Sustainability Strategy and Approach

Sustainability constitutes one of the fundamental building blocks of Ziraat Katilim's strategic roadmap. Through the policies established by the Bank and its sustainability governance structure, environmental, social and governance (ESG) dimensions are taken into account in strategic decision-making processes, and a perspective that prioritizes sustainability is adopted across all business lines.

The sustainability approach is integrated into the Bank's activities across a wide range of areas, from lending processes to risk management, and from operational processes to product development. In this way, the Bank aims to effectively manage the environmental and social impacts arising from its activities, assess climate-related risks, and further develop sustainable financing practices.

Throughout this process, national and international developments are closely monitored, and analytical studies are conducted in line with climate-related regulations, sector practices and emerging best practices.

The Bank's sustainability strategy is designed in alignment with Türkiye's 2053 Net Zero target, the 2nd Nationally Determined Contribution (NDC 3.0) and the Green Deal Action Plan and is integrated into the Bank's strategic planning processes. Accordingly, a structured approach aligned with the Bank's strategic planning is adopted, taking into account the development of the climate transition plan, clarification of stakeholder expectations, sector-wide experience and national climate targets.

At Ziraat Katilim, sustainability and climate change have been identified as priority and strategic project areas within the scope of the 2022'2025 Strategic Plan. In this context, short-, medium- and long-term action plans are being developed in alignment with strategic objectives. Through these efforts, the Bank aims to further integrate its sustainability approach into corporate processes and strengthen its implementation capacity.

2022"2025 Strategic Plan " Priority Objectives and Focus Areas

2023 activities

• Establishment of the sustainability governance structure through committees, coordination functions and working groups
• Development of the Sustainability Policy, Policy on the Management of Environmental and Social Impacts in Financing Activities, and the Environment and Climate Change Policy
• Delivery of awareness and functional training programs on sustainability and Environmental and Social Risk Assessment
• Identification and prioritization of the Bank's sustainability focus areas
• Development of sustainability-themed financing products in retail and commercial business lines

Retail
- Energy Efficiency Management Financing
- Retail Energy Efficiency Financing
- Green Housing Financing
- Green Vehicle Financing

Commercial
- Solar Power Plant (SPP/Rooftop SPP/Licensed SPP) Investment and Operating Financing
- Energy Efficiency Investment and Operating Financing
- Renewable Energy Investment and Operating Financing
- Wastewater Treatment and Recycling Investment and Operating Financing

2024 activities

• Offering Environmental Loan Products to customers within the scope of sustainability-themed financing
• Establishment of the Sustainable Sukuk Framework
• Development of the Environmental and Social Risk Assessment mechanism
• Establishment of a data collection module for greenhouse gas inventories and its integration into the Enterprise Resource Planning (ERP) system
• Calculation of Scope 1 and Scope 2 greenhouse gas emissions
• Definition of sustainability-related metrics and environmental and social performance indicators
• Development of the climate strategy and creation of a climate heat map within the scope of climate risk measurement
• Establishment of the Ziraat Katilim Memorial Forest

2025 activities

• Inclusion of climate risks in the risk catalogue and establishment of risk appetite indicators
• Green Asset Ratio (GAR) reporting studies
• Publication of the TSRS-aligned Sustainability Report

Within the framework of the 2022'2025 Strategic Plan, significant progress has been achieved in integrating environmental and social risks into financial processes, measuring climate-related risks and developing sustainable financing instruments. In addition, preparatory activities related to the development of the climate transition plan, designed to support long-term planning aligned with climate change considerations, continued throughout 2025.

Ziraat Katilim discloses its sustainability and climate change-related activities, its performance in this area and its future targets to the public through its TSRS-aligned Sustainability Report, which is published on an annual basis.