STRATEGIC DRIVERS

Tekfen Group’s main drivers of focus for ensuring its existence well into the future are defined as “Strategic Drivers ” in its Sustainability Strategy. The three main headings determined in this context, “Climate Crisis,” “Innovation,” and “Employees and Society,” are also among the main areas of focus on the global sustainability agenda.

Climate Crisis

As a result of the escalating climate crisis, which poses a threat to all life forms on Earth and demonstrates increasingly pronounced impacts annually, the risks associated with extreme weather events, including droughts, floods, and severe hurricanes, are intensifying at an exponential rate. The 2023 Global Risks Report by the World Economic Forum estimates that insufficiency in mitigating climate change, a failure to adjust to climate change (reducing emissions, water consumption, pollution, plastic use, etc.), extreme weather conditions, biodiversity loss, and the depletion of natural resources will be the greatest global risks within the next 10 years.

The Turkish State Meteorological Service (TSMS) interpreted the potential implications these severe global risks will have on Türkiye in their Türkiye 2022 Climate Assessment Report and noted that 2022 registered the highest number of extreme weather events of all times (extreme heatwaves, heavy rainfalls, storms, hurricanes, drought, floods, and melting glaciers).

Mitigating climate change requires science-based planning and roadmaps. The Global Risks Report considers failure in reduction strategies to be the second-most severe risk in the next 10 years. Organisations play a key role in preventing such failure.

Net-Zero Economy

Net-zero emissions is a global target aimed at tackling climate change by 2050. The Paris Agreement stipulates a transition to a net-zero economy before 2050 to curb global warming by 1.5 degrees Celsius compared to the pre-industrial era. The scale of global decarbonisation to achieve this requires systemic economic and social adjustments, and economic incentives and sanctions in favour of a net-zero economy to enable the transformation of sectors, organisations, and business models.

Presenting a new economic growth strategy in the face of the climate crisis, the Green Deal is a plan that aims to make the European Union climate neutral by 2050 and offers a significant opportunity for the transition to a net-zero economy.

A signatory to the Paris Agreement, Türkiye updated its Nationally Determined Contribution (NDC) pertaining to targets to reduce greenhouse gas emissions in line with the European Green Deal, and submitted the updated document to the United Nations Secretariat in 2023.

Companies moving towards a net-zero economy are observed to apply a comprehensive and holistic management model to convert risks into opportunities. Transitioning to net zero offers three main areas of opportunity to organisations:

1- Quick response in R&D and innovation projects to achieve more cost-effective and more efficient decarbonisation processes and products;

2- Replacing high-emitting products and processes with low-emitting product and process design responding to the next-generation customer and market demands, and circumvent potential market loss due to global emission regulations;

3- New lines of business to support decarbonisation efforts as outlined in the first two categories. (Six Characteristics Define the Net-zero Transition - McKinsey)

In line with developments in the world and our country, Tekfen Holding has accelerated its efforts to achieve net-zero emissions by 2050.

Management Structure

The responsibility for climate-related matters falls on the highest executive level at Tekfen Holding, which is the Board of Directors. However, there are committees in place within the Company to assist the Board of Directors with successful execution of their roles and responsibilities on climate. Among these, the “Early Detection of Risk Committee” and “Corporate Governance Committee” support the Board of Directors on climate-related matters. The climate-related responsibilities of the Board and these two Committees include developing strategies and overseeing the management of climate-related risks and opportunities.

All climate-related matters except risk management are undertaken by the Corporate Governance Committee. Reporting to the Corporate Governance Committee is the Sustainability Committee chaired by the President of Tekfen Holding Group Companies. The Sustainability Committee is responsible for holistic management of all climate- and sustainability-related matters as well as creating strategies, roadmaps, targets, policies, and reports necessary for mitigation and adaptation to climate change which sits at the core of the Group’s “Bridging Prosperity” vision, while also ensuring integration of sustainability into all core business processes in line with the Group’s priorities, and assuring active participation of the Group Companies in these processes.

The President of Tekfen Holding Group Companies, who serves as the chair of the Sustainability Committee, informs the Corporate Governance Committee as well as the Board of Directors on the risks, opportunities, various scenarios, and possible actions.

Climate Risks and Opportunities

The primary focus of Tekfen Holding’s climate crisis management is its activities with chemicals, which also cover the fertiliser industry with the highest Scope 1 and 2 emissions, and its contracting activities, which also cover the oil and natural gas industries. The Engineering and Contracting Group and the Chemistry Group, which have the largest shares in Tekfen Holding’s turnover, operate in industries vulnerable to the effects of climate change, which poses significant risks for both areas of activity.

The Carbon Border Adjustment Mechanism, established as part of the climate neutrality plan by the European Union, foresees taxation per metric ton of greenhouse gases emitted during the manufacturing of products exported to the EU. The Carbon Border Adjustment Mechanism, which will enter into force on October 1, 2023, is expected to further increase the legal and political risks in carbon-intensive industries including steel, cement, and fertiliser.

The “Carbon Border Adjustment” will initially apply to carbon-intensive industries including iron-steel, aluminium, fertiliser, and electricity, which are subject to high risks of carbon release. Once entirely implemented, the Mechanism will cover 50 percent of emissions within the EU Emissions Trading System. (Carbon Border Adjustment Mechanism - European Commission)

Accordingly, as one of the biggest manufacturers in the Turkish fertiliser industry, Toros Agri is likely to be directly impacted by the “Carbon Border Adjustment Mechanism” in its commercial relations with the EU. Due analyses, research, and investments are underway to minimise Group-wide risks and to convert them into opportunities, as well as to boost the resilience of Toros Agri with corresponding adaptation and mitigation plans and strategies.

The Early Detection of Risk Committee monitors and manages risks across Tekfen Holding and convenes once every two months with the Group CEO, Risk Director, Vice Presidents, and Risk Managers. The Committee identifies risks (including climate-related) that threaten the existence, growth, or continuity of the Company, determines actions to mitigate and prevent them, and takes action to effectively manage these risks. Group Companies report periodically to enable risk monitoring. The Early Detection of Risk Committee reviews these reports once every two months, and submits major risks, comments, and evaluations to the Board of Directors.

Tekfen Holding identifies climate and water risks and opportunities, and integrates them into its business strategies. The main climate risks identified by Tekfen are:

Policy risk

Due to the Carbon Border Tax, the carbon tax payable at the border for the products we export to the EU may lead to a decrease in profitability.
With the Green Deal, the consumption of chemical fertilisers is expected to decrease by 20 percent in EU member states, which may lead to a decrease in our chemical fertiliser exports.
With the Emissions Trading System, which is expected to be implemented in Türkiye soon, we will see an increase in operational costs.

Market risk

With the decreasing share of fossil fuels in energy, new investments in fossil fuels are expected to decrease in the coming period. This situation poses a significant risk for our Engineering and Contracting Group Companies, which carry out most of their projects in the oil and gas industries.

Technology risk

Low-carbon technologies in production are influential for Toros Agri, which operates in an emissions-intensive industry.

Reputational risk

International initiatives to combat climate change and the increasing demands of local communities and NGOs may lead to increased stakeholder pressure on Tekfen’s contracting activities in the oil and natural gas industries and fertiliser production activities that cause high N₂O (nitrous oxide) emissions.

Physical risks

The agriculture industry is one of the industries at greatest risk from the climate crisis. Extreme weather events such as storms, floods, hail, and heat waves lead to the shrinkage of agricultural lands and the deterioration of soil quality, which decreases the viability of fertiliser usage and farmers’ access to fertilisers due to reduced purchasing power. Reduced fertiliser use negatively affects agricultural production efficiency and the farmer’s economic conditions while posing a significant threat to food security. While the decrease in fertiliser consumption poses a risk for Toros Agri, the change in precipitation and the frequency increase of extreme weather events will likely adversely affect Tekfen Agri’s agricultural production activities.

Tekfen Group Companies take different steps to manage climate risks and to seize opportunities.

Engineering and Contracting Group

A working group has been established within Tekfen Engineering to develop the company’s competencies in designing environmental technologies. This group has researched traditional and next-generation environmental technologies and identified the target markets for the Engineering and Contracting Group. The content of the activities carried out is covered under the following subjects and supported by the relevant projects and communication channels:

Traditional Environmental Technologies: Water treatment, industrial and domestic wastewater treatment, air pollution and control, sulphur recovery, and flue gas remediation, and solid waste management.
Clean Energy and Production Technologies: Waste-to-energy (traditional biogas), waste-to-biofuel/biochemicals (gasification process), plastics recycling (chemical recycling), solar power, wind power, hydrogen and fuel cells, biofuel/biochemical production from 2G biomass, carbon capture, storage, and reuse.
Environmental Infrastructure: Water supply and distribution, wastewater removal, and sustainable transportation.

