This sustainability report from SLN provides an overview of the company's operations and sustainability performance from 2010-2011. SLN is a leading Turkish textile and apparel company with 350,000 unit/month apparel production capacity and 15 tonnes/day dye production capacity. The report discusses SLN's approach to sustainability, stakeholder engagement, economic and environmental impacts, and social initiatives. Key highlights include investing in a new dye house to improve quality, speed and pricing, implementing lean production programs, and measuring water and carbon footprints to track environmental impacts.

1. GRI REPORT
2010-2011
Sustainability
Report
Sustainable Threads

2. 2010-2011
Sustainability Report

3. ABOUT US
ABOUT US
About Us
About this Report 3
Statement from the Executive Board 4
ompan ro le
SLN With Numbers 8
Our Approach to Sustainability 10
Corporate Governance 11
Vision and Mission 12
Sustainabilit in the Suppl Chain 12
Compan Goals 1
Stakeholder Engagement 18
ur Sta eholders and ialo ue rocess 1
ur rimar Sta eholders 1
eterminin our riorities 21
Economic Performance 22
Mana ement Approach to our Economic mpact 23
Economic ata 2
Product Responsibility 31
Social Performance 36
Mana ement Approach to our Social mpact 3
ur Suppl Chain and Contract Manufacturer olic 41
Emplo ee ealth and Safet 43
Environmental Performance 48
Mana ement Approach to our Environmental mpact 4
Waste Mana ement 2
Water se
Ener se 8
Carbon ootprint 3
Water ootprint
GRI Index 66
Annexes 1
2 | Sustainability Report /

4. LN is a textile company consisting of apparel
N tex il
xtile onsisting
sis p re The content of the report was prepared by
h co n eport a p par d by
a dye hou
and dye house units located in stanbul and
e in st l an considering SLN s practices in the eld of
o siderin
d n e l f
r lareli
lare i
reli CSR
CSR concerning employees and wor places,
or places,
A L
As SLN, we are pr ud t issue our seco
e pro d to i s cond
coo suppliers, environmental impact, customers
c u omers
sustaina i ty epo containing
sustainability report containin our social,
st nabi t a and the society in general The performance
rm
env ronm ntal n economic
environmental and economic data from
nvi onm indicators concerning these topics can be fou d
s n e foun
and
and We publ shed our rst sustainability
ublis our s in the relevant sections
repo
report in
port and comm te
and committed to do so “AA Sta eholder Engagement ialogue
alog
biannual y onou ing this
biannually onouring th s underta ing and
annually nour and GRI sta eholder engagement nt
t
c ntinui to s u
continuing to issue sustainability reports, our
n ta principle were used as a guide for sta eholder
od
compan aims to
compan aims to set a positive example in
any ms engagement GRI principles have been used as as
the porat s
the corporate social responsibility area in the
a the foundation of our approach to the report
ep rt
T s textile
Tur ish textil sector and in determining the material issues
s
ur rs
ur rst report issued in addressed
the production activities of SLN onfe siyon,
the produc SLN welcomes any feedbac and questions
m y b an uestion
a member of the group, in addition to the
member regarding the content of this report
o e o i r port rt
production and
production an export activities of SLN
n
Te si ve Moda The second report includes
e sil e Moda a Contact Person
n rs n
s
a dition y
additionally the activities of SLN Boya, which Meliha IL IRIM
e ha L RI
ha
was estab ished n
was established in uman Resource Responsible for Supply
ma Resource
sourr esponsib e or u pl
ponsible
o sb
n order to show ou sta eho e s SLN s
rder to show our a holder SLN
r Chai Comp ia e
Chain Compliance
h i mpli
subcontractor policy and its related application
b o t acto p licy
tor y its elatt pplic t on
li
processes, we also addressed in this report the
es also ddressed in this epor the
ress s ort mail meli yildir
mail meliha yildirim slnmoda com tr
i l ildi slnmo com
nmod
nm
CSR pro ects that too place at our second tier
S r ects h too a at u econd tie
s ier Web Address www slnmoda com tr
e Address www nmo a com
d moda
supplier
suppliers
ppliers
T s epor a b n repared n
This report has been prepared in
r pare
accordan e t h
accordance with the GR Global Reporting
c ance Global Repor n
o a o
Initiative)
Initiative) G3 reporting principles, as was the
nitia i
a eporting rinciples,
porti ncip e a h
previous ne
previous one owever, the current report is
us wever the cur en eport i
ve he urre
more
more te s
more extensive and meets the requirements
d ets h requirem t
e uire
eme
of Level B, which has been approved by GRI
f Level wh c ha been ppro e by GRI
evel
ev has rove RI
Sustainability Report / | 3

5. ABOUT US
ABOUT US
We integrated our sustainable business model
STATEMENT FROM with our innovative product and service approach,
staying loyal to all ethical values.
THE EXECUTIVE BOARD In this process, we were attentive to
develop our shareholder dialogue and to ful l
Esteemed shareholders, our reassurances to the primary shareholder
groups. “Empowering internal communication
he global nancial crisis experienced in in collaboration with S GEP, English language
T seriously a ected all industries
overall, along with the textile industry in which we
education within the scope of life long
education programs, “Shareholder Attendance
operate as SLN. in collaboration with Marmara niversity are
This challenging period indicated that we examples of signi cant social pro ects within
have to create a new road map, strengthening reporting term.
our proactive, permanent and universal values We assured that our contract manufacturers,
both globally and on country basis. The balance of who hold a signi cant part in our chain of supply,
production and consumption needs to be carefully participate in many social pro ects and acquire
reviewed, and all the negative e ects originated in awareness together with us.
this period have to be collaboratively assessed in In order to determine our impact on the
a transparent and accountable way by the whole environment, we added the new Water ootprint
chain of shareholders. measurements in this term in addition to the
In order to obtain a nancially sustainable Carbon ootprint measurements that we launched
state, we need to have an ethical and accountable in 2 .
attitude to the other shareholders. This is the most In 2 1 11, we also maintained the Plain
signi cant ey element to create a successful Production LEAN Program that we launched in
business model. In line with this, we need to adopt . We reached a production e ciency of %
the act of contributing to the solutions of social, as SLN Te stil ve onfe siyon, reali ing our goal for
environmental and economic problems in the the pro ect.
community as a primary corporate responsibility. In order to integrate our most important
At SLN, we are striving to implement the product of supply, the dyed fabric production
principle of sustainability successfully to the whole into the company, we performed our dye house
company, in order to have a sustainable state and investment in the start of . It too more time
to share our in uences with all our shareholders. than planned to form company values and a sense
We now that sustainability is a critical strategic of quality for the dye house unit, adapting it to
element that plays a signi cant part to shape our the SLN Te stil in the desired conditions. Involving
future. challenges both in terms of cost and time planning,
We are sharing with you our report of this process was completed to the end of .
performance and sustainability e orts, the rst of After the integration of the dye house unit, the
which was in and the second of which is in integrated production unit was formed. We believe
. ur goal is to convey our administrative, that this change will bring us advantages both in
environmental and social performance along with service and price.
our innovative management approach to you, our At SLN, our most signi cant goal for the
esteemed shareholders. upcoming years is to maintain our current customer
portfolio and add new brand customers to it.
We hope that this report containing our
sustainability performance from will be
a guide for you in terms of our sustainability
approach and practices. Our report for this term has
been prepared again according to GRI principles
on a B level with an extended scope. GC Principles
were ta en as guidelines to determine the scope of
extension.
Sincerely
Selin G r
SLN Te stil ve onfe siyon CEO
C AIRWOMAN O T E
E EC TIVE BOAR
SEL N G R
4 | Sustainability Report /

6. C AIRMAN O T E
E EC TIVE BOAR
SAL G R
Esteemed Shareholders,
t SLN, the corporate success and
A responsibilities of the company are of equal
value and importance to us with the short and long
term nancial achievements, while carrying out our
investment pro ects. As our previous experiences
and our six year company history showed us, a
company, which is unable to ful l its corporate
responsibilities, will never achieve nancial success
to carry the company forward in the long term.
Achieving success and satisfaction
incorporating the whole chain of shareholders is and steam savings than s to process and machine
only possible through maintaining and sharing amendments.
corporate values along with the company culture. With the environmental arrangements around
Our dye house investment in has been the company, our dye house now loo s greener and
established to better respond to the customer cleaner. The insulation and puri cation applications
demands in terms of quality, speed and price. for pipes and water channels throughout the
rom the day SLN dye unit was integrated in the company brought energy savings while enabling
company, we have been determined to set SLN safer transfer of water to the water unit. Our most
culture and values in this company as well. On this signi cant goal in this sub ect is to develop our
purpose, there has been a month program at the water puri cation system and contribute to the
dye house unit, which hosts employees. In this recovery of the Ergene Basin in Thrace.
long, challenging and costly process, the program We hope that this report will provide
turned out to be longer and more comprehensive enlightening sustainability and performance
than we planned. owever, we are graceful that data for all our manufacturing units. In our next
SLN corporate values and priorities are now reporting term, we are going to maintain the
integrated in the SLN dye culture. energy and water usage pro ects related to the dye
In we started to improve the social house and share the performance indicators with
and environmental conditions of the company. you, our ey shareholders.
Eventually, the social conditions of the company We are than ful to you for your interest and
were brought to an equal level with SLN Te stil ve contribution in creating the report.
onfe siyon. Increasing awareness for employees
and creating an employee portfolio that goes Sincerely
parallel with general SLN values were the most Salih G r
challenging and time consuming processes. SLN Boya Chairman of the Board
Arrangement and process optimi ation studies
on the environment proved to have positive e ects
on the visual and production processes of the
company. With the changing processes and new
machines, we use less energy while saving more
time and water. We achieved up to 3 % water
Sustainability Report / | 5

7. ABOUT US
ABOUT US
for the parent company.
COMPANY PROFILE SLN Tekstil is the main o ce where the
organi ation and coordination of the company s
entire textile activities are carried out. It contains
With its 350.000 unit/month a model shop and cutting and manufacturing
units. Moreover, it is the textile manufacturer
apparel, 15 tonnes/day dye
and exporter, which performs the commercial
production capacity and its quality activities of the company. SLN exports % of its
standards, SLN is among the leading textile products.
textile and apparel companies in SLN Konfeksiyon, which maintained its
Turkey. structure as it was described in the previous
report, is located in the same building as the
main o ce. The company performs 4 % of
the sewing, ironing and pac ing operations of
SLN Te stil. Contract manufacturers outside
ince its foundation in , SLN managed to the company carry out the remaining %.
S stay at the forefront of the industry through
its product portfolio, its approach to customers,
Additional information concerning the contract
manufacturers has been provided in the relevant
products and employees and its ability to adopt section.
and adapt to technological and quality trends. SLN Te stil s building, which has a . m2
As a result, it wor ed with global brands in the closed area, is located in Istanbul, Tur ey, and has
sportswear industry and succeeded in creating a a monthly capacity of . pieces.
business relationship, which still continues today. % of SLN Te stil s product range consists of
The dye unit that was established in helped sportswear for men, women and children, while
increase SLN s competitive power with regards to % consists of outwear for the same groups.
quality, cost and manufacturing times. % of our products are nitted fabric. Although
The trade name of the parent company, which the main fabric used in these products are cotton,
is located in Istanbul, was changed to SLN Te stil polyester and cotton polyester mixtures, we also
Moda n . Ve Tur. San. Ltd. ti. referred to as SLN produce garments with bres with high added
Te stil in this report) as new companies oined the value, some of which are pima cotton, organic
group in . In addition to the parent company, cotton, CMIA cotton, tencel, meryl, modal,
SLN onfe siyon San. Tic. Ltd. ti. referred to designed dyed yarn.
as SLN onfe siyon in this report) and SLN Boya SLN s clients include global companies from
ve Apre San.Tic.A. . referred to as SLN Boya in Germany, England, Scotland and the Netherlands.
this report) are also included in this report as P MA, a sportswear company, has been wor ing
organi ations carrying out the textile operations with SLN for years and has the greatest share
6 | Sustainability Report /

8. of production. SLN has been wor ing with Tommy There are various factories from di erent
il ger for years, Lyle and Scott for 3 years, industries in the L leburga B y kkar t ran
Leassig for years, Gaastra and 1 for years, region, where the plant is located. Textile,
and Thomas Pink for one year. We have added energy, glass, machinery and chemicals are
Christian ior and Museum among our customers the leading industries. Although the energy
in . Since all our clients are global brands, SLN industry contributes signi cantly to the region s
exports apparel to di erent countries upon their economy, textile industry has the highest
request. We frequently export our products to number of employees %). As a member of
Germany, Scotland, Netherlands and England. the textile industry, SLN Boya contributes to the
SLN Boya oined the group at the beginning development of the region with its employees.
of . It is a knitted fabric and chemical nish Agriculture plays a very important role in the
unit founded in B y kkar t ran town of rklareli economy of the region and provides % of the
L leburga Region. After frequent changes of obs, whereas workmanship accounts for % of
ownership, the dye house became a member of the obs. Trade comes third with %.
the SLN group in . The total number of employees in the group
yed knitted fabric is manufactured at the is . People work in SLN Tekstil, in SLN
dye house, which has a knitted fabric dyeing onfeksiyon and in SLN Boya.
machinery park. All kinds of knitted fabric mostly
cotton, polyester and cotton polyester mixtures)
are dyed and chemically nished in these
machines.
SLN Boya is a % contract dyeing house.
Customers supply the raw fabric, while the dye
house is solely responsible for the dyeing. Its
biggest client is SLN Tekstil, which utili es %
of its capacity. Likewise As Tekstil, Erse Tekstil,
Celion, rma and ns Tekstil are among the 3
textile manufacturers SLN Boya works with of
MEMBERSHIPS
these companies are passive. All of its customers
Memberships of SLN Tekstil ve Konfeksiyon
are textile companies, which manufacture ready
stanbul Textile and Garment Exporters Association T B
to wear garments. Some of them are exporters,
stanbul Chamber of Industry SO
like SLN, while other sell their products only in
stanbul Chamber of Commerce TO
Turkey.
Memberships of SLN Boya
SLN Boya was founded on a . m2 area,
L leburga Chamber of Commerce and Industry
. m2 of which are closed. Its daily production
capacity is between to tonnes.
Sustainability Report / | 7

9. ABOUT US
ABOUT US
SLN WITH NUMBERS
Employees Capacity
Piece Garment,
tons yed abric
WORK FLOW
Raw fabric Quality control
Dying Cutting
8 | Sustainability Report /

10. AWARDS
PUMA Sustainability Award;
SLN acquired this award from P MA, as a result of stanbul Textile and Garment
its successful sustainability e orts in 2 1 Exporters Association
Sewing Packaging
Final control
PRODUCTION VOLUME IN YEARS
pieces pieces pieces
Sustainability Report / | 9

11. OUR APPROACH TO SUSTAINABILITY
OUR APPROACH TO SUSTAINABILITY
MISSION
VALUES
VISION
SUPPLY
CHAIN
SUSTAINABILITY
RISK
MANAGEMENT
10 | Sustainability Report /

12. CORPORATE GOVERNANCE
A board of directors consisting of three
shareholders manages SLN companies. The
board is made up of Salih G r, the chairman, Selin
material topics the board of directors addresses.
In the monthly management review meetings
held with the participation of managers of the
G r and Serkan G r. All members of the board company, the company s internal procedures
are actively involved in the management of the are examined and issues and goals concerning
company and strictly responsible for sustainability sustainability, marketing, production, personnel and
related issues. technical details are discussed. Supplier evaluation
The board of directors meets on a monthly activities are conducted with the participation of
basis and inspects the functionality of the internal the managers of relevant departments.
supervision procedures of the three companies. In the meetings of the board of directors
They evaluate the performance potentials, risks and held twice a year, the goals of the company are
opportunities relating to the goals of the company. evaluated, the resources are assessed within
Promotion of the company in domestic and the framework of foreseen risks and potential
foreign markets, analysis of potential customers, opportunities, and the company investments are
and resource management are also among the determined.
Management Board
General Manager Quality Assurance Human Resources
Manufacturing Account Informatics Purchaising
Pattern Shop
Exportation Representative
Accounting
Finance
Management Board Chairman
Management Board Member Management Board Member
Quality Plant Manager
Assurance
Raw Fabric Operations
Physics Lab.
Control Manager
Machinery Dye House Human
Purchaising Planning Informatics Finance
Energy Exec Resources
Sustainability Report / | 11

13. OUR APPROACH TO SUSTAINABILITY
OUR APPROACH TO SUSTAINABILITY
VISION AND MISSION
To become the most To generate sustainable
widely known and preferred value for our stakeholders by focusing Service and quality oriented
sportswear manufacturer in Turkey. on our social, environmental and Employee satisfaction
economic impact and by using our Ethical and reliable production
innovative production approach which lexible and innovative approach
treasures superior quality. Responsible corporate citi enship
To keep the customer satisfaction at Built to last
the highest level possible through our
customer oriented working system,
and to manufacture products with
the highest added value and the best
quality in the shortest time possible.
SUSTAINABILITY IN THE SUPPLY CHAIN
Sustainability Topics
Corporate Governance Occupational health and safety Energy e ciency
Customer s requests sustainable Internal communication and Climate changes Carbon
production organi ation Emission
Water use water treatment
Sub supplier management Contract manufacturer management
systems
ialogue with stakeholders Waste management
Local employment
Relations with universities
O ur vision to be the most popular and preferred
sportswear manufacturer in the Turkish textile
market forced us to understand the developments
played an important role in the development of this
understanding in our company.
We are aware that in order for social
in the global business world and to investigate responsibility to ourish in our company, we need
common practices. We are very well aware of to understand all of our social, environmental and
the fact that SLN is a company within the global economic impact, which do or will exist. To this
production process. In addition to the uality end, we are making every e ort to develop various
Time Cost triangle, SLN is a company with practices to carry out our responsibilities to all our
organi ational responsibility which is essential for key stakeholders and to achieve an ethical and
the continuity of its business. This is a process, transparent production as part of our corporate
which must be undertaken and put into practice. culture.
Our main client P MA s expectations and requests In preparing SLN s Sustainability Policy, we used
12 | Sustainability Report /

