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.

Garanti BBVA incorporates its stakeholders’ concerns —stakeholders include customers, employees, shareholders, investors, suppliers, regulators, auditors, and society at large—on social and environmental issues, diversity, fiscal responsibility, human rights, and the prevention of corruption and other illegal activities into its business strategies, operations, and activities. The bank maintains ongoing dialogue with both external and internal stakeholders through different channels, and key issues are prioritized based on the feedback and insights gathered from these dialogues.

The bank has consistently been actively involved in numerous initiatives, working closely with all stakeholders. These initiatives focus on the following priority areas:

• Global Frameworks: Garanti BBVA and the BBVA Group are among the banks involved in establishing, promoting, and supporting the UNEP-FI Responsible Banking Principles. In 2023, Garanti BBVA also joined the main group responsible for shaping the 2030 strategy of the UNEP FI Responsible Banking Principles.
• Climate Commitments: Garanti BBVA is a member of the Net-Zero Banking Alliance supported by UNEP-FI, aligning its operations with the goals of the Paris Climate Agreement.
• Market Standards: The bank supports key standards such as the Equator Principles, ICMA’s Green Bond Principles, Social Bond Principles, LMA’s Green Credit Principles, and the EU Taxonomy, among others, developed by the banking sector.
• Transparency: Garanti BBVA publishes an integrated activity report aligned with the Turkish Sustainability Reporting Standards and includes a GRI Standards index.
• Regulatory Engagement: The bank actively participates in many consultative and advisory processes with regulatory and supervisory bodies, including the Ministry of Environment, Urbanization and Climate Change and the Banks Association of Turkey, to support the development of sustainable finance regulations.

For over a decade, Garanti BBVA has actively engaged in various transnational initiatives. In addition to its commitment to the United Nations Global Compact and its status as a signatory of the UNEP FI, the bank has been involved in numerous sustainability-focused initiatives since 2012. It is a member of several working groups, including the United Nations Net-Zero Banking Association (NZBA), the United Nations Responsible Banking Principles Working Group, the Global Compact Turkey Group, SKD Turkey (Business World and Sustainable Development Association), the Banks Association of Turkey (TBB), the Role of the Financial Sector in Sustainable Growth Working Group, and the Turkish Industrialists’ and Businessmen’s Association (TÜSİAD) Environment and Climate Change Working Group. Throughout these efforts, Garanti BBVA maintains close cooperation with all key stakeholders—including industry players, regulators and supervisors, investors, and civil society organizations.

How does Garanti BBVA promote a culture of responsible banking among its employees?

In its 2024 PRB Impact Report Garanti BBVA reports that it took the following actions to promote a culture of responsible banking among its employees:

The BBVA Group has established a comprehensive global training program to equip its employees with the knowledge needed to tackle strategic sustainability challenges. Through the Campus BBVA training platform, two learning pathways are available to all employees, regardless of their location or role. Worldwide, over 102,000 BBVA employees have completed these courses, and by December 31, 2024, a total of 18,707 Garanti BBVA employees had received sustainability training, including the Principles for Responsible Banking introduced in 2020. The foundational sustainability training covers the 2030 Agenda and the SDGs, the financial industry’s role, and the BBVA Group and Garanti BBVA’s strategic approach, while the advanced level delves into sustainable finance.

To ensure employees can effectively address sustainability within their respective roles, specialized training programs have been developed in collaboration with renowned international institutions. These include training on portfolio alignment and the use of internal tools such as the alignment dashboard based on PACTA methodology and the Transition Risk Indicator, supporting the Group’s decarbonization goals.

Responsible Banking practices are a key focus for Garanti BBVA, with senior management leading the initiative. Sustainability is one of the bank’s six strategic priorities, and EVPs, along with the CEO, serve on the Responsible Banking and Sustainability Committee, where various departments present updates on their sustainability projects. To foster ownership of the strategy, sustainability considerations have been integrated into the premium eligibility criteria for employees at all levels, starting with the Board of Directors.

Recognizing the importance of global collaboration in maintaining leadership in sustainable finance in Turkey, Garanti BBVA actively works to partner with peers and suppliers. The bank continues efforts to provide sustainability training to suppliers, aiming to clearly communicate its sustainability strategies and promote adherence to its standards.

