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WR ESG Alert: New rules on sustainability reporting in Norway, while simplification, postponement and evaluation are on the horizon

30.01.2025

In this month's ESG alert, we highlight the entry into force of the reporting requirements of the EU Corporate Sustainability Reporting Directive in Norway, and look into the Omnibus Simplification Package and the postponement of the Deforestation Regulation from the EU, as well as a recently published report evaluating the Norwegian Transparency Act.

Lesetid 3 minutter

Environment

CSRD reporting requirements entered into force 

On 1 November 2024, amendments in the Norwegian Accounting Act, which implement the CSRD requirements, entered into force in Norway. Lawyers at Wikborg Rein have been preparing a legal commentary offering an in-depth analysis of the new requirements. The legal commentary is published on Juridika

Competitiveness Compass for the EU

On 29 January 2025, the European Commission published a communication on EU competitiveness. It follows from the communication that several simplification packages will be launched (Omnibus).

Aiming to simplify reporting requirements, the Omnibus Simplification Package is expected to focus on the EU Taxonomy, the Corporate Sustainability Reporting Directive, and the Corporate Sustainability Due Diligence Directive. The reform could reshape several legal requirements, although details of the proposal, expected to be unveiled on February 26, remain scarce.

One-year postponement of EU Deforestation Regulation 

On 18 December 2024, the EU Council formally postponed the application of the Deforestation Regulation until 30 December 2025 for large companies and 30 June 2026 for small and micro enterprises. The Deforestation Regulation imposes documentation and due diligence requirements to ensure that relevant commodities and products are deforestation-free and lawfully produced. 

The Deforestation Regulation has been marked as EEA relevant, and the Norwegian Environment Agency has estimated that implementation will take place in the course of 2025.

Social 

Evaluation report regarding the effects of the Norwegian Transparency Act

On 29 January 2025, the Norwegian Ministry of Children and Families published a report evaluating the effects of the Norwegian Transparency Act from the perspective of companies. 

The report's conclusions are, amongst others, that:

  • While the Transparency Act has led to an increased focus and improvements in the enterprises' own operations and supply chains, many enterprises perceive its obligations as vague, and call for more guidance. 
  • Much of the enterprises' work so far has been focused on policy drafting, risk mapping, supplier questionnaires and reporting. Concrete measures, stakeholder dialogue and remediation have been given a lesser focus. 
  • Several enterprises point to the needs for harmonisation with new EU legislation on sustainability and responsible business conduct, including the Corporate Sustainability Due Diligence Directive (CS3D) and the Corporate Sustainability Reporting Directive (CSRD). 

Wikborg Rein's monthly ESG alerts will cover key developments on topics of relevance under the ESG umbrella. The WR ESG alerts intend to offer a focused perspective on environmental and social issues, emphasising material developments and their implications. However, this may not encompass all aspects of the broader ESG spectrum and will generally not cover governance-related updates. 

The WR ESG alerts primarily cover regulatory developments within Norway and the EU. We endeavour to keep you informed about the evolving landscape of ESG regulations, although it is essential to verify and cross-reference information, considering the dynamic nature of regulatory environments. Please note that the information shared in the WR ESG alerts is for informational purposes only and should not be construed as legal advice. 

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Forfattere
Profile image of Elise Johansen
Elise Johansen
Partner
Profile image of Kristin Nordland Brattli
Kristin Nordland Brattli
Partner
Profile image of Tonje Hagen Geiran
Tonje Hagen Geiran
Specialist Counsel
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Mads K. Haugse
Advokatfullmektig

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