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.

 

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 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

Note to İşbank: 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.

İşbank actively interacts with a diverse array of stakeholders, including clients, employees, investors, and the broader community. As part of its commitment to sustainability, the bank conducts a materiality analysis by engaging both internal and external stakeholders to identify its sustainability priorities. This process is aligned with the AA1000 Stakeholder Engagement Standard.

Stakeholder groups involved in this process encompass employees, customers, investors, non-governmental organizations, industry associations, international bodies, financial institutions, subsidiaries, business partners, public authorities, suppliers, and academic institutions. Feedback is collected through online surveys, allowing the bank to understand stakeholder perspectives on key issues and their expectations regarding its sustainability initiatives.

The materiality analysis is reviewed annually and updated as needed. In establishing 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 adopts a “double materiality” approach, which considers both how issues may impact business strategies and their financial and non-financial consequences. Each material issue is assessed for its potential financial and reputational risks 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 the bank’s 2024 Integrated Annual Report.

Furthermore, İşbank actively supports numerous sustainability initiatives and maintains memberships in various organizations. The bank is part of the Global Compact Turkey Sustainable Banking and Finance Working Group, which aims to promote sustainability within Turkey’s financial sector and encourage private sector investment towards achieving the Sustainable Development Goals. A comprehensive list of the initiatives supported by the bank can be found in the “Supported Initiatives” section of its 2024 Integrated Annual Report.

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

In its 2024 PRB Responsible Banking Progress Statement İşbank reports that it works with its clients and customers to encourage sustainable practices and enable sustainable economic activities as follows:

Adhering to the principle of providing responsible, transparent, and easily understandable banking services at all times, İşbank is dedicated to strengthening financial inclusivity by providing accessible services to everyone, anytime, through its extensive physical service network and digital channels. The bank seeks to deliver an exceptional customer experience across all touchpoints, serving clients in personal, commercial, corporate, and private banking segments. İşbank has developed policies and procedures to make sure it serves its customers responsibly and fairly, as outlined in its Ethical Principles and Code of Conduct.

In alignment with its strategic priorities and its commitment to achieving net-zero emissions by 2050, İşbank actively supports its clients’ green transition. İşbank’s transition strategy does not necessarily mean phasing out, but supporting clients in their transition to a carbon neutral economy and managing climate risks. While for the coal sector phase-out plans are on the agenda, for other high emitting sectors İşbank will be working on plans to encourage its customers to transition to low-carbon economy, by focusing its 2030 and interim targets on carbon-intensive sectors.

As part of its decarbonization initiatives, İşbank undertook a systematic process of identifying and assessing the key levers for each carbon intensive sector. Evaluating each lever with precision is key for formulating a realistic and impactful decarbonization strategy. This process enables İşbank to comprehend the scale and timing of its new investments, thereby crafting a transition plan aligned with the realities of its stakeholders, broader ecosystem, and available technologies.

With this understanding, İşbank has developed sector specific decarbonization strategies for each high-emitting sector in its portfolio. The key steps in the bank’s approach to developing its transition plan are:

• Baselining sector specific carbon emissions
• Identifying key levers for effective client engagement
• Conducting impact modelling and feasibility assessments
• Target setting
• Developing detailed sector specific action plans

By diligently following these steps, İşbank aims to not only fulfill its commitment to NZBA but also to engage its clients in the process, to ensure it is continuing to address their most pressing needs. This approach demonstrates the bank’s commitment to contributing to the global efforts to combat climate change.

İşbank’s transition pathway represents a strategic response to a pressing environmental challenge, highlighting its role as a responsible and forward-thinking financial institution. The bank has published a preliminary transition plan that outlines its approach to the transition by establishing sector-specific emission baselines, setting reduction targets, and developing actionable strategies while actively engaging with its customers. This initial plan serves as both a roadmap for reducing İşbank’s carbon footprint and a client engagement tool, aligning with the bank’s commitment to the NZBA to achieve net-zero emissions by 2050. İşbank plans to disclose its comprehensive transition strategy in the near future.

