Sustainability Performance Stagnates at Hungarian Firms

Domestic corporate sustainability continues to stagnate in the first half of 2025, according to the latest data from a representative survey of domestic companies with revenues exceeding HUF 300 million; K&H's sustainability index remains unchanged at 39 points, unable to break out of the narrow 38-40-point range for the fourth year in a row.

According to K&H's summary, the greatest progress has been made in the areas of attitude and strategy.

The attitude sub-index rose to 72 points, the highest value in the history of the index. The vast majority of company executives recognize the importance of sustainability considerations, with 97 percent believing that sustainable operations improve financial performance in the long term.

The strategy sub-index also broke a record, rising by 6 points to 40 points. Half of the companies already regularly address sustainability at the corporate level, and four-fifths are aware of the EU's carbon emission targets for 2050.

According to the survey data, companies with revenues of more than HUF 4 billion, which had previously been at the forefront of sustainability indicators, have significantly reduced their activities. The main index measured among them fell by 9 points and currently stands at 50 points. The decline is evident in all sub-indices.

Meanwhile, the index for smaller companies with revenues between HUF 300 million and HUF 1 billion shows a slow but steady increase. The attitude and strategy sub-indices for companies with revenues of less than HUF 1 billion both rose by 7 points, reaching their peak in the sustainability index measurement.

There has been a significant decline in social aspects, with the survey showing a particularly large decline in ethical business conduct, fair treatment, and the integration of work-life balance at the company level.

The measurement and auditing sub-index remains at 13 points, meaning that the majority of companies still do not measure, audit, or plan to measure their carbon emissions.