Evaluation of ESG Criteria in the Banking Sector: An Approach with the Fuzzy LMAW Method
Chapter from the book: Demir, G. (ed.) 2025. Strategic Decision Making in Social Sciences: Applications with Multi-Criteria Decision Making Methods.

Yüksel Aydın
Sivas Cumhuriyet University

Synopsis

In the age of digital transformation, the banking sector is undergoing a rapid evolution that necessitates the integration of sustainability principles into strategic decision-making processes. This study uses the Fuzzy Logarithmic Weighting Method (F-LMAW), one of the multi-criteria decision-making (MCDM) techniques, to evaluate banking strategies in line with Environmental, Social and Governance (ESG) criteria. Within the scope of the study, an expert group consisting of different areas of expertise such as banking technologies, financial technologies (FinTech), regulation, customer experience and academia was formed and ten basic criteria were determined. Expert opinions were collected using linguistic scales, converted into fuzzy numbers and analyzed using the F-LMAW method. According to the results obtained, the Data Security and Customer Privacy criteria have the highest importance, followed by Digital Ethics and Compliance and Energy Efficiency criteria. These findings indicate the increasing importance of governance and environmental elements in banking strategies. The study provides a systematic framework for the sustainability-oriented evaluation of banking strategies and develops managerial recommendations for decision-makers. In addition, the limitations of the study and suggestions for future research are included.

How to cite this book

Aydın, Y. (2025). Evaluation of ESG Criteria in the Banking Sector: An Approach with the Fuzzy LMAW Method. In: Demir, G. (ed.), Strategic Decision Making in Social Sciences: Applications with Multi-Criteria Decision Making Methods. Özgür Publications. DOI: https://doi.org/10.58830/ozgur.pub768.c3166

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Published

June 25, 2025

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