Turkey’s new TSRS standards are ushering in a transformative era for sustainability reporting.
Called the Türkiye or Turkish Sustainability Reporting Standards, TSRS is a regulatory framework that establishes consistent, comparable, and auditable sustainability reporting standards for Turkish companies.
Whether you're a domestic company or an EU-based business with operations in Turkey, understanding the TSRS meaning, requirements, and reporting expectations is critical to achieving long-term sustainability.
This article covers everything from TSRS compliance best practices and timelines to software solutions and alignment with global frameworks like ESRS, ISSB, and CDP.
What is TSRS?
TSRS, or Turkey Sustainability Reporting Standards, is Turkey’s official set of sustainability reporting standards, developed by the Public Oversight, Accounting and Auditing Standards Authority (KGK). They were published in the Turkish Official Gazette in 2023 and enacted shortly thereafter.
These standards align with the EU’s ESRS to ensure Turkish companies are globally competitive and transparently disclosing their ESG performance and any climate-related disclosures. This includes greenhouse gas emissions across Scope 1, Scope 2, and Scope 3 (including things like precious metals).
For certain companies, TSRS is required: this includes specific investment institutions or those meeting a certain level of financial performance.
Role of Borsa Istanbul and Turkish capital market institutions in TSRS compliance
While TSRS is primarily enforced by the Public Oversight, Accounting and Auditing Standards Authority (KGK), both the Capital Markets Board (CMB) and Borsa Istanbul have played key roles in implementation.
Capital Markets Board (CMB) and TSRS oversight
The CMB supports the integration of TSRS into Turkey’s financial reporting system. It supervises:
- Joint stock companies and finance companies issuing capital market instruments
- Application of threshold values that define TSRS reporting obligations
- Alignment of TSRS with broader governance and risk disclosure rules
Borsa Istanbul Markets: TSRS expectations for listed companies
Companies listed on Borsa Istanbul, Turkey’s stock exchange, must publish TSRS-aligned sustainability reports if they meet specific financial or size criteria.
Key impacts include:
- Mandatory disclosures under TSRS 1 and TSRS 2
- Stronger investor confidence and ESG transparency
- Global alignment with frameworks like ISSB and IFRS
- Greater competitive advantage in attracting sustainable capital
Board-level accountability and governance
TSRS requires active involvement from boards and executive teams. Companies must:
- Approve sustainability strategies and materiality assessments
- Disclose sustainability-related risks and comparative information
- Ensure board decisions reflect long-term ESG accountability
This reinforces TSRS as a framework rooted in transparency, governance, and investor trust.
Above all else, TSRS is a national framework designed to regulate Turkish sustainability reporting that was modeled after international frameworks like ESRS and ISSB. It was, however, drafted in response to growing stakeholder demand for transparency, consistency, and comparability
TSRS marks a pivotal move toward aligning Turkish standards with evolving global disclosure practices.
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TSRS reporting periods and timeline
Understanding the TSRS reporting periods and deadlines is essential for companies to comply without delays.
Companies will be required to publish sustainability reports in line with TSRS standards annually—meaning systems and processes must be put in place quickly.
Key TSRS reporting milestones
- 2023 – The Turkey Sustainability Reporting Standards (TSRS) were officially published by the Public Oversight, Accounting and Auditing Standards Authority (KGK).
- 2024 – The first reporting period begins. Companies within the scope must begin collecting sustainability data in line with TSRS 1 and TSRS 2 requirements.
- 2025 – The first TSRS-aligned sustainability reports and general-purpose financial reports are due, covering the 2024 reporting year. This applies to companies that meet the current threshold criteria (e.g., large public interest entities).
- 2026 and beyond – The scope of TSRS will expand to include more companies, including mid-sized firms and additional sectors, as Turkey phases in broader adoption of sustainability reporting requirements.
Who needs to report under TSRS?
Initially, TSRS applies to public interest entities (PIEs) and companies meeting at least two of the following criteria:
- 250 or more employees
- Over Turkish Liras (TL) 1 billion in annual net sales revenue/net turnover
- TL 500 million or more in total assets
The Public Oversight Authority has announced that future expansions will increase the number of companies subject to TSRS. Companies not currently in scope should treat this period as a preparation window.
