Our Approach to Sustainability

Albaraka Türk's sustainability governance is carried out under the authority and responsibility of the Corporate Governance and Sustainability Committee, which is structured under the Board of Directors. The Committee consists of two Board Members and the Investor Relations and Sustainability Manager.

The oversight of sustainability activities is managed by committee members who possess expertise in sustainability.

At Albaraka Türk, the development of strategies related to climate change, setting objectives, integrating them into business processes, and monitoring sustainability performance are directly managed through the Corporate Governance and Sustainability Committee, which is structured under the Board of Directors. The monitoring and auditing of climate-related risks and opportunities are carried out through the Risk and Audit Committees.

The Bank takes a comprehensive approach to sustainability through its governance structure, which includes the Corporate Governance and Sustainability Committee, the Sustainability Executive Committee, and sustainability sub-working groups. This committee has been continuing its sustainability efforts since 2017. Additionally, the Sustainability Executive Committee includes the Investor Relations and Sustainability Manager and the Deputy General Manager responsible for Investor Relations and Sustainability.

You can find information about the Corporate Governance and Sustainability Committee and the Sustainability Executive Committee here.

Albaraka Türk guides its approach to sustainability through its responsible and pioneering banking approach based on environmental, social, and governance responsibilities. The Bank aims to transfer today's resources to the future in a balanced manner through its “Connected to Us” approach.

Based on the sustainable banking model, the Bank has developed its sustainability strategy within the framework of regulations, climate and energy, sustainable finance, human rights, governance, and corporate social responsibility to which it is subject. Acting with a responsible banking approach while fulfilling its obligations to its environment and society, Albaraka Türk considers sustainability activities when setting its banking goals and develops its business model within the scope of the Environmental

Social Governance System (ESG).

In this context, priority is given to future-oriented infrastructure preparations in line with national and international standards in order to create a sustainable banking ecosystem. The prioritization analysis conducted with stakeholders on issues such as digital innovation, business ethics, environmental risk assessment in lending, and employee experience is also of great importance in the Bank's sustainability strategy.

You can access our sustainability strategy here.

2015:

• Albaraka Türk participated in the CDP process as part of the global fight against climate change.
• ABG announced the “Albaraka Goals” (2016-2020) in line with the United Nations Sustainable Development Goals.

2016:

• Albaraka Türk launched its Sustainable Banking Program. Education, healthcare, the environment, and vulnerable groups were identified as the focus areas within the program.
• The Albaraka Türk Headquarters building received a LEED GOLD Certification.

2017:

• The sustainability efforts within the Sustainable Banking Program gained momentum.
•  Albaraka Türk voluntarily responded to the CDP Climate Change survey and received a grade of C.
•  Albaraka Türk launched the world’s first Start-Up Acceleration Center among participation banks, named Albaraka Garage.

2018:

• Albaraka Türk responded to the CDP Climate Change and Water Security surveys, receiving a grade of C in both.
• Albaraka Türk, which places great importance on employee engagement, was listed by Great Place to Work among “Turkey’s Best Employers.”

2019:

• Albaraka Türk became the first and only participation bank to be included in the BIST Sustainability Index.
• Albaraka Türk improved its CDP Climate Change score to B and its Water Security score to B-.
• ABG Goals Program achieved high target realization rates in education, healthcare, employment, and renewable energy sectors.

2020:

• Albaraka Türk set a precedent by publishing the 2019 Sustainability Report on its corporate website for stakeholders' attention.
•  Albaraka Türk responded to the CDP Climate Change and Water Security surveys. The Bank's CDP Climate Change score was announced as A-, and the Water Security score was B.
• Albaraka Türk calculated its total climate impact and committed to setting science-based targets for carbon emission reduction within two years.
• The Bank placed climate-related risks on its agenda and began implementing the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD).

2021:

• Albaraka Türk published its 2020 Sustainability Report on the Bank's website for stakeholders' attention.
• Albaraka Türk responded to the CDP Climate Change and Water Security surveys. The Bank’s CDP Climate Change score was B-, and the Water Security score was B.
•  Albaraka Türk maintained its place in the BIST Sustainability Index for the 2021-2022 period, retaining its position as the first and only participation bank in the index.
• Albaraka Türk continued supporting the Zero Waste Project, initiated in 2015, organized by the Ministry of Environment, Urbanization, and Climate Change.
• The Bank renewed its LEED Gold Green Building Certification and maintained its title as the bank with a green-certified headquarters.

2022

• Albaraka Türk responded to the CDP Climate Change and Water Security surveys. The Bank’s CDP Climate Change and Water Security scores were both announced as B.
• Albaraka Türk completed the infrastructure work for its Sustainable Green Sukuk.
• The infrastructure work to calculate the Bank’s indirect emissions in its credit allocation processes gained momentum.

2023:

• Albaraka Türk met 100% of its electricity consumption from renewable energy sources in 2023. With the purchase of 14,000,000 kWh of YEK-G certificates, the Bank eliminated indirect emissions from imported energy sources (Category 2 Purchased Electricity).
• The Bank’s CDP Climate Change and Water Security scores were both announced as B.
• As a pioneer, Albaraka Türk became the first participation bank to publish an integrated activity report.
•  Albaraka Türk, as the first participation bank in Turkey, introduced its renewed Vision, Mission, and Values, along with a new employer brand during the "Birlikteyiz" program, which was followed live by all employees across Turkey.

2024:

• Sub-working groups to operate under the Sustainability Executive Committee were formed.
• Infrastructure work and a roadmap were created regarding the Green Asset Ratio Regulation.
• Infrastructure work was initiated under the Turkey Sustainability Reporting Standards (TSRS).

2025:

• The first Sustainability Report in compliance with the Turkey Sustainability Reporting Standards (TSRS) was published.