Dear Stakeholders,
The global economy is navigating a challenging period characterized by modest growth, tight financial conditions, geopolitical tensions, and the restructuring of global supply chains. Volatility in energy prices, uncertainties surrounding trade corridors, and mounting cost pressures require industrial companies to manage operational continuity, supply security, and investment decisions with greater discipline and foresight.
Against this backdrop in 2025, we focused on translating our initiatives in operational efficiency, quality, digitalization, and sustainability into tangible business outcomes, while maintaining financial discipline and honoring our commitments to our customers. Across our Group companies, we continued to strengthen our integrated management approach through continuous improvement and transformation initiatives spanning production and service processes, enhancing decision-making speed, cost discipline, and execution capabilities across our operations.
Our performance during the reporting period was underpinned by effective risk management, a focus on operational excellence, initiatives that enhance energy and resource efficiency, our commitment to the low-carbon transition, our innovation capabilities, our talented workforce, and our strong governance framework.
For us, sustainability is not only a long-term value creation model that delivers lasting economic, social, and environmental value, but also a strategic management framework that guides our corporate decision-making. In line with this approach, in 2025 we updated our sustainability strategy with a 2030 perspective and launched our Green Transformation Action Plan for the 2025–2035 period.
Our 2030 Sustainability Strategy encompasses 34 targets and 92 performance indicators aligned with our priority sustainability topics. Our Green Transformation Action Plan, in turn, comprises 14 targets and 93 actions defined across the areas of climate, resource efficiency, finance, human capital, supply chain, and institutional capacity.
During the 2025 reporting period, we updated our Double Materiality Assessment using a more structured approach, drawing on the methodological framework of the European Sustainability Reporting Standards (ESRS) issued under the Corporate Sustainability Reporting Directive (CSRD). This enabled us to assess the impacts of our activities on people, the environment, and society, as well as the implications of sustainability matters for our business model, financial performance, and risk and opportunity profile, in a more transparent, comparable, and decision-useful manner.
We reinforced our sustainable growth objectives through strategic investments that strengthened our position in global markets and through our strong export performance. The acquisition of an aluminum foil manufacturing facility in the United States and the establishment of a new production facility in the United Kingdom were among our strategic investments, reinforcing our international presence, enhancing the resilience of our supply chain, and supporting our long-term growth objectives.
While sustaining our growth momentum during the reporting period, we maintained our strong presence in international markets through our extensive export network. Kibar Dış Ticaret ranked 4th among Türkiye’s top exporters and 1st in the “Ferrous and Non-Ferrous Metals” category in the Turkish Exporters’ Assembly’s Top 1,000 Exporters list. The combined sales revenue of our Group companies increased by 29% year-on-year in 2025.
In line with our commitment to achieving net zero emissions by 2050, we pursue a holistic approach to advancing energy efficiency, renewable energy, greenhouse gas emissions management, resource efficiency, and the development of low-carbon products. We calculate the Scope 1 and Scope 2 greenhouse gas emissions of the companies included in our reporting scope and, since 2020, have obtained independent assurance for our emissions data in accordance with the International Standard on Assurance Engagements (ISAE) 3410. We prioritize the development of our data and calculation infrastructure to enable the systematic monitoring and reporting of value chain emissions, including Scope 3 emissions.
Renewable energy generation is one of the key pillars of our low-carbon transition strategy. We continue to generate electricity from our renewable energy power plants while expanding our investment capacity in this area.
In line with our focus on resource efficiency and the circular economy, we continue to improve our performance across processes spanning from raw material use to waste management. In 2025, 30.8% of the raw materials we used were sourced from recycled materials, while our waste recovery rate reached 97.8%.
As part of our biodiversity conservation strategy, we completed projects in collaboration with Kocaeli University to conserve, propagate, and reintroduce the endangered species the European bluestar (Amsonia orientalis), the sand lily (Pancratium maritimum), the Riva mullein (Verbascum bugulifolium), and the Kilyos button (Centaurea kilaea) into their natural habitats. In 2025, under the same collaboration, we launched a project to reintroduce Cirsium byzantinum into its natural habitat.
