SUSTAINABILITY REPORT 2015 SUSTAINABILITY REPORT 2015 Garanti Sustainability 2015 Report 3 CONTENTS 7 8-9 10-11 12-15 16-19 20-31 32-35 38-45 About this Vision, Mission Key Sustainability Sustainability Message from Garanti in Brief Milestones Focusing on Report and Values Highlights Strategy and the CEO Stakeholders -Key Facts -Garanti’s Sustainability- Policy - Key Stakeholder -Our Vision -Garanti Bank in Numbers Related Indicators -Sustainability Strategy Groups and Engagement -Our Mission -Group Structure -Sustainability Policy Platforms -Our Strategy -Corporate Profile -Sustainability Principles -National and International -Our Core Values -Garanti’s Products and Memberships Services -Approach to Materiality -Garanti’s Integrated Subsidiaries 46-65 66-97 98-113 114-130 131-135 136-137 138-163 165-208 Focusing on Focusing on Focusing on Focusing on Focusing on Assurance Appendix GRI G4 Corporate Customers Managing Human Resources Communities Report Content Index Sustainability through Environmental -Appendıx 1: Key -Human Resources and the -Garanti Bank’s Corporate Stakeholder Groups And Governance Sustainable Impact of Business Environment Social Responsibility Engagement Platforms -Equality of Opportunity and Policy -Board of Directors and Finance Operations -Appendıx 2: Environmental Diversity -Education And Social Impact Senior Management -Importance of Customer -Environmental Policy -Occupational Health and -Supporting the Assessment Model (Esiam) -Committees Experience and Satisfaction -Garanti Bank’s Environmental Safety (OHS) Participation of Disabled -Appendix 3: Sustainability -Risk Management, -Segment-Specific Management System -Child Care Individuals in Social and Collaboration With Internal Audit and Control Programs that Contribute to -Supply Chain Management -Security Measures Economic Life International Financial Functions Sustainability -Climate Change Management -Good Work Life Relationship -Support for Culture and Organizations -Disciplinary Committee -Financial Health and Inclusion at Garanti Bank (“IYI”) Program Cultural Heritage -Appendix 4: -Policies and Principles -Renewable Energy -Climate Change Mitigation -Health and Nutrition -Community Investment Whistleblowing Channel -Anti-Fraud Policy -Garanti Bank and SMEs -Energy Efficiency Projects -Career Opportunities Goals -Appendix 5: Anti-Fraud -Garanti Code of Conduct -Sustainability Collaboration -Waste Management Program Policy -Whistleblowing Channel with International Financial -Water Management -Promotion Opportunities -Appendix 6: Activities of -Transaction Monitoring Institutions -More Sustainability Initiatives -Compensation and Rewards The Bank’s Compliance -Prevention of Conflicts of -Garanti Bank Supports from Garanti Bank -Fair and Transparent Department Interest Women Entrepreneurs Premium Models -Appendix 7: Role of the -Implementation of Basel -Supporting Rural -Garanti Bank Pension Fund Disciplinary Committee Regulations Development with Foundation -Appendix 8: Garanti’s -Sustainability Committee “Agricultural Banking” -Learning and Development Integrated Subsidiaries -Sustainability Team Products -Raising Awareness on -Appendix 9: Climate -Efforts to Expand the Sustainability Change Position Statement Informed Customer Group -Gelecek (Future) Meetings and Action Plan -Environmental and Social -4 Season Meetings -Appendix 10: Ungc and Risk Assessment Process -Garanti Managers Summit Weps Principles Analysis -Management of Indirect -Employee Satisfaction Against Gri G4 Content Water Footprint -Suggestion and Idea Platforms ABOUT THIS REPORT This fourth sustainability report from T. Garanti Bankası A.Ş. (‘Garanti Bank’) represents the Bank’s performance on the issue of sustainability as determined in parallel with the feedback of its stakeholders for the 12 month period ending 31 December 2015. Where relevant, the Bank has also included data from the previous reporting period for comparative purposes. Scope 1 and Scope 2 greenhouse gas (GHG) emissions, water consumption, energy consumption, renewable energy portfolio and Environmental and Social Impact Assessment Process (ESIAP) data in this report as defined in “Customers through Sustainable Finance” and “Managing Environmental Impacts of Operations” sections were selected to be independently audited. KPMG provided a limited level of assurance on the selected information in this report. The report has been prepared in accordance with Global Reporting Initiative’s (GRI) G4 reporting guidelines to comprehensive option and also includes application of the G4 Sector Disclosures Financial Services sector supplement. There is a comprehensive index according to GRI G4 principles presented in the annexes. Garanti Sustainability 2015 Report 7 Our Core Values OUR VISION “Our