Sustainability Management System

Sustainability is one of the strategic areas to which Yapı Kredi attaches importance. Yapı Kredi's corporate governance strategy addresses environmental, social, and governance (ESG) factors. All the Bank’s activities are conducted in compliance with the sustainability principles through the Sustainability Management System (SMS) and the governance structure is also shaped according to these principles. Yapı Kredi carries out its sustainability activities holistically in line with the relevant policies and procedures.

The SMS ensures that sustainability is incorporated into the decision-making mechanisms and the relevant roles and responsibilities are defined. The environmental impact of the Bank's operational and lending activities is managed as part of the SMS, and environmental management is reported annually. Yapı Kredi also provides training on sustainability to ensure that it is embraced by its employees.

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The Sustainability Committee, the highest governing body of the SMS, is responsible for integrating sustainability into business processes and for monitoring sustainability performance. The Committee reports annually to the Executive Committee and the Board of Directors.

The Sustainability Unit, positioned under the Corporate Communication Management, is responsible for monitoring Yapı Kredi's sustainability targets and performances, coordinating the working groups reporting to the Sustainability Committee, submitting suggestions on global sustainability trends and agendas to the Committee and the working groups, ensuring data consolidation with regards to the sustainability topics, and conducting sustainability communications. The working groups, each of which is sponsored by a member of the Sustainability Committee, operate to implement the decisions taken by the Committee.