at these locations and to force. Although this program has strategic identify specific development areas for their significance as it shapes investments in sales sales channels. channels training, the phrase “Assessment Centre” used in project naming can cause Within the scope of the Development Centre misunderstanding and misinterpretation Program, we evaluate our Store Managers of the project goals and objectives, and an at every location in Turkey according to overall nervousness. Therefore, it is critical to the global competencies defined as “The carefully design each phase of these projects, Vodafone Way” principles. Throughout this beginning with the naming. program, Store Managers handle special situations designed by Vodafone that target leadership, competitiveness, customer focus, speed, simplicity and confidence.

In the Development Centre Program;

• Store managers working at Vodafone Stores, Vodafone Mobile Centres and Vodafone Express stores are included. • At the end of the program, store managers are graded in 5 categories. • 5 case studies measuring 8 competencies that are aligned with The • Results are analysed on an individual and Vodafone Way principles are specifically regional basis, combined with analytical prepared. data.

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Occupational Health and Safety (OHS)

We consider taking the necessary • Improve the performance of Vodafone precautions to protect every individual OSHE-W by increasing awareness of who works for Vodafone from any kind of everyone we interact with to understand danger to be our main responsibility. We and comply with their OSHE-W prioritise occupational health and safety in responsibilities in tasks they carry out, all our operations with our OHS practices, contractor OHS standards and our OHS • Reduce risks in operations for policies covering even our customers. continuous development by including our employees, contractors, suppliers Our Occupational Health & and customers in topics related to Safety Policy occupational health and safety,

We are committed to being a pioneer in • Use resources to develop and our sector in Occupational Health, Safety, implement the OHS plan and its Environment and Welfare (OSHE-W); and to objectives, and communicate them protect the health, safety and wellbeing of effectively and consistently, the society, our employees, subcontractors and suppliers everywhere we operate while • Manage and implement the 7 Absolute also protecting the environment we interact OHS Rules in all our operations at all with. • Create a strong occupational health, times safety and environment culture where In accordance with the Vodafone Global legal obligations are fulfilled with the Occupational Health & Safety Principles, as support of senior management, and all Vodafone Turkey we commit to; employees, contractors and suppliers contribute to the implementation and • Manage OSHE-W not as a separate task, improvement of OHS Procedures in but a critical and indispensable part of addition to complying, our work;

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Vodafone Occupational Safety occupational health and safety experts and • Never use a mobile phone while driving! Absolute Rules track continuous improvement. If you absolutely must use it, do so after pulling over or with hands free devices! We created “7 Absolute Rules” to protect each individual who carry out activities for I am Safe with 7 Absolute Rules! • Always wear a safety belt when working Vodafone from risks. Each of these rules at heights, use fall protection system defines the telecommunications industry • Always wear your seatbelts while driving (life-line) and take all necessary risks and encourages the establishment a vehicle or on any seat during the trip! measures! of separate operational health and safety management systems to take relevant • Unless you are competent or an expert, measures. In our company, we define never conduct electrical work or compliance with the 7 Absolute Rules as a interfere with electrical systems! necessity for all parties and manage it with zero tolerance. • Never undertake any street or underground work activities unless During operations, every Vodafone employee, authorised! contractor and business partner should: Managing Occupational Risk • Comply with the 7 Absolute Rules at all in the Telecommunications times, Sector • Intervene when they see unsafe working Through the Vodafone Occupational Safety conditions, Strategy, we address the following issues for all individuals operating in Vodafone across • Always take into account the effects of a wide range of locations. their decisions and actions regarding the health and safety of other people. • Never use alcohol and drugs that restrict • Traffic Risks With the implementation of our standards movement and perception in the • Operating with Electricity, that have been prepared for our high-risk workplace or while driving a vehicle! If activities and other operations, we are your routine medication has side effects • Working at Heights, helping to minimise the risk of accidents. such as sleepiness or numbness, do not With the directives, we have established an drive any vehicle! • Underground Excavation Activities, operational safety management system that is sustainable and consistent with our • Never exceed speed limits on business • Contractor Management “0” accidents target which covers all of our trips and while driving! Travel with ecosystems. We ensure the continuity of appropriate speed in compliance with the the system with regular inspections by our rules and according to road conditions and the vehicle!

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Traffic Risks in Turkey During training and other forms of off electricity from regions’ electricity communication, we provide the necessary distribution companies. Each step in a Annually, 1.25 million people in the world information on not using mobile phones high-voltage job is photographed to get and 20 people a day in Turkey lose their lives while driving, which is one of our Absolute permission from the assigned project officer due to traffic accidents. According to the Rules. For our employees who do not obey and an Occupational Health and Safety European Transport Safety Council, driving for this rule, we monitor traffic fines and organise Specialist accompanies the activities the work in countries like Turkey with high traffic necessary activities for them to increase entire time to ensure that the operation risks is similar to working in a place that is awareness. runs smoothly. Using these security exposed to many different risks. measures, we completed 325 high voltage operations throughout Turkey with “0” To minimise these risks, we educate our accidents in the 2016/17 fiscal year. employees and implement high standards to the vehicles they operate. In the 2016/17 We have successfully completed all low fiscal year, 655 Vodafone employees voltage projects with our Regional Solution completed their safe driving training before Partners with “0” occupational accidents as receiving their company vehicles. Those who a result of carrying out our activities with were not able to pass the training were not competent employees and executing work given their vehicles. In addition, 887 people permit systems through documenting the who work in Vodafone sales operations use of necessary protective equipment and received individual training from Vodafone insulating tools with photographs. Operational Safety Specialists before their vehicles were delivered.

We take the following precautions against traffic risks:

We require all passengers traveling in our vehicles to wear seatbelts, including Working Safely with Electricity passengers in the back seat. We monitor this situation during random inspections and Working with electricity entails a very high accident investigation processes, and issue risk. Therefore, our Electricity Safety and penalties if not complied with. Work Permit Procedure includes separate safety precautions for high voltage, low We monitor vehicle speeds with a mandatory voltage and extra low voltage. For high- tracking system that everyone in the voltage operations especially, we plan company including business partners and ahead of time and get permission to cut contractors are issued. Through this system, we monitored the speed of 9,304 vehicles in fiscal year 2016/17.

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Working Safely at Heights without authority or expertise can work utilize metal and non-metal radar devices to in underground or street excavation. accurately identify all excavation routes. We We provide our mobile communication Our Excavation and Fiber optic Projects mark the identified route depths and stop services through the interaction of antennas Occupational Health and Safety Procedure excavators when they reach the marked located on roofs and towers. Thus, working cover all these areas of work areas therefore the job continues with safer at heights is one of the highest risks of the and more cautious excavation methods telecom sector. It is mandatory for those Our priority in excavation jobs is first to without damaging the lines or interrupting who will work at heights to complete the carry out our activities without causing access to existing services. “Working at Heights and Rescue” training harm to our employees or society, and from companies we approve beforehand. then to the underground embedded Along with this, we direct the traffic flow with signs and markers for environmental In addition to the training, we require the protection and use barriers to prevent use of personal protective equipment (PPE) people from accessing the excavation area. at all times while working at heights, and Within the framework of these measures, that the PPE be CE certified and tested by an there were no traffic accidents or injuries accredited organisation in accordance with during fiber excavation jobs in the 2016/17 the relevant EN Standards. fiscal year. We check the PPEs of site workers both during site audits and collective activities. Contractor Management We document and dispose of the damaged PPEs. To ensure this process in implemented With our “Contractor Occupational Health safely, 1,058 employees working in network and Safety Management System” since fields received PPE control training. 2008, we have been ensuring that every individual within the Vodafone ecosystem By means of the audits and inspections performs his/her job safely and in a healthy carried out towards working at heights, there manner. We are the leader in raising was no fatal accident due to falling from awareness in the telecommunications heights in the 2016/17 fiscal year. industry thanks to our efforts in making service infrastructure. Therefore, all our contractors adopt and enhance an OHS Underground Excavation excavation activities require permission culture. Jobs from the relevant municipality, and the subsequent analysis of blueprints from The system includes steps such as Occupational health and safety in related institutions (electricity distribution, occupational health and safety assessment excavation jobs have gained significance, natural gas, water) to determine the of contractors before bidding, compulsory particularly with the rapid increase in fiber excavation routes. Due to the complexity Vodafone OHS training, and OHS audits on services in recent years. Our 7 Absolute of infrastructure services, we do not decide sites with OHS teams, which are must-haves Rules clearly state that no individual solely based on the blueprints, but also in our contracts. Through our OHS team, we

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carried out a total of 1,293 field inspections We attend conferences, Achievements in Contractor Occupational during the fiscal year of 2016/17. meetings and events related Safety Management System Audits are conducted to prevent to OHS, where we shared Number of contractors assessed in terms of noncompliance in field work, and various Vodafone’s internationally occupational safety fines are issued to the contractor if they standardised OHS practices 100 are detected. However, because we know 102 that just issuing fines alone is not the and work to develop the OHS 75 82 right method, we established the “Team culture in Turkey. 50 59 796 47 Leaders Incentive Program” to ensure 25 2009/17 Total safe operations. In this award program, 0 team leaders and team members that 2013/14 2014/15 2015/16 2016/17 operate by adopting OHS principles are Fiscal Fiscal Fiscal Fiscal Year Year Year Year identified through a comprehensive and fair evaluation, and they are awarded cash Total hours of occupational safety trainings bonuses. In the 2016/17 fiscal year, the in topics such as working at heights, safe award was given twice to contractors that driving, basic occupational safety, safe work in the field and a total of 133 people working in electrical works (Vodafone and were awarded with a net TRY 121,750 by contractor employees)

Vodafone Turkey. 123,847 125,000 104,909 100,000 Management 73,340 75,000 56,000 50,000 922,096 The importance of occupational health, 2009/17 25,000 safety and welfare issues within the Total company and the potential of policies to 0 2013/14 2014/15 2015/16 2016/17 make an impact are directly proportional Fiscal Fiscal Fiscal Fiscal with the importance given by the senior Year Year Year Year management. Thanks to the support Number of occupational safety audits on of our senior management, all our base station sites employees started to see their job-related responsibilities as their own responsibilities. 2,000 1,387 The Chief Executive Officer and Vice 1,500 1,350 1,066 807 Chairman of the Board of Directors have 1,000 9,809 personally visited our sites and conducted 500 2009/17 90 occupational safety evaluations between Total January 2010 and March 2017. 0 2013/14 2014/15 2015/16 2016/17 Fiscal Fiscal Fiscal Fiscal Year Year Year Year

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Our Occupational Health and Contractor Performance ecosystem. In addition to this, we reward Safety Performance our contractors who set a good example Our contractors face serious financial in occupational safety through the reward Major and High Potential and/or administrative sanctions if they do system we established in the 2014/2015 fiscal year. Accidents not implement the occupational safety management systems they commit to in their contracts. Contractors that continue The chart clearly shows that the total Our target for the frequency of high- violations or fail to correct their actions number of OHS violations by our contractors potential accidents for Vodafone employees are removed from the Vodafone Turkey on a monthly basis and the number of daily was a maximum of 1.5 for the 2016/17 violations in general have declined over fiscal year, yet we managed to reduce the years. We are aware that factors such this rate to 0.83 as of the end of year. In as variability in seasonal conditions, firm the 2016/17 fiscal year, three Vodafone changes and adaptation of new firms to employees suffered traffic accidents. The the system can cause changes in annual best result of the occupational safety violation numbers, and we set our goals measures taken was that nobody was accordingly. injured. Although traffic conditions in our country are not very suitable for completely preventing the accidents, measures we can take for the individuals in our ecosystem that save their lives are more important than anything to us.5

5 Accident Frequency Rate related to Vodafone employees is calculated based on the following formula that is used throughout Vodafone Group = (Total Number of Accidents / Total Working Hours) x 100.

