GRI Index

STANDARD DISCLOSURES PART I: Profile Disclosures

Profile Disclosure Disclosure Level of reporting Location of disclosure For partially reported disclosures, indicate the part not reported Reason for omission Explanation for the reason for omission
1. Strategy and Analysis
1.1 Statement from the most senior decision-maker of the organization. Fully CEO's Message      
1.2 Description of key impacts, risks, and opportunities. Fully Chairman's Message, CEO's Message      
2. Organizational Profile
2.1 Name of the organization. Fully Türkiye Finans Katılım Bankası A.Ş.      
2.2 Primary brands, products, and/or services. Fully For detailed information about TFKB's products and services, please visit www.turkiyefinans.com.tr, also see products and services table on page 29.      
2.3 Operational structure of the organization, including main divisions, operating companies, subsidiaries, and joint ventures. Fully Corporate Profile      
2.4 Location of organization's headquarters. Fully Yakacık Mevkii Adnan Kahveci Cad. No:139 34876, Kartal, Istanbul, Turkey      
2.5 Number of countries where the organization operates, and names of countries with either major operations or that are specifically relevant to the sustainability issues covered in the report. Fully Türkiye Finans holds offices in Turkey.      
2.6 Nature of ownership and legal form. Fully Türkiye Finans is incorporated under the laws of the Turkish Republic. Ownership structure as of 31 December 2013: 66.27% National Commercial Bank, 22.09% Boydak Group, 11.57% Ülker Group      
2.7 Markets served (including geographic breakdown, sectors served, and types of customers/beneficiaries). Fully The Bank serves its customers primarily in Turkey, throughout its 250 branches. The Bank has a variety of customer: individuals, SME's, large corporates, etc.      
2.8 Scale of the reporting organization. Fully Summary Financial Information. Also visit: http://www.turkiyefinans.com.tr/tr/hakkimizda/faaliyetraporlari/2013/en/m-1-6.html      
2.9 Significant changes during the reporting period regarding size, structure, or ownership. Fully There has not been any significant change during the reporting period.      
2.10 Awards received in the reporting period. Fully Awards      
3. Report Parameters
3.1 Reporting period (e.g., fiscal/calendar year) for information provided. Fully The full year 2013, from 01-01-2013 until 31-12-2013      
3.2 Date of most recent previous report (if any). Fully This is the first sustainability report of the Bank.      
3.3 Reporting cycle (annual, biennial, etc.) Fully Annual from 1 January to 31 December      
3.4 Contact point for questions regarding the report or its contents. Fully Mr. Kaan Demirkesen, Corporate Brand Asst. Vice President, T:0216 586 70 00 F:0216 452 54 94, kaan.demirkesen@turkiyefinans.com.tr;

Ms. Şebnem Öztürk Gença, Corporate Brand Senior Specialist, T:0216 586 70 00 F:0216 452 54 94, sebnem.ozturk@turkiyefinans.com.tr		      
Profile Disclosure Disclosure Level of reporting Location of disclosure For partially reported disclosures, indicate the part not reported Reason for omission Explanation for the reason for omission
3.5 Process for defining report content. Fully Türkiye Finans' Sustainability Report content is based on an assessment of materiality, considering legal and regulatory requirements (such as the Banking Law), a peer review, Türkiye Finans' sustainability strategy and risk assessment and information requests from stakeholders. Türkiye Finans used Tayburn's consultancy services to undertake the Materiality Analysis which was based on GRI's Guidance on Defining Report Content. The main sustainability issues have been gathered under six groups. Please see Dialogue with Stakeholders and Priorities for the Reporting Period, page 25. Findings of the prioritization analysis has been provided to the Bank's senior management for rewiev, and their feedback was obtained. Türkiye Finans's 2013 Sustainability Report integrates our financial, social and environmental information in one document as these are all relevant for our business operations.      
3.6 Boundary of the report (e.g., countries, divisions, subsidiaries, leased facilities, joint ventures, suppliers). See GRI Boundary Protocol for further guidance. Fully The content of this report is limited to Türkiye Finans' own activities in Turkey and does not cover the Bank's subsidiaries or parent companies.      
3.7 State any specific limitations on the scope or boundary of the report (see completeness principle for explanation of scope). Fully Please see 3.6      
3.8 Basis for reporting on joint ventures, subsidiaries, leased facilities, outsourced operations, and other entities that can significantly affect comparability from period to period and/or between organizations. Fully This report does not cover the Bank's subsidiaries.      
3.9 Data measurement techniques and the bases of calculations, including assumptions and techniques underlying estimations applied to the compilation of the Indicators and other information in the report. Explain any decisions not to apply, or to substantially diverge from, the GRI Indicator Protocols. Fully IFRS for financial data

