Sln teks.sust.2011

GRI REPORT
2010-2011

Sustainability
Report

Sustainable Threads

2010-2011
Sustainability Report

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 /

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
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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

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


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


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


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.


ABOUT US
ABOUT US

SLN WITH NUMBERS

Employees Capacity
Piece Garment,

tons yed abric

WORK FLOW

Raw fabric Quality control

Dying Cutting


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


OUR APPROACH TO SUSTAINABILITY

MISSION

VALUES
VISION

SUPPLY
CHAIN
SUSTAINABILITY
RISK
MANAGEMENT


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



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


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



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.
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 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 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 Employment procedure.

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.


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.



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 %.


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.


STAKEHOLDER ENGAGEMENT

"We accept that Stakeholder engagement is as crucial to an organization's
sustainability and success."
– Selin Gür


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



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


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.


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.


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.



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


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



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.
–


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%



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.
–


Sln teks.sust.2011

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