Global Compact Progress Report 2007-2009 - Vestel...5 Zorlu Holding Global Compact Progress Report...

Global Compact Progress Report 2007-2009

2 Zorlu Holding Global Compact Progress Report 2009

Contents

01 GlobalCompact

03 ScopeOfReport

04 AboutZorluHolding

10 AMessageFromTheChairman

12 SustainabilityofOurBusiness

13 OurStakeholders

14 HumanRightsAndLabor 15 LaborStandards

18 HumanRightsInZorluHolding

22 Environment

23 EnvironmentalPolicy

24GreenTechnology 30GreenEnergy 34GreenTextile

46 Anti-CorruptionAndBribery

47 CorporateGovernance 48 InternalAudit 49 InformationSafety 49 Community

55 AwardsReceivedDuringTheReportingPeriod


Global Compact

United Nations Global Compact announced and put into

force by United Nations in the year 2000 is a venture

providing guidance for companies on the subject of

sustainability and accountable business practices.

Global Compact is an important pioneering initiative

supporting local sustainable development in cooperation

with business world, non-governmental organizations

(NGOs) and local authorities. Zorlu Holding, which

carries out its activities in accordance with these

guidelines since its incorporation, has displayed its

will and decisiveness on this subject in international

platform by signing Global Compact in 2007.

This initiative progressed and improved on the basis

of voluntary undertaking rule comprises 10 principles

grouped under item heads human rights, labor

standards, environment and anti-corruption. The item

heads of “Global Compact” are as follows;


Global Compact

Human Rights

Rule 1: Businesses should support and respect the protection of

internationally proclaimed human rights: and

Rule 2: make sure that they are not complicit in human rights abuses.

Labor

Rule 3: Businesses should uphold the freedom of association and the

effective recognition of the right to collective bargaining:

Rule 4: the elimination of all forms of forced and compulsory labor:

Rule 5: the effective abolition of child labor: and

Rule 6: the elimination of discrimination in respect of employment and

occupation.

Environment

Rule 7: Businesses are asked to support a precautionary approach to

environmental challenges;

Rule 8: undertake initiatives to promote greater environmental

responsibility: and

Rule 9: encourage the development and diffusion of environmentally

friendly technologies.

Anti-Corruption

Rule 10: Businesses should work against corruption in all its forms,

including extortion and bribery.


“GlobalCompact”whichisrecognizedandadoptedby

allgroupcompaniessinceitsfirstsigningisvaluedasa

determinantsourcehighlyemphasizedbyZorluHolding.

Inthiscontext,thedevelopmentsandstagesachieved

withintheprocessaresetforthinthisreportbyfocusing

on4mainitemsand10principlesconstitutingthecore

valuesofglobalcompact.

Thisreportisthefirstprogressreportpreparedby

ZorluHoldingasofthesigningdateofGlobalCompact

(2007)untilnow.ThescopeofthisreportcoversZorlu

Holding,VestelElectronics,VestelWhiteGoods,Korteks,

Zorluteks,ZorluEnergyGroupcompanies.Themajor

reasonforconsiderationofthesecompanieswithinthe

scopeofthereportisthattheyaretheflagshipsofour

groupconductingvarietyofoperationsandprovidingthe

highestturnover.Thesustainabilitypracticesofthese

companiesareextensivelyincludedwithinthescopeof

thisreport;butsinceitisnotpossibletomentionallon-

goingoraccomplishedpractices,onlythemosteffective

practicesarecoveredinthisreport.Pleasevisitout

Web-sitewww.zorlu.comfordetailedinformationonthe

performancesofGroupCompanies.

Theeffortsspenttoimprovereportingprocessandto

higherlevelsofeffectivenessineachreportingperiod

arecontinuedintenselyasofthesigningdateofGlobal

Compact.Pleaseforwardusallyourinquires,viewsand

suggestionsregardingourreportviaourwebaddress

www.zorlu.com.

Scope of Report

Company Name Title Group Gross Sales Sectoral Rate

IntragroupRate

Total Assets

Sectoral Rate

IntragroupRate

VESTELELEKTRONİKSANAYİVE TİCARETA.Ş. Vestel 2,424,195,017 29.26 22.00 2,551,997,774 47.16 15.52

VESTELBEYAZEŞYASANAYİVE TİCARETANONİMŞİRKETİ

Vestel 1,307,306,439 15.78 11.87 815,893,827 15.08 4.96

VESTELDAYANIKLITÜKETİM MALLARIPAZARLAMAA.Ş.

Vestel 1,017,405,723 12.28 9.24 1,017,405,723 12.28 6.19

Vestel Total 8,285,540,540 5,411,508,227

ZORLUENDRÜSTRİYELVEENERJİ TES.İNŞ.TİC.A.Ş. Energy 324,348,029 29.35 2.94 189,117,963 5.94 1.15

ZORLUENERJİELEKTRİK ÜRETİMA.Ş. Energy 528,379,538 47.82 4.80 1,749,854,564 54.95 10.64

Energy Total 1,104,953,200 3,184,575,924

KORTEKSMENSUCATSANAYİVE TİCARETANONİMŞİRKETİ

Textiles 481,792,264 33.82 4.37 951,792,769 52.16 5.79

ZORLUTEKSTEKSTİLTİCARET VESANAYİA.Ş. Textiles 501,237,258 35.21 4.55 690,001,693 37.81 4.20

Textile Total 1,423,570,817 1,824,868,330

Property Total 5,763,971 1,751,564,766

Others Total 196,880,568 4,266,305,809

Zorlu Group Total 11,016,709,096 16,438,823,057


Zorlu Holding’s success story goes back to early 1950s,

opening up a whole new world of opportunity in Denizli

Babadağ, and since then appears as one of Turkey’s

leading enterprises playing important role in nation’s

economy by achieving the highest growth figures in

production, export and employment and promoting

competition in global markets.

In 2000s, Zorlu Holding, which ranks among the largest

companies in Turkey, expanded its activities into various

fields, including textile, property, electronics, energy

etc. Since the year 2006, Zorlu Holding operates in the

following four main fields:

• Home textiles

• Electronic products, information technologies and

durable consumer goods

• Property

• Energy generation

About Zorlu Holding


BycreatingTAÇbrandwithintheframeworkofexpansion

policyinhometextiles,in1980s,ZorluHoldingbecame

aleaderinhometextilesinTurkeyunderthenameZorlu

HoldingTextileGroup.Intheyear1994,VestelElectronics

isincludedwithinthegroup.In1996,ZorluHolding

enteredenergysectorbyfoundingZorluEnergy,thereby

increasingnumberofcompanies.Thiswasfollowedby

newinitiativesinpropertysectorin2006.

Intheyear1998,GroupexportsreachedUSD600M,

in1999USD680M,in2000USD852M.Despitethe

severeeconomiccrisesin2001,therehasbeenescalation

inZorluHolding’sexportfigure,climbingUSD879M.In

2006,theexportsreachedUSD1.3BandthenUSD3,153

Min2008.

ZorluHolding,withnearly57companiesand

approximately23,000employees,worksforTurkey’s

futureandlife-qualityofTurkishpeople.

Zorlu Group

Textiles Group

>Korteks>Zorluteks>LinensMarketing>ZorluForeignTrade

Vestel Group of Companies

>VestelElectronics>VestelWhiteGoods>VestelDigital>VestelForeignTrade>VestelDurableGoodsMarketing>VestelCIS>VestelDefenseIndustrials>AYESAŞ>Birim>VestelGermany>VestelFrance>VestelIberia>VestelItalySRL>VestelHollandBV>VestelTrade>VestelUKlimited>VestelElectronicaSRL>OYVestelScandinaviaAB>UTS-UnitedTechnicalServices, SPOLS.R.O.>VestproElectronicsS.A.>DexarMultimedia& Telecommunications>VestelUSA>CABOTCommunicationsLtd.>VestelElectronicIndia>VestekElectronicsResearch& Development>DeksarnetTelecommunications> IntertechnikaLLC(Russia)

Energy Group

>ZorluEnergy>ZorluO&M>ZorluIndustrial>Rotor>ZorluHydroelectric>ZorluElectricity>ZorluPetrogas>AmityOilInternational>ZorluNaturalGas>ThraceRegionNaturalGas Distribution>GaziantepNaturalGas Distribution>RosmiksLLC(Russia)>ZorluEnergyPakistan>DoradEnergy(Israel)>AshdodEnergy(Israel)>RamatNegevEnergy(Israel)>SoladEnergy(Israel)>ZorluNaturalElectricity Generation>ZorluGeothermalEnergy ElectricityGeneration>ZorluIntergasGMBH(Austria)>ZorluEnergyandConstruction

Property Group

>ZorluConstruction& Investment>ZorluProperty Development&Investment>Akmerkez (PasstelShoppingCenter)> Intermar


Home Textiles, Polyester Yarn

ZorluGroup’smainfieldofactivityismanufacturingand

marketingofyarn,curtainsandhometextiles(bedsheets,

quiltcoversets,boarders,tablecloth,piquet).

Accordingtofibertypes,themanufacturingcapacityis

580tons/dayinpolymer,400tons/dayinPOY(Partially

orientedyarn)and120tons/dayinFDY(Fulldrawn

yarn).KorteksYarn,thefirstcompanyofZorluGroup,

isoneofthelargestcompaniesinMiddleEastand

Europemanufacturingpolyesterfiberanditalsoranks

firstamongEuropeancompaniesinintegralcurtain-

manufacturing.Inadditiontotheabove,yarntexturingand

twistingprocessesareundertakenintheseplants,and

manufacturingcapacityfortextureyarnisreportedas350

tons/day,fortwisted,fancyandelastomericyarn25tons/

dayandairtexturedyarnas10tons/day.

InthemanufacturingfacilitiesbelongingtoZorluteks

Textile,therearefactoriesoperatinginthefieldsofhome

textile,curtain,woven-knittedtextile,textilefinishingand

apparelindustry.Inthehometextilemanufacturingplants

withanin-doorareaof108,000sqmeters,varioustypes

ofhometextileproducts,suchasquiltcoversets,piquet,

pillowcase,bedsheet,flexiblebedsheets,tablecloth,

cottoncurtainfabricandtowelaremanufacturedwith

annualoutputcapacityof96millionmetersbyusingtextile

loomsandmachinesthatareforthefirsttimeadvanced

inworldmarkets.40%ofthemanufacturedproducts

areexportedtodifferentpartsoftheworld,particularly

toAmerica,Europe,JapanandRussia;therestofthe

productionisreservedtomeetthedemandofleading

brandsinTurkey,likeTAÇandLinens.

ZorluteksTextile;engagesin,besidesnationalmarket,

distributionandmarketingoftextileproductsinCISand

overseascountriesthroughitsHeadOfficeinIstanbul.

AnotherimportantmissionofZorluteksTextileisto

furtherdevelopmarketpositionofTAÇlabel,aleader

ofhometextilessectorandtoensureperformance

ofmanufacturingprocessinsuchawaytocopewith

currentdevelopmentsinthemarketandtomeetthe

variablecustomerpreferences.Accordingtotheresults

ofresearchundertakenbyNielsenin2009;thepublic

awarenessofTAÇbrandreachedto100%.ZorluTextile

Group,bysettingupTurkey’sfirstchainstoresforlatest

andinnovativerangesinhometextileunderthename

Linens,becameapioneerinthesector.


Inaddition,ZorluTextileGroupholdsworld-widelicensing

rightsformanufacturing,distributionandmarketingof

hometextileproductsunderItalianBenettonandglobally

famousPierCardinbrands.Also,Valeronbrandcreated

byZorluTextileGroupcontinuestoattractcustomersin

Turkeyfollowingthestronginterestinthisbrandbythe

Europeancountries.

AfterseveralyearsofrapidgrowthZorluHolding’shome

textileactivitiesdeployedacrossfourcontinentsoutside

Turkey’sborders.PresentlyGroupowns12textile

manufacturing,marketingandsalescompanies,including

theonesinTurkey.

Electronic Products, Information Technologies and Durable Consumer Goods

VestelGroupofCompaniescomprising24companies,

12ofthembasedabroad,mainlyoperatesinelectronic,

whitegoodsandinformationtechnologyfieldsandis

definedasflagshipofZorluHolding.Vestel,asastrong

playerinTurkishandInternationalmarketsintherelevant

sector,ranksamongworld’slargestmanufacturers

withsuccessfullymaintainedtechnology,designand

developmentcompetencies.Today,Vestel,whichranks

#6amongtop10well-knownandprestigiousbrandsin

Turkey,reorientsthesectorwithitsextensiveproduct

rangeandservicequalityaimedtomeetcustomer

expectations.

Vestelhaswidestsalesandafter–salesservicesnetwork

inTurkeycomprising1,050salespointsand400after-

salesservicestations.Vestel,withitsmulti-brandstrategy

andconceptstoreapproach,offerswideproductportfolio

tothecustomerallaroundthecountry.

Vestel,asoneofthelargestOEMandODM

manufacturers,promotesitspositioninEuropeachieving

theleveloflargestmanufacturerinCRTandLCD

televisionsanddigitalTVreceiversandthemostrapidly

growingmanufacturerinwhitegoods.

Vestel,whichprovidesemploymentformorethan15,000

persons,undertakesmanufacturingprocessinManisa

andAlexandrov,Russia.VestelCitylocatedinManisais

thelargestindustrialcomplexinEuropeandthesecond

largestintheworldoperatingatasinglelocation.The

annualmanufacturingcapacityofVestelCity,withand

indoorareaof600,000sqmeters,ismorethan30million.


Presently,Vestelexportsto127differentcountriesand

offershigh-techproductstotheconsumersallaround

theworld.Vestel,whichconductsitsactivitiesinEU

countriesonOEM/ODMbasis,usessubsistencestrategy

bypromotingitsbrandinthecountriessurrounding

Turkey.Tothisend,itpresentsVestelbrandproductsto

theconsumersinthecountriessuchasTurkeyandRussia,

CIScountries,MiddleEast,andNorthAfricainthesame

timezone.

FollowingtheacquisitionofrightstoFinluxand

Luxortrademarksin2006,twowell-knownbrandsin

ScandinavianandNorthEuropeancountries,Vestelmoved

togrowinthemarketbymanufacturingproductsand

accomplishingforeignsalesunderthesetrademarks.In

theyear2008,VestelacquiredVestfrostbrand,oneof

themostprestigiouswhitegoodsbrandsinEuropeand

Russia.

In2007,Vestel,asafirstbrandadmittedtoTurquality

program,thefirststate-supportedbrandingprogram

inthefieldofdurablegoods,oncemorecertifiedits

eligibilitytocompetewithglobalbrandsinthesectorand

strengtheneditsprofileasachampionforundertaking

continuousexportactivitiesinTurkey.

Energy:

ZorluEnergy,thefirstcompanyofZorluEnergyGroup,

wasestablishedin1993tomeetelectricityrequirement

oftextilefactorieswithinZorluGroup.Thefirsttwopower

plantsofthecompanywereconstructedatLüleburgaz

andBursa.Inthemeantime,asaresultoftheincreasein

energydemandbytheGroupandindustrialplantsoutside

theGroup,itwasrequiredtoconstructnewpowerplants,

andZorluEnergybuiltnewnaturalgasplantsinYalova,

AnkaraandKayseri.

Theincreaseininvestmentspavedthewayfor

establishmentofnewcompaniestoundertake

constructionandengineeringworks,operationand

maintenanceofthepowerplants.ZorluEnergyGroup

hasachievedsustainablegrowthinenergysector.Parallel

totheeffortstoencouragewideuseofnaturalgasin

Turkeyandgasdistributionprivatizationprocess,the

Grouphasundergonesignificantchangestoitsstructure

fornaturalgasdistributiontoresidencesandindustrial

zones.Inordertocreatenewenergygenerationand

naturalgasdistributionresources,theGroupinvestedin

newcompaniesforgasandoilexplorationandobtained

licensesforsaleofenergyandnaturalgas.


ZorluEnergyGroup,differentthanothercompanies

operatinginenergysector,demonstratesaunique

corporatestructure,withoutasampleinenergysector,

byitswiderangeofactivitiesthatcanbesummarizedas

energygeneration/sale/distribution,naturalgasproduction/

distribution/sale“turnkey”construction,long-term

maintenanceandoperationofpowerplantsattheproject

stage.FurthertotheinitiativesinTurkey,ZorluEnergy

GroupmadeseriesofinvestmentsinEurope,Asiaand

MiddleEastmarketsbytakingadvantageofopportunities

createdbyrapidlyincreasingenergyconsumption.The

projectscarriedoutinRussia,PakistanandIsraelaremajor

stepstakenbytheGrouptoachievethisgoal.

Inordertoenableuseofglobalresourcereserves

economicallyefficientmanner,ZorluEnergyGroup

havealwaystakenproductandservicediversification

ruleasbasisinitsdevelopment,andtothisend,gave

prioritytoexploitationofrenewalenergysourcessuch

ashydroelectric,windandgeothermalresources.Inthis

context,theGrouphasadded,toitsportfolio,newpower

plantsoperatingwithhydraulicandgeothermalsourcesby

participatinginprivatizationtenders.

Presently,ZorluEnergyGroupowns,indifferentregions

ofTurkey,5naturalgas,7hydraulic,1geothermaland1

fueloilthermalpowerplantswithinstalledcapacity630

MWandsteamcapacity192tons/hour.Theannualnatural

gasproductioninlicensedregionsis320million(average).

ThenaturalgasdistributioninfrastructuresinThraceand

GaziantepRegionsarecontinuedwithfullspeedand

maintenanceandoperationservicesareprovidedforthe

domesticandforeignpowerplants,andinvestmentsare

madeinordertocompletetheprojectsunderconstruction

withintheshortesttime.

Property:

ZorluPropertywasestablishedin2006withinthebody

ofZorluHoldingwiththepurposeofdevelopinggenuine

projectsforconstructionandimprovementofresidences,

offices,businesscenters,shoppingmalls,hospitalsand

hotelsonvaluableplotswithinandoutsidethecountry.

Presently,ZorluPropertyhas3activeprojects.These

areZorluCenter,ZorluKonakResidenceandZorluLevel

Project.


Distinguished Stakeholders,

Our word is currently undergoing vertiginous changes. Globalization forces us to conform with world economic integration during the course of this change period; individuals, institutions and states are operating interactively within an apparent or non-apparent, sustainable development network. Today, when a change occurs in a country, it sometimes deeply affects the world, likewise the recent global crises.

A Message from Chairman


Theglobalcrisesfacedininternationalfinancemarkets,withintime,transformedintoproductioncrises,whichisthecauseofcurrentworldeconomicrecession.Today,wetakethesignsofeconomicrevitalizationandbelievethatthegrowthcurvewillinclineallovertheworld.

We,asZorluGroup,arespendingutmosteffortstofulfillourpartofobligationstoprovidesupporttothecommunityinachievingsustainabledevelopmentgoal.Today,bytakingadvantageofoursocial,environmentalandeconomicvaluesconstitutingthebasisofourmanagementpolicy,we,through57companiesandapproximately23thousandemployees,focusonproducingsolutionswhichwillgivebestresultsforTurkey’sfutureandqualityoflifeinTurkey.Inadditiontoouroutstandingachievementsinbusiness,wesignprojectsaimedtostrengthenourpositioninthefieldofsocialliabilityandcorporatecitizenship.