customers...” Continuous progress is to be the best bank in Europe. »Are at the center of all our operations and efforts. »We sustain our quality through continuous »We always strive to satisfy our customers above improvement. and beyond their expectations. »Investing in our people and technology to »Towards our customers, we are always clear, achieve continuous progress is an inseparable courteous, helpful, solution-oriented and pleasant. element of our policy. »Our approach to improving quality is proactive; we aim to identify the needs and expectations of OUR MISSION “Garanti Bank and its employees have high moral our customers even before they are voiced and values” strive to provide solutions. is to continuously and noticeably increase »We conscientiously follow rules and regulations the value we create for our customers, without exception. Our environmental and social responsibilities shareholders, employees, the society and the »Clear individual and organizational conscience is environment by utilizing our influence, agility of paramount importance. »We undertake every effort to be beneficial to the and organizational efficiency. society, the environment and humankind. »We believe the environmental and social values “The most important element for us is the Garanti creates for its stakeholders will set an human factor” example not only for the banking sector but also for the entire economy and provide significant »We continuously invest in our utmost valuable contributions to our national development. OUR STRATEGY human resources. »Our quality is driven and ensured by our is to always approach our customers in employees. Teamwork a “transparent”, “clear” and “responsible” »We put emphasis on delegating responsibilities manner, improve customer experience and encourage our employees to take initiative. »We believe in effective teamwork and open lines continuously by offering products and services »We notice and value the recognition of good of communication. that are tailored to their needs, maintain work and exemplary behavior. »We work in collaboration towards common goals sustainable growth by creating value for all »We are energetic, we support each other, we and produce results. our stakeholders. share information and experience. »We are opposed to strict layers of hierarchy. »We are excited about our work and leaders in »To realize our vision, we work as a single-heart our field. and a single-mind. »We are always well-mannered and respectful in our speech and behavior among each other. 8 Garanti Sustainability 2015 Report Garanti Sustainability 2015 Report 9 KEY 34% share in Turkey’s total operational SUSTAINABILITY installed wind wind power capacity 12 examined projects HIGHLIGHTS in accordance with ESIAM 150 IN 2015 disabled-friendly branches »The only Turkish company to Case for Responsible Corporate »Disclosed its Climate Change »Supported the European »Examined 12 projects »Organized 100 meetings in 68 be selected for the Dow Jones Adaptation: Strengthening Position Statement & Action Plan Bank for Reconstruction and thoroughly in accordance with provinces with nearly 31,000 Sustainability Emerging Markets Private Sector and Community Development (EBRD) 2015 Environmental and Social Impact SMEs with Garanti Anatolian Index. Resilience”. »Successfully qualified for Energy Efficiency Finance Forum Assessment Model (ESIAM). Meetings. 12 the second year in a row for and declared a new commitment »First bank in Turkey to sign the »The only Turkish company the Borsa Istanbul (BIST) on energy efficiency. »Achieved an increase of 32% in »Total loans provided to United Nations Global Compact’s that was included in the CDP Sustainability Index as 1 of the 29 the amount of recycled waste. renewable energy investments (UNGC) Business Leadership Global Leaders Report by Turkish companies that qualified. »6,662 people attended the since 2006 exceeded US Dollar Criteria on Carbon Leadership. being selected to the highest Women Entrepreneurship »Supported two workshops for 4 billion. performance band (A) and was »Obtained limited assurance for Meetings, which have been held responding companies by being »First Turkish bank to join the awarded with the CDP 2015 its water consumption, energy in 31 provinces since 2008. the main sponsor to CDP Turkey »Share in Turkey’s total “Caring for Climate” (C4C) Climate Performance Leadership consumption, renewable energy Water Program. operational installed wind power initiative, which supports the award. portfolio and Environmental »Provided 2.8 billion TL loans capacity was 34%. stance of the business world and Social Impact Assessment to women entrepreneurs by the »Established the Woman against climate change. »Obtained the highest score Process (ESIAP) for the first end of