To our stakeholders:

I am pleased to confirm that Netaş 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,

C. Müjdat Altay
Netaş CEO

Since 1967, we have been delivering a new generation of technological infrastructure from rural to city, working to offer equal opportunities in digitalization and contribute to the sustainable development of our country.

During the pandemic period to support the employees;
• For our employees’ safe and healthy, we provided working flexibility
• In order to support the mental health of our employees; we held online activities on different topics such as meditation, mindfulness and etc.
• We held online townhall and management meetings under the direction of our CEO to equalize the level of knowledge within the company.
Inclusion activities for the disadvantageous parties
• We have been provided online STEM education over 120 students all over Turkey
• We donated computers to the students.
• We established innovation and technology classes in elementary schools.
• We provide 40-week training program for our employees' children, including coding, artificial intelligence, and mathematics training.
• With the cooperation of TEV, we have been providing mentoring support to female university students for 2 years.
• We prepared Netaş Diversity Principles and started the signature process for all our employees. Principle document was included into the welcome kit of our new employees
Creating and supporting Ecosystem;
• We support young STEM teams on the international platforms, such as First Lego League, World Robotics Competition
• We supported start-ups by R&D and knowledge sharing
Supporting rural development
• We have realized a significant social responsibility project on November 2015 involving the plantation of initially 16,000 saplings in Gazikoy, Tekirdag on the northern coast of the Sea of Marmara. At the ‘Netas Healing Forest", we plant 23 different species of trees and medicinal aromatic plants in a 10-hectare field not only to preserve & enhance ecological diversity but also build a source of income for the villagers in the area. Locust, walnut, chestnut, almond, rosemary, lavender, sage and many other plants will transform the land into sources of oxygen & nests for animals. This project underpins our company’s commitment for a green and healthier, cleaner world.
• Pandemic period, we had realized a new project with by e-cording, one of the award-winning start-ups. As part of the project, the seed balls produced by the women villagers were sprinkled into the forest with a drone. Thus, the village people and women will earn income from the seed balls they produce, and the export income of the village will increase with the increased amount of sage.

• 5 townhall meetings in 10 months
• 8 online events on different topics in 10 months
• 50 computer donation
• 122 online stem education
• Mentoring support to 70 university students.

* We comply with minimum wage standards
* In our recruitment processes, we have processes such as reference control, personal inventory and multi-stage interviews. Performance is tried to be created in line with SMART goals and goes through multiple calibrations and peer reviews in finalization.

Based on the employee number, sanitary conditions were provided and regulated by national law. Climatization, heating, cooling, and workplaces were designed depending on national law and OHSAS regulations.

* Our company has established an environmental, health and safety policy and has IS0 14001 verified by TUV Nord.
* Based on environmental policy; prevention of pollution, control of the amount of waste, conservation of sources and monitoring of energy consumption are carried out by Facility& Technical Management and EHS department. Our targets have been set and monitored yearly. Besides, emissions that are stemmed from our operations has been calculated and disclosed into Climate Change report on CDP.net.
* All environmental activities are submitted on Environmental Health Safety report and published on our website each year.
* In our facilities or our operations occurring in the sites, the emergency procedures have been arranged and regular drills are conducting in order to be ready for every unexpected cases.

Waste minimization: 11 tons.
Occupational accident lost day incidence and number of lost days
* Lost Day Number Intensity: 0
* Lost Day Case Frequency: 0

Netas Telekomunikasyon A.S and its subsidiaries has a Compliance Department which includes employees who has anti-bribery, corruption and ethics backgrounds and responsible with all subsidiaries. All employees are aware that they can easily contact with any member of the team whenever they need.

Netas Telekomunikasyon A.S and its subsidiaries
* has Anti – Bribery and Corruption Policy and Anti – Bribery and Corruption Procedure which includes management commitment, gift and entertainment, relationships with public agencies, facilitating payments, donations, sponsorships etc. Those are updated according to the regulatory changes / company needs. Those are in progress of updating in 2020 Q4 as well.
* recently published a Donations Procedure which is inseparable part of the Anti-Bribery Policy.
* trains its all employees regarding anti bribery and corruption in annually base. The trainings are updated according to company needs / regulatory changes.
* has a Code of Conduct and Supplier Code of Conduct which includes anti-bribery and corruption commitment / clause. Code of Conduct is in progress of updating in 2020 Q4 as well. The goal for 2021 is to provide ethics training to all employees and as well as business partners.
* ZTE, the controlling shareholder of Netas, has a whistleblowing hotline which is open to all its subsidiaries. Nevertheless, Netas recently initiated to establish a local whistleblowing line as well.
* employees have compliance targets in their KPIs.

All employees have compliance targets in their KPIs.
If necessary, audits on Anti-Bribery and Corruption may be conducted through Netaş Compliance Team or it’s main shareholder ZTE or an independent party.