ANNUAL REPORT
2025
Photo: Carsten Dybevig
Our core values:
openness, honesty and cooperation
The Norske Skog of tomorrow is a
team effort and can only be realised
through external and internal
cooperation
.
Our business is by definition circular as it’s
based on renewable resources, aiming to
replace fossil alternatives. We increasingly
use recycled material. We are
honest
about
our processes, and strive to make all aspects
of our business sustainable.
This is something we realise through
innovation,
openness
to new
opportunities, competence and hard work.
It doesn’t come by itself. It’s up to us.
We provide
value
in many meanings
of the word: for society in general, for local
communities, for customers, for employees,
for shareholders.
Design
: BK.no/[email protected],
Print:
BK.no
/
Paper:
Artic Volum white
Editor:
Carsten Dybevig
Cover photo:
All images are Norske Skog’s property and should not be used for other purposes
without the consent of the communication department of Norske Skog
About Norske Skog
5
Norske Skog - The big picture
5
Key figures
6
About Norske Skog operations
7
Our properties
8
The history of Norske Skog
10
A glimpse of 2025
12
CEO’s comments
16
Reinventing Norske Skog
18
Experiences from the project and initial containerboard commercial phase
20
Board of directors
24
Corporate management
25
Share information
26
Report of the board of directors
31
Sustainability statement
37
General disclosures (ESRS)
38
1
Environmental information
55
Climate change (ESRS E1)
56
Pollution (ESRS E2)
72
Water and marine resources (ESRS E3)
78
Biodiversity and ecosystems (ESRS E4)
84
Resource and circular economy (ESRS E5)
90
2
Social information
97
Own workforce (ESRS S1)
98
3
Governance information
109
Business conduct (ESRS G1)
110
4
Appendix
113
Content index of ESRS disclosure requirements
114
The UN Sustainable Development Goals are an integral part of our strategy
120
Appendix - list
122
Board of directors statement on corporate governance
123
Signatures from the board of directors
129
Consolidated financial statements
131
Notes to the consolidated financial statements
136
Financial statements Norske Skog ASA
177
Notes to the financial statements
181
Statement from the board of directors and the CEO
187
Independent Sustainability Auditor’s Limited Assurance Report
188
Independent Auditor’s report
192
Alternative performance measures
197
I like to be with the people who actually do the job
198
Contents
Norske Skog Golbey, paper warehouse
Photo: Carsten Dybevig
99%
certified wood fibres
(2024: 98%)
-76%
reduction in Scope 1 and 2
GHG emissions
between 2015 and 2025
(2024: -81%)
354
NOK million Profit
before income taxes
(2024: -566)
1 674
employees
(2024: 2 101)
5 819
NOK million in equity
~40% equity ratio
1 093 000
tonnes
Production of publication paper
264 000
tonnes
Production of containerboard
10 482
NOK million
total operating income
(2024: 10 173)
769
NOK million EBITDA
(2024: 736)
Skogn, Norway
Saugbrugs, Norway
Bruck, Austria
Golbey, France
Business units
in 3 countries
4
Annual report 2025
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ABOUT NORSKE SKOG
Key figures
RESTATED
NOK MILLION (UNLESS OTHERWISE STATED)
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
INCOME STATEMENT
Total operating income
11 852
11 527
12 642
12 954
9 612
10 315
15 214
11 557
10 173
10 482
EBITDA*
1 081
701
1 032
1 938
736
662
3 105
2 062
736
769
EBITDA margin (%)
9.10
6.10
8.20
15.00
7.70
6.42
20.41
17.85
7.23
7.34
Operating earnings
-947
-1 702
926
2 398
-1 339
-160
2 845
934
-60
563
Profit/loss before income taxes
-1 498
-3 317
1 603
2 192
-1 698
-295
2 778
645
-566
354
Profit/loss for the period
-972
-3 551
1 525
2 044
-1 884
-363
2 572
481
-982
404
Earnings per share (NOK)
-11.46
-41.86
17.98
24.09
-22.21
-4.28
30.31
5.67
-11.57
4.76
CASH FLOW
Net cash flow from operating activities
514
404
881
602
549
191
2 040
1 928
-15
227
Net cash flow from operating activities per share (NOK)
5.45
4.28
9.34
6.39
5.82
2.25
24.05
22.73
-0.18
2.68
Net cash flow from investing activities
-105
-278
-188
-180
302
-891
-1 956
-2 689
-1 198
-328
Cash and cash equivalents
371
433
912
970
980
1 489
2 650
2 463
1 177
1 082
PRODUCTION/DELIVERIES
Production publication paper (1
000 tonnes)
2 506
2 494
2 492
2 310
1 800
1 921
1 713
1 024
1 124
1 093
Deliveries publication paper (1
000 tonnes)
2 520
2 491
2 485
2 285
1 825
1 952
1 714
1 040
1 115
1 092
Production packaging paper (1
000 tonnes)
164
264
Deliveries packaging paper (1
000 tonnes)
162
248
BALANCE SHEET
Non-current assets
7 184
4 939
4 789
5 248
4 084
4 538
7 069
9 068
10 037
10 594
Current assets
3 313
3 170
3 776
4 991
3 703
4 587
6 539
5 687
4 430
4 113
Total assets
10 497
8 109
8 565
10 240
7 787
9 125
13 609
14 755
14 467
14 707
Equity
2 090
-1 427
2 365
5 493
3 219
3 133
5 909
6 161
5 384
5 819
Equity ratio (%)
19.9
-17.6
27.6
53.6
41.3
34.3
43.4
41.8
37.2
39.6
Net interest-bearing debt
5 038
5 717
2 268
919
725
1 054
1 092
2 590
4 119
4 295
* As defined in alternative performance measures.
0
2 000
4 000
6 000
8 000
10 000
12 000
14 000
16 000
2025
2024
2023
2022
2021
2020
2019
2018
2017
2016
2025
2024
2023
2022
2021
2020
2019
2018
2017
2016
2025
2024
2023
2022
2021
2020
2019
2018
2017
2016
0
500
1 000
1 500
2 000
2 500
3 000
3 500
0
1 000
2 000
3 000
4 000
5 000
6 000
15 214
11 557
10 173
10 482
3 105
2 062
736
769
1 092
2 590
4 119
4 295
TOTAL OPERATING INCOME
EBITDA
NET INTEREST-BEARING DEBT
ABOUT NORSKE SKOG
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Annual report 2025
About Norske Skog’s operations
2025
2024
2023
2022
2021
2020
2019
2018
2017
2016
-1 000
-2 000
-3 000
-4 000
-295
-566
645
354
PROFIT/LOSS BEFORE INCOME TAXES
0
1 000
2 000
3 000
4 000
-1 498
-3 317
1 525
2 192
-1 698
2 778
PRODUCTION CAPACITY
in tonnes/year
Business unit
Newsprint
SC
(magazine
paper)
LWC
(magazine
paper)
Packaging
paper *
Total
capacity
Norske Skog Bruck
-
-
200 000
210 000
410 000
Norske Skog Golbey
330 000
-
-
550 000
880 000
Norske Skog Saugbrugs
-
200 000
-
-
200 000
Norske Skog Skogn
500 000
-
-
-
500 000
Total Norske Skog group
830 000
200 000
200 000
760 000
1 990 000
* The listed capacity is when full production has been reached.
STRATEGY
Norske Skog is a leading European producer of publication and packaging
paper with a business strategy:
1. Improve and optimise publication paper cash flows:
Enhancing efficiency
and profitability in the traditional newsprint and magazine paper segment.
2. Become a leading independent European producer of renewable packaging
paper:
Expanding into recycled containerboard production with converted
newsprint machines at Norske Skog Bruck and Norske Skog Golbey.
3. Integrate vertically within the entire value chain:
Securing long-term
competitiveness by controlling upstream (raw materials) and downstream
(distribution) activities.
This strategy aims to transform Norske Skog into a growing, high-margin
business while leveraging the existing infrastructure and expertise for
sustainable growth.
OPERATIONS
Norske Skog operates four mills in Europe, two in Norway (Norske Skog Skogn,
Norske Skog Saugbrugs), one in Austria (Norske Skog Bruck), and one in
France (Norske Skog Golbey):
• Publication paper capacit
y: 1.2 million tonnes annually (0.8 million tonnes
newsprint, 0.4 million tonnes magazine paper) under the NOR brands like
Nornews, Norcote and NorSC.
• Packaging paper:
Following conversions, Norske Skog Bruck (210
000
tonnes) and Norske Skog Golbey (550
000 tonnes, full production in 2027)
will produce 760
000 tonnes of recycled containerboard under the Strato
brand.
• Energy and bio-products:
Mills generate renewable energy and biogas at
several mills and innovative bio-products.
The company employs 1
674 people, is headquartered in Norway, and is listed
on the Oslo Stock Exchange (NSKOG). The sale of Norske Skog Boyer mill in
2025 reflects a strategic shift to focus on European operations.
MARKETS
• Publication paper:
Norske Skog strengthened its market position in Europe,
during 2025, and holds a 21% market share in newsprint, 13% in SC magazine
paper, and 9% in LWC magazine paper. The market demand decreased in
2025 (newsprint 8%, magazine paper 9%), but further capacity closures is
required to maintain market balance in all grades. Sales prices track marginal
producer cash cost requiring increases for all grades to be sustainable over
the cycle. Main raw material costs have been volatile, although price level for
fresh fibre in Norway has dropped at the end of 2025.
• Packaging paper:
The West-European recycled containerboard market
consumed around 20 million tonnes in 2025, with a 1.3% demand increase
.
Norske Skog’s Golbey mill ramps up production and will reach full capacity
in 2027. Norske Skog Bruck reached full capacity in 2025. Margins remain
pressured by industry overcapacity and volatile recycled fibre costs.
MAJOR SUSTAINABILITY MATTERS
Norske Skog prioritises sustainability, aiming for net zero emissions by 2050,
aligned with the Paris Agreement. Key sustainability efforts include:
• Carbon Footprint:
In 2025, emissions were 157
000 tCO
2
e (Scope 1),
65 000
tCO
2
e (Scope 2, location-based), and 661
000 tCO
2
e (Scope 3), with
a 3% reduction in Scope 3 (75% of total) from 2024 to 2025, where
transportation was around 43% of total carbon footprint. The Norske Skog
Boyer mill divestment significantly reduced the group’s footprint from a total
of 1
210 000
tCO
2
e (Scope 1, 2 and 3) in 2024 to 885
000 tCO
2
e in 2025.
• Emission reduction targets:
A 55% reduction in Scope 1 and 2 emissions
per tonne by 2030 (from 2015 baseline) was 66% by 2025, aided by
investments like Norske Skog Bruck’s waste-to-energy boiler (-100
000
tCO
2
e/year reduction) and Skogn’s TMP line (-4
000 tCO
2
e/year). In 2025,
Norske Skog set a target for reducing Scope 3 emissions 25% by 2030
compared with 2022. Norske Skog aims to cooperate with transport
suppliers to gradually shift to low-emission for in- and outbound transport,
engage with suppliers of raw materials and customers on processing of sold
goods to reduce scope 3 emissions.
• Renewable energy:
Mills leverage renewable sources (e.g., biomass boiler
at Norske Skog Golbey, saving 200
000 tCO
2
e/year), reducing fossil fuel
reliance. The renewableenergy mix increased from 34% in 2024 to 39% in
2025.
• Circularity and innovation:
Using recycled fibre (e.g., containerboard from
recovered paper) and developing bio-products enhance resource efficiency
and lower emissions.
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ABOUT NORSKE SKOG
Our properties
Norske Skog Bruck
General
•
Location: Bruck an der Mur, Styria, Austria
•
Paper mill at Bruck site dates back to 1881
•
Acquired by Norske Skog in 1996
•
Mill type: Containerboard (PM3, from 2023), coated magazine
paper (PM4)
Production machines and capacity
• PM3 (containerboard): ~210,000 t/year
•
PM4 (LWC/MWC paper): ~200,000 t/year
Grid connection
• 100 MW
•
Gas turbine ~40 MW (flexible for internal energy production
and grid balancing)
Plot size
•
25 ha (250
000 m²)
Building area
•
Production facilities 60
000 m²
•
Warehouse 7
000 m² (12
000 tonnes)
• Office 5
000 m²
Significant investment years
•
1953: PM3, converted to containerboard in 2023
•
1989: PM4, last major rebuild 2004
•
1994: power plant combined cycle plant
•
2022: new 50 MW waste-to-energy boiler
Norske Skog Saugbrugs
General
• Location: Halden, Norway
•
Founded: 1859 (as Saugbrugsforeningen), part of Norske Skog
since 1989
•
Mill type: Magazine paper (super-calendered SC)
Production machines and capacity
•
PM4 built in 1963: ~100,000 t/year SC paper
•
PM5 built in 1968: ~100,000 t/year SC paper (restarted 2023)
•
PM6 built in 1993: ~260,000 t/year SC paper (idled after
rockslide in 2023)
Grid connection
• 200 MW
Plot size
•
120 ha (1
200 000
m²)
Building area
•
Production facilities 156
000 m² (79
000 m²)
•
Warehouse 31
000 m² (26
000 tonnes)
• Office 9
000 m²
Significant investment years
•
PM6 added in 1993 after major investment in the 1990s
•
1993: new thermo-mechanical pulp plant
• 2023: PM5 restart
ABOUT NORSKE SKOG
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Annual report 2025
Norske Skog Golbey
General
•
Location: Golbey, near Épinal, Vosges, France
•
Start of operations (greenfield): 1992 (first newsprint
machine built)
•
Mill type: Containerboard PM1, from 2025, newsprint PM2
from 1999
•
Logistics include road and rail access
Production machines and capacity
•
Containerboard capacity: ~550
000 tonnes (converted PM1)
•
Newsprint capacity: ~330
000 tonnes (PM2)
Grid connection
• 150 MW
Plot size
•
70 ha (700
000 m²)
Building area
•
Production facilities 101
000 m² (67
000 m²)
•
Warehouse 28
000 m² (41
000 tonnes)
• Office 4
800 m²
Significant investment years
•
1992: mill start-up (PM1 newsprint)
•
1999: newsprint machine (PM2 newsprint)
•
2024: major conversion of PM1 to recycled containerboard
production
• 2025: automated reel warehouse
•
2025: biomass cogeneration boiler construction
Norske Skog Skogn
General
•
Location: Fiborgtangen industrial area, Skogn, Levanger
Municipality, Norway
•
Start of operations: Mill founded 1962; first paper machine
(PM1) operation in 1966, PM2 in 1967
•
Logistics: The site includes own port, rail siding
Production machines and capacity
•
Three paper machines (PM1, PM2, PM3) producing newsprint
and improved newsprint and bookpaper from mid-2026
•
Total annual newsprint capacity: ~500
000 tonnes
Grid connection
• 225 MW
Site / Land area:
•
825 000
m², including Fiborgtangen Industrial Park
- Of this is mill site ~40 ha (~400
000 m²)
Building area
•
Production facilities 90
000 m²
•
Warehouse 20
000 m² (20
000 tonnes)
• Office 7
000 m²
Significant investment years
•
1966/1967: startup and commissioning of PM1
•
1980s: major upgrades of PM1/PM2
• 1981: start-up of PM3
•
2024: new thermomechanical pulp line and reboiler
• 2026: book paper production
Photos: Norske Skog archive
Annual report 2025
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ABOUT NORSKE SKOG
The history
of Norske Skog
Norske Skog was established in 1962, but our Bruck and Saugbrugs mills
have been in operation much longer. Until the 1990s, the company grew in
Norway by acquiring businesses in pulp, paper and wood-based construction
materials.
Through the nineties, Norske Skog expanded internationally, first with the
construction of a mill in France and later through acquisitions of other
newsprint and magazine paper companies all over the world. The activities
within other paper grades, market pulp, energy and construction materials
were sold off. In recent years, the company has entered the recycled
containerboard market, and several projects related to energy and bio
products.
As of 2025, Norske Skog has four mills in three countries and is one of the
world’s largest producers of publication paper to newspapers, magazines,
periodicals and for advertising purposes. Norske Skog is listed on the Oslo
Stock Exchange and had 1
674 employees at year-end 2025.
1962
Norske Skog was established by
Norwegian forest owners. The purpose
was to exploit timber resources in
central Norway, and a newsprint mill
was built at Skogn, starting production
in 1966.
1992
Expansion outside Norway, start-up of
production in Golbey in France, our first
business outside of Norway.
1996-1997
Purchase of paper mills in Austria and
the Czech Republic.
2000
Sale of pulp mills in Norway. Purchase
of Fletcher Challenge Paper in New
Zealand, a firm with operations in
Australasia, South America, Canada
and Asia.
2001
Purchase of mills in Germany and
the Netherlands. Comprehensive
restructuring of the business, and
divestment of activities outside the
defined core area of newsprint and
magazine paper.
Expansion in Norway
1970 - 1990
Global expansion
1991 - 2005
ABOUT NORSKE SKOG
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Annual report 2025
2009
Sale of two mills in China, shut-down
of one paper machine in Europe.
2012
Sale of two mills in Chile and the
Netherlands, shut-down of Follum paper
mill in Norway.
2013
Sale of two mills in Brazil and Thailand.
Two machines idled at Norske Skog
Tasman in New Zealand and Norske
Skog Walsum in Germany.
2014
Ramp-up of a converted newsprint
machine to LWC-products at Norske
Skog Boyer in Australia.
2018
New beginning with Oceanwood
purchasing the shares in Norske Skog
AS, which included all the mills.
2024
At Norske Skog Skogn, a new
thermomechanical pulp (TMP) line
was commenced, substituting
long-transported recovered paper with
local fresh fibre, thus reducing the
CO2- and nitrogen emissions.
The Green Valley Energie (GVE) joint
venture at Norske Skog Golbey started
production at the largest bio energy
plant of its kind in France.
2025
At Norske Skog Golbey, the converted
newsprint machine (PM1) started
commercial production of container-
board. Norske Skog Boyer was sold
in 2025.
2026
Norske Skog Saugbrugs are exploring
the possibility to restart PM6 and to
establish data centre on the industrial
site. Norske Skog Saugbrugs reached an
agreement with Norsk Nuklæar
Dekommisjonering (Norwegian Nuclear
Decommissioning) to sell the production
facilities, housing PM4 and PM5, in
2026, for dismantling the nuclear
reactor in Halden.
2006
Five newsprint machines shut
down, shares in the Canadian
business sold.
2015
Closure of the Walsum mill in Duisburg,
Germany.
2019
New three-leg strategy within
publication paper, packaging paper, and
bio and energy related products.
Norske Skog ASA was listed on the
Oslo Stock Exchange.
2022
Sale of Nature’s Flame 90
000 tonnes
pellets facility in New Zealand. Start-up
waste-to-energy plant at Norske Skog
Bruck. At Norske Skog Saugbrugs, a
500 tonnes bio-composite pilot plant was
officially opened by the Norwegian Trade
and Industry Minister Jan Chr. Vestre.
During 2022, the Norwegian based
Byggma AS and Drangsland Kapital AS
became the largest shareholder group
in Norske Skog.
2023
Norske Skog Bruck commenced recycled
packaging paper production in the first
quarter of 2023. The production capacity
of containerboard at Norske Skog Bruck
will be 210
000 tonnes per year.
Oceanwood sold all of its shares in
Norske Skog.
2008
Sale of two mills in South Korea, sale of
property, shut-down of two paper
machines in Europe.
2017
The Royal Highness King Harald of
Norway officially opened new biogas
facility at Saugbrugs.
Norske Skogindustrier ASA was
delisted from the Oslo Stock Exchange,
and the mill portfolio continued by
Norske Skog AS.
2020
Sale of the Norske Skog Albury mill in
Australia and the forest in Tasmania.
Establishing commercial activities within
nanocellulose and expansion in
biopellets.
2021
Closure of the Norske Skog Tasman mill
in New Zealand. Expansion into
biocomposites and starting construction
of a waste-to-energy plant at Norske
Skog Bruck. Financing the conversion of
two newsprint machines at Norske Skog
Bruck, and Norske Skog Golbey into
containerboard production.
Comprehensive restructuring
2006 - 2014
Financial restructuring
2015 - 2018
New beginning
2019 - 2021
Execution of new strategy
2022 -
Photos: Norske Skog archive
Annual report 2025
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ABOUT NORSKE SKOG
A glimpse of 2025
from the containerboard opening ceremony at Norske Skog Golbey
Here are some pictures from the Norske
Skog Golbey conversion of paper
machine (PM1) from newsprint to
packaging paper. Films that follow the
development of Golbey industrial site
can be seen on Norske Skog’s
LinkedIn account.
From left Geir Drangsland (CEO), Arvid Grundekjøn (Chair) and Yves Bailly (MD Golbey)
From the opening ceremony with more than 300 guests
Carine Bernardin receiving special attention from the CEO
Former employee Jean-Paul Larriere, the CEO Geir Drangsland and General Manager Golbey Yves Bailly.
FROM LEFT Robert Wood (SVP Commercial), Gert Steens (Sterling)
and David Zobel (Cove Invest).
Photos: Carsten Dybevig
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ABOUT NORSKE SKOG
/ A GLIMPSE OF 2025
Norske Skog Saugbrugs wins the 2025 AKAN award
We are proud to announce that Norske Skog Saugbrugs has received the
AKAN Award 2025, honouring our systematic work to prevent addiction
and strengthen a safe, supportive and inclusive workplace culture.
AKAN recognises Norske Skog Saugbrugs for having worked systemati-
cally for decades to build a strong culture of care, partnership, and respons-
ibility. With a long tradition of close cooperation between management and
employees, Norske Skog Saugbrugs has also shown exceptional commitment
in recent years to supporting apprentices and addressing issues linked
to substance use and mental health.
“Presenting the award to Halden’s cornerstone company, one with a long
tradition of cooperation, engaged top management, and a deeply ingrained
culture of care, is a great pleasure,” says Lasse Billington, Chair of the
Board at AKAN Competence Center.
“Our AKAN work is firmly rooted in both culture and practice through
clear leadership anchoring, solid cooperation, systematic follow-up, and
genuine care,” says HR Advisor Rannveig Staal Pettersen, who received the
award together with HSE Manager Lisa Grimstad, youth representative
Erik Hoffgaard, and union leader Tore Østensvig.
Christoffer Bull is our new SVP Business
Development
at Norske Skog, with responsibility
for the company’s packaging paper business,
effective 1 January 2026.
- After many fulfilling years with Norske Skog
earlier in my career – and more recently as a board
member – I’m genuinely thrilled to step back into
an operational role at such a pivotal moment for
the company. Our expansion into packaging paper
marks an exciting new chapter for Norske Skog,
and I have strong confidence in the strategic
direction we’re pursuing, says Christoffer Bull.
With the successful start-up of recycled
containerboard production at Norske Skog Bruck
and the ongoing ramp-up at
Norske Skog Golbey,
the group is building a strong platform for future
growth. Our Strato packaging paper portfolio
combines lightweight performance, high strength
and sustainability, based entirely on locally
sourced recycled fibres. This is a compelling value
proposition for our customers and the packaging
industry.
– I’m optimistic about the future and highly
motivated by the opportunity to work closely
with skilled colleagues across the organisation.
Together, we will continue to develop competitive
products, strengthen customer relationships and
position Norske Skog as a reliable, independent
supplier to the packaging market. I look forward
to the journey ahead, says Christoffer.
Zero absence injuries in the last year at Saugbrugs – always safety first
At Norske Skog Saugbrugs, a strong safety
culture is more than a goal – it’s a way of working.
The site has now gone for one year without any
injuries causing absence, a significant achieve-
ment in a complex industrial environment with
nearly 346 employees, including 17 apprentices.
This milestone builds on a long-standing
commitment to health and safety. Over the last
eight years, only two absence injuries have been
recorded – an extraordinary accomplishment.
Even more impressively, Saugbrugs had zero
absence injuries for a full five-year period between
2017 and 2022.
“Our focus on health, safety and environment is
deeply embedded in everything we do,” says Lisa
Beate Grimstad, Director of Health, Environment,
Safety and Quality at Saugbrugs. “We work
continuously to improve working conditions and
ensure that everyone – whether new apprentice
or experienced operator – returns home safely
every day.”
Saugbrugs holds ISO 45001 certification and
actively implements Norske Skog’s “Take Care
24/7” safety programme. The result? A workplace
where awareness, leadership, and safe behaviours
go hand in hand.
A big thank you to everyone at Saugbrugs for
their dedication. You prove that zero injuries isn’t
a dream – it’s a standard we can achieve together.
Working together to keep zero harm injuries
from left: Fabian Granstrøm, Knut Stian Fagerhøi,
Lisa Grimstad, Svein Atle Fjellstad and Tikua Paulo.
From left: Fabian Granstrøm, Knut Stian Fagerhøi, Lisa Grimstad,
Svein Atle Fjellstad and Tikua Paulos.
“The AKAN Award gives us extra motivation to keep improving how we support
employees,” concludes a delighted Tore Østensvig.
Managing Director Anders Hauge-Johansen says: “This recognition means a
great deal to us. A safe and inclusive workplace is a cornerstone of our culture,
and the AKAN Award confirms that our long-term efforts truly make a difference
for our employees.”
From left Lisa Grimstad and Erik Hoffgaard from Saugbrugs, and Lasse Billington from AKAN
Photos: Norske Skog
Photo: Vilde Fagerland, Akan kompetansesenter
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A GLIMPSE OF 2025
/
ABOUT NORSKE SKOG
Balancing energy: Sustainability and grid security for Austria at Norske Skog Bruck
“The K9 bio boiler is a game changer, cutting emissions
while enhancing grid flexibility,” says Harald Janisch,
Senior Project Manager.
At Norske Skog Bruck, we’re stabilising Austria’s
power grid-flexibly and sustainably. Our mill actively
participates in balancing energy, compensating for
fluctuations from wind and solar feed-ins to ensure a
secure power supply.
Norske Skog Bruck slashed scope 1 and 2 CO2
emissions
from
400
to
250
kg
CO2e/tonne
(2022–2025) by investing in the new K9 bio boiler,
fueled by household waste, and reducing gas usage
for mill energy.
“Our upgraded K8 power-to-heat boiler, converted
by InoPower, now absorbs 25 MW during surplus
periods, boosting renewable integration without
compromising reliability,” says Janisch.
This is Norske Skog Bruck’s contribution: more
renewables in the grid, lower emissions, and unwavering
security of supply. Constant improvement drives us
forward.
Turning biomass into a climate-positive future
Using emissions from sustainable biomass allows
CO2 to be utilised as a resource: Carbon capture
at Skogn is a natural extension of our work for
sustainable value creation in Trøndelag (Central
Norway). Together with Carbon Centric, we can
contribute to solutions that actually remove CO2
from the atmosphere and make the mill carbon
negative,” says Peder Lutdal, Head of Business
Development at Norske Skog Skogn.
Carbon Centric is planning a carbon capture
facility at Norske Skog Skogn in Levanger – a
project that will be capable of capturing 100
000
tonnes of biogenic CO2 annually while creating
new green industrial activity in the region.
By capturing carbon that is already part of the
natural cycle, the project enables both industrial
use and permanent storage – an important step
toward truly carbon-negative and climate-positive
solutions.
Pollutec 2025: Building tomorrow’s recycling together
Our paper and containerboard recycling purchasing
team just wrapped up an inspiring 4 days in Lyon at
Pollutec – the epicenter of environmental innovation!
From passionate talks on circularity and waste-
management to high-impact conferences, every
conversation reinforced how collaboration drives
real change. Our stand buzzed with constructive
exchanges in a warm, welcoming vibe – proving
sustainability and performance go hand in hand.
Norske Skog Golbey started containerboard
production in 2025 and will reach 550
000 tonnes
capacity in 2027 in addition to 330
000 tonnes of
newsprint. Norske Skog Golbey will thus become a
substantial purchaser of recycled paper for the
newsprint machine and old corrugated cardboard
(OCC) for the containerboard production.
The Golbey team is grateful to our suppliers and
partners for co-creating the future of recycling.
The paper and recycled cardboard procurement
team: Jean-Luc Maupoix, Joachim Ané, Gabriel
Langlois, Nathalie Clavier and Frédéric Ricquebourg
(from left to right in the picture).
Inspiring the next generation in Halden
Building strong communities starts with investing
in people.
At Norske Skog Saugbrugs, we are proud to
take part in a pilot project together with Rødsberg
Secondary School, Halden Næringsutvikling, and
local businesses through the subject Arbeidsliv
(Working Life).
The goal is simple but important: to give students a
closer look at the opportunities available in
Halden’s industries – and perhaps inspire future
careers.
Rannveig Staal Pettersen from Norske Skog
Saugbrugs says: “As part of the programme, we
welcomed the students for a mill tour and shared
insights in the classroom. It was a great chance to
showcase what an apprenticeship at Saugbrugs
can offer and to highlight the exciting role industry
plays in the local community.”
This initiative is not only about introducing
students to our workplace – it’s an investment in
tomorrow’s skilled workforce.
Cato Magnussen from Norske Skog Saugbrugs
says: “By opening the doors, we hope to spark
curiosity, create understanding, and strengthen
the link between young people and local industry.”
Business Development Director at Skogn, Peder Lutdal
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ABOUT NORSKE SKOG
/ A GLIMPSE OF 2025
Presenting Yan Vassart - our containerboard project leader
With a rich career spanning decades in the paper
industry, Yan has played a crucial role in several
major projects, from the PM2 launch in 1997 to
rebuilds in Australia and the Netherlands. His
expertise in conversions and containerboard
made him a natural fit for the Golbey Box project in
2019. As project lead, he leveraged his experience
with both Valmet and Voith technologies to oversee
the transformation of PM1. “It was a nice return to
my starting point, 18 years later” he reflects.
Looking ahead, Vassart is confident in the
success of testliner and fluting production at
Norske Skog Golbey, emphasising that it presents
different but manageable challenges compared to
newsprint. With the added advantage of learning
from Norske Skog Bruck’s operations, he trusts the
operational team to navigate issues such as stickies
and food contact requirements. “I have full faith in
our operational team on site” he states, under-
scoring his optimism for the future.
Norske Skog Skogn enters the European book paper market with NOR Book
This strategic move diversifies our portfolio at
Skogn, leveraging a NOK 40 million investment in
paper machine 1 (PM1) to flexibly produce both
newsprint and high-quality book paper with a
capacity of over 140
000 tonnes.
In collaboration with ANDRITZ, our low-capex
project enables production of bulky, bright, and
sustainable book paper using 100% virgin fibre
and our premium thermomechanical pulp. With
successful trial runs and industry-leading low
CO2 emissions, NOR Book is set to meet the
stable European demand for wood-containing
book paper (~4-500
000 tonnes/year).
The Managing Director at Skogn, Håvard
Busklein, shares: “The project team’s creativity
and entrepreneurial spirit have paved the way for
this
milestone.
NOR
Book
strengthens
our
competitiveness, targets stable markets, and
positions us to become a top three supplier of
book paper in Europe.”
This transition will gradually reduce newsprint
exports to Asia while maintaining seamless news-
print deliveries. We’re excited about the positive
feedback from customers and can’t wait to deliver
NOR Book to the market.
We were honored to join the opening of the newly
converted PM1
at Norske Skog Golbey - a defining moment
that ushers in a bold new chapter for our Golbey site and for Norske
Skog as a group.
French media widely recognised the event: Le Journal des
Entreprises and GraphiLine marked the milestone of the first
recycled containerboard reel produced on 22 May 2025, high-
lighting the project as the largest industrial investment in company
history of about EUR 400 million. Coverage in Vosges Info further
emphasised that this transition transforms Norske Skog Golbey
into a strategic hub for sustainable packaging in Europe.
In his remarks, CEO Geir Drangsland called the PM1 start up “a
significant milestone for Norske Skog and everyone at Golbey,”
thanking all involved and emphasising the future role of container-
board in our portfolio. He reiterated the company’s commitment to
ramp up, sustainability, and reliable customer deliveries.
Watch the enclosed video interview with Geir Drangsland as he
reflects on the promising economic future for the Golbey mill with
the new packaging production line.
Geir Drangsland being interviewed by French media.
From left: Håvard Busklein (MD), Tor Muren, Wenche
Fuglem and Peder Lutdal. (Photo: Svein Helge Falstad)
Photos: Norske Skog
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A GLIMPSE OF 2025
/
ABOUT NORSKE SKOG
2025 has been a defining year for Norske Skog. After years of heavy
investment, restructuring, and strategic repositioning, we are now seeing
tangible results. We have moved from capital strain and uncertainty into a
phase of operational improvement, stronger liquidity, and growing confidence.
A TRANSFORMATION BACKED BY ACTION
The new packaging line (PM1) at Norske Skog Golbey, the largest investment
in our history, is now delivering record production of recycled containerboard,
a packaging paper product. While ramp-up costs have temporarily impacted
profitability, operational performance improves steadily, with full utilisation
targeted in 2027. Soon we will reach a production capacity of 760
000 tonnes.
With future plans at Norske Skog Saugbrugs adding a further 300
000 tonnes
of packaging paper, the group’s packaging paper volumes will exceed those of
publication paper. This development confirms both the validity and the long-
term value of our chosen strategy.
At Norske Skog Skogn, we will in 2026 start producing book paper to customers
in a stable European book paper market unlike the still declining newsprint
market. Several other initiatives will improve fibre quality, reduce energy
consumption, and increase grid flexibility. In addition, Norske Skog Bruck has
almost reached full containerboard capacity. Across the group, we are
intensifying cost optimisation.
After years of heavy capital outflows, particularly related to Golbey, we are
rebuilding liquidity. The machine is operational, records are being set, and the
focus is now clear: utilise equipment and people more efficiently and
significantly increase cash flow.
Much of the company’s financial commitments were entered into before my
tenure, and repayment profiles have been demanding. This has required
discipline and endurance. Through divestments, efficiency improvements, and
balance sheet clean-up, we are restoring trust and strengthening resilience.
Structural measures are not weakness, they are necessary steps toward long-
term competitiveness.
The sale of selected Saugbrugs properties to Norsk Nukleær Dekommisjonering
further strengthens equity and liquidity.
CLIMATE RESULTS WE CAN BE PROUD OF
Our transformation is also environmental. In 2025, total emissions declined
significantly. Scope 1 and 2 emissions per tonne are down 54% since 2015,
bringing us close to our 2030 target. Scope 3 emissions fell 20% year-on-year,
with transport, the largest share of our footprint, now a key focus area for
lower-emission solutions.
Investments such as the waste-to-energy plant at Bruck, the biomass boiler at
Golbey, and energy efficiency measures at Skogn reduce emissions while
strengthening competitiveness. Circularity and renewable energy integration
are structural advantages. Our ambition of net zero by 2050 remains firm.
CONTINUITY, ENDURANCE AND THE PEOPLE
Transformation comes at a cost. The turnaround has required continuity,
stamina, and a major collective effort across mills and corporate functions. We
have highly skilled employees. Leadership’s role is to cultivate competence,
engagement, and ownership. Without people, machines are idle.
Recent years have brought financial scrutiny and market scepticism. Such
uncertainty affects organisations. But momentum is now tangible: results are
improving, liquidity is strengthening, and confidence is returning.
I have personally invested significantly in the company. That reflects my belief
in our industrial platform and our responsibility to create long-term shareholder
value.
INTEGRATION AND STRATEGIC FLEXIBILITY
We are searching opportunities to strengthen the company’s position, which
may imply:
•
Upstream integration to secure fibre and reduce volatility
•
Downstream integration to improve margins and market access
•
Sideways integration where adjacent opportunities create value
At Saugbrugs, we are evaluating a potential PM6 rebuild for SC magazine
paper and TMP-based packaging paper (kraftliner), alongside new energy-
and infrastructure-related opportunities. The 200 MW of available powered
land is a valuable asset for us. This may create many opportunities and attract
strong interest from businesses and investors. We will carefully evaluate how
surplus energy and infrastructure can create value in the long term.
Golbey provides packaging scale. Saugbrugs offers optionality. Skogn
broadens our product mix through newsprint and book paper. Bruck combines
packaging and renewable energy. This flexibility is a core strength.
LOOKING AHEAD
We are closing a period defined by heavy investment and entering one defined
by optimisation and cash flow. Large projects are largely completed. The focus
is now operational excellence.
We will continue to improve operations.
We will continue to reduce emissions.
We will explore value chain opportunities.
And we will continue to honour the people who make this company what it is.
With continuity, endurance, skilled employees, and clear ambitions, we are
positioning Norske Skog improve position in the value chain as a stronger, and
more resilient European industrial company. And we are just getting started.
Geir Drangsland
CEO
Steering forward with strength
and stamina
ABOUT NORSKE SKOG
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I have personally invested significantly in the
company. at reflects my belief in our
industrial platform and our responsibility to
create long-term shareholder value.
Photo:
Carsten Dybevig
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ABOUT NORSKE SKOG
Reinventing Norske Skog
From newsprint to world-class recycled containerboard
Recycling at scale:
old corrugated containers (OCC) at the core
The core part of Bruck’s and Golbey’s stories are
material circularity: the containerboard lines use
recycled old corrugated containers as raw material,
at full production capacity it will process around
900 000
tonnes/year. The OCC supply is sourced
from both municipal sorting and industrial users
within a 250–500 km radius of the mills.
Across Europe, recycled paper accounts for >95%
of containerboard fibre inputs, reflecting the deep
integration of recycled feedstocks in packaging
production.
A strategic turn: Conversion of two newsprint machines
At its Golbey mill in northeastern France, Norske
Skog has undertaken a major transformation on one
of the newsprint machines, shifting from newsprint
to sustainable packaging. The conversion of PM1
into a state-of-the-art recycled containerboard
machine represents the largest investment in the
company’s history (about EUR 400 million).
The rebuild involved decommissioning wood pulp
systems, installing recycled OCC pulping lines,
redesigning stock preparation and material flows,
and implementing new automated winding, finishing,
and logistics systems. The upgraded machine is
designed to produce approximately
550 000
tonnes
per year of high-quality recycled containerboard –
nearly doubling its former newsprint capacity.
A similar shift has already been completed at Norske
Skog Bruck in Austria, where PM3 was converted
from publication paper to recycled containerboard,
marking the group’s first move
into packaging. The
rebuild included significant
upgrades to stock
preparation, machine components, and finishing
systems to handle recycled fibres and meet modern
packaging standards.
Together, Golbey and Bruck represent a strategic
repositioning
of
Norske
Skog
from
declining
publication markets toward growth in renewable,
circular packaging.
Photo:
Adobe Stock
ABOUT NORSKE SKOG
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Our new containerboard product brand Strato
The new Norske Skog containerboard Strato port-
folio is designed to address the full spectrum of
recycled packaging needs. Norske Skog has entered
the 20 million tonnes market of recycled container-
board in Europe after the rebuild of two newsprint
machines at Golbey and Bruck. It includes:
• Strato Fluting: the ridged inner layer that gives
corrugated board strength.
• Strato Testliner: robust outer layers for boxes
demanding high printability and strength.
•
Strato Dual: used as either a printed or unprinted
liner or as corrugating medium, offering certified
quality and suitability for a wide range of appli-
cations, including food contact.
By focusing on recycled fibre and product grades
aligned with corrugators across Europe, Bruck and
Golbey leverage both environmental credentials
and tangible performance – a key differentiator in a
market increasingly conscious of circularity.
Experiences from the first years of commercial sale of containerboard
At the Norske Skog Bruck mill
At Norske Skog’s Bruck mill, the transition from
newsprint to containerboard has marked an exciting
new chapter in the company’s long-standing paper-
making tradition. This Q&A highlights the mill’s
experiences with its containerboard products, the
insights gained from early customer interactions,
and the challenges and opportunities that come
with entering the packaging market. From technical
adjustments and supply chain differences to
customer relationships and market outlooks, the
following discussion offers a candid look at how
Norske Skog Bruck is navigating its move into the
growing containerboard segment.
Q: What are the experiences with containerboard
so far, the product, the customers, etc?
A: “Containerboard production is not that different
from newsprint. Thanks to the excellent paper-
making and project management skills of our
employees, we were able to get the converted
machine up and
running in a relatively short time.
The raw material and the fiber production plant
were new to us. The basis weight of corrugated
base paper is also significantly higher. Our early
customers provided us with ongoing feedback on
product quality in the spirit of partnership, thus
playing a crucial role in the start-up phase. ”
Q: What’s different/what changed from newsprint
to containerboard?
A: “Containerboard is part of a different supply chain.
Our customers produce corrugated board sheets
for packaging production on corrugated board
lines. A large proportion of our customers supply
consumer goods to manufacturers. The order cycle
differs in this business. As an
independent paper
producer, we supply many independent corrugated
board manufacturers as well as integrated corrugated
board manufacturers, often also customers with
their own paper production, in our markets.”
Q: How is it to work with the new customers?
A: “Our independent corrugated board manufac-
turers are a small, select group in Europe. When we
launched our Strato products in 2023, we were
warmly welcomed and accepted as a new supplier,
despite the challenging market conditions. Several
of our customers recognise us as a company with
outstanding service, thanks to our logistics, on-time
delivery, and overall performance.”
Q: What are challenges ahea
d?
A: “The packaging industry is a growing market,
even though our launch coincided with the recession
in Europe. Currently, the entire industry is facing
economic challenges. This is due to overcapacity in
both the paper and corrugated board markets. Time
and market growth will heal these wounds. In parallel,
we are beginning to develop new products to expand
our product portfolio for our customers, out of our
two production plants in Europe.”
On the pictures from left to right: Vanessa Gmeinbauer (Inside Sales Containerboard), Michael Schramböck (Director Sales & Logistics),
Alexandra Paar (Assistant Sales & Logistics), Thomas Moser (Sales Director CB Bruck), Johannes Moser (Production Manager CB Bruck).
Photo: Enzo Zadra
Photo:
Adobe Stock
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ABOUT NORSKE SKOG
Experiences from the project and initial
containerboard commercial phase
At the Norske Skog Golbey mill
Yves Bailly, Managing Director of Norske
Skog Golbey
Q: What was the biggest technical hurdle in
converting PM1?
A: “The PM1 conversion accounts for nearly
one third of the BOX project. It is the most
visible part of the transformation (the tip of
the iceberg).
Behind it, an entire industrial ecosystem has
been reshaped: the OCC pulp mill, a new high-
tech storage building, a new winder at the
heart of the line, as well as major adaptations
to our utilities, notably renewable energy
systems and the wastewater treatment plant.
The greatest technical challenge was not only
to install new equipment, but to successfully
integrate this major transformation into an
existing site, under very demanding constraints
(particularly in terms of space limitations and
simultaneous operations).”
Rémi Duchaine, OCC Operations
Q: How has recycling changed your
day-to-day work?
A: “The OCC process differs little from the DIP
process that we have known in Golbey for a
very long time. Even though the TMP has been
completely dismantled, the pulp production
process is quite similar. Ultimately, in our daily
lives, what changes the most is no longer
smelling the resin and forest scent that used
to fill the workshop when we were still
producing pulp from wood.”
Stephan Simeray, Customer service manager
Q: Customers demand consistency — how did you
manage that?
A: “Containerboard is a commodity paper, and both
production and quality teams are mobilised to meet the
required specifications. Customer feedback after test-
ing allows us to adjust our production if necessary.
Today, we can proudly say that our containerboard is
approved by many of our customers, which was a race
against time at the end of 2025. And of course, as with
any commodity, service is also crucial: On-Time In-Full
deliveries are key! It is up to all of us together to achieve
long-term results now.”
Philibert Vinot, Logistics manager
Q: What’s new since the warehouse automation
was installed?
A: “We have taken charge of this new tool, which
allows us to gain fluidity and speed. The cameras
throughout the building enable remote access and
instant control of the storage system. The more
time passes, the more experience we gain, which
allows us to improve the preparation time of
batches. This automation also has the advantage of
reducing drivers’ waiting times.
In addition to these time savings, our warehouse
also allows us to optimise storage, thanks to
stacking the coils up to 15 meters high.”
ABOUT NORSKE SKOG
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Marie-Christine Laurent, Occupational
health nurse
Q: What was the major project you led in
2025?
A: “At Norske Skog Golbey, HSE isn’t just
about safety and the environment, employee
health matters just as much. From managing
fatigue to boosting overall well-being, our
initiatives help workers stay safe, alert, and
resilient. In 2025, I organised the first sophrology
workshops for shift workers. Their schedules
often disrupt sleep, so the breathing, relaxation,
and visualisation techniques provided practical
tools to manage fatigue and improve recovery.”
Q: Why was this project important to you?
A: “Shift work affects sleep, alertness, and
overall health. Offering tools to improve safety,
physical and mental well-being, and quality of
life was therefore essential to me.”
Q: What are your next challenges for 2026?
A: “I will pass on my knowledge before retiring
after more than 40 years of work, including 12
years at Norske Skog Golbey. I will also continue
a 2025 project on musculoskeletal disorders to
better identify, prevent, and reduce workplace
risks.”
Pierre Vanier, Newsprint line manager
The entire raw material process was subject to
changes due to the rebuild of PM1. Here are some
thoughts from the line manager on PM2, the
330 000
tonnes machine.
Q: What was the major project you led in 2025?
A: “We increased PM2 newsprint production in the
second half of 2025 and identified its optimal
operating speed with 100% DIP pulp. The machine
has responded very well to the higher speed, which is
promising for the future.”
Q: Why was this project important to you?
A: “It proves the machine can deliver target volumes with
strong stability. Since switching to 100% DIP nearly
three years ago, we have continuously improved. The
2024 procedures delivered results in 2025, enabling
year-on-year growth. It is rewarding to see our efforts
pay off, and 2026 will build on this momentum.”
Q: What are your next challenges for 2026?
A: “Our focus will be stabilising the entire line:
upstream at the pulp plant and downstream at the
finishing machine converting jumbo reels into smaller
reels. This will support further production increases.”
Thierry Dubois, Operations director
Q: What was your greatest achievement in 2025?
A: “The first thing that comes to my mind is the production
of the first containerboard jumbo reel, as it represents the
culmination of several years of reflections and challenges.”
Q: Why was this milestone important to you?
A: “A large part of the team was there to witness it. The
energy that day was palpable - a mix of joy, pride, relief,
and anticipation.
Q: What are your next challenges for 2026?
A: “I will take charge of the two production lines at Golbey:
the packaging paper line and the newsprint line. Major
challenges lie ahead as we strive to deliver to our customers
with quality, quantity, and on time. I am very confident as I can
count on committed, professional, and highly skilled teams
who will stay focused on achieving this shared goal.”
Martine Bortolotti, Sustainability lead
Q: What lessons about sustainability have
you learned?
A: “Sustainability is not limited to recycling,
responsible water use and carbon footprint
reduction – it also encompasses safety and
quality of working life for our employees,
responsible procurement, and community
involvement. It is a comprehensive approach
that applies across the entire value chain,
from our suppliers to our customers.”
Linda Omland, Marketing director
Q: The market is evolving; how do you
keep up?
A: “The best way to understand changes is to
meet customers, which is what I and the local
sales teams do daily. Our current product range
perfectly meets the corrugators’ needs: we
produce sustainable and lightweight container-
board without compromising on quality. Thanks
to the performance of our paper machine and
the commitment of our teams in the mill and on
the field, we are ready to meet today’s needs
and anticipate those of tomorrow.”
Photos: Cyrielle Nussbaum
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ABOUT NORSKE SKOG
Norske Skog Golbey
Photo: Lézards Création
Board of directors
ARVID GRUNDEKJØN
(1955)
Chair since 2023, Board member since 2018
Current election period:
Elected board member on 10 April 2025, for a two-year period (2025-2027)
Independent:
Yes
Residence:
Oslo, Norway
Education:
Executive programme, Harvard Business School (USA), Master of Law, University of Oslo (Norway), Master
of Business and Economics, Norwegian School of Economics (Norway)
Position:
Investor and professional board member
Directorships:
Chair of Infima AS, Chair of Creati Estate AS, Chair of Cardid AS and Chair of Stiftelsen Fullriggeren
Sørlandet
Shares in Norske Skog ASA:
Owns and/or controls 101
617 shares.
TRUDE ULVEN
(1971)
Board member since 2025
Current election period:
Elected board member on 10 April 2025, for a two-year period (2025–2027)
Independent:
Yes
Residence:
Løten, Norway
Position:
CEO of Strand Unikorn AS
Education:
Candidate Agriculture degree from Norwegian University of life sciences (Ås, Norway), Master of Business
Administration from NHH – Norwegian School of Economics (Bergen, Norway)
Directorships:
Chair of Norgesfôr AS, Chair of Vestfoldmøllene AS, Chair of 3B Agro AS, Board member Obio AS,
Board member Norkorn
Shares in Norske Skog ASA:
Owns and/or controls 0 shares.
EVA KARLSSON BERG
(1959)
Board member since 2025
Current election period:
Elected board member on 10 April 2025, for a two-year period (2025-2027)
Independent:
Yes
Residence
: Karlstad, Sweden
Professional activity:
Experienced board member skilled in areas of higher education, industrial process control,
operations management, international business, biofuels, and biomass.
Education:
Master of Science in Chemical Engineering at Chalmers Technical University (Gothenburg, Sweden)
Directorships:
Board member of Montagetjänst AB Forshaga, delegate to Länsförsäkringar Värmland and Board
member of Karlstad Fotboll
Shares in Norske Skog ASA:
Owns and/or controls 0 shares
TERJE SAGBAKKEN
(1973)
Board member since 2024
Current election period:
Elected board member on 11 April 2024, for a two-year period (2024-2026)
Independent:
No (Terje Sagbakken is a board member of Byggma ASA which is ultimately controlled by the CEO,
Geir Drangsland, who also controls 22774
079 shares in Norske Skog ASA.)
Residence:
Gjøvik, Norway
Position:
Manager lean and industrialization in Nammo AS
Education:
Master’s Degree in Sustainable Manufacturing from the Norwegian University of Science and Technology
(NTNU) in 2016, Bachelor’s Degree in Wood Technology from Ingeniørhøgskolen i Gjøvik in 1996
Directorships:
Board member of Byggma ASA and Forestia AS
Shares in Norske Skog ASA:
Owns and/or controls 15
900 shares
Observers
TORE CHRISTIAN ØSTENSVIG
(1976)
Observer since 2022
Position:
Main employee representative Norske Skog
Saugbrugs. Line operator pulp (TMP) mill at Norske Skog
Saugbrugs
ASBJØRN ANDRÉ DYPDAHL
(1972)
Observer since 2023
Position:
Main employee representative Norske Skog
Skogn. Winder operator Norske Skog Skogn
ABOUT NORSKE SKOG
24
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Norske Skog
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Annual report 2025
GEIR DRANGSLAND
(1962)
Chief Executive Officer from 1 September 2023
Professional experience:
CEO in Byggma ASA
CFO in Avantor AS, Elkjøp Norway AS and
Idun Industri AS
Education:
Master of Business Administration,
BI Norwegian Business School (Oslo, Norway)
Directorships:
Numerous subsidiaries in Byggma
and Norske Skog group
Shares in Norske Skog ASA:
Owns and/or controls 22
774 079
shares
Synthetic options:
272 000
Corporate management
EINAR BLAAUW
(1980)
Senior Vice President General Counsel
In Norske Skog since 2014
Professional experience:
Vice President Legal, Norske Skog
Attorney, Advokatfirmaet Thommessen
Attorney, Clifford Chance
Education:
Attorney Practicing Certificate (Norway),
Master of Laws, University of Bergen (Norway)
Shares in Norske Skog ASA:
Owns and/or controls 0 shares
Synthetic options:
232 000
ROBERT A WOOD
(1962)
Senior Vice President Commercial
In Norske Skog since 1987
Professional experience:
Vice President Commercial, Norske Skog
Managing Director Central European Hub, Norske
Skog Deutschland GmbH
Vice President European Sales, Norske Skog
General Manager Norske Skog PanAsia (Shanghai)
Various positions in Commercial Consulting Co. Ltd.
(China), Herald and Times (Glasgow), Strathclyde
Police (Glasgow)
Education:
Bachelor of Science (1st Class Hons),
University of Strathclyde (Scotland)
Shares in Norske Skog ASA:
Owns and/or controls 5
263 shares
Synthetic options:
291 000
TORD STEINSET TORVUND
(1990)
Chief Financial Officer
In Norske Skog since 2020
Professional experience:
Finance Director, Norske Skog Saugbrugs
Group Business Analyst, Norske Skog
Auditor in KPMG AS
Education:
Master of Accounting and Auditing, Norwegian
School of Economics (Bergen, Norway), Master of
Financial Economics and CEMS Master of
International Management, Norwegian School of
Economics (Bergen, Norway) and St. Petersburg
State University (Russia)
Shares in Norske Skog ASA:
Owns and/or controls 11
000 shares
Synthetic options:
176 000
CHRISTOFFER BULL
(1976)
Senior Vice President Business Development
In Norske Skog since 2026
Professional experience:
Chief Operating Officer Greenbit Energy AS.
Marketing Director at the following Norske Skog
mills: Follum, Golbey and Saugbrugs
Education:
Maîtrise de Sciences Economiques (Master of
Economics) from Université des Sciences Sociales
Toulouse 1, France (incl. one term in Sydney,
Australia), and a Management Programme from HEC
Paris, France
Shares in Norske Skog ASA:
Owns and/or controls 0 shares
Synthetic options:
0
EVEN LUND
(1992)
Senior Vice President Corporate Finance
In Norske Skog since 2020
Professional experience:
Vice President Corporate Finance, Norske Skog
Investor Relations Manager, Norske Skog
Associate Corporate Finance, ABG Sundal Collier
Education:
Master of Financial Economics, Norwegian School of
Economics (Bergen, Norway)
Shares in Norske Skog ASA
:
Owns and/or controls 25
000 shares
Synthetic options:
176 000
Annual report 2025
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Norske Skog
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25
ABOUT NORSKE SKOG
Share information
INTRODUCTION
Norske Skog aims to provide long-term value growth and an attractive return
for its shareholders which exceeds that of relevant investment alternatives,
this ambition will be supported by a responsible capital allocation strategy and
a conservative capital structure. Norske Skog is listed on the Oslo Stock Exchange
where it trades under the ticker code NSKOG.
The Norske Skog corporate management and board of directors are committed
to serving all shareholders and potential new investors with consistent,
accessible, and immediate disclosure of relevant information through the
Oslo Stock Exchange, media, and financial newswires. Norske Skog has a
policy of equal treatment of all stakeholders to the group.
SHARES AND SHARE CAPITAL
On 31 December 2025, the share capital of Norske Skog was NOK 339
352 940,
consisting of 84
838 235
shares each with a par value of NOK 4.00
. All shares
have equal rights and are freely transferable.
The Norske Skog share price was NOK 16.96 on 30 December 2025, representing
a market value of approximately NOK 1
439 million. The return for 2025 was
negative NOK 7.54 or negative 30.8 percent
. The Oslo Stock Exchange
Benchmark Index (OSEBX) had a return of positive 18.4 percent in 2025
. For
Norske Skog, the highest share price in 2025, based on close-of-trading,
was NOK 26.88 on 26 February, and the lowest price was NOK 14.22 on
18 November. Norske Skog did not pay a dividend during the year.
VOLUME
In 2025, 58
484 512
Norske Skog shares were traded in the market, equivalent
to a turnover of NOK 1
206 million. The average daily trading volume was
233 938
shares.
DIVIDEND POLICY AND PROPOSAL
Norske Skog’s dividend policy is to pay dividends reflecting the underlying
earnings and cash flow while ensuring efficient capital allocation in the group.
When deciding the dividend level, the board of directors will among other
things take into consideration capital expenditure plans, financing requirements
and maintaining the appropriate strategic flexibility of the group.
Dividend payments are restricted under the group’s financing facilities of
maximum up to 50% of net profit for the previous financial year, subject to an
incurrence test, maximum leverage ratio of 1.50x following dividend payment,
being met.
The board of directors did not request the authority from the Annual General
Meeting in 2025 to pay a dividend for the financial year 2024.
The board of directors will propose to the annual general meeting that no
dividend is distributed for the financial year 2025.
LONG-TERM INCENTIVE PROGRAMME
The board of directors has approved a synthetic option programme for senior
executive employees in Norske Skog. By end of 2025, 2
094 000
synthetic
options had been awarded. The programme is described in the guidelines for
determining salary and other remuneration to leading personnel, which are
available on company’s website www.norskeskog.com.
FUNDING AND CREDIT QUALITY
Maintaining a strong financial position is considered an important risk
mitigating factor, supporting Norske Skog’s possibilities for strategic
development of its businesses. Access to external financial resources is
required to maximise value creation over time, balanced with acceptable risk
exposure. The financial covenants applicable to Norske Skog on a
consolidated basis are freely available and unrestricted cash and cash
equivalents of minimum NOK 100 million, EBITDA to net interest costs of
minimum 2.0:1, book equity to total assets of minimum 25%, and minimum
last twelve months (LTM) EBITDA of NOK 400 million. See Note 29 Interest-
bearing liabilities in the consolidated financial statements.
0.0
1.0
2.0
3.0
4.0
10
15
20
25
30
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Share price, NOK
Daily trading volume, million of shares
ABOUT NORSKE SKOG
26
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Norske Skog
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Annual report 2025
Photo: Carsten Dybevig
MAJOR SHAREHOLDERS AND VOTING RIGHTS
Geir Drangsland is the controlling shareholder of Investor AS. The company’s largest
shareholders, Byggma ASA and Drangsland Kapital AS are under common control of
Investor AS and the three companies holds 22
774 079
shares combined, corresponding
to a 26.84% ownership share
.
On 31 December 2025, the foreign ownership was 21.40%
. Based on the information
in the Norwegian Registry of Securities, Norske Skog had a total of 10
846 shareholders
on 31 December 2025 of which 166 resided outside of Norway.
SHAREHOLDING
INTERVAL
NO. OF
SHAREHOLDERS
NO. OF SHARES
% OF SHARE
CAPITAL
1 - 100
4 038
136 877
0.16
101 - 1
000
3 994
1 720 867
2.03
1 001
- 10
000
2 216
7 498 433
8.84
10 001
- 100
000
534
15 642 588
18.44
100 001
- 1
000 000
54
13 762 304
16.22
above 1
000 000
10
46 077 166
54.31
Total
10 846
84 838 235
100.00
SHAREHOLDER
CITIZENSHIP
NO. OF
SHAREHOLDERS
NO. OF SHARES
% OF SHARE
CAPITAL
Norway
10 680
66 681 773
78.60
Luxembourg
4
9 689 935
11.42
United States
9
2 826 326
3.33
Belgium
6
2 104 248
2.48
Sweden
32
1 743 081
2.05
United Kingdom
23
895 972
1.06
Denmark
23
353 587
0.42
Ireland
24
235 037
0.28
France
6
63 629
0.08
Cyprus
1
50 000
0.06
Finland
2
47 026
0.06
Switzerland
6
33 733
0.04
The Netherlands
2
27 505
0.03
Germany
11
24 812
0.03
Italy
3
22 900
0.03
Singapore
3
21 200
0.02
Spain
2
9 070
0.01
Australia
1
2 800
0.00
Iceland
1
1 600
0.00
Austria
1
1 390
0.00
Other
6
2 611
0.00
Total
10 846
84 838 235
100.00
Annual report 2025
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Norske Skog
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27
ABOUT NORSKE SKOG
Photo: Carsten Dybevig
2025 ANNUAL GENERAL MEETING
The Norske Skog Annual General Meeting for 2026 will be held on
Thursday 16 April 2026, at 13:00 CET. Shareholders who wish to attend are
asked to follow the instructions on the Notice of Annual General Meeting and
to inform the registrar by 16:00 CET on Tuesday 14 April
:
DNB Bank ASA
Registrar’s Department
P.O. Box 1600 Sentrum
N-0021 Oslo, Norway
You may also register electronically on our website www.norskeskog.com or via
VPS Investor Services. Any shareholder may appoint a proxy with written
authority to attend the meeting and vote on his or her behalf. The meeting will
be held online.
ANALYST COVERAGE
ANALYST
TELEPHONE
ABG Sundal Collier
+47 22 01 60 00
DNB Markets
+46 91 50 48 00
Pareto Securities
+47 22 87 87 00
Sparebank 1 Markets
+47 24 14 74 00
FINANCIAL CALENDAR
Norske Skog reserves the right to revise these dates.
26 March 2026:
Annual Report
16 April 2026:
Annual General Meeting
24 April 2026:
Quarterly Report - Q1
17 July 2026:
Quarterly Report - Q2
22 October 2026:
Quarterly Report - Q3
4 February 2027:
Quarterly Report - Q4
ABOUT NORSKE SKOG
28
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Annual report 2025
INFORMATION FROM NORSKE SKOG
Communicating with the stock market is given high priority, and Norske Skog
aims to maintain an open dialogue with market participants. Our objective is to
provide sufficient information on a timely basis to all market participants to
ensure a fair valuation of our shares. Information that is considered price sensitive
is communicated by news releases and stock exchange announcements. We host
regular meetings for investors, both in-person and virtually. All information about
Norske Skog is published on our website: www.norskeskog.com.
Our annual and quarterly reports are available on www.norskeskog.com.
Printed version of the annual and quarterly reports can be received at our
office at Sjølyst Plass 2, 0278 Oslo, Norway.
Three weeks before the announcement of quarterly results, Norske Skog
practices a “silent period”, meaning that contact with external analysts,
investors and journalists is limited. This is done to minimise the risk of
information leaks and potentially unequal information in the marketplace.
Share price
2019
2020
2021
2022
2023
2024
2025
Share price high (close-of-trading), NOK
43.99
44.00
43.00
75.70
75.80
43.42
26.88
Share price low (close-of-trading), NOK
37.00
24.10
29.30
37.30
39.06
18.55
14.22
Share price average (volume weighted average price), NOK
38.42
31.98
35.14
56.60
54.04
32.20
20.62
Share price year-end, NOK
43.70
38.70
38.40
67.25
41.40
24.50
16.96
Dividend paid per share, NOK
0.00
6.25
0.00
0.00
0.67
0.00
0.00
Market capitalisation year-end, NOK million
3 605
3 193
3 620
6 339
3 903
2 079
1 439
Volume (excluding off-market transactions and share repurchases)
Number of shares traded, million
10.68
38.05
90.99
125.23
148.67
81.49
58.48
Turnover, NOK million
427
1 217
3 186
6 951
8 130
2 624
1 206
Number of trades
12 359
68 834
166 577
267 136
265 213
133 016
75 213
Number of trading days
49
252
252
253
251
250
250
Average daily number of shares traded
217 995
150 983
361 074
494 995
592 319
325 969
233 938
Average daily turnover, NOK million
8.7
4.8
12.6
27.5
32.4
10.5
4.8
Average daily number of trades
252
273
661
1 056
1 057
532
301
Shareholders
Non-Norwegian ownership year-end,% share
15.74
9.70
27.89
30.20
17.01
21.49
21.40
Shareholding interval 1 - 100,% share
0.02
0.07
0.09
0.15
0.19
0.18
0.16
Shareholding interval 101 - 1
000,% share
0.64
1.41
1.62
1.76
2.59
2.42
2.03
Shareholding interval 1
001 - 10
000,% share
1.65
4.51
6.09
5.43
10.19
10.47
8.84
Shareholding interval 10
001 - 100
000,% share
3.63
6.29
9.11
9.28
15.77
17.63
18.44
Shareholding interval 100
001 - 1
000 000,%
share
19.75
9.28
24.27
24.52
17.79
19.51
16.22
Shareholding interval above 1
000 000,%
share
74.32
78.44
58.82
58.86
53.48
49.79
54.31
Top 5 shareholders,% share
71.77
72.02
42.21
45.77
42.11
42.62
44.52
Top 10 shareholders,% share
77.74
79.47
51.32
54.38
50.09
51.69
54.31
Top 15 shareholders,% share
82.50
83.20
57.73
59.92
55.13
55.28
57.97
Top 20 shareholders,% share
85.66
85.26
62.89
64.28
58.47
57.60
60.43
Top 25 shareholders,% share
88.14
86.63
66.91
67.70
61.16
59.48
62.29
Top 30 shareholders,% share
89.82
87.58
70.21
70.25
63.46
61.00
63.93
Number of shareholders
2 120
5 322
7 615
9 677
14 124
12 290
10 846
Outstanding shares year-end
82 500 000
82 500 000
94 264 705
94 264 705
94 264 705
84 838 235
84 838 235
Annual report 2025
I
Norske Skog
I
29
ABOUT NORSKE SKOG
REPORT OF THE BOARD OF DIRECTORS
Photo: Carsten Dybevig
Report of the
board of directors
Annual report 2025
I
Norske Skog
I
31
ABOUT NORSKE SKOG
Norske Skog is a leading producer of publication and packaging paper.
The company has publication paper production capacity of 1.2 million tonnes
across its four European manufacturing sites, comprising 0.8 million tonnes of
newsprint and 0.4 million tonnes of magazine paper
.
Norske Skog’s packaging paper production in Europe commenced in the first
quarter of 2023 at Norske Skog Bruck, which has a production capacity of
0.2 million tonnes
. Production at Norske Skog Golbey commenced in the
second quarter of 2025, and the machine is expected to reach full utilisation
in the first half of 2027. Once fully ramped up, the Bruck and Golbey mills will
jointly have a capacity of 0.8 million tonnes of recycled containerboard
.
STRATEGY
Norske Skog has adopted the following business strategy:
• Improve and optimise publication paper cash flows
• Become a leading and independent European producer of renewable
packaging paper
• Integrate vertically within the entire value chain
NORSKE SKOG IN 2025
Markets – publication paper
In 2025, demand for European publication paper continued its structural
decline of approximately 5-10% per year. Capacity closures within the industry
have helped rebalance supply and demand for certain paper grades, while
others continue to experience low capacity utilisation. On average, product
prices remained stable compared to year-end 2024. The cost of raw materials,
both pulpwood and recovered paper, have been relatively stable while energy
costs decreased during 2025.
In 2025 the annual demand for standard newsprint in Europe decreased by 8%
compared to previous year. For magazine paper the demand decreased by 9%,
with supercalendered paper decreasing 11% and lightweight coated paper
decreasing 8% compared to previous year. (Source: Euro-Graph).
Markets - containerboard
The Western European recycled containerboard consumption was approxi-
mately 20 million tonnes in 2025. Unlike the publication paper markets, the
packaging market experienced an increase in both demand and capacity
during the year. The industry capacity utilisation decreased slightly and is still
below historical averages, which puts pressure on the profit margins for
producers. The prices for recycled containerboard were slightly lower in 2025
compared to 2024, albeit with limited effect on profit margins as prices for raw
materials, in particular recycled fibre, also decreased.
Norske Skog Golbey PM1 started production and deliveries of recycled
containerboard in May 2025 and is expected to reach full utilisation in the first
half of 2027. Norske Skog Bruck PM3 continued to increase the production
and deliveries of recycled containerboard in 2025 and the volume is expected
continue to increase in 2026. Once fully ramped up the machines will have a
total capacity of 760
000 tonnes of cost-competitive recycled containerboard.
The recycled containerboard production will be fully based on recycled fibre
and will utilise green energy generated from the new waste-to-energy facility
at the Bruck industrial site and a new biomass plant at the Golbey industrial
site. Reliable access to affordable sources of green energy will be crucial for
the long-term competitiveness at Norske Skog Bruck and Norske Skog Golbey.
Annual demand for recycled containerboard in Europe increased by 1.3% in
2025 while the capacity increased by 1.5%
. (Source: Fastmarkets RISI).
INCOME STATEMENT 2025 (2024)
Norske Skog’s operating income was NOK 10.5 billion (NOK 10.2 billion)
. The
increase was mainly due to higher volumes, partly offset by mix effects with a
higher share of recycled containerboard reducing average selling prices. In
other
operating
income
insurance
proceeds
were
recognised
with
NOK 560 million (NOK 458 million) related to the rockslide in 2023 on the
Norske Skog Saugbrugs industrial site.
Distribution costs of NOK 1.0 billion (NOK 1.0 billion) were at the same level
as the previous year and slightly down on a per tonne basis. Cost of materials
of NOK 6.2 billion (NOK 5.9 billion) increased due to higher volumes and
higher pulpwood prices, while energy and recycled fibre prices decreased
during the year.
Employee benefit expenses of NOK 1.6 billion (NOK 1.7 billion) decreased
year-on-year because of a reduction in the number of employees and reduced
bonuses. Other operating expenses of NOK 827 million (NOK 803 million)
show a slight increase, mainly as a result of starting the containerboard
production at Norske Skog Golbey PM1.
EBITDA increased to NOK 769 million (NOK 736 million) and is still impacted
by the challenging operating environment in Europe both for publication
paper and packaging paper.
Restructuring expenses in 2025 amounted to NOK 5 million (NOK 16 million)
where prior year was impacted by demanning at Norske Skog Saugbrugs.
Depreciation was NOK 557 million (NOK 481 million), an increase as a result
of the completion and start of depreciation on the containerboard assets in
Norske Skog Golbey. No impairment was recognised in 2025 while an
impairment of NOK 121 million was recognised prior year in relation to assets
at Norske Skog Saugbrugs.
Derivatives and other fair value adjustments ended at positive NOK 356 million
(negative NOK 178 million) reflecting the impact of the change in fair value of
energy contracts in Norway.
Operating earnings ended at NOK 563 million (negative NOK 60 million). The
change primarily reflects positive impact from derivatives and other fair value
adjustments and higher other revenue from insurance compensation.
Net financial items in 2025 were NOK -209 million (NOK -441 million). Net
interest expenses of NOK 202 million (NOK 128 million) was above previous
year reflecting increased net debt. Currency gain of NOK 77 million (loss of
NOK 175 million) is due realised and unrealised gains currency derivatives.
Income taxes for 2025 amounted to NOK 88 million (NOK -94 million)
REPORT OF THE BOARD OF DIRECTORS
32
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Norske Skog
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Annual report 2025
reflecting lower deferred tax liabilities. Profit for the year was NOK 442 million
(negative NOK 661 million).
CASH FLOW 2025 (2024)
Net cash flow from operating activities ended at NOK 227 million (negative
NOK 15 million). Cash from operations was NOK 466 million (NOK 200 million)
an increase primarily resulting from lower working capital with higher trade
and other payables. Taxes paid was NOK 9 million (negative NOK 1 million).
Net cash flow from investing activities of NOK 328 million (NOK 1.2 billion)
mainly reflects purchases of plant and equipment related to the conversion of
Norske Skog Golbey PM1 into recycled containerboard, partly offset by the
proceeds from the insurance settlement at Norske Skog Saugbrugs.
Net cash flow from financing activities of NOK 27 million (negative NOK 105
million) includes new bank loans raised at Norske Skog Skogn and
Norske Skog Golbey, offset by debt repayments mainly at Norske Skog Golbey
and Norske Skog Bruck.
Publication paper
Operating income was NOK 8.9 billion (NOK 9.2 billion) a decrease from the
previous year due to lower volumes, lower publication paper prices and less
sale of excess energy, partly offset by higher revenue from insurance
compensation. Insurance compensation was recognised with NOK 560 million
(NOK 458 million) related to the rockslide in Norske Skog Saugbrugs in
April 2023.
Distribution costs of NOK 886 million (NOK 904 million) decreased on an
absolute basis and on the same level on a per tonne basis. Cost of materials of
NOK 5.0 billion (NOK 5.3 billion) decreased due to lower energy costs, partly
offset by increased costs of pulpwood on an absolute and per tonne basis.
Employee benefit expenses of NOK 1.2 billion (NOK 1.4 billion) decreased an
absolute and on a per ton basis because of a reduction in the number of
employees in addition to some employee benefit expenses being allocated to
the containerboard segment at Norske Skog Golbey. Other operating expenses
of NOK 640 million (NOK 773 million) decreased due to cost saving initiatives
resulting in lower consulting, maintenance and other fixed costs.
Operating earnings ended at NOK 1.1 billion (NOK 112 million)
. The change
primarily reflects positive impact from derivatives and other fair value
adjustments.
