Türkiye Halk Bankasi : 2023 CDP Water Report

TÜRKİYE HALK BANKASI A.Ş. CDP Water Security Questionnaire 2023 Friday, July 21, 2023

Welcome to your CDP Water Security Questionnaire 2023

W0. Introduction

W0.1

(W0.1) Give a general description of 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 industry 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 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 toward 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 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 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

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TÜRKİYE HALK BANKASI A.Ş. CDP Water Security Questionnaire 2023 Friday, July 21, 2023

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, 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 internal resources, 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 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 contributes 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.

W0.2

(W0.2) State the start and end date of the year for which you are reporting data.

Reporting year

Start date	End date
January 1, 2022	December 31, 2022

W0.3

(W0.3) Select the countries/areas in which you operate.

Turkey

W0.4

(W0.4) Select the currency used for all financial information disclosed throughout your response.

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TÜRKİYE HALK BANKASI A.Ş. CDP Water Security Questionnaire 2023 Friday, July 21, 2023

TRY

W0.5

(W0.5) Select the option that best describes the reporting boundary for companies, entities, or groups for which water impacts on your business are being reported.

Companies, entities or groups over which operational control is exercised

W0.6

(W0.6) Within this boundary, are there any geographies, facilities, water aspects, or other exclusions from your disclosure?

No

W0.7

(W0.7) 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 your organization.	Provide your unique identifier
Yes, a Ticker symbol	HALKB
Yes, an ISIN code	TRETHAL00019

W1. Current state

W1.1

(W1.1) Rate the importance (current and future) of water quality and water quantity to the success of your business.

Direct use

importance

rating

Indirect use

importance

rating

Please explain

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TÜRKİYE HALK BANKASI A.Ş. CDP Water Security Questionnaire 2023 Friday, July 21, 2023

Sufficient amounts of	Important	Important	i&iii) The reason for importance rating and future water dependency for direct use: Halkbank
good quality freshwater			uses water directly to meet the clean drinking water needs of employees in its operations and
available for use			to ensure the cleanliness of the branches. Also, the Bank is committed to protecting its
			employees' right to access clean water and providing a healthy working environment.
			Therefore, sufficient amounts of good quality freshwater availability are important and will
			continue to be important in the future since Halkbank operates in areas that are likely to
			experience water scarcity.
			ii&iv) The reason for importance rating and future water dependency for indirect use: Water
			use is quite high in the production operations of the customers to whom the Bank provides
			loans. Therefore, sufficient amounts of good quality freshwater availability are essential and
			will continue to be important in the future in indirect water use, since Halkbank's customers
			operate in areas that are likely to experience water scarcity.
Sufficient amounts of	Neutral	Neutral	i&iii) The reason for importance rating and future water dependency for direct use: The use of
recycled, brackish and/or			recycled/manufactured water in Halkbank's direct operations is currently only possible in a
produced water available			very small portion of its branches. Reverse osmosis treatment systems have been installed in
for use			the kitchens of the Halkbank Headquarters Building and the Davutpaşa Assistant
			Headquarters Service Building to provide quality drinking water. For this reason, it was chosen
			as neutral because it is not of great importance yet. In the Bank's direct operations, there may
			be an increase in the use and importance of recycled/brackish water in the future as Halkbank
			continues to implement new technologies to reduce the use of fresh water in its branches.
			ii&iv) The reason for importance rating and future water dependency for indirect use: In its
			indirect operations, some of Halkbank's suppliers and customers use recycled water where
			appropriate, such as on production lines. Therefore, importance was chosen as neutral. Also
			for indirect use, customers and suppliers will need to reduce their use of fresh water in the
			future due to water scarcity. In this case, Halkbank anticipates that circular water systems will
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TÜRKİYE HALK BANKASI A.Ş. CDP Water Security Questionnaire 2023 Friday, July 21, 2023

be applied to several operations, which will increase the use of recycled/brackish water. For this reason, its importance is expected to increase in the coming years.

W1.2

(W1.2) Across all your operations, what proportion of the following water aspects are regularly measured and monitored?

	% of	Frequency of	Method of measurement	Please explain
	sites/facilities/operations	measurement
Water withdrawals -	100%	Monthly	Halkbank uses only domestic water.	Halkbank has been calculating its carbon
total volumes			Potable water and the mains water used	footprint as an integral component of its
			for this purpose are billed by the	comprehensive environmental
			municipality and local suppliers. Each	management system. In addition,
			office records volume and price	Halkbank calculated the Water Footprint
			information on these invoices monthly in	for 2022 for the first time. To facilitate the
			the IKLIM software. Each month, the	monitoring and collection of the necessary
			Department of Sustainable Practices,	data for this assessment, the bank's IT
			Environment, and Energy Management	department developed the IKLIM software,
			uses this software to monitor the total	which has been in use since 2019. This
			amount of water withdrawal.	software enables the precise
				measurement of water aspects across all
				facilities, including department heads,
				headquarters, and branches, aligning with
				the environmental management system.
				With the aid of the software, Bank
				achieves a complete and accurate record
				of 100% water withdrawal volumes.This
				monitoring system aligns with Bank's
				commitment to optimizing water usage,
				enhancing water efficiency, and
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