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Transparency Act
What is the Transparency Act?
The Transparency Act, also called Act on enterprises’ transparency and work on fundamental human rights and decent working conditions, came into force on July 1, 2022.
The purpose of the law is to:
- Promote businesses' respect for fundamental human rights and decent working conditions.
- Ensure public access to information on how companies manage actual and potential negative consequences of their business and supply chain.
Who does the law apply to?
The Transparency Act applies to larger companies domiciled in Norway that meet at least two of three criteria:
- Sales revenues exceeding NOK 70 million.
- Balance sheet total exceeding NOK 35 million.
- More than 50 employees on average.
What does the law entail?
Companies covered by the law have a duty to:
- Conduct due diligence assessments – systematically identify and manage risks of breaches of human rights and decent working conditions in their own business and supply chain.
- Publish a statement – at least once a year, describing their work on due diligence assessments and measures.
- Respond to information requests – anyone has the right to request information on how the business manages risk in its supply chain, and the company must respond within three weeks.
Why is the Transparency Act important?
- It contributes to more responsible and sustainable supply chains.
- Provides consumers and stakeholders with insight into how products and services are created.
- Puts pressure on businesses to actively work for better working conditions and human rights – both in Norway and internationally.