SUSTAINABLE BANKING PERFORMANCE: THE ENVIRONMENTAL DIMENSION

Towards a smaller carbon footprint

All TSKB personnel strive, in keeping with the Bank’s voluntary-compliance environment policy, to minimize the internal and external environmental impact arising as a result of all of the Bank’s day-to-day activities.

Developments in internal environmental impact risk mitigation
The leading indicators of TSKB’ internal environmental impact are presented in the chart on page 47. Although TSKB began quantifying and recording internal environmental impact data in 2006, 2008 will be taken as the baseline year for future improvements due to the possible effects that extensive renovation work undertaken at headquarters premises in 2006 and 2007 might have on earlier figures.

TSKB-Internal Environmental Indicators (2006-2010)

INDICATOR, *	2006	2007	2008	2009	2010
Electricity consumption
Electricity consumption (kWh)	1,282,371	1,338,675	1,431,067	1,300,219	1,256,058
Electricity consumption (kWh/m²)	71	79	84	76	74
Electricity consumption (kWh/person)	4,452.68	4,492.20	4,631.28	4,140.82	3,876.72
Natural gas consumption
Natural gas consumption (m³)	125,701	94,549	95,872	86,615	78,857
Natural gas consumption (m³/ area in m²)	7	6	6	5	5
Natural gas consumption (m³/person)	436.46	317.28	310.27	275.84	243.39
Water consumption
Water consumption (m³)	11,983	10,993	8,416	7,938	7,903
Water consumption (m³/person)	0.66	0.65	0.49	0.47	0.46
Water consumption (m³/person)	42	37	27	25	24
Paper consumption
Paper consumption (kgs)	12,160	11,300	9,800	8,450	9,137
Paper consumption (kgs/person)	42	38	32	27	28
Waste paper
Waste paper (kgs)	5,600	7,000	4,000	4,070	5,125
Waste paper (kgs / person)	19	23	13	13	16
CO₂ emissions***
CO₂ emissions (tonnes)	1,298.04	1,253	1,249	671	401
CO₂ emissions (tonnes/ USD net profit)	0.000017	0.00001	0.000016	0.000006	0.000003
CO₂ emissions (tonnes/person)	4.51	4.20	4.04	2.14	1.24
TSKB carbon footprint analysis
Electricity	63.62%	68.82%	73.78%	46.23%	0.00%
Natural gas	18.17%	14.16%	14.40%	24.23%	36.87%
Paper	2.50%	2.40%	2.09%	3.36%	6.08%
Total transportation	15.71%	14.62%	9.72%	26.18%	57.05%
Buildings (m²)	18,119	17,008	17,008	17,008	17,008
Employees ****	288	298	309	314	324
Net Profit (USD)	75,462,000	126,702,000	78,484,000	115,401,000	136,535,000

Notes
* In order to economize on electrical power use, lighting systems at TSKB are equipped with time- and movement-sensitive features to ensure that illumination is provided only when needed.
** Maintenance and cleaning work is carried out as required on all systems to ensure that they operate at their stated efficiency ratings.
*** As of 1 June 2009 the Bank achieved a 100% “green energy” rating in electrical power consumption. For this reason, there are no carbon emissions attributable to such consumption after that date.
**** This indicates the average number of people employed day-to-day at headquarters premises during the year.

Calculation references
TSKB made use of the following generally accepted methods to calculate the environmental indicators presented above:
• Greenhouse Gas Protocol Initiative (www.ghgprotocol.org) methods to calculate CO₂ emissions arising from electrical power and natural gas use.
• Environmental Defense Fund (www.edf.org) methods to calculate CO₂ emissions arising from paper use.

According to 2010 figures, TSKB’s carbon footprint is equivalent to 401 tons of CO₂, of which amount 57% arises from the Bank’s transportation activities.

ACCORDING TO 2010 FIGURES, TSKB’S CARBON FOOTPRINT IS EQUIVALENT TO 401 TONS OF CO₂, OF WHICH AMOUNT, 57% ARISES FROM THE BANK’S TRANSPORTATION ACTIVITIES.

As of June 2009, the Bank achieved a 100% “green energy” rating in electrical power consumption and there are no carbon emissions attributable to such consumption after that date.

TSKB is the first and only bank in Turkey to eliminate its carbon footprint and become carbon-neutral.

An organization’s carbon footprint represents the total of all greenhouse gas emissions arising from the fulfillment of its transportation, heating, lighting, and similar functions. Because CO₂ emissions resulting from the burning of fossil fuels are widely regarded as a factor contributing to climate change, “carbon footprint” is also considered to be a measure of the adverse impact that a person’s or an organization’s activities have on the environment stated in terms of the amount of emitted CO₂ or its equivalent of other greenhouse gases.

TSKB is the first and only bank in Turkey to eliminate its carbon footprint and become carbon-neutral.