Net cash flow from operating activities ended at NOK 836 million in 2025
(NOK 228 million).
Packaging paper
Total operating income of NOK 1.2 billion (NOK 851 million) reflects the start
of production of recycled containerboard at Norske Skog Golbey PM1 in
addition to increased deliveries from Norske Skog Bruck PM3.
Distribution costs of NOK 150 million (NOK 101 million) increased on an
absolute level due to higher volumes but decreased on a per tonne basis
compared to prior year. Cost of materials of NOK 888 million (NOK 527 million)
increased on an absolute and per tonne basis as a result low efficiency in the
months after start-up of PM1 at Norske Skog Golbey. Employee benefit expenses
of NOK 312 million (NOK 156 million) increased on an absolute and per tonne
level also driven by the PM1 start-up. Other operating expenses of
NOK 201 million (NOK 61 million) increased for the packaging paper segment
but decreased slightly on a per tonne level for Norske Skog Bruck PM3.
Operating earnings ended at NOK -525 million (NOK -113 million) with an
improvement for Norske Skog Bruck from prior year.
Discontinued operations
The segment Publication paper Australasia was discontinued in 2024
following the initiation of a concrete sales process in December 2024. The
segment consisted of Norske Skog Boyer’s publication paper operations in
Australasia. On 7 February 2025 an agreement to sell Norske Skog Industries
Australia Ltd with subsidiaries was signed and the entities were sold with
effect from 1 April 2026.
BALANCE SHEET 31 DECEMBER 2025 (31 DECEMBER 2024)
Total assets were NOK 14.7 billion (NOK 14.5 billion) while total non-current
assets were NOK 10.6 billion (NOK 10.0 billion)
. The increase is mainly related
to investments in connection with the conversion to recycled containerboard
at Norske Skog Golbey. Investments in maintenance of property, plant and
equipment (maintenance capex) amounted to NOK 187 million (NOK 219 million).
The group recognised a deferred tax asset of NOK 134 million (NOK 111 million).
Total current assets were NOK 4.1 billion (NOK 4.4 billion including assets held
for sale), with cash and cash equivalents of NOK 1.1 billion (NOK 1.1 billion)
.
Trade receivables increased in part as a result of the start of deliveries of
recycled containerboard from Norske Skog Golbey.
Total non-current liabilities were NOK 5.3 billion (NOK 5.5 billion)
. Total
current liabilities were NOK 3.6 billion (NOK 3.6 billion including liabilities
relating to assets classified as held for sale). Excluding the effect of
discontinued operations in 2024, the increase relates to higher trade and
other payables resulting from improved payment terms and an increase in
interest-bearing current liabilities.
Net interest-bearing debt of NOK 4.3 billion (NOK 4.1 billion) increased due to
an increase in interest-bearing liabilities in part resulting from currency effects
on Euro denominated debt at Norske Skog Golbey and Norske Skog Bruck.
Equity was NOK 5.8 billion at 31 December 2025 (NOK 5.4 billion)
. The
increase reflects the profit for 2025.
RISK MANAGEMENT
The main exposures for the group are linked to demand development in key
paper grades within publication paper and packaging paper and capacity
management by the suppliers and thereby impacting prices. Prices for
publication paper and packaging paper relative to production cost is the most
important factor for the profitability in the industry. Negative demand
development and lack of or insufficient capacity management in the industry
could result in pressure on prices and profitability.
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The group Is also exposed to movements in the prices of key input factors
such as energy, recovered paper, wood and chemicals. During 2025 costs of
certain raw materials has been high compared to previous years. Thus, efforts
to continue to improve efficiencies and develop purchasing strategies and
having a contract structure that matches production are key to mitigate these
risk factors and reduce the impact on the group’s profitability.
Norske Skog is not vertically integrated into forest resources and must
therefore source wood from third parties. The supply of wood is to a certain
extent covered by medium to long-term contracts which reduce cost exposure
and increase supply certainty. For the remaining part the price development of
wood is linked to the activity in the pulp and paper sector with lower activity
and pricing giving lower cost and opposite when activity is high.
The group’s revenues and costs are partly hedged operationally from a
currency point of view; providing some risk reduction but significant
movements, particularly of NOK vs GBP, USD and EUR, pose a financial risk for
the group.
Norske Skog’s operations are predominantly production of publication paper,
but with increasing exposure to packaging paper. The demand for publication
paper will likely continue to decrease and the market balance is over time
dependent on future closures of production capacity either permanently or
through conversions to other paper grades. Exposure to both newsprint and
magazine paper grades give some product diversification for the publication
paper segment, while the gradual increase of containerboard production will
provide further product diversification into the growing recycled container-
board market.
Financial risk management includes currency and liquidity planning. Currency
volatility is to a certain extent mitigated by natural hedging where income and
expenses are matched in the same currency, but the group may also enter into
currency contracts to hedge currency risk. Norske Skog has loans
predominantly denominated in EUR, matching cash flows from the EUR based
European market. Liquidity is ensured by maintaining sufficient cash balances
and open credit lines linked to trade receivables facilities. Norske Skog
continuously assesses the most competitive funding sources for the group.
Norske Skog performs credit evaluations of counterparties. The group’s
insurance programme covers property damage, business interruption, product
and environmental liability, crime and cyber and is managed centrally through
a well-established insurance programme.
Norske Skog ASA has a directors and officers liability insurance for the parent
company and its subsidiaries. The insurance covers defence costs and
potential legal liability for directors and officers arising out of claims made
against them while serving on a board of directors and or as an officer. The
insurance renews annually, and the sum insured was USD 50 million at
31 December 2025.
Risk factors are further discussed in Note 5 Financial Risk in the consolidated
financial statements.
CORPORATE GOVERNANCE
Norske Skog considers good corporate governance to be a prerequisite for
value creation, trustworthiness, and access to capital. Norske Skog believes
that good corporate governance involves openness, honesty and cooperation
between all parties involved in and with the group: the shareholders, the board
of directors and executive management, employees, customers, suppliers,
public authorities, and society in general.
To secure strong corporate governance and value creation in a sustainable
manner, it is important that Norske Skog ensures good and healthy business
practices, reliable financial reporting and an environment of compliance with
legislation and regulations across the group.
Norske Skog has governance documents setting out principles for how
business shall be conducted. These apply to all group entities. The Norske
Skog governance regime is approved by the board of directors of Norske
Skog. Further details are described in the corporate governance section in the
annual report and on www.norskeskog.com.
TRANSPARENCY
In June 2021 the Norwegian Parliament passed the Transparency Act (In
Norwegian: “Åpenhetsloven”), which entered into force on 1 July 2022. The
purpose is to promote companies’ respect for fundamental human rights and
decent working conditions in connection with the production of goods and
services, and to ensure the general public access to information on how
companies handle negative consequences on fundamental human rights and
decent working conditions.
The act applies to large enterprises that are domiciled in Norway, which offer
goods and services inside or outside Norway. Norske Skog complies with the
obligations under the scope of this act and further information is disclosed on
www.norskeskog.com.
RESEARCH AND DEVELOPMENT
Norske Skog’s research and development work is performed at the individual
business units and in cooperation with other external companies and/or
external research institutions. There is a continued focus on evolution of
paper products and new innovative green alternatives to replace existing
materials and substances that often are based on petrochemical products.
Investments into projects for alternative use of fibre and development of bio-
chemicals are being made in the form of pilot or demonstration plants that, if
successful, can contribute to growth when commercialised.
Norske Skog has developed bio-based products at Norske Skog Saugbrugs, in
Halden, with particular focus on nanocellulose (CEBINA). Significant progress
has been made over the last years and Norske Skog have realised both
commercial sales and found internal appications for the product, enabling
improved paper quality and cost reductions.
At Norske Skog Skogn, 2025 has been a year where the mill has continued the
efforts within incremental product and process development. An investment
decision into production of wood containing book paper was made to become
a stable and competitive supplier into the European book paper market.
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Further development of the TMP process to increase energy efficiency and
pulp properties has been carried out by own competent personnel and
research partners supported by the Norwegian Research Counsil. This has
resulted in the investment decision into the first stage of the Pulpflex project
supported by Enova to provide grid support services.
GOING CONCERN
In accordance with the provisions in the Norwegian Accounting Act, the board
of directors has assessed the going concern assumption as basis for preparing
and presenting the financial statements. At 31 December 2025, the equity of
the company is NOK 5.8 billion giving an equity ratio of approximately 40%
.
Based on the results for the company and group for 2025, the solidity and
available liquidity, the board of directors confirms that the assumption applies
and that the financial statements have been prepared on a going concern
basis.
OUTLOOK FOR 2026
The development in the global economy is important for consumer spending,
and this impacts the publication paper and packaging paper industry, and
thus Norske Skog’s operations and results. Norske Skog have maintained the
deliveries of publication paper on the same level as prior year, resulting in a
higher market share in the European publication paper market. The deliveries
of containerboard increased in 2025 and is expected to continue to increase
in the coming two years as PM1 at Norske Skog Golbey is approaching full
utilisation.
The raw material and energy markets, which are important for both publication
paper and packaging paper production, are expected to remain uncertain and
volatile. Energy prices decreased in 2025 but are still on a high level compared
to historical averages. Cost of pulpwood has increased, but the prices in the
Nordics have come down significantly from year-end 2025 and the decline is
expected to continue going into second half of 2026. Recycled paper prices
are on average expected to remain on similar levels in 2026 as in 2025.
The level of input costs and demand for paper will continue to influence paper
sales prices in Europe. Both publication and packaging paper markets see some
excess capacity, and capacity reductions are required to tighten the markets.
Industry utilisation is expected to remain below the historical average until
capacity is reduced. Norske Skog is able to maintain a higher utilisation rate than
the industry average, due to the competitive cost position of the mills.
The production of recycled containerboard at Norske Skog Golbey PM1 is
expected to increase in line with plan over the coming quarters. The EBITDA
from the packaging paper segment is expected to gradually improve as the
deliveries and production efficiency of PM1 improves as the machine ramps-
up. Full utilisation of Norske Skog Golbey PM1 is expected to be reached in
the first half of 2027.
At Norske Skog Saugbrugs studies are ongoing regarding a potential restart
of PM6. The focus of the studies is a potential rebuild of the machine which
will enable both SC magazine paper and TMP based kraftliner production. The
studies regarding a PM6 rebuild and restart is expected to conclude during
the second quarter of 2026. The final investment decision for the bleached
chemi-thermomechanical pulp (BCTMP) line have been put on hold due to
high investment costs and deteriorating market conditions.
Norske Skog continues to monitor its financial position closely and has several
ongoing initiatives to secure its liquidity and financial performance going
forward. There is also a clear emphasis on reducing production cost and
working capital to improve the group’s competitive position and cash flow
from operations.
Norske Skog will continue to develop its industrial sites with new fibre projects
based on efficient use of certified fibre and renewable energy, both on a stand-
alone basis and in partnerships.
THE PARENT COMPANY - NORSKE SKOG ASA
The parent company, Norske Skog ASA, is incorporated in Norway and has its
head office at Skøyen in Oslo. The activities of Norske Skog ASA consist of
holding shares in the operating companies and conducting the head office
functions of the Norske Skog group. On 31 December 2025 the company had
20 employees.
INCOME STATEMENT AND CASH FLOW 2025 (2024)
Operating revenue NOK 92 million (NOK 90 million) is primarily from the
services provided within the group. Employee benefit expenses NOK 50 million
(NOK 70 million), a decrease of NOK 20 million, mainly due to demanning and
high pension expense in 2024 due to corrections of prior periods. Other
operating expenses NOK 73 million (NOK 62 million) are related to the head
office functions and IT cost.
Total financial items amounted to NOK 176 million (NOK -154 million)
reflecting dividends of NOK 225 million received from subsidiaries (NOK 875
million), currency gain of NOK 77 million (loss of NOK 174 million) and net
interest and other financial expenses of NOK 118 million (NOK 230 million).
Income taxes NOK 2 million (NOK -145 million) relates to change in deferred
tax assets recognised. Profit for the year was NOK 137 million in 2025 (loss of
NOK 432 million).
Net cash flow from operating activities was negative NOK 46 million (NOK
-200 million) with net interest payments of NOK 84 million
(NOK 88 million).
Net cash flow from investing activities was negative NOK 963 million
(NOK -175 million) with the decrease reflecting increased share capital in
Norske Skog Bruck GmbH and Norske Skog Golbey SAS and higher receivables.
Net cash flow from financing activities was NOK 1
077 million (negative NOK
481 million) reflecting an increase in payables.
BALANCE SHEET 31 DECEMBER 2025 (31 DECEMBER 2024)
Total assets were NOK 7.4 billion (NOK 6.4 billion)
. Total non-current assets
were NOK 5.0 billion (NOK 4.7 billion) an increase due to equity contributions
in Norske Skog Bruck GmbH and Norske Skog Golbey SAS. Total current
assets were NOK 2.3 billion (NOK 1.7 billion) an increase primarily due to
higher intercompany receivables.
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Total non-current liabilities were NOK 1.4 billion (NOK 1.4 billion) while
current liabilities increased to NOK 1.8 billion (NOK 1.0 billion) due to higher
intercompany payables. Equity was NOK 4
.2 billion (NOK 4.1 billion)
. The
increase in equity is due to the profit for the year.
HEALTH AND SAFETY
Lost-time injuries per million working hours, was 0 in 2025 (0) in Norske Skog
ASA. The company had an absence rate due to sickness of 0
.8% in 2025
(1.4%)
.
RISK MANAGEMENT
The risk factors described for the group are also relevant for the parent
company. Furthermore, Norske Skog ASA is also exposed to the risks of
funding from the cash generating operations not being available for the
company when required, whether by way of intragroup loans or other capital
transactions such as dividend payments.
On 31 December 2025 the total number of shareholders was 10
846 (12
290).
PROFIT/LOSS ALLOCATION
The profit for the year for Norske Skog ASA (the parent company) was
NOK 137 million (loss NOK 432 million). The profit for the year was allocated
to retained earnings.
DIVIDEND PROPOSAL
The board of directors will propose to the annual general meeting that no
dividend is distributed for the financial year 2025.
SKØYEN, 25 MARCH
2026
THE BOARD OF DIRECTORS OF NORSKE SKOG ASA
Arvid Grundekjøn
Chair
Trude Ulven
Board member
Eva Karlson Berg
Board member
Geir Drangsland
CEO
Terje Sagbakken
Board member
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Sustainability
statement
Photo: Carsten Dybevig
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ENVIRONMENT
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Norske Skog Golbey
Photo: Carsten Dybevig
General disclosures
(ESRS)
1. Basis for preparation
Our sustainability statement has been prepared on a consolidated basis,
aligning with the scope of the financial report for 2025. This report is our
mandatory annual statutory sustainability reporting in accordance with the
Corporate Sustainability Reporting Directive (CSRD) is (EU 2022/2464) and
Article 8 of Regulation (EU) 2020/852 (EU Taxonomy Regulation).
The scope of our sustainability statement mirrors that of our financial
statements, ensuring consistency and comprehensive coverage of our
operations and activities. Our sustainability statement covers our own
operations, and both upstream and downstream aspects of our value chain,
encompassing suppliers, production processes, distribution, product use, and
end-of-life considerations.
The information presented in the sustainability statement is a result of the
double materiality assessment (DMA). For a detailed description of the scope,
methodology and assumptions of our DMA process, see section 4 on impacts
risks and opportunity management in this chapter. The Sustainability
statement follows the categorisation of short-, medium- and long-term time
horizons as defined in ESRS 1, section 6.4
.
No information corresponding to intellectual property, know-how or the
results of innovation has been omitted from the sustainability statement.
CHANGES IN THE PREPARATION OR PRESENTATION OF
SUSTAINABILITY INFORMATION
Norske Skog aligned its sustainability reporting structure in line with the
adaptation to the CSRD and the ESRS in 2024, and this revised structure has
been maintained for 2025. Modifications in 2025 include consolidation of
some IROs because their underlying impacts were driven by closely related
causes. See section 4 in this chapter for specific details.
SOURCES OF ESTIMATION AND OUTCOME UNCERTAINTY
The assessment of future impacts, risks and opportunities are by nature
subject to estimations and outcome uncertainty. In line with ESRS requirements,
the
sustainability
statement
include
forward-looking
statements
and
assessment of the impact of climate change on Norske Skog performance in
the short-, medium- and long-term. These forward-looking judgments relate to
potential future events that are beyond the control of Norske Skog and
difficult to predict.
THIRD PARTY VERIFICATION
All of Norske Skog’s business units are certified in accordance with ISO 9001
(Quality Management Systems). All other third-party verification is handled in
the respective sections.
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2. Governance
Responsibility allocation in governing bodies for environmental policy and sustainability
BOARD OF DIRECTORS
The board of directors holds the overarching responsibility for Norske Skog’s
environmental policy and sustainability strategy. This includes:
•
Defining and annually reviewing environmental policies, goals, and strategic
priorities.
•
Ensuring that environmental and sustainability aspects are fully integrated
into the company’s overall strategy.
•
Receiving regular reports on environmental performance, including green-
house gas emissions, energy efficiency, circular economy, and biodiversity.
• Ensuring compliance with international agreements such as the Paris
Agreement and the Montreal Protocol.
• Evaluating and approving investments and projects with significant
environmental impact.
•
Delegating specific tasks related to environment and sustainability to the
audit committee and corporate management.
•
Ensuring that relevant sustainability competence exists in the audit committee
and corporate management.
AUDIT COMMITTEE
The audit committee, led by the board chair, functions as a supervisory body
for the company’s environmental risks, reporting, and governance. Its
responsibilities include:
• Monitoring environmental risks and opportunities, as well as assessing
related financial implications.
•
Ensuring that sustainability reporting aligns with European and international
standards, including ESRS.
• Reviewing and approving procedures for environmental and sustainability
reporting.
• Reporting to the board on identified environmental risks, compliance, and
areas for improvement including oversight of impacts, risks and opportunities.
CORPORATE MANAGEMENT
Corporate management is operationally responsible for implementing the
board’s environmental strategy and ensuring that environmental considera-
tions are integrated into daily operations. This includes:
•
Identifying, evaluating, and managing environmental risks and opportunities
at the corporate and business unit levels.
•
Establishing specific goals and strategies for emissions reduction, renewable
energy, circular economy, and natural resource management.
• Ensuring that business units have the necessary resources, training, and
tools to effectively implement the environmental policy.
•
Reporting to the board and audit committee on environmental performance
and continuous improvement measures.
HEAD OF SUSTAINABILITY
The head of sustainability plays a key role in coordinating and overseeing the
company’s sustainability initiatives. Main responsibilities include:
• Developing and implementing the corporate sustainability strategy in
collaboration with corporate management.
• Ensuring that sustainability goals align with international regulations and
best practices.
•
Leading internal training programmes and ensuring sustainability principles
are understood and followed throughout the organisation.
• Coordinating sustainability reporting and working closely with the audit
committee to ensure accurate and transparent reporting.
•
Engaging in stakeholder dialogue, including with authorities, investors, and
customers, to promote Norske Skog’s environmental and social responsibility.
BUSINESS UNITS
The business units are responsible for the practical implementation of
environmental initiatives in their respective operations. This includes:
• Integrating environmental considerations into daily operations, including
energy efficiency, resource use, pollution control, and waste management.
• Implementing corporate management’s strategies and goals at the local
level.
• Ensuring that employees are trained in environmental and sustainability
principles and have the necessary competence to perform their work in line
with company requirements.
• Reporting any serious environmental deviations immediately to corporate
management and regularly reporting progress on environmental goals.
• Ensuring that suppliers and partners comply with Norske Skog’s environ-
mental standards and sustainability requirements.
COMPETENCE AND EXPERTISE IN GOVERNING BODIES
The various governing bodies of Norske Skog possess broad competence in
sustainability, risk management, and environmental governance. Specific
areas of expertise include:
•
Board of directors: Experience in technology, sustainability, forestry, finance,
and global markets. The board of directors consists of 5 non-executive,
independent members and two employee observers. The board has 40%
female representation.
•
Audit committee: Expertise in risk assessment, compliance, and sustainability
reporting.
• Corporate management: Operational management of environmental and
sustainability strategies. The corporate management consists of 5 male
members, where the CEO is not independent. Corporate management has
0% female representation.
• Head of sustainability: Specialised knowledge in climate risk, circular
economy, and environmental standards.
• Business units: Practical experience in implementing sustainability goals
within production and the value chain. Expertise in operational management,
strategy, sustainability, finance, accounting, legal, commercial, broad
industrial background from fibre processing.
Through clear responsibility allocation, Norske Skog ensures that its
environmental policy is embedded throughout the organisation from strategic
governance to operational execution, continuously improving environmental
performance in alignment with global sustainability goals.
In addition to its financial reporting, audit, internal controls and compliance
responsibilities, the audit committee has delegated responsibility for
overseeing all matters relating to business conduct. As required with reference
to the guidelines that at least one member of the audit committee has recent
and relevant audit, legal or compliance expertise to enable it to discharge
these responsibilities effectively.
Material impacts, risks, and opportunities are reported to the corporate
management, and audit committee through regular updates provided by the
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head of sustainability. Reporting occurs quarterly during audit committee
meetings ensuring continuous oversight. The corporate management, and
audit committee evaluate the implementation of due diligence, effectiveness
of policies, and the outcomes of actions, metrics, and targets adopted. Reviews
are conducted annually, with special sessions convened when significant
changes occur or when new risks emerge.
Impacts, risks, and opportunities are integrated into the governing bodies’
discussions on the business’s strategy, major transactions, and risk
management processes. Our acquisition strategy requires the consideration
of sustainability matters such as health & safety and locked-in emissions in
our due diligence process when acquiring other businesses. These
considerations involve comprehensive analyses that weigh trade-offs
associated with various impacts, risks, and opportunities to make informed
decisions aligned with sustainability objectives.
Throughout the year, the corporate management and business unit
management consistently monitor various impacts, risks, and opportunities.
To guarantee effective performance monitoring, the corporate management
addresses key targets relevant to our business in relevant board meeting.
Climate-related risks and our efforts towards decarbonisation and achieving
net zero emission goals in scope 1 and 2 are monitored and reviewed when
necessary, by the governance bodies (for additional details, see the
Environment section). Similarly, health and safety risks are a routine topic of
discussion at the board meetings (refer to the Social section on for more
information).
Compensation scheme including sustainability-linked remuneration:
All performance contracts, for corporate management, mill directors and all
other personnel with performance contracts, include sustainability goals that
cover environmental, health, and safety issues. The performance is assessed
on a general basis and is not assessed against specific targets.
The proportion of the variable remuneration is 2.5% of the total performance
contract score. The board of directors approves the level and content of the
performance contracts.
Core elements of due diligence
Location in the sustainability statement
1.
Embedding responsible business conduct into policies and management systems
ESRS 2:
Risk management and internal controls
S1, E1, E2, E3, E4, E5:
Policies
ESRS G1:
Business Conduct
2.
Engaging with affected stakeholders
Chapter ESRS 2:
Stakeholders
S1, E1, E2, E3, E4, E5:
Polices
G1:
Business Conduct
3.
Identify and asess adverse impacts
ESRS 2:
Description of the process to identify and assess
material climate-related IRO’s
4.
Action to reduce negative impacts and track results
S1, E1, E2, E3, E4, E5:
Actions and resources
G1:
Promoting a culture of integrity
5.
Track progress and communicate with affected stakeholders
S1, E1, E2, E3, E4, E5:
Metrics and targets
G1:
Promoting a culture of integrity
Due Diligence
Norske Skog conducts due diligence in line with OECD Guidelines for
Multinational Enterprises on Responsible Business Conduct, with relevant
guidance material, and the UN Guiding Principles on Business and Human
Rights. Due diligence is integrated into business processes at different levels
in the organisation. The related table provides an overview of where in the
sustainability statement information on due diligence can be found under
each material topic.
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Risk management and internal controls over sustainability reporting
HEAD OF SUSTAINABILITY – RESPONSIBILITIES AND REPORTING
STRUCTURE
The head of sustainability is responsible for facilitating and developing
comprehensive group reports on sustainability issues and ESG metrics. This
responsibility includes organising and leading essential activities such as the
consolidated Disclosure on Management Approach (DMA), evaluating climate
risks, and managing data collection and conversion processes for sustainability
reporting.
DATA COLLECTION AND REPORTING STRUCTURE
The gathering of relevant data and information for the annual sustainability
report is a continuous process that involves multiple data sources and
reporting levels within the organisation. Data is collected at the business units
(mills) through:
• Measuring instruments:
o Automated and manual sensors monitor emissions, energy consumption,
water usage, and other key environmental parameters at each mill.
• Physical counts or measurements:
o Manual inspections and physical assessments verify waste management,
raw material usage, and safety compliance.
• Incident reports:
o Every work-related accident or serious injury is reported immediately to
the relevant leader and business unit management. Within 24 hours, the
report is escalated to: Corporate management, head of sustainability and
VP communication.
o Incidents related to breach of environmental permits or hazardous waste
is reported to proper authority without delay and to corporate
management, head of sustainability and VP communication.
Each mill has designated Health, Safety, and Environmental (HSEQ) managers
responsible for sustainability-related matters. Their key responsibilities include:
• Ensuring compliance with sustainability policies through regular follow-up
and reporting.
• Providing sustainability competence and quality assurance at the mill or
business unit level.
•
Overseeing monthly reporting of health, safety, and environmental data to
business unit management.
• Participating in monthly business review meetings with corporate
management to discuss performance and compliance.
STANDARDISED DATA FRAMEWORK AND RISK MANAGEMENT
A key challenge in creating unified sustainability disclosures across multiple
business units is mitigating human errors and data misalignment. To address
this, the head of sustainability oversees a unified data framework for the entire
group, ensuring:
•
Standardised definitions and calculations for emissions, waste, and energy
metrics.
• Compliance with the GHG Protocol through accurate emission factor
assessments.
•
A systematic risk prioritisation methodology to enhance data integrity and
reliability.
•
Centralised quality assurance, where the head of sustainability functions as
an information hub, identifying and rectifying inconsistencies in data
submitted by business units.
INTEGRATION OF A SUSTAINABILITY REPORTING TOOL
To further enhance data management and reporting, Norske Skog implemented
a specialised sustainability reporting tool in 2024. This tool is designed to:
•
Structure sustainability data for accurate and efficient reporting.
•
Monitor adherence to reporting standards.
•
Support real-time tracking of environmental performance indicators.
Initial configuration of the tool for manual data entry commenced at the end of
2024, with complete adherence in 2025, including the integration of supplier-
specific Scope 3 data for a more comprehensive sustainability assessment.
ALIGNMENT WITH ESRS AND GOVERNANCE REPORTING
As of 2025, all sustainability data follows the accounting principles outlined
by the European Sustainability Reporting Standards (ESRS). The head of
sustainability plays a pivotal role in ensuring compliance and regularly informs
the CEO and CFO about the progress of sustainability reporting. The CEO and
CFO, in turn, provide updates to the board of directors, ensuring that
sustainability efforts align with Norske Skog’s long-term strategic goals.
Through this structured approach, Norske Skog ensures high-quality,
transparent sustainability reporting that supports informed decision-making
and regulatory compliance.
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3. Strategy, stakeholders, material impacts, risks and opportunities
(IRO)
KEY ELEMENTS OF GENERAL STRATEGY
• Products: Norske Skog produces publication paper, recycled packaging
paper, energy, and bioproducts. In 2025, the group expanded the capacity
of recycled containerboard production with the commissioning of a new
machine at Norske Skog Golbey.
• Markets: Norske Skog serves publication paper customers across Europe,
North America and Asia. The new packaging paper segment primarily
targets the European market. Key customer groups include publishers,
retailers, and commercial printers.
•
Employee headcount: The group employs 1
674 people, with 1
652 FTEs
allocated as follows:
o Publication paper: 1
100–1 350
o Packaging paper: 300–500 (expected to rise with full-scale production)
o Bioproducts: <50
• Banned products: Norske Skog does not produce or distribute products
banned in any markets.
SUSTAINABILITY-RELATED GOALS
• Publication paper: Improve and optimise resource efficiency, reducing
emissions and energy use.
• Packaging paper: Establish a leading position as an independent recycled
containerboard producer.
• Vertical integration: Explore up- and downstream synergies to enhance
sustainability and operational efficiency.
ASSESSMENT OF CURRENT MARKETS AND PRODUCTS
• Publication paper remains core, but the shift towards packaging paper
diversifies revenue streams and reduces dependency on declining print
markets.
Our sustainability initiatives are embedded in the main strategy:
• Optimising publication paper cash flows – improving resource efficiency
and environmental compliance.
• Becoming a leading producer of renewable packaging paper – expanding
sustainable packaging solutions.
• Vertical integration in the value chain – strengthening supply chain
sustainability and traceability.
KEY SUSTAINABILITY COMMITMENTS
•
55% reduction in GHG emissions across scope 1 and 2 per tonne produced
by 2030, compared with a 2015 baseline. And net zero emissions by 2050,
across the same scopes.
•
- 25% reduction in Scope 3 emissions by 2030 compared to 2022
•
Zero ash to landfill by 2030.
• 100% certified wood sourcing.
KEY SUSTAINABILITY CHALLENGES AND SOLUTIONS
1. Climate change and energy efficiency – Investing in renewable energy,
efficiency projects, and process optimisation.
2. Circular economy and waste management – Expanding the use of certified
wood and recycled paper, optimising fibre utilisation, and minimising waste.
3. Water resource management – Enhancing wastewater treatment and
adopting water recycling technologies.
4. Sustainable packaging production – Ramping up recycled containerboard
production to full capacity within 2027 at Norske Skog Golbey and Norske
Skog Bruck to meet the demand for renewable and non-plastic packaging
solutions.
5. Employee health and safety – Continuous training, risk assessments, and
advanced workplace safety measures.
Our operations span the entire value chain, from responsible raw material
sourcing to advanced manufacturing and distribution, ensuring high-quality
products for customers while minimising environmental impact.
INPUTS: RESPONSIBLE SOURCING AND RESOURCE MANAGEMENT
Our primary inputs include certified wood, recycled fibre, energy, and water.
We source wood and wood chips exclusively from certified sustainable
forestry operations (FSC® and PEFC™), ensuring traceability and environ-
mental responsibility. Recycled fibre plays a vital role in our packaging paper
production, aligning with circular economy goals. Energy efficiency is a key
focus, with increasing investments in renewable energy sources to reduce
emissions and reliance on fossil fuels.
OUTPUTS AND VALUE CREATION
Norske Skog delivers high-quality publication paper and containerboard
products to a global customer base. Our ongoing transformation towards
packaging paper and bio-based products ensures long-term value creation for
stakeholders:
• Customers: We provide sustainable and cost-effective paper solutions to
publishers, packaging converters, and industrial users.
• Investors: By transitioning to growth markets such as packaging and bio-
products, we secure long-term profitability and resilience.
• Communities and environment: Our commitment to sustainable forestry,
waste reduction, and energy efficiency benefits local economies and
reduces environmental impact.
VALUE CHAIN AND MARKET POSITION
Norske Skog operates across the upstream and downstream value chain,
collaborating with key stakeholders:
•
Upstream: Our raw materials are sourced from certified forestry operations
and recycling partners. Suppliers include wood procurement companies,
pulpwood providers, energy suppliers, and logistics partners ensuring
sustainable and efficient delivery.
• Production: Our strategically located mills in Europe produce publication
and packaging paper with a focus on resource efficiency and sustainable
production methods.
• Downstream: We serve a diverse customer base, including publishers,
commercial printers, and packaging manufacturers. Products are distributed
through direct sales, wholesalers, and large industrial customers, reaching
end-users in publishing, retail, and consumer goods industries.
As Norske Skog continues its transformation, we remain committed to
innovation, sustainability, and operational efficiency, ensuring long-term
success in the evolving pulp and paper industry.
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Upstream
Operations
Downstream
Raw materials
extraction
and
processing
Tier 1
supplier
Upstream
transport &
distribution
Own
operations and
sales
Downstream
raw materials
distribution
Customers
End users/
consumers
End of life
Activities/
suppliers
Forest owners
Harvesting
activities
Incoming
transport of
raw materials
Manufacturing
Sales
Administration
Outgoing
transport
finished
products
Printers
Publishers
Containerboard
customers
Newspaper
Magazine
Containerboard
Packaging
end users
Recycling
Landfill
Energy
recovery
Locations
Norway
Sweden
Austria
Germany
Norway
Sweden
Austria
Germany
EU
Norway
France
Austria
Germany
United Kingdom
Switzerland
Worldwide
Worldwide
Worldwide
Worldwide
Affected
stakeholders
Ecosystems
(environmental
organisations)
Ecosystems
Workers
harvesting
Nature
Workers
transportation
Employees
Local
communities
Ecosystems
Workers
transportation
Workers
processing
sold products
Local
communities
Workers waste
handling
Local
communities
STAKEHOLDERS
Engaging actively with stakeholders shape our understanding of material
issues and supports the creation of solutions and initiatives that form our ESG
commitment and goal roadmap. Engagement generally involves the public
affairs and investor relation teams, corporate management and mill
management teams.
The table on the following page showcases our most significant stakeholders,
methods of engagement and organisation, and the objectives and applications
of these interactions. Stakeholder perspectives are essential features of our
materiality assessment. The perspectives of key stakeholder groups inform
our strategy and business model in the following ways:
• Regular engagement with our employees drives key parts of our people
strategy and informs our approach to sustainability. Norske Skog integrates
results from the employee engagement into our HR management processes
and into sustainability decision-making, especially at mill levels.
• Norske Skog informs about procurement obligations and initiatives to the
suppliers. Regular engagement with suppliers ensures dialogue and insight
on supplier specific conditions and impact sourcing decisions.
• Central to our business model, Norske Skog’s mills engage directly with
local communities. Through regular collaboration, Norske Skog ensures
insights into plans affecting the respective communities.
• Engagement with customers and end-users affects product and service
development.
Insights
from
regular
B2B-customer
affects
product
development ensuring Norske Skog’s products continue to meet customers’
needs.
• Norske Skog communication with stakeholders is reported to adequate
managerial level and to proper governing bodies. The board of directors
receives regular status on material matters regarding outcome of the
communication with relevant stakeholders, especially when concerning
operational and investment plans.
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Stakeholders
How engagement is organised
Purpose of engagements
Outcomes of engagements
Own workforce:
•
Employees
•
Apprentices
•
Continuous dialogue with
union representatives and
HR engagement
•
Employees & contractors can raise
concerns through direct contact
with the management and our
online whistle-blower system
•
Lowest possible score on health
and safety concerns
•
Foster a collaborative and
meaningful workplace
•
Include employee/contractor input
into internal mechanisms
•
Developing fair labour practices
and sustainability initiatives
•
Addressing workers’ rights and
concerns
•
Improved and engaged business
culture
•
Updates of internal policies
•
Improved health and safety
performance
•
Employee satisfaction and
retention
Affected communities
•
Regular community consultations
•
Local affected community
representatives
•
Developing community
engagement and support
•
Addressing financial, social and
environmental impacts
•
Ensure alignment of business
operations with community needs
and environmental standards
•
Positive community relations
•
Strengthened social license to
operate
Customers
•
Direct contact with customers
•
Feedback from sales organisations
•
Understanding consumer
needs and preferences
•
Ensuring products meet
sustainability standards and
consumer expectations
•
Enhanced product quality
and customer satisfaction
•
Increased brand loyalty
and market share
Existing investors
•
Conference calls
•
Board meetings
•
Quarterly reports
•
Annual and sustainability reports
•
Annual general meetings
•
Maintain transparent
communication
•
Meeting the needs of financial
stakeholders for sustainability
data
•
Upholding our duty to keep
investors informed of ESG-related
information.
•
ESG rating improvement plans
•
Responses to investor queries
•
Aligning communication of our
(sustainability) strategy
to investors
Suppliers
•
Direct through engagement with
suppliers
•
Feedback from suppliers
•
Supplier audits
•
Annual ESG reports
•
The supplier code of conduct
•
Day to day correspondence
•
A continual dialogue with our
suppliers is critical to maintain
our sustainability targets
•
Monitor our suppliers’ ESG
progression in order to assist
in the assessment of ESG risks
and pinpoint suppliers who
demonstrate best practices
•
Managed supplier expectations
•
Ensuring suppliers adhere to
our business conduct standards
and maintain the collaborative
decarbonisation plans of
Norske Skog
Industry bodies and regulators
•
Member-only conferences
•
Joint initiatives and programmes
•
Developing industry standards
on sustainability
•
Understanding and engaging
with value chain workers’
representatives
•
Ensure compliance with existing
and future legislation
•
Maintaining industry knowledge
of best practices
BRIEF DESCRIPTION OF MATERIAL IROS AND THEIR CONCENTRATION
IN THE BUSINESS MODEL
Norske Skog has identified several material impacts, risks, and opportunities
(IROs) through its materiality assessment, which affect both the operations
and the upstream and downstream value chain.
•
Negative impacts:
Norske Skog’s operations generate air and water
pollution, greenhouse gas (GHG) emissions, and consume significant
amounts of energy and water. Additionally, the sourcing of wood can
contribute to land degradation and deforestation, while industrial processes
pose a health and safety risk to employees.
•
Positive impacts:
The group contributes positively by utilising renewable
and recycled resources, generating bio-based energy from waste, and
promoting circular economy principles.
•
Risks:
Major risks include potential exclusion from the EU ETS market,
fluctuating energy prices, water shortages, stricter regulatory permits, and
dependency on natural resources like wood and recycled fibre. Reputational
risks related to unethical business practices are also material.
•
Opportunities:
Norske Skog can capitalise on the demand for low-emission
products, bio-based alternatives, and new business areas such as
nanocellulose and bio-composites.
The concentration of these IROs varies across Norske Skog’s value chain:
•
Upstream: Wood sourcing, energy supply, and transportation.
• Operations: Mills’ emissions, water usage, energy consumption, employee
safety and working conditions.
• Downstream: Product recyclability, transportation, and evolving customer
preferences.
FINANCIAL EFFECTS AND STRATEGIC RESPONSES
Norske Skog has already adapted its strategy to mitigate negative impacts
and leverage opportunities.
• Financial effects: Exclusion from EU ETS and volatile energy prices could
lead to significant cost increases. Water scarcity and stricter environmental
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regulations may raise operational costs. However, investment in bio-based
alternatives and recycled packaging paper diversifies revenue streams,
reducing dependence on declining publication paper markets.
• Strategic responses:
o Transition towards renewable energy sources and increased energy
efficiency.
o Expansion into recycled containerboard production (Norske Skog Bruck
and Norske Skog Golbey).
o Strengthening
responsible
sourcing
practices
and
biodiversity
conservation efforts.
MATERIAL IMPACTS AND THEIR CONNECTION TO STRATEGY AND
BUSINESS MODEL
(i) Impact on people and the environment
• Negative impacts: Pollution and emissions contribute to environmental
degradation and health concerns, while industrial risks impact employee
safety.
• Positive impacts: Circular economy initiatives and renewable energy
production reduce the company’s carbon footprint and contribute to
resource efficiency.
(ii) Origin and connection to strategy
•
Norske Skog’s reliance on energy-intensive manufacturing and natural resources
are integral to its business model, necessitating mitigation strategies.
• Sustainability efforts are embedded in Norske Skog’s long-term strategy
through increased use of recycled fibres and reduced fossil fuel dependency.
(iii) Time horizons of impacts
•
Short-term (<1 year): As referenced in table on the following page.
•
Medium-term (1-5 years): As referenced in table on the following page.
•
Long-term (>5 years): As referenced in table on the following page.
(iv) Business relationships involved
• Norske Skog is involved through direct operational activities emissions,
sourcing) and indirect relationships (transport, suppliers). Close colla-
boration with suppliers, regulators, and customers is key to mitigating risks
and capitalising on opportunities.
CURRENT AND ANTICIPATED FINANCIAL EFFECTS OF MATERIAL RISKS
AND OPPORTUNITIES
•
Short-term: As referenced in table on the following page.
•
Medium-term: As referenced in table on the following page.
•
Long-term: As referenced in table on the following page.
PLANNED STRATEGIC ACTIONS
•
Continued investment in renewable energy and bio-based products.
•
Diversification into recycled packaging paper.
• Strengthening sustainable sourcing policies.
•
Investing in water-efficient production technologies.
• Developing low-carbon business models to ensure long-term financial
resilience.
RESILIENCE OF STRATEGY AND BUSINESS MODEL
Norske Skog’s business model is resilient due to:
•
A diversified product portfolio, reducing reliance on publication paper.
•
Investments in bio-based alternatives and energy-efficient processes.
•
Strong regulatory engagement and sustainability commitments.
•
Long-term financial planning, including capex in new technologies.
Quantitative resilience analysis considers scenarios related to carbon pricing,
energy availability, and climate change adaptation, ensuring the company can
withstand market fluctuations and regulatory shifts.
CHANGES IN MATERIAL IROS COMPARED TO THE PREVIOUS
REPORTING PERIOD
•
Increased focus on recycled packaging paper as a new revenue stream.
•
Enhanced climate resilience strategy, particularly regarding energy efficiency.
•
Greater emphasis on responsible sourcing.
SPECIFICATION OF IROS COVERED BY ESRS DRS VS. ENTITY-SPECIFIC
DISCLOSURES
• ESRS DRs coverage: GHG emissions, energy consumption, water use,
pollution, biodiversity, human rights (worker safety, diversity, ethical
practices).
• Entity-specific disclosures: Circular economy innovations, bioproduct
developments, industry-specific sustainability challenges, and political
advocacy on EU ETS inclusion.
CONCLUSION
Norske Skog’s material IROs are closely linked to its business model, driving
strategic adaptations and investments. The company’s resilience stems from
its commitment to circular economy principles, energy efficiency, and
sustainable sourcing. By addressing impacts, risks and leveraging opportunities,
Norske Skog aims to ensure long-term sustainability and competitiveness.
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Norske Skog Golbey
Photo: Carsten Dybevig
MATERIALITY ASSESSMENT PROCESS
During 2024, Norske Skog conducted a double materiality assessment based
on the requirements of the ESRS. The foundation of such an assessment
involved identifying and objectively assessing impacts, risks and opportunities
(IROs). The impacts, risks and opportunities identified in the DMA are
described under the relevant topical ESRS in this report. The results from the
DMA were reviewed and updated by mill and corporate management in 2025.
DMA-PROCESS METHODOLOGY
Identification of sustainability matters: Norske Skog’s DMA process began
with evaluating its business activities, value chain, and stakeholders to identify
relevant sustainability topics, ensuring alignment with ESRS 1 and excluding
non-material issues.
Assessment of Impacts, Risks, and Opportunities (IROs): IROs were evaluated
based on impact materiality (environmental and social impacts) and financial
materiality (risks and opportunities) using a scoring methodology considering
severity, likelihood, and financial magnitude over short-, medium-, and long-
term horizons.
The results were validated through a dual bottom-up (mill level) and top-down
(corporate level) process, discussed with the board of directors, and integrated
into corporate strategy, with annual reviews to ensure continuous improvement,
integration and adaptation.
4. Impacts, risks and opportunity management
MATERIAL IMPACTS, RISKS AND OPPORTUNITIES
In the DMA-process, Norske Skog has evaluated these IROs to be material:
Impacts, Risks and Opportunities (IRO)
Type
E1
Climate change
Climate change mitigation
GHG emissions across the value chain
Impact, negative
x
x
x
x
Low-emission products
Opportunity
x
x
x
x
Exclusion from the EU ETS market
Risk
x
x
Energy
Energy consumption
Impact, negative
x
x
Energy prices
Risk
x
x
E2
Pollution
Pollution of air (SOx and NOx)
Pollution of air from boilers
Impact, negative
x
x
Pollution of water
Discharge of process water
Impact, negative
x
x
E3
Water and marine
resources
Water withdrawal
Potential water shortage
Risk
x
x
E4
Biodiversity
and
ecosystem
Ecosystem services
Dependency on natural resources: sourcing of wood
Risk
x
x
Land degradation
Degradation of land through felling of forests
Impact, negative
x
x
E5
Resources and
circular economy
Resource inflows including use
Utilisation of renewable and recycled resources in production of products
Impact, positive
x
x
Availability of recycled fibre for production of products
Risk
x
x
Resource outflows related to products and services
Production waste
Impact, negative
x
x
x
S1
Own employees
Working conditions
Industrial accidents
Impact, negative
x
x
Advocate for improved working conditions through freedom of association
Impact, negative
x
x
Equal treatment and opportunities for all
Attract and keep top talent through training and skills development
Risk
x
x
G1
Business
conduct
Corporate culture
Unethical business practice
Risk
x
x
Upstream
Value chain
Time horizon
Own operations
Downstream
Short term
Medium term
Long term
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IDENTIFYING SUSTAINABILITY MATTERS
The initial phase focussed on evaluating Norske Skog’s activities and business
relationships, value chain and affected stakeholders to pinpoint relevant
sustainability issues as outlined in ESRS 1, paragraph AR16. This approach
ensured a thorough examination of critical sustainability topics in the pulp and
paper industry, alongside the exploration of company-specific matters.
Irrelevant sustainability topics and sub-topics that did not align with Norske
Skog’s business model were excluded from the analysis.
STAKEHOLDER ENGAGEMENT
The DMA process engaged several key personnel, corporate and mill
management to evaluate Norske Skog’s sustainability and business matters
that have a material impact on future business unit operations in respective
locations and their impact at group level. The following engagement was done
to identify material risk and opportunities:
At mill level:
•
Internal experts: The mill DMA teams are made up by the mill manager and
other key personnel in different functional areas, including finance, human
resources (HR), business development, health, environment and safety
supply chain management and marketing with local knowledge on topics
with strategic importance to the mills.
• External experts: Each mill has regular contact with local external
stakeholder groups such as customers, suppliers, national permit agencies,
NGOs, professional national trade organisations, local communities and
forest owner association that support the identification and assessment of
topics with strategic and financial importance.
At corporate level:
•
Internal experts: The corporate management team has unique knowledge of
financial, strategic and operational matters for the entire group. The Head
of Sustainability and VP Communication and Public Affairs play a vital role
in the DMA-process.
•
External experts: The corporate management team has regular contact with
key stakeholder groups for the group including policy makers, financial
institutions, board of directors, shareholders, industry associations, key
customers and suppliers.
Norske Skog did not organise separate stakeholder interviews as part of the
DMA process. Norske Skog has continuous engagement with different
stakeholder groups throughout the year regarding sustainability topics and
this input was used actively throughout the DMA process.
ASSESSING IROS RELATED TO BUSINESS PRACTICES
The basis for identification of company specific IROs was the business model,
strategy and value chain of Norske Skog. Company specific IROs identified in
the DMA conducted in 2024 were used as a starting point for the 2025 DMA-
review and update
and linked with the long list of sustainability matters (ESRS
topics, sub-topics and sub-sub-topics). No entity’s specific sustainability
matters were added to the list.
Several IROs were restructured in the 2025 assessment to better reflect their
interdependencies and thematic alignment.
Within the environmental dimension, the negative impact “Water intensive
production process,” previously reported as a separate IRO under E3 in 2024,
was moved to E2 and combined with “Discharge of process water.” In addition,
the risks “Stricter permits level” (previously under E3) and “Dependency of
natural resources: process water” (previously under E4) were consolidated in
2025 with “Potential water shortage” under E3 Water and marine resources.
Within the social dimension (S1 Own employees), “Poor gender diversity,”
which was a separate risk in 2024, was combined in 2025 with “Attract and
keep top talent through training and skills development.”
Within the governance dimension (G1 Business conduct) the risk in 2024,
“Failure to protect whistleblowers” was merged in 2025 with “Unethical
business practice,” reflecting their related nature.
These adjustments were made to improve clarity, reduce overlap, and better
align related impacts, risks, and opportunities.
Certain segments of Norske Skog’s supply chain received extra attention
through cross managerial and cross function discussions, especially those
with a significant potential impact and relevance to Norske Skog’s operations.
These areas included business risk related to production process, waste-
water treatment, water availability, wood logging timing, as well as sustainable
energy availability and product development according to market environ-
mental expectation.
The assessment of climate-related impacts, risks, and opportunities was an
integral part of the DMA concerning sustainability issues. Norske Skog carried
out a revision of the identified climate-related risks and opportunities following
the Task Force on Climate related Disclosure Framework (TCFD) in 2023. As
part of this process, a climate-related scenario analysis was carried out in
cooperation with CEMAsys, a Nordic ESG Consulting firm. Both processes
supported the identification and assessment of physical and transitional risks
and opportunities across different time frames.
The identification of IROs concerning business practices involved mapping
out geographic areas with heightened potential impacts, risks and
opportunities associated with corruption, bribery, and human rights issues.
The process also revisited business conduct risks previously identified in
Norske Skog’s corporate standards and continuous compliance programme.
MATERIALITY SCORING APPROACH
The assessment of impacts, risks, and opportunities (IROs) followed ESRS 1
requirements, evaluating impact materiality (effects on people and the
environment) and financial materiality (risks and opportunities). Impact
materiality was scored from 1-5 based on severity (scale, scope, irremediability)
and likelihood, prioritising human rights impacts. Financial materiality was
scored separately on magnitude and likelihood, considering drivers like
regulations, market, and reputation.
Scores were calculated by multiplying severity with likelihood (max 25) for
impact materiality and magnitude with likelihood (max 25) for financial
materiality. Issues surpassing a set threshold were classified as material.
Assessments covered short- (<1 year), medium- (1-5 years), and long-term
(>5 years) horizons, integrating strategic, budgetary, and due diligence data,
including human rights and climate risk assessments.
A dual bottom-up (mill-level) and top-down (corporate-level) approach
ensured comprehensive evaluation. Mills assessed local IROs with site-specific
financial thresholds, while corporate teams consolidated results in validation
workshops with sustainability, communication, and public affairs teams.
Findings were presented to the board of directors. Continuous stakeholder
engagement informed the process, involving 30-50 representatives across
investors, suppliers, NGOs, and regulators.
DECISION – MAKING AND INTERNAL CONTROLS
Critical decisions in the process included scoring IROs, and the final
assessment of sustainability matters in the workshop. Internal control
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measures were implemented throughout the process, ensuring that the
scoring methodology was followed. Each IRO was documented to justify its
materiality.
FUTURE STEPS – INTEGRATION, MONITORING, AND REVIEW
Norske Skog integrate results from the DMA process into the corporate
strategy and incorporate responses to impacts, risk and opportunities into mill
and corporate level monitoring and management processes. This may affect
future type of investments, and level of capital expenditure.
Norske Skog commits to annually revisiting the DMA process for identifying,
assessing, and prioritising IROs, considering evolving trends, underlying
assumptions, context, and regulatory changes. A comprehensive review of the
DMA will be conducted annually to ensure its efficacy and relevance. The DMA
process will adjust to changes in climate related issues and company specific
needs. However, the steps in the DMA methodology and stakeholder groups
have been the basis for the latest assessment periods. During the year, the
head of sustainability at corporate level and local sustainability managers will
monitor and report on action plans to adequate governing body.
As described in this chapter, Norske Skog updated its materiality assessment
which is based on the concept of double materiality. The assessment
objectively scored impacts, risks and opportunities (IROs) as a basis for
determining whether sustainability matters were material or not. This section
describes the process applied to identify and assess material IROs. Norske
Skog does not have a separate enterprise risk management tool (ERM) in
performing a risk assessment process. The risk assessment is part of the
business unit’s process to prepare the DMA-evaluation, annual operational
plans and long-term strategy.
Description of the process to identify and assess
material climate-related IRO’s
E1 CLIMATE CHANGE
In 2025, Norske Skog assessed its climate-related IROs, facilitated by the
updated DMA. The identification and assessment of climate-related impacts
focused on Norske Skog’s GHG emissions from own operations as well as up-
and downstream in the value chain. The GHG emission inventory served as the
main source of information to identify drivers for climate related impacts in
relation to the current and future business strategy. Recent assessment report
from the Intergovernmental Panel on Climate Change (IPCC) and other
international research provided context on GHG emissions impact on people
and the environment.
The identification and assessment of climate-related risks and opportunities
was supported by the revision of the Task Force on Climate related Disclosure
Framework (TCFD) carried out in 2023, evaluating physical risks (acute and
chronic), transition risks (policy, legal, technology, market, reputational) and
opportunities (resource efficiency, energy source, products and services,
markets, resilience).
With increased focus on climate change and its implications on current and
future financial performance, Norske Skog carried out a climate-related
scenario analysis in 2023, in cooperation with CEMAsys, a Nordic ESG
Consulting firm. The scenario-analysis assessed access to process water and
electricity in line with the recommendations laid out by the TCFD. The
assessment used the IEA’s Net Zero Emissions (1.5°C), IEA World Energy
Outlook (WEO) 2022 and IPCC SSP1-2.6 “Sustainability” scenario to assess
how our assets and business activities may be exposed to physical risks. For
the assessment of transition risk IPCC’s SSP5-8.5 scenario (4.0°C) was
applied. The Net Zero 2050 scenario limits global warming to 1
.5°C and
includes stringent climate policies and rapid technological change to reach
net zero CO2 emissions by 2050. Carbon price level EUR 250/tCO2e in 2050.
IPCC’s SSP5-8.5 scenario (4.0°C) assumes that only policies that have already
been introduced are preserved, leading to high physical risks. Emissions
continue to grow until 2080, resulting in up to 4.0°C of warming and severe
physical risks, including irreversible changes such as higher sea levels.
As part of the scenario analysis CEMAsys conducted workshops and
interviews with relevant leaders across the company as part of the process to
make the analysis. Identifying climate-related risks and opportunities involved
a top-down approach, as well as an ‘outside-in’ analysis of risks and
opportunities specific to pulp and paper industry.
The findings from the scenario analysis were presented to the mill and
corporate management team and will be considered as part of Norske Skog’s
strategy process to improve its resilience. The climate-related risks that were
identified through the scenario analysis exercise have been incorporated into
the annual strategic review process by Norske Skog’s mills and the corporate
management.
The timeframe used in the TCFD assessment and scenario analysis defined
short-, medium- and long-term as 2025, 2030 and 2050 respectively. The
2030 timeframe aligns with Norske Skog’s GHG emission reduction target and
the 2050 timeframe align with Norske Skog’s commitment to net zero
emissions by 2050, in accordance with the goal of the Paris Agreement.
Both the TCFD and scenario analysis evaluated the situation at each business
unit and the entire organisation. The climate scenarios and related assumptions
are compatible with the financial statements in this report.
E2 POLLUTION
Norske Skog is committed to addressing pollution-related impacts, risks, and
opportunities across our operations and value chain. Norske Skog conducted
a materiality assessment applying elements of the LEAP approach, focusing
on pollution of air, water, soil, microplastics, substances of concern, and their
dependencies on ecosystem services to evaluate their materiality and
significance.
Screening methodologies and assumptions: To identify actual and potential
pollution-related impacts, Norske Skog undertook a screening process across
business units within our operations, assessing the interface with nature. This
involved an evaluation of emissions from our direct assets, upstream, and
downstream. The screening methodologies included detailed data collection
on pollutant emissions, their severity, and likelihood of impacts on the
environment and human health. The results provided a basis for comparing
the environmental performance.
Consultations and community engagement: Norske Skog’s commitment to
transparency include consulting with affected communities to better
understand their concerns and the potential impact of our operations on their
environment and Norske wellbeing. The business units engage in dialogue
with local authorities and public and requested feedback from stakeholders
residing near the sites and along the value chain. These dialogues help us
gather valuable insights, build relationships, and foster a better understanding
of the local concerns and expectations related to pollution and its management.
Assessment of Risks and Opportunities: The above written approach guided
our assessment, enabling the identification of transition risks and opportunities
across the operations and the value chain. This involved evaluating policy and
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legal aspects, technological advancements, reputation changes, and potential
physical risks arising from pollution incidents.
Opportunities were identified to access green financing to reduce pollution of
air and water, build resilience, and improve our reputation through proactive
pollution prevention and control measures. The outcome highlighted specific
site locations and business activities where pollution emerges as a material
issue, enabling us to revisit the business strategy and prioritise actions to
mitigate risks and leverage opportunities effectively.
Norske Skog has ensured the consideration of geographical areas, types of
assets, inputs, outputs and distribution channels when describing upstream
and/or downstream value chain material IROs.
E3 WATER AND MARINE RESOURCES
As part of our DMA process, Norske Skog have implemented processes to
identify and assess material impacts, risks, and opportunities related to water
and marine resources in our operations and value chain.
Norske Skog has applied elements of the LEAP approach to assess water and
marine resources-related IROs by screening site locations and business
activities to identify potential impacts on water and marine resources.
Norske Skog used historical statistics, feedback from experts and authorities
in the water risk assessments, and marine resource evaluations to conduct
this screening. In addition, Norske Skog mills conduct monthly environmental
reporting (E-Index) to the corporate management and board of directors
using Best Available Technology (BAT) reference values for paper and pulp
production published by the EU Commission under the Industrial Emissions
Directive. This data was also assessed during the process.
The climate-related scenario analysis carried out in 2023 that outlined future
precipitation and climate change analysis was also used as a key source. Key
areas of focus included locations with high water stress, potential water
shortage and operations interfacing with marine resources. The discharge to
water at all units follow strict reporting schedule to the authorities with
specific attention to breach of permit. Breach of permit is severe and may be
followed up by sanctions from the proper authorities. Norske Skog business
units conduct regular consultations with affected communities on water-
related topics.
Norske Skog’s materiality assessment covered:
• Water use: Evaluated our consumption of surface and groundwater,
including withdrawals and discharges, and water shortage and effluence
issues at different sites.
• Marine resources: Assessed our use of marine resources and their impact
on ecosystem health.
The driving assumption of using the above process is to first identify potential
sites and/or business activities that have the potential to impact water and
marine resources. Norske Skog identified physical risks related to periodic
water scarcity, and potential stricter permit level, and potential water
restrictions in certain periods caused by climate change.
E4 BIODIVERSITY AND ECOSYSTEMS
Norske Skog have undertaken a review of our processes to identify and assess
material impacts, risks, and opportunities related to biodiversity and
ecosystems across our operations and value chain.
Norske Skog systematically screened all site locations and business activities
to identify actual and potential impacts on biodiversity and ecosystems,
including transition and physical risk. Systemic risk will be considered in the
upcoming transition risk review. This process included the following key steps:
•
Methodologies and tools: Tools used to identify biodiversity sensitive areas
close to own operations include the IBAT biodiversity assessment tool.
Norske Skog collaborate with forest associations and industry partners in
the value chain through certification bodies like PEFC and FSC to enable
the mapping and assessment of the ecological sensitivity of forest
harvesting and the impact it has on biodiversity and ecosystems.
• Regular interactions: There are regular interaction through supplier and
customer relationship with forest owners and through membership industry
associations to evaluate the reports describing any breach of the
certification standard. In addition, Norske Skog gather through dialogue
with NGOs, research institutes like NIBIO in Norway and the authorities an
extensive overview of the environmental impact, risk and opportunities
related to biodiversity and ecosystems.
•
Assumptions: The assessment assumed that all operations and sourcing of
wood from areas within or near biodiversity hotspots and protected areas
pose a higher risk to biodiversity. Norske Skog prioritised these areas for
detailed assessment.
• Screening results: The screening assessed areas where our operations
intersect with sensitive ecosystems, particularly in regions where land-use
change, pollution, and freshwater use are significant concerns. Plans are
being developed for how to monitor, and mitigate negative impacts going
forward.
Regular dialogue and consultations have been conducted with affected
communities and other stakeholders as part of the screening process. This
supported gathering insights on local ecological context and dependencies on
ecosystem services. The following areas were paid attention to during the year:
• Supply chain: Evaluate how timber harvesting affects local ecosystems,
focusing on sustainable forest management including mitigating activities
and effectiveness of certification schemes like FSC or PEFC.
• Operations: Assess effluent management, and water usage at production
facilities and their effects on local biodiversity.
•
Land use: Consider land occupation and conversion, especially in areas near
protected habitats or biodiversity-rich zones.
In alignment with AR 4 and AR 6 of the ESRS E4 guidelines, our materiality
assessment focused on the following aspects:
1 - Contribution to direct impact drivers on biodiversity loss:
•
Climate change: Norske Skog evaluated our greenhouse gas emissions and
their contribution to climate change, which is a driver of biodiversity loss.
•
Land- and water use change: Our operations’ impact on land- and water-use
change.
• Direct exploitation and pollution: The effects of resource extraction and
pollution from our operations were examined.
• Invasive species: The potential for our activities to introduce or spread
invasive alien species was considered like the spread of bark beetle.
2 - Impacts on species and ecosystems:
• Species population and extinction risk: Norske Skog considered our
operations’ impact on local species populations and their global extinction
risk, focusing on endangered species.
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•
Ecosystem condition and services: The extent and condition of ecosystems
in proximity to our operations were evaluated, including the impact on
essential ecosystem services such as water purification and climate
regulation.
E5 RESOURCE USE AND CIRCULAR ECONOMY
Norske Skog have assessed the operations and the value chain to identify
material impacts, risks, and opportunities related to resource use and the
circular economy. The process involved a comprehensive screening of our
assets, activities, and relationships within our upstream and downstream
value chain.
Relevant assumptions for reviewing the impact, risk and opportunity assessment:
1. - Concentration of impacts in the business model and value chain
• Norske Skog’s positive environmental impacts are integrated across its
operations and value chain. In the upstream segment, the company sources
fresh fibre from sustainably managed forests and recovered paper from
recycling suppliers. The efficient use of these materials supports the circular
economy and minimises environmental impact. Within its operations, Norske
Skog’s mills optimise energy and raw material utilisation while repurposing
production waste for energy generation and product development. Down-
stream, the company’s recycled and renewable products contribute to
reducing reliance on virgin raw materials, aligning with global sustainability
goals and regulatory frameworks.
2. - Current and anticipated effects of impacts on business model and strategy
•
The focus on renewable and recycled resources is a cornerstone of Norske
Skog’s long-term strategy. The increasing demand for sustainable products
has led to diversification into recycled containerboard and bio-products,
reinforcing the company’s market position and resilience. The shift from
fossil-based materials to bio-composites and circular resource use aligns
with regulatory trends and consumer preferences, driving continued
investment in energy efficiency and waste reduction initiatives. The new
thermo-mechanical pulp line at Norske Skog Skogn is an example of
ongoing strategic adaptation to enhance resource efficiency and reduce
emissions.
3. - Description of material positive and negative impacts
• Norske Skog’s sustainability initiatives have direct positive effects on the
environment, including reduced carbon emissions, lower landfill waste, and
decreased dependency on fossil fuels. The integration of recycled materials
into production decreases deforestation pressures while promoting a
circular economy. However, a key risk is the availability and cost of recycled
fibre, which could impact profitability and production stability. If demand for
recycled fibre increases due to regulatory requirements or alternative uses
in other industries, Norske Skog may face supply chain challenges. These
impacts are closely connected to the company’s strategic focus on
sustainability and resource efficiency. The expected time horizon for these
impacts ranges from immediate operational adjustments to long-term
industry transformations.
4. - Resilience of strategy and business model
• Norske Skog’s strategy is resilient to environmental and market risks
through continuous innovation, diversification, and vertical integration
within the value chain. Norske Skog employs a qualitative and quantitative
approach to assessing resilience, including investments in waste-to-energy
technologies, bio-product development, and process optimisation. Norske
Skog’s resilience is further strengthened by its ability to adapt to regulatory
changes and evolving market preferences. By securing access to renewable
energy and improving raw material efficiency, Norske Skog ensures long-
term sustainability and competitiveness.
Screening methodologies: Circular economy aims to reduce impacts on nature,
by minimising the environmental impact of products, materials and other
resources, minimising waste and the release of hazardous substances.
Regarding E5, the assessment utilised methodologies applied under ESRS E1
(including energy consumption), ESRS E2 (pollution), ESRS E3 (water and
marine resources) and ESRS E4 (biodiversity, ecosystems, raw materials) to
evaluate dependencies and impacts, identifying resource inflows, outflows,
waste generation, and their environmental impact.
Consultation and engagement: Dialogue with affected communities, NGOs and
value chain partners played a pivotal role in our assessments, which provided
invaluable insights into community perspectives, enabling a more holistic
evaluation of our impacts and risks. Norske Skog mill personnel and group
directors maintain regular engagement through personal meetings, Teams
calls, and site visits with customers, suppliers, local authorities, and relevant
NGOs.
Material risks and opportunities: Assessing material risks and opportunities
was a critical aspect of our process. This involved identifying transition risks
and opportunities across policy and legal, technological, market, and
reputational aspects. Physical risks such as resource depletion were also
carefully evaluated. Opportunities emerged in the nature of the finished good,
in resource efficiency, alternative markets, waste handling, resilient strategies,
and reputation enhancement, emphasising a shift toward circularity and
reduced resource dependence. The nature of the finished product, especially
considering the carbon footprint and the level of reusable raw material, in
addition to the energy production with household and production waste, give
specific commercial advantages for the buyers.
Methodologies and tools utilised: In assessing our impacts, risks, and
opportunities, Norske Skog relied on internal calculations, investment
strategies, environmental footprint data and other analysis. These frameworks
provided robust analytical support, enabling a comprehensive evaluation of
our operations and value chain. In addition to our process identifying and
assessing resource use and circular economy-related IROs, Norske Skog
measures and reports on the waste, process leftover and water discharge
generated from our operations.
Outcomes of the assessment: The nature of Norske Skog’s business model is
to use renewable sources of energy and 100% recycled material for packaging
paper production and a mix of renewable and virgin materials for publication
paper production.
Waste from the production process, waste from the wastewater treatment
plant and bark from the wood may be used as a source of energy to the bio
boiler. However, the ash from the bio boiler is either commercially exploited or
disposed in public deposits. There are special internal control routines
handling all hazardous waste, which is being controlled and sent to officially
certified public deposit.
Norske Skog’s commitment to sustainability and circular economy principles
is deeply embedded in its business model, operations, and upstream and
downstream value chains. The company’s use of renewable and recycled
resources, waste-to-energy initiatives, and waste utilisation for product
development contribute significantly to reducing its environmental footprint
while enhancing economic efficiency. However, there are also risks associated
with the availability of recycled fibre for production due to market demand and
policy influences.
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S1 OWN EMPLOYEES
Norske Skog identifies material impacts, risks, and opportunities related to its
employees by considering various criteria, including health and safety
standards, which are paramount in ensuring a secure working environment.
The company evaluates potential safety hazards in the process industry and
pulp and paper as a key element in the assessment.
Other criteria which are central in the assessment process is working
conditions, employee wellbeing and development. Norske Skog mills conduct
regular surveys and feedback sessions to understand employee needs and
concerns. This helps identifying areas for improvement in work-life balance,
professional growth opportunities, and overall job satisfaction.
Additionally, Norske Skog considers diversity and inclusion as essential
factors in its assessment process. The company reviewed its hiring practices,
promotion policies, and workplace culture related to equality and zero
tolerance for discrimination.
Through regular consultations and structured dialogues with trade unions
and employee representatives, Norske Skog gathers insights on employee
concerns, workplace conditions, and potential risks. This collaborative
approach ensures that management remains informed about the needs and
expectations of its workforce, allowing the company to address issues
proactively and leverage opportunities for improvement. By integrating
feedback from unions into its assessment process, Norske Skog fosters a
transparent and inclusive environment that prioritises employee wellbeing
and organisational resilience.
G1 BUSINESS CONDUCT
Norske Skog identifies material impacts, risks, and opportunities related to
business conduct matters through a comprehensive process that considers
various criteria. The group evaluates the location of its operations, recognising
that regional regulations and socio-economic conditions can significantly
influence business conduct. For instance, operations in areas with stringent
environmental laws require more robust compliance measures. Additionally,
Norske Skog assesses the activity type, such as manufacturing or distribution,
to determine specific risks and opportunities associated with each operational
phase.
The sector in which Norske Skog operates is another critical criterion. As a
major player in the international publication paper market, the company must
adhere to industry-specific regulations and standards, ensuring ethical and
sustainable practices throughout its value chain. This sectoral focus helps in
identifying unique risks, such as those related to deforestation and carbon
emissions, and opportunities like advancements in recycling technologies.
Finally, the structure of the transaction is scrutinised to ensure transparency
and integrity. This includes evaluating the nature of business relationships,
such as partnerships and supply chain agreements, to mitigate risks of
corruption and ensure compliance with anti-trust laws. By integrating these
criteria into their assessment process, Norske Skog aims to uphold high
standards of business conduct and sustainability.
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ENVIRONMENT
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1
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Norske Skog reports its EU Taxonomy disclosures in accordance with the
simplified reporting framework introduced by the European Commission’s
Delegated Regulation (2025) 4568. The simplified framework streamlines the
disclosure of environmentally sustainable activities and allows undertakings
to classify economic activities as non-material where their contribution to
Taxonomy KPIs is insignificant.
Approach
During 2025, the Group conducted an updated screening of economic
activities potentially covered by the EU Taxonomy. All activities identified
relate to small-scale, energy-related side-streams (such as biogas, bioenergy
heat, waste heat recovery and cogeneration). Collectively, these activities
contribute less than 2 % to each of the Group’s KPIs: turnover, CapEx and
OpEx.
Under the simplified framework, activities with immaterial financial impact
are disclosed as non-material and are not assessed for Taxonomy-eligibility
or Taxonomy-alignment. Norske Skog has therefore classified all potentially
relevant activities as non-material and reports them accordingly in Template
1, column (14) (non-assessed due to non-materiality).
Because all KPIs show 0 % Taxonomy-eligible in column (3), the activity-level
disclosure in Template 2 is not required and is therefore omitted.
Contextual information on non material activities
All Taxonomy relevant activities represent a very small share (<2 %) of
operational and financial activity and do not have a material influence on the
Taxonomy KPIs. Consequently, these activities are disclosed as non-assessed
due to non-materiality.
All non-material activities fall within NACE D35 – Electricity, gas, steam and
air-conditioning supply. These activities relate to small-scale energy
side-streams, including biogas production, heat from bioenergy, waste-heat
utilisation and cogeneration. Their financial contribution is minor relative to
the Group’s core operations under NACE C17 – Manufacture of paper and
paper products, which remain material but are not covered by the EU
Taxonomy.
Data sources and internal controls
Taxonomy KPI denominators are derived from the consolidated financial
statements (continuing operations). Calculations and classifications are
prepared jointly by the sustainability and finance functions, following
established internal controls and reconciliation processes. Any future
changes in the scale or financial relevance of Taxonomy related activities will
be reflected in subsequent reporting.
Climate change
(ESRS E1)
EU TAXONOMY
Financial year 2025
Breakdown by environmental
objectives of Taxonomy
aligned activities
KPI (1)
Total (2)
Propotion of
Taxonomy
eligible
activities (3)
Taxonomy
aligned
activities
(4)
Proportion of
Taxonomy
aligned
activities
(5)
Climate Change Mitigation (6)
Climate Change Adaptation (7)
Water (8)
Circular Ecnomy (9)
Pollution (10)
Biodiversity (11)
Proportion
of enabling
activities
(12)
Proportion
of
transitional
activities
(13)
Not
assessed
activities
considered
non-material
(14)
Taxonomy
aligned
activities in
previous
financial
year
2024 (15)
Proportion
of
Taxonomy
aligned
activities
in previous
financial
year
2024 (16)
Text
NOK
%
NOK
%
%
%
%
%
%
%
%
%
%
NOK
%
Turnover
10 466.44
0.00 %
0.00
0.00 %
0 %
0 %
0 %
0 %
0 %
0 %
%
%
0.05 %
0.00
0.00 %
CapEx
979.80
0.00 %
0.00
0.00 %
0 %
0 %
0 %
0 %
0 %
0 %
%
%
0.00 %
0.00
0.00 %
OpEx
445.18
0.00 %
0.00
0.00 %
0 %
0 %
0 %
0 %
0 %
0 %
%
%
1.73 %
0.00
0.00 %
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1. Strategy
Leading international institutions like the United Nations (UN) and the
International Panel on Climate Change (IPCC) have documented how climate
change poses as a significant challenge to our planet, impacting ecosystems,
weather patterns, and human livelihoods and stressed the need to limit global
temperature increases to 1.5
O
C compared with pre-industrial levels. The
decisions and consensus from related international conferences have an
impact on the way we operate, from industrial facility operations to the entire
value chain, including raw material sourcing, energy use, production and
distribution.
