Environmental & Social Information • Nov 11, 2024
Environmental & Social Information
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Sustainability Defending Technology.
This presentation contains information about SDT UZAY & SAVUNMA TEKNOLOJİLERİ A.Ş. ("SDT" or the "Company"), along with an analysis of its financial statements and management's forward-looking statements, which reflect the Company's expectations based on anticipated future events. While the information and analysis provided are believed to be accurate and the expectations reasonable, actual results may dier significantly from the projections due to changes in the underlying factors.
Neither the Company, its directors, employees, nor any relevant parties shall be liable for any damages arising from the use of the information in this presentation. All statements in this release, other than those reflecting historical events, including, but not limited to, statements regarding the launch of new businesses, operational activities, financial conditions, and business strategies, may be classified as forward-looking statements. Although the Company believes these expectations are reasonable, there is no guarantee that they will be realized.
The Company assumes no responsibility for the accuracy or completeness of the information in this presentation or any other written or oral information provided by the Company, its subsidiaries, board of directors, management, employees, or agents to any interested parties or their advisors.
In my 40+ year career in the Aerospace & Defence industry, it has been a privilege to witness the transformation of this sector in Türkiye and be part of its story of growth and innovation – crucial elements for sustainability.
Since I founded SDT Space & Defence Technologies, we have been committed to carrying Turkish engineering capabilities to the global stage, investing in our people and business, and supporting our community as we grow. With this document, we have now formally committed to taking care of our environment to the best of our abilities. As one of the few private Space & Defence companies to go public in Türkiye, we see this as our responsibility.
We are motivated that the technology we develop can build Turkish, NATO and other allied country deterrence against war & resilience against climate change; two significant threats that are man-made. The way we see it, formally integrating sustainability pillars to the way we do business is not an option, but a must for the benefit of our people, planet and prosperity.
SDT was established in 2005 with the ambition to become an important player in the fast-growing national defence industry. Since then, we have been taking on dierent challenging initiatives to contribute to our national security with our indigenous solutions and products while focusing on our own sustainable and steady growth in the sector as well.
Today, we all accept that our planet faces one of the biggest global challenges of all time; climate change. This is an era in which we all have common personal and institutional responsibilities to secure a sustainable future.
Being fully aware of this fact, at SDT we committed ourselves to be a part of the global eort to mitigate possible destructive results of this hard-to-avoid phenomenon. We integrate sustainability throughout our corporate strategy and keep taking actions in three principal categories–environmental, social and governance.
Even though the stakes have never been higher for the planet and the society, we keep the faith that we can overcome this great diiculty with a solid, collective and coordinated cooperation at a global scale.
This document has been prepared to communicate the sustainability approach of SDT Space & Defence Technologies. This is the inaugural document sharing SDT's commitment to sustainability with its stakeholders. This document highlights the actions we have taken to (1) craft a sustainability strategy & governance framework, (2) track sustainability data, (3) set sustainability targets, and (4) communicate the realization of these targets to our stakeholders. As reflected in our approach to preparing this document, as a technology company we value simplicity and succinctness.
SDT is primarily a software and electronic manufacturing company, operating out of leased oices of 4,500m . SDT is preparing to relocate to its owned 16,000m oices in 2025 at the HAB Aerospace Zone, and we expect our energy and utility consumption to increase in correlation. Given the importance of comparing data from year-to-year, we believe that 2026 will demonstrate to be our base year for communicating accurate and comparable environmental data. Nonetheless, we have taken the step to start tracking our environmental data to share with our stakeholders and gain valuable insight to set our course right for long-term sustainability. This document covers our sustainability strategy and indicates our contribution to the UN Sustainable Development Goals (SDGs). For questions about the report, you can reach out to [email protected]. Comparable data refers to year end 2023 and any other corporate data is latest as of 3Q2024.
| Planet Approach | 26 |
|---|---|
| • Carbon Footprint & Energy Eiciency |
27 |
| • Water & Waste Management |
28 |
| • Transitioning to Lower Carbon Technology |
28 |
| People Approach | 29 |
| • Talent Acquisition & Management |
30 |
| About Us | 07 | |
|---|---|---|
| • Mission & Vision |
08 | |
| • Values |
09 | |
| • Products |
10 | |
| • Ownership & Group Companies |
11 | |
| Sustainability Approach | 12 | |
| • Sustainability Governance |
13 | |
| • Material Topics |
14 | |
| Governance Approach | 15 | |
| • Organizational Structure |
16 | |
| • Board Committees |
17 | |
| • Corporate Policies |
18 | |
| • Stakeholder Engagement |
19 | |
| • Memberships & Partnerships |
20 | |
| • Risk & Opportunity Management |
21 | |
| • Quality Management |
22 | |
| • Innovation & Technology |
23 | |
| • Digital Transformation & Data Security |
24 | |
| 6/35 | • Supply Chain Management |
25 |
SDT Space and Defence Technologies was founded in 2005 by Mehmet Dora & operates in ODTÜ Teknokent, Ankara. Since its founding, SDT develops competitive, innovative, comprehensive technological products. While SDT's specialties lie primarily in aerospace and defence systems design and production, we also focus on dual-use products that are transferred to other value-added sectors as well.