14. the nited Nations Global Compact as a guide. process.
Our activity areas related to these principles were In addition to the Global Compact, P MA s
determined in accordance with the characteristics Safe compliance system and the LA air Labor
of our country, our industry and our working Association) code of conduct helped us form our
conditions. We conducted our studies mostly in policy. All GC practices continue to develop as living
those areas. All company practices were taken processes and all policies established within the
into consideration within the framework of company are based on this sustainability approach.
legal obligations and necessary regulatory and see the next page)
preventive activities were determined in the
RISK MANAGEMENT
In SLN, risk management is handled based on
the concept of sustainability. Our sustainability
committee carries out evaluations regarding
Customer satisfaction
Business continuity
Employee satisfaction
procedures and risk analyses. Relevant topics Employee health and safety
are determined and a risk analysis action plan is Energy e ciency Emission management
prepared. All risk analyses are carried out with the Product quality “Right the rst time Lean
participation of heads of the relevant departments. Management
In determining the topics, social, environmental
and economic impact are considered and The sustainability goals that are determined
scrutini ed with the participation of top managers. annually by the board of directors are determined
Our primary topics, which constitute foreseen risks, by analysing the risk factors de ned during the
are as follows year.
Sustainability
Management
Sustainability
Applications
Data Collection &
Analiysis
Dyehouse Data Collection Responsible For Energy Data Collection &
& Analiysis Dyehouse Analiysis
Sustainability Report / | 13

15. OUR APPROACH TO SUSTAINABILITY
OUR APPROACH TO SUSTAINABILITY
Issues and practices concerning were addressed through our company s
Businesses should SLN Tekstil Code of Conduct,
support and respect the protection Social Policy,
of internationally proclaimed human Company s Contract Manufacturer Policy,
rights. Company s Employment procedure,
Company s Suggestions and Complaints Procedure and Applications,
Company s O S Policies, Practices and O S trainings,
O SAS 18 1 certification,
Company s Supplier and Contract Manufacturer Policies,
In house trainings.
Businesses should make Issues and practices concerning were addressed through our company s
sure that they are not complicit in SLN Tekstil Code of Conduct
human rights abuses. Social Policy,
Company s Contract Manufacturer Policy,
In house trainings.
Issues and practices concerning were addressed through our company s
Businesses should uphold SLN Tekstil Code of Conduct,
the freedom of association and the Social Policy,
effective recognition of the right to Company s Contract Manufacturer Policy,
collective bargaining Company s O S Policies, Practices and O S trainings.
the elimination of all forms Issues and practices concerning were addressed through our company s
of forced and compulsory labour SLN Tekstil Code of Conduct,
Social Policy,
Company s Contract Manufacturer Policy,
Company s O S Policies, Practices and O S trainings.
the effective abolition of Issues and practices concerning were addressed through our company s
child labour and SLN Tekstil Code of Conduct,
Social Policy,
Company s Contract Manufacturer Policy,
Company s Employment procedure,
the elimination Issues and practices concerning were addressed through our company s
of discrimination in respect of SLN Tekstil Code of Conduct,
employment and occupation. Social Policy,
Company s Contract Manufacturer Policy,
Company s Employment procedure.
Issues and practices concerning were addressed through our company s
Businesses should Environmental policy and relevant practices.
support a precautionary approach to
environmental challenges
Undertake initiatives Issues and practices concerning were addressed through our company s
to promote greater environmental Environmental policy and relevant practices
responsibility and ISO 14 1, ekoTex 1 , GOTs certifications
encourage the Issues and practices concerning were addressed through our company s
development and diffusion of Environmental policy and relevant practices
environmentally friendly technologies. In house trainings.
Issues and practices concerning were addressed through our
Businesses should company s
work agains corruption in all its SLN Tekstil Code of Conduct
forms, including extortion and Throughout SLN Tekstil s existence, no relevant inappropriate active was
bribery. detected.
14 | Sustainability Report /

16. OUR CODE OF CONDUCT
WE SLN TEKSTIL COMPANY DECLARE that we will abide by the provisions of the laws
regulating human rights. Therefore, our company is obligated to comply with higher
ethical standards. This also includes the code of conduct of our suppliers. As a result,
our company guarantees to comply with the Code of Conduct below.
YOUTH LABOR AND PREVENTION OF commits to abide by all laws concerning ABUSE AND HARASSMENT: SLN
CHILD LABOR: In accordance with workplace conditions, safety and commits to provide its employees a
the rules regulating human rights and environment. working environment which becomes
domestic laws, persons younger than human dignity and which is in
1 years old or those who have not WAGES AND PAYMENTS: Our conformity with the universal principles
completed compulsory education are not fundamental approach to wage of human rights. Therefore SLN does
employed. Employees older than 1 and management is to develop a fair and not allow the abuse and harassment
younger than 18 have special working competitive wages policy in order to overtaxing) of the subordinates by
hours and breaks, which are laid down recruit qualified employees and to their superiors and vice versa, drudgery
by law. oung workers are employed ensure that they stay with the company. giving employees work which lie
after taking into consideration their In determining the wages policy, a outside their ob description) or mobbing
health, mental, moral and psychosocial system is established by considering the psychological or emotional harassment)
development, and personal skills. legal minimum wage, average wages in the workplace.
in the industry and the strategies of
FORCED LABOR: orced or compulsory our company in order to increase the FREEDOM OF ASSOCIATION: SLN
labour is any work or service that is motivation and performance of the regards freedom association a
required from any person under the employees. Wages are increased in constitutional right, respects,
menace of any penalty, and for which relation to the inflation rate and the encourages and supports its employees
that person has not offered himself or market conditions. The skills, efficiency membership in organi ations and
herself voluntarily. Providing wages or and conduct of the employees are also unions of their choosing and their active
other compensation to a worker does considered while determining their involvement in them so long as these
not necessarily indicate that the labour wages. Our employees en oy all benefits carried out in accordance with national
is not forced or compulsory. SLN Tekstil foreseen by the law. laws and regulations.
believes that making an employee
work overtime without taking his or NON-DISCRIMINATION: In accordance ENVIRONMENT: SLN commits
her consent constitutes forced labour. with Article 2 of Universal eclaration that it will comply with all relevant
orced labour is a fundamental violation of uman Rights, SLN makes no environmental laws and regulations,
of human rights. orced labour or distinction of any kind among its prevent environmental pollution,
physical psychological punishment will employees such as colour, language, reduce pollution at its source,
under no circumstances be allowed. race, sect, political opinion, ethnic adopt all necessary recycling and or
origin, age, sex or region. It applies recovery practices, and conform to the
OCCUPATIONAL HEALTH AND an equal wage policy when recruiting internationally recogni ed standards in
SAFETY: SLN has adopted a working or distributing work. It treats all its environmental management activities
system, which prioriti es compliance employees equally and protects their when conductions its operations. Our
with obligations arising from legal rights and encourages their protection. aim is to increase the quality of our
arrangements regarding occupational SLN does not use or allow the usage of products and activities while minimi ing
health and safety, taking measures for any criteria other than the professional our negative impact on the environment
determining risks at workplace, and the background and capacity of the and to leave future generations a clean
health of the employees. SLN commits employees while employing workers, and healthy environment.
to perform the occupational health and determining their wages and benefits,
safety activities in accordance with the allocating training opportunities ANTI-CORRUPTION: SLN undertakes
internationally recogni ed standards and distributing tasks, promoting, to work in accordance with all laws and
and by aiming to improve itself in this disciplining, laying off and retiring regulations in its work flow, regards
regard continuously. SLN provides employees. All of our employees are struggle against corruption as a part
protective gear to its employees who under our company s guarantee and of its daily business activities, and
are necessitated by the nature of the they are sub ect to equal treatment encourages all of its employees and
work and requires them to be used. SLN regardless of their position or seniority. suppliers to be a part of this struggle.
Sustainability Report / | 15

17. OUR APPROACH TO SUSTAINABILITY
OUR APPROACH TO SUSTAINABILITY
Increasing the domestic Increase in the company turnover and new investments made
competitive power with various investments made outside stanbul, the competitive
ollowing global power of the company in the domestic market has been increased.
production standards With the investment of dyehouse undertaken in L leburga , a fabric painting unit which will
to increase productivity meet the dyed knitted fabric needs of SLN Tekstil commenced operations in 2011. The unit also
Implementing Lean provides an additional income for the company s budget by acting as a contract dyehouse for
action Plan by 1 % in all other ready to wear companies.
production units We are prapering to start working with a new subcontractor established in Ordu sewing
Increasing production and packaging). Invesments made to render the workshop to comply with the quality and
capacity by 10% sustainability standards of SLN are still ongoing.
Lean pro ect practices were implemented in all production fields by 100% between 200
2010 including the contract workshops) and the production efficiency was achieved by 8 %.
Currently, in order to ensure the continuity of the pro ects and implementations, pro ect
training is carried on together with the implementing company.
The production capacity has been increased by 3 % from 200 to 2011.
Possible steps for Our carbon emission between 2 1 and 2 11 was reduced by %.
decreasing carbon emission All paper products used in the company are sent to recycling through TEMA foundation. In this
Sub ecting papers regard, all packaging papers used have been purchased as recycled products for the last 2 years.
internally used to recycling Awareness increasing training programs were conducted within the company promises for being
more environmental friendly, with regard to use of energy and emissions.
Sharing in house est The company shared all its financial, social and environmental pro ects and implementations
practices with all our with its stakeholders in the sustainability report of 2 . The company also shares its pro ects
stakeholders with all its key stakeholders, mostly with customers and employees, through presentations,
Continuity in Employee press bulletins and newsletters periodically prepared for various activities. SLN management has
Training made a commitment to its stakeholders to maintain the stakeholder information activities in a
Implementing more efficient manner in the future.
new corporate social The hours of training given on various sub ects were 23 hours in 2 1 and 13 hours in 2 11.
responsibility CSR) pro ects In 2 11, corporate communication enhancement pro ect was implemented in cooperation with
ecreasing the absence SOGEP and PUMA. In addition, in 2 11, research phases of 3 different CSR pro ects prepared
rate from 2.2 % to 1.2 % in cooperation with Marmara University and PUMA were completed. One of the pro ect out of
these 3 is included in the targets to be implemented in 2 12.
The absence rate was increased from 2.2 % to 3.1 %.
16 | Sustainability Report /

18. in stanbul to the dye house area in L leburga . With this pro ect, it is targeted to
decrease the costs of transportation and manufacturing. The cost of cutting, which currently
which is located in Ordu, will start with 1 % capacity of the whole sewing and
packaging process and will be increased by 40% during 2012. With this, the costs of sewing and packaging, which constitute
20% of the production costs, will be decreased by 20%.
will have replaced the sewing machines of SLN onfeksiyon with the latest technology machines, which
all gasoline powered company
we will continue investing in the latest dye machine technologies used in our production
processes.
ollowing the relocation of the cutting unit, transportation between departments will be considerably reduced by means of proper
planning and thus, carbon emission will decrease. Locating the cutting unit at the dye house area
Thanks to the energy efficiency pro ects and their implementations at our subcontractors,
OR U) will generate employment in Anatolia and will help
employees relocate from stanbul to Anatolia. These pro ects also provide support for the city planning pro ects of stanbul. If a sector
with a high demand for workers such as the ready made clothing sector is moved outside stanbul, this will both contribute to a
decrease in stanbul s population and to the city s environmental planning.
by means of the energy saving pro ects to be implemented at SLN Tekstil.
The purchase of machines running with a low rate of water will continue. These Investments together with other technical
optimi ation processes
Installing advanced treatment systems at the wastewater treatment plant. The purpose here is to
Investing outside stanbul, it is also targeted to
All CSR pro ects which cover SLN s company policy and which are performed in the new units
also will contribute to their training on labour rights and will raise their cultural level.
Implementing Internet Communication CSR pro ect which was targeted in 2011 and prepared in
which has been prepared together with Sogep and which covers new arrangements about
uman Rights and Labour law.
Sustainability Report / | 17

19. STAKEHOLDER ENGAGEMENT
STAKEHOLDER ENGAGEMENT
"We accept that Stakeholder engagement is as crucial to an organization's
sustainability and success."
– Selin Gür
18 | Sustainability Report /

20. OUR STAKEHOLDERS AND DIALOGUE PROCESS
n order to improve our report with regards In preparing our report, we rst contacted the
I to stakeholder engagement, we used the
international standard AA1000 Stakeholder
appropriate key stakeholders through methods
determined previously. The data obtained through
ialogue 2011 as a guide, in addition to the GRI our dialogues with them were evaluated by the
stakeholder engagement principle. sustainability committee and the possible risks
The underlying principle behind the AA1000 and opportunities for our company were taken
Stakeholder Engagement Standard represents a into consideration. As a result, the material topics
process carried out by the organi ation in order included in this report were determined. We hope
to facilitate the e ective implementation of to have met the requests and expectations of our
the stakeholder engagement process through stakeholders with the topics we included in our
appropriate methods and analyses. As a report as a result of the stakeholder dialogue.
result, during the stakeholder analyses of the
organi ations, stakeholder expectations, which OUR PRIMARY STAKEHOLDERS
must be strategically prioriti ed, are determined. As SLN, we are always trying to improve our
This method prevents the organi ation from position within the Turkish textile industry. We are
allocating resources to irrelevant areas. Moreover, aware of the fact that it is very important to be in
it also assists the development of strategies, which a permanent dialogue with our key stakeholders
meet the primary expectations of the society, which which are a ected by the activities, products and
is a very important stakeholder in it and which services of our company and which also a ect the
generally includes the consumer customer group. implementation of our corporate strategies and
The bene ts of a company arise from ful lling its formation of our goals through their own actions.
corporate responsibilities, e ciently allocating its The processes which were initiated as a result
resources, and by creating a corporate image in the of the dialogues with our main stakeholders and
eyes of its stakeholders, which honours its social, which are mentioned in our previous report are still
environmental and economic responsibilities. being implemented. In order to strengthen these
AA1000 standard achieved great success with dialogues we carried out a more e ective dialogue
respect to CSR applications. It is the only standard process by means of the AA1000SES principles in
which many corporations use as a reference in the this reporting period.
stakeholder engagement CSR applications. Below are our key stakeholders, which were
We aimed three fundamental principles within determined according to the standards and our
the scope of AA1000 methods of dialogue.
1. Stakeholder Engagement The key stakeholders were determined through
2. Prioriti ing annual meetings, top management meetings,
3. Responsiveness department meetings and employee trainings by
Employee loyalty and satisfaction survey, SLN training programs,
information meetings, communication meetings, meetings held on a
department basis.
Training programs, improvement audits, one on one surveys.
Regular meetings, one on one interviews.
oint CSR pro ects, quality based meetings and surveys, company visits,
conferences.
Regular visits, various means of communication e mail, telephone, fax,
etc.).
One on one interviews, improvement audits, means of communication.
Pro ect partnerships, organi ational and employee memberships,
conference participations and presentations
Pro ect partnerships, conference participations and presentations, one on
one interviews
Surveys and opinion gathering
Sustainability Report / | 19

21. STAKEHOLDER ENGAGEMENT
STAKEHOLDER ENGAGEMENT
taking into consideration SLN s economic, social Dialogue with Customers
and environmental interactions. Accordingly, SLN is continuously in dialogue with PUMA,
we determined our key stakeholders to be our its main client, through the CSR pro ects they
employees, customers and suppliers, as in the organi e together. These pro ects constitute the
previous year. The other stakeholders who are also most e ective means of communication between
part of SLN Tekstil s group of stakeholders are PUMA and SLN. Moreover, in house and supplier
shareholders, public institutions and organi ations improvement pro ects improvement pro ects
municipalities, tax o ces), NGOs, banks, applied for product quality, social elements, etc.)
local community and academicians with equal also enable regular communication with the
importance. iversity of our dialogues acted as a customers and constitute a feedback mechanism
driving force in measuring the expectations and which a ects the determination of the topics
needs of our stakeholders. of the reports. In addition to this, customer
oriented meetings, conferences, customer surveys
Dialogue with Employees which address CSR topics) and general means
Selin G r, chairwoman of the board, adopted one of communication telephone, e mail, fax, etc.)
on one interviews with the personnel or managers are other methods used in the dialogue with the
or direct reporting as methods of communication in customers.
order to evaluate the comments received from lower
levels of the corporate hierarchy more e ciently. Dialogue with Suppliers
All SLN employees are able to communicate Through our CSR activities, performed in order to
their requests, suggestions and opinions to top improve social and environmental conditions, we
management during regular personnel meetings, stay in touch with our main suppliers contract
through worker s representatives, or by means of manufacturers, dye house). Their periodical
suggestion complaint boxes placed around the feedbacks are communicated to SLN regularly. In
production areas. Moreover, they can communicate addition to this, one on one surveys conducted
their feedback directly to top management during during reporting provide feedback from both the
meetings and trainings held periodically. main suppliers i.e. contract manufacturers) and the
Corporate Governance
Client s Requests
Sustainable production
Occupational health
and safety
Internal communication
and organi ation
Contract manufacturer
management
Sub supplier
management
ialogue with
Stakeholders
Energy E ciency
Climate changes
Carbon emission
Water use – Water
treatment systems
Waste management
Local employment
Relations with
universities
20 | Sustainability Report /

