Sustainability Perspective In Marina Business

C
CBC Law Firm

Contributor

CBC Law (Formerly Cetinkaya) is a full-service law firm based in Istanbul servicing local and international clients. Our lawyers have extensive expertise in advising on dispute resolution, business crime, technology, data protection and intellectual property. CBC Law prides itself on helping clients navigate their way through a constantly changing and challenging legal landscape. With a seamless multidisciplinary approach positioned at the intersection of industry knowledge and legal expertise, we provide our clients with legal solutions that are tailored to their needs in Turkey.
In this article, we examine the significance of ESG principles for marina businesses in Türkiye, emphasizing their role in sustainability, financial performance, and competitive advantage...
Turkey Environment

In this article, we examine the significance of ESG principles for marina businesses in Türkiye, emphasizing their role in sustainability, financial performance, and competitive advantage, as well as the importance of environmental responsibilities and their impact on global sustainability trends.

Introduction

Nowadays, marinas serve as vibrant living spaces that both enhance the architectural aesthetics and provide economic development to the regions where they are located. When managed properly and located appropriately, marinas are businesses that support biodiversity and revitalize coastlines. The diversity and richness of Türkiye's peninsular coastline stands out as an advantage across Europe. To fully utilize this advantage, marina operators should prioritize sustainable and viable coastal management policies. The adoption of ESG principles in marina management, embracing a sense of responsibility that beyond economic gains and includes environmental and social impacts, will ensure the future success and sustainability of the business through a holistic management approach.

Key Principles for Corporate Sustainability

Today, focusing solely on financial performance is not sufficient for businesses to achieve long-term success and sustainability. ESG criteria are especially crucial for the sustainability of marina businesses, since their operations are directly tied to the quality of the marine environments. These criteria enhance a business's long-term value creation by considering its environmental impact, social responsibility, and ethical governance approach, thereby influencing the preferences of both investors and customers.

1. Environmental Factors and Practices

The environmental dimension of ESG involves a business's impact on natural resource utilization, energy efficiency, waste management, and carbon footprint. Marina businesses can optimize their environmental impact by implementing strategies such as adopting wind and solar energy, utilizing eco-friendly maintenance and construction materials, promoting water conservation practices, and improving waste prevention efforts. These strategies contribute to both the environment and long-term financial performance.

By controlling biological and chemical wastes in the marine ecosystem through environmental management practices, marinas reduce operational costs and gain a competitive advantage in marketing. Marinas in Türkiye prioritize international certifications such as the Blue Flag, Golden Anchor, and Blue Star, as well as certification processes like ISO 14001 Environmental Management System and the ICOMIA Clean Marina Program, to improve their environmental performance. These certifications and documents support marinas' efforts to minimize their environmental impact and establish quality standards.

At the same time, marina businesses may increase their reputation with the Green Port Certificate they will receive from the Ministry of Transport and Infrastructure by applying in accordance with the criteria determined within the scope of the relevant regulation1 Such processes allow marina business owners to transparently present their quality standards to stakeholders by complying with the criteria specified in the legislation.

In addition, controlling pollution at its source and implementing preventive measures provide an effective and cost-efficient solution. In this context state authorities must strengthen regulatory measures in line with environmental and social sustainability principles concerning the designation of new marina locations and the operations of existing ports. Such an actions are critical, as the foundation of yacht tourism relies on maintaining the quality of the marine environment where these activities occur. Therefore, it is essential to determine the number and capacity of marinas in a manner that preserves the environmental values of the geographical regions in which they will be situated.

2. Social Responsibility and Community Contribution

The social dimension of ESG in marina management encompasses how businesses interact with local and regional communities as well as communicate with all stakeholders. To improve employee well-being, contribute to their communities, and provide a fair working environment, businesses can develop a variety of social responsibility programs. Common practices include organizing coastal clean-up events with local communities or collaborating with non-profit organizations. Such initiatives not only enhance employee engagement and improve the quality standards of business activities, but also strengthen the reputation of marina businesses.

