As environmental and social responsibilities gain increasing importance in the economy, financing models are also evolving. While financial institutions prioritize sustainable finance, companies are striving to adapt to this process through green bonds and international funds. Sustainable Finance Specialist Özlem Yakut emphasized that financial institutions in Türkiye placesignificant importance on the sustainable finance framework and have positioned their activities in this area at the top of their agendas.
In today’s business world, financial decisions are no longer limited to economic returns alone. As environmental and social impacts gain increasing importance in the global economy, sustainable finance is becoming a new standard. Unlike traditional financing, sustainable finance considers not only the profitability of investments but also their ecological and social benefits. Spanning a wide range of impact areas—from combating climate change to green transformation, from gender equality to social responsibility projects—this financing model enables businesses to move toward the future with greater stability. We conducted a comprehensive assessment with Sustainable Finance Specialist Özlem Yakut on how the business world is adapting to this transformation, Türkiye’s position in sustainable finance, and the developments expected in the future.
- What is sustainable finance, why is it important, and how does it differ from traditional finance?
Sustainable finance can be defined as a financing method that, in addition to assessing credit repayment ability, also evaluates the environmental and social aspects of investments and activities. Unlike traditional finance, sustainable finance expects not only the ability to repay credit but also measurable environmental and social benefits from investments and activities. Areas such as combating climate change, preserving ecological balance, transitioning to a green economy, green transformation, and gender equality fall within the scope of sustainable finance.
- What is the global trend in businesses’ shift toward sustainable finance?
Businesses’ interest in sustainable finance is rapidly increasing worldwide due to factors such as environmental and social responsibilities, changing consumer behaviors, investor expectations, regulatory developments, corporate social responsibility, growing interest from financiers, and the advancement of financial instruments in this field.
“The shift toward sustainable finance in Türkiye is rapidly increasing in parallel with global trends”
What is the status of sustainable finance in Türkiye? Could you compare it to the global situation?
Sustainable finance is one of the fastest-growing sectors in Türkiye. With regulations in national and international legislation, sustainability targets set by global brands for their suppliers, and the financial sector prioritizing this area, awareness and the shift toward sustainable finance in Türkiye are rapidly increasing in parallel with global trends.
“Companies can borrow from international markets through bonds/green bonds”
- What are the tools of sustainable finance? Which financial supports can companies benefit from?
Depending on the company’s activities and the amount of financing needed, companies can utilize sustainable finance from commercial banks or leasing institutions. Based on the size of the company and investment, firms can also borrow directly from international financial institutions or use the option to borrow from international markets through sustainable bonds/green bonds.
“Companies should make decisions with a more environmental perspective”
- What should a company do to access sustainable finance?
Companies should make decisions with a more environmental perspective regarding their activities and investments. One of the initial steps could be fulfilling the requirements to obtain sustainability certifications for the sustainability certifications offered in their areas of activity. Additionally, they can aim to maximize the environmental benefit of the products they produce and sell; they can make investments to achieve this and develop sales and marketing strategies. They can aim to achieve more efficient production according to market standards and maintain the highest level of efficiency in their production processes. The financing needed for all these activities and necessary investments will fall under the scope of sustainable finance.
“The share of green finance in the balance sheets of financial institutions will increase rapidly”
- How will the sustainable finance ecosystem be shaped in the future?
We are going through a process where finance is being reshaped globally. Along with this, environmental and social assessments will become more significant in accessing finance. The share of green finance in the balance sheets of financial institutions will increase rapidly, and as a result, many new financing products and mechanisms targeting all segments will emerge. The widespread adoption of carbon pricing and emissions trading will be another factor triggering the market transformation. With increasing awareness, market demand will shift towards sustainable products, and for companies, the transition to a sustainable economy will become a necessity, with financing needs shifting to this area.
“Financial institutions are setting concrete targets for sustainable finance volume”
- How do financial institutions in Türkiye approach sustainable finance?
Financial institutions in Türkiye place significant importance on the sustainable finance framework and have placed their activities in this area at the top of their agendas. The volume targets and programs of international financial institutions for sustainable finance are among the key factors driving the financial sector’s shift toward sustainable finance. The process is also accelerated by the shaping of national regulations and the preparation of guidelines in this area. Recently, we have been pleased to observe that financial institutions are frequently issuing sustainable bonds. Many financial institutions are setting concrete volumetric targets for sustainable finance, making system investments, and developing their corporate capacity. Financing requests are also being directed to the sustainability area as much as possible with more attractive financing conditions.
