EY: The ESG knowledge of Hungarian companies is limited

By: Trademagazin Date: 2024. 09. 03. 11:49

A significant number of domestic companies are not aware of the environmental, social and corporate governance (ESG) aspects they must comply with. The biggest challenge for them is navigating between legislation and the lack of resources, according to EY’s international research involving a total of 5,464 stakeholders in 53 countries, including Hungary.

Almost half of the Hungarian respondents (51%) have not even heard of ESG-related legislation or are unaware of its effects on the operation of their company, which is worse than the average results in Eastern Europe (40%) and globally (35%). According to their own admission, only every third of the Hungarians included in the research has some insight into the topic. Compared to this, two-thirds of the respondents believe that their organization complies with the regulations regarding sustainability guidelines.

“Based on the results, many domestic companies still do not see what legal obligations they face in the field of sustainable operations. However, the enforcement of these aspects is increasingly essential for companies, as it is of particular importance in gaining investor trust. Compliance may also require comprehensive knowledge of the regulatory framework and the development of new internal processes, which can be greatly helped by experienced external ESG experts.”

– emphasized Ákos Lukács, partner of EY’s Climate Change and Sustainability Services business unit.