Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Reduced CO2 emissions (though exact figures are not consistently reported and methodology changed year-over-year, with a reported 47,781 tons of CO2e in 2009)
• Launched Green Auto Loan program in 2009 for hybrid vehicles
• Implemented energy-efficient technologies in branches (low-energy lighting, light sensors, motion detectors)
• Consolidated printing operations and increased use of double-sided printing
• Improved data center energy efficiency through server virtualization
• Developed a LEED Gold-certified data center (planned for 2013)

Social Achievements

• Supported women entrepreneurs through competitions, gatherings, and training programs
• Launched the Teachers Academy Foundation to support 100,000 teachers
• Provided scholarships for female students through the "Baba Beni Okula Gönder" project
• Supported community development through various projects (e.g., "Elim Sende" kindergarten renovation)
• Established the "Gönüllü Yoncalar" (Volunteer Clovers) employee volunteer club

Governance Achievements

• Established an Environment Committee to oversee sustainability efforts
• Developed a Sustainability Team and an Environmental Impact Assessment Team
• Implemented a process for assessing environmental and social impacts of financed projects (planned for completion in 2011)

Climate Goals & Targets

Environmental Challenges

• Increasing energy usage due to branch expansion
• Difficulty in obtaining competitively priced renewable energy
• Data quality challenges in calculating emissions
• Indirect impacts from lending programs

Mitigation Strategies

• Implementing energy-efficient technologies and behaviors
• Developing a more robust data collection and reporting system
• Establishing corporate policies, procedures, and guidelines for assessing environmental and social impacts of financed projects

Supply Chain Management

Responsible Procurement

• Setting environmental management system requirements for new suppliers

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: CDP, Greenhouse Gas Protocol

Sustainable Products & Innovation

• Environmentally Friendly Bonus Card

Awards & Recognition

• First prize in "Corporate Social Responsibility Program" category at the European Excellence Awards 2010
• First prize in "Corporate Social Responsibility" category at The Stevies International Business Awards
• Second prize in "Corporate Social Responsibility Program of the Year in Europe" category at The Stevies International Business Awards
• WWF Gold Panda Award (twice)

Environmental Metrics

ESG Focus Areas

• Corporate Governance
• Customers
• Human Resources
• Environment
• Social Responsibility

Environmental Achievements

• Reduced the ratio of CO2-equivalent emissions over total assets by 10.8% by the end of 2011.
• Reduced greenhouse gas emissions by 1.3 million tons of CO2 equivalent by June 2012 from operational renewable energy projects.
• Achieved ISO 14001 certification for its Environmental Management System in October 2012.
• Received the “2012 Turkey - Carbon Performance Leadership” award from the Carbon Disclosure Project.

Social Achievements

• Reached 67,065 teachers in 61 cities through the “Öğretmenin Sınırı Yok” (No Limits in Teaching) project.
• Provided TL 475 million in loans since 2006 within the scope of Support for Women Entrepreneurs Package.
• Restructured the Garanti Contemporary Arts Centre, Osmanlı Bank Museum and Garanti Gallery under the “SALT” name.

Governance Achievements

• Established a Sustainability Committee in 2010.
• Established a full-time Sustainability Team in 2012.
• Implemented Environmental and Social Loan Policies in 2011.

Climate Goals & Targets

Environmental Challenges

• Increasing global challenges related to scarce resources and a growing population.
• Climate change and its impact on operating costs and legal frameworks.
• Data collection constraints in 2010 and increased fuel consumption due to extreme cold in winter 2011.

Mitigation Strategies

• Systematic restructuring of loan assessment process since 2010.
• Intensive efforts to reduce carbon footprint, including reporting to the Carbon Disclosure Project.
• Implementation of resource-saving measures at service points.
• Construction of a new technology campus according to LEED criteria.
• Development of an Environmental Management System.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Inclusion of articles in supplier contracts requiring full compliance with the EMS.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme cold weather impacting fuel consumption.

Transition Risks

• Rising operating costs, uncertainty surrounding legal frameworks.

Opportunities

• Addressing changing customer expectations, meeting financing needs of green investments.

