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Government official: ESG law to boost business competitiveness

Hungary's environmental, social and governance (ESG) law is aimed at strengthening the competitiveness of Hungarian businesses and promoting the establishment of the right business environment, a state secretary of the national economy ministry said on Thursday.

Expectations related to ESG obligations are becoming increasingly common in Hungary’s business sector, Aniko Turi told a conference, underlining the importance of clear regulations and in helping Hungarian companies prepare to meet ESG demands.

A large part of corporations’ environmental and social footprint is linked to their suppliers, Turi said. She noted that the government has adopted a strategy aimed at strengthening microbusinesses and SMEs until 2030 in which the goal of improving ESG consciousness is a priority measure.

Under the ESG law and related legislation, companies with total assets of over 10 billion forints (EUR 25.4m) and net sales revenue of over 20 billion forints employing more than 500 people will have to start including ESG reports in their annual reports from 2025, the state secretary said.

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