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SUSTAINABILITY REPORT www.kibar.com TABLE OF CONTENTS ABOUT THE REPORT 3 MESSAGES 4 KİBAR GROUP 6 WORKPLACE 16 OUR ENVIRONMENTAL AWARENESS 19 THE VALUE WE ADD TO THE SOCIETY 24 2 The Sustainability Report 2013 of Kibar Group includes Assan Aluminyum, Assan Gıda, Assan Hanil, Assan Panel and İSPAK. Unless otherwise stated, the information ABOUT related to all companies of Kibar Group is under the title of Kibar Group. GLOBAL COMPACT THE Ten principles of the United Nations Global Compact (UNGC) consist of the titles of human rights, labor standards, environment and anti-corruption. The United Nations Global Compact particularly asks companies to embrace, support and implement REPORT these principles. This report has been prepared in For more information about the principles of the United Nations Global Compact, please accordance with the Global Compact visit http://www.globalcompactturkiye.org/global-compact-turkiye/ilkeler/. Progress Report. The report covers the period of January-December The Global Compact, launched by the United Nations in 2000, is an important initiative 2013. However, certain data is compared to 2011 and 2012 in order today with more than 8000 signatory companies and over 12,000 participants in total to obtain more significant results. of 145 counties around the world. In Turkey, UNGC has been active since 2002 and has For any opinion and suggestions 291 members as of 2013. about the report, please contact [email protected]. The United Nations Global Compact asks the signatory companies embracing its 10 universal principles to reveal their existing practices within the scope of the said principles, their management approaches based on performance and their planning to the stakeholders and the large masses via progress reports at least once in a year. 3 MESSAGE FROM CHAIRMAN OF THE BOARD “We establish our “innovation” concept, one of the indispensable elements of our group culture, aiming to strengthen our sustainability performance in addition to our financial success.” Dear Stakeholders, As Kibar Group, with our innovative, responsible, participative vision that puts the sustainable growth in the center and creates value, we signed the United Nations Global Compact in 2013 to contribute to the aim of a sustainable future in accor- dance with the “United Nations Millennium Development Goals”. We are excited to present our first Progress Report prepared within this scope adopting a participative process. Today, together with globalization movement, environmental, social and economic issues including climate change, inc- rease in population, reduced natural resources, demands and expectations of the shareholders, pressure by civil society, rapidly changing regulations that affect the world markets pose greater risk than ever on the private sector. Only companies with a modern, innovative and future-oriented vision can obtain competitive advantage by giving proactive answers to the diversified risks by reforming their strategic operations within the framework of these issues. As Kibar Group, while we try integrating the sustainable management in our all business processes with this concept, we also strive to further strengthen our two-way communication depending on the expectations and demands of our stakeholders. Operating since 1972, our Group has accelerated Turkey’s development with 22 companies operating in the industries of me- tal, automotive, construction materials, packaging, logistics, real estate, food, service and energy and providing employment to about 7000 people today. With its strong foreign partnerships, its broad experience in industry, service and trade in Turkey and its contributions to production, employment, trade, service and exportation, Kibar Group creates an important value for Turkey to achieve its Sustainable Development Objectives. We establish our “innovation” concept, one of the indispensable elements of our group culture, upon the aim to strengthen our sustainability performance in addition to our financial success. After having signed the United Nations Global Compact, we have performed an important structuring in our management in order to strengthen our corporate structure and to meet the exportation needs resulting from the diversification of development and operation branches of Kibar Group. Accor- dingly, we are pleased to see that our vision has developed alongside with our experience and reputation. As a result of these innovations, we have settled Kibar Group’s stability and sustainable growth, in accordance with its strategic aims, in a way to add value to our country and to the world. We continue to contribute to the local development, in the regions where we operate, with the concept of responsible company and with the investments of infrastructure, health and education. Again within the framework of these innovations, thanks to our mission to include all of our stakeholders, we have approached our social responsibility projects with a perspective of providing benefit both to the society and the economy. As Kibar Group, we take firm steps forward for a sustainable, responsible, reliable, transparent