THE ENVIRONMENTAL JOURNEY OF TSKB

TSKB is determined to be the leading and continuous supporter of all environmental initiatives such as climate change and to fulfill its responsibilities on the efficient, effective and fair consumption of natural resources. TSKB is a corporate citizen who believes in implementing a worldwide, efficient and coordinated framework to combat against environmental problems especially the negative results of greenhouse emissions as soon as possible.

TSKB’s journey of environment is developed in two phases:
  • Between 1980 and 2005
  • After 2005

The 1980-2005 period is one when TSKB seeded a new approach in the sector with its exemplary initiatives regarding environment.
During this period TSKB considered its own initiatives about environment in the credit evaluation processes and monitored the realization of environmental obligations in the projects.

These applications indicate that TSKB internalized consideration of environmental factors in its banking and lending practices long before the By-law On Environmental Impact Assessment took effect in 1993.

TSKB has also been the first bank to provide finance to environmental projects for Turkish industry to finance the investments with the resources assured from the international markets in 1990’s.


The connection of banking and environment

One of the strongest trends in the banking sector is being shaped around the requirement of sustainable environment for sustainable economy which result in banking and environment meeting at many points.

In banking environmental and thus social issues are considered in two dimensions:
  • Forming systematic structures to consider environmental and social issues and risks in the process of lending decision; financing the projects with negative impacts after the necessary measures are taken with related action plans.
  • As banks, creating services and products with positive contribution to environmental and social issues; financing environment, renewable energy and energy efficiency investments; creating environment sensitive funds, real estate and consumer loans with environment theme.


The most important business line where banking-environment connection appears is corporate lending. Banks acting as “environment agents” consider environmental issues and finance the projects with the required environmental permits and action plans supporting the formation of sustainable development model.

Environmental risk for banking sector arises when the necessary environmental measures are not taken in the financed project. The financial risk of the investor is either directly or indirectly reflected to the lending bank. Beyond financial risk, “reputation risk” of the Bank as a result of financing an insensitive investment is much more critical. When a bank is subject to reputation risk it is very hard to define and calculate.

Source: TBB Banking Magazine, September 2009, Issue: 70 / Hülya Kurt – Environment and Sustainable Banking for Financial Institutions

The issue of environment has been diligently and carefully pursued by TSKB for long years.

The following quoted passages from the credit evaluation reports are concrete examples...

From an evaluation report of a fiberglass manufacturer in 1988
“Environment pollution: The waste water of the plant is 175 m³/ day. 50 m³’ is process water and the rest is domestic waste water. After the process water is precipitated with aluminum sulfate, lime and polyelectrolyte it is sent to common biological treatment plant with the domestic waste water. The treatment plant is set up and opened to service in June 1986.

The capacity of biological treatment plant is 1,600 m³/day which is equal to domestic waste of 8,000 people.”

From an evaluation report of a pharmaceutical factory in 1989
“Environment pollution: To treat the waste water of medicine (9,3m³/day) and raw material (10.57 m³/day) production units; total of 19.77 m³/day, a new biological treatment plant is built and is ready to put in service.

The biological oxygen demand (BOD) parameters of waste water for producing raw material and medicine are 20,000 mg/l and 3,000 mg/l. Chemical oxygen demand (COD) is about 1.5 times of this amount. After the waste water is treated in the new treatment plant the BOD and COD will be reduced to 250 mg/l and 800 mg/l before released to channels of ISKI (Istanbul Municipality Waterworks).”

From an evaluation report of a cement factory in 1991
“Environment pollution: Furnace chimneys are filtered but the tile inventory in the open storage area creates dust pollution. A closed storage area is suggested. Besides, the inner filters integrated in the transportation system will reduce the pollution. The electro filter attached to the concrete mill is said to have a 99.99% dust reduction capacity and will prevent dust formation during the grinding process.”