Hungary is at the forefront of ESG regulation: a new era in corporate responsibility

Hungary is at the forefront of introducing ESG regulation in Europe. As a result of the ESG law adopted in 2023, sustainability reporting is no longer just a voluntary commitment for responsibly thinking companies, but a legal obligation.

The Hungarian ESG law is a forward-looking regulation that makes sustainability reporting mandatory for larger companies. A simplified reporting standard (VSME) is proposed for SMEs, which is not an end in itself, but creates real value in the operations of companies.

The regulation has increased the commitment of company leaders to sustainability. Based on data from the first half of 2025, awareness of sustainability goals has increased markedly. EU carbon emission reduction targets and domestic ESG obligations together encourage Hungarian companies to make a green transition.