Reporting Standards

Frameworks Used: GRI

Certifications: ISO 14001

Third-party Assurance: Not disclosed

Sustainable Products & Innovation

• Environmentally Friendly Bonus Card
• Student Account
• Savings Account
• Spend and Save Account
• Net Account

Awards & Recognition

• 2012 Turkey - Carbon Performance Leadership award from CDP
• Golden Panda award from WWF (2008)

Environmental Metrics

ESG Focus Areas

• Environmental impact of operations
• Sustainable finance
• Communities
• Human Resources
• Corporate Sustainability Governance
• Stakeholders

Environmental Achievements

• Reduced CO2 emissions intensity by 23.1%
• 67% increase in waste recycling
• 50% of employees working in ISO14001 certified buildings
• 4 million kWh annual electricity savings achieved compared to physical servers through server virtualization
• New air-conditioning units, saving estimated 963,531 kWh of energy in 2013
• 260 service points certified to ISO 14001

Social Achievements

• 90 meetings organized in 64 provinces with nearly 28,000 SMEs
• Loans provided to women entrepreneurs reached TL 1.9 billion
• 497 women in 6 cities received certificates at Women Entrepreneur Executive School
• 4,209 employees completed distance learning program to better serve disabled customers
• 36 disabled-friendly branches, 98 orthopedically disabled friendly ATMs and 26 visually disabled friendly ATMs

Governance Achievements

• New sustainability strategy and policy approved
• Sustainability Committee restructured with 7 working groups
• 316 Sustainability Representatives received Environmental Management System auditor certificate
• Implementation of Basel II Criteria
• Environmental and Social Loan Policies implemented
• Environmental and Social Impact Assessment (ESIA) System established

Climate Goals & Targets

Environmental Challenges

• Global economic uncertainties
• Lack of a publicly available Human Rights Policy
• Lack of a Responsible Investment Strategy
• Need for robust Scope 1 and 2 GHG emissions data
• Lack of efficiency in Sustainability Governance across the Bank

Mitigation Strategies

• Developed a comprehensive policy governing its sustainability approach
• Developed its Human Rights Declaration
• Started to support its subsidiaries in developing their own ESG policies and risk management systems
• Got its 2013 Scope 1 and 2 GHG Emissions assured by KPMG
• Restructured the Bank’s Sustainability Committee

Supply Chain Management

Responsible Procurement

• Inclusion of a requirement for compliance to Garanti Bank’s Environmental Management System in supplier contracts

Climate-Related Risks & Opportunities

Opportunities

• Financing of renewable energy projects

Reporting Standards

Frameworks Used: GRI G4

Certifications: ISO 14001, IIP Gold Certificate

Third-party Assurance: KPMG (limited assurance for Scope 1 and 2 GHG emissions)

Sustainable Products & Innovation

• Loan product for PV systems
• Ekin Card/Ekin Account for farmers

Awards & Recognition

• Best Bank for Sustainability in 2013 (World Finance)
• Best Bank for Sustainability - Europe in 2013 (IAIR)
• Sustainability Award for Environmental and Social Performance (EBRD)

Environmental Metrics

ESG Focus Areas

• Customers through Sustainable Finance
• Managing Environmental Impact of Operations
• Stakeholders
• Communities
• Human Resources
• Corporate Sustainability Governance

Environmental Achievements

• Increased the number of facilities covered by its Environmental Management System (EMS) to 1,013, covering 100% of its employees.
• 32% increase in amount of waste sent to recycling.
• 34% share in Turkey’s total operational installed wind power capacity
• Total loans provided to renewable energy investments since 2006 exceeded US Dollar 4 billion.

Social Achievements

• 6,662 people attended the Women Entrepreneurship Meetings, which have been held in 31 provinces since 2008.
• Provided 2.8 billion TL loans to women entrepreneurs by the end of 2015.
• Share of women employees was retained at 57%.
• 300 women received certificates in 5 provinces within the scope of the Women Entrepreneurs Executive School.
• Continued its support for disabled customers with 150 disabled-friendly branches, 33 orthopedically impaired-friendly ATMs, 422 visually impaired-friendly ATMs, 147 visually and orthopedically impaired-friendly ATMs and 11,721 employees who completed disability-friendly training.
• Organized 100 meetings in 68 provinces with nearly 31,000 SMEs with Garanti Anatolian Meetings.

