< PreviousDisasters such as temperature increases, extreme weather events and forest fires continued to seriously threaten ecosystems and biodiversity in 2023, with climate change making its impacts felt in all areas of life. For this reason, the main agenda of 2023 included the uncertainties caused by climate change, the winds of change and agreements on actions on this issue. CLIMATE CHANGE AND NATURAL DISASTERS 2023 was the hottest year on record, driven by climate change and the El Niño weather phenomenon. The Copernicus Climate Change Service in the European Union announced that the global average temperature threshold of 1.5 C was exceeded for the first time at the beginning of 2024 2 . The IPCC’s VIth Assessment Report states that the global surface temperature has increased rapidly over the last 50 years and that this increase is due to anthropogenic activities. Serious losses in biodiversity have been recorded, while rising temperatures and extreme weather events threaten food and water security 3 . According to a report by the United Nations (UN) Food and Agriculture Organization (FAO), USD 3.8 trillion worth of agricultural crops and livestock products have been lost due to natural disasters in the last 30 years 4 . The drought has affected agricultural activities and daily life, as well as ship traffic. The slowdown in the passage of ships in the Panama Canal due to low tide caused disruptions in international trade. 2 https://climate.copernicus.eu/warmest-january-record-12-month-average-over-15degc-above-preindustrial 3 https://www.ipcc.ch/report/sixth-assessment-report-cycle/ 4 https://www.isoyesilblog.com/afetler-nedeniyle-son-30-yilda-38-trilyon-dolar-tarim-ve-hayvancilik-urunu-kaybedildi/ Türkiye and the World in 2023 GRI 2-22, GRI 3-3 ABOUT THE ISTANBUL CHAMBER OF INDUSTRY 2023 DEVELOPMENTS SUSTAINABILITY IN THE ISTANBUL CHAMBER OF INDUSTRY 28INTERNATIONAL SEARCH FOR SOLUTIONS-ENERGY The ever-increasing impact of climate change is bringing together scientists, politicians and civil society in search of a common solution. The transition to sustainable energy sources, efforts to reduce carbon emissions and the adoption of climate-friendly policies require global coordination and commitment. One of the most prominent international summits at this point was the 28th Conference of the Parties to the United Nations Framework Convention on Climate Change (COP28) held in Dubai, United Arab Emirates between November 30 and December 12. Issues such as reducing the use of fossil fuels, increasing renewable energy sources and expanding carbon capture/storage technologies were among the main agenda items of the COP28 summit. The agreement reached at the summit includes a goal to phase out all fossil fuels, while tripling renewable energies and doubling energy efficiency by 2030. On the other hand, hydrogen, one of the agenda items at COP28, is being addressed as an energy source that contributes to decarbonization for sectors without the possibility of electrification 5 . COP28 was held in Dubai, United Arab Emirates between November 30 and December 12, 2023. 5 https://www.tskb.com.tr/blog/surdurulebilirlik/cop-28-ve-yesil-hidrojen GRI 2-22, GRI 3-3 VALUES CREATED BY THE ISTANBUL CHAMBER OF INDUSTRY SUSTAINABILITY PERFORMANCE OF ISTANBUL CHAMBER OF INDUSTRY GRI CONTENT INDEX 29TECHNOLOGY AND DIGITAL TRANSFORMATION The World Economic Forum’s (WEF) Global Risks Report 2024 highlights the rapid increase in global challenges due to technological advances and economic uncertainties, while the 7 WEF’s “10 Emerging Technologies of 2023” report, prepared in collaboration with Frontiers, highlights technologies that could greatly benefit society and the planet in the next three to five years. The list includes environmental innovations such as sustainable aviation fuels and wearable plant sensors, as well as reengineering molecular biology 8 . Digitalization and innovative technologies also support companies to manage climate risks. Using IoT (Internet of Things) based devices such as weather stations and environmental sensors, real-time climate data can be collected at the local level. Using machine learning and artificial intelligence algorithms, advanced climate models can process collected high-dimensional climate data to identify trends, tendencies and correlations 9 . On the other hand, nature-based climate solutions stand out as an effective tool to combat problems such as climate change and biodiversity loss. These methods, which are notable for their social and economic impacts beyond their environmental impacts, support the participation of local communities and improve the living conditions of vulnerable groups 10 . Within the scope of climate finance, another prominent topic during COP28, developed countries demand developing countries to implement clean energy transition plans, which raises the question of who will finance the energy transition. The agreement on a Loss and Damage fund at COP28 was among the most important achievements of the year. It was announced that at least 100 billion dollars will be transferred annually until 2030. But uncertainties remain about the climate finance and adaptation resources that developing countries need. Climate finance is expected to be the main agenda of the COP29 summit in Baku in 2024 6 . 