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BRIDGING PROSPERITY
MESSAGE FROM THE CHAIRMAN
MESSAGE FROM THE PRESIDENT
ABOUT
TEKFEN HOLDING
SUSTAINABILITY MILESTONES
HIGHLIGHTS OF
2021
SUSTAINABILITY
VISION
With the strong belief that “The future belongs to those who build it,” we continue our activities with a focus on a sustainable future and shape our business culture in line with people, social benefit, and the environment.
Why “Bridging Prosperity”?
As Tekfen Group, we have been one of the building blocks of the Turkish economy with the values we created and jobs we have secured for 66 years. Since day one, our motto has been “Do what you know best in the best way possible”, and this is how we have been in the pursuit of excellence in our fields of operation ever since. Today with the strong belief that “The future belongs to those who build it,” we continue our activities with a focus on a sustainable future and shape our business culture in line with people, social benefit, and the environment.
Both our core business lines of contracting and agriculture are fundamental in “Bridging Prosperity.” At the Engineering and Contracting Group, we contribute to the development of countries with infrastructure projects such as highways and pipelines, industrial facilities such as refineries and terminals, and superstructure projects such as stadiums and high-rise buildings. We build facilities and dwellings projects that meet the vital needs of societies and raise their living standards.
In the field of agriculture, we grow fresh fruits and provide our farmers with high-quality inputs such as our plant nutrients, disease-free seeds, seedlings, and saplings, which are all critical components for their productivity, and therefore the most basic elements of food security.
The buildings we design and build as part of our real estate activities offer safe, comfortable, and environmentally friendly living and working spaces to tens of thousands of people.
With the Tekfen Foundation, we provide scholarships to successful young students for a brighter future and contribute to social life with a focus on arts and culture.
We strive to build a brighter, more prosperous, and more sustainable future with all our activities, practices, priorities, and goals.
We regard human life as our top priority, and we aim to minimise our overall impact on the environment. We strive to constantly improve ourselves and make investments that will enable us to use our resources in the most efficient way possible. We closely follow the megatrends that are rapidly transforming our world, such as the climate crisis, population growth, demographic and social change, urbanisation, and technological developments. Besides integrating digital transformation and innovation into our business, we also allocate resources to initiatives that will enhance our activities with new technologies. We are proud to be setting an example for our industries with our good practices and remarkable performance in occupational health and safety.
As a Group that serves the welfare and development of societies with deep historical roots, our primary responsibility is to become a pillar of a sustainable future. What better words than “Bridging Prosperity” to express our quest for sustainability!
In our sustainability approach, we embrace transformative business models and draw on our experience and know-how in our industries to resolve global threats to our future with a particular focus on the climate crisis.
Message from the Chairman
Dear Stakeholders,
2021 has been a year of hope and disquietude around the globe. Fortunately, there were positive developments in 2021, such as the mass availability of vaccination, which helped mitigate the severe impacts of the COVID-19 pandemic, and the ensuing period of normalisation on the horizon. However, the rapid spread of the Omicron variant that occurred by the end of the year eradicated any hopes that the pandemic would soon be over, and once again, dragged the world into a state of uncertainty. The number of registered Coronavirus cases reached 278 million by the end of year and around 5.4 million people lost their lives due to the virus. The inequalities around the world in reaching healthcare services and vaccination, on the other hand, only served to prove how vital the goal to “reduce inequalities” is to achieve a sustainable future. According to the World Health Organization statement in September 2021, Africa had only a 2 percent share of the over 5.7 billion doses of vaccination around the world.
The pandemic also further highlighted the economic inequalities. The UN General Secretary Antonio Guterres once likened the Coronavirus to an x-ray, revealing fractures in the fragile skeleton of the societies we have built. According to the 2022 World Inequality Report, the gap between the lower and upper income levels only widened during the pandemic. The damage inflicted by climate change on livelihood, and the conflicts and forced migrations only worsened the situation.
The inflationary impact of extreme escalation in energy and commodity prices, on the other hand, stressed our economic management. The inflation reaching record-breaking rates by the year end in the US and the Euro region proved that the price rises during the pandemic are here to stay. This led the central banks, who had injected liquidity into the markets to support the economic activity during the pandemic, toward contractionary policies, thus heightening the global recession expectations.
