Hungarian SMEs must become sustainable in a precarious situation
It is crucial for small and medium-sized enterprises (SMEs) to start preparing now to meet the requirements of the ESG Act (E, environmental, S, social, G, governance). The regulation not only brings new obligations, but also offers significant opportunities to increase sustainability and competitiveness. Erste will help its SME clients with an ESG index and advice so that they can more easily comply with legal requirements.
Waiting, stagnation, in a sense a decrease – the SME sector is looking for opportunities to survive and adapt this year, while constantly facing new challenges. The output of the industry and the construction industry is decreasing: partly due to the declining order stock in our traditional export markets, partly as a result of the decline in domestic housing investments, the lack of EU and state-funded projects and the general decrease in investments. The service sector is struggling with declining demand. In agriculture, after the drought, the aftereffects of the war years, the high prices of raw materials and the falling purchase prices worsen the profitability.
Although the companies currently have a sufficient amount of liquidity – mainly thanks to the subsidized loan schemes used earlier – this liquidity is slowly but surely dwindling in the uncertain economic environment. The development of interest rates, the current market situation and the available refinancing schemes can have a significant impact on how businesses can replace their expiring loans. It is a risk that some subsidized projects do not have a “continuation”, while the companies have incorporated them into their financing structure, pointed out Róbert Szerdahelyi, head of Erste’s SME business.
Related news
PwC: dramatic steps needed to meet climate targets
According to PwC’s recent Net Zero Economy Index report, the…
Read more >There is a little scepticism about corporate sustainability
According to the Capgemini Research Institute’s 2024 survey, consumer confidence…
Read more >Crisis resistance through AI and ESG
KPMG’s CEO Outlook 2024 survey reflects the views of more…
Read more >Related news
Hungarian companies are optimistic about climate change
According to EY’s international research, the majority of Hungarian companies…
Read more >REWE offers animal-free cheese in Germany
REWE is offering cheese lovers a new sustainable cheese alternative:…
Read more >AI handbook for the communications industry to be published
Domestic trade organisations, including MAKSZ, MMSZ and MLE have teamed…
Read more >