Case study: How İşbank identifies and works on strategic business opportunities to increase positive and reduce negative impacts

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.

İşbank actively collaborates with a diverse range of stakeholders, including clients, employees, investors, and the broader society. As part of its sustainability initiatives, the bank conducts a materiality analysis by engaging both internal and external stakeholders to identify its key sustainability priorities. This process aligns with the AA1000 Stakeholder Engagement Standard.

Stakeholder groups involved in this process include employees, customers, investors, non-governmental organizations, industry associations, international organizations, financial institutions, subsidiaries, business partners, public agencies, suppliers, and academic institutions. İşbank collects feedback through online surveys to understand stakeholder perspectives on critical issues and to gauge their expectations regarding the bank’s sustainability efforts.

The materiality analysis is reviewed annually and updated as needed. In identifying material issues, İşbank adheres to the European Sustainability Reporting Standards (ESRS) developed by the European Financial Reporting Advisory Group (EFRAG), IFRS S1 (General Requirements for Disclosure of Sustainability-Related Financial Information) issued by the International Sustainability Standards Board (ISSB), and the Global Reporting Initiative (GRI) Standards.

The bank’s materiality assessment follows a “double materiality” framework, considering both the potential impacts of issues on business strategies and their financial and non-financial consequences. Each material issue is assessed for its financial and reputational risk to the bank, as well as its effect on relevant stakeholders.

For a detailed list of İşbank’s material issues, please refer to the “Prioritization Process at İşbank” section in İşbank’s Integrated Annual Report 2024.

Additionally, İşbank actively participates in various sustainability initiatives and maintains memberships in several organizations. The bank is a member of the Global Compact Turkey Sustainable Banking and Finance Working Group, which promotes sustainability within the Turkish financial sector and encourages the private sector to mobilize financial resources toward achieving the Sustainable Development Goals. A complete list of initiatives supported by the bank can be found in the “Supported Initiatives” section of İşbank’s Integrated Annual Report 2024.

How did İşbank identify and work on strategic business opportunities to increase positive and reduce negative impacts?

In its 2024 PRB Responsible Banking Progress Statement İşbank reports that it identified and worked on strategic business opportunities to increase positive and reduce negative impacts as follows:

İşbank supports the green transformation of its customers through its diverse range of products. The bank promotes green and sustainable development by offering financing solutions that facilitate the transition to a zero-carbon economy, including renewable energy projects, energy efficiency initiatives, and resource efficiency.

Some examples of these products, services, and sustainable offerings include:

• The European Fund for Southeast Europe S.A. (EFSE), in collaboration with Finance in Motion GmbH (FiM), a German financial institution, is funding a joint project aimed at the agricultural sector in Türkiye. This project involves assessing the carbon footprint of wheat, barley, sunflower, and corn producers. Additionally, İşbank has supported financing for various training sessions, farmer meetings, and İmece Workshops designed to promote sustainable agriculture among bank employees and producers within the agricultural ecosystem. As part of the second phase of the project, carbon footprint measurements for 25 agricultural products have commenced.
• Water Management Platform / Blueit
  The Blueit Water Efficiency Package has been provided to SME customers to ensure efficient water use and effective management in commercial and industrial facilities. This service enables real-time water consumption monitoring, remote control, and technical support. It was also designed to generate commission income as part of İşbank’s Marine Conservation Loan.
• Twin Transition Journey for 100 SMEs
  One of İşbank’s key initiatives with SMEs is the ‘Twin Transition Journey for 100 SMEs,’ a project implemented in collaboration with the MEXT Technology Centre. Its goal is to enhance the productivity of SMEs, boost their competitiveness on the global stage, and support their digital and green transformation processes. The project has already commenced for 100 companies, progressing at various stages of maturity according to the planned schedule. To date, 98 companies have completed the SIRI analysis, and 77 have completed the COSIRI analysis.
• IoT Technology Solution / Vodafone Red Energy Project
  The IoT Technology-Based Energy Efficiency Package was provided to SMEs within the bank’s portfolio for a duration of 12 months. This solution allows companies to monitor and manage their energy consumption data in their factories or production facilities via a single platform. The package has been allocated to several companies, generating commission income. In partnership with Vodafone Red Energy IoT, devices were installed in 112 companies, enabling real-time energy consumption tracking and identification of savings opportunities.
• Carbon Emission Measurement Project / Captanomy
  The Carbon Emission Measurement Project, developed in partnership with Captanomy, allows SME customers to measure their carbon emissions and compare sectoral emission data. The platform enables companies to calculate their emissions by inputting their own consumption data. It provides an easy-to-use tool for instant carbon footprint calculations in accordance with ISO 14064 Standards, without requiring technical expertise, and allows for reporting when needed. It is also possible to analyze the position of the company in terms of carbon emissions compared to the sector average. Companies utilizing green loans are eligible to access the platform free of charge. As part of this initiative, 114 companies have been granted platform memberships through Captanomy.
• İşbank’s 100th Year Bill
  İşbank’s “100th Year Bill”, the first green bill issued in Turkey to mark the bank’s centennial, was launched with a ceremonial gong event at Borsa İstanbul. The bank issued TL 4.5 billion worth of green bills, marking a significant milestone in its green transformation and environmental responsibility efforts, and reinforcing its pioneering role in Türkiye’s capital markets. The 126-day maturity transaction, set to mature on August 26, 2024—coinciding with the bank’s 100th anniversary—has also been recognized as the largest public offering of green debt instruments in Turkish financial history.
• Sustainability-Linked Syndication Loans
  In June 2024, İş Bankası secured a sustainability-linked syndication loan totalling USD 442 million and EUR 562.7 million, with a maturity of 367 days. The key performance indicators (KPIs) for this loan focus on the volume of cash credits provided to women-owned or managed SMEs and small-scale farmers. The bank periodically reviews the sustainability criteria associated with these syndication loans, considering creditor feedback and its own strategic priorities. If necessary, new structures and features may be introduced.

