About Integrated Reporting Turkey

Who Are We?

Today, we see that the days when the performance of the company was evaluated only by the profits obtained are quickly left behind. Investors, seeing that environmental, social, and managerial risks and uncertainties directly affect company sustainability, have now started to demand information from companies regarding their non-financial performance.

This situation has caused companies to switch to non-financial reporting along with financial reporting. non-financial reports: It covers more comprehensive and detailed information than the financial information of companies such as corporate governance compliance statement, corporate social responsibility (CSR) report and sustainability reports.

History of Integrated Reporting

Integrated reporting dates back to the appointment of Mervyn King by Nelson Mandela in 1994 to establish the King Committee in order to encourage transparency and information sharing, and to alleviate the lack of confidence in South African institutions. In this process, thanks to the King I, King II, and King III reports, issued in, respectively, 1994, 2002 and 2009, have led companies to report the results of their social, environmental, and financial responsibilities, and report non-financial information in addition to financial information. After the King reports, the Johannesburg Stock Exchange required all listed companies to issue integrated reports, and for those failing that, to explain the reasons therefor (report or explain). Consequently, South Africa was the first country to order integrated reporting for listed companies.

Value Reporting Foundation

Our umbrella organization has officially merged with the International Integrated Reporting Council (IIRC) and the Sustainability Accounting Standards Board (SASB) in June 2021 under the name Value Reporting Foundation. Working closely with the IFRS Foundation and other leading framework providers and standard setters around the world, the Foundation's primary mission is to meet the growing recognition in markets that the ability of business to create value depends on more than financial capital, and to deliver a more consistent system of corporate reporting. With the integration of “Integrated Thinking Principles”, “Integrated Reporting Framework” and “SASB Standards”, it is to contribute to the development of a common understanding of corporate value by businesses and investors and to improve their value creation processes. The combined application of the Integrated Reporting Framework and SASB standards provides a complete picture of long-term corporate value creation while meeting investors' need for comparable, consistent, and reliable information.

International Sustainability Standards Board (ISSB)

In parallel with the needs and the global developments in corporate reporting ecosystems, the International Financial Reporting Standards (IFRS) Foundation made an official announcement for the establishment of the “International Sustainability Standards Board (ISSB)" at the UN Climate Change Conference (COP26) in 2021. According to this announcement, the Value Reporting Foundation (VRF), the Climate Disclosure Standards Board (CDSB) and the IFRS Foundation decided to combine their technical expertise and resources under the umbrella of the newly established ISSB with the aim of combining financial reporting and sustainability reporting under the same roof to meet the information needs of investors and to facilitate compliance with country-specific or broader stakeholder requirements. After the establishment of the ISSB, it is expected that the integrated reporting framework, that will be formed by the Value Reporting Foundation and other reporting standard and framework-setting organizations, will constitute the global reporting framework.

Integrated Reporting Studies in Turkey

The integrated thinking and reporting system, which became widespread with the establishment of IIRC under the leadership of Mervyn King in 2010, started to be followed closely in Turkey as well as in the world. In 2011, a working group was established by the Corporate Governance Association of Turkey (TKYD) and the Sustainable Development Association (SKD), and a study was initiated to raise awareness about integrated reporting in Turkey. TKYD acted as the contact point of IIRC in Turkey during this process.

The first concrete step in Integrated Reporting in Turkey was taken with the project presented and accepted by the Investment Environment Improvement Coordination Board (YOIKK) by Prof. Dr. Güler Aras through the TÜSİAD Working Committee in 2013. The publication titled "New Era in Corporate Reporting: Integrated Reporting", which was prepared within the scope of YOIKK 2014-2015 action plan to guide companies in Turkey on integrated reporting, was published by TÜSİAD as the first guidebook on the subject.

Foundation of ERTA

“Integrated Reporting Turkey Network (ERTA)” was established on October 21, 2015, following the Integrated Reporting Conference held by TÜSİAD. Under the chairmanship of Prof. Dr. Güler Aras (Independent Founding Member); the founding members of ERTA were TKYD, Borsa İstanbul, IIRC Turkish Ambassador, Argüden Governance Academy, Global Compact Network Turkey, Garanti Bank, SKD Turkey and Çimsa. ERTA was founded with the aim of enabling companies to report their non-financial information in an integrated manner with financial information and to promote integrated thinking.

Continuing its activities with the support and cooperation of all its members and stakeholders since 2015, in line with the strategy targets at ERTA Extraordinary General Assembly held in 2021; the Integrated Reporting Turkey Network has officially become an association with the support of 30 strong institutions as “founding members”. As of 2021, ERTA continues its value creation journey by increasing its effectiveness under the umbrella of “Integrated Reporting Association Turkey”.

Click here for ERTA Introduction Presentation

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