ZIRAAT BANK AND THE ENVIRONMENT

Ziraat Bank’s environmental approach is based on combating climate change and global warming, ensuring optimal efficiency in the use of resources, and reducing waste.

In this vein, it monitors the consumption of natural resources by implementing effective environmental management, takes steps to reduce consumption of natural resources and works in cooperation with suppliers.

Ziraat Bank continues to support investment projects which will protect the environment and reduce the negative effects of climate change.

Differently from previous years, Ziraat Bank has added flights and paper consumption, which are considered within Scope 3, to its greenhouse gas inventory calculations.

GHG EMISSIONS

Ziraat Bank completed the inventory work on the measurement of greenhouse gas emissions for 2021 by collecting energy data from the head office, domestic branches and the regions.

With respect to greenhouse gas emissions, the points set out in Scope 1 and Scope 2 in the GHG Protocol and ISO 14064-1: 2006 standard are referred to. The IPCC, TIER-1 Methodology was used to calculate greenhouse gas emissions within the specified limits, and TIER-2 Methodology for activity data with national data (electricity). The GWP (Global Warming Potential) coefficients used in the calculations are taken from the IPCC AR5 assessment report.

The chart on page 84 shows the breakdown of greenhouse gas emissions by source. Electricity-based emissions accounted for the highest share of total emissions with a 53% share (54.4% in 2020), followed by emissions from the company’s vehicles with a 19.5% share (19.6% in 2020), and fuels used in the buildings with a 16.9% share (15.9% in 2020). The upward trend in emissions from refrigerant gases (F-gases) continued in 2021 (%10.7).

Differently from previous years, Ziraat Bank has added flights and paper consumption, which are considered within Scope 3, to its greenhouse gas inventory calculations. The distribution of greenhouse gas inventory, including Scope 3, is provided in the chart on page 84.

Scope 1 emissions increased by 4.6% compared to 2020, approaching their 2016 levels. In terms of fuel use in 2021, diesel consumption in vehicles accounted for the highest share of emissions with a 41.2% share. Diesel was followed by natural gas (28.2%) and coal (6.3%).

The biggest increase in 2021, when compared to the previous year, was in natural gas consumption. While the fall in consumption in 2020 to below the standard usage amount was due to the closures associated with the Covid-19 pandemic, the opening and active use of the Bank’s Varlık Campus in Ankara and Yahya Kemal Caddesi Guesthouse and Hisarpalas and Koşuyolu service buildings in Istanbul contributed to the increase during 2021.

Indirect greenhouse gas emissions

Ziraat Bank’s indirect greenhouse gas emissions decreased by 1.4% compared to 2020. Although electricity consumption increased by about 3%, the reduction in emissions caused by the 4% decrease in the electricity emission factor for 2021, which resulted from the decrease in the use of fossil fuels in electricity generation in Turkey in 2020 compared to the previous year.

While the emission factor is used in the calculation of the current year’s emissions from electricity consumption, the previous year is taken into account where there is data on energy resources used in Turkey’s electricity production. Accordingly, the electricity emission factor in 2021 was affected by the change in the breakdown of energy sources used in electricity generation in 2020.

CHANGE IN INDIRECT GREENHOUSE GAS EMISSIONS

Indirect Greenhouse Gas Emissions (Scope 2)	2020		2021		%
Indirect Greenhouse Gas Emissions (Scope 2)	Indirect Energy Consumption	Indirect Greenhouse Gas Emissions (tCO2e)	Indirect Energy Consumption	Indirect Greenhouse Gas Emissions (tCO2e)	Change (Scope 2)
Electricity purchased (kWh)	81,999,262	39,110	84,403,363	38,564	-1.40
Total		39,110		38,564	-1.40

Emissions originating from business flights and paper consumption, which are included in the eventful Greenhouse Gas Emissions, called Scope 3, are added to the greenhouse gas emissions calculations for 2021.

OTHER INDIRECT GREENHOUSE GAS EMISSIONS

Indirect Greenhouse Gas Sources	(tCO2e)
Flights (domestic and international)	199.6
Paper consumption	12,380.4
Total	12,580.0

Ziraat Bank’s greenhouse gas inventory for 2021 was 85,391 tCO2e. Emissions increased by 1.4% in 2021 compared to the previous year, but remained below the greenhouse gas emissions since 2014.

In 2021, the ratio of greenhouse gas emissions in Ziraat Bank’s asset size was 0.05, a reduction of 30% compared to the previous year (0.08 in 2020; 0.13 in 2019; 0.14 in 2018). The Bank aims to support the decrease in greenhouse gas intensity with effective energy management practices.

ENVIRONMENTAL FACTORS IN PROJECT FINANCE

With the financing it provides, Ziraat Bank extends support to large infrastructure projects such as airports, highways, bridges and renewable energy projects, which generate added value for the country’s economy and play an important role in job creation.

Reflecting its approach to Responsible Banking, the Bank also considers the possible environmental and social impacts which these projects may create in the transactions which it evaluates within the scope of project finance.

In loan agreements related to multilateral project finance transactions involving Ziraat Bank, the Bank aims to eliminate environmental and social risks and/or minimize their effects by evaluating each project on an individual basis. In this framework, the Bank ensures compliance with the environmental and social standards accepted by international financial institutions and recommended by project consultants.

In project finance contracts prepared by Ziraat Bank, the Bank receives statements and commitments from customers regarding environmental and social issues in accordance with the laws and regulations to which the customers are bound, as well as issuing notes of default in instances of failure to comply with the declarations and commitments. In this context, customer commitments are regularly monitored through periodic reports prepared by environmental consultants or investors.

