Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance
• Economic

Environmental Achievements

• Reduced paper use by 7% compared to 2009.
• Implemented energy-saving measures in buildings, resulting in projected savings of 30% electricity and 14% natural gas.
• Achieved an 81-point score in the CDP 2010 Global 500 report.

Social Achievements

• Launched the "For You" campaign to improve customer relations.
• Increased the number of SME customers to approximately 134,000.
• Implemented Akbank Environmental and Social Policies for project finance loans exceeding USD 50 million and with a term of over five years.
• Provided various training programs for employees, totaling 993,004 hours.

Governance Achievements

• Established a Corporate Governance and Social Responsibility Committee (CGSRC).
• Became the first Turkish bank to publish a UN Global Compact Communication on Progress report.
• Became the first Turkish deposit bank to publish a Sustainability Report in accordance with GRI standards.
• Maintained high financial strength and baseline credit assessments from international rating agencies.

Climate Goals & Targets

Environmental Challenges

• Increase in greenhouse gas emissions.
• Managing risks associated with climate change.
• Ensuring compliance with environmental laws and regulations.
• Reducing paper consumption.

Mitigation Strategies

• Implemented various activities and practices to reduce environmental effects from operations.
• Offered loan opportunities for energy efficiency and renewable energy financing to customers.
• Sponsored the Carbon Disclosure Project (CDP) in Turkey.
• Implemented the "Branch Without Paper" project.
• Used virtualization technology to reduce energy consumption at the Data Center.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Integrating environmental and social elements into purchasing processes.
• Requiring suppliers to comply with UN Global Compact principles.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Development of energy-efficient products and services.

Reporting Standards

Frameworks Used: GRI G3 Guidelines

Certifications: ISO 10002 (Customer Complaint Management)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Akbank Energy-Friendly Loans
• Axess Business credit card

Awards & Recognition

• Best Bank in Turkey (Global Finance)
• Best Private Bank of Turkey (Euromoney)
• Best Bank in Turkey (EMEA Finance)

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance
• Economic

Environmental Achievements

• Reduced electricity consumption despite a 14% branch increase and IT infrastructure improvements.
• Achieved a 19% decrease in total carbon emissions generated by electricity consumption.
• Reduced carbon emissions from branches by 28% despite branch growth.
• Saved 12,550 GJ of energy in 2011 through virtualization technology.
• Reduced paper use by 2% compared to 2010.
• Reduced paper consumption per employee to 73 kg from 90 kg in 2009.
• Saved approximately 267 tons of paper in 2011 through various saving measures.
• Recycled 300 tons of paper annually at Kınalı Archives Center.

Social Achievements

• Launched Akbank Volunteers system, with 1,489 employees participating in various projects and reaching around 11,250 children and youngsters.
• Improved customer relations, offering innovative products and services.
• Created the “For Us” philosophy for employees, focusing on personal development and sustainability training.
• Implemented a unique and long-lasting training campaign covering all branches, including sustainability training.
• Increased the number of colleagues in branches experienced in loans and risk analysis, including environmental risks.
• Implemented Akbank Social & Environmental Management System (SEMS) for loans.

Governance Achievements

• Updated Akbank’s Ethical Principles.
• Improved public disclosure and transparency.
• Restructured the Investor Relations Division to Investor Relations and Sustainability Division.
• Established the Corporate Governance, Remuneration and Social Responsibility Committee (CGRSRC).
• Implemented an effective risk management system.
• Strengthened compliance with legislation, including measures to prevent money laundering and ensure ethical banking practices.

Climate Goals & Targets

Environmental Challenges

• Climate change risks (physical risks like extreme weather and transition risks like regulatory changes).
• Reputation risks.
• Liquidity risks.
• Credit risks.
• Operational risks.
• Legal risks.
• Market risks.

Mitigation Strategies

• Implemented various risk management strategies and policies to address each of the above challenges.
• Developed alternative sourcing strategies.
• Established an effective internal control system.
• Implemented measures to ensure compliance with legislation.
• Established the Compliance Unit to prevent money laundering and financing of terrorism.
• Implemented information security measures and training programs.
• Established the Business Continuity Management Program.

Supply Chain Management

Supplier Audits: Approximately 40% of suppliers declared commitment to comply with Akbank’s Ethical Principles and Sustainability Policies.

Responsible Procurement

• Akbank’s Ethical Principles and Sustainability Policies.
• Monitoring of supplier processes for social and environmental risks.

