June | Sustainability Bulletin
- EPİAŞ Conducts First Voluntary Carbon Credit Trading
Energy Markets Operation Co. (EPİAŞ) announced the launch of its new platform for facilitating the trading of voluntary carbon credits.
EPİAŞ General Manager Taha Meli Arvas stated, “Our new software will facilitate the trading of carbon credits generated from voluntary carbon projects. These credits are certified by international organizations such as Gold Standard and VCS (Verified Carbon Standard). Companies typically purchase these credits to offset their carbon footprints, serving a complementary function within the Emissions Trading System. Today marks the first transaction on our platform, ensuring safe and effective carbon credit trading. We hope this will be beneficial for our country and industry.”
This new platform aims to facilitate carbon credit trading and contribute to environmental sustainability.
For more details; https://www.epias.com.tr/tum-duyurular/epiasta-gonullu-karbon-kredisi-alim-satimi-gerceklesti/
- World Bank and Turkey Sign $1 Billion Program Agreement to Support Renewable Energy Expansion
The World Bank and Turkey have signed a $1 billion program agreement to increase renewable energy use. According to Turkey’s National Energy Plan, the country aims to increase its solar energy installed capacity to 52.9 gigawatts by 2035. The program will focus on establishing and expanding the distributed solar energy market and piloting a battery storage program.
The program will be implemented in two phases by the Development and Investment Bank of Turkey (TKYB) and the Industrial Development Bank of Turkey (TSKB). In the first phase, direct financing will be provided to private sector investors developing rooftop and ground-mounted solar energy systems for commercial and industrial customers. In the second phase, support will be extended to local commercial banks and leasing companies.
Humberto Lopez, World Bank Country Director for Turkey, stated, “Turkey has embarked on one of the most ambitious energy transformation programs. The World Bank is pleased to support Turkey in doubling its renewable energy capacity by 2035, enhancing energy security, reducing energy costs for consumers, and combating climate change.”
The World Bank financing includes a €600 million loan from the International Bank for Reconstruction and Development (IBRD), a $30 million loan from the Clean Technology Fund (CTF), and a $3 million grant from the Energy Sector Management Assistance Program (ESMAP). The program is also expected to attract $259 million in private capital.
For more details; https://www.aa.com.tr/tr/ekonomi/dunya-bankasi-ve-turkiye-yenilenebilir-enerjide-1-milyar-dolarlik-program-icin-anlasma-imzaladi/3221506
- QNB Finansbank Issues $500 Million Sustainable Eurobond
QNB Finansbank has successfully issued its first $500 million sustainable Eurobond. The five-year issuance received over 3.5 times the demand from foreign investors, with a yield of 7.375% and a coupon rate of 7.250%.
This issuance marks QNB Finansbank as the Turkish bank with the closest yield to a five-year US Treasury bond since 2015 and the lowest borrowing rate since September 2021. According to QNB Finansbank’s CEO, the proceeds from this Eurobond will be directed towards green and social projects, such as renewable energy, clean transportation, and access to essential services. CEO Ömür Tan stated, “Our first sustainable Eurobond issuance will provide resources for projects supporting the transition to a low-carbon economy and social development. This transaction is a significant indicator of the confidence in Turkey’s economy and QNB Finansbank in global markets.”
- BIM Publishes Its First Integrated Annual Report Including Financial Results and ESG Impacts for 2023
BIM has published its first integrated annual report, which includes financial results and environmental, social, and governance (ESG) impacts for 2023. CEO Haluk Dortluoğlu announced the company’s goal to increase sustainability-focused investments to 2 billion TL in 2024. In 2023, BIM continued its efforts to mitigate environmental impacts due to climate crisis risks, achieving significant progress in renewable energy, water management, packaging, and waste management.
Dortluoğlu emphasized the critical importance of achieving sustainability goals with limited natural resources. BIM invested 1 billion TL in sustainability-focused projects in 2023 and plans to double this amount in 2024. The company continues to enhance energy efficiency and shift towards renewable energy sources to reduce greenhouse gas emissions.