22. secondary suppliers raw material suppliers). provide the most efficient feedback regarding these
In the following sections of our report, we used topics were developed with reference to the topics
quotes from the personnel who has been working determined as a result of the preliminary surveys. As
with SLN and who had signi cant experiences, such, stakeholder feedback mechanisms were formed.
by taking into consideration the trainings and At the last stage, stakeholders feedback was
workshops it participated in and the surveys. We analysed in detail and the environmental, social and
believe that the reader will be able to understand economic topics, which were most relevant to the
the report from the viewpoint of an SLN employee. company, were included in the report.
ialogues which re ect the views and thoughts When determining the material topics, the
of our other key stakeholders customers, suppliers Global Compact principles, the national laws and
and NGOs) are cited in the following sections of the topics related to the industry were considered.
this report. In this context,
Topics which directly a ect SLN s performance
DETERMINING OUR PRIORITIES and which are signi cant for key stakeholders were
GRI principles were used in forming the basis of our selected as rst material topics
reporting approach and in determining the material Topics which are signi cant to our key
topics. stakeholders and which are regarded highly by the
Potential material topics were determined society were selected as second material topics
through preliminary meetings and workshops, Topics which did not a ect our performance
which the sustainability committee held in the directly and which were not regarded by our key
company within the scope of the GRI prioriti ing stakeholders to be material, but might constitute
test. The top management approved the topics a risk in the future within the framework of
afterwards. sustainability, were determined to be third material
Stakeholder dialogue platforms that would topics.
Sustainability Report / | 21

23. ECONOMIC PERFORMANCE
ECONOMIC PERFORMANCE
Increasing quantity of products with a high added value by adding various brands to the production chain.
in stanbul to the dye house area in L leburga . With this pro ect, it is targeted to
decrease the costs of transportation and manufacturing. The cost of cutting, which currently
which is located in Ordu, will start with 1 % capacity of the whole sewing and
packaging process and will be increased by 40% during 2012. With this, the costs of sewing and packaging, which
constitute 20% of the production costs, will be decreased by 20%.
will have replaced the sewing machines of SLN onfeksiyon with the latest technology machines, which
all gasoline powered company
we will continue investing in the latest dye machine technologies used in our production
processes.
22 | Sustainability Report /

24. Exporters Associations), the industry s export
MANAGEMENT figures decreased by 1 , % in comparison with
the previous year. espite this loss, the industry
APPROACH TO OUR maintained its position as the second largest
export industry right behind the automotive sector,
ECONOMIC IMPACT which suffered a 31,8% decrease in exports.
Turkey s general export decreased by 23% in
TEXTILE AND APPAREL INDUSTRY IN 200 , whereas industrial export decreased by
2 , %. Starting from October 2010, however, the
TURKEY
effects of the economic crisis and other factors
that damaged our export started to decline.
hen assessed together, textile and apparel In this context, developments in the global
W industry is the fifth biggest industry in
Turkey in terms of gross domestic product, their
market conditions, the domestic production costs
and the course of the exchange rate are the main
share in the manufacturing industry and total factors that affect the apparel industry s export
industry production, exportation, their nominal performance. Today, Turkish Textile and Apparel
foreign exchange contribution to economy, Industry is the driving force of Turkish economy
employment, investments, openness and with the employment it provides and its monthly
macroeconomic industries. Textile and apparel export income that exceeds 1 billion US . In
industries provide 10% of Turkey s gross domestic addition, ready to wear and apparel industry was
product. the second greatest export industry in 2011, behind
With the abolition of quotas applied to textile automotive, which increased its export by 20,4%
and apparel products after 200 and China s in the anuary September 2011 period. espite the
export on the rise, the textile and apparel industry shrinkage in the EU countries, which constitute
started to go through a restructuring period. In 80% of its exports, the apparel export is expected
200 , textile industry s share in manufacturing to reach US 1 billion in 2012 with the help of
industry was 10, % while apparel s share was the exchange rate. owever, it is also asserted by
,4%. Textile production decreased by 12% in taking into consideration the crisis expectations
comparison to previous year, whereas apparel that the industry may preserve its current status
production decreased by 1 , %. In 200 , the share instead of growing.
of apparel and ready to wear export in general The problems which plague the textile and
export was 1 % but it dropped to 1 % in 200 and apparel industry in Turkey are high financing
to %12 in 2008. Textile s share in general export and energy costs, overcapacity, underground
dropped from % to %. production, lack of branding and the weakness in
The regression in the apparel industry, which the capital structures of the companies. owever,
suffered a 2,1% decrease in 2008 a first since the industry en oys certain advantages as well,
1 ), continued in 200 when the global crisis which are short delivery times, proximity to target
shrunk the world economy considerably. markets, wide range of products, a developed
According to T B stanbul Textile and Apparel textile and finishing industry, to name a few.
Sustainability Report / | 23

25. ECONOMIC PERFORMANCE
ECONOMIC PERFORMANCE
OUR ECONOMIC PERFORMANCE through a si able budget, constitutes a risk for SLN
since it is a different branch of business with costs
The fundamental policy of our company commits higher than those in the apparel manufacturing.
to achieving sustainable economic growth through owever, despite its setbacks, it also offers SLN
a flexible and transparent production, while many advantages by making it an integrated plant
managing a client portfolio that contains leading that can be closely monitored by the management
global brands. of our company.
SLN contributes to the economy significantly in There are no significant economic challenges
the geographical areas it carries out its operations or risks in the apparel industry where SLN
i.e. stanbul, L leburga – B y kkar t ran). operates. This is partly due to the fact that SLN is
The employment we create with our average doing business with few but loyal clients, which
3.800.000 pcs year apparel and 4. 00 tonnes are leaders in their respective sectors. Reliable
year dyed fabric capacity has a positive influence clientele constitutes a very important economic
on the region s economy. stability factor for SLN.
SLN s production increased five fold within In addition to its existing portfolio, SLN focused
years since its establishment. The production, on the U market in 2011 in order to increase
which was 34.000 pcs in 200 rose to 3.3 4.2 its ratio of products with higher added value
in 2011. When it was founded, SLN s goal was to and to develop new collections. We hope that
reach a 3.000.000 pcs year production capacity different markets will give our company a broader
within years. espite the .3% decrease it perspective.
suffered due to economic crisis in 2008 200 , ecreasing cost ratios, improvements observed
production increased steadily and we managed to in our economic data and energy efficiency
achieve our goals. Our next ob ective is to maintain investments we made for a sustainable environment
this production capacity while adding new clients brought significant economic benefits to our
to our portfolio and producing goods with higher company in 2011, particularly within the dye house.
added values. ou can find information about energy efficiency
In order not to allow a decrease in the quality and carbon footprint in the environment section.
of our products or an increase in production time The Lean Pro ect, which we started to
while manufacturing products with high added implement in the apparel manufacturing
value, and to keep production costs under control, department in 200 in order to increase
we opened our dye house in 2011. This investment productivity, is still running. The expert controls
amounted to .000.000. We also started to work and audits performed within the scope of this
with a contract manufacturer in the Middle Black pro ect will continue in the future as well.
Sea Region to transfer our apparel production to Our economic performance is monitored
Anatolia. carefully through the Sente Vogue ollow up
The dye house investment, which was reali ed Software utili ed in our company.
4,000,000
3,500,000
3,000,000
2,500,000
2,000,000
1,500,000
1,000,000
500,000
(PIECES) 0
(YEAR) 2006 2007 2008 2009 2010 2011
24 | Sustainability Report /

26. THE SENTEZ VOGUE FOLLOW-UP maintain these conditions will survive, SLN
SYSTEM established the Lean Production System in 2009 in
order to establish effective business processes. In
order to ensure that the system is integrated firmly
The Sente epartment, which is directly connected within the company and continuity is maintained,
to the Board of irectors, analyses and calculates SLN continued to work with expert pro ect
the product costs, orders, and models of all consultants in the 2010 2011 period. The system s
exported orders by using the Sente Vogue Apparel effectiveness is followed through Sente , SLN s
ollow up System. This department is in charge production control software.
of entering, monitoring and confirming all the SLN encouraged the contract manufacturers
incoming invoices and submitting a cost report to to establish Lean Production Systems as well. The
the management based on the quantity of orders. same expert consultants carry out the pro ects,
The fabric and accessory details of every order, which are currently being implemented at our
their subcontractor manufacturing and general contract manufacturers.
expenses ratios are also included in this report. There are five areas which support Lean
After the analysis of piece orders and models, Production practices Cost, uality, elivery, Safety,
the statistical and graphical representation of and Morale. Lean helps us in this direction as an
every detail is also submitted to the management. important improvement tool and philosophy.
The Sente epartment prepares a customer
based cost report every month which consists
of the details of all sent fabrics, formulas, dyes, elimination of 8 wastes:
chemicals, labour, electricity, natural gas, packing, 1. Overproduction
transport and general expenses by using the Sente 2. Waiting
YE ye ouse follow up system. The formulas 3. Transportation
are brought together in a single report and the 4. Inventory
customer formula analysis report is prepared. The 5. Motion
epartment also submits to the management the 6. Over processing
reports, which were produced as a result of Lean 7. Correction of defective units
production. 8. Constant flow in information exchange and
implementation of production concepts upon
Monthly Lean Production Report (includes R Ts, Si customers requests
Time Analyses, Customer Analyses)
Monthly Lean inancial Report (formuli es Benefits of the System:
Expense Items and Production uantities) Waste reduction
Monthly Lean Cost Analysis Report (consists of Production cost reduction
Time and Performances) Shorter manufacturing lead times
Increased productivity
LEAN PRODUCTION SYSTEM Inventory reduction
Increased capacity in current facilities
The Lean evelopment Program, which we started Space saving
to implement in SLN Tekstil and SLN onfeksiyon igher quality
in the previous reporting term, accelerates the igher profits
product and service flow and achieves continuity in igher system flexibility in reacting to changes
production. More strategic focus
The purpose of this system is to manufacture Improved cash flow through increased shipping
high quality products at a low cost in a short time. and billing frequencies
nowing that only the manufacturers who
Sustainability Report / | 25

27. ECONOMIC PERFORMANCE
ECONOMIC PERFORMANCE
2010-2011 LEAN SYSTEM a part of the daily routine and all employees
received 5S training to ensure continuity.
Visual displays and controls were developed in
relation to production area employees, materials,
Our lean production ourney, which we set out in workstations, real time tracking of the production
2009, still continues. ollowing the middle and performance, methods, and occupational safety.
top level lean production trainings, the value Within the scope of standardi ed business
chain analysis of the company was conducted applications, they were informed about the
and areas with a potential for improvement were standard sequence of action and work in process
determined. This was followed by production area inventory amounts.
and supplier applications. Product amily Analyses were conducted in
In 2010, 5S (Sort, Set in Order, Shine, order to use the production lines effectively.
Standardi e, Sustain) and Visual Workplace uality improvement ai en teams use CE AC
development activities were carried out. (Cause and Effect with Addition of Cards) and
Unnecessary materials were removed from the Application Methodologies intensively.
production area and appropriate places were Lean metrics and factory store card were
designed and arranged for all materials and formed and thus the company was made
equipment. Cleaning of workstations became “measurable .
SUSTAIN
Maintain
established
procedures
E ciency increased by 85% in standard products and 75% in other groups.
They were able to operate at 95% and more R T.
Satisfactory results in customer deadlines.
Capacity increase without increasing costs and workforce.
Improvement of work ow and cost reduction.
A sustainable life in corporations is possible only through the elimination of wastes from all
work processes in the “value chain” (i.e. the process starting from the reception of the order to
competitive power in work processes, plants and supply chain. We cite SLN Tekstil as an important
reference for the project model.
–
26 | Sustainability Report /

28. ECONOMIC DATA
Economic Value We Created and Distributed Textile & Apparel &Dye
Economic Value Created and Distributed Unit 2010 2011 GRI
Production TL 20.100.722,00 48.205.256,56 EC1
Labour TL 1.973.345,00 5.783.608,21 EC1
Tax TL 1.459.402,00 3.805.846,81 EC1
General EXPENSES TL 1.281.587,00 2.169.597,83 EC1
Turnover TL 38.625.221,00 58.370.056,98 EC1
Investment TL 614.606,80 2.787.283,98 EC1
SLN s contribution to the economy occurs through
the payments we make to our employees, to Although SLN does not have an established
our suppliers (as production costs) and to the policy regarding the selection of local suppliers,
state (in the form of taxes). The costs we refer food, shuttle services, transportation of products
to as “general expenses include the energy and and employees, and consumables need to be
water costs and other various expenditures of the supplied from local suppliers in L leburga –
company. B y kkar t ran, where SLN Boya is located. On
The Social Security Institution insures all our the other hand, the dyes and chemicals used at
employees the pension contribution is 20% (9% the factory are purchased mainly from European
is paid by the employee whereas 11% is paid by companies. Since these expenses constitute a
the employer). great share of purchases, 91% of SLN Boya s
supply products are purchased from foreign
Pension Contribution suppliers.
2010 (TL) 2011 (TL) SLN Tekstil and onfeksiyon meet their supply
needs basically from suppliers in stanbul (%96).
Textile 64.496,33 95.320,70
Even though a second tier supplier policy is not
Apparel 86.329,44 99.481,29 in place, SLN has some guidelines for green local
Dye house 0 121.270,72 procurement.
TOTAL 150.825,77 316.072,71
Supplier Distribution
SLN Tekstil ve Konfeksiyon SLN Boya
LOCAL 96% LOCAL 9%
FOREIGN 4% FOREIGN 91%
Sustainability Report / | 27

29. ECONOMIC PERFORMANCE
ECONOMIC PERFORMANCE
Employee Wages domestic productions and their export and the
etailed information on the wage policies of SLN reimbursement of import taxes. The customs duty,
is provided in the social practices section of this which is refunded, depends on the kind of the
report. Below is a summary of our contributions to material.
our employees in economic terms
Of the 184 employees who work in SLN Tekstil ve Dye House Investment
onfeksiyon, 18 are working with minimum wage, As a company that has been active in the ready to
which is 9,78% of the workforce. If our employees wear and apparel industry for the last 5 years, SLN
in SLN Boya are included, the total number rises to decided to invest in a dye house. This decision was
334 and this ratio drops to 5,38%, since there are taken to keep the cost and quality factors under
no employees in SLN Boya who receive minimum control as an integrated textile company. SLN s
wage. As of ecember 2011, gross minimum wage management wanted to use its experience it gained
in Turkey is 838 TL, however, the average gross in the apparel industry in other textile production
wage in SLN, even in the production departments, units to expand the company.
is around 1150 TL. The fabric dyeing factory ( ye House) that
maintained its existence through di erent
SLN Group
companies was purchased by SLN at the beginning
of 2011 with its current machine park and its name
was changed to SLN Boya.
When it was rst purchased, the plant had the
appearance and operations of a company losing
money, but thanks to the considerable e orts
and investments made last year, it became one
of the leading modern textile dye houses in the
region. However, the installation and improvement
processes in the management and operation
system are still continuing.
OTHER 94,62% “When we consider the fact that 35% of
MINUMUM WAGE 5,38% local people are working in the textile industry,
it becomes evident how much the existence
There is no employee in SLN Boya who receives and ethical production of SLN is important for
minimum wage. our region. As B y kkar t ran Municipality, we
are aware of the change the ye House, which
State Subsidies had been operating in the area for a long time,
SLN did not receive a signi cant amount of subsidy underwent seeing the improvements in the physical
in this reporting period. Those we received, which environment and the company s payments and we
are relatively small, are as follows support them.
Employment subsidy this is a 5% discount in After becoming a member of the SLN Group,
the insurance contributions, which is provided to the ye House underwent an internal and external
companies who pay their insurance contributions renovation process. Environmental design was
regularly and who do not have any insurance made and the machinery park was renewed (details
liability. concerning the new machinery park can be found
Inward processing subsidy this is a subsidy in the environment section of this report due to the
which promotes the use of imported products in energy and water savings it achieved).
“When we consider the fact that 35% of local people are working in the textile
industry, it becomes evident how much the existence and ethical production of SLN is
the Dye House, which had been operating in the area for a long time, underwent
seeing the improvements in the physical environment and the company’s payments
and we support them.
We are very happy with SLN’s investments concerning environmental design inside the
Dye House, and as the local municipality, we are expecting further contributions from
SLN particularly about the local transportation and roads.
–
28 | Sustainability Report /

30. Sustainability Report / | 29

31. ECONOMIC PERFORMANCE
ECONOMIC PERFORMANCE
SOCIAL BENEFITS
SCHOLARSHIPS AND AIDS IN KIND Scholarships: SLN Textile grants scholarships
to secondary education and university students
1011 “Golden Hearts” Supporting the studying in different regions of Turkey. SLN Tekstil,
Handicapped: which attaches great importance to education,
This pro ect was organi ed to help disabled people offers scholarships to 15 students.
from the eytinburnu Handicapped Association, as
well as from all over Turkey Mehmet Topal, Sel uk Sportswear Sponsorship for Sports Teams of
nan and smail yba who are professional Evren Elementary School
football players from the Turkish Super League, With a view to act on Corporate Social
also oined the pro ect. Many celebrities from Responsibility, SLN Tekstil aims at developing
different fields like sports and arts attended the Ba c lar, the district where its production unit
event held on 24 May 2011 at the Olivium Mall. is located and where most of its employees live,
The sponsors came together at a dinner and were through the pro ects it will carry out. To this end
offered placards. SLN donated 11 wheelchairs to SLN has decided to be the sportswear sponsor
this pro ect. of all sports teams of Ba c lar Evren Elementary
School for 5 years. 140 sportswear sets (two sets
for each student) were produced for 70 students
from football, basketball, volleyball and athletics
teams. In addition to tracksuits, two t shirts were
made for students as well. Furthermore, SLN
Tekstil also provided basketballs, volleyballs,
footballs and umping ropes needed by the Evren
Elementary School.
T-shirts distributed to employees at SLN Boya
and Contract Manufacturers
SLN attaches great importance to all of its
stakeholders and distributes t shirts to employees
at SLN Boya and its contract manufacturers twice
a year.
30 | Sustainability Report /

32. PRODUCT RESPONSIBILITY
PRODUCT RESPONSIBILITY
"SLN is a highly committed key partner with the service they provide where we rely on totaly."
–
Sustainability Report / | 31

