SUSTAINABILITY

Approaching all of its operations from the standpoints of their social, environmental, and economic dimensions, a fundamental Tofaş priority is to adhere to a constantly-improving, value-creating management model.

CORPORATE SUSTAINABILITY

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.

Approaching all of its operations from the standpoints of their social, environmental, and economic dimensions, a fundamental Tofaş priority is to adhere to a constantly-improving, value-creating management model.

The Tofaş Sustainability Policy is implemented in such a way as to demonstrate the company’s accountabilities towards all stakeholders both in the locality of its plant and throughout the country. Sustainability approaches and practices are dealt with coherently and with the engagement of all Tofaş 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;
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;
Complying with the requirements of national and international laws and regulations;
Improving the company’s performance and production efficiency;
Abiding by “Zero-Accident” principles in matters pertaining to occupational health and safety;
Ensuring information security and business continuity in the conduct of all operations;
Making adherence to ethical values, combating corruption, and all other corporate governance principles part of the company’s corporate culture.
Encouraging active employee participation and fostering open communication;
Making efficient use of energy while protecting environmental balances and natural resources;
Improving suppliers’ own sustainability practices,
Ensuring continuity in customer satisfaction;
Managing stakeholder relations transparently and with common sense;
Increasing stakeholder knowledge and community awareness of climate change issues;
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;

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.

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.

PRIORITIZATION ANALYSIS

As required by the AA1000 Stakeholder Engagement Standard, Tofaş first asks internal and external stakeholders to identify what they consider priority issues and then classifies those issues as “Low”, “Medium”, or “High” based on the responses it receives.

Priority issue	What is Tofaş doing about it?	Associated SDG
Climate change	Tofaş has developed management mechanisms to identify climate-related risks and to plan and take necessary action in the most effective way possible within the overall framework of its corporate sustainability strategy. To this end, the Tofaş Board of Directors closely monitors climate change-related risk-management and action-plan developments and practices and plays a leading role in such matters. The company likewise measures performance effectiveness and keeps a close and detailed watch on whether or not climate change-related targets are being met.
Gender equality	Tofaş believes that equality in workforce participation in is one of the most decisive contributors to social progress. In line with this, Tofaş encourages women to join the workforce and focuses on increasing the percentage of women among its newly-hired personnel. The company also strives to improve the working conditions of its existing female employees.
Energy efficiency	Tofaş is aware that all improvements in energy efficiency and reductions in emissions that it incorporates into its production processes are entirely under its own control and that such improvements and reductions are the way for it to have the most immediate impact. For this reason, energy efficiency and emissions reduction are two of Tofaş’s key environmental-management priorities. Tofaş fulfills its responsibility to help mitigate climate-change risks by steadily reducing its energy consumption and emissions each year.
Employee skills & employability	Tofaş demonstrates the value it places in its employees through talent and performance management practices whose aim is to improve its employees’ personal and professional/occupational skills.
Water management	Tofaş engages in efforts to ensure that water is used productively; manages water-use and waste-water processes in the most effective way possible; strives to minimize amounts of water that are used in the conduct of its operations; seeks to constantly improve its water-use practices in various ways; periodically reviews and analyzes water-use practices so as to ensure the continuity and sustainability of water resources.
Occupational health & safety	Tofaş adheres to world-class, proactive, and lean workplace-safety approaches when addressing occupational health & safety issues; aims to foster a sustainable occupational health & safety culture embraced by employees who behave safely in safe workplaces and constantly improves that culture; seeks to protect all of its human resources from physical and/or health impairments everywhere on company-owned premises; sets and commits itself to sustainably achieving zero work-related accident and illness targets.
Supply chain management	Tofaş takes a business-partner approach when dealing with its suppliers; interacts with them on the basis of mutual openness and trust; grounds its relationships with them in the principle of sustainable competition. Believing that a supply chain that is financially robust, operationally eco-aware, and reliable from the standpoints of production quality and continuity will strengthen its own business success and likewise acknowledging its suppliers as the most important links in its supply chain, Tofaş therefore strives to contribute to their continuous development.
Human rights	Human rights-related issues at Tofaş are managed by the Tofaş Ethics Committee, which reports directly to the Tofaş Board of Directors. Tofaş under no condition either tolerates or permits any violation of employee rights, or deriving any benefit from child, forced, or compulsory labor, or any practice that is of a discriminatory nature. Tofaş promotes adherence to the same approach to human rights throughout its value chain.
Stakeholder communication	Aware that in order for its sustainability approach to have an impact on all of its business processes, the company and its employees, dealers, and suppliers must all work collaboratively, Tofaş therefore takes action accordingly. In line with the strategic importance that it attaches to stakeholder engagement, Tofaş regards transparency and responsibility as critical issues.

STAKEHOLDER COMMUNICATION

STAKEHOLDER GROUPS	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 (periodic); 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	Chair 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 Chair of Board of Directors
Foreign Capital Association (YASED)	Vice Chair of Board of Directors, Board of Directors and Committee Memberships; Automotive and Sub-Industry Working Group Chairship