Turkish Sustainability Reporting Standards (TSRS) and Their Scope of Application Published in the Official Gazette

The Turkish Sustainability Reporting Standards (TSRS) and their scope of application have been published in the Official Gazette.

The ISSB has so far issued two Standards. As incorporated into Turkish legislation: a) The objective of TSRS 1 General Requirements for Disclosure of Sustainability-related Financial Information is to require an entity to disclose information about its sustainability-related risks and opportunities that is useful to primary users of general purpose financial reports in making decisions relating to providing resources to the entity. b) The objective of TSRS 2 Climate-related Disclosures is to require an entity to disclose information about its climate-related risks and opportunities that is useful to those users.

Meanwhile, under the EU Corporate Sustainability Reporting Directive (CSRD) — described as a statement of progress in the transition to a green and circular economy under the principles of the European Green Deal — around 50,000 entities established in the EU have begun mandatory sustainability reporting, and these reports are subject to mandatory assurance.

The Board decision on the scope of application of the TSRS was adopted so that Türkiye, starting with sustainability reporting led by large entities, can become a preferred country in international investment decisions and realise its potential to become one of the world's leading economies in the near future through the competitiveness it will gain in global capital allocation, particularly in access to green finance. Entities within the defined scope that exceed the thresholds in the decision are required to prepare sustainability reports from 01/01/2024.

Criteria: − Total assets of TRY 500 million − Annual net sales revenue of TRY 1 billion − 250 employees

It has been decided that the TSRS shall be applied in preparing the sustainability reports of institutions, organisations and entities that exceed the thresholds for at least two of these criteria in two consecutive reporting periods.

The Turkish Sustainability Reporting Standards and the Scope of Application of the Turkish Sustainability Standards were published in the Official Gazette No. 32414 (1st duplicate) of 29/12/2023.