Sustainability Bulletin (Issue 5)

MESSAGES FROM TRASTA ESG

KEMALEDD?N D?LBAZ, CEO

Dear readers, we can understand the increasing interest in ESG activities from the consulting requests, questions and comments we receive from you, as well as the feedbacks from the seminars we organize or participate in. It is also apparent that the confusion surrounding ESG is slowly dissipating. For instance, we see that the approach of perceiving ESG solely as "environmental risks" is being abandoned, and businesses are beginning to focus on "social" issues as well. This is quite pleasing. We also strive to be drivers of this simplification and increased awareness, and to help our companies understand where they currently stand. This bulletin is being prepared with the aim of serving this purpose and has already reached its fifth issue. We hope you enjoy reading it.

?ZGüN ?INAR, CRO

We have noticed that the news flow related to sustainability has significantly grown in recent times. Scientists are conducting research one after another and sharing their findings with the public. One point that catches our attention in the news flow is as follows: With each new model developed, the risks and estimated damages associated with climate change are constantly increasing. This repeatedly reminds us of the importance and vitality of sustainability and the work we are doing. The principles of sustainability must be integrated into the lives of every country, every business and every individual. Only by doing so can we achieve a world where everyone can live in a dignified manner. Stay sustainable...

CLIMATE CHANGE ACTION PLAN

Turkey is preparing to take important steps in the fight against climate change. Covering the period of 2024-2030, the Climate Change Mitigation Strategy and Action Plan (CCMSAP) and the Climate Change Adaptation Strategy and Action Plan (CCASAP) have been developed through two years of meticulous work and can be implemented with the participation of the public sector, private sector, and civil society organizations.

The Climate Change Mitigation Strategy and Action Plan (CCMSAP) forms the basis of Turkey's climate policies. In line with the goals set by the Paris Agreement, it focuses on areas such as industry, energy, buildings, transportation, agriculture, waste and land use and defines 49 strategies and 260 actions. These strategies and actions have been determined with the participation of experts and stakeholders, providing a roadmap for Turkey to achieve its goal of reducing greenhouse gas emissions.

As known, the Paris Agreement aims to keep global warming below 2°C, compared to pre-industrial levels, and if possible, to limit it to 1.5°C. To achieve these targets, greenhouse gas emissions need to peak by 2025 and be reduced by 45% by 2030, compared to 2019 levels. Implementing the Paris Agreement requires economic and social transformation, and countries are expected to update their Nationally Determined Contributions (NDCs) every five years. Each new NDC is expected to be more ambitious than the previous one. 70 countries have already announced their long-term strategies. These strategies provide a long-term perspective for Turkey's NDCs and provide vision and direction to the country's development processes.

Turkey is taking important steps in terms of adapting to climate change as well. Turkey's Climate Change Adaptation Strategy and Action Plan (CCASAP) focuses on five important areas: Water resources management, agriculture and food security, ecosystem services, natural disaster risk management and human health. CCASAP prepared based on projections, includes a total of 40 strategies and 129 actions related to various sectors.

The evaluations made by the Intergovernmental Panel on Climate Change (IPCC) draw attention to the inevitable impacts of climate change. Therefore, adapting to the adverse effects of climate change is of vital importance, as well as reducing greenhouse gas emissions. This delicate balance in tackling climate change is also an important part of international treaties (such as the Paris Agreement). Adaptation can be defined as the process of strengthening and implementing strategies and policies to adapt to changing climate conditions and convert negative impacts into opportunities as much as possible.

These strategies and action plans are seen as a turning point in Turkey's fight against climate change. The plans, which will be implemented through strong collaboration between the public sector, private sector, civil society, and individuals, will be transparently monitored through online monitoring systems and the Climate Portal. The Climate Change Presidency will prepare monitoring and evaluation reports annually to assess the process and make revisions if necessary.

