Description of Principle |
Related Section/Page in the Annual Report |
A. General Principles |
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The Board of Directors (BoD) will determine the ESG priority issues, risks, and opportunities, and establish the relevant ESG policies accordingly. Internal guidelines, work procedures, etc. may also be developed to ensure effective implementation of these policies. The decision regarding these policies are taken and disclosed publicly by the BoD. |
Sustainability, page 60-61 |
The Company will set its strategy aligned with the ESG policies, risks and opportunities. It will set and publicly disclose short- and long-term targets conforming to the Company strategy and ESG policies. |
Sustainability, page 60-61 |
The Company will determine and publicly disclose the committees/units in charge of executing the ESG policies. The responsible committee/unit will report the activities carried out as per the policies annually, and in any case, within the deadline set for the public disclosure of annual reports within the BoD’s related guidelines. |
Sustainability, page 60-61 |
The Company will create and publicly disclose implementation and action plans in line with the short-and long-term targets set. |
Sustainability, page 60-61 |
The Company will define and announce ESG Key Performance Indicators (KPIs) comparatively by years. In the presence of verifiable data, KPIs will be presented together with local and international sectoral comparisons. |
Sustainability, page 60-87 |
The Company will disclose the innovation activities for improving the Company’s sustainability performance in relation to business processes or products and services. |
R&D, page 48-49 and Sustainability page 76-77 |
The Company will report, and publicly disclose, its sustainability performance, targets and actions at least annually. It will disclose information on its sustainability activities within the annual report. |
Sustainability, page 60-61 |
Essentially, the Company will use a direct and concise language in conveying material information so that stakeholders can easily understand the Company’s position, performance and development. Detailed information and data can be disclosed separately on its website, and separate reports directly fulfilling the needs of diverse stakeholders can be drawn up. |
page 60-61 |
The Company will exercise utmost care with respect to transparency and reliability. It will objectively explain all developments related to material issues in disclosures and reportings within the scope of balanced approach. |
page 60-61 |
The Company will specify which United Nations (UN) 2030 Sustainable Development Goals (SDGs) its activities are linked to. |
Sustainability, page 73. Links to Sustainable Development Goals are given in the Sustainability Report: http://irsustainability.tofas.com.tr/2020/tr/ |
The Company will make disclosures regarding the lawsuits filed and/or concluded against the Company for environmental, social and governance matters. |
Page 91-175 |
The Company will make public its sustainability performance measurements, if verified by independent third parties (independent sustainability assurance providers), and will endeavor to increase such verifications. |
Sustainability Principles Compliance Statement |
B. Environmental Principles |
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The Company will disclose its policies, implementations and action plans in relation to environmental management, and environmental management systems (known as ISO 14001 standard) and programs. |
Page 71 |
The Company will achieve compliance with laws and other applicable regulations on the environment, and will disclose the same. |
Page 78-79 |
The Company will specify the scope of the environmental report, reporting period, date of report, data collection process and restrictions regarding reporting conditions to be covered in the report that will be prepared in accordance with the Sustainability Principles. |
Page 71 |
The Company will disclose the highest-ranked individual in charge of environment and climate change at the Company, along with related committees and their respective roles. |
Page 72 |
The Company will disclose the incentives made available for the management of environmental matters, including achievement of targets. |
Page 72-79 |
The Company will explain integration of environmental matters in business targets and strategies. |
Page 71-79 |
The Company will disclose sustainability performances associated with work processes or products and services, along with improvement steps therefor. |
Page 73-75 |
The Company will explain how environmental issues are managed not just with respect to its direct operations but throughout the Company’s value chain, and how it integrates its suppliers and customers in its strategies. |
Page 85-85 |