Climate-Related Risks & Opportunities

Physical Risks

• Heat waves, floods, droughts, extreme weather conditions

Transition Risks

• Climate change laws and regulations

Opportunities

• Energy efficiency and renewable energy projects

Reporting Standards

Frameworks Used: GRI G3

Certifications: ISO 10002 (Customer Complaint Management)

Third-party Assurance: Not disclosed

Sustainable Products & Innovation

• Akbank Energy-Friendly Loans
• MidSEFF and TurSEFF loans
• IFC Securitization Loan

Awards & Recognition

• Numerous awards received in 2011, including Turkey’s “Most Valuable Banking Brand”.

Environmental Metrics

ESG Focus Areas

• Corporate Governance
• Risk Management and Compliance
• Value Added to Our Customers
• Our Employees
• Our Operations and the Environment
• Our Community Investment
• Climate Change

Environmental Achievements

• Major reductions in carbon emissions from operations due to implemented energy efficiency projects.
• Significant paper savings through e-statement initiatives and other conservation measures (362.7 tons saved).

Social Achievements

• Savings campaign reached 11,500 students with savings training.
• Akbank received FEM certificate in the evaluation conducted based on 22 criteria within the scope of the “Equal Opportunity Model Project”.
• Employees completed 1,020,479 hours of training (8.91 business days per employee).

Governance Achievements

• Akbank joined the Corporate Governance Index.
• Implemented amendments to Articles of Association and board of directors organizations to comply with Corporate Governance Principles.

Climate Goals & Targets

Environmental Challenges

• Climate change risks (extreme weather, regulatory changes).
• Reputation risks.

Mitigation Strategies

• Implementation of energy efficiency projects.
• Development of environmental and social risk management systems for loans.
• Establishment of effective audit mechanisms and awareness trainings for employees to manage reputation risks.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Preference given to suppliers with socially and environmentally responsible systems.
• Supplier declarations committing to UN Global Compact principles.

Climate-Related Risks & Opportunities

Physical Risks

• Heat waves
• Floods
• Droughts
• Extreme weather conditions

Transition Risks

• Climate change laws and regulations

Opportunities

• Energy efficiency and renewable energy projects

Reporting Standards

Frameworks Used: GRI G3, UN Global Compact

Certifications: ISO 10002-2004 (Complaint Management)

Third-party Assurance: Not disclosed

Sustainable Products & Innovation

• Akbank Energy-Friendly Loans
• EkoPOS
• Pay When You Can Loan

Awards & Recognition

• Turkey’s Most Valuable Banking Brand (Brand Finance)
• Best Bank in Turkey (The Banker, Euromoney, World Finance, Global Banking and Finance Review)
• Best Private Banking Services Overall in Turkey (Euromoney)
• Best Foreign Exchange Provider in Turkey (Global Finance)
• Best Bank of the World in Technology & Innovation (The Banker)
• Best Bank in CRM in EMEA/APAC Region (Gartner)
• Most Impressive Emerging Market Financial Institution Borrower (Euroweek)
• Stevie International Business Awards
• World’s Best Annual Report (LACP)
• World’s Best Sustainability Report (LACP)
• Best Annual Report of the Year (MerComm)
• Best Project in Digital and Social Media Communication (TÜHİD)
• Turkey Call Center Awards
• Crystal Apple Awards

Environmental Metrics

ESG Focus Areas

• Corporate Governance
• Sustainable Profitability and Growth
• Reduction of Carbon Emissions
• Secure Banking
• Customer Satisfaction

Environmental Achievements

• Major reductions in carbon emissions from operations due to implemented energy efficiency projects
• Reduced paper consumption by 418.1 tons in 2014 through various saving practices and e-statement initiatives.
• Recycled 520 tons of paper at Kınalı Archives Center in 2014.

Social Achievements

• Successfully disbursed the entirety of the US$100 million MidSeff credit facility (obtained from the EBRD) to finance medium-scale renewable energy and energy conservation projects in Turkey.
• Launched the “Children: Heroes of the Economy” Project to raise savings awareness among elementary school children, reaching 45,000 children.
• Akbank Direkt Mobile was named the “World’s Best Smartphone App” at the Global Mobile Awards.

Governance Achievements

• Included sustainability in the performance evaluation criteria of team members.
• Akbank became one of only 15 companies included in the Borsa Istanbul (BIST) Sustainability Index.
• Implemented a transparent and flexible Performance Management System.

