Corporate Social Responsibility


Since the inception of the Borsa İstanbul (BIST) Sustainability Index, all our BIST 30 companies have fulfilled the criteria of the index. Koç Holding, Arçelik, Tofaş, Tüpraş and Yapı Kredi are all included in BIST Sustainability Index.


CORPORATE RESPONSIBILITY AND SUSTAINABILITY PERFORMANCE MANAGEMENT AT KOÇ

From year one, Koç Holding has been aware that corporate is only made possible with complete social welfare. “Fulfilling our responsibilities towards current and future generations is the essential principle by which we pioneer.” These visionary words from the late Vehbi Koç, the founder of Koç Holding, constitute the basis of our management approach. Embracing sustainability as a management model, Koç Group has integrated sustainability across all its operations and processes.

Our responsible and sustainable management structure was recognized in the results of the Borsa İstanbul (BIST) Sustainability Index launched in 2014. Since the inception of the BIST Sustainability Index all our companies included in the BIST 30 have fulfilled the criteria of the index. Koç Holding, Arçelik, Tofaş, Tüpraş and Yapı Kredi are all included in the index.

In 2014, the “Koç Group Sustainability Management Project” was initiated to ensure that Group companies develop sustainable business models within an integrated strategy. The aim of the project is to review the priority areas in the Group’s sustainability perspective. According to the assessment results, targeting and performance measurement processes shall be managed for the entire Group on the basis of specific topics, and through an integrated approach.

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 Board member of the Global Compact Local Network Turkey Board of Directors, Koç Holding continued to support efforts in 2014 to extend and institutionalize the Global Compact in Turkey. Furthermore, the Group has assumed an active role in the Global Compact Turkey Women’s Empowerment Working Group, set up to unite under one umbrella private sector initiatives for gender equality, to support learning among companies and to implement Women’s Empowerment Principles across the country.


Koç Holding is committed to fully complying with legal and regulatory requirements and environmental standards in all its operations. It aims to be a model company in terms of the importance it places on raising environmental awareness among employees.


ENVIRONMENTALLY FRIENDLY PRACTICES AT KOÇ

Koç Holding is committed to complying with national and international legal regulations and environmental standards in all of its operations. 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 environment, health and safety and to the needs of society.

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 at 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.

Climate Change and Emission Management

Koç Holding’s companies combat climate change within the framework of its Climate Change Strategy. Accordingly, the Holding’s companies strive to effectively measure and reduce greenhouse emissions. Levent Çakıroğlu, President of the 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. Representatives of Koç Group and Arçelik have served as the term spokesman and chairman of the Climate Change Platform in Turkey since 2011. They represented the Turkish business community at international platforms such as the World Climate Summit in 2011 in Durban (COP 17) and in 2012 in Doha (COP 18). At the Warsaw Climate Summit of 2013 (COP 19) and in the Workshop organized at the Ministry of Environment and Urbanization prior to the Lima Climate Summit of 2014 (COP 20), Koç Group was represented by Fatih Özkadı, Head of the Environment Committee; the latest developments with regard to climate change are closely monitored by the Group. Koç Holding’s Climate Change Strategy is explained in detail in the CSR report.

In 2014, Arçelik, Ford Otosan, Tofaş, TürkTraktör, Opet Petroleum, Opet Fuchs, Koçtaş, THY Opet and 10 airports calculated greenhouse gas emissions according to ISO 14064-1 Greenhouse Gas Reporting Standards for 2013. Their accounts were verified by independent accredited institutions. In this way they received ISO 14064 certification. Other Group companies have established a greenhouse gas management system according to this standard.



Productivity management in using resources

As part of energy efficiency efforts; Tüpraş Aygaz, Arçelik, TürkTraktör, Tofaş, Ford Otosan, Tat Konserve and SEK Süt obtained ISO 50001 Energy Management System certification. Among Arçelik’s overseas enterprises, its factories in China, Russia and Romania also received ISO 50001 certification in 2014. As such, the Energy Management System became operational in both Turkey and on a global scale.

Under the WCM Energy Management Methodology, Tofaş implemented a total of 111 energy efficiency projects in 2014. As a result of these, a total of 124,812 GJ of energy was saved and 9,720 tons of CO2 emissions were prevented.

As part of its solar energy project, with the purpose of electricity generation from renewable energy, Opet installed photovoltaic solar panels with a capacity of 102.96 kWp/100 kWe to generate electricity from solar energyon an area within the grounds of Mersin Storage Terminal. With the installation of the Photovoltaic Power System, electricity generation has commenced.

At Opet Mersin Terminal, a closed system was installed and commissioned in 2014 to separate rain water from oily water, and collect these in different pools.

The 1505 TÜBİTAK TEYDEB project concerning the recycling of industrial waste water into tap water at Opet Marmara Terminal was approved on October 9, 2014.

An Arçelik-İTÜ partnership, the TÜBİTAK TEYDEB 1505 project on “Water Recycling, Minimization and Integrated Water Management in the Manufacturing of Cooking Devices” was also approved. The aim of the project is to recycle process waste water through advanced treatment technologies, and reuse these in production without compromising product quality.

