The first sustainability report published by Tekfen Tekfen Holding Sustainability Report 2018 Holding Co., Inc. (Tekfen), presents information about Tekfen’s sustainability priorities and performance. Strategic material issues identified in light of stakeholder values and company strategies provided the framework for this report. Tekfen’s goal is to continue keeping its stakeholders transparently informed on an annual basis about its sustainability vision, targets, and performance. This report has been prepared in accordance with the GRI Standards: Core option and it presents information supplied by Tekfen Holding, the Tekfen Contracting Group (Tekfen Construction, Tekfen Engineering, Tekfen Manufacturing), the Tekfen Agri- industry Group (Toros Tarım), the Tekfen Real Estate Development Group (Tekfen Real Estate, Tekfen Tourism), and Tekfen Insurance.1 Although this report covers the period 1 January 2018 to 31 December 2018, it also includes data from previous years so that comparisons may be made. Data sets other than those pertaining to environmental performance cover Tekfen operations in all countries. In order to ensure compliance with Carbon Disclosure Project (CDP) climate change and water reporting standards, environmental-performance data cover the group’s Turkish operations. Tekfen Tarım is included in the 2018 environmental performance data set. Kültür Mahallesi, Budak Sokak No: 7 Tekfen Sitesi A Blok 34340, Ulus – Beşiktaş / İstanbul, Turkey Please send any opinions and/or suggestions you may P: (90.212) 359 33 00 F: (90.212) 359 33 05 have about our sustainability reporting to www.tekfen.com.tr [email protected] Tekfen Holding Sustainability Report 2018 www.tekfen.com.tr Ticari Sicil No: 111233 2018 TEKFEN 1 Bridging Prosperity Contents The first sustainability report published byTekfen Holding Co., Inc. Bridging Prosperity 6 (Tekfen), presents information about Tekfen’s sustainability priorities and Foreword 8 Message from the Chairman of the Board of Directors 10 performance. Strategic material issues identified in light of stakeholder Message from the Group Companies President 12 values and company strategies provided the framework for this report. About Tekfen Holding 16 Tekfen’s goal is to continue keeping its stakeholders transparently informed Tekfen Holding Sustainability Milestones 18 Sustainability Vision 22 on an annual basis about its sustainability vision, targets, and performance. Operational Roots 30 This report has been prepared in accordance with the GRI Standards: Core Economic Performance 30 Corporate Governance 34 option and it presents information supplied by Tekfen Holding, the Tekfen Risk Management 36 Contracting Group (Tekfen Construction, Tekfen Engineering, Tekfen Business Ethics and Compliance 36 Manufacturing), the Tekfen Agri-industry Group (Toros Tarım), the Tekfen Customer Loyalty 38 Customer Feedback 38 Real Estate Development Group (Tekfen Real Estate, Tekfen Tourism), and Operational Excellence 42 Tekfen Insurance.1 Although this report covers the period 1 January 2018 to 31 December 2018, it also includes data from previous years so that Strategic Drivers 46 Climate Change and Energy 46 comparisons may be made. Climate Change Management 48 Natural Resource and Waste Management 54 Data sets other than those pertaining to environmental performance cover Protecting Biodiversity 58 Innovation 61 Tekfen operations in all countries. In order to ensure compliance with R&D and Innovation Culture 65 Carbon Disclosure Project (CDP) climate change and water reporting Digitalisation 65 standards, environmental-performance data cover the group’s Turkish Employees and Society 70 Talent Management 70 operations. Tekfen Tarım is included in the 2018 environmental Employee Development and Satisfaction 71 performance data set. Occupational Health & Safety 74 Social Investments 79 Please send any opinions and/or suggestions you may have about our Appendix 86 sustainability reporting to [email protected]. Performance Indicators 86 Stakeholder Communication Methods 92 Awards & Recognitions 93 1 These companies account for about 92% GRI Content Index 95 of Tekfen Holding’s consolidated turnover. 2 TEKFEN 2018 GRI 102-45 2018 TEKFEN 3 Sustainability As a deep-rooted company with more than six decades of experience whose motto is “The future belongs to those who build it”, Tekfen is an essential part of the foundation of a sustainable and prosperous future. 