Communication on Progress

  • 25-Sep-2014
Time period
  • September 2013  –  September 2014
  • Stand alone document – Basic COP Template
Differentiation Level
  • This COP qualifies for the Global Compact Active level
  • Includes a CEO statement of continued support for the UN Global Compact and its ten principles
  • Description of actions or relevant policies related to Human Rights
  • Description of actions or relevant policies related to Labour
  • Description of actions or relevant policies related to Environment
  • Description of actions or relevant policies related to Anti-Corruption
  • Includes a measurement of outcomes
  • Statement of continued support by the Chief Executive Officer
  • Statement of the company's chief executive (CEO or equivalent) expressing continued support for the Global Compact and renewing the company's ongoing commitment to the initiative and its principles.

  • Borsa İstanbul (BİST) puts compliance with the principles of UN Global Compact at the core of sustainable business and growth. Pioneering the capital market improvement in Turkey, BİST not only integrates the principles into its own code of business practices but also gives the lead for listed companies to affirm the responsible conduct of business.

    Borsa İstanbul, a founder member of the Sustainable Stock Exchanges Initiative, acknowledges its role in the widespread application of ESG issues. BİST accomplishes its mission through diversified means which include offering focused products and services and engaging in initiatives aimed at enhancing awareness and knowledge.

    Holding a seat in the Board of UN Global Compact Turkey Local Network, Borsa İstanbul also contributes to the activities of the Network. Being committed to the integration of ESG issues and enlightened business practices, it is definite that Borsa istanbul will continue supporting the principles of UN Global Compact.

    Yours sincerely,
    İbrahim M. TURHAN, Ph.D.
    Chairman and CEO
    Borsa İstanbul

Human Rights
  • Assessment, policy and goals
  • Description of the relevance of human rights for the company (i.e. human rights risk-assessment). Description of policies, public commitments and company goals on Human Rights.

  • Borsa İstanbul is committed to protecting human rights and freedom and believes that everyone should be given the liberty and security, the right to express himself/herself freely, the right to have respect in private life. In this context, Borsa İstanbul strives to ensure and sustain a reliable, fair and healthy working environment.

  • Implementation
  • Description of concrete actions to implement Human Rights policies, address Human Rights risks and respond to Human Rights violations.

  • The recruitment and personnel policy of Borsa İstanbul is in line with the internationally proclaimed human rights principles. Borsa İstanbul policies prohibit discrimination based on sex, race, religion, and color, political or other opinion and social origin. Borsa İstanbul also has a certain recruitment reserve for disabled people.

    Borsa İstanbul staff must sign an ethics code of conduct, which is in line with the human rights principles. The ethics code of conduct is based on social work’s core values of service, honesty, fairness, non-discrimination and alike.

    Indirect contributions to ensure a healthy corporate life:

    Borsa İstanbul has been computing and disseminating the Corporate Governance Index since 2007. BIST Corporate Governance Index aims to measure the price and return performances of companies traded on Borsa İstanbul Markets with a corporate governance rating of minimum 7 over 10 as a whole and minimum of 6.5 for each main section. The corporate governance rating is determined by the rating institutions incorporated by the Capital Markets Board (CMB) in its list of rating agencies as a result of their assessment of the company's compliance with the corporate governance principles set by the CMB. Rating grades ranging between 1 and 10 are assigned on the compliance with corporate governance principles as a whole and individually with respect to the topics such as; shareholders, public disclosure and transparency, stakeholders, board of directors. Borsa İstanbul Corporate Governance Index comprises 48 companies as of August 31, 2014.

    Borsa İstanbul acknowledges its role to create awareness in investors and listed companies on environment, social responsibility, and corporate governance issues and to provide them with the expertise and advice. Borsa İstanbul started to publish corporate social responsiblity and sustainability-related activities of its members and listed companies on Borsa İstanbul website.

    Contributions to education:

    Borsa İstanbul’s “Contribution to National Education Project”, which started back in 1997, is in progress. Borsa İstanbul has been transferring funds to the Ministry of National Education for the construction of different types of schools throughout Turkey. In this regard, a protocol was signed between the Turkish Ministry of National Education and Borsa İstanbul in December 2011.

  • Measurement of outcomes
  • Description of how the company monitors and evaluates performance.

  • Human rights:

    • Borsa İstanbul did not receive any negative feedback regarding human rights violation during the period.
    • Number of disabled staff working at Borsa İstanbul is 14 as of August 31, 2014.

    Contributions to education:

    With the “Contribution to National Education Project”, Borsa İstanbul has allocated funds of approximately $US 1 billion to national education since the project’s inception in 1997.
    During the whole phases of the Project, 415 fully functional and equipped educational institutions have been constructed including, but not limited to, university faculty buildings, administrative buildings, social facility centers, public training centers, primary schools, high schools, apprenticeship schools, boarding schools, vocational high schools, dormitories, mass-housing, sports and cultural centers.

  • Assessment, policy and goals
  • Description of the relevance of labour rights for the company (i.e. labour rights-related risks and opportunities). Description of written policies, public commitments and company goals on labour rights.

  • Borsa İstanbul sustains its professional relationship with employees’ union. Borsa İstanbul is also committed to offering democratic, equal and respectful working environment to its employees and members in addition to its non-discriminating recruitment and service policies.

    Borsa İstanbul personnel regulation provides the staff with the freedom of association and collective bargaining, as well as the right to become members of associations, foundations, etc. for social activities.

    Borsa İstanbul offers its employees a healthy and safe working environment. In this regard, a workplace safety specialist and a doctor are currently serving the personnel.

