SUSTAINABILITY REPORT 2023www.iso.org.tr SUSTAINABILITY REPORT 2023About the Report3 Message from the Chairman 4 About the Istanbul Chamber of Industry9 Our History10 ICI Milestones12 Vision, Mission and Values14 Management of the Chamber15 Assembly Presiditential Committee16 Board of Directors17 Organizational Structure18 Members20 Business Model22 2023 Developments27 Türkiye and the World in 202328 Istanbul Chamber of Industry in 202334 Sustainability in the Istanbul Chamber of Industry43 Sustainability Strategy44 Governance 45 Materiality Analysis46 Code of Ethics48 Quality Management48 Stakeholder Engagement and Communication Channels50 Memberships and Collaborations52 Affiliates and Subsidiaries52 Values Created by the Istanbul Chamber of Industry55 Values Created for Members56 Values Created for Employees88 Values Created for Environment92 Values Created for Society94 Sustainability Performance of Istanbul Chamber of Industry103 Environmental Performance104 Social Performance 105 GRI Content Index111 Contact123 TABLE OF CONTENTS Istanbul Chamber of Industry Sustainability Report 2023About the Report As the Istanbul Chamber of Industry (ICI), we carry out our work with the aim of increasing the production capability of our industry and contributing to the national economy. In line with this goal, we adopt a “sustainable manufacturing” approach and place sustainability among our most important focus areas. We would like to present our third sustainability report, ICI Sustainability Report 2023, in which we report our efforts in this context, for the information of our stakeholders. The reporting period of ICI sustainability reports is annual and the information in this report covers our activities between January 1 and December 31, 2023. The report includes the environmental, social, and economic impacts of our activities as well as our objectives. Unless stated otherwise, the information and data provided in the report cover the operations of the Istanbul Chamber of Industry as well as its head office, Odakule, where these operations are carried out, two branches (Yenibosna, Ümraniye), and two service units (Tuzla, Hadımköy). This report has been prepared in accordance with the globally recognized GRI Standards 2021. The report has also benefited from the guidance of the United Nations Sustainable Development Goals (SDG). The sustainability report was printed in limited numbers in order to minimize its environmental impact. You may access a digital version of the report at www.iso.org.tr/corporate/ici-sustainability-reports . You may contact us for all questions, comments, and suggestions about the report and our sustainability operations at surdurulebilirlik@iso.org.tr. GRI 2-1, GRI 2-2, GRI 2-3Message from the Chairman Erdal Bahçıvan Istanbul Chamber of Industry Chairman Esteemed Stakeholders, As we step into the second century of our Republic following its 100th anniversary, the progress and achievements of our country’s industry are a source of great pride for our nation, strengthening our confidence in the future and fueling our commitment to continued development. Since the foundation of the Republic, the vision for economic growth has transformed our economy from a nation that joined the industrial revolution late and was weakened by years of conflict into one where industry and services now lead the way.This transformation, achieved through the state’s focus on industrialization and the dedication of our industrialists, has enhanced our global competitiveness by equipping our industry with modern technology and fostering innovation. As the Istanbul Chamber of Industry, we have been diversifying our activities to support the enhancement of the capacity of our business world in the global value chain in order to carry these efforts forward since our establishment in 1952. In this context, we closely follow developments in the field of sustainability, which has now become a criterion for global trade, and we carry out activities within the framework of our “sustainable manufacturing” approach. One of the most important developments in global trade that closely concerns our country’s industry and needs to be monitored is the European Green Deal (EGD). The transition period of the European Union’s (EU) Carbon Border Adjustment Mechanism (CBAM) under the EGD, which addresses green transition from a holistic perspective and makes regulations in many areas, started on October 1, 2023. After the transition period, which initially covers the iron and steel, aluminum, cement, fertilizer, electricity and hydrogen sectors and is limited to the reporting obligation, The transition period of the European Union’s (EU) Carbon Border Adjustment Mechanism (CBAM) under the EGD, which addresses green transition from a holistic perspective and makes regulations in many areas, started on October 1, 2023. GRI 2-22 4the actual implementation period will begin in 2026 when the financial obligations will come into effect. In this context, when we take into account that the CBAM will have direct and indirect economic impacts especially on the EU’s trading partners, it is understood that it will be a critical process for our country. However, with the EGD’s regulations on the transition to a sustainable and circular economy, an understanding that takes into account environmental and social impacts in the supply and value chain is becoming more widespread. Criteria for products to be long-lasting, easily repairable and recyclable increase the importance of raw material and technology selection. In this context, it is becoming a necessity for our industry to become greener, more circular and more digital in order to be globally competitive. At this point, while clean technology investments are gaining importance, the diversity of finance facilities required to cover the investment cost of transformation is also increasing. In this context, in line with the 2053 Net Zero Emission target of Türkiye, which became a party to the Paris Agreement in 2021, it is essential to accelerate the work on legislative infrastructure, taxonomy, calculation, verification and reporting, risk management and data generation, especially for the financing of green transition, in order to attract international financial resources to the Turkish economy. We attach great importance to the efforts to publish the Climate Law, which will provide a legal basis for Türkiye’s green transformation-oriented efforts. In addition, the implementation of the National Emissions Trading System, which is currently underway, will be a tool for achieving emission reduction targets and will create an important resource to support green transformation investments. As ICI, we believe that sustainability approach with its economic, social and environmental dimensions should be internalized and handled as a part of manufacturing processes, and we focus on sustainability in all our activities from vocational training to R&D and technology studies, from energy to foreign trade, and we continue our work without slowing down. In this context, we recently included the theme