GRI Level A reporting protocol; no diversions		      
3.10 Explanation of the effect of any re-statements of information provided in earlier reports, and the reasons for such re-statement (e.g.,mergers/acquisitions, change of base years/periods, nature of business, measurement methods). Fully Restatements, if any, are footnoted.      
3.11 Significant changes from previous reporting periods in the scope, boundary, or measurement methods applied in the report. Fully This is the first sustainability report of the Bank.      
3.12 Table identifying the location of the Standard Disclosures in the report. Fully GRI Content Index is an Appendix to our Sustainability Report.      
3.13 Policy and current practice with regard to seeking external assurance for the report. Fully Türkiye Finans strives to ensure full data assurance for all significant sustainability data reported. For details please see, About the Report.      
4. Governance, Commitments, and Engagement
4.1 Governance structure of the organization, including committees under the highest governance body responsible for specific tasks, such as setting strategy or organizational oversight. Fully For the Board of Directors please see: http://www.turkiyefinans.com.tr/tr/hakkimizda/faaliyetraporlari/2013/en/m-2-1.html

For committees please see: http://www.turkiyefinans.com.tr/tr/hakkimizda/faaliyetraporlari/2013/en/m-2-5.html		      
4.2 Indicate whether the Chair of the highest governance body is also an executive officer. Fully The Chairman is a non-executive member of the Board. .      
4.3 For organizations that have a unitary board structure, state the number of members of the highest governance body that are independent and/or non-executive members. Fully There are no independent members on the Board      
4.4 Mechanisms for shareholders and employees to provide recommendations or direction to the highest governance body. Fully Stakeholder feedbacks approved by Türkiye Finans Senior Management are directed to the Board of Directors by General Secretary of the Board.      
Profile Disclosure Disclosure Level of reporting Location of disclosure For partially reported disclosures, indicate the part not reported Reason for omission Explanation for the reason for omission
4.5 Linkage between compensation for members of the highest governance body, senior managers, and executives (including departure arrangements), and the organization's performance (including social and environmental performance). Fully The Bank uses a balanced evaluation of various corporate indicators to determine performance related compensation for all managers and senior executives. These measures are aligned with the strategy and the achievement of the Bank's business plan.      
4.6 Processes in place for the highest governance body to ensure conflicts of interest are avoided. Fully Türkiye Finans has procedures in place to help to avoid conflicts of interest at all levels of our business. All employees of the Bank are required to adhere to the Ethics Policy.      
4.7 Process for determining the qualifications and expertise of the members of the highest governance body for guiding the organization's strategy on economic, environmental, and social topics. Fully The qualifications and expertise of the Senior Management on economic, environmental and social topics are evaluated by the Board of Directors.      
4.8 Internally developed statements of mission or values, codes of conduct, and principles relevant to economic, environmental, and social performance and the status of their implementation. Fully For Vision, Mission and Corporate Values please visit: http://www.turkiyefinans.com.tr/tr/hakkimizda/faaliyetraporlari/2013/en/m-1-2.html

