SUSTAINABILITY REPORT
Transcription
SUSTAINABILITY REPORT
20 1 0 2 11 SUSTAINABILITY REPORT 20 1 0 2 11 SUSTAINABILITY REPORT Contents About Us About This Report Messages of Executives Business Structure Company Overview Milteks Products, Customers & Suppliers Code of Conduct 1 2 4 5 10 14 Financial Performance Financial Awards Financial Responsibilitiies Government Support, Local Purchasing 16 18 19 Value for Human Life Business And Labor Practises Employment Data Demographic Profile of Employees The Project on SHREC Practice and Content Feedback and Evaluation 22 23 24 28 29 30 Sustainibility Management System Lean Electronic Product 32 33 34 Community Communication Channels Management Dialogue Stakeholders Questionaries Supply Chain Our Material and Service Providers Employee Dialogue Audit Levels Social Activity with Employees Social Investments Unicef 37 38 39 43 45 46 47 48 50 51 Environmental Responsibilities Environmental Policy Water Turbine Sustainability Strategy Sensitivity To Ecological Environment Waste Management Eco -Friendly Approach Seed to Sapling GRI Application Level Grid GRI INDEX 52 53 56 59 63 64 66 67 68 About This Report Milteks Textile is a textile company with three apparel factories in Turkey and Georgia. Our report relates to making the apparel’s subsidiaries within the Milteks group. The reporting period is from January 2010 to December 2011 and the previous report was issued in April 2010. Milteks’s second sustainability report contents are developed in accordance with the GRI G3 Guidelines and complied with the requirements of “C” Plus Application Level. This report’s intended audience includes a broad range of our stakeholders. Stakeholders are individuals or groups who have the ability to influence, may have an interest in, or may be affected by a company’s operations. Our main stakeholders include our employees, customers, suppliers and contractors, shareholders, non-governmental organizations, and local communities. We report on biannual basis which helps our management to monitor the group’s performance in a systematic manner, to analyze our current position, to anticipate our goals and to set future targets. The report includes social, environmental and economic performance data for all facilities, business units and subsidiaries that are under the operational and financial control of the Milteks Group. All financial figures are reported in Euro (€) unless otherwise noted. Collection of data has been coordinated by Milteks Marketing and Project development Manager and the Deputy General Manager. This Report have been conceptualized, designed by Marketing and Project development manager with the technical support of Deputy General Manager. During the period, concerning to headquarter office had moved to our new building in Istanbul and second factory in Ajara/Georgia has been established for Production. Apart from this, there were no significant changes regarding size, structure, or ownership during the reporting period. What has not changed is also our commitment to sustainability. We are committed to an open transparent dialogue with all our stakeholders to harness all ideas and suggestions to improve our sustainability performance. We also look forward to receiving your feedback on this report at: Sukran.bagcier@milteks.com.tr 1 Statement from Chairman Dear ar Valued Stakeholder The first GRI sustainability training programme in textile sector led by Puma was held in 2009 by Milteks. That two-day programme showed that sustainability is not only limited to economical sustainability, but also pointed to the necessity of fulfilling our responsibilities for environment and society by means of scientific data. We realized the value of those intuative acts done by religious, social or cultural orientation. In order to provide a cleaner environment for future generations, we have an environmental approach in our investments other than economic factors. We have focused on new investment fields that are emerging with the help of consciousness of the society due to development of social and environmental factors Recycling of production wastes, tools and equipment that saves electricity, fuel saving and low-emission vehicles may be one of those new investment projects. Developing strategies up to becoming-conscious society’s needs, these investments may turn into real “opportunities”. Through our customers, we have began to realize that in the future the awareness of consumers will increase and the good price and quality will not be enough in the future. Our customers are now interested in sustainable raw materials, recycled polyester, organic cotton and use of African cotton as a social responsibility project. Brands began to give more importance to feelings and demands of the society in order to be a sustainable and reliable brand. We are aware of the fact that our quality and prices will not be enough for a sustainable production. Therefore, we take care to have more social and environmentalist approach in our investments. During the Project of our new facility, our priority was avoiding environmental impacts. According to the calculations 30% of energy saved. These practices turn into new opportunities; lower prices, bigger amounts, new customers. “Lean Training” we started in 2009 is still continuing both in our central building and factories, in order to improve productivity. Providing qualified employees to the industry is one of our principles. Milteks Management attach importance to training of workers; 80% of our workers started their careers in our companies. We see that management staff have always worked as tutors and our factories in Ordu, Fatsa and Georgia, Bobokvati-Batumi have served 2 like as industrial schools. For our employees, Career at Milteks is a long journey with an ever-rising successful team. We are aware of the fact that a healthy and quality living starts with education. As Milteks family, we support primarily medical students giving scholarship through the agency of Support for Modern Life Association. Supported by family elders and sponsored by Milteks, in 2012 educational year we present our project “Abdullah Bilgingulluoglu Anatolian Agricultural Vocational High School” in Seymen Village, Istanbul-Silivri, to children whom we entrust our future by the support of Ministry of Education. We supported the UNICEF “Vitalizing Presents” Project in order to enable world children shape our world’s future as healthy generations. Our customers, manufacturers and suppliers contribute a lot to these ever-growing values. We appreciate our manufacturers and suppliers always supporting us in competitiveness and sharing their experiences in tough times. Thank you for your contribution to our report with your feedback and sharing your thoughts with us. Best Regards, Kemal Bilgingulluoglu Chairman of the Board Statement from Member of Board Dear Valued Stakeholder Ever-growing and gradually developing, textile has been a significant sector for Turkey’s economy throughout the past 30 years. Even though Far East manufacturers entered into market with cheap labor and low costs and caused a recession in Turkey, this situation could not prevent the development in the sector. As other manufacturers, sports clothing manufacturers also moved their production lines to the neighboring countries where labor is cheaper, and turned into products that can be produced in a shorter time with a higher added value. As Milteks Group, we aimed to reach a wide range of production and started to found an appropriate structuring for this strategy towards the end of 1999. Our aim was to meet all orders of our customers; cheap, expensive, long-medium-short term orders. During our first 5 years, we dealt with installation of infrastructure. After 2005 we accelerated investment research. We opened a clothing factory in Fatsa, Ordu in 2007 and Kobuleti, Georgia in 2008. In 2011, we opened the second factory in Batumi, Georgia and we aim to open our third factory in this region on the second quarter of 2012. Our investments on developing regions allowed us to move up our financial success as well. We established International Investor Association in order to support foreign investors in this region. This associaton is taking the role as a consultant between the Georgian government and the foreign investors in sorting out the cases, therefore improving their releations.. As a board member of ICC (International Chamber of Commerce in Georgia), we continue our practices. Sustainability is a significant issue that we realized, price and quality are no longer enough for consumers, they look over the values you create and your impacts on environment. We know that, you can be successful in business life as long as you give support to society’s economic, social and environmental problems and find solutions to such problems. We pay attention to cultures and customs and legal regulations of countries we made investments. Therefore, we are trying to have an ecofriendly and social approach while investing. As a result of this awareness and research we made, we bought the inactive micro-hydroelectric plant located on the creek next to our Kobuleti factory in Georgia. Turbine is renewed, inside and outside of the building is restored. Micro-hydroelectric plant is opened by Adjara Head of Government and the electricity produced is connected to national power grid in September 2011. By this way, we started producing our own electricity for our textile production as a sustainable energy source. In our new factory established in Georgia, we used radiant heating with natural gas. Compared to radiator heating system, we save 50% fuel and emit less CO2. We appreciate the support of Head of Autonomous Republic of Adjara, Georgia. Best Regards, Cemal Bilgingulluoglu Member of the Board General Manager / Ajara Textile 3 Business Structure Milteks was founded by family members in 1984 as a small enterprise in textile and readymade in 1984. While producing sportswear and team jersey under its own brand CESEKA at the beginning, Milteks became Turkey’s biggest poly tricot brush importer and poly tricot tracksuit manufacturer in 1990’s. During this period, while making a breakthrough in production, Milteks accelerated investments in textile. By the year 1992, Milteks started working with international sports brands such as Lotto Sport, TFG Group UK, KL Rupert and Taylor Bowls and still continues business relations with most of these brands. In 1997, Milteks started working with Puma and improved its relations gradually. Milteks Group is actively in other sectors but report have not been included. Milteks Textile Industry and Trade CO. is a third generation family- Companies mentioned as Milteks Group in this report are: MILTEKS Textile (Istanbul-Turkey) CESEKA Textile (Ordu-Turkey) AJARA Textile ( Adjara,Georgia) run company located centrally in Beylikduzu, Istanbul. Milteks Textile stopped the production and marketing its own brand in the late 1990’s. As from those years, Milteks focused on production of sportswear brands’ orders. After sample and development stages, the entire production is based on pre-defined and planned customer orders. Including orders, marketing, R&D, Developing fabric and accessories, all stages of production is coordinated and directed by Milteks departments in Milteks Textile central building. Milteks supplies all the fabrics and accessories used in production from its partner suppliers. According to the production organization, all operations prior to sewing are finished in central building Beylikduzu, Istanbul, sewing and following processes are completed in Ceseka Textile located in Fatsa, Ordu and Ajara Textile located in Adjara, Georgia. For processing shortterm orders, standardized and customer-approved subcontractors are available in Istanbul. 99% Milteks Textile exports 99% of its production. Chairman and General Manager is at Milteks central building, Ajara Textile and Ceseka Textile are directed by Deputy General Managers dependent on General Manager. Partnership Structure Milteks Textile is a family-owned company formed by partnership of specific proportions of 7 people. Partnership structure varies slightly in each of the group companies because of management attitude. Percentage of partnership is parallel, but differs in each company. Share proportions are roughly saved in companies established by new investments. Chairman and General Managers of group companies are family members. Infrastructure studies still continue in order to have a longlasting business structure. 4 Partnership Structure Ratio Abdullah Bilgingulluoglu Kemal Bilgingulluoglu Cemal Bilgingulluoglu Aysel Bilgingulluoglu Other partners 26,00 26,36 23,87 22,00 3,27 Milteks-CesekaAjara Workflow Sewing Final Approval Ironing Merchandising Planning PrinƟng Crea CreaƟng paƩern Cuƫng ng Accessories Fabric Packaging i kd B eyl üzü ANB - İ ST UL Fa OR tsa- TURKEY DU Quality Control UM BAT GEORGIA 800 KM 1300 KM 5 0 1 20 Milteks Textile ISO 9001 ISO 9001 Quality assurance system. This generic management system standard assures the quality of an organisation’s management system. For Milteks this impacts the continuous improvement of product quality and increase of customer orientation. During the development processes of the products, different alternatives are created and customer’s ideas on the model are turned into designs, the outcome is discussed with technical team. Thus, we produce designs that correspond to customer demands and suitable for production. Milteks Team is directive for customer’s designs with their great experience on fabric, accessories and styles. Throughout the production processes, the problems are solved in cooperation with customer’s technical team, developing new methods improving the quality without affecting the design. New developments and technologies on fabric, accessories and production materials and new production methods are always searched, and shared by our customers. i s aw ard e Chairman of the Board Ass. General Manager Planning Ass. General Manager ProduĐƟon Manager Merchandising Team MarkeƟŶg and Project Development Financial CollecƟon Human Resources Cuƫng InformĂƟon and PrinƟŶŐ Import&Export 6 Repair&Service Quality Management Sewing Laboratory R&D MA as R PLIE P U S ” R E L ROPE A P “AP 010 EU of 2 S TEK MIL Our Companies Certified by PU d by . LogŝƐƟĐ MILTEKS TEXTILE 1 1 20 yP ed b UM A as LIER P P U EL S MEA” R A “APP 2011 EE of Si TEK MIL s aw ard APP AWARD WINNERS 2011 Supplier of the Year 2011 EEMEA MILTEKS From forecast to order processing, every stage is directed by Planning Department. Production capacity is controlled regularly and loading dates are scheduled according to customer demands and conformity of production. Following the order confirmation, fabrics and accessories needed are calculated and ordered from suppliers. Fabrics and accessories are tested according to brand’s standards and cut after the approval. Markers are produced electronically and cut by automatic cutters. Panel sublimation printing and transfer printing after cutting are carried out by printing department. Press calibration is done regularly and latest version press is used. Embroidery, pigment print and allover printing are applied by Milteks partner subcontractors that are controlled and defined according to S.A.F.E Standards. Those semi-finished products are classified and made ready to be sewed before being shipped to the sewing factories. After shipment, samples are regularly sent to Milteks to be controlled in every stage of sewing and approved by Quality Assurance Department. Quality Assurance Departments of factories are trained and inspected by Milteks Quality Assurance Department authorities every month. Video conferencing system is installed in both factories in order to find a solution to instant quality problems. Our Companies Certified by OHSAS 18001 OHSAS 18001 Occupational Health and Safety Management System. This generic management system standard assures the continuous improvement of Occupational Health and Safety performance. It impacts our occupational safety, workplace conditions, sanitary facilities and risk management. ISO 14001 ISO 14001 Environment Management System. This generic management system standard assures environmental management. It continues to reduce Milteks’s environmental impact on the entire production process. 