We are included in the Dow Jones Sustainability Emerging Markets Index, one of the most prestigious platforms that evaluate the sustainability performance of the companies worldwide, once again. We are the only company based in Turkey that is included in the index for the fourth time in a row.
We continue to be the sole bank in Turkey that is included under Emerging Markets category of the Dow Jones Sustainability Index (DJSI). Determined by the evaluation of companies’ performances on several issues including ethics, corporate governance, financing practices, environmental and social performances in the entire value chain, risk management, measures taken to tackle climate change, transparency, supply chain, and human and labour rights, we were included in the index for the fourth time in a row.
We continue to contribute to the Sustainable Development Goals through innovative practices such as the first Social Bond issued to the companies based in developing countries, the first Green Loan in Turkey signed with Zorlu Energy, and the first Green Project Finance Loan in Turkey signed with Akfen Renewables. Thanks to adding value to the economy, society and all our stakeholders, we were selected as the Best Bank on Sustainable Finance in the Central and Eastern European Region at the Awards for Excellence, organized by Euromoney. We have been the only bank included in the DJSI, one of the most prestigious indices in terms of sustainability, from Turkey. We were also the only bank from Turkey in the United Nations Environmental Programme Finance Initiative’s event held on November 26th in Paris, with our environmental, social and corporate governance practices, integrated to all our operations in line with international standards. Despite the criteria that become more challenging each year and keen competition in the DJSI, we have been included in the index for four times in a row this year and we are carrying on this success in a consistent fashion.
"We do not only encourage our bank, but also our customers to adopt sustainable business models."
Proud of being the only bank from Turkey included in the index for four times in a row, Fuat Erbil, the CEO of our bank, stated, "We take great pride in repeating one of the most significant achievements possible in responsible and sustainable banking. For many years, also by closely following the global developments, we have been offering the best and the most effective solutions in this area. Thanks to our innovative practices that we adapt to our country's conditions, we not only encourage our bank, but also our customers to adopt sustainable business models and we support them to manage their environmental and social risks and opportunities in the best possible way. The Green Loan structure, which we have recently begun to offer, is one of the finest examples. Given the keen competition and ever challenging conditions of the world, it is no longer possible to progress by considering financial indicators only. All companies should consider the non-financial indicators as much as the financial indicators in their risk management and product development processes. In that sense, several companies in Turkey made a great progress. We sincerely wish the number of Turkish companies included in this particular index and other similar indices to increase.”
'First's in sustainability
As part of woman entrepreneurs support program initiated in 2006, we achieved the first Social Bond issue in Turkey, with International Finance Corporation (IFC) and provided a special financial resource to our country for the use of women entrepreneurs.
One of the most significant activities that we have realized on sustainability is the first Green Loan agreement in Turkey that we have signed with Zorlu Energy. The loan interest depends on the sustainability performance of the customer at the Green Loan, and when the customer increases their performance on predefined criteria in environmental, social, corporate governance areas, the interest level is reduced. Initiated for the first time in Turkey and yet a quite recent application adopted worldwide, the Green Loan agreement, based on this product, is one of the four agreements in the similar structure worldwide. The total volume of 41 green loan agreements worldwide amount to EUR 28.4 billion.
Following the first social bond issue in the emerging markets, and the first Green Loan in Turkey, we have also taken a pioneering role in our sector on sustainable finance, by becoming a party to the loan agreement on the first Green Project Finance in Turkey. We were served as facility agent and green loan coordinator in the loan agreement signed between four national and two international banks, and Akfen Renewables. As the green loan structure, which encourages improvement in the sustainability performance of the loan receiving companies throughout the entire term as from the date of signature, attracts intense attention in the world, it is expected that the green loan structure to draw attention in Turkey as well. The loan was the first green loan provided under the project finance, following the first corporate green loan in Turkey.