Turkey's sustainable finance targets and the sector's new strategies after COP29 were discussed at the X. Sustainable Finance Forum
The Business World and Sustainable Development Association (SKD Turkey) held the 2013th Sustainable Finance Forum, which it has organized every year since 10, with the aim of raising awareness on sustainable finance and sharing good practices, on December 3 at Borsa Istanbul.
The forum, organized in cooperation with the Association of Signatories of the Global Compact (UN Global Compact Turkey) and with the main sponsorships of Akbank, Garanti BBVA, Turkey Development and Investment Bank, Şekerbank and Turkey Industrial Development Bank and İş Bank, was held with the participation of the President of the Capital Markets Board, as well as representatives of the financial sector and the real sector.
The Forum, organized under the theme of “Sustainable Finance in the Age of Triple Transformation: Digitalization, Decarbonization and Social Impact”, addressed the role of technology in investment processes and the use of sustainable finance instruments, the integration of the climate crisis into the financial solution process through mechanisms such as carbon markets and green bonds, and the expansion of social impact investments.
The 10th Sustainable Finance Forum, organized by the Business World and Sustainable Development Association (SKD Turkey) in cooperation with the Global Compact Signatories Association (UN Global Compact Turkey), brought together many organizations from the international arena and Turkey in the financial world. The opening speeches of the 10th Sustainable Finance Forum were made by UN Global Compact Turkey Board Chairman Ahmet Dördüncü, SKD Turkey Board Chairman Ediz Günsel, and Capital Markets Board Chairman İbrahim Ömer Gönül.
Capital Markets Board Chairman İbrahim Ömer Gönül In his opening speech, he said, “With sustainability, we see that no matter what you do, if it is not based on digitalization, sustainability, and social impact, a part of it remains incomplete. Therefore, we have now entered the triple transformation era and we continue to progress very quickly. It is important that sustainability efforts are definitely financed. As the CMB, we are conducting studies that will activate domestic financing opportunities that can be used in climate financing. Our country's first and only Green and Sustainable Debt Instruments and Lease Certificate Guide has been prepared in this field. Along with the guide, Green Debt Instruments, Sustainable Debt Instruments, Green Lease Certificates and Sustainable Lease Certificates are already in use. Our studies continue to ensure that these issuances are carried out in compliance with the best practices and standards in international financial markets.”
SKD Türkiye Board Chairman Ediz Günsel In his speech, Günsel drew attention to the transition to a new economic structure with the triple transformation and said: “Fighting the climate crisis is possible with the cooperation of individuals, institutions and countries. In this process, the duty that falls on all of us is to work together and produce sustainable solutions. These solutions should be realized in three critical transformation areas consisting of digitalization, decarbonization and social impact. I believe that this period in which we are transitioning to a new economic structure offers significant opportunities as well as risks to our country and business world.” Drawing attention to the importance of access to finance for Turkey’s net zero targets, Günsel added: “In order for sustainable solutions to be realized, in addition to public policies, the private sector and financial institutions need to support the process with their innovative solutions. I believe that our forum will be a beginning for new collaborations.”
In his speech at the forum UN Global Compact Board Chairman Ahmet Dördüncü, said: “The triple transformation, which addresses green transformation, digital transformation and social transformation as a whole, supports economic growth while also contributing to societies reaching a more equitable and sustainable future. Financing is of vital importance in providing the necessary resources and developing new economic models for the implementation of the triple transformation. Green bonds, investments in sustainable energy projects and financing the energy transformation will play a major role in Turkey reaching its net zero target. The success of this transformation depends on the coordinated work of the public, private sector and civil society organizations with a common vision. Here, each stakeholder has important responsibilities.”
The X. Sustainable Finance Forum also addressed the issue of access to climate finance for Turkey, which announced its Long-Term Climate Change Strategy for the 29 net zero target at COP2053. The new period awaiting Turkey was evaluated in terms of the financing required for mitigation and adaptation efforts in priority sectors such as energy, industry, buildings, transportation, agriculture, waste and land use. The Forum also discussed topics such as digitalization, decarbonization and the future of social justice, sustainable finance strategies and impact investments within the scope of the triple transformation, which are seen as the fundamental elements of sustainable development. Representatives from the finance sector and the real sector attending the Forum drew attention to the needs, expectations in sustainability financing and cooperation opportunities for the development of concrete solutions.
