It can be difficult for companies to collect and analyze ESG data in light of the multitude of questionnaires to assess sustainability risks, investments, access to finance and supply chains. In practice, these questionnaires vary in scope, depth and information standards and are difficult to complete and failure to comply may result in loss of resources and business relationships.

As a result, the amendment introduces a uniform questionnaire for Hungarian companies to report ESG-related data on their operations, corporate policies and plans. The ESG questionnaire will serve as an appendix to the ESG report, which must be prepared and published by companies that fall under the scope of the ESG Act. (Gábor Czike, Veronika Kovács, László Jókay, lexology.com)