Norske Skog recognises its responsibility to mitigate efforts of climate change
through sustainable business practices and commits to create shareholder
value while delivering on ambitious emission reduction targets and supplying
low-emission products, aligning with the goal of the Paris Agreement. Our
strategy is designed to meet these global changes, enhancing our group’s
valuation and local reputation. Norske Skog will strive to achieve net zero
emissions in scope 1 and 2 by 2050, positioning us as a competitive leader in
a net zero economy. Norske Skog’s environmental policy is an integral part of
the strategy to achieve Norske Skog’s business goals.
The strategic ambition of Norske Skog is to “Create green value”, and for all
business units to:
1. Reduce greenhouse gas (GHG) emissions in own operations and across the
value chain
2. Operate on renewable energy
The reduction of greenhouse gases was integrated as a key part of the
business strategy and the business model in 2020. This ambition drives the
commitment across the group to reduce energy consumption, increase the
share of renewable energy sources and to optimise transport to reduce
emissions and impact on the climate.
Greenhouse gas emissions occur primarily from energy generation processes.
All mills have their own boilers or incinerators producing thermal energy from
production waste, like bark, and other residues. Fossil fuels in the form of
natural gas and oil is also used. The main emissions associated with these
activities include carbon dioxide, particulates, sulfur dioxide and nitrogen
oxides. Such emissions have a negative impact on climate change.
TRANSITION PLAN FOR CLIMATE CHANGE MITIGATION
Norske Skog does not currently have a climate change transition plan. This is
partly due to the lack of an emission reduction target for Scope 3, a requirement
for a transition plan in accordance with ESRS requirements. At the end of
2025, Norske Skog set an emission reduction target for Scope 3 and will as a
result start to work on a transition plan compliant with the requirements in
ESRS E1-1 in 2026.
Norske Skog has established an environmental policy to prevent, mitigate and
remediate actual and potential impacts in order to address risks and to pursue
opportunities. The policy is available on www.norskeskog.com/sustainability.
Norske Skog Bruck
Photo:
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CLIMATE CHANGE IMPACTS
The materiality assessment outlined in ESRS IRO-2 identified the following
material impacts:
GHG emissions across the value chain
Norske Skog’s manufacturing processes of publication paper and container-
board products require substantial amount of energy. Part of this energy
consumption is covered by fossil energy sources which release GHG emissions.
The emissions from Norske Skog’s own operations have a negative impact on
the climate with 153
037 tCO
2
e of scope 1 emissions and 65
084 tCO
2
e of
scope 2 emissions (location-based accounting) emitted during 2025, and
660 753
tCO
2
e of scope 3 emissions emitted across the value chain over the
same period. This negative impact is a consequence of energy infrastructure
in our mills, electricity grid mixes and business relationships with suppliers
and customers. The impact occurs in the short-, medium- and long-term.
The sale of the Boyer mill on Tasmania in Australia in Q1
2025, has significantly
reduced scope 1 and 2 emissions for the group by 60%. The reduction in
Scope 1 GHG emissions is linked to the coal fired boiler at the Boyer mill and
Scope 2 emissions from electricity. Following GHG accounting requirements
on structural changes and the transfer of operations to a new owner, the Boyer
mill has been excluded from the GHG inventory.
2. Impacts, risks and opportunities
ESRS E1 CLIMATE CHANGE
Material impacts risks and opportunities
Impacts, Risks and Opportunities (IRO)
Type
Climate change mitigation
GHG emissions across the value chain
Negative impact
x
x
x
x
Norske Skog has a negative impact throughout the value chain on the climate. The upstream emission are
connected to the logging activities and transportation of wood from the forest into the mill with trucks
and train. The production process consumes large amount of heat from bioenergy and electrical power to
transform the wood log into pulp for the production of paper. Emissions from both inbound and outbound
transporters, and production process foster potential negative climate impact.
Low-emission products
Opportunity
x
x
x
x
Norske Skog has an opportunity related to the finished goods which have relative low emission level compared
to other fossil alternatives. The containerboard production will deliver packaging paper to the market and be
in direct competition with fossil plastic products. All the containerboard production in the group located in
Norske Skog Bruck and Norske Skog Golbey, are based on recycled old corrugated case material. Similarly,
the nanocellulose and biocomposites produced at Saugbrugs are based on wood logs, which is a renewable
source. The opportunity to for capturing and delivering for storage the biogenic carbon emissions will reduce
the finished goods carbon footprint and thus become more acceptable product for the consumers
Exclusion form the EU ETS market
Risk
x
x
The exclusion of the two Norwegian mills, Saugbrugs and Skogn, from the Energy Trading System (ETS) poses
a risk of severe financial impact. This exclusion of Norske Skog’s Norwegian mills will, with a CO
2
price of EUR
70, has a tentative, negative financial impact for the entire group. The share of biomass in producing heat from
the bioboiler is above 95% and is thus above the ETS qualification level. Norske Skog has politically opposed
the exclusion.
Energy
Energy consumption
Negative impact
x
x
Norske Skog’s energy consumption has negative impact on the climate. The energy is used to process
raw material into finished paper products using a mix of renewable and fossil energy sources. The energy
consumption contains several sources of energy like bio mass, production waste, natural gas and oil to
produce heat to the production process in addition to electrical power from the grid, which also has elements
of fossil sources from LNG and oil. Norske Skog’s energy intensive manufacturing processes in all mills require
substantial energy sources. Non-renewable energy sources used in production has a negative impact on the
environment.
Energy prices
Risk
x
x
Norske Skog faces a competitive risk related to fluctuations in energy prices. The energy prices in Europe are
mainly driven by supply and demand for energy. The volatility in energy prices derives from the last marginal
supply of energy, which for the last years has been the price expectations of LNG.
Upstream
Location in
value chain
Time horizon
Own operations
Downstream
Short term
Medium term
Long term
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Climate-related transition risks
How Norske Skog’s business model and/or strategy mitigate risks
Exclusion from the EU ETS market
Norske Skog’s revenue model
Policy & legal
In 2024, Norske Skog’s Norwegian business units were given
prior notice by national authorities of a potential exclusion from
the EU Emission Trading Scheme (ETS) from 2026, since more
than 95% GHG emissions are derived from biomass.
Norske Skog will have a competitive disadvantage if not being
able to receive free allowances in the period 2026 to 2030. The
phasing out of EU ETS schemes represents a financial risk that
will lead to increased operating costs.
The revenue model of Norske Skog’s Norwegian business units
is exposed to income sources linked to free allowances received
under the EU ETS which are sold in the open market.
Norske Skog needs to be defined within the EU-ETS due to the
use of not certified wood for the years 2019-2022.
Norske Skog is working directly with the Norwegian government
and indirectly through trade and industry federations to minimise
the financial impact of the exclusion.
Energy prices
Norske Skog’s strategy and revenue model
Market
Being in an energy intensive industry, Norske Skog is strongly
impacted by changes in the energy systems and its related
mechanisms. Increasing energy prices and price fluctuations is a
risk to increased operating cost.
Norske Skog need to have access to stable and predictable
energy sources. Norske Skog has invested in low-emission
energy generation in Norske Skog Bruck and Norske Skog Golbey
and will continue to evaluate opportunities going forward to
reduce exposure to low emission energy prices in the market.
Climate-related opportunities
How Norske Skog’s business model and/or strategy can realise the
opportunity
Low emission products
Norske Skog’s strategy to offer low emission products
Products
Norske Skog sees shifting consumer preferences and trends
towards low emission paper and packaging solutions as well
as bio-products. As more consumers and businesses prioritise
environmental concerns, Norske Skog will leverage this
opportunity by continuing to lower emission along the value
chain. In the long run this include Bioenergy with Carbon Capture
and Storage (BECCS).
Norske Skog has partly adapted to changing market dynamics
by investing in low-emission production processes and
products, demonstrating its commitment to environmental
stewardship. Going forward Norske Skog will continue to tap
into this opportunity and evaluate opportunities as they become
commercially viable.
The source of Scope 1 emission in the group is mainly related to the use of
natural gas and emissions from the waste-to-energy boiler at the Bruck mill in
Austria, which combined represented 85% of group scope 1 emissions in
2025. Scope 2 emissions (location based) is linked to purchased electricity.
Scope 3 emissions represent 75% of Scope 1, 2 and 3 emissions combined for
the group where transportation and distribution in the entire value chain
represent 43% of the group Scope 3 emissions.
Norske Skog mitigates its material climate change impacts by implementing
measures on reducing Scope 1 and 2 emissions from its operations through
energy efficiency measures and increasing the use of renewable energy
sources and scope 3 by engaging with up- and downstream value chain
partners, particularly transporters of wood logs for pulp production, household
waste for the energy boilers and finished goods to end-customers to address
and minimise Scope 3 emissions, acknowledging the significant role of GHG
emissions from logistics in pulp and paper industry.
Energy consumption
The production of publication and packaging paper is an energy-intensive
process. Norske Skog’s manufacturing processes in all mills require substantial
resources that can have a negative impact on the environment and people.
The energy is used to process raw material into finished paper products using
a mix of renewable and fossil energy sources. The energy consumption contains
several sources of energy like biomass, production waste, natural gas and oil to
produce heat to the production process in addition to electrical power from the
grid, which also has elements of fossil sources from LNG and oil.
Energy is used mainly for two purposes:
•
Electricity is used to separate, process and transport fibre and water. The
electricity is sourced from external suppliers. Most of the electricity is used
to mechanically convert roundwood and wood chips into fibres, called
thermomechanical pulping (TMP) process.
• Thermal energy (steam) is used for the heating and drying of paper. In
contrast with electrical energy, thermal energy is mostly generated within
the mill.
Climate change risks and opportunities
With increased focus on climate change and its implications on Norske Skog’s
current and future financial performance, Norske Skog carried out a revision
of the identified climate-related risks and opportunities following the Task
Force on Climate related Disclosure Framework (TCFD) in 2023. As part of
this process, a climate-related scenario analysis was carried out in cooperation
with CEMAsys, a Nordic ESG Consulting firm focusing on Norske Skog’s own
operations. These two processes informed the double materiality analysis
carried out in 2024, and updated in 2025.
The materiality assessment identified two material transition risks and one
opportunity.
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RESILIENCE OF STARTEGY AND BUSINESS MODEL
Norske Skog has initiated a high-level resilience analysis in relation to the
material risks and opportunities disclosed, to assess the resilience of the
strategy and business model. Non-material risk was not included in the
analysis. The evaluation is integrated into Norske Skog’s double materiality
assessment and results are discussed in annual strategy meetings and budget
plans by mill and corporate management.
The scope of the analysis focused on access to process water (physical risk)
and energy (transition risk) for all mills in our own operations, using Norske
Skog’s climate-related scenario analysis (2023) as a key source. Climate
policy and regulatory transition risk was carefully assessed focusing on
related financial impact. The value chain perspective of the resilience analysis
included sourcing of strategically important raw materials such as fresh fibre
and recovered fibre, in relevant geographies. Norske Skog has not yet
conducted a climate-related scenario analysis for sourcing of biomass, but
plan to do so in the coming years.
The results show that Norske Skog’s own operations are largely resilient to
physical climate risk due to robust infrastructure. However, impacts from
extreme weather events like flooding and water shortages may impact
operations in the long-term. Norske Skog will evaluate and implement
appropriate measures related to water withdrawal and recycling in the coming
decade to strengthen the climate resilience of own operations (ESRS E3 for
details). While physical risk is expected to have limited impact on own
operations it has the potential to materialise in specific geographies of the
value chain related to sourcing of fresh fibre in the long term. Recent
investments in containerboard production made from 100% recovered paper
target this risk and strengthen the resilience of the business model for
individual mills and the group.
In terms of transition risk related to pricing of and access to energy, the results
reflect that the resilience of Norske Skog’s business model is strengthened
based on recent capital investment in low emission energy generation at
Norske Skog Bruck and Norske Skog Golbey. These investments have
contributed to important risk mitigation related to the dependency on fossil
sources while improving the share of renewable sources in the energy mix and
avoiding long term energy pricing risk. Norske Skog will continue to evaluate
opportunities related to energy generation and efficiency going forward.
Current and future value creation of Norske Skog is mainly based on circularity,
low emission operations and products, supported by recent major capital
investment that contribute to climate change mitigation. This reflects a
business model resilient to meet global climate targets. However, the
dependency on natural resources in our business model is challenged by
stricter climate policies, both expected and unexpected. Future resilience
relies on predictability and political support to mitigate financial effects.
Despite future uncertainties related to climate policies, energy markets,
biomass and water-stress, Norske Skog has the necessary organisational
framework and priorities in place to adapt, build and maintain a climate-
resilient business model over the short-, medium- and long-term. In terms of
green financing, the group is using its unique position to evaluate possibilities
and has increased the green term loan at Norske Skog Skogn in 2025 by
NOK 400 million. The group assess additional opportunities going forward.
The time horizons applied in the analysis aligns with the time horizons of the
DMA and GHG emission reduction targets. Going forward, Norske Skog plan
to establish a robust resilience analysis in line with criteria in ESRS.
Based on the IROs identified and assessed, no major capital allocation plans,
asset write-downs, or similar measures have been made. Norske Skog group
does not have locked in GHG emissions or assets and business activities that
are incompatible with a transition to a net zero economy.
19%
Purchased goods and services
Processing of sold products
26%
Downstream transportation
25%
10%
Capital goods
2%
Fuel and energy-related activities
18%
Upstream transportation and distribution
0%
Employee commuting
Waste generated in operations
Business travel
Share of Scope 3
2025
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3. Impact, risk and opportunity management
Norske Skog’s environmental policy outlines the approach to management of
environmental performance and sustainability efforts. The policy aims to
achieve sustainability in natural resource development and environmental
management, aligning with global commitments such as the Paris Agreement
and the Montreal Agreement. The policy is addressing climate change
mitigation by including Norske Skog’s commitment to reduce GHG emission to
net zero emissions in scope 1 and 2 by 2050. By covering all emissions scopes,
the policy applies to emissions from Norske Skog’s own operations, as well as
emission upstream and downstream in the value chain.
The policy sets the direction of how to addresses key material impacts, risks,
and opportunities related to climate change mitigation and adaptation, energy
efficiency, renewable resource efficiency, pollution, water management,
biodiversity, and deforestation. Monitoring is conducted through Corporate
Standards, annual target setting, progress reviews by the board of directors,
and adherence to internationally recognised environmental management
systems. The policy is accessible to all staff through Norske Skog’s intranet.
Scope and exclusions
The policy applies across Norske Skog’s operations, including upstream and
downstream value chains, covering raw material procurement, production, and
distribution globally. Stakeholders such as employees, suppliers, customers,
and local communities are directly involved. The policy has no specific
exclusions but emphasises heightened attention in areas with material
environmental risks, such as water-stressed regions.
Senior accountability
The board of directors holds the highest accountability for policy
implementation, including setting objectives, annual target reviews, and
monitoring performance. Key leading operational personnel and business unit
managers are responsible for integrating the policy into strategic and
operational decisions. The policy undergoes regular review by the group
corporate management team, the global head of sustainability and the vice
president of communication and public affairs.
Third-party standards and initiatives
The policy incorporates commitments to third-party standards, including the
Paris Agreement, Montreal Agreement, EU’s Action Plan “Towards Zero
Pollution for Air, Water, and Soil,” and the European Sustainability Reporting
Standards (ESRS). It also promotes forest certification including PEFC and
FSC standards and prioritises certified suppliers.
Stakeholder consideration
The policy reflects the interests of key stakeholders, ensuring respect for
social and cultural values in operational regions. Norske Skog engages actively
with stakeholders through open dialogue, transparency, and collaboration,
addressing
community
concerns,
promoting
customer
environmental
objectives, and managing upstream and downstream impacts.
7%
75%
18%
Total GHG emissions
Share of scope 1, 2 ,3
Scope 1
Scope 2
Scope 3
Consumption of recovered heat
Consumption of purchased steam from renewable sources
Consumtion of self generated steam - from biomass
Consumption of purchased electricity and steam
- without energy attribute certificates (EACs)
Fuel consumption from other fossil fuels - Municipal waste
Fuel consumption from natural gas
+ 9%
1 000 000
0
2 000 000
3 000 000
4 000 000
5 000 000
6 000 000
7 000 000
2023
2024
2025
E1-5
Energy consumption and mix (MWh)
7%
6%
48%
16%
10%
13%
MWh
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ENVIRONMENTAL POLICY DETAILS
(a) Climate change mitigation
Objectives and specific targets for reducing GHG emissions and increasing
GHG removals are set periodically. Policies include plans for supplier
engagement to ensure the same environmental standards are maintained
across the value chain. Annual assessments of material risks and opportunities
are performed at the corporate and business unit levels, with reporting to the
board. The board oversees performance on climate adaptation metrics
through an environmental index system based on EU BAT (Best Available
Technologies) for our industry.
(b) Climate change adaptation
Policies address the integration of climate adaptation strategies into
operations and procurement processes. Business units receive resources for
training, emergency handling, and necessary health and safety measures to
adapt to climate risks.
(c) Energy efficiency
Energy efficiency is highly prioritised in all production units, with annual
improvement targets established for each business unit. Continuous resource
allocation ensures operational efficiency and progress toward energy-saving
goals.
(d) Renewable energy deployment
Policies emphasise resource deployment to enhance renewable energy use
across all business units. Annual objectives focus on increasing the share of
renewable energy in the company’s energy mix.
(e) Other
1. Renewable resource efficiency: Targets are set for circular raw material
usage and waste minimisation, promoting resource efficiency along the
upstream and downstream value chains.
2. Pollution management: Policies align with the EU’s Action Plan “Towards a
Zero Pollution for Air, Water, and Soil” to minimise air and water pollution.
3. Water management: Special attention is given to water-stressed areas to
reduce consumption and manage risks.
4. Biodiversity and deforestation: Policies promote forest certification and
anti-deforestation efforts through supply chain engagement. These policies
are integrated into Norske Skog’s strategic and operational decisions,
reviewed annually by the board, and aligned with stakeholder interests and
international sustainability standards.
ACTIONS AND RESOURCES
Norske Skog is committed to reducing GHG emissions for scope 1 and 2 per
tonne product by 55% by the end of 2030 with 2015 as the baseline and to
achieve net zero emissions in scope 1 and 2 by 2050. The overall approach
towards climate change mitigation in own operations focus on energy
efficiency, improving the energy mix by phasing out fossil energy sources and
investing in new business areas and low emission products. These levers
represent the key actions undertaken during the reporting year and planned
future actions to significantly reduce the group’s carbon footprint.
Actions to reduce energy consumption, Scope 1 and 2 emissions
Energy efficiency
Energy consumption and related cost is a strategic priority and carefully
managed by mill and corporate management. All Norske Skog mills have
energy efficiency programmes targeting continuous reduction in energy
consumption and improved energy efficiency. This includes utilising recovered
energy from thermomechanical pulping (TMP) process, utilising the effluent
treatment processes to produce biogas, upgrade existing process equipment
and combustion of bio-residues from the production processes.
Production of paper and containerboard based on recovered paper and old
corrugated containers (OCC) require less energy than production based on
fresh fibre because the fibre from recovered paper is more easily separated
than those within wood. As a result of the strategy to invest in containerboard
production based on recovered paper and board, Norske Skog has achieved
89% reduction in scope 2 emissions (location-based accounting) since 2015.
Divestment in mills with high share of fossil sources in the electricity mix has
also contributed to this achievement.
Another update was made in 2025 that impacted the accounting on energy
consumption and mix. In 2025 Norske Skog classified the mixed household
waste used as fuel in the waste-to-energy boiler at the Bruck mill from
renewable to non-renewable. In prior years this fuel was classified as renewable
in the internal reporting tool, in line with the classification of the EU Emission
Trading Scheme (ETS). The update has been made in compliance with
reporting requirements of ESRS and the GHG protocol. This change impacted
the share of renewable energy sources in Norske Skog’s total energy
consumption mix in the period 2022-2025. The share of renewable energy
sources increased from 35% in 2024 to 39% in 2025.
Several measures have been implemented across the group in 2025 to
improve energy efficiency.
• Norske Skog Skogn implemented project “Pulp Flex” in November 2025,
focusing on new bleaching processes while increasing the capacity of the
TMP line. The increased capacity is expected to reduce specific energy
consumption per tonne product produced and increase reuse of steam and
contribute to a reduction in annual energy consumption of 24 GWh. In
addition, the Skogn mill has in 2025 focused on stabilising and optimising
the new reboiler that was implemented in 2024 targeting reduced fuel
consumption and improved energy recovery leading to an annual reduction
in energy consumption of 25 GWh.
•
Norske Skog Golbey implemented several measures as part of their energy
efficiency plan to cut steam consumption on PM 2 including water
management modifications, temperature decrease and improved process
water heat regulation. The measures resulted in 15% reduction in steam
consumption per ton produced in 2025 compared to 2024.
• Norske Skog Bruck initiated an upgrade of the electric boiler for steam
production from 20 to 25 MWh in 2025. This enables increased steam
production when the electricity price is low and reduces the need for natural
gas for steam production.
Improving energy mix by phasing out fossil energy sources
Norske Skog’s main decarbonisation lever is to convert from non-renewable
stationary energy to renewable and low emission energy sources to reduce
Scope 1 emissions and related energy costs.
The investment in a waste-to energy boiler (WtE) at the Norske Skog Bruck mill
in Austria has been a major strategic measure for the group in phasing out fossil
energy sources as part of the conversion of PM3 to containerboard production.
The conversion started in 2022 with the construction of the fully owned on site
waste-to-energy boiler (WtE) and was finalised when the boiler reached full
production capacity in 2024. Through this investment, household waste has
replaced natural gas as the main fuel source for steam supply, contributing to an
annual reduction of 100
000 tCO
2
emissions under the EU ETS.
Similarly, The Norske Skog Golbey mill in France has undergone a major
conversion from natural gas to heat based on certified biomass, as part of the
strategic conversion of PM1 to containerboard production. Through the Green
Valley Energie (GVE) project, construction of a 125 MW biomass boiler now
supplies Golbey with steam and significantly reduce the carbon footprint of
the group by an estimated 200
000 tonnes CO
2
e/year. Green Valley Energie is
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a JV between Norske Skog (10%), Veolia (10%) and Pearl Infrastructure (80%),
and Norske Skog is the sole off taker of steam under a long-term contract.
Finally, the sale of the Norske Skog Boyer mill in Australia in 2025 had a major
impact on the group’s energy mix and transition to renewable sources in the
reporting year, due to the mill’s coal fired boiler. The mill has been excluded
from Norske Skog’s GHG inventory for all years under ownership, with effect
from 2025. This is in line with requirements for restructuring and continued
operations following GHG accounting requirements.
Measures implemented across the group in 2025 include:
•
Norske Skog Golbey’s ramp up of containerboard production and sourcing
of steam from GVE has contributed to an improved fuel mix and a 29%
reduction in gas consumption compared to 2024.
• Norske Skog Bruck started production of biogas from the anaerobic
wastewater treatment in 2024. The biogas is used as fuel in internal steam
production and contributed to reduced consumption of natural gas in 2025
due to increased production.
•
Norske Skog Bruck also commissioned a new diesel-hybrid locomotive for
their internal railway in 2025. The locomotive will run on electric power 50%
of the time and lead to a similar reduction in diesel consumption.
• Norske Skog Skogn implemented a new thermomechanical pulping line
(TMP) replacing recycled paper with fresh fibre as the raw material in
publication paper production in 2024. The related energy saving project
made it possible to cut external fuel sources and increased the use of bark,
a pure biomass from production waste, as fuel. In 2025 this contributed to
reduction of CO
2
emissions by 77% (4
000 tonnes CO
2
e/year), NOx emission
by 36% (91 tonnes per year) and ash to landfill by 57% (10
000 tonnes/year)
per year.
In 2025 Scope 1 emissions for the Norske Skog Skogn mill was updated to
include Scope 1 emissions from chemicals in sludge and fossil share of biofuel.
This led to an increase of 3200 tCO
2
e in 2023 and 60 tCO
2
e in 2024 for the
Skogn mill.
New business areas and low emission products
Norske Skog is investing in bio products made from renewable and recycled
resources, responding to growing demand and customer preferences towards
low emission products. By tracking and assessing our emission reductions, we
ensure transparency in illustrating the tangible impact of initiatives. Our focus
is to achieve measurable reductions aligned with our targets, allowing us to
assess the effect of our strategies and drive continuous improvement.
Mills located in Norway have considerable biogenic emissions related to
biomass combustion. These conditions enable potential product development
related to Bioenergy with Carbon Capture and Storage (BECCS) that can lead
to positive impact on climate change mitigation in the long run and that the
group will continue to evaluate going forward.
Measures implemented across the group in 2025 as well as future planned actions:
• Norske Skog Skogn is collaborating with Carbon Centric for developing
biogenic CO
2
capture technologies. A new carbon capture facility is being
planned at the Skogn mill with the possibility of a capture facility that will
remove around 100,000 tonnes of CO
2
per year. The captured CO
2
will
either be sent for permanent storage or used as a raw material in industrial
applications and products. The project is at an early phase and currently
undergoing an environmental assessment in accordance with Norwegian
regulations. The process is expected to take approximately two years. It is
uncertain when the carbon capture facility can start operations.
•
Norske Skog Saugbrugs: is considering restarting PM6, which was hit by a
rockslide in 2023. This will result in lower thermal and electrical consumption
per tonne. Lower thermal consumption results in lower CO
2
emissions, both
fossil and biogenic.
Actions to reduce Scope 3 emissions
The overall approach towards reducing Scope 3 emission target the largest
categories of Norske Skog’s Scope 3 emissions where mills can engage
directly with relevant suppliers and customers: category 1; purchased goods
and services, category 4; upstream transportation and distribution (includes
outbound transport to customer) and category 10; processing of sold
products.
A key decarbonisation lever related to category 1, Purchased goods and
services, is to assess operational process improvement that reduce the current
need and volume of chemicals, fillers and pigments used in production. To
further reduce emissions Norske Skog will start to integrate information about
Product Carbon Footprint and supplier specific emission reduction targets
into sourcing decisions.
Transport of incoming wood raw materials and outgoing paper and
containerboard products is transported by trucks, vessels and railway. Norske
Skog aims to reduce emissions from category 4 by moving transport of
upstream and downstream services from trucks and fossil vessels to electrical
railway and to trucks and vessels running on renewable energy sources. In the
coming years Norske Skog expect that emissions related to transport will
increase in a business-as-usual scenario due to increased production capacity
for containerboard. A key measure to reduce emissions is to engage with
transportation providers to assess alternative modes and rout optimisation.
Going forward Norske Skog will engage with customers to track actual
emissions related to processing of sold products. Several of our customers in
both the publication and containerboard market have set ambitious climate
reduction targets and are signatories of SBTi. As we start to engage with
customers and increase the share of customer specific emissions in our GHG
inventory, we expect to see an emission reduction over the next years.
A key measure to reduce Scope 3 emissions across all scopes is to improve
the quality of Scope 3 accounting by increasing the share of primary data
from suppliers, customers and business partners. Until 2025, the climate
accounting for Scope 3 emissions have relied heavily on the use of generic
emission factors from trusted sources. Throughout 2025 mills have actively
engaged with suppliers and asked for supplier specific emission factors and
product carbon footprints to improve the quality of Scope 3 emissions. These
efforts focused on the largest emission categories and individual suppliers
especially related to sourcing of non-wood raw materials like chemicals and
transportation.
Norske Skog prioritises engagement with individual suppliers that represent a
large share of Scope 3 emissions and procurement spend but is also engaging
with business partners across all Scope 3 categories. The rationale for the
prioritisation is to engage with key suppliers to efficiently cut Scope 3
emissions. This approach does also contribute to reduction of business and
climate risks related to large procurement spend with individual suppliers.
Measures implemented across the group in 2025 and future planned actions:
•
In 2025 mills have actively engaged with suppliers on supplier specific data
(product carbon footprint) to improve the quality of Scope 3 accounting
related to non-wood materials like pigments and chemicals used in
production in 2025, percentage of emissions calculated using data obtained
from suppliers of purchased goods increased to 10% (2024:0%). This led to
a decrease in emission for some material categories and decrease for others
and more accurate data.
•
Norske Skog Skogn’s main transportation provider for incoming wood, is
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Østmarka National Park
Photo: Carsten Dybevig
using electrical ferries for deliveries. In 2025 Skogn has integrated supplier
specific data, which led to a 50% reduction in emission from incoming wood
compared to 2024.
•
Norske Skog Skogn negotiated and integrated emission reduction deliveries
into the sourcing contract with the main transportation provider for finished
goods from Skogn to the ports in Europe and UK in 2022. The impact of the
investment in the vessel and update from generic to supplier specific
emissions in 2025 has led to a reduction of 63% in emissions in 2025
compared to 2024.
• Norske Skog has invested in train carriages and led a national project to
build a new timber terminal located close to the timber harvesting area in
Norway by cooperating with local authorities and business partners. This
terminal in Hauerseter, Norway, will be operative from 2029 and will serve
the entire wood processing industry in Norway. When the terminal in
Hauerseter becomes operative in 2029, this will cut our gross Scope 3
emissions from upstream transport and distribution with an estimated 20%.
ACTIONS TO REDUCE ENERGY PRICES
Mills with considerable share of power supply, have long term contracts with
electricity suppliers. This is an important element to limit exposure to volatile
energy spot markets. No mills in the group purchase Energy Attribute
Certificates (EACs) for electricity from renewable sources due to the political
position of the Norwegian trade and industry association. In 2024, the
classification of renewable sources in the electricity mix was updated in line
with the requirement of the ESRS, which classifies electricity without EACs as
electricity from fossil sources. This led to a large drop in percentage share of
renewable energy sources.
CAPITAL EXPENDITURE (CAPEX) AND OPERATIONAL EXPENDITURE
(OPEX)
In 2024, we allocated EUR 100 million towards capex and EUR 5 million
towards opex directly contributing to the achievement of our sustainability
targets, which includes investments in new refiner and heat modification at
the Skogn mill, new containerboard product line at Golbey mill including
renewable energy installations, and efficiency improvements at all the mills.
Naturally, in 2025 the allocation to capex and opex was moderate compared
to 2024 and was respectively EUR 2 and 3 million for 2025.
Future capex is projected around EUR 5 million, with opex expected to incur to
EUR 2 million annually, supporting our continued commitment to decarbonisation
and sustainability initiatives along the entire value chain. In addition to the
programmes for Scope 1 and 2, Norske Skog will pay special attention to the
scope 3 emission over the next years.
When the rail terminal for timber at Hauerseter becomes operative in 2029,
Norske Skog may handle about 200
000 m
3
through this terminal, giving an
annual savings potential of NOK 10 million.
RESOURCE ALLOCATION AND IMPLEMENTATION DEPENDENCY
Our ability to implement these actions depends on the availability and
strategic allocation of resources, including financial investments, technological
innovation, and collaboration with our partners. We are committed to
transparently managing these resources to maximise our impact on climate
change mitigation and adaptation.
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TARGET - SCOPE 1 & 2 GHG EMISSIONS
Norske Skog is dedicated to deliver growth while reducing GHG emissions.
This commitment is supported by the emission reduction goal and
environmental policy.
As part of the emissions reduction plan, Norske Skog set an intensity target in
2020 and committed to cut GHG emissions across Scopes 1 and 2 (location-
based accounting) by 55% per tonne produced before 2030, with ongoing
reductions every decade aiming for net zero emissions across Scope 1 and 2
by 2050.
In 2020, when the target was set the ambition level of this intensity target was
in line with the criteria of the Science Based Targets initiative (SBTi) and the
goal of the Paris agreement to limit global warming to 1.5 degrees
. The target
is not approved by Science Based Targets initiative (SBTi). Due to the
temporary suspension of the wood and fibre pathway by SBTi and the
anticipated publication of the GHG Protocol Land Sector and Removals
Standard and Guidance, Norske Skog has postponed commitment to SBTi. An
evaluation of SBTi commitment is planned for 2026.
Decarbonisation levers related to this target include:
• Improve energy efficiency
• Improve the energy mix by phasing out fossil energy sources in own
operations
•
Invest in new business areas and low emission products
By taking future developments into account, Norske Skog’s current emission
reduction target for Scope 1 and 2 are based on emission intensity (tonne
product produced). This approach ensures our targets are adaptive to the
future trajectory of our business model, including new technologies and
factors that may increase emissions as our business expands. We are planning
to effectively evaluate the future developments that could impact Norske
Skog, as well as understand the influence of Norske Skog’s activities.
This target was developed by corporate and mill management in 2020 and
approved by the board. External stakeholders such as customers and investors
were consulted during this process.
TARGET - SCOPE 3 GHG EMISSIONS
At the end of 2025 Norske Skog extended its climate commitment by setting
a target for emission reduction across the value chain. Norske Skog is
committed to reduce Scope 3 emissions 25% by the end of 2030 compared
with 2022.
Measures to reduce emissions focus on the largest Scope 3 categories where
Norske Skog can engage and collaborate directly with business partner up
and downstream in the value chain. These Scope 3 categories are category 1;
purchased goods and services, category 4; upstream transportation and
distribution (includes outbound transport to customer) and category 10;
processing of sold products.
Mills are actively working with suppliers and customers on identifying and
implementing levers to reduce Scope 3 emission related to these categories,
prioritising suppliers that represent large share of emissions and procurement
spend.
Decarbonisation levers on Scope 3 include:
• Move transport of incoming wood raw materials and outgoing finished
products from trucks, train and vessels running of fossil fuel to low-emission
transport modes.
• Prioritise sourcing of low emission non-wood materials like chemicals,
pigments and fillers.
• Engage with customers on emission reductions related to printing and
processing of sold products.
• Improve the quality of Scope 3 inventory by increasing the share of primary
data (supplier specific emissions)
The ambition level of the Scope 3 target is defined in line with the criteria of
the Science Based Targets initiative (SBTi). During 2026 Norske Skog is
planning to evaluate commitment to the Science Based Targets initiative
(SBTi).
TARGET PERFORMANCE – SCOPE 1 & 2 GHG EMISSIONS
In 2025 Norske Skog achieved a 66% reduction in GHG emissions intensity
(Scope 1 & 2 location-based per tonne of product compared with 2015),
meeting the 55% reduction target, five years ahead of
time. The group will
continue to reduce emissions aiming for net zero in 2050.
The equivalent reduction in absolute Scope 1 and 2 emissions in 2025
compared to 2015 is -76%. (2024: -81%). The increase in emissions from 2024
is due to direct measurement equipment installed in the waste-to-energy
boiler at Norske Skog Bruck, leading to improved data quality. Performance on
both absolute emissions and Norske Skog’s intensity target is illustrated in the
same graph later in this chapter.
Due to heavy investment in low emission energy generation Norske Skog
reached the 2030 target ahead of time. Key investments implemented include:
•
Norske Skog Bruck: Investment in low emission energy generation utilising
residual waste
•
Norske Skog Golbey: New bioenergy plant and biogas production
In 2025, Norske Skog’s absolute emissions in Scope 1 and 2 emissions
accounted for 25% of our total emissions (Scope 1, 2 and 3 combined).
Approximately 18% of these emissions are linked to the use of stationary
energy sources in our mill (scope 1), 7% is linked to sourcing of electricity from
third parties and used in the production process (Scope 2 location-based
accounting).
TARGET PERFORMANCE – SCOPE 3 GHG EMISSIONS
In 2025 Norske Skog mills have continued to work with transportation
providers and suppliers of non-wood materials targeting emission reduction
possibilities up-and downstream in the value chain. As a result, Norske Skog
achieved 10% reduction in Scope 3 emissions in 2025 compared with 2022.
OTHER TARGETS
Norske Skog has not set specific, metric targets for low emission products,
exclusion from the EU ETS markets and energy consumption and prices.
However, each mill has actions to reduce energy consumption, obtain the best
available energy price and specific for the Norwegian mill to work for inclusion
in the EU ETS market.
4. Metrics and targets
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ACCOUNTING POLICIES
SCOPE 1
Norske Skog has applied the Corporate Standard by the Greenhouse gas
protocol to measure and disclose GHG emissions for Scope 1. The reporting
boundary and consolidation approach for emissions are disclosed according
to operational control. The source of the emission factors and the global
warming potential (GWP) rates used is from the IPCC Fifth Assessment Report
(AR5 - 100 year).
All mills located in Europe are covered by EU Emission Trading Schemes (ETS)
and reporting of Scope 1 emissions follow the EU ETS methodology. 100% of
Scope 1 emissions from these European mills are covered by EU ETS.
SCOPE 2
In 2023, Norske Skog applied the location- and market-based accounting for
Scope 2 emissions, according to the GHG protocol, which was applied to data
covering 2021 to 2023 to allow for comparison. Norske Skog does not source
any Energy Attribute Certificates (e.g. Guarantees of Origin) as part of our
market-based Scope 2 accounting.
The emission factors for Scope 2 accounting covering 2021-2024 are derived
from AIB (Association of Issuing Bodies) reflecting the energy mix delivered to
the European markets and electricity purchased through the physical grid. For
location based reporting on 2025, emission factors from the International
Energy Agency (IEA) has been applied to mills in France and Austria. For mils
located in Norway we have applied emission factors from the Norwegian
Water Resources and Energy Directorate NVE (2024 and 2025). The update
of factor libraries applied in 2025 is done to improve data quality.
SCOPE 3
Norske Skog has applied the GHG protocol Corporate Value Chain (Scope 3)
Accounting and Reporting Standard to measure and disclose GHG emissions
for Scope 3.
Category 1
- Purchased goods and services: Data cover direct materials like
forest and recycling operations as well as non-wood based raw materials like
chemicals and fillers. Emissions related to purchased goods and services have
been calculated based on purchased volumes of direct materials (primary
data) and the use of generic emission factors from trusted sources (secondary
data. Emission data from suppliers of chemicals, pigments and fillers have
been integrated in 2025. Percentage of emissions calculated using data
obtained from suppliers or value chain partners: 10%.
Category 2
- Capital goods: Emissions from capital goods was added to the
Scope 3 inventory in 2024 and reported annually for 2022-25. Emissions have
been based on annual capex (primary data) and emission factors from DEFRA
(secondary data). Percentage of emissions calculated using data obtained
from suppliers or value chain partners: 0%.
Category 3
– Fuel and energy related activities (not covered in Scope 2):
Emissions have been calculated based on volumes of direct energy
consumption (primary data) and the use of generic emission factors from
Defra and the International Energy Agency (IEA). Percentage of emissions
calculated using data obtained from suppliers or value chain partners: 0%.
Category 4
- Upstream transportation and distribution: Emissions have been
calculated based on volume of goods transported (primary data), distance
travelled and the use of generic emission factors from EcoTransit (secondary
data). Outbound logistics services purchased by Norske Skog has been
categorised as upstream because they are a purchased service. This is in line
with requirements of GHG protocol technical guidance for category 4
Upstream Transportation and Distribution. Emission data from suppliers of
transportation services. have been integrated in 2025. Percentage of
emissions calculated using data obtained from suppliers or value chain
partners: 29%.
Category 5
– Waste generated in operations: Emissions have been calculated
based on transport emissions from waste materials, in line with GHG protocol
guidance. Emissions have been calculated based on transported volumes of
waste (primary data), distance travelled and emission factors for applied
transport modes from Eco Transit (secondary data). Percentage of emissions
calculated using data obtained from suppliers or value chain partners: 0%
Category 6
– Business travel: Emissions cover air travel emissions collected
from travel agencies delivering business travel services to Norske Skog
(primary data). Data reflects supplier specific reports based on fuel
consumption. Percentage of emissions calculated using data obtained from
suppliers or value chain partners: 100%.
Category 7
– Employee commuting: Emissions have been estimated based on
number of employees (primary data) and average estimated commuting
distance of 30 km per working day using a car with 180g CO
2
/km.
Category 9
– Downstream transportation and distribution: Downstream
transportation cover distribution from the printing house to the final customer
for printed magazines and printed newspaper and to containerboard
customers. Emissions have been estimated based on annual production
volume (primary data) and emission factors from published by VTT Technical
Research Centre of Finland for printed products. The emission factor is from
2010. To adjust for increase in low emission vehicles, we have applied an
assumption and deducted 20% on the emission factor. Percentage of emissions
calculated using data obtained from suppliers or value chain partners: 0%.
Category 10
- Processing of sold products: This category cover emissions
generated during the printing process and further processing and handling for
packaging paper. Emissions have been estimated based on annual production
volume (primary data) and emission factors from published by VTT Technical
Research Centre of Finland for printed products. The emission factor is from
2010. To adjust for increase in low emission vehicles, we have applied an
assumption and deducted 20% on the emission factor. Percentage of emissions
calculated using data obtained from suppliers or value chain partners: 0%.
Other Scope 3 categories; The following Scope 3 categories are not applicable
to Norske Skog’s value chain operations and therefore not disclosed; category
8 Upstream leased assets, category 11 Use of sold products, category 12 End
of Life treatment sold products, category 13 Downstream leased assets,
category 14 Franchises, and category 15 investments.
BIOGENIC EMISSIONS
Biogenic emissions in own operations are related to energy production from
biomass boilers at Norske Skog Golbey, Norske Skog Skogn and Norske Skog
Saugbrugs, and waste-to-energy at Norske Skog Bruck. Biogenic emissions
are not included in Scope 1 but reported separately. Norske Skog Skogn
entered into a two-year evaluation process with the Norwegian company
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Carbon Centric to plan for building a carbon capture facility at Norske Skog
Skogn, which may capture up to 100
,000 tonnes of biogenic CO
2
annually
from the mill’s biomass-based emissions, enabling both permanent storage
and industrial use of the CO
2
.
GHG EMISSION REDUCTION TARGET
2015 was selected as the base year, after a comprehensive restructuring of
the mill portfolio, in the calculation of the 55% CO
2
reduction target within
2030, which is congruent to evaluations done by the EU and the Norwegian
Federation of Trade and Industries.
Recalculation of base year value follow the guidelines laid down in the GHG
Protocol Corporate standard. The divestment in Norske Skog Boyer mill in
Australia did not lead to a recalculation of the target in 2025. However, the
Boyer mill has been excluded from the GHG inventory and the target in line
with the GHG accounting requirements om structural changes.
SOURCES OF ESTIMATION AND OUTCOME UNCERTAINTY
The assessment of future impacts, risks and opportunities are by nature
-subject to estimations and outcome uncertainty. In line with ESRS requirements,
the sustainability statement include forward-looking statements and
assessment of the impact of climate change on Norske Skog performance in
the short-, medium- and long-term. These forward-looking judgments relate to
potential future events that are beyond the control of Norske Skog and difficult
to predict. Norske Skog does not assume any responsibility for the accuracy of
such future-looking statements.
THIRD PARTY VERIFICATION
All of Norske Skog’s business units are certified in accordance with ISO 14001
(Environmental Management Systems). In addition, Norske Skog Saugbrugs,
Norske Skog Skogn and Norske Skog Golbey hold ISO 50001 (Energy
Management Systems) certificates. Disclosure on data and processes related
to the corresponding topics follow the standards reflected in these
verifications.
FINANCIAL EFFECTS
Norske Skog exercises the right, as per the ESRS phase-in option, to begin
reporting on this disclosure in the following years.
Base year
2015
Base year
2022
Mid term target 2030
Long term target 2050
E 1-4 GHG emission reduction target
Type
Unit
Number
Percent
Number
Percent
Number
Scope 1 + Scope 2 emissions - location based
Intensity
kg CO
2
e/tonne
product produced
466
-55%
210
-100
0
Scope 3
Absolute
tCO
2
e
735 961
-25%
551 971
EMISSION TARGET
Norske Skog Bruck
Photo: Carsten Dybevig
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ENERGY
E1-5
Energy Consumption and Mix
Unit
2023
2024
2025
% change
2024-25
Total energy consumption*
MWh
4 514 238
5 066 129
5 527 809
9%
Total fossil energy consumption
MWh
2 831 180
3 272 043
3 369 457
3%
Fuel consumption from coal
MWh
1 472
-
-
Fuel consumption from crude oil and petroleum products
MWh
6 351
3 438
16 919
392%
Fuel consumption from natural gas
MWh
250 900
420 534
404 195
-4%
Fuel consumption from other fossil fuels - Municipal waste [MWh]
MWh
314 261
283 109
320 420
13%
Consumption of purchased electricity and steam
- without energy attribute certificates (EACs)
MWh
2 258 197
2 564 962
2 627 923
2%
Share of fossil sources in total energy consumption
%
63%
65%
61%
Consumption from nuclear sources
MWh
-
-
-
Share of consumption from nuclear sources in total energy consumption
%
0%
0%
0%
Total renewable energy consumption
MWh
1 683 058
1 794 086
2 158 352
20%
Consumtion of self generated steam - from biomass
MWh
1 090 380
1 093 333
887 342
-19%
Consumption of purchased steam from renewable sources
MWh
8 352
10 583
554 326
5 138%
Consumption of recovered heat
MWh
584 327
690 170
716 685
4%
Share of renewable sources in total energy consumption
%
37%
35%
39%
Total energy production - consumed on site
MWh
1 662 593
1 738 431
1 612 369
-7%
Non-renewable energy production
MWh
572 213
645 099
725 028
12%
Renewable energy production
MWh
1 090 380
1 093 333
887 342
-19%
Energy intensity ratio - high climate impact sectors
MWh/net revenue
(NOK million)
391
498
527
6%
Discontinued operations - Total energy consumption**
MWh
1 521 616
1 560 997
390 249
*
Total energy consumption from activities in high climate impact sectors per net revenue from activities in high climate impact sectors
** Discontinued operations: estimated data for Q1 2025 based on 25% of 2024
0%
12%
9%
59%
63%
75%
73%
71%
66%
0
10%
20%
30%
40%
50%
60%
70%
80%
1 000 000
900 000
800 000
700 000
600 000
500 000
400 000
300 000
200 000
100 000
0
2015
2018
2019
2020
2021
2022
2023
2024
2025
Scope 1
Scope 2 (Location based)
2030 target
GHG EMISSIONS
Scope 1&2
EXPLANATIONS TO THE TABLE:
Scope 1
Direct emissions from owned or controlled sources
Scope 2
Indirect emissions from the generation of purchased energy
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Retrospective
Milestones and target years
E1-6
Gross Scopes 1, 2, 3 and Total GHG emissions***
Unit
2015
Base year
Scope 1
and 2
2024
2025
% change
2024-25
2025
2030
2050
Annual%
target
/base
year
Scope 1 GHG emissions
Gross Scope 1 GHG emission
tCO
2
e
265 225
109 792
153 037
39%
N/A
N/A
N/A
N/A
% of Scope 1 GHG emissions from regulated
emissions trading schemes
%
Scope 2 GHG emissions
Gross location-based Scope 2
GHG emission
tCO
2
e
653 517
63 479
65 084
3%
N/A
N/A
N/A
N/A
Gross market-based Scope 2 GHG emissions
tCO
2
e
1 394 025
1 121 586
-20%
N/A
N/A
N/A
N/A
Significant Scope 3 GHG emissions
Total Gross indirect (Scope 3) GHG emissions
tCO
2
e
681 930
660 753
-3%
N/A
N/A
N/A
N/A
1. Purchased goods and services
tCO
2
e
110 462
121 227
10
N/A
N/A
N/A
N/A
2. Capital goods
tCO
2
e
82 941
67 005
-19%
N/A
N/A
N/A
N/A
3. Fuel and energy-related activities
tCO
2
e
12 015
14 842
24%
N/A
N/A
N/A
N/A
4. Upstream transportation and distribution
tCO
2
e
157 246
118 922
-24%
N/A
N/A
N/A
N/A
5. Waste generated in operations
tCO
2
e
1 134
1 171
3%
N/A
N/A
N/A
N/A
6. Business travel
tCO
2
e
253
107
-57%
N/A
N/A
N/A
N/A
7. Employee commuting
tCO
2
e
2 441
2 441
-0%
N/A
N/A
N/A
N/A
8. Upstream leased assets
tCO
2
e
-
N/A
N/A
N/A
N/A
9. Downstream transportation
tCO
2
e
157 685
165 227
5%
N/A
N/A
N/A
N/A
10. Processing of sold products
tCO
2
e
157 753
169 811
8%
N/A
N/A
N/A
N/A
11. Use of sold products
tCO
2
e
-
-
N/A
N/A
N/A
N/A
N/A
12. End-of-life treatment of sold products
tCO
2
e
-
-
N/A
N/A
N/A
N/A
N/A
13. Downstream leased assets
tCO
2
e
-
-
N/A
N/A
N/A
N/A
N/A
14. Franchises
tCO
2
e
-
-
N/A
N/A
N/A
N/A
N/A
15. Investments
tCO
2
e
-
-
N/A
N/A
N/A
N/A
N/A
Total GHG emissions
Total GHG emissions (location-based)
(tCO
2
eq)
tCO
2
e
851 710
855 201
878 874
3%
N/A
N/A
N/A
N/A
Total GHG emissions (market-based)
(tCO
2
eq)
tCO
2
e
265 225
2 185 747
1 935 376
-11%
N/A
N/A
N/A
N/A
Biogenic emissions
tCO
2
e
571 374
521 542
-9%
N/A
N/A
N/A
N/A
GHG emissions intensity
Location-based
**
tCO
2
e/ million net
revenue (NOK)
84
84
0%
N/A
N/A
N/A
N/A
Market-based
**
tCO
2
e/ million net
revenue (NOK)
214
185
-14%
N/A
N/A
N/A
N/A
Discontinued operations
- Gross Scope 1 GHG emission***
tCO
2
e
209 721
156 536
39 134
Discontinued operations
- Gross location-based Scope 2 GHG emission***
tCO
2
e
211 720
109 332
27 333
*
N/A refers to GHG emission targets and values not applicable to Norske Skog. Norske Skog does not have absolute mission reduction targets for Scope 1 and 2, but intensity targets as presented in Target section of E1.
**
Reference to consolidated income statement, total operating income NOK 10 482 million
*** Discontinued operations: estimated data for Q1 2025 based on 25% of 2024.
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Breakdown of Scope 1 and 2 GHG
emission by business unit
Scope 1
Scope 2*
Scope 2**
Scope 3
Biogenic
CO
2
Total
Scope 1
& 2*
Share
Scope 1 & 2*
Production
Emission intensity
Scope 1 & 2*
2025
t CO2e
t CO
2
e
t CO
2
e
t CO
2
e
t CO2e
t CO
2
e
%
tonnes
kg CO
2
e/
tonne
Norske Skog Bruck, Austria
129 948
25 486
48 701
177 450
139 370
155 434
71%
361 831
430
Norske Skog Golbey, France
19 159
16 028
9 062
181 127
156 958
35 187
16%
366 729
96
Norske Skog Saugbrugs, Norway
1 956
7 831
353 431
120 112
101 239
9 787
4%
207 780
47
Norske Skog Skogn, Norway
1 973
15 740
710 392
182 064
123 975
17 713
8%
421 185
42
Total Norske Skog group
153 037
65 084
1 121 586
660 753
521 542
218 121
100%
1 357 526
161
*
Location based accounting
** Market based accounting
GHG emission intensity scope 1 & 2
kg CO
2
e/ tonne*
Business Unit
2023
2024
2025
Norske Skog Bruck, Austria
332
303
430
Norske Skog Golbey, France
155
127
96
Norske Skog Saugbrugs, Norway
30
43
47
Norske Skog Skogn, Norway
35
45
42
Total Norske Skog group
124
134
161
* Location based accounting
Norske Skog Golbey
Photo: Carsten Dybevig
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Pollution
(ESRS E2)
ASSESSMENT OF ENVIRONMENTAL IMPACTS AND STRATEGIC
RESPONSES
Norske Skog operates in the publication paper and packaging paper industry
and utilises chemicals commonly used within this sector. The company is
committed to minimising its environmental impact and ensuring compliance
with all relevant regulations. The air and water emissions are subject to strict
monitoring and compliance regulations in accordance with EU environmental
directives. Key pollutants include sulphur dioxide (SO
2
), nitrogen oxides
(NO2), carbon dioxide (CO
2
), suspended solids (SS), chemical oxygen demand
(COD), nitrogen (N), phosphorus (P) and other chemicals.
These pollutants are primarily generated as emissions from production
processes, including bio boilers used for heat generation and the discharge of
process water following paper production. Norske Skog continuously invests
in cleaner technologies and improved wastewater treatment to mitigate these
impacts. Wastewater management is a significant focus, with treatment plants
in each facility designed to minimise the discharge of pollutants into local
water bodies.
Norske Skog does not use bleaching chemicals containing chlorine at any of
its mills, thereby eliminating the creation of chlorinated organic compounds
such as AOX (adsorbable organic halides). Additionally, Norske Skog adheres
to strict sourcing policies to ensure compliance with EU regulations on
hazardous substances.
Impacts, Risks and Opportunities (IRO)
Type
Pollution of air (SOx and NOx)
Pollution of air from boilers
Impact, negative
x
x
All Norske Skog mills emit various pollutants, including volatile organic compounds (VOCs), sulphur dioxide
(SO
2
), nitrogen oxides (NOx), and particulate matter (PM), during operations linked to production of heat with
company owned boilers. The source of heat for the boilers contains a mix of renewable and non-renewable
sources. These emissions contribute to air pollution, may lead to respiratory problems and environmental
degradation.
Pollution of water
Discharge of process water
Impact, negative
x
x
The water-intensive production process of publication and packaging paper has a significant negative impact
on the climate due to the large quantities of fresh water required. Water is needed to dissolve and mix raw
materials into mechanical and deinked pulp for finished products, but only about 1% of the water is absorbed
into the final goods. The vast majority is processed through wastewater treatment plants and then discharged
back into nature, further highlighting the environmental footprint of the production process.
Upstream
Location in
value chain
Time horizon
Own operations
Downstream
Short term
Medium term
Long term
Photo: Carsten Dybevig
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POLICIES
(a) Key contents of the policy, including general objectives and material
IRO(s) addressed, as well as monitoring process
Norske Skog’s environmental policy is centred on responsibility, accountability,
and sustainability. It sets objectives for reducing environmental impact
through measures in climate change mitigation and adaptation, energy
efficiency, circular economy, pollution control, water management, and
biodiversity protection. The policy aligns with global agreements such as the
Paris Agreement and the Montreal Agreement.
Topics covered include climate change, pollution control, sustainable
resource use, and biodiversity. The policy mandates continuous improvement
and adherence to international environmental standards. Monitoring is
carried out through annual reviews by the board of directors, reporting from
business units, and corporate-level performance tracking, including the
Norske Skog Environmental Index. Business units must report severe
deviations immediately.
(b) Scope and exclusions
The policy applies to all business units and covers the entire value chain,
including raw material sourcing, production, and distribution. There are no
specific exclusions mentioned, and it extends to suppliers and subcontractors
to ensure high environmental standards throughout the supply chain.
(c) Most senior accountable level
The board of directors holds the highest responsibility for implementing the
environmental policy. The corporate management ensures its execution at the
operational level.
(d) References to third-party standards and initiatives
Norske Skog commits to the Paris Agreement (net zero emissions), the
Montreal Agreement (biodiversity), and the EU Action Plan “Towards a Zero
Pollution for Air, Water, and Soil.” The company also adheres to internationally
recognised environmental management systems and certification standards.
(e) Consideration of stakeholder interests
The policy integrates stakeholder interests by supporting customers’
environmental objectives, engaging in dialogue with local communities, and
ensuring transparency in environmental reporting. Suppliers are expected to
meet the same environmental standards as Norske Skog’s operations.
(f) Availability of the policy
The policy is communicated internally through training and reporting
mechanisms. Externally, it is available to stakeholders, including customers,
suppliers, and regulators, ensuring alignment across the value chain, and on:
https://www.norskeskog.com/sustainability/environment/environmental-policy
ADDRESSING POLLUTION, HAZARDOUS SUBSTANCES, AND
EMERGENCY SITUATIONS:
Mitigating pollution
Norske Skog aligns with the EU Action Plan on pollution reduction. The
company sets annual targets to limit air and water pollution (SOx, NOx,
particulate matter, suspended solids, and chemical oxygen demand in
discharged wastewater). Emergency response plans are in place to manage
pollution incidents and will correspondingly be reported immediately both
internally and externally. Every breach of permit is reported within 24 hours.
Avoiding and managing incidents
Preventative measures, including training and emergency preparedness, are
implemented to minimise environmental accidents. If an incident occurs,
immediate containment measures are required to reduce environmental and
human impact. Norske Skog collaborates with authorities to ensure a
coordinated response to environmental emergencies.
ACTIONS AND RESOURCES
Norske Skog Skogn took actions in 2024 to reduce pollution of air, emissions
and improve energy efficiency. The key initiative encompasses the purchase
and instalments of a new thermomechanical pulp (TMP) production line and
steam turbine, both part of the Switch project. These two projects amount to
NOK 180 million investment, including NOK 48 million in NOx Fund grants,
replaces costly recycled paper with fresh fibre, cutting costs and emissions.
Expected outcomes include an 80% reduction in CO
2
, 40% lower NOx emissions,
and a 60% decrease in ash production, aligning with Norske Skog’s
environmental goals. These efforts impact the entire value chain, improving
sustainability in raw material sourcing and reducing energy use.
The TMP line was fully operational medio 2025, with the steam turbine
following soon after. Emission reductions and energy efficiency improvements
will be monitored over the coming years. Norske Skog also continues to
address past environmental impacts by investing in cleaner technologies and
aligning with industry best practices. The Switch project highlights how
strategic investments drive both economic and environmental benefits,
reinforcing Norske Skog’s commitment to pollution prevention, sustainability,
responsible resource management.
Actions to reduce effluents to water:
•
Norske Skog Bruck has placed particular emphasis on reducing wastewater
discharge from wood-pulp bleaching, with a primary focus on lowering
chemical oxygen demand (COD).
•
Norske Skog Golbey will continue to increase the share of recycled water in
2026.
• Norske Skog Saugbrugs has experienced a negative trend in water-
discharge performance throughout 2025, and the specific COD discharge
will exceed the annual limit set forth in the permit. Actions have been
implemented to optimise the treatment plant by replacing both the granules
and equipment to increase oxygen levels in the aerobic stage of the
wastewater treatment plant.
•
At Norske Skog Skogn, the discharge levels have remained somewhat high
throughout the year, and significant local efforts have been directed
towards resolving challenges related to the wastewater treatment plant. A
key priority for 2026 is to implement additional internal cleaning and
process-water recycling through a micro flotation system. This is expected
to reduce the volume entering the wastewater treatment plant and decrease
suspended solids, thereby lowering the load on the plant and improving its
overall performance and efficiency. Norske Skog Skogn maintains an
ongoing dialogue with the Norwegian Environment Agency regarding the
condition of the wastewater treatment plant and the necessary measures.
1. Impact, risk and opportunities management
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POLLUTION-RELATED TARGETS AND MANAGEMENT APPROACH
Norske Skog has established time-bound and outcome-oriented targets to
mitigate pollution impacts and enhance environmental performance. These
targets align with our environmental policy and broader sustainability
commitments, ensuring compliance with international frameworks such as
the EU Action Plan “Towards a Zero Pollution for Air, Water and Soil.”
Targets presented in this chapter were established by Norske Skog in 2020.
Norske Skog currently have no targets in line with the ESRS. However, until
such targets have been developed, we work in accordance with the following
ambitions and milestones.
Pollution of air
Main objective: Prevent, control and reduce pollution of air from sulphur
dioxide (SO
2
) and nitrogen dioxide (NOx) from our operations.
• Target: Reach the as low as possible emission but at least below the
environmental permit given by the authorities.
•
Relevance to policy: Supports Norske Skog’s policy by reduce air pollution
from industrial processes.
•
Ambition: Ensure compliance with emission permits and regulations.
•
Activities: Perform mill activities related to SO
2
and NOx improvements.
•
Target Scope: Applies to all Norske Skog mills.
•
Measurement: Absolute reduction in tonne SO
2
and NOx emissions.
•
Base and target year: no base or target year defined.
•
Methodology: Based on scientifically validated methodologies and aligned
with EU and international climate policies.
• Monitoring & Review: Progress is tracked annually through corporate
sustainability reports.
•
The air pollution is quantified through automated measuring systems. No
data has been estimated.
Pollution of water
Main objective: Prevent, control and reduce pollution of water from our
operations.
• Target:
o Reach the as low as possible chemical oxygen demand (COD) but at
least below the environmental permit given by the authorities.
o Install anaerobic wastewater treatment and biogas at all European mills
by 2030.
•
Relevance to policy: Reduces pollution to water and improves overall water
quality by adopting sustainable water management practices.
•
Ambition: Reduce Chemical Oxygen Demand (COD) to water recipient.
•
Activities: Invest in equipment enabling target achievement.
•
Target Scope: Covers Norske Skog’s European mills.
•
Measurement: Reduction of Chemical Oxygen Demand (COD) in wastewater
discharges.
• Base and target year: base year 2020, target year 2030 for anaerobic
wastewater treatment.
• Monitoring & Review: Regular water quality assessments and compliance
with EU water regulations.
•
The air pollution is quantified through automated measuring systems. No
data has been estimated.
Pollution control and compliance measures
1. Air pollutants control: Norske Skog monitors and reduces emissions of
SOx, NOx, and particulate matter through investments in bio-boiler
efficiency and clean energy sources.
2. Water emissions control: Compliance with EU water discharge standards,
treatment plant upgrades, and ongoing water recycling initiatives.
3. Substances of concern: Norske Skog follows strict regulations on chemicals
used in production, ensuring minimal environmental harm.
Stakeholder involvement and continuous improvement
1. Stakeholder engagement: Norske Skog collaborates with industry partners,
regulatory bodies, and local communities to refine environmental targets.
2. Tracking & reporting: Performance against targets is evaluated through
sustainability disclosures, with transparent reporting on progress and
challenges.
3. Alignment with global agreements: Targets are based on EU environmental
directives, national policies, and internationally recognised sustainability
standards.
By setting these targets, Norske Skog demonstrates its commitment to
pollution reduction and environmental stewardship.
POLLUTION OF AIR, WATER AND SOIL
Emissions to air are always monitored and reported annually in the annual
report. Deviations from permits are reported directly to proper national
authority. The business units’ environmental permits will dictate the
monitoring locations, frequency and methodology and legal reporting
requirements. Norske Skog reports discharges of organic substances (COD),
discharges of suspended solids (SS), and discharge of wastewater (m
3
per
tonne of paper). In addition, Norske Skog reports on SO
2
and NOx.
POLLUTANTS
Norske Skog generates emissions to air and water through its paper
production processes. The primary pollutants include:
•
Air emissions: sulphur dioxide (SO
2
), Nitrogen oxides (NOx).
•
Water emissions: suspended solids, nitrogen and phosphorus compounds,
dissolved organic material.
• Microplastics: Norske Skog does not produce or use microplastics in its
manufacturing processes. The group’s processes focus on using natural
fibres, and there are no synthetic polymer additives in paper production.
NUMBER OF POLLUTANTS EMITTED
Norske Skog reports the following changes in emissions per facility from
2024 to 2025, in compliance with Annex II of Regulation (EC) No 166/2006:
•
Dissolved organic material (COD) increased by 48%.
•
Suspended solids (SS) increased by 90%.
•
Nitrogen reduced by 1%, and phosphorus increased by 14%.
•
The material increases in COD and SS are due to emissions at Norske Skog
Skogn that have been elevated due to fluctuating operational conditions at
the wastewater treatment plant.
CONSOLIDATION OF EMISSIONS DATA
The emissions data reported includes facilities under Norske Skog’s financial
and operational control, including Norske Skog Skogn, Norske Skog
Saugbrugs, Norske Skog Golbey, and Norske Skog Bruck. Only mills exceeding
the threshold values in Annex II of Regulation (EC) No 166/2006 are included.
CONTEXT AND METHODOLOGIES
a) Changes over time:
Emission reductions have been observed in CO
2
equivalents due to energy efficiency improvements and process optimisations.
SO
2
increased by 14% compared to 2024, but it is a total reduction in SO
2
by
2. Metrics and targets
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98% because Norske Skog Boyer is excluded from the 2025 group figures.
The total SO
2
emission in 2024 was 896 tonnes including Norske Skog Boyer;
whereas, the 2025 total SO
2
emission was 14. 2024 NOx emissions is reduced
by 20% from 2024 to 2025, which means that total NOx emissions is reduced
with 518 tonnes from 2024 to 2025 due to excluding Norske Skog Boyer, from
the figures. Norske Skog Boyer had high figures due to coal fire boiler.
b) Measurement methodologies:
Norske Skog follows EU BREF standards for
measuring emissions. Continuous monitoring systems (AMS) are in place for
air emissions. Water quality and pollutant discharge are measured using on-
site and third-party laboratory testing.
c) Data collection processes:
Data is collected from automated monitoring
systems and third-party accredited sources. Norske Skog Boyer has
implemented third-party verification for SO
2
and NOx to rectify previous
underreporting.
EXPLANATION OF METHODOLOGIES USED
Direct measurement methods are used for air and water emissions at facilities.
Indirect estimation methods are used only when continuous monitoring is not
feasible. New methodologies from accredited third-party sources have
ensured more accurate data since 2023.
UNITS AND BREAKDOWN
Emissions data is reported in tonnes. The report provides emissions on a
group level, but site-level data is available upon request. This disclosure
ensures compliance with relevant environmental regulations and Norske
Skog’s commitment to transparency in pollution reporting.
ANTICIPATED FINANCIAL EFFECTS FROM POLLUTION-RELATED IROS
Norske Skog is dedicated to disclosing the potential financial implications
arising from pollution-related IROs as part of our commitment to transparency
and sustainable operations. In 2025, there were no major financial effects
related to pollution. Going forward this section will be in line with phase-in
provisions of ESRS E2.
Norske Skog Golbey
Photo: Carsten Dybevig
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Discontinued operations
DISCHARGES OF ORGANIC SUBSTANCES (COD)
Kg per tonne of paper
0
2
4
6
8
10
12
14
2025
2024
2023
DISCHARGES OF SUSPENDED SOLIDS (SS)
Kg per tonne of paper
0.0
0.6
1.2
1.8
2.4
3.0
2025
2024
2023
DISCHARGES OF WASTEWATER
m
3
per tonne of paper
0
8
16
24
32
40
2025
2024
2023
E2-4 Pollution of air, water
Unit
2023
2024
2025
% change 2024-25
Released to air
Sulphur oxides (SO
2
)
tonnes
5
13
14
14%
Nitrogen oxides (NOx)
tonnes
758
635
510
-20%
Released to water
Chemical oxygen demand (COD)
tonnes
4 752
6 801
10 078
48%
Suspended solids (SS)
tonnes
1 137
2 030
3 854
90%
Total nitrogen
tonnes
135
162
161
-1%
Total phosphorus
tonnes
14
20
23
14%
E2-4 Pollution of air, water*
Unit
2023
2024
2025
Released to air
Discontinued operations - sulphur oxides (SO
2
)
tonnes
1 025
883
221
Discontinued operations - sulphur oxides (SO
2
)
tonnes
473
393
98
Released to water
Discontinued operations - chemical oxygen demand (COD)
tonnes
2 949
2 904
726
Discontinued operations - suspended solids (SS)
tonnes
574
671
168
Discontinued operations - total nitrogen
tonnes
114
106
26
Discontinued operations - total phosphorus
tonnes
11
10
3
* Discontinued operations: estimated data for Q1
2025 based on 25% of 2024
E2-4 POLLUTION OF AIR AND WATER
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Norske Skog Golbey
Photo: Carsten Dybevig
Water and marine resources
(ESRS E3)
1. Impacts, risks and opportunities
Impacts, Risks and Opportunities (IRO)
Type
Water withdrawal
Potential water shortage
Risk
x
x
A potential shortage of fresh water whether temporary or permanent, poses a risk to stable production in
the pulp and paper industry. Climate-driven factors such as drought, uneven rainfall, shrinking snowpacks,
and higher temperatures reduce water availability and complicate logging periods. At the same time, stricter
environmental permits and regulations on water use and wastewater discharge further limit access to this
scarce resource, threatening the long-term operational stability and financial soundness of affected mills.
Upstream
Location in
value chain
Time horizon
Own operations
Downstream
Short term
Medium term
Long term
The double materiality assessment described in IRO-1 determined the
following water and marine resources-related material impact.
Assessment of environmental impacts and strategic responses:
Norske Skog operates in the publication paper and packaging paper industry
and utilises large quantities of water in the production process. The group is
committed to minimising its environmental impact by reducing the amount of
water and ensuring compliance with all relevant regulations.
The substantial water usage in the production process poses a significant risk
of future shortages driven by climate-related factors. Paper manufacturing,
particularly for publication and packaging grades, relies heavily on water for
pulping, bleaching, and heating. Most of this usage occurs at production
facilities, especially at mills situated in regions where climate change may
increasingly constrain water availability.
The current and anticipated effects business model, value chain, strategy, and
decision-making are:
•
Water shortage risks:
o The CEMAsys resilience water availability analysis covers both short-
term (1–5 years) and long-term (10–30 years) time horizons. There is no
immediate risks of water shortage, due to water availability and regulatory
permits, while the long-term horizon considers concludes with less water
availability causing water shortage and restrictive governmental water
conservation programmes.
o Anticipated water scarcity (especially in the Norske Skog Golbey and
Norske Skog Bruck mills due to higher temperatures and drier summers)
could lead to production disruptions, forcing the company to consider
water rationing or find alternative water sourcing methods.
• Climate change and water availability: However, regions in Europe could
face higher operational costs related to water sourcing and wastewater
treatment. The water sourcing risks due to climate change, such as
increased drought and changing precipitation patterns, are a significant
challenge. Water scarcity could trigger both regulatory and operational
disruptions, particularly in regions like Golbey and Bruck. A wetter climate
in Norway reduces water risks in those locations.
Norske Skog has adopted the following response to the impact:
• Water management efforts: Norske Skog has committed to minimising
water usage and reusing more water in the production process. In Golbey,
the water usage per tonne produced is at a material lower level than the
other paper mills. The company’s environmental policy focuses on ensuring
sustainable water sourcing and waste management practices, particularly
in areas at water risk.
•
Water circularity and reuse: With a transition to a higher degree of water
circularity, Norske Skog aims to mitigate environmental risks and lower
dependence on external water source.
The material negative impact of water intensive production process will affect
people or the environment and their connection to strategy and business
model in the following manner:
1. Environmental and social impacts:
• Water scarcity and availability:
o Reduced water availability in key production areas could disrupt
operations, leading to potential layoffs or production halts. Long-term
water contamination risks could impact local communities dependent on
freshwater sources, harming both local ecosystems and human
populations.
o Climate change may lead to water shortages, affecting operations,
especially in areas like Bruck and Golbey.
• Wastewater discharge: Improper treatment of wastewater could lead to
environmental contamination, negatively affecting water bodies and marine
ecosystems near production facilities.
2. Connection to strategy:
•
The group commitment to sustainability, particularly with water and marine
resources, is directly linked to its broader strategy of improving and
optimising operations, reducing its carbon footprint, and ensuring long-
term competitiveness through eco-friendly innovations in bio-products and
renewable energy.
3. Time horizons:
• Short-term: Immediate risks from water quality issues and water rationing
are not immediate concern, although the national authorities may set forth
periodic water limitation measures.
• Long-term: As climate change intensifies, the long-term risks to water
availability and marine ecosystems could increase, leading to more stringent
regulatory requirements and operational disruptions. Only the Norwegian
mills will have more water availability in the long-term scenario contrary to
the other mills in the long-term perspective.
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The Norske Skog strategy and business model are resilient and do adequately
address impacts and risks (including opportunities).
