Sustainable Finance Strategy
Garanti BBVA is leading the sector through its innovative products and services to build more sustainable and inclusive economy in the path to reach Sustainable Development Goals. The Bank’s efforts to combat climate change and social inequalities along with its innovative solutions to create value for the economy, the society and all its stakeholders are recognized by national and international authorities.
Within the scope of its combat against the negative effects of climate change;
- Garanti BBVA has been the first bank from Türkiye to pledge coal phase-out in 2021; and pledged to eliminate the coal exposure of its portfolio by 2040 or sooner.
- In 2022, the Bank took these commitments one step further, and announced its decarbonization goals by 2030 in other carbon-intensive industries such as energy, automotive, iron and steel, and cement. These interim targets make up an important phase in reaching emissions targets aligned with net zero by 2050. In this context, Garanti BBVA is aiming to accompany its customers in their transitioning to a more sustainable future.
- In 2020, Garanti BBVA became a Carbon-Neutral Bank in scope 1 and 2 emissions. Again in 2020, the Bank announced its target to reduce its carbon emissions by 29% by 2025 and by 71% by 2035 within the frame of Science-Based Targets in line with the Paris Agreement’s goal to limit temperature rise to 1.5 degrees, and has been the first company to declare such a target in Türkiye. Having reduced its operational emissions by 75% at end 2020, the Bank purchased carbon credits for its remaining emissions and became carbon-neutral 15 years earlier than its reduction target. Since 2021, the Bank has been continuing to offset its operational emissions by purchasing carbon credits and supporting the projects in voluntary carbon markets recognized by international institutions.
- With its Climate Change Action Plan released in 2015, which focuses on carbon pricing, reducing deforestation, managing climate-related water risks through climate adaptation and establishing green office standards, the Bank also pledged that a minimum of 60% of the total funds allocated to new energy production facilities would be allocated to renewable investments; having also transcended this pledge, the Bank has allocated all financing for greenfield energy project investments to renewable energy since 2014. In addition, the Bank is targeting to update this Action Plan in 2024 following its climate risks monitoring initiatives.