To provide sustainable, competitive, and reliable Turkish products and engineering solutions both in national and international markets by respecting all stakeholders' interests.
Being the preferred technology company both in national and international markets due to:
Makes quick and straightforward decisions, takes prompt action, and adapts to changing conditions without loss of progress.
Carries out all its activities in a way that leads to the added value generation and by optimizing resource use.
Implements and supports the principle of devoted collective work to achieve the common corporate goal.
Carries out all kinds of activities with a perspective that is focused on the future, company objectives and results.
Continuously assesses and improves corporate processes and activities based on the requirements of the prevailing period, sector, market and technologies.
Makes use of promising new technologies in the design and development of innovative products and implements innovative practices.
50/50 JV for RF
Jammer Systems
40% owned: advanced technology R/P&D in defence systems
100% owned: naval simulation systems
100% owned SDT company to lead operations in Azerbaijan
Other %8.77
At SDT, sustainability is a holistic framework to view our company. This year, we have oicially commenced our sustainability strategy and adopted "Sustainability, Defending Technology" as our motto to communicate our intent for the future. This employee suggested motto was selected by a company wide survey among others. We are mindful of respecting all our stakeholders in how we do business, more than ever. We are also conscious that sustainability is an active process that we must assess, nurture and improve upon on an ongoing basis.
Three pillars form the foundation of our sustainability approach; planet, people, and governance. Our work with PwC has helped us formally craft our sustainability approach: priorities and action based on stakeholder feedback, as well as diagnosis of risks and opportunities under these pillars. PwC also held a company-wide training session to align collective knowledge and action taking. Our sustainability strategy has been presented to and approved by the board.
The Board of Directors have established a "Sustainability Committee" on February 2024.
Monthly Reporting consists of reviewing:
3-month report to the board consists of highlighting:
Beril DORA Board Member
Ömer KORKUT General Manager
Erkan DORA Deputy GM, Operations
Deniz ALTIN Business Development Director
Burak ATAGÜN Production Program Director Cüneyt KARACAN Projcet Control Oice Manager
Selda ÇAYAN HR Manager
Aslı YAKAR Acqusition Manager
Kemal Semih DOĞU Quality Control Manager
Esen AKTÜRK Finance Manager Özkan YAZGAN Corporate Information Manager
Erkan KARAHANOĞULLLARI Administrative Manager
13/35 Sustainability Approach
In order to set our sustainability priorities, we went through the following steps;
We identified short, medium and long-term goals for each of these 15 material topics in our strategic master plan for sustainability. These 15 topics are inclusive of 11 SDGs. Our designated priority SDGs are climate action, quality education, industry/innovation & infrastructure, responsible consumption & production, decent work & economic growth.
| Governance | Planet | People | |
|---|---|---|---|
| 1 | Corporate Risk Management |
Carbon Footprint & Energy Eiciency |
Health, Wellbeing & Safety |
| 2 | Innovation & Product |
Waste Management |
Talent Acquisition & Management |
| 3 | Digital Transformation & Data Security |
Water Management |
Customer Satisfaction |
| 4 | Quality Management |
Low Carbon Technology Transition |
Diversity, Equality & Inclusion |
| 5 | Ethical Work Principle |
Caring for the Community |
|
| 6 | Supply Chain Management |
| Short – Term (2024) |
Medium Term (2025 – 2029) |
Long Term (2030) |
|
|---|---|---|---|
| Corporate Risk Management |
• ESG committee and governance set-up |
• Sustainability Index • GRI, TSRS 1 & 2 |
• Sustainability Index score improvement |
| • Risk & opportunities designation |
• Compliant Reporting |
• GRI, TSRS 1 & 2 Compliant Reporting |
|
| • Updating policies |
|||
| Innovation & Product |
• R&D roadmap & incentive set-up |
• Increase in R&D spend based on % of revenue |
• Increase in R&D spend based on % of revenue |
| Digital Transformation |
• 10% reduction in y-o-y paper use |
• 20% reduction in y-o-y paper use |
• 30% reduction in y-o-y paper use |
| & Data Security | • 50% process digitalization |
• 75% process digitalization |
• 50% process digitalization |
| • Maintenance of ISO 27001 |
• Maintenance of ISO 27001 |
• Maintenance of ISO 27001 |
|
| Quality Management |
• ISO 14001 & 45001 certificate prep |
• ISO 14001, ISO 45001 |
• ISO 50001 |
| Business Ethics | • Business Ethics training |
• Business Ethics training |
• Business Ethics training |
| Supply Chain Management |
• Supply chain formal mapping and diversification |
• Supply chain early risk identification system set up |
• Supply chain early risk identification system update |
| • Supplier Awards |
15/35 Governance Approach
| Name - Surname | Gender | Corporate Role |
|---|---|---|
| Mehmet DORA | Male | Chairperson of the Board |
| Mustafa Fatih ÜNAL | Male | Deputy Chair of the Board |
| Beril DORA | Female | Board Member, Sustainability Coordinator |
| Mehmet Veysel YAYAN | Male | Independent Board Member |
| Necip Yalçın PEHLİVANTÜRK | Male | Independent Board Member |
*100% of senior management is hired locally from Ankara.