With the decreasing share of fossil fuels in energy, new investments in fossil fuels are expected to follow suit in the coming period, presenting a market risk for the Contracting Group. The Group diversifies its quote portfolio and fields of activity in line with its competencies to brace against the risk.

Toros Agri

Toros Agri, through its well-versed multi-disciplinary working group, continued to implement its roadmap for action on the early preparation and adaptation strategy for the “Carbon Border Adjustment Mechanism” and the “Emissions Trading System,” which stood out as one of the major risks for the company. Toros Agri also launched its roadmap to Net-Zero Carbon Emissions. The company progressed on the verification of emissions reduction projects and corresponding investments to reduce its carbon footprint across its entire value chain and, subsequently, on obtaining carbon certifications (carbon credits) for verified emissions reductions (vers).

The target of reducing chemical fertiliser use as part of the EU Green Deal From Fark to Fork and Biodiversity Strategy for 2030 and the shrinkage it will cause in the market is another major risk for Toros Agri. To this end, Toros Agri continues its work on expanding its portfolio of plant nutrition products with a focus on specialty fertilisers, as well as organic and organomineral product offerings to manage its risks and opportunities created by changing market conditions. By expanding its product portfolio, the company has a solid plan to generate some of its sales volume from organomineral, microbial, inhibitor, and biostimulant fertilisers. The EU certification process of organic fertiliser contents has been completed. Furthermore, investments in the Gönen and Meram Renewable Energy Plants, both successful examples of the circular economy, boost Toros Agri’s share in the organic fertiliser market.

Tekfen Agri

Meanwhile, Tekfen Agri carries out seed breeding projects for seeds resistant to new climatic conditions and drought.

The Group Companies conduct energy studies at all fixed facilities, and energy efficiency projects are determined and implemented accordingly. Tekfen Group also contributes to the “Bridging Prosperity” vision with energy-efficient and sustainable buildings and infrastructure services in its real estate development and facility management activities.

The Carbon Disclosure Project (CDP) details information on climate risks and management.

Participating in the CDP Climate Change Program for the first time in 2017, Tekfen Holding became one of the Climate Leaders of Türkiye by achieving a “B” rating in the CDP Climate Change Program in 2022.

Climate Targets and Indicators

Tekfen Holding aims to achieve net-zero emissions by 2050 in line with climate-crisis efforts and initiatives. The company launched the “Tekfen Net-Zero Roadmap” in 2021 to lay out a tangible plan to achieve net zero, and continued to work on identifying science-based emissions targets towards the 1.5°C goal in 2022.

Tekfen continues to work toward total compliance with the medium- and long-term emissions reduction targets set in 2020. The current medium- and long-term targets of the Group are:

Target 1: By the end of 2025, the total Scope 1+2 emissions will be reduced by 15 percent compared to 2019.
Target 2: By the end of 2037, the total Scope 1+2 emissions will be reduced by 40.2 percent compared to 2019.

Tekfen Group Companies completed two new projects in 2022 that contributed to emissions reduction while minimising operational emissions. As a result of these projects, the Group has achieved approximately 2,374 MWh in energy savings and nearly TRY 32.7 million in financial savings in 2022.

Total Greenhouse Gas Emissions (tCO2e)

(Scope 1+2)

Total Renewable Energy Production

(Waste Heat, Solar and Biomass - thousand MWh)

59%

With the solar panels installed on the roof of Tekfen Construction's Ceyhan Manufacturing Plant, 59% of the facility's electricity needs are supplied from renewable energy sources.

Tekfen Construction

In line with the net-zero targets, the company generates electricity from solar power panels relying on renewable energy. As of 2022, the share of renewable energy in total energy use in our facilities is 30 percent at the FNN Sustainability Centre of South Anatolia Main Repair and Maintenance Facility and 59 percent at the Ceyhan Manufacturing Plant.

Tekfen Engineering

The HiFlex (High Storage Density Solar Power Plant for Flexible Energy Systems) project, launched in 2019 to reduce the carbon footprint of the Barilla pasta factory in Foggia, Italy, requires a tower-type concentrating solar power plant. Tekfen Engineering undertakes the solar power site engineering of the EU-backed project.

Tekfen Engineering is one of the partners of the “ESCALATE” project supported by the European Commission under the Horizon Europe program. Having received a grant for the project, Tekfen Engineering is responsible for the design, install, and operation of a mobile hydrogen refueling station, and the preparation of a hydrogen refueling standard for the battery and hydrogen fuel-cell vehicles.

You can read more on the HiFlex and ESCALATE projects under the Innovation chapter of the 2022 Sustainability Report.

Tekfen Manufacturing

Tekfen Manufacturing obtained the International Renewable Energy Certificate (I-REC) for its Derince Plant, relying entirely on 100 percent renewable energy across the facility.

Toros Agri

Toros Agri launched its roadmap to Net-Zero Carbon Emissions to assess opportunities along the value chain to reduce greenhouse gas emissions and to develop decarbonisation targets in line with the net-zero goal. In this context, the company finalised its emissions reduction strategies throughout its value chain by 2050 in line with international standards and completed project evaluations, feasibility studies, as well as finalising the process of identifying priority investments.

The Nitric Acid Production Facility at the Mersin Plant is the greatest source of Scope 1 emissions for Toros Agri. Within the scope of the preparations to install a new N₂O (nitrous oxide) catalyst system, suitable technology, reduction method, and design for the facility were evaluated and determined. A detailed technical evaluation process is still underway to ensure that the designated solution helps reach the desired reduction targets without undermining the facility’s production efficiency, product quality, safe operation limits, and useful economic lifecycle of the plant. The goal of the catalyst investment is to achieve a reduction of 80 to 85 percent in N₂O emissions, which play a major role in climate change. The project is planned to be completed in 2023 and aims to reduce the Group’s total scope 1 emissions by 600,000 to 650,000 metric tons of CO₂.

As for the Verified Emission Reduction (VER) certificates for the Toros Agri facilities, Gönen and Meram Renewable Energy Facilities advanced to the Gold Standard (GS) final report and verification process, respectively; and the Samsun Production Plant completed a registration on Global Carbon Council (GCC) for waste-heat-recovery energy generation.

Toros Agri Mersin Plant

Tekfen Agri

The European Union and TÜBİTAK projects performed at the Agripark R&D Centre continued in 2022. The goal is to improve agricultural productivity and farmer welfare through collaboration with international organisations and universities while reducing the environmental impact caused by operational activities with innovative products resistant to drought and efficiency studies in production processes. In 2022, three TÜBİTAK projects were submitted, one of which was on an international scale, and over 20 business ideas are on hold on the database.

The International Consortium Meeting of the Sustainable Agriculture Matrix (SAM) project, run in partnership with Sabancı University, Toros Agri and Tekfen Agri, and supported by the Belmont Forum, took place in İstanbul in 2022. Approximately 20 researchers from six different countries attended the meeting.

You can read more on Tekfen Agri projects under the Innovation chapter of the 2022 Sustainability Report.

Tekfen Tourism

Improvement works have been carried out since 2014 to reduce the environmental impact of Tekfen Tower. As of 2021, the entire building uses LED lighting. The engines of the cooling towers connected to the air conditioning system, one of the largest energy consumers in the building, were renewed with high-efficiency engines and integrated into the automation system, enabling them to operate at the required speed. Additionally, the automation system of the radiator assemblies in the building was made controllable with a web-based interface, resulting in more efficient and effective air conditioning.

In 2022, the company took off to install a waste heat recovery system on the natural gas chimney at the building. The system is scheduled to launch operations in 2023 to achieve a total 90,000 kWh energy saving per year. The ISO 50001 Energy Management System certification process, initiated this year, is planned to be completed in 2023 as well.

Tekfen Foundation

Türkiye’s and Europe’s first carbon-negative biorefinery under the project Integrated Biorefinery Concept for Bio-Economy Driven Development (INDEPENDENT) commenced operations at Boğaziçi University’s Kilyos Sarıtepe Campus. The facility, supported by the Tekfen Foundation in the construction of the laboratory building, will manufacture 11 different moss-based biotechnological products including biofuels, functional foods, and biofertilisers.