7 Ajara Textile Ajara Textile is established in Autonomous Republic of Adjara in Georgia, near Batumi, in the village of Bobokvati towards the end of 2008. The factory building was originally a tea factory founded by Russian administration in 1927. With a faithful renovation to the original, the building is converted into a quality, healthy production and living area. The renovation works started in June, 2008 and completed in 6 months. Renovation of the building is very close to the original. Small changes have been made suitable for textile and apparel operations. Static project of the building is analyzed and some of the columns were strengthened. Some of the walls are replaced with concrete curtain walls. Instead of changing the column structure of the building which is not suitable for textile and apparel standards, production line layout is re-designed according to those column distances. Compared to a standard factory building’s costs, Ajara Textile Building was restored at a higher price and turned into a visually beautiful and compatible building. Sewing and other processes of relatively long-term orders with big quantities and low-priced orders are carried out in Ajara Textile Factory. Semi-finished products and accessories imported in accordance with outward processing regulation from Milteks-Beylikduzu are sorted and made ready for sewing as done in Ceseka. In this company, phases of production are same with Ceseka. Only loading qualities differ from Ceseka in some ways, due to the customs legislations. Since Milteks-based management is not possible in Ajara Textile, a new structure is created suitable for country. General Manager of the company is a Board Member of Milteks. Except for the Administrative and Production Deputy General Managers and a few senior executives, all managers have been recruited from local community. Revising the careers considering the successful performance of local managers, we are planning to recruit our senior executives from local community as well. The biggest problem on executive recruitment is language. There are not many qualified employees who speak Turkish in this region. It is not possible to find a senior executive who speaks a foreign language. There 8 Georgian and 3 Turkish executives who can speak Georgian language and Turkish in the factory. 8 Member of the Board- General Manager ProduĐƟon Manager Quality Mangement Ass. to General Manager . Planning Process EdžĞĐƵƟve LogiƐƟcs ...Quality Control ... Account IT Human Resources Care&Repair Service Ceseka Textile Ceseka is established in a short period of 2,5 months in Fatsa, Ordu towards the end of 2007. As a result of research for lowestcost production in Turkey, Fatsa is chosen for investment due to its proximity and being appropriate for promotion law. Ceseka Textile is established on an 8000m² area within Organized Industrial Zone. The factory working in a 2700 m² closed area at the time of establishment is re-designed in 2010 and reached to 3600 m2 of closed area. Business Structure Ceseka worked with average of 270 employees in the years 2008 and 2009,now is working with 75% of capacity and has approximately 440 employees . In 2009, 75% of employees in Organized Industrial Zone worked for Ceseka. However, due to a few clothing factories opened in the area, the number of employees is doubled and percentage of Ceseka employees is decreased to 35%. Ceseka served as a technical school in this area and provided vocational training to employees during 2008 and 2009. It is estimated that 75% of employees of other clothing factories within the area, had worked in Ceseka. (Assuming that employees quit Ceseka are working in other factories now) There is shortage of staff. So, the routes of shuttles are revised and reached to other provinces. We are pleased for our contribution to the local people. Sewing and other processes of short term orders are carried out in Ceseka Textile Factory. Semi-finished products coming from Milteks are sorted and made ready before sewing. Production starts in sewing lines balanced according to the style structure. Production processes on these sewing lines flow on one-piece and comply with lean production techniques. Merchandise movements from one process to another on sewing, ironing and packing lines are carried out by employees. According to Lean Production Techniques, transition period from one style to another is under 10 minutes. (Changing the categories does not exceed half-day.) During the production processes, goods are controlled by process controlling staff and oriented to high quality production. All products pass the quality tests before packing and being packed with all the labels of customer attached in customer-branded bags. Garments produced and packed in customer’s standards are prepared and put in parcels according to sizes and amounts that customer demand, and made ready for shipment after a final control by customer representative. General Manager Ass. ProduĐƟon Quality Assurance Planning Process Exec. Warehouse Quality Control Human Resources Care service Service & Repair Logistcs Milteks contributed a lot to our region’s recruitment with investments in Ordu-Fatsa. We are witnessing and experiencing the social and environmental impacts in the area. Its role in region’s economical development has been increasing since the year it was founded. Olgun Topkaya Director of Fatsa Organized Industrial Zone 9 Customers We Work With Product Sales Milteks Textile CO. is engaged in garment manufacturing on order and exporting all over the world according to customer demand. Fabric and accessories used for production of garments are either developed in Turkey or imported on customer demand. 95% of garments are exported to Europe; Germany, England, France and Italy. The share of the Turkey sales in production is approximately 1%. Turkey %1 USA %3 Denmark Switzerlad Austria Swiss %4 %3 %3 Others Greece England %2 %6 %13 %8 France %10 Italy %9 Germany %38 CAN ANAD DA USA MEX EXIICO PAN PA NAM AMA SU U PERU CHILEE UR ARG AR GEN NT 10 SWEDEN EDEN UNITTED KINGDO OM DEENMA DENM ARK POLA AND GERMANY CZEECH REEPUBLIC C BEELGIUM M FR RANC CE 81% of the production is men’s sports apparel. Unisex shirts are also included in this group. Sports shirts and shorts, replicas, referee shirts and shorts, running, leisure, lifestyle, basket wear, sportswear, tennis wear are also included in this group. Kids orders are about 15%. Apart from the unisex apparel that women can also wear, garments like skirts, jerseys, T-shirts, trousers produced only for women are about 4% in total. Producing a variety of sports apparel, Milteks Textile CO. produced 62% T-shirt Group (Polo Neck Collar, Team Jerseys, Long sleeve and short sleeve T-shirts) , 24% Sleeveless Group (Runners, training vests) and 22% shorts and trousers group. Others include minikit, tennis skirts and other products with lower production in 2011. AU USTRIA SWITZERLLAND ROMANIA A ITALY SPAIN POR RTUGALL GR REECEE RUSSIA AN FEDERATION JAP PAN DUBAI DUB URINA NAME ME CAMER ROON BR RASIL RUG GUAY TA AIW WAN HO ONG KO ONG TH HAILAND D MALAY YSIA SING GAP POREE IND DON NESIA AUSTR TRALIA A SOUTH AFRICA A TIN INA NEW ZEEALA AND D 11 Fabric Contents Milteks Textile CO. mostly uses knitted fabric. 99% of fabric is local production. It is also possible to import the fabric from other countries or companies on customer demand. Most of the fabric are developed by our team and produced in Turkey. Therefore, the production can be done faster and cheaper. There are hundreds of fabrics developed in this manner and being used on current jerseys. Ingredients of all fabrics used for production are cotton or polyester. During the report period, 78% of total fabric used was polyester and 22% was cotton. We are aware of that the polyester is not a sustainable fabric at the moment. With this regard, we use re-cycle polyester if asked by the customer. cotton 23% organic 43% CmiA 34% cotton 22% polyester 78% Sublimation Sublimation paper printing is applied on 11% of the polyester fabrics used for the production. Since the quality standards could not reached with local produced sublimation papers, imported sublimation paper printing have been used in whole production for the last two years. 12 Re-cycle Polyester The majority of the world’s PET production – about 60% – is used to make fibers for textiles; about 30% is used to make bottles The reason recycled polyester (often written rPET) is considered a green option in textiles today is twofold, and the argument goes like this: 1. Energy needed to make the rPET is less than what was needed to make the virgin polyester in the first place, so we save energy. 2. And we’re keeping bottles and other plastics out of the landfills. It is true that recycling polyester uses less energy that what’s needed to produce virgin polyester. Various studies all agree that it takes from 33% to 53% less energy. If we use the higher estimate, 53%, and take 53% of the total amount of energy needed to make virgin polyester (125 MJ per KG of ton fiber), the amount of energy needed to produce recycled polyester in relation to other fibers is: Organic Cotton Organic cotton products have been offered by the Group, both yarn and fabrics since 2005. Central Textiles group of companies has received full certification under organic Exchange 100 (OE 100) in 2008 respectively. Project CmiA Milteks Textiles has joined the Project CmiA (Cotton made in Africa) in 2008. Core principles ‘Helping people to help themselves’ is a core CmiA principle. The smallholder farmers receive on-site training in improved cultivation methods which allow them to increase their crop yields, generate higher income and thus raise their standard of living through their own efforts. CmiA plans to finance training over the long term through financial contributions from participating cotton trading companies, as well as through levying CmiA licence fees. Cotton made in Africa is used in the fashion and home textiles segments and all articles using CmiA are distinguished by a red label. CmiA is an ingredient brand: this means that it is not a product brand, but rather a brand for African cotton which is used as a raw material in branded products. CmiA thus defines itself as a Quality Seal and appears besides an already existing brand. It is also applied by branded product suppliers as an ‘extra quality mark’ to distinguish and differentiate their respective product. Cotton- Fiber 34% of cotton-fiber fabrics are produced by cotton of African countries and CMIA certified. Puma is having most of its cotton goods produced by African cotton since 2008. Along with Puma, many companies are following this in accordance with improvement of the poor countries project. %43 of %100 Cotton fabrics used for production is made of organic cotton yarn. Some of our customer requested the whole cotton orders as African Cotton and Organic Cotton. 13 Code of Conduct Milteks vision is to be recognized as the best value adding company for our client and for the world time. We at Milteks declare our strict adherence to the respect of Human Rights. We, hereby, announce that we will definitely comply with the guidelines mentioned in our laws. As a commitment to these standards, Milteks declared the following Code of Conduct: t MILTEKS should not form any condition of forcing or unwilling working depending on working contract, Our Sustainable Values We believe that we live in a story that characters love being successfull, never say enough always keep going for endless success stories We create added value to our clients, our self and the world We learn and teach each other, improve everyday We follow up news and innovate We establish good & effective communication with our stakeholders Work and act with the awareness of saving the world and its resources Sustainable Production Concept M anufacturing I nnovation L iability T echnology E nvironment K now-how S ustainability 14 t MILTEKS has to follow all legal procedures of Child Labor. No child below minimum age required by the law shall be hired, tMILTEKS shall not apply or let others apply any corporate punishment and any physical or psychological harassment or compulsion, tMILTEKS will pay all the mandatory wages and benefits of the workers which are mentioned in the laws, tMILTEKS has to follow the requirements of current laws and obligations in the determination of working hours, tMILTEKS will employ workers and will decide the wage & promotion of them according to their ability of work, but not in terms of race, color, language, religion, ethnic origin or gender, tMILTEKS subscribes absolutely to follow the requirements about Work Health & Safety and also the Code of Conduct of the customers. tMILTEKS is responsible to take all necessary actions for the possible working area risks and to embrace a working concept which puts the health of workers at first step always, t MILTEKS holds the workers in esteem in their freedom of association and about in their other social rights as far as they are all according to the laws of the Turkish Republic, t MILTEKS will designate its activities which may affect the environment, will work in order to prevent environment pollution, will aim the best in terms of environment & health and accepts to follow all the rules about environment which are defined by the laws. If you may require more info about the social standards which have been mentioned above, please ask for the “Milteks Code of Conduct” hand book from Human Resources Department. 