Norway’s Finance Watchdog Urges Industry to Step Up Climate Work

Norway’s banks need to step up their work on climate risk and sustainability if they expect to meet regulations that are due to be introduced soon, according to the Financial Supervisory Authority.

“Although many enterprises have made strides in this field, the general impression is that this work must be intensified in order to comply with new EU requirements that are expected to be implemented in Norwegian law shortly,” the FSA said in a report on Wednesday.

Norway isn’t part of the European Union but follows most of the bloc’s rules as a member of the European Economic Area.

Banks -- and asset management units -- will soon be required to increase disclosures as part of European efforts to steer investment toward projects that reduce greenhouse gas emissions.

Read about Storebrand’s push for more ESG visibility for loan books

While banks have started to include sustainability and climate risk in their governing documents, they have not come very far in assessing climate risk in their loan portfolios, the financial watchdog said.

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