New ESG detail rules published

By: Trademagazin editor Date: 2024. 10. 30. 10:28

On 15 August implementing regulations were published that provide precise guidance for Hungarian companies on the preparation and publication of ESG reports.

This article is available for reading in Trade magazin 2024/10

An important element of the regulations is the obligation for companies to carry out due diligence for sustainability purposes. This system looks not only at own business activities but also supply chains. Under the new rules, companies must identify risks to sustainability and take appropriate measures to minimise them.

Questionnaire and software for supplier due diligence

Supply chain due diligence is a particularly complex task. In order to make this easier, the legislator has introduced two important tools: the “maximum ESG due diligence questionnaire”, a standardised set of questionnaires, and the possibility to use software support to simplify the due diligence process and increase efficiency.

Develop your own methodology

The new regulation also specifies the minimum requirements, content and format for ESG Statements in detail. In addition to an analysis of their own sustainability risk management system, companies will have to include a mandatory annex with a central questionnaire to be completed by their suppliers. For assessing the risks, the company must develop its own methodology or update its existing risk management system. Every year companies are required to prepare and publish ESG reports by 30 June. //