At the end of 2019, the European Commission presented the European Green Deal (EGD) as a roadmap for achieving the sustainability of the EU economy. The Green Deal includes making Europe the first climate-neutral continent by 2050, protecting biodiversity, establishing a circular economy and eliminating pollution, increasing industrial competitiveness and ensuring a just transition for affected regions and workers. The purpose of the EEZ is to ensure sustainable and circular economic development with less pollution and lower greenhouse gas emissions, better health, increased quality of life and new jobs.

Norway’s goal is to become a green industrial and energy giant based on natural resources, knowledge, industry, expertise and historical advantages. This will accelerate the transition, create jobs across the country, strengthen investments in the mainland, increase exports and reduce greenhouse gas emissions. The government of Norway is aiming for a radical restructuring of the industry in a very short time. The country’s population is aging and the proportion of people of working age is declining, which means that in order to maintain a good standard of living and finance the welfare state in the future, productivity and value creation in the economy must increase. At the same time, skills and labor shortages are growing. These challenges are at the heart of green industrial progress. Achieving the climate goals requires a complete restructuring of the economy and will involve authorities, businesses and households.

The Common Business Framework is critical to the success of the Green Industry pledge. How effectively Norwegian industry will be able to transition to a low-emission society depends largely on its access to key factors of production, such as renewable energy, other raw materials, capital and labor. In addition, it is essential to have access to suitable industrial space, infrastructure, knowledge, technology and markets.

Norway is a significant and stable energy supplier, with almost emission-free energy production. However, a wide-ranging energy commission has been established in the country, whose tasks include assessing future energy needs, analyzing opportunities for new energy production, evaluating the experience with the Energy Act over the past 30 years, and providing a basis for long-term decisions in the field of Norway’s energy policy.

The green transition leads to a significant need for knowledge in all industries, in addition to the need for skilled labor, as it will require major efforts to research and develop new technologies and further develop new areas of application of existing technology. This requires access to people with a high level of training in technical subjects who can work with research and development, both in research institutes and in enterprises. Look more!

The circular economy is a way of creating value and prosperity through a more complete use of resources. Circular sustainable business models where resources are conserved are created by facilitating repair and reuse, by reusing and creating new materials from by-products and waste, and by reducing waste in production.

The Norwegian processing industry is today a world leader in the field of climate and environment, as a result of new environmental solutions and new process technologies being developed and put into use. For the Norwegian manufacturing industry, the circular economy means an opportunity for increased value creation, enhanced competitiveness and increased export earnings. This will help to secure jobs in Norway and also provide opportunities for technological development and investment in new production, which will eventually lead to increased employment.

The processing industry generates less than 4% of non-hazardous waste in Norway, but on the other hand forms almost 45% of all hazardous waste. In the coming years, the manufacturing industry must emphasize research and development within the framework of the circular economy, which can reduce the amount of hazardous waste and make better use of the resources in the most hazardous waste, both in its own company activities and in other industrial enterprises.

There is no clear definition of what can be defined as a “circular economy product”. However, the expert group for the Norwegian manufacturing industry (Norsk Industri) considers that the typical characteristics of a product are that it has a long life, can be easily recycled or repaired, is made from recycled material and has low greenhouse gas emissions through entire life cycle.

Norsk Industri’s main recommendations for a circular economy in Norway and the EU are in the following several directions:

• Increased demand for ecological and resource efficient products;
• Public procurement with stricter environmental requirements;
• Harmonization and simplification of EU regulations;
• Creating industry-oriented circular economy tools;
• Increased depreciation rates for circular projects;
• Increased knowledge and identification of material systems;
• Measures to reduce the amount of hazardous waste;
• Radical innovation (the development of technologies that represent a fundamental change from the existing practices, knowledge, principles and ideas of companies).

Plastic packaging accounts for a large proportion of plastic waste thrown into nature, both in Norway and globally. Therefore, there are great environmental and climate benefits to be gained from collecting and recycling plastic packaging. Plastic waste cannot be effectively converted into new, usable products without being sorted by type of plastic. In addition, additives in plastics can be a barrier to recycling and it is important to ensure that plastic recycling does not become a source of distribution of hazardous substances. There are different types of plastic – those made from fossil fuel-based raw materials and those made from biological raw materials (bio-based plastics). Another distinction can be made between plastics that are biodegradable and those that are not. There is much to be gained from designing products that reduce resource consumption and are designed to be recycled from the ground up. Therefore, sustainable product design is a top priority, especially for multi-material products containing plastic.

