Inflation-Adjusted Sustainability in Banking: Analysis of Water Consumption, Carbon Emissions, and Financial Indicators in Turkish Banks

Türkçe

This study evaluates the sustainability performance of Turkish banks by analyzing water consumption, carbon emissions, and financial indicators from 2019 to 2024. Using publicly available sustainability reports, the research examines key environmental and financial metrics, including CDP scores, Scope 1-3 emissions, and inflation-adjusted financial ratios. A Cumulative Inflation Adjustment method is applied to financial data to ensure comparability across years. The findings indicate that Turkish banks have improved sustainability disclosures and increased efficiency in financial operations relative to emissions and water consumption. However, data adjusted for cumulative inflation reveal that there has not been a significant improvement in banks' sustainability policies, and in some cases, even a decline has been observed. Notably, banks that have adopted renewable energy sources have achieved substantial reductions in Scope 2 emissions, whereas financed emissions (Scope 3) remain a critical challenge. The results highlight the need for stronger ESG integration, standardized sustainability reporting, and long-term environmental risk mitigation strategies to enhance the resilience of the Turkish banking sector in a high-inflation.