TSKB publishes its “Climate Risks Report” in line with the TCFD recommendations to break new ground in the Turkish banking sector
TSKB positions combating climate change and climate adaptation among its strategic focuses. As one of the leading Turkish institutions supporting the Task Force on Climate-Related Financial Disclosures (TCFD), TSKB has recently published its first Climate Risks Report. Aiming to finalize the end-to-end integration of climate risks in its loan portfolio by 2023, TSKB prioritizes keeping the weight of SDG-linked loans within the total portfolio at 90% until 2025.
Working on a mission to create value for Turkey's inclusive and sustainable development, the Industrial Development Bank of Turkey (TSKB) continues to focus on policies regarding combating climate change and climate adaptation.
As one of the leading institutions supporting the Task Force on Climate-Related Financial Disclosures (TCFD), TSKB has published the first “Climate Risks Report” in the Turkish banking sector that takes into account TCFD recommendations while strategically enriching its sustainability journey at the same time.
In its Climate Risks Report, TSKB has declared climate-related risks and opportunities and underlined its commitment to continue supporting Turkey's transition to a low-carbon industry apace.
TSKB has been offsetting its GHG emissions from its operations since 2008 to deliver carbon-neutral banking services. The Bank now uses this report to expand its activities in line with science-based targets.
TSKB has announced a reduction target of 63% by 2035 as part of Scope 1, which expresses direct emissions, and has signaled its intention to continue offsetting its carbon emissions by solely using renewable energy in its operations under Scope 2, which focuses on emissions from electricity consumption. For value chain emissions under Scope 3, TSKB takes national and international standards into consideration to develop its roadmap.
TSKB shared its goal of finalizing the assessment of its portfolio in terms of climate risks in loan evaluation, allocation and monitoring processes until 2023. Aiming to provide financing worth USD 8 billion in relation to the Sustainable Development Goals (SDGs) as set forth by the United Nations until 2030, TSKB prioritizes keeping the share of SDG-related loans in its total portfolio above 90% between 2021 and 2025.
"We make a significant contribution to Turkey's transition to a low-carbon industry"
Ece Börü, TSKB CEO, stated that they transparently included in the Climate Risks Report their efforts and goals in combating the climate crisis. “After signing the United Nations Global Compact in 2010, we have come a long way in our sustainable banking journey that puts the SDGs at its center. Today, 74% of our loan portfolio consists of sustainable and social investments such as clean energy, energy and resource efficiency, environment and women's employment and makes a concrete contribution to Turkey's transition to a low-carbon industry."
"The contribution of the financial sector to the success of green recovery process stands out as a critical factor"
Börü said the goal of net zero carbon emissions by 2050, an objective led by the United Nations, had been adopted by an increasing number of states and organizations. "We know that we have entered a critical period in terms of climate targets. Extraordinary developments such as recent natural disasters and pandemics around the world increase the importance of green recovery and accelerate steps towards a future decarbonization of global markets. In the process, companies, financial institutions, even individuals, and particularly governments and regulatory institutions have different responsibilities. In the world of business, economy and production, it is highly critical to create road maps correctly and to formulate action plans quickly. As a development bank that has specially concentrated on sustainability and climate, we are first-hand witnesses of the transformative power of finance. We believe that a green financial system and the structured contribution by financial sector players to ensure such system all over the world are critical success factors in a sustainable and resilient recovery process."
"A global struggle and decisive steps are required to solve the climate crisis"
Börü said the pandemic underlined the concept of sustainability. "We know that Environmental, Social and Governance (ESG) issues are just as important as financial issues. A global struggle and decisive steps are required to solve the climate crisis, as in the pandemic process. For the last 30 years, we have internalized sustainability from one end to the other in all our business processes starting from our vision. We are proud to be an institution differentiating itself in responsible banking thanks to our global business relationships, the initiatives we are a part of, and the innovative practices we have implemented. Our Climate Risks Report marks another major step towards integrating climate risk awareness into our banking model. We are aware that this is a journey. In the upcoming period, we will continue to work with our business partners in unison, without a pause, to mitigate climate risks."
Click here for TSKB's Climate Risks Report.