TSRS reporting differences across financial entities
The Turkey Sustainability Reporting Standards (TSRS) apply across all financial entities that meet the defined thresholds for reporting. However, the way each entity approaches disclosure—and which topics are considered material—varies depending on their structure, activities, and risk exposure. Here’s how reporting priorities differ across key types of financial institutions.
Portfolio management companies
Portfolio management firms oversee investments on behalf of clients, which means their primary TSRS focus lies in integrating ESG considerations into investment strategy.
These firms must report on how sustainability risks and opportunities influence portfolio decisions and how their governance structures support responsible stewardship. Disclosures often include the long-term value implications of ESG factors and how clients’ interests are protected.
Asset management companies
Asset managers typically oversee mutual funds, pension funds, or collective investment schemes. Under TSRS, they are expected to report not only on internal sustainability practices but also on the ESG performance of the products they manage. These firms must demonstrate how ESG is incorporated into fund design, selection, and performance monitoring, and disclose sustainability-related risks to investors.
Factoring companies
Factoring companies provide short-term financing by purchasing accounts receivable. Their TSRS reporting will likely focus on credit risk, exposure to vulnerable sectors, and policies around sustainable lending. Because many of their clients are small and medium enterprises (SMEs), disclosures may also highlight efforts to promote sustainability in the SME ecosystem.
Financial holding companies
As umbrella institutions, financial holding companies must take a consolidated approach to TSRS. They are responsible for reporting ESG policies and risks at the group level while also ensuring consistency and comparability across subsidiaries. These entities must provide a clear view of how sustainability is governed across the organization and how risks and opportunities are assessed across different lines of business.
Leasing companies
Leasing companies provide financing for vehicles, machinery, and other long-lived assets. Their TSRS obligations often center on the sustainability of leased assets, including their emissions footprint and end-of-life impact. These firms are expected to disclose how environmental considerations are factored into asset selection, customer contracts, and financing terms.
Pension companies
Pension companies manage retirement savings over long time horizons, making long-term climate and social risks particularly material. Under TSRS, they must demonstrate how ESG risks are incorporated into investment strategies and fiduciary decision-making. Disclosures should also cover how sustainability influences the expected performance and security of pension assets, with particular attention to intergenerational fairness and regulatory alignment.
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Understanding TSRS 1 and TSRS 2: The core of Turkey Sustainability Reporting Standards
At the heart of the TSRS framework are two foundational standards: TSRS 1 (General Requirements for Sustainability Reporting) and TSRS 2 (General Disclosures). These form the structural and conceptual basis for all Turkish sustainability reports moving forward.
Together, TSRS 1 and TSRS 2 closely mirror IFRS S1 and IFRS S2, reflecting Turkey's alignment with EU regulatory frameworks while ensuring compatibility with national legislation and oversight mechanisms.
TSRS 1: General requirements for sustainability reporting
TSRS 1 lays out the overarching principles that companies must follow when preparing their sustainability disclosures. It defines how Turkish organizations should structure their reports, approach materiality, and maintain data quality.
Key components include:
- Financial materiality
- Explanation of reporting boundaries
- Requirement for using structured and machine-readable formats
- Integration with financial reporting systems
- Interoperability with frameworks like ISSB and GRI
- Disclosure of sustainability-related financial information
- Financial statements
TSRS 1 also outlines the use of sector-specific standards, which are expected to follow in later phases of the TSRS rollout.
TSRS 2: General provisions
TSRS 2 specifies the essential sustainability information every company must include in its report, regardless of which environmental, social, or governance topics are deemed material.
This includes:
- Company strategy and sustainability governance structure
- Number of employees
- Risk and opportunity disclosures
- Policies and targets related to Turkish sustainability priorities
- Metrics and KPIs to monitor progress over time
TSRS 2 ensures a minimum level of transparency across all reporting entities and establishes the foundation for topic-specific disclosures (e.g., climate, biodiversity, labor practices) that will follow.
