SUMMARY OF OUR PERFORMANCE AND GOALS

Our country has started to experience the consequences of climate change.

Overwhelming heat waves, drought, diminishing water sources, strong rains and floods indicate the changes in the climate. Scientists predict that Turkey is in one of the geographies to be affected at most. The situation is similar in the other parts of the world: The strong hurricanes and tornados affecting USA and the Far East, floods in Europe and the living and geographical conditions of Africa getting tougher every year.

The responsibility of banks and financial services companies lies within managing the environmental risks regarding the global climate change initiatives and taking active role in the transition of low carbon economy and clean production techniques. TSKB, with its continuously expanding renewable energy portfolio clearly embraces its responsibility working for our country, our people and the world...

TSKB is determined to achieve its goals with its stakeholders.









2008-2009 semi-annual goals 2008-2009 semi-annual performance Our goals for the next reporting period
Environment and Sustainable Banking Sustainable Banking

 

 

 

 

 

 
To expand our renewable energy portfolio and maintain our sector leadership based on the number of projects The total number of renewable energy projects financed by TSKB is 80.

 
TSKB aims to expand its renewable energy portfolio in terms of quantity and proportion in the total credit portfolio in 2010 and after.
To expand our energy efficiency project portfolio The total number of energy efficiency projects financed by TSKB in its first year of inclusion in the product line in 2009 is 3. TSKB aims to finance total of 10 energy efficiency projects by the end of 2010.
To expand our environmental investments project portfolio TSKB has financed 18 environment investment projects in the reporting period. TSKB aims to increase this number in 2010 as Turkey intensely needs environmental infrastructure investments in the mid and long term.
To manage an environment sensitive portfolio and to develop environment sensitive investment products TSKB issued Clean Energy Fund in 2009 and undersigned a unique social responsibility project. The Bank has offset carbon foot prints (calculated over Turkey’s average) of 348 fund participants by the Gold Standard Carbon Credit that it purchased from the voluntary carbon market. The aim of TSKB is to increase the number of environment sensitive products and services and to be the leading bank.
To reach international finance resources TSKB kept assuring the long term finances needed by its sustainable banking mission through reaching the international resources. TSKB aims to provide long term finance opportunities for its clients with the optimum conditions especially on renewable energy, energy efficiency and APEX lending of the international markets.
Environment To be a carbon neutral bank* TSKB achieved to be carbon neutral in 2009. TSKB’s aim is to maintain its carbon neutral identity in 2010 and after.
To reduce our carbon footprint by 5% in two years** Carbon footprint of TSKB is reduced by 17.6% from 2008 1st half to 2009 1st half.

This rate will be improved till the end of 2009 as a result of the renewable energy used by the Bank.
TSKB aims to reduce its carbon footprint by 5% in 2009-2010 foreseeing this to be reached easily as a result of 2009 semi-annual achievements.

TSKB will continue its electricity and natural gas saving efforts to reduce its carbon footprint.
To use renewable energy TSKB started using renewable energy in all its buildings on June 1, 2009. TSKB aims to keep using renewable energy in all its buildings except its branch in Bahrain.
To expand internal capacity regarding climate change

 
TSKB continuously develops its internal capacity regarding climate change.

TSKB shared its updated Environment Policy with public in line with its new responsibilities and renewed mission on March 25, 2009.
TSKB aims to improve its competencies and to support investments to ease the transition to low carbon economy in Turkey.

TSKB aims to improve Environment Risk Evaluation Tool (ERET) in 2010.
To maintain ISO14001 standard TSKB has successfully passed the continuity audits on January 10, 2008 and December 19, 2008. The first 3 year term of ISO 14001certification will be completed on December 19, 2009.

The Bank aims to pass the second term certification process and gain its new 3 years certification.

 
To follow all the developments globally and locally regarding climate change and to trace the results of Copenhagen Climate Conference TSKB systematically traces all the developments and each step taken globally regarding climate change and follows the global developments and actively participates voluntary initiatives organized by NGOs. TSKB aims to closely follow and consider the general results of The Copenhagen Climate Conference in December 2009 and their impacts on Turkey.
Corporate Governance and Compliance To fully comply with laws, corporate governance principles and ethical principles TSKB acted in full compliance with laws, corporate governance principles and ethical principles during the reporting period. TSKB’s aim is to maintain its level of “zero mistake/ corruption/ complaint”
To complete its corporate governance rating TSKB has been given its first corporate governance rating during the reporting period. TSKB’s aim is to maintain the highest corporate governance rate in the sector and strengthen the weaknesses placed in the first report.
To prevent laundering proceeds of crime and financing of terrorism

