İşbank became the first bank in Türkiye to announce its Climate Transition Plan across all carbon-intensive sectors
In line with its efforts to combat climate change and achieving net zero targets, İşbank shared its Climate Transition Plan, which forms the basis of its decarbonization strategy, with the public. Leading the sector with its holistic transformation strategy the Bank became the first Turkish bank to announce emission reduction roadmaps across all carbon-intensive sectors defined by the Net Zero Banking Alliance (NZBA).
Previously standing out as the first bank in Türkiye to announce 2030 emission reduction targets for all carbon-intensive sectors, İşbank now presents sectoral roadmaps and action plans tailored to customer needs through its detailed Climate Transition Plan designed to achieve these targets.
Emission intensity reduction targets
In 2023, İşbank announced its targets to reduce its emission intensity in the cement, iron & steel and power generation sectors, targeting the following emission reductions by 2030:
The Bank had also committed to a phase-out from coal financing by 2040.
As of 2024, İşbank expanded the sectoral scope and set emission reduction targets for the aluminum, real estate, road freight transport, oil and gas, and agriculture sectors. Accordingly, the Bank targets the following emission intensity reductions by 2030:
Furthermore, in the agriculture sector, a product-based approach will be implemented to achieve the following emission reductions:
14% in wheat production
15% in maize production
16% in rice production
Steps to facilitate sectoral transformation
İşbank expanded its Climate Transition Plan, initially introduced for the power generation sector, to cover all carbon-intensive sectors, and became the first Turkish bank to announce its climate strategy in this regard. The Climate Transition Plan, which includes science-based and feasible transition steps for each sector, outlines the Bank's decarbonization strategy for sectors that account for approximately 65% of the Bank's emissions arising from its loan portfolio.
The Plan, prepared in parallel with scenarios complying with the Paris Agreement, goes beyond a numerical list of targets and provides a strategic framework that clearly defines the carbon emission reduction steps tailored to the needs of each sector and the way these steps will be implemented. The Plan also specifies dedicated actions to be taken in close collaboration with customers to achieve the targets set for carbon-intensive sectors as part of the combat against climate change. It focuses on environment-friendly financing solutions such as expanding the use of clean energy, prioritizing energy efficiency investments, supporting the transition to sustainable fuels, and financing emission reduction technologies.
The Bank thus aims to aligns its financial activities with a low-carbon economy while supporting its customers in their green transformation processes.
A sector-specific and strategic approach for the agriculture sector
İşbank attaches special importance to the agriculture sector, which is among the most vital industries and provides input to many other industrial sectors.
İşbank which conducts agriculture-focused activities with an innovative approach that combines agriculture, technology and sustainability, and offers innovative solutions to farmers through Specialized Agricultural Branches across Türkiye, has included agriculture-specific strategies in its Climate Transition Plan. With an approach that focuses on the dynamics of agricultural banking, the Bank has developed roadmaps specific to wheat, maize and rice crops, which have a significant share in the country's agricultural output. Developing practices to support sustainable agriculture by taking into account the production cycle, environmental impacts and economic potential of each product, İşbank aims to expand approaches that enhance resilience against climate change.
Hakan Aran: "We have developed a realistic, ambitious and feasible roadmap"
Hakan Aran, CEO of İşbank, emphasized in his statement that, with the Climate Transition Plan, a first in the Turkish banking sector as it covers all carbon-intensive sectors, the Bank continues to support its customers by clearly outlining the steps they need to take in their green transformation journey. Aran stated that they had created action plans which took into account the needs of their customer portfolios in each carbon-intensive sector, complied with local and international standards and considered technological developments and the conditions of our country. Aran stated, "Through realistic, ambitious and feasible steps, we have developed an effective climate transformation strategy and concrete roadmaps to support sectoral transition. We will continue to lead the transformation of the real sector by leveraging the power of green finance, stand by our customers in their climate transition processes and work with determination for a sustainable future."
08.05.2025