Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate
• Human
• Innovation

Environmental Achievements

• 290 tons of CO2 emissions were avoided with our projects.
• Prepared our first CDP Climate Change and Water Security Reports.
• Established GHG emissions inventory calculation system. GHG emissions were verified via ISO 14064-1:2006.
• Reduced water consumption by 99.33% in Gemlik facility by changing chemicals in galvanization lines.
• Reduced water vapor consumption by 70% by installing air-blowing nozzles in Gemlik facility.
• Reduced total waste amount by 22% in 2020.
• Reduced waste sent to incineration by 81% compared to 2018.
• Developed products compliant with green building certifications.

Social Achievements

• Employee loyalty and satisfaction score was 80%.
• 82% of our factory employees were employed under collective bargaining agreement.
• Provided 55,811 hours of training for our employees.
• Provided 1,741 hours of environment training for 629 employees.
• Provided 22,236 person*hour training for our employees within the scope of Occupational Health and Safety.
• Employed 1 foreign and 37 disabled persons for 2020.
• Published Guide to Avoid Discriminatory Speech and Actions in Business Life.
• Supported the entrepreneurial ecosystem through our CoIN platform.
• Awarded the Golden Glove and Golden Suggestion Awards for works in OHS and manufacturing activities.
• Won “Pipe Manufacturer of the Year” award in the “Steel Excellence Awards”.

Governance Achievements

• Established Early Risk Detection and Management Committee.
• Participated in trainings provided by Borusan Holding regarding ethical behavior and corruption related risks.
• No discrimination cases were found among the cases inspected by Borusan Holding Ethics Board (7 out of 8 cases inspected).

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to COVID-19 pandemic.
• Water risks due to location in medium to high water risk regions.
• Climate change impacts on operations and product demand.

Mitigation Strategies

• Switched to remote working model for employees.
• Implemented “Sağlık Olsun” application to monitor employee health and minimize infection risk.
• Implemented new supplier selection model evaluating suppliers on climate-related activities.
• Developed alternative sourcing strategies.
• Implemented consigned system for non-raw materials to minimize impact of supply delays.
• Conducted alternative supplier and quality improvement research.

Supply Chain Management

Responsible Procurement

• Considering environmental and social criteria in supplier selection.
• Using Material Safety Data Sheets (MSDS) to assess materials.
• Prioritizing local suppliers (84% of supplier costs and 95% of total suppliers in 2020).

Climate-Related Risks & Opportunities

Physical Risks

• Droughts
• Floods

Transition Risks

• Changes in global oil pipe market due to climate change
• Changes in consumer behavior
• Legal requirements

Opportunities

• Development of energy-efficient products
• Development of alternative energy resource infrastructure

Reporting Standards

Frameworks Used: GRI

Certifications: ISO 14001, ISO 50001 (Gemlik facility), ISO 14064-1:2006

Sustainable Products & Innovation

• Pipes compliant with green building certifications
• Pipes with improved water and energy efficiency

Awards & Recognition

• Pipe Manufacturer of the Year (American Metal Market)
• Golden Glove Award (MESS)
• Golden Suggestion Award (MESS)

Environmental Metrics

ESG Focus Areas

• Climate
• People
• Innovation

Environmental Achievements

• 14% reduction in greenhouse gas measurements compared to 2021 (ISO 14064:2018 standards)
• 700 tons of CO2 emissions reduced from all emission sources
• 33% reduction in water consumption compared to 2021
• 13.2% increase in the amount of water recovered
• 8 green procurement projects implemented

Social Achievements

• Launched Supplier Sustainability Index and Portal
• Received the International Occupational Safety Award in 2022 from the British Safety Council
• Employee engagement rate rose to 82% in 2022
• Increased office female employee ratio to 28.1%, field/factory female employee ratio to 2.95%, and female leader ratio to 18% in 2022
• Implemented the second phase of the ‘First, I’m a Father’ project

Governance Achievements

• Prepared the Sustainable Finance Guide
• Implemented electronic signatures for bank instructions, saving approximately 20 trees environmentally
• Conducted 3 internal and 3 IT audits by the Holding, including environmental and social assessments