Climate Goals & Targets

Environmental Challenges

• Climate change risks, including extreme weather events and potential legal/investment costs due to new regulations.
• Need to increase personal savings in Turkey to reduce the current account deficit.
• Managing risks related to information security and potential virtual attacks.

Mitigation Strategies

• Developed a multi-faceted risk management approach encompassing risk management, legal and regulatory compliance, and environmental-social impact analysis.
• Launched a “Savings Campaign” with advantageous products and services and corporate social responsibility projects to raise awareness on savings.
• Implemented various information security measures, conducted awareness surveys, and developed new actions related to business processes.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Supplier Management Policy supporting UN Global Compact principles, prioritizing vendors with environmentally friendly and socially sensitive systems

Climate-Related Risks & Opportunities

Physical Risks

• Heat waves, floods, droughts, extreme weather conditions

Transition Risks

• Climate change laws and regulations

Opportunities

• Renewable energy investments, energy efficiency projects

Reporting Standards

Frameworks Used: GRI G4 Comprehensive, UN Global Compact

Certifications: ISO 10002-2004 Complaint Management

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Akbank Energy-Friendly Loan, other energy efficiency and renewable energy financing products

Awards & Recognition

• Brand Finance “The Most Valuable Banking Brand in Turkey”, Euromoney Best Bank in Turkey, Global Finance Best Bank in Turkey, World Finance Best Bank in Turkey, and many others

Environmental Metrics

ESG Focus Areas

• Corporate Governance
• Sustainable Profitability and Growth
• Reduction of Carbon Emissions
• Secure Banking
• Customer Satisfaction
• Effective Risk Management and Internal Control
• Compliance with Bribery and Corruption Policy
• Ethical Banking
• Employee and Human Rights
• Environmental and Social Risk Management in Lending
• Employee Satisfaction
• Environmentally-friendly Products and Services
• Career Development and Training
• Employee Volunteering
• Employee Awareness
• Innovative Products and Services
• Facilitating Access to Financial Services

Environmental Achievements

• Reduced carbon emissions from operations due to energy efficiency projects.
• Reduced paper consumption by 9.5% by adjusting employee printer settings to double-sided printing.
• Recycled 635 tons of paper at Kınalı Archives Center.

Social Achievements

• Launched Akbank Export Academy in partnership with Sabancı University to enhance the knowledge and skills of SMEs in exports.
• Launched CaseCampus project in partnership with Endeavor for young aspiring entrepreneurs.
• Reached 55,000 elementary and middle school students with the “Children: Heroes of the Economy” project.
• Reduced average customer complaint resolution time from three days to two days.
• Administered 673,553 hours of training in 2015 (7 business days per employee).

Governance Achievements

• Maintained a high capital adequacy ratio (14.5%).
• Kept non-performing loan ratio flat at 2%.
• Published seventh Sustainability Report in accordance with GRI standards.
• Became a signatory to the Pledge for Action at COP21.

Climate Goals & Targets

Environmental Challenges

• Global economic slowdown.
• Rising geopolitical risks.
• Declining growth prospects in China’s economy.
• Accelerating capital flows out of emerging markets.
• Climate change risks (extreme weather, regulatory changes).

Mitigation Strategies

• Effective risk management.
• Sound capital position.
• Proactive approach to climate change risk management.
• Offering products and services in energy efficiency and renewable energy.
• Measuring and minimizing carbon emissions from operations.

Supply Chain Management

Supplier Audits: Ongoing, nearly 50% of suppliers committed to Akbank’s principles.

Responsible Procurement

• Supplier Management Policy, UN Global Compact principles, priority to environmentally friendly and socially sensitive suppliers.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather conditions

Transition Risks

• Regulatory changes

Opportunities

• Renewable energy investments, energy efficiency projects.

Reporting Standards

Frameworks Used: GRI G4 Comprehensive

Certifications: ISO 10002:2004 (Complaint Management)

Sustainable Products & Innovation

• Akbank Energy-Friendly Loan, Akbank Direct Serbest Account, various products supporting SMEs and renewable energy.

Awards & Recognition

• Brand Finance Turkey’s Most Valuable Brand, EMEA Finance Best Bank in Turkey Award, Euromoney Best Bank in Turkey, Global Finance “The World’s Best Digital Banks-Western Europe” Award, many others.

