Messages From Management
As the pioneering player of the Turkish energy distribution and sales market, we aim to maximize the benefit of all our stakeholders. Therefore, we see sustainability concept not only a set of actions but also a solid part of our DNA and one of the main drivers of our business strategy. Within this context, we are very pleased to present you 2019 Integrated Sustainability Report of Enerjisa Enerji.
Our good financial performance is crowned by our approach to sustainability which is the central component of our brand story and road map. Following the successful public offering in 2018, we have focused on corporate sustainability to develop a strategic and holistic approach regarding economic, environmental and social factors to create long-term value. We emphasize sustainability as an important aspect of our equity story and a critical tool for an effective strategic management. While integrating sustainability in our processes, we keep complying with global environment and social norms, as well as investing for social awareness.
We carry the responsibility of delivering a critical service for the society and we get prepared for the new world of energy. With our vision to be become the leading energy company with our Environmental, Social and Governance (ESG) performance, we adopted our sustainability strategy to better manage these metrics with an integrated approach.
In all our operations and activities, we aim to develop sectorleading practices and perform our operations with an exemplary attitude; take responsibility to ensure all segments of society have the opportunity of equal welfare and healthy living standards given that electricity is a basic need, just like air and water; closely monitor the changes and trends occurring in the highly adaptive energy world and develop our diverse, young and equipped human resources, as well as our strong and reliable brand, to successfully keep up with the changes in our sector. With our stakeholders, we will operate as an environmentally responsible energy company that digitalizes the energy, democratizes energy production and accomplishes groundbreaking achievements in providing access to energy in the digital era.
In 2019, we have been included in the BIST Sustainability Index. To actively support our strategy, we became a signatory of both the UN Global Compact and Women Empowerment Principles (WEPs). We also received a Corporate Governance rating for the first time. With a score of 9.45 out of 10, we became one of the companies with the highest corporate governance rating and were included in the BIST Corporate Governance Index.
We will continue to take decisive steps to become the energy company of the future. I would like to express my thanks to the management, our employees, our customers and all our stakeholders for their invaluable contribution to our mission of generating “the Energy of Turkey.”
Enerjisa Enerji Chairman of the Board
As we are managing Turkey’s largest electricity distribution and sales network, we create long-term value for all stakeholders. As of 2019, we provide uninterrupted electricity distribution and retail services to 10 million customers and 21,5 million users in 14 provinces with approximately 10,000 employees.
As part of our operations, we offer social and environmental benefits for all stakeholders in our ecosystem. Global trends such as digitalization, democratization, decarbonization, deregulation and decentralization have been remolding us, our business and the value we create. These trends provide great opportunities for new business models and services, as they are revolutionizing the sector by promoting social justice, reducing carbon intensity, decentralizing renewable energy generation and storage and improving market openness and competition. We proactively respond to the trends affecting our industry.
We are continuing to build the infrastructure for electric vehicle charging stations. Since 2018, we have been more active in this sector as we acquired the majority of shares in Eşarj. In addition to EV charging stations, we closely monitor the markets to seize opportunities relating to innovative business areas such as electricity storage, which will shape the future of sustainable transportation applications and smart home technologies.
In 2019, we increased our customer satisfaction score from 3.90 to 3.98 over 5, thanks to the Net Promoter Score (NPS) and Customer Satisfaction (CSAT) systems we implemented in 2018 to track end-to-end customer satisfaction.
We act with respect and responsibility for the environment in all our activities. We focus on reducing the hazardous effects of our activities on the environment by continuously improving our environmental performance. Accordingly, in 2019, we revised our Environmental Policy in line with our environmental sustainability goals and included topics such as resource efficiency, air and water emissions, climate change mitigation and biodiversity in our policy. We have started to prepare Ecosystem Assessment Reports to reduce the potential negative impact of new projects and investments on the living world. We reduced our electricity-related CO2 emissions, as 989 MWh of our electricity consumption is directly from renewable energy sources.
We create pioneering collaborations and opportunities while investing in talents. Consisting of young Enerjisa employees, Young Advisory Board give us a new and diverse perspective on our projects and practices. The Young Advisory Board was awarded “the Sabancı of the New Generation Award” in 2019. As part of our NAR Corporate Intrapreneurship Program, we collected 249 innovative ideas this year - the highest number of ideas since the launch of the project. With the selected projects, we aim to differentiate ourselves in areas such as efficiency, Occupational Health and Safety and sharing economy. In 2019, we allocated approximately TL 15 million to R&D and innovation investments to lead our sector and rise above the competition.
As we were working on our Sustainability Report, the COVID-19 pandemic began, which has changed the way we live and work. The outbreak revealed the vulnerabilities in the global healthcare system and traditional business models, while confirming the vital importance of electricity. Amid the COVID-19 pandemic, we have prioritized human health and operational sustainability. Therefore, we have established business continuity and crisis management committees with the consultation of our doctors and have adopted certain measures to protect the health of our employees and maintain our infrastructure against varying demand and supply. We have made our customers’ lives easier at home by reaping the benefits of our grid investments.
In the future, we aim to secure our position as the leader in the Turkish energy sector and set a global benchmark. I thank all of our stakeholders, especially our employees, for their unflagging support over the years.
CEO of Enerjisa Enerji
We are happy to share our first Integrated Sustainability Report with you. As a responsible public service company, we strongly feel that sustainability efforts need to be at the heart of all our actions and for the benefit of everyone. As it is our ambition to be a role model within the sector and beyond, we strive to lead sustainability efforts and actively shape the future of tomorrow’s energy world. We are convinced that sustainability is the key driver behind most of the fundamental megatrends our sector will experience going forward.
In this new energy world, energy is being produced more locally, on a smaller scale and stored for the time energy is needed. It is produced through the earth’s resources not on the expense of it; providing clean renewable energy to society. Customers are increasingly informed and dictate how and when energy is being produced and consumed, leading the way forward towards new uses of energy; electrical cars, smart cities and connected households. Already today, in many parts of the world customers produce energy themselves to share among neighbors within communities or store it for their own future needs through battery solutions. With developed grid infrastructures, customers can also opt to sell back the energy by feeding it into the grid and thus be in control of their own energy costs. Developments that will only continue to increase in the new energy world of tomorrow.
Our key businesses being Distribution and Retail are the key enablers for the new energy world. The backbone of the new energy world will be the energy grids, which no longer will be one-way networks, but instead act as smart interconnectors of complex energy flows. The retail business is the heart of the new energy world and we focus on customers solutions which is the forerunner of new developments such as e-mobility and co-generated local power plants.
With these convictions in mind, our approach to sustainability goes far beyond environmental and human rights protection. We believe that in order to successfully manage future challenges, our sustainability strategy needs to be fully integrated in our business strategy. For us this means that all of our sustainability efforts are channeled towards reaching our strategic business targets and similarly that all of our business initiatives are in line with our sustainability efforts.
We are using this format to demonstrate our initiatives in order to provide the highest degree of transparency. Similar to our financial reporting, our sustainability reporting is transparent, timely, relevant and reliable. Our cooperation with international institutions such as the European Bank for Reconstruction and Development (EBRD) for loan and bond processes, as well as our continuous dialogue with institutional investors, consumers, several think tanks and global thought leaders keep us up to date and help us to improve further.
Dr. Michael Moser
CFO of Enerjisa Enerji