How will these changes affect the costs of companies?

Companies may need to make additional investments in their processes of measuring, monitoring, and reporting greenhouse gas emissions. This may initially lead to an increase in operational costs.

Is it 'mandatory' to disclose greenhouse gas emissions? Is there a penalty?

Yes, the disclosure of greenhouse gas emissions is mandatory under these standards. In the event of non-compliance with the legislation, sanctions may be imposed within the framework of the relevant legal regulations.

Do these standards concern only large companies?

Although the regulation generally covers all enterprises, it introduces more detailed and specific reporting requirements particularly for companies engaged in asset management, commercial banking, and insurance activities in the financial sector.

BOARD DECISIONS28 July 2026

Emission Requirement for Companies from the KGK

Official titleDecision of the Public Oversight, Accounting and Auditing Standards Board Dated 22/07/2026 and Numbered 75935942-050.01.04-[01/44275]

The Public Oversight, Accounting and Auditing Standards Authority (KGK), within the framework of alignment with international standards, has approved the TSRS 2 regulation containing the Amendments to Greenhouse Gas Emissions Disclosures. These amendments aim to ensure that enterprises report their greenhouse gas emissions in a more transparent manner and in compliance with international standards.

Details of the Regulation

This Board Decision has been taken by the Public Oversight, Accounting and Auditing Standards Authority (KGK) and approves the "Amendments to Greenhouse Gas Emissions Disclosures" added to TSRS 2 (Turkish National Accounting Standard 2) with the objective of ensuring alignment with international financial reporting standards. These amendments, issued by the International Sustainability Standards Board (ISSB) under the title "Amendments to IFRS S2: Amendments to Greenhouse Gas Emissions Disclosures," aim to standardize the disclosures regarding greenhouse gas emissions in the financial reports of companies in Turkey.

In the Decision, it has been resolved to incorporate these amendments into the legislation and to ensure their publication. The text mandates that enterprises express the greenhouse gas emissions they produce during reporting periods in metric tons of CO2 equivalent, disaggregate these emissions by their scopes (Scope 1, 2, and 3), and provide detailed disclosures particularly for Scope 3 emissions. Furthermore, transparency must be provided regarding the methods, metrics, targets, and assumptions used to measure greenhouse gas emissions. These regulations will contribute to a better understanding of climate-related risks and opportunities in financial markets.

The regulations introduce additional requirements for the disclosure of "financed emissions," particularly for enterprises operating in financial sectors such as asset management, commercial banking, and insurance. Within this scope, enterprises are expected to report the greenhouse gas emissions arising from their investment and lending portfolios and to explain the classification systems and methods used in this reporting. The Decision also sets out the date of entry into force and the transitional provisions of these amendments, aiming to facilitate the compliance process of companies.

REGAS Commentary

This decision is an important step towards increasing the role and transparency of companies in Turkey in the fight against climate change. Companies will now have to disclose not only their financial data but also their environmental impacts in greater detail in their financial reports. This will enable investors and other stakeholders to better assess the sustainability performance of companies. The new reporting obligations introduced particularly for companies in the financial sector are of critical importance in terms of directing financing towards climate-friendly projects.

Questions You Might Have

How will these changes affect the costs of companies?: Companies may need to make additional investments in their processes of measuring, monitoring, and reporting greenhouse gas emissions. This may initially lead to an increase in operational costs.
Is it 'mandatory' to disclose greenhouse gas emissions? Is there a penalty?: Yes, the disclosure of greenhouse gas emissions is mandatory under these standards. In the event of non-compliance with the legislation, sanctions may be imposed within the framework of the relevant legal regulations.
Do these standards concern only large companies?: Although the regulation generally covers all enterprises, it introduces more detailed and specific reporting requirements particularly for companies engaged in asset management, commercial banking, and insurance activities in the financial sector.

Key Terms

TSRS 2: It is the abbreviation for Turkish National Accounting Standard 2. It sets the accounting standards in Turkey in alignment with International Financial Reporting Standards (IFRS).
Sera Gazı Emisyonları: These are gases whose concentration in the atmosphere has increased with the industrial revolution and which lead to global warming. These include gases such as carbon dioxide (CO2), methane (CH4), and nitrous oxides (N2O).
Kapsam 1, 2, 3 Emisyonlar: Scope 1: Emissions arising from sources directly under a company's control (e.g., fuel combustion). Scope 2: Indirect emissions arising during the generation of electricity purchased by the company. Scope 3: All other indirect emissions occurring in the company's value chain (e.g., supply chain, product use, business travel).
Finanse Edilen Emisyonlar: These are greenhouse gas emissions arising from the activities of financed entities through the financing (loans, investments, etc.) provided by a financial institution (bank, insurance company, etc.).
Uluslararası Sürdürülebilirlik Standartları Kurulu (ISSB): It is the organization established under the International Accounting Standards Board (IASB), which sets international accounting standards, to develop global standards for sustainability reporting.

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