TSKB Accelerates Future Steps with Responsible Sustainability Communication after COP27
Making significant contribution to the national economy and the transformation of the real sector with its sustainable and inclusive banking vision, TSKB broke new ground in Türkiye with its Responsible Sustainability Communication Policy published just before COP27. Within the scope of COP27, the Bank actively participated in panels on climate-related risks and the role of the financial sector in Türkiye, low-carbon economy, gender equality and sustainable infrastructure investments, and shared important information closely related to Türkiye’s sustainability agenda after the summit. TSKB CEO Murat Bilgiç referred to the concept of ‘greenwashing’ that was a highlight at the COP27 and stated that the Bank has taken a pioneering step with its Responsible Sustainability Communication Policy, and went on to add, “In this new era when we need to accelerate our steps towards a sustainable future, Greenwashing tactics need to give way to concrete and measurable solutions and real success stories. With our Responsible Sustainability Communication Policy, which we have prepared to serve as a guide, we aim to raise awareness in all sectors to differentiate the value-added steps taken for a sustainable future.”
The 27th Conference of the Parties (COP27) of the United Nations Framework Convention on Climate Change (UNFCCC) took place this year in Sharm El Sheikh, Egypt. TSKB (Industrial Development Bank of Türkiye) participated in the conference where topics such as low carbon economy, gender equality, sustainable infrastructure investments, climate-related risks in Türkiye and the role of the finance sector were discussed. After COP27, which TSKB attended with a large delegation of representatives from all relevant departments, the Bank shared important information regarding the sustainability agenda of the world and Türkiye.
“Reporting sustainability performance according to globally recognized standards is the most critical tool of responsible sustainability communication”
Underlining the concept of greenwashing, one of the highlights at the COP27, TSKB CEO Murat Bilgiç said, “We see companies creating misleading perceptions among consumers and business partners through communication channels without fulfilling sustainability requirements as one of the biggest obstacles to qualified green transformation. In this new era when we need to accelerate our steps towards a sustainable future, Greenwashing tactics, which have actually been in use for a long time, need to give way to concrete and measurable solutions and real success stories. With our Responsible Sustainability Communication Policy, which we have prepared at TSKB to serve as a guide, we aim to raise awareness in all sectors to differentiate the value-added steps taken for a sustainable future. In order to transition to a production and consumption approach that is resilient to climate risks and protects the environment, natural resources and biodiversity, all institutions need to address the economic, environmental and social consequences as a whole. It is also important to closely monitor the positive and negative impact created by all elements of capital, whether financial or non-financial. For sustainability projects to truly contribute to our planet, they must have a measurable positive impact in all aspects. Therefore, we see reporting sustainability performance according to globally recognized standards and periodically presenting it to all stakeholder groups as the most critical tool of responsible sustainability communication. We hope that this policy will inspire all brand and communication professionals and green-collar workers.”
“As TSKB, we will continue to make tangible contribution to our country’s Net Zero target with our medium and long-term resources and consultancy power that support the sustainability transformation we provide from development finance institutions”
Murat Bilgiç pointed out that while it was discussed at COP27 that emissions should be halved by 2030 in order to meet the global warming target of 1.5 degrees Celsius, the steps taken in the world are somewhat lagging and said, “As TSKB, we closely followed COP27 with a very large delegation participated by our relevant colleagues. At this summit, where important agenda items for Türkiye and the world were discussed, TSKB set itself a lot of tasks to add a different dimension to its sustainability-oriented efforts. On the Turkish side, we see the most important issue as updating the Nationally Determined Contributions (NDC) after the 2053 Net Zero target was announced last year. A multidimensional approach is necessary for the success of climate action. In this process where the finance sector plays a key role, as TSKB, we will continue to make tangible contribution to our country’s Net Zero target with our medium and long-term resources and consultancy power that support the sustainability transformation we provide from development finance institutions.”
Pointing out that the UN Sustainable Development Goals are at the core of TSKB’s banking model and that all targets are SDG-based, Bilgiç added, “We aim to provide USD 8 billion of Sustainable Development Goals-related financing by 2030. We plan to keep our SDG-linked loan ratio at 93 percent until 2025. Our target for SDG-related loans related exclusively to climate and environment is 62 percent. On the other hand, in all of our investment and operating loans, we conduct environmental and social risk assessments in parallel with financial and technical assessments. For this, we use a model we developed ourselves and call ERET. Based on our initial findings, we identify the issues that need to be managed and the actions that need to be taken.”
Indicating that in 2021 they published the first Climate Risks Report of the finance sector within the framework of the Task Force on Climate-related Financial Disclosures (TCFD), Bilgiç concluded, “We continue to integrate climate risks into our loan processes and measure the risks in this context at the allocation stage with the model we have developed. In October, we became a signatory of the Net-Zero Banking Alliance established by the United Nations Environment Programme Finance Initiative. With this signature, we commit to align our loan and investment portfolio with zero emission targets by 2050. We also cooperate with the Science Based Targets initiative to this end.”
Highlights of COP27 from TSKB’s Perspective:
-According to the Global Carbon Budget study, global emissions are expected to increase by 1 percent to 40.6 billion tons this year. The study points out that if these emission levels continue, there is a 50 percent chance that global warming will exceed the 1.5 degree threshold within 9 years.
- According to the new Nationally Determined Contributions announced by the Minister of Environment, Urbanization and Climate Change, Mr. Murat Kurum, Türkiye’s emissions will peak in 2038, after which emissions will start to decline and reach the net zero target in 2053. The target emission value for 2030 indicates a reduction from 41 percent increase compared to the business-as-usual scenario.
-The amount of global investment needed annually to transition to a low-carbon economy is estimated at between USD 4 to 6 trillion.
-According to the estimates of the Climate Policy Initiative (CPI), annual average global climate financing amounted to USD 632 billion in 2019-2020.
-COP27 highlighted that increased indebtedness rates after the pandemic, recently rising interest rates, stagnation of the global economy, energy crisis, food prices and increasing inflationary pressure have created a challenging macroeconomic conjuncture, especially for developing countries.
-As a reflection of both the financing gap and the macroeconomic conjuncture, financing demands were voiced loudly at the summit and were reflected in the final decision text.
-The issue of the reform of the Multilateral Development Banks (MDBs) was included for the first time in the final decision text with the approval of all parties. In the near term, the Climate Club announced by the G7 to be established at the end of 2022, the finalization of the Carbon Cap Regulation in December 2022, and the restructuring of multilateral development banks at the IMF-World Bank meetings in April 2023 will continue to be closely monitored.