By embedding TSRS 1 and TSRS 2 into your sustainability strategy, your organization lays a compliant foundation for the broader Turkey Sustainability Reporting Standards. These two standards act as the Turkish equivalents of international general disclosure frameworks, ensuring that companies can meet both domestic and global expectations.
For companies using software platforms like Pulsora, TSRS 1 and 2 requirements can be pre-integrated into reporting workflows, ensuring:
- Automated alignment with disclosure mandates
- Real-time validation for TSRS standards
- Audit-ready data formatting
Best practices for TSRS compliance
1. Conduct a materiality assessment
TSRS requires companies to evaluate materiality through both an impact and financial lens. Start here.
2. Centralize Turkish sustainability data collection
You’ll need accurate, complete, and traceable data across all ESG categories. A centralized platform ensures consistency.
3. Leverage cross-framework alignment
Avoid duplicative work by linking your TSRS report to other existing disclosures:
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4. Ensure audit-ready disclosure
TSRS reports must be prepared with future assurance in mind — limited assurance is already on the horizon.
Key features your platform should include:
- Full audit trail and documentation history
- Automated data lineage
- Role-based controls and approval chains
- Templates built for auditing standards authority expectations
5. Use technology to manage reporting periods and TSRS reporting process
Reporting periods under TSRS will follow a consistent calendar, and companies must retain traceable records year over year. Manual tracking will no longer suffice, and software is critical for audibility and transparent data lineage.
Why Turkish companies — and all European companies — should act now
While TSRS is being rolled out in phases, there is strong indication that mandatory sustainability reporting will soon apply to many more Turkish entities, especially those seeking foreign investment or public listings.
Companies that begin aligning with TSRS standards now will gain:
- Competitive advantage in transparency
- Stronger risk management infrastructure
- Better access to capital and ESG ratings
- Streamlined readiness for European directives like CSRD
The role of software in TSRS compliance
Modern ESG and carbon accounting software is the linchpin of successful TSRS reporting. With the breadth and depth of disclosures required under TSRS 1 and TSRS 2 — not to mention the need to align with overlapping frameworks like ESRS and ISSB — organizations need a solution that does more than just collect data. They need a platform that supports reporting, assurance, and strategy, all in one place.
All-in-one platform for carbon, ESG, and regulatory data
Pulsora consolidates all sustainability performance-related data across emissions (Scope 1, 2, and 3), ESG metrics, and compliance documentation into a single platform.
This eliminates the need for disconnected spreadsheets or siloed tools and ensures consistency across internal teams, subsidiaries, and reporting cycles.
Framework mapping to TSRS and other annual reporting frameworks
With built-in framework mapping, Pulsora allows you to input data once and report across multiple regulatory and voluntary standards, including TSRS, ESRS, ISSB (IFRS S1/S2), and CDP.
This interoperability reduces duplication and accelerates reporting timelines, especially for multinationals or companies subject to dual regulatory regimes.
Purpose-built for public oversight and auditing standards
Pulsora is designed to meet the needs of regulators and auditors, with robust version controls, audit trails, and documentation logs. This ensures that sustainability reports are not only compliant but also assurance-ready, whether for limited assurance today or reasonable assurance in the near future.
Configurable dashboards for Turkish operations
Companies operating in Turkey can tailor dashboards to reflect TSRS-specific requirements, material topics, and performance indicators.
Whether you're reporting on Turkish legal entities, business units, or joint stock companies, the platform allows localized views that feed into global reporting efforts.
Integrated controls for stakeholder engagement and signoff
Pulsora enables structured collaboration across functions, with built-in workflows for stakeholder engagement, role-based access, and executive approvals. This supports the governance expectations embedded in TSRS—ensuring that sustainability reporting is embedded in corporate decision-making, not just a compliance checkbox.
Manage your Turkish Sustainability Reporting Standards with Pulsora
TSRS isn’t just a regulation: it’s a roadmap for embedding sustainability into the heart of corporate governance in Turkey.
Organizations that embrace TSRS with robust systems, data-driven reporting, and cross-framework alignment will position themselves as ESG leaders in Turkey and across global markets.
Make reporting your competitive edge.
Book a demo with Pulsora and simplify your TSRS standards today.
