Policy of Environmental and Social Risk Management in Lending Processes

The Bank’s approach to managing environmental and social impacts in its lending processes is shaped by the principles of effectively managing potential negative impacts, assessing risks and opportunities, and creating positive environmental and social impacts for the communities and environment in which it operates.

In all credit assessments, it is essential to follow these principles, avoid financing activities that may cause unacceptable impacts on people or the environment, and evaluate credit proposals accordingly. At Burgan Bank, significant environmental, social, and governance (ESG) considerations are integrated into investment decision-making processes.

In this context:

National legislation and relevant international standards regarding environmental and social issues are closely monitored, and good practice procedures and controls are established to ensure compliance in financed projects.
Activities prohibited under international agreements to which Türkiye is a party, as well as projects included in the Bank’s “Exclusion List,” are not financed under any circumstances.
A sustainable finance approach is adopted, aiming to support the transition to a low-carbon economy as a key stakeholder.
To support sustainable development, priority is given to financing projects related to climate change mitigation, energy efficiency, renewable energy, recycling and waste reduction, entrepreneurship, and gender equality.
Climate-related risks within the loan portfolio are monitored, and national and international developments regarding climate-related financial risks are followed.

Exclusion List of Non-Financeable Activities

Burgan Bank A.Ş. commits not to finance the following projects/activities, regardless of transaction size and without further internal assessment:

Any product or activity that is illegal under Türkiye laws or regulations, or international conventions and agreements
Projects involving forced labor or harmful/exploitative child labor, or activities that restrict human rights and/or violate fundamental rights
Production or trade of PCB (Polychlorinated Biphenyl)-containing products
Activities conducted in Ramsar Sites (wetlands)
Activities that pose a threat to UNESCO World Heritage Sites
Production or trade of asbestos without restriction
Production or trade of firearms and ammunition, biological, nuclear, and chemical weapons, cluster munitions, and landmines including anti-personnel mines
Arms trade activities in countries under arms embargoes imposed by the United Nations, European Union, and/or the United States, and companies selling arms to such countries or groups
Forestry activities in tropical rainforests
Driftnet fishing in marine environments using nets longer than 2.5 km and involving explosives or toxic substances
Production or trade of pesticides, herbicides, and ozone-depleting substances prohibited under national and international agreements
Production or trade of radioactive materials
Gambling, casino, and equivalent business activities

The above Exclusion List applies to all internal financing activities of the Bank as well as all corporate and commercial clients. Definitions and scope of activities are determined based on national legislation and international conventions to which Türkiye is a party, unless otherwise stated.