The Sustainability Policy of Tofaş is a coherent document that deals with social, economic, ethical and environmental governance, is rooted in stakeholder engagement, and takes into account stakeholder satisfaction and expectations.

The main pillars of Tofaş’s sustainability policy consist of the tenets of the United Nations Global Compact, to which one of its principal shareholders Koç Holding is a signatory as well as Koç Holding’s own corporate social responsibility approaches on the one hand and of Stellantis’s sustainability and corporate social responsibility perspective on the other.

A SUSTAINABLE AND VALUE-CREATING MANAGEMENT MODEL

Tofaş’s corporate sustainability policy is dealt with within the framework of business models that take an integrated approach and are based on strategies that are mindful of a sustainable future. Tofaş addresses sustainability and social responsibility issues in the context of their social, environmental, and economic dimensions. The company’s fundamental priority is to create a management model which can constantly be improved and create value.

The Tofaş Corporate Sustainability Policy is informed by the need to elucidate the company’s responsibilities towards all Tofaş stakeholders everywhere and not just those living in the vicinity of the Tofaş plant. Thus is the company equally mindful of both sustainability and corporate social responsibility issues when dealing with its stakeholders.

The company’s CEO and senior executives are responsible for:

• Identifying and managing strategic goals;
• Ensuring the operability of risk management, early warning, and control systems;
• Determining corporate goals;
• Ensuring that corporate governance principles are complied with and that compliance performance and results are achieved as expected;

The Corporate Governance Committee, the Audit Committee, and the Risk Detection & Risk Management Committee, all of which report directly to the Tofaş Board of Directors, play an important role in the effectiveness of the board’s activities. The duties of the Nomination Committee and the Remuneration Committee may also be carried out by the Corporate Governance Committee. The Board of Directors has overall responsibility for the conduct of risk management processes at Tofaş while the Audit Committee and the Risk Detection Committee are responsible for the fulfillment and execution of risk-management processes as required by applicable laws and regulations. Corporate risk strategies are determined in line with reports submitted to the Board of Directors.

The environmental, social, and corporate governance aspects of the Tofaş Corporate Sustainability Policy are rooted in the tenets of:

• Effectively managing risks and constantly improving all processes;
• Abiding by “Zero-Accident” principles in matters pertaining to occupational health and safety;
• Improving the company’s performance and production efficiency;
• Encouraging active employee participation and fostering open communication;
• Making efficient use of energy while protecting environmental balances and natural resources;
• Adhering to a sustainable environmental management policy that is grounded in national environmental laws and regulations, applicable environmental standards, and the best available technologies for dealing with such matters;
• Ensuring information security and business continuity in the conduct of all operations;
• Complying with the requirements of national and international laws and regulations;
• Managing stakeholder relations transparently and with common sense;
• Ensuring continuity in customer satisfaction;
• Increasing stakeholder knowledge and community awareness of climate change issues;
• Improving suppliers’ own sustainability practices,
• Behaving transparently when dealing with the public at large on matters involving sustainable environment policies and practices;
• Making stakeholders aware of the company’s corporate social responsibility activities, strategies, objectives, and priorities;
• Making adherence to ethical values, combating corruption, and all other corporate governance principles part of the company’s corporate culture.

The company’s corporate governance structure, risk management, business ethics and anti-corruption rules, sustainability management, and stakeholder engagement approaches are all matters of concern when dealing with governance and sustainability issues.

Besides efforts aimed at the deployment and ongoing conduct of corporate governance activities within the company, all due attention is also given to ensuring that the company’s external stakeholders are likewise involved in achieving the same aims.

In keeping with this, ensuring the sustainability of all of the company’s corporate activities when treating all stakeholders equally, disclosing information responsibly, and abiding by corporate governance practices is one of the company’s fundamental objectives.

Tofaş’s sustainability policy addresses the company’s management of social, ethical, and environmental issues. This policy embodies an integrated approach which is rooted in stakeholder participation and which takes stakeholders’ expectations and satisfaction into account. The development and continuity of both sustainability and social responsibility attitudes and practices are achieved within the framework of the company’s corporate vision and the kinds of corporate activities that the company’s stakeholders prefer.