 

 
TSKB has fully adopted the compliance regulations to prevent Laundering Proceeds of Crime and Financing of Terrorism and thereby has implemented necessary control alarms and other mechanisms in its business processes. TSKB’s aim is to maintain its “zero case” level.
Social Contributions Human Resources

 
To continue providing occupational and personal development trainings

 
TSKB has provided 17.7 hours of technical and personal development training per capita in the first half of 2009. TSKB’s aim is to advance and continue technical and personal development training programs

 
To increase the number of trainings on environment

 
TSKB has provided various environment awareness trainings during the reporting period. TSKB aims to increase the hours of environmental trainings of its human resources in the next reporting period.
To maintain diversity The ratio of female employees of TSKB is 57% with 40% holding top manager positions. TSKB’s aim is to maintain and improve the gender diversity in its human resources.
Social Responsibility

 

 
To improve and continue Environment is Our Priority project.

 

 
TSKB continued to improve Environment is Our Priority project through various activities and sponsorships in environmental platforms. TSKB aims to form different platforms to increase the overall awareness on environment in Turkey through the social responsibility projects.
To complete cevreciyiz.tv project Cevreciyiz.tv, with its rich content is launched on November 23, 2009 and met with its audience. TSKB’s aim is to improve the first environment-related video portal of Turkey cevreciyiz.tv

* Please see TSKB Carbon Neutralization Project
** Within the context of TSKB Carbon Neutralization Project and reduction of carbon footprint, the goals, improvements and measures taken regarding electricity, natural gas, water and paper consumption are given in detail in a table.



GRI QUALIFICATION


On January 5, 2009, Global Reporting Initiative (GRI) confirmed TSKB’s sustainability report’s compliance with G3 Guidelines and qualified it as Application Level C.

TSKB is a social stakeholder of GRI and supports GRI Guidelines. GRI Guidelines basically sets out the principles for sustainability reporting and promote transparency and accountability in economic, social and social performance.

Further information on GRI is available at www.globalreporting.org.



GRI INDICATORS
GRI Indicator Title of the Section Notes
Strategy and Analysis
1.1 CEO’s statement Assessment of the CEO  
CORPORATE PROFILE
2.1 Name of the reporting organization About this report  
2.2 Products, services and brands Sustainable banking in TSKB See also www.tskb.com.tr
2.3 Operational structure TSKB in a nutshell, Sustainable banking in TSKB, Environmental journey of TSKB See also www.tskb.com.tr
2.4 Location of head office TSKB in a nutshell See also www.tskb.com.tr
2.5 Countries of Operation GRI index TSKB operates mainly in Turkey. The Bank has also a branch in Bahrain.
2.6 Nature of ownership and legal form TSKB in a nutshell See also www.tskb.com.tr
2.7 Markets served TSKB in a nutshell  
2.8 Scale of the organization Headlines from our economic, environmental and social performance
2.9 Changes during reporting period GRI index There has not been any change during the reporting period.
2.10 Awards received Awards and recognition  
REPORT PARAMETRES
Report profile
3.1 Reporting period About this report  
3.2 Most recent previous report GRI index The report covering the period 2008- 2009/QII is the first sustainability report published by TSKB.
3.3 Reporting cycle About this report TSKB will publish its sustainability reports once in one and a half years.
3.4 Contact point Contact See also www.tskb.com.tr
Reporting scope and boundary
3.5 Defining the report content About this report  
3.6 Boundary of the report About this report  
3.7 Specific limitations of the boundary About this report  
3.8 Basis for reporting on joint ventures About this report The performance of the joint ventures is excluded from the content of the report.
3.10 Restatements GRI index The report covering the period 2008-2009/QII is the first sustainability report of TSKB.
3.11 Significant changes GRI index The report covering the period 2008-2009/QII is the first sustainability report of TSKB.
GRI indicators
3.12 GRI index GRI index  
GOVERNANCE, COMMITMENTS, and ENGAGEMENT
Governance
4.1 Governance structure Corporate governance and compliance in TSKB See www.tskb.com.tr
4.2 Function of CEO Corporate governance and compliance in TSKB See www.tskb.com.tr
4.3 Independent board members Corporate governance and compliance in TSKB See www.tskb.com.tr
4.10 Evaluation of performance of highest governance body TSKB’s relations with its stakeholders, Human resources and business environment in TSKB  
Stakeholder engagement
4.14 Stakeholder groups TSKB’s relations with its stakeholders  
4.15 Identification of stakeholder groups TSKB’s relations with its stakeholders  