Environmental Metrics

ESG Focus Areas

• Corporate Governance
• Sustainable Profitability and Growth
• Reduction of Carbon Emissions
• Secure Banking
• Customer Satisfaction
• Effective Risk Management and Internal Control
• Compliance with Anti-Bribery and Corruption Policies
• Ethical Banking
• Employee and Human Rights
• Environmental and Social Risk Management in Lending
• Sponsorship
• Employee Satisfaction

Environmental Achievements

• Major reductions in carbon emissions from operations due to implemented energy efficiency projects
• 29% annual paper conservation via 12 different improvements
• Recycling of 875 tons of paper at Kınalı Archives Center

Social Achievements

• Launched Center of Excellence in Finance (CEF) and CaseCampus projects
• Extended entrepreneurship initiatives to Ankara and Izmir under the “Smartstartup Cities” Program
• Akbank Junior Savers Project reached 75,000 elementary and middle school students
• Received FEM certification based on 22 criteria within the scope of the Equal Opportunity Model Project
• Became a signatory to the Women’s Empowerment Principles (WEPs)

Governance Achievements

• Publicly announced dividend policy
• Announced Corporate Governance Principles in annual report and website
• Bought back founders’ shares
• Signed the United Nations Global Compact
• Published UN Global Compact Communication on Progress Report
• Published a Sustainability Report in accordance with GRI Standards
• Participated in the Carbon Disclosure Project (CDP) Global 500 Reporting

Climate Goals & Targets

Environmental Challenges

• Climate change risks (heat waves, floods, droughts, extreme weather)
• Climate change laws and regulations
• Reputation risk

Mitigation Strategies

• Proactive risk management approach
• Close monitoring of changes in laws and regulations related to energy efficiency and renewable energy
• Offering products and services in energy efficiency and renewable energy
• Measuring and minimizing carbon emissions from operations and business travel
• Implementing policies and practices to manage reputation risk (full legal compliance, trust-based relationships with stakeholders, efficient complaint resolution)

Supply Chain Management

Supplier Audits: Continuous auditing to ensure compliance

Responsible Procurement

• Supplier Management Policy
• Priority given to vendors with environmentally friendly and socially sensitive systems

Climate-Related Risks & Opportunities

Physical Risks

• Heat waves
• Floods
• Droughts
• Extreme weather conditions

Transition Risks

• Climate change laws and regulations

Opportunities

• Renewable energy investments
• Energy efficiency investments

Reporting Standards

Frameworks Used: GRI G4 Comprehensive, UNGC

Certifications: ISO 10002 Complaint Management Quality Certification

Sustainable Products & Innovation

• Energy-friendly loans
• Renewable energy financing
• Eko POS tariffs
• Akbank Direkt Mobile application

Awards & Recognition

• Brand Finance World’s Top 500 Most Valuable Banking Brands
• Euromoney awards
• The Banker awards
• Global Finance awards
• World Finance awards
• EMEA Finance awards
• MasterCard awards
• Extel European Investor Relations Survey awards
• SAP Awards
• Architecture Excellence Awards
• Stevie International Business Awards
• Brandon Hall Human Resources Excellence Awards
• Crystal Apple Awards
• Turkish Public Relations Association (TÜHİD) Gold Compass Public Relations Awards
• Private Sector Volunteers Association (ÖSGD) awards

Environmental Metrics

ESG Focus Areas

• Corporate Governance
• Sustainable Profitability and Growth
• Reduction of Carbon Emissions
• Secure Banking
• Customer Satisfaction
• Employee Engagement
• Community Investment
• Environmental Risk Management
• Ethical Banking
• Information Security

Environmental Achievements

• Major reductions in carbon emissions from operations due to energy efficiency projects.
• 9.5% savings in printer paper consumption through double-sided printing.
• Significant paper savings through Credit Card e-statement and Contracted Merchant e-statements.
• Recycling of 934 tons of paper and 933 toner cartridges.

Social Achievements

• Launched CaseCampus entrepreneurship program, graduating 75 entrepreneurs and offering 262 internships/jobs.
• Implemented Akbank Junior Savers Project, reaching 90,000 children.
• Organized Akbank Academy of Family Businesses, training family business representatives.
• Akbank Volunteers system carried out nearly 100 projects, reaching 45,000 people.
• Reduced average customer complaint resolution time from three days to two days; increased service quality compliance from 60% to 90%.