90 Number of Contractor OHS Violations 80 70 60 50 40 30 20 10 0 Nov.13 Feb.14 May.14 Aug.14 Nov.14 Feb.14 May.15 Aug.15 Nov.15 Feb.16 May.16 Aug.16 Nov.16 Feb.17

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Safe Work, Healthy Employees In addition to the Well-being Challenge, we also sponsored iconic sports In the previous fiscal year, we developed a facilities and events such as Vodafone program that will help manage the energy Park, Vodafone Istanbul Marathon and of our employees better. With our healthy Semi-Marathon, and we will continue to lifestyle program we named “Corporate do so. Athlete”, we not only help our employees get healthier and more comfortable at work, • In the 2016/17 fiscal year, we provided but also develop initiatives on other healthy first aid training to 775 Vodafone lifestyle choices for our employees and their employees. families.

• With the “Cigarette-Free Life for Health” Program we offer support to employees who smoke to help them quit under the supervision of our on-site physicians. As an incentive, we reward our employees who quit smoking with points for shopping. 563 employees volunteered to quit smoking since the launch of this program in January 2013.

• Through Healthy Life Program, we support employees who want to lose weight. 1,001 employees volunteered to lose weight under the supervision of our on-site physicians since January 2013

• Vodafone Wellbeing Challenge Sports Contest encourages employees to exercise. During the monthly event that spans across all Vodafone countries, the country that exercises the most wins the challenge and winners are rewarded. For instance, a donation is made to the Vodafone Foundation for each employee that runs 100 km in a month.

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Our Contribution to the Economy and Public Policy

Major Indicators of our Contribution Our Contribution to the Economy to the Turkish Economy

In the 2016/17 fiscal year, our service Direct Revenue Contribution revenues increased to TRY 8 billion and we transferred this amount to the state Taxes on as taxes, to our employees as salaries and incom paid 1,498 benefits, and to our suppliers in exchange (TRY Million) for products and services as well as research and development and investments in Other non-tax technology. Our business operations also fiscal payments have a multiplier effect that indirectly 821 (TRY Million) contributes to the local economies we operate in. Indirect Revenue Contribution

Employment Creation Taxes such as VAT and special communication tax, 1,763 We directly employ 3,323 people in paid on expenditures Vodafone Turkey. We also provide indirect (TRY Million) employment for a total of approximately youth unemployment and to help cities in 40,000 people including the employees Anatolia get their fair share of investments, Capital Investments of our suppliers providing products and we continue to open call centres in Anatolia. (TRY Million) 1,163 services, store employees and employees of In this direction, we provide employment third parties that we outsource. opportunities for more than 5,700 people Direct Employment in İstanbul, Ankara, İzmir, Samsun, Konya, (Number Of People) Call centres that operate on a 24/7 Şanlıurfa, Afyon, Malatya, Elazığ and Adana. 3,323 basis are at the heart of our investment and employment capacity. In order to contribute to overcoming the problem of Note: Figures given in the table are audited as part of the Vodafone Group audit and reflect the 2016/17 fiscal year data of Vodafone Turkey Group.

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Taxes and Investments • Development of policies that will • Necessary steps related to required contribute to the digital transformation legislation for bringing next generation In line with the goal of end-to-end digital of Turkey and increase the competitive technologies that will pave new ways development in Turkey we set, we invested power of Turkey in global areas are in areas of entrepreneurship and TRY 1.2 billion in the 2016/17 fiscal year. promoted, innovation to consumers are taken, In addition, we support the prosperity of the country with the taxes (VAT, special • Efficiency and effectiveness is improved • Scarce resources (mainly frequency) communication tax, etc.) paid through our by driving the impact of Information are used in an effective and efficient customers who use the services we provide. Technologies in every aspect of the manner. In the last nine years, we have paid more economy and digitalising the economy, than TRY 25 billion in taxes to the Turkish Government. The amount of investments we made from 2006 to Our Contribution to Public Policy the end of the fiscal year of 2016/17, particularly In the telecommunications industry, we investments in the area of are committed to fulfil our responsibility to participate in developing competition 4.5G and fiber infrastructure, policies to prevent distortion of competition reached nearly TRY 20 billion. and to ensure a sustainable competitive environment. For this purpose, we regularly exchange information on different platforms with regulatory authorities, other public institutions, non-governmental organisations, and the general public.

Our Goals • Regulatory obstacles against products and services that improve the general • Competition policies are implemented welfare and development of society are efficiently and in a target oriented overcome, manner,

Innovation and sustainable investments • Current regulations in the market • are encouraged for fixed and mobile are reviewed and the best policies broadband infrastructure, network and are adopted in light of international services, examples,

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Combatting Bribery and Corruption

Corruption weakens entire societies, We provide training on work ethics and increases poverty, weakens fragile fight against corruption for all employees populations, and reduces work productivity, and raise awareness. We regularly monitor leading to increased inequality and crime our Bribery and Anti-Corruption Policy and and imbalance in civil society. It is of utmost communicate with our business partners, importance for our commercial interests including all our employees, suppliers and too to help prosperity, maintain social contractors. credibility and comply with laws wherever our operations are. We do not tolerate bribes As Vodafone Turkey, by going one step or corruption in any way. We prepared our further in the fight against corruption, anti-corruption policy based on our “zero we are determined to be one of the first tolerance” approach in the Vodafone Code companies in the telecommunications of Conduct. industry to receive the ISO 37001 Anti- Bribery and Anti-Corruption Certificate and We also fully comply with the policy establish our Bribery and Anti-Corruption compliance assessments conducted Management System in accordance with by the Vodafone Group regarding anti- this certification in the next fiscal year. For corruption efforts. We take measures to this purpose, we are establishing a team of prevent the occurrence or recurrence of experts and receiving Practice and Audit risks by recalling, following up, reporting enable all employees within our ecosystem training programs. and reminding the necessary rules to to share their questions and opinions and comply with our Bribery and Anti-Corruption report misconducts they have witnessed Policy and the procedures and processes and/or suspected anonymously. We receive supporting it and any possible internal and Ethics Reporting Hotline services via local external abuse risks to the company. and global companies. With hotline services to report issues regarding ethics like “Speak Up” and “Red Line” established for this purpose, we

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Mobiles, Masts and Health

OUR COMMITMENTS OUR PERFORMANCE IN THE 2016/17 FISCAL YEAR • We will increase the level of awareness and knowledge of our employees • Although the regulation has not been and suppliers on Electro Magnetic revised yet, the final draft of the e-training Fields (EMF) and enable them to share content has been prepared to be used information when needed. as training. It is targeted to be open for employees in December 2017. • We will continue sharing information through various channels to increase • Booklets and brochures were drafted the understanding and awareness of our and the questions from the public and stakeholders and customers on EMF. stakeholders were answered.

• We will continue to perform the • The municipality and the universities requirements of our EMF policy. were informed through seminars and training programs. OBJECTIVES FOR THE 2016/17 FISCAL YEAR • The number of field inspections between April 1, 2016 and March 31, 2017 was • To adapt the e-learning content when • To reply EMF-related questions from the 1,293. the Information and Communication public and stakeholders. Technologies Authority (ICTA) regulation • We have updated Vodafone Turkey related to the “Security Certificate” is • To check whether particular sites comply RF Fields Health and Safety Risk enacted, and ensure that 50% of our with the ICTA regulations and company Management Policy and ensured that all employees receive this training. policies stakeholders are compliant with it.

• To prepare EMF brochures with new • To update Vodafone Turkey RF Areas content when the regulation on “Security Health and Safety Risks Management Certificate” is finalised. Policy and ensure that the policy is followed

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OBJECTIVES FOR THE We are the first mobile phone operator in encourage everyone by showing the leading 2017/18 FISCAL YEAR Turkey that has a corporate strategy, policy applications on EMF. and plan on Electromagnetic Fields (EMF). • In this period e-training will be We manage the issue in coordination with Among our leading EMF practices are implemented with the internal and a team of experts within our company providing training for employees and other external stakeholders who require and inform the public via our company stakeholders, placing warning signs and training. website6. Our vision is to lead the sector in placards to inform about EMF around our order to overcome public concern related base stations, making site audits on EMF and • Making booklets and brochures ready to to mobile phones and base stations and conducting practices in order to increase share with stakeholders. public awareness.

• Responding to EMF questions from Vodafone Group monitors the reports of all the public and stakeholders in the new international agencies and organisations period. related with EMF (GSMA, ICNIRP, ETSI, ITU, WHO) and shares the new developments • Continue to make site visits at least with all EMF organisations, including those 1,000 times in the next reporting period. in Turkey. At Vodafone Turkey, we direct the necessary arrangement and information Mobile devices fulfil our communication studies with this information we obtain from needs through the nearest base station the Vodafone Group. by using radio frequency (RF) fields. When using mobile phones, the human body absorbs some of the RF field. Although The World Health Organisation declared, by examining thousands of scientific research studies, that a negative impact on health resulting from mobile phone usage has not been detected so far, we know that some of our stakeholders are worried about this issue.

