Energy investment in Türkiye is entering a more disclosure-driven phase. For years, investors assessed energy projects mainly through permits, tariffs, grid connection, projected generation, offtake structures, and financing terms. Those factors still matter, but they no longer tell the whole investment story.
The International Sustainability Standards Board (ISSB) is now consulting on proposed amendments to three SASB Standards, including the Electric Utilities & Power Generators standard. The proposals are part of the ISSB’s broader work to improve industry-specific sustainability disclosures and align SASB materials with IFRS S1 and IFRS S2. For the energy sector, the practical message is clear: investors are asking for more decision-useful information about long-term climate risk, nature-related impacts, human capital, community relations, and supply chain resilience.
For foreign investors considering Türkiye’s energy market, this is not just a reporting technicality. It affects how projects are screened, how lenders assess risk, how partners negotiate warranties, and how buyers value assets at exit.
Why ISSB’s Energy Disclosure Work Matters
The ISSB’s proposed amendments focus on making SASB Standards more internationally applicable, more useful for investors, and more interoperable with other sustainability frameworks. The Electric Utilities & Power Generators standard is especially relevant because power generation assets are capital intensive, long lived, highly regulated, and exposed to changing climate, technology, and market conditions.
In practical terms, investors want to understand whether an energy business can remain resilient over the next decade. Historical revenue and generation data are no longer enough. A buyer or lender will increasingly ask:
- How exposed is the asset to climate transition risk?
- What is the company’s decarbonization plan?
- Are nature and biodiversity impacts understood and managed?
- Does the project have stable community relations?
- Can the operator secure skilled labor and critical equipment?
- How vulnerable is the supply chain to currency, logistics, or geopolitical disruption?
- Is sustainability information reliable enough for investor reporting?
This turns sustainability disclosure into a due diligence tool. It helps investors compare projects that may look similar financially but carry very different execution and reputational risks.
Türkiye’s Energy Market Is Strategically Attractive
Türkiye remains one of the most important energy markets between Europe, the Middle East, Central Asia, and North Africa. Its location, industrial base, growing electricity demand, and renewable energy potential continue to attract international attention.
The country offers opportunities across several areas:
- Solar and wind generation
- Grid modernization and transmission infrastructure
- Battery storage and flexibility solutions
- Geothermal and hydro assets
- Industrial decarbonization
- Energy efficiency services
- Data center and clean power procurement
- Manufacturing linked to renewable equipment and components
Türkiye’s energy transition is also connected to broader economic strategy. Renewable energy investment can reduce import dependence, support industrial competitiveness, and improve alignment with European supply chains. For foreign investors, this creates a strong commercial rationale. However, the same strategic importance also increases scrutiny.
As the market matures, the most competitive projects will be those that combine strong financial fundamentals with transparent sustainability data and credible long-term operating plans.
The Shift From Emissions Data to Forward-Looking Resilience
Many companies still treat ESG reporting as a backward-looking exercise: collect emissions data, publish a report, and move on. The direction of ISSB and SASB reporting is different. The goal is to help investors assess risks and opportunities that could affect enterprise value.
For energy companies, this means reporting should explain not only what emissions were produced, but how the company plans to manage the transition ahead. A credible disclosure package may need to cover:
| Investor Question | Why It Matters |
|---|---|
| What is the company’s transition plan? | Shows whether capex and strategy are aligned with market direction |
| What climate risks affect the asset? | Supports valuation, insurance, and financing analysis |
| Are local environmental impacts managed? | Reduces permitting, litigation, and community delay risk |
| Is skilled labor available? | Affects construction, operations, and maintenance continuity |
| Are key components secure? | Impacts delivery timelines and project economics |
| Is governance clear? | Shows whether sustainability risks are owned at senior level |
This is especially important in Türkiye because energy projects often involve multiple stakeholders: regulators, municipalities, grid operators, landowners, lenders, EPC contractors, equipment suppliers, and local communities. A weak disclosure process can hide operational risks until late in the investment process.
Community Relations Are Now a Financial Issue
Community relations are sometimes treated as a soft topic. In energy investment, they are not. Poor stakeholder management can delay land access, disrupt permitting, create litigation risk, and weaken political support for a project.
Renewable energy projects, grid infrastructure, hydro assets, geothermal operations, and mining-linked supply chains can all raise local concerns. These may involve land use, visual impact, water resources, biodiversity, traffic, construction disturbance, or benefit sharing.
Foreign investors should therefore ask early:
- Has the project mapped affected communities and stakeholders?
- Are consultation records complete and credible?
- Were land rights and easements obtained properly?
- Are grievance mechanisms documented?
- Does the operator track complaints and resolution times?