15 Our Financial Performance ITKIB (Istanbul Textile and Apparel Exporters Association) “Golden Award” of 2010 and 2011 Firstly, I congratulate you for ranking as Turkey’s first 1000 exporter companies honor roll prepared by Exporters Council of Turkey and for your adding value to Turkey’s economy. With exportation of 114 billion dollars in 2010, you ensured that Turkey is once again in 100’s club. You have raised the level of Turkey by searching the countries and entering into new markets in a period most countries are still struggling with crisis and impacts of World’s Economic Crisis are still remaining. Thanks to your successful works, total export numbers of the year 2001 has become achievable by only one sector. main duty and priority will be removing the obstacles and showing you the way. Your success encourages us and proves that 500 billion dollars export is not a dream anymore. I congratulate you, board members, partners and all your employees and express my gratitude and appreciation on behalf of my country and nation. We will reach our target; 500 billion dollars export in 2023, 100th Anniversary of Turkish Republic, altogether with our strategy determined to make Turkey’s economy one of World’s largest 10 economies. As it has always been, our 16 In this context, both legal regulations and restructuring of subsidies, enabling the service sector to take advantage of export subsidy will contribute Turkey’s growth of exports. Increasing abroad staff number to 250, opening new consultancies and strengthening the current ones, analyzing target countries and markets with countries’ desks are our studies that will ensure Turkey to take firm steps forward for our 500 billion dollars target. =DIHUd$ö/$<$1 Minister of State OUR FINANCIAL PERFORMANCE As a leader in sportswear apparel industry in Turkey, Milteks Textile continued its development on institutionalization in 2010 and 2011. Added value of an organization to the national economy is measured by Istanbul Chamber of Commerce through a research called “Survey of 500 Industrial Enterprises”. -What do you think about your business UHODWLRQVKLSZLWK0ø/7(.6" “Milteks Group is highly dependent on its commitments and working structure is very well-organized. Executives and employees follow up all processes and payments are made on time.” Arzu Rodop +6%&%$1.$ù -What do you think about your business UHODWLRQVKLSZLWK0ø/7(.6" t .ƌMUFLT 5FYUƌMF UPPL 496th place among Istanbul Chamber of Commerce, second biggest Industrial Enterprises of Turkey in 2009. 363 t Milteks Textile took rd place among Istanbul Chamber of Commerce, second biggest Industrial Enterprises of Turkey in 2010. “We have been working with Milteks since the beginning of the year 2000. Executives of the company are very experienced in their fields and trustworthy people.” -:KLFKEUDQGRUUHWDLOSURGXFWZRXOG\RXGH¿QH DVVXVWDLQDEOH" “Products developed by natural resources can be described as the most sustainable to me.” -,I\RXKHDUWKHZRUGV0ø/7(.6DQGVXVWDLQDELOLW\ LQRQHVHQWHQFHZKDWZRXOG\RXWKLQN" “I believe Milteks is a sustainable company t Among ranking of Turkish Exporters Assembly, 604 Milteks Textile took th place in second 500 in 2009. t "NPOH SBOLƌOH PG 5VSLƌTI &YQPSUFST "TTFNCMZ Milteks Textile took 2010. caring for its customers, suppliers, employees and environment.” (UROg]EHN +6%&%$1.$ù 426th place in first 500 in 17 OUR FINANCIAL PERFORMANCE Management of Activities Related to Financial Responsibilities Financial performance of Milteks is monitored by company management, primarily Board of Directors. All reports related to financial performance are carried out by Financial Department. Production milion pcs 48% Milteks Textile Co. is increasing the sustainable production capacity. Due to major effect of World Cup on 2010, the numbers of orders increased 48% compared to 2009. 6,0 others Ajara2 3,0 Ajara1 Ceseka Milteks 0,0 2009 2010 2011 Compared to 2009, sales increased 48% in 2010. The reason for this increase is the excessive order demands due to World Cup. These numbers shows that; Milteks Textile’s infrastructure investments are strong enough to meet 48% of increase. After 2010, Milteks Textile planned the growth target according to the previous year as %10. However, while planning to keep growth rates constant, the amount has decreased approximately %4 as a result of an unpredictable, customer-based target error. This decrease has not changed the planned targets. As Milteks, we have a economic impact on our stakeholders directly. Our economic value is distributed to suppliers, employees and governments. The table below shows the details of this distribution. Million € 2009 Turnover 2010 2011 31,7 28,2 35,5 expenses 19,4 26,3 22 Workers wages and other benefits supplied Providers of Finance 1,2 1,6 1,3 5,4 4,1 3,4 Corporate Taxes 1,6 1,7 1,7 Charity for Community 0 0,4 0,0 Impacts distrubuted economically 27,6 34,0 28,4 Economical Impact Protected 0,6 1,5 3,4 Total Turnover / Milion € 40 31 30 20 ,7 10 2010 2009 Turnover 18 Supplies Taxes 2011 Wages Milteks Textile CO’s sales turnover was 31,7 million € in2011 OUR FINANCIAL PERFORMANCE Government Support Ecenomical Impact /Milion € 40 1. Government support plays an important role in Milteks order costs. During modal pricing process, these discounts are allowed and numbers of orders are increased. It is a fact that Turkish textile industry will be more and more competitive in world market as long as government support and funds are increased. Tax Relief (000 €) 30 € 95.000 According to the Law No 6111, treasury support %5 .............to pay insurance premiums on time 2009 2010 2011 73,1 71,5 90,7 89,0 95,0 95,0 1,6 1,7 0,0 2009 2010 2011 39,4 66,6 70,0 185,9 320,6 350,0 2010 2011 204,9 213,2 20 %100 Treasury support for disability allowance (According to the Law No 6111) 10 2010 2009 Income Supplies 2011 Wages Taxes stopaj desteŒi(1.000 €) SGK desteŒi(1.000 €) 500 1. Tax Relief (000 €) 400 € 420.000 Support income withholding (According to the Law No 5084) 300 200 2. Incentives 100 Social security premium contribution (000 €) (According to the Law No 5084) 0 2009 2010 2011 stopaj desteõi (1.000 €) 225 € 213.000 1. Tax Relief (000 €) 150 Support income withholding (According to the Law No 5084) 75 Local Purchasing 0 2009 2010 2011 As Milteks, we try to supply all our needs from local sources in Turkey where our central factory is located, as a part of our sustainable growth target. Milteks supplied 80% accessories of manufacturing facilities in Turkey and Georgia from local sources in 2010 and 2011. 15% of other accessories are purchased from Europe, and 5% from Far East. Payments to Suppliers million € 30,0 Indicators 25,0 %94,7 21,7 million € 2009 2010 2011 17,18 0,78 26,11 1,08 21,71 0,71 0,59 15,81 0,08 24,73 0,53 20,47 20,0 %94,3 15,0 1. (million €) %92,0 10,0 5,0 0,0 2009 Europe 2010 Far East 2011 Local Payments to FarEast Suppliers Payments to European Suppliers Payments to Local Suppliers Payments to Suppliers (Million €) 1,00 As Ajara Textile supplied 42% of material requirements from local suppliers in 2009, the percentage Indicators 0,35 million € 2009 %100 0,75 1. 0,25 %100 %100 0,00 increased to 64% in 2011. In 2010, additional building of Ceseka Textile which costed about million € 0,5 was constructed by a local contractor. 2009 2010 2011 0,82 0,00 0,35 0,00 0,00 0,33 0,00 0,82 0,00 0,35 2011 Indicators 2010 2011 36% 1. 0,75 30% 64% 0,50 70% 0,25 2010 0,33 0,00 2009 1,00 1,03 Payments to FarEast Suppliers Payments to European Suppliers Payments to Local Suppliers Payments to Suppliers (Milion €) 1,25 million € (million €) 0,50 %58 %42 0,00 2009 2010 (million €) Payments to FarEast Suppliers Payments to European Suppliers Payments to Local Suppliers 0,33 0,00 0,69 0,00 1,03 0,00 0,20 0,21 0,38 0,14 0,48 0,66 2011 19 Most Valuable Asset Value for Human Life Milteks accepts employees as “Most Valuable Asset” and offers a healthy, safe and efficient working environment. 20 O ne of primary stakeholders; our employees are invaluable. Increasing their satisfaction levels, improving working environment, providing the equality of opportunity, contributing to their personal and professional developments and ensure their commitment to Milteks are among our most important responsibilities. 21 Business And Labor Practises Employees Milteks accepts employees as “Most Valuable Asset” and offers a healthy, safe and efficient working environment. In this context Milteks Textile Group; Equality of opportunity applies to everyone. We give opportunity to improve themselves to all of Fulfils all legal obligations towards all of its employees. our employees without discriminating against race, t %PFT OPU EJTDSJNJOBUF FNQMPZFFT BHBJOTU SFMJHJPO nationality, gender and belief. language, gender, sexual orientation, race, disability Recruitment and appointments are made with great care and selectivity. Faithfulness, courage, justness, or age in terms of human resources practices. t *OGPSNBUJPO JO UIF QFSTPOOFM öMF CFJOH JO UIF öSTU sensibility and honesty are main criteria. Priority is given place, reserves all information whether personal or to internal sources when our company needs staff. As a corporate, in other words “an institution turned its practices into a system and procedure”, we expect our employees to be honest, positive and have good t 0SHBOJ[FT USBJOJOHT BOE BDUJWJUJFT GPS QFSTPOBM BOE skills on teamwork; behave rationally and fairly on all business development of employees and helps them business relations. to manage their careers. Since we are aware of the fact that social and economic t 5SJFT UP JNQSPWF UIF MJGF TUBOEBSE BOE RVBMJUZ development can be achieved with a peaceful working of employees and provides balanced and fair environment, being a model company in peaceful distribution of wages and vested benefits. employer/employee relations is our priority. t 5BLFT OFDFTTBSZ QSFDBVUJPOT GPS B TBGF XPSLJOH We create a working environment according to environments and occupational health. occupational health and safety laws and behave properly. not. t%PFTOPUJOUFSGFSFXJUIQSJWBUFMJGFPGFNQMPZFFT Human Resources Policy Our Human Respect policy is our corporate value and understanding of management, and based on basic principles listed below: We believe that our employees are our most valuable asset. We do not consider our togetherness as temporary and try to have a healthy relationship on a permanent basis. Our principle is to add talented and successful employees to our group and work for together many years. 22 Our respect to society and individual comes before our production capacity conditions. Child Labor and Forced Labor As no child labor or forced labor is employed in our company, it is our rule for our suppliers and partners not to employ any child labor or forced labor. &NQMPZNFOU%BUB 5IFWBMVFTPGFNQMPZFFTBSFBTPG%FDFNCFSUI0VS employee agreement is a full-time and indefinite term DPOUSBDU$POUSBDUTJO5VSLFZBSFPSHBOJ[FEVOEFSMBXT PG5VSLFZBOEDPOUSBDUTJO(FPSHJBBSFPSHBOJ[FEVOEFS laws of Georgia. In Milteks structure, everyone from Chief level is chosen among the bests in their field. 8IJMF TPMWJOH QSPCMFNT JO GBDUPSJFT .JMUFLT VUJMJ[FT from knowledge and experience of these managers. When necessary, these employees are sent to factories as short-term instructors. In 2011, for two reasons, we couldn’t achieve this improvement seemingly. As a result of cancellation of planned Ceseka orders due to a customer-based reason, numbers of the employees in the factory had to be reduced. In Ajara, some employees quit because due to opening new factory. Employees that are living around new factory named AJARA II, started to work in new factory. After eliminating these side effects, UVSOPWFS SBUF JT DBMDVMBUFE BT *O UVSOPWFS SBUFXBT 5IFSBUFPGFNQMPZFFTUIBURVJUJOXBT of all employees. We see that working conditions JNQSPWJOH FWFSZ ZFBS UIJT SBUF JT SFEVDFE UP JO 2010. In Milteks, where such an event did not happen, these rates are: Number of Employees Year 2009 2010 2011 MILTEKS 197 205 199 CESEKA 268 471 440 AJARA 487 596 936 tJO tJO tJO 1600 282 1269 1200 Milteks 93 Female Workers 2009 94 2010 92 2011 92 Female Left 19 21 14 Male workers 103 181 147 Male Left 21 30 20 970 800 Female LeŌ 102 Female Workers 747 400 Ceseka Female Workers 2009 190 2010 321 2011 309 Female Left 57 49 85 Male workers 78 150 131 Male Left 18 34 46 0 2009 2010 2011 500 Ajara 2009 2010 2011 Female Workers 463 557 868 Female Left 26 23 183 Male workers 24 47 68 Male Left 2 4 10 68 76 375 Male >ĞŌ 250 41 Total Female Workers 2009 2010 2011 Male workers 378 747 970 1269 Female Left 102 93 282 Male workers 205 378 346 346 Male Left 41 68 76 125 205 0 2009 2010 2011 %FNPHSBQIJD1SPöMF of Employees 1000 68 PGUIFFNQMPZFFTJO.JMUFLT)FBERVBSUFST are women. In our garment factories, this rate JT RVJUF IJHI5IJT SBUF JT JO $FTFLB5FYUJMF BOEJO"KBSB5FYUJMF*O"KBSB5FYUJMFXIPMF employees working in lines are women. In Ceseka Textile, except for Chief Administrative 0óDFSBMMFYFDVUJWFTJODMVEJOH%FQVUZ(FOFSBM .BOBHFSBSFXPNFOPGFNQMPZFFTXPSLJOH in Milteks Group are men. %20 %80 500 868 131 309 107 92 0 M7LTEKS CESEKA AJARA 1.600 922 8FEPOPUIBWFBOZFNQMPZFFTVOEFSZFBST "T TFFO PO UIF UBCMF PG %FNPHSBQIJD 1SPöMF of Employees, we have a young and dynamic structure. The rate of employees between ZFBST JT 5IJT TUSVDUVSF NBLFT JU easy to shape our Human Resources system, especially education, development and career management in accordance with younger generation employees. At the same time, this young employee structure provides competitive advantage to our group. 4% 757 1.200 605 38% 58% age 18-30 800 age bet. 30-50 596 over age 50 477 400 331 0 2009 2010 2011 ŝƐƚƌŝďƵƟŽŶ ŽĨ emplŽLJĞĞs ŐĞ'ƌŽƵƉ age 18-30 age bet. 30-50 Žver age 50 24 2009 952 605 331 16 2010 1.272 757 477 38 2011 1.575 922 596 57 DEMOGRAPHIC PROFILE OF EMPLOYEES Our company made payments increasing on yearly basis to Social Security Institution and Unemployment Insurance as seen below. The reason for increase in Social Security Institutions payments is increased number of employees on the basis of years and increased amount of real earnings on insurance charges. 