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The Transparency Act

The Transparency Act shall promote the company's respect for fundamental 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 carry out due diligence assessments. This means that companies must map their 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.

Ecofric can assist you with the Transparency Act. We are working on several exciting projects around the Transparency Act to make the job easier and more efficient for those of you who are hit. The goal is to save you both money and time, so that you can continue with what you are good at.

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The Transparency Act enters into force as early as 1 July 2022. If you are affected by this Act, you must by 30 June 2023 publish a statement of due diligence assessments for your company. The law applies to larger companies in Norway that offer goods and services in or outside Norway. Larger companies are defined as:

  • Sales revenue of more than NOK 70 million
  • Balance sheet total of more than NOK 35 million
  • Average employees in the financial year of over 50 man-years

If this is you, you must have a plan for how you will carry out due diligence assessments of your business and your
value chain, and for how to handle future claims.

The Transparency Act opens up for anyone to ask
demands for insight into their value chain when it comes to human rights and decent working conditions. And you have one
obligation to respond to the requirements within 3 weeks.
Here it is important to be proactive and prepare for the demands that come.

Read more about the Transparency Act at the Norwegian Consumer Agency here

What is a due diligence assessment?

Precautionary assessments are a risk-based approach to respecting and safeguarding people, society and the environment in one's own business and throughout the value chain.

The model has 6 steps that describe how companies can work for more responsible and sustainable business practices. Being good at due diligence does not mean that a company does not have a negative impact on people, society and the environment, but rather that the company is open and honest about challenges and handles this in the best possible way in consultation with its stakeholders.

Read more about the OECD's model for due diligence assessments

Read more about the UN's guiding principles for business and human rights

Modell for aktsomhetsvurdering