Environmental Sustainability Analysis of Turkish Banks Using Mathematical Programming Based Framework


Mutlu H., Dursun Karahüseyin M., Göker Mutlu N.

IAC-MEM 2025, Praha, Czech Republic, 14 - 15 December 2025, pp.43-51, (Full Text)

  • Publication Type: Conference Paper / Full Text
  • City: Praha
  • Country: Czech Republic
  • Page Numbers: pp.43-51
  • Galatasaray University Affiliated: Yes

Abstract

The increasing importance of Environmental, Social, and Governance (ESG) factors in the financial sector has placed greater emphasis on assessing banks’ sustainability performance, particularly with respect to environmental dimensions. This study aims to provide a comparative analysis of banks by evaluating their performance scores on environmental sustainability criteria against their closest competitors. Given the qualitative nature of the data related to environmental factors, triangular fuzzy numbers were employed to capture the subjective assessments of the decision-makers regarding each bank’s performance. To objectively determine the relative importance degree of the criteria, a decision support model based on the common-weight fuzzy data envelopment analysis (DEA) is utilized. Unlike traditional approaches, this method does not rely on subjective weight assignment; instead, it incorporates criterion weights as decision variables within a mathematical programming framework. By solving the DEA-based model, performance scores for each bank are obtained, enabling an objective ranking within the context of environmental sustainability. The results not only highlight the relative competitive positioning of banks but also identify critical environmental criteria that should be prioritized for further improvement. Consequently, this study contributes to the literature by presenting a rigorous, comparative, and data-driven framework for analysing banks’ environmental sustainability performance within the broader ESG perspective.