The current situation indicates that the disrupted global balance will not easily settle back in and that the problems will not be overcome unless a stakeholder-based sustainable economic approach is adopted. Adopting an economic approach built on resource efficiency and the circular economy, that implements sustainable business models, supports savings rather than consumption, and generates value not only for a handful of shareholders but for all stakeholders undoubtedly requires an openness to changes and the collective efforts of all economic actors.
We believe that companies that fail to adjust to this transformation or refuse to build their business on sustainability will not survive in the future. At Tekfen, it is our primary goal in all our industries to lead this transformation. In our sustainability approach, we embrace transformative business models and draw on our experience and know-how in our industries to resolve global threats to our future with a particular focus on the climate crisis. Our Group companies progressively focus on sustainability by integrating digitalisation, innovation, environment, efficiency, and inclusiveness into their business processes through an environmental, social and corporate governance (ESG) approach.
The rejuvenation period that occurred with the Holding management takeover early in the first quarter aims to create, without compromising on Tekfen values, a dynamic, durable, competitive and sustainable structure for Group companies that generates value for all stakeholders and is more confident towards the future.
I consider Turkey’s signing of the Paris Agreement in 2021 to adopt the target of zero emission by 2053 a crucial step in taking its place in the new world order. The 217 recommendations concluded at the Climate Council, organized recently for the first time in Turkey, function as guidelines to our “Tekfen Net Zero Roadmap” launched in line with our medium- and long-term emission reduction goals.
We scored “A” at CDP’s Climate Change and Water Security Programs for our successful initiatives in 2021 on the climate crisis and water. This success only inspires us to go further. Many global examples now prove that companies who respond rapidly and properly to the fluctuations of our times are more successful in overcoming difficulties and can create new opportunities to operate their business in a more sustainable structure. We believe our capacity to be a part of the change and not fear it will carry Tekfen Group Companies much further.
The Fourth Sustainability Report of Tekfen consists of a summary of our efforts to this end. I would like to take this opportunity to thank our valuable stakeholders and shareholders who always stand by our side in our transformation journey.
Sincerely,
Zekeriya Yıldırım
Chairman of the Board
Tekfen boasts an already bright history, and we consider this need for transformation an opportunity to write a new success story, or “the new story of Tekfen.” Sustainability presents a basis to our new story. Because we believe that any company that fails to generate value in the environmental, social, and corporate governance triangle is doomed to fail, let alone lead change itself.
Message from the President
Dear stakeholders,
Our world has been undergoing a major transformation. The COVID-19 pandemic highlighted how inevitable and delayed the steps we must take have been if we are to achieve sustainability and a better future for our world. It also reaffirmed the need to speed up our processes. Due to the pandemic, which acted as a catalyst, the climate crisis and various other threats to our future have become more prominent in our agenda. Many of these major events were observed in 2021. We experienced downturns in the economy, social life, and the environment while battling the complications of the global pandemic.
In 2021, the climate crisis continued to manifest in extreme droughts and weather events. Turkey simultaneously experienced floods caused by extreme precipitation and extreme drought. The disastrous wildfires during summer months reduced 133,000 hectares of forest to ashes according to official data. The mucilage that resulted from years of unregulated sea pollution now indicates a serious threat to the marine life. Such events that we witness daily in the world are signs that we will have to pay higher prices every day unless we prioritize achieving harmony with nature.
On the other hand, social and economic sustainability issues remain pressing. As noted in the 2021 and 2022 Sustainable Development Reports, the regression in sustainable development all around the world prompted by the COVID-19 pandemic cannot be compensated for. While challenges in poverty, unemployment, social justice and equality, human rights, and access to services and food regress the living conditions of masses, developing countries with low income levels cannot protect themselves against these crises and their indirect implications as they lack sufficient financial resources. The constantly escalating environmental, social, and economic issues that we must now face are clear indications of the inevitable transformation.
Tekfen boasts an already bright history, and we consider this need for transformation an opportunity to write a new success story, or “the new story of Tekfen.” Sustainability presents a basis to our new story. Because we believe that any company that fails to generate value in the environmental, social, and corporate governance triangle is doomed to fail, let alone lead change itself.
In 2021, we laid the foundations for such a transformation while moving on with our sustainability journey. Our Group Companies in different industries implemented many innovations and investments throughout the year that will contribute to the green transformation. The LEED Platinum-certified FNN Sustainability Center launched in Adana, Ceyhan by Tekfen Construction is among these efforts. Another facility in the area is the Tekfen Construction’s Ceyhan Fabrication Facility, which, with the rooftop solar panels installed, meets 70 percent of its electricity needs through renewable energy sources.
