Yapı Kredi aims at performing its operations with environmental awareness, minimizing impact on the environment and constantly developing its performance in this area. As regards the development of environmental practices, Yapı Kredi takes into consideration the pioneering approach and policies of its principal shareholders Koç Holding and UniCredit and carries out its activities accordingly.

Yapı Kredi is hence a member of Environmental Board of Koç Group, the highest authority to take decisions on environmental management made up of managers of Koç Group companies responsible for environmental management. Environmental Board of Koç carries out activities to determine, implement and generalize policies and strategies across the entire group. Strategic goals specified within this structure are turned into performance goals and are generalized throughout the entire Yapı Kredi organization, starting from senior management. Results and progress processes of the specified goals are regularly followed up. Special attention is paid to compliance with related legislation, with Koç Community Audit Group launching periodical audits.

To this end, Yapı Kredi,

• Follows all legal regulations and obligations on the environment and undertakes its responsibilities to fully comply with such regulations and obligations,
• Works on the protection and efficient use of natural resources of our country and the world as well as making efforts to control and mitigate the environmental impact caused by its operations,
• Monitors the environmental impact caused by its products and services and works to develop eco-friendly products in order to reduce such impact,
• Engages in activities to raise awareness about the environment and sustainability among large segments of the society including its employees, customers, branches, suppliers, contractors and other operational stakeholders.

The responsibility of Yapı Kredi’s studies in the field of environment is allocated to the Sustainability Committee. Sustainability Committee Chairman duty is carried out with co – chair system by a Board Member and Assistant General Manager, Corporate Communications.

Implementations in relation to environmental policies of Yapı Kredi are carried out within the scope of the following activities:

• A large majority of Yapı Kredi’s direct environmental impact is caused by plastic, paper, glass and metal waste, which is characteristic for the banking sector. A considerable part of this waste is produced as a result of office processes. Awareness raising activities for employees are conducted to serve for behavioral change and as a result of this to help reduce the amount of waste generation.
• In addition to employees, customers are also advised on especially paper waste through various communication channels. Customers are encouraged to use e-extract. Thanks to online and telephone banking practices, paper waste produced in classical banking transactions is reduced.
• With the awareness of environmental responsibility incumbent upon the business world, practices were developed to generalize this responsibility across the value chain. To this end, environmental criteria were integrated in contract processes with suppliers and Responsible Procurement Principles was created. These principles has been made effective as of June 2016.
• Integrated Waste Management System implementations were initiated in 2014 and has been completed in 2015. Hazardous and non – hazardous waste storage areas were created in headquarter buildings. Waste generated as result of daily activities are classified and stored seperately according to hazardousness and waste code, thus preventing mixing up of hazardous and non – hazardous waste.
• Waste sorting at source is applied as part of the recycling/recovery program. Recyclable paper, plastic, metal and glass waste are submitted for recycling to the local municipality of each service point, or to licensed companies. Hazardous waste produced as a result of activities are delivered to licensed waste disposal plants and hence incorporated into disposal/recovery processes.
• Employees are the largest consumers of water, therefore informing studies regarding conscious use of water are conducted for employees. They are informed on related issues through various communication channels throughout the year. Activities are carried out to diminish operational impact in energy and emission management. Additionally, long-term values for customers and stakeholders are created by financing renewable energy projects.
• ISO 14064 Greenhouse Gas Emission certification studies have been carried out since 2011. Independent third party verification process of greenhouse gas emissions calculated for 2015 is completed. As a result of studies conducted within the scope of ISO 14064 standard, which is the guiding standard on calculation, development, management and reporting of greenhouse gas inventories on company level, 267.2 tons of CO2e emission reduction was obtained in 2015 through the energy saving project and its implementations.
• Various practices are carried out to minimize carbon emissions by reducing fuel consumption in a way that does not compromise the safety and comfort of employees. In 2015, 80 of the routes used in employee transportation were optimized, reducing our overall Scope 3 CO2e emissions by 120.8 tons. In addition, carbon emissions were reduced even further through the replacement of aged vehicles with new vehicles featuring next generation engines. After the replacement, the average age of 17-27 passenger vehicles in our fleet was reduced from nine to four, while the average age for 45-passenger vehicles was reduced to ten from the previous fifteen years old.
• Greenhouse gas emissions caused by business trips are reduced thanks to “Telepresence Rooms” introduced in the head office buildings which help to organize an average of 160 hours of teleconferences per month.
• In 2015, as part of Green IT initiatives, all computers in branches were replaced with models that support environmental strategies. In addition, by centrally shutting down all computers in branches from 00:00 to 08:00, an annual energy saving of 30% was achieved. This measure also reduced carbon emissions significantly.
• Energy saving efforts also targeted the data center, where devices at the end of their life cycles were physically removed, and new virtualization technologies were implemented, resulting in approximately 936 GJ of energy saved, preventing 122.72 tons of CO2 emissions in 2015.
• As part of funds created by the securitization agreement signed in 2011 between the International Finance Corporation (IFC) and German Investment and Development Corporation (DEG), Yapı Kredi has established, and continues to operate a Social and Environmental Risk Management System (SEMS) within the organization. In view of the specified blacklist, projects and companies that pose social and environmental risks are not provided with financing. Companies that apply for funds via SEMS are categorized according to risk levels. Following evaluation, projects that are found eligible are followed up and reported to the bank management and to the related credit agency.
• Furthermore, Yapı Kredi has launched activities to establish an environmental and social impact evaluation system to improve its current environmental policy and approach. In order to support these studies, Yapı Kredi reports to Carbon Disclosure Project and aims to join the United Nations Environment Program Finance Initiative (UNEPFI).
• Environmental policy and practices of Yapı Kredi are found in communication channels (intranet and web site) accessible to all executives and employees. Awareness-raising activities are carried out on environmental issues. In 2015 100 person*hours of training to 100 employees in areas of environment, pollution and outcomes, air pollution and control, climate change, noise pollution and control, water pollution and control, soil pollution and control, waste management, and medical waste management.
• Yapı Kredi has not violated any environmental rules/legal regulations in 2015 and has not been involved in any litigation in this area. The company has not received any fines on environmental issues either.
• Yapı Kredi engages in communication and partnership with various stakeholders including sustainability initiatives, non-governmental organizations, universities and public institutions. To serve this end since 2014, Yapı Kredi has been supporting “Türkiye’nin Canı” (Turkey’s Soul) project run by WWF in an effort to protect biodiversity.