Additionally, the bank leverages its communication channels, such as social media, to raise awareness on environmental and social issues, highlighting a different theme each month. As part of the Sustainable Habits initiative, Garanti BBVA shares best practices and innovative ideas from its employees to foster a culture of sustainability.

 

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 Garanti BBVA, 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.garantibbvainvestorrelations.com/en/images/pdf/GBFR24_ENG_App6.pdf

Note to Garanti BBVA: 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.

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.

Garanti BBVA incorporates the concerns of its stakeholders—customers, employees, shareholders, investors, suppliers, regulators, auditors, and society at large—on social and environmental issues, diversity, fiscal responsibility, human rights, and the prevention of corruption and other illegal activities into its business strategies, operations, and activities. The bank maintains ongoing dialogue with its external and internal stakeholders through various channels, and key issues are prioritized based on the feedback and insights gathered from these engagements.

The bank has consistently been actively involved in numerous initiatives, working closely with all stakeholders. These initiatives focus on the following priority areas:

• Global Frameworks: Garanti BBVA and the BBVA Group are among the banks involved in establishing, promoting, and supporting the UNEP-FI Responsible Banking Principles. In 2023, Garanti BBVA also joined the main group responsible for shaping the 2030 strategy of the UNEP FI Responsible Banking Principles.
• Climate Commitments: Garanti BBVA is a member of the Net-Zero Banking Alliance supported by UNEP-FI, aligning its operations with the goals of the Paris Climate Agreement.
• Market Standards: The bank supports key standards such as the Equator Principles, ICMA’s Green Bond Principles, Social Bond Principles, LMA’s Green Credit Principles, and the EU Taxonomy, among others, developed by the banking sector.
• Transparency: Garanti BBVA publishes an integrated activity report aligned with the Turkish Sustainability Reporting Standards and includes a GRI Standards index.
• Regulatory Engagement: The bank actively participates in consultative and advisory processes with regulatory and supervisory bodies, including the Ministry of Environment, Urbanization and Climate Change and the Banks Association of Turkey, to support the development of sustainable finance regulations.

For over a decade, Garanti BBVA has actively engaged in various transnational initiatives. Besides its commitment to the United Nations Global Compact and its status as a signatory of the UNEP FI, the bank has been involved in numerous sustainability-focused initiatives since 2012. It is a member of several working groups, including the United Nations Net-Zero Banking Association (NZBA), the United Nations Responsible Banking Principles Working Group, the Global Compact Turkey Group, SKD Turkey (Business World and Sustainable Development Association), the Banks Association of Turkey (TBB), the Role of the Financial Sector in Sustainable Growth Working Group, and the Turkish Industrialists’ and Businessmen’s Association (TÜSİAD) Environment and Climate Change Working Group. Throughout these efforts, Garanti BBVA maintains close cooperation with all key stakeholders—including industry players, regulators and supervisors, investors, and civil society organizations.

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

In its 2024 PRB Impact Report Garanti BBVA reports that it identified and worked on strategic business opportunities to increase positive and reduce negative impacts as follows:

In 2024, one of Garanti BBVA’s key strategic priorities was the development of sustainable solutions, driven by the following growth levers:

• Formulating sector-specific strategies for clients, with a focus on promoting the adoption of low-carbon technologies across energy-intensive industries, utilizing the bank’s advisory expertise in relevant areas.
• Expanding the business by creating targeted products that address specific issues and incorporate more ESG criteria, such as inclusive growth through infrastructure projects and sustainability-linked loans.
• Setting ambitious targets to accelerate business growth by leveraging digital capabilities, offering innovative and disruptive value propositions in selected verticals.
• Financing emerging sustainable technologies by revising existing sustainable finance standards to include innovations like hydrogen batteries, carbon capture, utilization, and storage (CCUS) technologies.
• Enhancing risk management capabilities and implementing automated reporting processes to adopt data-driven analytics in the sustainability arena.

 

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 Garanti BBVA, 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.garantibbvainvestorrelations.com/en/images/pdf/GBFR24_ENG_App6.pdf

Note to Garanti BBVA: 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.

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.