The Sustainability Strategy of Türkiye Finans

Corporate Social Responsibility (CSR) Policy

Both the Sustainability Strategy and the CSR Policy were fully implemented throughout the reporting period.		      
4.9 Procedures of the highest governance body for overseeing the organization's identification and management of economic, environmental, and social performance, including relevant risks and opportunities, and adherence or compliance with internationally agreed standards, codes of conduct, and principles. Fully Corporate Governance Structure      
4.10 Processes for evaluating the highest governance body's own performance, particularly with respect to economic, environmental, and social performance. Fully The shareholders evaluate the performance of Türkiye Finans Board of Directors and make the necessary arrangements in accordance with the Bank's policies and strategies.      
4.11 Explanation of whether and how the precautionary approach or principle is addressed by the organization. Fully Türkiye Finans' risk management function is responsible for development of risk policies and processes, including credit risk, and operational risks. These policies establish the framework for a variety of factors such as the acceptance of new clients, provision of credit and development of new products. These risk management policies are taken into account on an ongoing basis in everything that we do.      
4.12 Externally developed economic, environmental, and social charters, principles, or other initiatives to which the organization subscribes or endorses. Fully  Türkiye Finans is a member of The Participation Banks Association of Turkey (TKBB), and YASED - International Investors Association

Turkish Banking Law		      
4.13 Memberships in associations (such as industry associations) and/or national/international advocacy organizations in which the organization: * Has positions in governance bodies; * Participates in projects or committees; * Provides substantive funding beyond routine membership dues; or * Views membership as strategic. Fully We participate and support a number of external initiatives, including:

- The Participation Banks Association of Turkey (TKBB)

- YASED - International Investors Association		      
4.14 List of stakeholder groups engaged by the organization. Fully Customers, Employees, Shareholders, and the Community are the main stakeholders of Türkiye Finans. Stakeholders and Stakeholders Participation      
4.15 Basis for identification and selection of stakeholders with whom to engage. Fully Stakeholders and Stakeholders Participation      
4.16 Approaches to stakeholder engagement, including frequency of engagement by type and by stakeholder group. Fully Dialogue with Stakeholders and Priorities for the Reporting Period      
4.17 Key topics and concerns that have been raised through stakeholder engagement, and how the organization has responded to those key topics and concerns, including through its reporting. Fully Dialogue with Stakeholders and Priorities for the Reporting Period      

STANDARD DISCLOSURES PART II: Disclosures on Management Approach (DMAs)

