Sustainability Report 2019 Technology for life, hope for the future Table of contents Turkcell Sustainability Report 2019 | 2 Our sustainability achievements in 2019 4 Message from the Chairman of the Board 10 Message from the CEO 12 About the report 14 1. Corporate governance 15 2. Creating social value 3. Our interaction with with stakeholders 35 the environment 55 1.1 About Turkcell 16 1.2 corporate profile: Vision & mission and target 17 2.1 Social investment 36 3.1 Energy management and opposition with climate change 57 1.3 Partnership structure and senior management 18 2.2 Public health 43 3.2 Water management 63 1.4 Operational and financial information 19 2.3 Turkcell Academy for social development 44 3.3 Waste management 64 1.5 Turkcell sustainability strategy 23 2.4 Creating social value with public collaboration 47 3.4 Our environmental value chain 66 1.6 Exemplary corporate citizenship and business ethics 28 2.5 Sponsorships 48 1.7 Agile risk and crisis management 32 2.6 Transparent stakeholder interaction 51 2.7 Partnerships 54 Table of contents Turkcell Sustainability Report 2019 | 3 4. Our productive Turkcell family 68 6. Pre-eminent digital services & 8. Effective and secure content innovation 95 management 113 4.1 Being a strong and agile team (employment) 69 4.2 Equal opportunity, inclusiveness and diversity 73 6.1 Technology leadership and digitalisation 96 8.1 Data privacy and security 114 6.2 Pre-eminent digital services 100 4.3 Employee happiness 74 8.2 Cyber security 115 6.3 Techfin solutions 101 4.4 Employee health and safety (ohs) 78 8.3 Responsible content management 116 6.4 Being a digital solution partner 102 4.5 Turkcell academy 80 6.5 Digital customer experience 105 4.6 Talent management and young talents 83 6.6 Digital business culture transformation 9. Value-oriented, responsible 4.7 Digital remote working experience 86 at turkcell 107 supply chain 119 6.7 Patents 108 9.1. Effective and transparent purchasing applications 123 9.2. Green supply chain management 125 5. Human happiness-oriented 7. Effective financial accessible services 87 management 109 9.3. Supporting local suppliers 126 9.4. Public sector, operator and supplier partnerships 5.1 Customer experience orientation 88 7.1 Economic performance 110 128 5.2 Customer safety and satisfaction 90 7.2 Financial risk management 112 5.3 Inclusion and accessibility of our services 92 7.3 Access to long-term and sustainable financing 112 Appendix 1: GRI content index table 139 Appendix 2: UNGC progress table 143 Our sustainability achievements in 2019 Turkcell Sustainability Report 2019 | 4 Establishing an autonomous structure by adopting a holistic approach in compliance with the affiliated local and international capital market legislation to which the company is affiliated An exemplary Corporate Citizenship identity with our business ethics and transparent communication practices A total of 1,403 hours of training Received “Turkey Ethics Award” by on risk-based prioritization in the Ethical Values Center Association compliance with the affiliated (EDMER) for the 3rd consecutive local and international capital year since its inception market legislation Corporate governance Our sustainability achievements in 2019 Turkcell Sustainability Report 2019 | 5 UNDP BCTA Providing service to 2 Video thousand hearing impaired UN WEP Call customers per month Whiz Kids Project - Representation in Center Access to free artificial the GSMA Board of Participation in initiatives such as United intelligence, robotics Directors for the 3rd time Nations Development Program, Business and space science Call to Action, United Nations UN trainings for more My Gem Inside - Women Empowerment Principles than 50,000 talented Special education students and free Digital Intelligence classes for children Women Developers of the Future training opportunities Project - Educational with autism which Platform - Training for 640 women and mobilization to employment of test specialist women for all students through reached over 40,000 100 prepare our children mobile applications students through mobile and web platform. for the digital world application to equip them digital citizenship skills, access to 50,000 students and their families Creating social value with stakeholders Our sustainability achievements in 2019 Turkcell Sustainability Report 2019 | 6 Recycle into Education Project – Donating the revenue generated from the recycled electronic devices we collect with the techno waste boxes in our stores to TEGV Protection of around 500 thousand trees by preventing paper use via our Dergilik application ISO 50001 ISO 14064 Goal to meet our electricity needs Modem Renewal Project - renewal of Contribution to circular economy The first mobile operator to obtain