ESG Act: Sustainability risk management by publishing the ESG report of large companies

By: Trademagazin Date: 2024. 01. 29. 12:17

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A new reporting obligation awaits domestic enterprises under the so-called According to the ESG law. In the ESG report, which also supports a favorable credit rating, the companies concerned must declare annually on the screening of environmental and social impacts for sustainability purposes, including their own operations and the activities of the supply chain.

An intensive period follows, as many new tasks await the organizations and their business processes: selection of dedicated people, setting up new work processes, introduction of risk management and complaint management systems, uploading data to the ESG management platform. This can be a strong incentive for economic operators to stay competitive. Not only do companies that comply with the obligations expect a positive reputation and good credit structures, but from 2026, those who do not comply can also expect serious fines.

On January 1, the so-called CVIII of 2023 on the ESG Act, i.e. on the amendment of the rules of corporate social responsibility and other related laws, which take into account environmentally conscious, social and social aspects that serve to encourage sustainable financing and uniform corporate responsibility. law.

In addition to the number of employees and economic indicators defined in the regulations, some large companies are required to review their operations from a sustainability point of view, and the result of this is called to publish an ESG report.

The law lays down that the companies concerned must examine and manage environmental and social impacts during their business activities, and they must also incorporate them into their business decisions and strategies. Below, we have summarized what steps the relevant large companies must implement and comply with under the law.