Communication on Progress

  • 2017/11/06
Time period
  • March 2016  –  September 2017
  • 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.

  • 03/11/2017

    To our stakeholders:

    I am pleased to confirm that Borsa İstanbul reaffirms its support of the Ten Principles of the United Nations Global Compact in the areas of Human Rights, Labour, Environment and Anti-Corruption.

    In this annual Communication on Progress, we describe our actions to continually improve the integration of the Global Compact and its principles into our business strategy, culture and daily operations. We also commit to sharing this information with our stakeholders using our primary channels of communication.

    Sincerely yours,

    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 and ethics code of conduct 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.

    Ethics code of conduct is an inseparable part of the labour contract. The ethics code of conduct is based on social work’s core values of service, honesty, fairness, non-discrimination and alike.

    Kimberley Process Certification Scheme

    Diamonds which are traded in the Borsa İstanbul Precious Metals & Diamond Markets are required to be certified according to the principles of Kimberley Process Certification Scheme. Diamonds without certificates are not allowed to be traded on Borsa İstanbul markets. With this application, Borsa İstanbul aims to prevent conflict diamonds from entering the mainstream rough diamond market and to ensure that diamond purchases on Borsa İstanbul markets are not financing violent rebel movements and their allies seeking to undermine legitimate governments.

    Organization for Economic Co-operation and Development (OECD) Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas

    The Organization for Economic Co-operation and Development (OECD) Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas offers detailed recommendations for companies in order to help them respect human rights and prevent from contributing to conflict through their mineral purchasing practices.

    Borsa İstanbul, in cooperation with OECD, carries out various activities, including the organization of informative meetings and trainings in order to ensure that the gold transactions performed in the Precious Metals Market are in line with the internationally accepted standards and Turkish companies import gold responsibly.

    Furthermore, as a result of the agreement signed between Borsa İstanbul and the OECD, Borsa İstanbul had the OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas translated into Turkish and distributed the Guidance to its members.

    Borsa İstanbul prepared Responsible Gold Supply Chain Guide on the basis of the above mentioned Guidance. The Guide aims to ensure that the Precious Metals Market members fight against systematic and widespread human rights violations, not contribute to financial resources supporting regional conflicts and terror, and comply with the high standards put in place against money laundering.

    Within this framework, Borsa İstanbul highly recommends its Precious Metals Market members to create their own policies on the basis of Borsa İstanbul Responsible Gold Supply Chain Guide and supply gold in accordance with the policies envisaged therein. In order to encourage responsible gold supply policies, Borsa İstanbul members that apply such policies will be announced on Borsa İstanbul website.

    Indirect contributions to ensure a healthy corporate life:

    BIST Corporate Governance Index

    Borsa İstanbul encourages the companies to improve their corporate governance performances. For this purpose, 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 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.

    BIST Sustainability Index

    Going one step ahead from the Corporate Governance Index, Borsa İstanbul started to calculate the BIST Sustainability Index as of November, 4th in 2014. BIST Sustainability Index covers a wider range of issues than Corporate Governance Index does. Using the global methodology of EIRIS, companies are assessed according to various aspects ranging from human rights and environmental effects to encountering corruption. Those that meet the index inclusion criteria determined by Borsa İstanbul and EIRIS are included in the index.

    Handbook for Sustainability Guidance

    Borsa İstanbul published the “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.

    Sustainability Committee

    Borsa İstanbul Sustainability Committee was established in 2015 to implement sustainability in an integrated and effective manner, to monitor sustainability strategy and performance and to conduct works and studies to integrate sustainability into decision making mechanisms and business models in Borsa İstanbul. The Committee is chaired by an Executive Vice President.

    Contributions to Education

    Borsa İstanbul has been transferring funds to the Ministry of National Education for the construction of different types of schools throughout Turkey. These investments made in provinces and districts that lack sufficient opportunities will help ensure that education levels and quality will be increased throughout Turkey. Within the framework of the protocol conducted with the Ministry of National Education in 1997, the “National Education Physical Contribution Project” (EFIKAP), which was initially put into practice by the “ISE Education Fund” with a budget of 32 Million TL for constructing 46 schools, as of today has become an important project with a very high value-added.

    Holistic Sustainability Approach

    Our sustainability approach is based on encouraging our market participants and stakeholders to integrate a sustainability perspective into their work, bringing them together with experts in the field, developing market-based solutions, and, of course, serving as an example with the ownership and applications we demonstrate in our own organization. Borsa İstanbul believes that innovation is one of the critical tools for achieving sustainability.

    Ring the Bell for Gender Equality

    In 2016, Borsa İstanbul supported gong ceremonies in cooperation with United Nations Global Compact, UN Women, World Federation of Exchanges (WFE), Women in ETFs, Sustainable Stock Exchanges Initiative (SSE) and the World Bank Group, and the IFC (International Finance Corporation) by inviting the business community to promote gender equality and support the empowerment of women in economic life.

