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?
Mandatory scope is limited to the categories listed in the KGK Board decision of 27 December 2023 (Official Gazette of 29 December 2023, No. 32414 repeated issue): companies traded on Borsa Istanbul and other entities regulated by the Capital Markets Board, non-bank financial institutions regulated by the BDDK, insurance, reinsurance and pension companies, and entities licensed to operate on Borsa Istanbul markets. An entity in these categories is in scope when it exceeds at least two of the following thresholds in two consecutive reporting periods. The thresholds were reset by the KGK decision published in the Official Gazette on 16 January 2026 for financial years starting on or after 1 January 2025:
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
- Banks and non-bank financial institutions whose shares are not traded on Borsa Istanbul and that have no more than one branch or 250 employees: reporting optional for the first two reporting periods, while the Scope 3 exemption lasts (Official Gazette, 18 December 2024)
- Removed from mandatory scope: companies issuing only non-equity capital market instruments without a public offering and companies on the Watchlist and Venture Capital markets (18 December 2024), and portfolio management companies (KGK Board decision, 14 August 2025)
- Companies outside these categories, including Turkish subsidiaries of international groups, are not in mandatory scope; TSRS is voluntary for them
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. The TSRS 2 amendments on greenhouse gas emissions disclosures (Official Gazette, 28 July 2026), Türkiye’s adoption of the ISSB’s amendments to IFRS S2, apply to reporting periods beginning on or after 1 January 2027.
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. Mandatory scope is limited to the entities listed in the KGK Board decision: companies traded on Borsa Istanbul and other entities regulated by the Capital Markets Board, non-bank financial institutions regulated by the BDDK, insurance, reinsurance and pension companies, and entities licensed on Borsa Istanbul markets, when they exceed at least two of three size thresholds in two consecutive reporting periods. Banks are in scope regardless of size. Other companies may apply TSRS voluntarily.
Who is in scope, and do Turkish subsidiaries of international groups count?
Entities in the listed categories that exceed at least two of three thresholds (total assets TRY 1 billion, net sales TRY 2 billion, 500 employees) in two consecutive reporting periods, under the thresholds published in the Official Gazette on 16 January 2026; banks regardless of size. A Turkish subsidiary of an international group is in mandatory scope only if it belongs to one of these categories; otherwise TSRS is voluntary for it.
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, which matters because TSRS reports are subject to limited assurance from the first reporting year.
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 October 2026 (KGK Board decisions in the Official Gazette of 29 December 2023, 5 September 2024, 18 December 2024, 16 July 2025, 16 January 2026 and 28 July 2026; Omnibus I Directive (EU) 2026/470). See the Türkiye climate regulation timeline for current dates.