Governance Achievements

• Full compliance with Corporate Governance Principles.
• Established robust internal control and audit infrastructure.
• Implemented Clean Banking Risk management practices.
• Established Information Risk Management Department reporting directly to the Board of Directors.
• Administered special training sessions to raise information security literacy among employees.

Climate Goals & Targets

Environmental Challenges

• Climate change risks (extreme weather, regulatory changes).
• Liquidity risks.
• Credit risks.
• Operational risks.
• Reputation risks.
• Legal risks.
• Risks from new products and services.
• Clean Banking risks.

Mitigation Strategies

• Proactive risk management approach.
• Internationally accepted risk management models and regulations.
• Cautious loan policies and procedures.
• Differentiated and diversified controls, insurance, and limits.
• Policies and practices for full legal compliance and stakeholder trust.
• New Product and Service Evaluation Committee.
• Clean Banking Principles.

Supply Chain Management

Supplier Audits: Approximately 50% of suppliers committed to comply with Akbank’s principles and policies, including the UN Global Compact.

Responsible Procurement

• Encouraging suppliers to comply with UN Global Compact, Akbank Code of Ethics and sustainability policies.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather conditions

Transition Risks

• Regulatory changes related to energy efficiency and renewable energy.

Opportunities

• Development of energy-efficient products and services, renewable energy investments.

Reporting Standards

Frameworks Used: GRI G4 Comprehensive

UN Sustainable Development Goals

• Goal 4 (Quality Education)
• Goal 5 (Gender Equality)
• Goal 6 (Clean Water and Sanitation)
• Goal 7 (Affordable and Clean Energy)
• Goal 8 (Decent Work and Economic Growth)
• Goal 9 (Industry, Innovation and Infrastructure)
• Goal 11 (Sustainable Cities and Communities)
• Goal 12 (Responsible Consumption and Production)
• Goal 13 (Climate Action)
• Goal 15 (Life on Land)
• Goal 17 (Partnerships for the Goals)

Akbank's initiatives contribute to these goals through various programs and activities detailed in the report.

Sustainable Products & Innovation

• Environmentally-friendly home mortgage loans, energy efficiency loans, renewable energy project financing.

Awards & Recognition

• Euromoney Excellence Awards: Best Bank in Turkey, Best Private Banking Overall in Turkey
• The Banker: Best Private Banking Overall in Turkey
• Global Finance: Best Bank in Turkey, Best Exchange Supplier in Turkey
• EMEA Finance: Best Bank in Turkey, Best Securitization Deal in the EMEA Region, Best Solar Energy Project Financing
• World Finance: Best Bank in Turkey
• Global Capital: Borrowing Deal of the Year in Turkey
• Mastercard: Best Customer Value of the Year Award
• Stevie International Business Awards
• Public Relations Association of Turkey (TÜHİD) Gold Compass Awards
• Crystal Apple Awards
• MIX Awards
• MMA Smarties
• Social Media Awards
• Gartner CRM Excellence Awards

Environmental Metrics

ESG Focus Areas

• Corporate Governance
• Risk Management and Legal Compliance
• Customer Satisfaction
• Employee Development
• Environmental Protection
• Social Contribution
• Culture and Arts
• Sustainable Finance

Environmental Achievements

• Reduced paper consumption by 12 million sheets and around 1,000 trees through digitalization.
• Recycled 812 tons of paper, saving 13,800 trees.
• 100% of energy project financing went to renewable energy projects, resulting in 5.8 million tons of CO2 emissions prevented.
• Akbank Data and Life Center achieved LEED Gold Green Building Certification.

Social Achievements

• Launched Tosla, a financial app for youth, contributing to financial inclusion.
• Organized the 5th edition of the "Good State of the City" project, engaging 3,200 young volunteers.
• Provided 36 hours of training per employee, with 30% delivered online.
• Maintained employee turnover below the industry average.

Governance Achievements

• Received the "World’s Best Digital Bank" award from Euromoney.
• Implemented robust risk management processes, including for cyber and fraud risks.
• Strengthened internal control and audit infrastructure.
• Maintained full compliance with legal and regulatory requirements.

Climate Goals & Targets

Environmental Challenges

• Climate change risks, including legal non-compliance and extra investment costs.
• Managing reputation risk.