Boğaziçi University carbon-negative biorefinery project

Use of Natural Resources and Waste Management

The efficient use of resources is vital for a sustainable future. In March 2020, the European Commission approved the circular economy action plan, a building block for Europe’s new agenda priority on sustainable growth, the European Green Deal. A prerequisite to achieving the EU 2050 climate neutrality goal and preventing biodiversity loss, the action plan will accelerate the transition into the circular economy, relieve pressure on natural resources, and enable sustainable growth and employment. (Circular Economy Action Plan - European Commission)

Tekfen carries out projects to prevent waste generation at the source, reuse the waste, and thus preserve the value of the resources following the principles of a circular economy. The company continuously conducts research, improves its business processes, and makes investments to enhance efficiency while reducing resource consumption in all areas.

With its resource efficiency investments, Tekfen aims to use natural resources such as raw materials, energy, and water more effectively. Tekfen also aims to create more value with less input while contributing to reducing the environmental impact of its stakeholders with products and services such as correct fertilisation guidelines and practices that support the reduction of water consumption in addition to green buildings.

Water Management

The climate crisis translates into a water crisis and the increasing water stress aggravates the consequences of the climate crisis in many regions. Research indicates that seven major sectors are responsible for 70 percent of global clean water pollutants and use: textile, food, energy, industry, chemical, pharmaceutical, and mining. The industry and energy sectors account for 19 percent of total clean water withdrawals while agriculture accounts for 72 percent. (Partnerships and Cooperation for Water, Industry and Energy - UNESCO)

Competition for freshwater between cities and agriculture is projected to grow due to rapid urbanisation, for which urban water demand is projected to increase by 80 percent by 2050. (Partnerships and Cooperation for Food and Agriculture - UNESCO)

Türkiye is among the countries that experience water shortages and faces the risk of becoming a “water-scarce country.” The current 1,400 cubic meters per capita is predicted to drop to 1,100 cubic meters by 2030.

Tekfen Group Companies considers water as one of the most valuable natural resources and work to identify risks and opportunities related to water, manage water correctly, and reduce their water footprint.

The main water risks identified by Tekfen are:

Decreasing agricultural productivity due to the water crisis might economically impact small-scale farmers. This will reduce the number and purchasing power of farmers, a major customer group of Toros Agri, subsequently bringing fertiliser sales down.
Tekfen Agri also faces the risk of decreased productivity in agricultural production due to increasing water stress.
Both water supply and quality are expected to deteriorate. We expect legal pressure to intensify against deteriorating water quality and nitrate pollution stemming from agricultural activities. This might escalate compliance costs regarding nitrate pollution in fertiliser operations at Toros Agri.

Detailed information on water risks and management can be found in the Carbon Disclosure Project (CDP) report.

Tekfen Holding was one of only six companies in Türkiye and one of 107 companies worldwide to receive an A score in the CDP’s Water Security Program, which evaluated 2,437 companies from all over the world in 2022.

Tekfen Group Companies take different steps to manage water risks and seize opportunities.

To use water effectively and efficiently, Tekfen Agri invests in technologies that monitor plants’ water needs and uses smart irrigation systems. Sensors measuring soil moisture and weather stations are used in Alanar Fruit Company orchards to ensure efficient water use. Only drip irrigation and mini sprinkler systems are used in these orchards.

Studies are carried out at Tekfen Agri and Toros Agri R&D Centres to develop products and seeds compatible with changing climatic conditions. Through its R&D work and new portfolio of offerings, Toros Agri increases its production and sales of specialty water-soluble fertilisers. Specialty fertilisers are preferred for drip and sprinkler irrigation systems as they require less water. Toros Agri also contributes to prevent nitrate pollution by helping farmers apply fertiliser best management practices through 4R Nutrient Stewardship principles in enabling farmer use the right fertiliser source at the right time, the right rate and the right place. To do so, Toros Agri uses farmer capacity building programs and digital and face to face training tools such as training videos, the Toros Çiftçi App, and face-to-face farmer trainings through its Farmers Academy and Technical Agronomists.

To minimise overall water withdrawals, Toros Agri Samsun Plant launched a new project to recover raw water used as a coolant at the ammonia storage facility. Scheduled to be completed in 2023, the project will save 907,200 m3 of water per year as well as 259 MWh in energy savings and nearly TRY 1 million in financial costs. The amount of water saved corresponds to the annual water consumption of 3,000 households.

Toros Agri Samsun Plant

The Water Treatment and Wastewater Recycling and Recovery Project is still underway at Toros Agri’s Mersin Plant. After completion, the project will enable the treatment of wastewater, the recovery of ammonia and nitrate in wastewater, and the rehabilitation of the existing demineralisation system at the facility.

As part of the pre-commissioning of Tekfen Construction’s ongoing Satellite Haradh Gas Compression Plants Pipeline Package project in Saudi Arabia, 35,000 m3 of water was saved through reuse in 2022, totalling 270,000 m3 throughout the project’s entirety.

Total Amount of Water Withdrawn (megalitres)

With its resource efficiency investments, Tekfen Group Companies aim to use natural resources such as raw materials, energy, and water more effectively. The Companies also carry out numerous projects in line with the principles of the circular economy to prevent waste generation at the source, reuse waste, and preserve the value of resources.

Waste Management

Depleting natural resources present substantial business opportunities to organisations determined to restore natural ecosystems. A key step here is to preserve the efficiency of raw materials and products before they become waste, and then to ensure recycling. The amount of global waste generation, however, is expected to reach 2.2 billion metric tons per year by 2025, with only 15-20 percent of total waste recycled. Furthermore, in addition to harming human and environmental health, mishandling waste aggravates climate change. (Reducing Waste is Critical for Building a Circular Economy - World Economic Forum)

Reducing waste at the source, correct disposal, and adopting circular economy principles are critical for sustainability. The adoption of circular economy principles and the renewal of systems in line with these principles lead to positive environmental, social, and economic results. Innovative business models suitable for the circular economy create new employment areas on top of reducing carbon emissions while enabling the creation of new financial resources for the private sector. (Circular Economy: Definition, Importance and Benefits - European Parliament)

The waste management approach by Tekfen Group Companies stipulates reducing waste stemming from operations, sorting at the source, and recovering the eventual waste. In line with this waste management strategy, Tekfen follows the “zero-waste” goal, a resource and waste management approach based on circularity. The “zero-waste” approach postulates avoiding the excessive use of resources and preventing, reducing, recycling, and recovering waste. Producing compost and energy from organic wastes, recycling waste and bringing it into the economy, reusing construction waste in other operations, and reducing food losses in agriculture with climate-resilient agriculture models are some of the Company’s best practices to this end.

Ten Tekfen Company plants received the “Basic Level Zero Waste Certification” in 2020 and 2021. At Tekfen Tower, the requirements for the transition to the Zero Waste Management System were fulfilled in 2021, waste management systems were completed in 2022, and the application was concluded for “Basic Level Zero Waste Certification” the same year.

Tekfen Group Companies carry out projects to prevent waste at the source and to minimise waste/reduce waste to zero:

Tekfen Tower, İstanbul

Engineering and Contracting Group

The Engineering and Contracting Group recycles or reuses waste generated during construction activities and minimises dust formation by using reclaimed asphalt at temporary construction sites.
Biodegradable waste, including raw vegetables and fruits, from the Tekfen Manufacturing Derince Plant are handed over to Derince Municipality. The municipality then composts the collected organic waste to use as fertiliser.

Toros Agri

There is no process-based product waste arising from Toros Agri’s fertiliser production facilities. Wastage that occurs during production is re-used in production in line with quality control and assurance criteria.
Toros Gönen Renewable Energy and Toros Meram Renewable Energy, subsidiaries of Toros Agri, produce biogas and generate electricity from the organic wastes they obtain from their regions while also producing organic and organomineral fertilisers from gasified waste. Successfully demonstrating the principles of the circular economy, these businesses not only ensure the disposal and use of organic wastes in the region but also generate energy and introduce new products to the economy.
Following the environmental sustainability strategies that focus on ensuring waste management at the source and through recycling to ensure more circular economy opportunities, a Phosphogypsum (PG) Working Group was established within the R&D Centre with the participation of senior executives from all relevant business units and production facilities also for the use of PG reserves at Toros Agri’s Mersin and Samsun Plants and to turn PG into a resource for alternative uses in multiple industries. The PG Working Group focuses on exploring a variety of innovative ways such as producing high-added-value products by refining PG from its chemical and physical impurities, its use as a raw material, as a soil regulator to increase soil and plant efficiency, as an additive in plaster and cement industries, and as a filler in road construction. As a result of academic and corporate collaborations in the area, the use of phosphogypsum as a calcium sulphate soil regulator has been officially registered.