Garanti BBVA incorporates the concerns of its stakeholders—including customers, employees, shareholders and investors, suppliers, regulators, and society at large—into its business and activities. Key issues addressed include social and environmental challenges, diversity, fiscal responsibility, human rights, and the prevention of corruption and unlawful behavior. The Bank engages in dialogue with both internal and external stakeholders through various channels, using their feedback to identify priority issues.

The Bank is actively involved in numerous initiatives, collaborating closely with all stakeholders in these efforts. These initiatives focus on several key areas:

• Universal Frameworks of Reference: Garanti BBVA and the BBVA Group were founding members and advocates of the UNEP FI Principles of Responsible Banking. In 2023, Garanti BBVA joined the central group tasked with formulating the 2030 strategy for the UNEP FI Responsible Banking Principles.
• Alignment with the Paris Agreement: Garanti BBVA is a member of the Net Zero Banking Alliance promoted by UNEP FI, as well as the Science Based Target Initiative.
• Market Standards: The Bank promotes the Equator Principles, the Green Bond Principles from ICMA, the Social Bond Principles, the Green Loan Principles from LMA, and other industry-established standards, including the EU Taxonomy.
• Transparency: Garanti BBVA publishes a summary index based on TCFD recommendations and a GRI standards content index for impact materiality reporting in its integrated annual reports.
• Financial Regulation: The Bank actively participates in various consultations and initiatives with regulatory and supervisory bodies, such as the Turkish Banks Association, to advance sustainable finance regulations.

For over a decade, Garanti BBVA has engaged in various supranational initiatives. In addition to its commitment to the United Nations Global Compact and its role as a signatory to the United Nations Environment Programme Finance Initiative (UNEP FI), the Bank has participated in 30 initiatives and contributed to 45 working groups since 2012. This includes involvement in the United Nations NetZero Banking Alliance (NZBA), the Responsible Banking Principles Working Group, Global Compact Türkiye, SKD Türkiye (Business World and Sustainable Development Association), the Banks Association of Türkiye (TBB), the Role of the Financial Sector in Sustainable Growth Working Group and the Environment and Climate Change Working Group of the Turkish Industrialists’ and Businessmen’s Association (TÜSİAD). The Bank maintains close collaboration with all key stakeholders, including industry representatives, regulators, investors, and civil society organizations.

Notable initiatives in 2023 included:

• Participation by the Sustainability and Sustainable Finance teams in the United Nations 28th Conference of the Parties to Climate Change (COP28). They engaged in discussions on topics such as investment in green growth within developing economies, managing physical and transitional climate risks in banking, and the role of artificial intelligence and hydrogen. They assessed the impact of new technologies on sustainable practices in agriculture, supply chains, and industry. Türkiye’s energy transformation plan was showcased at the Türkiye pavilion, emphasizing the need for innovation and reform within the industry, alongside specific financing for TÜSİAD’s Border Carbon Regulation Mechanism. Additionally, Garanti BBVA’s sustainability and finance teams attended the United Nations Climate Change Conference (COP27) in November, engaging with various stakeholders at conferences and panels, as well as one-on-one meetings.
• The “Sustainable Future in Export” events organized by Garanti BBVA, initiated in 2022 to support companies exporting to the European Union in aligning with the European Green Deal and fostering sustainable investments, were held in Gaziantep and Bursa in 2023, successfully attracting over 180 participants and reaching more corporate clients.
• Garanti BBVA also contributes to the Banks Association of Türkiye (TBB) Sustainability Working Group, which aims to inform banks on sustainability-related matters. The Bank’s efforts included input into the “Draft Communiqué on Green Asset Ratio” published by the BRSA as part of the group’s initiatives. The sustainability experts at the Bank remain actively involved in developing methodologies for assessing transition risks going forward.

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

In its 2023 PRB Reporting and Self-Assessment Template Garanti BBVA reports that it works with its clients and customers to encourage sustainable practices and enable sustainable economic activities as follows:

For several years, sustainability has been one of Garanti BBVA’s six strategic priorities, and the bank is committed to embedding it into all aspects of its operations with its stakeholders. Additionally, the bank’s sustainability strategy is in alignment with the overarching framework of the BBVA Group.

