Sustainability Governance
The responsibility for monitoring, managing, overseeing sustainability-related risks and opportunities has been delegated to the Sustainability and Responsible Banking Committee in accordance with the Sustainability Policy approved by the Board of Directors. The Sustainability and Responsible Banking Committee evaluates related risks and opportunities, monitors the short, medium and long term targets of the Bank and its subsidiaries, where deemed necessary, in line with the sustainability strategy. In 2024, the Sustainability and Responsible Banking Committee convened twice, during which the relevant teams provided updates on sustainabilityrelated risks and opportunities.
Furthermore, in 2024, Garanti BBVA International, headquartered in the Netherlands, and Garanti BBVA Romania also established their own sustainability committees to oversee their sustainability-related activities. Efforts are ongoing to establish similar committees within subsidiaries operating outside the banking sector.
Top Management is responsible for the adoption and implementation of the Sustainability Policy, which sets out the principles and main focal points in the field of sustainability, by all teams in the bank. The Bank aims to integrate its sustainability vision into all aspects of its organization by providing the necessary tools, systems, and structures to ensure compliance with the policy.
Aligned with its governance model, the implementation of the Sustainability Policy is monitored periodically, either directly by the Board of Directors or indirectly through the Sustainability and Responsible Banking Committee. The level of compliance and progress is tracked as part of the Bank’s internal control model, which is designed to ensure the effective management of sustainability risks.
In 2024, Mahmut Akten assumed the role of CEO of Garanti BBVA, having served as a member of the Sustainability and Responsible Banking Committee for eight years during his tenure as Executive Vice President responsible for Retail and Corporate Banking. Additionally, during his two-year tenure as EVP responsible for Corporate Banking, he also oversaw the sustainable finance function. As a member of the Board of Directors, Akten continues to oversee the Bank’s sustainability-related activities through the Sustainability and Responsible Banking Committee and reports to the Board of Directors when necessary.
Garanti BBVA remains committed to operating under the sustainability governance structure that it restructured in 2022 to align with a more responsible and efficient business model.
Sustainability is actively monitored by multiple teams across the Bank:
- The Sustainability Unit under the Commercial Banking division is responsible for the creation, implementation, and monitoring of Garanti BBVA and its subsidiaries' sustainability strategy, in alignment with its primary sustainability partner, BBVA Group, and in compliance with national and international laws and regulations.
- The Sustainable Finance team under the Corporate Banking division oversees mobilization processes within the Bank and its subsidiaries in line with sustainability targets, ensuring the effective implementation and expansion of sustainable finance. With this approach, Garanti BBVA aims to contribute both to the transformation of the financial system and the global sustainability agenda, reinforcing its vision of providing sustainable financing.
- The Sustainable and Green Office team under the Talent and Culture division manages the direct environmental impact of all buildings and branches operated by Garanti BBVA and its subsidiaries. It develops strategies aligned with the Global Efficiency Plan, covering areas such as energy and water efficiency, waste management, and greenhouse gas emissions, while tracking the Group’s environmental footprint.
- The Sustainability Reporting and Monitoring team under the Risk division is responsible for measuring and monitoring climate risks within Garanti BBVA’s portfolio, tracking portfolio-level progress toward decarbonization targets, and reporting on financed emissions.
- The Sustainability Model Development team under the Risk division focuses on the development of sustainability-driven analytical models and their integration into the Bank’s risk management processes. Its primary responsibilities include ensuring that physical and transition risks are accurately reflected in key credit risk parameters such as probability of default (PD) and loss given default (LGD).
- The Project Loans and Sustainability specialist in the Risk division ensures that transition risks are assessed by integrating ESG factors into the limit allocation and update processes evaluated by the Bank's credit committee. Sustainability Governance
- The Environmental and Social Impact Assessment team, under the Corporate and Investment Banking division, conducts effective environmental and social risk assessments in credit processes and customer activities to ensure proactive risk management and to minimize potential negative impacts to the lowest possible level. Analyses are first carried out in line with the Environmental and Social Loan Standard (ESLS) for compliance with essential policies and legislation. Additionally, the Environmental and Social Impact Assessment Process (ESIAP) is used, if necessary, as a check of compliance with advanced environmental and social criteria according to the internal procedure rule set.
- The Garanti BBVA Inspection Board is responsible for independently and impartially evaluating the effectiveness of risk management, internal control, and corporate governance processes within the Bank and its consolidated subsidiaries, ensuring reasonable assurance for the Bank’s strategic goals. In this context, the Inspection Board assesses environmental, social, and governance (ESG) risks that the Bank and its subsidiaries may be exposed to and formulates annual and multi-year audit plans based on priorities set by the Board of Directors and the Inspection Board. Within the scope of audit plans, inspections are conducted in line with international sustainability standards, local regulations, and the Bank’s sustainability strategy, targets, and business plans. The audits carried out by the Inspection Board are designed, executed, and concluded to provide insights into the effectiveness of risk management and control processes.
- The Risk Management Department measures and monitors the risks to which the Bank is exposed both on a consolidated and non-consolidated basis, in compliance with legal regulations, while aligning with international standards and best practices from advanced economies. Within this framework, it assesses climate-related financial risks and examines the interactions between climate risk and other risks to which the Bank is exposed. Additionally, evaluations of the impact of climate-related financial risks on the Bank are integrated into internal capital requirement assessments.
- In addition to these teams, sustainability representatives across all business units take on responsibilities related to sustainability functions within their respective areas when required.