RESPONSIBLE AND SUSTAINABLE
DEVELOPMENT

It is one of the strategic goals of Garanti BBVA to mobilize human and intellectual capital along with financial capital to support responsible and sustainable development.

The Bank’s empathy skills let Garanti BBVA understand the conditions surrounding its customers and other stakeholders, allowing the Bank to develop solutions that cater to their needs. Taking into consideration the 2030 Agenda1 that ranks high among priority topics, the Bank develops innovative financial instruments and solutions such as the green loan and promotes them in the sector through cooperation platforms.

To this end, Garanti BBVA provides active support or chairs a total of 24 initiatives including a number of intermediary platforms including the United Nations Environment Program Finance Initiative (UNEP FI), Principles for Responsible Banking, Global Compact Turkey, and the Turkish Business Council for Sustainable Development (BCSD Turkey).

As a constituent of 7 sustainability indices in total including the Dow Jones SustainabilityTM Emerging Markets Index, Garanti BBVA analyzes the sector’s leading practices in environmental and social areas and originates new areas for continuous improvement. Garanti BBVA shows the way for sustainable pathways through providing content support to collective policies and position papers of the private sector, which numbered 14 in 2018.

Garanti BBVA diversifies financial instruments provided for lowcarbon and inclusive growth, and cooperates with international financial institutions for low-cost funding. Drawing on its intellectual capital, the Bank introduces innovative financial resources that incorporate sustainability criteria, as exemplified in the first social bond issue ever carried out by a private bank in an emerging country.

The green project finance loan and the green corporate loan Garanti BBVA launched in the reporting period drive borrowers to improve their sustainability performances throughout the term of the loan. Both representing the first examples of their kind in Turkey, green loan agreements harbor advantages in terms of loan interest or commission rates for borrowers, which are made available depending on the achievement of improved performance in environmental, social and corporate governance areas that satisfy the predefined criteria during the term of the loan.

As climate change continues to be one of the most significant global crises in the 21st century, responsible finance approach is molded to address climate change issues in addition to societal challenges such as fostering employment through supporting SMEs in growing their business.

Having allocated 100% of its project finance support for greenfield energy investments to renewables as in recent years, thus increasing the total lending to this area to date to USD 5.3 billion, Garanti BBVA’s support to green energy continues with solar energy investments commissioned in its own branches.

Garanti BBVA believes that a strong economy and business model are attainable only through strong communities, a sustainable environment and empowered individuals. To this end, the Bank creates shared value through its strategic community programs focusing on material issues such as skills gap, education, cultural development and environment.

Launched in 2017 by the Teachers Academy Foundation (in Turkish: ÖRAV), the 5 Pebbles: Social and Financial Leadership Project aims to instill an awareness of financial literacy in future generations. Within the scope of a collaborative project of Garanti BBVA and Bahçeşehir University launched in 2016, it is intended to improve 8-10 aged children’s skills and competencies required by our age such as problem solving, analytical thinking and teamwork through entertaining content including coding and robotics in technology workshops so that they are better equipped for the requirements of the digital age. In addition, Garanti BBVA remains as the main sponsor of the Turkish Entrepreneurship Foundation, namely Girvak, working to drive the culture of entrepreneurship and to encourage youth to experience entrepreneurship by learning from their inspirational role models, taking part in various entrepreneurship activities and networking since 2014. Founded with the motive of being instrumental in bringing culture and arts to the society, SALT continues to operate as a not-for-profit autonomous institution out of three locations, namely SALT Beyoğlu, SALT Galata and SALT Ankara.

By focusing on responsible and sustainable development, the Bank actively contributes to the following Sustainable Development Goal 4: Quality Education, Goal 6: Clean Water and Sanitation, Goal 7: Affordable and Clean Energy, Goal 8: Decent Work and Economic Growth, Goal 11: Sustainable Cities and Communities, Goal 12: Responsible Consumption and Production, Goal 13: Climate Change, Goal 14: Life Below Water, Goal 15: Life on Land, Goal 17: Partnerships for the Goals.

 

1 The 2030 Agenda refers to 17 Sustainable Development Goals (‘SDGs’) as defined in 2015 by UN-member countries to end poverty, combat inequalities and injustice, and overcome climate change by 2030.

* Based on the total operational installed capacities of HEPP, SPP and WPP projects in the financing of which Garanti BBVA has participated.
** Restated for 2017 due to the change in scope.
*** Not calculated in 2017.

 

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