Toros Gönen Renewable Energy Plant

Tekfen Agri

Tekfen Agri started to measure the environmental footprint of its products by carrying out the Life Cycle Assessment (LCA) and completed the “Cradle-to-Gate” LCA for sesame seeds in 2020. As a result of the studies conducted, Tekfen Agri has obtained the Environmental Product Declaration (EPD) certificate. The company is also the first company in Türkiye to receive an EPD certificate in the agriculture and food industries, and also the first company globally to receive an EPD certificate for sesame seeds.
As part of the Zero-Waste Project carried out at the Agripark R&D Centre, vegetable wastes are sent to the biogas facility for energy and organic fertiliser production. With the Agripark Compost Project, the company has invested in a composting machine to compost the organic wastes.

Tekfen Tourism

Tekfen Tourism (Tekfen Services) sorts organic wastes, oil wastes, electronic wastes, and other recyclable wastes coming from the cafeterias at the source and sends them to licensed companies for proper disposal.

Biodiversity

Biodiversity is an essential component for the continuity of life on earth. Genes, species, and ecosystem services are critical inputs to many production processes, and businesses need healthy ecosystems to treat and distribute their waste and maintain soil and water quality. However, as humans exhaust natural resources at an unprecedented pace, putting the planet under immense pressure, the risk of unbalancing ecosystems and biodiversity loss escalates.

Tekfen Group, operating in industries that impact biodiversity, such as construction and agriculture, is committed to taking necessary measures for the conservation of ecosystems and species during its activities in line with its Biodiversity Policy . Management of the biodiversity risk is based on the Biodiversity Action Plan, the Ecology Management Plan, and the Environmental Impact Assessment Reports. To that end, the Group carries out activities such as wildlife observation and protection practices, the relocation of species found in project areas to similar habitats, and rehabilitation.

Innovation

Science, technology and innovation (STI) are crucial for resilience and adaptation, as the crises of recent years have shown. Creating solutions based on these three principles and engaging with other social stakeholders are the most important components of the radical change needed to tackle global crises. (OECD Science, Technology and Innovation Outlook 2023: Enabling Transitions in Times of Disruption - OECD)

Following world-shifting megatrends such as the climate crisis, population increase, demographic and social change, urbanisation, and technological advancements, Tekfen integrates digital transformation and innovation into its businesses and allocates resources to initiatives that bring new technologies to its practices. As one of the three pillars of Tekfen’s sustainability vision, R&D and innovation efforts include sustainability performance optimisations of business processes, products, and services.

Tekfen Holding companies operate in industries open to innovation and technological development. New engineering practices, digitalisation, and automation shorten the business processes in contracting projects, minimise error rates, and contribute to safer working environments by reducing occupational health and safety-related risks. In the agriculture industry, the main subjects of the innovation approach include the development of seeds resistant to changing climatic conditions and drought, the responsible use of natural resources, innovative production methods that will increase agricultural productivity, advanced agriculture technologies, and low-carbon fertilisers and harvesting methods. Tekfen Agri and Toros Agri carry out these activities under their R&D Centres’ leadership.

Toros Agri R&D Centre, Mersin

million TRY

In 2022, nearly TRY 73 million was invested in R&D across the Group.

R&D Studies

Today, the critical technologies needed to develop new products, services, and business models depend heavily on R&D investments by companies. With their R&D and innovation strategies, companies also significantly improve their sustainability performances.

Tekfen invests in innovative technologies that create added value and benefit both the society and the environment across all its business lines to ensure service quality and customer satisfaction, to improve competitiveness, and to support its sustainable transformation. In this context, the Company focuses on developing a culture of R&D and innovation by creating structures and mechanisms that support innovation within the Group.

Group Companies have a total of four R&D centres. In addition to its R&D centres, Tekfen conducts both internal and external R&D, innovation, and entrepreneurship activities in a corporate framework through Tekfen Ventures and the FNN Tekfen Incubation Centre at Boğaziçi University.

In 2022, nearly TRY 73 million was invested in R&D across the Group. These efforts resulted in four patents and one utility model application.

Toros Agri R&D Centre and Tekfen Agri Agripark R&D Centre employ 40 full-time equivalent employees, 24 of whom are full-time R&D personnel. Tekfen Manufacturing Design Centre carries out its activities with 27 employees.

Toros Agri R&D Centre, Mersin

Toros Agri

Representing Toros Agri’s science-based innovative approach and power, the R&D Centre was established in 2017 in the Mersin Production Facility as the first R&D Centre working on plant nutrients in Türkiye. The R&D Centre focuses on: developing innovative products that advance agricultural productivity and comply with the EU Green Deal climate neutrality requirements, locally producing products that are currently not produced in Türkiye, improving production processes, reducing plant nutrient loss rates, encouraging energy efficiency in production, decreasing environmental impact, enhancing soil productivity and physical structure, creating circular economy opportunities with the use of by-products and secondary resources, and implementing waste management.

The Toros Agri R&D Centre cooperates with local and foreign organisations, scientific institutions, and universities on projects to support agricultural development in line with the vision for sustainable agriculture. There are three currently running TÜBİTAK 2244 projects held in cooperation with Mersin University and Ankara University on raising a competent workforce for the industry, and TAGEM-backed projects held in collaboration with Çukurova University and the Bahri Dağdaş Research Institute.

In the centre, studies are being carried out to develop slow-release nano-fertilisers, to reuse phosphogypsum reserves and bring it back to the economy, and to develop an anti-cake product. In addition, studies to develop organomineral fertilisers are ongoing within the scope of the project program supported by the General Directorate of Agricultural Research and Policies (TAGEM).

In 2022, Toros Agri cooperated with Erciyes University, Çukurova University, and İstanbul University and created applications as part of “S-ATP: Sustainable Agriculture Technologies Platform to Adapt to the Global Climate Change in Turkish Agricultural Production” and to “BLUE PLATFORM: Developing Innovative Solution Models and Products to Ensure Sustainable Use of Marine Resources and Enhance Food Supply Security.” The S-ATP and BLUE PLATFORM projects involve the development of solid and liquid fertilisers with microbial additives and their greenhouse and field trials.

Studies for the Sustainable Agriculture Matrix (SAM) Consortium were maintained in cooperation with Sabancı University and Tekfen Agri. The funding for the SAM Consortium was granted on the international platform in 2020 under the leadership of the Maryland Centre for Environmental Science and under the call of the Belmont Forum. The SAM, which measures sustainable agriculture in terms of environmental, economic, and social aspects, was developed within the project’s scope. Studies on upscaling national SAM indicators to a global level are still ongoing. The assessment processes are also underway for project cooperation with national and international organisations in response to numerous calls as part of the international support programs.

In the context of R&D and innovation culture:

International peer-reviewed journals approved 11 articles prepared by Toros Agri R&D Centre, and six were published. The aim is to further develop scientific literature for the industry by creating platforms where scientific studies can be shared with academia.
Since 2019, Toros Agri has been publishing the İNOVATİF - Toros Innovation Bulletin to promote a culture of innovation. The bulletin includes innovations in the agricultural industry, technological developments in agriculture, sustainable agricultural practices, and interviews.
Toros Agri participated in and contributed to the Green Growth Technology Road Map: Chemicals and Fertiliser Industry by the TÜBİTAK Department of Science, Technology, and Innovation Policies.

Agripark R&D Centre, Adana

Tekfen Agri

Tekfen Agri directly contributes to overall agricultural productivity and quality by providing farmers with high-quality seed, seedling, and sapling varieties. The company’s Agripark campus in Adana is Türkiye’s first technological agriculture centre, and it remains one of only a few today. Since 2004, the centre has been producing disease-free seeds and seedlings through the tissue culture method and conducting crop seed breeding studies. In 2018, it was registered as an R&D centre. It now utilises Anatolia’s rich biodiversity as a resource and carries out studies for the future of Turkish agriculture.

The R&D Centre has worked on a total of 17 projects to date. Six of these have been completed, and 11 are ongoing. Of these projects, 11 are self-funded, four are nationally funded, and two are internationally funded. In addition, there are three international TÜBİTAK projects, one of which was applied for in 2022. More than 20 business proposals are in the database. TÜBİTAK’s 2244-Industry Ph.D. program was launched to support the employment of Ph.D. researchers in the industry. In 2022, it continued with two separate projects that will shape the future of Turkish agriculture.

