Norwegian Transparency Act

With this Act, Norway is one of the first countries in Europe moving from soft law to hard law in making responsible business a legal requirement for companies.

Operating ethically is becoming a “must-have”. Companies are required to adopt measures to identify, cease, prevent, mitigate and publicly account for negative actual and potential human rights impacts. Measures relate to a company’s complete value chain, including indirect suppliers.

The Norwegian Transparency Act

The Transparency Act - Forbrukertilsynet entered into force on 1 July 2022. The Act places three main duties on companies:

Due diligence: The duty to carry out due diligence to identify and assess actual and potential adverse impacts on human rights and decent working conditions in companies and their supply chains.
Report on due diligence: The duty to publish an annual account of the due diligence process by 30 June each year.
Right to information: The duty to respond to requests from the public on how a company addresses actual and potential adverse impacts on human rights and decent working conditions.

DNV can guide your business on meeting the requirements of the Transparency Act

With our:

Local knowledge combined with global reach; and
Deep specialists on human rights and decent working conditions who can assist you with human rights due diligence.

We can provide:

Gap analysis on your company’s compliance with the Act and preparations for upcoming EU directives.
Human rights due diligence, including a review of policies and procedures.
Advice on human rights due diligence and follow-up of your suppliers and sub-contractors.
Advice on annual reporting on the Act.
Systems to comply with the information duty.
Digital systems to help you effectively comply with the Act.
Training around the Transparency Act and similar laws in Europe, including on human rights and decent working conditions.
In-country audits where negative risks or impacts have been identified.

DNV can help you comply with all three duties of the Act

1. Due diligence

We assist companies with:

Companies must undertake human rights/social due diligence assessments in the company and through all levels of their supply chain.
Applicable since July 1st 2022.

Gap analysis of compliance with the Act.
Due diligence assessments of human rights risks in your company and value chain (based on OECD’s responsibility wheel).
Review of your company policies, including human rights policies and ethical guidelines.
Review of your supplier management, including supplier Code of Conduct, prequalification procedures and contract forms.
Practical steps and systems to monitor and follow up with your supply chain regularly, including digital solutions to collect the right information.

2. Report on due diligence

We assist companies with:

Public statement to be published on company website explaining how the company is undertaking social due diligence.
The statement shall cover as a minimum:
1. a general description of the company's organization, operating area, guidelines and routines for handling actual and potential negative consequences for basic human rights and decent working conditions;
2. information about actual negative consequences and significant risk of negative consequences that the business has uncovered through its due diligence assessments;
3. information about measures that the business has implemented or plans to implement to stop actual negative consequences or limit significant risk of negative consequences, and the result or expected results of these measures.

Tailor made reporting formats for your annual company disclosure of due diligence under the Act.
How to collect the right information/data for the annual disclosure, including digital solutions.
How to undertake the annual reporting.
Training of key staff on reporting and digital systems.

3. Right to information	We assist companies with:
Upon written request, any person has the right to information from an enterprise regarding how the enterprise addresses actual and potential adverse impacts pursuant to Section 4. This includes both general information and information relating to a specific product or service offered by the enterprise.	Setup of website for the reception of requests from the public. Systems to handle and respond in time to requests from the public, including a list of Frequently Asked Questions (FAQ).

Similar laws in Europe

A similar act entered into force from January 2023 in Germany: The new Supply Chain Act (bundesregierung.de). The EU is following this with the Corporate Sustainable Due Diligence Directive (CS3D) which will expand requirements for transparency with reporting requirements starting from 2025. These laws share a common approach and requirements – based on the UN Guiding Principles on Business and Human Rights (UNGP) and the OECD guidelines for responsible business – to make meaningful attempts at creating transparency in the supply chain. Companies * reporting properly on the Transparency Act are thus better prepared for the EU directive reporting

Ask our specialists

Cecilie Sjursen LLM

Cecilie is a Senior Human Rights Consultant in in DNV’s sustainability Team at Høvik.

She has helped numerous companies comply with the Norwegian Transparency Act, preparing compliance programs, advising on risk assessments and reporting. Cecilie manage due diligence projects and advises on human rights, social responsibility and green claims for both Norwegian and international companies. Clients ranging from large retail clients to private equity funds. She is an experienced speaker on ESG topics and the Transparency Act.

Cecilie specializes in human rights, corporate social responsibility, due diligence and EU Green Deal regulations, hereunder the Norwegian Transparency Act, the OECD Guidelines and the UNGPs.

Before joining DNV, Cecilie worked as a corporate lawyer, specializing in M&A and ESG, leading several major acquisitions and restructurings of Norwegian companies, ensuring ESG compliance along the way. She also worked on human trafficking cases for the Norwegian Directorate of Immigration. She holds a Master of Law from Oslo University with specialization in international human rights and equality- and anti-discrimination law.