and fair world without comp- romising our values which have resulted trust and prestige for our Group over the years. In the light of this objective, our progress report, prepared within the scope of United Nations Global Compact, is also the first Sustainability Report of Kibar Group. I owe a debt of gratitude towards our stakeholders who have the biggest share in our success from past to present. We be- lieve that with the strength we get from you, we will grow and develop to achieve socio-economic development of Turkey and we will keep on working hard. Best regards, Ali Kibar CHAIRMAN OF THE BOARD KİBAR HOLDİNG 4 MESSAGE FROM CEO “We wish to create long lasting values while fulfilling our corporate responsibilities by being aware of that the society and the environment are the inseparable whole.” Dear Stakeholders, Beginning from our foundation, we have grown to good and new with you. Today, when the distances and frontiers disappe- ar, every day we get closer with our stakeholders and we make our cooperation stronger. We are very glad to announce you our progress report required by the new commitment of which we are signatories and we believe that it will empower our strong bounds with our stakeholders. In 2013, as Kibar Group, we signed the United Nations Global Compact including the global principles to form a consistent, fair and transparent global economy in today’s world. And I wish to express that we are proud of being a part of Global Compact network in Turkey which is one of the ten countries having the biggest national network and which is chosen the Most Successful National Network this year. The principles of human rights, labor, environment and anti-corruption have been gaining more importance and internalized with the support and interest of the business world, media, academy and government. With the United Nations Global Compact forming the essentials of Kibar Group, we protect the rights of our stakeholders in every business processes we conduct and we place the international human rights liabilities as the foundation of the employment value we create in our country. We work with our all stakeholders against the abuse of rights. In this period of time when our mission, vision and values are reformed, we plan the active participation of our employees and suppliers in the group objectives. Within this context, we established various mechanisms in our all manufacturing plants and we start with our employees, our privileged stakeholders, in terms of the value we add to the society. We take as a duty to protect the employment added value we create in our country from discrimination, bribery and corruption. We are proud of the internal culture created by our brand value and the social investments performed traditionally since our foundation. Within the order in which the business world is evolved with globalization, the environmental sustainability has now central importance. As Kibar Group, we started our sustainability journey by being the leader of the energy efficiency projects per- formed in industry in Turkey. Today, we are proud of having realized some of our objectives within Group. We believe that we have successfully brought our environmental responsibility to the present day with our various innovative products and quality certificates the examples of which we can frequently see when we look at the past. As of today, the environmental standards set by the Global Principles will contribute us to set out new objectives in environmental protection. We wish to create persistent values while fulfilling our corporate responsibilities by being aware of the fact that the society and the environment are an inseparable. We have contributed to the industries to which we deliver services and to our suppliers within our value chain by being a locomotive with the innovations we made in the industries where we manufacture in the direction of our values. Today, we work with our best for the future with the self-confidence vested in us by our history. I kindly thank all my colleagues who provided support with their valuable contributions in the preparation of the first sustainability report of Kibar Group. I believe that Kibar Group’s sustainability studies will grow by being developed with the precious contributions of our all stakeholders. Best regards, Tamer Saka CEO KİBAR HOLDİNG 5 KİBAR GROUP AT A GLANCE Kibar Group has been one of the most important groups of Turkey with its contributions KİBAR to the country’s economy and communal living since 1972. Thanks to its innovative structure and its commitment to the corporate values, Kibar Group contributes to the sustainable development objectives of Turkey. It creates important values with its GROUP production capacity, employment its supplies, its exportation and its investments in “To do the best and to be society. the best in the fields we are Operating in metal, automotive, packaging, construction materials, real estate, active is always our first objective.” logistics, energy, food and service industries, Kibar Group has 22 companies within Asım KİBAR its body.

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