Within the scope of the studies carried out at Agripark R&D Centre:

Agripark is the first and only private R&D centre registered in plant production and seed breeding. It produces more than seven varieties of potato seeds using its potato seed tissue culture method, one of its main areas of focus. Additionally, various R&D projects are carried out at the centre to develop disease-resistant potato varieties.
Agripark develops efficient and high-quality bread wheat, durum wheat, triticale, and barley varieties by utilising the rich gene resources of Anatolia, historically the homeland of wheat. In 2022, two bread wheat varieties (Tekfen 1028, Tekfen 2040) were registered by the Central Directorate of Seed Registration and Certification (TTSM) of the Turkish Ministry of Agriculture and Forestry. In addition, applications for registering two other bread wheat varieties (Tekfen 1189, Tekfen 2171) were made, and production permits were obtained.
It uses modern biotechnological methods and accelerated breeding technology besides classical methods in wheat breeding and has so far developed 14 bread wheat varieties.
Tekfen maintained its cooperation with the Sabancı University Nanotechnology Research and Application Centre (SUNUM), Akdeniz University Technology Transfer Office, Çukurova University, and the General Directorate of Agricultural Research and Policies.
As part of a small- and medium-sized enterprises (SMEs) cooperation, the TÜBİTAK-funded project “Ensuring the Traceability of Fruits from the Branch to the Consumer with Blockchain Technology,” run with blockchain specialist TUBU R&D Inc., was successfully completed in 2022.
Since 2009, the “Project for the Development of Domestic and National Wheat Varieties through the Use of Ancestral Seeds,” which has been carried out at Agripark in cooperation with Çukurova University, received an award at the Sustainable Future Summit organised by the Turkish Federation of Automotive Maintenance Associations (TOBFED) for its contributions to agricultural sustainability.
Agripark’s close cooperation for banana saplings with Tropic Biosciences, which is in Tekfen Ventures’ investment portfolio, also continued in 2022. Tropic Biosciences conducts breeding studies to enhance the nutritional value and yield of bananas, a vital food item worldwide and ensures they remain free of viruses and fungal diseases.
As part of the Open Innovation Program, collaborations were made with the Sabancı University Nanotechnology Research and Application Centre (SUNUM), Çukurova University, Erciyes University, Sabancı University, TUBU Kobi, DOKTAR Kobi, and the Scientific and Technological Research Council of Türkiye (TÜBİTAK).

Tekfen Engineering

HiFlex Concentrated Solar Power Plant

Tekfen Engineering handles all engineering efforts for the solar field of the Italian pasta brand Barilla, one of the leading pasta producers worldwide. This solar field is a main component of the EU-supported HiFlex Project initiated by 11 companies from seven countries and aims to reduce the brand’s carbon footprint. As part of the project, a demonstration plant consisting of five heliostats (solar tracking mirrors) was commissioned in 2022 in İstanbul Technopark, where Tekfen Engineering’s R&D office is also located.

ESCALATE Project

Reducing emissions from the transportation industry also plays an important role in creating a net-zero emission economy model. Sustainable biofuels, low-emission hydrogen and derivatives are the leading fuel alternatives for reducing carbon emissions from land, sea and air transportation.

Tekfen Engineering has been awarded a grant under the European Commission’s Horizon Europe program with its “ESCALATE: Powering EU Net Zero Future by Escalating Zero Emission HDVs and Logistic Intelligence” project. Thirty-seven partners from 13 different countries are involved in the ESCALATE project. Mercedes-Benz Türk, BMC, and Ford Otosan are the platform manufacturers from Türkiye.

As part of the project, the vehicles are planned to travel 500 km per day for six months with battery-powered and hydrogen fuel cell trucks in 10 separate demos, one of which will be virtual. Tekfen Engineering will design, manufacture, and operate the mobile hydrogen refueling station for the duration of the project. In addition, the European Union Hydrogen Refueling Stations standards will be established as part of the project. The total duration of the project is 42 months.

Tekfen Ventures

Tekfen Ventures is a corporate venture capital firm established in 2016 to seize opportunities in the world of global entrepreneurship and to invest in early-stage tech startups. The company closely monitors innovative initiatives in the main industries in which Tekfen Group operates; comprehensively examines the market positions, business models, and plans of these promising initiatives; and invests in companies at the right stage in cooperation with leading global financial and institutional shareholders.

The field trials between Toros Agri and Phospholutions, a Tekfen Ventures investment in soil technology; the agreement between Tropic Biosciences and the Agripark R&D Centre for banana sapling starter materials; and the cooperation between Petra, the developer of non-contact tunnelling technology, and Tekfen Construction are all examples of seized strategic, commercial and mutually beneficial opportunities.

In 2022, Tekfen Ventures included Laverock Therapeutics in its investment portfolio. This new biotech startup aims to employ cell and gene therapy in the healthcare industry. Laverock, a subsidiary of Tropic Biosciences, one of Tekfen Ventures’ previous investments, utilises gene technology to treat life-threatening diseases such as cancer and Type 1 diabetes.

As of 2022, Tekfen Ventures has 12 startups operating in various areas in its portfolio. In the upcoming period, the company will continue to support sustainability-oriented and life-improving innovative initiatives that redesign the global agricultural, construction, and manufacturing industries.

Tekfen Ventures Investments

You can learn more about these initiatives on Pages 116 to 135 of the Tekfen Holding Annual Report.

Avvir

Offering AI-powered technologies to the construction industry, Avvir’s reality analysis solutions improve project workflows, schedules, and outcomes by leveraging onsite data and enhanced building information modelling (BIM).

Claroty

This security company focuses on cyber-physical systems for industrial facilities, businesses, and the healthcare industry. It offers solutions to organisations worldwide to protect their industrial assets, connections, and processes.

Latch

Latch is a smart access technology company that provides smart locks and access management solutions for residential and commercial properties.

Mosaic

Mosaic utilises computer technologies to help construction companies of all sizes in the housing industry work more efficiently. With its technology-driven approach, the company aims to standardise the construction process rather than the products and materials.

Petra

Petra develops non-contact tunnelling technologies that can drill efficiently and inexpensively in all geological structures. The rock drilling robot it has developed facilitates the transfer of electricity, gas, water, and similar infrastructure systems to underground environments, making them safer and more economical.

Phospholutions

Phospholutions’s patented product RhizoSorb is a soil amendment and fertiliser additive that increases phosphorus absorption by crops. It is also used to increase phosphorus fertilisers’ efficiency and to reduce their environmental impact.

Pivot Bio

Pivot Bio uses microbes to produce and uptake nitrogen, which plays a key role in plant growth. This new approach reduces nitrogen loss from the soil through water and increases yields by continuously supplying crops with nitrogen. It also helps tackle global warming and surface water loss.

Sight Machine

Sight Machine is a complementary manufacturing data platform that offers software solutions to support profitability, productivity, and sustainability in the manufacturing industry as it collects all production information in an industrial facility and transforms it into real-time reports.

Soft Robotics

With the gripper system solutions it has developed for irregular and delicate products, Soft Robotics enables the transfer of different objects, individually or in groups, from one environment to another at high speed. The company launched its best-in-class pick-and-place system mGripAI, offering industrial robot solutions to the world’s leading food manufacturers and helping them enhance productivity and quality, reduce their carbon footprint, and lessen their dependency on human labour.

StrongArm Technologies

It utilises IoT sensors to enhance occupational health and safety and reduce the risk of workplace accidents.

Tropic Biosciences

This leading agricultural biotechnology company utilises its Gene Editing induced Gene Silencing (GEiGS) technology to develop high-performance varieties of tropical crops, including bananas, coffee, and rice, which are crucial to our global food supply, and to make these crops more resilient to diseases.

Laverock

Laverock Therapeutics is a biotech startup targeting enhancements to the cell and gene therapy subsegment of human therapeutics. It utilises the GEiGS Technology platform to develop tunable, easily scalable allogeneic cell therapies for tough-to-cure indications, including cancer and Type 1 diabetes.

Tekfen aims to increase operational efficiency by designing shared platforms and applications and corporate business solutions for Group Companies.

Digitalisation

In today's world, rapidly advancing digitalisation is increasing its importance day by day to maintain competitiveness in the business world while facilitating transformation. Digital transformation, which refers to the integration of digital technologies into an organisation to achieve greater productivity, efficiency, and sustainability, has come to represent a cultural transition in recent years, encompassing more agile and intelligent ways of doing business. (Digital Transformation: Statistics & Facts - Statista)

Tekfen places great importance on technology management for the continuity of its businesses and their competitive nature. Besides considering the needed system infrastructures, corporate business solutions, information security matters, and compliance issues, Tekfen considers every project in terms of sustainability and works toward lowering carbon emissions.

The Information Technologies Committee was established to coordinate joint Tekfen Group Company projects. The committee’s main activities are IT quality management standards, information security, and purchasing. The companies also added joint projects to their short- and medium-term business plans. In 2022, the decentralised system components of companies were united in the Tekfen Data Centre in Tekfen Tower as a shared service point for the Group. In doing so, Tekfen has gained the potential to operate two data centres along with the Disaster Rescue Centre, established in Ceyhan in 2021. The centralisation of different data centres has minimised operation costs and reduced carbon emissions.

