1.1

Statement from the most senior decision-maker of the organization.

Fully

CEO’s Assessment

1.2

Description of key impacts, risks, and opportunities.

Fully

CEO’s Assessment;
Profile / Mission, Vision, Goals;
Corporate Governance / Risk Management at TSKB

2.1

Name of the organization.

Fully

TSKB - Industrial Development Bank of Turkey

2.2

Primary brands, products, and/or services.

Fully

Profile / Products and Services of TSKB

2.3

Operational structure of the organization, including main divisions, operating companies, subsidiaries, and joint ventures.

Fully

TSKB in brief; TSKB’s subsidiaries; TSKB’s corporate governance structure

2.4

Location of organization’s headquarters.

Fully

İstanbul, Turkey

2.5

Number of countries where the organization operates, and names of countries with either major operations or that are specifically relevant to the sustainability issues covered in the report.

Fully

TSKB operates mainly in Turkey. The Bank has also a branch in Bahrain.

2.6

Nature of ownership and legal form.

Fully

Profile / TSKB in brief;
Formed in 1950 TSKB is a publicly listed company on the İstanbul Stock Exchange (ISE ticker symbol: TSKB)

2.7

Markets served (including geographic breakdown, sectors served, and types of customers/beneficiaries).

Fully

Profile / TSKB in brief

2.8

Scale of the reporting organization.

Fully

Performance / Value Creation / Economic Impact / Principal Economic Indicators
At end-2010, the total number of people employed in banking services at TSKB headquarters and branches was 297. The Bank has three branches, and provides a full array of banking products and services.
For products and services offered by TSKB please also see Profile / Products and Services of TSKB.

2.9

Significant changes during the reporting period regarding size, structure, or ownership.

Fully

There has not been any change during the reporting period.

2.10

Awards received in the reporting period.

Fully

Performance / Awards&Recognitions

3.1

Reporting period (e.g., fiscal/calendar year) for information provided.

Fully

TSKB’s sustainability reporting is on a continuous basis. This document covers 2nd Half 2009 to end 2010 performance.

3.2

Date of most recent previous report (if any).

Fully

2009

3.3

Reporting cycle (annual, biennial, etc.)

Fully

18 months

3.4

Contact point for questions regarding the report or its contents.

Fully

Hülya Kurt, TSKB Engineering Manager & Environmental Management Representative

3.5

Process for defining report content.

Fully

Appendices / About this Report;
TSKB’s report content is defined by the GRI index and the issues material to the business as identified by key stakeholders who will use the report, including employees, community members, non-governmental organizations, and the media.

3.6

Boundary of the report (e.g., countries, divisions, subsidiaries, leased facilities, joint ventures, suppliers). See GRI Boundary Protocol for further guidance.

Fully

Appendices / About this Report

3.7

State any specific limitations on the scope or boundary of the report (see completeness principle for explanation of scope).

Fully

This report is for TSKB’s operations, unless otherwise noted.

3.8

Basis for reporting on joint ventures, subsidiaries, leased facilities, outsourced operations, and other entities that can significantly affect comparability from period to period and/or between organizations.

Fully

The contents of this report are limited to TSKB’s own activities and do not cover the Bank’s subsidiaries and affiliates. It was decided to report solely on TSKB performance inasmuch as the Bank itself accounts for by far the biggest part of its consolidated financial results.

3.9

Data measurement techniques and the bases of calculations, including assumptions and techniques underlying estimations applied to the compilation of the Indicators and other information in the report. Explain any decisions not to apply, or to substantially diverge from, the GRI Indicator Protocols.

Fully

TSKB uses a variety of internal standards and data collection systems, as well as a rigorous internal and external audit process. In addition, we conform to external data reporting standards, such as the Carbon Disclosure Project, and comply with government statutes currently in force in Turkey.

3.10

Explanation of the effect of any re-statements of information provided in earlier reports, and the reasons for such re-statement (e.g., mergers/acquisitions, change of base years/periods, nature of business, measurement methods).

Fully

Provided primarily as footnotes to individual charts where data changed.

3.11

Significant changes from previous reporting periods in the scope, boundary, or measurement methods applied in the report.

Fully

There has not been any change during the reporting period.

3.12

Table identifying the location of the Standard Disclosures in the report.

