ESG Obligations In Hungary: Adapting To Broadening Regulatory Demands

In recent years, environmental, social and governance (ESG) considerations have become a core element of corporate strategy across the European Union (EU). Integrating ESG obligations is no longer simply a regulatory necessity for companies but also an opportunity for sustainable growth and innovation. Effective 1 January 2025, in addition to public-interest entities, large enterprises will also be required to conduct ESG reporting as they face a much more comprehensive set of requirements.

Large enterprises are defined as those whose financial indicators exceed any two of the following thresholds at the balance sheet date for the previous financial year: (i) a balance sheet total of HUF 10,000 million; (ii) an annual net turnover of HUF 20,000 million or (iii) an average of 250 employees.