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.

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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

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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.