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Responsible banking Act. 26 Mar 2021

Garanti BBVA will stop financing coal in Turkey in 2040

Garanti BBVA reaffirms its commitment against climate change and announces that it will stop financing coal-related activities.

This commitment complies with the recommendations of the Intergovernmental Panel on ClimateChange (IPCC). With this, Garanti BBVA intends to encourage sustainable investments among clients in the sector and will continue to provide financing for its clients' green investments.

Regarding this news, Recep Baştuğ, CEO of Garanti BBVA, stated that sustainability is an important part of the institution's corporate culture and that great importance is attached to the fight against climate change. “Climate change is the most important global crisis facing the world from an economic and social welfare point of view. That is why we urge the business world and stake holders to take action,” he said.

On this note, “now, we go one step further and commit to not financing coal-related activities. By 2040, we will reduce our risk portfolio for coal-related activities to zero and completely abandon this sector,” he added. According to Baştuğ, Garanti BBVA will not finance new investments related to coal plants or mines.

According to Baştuğ, Garanti BBVA will help clients operating in the coal sector to shift their investments to greener environments and thus accelerate the just transition to low-emission energy in Turkey. The institution is prepared to actively assist clients in this process and provide them with all kinds of support, whether financial or informational, in their transition to the use of sustainable energy sources.

Garanti BBVA and its commitment to sustainability

Garanti BBVA is the sector leader in financing wind power plants in Turkey, with a market share of approximately 25 percent. Since 2014, all new energy projects financed by the bank are investments in renewable energy. In 2015, Garanti BBVA published an action plan against climate change to contribute to the transformation of Turkey into a low-carbon economy and to support the fight against climate change. Renewable energies account for 73 percent of Garanti’s project financing portfolio, while financing provided to this sector has exceeded $5.3 billion.

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