The bank promotes green and sustainable development by financing projects related to renewable energy, energy efficiency, and resource conservation, supporting the shift toward a net-zero carbon economy. İşbank also enhances financial inclusion through its extensive physical branch network and digital channels, ensuring accessible services for all. Achieving net-zero emissions requires collaborative efforts with İşbank’s clients and cannot be accomplished by the bank alone. It involves developing innovative products and services that facilitate and support the green transformation of its portfolio. In this context, İşbank not only provides financing solutions but also strives to raise awareness about the importance of transitioning to a low-carbon economy. For example, in 2024, İşbank accelerated the digital and green transformation of SMEs—the backbone of the economy—through the ‘Twin Transformation Journey of 100 SMEs’ project, implemented in partnership with MEXT Technology Centre. This initiative focuses on reducing costs, increasing efficiency, enabling green investment, and helping SMEs adapt to decarbonization and environmentally friendly production regulations introduced by new trade rules through digital transformation.

As a key trading partner of the European Union, the Carbon Border Adjustment Mechanism (CBAM) poses a potential risk for İşbank’s clients exporting to the EU. While this mechanism may lead to increased economic costs for Turkish exporters, particularly SMEs that are less equipped to handle significant changes, İşbank views it as an opportunity to support the green transition. To this end, the bank is conducting advisory meetings with exporting clients to enhance their understanding of the upcoming challenges and opportunities associated with the CBAM. Additionally, İşbank provides guidance on how clients can adapt to low-carbon incentives and aligns its product offerings to meet their diverse needs.

In terms of financial solutions, İşbank supports its clients’ green transformation through a broad range of products. The bank fosters sustainability investments by offering both financial and non-financial solutions, helping clients maintain their market presence within the EU and stay ahead of the Green Deal-driven transformation. İşbank operates a comprehensive sustainable finance model that covers the entire process—from sourcing resources and developing sustainability-focused products to facilitating green transformation.

Moreover, İşbank provides free digital sustainability solutions to SME customers to lower the costs associated with green initiatives. These solutions enable SMEs to access services such as carbon footprint measurement, real-time energy consumption monitoring, and non-financial support for investments aligned with sustainability objectives. The bank aims to assist SMEs in complying with new environmentally friendly production regulations, reducing costs, and enhancing efficiency during their transition to a green economy.

İşbank is also a leader in financing renewable energy projects in Turkey. Since 2015, all new project financing for electricity generation investments has been directed exclusively toward renewable energy initiatives. Emphasizing the environmental, social, and economic impacts of its lending activities, İşbank actively supports its clients’ adoption of green and sustainable practices. For any new investment project financed by İşbank with an investment amount exceeding USD 10 million, a comprehensive evaluation of environmental and social risks and impacts is conducted. Projects within this threshold are subject to environmental and social risk assessments, with a risk score assigned based on the evaluation results. If a project is deemed high risk, an environmental and social action plan is developed in collaboration with the client to mitigate or eliminate identified impacts. The progress of these measures is monitored by independent consultants when necessary.

Additionally, İşbank has established a process to evaluate the environmental and social risks within its commercial loan portfolio. This involves a set of questions, mainly derived from the “Environmental and Social Question Set,” designed to help companies identify potential environmental and social risks and enhance their awareness and resilience concerning these risks. This process is regularly reviewed and updated to address emerging needs. Currently, İşbank is working on implementing an Environmental & Social (E&S) due diligence process for its commercial loan portfolio, which is not yet covered by the existing E&S Risk Assessment Tool. The goal is to assess customers’ Environmental, Social, and Governance (ESG) maturity, as well as their awareness and resilience to climate-related risks, through questionnaires that include both E&S and climate-focused questions. Once fully deployed and integrated into the bank’s IT systems, this new approach will incorporate E&S risk assessments into the client onboarding process across all banking levels, enhancing the bank’s understanding of climate-related issues and facilitating climate risk evaluations during client onboarding.

 

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 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

Note to İşbank: 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.