Articles
29.02.2024
Sustainability Reporting Standards Introduced in Turkey: Requirements and Implementation
With amendments made in legislation in 2022, the Public Oversight, Accounting and Auditing Standards Authority was authorized to determine the Turkish Sustainability Reporting Standards (TSRS). In line with this, the Board has published a decision regarding the determination of sustainability standards.
In accordance with this decision, two sets of standards were established based on the standards published by the International Sustainability Standards Board (ISSB):
• TFRS 1 - General Provisions on the Disclosure of Financial Information Related to Sustainability
• TFRS 2 - Climate-related Disclosures
In addition, the Board has also clarified the scope of application of TSRS. The use of TSRS in sustainability reports will be required if the company is classified among the specified companies in following categories: Investment firms, collective investment firms, portfolio management companies, mortgage finance institutions, central settlement institutions, central securities depositories, data storage institutions, joint stock companies joint stock companies having an issuance certificate approved by the Capital Markets Board, rating agencies, financial holding companies, financial leasing companies, factoring companies, finance companies, asset management companies, savings finance companies, insurance, reinsurance, and pension companies, authorized institutions allowed to operate in Borsa Istanbul markets, precious metals intermediary institutions, companies engaged in precious metal production or trade.
In addition to this, these companies must exceed at least two of the following criteria in two consecutive reporting periods:
• Total assets exceeding TRY 500 million
• Annual net sales revenue exceeding TRY 1 billion
• Number of employees more than 250
Banks subject to supervision of the Banking Regulation and Supervision Agency are within the obligatory reporting scope without being subject to this criterion.
Companies not falling under the specified criteria may voluntarily choose to adopt TSRS in their reports. The Authority is expected to progressively broaden the scope.
Affected companies are required to publish their sustainability reports within 9 months from the obligation to comply with the TSRS standards. For companies that are required or choose to publish interim financial reports, this period will be shorter. It is expected that sustainability reports will be presented alongside the second quarter or semi-annual interim financial reports.