New Norwegian Transparency Act makes company reporting on human rights and working conditions no longer voluntary but obligatory.

From July 1st 2022 larger enterprises located in Norway or with business activities in Norway will be legally required to openly disclose their human rights impacts and efforts for decent working conditions. Further companies will legally be obligated to respond to information requested of the public on human rights and working conditions. 

It is estimated that the law will immediately apply to about 8,830 enterprises, which includes companies with two of the following three conditions: 

1. sales revenues: NOK 70 million
2. balance sheet total: NOK 35 million
3. average number of employees in the financial year of 50 full-time equivalent.

”The new Norwegian Transparency Act affects a lot of companies doing business within or with Norway, and it sets a new precedent for communicating clearly and actively with external stakeholders.”

You find yourself being part of one of the 8,830 enterprises? That means that come July 1st 2022 you need to take serious steps to identify, address, prevent and limit violations of human rights or decent working conditions in your own operations and supply chain. This includes that companies carry out due diligence in accordance with the OECD Guidelines for Multinational Enterprises. Further, the new act also requires enterprises to annually publish a report on their efforts with the first report being due the 30th of June 2023.

We have been assisting companies in their preparation for the Transparency Act, gaining valuable insights and best practice recommendations. The Act requires a special mix of ESG, strategy and communications, and we would be happy to discuss how the Transparency Act affects you.