6 https://www.isoyesilblog.com/2023-kuresel-iklim-eylemleri-acisindan-onemli-gelismelere-taniklik-etti/ 7 https://www.weforum.org/publications/global-risks-report-2024/ 8 https://www.weforum.org/publications/top-10-emerging-technologies-of-2023/ 9 https://www.isoyesilblog.com/veri-yonetimi-iklim-stratejilerinde-onemli-rol-oynuyor/ 10 https://www.isoyesilblog.com/dogal-iklim-cozumleri-iklim-degisikligiyle-mucadelede-etkili-bir-yol-sunuyor/ GLOBAL CLIMATE FINANCE GRI 2-22, GRI 3-3 ABOUT THE ISTANBUL CHAMBER OF INDUSTRY 2023 DEVELOPMENTS SUSTAINABILITY IN THE ISTANBUL CHAMBER OF INDUSTRY 30THE FUTURE OF WORK K Green, digital and social transformation seems inevitable to achieve global goals and sustainability priorities. In this process, artificial intelligence technologies both automate labor markets and have the potential to increase productivity by equipping people with new skills. According to the World Economic Forum’s Future of Jobs Report 2023, sustainability, artificial intelligence and information security will be the areas where the most employment growth will take place. The report states that investments that support green transition in businesses, widespread implementation of environmental, social and governance (ESG) standards and localization in supply chains will have the greatest job creation impact 11 . In this context, according to the “Renewable Energy and Employment 2023 Report” published by the International Renewable Energy Agency (IRENA), the number of people working in the clean energy sector reached 13.7 million in 2022 12 . Although demand for green skills and workers in this field has been growing over the past five years, and renewable energy industries have created millions of new jobs, the growth in green jobs is twice as fast as the growth in the number of workers with green skills, according to the World Economic Forum. According to LinkedIn’s Global Green Skills 2023 Report, only one in eight people have skills related to climate change mitigation. A study by the Norwegian Institute of International Affairs shows that 68 percent of all energy education programs in the world focus on fossil fuels and only 32 percent on renewable energy 13 . 11 https://www.weforum.org/publications/the-future-of-jobs-report-2023/ 12 https://www.irena.org/Publications/2023/Sep/Renewable-energy-and-jobs-Annual-review-2023 13 https://www.weforum.org/agenda/2024/04/green-skills-gap-educational-reform-renewable-energy/ GRI 2-22, GRI 3-3 VALUES CREATED BY THE ISTANBUL CHAMBER OF INDUSTRY SUSTAINABILITY PERFORMANCE OF ISTANBUL CHAMBER OF INDUSTRY GRI CONTENT INDEX 31REGULATIONS IN INTERNATIONAL TRADE AND SUPPLY CHAINS 2023 was also a year in which trade came to the fore as an important element in the fight against climate change. The United Nations Conference on Trade and Development (UNCTAD) stated in a statement on the “Trade House Pavilion” established at COP28 that the link between trade and climate change has never been more evident and underlined the need for more cooperation on trade-based emissions reductions. They also emphasized the importance of trade in accelerating the energy transition and supporting low-emission development models 14 . In this context, the European Green Deal (EGD), in which a series of legal arrangements have been realized in the European Union (EU) towards climate targets ,15 is also expected to have significant impacts on international trade. In this regard, we are closely following developments in the Carbon Border Adjustment Mechanism (CBAM), which is part of the “Fit for 55” package under the European Green Deal. The EU CBAM Regulation has been implemented on a limited basis with a reporting obligation starting from October 1, 2023. Within the scope of the European Green Deal, which is of particular interest to exporting manufacturers, there were also important developments in circular economy and reporting in 2023. The Eco-design Regulation for Sustainable Products aims to make products longer lasting, more easily repairable and recyclable. The “Digital Product Passport” application, which will facilitate the sustainable product preference processes of consumers and businesses, will also benefit customs and market control authorities 16 . 