Responsible Finance

Within the framework of responsible banking, we focus on developing sustainable products, as well as managing the environmental and social impacts of the projects we finance. We focus on managing the environmental and social impacts of the projects we finance. Environmental Impact Assessment (EIA) reports are prepared as prerequisites to identify the negative and positive environmental impacts of all the projects our Bank provides financing, to prevent or minimize any negative effects and to determine the necessary measures. The funding process is initiated after the “EIA positive” or “EIA is not required” decisions are made.

We continue to work on our environmental and social impact assessment system. In 2017, the Corporate Loans Department updated the Credit Policy Document by adding the title of Environmental and Social Impact Assessment and Sustainability. In this context:

  • We prioritize eco-friendly, energy efficiency and renewable energy projects for project financing,
  • In regard of the financed project, we ask the project company for documents that should be provided for the environmental standards.
  • We do not finance investment projects, apart from weapons production projects that are subsidized or supported by the public.
  • In the project loans in which our bank provides co-financing with other banks, we carry out environmental and social impact assessment criteria along with the other banks participated in the syndication.

In the scope of the project we fund, we work in collaboration with international financial institutions such as The World Bank, the European Bank for Reconstruction and Development (EBRD), the European Investment Bank (EIB), and German Development Bank (KfW). Within the framework of the projects, it is expected that the companies using these loans must have no activities in prohibited sectors; must not employ child labor; must have no negative impact on the environment, must not participate in operations ethically and morally inappropriate or prohibited by national laws. Besides, we do not fund particular sectors. We assess the impact of the projects and fund the ones that meet these criteria.

In the case that it is required, we acquire additional consulting services from companies specializing in environmental and social impact assessments. Specified matters in the consultancy reports can be included in the loan contracts if deemed necessary, and they stand as commitments for the project companies to implement. Projects are monitored during the investment and operation periods, and the project related environmental and social impact assessments and related commitments are inspected.

In the upcoming years, we are going to continue our efforts to develop our policies and system and to provide financing for sustainable projects

Sustainable Products and Services

Sustainable products and services are among the key components of our sustainability approach. In the environmental and societal context, we make our largest impact with the products and financing we provide. Within this approach, we are working to develop products that contribute to sustainability by minimizing the effects of financing. Providing support for renewable energy, SMEs, women entrepreneurs, contribution to local administrations, and agricultural banking are among the areas we embrace in this context.

Moreover, fundings with a reasonable cost from international institutions are achieved to prevent greenhouse gas emissions, to decrease fossil fuel usage and to reduce the energy costs. In 2010, energy efficiency and renewable energy investments of Small and Medium Size Enterprises were financed up to 100% of total amount by means of TurSEFF I (Turkey Sustainable Energy Financing Facility) provided by European Bank for Reconstruction and Development (EBRD).

We are expanding our product range within the framework of the New Product Development directive, by taking into account the needs of our customers and the strategies of the Bank. We assess new product and service proposals on criteria such as benefit and cost, implementation steps, risks, compliance with regulations and traceability, and present the appropriate ones for approval.

For details regarding sustainable products and services you can check Sustainability Reports.