Environmental and Social Development 

Development Banking and Our Environmental, Social, and Governance (ESG) Approach

As the Development and Investment Bank of Türkiye, we are committed to implementing substantial initiatives designed to create and deliver financial products and services that support our nation's pursuit of sustainable development goals. In alignment with our Development Banking activities, we:

• Diversify financial instruments tailored for priority sectors identified in national development strategies, specifically those characterized by trade deficits or high import dependency, while focusing on sectors that promote employment and contribute to foreign currency earnings.
• Offer optimal financing solutions through investment banking services and credit facilities customized to the financial structure and cash flow of projects, with the goal of fostering Türkiye’s sustainable growth and encouraging domestic investment.
• Support initiatives aligned with the Sustainable Development Goals, including the transition to a low-carbon economy, efforts to combat climate change, the promotion of responsible production and consumption, poverty eradication, and the protection of our planet.

The strategic objectives of our Bank are established in accordance with financial projections reviewed annually and developed in harmony with the vision, mission, and values that underpin our Strategic Plan, and are subsequently approved by the Board of Directors.

These strategic objectives enhance the Bank’s capacity to develop financing models that directly contribute, both technically and financially, to economic growth and sustainable development within the scope of development banking. By offering customized credit structures and innovative financial instruments that address sectoral needs, our Bank fosters the financial sustainability of projects and supplies the necessary resources to expedite the transition to a low-carbon economy. Furthermore, our financing strategies, driven by in-depth sectoral analyses, facilitate the implementation of projects designed to mitigate Türkiye’s import dependency, augment foreign currency earnings, and expand employment opportunities. These approaches ensure that development banking plays a critical role in achieving Türkiye’s long-term economic goals.

Guided by a commitment to Responsible Banking, our Bank conducts Environmental and Social Risk Assessments (ESRAs) as an integral part of its routine decision-making for all lending activities, analyzing the risks of both clients and projects. Managed in compliance with the “Procedure for Environmental and Social Risk Assessment in the Lending Process,” the ESRA entails the identification of the environmental and social impacts (direct, indirect, and cumulative) associated with the construction and operational phases of an investment or project, the evaluation of these impacts, and the formulation of mitigation measures for any adverse effects. Regardless of the loan amount, the activity for which financing is requested is systematically reviewed against the Excluded Activities List (EAL) outlined in our Environmental and Social Risk Policy.

Our Bank is dedicated to enhancing Türkiye’s energy supply, reducing fossil fuel consumption, and external dependency in the energy sector through the financing of projects (such as solar and wind) aimed at ensuring the efficient utilization of renewable energy sources and the integration of domestic resources into the economy. By financing projects that improve energy and resource efficiency and optimize waste management for firms operating in energy-intensive sectors, such as cement, iron and steel, paper, and ceramics, our Bank makes significant strides toward achieving sustainable economic objectives.

In alignment with our environmental sustainability goals, we contribute to reducing fossil fuel consumption and greenhouse gas emissions while promoting increased recycling rates through financial incentives for heat recovery, wastewater treatment technologies, and modernization investments.

In the tourism sector, our Bank finances the renovation of existing facilities while also supporting projects that enhance building energy efficiency. This approach significantly contributes to the development and preservation of sustainable tourism.

We also offer investment loans to meet clients' long-term financing needs, and/or working capital loans for short-term requirements. Within this framework, investment projects can be financed through corporate loans or Special Purpose Vehicles (SPVs), or long-term investment loans can be structured as corporate loans using existing balance sheets. Applications are submitted to the Corporate Banking and Project Finance Unit, and credit is allocated upon approval by our Bank.