sustainability reporting in the banking sector sevgi osman

37

Sustainability Reporting in the Banking Sector

Sevgi Osman

Abstract Adequate disclosure of sustainable development - a concept that is extremely important for companies across

sectors - provides the opportunity to track progress and achievements in this direction. In recent years, there has been significant growth in initiatives to improve accountability. Considering the role of the financial sector for the whole economy and society and the growing environmental care, the provision of non-financial information by banks is also an extremely important task for them. But the numerous overlapping frameworks, principles, standards, etc., the lack of a standardized approach and generally accepted practice in this area leads to a decrease in transparency. Therefore, there is a need to harmonize existing practices for more sustainability reporting and / or updating in line with the latest sectoral requirements.

Keywords: sustainability reporting, banking industry, frameworks, standards, principles, codes of conduct,

harmonization JEL Code: A00

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1.

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. 2

1 The role of sustainability reports (2016) http://www.escarus.com/the-role-of-sustainability-reports. 2 Araya, H. M. B., Mas, E. S., & Garrido, F. P. (2014). Sustainability reporting in European cooperative banks: An exploratory analysis. In REVESCO. Revista de Estudios Cooperativos (Vol. 115, pp. 30-56). Universidad Complutense de Madrid.

I Z V E S T I A J O U R N A L O F T H E U N I O N O F S C I E N T I S T S - V A R N A

38 ECONOMIC SCIENCES SERIES

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3 -

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4 2.

( - -

5 Khan, 2015).

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6

7

8

3 Ernst & Young. (2016). Value of Sustainability Reporting: a study by EY and Boston College Center for Corporate Citizenship. 4 The benefits of sustainability reporting, GRI Draft, https://www.globalreporting.org/resourcelibrary/The-benefits-of-sustainability-reporting.pdf 5 Turley-McIntyre, B., Marchl, Journal of Co-Operative Accounting and Reporting, 4, 35-58. 6 Nwobu, O. A., Owolabi, A. A., & Iyoha, F. O. (2017). Sustainability reporting in the Financial Sector: A Study of Nigerian Banking Sector. Journal of Internet Banking and Commerce, 22(S8). 7 Mahmud, S., Biswas, T., & Islam, N. (2017). Sustainability Reporting Practices and Implications of Banking Sector of Bangladesh according to Global Reporting Initiative (GRI) Reporting Framework: An Emprical Evaluation. International Journal of Business and Management Invention, 6(3), 01-14. 8 Ireton, K., Valido, V., & Ramirez, L. (2017). Sustainability Reporting in the Financial Sector: A Governmental Approach.

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(CFERF, 2009)9. Araya

10 KPMG --

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11

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14 3.

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9 Turley-McJournal of Co-Operative Accounting and Reporting, 4, 35-58. 10 Araya, H. M. B., Mas, E. S., & Garrido, F. P. (2014). Sustainability reporting in European cooperative banks: An exploratory analysis. In REVESCO. Revista de Estudios Cooperativos (Vol. 115, pp. 30-56). Universidad Complutense de Madrid. 11 Corporate responsibility reporting in the Banking sector. Key findings from the KPMG Survey of Corporate Responsibility Reporting 2015 , https://assets.kpmg.com/content/dam/kpmg/pdf/2016/07/corporate-responsibility-in-the-banking-sector.pdf 12 Yen, T. T. H. (2014). CRS in bankinh sector-A literature review and new research directions. 13 Araya, H. M. B., Mas, E. S., & Garrido, F. P. (2014). Sustainability reporting in European cooperative banks: An exploratory analysis. In REVESCO. Revista de Estudios Cooperativos (Vol. 115, pp. 30-56). Universidad Complutense de Madrid. 14 Nwobu, O. A., Owolabi, A. A., & Iyoha, F. O. (2017). Sustainability reporting in the Financial Sector: A Study of Nigerian Banking Sector. Journal of Internet Banking and Commerce, 22(S8). 15 A brief history of sustainability, Steps to Sustainability, http://stepstosustainability.com/?page_id=829 16



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Sustainability Reporting Tools

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17 -18 (Skouloudis et al., 2009, Tsang et al., 2009, Brown et

-2013). T -College Center for Corporate Citizenship (2013)19 Perez (2016)20.

21 Tellus22

3.2.

17 World Economic Forum (2017) Sustainability. We know it matters, but how do we measure it? https://www.weforum.org/agenda/2017/09/struggling-to-measure-sustainability/ 18

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19 Value of Sustainability Reporting(2013) A study by the Center for Corporate Citizenship and Ernst & Young LLP, http://www.confluencellc.com/uploads/3/7/9/6/37965831/valueofsustainabilitysummary.pdf 20 Perez, O. (2016). The Green Economy Paradox: A Critical Inquiry into Sustainability Indexes. Minn. JL Sci. & Tech., 17, 153. 21 Coalition for environmentally responsible economies (Ceres)

- https://www.ceres.org/about-us

22

About, Tellus Institute, https://www.tellus.org/about/the-institute

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AA10000, SA8000, ISO26000, OISO 14001.