Tekfen Data Centre, Tekfen Tower, İstanbul

Operational Efficiency

As part of its digital transformation projects, Tekfen aims to increase operational efficiency by designing shared platforms and applications and corporate business solutions for Group Companies. To this end, TekFlow, the workflow and process management platform, was improved and new processes were developed to meet the needs of business units.

All current management documents have begun to be managed and archived through authorisation matrices on the Tekfen corporate document management platform. Business process management, document management, and enterprise resource planning applications run integrated with web services.
Artificial learning and machine learning algorithms have correctly forwarded requests to the relevant teams in the IT service request management application. This eased the workload of the experts responsible for demand assignments.
Tekfen Holding plans to implement the R&D infrastructure update project. Robotic processes are being designed for information technologies, human resources, and finance applications. Work is ongoing to ensure that manual tasks are performed by robots.

Cybersecurity

Cyberattacks continue to increase in line with the recent technological advancements. Widespread cybercrime and cyber insecurity rank among the top 10 most serious global risks in the short and long term. Beyond cybersecurity regulations, new initiatives and investment areas are becoming increasingly important in the effective management and mitigation of cyber risks. (Global Cybersecurity Outlook 2023 - WEF) (Global Risks Report 2023 - WEF)

Tekfen Holding applies ISO 27001 Information Security Management System standards for data privacy and security. All Tekfen Group Companies refer to ISO 27001 standards and continuously improve their effectiveness.
As part of information security, new software solutions have been integrated, and improvements have been made across Tekfen Holding to minimise security vulnerabilities that may be caused by remote access of all computer users. Design work has begun on the infrastructure that will monitor the security of users and systems 24 hours a day.
The installation of systems that continuously monitor system vulnerabilities and enable real-time action has begun. This enables the system trace records of each activity to be kept in detail.

Tekfen Construction

Under HSE, discrepancy reporting system processes were digitised, and a system enabling all employees to receive instant notifications through WhatsApp and company communication systems was developed.
Business intelligence reporting opportunities were implemented to help managers and employees with decision-making.
HR, HSE, and Quality and Technical Office modules of the software system were improved with robot infrastructure RoboTEK (Robotic Process Automation – RPA), which expedited operational tasks that used to take hours.
The Construction Management System (CMS) application is integrated with other production software. This has facilitated the tracking of the production and assembly processes of steelworks from planning to quality on a cost, quantity, resource, and progress basis in an end-to-end digital environment.

13,110

“Toros Çiftçi” is a farmer-friendly decision support application developed to benefit farmers through technological developments. By the end of 2022, there are 13,110 members registered in the system.

Toros Agri

"Toros Çiftçi" (“Toros Farmer”) Application

Digital farming applications are critical to a data-driven agricultural ecosystem. Digital technologies, which support farmers in making decisions and using their resources effectively, have a direct impact on the productivity and quality of the final product as they enable farmers to determine needs such as fertiliser application, fertigation and irrigation in agricultural areas, to use fertilisers at the right time and in the right way, and to monitor product development. The Toros Çiftçi app, commissioned by Toros Agri in 2016 to help farmers benefit from technological developments, is a free farmer-friendly decision-support app that can be downloaded on computers, smartphones, or tablets. Offering weather forecasts and soil & plant data, the app gives farmers suggestions while helping with timely and accurate production and operation decisions by following weather conditions on each field. Additionally, the drone imaging and analysis technology used by the mobile technical teams (Agronomists) of Toros Agri provides farmers with the most accurate information about the health and nutritional status of their fields and the most appropriate fertiliser application and fertigation recommendations.

By the end of 2022, 14,370 fields belonging to 11,845 farmers were registered in the Toros Farmer Database. Including farmers as well as authorised dealer accounts, there are 13,110 members registered in the system. In addition, in cooperation with Türkiye İş Bankası starting in April 2020, 9,344 fertiliser application and fertigation queries were received through the Imece mobile application with the Toros Agri logo.

Employees and Society

Talented and happy human resources are vital to achieving a competitive advantage through improved product and service quality. Tekfen Holding considers its employees the most valuable resource and their competence the strongest guarantee of its future. Tekfen’s business approach is shaped by a culture that promotes inclusivity, respects human rights, and provides a modern working environment for employees.

Tekfen follows an inclusive, pluralist and diverse human resources strategy, and offers equal opportunities to its employees, regardless of their religion, language, or culture. As a family of 12,000 people with nearly 5,000 company employees and subcontractors, Tekfen prioritises providing its employees with a fair, safe, healthy, and productive work environment that encourages development.

Tekfen Holding respects fundamental human rights in all business processes and does not use child or forced labour. Considering a diverse workforce a strength, the Group offers equal opportunities to all employees and rejects discrimination based on religion, language, age, skin colour, ethnicity, sexual orientation, disability, marital status, and more. Tekfen has a female employment rate of 9 percent and a female executive rate of 17 percent. Fourteen employees are currently benefiting from the nursery service.

Employees by Gender

Local Employment Rate

Employees by Category

Employees by Nationality

Tekfen Holding considers its employees the most valuable resource and their competence the strongest guarantee of its future.

Talent Management

Talent shortages are a common risk for all companies in recent years. Today, the global talent gap is at its highest level in 17 years. Seventy-seven percent of employers are struggling to find the right talent to fill vacancies. (2023 Global Talent Shortage Report - Manpower Group)

Tekfen Holding emphasises talent management for better risk management and offers its employees opportunities for:

Setting individual goals with the performance management system and evaluating the competencies needed to reach these goals,
Making remote work regular by establishing a hybrid working model focused on organisational agility,
Creating training programs to support the personal development of employees,
Implementing inventory applications that measure the competencies of the managers according to their roles to establish the organisation’s future manager profile.· Implementing inventory applications that measure the competencies of the managers according to their roles to establish the organisation’s future manager profile.

Tekfen Manufacturing Derince Plant, Kocaeli

73%

In 2022, 73 percent of the white-collar employees in our headquarters and fixed workplaces were provided with performance evaluations.

Performance Management

Implemented to direct Tekfen Group Companies toward common goals and reward high performance fairly, the Performance Management System creates goal cards for the employees every year in line with the company strategies. At the end of the year, individual achievements are measured through target-based evaluations, and the performance management process is completed by mutual agreement.

The Performance Management System was updated in 2022, following efficient performance management, systematic career management, and fair wage management goals. In this regard, the performance score calculation system has been simplified; the effect of individual achievements for employees that work independently from department goals has been increased; an interim evaluation process has been added; and individual attitude, behaviour, knowledge, and skill measures of employees have been integrated into the final performance scoring. The system has been integrated into promotions and wages for fairer and more systematic management of these processes.

Tekfen Performance Management System consists of the following practices:

Target cards are prepared for each company based on Holding and Group strategies, and company targets are assigned to individuals. At the end of the year, individual achievements are measured through target-based evaluations, and the performance management process is completed by mutual agreement. In 2022, a total of 1,097 performance target cards were logged for indirect employees at the premises of Tekfen Holding and Group Companies, and 5,361 individual performance targets were defined.
Company-based target cards prepared in line with Tekfen Holding’s strategy are aligned to the level of individual employees. At the end of the year, individual achievements are measured through target-based evaluations, and the performance management process is completed by mutual agreement. In 2022, 73 percent of the white-collar employees in our headquarters and fixed workplaces were provided with performance evaluations.
The Performance Management System also evaluates the required competencies. The evaluation output made with the 360-degree method are considered in the design of training-development programs and monitored to support employee career planning.

Revamped Talent Model

The Competence Model Renovation and Talent Management Design Project was conducted to define Tekfen’s talents and talent-sorting processes, and to redesign the competence model in line with Tekfen’s vision and needs. The project consisted of meetings with executives and workshops with managers from all levels. Tekfen Group’s changing needs were analysed with the new world’s needs and best practices across the globe. Tekfen’s current competence set has been revamped to integrate all HR processes, from recruitment and career management to performance evaluation and succession planning.

Organisational Agility and Hybrid Work

The World Economic Forum’s 2023 Future of Work Report emphasises that remote working models still offer advantages post-pandemic. The report found that 20.5 percent of the companies surveyed believe that international flexible working is necessary to reach and retain the right talent. (Here's What We've Learned from 3 Years of Working Remotely - WEF)

In addition, nearly three in five companies (57 percent) plan to introduce new time and location-independent working models and flexibility as talent shortages increase. (2023 Global Talent Shortage Report - Manpower Group)

Tekfen Holding prioritises implementing practices that are in line with the ever-changing trends in business life and the expectations of its employees. Under the leadership of the Human Resources Group Companies Directorate and as a part of organisational agility practices, the hybrid remote working system has been made permanent across Group Companies as of 2021. Accordingly, the remote work model rules were established, and the Remote Work Management System was commissioned to monitor remote work requests and manage the approval mechanism.