Climate Goals & Targets

Environmental Challenges

• Regional tensions (Russia-Ukraine)
• Customs barriers and protectionist policies
• Rising input prices
• Fluctuations in energy and raw material prices
• Rapid decline in global steel demand

Mitigation Strategies

• Identifying new opportunities and strategies
• Integrating external factors into strategy
• Developing a way of doing business that benefits sustainable development goals
• Power purchase agreement (PPA) to obtain energy from renewable sources
• Feasibility studies for a Wind Power Plant with Borusan EnBW

Supply Chain Management

Responsible Procurement

• Supplier Sustainability Index and Portal
• Sustainable Procurement Policy (2023)
• Supplier Working Conditions Protocol
• Green Procurement initiatives

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Natural disasters

Transition Risks

• Regulatory changes (e.g., CBAM)
• Market shifts

Opportunities

• Development of energy-efficient products
• Renewable energy investments

Reporting Standards

Frameworks Used: GRI Standards, UN Global Compact

Certifications: ISO 14064-1:2018, ISO 14046-1:2014, ISO 50001, ISO 14001, ISO 45001, ISO 9001, ISO 10002, IATF 16949, API 5L, API 5CT, API Q1, REACH

Third-party Assurance: Limited third-party assurance for water and climate data

UN Sustainable Development Goals

• SDG 6
• SDG 7
• SDG 8
• SDG 9
• SDG 10
• SDG 12
• SDG 13
• SDG 17

The report details how various initiatives contribute to these SDGs.

Sustainable Products & Innovation

• Carbon Neutral Pipe
• Other new products mentioned in the report

Awards & Recognition

• Istanbul Chamber of Industry Green Transformation Awards (Environmental Sustainability Management)
• Şahabettin Bilgisu Environment Awards (Large Scale Enterprise Category Metal Sector)
• British Safety Council International Safety Awards Distinction Award
• MESS “Stars of Occupational Safety” Recommended Good Practice Award
• Brandon Hall Group 2022 excellence awards (Best Progress in Competence and Talent Development, Best Learning Program Results)
• Talent Board “Best Candidate Experience” award

Environmental Metrics

ESG Focus Areas

• Climate Change
• Human Capital
• Innovation

Environmental Achievements

• Reduced greenhouse gas emissions by 13% compared to 2021 (verified by Bureau Veritas)
• Reduced water consumption by 32%

Social Achievements

• Employee satisfaction rate of 79%
• Received the International Business Safety Award from the British Safety Council

Governance Achievements

• Established a Sustainability Management structure with 95 people and 7 agile teams
• Implemented a climate change mitigation budget of $2,250,000

Climate Goals & Targets

Environmental Challenges

• Global economic uncertainty
• Climate change related physical and transition risks (extreme weather, natural disasters, regulatory changes, market shifts)
• Supply chain disruptions
• EU's Corporate Sustainability Reporting Directive (CSRD) and Turkey Sustainability Reporting Standards (TSRS) compliance requirements
• Potential impact of carbon pricing mechanisms (e.g., EU Emissions Trading System) and carbon border adjustment mechanisms (CBAM)

Mitigation Strategies

• Regular risk assessment and mitigation strategies
• Integration of sustainability into all business processes
• Proactive risk assessment, planning, and action steps to increase resilience
• Collaboration with consultants for physical risk assessment
• Development of alternative sourcing strategies
• Continuous monitoring of global and regulatory trends

Supply Chain Management

Responsible Procurement

• Sustainable procurement criteria

Climate-Related Risks & Opportunities

Physical Risks

• Flooding
• Heat stress
• Increased condensation

Transition Risks

• Regulatory changes (e.g., EU's CSRD, TSRS, CBAM)
• Market shifts

Opportunities

• Investments in low or zero-emission energy sources
• Energy efficiency improvements

Reporting Standards

Frameworks Used: GRI Standards, UN Global Compact (UNGC)

Third-party Assurance: [object Object]

UN Sustainable Development Goals

• Goal 6
• Goal 8
• Goal 12
• Goal 13
• Goal 17

Initiatives contribute to these goals through various environmental, social, and governance actions.

Awards & Recognition

• International Business Safety Award (British Safety Council)