Global warming and environmental problems have become one of the most important items on the agenda in Turkey as in the whole world. In this context, the concept of sustainability is gaining more and more importance at both individual and corporate level. In this process, green taxonomy has emerged as a classification system that encourages sustainable investments by evaluating the environmental impacts of economic activities.

Green taxonomy has led to significant changes in financial reporting. Companies are now required to report not only their financial performance but also their environmental impact. Thanks to new metrics such as green asset ratio, investors can better evaluate the environmental performance of companies and direct them towards sustainable investments.

This study analyses the effects of green taxonomy on financial reporting. It focuses on issues such as what the green taxonomy is, why it is important, the innovations it brings to financial reporting and future expectations. In addition, the applications in Turkey and the potential of the green taxonomy to accelerate the transformation in the financial sector are evaluated.