Resilience analysis:
• Water usage:
o Norske Skog’s commitment to minimising water consumption and
improving water recycling processes enhances its resilience to water-
related risks. The ongoing efforts to develop and implement -better water
management strategies ensure the business unit’s ability to adapt to
climate-induced water shortages.
• Water availability:
o Assumes that climate change will lead to more frequent water shortages
in some regions, which will require a shift toward more closed-loop
systems and water conservation strategies.
• Time horizon for resilience:
o Short-term: Immediate focus on improving water sourcing efficiency and
wastewater treatment to comply with existing environmental regulations.
The wastewater treatment plant will have to improve circularity instead
of discharging water into the recipient.
• Long-term: Increased circularity of water will reduce water usage with an
important effect of reducing the energy needed to heat water for the
production process.
• There are no changes compared to previous period except there is an
increased awareness of water risks, particularly in areas like Golbey and
Bruck, where climate change may exacerbate droughts and water shortages,
according to CEMAsys study (2023).
The entity-specific disclosures for Norske Skog would primarily focus on:
o Water and wastewater management: Detailed reports on water usage,
wastewater discharge, and compliance with local environmental regulations.
Risks related to water availability and quality: Detailed analysis of water risks
in Norske Skog’s mills, especially considering climate change impacts (water
rationing, droughts, flooding).
Photo: Carsten Dybevig
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POLICIES
Norske Skog’s environmental policy focuses on mitigating negative impacts
from water usage, ensuring responsible sourcing, and reducing water pollution.
It targets water efficiency, wastewater management, and prevention of water
pollution from operations. The policy emphasises compliance with international
standards and continuous improvement in water management.
The policy addresses material IROs such as water consumption, sourcing, and
wastewater management. It sets targets for water efficiency and action plans
to reduce consumption, especially in water-stressed areas. The business units
collaborate with local authorities to meet legal requirements and ambitious
water permit goals where relevant.
Efficacy is monitored through regular, annual reports on water usage, wastewater
treatment, and deviations from targets, which are submitted to corporate
management. Business units are responsible for ongoing improvements and
reporting progress.
The board of directors is accountable for policy implementation, while
operational personnel ensure integration into daily activities. Norske Skog
adheres to international frameworks like the EU Water Framework Directive
and engages with stakeholders to consider their concerns.
The policy is accessible to employees through internal communications and
training, and to external stakeholders on the Norske Skog web page for
transparency and accountability.
Norske Skog’s policies address water-related issues in the following areas:
• Water management: The group aims to reduce water usage by optimising
processes and improving recovery, while ensuring responsible water
sourcing. Wastewater is treated in plants before discharge to minimise
pollution and ensure compliance with regulations.
• Commitment to reduce consumption: In water-stressed areas, the Norske
Skog plans to implement measures to ensure responsible water use due to
risk of water shortage, stricter permit levels and reduced water heating
costs.
Norske Skog’s facilities are for the time being not in high-water-stress areas,
and this is not specifically covered by the policies. However, some European
mills may in the long-term face risks due to climate change and water
availability. The group is monitoring these impacts and developing action
plans to ensure resilience and will periodically review its water management
policies.
Norske Skog’s policy promotes sustainable marine practices, focusing on
minimising impacts on marine ecosystems and ensuring responsible water
use, especially in areas where discharges affect fresh water and brackish
water bodies. Norske Skog works with both with national and local authorities
to protect marine environments.
Norske Skog integrates water and marine resource policies into its broader
environmental strategy, aiming to reduce water withdrawals, minimise
discharges, and protect aquatic ecosystems. These policies align with the EU
Water Framework Directive and the Paris Agreement’s climate goals.
Norske Skog’s policies concentrate on preserving water bodies’ quality,
reducing pollution, and safeguarding biodiversity. The company’s operations
comply with EU regulations and international standards, ensuring minimal
environmental impact. Efforts to reduce water usage and pollutant discharge
help maintain the health of surrounding ecosystems.
ACTIONS AND RESOURCES
Norske Skog has taken significant steps to mitigate the negative impact of its
water-intensive production processes and address the risks associated with
water shortages and increasing regulatory requirements. The group remains
committed to ensuring sustainable water usage through continuous
improvements in wastewater treatment, collaboration with authorities, and
strategic investments in infrastructure.
KEY ACTIONS TAKEN IN 2025 AND PLANS FOR THE FUTURE
1. Enhanced water treatment facilities:
•
Norske Skog Golbey upgraded its water treatment facility to accommodate
the new packaging paper production line. This investment substantially
increases the recycling of used water, improves the quality of treated
wastewater before discharge and ensures compliance with stricter
environmental regulations.
•
At Norske Skog Skogn, the discharge levels have remained somewhat high
throughout the year, and significant local efforts have been directed
towards resolving challenges related to the wastewater treatment plan, see
E2 for further details. Continued operational improvements in 2026 are
important to ensure full compliance and avoid potential regulatory
measures from the National Environmental Agency.
2. Collaboration with authorities for environmental protection:
• Norske Skog Skogn collaborates with national and local authorities to
protect land and marine resources in the delta of Hotranvassdraget. The
partnership with the authorities safeguards aquatic ecosystems especially
protecting the bird sanctuary.
3. Long-term climate risk mitigation measures:
•
The group recognises the risk of water shortages in areas like Golbey and
Bruck due to climate change. Plans are in place to periodically review
climate risks and implement adaptive measures such as water conservation
strategies and alternative water sourcing options.
• In areas where water abundance is expected (Norway), Norske Skog is
preparing strategies to manage excess rainfall and potential flooding that
may impact operations and raw material supply chains.
The scope of the actions covers Norske Skog’s core production activities,
primarily focusing on mills located in high-risk water areas such as Golbey and
Bruck. The measures affect to a small degree the upstream suppliers, but
affect downstream stakeholders, including local communities and regulatory
bodies, by promoting cleaner water discharge and ecosystem protection.
TIME HORIZONS AND REMEDIES
Short-term actions (2025-26) include completing water treatment upgrades
at Norske Skog Golbey, monitoring the new thermomechanical pulp line at
Norske Skog Skogn, and continuously improving wastewater treatment
efficiency. Medium-term actions (2025-2030) involve implementing further
2. Impact, risk and opportunity management
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water conservation measures in high-risk mills, upgrading infrastructure, and
maintain collaboration with authorities. Long-term actions (2030 and beyond)
emphasis on adaptation strategies for climate change-driven water shortages
and excess rainfall challenges across all mills.
Norske Skog actively manages permit breaches by working closely with
supervisory authorities to address any deviations and implement corrective
actions. The resolution of wastewater treatment challenges at Norske Skog Skogn
has led to improved water discharge quality, ensuring compliance with local
environmental standards.
PERFORMANCE
Quantitative results from 2025 demonstrate the following in wastewater
treatment:
• Discharged process water from waste-water treatment slightly increased
from 22.5 to 23.1 million m³
.
•
Organic substance discharges (COD) increased from 6
801 to 10
078 tonnes.
•
Suspended solids (SS) increased from 2
030 to 3
854 tonnes.
•
Phosphorus (Tot-P) increased somewhat but is at low levels.
•
Nitrogen (Tot-N) discharges decreased somewhat but is still at low levels.
Norske Skog Skogn accounted for more than 50% of the quantitative results
in 2024 while around 30% of the tonnes produced. The figures above do not
include Norske Skog Boyer, which has been removed for comparison purpose.
The discharged process water from waste-water treatment, including
Norske
Skog
Boyer,
was
29.7
million
tonnes
for
2024.
Including
Norske Skog Boyer, the figures in tonnes would have been for 2024: 9
704 (COD),
2 701
(suspended solids) and 298 (nitrogen and phosphores).
FINANCIAL AND OTHER RESOURCES ALLOCATED
• Norske Skog allocated substantial financial resources towards water
treatment upgrades in 2024 (about EUR 10million), particularly in Golbey
and Skogn, ensuring compliance with evolving regulations and reducing
environmental impact. The amount spent in 2025 on capital expenditures
and maintenance was around NOK 1.5 million
. Norske Skogn initiated an
internal project to improve fluctuations in the wastewater treatment plan.
• Future investments will focus on further efficiency measures, potential
water recycling initiatives, and climate adaptation strategies.
Photo: Carsten Dybevig
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TARGETS
Norske Skog’s commitment to environmental sustainability is underscored by
the establishment of robust water and marine resources-related target aligned
with international standards and regulatory frameworks. Norske Skog
currently have no targets in line with the ESRS. However, until such targets
have been developed, we work in accordance with the ambitions and
milestones described in this chapter. The risk factors being potential water
shortage and stricter permit levels will be handled individually at each mill and
will receive full attention in the long-term horizon.
However, Norske Skog aims to support UN SDG number 6 about water and
clean sanitation by improving water quality, reducing pollution, minimising
hazardous chemical releases, and adopting sustainable water management.
These efforts enhance environmental stewardship, ensure compliance, protect
public health, and support long-term sustainability.
REDUCTION OF RISK
Norske Skog continuously monitors its water usage and wastewater treatment
efficiency. The group aims for 100% of its production process waste to be
treated through wastewater systems, reducing pollution and mitigating risks
associated with industrial water discharge. Compliance with the EU Water
Framework Directive ensures that all discharged water meets regulatory
standards, protecting local ecosystems and aquatic biodiversity.
MANAGING MATERIAL IMPACTS, RISKS AND OPPORTUNITIES
Norske Skog recognises the risks posed by climate change and resource
scarcity. Freshwater availability is a critical factor in production, and climate
change-induced droughts pose a significant operational risk. To mitigate this,
the group has implemented water efficiency measures and invested in
wastewater treatment technologies. Norske Skog Saugbrugs, for instance,
collaborates with The Norwegian Institute for Water Research (NIVA) to
monitor and mitigate potential impacts on local water bodies.
METRICS
Norske Skog relies on fresh water for the production of publication and
packaging paper. Climate change-induced temperature rises are expected to
alter precipitation patterns, leading to periods of drought, inconsistent rainfall,
and shrinking water sources. This poses a business risk as it may result in
water shortages that impact production capacity and raise concerns over
industrial water usage compared to public needs. Additionally, water scarcity
could trigger ecological and biodiversity risks, leading to stricter regulations
on water usage.
WATER CONSUMPTION
In 2025, the total water consumption amounted to 1.72 million cubic meters
(m³), marking a 16% increase from the previous year due to increased production
volumes at Norske Skog Golbey during 2025 compared to 2024. For 2024, the
total water consumption, including Norske Skog Boyer, was 1.76 m³
.
The disclosed metrics and related calculation have been updated in
accordance with definitions provided in ESRS. In 2024, the disclosure has
been updated to cover the share of total input that is not discharged back into
the water recipient (river/fjord). The total water consumption cover
evaporation and water content in sold paper and containerboard products.
A substantial portion of the commitment to sustainable water management
lies in using less water but also in recycling and reusing water resources. All
Norske Skog mills recycle and reuse considerable amounts of water, equal to
~20% of the water input. This figure has been estimated as there are currently
no established KPIs to measure recycled and reused water. For 2025, it was a
target to implement tools to measure water reusage, but there is currently no
adequate measurement tools available. This will be assessed during 2026.
During 2025, Norske Skog Golbey increased the share of reused and recycled
water to 27%.
In accordance with the requirements of ESRS, we applied the Aqueduct Water
Risk Atlas tool of the World Resources Institute (WRI) to assess areas of high-
water stress. Based on this methodology, no mills are in regions of high-water
stress.
Recognising the critical role of process water in operations, Norske Skog have
implemented, and will continue to implement, further water conservation and
efficiency measures. The approach includes monitoring of water basins’
quality and quantity, adhering to established standards and methodologies for
data compilation. The data is primarily sourced from direct measurements.
In 2025, Norske Skog had total water consumption of 1.9 million litre per
million EUR net revenue in own operations. This ratio demonstrates a potential
to reduce water consumption per unit of economic output.
In addition to consumption, Norske Skog recognise the importance of water
withdrawals and discharges, metrics we have included in this chapter. These
aspects are integral to the sustainability strategy, and Norske Skog are
actively exploring ways to minimise withdrawals while ensuring responsible
discharge management. Through continued diligence and investment in water
conservation, Norske Skog aim to further reduce the environmental footprint
and contribute positively to the communities and regions where Norske Skog
operate.
ANTICIPATED FINANCIAL EFFECTS
As per the ESRS Phase-in option in ESRS E3, we will begin to report on
anticipated financial effects from water and marine resources-related IROs in
the subsequent years.
3. Metrics and targets
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E3-4 Water consumption
Metric
Unit
2023
2024
2025
% change
2024-25
Water withdrawals*
Volume
million m
3
65.1
62.7
61.2
-3%
Water discharge**
Volume
million m
3
64.4
61.3
59.5
-3%
Total water consumption***
Volume
million m
3
1.22
1.48
1.72
16%
Share of the measure obtained from direct measurement from sampling
and extrapolation, or from best estimates
Percent
%
100
100
100
0%
Water intensity ratio
Intensity
million m
3
/NOK million
0.00011
0.00015
0.00016
13%
Discontinued operations
Total water consumption****
Volume
million m
3
0.3
0.3
0.1
*
Include the sum of all sources of water drawn into the boundaries of Norske Skog including surface water, ground water, public water as well as water content in wood, pulp, DIP and chemicals.
**
Include the sum of effluents and other water sources leaving Norske Skog boundaries including discharged cooling water, treated water from effluent treatment plants.
*** Water consumption include the total amount of water drawn into the boundaries of Norske Skog and not discharged back to the water environment or a third party over the course of the reporting
period. Sources include water evaopration and water in product .
**** Discontinued operations: estimated data for Q1 2025 based on 25% of 2024.
Photo: Carsten Dybevig
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STRATEGY
In Norske Skog’s commitment to sustainable forest industry practices, we are
dedicated to aligning our business model with the global efforts to protect
and restore nature. Norske Skog will in 2026 start preparation of a transition
plan to enhancing the resilience of Norske Skog’s operations and contributing
positively to biodiversity and ecosystems.
ASSESSMENT OF IMPACTS, DEPENDENCIES, RISKS, AND
OPPORTUNITIES
Norske Skog recognises the significant impact its operations have on
biodiversity and ecosystems, especially through land and water use changes,
raw material harvesting practices, and the emissions associated with industrial
production. As a group that depends on ecosystem services like water supply,
climate regulation, and protection from natural hazards, it is essential to
understand how these impacts can trigger changes in our strategy and
business model.
1. Biodiversity and ecosystem impacts:
• Land and water use change: The demand for fresh water for paper
production and potential disruptions due to climate change such as
reduced precipitation in regions like Bruck and Golbey pose risks to the
availability of this critical resource. In addition, shifts in land use due to the
harvesting of raw materials affect local biodiversity, particularly around
forest ecosystems.
•
Raw material harvesting: Although 95% of our wood fibre is certified by FSC
and PEFC, sustainable sourcing practices are vital for ensuring the
conservation of biodiversity, preventing deforestation, and protecting
habitats.
2. Dependencies and risks:
• Resource scarcity: Overexploitation of forest resources due to climate
change, deforestation, and market volatility may impact our wood supply
chain, threaten business continuity and driving the need for more
diversified and sustainable sourcing strategies.
3. Opportunities for strategy adaptation:
• Circular economy and resource efficiency: By adopting circular economy
principles, we can reduce waste, enhance resource efficiency, and minimise
the environmental footprint. Innovations packaging also offer potential
avenues for growth while aligning with sustainable practices.
• Biodiversity conservation initiatives: Collaborating with local stakeholders,
certification bodies like PEFC and FSC, and conservation groups, especially
in Norway, allows us to enhance habitat restoration efforts and promote
sustainable forestry practices. These initiatives align with both environmental
regulations and global biodiversity targets.
As such, these biodiversity and ecosystem challenges present not only risks
but also opportunities for Norske Skog to enhance its sustainable practices,
innovate in product offerings, and strengthen its relationships with stakeholders.
RESILIENCE OF STRATEGY
1. Resilience assessment:
• Current business model resilience:
o Norske Skog’s business model is relatively resilient to biodiversity and
ecosystems-related risks, as it integrates sustainability into its core
operations through certified wood sourcing, habitat restoration projects,
and a strong focus on minimising water and energy consumption.
o However, increasing climate change risks (e.g., changing forest
conditions) and stricter regulations on biodiversity and ecosystem
services require adaptation of the model.
• Upstream and downstream analysis:
o The resilience analysis encompasses the entire supply chain, from
sourcing certified wood and managing forest habitats to the downstream
impacts of product lifecycle and waste disposal.
o Our commitment to FSC/PEFC certifications, circular economy principles,
and collaborating with local stakeholders in Norway strengthens our
supply chain resilience.
2. Scope of resilience analysis:
•
The entire value chain is considered, especially in relation to the potential
scarcity of forest resources and ecological threats such as deforestation
and soil erosion.
3. Key assumptions:
•
Forest health: Assumes continued dependence on certified and sustainably
sourced wood fibre, with increasing emphasis on forest restoration and
biodiversity conservation initiatives.
• Regulatory landscape: Assumes that global and local policies regarding
biodiversity and deforestation will become more stringent, necessitating
better traceability and reporting practices in the supply chain like the EU’s
Directive on Deforestation requiring traceability of wood log geo-location
in the finished product declaration from 2026.
4. Time horizons:
The certification bodies like PEFC and FSC will have to consider the
broader impacts of forest regeneration, climate change adaptation, and
biodiversity restoration efforts in revision of their standards.
5. Results of the resilience analysis:
• Short-term resilience is moderately high due to existing sustainability
practices and certifications, but risks related to forest resource scarcity
remain a concern.
•
Long-term resilience is dependent on proactive climate adaptation strategies,
ongoing collaboration with stakeholders, and continuous improvements in
resource efficiency and circularity. These initiatives are critical to maintaining
business continuity in the face of biodiversity and ecosystem-related risks.
6. Stakeholder involvement:
•
Indigenous and local knowledge: In Norway, Norske Skog collaborates with
local regulatory authorities and environmental agencies to ensure
sustainable water and forest management practices.
• Consultation with experts: Ongoing consultations with environmental
authorities and experts, industry associations (e.g., CEPI, TFB, FSC and
PEFC), and conservation groups ensure that Norske Skog’s strategies are
aligned with best practices and global biodiversity frameworks.
ALIGNING WITH GLOBAL INITIATIVES
In alignment with the Kunming-Montreal Global Biodiversity Framework and
the EU Biodiversity Strategy for 2030, Norske Skog commits to achieving its
biodiversity and ecosystem-related goals by 2050. Our strategy integrates
Biodiversity and ecosystems
(ESRS E4)
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climate change adaptation and biodiversity conservation into the business
model through improved resource efficiency, water management, sustainable
sourcing, and habitat restoration. By supporting global biodiversity goals,
Norske Skog aims to minimise its impact on ecosystems and align with
planetary boundaries related to biosphere integrity and land-use change.
Norske Skog is committed to maintaining transparency in reporting the
progress towards these goals and engaging with stakeholders to ensure that
the strategy remains adaptable to the evolving environmental landscape.
Norske Skog Golbey
Photo: Carsten Dybevig
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Norske Skog’s operations have notable impacts on biodiversity and eco-
systems, primarily in the operations and across the value chain. Key areas of
concern include:
1. Operations:
• All sites are linked to raw material harvesting, all of which affect local
ecosystems.
• Forest sourcing, governed by FSC/PEFC certifications, aims to mitigate
environmental risks, though poor logging practices can cause habitat loss,
species disruption, and soil degradation.
2. Upstream and downstream:
• Upstream: The sourcing of certified fibre (99%) helps reduce risks of
deforestation and forest degradation. However, climate change and
overexploitation threaten long-term fibre availability.
• Downstream: Norske Skog collaborates with customers to minimise
impacts during the product lifecycle, especially through recycling and
waste management practices.
Impacts on business model:
• Current risks:
o Sourcing of wood: Forest overexploitation and habitat loss could disrupt
supply chains, driving up costs and affecting production.
• Anticipated risks:
o Regulatory pressures: Stricter environmental regulations could raise
operational costs and harm the company’s reputation.
o Supply chain disruptions: A shortage of raw materials, driven by climate
change and deforestation, could lead to cost volatility.
• Responses:
o Norske Skog is adapting by focusing on sustainable forest management,
water system improvements, and closer collaboration with certification
bodies to safeguard biodiversity.
Effects on people and the environment:
• People: Operations may harm local communities through pollution and
deforestation, affecting health and livelihoods. Increased sourcing costs
may impact job security.
• Environment: The main environmental effects include biodiversity loss,
habitat destruction, and climate change exacerbated by deforestation.
Norske Skog’s strategy and business model:
Norske Skog’s strategy emphasises sustainability with a focus on fibre
certification, circularity, and biodiversity protection. The company integrates
biodiversity risks into its long-term planning with an eye on reducing
environmental impacts and ensuring resource availability.
• Time Horizons:
•
Short-Term (0-5 years): Immediate challenges include regulatory changes
and water scarcity.
• Medium-Term (5-10 years): Tighter certification standards and enhanced
biodiversity monitoring will shape business decisions.
•
Long-Term (10+ years): Risks like raw material depletion and water shortages
may necessitate a business model shift, potentially toward alternative bio-
products and increased finished product circularity.
The group’s environmental policy aims to ensure resilience against
biodiversity risks. Its focus on renewable energy, sustainable sourcing, and
reforestation strengthens long-term business resilience.
Main disclosures:
•
Material sites: Key sites in Skogn, Halden, Golbey, and Bruck are focused on
water management and sustainable harvesting, with specific attention
given to biodiversity-sensitive areas in proximity to the sites.
• Land degradation: Forestry practices are designed to minimise land
degradation, although unsustainable practices may still contribute to soil
erosion.
•
Impact on threatened species: The Forest Owner Association, from whom
we purchase the wood, monitors and mitigates effects on endangered
species through restoration projects in collaboration with the authorities,
certification bodies, and wildlife organisations.
These elements highlights Norske Skog’s commitment to reducing
environmental impacts while maintaining a resilient strategy that addresses
biodiversity, climate change, and resource sustainability.
2. Impacts, risks and opportunities
Impacts, Risks and Opportunities (IRO)
Type
Ecosystem services
Dependency on natural resources: sourcing of wood
Risk
x
x
Norske Skog has mills that are entirely dependent on sourcing of wood, which causes a risk due to possible
future scarcity of forest resources. The availability may be affected by overexploitation due to high demand,
deforestation issues, climate change, loss of biodiversity, erosion and high and volatile market price of wood.
Also, social conflicts, such as land use disputes, stricter environmental regulation and revised certification
mechanism will affect the sourcing of wood.
Land degradation
Degradation of land through felling of forests
Impact, negative
x
x
Norske Skog consumes large quantities of forest resources which is having a negative impact on the
biodiversity. The felling of forest has several negative impacts on degradation of land. This intensifies the
loss of carbon sequestration by reducing CO
2
absorption and releasing stored carbon. In addition, the logging
cause deforestation and thus soil erosion and loss of soil fertility. Other consequences are loss of biodiversity
and ecosystems imbalance. Without proper forest management practises, it may trigger reduced regrowth and
irreversible transformations of land.
The environment is affected by deforestation, loss of biodiversity, depletion of non-renewable raw materials, excessive use of fossil solutions. The entire value chain may meet stricter permit levels regarding logging methods, means
of transportation, production process and content of finished goods.
Upstream
Location in
value chain
Time horizon
Own operations
Downstream
Short term
Medium term
Long term
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POLICIES
Norske Skog’s environmental policy guides biodiversity and ecosystems
management, focusing on raw material sourcing, water use, pollution control,
and biodiversity preservation. The group ensures sustainability through
responsible forest management, FSC/PEFC certification, and deforestation
minimisation. Regular monitoring includes annual performance reviews by the
board, with business units tracking progress and reporting deviations. This
aligns operations with global environmental goals like the Paris and Montreal
Agreements.
The policy covers Norske Skog’s entire value chain, emphasising biodiversity-
sensitive areas near forests and water. It promotes sustainable forestry,
pollution control, and circular economy principles. All stakeholders, including
employees, suppliers, communities, and regulators, must adhere to high
environ-mental standards. The board and senior management oversee
implementation, ensuring compliance with evolving regulations like the EU’s
EUDR and ISO 14001. Norske Skog engages stakeholders through transparent
dialogue and publicly shares policy details, reinforcing employee awareness
via training programmes.
DISCLOSURES
Aligned with ESRS 2 and ESRS E4, Norske Skog’s policies address biodiversity
risks and sustainable sourcing, ensuring raw materials contribute to ecosystem
resilience. The group monitors biodiversity mitigates climate risks (water
availability, deforestation, habitat loss) and follows global sustainability
agreements. Operations in biodiversity-sensitive areas adhere to stringent
conservation and sustainable forestry standards, minimising marine and
aquatic impacts through responsible water management. Committed to zero
deforestation, Norske Skog balances economic growth with environmental
and social responsibility.
KEY ACTIONS
Norske Skog addresses one material negative impact, and one risk factor
related to biodiversity and ecosystems in the following manner:
Material negative impact: degradation of land through felling of forest
Key actions taken and planned for the future
1. Sustainable forestry practices:
• Action taken: Norske Skog has collaborated with the value chain, forest
associations, environmental organisations, and governing bodies like FSC
and PEFC to ensure responsible sourcing of wood fibre.
• Expected outcomes: Reduced impact on biodiversity in the surrounding
forests, with an emphasis on forest regeneration and ecosystem preservation.
•
Future plans: Continue strengthening partnerships with forest certification
bodies and expand monitoring of forest health in collaboration with
partners in the value chain.
•
Policy contribution: Contributes to the achievement of sustainable forestry
practices, supporting SDG 15 (Life on Land).
2. Reforestation and habitat restoration:
• Action taken: Active reforestation and habitat restoration projects have
been initiated, including transferring significant areas of birdlife habitats to
the Norwegian Environmental Agency (Skogn).
•
Expected outcomes: Restoration of biodiversity, including the protection of
endangered species. Improved carbon sequestration.
• Future plans: expand reforestation efforts, especially in areas affected by
forest harvesting.
• Policy contribution: Supports SDG 13 (Climate Action) by promoting
carbon absorption through restored habitats.
3. Wildlife monitoring and water management:
• Action taken: Regular wildlife monitoring and water quality assessments
are conducted, especially in Norway, in collaboration with the National
Authorities and Norwegian Institute for Water Research (NIVA).
•
Expected outcomes: Protection of local wildlife and improved water quality
in nearby fjords and rivers.
• Future plans: Expand monitoring efforts, focusing on water ecosystems
and long-term biodiversity impacts.
•
Policy contribution: Contributes to SDG 6 (Clean Water and Sanitation) and
SDG 15 (Life on Land).
The scope of actions covers Norske Skog’s global operations, including
facilities in Norway, France, and Austria. The focus is on sustainable sourcing
of wood fibre through certification schemes like FSC, Controlled Wood, and
PEFC. Direct stakeholders include forestry value chain partners, environmental
NGOs, local regulatory authorities, and the communities surrounding the mill
sites. Norske Skog works closely with local authorities, conservation
organisations, and community groups to support remediation efforts.
Sustainable forestry practices and reforestation are ongoing with continuous
improvements and specific milestones set for the next 3-5 years to increase
forest regeneration.
Risk factor: Dependency on natural resources: sourcing of wood
Key actions taken and planned for the future
1. Sustainable sourcing and certification:
• Action taken: 95% of purchased fibre is certified through FSC and PEFC,
ensuring that wood is sourced from responsibly managed forests.
• Expected outcomes: Reduction in deforestation and forest degradation,
contributing to the long-term sustainability of wood fibre supply.
• Future plans: Reach 100% of certified wood sources, collaborating with
forest owners in reaching the target, and strengthen partnerships with
forest certification organisations.
•
Policy contribution: Contributes to SDG 12 (Responsible Consumption and
Production) and SDG 15 (Life on Land).
2. Monitoring and enhancing raw material harvesting:
•
Action taken: Continuous monitoring of raw material sourcing and improve-
ments to harvesting practices.
• Expected outcomes: Improved environmental impact from wood fibre
sourcing and a reduction in land degradation.
•
Future plans: Expand efforts to improve sourcing practices and engage in
industry-wide initiatives to reduce overexploitation.
•
Policy contribution: Supports SDG 12 and SDG 15.
The scope of actions focuses on Norske Skog’s supply chain, particularly in
regions where deforestation and overexploitation are concerns, involving
sourcing partners, certification bodies (FSC, PEFC), and local communities
affected by forestry practices. Sustainable sourcing is ongoing with full
certification of all wood fibre by 2027, while raw material harvesting monitoring
is ongoing with incremental improvements every 2-3 years.
3. Impact, risk and opportunity management
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TARGETS
Norske Skog’s commitment to environmental sustainability is underscored by
the establishment of robust biodiversity and ecosystems-related targets
aligned with international standards and regulatory frameworks.
In 2020 Norske Skog established a set of ambitious targets to mitigate
negative environmental impacts, enhance positive contributions to bio-
diversity, and manage material risks and opportunities associated with its
operations. These targets align with the group’s environmental policy and are
designed to address its material dependencies, risks, and impacts across the
entire value chain, ensuring a sustainable and responsible approach to forestry
and paper production.
Norske Skog currently have no targets in line with the ESRS. Our ambition was
to establish such targets during 2025, but this process was postponed until an
internal framework is in place. Until such targets have been developed, we
work in accordance with the ambitions and milestones described in this
chapter.
REDUCTION OF NEGATIVE IMPACTS
Norske Skog has committed to ensuring that 100% of the wood used across all
mills is certified under internationally recognised schemes such as FSC and
PEFC. This target directly supports the group’s policy objectives by promoting
sustainable forestry practices, reducing deforestation risks, and preserving
biodiversity. The baseline for this target was set in 1995, with the goal of
achieving full compliance by 2030. This commitment applies to all mills,
including Norske Skog Skogn, Norske Skog Golbey, Norske Skog Bruck,
Norske Skog Saugbrugs, ensuring sustainable sourcing and minimal
ecosystem disruption.
To further limit negative environmental impacts, Norske Skog has set a goal of
sending zero ash to landfill by 2030. This absolute target is measured in
tonnes of ash diverted from landfills and is part of the company’s broader
circular economy efforts.
ENHANCING POSITIVE IMPACTS
Norske Skog actively contributes to ecosystem restoration through habitat
conservation initiatives. The company has undertaken reforestation projects
and habitat restoration efforts in partnership with organisations such as FSC
and PEFC. At Skogn, a significant birdlife area has been transferred to the
Norwegian Environmental Agency, demonstrating Norske Skog’s commitment
to preserving biodiversity in industrially affected regions.
MANAGING MATERIAL IMPACTS, RISKS AND OPPORTUNITIES
The group also acknowledges the risk associated with forest resource
availability due to overexploitation and regulatory changes. By securing long-
term agreements with certified suppliers and prioritising PEFC/FSC-certified
wood, Norske Skog aims to minimise exposure to sourcing risks and ensure
sustainable supply chains.
STAKEHOLDER INVOLVEMENT AND SCIENTIFIC BASIS
All targets set by Norske Skog are based on conclusive scientific evidence and
aligned with international environmental frameworks, including the Paris
Agreement and the Montreal Agreement. The group engages with stake-
holders, including investors, regulators, and environmental organisations, to
ensure that targets are robust and feasible. Targets are monitored through
regular internal audits, third-party verifications, and annual reporting.
By setting these ambitious goals, Norske Skog aims to balance industrial
growth with environmental responsibility, ensuring that its operations
contribute positively to biodiversity conservation while mitigating climate
risks and resource dependencies.
4. Metrics and targets
Performance metrics and targets in tabular format
Measurement unit
Target level
Target year
Baseline value (year)
Current progress
% of certified wood used
100%
2025
98% (2023)
99% achieved
Tonnes of ash sent to landfill
0
2030
Baseline (2022)
28 338
tonnes
% of production waste treated
100%
Continuous
Not relevant
Compliant with EU standards
m³ per tonne of paper
Reduced water use
Continuous
Not relevant
Implemented at all mills
Planned and allocated resources
To support the implementation of these actions, Norske Skog allocates
dedicated financial and operational resources across its business units,
including investments in sustainable sourcing systems, certification processes,
and environmental monitoring technologies. Operational budgets ensure
continuous compliance with certification standards such as FSC and PEFC.
The company also invests in data collection and digital monitoring tools to
track water quality, enabling more informed decision-making and transparency
in reporting. Human resources include specialised environmental experts,
sustainability managers, and procurement teams working closely with
suppliers to ensure alignment with environmental standards and long-term
resource availability.
The company actively collaborates with National Pulp and Paper Associations,
environmental NGOs, research institutions, and Forest Owner Associations to
strengthen ecosystem protection and sustainable forestry. In addition, Norske
Skog engages with local communities and authorities to ensure responsible
land use and to support shared environmental objectives.
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METRICS
Norske Skog consumes large quantities of forest resources, which has a
notable impact on climate and land degradation. The logging of forests
reduces carbon sequestration, leading to increased CO
2
emissions and stored
carbon release. Additionally, deforestation contributes to soil erosion, loss of
soil fertility, biodiversity loss, and ecosystem imbalances. If not mitigated
through sustainable forestry practices and climate action, this could lead to
reduced regrowth rates and irreversible transformations of land.
Risk: Availability of forest resources
Norske Skog’s mills are dependent on a consistent supply of wood. The
availability of forest resources is threatened by overexploitation, deforestation,
climate change, biodiversity loss, erosion, and fluctuating wood prices. Social
conflicts, such as land use disputes, stricter environmental regulations, and
revised certification mechanisms, could further impact sourcing, making it
more challenging to secure sustainable raw materials.
NORSKE SKOG’S APPROACH TO BIODIVERSITY AND ECOSYSTEM
CONSERVATION
Norske Skog acknowledges the impact of its global operations and associated
value chain on biodiversity and ecosystem services. The primary drivers of
nature loss related to its business include land and water use changes, climate
change, pollution, and raw material harvesting practices. The group is
responsible for managing ecosystem risks within its operations and broader
business activities.
Stricter regulations on biodiversity and ecosystems could impact Norske
Skog’s financial standing, increase costs and potentially affect investor
confidence. As a result, Norske Skog follows stringent national and international
laws to minimise its environmental footprint.
BIODIVERSITY MANAGEMENT BY REGION
Halden, Skogn, and Golbey:
•
Implementing sustainable forestry practices in collaboration with FSC and
PEFC to ensure responsible wood sourcing and habitat preservation.
• Engaging in reforestation and habitat restoration projects, including
transferring significant land areas to environmental agencies.
• Conducting regular wildlife impact assessments and implementing
mitigation measures as necessary. Monitoring of water recipients is carried
out in accordance with the EU Water Framework Directive.
Bruck:
• Following strict environmental management systems that integrate
biodiversity conservation into operational practices.
•
Collaborating with local conservation organisations to identify and protect
biodiversity hotspots.
REPORTING AND MONITORING OF BIODIVERSITY IMPACTS
To ensure transparency and accountability, Norske Skog discloses material
biodiversity impacts through verifiable and scientifically robust metrics. The
company assesses its operations in proximity to some few biodiversity-
sensitive areas and implements strategies to minimise negative effects Norske
Skog reports the status annually.
Ecosystem monitoring, reporting, and stakeholder dialogue
Norske Skog monitors biodiversity and ecosystem conditions in areas adjacent
to the operations, including Tistadalen in Halden and the Hotran river delta in
Skogn. In Tistadalen, particular attention is given to the river ecosystem,
recognised as a salmon river, as well as surrounding deciduous forest habitats.
Monitoring activities include regular assessments of water quality and the
status of forest ecosystems. In Skogn, the bird habitats surrounding Hotran
river delta are subject to ongoing observation, with a focus on preserving
biodiversity and maintaining suitable conditions for birdlife.
The company maintains continuous dialogue with both central and local
authorities regarding the environmental status of these areas. Norske Skog
systematically follows up on this dialogue, ensuring that any regulatory
requirements or recommended actions are implemented and tracked over
time. The status of ecosystems is regularly reviewed enabling adaptive
management and supporting transparent reporting in line with biodiversity-
related sustainability objectives.
METHODOLOGIES AND ASSUMPTIONS
• Metrics and scope: Norske Skog applies internationally recognised
methodologies to assess biodiversity impact, covering corporate business
units, site-level operations, and raw material sourcing.
• Data reliability: The group relies on a mix of primary, secondary, and
modelled data sources, supplemented by expert judgment.
•
Regulatory compliance: Metrics are aligned with EU biodiversity directives,
FSC, PEFC certifications, and other relevant environmental regulations.
• Monitoring and adaptive management: Biodiversity data is updated
continuously, ensuring adaptive strategies are implemented to mitigate
identified risks.
BIODIVERSITY BASELINE AND THRESHOLDS
Norske Skog establishes biodiversity baselines based on planetary boundaries
and ecological thresholds. Continuous monitoring ensures that any significant
environmental changes are addressed through adaptive management. The
group works with regulatory agencies, scientific institutions, and industry
associations to maintain compliance and improve biodiversity conservation
efforts.
By integrating biodiversity management into its long-term sustainability
strategy, Norske Skog aims to mitigate negative environmental impacts while
ensuring responsible forest resource utilisation. Norske Skog’s commitment to
100% certified wood sourcing, and habitat restoration, underscores its
proactive approach to biodiversity conservation.
FINANCIAL EFFECTS
Norske Skog exercises the right, as per the ESRS Phase-in option, to postpone
reporting on this disclosure later.
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1. Impacts, risks and opportunity management
Resource use and circular economy
(ESRS E5)
Impacts, Risks and Opportunities (IRO)
Type
Resource inflows including use
Utilisation of renewable and recycled resources in production of products
Positive impact
x
x
x
Norske Skog has mills that are entirely dependent on sourcing of wood, which causes a risk due to possible
future scarcity of forest resources. The availability may be affected by overexploitation due to high demand,
deforestation issues, climate change, loss of biodiversity, erosion and high and volatile market price of wood.
Also social conflicts, such as land use disputes, stricter environmental regulation and revised certification
mechanism will affect the sourcing of wood.
Availability of recycled fibre for production of products
Risk
x
x
Because the authorities' climate change policy encourages use of recycled fibre in the production of paper
products, it is a risk that there will be scarce availability at sustainable price level to produce paper products
due to the purchasing power of our customers. Also, the use of recycled fibre may find other alternatives to
paper products causing scarcity.
Resource outflows related to products and services
Production waste
Negative impact
x
x
x
Waste generated from the pulp and paper production process can have significant environmental impacts
if not properly managed. Landfilling production waste, such as bark, sludge, and ash, can contaminate soil
and water, release harmful substances into ecosystems, and produce methane from decomposing organic
matter, contributing to climate change. Improper disposal can also disrupt local biodiversity. At the same
time, waste presents opportunities for resource recovery. Norske Skog’s waste management strategy focuses
on minimising landfill disposal and maximising reuse, repurposing most of the production waste for energy,
construction materials, or agricultural use. By improving processes and recovery methods, the company seeks
to reduce environmental impact and transform waste into valuable resources.
Upstream
Location in
value chain
Time horizon
Own operations
Downstream
Short term
Medium term
Long term
Norske Skog’s commitment to sustainability and circular economy principles
is deeply embedded in its business model, operations, and upstream and
downstream value chains. The group’s use of renewable and recycled
resources, waste-to-energy initiatives, and waste utilisation for product
development contribute significantly to reducing its environmental footprint
while enhancing economic efficiency. However, there are also risks associated
with the availability of recycled fibre for production due to market demand and
policy influences.
Through strategic attention on optimising raw material use, energy efficiency,
and waste reduction, Norske Skog demonstrates a strong commitment to
sustainable business practices. The approach ensures resilience to external
risks while reinforcing its competitive position in the evolving global market
for renewable and recycled materials.
POLICIES
Norske Skog’s resource use and circular economy policy is designed to reduce
environmental impact by increasing the use of recycled and renewable
resources. Implementation is closely monitored through environmental
management systems and annual sustainability reporting to ensure continuous
improvement.
The policy applies to the entire value chain, encompassing raw material
sourcing, production processes, and end-of-life product management. All
business units are required to comply with resource efficiency guidelines, and
there are no significant exclusions from this policy.
Accountability for the policy rests with the board of directors, which provides
oversight, while corporate management is responsible for its implementation
at the operational level. Norske Skog aligns its practices with internationally
recognised third-party standards, including ISO 14001, FSC, PEFC, and the
EU’s Zero Pollution Action Plan, ensuring adherence to best environmental
practices.
Stakeholder engagement is a critical component of the policy. Norske Skog
actively collaborates with governmental bodies, NGOs, suppliers, and
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customers to align interests and drive sustainability improvements across the
industry. To maintain transparency, the policy is publicly available through
sustainability reports and corporate documentation.
A key aspect of Norske Skog’s sustainability strategy is the transition from
virgin to recycled resources and sustainable sourcing. Norske Skog
continuously enhances its recycling processes to increase the use of
secondary fibres and reduce dependence on virgin materials. Additionally,
Norske Skog ensures that all raw materials come from sustainably managed
forests, with a strong preference for FSC- and PEFC-certified wood.
To address material impacts, risks, and opportunities (IROs) throughout the
value chain, Norske Skog prioritises sustainable forestry practices and
responsible supplier selection upstream. Within the operations, Norske Skog
emphasises waste minimisation and circularity in production. Downstream,
Norske Skog works to improve the recyclability of its finished products and
actively promotes customer participation in circular initiatives.
Norske Skog adheres to the principles of the waste hierarchy, focusing first on
waste prevention through efficient material use. Norske Skog encourages the
reuse of byproducts wherever possible and maximises fibre recovery through
recycling. Waste-to-energy initiatives further contribute to resource efficiency,
while disposal is treated as a last resort to minimise landfill impact.
Circular economy principles are deeply embedded in Norske Skog’s operations.
Norske Skog prioritises material repurposing over recycling to extend product
life cycles and designs eco-friendly products that enhance recyclability and
circularity. Through these efforts, Norske Skog reinforces its commitment to
sustainability, ensuring resource efficiency and a reduced environmental
footprint across its entire value chain.
ACTIONS AND RESOURCES
Norske Skog is committed to optimising resource use and advancing circular
economy principles throughout its operations. Norske Skog has undertaken
several key actions to achieve its sustainability objectives, focusing on
increasing the utilisation of renewable and recycled resources, minimising
waste, and maximising resource efficiency across the value chain.
One of the primary initiatives is the increased use of renewable and recycled
materials in the production of its goods. By integrating these materials, Norske
Skog effectively reduces its carbon footprint while supporting a circular
economy where resources are reused, thereby lowering the demand for virgin
raw materials. This practice also mitigates environmental contamination by
reducing landfill waste. Norske Skog has observed a growing market demand
for products derived from recycled and renewable sources, particularly as
governmental policies impose tariffs on fossil-based alternatives. By meeting
this demand, Norske Skog actively contributes to climate mitigation efforts by
reducing reliance on high-carbon-footprint materials.
Another key initiative involves utilising waste as an energy source for both
Norske Skog’s operations and local communities. By repurposing production
waste, including bark, gas, and materials from wastewater treatment plants,
Norske Skog ensures that waste serves as a valuable energy source rather
than contributing to landfill accumulation. This practice aligns with Norske
Skog’s sustainability commitments by preventing environmental degradation
and reducing harm to ecosystems. Similarly, Norske Skog is utilising waste
materials for product development, particularly through the production of
biogas and the repurposing ash generated by energy plants to replace a
portion of traditional cement in construction materials. This approach not only
reduces emissions but also minimises the demand for materials with a high
carbon footprint, such as traditional cement.
Despite these positive initiatives, Norske Skog acknowledges the risk
associated with the availability of recycled fibre for production. Climate
change policies encourage increased use of recycled fibres in paper
production, potentially leading to supply shortages and unsustainable price
levels. Additionally, alternative uses for recycled fibre could divert resources
away from paper production, exacerbating the scarcity issue. Norske Skog
continuously monitors market conditions and collaborates with industry
partners to mitigate these risks.
To implement and sustain these initiatives, Norske Skog has established
Corporate Standards with detailed environmental and societal performance
improvement guidelines. Environmental considerations are integrated into
strategic and operational decisions, with oversight provided by the board of
directors. Business units are tasked with implementing actions that align with
energy efficiency and resource utilisation targets, ensuring that production
processes remain efficient and environmentally responsible.
A core focus of Norske Skog’s sustainability strategy is maintaining high yield
efficiency in raw material and energy use. All raw materials are sourced from
sustainably managed forests, with rigorous certification standards in place to
ensure compliance. Norske Skog actively participates in climate change
mitigation efforts by promoting circularity in raw materials, finished goods,
and waste resources. By investing in innovative recycling and energy recovery
technologies, Norske Skog is enhancing its environmental performance while
supporting industry-wide sustainability advancements.
Norske Skog commits to resource use optimisation and circularity, emphasising
key achievements such as recycling approximately 75% of its finished goods
one of the highest rates within the EU. Norske Skog has also begun producing
containerboard exclusively from recycled paper and developing bio-
composites to replace fossil-based plastics. Additionally, its energy recovery
initiatives have allowed it to reuse production waste efficiently, with sludge
from wastewater treatment plants repurposed as an energy source for bio-
boilers.
Looking ahead, Norske Skog will continue to implement and expand its circular
economy initiatives, including further investments in renewable energy
deployment, waste recovery, and sustainable material sourcing. Norske Skog
aims to identify new applications for ash generated in its energy plants to
reduce landfill disposal. By adhering to its sustainability commitments and
continuously improving its environmental performance, Norske Skog
reinforces its leadership in sustainable resource management and circular
economy innovation.
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TARGETS
Norske Skog has set ambitious targets aligned with our commitment to
resource efficiency, circular economy principles, and sustainability relating to
the three IROs. These targets serve as guiding benchmarks to reduce negative
impacts, drive positive impacts, mitigate risks, and foster innovation across
our operations and throughout our value chain.
In 2020, Norske Skog established targets to reduce negative environmental
impacts, advance positive contributions, and manage material risks and
opportunities within its operations. These targets align with its resource use
and circular economy policies and are fundamental in ensuring sustainable
and responsible operations across all business units. No new targets have
been defined in 2025. Norske Skog currently have no targets in line with the
ESRS. However, until such targets have been developed, we work in accordance
with the ambitions and milestones described in this chapter.
RECYCLED FIBRE
One of the primary targets is to achieve 100% recycled fibre as raw material in
packaging paper products. This initiative supports Norske Skog’s commitment
to circular economy principles, reducing dependency on virgin raw materials
and lowering the carbon footprint of production. The scope of this target
applies to all packaging paper production across Norske Skog’s operations,
and progress is measured relative to current levels of recycled fibre usage.
The baseline for this target is derived from prior years’ data on fibre sourcing,
with full achievement anticipated by a defined milestone year. Norske Skog
will scale up production to reach full capacity of 760
000 tonnes of packaging
paper by 2027, all based on recycled fibre.
CERTIFIED WOOD
Another key target is to ensure that 100% of the wood used in Norske Skog’s
mills is certified. This objective relates to sustainable sourcing and the
cascading principle of renewable resource use. The certification process
guarantees that all fresh fibre originates from responsibly managed forests, in
alignment with national and international sustainability goals. The scope
includes all mills utilising fresh wood fibre, with Chain of Custody certification
systems in place to track compliance. The baseline is Norske Skog’s current
99% certification level, with the goal of reaching full compliance.
WASTE MANAGEMENT
•
Ash: In addressing waste management, Norske Skog aims for zero ash sent
to landfill. Instead, ash will be repurposed for industrial applications, such as
cement substitution and agricultural use. This initiative falls within the
waste hierarchy principles, prioritising reuse and recycling over landfill
disposal. Currently, 34% of ash is still landfilled, but Norske Skog is working
to identify new applications and align with regulatory frameworks to
minimise this percentage over time.
•
Waste production process: The group has also committed to ensuring that
100% of production process waste undergoes wastewater treatment. This
measure enhances environmental performance by preventing contamination
and supporting the recovery of valuable materials such as biogas. The
initiative is absolute in nature and applies to all Norske Skog mills globally,
with a clear methodology in place for monitoring and reporting compliance.
BUILDING MATERIAL
Another crucial target is that all inbound building materials to energy plants
must be certified. This ensures responsible sourcing and aligns with national
and EU sustainability policies. Norske Skog collaborates with suppliers and
stakeholders
to
guarantee
compliance,
reinforcing
transparency
and
accountability in the supply chain. The certification process helps minimise
environmental risks and aligns with broader sustainability initiatives in the
industry.
REPORTING
Norske Skog monitors the effectiveness of these targets through structured
evaluation processes, including internal audits and external third-party
verifications. Progress is internally reported periodically and external reporting
annually, ensuring transparency and alignment with environmental policies.
Metrics and methodologies are refined based on internal system data,
regulatory requirements, and stakeholder expectation to ensure continued
progress toward sustainability objectives.
These targets are a combination of mandatory and voluntary commitments,
with certain initiatives driven by regulatory expectations and others by Norske
Skog’s ambition to lead in sustainable resource management. By integrating
these goals into the production, sourcing, and waste management practices,
Norske Skog reinforces a role in fostering a circular economy and mitigating
climate change impacts.
RESOURCE INFLOWS
Norske Skog is committed to responsible resource use, ensuring that raw
materials are sourced sustainably while optimising efficiency throughout the
production process. The primary inputs in our operations include fresh wood
fibres, sawmill chips, recovered paper, purchased pulp, and inorganic fillers or
coatings. These materials are sourced through a combination of direct
procurement from certified suppliers and the integration of secondary
materials to support a circular economy. The group prioritises the use of
certified wood, with 99% of roundwood fibres and sawmill chips originating
from sustainably managed forests under FSC and PEFC certification schemes.
This commitment supports biodiversity preservation and reduces the
environmental impact associated with raw material extraction.
The methodologies used to determine resource inflows are based on direct
measurement, supplier certifications, and verified tracking systems. Fibre
sourcing is conducted through a Chain of Custody (CoC) certification process
that ensures compliance with international sustainability standards. The use
of recovered paper and secondary materials is integral to Norske Skog’s
strategy to reduce dependency on virgin resources. In 2025, 0
.8 million
tonnes of recovered paper were used, contributing significantly to the
circularity of the production process. Additionally, sawmill chips accounted for
10% of fresh fibre inputs, promoting resource efficiency by utilising industry
by-products.
The total material usage in Norske Skog’s operations during the reporting
period was 1.5 million cubic meters of fresh fibre (0.62 million tonnes),
supplemented by 0.8 million tonnes of recovered paper
. The overall weight of
inorganic fillers and coatings utilised was 144
960 tonnes. The breakdown of
material inputs per mill highlights variations based on geographic location,
production capacity, and available resources. For instance, the Norske Skog
Skogn mill processed 945
000 million m
3
(382 553
bdt) cubic meters of
roundwood, whereas Norske Skog Golbey relied entirely on recovered
paper as a fibre source. Such diversity in input sourcing aligns with Norske
Skog’s strategic objective of minimising transport distances and optimising
material use.
3. Metrics and targets
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A key component of Norske Skog’s sustainability approach is the transition
towards greater use of recycled materials in packaging paper production.
Norske Skog has set ambitious targets, including achieving 100% recycled
fibre in its packaging paper products and ensuring that all wood used is
certified. This aligns with broader industry goals and regulatory frameworks
aimed at reducing reliance on virgin materials and enhancing circularity. The
integration of nanocellulose and bio-composites into production at the Norske
Skog Saugbrugs mill further exemplifies innovation in sustainable material
use, substituting fossil-based plastic materials with renewable alternatives
that can be recycled and reused.
In terms of material sustainability, the proportion of secondary or recycled
materials in Norske Skog’s production processes is substantial. The average
recycling rate for finished goods stands at approximately 75%, the highest within
the EU according to CEPI figures. Additionally, containerboard production is
exclusively using recovered paper, reinforcing the group’s commitment to a
circular economy. Methodologies for assessing material use include supplier
declarations, third-party certifications, and internal tracking systems that
provide accurate and verifiable data. As Norske Skog continues to innovate and
implement sustainability measures, resource efficiency and material circularity
remain core priorities driving its environmental performance.
RESOURCE OUTFLOWS
Norske Skog is committed to optimising resource use and fostering a circular
economy in its operations, ensuring that material flows are effectively managed
to minimise waste and maximise recirculation. The company’s approach is
centred on efficient utilisation of raw materials, sustainable product design, and
continuous process improvements. By integrating circularity principles into
production, Norske Skog enhances resource efficiency, reduces waste, and
promotes sustainability throughout its value chain.
RESOURCE OUTFLOWS AND MATERIAL BREAKDOWN
The primary products of Norske Skog’s production processes are publication
paper and packaging paper, both of which are designed with circularity in
mind. In 2025, Norske Skog produced 1
357 526
tonnes of paper (excluding
56 257
tonnes at Boyer), utilising 1
133 739
m³ (459
004 bdt) of roundwood,
391 706
m³ (158
586 bdt) of sawmill chips and 23
745 bdt of pulp, with a
certification rate of 99%. Additionally, 752
829 tonnes of recovered paper,
including waste paper and old corrugated cartonboard (OCC), were used as
raw material, ensuring significant contributions to circularity. By leveraging
both fresh fibre and recovered paper, Norske Skog balances sustainability
with operational efficiency. The company also consumes 121
751 tonnes of
inorganic fillers or coatings, which contribute to paper quality and performance.
A key aspect of Norske Skog’s commitment to circularity is the recycling and
reuse of production residues. Approximately 58% of the waste generated in
2025 was repurposed as biofuel in bio boilers, significantly reducing reliance
on fossil fuels. The sludge from wastewater treatment plants serves as an
energy source, and ash from bio boilers is repurposed for use in cement and
fertiliser applications. The ash generated from the combustion process
totalled 84
127 tonnes, with efforts underway to find additional applications
to reduce landfill dependency.
CIRCULARITY IN PRODUCT DESIGN AND WASTE MANAGEMENT
STRATEGY
Norske Skog employs circular principles in its product design, ensuring that
finished goods are recyclable and reusable. Norske Skog collaborates with
partners in the upstream value chain, forest owner’s suppliers, and other
industry suppliers to improve forest management and increase the share of
certified fibres. The production of containerboard exclusively from recycled
paper products proves to Norske Skog’s dedication to sustainability. On
average, 75% of Norske Skog’s finished goods are recycled, making it one of
the highest recycling rates in the European market according to the European
Paper Recycling Council (EPRC) in 2024.
Norske Skog’s waste management strategy focuses on minimising landfill
waste and maximising resource recovery. In 2025, only 8% of total production
waste was sent to landfill, with the remainder repurposed for energy,
construction materials, or agricultural use. Norske Skog generated 427 tonnes
of hazardous waste, which was disposed of through authorised national
collection systems. The company aims to further reduce hazardous waste
through process improvements and enhanced resource recovery methods.
METHODOLOGIES AND REPORTING METRICS
Norske Skog employs rigorous methodologies to assess and report on
circularity and waste management. Norske Skog adheres to internationally
recognised certification standards, including ISO 9001 and 14001, ensuring
compliance with environmental regulations and industry best practices. Waste
and emissions data are collected through direct measurement at production
facilities, with periodic audits to verify accuracy.
By continuously refining methodologies and investing in sustainable
technologies, Norske Skog is well-positioned to achieve its targets of 100%
certified wood usage, zero ash to landfill, and complete integration of
production waste into circular systems. Norske Skog remains committed to
fostering a more sustainable and resource-efficient paper industry.
ANTICIPATED FINANCIAL EFFECTS
Norske Skog exercises the right, as per the ESRS Phase-in option, to postpone
reporting on this disclosure.
1.5
mill m
3
wood
0.6
mill tonnes
other
30%
10%
2%
50%
8%
CONSUMPTION OF RAW MATERIALS
Roundwood
Wood chip
Pulp
Waste paper
Fillers/coating
247 651
tonnes
waste
57%
34%
9%
SOURCES PRODUCTION WASTE
Sludge
Bark
Other
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Explanation to the diagram:
The highly simplified diagram above illustrates the paper production process.
Main input materials are wood, recovered paper and old corrugated container-
board (OCC), as well as energy and chemicals. Wood and recovered fibres are
separated during pulp production in two different processes.
Pulp production based on recovered paper and old corrugated containers
(OCC) consume less energy than production from fresh fibre because the
fibres in recovered paper and OCC are more easily separated than those
within wood. In the paper machine, the pulp passes along a web, firstly
through a wet section, then a press section and finally through a drying
section. The paper is finally rolled up on reels, and then cut to the sizes
ordered by the customer. During this process, more than 90% of the wood
fibres in trees are converted to paper products.
Production process
Roundwood
Saw mill
chips
RAW MATERIALS
PRODUCTS
Recovered
paper
Old
corrugated
containers
RAW MATERIALS
PAPER MILL
PAPER MACHINE
HEAT
Chemicals
Water
Paper
Biogas
Bio product
Energy
thermal
electricity
Electricity
PULP
Norske Skog Saugbrugs
Photo: Stein Johnsen
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E5 - 4 Resource Inflows
Unit
2023
2024
2025
% change
2024-25
Total
bdt
*
1 245 131
1 447 799
1 515 914
5%
Roundwood
bdt
*
422 877
471 496
459 004
-3%
Wood chips
bdt *
108 320
146 232
158 586
8%
Pulp
bdt *
16 823
22 850
23 745
4%
Waste paper
bdt *
596 171
688 086
752 829
9%
Fillers / coating and Old Corrugated Cardboard (OCC)
bdt *
100 940
119 135
121 751
2%
Certified wood fibre, FSC/ PEFC**
%
99%
98%
99%
1%
Discontinued operations - Total***
bdt *
259 367
256 151
64 038
*
Bone dried tonnes (bdt)
**
Roundwood, chips, pulp
*** Discontinued operations: estimated data for Q1 2025 based on 25% of 2024
E5 - 5 Resource outflows. Products put on market
2023
2024
2025
Recovered paper in containerboard production
Norske Skog Bruck, Austria
100%
100%
100%
Norske Skog Golbey, France
-
-
100%
Total Norske Skog group
100%
100%
100%
Recovered paper in newsprint production
2023
2024
2025
Norske Skog Golbey, France
100%
100%
100%
Norske Skog Skogn, Norway
12%
6%
0%
Total
Norske Skog group
39%
34%
40%
Recovered paper in magazine production
2023
2024
2025
Norske Skog Bruck, Austria
23%
20%
10%
Norske Skog Saugbrugs, Norway
0%
0%
0%
Total
Norske Skog group
7%
7%
5%
E5 - 5 Resource Outflows - Waste
Application
Unit
2023
2024
2025
Waste generated
Non-hazardous waste diverted from disposal
tonnes
97 973
106 092
113 630
Recycling
Agriculture
tonnes
3 060
2 754
3 779
Recycling
Cement /road construction
tonnes
12 260
13 823
22 000
Recycling
Bed ash and other waste categories to recycling
tonnes
82 653
89 514
87 851
Non-hazardous waste directed to disposal
tonnes
222 646
216 476
222 434
Incineration
On-site energy recovery
tonnes
181 585
178 615
194 057
Landfilling
Ash, plastic
tonnes
41 061
37 861
28 377
Hazardous waste directed to disposal
tonnes
484
396
57
Landfilling
Asbestos to safe handling in municipal landfil
tonnes
-
54
0
Other disposal operations
Waste oil, electronics, paint etc. delivered collectors
tonnes
484
342
57
Hazardous waste directed from disposal
tonnes
-
-
370
Other disposal operations
Waste oil, electronics, paint etc. delivered collectors
tonnes
-
-
370
Non-recycled waste*
tonnes
223 130
216 872
222 491
Percentage of non-recycled waste*
%
69%
67%
66%
Total amount non-hazardous waste
tonnes
320 619
322 568
336 064
Total amount hazardous waste
tonnes
484
396
427
Total amount of waste
tonnes
321 103
322 964
336 491
Discontinued operations
Total amount of waste***
tonnes
61 227
59 112
14 778
*
Energy recovery is not included in definition of recycling in ESRS
*** Discontinued operations: estimated data for Q1 2025 based on 25% of 2024
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Norske Skog Golbey
Photo: Carsten Dybevig
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Own workforce
(ESRS S1)
1. Strategy
Impacts, Risks and Opportunities (IRO)
Type
Working conditions
Industrial accidents
Negative impact
x
x
Norske Skog has a negative impact on the health and safety of own workforce related to relevant risks within
our industry and type of operations. Employees working in operations (process operators) are exposed
to heavy machinery, hot media, harmful chemicals and risk of fires 24/7 due to shift work and continuous
operations. This can lead to work related accidents and loss of life. Process operators are exposed to highest
risk and other employee categories at mill sites are exposed to moderate risk. The negative impact is systemic
for our industry.
Advocate for improved working conditions through freedom of association*
Negative impact
x
x
Freedom of association, collective bargaining and work councils has a strong position our industry, especially
in France, Norway and Austria where the majority of Norske Skog employees are located. The existence of
work councils and collective bargaining has a positive impact on worker's ability to advocate for improved
working conditions such as working time and wages.
Equal treatment and opportunities for all
Attract and keep top talent though training and skills development
Risk
x
x
Norske Skog is dependent on expertise and knowledge of its employees for value creation. By investing in
apprentice programmes, cooperate with educational institutions and offer technical and soft skills training
throughout the career Norske Skog has identified an opportunity to attract and keep top talent (opportunity
evolving from a risk). Low female representation at Norske Skog poses a systemic risk, affecting reputation,
recruitment, and stakeholder relationships, making diversity crucial for sustainable growth.
* The following sub-sub-topics have been combined into one sub-sub-topic, “Freedom of association and collective bargaining” as they overlap and often addressed as one topic:
1) Freedom of association, the existence of works councils and the information, consultation and participation rights of workers
2) Collective bargaining, including rate of workers covered by collective agreements
3) Social dialogue
4) Poor gender diversity
Upstream
Location in
value chain
Time horizon
Own operations
Downstream
Short term
Medium term
Long term
The Norske Skog group aims to build a strong, secure and safe organisation
founded on our core values, and our work to ensure their safety, fair treatment,
and rights is central to this. The double materiality assessment identified
material impacts, risks and opportunities in relation to the following topics.
HEALTH AND SAFETY
Health and safety have the highest priority for Norske Skog, twenty-four hours
a day, seven days a week. The process industry and production of pulp, paper
and containerboard is exposed to inherent health and safety risks due to use of
heavy machinery, hot media, chemicals and risk of fires. More than 95% of our
workforce work in our production plants and the majority of these carry out key
functions related to production processes. Norske Skog is committed to provide
a safe working environment for our employees, contractors, and visitors.
WORKING CONDITIONS
Ensuring our employees’ rights to a safe workplace, decent working conditions
including working hours, conditions of employment and wages is key to
employee wellbeing and a thriving business. Norske Skog is committed to
practice openness, honesty and cooperation in dialogue with employees and
has a long history of formal agreements with elected employee representatives
all levels in the organisation, on the exchange of information and consultation.
The group has developed a policy on cooperation with elected employee
representatives.
EQUAL TREATMENT AND OPPORTUNITIES FOR ALL
Having a workplace where all employees feel included and motivated is
important for employee welfare. Norske Skog’s goal is to maintain a business-
oriented, international organisation that attracts and retains highly competent
and motivated employees on all levels. We strive to give people the opportunity
to grow personally and professionally in a stimulating working environment.
The below disclosures set out our policies, actions, metrics and targets to
address these topics. All materially affected members of our workforce are
included in the scope of this disclosure.
We have identified the following material impacts affecting our workforce
through our double materiality assessment:
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INDUSTRIAL ACCIDENTS (HEALTH & SAFETY)
Most of our workforce work in our plants where they face dangers such as
exposure to heavy machinery, potential exposure to harmful chemicals, and
hazardous equipment 24/7 due to shift work and continuous operations. This
can lead to accidents causing injury or loss of life. This negative impact affects
workers in all of Norske Skog mills and is considered systemic. Process
operators, employees working in servicing and maintenance, on-site logistics
and construction workers (contractors) are exposed to health and safety
hazards. This actual, negative impact occurs over the short, medium and long-
term.
A strong health and safety culture is directly connected to our business model
and strategy and a key contribution from Norske Skog to Sustainable
Development Goal 3 on “Good health and wellbeing”. Norske Skog is committed
to provide a safe working environment and has a long-standing history of
continuous learning through the health and safety programme at the mills
called “Take care 24/7”. The programme receives high continued support
across all operations and is supported by policies, procedures, training, risk
analysis root cause analysis and best practice sharing between mills and in the
industry.
WORKING CONDITIONS
Freedom of association, collective bargaining and work councils has a strong
position our industry, especially in France, Norway and Austria where most
Norske Skog employees are located. Globally, more than 90% of Norske Skog’s
workforce are covered by collective bargaining agreements. The existence of
work councils, collective bargaining has a positive impact on worker’s ability
to advocate for improved working conditions such as working time and wages.
The impact reflects Norske Skog’s values of openness, cooperation and
honesty and is part of Norske Skog’s approach to an inclusive and attractive
workplace. The actual, positive impact is in own operations and occurs over
the short, medium and long-term.
TRAINING AND SKILLS DEVELOPMENT
Norske Skog is dependent on expertise and knowledge of its employees for
value creation. By investing in apprentice programmes, cooperate with
educational institutions and offer technical and soft skills training throughout
the career, Norske Skog has identified an opportunity to attract and keep top
talent (opportunity evolving from risk).
This opportunity evolves from a risk related to recruitment of new employees.
Investment in training and skills development increases employee job
satisfaction, reduces voluntary turnover rate and reduces recruitment costs.
The opportunity is related to own operations and occurs over the short,
medium and long-term.
GENDER EQUALITY – POOR GENDER DIVERSITY
The rate of female workers in the process industry and in Norske Skog is low
compared to other sectors. Shift work and unfavourable working hours have
been explanations for the low female share. In 2025, the female share of the
total workforce was 14% in 2025, an increase from 13% in 2024. Poor gender
diversity can lead to reputational risk and negatively impact recruitment.
Norske Skog is committed to search for female talents for a wider range of
roles in our company. Norske Skog recognises that further improvement is
needed, and we believe that our new strategic growth Initiatives will be
instrumental in terms of diversity.
The risk is considered systemic in our industry, is related to own operations
and occurs over the short-, medium- and long-term.
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2
POLICIES
Norske Skog’s core values of openness, honesty and cooperation as well as
our policies and guidelines build on the UN Universal Declaration of Human
Rights and the 10 principles of UN Global Compact.
Steering Guidelines
The Norske Skog Steering Guidelines is the overarching administrative
document for the Norske Skog group and provides the fundament for our
ethical, legal and sustainable conduct. It defines expectations of own
employees and applies to all employees, including temporary personnel, who
perform work for a company in the Norske Skog group. Norske Skog expect
similar conduct and ethical standards from our customers and suppliers, as
well as in partnerships, joint ventures and partially owned companies.
The Steering Guidelines addresses Norske Skog’s commitment to a safe
workplace, respect for labour rights and freedom of association, fair working
conditions, personal and professional development and equal treatment and
opportunities for all. As such the Steering Guidelines govern Norske Skog’s
approach to material impacts, risks and opportunities defined under S1.
In addition, the Steering Guidelines addresses the committed to respecting
fundamental labour rights and constructive employee relations through strict
adherence to international frameworks and conventions including the UN
Guiding Principles for Business and Human Rights, the OECD Guidelines for
Multinational Enterprises and the ILO Declaration on Fundamental Principles
and Rights at Work and to local legislation where we have operations. This
includes the commitment to non-harassment and discrimination based on
gender, religion, race, national or ethnic origin, cultural background, social
group, disability, sexual orientation, marital status, age or political opinion. It
also includes support for human rights and care for vulnerable groups and
commitment to promote equal opportunities, diversity and inclusion by
providing equal employment opportunities and treat all employees fairly and
with respect.
Norske Skog’s business units have a high degree of independence and
accountability. Local managers are responsible and accountable for decisions
and results within their units. However, Norske Skog apply a uniform basis for
our operations across countries and cultures with respect to HESQ (health,
environment, safety and quality), people development, financial reporting and
legal compliance. In these areas, our conduct shall be based on the same
principles to promote a unified Norske Skog group.
The Steering Guidelines is available on Norske Skog’s webpage and its
complementary documents, such as corporate standards and procedures,
are available on the intranet. Steering Guidelines | Norske Skog
https://www.norskeskog.com/sustainability/governance/steering-guidelines
The Steering Guidelines have been approved by the board of directors of
Norske Skog AS and the guidelines and its supporting documents are subject
to regular review and robust policy governance.
Health & Safety
The Steering Guidelines are complemented by the following HSE documents,
which are available on our intranet:
Health, safety and security:
•
Norske Skog Health & Safety Standards
•
Norske Skog Health & Safety Procedures
Norske Skog Health and safety standard covers all operations, throughout
Norske Skog, which have the potential to adversely affect the health and
safety of people, including employees, contractors, visitors and the public.
This objective of this standard is to:
• Define the minimum requirements for Health and Safety Systems at all
operational levels.
•
Provide a framework for measuring Health and Safety Systems.
•
Promote a consistent approach to Health and Safety management.
•
Support the identification and sharing of best practices across the mills.
• Enable mills to assess themselves against the Standards and continually
improve their systems.
• Facilitate inter-mill reviews that offer external perspectives and
recommendations for improvement.
This standard and related Norske Skog Health & Safety Procedures mandates
reporting of all personal injuries with absence (H1 and H2 cases), insurance
cases (damage), security breach, critical unwanted incidents including fires
and near misses shall be reported within 24 hours to local and corporate
management.
Root cause analysis of such incidents to continuously improve our health and
safety performance is mandatory. Reporting shall always be followed by a
report in Synergi Life, an operational risk management tool from DNV GL
which Norske Skog has used for years. Synergi, is also a source for the transfer
of experience and sharing of best practices and form the basis for our internal
HSE audits.
Norske Skog has monthly Management Focus Report (MFR), which is
distributed to all business units for internal distribution and includes type of
injury and rates of injury, occupational disease rate, lost working days due to
accidents, absenteeism, total number of work-related personal injuries and
fatalities, by region and business unit.
Norske Skog Supplier Code of Conduct also requires our suppliers ensure
worker safety in line with applicable International Labour Standards.
The CEO is accountable for implementation of the policy, which is subject to
periodic internal audit review to ensure it remains effective. All incidents are
escalated to group management level for information and guidance purposes.
All our business units also have local health, safety and environmental (HSE)
forums where the company and trade unions have regular meetings to address
local HSE issues. At these meetings, there should be an equal number of
representatives from the company and the employees, with as many different
groups as possible from within the organisation represented. If the organisation
has Occupational Health Services, it should also be represented on the
committee. Occupational Health Services should be an advisory and independent
body and represent the interests of both the employer and the employees.
2. Impact, risk and opportunity management
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Norske Skog believe that issues relating to health, safety and the environment
must be fully integrated into all our activities at every level and not managed
as a separate and distinct function. That is why everyone working in Norske
Skog – whether an employee or contractor – is accountable for the health,
environmental and safety performance.
Freedom of association/cooperation with employee representatives
The Steering Guidelines are complemented by the following people and
organisational documents, which are available on Norske Skog’s intranet:
• Agreement IndustriALL Global Union
•
The Norwegian National Collective Agreement between The Confederation
of Norwegian Enterprise and the Norwegian Labour Union
Norske Skog has signed and is committed to adhering to the Agreement
IndustriALL Global Union, fully supporting the individual employee’s right to join
a trade union and acknowledging the unions’ rights according to international
conventions and national regulations. Our commitment to respecting the
freedom of association is embodied in the Global Framework Agreement on the
Development of Good Working Relations, concluded by Norske Skog and the
IndustriALL Global Union. Additionally, Norske Skog respects and supports the
human rights of all individuals potentially affected by our operations and
subscribes to the United Nations Global Compact principles.
Our Norwegian business units operate under the Norwegian National
Collective Agreement between The Confederation of Norwegian Enterprise
and the Norwegian Labour Union. This agreement ensures fair and equitable
working conditions, upholding workers’ rights in alignment with national
labour laws and international labour standards.
