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Obligation, Opportunity or Value? What Does ESG Deliver Beyond Reporting?

The true value of ESG does not necessarily lie in the report itself. A well-designed measurement and data collection framework can provide a more accurate picture of a company’s operations, highlight areas for improvement, and support business decision-making. At the BCSDH ESG Working Group meeting on 17 September 2026, we explored through corporate examples what ESG can deliver beyond compliance.

Participants were first welcomed by our host, Krisztina Vass, Managing Director of iData Kft., who presented iData’s approach to ESG and its sustainability efforts. Through fuel savings, route optimisation and measurable KPIs, the company’s telematics solutions also help its clients improve their environmental performance. In its own operations, iData also places a strong emphasis on equal opportunities and diversity.

János Handó, Founder and Owner of Katica Tanya Experience Centre, opened with a deliberately provocative question: is ESG an obligation or an opportunity? For him, it is clearly the latter, as companies go through a learning process that helps them move forward, set objectives and identify areas for development. He also pointed out that traditional financial indicators alone do not reveal the environmental, social and governance “cost” of a company’s performance. One important role of ESG is therefore to make medium- and long-term impacts visible and measurable alongside short-term financial results.

Bettina Baksa, Head of Sustainability at UBM Group, presented the business benefits the company has gained from voluntarily embarking on ESG reporting. One tangible outcome of the process is its internally developed BI–ESG dashboard, which brings ESG data that was previously managed across disparate sources into a single, integrated system. The resulting greater transparency, traceability and comparability also support the integration of ESG data into business decision-making.

Zsófia Galambosné Dudás, Professional Project Manager at BCSDH, provided an overview of the latest European and Hungarian regulatory developments. The main direction of the ESRS review is significant simplification and a stronger focus on materiality, while the voluntary reporting framework is also placing greater emphasis on proportionality and limiting data requests across the value chain.

The meeting continued with a professional discussion, during which participants shared their current challenges and experiences with one another.

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The climate act may enter a new phase in the fall of 2026

In 2025, the Constitutional Court struck down the 2030 emissions reduction target in the current law and ordered the National Assembly to enact new, more ambitious legislation by June 30, 2026.

In July, more than 200 civil society and professional organizations presented their own draft legislation, which they also submitted to the government and members of the National Assembly. The government’s fall legislative agenda includes an amendment to the Climate Protection Act, so the official legislative process can begin in the coming period, which is expected to be accompanied by professional and public consultations that may also involve the corporate sector.

In addition to emissions reduction, the proposal places a strong emphasis on adaptation and climate resilience, and would involve companies, financial institutions, local governments, government agencies, the scientific community, and civil society organizations.

Renewable Energy, AI and Team Building at Katica Tanya

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Deforestation is no longer just an environmental issue – it is becoming a business compliance obligation

We cannot exist without forests: in addition to providing a habitat for numerous species and acting as carbon sinks, forests also provide a vital source of income for approximately one quarter of the world’s population.

The scale of forest loss worldwide has reached alarming levels: according to the Food and Agriculture Organization of the United Nations (FAO), 420 million hectares of forest were lost to deforestation between 1990 and 2020, an area equivalent to the size of the EU.

Deforestation and forest degradation affect the EU’s environmental objectives, including efforts to combat climate change and biodiversity loss, but they also have implications for human rights, peace and security. The EU is therefore committed to tackling global forest loss. A key objective is to improve the health of existing forests and significantly increase sustainable, biodiverse forest areas worldwide.

To achieve this, the EU adopted the Deforestation Regulation (EUDR – Regulation (EU) 2023/1115), which aims to minimise deforestation and forest degradation associated with agricultural commodities imported into the European Union.

The products covered by the Regulation are listed in Annex I. These include products that contain cattle, cocoa, coffee, oil palm, rubber, soya or wood, or that have been fed with or made using these commodities.

Every operator or trader who places the commodities specified in the Regulation on the EU market or exports them must demonstrate that the products do not originate from land that has recently been subject to deforestation or contributed to forest degradation. Otherwise, they may not be released for free circulation in the EU, exported from the EU, or traded within the EU.

Medium-sized and large companies must comply with the legal requirements from 30 December 2026, while micro and small enterprises must comply from 30 June 2027. However, for certain newly included product categories, the compliance obligations will only apply from 30 December 2027.

