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Abstract
The global transition toward sustainability reporting has accelerated significantly following the introduction of IFRS S1 (General Requirements for Disclosure of Sustainability-related Financial Information) and IFRS S2 (Climate-related Disclosures) by the International Sustainability Standards Board (ISSB). This study focuses on Turkey’s electricity generation sector, a carbon-intensive and highly regulated industry that serves as a critical testing ground for evaluating the practical challenges of applying these global sustainability standards in an emerging market context. Using a qualitative, document-based approach, the research examined publications by the IFRS Foundation, IOSCO, IAASB, and EFRAG (2021–2025), together with the 2023 sustainability reports of twelve Turkish electricity generation companies. The analysis explored four key dimensions: corporate capacity and governance, data measurement and consistency, assurance mechanisms, and digital reporting infrastructure. Findings reveal that although regulatory alignment with IFRS S1–S2 has been substantially achieved through national initiatives such as the Draft Turkish Sustainability Reporting Standards (TSRS), implementation challenges persist due to limited institutional capacity, inconsistencies in Scope 3 emission data, reliance on limited assurance under ISAE 3000 (Revised), and underdeveloped digital systems. While all firms disclose Scope 1 emissions, only 33% report Scope 3 data, and just 15% utilize XBRL-based digital reporting platforms. To ensure effective implementation of IFRS S1–S2 in Turkey, the study recommends strengthening corporate governance structures, standardizing data frameworks, enhancing sustainability assurance through ISAE 3000 and the forthcoming ISSA 5000 standards, and accelerating digital integration via the IFRS Sustainability Disclosure Taxonomy. These measures will promote greater transparency, improve investor confidence, and enhance the comparability and credibility of sustainability reporting across Turkey’s energy sector.