ENERGY EFFICIENCY AT THE TOP OF FOCUS AREAS

Ziraat Bank continuously improves its environmental performance in order to leave a cleaner and more livable world to future generations. In this context, the Bank has implemented many innovative practices regarding energy saving and the efficient use of energy resources.

Ziraat Bank realized the installation of 517 air conditioning systems equipped with high-efficiency inverter technology using ozone-friendly R410A coolant gas in 2021. A total of 124 of these air conditioning systems that were installed in order to reduce the cost of heating and increase energy efficiency were procured in accordance with the next generation VRF system standard which maximizes both energy savings and comfort. A total of 4.04 tons of R410A coolant gas was used in the installed systems.

LED lighting has been installed in Ziraat bank branches, along with the illuminated billboards and ATM concept.

Ziraat Bank carries out systematic studies to enable its mobility impaired customers to access products and services more easily.

Within the scope of Accessible Banking, the Bank carried out the following activities;

Providing tactile surface application for the visually impaired on indoor and outdoor floors, a call button which disabled citizens can use to request help when they come to the branches and an information board with Braille alphabet printed on the outer door, in 1,120 branches.
Having elevators for disabled people in 44 Branch and Head Office buildings.

Ziraat Bank aims to expand its efforts to enable disabled customers to easily use branch, ATM and internet banking services to all branches.

One of the applications for energy saving and efficient use of energy resources at Ziraat Bank is Green IT, which optimizes the energy consumption of computers.

Accordingly, warning messages are sent to users at specified times to ensure that computers which are still switched on outside working hours in the Bank’s offices are switched off, and that computers are automatically switched off if they are not actively in operation.

Generators are monitored remotely and centrally to check if they have been activated in the event of a power outage. The fuel status of the generators is also monitored remotely and an uninterrupted power supply is provided in the event of potential power outages.

Ziraat Bank, which has the most widespread ATM network in Turkey, has completed the project of using biometric systems placed at ATM cubicle entrance points. Within the scope of the project, data on ATM cubicle temperature and energy consumption is monitored centrally and usage adjustments are performed in light of this data in an effort to reduce energy expenditures.

It is possible to save a high volume of paper by double-sided printing in multifunctional printers used within the Bank.

Ziraat Bank continuously improves its environmental performance in order to inherit a cleaner and more livable world for future generations.

EFFECTIVE WASTE MANAGEMENT ACTIVITIES

Empty toner and drum units which are not used in Ziraat Bank branches are disposed of under the supervision of the manufacturer. In 2021, a total of 23,000 kg of waste products were accredited and disposed of by the responsible recycling company.

Within the scope of the practices undertaken to reduce the use of toner in the Bank, the number of dots used for each character and the optimal number of points are adjusted and dots which cannot be discerned by the user are not printed, thus resulting in a 20% saving in toner use. The savings achieved prevented carbon dioxide emissions totaling 516,000 kg.

In addition, the Bank’s printer inventory is being replaced with new generation inkjet products which consume considerably less energy and minimize the harm to the environment in terms of waste.

Defective IT equipment in the Ziraat Bank units and branches is collected in Bank service centers and returned to use by carrying out repairs and renewals.

Waste IT materials, sheet metal materials such as system cabinets and air conditioning units, battery and scrap ATM devices are sold on to companies which hold transportation and processing licenses issued by the Ministry of Environment and Urbanization. Thus, waste is treated as a raw material through recycling, preventing such waste from harming the environment. In this framework, approximately 47 tons of waste material was sent to recycling in 2021.

In the process of replacing chemicals from expired fire tubes, Ziraat Bank works with companies authorized to collect and dispose of the chemicals.

In addition, waste such as glass, plastics and paper generated from the bank service buildings is collected in cooperation with the municipalities.

Approximately 47 tons of waste material was sent to recycling in 2021.

SIGNIFICANT GAINS FROM PAPER SAVINGS
Within the scope of the audit model that Ziraat Bank implements on the axis of sustainability and responsible banking, the practice of submitting physical documents and reports was discontinued, with branch reports instead being generated through the system. In addition to branch audits, audit reports for all head office units have been prepared and monitored through the system.

In addition, with the e-signature and virtual archive application in use throughout the Bank, all audit and review/investigation reports are archived digitally on the main banking software without the need for a physical document archive.

The transfer of audit and inspection and investigation reports to the system and the virtual archive application saved the need for 36,000 sheets of A4 paper.

A4 paper consumption throughout the Bank stood at 243,000 packages in 2021, marking a reduction of 39,000 packages (14%) when compared to the previous year.

Ziraat Bank sells documents and waste paper for which the legal storage period has expired, to contracted authorized companies for recycling purposes. In this context, approximately 1,125 tonnes of waste paper was recycled in 2021.

OTHER ENVIRONMENTAL PRACTICES

Ziraat Bank aims to obtain LEED Certification by designing the Ziraat Towers to be built at the Istanbul International Finance Center campus, which is based in Ataşehir, İstanbul, in accordance with international environmental standards.

In the course of the continuous improvement work undertaken in physical service points, the materials used in construction projects such as installations, electrical components, equipment, furniture and furnishings are examined by Ziraat Bank within the scope of R&D work, and the functionality and recycling properties of the materials are taken into consideration with concepts which will minimize damage during the selection, with consideration given to the environmental impact. In line with the sustainability concept, 113 service buildings were renovated at the Bank in 2021.