Impact Investing and Reports

Instead, impact investing has the potential to reshape the role of capital in society. It demonstrates that significant social and environmental progress can be achieved alongside financial returns. The impact investing market offers diverse and viable opportunities for investors to advance social and environmental solutions while generating financial returns. This approach shows that capital can be a powerful tool for solving the world's most urgent problems rather than merely a means of profit.

Source: GIIN – Impact Investing Guide

Outcome-Based Financing (OBF)

Outcome-Based Financing (OBF) is an innovative and effective financing model that transfers financial risk from traditional stakeholders to investors. Under this model, investors provide capital to social projects with proven success rates to generate social benefits. The effectiveness of these projects is assessed through independent evaluations; when predetermined targets are met, the respective state or local government disburses payments to the investors. Conversely, if projects fail to meet the anticipated outcomes, the investors bear the associated risks and losses.

The OBF model offers a performance-based payment structure while providing funding for social projects. This approach ensures that the state's limited financial resources are used more efficiently, thereby supporting initiatives that create social impact. Through result-oriented payment systems, investors can manage financial risks more effectively while simultaneously contributing to enhanced social benefits. Consequently, active private-sector participation is incorporated into government efforts to address social challenges, yielding both financial and social returns.

Source: Etki Yap

Leading the Way: The Development and Investment Bank of Türkiye (TKYB) Champions Global Impact Investing

The Development and Investment Bank of Türkiye (TKYB) continues to assume a pioneering role in sustainability and impact investing at both national and international levels. The appointment of TKYB’s Vice President and Sustainability Leader, Seçil Yıldız, to the Advisory Board of OPIM (Operating Principles for Impact Management) marks a significant milestone in this domain. By fulfilling its commitments to OPIM, TKYB represents Türkiye on international platforms while contributing to the achievement of global sustainability goals.

In this context, TKYB’s participation in the OPIM Advisory Board is a clear testament to its dedication to developing the impact investing ecosystem and achieving the 2053 Net Zero Emission targets.

To enhance the effectiveness and transparency of its impact investments, TKYB adopts internationally recognized standards such as IRIS+ (Impact Reporting and Investment Standards). IRIS+ is a multidimensional metric system utilized to measure and report the social, environmental, and financial performance of projects. The Bank employs these standards to directly monitor and manage the impact of its projects while transparently communicating the positive outcomes of its investments to stakeholders.

In 2023, TKYB made significant progress in promoting women's social and economic participation. The Bank implemented gender-inclusive situational analysis for each of its projects, utilizing the OECD DAC Gender Marker system for tracking and evaluation. As the first bank to implement this system across all its projects, TKYB is committed to concrete measures to advance women's empowerment by establishing project-specific targets and monitoring their achievement. The Bank remains resolute in its mission to create a positive impact focused on strengthening the economic, social, and societal roles of women.

The Development and Investment Bank of Türkiye distinguishes itself as a leader in sustainable development and impact investing through its financing efforts in renewable energy and its active participation in international initiatives, such as its role on the OPIM Advisory Board. The Bank's commitments in these domains underscore its essential role in shaping both the present and the future.