Sustainability Glossary

The total greenhouse gas emissions caused by a company, product or activity, measured in carbon dioxide equivalent (tCO₂e).

Offsetting emissions for a given period with carbon credits, regardless of the level of reduction. A narrower concept than net zero.

The EU Carbon Border Adjustment Mechanism. It requires embedded carbon emissions in imports of products such as iron and steel, aluminium, cement, fertilisers, electricity and hydrogen to be reported and priced.

A global disclosure platform and rating system through which companies report on climate change, water and forests on behalf of investors and customers.

The EU Corporate Sustainability Due Diligence Directive. It requires large companies to identify and manage human rights and environmental risks in their value chains.

The EU Corporate Sustainability Reporting Directive and the European Sustainability Reporting Standards used under it. Besides EU companies, they indirectly affect Turkish companies in their supply chains.

Assessing an issue both for its effect on the company’s financial performance (financial materiality) and for the company’s impact on people and the environment (impact materiality).

A sustainability rating assessing companies on environment, labour and human rights, ethics and sustainable procurement, often requested in supply chain relationships.

Environmental, Social and Governance. The framework investors and stakeholders use to assess a company’s sustainability performance.

Overstating the environmental benefits of a company or product. Regulators are increasingly scrutinising such claims.

Developed by the Global Reporting Initiative, the most widely used standards worldwide for reporting a company’s economic, environmental and social impacts.

The International Sustainability Standards Board and its standards. S1 covers general sustainability disclosures and S2 covers climate-related disclosures.

The process of identifying the sustainability topics most critical to a company and its stakeholders. It forms the basis of strategy and reporting.

Deeply reducing emissions across the value chain in line with science-based targets, and balancing the small remainder with permanent carbon removals.

The Science Based Targets initiative, which validates whether companies’ emission reduction targets are aligned with the Paris Agreement.

The three categories of emissions under the Greenhouse Gas Protocol. Scope 1 covers sources a company directly controls (fuel, vehicle fleet), Scope 2 covers purchased electricity and heat, and Scope 3 covers all other indirect emissions across the value chain, such as the supply chain and product use.

Systematically gathering the views of stakeholders such as employees, customers, investors, suppliers and communities, and reflecting them in company decisions.

A loan whose interest or cost terms are tied to the company achieving predefined sustainability performance indicators (KPIs).

Financing for projects and companies with environmental and social benefits, including green loans, green bonds and sustainability-linked loans.

Turkish Sustainability Reporting Standards. Issued by Türkiye’s Public Oversight Authority (KGK) based on the ISSB standards (IFRS S1 and S2) and mandatory for certain companies.