    Integrated Reporting Studies

    Integrated reports contribute to a better understanding of the organic links between “sustainability” and “work” practices. Borsa İstanbul works in cooperation with International Integrated Reporting Council (IIRC) and support its activities. In addition, the Turkish Integrated Reporting Network (ERTA), of which Borsa İstanbul is a founding member, accelerated its establishment activities in 2016, and the founding principles and secretariat protocol were prepared with contributions of all founding members. ERTA’s establishment was announced with a gong ceremony held in our Exchange in 2017.

    “Sustainability Strategy Roadmap” outlines the actions to be undertaken by Borsa İstanbul until 2020 in eight priority fields (Strategy, Corporate Governance, Stakeholder Relations, Effective and Transparent Markets, Business Continuity and Technological Risk Management, Innovation and Environment). This plan was prepared with the participation of Borsa İstanbul units and approved by the Sustainability Committee and received approval from the Board in July 2016. Integrated Reporting will increase Borsa İstanbul’s competitive power in international markets by setting the goal of “2020 Sustainability Leadership” for Borsa İstanbul to lead the transformation of Turkish financial markets by strengthening its future. The 2015 Sustainability Report in accordance with GRI G4 standard, was published in the first half of 2016. It is expected that this report will set an example for listed companies as well.

  • 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 13 as of August 31, 2017.

    BIST Corporate Governance Index

    Borsa İstanbul Corporate Governance Index comprises 50 companies as of August 31, 2017.

    BIST Sustainability Index

    Companies that aim to be included in the index give emphasis on their sustainability performances. Compared to the first index term companies perform better in many aspects that are assessed by EIRIS in the second term of the BIST Sustainability index. This means that Borsa İstanbul contributed to increase in the number of companies whose emissions has been reduced, which achieved to encounter bribery and corruption better and which provides better conditions to their employees such that they have more healthy and safe conditions, they work in an environment which is less corrupt and more developed in terms of human rights.

    Borsa İstanbul Sustainability Index comprises 42 companies as of August 31, 2017.

    Contributions to Education:

    With the “Contribution to National Education Project”, Borsa İstanbul has allocated funds of approximately $US 1.5 billion to national education since the project’s inception in 1997. Through different phases, 432 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.

  • Our rules and regulations cover policies concerning our employees’ rights, responsibilities and compensations. In order to ensure comparable pay for comparable work, the wage and compensation system are defined in Human Resources (HR) regulations. On the other hand, the health expenses of all our employees and their families are covered by Borsa İstanbul.

    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 HR 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 engages in activities to enhance personnel motivation and loyalty.

  • 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 “TezKoop 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. The Fourth Collective Agreement was signed in December 2013, covering the years 2014-2016. A new labor union, Bank, Finance and Insurance Companies’ Workers Union (BASİSEN), which is active in finance and banking sectors, was authorized to represent Borsa İstanbul employees. The last collective agreement was signed in 2017, covering the years 2017-2018. Borsa İstanbul recruitment procedures are regulated by internal regulation in accordance with the principle of offering equal opportunities to persons of equal qualifications. Recruitment of new graduates is realized through written exams and interviews to ensure objectivity.

    All rights awarded to the employees are clearly defined in the internal regulations. The rights envisaged by the legislation are accrued on each employee without any discrimination.

    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.

    Borsa İstanbul offers its employees a healthy and safe working environment based on national and international ever-developing legal regulations on Safety & Health at work. A Labour Health and Security Board consisting of the representatives of the employer, employees, and the security unit, as well as a labour security specialist and a doctor are in place. The Labour Health and Security Board convenes quarterly and after making the necessary evaluations, ensures that necessary steps are taken.

    Within the framework of compliance with regulation and the importance given to safety of employees, information security and basic job health and safety training have been organized for all employees. Training on workers’ health and security in offices was provided to Borsa İstanbul employees in December 2016. A workplace safety specialist, a nurse and a doctor are serving the personnel.

    Borsa İstanbul organizes social activities for employees regularly such as social meetings, dinners, picnics or similar activities to motivate and strengthen employee loyalty. Borsa İstanbul is also supporting both morally and financially its employees giving them the opportunity to fulfill their hobbies including music workshops, corporate games and sports tournaments every year. After Takas Istanbul and Merkezi Kayıt İstanbul started operating on our campus, a series of motivational events were organized in 2016 with the aim of bringing group employees together, strengthening cohesion and team spirit.

