" Sustainable Investments in Turkey" report published
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“ Sustainable Investments in Turkey, 2010” (Sustainable Investment in Turkey, 2010) (IFC, 2011) report that carries out the more nature of the report generally focused on the role of capital markets in sustainable investments and the effects of sustainability indices created by private exchanges and exchanges. In this context, Turkey was discussed as a case study. In the report, Turkey’s experience was analyzed to play a positive role in creating sustainable companies in which conditions of indices in developing markets.
[[T]]The results in the report consisting of the chapter:
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1. The pre-termining of sustainable investments is exchanges with the depth of trading shares of a large number of companies that will lead to sustainable companies without giving the advantages of diversification of investments.
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2. In an environment where global accepted general current scales are not in sustainability, such as rating companies, broker agencies play an important role in providing information on the sustainability performance of companies to investors. The demand for the absence of comparable scales negatively affects the demand and makes it a high cost job to measure sustainability performance.
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3. Corporate investors meet our main stakeholders to increase transparency in sustainability. Designed specifically for attracting sustainable investments in emerging markets, instruments should consider the demands of investors. Studies on sustainability of regulators and exchanges should be supported by other regulations to promote investments. The regulations made especially in pension funds can not only lead to sustainable companies by increasing marginal deposits.
4. Regulations for disclosure of information relating to sustainability and managing sustainability risks are increased. Access to information about sustainability and similar indexes in other developing economies make data more accessible in emerging markets in economic, social and administrative (ESG) issues. ESG data can be accessed in the developing markets, allowing them to develop sustainability indices. Companies in these indices are becoming more attractive in terms of sustainable investments. Global indexes play a more important role in local initiatives for small firms while covering the largest firms in emerging markets.
5. When creating a large part of local investments in the world, individuals with high income in Turkey stand away from capital markets. These potential investors can be encouraged to invest in the indices prepared based on the Sustainability Index that will be prepared recently. The size of the market in Turkey requires a common approach to product development and marketing. They can develop sustainable investment tools in collaboration with leading portfolio management companies. Due to the low demand for sustainable investment products, such a partnership can reduce product development costs.
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6. Differentiation of sustainable SMEs, supporting innovation and key importance for long-term finance access to these companies. For this, ESG criteria tailored to SMEs in Turkey can be developed. Criteria should also cover social effects by considering a large part of these companies in smaller cities. Simple scoring or reporting systems can help sustainable SMEs stand up and attract foreign investors. Tax exemption SMEs can be more attractive for corporate and individual local investors. It can help measures such as investment protection fund or insurance regulation.
