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Regulatory Reporting Requirements in Finance Take Center Stage in Norway

As sustainability reporting requirements continue to evolve and expand, companies are increasingly recognizing their importance in terms of market access and competitiveness. The concept of ESG (Environmental, Social, and Governance) has become a critical factor in business decision-making, with investors and financial institutions scrutinizing companies’ performances on these fronts.

New Regulatory Framework in Norway

The Norwegian Act on Sustainable Finance, which implements the EU Taxonomy Regulation and Disclosure Regulation (SFDR), came into effect on January 1, 2023. The Act imposes significant reporting obligations on companies, financial market participants, and financial advisors within its scope.

European Union’s Sustainability Reporting Directive

The European Union has recently adopted a new directive on sustainability reporting, the Corporate Sustainability Reporting Directive (CSRD), which replaces the previous Non-Financial Reporting Directive (NFRD). The CSRD is included in Section 3-3(c) of the Norwegian Accounting Act and expands reporting requirements, enabling investors, stakeholders, and the public to access more reliable information about a company’s sustainability record.

Implementation Timeline

Norway has indicated that it will follow the EU timeline for gradual implementation of the directive, with businesses of different sizes affected. The Ministry of Finance has stated that the directive is EEA-relevant, making it crucial for companies to familiarize themselves with the new requirements.

What Businesses Need to Do

To ensure compliance with existing and new reporting obligations, affected businesses must:

Identify which reporting obligations will apply in future
Establish effective routines for collecting necessary data
Conduct strategic assessments of ‘additional’ reporting regarding market or financial advantages
Develop a sound methodology for reporting

Expert Support from Wikborg Rein

At Wikborg Rein, we help our clients identify the reporting requirements that apply to their business and establish good systems for data collection, reporting, and follow-up. With our expertise in sustainability law, we assist companies in navigating the complex regulatory landscape and ensuring compliance with emerging reporting obligations.