3. Governance Principles and Transparency

In the governance aspect of ESG impacts within marina businesses, it is essential to address issues such as employee rights, occupational health and safety, management structure, corporate ethics, accountability, and shareholder/stakeholder relations. Good governance ensures that management conducts decision-making processes in a transparently and fairly. The adoption of appropriate policies and procedures within the marina and other areas secures an effective and sustainable corporate structure. Additionally, periodically preparing sustainability reports enables marina businesses to effectively manage their environmental performance and maintain transparent communication with their stakeholders. Similar to social factors, these practices enhance reputation and positively influence stakeholder interest.

Marina businesses should adopt a management structure aligned with ethical values and implement a transparent communication policy. Establishing qualified personnel and efficient organizational structures is essential. To achieve this, providing sector-specific training to employees and developing detailed policies and procedures will be beneficial. Business founders should foster a cohesive corporate culture that promotes long-term sustainability. This approach enables businesses to build trustworthy relationships with their stakeholders and achieve their long-term sustainability goals.

Global Legal Compliance Dynamics and Trends in ESG

According to a report published by Morgan Stanley Capital International, the key ESG issues businesses should focus on in 2024 include; compliance with the impacts of international regulations, due diligence obligations within supply chains and organizational structures, investments aimed at protecting nature and preventing the climate crisis, and the integration of artificial intelligence in managing sustainability obligations.2

Marina businesses, obligated to operate in accordance with international standards, must consider the legal framework and environmental impacts they face, highlighting the importance of the United Nations Sustainable Development Goals.3 In this context, the practices and contributions of marina operators toward Goal 7 — ensuring access to affordable, reliable, sustainable, and modern energy for all — are essential. Activities aimed at combating climate change, protecting oceans, seas, and water resources, preserving terrestrial ecosystems and supporting sustainable ecosystems will enhance the value of marina businesses in the eyes of customers, investors, and stakeholders. Adopting these goals not only fulfils environmental responsibilities but also contributes to establishing a sustainable and long-term value-driven business model for marinas.

In terms of international directives and standards, the Paris Climate Agreement is particularly significant. This legally binding international agreement aims to combat climate change and reduce greenhouse gas emissions. Although marina businesses may face short-term cost challenges when structuring their organizations to address these issues, adopting a sensitive approach to greenhouse gas reduction and climate change will ultimately lead to the most effective strategy for long-term business sustainability and environmental compliance.

Additionally, the Corporate Sustainability Reporting Directive ("CSRD"), which came into effect in 2024, must also be considered.4 Companies based outside the European Union ("EU"), including those from Türkiye, are required to comply with this directive if they have a subsidiary or branch within the EU and conduct significant business activity annually. To summarize the criteria, a non-EU company must comply with the CSRD if it generates over 150 million euros in revenue within the EU for two consecutive years and has a subsidiary or branch in the EU that generates more than 40 million euros in revenue.5 In such cases, the subsidiary or branch must perform sustainability reporting for the entire parent company group in accordance with CSRD guidelines. Furthermore, the European Sustainability Reporting Standards6 should be assessed alongside the CSRD, as they provide guidance on what companies should report regarding environmental, social, and governance issues, and are essential for effective sustainability reporting.

Another crucial aspect to consider regarding compliance dynamics is the conditions and obligations established in national legislation. For instance, compliance with the obligations specified in Article 23 of the Ports Regulation, titled "Rules for Environmental Protection and Prevention of Environmental Pollution" must be ensured within this framework.

Conclusion

Marina businesses in Türkiye are increasingly adopting ESG principles by to enhance their sustainability in environmental, social, and governance areas. These steps are vital not only for improving financial performance but also for ensuring the long-term sustainability of marine tourism. By implementing a sustainability-focused management approach, businesses fulfil their environmental and social responsibilities while contributing to the protection of the marine ecosystem. Furthermore, this comprehensive strategy adds value to both society and investors, providing a competitive advantage in the long run. In this context, sustainability practices are expected to have a broader impact on marina management and emerge as a key differentiator in the business landscape.