The amount of plastic waste is expected to increase significantly, both in Norway and globally. It is estimated that by 2040, the global amount of plastic waste will double, the amount of waste in the ocean will triple, and the amount of plastic in the sea will almost quadruple if business continues as usual. Throughout the life cycle of plastics, there are activities that lead to greenhouse gas emissions. It is estimated that the plastic sector’s share of the carbon budget could rise from 1% in 2014 to 15% in 2050 if production increases as expected in the coming decades.

More than 3 million tonnes of plastic are used in Norway, of which durable plastic products such as construction materials and vehicles make up a large part. The total amount of plastic waste produced annually in Norway is approximately 0.5 million tonnes and this is likely to increase in the future. In 2019, there were 240,000 tonnes of plastic packaging on the market in Norway – double the amount from 2009. A 2018 report estimated that Norwegians annually use around 525 million straws, 455 million pieces of disposable cutlery, 600 million wet wipes and over 105 million drinking glasses. Some of these products, which have been used only once, end up in nature or on the street, instead of being put into the waste management system. Reuse solutions lead to less waste disposal and reduce the demand for raw material extraction.

Norway’s ambition is to be a leading maritime nation. This includes efforts to prevent and reduce marine plastic litter and plastic pollution. Since 2014, Norway has taken a leading role in international efforts, under the auspices of the United Nations Environment Programme, to promote the need for a new global agreement to combat marine plastic litter and microplastics. In addition, Norway has started bilateral cooperation with countries including Russia, China, India and South Africa to develop knowledge and support a comprehensive approach to plastics management in these countries.

From 3 July 2021, certain single-use plastic products are banned in Norway, incl. plastic straws and disposable plastic utensils. this ban could lead to a reduction of 1.9 billion single-use items being used each year – an annual reduction of 3,600 tonnes. Labeling requirements have also been introduced stating that sanitary napkins, tampons, filter tobacco products and wet wipes contain plastic and therefore should not be flushed down the toilet or disposed of in nature. Look more!

Food is fundamental to our lives and is often associated with positive experiences such as sharing, family, comfort and sustenance – in other words, our relationship with food is intimate and personal. At the same time, the global food industry is the largest industry in the world, and food production, retailing, consumption patterns and food waste are all parts of a very large and complex multinational system.

In the post-World War II quest for food security, and later convenience, supply chains became longer and as a result food traveled longer distances to consumers. As countries become richer, the choice and year-round availability of fresh food increases, people’s diets change. As a result, the food system is unsustainable, has a serious negative impact on the environment and contributes to the climate crisis.

The COVID-19 crisis has led to a rapid growth in food retailers offering home delivery as a direct result of social distancing measures. There was a growing aversion to non-packaged foods due to fear of contamination, which led to an increased use of plastics and packaging materials. Furthermore, as borders in Europe closed, reduced labor mobility had severe consequences for food production, as seasonal workers are key to food production. The COVID-19 crisis has shown that providing food “from farm to fork” cannot be taken for granted and has revealed the interconnectedness of actors and activities throughout the food system.

The Norwegian food and beverage industry has been growing steadily since the end of the 19th century and is currently the second largest industrial sector in Norway. Companies in this sector mainly process Norwegian agricultural and fishery products. The agriculture-based food processing industry is mainly aimed at the domestic market. The fishing industry, on the other hand, exports more than 90 percent of its production.

Norwegian food companies are actively engaged in sustainability issues. In the developed strategy for turning Norway into a “Food Nation”, the following priority areas are set:

• Pursuing a comprehensive nutrition and health policy that emphasizes sustainability, good health and safe, healthy and high-quality food.
• Continued monitoring of the Norwegian diet.
• Update and renewal of the national strategy against antibiotic resistance, applicable from 2021.
• Strengthening collaboration with industry for a healthier diet.
• A good life in a safe society. Continued collaboration with industry to reduce food waste through the 2017 Industry Agreement.
• Follow-up of the National Action Plan for Better Nutrition 2017-2023.
• Further developing the focus on the enjoyment of food for adults through Golden Meal Moments.
• Introducing the national strategy for good diet and nutrition for older people in nursing homes and home care services.

With the “Food Nation Norway” strategy, the government wishes in particular to emphasize the links between industrial and health policy in the field of food. Existing collaborations on healthy eating, food safety and food waste are examples of how cross-sectoral work is being done in nutrition, health and the environment.

The pressing need for change places high hopes on innovation as a means of developing new technologies, new business models or new ways of organizing that can help mitigate resource constraints and prevent further environmental degradation. With an aging population and a more diverse population at the same time, new needs for personalized food and beverages will require new solutions. Similarly, the need to minimize food waste may require new and comprehensive solutions, both in industry and in the public sector. Public procurement, for example, can contribute to more innovation and diversity in products and services. Look more!

