Case study: How Yapı Kredi promotes a culture of responsible banking among its employees

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.

Understanding the priorities and expectations of Yapı Kredi’s stakeholders helps the bank better manage risks and seize opportunities. Yapı Kredi values effective, two-way communication with its stakeholders, which include shareholders and investors, employees, customers, regulatory and supervisory authorities, financial institutions and creditors, international companies, chambers of commerce and unions, suppliers, NGOs, universities and research institutions, and the media.

Customers are at the core of Yapı Kredi’s business model and represent one of the most crucial stakeholder groups. The bank actively considers customer feedback to continually enhance the customer experience and improve the value it provides. Human capital is the most vital asset supporting Yapı Kredi’s sustainability. To meet employee expectations and prepare for the future of business, the bank regularly updates its work models, employee training and development programs, and fringe benefits. Regarding shareholder relations, the Investor Relations department organizes analyst days, teleconferences, conferences, and roadshows to engage with current and potential investors, while also keeping shareholders informed about ongoing developments.

Yapı Kredi believes that the achievement of Sustainable Development Goals (SDGs) can only be realized through collaboration among multiple stakeholders. Recognizing this, the bank regularly conducts stakeholder analyses as part of its strategic planning process to understand the expectations of both its internal and external stakeholders. The insights gained from these analyses are integrated into its materiality assessment. The stakeholder analysis involves the participation of over a hundred stakeholders, including shareholders and investors, customers, supervisory and regulatory authorities, financial institutions and creditors, chambers of commerce and unions, suppliers, NGOs, universities, and research institutions. Additionally, the bank gathers feedback from its external stakeholders and employees through online surveys.

Yapı Kredi actively participates in sectoral initiatives and collaborates with non-governmental organizations, emphasizing the importance of multi-stakeholder dialogue and cooperation. The bank aims to join and contribute to international sustainability standards and initiatives. It collaborates with numerous organizations, including UNEP FI, UN Principles for Responsible Banking (UN PRB), Turkish Industry and Business Association (TÜSİAD), Global Compact Network Turkey, Women’s Empowerment Principles (WEPs), Women Entrepreneurs Association of Turkey (KAGİDER), WWF Turkey, Finance for Biodiversity Foundation, the Integrated Reporting Turkey Network (ERTA), and the Business Council for Sustainable Development Turkey (bscdTurkey). Additionally, Yapı Kredi is an active member of the Banks Association of Turkey (BAT), participating in all its activities. The bank is also a member of BAT’s “Sustainability Working Group” and contributes to its studies, particularly those focusing on the Green Asset Ratio (GAR) and climate-related risks.

How does Yapı Kredi promote a culture of responsible banking among its employees?

In its 2024 Integrated Annual Report Yapı Kredi reports that it took the following actions to promote a culture of responsible banking among its employees:

Yapı Kredi provides sustainability training and internal communication newsletters for employees at all levels to foster a culture of sustainability within the bank. Employees can access online ESG training modules through Yapı Kredi’s training portal, along with specialized certificate programs for staff working in ESG-related areas.

The bank also organizes workshops and training sessions to enhance knowledge on specific topics, such as incorporating climate change risks and opportunities into lending processes. Additionally, non-financial KPIs related to Yapı Kredi’s sustainability strategy and targets are incorporated into the remuneration packages of all relevant staff, including top management.

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:

First class PRB assurance services: The result of solid, hands-on ESG/ Sustainability experience

• • • FBRH is a GRI Certified Training Partner (Global), ISEP Training Centre and a member of CPD.
    • FBRH builds trust. Over 200 reviews from top professionals from around the world demonstrate our ability to build strong, trusting business relationships.
    • FBRH possesses a unique skill set that combines ESG/sustainability certified training, experience in advisory services and report preparation, and ESG/sustainability report assurance.

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/2024/ykb_2024_integrated_annual_report.pdf?v4

Note to Yapı Kredi: With each case study we send out an email requesting a comment on this case study. If you have not received such an email please contact us.