Research Article

Climate-Related Financial Disclosures: The Case of Commercial Banks in Türkiye

Volume: 4 Number: 1 June 26, 2025
International Journal of Current Social Science Cover
International Journal of Current Social Science
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Climate-Related Financial Disclosures: The Case of Commercial Banks in Türkiye

Abstract

This article evaluates climate-related financial disclosures of the banking sector in Türkiye in line with the recent developments in sustainability reporting standards. Our article is the first study to score banks' climate change reports in Türkiye using the Task Force on Climate-related Financial Disclosures (TCFD) criteria. Climate change poses significant risks and opportunities in the financial sector, and the scoring measures banks' awareness of this issue. The scoring is done manually using 2021 and 2023 data from 10 commercial banks. The findings are compared with the Carbon Disclosure Project (CDP) scores and banks' financial indicators. The scoring made with TCFD criteria is observed to have a strong and positive correlation with CDP scores. We also examine whether banks' capacity to manage climate change risks plays a decisive role on financial performance indicators. Although the financial sector indirectly causes carbon emissions, the preparation and evaluation of these reports are important for both the financial health and reputation of banks and the reduction of carbon emissions. A positive but weak relationship is found between the calculated TCFD scores and the banks' financial performance indicators. Sustainability scores of banks in Türkiye regarding climate change have not yet been found to have a significant impact on their financial performance, according to current data.

Keywords

References

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  4. Friedrich, T. J., Velte, P., & Wulf, I. (2022). Corporate climate reporting of European banks: Are these institutions compliant with climate issues? Business Strategy and the Environment, 32(6), 2817–2834. https://doi.org/10.1002/bse.3272
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  6. Task Force on Climate-related Financial Disclosures (TCFD) (2024). About the TCFD. Retrieved August 14, 2024, from https://www.fsb-tcfd.org/about/
  7. Türkiye Bankalar Birliği (2021). Bankalarımız 2021. Retrieved from https://www.tbb.org.tr/Content/Upload/Dokuman/8850/Bankalarimiz_2021.pdf
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Details

Primary Language

English

Subjects

Panel Data Analysis , Econometrics (Other) , Ecological Economics , Green Economy

Journal Section

Research Article

Authors

Publication Date

June 26, 2025

Submission Date

May 15, 2025

Acceptance Date

June 16, 2025

Published in Issue

Year 2025 Volume: 4 Number: 1

IZ

https://izlik.org/JA49HG75NC

Cite

RIS / Bibtex
APA
Ulu, T. B., & Başçı, E. (2025). Climate-Related Financial Disclosures: The Case of Commercial Banks in Türkiye. Uluslararası Güncel Sosyal Bilimler Dergisi, 4(1), 45-53. https://izlik.org/JA49HG75NC

ISSN: 2980-1540
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