FSSS DMAs Disclosure Level of reporting Location of disclosure For partially reported disclosures, indicate the part not reported Reason for omission Explanation for the reason for omission
DMA PS Disclosure on Management Approach PS
Aspects Product portfolio Fully Türkiye Finans has in place a range of policies to manage the impacts of its products and services. These also ensure that the Bank complies with its regulatory obligations as well as additional policies in relation to responsible banking practices, and various risks in lending.      
FS1 Policies with specific environmental and social components applied to business lines. Fully We Generate Value for our Customers      
FS2 Procedures for assessing and screening environmental and social risks in business lines. Fully Türkiye Finans has established procedures to ensure its lending decisions are guided by sound economical, social and environmental standards.      
FS3 Processes for monitoring clients’ implementation of and compliance with environmental and social requirements included in agreements or transactions. Fully Türkiye Finans totally complies with the laws and regulations currently in force in Turkey regarding the environmental and social requirements of its lending activities.      
FS4 Process(es) for improving staff competency to implement the environmental and social policies and procedures as applied to business lines. Fully Türkiye Finans engages in many training activities aiming to provide its staff with necessary information and to improve their competencies on risk categories.      
FS5 Interactions with clients/investees/business partners regarding environmental and social risks and opportunities. Fully Türkiye Finans interacts with its customers, investees and business partners regarding environmental and social risks in case of need.      
  Audits Fully To ensure our lending practices comply with our corporate policies, there are various checklists and filters that customers are assessed against. This is in scope for all credit audits and is targeted specifically to ensure that economical, environmental, and social matters have been appropriately addressed.      
Active ownership Fully The Bank assesses all new corporate and individual customer relationships for a variety of risks and in accordance with the criteria set out by the regulations in force in Turkey. Existing customer relationships are considered on an annual basis, or more frequently if necessary.      
DMA EC Disclosure on Management Approach EC
Aspects Economic performance Fully Türkiye Finans 2013 Annual Report http://www.turkiyefinans.com.tr/tr/hakkimizda/faaliyetraporlari/2013/en/m-1-15.html      
Market presence Fully Türkiye Finans 2013 Annual Report http://www.turkiyefinans.com.tr/tr/hakkimizda/faaliyetraporlari/2013/en/m-1-14.html      
Indirect economic impacts Fully Türkiye Finans 2013 Annual Report http://www.turkiyefinans.com.tr/tr/hakkimizda/faaliyetraporlari/2013/en/m-1-15.html      
DMA EN Disclosure on Management Approach EN
Aspects Materials Not     Not applicable We do not report this disclosure item, as it is not applicable to our business because Türkiye Finans is a financial service provider and do not produce any goods by using materials.
Energy Fully We Generate Value for the Environment      
Water Fully We Generate Value for the Environment      
Biodiversity Not     Not applicable We do not report this disclosure item, as it is not applicable to our business because Türkiye Finans does not have any operation which affects biodiversity.
Emissions, effluents and waste Fully We Generate Value for the Environment      
Products and services Fully We Generate Value for our Customers      
