11/07/2022

To our stakeholders:

I am pleased to confirm that KÜÇÜKÇALIK Tekstil San. ve Tic. A.Ş. 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 share this information with our stakeholders using our primary channels of communication.

Sincerely yours,

Yaşar KÜÇÜKÇALIK
Chairman of the Board

• The health and safety of the employees are ensured by the enclosed Internal Regulation and Occupational Safety Management Manual.
• Problems identified after the occupational health and safety inspections are recorded and followed up until they are resolved.
• We have an Anti-Harassment and Abuse Policy to protect employees from physical, verbal, sexual or psychological harassment, abuse or threats in the workplace. In Sustainability & Social Compliance Trainings, our employees are told that in case of such a situation, our wish and complaint system can be used and they can also report it through an open door policy. Such crimes cannot be tolerated in any way.
• Chemicals used during production are covered by REACH, GATEWAY and ZDHC. All risks in production areas are evaluated with risk analyzes and necessary precautions are implemented in the field.

* Periodic meetings are held with worker representatives. At these meetings, issues related to suggestions and complaints are discussed. Suggestions are being evaluated.
* In the orientation trainings given to all employees at the beginning of the job, information is given about human rights and working conditions.

* We do not have any disputes about human rights violations so far.
* There are no non-compliances related to the subject in the Social Compliance Audits, which are periodically requested by our customers and carried out by 3rd party auditors.

• Within the scope of our attached Social Responsibility Policy, forced or binding employment of employees is prevented.
• In Küçükçalık Tekstil, there is no employee working with a salary below the officially determined minimum wage.
• Candidates applying for a job are evaluated according to the requirements of open positions with semi-structured interview questions. As a result of the evaluation, a "technical interview" is made with the appropriate candidate and the details of the job are explained by the person responsible for the job. The suitability of the candidate for the job is clarified with doctor's checks. The candidate is employed upon the approval of the responsible person at each stage.

• For the health needs of the employees, full-time doctors and nurses and experts on occupational safety have been appointed.
• Personal protective equipment was distributed to all employees in line with their occupational safety needs.
• In order to carry out health checks of the employees, service is also received periodically from full-fledged health institutions.

* The demographic indicators of the company are followed graphically.
* We work in accordance with SEDEX, HIGG INDEX, IWAY 6.0 audit standards, apart from customers' special audits.

• With our Environmental Permit presented in the appendix, it is documented that our production processes are controlled and our environmental protection systems are regularly maintained (air pollution control, waste & water treatment systems, etc.) in order to prevent damage to the environment.
• Our air emissions are measured and monitored by authorized laboratories every two years.
• We have hazardous and non-hazardous temporary waste storage areas. Wastes are sent to recycling or disposal facilities according to their content.
• Our drinking water is analyzed on a regular basis according to drinking & utility water standards.
• Wastewater is transferred to the central treatment plant of the Organized Industrial Zone to be treated.
• Our attached Emergency Procedures, prepared to prevent accidents affecting environment & human health, are located on all panels in the production areas. Details are explained to all employees in periodic occupational safety trainings.
• In order to minimize the use of hazardous materials and ensure that they are stored safely, we have our Hazardous Substance Management Procedure and Chemical Materials Management Procedure attached. We have ATEX certified Exproof cabinets to store our flammable chemicals. Our chemical warehouses comply with all safety standards and are equipped with sprinkler systems.

* In orientation trainings, information is given in order to raise environmental awareness.

* Chemicals used during production are covered by OEKOTEX, REACH, GATEWAY and ZDHC. All risks in production areas are evaluated with risk analyzes and necessary precautions are implemented in the field.
* GRS, OCS, GOATS, ISO50001, FEM, Green to Wear, IGS audits are also carried out periodically.

• We have an attached Anti-Corruption and Bribery Policy in order to eliminate the risk of corruption while doing business.
• Compliance of contracts with business partners with anti-corruption & ethical behavior is ensured by our attached Business Ethics Policy.