How did we achieve this?
Step 1: Quantify our carbon footprint	We began measuring our carbon footprint in 2006 while also developing and implementing strategies to reduce it.
Step 2: Become carbon-neutral	In 2008 TSKB decided to make itself carbon-neutral. On the one hand it had its carbon emissions counted and analyzed by a third party and set 2009-2010 emission reduction targets for itself.
Step 3: Erase the carbon footprint	In 2008 TSKB eliminated its carbon footprint (determined to be equivalent to 1,249 tons of CO₂) with a Gold Standard carbon credit, thereby achieving carbon neutrality.
Step 4: Implement carbon emission reduction targets and change over to green energy	Through the measures that were taken and by changing over to 100% green energy in June 2009, TSKB began implementing its carbon footprint reduction strategy.
Step 5: Continuously review, improve, and set new targets	The “Measure, Control, Target, Reduce” cycle.

THE TARGETS THAT TSKB SET FOR ITS NATURAL RESOURCE UTILIZATION UNDER ITS CARBON FOOTPRINT REDUCTION STRATEGY IN 2009-2010 TOGETHER WITH THE BANK’S PERFORMANCE AND THE MEASURES TAKEN TO ACHIEVE THOSE TARGETS ARE SUMMARIZED BELOW

	2009-2010 target	2009 and 2010 performance & general evaluation
Electricity	7% savings in electrical power use, change over to renewable energy	Electricity consumption was reduced by 9.1% in the year to end-2009. In 2010, TSKB reduced its total electrical power consumption by 12.2% compared to 2008, thus surpassing its 7% target. The Bank achieved this rate of performance through energy efficiency projects that it carried out in this area.
Natural gas	Make as many improvements as possible; no specific numerical targets set	Total natural gas consumption at TSKB was reduced by 9.7% in the year to end-2009. In the two years to end 2010, TSKB reduced its total electrical power consumption by a substantial 17.8%.
Water	Make as many improvements as possible; no specific numerical targets set	Total water consumption at TSKB was reduced by 5.7% in the year to end-2009. In the two years to end-2010, TSKB reduced its total water consumption by a substantial 6.1%.
Paper	Make as many improvements as possible; no specific numerical targets set	Total paper consumption at TSKB was reduced by 13.8% in the year to end-2009. In the two years to end-2010, TSKB reduced its total paper consumption by 6.1%. TSKB does not regard its current performance in reducing its use of paper or in collecting and recycling waste paper as adequate. The Bank intends to reduce its total paper consumption by much more and will be seeking to increase waste paper recovery and recycling through more intensive awareness campaigns. It plans to conduct more systematic projects to achieve this in 2011.

In 2010 TSKB joined the Carbon Disclosure Project.

The Carbon Disclosure Project (CDP) was launched in Turkey at the beginning of 2010 by the Sabanci University Corporate Governance Forum and with the support of Akbank. As a first step in this project, letters were sent out to every company in the İstanbul Stock Exchange’s ISE-50 list in which each was asked to respond with public disclosures of their greenhouse gas emissions and their policies concerning climate change.

During CDP’s first year in Turkey, eleven of the companies in the ISE-50 list responded to the invitations. Having been measuring and publicly disclosing its own carbon footprint since 2006, TSKB expressed its satisfaction at the launch of the Carbon Disclosure Project in Turkey and announced its voluntary participation in it.

TSKB Energy Efficiency Portal
TSKB Energy Efficiency Portal TSKB's comprehensive portal dealing with the subject of energy efficiency went into operation in June 2011. This portal is located at www.tskbenerjiverimliligi.com

The İstanbul Stock Exchange Sustainability Index (ISESI)
The İstanbul Stock Exchange's Sustainability Index (ISESI), which will include only companies that are acknowledged to adhere to best practices on the subject of sustainability, will commence publication at the end of 2011. TSKB is a member of the Advisory Board of the ISESI project. ISESI is not intended to be an investment vehicle for investors.

In this section:

A sixty-one-year story
For Turkey’s sustainable development
TSKB’s integrated service strategy
TSKB’s principal business lines

In this section:

Creating value
Who did we share what with and how?
National and international recognitions
Speaking on behalf of management: TSKB’s CEO assesses the Bank’s performance and presents its goals for the future

In this section:

The key to sustainable development: Sustainable banking
TSKB’s basic approach to sustainability: Continuously identify, implement, and improve upon correct strategies.

In this section:

The importance and value of stakeholders
Open, honest, and sincere communication
Global and national initiatives
What do our stakeholders say?

In this section:

Banking products and services that meet Turkey’s needs
One goal: A low-carbon economy
Managing environmental impact
Towards a smaller carbon footprint

In this section:

Corporate governance and full compliance with law
The highest corporate governance rating in the sector
Risks and policies
The importance of environmental risks
Ethical banking
Combating financial crime
Suppliers: TSKB’s indirect environmental impact

In this section:

Our most precious asset
A compensation policy that is competitive and market-sensitive.
Diversity and equal opportunity
Systematic approach to training
Zero-level workplace accidents
Commuting by sea

In this section:

Our approach to social responsibility
A 60-year symphony
Turning Winds
cevreciyiz.TV
Turkey’s richest-content environmental portal
The NGOs that we collaborate with

In this section:

About this report
Global Reporting Initiative cross index
Online sustainability
Imprint
Communication and service channels

Shortcuts