Green banking strategies: Evidence from Turkish banks

Abstract

Given the expanding role of green finance in developing economies, this study investigates green banking strategies utilized by Turkish banks as a case study. Data constitutes banks included in Borsa I(center dot)stanbul's BIST 100 Index as of 2023. Content analysis and purposive sampling methods are utilized to analyze the data. Results indicate that Turkish banks utilize various green banking strategies to realize carbon neutral or net zero targets. Provision of green financing products is the most common strategy, followed by disclosure and reporting. Measuring, monitoring and reducing greenhouse gas emissions, and reducing energy consumption in bank buildings are other popular strategies. The results have important policy implications. Banks can establish longterm goals for climate change while laying out a clear plan for supporting transition away from fossil fuels in the short-term through loans and other financial products and include Environment, Social, and Governance (ESG) into the core of their strategies and reporting by providing incentives for CEOs and staff to implement ESGrelated policies. Increased government climate action and research and development support may pave the way for private funding to commercialize and mainstream decarbonization technologies.