Our Decarbonization Targets
Garanti BBVA aims to align its loan portfolio with net zero climate scenarios by 2050, in line with the Guidelines for Climate Target Setting for Banks developed by the United Nations Environment Programme Finance Initiative (UNEP FI). The Bank became the first bank in Türkiye to commit to phasing out coal in 2021, pledging to reduce its coal-related exposure to a minimum by 2030 and to fully exit by 2040 at the latest. In 2023, the Bank further advanced these commitments by announcing 2030 interim decarbonization targets for carbon-intensive sectors, including energy, automotive, iron and steel, and cement.
The Bank’s decarbonization targets for these sectors have been developed in accordance with the internationally recognized PACTA (Paris Agreement Capital Transition Assessment) methodology. Garanti BBVA regularly reviews and updates these targets in line with improvements in data quality. Emission intensity in carbon-intensive sectors is calculated and monitored using the PACTA methodology.
The primary objectives of Garanti BBVA’s sectoral decarbonization targets are to measure clients’ progress in their decarbonization pathways, to provide financial support for investments in new technologies and production methods, to reduce transition risks within the loan portfolio by increasing exposure to clients aligned with decarbonization targets, and to fulfill its commitment to transparency regarding environmental and social performance disclosures.
As of 2025, the Bank continues to regularly monitor progress against its portfolio decarbonization targets for clients operating in the energy, automotive, iron and steel, cement, and coal sectors.
In 2025, emission intensity in the automotive sector decreased by 2% compared to 2024, while no change was observed in the cement sector due to limitations in the underlying data set. In the iron and steel sector, emission intensity decreased by 7%, driven by an increase in short-term exposures to companies utilizing Electric Arc Furnace technology. In the energy sector, emission intensity declined by 2%, supported by the financing of renewable energy investments. The reported 2025 values are 364 kg CO₂e/MWh for energy, 168 g CO₂e/km for automotive, 1,320 kg CO₂e/ton of steel for iron and steel, and 726 kg CO₂e/ton of cement.
The TRi (Transition Risk Indicator) tool, developed by BBVA, enables the integration of emission intensity reduction targets into daily risk management processes. Garanti BBVA utilizes the Transition Risk Indicator (TRI) to systematically assess climate-related transition risks within its credit processes and to evaluate its clients’ capacity to adapt to a low-carbon economy. The tool is defined as a structured mechanism that assesses clients’ level of awareness regarding climate change, their transition readiness, and the sustainability of their current business models.