Insights / Compliance

TSRS 2 and the data problem hiding inside climate compliance

Turkey's sustainability reporting standard now requires disclosing climate risk across a company's own assets. Most companies don't have the data to do that honestly.

Türkiye Sürdürülebilirlik Raporlama Standartları, the local adoption of ISSB's IFRS S1 and S2, stopped being voluntary in 2026. Its second standard, TSRS 2, is specifically about climate: a company has to describe how it manages climate-related risk and opportunity across its own operations, and as of this year that description is subject to independent assurance, not just a good-faith writeup.

That's a meaningful shift on paper. In practice, it exposes a gap almost every company with a physical footprint of any size actually has: nobody has scored their own sites. A retail chain knows its store count, its square footage, its lease terms. It generally does not know which of those stores sits in a heat-exposed area, which ones are near enough to green infrastructure to benefit from it, or which ones are in a seismic-priority zone. That information exists, in public and satellite data, but nobody has assembled it at the asset level, because doing that by hand for a portfolio of even a few dozen sites is a real research project, not a spreadsheet exercise.

The usual response to a new disclosure requirement is to hire it out as a one-time consulting engagement: a report, delivered once, describing the situation as of the day it was written. That works for a single filing. It doesn't work as a system, because the underlying exposure doesn't stay still. A city's green infrastructure changes. Building stock ages. A one-time PDF can't be re-run next year without paying for the whole engagement again.

The alternative is treating this as a data problem with a repeatable answer: a pipeline that scores an address the same way every time, cheaply enough to re-run annually rather than once, and specific enough per site that the output is actually usable by whoever has to sign the disclosure. That's a different kind of deliverable than a consulting report. It's closer to infrastructure a compliance team can rely on the way it relies on its accounting software, not a one-off assessment it commissions and files away.

That's the shape of problem this pipeline was built to answer, starting from a single pilot region and designed to generalise. If your team is looking at a TSRS 2 filing and doesn't yet know what its own portfolio looks like on this axis, get in touch.