With more than 40 people in person, we held our next ESG working group meeting on 11 September 2024, hosted by KINSTELLAR.
The focus of the meeting was on the implementing regulations for the ESG law published in August. The most anticipated from companies were the detailed rules for the fulfilment of due diligence obligations for sustainability purposes, which were published in the Decree 13/2024 (VIII.15.) of SZTFH.
The event started with a welcome speech by Dr. Balázs Tomaj, lead lawyer of KINSTELLAR Energy Law Group. In his presentation he briefly described the domestic regulatory environment of ESG.
To our great pleasure, we again accepted the invitation of Gábor Csaba Molnár, ESG Director of the Regulatory Authority for Regulated Activities, who gave an overview of the specific implementing regulations and the content of the supplier questionnaire. His presentation was followed by a lively question and answer session.
Attila Bálint, the sustainability officer of IKEA Hungary, then used practical examples to show how sustainability criteria can be incorporated into the selection of suppliers and how their implementation can be monitored and ensured.
To conclude the event, Irén Márta informed the participants about the organisation’s upcoming events.
https://bcsdh.hu/wp-content/uploads/2024/09/20240911_140937-scaled.jpg19202560Galambosne Dudas Zsofiahttps://bcsdh.hu/wp-content/uploads/2021/12/bcsdh-logo.pngGalambosne Dudas Zsofia2024-09-13 11:46:522024-09-19 09:15:52The picture on ESG is getting clearer – deeper insight into the implementing regulations of the ESG law
We held our second ESG Working Group meeting on 10 April, hosted by Allianz Hungária Zrt.
The issue of sustainability has also become an inescapable part of the insurance sector, emphasized Péter Török, Director of Accounting and Finance of Allianz Hungária Zrt. Anna Ötvös, sustainability and ESG expert, gave a deeper insight into the company’s sustainability objectives.
ESG-related legislative changes are in the focus of our working group meetings. We were delighted to have Gábor Csaba Molnár, ESG Director of the Regulated Activities Supervisory Authority (SZTFH), as our guest this time. He emphasized that the Hungarian ESG Act aims to support the competitiveness of Hungarian companies, to reduce the increasing information demand of external actors, to help them prepare for ESG reporting and certification, and to ensure predictable economic planning by reflecting the legislation of the European Union and the Member States. In his presentation, he also touched on the latest developments, indicating that several amendments to the ESG Act are expected in the near future, and the related implementing regulations are being prepared.
In the second half of the meeting, we further explored the theme of human values, the focus of the year. How important is work in the lives of Hungarian workers? How much do we like working from home? What do workers want to learn? Sándor Baja, Managing Director of Randstad Hungary Kft., gave us a presentation on the recent, and in many cases thought-provoking, results of the Randstad Workmonitor 2024 survey.
Companies can do most to reduce inequality through their employees. Andras Iljicsov, Managing Director of Spreadmonitor Ltd., invited Sara Pásztor, Managing Director of Skilly, to the meeting, who presented a new opportunity for participants in the employment of people with disabilities.
What is a life-long manager like? How to focus on people as an asset? What can managers learn from their subordinates? Zoltán Gazsi, Managing Director of Eisberg Hungary Kft., discussed these questions with Irén Márta, Director of BCSDH, in the context of her recently published book “Emberszemlélet”.
https://bcsdh.hu/wp-content/uploads/2024/04/IMG_20240410_140505-scaled.jpg19162560Galambosne Dudas Zsofiahttps://bcsdh.hu/wp-content/uploads/2021/12/bcsdh-logo.pngGalambosne Dudas Zsofia2024-04-12 13:07:382024-05-28 13:11:36Human value and ESG: can a human approach move companies forward?
Budapest, 13 November 2023 – Nine out of ten companies expect to see business benefits from ESG reporting within five years, and more than half of the BCSDH member companies surveyed report regularly. The social and governance leg of ESG is at the forefront of importance, with companies preferring to systematically collect and process this type of data. Biodiversity, on the other hand, is barely represented within the environmental dimensions, and strengthening this could be a priority for companies. There are several factors slowing down the integration of ESG aspects in companies, the main barriers being too many standards and the difficulty of producing data/KPIs of sufficient quality.
In 2023, the Business Council for Sustainable Development in Hungary (BCSDH) conducted its second ESG survey among its member companies, with KPMG as its professional partner. In the survey, 70 companies from 14 industries shared their experiences along 22 questions, in which the respondents covered, among other things, their ESG reporting and data collection habits, the main motivating and limiting factors related to ESG, and the role of ESG in the life of their organisations.