Compliance Fully We recognise the impotance of full compliance to laws and strive to comlpy in every aspect of our business.      
Transport Fully We Generate Value for the Environment      
Overall Fully We recognise that our impact on environment and society results from our own operations as well as our client business activities.      
FSSS DMAs Disclosure Level of reporting Location of disclosure For partially reported disclosures, indicate the part not reported Reason for omission Explanation for the reason for omission
DMA LA Disclosure on Management Approach LA
Aspects Employment Fully We Generate Value for our Employees      
Labor/management relations Fully We Generate Value for our Employees      
Occupational health and safety Fully We Generate Value for our Employees      
Training and education Fully We Generate Value for our Employees      
Diversity and equal opportunity Fully We Generate Value for our Employees      
DMA HR Disclosure on Management Approach HR
Aspects Investment and procurement practices Fully We Generate Value for our Employees      
Non-discrimination Fully There were not any incidents of discrimination in the Bank during the reporting period.      
Freedom of association and collective bargaining Not     Not applicable We do not report this disclosure item, as it is not applicable to our business because there is no any collective bargaining agreement in place in Türkiye Finans.
Child labor Fully Türkiye Finans does not tolerate the use of child labour in business. Additionally, companies which employ child labor will not be financed at all, whenever identified.      
Forced and compulsory labor Fully Türkiye Finans does not tolerate or support the use of forced or compulsory labour.      
Security practices Fully Türkiye Finans uses the services of private security service providers which fully comply with laws and regulations in place in Turkey.      
Indigenous rights Not     Not material We do not report this disclosure item, as it is not of material importance in our territory of operations.
DMA SO Disclosure on Management Approach SO
Aspects Community Fully Türkiye Finans supports the social development through various corporate social responsibility projects. We Generate Value for the Community.      
Corruption Fully Türkiye Finans does not tolerate bribery of or by any business partner, government agency or public authority and maintain honest and fair relationships with all its counterparties.      
Public policy Fully Türkiye Finans is not an active participant in the political and public policy making process.      
Anti-competitive behavior Fully Türkiye Finans maintains fair and free competition in accordance with Turkey’s competition laws.      
Compliance Fully Türkiye Finans aims to comply with all laws and regulations in force in Turkey.      
DMA PR Disclosure on Management Approach PR
Aspects Customer health and safety Not     Not applicable We do not report this disclosure item, as it is not applicable to our business because the Bank's products do not affect customers' health and safety.
Product and service labelling Not     Not applicable We do not report this disclosure item, as it is not applicable to our business because the Bank's products do not use labelling.
FS15 Policies for the fair design and sale of financial products and services. Fully We Generate Value for our Customers      
  Marketing communications Fully Corporate communication activities - An important dimension of stakeholder dialogue      
Customer privacy Fully We respect the privacy right of our customers and strive to fully comply with the laws which set the frame of customer privacy in our country.      
Compliance Fully Türkiye Finans aims to comply with all laws and regulations in force in Turkey.      

