Sustainable Finance in Turkey: a strategic focus for Garanti BBVA

As Turkey continues to advance on its sustainability journey, Garanti BBVA is at the forefront of driving sustainable finance initiatives that are critical for the nation’s economic resilience and environmental and social stewardship. Leveraging our deep understanding of the Turkish economy and our commitment to environmental, social, and governance (ESG) principles, we are actively shaping the future of sustainable finance in Turkey.

At Garanti BBVA, we understand that sustainable finance is more than just a trend—it’s a necessity for the future of our planet and the stability of our economy. Our approach is not just about financing sustainable development but also about embedding sustainability into every aspect of our operations and client relationships. Our holistic view ensures that we are not only contributing to environmental protection but also driving long-term economic growth and social well-being.

Garanti BBVA support for companies’ transition plans

Garanti BBVA has been a pioneer in mobilizing capital for sustainable projects in Turkey but also plays a crucial role in supporting companies across Turkey with their transition plans. A transition plan is a vital component of a company’s overall business strategy that outlines targets and actions to support the shift toward a low-carbon economy, including measures to reduce greenhouse gas (GHG) emissions. With growing pressure on companies to meet decarbonization and net-zero commitments in light of recent regulatory developments such as CBAM, these plans are essential for inspiring confidence among consumers, markets, and investors that significant and effective action will follow. 

Garanti BBVA offers advisory services to help companies develop robust transition plans, ensuring they are well-prepared to meet their sustainability goals and maximizing their growth and innovation opportunities. Our approach to high-transition risk sectors like energy, automotive, steel, and cement is centered on our portfolio alignment metric. Additionally, we place significant emphasis on introducing our clients to cleantech innovations. Leveraging BBVA's investments in climate/clean-tech and low carbon focused investments funds allows us to introduce our clients to emerging clean technologies that may transform their businesses.

In this way, we work alongside clients to develop impactful solutions, providing ongoing support in compliance with global standards, helping them decarbonize while enhancing resilience and competitiveness in the evolving low-carbon economy. 

Garanti BBVA’s green agenda

To further strengthen our sustainable business, at Garanti BBVA we work on four strategic pillars:

1. Innovative green products: We are expanding our portfolio of sustainable financial products, such as green bonds, sustainability-linked loans (SLLs) to meet the growing demand for eco-friendly investments. These products are essential for financing renewable energy projects, energy-efficient infrastructure, and other green initiatives that align with Turkey’s net-zero goals. 
2. Client engagement and advisory: Engaging with our clients to promote ESG integration is crucial. We provide tailored advisory services to help clients transition to more sustainable business models, ensuring they contribute positively to environmental and social outcomes. We have pioneered a sustainability-linked loan mechanism with a Scope 3 performance target and we are able to advise on gender equality and social responsibility initiatives, helping companies to meet global standards and drive positive impact.
3. Data-driven decision making: Utilizing advanced analytics, such as TRi and Client Sustainability Toolkit to monitor our clients’ ESG performance, allows us to assess the environmental impact of our investments and make informed decisions that align with our sustainability goals. This data-driven approach ensures that our financial decisions support Turkey’s transition to a low-carbon economy.
4. Cross-sector collaboration: We are committed to fostering partnerships with government bodies, NGOs, and other stakeholders. These collaborations are vital for scaling up sustainability efforts and ensuring that sustainable finance becomes a mainstream practice in Turkey.  

Overcoming challenges and seizing opportunities

While Turkey has made significant strides in sustainable finance, challenges remain. These include the need for stronger regulatory frameworks, the establishment of comprehensive ESG standards, and increased awareness among investors about the long-term benefits of sustainable investments. Garanti BBVA is committed to addressing these challenges by working closely with regulators, industry stakeholders, and our clients to create a conducive environment for sustainable finance. However, by leveraging our know-how on global taxonomies through BBVA expertise, Garanti BBVA helps clients overcome these challenges and seize opportunities for sustainable growth in line with the demands of the global financial markets.    

As we look to the future, Garanti BBVA remains dedicated to advancing sustainable finance in Turkey. Our strategic focus on sustainability is integral to our mission of building a better, more inclusive, and resilient economy. By continuing to mobilize capital for green projects, support the decarbonization of key sectors, assist companies in developing robust transition plans, and comply with the latest regulatory frameworks, we are confident that we can play a pivotal role in shaping a sustainable future for Turkey.