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Climate Transition Roadmap 2026

“More than a bank”
in climate transition…

The Path to Green Transition in Electricity Generation

The electricity generation sector is one of the most crucial stops on the climate transition journey. In this journey, we support the sector’s transition with a robust financing approach.

We aim to reduce our emissions intensity in the electricity generation sector by 69% by 2030. Correspondingly, we pave the way for renewable energy investments, and strengthen the infrastructure through hybrid facilities, modern grids, and storage solutions. We accelerate the sector’s transition by incentivizing the financing of investments in innovative and emerging technologies that enable low-carbon production.

The Path to Decarbonization in Iron and Steel Production

We are steering the iron and steel sector, a cornerstone of our economic development, toward the competitive and low-carbon world of the future. We stand as the primary supporter of innovative investments transforming conventional blast furnaces into eco-friendly, modern electric arc furnaces (EAF) and direct reduced iron (DRI) technologies. Through incentivizing renewable energy integration across this ecosystem, we target a 19.8% reduction in emission intensity by 2030. By harmonizing the strength of steel with ecological balance, we are breathing new life into our industry.

The Path to a Clean Future in Cement Production

The cement sector is one of the most strategic stops on the climate transition journey. Emissions inherent to the production process set this sector apart from other industries, launching the transformation at the very core of production.

We aim to reduce our emission intensity in the cement sector by 19.8% by 2030. We are increasing the use of alternative materials that reduce the clinker ratio, and implementing a structural transformation in production processes through waste-derived fuels and biomass. While increasing efficiency through practices such as kiln modernization and waste heat recovery, we pave the way toward the sector’s carbon-neutral future with Carbon Capture, Utilization, and Storage (CCUS) technologies.

The Path to Efficiency in the Agriculture (Crop Production) Sector

The agriculture (crop production) sector is one of the most sensitive and impactful stops on the climate transition journey. Because in this journey, every crop, production method, and geography charts its own unique course.

We manage the transformation in agriculture through a crop-specific approach, taking sectoral dynamics into account. We aim to reduce our emissions intensity by 11.6% in wheat, 14% in maize, and 11.1% in rice by 2030. We strengthen the sustainable production infrastructure through investments in modern irrigation solutions which enhance water efficiency, renewable energy utilization, and efficient mechanization. We address agricultural productivity growth and emissions reduction simultaneously, contributing to the strengthening of food supply security by supporting a climate-resilient production framework.

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Our CEO’s Remarks

Backed by our deeply rooted heritage of over 162 years, we have always been at the forefront of every aspect of the Turkish economy, driven by our strong balance sheet, and a broad footprint extending from agriculture to industry, energy, and trade. Today, with the same determination, we stand behind the low-carbon future of our economy.

Alpaslan Çakar
CEO

Alpaslan Çakar, CEO

Summary Overview of Ziraat Bank’s Sectoral Emissions Intensities and Targets

SectorMetricReference ScenarioEmission ScopeEmission Intensity 2024 (base year)2030 Reduction Target
Electricity GenerationtCO₂e/MWhInternational Energy Agency (2050 Net Zero)Scope 1 and 20.5869%
Iron and SteeltCO₂e/ton steelInternational Energy Agency (2050 Net Zero)0.7919.8%
CementtCO₂e/ton cementInternational Energy Agency (2050 Net Zero)0.8419.8%
Agriculture (Wheat)tCO₂e/ton productScience-Based Targets Initiative Forest, Land, and Agriculture (SBTi FLAG) 1.5°C0.4211.6%
Agriculture (Maize)0.4114.0%
Agriculture (Rice)0.9411.1%

Ziraat Bank’s Sustainability Journey

  • SDG 4: Quality Education
  • SDG 5: Gender Equality
  • SDG 6: Clean Water and Sanitation
  • SDG 7: Affordable and Clean Energy
  • SDG 8: Decent Work and Economic Growth
  • SDG 9: Industry, Innovation and Infrastructure
  • SDG 10: Reduced Inequalities
  • SDG 12: Responsible Consumption and Production
  • SDG 13: Climate Action

  1. 2013

    • Bank’s first Sustainability Report published.

  2. 2014

    • Bank’s “Sustainability Policy” published.

