Climate Change and Water Program 2022 Turkey Results

According to the "Climate Change and Water Program 2022 Turkey Results Report" from the environmental reporting platform Carbon Disclosure Project (CDP), the total financial impact of climate-related risks identified by companies stands at approximately USD 24 billion, while addressing these risks requires approximately USD 2.6 billion—roughly one-ninth of that amount. The report, prepared by CDP and overseen by Sabancı University Corporate Governance Forum since 2010 for Turkey studies, was unveiled at the "CDP Turkey 13th Climate Change Conference and Awards Ceremony" held in Istanbul. According to the report's findings, in 2022, there was a 21% increase in the proportion of companies disclosing environmental data under climate change, water security and deforestation programs. 95% of reporting companies in Turkey identified climate-related risks while noting that these risks have significant financial or strategic impact potential on their operations. While the total financial impact of climate-related risks identified by companies stands at approximately USD 24 billion, companies reported needing USD 2.6 billion—roughly one-ninth of that amount—to take measures against these risks. The risk factor most frequently reported by companies in Turkey was carbon pricing mechanisms.

"Significant increase in number of companies setting emission reduction targets"

Mirhan Köroğlu Göğüş, Project Manager of Sabancı University Corporate Governance Forum and CDP Turkey, evaluating the report's findings, said there has been a significant increase in the number of companies in Turkey setting emission reduction targets in alignment with the Paris Agreement. Göğüş stated, "In 2022, 29 companies in Turkey set Science-Based Targets. Eight of these targets were validated by the Science-Based Targets initiative. This number was only 1 in 2020." Noting an increase in the number of companies in Turkey setting longer-term targets covering 2030 and beyond, Göğüş said this situation is of great importance for achieving the Paris Agreement's objectives and limiting global warming to 1.5 degrees. Göğüş continued, "The targets established in our country are becoming increasingly ambitious in terms of the time period they cover. The percentage of companies setting absolute emission reduction targets for 2030 and beyond has increased nearly fourfold in the past two years. This change shows that more companies in recent years have grasped the urgency of combating climate change and have set more ambitious targets for this purpose."

"Mandatory sustainability reporting"

At the conference, the topic of mandatory sustainability reporting, which is becoming widespread worldwide and is planned to be implemented more effectively in Turkey, was addressed. Within the program framework, a panel was held on "The Evolution of Climate Change Reporting: From Voluntary to Mandatory Reporting," which was the main theme of this year's conference. At the panel moderated by Ata Can Bertay, Director of Sabancı University Corporate Governance Forum, speakers included Ji Yeon Kim, Senior Manager of Corporate Relations at CDP, Simon C.Y. Wong, Member of the Sustainable Management Advisory Board at Cambridge Institute for Sustainability Leadership, and Tomasz Gasinski, Director of Sustainability Services at Deloitte Central Europe. Source