2009 2010 Others Local People Total Others Local People Total Others Local People Total D7LTEKS A.b 0 10 10 0 10 10 0 10 10 CESEKA A.b. 3 2 5 2 3 5 1 4 5 AJARA TEXTILE 5 2 7 6 3 9 8 4 12 8 14 22 8 16 24 9 18 27 Toplam Tüm Įrmalar yerel halk 2011 2009 2010 2011 Local People at Upper Management 20 33% 33% 15 29% 80% 60% Ajara 40% 10 100% 100% %100 Ceseka Milteks 5 0 2009 2010 All Milteks employees are people living in surrounding areas. Residents of surrounding areas of Milteks Headquarters as possible are preferred for recruitments in order to reduce shuttle routes. Percentage of employees living in surrounding areas is increasing every year. 2011 %VF UP UIF DPOUJOVFE JOWFTUNFOU JO "KBSB5FYUJMF UIF number of executives is increasing. Need for executives are met by local executives as possible. The percentage XBTJOBOE0VSBJNJTUPJODSFBTFUIF QFSDFOUBHFPGMPDBMFYFDVUJWFTUP We pay particular attention to employment of local "TPGUIFQFSDFOUBHFPGMPDBMFYFDVUJWFTJT people and fair paying in domestic and foreign 6OMFTTUIFPSHBOJ[BUJPOBMTUSVDUVSFDIBOHFTUIJTJTUIF communities. highest percentage possible for Ceseka. DEMOGRAPHIC PROFILE OF EMPLOYEES There is an objective assessment process for all applications for job advertisements. All details of Recruitment process of Milteks are included in Recruitment and Placement Regulation and there is not any specific procedure for local employment. Hours/Year 2010 Training Topics Occupational Health and Safety Personal Protective Equipment Emergency Fire Training 1 Emergency Fire Training 2 Transport Lifting Stowage Electricity Risk and Precautions First Aid Safety on Maintenance and Repair Work Ergonomics Chemical Works 2 1 2 2 1 1 2 1 1 1 Hours/Year 2011 Training Topics Company Policies Wage/Salary Calculation Discipline for Chefs Hygiene Collection and Separation of Wastes Codes of Conduct Personnel Regulation System of listening to Requests and Complaints Human Rights (Ceren at, Sogep) PUMA Codes of Conduct (Puma.Safe Humanity) Discrimination (Ceren at, Sogep) Women Rights (Ceren at, Sogep) Communication (Ceren at, Soge ) Procedure of listening to requests and complaints at work place Labour Law Performance System EMPLOYEE SELECTION Personnel Management of the company provides proper staff due to departmental requests and needs. Available references are used to meet the requirement. In case the references are insufficient, need for staff is met through newspaper, radio and internet ads. Personnel Management makes the first interview with the applicant and sends the appropriate applicants to head of related department with the approval of General Manager. An examination can be made for selection of personnel, if necessary. For recruitment of executives or recruitment staff, a senior executive or manager of related department may make the öSTU JOUFSWJFX BDDPSEJOH UP TQFDJBMJ[BUJPO BOE TUBOEBSE According to the specifications of related department, tests or examinations can be applied to determine applicant’s intelligence, knowledge and skills before the interview. 26 DŝůƚĞŬƐdĞŬƐƟů & ĞƐĞŬĂdĞŬƐƟů & ũĂƌĂdĞdžƟůĞ 2 2 2 1 1 1 1 1 6 3 6 6 6 DŝůƚĞŬƐdĞŬƐƟů & ĞƐĞŬĂdĞŬƐƟů & ũĂƌĂdĞdžƟůĞ ĞƐĞŬĂdĞŬƐƟů 3 6 6 ũĂƌĂdĞdžƟůĞ RECRUITMENT: 3FDSVJUNFOU JT öOBMJ[FE XJUI UIF BQQSPWBM PG 1FSTPOOFM .BOBHFS%FQBSUNFOU.BOBHFSBOE(FOFSBM.BOBHFS CONTRACT: Hired personnel start working after signing the contract. Personnel undertake to comply with the workplace rules and provisions of personnel regulations by signing this contract. 53*"-1&3*0% In Turkey two-month trial period is applied to hired personnel however in Ajara Textile it is only 1 month. Parties can disrupt the agreement without notification and compensation. DEMOGRAPHIC PROFILE OF EMPLOYEES A/PJTF-FWFM$POUSPMA"KBSB5FYUJMF Ajara Textile cares to be best paying factory in the region standards and well aware that purpose of presence in that region is lowering the production costs to levels close to Far East. A0DDVQBUJPOBM)FBMUIBOE4BGFUZ5SBJOJOH"KBSB5FYUJMF As Ceseka Textile, Ajara is also like a technical school in this region. Even though some of the people does not reach the required standards for the job they applied, they are given a technical training. Those employees are placed in nonproduction departments. -BCPS3FQSFTFOUBUJWF&MFDUJPO%BZA"KBSB5FYUJMF The Project on SHREC The Project on Supporting Human Rights Enhancement of Communication Observer of the Project: Preventing discrimination and maltreatment at workplace are among the most important elements for a peaceful and fair workplace. To achieve this, management of factories, production brands and legal legislator’s of that company have different responsibilities. At the same time, one of the things that should be done is raising administrative staff and employee awareness for human rights and prevention of discrimination issues and strengthening the communication between employees who have different positions in the company. "DDPSEJOHMZBPOFXFFLUSBJOJOHJTPSHBOJ[FEPO+VOFUIOEJO$FTFLB5FYUJMF 5IJTPSHBOJ[BUJPOJTDPOUJOVBUJPOPG.JMUFLT4PHFQDPMMBCPSBUJPOUIBUTUBSUFEJOBOEBQBSUPG.JMUFLT Corporate Responsibility Practices. Olgun Aydın Puma.Safe Humanity & Ecology Auditor and Responsible for Continious Improvement “I really wanted this Project to happen. I know that due to newly developing industry in Anatolia, there are some problems about corporate culture. Thanks to this project, we had a chance to interfere and find solutions for such problems.“ Ahmet Gökdemir (.JMUFLT5FYUJMF%FQVUZ(FOFSBM.BOBHFS) “Both during and after the project, we have SFBMJ[FEUIBUPVSFNQMPZFFTIBWFNBOZQSPCMFNTUIBU we do not know in their daily life and business life. As a result of this project, as Milteks, we will do our best to eliminate problems in workplace. They will also use the things they learned here and try to solve their problems in their private lives. Our employees’ happiness and effectiveness in production is very important for us. Thanks to this project, communication with our employees will also be strengthened.” Practice and Content *O UIF QSPKFDU TDPQF USBJOJOHT BSF PSHBOJ[FE XJUI UIF participation of workers, line chiefs and administrative staff. These trainings are given in the working hours and no salary deduction is applied for participants. In order to ensure an active participation and discussion, numbers of participants are limited. chosen from each line. At the same time, participants did not only share the information with other employees, but also their family members and relatives. Trainings are held in comfortable environments to talk freely and communicate. For this reason, no line chiefs participated in sessions with workers and no male participated in women sessions. Trainings are held in team work and simulation methods. To enable participants to talk, presentations were short as possible. By this way, trainings were flexible and can be revised according to needs of each group. A significant part of participants’ first workplace was Ceseka. The profile of participants was quite young and they were at the beginning of their working life. This situation increased the potential of creating long-term effects by this training. In addition to these titles, a half-day workshop is PSHBOJ[FECZB4PHFQSFQSFTFOUBUJWFXJUIQBSUJDJQBUJPO 'PVS IPVSTFTTJPOT DBSSJFE PVU FWFSZ EBZ XJUI of administrative staff and line chiefs. Human rights, participants of each session. Therefore, total of 120 discrimination and communication issues are discussed people participated in trainings. 120 people were in this workshop. chosen randomly and equally from each line. To enable the participants share the information with other employees easily, an equal number of participants are Feedback From Employees After the trainings, a randomly chosen group of participants are selected and interviewed. The interviews are carried out by Sogep and PUMA representatives. To ensure that participants express their views freely, Ceseka and Milteks representatives did not attend to these interviews. Interviews show that trainings lead to increase of self-confidence on participants. Being aware of their rights and knowing where to transmit requests and complaints firstly lead to increase of self-confidence. “I have never participated on such a training before. Topics were about workers. Sometimes we discuss with our friends as if we are in a class. But we have never discussed those issues together with a big group.” *TB%PǘEV “Training was good for me. I think that these trainings are important in terms of people speaking out their problems. We knew that but we could not speak out. I think it is important in this context. We talk with our friends. I can see that they also thought trainings were good.” Elif Çelik “I would participate to these trainings consistently if I had a chance. Because my knowledge is increased. I have improved my dialogue between my husband and children. I have learned to express my demands without arguing.” Sema Gülçiçek We have seen that especially female participants learned more about women rights and it affected their lives seriously. Trainings improved the communication between employees from different levels. Participant feedbacks showed that the session about communication was quite impressive. However, the only part of project that strengthened DPNNVOJDBUJPO XBT OPU UIBU IPVS TFTTJPO -JNJUFE participants for each session to active participation and creating a participant profile allowing them to talk freely were the basic element. Both workers communication with each other and workers communication with line chiefs were effected positively. FEEDBACK AND EVALUATION “ I KDYHEHHQZRUNLQJKHUHIRU\HDUV7KLVLVWKH¿UVWWLPH,KDYHSDUWLFLSDWHGLQ DVXFKWUDLQLQJDQG,DPYHU\KDSS\$WOHDVWQRZZHNQRZDERXWRXUULJKWV7KLQJV DERXWZRPHQULJKWVZD\VRIHIIHFWLYHFRPPXQLFDWLRQ«:HOHDUQHGWKHPE\SOD\LQJ DQGQDUUDWLRQ:RPHQULJKWVLVVXHZDVWKHPRVWLPSRUWDQWIRUPH$VDZRPDQ OHDUQLQJWKHPPDGHPHYHU\KDSS\)RULQVWDQFHDFWLVYHU\LPSRUWDQWIRUXV <HVWHUGD\ZHIRXQGRQWKHLQWHUQHWDQGUHDGWKHDFW6SHDNLQJIRURQHVHOILVYHU\ LPSRUWDQWIRUDZRPDQ:HOHDUQHGWKDW'XULQJWKHWUDLQLQJVZHKDYHWDONHGDERXW family problems as well. Now we learned to speak one by one and we understood that we need to listen to each other. It is very important for me because we used to clash a lot. Now we have better relations. We are psychologically relieved. People get bored when they do not know what to do under the pressure. Now I think that we are spiritually relieved. Tuba Kale ” “I DPYHU\KDSS\,GLGQ¶WKDYHDVFKRROOLIH,KDGDGLVWDQFHHGXFDWLRQVR,IHOWDVLI ,ZHQWWRVFKRROQRZ,OHDUQHGPDQ\WKLQJV:HVKDUHGWKDWZHKDGEHHQH[SRVHGWR YLROHQFH:HKDGQHYHUWDONHGDERXWWKDWEHIRUH,KDYHEHHQZRUNLQJKHUHIRU\HDUVEXW ,RQO\KDYHRQHFORVHIULHQG6KHZDVDQROGQHLJKERURIPLQHWKDW¶VZK\VKHNQRZVPH well. I want everyone to attend these trainings because you feel the lack of it. You also feel the lack of being a worker. I reconciled with my job Gülay Erkuş .” It can be seen that basic result of Project is strengthening of participants. It is important that working conditions at workplaces should be fair and workplaces should be a place to strengthen. This project contributed to strengthening of employees but of course continuity is important as the participants also mentioned. The project could not been applied with all employees, this can be regarded as weak part of the project. However, as much employees participated possible. We had to make a choice between more participants and less active trainings and less participants with more active trainings. The basic method is determined as an active participation by reducing the number of participants. 0OUIFPUIFSIBOEJUJTJNQPSUBOUUPPSHBOJ[FBOPUIFS training program for other employees who could not attend to this project. :KDWGR\RXWKLQNDERXW\RXUEXVLQHVVUHODWLRQVKLSZLWK0ø/7(.6" “It is a relationship with mutual trust. We do not feel the pressure while we are working with employees of Milteks.” ,I\RXKHDUWKHZRUGV0ø/7(.6DQGVXVWDLQDELOLW\LQRQHVHQWHQFHZKDWZRXOG\RXWKLQN" “Sustainability report and Puma’s activities on sustainability comes to my mind.” Do you think Milteks Textile Group is committed to basic principle of sustainability and to IXO¿OOLWVFRUSRUDWHUHVSRQVLELOLWLHV" “Yes I think. However, I am not sure how much of this is Milteks’ own initiative. I cannot decide if sustainability practices are company’s own initiative or these practices are carried out in order to meet the requirements of brands.” Ceren İşat 4PDJBM%FWFMPQNFOUBOE(FOEFS&RVBMJUZ1PMJDJFT$FOUFS 4VTUBƌOBCƌMƌUZ Management We are guided by our vision and corporate values. In addition to our ethical and transparent approach of working, we attach great importance to managing and improving our economical, environmental and social performance. We monitor our economical, environmental and an d social soci so cial al p per erform erfo formances rm aacc ccordanc cc nce with wi o our ttar targets, arge gets ts, performances in accordance exam ex amin am ine in e th the e re resu sult su ltss an lt and d im improve considering opinions and examine results need edss of o ed our ur ssta take keho hold lders. needs stakeholders. efficiency, use of raw materials, regulations and laws, business ethics and corruption, human rights, supply chain, difference employees, worker health and safety. integrated We aim to o ha have ve aan in integr grat ated ed approach of sustainability, managing mana ma nagi na ging gi ng potential pot otential sustainability risks ot ri and turning them into opportunities in opp ppor pp ortu or tunities by benefiting from various systems. tu sy t t t t These sy Th syst stem st emss ar em are e about ab t envi vironmental issues like systems environmental preventi pr ting ti ng p pol ollu ol luti lu tion ti on, waste management, carbon on preventing pollution, footprin fo int, in t, product pro p rodu ro duct du ct rres esponsibility, water es er and energy footprint, responsibility, 32 As Milteks Textile, we are applying the listed standards to efficiency ffici cien ency en cy aand nd ensure the su sustai aina ai nabi na bililility bi ty of ourr increase the effi sustainability manageme ment system: management *402VBMƌUZ.BOBHFNFOU4ZTUFN *40 2VBMƌUZ .BOBHF HFNF HF NFOU 4ZTUFN NF *40&OWƌSPONFOUBM.BOBHFNFOU *40 &OWƌSPONFOUB UBMM .B UB .BOBHFNFOU 0)4"4 0DDVQBUƌPOBM )F )FBM BMUI BM UI BO BOE E 4B 4BGF GFUZ UZ 0)4"40DDVQBUƌPOBM)FBMUIBOE4BGFUZ -FBO -F BO 1SPEVDUƌPO 4ZTUFN -FBO1SPEVDUƌPO4ZTUFN SUSTAINIBILITY MANAGEMENT 0OEFS,VTBUNBO4FNNFS$POTVMUƌOH.BOBHƌOH%ƌSFDUPS "$BTF4UVEZPO-FBO+PVSOFZ Milteks Tekstil and all of the three plants are now operating in line with lean principles. Today, as a leading firm, Milteks Group of companies are frequently visited by local and international firms so as to see lean practices in place. After examining and mapping the value-stream in 4UBOEBSEƌ[FE 8PSL -ƌOF #BMBODƌOH $FMM %FTƌHO 'BDUPSZ-BZPVU-FBO.FBTVSBCMFTBOE'BDUPSZ4DPSFDBSE 1VMM 1SPEVDUƌPO 4ZTUFN FòPSUT CFHBO TIPSUMZ BGUFS UIF BDUƌWƌUƌFTPG,Bƌ[FO4BOE7ƌTVBM8PSLQMBDF.BOBHFNFOU and has continued with the development of Total 1SPEVDUƌWF.BƌOUFOBODF*OHFOFSBMXIƌMFGPMMPXƌOHUIF %."*$NFUIPEPMPHZCBTFEPOUIFQSƌODƌQMFPGiXIBUƌT unmeasured cannot be managed”, first facilities became ‘measurable’ and then continuous improvement activities followed. In this way, Milteks group of companies can measure and improve its processes on a real-time basis in case any abnormality in the process is detected. 