Gönen Renewable Energy Plant, Balıkesir

Development Programs

Tekfen’s development programs, which provide employees with new skills and help them improve their existing skills, also contribute to increased employee satisfaction and commitment. Tekfen aims to develop its existing talents through programs focused on next-generation competencies and to prepare its managers to adapt to changing needs and become corporate leaders. To meet these targets, a total of TRY 1.8 million was spent on employee training as part of development programs in 2022.

To that end:

The Leadership Program, hosted in cooperation with Koç University and spanning 5.5 days/132 hours of leadership improvement training, consisted of “Multidimensional Leadership Experience,” “Strategic Development and Application,” “Decision Making under Uncertainty,” “Positive Management Practices,” and “Managerial Stance.” The virtual sessions totalled 1,716 hours of training, and the average end-of-the-program satisfaction rate was 4.6/5.
The employees received 3,247 hours of training under e-training efforts.
Three hundred sixty-four employees attended the Hydrogen Technologies training (Hydrogen as Energy Transition Agent, Hydrogen Use and Its Industrial Effects, and Hydrogen Production, Storage and Transfer) held virtually in 2022.
Tekfen Group implemented the Internal Trainer Development Program in 2021 to pass on its years of knowledge, skills, and expertise to the next generations. Refresher courses to improve the digital training capabilities of internal trainers were conducted in the second half of 2022. Twenty-one employees attended the training.
Additionally, the employees participated in technical professional conferences, certifications, and uncatalogued (internal or open for general participation) training.

1.8

million TRY

In Tekfen, a total of TRY 1.8 million was spent on employee training as part of development programs in 2022.

Tekfen Workshop

Tekfen Workshop was established in 2018 to meet the development needs of all employees working under Tekfen Holding. The Workshop continued its activities in 2022 to support employee development and increase employee knowledge in different areas with in-class and virtual training, e-learning content, seminars, and online conferences.

Tekfen Workshop Mobile App

Open to general participation, the catalogue training was accompanied by the Tekfen Workshop Mobile Application to let employees request training quickly and easily. In this context, based on employee demand, six in-class, and 58 virtual training sessions were hosted in technical, management-development, HSE&Q, and T-House categories. There were 626 training attendees, and 8,110 hours of training sessions were conducted. The participant satisfaction rate at the end of the training averaged 4.6/5.

Employee Communication

Employee experience is not only the general feeling employees have about their work environment and company interactions, but also includes company culture, leadership, job satisfaction, and opportunities for growth and development. A positive employee experience can lead to increased productivity, top talent retention, a better company culture and the ultimate benefits to the bottom line. (HR’s Secret Sauce In 2023: Creating An Amazing Employee Experience - Forbes)

Tekfen Holding and Group Companies adopt open communication to increase employee job satisfaction and offer channels such as the Tekfen Human Resources (TİK) Mobile App and the Ethics Hotline to establish continuous communication and understand their expectations. Various practices maintain employee communication.

Adopting a “zero incident” target in all operations, Tekfen aims to instil OHS as an active company culture and fervently supports efforts in this regard to create a safe and healthy work environment and improve working conditions by continuous development.

Occupational Health and Safety (OHS)

Operating in high-risk industries such as construction and chemistry, Tekfen Group regards occupational health and safety (OHS) as a material issue. Adopting a “zero incident” target in all operations, Tekfen aims to instil OHS as an active company culture and fervently supports efforts in this regard to create a safe and healthy work environment and improve working conditions by continuous development.

Efforts continued throughout the year to ensure OHS Management System compliance and to popularise OHS culture across all Group Companies. In this context, the Group has developed a behaviour-oriented safety culture through regular site controls and audits as well as internal and second-party audits. Furthermore, on-the-job training continued on the detection of job-specific risks and necessary precautions.

By 2022, the number of Tekfen Group facilities with ISO 45001 certification had reached 18 and covered 5,780 employees.

Kashagan Main Works Construction Project, Kazakhstan

OHS management

HSE teams manage OHS and Environmental Management Systems across the Group Companies. The HSE & Quality departments under Tekfen Holding constantly monitor the OHS performances of the Group Companies. As of the end of 2022, 343 HSE and 83 healthcare professionals work under Tekfen.

Risk studies

OHS risk assessments of potential projects are made before the start of the projects, and these risk assessments are regularly reviewed for existing projects and facilities. In cases where process safety is required, HAZOP (Hazard and Operability) studies are carried out to identify hazards.

Inspections

Daily site controls and weekly site, internal, and third-party audits are carried out to ensure compliance with the management systems, regulations, and procedures. Tekfen Holding, along with the Uniform Method of HSE internal directive, determines the HSE strategy and minimum requirements for the Group Companies.

Employee involvement

Tekfen Holding appoints employee representatives in communication with employer representatives for national and international projects and ensures that employees’ views on OHS are included in the decision-making processes through regular meetings.

Occupational Health & Safety Performance Indicators

Industrial Benchmarking

Total Recordable Injury Rate (TRIR)

(1 million people)

Mustafa Aslan

HSE Director, Tekfen Construction

STAKEHOLDER TESTIMONIALS

Which factors make Tekfen Construction stand out with its successful performance in OHS?

Due to the requirements of being an international contracting company, Tekfen Construction recognised the importance of OHS a long time ago and established systems to ensure maximum compliance with OHS regulations in both its domestic and overseas projects when this culture was still almost non-existent in Türkiye. At this time, OHS units were established in Tekfen Construction Projects, resources were allocated for this issue and important work was carried out.

Could you share some information about OHS management and performance at Tekfen Construction?

Every year, we evaluate the previous year’s data when setting our OHS targets and set goals to achieve better values. At the end of each year, we organise a meeting with General Manager and other senior executives to review OHS targets’ realisation status, reasons, and, if necessary, additional resource needs. We monitor the OHS performance of projects/workplaces every month using 66 different KPIs and we make evaluations at the Corporate OHS unit. We discuss the important KPIs of the Project/Workplaces at the Board level. In the case of deviations from the target, we can take decisions at the highest level for improvement.

In our year-end evaluation, we make comparisons with IPLOCA and IOGP statistics, which collect and share with us data from companies doing similar work, especially in our industry. In the comparisons we have conducted so far, we can see that we have better results than both IOGP and IPLOCA statistics.

What are Tekfen Construction’s areas of development and future plans in OHS?

High risks in the oil and gas sector, and enormous potential consequences of accidents, make OHS much more important in this industry. By developing a significant part of its business portfolio in this area, Tekfen Construction not only utilises its knowledge/experience but also advances its OHS-related practices one step further as required by the industry. At Tekfen Construction, we have also digitised many OHS-related issues as part of our digitalisation program. We now create our performance and audit/observation reports digitally, distribute them to the relevant people, and automatically carry out action planning and follow-up. In the future, we aim to digitise more issues to make communication/follow-up/conclusion processes fast and complete.

OHS Training

To make OHS a part of its work culture and to reach zero accidents, Tekfen Holding prioritises increasing the OHS knowledge of all employees in all Group Companies and organises OHS training sessions. In this regard, all employees working under Tekfen Holding are provided with equal opportunities. The same rules apply and the same OHS opportunities are presented for all Tekfen employees and subcontractors. Additionally, the performance indicators for all employees are monitored together.

Click to read the book

Tekfen Construction

The “HSE Personnel Development Program,” established to bring together the health, safety, and environment (HSE) professionals tasked with projects and business facilities, continued in 2022. Additionally, the “Unsafe Situation/Behaviour Reporting” module was prepared and launched in collaboration with the Tekfen Construction Information Technology department to help employees easily report unsafe situations and behaviours they’ve encountered to the HSE department and to monitor ameliorating actions. HSE educational presentations were published monthly on various subjects such as energy savings and efficiency, disaster preparation, traffic safety, and smoking cessation on the TekNokta Portal, which is open to all Tekfen Construction employees.

Tekfen Construction’s occupational safety achievements in 2022

Connection Roads Project (Qatar) – 5 million working hours without lost time
Central Bank Project (Azerbaijan) – 1 million working hours without lost time
Dehydrator, Desalter and Transfer Units Project (Iraq) – 2 million working hours without lost time
ACE Platform Project (Azerbaijan) – 10 million hours without lost time

Toros Agri

Providing healthy and safe working conditions for its employees is one of the core objectives of Toros Agri, which is classified as a very high-risk category due to its production activities as well as the storage and handling of materials. In 2022, Toros Agri continued its on-site checks, routine and on-the-job training, regular field audits, internal audits, and second-party audits to ensure compliance with all management systems, regulations and procedures and to promote an OHS culture among employees.