It is a matter of importance to Tofaş that the management, improvement, and oversight of the company’s corporate, social, and environmental impact processes and its management, social, and environmental performance be audited and that the results of these audits be shared with all of the company’s stakeholders. Having been developed in line with this approach, Tofaş’s corporate sustainability policy is overseen at the Board of Directors level, with related issues being assessed and reported on by committees that are responsible to the board itself. The results of these audits are included and published in each year’s sustainability report.

Stakeholder Communication

STAKEHOLDER GROUP	CHANNEL & FREQUENCY
Employees	Polls & surveys (at various intervals); Training activities, Tofaş Ethical Principles, Internal communication platforms (continuous - company bulletin screens, TofaşGO intranet); Tofaş Suggestions & Rewards System (immediate); OHS committees, Working groups & committees (at varying intervals); Performance management & career progression meetings, Social activities (at least twice a year); Management meetings, Communication meetings, Annual reports, Sustainability reports, Environment Day, Worklife Survey (once a year)
Principal Shareholders	General assembly meetings, Annual reports, Sustainability reports (once a year); Board of Directors meetings (as required / at least four times a year); Financial performance reports (four times a year); Material event disclosures (as required)
Minority Shareholders	Investor presentations, One-on-one meetings (as requested); General assembly meetings, Annual reports, Sustainability reports (once a year); Board of Directors meetings (as required / at least four times a year); Financial performance reports (four times a year), Material event disclosures (as required)
Dealers	One-on-one meetings (as requested); Dealership conventions, Annual reports, Sustainability reports (once a year); Dealer Portal (continuous); Dealership training programs (continuous); Customer satisfaction surveys (once a year)
Suppliers	One-on-one meetings (as requested); OHS committee meetings (once a month); Annual reports, Sustainability reports (once a year); Tofaş Suppliers’ Code of Ethics (continuous); Dealer Portal (continuous); Training & development programs (continuous), Tofaş Suppliers’ Summit (once a year)
Product End-Users	Product labels & user manuals, Marketing & communication activities (continuous); Automotives fairs & shows (periodic); Annual reports, Sustainability reports (once a year)
Local Communities	Communications System, Community projects, Charitable donations & sponsorships (as requested); Information meetings (as required); Annual reports, Sustainability reports (once a year)
Sectoral Actors	Meetings & discussions, Projects and initiatives (as requested); Automotives fairs & shows (periodic); Annual reports, Sustainability reports (once a year)
Local Governments	Meetings & discussions (as requested); Annual reports Sustainability reports (once a year)
Public Agencies & Organizations	Meetings & discussions (as requested); Information reporting (at varying intervals); Audits & inspections (at various intervals / unannounced); Annual reports, Sustainability reports (once a year)
Non-Governmental Organizations	Memberships (continuous); Working group, committee & board memberships (periodic); Joint projects & initiatives, Meetings & discussions (as requested), Annual reports, Sustainability reports (once a year)
Universities & Academicians	Tofaş scholarship & internship resources, Academic congresses & seminars (continuous); R&D project partnerships, sponsorships & support; Academic research & publication support; Events and organizations; Meetings & discussions (as requested); Annual reports, Sustainability reports (once a year)
Employees’ Families	Information programs (continuous); Tofaş in-house publications (three times a year), Social activities (at least twice a year), Environment Day (once a year)
Opinion Leaders	Opinion leader meetings & discussions (as requested), Annual reports, Sustainability reports (once a year); Factory visits
Media	Interviews & talks (as requested); Meetings & discussions (several times a year); Press statements, Material event disclosures (as required); Annual reports, Sustainability reports (once a year)

 