(Environmental Management System EMS23)

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3.3.

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25 -

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26 - DJSI FTSE4Good

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USEPA, What is an Environmental Management System EMS? https://www.rmagreen.com/rma-blog/bid/75673/What-is-an-Environmental-Management-System 24 -14001_11_16 25 T Orsato (2015) -

26 Stichele, M.V. (2015) Mobilising the financial sector for a sustainable future , Mapping existing approaches to promote social and environmental sustainability goals in the financial sector, SOMO, https://www.somo.nl/wp-content/uploads/2015/11/Mobilising-the-financial-sector-for-a-sustainable-future-4.pdf



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UNEP FI

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27 - quator Principles - EP)

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Responsible Investment - UNPRI)

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Reporting and Investment Standards - IRIS) 29

27

http://www.gabv.org/ Value-based banking/

- GABV

-based Banking? https://www.shareable.net/blog/a-shareable-explainer-what-is-values-based-banking / 28 Weber, O., & Adeniyi, I. (2015). Voluntary Sustainability Codes of Conduct in the Financial Sector. 29 Global Impact Investing Network (GIIN)

Global Impact Investing Network; https://thegiin.org/

43

30 IRIS GIIN

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(Bugg-Levine and Emerson 2011, 5). Weber Afedini (2015)31

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Carbon Principles, Climate Principles, Green Bond Principles.

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(2010)33

SRTss.34

Scholtens

35 30 Impact investing

Global Impact Investing Network; https://thegiin.org/ 31 Weber, O., Afedini, I. (2015) Volunraty sustainability codes of conduct in the financial sector, CIGI Papers No 78, Nov 2015; https://www.cigionline.org/sites/default/files/cigi_paper_78.pdf / 32 Escrig-Olmedo, E., -Torres, M. J., & Fernandez-Izquierdo, M. A. (2010). Socially responsible investing: sustainability indices, ESG rating and information provider agencies. International journal of sustainable economy, 2(4), 442-461. 33 Delmas, M., & Blass, V. D. (2010ratings. Business Strategy and the Environment, 19(4), 245-260. 34 World Economic Forum (2017) Sustainability. We know it matters, but how do we measure it? https://www.weforum.org/agenda/2017/09/struggling-to-measure-sustainability/ 35 Ireton, K., Valido, V., & Ramirez, L. (2017). Sustainability Reporting in the Financial Sector: A Governmental Approach



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UNGC 1 1 1 1 1 0 1 1 1 1

GRI 1 0 0 1 1 1 1 0 1 1

UN PRI 1 1 1 1 1 1 1 0 1 1

ISO 140001 0 0 0 1 0 0 0 0 0 0

IRIS 0 0 0 0 0 0 0 0 0 0

36 Verkerk, D. (2014). Corporate social responsible behaviour in the financial industry (Doctoral dissertation, NSBE-UNL). 37 Sholtens, B. (2008), Corporate Social Responsibility in the International Banking Industry, Journal of Business Ethics (2009) 86:159 175 38 Biggest European banks in 2017, by assets, https://www.statista.com/statistics/383406/leading-europe-banks-by-total-assets/ 39 -

45

UNEP FI 1 1 0 1 1 1 1 0 1 1

Equator Principles 1 1 1 0 1 1 1 0 1 1

GABV 0 0 0 0 0 0 0 0 0 0

Climate Principles 1 1 1 1 0 1 0 0 0 0

Green Bond Principles 1 1 1 1 0 1 0 0 0 0

Soft Commodities Compact 0 1 0 1 1 1 1 0 1 0

CDP 1 1 1 1 1 1 1 0 1 1

1 1 0 1 1 1 1 0 0 0

1 0 0 0 1 1 1 0 1 1

1 1 0 1 1 1 1 0 1 1

1 1 0 1 1 1 1 0 1 1

1 0 0 1 1 1 1 1 1 1

1 0 1 1 1 0 1 1 1 1

1 1 1 1 1 1 1 1 1 1

1 1 1 1 1 1 1 1 1 1

1 1 1 1 1 1 1 1 1 1

1 1 1 1 1 1 1 0 0 0

1 1 1 1 1 0 1 1 1 1

DJSI 0 1 0 1 1 1 0 0 0 0

FTSE4Good 1 1 0 1 1 1 0 0 0 0

GHG 1 1 0 1 1 1 1 1 1 0

1 1 0 1 1 1 1 1 1 0

- 1 1 0 1 1 1 1 1 1 0

23 21 12 24 23 22 21 10 19 15

( Carbon Principles, Climate Principles, Green Bond Principles ) - Deutsche Bank, HSBC Holdings.