33. PRODUCT RESPONSIBILITY
PRODUCT RESPONSIBILITY
OUR UNDERSTANDING OF QUALITY has certi ed this fact.
Our general production goal is the achievement
s we stated in our mission, in order to minimi e of highest possible customer satisfaction through
A our negative social, environmental and
economic impact and to honour the commitments
our customer oriented working system.
We tried to measure the level of satisfaction
we made to our customers by achieving innovation of our customers regarding SLN s services and
and high quality, SLN integrates all current learn about their requests and opinions through
legal, industrial and customer based product the customer satisfaction surveys conducted
responsibilities within its production processes. during the reporting period and general customer
Production of the goods right the rst time is the noti cations.
general production strategy of our company. The feedback we received from our customers
In order to generate correct solutions within the indicates that they are generally satis ed with
Time, Energy and Cost triangle, SLN uses cutting SLN products and product services. In addition
edge technology machinery and modern production to this, our management carefully addresses
systems. Within the quality system process, all requests and improvement suggestions they
stages (from the purchase of raw materials to communicated to us.
the delivery of the goods to customers) have In order to increase customer satisfaction
been planned in detail with relevant policies and concerning the product quality and deadlines, we
procedures. are aiming to decrease internal repairs.
Through continuous development and
improvement programs, customer satisfaction was OUR SUSTAINABLE PRODUCTS
adopted as the rst quality ob ective in all units.
E ective product ow and process management Creating sustainable value and products for
were established through ISO 9001 2008 uality our stakeholders by focusing on our social,
Management System. environmental and economic impact with our
The chemical and physics laboratories of innovative and high quality production methods is
SLN Boya where raw and dyed fabric tests are one of our ma or management approaches.
conducted have been accredited by SGS in 2011 To this end, we included a collection consisting
in accordance with PUMA Standards. SLN Tekstil of CMIA and Organic Cotton products into our
nal product quality control laboratory has a SGS product range in the last three years by taking into
certi cation since 2007. consideration PUMA s product requests.
Raw and dyed fabric tests conducted in SLN Since we mainly work in accordance with
Boya laboratories help us create the physical and the requests of our customers, we are unable
chemical conditions requested by our customers. to generate a direct drive for the production of
The chemicals and dyes used in our company sustainable products or for their increase. However,
do not contain substances that are ha ardous we communicate our commitments in this regard
for human health and the Eco Tex Standard 100 and our desire to produce sustainable products on
certi cate received by our company many years ago various occasions.
the ecological standards
of textile products during
production and thus supports
product responsibility and
customer health.
32 | Sustainability Report /

34. OUR MAIN CUSTOMER'S OPINIONS
Jürgen Mahn: ue to the fact Selin has been a key person to the Puma business even before SLN,
we have a perfect and very close partnership which has been grown over the years. Trust is the
basis for everything we do together as a Team.
Dilek Ergen: Highly committed, a key partner with the service they provide where we rely on
totally.
Jürgen Mahn-PUMA,
Stefan Seidel: I can mostly comment on compliance and sustainability. Here SLN is one of our Global Sourcing
leading suppliers on a global scale and certainly o ers great exibility when it comes to short Director Apparel World
delivery times. Cat Ltd.
Being a young and energetic company, SLN does not have a traditional and fro en
character. Therefore it is very quick and exible in adapting to developing processes. SLN is
one of the companies that we work with very smoothly and comfortably thanks to the e ective
communication between us.
Jürgen Mahn Price is still an issue because Europe is more expensive than other markets. This is
a problem, but we need to overcome this together. Dilek Ergen-PUMA,
Senior Head of
Dilek Ergen: SLN needs to invest in competitive locations and stay committed to productive Apparel Sourcing
production processes such as Lean, should not pay e ort on short term investments and strategies EEMEA
but aim to have a min 5 years planning with stakeholders.
SLN can certainly further improve with Communication about the activities achievements,
better manage the supply chain and the dialogues with stakeholders, can still do much more in
the area of sustainable bre usage (recycling).
Stefan Seidel: While SLN is certainly already on the right track compared to its peers, I think the
ma or challenge is to fully integrate subcontractors and sub suppliers into the sustainability e orts.
Continue the path with development and production of more sustainable products, evaluation
of recycling options for production waste and products at the end of their product life, inclusion
of subcontractors into sustainability e orts and reporting, continue to engage with critical Stefan Seidel-PUMA,
stakeholders such as NGOs as well as experts (academics, consultants, etc.) Safe Ecology Team
Head
Jürgen Mahn: Partnership, SAFE, Sustainability, PI s Competitiveness oined strategy.
Dilek Ergen: We target to meet ey performance criteria for Purchasing such as Price, lead time,
on time development and production delivery, product ability and service level sure are the other
two main considerations.
Stefan Seidel: Again, focusing on the sustainability aspect it is the material (e.g. organic cotton,
recyclable material) but also the connected certi cations such as GOTS, ISO 14001, Oeko Tex, etc.
PUMA.
Safe Humanity and
Ecology Auditor
and Responsible
for Continuous
Improvement
Sustainability Report / | 33

35. PRODUCT RESPONSIBILITY
PRODUCT RESPONSIBILITY
OUR AFRICAN COTTON
“A hand for trade - a heart for Africa”
SLN oined the Cotton Made in Africa pro ect Activation of market forces in the
with PUMA s encouragement in 2009 and its sales markets (Europe USA)
participation increased steadily in the last three
years.
Cotton made in Africa is a strategic alliance of
partners from trade and industry, the public sector
and non governmental organi ations (NGOs)
which contribute to the fight against poverty and
environmental degradation in sub Saharan Africa Improvement of social Promotion of
and help local cotton farmers and their families to condutions in developing environmental protection
countries in developing countries
raise their own standard of living. The pro ect is
maintained by the Aid by Trade Foundation (AbT),
which was founded in 2005 by r. Michael Otto.
Besides AbT, further participants and supporters created by the alliance partners, for example PUMA
are for example the German Ministry of Economic and the Otto group, who commit to merchandising
Cooperation and evelopment (BM ) and the Bill a specific amount of cotton, which assures sales
Melinda Gates Foundation. Up to now about volume for the farmers. Members of the alliance pay
150.000 smallholders are involved, located in Benin, a license fee which is then reinvested in the pro ect
Burkina Faso, Mo ambique and ambia. countries to assure education, raise living standards
The aim of the pro ect is to improve the and preserve the natural environment in the pro ect
growing conditions of cotton and make production countries.
sustainable in the CmiA pro ect regions while Collections of CMIA products have been created
exploiting synergies that amplify pro ect with the participation of African designers for the
effectiveness. Another pro ect goal is to enhance last two years. Thus a connection is built between
the competitiveness of African cotton, while adding the fashion and development pro ects. The success
a new dimension of corporate responsibility. of the pro ect is measured by sustainability
The concept of CmiA is a self help principle for indicators such as its contribution to the elimination
smallholders. The cotton is traded at a market of poverty and to preservation of environment in
price and not at increased prices. The idea behind the region, the percentage of educated children,
the pro ect is to provide training in the form of farmers income, efficiency of water usage, and the
workshops to farmers about how to cultivate use of pesticides and fertili ers.
cotton while also enhancing their productivity and CMIA cotton purchased by SLN in 2010 2011 has
simultaneously lowering the environmental impact reached 300 tonnes. As of 2011, this corresponds to
of cotton production. At the same time, demand is the 30,7% of the production.
34 | Sustainability Report /

36. ORGANIC COTTON PRODUCTION Independent certification companies certify
We started Organic Cotton production in 2010 organic agriculture process and organic products
with PUMA. When we started the pro ect, our goal are secured in all stages of production.
was to minimi e the environmental damage of the In the 2010 2011 harvest period, 25 million
conventional cotton production and to support tonnes of cotton was produced in the world.
pro ects, which would increase environmental Approximately 1% of this production consisted
awareness to prevent the destruction of natural of organic cotton agriculture. Although this may
resources in the future. seem small, it increases steadily every year and has
great impact on all textile production systems as a
What is Organic Agriculture? production philosophy. In 2010, 5% of the organic
According to IFOAM s (International Federation cotton grown around the world was produced in
of Organic Agriculture) basic norms, organic Turkey. According to data from Organic Exchange,
agriculture is a whole system approach based 80% of organic cotton production occurs in India,
upon a set of processes resulting in a sustainable Syria, China and USA.
ecosystem, safe food, good nutrition, animal SLN textile and dye units have been certified by
welfare and social ustice. Organic production GOTS, an independent accreditation organi ation.
therefore is more than a system of production In order to ensure that our products are produced
that includes or excludes certain inputs. By at the organic standards, our company was
definition, organic products do not contain certified with the global organic textile standard.
any toxic substances or pesticides, synthetic As of 2010, our organic production reached
fertili ers, sewage, radiation or genetic engineering 3,36 tonnes and constitutes 8,86% of our total
which damage the environment permanently. production.
business organization that focuses on
facilitating the growth of a global organic
cotton industry. It also reduces the usage
of synthetic fertilizer and pesticides in the
cultivation of cotton.
Africa Cotton
Organic Cotton
Regular Cotton
2009 2010 2011
Sustainability Report / | 35

37. SOCIAL PERFORMANCE
SOCIAL PERFORMANCE
Investing outside stanbul, it is also targeted to
All CSR pro ects which cover SLN s company policy and which are performed in the new units
also will contribute to their training on human and labour rights and will raise their
cultural level.
Implementing CSR pro ects which was targeted in 2011 and prepared in
which has been prepared together with Sogep and which covers new arrangements
about Human Rights and Labour law.
36 | Sustainability Report /

38. MANAGEMENT APPROACH given to workers together with SOGEP and A AV in
TO OUR SOCIAL IMPACT 2009. Our own training staff repeated these training
programs in the last two years. All of SLN s employees
Our Social Policies and Practices (100%) attended this training at least once in the last
three years.
s SLN we provide equal opportunities and In accordance with domestic laws, persons
W social rights to our employees in accordance
with the Turkish labour law, social security law, and
younger than 16 or those who have not completed
compulsory education are not employed as explained
the internationally accepted Global Compact. in the Code of Conduct. Young employees older than
In preparing and applying its policies with the 16 and younger than 18 are called unior employees
cooperation of our partners (i.e. our customers, and they have special working hours and breaks
consultants and NGOs), SLN committed to respecting established by law. Similarly, pregnant or nursing
fundamental human rights, the dignity and worth women en oy tasks, breaks and special arrangements
of human beings, the equal rights of men and suitable for their physical condition. They are under
women and to promoting social progress and better no circumstances asked to work overtime.
standards of life, as stated in the preamble of the SLN takes necessary measures to enable its
United Nations Universal eclaration of Human employees to work in a comfortable environment
Rights. SLN references the Global Compact principles without being exposed to mobbing and harassment
as a guide and focuses on them when carrying out its and trains its employees on this topic. In 2011, 21
activities. All matters and practices in force have been mid level and top managers received a 5 week
prepared in detail within SLN s social policies and training titled “Improvement of Communication
procedures and shared with our employees. SLN s Within the Company and Prevention of Mobbing
Code of Conduct forms the basis of all our policies. and Harassment.
Our leading principle here is non discrimination in SLN attaches great importance to the equality of
accordance with Global Compact Principle 6, which working conditions and takes necessary measures
states “the elimination of discrimination in respect of in this regard. We utili e a wage promotion policy
employment and occupation . In recruiting, waging, based on the qualities, professional pro ciency and
relocating or promoting its employees, SLN makes performance of our employees.
no distinction of any kind such as religion, language,
colour, race, sect, political view, ethnic origin, sex, Workforce
physical handicap, political or other opinions. It SLN Tekstil believes that a healthy and safe
treats all employees equally, protects their rights and workplace and happy employees lead to success.
regards human rights matters as a part of its daily High employee turnover rates in the textile industry
business operations. In order to train employees with and heavy reliance on manual skills make it very
regard to the non discrimination principle, a training di cult to nd and keep quali ed workers. In SLN,
which included the topics of “Improving Human we are aware of the importance of employees
Rights in the Work Place and at Home, Gender and loyalty and make our investments in human
Social equality, iscrimination Prevention was resources accordingly.
Sustainability Report / | 37

39. SOCIAL PERFORMANCE
SOCIAL PERFORMANCE
2010 – 2011 employee turnover rate
Resigning
Military
service
ismissal
Marriage
Total
Resigning
Military
service
ismissal
Marriage
Total
Retirement
Resigning
ismissal
Retirement
Employee Employee
50
40 Man Man
Woman Woman
35
40
14
30
25 30 31
40
20
20
15 7 24
10
11 10
4
5 9
2 5 5 5
0 0
gning ry missa
l
rriage irmen
t Resin
g issal
Resi Milita e Diss Ma Ret Dissm
c
Servi
Since SLN Boya is in a period of reorgani ation in 2011, the rate of employee turnover is generally high. It is expected to drop in future years.
38 | Sustainability Report /

40. Whenever an employee s contract is terminated
by the employer for any reason, minimum
noti cation periods foreseen by law are observed. As we stated in our previous report, all our
We provide and support training and self CSR activities are conducted in accordance with
improvement activities that improve our employees PUMA Safe management system in general. Their
professionally and personally. Our company regards compliance is continuously monitored through
supporting and empowerment of women labour internal and external audits. PUMA Safe is a social
as a part of its CSR activities. In Turkey, textile is and environmental compliance system. PUMA.Safe
one of the industries where female workers are includes the rules and expectations which suppliers
employed to a high degree. We in SLN encourage in the supply chain are expected to adhere to.
our young female workers to continue their PUMA structures the supply chain according to
education and provide support in this direction. Code of Conduct, monitors applications and audits
In this reporting period, 23 (12,43 %) of our them periodically. PUMA.Safe program focuses on
employees, most of whom are young female company rules and policies, employment policies,
workers, are enrolled in elementary school, high child labour, working conditions and times of
school or university. unior handicapped pregnant workers, working
As a continuation of this support, we are hours and breaks, wages, vested bene ts and
planning to o er English lessons to our employees overtime, promotions and transfers, termination
in manufacturing in 2012, a practice which is not of labour contracts, prevention of mobbing and
observed in our country very often and which we harassment, non discrimination, forced labour,
hope it will set an example. freedom of association, suggestion and complaint
policies, occupational health and safety, and
environment.
Company Training Program Per employee 2010 2011 GRI
Total OHS (Occupational Health and Safety) training Hours Year 18 97 LA10
Company Policies and Procedures Hours Year 6 12 LA10,HR3
Awareness Trainings (Energy e ciency, common diseases) Hours Year 4 8 LA10
Communication Improvement training (Managers) Hours Year 20 SO3
English (Administrative Sta ) Hours Year 208 LA10
Total Hours Year 236 137
Total Employees Unit 2010 2011 GRI
White collar personnel Employee 47 86 LA1
Blue collar personnel Employee 120 246 LA1
Total Employees Unit 2010 2011 GRI
Contract Employees with and Inde nite Period Employee 167 332 LA1
Employees with provisional contract Employee 0 0 LA1
Full time employees Employee 167 332 LA1
Part time employees Employee 0 0 LA1
Gender Unit 2010 2011 GRI
Male Employee 91 217 LA13
Female Employee 76 115 LA13
Age Group 18-30 30-40 40-50 50-60 GRI
2010 64 74 32 1 LA13
2011 128 134 70 0 LA13
Sustainability Report / | 39

41. SOCIAL PERFORMANCE
SOCIAL PERFORMANCE
Our Employment Procedure our employees within the scope of our companies
SLN has a fair employment and promotion facilities and strategies. Our remuneration system is
procedure, which does not discriminate people based on equality of opportunity and fairness.
according to religion, language, ethnic origin, age, Increases in salaries are made based on
civil status, sexual orientation or political view. economic indicators, legal increases and industrial
We only consider the professional knowledge and wage studies. The ratio of employees who receive
training of a person when employing him or her. minimum wage in SLN is 5,38%. Our company aims
The ratio of women in the workforce is a signi cant to be among the most preferred textile companies.
indicator in this regard. Our company provides all payments and bene ts
to its employees foreseen by the law. All our
employees en oy bene ts such as maternity and
death leaves, marriage bene t, food bene t, and
transportation and dinner bene t during overtime.
Our employees are assigned company vehicles,
computers and mobile phones based on the nature
of the work they do.
Working hours at SLN consist of 45 hours
per week as stipulated by applicable laws and
regulations. Any hours in excess are referred
to as overtime and paid in accordance with the
applicable laws and regulations.
35 % 65 % Freedom of Association
One of the Global Compact principles we focus
on is Principle 3 “Businesses should uphold
Due to the business culture, workers interest the freedom of association and the e ective
and the nature of the work performed at SLN recognition of the right to collective bargaining.
Boya, men are mostly employed in this unit. This At SLN we regard freedom of association as a
creates the impression that the number of female constitutional and democratic right. Accordingly,
SLN employees has decreased when compared to all employees are free to establish and become
previous years. In fact, this is a result of SLN Boya s members of associations, unions, and political
participation in the group. parties. Due to the fact that our employees are
SLN utili es an equal and fair wage policy. Men not members of any unions, and taking into
and women from di erent ages working in similar considerance PUMA s Safe and FLA s systems,
positions receive the same wage and en oy same which guide us in social matters, a “Worker
bene ts. Accordingly, when wages are analysed Representative is elected every year. These
based on employees, the rate of wages of male and representatives meet with Human Resources
female employees is 1. Social Compliance Manager once or twice a month
We sub ect our candidates to an ob ective regularly. The minutes of these meetings are later
evaluation process based on the competencies communicated to the top management and are
required by the industry and determined by our discussed in detail. Topics which are in conformity
company and pro ciencies required by the work. with company strategies and policies and which
The most important criterion in the employment are urgent for the employees are evaluated
procedure is the compatibility of the candidates to immediately and the results are announced to all
the corporate culture and values and the existence employees through notice boards. In this way the
of a potential, which will enable them to develop requests and complaints of the employees are
qualities in line with the goals of the company. directly noti ed to the management.
Our resources for employment are web based
human resources systems, individual applications Suggestions Complaints Policy
and candidates, which are suggested from within We regard employee satisfaction as one of our
the company. ma or goals. Our employees can communicate
All of our employees, including the top all kinds of opinions, suggestions, requests
management, are selected from the regions where and complaints directly or through worker
our production units are located. representatives in spoken or written form or
through the suggestion complaint boxes placed
around the company or they can send an e mail to
and Overtime Practices as stated in the Code of
SLN established a balanced remuneration policy in Conduct.
order to improve the quality and standard of life of
40 | Sustainability Report /

