ESMS Overview
Overview of Ak Lease Environmental and Social Management System
Over the years, Ak Lease has focused on financing environmentally sustainable and responsible investments. Ak Lease issued its first environmental policy in April 2011, as an integral part of its Credit Policy.
As part of its ambition to become Türkiye’s leading leasing company in sustainable finance, Ak Lease has adopted the following principles under its Environmental and Social Management System (ESMS):
- Investment projects that contribute to Türkiye’s sustainable development and have a positive impact on the environment are supported. Renewable energy investments, environmentally friendly technological projects, waste recycling investments, carbon emission reduction projects, and resource-efficiency investments are priority areas for financing.
- Environmental and social risks and impacts are assessed, categorized as per the identified risk level and projects with material adverse impact on the environment are not supported. The Exclusion List, an integral part of Ak Lease Environmental and Social Risk Management Policy, explicitly defines the investments, clients, or sectors that are ineligible for financing. Ak Lease undertakes that it will not knowingly provide financial leasing services to the institutions or companies engaged in activities that are stated on the Exclusion List, regardless of the amount.
- E&S performance monitoring is carried out through the financing period at a frequency based on the identified risk category level.
- Ak Lease requires its clients to adhere to all applicable environmental regulations and Ak Lease’s environmental and social policies, implementing corrective measures as necessary.
- Adequately trained and competent resources are assigned to deliver E&S activities in accordance with Ak Lease’s requirements and the policy requirements agreed with its lenders.
- Ak Lease encourages its customers to operate in accordance with the Ten Principles of the United Nations Global Compact.
- Ak Lease complies with all national laws and regulations concerning environmental and social issues, labor protection and occupational health and safety.
- Ak Lease supports and respects the protection of human rights and complies with all national laws and regulations, as well as international conventions and agreements, regarding illegal labor, child labor or forced labor.
- Ak Lease strives to minimize any adverse impacts that financed projects may have on disadvantaged or vulnerable groups, with particular attention to gender equality.
- Through the implementation of ESMS, Ak Lease aims to minimize the environmental impact arising from its own activities.
ESMS Governance and Documentation
Ak Lease ESMS is documented through a comprehensive set of internal policies and procedures approved by our Board of Directors (BoD) and our parent company Akbank’s Credit Committee (BoD level Executive Committee). Our ESMS is built upon the following pillars:
E&S Risks and Impact Assessment Process
Ak Lease has fully integrated Environmental and Social (E&S) risks and impact assessment and monitoring processes into the entire financing lifecycle. This assessment process aims to assign an overall risk rating to each loan proposal and to develop customized action and monitoring plans aligned with the risk category. The procedure applies to all loan proposals with a net financing amount exceeding USD 5 million. Risk levels are categorized as High (Category A), Medium (Category B) or Low (Category C). Where required under the applicable financing arrangements, Ak Lease applies the relevant lender’s E&S risk-categorization requirements. Higher risk investments may require additional documentation or mitigation measures prior to approval.
For investments or projects classified under Category A, an Environmental and Social Action Plan (ESAP) aligned with the IFC Performance Standards is required. Current Ak Lease ESMS procedures mandate the appointment of an independent external consultant to monitor the ESAP and periodically report the results to Ak Lease. For Category B projects, and for Category C projects where specific corrective actions are identified, any required action plan and monitoring are managed internally by the Ak Lease team.