Performance analysis focused on sustainable finance and renewable energy: An application on banks

This study aims to evaluate the roles of certain banks operating in Turkey in financing renewable energy investments using multi-criteria decision-making approaches. As part of the sustainable development goals, the importance of green finance is increasingly growing, and measuring the contribution of the banking sector in this area has become a strategic necessity. In this context, both financial and environmental criteria were taken into account to conduct an objective, comparative analysis of the banks' performance. The data used in the study were derived from the 2024 annual reports and sustainability reports of the selected banks. During the analysis process, the weights of the criteria were calculated using the Entropy method, and the banks were ranked according to their performance using the TOPSIS method. The criteria employed in the study were determined based on expert opinion and include financial indicators such as the amount of renewable energy loans, net profit, ESG score, and the volume of sustainable finance, as well as environmental indicators such as emission distribution, energy consumption, and paper usage. Based on the analysis results, banks were ranked according to their performance. The findings reveal a strong relationship between banks' sustainable finance strategies and their environmental responsibilities. Additionally, it was observed that integrating environmental indicators into financial analysis processes directly impacts the strategic positioning of banks. The analysis conducted through the combined use of the Entropy and TOPSIS methods offers an objective and applicable approach for sustainability-based performance assessments in the financial sector. Keywords: Renewable Energy, Banking Sector, Sustainability, ESG