Sustainable Investment Policy

Sustainable Investment Policy
ESG

PURPOSE AND SCOPE

Türkiye Sigorta considers responsible investment as one of the fundamental elements of long-term value creation and effective risk management. In this regard, it adopts the principle of taking Environmental, Social, and Governance (ESG) impacts into account within its investment activities. The Company operates with the awareness that ESG factors may have an impact on financial performance in investment decisions and integrates these factors into its investment processes.

This policy aims to integrate a sustainability perspective into Türkiye Sigorta’s investment activities and covers all relevant portfolios and asset classes of the Company.

1. IMPLEMENTATION

In Türkiye Sigorta’s investment activities, compliance with applicable environmental, social, and governance-related legislation is essential. The Company considers ESG risks and opportunities when evaluating investment decisions and prefers investment alternatives with stronger sustainability performance under similar conditions.

This approach is based on the principles that effective management of ESG risks supports long-term financial performance, that sustainability can only be achieved through the joint realization of economic and social benefits, that strong ESG practices enhance corporate resilience, and that activities not aligned with a responsible investment approach may create reputational and financial risks.

Türkiye Sigorta also monitors and evaluates ESG performance in investment processes and, when necessary, reviews investment decisions accordingly.

2. DEFINITION AND SCOPE OF ESG FACTORS

In investment evaluations, Türkiye Sigorta considers environmental factors such as climate change-related risks, greenhouse gas emissions, energy and resource efficiency, water and waste management, and impacts on biodiversity. Social factors include labor rights, occupational health and safety, human rights, customer rights, data privacy, supply chain practices, and societal impacts. Governance factors cover corporate governance structure, ethical rules, anti-corruption measures, transparency, risk management, and respect for stakeholder rights.

3. ASSET CLASS AND SECTOR-BASED APPROACH

Türkiye Sigorta implements ESG integration by taking into account the characteristics of the asset classes in which investments are made, as well as the specific risks and opportunities of sectors. In this context, ESG performance and corporate governance practices, ESG risks, and sustainability performance are evaluated according to the asset classes in which investments are made. In the insurance sector specifically, the financial impacts of physical and transition risks related to climate change, the reflection of these risks in modeling and pricing processes, and sustainable insurance practices are analyzed. In addition, customer protection, data security, and corporate governance elements are integrated into investment and underwriting processes, adopting a holistic evaluation approach.

4. EXCLUSION (PROHIBITED ACTIVITIES)

Türkiye Sigorta does not invest in activities prohibited by applicable national legislation and international conventions to which Türkiye is a party, as well as activities that are not aligned with the Company’s responsible investment approach. The activities defined within this scope are listed under the “Prohibited Activities List” attached to this policy.

5. MONITORING AND REPORTING OF OUTCOMES

Türkiye Sigorta regularly monitors and evaluates the ESG performance of its investments. In this context, portfolio-level ESG indicators, carbon intensity, and sustainability performance are tracked. The results obtained are shared transparently with relevant stakeholders.

ANNEX: PROHIBITED ACTIVITIES LIST

Türkiye Sigorta does not invest under any circumstances in activities and products prohibited by national legislation and international conventions, as well as any activities that lead to human rights violations. In this context, projects involving forced labor or child labor, including any involvement of children in production processes under exploitative or harmful conditions, as well as activities where child labor is detected in areas where it is prohibited under national and international law, are excluded from investment.

Forced labor refers, as defined in International Labour Organization (ILO) conventions, to situations where a person is compelled to work or provide services against their free will through the use of force, threat, or fear of punishment. In the context of child labor, the minimum age is assessed in accordance with ILO Fundamental Human Rights Conventions and relevant national legislation.

In addition, production of weapons of mass destruction and landmines, trade in species protected under CITES, activities causing severe and irreversible environmental damage, entities listed under sanctions lists, and high-carbon-intensive activities without a clear transition plan are also among the areas in which Türkiye Sigorta does not invest.

RESPONSIBILITY

This Policy has been approved by the Board of Directors of Türkiye Sigorta A.Ş. and is periodically reviewed in light of changes in legislation, the Company’s activities, and evolving governance expectations.