Governance Achievements

• The only Turkish company to be selected for the Dow Jones Sustainability Emerging Markets Index.
• First bank in Turkey to sign the United Nations Global Compact’s (UNGC) Business Leadership Criteria on Carbon Leadership.
• The only Turkish company that was included in the CDP Global Leaders Report by being selected to the highest performance band (A) and was awarded with the CDP 2015 Climate Performance Leadership award.
• First Turkish bank to join the “Caring for Climate” (C4C) initiative, which supports the stance of the business world against climate change.
• First Turkish bank to become a member of “WeConnect International”, a global initiative, which is aimed at including women entrepreneurs in the supply chain.
• Obtained limited assurance for its water consumption, energy consumption, renewable energy portfolio and Environmental and Social Impact Assessment Process (ESIAP) for the first time for GRI G4 Comprehensive Sustainability Reporting, in addition to Scope 1 and Scope 2 greenhouse gas (GHG) emissions.
• Successfully qualified for the second year in a row for the Borsa Istanbul (BIST) Sustainability Index as 1 of the 29 Turkish companies that qualified.
• Published its Climate Change Position Statement & Action Plan
• Established the Woman Steering Committee to empower women socially and economically.

Climate Goals & Targets

Environmental Challenges

• Global market challenges including the FED’s rate hike decision, increased turmoil in Syria, growth pressure on developed economies, an economic slowdown in China and the plunging price of oil.
• Rising uncertainty in Turkey’s banking sector due to two elections and uncertainty in global markets.
• Fierce competition in TL deposits.
• Climate change impacts on water resources and agricultural activities.

Mitigation Strategies

• Leveraging its dynamic business model and innovative technology to deliver high profitability ratios.
• Strengthening its position as the leading private bank in consumer loans.
• Expanding its demand deposit base by 20%.
• Implementing its Environmental and Social Impact Assessment Process in financing activities.
• Prioritizing financing of renewable energy investments (total loans exceeding US$ 4 billion by the end of 2015).
• Launching a new loan product for financing efficient agricultural irrigation systems.
• Supporting the CDP Water Program in Turkey to increase awareness of water scarcity.

Supply Chain Management

Responsible Procurement

• Inclusion of a binding provision concerning full compliance with Garanti Bank’s EMS in supplier contracts.

Climate-Related Risks & Opportunities

Physical Risks

• Climate change impacts on water resources and agricultural activities.

Transition Risks

• Regulatory changes, market shifts

Opportunities

• Development of energy-efficient products and services; financing of renewable energy projects.

Reporting Standards

Frameworks Used: GRI G4

Certifications: ISO 14001

Third-party Assurance: KPMG

Sustainable Products & Innovation

• Agricultural Irrigation Systems Loan
• Loans for PV systems

Awards & Recognition

• Dow Jones Sustainability Emerging Markets Index
• CDP 2015 Climate Performance Leadership award
• CDP Turkey 2015 Climate Disclosure Leadership award
• Bank of the Year Award-Turkey in Sustainability category from ACQ Global Awards 2015
• National Champion at European Business Awards in Environmental & Corporate Sustainability
• Most Ethical Company Award at Turkey Ethics Awards
• Corporate Transparency Award from Transparency International
• IIP Gold standard

Environmental Metrics

ESG Focus Areas

• Climate Change
• Inclusive Growth

Environmental Achievements

• Reduced overall scope 1&2 CO2 emissions by 75% compared to 2015
• 100% of the energy contracted by BBVA is renewable
• Reduced its emissions from its operations by 75% at the end of 2020, becoming carbon neutral by purchasing carbon credits.

Social Achievements

• Investment in community programs exceeded TL 71 million and reached over 1.1 million people in 2022.
• Support program for women entrepreneurs has been run since 2006.

Governance Achievements

• Improved sustainability governance in 2022, adopting a more responsible and effective business model with a new team structure.
• Added sustainability matters in the premium eligibility criteria of all employees at any level, starting with the Board of Directors.

Climate Goals & Targets

Environmental Challenges

• Financing of clients without transition strategies towards a low-carbon economy
• GHG emissions resulting from the Bank’s portfolio, from providing finance to carbon–intensive clients
• Negative environmental impacts of the portfolio due to the financing of highly polluting or low-recyclable clients
• Lack or difficulty of access to financial services due to location, rural etc.
• Lack of access to finance and financial services for disadvantaged social groups

Mitigation Strategies

• Application of the Bank’s sustainable finance approach in its lending practices according to the Environmental and Social Loan Policy, supporting low-carbon clients
• Reduction in the generation of waste through management and circular economy measures
• Reduction in resource consumption in water, energy sources and paper through management and efficiency measures
• Investment in forestation through carbon offset projects
• Provision of access to financial services through digital banking services
• Development of financial services and products for disadvantaged social groups
• Programs for financial education and reducing inequalities in the society
• Promotion of organizations for scaling social impact through building of partnerships

Supply Chain Management

Responsible Procurement

• Sustainability training for suppliers

Climate-Related Risks & Opportunities

Transition Risks

• Risks in sectors incompatible with the Paris Agreement

Opportunities

• Developing sustainable solutions under 5 growth levers

Reporting Standards

Frameworks Used: GRI Standards, TCFD, UN Global Compact

Third-party Assurance: Güney Bağımsız Denetim ve SMMM A.Ş. (Ernst & Young)

UN Sustainable Development Goals

• All 17 SDGs

Garanti BBVA actively contributes to 17 goals within the scope of Sustainable Development Goals.