Underthenotionof“socialaccountability”,we,asZorluGroupperformallouractivitiesinthefieldsoftextile,electronics&whitegoods,informationtechnologies,energyandpropertyunderastrategyseekingenhancementofenvironmentalawarenessandconservationofnaturalresources.

Inthe21stcenturysubjecttorapidincreaseofenergyconsumption,we,withthesupportofZorluEnergyGroup,concentratedouractivitiesoninvestmentsindomesticrenewablesourcesbyadoptingstrategieswhichforeseemeasureduseofthesesources.Inthiscontext,wesignedCarbonEmissionSalesContractthatservesasanincentiveandaccreditationmechanismforthefirstphaseofwindpowerplantunderconstructionatBahçeDistrictofOsmaniye.Inthisway,weplantoproduceapproximately500MWhelectricityperyearwithzeroCO2emission.

Wereflectourphilosophyof“effectiveuseofenergyandnaturalresources”toourproductrangethroughVestelandobservethatallourproductionplantshavethesebasicfeatures.InordertocontributetoresolutionofGlobalWarmingProblem,weundertakeresearchesforminimizationofenergyandwaterconsumption.Asaresultofthesestudies,wesucceededtoachieveAandA4energyclasslevelsin90%ofourproductrange.

AsZorluProperty,itisourambitiontooffervarietyofservicestothecommunitythroughZorluCenterprojectwhichwepursuewithenthusiasm.WebelievethatZorluCenterwillbeapioneeramongotherinvestmentswithitsinnovativeenvironmentalapproach,andgreenareasandCultureCentertobegrantedtoIstanbulCity.Inthisproject,weplantousewastewater,so-calledgraywater,inirrigationofgreenareasfollowingthepurificationprocess.Thiswillsaveasubstantialamountofwater.TheCultureCentertobeconstructedonanareaof95,000sq.meters,withaseatingcapacityof3500,willmeetmajorityofurbanrequirementanditwillbefocalpointforculturalandartisticperformances.ThegreenRecreationArea,aslargeas80thousandsq.meters,willgiveanewperspectivetoIstanbulwithitsparksandcourts.

Likewiseinallouractivities,wecontinueourinvestmentsinthefieldoftextilewithanapproachseekingenvironmentalconsciousness.Today,Zorluteksisthefirstcompanymanufacturingorganichometextile.Ineverystageofourproduction,wepayutmostattentiontousematerialcompatiblewithhumanhealthandnatureandweworkontheprojectsreflectingenvironmentalconsciousness.

AsZorluGroup,weplanactivities,throughourFoundationcarryingthenameofourpromoterHacıMehmetZorluandunderthelightofourphilosophy“investingforthefuture”,towardstheyounggeneration,especiallyinthefieldsoftraining,cultureandsports,andlaunchandimplementprojectstocontributetoournation’ssocialandeconomicdevelopment.Oursupporttoeducationwillcontinuewithoutinterruptionbyawardedscholarshipstothestudentsandconstructingnewschools.

Wewillnevergiveupactingwithcorporatecitizenshipconsciousness,andtosupportlong-windedprojectswhichwillcontributetosocialdevelopment.

BestRegards,

AhmetZorlu

ZorluHoldingChairmanoftheBoardofDirectors


Thefinancialachievementsgainedthroughaccountable

corporatepracticesconstitutethebasisofour

sustainability.Inordertofulfillourobligationsagainst

ourplanetandcommunity,wemustassureaprofitable

businessinfuture,morethantoday.Wemoveinthe

directionofthevision,missionandstrategieswhichwe

promotedforthispurpose,andserveforthesustainable

successofourcompany.

Basedonthisunderstanding,ZorluGroupis;

•Opentoworld.Ithasthecapacityanddistinctivenessto

competeintheglobalmarketwiththebrandsreflectingits

vision,initiativespiritandcourage.

•Itisdynamic;itplaceshighvalueoninnovationsand

creativeness;investsinresearch-developmentprojects:

refusesoppositionagainsttransformation,bureaucracy

andsubmission.

•Itactswiththesenseofresponsibilityagainstthe

society;workstogeneratematerialandmoralvaluesfor

allsocialstakeholders;itissensitivetoenvironmental

variability.

•Inpathtofuture,itactswiththeconsciousnessgained

frompastexperiencesandcompetence;itisattentive

tofamilyandmoralvalues,andagainstfanaticismand

conservatism.

•Itbelievesthatprofitability,disciplineandplanningisthe

keytosuccess.

•Itaddsvaluetoitsemployees;createstrainingand

improvementopportunities;motivatespeopletomaximize

success.

•Itisaprestigious,well-establishedandpowerful,honest

andreliableinstitution.

•Itendeavorstobethebestineveryfield;focuseson

theresults;doesnotcompromiseonproductandservice

quality.

•Itownsaparticipatory,impartialanddemocratic

management,andaprogressiveorganizationwhich

believesinstitutionalization,andistolerantandopento

criticisms.

•Whilecreatingapeacefulworkingatmosphere,itgives

importancetogenerationofteamspirit,commonsynergy,

andbelievesineffectsofcommunication.

•Itisacustomer-orientedinstitutionwhichconsiders

marketdemandandexpectationsinproduction.

•Itattacheshighvalueonneatnessandorder;

encouragesfrugality,butopposesdissipation.

•Itattacheshighvaluetohuman,supportsparticipatory

efforts:refusesselfishnessandeagerness.

Sustainability Of Our Business


Allindividuals,institutionsandcorporationsaffectingtheactivitiesofZorluHolding,ordirectlyorindirectlyaffectedbyitsactivitiesaredeemedasourstakeholders.ThestakeholdersofourGroupofCompanies,atthesametime,aredefinedasthestakeholdersofZorluHolding.TheexistenceofmiscellaneousgroupofcompaniesoperatingindifferentsectorsleadsZorluHoldingtodealwithdifferentstakeholders.Theestablishmentofrelationswithourstakeholdersbasedonreciprocalinterests,confidenceandtransparencyconstitutestheessenceofZorluHolding’scorporatecommunicationstrategy.

Vestel Group

Vestelviewsthecorporatecommunicationasafundamentalelementservingforprotectionandprogressoftheinstitution.Asabasiccorporatecommunicationprinciple,Vestelispredicatedonconstancyofcommunicationandgivesequalimportancetoallitssocialstakeholders.Vestelfurnishesinformation,regularly,constantlyandaccurately,topublicopinion,investorsandmedia.Vestel,throughitsregularlyupdatedinvestorrelationsweb-site,providesallkindsofinformationtotheinvestorsrelatingtothegroup,includingVestelElectronicsandVestelWhiteGoods,thetwocompaniesofferedtopublic.

Stakeholders of Vestel Group•CurrentandpotentialemployeesofZorluGroup•Businessworld/sector•Publicinstitutionsandcorporations•Non-governmentalorganization•Media•Investors•Distributorsandsuppliers•Centralandregionalmanagers•Academiccommunitiesandacademicians•Businessandsolutionpartners•Bureaucracyandpoliticalauthority

Zorlu Energy Group

TheprincipalcomponentsofcorporatecommunicationstrategiesadoptedbyZorluEnergyGroupare;topromoteandenhancecorporatereputation,tointensifyandtosustaintheactivitieswhichwillshiftthecurrentpublicperceptiontowardsthetarget,toimprovecommunicationwithallstakeholders,toensureadoptionofcorporatevalues,togiveweighttocommunicationandparticipatoryefforts,toundertakesocialliabilityonspecificfieldsandtoconductconsistentandplannedcommunicationactivities.

ZorluEnergyGrouphasatrustworthy,powerfulandambitiousprofilebeforethepublicopinionbyvirtueofZorluname.TheGroup’smainchallengeistofurtherenhanceitsreputationbyreflectingthesocialdimensionsofenergyinitsoperationsandcommunication,andhighlightingitspositionasanauthorityandreliableinstitutioninnationalenergypolicies.

Thefinaltargetincommunicationactivitiesistofurtherenhancethecurrent(positive)publicperceptionandbythisway,topromoteZorluEnergyGroupasanOwnerwith;

•Specializationandexperience•Apioneerandanauthorityandreferencesourceinthesector•Highlypreferable•Transparent,appropriatelymanaged,withcorporateandsocialresponsibility•Sensitivetoenvironment•Trustworthybusinesspartnerintermsofglobaldimensions•Greatlyemphasizesbusinessandprivatelifeofitsemployees,andcontributestotheirimprovementandcareer.

Stakeholders of Zorlu Energy Group•Media•Non-governmentalorganizationsactiveinthefieldsofenergyandenvironment•Academiccommunitiesandacademicians•Suppliers•Competitors•Publicinstitutionsandcorporations•Localcommunitiesingeographicbusinessareas

Stakeholders of Textile Group•CurrentandpotentialemployeesofZorluGroup•Businessworld/sector•Publicinstitutionsandcorporations•Non-governmentalorganizations•Media•Distributorsandsuppliers•Centralandregionalmanagers•Academiccommunitiesandacademicians•Businessandsolutionpartners.

Our Stakeholders


BUSINESSES SHOULD SUPPORT AND RESPECT THE PROTECTION OF INTERNATIONALLY PROCLAIMED HUMAN RIGHTS; ANDMAKE SURE THAT THEY ARE NOT COMPLICIT IN HUMAN RIGHTS ABUSE.BUSINESSES SHOULD UPHOLD FREEDOM OF ASSOCIATION AND THE EFFECTIVE RECOGNITION OF THE RIGHT TO COLLECTIVE BARGAINING; THE ELIMINATION OF ALL FORMS OF FORCED AND COMPULSORY LABOR; THE EFFECTIVE ABOLITION OF CHILD LABOR; THE ELIMINATION OF DISCRIMINATION IN RESPECT OF EMPLOYMENT AND OCCUPATION.

Human Rights and Labor


LABOR

Human Resources Policy of Zorlu HoldingTheselectionofhumanresourcesrequiredbyourCompanyisconductedbyconsideringequalopportunityprincipleamongtheindividualswhohavehighimprovementpotential,knowledgeandskillsrequiredforthejob,andwhoarecapableofadoptingandsustainingcorporateandsocialvalues.Basedonthisunderstanding,thebasicelementsconstitutingourHumanResourcesPolicycanbelistedasfollows:•Humanresourceisabasicprinciplewhichraisescompetitionsuperiority.•EveryemployeeisexpectedtopossessthecommonvaluesofourGroup.•Weaimtopromoteourinstitutiontothelevelofchieflypreferredworkplacebytheemployees.•Withintheframeoftherulerelating“FundamentalityofCorporate”,weestablishbalancebetweenemployeeexpectationsandcorporateexpectations.•Weobservefairandequalopportunityprinciplewhilerecruitingouremployees.•Wemeasuresuccessandhighperformanceandmotivateouremployees.•Weexpecteveryemployeetobethemasterofhis/herjob,andeachexecutivetobethemasterofworkplace.•Weprimarilyconsiderthealternativesofferedbyin-houseHumanResourceswhilemeetingtherequirementsoftheGroup.•WepursueinnovationsinHumanResourcesandundertakeassessmentandimplementationofthesameaccordingtotheGrouprequirements.•Wediligentlyconsiderinter-sectorandinter-companydifferences.•Wesupportlocalemploymentinthegeographywherewearelocatedandconductouroperations.

InadditiontothecomponentsformingourHumanResourcespolicy,thereareotherbasicelementswhichweconstantlyobserveandgivegreatimportancetorelevantimplementationswhilepracticingourpolicies.Theseelementscanbelistedasfollows:

• Equal Opportunity- HumanResourcesprocessmaynotincludeaprejudgmentconstitutingdiscrimination.Thisappliesfromtheverybeginningoftheemployment,inthecourseofcareer,andcontinuesuntiltheterminationoftheemploymentcontract.Theapplicableprocessesareassumedasapolicypreventingdiscriminationandprejudgmentthatmaybefacedduringemployment.Tillnow,noactionimplyingdiscriminationisobservedinZorluGroupofCompanies.

• Social Diversity- HumanResourcespolicyinZorluisbasedontherule“equalopportunity”whichdeniesrace,language,religion,sex,agediscrimination.InrecruitmentsforZorluGroup,discriminationisstrictlydisallowed.Ifweneedtogiveminorexamples;i.e.allemploymentannouncementsaddresstoman/womancandidates,excludingjobrequirements.We,ingeneral,refrainfrombringingagelimitinouremploymentannouncementsunlessthepositiontargetscertainagegroup.

• Positive Discrimination- ThemostimportantfieldofapplicationofourGroupisthejobopportunityofferedtothedisabledandhandicappedpersons.

ThereisnolawsuitfiledagainstZorluHoldingonthegroundofnon-performanceofobligationsinthefieldofHumanResources.

Recruitment Process-Generallytherecruitmentprocedureoperatesasfollows:• Tests:- GeneralQualificationTests-ForeignLanguageExams--HoganPersonalityTest• Interview:- ItisconductedbyHRandtheexecutiveofrelevantdepartment.Accordingtotheposition,2or3interviewsmayberequired.Competency-basedinterviewisalsoundertakenbytheexecutives.• Offer: Thecandidateswhoaresuccessfulinthetestsandinterviewspasstoofferstage.Theformalitiesandprocedurerelatingtoemploymentcontractarestartedwiththecandidateacceptingtheoffer.


Waging and Benefits-ZorluHoldingimplementsperformance-basedwagingsystemandHayGradesystem.Inthissystem,awagerangeisspecifiedforeachworklevel.Itisabasicprincipletopayemployeeswithinwagerangeidentifiedforhis/herposition.Thesalariesexceedingthewagerangeareadjustedbyscalingtheemployee’sperformance.Salaryincreasesarerealizedbyconsideringcurrentinflationandworkperformance.

Withinthescopeoffringebenefits;freelunch,transportationandprivatehealthinsurance(whitecolor)isofferedtotheemployees.AsportshallisavailableatZorluHeadOfficeforsportingactivitiesoftheemployeesoutsideworkhours.

Ifdesired,theemployeesmayalsobenefitfromindividualinsurancepolicyprovidingspecialadvantagestoZorluGrouppersonnel.

Performance Rating-IndividualperformanceratinginZorluHoldingisrealized1timeinayear.Intheface-to-facemeetingheldwiththeattendanceoftheemployeeandhis/hersuperior,theefforts,performanceresultsrecordedwithinthelast1yearperiodareassessedtodeterminetheachievedprogress.Inaddition,thetraining-improvementneedsoftheemployeearenotedandactionplanismadebyexchangingviewswithHumanResourcesDepartment.Performanceformsarecompletedontheintranet.Theseformsarearchivedinsafetybyusingpersonalcodesofeachemployee.•IntermsofHumanResources,thepurposeofperformanceratingsystemisthedeterminationandsharingofworkstrategyandtargets•Assessment,communicationandoperationoffeedbacksystem•Contributiontoemployeemotivation.•OrientationofBasicFunctionsofHumanResources(salaryincrease,promotion,positionupgrading,careerplanning,training-development,transfer,rotation…….)•PerformanceRatingcoversassessmentofindividualcredentialsandaccumulatedknowledge•Effortlevels

•Performanceresultsbasedontheseeffortsandofferedadvantages•Compatibilityofeffortsandbehaviorswithcorporateculture.

Career Planning- Inordertopromotemulti-functionworkingemployees/executives,rotationsystemisadopted,generallywithinthesamefieldofspecialization,byprovidingtraining/orientationondifferentdimensionsandspecificationsofjob.Themainprincipleinrotationdecisionsistheintegrationofemployeecareertarget/expectationsintocorporateperformancetarget/requirements.

ThepersonalandprofessionalimprovementofanindividualisofgreatsignificancetoZorluHolding.Asanation,weconsiderthenecessityofspecializationwithinthescopeofoursocialresponsibility.Inthiscontext,ZorluHolding,incollaborationwithuniversities,planstoeffectuateaprogramintheyear2009foreducationof“EnergySpecialists”.Itisourambitiontofurtherdevelopcareerplanning,wagingandrewardingsystemssupportedbyPerformancemanagementsystemin2009,andtoenableadoptionofenhancedmanagementsystembyGroupemployeestoachievethespecifiedtargets.

Participation of Employees in Management- Zorlutekshasbuiltaproposalssystemtocontributetoparticipationandimprovementofemployees,jobmotivationandtoincreaseattentiveness,topromotequalityandquality–orientedprocesses,tolowercosts,toimprovebusinessrelations,todevelopproductsandtoraisethelevelofemployeesatisfaction.Allemployeeshaveaccesstothissystem.TheproposalsareevaluatedbytheAssessmentBoardandprojectstudyisundertakenonthebasisofresults.Theproposalsarecategorizedasmeasurableandnon-measurableintermsofeconomicreturn.Thosewitheconomicreturnareawardeduptoacertainpercentageofannualreturn,whereastheothers,withnon-measurableeconomicreturn,areassessedwithinpointscoringsystem.


OneofthepracticesexercisedbyZorlutekstoincreaseemployeeparticipationandmotivationisAdviceandComplaintsSystem.OuremployeesareencouragedtoparticipateinthemanagementbyforwardingtheiradvicesandcomplaintsthroughAdviceandComplaintsSystem.Alladvicesandcomplaintsarerespondeduponassessment.

Theinnovativethinkingsystem,oneofthesignificantcomponentsofVestel’soutstandingachievement,isanaturalpartofemployeework-life.Vestelwelcomeseveryemployeewhojudgeshis/herproposalascontributiontocorporatedevelopment.Vestel,throughitsProposalAssessmentSystem,accessiblebyallemployees,givesrewardsforallviewswhichbringcostadvantageinthecourseofbusiness(production,worksafetyetc.)inproportionoftheircontributiontothecompany.Patent(Incentive)SystemisprovidedforrewardingofeverydesignengineerwholaunchesanewpatentregularlyanddecisivelytobeincludedintoVestelpatentpool.

Ontheotherhand,arrangementsaremaderegularlytobringtopmanagementandVestelemployeestogetherindialoguemeetings.Bythisway,itisaimedtostrengthenthecommunicationlinkamongtheemployeesandalso,betweentheemployeesandtopmanagement.

Vestel Groupattachesgreatimportancetocompany-orientedtrainingactivitiesaimingtodevelopemployeeknowledgeandskillsthroughprofessionaltraining:inthiscontext,besidesthetrainingonthespot,itconductsremoteandinteractivetrainingactivitiesbytakingadvantageofavailabletechnicalfacilities.

DuringthetrainingperiodbetweenFebruary-December2008,VestelGrouphasprovidedtrainingaverage16hoursperemployee.Theapplicationprocessinvolvingthosewhoarewillingtoparticipateinthetrainingsduringtheyearbycompletingtheapplicationformpublishedtogetherwithtrainingcatalogueisanimportantfactorin

designationoftrainings.Uptonow,1,384employeeshavebenefitedfromthetrainingsrealizedinthefieldsofTechnical-Corporate/PersonalDevelopmentandManagerialDevelopment.Thistrainingprogramwillalsosurvivein2009.Tothisend,weareengagedwithmorethan120trainingcompaniescarryingoutjointtrainingactivities.

Allyearlong,KorteksprovidesInter-ServiceandForeignSourceTrainingstoWhiteandBlueColoremployeesundertheconceptof“ContinuousLearningOrganization”sothattheemployeescanperformtheirdutiesinthemosteffectiveandprofitablemanner,andthelevelofprofessionalknowledgeisupgraded.Inadditiontothesesefforts,thenewemployeesareadmittedtoorientationprogram.WewillcontinuetoparticipateindomesticandforeignFairs,ConventionsandSeminarsinordertohelptheexecutivestafftobroadentheirvision,andtoenterintonewmarketsandtoattractnewcustomers.In2008,Kortekshasprovidedtrainingaverage42.5hoursperemployee.

