Preparing a sustainability report varies depending on the sector of activity, the size of the company, whether it is publicly listed, and the regulatory framework.

• In Turkey: As of 2024, the Turkish Public Oversight Authority (KGK) has made the TFRS S1 and S2 standards mandatory for companies of a certain size that are subject to independent audit. Initially, large-scale companies are included within the scope, with plans to gradually expand the coverage.
• In the European Union: Under the CSRD (Corporate Sustainability Reporting Directive), large enterprises and publicly listed companies are legally required to prepare sustainability reports.
• For SMEs: While there is no direct legal obligation for SMEs working with global companies, reporting in areas such as EcoVadis, CDP, and carbon footprint has effectively become mandatory due to supply chain pressure.

Beyond regulatory pressure, preparing a sustainability report enhances corporate reputation, provides transparency to investors and financial institutions, increases access to green finance, and offers a competitive advantage in international markets. As a result, the number of companies voluntarily reporting is rapidly increasing, and the process is increasingly seen as a strategic management tool.

GRI (Global Reporting Initiative) is the most widely used voluntary sustainability reporting framework worldwide. It defines how corporate impacts (economic, environmental, and social) should be measured and reported. TSRS (Turkish Sustainability Reporting Standards), on the other hand, are legal standards published by the Public Oversight Authority (KGK) for financial and sustainability reporting in Turkey. The main difference is that GRI focuses more on measuring corporate sustainability and supporting stakeholder communication, while TSRS provides a reporting structure that is integrated with the financial system and subject to audit.

No, but they are closely related. ESG (Environmental, Social, Governance) is an assessment framework commonly used by investors to analyze a company’s sustainability performance. ESG is based on criteria related to environmental impact (E), social responsibility (S), and corporate governance (G). Sustainability reporting, on the other hand, is the process of publicly disclosing a company’s annual sustainability performance based on these ESG pillars. In other words, ESG criteria define the content of the report, while the sustainability report transparently documents this information.

EcoVadis and CDP are indicators of credibility and transparency, especially within supply chains.

• EcoVadis: Rates companies based on ESG criteria, and these scores are evaluated by purchasing companies (such as large multinational corporations). A high score increases participation opportunities in international tenders and builds customer trust.
• CDP: Primarily used to monitor companies’ environmental performance in areas such as carbon and water management, and to share this information with investors and the public.

Both are critically important for gaining a competitive advantage, building a sustainable brand image, and accessing green finance.