As the global food crisis gains further importance and prominence, agriculture becomes a priority for sustainability. The war, extreme weather conditions, economic shocks, and the permanent implications of the COVID-19 pandemic also triggered significant issues concerning food access in 2021. The Global Food Crisis Report published over the recent months revealed that the number of people suffering from acute food insecurity broke an all-time record with 193 million people in 2021.
Our two Group companies directly affiliated with agriculture, Toros Agri and Tekfen Agri, both take substantial steps in sustainability and social development through R&D and product development activities. The Agripark R&D Center of Tekfen Agri conducts seed rehabilitation efforts to develop highly productive bread wheat species that are resistant to both drought and the different ecological conditions of our country. Toros Agri R&D Center, on the other hand, focuses on developing new, eco-friendly fertiliser types, promoting energy efficiency and reducing the environmental impact of manufacturing processes. Despite the restrictive measures imposed by the European Green Deal on fertilisers, Toros Agri continues its studies on special fertilisers to manage the risks and opportunities brought by changing market conditions.
Toros Agri has been working to raise awareness among farmers on proper fertilisation for years. As part of these efforts, the Toros Agri Training Bus, which has been on the road since 2008, visited 96 different locations to train farmers. The Agricultural Technical and Digital Marketing team roaming around Anatolia with specially equipped vehicles visited over 13,000 distributors and farmers to offer on-site solutions. As part of the Women Farmers Loan Project, another social investment project addressing farmers, Tekfen Foundation cooperated with Turkey Waste Prevention Foundation and Toros Agri to offer loan and education support to 80 low-income women farmers.
Our main goal in occupational health and safety, a major sustainability priority in our Group, is to ensure “zero accidents” in all our work places. In addition to carrying out field inspections to this end throughout 2021, we conducted educational activities to nurture a behaviour-focused security culture. We also organized nearly 515,000 person/hour training on Health-Safety-Environment and regained a substantial boost in HSE education rate that had dropped due to the pandemic.
Tekfen Construction operates in one of world’s highest risk industries in terms of occupational health and safety. The company sustained its below-industry average in Total Recordable Injury Rate throughout 2021. Achieving significant accident-free rates, Tekfen Construction merited the Health and Safety Award by IPLOCA for its “Operator Training Through Virtual Reality Equipment.” The company also launched the pilot version of its “3H Hazard Hunting Headquarters” project, which was designed as an applied HSE training site. As of 2021 year-end, a total of 479 HSE and 87 healthcare personnel were working in the Tekfen Group, including the sub-contractors, indicating the importance attached to OHS across the Group.
Combatting the COVID-19 pandemic has been the key OHS focus across Tekfen Holding and all Group companies in 2021. We organized a survey concerning our remote working system, which we were forced to switch to due to the pandemic. Following an 82 percent positive response from participants based on employee opinion and motivation, we opted to permanently incorporate a hybrid remote working system. Within this scope, we published remote working rules and launched the Remote Working Management System.
You can find out all details about the developments I briefly summarized above as well as our other progress in our Sustainability Report. Unlike in previous years, our sole motivation for publishing our report on digital platforms this year was to further reduce our environmental impact.
As we present the Fourth Sustainability Report by Tekfen Holding, I would like to thank all our stakeholders for their contributions and support on our journey.
Sincerely,
Ali Pandır
President of Group Companies
About Tekfen Holding
With foundations laid in 1956 by three civil engineers – Feyyaz Berker, Nihat Gökyiğit, and Necati Akçağlılar, Tekfen Group is one of the important building blocks of the Turkish economy with the value it adds and the jobs it creates. Traded on the BIST 30 Index and the BIST Sustainability Index, Tekfen Holding carries out its activities with 39 companies and 13 subsidiaries that are highly reputable in their respective industries, with operations in five main fields of activity: Engineering and Contracting, Chemicals, Agricultural Production, Services, and Investment. As one of Turkey’s most respected brands thanks to the values it stands for and the high recognition it enjoys, Tekfen Holding builds its culture of doing business on people, social benefit, and the environment, and continues its activities in line with the principle of growth by sustainable profitability.
