OPTEN extended ESG services: new ESG Report was introduced

Less than a year after OPTEN, as an early adopter introduced its ESG index firstly on the Hungarian market, in January 2023 the company extended its ESG service portfolio. The ESG Report, compiled according to GRI standards, is an automated, online alternative to the more common manual consulting and reporting.

Although in previous years ESG efforts were only published as recommendations, from 2022 it is mandatory to report on large or multinational companies’ non-financial performance, i.g. their ESG results.

ESG: How to assess company results at the field of ESG?

1. ESG Index

Company information provider OPTEN launched the first Hungarian ESG index in January 2022. Since then, the index rates ESG activities of Hungarian businesses based on over 75 factors. The index provides separate scores for environmental, social and governance metrics to give as detailed picture as possible of the current status of each company.

2. ESG questionnaire and documentation

OPTEN has also created a free-to-use platform that companies can use to audit their own ESG operations. By filling the form, they can record their ESG activities and performance, and use the results to improve their ESG index.

3. ESG Report, an alternative solution to manual consulting

The platform is now live, and as of this January, there is also an option to purchase an ESG Report, which provides an automated online alternative to the legacy reporting service, based on manual consulting.

A simple process, without the need of consultancy

Instead of several weeks of consultation, an ESG Report can be prepared cost-effectively on the OPTEN platform in about 90-120 minutes, in line with GRI standards.

In compiling the product, OPTEN has taken into account regulatory requirements that are in force or will enter into force in the near future, such as the CSRD, SFRD, ESRS regulations, taxonomy regulations or the latest German supply chain regulations, which also affects a significant proportion of Hungarian suppliers.

To complete the report, companies must fill in the ESG questionnaire, which includes at least 44 mandatory questions. The results of the OPTEN ESG Report will highlight the most important emission and consumption data and companies can gain insight into ESG guidelines and get feedback on what they need to improve.

Then, you can request a 4-page report in Hungarian and English, which includes the OPTEN ESG index – already widely used by the banking sector -, with industry benchmark data and a detailed presentation of the ESG pillars for the company in question.

Who is affected by ESG regulations?

Sustainability is a shared interest, but ESG factors have a tangible impact on financing, profitability and growth. The Hungarian SME sector can also benefit from a number of advantages in the areas of financing, HR, Sales and Marketing. Thanks to recent regulations and increasingly conscious consumers and employees, all investments in sustainability can give businesses a significant competitive advantage, so it is worthwhile to integrate ESG factors into everyday operations, even if a company starts with small steps.

Large companies have to publish their accounts in a very transparent and regular manner and as the number of companies affected by the regulation is expected to grow, it is also worthwhile for Hungarian companies without a foreign parent company to consider ESG reporting.

The relationship between ESG and company information

As a company information provider, the development of scaling models and indices such as the ESG Index is not a new area for OPTEN.

Several of its scoring models have already become industry standards in the market; its creditworthiness index or even its risk rating are preferred by Finance and Banking industry. And its stability and crisis resilience index has quickly become a benchmark during the pandemic.

“With almost three decades of experience, we have a very detailed database of Hungarian companies, so we can accurately assess domestic companies and guide them towards more detailed, concrete tasks to take steps on the ESG path.” – said Gergely Ferenczi, Director of OPTEN’s Company Information Division.

Sustainability is not just about the financial situation of the company. Company’s processes and its relationship with the environment, and social responsibilities are also influence how viable a company is in the long term, how well it can progress, develop, and meet constantly changing expectations. If a company fails to address these issues, it will be left behind in the modern competitive environment. OPTEN offers a wide range of ESG services to help domestic businesses to develop and increase their competitiveness.

OPTEN ESG Report – available from January 2023

• Set of questions based on GRI standards
• CSRD, SFRD, ESRS regulations, taxonomy regulations – taken into account when compiling the questionnaire
• Includes the company’s OPTEN ESG Index; with main and sub-indices
• Online, automated alternative to traditional consulting
• Quick and cost-effective solution
• Compulsory and optional questions
• Available in English and Hungarian
• Can be integrated into corporate communications (Finance, HR, Sales & Marketing)

Further information: esg.opten.hu