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Corporate Social Responsibility


We see corporate social responsibility - which consists of two prongs, social and corporate - as the most critical means for achieving sustainability.


CORPORATE RESPONSIBILITY and SUSTAINABILITY PERFORMANCE MANAGEMENT AT KOÇ

From year one, Koç Holding has been mindful that corporate sustainability and social sustainability go hand in hand. This was neatly expressed by the late Vehbi Koç, founder of Koç Holding, when he said, “I live and prosper with my country.” Vehbi Koç led the development of Koç Holding’s company management strategies and saw to it that sustainability was integrated with vision, values and operations.

Koç Holding’s corporate social responsibility approach is built on two pillars: Social responsibility and corporate responsibility. Koç Holding’s three principle areas of focus for sustainability management are the work environment,* environmentally friendly practices and social development. In light of corporate commitments, policies and targets, performance in each of these areas is managed and monitored by specialized organizational units in accordance with international norms. Koç Holding’s sustainability management strategy and performance results are periodically reported to the Holding’s shareholders for their evaluation, in compliance with the Global Reporting Initiative (GRI) Standard B-level reporting requirements and the principles of the United Nations Global Compact. The Corporate Social Responsibility Reports can be obtained from www.koc.com.tr.

GLOBAL COMPACT

The United Nations Global Compact, signed by our Chairman of the Board, Mustafa V. Koç, in 2006, is an international framework that demonstrates how social responsibility can be implemented in corporate operations and how it can be improved upon.

As a member of the Global Compact Local Network Turkey Board of Directors, Koç Holding continued to support efforts in 2013 to extend and institutionalize the Global Compact in Turkey. Koç Holding shares good practice examples at international conferences, as it did at the 2013 Leaders Summit held in New York, 18-20 September, by the Global Compact, UN Women, International Finance Corporation (IFC) and the International Trade Center (ITC). At that summit, the Holding delivered a presentation on Women’s Empowerment and the Post-2015 Development Agenda: Achieving Equality in the Workplace, Marketplace and Community.


Koç Group monitors the environmental impacts of all its operations and production processes.


ENVIRONMENTALLY FRIENDLY PRACTICES AT KOÇ

Koç Holding is committed to complying with national and international legal regulations and environmental standards in all of its activities. It aims to be a model company in terms of the importance it places on raising its employees’ environmental awareness and of improving its commitment to the environment and performance in this area. By sharing its experiences, it endeavors to find common solutions to local and global environmental problems, and to remain sensitive to expectations in health and safety and to the needs of society. These principles are in harmony with the environmental principles of the UN Global Compact that Koç Holding signed in 2006.

Koç Holding’s Environmental Policy and Environmental Vision and Mission are fundamental to how Group companies conduct their business activities. The Policy, Vision and Mission are managed through strong organization and sound processes that extend from the Holding level right down to the field. The Holding’s Environment Committee was formed to share best practices, create common long-term plans and to develop common projects.

An Audit Group and the Environment Committee jointly conduct an environmental audit once every two years to raise environmental awareness within Koç Holding companies and to determine possible risks. The indicators used for evaluation during the audits are derived from sustainability criteria. Environmental management in Koç Holding Companies is divided into four main areas: Climate Change and Emissions Management, Resource-Use Efficiency Management, Environmentally-Friendly Product Development, and Environmental Protection and Improvement.

Koç Holding’s companies combat climate change within the framework of Koç Holding’s Climate Change Strategy. Accordingly, the Holding’s companies strive to effectively measure and reduce greenhouse emissions. Levent Çakıroğlu, President of Koç Holding Consumer Durables Group and General Manager of Arçelik, has been serving as term spokesman and chairman of the Climate Change Platform in Turkey, of which it is a founding member. Arçelik has signed the 2°C Declaration, which has drawn attention to work being done on climate change. Arçelik participated at the CEO level in the World Climate Conference held in Durban in 2011 and in Doha in 2012, where the Company provided an account of its work in this area. More recently, Arçelik participated in the World Climate Conference held in Warsaw at the end of 2013 and it has followed developments in climate change. Aygaz is also member of the Turkish Climate Platform. Koç Holding’s Climate Change Strategy is explained in detail in the CSR report.


An important component of the Koç Group’s principle of offering goods and services that create added value for its customers is minimizing environmental impact.


One of the priorities of Koç Holding companies is to minimize the environmental impact of production. Respect for the environment is a priority in the Holding’s companies’ production processes. Most of its companies have the ISO 14001 Environmental Management System in place. In 2013, Arçelik, Ford Otosan, Tofaş, TürkTraktör, Opet Petroleum, Opet Fuchs, Koçtaş, THY Opet and 10 airports received ISO 14064 certification. Other Holding companies have established a greenhouse gas management system according to this standard.

