Ziraat Participation 2023 Sustainability Report

SASB INDEX

This index includes Ziraat Participation's disclosures within the scope of Commercial Banking Standards published by the independent standard-setting Sustainability Accounting Standards Board (SASB). Ziraat Participation aims to expand its disclosures regarding the Standards in the coming period and to respond to a wider number of topics. The disclosures included in the SASB Index refer to the year ending December 31, 2023.

SUSTAINABILITY DISCLOSURE TOPICS & METRICS

Table 1. Sustainability Disclosure Topics & Metrics

Topic	Metric	Category	Code	Response
Data Security	(1) Number of data breaches, (2) percentage that are personal data breaches, (3) number of account holders affected	Quantitative	FN-CB-230a.1	There are no complaints concerning breaches of customer privacy and losses of customer data during the reporting period.
Data Security	Description of approach to identifying and addressing data security risks	Discussion and Analysis	FN-CB-230a.2	Ensuring data privacy and security The role of human factor in ensuring data privacy and security
Financial Inclusion & Capacity Building	(1) Number and (2) amount of past due and nonaccrual loans or loans subject to forbearance that qualify for programmes designed to promote small business and community development	Quantitative	FN-CB-240a.1	A Wide Range of Products, Services and Solutions with High Value Proposal Sustainability-Oriented Products
Financial Inclusion & Capacity Building	(1) Number and (2) amount of past due and nonaccrual loans or loans subject to forbearance that qualify for programmes designed to promote small business and community development	Quantitative	FN-CB-240a.2	A Wide Range of Products, Services and Solutions with High Value Proposal Sustainability-Oriented Products
Financial Inclusion & Capacity Building	Number of participants in financial literacy initiatives for unbanked, underbanked, or underserved customers	Quantitative	FN-CB-240a.4	Aligning Material Topics with the Sustainable Development Goals
Incorporation of Environmental, Social, and Governance Factors in Credit Analysis	Description of approach to incorporation of environmental, social and governance (ESG) factors in credit analysis	Discussion and Analysis	FN-CB-410a.2	Ziraat Participation's List of Non-financed Activities guides the Bank's credit allocation activities. In addition to the list of non-financed activities, the assessment of environmental and social risks in credit analyses is applied to loans whose investment amount exceeds a certain threshold. These studies are carried out within the scope of ENVIRONMENTAL AND SOCIAL RISK ASSESSMENT APPROACH, which aims to identify, analyze, classify, reduce and monitor environmental and social risks. Environmental and Social Risk Assessment Approach and Structure
Business Ethics	Total amount of monetary losses as a result of legal proceedings associated with fraud, insider trading, antitrust, anticompetitive behaviour, market manipulation, malpractice, or other related financial industry laws or regulations	Quantitative	FN-CB-510a.1	There were no recorded cases in this regard during the reporting period.
Business Ethics	Description of whistleblower policies and procedures	Discussion and Analysis	FN-CB-510a.2	Ziraat Participation employees who believe that practices contrary to the legislation and the Bank's Ethical Principles are being implemented can directly notify the Inspection Board Presidency via the Ethics Line access link on the Bank's portal. Ziraat Participation guarantees that the reported issues will not be shared with the employee's managers and colleagues. Bank employees can report via the portal and also communicate directly with the members of the Inspection Board.
Systemic Risk Management	Global Systemically Important Bank (GSIB) score, by category	Quantitative	FN-CB-550a.1	According to the methodology drawn up by the Basel Committee on Banking Supervision, Ziraat Participation is not considered to be a Global Systemically Important Bank (G-SIB) and, accordingly, does not have a G-SIB score. On the other hand, the Bank publishes the systemically important bank buffer ratio within the scope of its independently audited balance sheets and footnotes prepared in accordance with Turkish Financial Reporting Standards (“TFRS”). See page 118, Ziraat Participation 2023 Annual Report.
Systemic Risk Management	Description of approach to integrate results of mandatory and voluntary stress tests into capital adequacy planning, long term corporate strategy, and other business activities	Discussion and Analysis	FN-CB-550a.2	See page 69, Functioning of Risk Management System, Ziraat Participation 2023 Annual Report.