-

Verkerk



-

-

Scholtens -

1. A brief history of sustainability, Steps to Sustainability, <http://stepstosustainability.com/?page_id=829>

2. A Shareable Explainer: What is Values-based Banking? <https://www.shareable.net/blog/a-shareable-explainer-what-is-values-based-banking>

3. About, Tellus Institute 4. Araya, H. M. B., Mas, E. S., & Garrido, F. P. (2014). Sustainability reporting in European

cooperative banks: An exploratory analysis. In REVESCO. Revista de Estudios Cooperativos (Vol. 115, pp. 30-56). Universidad Complutense de Madrid.

5. Araya, H. M. B., Mas, E. S., & Garrido, F. P. (2014). Sustainability reporting in European cooperative banks: An exploratory analysis. In REVESCO. Revista de Estudios Cooperativos (Vol. 115, pp. 30-56). Universidad Complutense de Madrid.

6. Biggest European banks in 2017, by assets, <https://www.statista.com/statistics/383406/leading-europe-banks-by-total-assets>

7. Corporate responsibility reporting in the Banking sector. Key findings from the KPMG Survey of Corporate

8. offs of sustainability ratings. Business Strategy and the Environment, 19(4), 245-260.

9. Ernst & Young. (2016). Value of Sustainability Reporting: a study by EY and Boston College Center for Corporate Citizenship.

10. Escrig- -Torres, M. J., & Fernandez-Izquierdo, M. A. (2010). Socially responsible investing: sustainability indices, ESG rating and information provider agencies. International journal of sustainable economy, 2(4), 442-461.

11. Global Alliance for Banking on Values 12. Global Impact Investing Network; https://thegiin.org/ 13. Ireton, K., Valido, V., & Ramirez, L. (2017). Sustainability Reporting in the Financial Sector: A

47

Governmental Approach. 14. -

14001_11_16 15. Mahmud, S., Biswas, T., & Islam, N. (2017). Sustainability Reporting Practices and

Implications of Banking Sector of Bangladesh according to Global Reporting Initiative (GRI) Reporting Framework: An Emprical Evaluation. International Journal of Business and Management Invention, 6(3), 01-14.

16. Nwobu, O. A., Owolabi, A. A., & Iyoha, F. O. (2017). Sustainability reporting in the Financial Sector: A Study of Nigerian Banking Sector. Journal of Internet Banking and Commerce, 22(S8).

17. Perez, O. (2016). The Green Economy Paradox: A Critical Inquiry into Sustainability Indexes. Minn. JL Sci. & Tech., 17, 153.

18. Responsibility Reporting 2015 , <https://assets.kpmg.com/content/dam/kpmg/pdf/2016/07/ corporate-responsibility-in-the-banking-sector.pdf>

19. Sholtens, B. (2008), Corporate Social Responsibility in the International Banking Industry, Journal of Business Ethics (2009) 86:159 175

20. Stichele, M.V. (2015) Mobilising the financial sector for a sustainable future , Mapping existing approaches to promote social and environmental sustainability goals in the financial sector, SOMO

21. The benefits of sustainability reporting, GRI Draft, <https://www.globalreporting.org/ resourcelibrary/The-benefits-of-sustainability-reporting.pdf>

22. The role of sustainability reports (2016) <http://www.escarus.com/the-role-of-sustainability-reports> 23. Turley-

financial institutions. Journal of Co-Operative Accounting and Reporting, 4, 35-58. 24. USEPA, What is an Environmental Management System EMS? 25. Value of Sustainability Reporting(2013) A study by the Center for Corporate Citizenship and

Ernst & Young LLP, <http://www.confluencellc.com/uploads/3/7/9/6/37965831/ valueofsustainabilitysummary.pdf>

26. Verkerk, D. (2014). Corporate social responsible behaviour in the financial industry (Doctoral dissertation, NSBE-UNL).

27. Weber, O., & Adeniyi, I. (2015). Voluntary Sustainability Codes of Conduct in the Financial Sector.

28. World Economic Forum (2017) Sustainability. We know it matters, but how do we measure it? 29. Yen, T. T. H. (2014). CRS in bankinh sector-A literature review and new research directions. 30. 31. < http://www.gabv.org> 32. <https://www.ceres.org/about-us> 33. <https://www.rmagreen.com/rma-blog/bid/75673/What-is-an-Environmental-Management-

System> 34. <https://www.somo.nl/wp-content/uploads/2015/11/Mobilising-the-financial-sector-for-a-

sustainable-future-4.pdf> 35. <https://www.tellus.org/about/the-institute> 36. <https://www.weforum.org/agenda/2017/09/struggling-to-measure-sustainability>

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