A significant proportion of Hungarian companies are not aware of the environmental, social and governance (ESG) aspects they need to comply with, the biggest challenge for them is navigating the legislation and the lack of resources, according to an international survey published by Ernst&Young (EY).
EY examined the conditions of ethical operation in 2024 by interviewing a total of 5,464 employees and board members in 53 countries worldwide, including Hungary.
The survey revealed that 51% of Hungarian respondents have not even heard of ESG-related legislation or do not know its impact on their company's operations, which is worse than the Eastern European average of 40% and the global average of 35%.
The publication quoted Ákos Lukács, partner in EY's Climate Change and Sustainability Services business, as saying that the results show that many Hungarian companies still do not understand the legal obligations they face in terms of sustainable operations, which are essential for companies to enforce and are also important for gaining investor confidence.
According to Ákos Lukács, the study also highlights the fact that domestic companies have not yet decided who is responsible for ESG compliance within their organization, although it is worth noting that the ESG law will oblige a number of companies to report their 2024 results as early as 2025.
Careful planning and development of sustainability reporting processes and high-quality reporting based on credible data will reduce the risk of fines and contribute to a company's reputation, thereby strengthening the trust of employees, regulators, customers and investors, EY said in a statement.


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