InZorlu Energy Group,asofJanuary2009,averagetraininghoursperemployeeforthefistsixmonthsoftheyearisreportedas13.06hrs.

Duringtheyear2008,Zorluteksoffered17.3hourtrainingperemployeeforbluecolorsand46.2hourtrainingperemployeeforwhitecolors.Theemployeefamiliesarealsorenderedtrainingservicesonthesubjectofnourishmenthabitsandstrugglingwithdrugs.

Employee-oriented Researches-InZorluGroupofcompanies,weapply“Expectation-FindingQuestionnaire”.Theobjectofthisquestionnaireistolearnthejobexpectationsoftheemployeesandfulfillmentrateoftheseexpectations.Thisenablesustoundertakeduediligencestudyandtousetheresultsindesignationofhumanresourcespolicies.Sinceouraimistodetecttheproblemsandtoproducesolutionstotheseproblems,wehavedesignedthequestionnairewitharealisticapproach,


insuchawayalsotoreflectthenegativeresults.Thisquestionnaireisappliedtoouremployeesineverytwoyears.

Eachyear,ZorluteksimplementsEmployeeSatisfactionQuestionnaireallovertheorganization.ThequestionsinthequestionnairearepreparedincompliancewithEFQMExcellenceModel.Thequestionnaireresultsenableustodeterminetheimprovement-seekingfields.ThedetectedgapsareevaluatedjointlywithTopManagementandallDepartmentHeadsandnecessaryactionsaretakenforfullimplementation.

Working Time-OurCompanyactsinfullcompliancewiththenationallawsandregulationsonthesubjectofworkinghours,overtimeworkandweeklyholidayperiod.Overtimeworkshouldbaseontherule“voluntaryperformance”.

Child Labor-OurCompaniesneitheremploynorencourageemploymentofchildlaborandunderageworkers.TherearenoemployeesinourCompanyworkingundertheageof18.

Forced Labor-Ouremployeesbelieveinvoluntaryworktocontributetoachievementofcommontargets;forcedandcompulsorylaborisnotencouraged.Therefore,werefrainfromincludingspecialtermsintheemploymentcontractswhichwillrestrictemployee’srighttoterminateemploymentcontractorimpedethelawfulexercisethereof..Theemployeesarefreetoquittheirjobsattheendofthelegallyprescribedperiod,asavestedrightgrantedtotheowner,byreceivingallbenefitsarisingoutofapplicablelaw.

Employee’s Right To Form Unions/Collective Bargaining (Labor) Agreements- “AccordingtotheConstitutionofTurkishRepublic,itisconstitutionalrightofanemployeetobecomeamember(positiveliberty)ornottobecomeamember(negativeliberty)ofaunion.”ZorluGroupofcompanieshasalwayssupportedthis

constitutionalright.OurbluecoloremployeesengagedintextilebrancharethemembersofTeksifUnionlinkedtoTurk-Is.

HUMAN RESOURCES IN ZORLU HOLDING

ZorluGroupencouragesprotectionofhumanrightsandrelevantinternationalrules,andrespectstheminallaspects.Tothisend:•Wegivecredittoindividualdiversitiessuchasrace,gender,religion,socialclass,nation,age,physicaldisabilityanddefectiveness,anddisallowdiscriminativebehaviors.•Wepayrespecttoindividualdignity,privacyandconstitutionalrightoffreedom.•Groupemployeesaretheobserverofactionspreventinginfringementofhumanrights.•Theowneroffers,regardlessofgender,belief…diversities,equalopportunitytoallemployeesaspartofitscommitmentsonthesubjectsofindividualdevelopmentandcareer.•Werespectcustoms,cultureandhistoryintheCompany’soperationsgeography.•Themechanismrelatingtoworkdisciplineandworkplacerulesoperatesalsoincaseofhumanrightsviolations.

Human Health and Safety in Zorlu HoldingTheperformanceshownbythecompaniesallovertheworldonthesubjectofworksafetyandsecurityisconstruedasthereflectionoftherespectdedicatedtohumanrights.TheworksafetyandsecuritypoliciespromotedbyZorluGroupareagoodindicationoftheimportancegiventoemployeehealthandsafety.Withinthescopeofthesepolicies,weundertakecontinuousprocessesandstudiestocreateasafeandsecureworkatmosphereandtoraiseawarenessoftheemployeesabouttheworkplacedangersandassessment,controlandeliminationofrisks.

Inthiscontext,OccupationalHealthandSafety(OHS)BoardhasbeenestablishedpursuanttoOHSAS18001


StandardandtheregulationonOccupationalHealthandSafetyDirectives.OHSBoardconvenesonceinamonthtodiscussthemeasuresrequiredtobetakentopromotethesafety,securityoftheworkplace,tostrengthenenvironmentalconformity,includingtheproblemsandinconsistenciesonthesubjectofoccupationalsafetyandenvironment,occupationalaccidentsanddisease,emergencysituations,environmentaltrainings,risks,impactofvariouschangesonenvironmentandoccupationalsafety,promotionandrevisionofenvironmentandoccupationalsafetypoliciesandtargets,documentsrelatingtoenvironmentandoccupationalsafetymanagementsystem,environmentandoccupationalsafetysurveysconductedbyforeigninstitutionsandfollow-upofdecisionstakeninthepreviousmeeting.

Byconsideringtheworkloadofthepersonnelperformingsubstantialpartoftheirdutiesbyuseofcomputers,ZorluHoldingannouncesvoluntaryeyetrackingteststhroughe-mail.Theseeyetrackingtestsarerealizedonannualbasisinorderenabletheemployeestoworkmoreefficientlyandcomfortably.Also,employeesarecontinuouslyfurnishedinformationaboutepidemicdisease.Inthiscontext,fluvaccinationisinjectedtotheemployeeswhowanttogetit.KitchenpersonnelaresubjecttoportertrackingtestsonquarterlybasisandbluecoloremployeesareurgedtotakechestX-rays.

Anotherstrikingprojectamongtheactivitiescarriedoutforpromotionofemployeehealthandsafetyis“PandemicPlan”tobecompletedin2009.AllstudieswithinthescopeofthisprojectaimedtotakethediseaseundercontrolincaseofoutbreakareundertakenaccordingtoWHO(WorldHealthOrganization)Standards.ThisvoluntaryprojectisalsosupportedbyIstanbulChamberofIndustry.Theactivitiessuchasformationofworkplacecommittees,provisionofgeneralinformationforemployees,preparationoftelephonedirectoriesandtransportationplansarewithinthescopeofthis

project.Thesustainabilityandupdatingofpandemicplanconstitutesourtarget.

OccupationalhealthandsafetypoliciesareduediligentlyimplementedbyallGroupcompanies.

TheactivitiescarriedoutwithinthebodyofZorluteks:•Operationofenvironmentandoccupationalsafetymanagementsystemiscontrolledatleastonceinayearbyconductinginhouseinspections.Additionally,sitesurveysareorganizedinevery4monthsonthesubjectofenvironmentandoccupationalsafety.Thedeficienciesdeterminedattheendoftheinspectionsandsurveysarerecovered(ifany).•ManagementReviewMeetingisheldatleastonceinayear,underthechairmanshipofGeneralManagerandwiththeparticipationofManagementRepresentativeandDepartmentExecutivestocheckcomplianceandeffectivenessofEnvironmentandOHSsystem.•EnvironmentandOHSsystemsareevaluatedonthebasisofPerformanceReportspreparedbytheManagementRepresentativeandupondiscussionoftheproblems,ifany,andassessmentofthepossiblecauses,reasonableimprovementstepsaretakenforeffectiveimplementationofthesesystems.

Allemployeesaresuppliedprotectiveequipmentsuchaseyeglasses,gloves,earlapetc.toagainstthepotentialoccupationalrisks.Theemployeesareprovidedtrainingonproperuseofprotectiveequipmentandnecessitytousesuchequipment.

FirewarningsystemwithsmokedetectorisinstalledintheFactory.Also,evacuationplansarepreparedforemergencysituationsspecifyingthegatheringareas.Theevacuationplansarepostedonthebillboardsofeachenterprise.Also,duringperiodicworksitetrainings,theemployeesareinformedabouttheescapechannelsandevacuationgatheringareas.Inordertochecktheadequacyofmeasuresandorganization,evacuationdrills


areholdonceinayearandanemergencyscenarioisappliedwiththeparticipationoffire,rescue,securityandfirstaidteams.

Thefactoryisfullyequippedwithfireextinguishingapparatusagainstallkindsoffiresandperiodicalmaintenanceisperformedtoensureoperationoftheequipmentwithoutfailureatalltimes.Also,fireextinguishingteamsareformedforeachfactorybelongingtotheenterprise.

PursuanttoOccupationalHealthandSafetyregulation,theOccupationalHealthandSafetyBoardestablishedwithinthebodyofKorteksmeetsregularly,atleastonceinamonth,anduponcallunderrequirement.TheBoardperformsstudiesandtakesdecisionstopreventoccupationalaccidentsbyreviewingpreventivemeasures,causesofoccupationalaccidentsandmeanstoavoidre-occurrenceofsuchundesirableincidents.ThedecisionstakenbytheBoardaresubmittedtotheapprovaloftheOwnerandputintoforceaccordingtoCorrectiveandPreventiveActionProcedure.

TheemployeessubmittheirproposalsrelatingtopromotionofworkingconditionsandoccupationalsafetytoHumanResourcesDepartment.TheproposalspooledintheHumanResourcesDepartmentareevaluatedbytheProposalEvaluationBoardandtheperson,whoseproposalisapprovedanddeemedapplicableattheendoftrials,receivesawardtotheextentofadvantageprovidedbytheProposaltotheCompany.

Allyearlong,workplacemedicalserviceregularlyprovidestrainingstotheemployeesonthesubjectofindividualhealth.

AsZorluteksandKorteksareparticipantsofOHSAS18001ManagementSystem,eachyear,theyundergoinspectionbytheindependentauditorsonthesubjectofOccupationalHealthandSafetyPractices.Inaddition,pursuanttoOHSAS18001ManagementSystem,theyholdworksiteinspections3timesinayearandenvironmentandriskassessmentonceinayear.Theimproperpracticesdeterminedattheendoftheseinspectionsarecorrectedinthedirectionofactionplans.

TheSocialConformityInspectionsrequestedbyZorluteksandKortekscustomersareperformedonannualbasisbyindependentauditfirms.

VestelregardstheOccupationalHealthandSafetyasprimaryissue.OccupationalHealthandSafetyBoardsundertakeinspection,supervisionandwarningdutieswithinthestipulatedorder,byconsideringtheapplicableprinciples.TheBoardmembersareinformedperiodicallyandreceivecontinuoustrainingfromVestelSafetyManagementandperformancepartnersonthefollowingsubject;

a)DutiesandpowersoftheBoard,b)InternationallawsandstandardsonthesubjectofOccupationalHealthandSafety,c)Causesoffrequentlyencounteredoccupationalaccidentsanddangerousoccurrences,d)BasicRulesofIndustrialHygiene,e)Effectivecommunicationtechniques,f)Emergencymeasures,g)Occupationaldisease,h)Specialworkplacerisks.i)Since2005,Vestelholds,inadditiontoISO9001and14001,OHSAS18001OccupationalHealthandSafetyCertificateandbelievesinessentialityoftotalqualityandpositiveapproachtohealthandsafetyforeffectiveandprofitablemanagement.Therefore,weplacegreatimportancetodeterminationandmanagementofpotentialaffectsofworkplacerisksonemployees,sub-contractors,visitorsandotherpersonnelwithintheorganization.Vestelaimstobecomeapilotwithitsoccupationalhealthandsafetysystemcompatiblewithworldstandards,byeliminatingorminimizingoccupationsaccidentsandfirerisks,creatingasafeworkplaceinallVestelplantsandraisingawarenessofallemployeesaboutoccupationalhealthandsafety.

Forthispurpose,Vestel;•Fulfillsitslegalobligations,meetsadministrativeconditionsandrequirementsofinstitutionswithwhichcompanyhasmembership,achievescontinuousprogressbyreflectinginternationalstandards,advancetechnologiesandemployeeproposalstoitsimplementations.


•Preparesandimplementsplansforpreventionofoccupationalaccidentsandoccupationaldiseasebyundertakingoccupationalhealthandsafetyriskanalysis.•Ensurespracticeoflaborhealthandsafetyconsciousnessbyemployeesineverylevel,andprovidescontinuoustrainingtotheemployeessothattheyacquirecorrectbehaviorandhabitsonthesubjectofpotentialhealthandsafetyrisks.•Adoptsaworkprincipleseekingeliminationorloweringthelevelofunsafeconditionsandactionsforpreventionorminimizationofoccupationalaccidents,frequentreviewofworkingconditionsandenforcementofmeasuresforrecoveryofdeficiencies,provisionofsourceforsuchmeasures,reviewofpoliciesaccordingtodiversifiedconditions.•Ensuresthattheemployeeshouldalsoconsiderstherule“jobeligibility”forpreventionorminimizationofaccidents.

Basedonthisunderstanding,thecompaniescontinuouslyholdlaborhealthandsafety,firesafetyandsecuritycoordinationmeetings.TrainingCommitteeandAnalysisCommitteeregularlyperformsstudiestoupgradeprofitabilityandqualityoftheservices,topromotesafetycultureofemployees,toprovideconstanttrainingtoallpersonnel,todesignateinter/intra-companytrainingrequirementswithinscopeofoperationsandalsoonotherfields,toimplementtrainingplansandtoevaluatetheresultsoftrainingactivities.

Vestel,incompliancewithproactivesafetyconcept,protectsallin-doorareaswithfiredetectionandwarningsystem,andcontrolsthesecuritysystemfromonecenterbyusingCCTVandcardentrysystems.UndertheunderstandingofsocialconsciousnessandSocialResponsibility,Vestelappliesaneffectivelife-safetyandpropertyprotectionprogramforitsemployees,visitorsandplantsbyprovidingfireextinguishingapparatus,internalfireclosets,hydrants,emergencyexitsandemergencylightingsignals,fireextinguishers,ambulances,trafficsafetyvehicles,andmobilesecuritypatrolsofficerswithinthescopeofEmergencyInterventionPlans,andusesitsfacilitiesandexperiencealsoforothercompaniesoperatinginManisaOrganizedIndustrialZoneandin

thiswaycontributestosafetyofregionalindustryinemergencysituations.

AsaresultofVestel’sproactivesafetyapproach,nopauseinproduction,financiallossandlifedamage,partiallyorwholly,wasencounteredbetweentheyears2007-2009causedbyfireandotheremergencies.

ZorluEnergyGroup-ThelaborhealthandsafetyisoneofthefundamentallaborrightswhichareobservedinpriorityinoperationsofZorluEnergyGroup.ZorluEnergyhasaccomplished,inalloperationalareas,bothenvironmentassessment,andhazardidentificationandriskassessmentplansonthesubjectofenvironmentandoccupationalsafety.Byconsideringthetargetssettingimpositionofallkindsofmeasurestoeliminateaccidents,damagetohumanhealthandplants,thecomponentsofrelevantpoliciesaredesignatedasfollows;•Topredicthazardsandtotakenecessaryprecautionsagainstpotentialloss,accidentordamageriskwithinthescopeofhealthandsafetyprinciples.•Tominimizethenegativeaffectsofactivitiesonhumanhealth,toraiseawarenessofemployees,sub-contractorsandcontractorsonthesubjectofoccupationalhealthandsafety,torendertrainingassupportiveaction,toco-operatewithallinstitutionsprotectingpublicinterest.•Topreventre-occurrenceofincidentsandaccidentsandtosubmitrealisticreportsontheincidentsandaccidentsinordertoimproveperformanceandtoensurethattheemployeesbenefitfromthelessonsderivedfromsuchoccurrence.•Torewardthosewhocontributetoimprovementofhealthandsafetypolicies.•Wheredeemednecessary,torealizetheEmergencyManagementPlantwithhighestperformance.•Tocomplywiththelawsandregulationsapplicableinourcountryinconnectionwiththesepolicies.•Tovestresponsibilityinallemployeesonthesubjectofmaintenanceofessentialhealthandsafetyfeaturesinthepowerplantsandotherbuildings,andincreaseinperformance.In2008,ZorluEnergymovedonestepforwardbymakinginvestmentsinallpowerplantstargetingsystemsafetyenhancement,asreflectionofitspersistenceintransformingpoliciesintopractice.


BUSINESSES ARE ASKED TO SUPPORT A PRECAUTIONARY APPROACH TO ENVIRONMENTAL CHALLENGES;UNDERTAKE INITIATIVES TO PROMOTE GREATER ENVIRONMENTAL RESPONSIBILITY; ANDENCOURAGE THE DEVELOPMENT AND DIFFUSION OF ENVIRONMENTALLY FRIENDLY TECHNOLOGIES.

Environment


Globalwarmingandclimatechangesarebiggestthreattoourworld.Ourwaterisalmosttotallyconsumed.Ourenergyisrapidlydiminishing;mostpredictionsarethatwidelyusedfossilresourceswillsoondisappearforever.Glaciersaremelting,airispolluted,agreatnumberofplantandanimalspeciesarethreatenedwithextinction.Asaconsequenceofthisdramaticchange,humansareonthebrinkofoneofthesedangerouspassages.

Whilefocusingoureffortsonoursurvival,wemustalsorespecttoworld’ssurvival.Theonlysolutionforthisistochooseagreenlife.Today,institutionsregardenvironmentalsensitivitystudiesasoneofthefundamentalsofsuccesscriteria.Consciousconsumerspunishtheinstitutionsfailingtomakeasteptowardsgreenlifeandtocontributetoenvironmentalprotection.Theconsumerswhoprefertobuytheproductsofenvironmentallysensitiveandgreen-lifeorientedcompaniescausedeclineinsalesofindustriesthatpolluteorextractnaturalresources.Theinstitutionsinvestinginenvironmenteconomicallybecomemorelucrativeandtheirprofitrisesconsiderably.Besideinclinationinsalebyvirtueofpositiveimagecreatedbythecompaniesinviewofconsumers,amarkedincreaseisobservedinthevalueoftheirsharestransactedinthestockexchange.

ZorluGroupvaluestheenvironmentasaparadisetobetransferredtofuturegenerations.Therefore,ZorluGroupcarriesoutitsactivitieswithinenvironmentalmanagementconceptwhichfocusesonraiseofenvironmentalawarenessandprotectionofenvironmentandnaturalresourcestodevelopamorelivableworld.

Tothisend,ZorluGrouprealizesthefollowingfundamentalsinallitsactivities;•Compliancewithnationalaninternationallawsandregulationsrelatedwithenvironment.•Selectionofequipment,technologyandprocesswhichwillminimizenegativeenvironmentalimpacts.•Utilizationofenergyandnaturalresourcesinthemosteffectivemanner.

•Developmentofsystemswhichwillpreventpollutionatitssource,beforeitactuallyhappens.•Controlanddisposalofwasteswithoutcausingenvironmentaldamage.•Trainingofemployeesandsub-contractortoraiseenvironmentalawareness.•Realizationofimpactanalysisinnewinvestmentsbyconsideringenvironmentalfactors.