Tekfen Tower, İstanbul
5,953 employees
7,888 suppliers
10,278 customers
28 million TRY R&D budget
Engineering and Contracting Group
Tekfen Engineering and Contracting Group is one of the leading international representatives of the Turkish contracting industry with its 66-year history, nearly 17,000 employees and more than 550 projects to date. Boasting extensive experience in various industries, the Group serves as a sought-after solution partner for employers in the international market with its sustainability-oriented approach, uncompromising commitment to global quality standards, successful completion of projects of all scales, and diverse competencies.
The Group has extensive experience in a wide range of areas and offers turnkey EPC (Engineering, Procurement, Construction) and Design & Build solutions to its customers for many areas, such as pipelines, oil and gas terminals, tank farms, oil refineries, offshore oil rigs, pump and compressor stations, power plants, industrial plants, petrochemical plants, highway and subway projects, sports complexes, and superstructure and infrastructure projects.
CTS Bayıl Yard, Azerbaijan
4,695 employees
3,350 suppliers
88 customers
Tekfen Construction and Installation, Inc.
As the Group’s flagship company, Tekfen Construction is one of Turkey’s most well-established contracting companies and a sought-after business partner around the world with its extensive experience, values, and competencies.
Tekfen Engineering, Inc.
Founded in 1984 to undertake the engineering activities of turnkey projects, Tekfen Engineering is a solution partner capable of providing engineering, consultancy and supervision services for large-scale infrastructure projects that require special expertise with its strong staff of more than 400 employees.
Tekfen Manufacturing and Engineering, Inc.
Tekfen Manufacturing was established in 1970 to provide engineering, manufacturing, and assembly services at international standards for storage and process equipment primarily for the oil & petroleum, petrochemical, and chemical industries, and also for industrial facilities, such as gas plants, iron & steel plants, and power plants. The company goes beyond Tekfen Group and provides services to international contracting companies and domestic and foreign industrial enterprises, with exports all around the world.
TEKFEN CONSTRUCTION VALUE CHAIN
Chemicals Group
Toros Agri Industry and Trade, Inc.
Focusing mainly on the production of plant nutrients (fertiliser), Toros Agri, the roof company of the Tekfen Chemical Group, continues its activities in the areas of special water-soluble fertilisers and organic/organomineral fertilisers as well as mineral fertilisers. Toros Agri holds 38% of Turkey’s total installed capacity for the production of mineral fertilisers, and is ranked 57th in Turkey’s Top 500 Industrial Enterprises in 2020 as announced by the Istanbul Chamber of Industry.
As part of its mineral fertiliser production activities, the company produces Ammonium Nitrate (AN), Calcium Ammonium Nitrate (CAN), Diammonium Phosphate (DAP), and compound (NPK) fertilisers at its three different factories located in Ceyhan, Mersin, and Samsun, inhibitor-added and water-soluble fertilisers at its Mersin facility, and the bags used in fertiliser packaging at its Adana bag plant. The company continues to produce organic and organomineral fertilisers at its production facility in Ceyhan, as well as at the Toros Gönen Renewable Energy Production, Inc. facilities acquired in 2019, and the Toros Meram Renewable Energy Production, Inc. facilities established in 2020.
Toros Agri Samsun Production Plant
827 employees
2,039 suppliers
4,878 customers
704 distributors &
510 authorized dealers
TOROS AGRI VALUE CHAIN
Agricultural Production Group
Tekfen Agricultural Research, Production, and Marketing, Inc.
Tekfen Agricultural Research, Production, and Marketing, Inc. was established in 2017 as the parent company of Tekfen Agricultural Production Group in order to bring a corporate perspective to agricultural production, which is vital for a sustainable future, and to transfer the Group’s know-how in the field of agricultural inputs to the agricultural industry with a scientific approach and financial strength.
Tekfen Agri exports most of its fresh fruit output with its Alanar Fruit brand, and also produces bread and durum wheat seeds, potatoes and potato seeds, and bananas and banana saplings by using its own seeds and saplings. When it comes to production diversity, Tekfen Agri is one of the world’s top agricultural production companies.
Alanar Fruit, Tekfen Agri
156 employees
2,002 suppliers
559 customers
Services Group
Tekfen Services Group consists of companies operating in port management, free zone management, building and facility management, and insurance brokerage services. Group companies are focused on high customer satisfaction in every area and refer to some of the best practices in their respective industries.
Torosport Ceyhan, Adana
173 employees
497 suppliers
4.751 customers
Toros Shipping Agency and Trade, Inc.