1MBOUTBSFSFHVMBSMZBVEƌUFEFWFSZNPOUITƌOBDDPSEBODF XƌUI i'BDUPSZXƌEF -FBO "TTFTTNFOUw BOE i$FMM "VEƌUw procedures and as a result of these evaluations, best-inclass practices vs. areas for improvement are identified BOESFQPSUFEPO"DUƌPO1MBOT The program achieved major improvements in quality TƌODF UIF CFHƌOOƌOH BOE 3ƌHIU UIF 'ƌSTU 5ƌNF 3'5 SBUFT IBWF ƌODSFBTFE B HSFBU EFBM 3FBMUƌNF 1SPEVDUƌPO .POƌUPSƌOH 4ZTUFN IBT CFFO ƌNQSPWFE CZ CPUI TIPQ øPPS4BOE7ƌTVBM8PSLQMBDFQSBDUƌDFTBOE(ƌ[TPGUXBSF which has been continually updated with additional modules according to the production monitoring needs. In this way, Milteks is now able to track and manage the workflow, inventories and, the cash flow in real-time. In addition, the combination of pull and push production systems contributes and greatly shortens the production MFBEUƌNFT 4UBOEBSEƌ[FE8PSL -ƌOF #BMBODƌOH BOE51. activities resulted in high equipment utilization and increased line efficiencies significantly. #ZNFBOTPGƌNQSPWFEXPSLøPXƌODSFBTFEDBQBDƌUZBOE reduced costs, Milteks has drawn the attention of wellknown brands and as a result the Group has opened three new facilities in Georgia this year. We conclude that Milteks’s success story is a case study for those who are aiming ‘growth’ and this shows us how growth can be achieved while eliminating wastes and improving XPSLøPX $PNQBSFE UP ƌUT DPNQUFUƌUPST .ƌMUFLT IBT gained a competitive advantage with the help of lean manufacturing program. We are proud to provide a small contribution to this program and recommend Milteks group of companies as an important source. Regarded as a never-ending process, we wish Milteks increasing success during their lean journey. In today’s competitive market, there are three vital features for an organization: growth, flow and cost. Usually the top management of companies consider ‘growth’ as a priority issue to address and work to intesify their efforts ƌO UIƌT EƌSFDUƌPO 0O UIF PUIFS IBOE GPS BO VOQSPGƌUBCMF organization, it is not possible to survive and carry on its activities. It used to be that companies set their prices BDDPSEƌOHUPUIFGPMMPXƌOHGPSNVMB$PTU1SPGƌUNBSHƌO 1SƌDF5IFBDDPVOUƌOHEFQBSUNFOUXPVMEEFUFSNƌOFDPTU based on the principles of cost accounting including raw materials, labor and overhead costs and a profit magrin typical for the industry would be added. The price would be passed on to the customer, who more often than not, paid it. This is no longer true. The profit equation is now as GPMMPXT1SƌDFGƌYFE o$PTU1SPGƌU5IƌTFRVBUƌPOTIPXTVT that there is no way out, cost reduction is the only solution UP FOTVSF UIF QSPGƌUBCƌMƌUZ $PTU SFEVDUƌPO HPBM DBO CF achieved by the elimination of all wastes throughout the organization. Therefore, “continuous flow” is required for a sustainable living in a business environment which can only be achieved by the elimination of all wastes in work processes throughout the entire value chain, from the DVTUPNFS PSEFS UP UIF EFMƌWFSZ PG QSPEVDU &TUBCMƌTIƌOH an efficient, environmentally sensitive, a safe and healthy work environment is both a necessity and a result of this approach. "T 4FNNFS $POTVMUƌOH XF IBWF TƌHOFE VQ B DPOUSBDU with Milteks and provided training and conducted lean NBOVGBDUVSƌOHPQFSBUƌPOTTƌODF8FƌOƌUƌBMMZTUBSUFE the program at the group center in Istanbul with the participation of top and middle level management and UIFOTQSFBEFEUPPUIFSHSPVQDPNQBOƌFT$FTFLBƌO0SEV 5VSLFZ BOE "KBSB5FYUƌMF ƌO (FPSHƌB 4ƌHOƌGƌDBOU QSPHSFTT Yours sincerely, has been achieved since the beginning of the program 33 SUSTAINIBILITY MANAGEMENT Milteks management aimed and planned a growth since the beginning of the new century, and decided to invest ƌOQSPEVDUƌPOTPGUXBSFƌO"GUFSBUXPZFBSSFTFBSDI it is assessed that management software packages would OPUCFFOPVHI*O.ƌMUFLTPSEFSFEBi(ƌ[1SPEVDUƌPO 'PMMPX6Q 4PGUXBSFw UP (ƌ[ 4PGU $PNQBOZ "GUFS HƌWƌOH B CSƌFGƌOH UP $PNQBOZ EFWFMPQNFOU PG UIF TPGUXBSF TUBSUFE5IFTPGUXBSFIBTCFFOVQEBUFESFHVMBSMZ*O software is enabled for Internet use and communicating with host of other group companies automatically. Thanks to these developments, group companies are able monitor production stages simultaneously and update the production reports any time. As a result, group companies do not need any written matters. Any update on orders by merchandisers can be reached by production departments of group companies simultaneously. Updates are also sent as reports related departments CZ (*; 4PGUXBSF UXP UƌNFT B EBZ 5IBOLT UP UIF UPLFO system that enables to reach any information while out of the office, we ensured our communication security at maximum level. *O XF IBWF TUBSUFE XPSLƌOH PO BVUPNBUƌD DPNNVOƌDBUƌPOXƌUI16."4PGUXBSF(#48FIBWFCFFO working the first step, generating orders automatically by this software. Now we have reached to the point that we BSFBCMFUPSFDFƌWFBOEUSBOTGFS(#4EBUBBVUPNBUƌDBMMZUP (*;4PGUXBSFBOEDSFBUFPSEFST We are able to receive barcode data automatically from (#4BOEQSƌOUUIFNCZ(*;4PGUXBSFBUUIFQSPEVDUƌPOTƌUF without any mistake. It is being delivered an alert to the related parties automatically by GIZ software when the actual production lead time exceeds initially planned production lead time. Again the alert is being delivered to the related parties automatically for the fabric and accessory orders which are not completed on time. For the items that are being worked with constant inventory, the levels of minimum and critics inventories are determined and it is achieved to keep up them at certain levels by mail alert system of GIZ software. Warning system send alerts for administrative manufacturing process delays and errors as well. We gain experience with our mistakes we made 8F EP ,Bƌ[FO TUVEƌFT UP NBƌOUBƌO BDDVSBUF QSPEVDUƌPO and avoid committing same mistakes. The software part of this study are being constructed in accordance with the ideas concluded after long terms studies.While we are developing GIZ software, we started XƌUIEƌHƌUBMGPMMPXVQTUVEƌFTBUPVS"KBSB$PNQBOZ Using GIZ production performance program which has CFFO TUBSUFE UP EFWFMPQ CZ BU "+"3" UPEBZ XF can see the production numbers for each line with only NƌOVUFEFMBZ (ƌ[1SPEVDUƌPO1FSGPSNBODF1SPHSBNXIƌDIƌTDPNQMFUFMZ based on lean production rules, can monitor the rise and drop at the productivity of each line simultaneously This system which is established to monitor line performances can also be utilized to measure the performance of the employees. Those devices which are for determining the performance’s has been developed CZ-05&MFDUSPOƌDVOEFSTVQFSWƌTƌPOPGPVSUFDIOƌDBMUFBN We have ordered to develop a production quality control QSPHSBNUP(*;40'58"3&BUUPNFBTVSFUIFRVBMƌUZ ratios. SUSTAINIBILITY MANAGEMENT We have placed control buttons on each quality control UBCMFT UIBU XPSL XƌUI VQUP EƌòFSFOU GBVMUT 4P UIF ratios and types of the defaults can be monitored simultaneously using this system.In order to ensure ease PGVTFGPSUIFCVUUPOT-05&MFDUSPOƌDƌTTUƌMMXPSLƌOHPO EFWFMPQNFOUTUISPVHI 0UIFSUIBOQSPEVDUƌPOUSBDLƌOHƌOƌUƌTTUBSUFEUP develop new software to gather all the factory audits under single software base and all audit data of the factories is collected under GIZ inquiry software program. ([ 1FSTPOOFM USBDLƌOH QSPHSBN UIBU XƌMM CF EFWFMPQFE UISPVHIƌTQMBOOFEUPCFƌOVTFƌOUIFGƌSTURVBSUFSPG this year. This way, all group companies will be gathered under a single program , and the manuel data entries of Gız production performans program which is entegrated with lean production will become automatic. Next year, the study of integration of all programs with GIZ BDDPVOUƌOHQSPHBNXƌMMCFTUBSUFE%ƌTDVTTƌPOTBMSFBEZ ƌOƌUƌBUFEUPDSFBUFBQPMMUPTUVEZPOUIFTVCKFDU0VS HPBMƌTCZFOEPGUPHBUIFSBMMBDUƌWƌUƌFTVOEFS a single software program with the support of management All barcodes on cards, packing bags and parcels are informed to packing EFQBSUNFOU CZ .31 TPGUXBSF BOE packing department receives directly from the system and QSƌOUTUIFCBSDPEFT%VSƌOH the packing loading processes, the number of parcels loaded are counted and recorded digitally. Communiitty 36 STAKEHOLDERS %ƌBMPHVFXƌUI4UBLFIPMEFST We would like to reach to our foremost partners in an understandable manner. We identified our partners as following: t$VTUPNFST t&NQMPZFFT t4IBSFIPMEFST t4VQQMJFST t/POHPWFSONFOUBM0SHBOJ[BUJPOT t"VUIPSJUJFTBOE-FHJTMBUPST 8FBSFUSZJOHUPCFJODPOUBDUXJUIPVSQBSUOFSTPOWBSJPVTJTTVFTJONBOZXBZT In order to get feedback on customer expectations PO JTTVFT MJLF QSPEVDU RVBMJUZ XF DPNF UPHFUIFS WJB TVSWFZT NFFUJOHT BOE GBDF UP GBDF EJTDVTTJPOT 8F NFBTVSF DVTUPNFS TBUJTGBDUJPO SFHVMBSMZ XIJDI JT B highly important indicator for science. (FOFSBM"TTFNCMZBOE #PBSE.FFUJOH "OOVBM&WBMVBUJPO .FFUJOHTBOE.JEUFSN 3FWJFX.FFUJOHT &NBJMBOE5FMFQIPOF 4VHHFTUJPO#PY Daily Communication Meetings Cooperation Weekly Department Meetings $VTUPNFS4BUJTGBDUJPO 4VSWFZ $PNNVOƌDBUƌPO$IBOOFMTXƌUI0VS4UBLFIPMEFST We encourage our suppliers to comply with principles of business ethics. 8F TIBSF PVS TUSBUFHJFT QPMJDJFT UBSHFUT BOE FYQFDUBUJPOTWJBNFFUJOHTWJTJUTBOEBVEJUT 8F TVQQPSU UIF EFWFMPQNFOU PG TPDJFUJFT UIBU XF EP 5P NPUJWBUF BOE GBDJMJUBUF FNQMPZFFT QBSUJDJQBUJPO JO business by maintaining our ties with local and central NBOBHFNFOUXFBSFBQQMZJOHTVHHFTUJPOTBOETVSWFZ HPWFSONFOUT3FHBSEJOHUIFEJòFSFODFTJOUIFTPDJFUJFT TZTUFN8FDPOEVDUBOBOOVBMTBUJTGBDUJPOTVSWFZ we keep our relationship with related institutions in an 8F PSHBOJ[F HFOFSBM NFFUJOHT UP EJTDVTT DPSQPSBUF understanding of transparency and mutual trust. BDUJPOT EFDJTJPOT PG CPBSE BOE FYDIBOHF JEFBT XJUI stakeholders. 37 STAKEHOLDERS Management Dialogue %FBS1BSUOFST 8F IBWF TUBSUFE QVCMJTIJOH PVS SFQPSUT JO BOE EFDMBSFE UP QVCMJTI JO FWFSZ UXP ZFBST :PV XJMM TFF the performance of a company trying to grow rapidly BOE QBSBMMFM UP UIJT HSPXUI USZJOH UP JOTUJUVUJPOBMJ[F OFHBUJWFMZPSQPTJUJWFMZIFSFJOPVSTFDPOESFQPSU When we first started working on our sustainability SFQPSU JO 4QSJOH XF SFBMJ[FE UIF JNQPSUBODF PG TVTUBJOBCJMJUZFWFOCFGPSFUIFXSJUJOHQSPDFTT4UBSUFE XPSLJOH XJUI B DPNQMFUFMZ OFX UFBN XF TBX UIBU NBOBHFNFOU PG EBUB DPMMFDUJPO QSPDFTT QSFQBSBUJPO prior to writing and process of writing is a tough journey. We appreciate the support of our Chairman and board members during this tough journey. "GUFSQVCMJTIJOHPVSöSTUSFQPSUXFTUBSUFEFWBMVBUJOH all management issues including production in a TVTUBJOBCMFNBOOFS*ONZQFSTPOBMPQJOJPOJUJTBGBDU UIBU TJODF UIF CFHJOOJOH PG UFYUJMFT EFWFMPQNFOU XF are conditioned to focus on more production and better RVBMJUZ "GUFS UIFi4VTUBJOBCJMJUZ JO5FYUJMFw $POGFSFODF IFME JO PVS DPNQBOZ XF SFBMJ[FE UIBU UIFSF XBT TPNFUIJOHNJTTJOHJOPVSQSPEVDUJPOQSPDFTT8FIBWF CFFOUBLJOHTVTUBJOBCMFQSPEVDUJWJUZJOQSPEVDUJPONPSF TFSJPVTMZGPSUIFMBTUZFBST8FHJWFNPSFJNQPSUBODF UP -FBO 1SPEVDUJPO 5SBJOJOHT JO PVS GBDUPSJFT 5IFTF trainings not only allows us to lower costs and increase UIFQSPEVDUJWJUZCVUBMTPSFEVDJOHUIF$0FNJTTJPOT QFSVOJUQSPEVDUBOETBWJOHUIFOBUVSF This report is prepared by the support of all departments PG.JMUFLT5FYUJMF"KBSB5FYUJMFBOE$FTFLB5FYUJMF%BUB collection/compilation process is completed by Head PG4VTUBJOBCJMJUZ5FBN"TBNFNCFSPGUIJTUFBN*IPQF XFHBWFIJNUIFTVQQPSUIFOFFEFE"GUFSQVCMJTIJOH UIF SFQPSU PVS UFBN XJMM CF NFFUJOH SFHVMBSMZ BOE EJTDVTTJOH UIF QPTTJCMF BQQMJDBUJPOT BOE FDPOPNJD TPDJBMBOEFOWJSPONFOUBMBTQFDUT I appreciate the assistance of factory managers and our SFQPSUDPOTVMUBOU4FSQJM(VSDJGSPN4ZTUBJO$POTVMUBODZ during the process of creating this report. #FTU3FHBSET Hasan Gundogdu Milteks Textile Deputy General Manager 38 STAKEHOLDERS 4UBLFIPMEFST2VFTUƌPOBSƌFT *OUIFGPMMPXJOHQBHFTXFIBWFJODMVEFEDPNNFOUTGSPNTQFDJöDTUBòUIBUIBWFTVCTUBOUJBMFYQFSJFODFTXPSLJOH XJUI.JMUFLT5FYUJMFBOEUIVTQSPWJEFNVMUJGBDFUFEDPNNFOUTXIJDIXFCFMJFWFXJMMIFMQUIFSFBEFSTPGUIFSFQPSU UPVOEFSTUBOENPSFBCPVU.JMUFLT5FYUJMFTGSPNBQFSTPOBMQFSTQFDUJWF 8FIBWFBMTPJODMVEFEDPNNFOUTGSPNTFMFDUFETVQQMJFSTDVTUPNFSTBOEDPNNVOJUZHSPVQTUPTFFIPXXFBSF WJFXFEGSPNUIFJSQFSTQFDUJWF -FWBO7BSTIBMPNJE[F "VUPOPNPVT3FQVCMJDPG"EKBSB(FPSHJB)FBE0G(PWFSONFOU healthy competition and for the budget incomes and employment. $PNQBOZIBTJOWFTUFE64%GPSDPOTUSVDUJPOPG UXPGBDUPSJFTBOEIBTFNQMPZFEBCPVUQFPQMF 5IF HPWFSONFOU PG "EKBSB TVQQPSUT BOZ QSPKFDUT DPOOFDUJOH XJUI EFWFMPQNFOU PG NBOVGBDUVSJOH TFDUPS QSPWJEFEJODSFBTJOHUIFOVNCFSPGFNQMPZFFT8FUIJOL IBWJOHZPVSPXOFMFDUSJDJUZHBJOFECZUIJTXBUFSUSJCVOF QSPWJEFTEFDSFBTJOHQSPEVDUJPOFYQFOTFTBOEHVBSBOUFF of sustainable production. Company is an honest taxpayer and has completely GVMöMMFE JUT DPNNJUNFOUT "T XF BSF JOGPSNFE i"KBSB 5FYUJMFwSFDFJWFE*40DFSUJöDBUF 8FLOPXUIBUUIFGBDUPSZQFSJPEJDBMMZQSPWJEFTFNQMPZFFT CZ SFMFWBOU TUBò USBJOJOHT *U IBT FNQMPZFE BCPVU "KBSB 5FYUJMF -UE FTUBCMJTIFE JO JT SFQSFTFOUFE JO QFPQMF :PVS DPNQBOZ JT POF PG UIF UPQ FNQMPZFS UIFGPSNPGPVUQVUNBOVGBDUVSFSPGi1VNBwJOUIFWJMMBHF companies in our region. #PCPLWBUJ,PCVMFUJNVOJDJQBMJUZ 5IF(PWFSONFOUPG"EKBSB"3XJMMCFQMFBTFEUPTVQQPSU #Z *NQMFNFOUBUJPO PG TVDDFTTGVM QSPKFDUT DPNQBOZ you in the case of starting new projects in manufacturing IBT NBEF B IVHF DPOUSJCVUJPO JOUP EFWFMPQNFOU PG sector. SFHJPOT FDPOPNZ BOE BMTP JT JNQPSUBOU GPS DSFBUJPO PG STAKEHOLDERS Jurgen Mahn(MPCBM4PVSDJOH%JSFDUPS"QQBSFM1VNB8PSME$BU-UE - :KDWGR\RXWKLQNDERXWWKHEXVLQHVVUHODWLRQVKLSZLWK0ø/7(.6":KDWDUH your recommendations to make your business relationship with our company more SURGXFWLYHDW0DQDJHPHQWDQGHPSOR\HHOHYHO" “Already very productive and fully aligned. Price is always an issue so on top of our current service level regarding development and production additional efforts I order to stay competitive are always appreciated. Regular meetings need to take place just to align strategy, but this is already in place.” - Do you think that Milteks exhibit an exemplary behavior with the projects of FOLPDWHFKDQJHLVVXHV"'RHV\RXURUJDQL]DWLRQKDYHVXFKDYHQWXUH" “Carbon footprint and ways to reduce this is key more than ever. We only have this planet so we need to protect it accordingly. All this is overdue already, but it is never too late so we need to do things more focused and faster.” - +RZFDQ\RXLQ\RXURUJDQL]DWLRQFRQWULEXWHWRKHOS0ø/7(.6WREHFRPHD PRUHVXVWDLQDEOHFRPSDQ\":KDWSRLQWVRIFRQWDFWGR\RXVHH" “There is a lot we can do together as a Team. Contact points we got plenty,… Planning the business better would be a key criteria for me.” :WPOOF)BIO( )FBEPG1SPEVDU&3*."(NC) - :KDWGR\RXWKLQNDERXWWKHEXVLQHVVUHODWLRQVKLSZLWK0ø/7(.6" “We have a very good and professional relationship. Milteks is doing an excellent job at management and also employee level. All requests from our side are worked out promptly and precise. Prices are competitive and deliveries are always in-time and in good quality.” - :KDWFKDUDFWHUL]HVDVXVWDLQDEOHFRPSDQ\LQ\RXUH\HVwhen does a FRPSDQ\RSHUDWHLQDVXVWDLQDEOHZD\":K\" “The character of such a company is that they do not only think about today or tomorrow. They think about the future in reference to the nature/climate and to the people (employees). They have social and nature projects and support the organizations who invest in that as well. Such as social human projects in other countries, building up forests for a better climate and so on.” - ,I\RXKHDUWKHZRUGV0ø/7(.6DQGVXVWDLQDELOLW\LQRQHVHQWHQFHZKDWGR\RXWKLQN" “MILTEKS is a perfect example for social and nature sustainability, they do not only think about earning money with their business they also think about giving back a part of the money and success to the nature and other people.” STAKEHOLDERS %JMFL&SHFO(1VNB4OS)FBEPG"QQBSFM4PVSDJOH&&.