TSKB has signed IDFC’s Climate Action

The Industrial Development Bank of Turkey (TSKB) has announced that it will support five voluntary principles that were initiated by International Development Finance Club (IDFC) with the aim of mainstreaming climate action within financial institutions

Integrating sustainability to its entire business model from management strategies to lending activities, TSKB is supporting 5 voluntary principles, which take part within the scope of “the Climate Action” that was acknowledged by IDFC (International Development Finance Club), with the consciousness that the climate change is posing a threat to sustainable investment and development.

Aforesaid 5 principles were prepared by IDFC member national, regional and international development institutions, including multilateral development banks that work with the mission of global development. With the “Climate Action”, which was signed on December 7th, 2015 in Paris, worldwide 26 financial institutions, with a combined balance sheet size of $11 trillion, are undertaking to integrate climate into the core investments and advisory functions.

Voluntary Principles that take part in the “Climate Action”;

1. Commitment to climate strategies points out senior management that enables integrating climate change subjects of financial institutions to lending and consultancy activities, clear strategic priorities, commitments to institution policies in this field and objectives.

2. Managing climate risks requires taking precautions together with customers to not be affected by the climate change and to improve the sustainability of investments in the long term by utilizing institutions portfolio, product plan and new investments.

3. Promoting climate smart objectives anticipates supporting approaches that aim creating instruments, tools and information intended for overcoming risks and obstacles for low-carbon emission investments that are not affected by the climate change.

4. Improving climate performance principle enables institutions to monitor, control and improve lending and consultancy practices that support green investments, climate related asset allocation and indications that are connected to climate change priorities such as climate footprint.

5. Within the frame of accounting for climate action, it is expected from institutions to account for their climate actions and be transparent about matters such as green energy, energy efficiency, the financial increase they ensure to other activities related to climate and investments.

While making a statement about the “Climate Action” which they support, TSKB Executive Vice President Çiğdem İçel said “As a bank that integrates sustainability to its entire processes from lending activities to social responsibility projects, we are working for our country’s transition to low-carbon economy within the frame of our development mission. For this purpose, we are bringing the funds that we supply together with sustainable investments such as renewable energy, energy and resource efficiency. Besides, we are Turkey’s first carbon neutral bank since 2008. As the only Turkish financial industry member of IDFC, we are pleased to having highlighted our bank’s commitment to sustainable development once more on an international platform by signing the “Climate Action” with 26 major development financing institutions.”