Mitigation Strategies

• Proactive risk management approach, integrating internationally accepted models and regulations.
• Close monitoring of renewable energy and energy efficiency laws.
• Development of climate-friendly products and services.
• Implementation of Clean Banking principles.
• Robust information risk management system, including a 24/7 Cyber Security Center.

Supply Chain Management

Responsible Procurement

• Compliance with Akbank's policies, code of ethics, and UN Global Compact principles.
• Prioritization of suppliers with environmentally and socially responsible systems.

Climate-Related Risks & Opportunities

Transition Risks

• Legal non-compliance due to climate change regulations.
• Increased investment costs to combat climate change.

Opportunities

• Financing renewable energy projects.

Reporting Standards

Frameworks Used: GRI Standards Comprehensive

Certifications: ISO 10002 (Customer Complaint Management System), LEED Gold (Akbank Data and Life Center)

UN Sustainable Development Goals

• Goal 4 (Quality Education)
• Goal 5 (Gender Equality)
• Goal 6 (Clean Water and Sanitation)
• Goal 7 (Affordable and Clean Energy)
• Goal 8 (Decent Work and Economic Growth)
• Goal 9 (Industry, Innovation, and Infrastructure)
• Goal 11 (Sustainable Cities and Communities)
• Goal 12 (Responsible Consumption and Production)
• Goal 13 (Climate Action)
• Goal 15 (Life on Land)
• Goal 17 (Partnerships for the Goals)

Akbank's initiatives contribute to these goals through various programs and activities, as detailed in the report.

Sustainable Products & Innovation

• Energy efficiency loans
• Renewable energy project financing
• Digital banking products reducing paper consumption.

Awards & Recognition

• Euromoney’s "World’s Best Digital Bank"
• iF Design Award for Akbank Mobile

Environmental Metrics

ESG Focus Areas

• Sustainable Finance
• People & Communities
• Ecosystems Management
• Climate Change

Environmental Achievements

• Reduced total Scope 1 and Scope 2 CO2 emissions by 13%
• Saved 16 million receipts and 570 trees through paperless transactions
• Recycled 2,728 kg of waste toner cartridges
• Prevented 5.813 million tons of CO2e emissions through renewable energy project financing

Social Achievements

• Launched 'A Good You' wellbeing program
• 99% of employees who took maternity leave returned to work
• Employee turnover rate decreased to 6.67%
• Donated 500 surplus computers to schools in need
• Provided 12,459 employees with an average of 30 hours of training per person

Governance Achievements

• Established a Sustainability Committee
• Reduced Environmental and Social Impact Assessment limit to USD 10 million
• Issued Turkey's first Green Bond during the pandemic

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic and its economic impacts
• Climate change and its potential impact on the loan portfolio
• Uncertainty in global and local regulations related to climate change

Mitigation Strategies

• Implemented a Pandemic Prevention Action Plan
• Developed environmental and social credit policies
• Increased the share of renewable energy projects in the loan portfolio
• Issued a Green Bond to support low-carbon investments
• Implemented remote working model for employees

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Prioritizing local suppliers (92% in 2020)
• Requiring suppliers to comply with UN Global Compact principles

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather conditions

Transition Risks

• Changes in regulations (e.g., carbon tax)

Opportunities

• Financing renewable energy projects
• Developing energy-efficient products and services

Reporting Standards

Frameworks Used: GRI Standards: Core, Value Reporting Foundation’s Integrated Reporting Framework, Borsa İstanbul Sustainability Index (BİST SI), United Nations Global Compact (UNGC), Task Force on Climate Related Financial Disclosures (TCFD), Women’s Empowerment Principles (WEPS)

Certifications: Null

Third-party Assurance: PwC Independent Audit and Certified Public Accountant Inc.

UN Sustainable Development Goals

• SDG 4
• SDG 7
• SDG 8
• SDG 9
• SDG 10
• SDG 11
• SDG 12
• SDG 13
• SDG 15
• SDG 17

Initiatives contributing to various SDGs through sustainable finance, employee development, community engagement, and environmental protection.