&" - :KDWGR\RXWKLQNDERXWWKHEXVLQHVVUHODWLRQVKLSZLWK0ø/7(.6" “Milteks, is a very committed, reliable and cooperative partner for us and we have a very professional biz relationship built on these values.” - +RZFDQ\RXLQ\RXURUJDQL]DWLRQFRQWULEXWHWRKHOS0ø/7(.6WR EHFRPHDPRUHVXVWDLQDEOHFRPSDQ\":KDWSRLQWVRIFRQWDFWGR\RX VHH" “We always guide and encourage Milteks to participate in sustainable SURMHFWVDQGDSSURDFKIRUXVLQJPRUHDQGPRUHVXVWDLQDEOH¿EHUVLQ production. We innovate and guide for increasing the level of sustainable processes in the production areas, we offer alternative solutions and help them to get in contact with rights people to develop and evolve further, and we also perform audits at their factories and increase the level of quality as well as incredibility.” 0MHVO"ZEO (1VNB4BGF)VNBOJUZ&DPMPHZ"VEJUPSBOE3FTQPOTJCMF'PS$POUJOVPVT*NQSPWFNFOU 16."4&8PSME$BU&VSPQF#SBODI*TUBOCVM - :KDWGR\RXWKLQNDERXWWKHEXVLQHVVUHODWLRQVKLSZLWK0ø/7(.6" “More roundness, Deep professional communication, Unprejudicedness. More cooperation, Proper and sustainable supply-chain management.” - :KDWFKDUDFWHUL]HVDVXVWDLQDEOHFRPSDQ\LQ\RXUH\HVZKHQGRHVD FRPSDQ\RSHUDWHLQDVXVWDLQDEOHZD\" “Fairness, Honesty, Positiveness and Creativity, Economical, ecological and socialy in compliance, Social and corporate responsibility, Working conditions, and Reporting sustainability.” - :KDWDUHWKHNH\FULWHULDIRU\RXUSXUFKDVLQJGHFLVLRQV" “Functionality, Manufacturing conditions and Service.” STAKEHOLDERS "OESFB5PNBU$FPPG-PUUP :KDWGR\RXWKLQNDERXWWKHEXVLQHVVUHODWLRQVKLSZLWK0ø/7(.6" What are your recommendations to make your business relationship with our company more productive at Management DQGHPSOR\HHOHYHO" “Our business relationship are satisfactory due to reliability of delivery dates and total supply chain visibility starting from fabrics DYDLODELOLW\XSWRSURGXFW¿QLVKLQJVRWKDWLQYROYHPHQWRIRXU Quality Assurance inspectors can be effectively planned.” +RZFDQ\RXLQ\RXURUJDQL]DWLRQFRQWULEXWHWRKHOS0ø/7(.6WR EHFRPHDPRUHVXVWDLQDEOHFRPSDQ\":KDWSRLQWVRIFRQWDFWGR \RXVHH" “We have already developed products more and more respecting environment and workers health starting from materials and fabrics up to treatment and printing processes. This path has to be continuously stimulated between partners like Milteks and Lotto driving product innovation towards new fronteers.” 'R\RXWKLQN0LOWHNV7H[WLOH*URXSLVFRPPLWWHGWREDVLFSULQFLSOH RIVXVWDLQDELOLW\DQGWRIXO¿OOLQJLWVFRUSRUDWHUHVSRQVLELOLWLHV" “AOOWKHIHHGEDFNV,UHFHLYHGDUHDFOHDUFRQ¿UPDWLRQWKDW0LOWHNVLVFRPPLWWHGWRIXO¿OOLWVFRUSRUDWH responsibilities with respect to social sustainability.” $FOL#P[("EJEBT%JSFDUPSPG3FHJPOBM1MBOOJOHBOE1VSDIBTJOH What do you think about the business relationship with 0ø/7(.6" “Although we have just started working with Milteks, we appreciate the spirit and importance Milteks management give to the job. Our requests – questions are responded timely. We believe that Milteks will deliver goods on time with right quantity and quality. We would like to meet and have open communication also with other employees of other levels.” STAKEHOLDERS 4VQQMZ$IBJO -JEFS5FYUJMF "UUIFCFHJOOJOHPGPVSKPVSOFZXJUI.JMUFLTXFUIPVHIU those procedures imposed were tough and formidable. )PXFWFSXFTFFUIFFWFOUTIBTDIBOHFEBOEEFWFMPQFE JO PVS GBWPS QSPVEMZ 3FTUSVDUVSFE BDDPSEJOH UP 4"'& TUBOEBSETPVSDPNQBOZSFDFJWFEPOBVEJUT 8FTFFUIJTSFTVMUBTBTVDDFTTGPSBDPNQBOZPVSTJ[F*O PVSNPOUIMZNFFUJOHTUIFTFJTTVFTBSFQVUPOPVSBHFOEB and implemented by discussing proposals and solutions. 8FTJODFSFMZJOGPSNUIBUXFXJMMTIPXHSFBUFòPSUUPHFU better. POPDDVQBUJPOBMIFBMUIBOETFDVSJUZJTTVFT"HPPEMPPLJOH BOEEFDFOUXPSLJOHFOWJSPONFOUJTDSFBUFE 8F BSF NPSF TFOTJUJWF PO XPSLFS IFBMUI BOE TBGFUZ " contract is signed with occupational physician. Health PóDFST BSF HJWFO UIF OFDFTTBSZ USBJOJOHT BOE DFSUJöFE " IFBMUI PóDFS JT BTTJHOFE UP FWFSZ XPSLFST 1PSUFS testing is performed for refectory workers and a procedure is prepared to apply this test regularly in standard periods. Personal files of employees are prepared carefully. Chest 93BZT BSF UBLFO PG BMM FNQMPZFFT BOE IFBSJOH UFTUT BSF 8F BSF NPSF TFOTJUJWF PO PDDVQBUJPOBM IFBMUI BOE EPOF5SBJOJOHTPOXPSLFSIFBMUIBOETBGFUZBSFHJWFOCZ TBGFUZJTTVFT8FCPVHIUMPDLFSTGPSBMMTUBò8FCPVHIU professional consultants. QSPUFDUJWFPQFSBUPSDBQTBOENBEFJUDPNQVMTPSZ8FDBO 8FBSFNPSFTFOTJUJWFPOFOWJSPONFOUBMJTTVFT(BSCBHF say that; machines and other equipments are periodically bins are placed in appropriate places in the building. We NBJOUBJOFE DPOUJOVJUZ PG QSPEVDUJPO JT FOTVSFE BOE signed agreements with certified companies that are UIFSFGPSF IVNBO MJGF BOE RVBMJUZ PG MJGF BSF HJWFO NPSF able to deal with separation of wastes and recycling. We WBMVF 'JSF TBGFUZ QSFDBVUJPOT BSF UBLFO BOE OFFEFE are trying to separate and collect the wastes in order to FRVJQNFOU JT QMBDFE &NFSHFODZ UFBNT BSF PSHBOJ[FE QSPUFDUUIFOBUVSFBOENJOJNJ[FUIFIBSNGVMFòFDUT BOEPVSTUBòJTUSBJOFECZQSPGFTTJPOBMT/PJTFJOEPPSBJS quality and dust are measured and risk assessments are We thank Milteks Management for their contribution to DBSSJFEPVU0VSTUBòJTUSBJOFECZQSPGFTTJPOBMDPOTVMUBOUT become a company in international standards. 4BNQJZPO4QPSUT We are happy to see that the factors seen to be extremely challenging and formidable in the beginning are now in PVSGBWPS5PFYFNQMJGZMFECZ.JMUFLTXFDSFBUFEBWFSZ CFOFöDJBM PSHBOJ[BUJPOBM TUSVDUVSF JODMVEJOH TPMVUJPOT and suggestions on important issues determining the CVTJOFTTBHFOEBPDDVQBUJPOBMIFBMUIBOETFDVSJUZ FNQMPZFFTQSPCMFNTBOEFWBMVBUJPOPGDPNQMBJOUTOPUJDF CPBSETBSFCFJOHVTFENPSFBDUJWFMZ *OEPPS BJS RVBMJUZ UFTUT EVTU NFBTVSFNFOUT BOE SJTL BOBMZTJT BSF DBSSJFE PVU JO UIF DPNQBOZ "DDPSEJOH UIF SFTVMUTQSFDBVUJPOTBSFUBLFOBOESJTLTBSFSFNPWFE5IF MBTUBVEJUJTNBEFPOUIPG"VH 8JUI B SFDPOTUSVDUJPO JO PSEFS UP CF BXBSF PG UIF 43 STAKEHOLDERS ½LLFǵ,BS (:,,5VSLFZ(FOFSBM.BOBHFS +RZFDQ\RXLQ\RXURUJDQL]DWLRQFRQWULEXWHWRKHOS0ø/7(.6WREHFRPHDPRUHVXVWDLQDEOHFRPSDQ\" “Always one step ahead as partnership relations” Cüneyt Gülkanat½[UBO-BCFM.BOBHFS :KDW GR \RX WKLQN DERXW SURGXFW FRPSODLQW SROLF\ UHFODPDWLRQ RI 0,/7(.6"$UH SUHYHQWLQJ IDFWRUV DQG FULWHULD HQRXJKIRU\RX" “Milteks is sensitive enough on each stages of production and asks suppliers to act accordingly. Today, understanding of production quality requires this method of working and any other way is not acceptable. Accordingly, necessary production controls are done and quality tests required by produced brand are carried out. :KDWDUHWKHLPSRUWDQWULVN\HOHPHQWVRI0LOWHNV¶IXWXUHORQJWHUP¿QDQFLDOVXFFHVV" “MLOWHNVVKRXOGLQFUHDVHWKHGLYHUVLW\RIWKHSURGXFWVDQGKHDGWRSURGXFWVDQGLWHPVZLWKKLJKHUSUR¿WDELOLW\ Likewise, in supply chain, should coordinate with companies that offer the required quality with more affordable prices. Against cheaper prices of Far East, Milteks should make faster and high quality production to gain advantage.” ---:KDWDUHWKHEDVLFFKDOOHQJHVWKDWPD\LQWHUIHUHZLWK0LOWHNV¶UHFRJQLWLRQDQGDFFHSWDQFHDVDVXVWDLQDEOHFRPSDQ\" “Sustainability brings along a cost and some long procedures. Meeting this cost and following the required VWDJHVIRUDORQJWLPHPDNHVLWGLI¿FXOW” :BLVQ"ǘDB 4BEB5FLTUJM$IBJSNBOPGUIF#PBSE *I\RXKHDUWKHZRUGV0ø/7(.6DQGVXVWDLQDELOLW\LQRQHVHQWHQFHZKDWGR\RXWKLQN" “Fersan considers itself as more than a supplier of MilteksTextile – we are a strategic partner working with them to help them achieve their goals. I have been working for the company for more than 23 years We know that they are an innovative and quality-oriented company with a clear focus on the total costs of production rather than simply on the unit costs of the products we supply. Milteks’s active driving in Sustainability in the industry is highly appreciated, as well as their generously sharing of sustainable practices in textiles and garment industry.” .FMUFN6TBM (4UBNQB5FYUJMF0XOFSPGUIF$PNQBOZ)FBEPGUIF2VBSUFS :KDWGR\RXWKLQNDERXW\RXUEXVLQHVVUHODWLRQVKLSZLWK0ø/7(.6" “Trustworthy, busy, sometimes stressful, scheduled payments. Meetings should be organized at the beginning RIHDFKVHDVRQLQRUGHUWRZRUNPRUHHI¿FLHQWO\8QFHUWDLQWLHVVKRXOGEHHOLPLQDWHGDVSRVVLEOH” :KDWGR\RXWKLQNDERXWSURGXFWFRPSODLQWSROLF\UHFODPDWLRQRI0,/7(.6" “We believe that appropriate quality control methods are applied in product complaint policy. ---:KLFKEUDQGSXUFKDVHURUWH[WLOHSURGXFWZRXOG\RXGH¿QHDV³VXVWDLQDEOH" “100% cotton organic, Adidas, Puma, Marks & Spencer” :KDWDUHWKHTXDOLWLHVWKDWDFRPSDQ\VKRXOGKDYHLQRUGHUWRRSHUDWHLQVXVWDLQDEOHFRQGLWLRQV" “To be strong in customer reliability and diversity, quality, organized communication, a strong dialogue with VXSSOLHUJOREDOLQWHJUDWLRQLQWHUQDWLRQDOFRPSHWLWLYHQHVVVDWLVIDFWLRQRIHPSOR\HHVWURQJ¿QDQFLDOVWUXFWXUH JLYLQJLPSRUWDQFHWRWHFKQRORJ\ÀH[LEOHSURGXFWLRQDQGHQYLURQPHQWDOFRQVFLRXVQHVV” 44 STAKEHOLDERS 0VS.BUFSJBMBOE 4FSWJDF1SPWJEFST "DDFTTPSZ :,, "WFSZ%FOOJTPO $PBUT )PCCZ&UJLFU %VSBL*QMJL 0[UBO&UJLFU .POEJ,BHUDML 7PMLBO.BUCBBT 7FUBǵ1MBTUJL "EB1MBTUJL 1SJOU&NCSPJEFSZ)FBU5SBOTGFS 45".1"#BTL ",#6-65/BLJT #&:%63#BTL 'BCSJD 4"%"5FYUJMF ."34"/5FLTUJM ."5&4"5FLTUJM 4VCMJNBUJPOQBQFS 53"/4'&35&9 .BDIJOF5FDIOPMPHZ +6,* "45"Ƶ 45 STAKEHOLDERS &NQMPZFF%JBMPHVF 8FCFMJFWFUIBUFòFDUJWFFNQMPZFFDPNNVOJDBUJPODBOJNQSPWFFóDJFODZBOEQSPEVDUJWJUZUISPVHIUIFDSFBUJPOPGB DPIFTJWFPSHBOJ[BUJPOBOEFOTVSFUIBUBMMPVSFNQMPZFFTBSFXPSLJOHUPHFUIFSUPXBSETBDPNNPOHPBM Are you satisfied with your working hours? Are you working over-time very often? Do you believe that Milteks protects and offers all social rights protected by law? Do you think that your suggestions and complaints are taken into consideration by Human Resources? Is any feedback provided about your suggestions and complaints? Are you aware of the steps taken to protect the environment in your workplace? Satisfied 94% No 86% Not Satisfied 6% Yes 14% Belive 92% Do Not Belive 8% Happy to be taken into consideration 90% Not fully satisfied for the adjustments 10% Aware of the activities 65% Heard that but not familiar with it 35% Aware of the activities 65% Heard that but not familiar with it 35% Are you satisfied with your working hours? Do you make any attempt to protect the nature? Would you like to learn more about things that can be done for protecting the nature? 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Environmental Responsibilities Environmental Policy For our children’s future we have to protect the environment, this is an important challenge and it should begin in our work place. We apply our Environment Management System to change the environmental conditions at our level, and change periodically our system. Our sensitivity to the environment is constantly improving. We can present our environmental regulation as follows: All environmental laws are applied. Our entire production project includes the environmental consideration, by taking into account environmental impacts that permit us to reduce the damages. Our electricity, fuel, water, or other basic needs supplies are subject to measures to reduce consumption. We strive to reduce our wastes by taking in account in our production process. To succeed our environmental actions, our employees receive periodically a specific training 52 Eco-Tex This label guarantees ecological standards of textiles during production. It promotes product responsibility and consumer health. Water Turbine We are glad that we contributed to reduce power outages due to emerging economy and infrastructural deficiencies. Ajara Textile Bobokvati factory is established on an old tea factory in Georgia. It is restored keeping the original structure and made ready for production. This renovation is completed without cutting any trees and without harming the nature. Average annual production of factory is 3,5 million pieces and average 600 people are employed. Added value of this production to Georgian economy and family’s of employees cannot be underestimated. The earth is warming rapidly after the 20th century. Perhaps, one of the most important reasons is deterioration of ecological balance. Since sustainability of production is not inspected, pollution has been growing rapidly and the world is being polluted more and more with in order to meet the energy deficit with population growth. 53 WATER TURBINE Having the grits subsided in deposit pool, water moves forward for 650 meters in open channel and enters the turbine after a 30 meters penstock. Largest amount of fuels used for electricity production are nuclear and fossil fuels. Use of these fuels is ruining the ecological balance. Nuclear pollution and atmospheric pollution rates are threatening the biological life. According to authorities, lack of oxygen is the main reason of many diseases. For these reasons, use of renewable energy sources and efficient use of natural resources should be supported by society. Milteks Group has always been searching for alternatives in accordance with sustainability as an investor. We keep researching for investments for a sustainable world in Turkey and other countries. Largest amount of fuels used for electricity production are nuclear and fossils fuels. Use of these fuels are running the ecological balance. environmental organizations strongly support Re-newable energy sources, solar panels, wind turbines, water turbines and the stilling basin. The most environment friendly system supported by environmental activists is producing electricity by draining the water directly into a turbine. Our project is a micro hydro-electric turbine with a stilling basin. In this project, only an appropriate amount of the stream is divided from its naturel path. Water is being directed through the height created by the channel and the water through the turbine return to water bed. Water amount taken into turbine is at the appropriate amount in Stream flow standards not to damage the natural balance around the creek. Our project is a micro hydro-electric turbine with a stilling basin. 54 WATER TURBINE Milteks Group, as a manufacturer aware of its responsibility, has been searching for renewable energy sources in order to compensate the natural harm it caused. Dagva micro water turbine building is opened by Head of Government of Adjara Levan Varshalomidze in September 2011. The creek next to the factory was determined to be the most suitable renewable energy source in Ajara region. It is found that the turbine was installed in the most suitable part of the river to the point where it reaches the sea. Inactive and old-technology turbine is purchased by Ajara Textile after a brief investigation. After purchasing, flow and velocity measurements are made by a company specialized in energy systems and 1 year change is investigated monthly. It is calculated that 100 KWh of electricity can be produced during the months, when water flow rate is highest. The entire project is designed according to these dimensions and it is predicted that current structure of channel is not appropriate for this production. Therefore, maximum production will be approximately 50 KWh. Dagva micro water turbine building is opened by Head of Government of Adjara Levan Varshalomidze in September 2011. 