42. OUR SUPPLY CHAIN AND CONTRACT
“We have been working with SLN for a long
MANUFACTURER POLICY
n selecting its contract manufacturers, SLN
characteristic of the system for us is the product
I Tekstil expects compliance with the criteria it
set within the framework of the “Supply Chain
organization which should be made in a programmed
way that does not cause any problems regarding time
Compliance Policy . This was developed with and capacity.”
regard to PUMA.Safe and FLA compliance systems, –
which address social, occupational health and
safety and environment issues. We are aware
of the importance of establishing a sustainable
relationship based on trust with our business
partners. Therefore we expect our partners to
understand, accept and internali e our values.
To this end, we perform various information
and auditing activities to our contract suppliers
at di erent times through our “Supply Chain expect our suppliers to adopt a working system
Compliance Manager employed in the company. in which a wage policy that meets the basic
When selecting our contract suppliers, we needs of the employees and which comply with
attach great importance to compliance with domestic laws and regulations is applied, where the
Global Compact principle(s), social security employees work 45 hours per week in accordance
laws and fundamental human rights which are with the Labour Law No 4857, and where any work
internationally accepted and which we focus in excess of these is referred to as overtime and
on. Employees of the contract suppliers, which paid accordingly, and where at least one day of the
provide services to us through, purchase contracts week is accepted as holiday.
and service contracts must be insured within the As SLN, we commit that we will comply with
framework of the Social Security Law No 5510. We the principles stated in our Code of Conduct
and that we will require our partners in our
supply chain to do the same. No employee in
our supply chain will be discriminated against
Contract Supplier Diagram based on religion, language, ethnic origin, sect,
colour, sexual orientation or political view. Child
workers or minors who have not completed their
compulsory education cannot be employed. Young
employees (those older than 16 and younger than
18) are employed according to the social security
law and have special working hours and breaks.
Our suppliers encourage regular trainings and we
audit them periodically with our social compliance
manager.
In accordance with our Code of Conduct,
which was renewed together with our social
policy developed in 2010 2011, SLN required its
suppliers not to allow forced labour, mobbing
and harassment in their businesses. With the
participation of PUMA. Safe and SOGEP, a pilot
“We have been working with SLN for approximately 5 years. Our cooperation increased
every year. Their work takes up approximately 60-70% of our production. The most important
characteristic of SLN for us is that it is reliable and has a supporting nature. They act equitably in
case of a problem.”
–
Sustainability Report / | 41

43. SOCIAL PERFORMANCE
SOCIAL PERFORMANCE
pro ect which will include trainings on Human risky situations stated in the report, and to perform
Rights, Gender Equality and Labour Law will be and evaluate this analysis every year.
carried out in 2012 in Ha ar Tekstil Ltd., one of We condition our contract manufacturers
SLN s contract suppliers. PUMA will reimburse the within the framework of the environmental and
budget of the pro ect, which was initiated by SLN. sustainable development policies we determined
Employees in our supply chain are free to establish in order to minimi e our environmental impact and
and become members of and work actively in to contribute to the protection of nature. Our rst
associations and unions, and register in political aim is to reduce waste at its sources. Therefore all
parties. This is one of SLN s social compliance our contract manufacturers use the “Lean system,
terms. ust as we do in SLN. Here the main ob ective is
Within the scope of the service contracts we to reduce the waste ratios and utili e resources
make with our contract manufacturers, we require e ciently. Energy e ciency and waste separation
them to take necessary measures regarding is another step we expect our suppliers to take.
occupational health and safety. All our suppliers Through the monthly energy consumption and
are obligated to work with an occupational safety waste monitoring system, our suppliers are able to
engineering – consultancy company, to have study their environmental performance, ust like
necessary technical controls performed, to ensure we do. Our suppliers have been conditioned about
that occupational health and safety trainings are the disposal of the wastes as well. After separating
given, to provide personal protective equipment their waste, they donate paper and plastic to the
where necessary, to perform necessary health TEMA Foundation. They dispose of the other waste
controls of their employees, to establish an contractually in accordance with the environmental
in rmary in the workplace, to make a contractual legislation. At SLN Tekstil, we require our suppliers
arrangement with a hospital, to work with a doctor to give training on energy saving measures.
under a contract, and to employ a nurse who We expect them to raise the awareness of their
will be present at the workplace at all times, if employees in this regard.
possible. In accordance with occupational health The contract manufacturers, which work for SLN,
and safety regulations, our suppliers are required are a lar Tekstil, Ha ar Tekstil for sewing, Printsan
to build emergency exit lines and exit doors, which for printing and Efe Ege Tekstil for printing and
are illuminated su ciently, and to keep su cient embroidery.
amount of re ghting equipment in the workplace. According to PUMA s 2015 suppliers social
We expect our supply chain to have healthy targets, all PUMA suppliers (like SLN) should reach
and safe workplaces and happy employees. We the performance level A. According to criteria set
continuously control these through our audits. by PUMA, the levels range from D to A and all of
There was only one occupational accident with the supplier s subcontractors (in this case a lar
a minor in ury in our supply chain during the Tekstil, Printsan, Efe Ege Tekstil and Ha ar Tekstil)
reporting period, which supports this principle. should achieve the B level.
At SLN, we require our all contract manufacturers SLN is an A level supplier of PUMA and all its
to perform risk analyses in accordance with subcontractors achieved the B level.
regulations, to take necessary actions based on the
“All employees working at contract
manufacturers are insured and receive
minimum wage. However, overtime may
be problematic in certain times of the
year. I believe that 99% of the conditions
the announced and unannounced audits
conducted throughout the year.”
“There are problems regarding the
development of a management system
and environmental issues in contract
manufacturers.”
–
42 | Sustainability Report /

44. EMPLOYEE HEALTH AND SAFETY some machines or removed others if necessary
In order to catch the wind of change and to grow, precautions could not be taken. We introduced
we commit that we will be open to continuous precautions for smaller risks in short time and
development and relevant parties. In this process, prepared Action Plans for risks, which required
we are aware that occupational health and safety more time and investment.
is our greatest responsibility in our workplace and In order to increase awareness of our employees
in the workplaces of our contract manufacturers. regarding Occupational Health and Safety, we
To this end, our goal at SLN is a healthy and regularly carry out training programs.
safe workplace and ero (“0 ) work accidents. In Our company doctor and occupational safety
addition to complying with the legal arrangements consultant give these trainings, which are
concerning occupational health and safety, SLN performed according to the OHS regulation and
introduced several practices, which might set an legislation. In the survey in which we measured the Duygu Aytekin
example in the industry. In order to increase the e ciency of these trainings Dönmez, the
awareness about occupational safety, to control The Occupational Health and Safety Committee
the OHS risks in our company and to increase convenes regularly every month in order to assess “Particularly
the e ciency of occupational safety procedures, the current risks and to evaluate the completed the trainings
which are in use, we have established the OHSAS tasks within the scope of OHS. Human Resources concerning breast
18001 Occupational Safety System in 2009. We are and manufacturing representatives and worker cancer created
continuously controlling and managing our system representatives elected by the employees attend great interest and
according to this system. SLN Boya also received the committee meetings. The committee considers sensitivity among
the OHSAS 18001 certi cation after it oined the the actions to be taken that month, reviews the female employees.
SLN group in 2011. actions missing from the action plan, and discusses Women want
Employee health and occupational safety is the the measures that need to be taken. At the end of to learn more
responsibility of all employees at SLN. Employee the meeting, decisions are rendered which are then about this
health and occupational safety is as important as communicated to the management and necessary condition which
our other business goals. According to data from actions are taken. was frequently
Social Security Institution, 62.903 work accidents We control the compliance of the drinking water brought to public
occurred in di erent industries in Turkey. Of these, we provide to employees with the “Water Intended attention and the
3.474 (5,5%) occurred in the textile industry. Textile for Human Consumption requirement through methods for its
is the fourth or fth industry where work accidents the laboratory tests that are being conducted every early diagnosis
occur most frequently. six months. The employees working in the kitchen and treatment.”
In the rst year of reporting (2010), there were undergo periodical health examination every six
no work accidents at SLN. In the second reporting months in accordance with the domestic law.
year (2011), there were 2 work accidents with minor Employees working in the dye house are vaccinated
in uries. At SLN we believe that all accidents are for tetanus. All our employees undergo health
preventable. There were 4 work accidents in our control once a year in accordance with domestic
dye house in the rst half of 2011. However, as a laws.
result of the precautions we have taken, this gure Similarly, in accordance with the OHS
dropped to 2 in the second half of the year. applications, the company doctor and nurse give
In order to achieve our “ ero accident goal, awareness trainings to employees concerning
SLN hired a licensed occupational safety expert common diseases that constitute a risk.
accredited by T rkak to perform our risk analysis. Diseases covered by training programs types of
We listed the risks found by the expert according in uen a and methods of protection breast cancer,
to their severity and si e and took immediate methods of diagnosis and treatment prostate
measures for the severe risks we renewed cancer, methods of diagnosis and treatment.
Rates of absenteeism by our Textile Dye
2010 2011 2011
Total workforce 167 184 148
Annual working days 272 262 298
Total number of working days 45.507 48.300 44.178
Casual leave days 518 1.064 729
Sick leave days 962 456 539
Total number of lost days 1.480 1.521 1.268
Absenteeism rate 3,25% 3,15% 2,87%
Sustainability Report / | 43

45. SOCIAL PERFORMANCE
SOCIAL PERFORMANCE
also gave a speech about PUMA s code of conduct
“With this project, we aimed at increasing the and sustainability activities. The content of the
communication between the mid-level and top workshops which were organi ed within the scope
of the “Improving the Internal Communication
pro ect which was carried out in order to develop
the management s communication skills and
to create a more e ective and happy working
environment was developed by SLN Tekstil, SOGEP,
Communication within the Company and the PUMA.Safe Humanity representatives.
“E ective Internal Communication contributes SLN s management participated in this training.
to the pursuit of organi ational goals, the Five weekly training programs were carried out
strengthening of the feeling of internal during the course of this pro ect. The following
belongingness, the formation of a team spirit, topics were addressed in these trainings
the continuity of the motivation in the company Communication process and its importance
and the increase in total productivity. Moreover, it Equitable communication process
improves the dialogue conditions at the workplace Tips on e ective communication
and creates a more e cient work environment. Leadership
The strong communication among employees plays Stress Management
(sewing dept.) an important role in the creation of a successful Puma s Code of Conduct, Puma s Safe program,
“As a result of working environment. Puma s sustainability goals for 2015 and SLN s
these trainings Research indicates that the success of contribution to these goals were also addressed in
I learned many a manager is 85% dependent of his or her these trainings.
communications skills. At this point, the In addition to these ma or headlines, the internal
corrected all the communication skills of those in the management communication mechanism and its malfunctions
misbeliefs I had”. plan a vital role. Communication skills improve were also discussed. These discussions constituted
performance. In order for the communication the most productive parts of the group trainings.
process to be e ective, we need to regard the other The participants were actively involved in the
person as our equal. Equality means regarding the trainings and team work, group formation and
other person as important as us. Gender, status, simulation methods were frequently used.
cultural di erences all disrupts this equality. Moreover, an hour in every workshop was assigned
“Organi ational Stress Management , another to the internal communication mechanism and its
training given within the scope of the pro ect, is dysfunctional aspects.
also very important for productivity. Organi ational In order to assess the e ectiveness of the
stress management is possible only through pro ect, an attitude scale speci c to the topics
supporting the employees and team work, to be addressed within the pro ect and the goals
Canan Var,
improving working conditions, managing work of the pro ect was developed and applied to the
(packing dept.)
overload or too little work, and having open and participants before the beginning of the pro ect.
“I learned compatible role expectations. Participants lled the same attitude scale after the
a lot about Ceren Isat, the trainer from SOGEP (Social pro ect ended and the di erences between the two
occupational Development and Gender Equality Policies scales were evaluated. According to the results,
safety that I did Centre) gave a training titled “Improving the those who believed that their co workers did not
not know. I shared Internal Communication . Olgun Ayd n, who is understand them and those who believed that their
this knowledge the “humanity representative of the PUMA.Safe communication skills were insu cient decreased
with those around program, also observed this training. Mr Ayd n signi cantly. This demonstrated that the training
me.”
44 | Sustainability Report /

46. From SLN Tekstil
has reached its goals. employees were also very satis ed with these
Collective
Moreover, it was observed that the group trainings. A group of participants consisting of mid
Employee
trainings increased not only the communication level and top managers and some employees from
Dialogues
among people but also the trust they felt towards the model shop also attended these trainings.
each other. As the participants stated, coming
“We used to
together for the group trainings contributed to the OUR CONTRIBUTIONS TO work 12 hours a
improvement of communication ust as much as
day. Now we are
the content of the workshops.
working 8 hours
a day since SLN
Lifelong Learning Program – English Lessons Stakeholder Engagement
bought the dye
The purpose of this pro ect is to support the
house. The wages,
continuous employability of the employees and to ne of the most important aspects of “Corporate
have them learn a skill, which will help them at the
end of their careers, which is one of the GRI (Global
O Social Responsibility is the ethical and
responsible attitude of the companies towards
food and working
conditions
have improved
Reporting Initiative) sustainability indicators. Thus their stakeholders at their own will. Increasing
compared
we will contribute to the lifelong learning processes competition and global conditions forced the
to before.
of our employees. The importance of the lifelong companies to adapt to these new circumstances.
We regularly
learning concept has increased recently. Through Today, success is not de ned only in terms
receive trainings
published research studies, lifelong learning was of highest pro ts and lowest costs, because
concerning work
deemed necessary for occupational mobility and the companies are in cooperation with many
and workers’
personal improvement in a global economy and di erent institutions and actors (e.g. customers
health and the
competitive environment. and suppliers of a company, public and civil
environment.”
As a result of the globali ation of the world organi ations) at the same time. All of these actors
economy, companies started to extend their have di erent expectations from the companies.
operations beyond their countries of origin. In this context, Assoc. Prof. Dr. Dilek amant l From SLN Tekstil
Therefore, learning English, which is considered Nay r, Deputy Head of Department of German Collective
the common language around the world, is Business Administration at Marmara University, Employee
very important in this respect. The aim of these developed a pro ect analysing SLN s relationship Dialogues
trainings was to increase the quali cation of the with its stakeholders. This pro ect complemented
employees. These trainings were carried out with the other CSR pro ect developed for SLN for the “SLN is far more
the participation of a foreign instructor. CSR lecture. This pro ect aimed at uncovering SLN reliable than
The trainings were carried out between Tekstil s dialogue with its suppliers, and observing the companies
03.08.2010 and 03.08.2011. The attendants received the contributions of the social compliance we worked
208 hours of training where they improved their conditions SLN imposed to its suppliers. The pro ect with before.
reading, writing, listening and speaking skills. was carried out in a 3 month period (April – May We are very
They used books, laptops, posters, CDs, and other – une). 4 contract suppliers ( a lar Tekstil, Ha ar
learning tools during the lessons. Participants LTD. ti, Ha ar A. ., Printsan) that manufacture the work and
took a placement test at the end of the training to goods for SLN were interviewed personally. In employee health,
measure their level. these interviews, both SLN and its stakeholders payments and
The placement test showed that a great ma ority voiced their suggestions and complaints in order to insurance. We do
of the participants who knew English only at improve the communication between them. not experience
elementary level improved considerably. These The data obtained within the scope of the any problems
trainings were immensely useful for SLN who pro ect indicated that SLN has gained shortly after whatsoever.”
has many foreign connections and who always its foundation an important position on the textile
needs the language skills of its employees. The market and in relation to its suppliers.
“In order to be a sustainable company its necessary to integrate the subject into its
business strategy in all respects. Its not all about using the environmental friendly
products, the issue should be considered at each stage of the company operations
from purchase to sale...
and encouraging step”
–
Sustainability Report / | 45

47. SOCIAL PERFORMANCE
SOCIAL PERFORMANCE
All of the suppliers seemed aware that the
The trainings that are organized by SLN are very inputs they used had to comply with the standards
set by PUMA. Therefore, when they were
informative and useful for the employees. The choosing their suppliers, they picked the suppliers
company supports us in this regard continuously. determined and approved by SLN Tekstil.
The state and o cial organi ations are among
women. As a result of these trainings, we learned about the important stakeholders of companies and they
the rights women have during pregnancy, e.g. nursing a ect them considerably through law making or
leave, etc.” other activities. However, suppliers also stated that
they were exceedingly meeting the expectations
of o cial institutions and the state when ful lling
their customers requirements.
A common view among the companies All suppliers stated that their customers –
interviewed was that expectations of SLN Tekstil SLN Tekstil in particular – had certain social
were higher than those of other rms they worked responsibility pro ects. Apart from that, SLN
with. At the beginning, the suppliers thought provided material and moral support to its
that it was very di cult to meet SLN Tekstil s stakeholders so that they obtain the certi cates
expectations concerning the environment, needs of (such as ISO 9001) showing an increase in quality
the employees, and certain standards. However, in standards.
time they came to reali e that these expectations
were legitimate and that they bene ted both
sides. In this context, SLN Tekstil s expectations Students of Management and Organi ation
solved the customers already existing problems. Department of Business Administration Faculty at
They improved their working conditions, rights Marmara University and SLN Tekstil carried out a
and duties of the employees were systemi ed, oint corporate social responsibility pro ect.
insurance problems were eliminated, and legal In this pro ect, which was carried out within the
responsibilities were ful lled properly. At the end scope of the CSR (Corporate Social Responsibility)
of these e orts it was determined that overall lecture taught by Assoc. Prof. Dilek amant l Nay r,
productivity had increased, which strengthened the students were asked to apply the theoretical
the bond between SLN Tekstil and its customer and information they learned in their lessons on a
ensured business continuity. company – SLN Tekstil. Thus, SLN would nd
Employees and partners of the companies, various opportunities to ful l its corporate social
which were analysed for the pro ect, also constitute responsibilities, and the awareness of university
SLN Tekstil s other stakeholders. It was discovered students regarding CSR would be increased. When
that two of these companies were family developing the pro ects, the students were inspired
businesses whereas the other two were regular by other pro ects applied all around the world. At
corporations. However none of them received the end, they created pro ects that were compatible
professional assistance from outside. In other words with SLN s nature and eld of activity.
they did not employ professional managers. It was Divided into groups, the students developed 3
also discovered that the level of education among pro ects titled “Sponsorship “Volunteering and
the employees was very low, a situation observed “Internet Access . Out of these three pro ects, SLN
throughout the industry. It is also a fact that the plans to implement the “Internet Communication
companies, which are institutionali ed, attach more pro ect in 2012. Moreover, SLN s management is
importance to improving the educational level of also considering implementing the other pro ects in
their employees. the following years.
and internalized. I believe SLN is very successful in this regard. Otherwise the projects run the risk
of not being sustainable within themselves.”
internalization, assimilation, and institutionalization of the subject matter. I believe that SLN’s
–
46 | Sustainability Report /