Within the framework of energy efficiency; Tüpraş Aygaz, Arçelik, TürkTraktör, Tofaş, Ford Otosan, Tat Konserve and Sek Süt obtained the ISO 50001 Energy Management System certificate. Aygaz and TürkTraktör were the first companies in their sectors to receive this certificate. Arçelik was the first company in its sector to be awarded this certificate by an international certification body. Similarly, Aygaz completed certification requirements for the ISO 50001 Energy Management System in 2012. It also signed the Energy Efficiency in Buildings Declaration (BEV), which was prepared by the Sustainable Development Association (SKD), at a signing ceremony at the 4th National Energy Efficiency Forum and Fair in 2013. The energy used in buildings is one of the main contributors to climate change. The aim behind signing the SKD-BEV Declaration was to measure and reduce the company’s energy consumption and the carbon footprint resulting from it. In line with this goal and the commitments contained in the declaration, all Aygaz employees received awareness-raising training. In addition, an inventory of all buildings was made and energy identity certificates were obtained for them in four locations. The goal is to get energy identity certificates for all locations by 2017. At Tüpraş, an energy survey is being conducted at a building through an agreement with a private company. Aspects of the building that are open to improvement with respect to energy performance have been determined and an increase in efficiency has been obtained. This work will be done in other Tüpraş buildings in the future.

In addition to striving to minimize the environmental impact of Group companies, Koç Holding is conducting projects to improve natural life and biodiversity. These projects are conducted according to the companies’ environmental management approach, which also aims at raising environmental awareness in society. Work at the Ford Otosan Kocaeli plant on biodiversity and ecosystem protection featured as among the best of its kind in Turkey and was presented at the UN’s Rio+20 Sustainable Development Conference.

THY Opet was named a Green Company by the Directorate General of Civil Aeronautics for its airports in Ankara, Adana, Çorlu, Dalaman, Erzurum, Samsun and Van.

An important aspect of the principle of “providing products and services that create added value for the customer,” which is a fundamental goal of Koç Holding, is minimizing the environmental impact of its production. Therefore, dozens of new environmentally friendly products and services were offered to consumers in 2013. Details pertaining to the work are provided in the Koç Holding Corporate Social Responsibility report.

Opet Fuchs R&D has come up with new products that can significantly reduce environmental pollution. For example, a chain lubrication oil that is biologically degradable in 28 days was developed and was made ready for sale in 2014. The Agrego Hibrio 46, developed for agricultural machines, is another biologically degradable product.

Aygaz, Turkey’s most popular autogas brand, conducted a customer awareness campaign in 2013 to highlight the fuel’s environmental-friendliness and to draw attention to the fuel’s performance, safety, widespread availability and economy. The superior qualities of LPG, which the European Commission has named the fuel of the future, were explained to consumers through the autogas awareness-raising campaign. The campaign underlined that autogas was an environmentally friendly fuel, pointing out that in 2012 LPG use in Turkey had reduced carbon dioxide emissions by about one million tons. It stressed that LPG did not contain black carbon, the second largest contributor to global warming after carbon dioxide. Aygaz worked in 2013 to raise awareness of the environment through its Coast Cleaning Campaign held in conjunction with TURMEPA as part of World Environment Day.


Koç Group companies use environmental management to reduce the impacts of their operations on the environment, develop projects to improve nature and biodiversity, and raise public environmental awareness.


