Climate Change Data

Environmental Metrics

ESG Focus Areas

• Community Investment
• Human Resources
• Information Technologies
• Occupational Health and Safety
• Environment

Environmental Achievements

• Reduced greenhouse gases (monitored daily at Anel Business Center)
• Solar PV installations on Anel Business Center roof meeting a portion of energy needs
• Waste recycling initiatives
• ISO14001 certification

Social Achievements

• 15 million man/hours with zero accidents at New Doha International Airport
• Established Çelikel Educational Foundation supporting education and arts
• Balls of Fire Scholarship Program
• Peaceful Communication with Young People project
• Wide-Angle Education Program
• Support for young artists at Gallery 5

Governance Achievements

• Established Risk Management Committee
• Established Audit Committee
• Established Corporate Governance Committee
• Established Early Risk Detection Committee
• Compliance with Corporate Governance Principles

Climate Goals & Targets

Environmental Challenges

• Increased competition in international projects due to global crisis
• Narrowing profit margins in the sector
• intense competition and shrinking investment budgets in telecom and IT sector

Mitigation Strategies

• Remaining selective in project approach to maintain profitability
• Focusing on regions less affected by global crisis
• Developing human resources and technical competencies
• Maintaining operational standards and business ethics

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: International Accounting Standards/International Financial Reporting Standards

Certifications: ISO14001

Third-party Assurance: AC İSTANBUL ULUSLARARASI BAĞIMSIZ DENETİM VE SMMM A.Ş.

Awards & Recognition

• Best Sub-Contractor (Hyundai)
• Certificate of Achievement (Taisei)
• Kariyer.net 2012 Respect for People Award

Environmental Metrics

ESG Focus Areas

• Community Investment
• Human Resources
• Information Technologies
• Occupational Health and Safety
• Environment

Environmental Achievements

• Generated energy through solar PV system installed on the roof and terrace of Anel Business Center.
• Minimized waste and recycled waste from production.
• Holder of ISO14001 certification.

Social Achievements

• Supported education through Çelikel Educational Foundation, providing scholarships to students.
• Supported arts and culture through Galeri 5, hosting exhibitions and music recitals.
• Received “Award for Respect to People” by Kariyer.net and “Award for the Fastest Growing Company in the Sector” by Yenibiris.com.

Governance Achievements

• Complied with Corporate Governance Principles announced by the Capital Markets Board (with some exceptions noted in the report).

Climate Goals & Targets

Environmental Challenges

• Adverse effects from political developments in Turkey and the region, global economic trends, devaluation of the Turkish lira, and outflow of foreign capital.
• High current deficit and structural fragility of the Turkish economy.

Mitigation Strategies

• Strengthened central management and improved field coordination.
• Implemented Central Management Software (SAP) to improve profitability, efficiency, and traceability.
• Long-term investments in other fields of activity.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Corporate Governance Principles announced by the Capital Markets Board

Certifications: ISO14001

Awards & Recognition

• Award for Respect to People (Kariyer.net)
• Award for the Fastest Growing Company in the Sector (Yenibiris.com)
• Certificates of Achievement in Occupational Health and Safety (TCAJV)

Environmental Metrics

ESG Focus Areas

• Corporate Sustainability
• Environment
• Occupational Health and Safety
• Social Responsibility
• Employee Well-being

Environmental Achievements

• Included in BIST Sustainability Index
• Recycled 61,008 kg of waste
• Provided 1/3 of the energy needs of the central building with solar panels
• Planted 6,121 saplings in Gaziantep to create a “Hope Forest”
• Reduced electricity consumption by turning off lights automatically

Social Achievements

• Organized “Today for Tomorrow” workshops with 552 colleagues
• Awarded “Respect for Human Award” at the Human Resources Summit
• Employed 1356 people
• Celebrated employee anniversaries
• Supported Çelikel Education Foundation programs
• Organized live music performances for young artists
• Organized volunteering activities

Governance Achievements

• Continued activities of Audit, Early Detection of Risk, Corporate Governance, Remuneration Committees
• Published Corporate Governance Principles Compliance Report
• Implemented a new supplier evaluation system
• Improved information security and backup systems
• Implemented BIM 360 pilot project

Climate Goals & Targets

Environmental Challenges

• Lawsuits against the company (Acredo Technology BV, Anel Telekom investors)
• Administrative fines imposed by the Capital Markets Board
• Increasing energy demand, global warming, environmental pollution

Mitigation Strategies

• Early Detection of Risk Committee established to monitor and manage risks
• Internal control and audit systems implemented
• Implemented energy saving measures (solar panels, automatic light shutoff)
• Working with licensed recycling companies
• Legal actions ongoing to resolve lawsuits

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Supplier evaluation system based on negotiation, cost, quality, logistics, and technology

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Development of energy-efficient products and renewable energy sources

Reporting Standards

Frameworks Used: Null

Certifications: ISO 14001:2015

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Solar energy projects

Awards & Recognition

• RoSPA Silver Award for occupational health and safety

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Recycled 67,944 kilograms of waste.
• Planted the second “Hope Forest” in Çanakkale with 6,500 saplings.
• Supplied 1/3 of the energy requirement and internal lighting at the head office through solar panels.

Social Achievements

• Developed an annual training program for occupational health and safety.
• Reached the goal of “0 work accidents” with 4 accidents resulting in 5 lost days.
• Supported programs carried out by Çelikel Education Foundation.
• Organized exhibitions in Gallery 5.