48. THE CONTENT OF THESE THREE
PROJECTS DEVELOPED BY STUDENTS
IS AS FOLLOWS:
1) Sponsorship
This pro ect, whose target group are
disabled persons, consists of three stages
“Ba c lar Handicapped Festival sponsorship,
“Handicapped Marathon sponsorship and
supporting the Engelliler Saray (Handicapped
Palace) being built in Ba c lar.
“Handicapped Festival sponsorship will bring
the local people and SLN together on a common
ground and raise the awareness of people
concerning the disabled. In the “Handicapped
Marathon , a marathon will be organi ed in
which national sportsmen and women, national
handicapped sportsmen and citi ens will
participate. SLN will sponsor this pro ect and
make the sportswear of the national sportsmen
who will run the marathon. will be established (Women s club, Children s Club,
Lastly, SLN will facilitate the construction of Travel Club, etc.) Weekly meetings will be held for
the “Handicapped Palace which is being built these clubs.
in Ba c lar. 250 ob opportunities will be created Under the “Health headline, employees will
once the Palace is completed. There will be a donate blood to the Red Crescent.
centre for the rehabilitation of the families of Under the “Environment headline, oint pro ects
disabled people. will be conducted with the TEMA Foundation
The general purpose of these pro ects is to (Memorial Forest).
demonstrate that all obstacles vanish once the Under the “Society headline, tailoring courses “We are like a
disabled are o ered necessary opportunities. will be opened for the housewives in the Ba c lar family here. We are
District in order to reintegrate them into the
2) Internet Communication society. As a result, women living in the region the communication
In this pro ect, which was developed for our will have learned a skill to support themselves. with the
disabled citi ens, SLN will produce t shirts management or
bearing the letters HET (“Hayat Engel Tan ma , 4) Volunteering 2 our chiefs. This is
which means “Life Without Obstacles ) and these In the last pro ect, one or more kindergartens so much so that
t shirts will be sold on the Internet. Moreover, within the Ba c lar district which are operated we know about
o cial Facebook and Twitter pages will be by the Municipality will be selected and moral the projects SLN
created to promote the pro ect. The t shirts and material support will be provided to them. conducts in relation
to the environment.
will be sold on online shopping websites such The maintenance, repair, painting, etc. needs
as “trendyol , “markafoni , “gittigidiyor etc. school bus needs table, stationary, toy, etc.
learned a lot
Most of the money coming from the sales of needs of these kindergartens will be ful lled
through the
the t shirts will be used for the reintegration of by SLN. It has been scienti cally proven that
trainings held
disabled citi ens in the society. Since this pro ect kindergartens help build a solid foundation for within the
is compatible with SLN s product range and will further education and signi cantly contribute company. Enver
bene t to the company in the long run, it has to their success later in life. During the pro ect, was one of them
stood out among others. Moreover, Internet and some of SLN employees devote parts of their and we both
social media play a very important role in our time to the pro ect. Volunteering employees applied our
daily lives. A campaign carried out through social will constitute the workforce of the pro ect. knowledge in our
media will be much more e ective. In this context, improvement of the physical daily life and told
conditions of the kindergarten will increase the it to our friends.
3) Volunteering 1 quality of the education children attending to the Thus we not only
This pro ect, which also integrates SLN employees, pro ect schools are receiving. This pro ect aims contributed to the
consists of four parts. The headlines of the pro ect at sociali ing the employees, increasing their workplace but to
are “employees , “health , “environment and social and individual awareness, environmental people around us.”
“society . It aims to produce bene ts for the consciousness, and helping them become SLN Tekstil
various groups of the society at minimum cost. individuals who contribute to the society, Employee
Within the scope of this pro ect to themselves and to the company and the Representative–
Under the “Employees headline, social clubs corporate social policies of the company. Burcu Kurt
Sustainability Report / | 47

49. ENVIRONMENTAL PERFORMANCE
ENVIRONMENTAL PERFORMANCE
Following the relocation of the cutting unit, transportation between departments will be considerably reduced by means of proper
planning and thus, carbon emission will decrease. Locating the cutting unit at the dye house area
Thanks to the energy efficiency pro ects and their implementations at our subcontractors,
(ORDU) will generate employment in Anatolia and will help
employees relocate from stanbul to Anatolia. These pro ects also provide support for the city planning pro ects of stanbul. If a sector
with a high demand for workers such as the ready made clothing sector is moved outside stanbul, this will both contribute to a
decrease in stanbul s population and to the city s environmental planning.
by means of the energy saving pro ects to be implemented at SLN Tekstil.
The purchase of machines running with a low rate of water will continue. These Investments together with other technical
optimi ation processes
Installing advanced treatment systems at the wastewater treatment plant. The purpose here is to
48 | Sustainability Report /

50. Our Environmental Management Practices
MANAGEMENT In 2009 we integrated ISO 14001 Environmental
Management System into our operations, in
APPROACH TO OUR addition to the ISO 9001 uality Management
System, which played an important role in the
ENVIRONMENTAL continuity of our production quality. Within this
framework, our “Sustainability Team is in charge
IMPACT of auditing our Environmental Management System
in addition to economic and social factors and to
monitor the company s negative impact on the
environment. Our Sustainability Team develops
Our Environmental Policy environmental protection activities and pro ects
We at SLN strive to minimi e our negative and prepares a regulatory and preventive action
impact on the environment without making any plan. It also keeps the top management informed.
compromises in the quality of our products. We In addition to our Environmental Management
are aware that natural resources must be used System, we have also obtained the eko Tex
effectively and efficiently so that the future Standard 100, Organic Cotton OE Standard 100,
generations benefit from them ust as we do. To Organic Cotton OE Blended and GOTS (Global
this end, we have adopted the following principles Organic Textile Certificate) certificates, which
To comply with the domestic environmental are acknowledged both in our industry and
legislation and to take steps which are not even internationally. This underlines the fact that our
required by the law. products are eco friendly and chemicals that are
To use natural resources and all kinds of energy ha ardous for health and environment are not used
resources as effectively and economically as at any stage of our production.
possible. Aware of the fact that a sustainable economic
To minimi e the negative impact of our activities growth is possible only through effective
on the environment and the human health. use of resources, our company is monitoring
To achieve measurable and continuous all natural resources it is utili ing during its
development in every area related to environment. production activities (including those of contract
To determine environmental dimensions and all of manufacturers) through 4 ey Performance
our different environmental aspects. Indicators on a monthly basis. These key indicators
To minimi e pollution and waste and ensure the are energy consumption, water usage, fuel usage
disposal of ha ardous wastes after minimi ing their of company vehicles and solid wastes. The data
environmental impact. obtained as a result of these examinations are
To give trainings to raise the awareness of our evaluated by the top management at the end of
employees and our contract manufacturers and to every year and short and medium term production
encourage them to apply these principles. and investment decisions are made.
To lay down company goals and ob ectives in line The ey Performance Indicators ( PI) we are
with these principles, to review them every year monitoring are entered to Puma.Safe Ecology s
and to announce the progress achieved. Enablon system every six months as necessitated
To improve our environmental management by the Puma.Safe.Ecology system
system in the light of these principles. Enablon is a software system developed to
Sustainability Report / | 49

51. ENVIRONMENTAL PERFORMANCE
ENVIRONMENTAL PERFORMANCE
monitor the impact made on the environment ve onfeksiyon units. SLN Boya is not included in
as a result of production activities. By entering the system.
the required data to the system, the energy The charts below give an overview of SLN s 2011
consumption, solid and liquid waste amounts, and water, energy and waste consumption per unit in
wastewater ratios of companies can be monitored comparison to the 2010 average benchmark and
and the resultant ecological footprint can be PUMA s 2015 target calculation started in 2010 and
automatically calculated. The data then is compared PUMA set targets for SLN for each of the three
and analysed periodically. Calculations are based on criteria (water, energy and waste). SLN is responsible
the number of employees and the total area of the for reaching those targets until 2015. According to
companies. PUMA s environmental targets, each supplier should
Enablon covers for the moment only SLN Tekstil reduce its environmental impacts by 25%.
SLN ENVIRONMENTAL PERFORMANCE ACCORDING TO PUMA ENABLON PROGRAM
100
liter/ pair or pc
Average 2010 Benchmark: 90 litre/pair or pc
80
2015 Target: 70 liter/pair or pc
60
40
20
0
ary ary ch l ust ber ber ber ber
Janu Febr
u Mar Apri May June July Aug Septem Octo Novem Decem
1,5
kWh/pair or pc
Average 2010 Benchmark: 1,30 kWh/pair or pc
1,2
2015 Target: 1 kWh/pair or pc
0,9
0,6
0,3
0,0
ary ary ch l ust ber ber ber ber
Janu Febr
u Mar Apri May June July Aug Septem Octo Novem Decem
80
grams/pair or pc
70
Average 2010 Benchmark: 70 grams /pair or pc
60
2015 Target: 50 grams /pair or pc
50
40
30
20
10
ary ary ch l ust ber ber ber ber
Janu Febr
u Mar Apri May June July Aug Septem Octo Novem Decem
50 | Sustainability Report /

52. Turkey signed the yoto Protocol in 2009. these sections.
Although the country does not have an emission Furthermore, although domestic environmental
reduction commitment for the 2008 2012 period, laws require Indoor Emission Measurements (dust
we at SLN have been measuring our carbon measurement) to be performed once in every 3 years,
footprint since 2009. We have been trying to we at SLN have been measuring them every year.
determine our impact on the climate and to
implement relevant action plans to reduce our Raw Material Use
emissions. Energy and raw materials are extensively used in
There is detailed information about the the textile industry. As a result, we are making
pro ects that were developed with regards to every effort to use resources effectively, to
emission measurements and water and energy purchase them according to legal procedures, and
efficiency in the later parts of the report. Relevant to select our suppliers accordingly.
environmental indicators are also addressed in SLN provides its raw materials by working with
Unit
g. 1.019.655,00 1.169.770,00
Meter 19.113,00 45.539,00
Item 15.401.828,00 14.950.924,00
Item 9.902.568,00 8.042.435,00
Item 4.694.654,00 7.297.050,00
Item 3.276.434,00 2.781.991,00
Item 129.745,00 97.545,00
Item 3.395.988,00 3.939.256,00
Item 123.280,00 123.647,00
Meter 53.170,00 97.960,00
Coil 21.440,00 22.550,00
Unit
SALT g. 5.773.845
g. 230.000,00
g. 95.000,00
g. 50.000,00
g. 75.000,00
g. 90.000,00
g. 1.300,00
g. 4.500,00
g. 15.000,00
g. 1.800,00
g. 3.500.000,00
g. 70.000,00
g. 8.500,00
g. 15.000,00
Unit
g. 15.000,00
g. 90.000,00
g. 70.000,00
g. 115.000,00
Sustainability Report / | 51

53. ENVIRONMENTAL PERFORMANCE
ENVIRONMENTAL PERFORMANCE
suppliers that stand out not only because of their ha ardous wastes are collected when the total
quality and price policies, but also because of amount reaches 50 kg. At that point Evciler imya
their environmental and social practices. There are Madencilik ve At k Ayr t rma and Anel Doga
both domestic and foreign companies that supply Entegre companies are collecting from SLN the
SLN with raw materials. Some of these companies electronic waste for disposal.
are Dystar, Seta , Rodolf and CHT from which we
purchase our dyes and auxiliary agent chemicals.
In choosing the most suitable and efficient Non ha ardous wastes such as waste paper,
materials for our production processes, we are cardboard, cylinder and plastic are collected in
constantly cooperating with our suppliers and separate recycling boxes that are located in every
value their opinions of our company. department. These waste papers and cardboards
are packaged and then collected by Tema
WASTE MANAGEMENT Foundation for recycling or reuse.
All cardboard boxes used within the company
At SLN, our main goal when performing our are made from recycled materials.
activities is to use all resources effectively and Our nylon wastes that come into the company
efficiently. To that end we defined the different wrapped around cloth batches are collected in a
types of waste we are generating and the damage separate area in our waste unit. Our non ha ardous
they may cause to the environment. In order to nylon wastes are collected by ahraman Hurda ve
raise the awareness of our own employees and Metal Company every month.
of the employees of our contract manufacturers Our fabric waste originates form cut cloth or
regarding recycling and the effective use of clippings and second grade clothes produced at our
resources, these are trained every year on waste company. After being processed, they are made
separation and recycling into fibres to be used as filling material and used in
SLN commits to implementing the activities home textile products. Deni Otomotiv collects our
below in order to fulfil its environmental and cloth wastes every two weeks.
social responsibilities and to make its employees SLN employees see these waste papers as trees
responsible in this matter. saved.
Electrical – electronic waste Chemical Waste
Ha ardous wastes such as fluorescent lamps, We strive to minimi e our use of dyes, auxiliary
condensers, starters, electric cables, printers, chemicals, salts and volatile substances utili ed
etc. are kept in a special area and put in special as raw materials in the production process. These
packages to be sent to authori e collectors. The chemicals are preserved in the Chemical Dye Store
52 | Sustainability Report /

54. in accordance with the environmental legislation "SLN Boya purchases 80% of its dye spectrum
concerning their storage and the conditions from our company. In order to serve them better, we
of occupational health and safety chemical
storage rules. Wastewater pools and channels are
attach great importance to the placement of orders
supposed to prevent the leakage of wastewater systematically in advance."
and ha ardous materials and thus damage human –
health and environment.
Our chemical waste is preserved within the
closed chemical waste area inside our waste unit.
Our contaminated chemical barrels are collected by
i ek At k D n m company every 20 days and
are disposed of. Our contaminated nylon and paper
wastes, on the other hand, are collected by Evciler into granules after going through certain processes.
imya Madencilik ve At k Ayr t rma company every Nylon garbage bags or plastic kitchen utensils can
six months and disposed of. The chemical barrels be produced from this raw material. The packaging
and chemical tanks (IBC) (plastic barrels used by waste collected from us is transformed into second
the companies we work with to transport chemicals grade garbage bags and sold on the market.
and which are put in iron cages and have a 1000 kg
capacity) are collected by companies authori ed by Domestic Waste and Waste Oil
the Ministry of Environment. The domestic waste produced at our company is
The users and employees are informed collected in nylon bags at the end of the day. These
about these chemicals that contain carcinogenic bags are then sealed and put in containers provided
substances through MSDS reports. They are also by the local municipality for disposal and recycling.
given trainings about them and provided with Ba c lar and B y kkar t ran Municipalities collect
necessary personal equipment in accordance with these containers from our company twice a week.
the MSDS information. Waste oil produced at our company is stored
in the waste unit of our company. Chemical waste
Packaging Waste oil from machinery maintenance is separated
The packaging waste from our company is collected accordingly and disposed of by o a S nai Ya ,
by ahramanlar ve ayk s lar Company with whereas vegetable oil from the kitchen is separated
delivery note and invoice. This waste is transformed and disposed of by o a Geri a an m.
Sustainability Report / | 53

55. ENVIRONMENTAL PERFORMANCE
ENVIRONMENTAL PERFORMANCE
RELEVANT SECTION CONDITIONS AT THE MAIN WASTE
WASTES
REGULATIONS STORAGE AREA
STORAGE CONDITIONS
Contaminated Wastes Regulation on the Must be collected in sepa Ha ardous wastes must be stored in the
Control of Ha ardous rate vessels in the unit temporary storage area
Wastes
O ce waste paper, Regulation on the Waste paper container Must be stored in the temporary storage
Cardboard, Nylon Control of Packaging and area
wastes Packaging Waste
Waste oil (Used after Regulation on the Con Waste oil tank Ha ardous wastes must be stored in the
the maintenance of ma trol of Waste Oils temporary storage area
chinery and equipment)
Waste battery Regulation on the Waste battery container Ha ardous wastes must be stored in the
Control of Used Batteries temporary storage area
and Accumulators
Fluorescent Regulation on the Waste uorescent Ha ardous wastes must be stored in the
Control of Ha ardous container temporary storage area
Wastes
Adhesive Packages Regulation on the Con Waste paper container Ha ardous wastes must be stored in the
trol of Ha ardous Wastes temporary storage area
Electronic Wastes Regulation on the Con Electronic waste container Ha ardous wastes must be stored in the
trol of Ha ardous Wastes temporary storage area
Packaging Wastes (Pa Regulation on the Waste paper container Must be stored in the temporary storage
per, Cardboard, Nylon, Control of Packaging and area
Metal, etc.) Packaging Waste
Metal Wastes Communiqu on Recy Ha ardous wastes must be stored in the
cling of Some Non Ha temporary storage area
ardous Wastes
Waste Accumulator Regulation on the Con Ha ardous wastes must be stored in the
trol of Used Batteries and temporary storage area
Accumulators
Composite Waste Regulation on the Separate waste containers There is a closed top concrete ground
Control of Packaging and are kept in the unit composite waste area which is outside
Packaging Waste the main building, which can contain
large amounts of waste, and where
leakage and rain water drainage lines are
separete.
Vegetable Oil Waste Regulation on the Con Waste oil container kept in Ha ardous wastes must be stored in the
trol of Waste Vegetable the cafeteria temporary storage area
Oils
Fabric Waste Communiqu on Recy Separate Waste containers Ha ardous wastes must be stored in the
cling of Some Non Ha are kept in the unit temporary storage area
ardous Wastes
Medical Wastes Regulation on the Con Collected in the Medical Ha ardous wastes must be stored in the
trol of Medical Wastes Waste Container in the temporary storage area
in rmary
Waste Water Regulation for Water Pol Waste water channel Waste water channel
lution Control
Emission Regulation on Industrial Released to atmosphere
Air Pollution Control from chimney
Sludge Regulation on the Con At the treatment plant Ha ardous wastes must be stored in the
trol of Ha ardous Wastes temporary storage area
54 | Sustainability Report /

