Türkiye Halk Bankasi : 2023 CDP Climate Change Report

TÜRKİYE HALK BANKASI A.Ş. CDP Climate Change Questionnaire 2023 Friday,

July 21, 2023

Welcome to your CDP Climate Change

Questionnaire 2023

C0. Introduction

C0.1

(C0.1) Give a general description and introduction to your organization.

Halkbank was established in 1938 to support tradesmen, and craftsmen and to accelerate permanent economic development and has become one of Turkey's steadily growing, well- established, pioneering, and respected brands. Pioneering the development of the Turkish banking sector, the Bank continues to serve the real sector with its innovative products and services with a global vision, with 1,032 branches in the country and 6 abroad as of the end of 2022. Halkbank aims for a livable world where economic, social, and environmental impacts are in balance in all areas where it creates value, especially in its own operations, and growth takes place without compromising these effects. In this direction, it shapes its work with the awareness that it is possible to move forward more strongly towards the future by focusing on sustainable economic, environmental and social development. In this context, it develops products such as the Green Energy Loan Package to support efforts to reduce carbon emissions through renewable energy and energy efficiency projects in order to direct investments to more sustainable technologies and businesses. This package, provides renewable energy investment, green workplace investment, energy efficiency, green-certified construction project, and green light commercial vehicle loans. In addition, it also offers free technical consultancy services for the efficient realization of investment in a way to benefit from the knowledge and experience of engineers with energy manager certificates. Going beyond just providing financial resources to companies the use of resources, while Halkbank works hard to produce innovative solutions for such demands and needs of its customers, it pays great attention to ensuring that its activities are compatible with factors such as environmental protection and energy efficiency. It continues to implement digitalization practices that will accelerate the transition to emission reduction, waste management, and paperless banking, minimizing the carbon footprint resulting from its operations. In line with this, Halkbank has certified all its service buildings, including its Head Office and branches, with the ISO 14001 Environmental Management System and ISO 50001 Energy Management System, and becoming the first bank in the Turkish banking industry to establish and get certified in the ISO 50001 Energy Management System. It uses a program namely "İKLİM", which it has developed with its own internal resources, in order to manage, monitor, evaluate and report these systems by integrating the relevant environmental and energy management systems and implementing all the requirements. In addition, the Bank continues its waste reduction efforts with the

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TÜRKİYE HALK BANKASI A.Ş. CDP Climate Change Questionnaire 2023 Friday,

July 21, 2023

principle of separating its wastes and zero waste within the responsible banking culture, taking into account waste management within the scope of reducing the environmental impacts of its activities. As of 2019, all service locations have complied with the Zero Waste System, and in 2021, 1,055 service locations, including all branches, received Zero Waste Certificates. Halkbank also continues to contribute to "Green and Circular Economy" issues, Turkey's green agreement harmonization process, and studies in this context with the initiatives it has developed under the umbrella of Sustainable Banking.

In addition, Halkbank has been reporting to the Carbon Disclosure Project, one of the public disclosure platforms, since 2013 due to the importance it attaches to the transparency of its operations and has been included in the BIST Sustainability Index since 2017. It is also committed to achieving net-zero by 2050 as one of the first signatories of the NZBA in Turkey by mid-2022.

C0.2

(C0.2) State the start and end date of the year for which you are reporting data and indicate whether you will be providing emissions data for past reporting years.

Reporting year

Start date

January 1, 2022

End date

December 31, 2022

Indicate if you are providing emissions data for past reporting years

No

C0.3

(C0.3) Select the countries/areas in which you operate.

Turkey

C0.4

(C0.4) Select the currency used for all financial information disclosed throughout your response.

TRY

C0.5

(C0.5) Select the option that describes the reporting boundary for which climate- related impacts on your business are being reported. Note that this option should align with your chosen approach for consolidating your GHG inventory.

Operational control

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TÜRKİYE HALK BANKASI A.Ş. CDP Climate Change Questionnaire 2023 Friday,

July 21, 2023

C-FS0.7

(C-FS0.7) Which activities does your organization undertake, and which industry sectors does your organization lend to, invest in, and/or insure?

	Does your organization	Industry sectors your organization
	undertake this activity?	lends to, invests in, and/or insures
Banking (Bank)	Yes	Agricultural products wholesale
		Animal processing
		Animal products wholesale
		Apparel design & manufacturing
		Basic plastics
		Coal extraction & processing
		Cotton farming
		Dairy & egg products
		Fast food
		Finished wood products
		Fruit farming
		Grain & corn farming
		Hypermarkets & superstores
		Metal smelting, refining & forming
		Natural gas extraction
		Oil & gas refining
		Print publishing
		Supermarkets, food & drugstores
		Textiles
		Wood & paper products wholesale
Investing (Asset manager)	No
Investing (Asset owner)	No
Insurance underwriting	No
(Insurance company)

C0.8

(C0.8) Does your organization have an ISIN code or another unique identifier (e.g., Ticker, CUSIP, etc.)?