  3. 2019

    • Bank’s first Integrated Annual Report published.
    • The Zero Waste Certificate received for the first time.
    • In 2025, Zero Waste Certificate was received for a total of 1,668 service buildings.

  4. 2020

    • Green, Social, Sustainable (GSS) Finance Framework
    • Second Party Opinion
    • Bank’s “Environmental and Social Impact Management Policy in Lending Activities” published.
    • The Responsible Banking principle officially adopted.

  5. 2021

    • The First Sustainability Bond issuance (600 mio USD, 5 years maturity)

  6. 2022

    • I-REC Certificate received
    • First Sustainability-Linked Syndicated Loan (April 22, 367 days, USD 1.2 billion)
    • “Environmental and Social Impact Management Policy in Lending Activities” became fully operational.

  7. 2023

    • Bank’s Sustainability Committee established.
    • LEED Green Building Certification (Platinum)
    • Bank’s first CDP Report published.
    • PCAF-aligned financed emissions calculated for the first time.

  8. 2024

    • Within the scope of the LACP Vision Awards, our 2023 Integrated Activity Report received a total of 10 awards, including gold in the Commercial Banks and Financial Services Institutions category.

  9. 2025

    • Second Sustainability Bond was issued (500 mio USD, 5 years maturity)
    • Carbon Reduction Loan launched.
    • As part of the project that started in 2024, efforts to collect and recycle coffee waste have begun.
    • Bank’s first Turkish Sustainable Reporting Standards (TSRS) report published.
    • Sustainability Management System actively implemented.
    • For the first time, a second Sustainability-Themed Syndicated Loan was secured in the same year in October 2025. (988 mio USD)
    • In the 2025 CDP Reporting, Ziraat Bank achieved B grade in the CDP Climate Change category while also successfully maintaining its A grade in the CDP Water Security category.
    • Largest Sustainability Themed Single Tranche Syndicated Loan (April 2025, USD 1.75 bn) received by a financial institution in Türkiye.
    • Self-consumption solar power plant in Kayseri Pınarbaşı, which has an installed capacity of 64 MWp and aims to meet electricity needs of Istanbul Financial Center, including all branches and ATMs. In 2025, approximately 93% of the Bank’s total electricity needs are met by renewable energy sources.

Our Core Decarbonization Principles

Ziraat Bank’s portfolio decarbonization approach

  1. Leaf icon

    1. Supporting customers’ transition

    Active support to transition through the financing of modernization and renewable energy investments in high-emission sectors

  2. Bar chart icon

    2. Green transformation of the portfolio

    Growing financing volume for low-emission customers, with priority given to low-carbon technologies in new lending

  3. Alert icon

    3. A prudent approach to high-emission segments

    Prudent financing policy for segments with high climate risk, with climate risk assessment applied to long-term loans

  4. Scale icon

    4. Last resort: Carbon offsetting

    Limited, last-resort use of carbon credits in areas where emission reduction is not feasible, in line with international standards

Emissions Scope and
Measurement Approach

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Financed Emissions (Scope 3 - Category 15)

At the core of Ziraat Bank’s decarbonization strategy lies its financed emissions, which fall under Scope 3 - Category 15 and originate from its loan portfolio, rather than its own operational emissions. Utilizing the PCAF methodology, the total indirect emissions induced by the Bank’s portfolio in the 2024 base year were measured and verified as 16,320,523.68 tCO₂e.

Climate Profile of the Existing Portfolio and Base Emissions

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Metrics Tailored to the Operational Structure of Each Sector

In carbon intensity calculations, metrics tailored to the operational structure of each sector are utilized. These benchmark metrics include tCO₂e/MWh for electricity generation, tCO₂e/ton of steel for iron and steel, tCO₂e/ton of cement for the cement sector, and tCO₂e/ton of product for the agricultural sector, in alignment with FLAG standards.

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Climate Transition Roadmap

Two workers in hard hats in a steel plant control room, furnace glow behind the glass Globe icon

Compliance with International Standards and Scientific Scenarios

Sectoral decarbonization targets are entirely science-based, referencing the IEA 2050 Net Zero scenarios for the electricity generation, iron-steel, and cement sectors. For the agriculture (crop production) sector, pathways aligned with the SBTi FLAG 1.5°C are followed, while target-setting processes are backed by premier global reporting frameworks such as IFRS, ITPN, and PCAF.

