TSRS 1 & 2 Mandatory Sustainability Standards

TSRS 1 & 2 Mandatory Sustainability Standards: mandatory double-materiality ifrs s1/s2-aligned disclosure with scope 1, 2 and material scope 3 emissions and audit-backed assurance for large turkish entities.

Jurisdiction
Status
active
Category
First deadline
FY2024 first reporting year (published in 2025)
Who must comply
Applies to all banks (excluding SDIF-owned banks) and to public-interest entities meeting two of three thresholds for two consecutive years: total assets of at least TRY 500 million, annual revenue of at least TRY 1 billion, or at least 250 employees. Most listed companies, insurers and investment firms are also captured.
Penalties
Triple-price penalties under Turkiye's Emissions Trading Scheme, administrative fines from the KGK, and risk of delisting, reputational damage and criminal liability for misstatements.

What it is

TSRS 1 & 2 are Turkiye's mandatory sustainability standards, issued by the Public Oversight, Accounting and Auditing Standards Authority (KGK) as a transposition of the IFRS Sustainability Disclosure Standards (IFRS S1 and S2).

They mandate double materiality, climate scenario analysis and full Scope 1-3 emissions reporting with external assurance, positioning Turkiye among the first emerging markets with full-scope, audit-backed sustainability reporting.

Who must comply

Applies to all banks except SDIF-owned banks, and to public-interest entities meeting two of three thresholds for two consecutive years: at least TRY 500 million in total assets, at least TRY 1 billion in annual revenue, or at least 250 employees. Most listed companies, insurers and investment firms are also in scope.

What you must disclose

Entities must apply double materiality and disclose governance, risk management and ESG-linked strategy, metrics and targets across all material ESG topics, Scope 1, 2 and material Scope 3 GHG emissions, and scenario analysis with science-aligned transition plans. A separate sustainability report is filed with the KGK and published on the company website within nine months of fiscal year-end, with Board-level approval and a reasonable assurance audit from FY2025 reports.

Timeline

Introduced 29 December 2023 and effective from 1 January 2024 (last modified February 2024).

FY2024 is the first reporting year, published in 2025. Scope 3 disclosures and comparative data become mandatory for FY2025, and reports issued in 2026 are the first requiring a reasonable assurance audit.

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