The International Fertiliser Association awarded Toros Agri the “Protect & Sustain” certificate in 2018, the first and only Turkish firm to earn the certificate, which rates compliance with the highest security, quality, and environmental standards in the fertiliser industry and evaluates the efficiency of monitoring, measuring, and continuous improvement efforts on the company’s environmental, social, and economic footsteps on the entire value chain to ensure responsible production, distribution, and consumption. Inspections were completed in December 2021 and January 2022, and the company passed with no discrepancies to earn recertification with an “Excellence” score (96/100).

Toros Agri Ceyhan Plant, Adana

Social Investments

Tekfen’s social, cultural, and environmental protection activities have been an integral part of its corporate culture since day one. Using some of its added value in social projects, Tekfen launches various corporate responsibility projects in education, arts and culture, health, and development. Tekfen Holding’s “Bridging Prosperity” vision also forms the fundamental basis of its social investment programs. Social projects are designed to benefit both Tekfen and society by both contributing towards the solution of social and environmental problems, and aligning with the concept of shared value.

Alongside the Tekfen Foundation, Tekfen Group Companies also allocate resources to various social responsibility projects congruent with their goals and strategies. In 2022, the Tekfen Group Companies provided TRY 1.93 million in aid and donations.

Tekfen Foundation

In 1999, Tekfen established the Tekfen Foundation for Education, Health, Culture, Art, and Protection of Natural Resources to contribute to society under a corporate framework and to help build a liveable future. Drawing inspiration from its founding partners, Tekfen Foundation allocates significant resources to education, the country’s biggest need for a better today and a sustainable tomorrow, and arts and culture, some of the primary indicators of a society’s development. Tekfen Foundation, having realised countless projects to date, has been operating as a public interest group since 2004.

Tekfen Philarmonic, one of Türkiye’s most important arts and culture institutions, contributes to the delivery of classical music to large audiences with concerts across the country.

Education

The Tekfen Foundation provides scholarships to high school and university (undergraduate) students who need financial support and the children of Tekfen employees. Supporting more than 3,000 students throughout their education to date, the Foundation provided scholarships to 550 students in the 2021–2022 academic year and increased scholarship recipients to 600 for the following year.

Tekfen Foundation’s 24 full scholarship recipients at Darüşşafaka School graduated from middle school this year. The support for Daçka continued with a 2-million Turkish lira donation made to the scholarship fund during the year. The Foundation also provided 15 million Turkish liras to Galatasaray High School to support its various needs and renovated the school’s centuries-old “Backyard” in accordance with sustainability principles in the name of Tekfen Holding Co-Founder Ali Nihat Gökyiğit.

With its Music Scholarship, the foundation provides young talents with the opportunity to study at the most prestigious academies around the world. In 2022, scholarships were awarded to five students in this program. The Science Academy Foundation’s Young Scientist Awards, Boğaziçi University’s BAGEP Fund, and Education Reform Initiative (ERG) were continued to be supported.

Arts and Culture

Founded 30 years ago in 1992 as a chamber orchestra with the participation of artists from 11 countries around the Black Sea and going on to bring together musicians from 23 countries with the inclusion of countries from the Caspian Sea and Eastern Mediterranean to create a symphonic dimension, Tekfen Philharmonic has earned a prominent spot in Türkiye’s arts and culture scene.

Health

Working closely with state hospitals during the pandemic, the Tekfen Foundation continued to collaborate with the Cerrahpaşa and Çapa Medical Schools also in 2022. The foundation donated a portable Doppler echocardiogram to Istanbul Çapa Medical School Teaching Hospital’s Cardiologic Oncology department and hardware that simulates medical equipment such as basic life support, vital sign detectors, and defibrillators in augmented reality to Cerrahpaşa Medical School’s Emergency Applications Simulation Centre.

Social Development

The Tekfen Foundation supported family economies by providing micro-loans to 2,132 women, 1,081 of them in Soma and 1,051 of them in Mersin, as part of its cooperation with the Turkish Waste Prevention Foundation (TİSVA), which began in 2014. In addition, the “Women Farmer Loan” project, launched by the Foundation in 2021 in partnership with TİSVA and Toros Agri, aims to strengthen the presence of women in agriculture. By the end of 2022, 239 women farmers had benefited from this loan.

Women Farmers Loan

Toros Agri considers the active participation of women in the workforce essential for a sustainable society, sustainable local development, and a sustainable family economy. Correspondingly, it is a priority target for Toros Agri to boost the number of educated and conscientious women farmers and to empower women in social and economic life. To this end, Toros Agri operated as the field application partner in the Tekfen Foundation’s “Women Farmers Loan” project and the Turkish Waste Prevention Foundation to encourage women entrepreneurs aspiring to work in agriculture yet lacking financial resources to launch a business and to provide them with an opportunity with micro-loans.

The project was launched on a pilot scale in Manisa, Aydın, Nazilli, Izmir, Denizli, and Soma in the Aegean Region, reaching 80 women. Later extended to Antalya in 2022, the project’s reach increased to 159 women and a total of 1.95 million Turkish lira in loans to help them launch their own agricultural businesses. Toros Agri was the primary provider of applied training and on-site consultancy for permanent change.

So far, correct agriculture and crop cultivation practices have been implemented in 33 different crops with the consultancy provided by expert agricultural engineers from Toros Agri’s Agricultural Techniques and Digital Marketing team. This resulted in higher-quality products and increased yields, bringing idle land back into agriculture and enabling stakeholders to receive support to expand their businesses by an average of 40 percent in different capacities. Social impact analysis, carried out on the project’s first anniversary, showed that every lira invested in the project creates 6.60 Turkish liras worth of social benefit (SROI - social return on investment).

As a social innovation project, the program was the only finalist and winner of the “B2NGO Cooperation” category in the Sustainable Business Awards in 2022. The project was also presented as a case study in the “Empowering Women for Climate Resilience” panel of the UN Climate Change Conference in November 2022 in Egypt.

Tekfen Holding

Arts and Culture

Supporting a local play at the İstanbul Theater Festival as a “Show Sponsor with High Contribution” each year, Tekfen Holding continued its support with the opening play of this year’s event. The holding was also among the “Special Project Sponsors” at the 2022 Istanbul Biennial.

Tekfen Construction

Arts and Culture

Tekfen Construction supported archeological works in Küllüoba, a site near Eskişehir housing one of the earliest settlements in Anatolia, by granting two containers. The two containers donated to the excavation, conducted by Bilecik Şeyh Edebali University, will be used for archaeozoology and anthropology studies.

Toros Agri

Education

In 2022, the company met the maintenance, repair, and general needs of the Toros Agri Anatolian High School and Toros Agri Primary School, which were opened in the region of Toros Agri’s Ceyhan Production Plant.

Since its inception, Toros Agri has aimed to develop Turkish agriculture, to raise farmer awareness of good agricultural practices, and to increase farmer productivity and welfare by providing assistance primarily on correct and balanced fertiliser applications.

Local Development

The fertiliser industry is critical to ensuring sustainable food safety, an issue that has become even more prominent with the pandemic. Aware of its responsibility to this end, Toros Agri considers increasing the population of educated and conscientious farmers necessary to ensure fertiliser use efficiency and effective agriculture. Since its inception, Toros Agri has aimed to develop Turkish agriculture, raise farmer awareness of good agricultural practices, and increase farmer productivity and welfare by providing assistance in various issues, including correct and balanced fertiliser applications and soil, leaf, and water analyses. To this end, in 2018, Toros Agri started Toros Farmers Academy (Training Bus) and Agricultural Technique and Digital Marketing projects.

Put on the road as part of the project, the mobile Toros Agri Training Bus visited 114 locations in 2022, providing training and practical support to farmers and distributors on correct and balanced plant nutrition and sustainable farming methods.

The Agricultural Technique and Digital Marketing team provides on-site support to farmers across Anatolia with their technical vehicles. In 2022, the team conducted 6,970 vendor and 9,000 farmer meetings, 227 agricultural institution visits, 15 farmer conventions, two drone activities, and 105 educational activities in coordination with the Toros Agri Training Bus.

Launched in 2016, the Toros Farmer app is among the many pioneering efforts of Toros Agri designed to help farmers benefit from technological developments. You can learn more about the Toros Çiftçi app in the Innovation section.

More information about social investments is available in the 2022 Annual Report .