Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Recycled 890 tons of paper, preventing the emission of 35,000 tons of greenhouse gases and saving 15,000 trees.
• Provided USD 4 billion in financing for 138 energy projects, 75% of which were renewable energy projects.

Social Achievements

• Enabled Banking program reached 369 Enabled ATMs across 45 provinces, assisting orthopedically and visually impaired customers.
• Launched Evreka, an idea development platform, resulting in 24 implemented employee ideas.
• Launched Philanthropy Advisory services for Private Banking customers.
• Reached 100,000 children through the “I Read, I Play” project.
• Received the “Turkey’s Firsts for the Hearing Impaired” award and the “Education Overcomes Any Barrier” award from the Presidency of the Republic of Turkey.

Governance Achievements

• Increased corporate governance rating in the İstanbul Stock Exchange (ISE) Corporate Governance Index from 8.02 to 8.80.

Climate Goals & Targets

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: UN Global Compact

Certifications: ISO 14064 (in progress)

Awards & Recognition

• Bank of the year in Turkey
• Best Banking Group in Turkey (World Finance)
• Ninth among the “10 Most Valuable Brands in Turkey” (Brand Finance)
• 100th in the Leadership Excellence 500 ranking
• Turkey’s Superbrand
• Excellence in Practice award (American Society for Training and Development)
• Europe’s Best Foreign Trade Finance Provider (Global Finance)
• Best Customer Satisfaction award (KalDer)
• Leading Bank in Credit Card Shopping Volume (Visa Europe)
• Best Marketing Campaign award (Yapı Kredi Bank Azerbaijan)
• Best Customer Relations Management award (Gartner)
• Education Overcomes Any Barrier award (Presidency of the Republic of Turkey)
• Turkey’s Firsts for the Hearing Impaired award (Turkish National Federation of the Deaf)
• Europe’s Best Employer certificate (CRF Institute)
• Internal Audit Awareness award (TİDE)
• Europe’s Best Online Bank (Global Finance)
• Silver Mixx Award

Environmental Metrics

ESG Focus Areas

• Financial inclusion
• Environmental footprint
• Climate Change
• Ethical banking
• Diversity and Inclusion
• Responsible Financing

Environmental Achievements

• 15% decrease in energy consumption compared to 2017
• 19% decrease in greenhouse gas emissions (Scope 1+2+3) compared to 2017
• 27% reduction in paper consumption compared to 2017
• 134,91 thousand tonnes of CO2e emissions prevented by upgrading lighting systems

Social Achievements

• Increased corporate governance rating from 9.43 in 2017 to 9.58 in 2018
• Provided over TL 65 million to 325 projects by women entrepreneurs
• 96% female employees’ return-to-work rate after maternity leave
• 74.5% employee satisfaction rate
• 10,841 calls received via Employee Support Helpline

Governance Achievements

• Improved corporate governance rating
• No confirmed cases of bribery or corruption reported
• 91 reports received via ethics hotline, all resolved

Climate Goals & Targets

Environmental Challenges

• Managing operational risks
• Managing credit risks, including environmental and social risks
• Managing information technology risks and cyber security
• Managing bribery and corruption risks
• Managing human rights risks

Mitigation Strategies

• Implementation of Business Continuity Management Policy, Contingency Plan, Crisis Management and Business Recovery Plans
• Use of ESRA System to assess environmental and social risks of investments
• Establishment of Information Technologies Risk Management Framework
• Implementation of Anti-Bribery and Corruption Program
• Regular assessment of operations regarding human rights and corruption risks, training activities to raise awareness

Supply Chain Management

Supplier Audits: Monitoring the performance of suppliers in areas such as anti-bribery and corruption, human rights, and ethical values

Responsible Procurement

• Responsible Procurement Policy
• Monitoring supplier performance
• Prioritizing local suppliers (93% in 2018)

Climate-Related Risks & Opportunities

Opportunities

• Financing renewable energy investments

Reporting Standards

Frameworks Used: GRI Standards: Core option, GRI Financial Services Sector Disclosures, Borsa Istanbul Sustainability Index Banking Criteria, UN Global Compact Principles, UN Sustainable Development Goals, Women’s Empowerment Principles (WEPs)

Certifications: ISO 14001:2015 (Head Office buildings and domestic subsidiaries)

Third-party Assurance: KPMG Bağımsız Denetim ve Serbest Muhasebeci Mali Müşavirlik A.Ş. (limited assurance)

Sustainable Products & Innovation

• Green Project Finance Loan
• Female Entrepreneur Loan
• SME Support (Respite) Loan Program
• Agricultural Banking products
• Digital banking solutions

Awards & Recognition

• Numerous awards in Digital Banking, Banking Services & Products, Alternative Delivery Channels, Subsidiaries, and Corporate Communication Management (see Appendix 2)

Environmental Metrics

ESG Focus Areas

• Climate Crisis and Environment
• Sustainable Finance
• Risk Management and Corporate Governance
• Human and Society

Environmental Achievements

• 100% of electricity need supplied from renewable energy sources
• Approximately 35,862 tons of CO2e reduction by supplying the total 2023 electricity need from renewable energy sources
• 624,451 kWh of energy generated from solar power plant
• 272.96 million sheets of paper saved through digitalization
• Received a score of A both in CDP Climate Change Program and in CDP Water Security Program, becoming the first financial institution from Turkey to enter the Global A List

Social Achievements

• Launched the Yapı Kredi Sustainable Preference Program (Step)
• Supported the people in the region to recover from the devastating earthquake of February 6, 2023
• Launched the “Snowball for Tomorrow” education and development project
• Yapı Kredi Volunteers organized 53 projects for regions and people in need of aid with the participation of 2,040
• Established Customer Communication Centers in Cities of Hope founded in Hatay, Kahramanmaraş and Adıyaman

