TSRS S2 · PHYSICAL CLIMATE RISK · TÜRKİYE
If your company operates in Türkiye (Turkey) and falls under TSRS, climate-related risks must now be reported with financial-statement discipline. We measure physical climate risk at asset level, financialize it through scenario analysis, and deliver report-ready, assurance-proof outputs.
Who is in scope?
Per the KGK decision published in the Official Gazette on 16 January 2026, companies incorporated in Türkiye are in scope for financial years starting on or after 1 January 2025 if they exceed at least two of the following in two consecutive periods:
Threshold test (2 of 3)
- Total assets: TRY 1 billion or more
- Annual net sales: TRY 2 billion or more
- Employees: 500 or more
- Exceeded in two consecutive reporting periods
Exceptions
- Banks: in scope regardless of size
- Temporary 2025-2026 exemption for some small financial institutions
- Companies listed on Borsa İstanbul are excluded from that exemption
- Turkish subsidiaries of international groups count if they meet the thresholds
What TSRS 2 requires on physical climate risk
Hazard exposure
Asset-level identification of exposure to acute (flood, storm, wildfire, hail) and chronic (heat, drought, sea-level) hazards.
Scenario analysis
Testing strategy resilience under different climate pathways (e.g. optimistic vs pessimistic for 2030/2050).
Financial effects
Translating risk into cash-flow, asset-value and profitability terms.
Metrics & targets
Disclosure of metrics — including GHG emissions — targets and governance.
From data to report: the Alkazar approach
UrClimate Score
Scores your facilities and portfolio at coordinate level across 182 countries; converts climate and catastrophe risk into financial metrics (AAL/PML). Explore the product.
UrClimate Next
For banks: measures and financializes physical climate risk across the credit portfolio (PD/LGD/DSCR), aligned with TSRS S2, EBA and BDDK. Explore the product.
Expert consultancy
From scenario selection to report language: we work alongside your sustainability and finance teams and leave audit-ready documentation behind.
How we work
Scoping & gap analysis
Threshold test, current reporting status and data inventory mapped against TSRS 2 requirements.
Data & scenarios
Asset-level hazard exposure, CMIP6-based projections, high-resolution downscaling.
Financialization
AAL/PML and PD/LGD metrics; prioritized assets and adaptation options.
Report & assurance support
Report-ready outputs in TSRS 2 structure, methodology documentation, support on auditor queries.
Frequently asked questions
What is TSRS?
The Türkiye Sustainability Reporting Standards (TSRS) are the national reporting framework issued by the Turkish Public Oversight Authority (KGK), built on the ISSB’s IFRS S1/S2. Reporting is mandatory for companies exceeding the thresholds; banks are in scope regardless of size.
Who is in scope — do Turkish subsidiaries of international groups count?
Companies incorporated in Türkiye that exceed at least two of three thresholds (total assets TRY 1 billion, net sales TRY 2 billion, 500 employees) in two consecutive periods — updated by the KGK decision published in the Official Gazette on 16 January 2026. This includes Turkish subsidiaries of international groups that meet the thresholds.
What does TSRS 2 require on physical climate risk?
Identification of exposure to acute (flood, storm, wildfire) and chronic (heat, drought, sea-level) hazards at asset level, scenario analysis under different climate pathways, assessment of financial effects, and disclosure of metrics and targets.
How does Alkazar support TSRS compliance?
Our UrClimate platforms score physical climate risk at coordinate level across 182 countries and financialize it (AAL/PML for corporates, PD/LGD for banks), while our consultants deliver report-ready outputs with an audit-defensible data trail — critical now that limited assurance is phasing in.
Is your physical climate risk data ready for TSRS?
Start with a scoping call — we’ll run your threshold test together and show sample outputs.
Regulatory information on this page is current as of July 2026 (KGK decision of 16 January 2026; Omnibus I Directive (EU) 2026/470).