Garanti BBVA Has Announced Its Interim Decarbonization Targets In Line With Net Zero Banking Commitments!
As part of Garanti BBVA’s combat against the negative impacts of climate change
In 2021, has been the first bank from Türkiye to pledge coal phase-out. The Bank has committed to not financing new investments regarding coal fired power plants and coal mining activities and reducing coal exposure of its portfolio to zero by 2040 or sooner.
The Bank has committed to align its lending and investment portfolio with the net zero target by 2050 or sooner by becoming a first signatory of the Net Zero Banking Alliance from Türkiye.
In 2022, the Bank took these commitments one step further, and announced its decarbonization goals by 2030 in other carbon intensive sectors such as power, automotive, steel and cement. These interim targets make up an important phase in reaching emissions targets aligned with net zero by 2050. In this context, Garanti BBVA is aiming to accompany its customers in their transitioning to a more sustainable future.
The Bank’s decarbonization targets set for 2030 have been prepared using the internationally recognized PACTA (Paris Agreement Capital Transition Assessment) methodology. In keeping with the ever-improving data quality, Garanti BBVA plans to review and update these targets.
With which principles did Garanti BBVA set its targets?
- (Long-Term Vision) Entail a long-time vision to plot the path toward 2050 net-zero targets
- (Focused on Decision Making) Be conducive for comparison among companies and competitors in decision-making processes
- (Robust) Be consistent with and based on scientific evidence
- (Extensive Coverage) Cover a relevant spectrum of activities in the field of decarbonization
- (Actionable) Based on available and transparent data
- (Sector-Specific) Homogeneous metrics to make it easier to understand the challenges faced by each company
What is aimed with the targets set within the scope of the PACTA methodology?
- Extend the financial support needed by customers for measuring their progress in decarbonization processes and for their investments in new technology and production methods in this pathway
- Mitigate the transition risk in the portfolio’s by increasing the weight of exposure with clients aligned with the decarbonization scenarios
- Fulfill the transparency commitment in environmental and social performance disclosures that have lately become highly important for the financial sector
Emission Reduction Targets for Carbon-intensive Sectors
|
Power
|
1+2 |
kgCO2e/MWh |
International Energy Agency Net Zero 2050 |
388 |
-72% |
|
Automotive
|
3 |
gCO2e/Km |
International Energy Agency Net Zero 2050 |
182 |
-40% |
|
Steel
|
1+2 |
kgCO2e/TSteel |
International Energy Agency Net Zero 2050 |
1.096 |
-10% |
|
Cement
|
1+2 |
kgCO2e/TCement |
International Energy Agency Net Zero 2050 |
726 |
-20% |
|
Coal
|
- |
TL mn |
Phase-out of the sector by 2040 |
Note: It is important to emphasize that the baseline of these metrics may change, since the sources of information used and the methodology are constantly changing