  • Implementation
  • Description of concrete actions taken by the company to implement labour policies, address labour risks and respond to labour violations.

  • The first collective agreement between Borsa İstanbul and “Tez-Koop. İş – Commercial and Official Employees Union” was signed in 2007. In 2009, the second collective agreement was signed covering the years 2009-2010. In 2011, the third collective agreement was signed covering the years 2011-2013. Finally, the last collective agreement was signed in December 2013, covering the years 2014-2016.

    Borsa İstanbul staff can also become members of “The Association of Borsa İstanbul Employees”, which aims at improving the communication and cooperation among the members, protecting the rights of its members, contributing to the social, cultural and sportive aspects of its members’ lives and providing its members with scientific research, training and publications.

  • Measurement of outcomes
  • Description of how the company monitors and evaluates performance.

  • The total number of members of “Tez-Koop. İş- Commercial and Official Employees Union” is 468 whereas the figure was 532 in year 2013.

    The ratio of union members to the total number of employees was 81.4% in 2013 and 79.6% as of August 31, 2014.

    The total number of members of “The Association of Borsa İstanbul Employees” is 304 which was 371 in the last period.

    A “Tez – Koop. İs-Commercial and Official Employees Union” representative also takes part in Borsa İstanbul Workplace Health and Safety Board.

    The number of female personnel is 152, which represents 25.6% of the total number of employees. It goes without saying, there is no wage discrimination due to genders.

    The minimum age for employment is 18.

  • Assessment, policy and goals
  • Description of the relevance of environmental protection for the company (i.e. environmental risks and opportunities). Description of policies, public commitments and company goals on environmental protection.

  • Borsa İstanbul is committed to protecting the environment and resource saving and actively supports and participates in ecological protection, promotes environmental responsibility in most of its infrastructural and administrative systems.

  • Implementation
  • Description of concrete actions to implement environmental policies, address environmental risks and respond to environmental incidents.

  • Energy:

    The Borsa İstanbul building was constructed in line with the new technologies considering environmental protection. Additionally, environmental friendly technologies like recycling & energy saving initiatives started to be used in the current infrastructure construction projects.
    Natural gas is used for heating.
    Borsa İstanbul continuously participates in programs aiming at reducing carbon footprint.


    To protect the environment, waste papers, batteries and recyclables are collected and sent to recycling facilities periodically.
    To reduce energy consumption and save energy, efficient air conditioning systems and energy saving light bulbs are being used within Borsa İstanbul premises.

    BIST Sustainability Index:

    Borsa İstanbul has signed a cooperation agreement with Ethical Investment Research Services Limited (EIRIS) in 2013 to create BIST Sustainability Index which is based on the performances of the companies on environmental, social and governance issues. In accordance with this agreement, EIRIS will assess the Borsa İstanbul listed companies based on the international sustainability criteria and the assessments will be based upon only publicly available information.

    BIST Sustainability Index is expected to be a platform for institutional investors to demonstrate their commitment to companies managing environmental, social and governance (ESG) issues with high performance. With the Index, Borsa İstanbul provides companies an instrument for evaluating their performance and consequently adopting new targets or furthering their performance while allowing them to develop their risk management abilities for corporate transparency, accountability and sustainability.

    Handbook for Sustainability Guidance:

    Borsa İstanbul is on the verge of finalizing “Handbook for Sustainability Guidance” which is designed to serve as a guide for the companies whose capital markets instruments are listed or have potential to be listed in Borsa İstanbul.

  • Measurement of outcomes
  • Description of how the company monitors and evaluates environmental performance.

  • Energy:

    Borsa İstanbul employees are diligent to integrate environmental management and control in their daily life and administrative activities.

    Previous enhancements in the building automation system had enabled Borsa İstanbul to achieve minor reductions in electricity consumption. Further efficiency is targeted for energy savings; hence a comprehensive infrastructure renovation is still under way to achieve this end.

    Borsa İstanbul Sustainability Index:

    Borsa İstanbul and EIRIS are working together to determine the constituents of BIST Sustainability Index since October 2013 and Borsa İstanbul plans to launch the index in the last quarter of 2014.

  • Assessment, policy and goals
  • Description of the relevance of anti-corruption for the company (i.e. anti-corruption risk-assessment). Description of policies, public commitments and company goals on anti-corruption.

  • Borsa İstanbul does not allow violation of laws/regulations and dishonesty or unethical behavior. Any illegal act such as bribery, abuses by employees or executives are strictly prohibited.
    Borsa İstanbul takes all necessary precautions to prevent such abuses.

  • Implementation
  • Description of concrete actions to implement anti-corruption policies, address anti-corruption risks and respond to incidents.

  • Borsa İstanbul rules and regulations require that the employees are not allowed to offer, give or take any presents in any form in cash or in kind, directly or indirectly from any person, institution, public officials, etc.

    Enforcement and Surveillance Board of the Borsa İstanbul monitors the trading activities for any unusual price/volume changes in order to detect illegal practices such as manipulation, insider trading and any other market abuses.

  • Measurement of outcomes
  • Description of how the company monitors and evaluates anti-corruption performance.

  • Borsa İstanbul supports the activities of the Institute of Internal Auditors (IIA), Institute of Internal Auditors- Turkey (TİDE), European Confederation of Institutes of Internal Auditing (ECIIA) and ACFE Local Chapter.

    Borsa İstanbul also became a member of International Surveillance Group in late 2012.

    Currently, Borsa İstanbul employs 15 CFE (Certified Fraud Examiners), 9 CIA (Certified Internal Auditor) and 4 CISA (Certified Information Systems Auditor) certified personnel.