STANDARD DISCLOSURES PART III: Performance Indicators

Indicator Disclosure Level of reporting Location of disclosure For partially reported disclosures, indicate the part not reported Reason for omission Explanation for the reason for omission
Product and Service Impact
Product Portfolio
FS6 Percentage of the portfolio for business lines by specific region, size (e.g. micro/SME/large) and by sector. Fully As of year end 2013, Türkiye Finans’ SME loan portfolio has reached a total of 7,7 billion TL. On the other hand, the Bank has concluded 234.9 million TL worth of leasing transactions with the later group, as of the same date. Within the scope of the Entrepreneur Job Family program, the Bank extended TL 4.9 billion in cash loans (an increase of 65% YoY) and TL 2.6 billion (up by 35% YoY) in non-cash loans. For additional information on Türkiye Finans’ business portfolio please see http://www.turkiyefinans.com.tr/tr/hakkimizda/faaliyetraporlari/2013/en/m-1-15.html      
FS7 Monetary value of products and services designed to deliver a specific social benefit for each business line broken down by purpose. Fully Please see FS6.      
FS8 Monetary value of products and services designed to deliver a specific environmental benefit for each business line broken down by purpose. Fully Türkiye Finans is working with customers to address environmental opportunities and risks and support transition to a lower carbon future. Details of these products and services can be found at: Türkiye Finans and The Energy Sector      
Audit
FS9 Coverage and frequency of audits to assess implementation of environmental and social policies and risk assessment procedures. Fully Internal audit has a market focus over Türkiye Finans’ products and services. This includes specific products developed to address environmental and social risks.

During the reporting period Internal Audit has not raised any significant issues in this regard.		      
Active Ownership
FS10 Percentage and number of companies held in the institution’s portfolio with which the reporting organization has interacted on environmental or social issues. Fully Türkiye Finans assesses all new corporate customer relationships for a variety of risks and in accordance with the criteria set out by the regulations in force in Turkey. Social and environmental issues may be identified by an Türkiye Finans employee or as a result of concern raised by an external stakeholder. Regardless, we will work with our customers to manage any issues. During the reporting period there was any case which we interacted on environmental or social issues.      
FS11 Percentage of assets subject to positive and negative environmental or social screening. Fully During the reporting period no asset has been subject to positive or negative environmental or social screening.      
FS12 Voting polic(ies) applied to environmental or social issues for shares over which the reporting organization holds the right to vote shares or advises on voting. Fully During the reporting period, there was not any condition which required the Bank to develop voting policies for shares over which Türkiye Finans holds the right to vote or advises on voting for environmental or social issues.      
Economic
Economic Performance
EC1 Direct economic value generated and distributed, including revenues, operating costs, employee compensation, donations and other community investments, retained earnings, and payments to capital providers and governments. Fully Direct economic value produced and shared by Türkiye Finans in 2013      
EC2 Financial implications and other risks and opportunities for the organization’s activities due to climate change. Fully Türkiye Finans and the Energy Sector      
EC3 Coverage of the organization’s defined benefit plan obligations. Fully Direct economic value produced and shared by Türkiye Finans in 2013      
EC4 Significant financial assistance received from government. Fully We have not received any financial assistance from the Government in the reporting period.      
Market Presence
EC6 Policy, practices, and proportion of spending on locally-based suppliers at significant locations of operation. Fully Türkiye Finans’ selection of suppliers takes into consideration a range of factors with the aim of maximising commercial and operational value as well as the social and environmental impacts of its buying decisions. The Bank’s common practice is local sourcing.      
EC7 Procedures for local hiring and proportion of senior management hired from the local community at significant locations of operation. Fully Our recruitment procedures do not specifically require employees to be selected from operational locations. Türkiye Finans hires employees based on merit and appropriateness of their skill set for any advertised position.      
Profile Disclosure Disclosure Level of reporting Location of disclosure For partially reported disclosures, indicate the part not reported Reason for omission Explanation for the reason for omission
Indirect Economic Impacts
EC8 Development and impact of infrastructure investments and services provided primarily for public benefit through commercial, in-kind, or pro bono engagement. Fully For SMEs and Commercial, and Corporate Customers

