BBJ: What is the Hungarian Sustainable Investment and Finance Association (HuSIF), and what does it aim to achieve?

Gergely Balázs Szarka: HuSIF’s goal is to promote the spread of sustainable finance in Hungary and to encourage an increasing share of domestic private funds to flow into environmentally and socially beneficial investments. To achieve this, the association is active in several areas: conducting public awareness campaigns, promoting sustainable financial products, organizing training sessions and workshops for its members, engaging in dialogue with regulatory authorities, and developing professional concepts and recommendations to support the growth of sustainable investments in Hungary.

Its members include the largest banks, asset managers and insurance companies, as well as professional organizations. HuSIF also fits into European and international trends: similar sustainable investment forums operate in many countries, including Germany, Japan, Poland, the United Kingdom and the United States. At the European level, these organizations are coordinated by EuroSIF, which has already accepted HuSIF into its network as an observer member.

BBJ: Why did OTP Fund Management consider it important to be a founding member?

GBSz: For OTP Fund Management, this was not even a question. As a dominant asset manager, our responsibility extends beyond focusing solely on ourselves or our environmental impact. Our clients expect us to manage their savings responsibly, and today, this also means that in our investment decision-making, we give preference to companies that: can adapt to changing circumstances; have environmental protection and climate adaptation as key parts of their strategy; strive to reduce their ecological footprint; and support these commitments not only with words but also with action.

HuSIF can serve as a good platform to draw the attention of both investors and companies to the importance and financial viability of sustainable operations.

BBJ: How popular are green investments in Hungary from the perspective of fund managers and clients?

GBSz: So-called green investment funds are available from most service providers, but we do not yet feel that these products are in the focus of clients’ attention. Compared to other European countries, we see a lag in this regard. We believe that change will come, and it is our responsibility to help bring that about. We consider it essential to continuously educate clients, young future investors, and financial advisors.

A green fund should not be evaluated solely from the perspective of returns but also for the added value it provides. The companies behind the fund are selected based on strict criteria, ensuring that investments are made in firms firmly committed to mitigating the negative impacts of climate change.

BBJ: What are the current trends in ESG from a financial point of view, such as EU legislative changes, or the so-called Omnibus regulation?

GBSz: In recent months, opinions have firmed up that the rules created by the EU are excessive and place too heavy a burden on affected parties, especially on companies. In response, the EU adopted the Omnibus regulation this year, which significantly reduced the number of companies subject to mandatory reporting requirements and extended compliance deadlines. However, it is important to highlight that banks, for example, are still required to assess risks related to climate change as part of their lending activities. This means that, eventually, every company, regardless of size, will have to address this issue. In my opinion, it is not a wasted effort to address these matters, as we experience the effects of climate change in our everyday lives. Only those companies that recognize current and future trends in time and shape their strategies accordingly will be able to remain successful in the long term.

This article was first published in the Budapest Business Journal print issue of October 31, 2025.