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

  • The total number of members of a new labor union, Bank, Finance and Insurance Companies’ Workers Union (BASİSEN) is 374 at the end of August, 2017 A union representative also takes part in Borsa İstanbul Workplace Health and Safety Board

    The total number of members of “The Association of Borsa İstanbul Employees” is 371 at the end of August, 2017 which were 262 in the last period.

    The number of female personnel is 136, which represents 24.9% 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.

  • Borsa İstanbul has developed a number of applications within green IT concept to increase overall company productivity and reduce paper usage.

    Borsa İstanbul has automated almost all internal business processes by developing Business Process Management (BPM) applications which can be summarized as follows;

    • Human Resources Related Applications (Performance Management, Education, Overtime Process, Payroll, Health Care Costs etc.)
    • Utility Request & Project Management Process
    • Internal Correspondence
    • Cost & Budget Automation

    Besides these applications, all commercial and legal correspondence are being moved to electronic systems since October, 2014.

    Borsa İstanbul developed web based applications ( for communication with member institutions and data vendors.


    Borsa İstanbul building was constructed in line with new technologies considering environmental protection. Additionally, environment friendly technologies like recycling & energy saving initiatives started to be used in the current infrastructure construction projects.

    Borsa İstanbul launched Primary Data Center (PDC) which is highly secure and can be monitored from a single point, and employs technical hardware of international standards and full redundancy. Compared to its counterparts, PDC employs high energy efficiency.

    Borsa İstanbul continuously participates in programs aiming at reducing carbon footprint. Borsa İstanbul provides shuttle services to its employees to help decrease carbon footprint emissions.


    To protect the environment, waste papers, batteries and recyclables are collected and sent to recycling facilities periodically.

    To reduce energy consumption, efficient air conditioning systems and energy saving light bulbs are being used within Borsa İstanbul premises.

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

  • As a result of the automated and web-based Business Processes, Borsa İstanbul saved more than 4 million A4 size paper on an annual basis which means saving more than 400 pine trees roughly.

    Borsa İstanbul prevented 22.3 tons of carbon emission by implementing “ink toner” saver program in the period March 2016-September 2017. Borsa Istanbul saved 8 trees by printing on both sides of papers in this period.

    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 reductions in electricity consumption.

  • 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 has zero tolerance for violation of laws/regulations and dishonesty or unethical behavior. Any illegal activity 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’s rules and regulations such as Code of Ethics are intended to prevent unethical or illegal business practices. Conflict of interest matters are also regulated.

    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 or entity doing business with Borsa İstanbul (institutions, public officials, shareholders etc.,)
    Enforcement and Surveillance Board of Borsa İstanbul monitors all trading activities and unusual price/volume changes to detect illegal practices such as market manipulation, insider trading and any other market abuse actions.

    There is also Legal Affairs and Compliance Department of Borsa İstanbul in charge of regulatory compliance and reporting findings of anti-money laundering activities to the related regulatory and enforcement body of the government.

    Borsa İstanbul investigates activities of any kind of data distribution, index calculation and financial product creation which are based on Borsa İstanbul data but not carrying Borsa İstanbul license in order to detect and prevent unauthorized information sharing and illegal revenue streams.

    Borsa İstanbul personnel are prohibited from trading in Borsa Istanbul markets to prevent corruption and conflict of interest.

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

  • The financial statements and reports of Borsa İstanbul are subject to independent audit and disclosed to public according to the principles and procedures determined by the Capital Markets Board of Turkey.

    Suspicious transactions and market abuse are reported to the Turkish Capital Markets Board by Borsa İstanbul.

    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 in order to improve ethical and professional standards and implementations of internal auditing and fighting against fraud.

    In May 2016, “Corporate Awareness Awards” was organized by Internal Audit Institute of Turkey to raise awareness in internal auditing. Borsa Istanbul was awarded in this event for its high level of corporate awareness.

    As a result of the Quality Assurance Review applied by KPMG to audit the compliance of the Audit and Surveillance Board’s internal audit activities with international standards and the best practices, it was concluded that: the Board’s activities and structure are in line with International Internal Audit Standards and Good Practices; the Board carries out its duties in an independent, professional and objective manner; the Board’s activities provide added value for exchange business processes and the Board plays a significant role in enhancing the control weaknesses in the processes. KPMG rated Borsa İstanbul’s Audit and Surveillance Board’s activities as “Generally Compliant”, which is the highest compliance level.

    Borsa İstanbul is a member of International Surveillance Group since 2012.

    Currently, there are 11 CFE (Certified Fraud Examiners), 7 CIA (Certified Internal Auditor), 4 CISA (Certified Information Systems Auditor), 2 CFA (Chartered Financial Analyst), 1 CSX (Cybersecurity Nexus), 5 CPA (Certified Public Accountant) certified auditors employed in Audit and Surveillance Board of Borsa İstanbul.