Environmental Goals

Goals achieved in 2015 as part of activities in the field of environment are provided below together with goals set to be fulfilled by the end of 2016.

Goals set for the end of 2015

• Following up of water consumption – Obtainment and automation of suitable water meters for a detailed follow-up of water consumption in head office buildings. – Due to unfovourable results of feasibility studies, this activitiy was not implemented. Another saving action, garden irrigation automation system, was comissioned instead of the planned activity.
• Reduction of energy consumption – Quantitative reduction of electricity consumption in head office buildings. (lower limit goal: 1%, upper limit goal: 2%) – This goal was achieved. Electricity consumption was reduced by 1.78%.
• Reduction of energy consumption – Quantitative reduction of natural gas consumption in head office buildings. (lower limit goal: 1%, upper limit goal: 2%) – This goal could not be achieved due to unfovourable weather conditions compared to the previous year.
• Completion of transition to eco-friendly computers at branch offices by the third quarter of 2015. – This goal was achieved.
• Reduction of carbon emissions by replacing old generation vehicles with new generation vehicles and engines – 69 vehicles of 27 seats will be maximum 4 years old and 42 vehicles of 45 seats will be maximum 10 years old. – This goal was achieved.

Goals set for the end of 2016

• Obtainment of ISO 14001 certificate – Establishment of infrastructure for ISO 14001 Environmental Management System in the head office buildings to help complete the certification process in 2016.
• Reduction of energy consumption in headquarter buildings – Commissioning of more energy efficient lightings and elevators
• Environmental Training – Providing environmental training for employees located in headquarter buildings (lower limit goal: Training for 15% of employees located in headquarter buildings , goal: Training for 25% of employees located in headquarter buildings, upper limit goal: Training for 30% of employees located in headquarter buildings)

Details of all activities in the field of the environment can be found in Yapı Kredi Sustainability Report. Yapı Kredi Sustainability Report can be accessed here.