The Procedures and Principles on Sustainability Reporting Have Been Published

Preparation of a sustainability report for companies that meet certain criteria within the scope of the Türkiye Sustainability Reporting Standards (“TSRS”), was made obligatory pursuant to the Board Decision of the Public Oversight, Accounting and Auditing Standards Authority (“the Board”) dated 27/12/2023 and numbered 21634, and the Board Decision dated 16/12/2024 and numbered 28294. Hence, the Procedures and Principles Regarding the Implementation Scope of TSRS (the “Procedures and Principles”) entered in force to ensure the accurate and consistent implementation of the said reporting obligation; clarify the criteria for identifying the companies that will fall within the scope of mandatory TSRS reporting, provide transparency regarding the calculation methods and to eliminate potential uncertainties in practice.

Along with the Procedures and Principles, detailed regulations have been introduced regarding the reporting thresholds and exemptions. Within this context, and as opposed to the previous decisions, following companies have become exempt from TSRS reporting obligation:

(i) joint stock companies that do not trade on the stock exchange or other organized markets but issue capital market instruments (other than shares) without a public offering (until the end of the fiscal period in which the issued instruments are redeemed), or that hold an approved issuance certificate with a valid term for such purpose; and (ii) companies whose shares are traded on Borsa Istanbul’s Watchlist Market or the Venture Capital Market for sale to qualified investors.

Furthermore, the criteria set out in the previous decisions have been clarified. It has also been clarified that the two criteria to be fulfilled in successive reporting periods do not necessarily have to be the same.