Sustainability Governance and Organizational Structure

Operating Principles of the Ziraat Katılım Sustainability Committee

The Sustainability Committee, chaired by the General Manager, sets and reviews the goals and material topics and takes the necessary decisions. The Committee is also responsible for monitoring the impact of environmental and social activities, ensuring the compliance of projects, and monitoring other material topics determined within the scope of the Sustainability Management System.
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The Committee, which meets twice a year or upon the call of the Committee Chairman, has decided to convene 4 times a year as of 2025. The resolutions are rendered by the majority of votes at the Committee. In case of equal number of votes, the Chairman’s vote shall be decisive.
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At Ziraat Katılım, units are assigned as required to work on strategic projects. When necessary, relevant department heads are invited to the Committee meetings.
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Ziraat Katılım will require compliance with the strategies and criteria outlined by the Sustainability Committee in all projects exceeding certain limits.

Members of the Sustainability Committee

• Member of the Board

• General Manager (Chairman)

• Executive Vice Presidents

• Group Presidents

• Head of Strategy Planning Department (Sustainability Coordinator and Committee Secretariat)

• Head of Corporate Communications Department

• Head of International Banking Department

• Head of Project Finance and Financial Partnerships

In 2024, it was decided to include a Board Member other than the General Manager in the Committee in order to increase representation in the Committee and to ensure that the Board of Directors closely follows the work carried out in the Committee. In 2024, the Head of International Banking Department and the Head of Project Finance and Financial Partnerships Department were included in the Committee.

Sustainability Committee’s Duties and Authorities

The Ziraat Katılım Sustainability Committee serves as the highest-level body responsible for establishing the Bank’s sustainability goals and material topics. The duties and authorities of the Committee are as follows:

• Ensuring the coordination of the business plans and the operational tasks within the scope of the Bank’s sustainability strategy, vision, and goals,

• Developing the Sustainability Policy and complementary policies and updating them as required, ensuring integration into all business processes,

• Managing the potential environmental, social, and economic risks and opportunities that can arise within the scope of financed projects and other loans,

• Tracking national and international legislation and standard approaches concerning environmental and social risks, which are material in terms of Bank’s crediting process,

• Identifying the areas and institutions that the Bank will collaborate with in this context to expand the Bank’s sustainability network,

• Adopting sustainability-oriented initiatives within the Bank and supporting capacity development,

• Developing social responsibility projects,

• Monitoring and integrating the Bank’s studies on banking products and processes that support sustainable development,

• Managing direct and indirect environmental and social impacts, closely monitoring the endeavors to mitigate these impacts; managing the potential risks that can have adverse impact on the reputation of Ziraat Katılım,

• Ensuring communication of sustainability initiatives to be conducted within the Bank,

• Defining the duties, authorities, and responsibilities of the sustainability coordinator and additional sub-working groups to be established,

• Providing assessment of sustainability-oriented measurements and reporting, review, and approval of the sustainability-related section of the activity report,

• Ensuring that all decisions taken and projects conducted within the framework of the Bank’s sustainability governance system comply with Ziraat Katılım’s other policies and relevant guidelines.

The Sustainability Committee convened twice in 2024, in July and December. The agenda of the Committee meetings included evaluations on sustainability-related sub-projects, priority issues, sustainability key performance indicators, climate strategy and risk measurement project, and environmental and social risk assessment processes in project loans.
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The coordination of the Bank’s sustainability endeavors and the secretariat of the Sustainability Committee are conducted under the Strategy Planning Department. The Head of Strategy Planning Department, a member of the Sustainability Committee, holds a sustainability expertise certificate.
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Within the scope of this duty, it carries out the following tasks:

• Coordination of committee activities,

• Formation of working groups for sustainability-oriented projects,

• Reporting, monitoring, and archiving decisions,

• Identifying the necessary actions in accordance with the Committee’s decisions, tracking realizations and potential deviations and

• Reporting to the relevant units through the committee.

Duties of the Ziraat Katılım Sustainability Coordination Office

• Monitoring all sustainability initiatives within the Bank and providing reports to the Committee,

• Ensuring the coordination of Sustainability working groups,

• Managing consultancy services to be received within the scope of sustainability, projects, and sub-projects,

• Engaging in the activities conducted by the BRSA, the Participation Banks Association of Türkiye, the Bank Association of Türkiye, etc., within the scope of sustainability and transferring information to the relevant business units and working groups,

• Executing actions that are not followed in the working groups and ensuring their integration into the Bank’s business processes.

Sustainability Working Groups

6 working groups in different fields were established under the Sustainability Coordination Office. The Strategy Planning and Sustainability Service, which reports to the Strategy Planning Department, participates in all working groups, and personnel from 26 different services of the Bank take part in the working groups.
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The competencies required for the relevant project are incorporated into these working groups, and when necessary, consultancy and similar services are received from external resources and best practices are utilized. The number and focus areas of the working groups, which have an important place in the sustainability structure of Ziraat Katılım, may vary according to the pertinent sustainability agenda and the Bank’s strategies.

Tracking Mechanism for Sustainability Risks and Opportunities

The Ziraat Katılım Sustainability Committee is responsible for planning the goals for risks and opportunities related to sustainability and monitoring the progress of the work carried out on material issues.
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In addition, audits regarding risks and opportunities are put on the agenda and evaluated by the Sustainability Corporate Governance working group. The Audit Board and Internal Control Departments are informed in order to integrate the issues on the agenda of the Sustainability Corporate Governance working group into the Bank’s internal audit plans. Assessed issues and progress on sustainability activities are presented to the Sustainability Committee.
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Sustainability-related risks and opportunities are communicated to the Bank’s Senior Management and Committee members at the Sustainability Committee meetings.