Public Oversight Accounting and Auditing Standards Authority Empowered to Determine Turkish Sustainability Reporting Standards
On November 2021, the IFRS Foundation announced the formation of the International Sustainability Standards Board (“ISSB“) under the IFRS Foundation at COP26, the UN global summit to address climate change. The ISSB was formed to develop comprehensive global reporting standards regarding sustainability so that investors can make informed investments decisions.
To be able to meet the global sustainability standards, through the Omnibus Law No: 7408 published in the Official Gazette on June 4, 2022; Article 88 of the Turkish Commercial Code No: 6102 was amended to grant the Public Oversight Accounting and Auditing Standards Authority the power to determine and publish Turkish Sustainability Standards compatible with the international standards.
In its reasoning regarding the relevant amendment, the lawmaker has emphasized the growing significance of accessing qualified and comparative information on the risks and opportunities in terms of sustainability during the investment decisions and its aim that the standards to be set by the relevant authority will serve for investors’ easy access to convenient information regarding sustainability during their decisions.
Please also see our previous client alert regarding Sustainability Principles Compliance Framework published by the Capital Markets Board.