Turkey mandates sustainability reporting for certain financial institutions

The Public Oversight, Accounting and Auditing Standards Authority (KGK) has issued new regulations regarding greenhouse gas emission reporting in Turkey. The authority has revoked a provision that allowed certain banks and non-bank financial institutions to choose whether or not to prepare sustainability reports during periods when they were exempt from disclosing Scope 3 emissions.

The revoked provision applied to institutions not traded on Borsa Istanbul that met specific size criteria, namely having no more than one branch or fewer than 250 employees as of the end of the previous year. Under the new rule, these entities will no longer have the discretion to opt out of sustainability reporting during Scope 3 exemption periods.

These changes are set to take effect for reporting periods beginning on or after January 1, 2026. While the regulation tightens reporting requirements for specific financial entities, concurrent decisions have also aimed to expand transition facilities for other businesses to help them comply with the Turkey Sustainability Reporting Standards (TSRS) by 2027.