More information: European Commission

 

 

BCSDH ‘Transform Talks’ 2026 – Focus on Climate Resilience: Why Do We Wait for Shocks Instead of Preparing?

The impacts of climate change are no longer challenges of the future. Heatwaves, supply chain disruptions, energy price fluctuations, labour market pressures and increasingly frequent extreme weather events are shaping the business environment. The question is no longer whether there will be further shocks, but how prepared and resilient we are.

At this year’s ‘Transform Talks’ executive roundtable discussions, the CEOs of member companies met on four occasions to explore the topic of climate resilience in depth. One of the most important insights from the discussions was that a significant proportion of organisations still primarily react to crises, while real competitive advantage may lie in proactive, conscious preparation.

Resilience, however, does not simply mean adaptation. Rather, it is the ability of a company to remain operational in the face of unexpected situations, to learn, develop and even create new opportunities. Climate resilience is therefore not an environmental or technical issue, but a business continuity, human and competitiveness factor.

A recurring theme throughout the discussions was the tension between short- and long-term thinking. Corporate operations are often driven by quarterly results and short-term return expectations, while climate risks typically emerge over a longer time horizon. Yet it is becoming increasingly clear that these risks are, in fact, financial risks. The question, therefore, is not whether we can afford to invest in resilience, but whether we can afford to postpone it.

What makes an organisation truly resilient? Systems that are able to rely on a variety of solutions, are not dependent on a single critical element, have strong collaborative networks, and have reserves to manage unexpected situations prove to be more resilient.

The human side of resilience is equally important. Heat stress, climate anxiety, health risks and employee well-being have a direct impact on organisations’ ability to operate. The successful companies of the future will not only focus on technological or infrastructure developments, but will build a corporate culture that supports learning, adaptation and collaborative problem-solving.

The role of leadership by example is indispensable in this. Equally important is that companies do not seek answers in isolation. Climate resilience is increasingly becoming a value-chain-level issue, in which cooperation among suppliers, partners, local communities and financiers is decisive. It is no coincidence that, according to experts, one of the greatest opportunities of the next decade lies precisely in strengthening collaboration.

Perhaps the most important lesson is that resilience is not a standalone project or another compliance task. Rather, it is a mindset that helps companies create value even amid uncertainty. The only question that remains is: will we really wait for the next shock, or will we start building the company of the future while there is still time?

The concrete results of the ‘Transform Talks’ Executive Roundtable Discussions and our annual professional work will be presented at the BCSDH Business Lunch on 19 November.

Special thanks to the hosts of the events for providing the venues! The related photo galleries and LinkedIn posts can be viewed by clicking on the link:

 

12 May Galery LinkedIn post
19 May  Galery LinkedIn post
10 June  Galery LinkedIn post
18 June   Galery LinkedIn post

Thank you to this year’s sponsor of the Time to Transform 2030 program!

Sponsor of the carbon-conscious organization of these events:

 

“Blessed” Water and the Flutter of Insect Wings – BCSDH Executive Weekend at Szentkirályi Magyarország and SolServices Ltd.

How can ideas, enthusiasm and perseverance turn a brand into the leading mineral water brand on the Hungarian market? What responsibility does a mineral water producer have in the field of sustainability? Can the level of biodiversity be assessed based on birdsong and the vibrations of insect wings? What can a company do within its own premises to restore biodiversity? At this year’s traditional BCSDH Executive Weekend, 22 business leaders and their partners received answers to these questions. During the inspiring two-day programme, participants gained insight into the operations of two of our member companies: they visited Szentkirályi Magyarország’s production facility in Szentkirály and SolServices Ltd.’s nature-friendly solar park. The programme also provided an opportunity for informal exchanges of experience and for strengthening professional relationships.

The first stop of the programme was Szentkirályi Magyarország’s production facility in Szentkirály, where Attila Chikán Jr., President of BCSDH, welcomed the participants. Levente Balogh, founder of the company, then presented the key milestones in the company’s development through vivid and entertaining stories. During the site visit, participants learned how mineral water from a spring located in a small consecrated chapel in the middle of a park at the heart of Szentkirály reaches the state-of-the-art bottling lines. A presentation by Nikolett Fekete, the company’s Head of Sustainability and PR, also provided insight into the company’s sustainability efforts, as well as the practical implementation and challenges of circular packaging solutions.

