A large portion of the external environmental impacts of TSKB appear on the client side. The aim of the Bank is to describe the environmental impacts regarding the projects it finances and support the clients to minimize the effects by managing them.

The Bank has developed ERET (Environmental Risk Evaluation Tool) to calculate the environmental risks of the lending activities.

External environmental impacts

After EMS was established in 2000’s, an advanced environmental risk evaluation model ERET was designed and a new era started regarding environmental risk evaluation.

ERET is the basic instrument of TSKB to measure external environmental risks.

Environmental Risk Evaluation Tool (ERET)
ERET, developed within the context of the Project during the establishment of EMS with the support of Kreditanstalt für Wiederaufbau (KfW), is an environmental risk evaluation model which questions 35 subjects and rates the answers. It was developed as a result of the voluntary initiatives of TSKB. Although ERET Model was used only in specific projects in the previous years, it is implemented in all projects handled by TSKB Credit Committee since 2007.

ERET finds answers to most of the questions included in Equator Principles which is prepared by IFC and accepted worldwide by the Banks operating in developed economies.

Preparation of the ERET Model is under the responsibility of TSKB Project engineer and a part of project engineering and evaluation report.

The model is based on studying the environmental impacts of investment project subject to credit evaluation and of the other activities of the project owner with both current and future perspective.

In case of a high environmental risk factor, a plan is prepared in cooperation with the client on how to reduce the impacts and to trace them.

ERET, as an important component of the systematic approach in the evaluation activities, prepares a valuable base for the sustainable finance activities of TSKB.

In the light of the ERET findings, TSKB realizes EMS environmental risk categorization and satisfies the report and information need of the international credit institutions.

An environmental risk analysis in terms of finance includes defining the dimension of the environmental risk and studying the acceptability limits. It also covers reducing or offsetting potential risks and the related action plans to reduce the environmental impacts.

TSKB 2005-2009/I Semi-annual ERET Results
  2005 2006 2007 2008 2009/H1
Number of projects in hand 20 33 67 87 22
Risk category*          
A - - - - -
B 2 11 18 50 14
C 18 22 49 37 8
A - - - - -
B 1 15 6 12 8
C 19 18 61 75 14

*The project and company risks calculated are categorized as A=high B=medium and C=low within the context of ERET environmental risk categorization of TSKB.

Behind ERET Model lies a strong banking discipline based on selectivity
With its careful approach in the marketing phase TSKB does not include the projects in the evaluation process in case it predicts high environmental risks. That’s why ERET results are accumulated at B and C categories.

Information technology Implementations: A valuable tool to protect environment
With electronic business processes TSKB automated more than 30 critical banking processes. Among these, credit process (application, evaluation, approval, contract and lending) takes place as a whole.

The 73% of the documentation used in the service cycle of TSKB is produced, shared and saved in electronic environment.

All the EMS documents are reachable through TSKB Intranet and are managed under a new and efficient system.

The electronic document management system reached through the corporate Intranet is also integrated to the main banking program of TSKB. The connection of the two systems both creates efficiency in knowledge management and operations and also reduces paper consumption regardless of the increasing business volume, in terms of supporting the Bank’s approach on protecting the environment.