Generating Value for the Community		      
EC9 Understanding and describing significant indirect economic impacts, including the extent of impacts. Fully The economic contributions Türkiye Finans makes to society are greater than financial profits. The Bank creates jobs, pays salaries and invest in the skills of its human resources. The Bank also pay taxes, support businesses in its supply chain and provide products that satisfy the needs of its customers.      
Environmental
Materials
EN1 Materials used by weight or volume. Not     Not material We do not report on this issue as the disclosure is not material to our business, because we are a financial service company.
EN2 Percentage of materials used that are recycled input materials. Not     Not material As above
Energy
EN3 Direct energy consumption by primary energy source. Fully We Generate Value for the Environment      
EN4 Indirect energy consumption by primary source. Fully We Generate Value for the Environment      
Water
EN8 Total water withdrawal by source. Fully We Generate Value for the Environment      
Biodiversity
EN11 Location and size of land owned, leased, managed in, or adjacent to, protected areas and areas of high biodiversity value outside protected areas. Not     Not material We do not report on this issue as the disclosure is not material to our business, because we do not own or lease any property in protected areas or areas of high biodiversity.
EN12 Description of significant impacts of activities, products, and services on biodiversity in protected areas and areas of high biodiversity value outside protected areas. Not     Not material We do not report on this issue as the disclosure is not material to our business, because we do not run any activity which may create any impact on protected areas or areas of high biodiversity.
Emissions, Effluents and Waste
EN16 Total direct and indirect greenhouse gas emissions by weight. Not     Not applicable This the first Sustainability Report of Türkiye Finans where the use of natural resources is disclosed. The Bank targets to calculate its direct and indirect greenhouse emissions and share the results with its stakeholders following the disclosure of its 2014 data.
EN17 Other relevant indirect greenhouse gas emissions by weight. Not     Not material We do not report on this issue as the disclosure is not material to our business, because we are not an industrial company.
EN19 Emissions of ozone-depleting substances by weight. Not     Not material We do not report on this issue as the disclosure is not material to our business, because our activities do not emit any ozone-depleting substances.
EN20 NOx, SOx, and other significant air emissions by type and weight. Not     Not material We do not report on this indicator as the disclosure is not material to our business because the Bank’s business activities/operations do not generate significant emissions of these substances.
Profile Disclosure Disclosure Level of reporting Location of disclosure For partially reported disclosures, indicate the part not reported Reason for omission Explanation for the reason for omission
EN21 Total water discharge by quality and destination. Not     Not material We do not report on this indicator as the disclosure is not material to our business because all water is discharged to public waste water treatment across our operations.
EN22 Total weight of waste by type and disposal method. Not     Not available Türkiye Finans intends to disclose total weight of waste in the next reporting cycle (2014).
EN23 Total number and volume of significant spills. Not     Not material Türkiye Finans’ business activities do not have a material risk of significant spills of hazardous substances.
Products and Services
EN26 Initiatives to mitigate environmental impacts of products and services, and extent of impact mitigation. Fully We Generate Value for our Customers      
EN27 Percentage of products sold and their packaging materials that are reclaimed by category. Not     Not material We do not report on this issue as the disclosure is not material to our business because the Bank’s products and services are not packaged.
Compliance
EN28 Monetary value of significant fines and total number of non-monetary sanctions for non-compliance with environmental laws and regulations. Fully There have been no fines or non-monetary sanction for non-compliance with environmental laws and regulations.      
Social: Labor Practices and Decent Work
Employment
LA1 Total workforce by employment type, employment contract, and region. Partially We Generate Value for our Employees Workforce by employment type, contract and region. Not applicable Türkiye Finans keeps record of total workforce by gender, by age, by seniority and by education level but not specifically by employment type, contract and region.
LA2 Total number and rate of employee turnover by age group, gender, and region. Partially We Generate Value for our Employees Employee turnover rate by age group, gender and region. Not applicable Türkiye Finans keeps record of employee turnover rate but not specifically by age group, gender and region.
Labor/Management Relations
LA4 Percentage of employees covered by collective bargaining agreements. Fully There is no any collective bargaining agreement in place in Türkiye Finans. Employees are hired on an individual basis under the Turkish Labor Law.      
LA5 Minimum notice period(s) regarding significant operational changes, including whether it is specified in collective agreements. Fully We take all necessary actions to avoid redundancies. Whenever restructuring and/or redeployment is unavoidable, we seek to minimize the impact on those who may be affected. The minimum notice period regarding significant operational changes is regulated by Turkish Labour Law.      
Occupational Health and Safety
LA7 Rates of injury, occupational diseases, lost days, and absenteeism, and number of work-related fatalities by region. Partially In the reporting period, there were not any work-related incidents of death or injury; and diseases. Duration of absenteeism is 35.269 days for employees. Türkiye Finans keeps record of the related statistics but not specifically by region. Not applicable Türkiye Finans keeps record of employee absenteeism but not specifically by region.
LA8 Education, training, counseling, prevention, and risk-control programs in place to assist workforce members, their families, or community members regarding serious diseases. Fully A workplace physician is employed at Türkiye Finans. In 2013, 835 personnel underwent regular checkups and 88 received flu shots while 732 were given eye checkups at a hospital covered by the bank’s health benefits package. Türkiye Finans also provided 1,299 employees with Workplace Occupational Health & Safety Training last year.      
Training and Education
LA10 Average hours of training per year per employee by employee category. Partially We Generate Value for our Employees Hours of training by employee category. Not applicable Türkiye Finans keeps record of average hours of training per employee, but not by employee category.
Profile Disclosure Disclosure Level of reporting Location of disclosure For partially reported disclosures, indicate the part not reported Reason for omission Explanation for the reason for omission
Diversity and Equal Opportunity
LA13 Composition of governance bodies and breakdown of employees per category according to gender, age group, minority group membership, and other indicators of diversity. Fully Türkiye Finans’ human resources structure - basic demographic data and trends

