Garanti BBVA has signed the Equator Principles, which serve as a global framework for identifying, assessing and managing environmental and social impacts in investment and project financing processes. Garanti BBVA, one of the pioneers of the industry with its sustainability and responsible banking strategies, became the first bank in Türkiye to join this global initiative.
Garanti BBVA has been integrating environmental and social impact assessment into its credit analysis processes since 2011, adopting a pioneering approach that considers the impact of projects on nature and society. The policy tools and practices developed by Garanti BBVA are constantly updated in line with international standards and sectoral-specific criteria.
As part of its efforts to align with the BBVA Group, the Bank took its approach a step further by signing the Equator Principles (EP), which it has long regarded as a best practice in investment and project financing. Garanti BBVA became the first bank in Türkiye to join the initiative, which is recognized globally as a benchmark in determining, assessing and managing environmental and social risks when financing projects. This move reinforces Garanti BBVA’s commitment to financing sustainability-driven investments and projects, further solidifying its leadership position in the field.
As of today, a total of 130 signatory financial institutions worldwide apply the Equator Principles to projects they finance through investment lending, provided they fall under the EP Scope.
Mahmut Akten: "With this step, we aim to set a benchmark for the sector in our country in terms of sustainability and responsible banking"
Garanti BBVA General Manager Mahmut Akten made the following statements:
“We recognize the financial sector’s responsibility in building a more sustainable future. By signing the Equator Principles —of which the BBVA Group has been a signatory since 2004— we are proud to bring our Group’s global vision to Türkiye and to become the first financial institution in our country to make this commitment. This signing marks a significant milestone and a strategic move in Garanti BBVA’s long-term sustainability journey. Our adoption of the Equator Principles demonstrates that sustainability is not only embedded in our financial products but also integrated into all of our decision-making processes. We adopt a holistic approach aimed at creating lasting and positive impact on all stakeholders by conducting evaluations in line with international standards in areas such as biodiversity conservation, combating the climate crisis, social inclusion and the protection of cultural heritage. With this step, which reinforces environmental and social risk management in the financing of investments and projects, we aim to set a leading example for the financial sector in Türkiye.”
Global Impact Management Approach to Projects
The Equator Principles apply to all sectors, including infrastructure and energy with higher potential in terms of environmental and social risks. It covers five financial products, including project finance, Project-Related Refinance, and Project-Related Acquisition Finance. The EPs aim to assess the environmental and social impacts of projects in EP Scope with a holistic approach before they are financed and to manage risks effectively during project implementation.
By signing the Equator Principles, Garanti BBVA ensures the integration of the 10 fundamental principles into its environmental and social risk management systems. These principles offer a comprehensive framework covering everything from risk classification and impact assessment, to compliance with international standards and the development of management plans; from stakeholder engagement and grievance mechanisms, to independent reviews, monitoring, and transparent reporting. This ensures that projects are carried out more sustainably, considering both their environmental and social impacts.
To explore Garanti BBVA’s environmental and social risk management practices, please visit our website. For more information on the Equator Principles, please click here.