Without water, we don’t exist.

Our water resources are depleting rapidly.

None of us can ignore this.

Not as individuals, institutions, or countries.

This includes all of us at Tekfen.

To be able to drink a glass of water tomorrow,

we make a promise today.

Drop by drop.

Sustainability Special Issue

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Message from the President

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Bridging

Prosperity

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2019 Highlights

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Climate Crisis and Energy

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Innovation

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Employees and Society

Message from the

President

Dear Stakeholders,

The pandemic caused challenging economic conditions while enabling us to see the social and environmental problems in the society more clearly, proving that sustainability is a vital necessity and we need a sustainable recovery phase.

We are celebrating the Tekfen’s 64th anniversary this year. In order for Tekfen to walk confidently into the century ahead, we have no choice but to place sustainability at the center of all of our activities, and to build our strategies on this basis.

In our second sustainability report, we share examples of how our operations are shaped based on our vision, which we call “bridging prosperity”, as well as the steps we have taken to realize our sustainability vision. We also incorporated the opinions of our valuable stakeholders while identifying the main topics of our report.

While continuing our activities that contribute to the welfare and development of our employees and society, we will continue to be one of the founders of a sustainable future. As Tekfen Group we are happy to share with you the highlights from our second Sustainability Report.

Regards,

Cahit Oklap

President, Tekfen Group Companies

Bridging Prosperity

Tekfen’s sustainability vision is conceptually embodied in Tekfen’s motto, “Bridging Prosperity”. The primary goal of all economic activities is to increase social well-being and to improve the quality of life at the individual and societal level. Tekfen Holding’s core business activities, including contracting, agri-industry, and investment/service, directly overlap with the basic elements of social welfare, including infrastructure services, food, energy, and housing. Through its operations, Tekfen serves as a bridge that gives individuals access to the essential elements of a better life and prosperity while also paving the way to a sustainable future.

2019 Highlights

EBITDA (Consolidated million TRY)

Net Income for the Period (Consolidated million TRY)

Total Assets (Consolidated million TRY)

6,613

employees*

* The number of employees within the scope of reporting.

53%

blue collar employees

62%

local employment

96%

of 11,341 suppliers are local

Tekfen Holding increased total assets to 12,663 million TL with an increase of 5% compared to the previous year, and EBITDA to 1,921 million TL with an increase of 28%.

Women Directors Conference awarded Tekfen Holding the title of Women Empowered Board twice in a row, both in 2018 and in 2019 with 36% women in the Board.

Tekfen Holding is listed in BIST Sustainability Index since 2016, which includes companies in the Borsa Istanbul BIST 100 Index and shows high performance in corporate governance, environmental and social areas.

Tekfen held a Sustainability Workshop with the participation of sustainability managers of Tekfen Holding and group companies to share Tekfen's sustainability practices and learn from the experiences of other companies.

Tekfen Construction increased its quality performance from 88.5% in 2018 to 91.6%.

Toros Agriculture's Protect&Sustain Certificate which is the first to be given in Turkey by the International Fertiliser Association (IFA) in 2018 was promoted to the rank of “Excellence”.

Latest Developments in Strategic Drivers

Climate Crisis and Energy

Tekfen group companies take the necessary steps to tackle the climate crisis in their operations, or in the services and products they offer according to their sectors and geographies.

  • Tekfen Holding has been awarded an 'A (-)' grade in both the Climate Change and Water Security Programmes of the CDP (Carbon Disclosure Project) and became the only company rated 'A (-)', the highest grade in Turkey, in both.
  • A total of 226,702 MWh of renewable energy was generated from waste heat and solar energy. This amount is equivalent to the annual electricity consumption of approximately 65 thousand people.
  • Toros Agriculture acquired the ISO 50001 Energy Management System Certificate which is important in reducing business risks and increasing efficiency by managing energy effectively.

In line with the global trends Tekfen invests in innovative products and services that creates added value and benefits both society and the environment.

  • Three new companies joined the investments of Tekfen Ventures, the venture capital established to be a pioneer in the digital and innovative transformation of agriculture and construction sectors.
  • The number of R&D projects carried out in Agripark, which is one of the few technological agricultural centers in Turkey and draws upon Anatolia’s biodiversity to breed disease-free, high quality seeds and saplings, increased to 11.
  • Tekfen Agriculture allocated 8.5% of its revenues to research and product development projects.
  • Four new fertilizer types developed at the Toros Agriculture R&D Center, where a team of 28 people work, has been registered. New collaborations have been developed with universities within the scope of TUBİTAK, Horizon 2020 and InSuit programs.
  • Tekfen Construction developed and began implementing a new project, Tekfen 4.0. IoT to monitor all machinery, equipment, and vehicles, to monitor fuel efficiency, to control the training and competencies of operators and drivers, and to prevent accidents caused by equipment. The project was awarded by the International Pipelines and Offshore Contractors Association (IPLOCA) in the Health & Safety category.

Innovation

Employees and Society

As a multinational and diverse organization, Tekfen’s corporate culture includes offering its employees a healthy, safe, and efficient working environment and respecting fundamental human rights in all aspects of its business.

  • Tekfen provided 688,602 person*hours of OHS training to both employees and subcontractors to raise awareness about OHS, make OHS a part of Tekfen’s overall business culture, and to collectively achieve zero accident target.
  • Tekfen employees received a total of 58,596 person*hour of leadership programme, executive development program, and performance goal setting training to develop competencies and professional skills.
  • Tekfen and the Tekfen Foundation invested TRY 29,5 Million in donations, special projects, and sponsorships to various education, culture-art, sports, and social projects.

You can access Tekfen Holding Sustainability Report here which includes detailed approach, good practices, material issues and performance data.