Table of Contents

About the Report.....................................................................................................................

3

1.

"BRIDGING PROSPERITY"............................................................................................

5

Why "Bridging Prosperity"?.............................................................................................................

5

Message from the Chairman ............................................................................................................

6

Message from the President ............................................................................................................

8

About Tekfen Holding .....................................................................................................................

11

Tekfen Holding's Sustainability Milestones ...............................................................................

17

Highlights of 2021............................................................................................................................

19

Sustainability Vision........................................................................................................................

20

Megatrends............................................................................................................................

21

Contributing to the Global Agenda ...................................................................................

21

Investor Perspective............................................................................................................

21

Material Issues (Materiality Matrix)........................................................................................

22

Materiality Analysis.............................................................................................................

22

Tekfen's Priorities ...............................................................................................................

23

Stakeholder Priorities.........................................................................................................

23

Material Issues......................................................................................................................

23

Sustainability Management ...........................................................................................................

24

2.

OPERATIONAL ROOTS ...............................................................................................

27

Economic Performance...................................................................................................................

27

Corporate Governance ....................................................................................................................

29

Board Diversity.....................................................................................................................

29

Corporate Memberships and Supported Initiatives*....................................................

31

Risk Management.........................................................................................................................

33

Internal Audit................................................................................................................................

36

Business Ethics and Compliance...............................................................................................

36

Compliance with the Principles.........................................................................................

36

Training..................................................................................................................................

37

Customer Loyalty .............................................................................................................................

38

Operational Excellence ...............................................................................................................

40

3.

STRATEGIC DRIVERS ..................................................................................................

43

Climate Crisis ....................................................................................................................................

43

Net-ZeroEconomy................................................................................................................

43

Management Structure........................................................................................................

44

Climate Risks and Opportunities ......................................................................................

44

1

Climate Targets.....................................................................................................................

46

Natural Resources and Waste Management...........................................................................

49

Water Management..............................................................................................................

49

Waste Management..............................................................................................................

51

Zero Waste.............................................................................................................................

51

Biodiversity ...................................................................................................................................

52

Innovation .........................................................................................................................................

53

R&D and Innovation Culture .............................................................................................................

53

R&D Studies.............................................................................................................................................

56

Digitisation ..............................................................................................................................................

61

Operational Efficiency.........................................................................................................

61

Digital Work Environment .................................................................................................

62

Network and Internet Access Services.............................................................................

62

Cybersecurity ........................................................................................................................

62

Employees and Society....................................................................................................................

65

Equal Opportunity and Diversity.....................................................................................................

66

Talent Management..............................................................................................................................

66

Performance Management.................................................................................................................

67

Personal and Leadership Inventory Studies...................................................................

67

Organisational Agility and Hybrid Work.................................................................................

67

Trainings and Leadership Programs..............................................................................................

70

Employee Communication .................................................................................................................

72

Occupational Health and Safety (OHS) ..........................................................................................

73

OHS Training .........................................................................................................................

75

Social Investments .......................................................................................................................

78

4.

APPENDIX ....................................................................................................................

82

Communication Methods with Stakeholders .............................................................................

82

Performance Indicators..................................................................................................................

84

Environmental Performance Indicators .......................................................................................

84

Social Performance Indicators .........................................................................................................

89

Occupational Health & Safety Indicators.........................................................................

91

Economic Indicators ...................................................................................................................

92

Awards and Achievements.............................................................................................................

92

5.

GRI CONTENT INDEX ..................................................................................................

94

2

About the Report

In Tekfen Holding Inc.'s (Tekfen) fourth annual sustainability report, the Company shares with the reader its vision of "Bridging Prosperity", its sustainability priorities, goals, and performance data.

This report has been prepared in accordance with the "Core" option of the GRI Standards. The report also includes information about the progress regarding the United Nations Global Compact.

Tekfen Holding adopts all of the Sustainability Principles published by the Capital Markets Board of Turkey, and information on the principles that are fully and partially complied with is included in the Company's Annual Report.

Aiming to fully comply with the Sustainability Principles Compliance Framework, Tekfen Holding also reports its detailed approach and performance in line with the Principles by means of this report.

(GRI 102-1, GRI 102-51, GRI 102-52, GRI 102-54)

3

Scope

Covering the period between January 1 and December 31, 2021, this report for Tekfen Holding includes data from the Engineering and Contracting Group (Tekfen Construction/Tekfen İnşaat, Tekfen Engineering/Tekfen Mühendislik, Tekfen Manufacturing/Tekfen İmalat), Chemicals Industry Group (Toros Agri/Toros Tarım), Agricultural Production Group (Tekfen Agri/Tekfen Tarım), and Services Group (Tekfen Insurance/Tekfen Sigorta, Tekfen Tourism/Tekfen Turizm).1 Investment Group (Tekfen Ventures) data are not included in the report, and the Group's good practices are included instead.

The Occupational Health and Safety (OHS) data included in the report covers the relevant workplaces and facilities of companies that are classified as hazardous and very hazardous by Occupational Health Safety principles and NACE codes. Subcontractors are included in all OHS data. The same rules apply and equal OHS opportunities are presented for all employees of Tekfen and its subcontractors, therefore the performance indicators for all employees are reported together. All environmental data include projects, workplaces, and facilities of companies which operationally controlled by Tekfen. For your inquiries, opinions and suggestions regarding the report, please contact us via surdurulebilirlik@tekfen.com.tr.

(GRI 102-45, GRI 102-50, GRI 102-53)

1 These companies account for approximately 95% of Tekfen Holding's consolidated turnover.

4

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Tekfen Holding AS published this content on 26 August 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 26 August 2022 14:00:00 UTC.