2020 Carbon Disclosure Project (CDP) Report

TURKISH AIRLINES

TURKISH AIRLINES INC.

CDP Climate Change Program 2021 Report

FY 2020

www.esgturkey.com

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TÜRK HAVA YOLLARI A.O. CDP Climate Change Questionnaire 2021

Wednesday, July 28, 2021

Welcome to your CDP Climate Change

Questionnaire 2021

C0. Introduction

C0.1

(C0.1) Give a general description and introduction to your organization.

Established in 1933, Turkish Airlines has been the flag carrier airline of the Republic of Turkey for 87 years. Turkish Airlines' main fields of activity are all types of domestic and international passenger and cargo air transportation. Turkish Airlines, which was originally established as a wholly state-ownedstate-owned enterprise, was included in the scope of privatization in 1990. Today, 50.88 percent of the Company's shares have been offered to the public, and T.C. The

49.12 percent share in the Privatization Administration of the Ministry of Treasury and Finance was transferred to the Turkey Wealth Fund in 2017. 1 Group C share is owned by T.C. It belongs to the Privatization Administration of the Ministry of Treasury and Finance.

The paid-in capital of the Incorporation is TL 1.38 billion. The Incorporation owns six subsidiaries and 12 joint ventures, adding up to 18 in total. Subsidiaries mainly consist of companies that provide services in the fields of maintenance, catering, ground handling and fuel supply As the airline flying to the most countries and international destinations in the world, Turkish Airlines flies to a total of 324 destinations as of the end of 2020, of which 52 are domestic and 272 are international. Turkish Airlines increased the number of aircraft in its fleet by 8.7% in the last 5 years to 363 by the end of 2020, of which 338 are passenger aircraft including 104 widebody and 234 narrow-body and 25 are freighters.

Turkish Airlines, which is listed on the Istanbul Stock Exchange (BIST) under the name "THYAO", is subject to the provisions of the Turkish Commercial Code (TTK) and the regulations of the Capital Markets Board (CMB). Adopting the principles of transparency, fairness, responsibility and accountability in all its operations, Turkish Airlines complies with all mandatory principles from the Corporate Governance Principles determined by the Capital Markets Board, and pays utmost attention to comply with non-mandatory principles. Turkish Airlines' Board of Directors consists of nine members, three of which are independent, elected by the General Assembly.

Turkish Airlines, together with its subsidiaries, employs more than 61 thousand people worldwide. Turkish Airlines has grown steadily at double-digit rates in the last 10 years, becoming one of the airlines with the largest global network in the world.

Our Incorporation has managed to maintain the strong growth trend that it has been carrying out for more than 11 years with the increasing service quality in cargo operations, without any interruption this year. Turkish Airlines has been a member of Star Alliance since 2008 Turkish Airlines, the airline that flies to the most countries in the world, connects many points in Turkey and the world with its flight network reaching 127 countries, 319 cities and 324 destinations. Carrying 74.3 million passengers in 2019, Turkish Airlines carried 28 million

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TÜRK HAVA YOLLARI A.O. CDP Climate Change Questionnaire 2021

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passengers with 363 aircraft in its fleet in 2020, making it the airline with the least decrease in passenger numbers among its competitors.

We are deeply committed to our goal of contributing to sustainable development by carrying out our activities with a sense of responsibility towards society, economy and the environment. Our sustainability program is built on four pillars: Governance, Development, People and the World, each of which contains many important topics within its own. Except for three of the key topics covered, the others are internal matters; Contribution to the growth of the economy, society and local development at our flight destinations are important external issues. We will continue to take our priority determination process further in the coming years by receiving feedback from our stakeholders on the issues we have mentioned under the material issues. Sustainable Development Goals priority topics;

• Increasing fuel efficiency and reducing emissions to combat climate change
• Waste management
• Resource efficiency
• Fleet modernization
• Sustainable Aviation Fuel
• Noise Management
• Carbon Pricing
• Sustainable Catering
• Single Use Plastics
• Customer satisfaction
• Access to products and services
• Training
• Flight Safety
• Flight Security
• Supporting biodiversity
• Human rights and employee development
• Employee health and safety and well-being
• Contribution to economic development
• Diversity and gender equality
• Innovation and entrepreneurship
• Contribution to Local Development at Our Destinations
• Responsible Supply Chain Management
• Our Contributions to Economic and Social Development
• Financial Performance

C0.2

(C0.2) State the start and end date of the year for which you are reporting data.

