Evaluation of Sustainability Reporting in Islamic Banks: The Case of Albaraka Türk Participation Bank

Sustainability refers to the capacity to meet the needs of both present and future generations. Given the serious dimensions of environmental destruction, sustainability is primarily associated with environmental concerns. Organizations that pursue sustainability goals usually disclose these goals to the public via sustainability reports. The objective of this study is to assess the compliance of sustainability reports published by Islamic banks in Türkiye within the framework outlined by the Capital Markets Board. The sample for this study consists of several sustainability reports published by Albaraka Türk Participation Bank in 2019, 2020, and 2021. These reports have been selected based on their suitability and scope, ensuring that they align with the research objectives. The bank operates in Türkiye and is included in the BIST sustainability Indices of Borsa İstanbul. The research analyzed the obtained data through document analysis using the descriptive analysis method. An assessment framework has been developed to evaluate the disclosures made in sustainability reports on each sustainability principle based on the Sustainability Principles Compliance Framework topics and a scoring system. The study conducted an empirical analysis using a sample of sustainability reports and the developed evaluation framework. The analysis indicates that the bank's sustainability reports are generally compliant with the Sustainability Principles Compliance Framework. The scale of compliance ranges from 0 to 21 points, high scores indicate strong compliance. Upon analyzing the Bank's 2019 sustainability report, it received a total score of 17 in the evaluation table for General Principles, Environmental Principles, Social Principles, and Corporate Governance Principles. The Bank's 2020 and 2021 sustainability reports received a score of 18. When graded on a scale of 'poor, moderate, good, and very good', the score obtained can be considered 'very good'. Accordingly, it is concluded that the bank's sustainability reports are in 'very good' compliance with the Sustainability Principles Compliance Framework. The assessment framework's applicability to the analysis of sustainability reports has been tested. This study is original in its evaluation of sustainability reports from other organizations within the context of sustainability principles. It contributes to the literature by evaluating sustainability reports using the Sustainability Principles Compliance Framework and improving reporting practices.