Turkish Banking Green Asset Reporting Obligation
A major regulatory milestone has arrived for the Turkish financial sector. The Communiqué on the Calculation of Green Assets of Banks, published in the Official Gazette on April 11, 2025, officially introduces Turkey’s first Green Asset Reporting Obligation for banks. This new framework measures how effectively banks contribute to environmentally sustainable economic activities. At its core lies the Green Asset Ratio, a key performance indicator that reflects the share of eligible green assets in banks’ balance sheets. Under the Communiqué, banks must now establish robust systems for: 🔹 Documentation and classification 🔹 Monitoring and verification 🔹 Comprehensive sustainability reporting The Banking Regulation and Supervision Agency (BDDK) will oversee implementation and set the technical screening criteria for environmental objectives—including climate change mitigation, circular economy transition, biodiversity protection and pollution control. Why does thi...