Furthermore, Norske Skog’s Norwegian business units have signed the IA
Agreement, which is designed to promote a more inclusive workplace by
reducing sickness absence rates and increasing job attendance for all
employees. The IA Agreement is a collaborative effort based on tripartite
cooperation between the Norwegian government, The Confederation of
Norwegian Enterprise, and the Norwegian Labour Union. Although the IA
Agreement is a distinctly Norwegian framework, our non-Norwegian business
units operate under similar conditions, aiming for an inclusive and supportive
work environment.
The IA Agreement and Norske Skog’s operational objectives include
developing measurable targets to prevent sickness and absence, as well as
establishing verifiable activity benchmarks to ensure a proactive and
professional approach to both preventive and reactive healthcare within the
company. The agreement outlines implementation measures and conflict
resolution mechanisms to maintain a stable and healthy working environment.
To supplement our policy framework, Norske Skog has established formal
agreements with elected employee representatives to facilitate information
exchange and consultation at all levels of our organisation. These
representatives play a critical role in advocating for the collective interests of
our workforce, identify improvements, discuss and define targets while also
supporting individual employees in safeguarding their rights.
However, the most valuable collaboration remains direct, face-to-face
communication and employee involvement in daily operations. This fosters
openness, visible leadership, and a corporate identity built on respect for each
employee as an individual.
To ensure efficiency and evaluate the effectiveness of these policies, each
Norske Skog mill has a structured and transparent process for cooperation,
information sharing, and consultation, based on local legislation and
agreements. A formal agreement is in place with all local unions in Norway to
define the structure and process for handling information and consultation on
common issues related to our business and operations.
The CEO is accountable for implementing the Agreement IndustriALL Global
Union policy and ensuring compliance with the Norwegian National Collective
Agreement and IA Agreement. These commitments are subject to periodic
internal audit reviews to maintain their effectiveness and alignment with
Norske Skog’s broader corporate responsibilities.
All employees are covered by social protection, through public programmes or
through benefits offered by Norske Skog, against loss of income due to any of
the following major life events: sickness, unemployment, employment injury
and acquired disability, parental leave, retirement,
Training and development
Norske Skog believes in developing people through their entire employment
period in Norske Skog by providing training, job enrichment and career
opportunities. This commitment is addressed in the Norske Skog Steering
Guidelines.
Training and development at Norske Skog are focused on structured on the
job training which provide rewarding achievements, excellent career
development opportunities and good results for the group. A central element
in our approach to training, development and recruitment is the advanced
programmes for apprentices run by all mills. These programmes are the
preferred source when recruiting to our business and a key contribution from
Norske Skog to Sustainable Development Goal 4 on “Quality Education”.
Mechanisms to monitor and report the effectiveness of this commitment
include reporting on targets related to apprentice programmes and recruitment
of new ordinary employees recruited from apprentice programmes. To support
the policy commitment on training and development for all employees, Norske
Skog has implemented processes and routines for assessing people
performance and creating professional development plan for employees.
Gender diversity
The Steering Guidelines cover our commitment to equal treatment and
opportunities for all including the commitment to promote gender diversity.
Mechanisms for managing, monitoring and reporting the effectiveness of this
include reporting of female representation in general workforce and leadership
positions.
Engaging with our workforce
As described in the section about policies, dialogue and feedback mechanisms
with our employees is crucial to ensure a workplace that meets the needs and
demands of our workforce and creates an environment where people thrive
every day. It is also vital to ensure our employee’s perspectives are considered
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when making decisions and developing policies, actions, metrics and targets,
and therefore is undertaken both in reflection of and sometimes in advance of
the development and implementation of employee-related policies.
Mills monitor the progress and the wellbeing of our employees through regular
employee engagement survey. This is available to all employees. Results from
the surveys are shared with local mill management and with teams for follow
up. The local head of human resources is responsible for all overseeing
workforce engagement – this includes monitoring the actions implemented in
response to the survey and undertaking periodic evaluations to evaluate their
effectiveness.
PROCESSES TO REMEDIATE NEGATIVE IMPACTS AND
CHANNELS FOR OWN WORKFORCE TO RAISE CONCERNS
Norske Skog has a reporting channel in place for all employees and non-
employees to report concerns and complaints. This is aligned to the UN
Guiding Principles on Business and Human Rights effectiveness criteria.
Reports can be submitted by email to [email protected].
It is an important principle under the Steering Guidelines that the reporting in
good faith by employees of actual or suspected breaches or other concerns
within Norske Skog shall not have adverse consequences for the relevant
employee’s employment relationship with Norske Skog. It is equally important
to avoid misuse of the reporting mechanisms, which leads to unfounded or
unfair treatment or negative consequences for employees.
The Steering Guidelines are complemented by the following documents,
which are available on our intranet:
• Norske Skog reporting routine
•
Form for receiving a report on non-compliant circumstances
We ensure employees are aware of this channel by incorporating them into
management touchpoints and throughout the onboarding process. For
matters of legal or financial impropriety we also have in place whistleblowing
policies and procedures.
We take all concerns raised very seriously, and every report is handled with the
utmost sensitivity. Confidentiality is protected to the greatest extent possible.
Upon receiving a grievance, we carry out a thorough due-diligence process to
establish the facts of the case. Once the information is verified, we work to
address and remedy any adverse impacts. The type and scope of remedial
action will depend on the nature of the impact.
The SVP General Counsel informs the corporate management and bord of
directors about grievances raised on an annual basis to understand any trends
over time and monitor the effectiveness of the system. We track trust in these
mechanisms via dialogue with the local human rights and compliance officers
in the mills and regional sales offices.
ACTIONS
Health & safety
To meet the commitment to a safe and healthy workplace Norske Skog actions
focus on building a strong health and safety culture. Safety culture is built over
time and require continuous focus, maintenance and development to remain
effective.
To supplement our policy framework, Norske Skog has a health and safety
programme at the business units, called “Take Care 24 hours”. The programme
is adapted to different cultures and local requirements where we operate and
shall always meet the requirements of our health and safety standards for
international activities. Two mills, Norske Skog Saugbrugs and Norske Skog
Bruck, hold management system certificates for health and Safety (ISO
45001).
There are many elements that make up good health & safety management
systems, and all mills have regular reviews of plant & equipment integrity, legal
compliance and safe working procedures. Equal important is to measure the
more intangible elements like leadership commitment, communication or
employee participation and safe working behaviour. Widespread awareness is
integral to the management and prevention of safety hazards. Actions related
all elements are in place in all mills and serve to reduce safety hazards.
Additionally, the health & safety policy and management system is available to
all staff via the intranet.
Norske Skog continue to evolve and improve its health and safety programme.
Below is a list of actions that was carried out in the reporting year
related to health and safety targets (S 1-5);
Zero injuries:
•
Maintenance and repair: Improved routines for maintenance- and cleaning
stops due to identified high risk procedures at identified mills.
•
New procedures: Draft and implement new procedures and staff training for
new facilities and operations at Bruck and Golbey mill.
•
Visible leadership: Increased focus on safety walks centred around process
observation and behaviour, documentation and standards for H&S leadership.
• Awareness-raising campaigns: Several mills have rolled out awareness-
raising campaigns related to Norske Skog health and safety programme
“take care 24/7” or other similar activities.
Reduce sick leave:
•
Medical centres: Continued operations of BU medical centres
•
Well-being: initiatives initiated at mills offering local fitness services, social
events
Knowledge sharing:
• Internal knowledge network: regular meetings with health and safety
managers from European mills focused on review of risk and sharing of
best- practices.
•
Training: Evaluation of mill health and safety training with increased focus
on new production processes and facilities at Bruck and Golbey.
These, and other local actions rolled out by the mills, help us to improve how
we address health & safety impacts, risks and opportunities. Norske Skog
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continues to monitor the effectiveness of management systems and evaluate
necessary actions to keep all employees safe.
Freedom of association/cooperation with employee representatives
Throughout the year, business units have remained focused on measures that
can support improved working conditions. Actions include:
• Adjustment of wages based on job description and responsibilities in
cooperation with labour unions.
• Employee surveys mapping working environment, mental and physical
stress and employee well-being.
•
Dialogue with employee representatives and unions related to organisational
changes, reduction in workforce and temporary employment.
In addition to attractive working conditions, several of Norske Skog mills offer
employees’ pension- and insurance plans, subsidised lunch and gym access.
To support Norske Skog’s policy commitment and target to invest in our
employees, business units have implemented planned actions in the following
areas in 2025:
INVEST IN OUR PEOPLE THROUGH TRAINING AND DEVELOPMENT
Employee training and development plans varies depending on job profiles,
type of machinery and individual needs. Education and training are part of the
annual cycle at all mills. Local human resource management and respective
divisions keep track of all planned training and update schedules according to
needs. New employees are assigned to training programmes according to
their job profile.
Over the last two years Norske Skog has been setting up a containerboard
knowledge network group to prepare the workforce for entering the packaging
paper market. Actions in this area has been maintained during 2025 and is
related to the business model and strategy of the group to diversify its
operations in new growth markets.
ATTRACT AND KEEP TOP TALENT
All business units cooperate with selected schools, colleges, and universities
in their region. The engagement embraces annual activities such as mill visits,
project work, diploma theses, trainee, and apprentices’ programmes. Norske
Skog takes pride in delivering advanced programmes for apprentices. These
programmes are the preferred source when recruiting to our business.
All mills are increasing their efforts related to talent acquisition and
development. Key actions in the reporting year include dialogue and awareness
raising with managers. This includes approaches to stimulate mid-level
managers to improve the completion rate for annual performance reviews and
development plans. The mills are working to identify challenges and solutions
to further improve the execution of annual performance reviews development
plans in 2026.
Gender diversity
Norske Skog mills are responsible for implementing local measures related to
inclusion and diversity, including gender diversity to support Norske Skog’s
policy commitment. All mills work systematically with locally defined annual
action plans and roll out appropriate measures.
The two Norwegian mills have established Inclusion and Diversity Committees
that hold the main responsibility for this work. At Norske Skog Golbey, the
Social and Economic Committee (Labour Committee) serves similar functions
but not pure Inclusion and Diversity. However, these committees typically
consist of the chief union representative, the chief safety delegate,
representatives from management, and HR (i.e., a joint committee). The
committee has regular meetings and works to investigate and evaluate risks
of discrimination, plan and implement measures. The committees are
responsible for rolling out annual initiatives aimed at strengthening diversity,
preventing discrimination, and creating an inclusive culture in the workplace.
An important part of the work to ensure equality and improve gender diversity
in the workplace takes place during recruitment processes (internal and
external).
In 2025, actions implemented in the mills have been focused on:
• Actively collaborating with educational institutions so that we become
visible to students early in their education. Especially the opportunities
available in vocational education, with a particular focus on recruiting
female employees.
• Motivating female employees to take on leadership positions, especially
process operators
• Ensuring that unconscious bias regarding gender, ethnicity, orientation,
age, and disability do not appear in the recruitment process.
•
Objective tests and selection criteria are applied used in the recruitment to
ensure that all candidates are evaluated on equal measures.
Norske Skog mills are actively working to increase the proportion of female
employees, and some mills have defined targets to increase the proportion of
women in their workforce and leadership positions.
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TARGETS
Norske Skog currently have no targets in line with the ESRS. However, until
such targets have been developed, we work in accordance with the following
ambitions and milestones.
Health & safety targets
Norske Skog has set the following targets to meet the commitment to a safe
and healthy workplace and to support Sustainable Development Goal 3
related to “Good health and wellbeing”. The targets were set in 2020, and the
scope include all employees and contractors.
Working conditions targets - Freedom of association/cooperation with
employee representatives
Norske Skog’s target related to working conditions are covered by our targets
related to health and safety and training and development.
Training & development targets
The Norske Skog group aims to be an attractive employer in our communities
where we operate. In 2020 we defined the following targets to support our
ambitions to attract and keep top talent.
Gender diversity
Norske Skog operates in a male-dominated industry. Improving the share of
female employees is a focus area in recruitment of new employees. The Norske
Skog group has not set formal targets at group level in this area.
3. Performance, metrics and targets
Focus area
Ambition/area
Target
Planned actions
Health & safety
Increase job attendance for all
employees
Reduce absenteeism
•
Provide medical assistance for injuries
•
Provide health and wellbeing programmes for employees
Health & safety
Reach zero personal
injuries (H1 and H2)
•
Develop leadership training programme
•
Perform regular self–assessments to identify areas of improvement
Inspire others to learn from our
occupational health and safety
standards
Share knowledge
through relevant
professional forums
and industry
organisations
•
Participate in and share knowledge with membership association like
Federation of Norwegian Industries and CEPI (Confederation of European
Paper Industry)
•
Review and develop internal e-Learning HESQ-material for local training
•
Focus on Contractor Management contracts
Focus area
Ambition/area
Target
Planned actions
Learning and
development
Attract and keep top talent
Achieve at least 75% of new hired
skilled workers to be recruited from
apprentices programmes by 2025
Implement advanced apprentice programmes and extended training
programmes at all mills.
Offer ten trainee positions or
internships for master degree
students annually
Cooperate with local schools and selected universities about relevant
programmes
Invest in our people through
training and development
Provide training modules for
technical core skills, soft skills and
compliance skills
Offer training and supplementary education for all through their entire
job career
Achieve a 100% completion rate for
annual performance reviews and
development plans.
Stimulate mid-level managers to carry out performance reviews and
annual plans for training and development
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ACCOUNTING POLICIES
Characteristics of own employees
Annual metrics reported in this chapter represent status per end of December
for each year. Employee data on headcount is reported monthly in Adaptive,
Norske Skog’s finance reporting tool. Reporting on own workforce include full-
time employees, temporary employees, non-guaranteed hours employees,
apprentices and internal resources.
External contractors are considered non-employees in Norske Skog’s workforce
and include people not on Norske Skog payroll running their own business or
being employed by a contractor, agency or supplier company working on a
regular basis within the unit. Full-time employees mean employees on ordinary/
permanent employment contract with Norske Skog. This includes employees on
leave, holiday, and sick absence but still on payroll. Employees on non-paid leave
are included if they have a formal employment with Norske Skog.
Temporary employees are employees on a temporary contract with Norske Skog
covering vacancies, holidays, projects, temporary workloads or other special
reasons. Temporary employees include apprentices.
Apprentices are normally younger people who are recruited on a temporary
employment contract with the main objective to develop their professional
skills and competence. Normal working tasks and responsibilities, “on the job
training”, might be a part of their development activities. This includes trainees,
apprentices or graduates on special graduate programmes. Apprentices can be
fully or partly financed by external or public sources.
Top management is defined as employees in the following levels of the
organisation; corporate management team, mill management team and Hub MD
and inside sales managers. Other management is defined as management level
below top management that include personnel responsibility.
Breakdown of employee data by gender and employment type is reported by
headcount for 2024 and 2025.. Data for 2023 is reported by FTE. Employment
type by gender and age group for 2023 has been estimated based overall
gender split. The calculation of FTE is an employee’s scheduled hours divided by
Norske Skog’s hours for a full-time workweek.
Health and safety
Reporting of incidents, root cause analysis and related data is reported in
Synergi Life, an operational risk management tool from DNV GL.
Rate of recordable work-related accidents (TRI): This includes total number of
fatalities, lost time injuries, substitute work, and other injuries requiring
treatment by a medical professional per million hours worked (H1 in Norway).
Lost days due to work-related injuries, ill-heath, accidents and fatalities (LTI):
This includes lost time injuries per million working hours (H2 in Norway).
Social dialogue and collective bargaining
Data is reported to corporate head quarter as part of the ESRS reporting on an
annual basis in Adaptive, Norske Skog’s finance reporting tool. Data reporting
started in Adaptive for 2024. Data for 2023 was collected from entities in excel
based reporting tools.
Employees covered by collective bargaining agreements are those individuals to
whom Norske Skog is obliged to apply the agreement. Data for 2024 and 2025
have been reported by headcount in adaptive, data for 2023 is covering
permanent employees only.
Workers’ representatives mean trade union representatives, namely repre-
sentatives designated or elected by trade unions or by members of such
unions. Data has been reported in adaptive for 2024 and 2025 and estimated
for 2023.
Training and development
Data is reported to corporate head quarter as part of the ESRS reporting on an
annual basis in Adaptive, Norske Skog’s finance reporting tool. Data reporting
started in Adaptive for 2024. Data for 2023 estimated based on 2024.
Training hours have been estimated on hours allocated to annual training
programmes and performance reviews. There is no consolidated summary tool
for counting the group’s actual hours.
Training hours include initiatives put in place by Norske Skog aimed at the
maintenance and/or improvement of skills and knowledge of own employees. It
can include different methodologies, such as on-site and on-the-job training,
and online training. Training can be conducted by internal or external staff.
Apprentice training (external and on the job) is not included. shall not be counted
in this category.
Discontinued operations
Boyer is included in all metrics and data for historical data including 2024. For
2025 Boyer has been excluded from all data and metrics.
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APPRENTICES
Headcount
0
20
40
60
80
100
120
140
160
2025
2024
2023
0
5
10
15
20
25
2025
2024
2023
% Female
% female in top management
positions
Percent
S1-6 Turnover rate
Unit
2023
2024
2025
Employee turnover rate
%
11
11
9
Number of employees who left
Number
223
224
151
S1-6 Number of employees
- by gender and employment type* **
2023
2024
2025
Unit
FEMALE
MALE
TOTAL
FEMALE
MALE
TOTAL
FEMALE
MALE
TOTAL
Number of employees
Number
283
1 878
2 161
275
1 827
2 101
241
1 434
1 674
Number of permanent employees
Number
255
1 691
1 946
247
1 653
1 900
218
1 315
1 533
Number of temporary employees***
Number
26
177
203
25
160
185
20
103
123
Number of non-guaranteed hours employees
Number
2
10
12
3
14
17
3
15
18
*
Data for 2024 and 2025 reported by headcount, data for 2023 reported by FTE.
**
Employment type by gender 2023 estimated based overall gender split.
***
Apprentices are included in number of temporary employees.
S1-6 Number of employees - by country*
Number of employees (headcount)
Unit
2023
2024
2025
Norway
Number
893
839
789
France
Number
426
415
400
Austria
Number
510
513
462
Australia
Number
307
312
0
Germany
Number
15
12
13
UK
Number
10
10
10
Total
2 161
2 101
1 674
* Data for 2024 and 2025 reported by headcount, 2023 by FTE
S1-8 Collective bargaining and social dialogue
Unit
2023
2024
2025
Employees covered by collective bargaining agreements*
%
90
86
95
Employees covered by workers representatives**
%
81
81
95
*
Data for 2024 and 2025 reported by headcount, 2023 by FTE
** Data estimated for 2023
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S1-8 Collective bargaining and social dialogue
Collective bargaining coverage
Social dialogue
Coverage rate
Employees – EEA
Employees – Non-EEA
Workplace representation
80-100%
Norway
France
Austria
Norway
France
Austria
S1-9 Diversity
Unit
2023
2024
2025
Gender diversity
Women in top management
FTE
10
11
10
Women in top management
%
19
21
24
Women in other management positions
%
14
17
17
Distribution of employees by age group*
Under 30 years old
%
15%
15%
18%
Between 30-50 years old
%
37%
37%
39%
Over 50 years old
%
48%
48%
44%
* Distribution of employees by age group estimated for 2023
S1-13 Training and skills development
2023
2024
2025
% Participation in performance reviews
40%
56%
67%
Of which% were men
*
69%
69%
83%
Of which% were women*
31%
31%
17%
Total performance reviews
862
1 181
1 116
Performance reviews per employee
1
1
1
Total number of training hours*
47 868
46 540
30 008
Men
43 339
42 143
25 763
Women
4 529
4 397
4 245
Average number of training hours*
20
20
18
Men
23
23
18
Women
16
16
18
* Data for 2023 estimated based on 2024
S1-14 Health and Safety metrics
2023
2024
2025
% workforce covered by H&S management system (based on headcount)
100%
100%
100%
Number of fatalities
0
0
0
Employees
0
0
0
Value chain workers working on own sites
0
0
0
Number of recordable work-related accidents
23
36
36
Rate of recordable work-related accidents (H1+H2)**
5.7
9.9
12.3
*
Total number of fatalities, lost time injuries, substitute work, and other injuries requiring treatment by a medical professional per million hours worked.
**
No serious accidents or fatalities at Boyer mill in Q1 2025.
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Norske Skog Saugbrugs
Photo: Stein Johnsen
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GOVERNANCE
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1. Material impacts, risks and opportunities
Impacts, Risks and Opportunities (IRO)
Type
Corporate culture
Unethical business practice
Risk
x
x
Norske Skog is a global company, and engaging with international business partners inherently carries the risk
of unethical practices. Within our own operations, the sales and procurement organisations face an elevated
risk when securing contracts, which could result in fines and reputational damage, potentially undermining
trust and relationships with customers, suppliers, and employees. Similarly, failure to protect whistleblowers
or their anonymity can harm reputation, erode trust, and affect employee wellbeing, underscoring the need for
strong ethical and compliance practices.
Upstream
Location in
value chain
Time horizon
Own operations
Downstream
Short term
Medium term
Long term
ESRS G1 Business conduct
Material Impacts risks and opportunities
The materiality assessment identified the following impacts relating to
business conduct to be material to Norske Skog:
BUSINESS CONDUCT
We are committed to conducting our business with integrity and ensuring
compliance with all applicable laws and regulations. We seek to embed a
strong compliance culture through regular training and awareness raising.
At Norske Skog, our material risks related to business conduct reveal both
negative and positive dimensions, tied to our business model, operations, and
value chain. Risk like unethical business practices, are concentrated within our
own operations particularly in sales and procurement where securing
contracts globally heightens exposure to risks like anti-competitive behaviour,
especially in regions with weaker regulatory frameworks. Upstream, our supply
chain faces risks from supplier non-compliance with ethical standards, while
downstream, customer trust could erode if our publication paper operations
are linked to unethical conduct.
Measures to mitigate the risks are handled in our robust Steering Guidelines,
fostering a culture of openness, honesty, and cooperation across all business
units, enhancing our reputation as a “best in class” partner. These risks
influence our strategy by reinforcing zero-tolerance policies and due diligence
processes, with ongoing adjustments to training and auditing to mitigate risks.
Over the short term (1-3 years), reputational damage or fines could disrupt
operations, while long-term (5-10 years) resilience hinges on sustained ethical
performance. Our involvement arises directly from our global activities and
business relationships, necessitating vigilant oversight of suppliers and joint
ventures. To assess resilience, we qualitatively evaluate compliance adherence
and quantitatively monitor incident reports, ensuring our strategy adapts to
emerging risks over these time horizons.
The effects of these risks are profound: unethical practices could harm
employee wellbeing, local communities, and environmental standards
particularly in resource-intensive regions while our ethical commitments uplift
stakeholder trust and support human rights, aligning with our business
model’s emphasis on sustainability and independence of local units. Material
risks may often originate from external pressures in high-risk markets. We
respond by embedding ethical principles into decision-making, with plans to
further integrate the Code of Conduct into supplier contracts. No significant
shifts in risks occurred compared to the last reporting period, reflecting stable
governance amid growing international exposure.
Material business-conduct risks at Norske Skog centre on unethical practices
and whistleblower protection failures, while risk mitigating measures lie in
leveraging our ethical framework to strengthen market position. Risks are
concentrated in our own operations sales and procurement teams navigating
international deals and upstream, where suppliers in diverse geographical
areas (e.g., Asia or emerging markets) may flout anti-competitive norms.
Downstream, risks emerge if distributors or customers perceive inconsistent
ethical standards. These risks currently strain financial performance via
potential fines (estimated at 1-5% of annual revenue in severe cases) and
reputational costs. We respond by enforcing the Steering Guidelines.
Resilience is qualitatively assessed via stakeholder feedback and quantitatively
via compliance incident trends, projecting stability over short-term (1-2
years), medium-term (3-5 years), and long-term (10+ years) horizons.
Compared to the prior period, risks remain steady, though opportunities may
grow with increased supplier engagement.
Financially, risks could reduce cash flows by 2-3% (estimated figure) annually
in the short term if severe incidents occur, with medium-term recovery
dependent on mitigation investments. Current financial effects are minimal,
with no significant adjustments to assets or liabilities anticipated within the
next year. Our strategy’s resilience withstands risks through geographically
diversified operations and robust reporting, with qualitative evaluation of legal
exposure and quantitative forecasts of penalty impacts ensuring preparedness.
Anticipated effects remain manageable, with no transformative divestments
or acquisitions planned.
Business conduct
(ESRS G1)
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PROMOTING A CULTURE OF INTEGRITY
Norske Skog’s policies addressing material business conduct impacts, risks,
and opportunities are rooted in our Steering Guidelines and Code of Conduct,
overarching frameworks approved by the board of directors. These guidelines
tackle unethical practices and whistleblower protection by mandating ethical,
legal, and sustainable conduct across all operations, with a zero-tolerance
stance on non-compliance. Key contents include anti-corruption measures,
compliance with laws, and robust reporting mechanisms, directly addressing
risks like reputational damage and fines from unethical behaviour in sales and
procurement, as well as trust erosion from whistleblower neglect.
The policy applies universally to all employees, temporary staff, and, where
feasible, partly owned companies, with no exclusions, covering the entire value
chain. Implementation is overseen by the CEO, cascading through line
management, and aligns with the UN Convention against Corruption through its
bribery prohibition. Stakeholders’ interests, particularly employees and business
partners, are considered to foster trust, and the guidelines are accessible via the
intranet, supported by training and auditing to monitor efficacy.
Our corporate culture of openness, honesty, and cooperation is established
and promoted through the Steering Guidelines, which every employee must
follow, reinforced by leadership’s commitment to model impeccable behaviour.
We develop this culture via a people-oriented strategy, encouraging
professional growth and inclusivity, and evaluate it through regular training,
audits, and compliance reporting, ensuring alignment with our “best in class”
goal. Concerns about unlawful or unethical conduct are identified and
reported via multiple channels superiors, HR, HSE reps, or a confidential
email ([email protected]) accessible to internal and external
stakeholders. Investigations are prompt, independent, and objective, extending
beyond whistleblower reports, with the corporate legal department ensuring
rigor. External investigators will be used when appropriate and especially in
situations where members of the board or corporate management are reported
to the whistleblower function. Typical external investigator could be a lawyer,
auditor or other expert independent of Norske Skog and the persons involved.
Sales and procurement functions are most at risk for anti-competitive
behaviour due to global contract dealings, targeted by mandatory training.
This training, offered annually to all employees, covers ethical conduct in
depth, with records tracking participation and effectiveness.
Whistleblower protection is embedded in the Steering Guidelines, offering
confidential reporting channels and explicit non-retaliation guarantees per
Directive (EU) 2019/1937. We provide training to workers on reporting
processes and to staff handling reports, ensuring awareness and competence.
The guidelines’ efficacy is monitored via the Continuous Compliance
Programme, with local management agendas and incident reports tracking
progress. In especially serious cases, the compliance officer will consult with
the board of directors to determine if any regulatory and/or authority will be
reported to. Empirical evidence proves that most of the whistleblower cases
being reported are human resource issues and handled accordingly. This
comprehensive approach, rooted in our core values, ensures accountability,
protects stakeholders, and upholds our ethical standards across all business
conduct matters.
Norske Skog Bruck
Photo: Thomas Moser
2. Metrics and targets
Norske Skog currently have no targets in line with the ESRS. However, until
such targets have been developed, we work in accordance with the following
ambitions and milestones.
No incidents related to fraud, corruption, bribery, breach of anti-trust,
competition laws and whistleblowing cases were reported in 2025 (2024: No
incidents)..
Norske Skog did not receive any convictions or fines for violations of anti-
corruption or anti-bribery law in the year, nor has it been subject to any legal
action relating to corruption and bribery.
All employees have undergone annual training sessions both for new
employees and repetitive training for existing employees.
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Norske Skog Saugbrugs
Photo: Stein Johnsen
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CONTENT INDEX OF ESRS DISCLOSURE REQUIREMENTS
List of material DRs
Reference
- section
in report
ESRS 2 - General disclosures
BP-1 General basis for preparation of the sustainability statement
General disclosures - Basis for preparation
BP-2 Disclosures in relation to specific circumstances
General disclosures - Basis for preparation
GOV-1 The role of the administrative, management and supervisory bodies
General disclosures - Governance
GOV-2 Information provided to and sustainability matters addressed by the undertaking’s administrative, management
and supervisory bodies
General disclosures - Governance
GOV-3 Integration of sustainability-related performance in incentive schemes
General disclosures - Governance
GOV-4 Statement on due diligence
General disclosures - Governance
GOV-5 Risk management and internal controls over sustainability reporting
General disclosures - Governance
SBM-1 Strategy, business model and value chain
General disclosures - Strategy, stakeholders, material impacts, risks and
opportunities
SBM-2 Interests and views of stakeholders
General disclosures - Strategy, stakeholders, material impacts, risks and
opportunities
SBM-3 Material impacts, risks and opportunities and their interaction with strategy and business model
General disclosures - Strategy, stakeholders, material impacts, risks and
opportunities
IRO-1 Description of the processes to identify and assess material impacts, risks and opportunities
General disclosures - Impacts, risks and opportunity management
IRO-2 Disclosure Requirements in ESRS covered by the undertaking’s sustainability statement
General disclosures - Impacts, risks and opportunity management
E1 - Climate change
ESRS 2 GOV-3-E1 Integration of sustainability-related performance in incentive schemes
General disclosures - Governance
E1-1 Transition plan for climate change mitigation
Climate change (ESRS E1) - Strategy
ESRS 2 SBM-3-E1 Material impacts, risks and opportunities and their interaction with strategy and business model
Climate change (ESRS E1) - Impacts, risks and opportunities
ESRS 2 IRO-1-E1 Description of the processes to identify and assess material climate-related impacts, risks and
-opportunities
General disclosures - Impacts, risks and opportunity management
E1-2 Policies related to climate change mitigation and adaptation
Climate change (ESRS E1) - Impacts, risks and opportunity management
E1-3 Actions and resources in relation to climate change policies
Climate change (ESRS E1) - Impacts, risks and opportunity management
E1-4 Targets related to climate change mitigation and adaptation
Climate change (ESRS E1) - Metrics and targets
E1-5 Energy consumption and mix
Climate change (ESRS E1) - Metrics and targets
E1-6 Gross Scopes 1, 2, 3 and Total GHG emissions
Climate change (ESRS E1) - Metrics and targets
E2 - Pollution
ESRS 2 IRO-1-E2 Description of the processes to identify and assess material pollution-related impacts, risks and
General disclosures - Impacts, risks and opportunity management
opportunities
General disclosures - Impacts, risks and opportunity management
E2-1 Policies related to pollution
Pollution (ESRS E2) - Impacts, risks and opportunity management
E2-2 Actions and resources related to pollution
Pollution (ESRS E2) - Impacts, risks and opportunity management
E2-3 Targets related to pollution
Pollution (ESRS E2) - Metrics and targets
E2-4 Pollution of air, water and soil
Pollution (ESRS E2) - Metrics and targets
E3 - Water and marine resources
ESRS 2 IRO-1-E3 Description of the processes to identify and assess material water and marine resources-related im-
pacts, risks and opportunities
General disclosures - Impacts, risks and opportunity management
E3-1 Policies related to water and marine resources
Water and marine resources (ESRS E3) - Impacts, risks and opportunity
management
E3-2 Actions and resources related to water and marine resources
Water and marine resources (ESRS E3) - Impacts, risks and opportunity
management
E3-3 Targets related to water and marine resources
Water and marine resources (ESRS E3) - Metrics and targets
E3-4 Water consumption
Water and marine resources (ESRS E3) - Metrics and targets
E4 - Biodiversity and ecosystems
E4-1 Transition plan and consideration of biodiversity and ecosystems in strategy and business model
Biodiversity and ecosystems (ESRS E4) - Strategy
ESRS 2 SBM-3-E4 Material impacts, risks and opportunities and their interaction with strategy and business model
Biodiversity and ecosystems (ESRS E4) - Strategy
ESRS 2 IRO-1-E4 Description of processes to identify and assess material biodiversity and ecosystem-related impacts,
risks dependencies and opportunities
General disclosures - Impacts, risks and opportunity management
E4-2 Policies related to biodiversity and ecosystems
Biodiversity and ecosystems (ESRS E4) - Impacts, risks and opportunity
management
E4-3 Actions and resources related to biodiversity and ecosystems
Biodiversity and ecosystems (ESRS E4) - Impacts, risks and opportunity
management
E4-4 Targets related to biodiversity and ecosystems
Biodiversity and ecosystems (ESRS E4) - Metrics and targets
E4-5 Impact metrics related to biodiversity and ecosystems change
Biodiversity and ecosystems (ESRS E4) - Metrics and targets
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List of material DRs
Reference
- section
in report
E5 - Resource use and circular economy
ESRS 2 IRO-1-E5 Description of the processes to identify and assess material resource use and circular economy-related
impacts, risks and opportunities
General disclosures - Impacts, risks and opportunity management
E5-1 Policies related to resource use and circular economy
Resource use and circular economy (ESRS E5) - Impacts, risks and
opportunity management
E5-2 Actions and resources related to resource use and circular economy
Resource use and circular economy (ESRS E5) - Impacts, risks and
opportunity management
E5-3 Targets related to resource use and circular economy
Resource use and circular economy (ESRS E5) - Metrics and targets
E5-4 Resource inflows
Resource use and circular economy (ESRS E5) - Metrics and targets
E5-5 Resource outflows
Resource use and circular economy (ESRS E5) - Metrics and targets
S1 - Own workforce
ESRS 2 SBM-2-S1 – Interests and views of stakeholders
Own workforce (ESRS S1) - Strategy
ESRS 2 SBM-3-S1 - Material impacts, risks and opportunities and their interaction with strategy and business model
Own workforce (ESRS S1) - Strategy
S1-1 Policies related to own workforce
Own workforce (ESRS S1) - Impacts, risks and opportunity management
S1-2 Processes for engaging with own workforce and workers' representatives about impacts
Own workforce (ESRS S1) - Impacts, risks and opportunity management
S1-3 Processes to remediate negative impacts and channels for own workforce to raise concerns
Own workforce (ESRS S1) - Impacts, risks and opportunity management
S1-4 Taking action on material impacts on own workforce, and approaches to mitigating material risks and pursuing
material opportunities related to own workforce, and effectiveness of those actions
Own workforce (ESRS S1) - Impacts, risks and opportunity management
S1-5 Targets related to managing material negative impacts, advancing positive impacts, and managing material risks and
opportunities
Own workforce (ESRS S1) - Metrics and targets
S1-6 Characteristics of the undertaking’s employees
Own workforce (ESRS S1) - Metrics and targets
S1-8 Collective bargaining coverage and social dialogue
Own workforce (ESRS S1) - Metrics and targets
S1-9 Diversity metrics
Own workforce (ESRS S1) - Metrics and targets
S1-13 Training and skills development metrics
Own workforce (ESRS S1) - Metrics and targets
S1-14 Health and safety metrics
Own workforce (ESRS S1) - Metrics and targets
G1 - Business conduct
ESRS 2 SBM-3-G1 Material impacts, risks and opportunities and their interaction with strategy and business model
Business conduct (ESRS G1) - Impacts, risks and opportunity
-management
ESRS 2 GOV-1-G1 The role of the administrative, management and supervisory bodies
General disclosures - Governance
ESRS 2 IRO-1-G1 Description of the processes to identify and assess material impacts, risks and opportunities
General disclosures - Impacts, risks and opportunity management
G1-1 Business conduct policies and corporate culture
Business conduct (ESRS G1) - Impacts, risks and opportunity
-management
G1-3 Prevention and detection of corruption and bribery
Business conduct (ESRS G1) - Metrics and targets
G1-4 Incidents of corruption or bribery
Business conduct (ESRS G1) - Metrics and targets
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Disclosure requirement and
related datapoint
SFDR reference
Pillar 3 reference
Benchmark regulation
reference
EU climate law
reference
Material/not material
Paragraph reference
annual report
ESRS 2 GOV-1 Board’s gender
diversity paragraph 21 (d)
Indicator number
13 of Table #1 of
Annex 1
Commission Delegated
Regulation (EU) 2020/1816,
Annex II
Material
Governance - Competence
and expertise in governing
bodies
ESRS GOV-1 Percentage
of board members who are
independent paragraph 21 (e)
Delegated Regulation (EU)
2020/1816, Annex II
Material
Governance - Competence
and expertise in governing
bodies
ESRS 2 GOV-4 Statement on
due diligence paragraph 30
Indicator number 10
Table #3 of Annex 1
Material
Governance - Competence
and expertise in governing
bodies
ESRS 2 SBM-1 Involvement in
activities related to fossil fuel
activities paragraph 40 (d) i
Indicators number 4
Table #1 of Annex 1
Article 449a Regulation (EU)
No 575/2013: Commission
Implementing Regulation (EU)
2022/2453 Table 1: Qualitative
information on environmental
risk and Table 2: Qualitative
information on social risk
Delegated Regulation (EU)
2020/1816, Annex II
Not material
N/A
ESRS 2 SBM-1 Involvement in
activities related to chemical
production paragraph 40 (d) ii
Indicator number 9
Table #2 of Annex 1
Delegated Regulation (EU)
2020/1816, Annex II
Not material
N/A
ESRS 2 SBM-1 Involvement
in activities related to
controversial weapons
paragraph 40 (d) iii
Indicator number 14
Table #1 of Annex 1
Delegated Regulation (EU)
2020/1818, Article 12(1)
Delegated Regulation (EU)
2020/1816, Annex II
Not material
N/A
ESRS 2 SBM-1 Involvement in
activities related to cultivation
and production of tobacco
paragraph 40 (d) iv
Delegated Regulation (EU)
2020/1818, Article 12(1)
Delegated Regulation (EU)
2020/1816, Annex II
Not material
N/A
ESRS E1-1 Transition plan to
reach climate neutrality by
2050 paragraph 14
Regulation (EU)
2021/1119,
Article 2(1)
Material
Climate change (ESRS E1)
- Strategy - Transition plan
ESRS E1-1 Undertakings
excluded from Paris-aligned
Benchmarks paragraph 16 (g)
Article 449a Regulation (EU)
No 575/2013; Commission
Implementing Regulation
(EU) 2022/2453 Template 1:
Banking book – Climate change
transition risk: Credit quality of
exposures by sector, emissions
and residual maturity
Delegated Regulation (EU)
2020/1818, Article 12.1 (d) to
(g), and Article 12.2
Not material
N/A
ESRS E1-4 GHG emission
reduction targets paragraph 34
Indicator number 4
Table #2 of Annex 1
Article 449a Regulation (EU)
No 575/2013; Commission
Implementing Regulation (EU)
2022/2453 Template 3: Banking
book – Climate change transi-
tion risk: alignment metrics
Delegated Regulation (EU)
2020/1818, Article 6
Material
Climate change (ESRS E1)
- Metrics and targets
ESRS E1-5 Energy
consumption from fossil
sources disaggregated by
sources (only high climate
impact sectors) paragraph 38
Indicator number
5 Table #1 and
Indicator n. 5 Table
#2 of Annex 1
Material
Climate change (ESRS E1)
- Metrics and targets
ESRS E1-5 Energy consumption
and mix paragraph 37
Indicator number 5
Table #1 of Annex 1
Material
Climate change (ESRS E1)
- Metrics and targets
ESRS E1-5 Energy intensity
associated with activities in
high climate impact sectors
paragraphs 40 to 43
Indicator number 6
Table #1 of Annex 1
Material
Climate change (ESRS E1)
- Metrics and targets
ESRS E1-6 Gross Scope 1, 2,
3 and Total GHG emissions
paragraph 44
Indicators number
1 and 2 Table #1 of
Annex 1
Article 449a; Regulation (EU)
No 575/2013; Commission
Implementing Regulation
(EU) 2022/2453 Template 1:
Banking book – Climate change
transition risk: Credit quality of
exposures by sector, emissions
and residual maturity
Delegated Regulation (EU)
2020/1818, Article 5(1), 6 and
8(1)
Material
Climate change (ESRS E1)
- Metrics and targets
ESRS E1-6 Gross GHG
emissions intensity paragraphs
53 to 55
Indicators number 3
Table #1 of Annex 1
Article 449a Regulation (EU)
No 575/2013; Commission
Implementing Regulation
(EU) 2022/2453 Template 3:
Banking book – Climate change
transition risk: alignment metrics
Delegated Regulation (EU)
2020/1818, Article 8(1)
Material
Climate change (ESRS E1)
- Metrics and targets
ESRS E1-7 GHG removals and
carbon credits paragraph 56
Regulation (EU)
2021/1119,
Article 2(1)
Not material
N/A
ESRS E1-9 Exposure of
the benchmark portfolio to
climate-related physical risks
paragraph 66
Delegated Regulation (EU)
2020/1818, Annex II Delegated
Regulation (EU) 2020/1816,
Annex II
Material
N/A - Phasing in
requirement
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Disclosure requirement and
related datapoint
SFDR reference
Pillar 3 reference
Benchmark regulation
reference
EU climate law
reference
Material/not material
Paragraph reference
annual report
ESRS E1-9 Disaggregation
of monetary amounts by
acute and chronic physical
risk paragraph 66 (a) ESRS
E1-9 Location of significant
assets at material physical risk
paragraph 66 (c).
Article 449a Regulation (EU)
No 575/2013; Commission
Implementing Regulation (EU)
2022/2453 paragraphs 46 and
47; Template 5: Banking book
- Climate change physical risk:
Exposures subject to physical
risk.
Material
N/A - Phasing in
requirement
ESRS 2 GOV-1 Board’s gender
diversity paragraph 21 (d)
Indicator number
13 of Table #1 of
Annex 1
Commission Delegated
Regulation (EU) 2020/1816,
Annex II
Material
Governance - Competence
and expertise in governing
bodies
ESRS GOV-1 Percentage of
board members who are
independent paragraph 21 (e)
Delegated Regulation (EU)
2020/1816, Annex II
Material
Governance - Competence
and expertise in governing
bodies
ESRS 2 GOV-4 Statement on
due diligence paragraph 30
Indicator number 10
Table #3 of Annex 1
Material
Governance - Competence
and expertise in governing
bodies
ESRS 2 SBM-1 Involvement in
activities related to fossil fuel
activities paragraph 40 (d) i
Indicators number 4
Table #1 of Annex 1
Article 449a Regulation (EU)
No 575/2013: Commission
Implementing Regulation (EU)
2022/2453 Table 1: Qualitative
information on environmental
risk and Table 2: Qualitative
information on social risk
Delegated Regulation (EU)
2020/1816, Annex II
Not material
N/A
ESRS 2 SBM-1 Involvement in
activities related to chemical
production paragraph 40 (d) ii
Indicator number 9
Table #2 of Annex 1
Delegated Regulation (EU)
2020/1816, Annex II
Not material
N/A
ESRS 2 SBM-1 Involvement
in activities related to
controversial weapons
paragraph 40 (d) iii
Indicator number 14
Table #1 of Annex 1
Delegated Regulation (EU)
2020/1818, Article 12(1)
Delegated Regulation (EU)
2020/1816, Annex II
Not material
N/A
ESRS 2 SBM-1 Involvement in
activities related to cultivation
and production of tobacco
paragraph 40 (d) iv
Delegated Regulation (EU)
2020/1818, Article 12(1)
Delegated Regulation (EU)
2020/1816, Annex II
Not material
N/A
ESRS E1-1 Transition plan to
reach climate neutrality by
2050 paragraph 14
Regulation (EU)
2021/1119,
Article 2(1)
Material
Climate change (ESRS E1)
- Strategy - Transition plan
ESRS E1-1 Undertakings
excluded from Paris-aligned
Benchmarks paragraph 16 (g)
Article 449a Regulation (EU)
No 575/2013; Commission
Implementing Regulation (EU)
2022/2453 Template 1: Banking
book - Climate change transition
risk: Credit quality of exposures
by sector, emissions and
residual maturity
Delegated Regulation (EU)
2020/1818, Article 12.1 (d) to
(g), and Article 12.2
Not material
N/A
ESRS E1-4 GHG emission
reduction targets paragraph 34
Indicator number 4
Table #2 of Annex 1
Article 449a Regulation (EU)
No 575/2013; Commission
Implementing Regulation (EU)
2022/2453 Template 3: Banking
book – Climate change transi-
tion risk: alignment metrics
Delegated Regulation (EU)
2020/1818, Article 6
Material
Climate change (ESRS E1)
- Metrics and targets
ESRS E1-5 Energy
consumption from fossil
sources disaggregated by
sources (only high climate
impact sectors) paragraph 38
Indicator number
5 Table #1 and
Indicator n. 5 Table
#2 of Annex 1
Material
Climate change (ESRS E1)
- Metrics and targets
ESRS E1-5 Energy consumption
and mix paragraph 37
Indicator number 5
Table #1 of Annex 1
Material
Climate change (ESRS E1)
- Metrics and targets
ESRS E1-5 Energy intensity
associated with activities in
high climate impact sectors
paragraphs 40 to 43
Indicator number 6
Table #1 of Annex 1
Material
Climate change (ESRS E1)
- Metrics and targets
ESRS E1-6 Gross Scope 1, 2,
3 and Total GHG emissions
paragraph 44
Indicators number
1 and 2 Table #1 of
Annex 1
Article 449a; Regulation (EU)
No 575/2013; Commission
Implementing Regulation
(EU) 2022/2453 Template 1:
Banking book – Climate change
transition risk: Credit quality of
exposures by sector, emissions
and residual maturity
Delegated Regulation (EU)
2020/1818, Article 5(1), 6 and
8(1)
Material
Climate change (ESRS E1)
- Metrics and targets
ESRS E1-6 Gross GHG
emissions intensity paragraphs
53 to 55
Indicators number 3
Table #1 of Annex 1
Article 449a Regulation (EU)
No 575/2013; Commission
Implementing Regulation (EU)
2022/2453 Template 3: Banking
book – Climate change transi-
tion risk: alignment metrics
Delegated Regulation (EU)
2020/1818, Article 8(1)
Material
Climate change (ESRS E1)
- Metrics and targets
ESRS E1-7 GHG removals and
carbon credits paragraph 56
Regulation (EU)
2021/1119,
Article 2(1)
Not material
N/A
ESRS E1-9 Exposure of
the benchmark portfolio to
climate-related physical risks
paragraph 66
Delegated Regulation (EU)
2020/1818, Annex II Delegated
Regulation (EU) 2020/1816,
Annex II
Material
N/A - Phasing in
requirement
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Disclosure requirement and
related datapoint
SFDR reference
Pillar 3 reference
Benchmark regulation
reference
EU climate law
reference
Material/not material
Paragraph reference
annual report
ESRS E1-9 Disaggregation of
monetary amounts by acute
and chronic physical risk
paragraph 66 (a) ESRS E1-9
Location of significant assets
at material physical risk para-
graph 66 (c).
Article 449a Regulation (EU)
No 575/2013; Commission
Implementing Regulation (EU)
2022/2453 paragraphs 46 and
47; Template 5: Banking book
- Climate change physical risk:
Exposures subject to physical
risk.
Material
N/A - Phasing in
requirement
ESRS E1-9 Breakdown of the
carrying value of its real estate
assets by energy-efficiency
classes paragraph 67 (c).
Article 449a Regulation (EU)
No 575/2013; Commission
Implementing Regulation (EU)
2022/2453 paragraph 34;Tem-
plate 2:Banking book -Climate
change transition risk: Loans
collateralised by immovable
property - Energy efficiency of
the collateral
Material
N/A - Phasing in
requirement
ESRS E1-9 Degree of
exposure of the portfolio to
climate-related opportunities
paragraph 69
Delegated Regulation (EU)
2020/1818, Annex II
Material
N/A - Phasing in
requirement
ESRS E2-4 Amount of each
pollutant listed in Annex II
of the E-PRTR Regulation
(European Pollutant Release
and Transfer Register) emitted
to air, water and soil, paragraph
28
Indicator number 8
Table #1 of Annex 1
Indicator number 2
Table #2 of Annex 1
Indicator number 1
Table #2 of Annex 1
Indicator number 3
Table #2 of Annex 1
Material
Pollution (ESRS E2) -
Metrics and targets
ESRS E3-1 Water and marine
resources paragraph 9
Indicator number 7
Table #2 of Annex 1
Material
Water and marine resources
(ESRS E3) - Metrics and
targets
ESRS E3-1 Dedicated policy
paragraph 13
Indicator number 8
Table 2 of Annex 1
Not material
N/A
ESRS E3-1 Sustainable oceans
and seas paragraph 14
Indicator number 12
Table #2 of Annex 1
Not material
N/A
ESRS E3-4 Total water recycled
and reused paragraph 28 (c)
Indicator number
6.2 Table #2 of
Annex 1
Material
Water and marine resources
(ESRS E3) - Metrics and
targets
ESRS E3-4 Total water
consumption in m^3 per net
revenue on own operations
paragraph 29
Indicator number
6.1 Table #2 of
Annex 1
Material
Water and marine resources
(ESRS E3) - Metrics and
targets
ESRS 2- SBM-3 - E4 paragraph
16 (a) i
Indicator number 7
Table #1 of Annex 1
Material
Biodiversity and
ecosystems (ESRS E4) -
Strategy
ESRS 2- SBM-3 - E4 paragraph
16 (b)
Indicator number 10
Table #2 of Annex 1
Material
Biodiversity and
ecosystems
(ESRS E4) -
Strategy
ESRS 2- SBM-3 - E4 paragraph
16 (c)
Indicator number 14
Table #2 of Annex 1
Material
Biodiversity and
ecosystems
(ESRS E4) -
Strategy
ESRS E4-2 Sustainable land/
agriculture practices or policies
paragraph 24 (b)
Indicator number 11
Table #2 of Annex 1
Material
N/A - Voluntary disclosure
ESRS E4-2 Sustainable oceans
/seas practices or policies
paragraph 24 (c)
Indicator number 12
Table #2 of Annex 1
Material
N/A - Voluntary disclosure
ESRS E4-2 Policies to address
deforestation paragraph 24 (d)
Indicator number 15
Table #2 of Annex 1
Material
N/A - Voluntary disclosure
ESRS E5-5 Non-recycled waste
paragraph 37 (d)
Indicator number 13
Table #2 of Annex 1
Material
Resource use and circular
economy (ESRS E5) -
Metrics and targets
ESRS E5-5 Hazardous
waste and radioactive waste
paragraph 39
Indicator number 9
Table #1 of Annex 1
Material
Resource use and circular
economy (ESRS E5) -
Metrics and targets
ESRS 2- SBM3 - S1 Risk of
incidents of forced labour
paragraph 14 (f)
Indicator number 13
Table #3 of Annex I
Not material
N/A
ESRS 2- SBM3 - S1 Risk of
incidents of child labour
paragraph 14 (g)
Indicator number 12
Table #3 of Annex I
Not material
N/A
ESRS S1-1 Human rights policy
commitments paragraph 20
Indicator number
9 Table #3 and
Indicator number 11
Table #1 of Annex I
Not material
N/A
ESRS S1-1 Due diligence
policies on issues addressed by
the fundamental International
Labour Organisation
Conventions 1 to 8,
paragraph 21
Delegated Regulation (EU)
2020/1816, Annex II
Material
Own workforce (ESRS S1)
- Policies
ESRS S1-1 processes and
measures for preventing
trafficking in human beings
paragraph 22
Indicator number 11
Table #3 of Annex I
Not material
N/A
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Disclosure requirement and
related datapoint
SFDR reference
Pillar 3 reference
Benchmark regulation
reference
EU climate law
reference
Material/not material
Paragraph reference
annual report
ESRS S1-1 workplace accident
prevention policy or manage-
ment system paragraph 23
Indicator number 1
Table #3 of Annex I
Material
Own workforce (ESRS S1)
- Policies
ESRS S1-3 grievance/com-
plaints handling mechanisms
paragraph 32 (c)
Indicator number 5
Table #3 of Annex I
Material
Own workforce (ESRS S1)
- Policies
ESRS S1-14 Number of
fatalities and number and
rate of work-related accidents
paragraph 88 (b) and (c)
Indicator number 2
Table #3 of Annex I
Delegated Regulation (EU)
2020/1816, Annex II
Material
Own workforce (ESRS S1) -
Metrics and targets
ESRS S1-14 Number of days
lost to injuries, accidents,
fatalities or illness paragraph
88 (e)
Indicator number 3
Table #3 of Annex I
Material
Own workforce (ESRS S1) -
Metrics and targets
ESRS S1-16 Unadjusted gender
pay gap paragraph 97 (a)
Indicator number 12
Table #1 of Annex I
Delegated Regulation (EU)
2020/1816, Annex II
Not material
N/A
ESRS S1-16 Excessive CEO pay
ratio paragraph 97 (b)
Indicator number 8
Table #3 of Annex I
Not material
N/A
ESRS S1-17 Incidents of dis-
crimination paragraph 103 (a)
Indicator number 7
Table #3 of Annex I
Not material
N/A
ESRS S1-17 Nonrespect of UN-
GPs on Business and Human
Rights and OECD Guidelines
paragraph 104 (a)
Indicator number
10 Table #1 and
Indicator n. 14 Table
#3 of Annex I
Delegated Regulation (EU)
2020/1816, Annex II Delegated
Regulation (EU) 2020/1818 Art
12 (1)
Not material
N/A
ESRS 2- SBM3 – S2 Significant
risk of child labour or forced
labour in the value chain para-
graph 11 (b)
Indicators number
12 and n. 13 Table
#3 of Annex I
Not material
N/A
ESRS S2-1 Human rights policy
commitments paragraph 17
Indicator number
9 Table #3 and
Indicator n. 11 Table
#1 of Annex 1
Not material
N/A
ESRS S2-1 Policies related to
value chain workers paragraph
18
Indicator number 11
and n. 4 Table #3 of
Annex 1
Not material
N/A
ESRS S2-1 Nonrespect of UN-
GPs on Business and Human
Rights principles and OECD
guidelines paragraph 19
Indicator number 10
Table #1 of Annex 1
Delegated Regulation (EU)
2020/1816, Annex II Delegated
Regulation (EU) 2020/1818,
Art 12 (1)
Not material
N/A
ESRS S2-1 Due diligence
policies on issues addressed by
the fundamental International
Labour Organisation
Conventions 1 to 8, paragraph
19
Delegated Regulation (EU)
2020/1816, Annex II
Not material
N/A
ESRS S2-4 Human rights issues
and incidents connected to
its upstream and downstream
value chain paragraph 36
Indicator number 14
Table #3 of Annex 1
Not material
N/A
ESRS S3-1 Human rights policy
commitments paragraph 16
Indicator number 9
Table #3 of Annex
1 and Indicator
number 11 Table #1
of Annex 1
Not material
N/A
ESRS S3-1 non-respect of UN-
GPs on Business and Human
Rights, ILO principles or OECD
guidelines paragraph 17
Indicator number 10
Table #1 Annex 1
Delegated Regulation (EU)
2020/1816, Annex II Delegated
Regulation (EU) 2020/1818,
Art 12 (1)
Not material
N/A
ESRS S3-4 Human rights issues
and incidents paragraph 36
Indicator number 14
Table #3 of Annex 1
Not material
N/A
ESRS S4-1 Policies related
to consumers and end-users
paragraph 16
Indicator number 9
Table #3 and Indica-
tor number 11 Table
#1 of Annex 1
Not material
N/A
ESRS S4-1 Non-respect of UN-
GPs on Business and Human
Rights and OECD guidelines
paragraph 17
Indicator number 10
Table #1 of Annex 1
Delegated Regulation (EU)
2020/1816, Annex II Delegated
Regulation (EU) 2020/1818,
Art 12 (1)
Not material
N/A
ESRS S4-4 Human rights issues
and incidents paragraph 35
Indicator number 14
Table #3 of Annex 1
Not material
N/A
ESRS G1-1 United Nations
Convention against Corruption
paragraph 10 (b)
Indicator number 15
Table #3 of Annex 1
Material
Business conduct (ESRS
G1) - Promoting a Culture
of integrity
ESRS G1-1 Protection of
whistle-blowers paragraph
10 (d)
Indicator number 6
Table #3 of Annex 1
Material
Business conduct (ESRS
G1) - Promoting a Culture
of integrity
ESRS G1-4 Fines for violation of
anti-corruption and anti-brib-
ery laws paragraph 24 (a)
Indicator number 17
Table #3 of Annex 1
Delegated Regulation (EU)
2020/1816, Annex II)
Material
Business conduct (ESRS
G1) - Metrics and targets
ESRS G1-4 Standards of an-
ti-corruption and anti- bribery
paragraph 24 (b)
Indicator number 16
Table #3 of Annex 1
Material
Business conduct (ESRS
G1) - Promoting a Culture
of integrity
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The UN Sustainable Development Goals
are an integral part of our strategy
The UN Sustainable Development Goals (SDGs), adopted by world leaders in
September 2015, are a call for action for all countries and businesses to
promote prosperity while protecting the planet. Norske Skog supports all 17
SDGs but realise that some are more relevant to our business than others. We
believe that we can make the greatest difference and contribute positively
through the prioritised SDGs highlighted in the illustration. In 2023 Norske
Skog added one more prioritised SDG, which is number 6 regarding clean
water and sanitation, in addition to the already five prioritised SDGs in 2022.
Higher public awareness concerning clean water and despite effective
wastewater treatment plants, Norske Skog will face severe public attention in
occurrences of unwanted discharges or breach of wastewater emission
permits. We have summarised what the prioritised SDGs mean to us in one
sentence:
Norske Skog shall create value for people and society
in a responsible way, while promoting a sustainable
environment and principles of circular economy.
The 17 Sustainable Development Goals (SDGs) are important for Norske
Skog’s business operations for several key reasons:
• Alignment with global priorities: The SDGs represent a universal call to
action to end poverty, protect the planet, and ensure prosperity for all. By
aligning with the SDGs, Norske Skog demonstrates commitment to
addressing pressing global challenges and contributing to sustainable
development.
• Risk management: The SDGs highlight critical sustainability issues,
including climate change, social inequality, and environmental degradation.
By integrating the SDGs into our operations, our business units can identify
and mitigate risks associated with these challenges, safeguarding their
long-term viability and resilience.
• Enhanced reputation and brand value: Embracing the SDGs may enhance
our reputation and brand value by demonstrating our commitment to social
and environmental responsibility. Contributing actively to achieving the
SDGs may attract socially conscious consumers, investors, and partners,
gaining a competitive advantage in the marketplace.
• Innovation and market opportunities: The SDGs present significant
opportunities for innovation and market growth. Our ability to develop
sustainable products, services, and business models aligned with the SDGs
may drive customer loyalty and capture new revenue streams.
• Regulatory compliance and license to operate: Governments, regulatory
bodies, and international organisations increasingly incorporate the SDGs
into policy frameworks and reporting requirements. By integrating the
SDGs into our operations, we ensure compliance with relevant regulations,
maintain their social license to operate, and avoid reputational and legal
risks.
• Access to capital and investment: Investors are increasingly considering
environmental, social, and governance (ESG) factors when making
investment decisions. Aligning with the SDGs may attract sustainable
investment capital, access financing at favourable terms, and enhance their
appeal to socially responsible investors.
•
Supply chain resilience: Integrating the SDGs into supply chain management
practices enhance resilience, traceability, and transparency throughout the
value chain. Our business units may work with suppliers to promote ethical
sourcing, reduce environmental impact, and ensure social responsibility,
mitigating risks associated with supply chain disruptions and reputational
damage.
•
Employee engagement and talent attraction: We believe that embracing the
SDGs will foster employee engagement, satisfaction, and retention by
providing meaningful opportunities for employees to contribute to positive
social and environmental impact. Business units that prioritise sustainability
and social responsibility may also attract top talent aligned with our values
and mission.
The SDGs provide a comprehensive framework for our operations to address
sustainability challenges, manage risks, seize opportunities, and create long-
term value for stakeholders, society, and the planet. By integrating the SDGs
into our business strategy, we believe it will positively impact our operations,
foster innovation, and contribute to a more sustainable and prosperous future
for all.
Norske Skog business units have during the last 50 years been seeking best
environmental practice, and the reported figures show great progress in the
same period. The group has achieved significant results in collaboration with
stakeholders, national authorities, and employee initiatives. Norske Skog has
been nationally recognised for its labour practices and excellent work
environment.
Our operations must be based on sustainable sourcing by using certified wood
and chips documented through the Chain of Custody certifications and use of
recycled paper. Improved margins and reduced environmental impacts from
the value chain and the mills are achieved through effective resource and
energy management. We monitor activities to achieve sustainable products
and processes throughout the entire value chain.
In addition, Norske Skog continuously strives to maintain our status as the
most attractive industry partner for suppliers and customers. The corporate
strategy consists of three elements and gives us a well-defined foundation for
our work related to the prioritised SDGs:
•
Improve and optimise publication paper cash flows
•
Become a leading and independent European producer of renewable pack-
aging paper
•
Integrate vertically within the entire value chain
To make the SDG targets relevant for the board, management and the rest of
the group, the intention was to align and integrate the 5 prioritised sustainable
development goals to the resolved strategic goals already effectuated by the
board of directors.
The following six sustainable development goals that were selected to be
most relevant to the existing strategy:
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SDG 3:
Good health and wellbeing (no change)
SDG 4:
Quality education (no change)
SDG 6:
Clean water and sanitation (no change)
SDG 9:
Industry, innovation and infrastructure (no change)
SDG 12:
Responsible consumption and production (no change)
SDG 13:
Climate action (no change)
THE REASON AND ANALYSIS BEHIND THE SELECTION ARE:
SDG
Justification to prioritise the SDG
SDG
3
Good health and
wellbeing
Good health and wellbeing is not only a moral imperative but also a strategic decision that can benefit Norske Skog, its
stakeholders, and society as a whole. By investing in health and wellbeing initiatives, the company can create positive
impacts that extend beyond its operations and contribute to a healthier, more sustainable future.
SDG
4
Quality education
Investing in quality education enables Norske Skog to develop a skilled and knowledgeable workforce. By providing
employees with access to education and training programmes, the company can enhance productivity, innovation, and
overall performance. By supporting educational initiatives, such as scholarships, vocational training, or school infrastructure
improvements, the company can help improve access to quality education for children, youth, and adults in these
communities. Quality education plays a critical role in succession planning and ensuring the long-term viability of Norske
Skog's business. By investing in employee training and development, the company can cultivate a pipeline of talent and
leadership capabilities to support future growth and continuity.
SDG
6
Water and clean
sanitation
Improve water quality by reducing pollution, minimising hazardous chemical release, and adopting sustainable water
management practices, is crucial for Norske Skog to promote environmental stewardship, comply with regulations, protect
public health, ensure sustainable operations, mitigate risks, and meet stakeholder expectations.
SDG
9
Industry,
innovation and
infrastructure
Industry, innovation, and infrastructure aligns with Norske Skog's commitment to sustainability, competitiveness, and
long-term business success. By investing in innovation and infrastructure, the company can drive positive social, economic,
and environmental impacts while positioning itself for future growth and resilience in a rapidly changing world.
SDG
12
Responsible
consumption and
production
Norske Skog works proactive to implement measures to improve production efficiency, optimise raw material usage, and
reduce energy consumption, leading to cost savings and enhanced competitiveness. Norske Skog adopts circular business
models, such as recycling paper, process residues, reusing by-products, and exploring alternative materials, contributing to
a more sustainable and resilient economy. Responsible consumption and production align with Norske Skog's sustainability
objectives, business values, and long-term viability. By adopting responsible practices, the company can drive positive
environmental and social impacts while maintaining competitiveness and fostering stakeholder trust and loyalty.
SDG
13
Climate action
Climate action is essential for Norske Skog to mitigate climate risks, reduce emissions, transition to renewable energy,
promote sustainable forestry practices, adapt to climate impacts, and meet stakeholder expectations, thereby contributing
to global efforts to address climate change and build a more sustainable future.
THESE 6 SDGS ARE AN INTEGRAL PART OF OUR BUSINESS STRATEGY:
Establish renewable
packaging
Improve and optimise
Intergrate vertically
Packaging paper
Publication paper
Up- and downstream
value chain
Ambition
Strategy
Prioritised SDGs
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Appendix
List of Abbreviations in the Sustainability Statement
Abbreviation Explanation
AIB
Association of Issuing Bodies – An organisation providing emission factors for
electricity in European markets.
AOX
Adsorbable Organic Halides – Chlorinated organic compounds potentially formed in
bleaching processes (not used by Norske Skog).
AR
Assessment Report – Refers to reports from the Intergovernmental Panel on Climate
Change (IPCC).
BAT
Best Available Technology – EU reference values for environmental performance in
paper and pulp production.
BCTMP
Bleached Chemi-Thermomechanical Pulp – A type of pulp production process
mentioned in Norske Skog’s projects.
BECCS
Bioenergy with Carbon Capture and Storage – A technology for capturing and
storing biogenic CO
2
emissions.
BP
Basis for Preparation – Refers to ESRS 2 section on general basis for sustainability
statements.
BREF
Best Available Techniques Reference Document – EU guidelines for industrial
emissions in the paper industry.
CapEx
Capital Expenditure – Investments in assets and processes, reported under EU
Taxonomy.
CCM
Climate Change Mitigation – An EU Taxonomy category for activities contributing to
climate goals.
CEPI
Confederation of European Paper Industries – An industry association for paper
recycling and sustainability.
CEMAsys
CEMAsys – A Nordic ESG consulting firm assisting with climate-related scenario
analysis.
COD
Chemical Oxygen Demand – A measure of organic substances in wastewater
discharges.
CO2
Carbon Dioxide – A greenhouse gas emitted from operations and value chain
activities.
CSRD
Corporate Sustainability Reporting Directive – EU directive (2022/2464) mandating
sustainability reporting.
DEFRA
Department for Environment, Food & Rural Affairs – UK source for emission factors
in GHG calculations.
DMA
Double Materiality Assessment – Process to identify material impacts, risks, and
opportunities under ESRS.
DNV GL
Det Norske Veritas Germanischer Lloyd – Provider of Synergi Life, a risk
management tool (now DNV).
DNSH
Do No Significant Harm – EU Taxonomy criteria ensuring activities do not harm
environmental objectives.
EACs
Energy Attribute Certificates – Certificates for renewable energy (e.g., Guarantees of
Origin).
EcoTransit
EcoTransit – A tool for calculating emissions from transportation and distribution.
EL
Eligible – EU Taxonomy status for activities meeting eligibility criteria.
E-PRTR
European Pollutant Release and Transfer Register – EU regulation for reporting
pollutant emissions.
ERM
Enterprise Risk Management – A tool for risk assessment (not used separately by
Norske Skog).
ESG
Environmental, Social, and Governance – Metrics for sustainability reporting and
performance.
ESRS
European Sustainability Reporting Standards – EU standards for sustainability
disclosures.
ETS
Emissions Trading System – EU system for trading greenhouse gas emission
allowances.
EU
European Union – Supranational entity referenced in regulations and directives.
EUDR
EU Deforestation Regulation – EU regulation requiring traceability to prevent
deforestation.
FSC
Forest Stewardship Council – Certification scheme for sustainable forest
management.
FTE
Full-Time Equivalent – Measure of employee headcount based on full-time work
equivalents.
GHG
Greenhouse Gas – Gases contributing to climate change, measured in emissions
scopes.
GOV
Governance – ESRS 2 section on governance disclosures.
GVE
Green Valley Energie – Joint venture for biomass boiler at Norske Skog Golbey.
HR
Human Resources – Department handling employee management and development.
HSEQ
Health, Safety, Environment, and Quality – Managers responsible for sustainability at
mills.
IA
Inclusive Workplace – Norwegian agreement to reduce sickness absence and
promote inclusion.
IBAT
Integrated Biodiversity Assessment Tool – Tool for identifying biodiversity-sensitive
areas.
IEA
International Energy Agency – Source for climate scenarios and energy outlooks.
ILO
International Labour Organisation – UN agency for labour rights and standards.
IPCC
Intergovernmental Panel on Climate Change – UN body providing climate
assessments.
IRO
Impacts, Risks, and Opportunities – Key elements assessed in double materiality.
ISO
International Organisation for Standardization – Standards for quality (9001),
environment (14001), energy (50001).
JV
Joint Venture – Business partnership, e.g., Green Valley Energie.
KPI
Key Performance Indicator – Metrics for tracking performance, e.g., in EU Taxonomy.
LEAP
Locate, Evaluate, Assess, Prioritise – Approach for assessing pollution-related
impacts.
LNG
Liquefied Natural Gas – Fossil fuel affecting energy prices.
LTI
Lost Time Injuries – Rate of work-related injuries causing absence.
MDR-T
Materiality Determination Requirement - Targets – ESRS element for reviewing
targets.
MFR
Management Focus Report – Monthly report on health, safety, and environmental
data.
N
Nitrogen – Pollutant in wastewater discharges.
NA
Not Applicable – Used in EU Taxonomy reporting for irrelevant categories.
N/EL
Not Eligible – EU Taxonomy status for activities not meeting criteria.
NIBIO
Norwegian Institute of Bioeconomy Research – Institute for biodiversity and
ecosystem research.
NIVA
Norwegian Institute for Water Research – Organisation monitoring water quality.
NOx
Nitrogen Oxides – Air pollutants from boilers and energy production.
OECD
Organisation for Economic Co-operation and Development – Guidelines for
multinational enterprises.
OCC
Old Corrugated Containers – Recycled material for containerboard production.
OpEx
Operational Expenditure – Costs related to maintenance and operations under EU
Taxonomy.
P
Phosphorus – Pollutant in wastewater discharges.
PEFC
Programme for the Endorsement of Forest Certification – Scheme for sustainable
forestry.
PM
Particulate Matter / Paper Machine – Air pollutant or production equipment
(context-dependent).
PPE
Personal Protective Equipment – Safety gear for workers.
REPL
Read Eval Print Loop – Code execution environment (mentioned in tools, not core
text).
SBM
Strategy and Business Model – ESRS 2 section on strategy disclosures.
SFDR
Sustainable Finance Disclosure Regulation – EU regulation for financial sustainability
reporting.
SO2
Sulphur Dioxide – Air pollutant from boilers.
SSP
Shared Socioeconomic Pathways – IPCC scenarios for climate assessments.
SS
Suspended Solids – Pollutant in wastewater discharges.
Synergi Life
Synergi Life – DNV GL tool for operational risk management.
TCFD
Task Force on Climate-related Financial Disclosures – Framework for climate risk
assessment.
TFB
Treforedlingsindustriens Bransjeforening (Norwegian Pulp and Paper Association)
TMP
Thermomechanical Pulping – Process for converting wood into pulp.
Tot-N
Total Nitrogen – Measure of nitrogen in wastewater.
Tot-P
Total Phosphorus – Measure of phosphorus in wastewater.
TRI
Total Recordable Injuries – Rate of work-related accidents.
UN
United Nations – Global organisation for human rights and sustainability.
UNGPs
United Nations Guiding Principles – Principles on Business and Human Rights.
VOCs
Volatile Organic Compounds – Air pollutants from operations.
VTT
VTT Technical Research Centre of Finland – Source for emission factors in printed
products.
WEO
World Energy Outlook – IEA report on energy scenarios.
WRI
World Resources Institute – Provider of Aqueduct Water Risk Atlas tool.
WtE
Waste-to-Energy – Boiler technology converting waste to energy.
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Board of directors statement on
corporate governance
Norske Skog ASA is the ultimate parent company of the Norske Skog group,
which is a paper manufacturing group with production and sales operations in
Europe. Norske Skog’s goal is to increase shareholder value, through profitable
and sustainable production of publication and packaging paper as well as other
fibre and energy related business. Norske Skog ASA is a Norwegian registered
public limited liability company listed on the Euronext Oslo Børs and is subject
to Norwegian law, including Norwegian and EU securities legislation and stock
exchange regulations.
