PASHA BANK ANNUAL REPOT 2024

Since its establishment, PASHA Bank has consistently supported corporate social responsibility projects and implemented a waste management system that benefits the environment. As part of its sustainability efforts and under the motto #Birliktemümkün, the Green Office (Next Generation Sustainable Transformation) Program has been continued in 2024, achieving its set goals and raising awareness. Initiatives to reduce the ecological footprint and create a more livable environment were launched. PASHA Bank’s “Green Office” logo and diploma, awarded by WWF in 2023, were renewed for 2024. Additionally, within the scope of the Green Office Transformation Program, the Bank organized various training sessions for employees, including Basic Sustainability Training, Environmental and Social Risk Management Training for relevant departments, Carbon Footprint and Water Footprint training, and an Advanced Paper Recycling Workshop. A dedicated section for employees to submit their Green Suggestions was created within the Green Office page on the Bank’s internal communication platform, “Portal”, enabling the collection of feedback and ideas related to the Green Office initiative. As part of the newly launched Sustainability Project launched in 2024, a gap analysis was conducted on the Bank’s Sustainability Management System. This initiative defined the Sustainability Governance Structure, Sustainability Vision, SDGs, and the Environmental and Social Risk Management Process. Furthermore, policies and regulations related to sustainability, environmental, and social responsibility were approved and published on the corporate website. SUSTAINABILITY Key highlights of sustainability initiatives in 2024 • A Sustainability Governance System was established. • In line with the main strategy set by the Board of Directors, a Sustainability Committee was established to define sustainability strategies and goals, integrate environmental, social, and economic aspects into all of the Bank’s operations, and monitor sustainability performance. The Sustainability Committee is chaired by the Bank’s Board Member and CEO. • The Bank’s current position and activities related to sustainability were analyzed as a first step. Through a set of analyses conducted with internal and external stakeholders, material topics were identified within the scope of the Sustainable Development Goals. • The PASHA Bank Sustainability, Environment, and Social Responsibility Policy and the Environmental And Social Risk Management Policy In Credit Processes, including the List of Non-Financed Activities, were developed and implemented. • A methodology was adopted to ensure that all activities are conducted within the framework of the Sustainability Governance System (SGS), supported by the procedures published in 2024. • Environmental and social risks associated with financed loans and activities were integrated into the lending processes. An Environmental and Social Risk Assessment process was implemented for all loans exceeding USD 5 million. • Efforts to reduce the Bank’s direct environmental impact continued. In this context, the International Renewable Energy Certificate (I-REC) was obtained. This certificate demonstrates PASHA Bank’s commitment to environmental responsibility through the use of electricity generated from renewable energy sources. • The Business Council for Sustainable Development Türkiye (BCSD Türkiye), established in 2004 by 13 private sector representatives, is a business association that accepts merely corporate memberships. In 2024, PASHA Bank Türkiye became an official member of BCSD Türkiye, emphasizing its commitment to sustainability efforts and fostering collaboration. • Studies to calculate our carbon footprint have been initiated. • An infrastructure aligned with the waste management system has been established, and an application for the Zero Waste Certificate has been submitted. • Preparations for the development of PASHA Bank’s first sustainability report have been initiated. 49 General Information