2023 marked significant developments in global sustainability reporting standards. The European Sustainability Reporting Standards (ESRS) were published, covering environmental, social and governance issues, including climate change, biodiversity and human rights 17 . Agreement was also reached on the Corporate Sustainability Due Diligence Directive (CSDDD), which introduces new obligations to protect the environment and human rights, covering the operations of companies and the activities carried out by their business partners 18 . On the other hand, the International Sustainability Standards Board (ISSB), part of the International Financial Reporting Standards (IFRS) organization, published IFRS S1 and S2 to establish a global standard on sustainability 19 . In recent years, investors’ interest in nature conservation projects has been increasing in line with the importance of nature and biodiversity on the global agenda. 14 https://www.isoyesilblog.com/cop28de-iklim-degisikligiyle-mucadelede-ticaretin-rolu-tartisilacak/ 15 https://commission.europa.eu/strategy-and-policy/priorities-2019-2024/european-green-deal_en 16 https://www.isoyesilblog.com/avrupa-komisyonu-avrupa-parlamentosu-ve-ab-konseyi-arasinda-surdurulebilir-urunler-icin-anlasma-saglandi/ 17 https://www.isoyesilblog.com/avrupa-surdurulebilirlik-raporlama-standartlari-belirlendi/ 18 https://www.isoyesilblog.com/ab-sirketlere-cevre-ve-insan-haklari-konularinda-yeni-yukumlulukler-getiriyor/ 19 https://www.isoyesilblog.com/ifrs-surdurulebilirlik-aciklama-standartlari-yayimlandi/ GRI 2-22, GRI 3-3 ABOUT THE ISTANBUL CHAMBER OF INDUSTRY 2023 DEVELOPMENTS SUSTAINABILITY IN THE ISTANBUL CHAMBER OF INDUSTRY 32This affects the importance of companies understanding their impact on nature along their supply chains, and the risks and opportunities related to nature. Accordingly, nature-related disclosures will be one of the main agendas of reporting processes in the near future. As an important indicator of this, in January 2024 at the World Economic forum, The Taskforce on Nature-related Financial Disclosures (TNFD) announced that 320 organizations from more than 46 countries have committed to start making nature-related disclosures based on the TNFD recommendations published in September 2023 20 . All these developments regarding reporting are critical in terms of preventing green laundering, and the process of compliance with the regulations will be an important follow-up issue for investors in the coming period. DEVELOPMENTS IN TÜRKIYE 2023 unfortunately started with an unprecedented natural disaster for Türkiye. On February 6, very strong earthquakes in the Pazarcık and Elbistan districts of Kahramanmaraş caused massive destruction in eleven provinces, affecting a vast geography of about 14 million people. Every region, province and town in Türkiye rushed to help in a spirit of mobilization. All institutions acted with great responsibility to heal the wounds and demonstrated an important example of solidarity. In the 12th Development Plan, where sustainable development is set as a priority goal, Türkiye aims to make progress in areas such as energy efficiency, renewable energy, circular economy and green financing. “Green and Digital Transformation” is among the priority structural reform areas of the Medium Term Program (OVP) for the 2024-2026 period. After Türkiye became a party to the Paris Agreement in 2021, setting a net zero emission target for 2053 stood out as important steps in the fight against climate change. The Climate Law, which is expected to be published in the coming period, is important in terms of creating a legal basis for Türkiye’s green transition-oriented efforts. In this context, the implementation of the National Emission Trading System, which is currently underway, will be an important tool in achieving emission reduction targets. In this context, the Green Industry Project, which stands out as one of the important steps Türkiye has taken to build a sustainable future, was realized with the support of the World Bank. The Project, carried out by the Ministry of Industry and Technology, the Scientific and Technological Research Council of Türkiye (TÜBİTAK) and KOSGEB, aims to increase the decarbonization efforts of industrial companies, improve their technical capacities and accelerate the green transition in industry. 21 In parallel with global developments in reporting, important steps have also been taken in Türkiye. The Turkish Sustainability Reporting Standards, which set out the principles to be followed in sustainability reporting, 22 were published by the Public Oversight, Accounting and Auditing Standards Authority (KGK) in early 2024. 