Impact Management Working Principles

Development and Investment Bank of Türkiye has demonstrated its leadership in the international arena by becoming the first and only Turkish institution to sign the Impact Management Working Principles (Impact Principles).

In September 2022, the Bank proved its pioneering position by publishing Türkiye’s first Impact Report in line with the Impact Principles. This independently audited report provides information on the Bank’s strategy to create positive environmental and social impact and its impact management systems and processes.

The purpose of the report is to transparently share the Bank’s commitments and approach to managing and enhancing its environmental and social impact. This demonstrates that the Bank has an impact management approach that not only aims to generate economic benefits, but also considers social and environmental impacts.

The Bank takes the responsibility for developing the impact investing ecosystem and achieving Türkiye’s 2053 net zero emissions target seriously. In 2023 and beyond, the Bank is committed to continuously contribute to its activities focused on Impact Investing through current and future international thematic resources and Türkiye Development Fund components. This reflects Development and Investment Bank of Türkiye’s ambition to become one of Türkiye’s leading institutions in impact investing.
With this global standard, the Bank has committed to managing its corporate banking, project finance, venture capital and private equity investment activities through an “impact lens” in a disciplined, transparent and measurable manner. As one of the founding members of the Impact Investing Advisory Board (EYDK), the Bank supported the goals to further advance the impact investing model in Türkiye and to create an effective impact investing ecosystem.

The Bank emphasized the need for discipline, transparency and measurability in the management of impact investments and committed to implementing these principles. Through both local and global partnerships, the Bank continues to pursue its vision of supporting companies, organizations and funds in achieving financial, social and environmental gains.

The Bank’s priority to fund energy efficiency, resource efficiency, employment, technological development and digitalization projects is in line with its goal of creating a positive environmental impact in the fight against climate change.

In 2022, strategies governed by this framework and principles helped reduce approximately 4.4 million tons of CO2 equivalent greenhouse gas emissions annually. This is a significant achievement that demonstrates the Bank’s commitment to sustainable development and environmentally friendly practices.

As of 2022, 173 signatory organizations from 39 countries, with assets worth approximately USD 520 million, joined the Impact Management Working Principles (Impact Principles).

These include leading institutions such as the International Finance Corporation (IFC), European Bank for Reconstruction and Development (EBRD), European Investment Bank (EIB), American International Development Finance Corporation (OPIC), Multilateral Investment Guarantee Agency (MIGA), RockCreek, Inter-American Development Bank (IDB), Dutch Development Bank (FMO), German Development Finance Institution (DEG).

Contribution to Türkiye’s development process as a model of sustainable finance is at the center of Development and Investment Bank of Türkiye’s strategic banking objectives.

In this context, the Bank has signed a series of ESG-themed loan agreements with international financial institutions such as the World Bank, Japan Bank for International Cooperation, Asian Infrastructure Investment Bank and China Development Bank.

By the end of 2022, approximately 79 percent of the Bank’s portfolio consisted of sustainability-themed loans. These loans contribute directly and indirectly to 15 of the United Nations Sustainable Development Goals. ESG-themed financing focuses on areas such as renewable energy, energy efficiency, employment, infrastructure, SMEs, health and education sectors.

The Impact Management Code of Conduct is a program that comprehensively defines a process to help organizations make measurable positive social and environmental impacts as well as financial gains. The Impact Principles consists of Strategic Intent, Structure, Portfolio Management, Exit Strategy and Independent Verification.

Impact investments can offer an important solution to issues such as economic inequality, clean water access and sanitation, agricultural productivity and natural resource conservation. By adopting these principles and aiming to manage project finance and Türkiye Development Fund activities through an “impact lens”, Development and Investment Bank of Türkiye has reinforced its pioneering role in this field.