Continuing to support investment projects that will ensure the protection of the environment and reduce the negative effects of climate change, Ziraat Bank aims to minimize environmental and social risks by conducting specific evaluations of each project.

Environmental and social impacts and risks considered in the credit evaluation processes

Inadequate assessment and management of environmental and social impacts and risks can lead to reputational loss and financial risks for both banks and investing companies. Therefore, it is crucial that credit assessment processes consider and appropriately manage environmental and social impacts and risks alongside financial, technical, and economic issues.

With this awareness, Ziraat Bank has created the “Environmental and Social Impact Management Policy in Lending Activities” to integrate universally recognized sustainability principles into its business model. This policy sets out the principles of environmental and social impact management, aiming to ensure that the projects financed by the bank provide high environmental and social contributions.

Under this policy, requests for credit for projects with an investment amount exceeding USD 50 million are subject to environmental and social assessments. The results of annual environmental and social risk assessments and monitoring are presented to the Sustainability Committee in line with the Bank’s Sustainability Policy.

Within the scope of the Environmental and Social Impact Management Policy in Lending Activities, 25 projects were evaluated from an environmental and social perspective during 2023, with no projects rejected due to being on the list of Non-Funded Activities.

Number of Projects Evaluated by Risk Category

Sectoral Distribution of Evaluated Projects

Contributing to sustainability through project financing

Through its financing activities, Ziraat Bank supports major infrastructure projects such as airports, highways, bridges and renewable energy projects, which create added value for the country’s economy and play a significant role in increasing employment.

Considering the potential environmental and social impacts in project financing, the Bank requests information and documentation from investors to ensure that projects evaluated in line with the principle of responsible banking meet environmental and social standards.

Ziraat Bank evaluates each project individually in the multi-lateral project finance transactions it engages in, with the aim of mitigating environmental and social risks and minimizing their impacts. Within this framework, the Bank ensures compliance with internationally recognized environmental and social standards accepted by international financial institutions and recommended by project consultants.

In its project finance contracts, Ziraat Bank obtains declarations and commitments from customers regarding environmental and social issues within the framework of laws and regulations they are subject to, and considers any failure to comply with these declarations and commitments as a default. Customer commitments in this regard are regularly monitored through periodic reports obtained from environmental consultants or investors.

Interest advantages and restructuring opportunities for TOA (Uncollectible Receivables) customers affected by the earthquake

In order to support TOA customers who have been financially affected by the earthquakes which struck our country, Ziraat Bank drew up a directive dated 13 December 2023 on the Restructuring of Personal Credit Cards, Overdrafts and Consumer Loans in the Earthquake Zone-TOA.

Individual customers with consumer loans, individual credit card debts and individual overdraft debts residing in the first group of earthquake disaster areas (the provinces of Hatay, Kahramanmaraş, Adıyaman, Osmaniye and Malatya, as well as the İslâhiye and Nurdağı districts of Gaziantep) with a confirmed AKS (Address Registration System) address and contact information as of 6 February 2023 were eligible to benefit from this restructuring.

This campaign, encompassing 9,600 accounts and over TL 33 million in recorded balances, offers interest rates and restructuring options which are highly significant in terms of their environmental and social impacts.

The advantages offered within the scope of the campaign include:

1. Relieving the Financial Burden

• The directive aims to reduce the financial burden of customers affected by the earthquake by offering them the opportunity to restructure their debts with low interest rates.
• Low interest rates aim to alleviate the financial stress on customers by allowing them to manage their debt more sustainably.

2. Social Solidarity and a Fair Approach

• Restructuring opportunities which represent social solidarity and a fair financial approach strengthen equality and justice in society by helping customers access finance under more favorable conditions during a difficult period.

3. Risk Management and Long-Term Recovery

• Restructuring options assist customers in forming risk management strategies, thereby supporting sustainable and long-term financial recovery.
• This directive not only targets customer satisfaction but also a focus on social responsibility, with the aim of creating a positive environmental and social impact.