MESSAGES FROM US

Dear Readers,

As global temperatures rise, drought is becoming an increasingly severe threat. This danger has the potential to disrupt not only agricultural production but also economies, societies, and long-term planning. In this issue, we address this critical risk and take a closer look at the recently enacted Climate Law an important piece of legislation that is set to fundamentally reshape how companies and our country approach sustainability and climate risks.

Through our bulletin, we invite you to join us on the path toward a more sustainable future.

Stay sustainable…

ÖZGÜN ÇINAR, CEO

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ESG NEWS

  • Atlantic ocean current collapse could trigger extreme cold. A groundbreaking study warns that a shutdown of the Atlantic’s crucial current system could bring catastrophic global impacts. Some regions might face temperature drops as severe as -55°F. DETAIL
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  • Europe’s once-reliable carbon-absorbing forests are turning into carbon sources due to climate stress, pest outbreaks, and excessive logging—endangering the continent’s climate goals. DETAIL
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  • The Basel Committee on Banking Supervision unveiled a long-anticipated framework for climate-related risk disclosures in the banking sector. While originally envisioned as a mandatory Pillar 3 structure, the final version remains voluntary due to U.S. influence, casting doubt on its regulatory impact. DETAIL
  • At the UN Ocean Conference, the Solomon Islands and Vanuatu revealed the Melanesian Ocean Reserve—the first Indigenous-led multinational marine protected area. DETAIL
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  • Eni’s subsidiary Versalis opened a pilot facility in Italy showcasing “Hoop”—a recycling technology converting mixed plastic waste into high-grade packaging materials. DETAIL
  • Rubicon Carbon introduced the Rubicon Rated Tonne (RRT), receiving a top-tier AAport score from BeZero Carbon under its portfolio rating system. DETAIL
  • Gender equality progress remains uneven: The World Economic Forum’s Global Gender Gap 2025 report highlights both incremental improvements and the persistent global distance from true gender parity. DETAIL
  • Wolters Kluwer adds ESG compliance tools:Two new modules now support EU CBAM compliance and integrate ESG metrics into enterprise planning and performance. DETAIL
  • Europe’s largest floating solar plant launches: In Perthes, France, Q Energy inaugurated a 74.3 MW floating solar farm atop former gravel pits. DETAIL
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🍃 GREEN COLUMN🍃

Climate Law: Toward a Nature-Compatible Future

Our planet stands at the threshold of a major transformation. As the impacts of the climate crisis become more tangible each day, sustainability is no longer a choice but a necessity. At this critical juncture, Türkiye has taken a significant step in the fight against climate change by enacting the Climate Law. In line with the country’s 2053 net-zero emissions target, this law initiates a multi-sectoral transformation, signaling a new era not only environmentally but also economically and socially.

At the heart of the law lies the goal of balancing and reducing greenhouse gas emissions caused by human activity. Guided by a vision of green growth, it encourages the national economy to progress in harmony with nature. Efficient use of natural resources, waste reduction, the transition to renewable energy, and energy efficiency are no longer just best practices—they are now legal obligations. From renewable energy and zero-waste policies to carbon footprint reduction and nature-based solutions, a wide array of initiatives will shape the upcoming sustainability agenda.

One of the most transformative aspects of the law is the introduction of an Emissions Trading System (ETS). Companies will now be required to operate under carbon emission permits, offset their emissions with carbon credits, and regularly report on their sustainability performance. With proper implementation, carbon emissions will move beyond being just an environmental concern and become central to economic decision-making. In other words, the true cost of environmental damage will now be directly reflected in the day-to-day decisions of businesses.

The logic of ETS is straightforward: each company must obtain allowances equal to the greenhouse gases it emits. These permits will be limited and traded in the market, essentially turning carbon emissions into a kind of “quota” system. This introduces a cost to harming nature. To support businesses during this transition, certain temporary regulations will apply. For example, during the pilot phase, companies that fail to fully comply with requirements may receive up to an 80% reduction in administrative penalties. Moreover, companies will have a 3-year transition period to adapt to the new system—extendable by another 2 years if necessary.

Companies may also choose to offset their ETS obligations through carbon credits, but these credits must be certified and approved by independent verification bodies to be valid. Investments in carbon reduction projects and carbon sinks that contribute to nature conservation will also be supported as part of the system. This is expected to boost interest and investment in green projects within the market.

The Climate Law also introduces a governance model where local governments play an active role. In every province, Climate Change Coordination Boards will be established under the leadership of the provincial governor. These boards will be responsible for preparing and implementing local climate action plans. This marks a shift where climate action becomes a shared responsibility between central and local authorities.

On the financial front, Türkiye’s Green Taxonomy will come into play. This system will help define environmentally friendly projects more clearly and enable investors to support them with greater confidence. Green bonds, sustainable funds, and private sector-led financing models will become much more visible. The banking and capital markets will begin to prioritize low-carbon and climate-friendly projects.

Of course, for all of these processes to function effectively, transparency is key. Businesses are now legally obligated to monitor, report, and verify their greenhouse gas emissions regularly. Those who fail to comply will face serious consequences. Companies that do not submit their reports may be fined between TRY 500,000 and 5 million. Companies operating without emission permits may face direct suspension of operations.

This transformation will not be easy. Especially for small and medium-sized enterprises, the process presents challenges such as increased costs, data infrastructure deficiencies, and limited access to new technologies. Within this context, ongoing debates continue around how responsibilities and roles should be distributed among policymakers, the private sector, and other stakeholders.

DAMLA GÜNALP, SUSTAINABILITY SPECIALIST

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