The SKDM (Border Carbon Adjustment Mechanism) is a carbon emission management mechanism introduced by the European Union (EU) to reduce the risk of carbon leakage for EU-based importers. It aims to reduce greenhouse gas emissions within the EU and prevent carbon leakage that the EU has been addressing for a long time.

SKDM emissions account for both direct emissions and indirect emissions from the production of electricity used in the manufacturing process. This aims to assess the emissions of products more comprehensively. SKDM includes the calculation of embedded emissions in products, based on a cradle-to-gate approach.

To explain this concept, it is the measure of the environmental harm caused by human activities in terms of CO₂ emitted, divided into two main components: direct footprint and indirect footprint. The direct footprint includes CO₂ emissions from the burning of fossil fuels, including residential energy consumption and transportation. The indirect footprint includes CO₂ emissions related to the production and eventual disposal of products used throughout their lifecycle.

Why is this important to us? Since 2023, the European Union (EU) has implemented a Border Carbon Adjustment Mechanism (CBAM). This tax is calculated based on the greenhouse gas emissions released during the production of certain products imported into the EU. The first phase of SKDM covers six major sectors with a risk of carbon leakage: cement, steel, aluminum, fertilizers, hydrogen, and electricity. These sectors have significant carbon emissions potential and are therefore the initial targets of SKDM.

The transition period will continue until the end of 2025, during which EU importers will not have to pay any carbon tax. However, they will be required to report the embedded emissions in imported products under SKDM. From 2026 onwards, SKDM will fully come into effect, declarations will be required from customers, and verification of these calculations will be requested.

In summary, we first need to make our carbon footprint measurable and then reduce it. In the second quarter of 2024, some of our customers began questioning this. We acted quickly and consulted various advisory firms, eventually connecting with CarbonGate. Due to our strong existing infrastructure, we began digitalizing these calculations.

Currently, we have calculated and prepared declarations for our Border Carbon Footprint for the first two quarters of 2024. We are proud to announce that we are one of the first companies in our sector to achieve this.

ISO 14064-1 (Corporate Carbon Footprint): For 2023, we have calculated our ISO 14064-1 (Corporate Carbon Footprint), and our report is ready. We believe that our very low values will enhance our strength. We will publish it on our website shortly.

Furthermore, as a company, we aim to plant trees each year equivalent to the amount of carbon we emit. We will start planting our first trees at the beginning of 2025. Our goal is to achieve a net-zero carbon value.

Full automation of an unmanned grinding cell within our company. The goal is to implement an economical and environmentally friendly solution in our company to handle a process that can be harmful to human health if human resources are unavailable or inadequate measures are taken in the grinding industry. Target: 2026

Conversion of all company vehicles, which currently use fossil fuels, to hybrid or fully electric by 2025. Target: 2025

As you know, breakfast is very important, and eggs are among the healthiest foods. Currently, eggs are produced through factory methods. Therefore, we plan to produce organic chicken eggs within our company premises for breakfast. Target: 2025

Solar Power Plant (GES). As mentioned above, due to an independent reason, this investment has been postponed to 2026.

Calculation of ISO 14067. With SKDM values becoming mandatory from 2026, we aim to transition to ISO 14067, which calculates embedded emissions in products, starting from 2026 to gain a competitive advantage in some components.

Expansion of automation in assembly and quality control. Given the rising labor costs compared to cheaper production areas, our main goal is to maintain the current workforce while focusing on automation to achieve double the turnover with the existing staff and maintain our competitiveness. Otherwise, we may face job losses in the coming years due to the increasing difficulty in finding and affording workers. Many companies are already operating at break-even points or relocating to cheaper countries.

Communication and development with suppliers. We will hold at least two supplier days per year, especially focusing on suppliers with no or underdeveloped quality systems. The main aim is to explain our sustainability and Border Carbon Footprint goals and to increase efficiency. Target: First meeting in the fourth quarter of 2024.

Project to enhance the role and value of women in society. Unfortunately, women are not given the necessary value in our country. However, both Islam and Atatürk's principles greatly value women. To integrate women into social life, we will implement positive discrimination in our hiring practices and, starting from the fourth quarter of 2024, will organize various courses for our female employees.

Training of internal staff. Due to difficulties in finding qualified personnel, we aim to provide continuous training for our employees starting from the fourth quarter of 2024. Our goal is to complete their career planning and development within our company and ensure their long-term retention.

Designing green products. There has been no change in metal connection accessories since World War II. However, we plan to obtain products with the same strength using less material through a new material project with our supplier. Initial trials will occur in the last months of 2024 or early 2025.

Implementation of Integrated Management Systems. In addition to the existing ISO 9001 Quality Management System, we will implement ISO 14001 Environmental Management System, ISO 45001 Occupational Health and Safety Management System, and ISO 50001 Energy Management System.

Mission: To produce reliable and economically valuable products by staying one step ahead of customer expectations through innovation and utilizing current technology.

Vision: To be the preferred supplier of products in the formwork and scaffold connection industry and to be the leading institution in new product development and design.

Company Values:

• We recognize and reward individual and team success.
• We share common goals through teamwork.
• We trust and respect each other.
• We openly discuss our expectations from each other.
• We conduct business with uncompromising honesty.
• We are committed to innovation and continuous improvement.
• We fulfill our commitments.
• We design for you.
• Our people are our most valuable asset.

• Honesty: Employees must maintain honesty and open communication in the workplace.
• Teamwork: Members of a professional organization must work together to get the job done.
• Objectivity: Employers should not make career decisions based on personal relationships or favoritism.
• Respect: We must respect others' property, choices, and lives.
• Loyalty: People should prioritize the needs of their family and friends above their own.
• Value of Life: Avoid any actions or practices that put lives at risk.
• Peace: Avoid violence as much as possible.
• Do Not Steal: Do not take things that do not belong to you.
• Sustainable Living: Live in a way that does not waste unsustainable resources.
• Support for the Disadvantaged: Prioritize care for those who are medically or economically disadvantaged.