Garanti BBVA Adopts Equator Principles for Sustainable Finance

Turkish Bank Commits to Global Standards for Responsible Project Financing

Garanti BBVA’s Turkish operation has formally adopted the Equator Principles, a move signifying a deeper commitment to sustainable finance and responsible banking practices. This aligns the bank with an international framework designed to guide the financing of large-scale industrial and infrastructure projects.

Formalizing Environmental and Social Risk Management

Since 2011, the bank has integrated environmental and social risk assessments into its credit evaluations. The adoption of the Equator Principles marks a significant advancement, embedding these considerations directly into project financing decisions. The principles provide a ten-rule framework covering risk categorization, impact assessments, stakeholder engagement, and monitoring to mitigate potential harm to communities and ecosystems.

“With this signature, we aim to set an example for the financial sector in our country,” said Mahmut Akten, CEO of Garanti BBVA. “We recognize the responsibility placed on the banking industry in building a more sustainable future. Adopting the Equator Principles is both a strategic milestone and a reflection of our global vision as part of the BBVA Group, which has supported the principles since 2004.”

Mahmut Akten emphasized that sustainability is a core operational component, not merely a regulatory obligation. He highlighted the bank’s proactive approach, considering environmental and social impacts as crucial factors in all financing decisions, from biodiversity conservation to social inclusion and cultural heritage preservation.

Strengthening Risk Governance and Regional Leadership

The Equator Principles are particularly relevant for sectors like energy, transportation, and infrastructure, which often carry the most significant environmental and social risks. The framework applies to various financial structures, including project financing, advisory services, and refinancing.

As a signatory, Garanti BBVA commits to embedding top-tier risk management practices from the outset of project evaluations through the entire financing lifecycle. This includes mandating independent reviews, stakeholder consultations, grievance mechanisms, and regular reporting. This adoption not only bolsters the bank’s risk governance but also reinforces its standing as a leader in sustainable finance within Turkey.

Globally, financial institutions are increasingly integrating ESG factors into their lending practices. For instance, the total volume of sustainable bonds issued worldwide reached over $1 trillion in 2023, demonstrating a growing market trend toward environmentally and socially conscious investments (ICMA 2023).

For more details on the Equator Principles and Garanti BBVA’s environmental and social risk management strategies, interested parties can visit the bank’s website.