STATE OF SUSTAINABILITY IN NORWAY 2022
We are delighted to publish our fifth annual State of Sustainability Norway-survey in close collaboration with USN and NHH - with design help from Uppercase. The ambition with this survey is to get a detailed overview of how leading Norwegian companies work strategically and practically with sustainable business.
State of Sustainability Norway extracts unique insights from the private sector in a very advanced country when it comes to sustainable business practices.
We are delighted to publish our fifth annual State of Sustainability Norway-survey in close collaboration with USN and NHH - with design help from Uppercase. The ambition with this survey is to get a detailed overview of how leading Norwegian companies work strategically and practically with sustainable business.
State of Sustainability Norway extracts unique insights from the private sector in a very advanced country when it comes to sustainable business practices.
Has ESG been reduced to a compliance worksheet?
In this year`s survey almost half of the companies say that work with new regulations and reporting requirements is prioritized over sustainable value creation.
New legal requirements, regulations and investor pressure mean that the focus on ESG has increased sharply in Norwegian business in recent years. Many managers and companies have realized that the sustainability train has become the only viable path forward. However, amid this surge towards sustainability, confusion and a deficit of competence in sustainable business operations persist. The 2022 findings underscore a notable uptick in influence and pressure exerted by several stakeholders in driving ESG considerations to the forefront of corporate decision-making in 2022. |
“Now is the time to stop, look around and take into account the potentially harmful consequences of increased requirements and regulations, and let companies focus on what is, after all, most important:
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The heat is on!
The pressure is increasing, in general and from almost all stakeholders.
The pressure is increasing, in general and from almost all stakeholders.
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We see a substantial increase in pressure from several stakeholders.
This table shows the changes in external stakeholder pressure from 2020 to 2022 (high and very high extent of pressure) 79% of the respondents has perceived more or much more pressure towards sustainability over the last year, up from 69% in 2020 |
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Reporting is taking focus away from sustainable value creation (!)
Almost 5 out of 10 companies say the current focus on reporting and regulation is taking priority over sustainable value creation.
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Many of the companies in the survey say that advisors and consultants on sustainability almost exclusively focus on new legal requirements and reporting requirements.
This comes at the expense of work with strategy, transformation and innovation with sustainability at its core. |
“Many talk about the fact that we must start by measuring before we can make progress. But what if we are simply measuring the wrong things, and have strayed from what is actually important?”
Andreas Friis, Founder & Executive Chair, S-HUB Norway
Where is the strategic focus?
Strategic focus on corporate sustainability has increased sharply, except for the CxO team as a whole.
74% of management teams have a strong or very strong commitment to sustainability, down from 81% in 2021.
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“It is surprising to see that there is a higher representation of marketing and sales in sustainability than in technology. There seems to exist a substantial attempt to use sustainability as a tool for reputation management.”
Solgunn Slåtto, Sustainability Consultant Sund & Bælt Holding.
Solgunn Slåtto, Sustainability Consultant Sund & Bælt Holding.
Do we lack competence?
We find that competence is getting a lot better, but is in general not very high across roles and departments.
We are not even close to where we should be yet! Companies are more polarized as to whether they have enough competent employees or not.
We are not even close to where we should be yet! Companies are more polarized as to whether they have enough competent employees or not.
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Reality check?
Very few connect sustainability to financial performance, even fewer to ROI (Return on Investment). Investments in sustainability will be high in the next 3-5 years, but the survey shows a big drop since last year, especially internally & in innovation
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Responses from this question highlights a trend we did not wish for. Product and service innovation for sustainability is clearly not up to speed for the vast majority of the participating companies. We see a 12 % decrease from last year in the “More than 50%”-group. 14% increase in the “under 25%-group”. |
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“Lots of potential for improvement with less than 50% of sales
coming from sustainable products and services!
Wow! That number was low!”
Paula Capodistrias, Chairman of the Ethics Committee of FEBAs Board of Directors
The next chapter?
The EU's upcoming regulations for sustainability reporting (ESRS) will be introduced from the financial year 2024, with reporting for 2025.
Five times as many companies as before will be affected by the regulations.
We must remember that for many companies sustainability, reporting and regulations will be both new and unknown.
Not least for small and medium-sized companies, of which are clearly the majority in EU, there is a danger that the limited competence and resources they have in the field of sustainability will be applied in statutory reporting.
There will be neither sustainability nor business generated from that!
Five times as many companies as before will be affected by the regulations.
We must remember that for many companies sustainability, reporting and regulations will be both new and unknown.
Not least for small and medium-sized companies, of which are clearly the majority in EU, there is a danger that the limited competence and resources they have in the field of sustainability will be applied in statutory reporting.
There will be neither sustainability nor business generated from that!
Interested in becoming a member of S-HUB?
Find out more about joining S-HUB and connecting through our activities with a community of organisations engaged in sustainability transformation:
Find out more about joining S-HUB and connecting through our activities with a community of organisations engaged in sustainability transformation:
ABOUT THIS SURVEY
The State of Sustainability is the most thorough study of its kind in Norway. It dives into the sustainability efforts of Norwegian companies.
The purpose is to get more understanding on how Norwegian companies work practically and strategically with sustainability, and how sustainability has evolved over time. Specific focuses this year are around competence and implementation gaps, the board and the CFO function. What are the missed opportunities?
Hundreds of respondents across the Norwegian business landscape, including some of Norway’s largest companies, has provided the details of their organization and state their perspectives on key sustainability questions. The qualitative answers we received have provided unique insights into the State of Sustainability within specific sectors yearly during these 5 consecutive years.
The purpose is to get more understanding on how Norwegian companies work practically and strategically with sustainability, and how sustainability has evolved over time. Specific focuses this year are around competence and implementation gaps, the board and the CFO function. What are the missed opportunities?
Hundreds of respondents across the Norwegian business landscape, including some of Norway’s largest companies, has provided the details of their organization and state their perspectives on key sustainability questions. The qualitative answers we received have provided unique insights into the State of Sustainability within specific sectors yearly during these 5 consecutive years.