BIM opened 972 new stores in Turkey, Morocco, and Egypt in 2023, increasing its total revenue to 328 billion TL. The company also progressed in sustainability efforts, covering 4% of its electricity consumption with solar energy projects and aiming to increase this to 25% by 2025. Additionally, BIM achieved 21 million TL in savings through packaging and waste management initiatives.
- Türk Telekom Issues $500 Million Sustainable Eurobond
Türk Telekom announced that it has become the first company outside the financial sector to issue a sustainable Eurobond, aligned with the United Nations Sustainable Development Goals.
Under its Sustainable Finance Framework, Türk Telekom has accessed green, social, or sustainable bonds/loans through the sustainable finance market, successfully issuing its first $500 million sustainable Eurobond. The issuance attracted significant interest from investors, with pre-issuance meetings held with over 55 investors from Europe, Asia, and America. Demand from 177 institutional funds exceeded the issuance amount by approximately five times, with significant interest from ESG-focused funds.
Kaan Aktan, Türk Telekom’s Deputy General Manager for Finance, stated, “We have taken a significant milestone in advancing our sustainability approach, creating a financing strategy aligned with the UN Sustainable Development Goals. The funds obtained will primarily finance investments in renewable energy and energy efficiency projects. Our company’s achievements in sustainability are recognized by global indices and institutions, and our environmentally friendly technology investments will continue to strengthen in line with our sustainability goals.”
For more details; https://www.aa.com.tr/tr/ekonomi/turk-telekomdan-500-milyon-dolarlik-surdurulebilir-eurobond-ihraci/3219196
- 2023 European Climate Report Released!
The 2023 European State of the Climate (ESOTC 2023) report, prepared by the Copernicus Climate Change Service (C3S) and the World Meteorological Organization (WMO), has been published. This report, aimed at researchers, journalists, policymakers, and professionals in climate-sensitive sectors, provides a comprehensive analysis of climate variables, definitions, and a discussion on climate policies and actions.
The report utilizes data from various organizations and institutions, offering projections on key global climate variables from the previous year. It details the factors shaping the climate and highlights significant climate-related events. The report also references the “Global Climate Highlights” by the Copernicus Climate Change Service, noting 2022 as the hottest year on record and evaluating the impact of these record temperatures on different regions.
For Turkey, the 2023 European Climate Report indicates that the western regions experienced an unusually wet period, with record rainfall and flooding in September. It also reports that eight people lost their lives due to Hurricane Daniel in September.
For more details; https://iklim.gov.tr/2023-avrupa-iklim-raporu-yayinlandi-haber-4262
- European Commission Approves €120 Million Spanish Regulation under the Green Deal Industrial Plan
The European Commission has approved a €120 million Spanish regulation under the Green Deal Industrial Plan. This significant step aims to accelerate the transition to a green economy and reduce dependency on critical sectors within the industry.
The regulation targets companies producing raw materials for green energy equipment such as batteries, solar panels, cells, heat pumps, electrolyzers, wind turbines, and carbon capture and storage equipment. It intends to promote the production of crucial equipment for green transformation and the transition to a net-zero economy. The regulation will be effective until December 31, 2025, contributing to the efficient implementation of the Green Deal Industrial Plan.
For more details; https://ec.europa.eu/commission/presscorner/detail/en/mex_24_2601
- EU and Australia Sign Memorandum of Understanding on Critical and Strategic Sustainable Minerals
In May, the European Union and Australia signed a memorandum of understanding on critical and strategic sustainable minerals. This agreement aims to secure the necessary infrastructure and materials for the EU’s green and digital transformation while supporting the local mining sector’s development in Australia. The memorandum covers processes such as mining exploration, extraction, processing, refining, recycling, and waste management, focusing on reducing environmental impacts and benefiting local communities.
The cooperation encompasses a wide range of activities, from integrating sustainable raw material value chains to research and innovation, reducing environmental and climate footprints, and ensuring high standards and worker conditions. Besides supporting the creation of sustainable critical mineral value chains, the memorandum also focuses on sectors like defense and aviation within the context of green and digital transformation.
