Environmental and Social Risk Evaluation
TSKB created the ERET – Environmental and Social Risk Evaluation Model (Environmental Risk Evaluation Tool), a first in Türkiye, in 2005. Since then, we have calculated the environmental and social risk ratings of investment projects and included them in our loan processes.
ERET, our environmental risk assessment model in which we score projects by seeking answers to 45 topics, was developed at TSKB on a voluntary basis and brought into practice.
Our Engineering and Technical Advisory teams, which evaluate projects in coordination with TSKB's Financial Advisory department, evaluate the environmental and social impacts of each project in addition to its technical feasibility.
Environmental and social impact evaluation is carried out by analyzing all possible impacts that will occur with the project, regardless of project’s investment amount.
Our model is based on a current and prospective study of the environmental impacts and possible legal and financial liabilities arising from the investment project evaluated by TSKB for lending purposes and other activities carried out by the project owner.
In cases where the environmental risk exceeds the average and/or the risk is found to be high, a structural plan is prepared in cooperation with the customer setting out steps to mitigate and monitor the environmental impacts of the projects.
The environmental scoring methodology of the ERET Model is constantly reviewed by the TSKB teams. In accordance with the changing conditions, the weight of high-risk subjects is increased in the calculation process, so areas which pose a risk are highlighted.
THE TSKB ERET RESULTS
| 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Risk Category (Company) | |||||||||||
| A | 1 | 9 | 5 | 5 | 5 | 4 | 3 | 5 | 2 | 1 | 3 |
| B+ | 10 | 9 | 13 | 18 | 16 | 15 | 14 | 16 | 17 | 22 | 28 |
| B- | 22 | 42 | 40 | 36 | 22 | 31 | 16 | 19 | 23 | 30 | 31 |
| C | 31 | 27 | 21 | 60 | 17 | 2 | 3 | 3 | 3 | 6 | 7 |
| Risk Category (Project) | |||||||||||
| A | - | 6 | 3 | 2 | 3 | 3 | 4 | 3 | 2 | 2 | 1 |
| B+ | 7 | 7 | 9 | 15 | 18 | 13 | 11 | 21 | 11 | 34 | 21 |
| B- | 24 | 47 | 48 | 63 | 25 | 23 | 18 | 32 | 28 | 19 | 51 |
| C | 33 | 27 | 19 | 39 | 14 | 13 | 3 | 6 | 4 | 48 | 24 |
| Number of Project | 64 | 87 | 79 | 119 | 60 | 52 | 36 | 62 | 45 | 103 | 97 |
