Environment Investment Fund, Is Bankasi & TEMA (4)

A fund for environment
Friday, June 27, 2008
ALP SÜER
ISTANBUL – Referans

Turkey's first environmental fund, supported by the country's largest publicly traded bank, has invested in six companies that conduct environmentally sensitive activities.

Environmental problems, such as global warming and droughts in recent periods have demonstrated the importance of environmental consciousness, said Meltem Kökden, manager of İşbank Securities.

The threat has encouraged the bank to work for the future jointly with the Turkish Foundation for Reforestation, the Protection of Natural Habitats and the Combating of Soil Erosion, or TEMA, under the umbrella of the İşbank Type B Variable TEMA Environmental Fund.

The fund's initial portfolio includes TSKB, the first and largest privately owned investment and development bank in Turkey; Zorlu Energy; Turkish Automotive Factory Inc., or TOFAŞ; Aygaz, the first Koç Group Company in the Turkey energy sector; pharmaceutical company Eczacı; and Arçelik, Turkey's largest manufacturer of household appliances.

The number of companies included in the fund, which is aimed at supporting companies that conduct environmentally sensitive activities, is set to increase in the upcoming period.

The criteria for the fund

Companies that have not been penalized for environmental violations in the recent past and that are not involved in weapon and tobacco production or gold exploration activities are considered within the fund's investment strategy, said Kökden.

Next, the companies in the investment-grade pool are evaluated based on their performances on environmental issues, Kökden said. ISO14001 and its equivalent environmental management system certificates are taken into consideration, as well as the integration of environmental responsibility into production, according to Kökden's statement.

İşbank's environmental fund will support the social initiatives of investors to protect the environment, said Kökden. “A long-term and sustainable resource will be created for environmental projects.” İşbank will transfer half of the revenues attained from the fund to the TEMA Foundation, to be used for environmental projects. The fund is very attractive to investors, as it is possible to invest in the fund for a minimum of only YTL 10. This way, small investors can participate in the fund and contribute to the environment with regular investments.

Social responsibility funds are quite widespread in the United States and the European Union, amounting to $201.8 billion in the U.S. and $75.4 billion in Europe. The Calvert and Green Century Funds constitute the largest fund families in the United States.

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