To ensure that the Board of Directors performs its duties and responsibilities eectively, three committees have been established in accordance with Article 4.5 of the Capital Markets Board's Corporate Governance Communiqué No. II-17.1.
Audit Committee: Oversees the company's accounting system, the public disclosure of financial information, independent auditing, and the functioning and eectiveness of the company's internal control and internal audit system.
Early Detection of Risk Committee: Responsible for the early identification of risks that may endanger the company's existence, development, and continuity, taking necessary measures regarding identified risks, and managing risk. Reviews the risk management systems at least once a year.
Corporate Governance Committee: Reviews the implementation of corporate governance principles and provides recommendations to the BoD to improve corporate governance practices. The duties of a "Remuneration Committee" are assumed by this committee. No reported incidents of corruption and actions taken.
| Name - Surname | Gender | Corporate Role | Committee Member | Committee Role |
|---|---|---|---|---|
| Mehmet Veysel YAYAN |
Male | Independent Board Member |
• Audit Committee • Corporate Management Committee |
• Audit Committee Head • Corporate Management Committee Head |
| Necip Yalçın PEHLİVANTÜRK |
Male | Independent Board Member |
• Risk Committee • Audit Committee |
• Risk Committee Head • Audit Committee Member |
| Mustafa Fatih ÜNAL |
Male | Deputy Chair of the Board |
• Corporate Management Committee |
• Corporate Management Committee Member |
| Beril DORA | Female | Board Member | • Risk Committee |
• Risk Committee Member |
| Emel KOÇAK | Female | Head of Investor Relations |
• Corporate Management Committee |
• Corporate Management Committee Member |
We always acknowledge that we're on a journey toward improvement and our policies reflect this constant iterative attitude we have.
Digital Transformation*
*published on SDT website, in development process or kept internal otherwise.
Tech-clusters
Corporate Website
| • Board Members & Management |
• Internal Meetings • Monthly Board Meetings (monthly financials) |
|---|---|
| • Employees |
• Employee Surveys • Trainings • Human Resources Handbook • Internal Portal |
| • Customers • Sector & Civil Organizations |
• Sector Conference & Exhibitions • Bilateral Meetings • Industry Committees & Organizations • Inspections |
• Financial Organizations • Bilateral Meetings
| Purpose | Date of Membership |
|---|---|
| interests. | 11.02.2005 |
| To support industrial establishments in Ankara, to increase their competitiveness, and to ensure that production is carried out in an environmentally sensitive manner. |
03.10.2005 |
| Technology & Innovation committee & Regulation & International Relations Committee member Turkish Defence and Aviation Industry advocate on domestic and international platforms. |
18.01.2007 |
| Aerospace & Defence service and product export organization. |
07.02.2012 |
| University tech-cluster focused on defence, aviation, and space sectors and growing the ecosystem. |
17.04.2018 |
| Service export advocate institution, supporting Turkish companies navigate export related matters. |
27.04.2018 |
| University tech-cluster focused on homeland security, defence, aviation, and cyber security by using R&D and innovative technologies to grow the ecosystem. |
04.04.2023 |
| Human Resources association for investing in and growing human capital. |
26.10.2022 |
| Electronic Industry association to promote competitiveness, increase contribution to the economy. |
28.07.2023 |
20/35 Governance Approach
| Standard/ Certificate |
Purpose & Category |
Valid Through |
|---|---|---|
| ISO/IEC 27001 | Information Security | 28 July 2025 |
| AS 9100 ISO 9001 (TS/EN) |
Aerospace, Defence & Space Quality Management System |
24 October 2024 |
| NATO AQAP 2310 | NATO Quality Management System |
18 November 2025 |
| NATO AQAP 2210 | NATO Specific Quality Management Security System |
18 November 2025 |
| CMMI-DEV | Corporate Maturity - Level 3 |
21 December 2026 |
| CMMI-SPM | Supply Chain Maturity - Level 3 |
21 December 2026 |
•We completed the SDT ERP system integration in 2023 which had commenced in 2020.