Opet Fuchs Mineral Oil started deploying the water processed at the Adblue production plant’s water treatment facility in restrooms, for watering gardens and other general purposes.

Environmentally friendly product development

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 2014. Details pertaining to the work are provided in the Koç Holding Corporate Social Responsibility report.


Developing products with a low environmental impact is a significant pillar of one of Koç Group’s main goals: “Offering customers high value-added products and services”


Protect and improve the environment

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 companies’ production processes.

As per WEEE (Waste Electrical and Electronic Equipment), Arçelik set up two recycling plants in Bolu and Eskişehir, minimizing the environmental impact of its products throughout their lifecycle. The recycling plant established in Eskişehir is the only one of its kind in Turkey, as it meets all the requirements for plants processing refrigerators/coolers/air conditioners and collects through a closed system the CFC gases detrimental to the ozone layer.

Opet takes a number of measures to minimize the impact of the petroleum products in its gas stations on the environment and underground water sources.

In 2014, Koç Group companies carried out the following activities on June 5, World Environment Day:

  • To highlight the importance it places on nature, Opet supported the Green Way Project by offering employees a total of 1,050 saplings as gifts.
  • Arçelik placed a special emphasis on the issue of water, and organized the “Arçelik Eco-Friendly Photo Contest.” The theme of the contest was designated as “Water Lost.”
  • Aygaz also focused on the topic of water and placed informative posters on the prevention of water waste in its plants and at head office. The Company also issued a paper to inform its employees about water use in Turkey and worldwide, water waste and measures to prevent it.

In addition to striving to minimize the environmental impact of Group companies, Koç Holding conducts projects to improve natural life and biodiversity.


Awards
  • Koç Holding, Arçelik, Tofaş, Tüpraş and Yapı Kredi have been accepted to the BIST 30 Sustainability Index.
  • Arçelik obtained the top score A in the CDP Performance Ranking and joined the global “A List: CDP Climate Performance Leaders Index 2014.”
  • Arçelik, at the Industrial Energy Efficiency (SENVER) Project Competition organized by the Ministry of Energy and Natural Resources during Energy Efficiency Week, garnered the “Most Efficient Product” award in the Energy Efficient Product category for its “A+++%-10” Tumble Dryer, and the Jury Special Award in the “Most Efficient Industrial Plant” category for its Dishwasher Plant.
  • Otokar received the third place prize in the Large-Scale Corporation Environment and Sustainability Management category of the 14th Environment and Energy Awards held by Istanbul Chamber of Industry (ISO).
  • Ford Otosan won the second prize in the Large-Scale Corporation Environment and Sustainability Management of Istanbul Chamber of Industry’s 14th Environment and Energy Awards for its project dubbed “Back Window.”
  • Tofaş entered the “A List: CDP Climate Performance Leaders Index 2014.”
  • At the Sustainable Product Contest administered by the Ministry of Science, Industry and Technology, “Waste Heat Recycling Projects,” developed by Tofaş Paint Production Department, garnered a prize.
  • Tofaş received first prize in the very first edition of the Energy Management Awards Program by BUSİAD.
  • Tofaş won the second place prize in the Large-Scale Corporation Energy Efficiency category of the Istanbul Chamber of Industry’s 14th Environment and Energy Awards.
  • In a first in the Turkish automotive sector, Tofaş reported its managerial, environmental and social activities in the “Tofaş Sustainability Report,” published according to the format set by GRI4 (Global Reporting Initiative).
  • Opet garnered three awards from LACP (League of American Communications Professionals) for its 3rd Sustainability Report.
  • At the 17th Akdeniz University Environmental Contribution awards, jointly organized by Akdeniz University Environmental Problems Research and Application Center and the Faculty of Engineering, Opet was granted an award in recognition of its social responsibility projects.
  • Opet was deemed worthy of an award by the ecological society Defenders of Nature for its efforts in the “Clean Restroom Campaign.”
  • Batman Refinery granted first prize at the “Industrial Energy Efficiency Project Competition SENVER 14” in the most efficient industrial plant category.
  • Residuum Upgrade Project - Control Building Leed Certificate Gold Level.

Koç Holding signed a partnership agreement with the UN Women to contribute to the social and economic empowerment of women in Turkey.


SOCIAL DEVELOPMENT

Koç Holding’s goal is to contribute to raising the level of prosperity at its locations of operation, 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 for Koç Holding. Accordingly, it concentrates its efforts on education, health, the environment, culture and art.

Support for Vocational Education: Schools and Workplaces Join Forces for Vocational Education

Implemented successfully in different sectors in 81 provinces through a collaboration among the Vehbi Koç Foundation,
the Ministry of National Education, Koç Holding and the
Koç Group companies, the project, “Vocational Education: A Crucial Matter for the Nation (MLMM),” was completed in 2013. The project continues in the form of the School-Workplace partnership model, which helps complete the cycle of “vocational education-employment-development.”