Sectoral Decarbonization Targets and Methodology

  • 2024 (base year)
  • 2030 (target)

Electricity Generation Emission Reduction Target

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69%

Electricity generation sector emissions intensity (tCO₂e/MWh)

Scope: Scope 1 and 2 emissions

Reference Roadmap: International Energy Agency (2050 Net Zero)

PCAF score: 3.34

20240.58
20300.18

Iron and Steel Production Emission Reduction Target

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19.8%

Iron and steel sector emissions intensity (tCO₂e/ton steel)

Scope: Scope 1 and 2 emissions

Reference Roadmap: International Energy Agency (2050 Net Zero)

PCAF score: 2.89

20240.79
20300.64

Cement Production Emission Reduction Target

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19.8%

Cement sector emissions intensity (tCO₂e/ton cement)

Scope: Scope 1 and 2 emissions

Reference Roadmap: International Energy Agency (2050 Net Zero)

PCAF score: 2.83

20240.84
20300.67

Wheat Production Emission Reduction Target

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11.6%

Wheat (agriculture) sector emissions intensity (tCO₂e/ton product)

Scope: Scope 1 and 2 emissions

Reference Roadmap: Science-Based Targets initiative Forest, Land, and Agriculture (SBTi FLAG) 1.5°C

20240.42
20300.37

Maize Production Emission Reduction Target

Downward trend arrow icon

14%

Maize (agriculture) sector emissions intensity (tCO₂e/ton product)

Scope: Scope 1 and 2 emissions

Reference Roadmap: Science-Based Targets initiative Forest, Land, and Agriculture (SBTi FLAG) 1.5°C

20240.41
20300.35

Rice Production Emission Reduction Target

Downward trend arrow icon

11.1%

Rice (agriculture) sector emissions intensity (tCO₂e/ton product)

Scope: Scope 1 and 2 emissions

Reference Roadmap: Science-Based Targets initiative Forest, Land, and Agriculture (SBTi FLAG) 1.5°C

20240.94
20300.84
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Monitoring, Reporting, and Update Mechanism

Ziraat Bank Climate Risk Heatmap

Risk Level

Risk Class

Low

  • Financial Services
  • Electronic Products
  • Retail Trade
  • Professional Services
  • Other Services
  • Health
  • Communication
  • Education
  • Electricity Generation-Renewable
  • Operations of Cross-Border Institutions and Organizations

Medium-Low

  • Other Production
  • Public Administration and Defense
  • Accommodation
  • Storage
  • Trade in Chemical Products
  • Administrative Services
  • Real Estate Activities
  • Food Services
  • Entertainment and Art
  • Household Activities

Medium

  • Infrastructure Construction
  • Construction
  • Food
  • Textile
  • Automotive Trade
  • Forestry
  • Electricity Transmission
  • Fishery
  • Railway Transport

Medium-High

  • Agriculture
  • Automotive
  • Other Metals
  • Mining
  • Construction Materials
  • Basic Chemical Products
  • Other Chemical Products
  • Aluminum
  • Electricity Trading
  • Other Road Transportation
  • Water Supply and Waste Management

High

  • Iron-Steel
  • Electricity Generation-Other
  • Livestock Farming
  • Petroleum Products
  • Road Transportation
  • Cement
  • Air Transportation
  • Maritime Transportation
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Portfolio Performance Progressing in Alignment with Climate Targets

To ensure that climate targets advance in alignment with portfolio performance, Ziraat Bank annually updates its financed emissions, emission intensity indicators, customer transformation levels, and the implementation status of selected actions.

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Financing the Transition

Ziraat Bank plays an active role in sectoral transition by financing technology modernization and renewable energy investments across all sectors. The Bank intends to pivot its portfolio composition toward a more sustainable, resource-efficient, and green configuration by steering its risk appetite toward low-carbon technologies.

Improvement Areas for the Climate Transition Strategy

Ziraat Bank’s focal areas for the upcoming period include enhancing data quality, deepening sector-specific strategies, ensuring a more systematic integration of climate risks into decision-making processes, and developing sustainable finance products.

