DECISION-SUPPORT FRAMEWORK FOR MULTIDIMENSIONAL ESG PERFORMANCE EVALUATION IN THE BANKING SECTOR

Abstract

For financial institutions, sustainable development has become a priority concern for both the investors and the sector. This manuscript suggests a holistic decision-making approach for the sustainability evaluation of deposit banks by integrating the CRISUS, MSD, and AROMAN algorithms. Building on earlier research, this research uses a multi-criteria assessment framework encompassing three main dimensions (environmental, social, and governance) and 15 indicators within the scope of sustainability. Using this introduced model, the research conducts a holistic assessment of the ESG performance of eight Turkish commercial banks. The results reveal that environmental criteria – particularly total greenhouse gas emissions, renewable energy usage rate, and green loan rate – have the strongest impact on ESG performance, and Garanti BBVA demonstrates the highest performance among the analyzed banks. In conclusion, the hybrid approach introduced in this manuscript provides a robust and reliable decision support tool for implementers and decision makers for analyzing and improving the sustainable development strategies in banking.