Indicate whether you are able to provide a unique identifier for	Provide your unique
your organization	identifier
Yes, a Ticker symbol	HALKB
Yes, an ISIN code	TRETHAL00019

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TÜRKİYE HALK BANKASI A.Ş. CDP Climate Change Questionnaire 2023 Friday,

July 21, 2023

C1. Governance

C1.1

(C1.1) Is there board-level oversight of climate-related issues within your organization?

Yes

C1.1a

(C1.1a) Identify the position(s) (do not include any names) of the individual(s) on the board with responsibility for climate-related issues.

Position of	Responsibilities for climate-related issues
individual or
committee
Board-level	The Board Level Sustainability Committee reports to the Bank's Board of Directors
committee	to coordinate the Bank's sustainability activities. The committee is responsible of
	the Coordination of the bank's sustainability efforts, and running an assessment of
	the economic, environmental, and social effects of its activities, to evaluate and
	manage the sustainability related risks and making decisions to take necessary
	actions and overseeing the climate-related risks that the bank would face.
	Also risks and other matters subject to board's authorization level are escalated to
	board. The committee consists of 20 members at the level of board members (2),
	deputy general managers (5), group head (1), department heads (12). The
	Chairman of the sustainability committee serves as independent board member,
	and Vice Chairman of the sustainability committee serves as member of the board.
	Since the Head of Risk Management Department, the Head of Credit
	Management, Head of Credit Policies Department, Firm and Project Analysis and
	Head of Internal Systems Group is also a member of the sustainability committee,
	there is a strong oversight regarding the climate issues.
	Decision made by the committee : In 2021, the Committee decided to improve
	business processes in order to adapt to national and international developments
	within the scope of combating the climate crisis. In this direction, the Committee
	has decided to establish a Climate Action Plan , which includes science-based
	targets, analyses of direct and indirect risks and opportunities of climate change,
	and comprehensive studies on sustainable finance products and has started
	working in this direction. In addition, Halkbank aims to achieve a net-zero portfolio
	by at least 2050 with the near-term emission targets it will set in the light of climate
	science with science-based targets. The bank has also joined the Net-Zero
	Banking Alliance and committed to setting GHG emission reduction targets across
	its operations and its portfolio in line with SBTI criteria in 2022.

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TÜRKİYE HALK BANKASI A.Ş. CDP Climate Change Questionnaire 2023 Friday,

July 21, 2023

C1.1b

(C1.1b) Provide further details on the board's oversight of climate-related issues.

Frequency with	Governance	Scope of	Please explain
which climate-	mechanisms into	board-level
related issues	which climate-	oversight
are a	related issues are
scheduled	integrated
agenda item
Scheduled - all	Reviewing and	Climate-related	The Board of Directors carries out the
meetings	guiding annual	risks and	Sustainability Management by joining the
	budgets	opportunities to	Sustainability Committee with two
	Overseeing major	our own	members (at the level of the Chairman and
	capital expenditures	operations	the Vice Chairman). The sustainability
	Overseeing	Climate-related	committee meets at least 4 times a year
	acquisitions,	risks and	for its regular scheduled meetings. In
	mergers, and	opportunities to	regular meetings, risks and opportunities
	divestitures	our banking	related to climate change and other
	Reviewing	activities	sustainability issues are evaluated and
	The impact of	targets are determined in our direct
	innovation/R&D
	operations and bank loan and investment
	priorities	our own
	activities. For example, Halkbank's Net-
	Overseeing and	operations on
	Zero targets and strategy is carried out by
	the climate
	guiding employee
	the Sustainabiltiy Committee which
	The impact of
	incentives
	includes members of BOD.
	Reviewing and	our banking
	activities on the
	guiding strategy	Budget adjustments and performance
	climate
	Overseeing and
	targets are discussed and decided by a
	guiding the		majority vote to achieve climate-related
	development of a		targets. All our banking activities are
	transition plan		included in the integrated management
	Monitoring the		system. Environmental performances are
	implementation of a		constantly monitored and evaluated, taking
	transition plan		into account the expectations of internal
	Overseeing and		and external stakeholders. Based on these
	guiding scenario		evaluations, goals, and targets are
	analysis		determined and necessary activities are
	Overseeing the		carried out with continuous improvement.
		In addition, the periodic performance of the
	setting of corporate
		targets is compared with the results of the
	targets
		determined period, and necessary
	Monitoring progress
		revisions are decided. Decisions on
	towards corporate
		rewarding performance on sustainability
	targets
		issues are also taken at regular meetings.
			At the meetings, climate-related issues are
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