The Company will disclose whether it is involved in policy-making processes in universal issues (sectoral, regional, national and international), environmental associations that it is a member of, its collaborations with related organizations and NGOs, and the tasks it undertakes, if any, and the activities it supports, if any. |
Page 62-63, 71-72 |
Environmental indicators (GHG emissions (Scope-1 (Direct), Scope-2 (Indirect from purchased energy), Scope-3 (Other indirect)), air quality |
Page 71-72 |
The Company will periodically report its environmental impacts comparatively in the light of energy management, waste and wastewater management, waste management and biodiversity implications. |
Page 71-72 |
The Company will disclose the standards, protocols, methodology employed for collecting and calculating data, along with the details of the base year. |
Page 71-72 |
The Company will disclose the status of environmental indicators for the reporting year in comparison to previous years (increase or decrease). |
Page 71-72 |
The Company will set, and disclose, its short- and long-term targets for mitigating its environmental impacts. These targets are recommended to be Science Based as suggested by the UN Climate Change Conference of the Parties (COP). The Company will also provide information about the progress achieved, if applicable, in the reporting period with respect to the targets it has set previously. |
Page 71-72 |
The Company will disclose its strategy and actions to combat the climate crisis. |
Page 72, 77-79 |
The Company will explain its programs or procedures for preventing or minimizing the potential negative impacts of the products and/or services it offers; it will also explain its actions for driving reduction of GHG emission quantities of third parties. |
Page 72, 77-79, 84-85 |
The Company will disclose the total number of actions taken, projects carried out and initiatives undertaken to mitigate its environmental impacts, along with the benefits/savings and cost savings derived on the same. |
Page 71-79 |
The Company will report its total energy consumption data (excluding raw materials) and discloses its energy consumption in terms of Scope-1 and Scope-2. |
Page 71-79 |
The Company will provide information about the electricity, heat, steam and cooling generated and consumed during the reporting period. |
Page 71-79 |
The Company will work towards increasing the use of renewable energy and transition to zero- or low-carbon electricity, and will explain these efforts. |
Page 75-78 |
The Company will disclose data on its renewable energy generation and consumption. |
Page 73 |
The Company will develop energy-efficiency projects, and disclose the quantity reduced in energy consumption and emissions enabled by these efforts. |
Page 77-79 |
The Company will report on the quantity of underground or overground water withdrawn, consumed, recycled and discharged, the resources, and procedures (total water withdrawal on the basis of resources, water resources affected by water withdrawal, and percentage and total volume of recycled and reused water etc.). |
Page 74 |
The Company will disclose whether its operations or activities are included in any carbon pricing system (Emissions Trading System, Cap & Trade or Carbon Tax). |
Page 78-79 and Sustainability Principles Compliance Statement |
The Company will disclose the carbon credits saved or purchased during the reporting period. |
Page 78-79 and Sustainability Principles Compliance Statement |
The Company will disclose the details if carbon pricing is applied at the Company. |
Page 78-79 and Sustainability Principles Compliance Statement |
The Company will specify all compulsory and voluntary platforms that it reports its environmental information to. |
Page 71-79 |
C. Social Principles |
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The Company will develop a Company Human Rights and Employee Rights Policy, which pledges full compliance with the Universal Declaration of Human Rights, ILO Conventions ratified by Turkey, and regulatory framework and legislation governing human rights and work life in Turkey. It will also make public the said policy, and the roles and responsibilities for its implementation. |
Page 53-57 |
The Company will secure equal opportunities in recruitment processes. In its policies, it will incorporate equitable workforce, improving working standards, women employment and inclusion (not discriminating on the basis of women, men, faith, language, ethnicity, age, disabilities, refugees, etc.), while looking out for the implications for the supply and value chain at the same time. |
Page 53-57 |
The Company will explain the measures taken throughout the value chain for protecting the rights of groups susceptible to certain economic, environmental, social factors (e.g. low-income groups, women, etc.) or for securing minority rights/equal opportunities. |