of Resilience of Industry as the sixth focus area in our sustainability efforts, which we launched in 2021 in five thematic areas: Climate Change and Sustainable Industry, Circular Economy, Future of Work, Safe Working Environment and Sustainable Finance. We are also working in the areas of “Sustainability-Oriented Innovation” and “Digital Transformation”, which are cross- cutting elements. We continue to regularly share our publications such as “ICI Green Blog” and “ICI Green Bulletin” to ensure that all our stakeholders GRI 2-22 5adopt the sustainability approach with its economic, social and environmental dimensions and obtain up-to-date information. While we continued to help our members take action in the green transition process with our services such as “Corporate Carbon Footprint Consultancy” and “Energy Desk”, we also increased our supportive activities for the CBAM transition period. In this context, we launched the “Guidelines for the Implementation of the Carbon Border Adjustment Mechanism, which aims to find solutions to the reporting obligations imposed by the CBAM in the “Aluminum” and “Iron-Steel” sectors and the implementation difficulties encountered in this process. In the light of these reports prepared with the support of our ICI Sectoral Committees and with the contributions of our Ministry of Trade, we provide intensive information with our sector-specific trainings. Within the framework of the importance of water resources for sustainable industry, we also carried out studies on water and wastewater management in 2023. In 2024, we shared with the public the “Climate Change and Water Management: Industry Sector Report” prepared by academics from Istanbul Technical University following various meetings and workshops with relevant parties. In collaboration with Ipsos Araştırma ve Danışmanlık Şirketi A.Ş. (Ipsos), we conducted the “ICI Research on Sustainability Trends in Industry”, which we started working on in 2023 to understand the current situation and approaches of industrial organizations in Türkiye regarding sustainability. The findings of the survey, which was conducted for the first time in Türkiye only for the industry as a whole, will guide the ICI’s future actions in the field of sustainability. Recognizing that solidarity with global stakeholders is of vital importance alongside national efforts, the United Nations (UN) Framework Convention on Climate Change, the most important global platform for sustainability and combating climate change, was signed on the 28th anniversary of the United Nations Framework Convention on Climate Change. We attended the Conference of the Parties (COP28). As ICI, we contributed to the COP28 side event program coordinated by the Ministry of Environment, Urbanization and Climate Change and held the panel “Green Transition and SMEs in the Era of Sustainable Manufacturing”. The key role of SMEs in the green transition was underlined in our panel, where senior executives from OECD and CDP, as well as representatives of companies with successful practices in the field of sustainability, were guests. While the importance of technology-oriented manufacturing is increasing within the framework of the manufacturing approach of our age, “green and digital transition”, which is defined as “twin transition”, is becoming a necessity in order to be globally competitive. In this context, as ICI, we continued our activities within the scope of our MIND4MACHINES project, which will enable SMEs to develop digital technologies, as well as our digital transition-oriented activities in 2023. In addition, with our The Future of Work in Manufacturing Industry: Closing the Skills and Gender Gap, ManuFoW project, which was launched in 2023, trainings are provided to relevant target groups in six technology areas that will enable them to improve their existing skills in the manufacturing sector and gain new competencies that they do not have. Message from the Chairman GRI 2-22 6 ICI Sustainability Report 2023 Global values in sustainability, particularly the United Nations Sustainable Development Goals (SDG), which aim to achieve a more just and livable future for all by addressing global challenges, are our most important guides in planning our activities. Therefore, we adopt the approach of “leaving no one behind” and work for an equal, fair, accessible and inclusive transformation. In this process, we care about working with young people and building a better future for them together. With this understanding, our Vocational Education Cooperation Project (ICI MEIP), which we carry out with the Ministry of National Education (MoNE), where we set out with the goal of “Qualified School, Qualified Graduate, Qualified Employment” and try to make being a vocational high school proud and prestigious, has become an exemplary practice throughout Türkiye with its unique model. In cooperation with the Ministry of National Education, we organized the Istanbul Vocational Education Summit, which included workshops on the steps taken within the scope of ICI MEIP and developments in the field of vocational education. Unfortunately, 2023, the year in which we accelerated our efforts to serve our industry with all these activities, witnessed a disaster for our country that will never be forgotten throughout history. On February 6, we experienced the Kahramanmaraş-based earthquakes that affected 11 provinces. Every region, province and town in Türkiye rushed to help in a spirit of mobilization. All institutions acted with great responsibility and showed an important example of solidarity in healing the wounds. As ICI, we focused on shelter, which is the most fundamental problem of the people living in the region as a result of the devastation caused by the earthquake, and took action to realize the “ICI Living City” with 1,000 containers in the Antakya district center with the guidance of the Regional Governorship. After the earthquake, we established the ICI Disaster Management Department in May 2023 and immediately started working to protect our industrial facilities against the expected Istanbul earthquake and included the theme of “Resilience of Industry” as the sixth focus area of our sustainability efforts. In the coming period, we will continue to work with the awareness of our social and environmental responsibilities and our determination to be a pioneer in the field of sustainability, taking into account the national and international interests of our country. By collaborating with competent institutions and organizations from different sectors, we aim to increase our in-house capacity and improve the services we offer to our members in line with their needs. As the Istanbul Chamber of Industry, we are pleased to share our third sustainability report with the public, which includes our activities we carried out in 2023 with the understanding of “The Name of Transformation: Sustainable Manufacturing”, and I would like to take this opportunity to thank all our stakeholders who supported us in our work. Erdal Bahçıvan Istanbul Chamber of Industry Chairman GRI 2-22 7Next >