By extending a total of TL 10.5 billion in Pressurized Irrigation Systems loans to 12,459 producers, a contribution was made to water conservation.
Value to Our Future: Sustainable and Livable World
ESG Impact on Sustainable Finance and Lending
In global financial markets, capital flows are evolving beyond the traditional risk-return balance toward an impact-driven dimension, where ESG performance has become a decisive criterion in the investment decisions of international fund providers. In particular, the growing adoption of the ISSB standards at a global scale and investors’ strategies to align their portfolios with Net-Zero targets are increasing demand for sustainability-themed debt instruments.
Ziraat Bank closely monitors these evolving global liquidity dynamics and leverages its strong relationships with IFIs, its extensive correspondent banking network, and foreign investors as a strategic advantage. In its foreign currency funding activities beyond deposits, the Bank utilizes its sustainability performance as a strategic lever, thereby optimizing borrowing costs while diversifying its investor base geographically and sectorally.
The deepening of sustainable finance markets creates new opportunities not only on the funding side but also in asset quality management. In line with Türkiye’s Green Deal Action Plan and the 2053 Net-Zero Target, the ongoing green and social transformation of the real sector generates additional financing needs for renewable energy, energy efficiency, and circular economy investments.
By developing the necessary financial products to support this transformation, Ziraat Bank contributes to the competitiveness of the national economy while steadily expanding its sustainability-focused business volume.
To ensure the effective management of the environmental and social impacts of its lending activities, the Bank implements an Environmental and Social Impact Management System. Within this framework, credit decisions are not based solely on financial risks; they are evaluated through a holistic process that integrates environmental and social considerations. In this systematic approach, environmental and social risks are not limited to policy-level definitions but are managed through assessment, action planning, and monitoring processes.
Projects and loan applications exceeding a defined threshold and not included in the Exclusion List are analyzed in accordance with the Environmental and Social Risk Assessment Model. Risks are categorized, necessary action plans are developed, and progress is monitored on a regular basis.
Through this approach, the Bank ensures that the environmental and social contributions of financed projects are maximized, positioning environmental compliance as an effective management tool that supports sustainable impact across the overall loan portfolio.
Sustainable Finance Framework and Funding Approach
Ziraat Bank has developed its Sustainable Finance Framework to raise funds intended for the financing of eligible loans that generate positive environmental and/or social impacts. First established in 2020, the Framework provides clear and transparent criteria for financing investments that support the transition to a low-carbon economy and benefit stakeholders and society as a whole.
Under this Framework, the Bank issued sustainability bonds in 2021 and 2024. In line with revisions to international principles and guidelines and developments in best practices, the Framework was updated in 2024, and a new Second Party Opinion was obtained from Moody’s Rating.
In line with its leading position in the sector, the Bank plays an active role in financing environmentally responsible credit products and sustainable investments. Within the scope of its Agricultural Ecosystem Financing strategy, it contributes to supporting sustainable production in the agricultural sector, which is among the most affected by climate change. Accordingly, the green and social loan portfolio is being expanded, with the aim of contributing to the UN SDGs through eligible green and social credit categories defined under the Sustainable Finance Framework.
Loans from International Financial Institutions
Ziraat Bank secures sustainability-themed funding under favorable terms through International Financial Institutions (IFIs).
For the 2025 sustainability-linked syndicated loan, the sustainability performance criteria have been defined as “financing sustainable agriculture” and “contributing to the transition to a low-carbon economy.”.
Products and Services Contributing to Sustainable Finance
Sustainability-Linked Syndicated Loans
During the reporting period, Ziraat Bank secured a sustainability-linked syndicated loan in April 2025 amounting to USD 850 million and EUR 789 million, totaling USD 1.75 billion, with participation from 69 banks across 29 countries. In October of the same year, a second transaction was completed, providing an additional USD 509 million and EUR 413 million (totaling USD 988 million), with the participation of 31 banks.
With these transactions, the total amount of sustainability-linked syndicated loans secured by Ziraat Bank in 2025 reached USD 2.8 billion. The funds obtained were primarily utilized for the financing of foreign trade, sustainable agriculture projects, and supporting real sector investments.
