As a signatory of UNEP FI Principles of Responsible Banking since 2021, AKBANK is committed to accelerate a positive global transition for people and the planet. In line with the Principles of Responsible Banking and Paris Climate Agreement, AKBANK has been operating in parallel with Sustainable Development Goals and global climate mitigation and adaptation efforts. Today marks another milestone for AKBANK as it announces its commitment to the industry-led and UN-convened Net-Zero Banking Alliance, the flagship climate initiative under UNEP FI’s Principles for Responsible Banking.
In 2022, AKBANK committed to become a Net Zero Bank by 2050. With its commitment to Net-Zero Banking Alliance (NZBA) today, AKBANK now aims to set climate-related targets for 2030 in different sectors of its loan portfolio that will set in on a pathway to achieve its 2050 goal.
AKBANK aligned its target setting methodology with Net-Zero Banking Alliance’s and Science Based Targets Initiative’s guidelines and set ambitious loan portfolio targets in parallel with the goal of limiting global warming to 1.5 degrees Celsius.
AKBANK will initially focus on decarbonizing power, cement, iron & steel and commercial real estate sectors. The Bank set interim targets for its loan portfolio based on financed emissions for these four carbon-intensive sectors, which are fully aligned with the Partnership for Carbon Accounting Financials (PCAF) methodology. The targets are aligned to the pathway set out by the International Energy Agency (IEA) ‘net zero emissions by 2050’ scenario, calculated to limit global warming to within 1.5°C.
AKBANK is targeting a reduction of 60% in emissions intensity for its on-balance sheet financed emissions for the power sector by 2030. All direct financing for power generation activities will be subject to this target. With this target, AKBANK intends to expand its efforts to finance low-carbon power generation activities. Renewable energy financing is one of AKBANK’s key lending areas. Renewable energy investments already compose 76% of its project finance energy portfolio.
AKBANK is targeting a reduction of 23.8% and 29% in emission intensity for its on-balance sheet financed emissions by 2030 for the cement and iron & steel sectors, respectively. The Bank will be focusing on decarbonizing the most carbon-intensive midstream activities to meet these targets. AKBANK also intends to decarbonize energy-intensive commercial real estate sector, with a reduction in the emissions intensity of its on-balance sheet financed emissions of 40.8% for service buildings and 49.3% for residential buildings by 2030.
AKBANK has already worked for several years to gradually align its operations with the objectives of the Paris Agreement. With this new commitment and interim sectoral reduction targets, AKBANK will enhance its efforts and support the market to accelerate a just transition towards a low-carbon economy.
Akbank has also set an interim 1.5°C-aligned target , for the decarbonisation of its operational emissions, aiming to reduce its absolute Scope 1 and Scope 2 GHG emissions by 90% by 2030.
About the Net-Zero Banking Alliance
The industry-led, UN-convened Net-Zero Banking Alliance brings together over 140 banks representing more than 40% of global banking assets, which are committed to aligning their lending and investment portfolios with net-zero emissions by 2050. Combining near-term action with accountability, this ambitious commitment sees banks setting an intermediate target for 2030 or sooner, using robust, science-based guidelines. The Alliance will reinforce, accelerate and support the implementation of decarbonisation strategies, providing an internationally coherent framework and guidelines in which to operate, supported by peer-learning from pioneering banks. It recognises the vital role of banks in supporting the global transition of the real economy to net-zero emissions.
www.unepfi.org/net-zero-banking