Securities Act Committee is investigating Norwegian implementation of 2022 CSRD.
Committee originally supposed to deliver report by May 20, 2022 but when assignment given, ministry opened door for later delivery if dir not finally adopted in EU by then.
Directive was published in EU OJ in Dec. 2022, committee was given extended deadline of May 15, 2023 to deliver its report that will be sent for consultation later on.
Context
EU Member States must implement regulatory changes in CSRD by Jul. 5, 2024.
New reporting obligations will be introduced step by step, Ministry of Finance is aiming for the new rules to come into effect at the same time in Norway as in the EU.
Gradual introduction of reporting requirements from financial year 2024 large firms (of general interest, with average staff in financial year of over 500 full-time employees).
Enterprises of general interest are banks, credit, insurance and listed companies.
From financial year 2025 other large enterprises reporting kicks in; companies with balance sheet exceeding 2 of 3 threshold values: balance sheet total NOK 160 million.
Sales revenue of NOK 320 million; average staff financial year: 250 man-years.
From financial year 2026 SMEs listed companies i.e. those below limits for large firms.
Other Aspects
Ministry of Finance encourages companies meeting conditions for reporting obligations from financial year 2024 to familiarize themselves with the new reporting duties.
Effectiveness
Report due by May 15, 2023.
May 2023 Report Issued
On May 22, 2023, NOR GVT announced Securities Law Committee issued report on implementation of directive on companies' sustainability reporting in Norwegian law.
Better and more comparable sustainability reporting will be able to provide benefits both for those who invest and for companies that report.
Investors should be able to more easily identify Norwegian companies that are well equipped for transition to a more sustainable economy.
Reporting companies get better opportunity to highlight what they do on sustainability.
When reporting improves, this will also give ordinary people a better opportunity to hold companies accountable for their impact on the environment, people and society.
Securities Act Committee's report was sent for consultation, deadline is Sep. 4, 2023.
Aim is to present proposal to Storting in time for new rules to be introduced in NOR at same time as in EU, so regs apply to largest listed companies from financial year 2024.
Mar. 2024 Implementation Bill
On Mar. 15, 2024, NOR GVT issued Legislative Prop. 57 L (2023-2024)-Amendments to the Accounting Act etc. (Sustainability Reporting), in order to implement the CSRD Dir.
The bill is essentially a follow-up to a proposal from the Securities Law Committee in NOU 2023:15 Sustainability Reporting; proposed changes to corporate size categories.
Bill is available in pdf and word format; procedure can be followed on bill's webpage.
NOR GVT's proposal differs from the Committee's proposal on the following points.
NOR GVT proposed that large state enterprises be also covered by the obligation to prepare sustainability reporting; committee said this should apply to dir's companies.
NOR GVT didn't propose legal regulations so that the so-called independent providers of attestation services (IASPs) should be able to attest to sustainability reporting.
There is a need for further assessments to ensure that any Norwegian rules on independent providers of attestation services comply with directive's requirements.
Proposal for an authority to deal with independent providers of attestation services.
Transitional rules involving a step-by-step introduction of the requirements for sustainability reporting in line with the dir and Securities Law Committee's proposal.
From financial year 2024 (reporting in 2025), the new requirements shall apply to undertakings of general interest i.e. banks, insurance and listed undertakings.
Which have over 500 employees, and can be considered as being large undertakings.
From the financial year 2025, the rules will apply to all large enterprises; from the financial year 2026, the rules will apply to small and medium-sized listed companies.
But these will have simpler reporting requirements and simplified reporting standards.
After the Committee presented its report, changes were adopted in Dec. 2023 to the categorization of companies and groups in the EU's accounting dir due to inflation.
With the changes, fewer enterprises will be considered large enterprises and covered by the rules on sustainability reporting than the Committee laid down in NOU 2023:15.
NOR GVT proposed to increase the small companies thresholds for total assets, sales revenue as much as the dir allows; from NOK 35 and 70 mn to NOK 84 and 168 mn.
Applies from date to be appointed, provisions can be put into effect at different times.
Jun. 17, 2024 NOR PRL Approves Accounting Act Proposals
On Jun. 17, 2024, NOR GVT stated that NOR PRL adopted a proposal on Jun. 11. from Ministry of Finance for changes to Accounting Act as per Bill Prop. 57 L (2023–2024).
The changes involve, among other things, simplifications for around 3,000 smaller Norwegian companies, in relation to sustainability reporting requirements in CSRD.
Also, implements directive rules on capacity reporting from large and listed companies.
The bill involves changes to the definition of small businesses in the Accounting Act.
The legislative amendments shall apply from the time the King of Norway decides.
The legislative amendments will not be brought into force in time for the changes in the definition of small enterprises to be made applicable for the financial year 2023.
Jun. 21, 2024 Act Published
On Jun. 21, 2024, NOR GVT announced the Act relating to amendments to the Accounting Act, etc. (sustainability reporting) (LOV-2024-06-21-42).
Amendments are made to Act No. 56 of Jul. 17, 1998 on annual accounts, etc.
Applies from date to be appointed, provisions can be put into effect at different times.
In Jul. 2024, NORFSA reported on sustainability and financial reporting, see #217863.
Oct. 2024 Act 42 and Transitional Rules
On Oct. 11, 2024, NOR GVT announced that the amendments to the Accounting act and several other acts adopted in Act No. 42 of Jun. 21, 2024 on amendments to the Accounting act, etc. (sustainability reporting) will enter into force on Nov. 1, 2024.
Announced under FOR-2024-10-11-2454 re Partial entry into force of Act No. 42 of Jun. 21, 2024 on amendments to the Accounting Act, etc. (sustainability reporting).
Legislative amendments implement new EEA rules in Corporate sustainability reporting directive (CSRD) and changes to size definitions for firms in the Accounting directive.
Ministry of Finance also laid down transitional rules to Act 42 of Jun. 21, 2024 on amendments to accounting act, etc. (sustainability reporting) (FOR-2024-10-11-2477).
Accounting act changes apply from 2024 FY, but there will be a step-by-step intro of requirements for sustainability reporting in Accounting act; Securities trading act.
Also laid down a transitional rule stating that requirements in s2-7 of Accounting act on e-reporting formats only apply to financial years beginning on or after Jan. 1, 2025.
Also circulated for consultation proposals from NORFSA on amendments to the auditor regulations, regulations to Accounting act and other regulations, see #225322.
Many of the proposals are adaptations to amendments to Accounting Act that will enter into force on Nov. 1, 2024; Ministry aims to adopt regulatory amendments shortly.
On Oct. 11, 2024, NOR FA critical of CSRD implementation in Norway, see #229675.
Regulators
NOR GVT; NOR PRL
Entity Types
Auditor; CNSM; Corp
Reference
OG 2024-1095, FOR-2024-10-11-2454, OG 2024-1096, FOR-2024-10-11-2477, PR, 10/11/2024; OG 2024-0575, LAW-2024-06-21-42, 6/21/2024; PR, 6/17/2024; Res 80, PR, 6/5/2024; Bill 57 L (2023-2024), PR, 3/15/2024; Rp NOU 2023:15; CP, PR 32/2023, 5/22/2023; PR 3/28/2023; ESG; Citation: CSRD Dir 2022/2464; LOV-2024-06-21-42; FOR-2024-10-11-2454; FOR-2024-10-11-2477;