Environmental and Social Impact Management in Lending Activities
Ziraat Bank acts with an awareness of the transformative impact that financial institutions have on economic activities, not only in fostering economic prosperity but also in safeguarding environmental and social sustainability.
In this context, the Bank has implemented an Environmental and Social Impact Management System to assess the environmental and social impacts arising from its lending activities within a comprehensive risk management framework.
Adopted and put into effect by the Board of Directors in 2020, the Environmental and Social Impact Management Policy complements the Bank’s Sustainability Policy.
Through this approach, environmental and social risks are addressed not only on a project basis but also at the client level, within a holistic assessment framework.
Under the Policy:
Ziraat Bank includes activities prohibited or restricted under international conventions in its Exclusion List within the scope of its Environmental and Social Impact Management Policy. Such activities are excluded from financial, technical, environmental, and social impact assessments and are not financed by the Bank. Activities not financed by the Bank are listed below:
- Activities for the production of weapons of mass destruction and landmines
- Activities involving conduct violating human rights, including harmful and exploitative forms of forced labor/child labor
- Activities in wetlands designated as RAMSAR (Wetlands of International Importance) areas
- Persons and organizations engaged in products and activities within the scope of the CITES (“Convention on International Trade in Endangered Species of Wild Fauna and Flora”)
- The production or trade of products containing PCBs (polychlorinated biphenyls) - the group of highly toxic chemicals - regardless of sector
- Drift net fishing activities practiced with nets longer than 2.5 km
- Production or trade of ozone-depleting products
- Production and trade of internationally prohibited drugs, pesticides, herbicides, and other harmful substances
- Production or trade of friable asbestos
Action Plans, Monitoring and Reporting
* For projects classified under Risk Category A, the client is required to commission an independent expert/consultant to prepare an Environmental and Social Due Diligence Report and an Action and Monitoring Plan in accordance with the IFC Performance Standards.
* During the investment period, the independent expert/consultant is required to conduct at least one site visit per year, and one additional site visit after the completion of the investment, and to report to the Bank.
Category A
* A risk kategorisindeki projelerde, müşteriden bağımsız uzman / danışman tarafından IFC Performans Standartlarına uygun Çevresel ve Sosyal Durum Değerlendirme Raporu ile Aksiyon-İzleme Planı hazırlanması talep edilmektedir.
* During the investment period, the independent expert/consultant is required to conduct at least one site visit per year, and one additional site visit after the completion of the investment, and to report to the Bank.
Category B
* For projects classified under Category B, based on the assessments of the Bank’s environmental expert, a decision is made as to whether the Environmental and Social Due Diligence Report and the Action and Monitoring Plan will be prepared by an independent expert/consultant, whether the required report and action plan will be prepared by the Bank’s environmental expert, or whether the preparation of an Action Plan will not be required.
Following the completion of the relevant fiscal year, the Annual Implementation Results concerning loans subject to Environmental and Social Impact Assessment are submitted to the Sustainability Committee within the scope of the Bank’s Sustainability Policy.
2025 Practices and Risk Assessment Process
In 2025, 49 projects were subject to environmental and social assessment under the Environmental and Social Impact Management Policy within the scope of Lending Activities. The projects assessed were predominantly concentrated in the manufacturing, energy, trade, and tourism sectors, and the total investment amount of the 49 projects evaluated under the Environmental and Social Impact Management System was approximately USD 6.8 billion.
As of 2025, the environmental and social risk assessment methodology applied to projects with an investment amount of USD 50 million or above continues to be implemented. In addition, efforts are underway to further develop the assessment methodology for 2026 and beyond. In this context, it is planned to set the investment threshold at USD 10 million; to transform the risk assessment model into a more comprehensive structure consisting of 33 questions evaluated across the dimensions of impact, likelihood of occurrence, and manageability; and to classify risks under Categories A, B+, B-, and C.