•We are sensitive to customer and employee privacy & security of information. We carry out operations with this in mind with an information sharing at a "need-to-know" basis. We govern privacy and data protection in our Privacy & General Data Protection policy. We maintain ISO 27001 in this regard to make sure our practices are at a global standard.
| Suppliers | 2023 | 2022 | 2021 |
|---|---|---|---|
| Local (#) | 334 | 266 | 386 |
| Local (% of total) | 71% | 68% | 57% |
| International (#) | 135 | 123 | 290 |
| International (% of total) | 29% | 32% | 43% |
| Total | 469 | 389 | 676 |
| Local (% of total spending) | 88.97% | - | - |
| Short – Term (2024) |
Medium Term (2025 – 2029) |
Long Term (2030) |
|---|---|---|
| • Measuring carbon footprint (scope 1 & 2) |
• LEED certificate • High Energy Rating • Measuring carbon footprint (scope 1 & 2) |
• Measuring carbon footprint (scope 1, 2, 3) • Carbon emission reductions |
| • Separation of waste, finding optimal recycling solutions • Reduction of single use plastic |
• Data collection on all waste, and reduction plan • Elimination of single use plastic • Climate friendly packaging solutions on products |
• Zero waste |
| • Water usage data collection |
• Climate friendly water armature usage • Water collection system |
• Water usage data collection and eiciency measures |
| • Reviewing production processes under this scope |
• Electric charging stations • Transitioning company cars to electric • Installing solar panels on the roof |
• Reviewing most up to date low-carbon technology relevant to SDT, & applying feasible ones |
26/35 Planet Approach
• As the human population and activities have significantly increased in the last 150 years, our impact on our ecosystem has become unavoidable. While the planet is likely to endure this anthropocentric driven changes in the ecosystem and potential cataclysmic event, it is us humans who face the larger challenge of reducing, mitigating and adapting to the changing circumstances. This reality shines a light on the symbiotic relationship we have with the natural world around us and our responsibility as a business to reduce impact to the best of our abilities–our carbon
•We measure our carbon emissions from our operations based on GHG Protocol and ISO 14064. 2026 will be a better base year for us to start tracking and comparing our emissions as we will move to our owned oice space. Energy eiciency is an important element in reducing our carbon footprint, as part of our sustainability strategy we aim to attain a LEED certificate that ensures that we operate in an energy eicient building, that drives electricity from installed roof solar panels, and where we can track our energy data more accurately. Once we attain our base year
Similar to water management, we are eager to spread awareness about waste management and the circular economy. We are separating and monitoring waste data. Our strategy is inclusive of eliminating single-use plastic, rethinking packaging, and focusing on upcycling electronics. space, • Installing roof solar panels at our owned oice space, • Analyzing our supply chain for sustainable options, • Considering lifecycle analysis and improvements on products.