55 PROJECT CARBON FOOTPRINT Sustainability Strategy Project CARBON FOOTPRINT 56 Carbon dioxide equivalent calculation of Milteks Textile, Ceseka Textile and Ajara Textile are done by Systain as it was on 2009. Developed by WRI and WBCSD, GHG protocols including ISO 14040/44 norms are used for these calculations. Calculations done in every 2 years consist of ten months of 2009, November and December 2008, and first 9 months of 2011. So, over the years, amount on comparative charts is not valid. As calculation of unit carbon emission, only Ceseka and Ajara values may be significant. For Milteks is not producing in this sense, any unit comparison has no significance. Since the group companies are in a constant change for last 3 years, conditions required for comparative charts are not formed. As seen on the graphic above, carbon emissions per unit in Ceseka Textile are increasing. It seems that attempts to reduce carbon emissions could not be successful as a result of inefficient production after the investment in 2010 and low-volume production in 2011. On the other hand, Ajara Textile where same practices are done achieved great success in these studies. Instead of 0,189 kg CO2/unit on 2009, it was reduced to 0,13 kg CO2/unit on 2010. Since all the electricity and fuel used for construction of new building and the restoration of micro hydro-electricity power plant is added on Ajara Textile, emissions per unit seem to have increased extraordinarily in 2011. As a result of these data, Ajara Textile’s carbon emission value per unit is 0,17 kg CO2 in the year 2011. Ceseka Textile increased from 2700m2 to 3600m2 with additional facilities at beginning of 2010, and Milteks Textile increased to 11000m2 from 8000m2 in new building at the end of 2010. In addition to its factory with 11500 m2 closed area, Ajara Textile opened second factory with 2500m2 closed area, at the beginning of 2011. A separate calculation for energy consumed during dislocating and enlarging the factories is not considered as necessary. Therefore, discrepancies on energy consumption by years can be observed. Still, studies in order to reduce carbon emissions continuing regularly. PROJECT CARBON FOOTPRINT As seen on graphic above; the total emission value of Milteks Textile, Ceseka Textile and Ajara Textile is 1.437 tons of CO2 in 2009 ,and 1831,8 tons of CO2 in 2010. According to calculations of Systain, the total emission value of all companies on the first 9 months of 2011 is 1370,5 tons of CO2e. The distribution of total emission in the year 2010 is seen above. %53 of total emission of all factories which is 1831,8 tons is calculated as transportation emissions. Business trips, flights, employee shuttles and emissions of vehicles used for quality monitoring are also included. 57 PROJECT CARBON FOOTPRINT Corporate Carbon Emissions In order to reduce the vehicle emissions, vehicle requests are taken in e-mailing system and destinations are gathered, therefore, less vehicles are used for deliveries. Also, we are using teleconferencing and video conferencing systems for our meetings in order to use less vehicles. Vehicles in Milteks are mostly used for development and daily Standard sub-production controls. Daily controls do not change due to production amount. A certain number of standardized subcontractors do the contract manufacturing of Milteks. Although the production increased 90% in 2010 compared to 2009, kilometers of vehicles had been reduced to 5% after the measures taken. In return, while the distance per unit was 651 meters, it was decreased to 324 meters in 2010 and 307 meters in 2011. It decreased by 5% in 2011 compared to 2010. Cooperation at Sustainability Level At the beginning of 2010 Puma Safe introduced PUMA Sustainability Scorecard. This scorecard is composed of three elements that set supplier sustainability approach working toward the year 2015. The PUMA Sustainability Scorecard initiated ambitious goals for our suppliers to reduce 25% of their Environmental KPIs including water, waste and energy leading up to 2015. In order to ensure timely information on progress towards the PUMA Sustainability Targets for 2015 (25% increased efficiency) as well as the annual interim targets (5% increased efficiency) the data collection process will be repeated bi-annually. 58 Sensitivity to Ecologial Environment Energy Consumption Electricity Consumption per Unit Total electricity consumption has incrased 3% in 2011, compared to 2010. Although the production rate has decreased, there are several reasons for increased electricity consumption. 5% In Ceseka and Milteks, it is planned to decrease power consumption level 5% every year. and interior decoration, renovation in Ajara Textile, recruitment and trainings are not categorized. Therefore, since all of this consumption is divided into production number, consumption level per unit seems higher. At the same time, trainings are also carried out in order to meet the need for staff. Energy used for these trainings are also included in total energy. Production with newly-trained staff is low-efficient and therefore electricity amount per unit is increasing. It is expected to compensate this situation in second quarter of 2012 due to increasing orders with The Olympic Games and the EuroCup. Electricity consumption for Milteks Central Building Produced Pcs (1.000pcs.) ConsumpƟon Electricity (GJ) Cons. Elec. Per Unit ( KJ/pcs.) 9.000 7.000 5.000 3.000 1.000 2009 25% 25% of less power consumption is planned for 2016. 2010 2011 Since Ajara Textile will continue to invest for new factory in 2012, power consumption per unit is not expected to decrease. In Ceseka and Milteks, it is planned to decrease this level 5% every year and have 25% lower power consumption in 2016. 59 SENSITIVITY TO ECOLOGIAL ENVIRONMENT Fuel Consumption per Unit (kJ/pcs.) Thanks to measures taken in 2009 and 90% increase in orders, fuel efficiency per unit is seen to have improved 40%. 10% We transported more products with less than 10% trucks. Pieces (1.000pcs.) We are working on this issue in order to improve sustainability. Since the additional fuel consumption during construction of new building and new factory are not classified separately, fuel consumption per unit in 2011 has increased 20%. As seen on graphic above, the biggest increase was on direct fuel consumption. Fuel for equipment’s used in renewing the building and decoration are covered by factory. And also some shuttles in factories are purchased by company and indirect fuel consumption turned into direct fuel consumption. Compared to 2009, fuel consumption per unit has increased 18% in 2011. Direct (GJ) Indirect (GJ) per Unit (KJ) 8.000 6.000 4.000 2.000 0 2009 22% 60 With double trailer trucks, we reduced %22 CO2 emissions resulting by transportation. 2010 2011 It is a fact that we create a little environmental pollution due to vehicular traffic and use of generator in the area. However, it is also a fact that we would like to lead to economical, social and environmental developments and have a major contribution on the region’s growth. SENSITIVITY TO ECOLOGIAL ENVIRONMENT Water Consumption per Unit (lt/pcs.) Water 1.000 m³ Lt/pcs. 13,00 11,40 11,88 11,53 9,00 5,00 4,23 1,00 2009 2,32 2,34 2010 2011 The world population has tripled in the past century and it is expected to reach 9 billion increasing another 50%. Compared to last century, average 6 times more water is being consumed. According to the reports published by scientists, doubling water consumption in every 20 years is inevitable. Water is a requirement for all industrial activities. 20% of water sources are used for industrial activities. Rainfalls are reducing in many regions and due to climate change water sources are drying. Governments, non-governmental organizations and business world are worried about water problem of earth. Sustainability of industrial activities depends on efficient use and protection of water sources and innovative practices encouraging reusing, recycling and preventing natural or humaninduced loss of available water. 82% of water used in our companies is used for cleaning and personal needs. 5% is used for washing tests of fabrics and the washing up the dishes, about 3% is used for ironing. 33% of water is used in Ajara Factory. Ajara Textile draws utility water from the creek next to the factory. Drinking water is carried out by pipes laid from spring water. Spring water is analyzed regularly. Estimated values are given because there is no counter on drawn water. And since the water billing information is given in irregular periods in Turkey, water bills coming during the year are taken into account. Water consumption in 2010 has increased 4,2% contrary to 90% production increase. This amount decreased to 3% in 2011. Water drainage increased only 1% contrary to high increase on the production within two years. It is 45% improved as water drainage per unit is decreased from 4,23 Lt to 2,34 Lt. PUMA Sustainability Scorecard 2015 is a clear roadmap and presents the strong commitment to a more sustainable future. In order to achieve the targets with our factories, PUMA Sourcing cooperates with our business partners for development of factories towards an environmental friendly production set up and furthermore supports with capacity building projects, development of ‘green’ products, provides cooperation for research and NGO practice and creates a platform for Best Practice sharing and knowledge exchange. The team welcomes always new ideas, pro-active suggestions for new projects and innovative ways to push Sustainability to the next level. …. until we have achieved a carbon neutral textile production with no energy and water consumption and without waste generation, we can always continue to improve for a more sustainable future. All employees from top to bottom must be aware of Sustainability definition and values and act accordingly within daily working operations. A sustainable company knows about E-KPI performance and has established EMS system accordingly, a dedicated team headed by Sustainability manager drives the implementation of ecological projects and continues improvement and is integrated within the organization with direct report to top management. SONJA GOTTSCHLICH | Project Manager Sustainability APP World Cat Hong Kong Ltd. 61 SENSITIVITY TO ECOLOGIAL ENVIRONMENT Recycle Material Consumption (kg) Quantities of packages supplied are submitted to Ministry of Environment and Urbanization via “Waste Package Program” Under the Package Waste Control Regulation of Environmental Law every year since 2008. Recyclable production wastes are separated under the “Waste Management Procedure” and send to waste collection companies licensed by Ministry of Environment and Urbanization. Amount of packing wastes of the production separated for recycling are listed below: 1% Among total input, non-recyclable material rate is less than 1%. ZĞĐLJĐůĞWŽůLJĞƐƚĞƌ ĂƌƚŽŽŽdž tĞŝŐŚƚ tĞŝŐŚƚ ϭϴϴ͘ϯϱϱ ϭϭϬ͘ϲϴϯŬŐ͘ Ϯϭ͘ϭϬϱŬŐ͘ ϭϲϵ͘ϭϲϮ ϭϬϬ͘ϲϮϱŬŐ͘ ϰϭ͘ϰϭϲŬŐ͘ YƚLJ ϮϬϭϬ ϮϬϭϭ used for carton box is produced by waste papers. Some cellulose other than waste papers is used for craft paper pulp that is covering the inside and outside of box in order to provide endurance. Different waste paper rates can be used for craft paper production. The amount increases in cement bag, but decreases up to 10% in carton box. 99% of input used for production is recyclable materials. Stain remover chemicals and polyurethanes are nonrecyclable materials. Usage rate is less than 1%. Among the materials we use, the rate of recycled materials is about 8%. Unit weights of carton boxes are determined and converted into kilograms. Entire curved carton Material Consumption (kg) 1.000 <Ő͘ 0DO]HPHLoHULNOHUL ϭ͘ϮϬϬ ϲϯй 1.000 Kg Material Consuption Cotton Fabric Polyester Fabric Polyester Material Polyethylene 2010 2011 376 337 1.258 1.162 68 49 72 61 Paper 241 212 Others 26 14 ϭ͘ϬϬϬ ϴϬϬ ϲϬϬ ϰϬϬ Being used lower than 1%, metal, polyurethane (foam rubber), wood and other chemicals are stated as “other”. 62 ϭϴй ϮϬϬ ϯй ϯй ϭϮй Paper Polyethylene Polyester Material Polyester Fabric Others ϭй Ϭ Cotton Fabric All fabric units used in production are converted into kilograms. Weights of woven fabrics with meter information are calculated as unit weight * width * height = weight. Weights of all accessories are scaled with precision scales and average unit weights are calculated. An A4 paper pack of 500 pieces is calculated as (0,210 x 0,297 x 0,080 x 500 =2,5Kg.) The reason for paper usage in such a high level (13%) is due to fact that almost all packaging material is paper. SENSITIVITY TO ECOLOGIAL ENVIRONMENT Waste Management Our wastes are separated as Industrial waste, recyclable and recoverable in terms of “Waste Management Procedure” in cooperation with Environment and Urbanization Ministry licensed companies. Wastes are classified and monthly trends are monitored. Among these trends, “The amount of safe waste per unit” is followed as an indicator of performance. Our employees, suppliers, business partners and visitors are informed regularly in order to increase the efficiency of our waste management system. Disposing of mercury-containing lamps A variety of lamp types used in Turkey and Georgia require mercury to operate. Generally, the higher the power usage, the more mercury that is required to operate the lamp. Mercury containing lamps include: tIJHIJOUFOTJUZEJTDIBSHF)*% MBNQTTVDIBTNFSDVSZWBQPVSMBNQTVTFEGPSTUSFFUMJHIUJOHXIJDIDPOUBJO between 50 and 1000 milligrams (mg) of mercury tMJOFBSøVPSFTDFOUUVCFTBTVTFEJONPTUDPNNFSDJBMBOEQVCMJDCVJMEJOHTXIJDIBSFSFRVJSFECZ5VSLJTI standard to contain less than 15 mg tDPNQBDUøVPSFTDFOUMBNQT$'-T VTFENPTUMZJOIPNFTXIJDIBSFSFRVJSFEVOEFSBOFX5VSLJTI4UBOEBSE to have a maximum of 5 mg, and tTPNFOFPOUVCFTBTVTFEJOTJHOT An alternative to landfill disposal is taking mercury containing lamps to specialty recyclers who are able to safely recover not only the mercury, but also the glass, phosphor and aluminium contained in the lamps. Fluorescent lamps to be recycled in order to protect the life and save the resources 63 Eco-Friendly Approach Within our “Protecting the environment and reducing the use of natural resources” strategy, our applications are as follows: All phases of construction and equipment of the building are inspected by SGS. Around the entire building, SGS approved material used and thermal insulation is used. Highly insulated sandwich panels are used in roof construction. Calculations made during the project shows that 30% of energy will be saved. Solar energy panels are installed on new building of Milteks. This system meets the need of hot water of entire building. 