• Profile
  • TSKB in Brief
  • TSKB's Subsidiaries
  • Products and Services Of TSKB
• Performance
  • Value Creation
  • Awards & Recognitions
  • CEO's Assessment
• Approach
  • TSKB's Sustainable Banking Strategy
  • TSKB's Sustainability Priorities
• Dialogue
  • TSKB and Stakeholder Engagement
  • TSKB's Stakeholders
  • 2010 Stakeholder Dialogue Highlights
• Sustainability and Environmental Issues
  • Sustainable Banking at TSKB
  • Sustainable Banking Performance: the Economic Dimension
  • The Renewable Energy Sector and TSKB
  • TSKB Energy Index
  • TSKB, Climate Change, and the Environment
  • TSKB's Efforts on Behalf of Sustainability and the Environment
  • Who Wouldn't Want to Be Sustainable?
  • ISO 14001 Certification
  • The Structure of the TSKB Environmental Management Team
  • TSKB's Environment Policy
  • TSKB's Environmental Impact
  • Sustainable Banking Performance: the Environmental Dimension
  • Developments in External Environmental Impact
• Corporate Governance
  • Absolute Compliance With Laws and Regulations
  • TSKB's Corporate Governance Structure
  • Compliance With Corporate Governance Principles
  • Risk Management at TSKB
  • Prevention of Money-Laundering and the Financing of Terrorism
  • Relations with Suppliers
• People
  • Human Resources and the Workplace at TSKB
  • The TSKB Performance Management System
  • TSKB Compensation and Reward System
  • TSKB Human Resources Structure
  • Human Rights and Employee Rights at TSKB
  • Competency Development and Training
  • Health and Safety at TSKB
  • Commuting By Sea
  • Internal Communication at TSKB
• The Community
  • Social Responsibility at TSKB
  • "Environment: Our Priority": Past and present
  • The NGOs that TSKB Collaborates with
• Summarized TSKB Goals and Performance
• Appendices
  • About This Report
  • Statement GRI Application Level Check
  • Global Reporting Initiative Cross Index
  • Online Sustainability
  • Imprint
  • Communication and Service Channels

DEVELOPMENTS IN EXTERNAL ENVIRONMENTAL IMPACT

Along with the installation of TSKB’s own EMS in the 2000s, and advanced risk assessment model (ERET) was also designed, which had the effect of adding a whole new dimension to the Bank’s environmental risk assessment.

Environmental Risk Evaluation Tools- ERET
TSKB’s advanced risk assessment model consists of a set of “Environmental Risk Evaluation Tools” (ERET) that was developed under a project with the support of the German Development Bank (KfW) when the Bank’s Environment Management System (EMS) was originally set up. ERET, which provides a method for rating environmental risk under 35 separate headings, was developed and implemented at TSKB on a voluntary basis. Prior to 2007, ERET was applied only to some projects. Since that year, it has been used for all projects that are considered by the TSKB Credit Committee. Implementation of the ERET model is one of the responsibilities of a TSKB project engineer and the results of its implementation are an essential part of a project’s engineering assessment report.

ERET involves a detailed study, taking both existing and future aspects into account, of the potential environmental impact and potential the legal and financial liabilities that might arise be they from an investment project whose financing by TSKB is being considered or from the project owner’s other activities. In situations where a project’s environmental risk is deemed to be above average and/or too high, the Bank works with the customer to formulate a plan whereby the environmental impact may be reduced and monitored.

ERET is firmly grounded in TSKB’s strong banking discipline.
Taking these considerations into account and also as a result of TSKB’s careful approach to marketing, no project whose environmental impact is deemed to be too high goes beyond the initial project evaluation stage. This is a consequence of the Bank’s concentrating its attentions on the “B” and “C” categories of the ERET results.

The ERET model underwent a revision in 2010 in order to make it more precise.
In 2010 the ERET model’s environmental rating methodology underwent a revision under 36 headings in which the relative weights used in making calculations of a number of high-risk issues were increased and greater attention was given to issues entailing risk. This was done to ensure that some headings which might be high-risk have a greater impact on the final results.

Another result of this revision was a somewhat greater detailing of the “risk categories” in the ERET model. Instead of the old “A” (“High”), “B” (“Average”), and “C” “Low”) risk category ratings, the new model uses “A” (“High”), “B+” (“Moderately High”), “B-” (“Average”), and “C” (“Low”).

* ERET Risk Category ratings: “A” means “high”, “B” means “average”, and “C” means “low” environmental risk.
** As a result of a revision of the ERET model carried out in June 2010, “A” means “high”, “B+” means “moderately high”, “B-” means “average”, and “C” means “low” environmental risk.
*** Eleven of the 21 “B” category customer activity assessments are new ratings, of which five are “B+” and six are “B-”. Seven of the thirteen “B” category investment project assessments are new ratings, of which one is “B+” and six are “B-”.