The Group’s terminal services are carried out at the two terminals located in Toros Agri’s production facilities in Ceyhan and Samsun and supported by services such as shipping brokering. As one of Turkey’s first-generation private sector ports, Torosport Ceyhan holds an important place in the Gulf of Iskenderun for bulk cargo and general cargo. Similarly, the Torosport Samsun Terminal is suitable for the unloading of both dry and liquid bulk cargo handling.
Toros Adana-Yumurtalık Free Zone Founder and Operator, Inc. (TAYSEB)
TAYSEB, one of the subsidiaries of Toros Agri, is the founder and operator of the Adana-Yumurtalık Free Zone, which is the first free zone to be established in Turkey for industrial enterprises. As of 2020, the operational period of TAYSEB, which is one of the largest free zones in Turkey with an area of 4.63 million square metres, has been extended until 2030.
Tekfen Tourism and Services, Inc.
Tekfen Tourism and Services, Inc. which continuing its activities under “Tekfen Services” brand, is a company that specialised in asset and real estate management and that operates and manages Tekfen’s various real estate projects, such as Tekfen Tower, Kağıthane OfisPark, Taksim Residences, Bomonti Apartments, and Yalıkavak Tekfen Houses. The company also supports these projects with asset management, leasing, contract management, and strategic portfolio and revenue-raising activities.
Tekfen Insurance Brokerage Services, Inc.
Tekfen Insurance, which was established in 1982 under Tekfen Holding, continues to serve as the agency of 18 leading insurance companies in Turkey and all around the world. In addition to Tekfen Group Companies, the company also provides services for all insurance needs of various companies operating in the construction, agriculture, engineering, banking, and manufacturing industries, as well as their individual customers.
Investment Group
Tekfen Ventures L.P.
Tekfen Ventures, the parent company of Tekfen Investment Group, is a corporate venture capital firm established in 2016 to seize the opportunities in the world of global entrepreneurship and to invest in early-stage tech startups. Tekfen closely follows innovative initiatives in industries such as contracting, construction, manufacturing, agriculture, fertiliser, and real estate. As of 2021, Tekfen’s portfolio has 13 startups operating in various areas.
Soft Robotics, Tekfen Ventures
Tekfen Holding’s Sustainability Milestones
1992
Tekfen Holding co-founds the TEMA Foundation (Turkish Foundation for Combatting Soil Erosion, Reforestation and the Protection of Natural Habitats).
1993
The first consolidated independent audit.
1997
Receipt of the first ISO 9001 Quality Management System Certificate.
1999
Tekfen Foundation for Education, Health, Culture, Arts, and Protection of Natural Resources (Tekfen Foundation) is founded.
2002
Receipt of the First Occupational Health and Safety Management System Certificate (OHSAS 18001).
2003
Tekfen Construction’s Baku Sangachal Terminal project receives the BP HELIOS Award.*
* Tekfen Construction has been awarded the ‘Encouraging Social Development in Education and New Areas of Business’ award by BP for its success in the Sangachal Terminal Expansion Programme (STEP) project.
2004
- Tekfen Construction receives the International Pipeline and Offshore Contractors Association (IPLOCA) Environment Award.*
- Tekfen Construction is the first Group Company to receive the ISO 14001 Environmental Management System Certificate.
* Tekfen Construction has received IPLOCA’s 2004 Environmental Award for its Sangachal (Azerbaijan) and BTC (Ceyhan-Turkey) projects.
2007
- Tekfen Real Estate Development becomes a founding member of ÇEDBİK, the Association of Environment-Friendly Green Buildings.
- Tekfen Holding goes public.
2010
Tekfen Holding begins to monitor, measure and analyse its climate change data.
2011
Receipt of the first Green Building (LEED) Certificate with the Levent Office Project.
2016
- First carbon-neutral meeting within the Tekfen Group is held.
- Tekfen Ventures is founded.
- Tekfen Holding is included in the BIST Sustainability Index.
2017
- Sustainability Coordinator’s Office & Sustainability Committee are established.
- Tekfen Construction receives the IPLOCA Social Responsibility Project Award.*
- First CDP Climate Change Report published.
- Tekfen Holding becomes a member of the Business Council for Sustainable Development Turkey (SKD Turkey).
* Tekfen Construction has been awarded the “Social Responsibility” award by IPLOCA for its efforts to improve the living and hygienic conditions of the seasonal agricultural workers located on the route of the TANAP Lot 3 Pipeline.