ISO entirely from our modem group products which are by offering companies the 50001 Energy Management System renewable sources no longer used by our customers, repair opportunity to rent mobile phones Standard and ISO 14064 Corporate by 2030 them if needed before offering them to with the device leasing project Greenhouse Gas Emissions Calculation Goal to be customers based on demand started in 2019 and Reporting Certificate carbon neutral by 2050 Our interaction with the environment Our sustainability achievements in 2019 Turkcell Sustainability Report 2019 | 7 9.3 billion unique interaction the Apprenticeship Program – 35 32% voluntary participation of 115 million employees in 2019. Participants Female employee customers rate were able to realize their potential, and have the opportunity to get to know other units better and empathize through their way of doing business 9.3 billion unique interaction with our 35 million customers Reverse Brain Drain Project – Welcoming 5 new teammates into our Productive Turkcell Family The most loved in 2019 800 million telecommunications Our big Productive Turkcell transactions per month in Internet speed reaching operator with our fiber Family with 5,455 Digital Operator app 10 Gbps in Turkey infrastructure employees Our productive Turkcell family Human happiness-oriented accessible services Our sustainability achievements in 2019 Turkcell Sustainability Report 2019 | 8 5G 25.1 billion TL revenue and Energy savings 3.2 billion TL net profit based 1,263 of approximately 531 on consolidated financials R&D employees 9.2 million TL new patent annually by using applications environmentally friendly solutions in infrastructure, software and business Powerful mobile processes as well as via infrastructure software features that ready for 5G provide savings based transition “Sustainability on the traffic density Linked Loan” agreement Pre-eminent digital services & innovation Effective financial management Our sustainability achievements in 2019 Turkcell Sustainability Report 2019 | 9 93% domestic supplier ratio “Leadership Award” and “Internet of Things More than 1,100 Cyber Security Champion” Security customers award winning IoT applications Effective & secure content management Value-oriented, responsible supply chain Message from the Chairman of the Board Turkcell Sustainability Report 2019 | 10 Our Esteemed Stakeholders, Towards the end of 2019, the world was expecting a awareness that respects people, the environment and better new year, however, 2020 started as a difficult nature while meeting the changing and increasing year for everyone both economically and socially. demands and needs of our customers. While doing Although Turkey performed comparably better than so, we do not compromise on our sustainability many other countries in this process economically and approach that treats people, the environment and the health-wise, many people from different corners of economy as a whole to leave a better future for our the world lost their jobs and the people they love. children. In such periods, companies have as great This year, in the latest Global Risk Report published responsibilities as governments. In order to overcome by the World Economic Forum (WEF), issues related possible crises in the future rapidly and with ease, to climate change rank first on the list of top risks During this difficult period, as Turkey’s Turkcell, companies must take action along with governments. that the world will face in the next 10 years in terms we stand by our Country with our strong of impact and likelihood. While leading the digital infrastructure and technology. We will continue The global crisis that started with the COVID-19 transformation necessitated by the pandemic process, outbreak creates great opportunities as well as we are working hard to make the business strategies working with our nation to overcome the challenges for many sectors. In order to make of both our company and our customers more challenges we face in the upcoming period. the most of these opportunities, we act with an sustainable. Message from the Chairman of the Board Turkcell Sustainability Report 2019 | 11 As Turkcell, we are aware of our responsibility as part of our sustainability strategy framework to increase social welfare and tackle environmental problems along with facilitating economic development. While meeting the increasing and changing needs As it has been for 26 years, we aim to base our In 2019, I would like to thank our customers, in this period, also called as the “new normal”, we future social responsibility projects, investments shareholders, investors, employees and all our use our products and services developed with our and sponsorship activities on a foundation that will stakeholders