We conduct our R&D and innovation activities with a focus on developing products, technologies, and processes that support the green transition, enhance resource efficiency, and respond to the evolving needs of our customers. In line with this approach, we develop products and process solutions that support the low-carbon transition, align with the principles of the circular economy, and enhance environmental performance.
At Assan Alüminyum, we are advancing alloy development initiatives that enable the more efficient use of scrap and secondary aluminum in our production processes, supporting solutions to reduce both primary aluminum consumption and the carbon footprint of our products. At Assan Hanil, we develop product designs through weight-reduction-focused R&D initiatives that enhance vehicle energy efficiency and support the transition to low-carbon mobility. At Assan Panel, we offer solar roof panel systems designed for on-site electricity generation from solar energy, along with natural daylighting solutions that maximize the use of daylight in buildings. At İspak, we are expanding our portfolio of next-generation packaging solutions that are recyclable, compostable, and resource-efficient, enabling us to meet our customers’ evolving sustainable packaging needs.
In 2025, we enhanced the Kibar Holding Sustainability Information Management System, which we established to collect, analyze, query, and report sustainability data digitally, by integrating an ESG dashboard infrastructure. This enabled us to monitor our environmental, social, and governance (ESG) performance indicators in a more centralized, comparable, and visually intuitive manner. The dashboard enables sustainability data to be used more effectively not only during reporting periods but also in management and decision-making processes. In this way, we strengthened our institutional capacity for data governance, performance monitoring, and the tracking of our sustainability targets.
In the area of digitalization, we continued to strengthen our capabilities in data-driven decision-making and process automation across a wide range of functions, from manufacturing and human resources to finance and reporting. By bringing more than 200 processes under Robotic Process Automation (RPA), we now manage an average of 100,000 minutes of repetitive work each month through software robots. As a result, we made significant progress in building scalable, measurable, and sustainable operational capabilities as part of our digital transformation journey.
Through the K-Star Supplier Sustainability Program, we systematically address environmental, social, governance, and change management topics across our supply chain within a structured and traceable framework, while monitoring our suppliers’ sustainability maturity levels, development areas, and progress on action plans through a digital platform. Through the K-Star Rise digital learning platform, launched in 2025, we support this framework through training and capacity-building initiatives, with the aim of fostering a shared approach to sustainability across our supplier ecosystem.
We believe that the value we create extends beyond economic outcomes and is also defined by the long-term relationships we build with society. Guided by this belief, we continued our efforts in the areas of education, healthcare, community well-being, and volunteering. Through Kibar Volunteers, we have reached 11,750 children to date. In addition, through our support for UNICEF’s Girls of Tomorrow: Future Leaders program, we contributed to the education of 500 girls in 2025.
In line with our principles of transparency and accountability, we are pleased to present our 13th Sustainability Report to our stakeholders. Prepared in accordance with the Global Reporting Initiative (GRI) Standards, this report also references the principles and frameworks of the United Nations Global Compact (UNGC), the Women’s Empowerment Principles (WEPs), the World Economic Forum’s Stakeholder Capitalism Metrics, and the Task Force on Climate-related Financial Disclosures (TCFD).
Our environmental, social, and governance (ESG) indicators were subject to independent assurance in accordance with the International Standard on Assurance Engagements (ISAE) 3000, while our greenhouse gas statements were independently assured in accordance with the International Standard on Assurance Engagements (ISAE) 3410, Assurance Engagements on Greenhouse Gas Statements.
Our 2024 Kibar Holding Sustainability Report received four awards across three international platforms. It received the Platinum Award in the “Sustainability Report” category at the Global Communications Competition 2025 Spotlight Awards, organized by the League of American Communications Professionals (LACP). The Report also received the Gold Award in the “Annual Report” category at the Global Communications Competition 2025 Spotlight Awards. Kibar Holding’s Annual Report received the Gold Award for the second consecutive year at the International Annual Report Design Awards (IADA). It also received the Bronze Award in the “Annual Report” category at the Stevie Awards.
I would like to extend my sincere thanks to our employees, customers, suppliers, business partners, and all our stakeholders. In the period ahead, we will continue to create long-term value for the Kibar Group and all our stakeholders through our operational discipline, innovation capabilities, and commitment to responsible growth.
Haluk Kayabaşı
CEO