Green business : sustainability and risk management in Turkish banking sector

Abstract

Global warming, climate change, reduction of natural resources, damage to biodiversity all increase poverty and unemployment, amongst other things. Environmental and social problems result from an unconscious lifestyle, excessive production and consumption activities. The starting point of sustainability originates from these environmental problems that have been increasing. Sustainable development means meeting the needs of today without endangering future generations and harming natural resources and attaches importance to environmental and social development as well as economic development. For businesses to survive, they need to consider all dimensions of sustainability. Banking is one sector that has come to the forefront in recent years regarding sustainable management. Although the banking sector does not directly affect the environment, it does have indirect effects. This study aims to examine the extent to which the six banks that signed the Responsible Banking Principles from Turkey pay attention to the dimensions of sustainability in their risk management activities announced on their websites. Although there are studies on sustainable banking or risk management in the literature, there is conceptual confusion when the analysis methods are examined. In this study, the author tries to clarify this issue. Results show that the six banks that signed the Responsible Banking Principles paid attention to the sustainability of the environmental and social aspects in their risk management activities.