The board of directors of Norske Skog has a strong focus on ensuring compliance
with applicable corporate governance standards. Norske Skog is subject to
reporting requirements for corporate governance pursuant to Section 2-9 of the
Norwegian Accounting Act and complies with the Norwegian Code of Practice
for Corporate Governance (the “Code”, see www.nues.no, English pages). The
Code was last revised on 28 August 2025.
Corporate governance principles as referred to in this statement define roles
and responsibilities, powers, and processes, between and within governing
bodies, such as the general meeting, the board of directors and the corporate
management. For further information on corporate bodies and corporate
governance matters, please visit Norske Skog’s website www.norskeskog.com/
sustainability/governance.
Corporate governance is continuously addressed by the board of directors, and
the board of directors has approved this corporate governance statement.
There are no material amendments to the corporate governance statement
compared to the corporate governance statement included in the annual report
for 2024. The amendments made are mainly reflecting the changes made to the
Norske Skog Corporate Governance Policy in 2025 to adapt to the latest revision
of the Code
1.
Implementation and reporting on corporate
governance
This corporate governance statement follows the structure of the Code
published on 28 August 2025. Deviations from the Code shall be explained
where relevant in this statement, together with a summary of all deviations in
this section 1.
There are currently no deviations from the Code.
The corporate governance principles adopted by Norske Skog are set out in the
company’s Corporate Governance Policy and are fundamental for the company’s
corporate governance and value creation. Norske Skog’s Corporate Governance
Policy is based on the Code and, as such, it is designed to establish a basis for
good corporate governance and to support achievement of the company’s core
objectives on behalf of its shareholders, including the achievement of profitability
for the shareholders of Norske Skog in a sustainable manner. The way Norske
Skog is governed is vital to the development of its value over time.
Norske Skog believes that good corporate governance involves openness,
honesty and cooperation between all parties involved in and with the group: the
shareholders, the board of directors and executive management, employees,
customers, suppliers, public authorities, and the society in general.
By pursuing the principles set out in the Corporate Governance Policy, the board
of directors and management shall contribute to achieving the following
objectives:
• Openness and honesty. Communication with the interest groups of Norske
Skog shall be based on openness and honesty on issues relevant for the
evaluation of the development and position of the company.
• Independence. The relationship between the board of directors, the
management and the shareholders shall be based on independence.
Independence shall ensure that decisions are made on an unbiased and
neutral basis.
•
Equal treatment. One of Norske Skog’s primary objectives is equal treatment
and equal rights for all shareholders.
• Control and management. Good control and corporate governance
mechanisms shall contribute to predictability and reduce the level of risks for
shareholders and other interest groups.
The development of, and improvements in, the company’s Corporate Governance
Policy are ongoing and important processes that the board of directors and
management have continuous focus on.
Deviations from the Code: None.
2.
Business
Norske Skog’s business purpose is set out in the Articles of Association, article
2: “The company’s objective is to conduct wood processing industry, investing
activities and activities related to this, as well as providing headquarter services
for the group, including raise of external loans and conducting group financing
arrangements.” The Articles of Association are available on the company’s
website, www.norskeskog.com/investors/articles-of-association. The business
of the company is conducted in accordance with the targets, strategies and risk
profile determined by the board of directors, within the scope of the company’s
business purpose, to realise value creation for the shareholders in a sustainable
manner. The board of directors considers the targets, strategies, and risk profile
of the company on a continuous basis.
The company has established guidelines and principles which are used to
integrate considerations to human rights, decent working conditions, employee
rights and social matters, the external environment and anticorruption and other
compliance efforts in its business strategies, its day-today operations and in
relation to its stakeholders. This includes but is not limited to the Norske Skog
Steering Guidelines and the Code of Conduct. Compliance with the Steering
Guidelines and the Code of Conduct is mandatory for all employees in the group
and others acting on the group’s behalf, and similar conduct and ethical
standards are expected from suppliers, customers, other business relations and
in partnerships, joint ventures, and partially owned subsidiaries. The Steering
Guidelines and the Code of Conduct can be found on the company’s website,
www.norskeskog.com/sustainability/governance/steering-guidelines.
Sustainability and corporate social responsibility are integrated parts of the
group’s business and are described in the sustainability report section of the
annual report.
Deviations from the Code: None.
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3.
Equity and dividends
SHARE CAPITAL
The share capital of Norske Skog is set out in the Articles of Association, article
4. The company’s share capital at year end 2025 was NOK 339
352 940,
divided into 84
838 235
shares, each with a nominal value of NOK 4.00
.
EQUITY
The board of directors is responsible for ensuring that the group is adequately
capitalised relative to the risk and scope of operations and that the capital
requirements set forth in laws and regulations are met. The company shall have
an equity capital at a level appropriate to its objectives, strategy, and risk
profile. The board of directors shall continuously monitor the group’s capital
situation and shall immediately take adequate steps if the company’s equity or
liquidity is less than adequate.
Norske Skog’s consolidated total equity as at 31 December 2025 was
NOK 5
819 million, which is equivalent to 39.6% of total assets (for Norske Skog
ASA, the total equity was NOK 4
199 million, which is equivalent to 56.9% of total
assets).
DIVIDEND POLICY
It follows from Norske Skog’s Corporate Governance Policy that the company
shall, always, have a clear and predictable dividend policy established by the
board of directors. The dividend policy forms the basis for the board of
directors’ proposals on dividend payments to the company’s general meeting.
The company’s dividend policy is to pay dividends reflecting the underlying
earnings and cash flow while ensuring efficient capital allocation in the group.
When deciding the dividend level, the board of directors will among other
things take into consideration capital expenditure plans, financing requirements
and maintaining the appropriate strategic flexibility of the group.
Dividend payments are restricted under the group’s financing facilities to a
maximum of 50% of net profit for the previous financial year, and are subject to
that the leverage ratio does not exceed 1.50x following the relevant dividend
payment.
CAPITAL INCREASES AND ISSUANCE OF SHARES
The general meeting in 2025 authorised the board of directors to increase the
share capital one or several times with an aggregate amount of up to
NOK 33
935 294,
equivalent to 10% of the company’s share capital. The
authorisation may be used for general corporate purposes, including, but not
limited to, financing of the company’s strategic plans and in connection with
acquisitions of companies or other businesses. The authorisation was granted
for the period up to the annual general meeting in 2026. As of the date hereof,
the authorisation has not been used.
The general meeting in 2025 furthermore authorised the board of directors to
acquire own shares with a total nominal value of up to NOK 33
935 294,
equivalent to 10% of the company’s share capital. The authorisation may be
used to optimise the company’s capital structure. The authorisation was
granted for the period up to the annual general meeting in 2026. As of the date
hereof, the authorisation has not been used.
The Articles of Association do not include provisions regarding share capital
increases, issuance of shares or purchase of own shares.
Deviations from the Code: None.
4.
Equal treatment of shareholders
The company has only one class of shares. Each share in the company carries
one vote, and all shares carry equal rights, including the right to participate in
general meetings. All shareholders shall be treated on an equal basis unless
there is just cause for treating them differently.
In the event of an increase in share capital through issuance of new shares, a
decision to deviate from existing shareholders’ pre-emptive rights to subscribe
for shares shall be justified. The board of directors shall in the event of a
proposed deviation specifically explain and provide reasons for the proposal,
both when the share capital increase is resolved by the general meeting and
when the share capital increase is made through an authorisation granted to
the board of directors by the general meeting. The justification will be publicly
disclosed in a stock exchange announcement issued in connection with the
share issuance and shall specifically state how the consideration of equal
treatment of shareholders has been taken into account.
Any transactions in treasury shares carried out by the company shall be carried
out on the Oslo Børs, and in any case at the prevailing stock exchange price. If
there is limited liquidity in the company’s shares, the company will consider
other ways to ensure equal treatment of shareholders. Any transaction in
treasury shares by the company is subject to notification requirements and
shall be publicly disclosed in a stock exchange announcement.
Deviations from the Code: None.
5.
Shares and negotiability
The shares of the company are freely negotiable and there are no limitations on
any party’s ability to own or vote for shares in the company.
Deviations from the Code: None.
6.
General meetings
The general meeting is the shareholders’ forum and the supreme governing
body of the company. The Articles of Association do not limit the shareholders’
rights as provided by the Public Limited Liability Companies Act. The board of
directors sets the agenda for the general meeting. The minutes from the
general meeting are published externally and on the company’s website, in
accordance with applicable laws and deadlines.
The board of directors shall ensure that as many of the company’s shareholders
as possible are able to exercise their voting rights at the company’s general
meetings, and that the general meeting is an effective forum for shareholders
and the board of directors, which shall be facilitated through the following:
• the resolutions and any supporting documentation shall be sufficiently
detailed, comprehensive, and specific allowing shareholders to understand
and form a view on all matters to be considered at the general meeting.
•
deadlines for shareholders to give notice of their attendance at the general
meeting shall be set as close to the date of the general meeting as practically
possible.
•
the board of directors and the chair of the nomination committee shall be
present at general meetings, while other members of the nomination
committee as well as the auditor shall be present at general meetings where
matters of relevance for such committees/persons are on the agenda; and
• the board of directors shall ensure that the general meeting can elect an
independent chair for the general meeting.
The shareholders shall be able to vote on each of the matters on the agenda
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and shall be able to vote separately on each candidate at elections. Shareholders
who are unable to be present at the general meeting, or for other reasons so
desire, shall be given the opportunity to vote electronically through VPS in
advance of the general meeting, be represented by proxy and to vote by proxy.
The company shall in this respect:
•
provide information on the procedure for voting electronically in advance of
the general meeting.
•
provide information on the procedure for attending by proxy.
•
nominate a person who will be available to vote on behalf of shareholders as
their proxy; and
•
prepare a proxy form, which shall, to the extent this is possible, be set up so
that it is possible to vote on each of the items on the agenda and the
candidates nominated for election.
Deviations from the Code: None.
7.
Nomination committee
Pursuant to the Articles of Association, article 8, the company shall have a
nomination committee consisting of between one and three members. The
company’s general meeting elects the members and the chair of the nomination
committee and determines their remuneration. The majority of the members
of the nomination committee shall be independent from the company’s board
of directors and executive management. The members of the nomination
committee shall not be members of the board of directors or the executive
management, and not offer themselves for election to the board of directors.
The composition of the nomination committee should be such that the
interests of shareholders in general are represented. The nomination
committee currently consists of three members, Richard Heiberg, who serves
as the chair of the committee, Gert Steens and Rune Smestad.
The general meeting shall approve the instructions for the nomination
committee. These instructions set out the objectives, responsibilities, and
functions of the nomination committee, and provide guidelines for rotation of
its members. The company shall provide information regarding the composition
of the nomination committee, the members of the nomination committee and
any deadlines for submitting proposals to the nomination committee as part of
its recommendations to the general meeting.
The nomination committee shall recommend candidates for the election of
members and chair of the board of directors, candidates for the election of
members and chair of the nomination committee, and remuneration of the
members of the board of directors, its board committees, and the nomination
committee.
The nomination committee shall have contact with shareholders, the board of
directors on individual basis and the company’s executive personnel as part of
its work on proposing candidates for election to the board.
The nomination committee’s recommendation of candidates to the nomination
committee shall ensure that they represent a broad group of the company’s
shareholders. The nomination committee’s recommendation of candidates to
the board of directors shall ensure that the board of directors is composed to
comply with legal requirements and principles of corporate governance. The
nomination committee shall justify why it is proposing each candidate
separately. The proposals from the nomination committee shall include a
reasoning for its proposal, as well as a statement on how it has carried out its
work. The nomination committee’s proposal shall include information about
the candidates and shall be made available at the latest in accordance with the
21 days’ notice rule to call for a general meeting. Shareholders shall be given
the opportunity to submit proposals to the nomination committee for
candidates for election to the board of directors and other appointments in a
simple and practical manner and information on how to submit proposals shall
be included on the company’s website. Any date for when such proposals
must be submitted to be considered by the nomination committee shall be
specified as part of such information. The nomination committee of Norske
Skog are, however, available to receive proposals for candidates or other input
from shareholders at any time throughout the year.
Deviations from the Code: None.
8.
The board of directors’ composition and
independence
According to the Articles of Association, the board of directors of Norske Skog
shall have between three and eight board members, and board members are
elected for a period of two years unless another term is determined by the
general meeting. The current number of board members is four, and in addition
there are two observers to the board of directors being union representatives
from each of the two Norwegian mills. Prior board member Christoffer Bull
(elected at the annual general meeting in 2023) resigned from the board of
directors with effect from 1 January 2026 as a consequence of being
employed in the role as SVP Business Development with the company.
The composition of the board of directors should ensure that the board of
directors has the expertise, capacity and diversity needed to achieve the
company’s goals, handle its main challenges, and promote the common
interests of all shareholders. Each board member should have sufficient time
available to devote to his or her appointment as a board member. The number
of board members should be determined on this basis. Furthermore, individuals
of the board of directors shall be willing and able to work as a team, resulting
in the board of directors working effectively as a collegial body. Further
requirements to the composition of the board of directors are set out in the
instructions for the nomination committee, as further described in section 7
above. The company does not have separate guidelines for equality and
diversity in the composition of the board of directors, management and control
bodies and their sub-committees for the reason that adequate regulations are
considered to be provided for in the Norwegian Public/Private Limited Liability
Companies Act, the Norwegian Equality and Non-Discrimination Act and the
principles promoted in the Norske Skog group on equality and diversity, as
further described in the sustainability statement in the report of the board of
directors.
The board of directors shall be composed so that it can act independently of
any special interests. A majority of the shareholder-elected members of the
board of directors shall be independent of the executive management and
material business connections of the company. At least two of the members of
the board of directors shall be independent of the executive management and
material business connections of the company. At least two of the members of
the board of directors shall be independent of shareholders that owns or
controls 10% or more of the company’s shares or votes, meaning that there are
no circumstances or relations that may be expected to be able to influence the
independence of the board members’ assessments.
The members of the board of directors and the chair of the board of directors
shall be elected by the company’s general meeting. No member of the
company’s executive management shall be a member of the board of directors.
At least half of the members of the board of directors shall reside in Norway or
another EEA country. Both genders shall be represented on the board of
directors in compliance with the gender representation requirements set out in
section 6-11a of the Norwegian Public Limited Liability Companies Act. The
term of office for the board members shall not be longer than two years at a
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time. Members of the board of directors may be re-elected. The election of the
members to the board of directors should be phased so that the entire board of
directors is not replaced at the same time.
The following table summarises the roles of the members of the board of
directors and meeting attendance at board meetings held in 2025:
Name (i)
Residence
Role
Committee memberships
Board meetings
attended
Board
member since
End of
term
Arvid Grundekjøn
Oslo, Norway
Chair
Audit committee and remuneration committee
10/10
2018
2027
Trine-Marie Hagen
(ii)
Oslo, Norway
Board member
Audit committee and remuneration committee
2/2
2019
2025
Christoffer Bull
(iii)
Oslo, Norway
Board member
Remuneration committee
10/10
2023
2027
Tone Wille
(iv)
Oslo, Norway
Board member
N/A
2/2
2024
2026
Terje Sagbakken
Gjøvik, Norway
Board member
Audit committee
10/10
2024
2026
Eva Karlsson Berg
(v)
Karlstad, Sweden
Board member
N/A
8/8
2025
2027
Trude Ulven
(v)
Løten, Norway
Board member
Remuneration committee
8/8
2025
2027
(i)
Please refer to the description in the board of directors’ section of the annual report for further information on the expertise, experience and independence of the members of the board of directors,
as well as the board members’ respective shareholdings in the company. Comments have been provided in the following for board members who have not served in their roles for the whole of 2025.
(ii) Trine-Marie Hagen’s term as a board member ended at the annual general meeting in 2025 and she participated in 2 of the 2 board meetings held prior to the annual general meeting in 2025.
(iii) Christoffer Bull resigned as a board member with effect from 1 January 2026 as a consequence of being employed in the role as SVP Business Development with the company.
(iv) Tone Wille resigned as a board member with effect from the annual general meeting in 2025 and she participated in 2 of the 2 board meetings held prior to the annual general meeting in 2025.
(v) Eva Karlsson Berg and Trude Ulven were elected as new board members by the annual general meeting in 2025 and participated in 8 of the remaining 8 board meetings in 2025.
The board members have a statistic attendance at board meetings of 100% as
described in further detail in the schedule above.
Members of the board of directors are encouraged to own shares in the
company. However, caution should be taken not to let this encourage a
shortterm approach, which is not in the best interests of the company and its
shareholders in the longer term.
The nomination committee’s proposal to the general meeting (as further
described in item 7 above) shall include detailed information on candidates for
the board of directors (both appointments and re-elections) and shall be
made available at the latest in accordance with the 21 days’ notice rule to call
for a general meeting.
Deviations from the Code: None.
9.
The work of the board of directors
The board of directors’ main tasks comprises the overall responsibility for the
management of the company and overseeing the daily administration and
operations of the company. The work of the board of directors is carried out in
accordance with the rules and standards applicable to the group, as described
in the company’s Corporate Governance Policy’s instructions to the board of
directors. The instructions to the board of directors include detailed
description of duties and responsibilities of the board members, as well as
working and meeting procedures. The Corporate Governance Policy’s
instructions to the board of directors and the instructions to the CEO include
procedures for how the board of directors and executive management shall
handle agreements with related parties, including whether an independent
valuation must be obtained. Agreements with related parties are described in
Note 31 Related parties in the consolidated financial statements.
The board of directors prepares an annual plan for its work, clearly setting out
strategic, financial, operational, and organisational matters for discussion and
resolution. In addition to addressing the matters on such plan, the board of
directors continuously addresses matters and processes which require the
board of directors’ involvement from time to time. Throughout 2025 and into
2026, the board of directors has in addition to recurring matters concentrated
a significant amount of time on the strategic development and projects of the
group. Among the most important strategic projects of the group worked on by
the board of directors during 2025 is the finalisation, start-up and ramp-up of
the converted containerboard paper machine at the Norske Skog Golbey mill in
France and studies of operational alternatives at the Norske Skog Saugbrugs
mill in Norway. In addition, the board of directors allocated significant time to
optimise the financing structure of the group over the course of 2025, as well
as certain asset sale processes, in particular at the Norske Skog Saugbrugs mill
in Norway. Furthermore, efforts and results within the areas of health,
environment and safety are annually reported comprehensively to the board of
directors, and the CEO reports on health, environment and safety, operations,
and market developments in every board meeting. The board of directors
actively manages the resources of the board of directors and its committees in
accordance with the relative strategic and commercial importance of matters.
The board of directors has two sub-committees, an audit committee, as
required by the Public Limited Liability Companies Act, and a remuneration
committee. The members of the audit committee are Arvid Grundekjøn (chair)
and Terje Sagbakken. The members of the remuneration committee are Arvid
Grundekjøn (chair) and Trude Ulven. The company’s Corporate Governance
Policy includes a set of instructions for each of the committees, describing
defined areas of responsibility. The committees undertake preparatory
discussions and submit their recommendations to the board of directors.
The audit committee focused on the company’s financing structure, financial
reporting and internal control function during 2025. The CEO attends the
meetings of the remuneration committee, except if excused for discussions on
the CEO’s remuneration.
The following table summarises the meeting attendance of the board members
at board and committee meetings held in 2025:
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10.
Risk management and internal control
The board of directors is responsible for ensuring that the company has sound
and appropriate internal control systems and systems for risk management,
and that these systems are proportionate to and reflect the extent and nature
of the company’s activities. Having effective internal control systems and
systems for risk management in place are important to prevent the group from
situations that can damage its reputation and financial standing. Furthermore,
effective, and proper internal control and risk management are important
factors when building and maintaining trust, to reach the company’s objectives,
and ultimately create value. Having in place an effective internal control
system means that the company is better suited to manage commercial risk,
operational risk, the risk of breaching legislation and regulations as well as
other forms of risk that may be material to the company. As such, there is a
correlation between the company’s internal control systems and effective risk
management. The internal control system shall also address the organisation
and execution of the company’s financial reporting, as well as cover the
company’s guidelines for how it integrates considerations related to
stakeholders into its creation of value. Norske Skog shall comply with all laws
and regulations that apply to the group’s business activities.
Norske Skog’s enterprise risk management processes are based on COSO’s
Enterprise Risk Management framework, and cover financial, operational,
market and organisational risks. By this delineation of risk control, all
sustainability and responsibility areas covered by Norske Skog’s Steering
Guidelines are also covered by its enterprise risk management processes and
is reported to the board of directors. The system is based on the management
teams in each business unit and in key corporate functions annually reporting
potential risk factors to the company’s risk management function, which in
turn provide a basis for the agenda of the corporate management meetings
and adequate follow-up measures. In addition, Norske Skog reports on
sustainability in accordance with CSRD. The review of the sustainability
statement is carried out by an independent and internationally recognised
audit firm, currently PwC. Further information on sustainability is provided in
the sustainability statement in the report of the board of directors.
The internal control systems within the finance organisation primarily cover
the financial reporting structure and processes. Routines for internal control
over financial reporting are defined in Norske Skog’s internal control
documentation (Financial Reporting Manual, Financial Closing Manual and
Financial Closing Checklist). Responsibilities are clearly defined in terms of
execution, documentation, and control. As part of the continuous focus on
compliance, regular reviews of business processes, investments or other
issues are carried out. These compliance processes are carried out on the
basis of risk assessments and support the business in improving internal
control and achieving the set goals. The group also has a power of attorney
structure which describes and regulates financial empowerment to individual
positions.
In addition, Norske Skog has implemented internal routines to ensure
continuous attention and efforts on maintaining high compliance standards
throughout the group. These internal routines are set out in Norske Skog’s
Continuous Compliance Programme and include a number of compliance
related activities that shall be carried out over the course of a calendar year.
Norske Skog has clearly established channels and procedures for reporting
and handling instances of possible serious misconduct (whistleblowing). Such
channels are described on our website, intranet and in the Steering Guidelines.
It is the opinion of the board of directors that Norske Skog’s internal control
and systems for risk management are adequate and proportionate to the
nature and complexity of the company’s operations and financial situation.
Deviations from the Code: None.
Name (i)
Committee memberships
Board meetings
attended
Audit committee
meetings attended
Remuneration committee
meetings attended
Arvid Grundekjøn
Audit committee and remuneration committee
10/10
6/6
2/2
Trine-Marie Hagen
(ii)
Audit committee and remuneration committee
2/2
2/2
2/2
Christoffer Bull
(iii)
Remuneration committee
10/10
N/A
N/A
Terje Sagbakken
Audit committee
10/10
4/4
N/A
Trude Ulven
(iv)
Remuneration committee
8/8
N/A
N/A
(i)
Please refer to the description in the board of directors’ section of the annual report for further information on the expertise, experience and independence of the members of the board of directors,
as well as the board members’ respective shareholdings in the company.
(ii) Trine-Marie Hagen’s term as a board member ended at the annual general meeting in 2025 and she participated in 2 of the 2 meetings of each of the board, audit committee and remuneration
committee held prior to the annual general meeting in 2025.
(iii) Christoffer Bull was appointed as a member of the remuneration committee at a later time than the committee meetings held in 2025. He resigned as a board member with effect from 1 January 2026
as a consequence of being employed in the role as SVP Business Development with the company.
(iv) Trude Ulven was elected as a new board member by the annual general meeting in 2025 and appointed as a member of the remuneration committee at a later time than the committee meetings held
in 2025.
The board members have a statistic attendance at committe meetings of
100%. In 2025, the board of directors held ten meetings and one matter was
resolved by written resolutions. The audit committee held six meetings in
2025. The remuneration committee held two meeting in 2025. The meetings
of the board of directors and its committees are held as physical meetings,
with the possibility to participate by video conference if board members are
prevented from participating in person. Representation at meetings of the
board of directors is at 100% (see the schedule included under item 8 above
for further details) and representation at committee meetings is at 100%.
The board of directors shall annually evaluate its performance and expertise
for the previous year. This evaluation shall include the composition of the
board of directors and the way its members functions, both individually and as
a group, in relation to the objectives set out for its work. The report shall be
made available to the nomination committee.
Deviations from the Code: None.
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11.
Remuneration of the board of directors
The remuneration of the board of directors is decided by the annual general
meeting on the basis of the nomination committee’s proposal. The committee
considers the level of responsibility, complexity and time consumption, as well
as the required expertise, for the board members. Proposals for annual
adjustments of the remuneration of the board of directors are based on
considerations to ensure that Norske Skog remains attractive and competitive
on the market for governing bodies’ competencies.
No board member has carried out specific tasks or commissions for the
company in addition to the directorship, and Norske Skog has not paid other
remuneration to any board member than the ordinary board remuneration.
Separate remuneration is set for the chair and members of the board of
directors and respective committees under the board of directors. The current
remuneration amounts are as follows:
1. The remuneration for the chair of the board is NOK 606
000 per year.
2. The remuneration for the other members of the board is NOK 342
000 per year.
3. The remuneration for the chair of the audit committee is NOK 135
000 per year.
4. The remuneration for other members of the audit committee is NOK 55
000 per
year.
5. The remuneration for the chair of the remuneration committee is NOK 33
000
per year.
6. The remuneration for other members of the remuneration committee is
NOK 22
000 per year.
7. Travel expenses in connection with board and committee meetings are
paid in accordance with the Norwegian Government’s Travel Allowance
Regulation.
The total remuneration for the board of directors in 2025, including committee
work, was NOK 2
190 000.
For further information, please refer to the report
on salary and other remuneration to leading personnel, which is available on
the
company’s
website,
www.norskeskog.com/sustainability/governance/
remuneration-of-leading-personnel.
Deviations from the Code: None.
12.
Remuneration of executive personnel
The board of directors has adopted guidelines for determining salary and
other remuneration to leading personnel in accordance with Section 6-16 a of
the Public Limited Liability Companies Act and the Regulation on guidelines
and reporting on remuneration for leading personnel. In the preparation of the
guidelines and in any subsequent amendments to these, the focus of the
board of directors is to provide for that the guidelines are clear and easily
understandable, and that they contribute to the company’s commercial
strategy, long-term interests and financial viability. Furthermore, the
company’s arrangements in respect of salary and other remuneration shall be
simple and contribute to aligning the interests of leading personnel and
shareholders, with an absolute limit on performance-related remuneration.
The guidelines are presented for approval by the general meeting if significant
changes are made, and at least every fourth year. The current version of the
guidelines was approved by annual general meeting in 2025 and are available
on the company’s website, www.norskeskog.com/sustainability/governance/
remuneration-of-leading-personnel.
The CEO’s remuneration terms are reviewed and decided annually by the
board of directors following preparatory discussions in the board of directors’
remuneration committee. The remuneration consists of base salary, annual
performance bonus, pension, and other benefits. The decision on the CEO’s
remuneration takes into consideration the overall performance of the CEO and
the company, and the market development for CEO remuneration in companies
of similar complexity, size and industries. The remuneration of other leading
personnel is determined by the CEO, and the performance related remuneration
consist of the same elements as for the CEO.
Performance based elements are calculated on the basis of quantifiable
objective targets as well as on quantifiable targets falling within areas over
which the respective executives have a reasonable influence.
In addition, Norske Skog has established a long-term incentive programme
based on synthetic stock options. The programme mirrors the financial
outcome of an actual stock option with an initial “exercise price” (which
corresponds to the price per share set at the time of award of the options) and
a mechanic to fix a “fair market value” in the future when the options are
exercised (3-5 years following award of the options). The long-term incentive
programme is described in the guidelines for determining salary and other
remuneration to leading personnel, which are available on the company’s website,
www.norskeskog. com/sustainability/governance/remuneration-of-leading-
personnel.
The board of directors shall for each financial year provide for the preparation
of a report on salary and other remuneration to leading personnel in
accordance with Section 6-16 b of the Public Limited Liability Companies Act
and the Regulation on guidelines and reporting on remuneration for leading
personnel. The report is subject to an advisory vote by the annual general
meeting and is published on the company’s website, www.norskeskog.com,
following the annual general meeting. In addition, information about
remuneration of corporate management is available in the financial statements,
in Note 10 Employee benefit expenses in the consolidated financial statements.
Deviations from the Code: None.
13.
Information and communications
The company has established guidelines for its reporting of financial and
other information based on openness and taking into account the requirement
of equal treatment in the securities market. These guidelines are set out in the
company’s Communication Policy and the Investor Relations Policy. The
company’s Investor Relations Policy is based on Oslo Børs’ rules, regulations
and recommendations for listed companies, in particular the Oslo Børs Code
of Practice for IR.
The company provides, timely and on a continuous basis, precise information
about the company and its operations to its shareholders, the Oslo Børs and
the securities market and the financial market in general. Such information is
published through the Oslo Børs’ information system and the company’s
website. Information is typically given in the form of annual reports, half-year
reports, quarterly reports, press releases, stock exchange notices and through
published investor presentations in accordance with what is deemed
appropriate and required at any given time. Financial reporting follows
International Financial Reporting Standards, and through open and proactive
communication with investors and financial markets, including through regular
presentations, Norske Skog ensures transparency and equality to facilitate
our stakeholders’ assessment of the company. The company furthermore
regularly provides information on its long-term potential, including strategies,
value drivers and risk factors. Information to Norske Skog’s investors will also
be published simultaneously through the Oslo Børs’ information system and/
or the company’s website.
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The company publishes an annual, electronic financial calendar with an
overview of dates for important events, such as the annual general meeting,
interim financial reports, public presentations, and payment of dividends, if
applicable. The information is made available in English and Norwegian.
Unless there are applicable exemptions that is appropriate to utilise in the
specific situation, Norske Skog promptly discloses all inside information (as
defined in article 7 of the EU Market Abuse Regulation). In addition, Norske
Skog provides information about certain events, e.g. by the board of directors
and the general meeting concerning dividends, mergers/demergers or
changes to the share capital, the issuing of subscription rights, convertible
loans and all agreements of major importance that are entered into by Norske
Skog and related parties.
Separate guidelines have been implemented regarding handling of inside
information, and these follow from the instructions for handling of inside
information and the instructions for primary insiders. The rules of procedure
for the board of directors set out who in the board of directors that are entitled
to publicly speak on behalf of the company, and the Communication Policy
defines the responsibility of communications on behalf of the company in
various matters.
Deviations from the Code: None.
14.
Take-overs
The board of directors has established clear principles in the Corporate
Governance Policy for how it will act in the event of a take-over bid, including
that it will act in accordance with the Code and Norwegian law. The principles
emphasise the importance of equal treatment of existing shareholders. They
further warrant that the board of directors will ensure sufficient information in
time and content for the shareholders to assess a possible bid, including
issuing a statement to the shareholders with the board of directors’ assessment
of such bid, together with a valuation prepared by an independent expert. A
sale of a significant part of the company will require approval by the general
meeting. The board of directors will not without decision by the general
meeting attempt to hinder a take-over bid for the company.
Deviations from the Code: None.
15. Auditor
The auditor presents an annual audit plan, describing the auditor’s
understanding of the industry and significant risks, as well as the audit
approach to be applied. The auditor participates in audit committee meetings
when discussing the financial statements and other audit related matters. The
auditor furthermore attends board meetings at which the annual financial
statements are on the agenda and as otherwise requested. At such meetings,
the auditor is requested to report on any material changes in the company’s
accounting principles and key aspects of the audit, comment on any material
estimated accounting figures and report all material matters on which there
has been disagreement between the auditor and the executive management
of the company. The auditor annually confirms its independence in writing.
During 2025 and 2026, the auditor has participated in all meetings of the
audit committee. Furthermore, the auditor has met with the board of directors
without the corporate management being present and reviewed the company’s
internal control procedures. The company has effective guidelines for the
ability of the auditor to perform non-audit services for the company upon
approval by the audit committee. The company informs the general meeting
about the auditor’s fees for audit and non-audit services.
The board of directors regularly assesses the quality and efficiency of the
work of the auditor.
Deviations from the Code: None.
SKØYEN, 25 MARCH
2026
THE BOARD OF DIRECTORS OF NORSKE SKOG ASA
Arvid Grundekjøn
Chair
Trude Ulven
Board member
Eva Karlson Berg
Board member
Geir Drangsland
CEO
Terje Sagbakken
Board member
APPENDIX
/
REPORT OF THE BOARD OF DIRECTORS
4
Annual report 2025
I
Norske Skog
I
129
Norske Skog Saugbrugs
Photo: Stein Johnsen
Consolidated financial statements
Consolidated income statement
132
Consolidated statement of comprehensive income
132
Consolidated balance sheet
133
Consolidated statement of cash flows
134
Consolidated statement of changes in group equity
135
Notes to the consolidated financial statements
1
General information
136
2
Basis of preparation
136
3
Important accounting estimates and assumptions
137
4
Consideration of climate risk for the financial statements
137
5
Financial risk
138
6
Reporting segments
140
7
Revenue
142
8
Other operating income
143
9
Cost of materials
144
10
Employee benefit expenses
144
11
Other operating expenses
147
12
Derivatives and other fair value adjustment
147
13
Associated companies and joint ventures
148
14
Financial items
148
15
Income tax
148
16
Earnings and dividend per share
151
17
Intangible assets
152
18
Property, plant and equipment
153
19
Leases
156
20
Shares
157
21
Derivatives
158
22
Financial instruments
160
23
Receivables and other non-current assets
162
24
Inventories
163
25
Cash and cash equivalents
163
26
Discontinued operations
164
27
Pension and other employee obligations
167
28
Provisions
171
29
Interest-bearing liabilities
172
30
Trade and other payables, other current and non-current liabilities
174
31
Related parties
175
32
Events after the balance sheet date
175
Consolidated
financial statements
Annual report 2025
I
Norske Skog
I
131
CONSOLIDATED FINANCIAL STATEMENTS
CONSOLIDATED INCOME STATEMENT
NOK MILLION
NOTE
2025
2024
Operating revenue
7
Other operating income
8
Total operating income
Distribution costs
-1 036
-1 005
Cost of materials
9
-6 232
-5 927
Employee benefit expenses
10
-1 619
-1 702
Other operating expenses
11
-827
-803
Restructuring expenses
28
-5
-16
Depreciation
17, 18
-557
-481
Impairments
18
-121
Derivatives and other fair value adjustments
12
-178
Total operating expenses
-9 919
-10 232
Operating earnings
6
-60
Share of profit in associated companies and joint ventures
13
-65
Financial income
14
Financial expense
14
-333
-351
Gains/(losses) on foreign currency
14
-175
Profit/(loss) before income taxes
-566
Income taxes
15
-94
Profit/(loss) after taxes
-661
Profit/(loss) from discontinued operations
26
-37
-321
Profit/(loss) for the period
-982
Earnings per share from continuing operations (NOK)
Basic earnings per share
16
-7.79
Diluted earnings per share
16
-7.79
Earnings per share (NOK)
Basic earnings per share
16
-11.57
Diluted earnings per share
16
-11.57
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
NOK MILLION
NOTE
2025
2024
Profit/(loss) after taxes
-661
Profit/(loss) from discontinued operations
26
-37
-321
Items that may be reclassified subsequently to profit or loss
Currency translation differences
Reclassified translation differences upon divestment of foreign operations
-7
Total
Items that will not be reclassified subsequently to profit or loss
Remeasurements of post employment benefit obligations
-14
Tax effect on remeasurements of post employment benefit obligations
-4
Total
-13
Other comprehensive income continuing operations
Other comprehensive income discontinued operations
26
Total other comprehensive income
Total comprehensive income
-777
CONSOLIDATED FINANCIAL STATEMENTS
132
I
Norske Skog
I
Annual report 2025
CONSOLIDATED BALANCE SHEET
NOK MILLION
NOTE
31.12.2025
31.12.2024
Assets
Deferred tax assets
15
Intangible assets
17
Property, plant and equipment
6, 18, 19
Investment in associated companies
13
Other non-current assets
23, 27
Total non-current assets
Inventories
6, 24
Trade and other receivables
6, 23
Other current assets
23
Cash and cash equivalents
5, 25
Total current assets excluding assets classified as held for sale
Assets held for sale
26
Total current assets
Total assets
Equity and liabilities
Paid-in equity
Other equity
-3 042
-3 476
Total equity
Employee benefit obligations
27
Deferred tax liability
15
Interest-bearing non-current liabilities
29
Other non-current liabilities
28, 30
Total non-current liabilities
Trade and other payables
30
Tax payable
15
Interest-bearing current liabilities
29
Other current liabilities
28, 30
Total current liabilities excluding assets classified as held for sale
Liabilities relating to assets classified as held for sale
26
Total current liabilities
Total liabilities
Total equity and liabilities
SKØYEN, 25 MARCH
2026
THE BOARD OF DIRECTORS OF NORSKE SKOG ASA
Arvid Grundekjøn
Chair
Trude Ulven
Board member
Eva Karlson Berg
Board member
Geir Drangsland
CEO
Terje Sagbakken
Board member
CONSOLIDATED FINANCIAL STATEMENTS
Annual report 2025
I
Norske Skog
I
133
CONSOLIDATED STATEMENT OF CASH FLOWS
NOK MILLION
NOTE
2025
2024
Cash generated from operations
6
Cash used in operations
-9 803
-11 540
Cash flow from currency hedges and financial items
-41
-69
Interest payments received
14
Interest payments made
14
-229
-230
Taxes paid
15
-9
Net cash flow from operating activities
1)
6
-15
Purchases of property, plant and equipment and intangible assets
6, 17, 18
-982
-1 558
Sales of property, plant and equipment and intangible assets
18
Proceeds from property damage insurance
8
Sales of shares in companies and other financial instruments
25
-91
Net cash flow from investing activities
-328
-1 198
New loans raised
29
Repayments of loans
29
-501
-2 086
Net cash flow from financing activities
-105
Foreign currency effects on cash and cash equivalents
-21
Total change in cash and cash equivalents
-95
-1 286
Cash and cash equivalents at start of period
Cash and cash equivalents
Cash and cash equivalents included in assets held for sale
26
Cash and cash equivalents at end of period
25
1)
Reconciliation of net cash flow from operating activities
Profit/(loss) before income taxes from continuing operations
-566
Profit/(loss) before income taxes from discontinued operations
26
-37
-321
Change in working capital
-37
Change in restructuring provisions
28
-3
-15
Depreciation and impairments
18
Derivatives and other fair value adjustments
12
-358
Gain and losses from divestment of business activities and property, plant and equipment
-2
Income from insurance compensation
8
-560
-448
Net financial items without cash effect
-16
Taxes paid
15
-9
Change in pension obligations and other employee benefits
-29
-35
Adjustment for other items
-9
Net cash flow from operating activities
-15
CONSOLIDATED FINANCIAL STATEMENTS
134
I
Norske Skog
I
Annual report 2025
CONSOLIDATED STATEMENT OF CHANGES IN GROUP EQUITY
NOK MILLION
PAID-IN-
EQUITY
1)
OTHER PAID-IN
EQUITY
2)
TOTAL PAID-IN
EQUITY
RETAINED
EARNINGS
TOTAL
EQUITY
Equity 1 January 2024
-2 700
Profit/(loss) after tax
-982
-982
Other comprehensive income
Equity 31 December 2024
-3 476
Profit/(loss) after tax
Other comprehensive income
Equity 31 December 2025
-3 042
1) Paid-in equity consists of share capital NOK 339 million (84 838 235 shares with a nominal value of NOK 4.00) and share premium of NOK 6 272 million.
2) Other paid-in equity arises from a de-recognition of debt in 2018.
CONSOLIDATED FINANCIAL STATEMENTS
Annual report 2025
I
Norske Skog
I
135
CONSOLIDATED FINANCIAL STATEMENTS
Norske Skog
Annual report 2025
136
I
I
Notes to the consolidated financial
statements
General information
Packaging paper includes testliner and fluting and publication paper includes
newsprint and magazine paper. The annual production capacity of packaging
paper will be 0.8 million tonnes when fully ramped up during first half of 2027
and the annual publication paper production capacity is 1.2 million tonnes
.
Packaging paper and publication paper are sold through sales offices and
agents.
The group had 1
652 employees (FTE) at 31 December 2025 and the parent
company, Norske Skog ASA public limited liability company incorporated
in Norway Sjølyst
Basis of preparation
The consolidated financial statements comprise the financial statements of
Norske Skog ASA and its subsidiaries. The consolidated financial statements
are prepared in accordance with IFRS® Accounting Standards (IFRS
Accounting Standards) as adopted by the European Union (EU) (IFRS). The
consolidated financial statements are presented in English only. All amounts
are presented in NOK million unless otherwise stated. There may be some
small differences in the summation of columns and rows due to rounding. The
corresponding amounts for prior year are in parenthesis. The consolidated
financial statements were authorised for issue by the board of directors in
Norske Skog ASA on 25 March 2026.
historical cost in all areas where there is no requirement to use fair value. The
policies have been consistently applied to all periods presented, unless
otherwise stated. They have been prepared under the assumption of going
During 2024, Norske Skog initiated a sales process for its remaining
operations in Australasia. The transaction was completed in April 2025.
Norske Skog Industries Australia Ltd with subsidiaries represented the
segment publication paper Australasia. On 31 December 2024, publication
paper Australasia was classified as a disposal group held for sale and as a
discontinued operation. With publication paper Australasia being classified
as discontinued operations, the segment is no longer presented in the
segment note.
The financial statements of each of the group’s entities are prepared using
the local currency of the economic location in which the entity operates (the
“functional currency”). The consolidated financial statements are presented
in NOK, which is both the functional and presentational currency of the parent
company.
The table below shows the average monthly foreign exchange rates applied in
the income statement and the closing exchange rates applied in the balance
sheet for the most important currencies for the group.
INCOME STATEMENT | BALANCE SHEET | |||
2025 | 2024 | 31.12.2025 | 31.12.2024 | |
EUR | 11.72 | 11.62 | 11.84 | 11.80 |
GBP | 13.68 | 13.74 | 13.57 | 14.22 |
USD | 10.39 | 10.75 | 10.08 | 11.35 |
b) Transactions and balances
Foreign currency transactions are translated into the entity’s functional
currency using the exchange rate prevailing on the date of the transaction.
Foreign exchange gains or losses resulting from the settlement of such
transactions and from the translation of monetary assets and liabilities
denominated in foreign currencies at year-end exchange rates are recognised
in the income statement.
Exchange differences arising from the settlement of trade receivables/
payables and unrealised gains/losses on the same positions are recognised in
operating revenue/cost of materials respectively. Exchange differences
arising from the settlement of other items are recognised within financial
income/financial expenses.
Foreign exchange gains and losses that relate to borrowings and cash and
cash equivalents are presented in the income statement within financial
Non-monetary items that are measured at fair value in a foreign currency are
translated using the exchange rates at the date when the fair value was
determined. Translation differences on assets and liabilities carried at fair
value are reported as part of the fair value gain or loss.
c) Group companies
The results and financial position of all group entities which have a functional
currency different from the presentational currency are translated into the
presentational currency as follows:
i. Assets and liabilities for each balance sheet presented are translated at
the closing rate at the date of that balance sheet,
ii. Income and expenses for each income statement are translated at average
exchange rates on monthly basis,
iii. All resulting exchange differences are booked to comprehensive income
CONSOLIDATED FINANCIAL STATEMENTS
Annual report 2025
Norske Skog
137
I
I
On consolidation, exchange differences arising from the translation of the net
investment in foreign entities are booked as part of comprehensive income.
When a foreign operation is derecognised, such exchange differences are
booked out of comprehensive income and recognised in the income statement
NEW AND AMENDED INTERPRETATION AND STANDARDS ADOPTED
BY THE GROUP
a) New standards effective from 1 January 2025
Changes in standards and interpretations during 2025 have not had any
material impact on Norske Skog’s financial reporting.
b) New standards, interpretations and amendments not yet effective
IFRS 18 Presentation and Disclosure in Financial Statements
IFRS 18 Presentation and Disclosure in Financial Statements will replace IAS 1
Presentation of Financial Statements. The new standard will be effective for
annual reporting periods beginning on or after 1 January 2027, with earlier
application permitted. Norske Skog does not plan to adopt the amendments
before the effective date.
The main purpose of IFRS 18 is to change the presentation to reduce diversity
in reporting and improve consistency between entities, particularly regarding
income statements. IFRS 18 does not change how items are recognised or
measured.
The changes from IAS 1 to IFRS 18 can be summarised in three main sections:
•
New categories and subtotals in the income statement
•
Localisation and disaggregation of accounting information
•
Requirements for disclosure of management-defined performance measures
The standard introduces new requirements for presentation of line items and
subtotals in the income statement. It is structured into five defined categories:
Operating (new), Investing (new), Financing (new), Income taxes, and
Discontinued operations, and three mandatory subtotals: Operating profit
(new), Profit before financing and income taxes (new), and Profit or loss.
Norske Skog is currently assessing the impact of IFRS 18, and the three new
categories, and expects the majority of items to be included in the operating
category.
Further, the standard enhances the guidance to whether information should
be presented in the primary statements or in the notes.
In addition, IFRS 18 requires disclosures for management defined performance
measures in a separate note, including reconciliation to the official IFRS
figures.
Norske Skog is considering whether the new requirements in IFRS 18
will lead to changes in Norske Skog’s’ current alternative performance
measures (which to present, and how they will be defined).
The group does not expect the other issued, but not yet effective, standards
or amendments to such standards, to have a material impact on the group’s
Important accounting estimates and assumptions
The preparation of consolidated financial statements in conformity with IFRS
requires the use of accounting estimates and assumptions for the future. It
also requires management to exercise its judgment in the process of applying
the group’s accounting policies. Estimates and assumptions, which represent
a significant risk of a material adjustment in the carrying amount of assets and
liabilities during the coming financial year, are discussed below.
instruments
Norske Skog’s portfolio of energy contracts consists mainly of physical energy
contracts of which some contain embedded derivatives. The fair value of
embedded derivatives in physical contracts is influenced by price index
fluctuations and fluctuations in foreign currency forward prices.
Norske Skog has energy contracts in Norway that do not fulfil the criteria for
use of the “own use exemption”. Therefore, the contracts in whole are treated
as financial derivatives in the scope of IFRS 9 and measured at fair value
through profit or loss. The fair value of the contracts will vary dependent on
the market price for energy in Norway.
The fair value of financial instruments that are not traded in an active market
is determined by using valuation techniques. The group uses its judgment to
select methods and make assumptions that are mainly based on market
conditions existing at each balance sheet date. See Note 12 and Note 21 for
b) Recoverable amount of intangible assets and property, plant and
equipment (PPE)
The group performs impairment tests to assess whether there has been a
decline in the value of intangible assets and PPE if there are impairment
indicators present. These are written down to their recoverable amount when
the recoverable amount is lower than the carrying value of the asset. The
recoverable amount from assets or cash-generating units is determined by
calculating the higher of fair value less costs to sell and value in use. Value in
use is the present value of the future cash flows expected to be derived from
an asset or cash-generating unit. Calculation of value in use requires use of
estimates. See Note 18 for further information. The group conducts annual
reviews of the remaining economic life of PPE. An increase or decrease in the
remaining economic life will have an impact on future depreciation, as well as
. Consideration of climate risk for the financial
statements
In preparing the financial statements, the board of directors have assessed
and considered the impact of climate change, particularly in the context of the
risks and opportunities identified in the Double Materiality Assessment in line
with the new EUDR requirements. The time horizons applied for the overall
assessment of risks and opportunities for the group is short term (< 1 year),
medium term (1- 5 years) and long-term (> 5 years).
Norske Skog business units have during the last 50 years been seeking best
environmental practice and have one of the lowest emission levels compared
to industry averages.
The transformation to a larger, more diversified product portfolio with new
products will reduce the dependency on publication paper and thus reduce
the business and market risk. The current packaging production at Norske
Skog Bruck and Norske Skog Golbey is based on renewable resources.
Production of publication and packaging paper is resource intensive and
requires significant quantities of energy. The goal is to continue to reduce
energy consumption in production, eliminate the use of fossil energy sources
and to optimise the use of process chemicals and transport. Our operations
are impacted by unstable energy markets and increasing carbon prices.
Norske Skog has included a reduction of greenhouse gas emissions from fossil
energy sources as a key part of our business strategy.
CONSOLIDATED FINANCIAL STATEMENTS
Norske Skog
Annual report 2025
138
I
I
We have identified the following climate-related risks as the most significant:
•
Regulatory:
Norske Skog is subject to several regulatory requirements
relating to energy and emissions including the EU Emissions Trading
Scheme (ETS), which include both CO2 compensation schemes, and CO2
allowances. Due to the financial impact any changes in such regulations
may have on our business we monitor associated risks closely.
•
Physical:
The availability of sustainable and affordable biomass to produce
publication paper in Norway and Austria may be affected by longer-term
shifts in climate patterns in the future. Some of our mills are in areas where
drought/access to water and/or flooding might become a risk in the future
with a changing climate.
•
Market:
Shifting consumer preferences and trends may impact demand for
Norske Skog products made from biomass. This can impact market
development for publication paper, recycled containerboard, and related
capacity adjustments in the industry.
•
Reputational:
Compliance with environmental regulations and standards is
crucial for avoiding fines, legal fees, and reputational damage. Norske
Skog’s ability to manage regulatory risks may affect its financial stability
and long-term viability.
The financial statements may be impacted by climate related risk in the future
but are not considered to be key areas of judgement or sources of estimation
uncertainty in the current financial year. The effects may be related to:
•
CO2 compensation and CO2 allowances may be cut back and increase our
cost of production. This may affect the value of our main assets in Europe if
the increase in cost cannot be recovered in the prices of our products.
Implementation of the EU Carbon Border Adjustment Mechanism (CBAM)
coming into effect may, if effective, increase the probability of recovery of
any increased cost of carbon emissions.
• Impairment of our property, plant and equipment due to a change in the
profitability from cost increases for carbon emissions and price of energy or
due to shortened useful life due to physical risks that reduce the appetite
for reinvestment, thereby reducing the time horizon for certain plants. See
also Note 9 and 18.
Whilst there is currently no short-term impact expected from changes in
climate, the board of directors are aware of the risk changes in climate could
pose to the operations and the judgement and estimates made in preparation
Financial risk
FINANCIAL RISK MANAGEMENT
The main risk exposures for the group are linked to uncertainty to price and
volume developments for publication and packaging paper and the costs of
key input factors such as energy and fibre. Weaker demand than expected for
the group’s products can affect profitability and associated cash flows in a
negative way. The group operates in a multicurrency environment, where the
main currencies of importance for the business are EUR, GBP and USD.
Currency movements between these currencies, as well as against NOK, may
influence demand as well as product prices and costs of key input factors.
Liquidity is ensured by maintaining sufficient cash balances and credit lines
linked to trade receivables facilities. Norske Skog continuously assess the
most competitive funding sources for the group.
Uncertainty about future changes in the broader economic climate develop-
ment and more adverse developments than expected may influence all of the
above and future results. The factors are an inherent uncertainty when the
board makes its assessments.
The group has one cash pool which is legally placed in Norske Skog ASA.
FINANCIAL RISK FACTORS
The group is exposed to various financial risk factors through the group’s
operating activities, including market risk (interest rate risk, currency risk and
commodity risk), liquidity risk and credit risk. The group seeks to minimise
losses and volatility on the group’s earnings caused by adverse market
movements. Moreover, the group monitors and manages financial risk based
on internal policies and standards set forth by corporate management and
approved by the board of directors. These written policies provide principles
for the overall risk management as well as standards for managing currency
risk, interest rate risk, credit risk, liquidity risk and the use of financial
derivatives and non-derivative financial instruments.
a) Interest rate risk
Interest rate risk is related to the financial risk related to changes in market
interest rates. Interest rate risk management is carried out to secure the
lowest possible interest rate payments over time within acceptable risk limits.
This includes having a portfolio of loans in the group with both floating interest
and fixed interest rates. The group may also use derivatives to manage the
interest rate risk in the group.
| 31.12.2025 |
31.12.2024 |
|||||
INTEREST- |
||||||
BEARING ASSETS |
||||||
AND LIABILITIES |
FLOATING |
FIXED |
TOTAL |
FLOATING |
FIXED |
TOTAL |
Interest-bearing |
||||||
liabilities |
4 724 |
653 |
5 377 |
4 521 |
725 |
5 246 |
Interest-bearing |
||||||
assets |
-1 082 |
0 |
-1 082 |
-1 127 |
0 |
-1 127 |
Net exposure |
3 642 |
653 |
4 295 |
3 394 |
725 |
4 119 |
All amounts presented in the table are notional amounts. Total interest-
bearing liabilities will therefore differ from booked amounts due to bond
discounts/premiums. Floating rate exposure is calculated without accounting
for potential future refinancing.
Interest rate sensitivity analysis
In accordance with IFRS 7 Financial instruments - disclosures, an interest rate
sensitivity analysis is presented showing the effects of changes in market
interest rates on interest costs and interest income, as well as equity where
applicable. The analysis is based on the following assumptions:
• Floating rate debt is exposed to changes in market interest rates, i.e. the
interest costs or interest income associated with such instruments will
fluctuate based on changes in market rates. The impact of changes is
presented in the sensitivity analysis. The analysis assumes that all other
factors are kept constant.
• Changes in market rates on fixed rate debt will only affect the income
statement if they are measured at fair value. Thus, fixed rate instruments
recognised at amortised cost will not represent an interest rate risk as
defined by IFRS 7. Such instruments will therefore not have any impact on
the sensitivity analysis.
•
Results are presented net of tax, using the Norwegian statutory tax rate of
22%.
•
The interest rate sensitivity analysis is based on a parallel shift in the yield
curve for each relevant currency to which Norske Skog is exposed.
CONSOLIDATED FINANCIAL STATEMENTS
Annual report 2025
Norske Skog
139
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I
PROFIT/(LOSS) AFTER TAX |
||
INTEREST RATE |
2025 |
2024 |
50 basis point downward parallel shift in the yield curve |
17 |
16 |
50 basis point upward parallel shift in the yield curve |
-17 |
-16 |
With a 50-basis point upward change in interest rate the annual interest
payments will increase with NOK 17 million (NOK 16 million). The upward
change will have a positive change in the value of derivatives carried at fair
value through profit or loss with NOK 7 million (NOK 9 million).
b) Currency risk
The group has revenues and expenses in various currencies. The major
currencies are NOK, EUR, GBP and USD. Transaction risk arises because the
group has a different currency split on income and expenses. In 2025 Norske
Skog has hedged some of its cash flows in foreign currencies. The result of
the hedging is included in gains/(losses) on foreign currency in the income
statement. The cash flow hedges resulted in a realised gain of NOK 24 million
in 2025 (NOK -3 million). At year end 2025 Norske Skog had hedging
Translation risk - net investment hedge
The group does not have any net investment hedges.
The following foreign exchange sensitivity analysis calculates the sensitivity
of derivatives and non-derivative financial instruments on net profit and
equity, based on a defined appreciation/depreciation of NOK against relevant
currencies, keeping all other variables constant. The analysis is based on
several assumptions, including:
• Norske Skog as a group comprises entities with different functional
currencies. Derivative and non-derivative financial instruments of a
monetary nature, denominated in currencies different from the functional
currency of the entity, create foreign exchange rate exposure on the
consolidated income statement.
•
Financial instruments denominated in the functional currency of the entity
have no currency risk and will therefore not be applicable to this analysis.
Furthermore, the foreign currency exposure of translating financial
accounts of subsidiaries into the group’s presentational currency is not
part of this analysis.
•
Sensitivity on commodity contracts and embedded derivatives is presented
separately under “commodity risk”.
•
Other currency derivatives that are recognised at fair value through profit
and loss will affect the income statement.
• Other non-derivative financial instruments accounted for in the analysis
comprise cash and cash equivalents, trade receivables. trade payables and
borrowings denominated in currencies different from the functional
currency of the entity.
•
Correlation effects between currencies are not taken into account. Figures
are presented net of tax.
NOK GAIN/(LOSS) FROM 10% |
||
APPRECIATION ON FOREIGN |
||
CURRENCY EXCHANGE RATES |
||
CURRENCIES AGAINST TO WHICH THE GROUP HAS |
||
SIGNIFICANT EXPOSURE |
31.12.2025 |
31.12.2024 |
EUR |
19 |
12 |
GBP |
4 |
-70 |
USD |
13 |
-31 |
Other |
-5 |
4 |
Total |
31 |
-85 |
The effect of the sensitivity analysis on the income statement is mainly caused
by foreign exchange forward contract in GBP, USD and EUR for which there is
c) Commodity risk
A part of the commodity demand is secured through long-term contracts
limiting the exposure to changes in commodity prices. Some of the group
purchases contracts are defined as financial instruments, or contain embedded
derivatives, which fall within the scope of IFRS 9. These financial instruments
and embedded derivatives are measured in the balance sheet at fair value with
value changes recognised through profit or loss. The embedded derivatives
can be in physical commodity contracts and may comprise a wide variety of
derivative characteristics.
Changes in fair value of commodity contracts reflect unrealised gains or
losses and are calculated as the difference between market price and contract
price, discounted to present value. Some commodity contracts are bilateral
contracts or embedded derivatives in bilateral contracts, for which there
exists no active market. Therefore, valuation techniques are used with as
much use as possible of available market information. Techniques that reflect
how the market could be expected to price instruments are used in non-
observable markets. The fair value of embedded derivatives in physical
contracts depends on currency fluctuations.
Sensitivity analysis for commodity contracts
When calculating fair value of future and forward contracts, cash flows are
assumed to occur in the middle of the period. Currency effects arise when
contract values nominated in foreign currencies are translated into the
reporting currency.
NET PROFIT |
NET PROFIT |
|||
COMMODITY CONTRACTS |
FAIR VALUE |
AFTER TAX |
AFTER TAX |
|
WITHIN THE SCOPE OF IFRS 9 |
31.12.2025 |
- INCREASE |
- DECREASE |
|
Energy price |
change 10% |
137 |
55 |
-55 |
Currency |
change 10% |
137 |
-3 |
3 |
Price index |
change 2.5% |
137 |
0 |
0 |
Sensitivity analysis for embedded derivatives
Embedded derivatives can be features in physical commodity contracts. The
most common embedded derivatives are currency.
NET PROFIT |
NET PROFIT |
|||
FAIR VALUE |
AFTER TAX |
AFTER TAX |
||
EMBEDDED DERIVATIVES |
31.12.2025 |
- INCREASE |
- DECREASE |
|
Currency |
change 10% |
-94 |
-104 |
104 |
CONSOLIDATED FINANCIAL STATEMENTS
Norske Skog
Annual report 2025
140
I
I
The group is exposed to liquidity risk in a scenario when the group’s cash flow
from operating activities is not sufficient to cover payments of financial
liabilities. To effectively mitigate liquidity risk, Norske Skog’s liquidity risk
management strategy focuses on maintaining sufficient cash, as well as
securing available financing through committed credit facilities. Managing
liquidity risk is centralised on a group level.
To uncover future liquidity risk, the group forecasts both short- and long-term
cash flows. Cash flow forecasts include cash flows from operations,
investments, financing activities and financial instruments. The group had
cash and cash equivalents of NOK 1
082 million on 31 December 2025
(NOK 1
127 million). Restricted bank deposits amounted to NOK 231 million
on 31 December 2025 (NOK 255 million).
Scheduled repayments in Note 29 shows contractual maturities of non-
derivative financial liabilities. All amounts disclosed in the table are
undiscounted cash flows. Furthermore, amounts denominated in foreign
currency are translated to NOK using closing rates on 31 December 2025.
These amounts consist of trade payables and interest payments. Variable rate
interest cash flows are calculated using the forward yield curve. Projected
interest payments are based on the maturity schedule on 31 December 2025
without accounting for forecasted refinancing and/or other changes in the
liability portfolio. All other cash flows are based on the group’s positions held
on 31 December 2025.
SCHEDULED REPAYMENTS OF |
||||
FINANCIAL DEBT AND |
OTHER |
|||
INTEREST AT 31.12.2025 |
INTEREST |
LOANS |
BONDS |
TOTAL |
Not later than one year |
292 |
942 |
0 |
1 234 |
Later than one year and not |
||||
later than five years |
568 |
2 513 |
1 400 |
4 481 |
Later than five years |
18 |
396 |
0 |
415 |
Total |
878 |
3 851 |
1 400 |
6 129 |
Trade payables |
1 527 |
SCHEDULED REPAYMENTS OF |
||||
FINANCIAL DEBT AND |
OTHER |
|||
INTEREST AT 31.12.2024 |
INTEREST |
LOANS |
BONDS |
TOTAL |
Not later than one year |
322 |
749 |
0 |
1 071 |
Later than one year and not |
||||
later than five years |
810 |
2 501 |
1 400 |
4 711 |
Later than five years |
29 |
529 |
0 |
558 |
Total |
1 161 |
3 779 |
1 400 |
6 340 |
Trade payables |
1 282 |
The group makes a credit evaluation of all financial trading counterparties.
Based on the evaluation, a limit on credit exposure is established for each
counterparty. These limits are monitored continuously in relation to unrealised
profit on financial instruments and placements. The maximum credit risk
arising from financial instruments is represented by the carrying amount of
financial assets in the balance sheet.
The group procedures for credit management of trade receivables, and the
authority to approve credit lines to customers of the business units, are
regulated by a policy drafted and maintained by a centralised credit
management function at the head office. The operational responsibility to act
Reporting segments
The activities in the group are separated into three reporting segments which
is in line with how the group is managed internally. Norske Skog’s chief
operating decision maker is corporate management, who distribute resources
and assess performance of the group’s operating segments. Norske Skog has
an integrated strategy to maximise profits for each segment. The optimisation
is carried out through co-ordinated sales and operational planning within each
segment.
Accounting policies applied in the segment reporting
Recognition, measurement and classification are applied consistently in
external and internal reporting.
Performance measurement
The group assesses the performance of the reporting segments based on a
measure of EBITDA. These items exclude the effects of expenditure not
deemed to be part of the regular operating activities of the segment, such as
restructuring expenses, impairments, changes in fair value of certain energy
contracts, embedded derivatives in energy contracts. See alternative
performance measures (APM) for further information related to performance
measurement other than financial measure defined or specific in the IFRS
Accounting standards.
Intercompany transactions
The revenue reported per reporting segment includes both sales to external
parties and sales to other segments. Intra-segment sales are eliminated in the
consolidated financial statements. All sales transactions between reporting
segments are carried out at arm’s length prices as if sold or transferred to
independent third parties.
REPORTABLE SEGMENTS
Norske Skog group is a producer of publication paper and packaging paper.
Publication paper includes newsprint and magazine paper. Newsprint
encompasses standard newsprint and other paper qualities used in
newspapers, inserts, catalogues, etc. These paper qualities, measured in
grammes per square meter, will normally be in the range 40-52 g/m2. Magazine
paper encompasses the paper qualities super calendared (SC) and lightweight
coated (LWC). These paper qualities are used in magazines, periodicals,
catalogues and brochures. From 2023 Norske Skog group is also a producer
of recycled containerboard, mainly the grades testliner 3 and fluting. Testliner
3 and fluting are used by corrugators as outer and inner layers of packaging
material and will normally be in the range of 90-170 g/m2 for testliner 3 and
70-170 g/m2 for fluting.
Publication paper
Publication paper encompasses production and sale of newsprint and
magazine paper. The publication paper machines and the regional sales
organisations are included in the reporting segment.
Packaging paper
Packaging paper was established as a new reporting segment in 2023. The
segment encompasses production and sale of recycled containerboard.
Norske Skog Bruck PM3 was included in the segment from 2023. Norske Skog
Golbey PM1 is included in the packaging paper segment from 2025 and
started production and deliveries in the second quarter.
CONSOLIDATED FINANCIAL STATEMENTS
Annual report 2025
Norske Skog
141
I
I
Other activities
Activities in the group that do not fall into the reporting segments publication
paper or packaging paper are presented under other activities. This includes
corporate functions and sourcing solutions.
Norske Skog Recycling GmbH,
that was previously included in sourcing solutions, is from the fourth quarter
of 2025 merged with Norske Skog Bruck GmbH and included in the packaging
paper segment.
REVENUES AND EXPENSES NOT ALLOCATED TO OPERATING
SEGMENTS
Norske Skog manages non-current debt, taxes and cash positions on a group
basis. Consequently, financial items and tax expenses are presented only for
PUBLICATION |
PACKAGING |
OTHER |
NORSKE SKOG |
||
2025 |
PAPER |
PAPER |
ACTIVITIES |
ELIMINATIONS |
GROUP |
Operating revenue |
8 056 |
1 036 |
827 |
-474 |
9 445 |
Other operating income |
826 |
206 |
4 |
0 |
1 037 |
Total operating income |
8 882 |
1 243 |
832 |
-474 |
10 482 |
Distribution costs |
-886 |
-150 |
0 |
0 |
-1 036 |
Cost of materials |
-5 016 |
-888 |
-705 |
377 |
-6 232 |
Employee benefit expenses |
-1 232 |
-312 |
-75 |
0 |
-1 619 |
Other operating expenses |
-640 |
-201 |
-82 |
97 |
-827 |
EBITDA |
1 107 |
-308 |
-31 |
0 |
769 |
Restructuring expenses |
-5 |
0 |
0 |
0 |
-5 |
Depreciation |
-331 |
-217 |
-9 |
0 |
-557 |
Derivatives and other fair value adjustments |
357 |
0 |
-1 |
0 |
356 |
Operating earnings |
1 129 |
-525 |
-41 |
0 |
563 |
Share of operating revenue from external parties (%) |
100 |
100 |
47 |
100 |
PUBLICATION |
PACKAGING |
OTHER |
NORSKE SKOG |
||
2024 |
PAPER |
PAPER |
ACTIVITIES |
ELIMINATIONS |
GROUP |
Operating revenue |
8 359 |
721 |
802 |
-649 |
9 233 |
Other operating income |
807 |
130 |
4 |
-2 |
939 |
Total operating income |
9 166 |
851 |
806 |
-651 |
10 173 |
Distribution costs |
-904 |
-101 |
0 |
0 |
-1 005 |
Cost of materials |
-5 274 |
-527 |
-671 |
544 |
-5 927 |
Employee benefit expenses |
-1 446 |
-156 |
-101 |
2 |
-1 702 |
Other operating expenses |
-773 |
-61 |
-73 |
104 |
-803 |
EBITDA |
769 |
6 |
-39 |
0 |
736 |
Restructuring expenses |
-12 |
0 |
-4 |
0 |
-16 |
Depreciation |
-354 |
-118 |
-8 |
0 |
-481 |
Impairments |
-121 |
0 |
0 |
0 |
-121 |
Derivatives and other fair value adjustments |
-170 |
0 |
-8 |
0 |
-178 |
Operating earnings |
112 |
-113 |
-59 |
0 |
-60 |
Share of operating revenue from external parties (%) |
100 |
100 |
26 |
0 |
100 |
CONSOLIDATED FINANCIAL STATEMENTS
Norske Skog
Annual report 2025
142
I
I
PROPERTY, PLANT AND EQUIPMENT PER GEOGRAPHICAL REGION
The table below shows property, plant and equipment allocated to Norske
Skog’s country of domicile and other regions in which the group holds assets.
The allocation is based on the location of the production facilities.
31.12.2025 |
31.12.2024 |
|
Norway |
1 154 |
1 184 |
Rest of Europe |
9 095 |
8 539 |
Total |
10 249 |
9 723 |
2025 |
2024 |
|
Publication paper |
8 299 |
8 847 |
Packaging paper |
1 132 |
846 |
Other activities |
822 |
775 |
Discontinued operations |
490 |
1 922 |
Eliminations |
-474 |
-651 |
Total |
10 269 |
11 740 |
NET CASH FLOW FROM OPERATING ACTIVITIES
2025 |
2024 |
|
Publication paper |
836 |
228 |
Packaging paper |
-395 |
75 |
Other activities |
16 |
-76 |
Discontinued operations |
8 |
-28 |
Total cash flow allocated to segments |
466 |
200 |
Net financial items |
-230 |
-216 |
Taxes paid |
-9 |
1 |
Net cash flow from operating activities |
227 |
-15 |
PURCHASES OF PROPERTY, PLANT AND EQUIPMENT AND
INTANGIBLE ASSETS
2025 |
2024 |
|
Publication paper |
197 |
430 |
Packaging paper |
764 |
1 082 |
Other activities |
12 |
13 |
Discontinued operation |
9 |
33 |
Total |
982 |
1 558 |
Inventories include raw materials, work in progress, finished goods and other
production materials.
31.12.2025 |
31.12.2024 |
|
Publication paper |
1 289 |
1 301 |
Packaging paper |
80 |
70 |
Other activities |
2 |
20 |
Total |
1 371 |
1 390 |
31.12.2025 |
31.12.2024 |
|
Publication paper |
317 |
402 |
Packaging paper |
83 |
9 |
Other activities |
81 |
63 |
Eliminations |
0 |
0 |
Total |
482 |
474 |
Provision for bad debt |
-54 |
-52 |
Revenue
Revenue from contracts with customers is recognised when control of the
goods or services are transferred to the customer at an amount that reflects
the consideration to which the group expects to be entitled in exchange for
those goods or services.
The timing of revenue recognition is based on the delivery terms for the
different markets and customers, and where revenue is recognised at a point
in time. It is important to make sure that all performance obligations are
fulfilled, and the customer can benefit on its own. If the customer cannot
obtain control of the good or service, the revenue will not be recognised.
Revenue in the group companies consist almost exclusively of sale of goods.
Contracts with customers are recognised upon satisfaction of a performance
obligation by transferring the promised goods to a customer and measured at
point in time for the sale of products to the customer. Sales of publication
papers, packaging paper and other products are non-interest-bearing
receivables, generally on terms of 20-60 days.
Norske Skog’s terms of delivery are based on Incoterms 2020, which are the
official rules for the interpretation of trade terms issued by the International
Chamber of Commerce. The timing of revenue recognition is largely dependent
on these delivery terms: The sale of publication paper and packaging paper in
Norske Skog is mainly based on delivery terms C and D, with 7% (8%) and 85%
(83%) respectively.
C-terms, where the group arranges and pays for the external transport of the
goods, but the group no longer bears any responsibility for the goods once
they have been handed over to the transporter in accordance with the terms
of the contract. The point of sale is when the goods are handed over to the
transporter contracted by the seller.
D-terms, where the group delivers the goods to the purchaser at the agreed
destination, usually at the purchaser’s premises. The point of sale is when the
goods are delivered to the purchaser. If the customer is invoiced before
delivery of the goods purchased, revenue is only recognised if the customer
has taken over a significant part of the gain and loss potential relating to the
MAJOR CUSTOMERS
No customer represents 10% or more of the operating revenue.
Norske Skog had a total sales volume of newsprint and magazine paper of
1 092 000
tonnes in 2025 (1
115 000),
of which sales to the group’s largest
customer constituted approximately 69
000 (58
000) tonnes. Total sales
volume in 2025 of newsprint and magazine paper to the five largest customers
amounted to approximately 206
000 (207
000) tonnes.
CONSOLIDATED FINANCIAL STATEMENTS
Annual report 2025
Norske Skog
143
I
I
Total sales volume of recycled containerboard was 247
000 tonnes in 2025
(162 000).
Total sales volume in 2025 of recycled containerboard to the five
largest customers amounted to 62
000 tonnes (59
000).
The allocation of operating revenue by market is based on customer location.
2025 |
2024 |
|
Norway |
320 |
440 |
Rest of Europe |
8 551 |
8 209 |
North America |
206 |
217 |
Asia |
273 |
306 |
Africa |
82 |
61 |
South America |
6 |
0 |
Central America |
7 |
0 |
Total |
9 445 |
9 233 |
Other operating income
Government grants
Government grants are recognised as income or as a cost reduction, dependent
on the basis for which the government grant has been awarded. Recognition will
be on a systematic basis over the period they have been granted for, or on a
systematic basis to the costs that they are intended to compensate for.
Government grants in the form of compensation for losses which have already
been incurred, or in the form of direct financial support, which is not directly
related to future costs, are recognised as income in the same period as they
are awarded.
