Corporate Sustainability Reporting

What is Corporate Sustainability Reporting?

Sustainability reports are documents that explain the social, economic, and environmental performance of an organization’s products or services, as well as highlight goals and commitments. Corporate sustainability reporting involves reviewing the developmental processes in specific areas over different periods and necessitates new planning. These reports are published internationally, with approval from GRI (Global Reporting Initiative). Reporting can be done for any public, private sector, non-governmental organization, or institution.

Corporate Sustainability Reporting Process

The reporting is prepared based on the standards of the GRI (Global Reporting Initiative) and in collaboration with the United Nations Global Compact, widely preferred globally.

GRI standards include the necessary indicators for organizations to assess and report on their financial, environmental, and social performance. According to these indicators, a connection is established between the current situation of the institution's economic, social, and environmental conditions and the desired future state, leading to the creation of improvement strategies and plans. After the corporate sustainability report is created, consultancy services are provided to integrate the analysis and strategies into the management system.

Benefits of Corporate Sustainability Reporting

Identification of products, services, and activities that create value in financial, social, and environmental terms.
Comparison of sustainability performance with other companies in the industry and gaining a competitive advantage.
Enhanced brand image and reputation.
Systematic and managerial control.
Increased reliability with customers or stakeholders.
Access to social investment funds.
Creation of organizational culture.
Providing opportunities for the integration of emerging industry trends within the organization.
Increased employee motivation and potential work efficiency

Frequently Asked Questions FAQ

What is Turkey's Status in Terms of Climate Change?
Turkey has made significant strides in the fight against climate change in recent years. By ratifying the Paris Agreement in 2021, it announced a target of achieving net-zero emissions by 2053. The Nationally Determined Contribution (NDC) has been updated, renewable energy investments have increased, and the Green Deal Action Plan has been implemented. However, challenges such as dependence on fossil fuels, industrial emissions, and deforestation persist. With steps like carbon pricing mechanisms and incentives for sustainable production, Turkey aims to accelerate its transition to a low-carbon economy.
What is the European Green Deal (EU Green Deal)?
Climate change is a global threat, and countries are starting to implement their action plans by setting climate goals. In this regard, Europe has published the European Green Deal (EU Green Deal),which outlines its climate targets. In the deal released in 2019, Europe stated that it aims to become the first carbon-neutral continent by 2050. The deal emphasizes that Europe will develop a growth strategy to transform its industries and economy to achieve this goal. It also highlights that key sectors such as energy, transportation, agriculture, construction, and finance will be reshaped within the framework of climate goals.
What is the Importance of the European Green Deal for Turkey?
The European Green Deal is of critical importance for Turkey. As Turkey is a Customs Union partner with the EU, its commercial activities are highly dynamic. According to the Ministry of Trade's 2021 data, the European Union holds a 41% share of Turkey's $93 billion export, making it the largest partner in Turkey's total exports. Therefore, due to both the intensity of trade relations and the sustainable development goals, Turkey will also be part of the European Green Deal.
What is the Carbon Border Adjustment Mechanism (CBAM)?
The Carbon Border Adjustment Mechanism (CBAM) is a new carbon tax system by the European Union that will come into full effect in 2026. CBAM imposes additional costs on products with high carbon emissions, such as cement, steel, aluminum, fertilizers, hydrogen, and electricity, that are exported to the EU. The aim is to prevent carbon leakage and promote low-carbon production on a global scale. For countries like Turkey, which engage in intensive trade with the EU, the process of aligning with carbon emission reduction is of great significance.