Sectoral Distribution of Projects Subject to Environmental and Social Impact Assessment
Number of Cheque Accounts by Segment with Cheque Submission
Number of Customers with Cheque Submission by Segment - With Special Rate
Number of Cheque Accounts by Segment with Cheque Submission - With Special Rate
Ziraat Bank Environmental Loan Practices
Climate Change Mitigation and Adaptation in Agriculture
Ziraat Bank has contributed to the development and modernization of Türkiye’s agriculture through the pioneering role it has assumed in financing agricultural production over its 162-year history. While continuing to provide financial support to the agricultural sector, the Bank adopts a holistic approach aimed at strengthening the sustainability of agricultural production within the scope of climate change mitigation.
In this regard, various initiatives are carried out in cooperation with the relevant ministries, public institutions, organizations, and agricultural associations in the areas of water conservation, the use of renewable energy in agriculture, supporting food supply security, and facilitating access to finance..
Ziraat Bank recognizes digitalization as a strategic factor while supporting the economic growth of the agricultural production ecosystem. In line with its “Sustainable Economic Growth for Our Country” approach, the Bank supports farmers in combating climate change through the “Farmer Platform” it has developed.
Through the mobile application, numerous precision agriculture solutions-such as crop health and growth monitoring, real-time rainfall and storm tracking, irrigation recommendations, water stress mapping, and automatic detection of problematic areas-are provided to producers free of charge. As of the end of 2025, the number of users of the Ziraat Farmer Platform reached 120,000. In addition, through loans provided for agricultural mechanization, the Bank facilitates farmers’ access to digital technologies and precision agriculture practices. Ziraat Bank also places importance on awareness-raising and knowledge sharing to enhance adaptation capacity to climate change in the agricultural sector.
Ziraat Bank also places importance on raising awareness and sharing information with the aim of enhancing the agricultural sector’s capacity to adapt to climate change. In this context,
On 28 June 2025, within the scope of the Ziraat Bank Agricultural Ecosystem Meeting, organized for the fourth time under the motto “Our Business is Ziraat, Our Strength is Ziraat” a session titled “Climate Change in Türkiye and the Adaptation of Agricultural Production” was held, and producers were informed about climate risks and adaptation strategies.
On the financing side, in 2025, Ziraat Bank continued to extend loans supporting agricultural investments aimed at combating climate change and achieved an increase in outstanding balances across all relevant product groups.
Within the scope of agricultural investment outcomes:
In 2025, by extending TL 9.5 billion in loans to approximately 1,800 people, financing was provided for plant production in enclosed environments where climate impacts are mitigated.
In 2025, by extending TL 659 million in agricultural renewable energy loans to 755 producers, support was provided to meet the energy required for production from clean and renewable sources.
In 2025, by extending TL 8.2 billion in loans to 2,100 producers, organic farming, good agricultural practices, and biological and biotechnical control practices were supported; contributing to the dissemination of low-carbon and responsible production models.
Environmental Loan Products
Ziraat Bank offers financial solutions under its environmental loan products in line with SDGs, aiming to improve customers’ environmental performance, enhance energy efficiency, and support the transition to a low-carbon economy. As an integral part of its sustainable financing approach, environmental loans have been developed to reduce environmental impacts, promote the efficient use of energy resources, and provide financing for clean energy projects.
The Bank expands its products supporting sustainable transformation not only in corporate and commercial lending but also in retail banking. In this context, the utilization of Green Vehicle Loans, Green Home Loans, Energy Efficiency Management Loans, TOGG Vehicle Loans, and Digital Loan products provided to individual customers continued uninterrupted in 2025. Detailed information on sustainability-focused retail loan products can be found in the Retail Banking section.
In the countries where the Bank’s subsidiaries operate, efforts to combat climate change include the implementation of heat insulation practices in service buildings, the use of energy-efficient lighting systems, and technologies with low energy consumption. Alongside these initiatives, recycling and waste reduction activities are ongoing, with particular measures taken to prevent methane emissions.
With the aim of protecting natural areas and supporting ecosystems, some subsidiaries organize initiatives focused on increasing green spaces, forest conservation, and afforestation. Furthermore, in line with the economic and legal policies implemented by the competent authorities in the countries where the subsidiary banks operate to combat climate change, product development efforts that promote environmentally friendly investments are carried out, while climate training and awareness-raising activities are conducted for employees simultaneously.
