The introduction of ESG (Environmental, Social, Governance) reporting obligations has brought about significant changes in the Hungarian corporate sector. According to the joint event of EY and the Hungarian Regulatory Authority (SZTFH), compiling ESG reports requires significant resources for companies.

The biggest challenge currently for Hungarian companies is interpreting the changes in legislation and mapping supplier risks. According to the results of the ESG rapid assessment, the majority of companies are still at the beginning of the journey and need significant support to establish appropriate systems.

It is a positive development that on June 17, 2025, the Parliament adopted an amendment to the ESG Act, which eases the due diligence and reporting obligations for sustainability purposes. The amendment aims to provide domestic companies with a more proportionate and predictable compliance environment to meet sustainability expectations.

The amendment to the law not only serves to reduce the burden of legal compliance, but also to encourage companies to turn to environmental, social and corporate governance (ESG) principles with a strategic approach. This can provide a competitive advantage in the long term for those companies that prepare for ESG requirements early.

It is important to emphasize that ESG is not only a compliance obligation for companies, but also an opportunity to view the sustainability aspects of their operations in a structured way and improve their business performance.