Sectoral Decarbonization Targets

Given the increased prevalence of the visible impacts of the climate crisis on social life, all financial sector stakeholders, especially customers and investors, started placing environmental, social and governance (ESG) risks in the focal point of their risk management and governance mechanisms. As developments take place in the regulatory landscape and good practices in the world and in Türkiye, Garanti BBVA monitors these developments, and acts towards being a role model for the sector.

The Bank’s decarbonization targets set for carbon-intensive industries such as energy, automotive, iron & steel, and cement by 2030 have been prepared using the internationally recognized PACTA (Paris Agreement Capital Transition Assessment) methodology and were publicly disclosed in 2023. In keeping with the ever-improving data quality, Garanti BBVA takes the necessary steps to periodically review update these targets.

Sektör Emission Scope Metric Scenario Garanti BBVA Baseline (2022) Garanti BBVA Progress (2023) Difference Reduction Target by 2030
Energy 1+2 kgCO2e/Mwh IEA Net Zero 2050 388 339 -%13 -%72
Automotive 3 gCO2e/Km IEA Net Zero 2050 182 179 -%1 -%40
Iron & Steel 1+2 kgCO2e/Tiron&steel IEA Net Zero 2050 1.096 1.320 %20 -%10
Cement 1+2 kgCO2e/Tcement IEA Net Zero 2050 726 726 %0 -%20
Coal - TLmn IEA Net Zero 2050 Phase-out of the sector by 2040

With its sectoral decarbonization targets, Garanti BBVA aims to:

  • Measure customers’ progress in decarbonization processes and extend the financial support they need to invest in new technology and production methods
  • Mitigate the transition risks in its credit portfolio by increasing the concentration of clients achieving their decarbonization targets
  • Fulfill the transparency commitment in environmental and social performance disclosures that have lately became a point of high interest for the financial sector