Government grants related to assets are presented in the balance sheet as
deferred income or as a reduction of the cost price of the assets the grant relates
to. The grant is then recognised in the income statement either through future
CO2 allowances
The EU Emissions Trading System (EU ETS) was established in 2005 and is a
cap-and-trade mechanism that limits greenhouse gas emissions from key
sectors by setting a cap on total emissions and allowing companies to buy,
sell, or trade emission allowances. The pulp and paper industry is classified as
being at risk of carbon leakage, meaning it faces significant carbon costs and
international competition that could incentivise relocation to countries with
less stringent climate policies. To address this risk, operators in the pulp and
paper industry are allocated free CO2 allowances based on a carbon intensity
benchmark per tonne paper produced.
Free allowances are used to offset emission liabilities and are accounted for at
nil value upon allocation. Entities with a surplus of allowances – meaning their
verified emissions are lower than their allocated free quotas – can sell the
excess allowances on the carbon market. The expected revenue from these
sales is accrued monthly as a function of the paper production. At the end of
each month, the value of these allowances is measured at prevailing market
prices, ensuring financial statements reflect current carbon market conditions.
If an entity is in a net deficit of allowances, a provision for the required
additional allowances is recorded monthly at market value to reflect the cost
of compliance.
Consumption of CO2 allowances is included in cost of materials
(see Note 9).
Norske Skog received 328
000 CO2 allowances in 2025 (274
000) and sold
approximately 409
000 (451
000). Sold CO2 quotas include also CO2 quotas
from prior year in addition to quotas purchased during the year. EUs ETS
system currently covers the period 2021 to 2025. Norske Skog has received
written notice from the Norwegian Environment Agency stating that the
Norwegian mills Norske Skog Saugbrugs and Norske Skog Skogn will not be
included in the EUs ETS system from 2026 to 2030. Norske Skog has appealed
the decision of the Norwegian Environment Agency to the Ministry of Climate
and Environment. The company has not received a final decision from the
Ministry of Climate and Environment.
CO2 compensation
CO2 compensation is an arrangement provided to industries at risk of carbon
leakage that face higher electricity costs due to the EU carbon pricing
mechanism. Since power producers pass on the cost of EU ETS allowances to
electricity prices, energy-intensive industries receive compensation to prevent
relocation of production to countries with weaker climate policies. This is
included as reduction in energy cost and described in Note 9.
2025 |
2024 |
|
Public subsidies and grants |
16 |
9 |
Gate fee |
144 |
125 |
Gain on sales of non-current assets |
5 |
3 |
Gain from sale of CO2 allowances |
167 |
222 |
Insurance settlement |
560 |
458 |
Other |
145 |
123 |
Total |
1 037 |
939 |
Public subsidies and grants in 2025 relate mainly to conversion projects in
Norske Skog Bruck and Norske Skog Golbey.
Other for 2025 and 2024 consist mainly of income from sale of steam, sludge,
Insurance settlement
On 27 April 2023 Norske Skog Saugbrugs was impacted by a rockslide that
destroyed parts of the building and damaged machinery and equipment related
to PM6. The damage to the building and infrastructure were extensive and PM6
has been stopped from the time of the impact.
Norske Skog Saugbrugs is covered for both property damage and business
interruption as part of its group insurance programme.
Work has been carried out to secure the site from further rockslide and reinstate
the building. The costs to secure rock formations and property damage to
building structures and cost of reinstatement of these was covered by Norske
Skog Saugbrugs and fully reimbursed by the insurers.
On 31 January 2025 Norske Skog Saugbrugs and its insurance company
agreed on a final settlement of all remaining insurance claims related to the
rockslide at the Saugbrugs site. Following the settlement, an aggregate
amount of NOK 560 million has been recognised in other operating income in
2025 (NOK 448 million).
All of the NOK 560 million recognised in 2025 was related to property damage
(NOK 448 million).
NOK 0 million is expensed in other operating expenses (NOK 2 million).
In 2024 an additional NOK 10 million was recognised as part of an insurance
CONSOLIDATED FINANCIAL STATEMENTS
Norske Skog
Annual report 2025
144
I
I
Cost of materials
Cost of material are accounted for as they are consumed as part of the production
CO2 compensation
CO2 compensation is an arrangement provided to industries at risk of carbon
leakage that face higher electricity costs due to the EU carbon pricing
mechanism. Since power producers pass on the cost of EU ETS allowances to
electricity prices, energy-intensive industries receive compensation to prevent
relocation of production to countries with weaker climate policies. CO2
compensation covers a defined period but may be changed at the discretion
of the government as any compensation is decided on country level. Norske
Skog receives recurring CO2 compensation in Norway and France. The
compensation is dependent on energy consumption and average CO2 market
price in the previous year. As the production and earned CO2 compensation is
quite stable throughout the year, this is accrued for monthly in the year before
it is received. CO2 compensation is recognised as a reduction of energy cost
as the element of energy cost it compensates is consumed and incurred.
In 2024 the Norwegian government entered into an agreement with unions and
trade organisations regarding a new framework for the Norwegian CO2
compensation. The amended regulation applies for the period 2024 to 2030. The
agreement includes removing the price floor that previously existed in addition to
implementing at funding cap of NOK 7 billion and a requirement that the companies
eligible to the compensation spend 40 percent of the compensation on climate-
and energy initiatives. Norske Skog’s CO2 compensation is dependent on the
production for all the companies eligible to CO2 compensation. The group
recognises estimated entitled CO2 compensation as earned based on the
approved regulation and expected compensation level in relation to energy
consumption. Application and payment of compensation is to be done the first few
months in the year following the year of consumption of electricity.
CO2 compensation of NOK 620 million (NOK 478 million) is recorded as a
reduction in energy costs on the cost of materials line, as the grant is primarily
intended to compensate for high energy costs. The total compensation
received, and to be received, under the scheme until 2030 is conditional upon
at least 40% of the compensation being used on climate efficiency measures.
The company has submitted and received approval for an action plan, and
expects to comply with the conditions for retaining the compensation based
on commenced and planned energy efficiency projects. Hence, recognition of
the compensation is not deferred.
CO2 allowances
Allocation of free CO2 quotas are based on the annual production. The free
quotas are used to settle liabilities arising from emission. If an entity is net
deficit of allowances (emissions exceed CO2 allowances received) provision
for quotas that need to be purchased is done monthly as the production the
quotas is a function of is quite stable. Each month this is measured at market
value.
Consumption of CO2 allowances is included in energy within cost of
materials. See Note 8 for further information.
COST OF MATERIALS
2025 |
2024 |
|
Fiber |
3 327 |
3 023 |
Chemicals and additives |
968 |
917 |
Energy |
1 302 |
1 489 |
Other production material |
658 |
585 |
Change in inventory |
-23 |
-86 |
Total |
6 232 |
5 927 |
Employee benefit expenses
Bonus arrangements
The group accrues for bonus arrangements when there exists a contractual
obligation, or past practice has created a constructive obligation.
Norske Skog has a long-term incentive programme which falls within the
scope of IFRS 2 Share-based payments. The long-term incentive programme
is a cash-settled share-based programme in which the entity acquires services
by incurring a liability to transfer cash to the employee for those services for
amounts that are based on the price of the shares in the company. The
ultimate cost of a cash-settled share-based transaction is the actual cash paid
to the counterparty, which will be the fair value at settlement date.
The periodic determination of this liability is at each reporting date between
grant and settlement the fair value of the award. The fair value of the award is
determined in accordance with the specific requirements in IFRS 2. During the
vesting period, the liability recognised at each reporting date is the fair value
of the award at that date multiplied by the expired portion of the vesting
period. All changes in the liability are recognised in profit or loss. The fair value
of the liability is determined by applying an option pricing model, considering
the terms and conditions on which the cash-settled transaction was granted,
EMPLOYEE BENEFIT EXPENSES |
NOTE |
2025 |
2024 |
Salaries including holiday pay |
1 212 |
1 282 |
|
Social security contributions |
327 |
332 |
|
Pension and other long term employee |
|||
benefits |
27 |
52 |
63 |
Other employee benefit expenses |
28 |
25 |
|
Total |
1 619 |
1 702 |
NUMBER OF EMPLOYEES (FTE) |
2025 |
2024 |
Europe |
1 632 |
1 748 |
- Corporate functions |
20 |
23 |
Total |
1 652 |
1 771 |
Pursuant to 6-16 (b) in the Public Limited Liability Companies Act, and
associated regulations, Norske Skog publishes a separate management
remuneration report disclosing detailed information on remuneration to
corporate management and directors of the board. The remuneration report
will be published immediately after the annual general meeting on 16 April
2026 and will include detailed information on management remuneration
complementing the numbers presented below.
In accordance with the code of conduct for corporate governance
recommended by the Oslo Stock Exchange, salary, benefits in kind and bonus
for members of corporate management are specified below. In relation to the
long-term incentive programme for corporate management NOK -1 million
was expensed in 2025 (NOK -4 million) and on 31 December 2025 the
corresponding liability was NOK 0.5 million (NOK 1.4 million)
. The long-term
incentive programme is described in the guidelines for determining salary
and other remuneration to leading personnel, which are available on the
Norske Skog Bruck
Photo: Carsten Dybevig
CONSOLIDATED FINANCIAL STATEMENTS
Norske Skog
Annual report 2025
146
I
I
2025 |
Fixed |
Variable |
||||||
(in NOK 1 000) |
||||||||
BENEFITS |
CONTRIBUTION |
RELATIVE |
||||||
CORPORATE MANAGEMENT |
ANNUAL |
SALARY |
IN KIND |
TO PENSION |
TOTAL |
PROPORTION |
||
MEMBER |
BASE SALARY |
EARNED 1) |
ETC. 2) |
STI earned 3) |
LTI EARNED 4 |
SCHEMES |
REMUNERATION |
FIXED/VARIABLE |
Geir Drangsland, |
||||||||
CEO |
5 464 |
5 459 |
212 |
500 |
-1 |
1 075 |
7 245 |
92% / 8% |
Tord Steinset Torvund, |
||||||||
CFO |
2 197 |
2 198 |
175 |
250 |
-373 |
289 |
2 539 |
100% / N/A |
Robert A. Wood, |
||||||||
SVP Commercial |
2 548 |
2 569 |
23 |
250 |
-97 |
142 |
2 888 |
94% / 6% |
Einar Blaauw, |
||||||||
SVP General Counsel |
2 554 |
2 555 |
197 |
250 |
-77 |
466 |
3 391 |
94% / 6% |
Even Lund, |
||||||||
SVP Corporate Finance |
2 197 |
2 198 |
155 |
250 |
-373 |
287 |
2 517 |
100% / N/A |
2024 |
Fixed |
Variable |
||||||
(in NOK 1 000) |
||||||||
BENEFITS |
CONTRIBUTION |
RELATIVE |
||||||
CORPORATE MANAGEMENT |
ANNUAL |
SALARY |
IN KIND |
TO PENSION |
TOTAL |
PROPORTION |
||
MEMBER |
BASE SALARY |
EARNED 1) |
ETC. 2) |
STI earned 3) |
LTI EARNED 4 |
SCHEMES |
REMUNERATION |
FIXED/VARIABLE |
Geir Drangsland , CEO |
5 234 |
5 074 |
191 |
- |
206 |
888 |
6 359 |
96% / 4% |
Tord Steinset Torvund , |
||||||||
CFO since 1 March |
2 104 |
1 710 |
137 |
- |
-1 194 |
224 |
876 |
100% / N/A |
Robert A. Wood , 5) |
||||||||
SVP Commercial |
2 440 |
2 495 |
31 |
- |
-424 |
184 |
2 285 |
100% / N/A |
Einar Blaauw , |
||||||||
SVP General Counsel in |
||||||||
CM since 1 January |
2 445 |
2 421 |
179 |
- |
-337 |
440 |
2 704 |
100% / N/A |
Even Lund , VP Corporate |
||||||||
Finance in CM since 1 January |
1 894 |
1 875 |
144 |
- |
-1 194 |
225 |
1 050 |
100% / N/A |
Rune Sollie , CFO until 1 March |
2 325 |
1 331 |
85 |
-605 |
159 |
970 |
100% / N/A |
|
Amund Saxrud , |
||||||||
COO until 20 March |
2 325 |
2 957 |
143 |
- |
-605 |
345 |
2 840 |
100% / N/A |
1) Salary earned includes fixed salary and accrued holiday pay
2)
Benefits in kind includes car allowance, insurance, free telephone etc.
3) Based on performance in the financial year
4) Illustrates the expensed change in accrual of the corresponding liability and is not directly linked to actual payments. For 2025 and 2024 LTI has been negative for most of the corporate management members
5) Robert A. Wood was employed by Norske Skog ASA from 1 April 2024. Prior to this he was employed by Norske Skog UK Ltd. He has during his employment in Norske Skog UK Ltd. worked fully for Norske Skog ASA as SVP
CONSOLIDATED FINANCIAL STATEMENTS
Annual report 2025
Norske Skog
147
I
I
Other operating expenses
NOTE |
2025 |
2024 |
|
Maintenance materials and services |
8 |
448 |
429 |
Marketing expenses |
20 |
21 |
|
Variable lease, short term and low value lease expenses |
19 |
27 |
21 |
Administration, insurance, travel expenses etc. |
105 |
105 |
|
Losses from divestments of property, plant and equipment |
3 |
0 |
|
Other expenses |
223 |
227 |
|
Total |
827 |
803 |
|
Specification of losses on trade receivable included in other expenses |
|||
Receivables written off during the period |
-3 |
2 |
|
Change in provision for bad debt |
2 |
0 |
|
Total |
-2 |
2 |
PARENT COMPANY |
SUBSIDIARIES |
|||
(in NOK 1 000, excluding VAT) |
GROUP AUDITORS |
GROUP AUDITORS |
OTHER AUDITORS |
TOTAL |
Audit fee |
2 328 |
3 766 |
373 |
6 467 |
Audit-related assistance 1) |
3 062 |
20 |
0 |
3 081 |
Tax assistance |
0 |
0 |
0 |
0 |
Other fees |
0 |
86 |
0 |
86 |
Total |
5 390 |
3 872 |
373 |
9 634 |
Derivatives and other fair value adjustment
The group has derivatives in the form of currency forward contracts, used to
hedge currency risk, embedded derivatives related to currency in certain
energy contracts that are separated from its host contract and certain energy
contracts that are accounted for at fair value.
Derivatives are initially recognised at fair value on the date a derivative
contract is entered into and are subsequently remeasured at their fair value.
Changes in the fair value of any of these derivative instruments are recognised
in the income statement. The group has selected to not designate any financial
instruments for hedge accounting.
The fair value of currency forward contracts is based on mark-to-market reports
(level 2) which are considered to be an approximation of fair value. For the
embedded derivatives and contracts valued at fair value there is no active
market, and the group applies valuation techniques to establish the fair value
(level 3). These may include the use of recent arm’s length transactions,
reference to other instruments which are substantially the same, and discounted
cash flow analyses defined to reflect the issuer’s specific circumstances. Fair
value includes the impact of credit risk and the adjustment for credit risk is
dependent on whether the derivative is in the money (asset) or out of the
money (liability). Credit value adjustment is applied to assets positions based
on credit risk associated with the counterparty. Debit value adjustment is
applied to liability positions, based on the group’s own credit risk.
2025 |
2024 |
|
Changes in value – commodity contracts 1) |
326 |
-124 |
Changes in value – embedded derivatives |
32 |
-47 |
Realised gains/(losses) on contracts |
-2 |
-7 |
Total |
356 |
-178 |
1) Long-term financial contracts and commodity contracts that do not meet the requirement in IFRS 9 related
to own use are measured at fair value.
Norske Skog’s portfolio of commodity contracts consists mainly of physical
energy contracts. The fair value of commodity contracts is especially sensitive
to future changes in energy prices. A sensitivity analysis of the impact on
profit after tax of fluctuations in energy prices, currency and price indices is
given in Note 5. The valuation techniques used are described in Note 21.
The gain in the fair value of commodity contracts in 2025 is mainly a reversal
of the negative fair value of the 2025 contracts volume. The loss in fair value
of commodity contracts in 2024 is mainly due to the forecasted forward
energy prices in Norway decreasing in 2024. Contracts measured at fair value
expire in 2026.
The gain in embedded derivatives in 2025 was mainly due to forward prices of
euro depreciating against NOK during 2025, whereas during 2024 the forward
price appreciated.
Realised gain/(losses) on contracts consist of realised losses on financial
CONSOLIDATED FINANCIAL STATEMENTS
Norske Skog
Annual report 2025
148
I
I
Associated companies and joint ventures
Associates are all entities over which the group exercises significant influence
but not control, generally accompanying a shareholding of 20% to 50% of the
voting rights. Investments in associates are accounted for using the equity
method of accounting.
Net profit from associated companies is included in 2025 with NOK 0 million
(NOK -65 million).
The carrying value of associated companies and joint ventures is NOK 14 million
Circa Group AS
Norske Skog holds a 26% share of Circa Group AS that has been suspended
from trading on Euronext Growth following its filed petition for bankruptcy on
7 October 2024. Norske Skog impaired the shares in 2024 to reflect the
Financial items
Interest income and expenses are recognised in the income statement as they
are accrued, based on the effective interest method. This is the interest rate
that gives a net present value of the cash flows from the loan that is equal to
Currency contracts
Forward currency contracts are recognised in the balance sheet and measured
at fair value at each balance sheet date with the resulting gain or loss
recognised in gain/(losses) on foreign currency.
FINANCIAL ITEMS |
2025 |
2024 |
Financial income |
||
Interest income |
47 |
84 |
Total |
47 |
84 |
Financial expenses |
||
Interest expense |
-249 |
-212 |
Other financial expenses |
-85 |
-139 |
Total |
-333 |
-351 |
Gains/(losses) on foreign currency |
77 |
-175 |
Financial items |
-209 |
-441 |
Other financial expenses mainly consist of commitments fee and other
financing expenses. See Note 29. In 2024 other financial expenses include
NOK 43 million in transaction cost regarding refinancing of the 150 million
Income tax
The group’s income tax expense includes current tax based on taxable profit
for each jurisdiction. This is adjusted by;
• changes in deferred tax assets and liabilities attributable to temporary
differences arising between the carrying amount of assets and liabilities in
the consolidated financial statements and their tax bases and;
•
changes to unused tax losses that are expected to be utilised.
Tax is recognised in the income statement, except to the extent that it relates
to items recognised in other comprehensive income or directly in equity. In
this case, the tax is also recognised in other comprehensive income or directly
in equity, respectively. Deferred tax assets are offset against deferred tax
liabilities only when the deferred tax assets and liabilities relate to income
taxes levied by the same tax authority and there is a legally enforceable right
to set off current tax assets against current deferred tax liabilities.
The tax charge is calculated based on the tax laws enacted or substantively
enacted at the balance sheet date in the countries where the company’s
subsidiaries and associates operate and generate taxable income. The groups
operations are located in countries with ordinary tax regimes and there are no
Pillar Two
The Pillar Two model rules (Global Anti-Base Erosion rules) (“the rules”)
introduces a global minimum corporate tax of 15%. The rules will be applicable
in all jursidictions of operations. The rules will partially come into effect from
2024, with the first filing i 2026.
For the financial year beginning 1 January 2024 Norske Skog is subject to the
rules in the jurisdictions where Norske Skog’s has operations. The group has
assessed the potential impact on income taxes of rules in relation to “top up tax”.
The assessment is based on tax reporting and country-by-country reporting
to local tax authorities and the financial statement of the entities applied to
the rules. The assessment has concluded that the effective tax rate of the
entities is above the threshold of 15% or within safe harbour rules. No Pillar
Two income taxes have been expensed in 2024 or 2025.
Under IFRS there is a temporary exception to the requirements of IAS 12.
Norske Skog has applied this exemption to not recognise or disclose
information about deferred tax asset and liabilities related to Base Erosion and
Profit Shifting (BEPS) Pillar Two rules.
CONSOLIDATED FINANCIAL STATEMENTS
Annual report 2025
Norske Skog
149
I
I
TAX EXPENSE |
2025 |
2024 |
Current tax expense |
-11 |
-4 |
Change in deferred tax |
98 |
-91 |
Total |
88 |
-94 |
RECONCILIATION OF THE GROUP TAX EXPENSE |
2025 |
2024 |
Profit/(loss) before income taxes |
354 |
-566 |
Computed tax at nominal tax group rate of 22% |
-78 |
125 |
Differences due to different tax rates |
13 |
3 |
Non taxable income/non deductible expenses |
-12 |
-3 |
Adjustment previous years |
7 |
0 |
Other items |
-1 |
-8 |
Change in deferred tax asset not recognised |
157 |
-211 |
Total tax (expense)/income |
88 |
-94 |
Effective tax rate |
-25% |
-17% |
CURRENT TAX LIABILITY |
31.12.2025 |
31.12.2024 |
Norway |
0 |
0 |
Rest of Europe |
-11 |
-11 |
Total |
-11 |
-11 |
DEFERRED TAX - MOVEMENTS |
2025 |
2024 |
Net deferred tax asset/(liability) 1 January |
-96 |
4 |
Change in deferred tax in the income statement |
98 |
-91 |
Tax on other comprehensive income |
-4 |
1 |
Currency translation differences |
0 |
-10 |
Net deferred tax asset/(liability) 31 December |
-1 |
-96 |
DEFERRED TAX ASSET AND DEFERRED TAX LIABILITY |
31.12.2025 |
31.12.2024 |
Norway |
134 |
111 |
Rest of Europe |
0 |
0 |
Deferred tax assets |
134 |
111 |
Norway |
-44 |
0 |
Rest of Europe |
-91 |
-207 |
Deferred tax liability |
-135 |
-207 |
Net deferred tax assets/(liability) |
-1 |
-96 |
DEFERRED TAX DETAILS |
31.12.2025 |
31.12.2024 |
Fixed assets |
-124 |
-74 |
Pension and other employee obligations |
7 |
10 |
Other non-current items |
54 |
39 |
Currency translation differences and financial instruments |
-12 |
67 |
Current items |
-4 |
-15 |
Financial instruments |
1 |
16 |
Interest carry forward (Interest limitation rules) |
74 |
70 |
Tax losses to carry forward |
472 |
415 |
Tax losses and other deferred tax assets not recognised |
-471 |
-629 |
Tax credits |
1 |
5 |
Net deferred tax assets/(liability) |
-1 |
-96 |
31.12.2025 BY REGION
NORWAY |
REST OF EUROPE |
TOTAL |
|
Tax losses to carry forward |
460 |
1 571 |
2 031 |
Temporary differences |
1 057 |
-391 |
666 |
Tax losses and temporary differences not recognised |
-908 |
-1 180 |
-2 088 |
Total tax losses and tax credits to carry forward (recognised) |
609 |
0 |
609 |
Deferred tax asset |
134 |
0 |
134 |
Tax rate |
22% |
23-32% |
LOSSES TO CARRY FORWARD AND TEMPORARY DIFFERENCES 31.12.2024 BY REGION
NORWAY |
REST OF EUROPE |
TOTAL |
|
Tax losses to carry forward |
869 |
967 |
1 836 |
Temporary differences |
1 492 |
-10 |
1 483 |
Tax losses and temporary differences not recognised |
-1 855 |
-957 |
-2 812 |
Total tax losses and tax credits to carry forward (recognised) |
505 |
0 |
505 |
Deferred tax asset |
111 |
0 |
111 |
Tax rate |
22% |
23-32% |
Norske Skog has not recognised any deferred tax asset arising from the tax
Earnings and dividend per share
NOTE |
2025 |
2024 |
|
Profit/(loss) from continuing operations |
442 |
-661 |
|
Profit/(loss) from discontinued operations |
26 |
-37 |
-321 |
Profit/(loss) attributable to owners of the parent |
404 |
-982 |
|
Weighted average number of shares in million |
84.8 |
84.8 |
|
Basic earnings per share (NOK) |
|||
From continuing operations |
5.21 |
-7.79 |
|
From discontinued operations |
26 |
-0.44 |
-3.78 |
Total basic earnings per share |
4.76 |
-11.57 |
|
Diluted earnings/(loss) per share (NOK) |
|||
From continuing operations |
5.21 |
-7.79 |
|
From discontinued operations |
26 |
-0.44 |
-3.78 |
Total diluted earnings per share |
4.76 |
-11.57 |
dividend for the financial year 2025. No dividend was paid in 2025 for the
CONSOLIDATED FINANCIAL STATEMENTS
Annual report 2025
Norske Skog
151
I
I
CONSOLIDATED FINANCIAL STATEMENTS
Norske Skog
Annual report 2025
152
I
I
Intangible assets
Patents and licenses
Patents and licenses have a finite useful life and are recognised at historical
cost less accumulated amortisation. Amortisation is calculated using the
straight-line method to allocate the cost of patents and licences over their
estimated useful lives.
Computer software
Acquired computer software licences are capitalised on the basis of the costs
incurred to acquire the specific software and bring it into use and amortised
over their estimated useful lives. Computer software development costs
recognised as assets are amortised over their estimated useful lives. Costs
associated with maintaining computer software are recognised as an expense
as they are incurred.
Norske Skog has no cash generating units (CGUs) with allocated goodwill or
assets with indefinite useful life that need to be tested for impairment annually,
OTHER INTANGIBLE |
LICENCES AND |
||
INTANGIBLE ASSETS |
ASSETS |
PATENTS |
TOTAL |
Acquisition cost 1 January 2024 |
54 |
97 |
151 |
Additions |
1 |
2 |
3 |
Reclassified to assets held for sale |
-53 |
0 |
-53 |
Reclassified from plant under construction |
0 |
2 |
2 |
Currency translation differences |
1 |
3 |
4 |
Acquisition cost 31 December 2024 |
4 |
104 |
107 |
Accumulated depreciation and impairments 1 January 2024 |
50 |
89 |
139 |
Depreciation |
1 |
4 |
5 |
Reclassified to assets held for sale |
-52 |
0 |
-52 |
Currency translation difference |
1 |
3 |
4 |
Accumulated depreciation and impairments 31 December 2024 |
0 |
96 |
97 |
Carrying value 31 December 2024 |
3 |
8 |
11 |
Acquisition cost 1 January 2025 |
4 |
104 |
107 |
Additions |
0 |
12 |
12 |
Currency translation differences |
-1 |
1 |
0 |
Acquisition cost 31 December 2025 |
3 |
117 |
120 |
Accumulated depreciation and impairments 1 January 2025 |
0 |
96 |
97 |
Depreciation |
0 |
6 |
6 |
Accumulated depreciation and impairments 31 December 2025 |
0 |
103 |
103 |
Carrying value 31 December 2025 |
3 |
14 |
17 |
Other intangible assets, and licences and patents are depreciated over a period
CONSOLIDATED FINANCIAL STATEMENTS
Annual report 2025
Norske Skog
153
I
I
Property, plant and equipment
Property, plant and equipment (PPE) is presented at historical cost less
subsequent depreciation, write downs and impairments. Historical cost
includes expenditure directly attributable to the acquisition of the items. The
residual value of production equipment is defined as the realisable value after
deduction of the estimated cost of dismantling and removal of the asset. If the
estimated cost exceeds the estimated value, the net liability is added to the
cost of the related asset, and a provision is recognised as a liability in the
balance sheet.
Subsequent costs are included in the asset’s carrying amount or recognised as
a separate asset, as appropriate, only when it is probable that future economic
benefits associated with the item will flow to the group and the cost of the item
can be measured reliably. The carrying amount of the replaced part is
derecognised. All other repair and maintenance costs are charged to the
income statement during the financial period in which they are incurred.
Depreciation on other assets is calculated using the straight-line method to
allocate their cost or revalued amounts to their residual values over their
estimated useful lives. Land is not depreciated.
The residual value and useful life of property, plant and equipment are reviewed
and adjusted if required.
Gains and losses on disposals are determined by comparing the proceeds with
the carrying amount and is included in the income statement line other
Review of impairment indicators are performed regularly, and if impairment
indicators are identified an impairment test of property, plant and equipment is
performed. Indicators of impairment will typically be changes in market
conditions and changes in the competitive situation. For the purpose of
assessing impairment, assets are grouped at the lowest level for which cash
flows are separately identifiable cash generating units (CGU).
An impairment loss is recognised for the amount by which the asset’s carrying
amount exceeds its recoverable amount. The recoverable amount is the higher
of an asset’s fair value less costs to sell and its value in use.
There is judgement required to determine CGU for impairment testing. For
property, plant and equipment the CGU can be a single machine or a combination
of machines on the facts and circumstances.
At the end of 2025 the market balance for publication paper were slightly
better compared to the last two years as a result of capacity closures across all
grades. However, there is still overcapacity in the publication paper markets
resulting form the structural demand decline. The containerboard market is
also experiencing some overcapacity as new entrants is expected to outpace
Assumptions applied when calculating the recoverable amount
Intangible non-current assets and property, plant and equipment (PPE) are
written down to their recoverable amount when this is lower than the carrying
value of the asset. The recoverable amount of an asset or CGU is the higher of
its fair value less costs to sell and its value in use. Value in use is the present
value of future cash flows expected to arise from an asset or cash-generating
unit. Norske Skog applies the value in use approach when calculating
recoverable amount for its CGUs. Norske Skog has identified the following
CGUs: Skogn newsprint (Norske Skog Skogn), Golbey newsprint (Norske Skog
Golbey PM2), Saugbrugs super calendared (Norske Skog Saugbrugs), Bruck
lightweight coated (Norske Skog Bruck PM4), Bruck containerboard (Norske
Skog Bruck PM3) and Golbey containerboard (Norske Skog Golbey PM1).
These represent the six cash generating units that the group is focusing on in
its follow-up operationally and commercially as communication with customers,
suppliers, employees.
The production machines have a long technical life, while useful lives are linked
to industry cost curves and the size of the market. The estimated remaining
useful life of the individual paper machines forms the basis for determining the
length of the cash flow period used in the value in use calculation. Estimated
useful life for the individual publication paper machines in the group varies
from 1 to 8 years for publication paper machines and 27 to 30 years for
packaging paper machines. Sales volumes are reduced in accordance with the
estimated end of useful lives of the different paper machines in the group.
Norske Skog models the cash flows throughout the useful life of the paper
machines. The timing of capacity closures is based on an assessment of the
position on Fastmarkets RISI cost curve and market demand projections for
the produced grade. Fastmarkets RISI is the leading global source for forest
products information and data (www.fastmarkets.com).
Nominal cash flow is estimated in the functional currency in which it will be
generated. The value is calculated by discounting based on a required rate of
return on capital that is relevant for the cash-generating unit. The required rate
of return, or weighted average cost of capital (WACC), is based on the interest
rate on ten-year government bonds in the currency of the cash flow estimate,
an industry debt yield premium, industry beta and an equity risk premium. A
country-specific risk premium relevant to the cash-generating unit is also
included in the required rate of return on capital.
The key drivers of profitability in publication paper and packaging paper and
thus asset values for the group are product prices relative to production costs
i.e. EBITDA margin. EBITDA levels represents the operating profit (loss) before
depreciation and amortisation. The starting point for any impairment test is the
financial budget for 2026 approved by the board of directors. The key
assumptions used in reaching the forecast figures are sales prices, volumes
and operating costs. Contracted prices/costs are reflected when applicable in
the budget.
The are no observable market prices for the group’s products, but there are
external sources such as Fastmarkets RISI and PPPC for which estimate prices
for publication paper and packaging paper, and these are used as a reference.
For operating cost related to raw materials and energy contract prices are used
when they cover longer periods, or a best estimate of cost based on historical
experience and any expected changes. Operating costs are based on budgeted
levels and adjusted for any approved efficiency initiatives.
The calculation of value in use takes into consideration any future changes in
both the CO2 quotas and the income from CO2 compensation going forward in
line with the relevant regulatory framework. Other than that no climate
legislation has currently been approved that impacts the group. There are
however expectations that new climate related legislation will be passed in the
future that may increase costs or reduce income and thereby impacting on
profitability is costs are not able to be passed on to customer or fully or partially
compensated by incentive schemes.
CONSOLIDATED FINANCIAL STATEMENTS
Norske Skog
Annual report 2025
154
I
I
Expected useful life
In connection with the year-end closing process for 2025, Norske Skog
performed a review of the expected remaining useful lives of property, plant
and equipment. The useful life of most of the machines were consistent with
last year assumptions.
Sensitivity to estimates of recoverable amount
The key uncertainty in the cash flows and profitability relates to future market
prices for Norske Skog’s products and input factors in the production and
prices and cost relative to each other. The estimation of recoverable amount is
based on assumptions regarding the future development of several factors.
These include price development for finished goods, sales volumes, currency
rates and interest rates. In relation to the assumptions made in a calculation of
the present value of future cash flows, recoverable amount is most sensitive to
changes in prices of finished goods, but also sales volumes and the discount
rate used but to a lesser extent.
Property, plant and equipment allocated to cash-generating units
The table below shows machinery and equipment, and land and buildings
allocated to Norske Skog’s cash-generating units as of 31 December 2025.
MACHINERY AND |
LAND AND |
|
EQUIPMENT |
BUILDINGS |
|
Skogn newsprint |
164 |
210 |
Golbey newsprint |
773 |
188 |
Saugbrugs super calendared |
302 |
329 |
Bruck lightweight coated |
85 |
62 |
Bruck containerboard |
1 840 |
572 |
Golbey containerboard |
4 837 |
538 |
Carrying value 31 December 2025 |
8 001 |
1 898 |
Impairment test
Norske Skog has identified impairment indicators related to the containerboard
and super calendared cash generating units. The impairment test found a value
in use higher than the book value of the relevant CGU’s and thus no impairment
MACHINERY |
FIXTURES |
||||||
BIOLOGICAL |
AND |
LAND AND |
AND |
PLANT UNDER |
RIGHT-OF- |
||
PROPERTY, PLANT AND EQUIPMENT |
ASSETS |
EQUIPMENT |
BUILDINGS |
FITTINGS |
CONSTRUCTION |
USE ASSETS |
TOTAL |
Acquisition cost 1 January 2024 |
2 |
25 831 |
7 040 |
568 |
4 085 |
230 |
37 755 |
Additions |
0 |
39 |
106 |
0 |
1 436 |
107 |
1 688 |
Disposals |
0 |
-2 |
0 |
0 |
0 |
-94 |
-96 |
Reclassified to assets held for sale |
-2 |
-4 802 |
-538 |
-21 |
-42 |
-63 |
-5 467 |
Reclassified from plant under construction |
0 |
303 |
149 |
3 |
-456 |
0 |
-2 |
Currency translation differences |
0 |
639 |
185 |
23 |
187 |
8 |
1 042 |
Acquisition cost 31 December 2024 |
0 |
22 008 |
6 942 |
574 |
5 210 |
188 |
34 921 |
Accumulated depreciation and impairments |
|||||||
1 January 2024 |
0 |
22 510 |
5 936 |
521 |
75 |
146 |
29 188 |
Depreciation |
0 |
361 |
92 |
14 |
0 |
45 |
513 |
Impairment |
2 |
205 |
28 |
0 |
37 |
25 |
297 |
Disposals |
0 |
0 |
0 |
0 |
0 |
-92 |
-92 |
Reclassified to assets held for sale |
-2 |
-4 772 |
-514 |
-21 |
-37 |
-30 |
-5 376 |
Currency translation difference |
0 |
500 |
141 |
21 |
0 |
6 |
668 |
Accumulated depreciation and impairments |
|||||||
31 December 2024 |
0 |
18 805 |
5 683 |
536 |
75 |
100 |
25 198 |
Carrying value 31 December 2024 |
0 |
3 203 |
1 259 |
38 |
5 135 |
88 |
9 723 |
Acquisition cost 1 January 2025 |
0 |
22 008 |
6 942 |
574 |
5 210 |
188 |
34 921 |
Additions |
0 |
20 |
2 |
2 |
926 |
83 |
1 033 |
Disposals |
0 |
-3 |
-7 |
0 |
0 |
-21 |
-30 |
Reclassified to assets held for sale |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
Reclassified from plant under construction |
0 |
5 200 |
737 |
9 |
-5 946 |
0 |
0 |
Currency translation differences |
0 |
51 |
15 |
2 |
27 |
-1 |
94 |
Acquisition cost 31 December 2025 |
0 |
27 276 |
7 689 |
587 |
217 |
249 |
36 018 |
Accumulated depreciation and impairments |
|||||||
1 January 2025 |
0 |
18 805 |
5 683 |
536 |
75 |
100 |
25 198 |
Depreciation |
0 |
414 |
95 |
12 |
0 |
30 |
551 |
Impairment |
0 |
30 |
0 |
0 |
-30 |
0 |
0 |
Disposals |
0 |
-2 |
-5 |
0 |
0 |
-21 |
-28 |
Reclassified to assets held for sale |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
Currency translation difference |
0 |
28 |
18 |
3 |
0 |
-1 |
47 |
Accumulated depreciation and impairments |
|||||||
31 December 2025 |
0 |
19 274 |
5 791 |
550 |
45 |
108 |
25 768 |
Carrying value 31 December 2025 |
0 |
8 001 |
1 898 |
36 |
172 |
141 |
10 249 |
CONSOLIDATED FINANCIAL STATEMENTS
Annual report 2025
Norske Skog
155
I
I
SPECIFICATION OF DEPRECIATION AND IMPAIRMENTS |
NOTE |
2025 |
2024 |
Property, plant and equipment |
551 |
513 |
|
Intangible assets |
6 |
5 |
|
Depreciation from discontinued operations |
26 |
0 |
-37 |
Depreciation from continuing operation |
557 |
481 |
|
Property, plant and equipment |
0 |
297 |
|
Impairments from discontinued operations |
26 |
0 |
-176 |
Impairments from continuing operation |
0 |
121 |
Land and buildings comprise mainly mills, machinery and office premises.
Buildings and other property are depreciated over a period from ten to 40 years.
Fixtures and fittings are depreciated over a period from three to ten years. Land
Right-of-use assets is further described in Note 19.
property, plant, equipment and intangible assets in the consolidated statement
of cash flows is due to leases, capitalised borrowing costs and accruals for
payments. Norske Skog has capitalised borrowing costs of NOK 74 million in
Disposals in 2025 and 2024 were primarily related to scrapping of fully
depreciated assets that no longer have any technical values.
At year end 2025 the group has contractual commitments for acquisition of
property, plant and equipment of NOK
230 million (NOK 530 million) that relate
to future periods. In 2025 total payments related to acquisition of property, plant
Leases
Norske Skog recognises a liability to make lease payments and an asset
representing the right to use the underlying asset during the lease term (“right-
of-use asset”). Exceptions for short term leases and low value leases have been
adapted by the group. At initial recognition the lease assets is measured at an
amount equal to the lease liability. Norske Skog separately recognises the
interest expense on the lease liability and the depreciation expense on the
The group’s leased assets are categorised and presented in the table below:
MACHINERY |
||||
AND |
LAND AND |
FIXTURES AND |
||
LEASES |
EQUIPMENT |
BUILDINGS |
FITTINGS |
TOTAL |
Carrying value 1 January 2024 |
43 |
34 |
6 |
84 |
Additions |
101 |
6 |
0 |
107 |
Disposals |
-2 |
0 |
0 |
-2 |
Reclassified to assets held for sale |
-32 |
0 |
0 |
-33 |
Depreciations |
-34 |
-10 |
-1 |
-45 |
Impairments |
-25 |
0 |
0 |
-25 |
Currency translation differences |
1 |
0 |
0 |
2 |
Carrying value 31 December 2024 |
52 |
30 |
5 |
88 |
Additions |
49 |
34 |
1 |
83 |
Depreciations |
-16 |
-12 |
-1 |
-30 |
Carrying value 31 December 2025 |
85 |
52 |
4 |
141 |
LEASE PAYMENTS MATURITY ANALYSIS |
NOTE |
31.12.2025 |
31.12.2024 |
Not later than one year |
38 |
28 |
|
Later than one year and not later than five years |
86 |
55 |
|
Later than five years |
39 |
22 |
|
Total |
163 |
105 |
|
Future finance charges |
17 |
13 |
|
Present value of liabilities |
29 |
146 |
92 |
Interest expense on lease liabilities amounts to NOK 6 million in 2025 (NOK 6 million).
CASH PAYMENT MADE FROM LEASES |
2025 |
2024 |
Principal payments on recognised lease liabilities |
30 |
32 |
Interest payments on recognised lease liabilities |
6 |
6 |
Payments on leases expensed in the period |
27 |
21 |
Principal, interest and leases expense payments from discontinued operations |
4 |
18 |
Total |
67 |
76 |
The group has decided not to recognise a lease liability for short term leases
or for leases of low value assets. Payments made under such leases are
included in operating expenses. Certain variable lease payments are not
permitted to be recognised as leases liabilities and are expensed as incurred.
VARIABLE LEASE, SHORT TERM AND LOW VALUE LEASE EXPENSES |
NOTE |
2025 |
2024 |
Expense relating to variable lease payments not included in the measurement of lease liabilities |
8 |
5 |
|
Short term leases exemption |
1 |
1 |
|
Low-value leases exemption |
18 |
14 |
|
Total |
11 |
27 |
21 |
CONSOLIDATED FINANCIAL STATEMENTS
Norske Skog
Annual report 2025
156
I
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CONSOLIDATED FINANCIAL STATEMENTS
Annual report 2025
Norske Skog
157
I
I
Shares
SHARES IN SUBSIDIARIES OWNED BY
SHARE CAPITAL |
||||
THE PARENT COMPANY |
CONSOLIDATED COMPANIES |
CURRENCY |
(IN 1 000) |
OWNERSHIP% |
Norske Skog Bruck GmbH, Bruck, Austria |
EUR |
67 000 |
100% |
|
Norske Skog Golbey SAS, Golbey, France |
EUR |
62 365 |
100% |
|
GV Bois SAS, Golbey, France |
EUR |
100 |
90% |
|
Green Valley Energy SASU, France |
EUR |
2 301 |
64% |
|
Norske Skog Skogn AS, Levanger, Norway |
NOK |
115 230 |
100% |
|
Norske Skog Skogn Eiendom AS, Levanger, Norway |
NOK |
100 |
100% |
|
Norske Skog Saugbrugs AS, Halden, Norway |
NOK |
115 230 |
100% |
|
Saugbrugs Bioenergi AS, Halden, Norway |
NOK |
3 000 |
100% |
|
Nornews AS, Oslo, Norway |
NOK |
300 |
100% |
|
Norske Skog Deutschland GmbH, Augsburg, Germany |
EUR |
520 |
100% |
|
Norske Skog France SARL, Paris, France |
EUR |
135 |
100% |
|
Norske Skog (Österreich) GmbH, Graz, Austria |
EUR |
35 |
100% |
|
Norske Skog (UK) Ltd., London, United Kingdom |
GBP |
100 |
100% |
|
Cebina AS, Oslo, Norway |
NOK |
30 |
100% |
|
Cebico AS, Oslo, Norway |
NOK |
30 |
100% |
SHARE CAPITAL |
CARRYING |
|||
SHARES IN ASSOCIATED COMPANIES AND JOINT VENTURES |
CURRENCY |
(in 1 000) |
OWNERSHIP% |
VALUE (NOK) |
Owned by consolidated companies |
||||
Porsnes Utvikling AS, Halden, Norway |
NOK |
300 |
50% |
7 |
Green Valley Energie, France |
EUR |
300 |
10% |
4 |
NorFibre Logistics SAS, France |
EUR |
500 |
20% |
1 |
SEM, France |
EUR |
879 |
10% |
1 |
Other |
1 |
|||
Total shares in associated companies and joint ventures |
14 |
SHARE CAPITAL |
CARRYING |
||||
OTHER SHARES |
NOTE |
CURRENCY |
(in 1 000) |
OWNERSHIP% |
VALUE (NOK) |
Owned by the parent company |
|||||
Ocean GeoLoop AS, Skogn, Norway |
NOK |
527 |
2% |
2 |
|
3K6 Skoginvest AS, Trondheim, Norway |
NOK |
165 |
2% |
2 |
|
Owned by consolidated companies |
|||||
Exeltium SAS, Paris, France |
EUR |
12 358 |
5% |
99 |
|
Other |
1 |
||||
Total other shares |
23 |
104 |
CONSOLIDATED FINANCIAL STATEMENTS
Norske Skog
Annual report 2025
158
I
I
Derivatives
Norske Skog’s portfolio of commodity contracts consists mainly of physical
energy contracts. The commodity contracts and embedded derivatives
classified as financial instruments within the scope of IFRS 9 contracts are
related to energy contracts in Norway. Fair value of commodity contracts is
sensitive to estimates of future energy prices. For further details about gains
and losses relating to level 3 instruments see Note 12.
The fair value of derivatives that are not traded in an active market (over-the-
counter derivatives) is determined using various valuation techniques. Interest
rate swaps, cross-currency swaps, forward rate agreements and foreign
currency forward contracts are all valued by estimating the present value of
future cash flows. Quoted cash and swap rates are used as input for calculating
zero coupon curves used for discounting.
The fair value of commodity contracts recognised in the balance sheet is
calculated by using quotes from actively traded markets when available.
Otherwise, price forecasts from acknowledged external sources are used.
Commodity contracts that fail to meet the own use exemption criteria in IFRS
9 are recognised in the balance sheet and valued on the same principle as
financial contracts. Some of these are long-term energy contracts. In
calculating the fair value of embedded derivatives, valuation techniques are
used in the absence of observable market inputs.
The table below classifies financial instruments within the scope of IFRS 9
measured in the balance sheet at fair value, by valuation method. The different
valuation methods are described as levels and are defined as follows:
Level 1:
Quoted prices (unadjusted) in active markets for identical assets or
liabilities.
Level 2:
Inputs other than quoted prices included within level 1 that are
observable for the asset or liability, either directly (i.e. as prices) or
indirectly (i.e. derived from prices).
Level 3:
Inputs for the asset or liability are not based on observable market
data (i.e. unobservable inputs).
31.12.2025 |
LEVEL 1 |
LEVEL 2 |
LEVEL 3 |
TOTAL |
Financial assets at fair value through profit or loss |
||||
Trading derivatives |
0 |
0 |
0 |
0 |
Derivatives used for hedging |
0 |
0 |
0 |
0 |
Commodity contracts and embedded derivatives |
0 |
0 |
144 |
144 |
Total |
0 |
0 |
144 |
144 |
Financial liabilities at fair value through profit or loss |
||||
Trading derivatives |
0 |
0 |
0 |
0 |
Derivatives used for hedging |
0 |
-7 |
0 |
-7 |
Commodity contracts and embedded derivatives |
0 |
0 |
-101 |
-101 |
Total |
0 |
-7 |
-101 |
-108 |
31.12.2024 |
LEVEL 1 |
LEVEL 2 |
LEVEL 3 |
TOTAL |
Financial assets at fair value through profit or loss |
||||
Trading derivatives |
0 |
0 |
0 |
0 |
Derivatives used for hedging |
0 |
1 |
0 |
1 |
Commodity contracts and embedded derivatives |
0 |
0 |
9 |
9 |
Total |
0 |
1 |
9 |
10 |
Financial liabilities at fair value through profit or loss |
||||
Trading derivatives |
0 |
-1 |
0 |
-1 |
Derivatives used for hedging |
0 |
-71 |
0 |
-71 |
Commodity contracts and embedded derivatives |
0 |
0 |
-324 |
-324 |
Total |
0 |
-72 |
-324 |
-396 |
The following table shows the changes in level 3 instruments.
2025 |
ASSETS |
LIABILITIES |
Balance 1 January |
9 |
-324 |
Gain and losses recognised in profit or loss |
135 |
222 |
Balance 31 December |
144 |
-101 |
The following table is presented in accordance with IFRS 13.94, showing the fair
value of all commodity contracts in level 3 within the scope of IFRS 9 given a
change in assumptions to a reasonably possible alternative.
FAIR VALUE OF DERIVATIVES IN LEVEL 3 GIVEN A REASONABLY POSSIBLE |
|||
ALTERNATIVE |
31.12.2025 |
31.12.2024 |
|
Assets |
|||
Commodity contracts |
Energy price -20% |
38 |
0 |
Embedded derivatives |
NOK appreciation 5% |
0 |
0 |
Total |
38 |
0 |
|
Liabilities |
|||
Commodity contracts |
Energy price -20% |
-42 |
-482 |
Embedded derivatives |
NOK appreciation 5% |
-27 |
-57 |
Total |
-70 |
-539 |
CONSOLIDATED FINANCIAL STATEMENTS
Annual report 2025
Norske Skog
159
I
I
CONSOLIDATED FINANCIAL STATEMENTS
Norske Skog
Annual report 2025
160
I
I
Financial instruments
The group classifies its financial assets or liabilities in the following two
categories: at fair value through profit or loss and at amortised cost. This
classification depends on the purpose for which the financial asset or liability
was acquired. Management determines the classification of its financial asset
or liability at initial recognition and re-evaluates this designation at every
This category has two sub-categories: held for trading, and those designated
at fair value through profit or loss at inception. A financial asset or liability is
classified in this category if it was acquired principally for the purpose of
short-term sale or if so designated by management. Derivatives are also
categorised as held for trading unless designated as hedges. Assets or
liabilities in this category are classified as current assets if they either are held
for trading or are expected to be realised within 12 months of the balance
sheet date.
Non-financial commodity contracts where the relevant commodity is readily
convertible to cash, and where the contracts are not for own use, fall within the
scope of IFRS 9 and such contracts are treated as derivatives. Embedded
derivatives are separated from the host contract and accounted for as a
derivative if the economic characteristics are not closely related to the
economic characteristics and risk of the host contract. See Note 5 and 21 for
more information. Commodity contracts within the scope of IFRS 9 are
classified as current assets unless they are expected to be realised more than
12 months after the balance sheet date. In that case, they are classified as
b) Amortised cost
Amortised cost includes cash, loans, and receivables, and are non-derivative
financial assets with fixed or determinable payments that are not quoted in an
active market. Items classified as amortised cost are current items maturing
less than 12 months after the balance sheet date and are presented as Trade
and other receivables or Cash and cash equivalents in the balance sheet.
Items maturing later than 12 months after the balance sheet date are
FAIR VALUE |
||||||
THROUGH PROFIT |
TOTAL FINANCIAL |
NON-FINANCIAL |
||||
31.12.2025 |
NOTE |
OR LOSS |
AMORTISED COST |
ASSETS |
ASSETS |
TOTAL |
Other non-current assets |
23 |
104 |
67 |
171 |
8 |
179 |
Trade and other receivables |
23 |
0 |
875 |
875 |
633 |
1 508 |
Cash and cash equivalents |
25 |
0 |
1 082 |
1 082 |
0 |
1 082 |
Other current assets |
23 |
144 |
0 |
144 |
7 |
151 |
FAIR VALUE |
||||||
THROUGH PROFIT |
TOTAL FINANCIAL |
NON-FINANCIAL |
||||
31.12.2025 |
NOTE |
OR LOSS |
AMORTISED COST |
LIABILITIES |
LIABILITIES |
TOTAL |
Interest-bearing non-current liabilities |
29 |
0 |
4 403 |
4 403 |
0 |
4 403 |
Interest-bearing current liabilities |
29 |
0 |
974 |
974 |
0 |
974 |
Other non-current liabilities |
30 |
79 |
0 |
79 |
409 |
488 |
Trade and other payables |
30 |
0 |
2 151 |
2 151 |
213 |
2 363 |
Other current liabilities |
30 |
46 |
0 |
46 |
208 |
254 |
FAIR VALUE |
||||||
THROUGH PROFIT |
TOTAL FINANCIAL |
NON-FINANCIAL |
||||
31.12.2024 |
NOTE |
OR LOSS |
AMORTISED COST |
ASSETS |
ASSETS |
TOTAL |
Other non-current assets |
23 |
106 |
61 |
167 |
10 |
177 |
Trade and other receivables |
23 |
0 |
718 |
718 |
535 |
1 253 |
Cash and cash equivalents |
25 |
0 |
1 127 |
1 127 |
0 |
1 127 |
Other current assets |
23 |
10 |
0 |
10 |
19 |
29 |
FAIR VALUE |
||||||
THROUGH PROFIT |
TOTAL FINANCIAL |
NON-FINANCIAL |
||||
31.12.2024 |
NOTE |
OR LOSS |
AMORTISED COST |
LIABILITIES |
LIABILITIES |
TOTAL |
Interest-bearing non-current liabilities |
29 |
0 |
4 475 |
4 475 |
0 |
4 475 |
Interest-bearing current liabilities |
29 |
0 |
771 |
771 |
0 |
771 |
Other non-current liabilities |
30 |
204 |
0 |
204 |
321 |
525 |
Trade and other payables |
30 |
0 |
1 889 |
1 889 |
229 |
2 118 |
Other current liabilities |
30 |
196 |
0 |
196 |
22 |
218 |
CONSOLIDATED FINANCIAL STATEMENTS
Annual report 2025
Norske Skog
161
I
I
AND LIABILITIES
The table below classifies financial assets and liabilities by valuation method.
The different valuation methods are described as levels and are defined as
follows:
Level 1: Quoted prices (unadjusted) in active markets for identical assets or
liabilities.
Level 2: Inputs other than quoted prices included within level 1 that are
observable for the asset or liability, either directly (i.e. as prices) or indirectly
(i.e. derived from prices).
Level 3: Inputs for the asset or liability are not based on observable market
data (i.e. unobservable inputs).
31.12.2025 |
CARRYING AMOUNT |
FAIR VALUE |
LEVEL 1 |
LEVEL 2 |
LEVEL 3 |
Derivatives |
0 |
0 |
0 |
0 |
0 |
Commodity contracts |
0 |
0 |
0 |
0 |
0 |
Miscellaneous other non-current assets |
171 |
171 |
0 |
0 |
171 |
Other non-current assets |
171 |
171 |
0 |
0 |
171 |
Trade receivables |
428 |
428 |
0 |
0 |
428 |
VAT receivables |
88 |
88 |
0 |
0 |
88 |
Other receivables |
358 |
358 |
0 |
0 |
358 |
Trade and other receivables |
875 |
875 |
0 |
0 |
875 |
Derivatives |
0 |
0 |
0 |
0 |
0 |
Commodity contracts |
144 |
144 |
0 |
0 |
144 |
Current investments |
0 |
0 |
0 |
0 |
0 |
Other current assets |
144 |
144 |
0 |
0 |
144 |
Cash and cash equivalents |
1 082 |
1 082 |
0 |
101 |
981 |
Interest-bearing non-current liabilities |
4 403 |
4 337 |
0 |
1 316 |
3 021 |
Interest-bearing current liabilities |
974 |
974 |
0 |
0 |
974 |
Total interest-bearing liabilities |
5 377 |
5 310 |
0 |
1 316 |
3 994 |
Derivatives |
79 |
79 |
0 |
0 |
79 |
Commodity contracts |
0 |
0 |
0 |
0 |
0 |
Other non-current liabilities |
79 |
79 |
0 |
0 |
79 |
Trade payables |
1 527 |
1 527 |
0 |
0 |
1 527 |
Other payables |
624 |
624 |
0 |
0 |
624 |
Trade and other payables |
2 151 |
2 151 |
0 |
0 |
2 151 |
Derivatives |
21 |
21 |
0 |
7 |
15 |
Commodity contracts |
7 |
7 |
0 |
0 |
7 |
Financial current liabilities |
17 |
17 |
0 |
0 |
17 |
Other current liabilities |
46 |
46 |
0 |
7 |
39 |
CONSOLIDATED FINANCIAL STATEMENTS
Norske Skog
Annual report 2025
162
I
I
31.12.2024 |
CARRYING AMOUNT |
FAIR VALUE |
LEVEL 1 |
LEVEL 2 |
LEVEL 3 |
Derivatives |
0 |
0 |
0 |
0 |
0 |
Commodity contracts |
0 |
0 |
0 |
0 |
0 |
Miscellaneous other non-current assets |
167 |
167 |
0 |
0 |
167 |
Other non-current assets |
167 |
167 |
0 |
0 |
167 |
Trade receivable |
420 |
420 |
0 |
0 |
420 |
VAT receivables |
126 |
126 |
0 |
0 |
126 |
Other receivables |
172 |
172 |
0 |
0 |
172 |
Trade and other receivables |
718 |
718 |
0 |
0 |
718 |
Derivatives |
1 |
1 |
0 |
0 |
1 |
Commodity contracts |
9 |
9 |
0 |
1 |
8 |
Current investments |
0 |
0 |
0 |
0 |
0 |
Other current assets |
10 |
10 |
0 |
1 |
9 |
Cash and cash equivalents |
1 127 |
1 127 |
0 |
404 |
723 |
Interest-bearing non-current liabilities |
4 475 |
4 457 |
0 |
1 365 |
3 092 |
Interest-bearing current liabilities |
771 |
771 |
0 |
0 |
771 |
Total interest-bearing liabilities |
5 246 |
5 229 |
0 |
1 365 |
3 864 |
Derivatives |
111 |
111 |
0 |
0 |
111 |
Commodity contracts |
93 |
93 |
0 |
0 |
93 |
Other non-current liabilities |
204 |
204 |
0 |
0 |
204 |
Trade payables |
1 282 |
1 282 |
0 |
0 |
1 282 |
Other payables |
607 |
607 |
0 |
0 |
607 |
Trade and other payables |
1 889 |
1 889 |
0 |
0 |
1 889 |
Derivatives |
87 |
87 |
0 |
0 |
87 |
Commodity contracts |
105 |
105 |
0 |
72 |
33 |
Financial current liabilities |
4 |
4 |
0 |
0 |
4 |
Other current liabilities |
196 |
196 |
0 |
72 |
123 |
The fair value of bonds (interest-bearing non-current liabilities) (Level 2) is
assessed by using price indications from banks at the reporting date. There is
some uncertainty associated with the calculated fair value of Level 3 interest-
bearing liabilities. The fair value of other interest-bearing liabilities (Level 3) is
based on amortised cost.
The fair values of cash and cash equivalents, trade receivables and other
receivables, other assets, trade payables and other payables and other current
liabilities remain largely consistent with the book value due to the short
maturities of such positions. The fair value of derivatives and commodity
Receivables and other non-current assets
Trade receivables are amounts due from customers for goods sold or services
performed in the ordinary course of business. Trade receivables are held to
due date except for those that are covered by the factoring agreements
outlined below. Trade receivables are recognised at invoiced amount, less
provision for bad debt. The impairment model for financial assets under IFRS
9 require recognition of uncertain receivables allowances based on expected
credit losses. The group has an expected credit loss model for trade
receivables, whereby expected credit losses are recognised based on ageing
CONSOLIDATED FINANCIAL STATEMENTS
Annual report 2025
Norske Skog
163
I
I
NOTE |
31.12.2025 |
31.12.2024 |
|
Trade and other receivables |
|||
Trade receivables |
482 |
474 |
|
Provision for bad debt |
-54 |
-52 |
|
VAT receivables |
88 |
126 |
|
Prepaid expenses |
68 |
64 |
|
Other receivables |
924 |
641 |
|
Total |
1 508 |
1 253 |
|
Other current assets |
|||
Derivatives |
0 |
1 |
|
Commodity contracts |
144 |
9 |
|
Other current assets |
7 |
19 |
|
Total |
151 |
29 |
|
Other non-current assets |
|||
Long-term shareholdings |
20 |
104 |
106 |
Pension plan assets |
27 |
8 |
10 |
Other non-current receivables |
67 |
61 |
|
Total |
179 |
177 |
Norske Skog Bruck, Norske Skog Golbey, Norske Skog Skogn and Norske
Skog Saugbrugs have factoring facility agreements where the future cash flow
on certain trade receivables is sold. The facility has a limit of EUR 25 million for
Norske Skog Bruck, a limit of EUR 40 million for Norske Skog Golbey and a
combined limit of NOK 400 million for Norske Skog Skogn and Norske Skog
Saugbrugs. There are no financial covenants in these factoring facility
agreements. Trade receivables that have been sold are deducted from trade
receivables in the balance sheet. The utilisation at 31 December 2025 was
NOK 660 million (NOK 668 million).
At 31 December 2025 advances received from contracts with customers
amounted to NOK 0 million and other revenue accruals for invoice not sent
amounted to NOK 0 million (NOK 0 million and NOK 0 million). In addition, received
advances from customers not invoiced NOK 0 million at 31 December 2025
(NOK 0 million).
The credit risk on trade and other receivables is continuously monitored,
independent of due date. The group’s sales are mainly to large customers with
a historically low degree of default. Collateral as security is not normally
requested. Further information regarding the group’s credit policy for sales is
provided in Note 5.
AGEING OF THE GROUP’S CURRENT RECEIVABLES |
31.12.2025 |
31.12.2024 |
Not due |
1 412 |
1 094 |
0 to 3 months |
101 |
166 |
3 to 6 months |
0 |
3 |
Over 6 months |
49 |
44 |
Total 1) |
1 562 |
1 305 |
1) Does not include provision for bad debt.
The maximum credit risk exposure at the year-end is the fair value of each
Inventories
Inventories are stated at the lower of cost and net realisable value. Cost is
determined using weighted average cost. The cost of finished goods and
work in progress comprises raw materials, direct labour, other direct costs
and related production overheads (based on normal operating capacity). It
excludes borrowing costs. Net realisable value is the estimated selling price
in the ordinary course of business, less applicable variable selling expenses.
Other production materials include packaging materials, machine clothing,
maintenance materials, operating materials and certain spare parts. Spare
parts held as inventory are spare parts which do not meet the criteria for being
31.12.2025 |
31.12.2024 |
|
Raw material |
190 |
278 |
Work in progress |
13 |
8 |
Other production materials |
614 |
577 |
Finished goods |
554 |
527 |
Total |
1 371 |
1 390 |
Cash and cash equivalents
Cash and cash equivalents include cash in hand, deposits held at call with
banks and other short-term, highly liquid investments with original maturities
31.12.2025 |
31.12.2024 |
||
Bank and other deposits |
750 |
469 |
|
Restricted cash |
231 |
255 |
|
Money market fund |
101 |
404 |
|
Total |
1 082 |
1 127 |
|
Cash and cash equivalents attributable to |
|||
discontinued operations |
26 |
0 |
50 |
Total |
1 082 |
1 177 |
SALES OF SHARES IN SUBSIDIARIES |
2025 |
2024 |
Proceeds from sale of shares in subsidiaries |
167 |
0 |
Disposal of subsidiary, net of cash disposed |
-84 |
-91 |
Net proceeds from sale of shares in subsidiaries |
83 |
-91 |
CONSOLIDATED FINANCIAL STATEMENTS
Norske Skog
Annual report 2025
164
I
I
Discontinued operations
The group classifies non-current assets and disposal groups as held for sale if
their carrying amounts will be recovered principally through a sale transaction
rather than through continuing use. Non-current assets and disposal groups
classified as held for sale are measured at the lower of their carrying amount
and fair value less costs to sell. Costs to sell are the incremental costs directly
attributable to the disposal of an asset (disposal group), excluding finance
costs and income tax expense.
The criteria for held for sale classification is regarded as met only when the
sale is highly probable, and the asset or disposal group is available for
immediate sale in its present condition. Actions required to complete the sale
should indicate that it is unlikely that significant changes to the sale will be
made or that the decision to sell will be withdrawn. Management must be
committed to the plan to sell the asset and the sale expected to be completed
within one year from the date of the classification.
Property, plant and equipment and intangible assets are not depreciated or
amortised once classified as held for sale. Assets and liabilities classified as
held for sale are presented separately as current items in the statement of
financial position.
Discontinued operations are excluded from the results of continuing
operations and are presented as a single amount as profit or loss after tax
from discontinued operations in the statement of profit or loss.
The group includes proceeds from disposal in cash flows from discontinued
operations.
Additional disclosures are provided below. All other notes to the financial
statements include amounts for continuing operations, unless indicated
otherwise.
In December 2024 a concrete sales process was initiated for the sale of
Norske Skog Industries Australia Ltd with subsidiaries. The plan to sell was
approved by the board on 20 December 2024. On 7 February 2025 an agree-
ment to sell Norske Skog Industries Australia Ltd with subsidiaries was signed
and the entities were sold with effect from 1 April 2025.
The business of Norske Skog Industries Australia Ltd with subsidiaries, which
represented the segment publication paper Australasia, were consequently
classified as a disposal group held for sale and as a discontinued operation in
the 2024 financial statements.
The financial performance and cash flow information presented below are for
DISCONTINUED INCOME STATEMENT |
NOTE |
2025 |
2024 |
Operating revenue |
442 |
1 855 |
|
Other operating income |
1 |
9 |
|
Total operating income |
444 |
1 865 |
|
Distribution costs |
-62 |
-247 |
|
Cost of materials |
-265 |
-1 176 |
|
Employee benefit expenses |
-86 |
-326 |
|
Other operating expenses |
-52 |
-196 |
|
Restructuring expenses |
0 |
-11 |
|
Depreciation |
18 |
0 |
-37 |
Impairments |
18 |
-11 |
-176 |
Total operating expenses |
-476 |
-2 169 |
|
Operating earnings |
-32 |
-305 |
|
Financial income |
0 |
5 |
|
Financial expense |
-5 |
-19 |
|
Gains/(losses) on foreign currency |
-1 |
-2 |
|
Profit/(loss) before income taxes |
-37 |
-321 |
|
Income taxes |
0 |
0 |
|
Profit/(loss) from discontinued operations |
-37 |
-321 |
CONSOLIDATED FINANCIAL STATEMENTS
Annual report 2025
Norske Skog
165
I
I
DISCONTINUED COMPREHENSIVE INCOME | 2025 | 2024 |
Profit/(loss) from discontinued operations | -37 | -321 |
Items that may be reclassified subsequently to profit or loss | ||
Currency translation differences | 4 | 28 |
Reclassified translation differences upon divestment of foreign operations | 0 | -7 |
Tax expense on translation differences | 0 | 0 |
Total | 4 | 21 |
Other comprehensive income discontinued operations | 4 | 21 |
Total comprehensive income discontinued operations | -34 | -300 |
Earnings per share from discontinued operations (NOK) | ||
Basic earnings per share | -0.44 | -3.78 |
Diluted earnings per share | -0.44 | -3.78 |
The carrying amounts of assets and liabilities as at the date of sale 1 April 2025 were:
DISCONTINUED BALANCE SHEET AT THE DATE OF SALE | 01.04.2025 |
Assets | |
Intangible assets | 1 |
Property, plant and equipment | 81 |
Inventories | 246 |
Trade and other receivables | 185 |
Other current assets | 1 |
Cash and cash equivalents | 84 |
Assets held for sale | 598 |
Liabilities | |
Employee benefit obligations | 2 |
Interest-bearing non-current liabilities | 41 |
Other non-current liabilities | 96 |
Trade and other payables | 253 |
Interest-bearing current liabilities | 11 |
Other current liabilities | 26 |
Liabilities relating to assets classified as held for sale | 428 |
Net assets held for sale | 169 |
DETAILS OF THE SALE OF NORSKE SKOG INDUSTRIES AUSTRALIA LTD WITH SUBSIDIARIES | 2025 |
Consideration | 169 |
Carrying amount of net assets sold | 169 |
Gain/loss on sale before incometax | 0 |
The transaction does not trigger any income tax for the group.
CONSOLIDATED FINANCIAL STATEMENTS
Norske Skog
Annual report 2025
166
I
I
The major classes of assets and liabilities of publication paper Australasia classified as held for sale on 31 December are as follows:
DISCONTINUED BALANCE SHEET |
NOTE |
31.12.2025 |
31.12.2024 |
Assets |
|||
Intangible assets |
18 |
0 |
1 |
Property, plant and equipment |
18 |
0 |
91 |
Inventories |
0 |
242 |
|
Trade and other receivables |
0 |
245 |
|
Other current assets |
0 |
1 |
|
Cash and cash equivalents |
25 |
0 |
50 |
Assets held for sale |
0 |
631 |
|
Liabilities |
|||
Employee benefit obligations |
0 |
3 |
|
Interest-bearing non-current liabilities |
0 |
46 |
|
Other non-current liabilities |
0 |
101 |
|
Trade and other payables |
0 |
267 |
|
Interest-bearing current liabilities |
0 |
12 |
|
Other current liabilities |
0 |
33 |
|
Liabilities directly associated with assets held for sale |
0 |
462 |
The net cash flow incurred by publication paper Australasia is as follows:
DISCONTINUED STATEMENT OF CASH FLOW |
2025 |
2024 |
Cash generated from operations |
490 |
1 922 |
Cash used in operations |
-482 |
-1 950 |
Interest payments received |
0 |
5 |
Interest payments made |
-4 |
-14 |
Net cash flow from operating activities 1) |
5 |
-36 |
Purchases of property, plant and equipment and intangible assets |
-9 |
-33 |
Sales of property, plant and equipment and intangible assets |
0 |
0 |
Sales of shares in companies and other financial instruments |
-84 |
-91 |
Net cash flow from investing activities |
-94 |
-124 |
Repayments of loans |
-3 |
-29 |
Change in cashpool payable |
47 |
30 |
Net cash flow from financing activities |
44 |
1 |
Foreign currency effects on cash and cash equivalents |
-5 |
-1 |
Total change in cash and cash equivalents |
-50 |
-160 |
Cash and cash equivalents at start of period |
50 |
210 |
Cash and cash equivalents at end of period |
0 |
50 |
1) Reconciliation of net cash flow from operating activities |
||
Profit/(loss) before income taxes from discontinued operations |
-37 |
-321 |
Change in working capital |
29 |
28 |
Depreciation and impairments |
11 |
213 |
Gain and losses from divestment of business activities and property, plant and equipment |
0 |
46 |
Net financial items without cash effect |
2 |
7 |
Adjustment for other items |
0 |
-9 |
Net cash flow from operating activities |
5 |
-36 |
CONSOLIDATED FINANCIAL STATEMENTS
Annual report 2025
Norske Skog
167
I
I
Pension and other employee obligations
Pension obligations
Group companies operate various pension schemes. These are generally
funded through payments to insurance companies, as determined by actuarial
calculations. The group has both defined benefit and defined contribution
plans.
The liability recognised in the balance sheet in respect of defined benefit
pension plans is the present value of the defined benefit obligation at the
balance sheet date less the fair value of plan assets. The defined benefit
obligation is calculated annually by independent actuaries using the projected
unit credit method.
Actuarial gains and losses arising from experience adjustments and changes
in actuarial assumptions are charged or credited to equity in other
comprehensive income in the period in which they arise. Past-service costs
are recognised immediately in the income statement. The interest component
of the cost is included in financial expenses.
The supplementary collective pension scheme for salaries exceeding 12G is
classified as a defined benefit plan in which the obligation is recognised in the
balance sheet and the corresponding cost recognised in the income statement
in the period in which they accrue.
A defined contribution plan is a pension plan under which the group pays fixed
contributions into a separate entity. These contributions are made to publicly-
or privately administered pension insurance plans on a mandatory, contractual
or voluntary basis. These contributions are recognised as an employee benefit
Multiemployer defined benefit plans where available information is insufficient
to use defined benefit accounting are accounted for as if the plan were a
defined contribution plan, with contributions recognised as employee benefit
expenses in the period in which they accrue and no provision is made for the
obligation.
Other employee obligations
The groups other employee benefits are future benefits that the employees
have earned in return for their service in current and prior periods.
The leave obligations cover the groups liabilities for long service leave and
annual leave which are classified as either other non-current liabilities or
short-term liabilities. Actuarial gains and losses arising from experience
adjustments and changes in actuarial assumptions are recognised in the
EMPLOYEE BENEFIT OBLIGATIONS |
2025 |
2024 |
Pension obligations |
248 |
281 |
Other long-term employee benefit obligations |
11 |
15 |
Total employee benefit obligations |
259 |
296 |
A) PENSION OBLIGATIONS
Norske Skog has various pension schemes in accordance with local conditions
and practices in the countries in which the group operates. A total of 1
625
active and former employees are covered by such schemes. Of these,
576 people are covered by defined benefit plans and 1
224 people by defined
contribution plans.
The key terms in Norske Skog’s major defined benefit plans are shown in the
table below.