7 http://www.vodafone.com.tr/VodafoneHakkinda/Cep_Telefonu-Elektronik_Alan_Maruziyeti.php

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Stakeholder Opinion Vodafone Turkey. Our employees are In addition to the audits performed by our provided with enriched training courses own internal teams, we are in one of the UĞUR DAMCI as they are intended to become EMF countries that are fully compliant among Vodafone Rollout & Field ambassadors who can give general Vodafone Group companies, including EMF Operations Support Expert information about EMF when needed. issues under the Vodafone Group’s Policy It is pleasing to see that EMF awareness Compliance Assessment. has increased on the whole during site visits! We look out for the health and safety of all our stakeholders at the highest level by enforcing effective policies on the prevention of unauthorised access to sites, mandatory trainings and precautions for field work, personal protective equipment, tools and equipment that are necessary for field work, and recording of all the field work. The first issue that I can emphasise as an employee of Vodafone Turkey is Vodafone will always be amongst the driving that occupational health and safety is forces of technology and information with always considered a crucial issue. In its vision, the mission it undertakes, and the the base stations and sites that make value it attaches to the environment, future up the Vodafone network, policies and and people. practices are created to guarantee a high quality working environment I’m ready for the future with Vodafone! providing safety and health to employees and which are also capable of meeting the risks and demands in the workplace. Mobile phones and base stations use “Radio Frequency” Base stations are constantly monitored (RF) fields to fulfil our communication and maintained by Maintenance Solution needs. Vodafone is leading the sector Partners (BCO) and are reported periodically. in Turkey with its corporate strategy, As part of this maintenance work, the policies and public information about compliance of EMF and OHS warning signs electromagnetic fields (“EMF”). of the areas, compliance with the ICTA legislation and Vodafone Turkey Policies are Raising awareness on EMF is included checked. amongst the sustainability targets of

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Supply Chain Integrity and Safety

We will continue to support our suppliers Ethical Purchasing in order for them to perform their activities in accordance with Vodafone standards in We procure a significant amount of our terms of ethics, the environment, social services and products from suppliers. issues, and health and safety. We purchase products and services from approximately 800 actively operating OUR COMMITMENTS companies, most of them commercial services and technology companies. Most Continue to inform and raise awareness of our suppliers we actively work with are amongst our suppliers on OHS and ethical local companies, whereas some are global rules. corporations.

OBJECTIVES FOR THE 2016/17 FISCAL YEAR In 2016, we made local purchases amounting to Organise a session that will emphasise the approximately TRY 3 billion. importance of OHS and ethical rules in business life on Supplier Day. Companies who would like to become a OBJECTIVES FOR THE supplier of Vodafone must clearly state 2017/18 FISCAL YEAR OUR PERFORMANCE IN THE that they fully understand, accept and will 2016/17 FISCAL YEAR comply with the standards set out in our Ethical Purchasing Regulations during the To raise awareness on OHS, Business We gave a presentation on Anti-Corruption, election process. These acceptances are Continuity Management, Situation Occupational Health and Safety in Business stated in the standard terms and conditions Determination Process, Information Security and Network Operations on the Supplier Day of each contract made with all our suppliers, & Privacy and Contract Management while that we organised. regardless of its size and volume. Any giving information about the previous year’s supplier that does not agree to operate in performance and vision for the future on the line with the Ethical Purchasing Regulation Supplier Day that will be organised.

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cannot pass the supplier procurement assessments in order to ensure that they Issues Covered in Vodafone Ethical process and may not be able to start a comply with “Vodafone Code of Conduct” Purchase Regulation business relationship with Vodafone. and it is an inseparable part of the Ethical Purchasing Rules. • Child labour Supplier Performance Management • Forced labour

Health and safety Vodafone Supplier Performance • Management program is run in order to Freedom of organisation regularly assess the overall performance • of our main suppliers in terms of other Discrimination commercial criteria such as OHS, • sustainability, quality, information security, Disciplinary actions and technology. We share the results of • Performance Assessment with our suppliers Working hours and we work together with them to increase • their performance and plan actions for Payment improvement. We fully support them in • putting into practice these improvements. Individual behaviour When we need to work with a new supplier, • we implement a Competency Assessment Environment Process that helps us identify and evaluate • potential risks. In the 2016/17 fiscal year, the majority of global suppliers we evaluated have performed better than in the previous year.

Field Assessments

Based on the fact that working in a more secure environment has positive impacts on efficiency and economic benefits, we support our suppliers to improve their business processes and capacities in order to increase their performance in the field of OHS. Also, we conduct regular field

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Stakeholder Opinion Supplier Chain Efficiency • In the field leasing proposals to Program: My Vodafone, My municipalities and institutions, the BÜLENT ÖZASLAN Business “Supply Chain Management Power (SCM Sales Director at Huawei Power)” package provides alternative energy usage and production options The “My Vodafone, My Business” efficiency in addition to the rental offer, which will program has been continuing for five years contribute to the sustainability of the and focuses mainly on economic gains, time institutions. efficiency and environmental efficiency. Some of the examples for efficient use of Contracts with suppliers are shared resources are: • electronically, rather than printing the documents out. In this way, we not only reduce paper consumption, but also allow suppliers to have immediate online access to supplementary “Vodafone Turkey represents contract documents. With this process, an important part of our global an average of 800 kg of paper is saved customer base. Therefore, in all annually. the technological innovations we have made as Huawei, we seriously consider the requirements Supplier Day of Vodafone Turkey. Working as Supplier Information Day, which we have a strategic solution partner for organised every year since 2013, was Vodafone Turkey, which has the held on 24 November 2016 with the mission of pioneering the digital 173 participants from 110 companies. transformation, motivates us to In this context, we shared content on find more innovative, more efficient Anti-Corruption, Business and Network and more environmentally-friendly Operations, Occupational Health and solutions for our joint projects that we Safety with our suppliers and received their are currently pursuing and planning • In the procurement process of each feedback. for the future. From my own point technological equipment, we prefer of view, seeing that these efforts we products with high energy efficiency “10 Golden Rules of Purchasing”, which is make are spent for a structure that and electrical heavy duty equipment being implemented by Vodafone Supply really puts importance on social over diesel ones. By using LED lighting Chain Management globally, was shared responsibility, business ethics and in warehouses, unnecessary use of with the company beginning with Vodafone compliance with global standards and electricity is prevented. Turkey senior management and awareness beyond, gives me extra happiness and was raised. hope for our country’s future.”

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10 Golden Rules of Purchasing

1. Compliance and ethical purchasing

2. Assignment of tasks

3. Looking out for the company’s global interests

4. Consistency of expenditure commitments to company policies

5. Early inclusion of supply chain management in processes

6. Supplier relationship management

7. Centralisation of global suppliers

8. Compliance with the category strategy

9. Access to purchasing data and contracts

10. Sharing confidential information and documents

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Corporate Security, Confidentiality of Information and Data Security

OUR COMMITMENTS • Under Doing What’s Right (DWR), we will ensure that the Vodafone • We will audit the compliance Group’s training on high-risk policies is ofcorporate security awareness and the completed. practices of our suppliers with Vodafone standards and related laws. • We will aim to receive awards by participating in a competition for what • We will develop and apply the Sense we have done with Corporate Security. of Security Program with the aim of increasing awareness on security and its OBJECTIVES FOR THE applications among individuals in the 2016/17 FISCAL YEAR Vodafone eco-system. • To implement the due diligence process • We will continue our anti-corruption and with 50 suppliers. bribery practices with “zero tolerance” approach. • To realise the five actions we have set in order to monitor the success of the • We will continue to put emphasis Sense of Security project. on compliance with international standards regarding the management • We will carry out work to comply with • To give anti-corruption e-training to all of information security and privacy of the Law on Protection of Personal Data employees. customer information. dated April 7, 2016. • To continue with regular certification of • We will establish a new corporate access • We will continue to put emphasis on our processes in accordance with ISO/ management structure in order to emergency and business continuity IEC 27001:2013. manage the authorisations in our critical management at all stages of our system more efficiently and to make all services. • To establish the Vodafone Turkey business units except technical teams a Corporate Access Management fundamental part of the process. • We will begin to work for Vodafone structure and to make the necessary Turkey’s compliance with international implementations. standards on bribery and anti-corruption.

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• To establish a structure for fast and • In the 2016/17 fiscal year, Enterprise OBJECTIVES FOR THE complete responses to information Access Management Architecture 2017/18 FISCAL YEAR requests on data processing by our was designed, new processes were customers. created Three alternative solutions for • Put 50 suppliers through the supplier the technology infrastructure were due diligence process • To review our data processing and to examined and the one that best suits launch the work for compliance with Vodafone’s needs was selected. • Starting awareness studies and the law. conducting measurements with mini- • During the fiscal year 2016/17, tests. • To conclude ISO 22301 certification of we designed and implemented an Vodafone Northern Cyprus. infrastructure and a process that • To ensure that 90% of our employees receive the anti-corruption training that OUR PERFORMANCE IN THE was prepared by Vodafone Group. 2016/17 FISCAL YEAR • Continue to regularly certify our • During the 2016/17 fiscal year, we put processes in accordance with ISO / 44 suppliers through our supplier due IEC 27001:2013 Information Security diligence process. Standard

• In the 2016/17 fiscal year, work began • In the 2017/18 fiscal year, we aim on the rewards and talent management to deploy our Enterprise Access section in the human resources Management infrastructure and processes. integrate it with critical systems for the use of our employees. • A survey was sent to our managers to measure their views on security culture. • In the 2017/18 fiscal year, we will The results of the survey were reported. review our existing business activities and products in accordance with the • During the 2016/17 financial year, enabled our customers and employees requirements of the Law on Protection the training prepared by the Vodafone to effectively exercise their rights from of Personal Data and make the Group was examined and started to be the Act on the Protection of Personal necessary improvements. adopted to Turkish. Data. • Continue to regularly certify our • In the 2016/17 fiscal year, • In Vodafone Northern Cyprus, the work processes in accordance with ISO 22301 our companies, Vodafone carried out according to ISO 22301 Standard in VFTR, VBIAŞ, VFNET, VMOL. Telecommunications, Vodafone Net standard has been completed and the and Vodafone Northern Cyprus, have company has been certified with ISO successfully renewed their ISO / IEC 22301 after a successful external audit.. 27001:2013 certification.