Fully

GRI 3.1 Content Index

3.13

Policy and current practice with regard to seeking external assurance for the report.

Fully

Appendices / About this Report

4.1

Governance structure of the organization, including committees under the highest governance body responsible for specific tasks, such as setting strategy or organizational oversight.

Fully

Corporate Governance / TSKB’s Corporate Governance Structure
Please also see People / TSKB Human Resources Structure / TSKB HR basic indicators at end-2010

4.2

Indicate whether the Chair of the highest governance body is also an executive officer.

Fully

The Chairman of the Board does not carry out any executive duty in day-to-day business.

4.3

For organizations that have a unitary board structure, state the number and gender of members of the highest governance body that are independent and/or non-executive members.

Fully

Corporate Governance / TSKB’s Corporate Governance Structure

4.4

Mechanisms for shareholders and employees to provide recommendations or direction to the highest governance body.

Fully

Corporate Governance / TSKB’s Corporate Governance Structure / TSKB’s Board of Directors

4.5

Linkage between compensation for members of the highest governance body, senior managers, and executives (including departure arrangements), and the organization’s performance (including social and environmental performance).

Fully

People / Executive compensation

4.6

Process in place for the highest governance body to ensure conflicts of interest are avoided.

Fully

Please see www.tskb.com/images/PartDocuments/
TSKB_KUY-2011_06-ENG-SON.pdf

4.7

Process for determining the composition, qualifications, and expertise of the members of the highest governance body and its committees, including any consideration of gender and other indicators of diversity.

Fully

Please see www.tskb.com/images/PartDocuments/
TSKB_KUY-2011_06-ENG-SON.pdf

4.8

Internally developed statements of mission or values, codes of conduct, and principles relevant to economic, environmental, and social performance and the status of their implementation.

Fully

Profile / Mission, Vision, Goals
Sustainability and Environmental Issues / TSKB’s Environment Policy

4.9

Procedures of the highest governance body for overseeing the organization’s identification and management of economic, environmental, and social performance, including relevant risks and opportunities, and adherence or compliance with internationally agreed standards, codes of conduct, and principles.

Fully

TSKB’s CEO is a member of the Board of Directors. The Environmental Management Representative of the Bank directly reports to the CEO on a quarterly basis. Thus, the CEO is the highest authority in the Bank in the areas of environment and sustainability.
Please also see www.tskb.com/images/PartDocuments/
TSKB_KUY-2011_06-ENG-SON.pdf

4.10

Processes for evaluating the highest governance body’s own performance, particularly with respect to economic, environmental, and social performance.

Fully

Please see www.tskb.com/images/PartDocuments/
TSKB_KUY-2011_06-ENG-SON.pdf

4.11

Explanation of whether and how the precautionary approach or principle is addressed by the organization.

Fully

TSKB supports the precautionary principle under the UN Global Compact. Consistent with that principle, we advocate a risk-based approach to our operations through our extensive management systems.

4.12

Externally developed economic, environmental, and social charters, principles, or other initiatives to which the organization subscribes or endorses.

Fully

Dialogue / International initiatives and TSKB /National initiatives and TSKB

4.13

Memberships in associations (such as industry associations) and/or national/international advocacy organizations in which the organization: * Has positions in governance bodies; * Participates in projects or committees; * Provides substantive funding beyond routine membership dues; or * Views membership as strategic.

Fully

Dialogue / International initiatives and TSKB /National initiatives and TSKB

4.14

List of stakeholder groups engaged by the organization.

Fully

Dialogue / TSKB’s stakeholders

4.15

Basis for identification and selection of stakeholders with whom to engage.

Fully

Dialogue / TSKB and stakeholder engagement

4.16

Approaches to stakeholder engagement, including frequency of engagement by type and by stakeholder group.

Fully

Dialogue / TSKB and stakeholder engagement

4.17

Key topics and concerns that have been raised through stakeholder engagement, and how the organization has responded to those key topics and concerns, including through its reporting.

