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IFC Report Finds Scope for Greater Sustainable Investment in Turkey

In Istanbul:
Basak Pamir Ülgen

Phone: (212) 385 3075


Istanbul, Turkey, March 25, 2011—IFC, a member of the World Bank Group, today published the first report measuring the amount of sustainable investment in Turkey.  The report finds that while current volumes are small, there is scope for much greater sustainable investment in the country.

The report, Sustainable Investment in Turkey, assesses current levels of sustainable investment awareness, practices, and demand.  It also identifies opportunities to increase the flow of sustainable investment funds to Turkey.  Sustainable-investment practice factors environmental sustainability, social impact, and corporate-governance risks into investment decisions.

“This report is part of IFC’s increasing efforts to promote sustainable investment,” said Dimitris Tsitsiragos, IFC Director for Middle East, North Africa, and Southern Europe.  “While the research indicates that sustainable investment remains nascent, Turkey has many strengths such as well-regulated banking and pension-fund industries, prospects for sustained growth, and a competitive product market.  These advantages will drive sustainable investment to grow in Turkey.”

IFC partnered with research firm Illac to write the report.  Additional findings include:

  • Low saving rates and the crowding effect of domestic borrowing are among a number of structural barriers that hinder the development of sustainable investment;
  • The report estimates that there is now approximately $4 billion of sustainable investment in Turkey, based on investments that somewhat consider environmental, social and governmental issues, including private equity investments.

“Leading families who own and control the majority of the assets in Turkey can either block or enable the development of sustainable investment,” said Melsa Ararat, professor at Sabanci University who led Illac’s research team.  “Their choice will be one of the determinants of the future of our societies in Turkey.”  

IFC launched a series of sustainable-investments reports initially covering the largest emerging capital markets attracting global portfolio investors—Brazil, China, and India.  Subsequent reports in the series cover Sub-Saharan Africa, the Middle East and North Africa, and Turkey. The report is available online at

About IFC

IFC, a member of the World Bank Group, is the largest global development institution focused on the private sector in developing countries. We create opportunity for people to escape poverty and improve their lives. We do so by providing financing to help businesses employ more people and supply essential services, by mobilizing capital from others, and by delivering advisory services to ensure sustainable development. In a time of global economic uncertainty, our new investments climbed to a record $18 billion in fiscal 2010. For more information, visit
About Illac

Incorporated in London in 2001, Illac is a research and advisory services firm with a social mission.  It specializes in corporate governance and sustainability issues with a focus on emerging markets, Turkey specifically.  Illac undertakes voluntary, not–for-profit projects and commercial assignments, with the objective of helping advance the governance frameworks and investment-management practices in emerging markets.  For more information, visit