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NEW TARGET ethical and reputational risks and manage to identify the areas we need to measure these in line with the Vodafone Business the security perceptions and satisfaction • To complete the certification process Principles. ratings as well as identify processes that need of Vodafone Turkey for the ISO 37001 change or update and to raise awareness. Bribery and Anti-Corruption Standard. To Sense of Security Program become the first telecommunications (SoS) We have begun rewarding employees who company to receive the certificate. support Enterprise Security efforts with Red Points in the human resources process. We We continue our work as part of the “Sense of • To translate the 5 training programs began by asking a question about risk and Security” program which is the first and only into Turkish and ensure that 90% of our ethics prepared by our Talent Management program in the Vodafone Group countries. +* employees receive the training. team to our employees during promotion evaluation interviews. Our program is still the • To participate in the International first program in the Group. Security Awards ‘17 organised by the Vodafone Group Corporate Security Confidentiality of Information function with the live implementation and Data Security of the Network Operation Business Continuity plan that was conducted in We consider our customers’ trust in us February 2017. regarding the security of their personal information as our most essential asset. Our Approach to Maintaining this trust is amongst our most Corporate Security fundamental responsibilities. We protect our customers’ personal information, mobile The main purpose of our activities as part of contact details and credit card information Corporate Security Management is to identify in compliance with the security controls the possible threats and vulnerabilities that defined both by the International Information may damage Vodafone Turkey’s revenue, Security Management System Standard image and reputation, and to take preventive under ISO/IEC 27001:2013 and PCI DSS and mitigating measures. Our Corporate We prepared a Security Awareness defined by the PSI Security Standards Security Management approach includes Questionnaire for all our Managers under Council. All of our Electronic Communication anti-fraud, anti-corruption, prevention of this program and received feedback from Services, infrastructure systems and laundering of crime revenues, due diligence, them on topics such as Physical Security, customer information provided by Vodafone information security, privacy, business Information Security, Business Continuity, are covered by ISO/IEC 27001. Our PCI-DSS continuity, personnel and asset security, and Internal and External Fraud Tactics, Speak certifications also cover activities that are awareness on security. With this end-to-end Up and Red Line. Our goal with this is to conducted by our customers’ credit cards as approach, in order to protect Vodafone’s understand how the Corporate Security well as our infrastructure for hosting services ecosystem and customers from any harm, processes and activities are reflected in the and other services provided for our corporate we objectively assess technical, commercial, management team by getting their feedback, customers.

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We provided Personal Data We continued to perform risk analysis 6 Protection awareness trainings to in Vodafone buildings and call centres our employees as well as our sales operated by our suppliers. In addition channels and customer service to general evacuation drills, we created staff. scenarios for different risks for buildings (epidemics, fire, etc.) and conducted 1 Emergency Management drills with the aim of reaching all of our employees. In order to become strong as a society and an institution with the capacity to In this reporting period, we started survive through natural disasters and other conducting risk analyses in offices and warehouses of our solution partners together with warehouses managed by third parties on Vodafone’s behalf. As of 2 the 2017/18 fiscal year, we have started conducting site visits to the offices and warehouses of our new solution partners.

Business Continuity Management

3 In the 2016/17 fiscal year, we aimed to put our Network Operation Business Continuity Plan into action. Many of our business units have been extremely dedicated to this activity, supported by our Senior Management and completed in 5 emergencies, we believe individuals must months including the preparation period. 4 be aware of such situations. With this insight We have tested the implementation of the and in accordance with ISO 22301 and ISO Network Operation Business Continuity 27001 Standards, we have formed disaster Plan from one switching site to another and emergency management procedures in real time and live in two provinces and and teams. We have continued our strategic we successfully completed the process 5 collaboration with the Search and Rescue without a customer complaint or a coverage Foundation (AKUT) regarding emergency problem. This exercise was one of the most management and added new procedures important outcomes of the ISO 22301 to our emergency management efforts. Business Continuity Standard that has been in place since 2010.

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We have a say in R&D with more than 250 engineers and 125 patent applications.

We Export Technology to the World.

OKSİJEN is our global innovation OKSİJEN, innovating not just company that paves the way for Vodafone Turkey but also in mobile communications for Vodafone Group, exports innovation and proves itself in technology as a proven innovation not only in Turkey, innovation campus. but also around the world; and aims to lead the digital transformation in Turkey.

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OKSIJEN

OKSİJEN, appointed as Vodafone Group’s About OKSİJEN “Global Innovation Centre” to create technological innovations for over 444 Established in 2000 and incorporated under million customers in 26 countries, exports Vodafone Turkey as a global innovation technology to the world. company, OKSİJEN intends to lead digital transformation in Turkey for a better future OUR COMMITMENTS while employing a labour force of local engineers. We continue to break grounds We will increase the number of innovative and create a great number of innovations solutions and services. with OKSİJEN. In the 2016/17 period, we continued to offer significant employment OBJECTIVES FOR THE opportunities and resources to our country 2016/17 FISCAL YEAR in R&D with a team of more than 250 engineers. To develop innovative products and solutions with new technologies used in the telecommunications sector (big data, IoT Innovation at OKSİJEN etc.). We continue to develop innovative OUR PERFORMANCE IN THE OBJECTIVES FOR THE products and services through OKSİJEN 2016/17 FISCAL YEAR 2017/18 FISCAL YEAR for Vodafone Turkey and Vodafone Group operators covering corporate and individual Progress was made in Innovative Campaign To develop innovative products and customers, as well as providing support Management Solutions, Artificial solutions with new technologies used in the for small and medium sized companies Intelligence Based Telecom Solutions and telecommunications sector. and entrepreneurial companies within Location Based Solutions. our ecosystem by including them in our projects.

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In addition, the “Gecensenem (Mylastyear)” application, developed by OKSİJEN as a big data project, received the “Creative Use of Data” In addition to our existing specialisations, Awards award at the Felis Awards 201 in we started working on Campaign “Direct Marketing” category. Management Solutions in the 2016/17 reporting period. Our work was heavily based on mobile advertising solutions to enable centralisation and automation in campaign management and innovative approaches for making campaigns more individualised. The “Avantaj Cepte” In addition, we continued working on application, designed by telecommunication solutions utilise OKSİJEN, also received artificial intelligence, and we produced three awards at theStevie prototypes for each of these solutions. InternationalBusiness Awards.

With a total of 125 patent applications in 2016, we have increased the number of patent applications made by 60% in comparison with the OKSİJEN has received two awards at previous year and have been BEETECH 2016 Awards organised by ITU ARI Teknokent, one of the leading among the companies with technoparks of Turkey under “Large Scale the largest number of patent Companies” with “R&D Employee Rate” applications in Turkey. and “Intellectual and Industrial Property Rights” categories.

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We supported 4,601 students in overcoming obstacles with 19,000 volunteers since 2008.

PLEASE SCAN THE QR CODE TO WATCH We are THE “DREAMS ACADEMY” Overcoming VIDEO Obstacles with Dreamers.

Dreams Academy is a social Art workshops such as responsibility project that vocal, rhythm, dance, film, gives free culture and arts photography, DJ, instrument, education to disabled and painting, design etc. are in scope socially disadvantaged young of the project that is run with the people that transformed into collaboration of AYDER, Ministry a permanent alternative art of Development and UNDP. academy to prepare young people for life.

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Vodafone Turkey Foundation

Being one of the 27 Vodafone Foundations • To provide solutions for social problems in the world, the Vodafone Turkey using digital technologies. Foundation has been committed to its mission of leading social change and • To support our society, primarily development since 2007. Vodafone Turkey employees, in carrying out volunteer efforts social services. In order to support sustainable development in Turkey, we at the Vodafone Vodafone Turkey Foundation Turkey Foundation cooperate with Advisory Board non-governmental organisations and other stakeholders with the intention of developing and implementing long-term projects. Our aim is to contribute to the steps Turkey must take for creating a well-trained, well-equipped and productive society. In our social investments, we act on the basis of the social needs map we The Vodafone Turkey Foundation Advisory created as a result of a long and meticulous Board was established with the aim to study to address the social requirements of develop projects, to put together strategies • To introduce the opportunities offered our country. and to determine a roadmap for the by communication technologies future. Members of the Advisory Board are to women, thus improving their Objectives of Vodafone Turkey esteemed leaders of the business world socio-economic conditions and Foundation and non-governmental organisations: Leyla creating an environment where their Alaton, Yavuz Canevi, Bülent Eczacıbaşı, entrepreneurship skills can flourish. • To cooperate with non-governmental Üstün Ergüder, Hüsnü Özyeğin, Arzuhan organisations and other stakeholders for Doğan Yalçındağ, Ali Sabancı, Meral İnci • To support the participation of the sustainable development. Zaim, and Ebru Özdemir. socially and physically disadvantaged individuals into social life.

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Vodafone Turkey Foundation and provide a total of TRY 5 million to the Accordingly, scholarships in Projects families of martyrs. the amounts of TRY 1,000 per In cooperation with the Turkish Red year for children in primary Apart from our Women First in Crescent, we will give education Entrepreneurship and Coding Tomorrow school, TRY 1,300 per year scholarships of the amount of TRY 1 million projects, the other foundation projects are for teenagers in high school, in the first year of the project to support listed below. the children of martyrs. We will provide and TRY 2,600 per year for for the children of martyrs whose parent students in university will be Fund for Families of Martyrs provided. START DATE July 2017 We provided half of the amount allocated for the first year of this project to the OUR PARTNERS designated families of martyrs via “Kızılay Turkish Red Crescent (Red Crescent) Kart”.