4 TEKFEN 2018 2018 TEKFEN 5 Bridging Prosperity Bridging Prosperity As Tekfen, we have more than employee talent management, and technological change. We focus on six decades of experience with things that will create value for our country and for our world. We may roots that run wide and deep. not be doing all these in direct contact with people but we are bridging Our group consists of such prosperity through each of our business lines. strong companies as Tekfen Holding, Tekfen Construction, For example, we have a fundamental impact on sustainable agriculture and Toros Tarım. Striving to through fertilisers, seeds, seedlings, saplings, and fruits that contribute to achieve the very best in better nutrition for everyone. whatever they do, our companies have but a single We have a fundamental impact on countries’ growth and development aim. Build through Tekfen Construction by building roads, bridges, and factories. That aim is a sustainable future and it is a direct corollary of the well- We have a fundamental known axiom that the future belongs to those who build it. impact on the quality of people’s lives through Tekfen Sustainability means making sure that you remain continuously Real Estate by constructing productive, that your productivity is supportable in the future as well. It eco-friendly homes and means making more efficient use of economic, social, and environmental buildings. resources. It means striving to make the world in which we live better not just today but also tomorrow. We have a fundamental impact on the future through We are keeping a close watch Tekfen Foundation by Live on our world as it is being providing educational transformed by such scholarships that help young people to be the best they can be. megatrends as climate change, rapid population growth, In other words we strive to be an essential part of the foundation of a urbanisation, and sustainable and prosperous future. That foundation must be strong so digitalisation. We are that whatever is built upon it can be strong too. And that is the best Feed continuously mindful of such possible summing-up of the mission that Tekfen has given itself as it issues as eco-awareness, advances on its “Bridging Prosperity” and sustainibility journey. workplace health and safety, 6 TEKFEN 2018 2018 TEKFEN 7 Bridging Prosperity Foreword Here at Tekfen, we have been mindful of and diligent Esteemed friends of Tekfen, as indispensable elements of my professional about the sustainability-related issues of ethical behaviour, employee welfare, social wellbeing, and environmental health ur world’s natural environment career and personal endeavours. Rather than ‘‘ is confronted by an increasingly approaching a problem by blaming others or ever since the company’s very first day of life. greater level of damage. Vital waiting for “government” to “do natural resources such as soil, something”, I have always chosen to ask water, air, plant and animal myself “What can I do?” Efforts that serve ’’ life, and biodiversity are all the wellbeing of nature however have always Osuffering from levels of pollution, depletion, and been the ones closest to my heart. destruction that surpass systems’ ability to renew themselves by far. Speaking on my own behalf, I believe that people and nature can coexist in peace, that Life on our planet is threatened not just by the growth can be achieved while also being destruction of nature and ecosystems but also by eco-friendly, and that caring for the natural rapid population growth and by developed world is an important part of doing business. countries’ excessive consumption and Nor am I alone in this conviction: my wastefulness. Problems like desertification, partners Berker and Akçağlılar believed it water stress, climate change, and food security too and gave it their own support as well. are no longer dreamed-up scenarios: they are Here at Tekfen we have always believed in realities. While all of us have a responsibility to the value of ecology-centred economics–in be aware of and to deal with such threats, a eco-economics if you will–and we have consequence of that awareness is that companies always conducted our activities so as to be at which serve as society’s economic engines are peace with nature. especially obliged to behave carefully, respectfully, and responsibly towards our planet It gives me great satisfaction to see that so and the localities and communities of which many of the values that we have upheld as they are a part in the conduct of their Tekfen ever since the beginning are now operations. being taken up by other companies as well under the heading of what is being referred Here at Tekfen we have been mindful of and to as “sustainability” today. Some of the diligent about the sustainability-related issues of principles and values that we have always ethical behaviour, employee welfare, social regarded as tenets of our unwritten wellbeing, and environmental health ever since constitution have been institutionalised as the company’s very first day of life. Working internationally-accepted standards and that together with Tekfen’s other two founding is something that has my heartfelt support. partners, the late Feyyaz Berker and Necati So it is with this in mind that I thank Akçağlılar, we not only championed many everyone who had a hand in the preparation professional organisations but also spearheaded of this Tekfen sustainability report and I countless social, cultural, and environmental offer my best wishes that it will be only the initiatives and likewise supported NGOs with first of many more to come. similar aims. Very truly yours, Nature and the environment are two Ali Nihat Gökyiğit fundamental issues to which I have dedicated Founding Partner & Honorary Chairman myself.