Sustainable Products & Innovation

• Green Bond
• Energy-efficient loan products
• Digital First credit card
• Akbank FAV
• Tosla

Awards & Recognition

• Euromoney's 'Best Bank in Emerging Markets'
• iF Design Award for Akbank Mobile
• A’Design Award for Akbank Mobile
• Red Dot Award for Akbank Mobile
• 'Best Bank in Turkey' (Euromoney)

Environmental Metrics

ESG Focus Areas

• Sustainable Finance
• People & Community
• Ecosystem Management
• Climate Change

Environmental Achievements

• 80% of the Bank’s electricity is sourced from renewable resources
• Sun panels supply 5% of electricity use at Akbank Data Center.
• 47% reduction in Scope 1 and Scope 2 emissions compared to 2020
• 14 mn tons of plastic consumption prevention achieved by ending the use of single-use plastics in food service
• Improved CDP Climate score to B, published 1st CDP Water Security report (receiving B rating).

Social Achievements

• Strong gender balance: ~ 50% of employees who report directly to CEO are women
• Introduced Zero Tolerance to Violence Guide and Hotline
• Expanded paid parental leave to 10 days for men.
• Launched the “Strong Women in Tech” internship program to encourage gender diversity in technology roles.
• Introduced training to foster disability awareness, conducted accessibility audits for HQ & Branches
• Social Impact Assessment completed for community programs
• Launched a digital platform for Akbank volunteers in collaboration with Ability Pool.
• Akbank Youth Academy Reached 28K young people, partnerships with Microsoft, Cisco, Pearson & UPSchool.

Governance Achievements

• In 2022, our MSCI ESG assessment increased by two points from B to BBB.
• In 2022, we took place in the “Low Risk” category in the Sustainalytics ESG risk assessment.
• In 2021, we started our membership in the United Nations Environment Program Finance Initiative (UNEP FI). By signing the United Nations Responsible Banking Principles, we provided our activities in this area with an international identity.
• We announced our support for the Task Force on Climate-related Financial Disclosures (TCFD) in 2021.
• We have strengthened our integrated governance structure with our newly created policies or the policies we update yearly. (Environment, Human Rights Policy, Zero Tolerance to Violence Policy, Diversity and Inclusion Policy, etc.)

Climate Goals & Targets

Environmental Challenges

• Climate change risk
• Reputation risk
• Clean banking risk
• Privacy and information security risk

Mitigation Strategies

• Established a methodology for Internal Capital Adequacy Assessment Process (İSEDES) to identify, measure, and monitor climate change risk.
• Identified risk limits for monitoring climate change risk.
• Identified and documented policies and practices for legal compliance, stakeholder relationships, and customer complaint resolution.
• Implemented governance and operation models for information security and privacy.
• Invested in innovative technologies for cyber and fraud threat defense and incident resolution.

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Extreme intensification of climate conditions

Transition Risks

• Regulation
• Technology
• Market expectations

Opportunities

• Renewable energy investments
• Environmentally-friendly technology projects
• Circular economy investments

Reporting Standards

Frameworks Used: GRI Standards, Value Reporting Foundation (VRF), Integrated Reporting Framework, Borsa İstanbul Sustainability Index Banking Sector Criteria, UNEP-FI Principles for Responsible Banking, United Nations Global Compact, Task Force on Climate-Related Financial Disclosures (TCFD), Women’s Empowerment Principles (WEPs)

Certifications: ISO 14001, ISO 50001

Third-party Assurance: PwC Bağımsız Denetim ve Serbest Muhasebeci Mali Müşavirlik A.Ş.

UN Sustainable Development Goals

• Goal 7
• Goal 8
• Goal 9
• Goal 10
• Goal 11
• Goal 12
• Goal 13

Akbank contributes to the UN SDGs through its initiatives in sustainable finance, people & community, ecosystem management, and climate change.

Sustainable Products & Innovation

• SME Eco-transformation Package
• Green Foreign Trade Loan
• Transition Loan to a Low Carbon Economy
• Roof GES Investment Loan
• Blue Financing Product Package
• Electric and hybrid vehicle loan

Awards & Recognition

• Türkiye’s Best Private Banking Unit
• Türkiye’s Best Bank in Sustainable Finance
• Outstanding Leadership in Social Bonds (CEE)
• Outstanding Leadership in Sustainable Project Finance (CEE)
• Best Bank in Türkiye
• Sector Leader (Digital Solutions, Corporate Banking, Corporate Social Responsibility)

Environmental Metrics

ESG Focus Areas

• Sustainable Finance
• People
• Community
• Ecosystem Management
• Climate Change

Environmental Achievements

• Reduced operational emissions by 82% compared to the 2019 baseline in 2023.
• 100% of electricity used in 2023 came from renewable sources.
• Achieved a 40% energy savings with environmentally-friendly air conditioning changes in 2023.