20 https://tnfd.global/320-companies-and-financial-institutions-to-start-tnfd-nature-related-corporate-reporting/ 21 https://tgip.sanayi.gov.tr/ 22 https://www.kgk.gov.tr/surdurulebilirlik GRI 2-22, GRI 3-3 VALUES CREATED BY THE ISTANBUL CHAMBER OF INDUSTRY SUSTAINABILITY PERFORMANCE OF ISTANBUL CHAMBER OF INDUSTRY GRI CONTENT INDEX 33JANUARY 2023 The January Ordinary Assembly Meeting of the Istanbul Chamber of Industry was held with the participation of Alpaslan Çakar, Chairman of the Board of Directors of the Banks Association of Türkiye (TBB), with the main agenda item “Focusing on the Importance of Qualified, Sustainable, Accessible Financing for Value Added Manufacturing, Technology Intensive Industry and a Strong Economic Future”. FEBRUARY 2023 The February Assembly Meeting of the Istanbul Chamber of Industry was held with the main agenda of “Activities carried out by the ICI in order to heal the wounds of the earthquake disaster, the effects of the earthquake on our manufacturing life and industry”. The ICI launched the ICI Earthquake Coordination Center to organize and coordinate relief efforts and began preparations for the establishment of the “ICI Living City” to make a strong and lasting contribution to the return to normal life in the earthquake zone. As Türkiye’s largest and longest-established chamber of industry, the Istanbul Chamber of Industry has carried out many activities throughout 2023 to support the development of our country’s industry. Istanbul Chamber of Industry in 2023 ABOUT THE ISTANBUL CHAMBER OF INDUSTRY 2023 DEVELOPMENTS SUSTAINABILITY IN THE ISTANBUL CHAMBER OF INDUSTRY 34MARCH 2023 The management of the Istanbul Chamber of Industry held contacts in Brussels in order to develop cooperation and joint projects with stakeholder organizations in the European Union. APRIL 2023 After the April ordinary meeting of the Istanbul Chamber of Industry Assembly, which was held with the main agenda item “Industry in the 21st Century Green Economy and the Importance of ICI Green Transition Awards”, the ICI Green Transition Awards ceremony was held. MARCH 2023 The 2023 kick-off meeting of the ICI Sustainability Platform was hosted by Sultan Tepe, Member of the ICI Board of Directors and Chairperson of the Sustainability Platform, at Odakule. VALUES CREATED BY THE ISTANBUL CHAMBER OF INDUSTRY SUSTAINABILITY PERFORMANCE OF ISTANBUL CHAMBER OF INDUSTRY GRI CONTENT INDEX 35MAY 2023 The “Disaster Management Department” was launched in line with the need to be prepared for disasters, the need to create an effective combat strategy and the principle of “Disaster Resistant Industry”. MAY 2023 A workshop titled “ICI Determines its New Strategy and Priorities as the Manufacturing Life in a High Technology and Green Economy-Oriented World Undergoes a Radical Change” was hosted by Erdal Bahçıvan, Chairman of the Board of Directors of the ICI, and Ender Yılmaz, Chairman of the Assembly of the ICI, with the participation of members of the Board of Directors of the ICI, members of the Presidium of the Assembly of the ICI, and members of the Assembly of the ICI. JUNE 2023 In order to contribute to raising awareness on sustainability, “Climate Change and Sustainability Trainings” were organized with the contributions of ICI Sustainability Platform members in schools within the scope of ICI MEIP during Türkiye Environment Week, which also includes World Environment Day on June 5. ABOUT THE ISTANBUL CHAMBER OF INDUSTRY 2023 DEVELOPMENTS SUSTAINABILITY IN THE ISTANBUL CHAMBER OF INDUSTRY 36JUNE 2023 Istanbul Chamber of Industry’s Vocational Training and Cooperation Project-ICI MEIP was one of the four finalists in the “Best Partnership Project” category of the 2023 World Chambers Competition, organized within the scope of the 13th World Chambers Congress held in Geneva, where 111 chambers from 47 countries competed. AUGUST 2023 The August Ordinary Assembly Meeting of the Istanbul Chamber of Industry (ICI) Assembly was held with the participation of Prof. Dr. Ömer Bolat, Minister of Trade, with the main agenda of “Consultations for Restructuring the Economy and Evaluating the Problems and Solution Suggestions of our Industry/Export World in the Pre-OVP Process”. JULY 2023 Organized in cooperation with the Istanbul Chamber of Industry (ICI) and the Banks Association of Türkiye (TBB), the “Banking and Industry Workshop for Financing Sustainability” was held with the theme of sustainable finance, which plays a decisive role in the realization of sustainable development-oriented investments. VALUES CREATED BY THE ISTANBUL CHAMBER OF INDUSTRY SUSTAINABILITY PERFORMANCE OF ISTANBUL CHAMBER OF INDUSTRY GRI CONTENT INDEX 37Next >