TSKB Publishes Second Climate Report

1 March 2024
- 4 min. Read

TSKB Remains Committed to Climate Change and Sustainability Efforts

TSKB, an early adopter of climate-related initiatives in Türkiye, has released its second climate report. This follows their initial “Climate Risks Report” for the Turkish banking sector in 2021, which integrated recommendations from the Task Force on Climate-related Financial Disclosures (TCFD). In the report, the Bank outlines its initiatives on climate change and sustainability, highlighting tangible outcomes and making a commitment to cease financing coal projects by the conclusion of 2035 and sharing its objective of delivering USD 4 billion in climate finance by the end of 2030.

With a mission to foster enduring value for Türkiye’s comprehensive and high-quality development, TSKB (Industrial Development Bank of Türkiye) remains steadfast in its dedication to addressing climate change and sustainability and continues to take innovative strides in this field. In 2021, TSKB released its “Climate Risks Report,” marking the first of its kind in the Turkish banking sector. This report assessed the ramifications of climate change through the lens of the Task Force on Climate-related Financial Disclosures (TCFD). The Bank has recently released its second report titled “2023 TSKB Climate Report.” 

The Bank openly communicates its initiatives aimed at addressing climate change-related risks and opportunities. In the report crafted for this purpose, the Bank underscores its unwavering commitment to climate action, outlines its ongoing endeavors and areas for improvement, and offers insights into its future direction.

TSKB CEO Murat Bilgiç: “We assess climate risks and incorporate them into our lending procedures”

Stating that TSKB regards climate change as a primary strategy and key success factor, transcending economic, environmental, and social dimensions, and that the Bank prioritizes supporting Türkiye’s shift towards a low-carbon economy, TSKB CEO Murat Bilgiç said, “Scalable solutions are imperative for our collective future in the field of green transformation, encompassing renewable energy, energy efficiency, climate finance, emission measurement and reduction, adaptation, and circular economy investments. At TSKB, we assess climate risks and incorporate them into our lending procedures. Investments in transformative measures to mitigate climate risks are vital for the future sustainability of our planet. As one of the first institutions in Türkiye to address climate issues, we prioritize investment themes that directly contribute to the UN Sustainable Development Goals and align with our country’s development objectives. Our SDG-linked loans constitute 90% of our portfolio, with our specific target for loans related to climate and environment set at 60%. As of the end of 2023, we have achieved this target, with the realization rate also at 62%. In addition to our sustainable banking approach, we are broadening our impact in this domain by leveraging the expertise accumulated over many years of consultancy. Through Escarus, our subsidiary specializing in sustainability consultancy established in 2011, we extend our experience to various sectors, thus enhancing our contributions to sustainability efforts. Through the synergy of our smart financing options, versatile consultancy capabilities, and collaborative efforts with our business partners, we are achieving tangible success.”

Murat Bilgiç: “We stand firm in our commitment to refrain from financing investments in coal-fired power plants and coal mining for electricity generation”

Bilgiç went on to add, “As part of our efforts to tackle the ecosystem crisis, we stand firm in our commitment to refrain from financing greenfield investments in coal-fired power plants and coal mining for electricity generation. We have revised this objective to encompass investments in capacity expansion, aiming to completely eliminate coal financing by the conclusion of 2035. Through our 2023 TSKB Climate Report, we have conducted a valuable collaborative effort with the aim of presenting the integration of climate change considerations into our banking activities and setting an example for our stakeholders. In the upcoming period, we remain committed to creating enduring value alongside our highly skilled staff and business partners. Together, we will work towards minimizing climate risks and achieving success in this ongoing endeavor.”

TSKB Executive Vice President and Sustainability Leader Meral Murathan: “We aim to provide USD 10 billion in SDG-linked funds”

Highlighting that TSKB's loan portfolio is predominantly comprised of SDG-linked loans, TSKB Executive Vice President and Sustainability Leader Meral Murathan noted, “We aim to provide USD 10 billion in SDG-linked funds between 2021 and 2030. Furthermore, we have set a goal to provide USD 4 billion in climate finance by the end of 2030. As we make steady progress towards our objectives, we are simultaneously engaged in numerous projects. In October 2022, we became a signatory to the Net-Zero Banking Alliance, established by the United Nations Environment Programme Finance Initiative (UNEP FI). With this signature, we commit to aligning our loan portfolio with net-zero emission targets in accordance with the Paris Climate Agreement by 2050. In 2023, we set our near-term science-based goals for 2027 and 2035 approved by SBTi and publicly announced.”

Meral Murathan: “Our Bank’s emission reduction targets were approved by SBTi”

Highlighting renewable energy as one of TSKB’s focus areas, Murathan stated, “We will persistently track the prominent objectives outlined in the United Nations Sustainable Development Goals, which offer crucial guidance in our efforts to combat climate change and enhance adaptation measures. 

The emission reduction targets, calculated by our Bank in accordance with the guidelines of the Science Based Targets initiative (SBTi), were approved by SBTi in 2023. Within the framework of these goals, we actively support the transition processes and decarbonization efforts of our business partners through the financing we provide. Additionally, we are committed to reporting on our performance progress. Therefore, our Bank has obtained approval for and publicly disclosed its greenhouse gas emission targets, which encompass direct emissions from internal operations (Scope 1), indirect emissions from energy supplied (Scope 2), and emissions from the loan portfolio (Scope 3). In addition to these initiatives, we have established a new department the TSKB Climate Change and Sustainability Management Department. This structure will bolster our capacity to enhance and expand upon the sustainability efforts that have been ongoing for many years across various working groups within the Bank.”

To access the TSKB Climate Report 2023, please click here