Anthropogenic climate change will have serious and irreversible impacts on nature and society worldwide. The world is experiencing increasingly frequent and more intense extreme climate events. Temperatures are rising, snow and ice are melting, sea levels are rising, seawater is becoming more acidic, and forest fires are becoming more frequent. Vulnerable species and ecosystems disappear. Climate change will intensify in the coming years.

The changes are already happening and the impacts are becoming evident in Norway as well. It is vital that society prepares for change and adapts to a changing climate. Combating climate change requires vigorous and concerted global efforts to reduce greenhouse gas emissions.

Preventing catastrophic environmental degradation is critical to safeguarding the well-being of future generations.

The adoption of the Paris Agreement was a turning point in international climate cooperation. Together with the United Nations Framework Convention on Climate Change (UNFCCC), the agreement provides a solid framework for global climate action going forward. The goal of the Paris Agreement is to keep the increase in the average global temperature well below 2°C above pre-industrial levels and to work towards limiting the temperature increase to 1.5°C. In December 2020, the EU strengthened its target under the Paris Agreement. The new target is to reduce greenhouse gas emissions by at least 55% by 2030, down from the previous target of 40%.

The Norwegian Action Plan aims to reduce greenhouse gas emissions by 50-55% by 2030 and by 90-95% by 2050. In this regard, Norway will have to go through a major transformation process that will involves reducing emissions but without impeding development. In 2020, around NOK 4.5 billion was allocated to a green restructuring package, including funding for research, innovation and green restructuring in the business sector and at local government level, and with the 2021 budget, funding has been increased by about NOK 11 billion.

Green growth is possible, but it requires policies that allow the business sector to develop and deploy new technologies to replace yesterday’s fossil fuel solutions. Products and services will need to have a much smaller climate footprint in the future.

Norway has a good starting point. Electricity generation is now largely renewable (2019 renewable electricity is 98% of generation). Hydrogen technology is another area where Norway has significant potential. Norway also has significant potential for bioenergy production from forest and agricultural resources. Also, various regulatory measures have been adopted, such as a ban on the use of mineral oil for heating buildings and obligations for biofuel quotas for both road transport and aviation. Emissions from public transport must be reduced or eliminated – the requirement is that all new local buses be emission-free from 2025. The government also has ambitions to shift freight transport from road to rail and sea.

Cross-sectoral instruments such as taxation of greenhouse gas emissions and emissions trading are the main instruments of Norwegian climate policy. These instruments put a price on emissions and provide incentives to every household and company to reduce emissions and to develop and implement climate-friendly solutions. For example, vehicle taxes are designed to make it profitable to choose zero-emission vehicles, which is why Norway is leading the way in the use of electric vehicles. Look more!

The ESG Report (Sustainability Report) is information about an organization published by it on its environmental, social and governance (ESG) impacts. This allows the company to be more transparent about the risks and opportunities it faces.

Many pieces of legislation are currently in preparation or have come into force that require companies to disclose non-financial information:

• Regulation (EU) 2020/852 of the EP and of the Council of 18.06.2020 on the creation of a framework to facilitate sustainable investments (EU Taxonomy Regulation);
• Corporate Sustainability Reporting Directive (CSRD)
• Corporate Sustainability Due Diligence Directive (CSDD)
• European Commission legislative proposals on sustainable products (draft)

The growing importance of sustainability reports is supported by the fact that investors and other stakeholders are calling on companies to disclose more about their sustainability, environmental, social and governance strategies. A sustainability report is an effective tool that allows companies to answer in one document a wide variety of questions that stakeholders may raise.

Increasingly, investors and lenders will use the transparency provided by an ESG report to assess the risks to a company and determine its possible future financial performance. investors avoid companies that do not have ESG reports – reduced transparency is a major concern. Consumers are also demanding responsible ‘brands’. According to a European study, consumers, especially Generation Z, are more likely to support brands with an effective ESG strategy. 62% of Gen Z would prefer to buy from a sustainable brand, and 73% of them are willing to spend up to 10% more for a more sustainable product/service. ESG is also important when it comes to employees. Studies have shown that 76% of those born after 2000 consider the importance of employer sustainability before making their career choice. In this light, ESG reporting will increase an organization’s chances of attracting new talent.

However, creating a sustainability report can be challenging as it must meet the requirements of the reporting methodology and have the right balance of information from individual programmes. Additionally, companies must determine how to communicate relevant information and what ESG information and indicators to report.

International Organization for Standardization ISO issues standards, according to the GRI (Global Reporting Initiative), by which companies report non-financial information on impacts on climate change, the environment, human rights and corporate governance. These standards are optional and non-binding, but the proposed Corporate Sustainability Reporting Directive (CSRD) and the upcoming mandatory European Sustainability Reporting Standards (ESRS) are based on the GRI framework. In 25 European countries, ESG reporting is now mandatory for companies. Look more!