To this end, the School-Workplace Partnership Development Program shall be carried out under the responsibility of the Ministry of National Education, the Turkish Enterprise and Business Confederation (TÜRKONFED), the Turkish Confederation of Employer Associations (TİSK) and Turkish Industrialists’ and Businessmen’s Association (TÜSİAD), through a collaboration between the Vehbi Koç Foundation, the Private Sector Volunteers Association (ÖSGD), the Education Reform Initiative, the Teacher Academy Foundation and the MESS Education Foundation.

As part of the program and to increase the number and quality of partnerships between enterprises and vocational education institutions, regional chambers of industry and commerce, business unions, organized industrial zones, trade associations, enterprises, provincial employment boards and vocational education institutions will organize workshops and training programs. The resulting partnerships will be followed up closely. The pilot work for the program was initiated on November 27, in Bandırma, with the participation of around 70 employers and officials from vocational education institutions.

The MLMM Project garnered its 11th award in 2014. In recognition of the efficiency, comprehensiveness, innovation and sustainability of its partnership model, which has become a best practice, the project received the Grand Prize at the 2014 Corporate Social Responsibility Awards of the Turkish Confederation of Employer Associations (TİSK).

Efforts for the Empowerment of Women

In 2014, Koç Holding signed a partnership agreement with the United Nations Entity for Gender Equality and the Empowerment of Women (UN Women), to contribute to the social and economic empowerment of women in Turkey. Implementing rights-based and human-centered corporate social responsibility projects for many years, the Koç Group will focus on activities concerning gender, which it believes will create significant added value.

For My Country

“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 concept of responsible citizenship. The Project strives to create a participatory attitude that encourages Koç Holding companies, employees, dealers and suppliers to become involved in solving social problems. “For My Country” project focuses on a particular social need every two years. In the 2006-2007 implementation periods, For My Country led to the realization of 387 local projects in support of local development, whereas in 2008-2009, in the latest phase of the Project, 1,084,000 saplings were planted in seven For My Country forests around the country with environmental education 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 among 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, at 83,579 units, through the efforts of a single enterprise.

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 the awareness of 125,982 people at 34 Koç Holding companies, through the efforts of Koç Holding employee volunteers, and in 36 provinces, through our distributors acting as “For My Country” ambassadors. Some 372 volunteers were prepared as instructors under the Right Approach to Disability training program and 2,433 training sessions were held.

In addition, 1,361 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 underway to develop products and services for disabled consumers. Some 39 social responsibility endeavors were launched in support of the project through inter-company cooperation and NGO-public institution collaboration.


Koç Holding continues to support the social development of various arts disciplines and the successful representation of Turkey overseas.


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 32 cities and organized 82 festivals in its nine 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 2014, Koç Fest once again visited ten universities with the grand finale being held at Kayseri Erciyes University with approximately 5,000 students in attendance.


The first national main sponsor of the National Olympic Committee of Turkey, Koç Holding aims to contribute to the Olympic spirit in Turkey and throughout the world.


Sponsorship of National Olympic Committee of Turkey

Continuously undertaking numerous economic and social investments that will add value to Turkey, Koç Holding has raised the bar higher in its support for sports and become the main sponsor of National Olympic Committee of Turkey for three years, contributing to Turkey’s Olympic journey.

The first national main sponsor of the National Olympic Committee of Turkey, Koç Holding aims to contribute to the Olympic spirit in Turkey and across the globe through this sponsorship.

Committed to the importance of developing Turkey into a country with strengths across different sports disciplines, Koç Holding has also become the sponsor of Turkey’s candidacy to host the 2020 Olympics and Paralympics. The Holding carries out efforts to promote an active lifestyle in the country and to ensure that sports are practiced more widely.

KidZania - Earthquake Simulation Center

Koç Group puts maximum effort into the support of projects that have a positive effect on children’s development, turn education into entertainment and help raise more enlightened generations. KidZania Children’s Republics, which have 16 offices in 13 countries across the globe, opened an office in Istanbul in 2014, which was fully embraced by Koç Holding and numerous Koç Group companies with pleasure.

This project allows children aged between 4 and 14 the chance to experience 90 professions, and Koç Holding supports the project with an earthquake simulation center.

In the activity area, which is open to children aged 9 and above, the young visitors are informed on proper procedures prior to, during and after earthquakes. Carried out with support from Boğaziçi University’s Kandilli Observatory, the project features a theoretical lesson followed by an applied program about the earthquake and its aftermath. Recognizing that earthquake awareness must be raised in Turkey, a country vulnerable to earthquakes, Koç Holding offers a training program to the youngest age groups and helps inform the wider population.

International Nasreddin Hodja Cartoon Contest and Symposium

With a view to supporting the social development of different arts disciplines in Turkey and the overseas presence of Turkish arts, Koç Holding has been the main sponsor since 2008 of the International Nasreddin Hodja Cartoon Contest organized by the Association of Cartoonists. First held in 1974 with the participation of world cartoonists, the contest has witnessed success by numerous Turkish cartoonists.