TSKB shares its experience in financing sustainability in Paris
Members of the International Development Finance Club (IDFC) met at the One Planet Summit held in Paris under the theme of mainstreaming climate finance. TSKB, a member of the IDFC, shared its experience in financing sustainability during the event attended by numerous international finance institutions. Taking the floor at the event, Çiğdem İçel, Executive Vice President at TSKB, said, "The finance sector has a critical role in attaining climate goals. As a member of the IDFC, an initiative with increasing effectiveness in the global arena, we attach great importance to emphasizing our commitment to the 'Climate Action in Financial Institutions Initiative' we support jointly with the leading development finance institutions in the world."
IDFC (International Development Finance Club), to which the Industrial Development Bank of Turkey (TSKB) is a member, organized a series of events during the One Planet Summit held in Paris last week and issued two separate reports under the theme of climate finance.
IDFC members met with a view to mainstreaming the fight against climate change. They underlined their commitment to the Climate Action in Financial Institutions Initiative, which was published by the IDFC during the COP21 back in 2015. The Climate Action in Financial Institutions Initiative incorporates 5 voluntary principles for mainstreaming climate action and intends to guide financial institutions which support low carbon development. TSKB is among the first supporters of the Initiative which focuses on the principles of committing to climate strategies, managing climate risks, promoting climate smart objectives, improving climate performance and accounting for climate action.
"The finance sector has a critical role in attaining climate goals"
Speaking at the conference organized by the IDFC under the theme of mainstreaming climate finance before the One Planet Summit, Çiğdem İçel, Executive Vice President at TSKB, underlined the importance they attach to cooperation, dialogue and experience sharing in the fight against climate change. "Climate action requires investments in a myriad of areas," İçel said. "Infrastructure improvements, renewable power plants, transition to a more efficient level of production at production plants, and sustainable transformation of cities are all considered to fall under such action. Financing is undoubtedly a most important instrument in conducting such projects which are available almost in any part of the world. Therefore, the finance sector has a critical role in attaining climate goals. As the only member from the Turkish finance sector to the IDFC, an initiative with increasing effectiveness in the global arena, we attach great importance to emphasizing our commitment to the 'Climate Action in Financial Institutions Initiative' we support jointly with the leading development finance institutions in the world. We enjoy the opportunity to emphasize - once again - on the international platform the commitment of our Bank in terms of sustainable development."
"Innovative instruments will make difference in climate finance"
Çiğdem İçel went on to provide information on the pioneering work TSKB did in financing sustainability: "For 67 years, TSKB has been working as a bank to serve Turkey's goal for sustainable development. Thus, sustainability is a key item on our agenda. The cooperation we have with the international institutions have enabled us to take innovative steps in sustainability among others. For instance, we issued the first sustainable/green bond in Turkey and the region in 2016 to finance sustainability. This is a key achievement for us. Both the interest in the bond and the investor talks we had and the awards we received reinforced our faith in this trailblazing step. Similarly, we broke another new global ground and issued our subordinated sustainable bond. We believe such innovative instruments will make a great difference in climate finance. Currently, sustainability investments make up 60% of our portfolio. We intend to increase this rate in the upcoming period."
TSKB's sustainability experience reflected in the IDFC report
IDFC issued two separate reports concurrently with the events. During the COP23 last month, IDFC enabled public access over the Internet to the Climate Mainstreaming Practices Database and then launched the 2017 Climate Mainstreaming Practices Report last week. The Report involves case studies on how the 5 Voluntary Principles for Mainstreaming Climate Action are put into practice. The Report also points out to the difference TSKB created through the Sustainability Management System.
Furthermore, 2015-2016 IDFC Green Finance Mapping Report offers a view on the contribution of IDFC members, which have a total asset size of USD 3,500 billion and have committed a total of USD 800 billion in development finance annually, to financing sustainability. The Report also indicates that the climate finance commitments by the IDFC members rose by about 17% to USD 173 billion compared to 2015.
