Released regularly since 2013 by Carbon Disclosure Project (CDP), Global Water Report assesses the precautions taken by the private sector actors against the ongoing global water risks, water management performances and strategies developed on the subject. Recent report of CDP for 2018 period points at the fact that precautions taken by the business world in terms of water management are still insufficient.
The report indicates that water-related risks of 296 companies assessed regularly by CDP between the 2015-2018 period are gradually increasing each year. Accordingly, water risk rate of 70% in 2015 increased to 75% by 2018. In addition, in 2018, the companies assessed by the report were faced with a financial loss of 38.5 billion USD dollars due to water-related reasons.
While the targets set by customers to decrease water consumption doubled by 2018, the number of companies with an increasing rate of water consumption showed an increase of 50%. The increase in water consumption is mostly observed in food, agriculture, manufacturing and mining industries. Specifically for the agriculture industry, increase in the drought due to climate change leads to an increased need for irrigation.
It’s also observed that 77% of the companies operating in industries with higher economic influence encounter water-related financial risks. While 93% of them monitors these issues at highest management level, in only 31% of these companies, senior managers are included in the resolution processes of water-related problems.
As Garanti Bank, we are committed to contributing to sustainable development. In this context, we believe that CPD has a critical role both in sharing of our sustainability performance in a transparent way and mobilization of Turkish business world towards sustainability. Since 2009, we have been reporting our impacts within the scope of CDP Climate Change, and since 2015, our impacts within the scope of CDP Water programs. At the same time, we are the main sponsor of CDP Turkey.
With our financial contribution, we aim to position ourselves as an active player in terms of the water-related risks. Projects on water risks accounted for 55.2% of our project financing portfolio for 2017. We implement Environmental and Social Impact Assessment (ESIA) in order to assess the environmental and social risks and we ensure reduction in environmental and social impacts through action plans developed as a result of these assessments.
We’re one of the participating parties of Büyük Menderes project in order to encourage clean production in textile industry which has a high rate of water consumption. We offer special interest rate reductions using our own resources - without any international development bank fund - for improvement projects of textile-industry manufacturers. With an investment of 12 million Euros by the project, it will be possible to save up to 20% annually in water, energy and chemicals costs. This investment will annually have a return of 10 million Euros in savings.
In addition to the credits we offer, we limit our impacts through our actions oriented at reducing our own water consumption. We prefer armatures with lower water consumption in our buildings. We collect rainwater on the roof of our Headquarters, and we utilize the rainwater by using it in watering the garden. Through these procedures, we contribute to two Sustainable Development Goals, SDG 6: Clean Water and Sanitation and SDG 14: Life Below Water.