OUR OBJECTIVES Dreams Academy

• Provide education scholarships to Since 2008, Vodafone Turkey Foundation has help support children of martyrs be collaborated with Alternative Life Association successful in school. (AYDER), the Ministry of Development, and the United Nations Development Program • Provide education support for 630 (UNDP) to launch the Dreams Academy children. social responsibility program with aims to enable the inclusion of disabled and socially TARGET AUDIENCE AND OUR disadvantaged individuals into social life ACHIEVEMENTS through arts. At Dreams Academy, 3-month passed away during the July 2015 – July alternative skill development workshops are • Children of martyrs. 2017 period. Scholarships allocated to being organised free of charge for young 630 children according to the Ministry of people suffering social disadvantages for • Sent half of the TRY 1 million support Family and Social Policies will be allocated varying reasons. In painting, drama, dance, scheduled for 2017. with the leadership of Turkish Red Crescent photography, rhythm, pantomime, yoga, sign depending on the level of need at given language, and kitchen workshops, young As Vodafone Turkey Foundation, we will act schools. people can find the opportunity to develop to support new social projects in accordance their skills and artistic identities. with the prioritised needs of our country

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THEME “Sign Language” Mobile Vodafone Volunteers Dreams Academy: Disability Application Our voluntary activities constitute an START DATE Vodafone Turkey Foundation has executed important part of our social responsibility October 2008 the most comprehensive sign language projects and we believe that they contribute education application to facilitate some a lot to the development of our employees, OUR PARTNERS three million hearing impaired individuals to Vodafone Turkey and to society. We aim and their relatives through Dreams to include our employees in the projects AYDER Academy. This application was prepared we implement under the Vodafone Turkey Foundation within the scope of the Vodafone Volunteers Program and we UNDP also aim to improve our projects with their ideas and opinions. A total of 410 Vodafone Turkey employees have participated in our The Ministry of Development voluntary program to support our projects through the end of November 2017. Each year, we bring our Dreams Academy OUR OBJECTIVES students together and we celebrate World Volunteers’ Day. We paint pictures with our To support people with disabilities in disabled students and we accompany them breaking through social exclusion and in in a rhythm show. becoming active and productive through arts and culture.

TARGET GROUPS AND AUDIENCES WE HAVE REACHED

• People with physical, mental, hearing disability and visually impaired people. as courses under a certain curriculum and • Chronic disease groups it was a first in Turkey. With approximately 2,600 videos and a dictionary covering • Young people suffering from poverty 1,400 words, this application can be and deprivation downloaded to smartphones.

• Volunteers (youth from Turkey and abroad) As of November 2017, 4,601 attendees completed our workshops.

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Appendix

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About the Report

Scope refers to “Vodafone Turkey Group Companies”. Vodafone Turkey Group GRI 102-45 Companies involve all of the following companies that are included in the scope We are pleased to present you our seventh of consolidated financial statement: sustainability report in which we share our Vodafone Telekomünikasyon A.Ş., Vodafone environmental, social, economic and ethical Dağıtım Hizmetleri A.Ş., Vodafone Teknoloji practices and performance on the previous Hizmetleri A.Ş. (OKSİJEN), Vodafone Net fiscal period and our future plans and goals İletişim Hizmetleri A.Ş., Vodafone Holding with all of our stakeholders. A.Ş., Türkiye Vodafone Vakfı (Vodafone Turkey Foundation), Vodafone Bilgi ve We shaped the scope of our report based İletişim Hizmetleri A.Ş., Vodafone Elektronik on the topics material to our company and Para ve Ödeme Hizmetleri A.Ş. and Vodafone stakeholders that were determined through Mobile Operations Limited. All of the a materiality assessment. We put together companies above were included in the our report taking into account not only report unless otherwise stated. Regarding significance of economic, environmental Vodafone Mobile Operations Limited and social impacts of our company but also (Turkish Republic of Northern Cyprus), only influence on assessments & decisions of the financial data is included in the report. our key stakeholders, who are comprised communicate our plans for the future with of our customers, employees, regulatory all our stakeholders while we monitor our Our Solution Partners agencies, non-governmental organizations performance. Unless otherwise stated, all and society. information shared in this report pertains We carry out our fundamental processes to the fiscal year of 1 April 2016 - 31 March such as installation and management of In addition to the policies, practices and 2017. base stations with increasing support from performance in the previous fiscal year, we our solution partners. We obtain the energy also include our objectives for upcoming The expressions “Vodafone Turkey”, consumption data from our suppliers that years in the report. Hence, we transparently “our company” and “us” in this report are accountable for managing the assets we

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control, and reporting the performance of OUR VISION innovative and competitive international contractor companies on OHS. Our stores company with local roots admired by its and third party call centers also make up an Leading the digital transformation in Turkey. customers. important part of our network of solution providers. OUR MISSION GUIDELINES AND STANDARDS

GRI Standards Inspiring every individual in Turkey for a We used the following international better future through communication guidelines and standards as a basis while GRI 102-54 technologies. identifying the topics to be covered in the report: This year we published our seventh sustainability report. We prepared this • GRI Standards sustainability report in accordance with the “core” option of the GRI Standards. As • UN Women’s Empowerment Principles in previous years, we have successfully (WEPs) completed the GRI Materiality Disclosure Services which focuses on the information • 10 Principles of the UN Global Compact disclosed about the Materiality Assessment (UNGC) and Stakeholder Engagement, and confirms that disclosures in the report content We appreciate your input! and GRI content index are in line with the GRI Standards. Following the successful Your feedback on this report is valuable to completion, we received a customized GRI us. You are welcome to share your opinions Alignment Service Organization Mark that and suggestions with us via e-mail: we have placed on the first page of our GRI [email protected] content index.

UN Global Compact “Progress on Communication” OUR VALUES

This report is the second “Progress on We provide fast, high-quality, simple Communication” we published following our and reliable services while helping our voluntary signing of the UNGC in November customers enjoy opportunities in life 2015, and it contains our implementations and to realize their full potentials. We are aimed at the 10 principles of UNGC and our committed to being a customer- centric, support for the main goals of the UN.

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Our Material Topics and Key Stakeholders

GRI 102-42, GRI-102-43 EMPLOYEES

Our sustainability efforts focus on our most significant and material issues that we have INDUSTRY a high impact on, and these issues also guide us towards determining the content REPRESENTATIVES of this report. AND NGOS

We carried out our first comprehensive materiality assessment in 2012 and obtained independent assurance following the AA1000 Assurance Standard. We REGULATORY regularly review our stakeholders and BODIES material topics in line with the GRI Standards, local and global developments, and stakeholder feedback via various UNIVERSITIES dialogue platforms, as well as the strategies of the Vodafone Group and our company. These platforms allow us to keep up-to-date the list of our most material sustainable SOCIETY topics and develop our products and processes accordingly. LOCAL Our Key Stakeholders COMMUNITIES AND LOCAL GRI 102-40, GRI 102-42, GRI 102-43 GOVERNMENTS

Our stakeholders are groups that may impact or be impacted by our operations. The key SUPPLIERS stakeholders for Vodafone Turkey can be MEDIA found on the figure below. In the Stakeholder STORES Dialogue table below, we included the details about dialogue platforms established to communicate with our stakeholders and CUSTOMERS the topics covered on these platforms.

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Our Material Topics particular order). These are the topics that Our Suppliers: Throughout the report, we may affect our reputation and/or have a mention topics material not only for our GRI 102-46, GRI 102-47 high financial and operational impact on our company, but also for our suppliers. We business processes, and they are monitored reported information about and collected We follow the guidance of the “Four closely. from our suppliers such as; Principles for Defining Report Content” from the GRI Standards Guidelines to identify Quadrant B: We have relatively low • Implementing OHS practices our material topics, which are stakeholder impact on these topics but they are of high inclusiveness, sustainability context, importance for our stakeholders who want • Reducing energy consumption and materiality and completeness. In addition to be informed. implementing practices to reduce its to our survey of key internal and external GHG emissions stakeholders to identify material topics, we add to the list by also focusing on the global • Evaluating and auditing suppliers on material topics in the telecommunications their OHS, environmental and ethical sector, the telecommunications sector practices standards of Sustainability Accounting Standards Board, the Vodafone Group strategy and material topics, and our company’s current priorities and strategies. For example, we conducted a survey with the participation of Vodafone Turkey executives on the assessment of material topics as part of our review process.

This report covers environmental and social topics with high impact that were determined with the framework summarized above. The “Material Topics” figure reflects the results of our materiality analysis for our Quadrant C: Topics that are not a major operations in the 2016/2017 fiscal year. concern for all stakeholders, but that employees in particular believe may have a The definitions of different quadrants of the high impact on our corporate success. graph are as follows: Quadrant D: Relatively low impact topics Quadrant A: Topics that are material for compared to others for our company and both our company and stakeholders are stakeholders but are still included for listed in quadrant A of the graph (with no communication purposes.

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Quadrant A • Implementing business ethics and anti-corruption practices • Implementing OHS practices (Including employee and supplier practices) Quadrant B • Evaluating and auditing suppliers on their OHS, environmental and • Providing solutions that benefit the ethical practices environment and efficiency (E.g. IoT practices) • Empowering women economically • Increasing customer satisfaction • Contributing to employment and the economy • Offering solutions that enable secure internet • Implementing practices on customer and data privacy and mobile use for children and families. • Carrying out various diversity and inclusiveness activities for employees • Executing projects on technological literacy in society (Coders of Tomorrow Project) • Contributing to the economy via taxes B • Safeguarding digital rights and freedom (Providing access to public and freedom of speech) A• Provide accessibility solutions for all social groups (E.g. People with disabilities and low- income families) • Develop practices to reduce energy consumption and related GHG emissions

Quadrant D Quadrant C • Taking precautions to reduce paper use • Identifying and preventing abuses that threaten the company’s income, • Support entrepreneurship, creativity and image and reputation innovation • Making infrastructure investments to increase access to information and • Contributing to public policy communication technologies • Making access to quality basic healthcare • Looking out for employee satisfaction easier • Carrying out projects to educate the society on cell phones, masts and • Contributing to protecting the environment human health via waste management practices • Increasing agricultural efficiency by implementing digital technologies • Creating smart cities by implementing digital technologies Significance of issues for stakeholders Significance of issues for • Providing opportunities for further education and career development D for employeesC Significance of economic, environmental and social impact

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Dialogue with Our • We reach out to our stakeholders and • We shared information regarding our Stakeholders customers through the events that we telecom solutions for our corporate organize and participate in, where we customers and municipalities at the GRI 102-44 Exchange information and interact. Uludağ Economic Summit

We have continued our communication Examples of Topics Raised Our Employees with our stakeholders on various topics through different platforms with the goal of • We have carried the Customer Examples of Stakeholder Dialogue improving our sustainability practices and Satisfaction program to a higher level performance. We have continued to advance • We hold the People Survey every year. our cooperation with non-governmental organizations (NGOs) and representatives of • We regularly organize activities and the sector. Our dialogue processes with our practices to increase awareness among key stakeholders and the examples of topics our employees. shared are provided in the next table. • We learn about the opinions, Our Customers expectations and suggestions of our employees regarding their and our Examples of Stakeholder Dialogue company’s performance through annual channels and regular meetings, and take necessary actions. • Every year we hold customer perception and satisfaction surveys for our We hold surveys to learn about material corporate and individual customers, our • sustainability issues for our employees. products and services accordingly.

