Sustainability Governance

Ziraat Katilim implements a multi-layered sustainability governance model to ensure the effective management and oversight of sustainability-related matters. Sustainability practices are managed within the framework of the Corporate Sustainability Management System, established under the supervision of the Board of Directors and the leadership of the CEO. The implementation and coordination of these processes are carried out by the Sustainability Committee, Sustainability Coordination Unit and Sustainability Working Groups. Through this governance structure, the Bank aims to strengthen corporate ownership of sustainability at the executive management level.

The Board of Directors is the governance body with ultimate responsibility and the highest level of oversight authority regarding the Bank's sustainability-related matters. The Board approves the Bank's sustainability vision, strategy and policies, and regularly monitors performance in these areas. In this context, the Board oversees the alignment of the sustainability strategy with corporate objectives, reviews the consistency of established policies and targets with the Bank's overall risk appetite, and evaluates sustainability performance through executive management reports.

The Sustainability Committee, composed of senior executives under the chairmanship of the CEO, is responsible for the detailed consideration of sustainability-related matters, the formulation of the strategy and the monitoring of implementation. The Committee ensures the planning of sustainability priorities and targets and reports developments to the Board of Directors on an annual basis.

The Committee convenes twice a year or when deemed necessary upon the call of the Chair. Decisions are taken by majority vote and are reported on a regular basis. Where required, relevant department heads are invited to attend Committee meetings.

Following a resolution adopted at the Sustainability Committee meeting held in 2025, a member of the Board of Directors was included in the Sustainability Committee; no changes were made to reporting processes or role definitions. During the reporting period, the Sustainability Committee adopted a total of 11 resolutions, primarily focusing on sustainability reporting, climate strategy, collaborations, energy efficiency practices and sustainability-themed external funding.

Members of the Sustainability Committee

• General Manager (President)
• Member of the Board of Directors
• Deputy General Manager
• Group Heads
• Head of Strategy Planning Department (Sustainability Coordinator)
• Head of Risk Management Department
• Head of Corporate Communications Department
• Head of International Banking Department
• Head of Project Finance and Financial Partnerships Department

Roles and Responsibilities of the Sustainability Committee

• Ensuring the coordination of action plans and activities to be developed within the scope of the Bank's sustainability strategy, vision and objectives
• Establishing and, where necessary, updating the Sustainability Policy and its complementary policies, and ensuring their integration into all business processes
• Managing environmental, social, governance and economic risks and opportunities, including climate change-related risks and opportunities that may arise from financed projects and other lending activities
• Monitoring national and international regulations and standards regarding environmental and social risks that are material to the Bank's lending processes
• Identifying areas of cooperation and relevant institutions to further develop the Bank's sustainability network
• Promoting the internalization of sustainability-focused practices across the Bank and supporting capacity building
• Supporting the development of social responsibility initiatives
• Monitoring and integrating activities related to banking products and processes that contribute to sustainable development
• Managing direct and indirect environmental and social impacts, monitoring actions aimed at reducing these impacts, and managing risks that may adversely affect Ziraat Katilim's reputation
• Ensuring effective communication regarding sustainability-related activities conducted within the Bank
• Defining the roles, authorities and responsibilities of the Sustainability Coordinator and other sub-working groups to be established
• Evaluating sustainability-related measurement and reporting processes, reviewing and approving sustainability-related sections of the annual report
• Ensuring that all decisions taken and projects implemented within the framework of the Bank's sustainability management system are aligned with Ziraat Katilim's other policies and relevant regulations

The coordination of sustainability related activities is carried out by the Sustainability Department, operating under the Sustainability Coordination function. As of 2025, the sustainability function has been restructured as an independent Service Management Unit, separated from the Strategy Planning and Sustainability Department structure. Within the Bank, the Head of the Strategy Planning Department has been appointed as the Sustainability Coordinator, and sustainability-related activities are reported to the Committee through this structure.

Roles and Responsibilities of the Sustainability Coordination Function

• Providing analysis and guidance for sustainability-related activities across the Bank
• Monitoring sustainability initiatives within the Bank and reporting progress to the Committee
• Managing consultancy services and projects related to sustainability
• Ensuring coordination among Sustainability Working Groups
• Participating in sustainability-related initiatives conducted with regulatory authorities and sectoral associations

Through six working groups operating under the Sustainability Coordination function, employees from 34 different service units across the Bank are involved in the process. Representatives from relevant functions are appointed to each working group; this structure strengthens interdepartmental communication and facilitates the integration of environmental, social and governance (ESG) factors into the Bank's business model.

Sustainability Working Groups • Areas of Responsibility

Sustainability Corporate Governance Working Group

• Updating sustainability policies
• Conducting internal reviews of sustainability practices
• Ensuring coordination of sustainability reporting processes

Corporate Social Responsibility and Training Working Group

• Identifying corporate social responsibility project themes and implementing projects aligned with these themes
• Taking part in sustainability-related events and providing sponsorship support
• Organizing sustainability training programs across the Bank and strengthening internal capacity

Operational Environmental Impacts Working Group

• Planning and monitoring energy and environmental management practices in Bank buildings
• Establishing and maintaining the greenhouse gas inventory covering emissions arising from the Bank's own operations
• Conducting sustainable supply chain initiatives

Indirect Environmental Impacts Working Group

• Ensuring the implementation of the environmental and social risk assessment system for project finance activities
• Conducting consultancy, project monitoring and reporting activities related to environmental and social risk assessments
• Performing environmental and social impact analysis of the financing portfolio

Sustainable Sukuk and Products Working Group

• Establishing and updating the sustainable finance framework
• Developing sustainability-themed financing products
• Supporting sustainable sukuk and other sustainable funding initiatives

Climate Risks Working Group

• Ensuring the measurement and management of climate-related risks
• Supporting the integration of climate risks into the risk management system
• Monitoring financed portfolio emissions

Sustainability Training

In order to strengthen sustainability governance and enhance institutional awareness, regular training activities are conducted across the Bank. Sustainability training programs delivered annually to employees cover key topics such as the concept of sustainability, the corporate sustainability approach, evolving sustainability agendas in Türkiye and globally, leading international sustainability initiatives in the financial sector, climate change-related risks and opportunities, and the principles of sustainability and responsible banking.

As of 2025, a total of 2,427 employees successfully completed the mandatory sustainability training modules assigned through the Ziraat Katilim Academy.

Including other sustainability-related training programs available via the Ziraat Katilim Academy, a total of 7,614 hours of sustainability training were delivered to 3,354 participants. In addition, 290 newly recruited employees received classroom-based sustainability training sessions. Online sustainability training programs were delivered under the titles Sustainability Training, Sustainability and Green Transformation, and Sustainability and Participation Banking. Furthermore, within the scope of the Management Candidate Program (YÖNAP), training sessions titled Strategy and Sustainability were organized in 2025 with the contribution of the Head and managers of the Strategy Planning Department. These initiatives significantly contribute to strengthening the Bank's institutional capacity in sustainability and enhancing employee competencies in this area.