Governance Achievements

• Applied mandatory standards referred to in the Capital Markets Board’s Corporate Governance Principles.
• Established online systems for more efficient management of human resources processes.
• Established an Investor Relations Department.

Climate Goals & Targets

Environmental Challenges

• Not disclosed

Mitigation Strategies

• Not disclosed

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Reduced carbon emission by about 31% compared to 2019
• Recycled 35,720 kg of waste in 2020
• Planted 40,637 trees between 2014 and 2020

Social Achievements

• Supports for archeology and art
• Education oriented efforts through Çelikel Educational Foundation
• Supports the efforts intended to safeguard children from measles by means of donating to UNICEF

Governance Achievements

• Compliance with the Corporate Governance Principles issued by the Capital Markets Board
• Established internal audit and risk control mechanisms
• The percentage of female members in the Board of Directors is 28.57%

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic negatively affected operations, causing delays, additional costs, and reduced labor potential
• Delayed payments by employers and unresolved change orders in the Gulf Region
• Supply chain disruptions due to the pandemic

Mitigation Strategies

• Formed a committee to monitor and coordinate measures to minimize the impact of the pandemic
• Implemented technological tools and remote working software
• Negotiations with main contractors regarding additional costs due to delays

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI, UNGC

Certifications: ISO 14001

Third-party Assurance: EIRIS

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Separated 46.519 kg of waste in 2021.
• Reduced carbon emission intensity by 1% compared to 2020.
• Reduced carbon emissions caused by flights by 1% compared to 2020.
• Reduced paper consumption by switching to the e-invoice system.
• Reduced energy consumption with cloud infrastructure processes.
• Provided an average of 1/3 of the energy need and indoor lighting of its head office from solar energy.

Social Achievements

• Established the Çelikel Education Foundation in 2007 to increase the quality of education.
• Organized solo and group exhibitions of national and international young artists.
• Supported the protection of children in need from measles by making a donation to UNICEF.

Governance Achievements

• Applied mandatory standards of the Capital Markets Board’s Corporate Governance Principles.
• Adopted the majority of non-mandatory standards.
• Board of Directors held 44 meetings in 2021 with an 87.8% participation rate.
• Increased paid-in capital by 32.5% to reach 265 million TL.

Climate Goals & Targets

Environmental Challenges

• Exchange rate fluctuations impacting trade receivables, other receivables, and inventories.
• Cancellation of the Schiphol Airport New Pier contract.
• Termination of the Abu Dhabi Midfield Terminal Buildings project contract.
• COVID-19 pandemic impacting market conditions and causing rent losses.

Mitigation Strategies

• Classified 77.4 million USD revenue accrual amount from the Abu Dhabi International Airport project as long-term in the balance sheet.
• Initiated delivery of ongoing works and final account works for the Schiphol Airport project.
• Negotiated a contract with Trojan General Contracting LLC to complete the remaining electrical works at Abu Dhabi International Airport.
• Implemented remote working system and reduced office density to mitigate COVID-19 risks.

Supply Chain Management

Responsible Procurement

• Supplier & Subcontractor Selection and Assessment Procedures; Subcontractor / Supplier Environmental Sustainability Commitment is signed.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI, UNGC

Certifications: ISO 14001

Third-party Assurance: EIRIS (in line with BIST 100 Sustainability Index)

UN Sustainable Development Goals

• Goal 3
• Goal 4
• Goal 5
• Goal 7
• Goal 8
• Goal 9
• Goal 10
• Goal 11
• Goal 12
• Goal 13
• Goal 15
• Goal 17

Anel’s activities align with these SDGs through various initiatives described in the Sustainability section of the report.

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Separated 42,948 kg of waste in 2022.
• Approximately 15 thousand tons of waste was recycled and 30% growth was achieved in 2022 by Anel Doğa Entegre Geri Dönüşüm Endüstri A.Ş.

Social Achievements

• Established an annual occupational health and safety training program, providing training to 116-365 colleagues.
• Support for education through Çelikel Education Foundation, providing scholarship support and internship opportunities.
• Support for art through Gallery 5, hosting 35 exhibitions and 288 artists.

Governance Achievements

• Compliance with many of the Capital Markets Board's Corporate Governance Principles.
• Established an Audit Committee, Corporate Governance Committee, Early Detection of Risk Committee, and Nomination and Remuneration Committee.

Climate Goals & Targets

Environmental Challenges

• Arbitration proceedings regarding receivables from TAV-CCC-Arabtec JV for the Abu Dhabi Midfield Terminal Buildings Project.
• Financial distress and loan termination by Denizbank A.Ş., leading to financial restructuring efforts.

Mitigation Strategies

• Ongoing arbitration proceedings.
• Application for financial restructuring with Denizbank A.Ş. and other creditor banks.

Supply Chain Management

Responsible Procurement

• Subcontractor / Supplier Environmental Sustainability Commitment Letter

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: UNGC

Certifications: ISO 14001

UN Sustainable Development Goals

• Goal 3
• Goal 4
• Goal 5
• Goal 7
• Goal 8
• Goal 9
• Goal 10
• Goal 11
• Goal 12
• Goal 13
• Goal 15
• Goal 17

Initiatives align with the stated SDGs.