The competitiveness of Hungarian enterprises may depend on ESG compliance

By: Trademagazin Date: 2023. 12. 21. 11:56

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Today, sustainability is not only a fashionable topic, but also a decisive issue for the future of business organizations in the 21st century. The worsening global climate reports already affect all economic actors, and thus the sustainability turn has become inevitable. In the corporate environment, ESG (Environmental, Social, Governance) aspects determine sustainable operation, and compliance with them will not only be an obligation in the future, but a fundamental element of competitiveness.

European Union regulations define the framework of sustainability, and Hungary is one of the first countries to answer the questions of sustainable financing and uniform corporate social responsibility. On December 12, 2023, Parliament adopted the bill regulating ESG compliance. According to this, large companies and companies listed on the stock exchange must reevaluate their activities based on ESG aspects and prepare an annual report, which can be read at vg.hu.

SMEs will still be exempt from the obligations until 2026, but those involved in supply chains are already faced with the obligation to provide data. Large companies must prepare a development strategy, taking into account their suppliers and the entire life cycle of their products.