Factlines – Explaining The Norwegian Transparency Act

What is the Norwegian Transparency Act?

The Norwegian Transparency Act (åpenhetsloven) requires companies to conduct due diligence to ensure respect for human rights and decent working conditions within their operations and supply chains. Businesses must publish annual reports and respond to public information requests, or risk penalties of up to 4% of annual turnover or NOK 25 million.

Factlines supports your compliance process with structured workflows, supplier insights, and ready-made reporting templates, helping you meet the legal requirements more efficiently.

The transparency act aligns with a broader trend of transparency and human rights regulations across Europe. Similar legislation includes:

• UK Modern Slavery Act
‍
• French Duty of Diligence Law (devoir de vigilance)

• German Supply Chain Due Diligence Act (Lieferkettengesetz)

• EU Non-Financial Reporting Directive

• Dutch Child Labor Due Diligence Law

• Corporate Sustainability Due Diligence Directive (CSDDD)

Companies meeting at least two of the following criteria are subject to åpenhetsloven:

• Annual turnover surpassing 70 million NOK

• Balance exceeding NOK 35 million

• Average of 50 full-time employees or equivalent annual man-hours

Companies affected by åpenhetsloven

Åpenhetsloven applies to all companies operating in Norway that meet certain financial thresholds, such as sales revenue, balance sheet total, and employee count. It also applies to domestic or international companies that offer goods or services within Norway's borders. Understanding the law's broad applicability is crucial for businesses seeking to maintain compliance and navigate the evolving regulatory landscape effectively.

Approximately 9,000 companies are directly affected by the legislation. However, smaller businesses could also be affected if larger ones enforce additional requirements to comply with the law.

Core requirements of åpenhetsloven

The OECD framework drives Factlines' methodology

Risks of Non-Compliance with åpenhetsloven

Financial penalties
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‍Companies that fail to meet the Act’s requirements may face fines of up to 4% of annual turnover or NOK 25 million—whichever is higher. These penalties are designed to encourage proactive compliance and accountability.

Operational Impact
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‍Non-compliance may lead to increased operational costs as businesses scramble to correct violations, often needing external consultants and legal advisors. It can also create supply chain disruptions if key suppliers fall short of transparency standards.

Reputational risks
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Beyond legal consequences, non-compliance can severely damage a company’s reputation. Stakeholders, investors, and customers increasingly expect transparency and ethical practices.

Consequences of Non-Compliance with åpenhetsloven

Failing to comply with åpenhetsloven can have serious financial, legal, and reputational consequences. The law mandates that companies conduct thorough due diligence, publish annual reports, and respond to public information requests.

Falling short in any of these areas not only risks significant penalties but can also damage stakeholder trust and public perception.

Neglecting to address human and social rights violations in the supply chain can have significant repercussions. Apart from the violation itself, such fines could impact financial outcomes, trigger negative media attention, and even prompt customer disengagement.

Iris Frøybu
Senior Advisor at Factlines

Download a free template for due diligence reporting

This template provides a structured overview of what your company must include in the due diligence report to comply with the Norwegian Transparency Act.

Fill out the form to download our template.

mal for redegjørelse etter åpenhetsloven factlines

Factlines makes due diligence assessments and reporting easier

4 key benefits of our solution

Always up to date

Factlines keeps your questionnaires aligned with the Norwegian Transparency Act, CSDDD, and other regulations.

Factlines Supply Chain Sustainability Software esg due diligence icon

Customizable SAQs

Use ready-made questionnaires or tailor your own based on industry and supply chain needs.

Automated risk management

Identify gaps and get follow-up actions to mitigate risks and ensure compliance.

Efficient data reuse

Suppliers can reuse responses across customers, saving time and ensuring consistency.

See more features

See how others use Factlines to ensure compliance with åpenhetsloven in their supply chain

Sustainability in the beverage industry supply chain

Check the Hansa Borg & Solera case and how Factlines is helping them to comply with the Norwegian Transparency Act and promote positive impact in the beverages supply chain.

The Norwegian Transparency Act – what it is and how Factlines helps you comply

What is the Norwegian Transparency Act?

Companies affected by åpenhetsloven

Core requirements of åpenhetsloven

Risks of Non-Compliance with åpenhetsloven

Consequences of Non-Compliance with åpenhetsloven

See how Factlines meets the requirements of the Norwegian Transparency Act.

Download a free template for due diligence reporting

Factlines makes due diligence assessments and reporting easier

4 key benefits of our solution

See how others use Factlines to ensure compliance with åpenhetsloven in their supply chain

Sustainability in the beverage industry supply chain

The Norwegian Transparency Act – what it is and how Factlines helps you comply

What is the Norwegian Transparency Act?

Companies affected by åpenhetsloven

Core requirements of åpenhetsloven

Risks of Non-Compliance with åpenhetsloven

Consequences of Non-Compliance with åpenhetsloven

See how Factlines meets the requirements of the Norwegian Transparency Act.

Download a free template for due diligence reporting

Factlines makes due diligence assessments and reporting easier

4 key benefits of our solution

See how others use Factlines to ensure compliance with åpenhetsloven in their supply chain

Sustainability in the beverage industry supply chain

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