Tightening ESG regulation and practical challenges: where are we and where are we going?

The ESG legislation requires companies to undertake sustainability reporting and assessments, including risk management and the disclosure of environmental and social responsibilities. Companies face challenges in compliance, primarily due to the costs involved, but these are seen as investments that yield returns through higher rents and yields in the long run.

The Hungarian and regional investors are now focusing more on ESG criteria, especially in the real estate sector, considering factors like energy efficiency, natural lighting, and water supply. The conference highlighted that ongoing adjustments to the legal framework and corporate commitments are crucial for achieving sustainable development goals. The aim is also to position Budapest as a significant player in the international ESG landscape through upcoming conferences.