Sustainable Products & Innovation

• Green and social products and services
• Sustainability-linked loans
• Green mortgages
• Rooftop PV loans

Environmental Metrics

ESG Focus Areas

• Combating the climate crisis
• Promoting inclusive growth

Environmental Achievements

• Commitment not to finance new investments in coal plants and coal mines and to zero risks associated with coal activities in the portfolio by 2040 at the latest
• Announced mid-term decarbonization goals aligned with the Paris Agreement
• Reduced carbon intensity by 98% since 2012
• Achieved 39% renewable energy share in energy production
• Blue Breath Project recycled approximately 200.071 tons of waste

Social Achievements

• Launched Unbanked Women Program
• Women Entrepreneurs Program ongoing for 17 years
• Total applications to Türkiye’s Woman Entrepreneur Competition approached 45 thousand
• Türkiye Women Entreprenur Academy reached nearly 350 women in 2023
• Main supporter of CDP-Türkiye

Governance Achievements

• High compliance with the Capital Market Board’s Corporate Governance Principle with a Corporate Governance Rating of 9.81
• Included in 9 sustainability indices
• The only Turkish bank to be included in the Bloomberg Gender Equality Index for 7 consecutive years

Climate Goals & Targets

Environmental Challenges

• Devastating earthquake in February
• Global struggles with high inflation and economic uncertainties
• High inflation and its economic and social effects
• Tight monetary policies
• Geopolitical uncertainties
• Fluctuation in the Chinese economy
• Climate crisis induced stress factors on food security and natural resources
• Geopolitical conflicts
• High reliance on cereal imports
• High unemployment rate and lower labor force participation among women

Mitigation Strategies

• Various contributions and assistance in meeting the needs in earthquake-affected areas
• Strengthened balance sheet with prudent policies and high provisioning strategy
• Accelerated customer acquisition
• Sustained Turkish lira focus in balance sheet management
• Prudent approach to risk management
• Accelerated customer acquisition trend
• Deepening relationships with existing customers
• Liraization of the economy and selective credit expansion
• Accelerated transition to standard TL deposits
• Prudent fiscal policy
• Monetary tightening
• Macroprudential measures
• Regulations to encourage the transition to standard TL time deposits
• Continuous update of security measures
• Investing in artificial intelligence technologies
• Expanding the scope of collaborations
• Sustainable Future in Exports program

Supply Chain Management

Responsible Procurement

• Fair hiring
• Control of suppliers and working conditions of their workers
• Sustainability requirements

Climate-Related Risks & Opportunities

Physical Risks

• Storms
• Floods
• Heatwaves
• Wildfires
• Water stress

Transition Risks

• Regulatory changes
• Market shifts
• Lack of adaptation of financial products to the effects of climate change

Opportunities

• Financing of new activities linked to the energy transition
• Financing of sustainable activities without pollution controversies

Reporting Standards

Frameworks Used: GRI Standards, TCFD, UNGC, WEPs

Certifications: ISO 14001, ISO 22301, LEED Platinum

Third-party Assurance: Ernst & Young

UN Sustainable Development Goals

• Goal 1
• Goal 2
• Goal 3
• Goal 4
• Goal 5
• Goal 6
• Goal 7
• Goal 8
• Goal 9
• Goal 10
• Goal 11
• Goal 12
• Goal 13
• Goal 14
• Goal 15
• Goal 16
• Goal 17

Garanti BBVA contributes to all 17 Sustainable Development Goals and 70 targets.

Sustainable Products & Innovation

• Green Mortgage Loans
• Green Loans
• Social Loans

Awards & Recognition

• Stevie award for Investor Relations website
• Four international awards for 2022 Integrated Annual Report
• Highest score among the banks reporting from Türkiye in the Emerging Markets category of the Dow Jones Sustainability Index