90 percent of survey respondents believe that ESG-based reporting could benefit their business in the next 5 years, and six out of ten companies (61 percent) already regularly produce ESG reports, most often at the international or parent company level and based on the GRI standard. Many have also come across the upcoming legislative requirement for ESRS standards under the CSRD, but their uptake is still low. A similar proportion of companies that already prepare ESG reports and those that are planning to do so prefer a standalone (34 percent) or integrated (33 percent) reporting format for the disclosure of their ESG data. The main drivers for ESG reporting include enhancing reputation, meeting shareholder expectations, and meeting regulatory requirements.
61 percent of companies believe they are prepared for reporting under the CSRD, and have a practice of reporting, while 84 percent publicly disclose information about their company’s performance.
In contrast to the 2021 survey, when companies rated the environmental dimension of ESG as the most important for their operations, this year there is a greater emphasis on social and governance issues, and this is reflected in their data collection and management practices. 85% of the companies surveyed collect some form of ESG data, most commonly in the areas of health and safety, employee information such as education, and carbon emissions. For at least one ESG topic, 78 percent of responding companies set targets, but this proportion will certainly become more robust in the future along the lines of CSRD expectations. These targets are discussed occasionally in management meetings by less than half of the member companies.
However, the picture is different when looking at the dimensions included in ESG reports. In this respect, environmental areas (such as carbon emissions, and energy consumption) continue to stand out. Biodiversity is the area where the least data is collected: six out of ten companies surveyed (62%) do not collect any data at all, although biodiversity has become a key sustainability issue this year and in the coming period, and is an area where progress is needed.
37 percent of responding member companies have already requested data from their stakeholders on carbon emissions, ethical operations, circular economy, and alternative energy and efficiency, while half of their customers (54 percent) are requesting data along environmental and governance dimensions. From the financing side, one in four companies is still asked to show progress on carbon emissions, alternative energy and efficiency, waste management, and health and safety.
In terms of organizational functioning, 72% of the companies surveyed have a dedicated ESG manager at the decision-making level. Half of companies have a dedicated ESG specialist in their sustainability department, a significant shift from two years ago.
Lack of sufficient detail in the legal requirements, too many standards, and insufficient quality of data/KPIs were the main constraints to incorporating ESG considerations in companies, as highlighted by respondents.
https://bcsdh.hu/wp-content/uploads/2023/06/ESG-a-fenntarthatosagi-keretrendszer-1.png6281200Galambosne Dudas Zsofiahttps://bcsdh.hu/wp-content/uploads/2021/12/bcsdh-logo.pngGalambosne Dudas Zsofia2023-11-30 15:40:202023-11-30 15:40:20An overwhelming majority of companies say ESG reporting is a business advantage – BCSDH’s second ESG survey
https://bcsdh.hu/wp-content/uploads/2023/11/20231109_140359-scaled.jpg19202560Galambosne Dudas Zsofiahttps://bcsdh.hu/wp-content/uploads/2021/12/bcsdh-logo.pngGalambosne Dudas Zsofia2023-11-10 15:27:072023-11-30 15:28:32Presenting the results of our latest ESG Survey – ESG Working Group meeting at 4iG
https://bcsdh.hu/wp-content/uploads/2023/09/1695873993778-scaled.jpg19162560Galambosne Dudas Zsofiahttps://bcsdh.hu/wp-content/uploads/2021/12/bcsdh-logo.pngGalambosne Dudas Zsofia2023-09-28 15:08:082023-11-30 15:29:42We are getting closer to the launch of the CSRD – focus on regulatory details at the ESG working group meeting
Social issues are receiving increasing emphasis in the business world, as growing inequalities carry systemic risks.
What can companies do to reduce social inequalities? What workforce trends should they prepare for in the near future? How can we support innovation in social issues by aligning with values? What psychosocial risks are present in the workplace? These were the topics that were discussed during our joint ESG and Social Capital Working Group meeting on April 27, 2023, with the participation of around 35 people, hosted by Randstad Hungary.
The participants of the joint working group were welcomed by Gréta Nagy, leader of the ESG Working Group and CEO of Dandelion, and Attila Kelemen, leader of the Social Capital Working Group and President-CEO of ProSelf International Ltd. They emphasized that social issues are gaining increasing importance in the business world, as the success of every organization depends on its people, i.e., colleagues, partners, and consumers.
Sándor Baja, the CEO of Randstad Hungary, presented the latest trends and indicators characterizing the Hungarian labor market in his presentation. He emphasized that in the uncertain economic environment, the financial stability of employers has become significantly more important. At the same time, the importance of work-life balance has further strengthened compared to the previous year.
