It has started in the right direction, and now fine-tuning can begin - Is it worthwhile to reopen the Hungarian ESG regulations?
Hungary was one of the first EU member states to develop its own sustainability framework, the ESG law, which aims to harmonize sustainability data and prepare SMEs for export market requirements. While the law’s objectives are sound, in practice, the system presents several contradictions, and we often encounter obstacles during implementation that hinder its success.
Hungary is among the few EU member states that did not wait for the Brussels guidelines to be finalized, but instead created its own national framework for sustainability compliance. Law LXXXVIII of 2023, known as the ESG Law, has clearly correct objectives, such as creating comparable sustainability data, establishing a professionally prepared advisory layer, and preparing SMEs for the data reporting requirements of export markets. As a consultant who regularly meets with Hungarian companies to discuss ESG compliance, I see that the system, while well-intentioned, often works against its own goals.
