Assessing Nature-Related Dependencies, Impacts, Risks and Opportunities of Norwegian State-Owned Enterprises

Client: Norwegian Ministry of Industry, Commerce and Fisheries (MICF)

Location: Norway, Worldwide

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Objective: The Norwegian State holds direct ownership interests in approximately 70 enterprises and has strengthened its expectations that state-owned enterprises (SOEs) identify, manage and report on nature-related risks and opportunities. MICF commissioned Sustain Value and Cedra to improve its understanding of nature-related exposure and management across its ownership portfolio and to identify current best practice. The study covered 17 SOEs across 12 sectors, ranging from large multinational companies such as Equinor, Hydro, Statkraft and Yara to smaller companies operating primarily in Norway, and financial institutions such as DNB and Nysnø.

Our role: Sustain Value led the methodological assessment and technical aspects of the study, working in close collaboration with Cedra, a Norwegian audit, law and advisory firm. The work combined three main components. First, we conducted a high-level screening of each company's potentially material nature-related dependencies, impacts, risks and opportunities (DIROs), drawing on the TNFD LEAP approach and company-specific evidence. Second, we assessed the maturity of each company's approach to managing nature across seven dimensions. Third, we undertook a comprehensive Best Practice Review, identifying leading corporate actions, standards, guidance and tools, supported by 9 case studies demonstrating advanced practice across different sectors.   

Outcome: The study provides MICF with its first consistent portfolio-wide view of how 17 of its investments are exposed to nature-related issues, how mature their management approaches are, and where further action should be prioritised. It found that many companies have made significant progress in understanding nature-related issues, but that a gap remains between assessment and action, particularly around ambition, target-setting, implementation and disclosure. The report provides practical recommendations for MICF's ongoing owner dialogue.

Phase 2 now involves undertaking deeper dive assessments for several of the companies and finance institutions investigating issues such as supply chain analysis, nature positive metrics, investor due diligence guidance and how to better understand actual site-level biodiversity risks.