- Are local employment and procurement commitments realistic?
A project with clear community engagement practices will often be easier to finance, operate, and sell. A project with unresolved local issues may face delays even if its technical design and tariff assumptions look attractive.
Human Capital and Technical Capacity Need Attention
The energy transition is talent intensive. Solar, wind, storage, grid automation, geothermal, and industrial efficiency projects require specialized skills. Developers need engineers, project managers, environmental experts, O&M teams, grid specialists, finance professionals, and compliance staff.
ISSB’s focus on human capital is relevant because labor capability can directly affect project execution. For investors in Türkiye, workforce due diligence should include more than headcount. It should assess whether the operator has the technical depth to deliver and maintain the asset over time.
Key questions include:
- Does the operator have experienced technical leadership?
- Are O&M responsibilities internal or outsourced?
- Is there a training plan for new technologies?
- Are health and safety systems appropriate for construction and operations?
- Can the company retain critical staff?
- Are contractors subject to performance and safety standards?
This is particularly important for foreign investors entering through joint ventures or acquisitions. The asset may be attractive, but the operator’s execution capacity can determine whether expected returns are actually achieved.
Supply Chain Risk Is Part of Energy Due Diligence
Energy projects depend on complex supply chains. Turbines, panels, inverters, transformers, batteries, cables, monitoring systems, spare parts, and specialist services can all affect timing and cost.
Türkiye has advantages as a manufacturing and logistics hub, but foreign investors still need to assess exposure to:
- Imported equipment and currency volatility
- Long lead-time grid components
- Technology supplier concentration
- Warranty and maintenance availability
- Customs and logistics bottlenecks
- Critical mineral and battery supply risk
- Local content or incentive requirements
Supply chain disclosure helps investors understand whether a project is genuinely executable within the proposed budget and timeline. It is also increasingly relevant for companies that need to report to global investors, lenders, or parent companies under IFRS S1, IFRS S2, EU-linked sustainability expectations, or internal ESG frameworks.
What Foreign Investors Should Add to Their Checklist
The ISSB proposals do not mean every investor must redesign its entire due diligence process immediately. They do mean that energy due diligence should become more structured and forward-looking.
Before investing in a Türkiye energy project, foreign investors should review:
- Sustainability reporting readiness
- Alignment with IFRS S1, IFRS S2, and SASB sector guidance
- Climate transition strategy and capex plan
- Environmental permits and EIA documentation
- Nature and biodiversity impact controls
- Community engagement and grievance records
- Workforce, O&M, and contractor capacity
- Health and safety systems
- Supply chain resilience and equipment sourcing
- Governance ownership of sustainability risks
- Data quality for emissions and operational metrics
- Compatibility with lender and investor reporting requirements
This checklist should be used before signing term sheets, not only before closing. Early identification of disclosure gaps gives investors time to price risk, negotiate protections, or require remediation.
The Opportunity for Better-Prepared Investors
For foreign investors, stronger disclosure expectations should not be seen only as a compliance burden. They can also create an advantage.
Investors that understand sustainability reporting can identify higher-quality assets, negotiate more effectively, and reduce surprises after acquisition. Developers that prepare investor-grade data can access capital more easily and differentiate themselves in a competitive market. Companies that align early with international disclosure expectations may also be better positioned for partnerships with global utilities, infrastructure funds, development finance institutions, and strategic buyers.
In Türkiye, this matters because the energy market is still expanding. The combination of renewable potential, industrial demand, regional connectivity, and policy momentum creates real opportunity. But the strongest projects will be those that can demonstrate not only technical feasibility and financial return, but also transparent governance and long-term resilience.
How FDI Consultancy Can Help
FDI Consultancy supports international investors evaluating, entering, and expanding in Türkiye. For energy and infrastructure investors, this includes market entry planning, company setup, regulatory coordination, partner screening, due diligence support, compliance mapping, and investment structuring.
If you are assessing an energy project in Türkiye, sustainability disclosure should be part of the investment conversation from day one. A clear ESG and reporting review can help you understand the real risk profile of the asset and build a stronger case for financing, partnership, or acquisition.
Sources
This article is based on the ISSB’s 2026 Exposure Draft on proposed amendments to SASB Standards and IFRS S2 industry-based guidance, including Electric Utilities & Power Generators, and market reporting on the implications for energy investors. See the IFRS Foundation’s announcement here: https://www.ifrs.org/news-and-events/news/2026/03/issb-seeks-feedback-proposed-amends-sasb-standards/ and the Enerji Günlüğü article here: https://www.enerjigunlugu.net/service/amp/yatirimcilar-enerjide-gelecegin-stratejisine-odaklaniyor-68758h.htm