Fully

Dialogue / 2010 TSKB stakeholder engagement survey

Aspects

Economic performance

Fully

Performance / Value creation; CEO’s Assessment
Please also see TSKB’s 2010 Annual Report at www.tskb.com/images/PartDocuments/ TSKB-2010_ENG.PDF pages 13; 14-16; 22-35

Market presence

Fully

CEO’s Assessment; Sustainability and Environmental Issues
Please also see TSKB’s 2010 Annual Report at www.tskb.com/images/PartDocuments/ TSKB-2010_ENG.PDF 22-35

Indirect economic impacts

Fully

Sustainability and Environmental Issues
Please also see TSKB’s 2010 Annual Report at www.tskb.com/images/PartDocuments/ TSKB-2010_ENG.PDF page 27

Aspects

Materials

Fully

Sustainability and Environmental Issues / TSKB’s Environmental Impact

Energy

Fully

Sustainability and Environmental Issues / TSKB’s Environmental Impact

Water

Fully

Sustainability and Environmental Issues / TSKB’s Environmental Impact

Biodiversity

Not

Emissions, effluents and waste

Fully

Sustainability and Environmental Issues / TSKB’s Environmental Impact

Products and services

Fully

Approach / TSKB’s Sustainable Banking Strategy; TSKB’s Sustainability Priorities;
Sustainability and Environmental Issues / Sustainable Banking at TSKB
Please also see Products and Services of TSKB

Compliance

Fully

Corporate Governance / Absolute Compliance with Laws and Regulations

Transport

Fully

Sustainability and Environmental Issues / TSKB’s Environmental Impact
People / Commuting by Sea

Overall

Fully

Approach / TSKB’s Sustainable Banking Strategy; TSKB’s Sustainability Priorities

Aspects

Employment

Fully

People / Human Resources and the Workplace at TSKB

Labor/management relations

Fully

Dialogue / TSKB’s stakeholders

Occupational health and safety

Fully

People / Health and Safety at TSKB

Training and education

Fully

People / Competency Development and Training

Diversity and equal opportunity

Fully

People / Human Rights and Employee Rights at TSKB

Equal remuneration for women and men

Fully

People / TSKB Compensation and Reward System

Aspects

Fully

Please see Career Opportunities at www.tskb.com/career/detail.aspx

Fully

People / Human Rights and Employee Rights at TSKB

Not

Not

Not

Fully

People / TSKB Compensation and Reward System
Please also see Wages and Awards Management at www.tskb.com/career/detail.aspx

Not

Fully

People / The TSKB Performance Management System

Fully

People / The TSKB Performance Management System

Aspects

Local communities

Not

 Not applicable

Corruption

Fully

Corporate Governance
Please also see UN Global Compact COP page 48 at www.unglobalcompact.org/system/attachments/10680/original/ TSKB_COP-2011.pdf?1307551582

Public policy

Fully

Corporate Governance

Anti-competitive behavior

Fully

Corporate Governance

Compliance

Fully

Corporate Governance

Aspects

Customer health and safety

Not

Product and service labeling

Not

Marketing communications

Fully

Profile / Products and Services of TSKB; Sustainability and Environmental Issues / Sustainable Banking at TSKB

Customer privacy

Fully

Corporate Governance

Compliance

Fully

Corporate Governance

EC1

Direct economic value generated and distributed, including revenues, operating costs, employee compensation, donations and other community investments, retained earnings, and payments to capital providers and governments.

Fully

Performance / Value Creation

EC2

Financial implications and other risks and opportunities for the organization’s activities due to climate change.

Fully

Sustainability and Environmental Issues / The renewable energy sector and TSKB

EC3

Coverage of the organization’s defined benefit plan obligations.

Fully

Details are given on TSKB’s 2010 Annual Report at page 95, note XVI available at www.tskb.com/images/PartDocuments/TSKB-2010_ENG.PDF

EC4

Significant financial assistance received from government.

Fully

TSKB does not get any type of financial assistance or aid from the government.

EC6

Policy, practices, and proportion of spending on locally-based suppliers at significant locations of operation.

Partially

Corporate Governance / Relations with Suppliers
TSKB treats spending information confidential and competitive. Therefore TSKB does not disclose any information of spending on suppliers.

EC9

Understanding and describing significant indirect economic impacts, including the extent of impacts.

Partially

Sustainability and Environmental Issues / Supporting Employment and Growth

EN1

Materials used by weight or volume.

Fully

Sustainability and Environmental Issues / Sustainable Banking Performance: The Environmental Dimension (It covers consumption of paper)

EN2

Percentage of materials used that are recycled input materials.

