TSKB Sustainability Policy

C. PRINCIPLES AND PRACTICES

TSKB Sustainability Policy includes the following basic principles and guidelines: 

The Bank;

1. identifies all positive and negative environmental and social risks and impacts from its operations and activities, and manages them in accordance with national and international standards.

2. does not finance the activities included in the List of Activities That Are Not To Be Financed in any manner whatsoever. 

3. takes into account the impacts of climate change and climate risks and opportunities as described in the Climate Change Mitigation and Adaptation Policy and contributes to the global efforts to combat climate change as part of sustainable and responsible banking operations.

4. undertakes to play an active role in the transition to a low carbon economy by taking into account the holistic effects of climate change on economic and social welfare and growth, and to respond to the demands of the society using existing and new sustainability-themed loan products.

5. assesses and manages the environmental and social impacts of all financed investment and working capital loans, regardless of their amount, in accordance with the principle of doing no harm as adopted in the Nature and Biodiversity Policy and as defined in the Environmental and Social Risk and Impact Management Policy.

6. takes into account contribution to the Sustainable Development Goals in its activities.

7. formulates medium and long term strategies in a way to safeguard the rights and interests of all stakeholders and the public good. 

8. adopts circular economy practices across all lines of business and promotes their implementation, as well as the delivery of internal capacity-building programs. It works in close cooperation with its suppliers to manage occupational health and safety risks, as well as environmental, social and nature-related impacts arising from the supply chain. It supports suppliers in improving their occupational health and safety, environmental and social sustainability performance. It carries out this process according to the Sustainable Procurement Management Policy.

9. creates within the framework of the Human Rights Policy a modern and safe working environment that respects human rights and where social justice and labor rights are constantly improved. It facilitates collective consciousness and raises awareness in order for all stakeholders to adopt this approach. It trains a competent workforce in all managerial and expert positions at different levels, taking into account the principle of equal opportunities. It organizes trainings to increase employee awareness on the internalization and management of sustainability.

10. provides a physically and mentally healthy working environment for its employees in accordance with the Occupational Health and Safety requirements and legal regulations, delivers training and information, and takes necessary measures. It handles this matter pursuant to the Occupational Health and Safety Policy.

11. rejects, in accordance with the principle of equal opportunities and inclusiveness, any form of discrimination that distinguishes, excludes or favors individuals on the basis of gender, sexual orientation, physical appearance, mental or physical disability, religion, political opinion, race, cultural or social background. It embraces diversity in the workforce as a fundamental component of human capital. It supports the role of women's labor force in the economy within the framework of sustainable development. In accordance with the Equal Opportunities and Inclusion Policy, the Gender Equality Policy and the Sustainable Procurement Management Policy, it oversees sensibility for gender equality among its employees, customers and suppliers.

12. supports continuous training and competence development activities within the Bank to improve corporate capacity in the field of sustainability and contributes to raising relevant awareness among employees, customers and the society.

13. adopts a fair remuneration and reward approach within the framework of its ethical values and strategic goals. To this end, in the performance evaluations of senior management and employees, it takes into account the duties, responsibilities and contributions they undertake within the scope of sustainability strategy and goals, including climate change, and reflects these evaluations into the remuneration and reward processes within the framework of the Remuneration Policy.

14. respects the constitutional rights and freedoms of its employees including freedom of association, right to represent, right to establish trade unions and right to collective bargaining.

15. does not tolerate bribery and corruption in any manner whatsoever. In relevant cases, it acts within the framework of the Anti-Bribery and Anti-Corruption Policy.

16. ensures its employees do not directly or indirectly request or accept gifts from customers or any stakeholders in violation of the provisions of the Gifts and Hospitality Policy nor engage in any behavior that may create such an impression.

17. participates in and supports social responsibility projects that support sustainable development, particularly in the fields of education, environment, culture and arts. 

18. shares the generated value with shareholders, customers, employees and other stakeholders on equal terms, in an accurate, complete, understandable and accountable manner.

19. adopts the principle of sharing all information about its services with customers in a complete, clear and easily understandable manner in accordance with responsible banking principles and observes full compliance with fair competition rules. 

20. sets out in its Responsible Communication Policy the principles regarding the internal and external communication strategy pursued in brand and marketing communication activities.

21. continuously reviews and improves sustainability practices, regularly and transparently shares its operational performance and targets with stakeholders and the public through audited reports prepared in line with the requirements of relevant public institutions and the applicable legislation.

22. mutually shares value in cooperation with national and international initiatives that are related to its fields of activity and support sustainability, and with various stakeholders, particularly civil society organizations, universities and public institutions.

23. encourages the adoption of these policy principles by all business partners and supply chain parties.

24. monitors the implementation and performance of this policy under the supervision of senior management and the Board of Directors.  

D. ROLES AND RESPONSIBILITIES

The Bank's sustainability organization is led by the Board of Directors and covers all employees. Within the framework of the Sustainability Management System, sustainability practices are addressed from the highest level of governance, starting from the Board of Directors and Executive Committee level. The Sustainability Committee was established to ensure that the business plans developed within the scope of the Bank's sustainability strategy, vision and targets are owned and managed at the Board of Directors level. The Sustainability Committee is the highest level governance body responsible for the realization of the strategies and targets set in line with the Bank's sustainability objectives. The Committee consists of at least three members of the Board of Directors, the CEO and two Executive Vice Presidents, all appointed by the Board of Directors. The Climate Change and Sustainability Management (CCSM) Department is responsible for the secretariat of the Sustainability Committee. Through the Sustainability Management Committee, the CCSM Department carries out activities for the dissemination of the sustainability strategy and best practices throughout the Bank and their integration into business processes, as well as internal capacity development and information sharing. The Committee is composed of the Bank's CEO, Executive Vice Presidents responsible for sustainability, and relevant unit managers. The opinions of the Committee and the Bank's sustainability activities are regularly reported to the Sustainability Committee by the CCSM Department.

The Sustainability Committee is responsible for carrying out the following activities:

• To ensure the coordination of the work plans and activities to be carried out within the scope of the Bank's sustainability strategy, vision and targets within the Board of Directors,

• To submit the Sustainability Policy and complementary policies to the Board of Directors for approval, and to oversee the integration of the approved policies into all business processes,

• To set short-, medium- and long-term targets to evaluate sustainability performance, and to monitor progress towards the targets,

• To make suggestions on areas where the Bank will cooperate, with a focus on developing the sustainability network,

• To oversee the prioritization and management of sustainability risks and opportunities,

• To observe national and international legislation and standard approaches related to environmental, social, climate and nature risks integrated into the Bank's lending processes,

• To monitor international developments and public regulations regarding sustainability matters, and to make developmental recommendations regarding trends,

• To advise on new business opportunities and impact-oriented projects in line with the Bank's sustainability strategy.

E. REVIEW

TSKB Sustainability Policy, together with its complementary policies, is regularly reviewed by the Sustainability Committee at least once a year in line with requirements and changes in operating conditions. The required updates and amendments enter into force after being approved by the Board of Directors upon the proposal of the Sustainability Committee. These policies are made available to all stakeholders via the corporate website and also to all employees via the Bank's corporate Intranet. 

F. ENTRY INTO FORCE

TSKB Sustainability Policy shall enter into force on the date it is approved by the Board of Directors.