64 ECO-FRIENDLY APPROACH Milteks Textile moved to its new building at the end of 2010. Floor plan of production departments is created under the supervision of a Lean Production Consultant. Thus, unnecessary transports within the building are totally eliminated and maximum saving of production costs achieved. Production departments are placed properly in the building and it is possible to send away the products to other production departments or manufacturers outside as soon as possible. All phases of construction and renovation of the building are inspected by SGS. All stages such as project’s compliance with international standard, quality check and amount of material used in building’s construction are inspected. Other than this, labor safety and health checks are also carried out by SGS. Exterior Exte Ex teri te rior ri or tthe thermal herm he rmal rm al sshe sheathing heat he athi at hing hi ng iiss ap appl applied plie pl ied ie d in ccon conformity onfo form fo rmit rm ityy it with wi th standards ssta tand ta ndar nd ards ar ds in in th the e co cons nstr ns truc tr ucti uc tion ti on o off th the e bu buil ilildi ding di ng. ng construction building. Acco Ac cord co rdin rd ing in g to tthe he calculations, ccal alcu al cula cu lati la tion ti ons, on s, 3 30% 0% o off en ener ergy er gy ssav avin av ing in g is According energy saving achi ac hiev hi eved ev ed aaft fter ft er tthe he tthe herm he rmal rm al iins nsul ns ulat ul atio at ion. io n. H Hea eati ea ting ti ng ssys yste ys tem te m achieved after thermal insulation. Heating system equi eq uipm ui pmen pm entt of b en bui uild ui ldin ld ing in g is ccom ompl om plet pl etel et elyy re el rene newe ne wed. we d. Fu Fuel el o oilil equipment building completely renewed. boiler is changed to highly efficient, condensing natural gas boiler. With the use of semiconductor ballast, 40% of energy saving for lighting achieved. Milteks Milt Mi ltek lt ekss Textile ek Text Te xtililile xt e is aaud audited udit ud ited it ed aacc according ccor cc ordi or ding di ng to to SA SAFE FE ssta standards tand ta ndar nd ards ar ds and received rece re ceiv ce ived iv ed Level LLev evel ev el A approval aapp ppro pp rova ro vall with va with %97,25 %97 % 97,2 97 ,25 ,2 5 percentage. perc pe rcen rc enta en tage ta ge.. ge and Milt Mi ltek lt ekss is d ek det eter et ermi er mine mi ned ne d to comply ccom ompl om plyy with pl with aallll tthe he ssoc ocia oc iall an ia and d Milteks determined social envi en viro vi ronm ro nmen nm enta en tall standards. ta stan st anda an dard da rds. rd s. LLab abor ab or ssaf afet af etyy an et and d he heal alth al th aare re environmental Labor safety health prio pr iori io riti ri ties ti es of of th the e company. comp co mpan mp any. an y. priorities Innavation and Sustainability Meet In Milteks By using Cloud System, 2 tons Milteks Textile, Ceseka Textile and Ajara Textile saves at least pieces of paper 2 tons of paper 400.000 in weight. When 1 ton of used paper is recycled; Cutting 17 pine trees, Releasing 36 tons of greenhouse gas CO to atmosphere ² Waste of 4100 kWh power, Releasing 267 kg pollutant gas to atmosphere, Waste of 1750 litres of fuel, Using more than 3 - 4 m3 storage 2 Destruction of 85 m2 forestland Waste of 38,8 ton water is PREVENTED. Cloud system is being used by many large corporations in recent years. This system is installed locally at the end of 2011 by Information Technologies Department of Milteks Textile Headquarters. With this system, briefly, detailed forms, unofficial documents, data of products on lines are documented digitally. Information can be reached any time with a categorized shareability. Printed-out documents are also stored in cloud and can be printed out. Only authorized users can access to information stored in our highly-secured server. Milteks is investing on information technology parallel to company’s growth. Thanks to this system, instant file sharing became possible for all manufacturers working with Milteks. Quick accessibility to documents without any problems is provided for group companies. Since there is no need for printing out, use of paper is decreased and group companies contributed to protecting the environment. By this means, instant changes can be controlled promptly from records. Eliminating the unnecessary readings fairly large labor is saved. 36 tons of greenhouse gas CO GIZ Software, with flexible and up to date infrastructure, provides a quick and accurate production. After expansion of Milteks investments, in order to meet the need for sharing production information, digital software is used rather than printed papers. Printed papers are only used for official documents of production movements. Software is developed regularly compliance with customers. Our aim is to provide required information to customers as soon as possible. Habits are changing depending upon expanding use of internet. These changes result in taking improving steps on environmental issues. Milteks Textile, Ajara Textile and Ceseka Textile are using at least 400.000 pieces of paper. Thanks to cloud system, except for saving paper, chemicals and electricity used for printing are also reduced. 65 Seed to to Sapling SSapling apling tto o TTree ree Project Project Milteks Milt Mi ltek lt ekss us ek used ed rec recycled ecyc ec ycle led le d pa pape paper perr fo pe forr ne new w ye year ar car cards. ards ar ds. Wi ds With th tthe he new ew cards, “seed cards” have seeds inside, year ye ar cards ds,, eco-friendly ds ecoec o-fr ofrie fr iend ndly ““se nd seed se ed car ards ds” th ds that at h hav ave av e seed edss in ed insi side si de,, de becoming planted, beco be comi ming mi ng flowers and tr trees wh when en p pla lant la nted nt ed, ar are e se sent nt to o ou ourr stak st akeh ak ehol eh olde ders. By this de thi hiss way, hi way, we we hope hope ttha hatt we h ha hel elp el p ch chil ilildr dren dr en aand nd stakeholders. that help children adults ad ts to un unde ders de rsta rs tand ta nd how ow m much time me and nd endeavor is n nee eede ee ded understand needed to g gro row ro w a tr tree. Ai Aim m of this tthi hiss pr hi proj ojec ectt is tto o ra rais ise is e en envi viro vi ronm ro nmen nm enta en tal ta grow project raise environmental awaren aw eness in the en he ssoc ocie oc iety ie ty, de deve velopi ping ng lov ove e of n nat ature, at e, o offe fferi ring o our awareness society, developing love nature, offering empl em ploy pl oyees and oy and stakeholders stak st akeh ak ehol eh olde ol ders a gift de gif g iftt of nature. if nat atur at ure. ur employees Dete De termin te inin in ing ou in our carbon carb ca rbon ffoo rb ootp oo tpri tp rint nt, we rem emin em ind d ou our Determining footprint, remind envi en viro vi ronm ro nmenta nm tall re resp spon sp onsibi on bilililiti bi ties es onc nce ag nc again wi with th tthi hiss pr proj ojec oj ect. t. environmental responsibilities once this project. We aass ssur ss ure that ur that w we are are well well aawa ware wa re o off ou ourr duty du ffor or fut utur ure ur e assure aware future genera ge rati ra tion ti ons an on and d we w willl no nott fo forg rget rg et o our respo ponsib ibilit ib itie ies du ie during ng generations forget responsibilities the th e produc uction. uc production. In ord rder rd er tto re redu duce du ce our our ccarbo bon fo foot otpr ot prin intt on n nat atur at ure ur e as a order reduce carbon footprint nature part pa rt o of ou ourr su sustai aina ai nabi na bililility bi ty app ppro pp roac ro ach, ac h, w we e cr crea eate ea ted te d “M “Milte teks te ks sustainability approach, created “Milteks Comm Co mmem mm emor em orat or ative at e Fo Fore rest” in Tekirdag re TTek ekirdag ek g on b beh ehal eh alff of our al Commemorative Forest” behalf stak akeh ak ehol eh olde ol ders de rs in n 20 2010 10 w whe here he re tthousan ands ds o off tr tree eess are ee are “greening”. “gre “g reenin re ing” in g”. g” stakeholders where thousands trees Led by TTEM Le EMA EM A Foundation, Foun Fo unda dati da tion ti on, th on thou ousa ou sand sa nds of ssap nd apling ap ngs ar ng are grow own ow n TEMA thousands saplings grown in K Kon onya on ya,, Ka ya Kara rapi ra pina pi narr on 2 na 201 011 01 1 un unde der “Com de omba om bati ting ti ng Soi oil Er oi Eros osio os ion” io n” Konya, Karapinar 2011 under “Combating Soil Erosion” project. pr t. M Milte teks te ks ccre reat re ated at ed a sustainable ssus ustainab able le effe ffect ct o on n co comm mmunityy wi mm with th Mi Milteks created effect community Milt ltek lt ekss chos ek ose e to u use se 1 100 00% 00 % recycled recy re cycl cled ed p pap aper ap erss in Milteks chose 100% papers soci so cial ci al res espo es pons po nsibility activities ns activi viti ties ti es aand nd w will co cont ntin nt inue in ue d doi oing. oi social responsibility continue doing. prom pr omotio ional item emss lilike ke not oteboo ooks oo ks and nd p pen enss in en promotional items notebooks pens 2011 20 11. 11 2011. Commemorative Forest In order to reduce our carbon footprint on nature as a part of our sustainability approach, we created “Milteks Commemorative Forest” in Tekirdag on behalf of our stakeholders in 2010 where thousands of trees are “greening”. 66 Led by TEMA Foundation, thousands of saplings are grown in Konya, Karapinar on 2011 under “Combating Soil Erosion” project. Milteks created a sustainable effect on community with social responsibility activities and will continue doing. 67 GRI Index 1.1 1.2 2.1 2.2 2.3 2.4 2.5 2.6 2.7 2.8 2.9 Strategy and Analysis Statement from the most senior decision-maker DescripƟon of key impacts, risks, and opportunŝƟĞƐ OrganŝƐĂƟonal ProĮle Name of the organŝƐĂƟon Primary brands, products, and/or services KƉĞƌĂƟonal structure of the organisaƟon LocaƟon of organŝƐĂƟon’s headquarters Number of countries where the organŝƐĂƟon operates Nature of ownership and legal form Markets served including geographic breakdown, sectors served, and types of customers/bĞŶĞĮciaries) 2 2,3 4 10,11 6 6 6,8,9 4 10,11 Scale of the repoƌƟng organŝƐĂƟon SignŝĮcant changes during the reporƟng period regarding size, structure, or ownership 1 2.10 Awards received in the repoƌƟng period 6,7,16,17 3.1 3.3 3.4 3.5 3.6 3.7 3.8 Report ProĮle RepoƌƟng period RepoƌƟng cycle Contact point for quesƟons regarding the report or its content Process forĚĞĮning report content Boundary of the report State any speĐŝĮc limŝƚĂƟons on the scope or boundary of the report Basis for repoƌƟng on joint ventures, subsidiaries, leased faciliƟes, outsourced opĞƌĂƟons and other enƟƟĞƐ 1 1 1 1 1 1 1 Data measurement techniques and the bases of calculĂƟons Table idĞŶƟfying the locaƟon of the standard disclosures in the report 1 68,69,70 3.9 3.12 68 1,6 4.1 4.2 4.3 Governance, Commitments and Engagement Governance structure of the organisaƟon Indicate whether the Chair of the highest governance body is also an exĞĐƵƟve oĸcer State the number of members of the highest governance body that are independent and/or non-exeĐƵƟve members 6 4,6 4 4.4 Mechanisms for shareholders and employees to provide recommendĂƟons or 37 dŝƌĞĐƟon to the highest governance body 4.7 Process for determining the qualiĮĐĂƟon and expĞƌƟse of the members of the highest governance body for guiding the organŝƐĂƟon’s strategy on economic, 2,3 environmental, and social topics 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 the implementaƟon 14,37,52 Procedures of the highest governance body for overseeing the organŝƐĂƟon’s idĞŶƟĮĐĂƟon and management of economic, environmental and social performance 6 4.11 ExplanĂƟon of whether and how the precauƟonary approach or principle is addressed by the organisaƟon 2,3,6 4.12 Externally developed economic, environmental and social charters, principles, 11,33 or other iniƟĂƟves to which the organŝƐĂƟon subscribes or endorses Membership in associaƟons and/orŶĂƟonal/internaƟonal advocacy 3,6,7,16,17 organŝƐĂƟons 4.9 4.13 4.14 4.15 List of stakeholder groups engaged by the organŝƐĂƟon Basis for idenƟĮĐaƟon and selecƟon of stakeholders with whom to engage 4.16 Approaches to stakeholder engagement, including frequency of engagement by type and by stakeholder group 37 4.17 Key topics and concerns that have been raised through stakeholder engagement, and how the organŝƐĂƟon has responded to those key topics and concerns, including through its repoƌƟng 39,40,41,42,43,44 10,11,45 37 69 EC1 EC4 EC6 EC7 EC8 18 SignŝĮcant Įnancial assistance received from government. Policy, praĐƟĐes, and propoƌƟon of spending on locally-based suppliers at signŝĮcant locaƟons of opeƌĂƟon 19 Procedures for local hiring and propoƌƟon of senior management hired from the local community at loĐĂƟons of signŝĮcant opĞƌĂƟon. 25 Development and impact of infrastructure investments and services provided primarily investments and services provided primarily for public benĞĮƚ through commercial, inkind, or pro bono engagement 50,51,56 EN1 EN2 EN3 EN4 EN5 EN8 EN16 EN22 Environmental Performance Materials used by weight or volume. Percentage of materials used that are recycled input materials Direct energy consumpƟon by primary energy source. Indirect energy consumpƟon by primary source. Energy saved due to conservĂƟon and eĸciency improvements Total water withdrawal by source Total direct and indirect greenhouse gas emissions by weight. Total weight of waste by type and disposal method. LA1 LA2 Social Performance: Labour PracƟĐes and Decent Work Total workforce by employment type, employment contract and region Total number and rate of employee turnover by age group, gender and region LA10 LA13 70 Economic Performance Direct economic value generated and distributed, including revenues, opeƌĂƟng costs, employee compensaƟon, donĂƟons and other community investments, retained earnings and payments to capital providers and governments Average hours of training per year per employee by employee CompoƐŝƟon of governance bodies and breakdown of employees per category according to gender, age group, minority group membership, and other indicators of diversity. stakeholder group 19 62 62 59,60 61 59,60,61 61 57 62 23 24 26 25 71 Milteks 2011 Sustainability Report conceptualized, designed and DTP by Milteks Textile. ©2011 Milteks. All rights reserved. www.milteks.com.tr Main Office & Factory : Milteks Tekstil Sanayi ve Ticaret A.Ş. Bakır ve Pirinççiler Sanayi Sitesi, Mustafa Kurdoğlu Caddesi, No:7, Beylikdüzü-Büyükçekmece- İstanbul-Türkiye Tel: 00902128761934 e-mail: info@milteks.com.tr Factory Fatsa : Ceseka Tekstil ve Konf. San. ve Tic. A.Ş. Fatsa Organize Sanayi Bölgesi, Parsel 561-562 Fatsa-Ordu-Türkiye Tel: 00904524238111 e-mail: info@ceseka.com.tr Factory Georgia 1 : Ajara Textile LTD. Bobokvati Village, Kobuleti- Batumi- Georgia 6200 Tel: 00995426262380 e-mail: info@ajaratextile.com Factory Georgia 2 : Ajara Textile LTD. Tbeti Str. 3, Tamara District- Batumi- Georgia 6000 Tel: 00995422250523 e-mail: info@ajaratextile.com