2018
- Signing of the 2018 UN Global Compact.
- First CDP Water Security Report is published.
- Priority issues with sustainability are identified via a stakeholder analysis.
- Toros Agri is the first Turkish company to receive the “Protect & Sustain” Certificate from the International Fertiliser Association (IFA).
2019
- Tekfen Holding publishes its first sustainability report in accordance with the GRI Standards.
- Working groups under the Sustainability Committee are established.
- Toros Agri is found worthy of the “Industry Stewardship Champion” award by the IFA for its works in occupational health & safety, environmental management, product safety, and energy efficiency.
- Tekfen Holding takes its place among Turkey’s Climate and Water Leaders in the CDP’s Climate Change and Water Security Programmes based on 2019 data.
2020
- Tekfen Holding is the only company from Turkey to be included in the Global “A” Lists of CDP’s both the Climate Change and the Water Security Programmes at the same time.
- A Group strategy is created within the framework of the Creating Shared Value (CSV) Approach for activities focused on social investment.
- Tekfen Holding publishes its Policy on Combating Domestic Violence as part of the Business World Against Domestic Violence Project.
- Tekfen Agri is awarded in the “Collaboration” category of the 7th Sustainable Business Awards for its “Developing National and Domestic Bread Wheat Varieties Using Ancestral Seeds” project.
2021
- The “Women Farmers Loan Project” was implemented through the cooperative efforts of the Tekfen Foundation, Turkey Waste Prevention Foundation (TISVA), and Toros Agri.
- Tekfen Construction launched its LEED Platinum-certified FNN Sustainability Center in Adana, Ceyhan.
- The remote working system, which was made mandatory during the COVID-19 pandemic, was made permanent in a hybrid system upon 82 percent positive feedback from employees.
Highlights of 2021
Tekfen Holding was one of only three companies in Turkey and one of 118 companies worldwide to receive an “A” score in the CDP’s Water Security Program, which evaluated 3,368 companies from all over the world in 2021.
Participating in the CDP Climate Change Program for the first time in 2017, Tekfen Holding became one of the Climate Leaders of Turkey by achieving an “A (-)” score in the CDP Climate Change Program in 2021.
Tekfen Group Companies completed seven projects that will contribute to the reduction of emissions. Thanks to these projects, the Group has saved approximately 10,000 MWh and nearly 2.1 million Turkish lira.
Tekfen focused on strategic planning for the climate crisis and established the “Tekfen Net-Zero Roadmap” to shape its plan for the transition to net zero.
With the rooftop solar panels installed at Tekfen Construction’s Ceyhan Fabrication Facility, renewable energy sources meet 70% of the facility’s electricity needs.
Tekfen Ventures added two new companies to its investments. Mosaic focuses on technologies that will make the construction process more efficient in the residential construction sector. On the other hand, Avvir uses laser scans and artificial intelligence to detect construction errors.
Nearly 28 million Turkish lira was invested in R&D across the Group. Additionally, 1 patent application and 5 utility model applications were made.
Tekfen Foundation and Turkey Waste Prevention Foundation (TISVA) cooperated to launch the “Women Farmer Loan Project” to help women entrepreneurs who are willing to work in agriculture but lack the necessary financial resources to set up their own initiatives.
The remote working system, which was made mandatory during the COVID-19 pandemic, was made permanent in a hybrid system upon 82 percent positive feedback from employees.
A total of 5,654 Group employees were given 23,062 person-hours of business ethics training.
The FNN Sustainability Center began operations in January at Tekfen Construction’s South Anatolia Main Repair and Maintenance Facility.
Put on the road as part of the project “Toros Farmer Academy”, the Toros Agri training bus visited 96 locations in 2021 and trained farmers and distributors on the correct use of fertilisers.
Sustainability Vision
Tekfen’s sustainability vision is embodied in Tekfen’s motto “Bridging Prosperity.” The primary goal of all its economic activities is to improve social welfare and quality of life for all members of society. Tekfen Holding’s activities in engineering and contracting, chemistry, agricultural production, services, and investment industries directly overlap with the fundamental elements of social welfare, such as infrastructure services, access to food, energy, and shelter. Through its activities, Tekfen serves as a bridge that enables individuals to access the essential elements of a better life and better well-being, while laying the foundation for a sustainable future.
Strategic Drivers
The climate crisis, employees and society, and innovation have been identified as Tekfen Holding’s main strategic drivers for creating value, as they come with significant risks and opportunities in terms of sustainability.
