The State’s expectations of the companies

Article | Last updated: 03/02/2023 | Ministry of Trade, Industry and Fisheries

By defining clear expectations of the companies, the State wishes to be an active owner to contribute to attaining the State’s goal as an owner in a sustainable manner. Clear communication of the expectations also contributes to transparency regarding what is important to the State as an owner, and what the State will follow-up when exercising its ownership.

Topic	The State expects that:
Ambitions, goals and strategies	• The company defines and implements ambitions, clear goals and strategies. • The company includes the work with the United Nations Sustainable Development Goals in the company's strategies and actively works to follow this up in day-to-day operations. • The company’s risk assessment is an integrated part of the company’s strategies. • The company defines clear key performance indicators and measures the company's goal attainment and implementation of the strategies.
Responsible business conduct	• The company leads the field in the work on responsible business conduct. • The company conducts due diligence based on recognised methods.
Human rights and decent working conditions	• The company respects human rights and workers’ rights and is a leader in promoting decent working conditions in the company's own activities and in the supply chain. • The company encourages its own employees to organise themselves and promotes the right to free unionisation in the supply chain.
Climate	• The company identifies and manages risks and opportunities relating to climate and integrates these into the company’s strategies. • The company sets targets and implements measures to reduce greenhouse gas emissions in both the short and long term in line with the Paris Agreement, and reports on goal attainment. The targets shall be science-based when available. • The company reports on direct and indirect greenhouse gas emissions and climate risk, and uses recognised standards for reporting greenhouse gas emissions and climate risk.
Biodiversity and ecosystems	• The company identifies and manages risks and opportunities relating to nature and integrates these into the company’s strategies. • The company sets goals and implements measures to reduce its own negative impact and in-crease its positive impact on biodiversity and ecosystems, and reports on goal attainment. • The company uses recognised standards for reporting on natural hazards and impact on biodiversity and ecosystems.
Tax and prevention of financial crime	• The company has an appropriate, well-considered and justified tax policy and is transparent about where financial value is created and where tax is paid. • The company works systematically to prevent financial crime such as corruption and money laundering in its own activities and in the supply chain.
Capital structure and dividends	• The company has a capital structure adapted to the company's goals, strategies and risks and normally in line with other well-run companies in the same industry. The company will provide grounds for any significant deviations from this. • The listed companies communicate what they deem to be an appropriate capital structure and dividend level to the market. The non-listed companies communicate their assessments of the capital structure and dividend level to their owner(s).
Organisation and culture	• The company’s organisation is efficient and promotes attainment of the company’s goals and supports the company’s strategies. • The company’s culture is established, managed and developed in such a way that it promotes attainment of the company’s goals and supports the company’s strategies.
Employees and diversity	• The company has clear goals and measures for promoting and triggering the value of increased diversity, equality and inclusion in all parts of the organisation. • The company works systematically with the development and recruitment of employees in line with the company's goals and strategies. • The company uses professional and vocational training and apprenticeships when this is relevant to the company's access to the right expertise in the short and long term.
Salary and remuneration	• Remuneration and other incentives used by the company promote attainment of the company and owner’s goals. • The remuneration of senior executives is competitive, but not market-leading, and is set with due regard to the principle of moderation. • The primary element of the remuneration scheme for senior executives is fixed salary. • Remuneration of senior executives is not unreasonable, and does not have adverse effects on the company nor undermines its reputation. • The company is transparent about the structure, level and development of remuneration of senior executives, including that the remuneration schemes are clearly understandable to owners, senior executives and other stakeholders. • Differences in the remuneration of senior executives and other employees are taken into consideration when assessing moderation, and the company should provide specific justification for salary adjustments for senior executives that are higher than the average salary adjustments for the company's other employees. This assessment shall also take into account the wage growth (in terms of Norwegian kroner) for other employees. • The company complies with the State's Guidelines for the Remuneration of Senior Executives in Companies with State Ownership.
Risk management	• The company has effective strategic and operational risk management and good internal control that are integrated into the company's strategy and decision-making processes.
Company management	• The company complies with the Norwegian Code of Practice for Corporate Governance where relevant, adapted to the company's operations. • The board follows best practice for board work, adapted to the company's operations.
Transparency and reporting	• The company leads the field in its work on transparency and reporting and makes use of recognised reporting standards. • The company promotes a culture of transparency and is transparent about and reports on all matters of material importance in such a manner that the information provides owners and the general public with a true and fair depiction of the company’s activities.