Digitalization and Decarbonization are Transforming Sustainable Finance Strategies and Leading the Future
The panel titled “Triple Transformation: Digitalization, Decarbonization and the Future of Social Justice” held within the scope of the forum was held with the participation of high-level representatives from EBRD, Garanti BBVA, İş Bankası and TSKB. The panel discussed the effects of practices in the financial sector on digitalization, decarbonization and social justice. Banks’ financing policies for energy-intensive sectors were evaluated with digitalization and technologies aimed at reducing carbon emissions. The contribution of digital solutions to green bonds and sustainable financing products was discussed. The role of the digitalization of global carbon markets in reducing social inequalities in developing countries was discussed. In addition, the impact of these markets in accelerating the financing of green projects was examined.
Garanti BBVA Deputy General Manager Cemal Onaran, touching on the role of digitalization in his speech, said, “Digitalization is a very efficient support mechanism for sustainable transformation. That’s why I think that addressing the triple transformation together is not a choice but a necessity. We also stand by our customers on this transformation path and support them.”
İşbank Deputy General Manager and Sustainability Leader İzlem Erdem, emphasized that just transition, digitalization and decarbonization elements should be addressed together in the panel, and said, “The just transition process requires social and economic transformation along with environmental goals. As İş Bankası, we are working to build a sustainable future with the support of all our stakeholders and the triple transformation focus.”
TSKB Deputy General Manager and Sustainability Leader Meral Murathan In his speech, he said, “At the Sustainable Finance Forum, we had the opportunity to evaluate the key concepts of qualified development, digitalization, decarbonization and social justice, within the framework of the triple transformation, with valuable speakers and panelists. As TSKB, we will continue to grow the 75-year impact we have created in line with our national goals by also benefiting from the transformative power of the finance sector in our country's triple transformation process.”
Impact Investing is Launching a New Era by Combining Social and Environmental Benefit with Financial Return
In the second panel titled “Impact Investments: Sustainable Finance Strategies Shaping the Future”, high-level representatives from Akbank, IFC, Şekerbank, TKYB and UNEP FI discussed the biggest trends and innovations in the world of sustainable finance, shedding light on the transformation in this area. The panel also touched on the structural reforms or policies required to achieve financial returns as well as social and environmental benefits through impact investments in developing countries. It also addressed how the financial sector integrates innovative approaches such as creative economy and results-oriented financing in line with the UN Sustainable Development Goals (SDGs).
Akbank Serkan Duruduygu, Head of Investment Banking and Sustainable Finance Department, “We see that guidance on ESG is one of the most important needs of our customers. Our expert team at Akbank Investment Banking supports our customers in accessing the most appropriate financial product on many issues from green transformation to reaching net zero targets and increasing their sustainability performance. As Akbank, we always say, 'There is no sector that cannot be transformed, there are sectors where sustainable impact has not yet been integrated.' We currently offer 23 sustainable products to support our customers in their transformation. We will continue to work for a green and inclusive future.”
Stating that they act jointly with international organizations in impact-oriented projects, Deputy General Manager, Sustainability and Impact Leader, Seçil Yıldız, Development and Investment Bank of Türkiye“We carry out all our financing activities and projects in line with the Global Reporting Initiative (GRI) Standards, Integrated Reporting Framework and tools compatible with the UN's Sustainable Development Goals (SDGs), as well as the Impact Management Operating Principles (OPIM). We are the first and only financial institution in Turkey to sign the Impact Principles. We integrate our impact-oriented approaches into the entire life cycle of projects and try to create a positive impact on the environment and society with this approach. In addition, as a member of the Global Impact Investing Network advisory board, we aim to make our country a global center in the field of Impact,” he said.
şekerbank Fatma Nur Çetinel, Deputy General Manager of Treasury and Financial Institutions, “Impact investments and sustainable finance play a critical role in the transformation of the global financial ecosystem. As Turkey’s private capital deposit bank that allocates the highest share to SME loans in its loan portfolio, we closely follow developments in this area and actively work on solutions that will contribute to this transformation. Supporting SMEs and agriculture, and carrying out this triple transformation process by considering environmental and social impacts constitute one of the main building blocks of our business model,” he said.
Dealing with uncertainty in sustainability and the rising role of artificial intelligence in the financial world inspired the participants
The Special Session organized within the scope of the Forum was sponsored by Yapı Kredi Corporate Communications Director, Author, KİD Vice President Arda Öztaşkın, shared his assessments on the increasing importance and role of artificial intelligence with his presentation titled “AI and sustainability in the future of finance”. Öztaşkın said the following in his speech: “A future where sustainability and economic success progress together with the support of artificial intelligence, and where natural resources are used efficiently with data-driven decisions is possible. At this point, the cooperation of the private sector, NGOs and public institutions is very important. Every step taken by the Business World and Sustainable Development Association in this transformation journey is very valuable for our future.”
Also in the forum Rector of Istanbul Topkapi University, Economist and Author Prof. Dr. Emre Alkin He gave a presentation titled “Sustainability in a Universe of Uncertainty.”