With thanks to Can Ergül for his contribution

References

Calado, H., Vergílio, M., Moniz, F., Grimmel, H., Monwar , M., & Papaioannou , E. (2023, March 2). The Diverse Legal and Regulatory Framework for Marine Sustainability Policy in the North Atlantic – Horrendograms as Tools to Assist Circumnavigating Through a Sea of Different Maritime Policies. Retrieved from Springer Link: https://link.springer.com/chapter/10.1007/978-3-031-20740-2_7

Commission Delegated Regulation (EU) 2023/2772 of 31 July 2023 supplementing Directive 2013/34/EU of the European Parliament and of the Council as regards sustainability reporting standards. (2023, July 31). Retrieved from EUR-Lex: https://eur-lex.europa.eu/legal-content/en/TXT/?uri=CELEX:32023R2772

Department for Environment, Food and Rural Affairs - Draft statutory guidance to the Marine Management Organisation on its contribution to the achievement of sustainable development. (2010, March). Retrieved from assets.publishing.service.gov.uk: https://assets.publishing.service.gov.uk/media/5a74b96440f0b619c8659e98/9780108509032.pdf

Frequently Asked Questions on the Implementation of the EU Corporate Sustainability Reporting Rules. (2024, August 7). Retrieved from European Commission: https://finance.ec.europa.eu/document/download/c4e40e92-8633-4bda-97cf-0af13e70bc3f_en?filename=240807-faqs-corporate-sustainability-reporting_en.pdf

Güneyli, Y. (2020, December 5). Kıyı Tesislerinin Faaliyetlerinden Kaynaklı Kirlenmeden Doğan Zararların ve Hukuki Sorumluluğun 5312 Sayılı Kanun Çerçevesinde İncelenmesi (Only in Turkish). Retrieved from Dergipark: https://dergipark.org.tr/tr/download/article-file/1534499

Regulation on Issuance of Green Port Certificate to Coastal Facilities (Only in Turkish). (2023, November 18). Retrieved from Official Gazette: https://www.resmigazete.gov.tr/eskiler/2023/11/20231118-25.htm

Monaco Smart & Sustainable Marina Rendezvous Highlights Cutting-Edge Innovations in Sustainability. (2023, October 2). Retrieved from Marine Project: https://marine-project.com/monaco-smart-sustainable-marina-rendezvous-highlights-cutting-edge-innovations-in-sustainability/

Muslu, A. (2017). Yaşanabilir Kıyı Kentleri için Marinaların Yönetim ve Organizasyonunun Önemi (Only in Turkish). Retrieved from Dergipark: https://dergipark.org.tr/tr/download/article-file/409090

New approaches to marine management. (2021). Retrieved from World Ocean Review: https://worldoceanreview.com/en/wor-7/marine-management-aspiration-and-reality/new-approaches-to-marine-management/

Sustainability and Climate Trends to Watch for 2024. (2023). Retrieved from MSCI: https://www.msci.com/research-and-insights/2024-sustainability-climate-trends-to-watch?2

Sustainable Development. (nd). Retrieved from Monaco Marina Management: https://monacomarinamanagement.org/sustainable-development/

Taschner, M. (2023, October 31). New CSRD Sustainability Reporting Covering More Companies and More Disclosures. Retrieved from S&P Global: https://www.spglobal.com/marketintelligence/en/news-insights/blog/new-csrd-sustainability-reporting-covering-more-companies-and-more-disclosures?cq_cmp=20792652479&cq_plac=&cq_net=g&cq_pos=&cq_plt=gp&utm_source=google&utm_medium=cpc&utm_campaign=Sustainab

THE 17 GOALS - Sustainable Development. (nd). Retrieved from United Nations: https://sdgs.un.org/goals

The Commission adopts the European Sustainability Reporting Standards. (2023, July 31). Retrieved from European Commission: https://finance.ec.europa.eu/news/commission-adopts-european-sustainability-reporting-standards-2023-07-31_en

Footnotes

1. (Regulation on Issuance of Green Port Certificate to Coastal Facilities, 2023)

2. (Sustainability and Climate Trends to Watch for 2024, 2023)

3. (THE 17 GOALS - Sustainable Development, nd).

4. (Taschner, 2023)

5. (Frequently Asked Questions on the Implementation of the EU Corporate Sustainability Reporting Rules, 2024)

6. (The Commission adopts the European Sustainability Reporting Standards, 2023)

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

Mondaq uses cookies on this website. By using our website you agree to our use of cookies as set out in our Privacy Policy.

Learn More