	Start date	End date	Indicate if you are providing emissions data for
			past reporting years
Reporting	January 1,	December 31,	No
year	2020	2020

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TÜRK HAVA YOLLARI A.O. CDP Climate Change Questionnaire 2021

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C0.3

(C0.3) Select the countries/areas for which you will be supplying data.

Turkey

C0.4

(C0.4) Select the currency used for all financial information disclosed throughout your response.

USD

C0.5

(C0.5) Select the option that describes the reporting boundary for which climate- related impacts on your business are being reported. Note that this option should align with your chosen approach for consolidating your GHG inventory.

Operational control

C-TO0.7/C-TS0.7

(C-TO0.7/C-TS0.7) For which transport modes will you be providing data?

Aviation

C1. Governance

C1.1

(C1.1) Is there board-level oversight of climate-related issues within your organization?

Yes

C1.1a

(C1.1a) Identify the position(s) (do not include any names) of the individual(s) on the board with responsibility for climate-related issues.

Position of	Please explain
individual(s)
Board-level	In our Incorporation, the Sustainability Committee, whose members are composed
committee	of executives at the Turkish Airlines Senior Management level, has been
	established. The Sustainability Committee aims to create value by ensuring that
	the economic, social and environmental sustainability aspects carried out in
	different processes within our Incorporation are performed in a linked cycle. With
	this; responsibility for Turkish Airlines' impact on the economy, environment and
	society rests with the Board of Directors and the Executive Committee. In this
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TÜRK HAVA YOLLARI A.O. CDP Climate Change Questionnaire 2021

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regard, as in the company's performance in all matters, The Board of Directors andthe Executive Committee are primarily responsible for monitoring and evaluating climate change management. The Sustainability Committee reports directly to the CEO.

Turkish Airlines Sustainability Committee is chaired by Assistant General Manager(Financial). Members of the Sustainability Committee assume the vice chairmanship of the Assistant General Manager (Human Resources). Committee members consist of the titles of Assistant General Manager (Marketing and Sales)

• Sustainability Committee Member, Quality Assurance President - Sustainability Committee Member, Corporate Sustainability Management Manager (Sustainability Committee Secretariat). Therefore, the Chairperson of the Sustainability Committee is on the Board of Directors, the highest decision-makingbody of the Incorporation.

	Sustainability Committee convenes at least once every quarter of the year,
	additionally it reconvenes in the cases where important issues arise regardless of
	time. In general, it convenes at least 4 times a year. Management Evaluation
	Meetings are held every 2 weeks as Senior Management meetings. At these
	meetings, decisions regarding sustainability are also taken. For instance, the
	decision to "evaluate cooperation for a biofuel flight in a line to be determined in a
	way that is certified and will not impose any obligation on our partnership" is one of
	the current decisions taken at the Senior Management Meeting on this subject.
Chief Executive	Our efforts to combat the climate change is followed at the highest level by our
Officer (CEO)	CEO and our CEO is an executive member of Board of Directors. We consider
	climate change as a strategic issue that requires full integration into business
	processes and decision-making mechanisms and consider reducing our impact in
	this context as a fundamental component of our sustainability understanding.
	For this purpose, a Sustainability Committee was established in our Incorporation,
	the members of which are Turkish Airlines Senior Management level executives.
	With this, the responsibility for the impacts of Turkish Airlines on economy,
	environment and society lies with the Board of Directors and the Executive
	Committee. Sustainability Committee reports directly to the CEO.
	As examples of the decisions approved by our CEO are to "evaluate cooperation
	for a biofuel flight in a line to be determined in a way that is certified and will not
	impose any obligation on our partnership".
Chief Financial	Our Incorporation considers climate change as a strategic issue that requires full
Officer (CFO)	integration into business processes and decision-making mechanisms and
	considers reducing our impacts in this content as a fundamental component of our
	sustainability approach. For this purpose, a Sustainability Committee was
	established in our Incorporation, the members of which are Turkish Airlines Senior
	Management level executives.

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