As a signatory of the Net Zero Banking Alliance, İşbank announced intermediate emission reduction targets for three carbon-intensive sectors as part of its efforts to manage the impacts arising from its loan portfolio.
While selecting the sectors to set the targets, the Bank takes into consideration the primarily defined sectors by Net Zero Banking Alliance, the weight of these sectors in its loan portfolio and the sectoral climate change heat map. In this regard, the Bank carried out its first targeting in power generation, cement and iron and steel sectors, which are also within the scope of European Union Carbon Border Adjustment Mechanism. The Bank followed the Partnership for Carbon Accounting Financials (PCAF) methodology, for calculating the financed emissions in these sectors. In order to maximize the quality and accuracy of the data that forms the basis of the calculation, the Bank conducted detailed surveys and one-on-one studies with customers. While determining sectoral reduction targets global science-based scenarios were taken into account.
Supporting the green transformation in the economy, in addition to the intermediate targets of the Net Zero Banking Alliance, the Bank also announced it would phase out financing of coal related activities by 2040. In 2020, as a decision that would shape the sector, the Bank announced that it would not finance new thermal power plant investments for generating electricity using coal and natural gas. In 2021, the Bank also disclosed that it would not finance new coal mining investments.
The targets set represent a fundamental element of the Bank's sustainability strategy and reflect its goal of being a leading partner in its customers' green transformation.
With the decarbonization efforts, the Bank aims to:
accurately identify the actions that customers can take on their decorbanization journey and provide guidance to customers in this context
provide the financial support needed for green and sustainable practices that customers need in their decarbonization process
create financial impact models for the differentiated needs on a sectoral basis, and track the development of customers in this area
Note: Numerical values in the table may be revised depending on changes in methodologies.