A new law can help domestic companies operate more sustainably

By: Trademagazin Date: 2023. 11. 27. 12:05

The government has submitted to the Parliament a proposal to amend the law encouraging sustainable corporate operations, EY points out. The affected domestic companies must also clarify their operations from an environmental, social and corporate governance (ESG) point of view, and they can also expect penalties if they do not fulfill the data provision obligations.

The purpose of the bill is to make the activities of the companies subject to it more transparent and therefore objectively scrutinized based on sustainable financing and ESG aspects, thereby supporting the implementation of European climate protection efforts.

The law, which is expected to enter into force on January 1, 2024, applies to large companies where, in the previous business year, any two of the three specified indicators exceeded the specified limit, i.e. the balance sheet total of HUF 10 billion, the annual net sales revenue of HUF 20 billion, the and the average number of employees is 500. In addition, the proposal separately applies the conditions to large, small and medium-sized enterprises that are considered to be in the public interest and are deemed to be farmers, as well as to other large enterprises.