NGM: ESG approach is increasingly dominant among investors

By: Trademagazin Date: 2025. 11. 20. 11:38

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Competitiveness and sustainability are no longer two separate paths, but parts of the same modern economic policy logic that determine the future of Hungary; The ESG (environmental, social and governance) approach, which measures the sustainability of companies, is becoming increasingly important among investors, said the Deputy State Secretary for SME Development at the Ministry of National Economy (NGM) at a conference in Budapest on Thursday.

László Hunyadi, in his presentation at the Green Finance Conference of the Hungarian National Bank (MNB), said that the global market for ESG investments doubled between 2018 and 2024, and is estimated to reach $80 billion by 2030, with the strongest demand for such investments coming from the Asian region. The development of the domestic framework began in 2023 and entered into force at the beginning of 2024, and detailed guidelines have been prepared for companies, he explained.

He mentioned that ESG is gradually becoming unavoidable in business. In the past year, the EU’s legislative wave has produced more than 70 legislative proposals and more than 200 regulatory elements within the framework of the European Green Deal. According to the estimates of the Supervisory Authority for Regulated Activities (SZTFH), the EU’s sustainability rules today consist of more than 50 directives and regulations, and according to EU research, these impose an administrative burden of 2.3 billion euros on the companies concerned every year.

Acknowledged:

Among the actors in the Hungarian ESG ecosystem, the NGM and the SZTFH are involved in legislation, and the Hungarian Economic Development Agency (MGÜ) is involved in corporate support. According to research, the vast majority of companies already feel that ESG is an opportunity that should be seized. He indicated that preparations are currently underway to create a state ESG rating system, and that the MGÜ could be a useful partner for companies in their ESG-related tasks.

Zsófia Koncz, State Secretary for Families at the Ministry of Culture and Innovation (KIM), emphasized that since 2010, the government has been examining all its decisions from the perspective of families and has approached all areas – including sustainability – with a family-friendly focus. Hungary is also unique in that it places families at the center of its ESG efforts.

He said that the three pillars of family policy are improving the financial situation of families, supporting home creation, and helping to create a balance between family and work.