The Transparency Act shall promote the company's respect for basic human rights and decent working conditions, and ensure the public access to information. The law imposes on companies a duty to provide information and a duty to perform due diligence assessments. This means that businesses must chart its value chain and perform due diligence and risk assessments in relation to both direct and indirect damage to human rights and social conditions within working conditions.
The Transparency Act enters into force already July 1, 2022! If you are struck by this law, you must within June 30, 2023 publish publicly one the statement of due diligence assessments for their business. The law applies to larger companies in Norway that offers goods and services in or outside Norway. Larger businesses are those that have;
If 2 of 3 of the criteria below meet your company, then you are required to follow the Transparency Act:
- a sales income of more than NOK 70 million
- a balance sheet total of more than NOK 35 million
- average employees in the financial year of more than 50 man-years.
Is this you?
Then you must have a plan for how you will carry out due diligence assessments of your business and your value chain, and for how you will handle future claims. The Transparency Act opens up for anyone to demand insight into their value chain when it comes to human rights and decent working conditions. And you have a duty to respond to the requirements within 3 weeks. This does not seem very advanced. But it is not only important to explain how you are to carry out due diligence assessments, it is also necessary to carry out surveys, risk assessments and actual measures to reduce your own negative impact (directly or indirectly) that you find. Both due diligence assessments you perform and claims / complaints you receive must be accounted for and published publicly.
Is this NOT you?
Then you can in any case be affected indirectly by the Transparency Act. When larger companies need to map and make due diligence and risk assessments in their value chains, they need information from their suppliers. And maybe it's you? The first thing you should do is familiarize yourself with what a due diligence assessment is. Care is about asking the right questions backwards in the value chain, and making sure that the people in their value chain are comfortable with decent working conditions and that no human rights are violated. It's about taking responsibility, it's about ethical trade and it's simply about caring about other people.
Regardless of whether you are affected directly or indirectly by the law, risk and due diligence assessments are an area we can help you with. We also want to learn more about which solutions can make due diligence assessments and ethical procurement more seamless for you.
We can assist you with;
- Introduction to the Transparency Act, due diligence assessments and ethical trade
- Statement and policies for due diligence assessments
- Supplier overview and requirements management
- Risk analysis and non-conformance management
- Materiality analysis
- Action plan
Book a meeting with one of our sustainability advisors, Gunn Kristine, to hear more HERE.
If you need assistance and have challenges in sustainability, get in touch. We can help you.