Ágnes Vörös, Head of HR and Administration Hungary at BASF, and Kristóf Kovács, founder and trustee of the Invisible School Foundation, presented the Invisible School program, an exemplary initiative where volunteers support the academic development, vocational orientation, and social integration of children living in temporary homes through mentorship programs, personal tutoring, and summer camps.
Lajos Csaba, Deputy Head of PR and Government Relations at Richter Gedeon Nyrt., presented how the Richter Anna Prize helps the company contribute to the development of social issues such as education, healthcare, and pharmaceuticals. They support innovative ideas aimed at improving working conditions and service quality. The winning projects can serve as best practices on a wider scale.
Gréta Nagy‘s presentation focused on the issue of workplace stress. She emphasized how creating a trusting atmosphere, ensuring safety, and establishing balance greatly contribute to the mental well-being of employees.
To conclude the event, Zsófia Galambosné Dudás, Professional Project Manager of BCSDH, presented the organization’s plan for the new CSRD training.
https://bcsdh.hu/wp-content/uploads/2023/04/PXL_20230427_120918363-scaled.jpg14402560Galambosne Dudas Zsofiahttps://bcsdh.hu/wp-content/uploads/2021/12/bcsdh-logo.pngGalambosne Dudas Zsofia2023-05-23 13:01:512023-06-02 08:37:13Safety, Balance, Values – What can we do in the Society of Burnout? – ESG and Social Capital Working Group meeting
How are ESG aspects embedded into company operations? The meeting of the BCSDH ESG working group also discussed the theory and practical implementation of this. Eleanor Leach introduced the WBCSD – World Business Council for Sustainable Development’s guidance developed in collaboration with the Institute of Internal Auditors on embedding ESG and sustainability considerations into the Three Lines Model. Afterwards, we heard an exciting presentation from Mátyás Bellaagh, Director EHSQ, CSR & BIM at Colas, about the challenges and opportunities of ESG integration and the importance of stakeholder involvement in the entire process.
https://bcsdh.hu/wp-content/uploads/2022/09/montazs-final.png5761024Takacs Ivetthttps://bcsdh.hu/wp-content/uploads/2021/12/bcsdh-logo.pngTakacs Ivett2022-09-26 20:11:262023-02-27 00:16:54How are ESG aspects embedded into company operations?
Our fourth ESG working group meeting on 19th October exceeded all our expectations. Our guests speakers were Sándor Baja, Managing Director of Randstad Hungary Kft. and Björn Claussen, Regional Head of Multinational Coverage – Central Europe BNP Paribas, winner of the “For a Sustainable Future” Award in Change Leader category.
Sándor led us through the current Hungarian labor market situation, summarizing the challenges and possibilities, partially driven by Covid-19. We can currently see a clear gap between the number of people retiring vs. the number of 18 years old population. As the Eastern European countries are seemed to recover faster than the Western countries, we can witness some migration back to Hungary. Additional challenges are given by the facts that governance is decreasing the number of work permit issued, meanwhile the number of high education graduates are also decreasing. Hungary is not well prepared for the future job market, where continuous automation plays a key role, making mid-level jobs disappear. Today we can say that automation is creating more jobs then eliminates. STEAM education is rising in the western countries while in Hungary we are only around 20% and female students are even more underrepresented in the area. Regarding mobility we see a rising trend on urbanization as well as connecting small villages to the big company circulation due to remote and hybrid work possibilities.
Sándor also shared a new Randstad survey, what was conducted with the involvement of 7600 people, covering the topics of Covid-19 effect, employer of choice, remote work, employee retention and employee drivers.
Some of the key highlights are the following:
The IT sector is currently the most attractive, followed by telecommunication and business services. Retail industry is gaining popularity and currently finance is the less attractive option for the candidates.
There is a clear message for companies about remote work. Only 10% would like to go back to the office 100%, 25% prefers not to return at all and 65% is opting for hybrid solution.
There were job losses due to Covid in a higher % then we see in the official statistics, but many people were able to integrate to another sector. In 2021 21% was still worried to lose their job due to Covid-19.
The topmost important drivers are attractive salary and benefits, pleasant working atmosphere, job security, financial health, and good work-life balance. Sándor was suggesting using these parameters for job postings.
The results also show that from ESG point of view, giving back to society and company reputation are on the 9th and 10th place of the list. For around 30% of the people is important the ESG factor when looking into employers’ offering. We can see a bit higher number in case of women and high education graduates. Sándor was suggesting keeping this information available, but not to build the job advertising strategy around it.
