How to Prepare a Sustainability Report in Banks? – Importance, Processes and Consulting Services

The financial sector plays a critical role in supporting sustainable development. Banks have significant impacts on environmental, social and governance (ESG) issues through their lending, investment decisions and financial services. Therefore, sustainability reports enable banks to transparently demonstrate their responsible financing policies and environmental and social commitments.

Sustainability reports in banks are of great importance not only to meet regulatory requirements, but also to increase investor confidence, facilitate access to green finance and provide competitive advantage.

1. Importance of Sustainability Reporting for Banks
a) Legal and Regulatory Compliance
Global and national regulators require financial institutions to prepare sustainability reports. The Turkish Sustainability Reporting Standards (TSRS) and Capital Markets Board (SPK) regulations require banks to publish sustainability reports detailing their environmental and social impacts.

Example: In Turkey, the BRSA and SPK require banks to disclose their green financing policies and report their compliance with ESG criteria.

b) Investor Confidence and Financial Performance
Sustainability reports prove that banks follow responsible investment strategies and promote green financing. Banks that comply with ESG factors can receive low-interest loans and investments from international funds.

Example: Banks that report on sustainability can attract investor attention by providing financing for low-carbon projects.

c) Competitive Advantage and Brand Image
Sustainability is not only a regulatory requirement for banks, but also an important factor in terms of customer loyalty and brand reliability. Banks that offer environmentally friendly financial services become more attractive to young generation investors and international partnerships.

Example: Sustainable financial products such as green bank cards and carbon neutral loans increase customer loyalty.

2. How to Prepare a Sustainability Report for Banks?
a) Choosing Reporting Standards
Banks should act in accordance with international and national reporting standards when preparing their sustainability reports. Here are the most commonly used reporting frameworks:

GRI (Global Reporting Initiative): Global sustainability reporting standard.

SASB (Sustainability Accounting Standards Board): Sector-based sustainability reporting.

TCFD (Task Force on Climate-related Financial Disclosures): Focuses on disclosing climate-related financial risks.

TSRS (Turkish Sustainability Reporting Standards): Sustainability reporting framework specific to Turkey.

b) Collection of Sustainability Performance Data
The data that forms the basis of the report must be collected accurately and completely. Banks should analyze the following data categories:

Environmental Impacts: Carbon footprint, energy and water consumption, waste management.

Social Impacts: Employee rights, social projects, ethical business practices.

Governance: Transparency policies, ethical financing rules, management structure.

Example: Banks should measure the carbon emissions of the projects they finance and add them to their reports.

c) Determining Sustainability Goals
One of the most important sections of the report is defining sustainability goals. Banks should set goals for the coming years, such as carbon neutrality, renewable energy financing, social responsibility projects.

Example: "Our bank is committed to reducing carbon emissions by 50% in the projects it finances by 2030."

d) Publishing the Report and Presenting it to Stakeholders
The prepared report should be shared with investors, customers, and regulatory authorities. Banks can increase its visibility by publishing the report on their websites, integrating it into their annual activity reports, and announcing it through the media.

3. Benefits of TSRS Sustainability Reporting Consultancy for Banks
a) Ensuring Compliance with Regulations
Compliance with TSRS and ESG criteria requires technical knowledge. Consultancy services help banks prepare their sustainability reports in accordance with legal requirements.

b) Data Analysis and Verification Process
Incorrect or incomplete reporting can damage investors' trust in banks. Consultancy firms specialize in data verification and ESG reporting and offer banks accurate and transparent reporting processes.

c) Strengthening the Bank's Corporate Reputation
Sustainability consultancy helps banks develop environmentally friendly financing projects. This adds value to the brand.

Preparing a sustainability report for banks is not only a necessity, but also a critical step for financial stability, investor trust and competitive advantage. TSRS consultancy services help banks successfully manage these processes and prepare transparent, reliable reports.

? Increase investor trust with transparent reporting.
? Discover sustainable financing opportunities.

? Ensure full compliance with regulatory requirements.

? Contact PROPM to accelerate your bank's sustainability transformation ?