Compliance Quarterly Türkiye

Global

An overview of human rights and environmental due diligence in EU  

Read the full article, "Human Rights Due Diligence in the EU."

LMA Draft Provisions for Green Loans: An overview 

Read the full article, "LMA Green Loan Rider – what you need to know."

ESG Loans Insights Reports Hub: Providing data across the Middle East, Europe and Asia-Pacific 

Read the full report, "Responsible Capital: An ESG loans insight report."

Türkiye

Regulation on Sustainability Audit is entered into force

The Regulation on Sustainability Audit (Regulation), regulating (i) the sustainability audit to be conducted mainly within the framework of the Turkish Commercial Code No. 6102, the Decree Law No. 660 on the Organization and Duties of the Public Oversight, Accounting and Auditing Standards Authority (Authority) or on a voluntary basis, (ii) the authorization and responsibilities of independent audit firms and independent auditors who will operate in the field of sustainability, (iii) supervision and audit by the Authority and (iv) the administrative sanctions to be with respect thereto, has entered into force on January 17, 2025. Accordingly, sustainability audits will be conducted by audit firms authorized by the Authority.

The criterion for authorization of audit firms is also in the Draft Regulation. Independent audit firms and auditors fulfilling the conditions shall be granted a certificate of authorization upon the approval of and registration with the Authority. 

The Regulation requires that sustainability audit reports be prepared in accordance with the Turkish Audit Standards (TDS) and signed by an auditor with at least 3 years of relevant experience, which needs to be submitted to the management body of the audited entity. Audit firms and auditors are legally responsible for damages resulting from non-compliance with the TDS or any inaccurate, incomplete, or misleading information in their reports. If violations are found during inspections or through complaints, the Authority can impose sanctions on the audit firm or auditor.

For further information, please read our article: "Draft Regulation on Sustainability Audit is submitted to public’s view."

Draft Green Taxonomy Regulation of Türkiye is submitted to public’s view

The Climate Change Presidency (Presidency) has submitted the draft Regulation on Türkiye Green Taxonomy Regulation (Draft Regulation) to public’s view. The Draft Regulation aims to regulate the principles and procedures of the Green Taxonomy of Türkiye to (i) support economic activities aligned with sustainable development goals, (ii) promote the flow of financing toward sustainable investments, and (iii) prevent greenwashing in the market.

Accordingly, entities and institutions required to perform sustainability reporting under the Sustainability Reporting Standards of Türkiye (Obliged Companies) will be subject to the Draft Regulation and submit verified information regarding their compliant economic activities conducted in the previous year to the Presidency’s Online Taxonomy Management System, in addition to the Sustainability Report to be prepared annually under the Sustainability Reporting Standards of Türkiye. The Obliged Companies are also expected not to intentionally or falsely mislead the public with an aim to create a climate-sensitive and environmentalist image (Greenwashing). Administrative fines will be imposed as per the Environmental Law No. 2872 upon the Obliged Companies that fail to fulfil their reporting obligations or that act in violation of the Greenwashing prohibition.

For further information, please read our article: "Draft Green Taxonomy Regulation of Türkiye is Submitted to Public’s View."