Operational Roots
These roots define the business approach and priorities of Tekfen Holding, which has been one of the engines of the Turkish economy for the past 66 years. Economic performance, corporate governance, and customer loyalty will continue to be the building blocks of the company’s future.
Enablers
Operational excellence, digitalisation, talent management, and occupational health and safety (OHS) stand out as the main tools that will facilitate the realisation of the “Bridging Prosperity” vision.
Megatrends
Megatrends such as rapid population growth, demographic and social change, urbanisation, technological developments, and climate crisis are currently shaping planet Earth, and they are leading to radical transformations in the business world as well. Tekfen’s “Bridging Prosperity” vision expresses the goal of responding to this change sustainably and flexibly, as it redefines the Group’s entire way of doing business.
Contributing to the Global Agenda
Tekfen’s vision is to develop a sustainable business model that covers the entire value chain and contributes to the UN Sustainable Development Goals (SDGs). Set by the United Nations Development Programme (UNDP) to end poverty, protect our planet, and ensure that all people enjoy peace and prosperity, these 17 goals offer a global agenda to all parties from governments to local administrations and from the public sector to the business world. As one of the signatories of the United Nations Global Compact, Tekfen Holding aims to create shared value by building its sustainability vision on certain SDGs in line with its areas of activity.
Investor Perspective
As sustainability gains traction around the world, more investors are starting to include the issue on their agenda. The exponential increase in the interest shown in sustainable investments is leading to significant changes in capital flows. Various sources state that investments in sustainable companies doubled year on year and reached $4 trillion, while sustainable bond issuance surpassed $1 trillion. (Sustainable Assets are Teetering on the $4 Trillion Mark - Morningstar) (Sustainable finance continues surge in 2021 - Refinitiv)
As we continue to see more regulations such as reporting of the TCFD (Task Force on Climate-related Financial Disclosures) and the TNFD (Task Force on Nature-related Financial Disclosures), investors expect companies to be more transparent with their environmental, social, and governance (ESG) performance.
To keep up with the global agenda, Tekfen Holding expands and improves the scope of its ESG approach and performance, as demonstrated in its annual sustainability reports. It also responds to the annual evaluations of various sustainability indices such as S&P Global, FTSE4Good, and BIST Sustainability Index. For the last two years, Tekfen has been included in the Global “A” List, which lists the highest scores in CDP’s Climate Change and Water Security programs. It also supports global initiatives, such as the United Nations Global Compact and the UN Sustainable Development Goals.
Material Issues (Materiality Matrix)
Materiality Analysis
Materiality analyses are conducted in order to determine Tekfen Holding’s strategic priorities for sustainability and to reveal the focus areas of the Sustainability Report. The intersections of the priorities of the stakeholders and those of Tekfen were determined with the Materiality Analysis covering the External Trend Analysis, the opinions of the Board members, strategic goals, and the Vision Workshop. Material issues are reviewed in light of external trends, risks, and opportunities.
Tekfen’s Priorities
Three different outcomes were included in the analysis in order to identify Tekfen Holding’s priorities. These were:
- The outcomes of the Sustainability Vision Workshop held with the managers of the Group Companies,
- Opinions of the Board Members,
- The objectives in the company’s strategic plan and the outcomes of the Strategy Workshop.
Stakeholder Priorities
Stakeholder priorities were determined through Stakeholder Analysis and External Trend Analysis.
- As part of the Stakeholder Analysis, Tekfen Holding’s employees, customers, suppliers, solution partners, public institutions and regulatory authorities, analysts, investors, nongovernmental and professional organisations, the media, international organisations, and universities were asked about their priorities and their sustainability expectations from Tekfen through surveys. In 2018, about 50 percent of the surveys were answered, adding up to a total of 2,578 people. The Stakeholder Analysis was conducted by an independent consultancy company with reference to the AA1000SE Accountability Stakeholder Engagement Standard.
- With the External Trend Analysis, global and sectoral risks and trends were also included in the analysis, and subjects that are critical for the industries were determined.
Material Issues
The shared priorities of the stakeholders and Tekfen Holding are mapped in the Materiality Matrix. Subjects defined as top priority indicate the sustainability issues that need to be managed before everything else. These subjects form the basis of the “Bridging Prosperity” vision. The focus areas of the “Bridging Prosperity” vision and the material issues are in alignment.
