Case study: How Yapı Kredi works with its clients and customers to encourage sustainable practices

Stakeholder identification and consultation

Please describe which stakeholders (or groups/ types of stakeholders) you have identified, consulted, engaged, collaborated or partnered with for the purpose of implementing the Principles and improving your bank’s impacts. This should include a high-level overview of how your bank has identified relevant stakeholders, what issues were addressed/results achieved and how they fed into the action planning process.

By analysing stakeholder priorities and expectations, Yapı Kredi enhances its risk and opportunity management. The Bank values effective, two-way communication with stakeholders, including shareholders, investors, employees, customers, supervisory and regulatory bodies, financial institutions, creditors, international enterprises, chambers of commerce, unions, suppliers, NGOs, universities, research institutions, and the media.

Customers are central to Yapı Kredi’s business model, representing a key stakeholder group. The Bank uses customer feedback to improve their experience and value proposition. Human capital is fundamental to Yapı Kredi’s sustainability. To meet employee expectations and prepare for the future, the Bank continually updates its working model, training programs, development opportunities, and fringe benefits. For shareholders, the Investor Relations department hosts analyst meetings, teleconferences, conferences, and roadshows to meet with current and potential investors while informing shareholders about current developments.

Yapı Kredi believes Sustainable Development Goals require multistakeholder collaborations. Recognizing this, the Bank conducts regular stakeholder analyses to understand internal and external stakeholder expectations, incorporating the results into its materiality analysis. This analysis involves over a hundred stakeholders, including shareholders, investors, customers, supervisory and regulatory bodies, financial institutions, creditors, chambers of commerce, unions, suppliers, NGOs, universities, and research institutions, gathering their opinions via an online survey.

The Bank is active in sectoral initiatives and NGOs, emphasizing multi-stakeholder communication and cooperation. Yapı Kredi aims to align with international sustainability standards and initiatives, collaborating with organizations such as UNEP FI, UN PRB, Turkish Industry and Business Association (TÜSİAD), Global Compact Network Türkiye, Women’s Empowerment Principles (WEPs), Women Entrepreneurs Association of Türkiye (KAGİDER), World Wide Fund for Nature (WWF-Türkiye), Finance for Biodiversity Foundation, and Integrated Reporting Türkiye Network (ERTA). Yapı Kredi is also an active member of the Banks Association of Türkiye (BAT), contributing to the “Role of the Financial Sector in Sustainable Growth Working Group” and sub-working groups on Green Asset Ratio (GAR) and climate risks.

How did Yapı Kredi work with its clients and customers to encourage sustainable practices and enable sustainable economic activities?

In its 2023 Integrated Annual Report Yapı Kredi reports that it works with its clients and customers to encourage sustainable practices and enable sustainable economic activities as follows:

Yapı Kredi places its customers at the core of its activities. When providing financial products and services designed to meet customers’ needs and improve their welfare, the Bank adheres to principles of accurate information dissemination, transparent and fair service, and enhancing financial literacy. The Responsible Lending Statement guides the Bank’s responsible customer relationships and serves as a reference for employees.

Considering the sector’s significant influence, Yapı Kredi embraces a responsible growth approach to positively impact all stakeholders and add value across its operations. The Bank’s sustainability approach focuses on creating long-term value for each area and stakeholder by addressing social and environmental issues while fostering economic development and growth. Sustainability is integral to Yapı Kredi’s business culture and philosophy.

Recognizing the finance sector’s vital role in addressing global environmental and social issues, Yapı Kredi works to expand sustainable finance products for individual and corporate customers. The Bank aims to set strategic targets to increase the share of these products in its loan portfolio and to build customer capacity for sustainable finance, supporting the financing of transformative initiatives.

Launched in 2023, Yapı Kredi’s “Step” program encourages customers to make sustainable choices and supports them on their sustainability journey. Additionally, the Bank leverages all communication channels to raise common awareness about sustainability. Through the “As Simple as the World” project, associated with Turkey’s leading credit card brand “World,” the Bank promotes responsible behaviour, urging consumers to simplify their lives, save, and shop smart rather than spend excessively. This initiative encourages individuals to prevent waste and save in all aspects of life. Yapı Kredi’s podcast channel, “Let’s Talk Sustainability,” shares sustainability tips from life with a dynamic and easy-to-understand style of narration. The “Sustainability Talks” series, broadcast live on the Bank’s social media, features two monthly programs discussing sustainability’s impact on the business world, sharing success stories and best practices with the audience.

UN Principles for Responsible Banking: Accelerating a positive global transition for people and the planet

With over 300 signatory banks representing almost half of the global banking industry, the Principles for Responsible Banking are the world’s foremost sustainable banking framework. Through these Principles, the banking community takes action to align core strategies, decision-making, lending and investment with the UN Sustainable Development Goals and international agreements such as the Paris Climate Agreement.

FBRH Principles for Responsible Banking (PRB) Assurance:

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The combination of all the above empowers FBRH to provide first class Principles for Responsible Banking (PRB) assurance services.

References:

This case study is based on published information by Yapı Kredi, located at the link below. For the sake of readability, we did not use brackets or ellipses. However, we made sure that the extra or missing words did not change the report’s meaning. If you would like to quote these written sources from the original please revert to the following link:

https://www.yapikrediinvestorrelations.com/en/images/pdf/annual-reports/2023/YK23-integrated-annual-report.pdf

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