The Scope and Purpose of this Report

The purpose of this report is to share the desired actions designed to minimize the potential adverse economic, environmental and social effects of any operation, product or service directly connected with the activities of Borusan Holding and its Group companies. Furthermore, it aims to measure, monitor and improve the performance related to sustainability, with our stakeholders.

Since this is the first report to detail the sustainability performance of Borusan Holding, it is limited to covering the local economic, environmental and social activities completed by the Holding and its Group companies up until July 2008. Beyond this, sustainability reports will be prepared biennially, with the next Group sustainability report covering the 2008-2009 term.

The specifi c subjects covered in the report include all the areas to which the Group gives priority and in which it is involved within the scope of sustainability. In addition to the Group’s priorities, the reports to be prepared in the future will also cover sustainability issues which are important to the stakeholders of the Holding and its Group companies. The priority stakeholders to be engaged at this stage will include those who are infl uenced by the Group’s economic, social and environmental activities as well as all those who have direct infl uence on such activities, including employees, the main shareholders, suppliers, customers, local management / local society, fi nancial institutions and public. The Group companies covered in this report include Borusan Mannesmann Boru, Borçelik, Kerim Çelik, Borusan Makina, Borusan Güç Sistemleri, Borusan Otomotiv and Borusan Oto, Supsan, Borusan Manheim, Borusan Lojistik, Borusan Telekom and Borusan Enerji. The data presented herein has been obtained from recent fi nancial and environmental inspection reports.

UN Global Compact

In 2006, Borusan Holding signed the United Nations Global Compact agreement and declared that it would adhere by the ten primary principles pertaining to human rights, labor, the environment and corruption. This is also the Holding’s fi rst Communication on Progress Report. (Related information is on page 58) www.unglobalcompact.org

GRI (Global Reporting Initiative)

The Borusan Holding Sustainability Report is based on the principles of the internationally accepted Global Reporting Initiative (GRI) global sustainability reporting guidelines, known as the G3 Guidelines. The G3 Guidelines provide a framework which organizations can voluntarily adopt and use for reporting practices to share their environmental, economic and social activities and their results. (Related index is on pages 55 -57) www.globalreporting.org