• We continuously establish direct Examples of Topics Raised communication with our customers with new products and advantageous through our call centres, sales channels, • We held an employee Satisfaction offers, and provided an advantage to the Vodafone Forum, and social media. Survey, which evaluated not only Vodafone customers on many issues employee satisfaction, but also our OHS such as ease of accessibility, quality of • We regularly hold meetings and and environmental performance. reception, utilization control and loyalty workshops with our corporate and programs. individual customers to learn about • During the orientation program we their opinions and expectations. provide for our new employees, we • We have emphasized the importance aim to increase their awareness and of digitalization in CEO Club meetings information on sustainability issues. in which we participated as the main sponsor.

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• With the participation of senior Regulatory Bodies Local Community and Local management, we have executed a Governments materiality survey which contributed to Examples of Stakeholder Dialogue the content of this year’s sustainability Examples of Stakeholder Dialogue report. • We establish dialogue with regulatory bodies on issues concerning our • We closely follow the developments Society industry and company and we regularly regarding base stations and health. provide information to these bodies We share the research of leading Examples of Stakeholder Dialogue through reports. institutions, such as the World Health Organization and the International In line with our transparency and • Cancer Research Agency, through our accountability principles, we regularly website. inform society through various media and platforms, including our sustainability report and mobile Examples of Topics Raised applications. • We maintain ongoing two-day dialogue Examples of Topics Raised by receiving the opinions of local communities and local governments • Through the corporate reputation especially about the base stations. survey, which involves our stakeholders from every walk of life, we evaluate the Our Suppliers improvement of our company regarding reputation and sustainability issues. Examples of Stakeholder Dialogue

• We share the press releases, videos, • Within the framework of Supplier info-graphics and commercials related Performance Management Program, we with our activities through http:// Examples of Topics Raised support our suppliers to develop their medyamerkezi.vodafone.com.tr. capacities in sustainability, quality and • We exchange opinions on issues performance. • We published the 2015/16 fiscal such as effective and goal-oriented year Vodafone Turkey sustainability implementation of competition policies Examples of Topics Raised report and shared it with our material and removing regulatory barriers against stakeholders. products and services that contribute to • At the Ecosystem Day event, we the overall welfare and development of informed our suppliers on recent society. developments in occupational health and safety, best practices and our approach to sustainability.

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Industry Representatives • We keep supported our store employees • We hold stakeholder engagement and NGOs* to develop their capabilities by workshops in regular intervals with the organizing training programs on various participation of opinion leaders, experts topics, including service quality and Examples of Stakeholder Dialogue and other stakeholders. customer relations. • We establish permanent cooperation Examples of Topics Raised with industry representatives and NGOs in line with our sustainability approach. • In the 2016/17 fiscal year, we sponsored various events such as Sustainable Brands, World Examples of Topics Raised Telecommunication Day, Information Security Conference, and we have • We establish continuous shared the practices of our company on communication with industry sustainability in these conferences with representatives and NGOs through our stakeholders. meetings, working groups, and visits; we cooperate for the development of our • We are planning to organize the fifth industry. stakeholder dialogue workshop in the 2017/18 fiscal year. Our Stores

* Our collaboration with non-governmental organizations Examples of Stakeholder Dialogue and industry representatives, and initiatives on which we are signatories are presented on page 13 of the Vodafone Turkey 2015-2016 Sustainability Report. • We get feedback from our stores through periodic satisfaction surveys and implement remedial actions.

• We support our stores for capacity enhancements. Opinion Leaders and Experts

Examples of Topics Raised Examples of Stakeholder Dialogue

• With the Green Office program initiated • We participate as speaker or sponsor in cooperation with WWF-Turkey, to the conferences on sustainability we have ensured more efficient use organized in our country and we of energy and natural resources at facilitate the mutual exchange of ideas selected stores. on this.

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Reporting Principles

Principles of Reporting relate to the Scope 1: Leased vehicles, F-gases used collection and calculation of greenhouse in air conditioners, fuel used in buildings, gas emission (GRI 305-1 and 305-2) and diesel and gasoline generators used in base energy consumption data (GRI 302-1 and stations in emergencies. 302-3) disclosed in this report. Sources of indirect greenhouse gas The methodology for calculating emissions are as follows: greenhouse gas emissions is “greenhouse gas operational data x greenhouse gas Scope 2: Electricity consumption in emission or removal factors”. Greenhouse our buildings and base stations. Energy gas emissions are calculated in accordance consumption from all buildings, switching with the Greenhouse Gas Protocol sites and data centres, base stations, methodology of the WRI/WBCSD. The company vehicle fleet and generators under boundaries of the company were identified the control of Vodafone Turkey based on the control approach and all Vodafone buildings, call centres, base Thereby, these data are also included in stations, switching sites, and data centres as the energy consumption data given in the well as greenhouse gas emissions resulting report. from generators and refrigerant gases were included in the inventory. Operational the IPCC. The network emission factor is Calorific values and tonne of oil equivalent boundaries are defined as scope 1 (direct) calculated by using the data provided by the (ToE) conversion factors were taken from and scope 2 (indirect). Turkish Electricity Transmission Company tables published in the “Directive for (TEİAŞ). Improving Efficiency of Energy Sources and In our calculations, CO2 equivalent factors Energy Use”, issued in the Official Gazette of CO2, CH4, N2O and HFCs (refrigerant Sources of direct greenhouse gas emissions on October 27th, 2011, numbered 28097. In gases) emissions are used and global are as follows: the conversion of energy units the following warming potential (GWP) coefficients were formulas were used: 1 kcal = 4.184 kJ, 1 GJ = taken from the 5th Assessment Report of 0.2777 MWh (1 MWh = 3.6 GJ). The annually

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updated Turkish Electricity Transmission and reporting that was prepared by the are aware of this necessity, but we have not Company data were used for the calculation World Resources Institute (WRI) and World been able to carry out calculations based of greenhouse gases originating from Sustainable Development Business Council on the market-based method since there is production of electricity. (WBSD). On January 20th, 2015, renewed no descriptive and confirmed information We have completed our work in accordance guideline for Scope 2 emissions states about Vodafone’s electric supply source. with global standards by following the that companies must report their Scope Thus, according to the Standard, the market- Greenhouse Gas Protocol (GHG Protocol) 2 emissions both with the market-based based emissions were considered to be the for measuring emissions, management method and the location-based method. We same as local-based emissions.

Energy Consumption and Greenhouse Gas Emissions

2014/15 2015/16 2016/17 Energy Consumption Fiscal Year* Fiscal Year* Fiscal Year** GJ GJ GJ Base Stations 1,312,789 1,430,689 1,554,382 Purchased Electricity 1,257,844 1,378,365 1,501,602 Generator (diesel and gasoline) 54,059 51,440 51,895 Renewable energy 886 884 885 Switching Sites and Data Centers 215,809 253,497 272,452 Purchased electricity 212,464 249,455 267,278 Generator (diesel and gasoline) 3,271 3,968 5,100 Renewable energy 74 74 74 Office Buildings (including call centers) 65,853 51,512 59,001 Purchased electricity 57,588 44,896 51,974 Generator (diesel) 887 865 992 Natural gas 7,378 5,751 6,035 Vehicle Fuels 47,891 50,698 50,117 Diesel 47,669 50,580 48,964 Gasoline 222 118 1,153 TOTAL 1,642,342 1,786,396 1,935,952

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2014/15 2015/16 2016/17 Greenhouse Gas Emissions (ton CO2-equivalent) Fiscal Year* Fiscal Year* Fiscal Year** Scope 1 2,103.0 19,217.2 14,606.0 Vehicles 3,608.1 3,820.1 3,118.0 F-gases 18,857.8 11,027.8 6,972.2 Fuel used in buildings 415.1 323.5 339.6 Generator (diesel + gasoline) 4,222.0 4,045.8 4,176.3 Scope 2 209,914.1 256,530.6 258,956.3 Electricity consumption in base stations 172,812.3 211,388.4 213,553.2 Electricity consumption in switching sites and data centers 29,189.9 38,256.9 38,011.5 Electricity consumption in Office buildings 7,911.9 6,885.3 7,391.6 TOTAL 237,017.1 275,747.8 273,562.3

* Energy and greenhouse gas emissions data for the 2014/15 and 2015/16 fiscal years was assured by the independent audit firm EY. You may find the relevant independent audit statements in Vodafone Turkey 2014/15 and Vodafone Turkey 2015/16 reports.

** Energy and greenhouse gas emissions data for the 2016/17 fiscal year was assured by the independent audit firm BSI. You may find the relevant independent audit statements in independent assurance statement section.

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Independent Assurance Statement

To the Top Management of Vodafone Pinciples of the verification service that we Telekomünikasyon A.Ş perform are as follows:

Executive Summary • Impartiality, The selected data of the energy consumption and carbon emission • Competence, which refer to the year ended 31.03.2017, contained by the Vodafone • Factual approach to decision making, Telekomünikasyon A.Ş Sustainability Report FY16/17 and detailed in Annex 1 has been • Openness, verified with limited assurance. • Confidentiality. Respective Responsibilities It is the responsibility of the Our verification audit based on limited top management of Vodafone assurance procedures to check whether Telekomünikasyon A.Ş to collect the Greenhouse Gas assertion is materially and prepare the necessary data for correct and the Greenhouse Gas data and verification review with high accuracy. information submitted to our verification The top management of Vodafone team is prepared in all material respects in Telefomünikasyon A.Ş is also responsible accordence with Annex 1. for the content of the Sustainability Report FY16/17 which refers to the selected data in The assurance engagement performed accordance with the criteria set out Annex 1. is fullyin compliance with the applicable independence and competency requirements as laid down in ISO14064-3- 2006 Specification with Guidance for the Validation and the Verification of Greenhouse Gas Assertion published by the International Organization for Standardization.

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This report, including the Opinion Methodology Used the Provision of Audit Statement, has been prepared for the top We conducted this limited assurance managers of Vodafone Telekomünikasyon engagement in accordance with ISO14064- A.Ş to assist their Sustainability Report 3:2006 published by ISO ( International FY16/17 referring to the Vodafone Organization for Standardization). Telekomünikasyon A.Ş’s energy consumption, carbon emission monitoring To perform this assurance work, we and control performance. have visited all locations and checkedall information submitted by Vodafone For the fullest extent permitted by law, we Telekomünikasyon A.Ş. do not accept or assume responsibility to anyone other than the top managers of Our reasonable procedure require from the Vodafone Telekomünikasyon A.Ş for our verification team to assess the followings: verification audit or this assurance report. • Inventory design, scope & boundary,

• Specific Greenhouse Gas, (GHG) activity and technology,

• Identification and selection of GHG sources, sinks or reservoirs,

• Quantification, monitoring and reporting, including relevant technical and sector issues,

• Situations that may affect the materiality of the GHG assertion, including typical and atypical operating conditions.