Fully

Sustainability and Environmental Issues / Sustainable Banking Performance: The Environmental Dimension (It consists of waste paper)

EN3

Direct energy consumption by primary energy source.

Fully

Sustainability and Environmental Issues / Sustainable Banking Performance: The Environmental Dimension

EN5

Energy saved due to conservation and efficiency improvements.

Fully

Sustainability and Environmental Issues / Sustainable Banking Performance: The Environmental Dimension

EN8

Total water withdrawal by source.

Fully

TSKB withdraws only municipal water.
Please also see Sustainability and Environmental Issues / Sustainable Banking Performance: The Environmental Dimension

EN16

Total direct and indirect greenhouse gas emissions by weight.

Fully

Sustainability and Environmental Issues / Sustainable Banking Performance: The Environmental Dimension

EN18

Initiatives to reduce greenhouse gas emissions and reductions achieved.

Fully

TSKB finances renewable energy and energy efficiency projects which contribute to the reduction of Turkey’s CO₂ emissions. Details of these projects are given under the topic Sustainable Banking at TSKB

EN28

Monetary value of significant fines and total number of non-monetary sanctions for non-compliance with environmental laws and regulations.

Fully

There was not such an incident in TSKB during the reporting period.

EN29

Significant environmental impacts of transporting products and other goods and materials used for the organization’s operations, and transporting members of the workforce.

Fully

TSKB has reported its employees’ CO₂ emissions in the fragment of employees’ transportation. Please see Sustainable Banking Performance: The Environmental Risks

LA1

Total workforce by employment type, employment contract, and region, broken down by gender.

Fully

People / TSKB Human Resources Structure

LA4

Percentage of employees covered by collective bargaining agreements.

Fully

In TSKB there is no any collective bargaining agreement in place. Employees are hired on an individual basis and rights under the Turkish Labor Law are fully provided.

LA7

Rates of injury, occupational diseases, lost days, and absenteeism, and number of work-related fatalities by region and by gender.

Fully

In the reporting period, there were not any incidents of death or injury; and occupational diseases. As the level of absenteeism please see People / TSKB Human Resources Structure

LA10

Average hours of training per year per employee by gender, and by employee category.

Fully

People / Competency Development and Training

LA11

Programs for skills management and lifelong learning that support the continued employability of employees and assist them in managing career endings.

Fully

People / Competency Development and Training

LA12

Percentage of employees receiving regular performance and career development reviews, by gender.

Fully

During the reporting period, all TSKB personnel who were employed in banking services were subjected to the Bank’s performance evaluation and career progression processes.

LA13

Composition of governance bodies and breakdown of employees per employee category according to gender, age group, minority group membership, and other indicators of diversity.

Fully

People / TSKB Human Resources Structure

LA14

Ratio of basic salary and remuneration of women to men by employee category, by significant locations of operation.

Partially

People / TSKB Compensation and Reward System

HR4

Total number of incidents of discrimination and actions taken.

Fully

There were not any incidents of discrimination in TSKB during the reporting period.

SO7

Total number of legal actions for anti-competitive behavior, anti-trust, and monopoly practices and their outcomes.

Fully

In the reporting period, there were not any legal actions for anti-competitive behavior, anti-trust, and monopoly practices and their outcomes.

SO8

Monetary value of significant fines and total number of non-monetary sanctions for non-compliance with laws and regulations.

Fully

In the reporting period, there were not any non-monetary sanctions for non-compliance with laws and regulations.

PR5

Practices related to customer satisfaction, including results of surveys measuring customer satisfaction.

Partially

Dialogue / 2010 TSKB stakeholder engagement survey

PR7

Total number of incidents of non-compliance with regulations and voluntary codes concerning marketing communications, including advertising, promotion, and sponsorship by type of outcomes.

Fully

In the reporting period, there were not any complaints delivered to TSKB.

PR8

Total number of substantiated complaints regarding breaches of customer privacy and losses of customer data.

Fully

In the reporting period, there were not any complaints delivered to TSKB.

PR9

Monetary value of significant fines for non-compliance with laws and regulations concerning the provision and use of products and services.

Fully

In the reporting period, there were not any incident for non compliance with laws and regulations concerning the provision and use of products and services.