GRI PERFORMANCE INDICATORS
  Indicator Content Title of the Section Notes
ECONOMIC PERFORMANCE INDICATORS
  Economic performance

CORE

EC1 Direct economic value Highlights from our economic, environmental and social performance See also TSKB annual report on www.tskb.com.tr
EC2 Financial implications due to climate changes Sustainable finance  
EC3 Defined benefit plan obligations   See TSKB annual report on www.tskb.com.tr
EC4 Significant financial assistance received from government GRI performance indicators TSKB does not get any type of financial assistance or aid from the government.
Environmental Performance Indicators
  Materials

CORE

EN1 Materials used by weight or volume Developments on managing environmental impacts It covers consumption of paper.
EN2 Recycled materials Developments on managing environmental impacts It consists of waste paper.
Energy
EN3 Direct energy consumption Developments on managing environmental impacts  
EN5 Energy saved Developments on managing environmental impacts  
Water
EN8 Total water withdrawal Developments on managing environmental impacts  
Emissions, effluents, and waste
EN16 Greenhouse gas emissions Developments on managing environmental impacts  

ADD

EN18 Initiatives to reduce greenhouse gas emissions and reductions achieved. The Environmental Journey of TSKB TSKB finances renewable energy and energy efficiency projects which contribute to the reduction of Turkey’s CO2 emissions. Details of these projects are given on page 29.
  Products and services

CORE

EN26 Initiatives to mitigate environmental impacts of products and services, and extent of impact mitigation. Sustainable finance (New loan facilities such as the REL II credit from World Bank and CTF loan)  
Compliance
EN28 Incident of non-compliance GRI performance indicators There was not such an incident in TSKB during the reporting period.
  Transport

ADD

EN29 Significant environmental impacts of transporting products and other goods, and materials used for the organization’s operations, and transporting members of the workforce Environmental journey of TSKB TSKB has reported its employees’ CO2 emissions in the fragment of employees’ transportation.
SOCIAL PERFORMANCE INDICATORS
  Employment

CORE

LA1 Breakdown of workforce Human resources and business environment in TSKB  
Occupational and health safety
LA7 Rates of injury/ absenteeism GRI performance indicators In the reporting period, there were not any incidents of death or injury. As the level of absenteeism was so low to consider in the reporting time, absenteeism is not noted in the report.
  Training and Education
CORE LA10 Training Human resources and business environment in TSKB  

ADD

LA11 Skills management Human resources and business environment in TSKB  
LA12 Employees receiving regular performance and career development reviews Human resources and business environment in TSKB In the reporting period, 90% of TSKB employees’ performance was evaluated.
  Diversity and Equal Opportunity
CORE LA13 Breakdown by gender Human resources and business environment in TSKB  
LA 14 Ratio of basic salary of men to women by employee category. GRI performance indicators Because the salaries depend on many variables such as longitude of the employment, age and type of job we cannot report a proper insight of ratio on salaries.
  Human rights performance indicators
  Non-discrimination
CORE HR4 Total number of incidents of discrimination GRI performance indicators There were not any incidents of discrimination in TSKB during the reporting period.
  Society performance indicators
  Corruption
CORE SO4 Actions taken in response to incidents of corruption GRI performance indicators There were not any incidents of corruption in TSKB during the reporting period.
  Compliance
CORE SO8 Non-monetary sanctions for non-compliance with laws and regulations GRI performance indicators In the reporting period, there were not any non-monetary sanctions for non-compliance with laws and regulations.
  Product responsibility performance indicators
  Marketing communications
ADD PR7 Incidents of non-compliance with regulations and voluntary codes concerning marketing communications, including advertising, promotion, and sponsorship GRI performance indicators There was not such an incident in TSKB during the reporting period.
  Customer privacy
ADD PR8 Total number of substantiated complaints regarding breaches of customer privacy and losses of customer data GRI performance indicators In the reporting period, there were not any complaints delivered to TSKB.
  Compliance
CORE PR9 Monetary value of significant fines for non-compliance with laws and regulations concerning the provision and use of products and services GRI performance indicators In the reporting period, there were not any significant fines for non-compliance with laws and regulations concerning the provision and use of products and services.