Awards

  • Arçelik received the Turkey Carbon Transparent Leadership Award in the 2013 Turkey Report of the Carbon Transparency Project.
  • Arçelik Dishwasher, Electric Motors, and Drier Plants received the Platinum Certificate for energy efficiency from the International Energy Efficiency Consultants, which ranks the energy efficiency of companies.
  • Arçelik garnered first place with its Arçelik 9658 ETI oven in the Innovative Environmental Product category at the Istanbul Chamber of Industry Environment Awards.
  • The Arçelik Electronics Plant received the Turkish Healthy Cities Association’s Environmental Facilities Award in March 2013.
  • Arçelik took first place with its IE3-type energy efficient electric engines in the “Most Efficient Product” category at the SENVER Awards, held by the Ministry of Energy and Natural Resources’ Renewable Energy General Directorate. In addition, its BESTOVEN Built-in Oven Project, which has an A-40% efficiency rating, received the Special Jury Prize. Tüpraş’s refineries participated the same competition with 9 projects and the Batman Refinery granted grand prize in the category of “Most Efficient Industrial Facility.”
  • Ford Otosan and Tüpraş İzmir Refinery received the Healthy Cities Association’s Environmental Facilities Award. Tüpraş’s İzmir Refinery won the first prize in “EBSO-Environmental Best Practice Award” category for the burner modernization project of base oil complex, which helped to reduce emissions significantly as a result of the conversion from fuel oil to natural gas; İzmir Refinery won second prize in the category of Corporate Environmental Responsibility with “The Happy Wastes Project”, which stemmed from the idea of separating and recycling packaging waste.
  • Tüpraş won the “Cleanest Industrial Plant” award at the Ministry of Environment and Urban Plannings Competition.
  • Ford Otosan received the Ford Europe Environmental Leadership Award for the second time with its Dry-Type Sheet Metal Cleaning Project.
  • Divan City Hotel obtained the Green Hotel Certificate on the basis of an independent inspection of environmentally conscious hotels.
  • Otokar came first in the Ministry of Environment and Urban Planning’s 2013 Cleanest Plant competition.
  • VKV Koç High School 11th grade student Elif Bilgin won two out of five awards - the Science in Action award and the Voter’s Choice award - at the Google Science Fair for her project Bioplastic from Banana Peel.
  • The Aygaz Diyarbakır and Eskişehir Filling Facilities came first and second, respectively, at the provincial level in the Ministry of Environment and Urban Planning’s Clean Energy competition.

Koç Holding’s goal is to contribute to raising the level of prosperity in its locations of operations, to promote the expansion of social creativity, and to encourage social development according to stakeholder needs and expectations.


SOCIAL DEVELOPMENT

Koç Holding’s goal is to contribute to raising the level of prosperity in its locations of operations, to promote the expansion of social creativity, and to encourage social development according to stakeholder needs and expectations.

An advanced level of institutionalization of social development is important to Koç Holding. Accordingly, it concentrates its efforts on education, health, the environment and culture/art. The institutions that oversee the Holding’s work in these areas conduct regular programs, support projects and engage in periodic activities.

Vocational Education: A Crucial Matter for the Nation

The Vocational Education: “A Crucial Matter for the Nation (MLMM)” project, which was initiated in 2006 through collaboration between the Ministry of Education, Koç Holding and the Vehbi Koç Foundation, marked its seventh anniversary in 2013. The project has achieved great success since its inception through the support of 20 Koç Holding companies and 579 Koç Holding employee volunteers. The project framework - which provides active scholarships to 8,118 students in 264 schools in 81 provinces, and internships in Koç Holding companies to 80% of internship applicants - has created a model for raising the quality of vocational education. This model application, the School-Workplace Partnership Model, has received multiple awards from many Turkish and foreign institutions for its constituent parts, including scholarships, curriculum, laboratories, internships, personal and vocational training, and employment opportunities.

Over time, the School-Workplace Partnership Model has become an integral part of Koç Holding companies’ vocational education investments and human resources policies. Through micro projects developed within this framework, 29 laboratories, seven training centers, one vocational high school and one vocational training college have been established in five sectors by eight Koç Holding companies. In addition, the experience derived from the MLMM project was shared with non-governmental organizations such as the Education Reform Initiative and the Association of Private Sector Volunteers, thereby ensuring the dissemination of project results.

Many campaigns have been run under the MLMM project to raise awareness of the importance of vocational education. One of the projects that sprung from activities directed at vocational high school students was the “High Schools Compete with Vocations” project, which was completed in 2013. The competition in which the students used their technical and social skills in order to promote their vocations, has reached 400,000 viewers and won awards in the field of communication from all over the world.

The film and book entitled “Our Story: the Story of a Generation of Vocational Education”, an account of the project’s seven-year adventure, were completed in 2013 and shared with the public. Publications containing the statements of students, teachers, school administrators and vocational high school coaches who were part of the project and the results of the project can be found at www.mlmm.com.tr.


Koç Group aims to attain an advanced degree of institutionalization in the area of social development. So, it concentrates on activities in the fields of education, health, environment and arts & culture.


For My Country

The “For My Country” project is a Koç Holding social responsibility initiative that was launched in 2006 to encourage the spread of individual entrepreneurship as part of the notion of responsible citizenship. The Project strives to create a participatory attitude that encourages Koç Holding companies, employees, dealers and suppliers to get involved in solving social problems. The “For My Country” project focuses on a particular social need every two years. In the 2006-2007 implementation period, For My Country led to the realization of 387 local projects in support of local development, whereas in 2008-2009, in the new phase of the Project, 1,084,000 saplings were planted in seven For My Country forests around the country and environmental education was provided to 18,000 children. The 2010-2011 implementation period of the “For My Country” project focused on increasing the number of volunteer and regular blood donors through raising the awareness of 103,000 people. At the end of this phase of the project, Koç Holding gained the distinction of collecting the highest number of blood donations, 83,579 units, through the efforts of a single corporation.


