Sustainability has evolved beyond the traditional focus on managing environmental impacts. Today, it has become a strategic priority that influences corporate governance, risk management, and long-term competitiveness.

As a result, sustainability reporting has become increasingly important for organizations. The Turkish Sustainability Reporting Standards (TSRS), introduced in Türkiye, aim to enable organizations to report their sustainability-related information in a more transparent, consistent, and comparable manner.

What Are the Turkish Sustainability Reporting Standards (TSRS)?

The Turkish Sustainability Reporting Standards (TSRS) provide a framework for organizations to report their environmental, social, and governance (ESG) performance in a transparent and comparable manner.

The standards consist of two main components aligned with IFRS S1 and IFRS S2, which were issued under the IFRS Sustainability Disclosure Standards.

Why Are the Turkish Sustainability Reporting Standards Important?

By supporting strategic transformation and improving the transparency of sustainability performance, TSRS also contributes to strengthening corporate governance.

Implementing TSRS offers organizations several important benefits, including:

• Strengthening investor confidence

• Enhancing corporate transparency

• Facilitating access to sustainable finance

• Improving competitiveness in international markets

• Enabling more effective management of climate-related risks

How Should the TSRS Compliance Process Be Managed?

Achieving compliance with TSRS requires organizations to integrate sustainability into their corporate processes. This includes establishing an appropriate governance structure, implementing reliable data collection processes, assessing climate-related risks and opportunities, and integrating sustainability information with financial reporting.

A successful TSRS compliance process begins with assessing the organization's current state and identifying its reporting obligations under TSRS. Organizations should then establish sustainability key performance indicators (KPIs), conduct climate-related risk and opportunity assessments, implement the necessary improvements, and maintain regular sustainability reporting processes.

A well-planned compliance process supports both regulatory compliance and the effective management of sustainability performance.

What Is the Difference Between TSRS and GRI?

Although TSRS and the Global Reporting Initiative (GRI) are both widely recognized sustainability reporting frameworks, they differ in their objectives and primary focus.

TSRS is designed to provide sustainability-related information that is relevant to investors and other financial stakeholders by integrating sustainability disclosures with financial reporting. Accordingly, it is based on a financial materiality approach and is aligned with IFRS S1 and IFRS S2.

GRI, on the other hand, is an international sustainability reporting framework that focuses on helping organizations disclose their economic, environmental, and social impacts to a broader range of stakeholders.

Organizations may choose to apply both TSRS and GRI to establish a more comprehensive sustainability reporting approach.

Conclusion

Sustainability reporting has become an essential management tool for demonstrating an organization's long-term resilience, risk management capabilities, and sustainability strategy.

For this reason, it is essential to establish a robust data management infrastructure, develop governance structures aligned with TSRS requirements, and implement well-planned sustainability reporting processes.

You can manage your TSRS compliance journey with the expertise of A&A Consulting.