OurGrouptargetsgreenofficesinordertomitigatetheloadimposedbyofficesupontheworld.Byintegratingoursensitivenessonclimatechangeintotocorporateculture,weaimedtominimizepaperandwaterconsumption,andtomakesavingespeciallyinthefieldofenergy.TherecyclingprocessesarewidelyimplementedinourGroup.ThereisnolawsuitfiledagainstZorluGrouponthegroundofnon–performanceofenvironmentalobligations.

Green information technologies- Environmentalpollutioncausedbyinformationtechnologiesthatproduce2%ofcarbon-dioxideemissionintheworldisequaltotheenvironmentalpollutioncausedbyallflyingaircrafts.Therefore,thegreen-lifeorientedstudiesundertakenininformationtechnologiessectorplayanimportantroleinourachievements.

ZorluGroupInformationTechnologiesDirectorate,asanenvironmentallyconsciousmanagement,fullyobservestheenvironmentalimpactsinitsactivities.Thepracticesinthefieldofgreen-lifealsocovertheeffortstoavoididlecapacityutilizationofresources,andtoprovideeffectiveuseofequipment,includingelongationoftheirservicelifesothattheycanbere-used.Inthenewpurchases,thenewgenerationprefersenvironmentallyfriendlytechnologies.WebelievethatthevisualizationprocessinitiallyusedbyZorluPropertyandplannedtobeshiftedtoZorluGroup,willyieldconsiderableamountofenergy-saving.

Byexpandingteleconferencepractices,asanalternativetobusinesstrips,itisexpectedtominimizeCO2emissionproducedduringtravels.Thewastesbelongingtoinformationsystemarecollectedand

disposedbythelicensedcompanies.


GREEN TECHNOLOGY

Environment and global warming becomes increasingly more important issue in the world agenda. Almost every country and sector is engaged in lens review of the measures to be taken on this subject.

Vestel’sprimaryobjectiveistomaintainhealthandsafetyofemployees,customersandsurroundingcommunitiesbenefitingfromitsactivities,productsandservices,andtoprotectenvironmentandnaturallife.

Vestel,withtheconsciousnessofresponsibilitiesvestedinthecompanyasoneoftheworld’sleadingenterprisesoperatinginconsumerelectronicsandwhitegoodssectors,intensifyitseffortstobecomeastrongplayerinworldleaguewithallitsemployees,customers,distributorsandsuppliesbydesignatinganddocumentingquality,environmentandoccupationalsafetystandardsapplicabletoallitsoperations,productlineandproducts.Withthisaiminmind,Vestel,byformingacommonqualitylanguageandenvironmentconsciousness,andsettingupworkprinciples,Grouppoliciesandamanagementsystemwhichwillsupportdevelopmentinthedirectionofcorporaterulesandtargets,aspartofcorporatesustainabilityendeavors,hasachievedtoaprestigiouslevel.Inthiscontext,potentialenvironmentriskidentificationisspecifiedforeachdivisionwithinthebodyoftheGroup,andtheactivitiesarecarriedoutbyconsideringtheserisks.

Vesteltargets,byvirtueofenvironmentalpolicy,anapproachsafeguardingandpromotinglifequalityofemployeesandcustomers.Underthelightofapplicableenvironmentalpolicy,Vestelcommits;•Considerationofenvironmentfactorinassessmentofnewproductionprojectsandoperations,

•Minimizationofutilizationofhazardoussubstancesinproductdesignandproductionstagesandresearchoflesspollutantsubstances,•Initiationofactivitiestominimize,re-use,andrecyclingofwastes,•Encouragementofeffortstoincreaseefficiencyandutilizationofnewtechnologies,includingwater-savingandnaturalresourceconservation,•Wheredeemedappropriate,utilizationofrecycledpackagingmaterial,•Developmentofactivitiestoraiseenvironmentalawareness,•Compliancewiththeapplicablelawsandregulationsandadministrativeadaptationsrelatingtoenvironment.

Vestel White GoodsInbrief,VestelWhiteGoodsQualitySystemisbasedon;performance,safety,deservingofcustomer’sconfidence,customersatisfactionandcustomerloyalty.

VestelWhiteGoodsobtained1994versionofISO9001Certificatein2002,2000versionofISO9001Certificatein2003.VestelWhiteGoodshasfinalizedthestudiesrelatingto18001OccupationalHealthandSafetyManagementSystemCertificateandentitledtoreceiveCertificatefromTSIin2008.

ThestudiesonISO14001Certificateshallbecompletedin2009.VestelWhiteGoods,asanaccountablecorporatecitizen,fulfillsallitsobligationsonthesubjectofminimizationofenvironmentalimpactsresultingfromcompany’soperations,presentationofnature-compatibleproductstomarket.


Vestel ElectronicsVestelElectronics,asaholderofTS-ENISO9001Standardcertificatesince1993,targetstohigherthecustomersatisfactiontotoplevelbyimplementingamanagementsystemdiscipliningallprocessesandsub–processeswhichbeginwithcustomerandmarketresearchandrangeuptodesign,productionandafter-saleservice.

VestelElectronicsholdsISO14001EnvironmentManagementCertificatesince1998.Thecompanyrecentlyhasundergoneaninspectiononthesubjectofenvironmentimpactofitsactivitiesin2005andattheendofthisinspectionnoviolationbythecompanywithregardtoenvironmentalprotectionwasreported.

VestelElectronicsreceivedthe18001OccupationalHealthandSafetyManagementSystemCertificatein2008.

ENVIRONMENT –ORIENTED ACTIVITIES OF VESTEL FAMILY

Someofthechemicalsusedinmanufacturingofelectronicproductsmayhavenegativeimpactonenvironmentandhumanhealthduringutilization.Whentheseproductsaredischargedinnatureattheendofservicelife,theydirectlyreachtohumanbeingsthroughsoil,waterandplants,eventuallycreatingvarietyofrisks.PursuanttoEuropeanUnionDirectivespublishedundertheheading“20/20/20”againstglobalwarming,especiallytelevisionandwhitegoodsarelistedamong14productswhichrequireenvironmentalcompatibility.

Vestel,whichrealizesmajorityofitssalestoEUcountries,closelyfollowsthelawsandregulationsofEUmembercountriesandlegalrequirementsofEUmarkets,asanobligationtobefulfilledalsoinourcompany.Inthisway,Vestelcanconductitsactivitiesinthedirectionofenvironmentalcriteriaandbecomesreadybeforehandtoanypotentialchange.

Vestel,asacompanyapplyinglead-freeweldingforthefirsttimeinTurkeyinmanufacturingofproducts,andprovidingcertificationfortheproductsmanufacturinginconformitywithRoHSHazardousChemicalsDirective,playsapioneeringroleinimplementationofenvironmentandhealthregulations.ThepositiveresultsobtainedfromregularcustomerinspectionsareamarkedindicationofVestel’sachievementonthesubjectofenvironment.ENVIRONMENTALLY FRIENDLY IMPLEMENTATIONS IN THE FACTORIES AND OFFICES

Vestel,besidesreflectingthephilosophy“efficientuseofenergy”initsproducts,atthesametime,encouragesitsproductionplantstoadoptthefundamentalsofenvironmentalconsciousnessinalltheirprocesses.

Inthiscontext,inadditiontotheactivitiescarriedoutonthesubjectsofcompressedair,coolingwatersupplyandheating-coolingsystemstopromoteefficientuseofenergy,seriesofstudiesareundertakenforcostreductioninelectricityconsumption.Asthefactoriesareoperatingwithadvancetechnologies,theelectricityconsumptionandexploitationofnaturalresourcesareconsiderablylessthanthoseinthefactoriesusingoldtechnologies.Moreover,energyefficiencyisalsoincludedinthetrainingprograms.Byvirtueofthesemeasures,weareabletotakeappropriateactionagainsttheglobalwarmingandtoofferourproductstothecustomerswithmorefeasibleandaffordablepricesbyreducingtheproductioncost.

Achievements in compressed air•Inaircompressorsweshiftedtofrequencycontrolsystem.Byusingcompressorswithfrequentcontrol,itispossibletocontroltheenginespeedaccordingtoconsumptionquantity.Inthisway,overrunoftheengineisprevented,andconsequentlyelectricity

consumptionisreduced.


•Weestablishedperiodiccontrolofairleakagesandawarningmechanismforpersonsincharge.•Theairvalvesofthecompressoristransferredtoalocationeasytoaccessandthevalveplugturnstoclosepositionwhenthemachineisinoffposition.

Achievements in cooling water systems•Thermostaticvalveisinstalledonthemachineryunitsrequiringcoolingwaterandinthisway,consumptionofwatermorethanneededisprevented.•Insulationofthecoolingwaterpipelinesisrenewed.

Achievements in reduction of electricity consumption•Themachinesstopbetween17-22hourswhentheelectricitycostishigher.•Electricitymeterisinstalledtomeasureconsumedquantity.•Incoolingwater,utilitywater,hotwaterpumps,electricityconsumptionofpumpsisreducedbyanautomationsystemwithpressureandtemperaturecontrol.•Byincreasingcapacityofthemachines,productionquantityisincreasedandproductiontimeisshortened.

Achievementsinreductionofconsumptioninelectricityusedforlighting•Neon(fluorescent)lampswithelectronicballastareused.•Heat,light,movementdetectorsareinstalledatproperplaces.•Thelightsareshut-downatproductionpausetimes.•Luminairsatover-lightedplacesarecancelledbymeasuringwithluxmeter.

Achievement in heating/cooling offices/factories•Theofficesfarfromcoolingwatersourceareheated/cooledbyairconditioningsystem.•Naturalgasleakagetestisregularlyapplied.•Theofficedoorsareclosedatalltimes.

Training Activities•Energyefficiencytrainingsareincludedinwork-sitetrainings.•Apersoninchargeofenergymanagementisappointedandmeetingsareregularlyholdbythecommitteeformedtoassestherelevantactivities.•Theemployeesareinformedregularlyaboutenvironmentaldevelopments,suchaswastes,recyclingofbatteriesetc.throughwallpanels,circulationofbrochureswithinthecompany.

Activities carried in the Campus•Inordertominimizewaterconsumptionintheoffices,kitsadjustingthewaterdensityareinstalledinthewashbasins.Inthisway,almost70%watersavingisprovidedinthewashbasinsusedbypersonnelandemployees.•Theforkliftsusedinthecampusaretransformedfromgastoelectricitytominimizeenvironmentalimpact.•Theservicevehiclesaremodernizedtominimizeenvironmentalimpact.•ChemicalswhichdonotgeneratezincphosphatecementarestartedtobeusedinVestelWhiteGoods-CookingDevicesDye-House.Inthisway,zincphosphatecementgenerationisreducedtonil.Consequently,productionofphosphatecementispreventedby1.7tonspermonth.•Bathoperateswith24tonscoldwater,whichprovidesextraenergysaving.•Furtherenergysavingisprovidedbystoppingtwocirculationpumps.•Thereisalsosavinginwaterderivedfromwatersupplynetworkandnitricacidusedincleaningofbathrooms.Forexample,watersavingfromreplacementofactivationbathis8tons/week.•InthecampusholdingClassAEmissionCertificate,emissionmeasurementsareperformedregularlyinevery2years.


WASTE MANAGEMENT AND UTILIZATION OF HAZARDOUS SUBSTANCESVestelconductsactivitiesonthesubjectofcollectionandrecyclingofelectronicwaste,whichappearsasachallengenowfacingmanufacturersparalleltoincreaseinutilizationofelectronicequipment,incompliancewithWasteElectricalandElectronicEquipment(WEEE)andinternationalequipmentutilizationstandardRestrictionofTheUseofCertainHazardousSubstances(ROHS)acceptablebyallEuropeananddevelopedcountriesandlimitingutilizationofsubstanceshazardoustohumanhealth.

SinceJune2006,VestelWhiteGoodsmanufacturesallitsproductsinconformitywithRoHSdirectives(RestrictionofTheUseofCertainHazardousSubstancesDirective).Accordingly,utilization6heavymetals(lead,mercury,cadmium,Cromium+6,PBB,PBDE)inproductsislimitedduetotheirhazardouseffectsonhumanbeingsandenvironment.VestelWhiteGoods,withthebeliefthathumandeserveshealthierlife,startedtomanufactureRoHScompatibleproductsforthelocalmarketevenbeforethisdirectiveisputintoforceinTurkey.

ParalleltoRoHSimplementations,furtheractivitiesarecarriedoutwithintheframeofEUstandards(WasteElectricalandElectronicEquipment(WEEE).Pursuanttothisdirective,eachbrandisresponsibleforcollectionandrecyclingofitsproductwaste.VestelWhiteGoods,incoordinationwithcompetentstateauthorities,undertakesnecessarypreparationsforimplementationofWEEEdirective.

UTS(UnitedTechnicalServices),oneoftheestablishmentsofVestelGroupofcompaniescenteredinSlovakia,wasincorporatedtoproviderecyclingofelectronicwasteandre-useofelectronicequipmentasmuchaspossiblethroughprocesseswhichwillpositivelycontributetolivingconditions,byshowingconcernfortheenvironmentandnaturalresourcesin

allaspects.Thefundamentals,suchasvaluationofeveryrecyclableequipmentaccordingtohumanhealthcriteria,storageandpreservationofwastesaccordingtoregulations,disposalofwastesbyapplyingproperprocedures,constitutethebasisofouractiontargets.

Vestel,asarequirementofglobalenvironmentalresponsibilities,hasalwaysrefrainedfromusingozone-depletingorglobalwarming(bycreatinggreenhouseeffect)chemicalsinitsproductsandproductionlines.Basedonthisunderstanding,low-levelgasessuchasODP(ozonedepletionpotential)andGWP(globalwarmingpotential)areusedinmanufacturingofrefrigeratorsandairconditions.

Thebatterywastes,amongtheotherwastescreatedbytheproductslaunchedtomarket-excludingelectronicwaste-,arecollectedandrecycledbyTAP(PortableBatteryManufacturersandExportersAssociation),whereaspackagingwastesbyÇEVKOV(EnvironmentalProtectionandPackagingWasteEvaluationFoundation)accordingtothequota.Vestelhasmembershipinbothassociations.Inhousewastes,andotherwastescreatedbytheproductslaunchedtomarketarerecycledandrecovered,withoutnegative(hazardous)effectofrecyclingonnatureandhumanlife.Allinhousewastes,solidorliquid,aretransferredto“VestelWasteManagementArea”,outsidetheoperationalpremises.ThisAreaisdividedintosectionsandhasclosedroofandreinforced-concretefloor.Thewastesareclassifiedaccordingtotypesorhazardlevelanddeliveredtorespectivelocalesfortesting.Followingalltheseprocedures,theyaretransferredtolicensedrecyclingfirmsincompliancewith“HazardousWastesControlRegulation”and“SolidWastesControlRegulation”

Vestelfollowsanenvironmentallyfriendlypathalsoatthepackagingstage.Byusingnature-compatiblepaper“biol”insteadofstyrofoaminpackaging,thehazardcausedtoenvironmentisminimized.Also,forthematerialdeliveredbyManisaside-industry/suppliers


iscutby90%with“smartpackaging”and“casepacking”systemsthoughmanufacturingofbottompartofthepackageinthefactory.Inutilizationofnylonandcartonseparators,“recovery”systemisapplied.Ontheotherhand,utmostcareisgiventomanufacturesomeoftheproductssuchasplastics,cartonboardetc.fromrecycledmaterial.

Inaddition,utilizationofhigherqualityandlessheavierfabricinsteadofremnantinproductioniswidelyappliedprocess.Inthisway,itisaimedtominimizegenerationofcontaminatedwastesby80%untilJanuary2010.

Thescraps/refusesproducedduringprocessingofplasticinnerhousingofrefrigeratorsaregrindedinacrusherand100%isrecovered.35%oftherecoveredmaterialisaddedtotherawmaterialproviding35%savinginrawmaterial.

WastewaterispurifiedbyOIZ.InordertodiminishwastewaterloadonOIZandtolowerthebills,weencouragepracticessuchasthrowingusedtissuesintotrashesinrestrooms,regularcleaningofwastewatermanholesandtakenecessarymeasurestopreventthrowingofoil,kitchenrefusesetc.intomanholes.

ENVIRONMENTALLY FRIENDLY PRODUCTS FROM VESTEL

Vestel, which demonstrates outstanding achievement in all criteria, including social and environmental sensitivity, nature-oriented technologies, prefers to use environmentally friendly products in its production; today, this rate reached to 90%.Vestel perceives environmental sensitivity as a corporate responsibility which extends far beyond marketing tendency. To this end, Vestel uses environmentally less hazardous technologies during production and utilization stages. Vestelactswithconsciousnessforprotectionoftheworldandencouragesadoptionofgreentechnologyinthefieldofwhitegoodsandelectronics,moresensitive

toenvironment.Vestel,withitsproductscompatiblewithgreenlifeconcept,playsaneffectiveroleinminimizationofcarbondioxideemissionandloweringofconsumerelectricitybills.

Presently,effortsaremadetolaunchClassA++andA+++productstothemarketfollowingClassAandA+productsinordertoprovideeffectiveuseofnaturalresourcesandelectricalenergy.VestelWhiteHouseintenselyfocusedonresearchanddevelopmentactivitiestomanufactureproductswhichrequirelessutilizationofresourcessuchaselectricity,waterdetergent,gasetc.Theproductslabelscontaininformationaboutenergyandwaterconsumption.Thecustomerhotlinesaredevelopedtoservethecustomerswillingtogetdetailedinformationabouttheproducts.

ItbecomesmoreandmoreimportanttoinserttwoEUlabelsontheproducts.OneofthemisthecompulsoryEUEnergyLabelcoveringelectronicdevices,includingwashingmachines,refrigerators,andtheotheroneisEUEco-Label(Euroflower),whichisavoluntaryapplicationdefiningminimumenvironmentalcriteriarequiredforproductandservices.VestelreflectsmajorityofEUEco-Labelcriteriatoitsproductionlineinallstages,includingrawmaterialsupply,productmanufacturing,distribution,consumption,andutilization,andevenpost-usescraprecycling.

Superior Energy Saving-VestelLorus540SimliHGEA+No-FrostRefrigeratorwithinVestelproductrangeappearsasanoutstandingachievementonthesubjectofsuperiorenergysaving.VestelPlatinumAseriesairconditions,withClassAenergyconsumption,specialdesign,anti-allergicandantibacterialfeatures,providessafeandhealthycoolingandfreshfragrantatmospherefortheusersbyreplaceableodorcartridgesfittedto

thevent.


Water saving-Intraton1200CSLwashingmachine,differentthanotherwasherswith7.5kgcapacityavailableinthemarket,provides30%energysavingwhencomparedwithidenticalwashers,withwaterconsumption63lts.

TheEnergyClassAdishwasherHera7009launchedtomarketin2008conductswashingprocessaccordingtothequantityofthedishes,thanksto“Ecowash”technologyandhelpsustosavewater,timeandenergy.Thisproduct,withamechanismsuitableforwashingonebaskethalfloadbyusinganadjustablekey,offerscomfortandsavingatthesametime.VestelHera7009,whichprovides28%watersavingaccordingtoanormaldishwasher,10timesmoresavingaccordingtohand-wash,detectsdirtlevelandquantityofparticlesandaccordinglyprogramswaterandelectricityconsumption.Thehealth-orientedfeaturesofthisproductoffergreatadvantagesandcomforttotheconsumers.

