Table of Contents

About the Report

................................................................................................................................................................

3

1.

"BRIDGING

PROSPERITY"

Why "Bridging Prosperity"?

5

Message from the Chairman

5

Message from the President

6

About Tekfen Holding

8

Tekfen Holding's

Sustainability Milestones

10

...................................................................................................................................................

Highlights of 2022

....................................................................................

17

Sustainability Vision

19

Megatrends

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

20

Contributing

21

Investor Perspective

.................................................................................................................. .... ... ... ....

... ...

..

21

Material Issues

(Materiality Matrix)

22

............................................................................................................................................

Materiality Analysis

23

Tekfen's Priorities

................................................................

.............................................

Stakeholder

Priorities

23

.................................................................................................................................................

Material Issues

........................................................................................................................................

24

Sustainability

Management

24

........................................................................................................................................................

and Working Groups

....

... ...

.... ..

Sustainability Committee

25

Study Topics

................................................................

........................................................................................

26

2.

OPERATIONAL ROOTS

28

Economic Performance

Basic Financial

Indicators

28

................................................................................................................................................

Corporate Governance

30

Board Diversity

..........................................................................

33

32

Corporate

Memberships and Supported Initiatives

32

.......................................................................................................................................................

Risk Management

34

Internal Audit

38

Code of Conduct and Compliance...

... ....

... ....

.... ...

.. 8

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

39

Training

.....................................................................................................................

39

3.

STRATEGIC DRIVERS

41

1

Climate Crisis

41

Net-Zero

Economy

.....................................................................................................................................................................

Structure

Management

42

Opportunities

Climate Risks and

42

Climate Targets and Indicators

... ....

... ....

....

43

Use of Natural Resources and

Waste Management

47

......................................................................................................................

Water Management

51

Waste Management

................................................................

..............

Biodiversity

57

..............................................................................................................................................

54

Innovation

...................................................................................................................................................................

56

R&D Studies

57

Digitalisation

... ....

...

....

... ....

..... ...

4

Operational Efficiency

67

Cybersecurity

.................................................................................................................................................

................................................................

................................................................

.........

65

Employees and

Society

66

..........................................................................................................................................................

Talent Management

68

Performance Management

...

...

... ....

.... ....

70

69

Revamped Talent Model

................................

................................

...

Organizational Agility and Hybrid Work

70

Development Programs

71

Employee Communication

72

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

... ...

...

....

...

.....

76

2

OHS Training

................................................................

................................

............................

Social Investments ....

... ....

...

....

... ....

.... ...

77

4. APPENDIX

................................................................

................................

................................

...

83

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

82

Performance Indicators

...................................................................................................

82

Environmental Performance Indicators

83

Social Performance Indicators

.... ...

....

...

...

... 88

Occupational Health and Safety Indicators

................................

.............................

91

Economic Indicators

... ....

...

... ... .... ...

.... ...

...

Awards and Achievements

94

GRI Content Index

................................................................

................................................................

...........

92

2

ABOUT THE REPORT

This report, the fifth of Tekfen Holding A.Ş.'s (Tekfen) annual Sustainability Reports, shares Tekfen's "Bridging Prosperity" vision, sustainability priorities, goals, and performance. The report has been prepared in accordance with GRI Standards for January 1-December 31, 2022. The report also includes progress under the United Nations Global Compact. Tekfen Holding adopts all of the Sustainability Principles published by the Capital Markets Board of Türkiye (CMB) and includes information about the principles that are complied with or partially complied with in its Annual Report.

With this report, Tekfen Holding aims to fully comply with the Sustainability Principles Compliance Framework and reports its detailed approach and performance in line with the Sustainability Principles.

3

SCOPE

This report covers the period between January 1 and December 31, 2022, and includes data from the Engineering and Contracting Group (Tekfen Construction, Tekfen Engineering, Tekfen Manufacturing), Chemical Industry Group (Toros Agri), Agricultural Production Group (Tekfen Agri), and Services Group (Tekfen Insurance, Tekfen Tourism) of Tekfen Holding.* Investment Group (Tekfen Ventures) data is not included in the report; the Group's good practices are included instead.

Occupational Health and Safety (OHS) data in the report includes the projects, workplaces and facilities of the companies classified as dangerous and very dangerous according to the NACE code. Subcontractors are included in all OHS data. The same rules apply and the same OHS opportunities are presented for all employees of Tekfen and its subcontractors, and the performance indicators for all employees are reported together. All environmental data include projects, workplaces, and facilities of operationally controlled companies.

Feel free to send your comments and suggestions regarding the Sustainability Report to surdurulebilirlik@tekfen.com.tr.

* These companies account for approximately 88 percent of Tekfen Holding's consolidated turnover.

4

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Tekfen Holding AS published this content on 25 August 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 25 August 2023 07:15:05 UTC.