By being transparent about your value chain and having control over it, your company will appear attractive to major clients.
The Transparency Act was adopted by the Storting and entered into force on July 1, 2022. The purpose of the Act is to promote businesses' respect for human rights and decent working conditions in connection with the provision of services and the production of goods. The Act also aims to ensure transparency and public access to information.
If two of these three criteria apply to your company, you are mandated to implement the Transparency Act:
If the majority of these criteria do not apply to your business, be aware that you may still need to adapt to the requirements of the Act. Why? Because your major clients, who are covered by the Act, are obligated to request information from you.
All companies mandated to comply with the Transparency Act must have a statement completed and signed by the board. Insufficient transparency may appear as concealment or withholding of information – an unfavorable corporate presentation. Non-compliance with the Act can lead to consequences, such as coercive fines.
The Act requires you to fulfill several requirements:
We have listed the questions we are most frequently asked regarding the Transparency Act.
The Transparency Act came into force on July 1, 2022, setting a new standard for responsible business practices. The Transparency Act is a Norwegian law designed to promote businesses' respect for fundamental human rights and decent working conditions in connection with the production of goods and provision of services.
Anyone who submits a written request for insight to a business has the right to information on how the business addresses actual and potential negative impacts, based on the due diligence assessment they have conducted.
The Act applies to larger enterprises domiciled in Norway, and foreign companies offering goods and services in Norway, provided they meet certain criteria related to turnover, balance sheet total, and number of employees.
It is essential for businesses to understand not only internal conditions, but also business partnerships and the entire supply chain. The Transparency Act requires you to conduct extensive mapping. It is beneficial to get ahead of this process and act proactively. In such cases, having the support of an experienced partner in this work provides assurance.
We have assisted many businesses with the Transparency Act.
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