More than 2,500 Hungarian companies will be required to report on ESG from 2025 under current legislation, and the range of stakeholders could be even wider through supply chains. A large number of specialists will be needed to prepare the reports, and their training has started in three new Hungarian language programs at Corvinus: two postgraduate programs (ESG Management and Economist Specialized in ESG) and a 200-hour ESG consultant partial knowledge training.  

The ESG Club was established with the aim of providing a networking and knowledge-sharing opportunity for professionals participating in these programs beyond their studies. The event was opened by Attila Jámbor, Head of the Institute of Sustainable Development, who said that the ESG portfolio of the University, based on the close coordination of education, research and Club activities, had been created in line with the previous plans of the Institute.  

For the first time, three external lecturers, István Salgó, Honorary President of the Business Council for Sustainable Development in Hungary (BCSDH), György Szege, Director of ESG and Sustainability at MBH Bank, and Ákos Veisz, Managing Director of BDO’s ESG Advisory, participated in the panel discussion, where they were interviewed by Dr. Katalin Ásványi, Dean for Sustainability at Corvinus and Program director of the ESG programs.  

ESG is a framework for assessing the sustainability performance of companies and organizations in three main areas: environmental, social and governance. Environmental factors include, for example, carbon reduction, sustainable use of resources and adaptation to climate change. The social dimension concerns employee well-being, diversity and community involvement, while the governance aspects include ethical business practices, transparency and responsible decision-making.  

ESG is no longer just an environmental issue, but also a business one  

ESG is becoming an increasingly important factor in investor decisions, as it helps to assess the long-term sustainability and risks of companies, making it a key factor in both ethical and economic terms, as highlighted by the panelists.  

Although risks related to serious environmental problems have now emerged in almost all sectors, some areas are particularly affected. Experts highlighted, for example, agriculture, where the issue of droughts and how to deal with it has become a major concern for businesses and companies, but banks also have to take sustainability and the risks of natural challenges into account when deciding on financing.  

Consumer behaviour is also a key issue when it comes to the business side of ESG. The demand for sustainable and ethical products, together with consumer awareness and access to information, means that a company without ESG considerations can easily find itself at a competitive disadvantage. Bad practices also become a significant risk to consumer confidence.  

The process can be slowed down, but not reversed  

The current global political and economic changes raise the question of how the changing regulatory environment and the shadowing of sustainability issues will affect ESG and the sector as a whole, to which the guests gave an optimistic answer.  

While the green transition process may indeed slow down, experts say, they do not fear that it will be reversed. Once you have started to understand, measure and report your ESG performance, you are unlikely to reverse it. There may be some loosening and adjustments in regulation and reporting complexities, but the overall picture remains that becoming more sustainable and transparent will be in everyone’s interest. Rather, the slowdown will be that those who have not yet moved and are only focused on regulatory compliance will not be in a hurry to jump in, but those who have already moved will not be interested in backtracking.  

The business aspect was also highlighted by experts here, which is why the process cannot be reversed. Even if the regulatory environment is loosened, the consumer expectation will still be there for the company to operate sustainably, ethically and transparently. This also gives a competitive advantage to those who not only comply with the rules but go beyond them.  

ESG is a tool, not the holy grail of sustainability 

Sustainability has become a buzzword, but we talk less about what we want to sustain and how. Participants in the discussion also stressed that ESG is not an immediate and perfect solution to sustainability challenges, but rather a tool to make operations more transparent and conscious.  

To make the environmental and social impacts real, it is no longer enough just to comply with the rules, intrinsic motivation is also needed. They also agreed that this motivation must come from the leaders. In other words, real transformation can be achieved where the managers or shareholders become committed to the cause. So, this can also play an important role for consultants in convincing them why ESG should be addressed, whether in business or sustainability terms.  

In terms of key skills, a precise knowledge of regulation and staying up to date with changes will remain crucial in order to be a good ESG professional. It is also important to be well informed about current economic, social and environmental issues, so that you can communicate credibly on the subject and adapt to new challenges.  

Assertive communication is also important, as ESG will only work if the whole company embraces it and actively works towards its success. This requires convincing employees from very different backgrounds that these are important issues, which are vital not only for the future of the company, but also for our common future, the future of our children.