Compliance Quarterly Türkiye

Global

Climate change and the insurance industry: What next?

Climate change remains a critical issue for the insurance industry in 2024, with more frequent and severe natural disasters increasing physical risk exposures and the protection gap. Additionally, climate change litigation over non-renewable energy insurance is on the rise and insurers are facing scrutiny and protests from various environmental groups.

Read the full report, "Climate change and the insurance industry: What next?"

Carbon border adjustments in the EU and beyond

The EU Carbon Border Adjustment Mechanism (CBAM) is gradually coming into force.

Read more on how CBAM interacts with other jurisdictions.

The “just transition”: Human rights considerations in climate strategies

Climate strategies must incorporate a human rights approach. 

Read more about the new legislative developments on the topic in the EU and elsewhere.

Türkiye

Sustainability Reporting became applicable to a broader range of companies

A decision is published in the Official Gazette mandating certain businesses in Türkiye to conduct sustainability reporting from January 1, 2024 onwards. Banks, irrespective of these thresholds, must also comply. The Turkish Sustainability Reporting Standards (TSRS) aim to enhance corporate transparency and accountability in sustainability practices, fostering a more sustainable business environment in Türkiye. Accordingly, businesses surpassing two out of three specific criteria—namely, ₺500 million in total assets, ₺1 billion in annual net sales, or 250 employees over two consecutive reporting periods—must adhere to these standards.

While not mandatory, businesses outside the scope of the criteria may also voluntarily report in accordance with the TSRS. These regulations are designed to align Turkish businesses with global sustainability practices, promoting responsible resource use, environmental stewardship and social responsibility. Companies will need to disclose their ESG impacts, providing stakeholders with a clearer picture of their sustainability efforts and performance.

The TSRS framework includes comprehensive guidelines on how businesses should measure and report their sustainability impacts, promoting consistency and comparability across different sectors. By mandating these reports, the Turkish government aims to encourage more sustainable business practices, reduce environmental footprints and improve social welfare.