The Non-Financed Activities List has been established based on activities that are not accepted at national and international levels from an environmental perspective, as well as sectors and business lines prohibited under participation banking principles. Through this list, it is aimed to ensure that the Bank's financing activities are carried out in alignment with a responsible banking approach across environmental, social, and ethical dimensions.
Participation in the Strength of the Economy
Sustainable Finance
The sustainable finance approach is shaped within the framework of participation finance principles, with the objectives of supporting employment and economic development by providing funding to the real sector, considering environmental impacts, and enhancing social benefit. In this context, while carrying out financing activities, supporting economic development, protecting the environment, and creating long term value for stakeholders are among the key priorities. Ziraat Katilim's sustainable finance strategy is structured in line with Türkiye's national targets and global shared values.
Within this framework, the main objectives in the field of sustainable finance are defined as follows:
- Contributing to the country's sustainable economic Development
- Supporting the achievement of the Sustainable Development Goals
- Considering environmental and social impacts in financing activities
- Supporting customers' green transformation processes
- Promoting participation banking in line with responsible and ethical banking principles
Processes carried out within the scope of sustainable finance, including system development efforts, future planning, and analytical activities, are coordinated by the Sustainability Department under the Strategy and Planning Division.
Within the scope of sustainable finance activities, national and international regulations directly related to the banking sector, best practices, and sectoral developments are closely monitored.
In this context, peer analyses are conducted to assess how and when the Bank should position itself in practice, while compliance with relevant legislation and regulations is coordinated across all units.
The main national and international regulations, standards, and frameworks monitored and subject to compliance efforts in the field of sustainable finance are presented below:
Sustainable Sukuk Framework
The Sustainable Sukuk Framework, prepared in 2024 to articulate the Bank's sustainable finance approach and to serve as a basis for sustainability themed funding instruments, comprehensively defines the themes and categories under which environmental and social products offered by the Bank are classified, as well as their areas of use, financing conditions, beneficiary groups, and excluded activities.
This framework constitutes the main reference for sustainability and climate themed products and services developed in line with the Bank's sustainable finance approach. By aligning financial products and services with this framework, it is aimed to measure their contributions to the Sustainable Development Goals, along with the expected environmental and social benefits.
The development, updating, and monitoring of the Sustainable Sukuk Framework and related products and services are carried out under the coordination of the Sustainability Department, Investment Banking Department, and Financing Products Management Department. As of 2025, no new fund utilization product has been developed within this scope.
Environmental and Social Risk Assessment System (ESRA)
The Environmental and Social Risk Assessment System was established in 2024 to monitor environmental and social risks related to large scale investment loans and project finance. Within the scope of the system, environmental and social risk assessments are conducted on a sector independent basis for projects with an investment amount of USD 20 million or above that are not included in the Exclusion List. Impact based scoring is carried out for both the customer and the related projects. This scoring is classified into three categories: High (A), Medium (B), and Low (C).
Non-Financed Activities List
The Environmental and Social Risk Management Policy in Financing Activities, provides a systematic approach to managing the indirect environmental and social impacts arising from Ziraat Katilim's financing activities. In line with this approach, the Bank focuses on minimizing potential adverse effects stemming from environmental and social risks and conducts its financing processes in accordance with the Non-Financed Activities List, which forms an integral part of the Policy.
The overall oversight of the Policy is carried out by the Sustainability Committee, as well as the Inspection and Internal Control units. While the Sustainability Department is responsible for maintaining the policy's relevance and overall monitoring, teams responsible for company analysis, project analysis, credit allocation and management, banking sales, and product management play an active role in the integration of practices and execution of operational processes.
For investment and project finance loans subject to environmental and social risk assessment, the progression, monitoring, and documentation of the required processes are carried out by the Project Finance and Financial Partnerships Department, together with the relevant Credit Allocation and Management Department.
For the analysis of investment loans, a standard workflow form is created based on Environmental Impact Assessment (EIA) reports and related supporting documents. For projects classified under environmental and social risk categories A and B, action plans are prepared with the support of consultants.
Through integration efforts carried out by the Company Analysis Department in collaboration with Ziraat Technology, processes that were previously conducted manually have been largely automated, thereby enhancing operational efficiency.
Within the scope of the ESRA, concurrent efforts are being carried out in three main areas: strengthening the system infrastructure, improving product based processes, and enhancing staff competencies. In addition, evaluation and development efforts are ongoing to integrate climate risk indicators into extended loans. Following the disbursement stage, risk management processes are activated, enabling the monitoring and management of environmental and social risks.
The number of projects financed under the ESRA more than doubled compared to the previous year, reaching 27. The number of projects financed by risk category, along with their respective sectors and investment amounts, is presented below:
Sectoral Distribution of Projects Assessed under the ESRA
In 2025, organizational and process improvement efforts were continued for the preparation of action plans for projects classified under the high-risk category and for the monitoring of risks throughout the maturity period.
