Garanti BBVA Asset Management Actualize a New Investment Fund in Accordance with CDP Methodology

Garanti BBVA Asset Management, Turkey’s first portfolio management firm, actualize a new investment fund in accordance with the CDP methodology. Through Garanti BBVA Climate Index Equity (TL) Fund (Equity Intense Fund), it is possible to invest in to the companies who took place in Garanti BBVA Climate Index.

In July 2021, Garanti Asset Management established Garanti BBVA Climate Index in cooperation with CDP Turkey and Borsa Istanbul, in order to fight against climate crisis and for the purpose of a more sustainable world. Garanti BBVA Climate Index, consists of the shares of companies both traded on Borsa Istanbul and demonstrate a good performance according to CDP, which rates the companies’ climate action performance. Garanti BBVA Climate Index (GBNIE) evaluates the prices and performances of the shares of the companies traded on Borsa Istanbul, which transparently declare their risks and opportunities regarding climate change, according to the CDP (Carbon Disclosure Project) methodology, and their current score is B- and above. Climate index was established in order to improve the sustainable finance market and enforce more transparency of the companies’ risks and opportunities regarding climate change. Now, Garanti BBVA Climate Index Equity (TL) Fund (Equity Intense Fund), which was established on the basis of this index, was put into practice. 

As CDP Turkey, we are extremely pleased to have helped identify a sufficient number of companies with good and very good climate performance in order to create a balanced investment fund. The founding purpose of CDP was to mediate the shift of financial capital to companies and projects resilient to climate change. Parallel to the increasing sensitivity of investors on climate risks and opportunities, the tightening of laws and regulations has highlighted investment instruments that take climate risks into account all over the world. Many companies in Turkey are among the world leaders in managing climate risks and opportunities. Research of Sabancı University Corporate Governance Forum, hosting organization of CDP Turkey, has shown that companies included in the index exhibited 'extraordinary returns' right after the Paris Agreement was approved by the parliament. There is now an investment instrument covering these companies. We hope that both institutional and individual long-term investors and especially pension fund companies will consider this fund in their portfolios. 

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