The fact that the climate issue is one of the factors endangering the future of the planet shows that
humanity must seriously address climate change. VakıfBank is aware of its responsibility to minimize
the impact of these developments on humanity and places the fight against the climate crisis at the
center of its business strategies and activities. It evaluates the need for change and transformation
brought about by climate change from a broad perspective and closely monitors the regulations and
plans issued by relevant institutions.
VakıfBank works towards achieving its goals by closely monitoring the commitments it has made to
national or international initiatives/organizations within the scope of its sustainability strategy, and by
implementing policies it has established. Through the adoption of policies that promote low-carbon
and inclusive growth, VakıfBank encourages sustainable investment. To promote the widespread use
of renewable energy, it prioritizes renewable energy financing for its customers' energy investments.
With the awareness that the greatest impact in environmental and social areas occurs through
financing, VakıfBank established the Environmental and Social Risk Management System in 2022 to
assess the environmental and social impacts of the projects finance loans. Initially, it aims to evaluate
non-financial risks such as environmental, social, governance, and occupational health and safety for
project financing loans of USD20 million and above, and the potential effects of these risks. In the
future, the goal is to include the entire loan portfolio, excluding retail loans, in this risk analysis process,
in addition to project finance loans.
VakıfBank is taking strategic steps in the field of sustainable banking, which is one of the priority areas
for enhancing Turkey's access to international finance for green transformation. These steps aim to
diversify its funding structure through sustainability-themed transactions. In terms of sustainable
international funding, VakıfBank is achieving its set environmental, social, and governance (ESG)
performance targets and continuously setting new goals.
In 2020, VakıfBank received the ISO 14001:2015 Environmental Management System certification for
all its locations. Furthermore, as the first bank to establish an Integrated Management System (ISO
9001-ISO 14001-ISO 45001) starting from 2021, the bank aims to ensure the continuity of this system.
VakıfBank's Headquarters building in Istanbul Finance Center has received the LEED Gold Certification.
The project prioritizes efficiency in energy-consumption systems such as lighting and climate control,
aiming for high performance in the building envelope. It achieves a 28% energy efficiency according to
the American Energy Efficiency Standard. The project incorporates both rainwater harvesting and gray
water treatment systems. With the support of reclaimed gray water, the building achieves over 45%
water savings in comparison to the use of potable water. During the construction of the building, a
significant portion of the generated waste was sent for recycling and/or reuse, resulting in a substantial
reduction in the amount of waste sent to landfills.
VakıfBank aims to minimize plastic usage across all its locations by implementing water purification
systems in all branches, excluding affiliated branches, by 2023.
As of 2022, the Bank has become the first to apply a sustainability approach to expected credit loss
provisions policies under TFRS 9 (Turkish Financial Reporting Standards). Taking into account the
transition risks of manufacturers who export to the EU countries in the cement, electricity, fertilizer,
iron and steel, and aluminum sectors and are unable to switch to low-carbon production methods and
technologies, the Bank has increased the expected credit loss provisions for these customers within
the framework of TFRS 9 regulations, considering carbon taxes. Additionally, for customers covered by
the Renewable Energy Support Mechanism (YEKDEM), which aims to support renewable energy
production, the Bank has lowered the expected credit loss provisions within the framework of TFRS 9
regulations. This allows for the positive differentiation of customers supporting renewable energy
production, considering the positive impact they have on the environment, and the Bank plans to
continue ensuring their positive differentiation in all processes.
In 2019, VakıfBank committed to setting emission reduction targets by joining the Science-Based
Targets initiative (SBTi), which was established through a partnership between CDP, Global Compact,
World Resources Institute (WRI), and World Wildlife Fund (WWF) to ensure companies set climate
science-aligned emission reduction targets and guide the climate transition process, particularly in the
private sector. VakıfBank became the first Turkish public institution to approve its carbon emission
reduction commitment. Following this commitment, in October 2022, VakıfBank defined its sciencebased targets for carbon emission reduction and submitted them to SBTi. As a result, VakıfBank
became the first Turkish bank to have its targets approved by SBTi.
To achieve SBTi targets, VakıfBank plans to increase its engagement activities with customers, support
low-carbon financing, develop credit policies to reduce financed emissions, integrate ESG and climaterelated criteria into credit policies, and continuously provide support and resources to customers for
reporting and reducing greenhouse gas emissions. Additionally, VakıfBank has initiated efforts to
achieve "net-zero" emissions by 2050.
Furthermore, during this process, VakıfBank aims to achieve its targets for various sustainability
indicators. These targets include a yearly reduction of 2% in electricity consumption per square meter,
a 2% reduction in natural gas consumption per square meter, a 2% reduction in water consumption
per capita, a 2% reduction in paper usage per capita, and a 2% reduction in total carbon and
greenhouse gas emissions. These targets were set at the Board of Directors level in 2019 and reflect
VakıfBank's commitment to reducing its environmental impact and promoting sustainable practices.