For more details; https://ec.europa.eu/commission/presscorner/detail/en/ip_24_2904
- “Climate Projections Awareness Conference” Held in Collaboration with the Ministry of Environment, Urbanization, and Climate Change and the UNDP
The Ministry of Environment, Urbanization, and Climate Change, Climate Change Department, and the United Nations Development Programme (UNDP) organized the “Climate Projections Awareness Conference” in Ankara. The event was held under the “EU Partnership for Local Climate Action in Turkey” project, funded by the European Union.
In his opening speech, Prof. Dr. Halil Hasar, Head of the Climate Change Department, emphasized the importance of identifying local climate risks and sectoral hazards in combating the impacts of climate change. He stated that the project aims to update Turkey’s climate projections under the “EU Partnership for Local Climate Action in Turkey” initiative.
The conference shared details of the efforts to update Turkey’s climate projections, with Prof. Dr. Halil Hasar highlighting the use of dynamic downscaling to create high-resolution climate projections, providing a scientific basis for local climate action plans. The projections will be conducted using TÜBİTAK’s MareNostrum-5 supercomputer, offering significant contributions to public institutions, local governments, and academia. At the conference’s conclusion, a protocol was signed between the Climate Change Department and TÜBİTAK to operate a regional climate model until 2100.
For more details; https://iklim.gov.tr/iklim-projeksiyonlari-farkindalik-artirma-konferansi-ankara-da-gerceklestirildi-haber-4279
- European Council Announces Adoption of the Corporate Sustainability Due Diligence Directive (CSDDD)
The Corporate Sustainability Due Diligence Directive (CSDDD), which imposes obligations on companies to address adverse human rights and environmental impacts throughout their value chains, was initially proposed by the European Commission in February 2022. On May 24, 2024, the European Council announced that the directive had been approved by member states.
Despite reaching an agreement on the directive in December 2023, the European Council’s vote was delayed in January due to concerns raised by Germany about the bureaucratic and potential legal impacts on companies. Italy later withdrew its support, further casting doubt on the directive’s adoption. Eventually, revisions were made to limit the scope of the new rules to the largest companies in the EU, as requested by France.
One of the main changes to the directive was significantly reducing the number of companies under its scope; the employee threshold was raised from 500 to 1,000, and the revenue threshold from €150 million to €450 million. These new limits reduced the number of companies affected by the CSDDD by approximately two-thirds.
The directive will also be implemented in stages, starting in 2027 with companies having over 5,000 employees and revenues exceeding €1.5 billion, followed in 2028 by companies with over 3,000 employees and revenues exceeding €900 million, and by 2029, it will apply to all other companies.
*The CSDDD outlines obligations for companies to identify, assess, prevent, mitigate, address, and remedy adverse impacts on people and the planet within their supply chains and related activities such as distribution and recycling. It also requires companies to adopt transition plans to align their operations with the Paris Agreement’s goal of limiting global warming to 1.5°C. Member states are granted authority to investigate and penalize non-compliant firms.
For more details; https://www.esgtoday.com/eu-adopts-environmental-human-rights-sustainability-due-diligence-law/
- UN Global Compact Announces CMO Think Lab Project to Promote Sustainable Growth
Brand managers, communicators, and chief marketing officers play a crucial role in shaping consumer perceptions and driving sustainable growth and impact through behavior change. However, the Sustainable Marketing 2030 report identifies that a significant portion of this group lacks the knowledge to drive growth towards a sustainable future.
To harness the global potential of marketing in developing and activating sustainability strategies, the UN Global Compact, in collaboration with the Institute for Real Growth (IRG), is bringing together a group of marketing leaders as part of the first CMO Think Lab. This group will offer recommendations on the challenges, opportunities, and needs of global marketing leaders through interactive workshops, consultations, webinars, and other activities. The aim is to empower these leaders with the knowledge and tools necessary to achieve sustainable growth and positive impact, with the outputs of the program shared at global, regional, and local levels to aid in the achievement of the Sustainable Development Goals (SDGs).
For more details; https://unglobalcompact.org/take-action/think-labs/chief-marketing-officer