ESG Reporting: a Fad or the Path to a Sustainable Future?

Sustainability

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ESG (Environmental, Social, Governance) considerations are becoming increasingly important in corporate life. Investors, consumers and employees alike expect companies to operate responsibly and be mindful of the environment and society. However, ESG compliance is not just a matter of good intentions, but increasingly a business interest.

There are a number of methods for measuring and evaluating ESG compliance. In Hungary, one of these is the Opten ESG questionnaire, which provides a comprehensive picture of a company's sustainability performance. The questionnaire examines more than 75 parameters, from environmental measures to employee well-being and ethical business practices.

Assessing Sustainability

The purpose of the Opten ESG questionnaire is to provide companies with an objective picture of their ESG performance. When completing the questionnaire, companies must provide detailed information on their energy and water consumption, waste management, emissions, employee diversity, training programs, ethical business practices, and transparency of corporate governance, among other things.

About the Opten ESG Index:

The OPTEN ESG (Environmental, Social, and Governance) questionnaire provides a comprehensive overview of a company's sustainability practices. The purpose of the questionnaire is to enable companies to assess and disclose their ESG performance, thereby contributing to a more sustainable economy.

The questionnaire covers almost all areas of a company's operations. Environmental questions cover energy and water consumption, waste management, emissions and environmental investments. In the area of corporate social responsibility, the questions focus on the treatment of employees, diversity and inclusion, training and human rights. Corporate governance issues relate to ethical business practices, transparency and anti-corruption.

Completing the Opten ESG questionnaire can bring many benefits to companies. It can help identify sustainability risks and opportunities, improve environmental and social performance, strengthen brand image and reputation, and meet the growing expectations of investors and consumers.

The result of the questionnaire is a score from 1 to 10, expressed by the Opten ESG Index. The higher the score, the better the company's ESG compliance.

A high ESG score can bring many benefits to companies, including improving their reputation, making them more attractive to investors and employees, and helping to reduce risks and costs.

Achieving a Near-perfect Rating: a Case Study

Club Tihany Resort recently achieved a near-perfect 9/10 score in the Opten ESG assessment, putting it at the forefront of Hungarian accommodation providers and caterers.

Behind the company's success is a comprehensive and long-term sustainability strategy, developed and implemented by Mihály Tóth, head of service development at Club Tihany Resort.

According to him, environmental protection is a top priority for Club Tihany Resort. The company has made significant investments to increase the use of renewable energy sources. In 2023, some 45% of their energy use was already covered by renewable sources, and they have set a target of 60% by 2025.

They have also achieved significant results in the area of waste management. They have set a target of reducing waste by 50% by 2024 and have introduced a number of measures to this end, such as extending selective waste collection and increasing recycling.

The establishment also paid special attention to corporate social responsibility. The company is committed to ensuring the well-being of its employees and places great emphasis on promoting diversity and inclusion. Approximately 70% of its employees are women, and the gender balance in management positions is also balanced.

They also have a strict code of ethics and weigh all their decisions in terms of sustainability.

Results of the ESG compliance projects

According to Opten's report, Club Tihany Resort has taken the following measures to improve its ESG rating:

Installation of photovoltaic systems and heat pump air conditioners: These measures have contributed to reducing the environmental impact and harmful emissions.
Introduction of waste management practices: The food rescue campaign and the mulching of green waste are aimed at reducing waste.
Promoting diversity and equality in the workplace: Club Tihany is actively working to create gender equality in both the labour market and in management positions.
Sustainability and anti-corruption training: In addition to professional training, the company also supports the development of its colleagues with sustainability and anti-corruption training.
Transparent and sustainable corporate governance practices: The company's management is committed to transparent and sustainable operations.
Preference for domestic suppliers: Nearly 90% of Club Tihany Resort's suppliers are domestic companies, thus supporting the local economy.

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