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The verifier of verification team have Opinion Statement expertise to evaluate the implications Based on the results of the verification audit of financial, operational, contractual we delivered according to our procedures, or other agreements that may affect the Greenhouse Gas assertion of Vodafone organization boundaries, including any legal Telekomünikasyon A.Ş reported in their requirements related to the GHG assertion. Sustainability Report FY16/17 is materially correct and is a fair representation of the data and information is prepared in accordance with the related international standard on Greenhouse Gas quantification, monitoring and reporting and to relevant national standards or practices available at the time verification audit performed.

BSI (British Standards Institution) BSI Group Eurasia Belgelendirme Hizmetleri Ltd. Şti.

Özlem Ünsal Managing Director

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Annex-1 Vodafone Telekomünikasyon A.Ş. Greenhouse Gas Emissions Inventory Summary Report

General Principles and Scope within the scope of Scope 3. Scope 1 and This report is the summary of Vodafone Scope 2 emissions are under the financial Telekomünikasyon A.Ş’s Energy and administrative control of Vodafone Consumption and Greenhouse GaS (GHG) Telefomünikasyon A.Ş, thus the Scope 3 Emission Report FY16/17, including emissions not included in the greenhouse the general principles of the calculation gas emissions inventory. methodologies and the GHG management. • Direct Greenhouse Gas Emissions: Greenhouse Gas Emissions and Activity Boundaries Vodafone Telekomünikasyon A.Ş.‘s direct Vodafone Telekomünikasyon A.Ş.’s greenhouse gas emissions are in three greenhouse gas emissions are in categories: 3 categories: - Greenhouse gas emissions sourced by the • Direct greenhouse gas emissions, stationary combustion, - Greenhouse gas emission sourced by the • Indirect energy greenhouse emissions, mobile combustion, - Other direct greenhouse gas emissions. • Other indirect greenhouse has emissions. • Energy Indirect Greenhouse Gas Emissions:

Direct greenhouse gas emissions are Vodafone Telekomünikasyon A.Ş.’s energy within the scope of Scope 1, energy indirect emission resource is electricity. indirect greenhouse gas emissions are within the scope of Scope 2 and other indirect greenhouse gas emissions are

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Greenhouse Gas Emissions Inventory Management of Uncertainties and Calculations Materiality Vodafone Telekomünikasyon A.Ş.’s The uncertainties can be caused by the Greenhouse Gas Emissions Inventory measurement devices, potential record calculations are based on mainly errors and deviations in calorific value and “Intergovernmental Panel on Climate Change lower - upper values of the fuels. (IPCC) 2006 Guidelines” Materiality is the sum of GHG inventory The calculation methodologies and emission uncertainties and negligibles, acceptances. factors are as follows: The company materiality has been calculated accordingly. • The “IPCC-2006 Guidelines for National Greenhouse Gas Inventories, Volume 2: Opinion Restatement Energy, Chapter 2: Stationary Vodafone Telekomünikasyon A.Ş.’s Combustion” is used to calculate the Greenhouse Gas Inventory FY16/17 is calculate the greenhouse gas emission materially correct and is a fair representation sourced by the mobile combustion. of the data and is prepared in accordance with the related international standard on • The “IPCC-2006 Guidelines for National greenhouse gas and to relevant national Greenhouse Has Inventories, Volume 2: standards or practices available. It has been Energy, Chapter 3: Mobile Combustion” agreed that the materiality is under 10%. is used to calculate the greenhouse gas emission sourced by the mobile combustion.

• In the reporting period, electricity emission factor for Turkey. TEIAS statistics has been used to calculate energy indirect greenhouse gas emissions.

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GRI Standards Content Index

GRI 102-55

Disclosures / Page Number(s) and GRI Standards Explanations UNGC GRI 101: Foundation 2016 Principles

General Disclosures Organizational Profile 102-1 Name of the organization Vodafone Telekomünikasyon A.Ş. 102-2 Activities, brands, products, and services Scope, p.96 Vodafone Plaza, Büyükdere Cad. No: 251, 102-3 Location of headquarters Maslak 34398, ISTANBUL

102-4 Location of operations Turkey

All shares of Vodafone Turkey Group of Companies are 102-5 Ownership and legal form owned by Vodafone Group Plc. 102-6 Markets served Turkey 102-7 Scale of the organization Scope, p.96 102-8 Information on employees and other workers Corporate Performance, p.8 Principle 6 102-9 Supply chain Supply Chain Integrity and Safety, p.76 During the 2016/17 fiscal year, there were no 102-10 Significant changes to the organization and its supply significant changes regarding size, structure, chain ownership, or supply chain. Vodafone supports the application of the European Commission’s framework for a precautionary approach 102-11 Precautionary Principle or approach as contained in the 2000 EC Communication on Precaution. 102-12 External initiatives Vodafone Turkey Sustainability Report 2015-2016, p. 13 102-13 Membership of associations Vodafone Turkey Sustainability Report 2015-2016, p.13

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Strategy Message from Vodafone Group CEO, p.4; Message 102-14 Statement from senior decision-maker from Vodafone Turkey CEO, p.6 Code of Ethics and Principles 102-16 Values, principles, standards, and norms of behavior Our Approach to Human Rights, p.56 Principle 10 Governance 102-18 Governance structure Our Sustainable Business Strategy, p.10 Stakeholder Engagement 102-40 List of stakeholder groups Our Key Stakeholders, p.98 We respect our employees’ right for collective Principles 102-41 Collective bargaining agreements bargaining. Our employees are not unionized. 1,2,3

102-42 Identifying and selecting stakeholders Our Material Topics, p.98; Our Key Stakeholders, p.98

102-43 Approach to stakeholder engagement Our Material Topics, p.98; Our Key Stakeholders, p.98

102-44 Key topics and concerns raised Dialogue with Our Stakeholders, p.101-103 Reporting Practise 102-45 Entities included in the consolidated financial statements Scope, p.96 102-46 Defining report content and topic Boundaries Our Material Topics, p.99-100 102-47 List of material topics Our Material Topics, p.99-100 102-48 Restatements of information There were no restatements. There are no significant changes in the 102-49 Changes in reporting Scope or Aspect Boundaries. 102-50 Reporting period 1 April 2016 - 31 March 2017 102-51 Date of most recent report 1 April 2016 - 31 March 2017 102-52 Reporting cycle Sustainability report is published annually. Corporate Relations Department: 102-53 Contact point for questions regarding the report [email protected] 102-54 Claims of reporting in accordance with the GRI Standards GRI Standards, p.97 102-55 GRI content index GRI Standards Content Index, p.112

102-56 External assurance Independent Assurance Statement, p.107-111

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Topic-Specific Standards GRI 200 Economic Standards Series GRI 201: Economic Performance 2016 Our Employees, p.16; Women First in Entrepreneurship 103-1 Explanation of the material topic Program, p.19-20; Youth Skills and Employment, p.46; and its Boundary Employment Creation, p.70; Our Contribution to the Economy, p.70; Taxes and Investments, s.71 GRI 103: Our Employees, p.16; Women First in Entrepreneurship Management 103-2 The management approachand its Program, p.19-20; Youth Skills and Employment, p.46; Approach components Employment Creation, p.70; Our Contribution to the 2016 Economy, p.70; Taxes and Investments, s.71 Our Employees, p.16; Women First in Entrepreneurship Program, p.19-20; Youth Skills and Employment, p.46; 103-3 Evaluation of the management approach Employment Creation, p.70; Our Contribution to the Economy, p.70; Taxes and Investments, s.71 Our Employees, p.16; Women First in Entrepreneurship 201-1 Direct economic value generated Program, p.19-20; Youth Skills and Employment, p.46; and distributed Employment Creation, p.70; Our Contribution to the Economy, p.70; Taxes and Investments, s.71 GRI 202: Market Presence 2016 103-1 Explanation of the material topic Women’s Involvement in Business Life GRI 103: and its Boundary and Equality in Opportunity, p.16-17 Management 103-2 The management approach Women’s Involvement in Business Life Approach and its components and Equality in Opportunity, p.16-17 2016 Women’s Involvement in Business Life 103-3 Evaluation of the management approach and Equality in Opportunity, p.16-17 202-1 Ratios of standard entry level wage by Women’s Involvement in Business Life gender compared to local minimum wage and Equality in Opportunity, p.16-17 GRI 203: Indirect Economic Impacts 2016 103-1 Explanation of the material topic Our Contribution to the Economy, p.70 GRI 103: and its Boundary Management 103-2 The management approach Our Contribution to the Economy, p.70 Approach and its components 2016 103-3 Evaluation of the management approach Our Contribution to the Economy, p.70

203-1 Infrastructure investments Taxes and Investments, p.71, Smart Cities, p.42-43 and services supported 203-2 Significant indirect economic impacts Our Contribution to the Economy, p.70

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GRI 205: Anti-Corruption 2016 Principle 10 103-1 Explanation of the material topic Combatting Bribery and Corruption, p.72 GRI 103: and its Boundary Management 103-2 The management approach Combatting Bribery and Corruption, p.72 Approach and its components 2016 103-3 Evaluation of the management approach Combatting Bribery and Corruption, p.72 205-1 Operations assessed for risks relatedto Combatting Bribery and Corruption, p.72 Principle 10 corruption 205-2 Communication and training about Combatting Bribery and Corruption, p.72 Principle 10 anti-corruption policies and procedures GRI 300 Environmental Standards Series GRI 302: Energy 2016 Principles 7,8,9 Our Sustainable Business Strategy, p.10; 103-1 Explanation of the material topic Our Energy Consumption and and its Boundary Greenhouse Gas Emissions, p.28 GRI 103: Our Sustainable Business Strategy, p.10; Management 103-2 The management approach Our Energy Consumption and Approach and its components Greenhouse Gas Emissions, p.28 2016 Our Sustainable Business Strategy, p.10; 103-3 Evaluation of the management approach Our Energy Consumption and Greenhouse Gas Emissions, p.28 302-1 Energy consumption within the organization Reporting Principles, p.104-105 Principles 7,8 Our Energy Consumption an 302-3 Energy intensity Principles 7,8 Greenhouse Gas Emissions, p.28 GRI 305: Emissions 2016 Principles 7,8,9 Our Sustainable Business Strategy, p.10; Our 103-1 Explanation of the material topic Energy Consumption and and its Boundary GRI 103: Greenhouse Gas Emissions, p.28 Our Sustainable Business Strategy, p.10; Our Management 103-2 The management approach Energy Consumption and Approach and its components 2016 Greenhouse Gas Emissions, p.28 Our Sustainable Business Strategy, p.10; Our 103-3 Evaluation of the management approach Energy Consumption and Greenhouse Gas Emissions, p.28 305-1 Direct (Scope 1) GHG emissions Reporting Principles, p.104-106 Principles 7,8

