278-25

Powering sustainability: comparing ESG strategies of Hungary’s leading
energy companies

I. Vokony(1), M. Szalmane Csete(2)

1. Department of Electric Power Engineering. Budapest University of Technology and Economics. Műegyetem rkp. 3., H-1111 Budapest, Hungary

2. Department of Environmental Economics and Sustainability. Budapest University of Technology and Economics. Műegyetem rkp. 3., H-1111 Budapest, Hungary

2025-07-25

This paper delves into the sustainability strategies of Hungary's four major energy companies—E.ON, MVM, MOL, and Opus Global—analyzing their motivations, comparative positioning, and distinctive approaches. By exploring these companies' ESG (Environmental, Social, Governance) goals and performance in depth, the study identifies best practices that transcend regulatory compliance and align with enduring business objectives. The analysis also contextualizes Hungary's energy sector within global sustainability and digitalization trends, and provides actionable insights into dynamic, transparent, and impactful sustainability metrics, including the potential application of KPI-driven methodologies such as the Balanced Scorecard. Primary data from executive interviews are integrated to shed light on how these firms implement sustainability and digital innovation in practice, and how they measure and communicate progress through KPIs.

Key words: ESG, sustainable business strategies, digitalization, performance management, Balanced Scorecard, energy companies, Hungary.

[1] Amir, A. Z., & Serafeim, G. (2018). Why and how investors use ESG information: Evidence from a global survey. Financial Analysts Journal, 74(3), 87–103. DOI:10.2469/faj.v74.n3.2

[2] Chalmers, J., Cox, E., & Picard, N. (2021). The economic realities of ESG. PwC Strategy+Business. [Online]. Available:
https://www.strategy-business.com/article/The-Economic-Realities-of-ESG

[3] Cort, T. (2020). ESG Risk Depends on Management Control Quality. In Values at Work: Sustainable Investing (pp. 35–49). Springer, Cham. DOI: 10.1007/978-3-030-55613-6_3

[4] European Commission. (2021a). Sustainable Finance and EU Taxonomy: Commission takes further steps to channel money towards sustainable activities. Press release IP/21/1804, April 21, 2021.

[5] Esses, D., Szalmáné Csete, M., & Németh, B. (2021). Sustainability and Digital Transformation in the Visegrad Group of Central European Countries. Sustainability, 13(11), 5833. DOI: 10.3390/su13115833

[6] Biró, K., & Szalmáné Csete, M. (2021). Corporate social responsibility in agribusiness: climate-related empirical findings from Hungary. Environment, Development and Sustainability, 23(4), 5674–5694. DOI: 10.1007/s10668-020-00833-2

[7] Szalmáné Csete, M. (2024). Digitalization and adaptation, from a regional perspective – A Hungarian case study. Acta Polytechnica Hungarica, 21(7), 147–167. DOI: 10.12700/APH.21.7.2024.7.8

[8] Csete, M., & Horváth, L. (2012). Sustainability and green development in urban policies and strategies. Applied Ecology and Environmental Research, 10(2), 185–194. DOI:10.15666/aeer/1002_185194

[9] Kaplan, R. S., & McMillan, D. (2021). Reimagining the Balanced Scorecard for the ESG Era. Harvard Business Review, 99(1), 28–30.

[10] International Energy Agency (IEA). (2023). Digitalisation – Enabler of Clean Energy Transitions. [Online]. Available:
https://www.iea.org/energy-system/decarbonisationenablers/digitalisation

[11] Michalski, D. (2023). Operationalization of ESG-integrated strategy through the Balanced Scorecard in FMCG companies. Sustainability, 16(21), 9174. DOI: 10.3390/su16219174

[12] Ren, M., Zhou, J., Si, J., Wang, G., & Guo, C. (2023). The Impact of ESG Performance on Green Innovation among Traditional Energy Enterprises —Evidence from Listed Companies in China. Sustainability, 16(9), 3542. DOI: 10.3390/su16093542

[13] E.ON. (2023). Our Sustainability Strategy – Climate Targets. [Online]. Available: https://www.eon.com/en/aboutus/sustainability.html (Accessed Jan. 2025).

[14] MOL Group. (2021). MOL Group to launch updated, integrated long-term strategy – “Shape Tomorrow”. Press Release, 24 Feb 2021. [Online]. Available: https://molgroup.info/en/media-centre/press-releases

[15] Wolf Theiss. (2024). ESG obligations in Hungary: Adapting to broadening regulatory demands. Wolf Theiss Client Alert, 9 Dec 2024. [Online]. Available:
https://www.wolftheiss.com/insights/esg-obligations-in-hungaryadapting-to-broadening-regulatory-demands/

[16] European Commission. (2021b). ‘Fit for 55’: delivering the EU’s 2030 Climate Target on the way to climate neutrality. Communication COM(2021) 550 final, July 14, 2021.

[17] World Economic Forum. (2020). Measuring Stakeholder Capitalism: Towards Common Metrics and Consistent Reporting of Sustainable Value Creation. White Paper, September 2020.

[18] United Nations. (2015). Paris Agreement. Adoption by the Conference of the Parties to the UN Framework Convention on Climate Change, 21st Session, Paris. (FCCC/CP/2015/L.9/Rev.1).

[19] Global Reporting Initiative (GRI). (2021). GRI Universal Standards 2021: Foundation, General Disclosures, and Management Approach. Amsterdam: GRI.

[20] Zöldy, M., Szalmáné Csete, M., Kolozsi, P. P., Bordás, P., & Török, A. (2022). Cognitive Sustainability – a New Perspective for Sustainable Development. Cognitive Sustainability, 1(1), 9–16.