More than a thousand Hungarian companies will have to report on their sustainable operations to the EU

By: Trademagazin Date: 2023. 03. 22. 10:02

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Less than a third of companies listed on the stock exchange are considered sustainable based on the indicators of the EU’s green framework, draws attention to the EY study analyzing 11 member countries. The goal of the European Union is to become carbon neutral by 2050, therefore it would regulate the economic activities of more and more companies; however, companies have difficulty even interpreting the criteria. Back home, more than a thousand Hungarian-based organizations may be affected.

The European Union expects companies to take decisive steps in order to be able to meet the specified climate and energy goals. With the Taxonomy Regulation introduced in 2021, a common language was therefore created, which unifies in all member states what constitutes a sustainable economic activity and what does not. The task of the system is to objectively determine whether a company has a positive impact on the environment by examining sales revenue, operating costs (OPEX) and capital expenditures (CAPEX).

“From the taxonomic reports, both financial actors and the public can obtain comparable information about what EU companies are doing to protect the climate. The decree will gradually extend from large companies listed on the stock exchange to SMEs in the following years. As a result, the number of companies that will be required to report may rise to nearly 50,000 in the European Union. At home, the regulation may affect up to 1,300 companies based in Hungary”

– emphasized Ákos Lukács, head of EY’s area dealing with Climate Protection and Sustainability Services.