Koç Group supports important projects that are designed to be inherited by society while embracing relevant initiatives.


Between 2012 and 2015, the “For My Country” project is collaborating with the Alternative Life Association and the United Nations Development Program in the No Barriers for My Country project. The objective of this project is to create social awareness and sensitivity to the subject of the disabled and to serve as a role model in the practices that will have a lasting impact on the professional and social lives of the handicapped. By May 2012, this project had raised awareness of 78,373 people at 34 Koç Holding companies, through the efforts of Koç Holding employee volunteers, and in 24 provinces, through our distributors acting as “For My Country” ambassadors. Some 357 volunteers were prepared as instructors under the Right Approach to Disability training program and 1,534 training sessions were held.

In addition, 64 projects designed to make our companies, distributorships and stores disabled-friendly were carried out. Under the project, legal regulations governing the employment of the disabled were monitored and work got under way to develop products and services for disabled consumers. 39 social responsibility endeavors were started in support of the project through inter-company cooperation and NGO-public institution collaboration.


Providing guided tours on the 13th biennial was another project conducted with Koç Holding support. Expert guides gave nearly 4,000 visitors tours of the biennial.


International Istanbul Biennial

Koç Holding supports projects that leave a legacy to society and the International Istanbul Biennial is a prime example. Organized by the Istanbul Foundation for Culture and Arts, the International Istanbul Biennial is a modern art event directly involved in social issues in art and culture. Koç Holding has assumed sponsorship of the International Istanbul Biennial for the ten-year period 2007-2016. Among the arts events held in Turkey, this is the most well-known and it receives the greatest amount of attention from abroad. The support provided to the Istanbul Biennial translates into support for the Istanbul brand. Koç Holding will continue making the necessary contributions to enrich the International Istanbul Biennial and to ensure its continuity.

Together with the Venice Biennial, the Istanbul Biennial is considered the most important activity of the year in the arts in Europe. The 13th International Istanbul Biennial, entitled “Mother, Am I a Barbarian?”, was held between 14 September and 20 October 2013. Koç Holding, using the project to create awareness of and raise interest in modern art in Turkey, made it financially possible for the Biennial to open its doors to all visitors for free. Therefore, throughout the five weeks the Biennial remained open it welcomed a record number of visitors. There were 337,429 visitors to the five exhibition halls of the Biennial, which included Antrepo No.3, Galata Greek Elementary School, ARTER, SALT Beyoğlu, and IMC 5533.

Children ages 8-18 were introduced to modern art through the Modern Art Education for Children Programs project carried out by Koç Holding. The purpose of the project was to instill museum and exhibition culture in children, to raise their interest in art, particularly modern art, and to expose them to basic art concepts. The educational programs run through Koç Holding’s support were held at Antrepo No. 3 throughout the Biennial. They received great attention from young art lovers and were attended by approximately 3,000 students.

Among other projects conducted with Koç Holding support were the guided tours created for the 13th International Istanbul Biennial. Nearly 4,000 visitors participated in these tours.

Koç Fest

Koç Holding and its affiliates started Koç Fest in 2006 to bring music and entertainment to universities, create a special festival for students, and to start a tradition. Koç Fest has been to 28 cities and organized 72 festivals in its seven year history. Koç Holding, as a company that believes sports plays a role in improving quality of life, was also the main sponsor of the Turkish University Games, which was held by the Turkish University Sports Federation in 2009. Thereby, the most prestigious and highest attendance sporting event among Turkish universities has become known as the Turkish Koç Fest University Games and Koç Holding has become an essential part of the festival. Through this initiative, Koç Fest became the largest youth festival in Turkey, bringing together sports, music and fun under one umbrella. Since 2009, Koç Fest has hosted more than 20,000 athletes in 46 disciplines from 185 universities every year. Some of the athletes and teams successful at annual sporting events regularly represent Turkey at international events sponsored by Koç Holding. In 2013, Koç Fest once again visited seven universities and the big finale was held at Adana Çukurova University with approximately 5,000 students in attendance.

Sponsorship of Istanbul’s 2020 Olympics Bid

Koç Holding was a sponsor of Istanbul’s bid to stage the 2020 Olympic and Paralympic Games. Koç Holding believed that Istanbul was the right city for the 2020 Olympics and that the country was ready to realize this dream. All Koç Group Companies worked together to make this dream come true. However, on 7 September, Tokyo was announced as the city to host the 2020 Olympic Games. This cause underlined the need for private investments in sports and athletes in our country, which gained importance also for the Koç Group.