56. DATE OF OFFICIAL QUANTITY
EXPLANATION
METHOD OF DISPOSAL GAZETTE (kg)
(ACTIONS TO BE TAKEN AS PER REGULATIONS) LAW
Recovery Must be given to a licensed plant. Waste declaration 14,03,2005 7.565
(RDF ont. At k Bertaraf – form is lled online at the end of every year. 257555
S reko At k Y n. Nak.)
Recovery Must be given to licensed companies as per Regula 8 24 11 29.655
(TEMA Foundation, ahraman tion on the Control of Packaging and Packaging Waste 2835
Hurda Metal – ayk s Hurda)
Recovery Must be given to licensed companies as per 30,07,2008 NA
( o a S nai Ya lar) Regulation on the Control of Waste Oils. Waste oil 26952
declaration form is lled at the end of every yerar and
submitted.
Disposal Must be given to licensed disposal plant. Declaration 31,08,2004 NA
(TAP) Moveable Battery Produc is made at the end of the year. 25569
ers and Importers Association
Disposal Must be given to a licensed disposal plant. Waste 14,03,2005 111
(Evciler imya Anel Do a declaration form is lled online at the end of every 25755
Entegre) year.
Disposal Must be given to a licensed disposal plant. Waste dec 14,03,2005 NA
(Ekolo ik Ener i) laration form is lled online at the end of every year. 25755
Recovery Must be given to a licensed disposal plant. Waste 14.03.2005 400
(Evciler imya Anel Do a declaration form is lled online at the end of every 25755
Entegre) year.
( ahraman Hurda Metal Must be given to lincensed companies as per 24.08.2011 13.750
ayk s Hurda) Regulation on the Control of Packaging and 28035
Packaging Waste
( ahraman Hurda Metal) Must be given to a licensed disposal plant. Waste 17.06.2011 2.880
declaration form is lled online at the end of every 27967
year.
Disposal Must be given to licensed disposal plant. 31.08.2004 NA
(Ak der) 25569
Recovery Must be given to licensed plant. Non ha ardous 24.08.2011 37.500
( ayk s Ticaret) declaration form is lled at the end of every year. 28035
Recovery Must be given to a licensed plant. Waste declaration 19.04.2005 NA
( o a Geri a an m) form is lled online at the end of every year. 25791
Recovery Must be given to a licensed plant. Non ha ardous 17.06.2011 161.060
(Deni Otomotiv) declaration form is lled at the end of every year. 27967
Disposal Medical Wastes are transported and disposed of by 22.07.2005 NA
(Asr n T p Merke i) vehicles and institutions organi ation which are 25883
licensed by the Ministry.
Treatment Plant Limit values must be met. Samples are taken 31.12.2004 All of service
from treatment plants every month and analy ed. 25687 water
Discharge license is renewed every 5 years.
Necessary emission measure After limit values are met, emissions are released 03.07.2009 Dye House
ments are made by ev Dan to the atmosphere. Renewed every time process is 27277 Chimney gas
Hali evre Company licensed changed, capacity is increased, emission is changed, emission
by the Ministry of Environment coordinates are changed. Tested once in every 3 values
years.
Recovery Must be given to licensed disposal plant. Tests are 14.03.2005 8.600
(Bumerang At k Bertaraf) conducted every year and results are indicated in the 25755
waste declaration form, which is submitted.
Sustainability Report / | 55

57. ENVIRONMENTAL PERFORMANCE
ENVIRONMENTAL PERFORMANCE
WATER USE 14.000 kg fabric is dyed daily. All of this water is
given to the waste water system after processing.
The procedure of dyeing requires a lot of water.
As a result, textile is one of the industries which Heat Recovery from Waste Water
impact the environment to a great extent due Before the hot water created during the dyeing
to the abundant use of water and the amount of processes is given to the waste water system, its
wastewater produced. heat energy is used through the heat recovery
Through the machinery replacement and process system. The amount of water heated through the
optimi ations we performed in the dye house we energy from wastewater is 590 m3.
purchased in 2011, we strived to minimi e the With this system, the amount of energy (steam
amount of water and energy we used. Our activities energy) necessary to heat the process water
in this eld will continue to be one of our main decreased by 60%. In parallel to this, the system
priorities. reduces the amount of steam used in the entire
The wastewater used in SLN Tekstil and plant by 20 25%.
onfeksiyon is given to the sewage system of the An overview of the heat recovery system: The
municipality. hot waste process water from the dyeing machines
is accumulated in retention ponds. The clean water
that is later used in dyeing processes is circulated
There are two water wells on our premises. One of around this pool through thin plates or pipes and
them has a 73 m3 h capacity whereas the other has the heat recovery is achieved (this is called heat
a 60 m3 h capacity. According to the performance exchange). The water used in dyeing processes is
of the plant, one of them is operated as the usually 90 130 degrees C. Transferring this water
primary well while the other one is operated as to the waste water system without recovering this
replacement. heat would mean a severe loss of energy.
After the initial treatment, the water drawn from The wastewater cannot be used as process water
the well is then sent to soft water retention ponds again since it is coloured and impure, however, its
for processing. energy is re used through the heat transfer system.
During the fabric dyeing process, 84 lt. water is After the heat recovery process, the water sent
used to dye 1 kg of fabric. to the treatment system is cooled down below
As a result of the renovations we carried out 35 degrees C, which facilitates the treatment
in 2011, the processes were re arranged and new procedure. This system lowers the energy
machinery was brought in. As a result, the amount consumption and the amount of emissions created
of water necessary for dyeing 1 kg fabric dropped by the company.
to 70 lt. The goal for 2012 is to use 60 lt. of water.
We are in the process of purchasing the required SLN Boya Water Treatment System
machinery and improve the dyeing processes. The wastewater, which is produced as a result
980 m3 water is consumed in our plant where of the production processes in the dye house, is
carried by the wastewater channels and circulated
Sln Tekstil through rotating drum lter and its bres are
Unit 2010 2011 GRI removed. The water coming from here passes
Water consumption m³ 2.430 2.636 EN8 through the heat recovery system where its heat
Sln Boya is decreased and carried to the treatment plant via
channels.
Unit 2011 GRI
The wastewater treatment is completed through
Water consumption m³ 310.000 the biological treatment system and returns to
56 | Sustainability Report /

58. nature at values stipulated by the Ministry of causes severe pollution with its colour, odour and
Environment. The amount of wastewater returned looks, despite being treated at conditions stipulated
to nature almost equals the amount of water used by the Ministry of Environment.
(sama for the water lost or evaporated during This pollution is widely observed in the Ergene
production). Basin of the Thrace Region, where our plant is
The solidi ed sludge produced as a result of the located. The textile factories consume the natural
biological treatment system is packed and stored spring waters and cause serious pollution.
in the special storage area in our plant at values Various measures are taken in this regard.
stipulated by the Ministry of Environment. This The Ministry of Environment is developing new
sludge is collected by Bumerang At k Bertaraf and procedures concerning water treatment systems.
disposed of every three months. One of these procedures require that the factories
Companies that produce concrete usually use render their dyeing water colourless and odourless
the sludge. through di erent treatment systems before
returning it to nature.
ERGENE BASIN
The waste water produced as a result of the dyeing
process and returned to nature through streams
Sustainability Report / | 57

59. ENVIRONMENTAL PERFORMANCE
ENVIRONMENTAL PERFORMANCE
ENERGY USE SLN Boya Electricity and
It is known that the textile industry is very energy
intensive. Therefore the e cient use of energy at SLN Boya s electricity and steam energy is supplied
every stage of the production is very important and from the cogeneration system established by
essential both for the reduction of costs and of the orlu Energy, which in turn increases the company
environmental impact. expenses. However, this arrangement prevents the
In SLN Tekstil ve onfeksiyon, located in electricity distribution and transmission losses as well.
Istanbul, electricity is directly taken from the grid. In a cogeneration system, the steam is obtained
Steam generators that run on electricity produce by turning the waste heat, which is produced
the steam. The building is heated with natural gas. during electricity generation into steam energy.
In SLN Boya, located in L leburga Therefore the steam used in our company is a
B y kkar t ran region, the electricity and the recycled product.
steam energy used at the plant are provided by
orlu Ener i Elektrik retim A. ., which is located Cogeneration System
next to our company. Due to the fact that steam Cogeneration is the generation of both electricity
is purchased, no steam generator exists in the and steam energy in the same system. This
plant. The natural gas consumed in the factory is arrangement leads to very economic results
necessary for operating certain machinery and the compared to the generation of electricity and steam
quantities are very low compared to other factories. separately at di erent locations. A gas turbine
We use diesel fuel or gasoline in the vehicles that only generates electricity can transform only
used for transporting employees or products. 30 40% of the energy it uses. When a cogeneration
system is used, on the other hand, most of the heat
energy to be discharged from the system may also
be utili ed. This waste heat is then transformed into
steam energy, which results in the utili ation of the
energy input at 70 90%. This technique is called
“Combined Heat and Power Systems (CHP) or
“cogeneration in short.
SLN BOYA ENERGY SAVING PRACTICES
Changes in the Machine Park
Dyeing Machines
The liquor ratio, which is used during fabric dyeing
processes carried out in certain dyeing machines,
is 1 7. However, this ratio drops to 1 5 in the new
dyeing machines we purchased. As a result of the
special designs of the new machines, the amount
of water that directly contacts fabrics is minimi ed.
Unit 2010 KJ 2011 KJ GRI
Electricity Consumption kWh 381,464 1,373,270,400 373,195 1,343,502,000 EN4
Steam Consumption m³ 9.2 23,111,136 9.5 23,864,760 EN4
Natural Gas Consumption m³ 5,745 198,438,619 8,367 289,005,383 EN3
Vehicle Diesel Consumption (Shuttle busses, Liter 30,841 1,097,563,339 35,968 1,280,021,990 EN3
Transportation Vehicles)
Vehicle Gasoline Consumption (Shuttle Liter 7,622 252,103,137 11,349 375,376,346 EN3
busses, Transportation Vehicles)
Unit 2011 joule GRI
Electricity Consumption kWh 4,554,000 16,358,400,000 EN4
Steam Consumption m³ 26,056 65,454,756,480 EN4
Natural Gas Consumption Sm³ 1,201,681 41,507,383,589 EN3
Vehicle Diesel Consumption (Shuttle busses, Liter 12,429.80 23,864,760 EN3
Transportation Vehicles)
58 | Sustainability Report /

60. This results in a decrease in the liquor ratio. The environment for the employees.
bene ts of this decrease are as follows: Since the chemicals used in the plant are sent
The amount of water used in dyeing process to the machines untouched by humans, chemical
decreased by 30%. work accidents caused by human factor will be
Since the water that needs to be heated for this prevented.
process decreases, the steam to be used for heating The workload of dye operators is decreased, as a
decreases by 30%. result of which the workforce will be scaled down.
The amount of chemicals to be used decreases by
30% as a result of less water usage. Maintenance of the machinery and pipelines
The amount of wastewater decreases, which takes The entire factory underwent general
the load o the treatment plant and decreases the maintenance and repair in 2011. Below are some
amount of energy used for treatment. of the improvements, which resulted in energy
The replacement of machinery will be completed by savings:
2012 13. Steam traps in the factory (an apparatus which
prevents steam leakages in the steam pipeline)
Chemical and Dyeing Automation System are controlled and changed. As a result, 10.753 kg
The following systems were established in the dye steam leakage per day was prevented and a 10%
house: steam saving was achieved.
Barcode controlled weighing, solution and The open width levelling drying machine
distribution system for the Powder Paint. circulation fan revision. With this maintenance,
Fully automated measurement and distribution 324.000 kWh electricity will be saved annually
system for liquid chemicals. based on the assumption that the machine is
Fully automated weighing, solution and operated 12 hours a day, 300 days a year.
distribution systems for powder chemicals. Cylinder changes in the ram machine: the power
transfer systems decreased as a result of this
maintenance, which in turn lowered the energy
Rapid measurement of the chemicals and dyes consumption.
and their transfer to the machines.
Ensure the timely and correct weighing of the Optimizations in the dyeing processes
formulas used in dyeing machines. As a result of the optimi ations made in the dyeing
Prevent wastes resulting from manual operation. processes, the process times decreased, and less
Eliminate contamination in the Dye and energy and water were consumed as a result of
Chemical itchen and create a healthy working lower temperatures and smaller number of baths.
Sustainability Report / | 59

61. ENVIRONMENTAL PERFORMANCE
ENVIRONMENTAL PERFORMANCE
SLN Tekstil ve Konfeksiyon Energy Saving
Practices In November 2011, Altensis BES Ener i
Below are our practices carried out in the reporting Dan manl k – Leed and Breeam Certi ed – was
period to minimi e our negative impact on the hired to carry out the energy audit of SLN Tekstil s
environment: management building. Energy audit is an extensive
All lighting systems in common areas were analysis of the energy use in the buildings. The
changed into motion sensor lamps. purpose of the audit is to determine the most
Lamps in all o ces and manufacturing areas were useful opportunities for increasing the e cient
changed with energy e cient uorescent lamps. use of energy based on the needs of the company.
15 sewing machines were replaced with new ones The building was audited in accordance with the
which resulted in 60% energy saving. national and international auditing principles. The
Softening lters were installed to the water used scope of the audit includes:
in our steam benches and laboratories. These lters HVAC Systems
soften the water and allow them to get hot fasters. Compressed Air Circuit
The energy saving achieved here is approximately Steam Boiler
20%. Lighting systems and lighting controls
All pipes carrying steam to self boiler ironing Various energy e ciency measurements have
benches were isolated in order to prevent energy been used to perform the analyses and to o er
leakages. alternatives to increase the energy performance of
Believing that we cannot manage the data we these systems. These measurements included: heat
cannot measure, we hired Altensis Bes Ener i analysis of systems, power factor, compatibility of
Ltd. in the reporting period to measure our electrical circuits and energy usage.
energy e ciency. During this measurement, the The tables below demonstrate the energy usage
heating and cooling systems, pressure air systems, in the SLN Management Building according to
the steam generator used in the production of di erent resources and their current states of cost
steam and lighting systems in our company were ratios.
examined. Since apparel manufacturing requires lighting
We gave “Energy E ciency, Water Economy and and use of electrical machinery, electricity is the
Environmental Awareness (“Enver ) trainings to all most widely used type of energy.
our employees and the employees of our contract The report prepared by Bes Energy at the end of
manufacturers. the audit was submitted to the management. The
We placed “Use Less Water signs in areas where suggestions for improving energy e ciency were
water is used. included in the company s program for 2012.
We switched to diesel powered company vehicles, Some of the suggestions included in the report
which cause less CO2 emission. are: elimination of de cient isolation in certain
parts of the building, installation of thermostatic
Energy Cost % valves to radiators, use of 100% electronic
ballasts, development of energy e ciency training
programs.
Energy Cosumption %
NATURAL GAS
ELECTRICITY
60 | Sustainability Report /

62. "Following the
Enver training,
our main topic of
discussion became
the projects for
achieving energy
homes. With
this training
we learned
information that
will help us to
reduce the natural
gas and electricity
bills during the
winter.
As a result of
the trainings we
received about the
environment, our
and Natural Resources.
environmental
The “ENVER Pro ect (Energy E ciency), which is The purpose of the training was to raise the
consciousness
carried out by the Ministry of Energy, was initiated awareness of the personnel in this regard and help
increased.
in order to increase awareness regarding energy them contribute both to their own economy and
We started to
e ciency. The mascot of the pro ect is a boy named to the economy of the country. The de nition and
separate our
Enver (En Ver is the short form of Energy E ciency) importance of energy e ciency, Turkey s situation
waste. Thanks
who stands for energy e ciency. Enver informs in this respect, the bene ts and methods of
to the trainings
people around him about the e cient use of energy energy e ciency were all explained during these
concerning
resources. trainings.
occupational
All our employees (including those at SLN Boya) It was intended that the brochures and
health and safety,
received a 2 hour training given by Ahmet kan, storybooks distributed help the employees to raise
we realized that
an electrical engineer, within the scope of this this awareness among their families and friends.
we are living in
pro ect. Brochures and booklets explaining the The surveys and interviews conducted
a world full of
Enver Pro ect were given to participants. These following the trainings generated positive
potential work
brochures were provided by the Ministry of Energy feedback about these trainings.
accidents and
that we should
take preventive
measures."
SLN Tekstil
Employee
Representative–
Özkan Özöç
Sustainability Report / | 61