Switching our car fleet to electric & adding electric charging stations in the parking lot at our owned oice
| Short – Term (2024) |
Medium Term (2025 – 2029) |
Long Term (2030) |
||
|---|---|---|---|---|
| Employee Wellbeing & Health |
• Employee Satisfaction Survey Improvement • Expanding side benefits • Natural disaster & physical safety risk determination |
• Transport service provision • Survey Improvement • Reviewing Side Benefits |
• Survey Improvement • Reviewing Side Benefits |
|
| Talent Acquisition & Management |
• Career training curriculum • Improving Candidate Engineer and summer intern conversion rate • Improving Performance Management System |
• Updating career training curriculum • Expanding Candidate Engineer & Summer Intern program • Improving Performance Management System |
• Updating career training curriculum • Expanding Candidate Engineer & Summer Intern program • Improving Performance Management System |
|
| Customer Satisfaction |
• Improving timely deliveries • Improving post-sale customer experience |
• Improving timely deliveries • Improving post-sale customer experience |
• Improving timely deliveries • Improving post-sale customer experience |
|
| Diversity, Equality & Inclusion |
• DEI training integration • DEI Policy |
• Inclusive building access • Improving the ratio of women managers & engineers |
• Improving the ratio of women managers & engineers |
|
| Community Care |
• SDT Innovation Program design • Participating in projects utilizing our technology • Signature Community Project design |
• SDT Innovation Program start • Participating in projects utilizing our technology • Signature Community Project start |
• SDT Innovation Program 5-year • Participating in projects utilizing our technology • Signature Community Project 5 year |
29/35 People Approach
| 2023 | 2022 | 2021 | |
|---|---|---|---|
| Number of Employees | 244 | 218 | 220 |
| White-Collar Employees | 176 | 153 | 155 |
| Blue –Collar Employees | 68 | 65 | 65 |
| Under 30 years old | 85 | 65 | 58 |
| 30 – 50 years old | 127 | 128 | 141 |
| Over 50 years old | 32 | 25 | 21 |
| Turn-Over Rate | 10% | 16% | 19.5% |
| Women Turn-Over Rate | 7% | 20.3% | 17.8% |
| Training hours per employee | 29.25 | 25.92 | 32.72 |
| Other workers (intern, candidate engineer) |
27 | - | - |
2023 2022 2021 % of Women Employees % of White-collar Women % of Blue-collar Women % of Women in Management Paternity Leave* Maternity Leave* Birthday Leave International Women's Day Leave (for women only) Marriage Leave 29.1% 35.8% 11.8% 34.4% 5 days 16 weeks to 6 months 0.5 day 0.5 day 3 days 27.5% 34.6% 10.8% 30.3% 5 days 16 weeks to 6 months 0.5 day 0.5 day 3 days 16 weeks to
*regulatory mandate
• At SDT Space & Defence Technologies we value the safety, wellness and health of our employees by upholding all laws and regulations while going beyond what is mandated by law with our wellness approach.
• Safety at work is fundamental to the way we do business. Health & Safety is governed by our internal Occupational health and Safety policy. All employees go through H&S training during onboarding and refresh their training every 2 years. Monthly committee meetings occur with an outside expert, and employee representatives present. In 2023
•We provide full-coverage private insurance with additional single general check-up, dental, mental and dietician session allowance per year. Our health coverage also contributes 20% to other family members' plans.
•We prioritize the team-spirit experience of our workforce and believe that creating opportunities for social bonding is important. Our employee initiative, the SDT Social Events Team, periodically plans company outings and competitions. We also support employee initiatives in sports, the SDT Running Club regularly participates in local
• Furthermore, our new oice space at the HAB will also provide sports facilities such as fitness center, tennis/volleyball/basketball courts along with other socializing hubs such as an outdoor space to support decompression and enhance team bonding. As part of our sustainability strategy, we are constantly reviewing updates to best employee wellbeing practices to support our valuable workforce and provide a holistic framework.
• Once an individual is employed by SDT, their right to the Turkish government retirement system commences. The
From the first point of contact to the delivery of our product and aftercare, our primary focus is keeping the needs of the customer at the center of our engagement. Our customer satisfaction rests on the below four pillars that we strive to constantly improve upon.
We make sure that we can add value by providing good quality, cost-eective and safe products to our customers all the while making sure we provide a courteous and timely customer care. To make sure we're doing everything we can in this regard we conduct surveys to seek feedback, advice and concerns. User manuals are prepared together with the products we deliver and delivered to customers. Scenarios that may harm the product and/or the user are given in these booklets. Each product has a label containing product identifying information and manufacturer information. Depending on the type of product, there are also labels on the product for product safety. There have been no substantiated complaints concerning incidents of non-compliance concerning the health and safety impacts of products and services.
We also take responsibility for the growth and prosperity within our community. We intend to increase our eorts in line with our own growth. Our new community care model consists of four pillars:
Employing our technology for risk mapping, conservation, waste management, disaster support among others
Donations based on employee grassroot initiatives
Scientific & Entrepreneurial Ecosystem
Promoting equal opportunity through STEM education & related-industry startup support
Donations based on rapid disaster response
STEM: Science, Technology, Engineering and Mathematics
© SDT Uzay ve Savunma Teknolojileri A.Ş Tüm Hakları Saklıdır.
Üniversiteler Mahallesi İhsan Doğramacı Bulvarı No: 37/1 Çankaya - ANKARA
Tel: (312) 210 10 15 - Pbx Faks: (312) 210 11 21 [email protected] sdt.com.tr
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This document and all information contained herein are the sole property of SDT. No intellectual property rights are granted by the delivery of this document or disclosure of its content. This document shall not be reproduced or disclosed to a third party without the express written consent of SDT. This document and its content shall not be used for any other purpose other than for which it is supplied.
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