Please also visit the following links (Details of governance bodies)
For Board of Directors http://www.turkiyefinans.com.tr/tr/hakkimizda/faaliyetraporlari/2013/en/m-2-1.html
For Senior Management http://www.turkiyefinans.com.tr/tr/hakkimizda/faaliyetraporlari/2013/en/m-2-2.html
For Unit Managers within Internal Systems and Directors http://www.turkiyefinans.com.tr/tr/hakkimizda/faaliyetraporlari/2013/en/m-2-3.html		      
LA14 Ratio of basic salary of men to women by employee category. Fully As the salary system is completely based upon performance, there is not an application that tracks the difference between male and female employees’ salaries.      
Social: Human Rights
Investment and Procurement Practices
HR1 Percentage and total number of significant investment agreements that include human rights clauses or that have undergone human rights screening. Fully Türkiye Finans’ lending policies requires that corporate customers be assessed in relation to their activities that may involve environmental or social risk (including human rights). During the reporting period, there were no customers who were being investigated on account of these issues.      
HR2 Percentage of significant suppliers and contractors that have undergone screening on human rights and actions taken. Fully Türkiye Finans’ procurement practices requires that suppliers and contractors fully complies with laws and regulations in force in Turkey concerning human rights practices. In our knowledge during the reporting period, there were no suppliers or contractor who has been investigated on account of these issues.      
Non-Discrimination
HR4 Total number of incidents of discrimination and actions taken. Fully No incidents of discrimination reported.      
Freedom of Association and Collective Bargaining
HR5 Operations identified in which the right to exercise freedom of association and collective bargaining may be at significant risk, and actions taken to support these rights. Fully We respect the constitutionally-protected right of employees to be members of unions. During the reporting period there were no trade or labor union organizational activities at Türkiye Finans. During the reporting period, the Bank had no dealings with any stakeholder who, to the bank’s knowledge, was in violation of their employees’ union rights.      
Child Labor
HR6 Operations identified as having significant risk for incidents of child labor, and measures taken to contribute to the elimination of child labor. Fully No risk of child labour has been identified during the reporting period. We do not tolerate the use of child labour in our own business, customers and suppliers. Additionally, companies which employ child labor will not be financed at all, whenever identified.      
Forced and Compulsory Labor
HR7 Operations identified as having significant risk for incidents of forced or compulsory labor, and measures to contribute to the elimination of forced or compulsory labor. Fully No risk of forced or compulsory labour has been identified during the reporting period. We do not tolerate forced or compulsory labour in our own business, customers and suppliers. Additionally, companies which do so will not be financed at all, whenever identified.      
Social: Society
Community
SO1 Nature, scope, and effectiveness of any programs and practices that assess and manage the impacts of operations on communities, including entering, operating, and exiting. Fully Türkiye Finans carries out a complete feasibility study before entering and exiting in any branch location. The Bank’s aim is to develop a balanced approach in favor of all its stakeholders as per the findings of each analysis.      
FS13 Access points in low-populated or economically disadvantaged areas by type. Fully Türkiye Finans is a service provider with 250 branch office locations throughout Turkey. Among the cities that the Bank is present there are large metropolitan areas as well as smaller cities in various regions of the country.      
FS14 Initiatives to improve access to financial services for disadvantaged people. Fully We Generate Value for our Customers      
Corruption
SO2 Percentage and total number of business units analyzed for risks related to corruption. Fully As a part of the inspection programme, all units of the Bank were analyzed during the reporting period.      
Profile Disclosure Disclosure Level of reporting Location of disclosure For partially reported disclosures, indicate the part not reported Reason for omission Explanation for the reason for omission
SO3 Percentage of employees trained in organization’s anti-corruption policies and procedures. Fully In 2013, 6.483 employees of the Bank was trained in 88 various anti corruption, compliance, etc. training programs, and received a total of 181,50 hours of training.      
SO4 Actions taken in response to incidents of corruption. Fully No corruptive practices were encountered in 2013, so no corrective actions needed to be taken.      
Public Policy
SO5 Public policy positions and participation in public policy development and lobbying. Fully Türkiye Finans is not an active participant in the political and public policy making process. On the other hand the Bank, actively seeks to constructively shape its operating environment and to inform its business decisions by understanding the perspectives of the banking community’s representatives. The Bank is an active member of The Participation Banks Association of Turkey (TKBB).      
Compliance
SO8 Monetary value of significant fines and total number of non-monetary sanctions for non-compliance with laws and regulations. Fully There have been no fines for non-compliance with laws and regulations.      
Social: Product Responsibility
Customer Health and Safety
PR1 Life cycle stages in which health and safety impacts of products and services are assessed for improvement, and percentage of significant products and services categories subject to such procedures. Not     Not applicable Not applicable due to the nature of our business, because our products do not cause any health and safety impact.
Product and Service Labelling
PR3 Type of product and service information required by procedures, and percentage of significant products and services subject to such information requirements. Fully Türkiye Finans complies with laws and regulations relating to the disclosure of information about the products and services it provides. For example, the Bank is obliged to provide product disclaimer statements, terms and conditions and offer copies of legally binding documentation to consumers. The Bank also assists customers in comparing its products to peers’ products available in the market by providing objective, transparent and understandable information and consultancy.      
FS16 Initiatives to enhance financial literacy by type of beneficiary. Fully We Generate Value for our Customers      
Marketing Communications
PR6 Programs for adherence to laws, standards, and voluntary codes related to marketing communications, including advertising, promotion, and sponsorship. Fully The practices in relation to the marketing and promotion of the financial products are strictly governed by legislation. Türkiye Finans complies with laws and regulations relating to marketing and promotion of products and services.      
Compliance
PR9 Monetary value of significant fines for non-compliance with laws and regulations concerning the provision and use of products and services. Fully There have been no fines for non-compliance with laws and regulations concerning the provision and use of products and services.