305-2 Energy indirect (Scope 2) GHG emissions Reporting Principles, p.104 Principles 7,8

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GRI 306: Effluents and Waste 2016 103-1 Explanation of the material topic Office Buildings and GRI 103: and its Boundary Other Environmental Applications, p.34 Management 103-2 The management approach Office Buildings and Approach and its components Other Environmental Applications, p.34 2016 Office Buildings and 103-3 Evaluation of the management approach Other Environmental Applications, p.34 Office Buildings and 306-2 Waste by type and disposal method Principle 8 Other Environmental Applications, p.34-35 GRI 308: Supplier Environmental Assessment 2016 103-1 103-1 Explanation of the material topic Ethical Purchasing, s.76 GRI 103: and its Boundary Management 103-2 103-2 The management approach Ethical Purchasing, p.76 Approach and its components 2016 103-3 Evaluation of the management approach Ethical Purchasing, s.76 308-1 New suppliers that were screened Supplier Performance Management, p.77 Principle 8 using environmental criteria 308-2 Negative environmental impacts in the Supplier Performance Management, p.77 Principle 8 supply chain and actions taken GRI 400 Social Standards Series GRI 401: Employment 2016 Principle 6 103-1 Explanation of the material topic Our People, p.57 GRI 103: and its Boundary Management 103-2 The management approach Our People, p.57 Approach and its components 2016 103-3 Evaluation of the management approach Our People, p.57

401-1 New employee hires and employee turnover Our People, p.57 Principle 6 GRI 403: Occupational Health and Safety 2016 Principle 1 103-1 Explanation of the material topic Occupational Health and Safety, p.63 GRI 103: and its Boundary Management 103-2 The management approach Our Occupational Health and Safety Policy, p.63 Approach and its components 2016 103-3 Evaluation of the management approach Management, p.67 403-2 Types of injury and rates of injury, Occupational Health and Safety, p.63; occupational diseases, lost days, and absenteeism, Principle 1 Supply Chain Integrity and Safety, p.76 and number of work-related fatalities

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GRI 404: Training and Education 2016 Principle 6 103-1 Explanation of the material topic Our Employees, p.46;Trainings Provided to and its Boundary Our Employees, p.60 GRI 103: Management 103-2 The management approach Our Employees, p.46; Trainings Provided to Approach and its components Our Employees, p.60 2016 Our Employees, p.46; Trainings Provided to 103-3 Evaluation of the management approach Our Employees, p.60 404-1 Average hours of training Our Employees, p.46; Trainings Provided to Principle 6 per year per employee Our Employees, p.60 404-2 Programs for upgrading employeeskills Our Employees, p.46; Trainings Provided to Principle 6 and transition assistance programs Our Employees, p.60

404-3 Percentage of employees receiving regular Our Employees, p.46; Trainings Provided to performance and career development reviews Our Employees, p.60

GRI 405: Diversity and Equal Opportunity 2016

Women’s Empowerment, p.16; Smart Village, p.37; 103-1 Explanation of the material topic Women's Involvement in Business Life and Equality in and its Boundary Opportunity, p.16; Our Human Resources Policy, p.57

GRI 103: Women’s Empowerment, p.16; Smart Village, p.37; Management 103-2 The management approach Women's Involvement in Business Life and Equality in Approach and its components 2016 Opportunity, p.16; Our Human Resources Policy, p.57

Women’s Empowerment, p.16; Smart Village, p.37; 103-3 Evaluation of the management approach Women's Involvement in Business Life and Equality in Opportunity, p.16; Our Human Resources Policy, p.57

Women’s Empowerment, p.16; Smart Village, p.37; 405-1 Diversity of governance bodies Women's Involvement in Business Life and Equality in Principle 6 and employees Opportunity, p.16; Our Human Resources Policy, p.57

Women’s Empowerment, p.16; Smart Village, p.37; 405-2 Ratio of basic salary and remuneration Women's Involvement in Business Life and Equality in Principle 6 of women to men Opportunity, p.16; Our Human Resources Policy, p.57

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GRI 414: Supplier Social Assessment 2016 103-1 Explanation of the material topic Ethical Purchasing, p.76; Field Assessments, s.77 GRI 103: and its Boundary Management 103-2 The management approach Ethical Purchasing, p.76; Field Assessments, s.77 Approach and its components 2016 103-3 Evaluation of the management approach Ethical Purchasing, p.76; Field Assessments, s.77 Principles 414-1 New suppliers thatwere screened Ethical Purchasing, p.76; Field Assessments, s.77 1, 2, 3, using social criteria 4, 5, 6, 10

414-2 Negative social impacts in the Principles Ethical Purchasing, p.76; Field Assessments, s.77 1, 2, 3, supply chain and actions taken 4, 5, 6 GRI 416: Customer Health and Safety 2016 103-1 Explanation of the material topic and its Mobiles, Masts and Health, p.73 Boundary GRI 103: Management 103-2 The management approach and its Mobiles, Masts and Health, p.73 Approach components 2016 103-3 Evaluation of the management approach Mobiles, Masts and Health, p.73

416-1 Assessment of the health and safety Mobiles, Masts and Health, p.73 impacts of product and service categories

GRI 418: Customer Privacy 2016

103-1 Explanation of the material topic Confidentiality of Information and and its Boundary Data Security, p.82-83 GRI 103: Management 103-2 The management approach Confidentiality of Information and Approach and its components Data Security, p.82-83 2016 Confidentiality of Information and 103-3 Evaluation of the management approach Data Security, p.82-83

418-1 Substantiated complaints concerning Confidentiality of Information and breaches of customer privacy and losses of Principle 1 Data Security, p.82-83 customer data

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Material topics that are not covered by the GRI Standards Providing solutions that benefit the environment and efficiency (Eg. IoT practices) Principle 8 103-1 Explanation of the material topic Smart Village, p.37; Energy Efficiency Solutions and its Boundary for our Customers, p.38 GRI 103: Management 103-2 The management approach Smart Village, p.37; Energy Efficiency Solutions Approach and its components for our Customers, p.38 2016 Smart Village, p.37; Energy Efficiency Solutions 103-3 Evaluation of the management approach for our Customers, p.38 Increasing customer satisfaction

103-1 Explanation of the material topic Society, s.19; Energy Efficiency Solutions for our and its Boundary Customers, p.38; Our Human Resources Policy, p.57 GRI 103: Management 103-2 The management approach Society, s.19; Energy Efficiency Solutions for our Approach and its components Customers, p.38; Our Human Resources Policy, p.57 2016 Society, s.19; Energy Efficiency Solutions for our 103-3 Evaluation of the management approach Customers, p.38; Our Human Resources Policy, p.57

Offering solutions that enable secure internet and mobile use for children and families 103-1 Explanation of the material topic Our Approach to Human Rights, p.56 GRI 103: and its Boundary Management 103-2 The management approach Approach Our Approach to Human Rights, p.56 and its components 2016 103-3 Evaluation of the management approach Our Approach to Human Rights, p.56 Executing projects on technological literacy in society (Coders of Tomorrow Project) 103-1 Explanation of the material topic Coders of Tomorrow Project, p.50-53; and its Boundary Smart Village, p.37 GRI 103: Management 103-2 The management approach Coding Tomorrow Project, p.50-53; Approach and its components Smart Village, p.37 2016 Coding Tomorrow Project, p.50-53; 103-3 Evaluation of the management approach Smart Village, p.37

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Safeguarding digital rights and freedom (Providing access to public and freedom of speech) Principle 1 103-1 Explanation of the material topic Our Sustainable Business Strategy, p.10; Early and its Boundary Rescue, p.22; Our Approach to Human Rights, p.56 GRI 103: Management 103-2 The management approach Our Sustainable Business Strategy, p.10; Early Approach and its components Rescue, p.22; Our Approach to Human Rights, p.56 2016 Our Sustainable Business Strategy, p.10; Early 103-3 Evaluation of the management approach Rescue, p.22; Our Approach to Human Rights, p.56 Provide accessibility solutions for all social groups Principle 1 (E.g. People with disabilities and low-income families) 103-1 Explanation of the material topic “Sign Language” Mobile Application, p.93 and its Boundary GRI 103: 103-2 The management approach Management “Sign Language” Mobile Application, p.93 Approach and its components 2016 103-3 Evaluation of the management approach “Sign Language” Mobile Application, p.93

Increasing agricultural efficiency by Principle 9 implementing digital technologies 103-1 Explanation of the material topic Smart Village, p.37 and its Boundary GRI 103: Management 103-2 The management approach Smart Village, p.37 Approach and its components 2016 103-3 Evaluation of the management approach Smart Village, p.37

Taking precautions to reduce paper use

103-1 Explanation of the material topic Stakeholder Opinion (İpek Selek), p.29-30; and its Boundary E-Billing, p.30 GRI 103: Management 103-2 The management approach Stakeholder Opinion (İpek Selek), p.29-30; Approach and its components E-Billing, p.30 2016 Stakeholder Opinion (İpek Selek), p.29-30; 103-3 Evaluation of the management approach E-Billing, p.30

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Contributing to public policy 103-1 Explanation of the material topic Our Contribution to Public Policy, p.71 and its Boundary GRI 103: Management 103-2 The management approach Our Contribution to Public Policy, p.71 Approach and its components 2016 103-3 Evaluation of the management approach Our Contribution to Public Policy, p.71

Making access to quality basic healthcare easier

103-1 Explanation of the material topic Health, p.39 and its Boundary GRI 103: Management 103-2 The management approach and its Health, p.39 Approach components 2016

103-3 Evaluation of the management approach Health, p.39

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