Sustainability reporting is now required by law for many businesses in Norway.
In June 2024, the Storting adopted amendments to the Accounting Act and other relevant laws to implement the EU Sustainability Reporting Directive (CSRD) into Norwegian law. These amendments entered into force on 1 November 2024.
Sustainability reporting is about providing information about how businesses impact the environment, society and the economy. It is also about how they manage risks and opportunities related to sustainability. For many companies, especially large companies and groups, it has become a legal requirement to prepare this reporting.
Many large companies only work with companies that have a good record of sustainability reporting. Your company may therefore appear attractive to large clients if you carry out this reporting.
Sustainability reporting helps show how your company is contributing to sustainability goals and how you are working to reduce your carbon footprint and other negative impacts on society. It also gives investors, customers and other stakeholders insight into how your business is taking responsibility.
Sustainability reporting is important for several reasons. Firstly, there is a growing awareness of sustainability among both consumers and investors. We care more about how the companies we do business with affect the world around us. Secondly, many companies are required by law to report on sustainability and social impact. This also includes the companies they work with. Many large companies therefore only work with companies that can refer to sustainability reporting.
Sustainability reporting is a win-win situation for both your company and society.
Scope – who should report?
Not all companies are required to produce sustainability reports, but more and more businesses are falling within the legal requirements. Generally, those that are considered large companies or that are subject to specific regulatory requirements are required to prepare reports.
New legislation has expanded the scope to include more companies, including subsidiaries and groups with economic interests across the EEA. In addition, there are specifications for which criteria to be assessed, such as sales revenue, number of employees, and companies with shares listed on regulated markets.
Sustainability reporting should include information on several factors such as environmental, social, governance and economic impact. It should also include specifications on how your company manages sustainability risks and what goals you have set to achieve better results in this area.
There is also a requirement that the information reported be clear and easily accessible, so that it is possible for investors and other stakeholders to understand how the company works with sustainability.
Some companies may be exempt from sustainability reporting, for example if they are small or have specific circumstances that mean they are not covered by the new legal requirements.
There are also specifications for exemptions that may apply to companies with fewer than 500 employees or operating in certain regions outside the EEA.
We have listed the questions we are most frequently asked about sustainability reporting. If you have any other questions, please feel free to contact us.
Sustainability reporting goes deeper than corporate social responsibility reporting by including details about environmental impact, risk management, and future sustainability goals, while corporate social responsibility is more general and focuses on a company's ethical responsibilities.
In most cases, the company's management is responsible for preparing the sustainability report. It is important that it is accurate and that it reflects the company's actual sustainability efforts.
The deadline for submitting the sustainability report varies, but for many large companies it is tied to the financial year, and it should be submitted together with the annual report.
Sustainability reporting is not only a legal requirement for many companies, but also an important part of how businesses can demonstrate their responsibility to the environment and society. It not only helps to meet legal requirements, but also opens up new opportunities and partnerships in a market that is increasingly focused on environmental and social impact.
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