Second-Party Opinion Download

Sustainalytics is of the opinion that the Akbank Sustainable Finance Framework is credible and impactful and aligns with Green Bond Principles (GBP) 2018, Social Bond Principles (SBP) 2020, Sustainability Bond Guidelines (SBG) 2018, and Green Loan Principles (GLP) 2020. This assessment is based on the following:

USE OF PROCEEDS

The eligible categories for the use of proceeds – (i) Energy Efficiency, (ii) Green Buildings, (iii) Sustainable Water and Wastewater Management, (iv) Renewable Energy, (v) Environmentally Sustainable Management of Natural Resources, (vi) Clean Transportation, (vii) Pollution Prevention and Control, (viii) Ecoefficient and/or Circular Economy Adapted Products, Production Technologies and Processes, (ix) Employment Generation, and Programs Designed to Prevent and/or Alleviate Unemployment Stemming from Socioeconomic Crises, including through the Potential Effect of SME Financing and Microfinance, (x) Access to Essential Services, (xi) Affordable Housing – are aligned with those recognized by the GBP, SBP, and GLP. Sustainalytics considers that the eligible categories will lead to positive environmental or social impacts and advance the UN Sustainable Development Goals, specifically SDG 3, 4, 6, 7, 8, 9, 10, 11, 12 and 15.

PROJECT EVALUATION/SELECTION

Akbank’s internal process in evaluating and selecting projects is managed by a Sustainable Finance Preliminary Committee (“SFPC”). The SFPC consists of members from various departments and it will review all proposed allocations for alignment with the eligibility criteria in the Framework and remove projects deemed no longer eligible. Sustainalytics considers the project selection process in line with market practice.

MANAGEMENT OF PROCEEDS

The SFPC is responsible for management of proceeds. The proceeds will be managed in a portfolio approach. Pending full allocation, the unallocated proceeds will be temporarily held in cash, cash equivalent, and/or other liquid marketable instruments. Akbank plans to allocate the proceeds within 36 months. This is in line with market practice.

REPORTING

Akbank intends to provide annual allocation and impact reporting on its website on an annual basis until full allocation. Where feasible, through allocation reporting, Akbank will provide information on total amount of proceeds allocated to eligible projects, total amount allocated to each project category, share of financing and refinancing, and amount of remaining unallocated proceeds. In addition, Akbank will report on relevant environmental and social impact metrics, to be made at least at the category level, and subject to the availability of data. This is in line with market practice.