TSKB Environmental and Social Risk and Impact Management Policy

• Regardless of the investment size and/or credit limit, observes internationally recognized environmental and social impact assessment standards in the finance sector as well as national legislation in the environmental and social risk and impact assessment work for investments as part of credit assessment and monitoring efforts,
• Determines the actions to be taken to manage environmental and social impacts in all investment loans financed in accordance with national legislation and internationally recognized standards, 
• Does not approve loan applications in cases where the environmental and social negative impacts thereof are found to be very high, unmanageable and irreversible as a result of environmental and social risk assessments for investment and working capital loans on a project and customer basis,
• Analyzes the biodiversity impacts of the customer and the investment in all investment and working capital loans to be financed and requests the companies to take measures for biodiversity conservation if deemed necessary and monitors them regularly throughout the term of the loan.
• Assesses potential environmental and social risks and impacts in investment loan projects against the national and international framework, and applies the TSKB Environmental and Social Risk Assessment Model (ERET) to all projects. The ERET model assigns a risk category of A (high), B+ (medium-high), B- (medium) or C (low) to each project it is applied to. In line with the assigned risk category, the Bank ensures that investors take measures to prevent or mitigate these impacts, develop an Environmental and Social Management Plan when necessary, and implement the identified actions at all stages of the projects. The Environmental and Social Management Plan and all related monitoring programs are included in the loan agreement as a condition of the loan agreement with the customer. It closely monitors the implementation of the projects financed within this framework by following up with them at regular intervals.
• Uses the TSKB Environmental and Social Risk Assessment Model to measure the environmental and social risks and impacts of all loan customers receiving cash loans, requests them to take corrective action when deemed necessary, and monitors the environmental and social performance of its customers.
• Undertakes that the activities prohibited and/or restricted by national legislation and international conventions to which Türkiye is a party as well as the activities within the scope of the List of Activities That Are Not to Be Financed (Annex-1), which is created by taking into account the Bank's working principles and is approved by the Board of Directors, shall not be financed regardless of amount and without being subject to environmental and social impact assessment.
• Evaluation and monitoring findings shall be shared annually with senior management and within the Bank. 

2. monitors its direct and indirect environmental and social impacts in accordance with the TSKB Sustainability Management System established in accordance with the ISO14001 Environmental Management System and ISO14064-1 Greenhouse Gas Emissions Calculation and Reporting Standard, takes measures and sets targets to prevent and/or, if not possible, mitigate the impacts. To this end, the Bank takes all measures for energy and water efficiency in its buildings and makes the necessary investments. It monitors energy, waste and water consumption and sets targets for the reduction of energy and water consumption amounts. It separates wastes according to their classes (domestic waste, hazardous waste, e-waste, recyclable plastic, paper, glass, etc.) and sends domestic waste to municipal waste collection vehicles and other wastes to licensed companies as stipulated in the Turkish Environmental Legislation. It reviews the performance results annually, submits them to the Sustainability Management Committee and shares them with all stakeholders through the relevant reports published annually.

3. takes special care to ensure that all consumables and fixed assets supplied are environmentally friendly and/or recyclable, serving the protection of natural resources. It makes sure that the producers and sellers of these materials take environmental protection measures, adopt energy and resource efficiency practices and have certificates such as ISO 14001-14064.

4. informs customers and relevant stakeholders about sustainability matters, particularly climate change and biodiversity conservation, and supports and encourages them to establish sustainability policies and programs.

5. monitors, responds to and regularly reports to senior management all complaints, suggestions and questions received from internal and external stakeholders regarding the direct and indirect environmental and social impacts of the Bank through the grievance management system. 

6. The implementation and performance of this policy is monitored under the supervision of senior management and the Board of Directors.

D. ENTRY INTO FORCE

This policy shall enter into force on the date it is approved by the Board of Directors.

List Of Activities That Are Not To Be Financed - Annex-1 click here to access