Following the professional programme, participants explored Kecskemét’s city centre on a short guided walk, before continuing their discussions over an informal dinner hosted by Szentkirályi Magyarország.

On the second day, at the invitation of SolServices Ltd., participants visited Lumen Park in Szolnok. Following a welcome by Dr Gábor Farkas, Managing Director, they toured one of Hungary’s largest solar parks, guided by Dr Ágnes Takács, the company’s Head of Project Development, and experts from RenewEarth.
What makes the site unique is its strong focus on biodiversity conservation alongside renewable energy generation. Participants learned about the measures implemented as part of the company’s nature-friendly solar park development concept, as well as the biodiversity initiatives that have significantly increased biological diversity at the site. Surveys conducted to date indicate an enrichment of local flora and fauna, demonstrating that renewable energy generation and nature conservation can be successfully aligned even in a large-scale development.
The company also plans to automate future monitoring and measurements, potentially calculating indicators of species diversity and abundance based on birdsong and insect wing vibrations.

The programme continued at the RepTár Szolnok Aviation Museum, where participants witnessed the ceremonial signing of a strategic partnership agreement between SolServices Ltd. and Hungarian Interchurch Aid.
The cooperation clearly demonstrates that the environmental and social dimensions of sustainable development are closely interconnected. By providing strategic rather than ad hoc support, companies can give aid organisations greater flexibility to develop long-term solutions for people in need across Hungary, particularly within local communities.

We would like to thank the leaders and colleagues of Szentkirályi Magyarország and SolServices Ltd. for their warm hospitality, openness and the highly informative professional programme.

Is sustainability over?

With this provocative question, Peter Bakker, CEO of the WBCSD – World Business Council for Sustainable Development opened this year’s annual meeting in Switzerland, in front of more than 600 business representatives from all over the world.

 

And it is no coincidence. Everywhere, companies are under pressure, and sustainability areas and budgets increasingly have to demonstrate their value to the business.

At a time of dizzying change, where the geopolitical and climatic environment put us in front of quite unprecedented challenges, companies operate under a lot of pressure, and highlight risks such as
🌐 Disruptions in value chains and doubts about the future of globalization
⛈️ extreme weather events and increased insurance costs
💻 AI’s impacts on the workforce

All this generates uncertainty… but also a huge opportunity.
To take advantage of it, we must change our perspective:
👉 Sustainability cannot be an “extra” or a “nice to have”
👉 it has to be understood as a strategic investment.

An excellent example is how the reduction of the carbon footprint, the progressive change in the composition of the energy matrix, the development of the carbon market and the electrification of consumption have been able to generate competitive advantages at the company and country level.

The challenge?
Today more than ever, sustainability needs to show its value with numbers, with measurable impact, a solid business case and demonstrate its ROI, without falling into short-termism.

This implies a profound change:
💹 Sustainability teams must speak the language of the business.
🤝 CFOs, boards and financial markets become key allies.
🌊 The risks of adaptation and nature require strategic analysis and investment.

Because sustainability has a direct impact on the success of the company on 3 levels:
1️⃣ Company level → financial performance, valuation, resilience
2️⃣ Product level → design, value proposition and customer preference
3️⃣ Value chain level → security of supply and operational continuity

So, is sustainability over?
Quite the opposite.
He grew.
He matured.

Long-Term Goals and Purpose-Driven Initiatives at the BCSDH Social Capital Hub

What can a company do for people along its value chain? This was the opening question at the recent meeting of the BCSDH Social Capital Creative Hub, which was hosted by Lidl Hungary on May 13, 2026.

Guests were welcomed by Zita Szlavikovics, Managing Director of Lidl Hungary.

At the beginning of the meeting, presentations by Dorottya Takács, HR Director, and Szabina Seregi, CSR Manager, gave us insight into the diversity of Lidl’s social activities. The company implements numerous initiatives not only for its employees but also for external stakeholders, as they believe that “it is truly worth valuing human worth.”

Following the presentation, an exciting, inspiring, and open discussion began, covering the implementation of long-term sustainability goals, the measurement of these goals, as well as the role and significance of “purpose-driven initiatives.”

In the second part of the meeting, Dr. József Kolossa presented the results of last November’s Future Planning process, highlighting the values that connect the members of our community and form the basis of our shared thinking.

Business Council for Sustainable Development in Hungary
1118 Budapest, Ménesi street 9/a.

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