BENEFIT IN% OF |
|||||
PENSIONABLE |
YEARS OF |
PENSIONABLE |
EARLY RETIREMENT |
ACTIVE |
|
EARNINGS |
SERVICE |
AGE |
AGE |
MEMBERS |
|
Norske Skog ASA |
65 |
30 |
70 |
62 |
0 |
Norske Skog Saugbrugs AS |
65 |
30 |
70 |
62 |
0 |
Norske Skog Skogn AS |
65 |
30 |
70 |
62 |
0 |
Norske Skog Golbey SAS |
0 |
43 |
64 |
62 |
366 |
CONSOLIDATED FINANCIAL STATEMENTS
Norske Skog
Annual report 2025
168
I
I
The defined benefit plan in Norske Skog Bruck GmbH and Norske Skog
Deutschland GmbH is closed.
The defined benefit schemes in Norway cover people born before 1 January
1959 and who were employed before 1 January 2011 when the plan was
closed. The defined benefit obligations in Norway only encompass active
members since they leave the defined benefit scheme (having a paid-up
policy) when they retire.
Plan assets of the pension schemes in Norske Skog ASA, Norske Skog
Saugbrugs AS and Norske Skog Skogn AS are managed by a life insurance
company and invested in accordance with the general guidelines governing
investments by life insurance companies in Norway.
When evaluating plan assets, it is based on the assumptions as at 31 December.
This estimated value is adjusted every year in accordance with the figures for
the market value of the assets provided by the insurance company.
When measuring the incurred obligations, it is based on the assumptions as at
31 December. This estimated obligation is adjusted every year in accordance
with the figures for incurred pension obligations provided by the actuary.
In addition to the benefit obligation funded through insurance plans, the group
has unfunded benefit obligations. The unfunded obligations include estimated
future obligations relating to the former Norwegian early retirement scheme
and pensions for senior management and directors. Obligations relating to
senior management pensions are partly funded through a supplementary
retirement plan with a life insurance company.
In addition to defined benefit plans, there are also various defined contribution
plans. Norwegian entities have a defined contribution scheme with a
contribution of 5% for earnings up to 7.1 G and 17% between 7.1 and 12 G
.
The group participates in a pension plan that gives the majority of its
Norwegian employees a life-long supplement to the ordinary pension. The
plan is a defined benefit pension plan, and the benefits are financed through a
pooled arrangement by private sector employers (Avtalefestet pensjon, AFP).
The premium is a percentage of the salary between 1G and 7.1G
. The
information required to calculate or measure the groups’ share of the plan as
a defined benefit plan is not available. The plan is therefore accounted for as a
defined contribution plan. The employer contributions are included in
ASSUMPTIONS MADE WHEN CALCULATING FUTURE BENEFIT OBLIGATIONS |
2025 |
2024 |
Discount rate |
3.61% |
3.07% |
Expected return on plan assets |
4.00% |
3.03% |
Salary adjustment |
3.75% |
3.25% |
Inflation rate |
3.20% |
2.90% |
Pension adjustment |
2.41% |
2.08% |
The discount rate applied for the pension schemes in Norway for 2025 is
based on the interest rate for covered bonds. Subsidiaries can deviate from
these assumptions if local conditions require this. The discount rates applied
vary from 1.8% to 4.0% and pension adjustments vary from 2.0% to 2.7%
.
Norske Skog has used the mortality table K2013BE in Norway, Richttafeln
2018G in Germany and AVO 2018-P in Austria.
PENSION EXPENSE |
2025 |
2024 |
Pension expense, defined benefit plan |
2 |
21 |
Pension expense, defined contribution plan |
39 |
42 |
Pension expense, multiemployer plan |
11 |
14 |
Total pension expense |
53 |
77 |
Net interest expense |
11 |
10 |
High expense for defined benefit pension in 2024 is due to corrections of
prior periods.
Estimated payments to the group’s defined benefit pension schemes in 2026
amounts to NOK 13 million (NOK 6 million).
PENSION PLANS IN THE BALANCE SHEET
SPESIFICATION OF PENSION PLANS IN THE BALANCE SHEET |
2025 |
2024 |
Pension assets in the balance sheet |
8 |
10 |
Pension liabilities in the balance sheet |
-248 |
-281 |
Net pension obligations |
-239 |
-272 |
Net unfunded pension plans |
-238 |
-275 |
Net partly or fully funded pension plans |
7 |
9 |
Pension assets is included in line other non-current assets and pension
liabilities is included in the line employee benefit obligations.
CONSOLIDATED FINANCIAL STATEMENTS
Annual report 2025
Norske Skog
169
I
I
UNFUNDED PENSION PLANS
CHANGES IN PENSION OBLIGATIONS FOR UNFUNDED PENSION PLANS, PROJECTED BENEFIT OBLIGATIONS | ||
INCLUDING NATIONAL INSURANCE CONTRIBUTIONS | 2025 | 2024 |
Balance 1 January | -275 | -255 |
Adjustment to opening balance (due to reclassification) | 0 | -3 |
Current year's service cost | 0 | -4 |
Current year's interest cost | -8 | -10 |
Pensions benefits paid | 29 | 24 |
Remeasurements (loss)/gain OCI | 16 | -14 |
Other changes | 0 | -1 |
Currency translation differences | 0 | -13 |
Balance 31 December | -238 | -275 |
PARTLY OR FULLY FUNDED PENSION PLANS
CHANGES IN PENSION OBLIGATIONS FOR PARTLY OR FULLY FUNDED PENSION PLANS, PROJECTED BENEFIT | ||
OBLIGATIONS INCLUDING NATIONAL INSURANCE CONTRIBUTIONS | 2025 | 2024 |
Balance 1 January | -105 | -106 |
Current year's service cost | 0 | -1 |
Current year's interest cost | -5 | -4 |
Past service cost - curtailment/plan amendment | -1 | 0 |
Settlement and (loss)/gain on settlement | 72 | 0 |
Pension benefits paid | 6 | 5 |
Remeasurements (loss)/gain OCI | 8 | 2 |
Other changes | 0 | -2 |
Balance 31 December | -24 | -105 |
CHANGES IN PLAN ASSETS FOR PARTLY OR FULLY FUNDED PENSION PLANS, PLAN ASSETS AT FAIR VALUE | 2025 | 2024 |
Balance 1 January | 114 | 111 |
Return on plan assets (interest income) | 1 | 4 |
Settlement | -72 | 0 |
Employer contribution including payroll tax | 2 | 4 |
Pension benefits paid | -5 | -5 |
Remeasurements (loss)/gain OCI | -5 | 0 |
Other changes | -1 | 0 |
Balance 31 December | 32 | 114 |
Net assets/obligations (-) partly or fully funded pension plans | 7 | 9 |
SPECIFICATION OF REMEASUREMENT GAINS/LOSSES IN OTHER COMPREHENSIVE INCOME (OCI) | 2025 | 2024 |
Actuarial loss/(gain) - change in discount rate | -4 | 0 |
Actuarial loss/(gain) - change in other financial assumptions | 0 | 9 |
Actuarial loss/(gain) - experience obligation | -7 | 0 |
Actuarial loss/(gain) - experience assets | -8 | 4 |
Asset ceiling - asset adjustment | 0 | 1 |
Remeasurements loss/(gain) in OCI | -19 | 14 |
CONSOLIDATED FINANCIAL STATEMENTS
Norske Skog
Annual report 2025
170
I
I
2025 |
2024 |
|||
INVESTMENT PROFILE FOR PENSION FUNDS |
FUNDS |
DISTRIBUTION |
FUNDS |
DISTRIBUTION |
Shares |
5 |
17% |
16 |
14% |
Bonds |
20 |
63% |
77 |
68% |
Properties and real estate |
5 |
14% |
17 |
15% |
Money market |
1 |
2% |
1 |
1% |
Other |
1 |
4% |
3 |
3% |
Total |
32 |
100% |
114 |
100% |
SENSITIVITY ANALYSIS
Norske Skog has performed sensitivity analyses of material group companies
for the most important assumptions related to defined benefit schemes to
predict how fluctuations will impact pension liabilities in the consolidated
balance sheet. In relation to the assumptions made in the calculation of
pension obligations the amount is most sensitive to changes in discount rate
and pension growth rate. The sensitivity of the pension obligation is shown in
the table below:
SENSITIVITY |
INCREASE |
DECREASE |
Discount rate - 0.5% |
-1 |
1 |
Future pension - 0.5% |
1 |
-1 |
The above sensitivity analyses are based on a change in an assumption while
holding all other assumptions constant. In practice, this is unlikely to occur,
and changes in some of the assumptions may be correlated. No data is
available for decrease of future pension adjustment. The sensitivity analysis is
based on actuarial calculations for the Norwegian schemes.
OTHER EMPLOYEE OBLIGATIONS
OTHER EMPLOYEE BENEFIT EXPENSE |
2025 |
2024 |
Net expense/remeasurement |
0 |
-14 |
Net interest expense |
0 |
1 |
CHANGES IN OTHER EMPLOYEE BENEFITS |
2025 |
2024 |
Balance 1 January |
-15 |
-70 |
Adjustments to opening balance due to reclassification |
0 |
-2 |
Current year's service cost |
0 |
-1 |
Current year's interest cost |
0 |
-1 |
Remeasurements (loss)/gain |
0 |
15 |
Payments made |
4 |
4 |
Other changes |
0 |
5 |
Discontinued operations |
0 |
37 |
Currency translation differences |
1 |
-2 |
Balance 31 December |
-11 |
-15 |
OTHER EMPLOYEE BENEFITS IN THE BALANCE SHEET |
2025 |
2024 |
Other non-current employee benefit obligations |
11 |
15 |
Total other employee benefits 31 December |
11 |
15 |
The obligation classified as current relates to employees that have completed
the required period of service and the group does not have an unconditional
right to defer settlement for these obligations. Based on previous experience,
the group does not expect all employees to take the full amount of accrued
leave or require payment within the next 12 months.
The current part is included in the balance sheet line other current liabilities.
The non-current employee benefit obligations is included in the balance sheet
CONSOLIDATED FINANCIAL STATEMENTS
Annual report 2025
Norske Skog
171
I
I
Provisions
Provisions for environmental restoration, dismantling costs, restructuring
activities and legal claims are recognised when the group has a present legal
or constructive obligation as a result of past events, an outflow of resources is
more likely than not to be required to settle the obligation and the amount can
be reliably estimated.
Where a number of similar obligations exist, the likelihood that an outflow will
be required in settlement is determined by considering the class of obligations
as a whole. A provision is recognised even if the likelihood of an outflow with
respect to any one item included in the same class of obligations may be small.
Provisions are measured at the present value of the best estimate of the
expenditure required to settle the present obligation using a pre-tax rate that
reflects current market assessments of the time value of money and the risks
specific to the obligation. The increase in the provision due to passage of time
RESTRUCTURING |
ENVIRONMENTAL |
|
PROVISION |
PROVISION |
|
Balance 1 January 2024 |
29 |
169 |
Changes and new provisions |
16 |
7 |
Utilised during the year |
-23 |
0 |
Classified as liabilities relating to assets held for sale |
-8 |
-143 |
Currency translation differences |
-7 |
1 |
Balance 31 December 2024 |
7 |
34 |
Changes and new provisions |
5 |
-1 |
Utilised during the year |
-8 |
0 |
Balance 31 December 2025 |
4 |
33 |
RESTRUCTURING PROVISION
Restructuring provision is included in the balance sheet line other current
liabilities. This includes for example severance (redundancy) payments, early
retirement or other arrangements for employees leaving the company,
external costs to lawyers and legal advisors in relation to the restructuring
process, lease termination costs and onerous contracts. The restructuring
provision of NOK 4 million at 31 December 2025 includes various restructuring
activities included provision for severance payments and other costs
(Publication paper NOK 4 million (NOK 7 million)). The amount expensed in
2025 in relation to restructuring activities amounted to NOK 5 million
(Corporate functions NOK 0 million (NOK 4 million), and publication paper
NOK 5 (NOK 12 million)).
ENVIRONMENTAL PROVISION
The group’s provision for environmental obligations is presented in the
balance sheet as other non-current liabilities. The provision is related to
estimated future costs for cleaning up any environmental pollution caused by
Norske Skog production units. The provision will mainly be realised in a future
period upon a potential shut down of the production activities of any of the
Norske Skog production units. Increased environmental requirements from
local governments may also lead to realisation of this provision at an earlier
point in time.
Provisions for future environmental obligations amounted to NOK 33 million
at 31 December 2025 compared to NOK 34 million at 31 December 2024.
Resources spent on environmental activities during 2025 was NOK 0 million
(NOK 0 million).
The carrying value of the provision is the best estimate made by measuring
the expected value of the specific obligations, discounted to present value
using a long-term risk-free interest rate when the time value of money is
material. Changes in factors included in the expected value will impact the
carrying value of the obligation. To illustrate the sensitivity, a reduction in the
future discount rate by one percentage point would increase the provision by
approximately NOK 1 million. Changes in accounting estimates not related to
assets are classified as operating items in the income statement, and the
periodic unwinding of the discount is recognised within the income statement
line financial expenses.
DISMANTLING PROVISION
Provisions related to future dismantling costs arising from a future closing
down of production facilities amounted to NOK 0 million at 31 December 2025,
compared to NOK 0 million at 31 December 2024.
The total amount is normally classified as non-current and will only be realised
at the time of a future shut down of any of the Norske Skog production units.
The provision is the net present value of the future estimated costs, calculated
using a long-term risk-free interest rate. The periodic unwinding of the discount
is recognised in the income statement line financial expenses. The opposite
entry for dismantling provision and change in provision estimates is property,
plant and equipment.
Norske Skog is an international company that, through its ongoing business
operations, will be exposed to litigation and claims from public authorities and
contracting parties as well as assessments from public authorities in each
CONSOLIDATED FINANCIAL STATEMENTS
Norske Skog
Annual report 2025
172
I
I
Interest-bearing liabilities
Borrowings are recognised initially at fair value, net of transaction costs incurred.
Borrowings are subsequently carried at amortised cost using the effective
INTEREST-BEARING DEBT |
31.12.2025 |
31.12.2024 |
Bonds |
1 400 |
1 400 |
Debt to financial institutions |
3 851 |
3 752 |
Factoring facilities |
0 |
27 |
Total |
5 251 |
5 179 |
CURRENCY AMOUNT |
NOK |
NOK |
|
INTEREST-BEARING DEBT |
31.12.2025 |
31.12.2025 |
31.12.2024 |
EUR |
245 |
2 897 |
3 214 |
Total interest-bearing debt in foreign currencies |
2 897 |
3 214 |
|
NOK |
2 354 |
1 964 |
|
Total interest-bearing debt |
5 251 |
5 179 |
In July 2025, Norske Skog Skogn and Norske Skog Golbey received approval
from lenders to revise the repayment schedules for the main financing
facilities at the mills. Furthermore, Norske Skog Skogn extended the maturity
of its NOK 500 million term loan with 12 months to September 2028.
In December 2025, Norske Skog Skogn issued a new term loan under its
existing financing facility of NOK 400 million, increasing the total outstanding
amount to NOK 900 million. On 31 December 2025, the new loan was fully
drawn.
Norske Skog has entered into credit facility agreements in an aggregate
amount of EUR 265 million to finance its investment to convert two paper
machines into producing packaging paper. EUR 193 million relates to Norske
Skog Golbey and EUR 72 million relates to Norske Skog Bruck. The borrowing
entities are Norske Skog Golbey SAS and Norske Skog Bruck GmbH, and the
facilities are fully guaranteed by Norske Skog ASA. The facilities have been
drawn and repayment has commenced.
The incineration boiler is financed by a EUR 54 million credit facility. The
facility is repaid in quarterly instalments up until the final maturity date in
2028. The borrower under the facility is Norske Skog Bruck GmbH and
Norske Skog ASA has provided a guarantee of EUR 20 million. The facility has
been drawn and repayment has commenced.
The financial covenants applicable to Norske Skog on a consolidated basis
are (i) freely available and unrestricted cash and cash equivalents of minimum
NOK 100 million, (ii) EBITDA to net interest costs of minimum 2.0:1, (iii) book
equity to total assets of minimum 25%, and (iv) minimum last twelve months
(LTM) EBITDA of NOK 400 million. In addition, there are various company
specific financial covenants applicable to the subsidiaries acting as borrowers
under the respective credit facilities.
The group does not expect to breach any financial covenants in the coming
12-month period.
The EBITDA used in the calculation of financial covenants may differ from the
EBITDA shown in the financial reporting due to adjustment requirements in
the facility agreements.
The remaining financing arrangements for the group includes leasing,
factoring, and other credit facilities in the mill owning entities.
Norske Skog Skogn AS and Norske Skog Saugbrugs AS have pledged certain
parts of its property and assets in favour of the combined NOK 900 million
term loan agreements at Norske Skog Skogn AS. Saugbrugs Bioenergi AS, a
wholly owned subsidiary of Norske Skog Saugbrugs AS, has pledged certain
parts of its property and assets in favour of the lenders under a credit facility
financing its biogas facility. Norske Skog Golbey SAS has pledged certain
parts of its property and assets and Norske Skog ASA has pledged shares in
Norske Skog Golbey SAS in favour of the lenders under the packaging
conversion facilities. Norske Skog Bruck GmbH has pledged certain parts of
its property and assets in favour of the lenders under the incineration boiler
facility and the packaging conversion facilities.
Norske Skog issued a NOK 1
600 million senior unsecured bond in June 2024
to refinance its existing EUR 150 million senior secured bond. The bond matures
in June 2029 and has an interest rate of NIBOR (zero floor) + 4.5% with quarterly
interest payments. On 31 December 2025, Norske Skog had an issued and
outstanding amount of NOK 1
400 million under the bond agreement.
The average interest rate on 31 December 2025 was 5.8% (6.2%)
.
CONSOLIDATED FINANCIAL STATEMENTS
Annual report 2025
Norske Skog
173
I
I
SCHEDULED REPAYMENTS OF THE GROUP’S FINANCIAL | ||||
DEBT AND INTEREST AT 31.12.2025 | INTEREST | OTHER LOANS 1) | BONDS | TOTAL |
2026 | 292 | 942 | 0 | 1 234 |
2027 | 242 | 713 | 0 | 954 |
2028 | 204 | 1 135 | 0 | 1 338 |
2029 | 97 | 334 | 1 400 | 1 832 |
2030 | 25 | 331 | 0 | 356 |
2031 | 13 | 308 | 0 | 321 |
2032 | 5 | 71 | 0 | 76 |
2033 -> | 1 | 17 | 0 | 18 |
Total | 878 | 3 851 | 1 400 | 6 129 |
SCHEDULED REPAYMENTS OF THE GROUP’S FINANCIAL | ||||
DEBT AND INTEREST AT 31.12.2024 | INTEREST | OTHER LOANS 1) | BONDS | TOTAL |
2025 | 322 | 749 | 0 | 1 071 |
2026 | 279 | 616 | 0 | 895 |
2027 | 242 | 958 | 0 | 1 200 |
2028 | 189 | 638 | 0 | 827 |
2029 | 100 | 289 | 1 400 | 1 789 |
2030 | 22 | 282 | 0 | 304 |
2031 | 7 | 243 | 0 | 250 |
2032 -> | 0 | 4 | 0 | 4 |
Total | 1 161 | 3 779 | 1 400 | 6 340 |
1)
Including full instalments for the EUR 54 million credit facility
The debt amounts set out above may differ from the carrying value in the
balance sheet due to the amortised cost principle and exclusion of debt items
related to leases. On 31 December 2025, the financial statements included
amortised cost in an amount of NOK 20 million (NOK 24 million), and the
amount of interest-bearing debt related to leases was NOK 146 million
(NOK 92 million). See Note 19.
Trade payables amounted to NOK 1
527 million on 31 December 2025
(NOK 1
282 million).
Drawn amounts from factoring arrangements is classified as interest-bearing
current liabilities. This amounts to NOK 0 million (NOK 27 million) in scheduled
repayments in 2026. The financed amount represents a group of individual
loans, which are settled individually at maturity of the trade receivable. New
loans are initiated on a consecutive basis based on new trade receivable
included under the factoring agreement. The liability is in its nature current
and Norske Skog does not have an unconditional right to defer settlement
beyond twelve months. The liabilities are liabilities that are settled through its
normal operating cycle. The corresponding trade receivable is derecognised
when the customer pays it.
On 31 December 2025, Norske Skog ASA and its subsidiaries had issued
bank guarantees on its behalf in an amount of NOK 82 million (NOK 282 million).
Norske Skog Skogn AS and Norske Skog Saugbrugs AS have pledged certain
parts of its assets and machinery, in an amount of up to NOK 200 million, to
its energy suppliers under long term energy supply agreements. The security
has priority behind the NOK 500 million loan at Norske Skog Skogn AS.
CONSOLIDATED FINANCIAL STATEMENTS
Norske Skog
Annual report 2025
174
I
I
INTEREST-BEARING NON-CURRENT LIABILITIES |
NOTE |
31.12.2025 |
31.12.2024 |
Bond (amortised cost) |
1 380 |
1 376 |
|
Debt to financial institutions |
2 908 |
3 029 |
|
Leasing obligations |
19 |
115 |
70 |
Total |
22 |
4 403 |
4 475 |
INTEREST-BEARING CURRENT LIABILITIES |
NOTE |
31.12.2025 |
31.12.2024 |
Debt to financial institutions and bond (amortised cost) |
943 |
749 |
|
Leasing obligations related to right-of-use assets |
19 |
31 |
22 |
Total |
22 |
974 |
771 |
RECONCILIATION OF LIABILITIES ARISING FROM FINANCING ACTIVITIES |
2025 |
2024 |
Balance 1 January |
5 246 |
5 053 |
New loans raised |
528 |
1 981 |
Repayments |
-501 |
-2 086 |
New leasing debt |
83 |
107 |
Loss early repayment of bond and amortisation of transaction costs debt issuance |
6 |
49 |
Liabilities relating to assets classified as held for sale |
0 |
-58 |
Currency translation differences |
15 |
199 |
Balance 31 December |
5 377 |
5 246 |
Current |
974 |
771 |
Non-current |
4 403 |
4 475 |
30.
Trade and other payables, other current and non-current liabilities
Trade payables are obligations to pay for goods or services that have been
acquired in the ordinary course of business from suppliers. Trade payables are
2025 |
2024 |
|
Trade and other payables |
||
Trade Payables |
1 527 |
1 282 |
Accrued labour cost and taxes |
307 |
331 |
Accrued expenses |
505 |
485 |
Other interest-free liabilities |
24 |
20 |
Total |
2 363 |
2 118 |
Other current liabilities |
||
Restructuring provision |
4 |
7 |
Accrued financial expenses |
17 |
4 |
Derivatives |
21 |
87 |
Commodity contracts |
7 |
105 |
Other current liabilities |
191 |
15 |
Total |
254 |
218 |
Other non-current liabilities |
||
Derivatives |
79 |
111 |
Commodity contracts |
0 |
93 |
Environmental provision |
33 |
34 |
Deferred recognition of government grants |
375 |
287 |
Total |
488 |
525 |
CONSOLIDATED FINANCIAL STATEMENTS
Annual report 2025
Norske Skog
175
I
I
Related parties
Investor AS and subsidiaries Drangsland Kapital AS and Byggma ASA are
related parties to Norske Skog through the ownership in Norske Skog ASA
and the CEO Geir Drangsland being the ultimate owner for these companies.
Balances and transactions between the group and subsidiaries listed in Note 20
have been eliminated on consolidation and are not disclosed in this note.
Remuneration for corporate management is presented in Note 10. Remuneration
for leading personnel is presented in the remuneration report available at
www.norskeskog.com.
Any transactions with related parties are conducted on normal commercial
Events after the balance sheet date
There have been no events after the balance sheet date with significant
impact on the financial statements for 2025.
On 27 February 2026, Norske Skog Saugbrugs AS entered into an agreement
with Norsk Nukleær Dekommisjonering (NND), a Norwegian government
agency, for the sale of certain properties at the Saugbrugs industrial site in
Halden. The properties will be used by NND for the decommissioning of the
Halden research reactor, with handover expected in the second half of 2028,
during which period Saugbrugs will lease the properties and has certain
related obligations. The transaction will be carried out as an asset sale, subject
to customary conditions and public approval, and is expected to generate a
total accounting gain of approximately NOK 700 million, with net cash
Photo: Carsten Dybevig
Norske Skog Saugbrugs
Photo: Stein Johnsen
Financial statements
Norske Skog ASA
Financial statements
Income statement
178
Statement of comprehensive income
178
Balance sheet
179
Statement of cash flows
180
Statement of changes in equity
180
Notes to the financial statements
1
General information
181
2
Accounting policies
181
3
Operating revenue by geographical market
181
4
Employee benefits and pensions
181
5
Derivatives and other fair value adjustment
182
6
Associated companies
182
7
Financial items
182
8
Income taxes
182
9
Intangible assets and property, plant and equipment
183
10
Shares in subsidiaries
184
11
Equity
185
12
Maturity of interest-bearing liabilities
186
13
Intercompany receivables and liabilities
186
14
Guarantees
187
15
Related parties
187
16
Events after the balance sheet date
187
FINANCIAL STATEMENTS NORSKE SKOG ASA
Annual report 2025
I
Norske Skog
I
177
FINANCIAL STATEMENTS NORSKE SKOG ASA
INCOME STATEMENT
NOK MILLION
NOTE
2025
2024
Total operating income
3
92
90
Employee benefit expenses
4
-50
-70
Other operating expenses
-73
-62
Restructuring expenses
0
-4
Depreciation
9
-8
-6
Derivatives and other fair value adjustment
5
-1
-8
Total operating expenses
-133
-150
Operating earnings
-41
-60
Share of profit in associated companies
6
0
-74
Financial income
7
307
1 003
Financial expense
7
-208
-982
Gains/(losses) on foreign currency
7
77
-174
Profit/(loss) before tax
135
-287
Income tax
8
2
-145
Profit/(loss) after tax
137
-432
STATEMENT OF COMPREHENSIVE INCOME
NOK MILLION
2025
2024
Profit/(loss) after tax
137
-432
Items that will not be reclassified subsequently to profit or loss
Remeasurements of post employment benefit obligations
0
0
Tax effect on remeasurements of post employment benefit obligations
0
0
Other comprehensive income
0
0
Total comprehensive income
137
-432
178
I
Norske Skog
I
Annual report 2025
FINANCIAL STATEMENTS NORSKE SKOG ASA
BALANCE SHEET
NOK MILLION
NOTE
2025
2024
Deferred tax assets
8
52
49
Intangible assets
9
13
5
Property, plant and equipment
9
22
15
Shares in subsidiaries
10
4 953
4 657
Other non-current assets
5
8
Total non-current assets
5 044
4 734
Trade and other receivables
31
78
Intercompany receivables
13
1 430
811
Other current assets
7
1
Cash and cash equivalents
864
812
Total current assets
2 333
1 701
Total assets
7 377
6 435
Paid-in-equity
4 001
4 001
Retained earnings and other reserves
198
61
Total equity
11
4 199
4 062
Employee benefit obligations
4
6
4
Interest-bearing non-current liabilities
12
1 393
1 381
Total non-current liabilities
1 399
1 385
Trade payables
7
4
Intercompany liabilities
13
1 752
896
Other current liabilities
19
88
Total current liabilities
1 779
988
Total liabilities
3 178
2 373
Total equity and liabilities
7 377
6 435
SKØYEN, 25 MARCH
2026
THE BOARD OF DIRECTORS OF NORSKE SKOG ASA
Arvid Grundekjøn
Chair
Trude Ulven
Board member
Eva Karlson Berg
Board member
Geir Drangsland
CEO
Terje Sagbakken
Board member
Annual report 2025
I
Norske Skog
I
179
FINANCIAL STATEMENTS NORSKE SKOG ASA
STATEMENT OF CASH FLOWS
NOK MILLION
NOTE
2025
2024
Cash generated from operations
138
81
Cash used in operations
-123
-181
Cash flow from currency hedges and financial items
22
-11
Interest payments received
82
128
Interest payments made
-166
-216
Tax paid
8
0
-1
Net cash flow from operating activities
-46
-200
Purchases equipment and intangible assets
9
-12
-10
Contributions of equity to subsidiary
10
-296
-118
Change in cash pool receivables
-655
-48
Net cash flow from investing activities
-963
-175
New loans raised
0
1 377
Repayments of loans
-3
-1 593
Change in cash pool payable
1 080
-264
Net cash flow from financing activities
1 077
-481
Foreign currency effects on cash and cash equivalents
-16
27
Total change in cash and cash equivalents
52
-830
Cash and cash equivalents 1 January
812
1 642
Cash and cash equivalents 31 December
1)
864
812
1)
Whereof restricted cash
153
147
STATEMENT OF CHANGES IN EQUITY
NOK MILLION
NOTE
SHARE CAPITAL
SHARE PREMIUM
OTHER PAID-IN
CAPITAL
RETAINED
EARNINGS
TOTAL EQUITY
Equity 1 January 2024
339
1 412
2 249
493
4 494
Profit after tax
0
0
0
-432
-432
Other comprehensive income
0
0
0
0
0
Equity 31 December 2024
339
1 412
2 249
61
4 062
Profit after tax
0
0
0
137
137
Other comprehensive income
0
0
0
0
0
Equity 31 December 2025
11
339
1 412
2 249
198
4 199
180
I
Norske Skog
I
Annual report 2025
FINANCIAL STATEMENTS NORSKE SKOG ASA
Notes to the financial statements
1.
General information
All amounts are presented in NOK million unless otherwise stated. There may
be some small differences in the summation of columns due to rounding.
The financial statements were authorised for issue by the board of directors
on 25 March 2026.
2.
Accounting policies
The financial statements for Norske Skog ASA have been prepared and
presented in accordance with simplified IFRS pursuant to section 3-9 of the
Norwegian Accounting Act.
3.
Operating revenue by geographical market
Accounting policies
Revenue from contracts with customers is recognised when control of the
goods or services are transferred to the customer at an amount that reflects
the consideration to which the company expects to be entitled in exchange
for those goods or services.
The company’s operating revenue consists mainly of the sale of services to
other entities in the group. Operating revenue arising from sales of internal
services to other entities in the group amounted to NOK 89 million in 2025
(NOK 89 million).
OPERATING REVENUE BY GEOGRAPHICAL MARKET
2025
2024
Norway
37
37
Europe excluding Norway
51
45
Australasia
3
7
Total
92
90
4.
Employee benefits and pensions
EMPLOYEE BENEFIT EXPENSES
2025
2024
Salaries including holiday pay
36
36
Social security contributions
6
10
Pension expenses
5
21
Other employee benefit expenses
3
3
Total
50
70
The company is required by law to have a pension scheme for all employees.
The company’s pension plan is compliant with the requirements in the
Norwegian Act relating to mandatory occupational pension. See also Note 27
Pension and other employee obligations in the consolidated financial
statements for further information.
High expense for defined benefit pension in 2024 is due to corrections of prior
periods.
NUMBER OF EMPLOYEES
31.12.2025
31.12.2024
Employees
20
23
PENSION EXPENSES
2025
2024
Pension expenses, defined benefit plan
2
18
Pension expenses, defined contribution plan
2
2
Multiemployer plans
1
0
Total pension expenses
5
21
Net interest expenses
0
0
PENSION ASSETS/LIABILITIES IN
THE BALANCE SHEET
31.12.2025
31.12.2024
Net pension assets/(liabilities)
in the balance sheet
-6
-4
PENSION OBLIGATION IN THE BALANCE SHEET
31.12.2025
31.12.2024
Projected benefit obligation
-1
-8
Plan assets at fair value
1
8
Net pension obligations in the balance sheet
0
0
SENSITIVITY ANALYSIS AT 31 DECEMBER 2025
Increase
Decrease
Discount rate -0.5%
0
0
Salary adjustment -0.5%
0
0
Annual report 2025
I
Norske Skog
I
181
FINANCIAL STATEMENTS NORSKE SKOG ASA
5.
Derivatives and other fair value adjustment
Accounting policies
Financial energy derivative contracts are accounted for at fair value using
quoted prices. Realised gains/(losses) and value changes in contracts are
presented in the income statement under derivatives and other fair value
adjustment.
The energy trading is to financial hedge the groups energy costs.
The company had no such contracts at year end.
DERIVATIVES AND OTHER FAIR VALUE ADJUSTMENT
2025
2024
Change in value in financial energy contracts
1
-1
Realised gains/(losses) on energy contracts
-2
-7
Total
-1
-8
6.
Associated companies
Accounting policies
Investment in associated companies are accounted for in accordance with
the equity method. The investment is initially recognised at cost, and the
carrying value is increased or decreased to recognise the company’s share of
the profit or loss of the investee after the date of acquisition.
Norske Skog holds a 26% share of Circa Group AS that was suspended from
trading on Euronext Growth following its filed petition for bankruptcy on
7 October 2024. An impairment was made to the shares in 2024 to the reflect
the market value of nil. Total loss in 2024 amounted to NOK 74 million.
7.
Financial items
Accounting policies
Dividend income is recognised when the right to receive payment is
established, which is generally when the shareholders approve the dividend.
Interest income is recognised using the effective interest method.
Borrowings are recognised initially at fair value, net of transaction costs
incurred. Borrowings are subsequently carried at amortised cost, using the
effective interest method.
FINANCIAL ITEMS
2025
2024
Financial income
Dividends received
225
875
Interest income
32
73
Interest income from group companies
50
55
Total
307
1 003
Financial expenses
Interest expense
-136
-139
Interest expense group companies
-37
-70
Other financial expenses
-27
-149
Impairment of investments in subsidiaries
-9
-624
Total
-208
-982
Gains/(losses) on foreign currency
77
-174
Total financial items
176
-154
In 2025 dividends NOK 225 million was received from Norske Skog Skogn AS.
NOK 373 million and NOK 502 million was received in dividends for 2024 from
Norske Skog Saugbrugs AS and Norske Skog Skogn AS, respectively.
Norske Skog Industries Australia Ltd. was divested 1 April 2025. The proceeds
from the divestment were applied to repay outstanding balances. The
transaction costs of NOK 9 million is reported as impairments in subsidiaries
in 2025.
NOK 24 million of other financial expenses consists of provision for bad
debt regarding the divested company Norske Skog Industries Australia Ltd.
In 2024 other financial expenses includes provision for bad debt regarding the
subsidiary Norske Skog Industries Australia Ltd. of NOK 86 million and cost
regarding refinancing of the EUR 150 million senior bond of NOK 43 million.
8.
Income taxes
Accounting policies
Income taxes include current tax based on taxable profit and changes in
deferred tax. Deferred tax is provided in full, using the liability method, on
temporary differences arising between the carrying amount of assets and
liabilities.
Deferred tax assets are recognised to the extent it is probable that future
taxable profit will be available to utilise it.
TAX EXPENSE
2025
2024
Current tax expense
0
-1
Change in deferred tax
2
-143
Total
2
-145
INCOME TAX RECONCILIATION
2025
2024
Profit/(loss) before income taxes
135
-287
Computed tax at nominal tax rate 22%
-30
63
Non taxable income/non deductible expenses
-19
-17
Dividend
-2
0
Impairment of investments in subsidiaries
0
-138
Other items
0
-16
Deferred tax assets not recognised
54
-35
Withholding tax
0
-1
Total tax (expense)/income
2
-145
TEMPORARY DIFFERENCES AND TAX LOSSES
- DETAILS
31.12.2025 31.12.2024
Other non-current items
1
2
Pensions
6
4
Current items
-4
-4
Group contribution
231
225
Tax losses to carry forward
415
590
Tax losses and other deferred tax assets not recognised
-760
-1 003
Tax credits
6
24
Interest carry forward (Interest limitation rules)
334
315
Financial instruments
7
71
Basis for deferred tax
236
225
DEFERRED TAX
31.12.2025 31.12.2024
Net deferred tax asset/(liability)
52
49
The value of tax losses and other tax credits are partly written down, subsequently the tax losses are lower than
total tax benefits not recognised.
182
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Norske Skog
I
Annual report 2025
FINANCIAL STATEMENTS NORSKE SKOG ASA
9.
Intangible assets and property, plant and equipment
Accounting policies
Intangible assets and property, plant and equipment are shown at historical
cost less subsequent depreciation and impairments. Historical cost includes
expenditure directly attributable to the acquisition of the items.
The right to use an asset is recognised in the balance sheet during the lease
term, together with the liability to make lease payments. At initial recognition
the leased asset is measured at an amount equal to the lease liability.
INTANGIBLE ASSETS
LICENCES AND PATENTS
Acquisition cost 1 January 2024
36
Addition
2
Acquisition cost 31 December 2024
38
Accumulated depreciation and impairments 1 January 2024
30
Depreciation
3
Accumulated depreciation and impairments 31 December 2024
33
Carrying value 31 December 2024
5
Acquisition cost 1 January 2025
38
Addition
12
Acquisition cost 31 December 2025
50
Accumulated depreciation and impairments 1 January 2025
33
Depreciation
5
Accumulated depreciation and impairments 31 December 2025
38
Carrying value 31 December 2025
13
Licenses, patents and other intangible assets are depreciated on a straight-
line basis over a period from three to five years.
Other intangible assets consist mainly of capitalised development costs
relating to customising of software.
PROPERTY, PLANT AND EQUIPMENT
FIXTURES AND
FITTINGS
PLANT UNDER
CONSTRUCTION
RIGHT-OF-USE
ASSETS
TOTAL
Acquisition cost 1 January 2024
1
2
14
17
Addition
0
7
6
14
Disposals
0
0
-14
-14
Acquisition cost 31 December 2024
1
9
6
17
Accumulated depreciation and impairments 1 January 2024
1
0
12
14
Depreciation
0
0
3
3
Disposals
0
0
-14
-14
Accumulated depreciation and impairments 31 December 2024
1
0
1
3
Carrying value 31 December 2024
0
9
5
15
Acquisition cost 1 January 2025
1
9
6
17
Addition
0
1
10
10
Acquisition cost 31 December 2025
1
10
16
28
Accumulated depreciation and impairments 1 January 2025
1
0
1
3
Depreciation
0
0
3
3
Accumulated depreciation and impairments 31 December 2025
1
0
4
6
Carrying value 31 December 2025
0
10
12
22
Fixtures and fittings and right of use assets are depreciated on a linear
basis over a period from three to five years.
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FINANCIAL STATEMENTS NORSKE SKOG ASA
10.
Shares in subsidiaries
Accounting policies
Shares in subsidiaries are recognised at lower of cost and net-realisable value.
Investments in subsidiaries are tested for impairment in accordance with IAS 36
Impairment of assets. Shares are reviewed for impairment if changes in
circumstances indicate that the carrying amount is higher than the fair value of
the investment. Impairment loss is reversed if the impairment situation no
longer exists. For impairment testing purposes, investments in subsidiaries are
grouped in the same manner as the cash-generating units for the group. The
carrying amount of investments in subsidiaries within each cash-generating
unit is measured against the recoverable amount of investments in subsidiaries
within this cash-generating unit.
SHARE IN SUBSIDIARIES
CURRENCY
SHARE CAPITAL
(IN 1
000)
OWNERSHIP%
CARRYING VALUE
(IN NOK MILLION)
Norske Skog Bruck GmbH, Bruck, Austria
EUR
67 000
99.9%
1 058
Norske Skog Golbey SAS, Golbey, France
EUR
62 365
100.0%
1 953
Norske Skog Skogn AS, Levanger, Norway
NOK
115 230
100.0%
615
Norske Skog Saugbrugs AS, Halden, Norway
NOK
115 230
100.0%
1 301
Nornews AS, Oslo, Norway
NOK
300
100.0%
26
Cebina AS, Oslo, Norway
NOK
30
100.0%
0
Cebico AS, Oslo, Norway
NOK
30
100.0%
0
Total
4 953
The investment in subsidiaries have increased from NOK 4
657 million to
NOK 4
953 million during 2025. The increase is due to new paid in capital
of EUR 20 million in Norske Skog Golbey SAS and EUR 5 million in
Norske Skog Bruck GmbH.
See Note 7. For further information with respect to impairment testing see
Note 18 Property, plant and equipment in the consolidated financial
statements.
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FINANCIAL STATEMENTS NORSKE SKOG ASA
11.
Equity
Accounting policies
Ordinary shares are classified as equity. Incremental costs directly attributable
to the issue of new shares are shown in equity as a deduction, net of tax, from
the proceeds.
The share capital of Norske Skog ASA on 31 December 2025 was NOK 339 million
(NOK 339 million) and consisted of 84
838 235
shares each with a nominal
value of NOK 4.00
. All shares have been created under the Norwegian Public
Limited Companies Act and are validly issued and fully paid.
Byggma ASA/Drangsland Kapital AS/Investor AS is the largest shareholder
with a combined ownership of 26.84% on 31 December 2025
.
The 20 largest shareholders at 31 December 2025 are as follows:
20 LARGEST SHAREHOLDERS AT 31.12.2025
NUMBER OF
SHARES
OWNERSHIP%
Byggma ASA
17 430 431
20.55
UBS Europe SE
8 922 000
10.52
Drangsland Kapital AS
5 316 148
6.27
Verdipapirfondet Fondsfinans Norge
3 100 000
3.65
Intertrade Shipping AS
3 000 000
3.54
Voldstad Eiendom AS
2 707 476
3.19
The Bank Of New York Mellon SA/NV
1 755 157
2.07
State Street Bank And Trust Comp
1 459 613
1.72
Nordnet Bank AB
1 336 456
1.58
Goldman Sachs & Co. LLC
1 049 885
1.24
Inak 3 AS
700 000
0.83
Pershing Securities Limited
688 585
0.81
Beck Asset Management AS
650 000
0.77
J.P. Morgan SE
566 669
0.67
SES AS
500 000
0.59
Oaktiva AS
445 000
0.52
Bjø Holding AS
443 873
0.52
Gåsø Næringsutvikling AS
425 000
0.50
SB1 Markets AS
390 000
0.46
Arun Vohra
383 154
0.45
Other shareholders
33 568 788
39.57
Total
84 838 235
100.00
The shareholder list is extracted from VPS. Whilst every reasonable effort is
made to verify all data VPS cannot guarantee the accuracy of the analysis.
SHARES OWNED BY MEMBERS OF THE BOARD OF DIRECTORS AT 31 DECEMBER 2025
NUMBER OF SHARES
Arvid Grundekjøn
101 617
Terje Sagbakken
15 900
Trude Ulven
0
Christoffer Bull
0
Eva Karlsson Berg
0
SHARES OWNED BY MEMBERS OF CORPORATE MANAGEMENT AT 31 DECEMBER 2025
NUMBER OF SHARES
Geir Drangsland
1)
22 774 079
Tord Steinset Torvund
11 000
Robert Wood
5 263
Even Lund
25 000
Einar Blaauw
0
1)
Geir Drangsland is the controlling shareholder of Investor AS. The company’s largest shareholders, Byggma ASA and Drangsland Kapital AS are under common control of Investor AS and the three companies holds
22 774 079
shares combined. See also Note 31 Related parties in the consolidated financial statements.
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FINANCIAL STATEMENTS NORSKE SKOG ASA
12.
Maturity of interest-bearing liabilities
MATURITY OF THE COMPANY’S DEBT AT 31.12.2025
INTEREST
BOND
TOTAL
2026
122
0
122
2027
122
0
122
2028
122
0
122
2029
61
1 400
1 461
Total
426
1 400
1 826
MATURITY OF THE COMPANY'S DEBT AT 31.12.2024
INTEREST
BOND
TOTAL
2025
130
0
130
2026
130
0
130
2027
130
0
130
2028
131
0
131
2029
65
1 400
1 465
Total
587
1 400
1 987
The table above shows contractual scheduled repayments.
During 2024 the EUR 150 million bond was refinanced with a NIBOR+450 bps
NOK 1 600 million senior unsecured bond. On 31 December 2025 the
outstanding amount under the NOK 1 600 million senior unsecured bond, was
NOK 1 400 million.
For more information, see Note 29 Interest-bearing liabilities in the consolidated
financial statements.
13.
Intercompany receivables and liabilities
31.12.2025
31.12.2024
Current intercompany receivables
Nornews AS
1
2
Norske Skog Bruck GmbH
901
608
Norske Skog Golbey SAS
527
0
Saugbrugs Bioenergi AS
0
32
Norske Skog (Australasia) Pty Ltd
0
168
Total
1 430
811
Current intercompany liabilities
GV Bois SAS
0
1
Norske Skog (Österreich) GmbH
26
23
Norske Skog (Schweiz) AG
0
1
Norske Skog Deutschland GmbH
78
71
Norske Skog France SARL
65
54
Norske Skog Golbey SAS
0
186
Norske Skog Saugbrugs AS
739
160
Norske Skog Skogn AS
794
371
Norske Skog (UK) Ltd.
32
30
Saugbrugs Bioenergi AS
19
0
Total
1 752
896
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FINANCIAL STATEMENTS NORSKE SKOG ASA
14.
Guarantees
The company has issued bank guarantees in an amount of NOK 4 million at
31 December 2025 (NOK 4 million). In addition, the company has issued
corporate guarantees with an outstanding amount of NOK 2
999 million at
31 December 2025 (NOK 3
129 million) on behalf of Norske Skog Saugbrugs AS,
Saugbrugs Bioenergi AS, Norske Skog Skogn AS, Norske Skog Bruck GmbH
and Norske Skog Golbey SAS.
15.
Related parties
A description of transactions with related parties is given in Note 31 Related
parties in the consolidated financial statements.
16.
Events after the balance sheet date
There have been no events after the balance sheet date with significant
impact on the financial statements for 2025.
See Note 32 Events after the balance sheet date in the consolidated financial
statements for other post balance sheet events.
Statement from the
board of directors and the
CEO
IN COMPLIANCE WITH SECTION 5-5 IN THE SECURITIES TRADING ACT
We declare that to the best of our knowledge, the financial statements for the
period 1 January to 31 December 2025 have been prepared in accordance
with applicable accounting standards, and that the information in the financial
statements give a true and fair view of the company’s and the group’s assets,
liabilities, financial position and result as a whole.
We confirm that the board of directors’ report provides a true and fair view of
the development and performance of the business and the position of the
company and the group, as well as a description of the key risks and
uncertainty factors which the company and the group is facing.
We further confirm that the board of directors’ report has been prepared in
accordance with and meet the requirements of the European sustainability
reporting standards (ESRS), the Norwegian accounting act and article 8 of
the taxonomy regulation.
SKØYEN, 25 MARCH 2026
THE BOARD OF DIRECTORS OF NORSKE SKOG ASA
Arvid Grundekjøn
Chair
Trude Ulven
Board member
Eva Karlson Berg
Board member
Geir Drangsland
CEO
Terje Sagbakken
Board member
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PricewaterhouseCoopers AS, org.no.: 987 009 713 MVA, Statsautoriserte revisorer, medlemmer av Den norske Revisorforening og autorisert regnskapsførerselskap
Advokatfirmaet PricewaterhouseCoopers AS,
Org.no.: 988 371 084 MVA, Medlemmer av Advokatforeningen.
PwC Tax Services AS, Org.no.: 962 066 321 MVA, Autorisert regnskapsførerselskap, Medlem av Regnskap Norge
Dronning Eufemias gate 71, Postboks 748 Sentrum, NO-0106 Oslo, T: 02316 (+47 952 60 000) www.pwc.no
To the General Meeting of Norske Skog ASA
Independent Sustainability Auditor’s Limited Assurance Report
Limited Assurance Conclusion
We have conducted a limited assurance engagement on the consolidated sustainability statement of Norske Skog ASA
(the «Company») included in Sustainability statement of the Board of Directors’ report (the «Sustainability
Statement»), as at 31 December 2025 and for the year then ended.
Based on the procedures we have performed and the evidence we have obtained, nothing has come to our attention that
causes us to believe that the Sustainability Statement is not prepared, in all material respects, in accordance with the
Norwegian Accounting Act section 2-3, including:
•
compliance with the European Sustainability Reporting Standards (ESRS), including that the process carried out
by the Company to identify the information reported in the Sustainability Statement (the «Process») is in
accordance with the description set out in section “4. Impacts, risks and opportunity management” within the
General Disclosures chapter; and
•
compliance of the disclosures in the subsection "EU taxonomy" in the Climate change section of the
Sustainability Statement with Article 8 of EU Regulation 2020/852 (the «Taxonomy Regulation»).
Basis for Conclusion
We conducted our limited assurance engagement in accordance with International Standard on Assurance Engagements
(ISAE) 3000 (Revised), Assurance engagements other than audits or reviews of historical financial information («ISAE
3000 (Revised)»), issued by the International Auditing and Assurance Standards Board.
We believe that the evidence we have obtained is sufficient and appropriate to provide a basis for our conclusion. Our
responsibilities under this standard are further described in the
Sustainability Auditor’s Responsibilities
section of our
report.
Our Independence and Quality Management
We have complied with the independence and other ethical requirements as required by relevant laws and regulations in
Norway and the International Code of Ethics for Professional Accountants (including International Independence
Standards) issued by the International Ethics Standards Board for Accountants (IESBA Code), which is founded on
fundamental principles of integrity, objectivity, professional competence and due care, confidentiality and professional
behaviour.
The firm applies International Standard on Quality Management 1, which requires the firm to design, implement and
operate a system of quality management including policies or procedures regarding compliance with ethical
requirements, professional standards and applicable legal and regulatory requirements.
Other Matter
The comparative information for 2023, included in the Sustainability Statement, was not subject to an assurance
engagement. Our conclusion is not modified in respect of this matter.
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SUSTAINABILITY REPORT
/
INDEPENDENT AUDITOR’S ASSURANCE REPORT
2 / 4
Responsibilities for the Sustainability Statement
The Board of Directors and the Managing Director (Management) are responsible for designing and implementing a
process to identify the information reported in the Sustainability Statement in accordance with the ESRS and for
disclosing this Process in section “4. Impacts, risks and opportunity management” within the General Disclosures chapter
of the Sustainability Statement. This responsibility includes:
•
understanding the context in which the Group's activities and business relationships take place and developing
an understanding of its affected stakeholders;
•
the identification of the actual and potential impacts (both negative and positive) related to sustainability matters,
as well as risks and opportunities that affect, or could reasonably be expected to affect, the Group’s financial
position, financial performance, cash flows, access to finance or cost of capital over the short-, medium-, or long-
term;
•
the assessment of the materiality of the identified impacts, risks and opportunities related to sustainability
matters by selecting and applying appropriate thresholds; and
•
making assumptions that are reasonable in the circumstances.
Management is further responsible for the preparation of the Sustainability Statement, in accordance with the Norwegian
Accounting Act section 2-3, including:
•
compliance with the ESRS;
•
preparing the disclosures in the subsection "EU taxonomy" in the Climate change section of the Sustainability
Statement, in compliance with the Taxonomy Regulation;
•
designing, implementing and maintaining such internal control that Management determines is necessary to
enable the preparation of the Sustainability Statement that is free from material misstatement, whether due to
fraud or error; and
•
the selection and application of appropriate sustainability reporting methods and making assumptions and
estimates that are reasonable in the circumstances.
Inherent limitations in preparing the Sustainability Statement
In reporting forward-looking information in accordance with ESRS, Management is required to prepare the forward-
looking information on the basis of disclosed assumptions about events that may occur in the future and possible future
actions by the Group. Actual outcomes are likely to be different since anticipated events frequently do not occur as
expected.
Sustainability Auditor’s Responsibilities
Our responsibility is to plan and perform the assurance engagement to obtain limited assurance about whether the
Sustainability Statement is free from material misstatement, whether due to fraud or error, and to issue a limited
assurance report that includes our conclusion. Misstatements can arise from fraud or error and are considered material if,
individually or in the aggregate, they could reasonably be expected to influence decisions of users taken on the basis of
the Sustainability Statement as a whole.
As part of a limited assurance engagement in accordance with ISAE 3000 (Revised) we exercise professional judgement
and maintain professional scepticism throughout the engagement.
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/
SUSTAINABILITY REPORT
3 / 4
Our responsibilities in respect of the Sustainability Statement, in relation to the Process, include:
•
Obtaining an understanding of the Process, but not for the purpose of providing a conclusion on the
effectiveness of the Process, including the outcome of the Process;
•
Considering whether the information identified addresses the applicable disclosure requirements of the ESRS;
and
•
Designing and performing procedures to evaluate whether the Process is consistent with the Company’s
description of its Process set out in section “4. Impacts, risks and opportunity management” within the General
Disclosures chapter.
Our other responsibilities in respect of the Sustainability Statement include:
•
Identifying where material misstatements are likely to arise, whether due to fraud or error; and
•
Designing and performing procedures responsive to where material misstatements are likely to arise in the
Sustainability Statement. The risk of not detecting a material misstatement resulting from fraud is higher than for
one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the
override of internal control.
Summary of the Work Performed
A limited assurance engagement involves performing procedures to obtain evidence about the Sustainability Statement.
The procedures in a limited assurance engagement vary in nature and timing from, and are less in extent than for, a
reasonable assurance engagement. Consequently, the level of assurance obtained in a limited assurance engagement is
substantially lower than the assurance that would have been obtained had a reasonable assurance engagement been
performed.
The nature, timing and extent of procedures selected depend on professional judgement, including the identification of
disclosures where material misstatements are likely to arise in the Sustainability Statement, whether due to fraud or error.
In conducting our limited assurance engagement, with respect to the Process, we:
•
Obtained an understanding of the Process by:
o
performing inquiries to understand the sources of the information used by management (e.g.,
stakeholder engagement, business plans and strategy documents); and
o
reviewing the Company’s internal documentation of its Process; and
•
Evaluated whether the evidence obtained from our procedures with respect to the Process implemented by the
Company was consistent with the description of the Process set out in section “4. Impacts, risks and opportunity
management” within the General Disclosures chapter.
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In conducting our limited assurance engagement, with respect to the Sustainability Statement, we:
•
Obtained an understanding of the Group’s reporting processes relevant to the preparation of its Sustainability
Statement by:
o
Obtaining an understanding of the Group’s control environment, processes, control activities and
information system relevant to the preparation of the Sustainability Statement, but not for the purpose of
providing a conclusion on the effectiveness of the Group’s internal control; and
o
Obtaining an understanding of the Group’s risk assessment process;
•
Evaluated whether the information identified by the Process is included in the Sustainability Statement;
•
Evaluated whether the structure and the presentation of the Sustainability Statement is in accordance with the
ESRS;
•
Performed inquiries of relevant personnel and analytical procedures on selected information in the Sustainability
Statement;
•
Performed substantive assurance procedures on selected information in the Sustainability Statement;
•
Where applicable, compared disclosures in the Sustainability Statement with the corresponding disclosures in
the financial statements and other sections of the Board of Directors’ report;
•
Evaluated the methods, assumptions and data for developing estimates and forward-looking information;
•
Obtained an understanding of the Company’s process to identify taxonomy-eligible and taxonomy-aligned
economic activities and the corresponding disclosures in the Sustainability Statement;
•
Evaluated whether information about the identified taxonomy-eligible and taxonomy-aligned economic activities
is included in the Sustainability Statement; and
•
Performed inquiries of relevant personnel and substantive procedures on selected taxonomy disclosures
included in the Sustainability Statement.
Oslo, 25 March 2026
PricewaterhouseCoopers AS
Herman Skibrek
State Authorised Public Accountant – Sustainability Auditor
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INDEPENDENT AUDITOR’S REPORT
PricewaterhouseCoopers AS, org.no.: 987 009 713 MVA, Statsautoriserte revisorer, medlemmer av Den norske Revisorforening og autorisert regnskapsførerselskap
Advokatfirmaet PricewaterhouseCoopers AS,
Org.no.: 988 371 084 MVA, Medlemmer av Advokatforeningen.
PwC Tax Services AS, Org.no.: 962 066 321 MVA, Autorisert regnskapsførerselskap, Medlem av Regnskap Norge
Dronning Eufemias gate 71, Postboks 748 Sentrum, NO-0106 Oslo, T: 02316 (+47 952 60 000) www.pwc.no
To the General Meeting of Norske Skog ASA
Independent Auditor’s Report
Report on the Audit of the Financial Statements
Opinion
We have audited the financial statements of Norske Skog ASA, which comprise:
•
the financial statements of the parent company Norske Skog ASA (the Company), which comprise the balance
sheet as at 31 December 2025, the income statement, statement of comprehensive income, statement of
changes in equity and statement of cash flows for the year then ended, and notes to the financial statements,
including a summary of significant accounting policies, and
•
the consolidated financial statements of Norske Skog ASA and its subsidiaries (the Group), which comprise the
balance sheet as at 31 December 2025, the income statement, statement of comprehensive income, statement
of changes in group equity and statement of cash flows for the year then ended, and notes to the financial
statements, including material accounting policy information.
In our opinion
•
the financial statements comply with applicable statutory requirements,
•
the financial statements give a true and fair view of the financial position of the Company as at 31 December
2025, and its financial performance and its cash flows for the year then ended in accordance with simplified
application of international accounting standards according to section 3-9 of the Norwegian Accounting Act, and
•
the consolidated financial statements give a true and fair view of the financial position of the Group as at 31
December 2025, and its financial performance and its cash flows for the year then ended in accordance with
IFRS Accounting Standards as adopted by the EU.
Our opinion is consistent with our additional report to the Audit Committee.
Basis for Opinion
We conducted our audit in accordance with International Standards on Auditing (ISAs). Our responsibilities under those
standards are further described in the
Auditor’s Responsibilities for the Audit of the Financial Statements
section of our
report. We are independent of the Company and the Group as required by relevant laws and regulations in Norway and
the International Ethics Standards Board for Accountants’ International Code of Ethics for Professional Accountants
(including International Independence Standards) (IESBA Code) as applicable to audits of financial statements of public
interest entities, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe
that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
To the best of our knowledge and belief, no prohibited non-audit services referred to in the Audit Regulation (537/2014)
Article 5.1 have been provided.
We have been the auditor of Norske Skog ASA for 4 years from the election by the general meeting of the shareholders
on 21 April 2022 for the accounting year 2022.
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Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the
financial statements of the current period. These matters were addressed in the context of our audit of the financial
statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.
The investments in the converted newsprint machine PM1 in Golbey were competed for containerboard production during
the year. Consequently,
Decomposition and capitalisation of cost for new completed assets
was identified as new Key
audit matter this year. Further,
Valuation of Commodity Contracts to Fair Value
has the same characteristics and risks
this year as the previous year and was an area of focus also for the 2025 audit.
Key Audit Matters
How our audit addressed the Key Audit Matter
Valuation of Commodity Contracts to Fair Value
Being a paper producer with significant
electricity
consumption, the Group is exposed to
uncertainty
related to changes in electricity market
prices.
Thus, the price of electricity has a significant
impact
on the Group's results. The Group price-
protects
part of its future electric power consumption
using
physical energy commodity contracts. Policies
are
established to manage the risks arising from
these
contracts.
Commodity contracts classified as financial
instruments
within the scope of IFRS 9
–
Financial instruments,
are
related
to energy contracts in Norway. To calculate the
fair
value of the commodity contracts, management uses
a complex model with several input factors.
Fair value of
commodity contracts recognised in the
balance sheet is
calculated by using quotes
from actively traded markets
when available. Otherwise,
price forecasts from
acknowledged external
sources are used.
The fair value of commodity contracts is
especially
sensitive to future changes in energy prices.
Accounting for financial instruments used to
hedge
electricity expenses is a key matter in our audit
due
to the complexity of management's calculations, and
the significant impact on the Group's results
from changes
in fair value.
Management explains the accounting of
electricity
contracts in notes 5, 12, 21, 22, 23 and 30 to
the
consolidated financial statements.
During our audit, we mapped and assessed the
design of
the Group's internal controls related to
trading, monitoring,
and accounting of electricity
commodity contracts. We
also assessed the
Group's accounting principles for
financial
instruments against requirements in the
IFRS
Accounting Standards, particularly IFRS 9.
We interviewed management to understand how
they
calculated the fair value of the commodity
contracts,
including how judgment was applied.
Further, we
evaluated the appropriateness of
management’s model
through comparison
towards models generally used for
valuation of commodity contracts and
performed a
technical recalculation of the valuation.
We tested the completeness, existence, and valuation of
the commodity contracts by obtaining
and understanding
the underlying agreements.
Further, we tested the
accuracy of the input factors
including future electricity
prices, Electricity Price
Area Differentials, discount rates,
paper prices,
pulpwood prices, and currency assumptions
by
comparing to forecasts from external sources such as
Nasdaq, Reuters, Fastmarkets Risi, Nord Pool,
Statistics
Norway, and the International Monetary
Fund.
We discussed and challenged management’s
assumptions and use of judgment by evaluating whether
the
assumptions were used neutrally and consistently in
the valuation and in comparison to valuations performed
in prior periods.
We also assessed and found that the information in the
notes was sufficient and comprehensive.
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Decomposition and capitalisation of cost for new
completed assets
The decomposition and
capitalisation of costs related to
new completed assets represent a key audit area due to
the materiality and
the level of management judgement
involved under IFRS, particularly IAS 16
-
Property, Plant
and Equipment
. According to IAS 16, costs that are
directly attributable to bringing an asset to the location
and condition necessary for it to be capable of operating
as intended by management must be
capitalised.
Determining which costs meet this criterion requires
careful assessment and management judgment.
The decomposition and
capitalization capitalisation of
costs
requires the identification and separation of different
cost components, such as acquisition costs, construction
costs, borrowing costs (in accordance with IAS 23
-
Borrowing costs
), and subsequent expenditures.
Management must then
apply judgement in order to
decide which costs qualify for
capitalisation versus those
that should be expensed immediately. Distinguishing
between
capitalisable expenditures and expenses - such
as repairs or maintenance
- is often complex, and
misclassification may materially affect the carrying
amount of assets and the related depreciation charge.
Management explains the accounting of property, plant
and equipment in note 18 to the consolidated financial
statements.
We assessed the design and operating effectiveness of
internal controls over the
capitalisation of asset costs and
the recognition of assets. We
evaluated management’s
methodology
for identifying costs that meet the IAS 16
recognition criteria. We tested the existence and accuracy
of capitalised amounts by
examining supporting
documentation such as invoices, payroll records for man
-
hours, and internally generated labo
ur costs.
For internally incurred hours related to asset preparation
and construction, we evaluated time recording systems
and controls, tested the allocation of staff hours to asset
projects, and
assessed whether only labour directly
attributable to bringing assets to their intended use was
capitali
sed.
We tested a representative sample of
capitalised external
costs to
assess their appropriateness for capitalisation
and direct relation to asset construction or purchase. For
material
cost components, we assessed whether costs
were appropriately decomposed and depreciation applied
separately over the useful life of the assets.
Further, we
tested the capitalisation of borrowing costs
under IAS 23, including the calculation of the
capitali
sation of interest and the assessment of
capitali
sation periods.
Finally, we evaluated disclosures related to
capitalised
costs in the financial statements
and found them to be
adequate
.
Other Information
The Board of Directors and the Managing Director (management) are responsible for the information in the Board of
Directors’ report and the other information accompanying the financial statements. The other information comprises
information in the annual report, but does not include the financial statements and our auditor’s report thereon. Our
opinion on the financial statements does not cover the information in the Board of Directors’ report nor the other
information accompanying the financial statements.
In connection with our audit of the financial statements, our responsibility is to read the Board of Directors’ report and the
other information accompanying the financial statements. The purpose is to consider if there is material inconsistency
between the Board of Directors’ report and the other information accompanying the financial statements and the financial
statements or our knowledge obtained in the audit, or whether the Board of Directors’ report and the other information
accompanying the financial statements otherwise appears to be materially misstated. We are required to report if there is
a material misstatement in the Board of Directors’ report or the other information accompanying the financial statements.
We have nothing to report in this regard.
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INDEPENDENT AUDITOR’S REPORT
4 / 5
Based on our knowledge obtained in the audit, it is our opinion that the Board of Directors’ report
•
is consistent with the financial statements and
•
contains the information required by applicable statutory requirements.
Our opinion on the Board of Directors' report applies correspondingly to the statement on Corporate Governance.
Our opinion on whether the Board of Directors’ report contains the information required by applicable statutory
requirements, does not cover the Sustainability Statement, on which a separate assurance report is issued.
Responsibilities of Management for the Financial Statements
Management is responsible for the preparation of financial statements of the Company that give a true and fair view in
accordance with simplified application of international accounting standards according to the Norwegian Accounting Act
section 3-9, and for the preparation of the consolidated financial statements of the Group that give a true and fair view in
accordance with IFRS Accounting Standards as adopted by the EU. Management is responsible for such internal control
as management determines is necessary to enable the preparation of financial statements that are free from material
misstatement, whether due to fraud or error.
In preparing the financial statements, management is responsible for assessing the Company’s and the Group’s ability to
continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern
basis of accounting unless management either intends to liquidate the Group or to cease operations, or has no realistic
alternative but to do so.
Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from
material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion.
Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with
ISAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are
considered material if, individually or in aggregate, they could reasonably be expected to influence the economic
decisions of users taken on the basis of these financial statements.
As part of an audit in accordance with ISAs, we exercise professional judgment and maintain professional scepticism
throughout the audit. We also:
•
identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error.
We design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient
and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting
from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional
omissions, misrepresentations, or the override of internal control.
•
obtain an understanding of internal control relevant to the audit in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the
Company's and the Group's internal control.
•
evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and
related disclosures made by management.
•
conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on
the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast
significant doubt on the Company's and the Group's ability to continue as a going concern. If we conclude that a
material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in
the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based
on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may
cause the Company and the Group to cease to continue as a going concern.
•
evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and
whether the financial statements represent the underlying transactions and events in a manner that achieves a
true and fair view.
•
obtain sufficient appropriate audit evidence regarding the financial information of the entities or business
activities within the Group to express an opinion on the consolidated financial statements. We are responsible for
the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion.
4
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INDEPENDENT AUDITOR’S REPORT
5 / 5
We communicate with the Board of Directors regarding, among other matters, the planned scope and timing of the audit
and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide the Audit Committee with a statement that we have complied with relevant ethical requirements
regarding independence, and to communicate with them all relationships and other matters that may reasonably be
thought to bear on our independence, and where applicable, actions taken to eliminate threats or safeguards applied.
From the matters communicated with the Board of Directors, we determine those matters that were of most significance
in the audit of the financial statements of the current period and are therefore the key audit matters. We describe these
matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely
rare circumstances, we determine that a matter should not be communicated in our report because the adverse
consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.
Report on Other Legal and Regulatory Requirements
Report on Compliance with Requirement on European Single Electronic Format (ESEF)
Opinion
As part of the audit of the financial statements of Norske Skog ASA, we have performed an assurance engagement to
obtain reasonable assurance about whether the financial statements included in the annual report, with the file name
Norske_Skog_Annual_Report_2025_ESEF.zip, have been prepared, in all material respects, in compliance with the
requirements of the Commission Delegated Regulation (EU) 2019/815 on the European Single Electronic Format (ESEF
Regulation) and regulation pursuant to Section 5-5 of the Norwegian Securities Trading Act, which includes requirements
related to the preparation of the annual report in XHTML format, and iXBRL tagging of the consolidated financial
statements.
In our opinion, the financial statements, included in the annual report, have been prepared, in all material respects, in
compliance with the ESEF regulation.
Management’s Responsibilities
Management is responsible for the preparation of the annual report in compliance with the ESEF regulation. This
responsibility comprises an adequate process and such internal control as management determines is necessary.
Auditor’s Responsibilities
For a description of the auditor’s responsibilities when performing an assurance engagement of the ESEF reporting, see:
https://revisorforeningen.no/revisjonsberetninger
Oslo, 25 March 2026
PricewaterhouseCoopers AS
Herman Skibrek
State Authorised Public Accountant
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INDEPENDENT AUDITOR’S REPORT
FINANCIAL STATEMENTS NORSKE SKOG ASA
Alternative performance measures
Alternative performance measures (APM) is defined as a financial measure of
historical or future financial performance, financial position, or cash flows,
other than a financial measure defined or specific in the applicable financial
reporting framework (IFRS). The company uses EBITDA and EBITDA margin
to measure operating performance on group level. It is the company’s view
that the APMs provides the investors relevant and specific operating figures
that may enhance their understanding of the performance. EBITDA, EBITDA
margin, variable costs, fixed costs, and net interest-bearing debt are defined
by the company below.
EBITDA:
Operating earnings for the period, before restructuring expenses,
depreciation and amortisation and impairment charges, derivatives and other
fair value adjustments, determined on an entity, combined or consolidated
basis. EBITDA is used for providing consisting information of operating
performance and cash generating which is relative to other companies and
frequently used by other stakeholders.
NOK MILLION
2025
2024
Operating earnings
563
-60
Restructuring expenses
5
16
Depreciation
557
481
Impairments
0
121
Derivatives and other fair value adjustments
-356
178
EBITDA
769
736
EBITDA margin:
EBITDA/total operating income. EBITDA margin assist in providing a more comprehensive analysis of operating performance relative to
other companies.
NOK MILLION
2025
2024
EBITDA
769
736
Total operating income
10 482
10 173
EBITDA margin
7.3%
7.2%
Variable costs:
Distribution costs + cost of materials.
NOK MILLION
2025
2024
Distribution costs
1 036
1 005
Cost of materials
6 232
5 927
Variable costs
7 268
6 932
Fixed costs:
Employee benefit expenses + other operating expenses.
NOK MILLION
2025
2024
Employee benefit expenses
1 619
1 702
Other operating expenses
827
803
Fixed costs
2 445
2 505
Net interest-bearing debt:
Net interest-bearing debt consist of bond issued and other interest-bearing liabilities (current and non-current) reduced by cash and cash equivalent.
2025
2024
Interest-bearing non-current liabilities
4 403
4 475
Interest-bearing current liabilities
974
771
Cash and cash equivalents
-1 082
-1 127
Net interest-bearing debt
4 295
4 119
Capital expenditure (capex):
Purchases of property, plant and equipment and intangible assets.
Maintenance capex:
Capex required to maintain the group’s current business.
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I like to be with the people
who actually do the job
know and asking questions to deepen your own
understanding. If you already know the answer,
very little learning occurs.
Magic happens when you don’t know, but still
dare to ask. Questions that make people think,
quietly sparking curiosity across the organisation.
Gemba demands full presence – engaging deeper
thinking, the conscious, analytical part of your
mind.
No agendas. No pre-decided solutions. Just
observation, genuine curiosity, and shared explo-
ration. Meet your people with respect, listen to
their stories, ask open questions, and challenge
assumptions. This is where the magic unfolds:
new ideas emerge, problems are solved, learning
grows – and trust deepens.
Face-to-face interactions create bonds that emails
can never replicate.
So why don’t we do this more often? Because it is
easier to cling to the familiar than to confront the
unknown. Being vulnerable, uncomfortable, and
silent while others speak? It doesn’t feel good.
Yet this, I believe, is the essence of leadership.
Words fade. Actions on Gemba create trust,
growth, and permanent change.
Geir Drangsland
CEO
Let’s be honest: we all fight a quiet battle against
the comfort zone – that irresistible pull toward our
screens, where emails and chats replace real
human connection. Stepping out without ready-
made answers, armed only with questions, feels
exposed and uncomfortable – like training in
biting cold, wind, and rain.
Yet true culture is built on Gemba
*
: right where
work happens, in direct, unfiltered contact with
your team. What fascinates me is how few admit
that real culture begins within ourselves – born
from this inner struggle.
This isn’t about control or surface-level “how are
you?” check-ins. There’s a world of difference
between asking questions to test what others
* Gemba is used in Lean philosophy to
emphasise that one must go to where
the work actually happens, observe
reality, and understand problems where
they arise, rather than managing solely
from reports and meeting rooms.
Get out of your
comfort zone!
AI generated picture
ABOUT NORSKE SKOG
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Outside
Outside
I am proud of you!
I’m spending time with the sales
team at Norske Skog to learn
On a bike tour in Spain with my sales
team at Norske Skog
Steps inside to learn from within
Steps inside to learn from within
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ABOUT NORSKE SKOG
NORSKE SKOG ASA
Sjølyst plass 2, 0278 Oslo
/
www.norskeskog.com
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