Unlock the power of ESG to transform your business and build a more sustainable future.

Today, as climate disasters, political conflicts and social inequalities increasingly disrupt the world, rapid progress on ESG is key to achieving a more sustainable future.

Shareholders are increasingly taking environmental, social and governance (ESG) considerations into account in their decisions.

Consumers also choose brands based on their ethical behaviour and climate change performance.

Investors prefer companies with robust ESG frameworks.  

Governments around the world are also increasingly introducing regulations to require organisations to integrate sustainability considerations into their business and risk management processes, to increase transparency in areas such as environmental impact, carbon emissions and even equal pay, in order to maintain long-term relevance and competitiveness. 

In Hungary, in addition to the already mandatory sustainability disclosure rules across the European Union, there are a number of operational requirements for both the real economy and the financial sector to help long-term sustainability goals take shape. The ESG Act requires the incorporation of sustainability considerations into risk management, supplier due diligence, social responsibility strategies and ESG reporting. For the financial sector, the Green Recommendation of the Hungarian National Bank expects green factors to be included in strategy development, risk management and other measures for green banking and insurance product development.

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A snapshot of the top 6 ESG regulations impacting EU-based companies

Document
01

EU Taxonomy

02

European Union Corporate Sustainability Reporting Directive (CSRD)

03

Sustainable Finance Disclosure Regulation (SFDR)

04

Corporate Sustainability Due Diligence Directive (CSDDD)

05

Carbon Border Adjustment Mechanism (CBAM)

06

Regulation on Deforestation-free products (EUDR)

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