What Are the Criteria for a Sustainability Audit?

A sustainability audit is carried out against specific criteria to assess an entity's environmental, social and governance (ESG) performance. These criteria aim to determine how far the entity has achieved its sustainability goals and how accurate its related reporting is.

Main sustainability audit criteria:

1. Environmental criteria:

   • Energy efficiency: the entity's energy consumption and energy efficiency practices.

   • Waste management: waste reduction, recycling and disposal methods.

   • Water use: water consumption and practices to protect water resources.

   • Carbon footprint: greenhouse gas emissions and strategies to tackle climate change.

2. Social criteria:

   • Employee rights: occupational health and safety, fair pay and working conditions.

   • Community contribution: community relations, social responsibility projects and contributions to local communities.

   • Training and development: employee training, career development and talent management.

3. Governance criteria:

   • Ethical principles: business ethics, anti-corruption and transparency policies.

   • Risk management: identifying and managing sustainability risks.

   • Compliance and legislation: compliance with legal regulations and international standards.

In Türkiye, the Public Oversight, Accounting and Auditing Standards Authority (KGK) sets the standards for sustainability audits and authorises auditors. By publishing the Turkish Sustainability Reporting Standards (TSRS), KGK has set out the principles that entities must follow in sustainability reporting. These standards are aligned with the international standards issued by the International Sustainability Standards Board (ISSB).

Sustainability audits are carried out by audit firms authorised by KGK in accordance with the Turkish Standards on Auditing (TDS). The audit process involves gathering the necessary information and documents in line with the audit criteria, forming an opinion based on them and reporting that opinion.

These criteria help entities assess and improve their sustainability performance objectively. They also enhance the entity's reputation and competitiveness by providing reliable and transparent information to stakeholders.