As global attention on environmental, social, and governance (ESG) practices continues to grow, Türkiye has taken a decisive step by mandating sustainability disclosures for qualifying companies under the Türkiye Sustainability Reporting Standards (TSRS). With the new framework now in effect, thousands of Turkish enterprises are racing against time to finalize and publish their sustainability reports alongside second-quarter financial statements, with a strict publication window set between August 11 and 19.
This marks a significant milestone in Türkiye’s journey toward more transparent, accountable, and internationally aligned corporate governance. The initiative is being supported by consulting and auditing firms like Sistem Global, which offer technical expertise and regulatory guidance to help businesses comply effectively.
What Are the Türkiye Sustainability Reporting Standards (TSRS)
The TSRS is Türkiye’s national sustainability reporting framework, designed to align domestic corporate practices with global ESG expectations. It aims to promote transparency, comparability, and credibility in how companies communicate their environmental and social impacts.
The framework is modeled on international best practices, including those developed by the International Financial Reporting Standards (IFRS) Foundation’s ISSB (International Sustainability Standards Board). TSRS ensures that stakeholders — from investors to regulators to the public — have access to reliable and comparable sustainability performance data.
Two Core Standards Drive the Framework
The reporting obligation is currently anchored by two core standards:
TSRS 1 – General Requirements
This standard mandates disclosures regarding how companies govern and manage sustainability-related risks and opportunities. It requires transparency around governance structures, risk assessment methodologies, and strategy integration.TSRS 2 – Climate-Related Disclosures
This standard focuses on the climate dimension of sustainability, demanding detailed information on greenhouse gas (GHG) emissions, climate-related risk exposure, and mitigation or adaptation strategies. Carbon footprint calculations, transition plans, and emissions targets are among the elements companies must disclose.
Together, these standards form the backbone of a comprehensive ESG reporting structure that places Türkiye among the growing number of countries aligning with global climate accountability trends.
Which Companies Are Affected by TSRS
The TSRS applies to companies that meet at least two of the following three thresholds over two consecutive reporting periods:
Total assets of 500 million Turkish lira or more
Annual net sales revenue of 1 billion Turkish lira or more
A workforce of 250 or more employees
These criteria primarily target medium to large-scale businesses, especially in sectors with high environmental or financial exposure, such as manufacturing, banking, energy, logistics, and heavy industry.
For public companies listed on Borsa İstanbul, as well as institutions regulated by the Capital Markets Board (SPK), the Banking Regulation and Supervision Agency (BDDK), or the Savings Deposit Insurance Fund (TMSF), the TSRS requirements apply unconditionally, regardless of size or revenue.
Strict Timeline and Assurance Requirement
Under the new rules, sustainability reports for the 2024 fiscal year must be published no later than mid-August 2025. Crucially, these reports must be disclosed simultaneously with second-quarter financial results. Companies that fail to meet the deadline may face regulatory scrutiny or reputational damage, especially as stakeholders increasingly demand credible ESG performance metrics.
Moreover, sustainability reports are required to undergo independent assurance — a process similar to financial auditing, aimed at validating the completeness and accuracy of the disclosed data. This elevates the quality and trustworthiness of sustainability information and reinforces investor confidence.
Sistem Global Offers Expert Guidance in a Complex Landscape
As sustainability compliance becomes more data-driven and regulatory-focused, companies are seeking specialized assistance to navigate the new landscape. Sistem Global, a leading Turkish consultancy, has emerged as a key partner in helping businesses manage the complex reporting and verification processes.
Through tailored auditing and advisory services, the firm assists clients in aligning their ESG strategy with TSRS standards, developing internal data collection systems, and preparing for assurance audits. Their interdisciplinary team includes experts in environmental policy, financial analysis, and regulatory compliance.
According to the company, early preparation and strategic planning are vital. Businesses that treat sustainability reporting as a compliance exercise alone may struggle to deliver meaningful, integrated disclosures. In contrast, those that embed sustainability into their core operations can generate long-term value and unlock reputational gains.
Why TSRS Matters for Türkiye’s Economic Future
The TSRS represents more than a bureaucratic requirement — it signals Türkiye’s ambition to compete in global markets where ESG credentials are increasingly non-negotiable. Exporters, especially those supplying European clients, are now expected to demonstrate compliance with environmental and social standards, including carbon transparency.
Türkiye’s alignment with sustainability reporting also boosts the credibility of domestic companies in attracting foreign investment. Financial institutions and global investors are now screening portfolios based on ESG ratings. A transparent, independently verified sustainability report enhances a company’s attractiveness to capital markets.
Opportunities for First Movers
While the new standards pose compliance challenges, they also create strategic opportunities. Companies that act early can differentiate themselves as ESG leaders in Türkiye and the wider region. Early compliance not only reduces legal risk but can also attract impact investors, secure green financing, and build consumer trust.
In sectors such as renewable energy, sustainable agriculture, and green manufacturing, robust sustainability disclosures can provide a competitive edge in international procurement and supply chain partnerships.
Challenges Ahead in Implementation
Despite the benefits, many companies still face hurdles. Common challenges include:
Lack of internal expertise on ESG metrics
Insufficient data infrastructure for tracking emissions and other indicators
Difficulty interpreting new regulatory language
High costs associated with independent assurance services
Consulting firms like Sistem Global help bridge these gaps by offering tools, training, and industry-specific guidance. However, there is still a pressing need for broader awareness campaigns, capacity building, and regulatory clarity to ensure smooth sector-wide implementation.
What Lies Beyond TSRS 1 and 2
The current TSRS framework is only the beginning. Additional standards addressing biodiversity, water use, human capital, labor rights, and supply chain ethics are expected in future regulatory updates. This will further expand the scope of ESG accountability in Türkiye.
Moreover, integration with global frameworks such as the EU’s Corporate Sustainability Reporting Directive (CSRD) or the Task Force on Climate-related Financial Disclosures (TCFD) is anticipated. Turkish companies aiming to remain competitive in international markets must prepare to meet these rising expectations.
Conclusion Without a Label
The introduction of Türkiye Sustainability Reporting Standards marks a new era in corporate responsibility. As businesses rush to meet the August deadline, the country takes a bold step toward aligning its economy with global sustainability norms.
Whether driven by regulatory necessity, investor pressure, or genuine commitment to ethical growth, the message is clear — sustainability is no longer optional. It is a strategic imperative, and the companies that embrace it early will be the ones shaping Türkiye’s resilient, future-facing economy.
