In recent years, Turkey has undergone a remarkable shift towards sustainability, driven by increasing awareness of environmental and social issues. Akbank, one of the country's leading financial institutions, has played a pivotal role in this transformation. The bank's CEO, Kaan Gür, shares insights into how Turkey has embraced sustainable practices and why Akbank has adapted its ESG policies to meet evolving client needs. With a focus on green investments and innovative financial instruments, Akbank is positioning itself as a leader in sustainable finance, setting ambitious targets for 2030 and beyond.

Turkey's Green Awakening: Akbank's Strategic Adaptation

Over the past few years, Turkey has witnessed a surge in green investments, propelled by growing public awareness of the consequences of unsustainable systems. Investors now prioritize environmental and social impacts alongside financial returns. The Turkish government has also taken significant steps to promote sustainability, attracting substantial foreign capital aligned with the green agenda. In response, Akbank has seized the opportunity to transform the Turkish market into a competitive player in global trade through sustainable development.

Kaan Gür, CEO of Akbank, highlights the bank's commitment to aligning with client needs and investor preferences. Akbank has developed a comprehensive sustainable finance ecosystem that includes capacity-building initiatives, digital sustainability services, and strategic partnerships. This proactive approach has earned Akbank several prestigious awards for sustainable finance. The bank's dedication to achieving net-zero emissions by 2050 further cements its leadership in this field.

Akbank integrates environmental and social risk evaluations into its loan policies, continuously adapting to meet market expectations. Since 2021, the bank has provided financing in green and social categories under its Sustainable Financing Framework. In 2023, this framework was updated to include new thematic areas, reflecting Akbank's commitment to providing TL800 billion ($22.2 billion) in sustainable financing by 2030.

The energy sector stands out as a priority for green projects, serving as a catalyst for decarbonizing carbon-intensive industries. Renewable energy investments have gained momentum, supported by incentive programs from the Ministry of Energy and Natural Resources. Climate risk assessments are essential before proceeding with renewable energy investments, especially in hydroelectric projects. Green hydrogen holds substantial potential for export to the EU market, making it a key investment priority. Energy storage and grid modernization are also critical to expanding the renewable energy sector. Carbon-intensive sectors like cement, iron and steel, and chemicals are prioritized for green transformation under the EU Green Deal. Energy efficiency remains a key area of focus.

To drive the green agenda forward, innovative financing structures such as green bonds and sustainable syndicated loans have emerged as highly effective tools. For a developing country like Turkey, where small to mid-sized enterprises play a significant role, international fund-supported programs provide both financial support and technical consultancy services, accelerating the green transformation across various sectors.

From a journalist's perspective, Akbank's efforts exemplify how financial institutions can lead the way in promoting sustainability. By aligning with client needs and embracing innovative financial instruments, Akbank demonstrates that sustainable practices not only benefit the environment but also enhance economic competitiveness. This approach sets a commendable example for other banks and businesses to follow, highlighting the importance of integrating ESG factors into business strategies.