The world is undergoing a signification social, environmental and economic transformation. Many practices that we know and are familiar with are no longer applicable and capable of fulfilling our needs under the current conditions. In the past decade, we have witnessed a radical change in the expectations of communities from businesses. In the next decade, we will be seeing much more demanding societies that are more aware of their power given these revamped expectations. In the light of these, Garanti BBVA puts responsible and sustainable development in its focus and develops innovative practices to respond to its stakeholders’ expectations.In a bid to support responsible and sustainable development,one of its strategic goals, the Bank mobilizes its human and intellectual capitals along with financial capital. The Bank understands the conditions surrounding its customers and other stakeholders, and develops solutions that cater to their needs. Taking into consideration the 2030 Agenda1 that ranks high among material issues, the Bank develops innovative financial instruments and solutions such as the green loan and gender loan, and promotes them in the sector through cooperation platforms.

The Bank collaborates with its peers and the business world at a global level to identify new opportunities, to determine emerging best practices and products, and to remain a leader in sustainable finance and development in Turkey. To this end, Garanti BBVA actively supports or chairs 27 initiatives in total 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).

In 2019, Garanti BBVA, along with 6 other banks from Turkey, committed to adhere to the Principles for Responsible Banking as a global guide in projects they finance. The Bank will be evaluating the products in its loan book against non-financial criteria that make an environmental and social risk or impact, as well as financial parameters in the light of these Principles. Guided by the Principles, the Bank will target to set new targets and further improve its performance every time, rather than keeping the decisions fixed.

As a constituent of 9 sustainability indices in total including the Dow Jones Sustainability Emerging Markets Index, Garanti BBVA analyzes the sector’s leading practices in environmental and social areas and originates new areas for continuous improvement. Garanti shows the way for sustainable pathways through being involved in the development of collective policies and position papers of the private sector, which numbered 13 in 2019.

Garanti BBVA diversifies financial instruments provided for low-carbon and inclusive growth, and cooperates with international financial institutions for lowcost 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, and the gender loan, which is a loan structure implemented for the first time in Turkey and in the world.

The green project finance loan and the green corporate loan Garanti BBVA launched in 2018 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.

The Gender Loan, which made its debut in Turkey and in the world, was introduced in 2019 under an agreement signed with Polat

Energy. Under the Gender Loan, Garanti BBVA will grant discount both on cash loan interest and non-cash loan commission for improvements Polat Energy will secure in gender equality.

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 in recent years, thus increasing the total lending to this area to date to USD 5.2 billion, Garanti BBVA’s support to green and environmentallysensitive energy continues with the use of 100% renewable energy for electricity in all of its locations.

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 investment programs focusing on material issues such as quality education, culture and arts, entrepreneurship, and environment.

Launched in 2017 with the collaboration of the Teachers Academy Foundation (ÖRAV), the 5 Pebbles: Social and Financial Leadership Program aims to instill an awareness of financial literacy in future generations. In addition, Code the Future Project was launched in 2016 by Garanti BBVA and Bahçeşehir University. It intends to improve 8-10 aged children’s skills, and competencies in problem solving, analytical thinking and teamwork through entertaining content including coding and robotics workshops so that they get better equipped for the requirements of the digital age. The project’s scope expanded in 2018, with the inclusion of school teachers. With the aim of adding to society’s active participation in culture and arts, 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 Sustainable Development Goal 4: Quality Education, Goal 5: Gender Equality, 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 Action, Goal 14: Life Below Water, Goal 15: Life on Land, Goal 17: Partnerships to Achieve the Goal.