Tekfen’s operational roots cover already cover some of these material issues, namely “Economic Growth,” “Corporate Governance,” and “Customer Satisfaction.” “Occupational Health and Safety” stands out as the top priority for the relevant industries and is also one of the facilitators.
Looking at the priorities of each company;
- “Occupational Health and Safety” is one of the top priorities for Tekfen Construction.
- “Climate Crisis” is the top priority for Toros Agri and Tekfen Agri.
- “Customer Loyalty” is the top priority for Tekfen Tourism and Tekfen Insurance.
“Digitalisation” and “R&D and Innovation,” megatrends with global impact, are also among the top priorities for Tekfen Holding. “Employee Development and Satisfaction” stands out as another major issue that will need attention in the coming period. “Climate Crisis,” another major issue in the industries in which Tekfen Holding operates, is one of the top priorities on the materiality matrix map.
The “Climate Crisis”, “Innovation”, “Employees and Society” are Tekfen’s strategic areas of value. While the Sustainability Report focuses on top material issues, it also covers highly priority and priority issues.
Material Issues
Profitable economic growth, contributions to the local economy and employment
Report Title
Economic Performance
Chapter Title
Section No
01
Sustainability Management
The Sustainability Committee was established and authorized with the approval of the Tekfen Holding Board of Directors in 2017 in order to realise the vision of “Bridging Prosperity” at Tekfen. Operating under the Corporate Governance Committee, the Sustainability Committee consists of senior officers appointed by the CEOs of Tekfen Holding and Tekfen Group Companies (Tekfen Construction, Tekfen Engineering, Tekfen Manufacturing, Toros Agri, Tekfen Agri, Tekfen Tourism, and Tekfen Insurance). The Sustainability Committee is chaired by Tekfen Holding Deputy Chief Financial Officer.
The Sustainability Committee is responsible for creating the strategies, roadmaps, targets, policies, and reports necessary for the realisation of the “Bridging Prosperity” vision, integrating sustainability into business processes in line with the Holding’s priorities, and ensuring the active participation of the Group Companies in these processes.
Consisting of 17 members, the Committee convened three times in 2021. At the meetings, information was shared on the good practices of the Group Companies for sustainability, and the roadmap progress made by the working group leaders. Additionally, the consultant was asked about the net-zero growth plans of world economies, global risks, net-zero investors and financing, growth in ESG funds, potential effects of the European Green Deal on the food and construction industries, Carbon Border adjustments, farm-to-table strategy, regenerative agriculture, and the importance and examples of long-term sustainability goals.
Five working groups were formed to support the committee. Members of these working groups were determined by the leaders of the groups in order to obtain the expertise and diversity required for the implementation of the strategic sustainability roadmap. The groups convened regularly throughout the year and continued their activities in accordance with the relevant strategic sustainability roadmap.
Tekfen Holding Board of Directors is responsible for monitoring sustainability approach, targets, and performance development. The Corporate Governance Committee, which reports to the Board of Directors, is responsible for the execution of sustainability policies, and reports the activities of five working groups to the Board of Directors at least once a year, as well as its own activities. Sustainability issues are regularly discussed by the Corporate Governance Committee and the Board of Directors.
In 2021, we focused on the transition to a flexible working system, net-zero emission roadmap studies, and the development of internal reports. Progress targets related to the actions in the sustainability roadmap and key performance indicators on occupational safety and the environment are included in the company scorecard targets, which affect the annual performance evaluations of senior management (including the CEO) and employees.
Sustainability Committee and Working Groups
Work issues
HSE
Employees
Corporate Governance
Stakeholder Relations and Social Responsibility
Digitalisation and Innovation
- Setting and tracking targets
- Data verification
- Science Based Target (SBT) membership
- ISO 14064, 50001 certifications
- Internal carbon pricing
- Zero waste projects
- Life Cycle Analysis
- Setting and tracking targets
- Leadership, coaching, and mentoring programmes
- Programmes in cooperation with universities to attract young talents
- Employee satisfaction and engagement
- Balance between work and private life
- Ethics and compliance
- Human rights education, assessment and audit
- Supply chain management
- Risk management and sustainability risks
- Membership in international initiatives
- GRI extension and verification
- Transition to integrated reporting
- Social projects that create common values
- Change theory and social impact analysis for projects
- Open innovation platform
- Organising competitions
- Software development for performance and goal tracking