Norges Bank Investment Management (NBIM), which manages Norway’s sovereign wealth fund, has asked the European Commission to let companies meet both ESRS and ISSB standards, as well as comply with CSRD and ESG disclosure requirements, through a single report. They argue that greater alignment would lessen reporting burdens and improve comparability for investors.

This recommendation was part of the European Commission’s consultation on revised European Sustainability Reporting Standards (ESRS). NBIM manages Norway’s approximately $2 trillion oil fund and holds investments worth around €232 billion in more than 1,000 European companies. They stated that a unified reporting method would benefit both businesses and global capital markets.

Push for Simplified Reporting

NBIM pointed out that the current reporting landscape could lead to duplicate efforts for companies that must follow both European and international sustainability reporting frameworks. The investor claimed that better alignment between ESRS and the International Sustainability Standards Board (ISSB) framework would enable companies to meet both requirements through one disclosure process.

Carine Smith Ihenacho, Chief Governance and Compliance Officer at NBIM, mentioned that the revised draft ESRS showed progress but needed more work for real simplification. According to NBIM, aligning European standards more closely with the ISSB framework would be beneficial for companies, investors, and European capital markets, as the ISSB framework has become a widely accepted global reporting standard.

The proposal arrives as the European Union works to simplify sustainability reporting obligations through its Omnibus I package.

EU Revises Sustainability Framework

Last month, the European Commission published a revised draft ESRS as part of broader reforms to cut administrative burdens on businesses. These changes followed amendments to the Corporate Sustainability Reporting Directive (CSRD), which significantly reduced the number of companies that must report sustainably.

Under the new criteria, companies earning less than €450 million a year and employing fewer than 1,000 workers are no longer included in CSRD requirements. Previously, the threshold was set at 250 employees.

EU lawmakers estimate that the new eligibility rules have lowered the number of companies needing to report by about 90%.

The latest ESRS revision was formed using recommendations from the European Financial Reporting Advisory Group (EFRAG). Proposed changes include a significant reduction in the number of required reporting datapoints and the removal of voluntary disclosure requirements. Overall, mandatory datapoints have dropped by more than 70% compared to the original framework.

Importance of Global Comparability

While supporting efforts to simplify processes, NBIM stressed that simplification should not weaken international consistency in sustainability reporting.

The investor highlighted that around 42 jurisdictions have adopted ISSB standards, representing about 60% of global gross domestic product. The ISSB’s reporting framework, which started in June 2023, includes IFRS S1, which covers sustainability-related risks and opportunities, and IFRS S2, which focuses on climate-related disclosures.

NBIM argued that aligning more closely with ISSB standards would help investors compare companies across various markets and jurisdictions more easily. They believe Europe can maintain its double materiality approach while also incorporating internationally comparable disclosures focused on investor needs.

Double materiality requires companies to report not only on how environmental and social issues affect their performance but also on their impact on society and the environment.

Proposed Technical Changes

To support a single-report model, NBIM suggested two specific changes to the revised ESRS framework.

The first proposal is to introduce a clear information principle. This means relevant information for investors must be easily identifiable within sustainability reports and not buried among disclosures aimed at other stakeholders.

The second recommendation is to give companies more flexibility in presenting sustainability information. NBIM believes this would let organizations structure their reports to meet both ESRS and ISSB requirements at the same time.

The investor also warned against making changes that could weaken the connection between the two reporting systems. In particular, NBIM expressed concern about proposals that might allow companies to withhold information related to expected financial impacts from climate-related risks.

Concerns Over Disclosure Delays

NBIM further questioned proposals that would let companies delay quantitative disclosures about non-climate sustainability impacts until the 2030 financial year.

They argued that such delays would create inconsistencies with ISSB standards, which require disclosure of financially important sustainability information starting in the first year of reporting.

The fund manager emphasized the need for consistency across reporting frameworks to provide reliable and comparable sustainability data for investors.

Broader Implications for Businesses and Investors

Beyond climate reporting, NBIM also asked the European Commission to include industry-specific guidance, such as Sustainability Accounting Standards Board (SASB) standards, in ESRS double materiality assessments.

The organization additionally urged closer collaboration between the European Commission and ISSB on future nature-related reporting standards. The ISSB is developing guidance on nature-related disclosures based on the Taskforce on Nature-related Financial Disclosures (TNFD) framework, with a draft expected ahead of COP17 in October 2026.

As the EU wraps up revisions to its sustainability reporting system, NBIM said the goal should be to allow companies to report once while meeting both European and international requirements. The fund manager insisted that stronger alignment between ESRS and ISSB standards would help cut compliance costs, enhance transparency, and support global comparability for investors.