The impact of sustainability reporting on financial performance: The case of Turkey and Qatar

The main purpose of this study is to examine the relationship between sustainability performance and financial performance in energy sector companies in Turkey and Qatar using a multi-criteria approach and to conduct a comparative analysis between the two countries. The research sample consists of a total of 16 companies, including 8 energy companies each from Borsa Istanbul and the Qatar Stock Exchange, for the period 2017-2022. The performance of the companies was evaluated using financial performance criteria consisting of Net Profit Margin, Return on Assets (ROA), Return on Equity (ROE), and Earnings Per Share (EPS), and environmental performance criteria consisting of CO₂ Emissions, Energy Efficiency, CSR Expenditures, and Recycling Rates. The Technique for Order Preference by Similarity to Ideal Solution (TOPSIS) method from Multi-Criteria Decision Making (MCDM) methods was used for data analysis. The relationship between financial and environmental TOPSIS scores was tested using the Spearman Rank Correlation Coefficient. According to the research findings, among the Turkish companies, Tatlıpınar Energy led in financial performance, while Aydem Renewable Energy led in environmental performance throughout the entire period. Among the Qatari companies, Industries Qatar (IQ) ranked high in both performance types. A statistically significant positive relationship was found between financial and environmental TOPSIS scores (ρ = 0.342, p = 0.0012). This result demonstrates that sustainability performance and financial performance are not conflicting but rather complementary objectives. Keywords: Sustainability, Financial Performance, Environmental and Social Governance, Energy Sector, Borsa Istanbul, Qatar Stock Exchange.