Björn, representing the finance industry, started with a reflection on the Randstad report, how the sector lost its charm and now aims to offer more attractive opportunities for candidates. The role of a finance expert is becoming more and more advisory, who supports their clients to gain knowledge on global emerging trends, risks, and opportunities for a sustainable future. BNP Paribas has been carbon neutral on its operational scope since 2017 and was recognized multiple times for their work around ESG and sustainability worldwide.
The bank is redesigning its strategy to be even more action oriented by realigning their activities with the SDGs and how they can land money in another way. 15% of their investments is contributing strictly to the achievement of the UN SDGs. During the last 5 years they tripled their investment on renewable energy sector and reached their goal with two years in advance. They also started to invest in startups for energy, energy transformation, and efficiency areas, where after the 1st 100 million EUR spent, they partnered with another organization to further invest in the energy transition.
Bjorn also shared with us, what are the roadblock in their journey and how they are trying to overcome them. To reach their 2 Celsius commitment, BNP Paribas is gradually exiting some of the key industries as tobacco and coal. To make clients realize that the change is happening, they roll-out their exit strategies at the same time on a global scale, talking to clients one by one. Challenges are differently present in countries, where the governance is not committed on the same way towards the massive emission reduction. Beside the advisory approach, Bjorn continuously highlighted the importance of education and raising awareness around ESG, what is also part of their client management strategy.
BNP Paribas also conducted a survey on ESG recently. Some of the core findings are the following:
ESG know-how: 3 groups identified, leaders, explorers, observers
More investors are integrating ESG in their portfolio, data remains the primary barrier for integration and the social pillar is the hardest to measure
Investors engage with clients about ESG as part of their strategy
Shift from marketing to brand reputation as primary driver for ESGs
To watch a short video about the survey, click here.
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https://bcsdh.hu/wp-content/uploads/2021/10/2021-10-19-32.png4461024Takacs Ivetthttps://bcsdh.hu/wp-content/uploads/2021/12/bcsdh-logo.pngTakacs Ivett2021-10-20 09:38:352023-02-27 00:53:30We held our fourth ESG working group meeting this year
At our third ESG working group meeting this year, remarkable presentations have been held. The participants got to know to ALTEO’s Sustainability Barometer by Attila Chikán Jr. (ALTEO). Later, the Ecovadis evaluation of ALD Automotive Hungary have been explained by Annamária Székács (ALD).
The aim of the ALTEO’s Sustainability Barometer was to see how a potential investor thinks about sustainability, thus have a deeper understanding on people’s approach on sustainability. ALTEO’s survey was conducted among Hungarian Internet users between the age of 20 and 65 with a sample size of 1.000 people representing the gender, age and educational background of the population, and the type of settlement where they live. The questions focused on the awareness of environmental problems, concrete actions how people protect the environment, moreover how they deal with their investments.
The majority of Internet users in Hungary between the age of 20 and 65 are interested in the environment protection, 82% believe that environmental problems also impact their lives, but 32% are not yet convinced about it currently being one of the most important tasks that people have. According to 80% of the respondents, everyone is responsible for environmental problems, while 19% blames corporations, countries and global organizations. Women more typically share a sense of community, while men tend to pass responsibility on to companies.
Attila also covered the topic of investments. The majority claimed that they would prefer a financial product if it also took sustainability into consideration.
Further information can be found about the results in hungarian here.
Annamária shortly introduced their company to the participants, as ALD Automotive Hungary is a fresh member of our community. Their beliefs say, that economic development is no longer possible without environmental progress, thus the company joined the road of sustainability on a group level. They find third party evaluation a great opportunity to challenge themselves. ALD Automotive Hungary has been assessed by Ecovadis first in 2018, and had been granted a gold recognition level.
Annamária then summarized the basics of the Ecovadis methodology, which follows four topics, environment, labour and human rights, ethics and sustainable procurement. They received a very detailed, up-to-date report on their strenghts and the areas that need improvement, also sharing hints how to improve each area of their company. This way they have a very clear view on where they are and where they are headed to, also receiving a silver medal in 2020.
It is of great importance for them to bring sustainability close to people, their employees, partners and clients, as the presentation was closed with their own CSR programs. Her presentation confirmed, that Corporate Social Responsibility is in the heart of their business.
https://bcsdh.hu/wp-content/uploads/2022/01/Screenshot-2021-06-03-14.00.57.png4481024Takacs Ivetthttps://bcsdh.hu/wp-content/uploads/2021/12/bcsdh-logo.pngTakacs Ivett2021-06-07 08:57:412023-02-27 00:55:36Inspiring presentations have been held on this year’s third ESG working group meeting
