Hungary Reduces ESG Reporting Burden for SMEs in Regulatory Overhaul

Hungary's Regulated Activities Supervisory Authority (SZTFH) has implemented significant changes to ESG reporting requirements, substantially reducing the compliance burden for small and medium-sized enterprises operating in the country.

Key Regulatory ChangesSZTFH's president has signed amendments to Regulation 13/2024 (VIII. 15.), introducing a streamlined ESG questionnaire developed in consultation with the Hungarian Chamber of Commerce and Industry. The revised framework ensures data requests are proportionate to company size and geographical characteristics.

SME Protection MeasuresUnder the amended ESG Act, the following protections now apply:

Micro and small enterprises are exempt from ESG data reporting requirements until June 30, 2027Medium-sized enterprises may only provide ESG data on a voluntary basisNo written commitment to ESG reporting can be required from these companiesRisk assessments for medium-sized enterprises can be substituted with state ESG rating evaluationsRegulatory CoordinationThe changes follow close cooperation between SZTFH and the Hungarian National Bank (MNB), with the National ESG Council approving the proposals on November 21, 2025. The MNB's new ESG questionnaire now references SZTFH's ESG calculator, strengthening the tool's role across the financial sector.

The updated questionnaire includes refined questions, clarified response options, and new provisions for green space certification—all designed to support SME preparation while minimizing administrative overhead.