With the growing global interest in sustainability and corporate social responsibility, the application of ESG (Environmental, Social, Governance) criteria has gained a prominent role in corporate operations and investment decision-making. The research focuses on the development of ESG regulation, in particular the challenges of measuring the social (S) dimension. Although the regulation and assessment of environmental and governance factors have become increasingly standardized, the measurability of social aspects still raises several methodological problems. Previous research has highlighted the significant differences between ESG ratings and the difficulties of reliably measuring social performance, especially when using qualitative, subjective indicators. The aim of this study is to explore how the regulatory environment – ​​in particular the EU CSRD and the Hungarian ESG Act – can facilitate the harmonised assessment of the “S” dimension. The research is based on a document analysis and an examination of domestic regulatory frameworks. The results show that mandatory reporting and the introduction of the principle of dual materiality can improve the transparency and comparability of social impacts. However, the quality and reliability of reports can only be increased if companies operate appropriate internal control and certification systems. The research highlights the importance of measuring the “S” dimension and the need for regulatory support for it in order to achieve sustainable economic development.