Corporate Memberships

Bursa Industrialists and Businessmen’s Association (BUSIAD)	Board of Directors and Specialization Group Memberships
Bursa Chamber of Commerce and Industry (BTSO)	Assembly and Committee Membership
Demirtaş Industrial Park (DOSAB)	Board of Directors and Training Committee Memberships
Demirtaş Industrial Park and Businessmen’s Association (DOSABSİAD)	Membership
DENİZTEMİZ-TURMEPA	Membership
Foreign Economic Relations Council (DEİK)	Italy Business Council Board Membership
The Confederation of Italian Entrepreneurs Worldwide (CIIM EurAsiaMed)	Board Membership
Climate Platform (REC Turkey)	Membership
İstanbul Chamber of Industry (İSO)	36th Group Occupational Committee and Assembly Membership
Italy Business Council	Membership
Italian Chamber of Commerce	Representation
Automobile Distributors’ Association (ODD)	Board of Directors and Committee Memberships
Automobile Industry Association (OSD)	Board of Directors, Committee, and Working Group Memberships
Advertisers’ Association (RVD)	Membership
Union of Chambers and Commodity Exchanges of Turkey (TOBB) Automotive Industry Assembly	Chairman of Board of Directors and Membership
Turkish Industry and Business Association (TÜSİAD)	Membership and Working Group Memberships
Foreign Trade Association of Turkey (TURKTRADE)	Membership
Turkey Quality Association (KalDer)	Membership
Turkish Metal Industrialists’ Association (MESS)	Membership
Turkey Personnel Management Association Bursa Branch (PERYÖN)	Membership
TÜYİD Turkish Investor Relations Society	Membership
Uludağ Exporters’ Associations Automotive Exporters’ Association (OIB)	Vice Chairman of Board of Directors
Foreign Capital Association (YASED)	Vice Chairman of Board of Directors, Board of Directors and Committee Memberships; Automotive and Sub-Industry Working Group Chairmanship

 

Tofaş, projelerin etki alanını artırmak ve uygulanabilir çözümler geliştirmek için öncelikle çalışan, bayi ve tedarikçileri olmak üzere tüm paydaşlarını çevresel ve sosyal sorunların çözümüne katkıda bulunmaları için teşvik etmektedir.

As a way of enhancing a project’s effectiveness and encouraging practical-solution development, Tofaş encourages its own employees, dealers, and suppliers as well as other stakeholders to play a role in dealing particularly with its environmental and social aspects.

DONATIONS & SPONSORSHIPS

Believing fundamentally that contributing to society is one of the duties of a responsible corporate citizen, Tofaş regards charitable donations and sponsorships as an important means of supporting social wellbeing in localities where it carries out its operations. A Donations & Sponsorships Policy setting out standards, principles, and rules governing Tofaş’s charitable donations and sponsorships that went into effect as of 5 March 2021 may be viewed at https://tofas.com.tr/en/Sustainability/Policies/.

CORPORATE SOCIAL RESPONSIBILITY

Believing that social vigor is the most essential element of business world success, Tofaş focuses on social responsibility projects capable of supporting social development multidimensionally, of contributing to the national economy, and of creating added value for society as a whole. Manifesting its contributions to society along multiple axes, Tofaş undertakes long-term projects that invest in future generations, promote inclusiveness and diversity, and protect the cultural heritage.

Tofaş’s efforts on behalf of social responsibility are grounded in United Nations Sustainable Development Goals as guided by the needs, expectations, and priorities of the localities in which they are undertaken. Tofaş monitors the progress of all projects that it undertakes in light of measurable medium and long-term targets that it sets for them.

As a way of enhancing a project’s effectiveness and encouraging practical-solution development, Tofaş encourages its own employees, dealers, and suppliers as well as other stakeholders to play a role in dealing particularly with its environmental and social aspects. To the same end, it also enters into strong collaborations with NGOs, international agencies and organizations, universities, local governments, and private individuals with expertise in the project’s subject matter.

Tofaş regards employee voluntarism as an essential element of its CSR attitudes and approaches. The company communicates with its employees in order to increase their digital-transformation, innovation, agility, environmental-sustainability, and social-utility awareness with a particular emphasis on improving their skills and competencies in such matters. It encourages employees to club together as volunteers not only to play an active role in a variety of social-responsibility undertakings but also to develop socially-beneficial projects through in-house intrapreneurship programs. Tofaş will be further detailing its employee-volunteerism strategy in 2022. It has also committed itself to having at least 20% of its employees voluntarily taking part in socially-beneficial activities by 2030.