2023 SUSTAINABILITY REPORT
SUSTAINABILITY REPORT ANNUAL REPORT PERFORMANCE INDICATORS GRI CONTENT INDEX SASB INDEX
ESG MANAGEMENT AND STRUCTURE AT ZIRAAT PARTICIPATION

Ziraat Participation has established a sustainability governance structure that prioritizes addressing environmental, social, and governance risks in alignment with its commitment to sustainable banking.

Sustainability practices are conducted under the supervision of the Ziraat Participation Board of Directors and the leadership of the CEO.

The Sustainability Committee, chaired by the CEO, is actively engaged in the coordination of the Bank's sustainability practices and establishing the sustainability strategy and goals.

The Sustainability Committee, established with the involvement of the Bank's senior management, sets and reviews the goals and material topics and takes the necessary decisions. The Board of Directors evaluates and approves the decisions.

The Committee is also responsible for monitoring the impact of environmental and social activities, ensuring the compliance of projects, and monitoring other material topics determined within the scope of the sustainability management system.

At Ziraat Participation, units are assigned as required to work on strategic projects.

When necessary, relevant Department Heads are invited to the Committee meetings. The Committee convenes annually or as needed at the Chairperson's discretion. Decisions of the Committee are made through a majority vote. In case of equal number of votes, the Chairperson's vote shall be decisive.

Ziraat Participation will require compliance with the strategies and criteria outlined by the Sustainability Committee in all projects exceeding certain limits.*

The monitoring and coordination of sustainability-related activities in the Bank in terms of umbrella activities are carried out by the Strategy Planning Department, Strategy Planning and Sustainability Services. The secretariat duty of the Committee is also fulfilled by the same Department. Within the scope of this duty, it carries out the following tasks:

*For detailed information about ESRA, please refer to Our Financial Assets section.

Six working groups operate under the Sustainability Committee.

The competencies needed for the relevant project are incorporated into these working groups, and when necessary, consultancy and similar services are received from external resources and best practices are utilized. The number and focus areas of the working groups, which have an important place in the sustainability structure of Ziraat Participation, may vary according to the pertinent sustainability agenda and the Bank's strategies.

Ziraat Participation Sustainability Working Groups and Their Duties

Sustainability Corporate Governance Group

Updating sustainability policies

Conducting internal audits of sustainability initiatives

Coordinating sustainability reporting

Corporate Social Responsibility and Training Group

Identifying and implementing Corporate Social Responsibility project themes

Conducting sustainability activities and sponsorship activities

Organizing sustainability training programs within the Bank and ensuring capacity development

Operational Environmental Impacts Group

Planning and monitoring energy and environmental management initiatives at our buildings

Developing and ensuring the continuity of a greenhouse gas inventory of our Bank's internal emissions

Conducting sustainable supply chain operations

Planning and implementing solutions to optimize savings and efficiency for office environments

Dolaylı Çevresel Etkiler Grubu

Implementation of Environmental and Social Risk assessment system for Project Loans

Providing consultancy services, project monitoring and reporting activities for Environmental Social Risk assessments

Conducting an overall environmental social risk assessment analysis of the loan portfolio

Sustainable Sukuk and Products Group

Developing and updating the sustainable finance framework

Formulating financing products with a focus on sustainability

Providing assistance for sustainable Sukuk and other borrowing operations

Establishing connections with international financial institutions

Climate Risks Group

Ensuring measurement and management of climate risks

Ensuring integration of climate risks into the overall risk system

Calculating financed emissions

The duties of the Ziraat Participation Sustainability Coordination Office

ZIRAAT PARTICIPATION SUSTAINABILITY STRUCTURE

Responsibilities and Authorities of the Ziraat Participation Sustainability Committee

The Ziraat Participation Sustainability Committee serves as the highest-level body responsible for establishing the Bank's sustainability goals and material topics.

Ensuring the coordination of the business plans and the operational tasks within the scope of the Bank's sustainability strategy, vision, and goals,

  • Developing the Sustainability Policy and complementary policies and updating them as needed, ensuring integration into all business processes,
  • Managing the potential environmental, social, and economic risks and opportunities that may arise within the scope of financed projects and other loans,
  • Tracking national and international legislation and standard approaches concerning environmental and social risks, which are material in terms of Bank's crediting process,
  • Establishing the Bank's sustainability network - Identifying the areas and institutions that the Bank will collaborate with in this context,
  • Adopting sustainability-oriented initiatives within the Bank and supporting capacity development,
  • Developing social responsibility projects,
  • Monitoring and integrating the Bank's studies on banking products and processes that support sustainable development,
  • Managing direct and indirect environmental and social impacts, closely monitoring the efforts to mitigate these impacts,
  • Managing the potential risks that may have adverse impact on the reputation of Ziraat Participation,
  • Ensuring communication of sustainability initiatives to be conducted within the Bank,
  • Defining the duties, authorities, and responsibilities of the Sustainability Coordinator and additional sub-working groups to be established,
  • Providing assessment of sustainability-oriented measurements and reporting, review and approval of the sustainability-related section of the activity report,
  • Ensuring that all decisions taken and projects conducted within the framework of the Bank's sustainability governance system comply with Ziraat Participation's other policies and relevant guidelines.