• In 2022, the BBVA Group’s Board approved an updated General Sustainability Policy aimed at supporting clients in their transition to sustainable business models, focusing on climate change, natural capital, and inclusive growth. Garanti BBVA is currently reviewing its own policy to ensure alignment and broaden its scope.
• The bank has a sustainable product framework for its Corporate and Investment Banking (CIB) activities, a framework for issuing bonds linked to the Sustainable Development Goals (SDGs) and a strong commitment to human rights, consistent with the Group’s framework.
• The BBVA Group’s Environmental and Social Framework has been adjusted to incorporate stricter measures that respond to the evolving social and environmental conditions in Türkiye. This framework sets lending prohibitions at the project level and includes client-level monitoring plans.
• The Group also has an internal Sustainable Finance Standard, which draws inspiration from the European taxonomy and market best practices. Garanti BBVA adheres to all sustainable finance standards mandated by the BBVA Group and provides monthly and annual reports on its sustainable finance metrics, with specific thresholds applicable at the country level.
• In 2023, both the BBVA Group and Garanti BBVA established internal processes to address greenwashing, aiming to monitor and mitigate risks associated with public perceptions of sustainability.

These policies and frameworks apply to all customer segments and operational areas.

Garanti BBVA collaborates with its clients to enhance sustainable business practices in the economy through the green and social products and services it offers. Here’s how the integration of Environmental, Social, and Governance (ESG) aspects occurs in client relationships:

ESG Support for Wholesale Clients (Corporates and Large Enterprises) and Companies
At the wholesale level, Garanti BBVA provides a range of sustainable financing solutions, from specific use-of-proceeds products to sustainability-linked loans. ESG risks associated with clients are evaluated using sector-specific questionnaires with input from data providers. For clients in high-intensity, hard-to-abate sectors where climate transition risks are prominent, the bank assesses each client’s transition ambitions and updates those assessments annually using real data, such as emissions intensity and Science-Based Targets Initiative (SBTi) and/or Net-Zero aligned reduction targets. The assessments are specialized by sector and aimed at guiding clients in defining strategies that align with the Paris Agreement objectives and advance the United Nations 2030 Sustainable Development Agenda, while also offering sustainable financing solutions (both debt and equity) to support their decarbonization efforts.

Furthermore, all customers can access information and a catalogue of sustainable products on the Garanti BBVA website. The bank provides detailed information about these products, sustainability advice, and insights into their environmental impacts through its carbon footprint calculator and sector impact analysis tool, launched in 2022.

ESG Support for Retail Clients
Garanti BBVA assists its retail clients in integrating ESG practices through one-on-one meetings, public events, consulting partnerships with technology and consulting firms, and other advisory services. This advice is delivered through both digital channels and the bank’s branch network, creating a comprehensive service model that includes raising awareness, project design, and sponsorships for NGOs involved in community and public investments.

The bank’s managers, mobile banking service catalog, and corporate website offer an extensive range of sustainable investment and financing products, including several sustainable investment funds for retail investors.

Retail customers can access loans aimed at sustainable mobility, energy-efficient housing, green mortgages, rooftop PV loans, and more. In 2022, the bank launched a partnership with the Turkish Standards Institute (TSE) to enable its retail clients to receive consultancy services regarding the EU’s Carbon Border Adjustment Mechanism (CBAM). Another key focus area for Garanti BBVA is Inclusive Growth, where the bank offers tailored products and mentorship programs for vulnerable populations, particularly women-owned businesses and micro-SMEs. The bank’s support program for women entrepreneurs has been operational since 2006.

Garanti BBVA makes sustainability information accessible to clients through its corporate website and various digital platforms. The corporate website features news and articles, while the transactional banking website and mobile app provide details on the bank’s sustainable products, enabling clients to view and contract them. The Garanti BBVA mobile banking app also offers a feature for clients to calculate their carbon emissions based on their automatic payment data. Additionally, the app provides insights into greenhouse gas emissions, water consumption, and tips for reducing carbon footprints, such as choosing low-carbon transport options, using energy-efficient electronics, minimizing unnecessary packaging, and increasing recycling.

 

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 Garanti BBVA, 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.garantibbvainvestorrelations.com/en/images/pdf/GBFR23_ENG_App6.pdf

Note to Garanti BBVA: 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.