Until December 29, 2023, there was no legislation related to ESG (Environmental, Social, and Governance) and corporate sustainability in our country. The Turkish Sustainability Reporting Standards (TSRS), determined by the Public Oversight, Accounting, and Auditing Standards Authority (POAASA), were published in the Official Gazette on December 29, 2023, and have become mandatory for certain companies from January 1, 2024, onwards.
TSRS was established in parallel to the “IFRS S1-General Requirements for Disclosure of Sustainability-related Financial Information” and “IFRS S2-Climate-related Disclosures” standards issued by the International Sustainability Standards Board (ISSB) regarding sustainability reporting. Accordingly, TSRS reporting will involve examination and reporting under the headings of management, strategy, risk management, metrics, and targets related to sustainability.
Companies fall under the scope of TSRS if they meet at least two of the following criteria for two consecutive reporting periods:
- Having a total asset of 500 million TL and above,
- Annual net sales revenue exceeding 1 billion TL,
- Having more than 250 employees.
According to the transition period principles, companies are not required to present comparative information in the first reporting period upon adopting TSRS, and for the first two years, the disclosure of Scope 3 classified carbon emission data is also exempted from the obligation.