Additionally, in November 2024, the bank secured a syndication loan with a maturity of 371 days, amounting to USD 584.5 million and EUR 494.9 million, structured as a sustainable loan rather than a sustainability-linked loan. While this structure does not include KPIs, the funds will be used to support green and social initiatives in line with the terms outlined in the agreement and the bank’s Sustainable Finance Framework.

• Solar Power Plant (SPP) Pre-Feasibility Project / Solarvis
  The Pre-Feasibility Preparation Panel, designed to meet the specific data needs of companies planning to invest in Solar Power Plants, enables businesses to estimate the average costs of their investments and determine the payback period. This tool is provided free of charge to customers via the bank’s website. Between April 2023 and March 2025, the panel received 1,417 visits. By inputting basic details such as roof slope and location, companies can access information on investment costs and amortization periods for potential renewable energy investments.
• EPC Cooperation / Solar Roof
  In collaboration with Solar Roof, a leading Engineering, Procurement, and Construction (EPC) company known for delivering turnkey solar energy projects, İşbank offers its customers discounts on the company’s standard sales prices. This benefit applies to clients who receive Solar Energy System (GES) installations and finance these projects through İşbank’s Solar Loan.
• Initiatives in Agricultural Banking
  • The İmeceMobil application, available for free download, offers farmers support in financial literacy, digital skills, and agricultural practices. It also provides information on good farming techniques and access to technological solutions that promote sustainable agriculture. By the end of 2024, the application had reached 300,000 users.
  • The inaugural session of the İmece Workshops series focused on ‘Water,’ addressing key topics such as efficient water use, wastewater recycling, and managing water in agriculture with new technologies. İşbank considers the ‘İmece Workshops’ series, which brings together important stakeholders in the agricultural ecosystem, to be highly valuable for the benefits the bank aims to deliver to the agricultural sector.
  • Through the ‘Digital Agriculture Solution’ developed in partnership with Vodafone, İşbank strives to reduce the use of inputs like fertilizers, pesticides, and water. The project’s recommendations helped farmers achieve an economic benefit of TL 692.5 million in 2024.
  • Favourable financing packages are available for women farmers and women’s cooperatives. In 2024, TL 1.7 billion was disbursed to women farmers.
  • Over 33,000 farmers have been engaged through initiatives such as Farmer Meetings and Agricultural Banking Awareness Seminars at universities to enhance awareness. In 2024 alone, 4,700 farmers participated in these events.

Additionally, İşbank offers financing support through various specialized loans: the Roof Solar Power Plant Loan for self-consumption investments in roof, facade, and land-based unlicensed solar power plants; the Electric Charging Station Installation Loan, aimed at fostering the growth of the electric vehicle industry and making charging units more accessible to vehicle owners; the Marine Conservation Loan, designed to provide financial assistance to commercial customers who generate wastewater in their production processes and seek to efficiently utilize water resources while preventing or reducing sea pollution incidents; and the Unlicensed Electricity Production Loan, which supports renewable energy-based electricity generation—such as solar and wind—with an installed capacity of up to 5 MW. Businesses planning to invest in wastewater treatment and recycling facilities or upgrade existing systems can also meet their financing needs under favourable terms with this product.

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References:

This case study is based on published information by İşbank, 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.isbank.com.tr/bankamizi-taniyin/Documents/yatirimci-iliskileri/raporlarimiz/prb/PRB2024.pdf

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