Impact Policy Tracker Policy

Türkiye Sustainability Reporting Standards (TSRS 1 & TSRS 2)



Announced in December 2023 and effective from January 2024, Türkiye’s Sustainability Reporting Standards (TSRS) are among the first of their kind to be implemented globally. Aligned with IFRS S1 and S2, TSRS 1 requires businesses to disclose information on sustainability-related risks and opportunities relevant to the primary users of general-purpose financial reports. TSRS 2 focuses specifically on climate-related risks and opportunities that are reasonably expected to impact a company's financial position.

Highlights

  • Early adopter: together with the European Union, Türkiye has been among the first jurisdictions in the world to effectively apply sustainability reporting standards. Companies have been required to release their reports for the annual period beginning in January 2024, with the first sustainability reports due in 2025.

  • Full alignment with international standards: TSRS 1 and TSRS 2, based on IFRS S1 and S2, require certain companies regulated by the Capital Markets Board of Türkiye - including banks and public entities - to report if they exceed two out of three specified thresholds for two consecutive years.

Government’s Role:
Market Regulator


Country:
Türkiye

Policy Type:
Sustainability Disclosure Standards

Year: 2023

Responsible Institution:
Public Oversight Accounting and Auditing Standards Authority (KGK), Capital Markets Board of Türkiye

Sustainability Disclosure Regulations

What are Sustainability Disclosure Regulations?

Sustainability Disclosure Regulation requires financial market participants to report on their impacts on the economy, people, and planet, alongside financial information. To comply with the regulatory mandate, organisations must use Sustainability Disclosure Standards (SDS),which ensure that the information disclosed is comprehensive, verified, comparable and decision-useful. They can help organisations assess not only how sustainability-related risks and opportunities affect the short, medium and long-term enterprise value (single materiality; only financially-relevant information) but also how their operational impacts affect people and the planet (double materiality). The availability of such information is essential for investors and other key decision makers to integrate social and environmental factors into their investment and decision-making processes.

SDS are one of the most effective mechanisms to achieve comparable, consistent and reliable information on impact. Although companies can opt to report based on existing voluntary standards (such as those from the Global Reporting Initiative - GRI), in some jurisdictions publicly listed companies must abide by mandatory financial and non-financial (i.e. sustainability-related) disclosure requirements issued by financial regulators. These mandatory reporting standards are increasingly being implemented in different countries, both in developed and developing economies, most of which are either adopting the standards set by the IFRS Foundation’s International Sustainability Standards Board (ISSB) in full or working on local adaptations with local specificities to cater for specific nuances, capabilities, readiness and topics relevant to their local markets.