Material topics have been evaluated in line with current trends in the national and international banking and financial sector, as well as recent developments in sustainability reporting practices.
Sustainability Journey
Material Topics and Materiality Matrix
Methodological Approach
Ziraat Katilim conducted its materiality assessment for the first time in 2023, taking into account the Bank's short-, medium- and long-term strategic objectives, the 2022'2025 Strategic Plan, its business model and the developments observed during the reporting period. The materiality assessment was updated in 2024 in line with evolving conditions and updated evaluations. In 2025, the assessment was reviewed once again and revised in response to changing conditions and emerging needs. The priorities identified as an output of the stakeholder analysis form the main framework of the Ziraat Katilim Integrated Annual Report.
Within the scope of the materiality assessment, an up-to-date and comprehensive list of topics was established. In determining the material topics, trends in national and international banking and financial sectors, global megatrends and developments in sustainability reporting were examined. Potential topic areas were evaluated considering the Bank's strategic priorities and stakeholder expectations, and the identified material topics were finalized based on the opinions of executive management.
The reassessment and update conducted in 2025 took into account sectoral developments and key sustainability reference frameworks. In this context, the following frameworks were considered: S&P ESG Score Criteria Headings (S&P), ESG Risk Atlas - Banking (S&P), SASB Sector Standards (SASB), MSCI Materiality Map - Commercial Banking (MSCI), World Economic Forum Stakeholder Capitalism (WEF), World Economic Forum Global Risks Report 2025 (WEF), United Nations Global Compact (UNGC), WBCSD Vision 2050 (WBCSD), GRI Standards (GRI) and the United Nations Sustainable Development Goals (SDGs).
As a result of these evaluations, a sustainability and ESG-focused materiality matrix was developed. The importance of sustainability issues for stakeholders and their impact on the Bank's operations were assessed together. Ziraat Katilim categorized its material topics as "Very High Priority" "High Priority" and "Priority" The materiality matrix was developed based on the evaluation of 14 identified priority topics according to the criteria "Importance for Stakeholders' and "Importance for Ziraat Katilim.'
The study was coordinated by the Strategy Planning Department and the Sustainability Department Management operating under the Sustainability Coordination function. During the workshop conducted with executive management and managers of strategically significant departments, the Bank's future projections and targets were discussed. Based on the workshop outputs, the list of material topics was updated accordingly.
Very High Priority Issues with Significant Impact on Stakeholders and Ziraat Katilim's Performance
Legal Compliance and Business Ethics
Ziraat Katilim aims to build trust-based customer relationships within the framework of regulatory requirements and ethical standards, grounded in the Know Your Customer (KYC) principle. The Bank places strong emphasis on ensuring that customer transactions are conducted securely and in full compliance with applicable regulations and considers the prevention of financial crimes such as money laundering, terrorist financing, bribery and corruption as an integral part of its corporate responsibility.
Ziraat Katilim conducts all its activities in line with applicable legislation, regulatory authority guidelines and the ethical principles it has adopted. By positioning business ethics and legal compliance among the fundamental elements of its corporate governance structure, the Bank adopts a transparent, accountable and responsible approach across all business processes.
Oversight Mechanism
This priority issue is managed within the Head of Internal Systems Group under the supervision of the Audit Committee at Ziraat Katilim.
Digital Transformation and Innovation
With the increasing adoption of artificial intelligence technologies, Ziraat Katilim continues to strengthen its digital product development capabilities and technological infrastructure in line with its strategic priorities. In this context, the Bank designs end-to-end digital processes, enhances accessibility to financial products and aims to increase its competitiveness by positioning its products and services across multiple channels.
Oversight Mechanism
Priority issue is periodically monitored by the Ziraat Katilim Strategy Committee and the Information Systems Steering Committee.
Cybersecurity and Data Privacy
Ziraat Katilim adopts a proactive approach to identifying potential risks that may affect the confidentiality and security of customer and Bank data and continuously improves its system security infrastructure. In this context, the Bank aims to maintain a high-level cybersecurity infrastructure aligned with industry best practices. This approach is supported by an integrated information security management strategy, including comprehensive security policies and standards, strong security awareness and training programs, and advanced multi-layered defense systems.
Oversight Mechanism
Information security-related activities at Ziraat Katilim are carried out by the Information Security function, which operates under the supervision of the CEO. These processes are subject to oversight by the Head of Internal Systems Group and the Banking Regulation and Supervision Agency (BRSA). The related processes are also audited by Ziraat Katilim inspectors holding ISO 27001 Information Security Management System Lead Auditor certification.
Sustainable Financial Performance
Operating in line with the principles of participation banking, Ziraat Katilim demonstrates financially sound, sustainable, resilient and competitive financial performance. Maintaining the Bank's financial strength and profitability and ensuring long-term value creation are of critical importance not only for contributing to the development of the Turkish economy but also for enhancing stakeholder welfare. Strategic targets and projects defined under the focus of sustainable financial performance are addressed in alignment with sustainability and ESG perspectives.
Oversight Mechanism
Activities carried out in coordination across all units of Ziraat Katilim are periodically overseen by the Asset-Liability Committee (ALCO) and the Board of Directors. Relevant processes and outputs are also subject to internal audit, independent external audit and regulatory supervision.
Integrated Risk Management
Ziraat Katilim structures its risk management approach in accordance with the regulatory framework in force in Türkiye and evaluates global and local macroeconomic developments from a holistic perspective. The Bank prioritizes the effective management of both financial and non-financial risks and aims to adopt a proactive approach in managing climate-related risks and opportunities. In addition, risks arising from natural disasters that are not directly associated with climate change, such as earthquake risk considered within the scope of sustainability-related business continuity risks, are also evaluated under the Integrated Risk Management framework.
Oversight Mechanism
This priority issue is managed within the Head of Internal Systems Group under the supervision of the Audit Committee at Ziraat Katilim.