Social Achievements

• Supported nearly 170 thousand retail banking, SME, commercial and corporate banking customers, including 1707 Women-Owned/Managed SMEs, 1645 Young SMEs and 19 Entrepreneurial SMEs, with the social loans we provided in the earthquake zone.

Governance Achievements

• Established a Sustainability Committee with permanent members including Executive Board Member, Independent Board Member, CEO, CFO, Senior Vice President of Investor Relations & Sustainability.
• Updated Sustainable Finance Framework in 2023.

Climate Goals & Targets

Environmental Challenges

• Transition risks associated with carbon pricing mechanisms and potential impact on customers' profitability and loan repayments.
• Drought risk posing a threat to project-financed hydroelectric power plants.
• Potential impact of expanding GHG emission reporting regulations on operations and indirect effects on loan portfolio.

Mitigation Strategies

• Developed an Environmental and Social Risk Assessment System.
• Provided employee training on green finance and climate risk management.
• Conducted studies to analyze physical climate change risks on project financing portfolio and implemented mitigation measures.
• Request climate change risk assessments from customers in projects where deemed necessary.

Supply Chain Management

Supplier Audits: 100%

Responsible Procurement

• Prioritizing suppliers who use environmentally and socially responsible systems.

Climate-Related Risks & Opportunities

Physical Risks

• Drought
• Excessive rainfall and increase in weather events
• Increase in heat waves

Transition Risks

• Carbon pricing mechanisms
• Regulatory changes

Opportunities

• Increased demand for renewable energy financing.

Reporting Standards

Frameworks Used: GRI, TCFD, PCAF

Certifications: ISO 14001, ISO 50001, ISO 45001

UN Sustainable Development Goals

• Goal 7
• Goal 13
• Goal 6

Sustainable Products & Innovation

• Sustainable Deposit product
• Digital sustainability services
• Renewable Energy Credit
• Low Carbon Economy Transition Loan
• Rooftop SPP Investment Loan
• Blue Finance Package

Awards & Recognition

• Power Finance Deal of the Year at the Bonds & Loans & Sukuk Awards

Environmental Metrics

ESG Focus Areas

• Sustainable Finance
• Ecosystems Management
• Climate Change
• People & Community
• Integrated Governance

Environmental Achievements

• 82% reduction in operational emissions in 2023 since base year 2019
• 100% of bank’s electricity sourced from renewable resources since the beginning of 2023
• 723 locations obtained energy & environment management certification

Social Achievements

• Akbank Transformation Academy reached 18K SMEs since 2022
• Akbank Academy reached 30K young people in 9M24 (165K since 2020)
• USD 1.4 mn invested in total to startups founded by Akbank intrapreneurs
• ~57% women in CEO’s direct reports
• 32 hrs training/employee

Governance Achievements

• Updated Remuneration Policy in line with our sustainability strategy
• Joined Business Against Domestic Violence Network
• Robust governance structure with Sustainability Committee and stakeholder teams

Climate Goals & Targets

Environmental Challenges

• Climate-related risks & impact on portfolio
• Decarbonization of loan portfolio

Mitigation Strategies

• Member of the Net-Zero Banking Alliance
• Disclosed interim emission reduction targets in line with PCAF methodology
• Committed to phasing out coal by 2040
• Embedding climate change due diligence process within lending processes for hard to abate sectors
• Providing Transition to a Low Carbon Economy Loan to business partners

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: PCAF, Sustainable Finance Framework in line with international standards, EU Taxonomy

Certifications: ISO 50001 (Energy Management), ISO 14001 (Environmental Management)

UN Sustainable Development Goals

• SDG#3, “Good Health & Well-being”

Sustainable Products & Innovation

• Rooftop Solar Panel Investment Loan
• Blue Loan Package
• Low Carbon Transition Loan
• Renewable Energy Loan
• EcoLease by Ak Lease
• Sustainable Deposit
• Environmentally Friendly Vehicles Loans
• Women-owned SME Package
• Eco- Transformation Package

Awards & Recognition

• Platinum Award under the “Social Bond of the Year” category in Global SME Finance Awards 2024
• “Best Bank for Social Bonds” award under in Central and Eastern Europe region in Sustainable Finance Awards 2024
• ‘The Best Workplace for Innovators’ globally, by Fast Company