For the volume of sustainable finance being provided to the Turkish economy, as well as innovation in sustainability products, Akbank wins the award as best bank for environmental, social and governance this year.
AfE 2024
It is one of the domestic market’s leaders in providing green and social loans to the corporate sector, and has recently upped its ambition to provide sustainable finance in support of the economy’s transition.
From an original target of providing TL200 billion ($6 billion) of sustainable finance by 2030, the bank has now committed to TL800 billion, with TL139 billion allocated last year.
A good chunk of that was in the form of green project-finance loans, mostly financing renewable-energy projects, clean transportation and circular economy sectors in the country.
The bank also collaborated with Turkish export guarantee company İhracatı Geliştirme (IGE) to introduce a financial support package for small and medium-sized enterprises that are trying to make their operations more sustainable.
The collaboration offers term loans of up to TL19 million, with 80% guaranteed by IGE. Some of the areas that qualify for the loans include renewable energy, energy efficiency, waste management, water and waste-water management, clean transportation and sustainable agriculture.
Together with its financing support, Akbank also led new innovations in sustainable finance last year, including Turkey’s first sustainable deposit product, which helps corporate clients contribute to projects aligned with the United Nations Sustainable Development Goals.
On launch in December last year, the product attracted five of the bank’s clients, who deposited a total of TL86 million.