Page 53-57 |
The Company will report on progress in relation to actions for preventing and remedying discrimination, inequalities, human rights violations, and forced labor. It will explain the actions to prevent child labor. |
Page 53-57 |
The Company will disclose investments made in employees (training, development policies), employee compensation, fringe benefits granted, the right to unionize, work-life balance solutions and talent management. It will establish the mechanisms for resolution of employee complaints and labor disputes, and determine conflict resolution processes. The Company will regularly disclose the activities for ensuring employee satisfaction. |
Page 53-57 |
The Company will establish and publicly disclose occupational health and safety policies. It will disclose the measures adopted for protection against workplace accidents and for protecting occupational health, along with statistical data on accidents. |
Page 80-81 |
The Company will establish and publicly disclose personal data protection and data security policies. |
https://www.tofas.com.tr/KisiselVerilerinKorunmasi/Documents/Tofas_KVK_Islenmesi_Politikasi_Koc_V3.pdf |
The Company will establish and publicly disclose a code of ethics (including business, work conduct, compliance processes, advertising and marketing ethics, clear disclosure efforts etc.). |
Page 87 |
The Company will disclose its activities and initiatives in relation to social investments, social responsibility, financial inclusion and access to finance. |
Page 53-57 |
The Company will organize information meetings and training programs for employees about ESG policies and implementations. |
Page 77 |
The Company will carry out its activities in relation to sustainability taking into consideration the needs and priorities of all its stakeholders (employees, customers, suppliers and service providers, public institutions, shareholders, society and NGOs, etc.). |
Page 60-63 |
The Company will develop and publicly disclose a customer satisfaction policy regarding customer complaints handling and resolution. |
Page 86 |
The Company will maintain continuous and transparent communication with stakeholders; it will disclose with which stakeholders it communicates for what purpose, about which topic and how often, as well as the progress achieved in sustainability-related activities. |
Page 60, 61 |
The Company will publicly disclose the international reporting standards it has embraced (Carbon Disclosure Project (CDP), Global Reporting Initiative (GRI), International Integrated Reporting Council (IIRC), Sustainability Accounting Standards Board (SASB), Task Force on Climate-related Financial Disclosures (TCFD) etc.). |
Page 74-79 and http://irsustainability.tofas.com.tr/2020/tr/ |
The Company will publicly disclose the institutions or principles that it is a member or signatory of (Equator Principles, UN Environment Programme Finance Initiative (UNEP-FI), UN Global Compact (UNGC), UN Principles for Responsible Investment (UNPRI) etc.), and the international principles it embraces (such as International Capital Markets Association (ICMA) Green/Sustainability Bonds Principles). |
Page 62-63 |
The Company will spend concrete efforts to qualify for inclusion in Borsa İstanbul (BIST) Sustainability Index and international sustainability indices (Dow Jones Sustainability Index, FTSE4Good, MSCI ESG Indices etc.). |
Page 4, 72, 78, 79 |
D. Governance Principles |
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The Company will spend maximum efforts to achieve compliance with all Corporate Governance Principles, as well as compulsory ones under the Capital Markets Board of Turkey (CMB) Corporate Governance Communiqué No. II-17.1. |
Declaration of Corporate Governance Principles and Compliance Report |
The Company will take into consideration the sustainability issue, environmental impacts of its operations and associated principles when setting its corporate governance strategy. |
Page 60-64 |
The Company will take the necessary actions for achieving compliance with the principles related to stakeholders as stipulated in the Corporate Governance Principles and for strengthening communication with stakeholders. It will seek stakeholders’ opinions for determining the sustainability-related measures and strategies. |
Page 60-64 |
The Company will work on the sustainability issue through social responsibility projects, awareness activities and training, and on heightening awareness of the importance of this issue. |
Page 63-70 |
The Company will spend efforts to become a member of sustainability-related international standards and initiatives and to contribute to related studies and efforts. |
Page 60-64 |
The Company will disclose its anti-bribery and anti-corruption policy and programs, as well as those on the tax integrity principle. |
Page 87 |