63. ENVIRONMENTAL PERFORMANCE
ENVIRONMENTAL PERFORMANCE
CARBON AND WATER FOOTPRINT The e ects of global warming have become
Through our energy e ciency pro ects we evident in the last few years. Natural disasters such
conducted at SLN Tekstil and onfeksiyon in as droughts, oods, and storms are becoming more
2010 and 2011 we aimed at reducing our energy frequent. Rising temperatures endanger ecosystems
consumption and carbon emission. Our carbon and cause irreversible damages to mankind and
emission measurements of 2010 2011 demonstrate nature. The International Panel on Climate Change
that we have been successful in this regard. (IPCC), the nominated United Nations body for
Since we do not have any carbon emission data research on this issue, has revealed in its studies
regarding our SLN Boya unit for previous years, we that the increasing level of carbon emissions (CO2)
are unable to make a comparison with the past. The by human activity is the ma or driver of climate
emission data in this reporting period belongs only change. With increasing population and economic
to 2011. growth the demand for fossil fuels has risen in the
In this reporting period, our water footprint was last decades, leading to the release of more CO2
also measured in addition to our carbon footprint. emissions into the atmosphere. Surveys show an
increasing interest among consumers in addressing
The Carbon and Water Footprint Project this problem. For that reason, it is important that
“In 2009 SLN evaluated its Carbon Emission for innovative companies show their responsibility and
the company premises in stanbul, including take an active role in their leadership function. By
the transportation. For 2010 2011 the evaluation taking energy saving actions, those producers also
includes also SLN Boya and all of its subcontractors pro t from bene ts such as reduced costs as well.
in order to have the whole SLN s production Carbon To proactively manage its CO2 emissions and
Footprint. water consumptions and to support clients in their
Being an equally important indicator, the activities, SLN has evaluated its company carbon
Water Footprint was also included this year in the and water footprint for the year of 2010 2011.
evaluation.
“In general SLN emissions per piece are generally very low compared to other
continuous improvement.’’
–
SLN Boya (dyeing) 86%
Hazar Ltd. (sewing/subcontractor) 6%
a lar (sewing/subcontractor) 2%
SLN Tekstil onfeksiyon 4%
SLN Efe (pirinting) 2%
62 | Sustainability Report /

64. Carbon Footprint well as water costs were calculated for each of the
The company’s Carbon Footprint indicates the company divisions, respectively subcontractors.
total amount of GHG emissions which includes According to the results of the evaluation, all
both all direct emissions at the site of the units caused in total 4.882 tonnes CO2e emissions
company (e.g. boiler, generator), cars emissions, in 2010 2011, with the dyeing unit having the
as well as indirect emissions of purchased largest share (86%). This amount would be equal
electricity, heat or steam of SLN. Besides obtaining to the annual per capita emission of 1220 Turkish
a detailed overview of the company’s carbon citizens or 508 German citizens (4 tonnes of CO2
emissions, we also wanted to learn about the per year per capita in Turkey and 9,6 tonnes of
potential ways to reduce our emissions. Systain CO2 per year per capita in Germany).
Consulting carried out the carbon footprint SLN Tekstil and onfeksiyon succeeded in
evaluation as it was in 2009. In 2009, the reducing its absolute, as well as relative carbon
results were included into the SLN Sustainability footprint. Comparing the total emission between
Report 2009. For this reporting term, the data 2009 and 2010, the total emission decreased by
were updated and the scope was enlarged with 7%, from 302 tonnes in 2009 to 280,2 tonnes in
including new units and also subcontractors. 2010. The company’s target of emission reduction
Additionally the water footprint has been assessed was 10% in 2009, which means we have almost
into the report. reached our target.
The footprint calculation includes data from The chart below shows the share of CO2e
SLN Tekstil ve onfeksiyon, SLN Efe (printing), emissions of each unit for the year 2011.
SLN Boya (dyeing) and two sewing subcontractors Regarding SLN Boya, only data from 2011 was
(Hazar Ltd. and Caglar). Data about SLN’s fuel, considered due to the fact that the dye house
energy and electricity consumption, as well as belonged to another company in 2010, before SLN
production and water consumption data was purchased the factory. In the rst nine months of
collected on a monthly basis from November 2011, the absolute carbon emissions of SLN Boya
2010 to October 2011. This data was analysed and amounted to 4.197 tonnes CO2e emissions. Due
compared with the last report (2009). For these to the nature of the business (high energy usage),
two periods, the absolute carbon footprint, the the dyeing unit generates more emissions and for
output related carbon footprint, energy costs, the this reasons the reduction should be evaluated as
absolute and output related water footprint, as unit based.
Sustainability Report / | 63

65. ENVIRONMENTAL PERFORMANCE
ENVIRONMENTAL PERFORMANCE
SLN Tekstil CO2 emission sources in 2011 Boya (dyeing unit) is excluded. Due to the par
The carbon footprint per piece of SLN Tekstil ve ticular processing, the printing unit has the lowest
onfeksiyon was reduced by 44% to a level of 87 emissions per piece.
grams CO2e emissions per piece in the past two The diagram below shows the water footprint
years. However, it has to be considered that the for the various units. SLN Efe has the lowest water
produced number of pieces increased by 50%. As consumption per piece, but on the same time has
such, productivity has increased remarkably. to pay the highest water costs per piece. Beside
The following diagram provides a comparison Hazar Ltd., all units show a slight increase in water
for each unit on the CO2e emissions per piece. SLN usage per piece compared to 2010.
kg/piece
0.22
0.20 fuel oil diesel
0.18
0.16 natural gas electricity
0.14
0.12
0.10
0.08
0.06
0.04
0.02
0.00
2010 2011 2010 2011 2010 2011 2010 2011
SLN Efe SLN Tekstil ve a lar (sewing / Hazar (sewing /
(printing) onfeksiyon subcontractor) subcontractor)
SLN Tekstil’s energy costs in 2010-2011 The diagram shows that all companies have a
The diagram below gives an overview of each unit slight increase in energy related costs from 2010 to
and its energy costs per piece for comparison pur 2011, even when emissions dropped. This has to do
poses. Again, SLN Boya (dyeing unit) is excluded. with the increasing level of energy prices in general.
0.08
0.07
fuel oil
0.06 diesel
0.05 natural gas
electricity
0.04
0.03
0.02
0.01
0.00
2010 2011 2010 2011 2010 2011 2010 2011
SLN Efe SLN Tekstil ve a lar (sewing / Hazar (sewing /
(printing) onfeksiyon subcontractor) subcontractor)
64 | Sustainability Report /

66. Water Footprint due to the inclusion of SLN Boya (see chart below).
Concerning environmental protection, water con Most of the water consumption arises from SLN
sumption is another ma or issue. For this reason, Boya, although, this result lies in the middle eld
the so called Water Footprint has been evaluated. compared to other dyeing factories. The output
In total all, the total consumption of water of all related water usage amounted to 3,17 Iitre per piece
units was 6.912 m3 in 2010. In the rst nine months in 2010 and increased in 2011 to approximately
of 2011 all units consumed 370.252 m3 water. The 92 lt per piece. The total water costs account for
signi cant di erence between 2010 and 2011 is 28.429 TL in 2010 and 393.660 TL in 2011.
Sln Boya
Hazar (subcontractor)
a lar (subcontractor
Taketim (stiching)
Efe Ege Printing
The diagram below shows the water footprint for
the various units. SLN Efe has the lowest water con
sumption per piece, but on the same time has to
pay the highest water costs per piece. Beside Hazar
Ltd., all units show a slight increase in water usage
per piece compared to 2010.
liter/piece
1.40
1.20
1.00
0,80
0,60
0,40
0,20
0.00
2010 2011 2010 2011 2010 2011 2010 2011
SLN Efe SLN Tekstil ve a lar (sewing / Hazar (sewing /
(printing) onfeksiyon subcontractor) subcontractor)
Sustainability Report / | 65

67. GRI
GRI
GRI Explanation Reference pages Reporting
indicators / Comments status
1. Strategy and Analysis
1.1 Statement from the most senior decision-maker of the organization. 4 Full
1,2 Description of key impacts, risks, and opportunities. 19-21 Full
Corporate Profile
2.1 Name of the organization. 3 Full
2.2 Primary brands, products, and/or services. 6-9; Full
2.3 Operational structure of the organization, including main divisions, 11-12 Full
operating companies, subsidiaries, and joint ventures.
2.4 Location of organization's headquarters. 3 Full
2.5 Number of countries where the organization operates, and names The organization operates Full
of countries with either major operations or that are specifically only in Turkey.
relevant to the sustainability issues covered in the report.
2.6 Nature of ownership and legal form. 11 – Owned by two family Full
members Selin and Salih Gur
and company is not a stock
corporation.
2.7 Markets served (including geographic breakdown, sectors served, 6-7 Full
and types of customers/beneficiaries).
2.8 Scale of the reporting organization. 18-9;27 – Company total Full
capitalization; 8.738.116,14
TL equity; 3.738.116,14 TL
Debt; 4.000.000 TL
2.9 Significant changes during the reporting period regarding size, 6-7 Full
structure, or ownership.
2.10 Awards received in the reporting period. 9 Full
Report Profile
3.1 Reporting period 3 Full
3.2 Date of most recent previous report. 3 Full
3.3 Reporting cycle 3 Full
3.4 Contact point for questions regarding the report or its contents. 3 Full
3.5 Process for defining report content. 3;19-21 Full
3.6 Boundary of the report 3 Full
3.7 Any specific limitations on the scope or boundary of the report. 3 Full
3.8 Basis for reporting on joint ventures and other subsidiaries. 3 Full
3.9 Data measurement techniques and the bases of calculations This report is compliant with Full
GRI B level. Data gathering
processes are conducted
within the database of
SLN and same calculation
methods are used throughout
the SLN software database.
3.10 Reasons for any re-statements of information provided in earlier SLN 2009 report was our Full
reports first report. Some projects
that are included in this
report were initiated in 2009
and continued during 2010-
2011.
3.11 Significant changes from previous reporting periods in the scope, 3 Full
boundary, or measurement methods applied in the report.
66 | Sustainability Report /

68. GRI Explanation Reference pages Reporting
indicators / Comments status
3.12 GRI indicators table. 66 Full
3.13 External audit of the report. SLN 2010-11 Sustainability Full
Report is prepared at GRI B
level. The report is self-
assessed according to GRI
disclosed methodology and
no external assurance is
included.
Governance, Commitments and Engagement Practices
4.1 Governance structure of the organization 11 Full
4.2 Chairman of the Board of Directors. 11 Full
4.3 Number of independent members of the board of directors. There is no independent Full
board member. All board
members are executives.
4.4 Participation of shareholders and employees to the management. Shareholders who have an Full
active role in the company
management form the Board
of Directors.
4.5 Linkage between compensation for members of top management The members of the board of Full
(including departure arrangements), and the organization's directors are remunerated as
performance (including social and environmental performance). company employees and the
management’s salary system
is set for management by the
executive committee.
4.6 Processes in place for the board of directors to ensure conflicts of Board members are Full
interest are avoided. executives of SLN Group
companies and this
committee makes all
managerial decisions.
4.7 Process for determining the qualifications and expertise of the Board member and SLN Full
members of the board of directors for guiding the organization's Tekstil’s CEO Selin Gur is the
strategy on economic, environmental, and social topics. head of the sustainability
team. CSR initiatives are
supervised by all of the board
members; however, Selin Gur
is the initiator of SLN’s CSR
projects.
4.8 Mission or codes of conduct relevant to CSR performance of the 14-15 Full
corporation and the status of their implementation.
4.9 Procedures of the highest governance body for overseeing the 11 Full
organization's CSR performance, including relevant risks and
opportunities, and adherence or compliance with internationally
agreed standards, codes of conduct, and principles.
4.10 Processes for evaluating the highest governance body's CSR 11-13
performance.
The highest 14-17 Full
governance
body's self-
inspection
regarding
its CSR
performance
4.11 The corporation’s risk management approach to CSR-related areas. 13 Full
Sustainability Report / | 67

69. GRI
GRI
GRI Explanation Reference pages Reporting
indicators / Comments status
4.12 Externally developed CSR charters, principles, or other initiatives to 12 Full
which the organization subscribes or endorses.
4.13 Corporation’s memberships in associations (such as industry 7 Full
associations) and/or national/international advocacy organizations.
4.14 List of stakeholder groups. 19 Full
4.15 Basis for identification and selection of stakeholders with whom to 19 Full
engage.
4.16 Approaches to stakeholder engagement, including frequency of 19-20 Full
engagement by type and by stakeholder group.
4.17 Key topics and concerns that have been raised through stakeholder 21 Full
engagement, and how the organization has responded to those key
topics and concerns, including through its reporting.
Performance Indicators
Economic Management Approach 23-24 Full
Performance
EC1 Direct economic value generated and distributed. 27 Full
EC3 Coverage of the organization's defined benefit plan obligations. 27 Full
EC4 Significant financial assistance received from government. 24 Full
EC5 Standard entry-level wages compared to local minimum wages. Wages are paid taking
into consideration living
conditions in all locations
and are above the minimum
wage.
EC6 Policy, practices, and proportion of spending on locally based 27 Full
suppliers at significant locations of operation.
EC7 Procedures for local hiring and proportion of senior management Dye house settlement areas
hired from the local community. of white-collar employees.
Workforce Management Approach 37 Full
Practices
LA1 (Main) Total workforce by employment type, employment contract, and 39 Full
region.
LA2 (Main) Total number and rate of employee turnover by age group, gender, 38 Full
and region.
LA5 (Main) Minimum notice period(s) regarding significant operational 38 Full
changes.
LA6 (Annex) Percentage of total workforce represented in formal joint 43 Full
management-worker health and safety committees that help
monitor and advise on occupational health and safety programs.
LA7 (Main) Rates of injury, occupational diseases, lost days, and absenteeism, 43 Full
and number of work-related fatalities by region.
LA8 (Main) Education, training, counselling, prevention, and risk-control 43-45 Full
programs in place to assist workforce members, their families, or
community members regarding serious diseases.
LA10 (Main) Average hours of training per year per employee by employee 33 Full
category.
LA11 (Annex) Programs for skills management and lifelong learning that support 44-45 Partial
the continued employability of employees.
LA13 (Main) Breakdown of employees per category according to gender, age 39 Full
group, minority group membership.
LA14 (Main) Ratio of basic salary of men to women by employee category. 40 Full
68 | Sustainability Report /

70. GRI Explanation Reference pages Reporting
indicators / Comments status
Human Rights Management Approach 14,15, 36, 37, 41 Full
HR1 (Main) Investment agreements that include human rights clauses. 14, 15, 41 Full
HR2 (Main) Percentage of significant suppliers that have undergone screening 41 Full
on human rights and actions taken.
HR3 (Annex) Total hours of employee training on policies and procedures 39 Full
concerning aspects of human rights that are relevant to operations.
HR4 (Main) Total number of incidents of discrimination and actions taken. There were no discrimination- Full
related incidents in the
reporting period.
HR5 (Main) Operations identified in which the right to exercise freedom of 14, 15, 40, 41 Full
association may be at significant risk, and actions taken to support
these rights.
HR6 (Main) Operations identified as having significant risk for incidents of child 14, 15, 37, 41, Full
labour, and measures taken to the elimination of child labour.
HR7 (Main) Operations identified as having significant risk for incidents of 14, 15, 40, 41 Full
forced or compulsory labour, and measures taken to eliminate
forced or compulsory labour.
Society Management Approach 37
SO2 Business Units analysed for corruption.
Business Units analysed for corruption.
Percentage No corruption incident ocurred in the reporting period. Full
and total
number of
business units
analysed for
risks related to
corruption.
Product Management Approach 32, 34-35
Responsibility
PR1 (Main) Life cycle stages in which health and safety impact of products and 32 Partial
services are assessed for improvement.
PR2 (Annex) Total number of incidents of non-compliance with regulations and No such incident occurred Full
voluntary codes concerning health and safety impact of products during the reporting period.
and services.
PR3 (Main) Products and services subject to product and service information 34, 35 Full
and labelling concerning their usage.
PR4 (Annex) Incidents of non-compliance with regulations concerning product No such incident occurred Full
and service information and labelling. during the reporting period.
PR5 (Annex) Practices related to customer satisfaction, including results of 32, 33 Full
surveys measuring customer satisfaction.
PR8 (Annex) Total number of substantiated complaints regarding breaches of No such incident occurred Full
customer privacy and losses of customer data. during the reporting period.
Environment Management Approach 48, 49 Full
Management
Approach
EN1 Materials used by weight or volume. 51 Full
EN3 Direct energy consumption by primary energy source. 58 Full
EN4 Indirect energy consumption by primary source. 58 Full
EN6 Initiatives to provide energy-efficient or renewable energy based 58-60 Full
products and services, and reductions in energy requirements as a
result of these initiatives.
Sustainability Report / | 69

71. GRI
GRI
GRI Explanation Reference pages Reporting
indicators / Comments status
EN8 Total water withdrawal by source. 56 Full
EN16 Total direct and indirect greenhouse gas emissions by weight. 62, 64 Full
EN18 Initiatives to reduce greenhouse gas emissions and reductions 60, 61; 63, 64 Full
achieved.
EN21 Total water discharge by quality and destination. 56 Full
EN22 Total weight of waste by type and disposal method. 52-55 Full
EN26 Initiatives to mitigate environmental impact of products and 62-65 Full
services, and extent of impact mitigation.
EN26 Initiatives to mitigate environmental impact of products and + Full
services, and extent of impact mitigation.
70 | Sustainability Report /

72. Businesses should support and respect the Page 14
protection of internationally proclaimed human rights
Businesses should make sure that they are not Page 14
complicit in human rights abuses.
Businesses should uphold the freedom of Page 14
association and the effective recognition of the right to
collective bargaining
the elimination of all forms of forced and Page 14
compulsory labour
the effective abolition of child labour Page 14
the elimination of discrimination in respect of Page 14
employment and occupation.
Businesses should support a precautionary Page 14
approach to environmental challenges
undertake initiatives to promote greater Page 14
environmental responsibility
encourage the development and diffusion of
environmentally friendly technologies.
Businesses should work against corruption in Page 14
all its forms, including extortion and bribery.
Sustainability Report / | 71

73. GRI
GRI
72 | Sustainability Report /

74. Sln Tekstil Ve Moda San. Tic. Ltd. ti.
Evren Mah. Halkal Cad.
Turgut Reis Sokak
No. 1 Ba c lar 34212
stanbul TUR EY
Tel : (90) 212 489 35 40 ( pbx )
Fax: (90) 212 489 35 49
www.slnmoda.com.tr
This report is printed on 100% recycled paper

75. This report was prepared
with the support of
Systain Consulting
www.systain.com
This report was designed by