Environmentallyfriendly“greentelevision”isintroducedtomarketduring2009summerfollowingitsexhibitionin2008IFA-BerlinFair.Vestel,withECOTVconceptdevelopedinthefieldofelectronics,helpedthecustomerstogetaccustomedtoanewtechnologyaimedtoreduceenergyconsumptionwhenthetelevisionisinstandbyposition.

Vestel,whichrecentlyconcentrateditseffortsonproductsconsuminglessenergy,targetstoreducestandbyenergyto0levelandforeseeshigherreductioninoperationalenergy.UnderthelightofcurrentdevelopmentsinPanelTechnologies,30%-40%energysavingisdeemedoptimistic.Againstgrowinginteresttowardsenergyefficiencyintelevisions,EUtookstepstoencourage“EnergyStar”practicesin

allproductranges,includingelectronics,inadditiontowhitegoods.

VestelusesnewlydevelopedLEDtechnologyinPixellenceseriestominimizeenergyconsumption.Consequently,theseproductsacquirethefeaturesof“DynamicContrast”.

Vestel, within the frame of activities performed to minimize energy and water consumption, succeeded to reduce energy and water consumption by 30% when compared to previous four years. As a result of environment-oriented efforts, 90% of the product range comprises Energy Class A and A+ products which provide 25% energy saving according to Class B.

Water Consumption 2003 2009 Saving

WashingMachines 12.6L/kg 6.13L/kg 51.30%

Water Consumption 2007 2009 Saving

DishWashers 15L 13L 13.33%

Water Consumption

1999 2000 2001 2009 Saving

UnderheCounterRefrigerators

1.05kWh/24h

0.32kWh/24h

69.50%

SingleDoorRefrigerators

1.77kWh/24h

0.95kWh/24h

46.30%

DeepFreezer 0.93kWh/24h

0.47kWh/24h

49.40%

RefrigeratorwithDeepFreeze

1.66kWh/24h

0.69kWh/24h

58.40%

Non-frostRefrigerators

1.87kWh/24h

1.02kWh/24h

45.40%

BulaşıkMakineleri 15L 13L 13.33%

Electricity Consumption 2003 2009 Saving

WashingMachines 1.21kWh 1.05kWh 13.22%


DishWashers 0.230kWh/kg 0.124kWh/kg 46.10%


AirCondition9000BTU 0.97kWh 0.77kWh 21%





GREEN ENERGY

Zorlu Energy Group progresses through an environment strategy seeking sustainable utilization of resources and mitigating negative effects on nature. It is aware that conservation of nature is a path to long-term profit and competition. To this end, Zorlu Group spends every effort to take effective measures to minimize social and environmental impact of its investments by undertaking life-cycle assessment, natural resources management, protection of natural ecosystems, species and cultural inheritance, and creation of designs according to demand.

Withthisobjectiveinmind,ZorluEnergyGroup:•Complieswithlawsandregulationsrelatingtoenvironment.•Spendseffortstominimizetheimpactofitsinvestmentsandactivitiesonnaturalresources.•Givesemphasizetoenergyefficiency,recyclingandwastemanagementbelievinginthenecessitytouselimitednatureresourceswithcare.•Monitorsandmanagesgreenhousegasemissiontomitigatetheeffectsofglobalclimatechanges.The continued attentiveness of Zorlu Energy Group employees to assessments on Health, Safety and Environmental sensitivity plays an important role in Company’s policies. These issues have precedence over other issues dealt by Energy Group management. Our target is: to take all kinds of measures to prevent occurrence of accidents, damages to human –life and plants and protection of environment.

ZorluEnergy,astheprincipalcompanyconductingGroupactivities,holdsISO9001:2000,ISO14991,OHS18001ManagementSystemcertificatesandconductsitsactivitieswithintheframeofIntegralManagementSystem.ZorluEnergyisthefirstauto-producerscompanyinTurkeyawardedQualityCertificate.TheCompany’scompliancewiththecriteriasetforthbyS&QMart-CERTiscertifiedinQualityManagementSystemCertificateTS/ENISO9001:2000issuedin2001.GrouphasaccomplishedrealizationofISO1400withGazdaşNaturalGasDistributionandZorluO&MCompanies.

FollowingcommitmentsconsiderablyhelpsZorluEnergyGroupinachievementtoitstargets:

•Topredictpotentialrisks,andtotakemeasuresagainstlosses,accidentsorhazardriskswithintheframeofhealth,safetyandenvironmentprotectionpolicies.•Tohelputilizationofnaturalresourcesandenergysourcesinthemostefficientandeconomicalmanner,tocontrolwastes(solid,liquid,gas)andnoisepollution,tomitigatenegativeeffectsofactivitiesonenvironmentandhumanhealth,toraiseawarenessofallemployees,sub-contractors,customersandcontractorsonthesubjecthealth,safetyenvironmentprotectionbytrainings.•Toestablishcooperationwithcustomers,employees,suppliers,competitors,neighboringenterprisesandothercorporationsobservingpublicinterest,toarrangemeetingstoheartheirproposalsanddemandsandbygivingsincereanswerstothequestionstomotivateperformance.•Toissuerealisticreportsontheeventsandaccidentstopreventreoccurrenceofsuchincidentsandtoincreaseperformance,tohelpthemtoderivelessonsfromtheseunfortunateevents.


•Todevelopaproposalsystemtoencourageparticipationtohealth,safetyandenvironmentprotectionprograms.•TopromoteHSEawarenessthroughtrainings.•TorealizeEmergencyManagementPlanwithhighestperformance,ifrequired.•Tocomplyapplicablenationallawsandregulationsrelatingtothesepolicies.

AllZorluEnergyGroupemployeesareresponsibleforhealth,safetyandenvironmentprotection.ZorluEnergyGroupandexecutivesundertakingdutiesinGeneralManagementareliabletohighercompanyprofilebeforethepublicopinionbyencouragingadoptionofthesepoliciesbytheirrespectiveunitsandimprovingperformanceonthesesubjects.

InallZorluEnergyGroupPowerPlants:•Inallproduction,maintenance,constructionactivities,weselectequipmentandtechnologieswhichwillminimizetheirnegativeeffectonenvironment.•Weuseenergyandnaturalresourcesinanoptimumway,andtrytoreduceecologicalfootprints.•Passingfarbeyondtheprinciple“Whopollutespays”,wedevelopsystemstopreventpollutionatitssourcebeforeoccurrence.•Wegiveprioritytopublichealthandsafety.•Wecomplywithnationalandinternationallawsandregulationsrelatingtoenvironment.•Wehelptoraiseenvironmentalconsciousnessthroughtrainingsforallemployeesandsub-contractors.•Weundertakeenvironmentalimpactassessmentatthefeasibilitystageofinvestments.•Werealizealltheseactivitieswithinanenvironmentmanagementsystemwhichseekscontinuousdevelopmentandregardenvironmentalconsciousnessasimportantpartofoursocialresponsibility.

ZorluEnergyreflectsitsconcernonenvironmentalsensitivitybythehightechinfrastructureandeffortsonthesubjectofenergyefficiency.Respectforenvironmentissubstantialpartofourproductsandservicesinouroperations,maintenance,andconstructionactivities.WedeemenvironmentalprotectionandnaturalresourcesconservationasarequirementofTotalQualityphilosophyandIntegratedManagementSystem.Theobjectistoincreasetheefficiency,toencouragetheemployeestobethemasteroftheirownjob,tofulfillsocialresponsibilitiesandtoensurecontinuousdevelopment.IntranetandSAP(SystemApplicationProduct)iswidelyusedbyourGrouptoprovideparticipationoftheemployeesinIntegralManagementSystemandenhancementofthissystem.Inaddition,weimplementstrategies,policiesandsystemswhichintegratesocial,ethicalandenvironmentalaspectsofsustainabledevelopmentandenableoperationoflife-cyclemanagement.

In2008,ZorluHoldingGroup,keepinginmindthenecessitytofulfillsocialresponsibilitiesatalltimes,hasbrokenentirelynewgroundinenergysectorbyholdingsharesinthefirstEnvironmentInvestmentFundformedbyİşbank.

RENEWABLE ENERGY

Theworldmovestowardstheenergybottleneckwitheachpassingday.Turkey’selectricityconsumptionin2008wasreportedas198.3billionkWh.Only17.4percentofthisenergyisgeneratedfromtherenewablesources.Underthelightofthisinformation,ZorluEnergyGrouplaunchedastrategyfordirectionof

investmentstowardsthelocalandrenewablesources.


Uponacquisitionofhydroelectricandgeothermalpowerplantswithinthescopeofprivatization,ZorluEnergyGroupplacedmoreimportancetotheassessmentofgeothermalareasandwindpotentialinTurkey.Thetargetistoraiseannualcapacity400millionkWhbytwofoldswithintwoyearsinthesaidhydroelectric(7)andgeothermalpowerplants(1)withtotalestablishedcapacityof126MW.ZorluEnergyGrouphasinitiatedseveralprojectsinthefieldofgeothermalenergyinthreedifferentregions,namelyDenizli-Kızıldere,Kütahya-SimavandManisa-Alaşehir.TheproductioncapacityofKızılderepowerplantinDenizlihasincreasedto14MWfrom6MWsincethedaysofitsacquisition.OurtargetistodevelopthepowerplantinKızıldereasthelargestgeothermalpowerplantinTurkeyoperatingwithanestablishedcapacityof60MW.

OneofthemoststrikingachievementsofZorluEnergyGroupwithintheframeofgreenlifeisthewindpowerplantpresentlyunderconstructioninOsmaniye,BahçeDistrict.,whichisreferredtoasbuildingstructureofenergysector.ZorluEnergyGroupplanstocommissionfirstphaseofthiswindpowerplant,thelargestbuiltinTurkeyoverasinglearea,inthesecondhalfof2009,withacapacity135MW.Presently,thefirstturbineiserectedandthepowerplantisexpectedtoproduce850-900kWhmillionperyearwhenthesecondphase,with110MWcapacity,iscompleted.

In2008,asanincentiveandratingmechanism,CarbonEmissionSalesContractwassignedwithECOSecuritiesGroupforthefirstphaseofthepowerplant,whichwillproduceelectricalenergywithoutcausingenvironmentalpollution.EmissionTradingTransactionsareexecutedwithinthescopeofincentivemechanismsintroducedbyKyotoProtocol.SinceTurkeyisnotapartytoKyotoprotocol,suchtransactionsareperformedunderVoluntary

AgreementsthroughVER-based(VoluntaryEmissionReduction)funding.WingpowerplantprojectisregisteredunderGoldStandardin“VoluntaryEmissionReduction”(VERPA-VoluntaryEmissionReductionPurchasingAgreement)market.

Osmaniye Wind Energy Power Plant is one of the Turkey’s and world’s largest energy project awarded Gold Standard certificate. Thisprojectsforeseesaproductionapproximately500millionMWhperyearwithzeroCO2emission;inorderwords,spreadofapproximately400,000tons(annual)CO2throughoutatmospherewillbeavoidedduringproductionofelectricenergy.

ZorluEnergypowerplantsproducesapproximately900thousandsCO2whilegenerating3.5millionkWhelectricityperannum.TherewillbenoincreaseinCO2emissionevenaftertheoperationofOsmaniyeWindEnergyPowerPlant,whichwillsupply1millionkWhadditionalelectricity.ByvirtueofeffortsinthefieldofEmissionTrading,itwillbepossibletofundthenewinvestments.

In2006,asaresultofthetenderinvitedbyStateWaterWorksAdministration,anewprojectwaslaunchedforutilizationofwaterreleasedfromtwodamsonMuğla-DalamanStream,respectivelywithacapacityof120MWand84MW.Thestudiesonthisprojectarestillcontinued.

ZorluEnergyGroupwillactivelytakepartinenvironment-orientedinvestmentsinthecomingyears.Inthiscontext,theprojectsinvolvingsolarenergyandotheralternativeenergieswillbefocalpointofourresearchactivities.Theresearchanddevelopmentactivitiesalsoinclude,thermalsolarenergy,coal


gasification,productionofelectricityfrombiomassandwastes,productionofcleanenergyusingpressuredifferential,implementationofclosedcircuitpowerplantprojectsinTurkey.

ANTI- CLIMATE CHANGE ACTIVITIES

ZorluenergypowerplansareequippedwithwaterinjectionsystemswarrantingNOXemissionunderforeseenlimitparameters.Thissystempreventingwarmingofatmospherebyusingwasteheatingenerationofsteamprovidesproductionenvironmentallyfriendlyenergy.Althoughtheparameterspecifiedforgasturbinesintheemissioncriteriaregulationsis80mgm³,Zorluenergyplantshasadequateinfrastructuretoreducethislimitto20mgm³.InZorluenergypowerplants,besidesmaintainingallparametersatminimumthresholds,itisalsopossibletoshifttosignificantlylowerlevelsaccordingtoenvironmentalconditions.

InBursapowerplant,bydevelopingaprojectwhichprovidesrecoveryofthewastewaterbyusingsteamgeneratedincoolingsystem,anadditionalelectricenergy,morethan1.5-2MW,issuppliedfromtheheatdischargedtoatmosphere.ThisisapilotprojectforTurkey.MeasurementandmonitoringofemissionvolumedischargedtoenvironmentbyBursapowerplantfromanypartofTurkeythroughinternetisafacilitywhichrequiresestablishedtechnologicalinfrastructure.

InZorluEnergyGroupplanstouseonlinestackgasmeasurementandmonitoringsysteminitspowerplants,whichisanewenvironment-orientedtechnologyimplementation.

OurnaturalgasdistributioncompanyintenselycontinuousitsactivitiestoencourageuseofnaturalgasasalternativefuelasitsCO2emissionismuchlessthancoal.Ourcompanyactivelyusesalmostallinformationchannelstoraiseawarenessoftheconsumersonthissubject.Inadditiontodistributionofbrochuresanddisplayofdetailsofnaturalgasonthewebsite,ouremployeesverballyfurnishnecessaryinformationtotheconsumersduringopeningofthenaturalgas.

Furthertoourendeavorsonthissubject,ZorluEnergyGroupactivelyfollowsenvironment-orientedtechnologies.Inthiscontext,bytransformingKızıldereGeothermalPowerPlant-whichwasacquiredthroughprivatizationinSarayköy,Denizli-toclosedcircuitpowerplant,itisplannedtocutBoraxdischargetoBüyükMenderes.ThisinnovativeimplementationwillpavethewaytoimprovementofagriculturallandinthelowerbasinandwaterqualityofBüyükMenderesRiver.Atthesametime,releaseofhighlevelofCO2emissiontoatmospherefromthepowerplantwillbeprevented.Also,inthisregion,pilotprojectsareinitiatedforgenerationofelectricityusingsolarpanels.

Emission Parameters

Ankara Power Plant

Bursa Power Plant

Kayseri Power Plant

L.burgaz Power Plant

Yalova Power Plant

Total

CO(ton/year) 14.19 257.04 59.13 50.81 72.50 453.63

SO2(ton/year) 2.27 0 0 1.48 0 3.75

Nox(ton/year) 262.80 863.25 285.55 217.16 166.91 1,795.66

Toz(ton/year) 4.73 0 0 2.29 2.54 9.56

CO2(ton/year) 194,900 266,619 246,377 187,428 62,608 957,932


BIOLOGICAL DIVERSITY (BIODIVERSITY)

WearewellawarethatbiologicaldiversityisoneofthemostimportantsourcesofenrichmentinTurkey.Biodiversityisconstruedwithinthescopeofourpoliciesaspartofenvironmentimpactassessmentfeasibility.Werealizeourinvestmentsinregionswherelouractivitieswillhavelessimpactonbiodiversity.Wetrynottomakeourinvestmentsinareasreflectingpotentialhazardstolivingspeciessubjecttoextinction.Wesupportactivitiescarriedoutforprotectionoflivingspeciesatriskofextinctionintheinvestmentregionsandtoraisepublicawarenessonthissubject.Allouremployeesregularlyparticipateinenvironmental-consciousnesstrainingsonAnatolianBiodiversity.Weconsidertouselocalplantspeciesinlandscapingandforestationworksatourpowerplants.Ourobjectiveistoprotectandpreservetheoriginalflora.Tothisend,wetaketheadviceoflandscapearchitects.

Windterminalsareanalternativeenergysourceandveryusefulforenvironmentprotection.However,therearecaseswherewindenergyhasnegativeimpactonwildlife,especiallyonbirdpopulation.Withthisconcern,anOrnithologyReporthasbeenpreparedwithinthescopeofOsmaniyeWindEnergyPowerPlantEnvironmentalandSocialImpactAssessment.

InOrnithology(scienceofwildbirds)Report,basicinformationaboutthepresentconditionsasreference,includinglocationsofsensitiveareasandbirdimmigrationyearsandpotentialimpactofwindturbinesandotherpremisesonwildlife.AccordingtotheresultsofthisReport,theimpactofwindturbineconstructionandoperationactivitiesonbirdpopulationisinconsiderablylow.

(Pleaseaccesstohttp://www.zoren.com.tr/FILES/Ornithological%20Report_tr.pdffordetailedinformationonthereport)

GREEN TEXTILE

Parallel to increasing public concern towards the environment problems in the world, there is rapidly growing interest to environmentally friendly products. Zorlu Textile Group, with its striking efforts in the field of green life, encourages green –life-oriented projects and their implementation in all stages of processes from production to distribution.

Therefore,integrationofenvironmentalsensitivityintoproductsstartingfromselectionofrawmaterial,production,distributionuptoconsumptionandutilizationstagesisveryimportantforadevelopmentofsustainableenvironmentpolicy.

Green-Life oriented Implementations in Zorlu Textile Group

•InZorluTextileGroup,post-consumptionresidualandindustrialwastewaterinthefactoriesisreasonablypurifiedanddischargedtoreceivers.Fishisraisedinthepoolgeneratedfrompurifiedwater.Also,therearerecyclingunitsinthemachinesandrecyclingprocessisperformedinthemostefficientmanner.•Systemsaredevelopedformonitoringofelectricity,water,naturalgas,steamandchemicalsconsumptionofallmachinery.Thesesystemsprovideconsiderablesaving.Especially,inthefieldofwaterconsumption,asavingattherateof35%isreported.


•Onnaturalgasbasis,steamsuppliedbyco-generationfacilitiesisusedincertainmachinesusedinthefactory.Pursuanttoemissionsourcesregulation,emissioniscontrolledbytakingmeasurementinevery3years.SteamrequirementismetZorluEnergyCogenerationunit.•Thesolidwastesproducedinthefactoriesareclassifiedaccordingtotheirspecificationsanddeliveredtotheaccumulationareasforrecyclingandtobeusedinside-industry.•Hazardousandsanitarywastesaredeliveredtowasteareaanddisposedaccordingtotheregulations.•Asaresultofeffortsforreductionofclothwastesinthefactories,5.8percentdecreaseinclothwastesvolumeisobserved.•Greeningandforestexpansionworksareperformedin35%oftheareasurroundingthefactory.•Inallstagesoftheproductionprocess,weshowutmostattentiontousehumanandnature-compatiblematerial.•Trainingactivitiesarecarriedouttohelpouremployeesindevelopingenvironmentalconsciousness.•Thepost-purificationclay,withinthescopeofmostlyhazardwastes,isdisposedbylicensedcompanies.•Inordertopromoteenvironmentalawareness,weadviceouremployeestocollectwastebatteriesathomesandbringthemtocompanyformassdisposal.