Almina Gencal, Sustainability Specialist

ESG NEWS

• China plans to “tighten supply in its national carbon market” to pressure large polluters to cut emissions, reports Bloomberg.?DETAIL
• Climate change will reduce global income by about 19% over the next 25 years, compared with a “fictional world that’s not warming”, reports the Associated Press. Poorest areas and those least responsible for climate change will take the “biggest monetary hit”, according to a new study by researchers at Germany’s Potsdam Institute for Climate Impact Research, it adds. The impact of climate change is already set to be $38tn a year by 2049 the study finds and, by 2100, the financial cost could hit twice what previous studies estimate, the article adds.?DETAIL

• Civil society experts and economists have said billions more in international aid must be pledged by governments, channelled through the World Bank, in order to tackle climate change, reports the Guardian.?DETAIL
• The United Arab Emirates has an arid climate and receives less than 100 mm of annual rainfall on average.? On April 17, the country experienced extraordinary rainfall, with approximately 256 mm of rain falling in Al-Ain, 100 km away from Dubai, in 24 hours.? This led to flood disaster.? It is claimed that the main reason for the heavy rainfall that caused the flood was due to "cloud seeding" technology as well as climate change. DETAY
• European judges have ruled that Switzerland has breached the human rights of its citizens by not doing enough to cut national greenhouse gas emissions, in a decision with wide implications for state action on climate change.?DETAIL

• In 2023, Europe removed a record 487 dams and other river barriers, according to a new report by Dam Removal Europe (DRE), a coalition of organizations including The Nature Conservancy, Rewilding Europe, Wetlands International and World Wide Fund for Nature (WWF).?DETAIL

• Among the revolutionary propulsion concepts to emerge from MTU is an electric propulsion system: the Flying Fuel CellTM (FFC). It is set to be deployed soon on short-haul routes in regional air traffic. As its efficiency improves, the flying fuel cell should be in operation on short- and medium-haul routes as of 2050, further reducing the climate impact of commercial aviation. DETAIL

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GREEN COLUMN

THOUGHTS ON A SURVEY

Bloomberg recently published the results of a survey called "European ESG Data Trends Survey 2024".

The study was conducted during face-to-face meetings (a large roadshow) in 7 major cities in Europe (London, Stockholm, Geneva, Amsterdam, Frankfurt, Paris, and Milan).

A total of 220 ESG data managers, ESG professionals, and Bloomberg clients participated in the research.

Some results seem quite interesting. For instance;

• When asked about their biggest priorities regarding ESG data, "complying with regulatory requirements" came in first place with 35%. "Managing climate risks and achieving net-zero targets" could only secure second place with 18%.
• When asked about the biggest challenge regarding ESG data, an overwhelming majority of 63% pointed out "the scope and quality issues in ESG data reported by companies".
• Another question was about the biggest challenge in ESG data management. 41% of the participants responded with "coping with constantly evolving and new data content", while 25% answered with "integrating ESG data scope with existing corporate data".
• ESG data management still seems to be an unresolved issue. Approximately one-third of the companies (38%) manage their ESG data centrally with a specialized solution, while 20% are still evaluating their data management strategies.

It appears that companies are putting significant effort not only into the quality and scope of ESG data but also into its management, and there is still a long way to go in this regard. Compliance with regulatory requirements still remains the top priority. We say remains, because the second-ranked priority, "managing climate risks and achieving net-zero targets," received only half as much support.

However, the primary goal of ESG activities is to "achieve a more sustainable world". This can only be possible by developing strategies that reduce greenhouse gas emissions along with other environmental impacts and effectively manage climate risks.

In conclusion, besides the quality of data, there is a need for a "mindset evolution" regarding why data is collected and in what way it can ultimately be used to achieve desired results.

?zgün ??nar, CRO

IMPORTANT CONCEPTS

ECOLOGICAL COLONIALISM

Ecological colonialism emphasizes the ecological dimension of "colonialism," which can be defined as a state or country directly taking control, exploiting, controlling, and governing other states, countries, or communities through official means, economically, politically, and culturally, resulting in the exploitation of natural resources, environmental destruction, and harm to biodiversity. Naturally, this results in the use of resources contrary to the interests of indigenous peoples, affecting their way of life and environment. Ecological colonialism is a complex phenomenon that encompasses not only economic but also environmental and social dimensions. It is considered as a process that emerges as the final stage of capitalism and imperialism in the present day.

WHO ARE WE?

Trasta ESG, is a consulting firm in Turkey that offers services such as gap analysis and sustainability consulting, providing businesses with the opportunity to determine their ESG score using a "Sustainability Assessment and Management Platform" designed according to international standards and tailored to different sectors.

Our motto is, "We are with you at every stage of your sustainability journey!"

You can explore our services in detail here and reach us through the links below.

Click for our corporate web site…

Telephone: +90 (216) 455 39 66

Email: [email protected]