Message from the Chairman of the Board

Borusan’s Road to Sustainability

The concept of “sustainability” has certainly made its mark on the new millennium. The dictionary defi nition of “sustainability” is the operation of any system without interruption or breakdown, nor depletion from overconsumption or the overloading of the main life support systems.

The word was originally used in the academic world during the second half of the decade of the 80’s, in particular due to the geometric increase in the consumption of natural energy sources. Since then, the term has been adopted by the international community as well. In 1987 the word “sustainability” became the basis of the United Nations Environment and Development Report, stemming from the following sentence: “Humanity is capable of development that meets the needs of the present without compromising the ability of future generations to meet their own needs.” Therefore, sustainable development became defi ned as the management of the methods supporting economic growth as well as prosperity while protecting the environments and life quality of everyone on earth. During the past 10 years, initially macroeconomic sustainability, followed by microeconomic sustainability, were acknowledged as the criteria for success. In business life, respect and support for the environment, employees, culture and the whole of society became an indispensable part of success.

While debates continued globally as to the specifi c requirements of economic, social and environmental sustainability Borusan began implementing many of these measures in all of our companies without formally doing so in the name of sustainability. However, we did not possess a consolidated breakdown of this principle and its applications.

ITherefore, within the framework of sustainability, we took the following steps prior to presenting this report:

  • In the process of preparing our 2006-2010 strategic development plan, we clearly defi ned what is now known as the “Borusan Way.”
  • From this perspective, we reassessed our principles and methods of implementation.
  • We gained the capability to measure our own performance and began to prepare this sustainability report.

In 2006, we signed the United Nations Global Compact agreement, consisting of ten articles covering topics ranging from human rights and work standards to protecting the environment and measures designed to combat corruption. As a result of this UN initiative, which commenced in 1999 and currently includes 1,300 companies across the globe, we made a corporate commitment that the “Borusan Way” would chart our course.

In terms of growth our company has consistently performed signifi cantly higher than the national average. In this process of rapid growth the “Borusan Way” has become our primary philosophy with regard to the environment, the rights of employees and our contribution to society.

The report in your hands currently refl ects the sustainability related activities of all the companies within our Group up until July 2008. I am quite confi dent that we will continue our excellent performance this year, an improvement in our performance which will be eminently refl ected in our 2008-2009 sustainability report.

A. Ahmet Kocabıyık
Chairman of the Board
Borusan Holding