KORTEKS- Korteks,whichconstruesenvironmentasaprimaryissue,hasachievedtoanoutstandinglevelbydevelopingenvironmentmanagementssystems.Korteks,byadoptingenvironmentallyfriendlyapproachesalsoinfunctionalfields,successfullyappliesasustainableenvironmentpolicy.Ineveryactivity,whichrangefromrawmaterialandsupplierselection,toproductionandsupportservices,Korteksfollowsapathsensitivetowardsenvironment.Bypreferringenvironment-orientedtechnologiessincethedayofitsincorporation,Kortekshasestablished“QualityManagement”and“Environment

Management”systemswiththeparticipationofallemployeesinordertomanufacturehighqualitysustainableproductsinpolyesteryarn,Cipsindesign,production,controlanddeliveryprocesses.Theaimistominimizethenegativeeffectsofproductionandactivitiesonenvironment.

Korteks Environment Policies•Torealizeenvironmentallyfriendly,highaddedvalueproduction•Tomeettherequirementsoflegalprovisionsandotherdirectives•Topreventpollution•Tominimizeutilizationofnaturalresources-Tosupportenvironment-orientedactivitiesofthesuppliers.

PursuanttoEnvironmentManagementSystemappliedinKorteks,thedevelopedpolicyissharedwithallstakeholdersandeachyear,annualobjectivesandtargetsaredeterminedinlinewiththispolicy.

Forrealizationofthispolicy,Kortekscommits;•Topromotequalityofproductsbyfollowinginnovationsinthesector,•ToprovidesustainabilityandimprovementofQualityandEnvironmentManagementSystembyworkingwithinaplananddiscipline.•Tofulfillitsobligationsrelatingtoproductandenvironmentaccordingtotherelevantlawsandregulations,•Topreventpollutiontotheextentpermissiblebyprocessesandtechnologicalcapabilitiesandtoperformstudiestoreduceutilizationofnaturalresources,•Toencouragesuppliers’environment-orientedactions,

•Toapplythedirectivesof“GlobalCompact”.


KorteksholdISO9001:2008QualityManagementSystem,ISO14001:2004EnvironmentManagementSystemCertificatesandOekoTexStandard100Class1Certificateindicatingthatproductsarefreefromchemicalshazardoustohumanhealth.

Korteksundertakesspecialdesignstudiestoachieveeconomicandperformancetargetscoveringreductionofwastesourcesandvolume,preventionofutilizationofhazardoussubstances,minimizationofutilizationofnaturalresource,whichwillhelptomitigatetheeffectofpollutionencounteredduringprocessingandservicelifeoftheproduct.Korteksintenselycontinuesitsactivitieswithintheframeofsustainableenvironmentpoliciesseekingcleanerprocessesandproductsandsustainablesourceutilization.Cleaner processes- Developmentofproductprocessesandtechnologiesaimingtolowerthelevelofpollutionandtoreducewastevolume.

Cleaner products- Designanddevelopmentofproductsbyconsideringtheirservicelifeandfreeofcontaminationwhichwillcauseextensiveenvironmentalpollutionandproducewastesinbulks.

Sustainable utilization of sources- Modificationofproductrange/productionsysteminsuchawaytominimizeutilizationofmaterialandenergyperunitproductbasis,asimplementedforentireproject.

ENERGY EFFICIENCY

Inverter Project-Korteksundertakeswiderangeofimprovementactivitiesforminimizingconsumptionofnaturalresources.Oneoftheimprovementactivitieswhichweconductis“EnergyEfficiency”project.Inthiscontext,Korteksisthesecondaward-winningcompanyyatEVUPCategory2in“2006ProjectandImplementationsContestonIncreaseofEnergyEfficiency”organizedbyMinistryofEnergy.Korteks for the fist time announced as the second award-winning company on 1 March 2007,

among 400 companies participating in the contest from all over Turkey. The object of our project is; to reduce energy consumption per unit product basis, but not the volume of energy consumed. Accordingly, we minimized utilization of natural resources by increasing production consuming same volume of energy, and strengthened our competition capacity

Asresultofstudiesandmeasurementscarriedoutforsavingpurposeson800motorsamong20,000motorsavailableinKorteks,invertersareconnected382motors.Inselectionofmotors:weconsideredhigh-capacitymotors,direct-drivemotors,andmotorssuitableforautomation.

Attheendoftheproject:•AninvestmentwithatotalamountYTL1,540,812wasmade.•Energysavingreachedto11,428,307kwhwithin1year.•ThisenergysavingcorrespondstoTOE2414•Project-Returnisgainedwithin1.08years•Savingrateaccordingtosystemsappliedwithinthescopeprojectis35%.•Savingrateaccordingtototalconsumptionwithinthescopeofprojectis3%.

WASTE MANAGEMENT-Classificationandseparatecollectionofthewastesatthesourceconstitutesthebasisofourwastemanagementsystem.Therefore,thewastesproduceduponproductionandserviceactivitiesarecollectedseparatelyatthesourceandeitherdisposedincompliancewiththeregulationsorbecomeavailableforrecyclingprocess.Korteks,whichusescontinuousdevelopmentconceptasguideforitsactivities,insistentlyworksonimprovementprojectinvolvingminimizationofwastevolumeandconsumption


ofnaturalresources,ascommittedinCompany’spolicy.Forasustainableenvironment;ourtargetistosmooththenegativeeffectsofourproductiononenvironmentasmuchaspossiblebytakingadvantageoftechnologicalinnovationsandtoraiseenvironmentalconsciousnesswiththeparticipationofallemployeesandstakeholders.

Tothisend;

1-Environmentalimpactishighlyconsideredasofdesignstage.Wheneveritisrequiredtomanufactureanewproductortoprocurenewrawmaterial/auxiliarymaterial,priorityisgiventoenvironmentalimpactassessment.Itisnecessarytodeterminewhetheritcontainsrestrictedsubstancesornot,whataretheenvironmentalimpacts,isthereapossibilityforrecycling?Ifnot,whatisthedisposalprocedure?etc.2-Fullcomplianceisshowntonationalandinternationallawsandregulations.

Thewastesproducedinourplantsandpremisescanbecategorizedunder4items;solidwastes,hazardouswastes,sanitarywastesandwastewater.

Thewastesarecollectedseparatelywheretheyareoriginallyproduced(fromsource)andtemporarilystoredinWasteAreauntiltheyaredeliveredtofinaldisposal/recyclingplant.PursuanttoapplicableEnvironmentManagementSystem,anEnvironmentCoordinatorisassignedtoeachsection.EnvironmentCoordinatorisresponsibleforcollectionofwastesineachsection,deliveryofthesametowasteareaandperformanceofimprovementactivitiesonthesubjectofwastes.Accordingly,thewastetypesandquantitiesaredefinedinthefollowingtable.(2008dataistakenasreference)

Hazardous Wastes- Improvementactivitiesarecontinuouslyaccomplishedforallwastes.Theimprovementactivitiesaimtoreducethewastevolumeandtoincreasetherecyclingrate.

AllhazardouswastessubjecttodisposalaredeliveredtoIzaydas,alicenseddisposalcompany,asperthesignedcontract.Wastetransportationismadebylicensedvehicles.Wasteoilsarelistedbycategory1inWasteOilControlRegulation.Theyaredirectlytransferredtolicensedrecyclingfirm.

Electronicwastesarealsodeliveredtolicensedrecyclingfirm,includingallrecyclablesolidwastes.WecooperatewithÇEVKO(EnvironmentProtectionFoundation)for“MarketLauncher’s”responsibilitysetforthinPackagingWastesControlRegulation.

Waste Type Process Waste Type Process

Yarnoil Recycling Paper/Carton Recycling

TEG Recycling PlasticWastes Recycling

MachineLubricant Recycling Wood Recycling

ChemicalSolutions Disposal Metal Recycling

Oligomercompositions

Disposal OligomerPowder

Disposal

ContaminatedWastes

Disposal PolymerPowder Disposal

Cartridge Recycling PTAPowder Disposal

Cell Recycling Silica-gel Disposal

ElectronicWaste Recycling AirFilter Disposal

Battery Recycling Glass Recycling

MetalSandFilter Disposal Labelrefuses Disposal

Fluorescentlamps Disposal Generalgarbage Disposal

SprayBox Recycling ContaminatedPackages

Recycling


Yarn Oil-Byvirtueofimprovementefforts,aspecialfilteringprocedureisdevelopedwhichbroughtextensiverecyclingoptions.

TEG-Byvirtueofimprovementefforts,theservicelifeofproductiselongated.TEGquantityisreducedbyapproximately10%.

Contaminated Waste(Cloth,Absorbents,Cups)-Byvirtueofimprovementefforts,contaminatedwastequantityisreducedbyapprox50%duringthelast5years.

Cartridge- Uponparticipatingin“PlanetPartners”projectofacartridgecompanyasof2008,thewastecartridgesstartedtobedeliveredtotherelevantcompanyforrecycling.Therehasbeen75%decreaseinthecartridgewastevolumeasof2008.Also,asof2009,thecartridgesbroughtbytheemployeesfromhomesareincludedintowastemanagementsystem.

Battery (cell)-Asof2008,wastebatteriesaretransferredtoPortableBatteryRechargeableAssociation.Asaresultofimprovementefforts,thesectionswidelyconsumingbatteriesstartedtouserechargeablebatteries.Also,thebatteriesbroughtbytheemployeesfromhomesareincludedintowastemanagementsystem.

Accordingto2008inputdata,approximately70%ofhazardouswastesandapproximately99%ofthesolidwastesaredeliveredtorecyclingplants.

PursuanttotheRegulationonControlofAirPollutionCausedbyIndustrialPlants,KortekshasobtainedacquiredGroupAEmissionPermissionCertificate.AccordingtoRadiationSafetyRegulation,thelicensesofradioactivesourcesarerenewedinevery5yearsandtheresultsofmonthlymeasurementsaresenttoTurkishAtomicEnergyInstitutionattheendofeachyear.ThewastewaterisanalyzedaccordingtotheRegulationonControlofWaterPollutionandis

conveyedtoOIZpurificationplant.ThecompanyholdsDischargePermissionCertificatedissuedbyOIZ.By virtue of improvement efforts, electricity consumption is reduced by approximately 10%, natural gas consumption by approximately 10%, and water consumption by approximately 20% during the past 5 years.Trainings- Korteksrenderscontinuoustrainingtotheemployeestoraiseenvironmentalawareness.Thetrainingscoverenvironmentmanagementsystem,wastemanagementsystem,emergencysituations(earthquake,fireetc.),MSDS,utilizationandhazardouseffectsofchemicalsetc.Withtheeffectofthesetrainings,theemployeesstartedtoadoptenvironmentalpracticesalsoathomebesidestheoffice.Theemployeesbroughtrecyclablehazardouswastessuchascartridgesandbatteriestothefactoryandactivelyparticipatedinimprovementactivitiesonthesubjectofreductionofwastevolume,andpreventionofover-utilizationofnaturalresourcesbytheirproposals/recommendations.

Environmental Management In Supply Chain- Korteksalsoencouragesitssupplierstoparticipateinenvironment-orientedactivities.BygrantingextrapointtothecompaniesholdingISO14001inSupplierSelectionandEvaluationsystem,ithelpsexpansionofactivities.Thecompanieswhichdonotimplementenvironmentmanagementsystemarefurnishedremarksandthesupplierswhoarenotwillingtomeetenvironmentalrequirementsaredisqualified.Additionally,inthesurveyscarriedoutrelatingtoenvironmentmanagementsystem,besidesenlighteningthesuppliersaboutexpectations,trainingisgivenonlegalobligationsandwastemanagement

system.


ENVIRONMENTALLY FRIENDLY YARNS

Korteks, by adopting an integrated approach to product ecology as a fundamental of environmentally friendly production, otherwise, by encouraging development of a management system sensitive to environment and operating with the consciousness of environmental responsibilities, fulfills its part of duties with regard to resolution of environmental problems by giving place to environmentally friendly, high added value products in its product range.Korteksyarn,asapioneerinthesectorindevelopingandimplementingenvironmentallysensitivepolicies,hasre-evaluatedandmadethenecessaryrevisionitsproductrangeunderenvironmentallyfriendlyproductionconcept.Developmentandproductionofdope-dyedproductsisimportantachievementinthiscontext.TAÇAntimicrobialyarns,TAÇFlameRetardantsyarnsanddope-dyedyarnsarethemajorenvironmentallyfriendlyproductslaunchedasaresultofresearchanddevelopmentactivitiesinthisfield.

Intheseproducts,theyarngainsitsfunctionalfeaturesduringtheproductionstage.Whilethisprocesscanbeaccomplishedafterwardsthroughchemicalfinishingprocess(aprêt),shiftingittoyarnproductionstageisveryimportantfromtheaspectsofenvironmentalimpact,long-termcost,waterandenergysaving.Thereasonofthisapproachisthattheprocessofaddingchemicalstofabrictogivefunctionalfeaturesisnolongerconsideredafteradoptionofenvironmentallyfriendlyproductionconcept.Inthestagesfromrawmaterialtofinished-product,thetextileproductsundergomanyprocesseswhichcloselyconcernhumanlifeandecologicalbalanceandenvironment.Thereforeproductionandutilizationoftextileproductsisveryimportantfororganiclifeandenvironment.Dope-dyedproducts,whichareconsideredasalternativetodyingandaprêtprocesses,provideconsiderablesavingsintime,energyandwastewaterpurificationcosts.

TAÇ Antimicrobial-InthegarmentsmanufacturedfromTAÇAntimicrobialyarnsdevelopedbyKorteks,thespreadofodorfromthedeadbacteriaispreventedandinthisway,thefabricremainsodorlessandsmoothforalongtimeasifitisnewlywashedandthecustomerfeelsthenotionofcleanliness.Also,theyarnswhichpreventodorinclothenableustoreachthedesiredcleaninglevelbywashingourclothsatlowertemperatures.ThefabricproducedfromTAÇAntimicrobialyarnsremainunwornanddurableforalongtimeastheyarerarelyneedwashing,whichisanotherfactorleadingtosavingfromwashingcost.Nodeformationisobservedintheclothsmanufacturedfromtheseyarnsmaintainsastheyrequiremachine-drying,orcolorprotectionwashing.

TAÇ Flame Retardant-TAÇFlameRetardantisaspecialkindofyarndevelopedbyuseofhightechnology,whichfunctionsasanaturalflameretardant.ByvirtueofchemicalstructuresofphosphorcompoundsinPolymerchain,theflame-retardantfeaturemaynotbeaffectedbyrepeatedwashingordry-cleaningprocesses.

TheotherfeaturesofthetextilematerialmanufacturedfromTAÇFlameRetardantarethesameasthosemanufacturedfromnormalpolyester.TAÇFlameRetardantissuitableforflammabilitytestingappliedbothinhometextureandgarmentsinthecountriessuchasUSA,Japan,Germany.TAÇFlameRetardantcertificateisobtainedfromnationalaccreditationlaboratoriesinFranceconfirmingcompatibilityoftheproductswiththeflammabilitystandardsofrelevantcountries.


Dope-Dyed Polyester- Polyesteryarnsinvariouscolorscanbeproducedthroughdope-dyingprocess.Inthisprocess,astheyarniscoloredduringtheproductionstage,thereisnoneedforconventionalpolyesterdyingprocess.Byusingdope-dyedyarnunderthe“Cleanproduction,cleanproduct”concept,itbecamepossibletoaccomplishenvironmentallyfriendlyproduction.Thisprovidessavinginwaterandcolorantconsumption.Italsoenableswastemanagementandcontrolofindustrialpollution,whichpavesthewaytoreductionofrecyclingandpurificationcostsandenergy/timesaving.

Korteks, in compliance with the pursued environmentally friendly production policy, creates new markets by developing new and different products and strengthens its image by accomplishing environment tally friendly production and at the same time, continuous its activities within the frame of sustainable environment-oriented policies.

Korteksundertakesalltestsrelatingtochemicalandphysicalqualityoftheproducedyarnsinthelaboratoriesdevelopedwithinitsorganization.Here,mostadvancedtechnologiesareappliedinordertocontributetoimprovementofproductqualityanddeclinationofproductioncostcurve.Byusingautomaticwindingandpackagingsystemforthefinishedproducts,theproductqualityisraisedtohigherlevelsparalleltoincreaseinefficiency.

ZorluTextileGroupissubjecttoperformanceauditingfromtheaspectofproductqualityandsocialresponsibilitybyitsinternationalcustomers(JCPenney,Target,Wal-MartStoresSearsetc)inadditionaltoindependentcertificationinstitutions.

ZORLUTEKSWithinthescopeofEnvironmentandOccupationalSafetyPolicy,Zorlutekscommits;•Tocomplywithlegalprovisionsapplicabletoouractivities,•Topreventpollutionand/orminimizeitseffectatthesource,•Tousetheglobalresourcesinthemostefficientmannerandtoencouragerecycling,•Toraiseawarenessofallemployees,suppliersandlocalcommunityaboutEnvironmental,HealthandSafetyrisks,•Toundertakeriskanalysisonenvironment,healthandsafetyinallactivitiesandtocreateasafeworkingatmospherebytakingrisk-minimizingmeasures.

AteamcomprisingdivisionheadsrepresentingdifferentdivisionsisformedwithintheEnvironmentManagementSystem.ThesepersonsfunctionunderthetitleofDivisionManagementRepresentativeandreporttotheManagementRepresentative.Itisplannedtostructureanenvironmentmanagementunitwithintheorganization.

Thepermitsandlicensesobtainedbythefactoryarepursuedbythepersoninchargeofenvironment.EnvironmentImpactAssessment(EIR)ReportisissuedduringtheincorporationstageoftheCompanyandnecessaryrevisionsaremadewithinthelegalproceduresetforthrelatingtoenvironmentimpactassessment.

Environmental Risk Assessment- Eachyear,Zorluteks,incooperationwiththerelevantdivisions,regularlyaccomplishesenvironmentalriskassessment.EnvironmentalriskassessmentsareholdatenvironmentengineeringdirectoratewiththeattendanceofDivisionManagementRepresentatives.Inthisassessment,theenvironmentalrisksaredeterminedandaplanispreparedaccordingly.Also,


everynewprocessandequipmentisevaluatedbytheEnvironmentandOHSEngineers.MSDSformsarereviewedfortheconsumptionchemicalsinordertopreventuseofproductshazardoustoenvironmentandpurificationplant.

Environment Meetings- MonthlymeetingsareholdregularlyunderthechairmanshipofManagementRepresentativewiththeattendancesofdivisionmanagementrepresentatives.Inthiscontext,anenvironmentmanagementsystemisestablishedwithinaplan.Thesemeetingsarecontinuedtoprovidesustainabilityandeffectivenessofthesystemandbesidestheeffortstoraiseenvironmentalawareness,subjectssuchaswastemanagementandnaturalresourcesconservationarealsodiscussedinthesemeeting.Zorluteksintegratesenvironmentmanagementunderstandingintotargets.Totally399targetsarepursuedbythetopmanagementanddivisionheadsand50ofthesetargetsisorientedtoourenvironmentalpolicies.Thesetargetsaredividedinto2sub-categoriesaswastesandnaturalresources.

Thedivisions’targetsarere-consideredinthemonthlytargetreviewmeetings.Thedivisionsarerequiredtosubmittheiractionplanstothetopmanagementforrealizationoftheirtargets.Inthesemeetings,decisionsaretakentocommunicateenvironmentawarenesstosuppliersandemployeesandtodevelopco-operationwiththesuppliers.

