We are pleased to announce that Garanti BBVA International has received the "Best Sustainability Linked Loan in Scope 3" award at the Global Sustainable Finance Awards 2024 by The Digital Banker. This recognition marks an important milestone in our commitment to sustainable finance and environmental stewardship.
This distinction highlights our $50 million sustainability-linked loan with a leading player in the global tire reinforcement market. This initiative emphasizes the reduction of Scope 3 emissions from suppliers - a critical but often overlooked aspect of sustainable business practices. Our loan structure incorporates globally recognized standards set by the Science-Based Targets Initiative (SBTi), ensuring rigorous pursuit of environmental goals.
The loan's innovative pricing adjustment mechanism is based on three key performance indicators:
- Annual reduction of GHG emissions (Scope 1 and 2)
- Percentage of targeted suppliers with SBTi-aligned emission reduction targets (Scope 3)
- Annual increase in health and safety training hours for employees
These indicators align with the United Nations’ Sustainable Development Goals, particularly focusing on combatting climate change (SDG 13) and promoting sustainable economic growth and decent work (SDG 8). The sustainability-linked loan with our client directly contributes to minimizing greenhouse gas emissions and reducing the carbon footprint of all stakeholders. By addressing Scope 3 emissions, we align with the ambitious goals of the SBTi, driving emissions reductions in line with the Paris Agreement's objectives. In adherence to best practices, GBI ensures continuity and traceability in the selection of KPIs, with a commitment to independent verification and benchmarking against external references. This steadfast dedication to transparency and accountability underscores GBI's position as a trailblazer in sustainable finance.
During the award acceptance speech, our Corporate Banking Executive Director Osman Barutcu emphasized: "At GBI, we recognize the urgent need to address environmental and social challenges through innovative sustainable finance solutions. Our $50 million loan underscores our proactive approach to reducing greenhouse gas emissions, particularly Scope 3, from suppliers. GBI is dedicated to improving the value chain by focusing on supplier emissions and promoting sustainable finance."
Through our financing mechanism, we incentivize clients to manage their direct environmental impact and influence their supply chains to adopt emission reduction targets, contributing to a more sustainable future. This award underscores our dedication to managing our direct environmental impact and influencing our entire supply chain towards a more sustainable future. We are proud to be a part of sustainable finance journey, demonstrating that profitability and environmental responsibility can coexist.
