Sustainable and Responsible Finance

Since our establishment, we have been supporting the sustainable development of our country and the socio-economic development of various layers of society with sustainable financing products. We also consider following the social and environmental impacts of the projects we finance under the responsible banking approach.

Sustainable products and services are one of the essential components of our sustainability approach. Our biggest impact is comprised by the way of financing in environmental and social areas. Therefore, we strive to develop products which decrease these impacts and contribute to sustainability. Minding the each part of the society, we offer products to our customers’ use in order to support the socio-economic development. This way, we both ensure the empowerment of our customers and promote social development with the support we provide for various groups including local governments, SMEs, women entrepreneurs and agricultural sector employees. Our efforts also include financing renewable energy investments.

You can access the details about the sustainable products and services through our Integrated Annual Report.

Responsible financing is at the core of our mission to contribute to our society and the environment. We see it as our responsibility to assess the environmental and social impacts of the projects we finance, and we aim to create positive and lasting effects through these projects.

We also take into consideration the indirect environmental and social impacts of the projects we finance. In this context, we adopt both national legislation and international standards such as the IFC Performance Standards (IFC PS) and the Equator Principles (EP) to assess potential environmental, social, and governance risks and impacts through our Environmental and Social Risk Management System (ESMS). As a priority in ESMS implementation, we diligently ensure that the project under evaluation is not included in our Bank’s List of Non-Financeable Activities. You can reach the full list of activities not financed by VakıfBank via the link to the VakıfBank’s Exclusion List of Non-Financeable Activities.

In addition, the title of Environmental and Social Impact Assessment and Sustainability has been added to the Credit Policy Document in order to integrate environmental and social responsibility into our financing processes. In this way, we prioritize environmentally friendly projects, energy efficiency, and renewable energy investments in our lending activities. Before financing, we require documents proving compliance with relevant environmental standards. In addition to environmental requirements, we expect the projects to comply with international social criteria, including respect for employee and human rights, ethical values, the prohibition of child labour and forced labour.

As part of our responsible financing approach, in December 2022, we launched the ESMS for project finance loans of USD 20 million and above to evaluate ESG risks and occupational health and safety (OHS) risks and their potential impacts. As of August 2025, we expanded the scope of the system to include projects with investment amounts of USD 10 million and above, thereby enabling systematic environmental and social risk assessment across a broader credit portfolio. Since the beginning of 2023, we have carried out ESMS assessments on 70 projects. Through this system, we aim to manage risks proactively and in accordance with international standards, supporting sustainable finance for the benefit of our Bank, society, and the environment.

As VakıfBank, we apply the ESMS not only in project finance but also in financing provided by international financial institutions. These include the World Bank, European Investment Bank (EIB), Asian Development Bank (ADB) among others, as well as in products such as cash management. BY utilizing project-specific risk assessment tools, we integrate sustainability principles into all of our financing processes and manage environmental and social risks with due diligence. This approach supports the environmental and social responsibility of the companies we finance and ensures that our Bank continues to provide financing in a responsible manner.

World Bank Pandemic Support Loan (SADEK)

In 2020, our Bank signed a Pandemic Support Loan (SADEK) agreement with an amount of USD 250 million with the World Bank, aiming to finance the expenditures of SMEs, commercial, retail, and corporate firms that were negatively affected by the COVID-19 pandemic and to help them adapt to the changes in their enterprise models/environments caused by the pandemic.

The Pandemic Support Package provided to enterprises included two loan components (SADEK)-1 and (SADEK)-2, each with distinct target groups are;

SADEK-1,

Women-owned Enterprises,
Young Enterprises (enterprises that are less than five years old),
Enterprises in Developing Regions (those operating in designated underdeveloped areas),
Earthquake-Affected Enterprises (those operating in the cities of Adana, Adıyaman, Diyarbakır, Elazığ, Hatay, Gaziantep, Kahramanmaraş, Kilis, Malatya, Osmaniye, and Şanlıurfa),
Other Enterprises (those not falling under the four categories above but meeting the criteria of a turnover decline of 7.5% or more)

SADEK-2,

Enterprises that have taken or plan to take various health and safety measures to adapt to pandemic conditions, and/or have developed or intend to develop digital and innovative solutions in line with the new conditions.

The program aimed to finance a portfolio of at least 1,000 unique clients. SADEK has been designed as a financing product that supports sustainability and enhances the resilience of companies.

World Bank Pandemic Support Loan (SADEK)