IntheManagementReviewmeetingsholdonannualbasis,thesubjectssuchaswastevolume,andsavingsinthepreviousyear,budgetallocatedforenvironmentandenvironmentpoliciesarediscussedasmajoritemsoftheagendaanddecisionsaretakenforaction.ThedecisionspassedinthesemeetingsarepursuedbyManagementSystemsDivisionwithinanannualplan.

AnotheroccasiontodiscusstheenvironmentalproblemsisthemeetingsmonthlyorganizedbyOHSBoard.Thepersoninchargeofenvironmentregularly

followsthelawsandregulationsandsubmitstheamendedprovisionstotheattentionoftheattendeesinOHSmeetings.

Trainings- ZorluteksTextiletargets,asarequirementofestablishedenvironmentpolicies,efficientuseofglobalresources.Inthiscontext,itregardstheeffortsaimedtoimproveconsciousnessofemployees,suppliersandcommunityasafocalpointofitsactivities.Ateamcomprising20personisformedtorenderconsultancyservicestothedivisionsonthesubjectofManagementSystems,andtheyoperateincollaborationwithdivisionheadsintheemployee-consciousnessimprovementactivities.

Theenvironment-orientedactivitiescarriedoutinthefactoryaredisplayedintheEnvironmentandOHSbillboardsforinformationtoemployees.InthesitesurveysperiodicallyorganizedbythemanagementSystemsandEnvironmentrepresentative,thedeficienciesaredeterminedandtheresultsareconveyedtothedivisionheadsfortakingrecoveryactions.Duringthissurvey,face-to-faceinterviewsaremadewiththeemployeestoexchangeviews.

Oneofthemostimportantactivitiescarriedoutonthesubjectofimprovementofenvironmental-consciousnessistheenvironment-orientedtraining.Thetrainingsareplannedbytrainingchief’sofficeandconductedbymanagementrepresentatives,personinchargeofenvironmentandmanagementsystemsdivision.

2008 (Person) 2008 (Training Hours)

AlreadyEmployedPersonnel 1,721 379

NewlyRecruitedPersonnel 264 134


Atthepreparationstageofcertification,thedivisionheadsconsistingof208personsarerenderedforeign-sourcetrainingonthesubjectofenvironmentmanagementsystemandinternalaudit.

Thechemicalsuppliers,sub-contractors,visitorsandthecustomers,upondemand,areregularlyinformedandadvised,verballyand/orinwriting,bythepersoninchargeofenvironmentaboutthepotentialrisks.

ENVIRONMENT-ORIENTED PRACTICES

InZorluteks,savingandrationalutilizationofnaturalresourcesisaprimaryissueobservedbythetopmanagementandanindicationofconcernonthissubject.Theactivitiescarriedoutinthiscontext;

WasteManagement-Intheoperationalpremises,itispossibletofindMetal,Paper,Plastic,hazardouswastesandbattery(cell)boxesinvarioussections.Thehazardouswastesseparatelycollectedfromtheseboxesareeitherdisposedordeliveredtotherecyclingplantsaccordingtohazardouswastescontrolregulation.Non-hazardouswastesaretransferredtotherecyclingplantsforre-useasrawmaterial.

Inthiscontext,effectiveactivitiesarecarriedoutinthefactoryoncollectionofhazardouswastes.Thepersonnelinchargeofwastebatteriesandorganicwasteoilsarecontinuouslynotifiedaboutthedevelopmentsthroughcirculationofbrochuresandwithintheframeofenvironmentalconsciousnessimprovementactions,theemployeesareencouragedtobringthewastesproducedoutsidethecompanytothefactory.

Volumeofwastebattery(cell)accumulatedintheFactory

Chemicals-Thereisapurificationplantoperatingwithacapacityof7200m3/dayforthewastewaterproducedbytheFactory.Allthewastechemicalsaredeliveredtothispurificationplant.Followingthecompletionofchemicalandbiologicalpurificationprocess,theyaredischargedaccordingtothestandardproceduresetforthintherelevantregulation.

Wastechemicalswhicharelikelytocausehazardtopurificationaredeliveredtothedisposalplants.Itistriedtominimizeconsumptionofchemicalsbymakingimprovementsintheexistingchemicalprescriptions.Annually20,000kgpaintisrecycledinprint–dyeing.

Energy- Zorluteks,with“WaterManagementandWasteWaterPurificationPlantRehabilitationProject”launchedin2005,hasintensifieditsactivitiesinthefiledofenergysavingandreducedthedailywaterconsumptionto6,500m3from9,500m3.Byconsidering35%savingachievedinwaterconsumption,itisplannedtoreflectthistoenergy(electricity,naturalgas,steam)andpresently,studiesareprogressing.Achievementsonsaving:

•Inadditiontoexistingwastewaterrecyclingunits,flash-steamcondenseheatrecyclingprojectsaredevelopedforcontinuousmachineswithheatexchangerandadverse-currentwashingmechanism.•Savingincompressedairconsumptionisprovidedbyshorteningstraightblowingprocessandwithoutcausingdecreaseofperformanceinover-locking(leno)process,whicharemajorfunctionsofairjettextilemachines.•Inthetextileairconditioningstations,air-cyclenumberisreducedandinventor-automationsystemisappliedinthemoisturepumps.•Inventor-automationsystemisadoptedalsoinpurificationprocessaccordingtooxygenrequirement.

2007 2008

CELL 19kg 63kg 63kgwastecellequalstoapproximately4,543units,whichmeans18,170tonsofwaterispreventedfrompollution.

2007 2008

OIL 6,580kg 7,238kg Byassuminganincreasearound650kg/yearinwastevegetableoil,itisaimedtoprevent65millionm3waterfrompollution.


•Inventor-automationsystemisinstalledonthecoolingtowerwhichwillprovideoperationofthesystemaccordingtoheatandpressure.•Inventor-automationsystemisinstalledonsoftandhardwaterpumpsinthehydrophorechamberwhichwillprovideoperationofthesystemaccordingtothepressure.•Rotationspeedofthecirculationfanmotorsisdecreasedinramanddryingmachines.•Asaresultofthemeasurementsandtests,harmonicfiltersystemisinstalledinthefiningplant,whichenabledustoeliminatemanyfailuresinelectricityandelectronicdevicesnotlikelytoberesolveduntilnow.•Energymonitoringsystemisestablishedonpermachinebasisfortrackingofproductionandconsumptionlevels.

Zorluteksallocatesabudgetfortheactivitiesinsistentlyperformedonthesubjectofenvironment.

Withinthescopeofscientificresearches,ZorluteksTextilehasundertakenstudieswithinthebodyofIstanbulTechnicalUniversityforstabilizationofpurifyingslurrydischargedfromthepurificationplantandtheresultsarereportedtoZorluteks.

•AnnualcarbonandnaturalgasemissionofZorluteksismeasured.Byconsideringmeasurementresults,itisplannedtorealizeforestationworksinordertominimizetheeffectofhazardousgasdischargedtonature.•WhileaverageannualinletCODwas3,500mg/ltin2008,CODwasreducedto250mg/ltinthedischargedwaterincompliancewiththestandards.

•Whilethevolumeofpurifyingslurrywas1,100,000in2008,studiesarecarriedouttoreducethevolumeofpurifyingslurryto750ton/yearin2009.Thisrefersto30%reduction.•AnAgreementwassignedwithÇEVKOV(EnvironmentProtection)FoundationforrecyclingofpackagesbelongingtotheproductssoldbytheCompany.Inthisway,36%of3,150,000kgwillbecollectedfromthemarketforrecycling.•ThewastevolumesaremonthlyreportedtothedivisionheadsbytheEnvironmentEngineerstoenablethemtotakenecessaryaction.2008wastevolumes;

Energy Saving 2005 2006 2007

SavingRateAccordingToYears 2.16% 6.46% 11.51%

Waste Type Process 2008 TOTAL

Wastepaper-carton(kg) Recycling 719,020

WasteMetal(kg) Recycling 97,180

NickelGauge(kg) Recycling 12,320

Plastics-General(kg) Recycling 121,088

SanitaryWastes(kg) Disposal 247

Cable(kg) Recycling 1,960

Contaminatedwaste(kg) Disposal 4,198

Fluorescentlamp(kg) Disposal 4,198

Electronicwastes Recycling/ConstantStorage 866

Cell(kg) Recycling/ConstantStorage 3,320

Cartridge-Toner(unit) Recycling 53

Wasteoil(kg) Recycling 250

Wastevegetableoilwaste(kg)

Recycling 11,620

Wastebattery(kg) Recycling/ConstantStorage 6,580 IN HOUSE RECYCLING

Blackpaint(kg) Recycling 15,800


Additionally,chemicalscompatiblewithREACHdirectivesofEuropeanChemicalsAssociationarepurchasedandnecessarymeasuresaretakenincorporationwithourstakeholders.

Activities Oriented to Raise Public Awareness- Thereareapproximately500treesintheareawithinthefactoryboundaries.Eachyear,arrangementsaremadewiththekindergardenchildrenontheoccasionofWorldEnvironmentDay.In2008,about“100treeswereplantedbyZorluteksatÇorluHighSchool.Additionally,ZorluteksAlso,Zorluteksplanted1,000treesinLüleburgazCounty.

Anotheractivitycarriedouttoraisepublicawarenessistheutilizationofhandbagsmanufacturedfromwasteclothinthefactoryoutletstoreinsteadofplastichandbags.Theobjectofthisprojectistoencouragetheconsumerstousefabricbagsandtodeveloptheirconsciousnesstowardsnature.In2008,240,000fabrichandbagsareusedinsteadofplastichandbags.

Environmentally Friendly Products- Zorluteks,initsQualityPolicy,commitstoplaceimportancetoinnovationandcreativeness.Inthiscontext,environmentallyfriendlyproductsareincludedintheproductionline.

R&DDepartmentwithinthebodyofcompanyfocuseditsactivitiesondevelopmentofenvironmentallyfriendlyproducts,prolongationofproductservicelifeandservicelifeandpreventionofover-useofnaturalresources.

Activities Oriented to Prolongation of Product Service Life;By practicing different apret and yarn applications weachievedoutstandingresultsinpost-washappearanceoffabricaccordingtostandardproducts.Theshrinking,pilling,pre-ironingbunchingoffabricisconsiderablyminimized,resistancelossremainedatlowerlevelsandbetterresultsareobtainedintouch/appearance.Finally,prolongationofproductlifehadpositiveeffectsonutilizationofnaturalresources.

Asresultofresearchesonnon-ironnaturalfiberfabric,bunchingresistanceoffabricisincreasedbyusingfiberinsteadofchemicals.Consequently,thereisnoneedtoironfabricafterwashing.Byminimizinguseofchemicalsincreasingperformanceandeliminatingpost-washironing,energysavingisprovided.

Intheprojectdevelopedby nano technology,itisaimedtoeliminatepost–washironingrequirementin100%cottonfabricthroughapretprocess.


Activities Oriented to Minimization of Consumption of Nature Resources The recycled cotton isusedintheyarnsproducedfromrecycledwasteclothaspartofinnovativeproductpractices.Inthisway,itisaimedtominimizeconsumptionofcottonandreducetheutilizationrateofnaturalresources.

By use of Dope-Dye-polyesteryarn,considerablesavingisprovidedinconsumptionofwaterandcolorantitemswhencomparedtonormalbobbinyarndying.Thisprocessisveryimportantforpreservationofwaterqualityandoptimizationofwaterconsumption.

Bymanufacturingproductsfromorganiccottonitisaimedtoencourageorganicagriculture,toreduceenvironmentaldamage,andtocontributetodevelopmentoforganicproductmarket.AllorganicactivitiesarecontrolledunderGOTScertificate.TheproductionisphysicallystartedinMay2003.ThecomplianceoforganiccottonwithGOTSstandardsiscontrolledinallstagesfromrawcottontodyeingandapparelprocess,includingsocialcriteria.

AdvantagesofOrganicCottonProduction;

•Inthenormalcottonagriculture,generally,syntheticfertilizersanddrugsareusedmorethanlaborforcewhichcauseswaterintoxicationandbiologicbalancedisorder.•Inprocessingofnormalcotton,thepeopleworkincardingandthreadingmachinesencountersriskofdamagefromchemicalsremainingoncotton.•Inproductionoforganiccotton,useofsyntheticresins(easycareapret,non–ironapret)isnotallowed.

Zorluteks,byexpandingitsproductrange,triestoattractitscustomersandtopromotesaleoforganicproducts.

Another development in the field of ecological products is the production of product with Eco-Text certificate. Eco-Texcertificateisahumanhealthandenvironment-orientedcertificationsystem.Zorluteks,isaholderofEco-Texcertificatesince1998.Itholds4differentcertificatesduetodiversityofproducts.Eco-Texisfocusedonchemicalsandcolorantsandencouragesuseofdyesandchemicalsfreeofcancerogenicsubstances,

sensitivetohumanhealthandenvironment.


BUSINESSES SHOULD WORK AGAINST CORRUPTION IN ALL ITS FORMS, INCLUDING EXTORTION AND BRIBERY.

Anti- Corruption


ANTI-CORRUPTION AND BRIBERY

ZorluGroup,whichsheltersTurkey’sleadingcompanies,highlyrespectstoethicaltradingandethicalcompetitionprinciple.Absoluteloyaltytolaws,respecttosocialrulesandconformitytoethiccodeconstitutesthebasisofouractivities.WithintheethiccodeappliedinallGroupcompanies;•ZorluGroupensurestop-levelconformitywithapplicablelawsandregulations,nationalandinternationalrulesandintra-companypolicies.•ZorluGroupensureskeepingofallreports,financialtablesorrecordsaccordingtonationalandinternationalaccountingprinciples.•ZorluGrouprefrainsfromofferingunjustorfinancialadvantage,directlyorindirectly,toapublicand/orprivatesectorofficialtoreceivespecialserviceortoaffecttheresultofanactivityconductedbytheGroup.•ZorluGroup,besidesthecompetitionlawsandregulationsinforce,actsincompliancewithallcompetitionprovisions,adaptationsandcontractsinforceregulatingitsoperations.•ZorluGroupsandassociatedcompaniesrefrainfromsupportingapoliticalparty,grantingdonationsorfinancialaidtopoliticalpartiesandperforminglobbyingactivities.•ZorluGroupworksonlywiththereputablecustomersandsuppliersconductinglawfultransactions,andusesthefundsacquiredfromlegalsources.•ZorluGroupstakesallnecessaryactionstopreventconflictsofinterestanddoesnotmisuseGroupsourcesandexerciseundueinfluence.•ZorluGroupensuresthattheinformationbelongingtoemployees,customersandsuppliersistreatedaccordingtotheconfidentialityrulesandonlyauthorizedpersonnelshouldhaveaccesstosuch

informationtotheextentofhis/herresponsibilities.•ZorluHoldingrefusestoacceptanygift,hospitalityandpersonalfavorcontrarytothelawandstandardcorporatepolicies.•ZorluGroupemployeesareresponsibleforexploitation,developmentandprotectionoftheintellectualpropertiesoftheGroup,andshowthesamerespecttotheintellectualpropertyofthird-parties.•ZorluHoldingensuresthatallinformationdisclosedtopubliciscomprehendible,correct,transparent,punctualandcomplete.

Theimportanceplacedtocorporategovernance,independentauditingservicesandeffectiveinternalauditingpracticesarethemarkedindicationsofourdecisivenessonanti-corruptionandbribery.

CORPORATE GOVERNANCE

TheaimofCorporateGovernanceexercisedbyZorluGroupistogaintheconfidenceofespeciallyinvestorsandthecommunity.Ethical,transparentandaccountablemanagementisafundamentalprincipleofZorluGroup.ZorluGroupencouragesamanagementconceptwhichcreatesvaluetoallstakeholders,andactswiththeconsciousnessofvestedresponsibilities.Ourexecutives,bydiligentlyobservingdecision-makingmechanismsattentivetooursocial,environmentandeconomicresponsibilities,playanexemplaryroleinguidanceofouremployees.CorporateGovernanceisappliedalsointheGroupcompaniesnotquotedinstockexchange.


ThesharesofVestelElectronics,VestelWhiteGoodsandZorluEnergywithinZorluGroupareofferedtopublicandtransactedinISE.VestelElectronicshasaccessalsotoCorporateManagementIndexandLondonStockExchange.

Since2years,Vestel’simplementationsinthefieldofCorporateGovernanceareauditedbyanindependentfirm.Theinformationonaccreditationreports,relationwithshareholders,companyinformationpolicies,dutiesofboardofdirectorsandotherdetailsareaccessibleonthewebsitehttp://www.vestelyatirimciiliskileri.com/.Underthefeedbackprovided,continuousimprovementsareachievedonthesubjectofcorporategovernancepractices.In2008VestelElectronicsawardedthehighestgradeinthefieldofcorporategovernanceunder“stakeholders”title,anindicationofimportancegiventofurnishingofinformationtootherstakeholdersbesidestheinvestorswithinthescopeofcorporategovernancepractices.Throughregularlyupdatedinvestorrelationswebsite,allstakeholdersaresuppliedaccurateandcompleteinformation.InAnotherimportantpointconsideredincorporategovernancepracticesofZorlugroupistheobservationofrightsofsmall-scaleinvestors.

TheinternationalAccountabilityRatingresearchevaluatingethicalandsocialaccountabilityofcompaniesisrealizedforthefirsttimeinTurkeyin2007withthecontributionofAccountability,aBritishinitiativeon“creativethinking”and csrnetwork.InanotherresearchcarriedoutinRussia,SouthAmerica,HungaryandGreecesince2006,Fortune100Globalassessesandranksthelargestcompanieswithhighestturnoverfromtheaspectsoffulfillmentofsocial,economicandenvironmentalresponsibilitiesandtheirperformanceindisclosingthesepracticestothestakeholdersintransparency.In this research where more than 50 leading Turkish companies

were assessed, Vestel White Goods and Vestel Electronics ranked among the top 15 companies in 2008 and received an award.

INTERNAL AUDITING

ZorluGroupInternalAuditingDepartmentwasestablishedin2000tofunctionasanindependentauditingauthorityinassessmentoffinancial,administrativeandtechnicalactivitiesofallcompanies.AnInternalAuditingRegulationregulatingtheduties,limitsofauthorityandresponsibilitiesofInternalAuditingDepartmentispresentlyinforce.Incompanieswithsharesofferedtopublic,InternalAuditingDepartmentworksincooperationwithAuditingCommittee.The basic principles of Internal Auditing system are; objectivism, honesty, confidentiality, professional competency and independency.

Effectivenessandprofitabilityisassessedatreasonableintervalsintermsofstructuring,InternalAuditingDepartmentisresponsibleforreviewofGroupcompanies’effectivenessandprofitabilityintermsofstructuring,organizationaldevelopments,orientationandcontrolfunctionsatreasonableoccasionsandtoassesscomplianceofthesefunctionswiththemanagementdirectives,procedures,corporatepolicies,companytargetsandgeneralmanagementstandards.

ByperforminganinternalauditonCompanies’operationalandaccountingpractices,theaccuracyandreliabilityofthemeasurement,classificationandreportingproceduresarereviewed.AnotherfunctionofthisDepartmentistoreviewtheestablishedsystemsinordertoprovidecompliancewiththepolicies,procedures,plans,rulesandlawsthatmayhavesubstantialeffectonactivitiesandreportingpracticesandtosubmitcompliancerecommendations.Also,


reviewoffundamentalelementsforsafeguardingCompanyassets,searchanddeterminationofimproperorunlawfultransactionsareamongthemajortasksoftheInternalAuditingDepartment.Theauditingactivitycoversfinancialeffectsofrisks,occupationalhealth,environmentandcorruption.Thesubjectssuchashumanrightsabusesanddiscriminativeinhumantendenciesarecloselytrackedduringtheauditing.

