Participation in the Strength of Nature
Combating Climate Change and Environmental Compliance
Ziraat Katilim places the fight against climate change at the center of its corporate strategy. The Bank considers climate change and the transition to a low-carbon economy as one of the main priority areas of its responsible banking approach. In line with its understanding of sustainable development, which is compatible with participation banking principles, the Bank focuses on long-term value creation. Environmental impacts are monitored and improvement-oriented practices are carried out.
The Ziraat Katilim Sustainability Policy was published on the corporate website in 2023 and sets out the general framework of the Bank's sustainability approach, which considers environmental and social impacts. In line with this policy, the Bank takes environmental and social matters, as well as related potential risks, into account in its decision-making processes. Environmental impacts arising from operations are managed within the scope of the Environmental and Climate Change Policy. Potential environmental and social impacts arising from financing activities are included in evaluation processes. An approach aimed at increasing the environmental awareness of customers and suppliers is adopted. The sustainable development approach is reflected in the Bank's business model and practices.
Ziraat Katilim carries out studies aimed at developing its climate strategy within the scope of its work on climate change. The Bank conducts analyses to incorporate climate risk factors into its risk management system and, in this context, collects and evaluates customer climate data. The Bank is expanding the scope of measurement for emissions arising from its operations and continues its preparations related to emission reduction targets.
In 2024, Ziraat Katilim completed the first phase of its climate strategy and risk measurement project and carried out evaluations aimed at quantifying climate risks. Studies were conducted to develop a portfolio-based climate heat map. The Bank performs scenario analysis and stress testing practices. Within the scope of climate risk studies, frameworks and drafts related to the planned actions were prepared and presented to the Sustainability Committee during the relevant reporting period.
Ziraat Katilim addresses the potential impacts of climate change on its activities through a holistic risk management approach. The Bank carries out systematic studies for the early identification, measurement, monitoring, and management of sustainability- and climate-related risks. Direct risks arising from operational activities and indirect risks stemming from the credit portfolio are evaluated together, and these areas are incorporated into strategic planning, risk management, and operational processes.
Detailed information can be found in the Sustainability and Climate-Related Risk and Opportunity Management section of the report.
The Bank continues to improve its digital infrastructure and data management processes in order to regularly monitor emission and energy data. In 2025, cooperation with a third-party firm was initiated to make the processes related to the calculation and reporting of greenhouse gas emissions more transparent and verifiable, and studies are being carried out for the establishment of a new Sustainability Management System. The Bank aims to use the data obtained in its decision-making and planning processes.
Ziraat Katilim considers energy consumption and emission management among its priority environmental focus areas. The Bank gradually implements practices that support the transition to a low-carbon economy in line with Türkiye's 2053 Net Zero Emission target. Greenhouse gas emissions arising from its operations are monitored, and studies are planned for the calculation of emissions originating from the credit portfolio. The Bank aims to establish a framework aligned with the Science Based Targets initiative (SBTi) for its emission reduction targets and continues its data collection and analysis efforts in this direction.
Ziraat Katilim's climate and sustainability targets are developed in alignment with the Bank's long-term strategic plans, Turkiye's 2053 Net Zero target, the 2nd Nationally Determined Contribution (NDC 3.0), and relevant national policy documents. National and international developments are monitored regularly, and the climate transition plan, which is currently under development, is intended to present the Bank's direct and indirect emission reduction targets in a concrete and data-based manner.
Detailed information can be found in the Sustainability and Climate Targets section of the report.
Climate Change Mitigation and Environmental Adaptation
Within the scope of combating climate change, the Bank offers sustainability-themed retail and commercial loan products. System and process studies are carried out to improve financing conditions for green investments. Green financing products compatible with participation banking principles are developed, and financing is provided for clean energy projects. Projects are also conducted to incorporate climate factors into credit decision-making processes.
Ziraat Katilim offers responsible products and services to its retail and commercial customers by considering the financing of the green transition, reducing dependence on external energy sources, contributing to sustainable development goals, and minimizing environmental impacts. Through the sustainable financing products developed in this direction, the Bank supports a financing structure that takes environmental impact into account.
Detailed information can be found in the Responsible Products and Services section of the report.
Practices are also being developed to ensure that environmental and social impacts are taken into consideration in lending processes. The Environmental and Social Risk Assessment System (ESRA) was established in 2024 to monitor environmental and social risks related to large-scale investment loans and project finance. Through this system, the environmental and social risk profile of the activities subject to financing is evaluated. In addition, in order to strengthen the analysis of water stress, water scarcity, and physical climate risks within the credit portfolio, it is planned to include scientific tools such as the World Resources Institute Water Risk Tool (WRI Aqueduct) and the World Wide Fund for Nature Water Risk Filter (WWF Water Risk Filter) within the scope of ESRA as of 2026.
The List of Non-Financed Activities has been determined based on sectors and business lines that are not accepted at the national and international level from an environmental perspective, as well as those prohibited in line with participation banking principles. The Policy on the Management of Environmental and Social Risks in Financing Activities defines the framework for managing indirect environmental and social impacts arising from financing activities.
Detailed information can be found in the Sustainable Finance section of the report.
Ziraat Katilim has integrated the Integrated Management System module into its ERP system in order to provide a data infrastructure for carbon footprint and water footprint studies. Resource consumption and waste data are collected and monitored through the system. Data entries and reporting related to different locations, including branches and the Head Office, are carried out through this structure. System definitions are being developed for the additional items included in the greenhouse gas inventory as the Bank continues its system improvement efforts.
Environmental management practices are conducted within a framework aimed at reducing environmental impacts arising from operational activities. Energy and resource consumption, waste generation, emissions, and water use are monitored regularly. Practices are being developed to increase energy efficiency, reduce paper consumption, and direct waste to recycling. Projects are carried out to improve energy efficiency and increase the use of renewable energy in internal operations. Corporate processes are established within the scope of the ISO 14001 Environmental Management System.
The Ziraat Katilim Environmental and Climate Change Policy was published on the corporate website in 2023. The policy establishes the main framework for the management of environmental impacts and the Bank's approach to combating climate change. It includes principles aimed at protecting the environment, increasing environmental awareness, and promoting a sense of social responsibility. In line with this policy, the Bank monitors its environmental impacts, develops practices to reduce them, and incorporates related processes into its corporate structure. Training and awareness activities are considered a supportive element in the implementation of policy objectives
Ziraat Katilim Memorial Forest Afforestation Contribution
Deforestation and the increasing number of forest fires in recent years have made efforts aimed at restoring natural areas more critical. Ziraat Katilim supports its environmental impact efforts not only through policies and targets but also through afforestation activities carried out in the field. In this context, sapling planting activities that have been ongoing since 2020 continued in 2025.
Within the scope of the activities carried out for the 10th anniversary of its establishment, 30,000 saplings were planted in afforestation areas, corresponding to ten times the number of employees, on behalf of the Bank's employees.
The initiative was addressed with the understanding of linking corporate awareness on environmental issues with daily practices. The process was carried out with the participation of employees and their families.