Silhouette of a woman with arms outstretched in a sunlit field Market chart icon

Ziraat Bank’s Carbon Markets Vision

In the upcoming period, as the National ETS comes into effect, Ziraat Bank will continue to closely monitor the emerging national carbon market structure, credit offsetting rules, sector-based methodologies, and regulations regarding the integration of voluntary and compliance markets.

A green globe with a sprout growing from it among leaves Risk shield icon

Integrating Climate Risk into Financial Decision-Making

Climate-related risks are systematically embedded into Ziraat Bank’s corporate risk management framework and risk heat maps. The financial implications of these risks on Expected Credit Losses (ECL) under TFRS 9 models are quantified through comprehensive stress tests conducted under Orderly, Disorderly, and Hot House World scenarios.

“More than a bank” in climate transition

Climate change is a broadscale journey that transcends environmental boundaries, reaching every single stop from the economy to all areas of life. Moreover, this journey does not offer a fixed route; it is continuously reshaped by changing conditions and uncertainties.

As Türkiye’s largest and most deep-rooted bank, we steer the climate transition journey with our ability to find the right course, no matter which way the wind blows. Driven by this mindset, we set out on this path with our own footprint; yet this journey is more than just about our own. We are expanding our sphere of influence by prioritizing the transition of the sectors we finance. Accordingly, we have crafted a science-based Climate Transition Roadmap, focusing on the electricity generation, iron and steel, cement, and agriculture (crop production) sectors.

We have approached our Climate Transition Roadmap as a holistic guide that encompasses all stops of the economy. Through our science-based and intensity-based targeting approach, we harmonize economic growth with carbon reduction as we shape this process together with our clients by financing their investments in modernization, efficiency, renewable energy, and digital transformation.

For we are deeply aware of the importance of finding the right path regardless of how the road changes, staying the course with resolve, and advancing together for our country.

Our CEO’s Remarks

We don’t just finance the future; we build it together.

The climate crisis is no longer a future scenario, but an urgent reality of today. It is a global process that forces the entire economy from manufacturing to trade, energy to finance into a structural transformation. Every strategic step taken in this field today is a fundamental element that will directly determine medium and long-term competitiveness, financial resilience, and sustainable development performance.

Ziraat Bank is a pivotal actor in this transformation, aligned with Türkiye’s 2053 Net Zero Emission vision. With our deep-rooted history spanning over 162 years, we guide sustainable development by financing sectoral transition across our wide sphere of influence, stretching from agriculture to industry, and energy to trade. While mobilizing our financial strength for a green future, our focus is not only on our own operations but also on accelerating the transition of all the sectors we finance. We believe that permanent and meaningful change is only possible through the collective action of the real sector, the financial sector, public authorities, and other stakeholders.

Grounded in this conviction, the Climate Transition Roadmap we have crafted is more than just a written strategy; it is a dynamic process based on scientific foundations that we will continuously refine in response to evolving circumstances of today. As Ziraat Bank, our goal is both to measure our emissions and to manage and transform this impact in line with our responsible banking principles. In this context, we prioritize the electricity generation, iron and steel, cement, and agriculture sectors due to their emission intensities and strategic transition potentials.

Environmental, social, and governance (ESG) criteria have now become one of the most critical aspects of conducting business across global value and supply chains. This reality turns climate and ESG performance directly into a competitive advantage, especially for our customers who export and are integrated into international supply chains. Within this framework, we position our Bank as a strategic partner standing by our customers during their ESG transition process. By further developing our products and services with this perspective, we aim to enhance their access to finance as well as to secure their foothold in global supply chains.

As Ziraat Bank, we view the climate transition as a strategic opportunity area that supports sustainable development and increases the global competitiveness of our real sector. We manage this process with determination through our strong corporate structure and our continuously developing capacity. Our primary priority is to make the highest contribution to our country’s transition to a low-carbon economy by bolstering our customers’ access to finance.

As we advance on this journey with our guiding vision of being “More Than a Bank” in climate transition, too, we will continue to refine our transition roadmap by closely monitoring national and international developments, ensuring we remain an active driver of this transition together with our customers and all stakeholders.

I would like to thank all our stakeholders who have embarked on this transition journey together with our Bank for the sustainable future of our country in this roadmap.

Alpaslan Çakar
CEO

Alpaslan Çakar, CEO