Theauditactivityisplannedatthebeginningofeachyear.Inthemeetingsholdwitheachdepartment,arisktableiscreatedinthedirectionofthedataprovidedbythedepartmentheads.Riskmatrixisassessedonimpactandpotentialityaxis.

AllpersonnelemployedinInternalAuditingDepartmentperformtheirdutiesaccordingtointernationalstandards,anddotheirbesttoimprovetheirknowledgeandskillsbyobtainingvarioustitlecertificates.Atthesametime,theyaregrantedtheopportunitytopursuesuccessfulworld-wideimplementations.IntheInternalAuditingDepartment,thereare3personnelholdingCIA(CertifiedInternalAuditor)certificateissuedbyIIA(TheInstituteofInternalAuditors),and1personnelholdingCFE(CertifiedFraudExaminer)and1personnelCPA(CertifiedPublicAccountant)certificate.Thetargetistoensureacquisitionofatleastoneofthesecertificatesbyeverypersonnelemployedinthisdepartmentwithin3years.INFORMATION SAFETY

SafetyofavailableinformationisoneofthetopissuesdealtinprioritybyZorluGroup.InformationTechnologiesDepartmentisestablishedtotakemosteffectivemeasuresandtoensureutilizationofnewtechnologiesdevelopedbyZorluGroupinsafety.AllinformationbelongingtoZorluGroupanditsaffiliatesareusedovertheSAPsystem.SAPsystemprovides

transparencyandaccountabilityonthesubjectsofproduction,humanresources,CRM,logisticsandfinance.Also,inSAPsystem,hierarchicalaccessgrantsfurtherinformationsafety.Thetrainingsofferedtousersenableuseofthesysteminamoreeffectivemanner.

Inordertoprovideinformationsafety;•Databack-upimplementationsareadoptedinsafeareasforsafeguardingofinformationagainstnaturaldisasters.•Theinformationisrecordedondifferentmediaorlocation.•Entiregroupisequippedwithfire-wallersandvirusserversforsafeguardingofinformationagainstthevirusesandinformationtheft.•Allusersareinformedaboutthenewvirustypesandproblemsolvingmethods.•ThesafetydeficienciesarerecoveredbyupdatingcontinuouslyonWindowsupdatesystem.•NecessarymeasuresaretakentopreventaccesstotheinformationbyunauthorizedpersonsoutsidetheCompany.

Thebusinesspartnersassociatedwithinthefieldofinformationtechnologiesareliabletowarrantinformationsafety.

COMMUNITY

ZorluGroup,sincethedayofitsestablishment,istheleadingsupporterofsocialdevelopment.TheemergingcommunalparticipationsarethereflectionofZorluGroup’ssocialresponsibilityunderstanding.ZorluGroup,withthetendencytotransferasustainablefuturetoyounggeneration,launcheslong-termprojectsaspartofcommunalinvestmenttofuture.MehmetZorluFoundationisthemainplatformforperformanceofactivitiesinthisfield.


Mehmet Zorlu Foundation

Mehmet Zorlu Foundation-MehmetZorluEducation,Health,CultureandCharityFoundationisafamilyfoundationestablishedon25April1999inthenameofMehmetZorlu,whoisthefatherofChairmanAhmetZorluandCo-chairmanZekiZorlu.TheFoundation,underthelightofphilosophy“InvestinginYourFuture”,increasinglycontinuousitsactivitiesinthefieldsofeducation,cultureandsports.

Fundamental Principles of Mehmet Zorlu Foundation•TobestrictlyloyaltorulesandprinciplesofAtatürk,•Tobetransparentandhonest,•Toworknon-stopforenhancementofeducationofTurkishyounggenerationinthepathofAtatürk•TosafeguardinternationalvaluesopentooTurkishcultureandchanges.

Object of Mehmet Zorlu Foundation- TheobjectofMZFistosupportthesuccessfulyoungpeoplewhohardlycontinuoushis/hereducationduetofinancialdifficultiesandwhoareeligibletocontributetoTurkeyandtheworldonbehalfofmankind,aswellastheorganizationswhichwillhelpustogainsuchpeople.

Forrealizationofthisobjective,MZF:•Grantsgratuitousscholarshipstotheyoungpeoplelackoffinancialfacilities,inordertoenablethemtocontinueeducationandtraining.•Supportsopeningofnewschoolsandsimilareducationcenters.•Encouragesanddirectlypursuesthecontestsandprojectsinthefieldofeducation.•Participatesinsocialactivitiesinthefieldofeducation.

Activities of Mehmet Zorlu Foundation

Education-MehmetZorluFoundationoffersscholarshipstohundredsofstudentsineacheducationtermwithinthescopeofeducationencouragementactivities.Thescholars,whoareselectedaccordingtosuccessandrequirementcriteria,aregrantedscholarshipsforaperiodof9months,betweenOctober-June.

Foundationgrantedscholarshipsto:

-630studentsduring2004-2005educationterm,-650studentsduring2005-2006educationterm-670studentsduring2006-2007educationterm,-950studentsduring2007-2008educationterm,-1060studentsduring2008-2007educationterm.

TheFoundation,underthephilosophy“InvestinginYourFuture”,willinsistentlycontinueitscontributionsinthefieldofeducation.


MehmetZorluFoundation;inordertomitigatetheburdenrestingupontheeducationalinstitutionsonthesubjectofraisingpeoplebeneficialandprofitableforhis/herfamilyandcountry/nation,extensivelyoffersscholarshipsandopensnewschools.

MehmetZorluFoundationhasalwayssupportedandwillcontinuetosupportconstructionofeducationalinstitutionsfortransferofskillstoyounggeneration,whoareTurkey’sfuture.

BeforetheinitiationofactivitiesbyMehmetZorluGroup,ZorluGroup,bycompletingtheconstructionof;•1991-HacıMehmetZorluMulti-ProgramHighSchool-Babadağ/Denizli•1998-SaideZorluAnatoliaTradeTechHighSchool-Avcılar/Istanbulopenedtheseschoolsforeducation.

FollowingtheoperationoftheFoundation;•HakkıDereköylüAnatoliaFineArtsHighSchoolisconstructedinDenizlianddonatedtoMinistryofNationalEducation.(2003)•TheconstructionofSerdivanMehmetZorluElementarySchool/Adapazarıwasstartedin2004andtheschoolopenedduring2005-2006educationterm.On31December2005,theschoolisofficiallytransferredtoRegionalManagementofMinistryofEducation.

InSeptember2008,constructionof“İnliceAhmetNazifZorluElementarySchool”iscompletedandopenedforeducation.

Charities- VariousdonationsaremadebyMehmetZorluFoundationtomanyinstitutionsandcorporationsinvolvingineducation,cultureandsports.TheFoundationcontinuestograntdonationupondemand.

Culture- TheFoundationhasestablished“ZorluChildrenandYouthTheater”in2003.ThetheatergrouptravelsalloverTurkey,andperformsplaysandpuppetshowsespeciallytothechildrenindestitute.Uptoday,wereachedto60,000childreninTurkeywiththisactivity.

“ZorluChildrenandYouthTheater”,whichwasfirststartedbyMehmetZorluFoundationtoattractattentionandsympathyofemployees’children,lateronexpandeditsperformancesandintroducedthetheatertotenthousandsofchildren.Withinthescopeofthisproject,twoplaysareonstageinTheater’sSixthSeason,in2008-2009.

While“ZorluChildrenandYouthTheater”performing“CatandMouseKitchen”ononehand,ontheotherpreparestoaddresstheaudiencewith“BremenTownMusicians”.

“ZorluChildrenandYouthTheater”,willcontinuetoperformthe“CatandMouseKitchen”,whichwasfiststagedin2006-2007,intheprovincesnotyetreachedduringthecountry-widetourinthepreviousyears.Untilnow,thisplayisstaged81timesin34citiesandreachedto50,000peoplerepresentingaudience.“CatandMouseKitchen”willbeperformedin20citiesthisyearandisassumedtobehighlyappreciatedbychildren.“CatandMouseKitchen”play,initiallycreatedtoattractthechildrenandyoungpeople,especiallythechildrenofemployeesinZorluGroup,in2008-2009TheaterSeason,willbedisplayedinmanycities,includingMersin,Tarsus,İskenderun,Antakya,Kilis,Şanlıurfa,Viranşehir,Mardin,Batman,Diyarbakır,Ardahan,Kars,Ağrı,Iğdır,Van,Erzincan,Bayburt,Gümüşhane,GiresunandOrdu.


Thesecondplayplannedtobeperformedthisseasonis“BremenTownMusicians”,basedonthefamousfablewrittenbyGrimmBrothers.ThisplaywilltakestageinIstanbul,BursaandManisa.

Create Your Own Design

The“CreateYourOwnDesign””contestorganizedbyZorluTextileGrouptoprovideparticipationofyoungandskilleddesignersintextilesectorandtoencouragetheircreativethinkingcomprisestwocategoriesasquiltcoverdesignandproductdesign.Itisorientedtothestudentsintheuniversities,FineArtandEngineeringFaculties.

Everyyear,thestudentsrankingtopinthiscontestaregranted“MehmetZorluFoundationSpecialScholarshipAward”.

Sports- -Vestel,asareflectionofcorporateconsciousnessconcept,placesgreatimportancetohealthandsafetyofitsemployees,customersandneighboringinhabitants,andconsidersconservationofenvironmentandnaturalresourcesasanobligationagainstthefuturenextgenerations.

Vestelsuccessfullycarriesout“VestelStandsbyTurkishAthletics”projectsince2003asanexpansionofitssocialresponsibilities.ThisprojectsaimstopromotionofathletismbothinTurkeyandinternationalarenaandtoattracttheattentionofTurkey’syounggenerationtowardstheathletism.

Byvirtueofintegralsponsorshiparrangements,andsupplementaryprojects,thisprojectwillexpandtoincludeconsiderablepartofsociety.Theactivitiesplannedwithinthescopeoftheprojectareperformedinfivemaingroups:

-Individualsponsorships-Education-Studentathletismactivities-Competitionsponsorships-Information,Communication

Inthiscontext,besidestheindividualsportingandcoachingsponsorships,miscellaneousactivitiesarecarriedoutinallfieldsfromstudentathletismactivitiestodevelopmentofwebsitewww.vestelatletizm.comandpublicationofannualathletismstatisticsbook.

Thankstouninterruptedsupportrenderedwithinthescopeoftheproject,untilnow,Vestelhasprovidedsponsorshipfor26differentathletesand24differentcouches.TheathletessupportedbyVestelwontotally197medals,including87goldmedals,intheinternationaltournamentsandchampionships.Furthertotheseoutstandingachievementsinthefieldofathletism,inthetournamentswheremorethanoneathleteraceindifferentagecategories,theybeat131records.

Vestelhasaccomplishedmanyprojectsinthefieldofathletismsince2008.Inordertorecoverthedeficienciesincompetitioncapacityoftheathletesinallshortandmiddledistancesraces,whichisverypopularinTurkey,andimprovetheirperformance,VestelorganizedGrandPrixcompetitionascontributiontoTurkishathletism.Attheendof3-stageVestelGrandPrixcompetitionorganizedinMay2008inIstanbul,AnkaraandIzmirandparticipatedbyathletesfromalloverthecountry,theathleteswhogainedthebestscorearerewardedwithaprice.

Ontheotherhand,bylaunching“VestelRecordAward”,itisaimedtoencouragetheathletestoparticipateinnationalandinternationalcompetitionsbydemonstratingthephysicalperformanceshown


whilebeatingrecordinTurkey.Withinthescopeofthisproject,in2008,Vestelrewarded18athletesandcouchesbeatingrecordintheirfieldinTurkey.

Vestel,forthememoryofathleteCüneytKoryürekwhopassedawayduringacaraccident,hascontributedtopublicationofthebook“100metersofBrotherCüneyt”,abiographyproducedbyhisfellowfriends.

Inthewebsitewww.vestelatletizm.comwhichfunctionsasanapplicationsourceinathlethism,dailydevelopmentsinsportsandinterestinginformationabouttheathletesareregularlyfurnishedtothereaders.

Employee Willingness-Vestelisincludedinthe“CultureAnts”projectlaunchedbyCulturalAwarenessFoundationandPrivateSectorsVolunteers.In2007,and2008,fromspringtowinter,manyemployeesfromVestelhavevoluntarilyparticipatedinCultureAntsprojectswhichcreateagoodoccasionformeetingofemployeesworkinginprivatesectorandnon-governmentalorganizations.

Duringtheperiodbetweenspring-winter2008,anactivityorientedtochildrenatthestageofelementaryschoolisinitiatedundertheconcept“Istanbul:EuropeanCapitalofCulture”inordertoincreaseculturalsensitivenessandtocreateanurbanculture.InthequartersofIstanbuldemonstratinglowsocio-economiclevelandhighimmigrationlevel,morethan1,000studentsfrom7ElementarySchoolhavebenefitedfromthisproject.VestelCultureVolunteersbecamearolemodelforallthestudents.

Withinthescopeof“KOZA(Interim)Project”organizedbyYASED,EnergyGroupprovided8studentscomingfromSouth-EastAnatoliathefacilityofworking1monthasinterimunderthemoderatorshipoftheemployees.

Vestel Academy-Vestel,withthecooperationofBahçeşehirUniversity,studentsaregrantedtheopportunitytoapplyformasterdegreeinthefieldofvideotechnologiesandtoworkinVestelasengineerorasassistantprofessorinBahçeşehirUniversityfollowingthecompletionofpost-graduatetraining.

15studentswillbenefitfrompost-graduatetrainingwhichwilllast2years.5studentswillreceive100%scholarshipfromVesteland5studentsfromBahçeşehir,andremaining5studentwillbegranted60%scholarship.ByallowingparticipationofVesteltopmanagementandseniorengineersinthelectures,itisaimedtotransfertheknowledgeandexperienceacquiredinthesectortostudents.

Followingthecompletionoftheprogram,thestudentswillhavethechancetoworkfulltimeorparttimeinVestelorasassistantprofessorinBahçeşehirUniversity.Attheendoftheprogram,jobopportunitieswillbecreatedforthestudentsinUSA,EuropeandTurkey.SomeofthestudentsmaygotoUSAasresearchassistantwithinthescopeoftheprojectjointlydeveloped

ThesocialresponsibilitypracticesexercisedinotherGroupscompaniesaregenerallyaccomplishedundertheparasolMehmetZorluFoundation.


Osmaniye Social Responsibility Project- ZorluEnergyGroup,inthedirectionofitstargetsseeking

strengtheningofcommunicationwiththestakeholders

andundertakingofsocialresponsibilities,presently

worksonaproject-constructionofawindpowerplant

inOsmaniye-whichhighlightsimportanceofrenewable

energyinourcountry.Thispilotprojectwillcreatea

modelforotherinstitutionsintermsofadvantages

providedbywindpowerplantforthecommunity.

Therequirementofbeinginclosecontactwith

thelocalcitizensduringcourseofconstruction,

passingfarbeyondtheeffortsorientedtotransfer

ofinformation,leadsustoestablishreciprocaland

long-termcommunicationwiththesepeople.Inthis

context,inJune2008,ameetingisorganizedwith

theparticipationoflocalcitizens,localadministrators

andrelevantpublicinstitutionsandourstakeholders

tofurnishinformationaboutRESprojectinOsmaniye

andtodiscussitssocial,economicandenvironmental

effects.

Throughimplementationofdevelopmentprojects,it

isplannedtorecorddevelopmentsintheregionon

thesubjectofagriculture,improvementofpersonal

skills,energysolutionsetc.Withtheaimofstructuring

beneficialandsustainableprojectsmeetingcommunal

requirements,itistriedtodeterminetheneeds

andprioritiesofthelocalinhabitants.Atthefirst

stage,emphasizewillbegiventotheresearchesfor

determinationofprevailingconditionsandrequirements

inGökmustafa,SavranlıandKızlaçvillageslocatedat

BahçeandHasanbeylidistricts.

Followingthisresearchactivities,itisplannedto

holdanexclusivemeetingwiththeparticipationof

academicians,non-governmentalorganizations,and

localadministratorsandlocalcitizenstonegotiatethe

resultsandtoassesstheprojects.Finally,theprojects

jointlyselectedbythelocalcitizensshallbesupported

andputintoforcebyZorluEnergyGroup.

Itisprojectedtostartatleasttworuralprojectsin2009

uponsubmissionofresults.

ZorluEnergy’sfinaltargetistocontributetoeducation

ofyounggeneration,improvementoftechnicalskills

andtocreatejobopportunitytothelocalcitizensinthe

longrun.

Therearealsootherspecificprojectscarriedout

ondifferentaxistoraisepublicawarenessabout

environment.

•ForestationactivitiesjointlycarriedoutwithForestry

Directoratecoveringplantationofthreethousandtrees

onanareaof2hectares.

•Preparationofbooksforthechildrenbetweenthe

ages7-12furnishinginformationaboutimportanceof

renewableenergy,windenergyandturbines.These

bookswillbedistributedtotheelementaryschools

intheregionwiththepermissionofOsmaniye

Governorship.


Awards Won During the Reporting Period

• Zorlu Energy Gökçedağ Wind Power Plant-in May 2009

Gold Standard Award

• Zorlu Energy KAR-Management

Business and Economy Awards

• Zorlu Energy ICCI Organization and Consultancy Committee

Appreciation Award for 5 years support.

• Vestel White Goods Accountability- Ethical Accountability

2008 Success Award-Ranking for Turkey

• Vestel Electronics Accountability- Ethical Accountability

2008 Success Award-Ranking for Turkey


Legal Warning

GlobalCompactProgressReport(“Report”)isprepared

withinthescopeoftheUnitedNation’sGlobalCompact

signedon19December2007byZorluHolding

A.Ş.(“ZorluGroup”or“Zorlu”)Allinformationand

opinionsincludedinthisreportanddeemedincomplete

areprovidedbyZorluGroupandforthepurposeofthis

report,arenotrequiredtobeverifiedindependently.

Thisreportispreparedonlytofurnishinformationand

maynotconstituteabaseforanyinvestmentdecision.

Theinformationcontainedinthisreportmaynotbe

construedasanofferinvolvingsaleofZorluGroup

shares,orapartofofferoracallforasaletransaction,

orestablishmentofalegalrelationforpublicationofthe

report.

Alltheinformationandrelevantdocumentsare

deemedtobeaccurateatthepreparationstageofthis

reportanddisclosedingood-faithandbasedonreliable

sources.However,ZorluGroupwaivesanystatement,

representationandwarrantyrelatingtothisinformation.

Accordingly,neitherthecompanynorthedirectorsor

advisersoremployeesmaybeholdliableforanyloss

ordamagedirectlyorindirectlyencounteredbyany

personinconnectionwiththeinformationconveyed

withinthescopeofthisreport,orcommunication,or

anyotherdatabasedonthisinformation.

Communication

Address:ZorluPlaza34310Avcılarİstanbul

www.zorlu.com.tr

DesignedbyTayburnKurumsal

www.tayburnkurumsal.com

www.zorlu.com.tr

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