This study analyzes the financial failure risk of companies listed in the BIST Participation Sustainability Index between 2020 and 2024 using the Altman Z-Score, Springate S-Score, and Fulmer H-Score models. While these companies meet environmental, social, and governance (ESG) criteria and offer ethical investment opportunities, their financial strength remains uncertain. Findings reveal that firms such as VESTEL (VESTL), Vestel Beyaz Eşya (VESBE), LOGO Yazılım (LOGO), MLP Sağlık Hizmetleri (MPARK), and Tekfen Holding (TKFEN) exhibit financial fragility across all models, indicating a high risk of failure. In contrast, Kardemir Karabük Demir Çelik (KRDMA), Galata Wind Enerji (GWIND), Sun Tekstil (SUNTK), Tüpraş (TUPRS), and Polisan Holding (POLHO) demonstrate strong performance both in sustainability and financial stability. Supporting literature highlights sectoral differences and emphasizes that ESG scores alone do not guarantee financial success. Therefore, investors should adopt a multidimensional approach, considering both sustainability metrics and financial risk indicators when making investment decisions.
Financial Distress Detection, BIST Participation Sustainability Index