Corporate Sustainability and Sustainability Reporting in Türkiye

Yükseköğretim Kurumları Destekli Proje, BAP Araştırma Projesi, 2024 - 2026

The importance of sustainability reporting has grown exponentially in recent years, with stakeholders demanding greater

transparency and accountability regarding environmental, social, and governance (ESG) performance. The objective of this

project is to conduct a comprehensive examination of the sustainability reports of Turkish companies listed on BIST by analyzing

the quality, consistency, and alignment of sustainability reporting practices among these companies across various sectors

through time.

A recent development for Turkish companies is the introduction of the Turkish Sustainability Reporting Standards (TSRS) by the

Public Oversight, Accounting and Auditing Standards Authority (KGK) in December 2023. Starting in 2024, it is mandatory for the

companies exceeding the specified thresholds to prepare sustainability reports. These reports will be published in 2025 with

2024 data. While most of these companies have already been disclosing their ESG data through existing reporting frameworks,

2024 will mark the first year that they will report in accordance with the TSRS. Therefore, an analysis of their 2024 reports in

connection with previous reporting experience would be important to identify the best practices, trends, challenges, and

opportunities for Turkish companies.

The global infancy of sustainability reporting, coupled with numerous voluntary frameworks and reporting standards, alongside

the emergence of mandatory sustainability reporting standards in recent years, presents uncertainty and challenges for

companies endeavoring to report. Turkish companies are no exception in facing these challenges.

This study contributes to the literature by examining the current trends in sustainability reporting by Turkish companies in relation

to existing voluntary and mandatory internationally recognized frameworks. Therefore, the findings provide important implications

for researchers working on sustainability-related issues, companies that want to improve their sustainability reporting practices,

and policymakers who enact regulations in sustainability reporting.