August 2021, İstanbul, Turkey – In line with its commitment to a climate-positive future / to fight climate change / confirming its net-zero ambition, Garanti BBVA joins the Net-Zero Banking Alliance (NZBA), an industry-led, UN-convened alliance of banks worldwide, committed to aligning their lending and investment portfolios with net-zero emissions by 2050 or sooner, in line with the most ambitious targets set by the Paris Climate Agreement.
Representing almost a quarter of global banking assets, with over 50 members from 27 countries and $37 trillion in total assets, the Alliance is a critical step in the mobilisation of the financial sector for climate. It recognises the vital role of banks in supporting the global transition of the real economy to net-zero emissions, encompassing both operational and attributable emissions, including Scope 3 emissions.
Alliance members commit to:
o Set scenario-based interim targets for 2030 or sooner for priority sectors
o Prioritise areas of most significant impact, i.e. the most greenhouse gas-intensive and emitting sectors
o Annually publish emissions and emissions intensity
o Take into account the best available scientific knowledge
o Set first target(s) within 18 months of signing and report annually thereafter
o Disclose progress against a board-level reviewed transition strategy
The NZBA is convened by the United Nations Environment Programme Finance Initiative and is the banking element of the Glasgow Financial Alliance for Net Zero, chaired by Mark Carney, UN Special Envoy on Climate Action and Finance ahead of COP 26.
Garanti BBVA is proud to join leading peers from the banking industry in these collective efforts to reach net-zero emissions by 2050. We look forward to engaging with our clients to support them in their transition plans and accelerate action on climate. Garanti BBVA has been taking initiatives for more than 15 years in sustainable development and tackling climate change and inequalities, by leading the sector in Turkey with its innovative financing models. It became the first bank in Turkey that announced its absolute emission reduction target, in line with the 1.5 degree target, within the scope of the Science-Based Targets methodology at the beginning of 2020 to tackle climate change and to reduce Scope 1 and Scope 2 emissions by 29% by 2025 and 71% by 2035. In 2020, Garanti BBVA not only announced its target, but also purchased carbon credits for its remaining emissions after reducing its emissions from its operations by 75% compared to the reference year. Thus, as a carbon neutral bank, Garanti BBVA achieved its 2035 target 15 years earlier. In addition, as the first bank that committed to exit coal from Turkey, Garanti BBVA announced it would eliminate all its coal-related business activities by 2040.
In his statement, Recep Baştuğ, Garanti BBVA General Manager said, “We know that climate change is a global threat that would affect every aspect of civilization. That's why we set our target at the highest level to tackle climate change. In line with the Paris Climate Agreement targets, we made a much more ambitious commitment on behalf of our sector, by following the global trends towards becoming a net-zero bank and joining the industry-led, United Nations-convened Net Zero Banking Alliance. In 2018, we became the first bank from Turkey among the founding members of the United Nations Principles for Responsible Banking. Now, we remain committed to tackling the climate crisis by joining the United Nations banking element focused on a net-zero future. As a bank aware of its responsibilities to the climate crisis, we are happy to represent our country on this international platform. Banks have a very important role as financing institutions in the fight against climate change. The launch of the NZBA is also considered as a historic step towards developing globally coordinated, accelerated action. In this context, we are proud to be the 54th member of NZBA, which is known as the strongest commitment group in global banking sector, and to be the first bank in Turkey to announce this commitment, and taking action to develop strategies to make our portfolio net-zero carbon by 2050.”
About the Alliance:
The industry-led, UN-convened Net-Zero Banking Alliance brings together over 50 banks representing almost a quarter of global banking assets, which are committed to aligning their lending and investment portfolios with net-zero emissions by 2050. Combining near-term action with accountability, this ambitious commitment sees banks setting an intermediate target for 2030 or sooner, using robust, science-based guidelines. The Alliance will reinforce, accelerate and support the implementation of decarbonisation strategies, providing an internationally coherent framework and guidelines in which to operate, supported by peer-learning from pioneering banks. It recognises the vital role of banks in supporting the global transition of the real economy to net-zero emissions.