Regulation on Sustainability Audit
The Regulation on Sustainability Audit (Regulation) has entered into force after being published in the Official Gazette dated 17.01.2025 and numbered 32785.
The Regulation regulates the procedures and principles regarding the sustainability audit to be conducted within the framework of the Turkish Commercial Code and the Decree Law on the Organization and Duties of the Public Oversight, Accounting and Auditing Standards Authority, independent audit institutions, and independent auditors to operate in the field of sustainability. Important issues in the Regulation are summarized below:
- Detailed regulations on the purpose, scope, subject, parties, and criteria of the sustainability audit and the audit report have been stipulated.
- It is regulated that audit institutions will perform the sustainability audits within the framework of their authorizations and the procedures and criteria for authorization of audit institutions were determined. In addition, details on the authorization of the auditors who will take part in the audit teams and the sustainability auditor exam and applied vocational training, which is foreseen as a condition for this authorization were regulated.
- A special official register and announcement was contemplated for the authorization of audit institutions and auditors in the field of sustainability auditing.
- It is regulated that, as a result of the sustainability audit, a sustainability audit report will be prepared by the Turkish Auditing Standards (TAS), and the report will be signed by the responsible auditors on behalf of the audit institution. In addition, the conditions for being a responsible auditor and the details regarding the preparation and delivery of the report were stipulated.
- It is regulated that the Public Oversight, Accounting and Auditing Standards Authority (the Authority) will audit the sustainability audit activities of audit institutions, and the results of the review will be announced annually by the Public Oversight, Accounting and Auditing Standards Board (the Board) in a report. In addition, detailed regulations were introduced regarding the review and audit activities of the Authority.
- It is regulated that the Board will impose warning, caution, restriction of activity, suspension of activity permit and revocation of activity permit sanctions on those who carry out work and activities contrary to the regulations within this scope, as well as the details of these sanctions.
- The Board was authorized to impose lighter sanctions by considering the gravity of the act.
- It was determined that there is no administrative remedy against the Board's decisions and that the decisions will be recorded in the official registry. However, it was also emphasized that those concerned will be notified of the decisions and that the judicial remedy is open.
- It was emphasized that administrative sanctions will be imposed on audit institutions and responsible auditors whose violations of the legislation are detected, and that audit institutions and auditors are individually responsible for the damages that may arise because sustainability audit reports are contrary to the TAS and the information and opinions in these reports are incorrect, incomplete and misleading.
The Regulation has entered into force on the date of publication. However, with Provisional Article 1, some flexibility has been provided until the dates stipulated in the Regulation as to the conditions regarding the authorization of audit institutions, the conditions for becoming a sustainability auditor, the conditions for auditors authorized for sustainability audits and the conditions for responsible auditors.
All rights of this article are reserved. This article may not be used, reproduced, copied, published, distributed, or otherwise disseminated without quotation or Erdem & Erdem Law Firm's written consent. Any content created without citing the resource or Erdem & Erdem Law Firm’s written consent is regularly tracked, and legal action will be taken in case of violation.
Other Contents
The Regulation on Fluorinated Greenhouse Gases (Regulation) was published in the Official Gazette dated 15.10.2024 and numbered 32693. The Regulation on Fluorinated Greenhouse Gases published in the Official Gazette dated 29.06.2022 and numbered 31881 was repealed. The Regulation was prepared...
The Communiqué on the Implementation Procedures and Principles of the Green Transformation Support Program (Communiqué) has entered into force through publication in the Official Gazette dated 26.07.2024 and numbered 32613. The Communiqué sets out the principles and procedures for supporting...
Adopted on 24 April 2024 by the European Parliament, the Corporate Sustainability Due Diligence Directive ( Directive) was published on 5 July 2024 and entered into force on 25 July 2024. The Directive aims to extend the environmental and social obligations of companies to impact global supply chains...
On June 18, 2024, the European Banking Authority, the European Insurance and Occupational Pensions Authority, and the European Securities and Markets Authority (European Supervisory Authorities) published a joint opinion (Opinion) on the assessment of the Sustainable Finance Disclosure Regulation...
The Communiqué on the Widespread Use of Green Cement with Low Carbon Emissions in Public Procurement Contracts (Communiqué) is published in the Official Gazette dated 16.03.2024 and numbered 32491. The Communiqué will enter into force on 01.01.2025. According to the Communiqué, to encourage...