Governance Achievements

• Joined the Net-Zero Banking Alliance
• Became the first and only financial institution from Turkey to sign the Finance for Biodiversity Pledge
• Maintained its AA (Leader) rating in MSCI ESG rating
• Evaluated as having a “Strong” ESG risk management in Sustainalytics’ ESG Risk Rating report
• Listed in Borsa Istanbul (BIST) Sustainability Index and BIST Corporate Governance Index

Climate Goals & Targets

Environmental Challenges

• Global slowdown in economic growth, geopolitical uncertainties, high inflation, and the negative effects of the major earthquake disaster in Turkey
• Climate change and its impact on the economy and the banking sector
• Data limitations and uncertainties in measuring financed emissions
• Insufficient or incompetent human resources, loss of critical human resources and not backing up critical human resources

Mitigation Strategies

• Effective risk management, dynamic asset-liability management, and strong capital structure
• Investing in the most up-to-date technologies and dedicated employees
• Implementing targets, strategies and action plans aimed at reducing GHG in all its operational activities
• Launching projects to improve data quality and establish a software infrastructure for regular measurement and monitoring of financed emissions
• Implementing new practices related to the transformation in human resources in all areas from employer branding to recruitment, from training-development practices to career management

Supply Chain Management

Responsible Procurement

• Responsible Procurement Policy launched in 2016, prioritizing suppliers with efficient production methods and reduced environmental impact

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events, rising average temperatures, potential capacity drops of financed hydroelectric power plant projects

Transition Risks

• National and international regulations related to climate change, changing market expectations with the transition to a low-carbon economy, emerging new technologies

Opportunities

• Financing green and sustainable projects, supporting customers in their transition to sustainable business models, developing sustainable finance products

Reporting Standards

Frameworks Used: GRI Standards, International Framework of the Value Reporting Foundation, Borsa Istanbul Sustainability Index Banking Criteria, United Nations Global Compact, United Nations Sustainable Development Goals, Women’s Empowerment Principles, TCFD

Certifications: ISO 14001, ISO 14064-1, ISO 50001, ISO 14046

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

Sustainable Products & Innovation

• Sustainability-linked loans, renewable energy and energy efficiency loans, Nature-Friendly Mortgage, Nature-Friendly Auto Loans, Clean Energy Fund

Awards & Recognition

• Global Finance Top Innovations 2023, World's Best Digital Bank Awards 2023, Euromoney Sector Leader awards, Global Banking & Finance Awards 2023, Stevie Awards, Gartner - Eye on Innovation Awards for Financial Services, International Finance Awards

Environmental Metrics

ESG Focus Areas

• Renewable Energy
• Green Buildings
• Clean Transportation
• Energy Efficiency
• Environmentally Sustainable Management of Living Natural Resources and Land Use
• Terrestrial and Aquatic Biodiversity Conservation
• Sustainable Water and Wastewater Management
• Pollution Prevention and Control
• Eco-efficient and/or Circular Economy Adapted Products, Production Technologies and Processes
• Climate Change Adaptation
• Access to Essential Services – Healthcare
• Access to Essential Services – Education
• Access to Essential Services – Disaster and Emergency Relief
• Affordable Basic Infrastructure – Water and Sanitation
• Affordable Basic Infrastructure – Telecommunications
• Affordable Basic Infrastructure – Transportation
• Affordable Basic Infrastructure – Energy Accessibility
• Food Security – Access to Food
• Employment Generation
• Affordable Housing

Environmental Achievements

• 2.4 million tonnes of CO2e avoided with renewable energy financing in 2022
• 22% renewable energy financing rate in total project financing in 2022

Social Achievements

• TRY 350 million (approximately USD 10.9 million) in loans provided to enterprises led by women business owners through TURWIB program
• TRY 650 million (approximately USD 33.14 million) in disaster relief funds provided after the Istanbul earthquake in 2023, including donations and loan extensions

Governance Achievements

• Implementation of the Environmental and Social Risk Assessment (ESRA) system in 2017
• Adoption of a Code of Ethics and Business Conduct, including anti-bribery, anti-corruption and anti-money laundering policies

Climate Goals & Targets

Environmental Challenges

• Potential negative environmental and social outcomes from financed projects despite positive expectations
• Environmental and social risks associated with lending activities, predatory lending, money laundering, business ethics, and community relations

Mitigation Strategies

• Implementation of the ESRA system based on local legislation and IFC Performance Standards
• Code of Ethics and Business Conduct, Responsible Lending Statement, adherence to UN Global Compact principles, and Human Rights Statement
• Corporate Policy on Prevention of Laundering of Proceeds of Crime and Financing of Terrorism with KYC procedures and constant monitoring
• Stakeholder engagement on environmental and social issues and annual follow-up on key impact indicators
• Exclusion list within Environmental and Social Policy

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• Drought
• Desertification
• Extreme weather events
• Sea level rise
• Decline in agricultural productivity
• Forest fires
• Pests
• Loss of biodiversity

Reporting Standards

Frameworks Used: Sustainability Bond Guidelines 2021, Green Bond Principles 2021, Social Bond Principles 2023, Green Loan Principles 2023, Social Loan Principles 2023, IFC Guidelines for Blue Finance

UN Sustainable Development Goals

• 1
• 2
• 3
• 4
• 6
• 7
• 9
• 11
• 12
• 13
• 15

The instruments issued under the Yapı Kredi Sustainable Finance Framework are expected to help advance the SDGs listed above.

Sustainable Products & Innovation

• Sustainability-related loans
• Renewable energy and energy efficiency loans
• Nature-friendly mortgages
• Nature-friendly car loans
• Clean energy funds