As transparency and sustainability become crucial in today's business landscape, the Norwegian Transparency Act emerges as a critical piece of this global trend.
This page provides a detailed look at the essential aspects of the legislation and how Factlines can help your business comply with the Act.
The Norwegian Transparency Act, effective as of July 1 2022, represents a significant step towards promoting ethical practices and corporate accountability in Norway. The Act aims to ensure that companies act responsibly, thereby empowering consumers, investors, and society. By providing access to crucial information about companies' impacts on their supply chains and the global community, the Act seeks to foster transparency and enable informed decision-making.
Similar laws in Europe:
• 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 the act:
• 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 the Act
The Act's reach extends to all companies operating in Norway that meet specific financial thresholds, including 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 Act's broad applicability is crucial for businesses seeking to maintain compliance and navigate the evolving regulatory landscape effectively.
Approximately 9,000 companies will be directly affected by the legislation. However, smaller businesses could also be affected if larger ones enforce additional requirements to comply with the law.
Requirements of the Norwegian Transparency Act
Conduct due diligence assessments
Publish annual reports on due diligence
Provide transparent information
The OECD framework drives Factlines' methodology
Download a free template for due diligence reporting
Easily document your organisation's findings and measures under the Norwegian Transparency Act. Fill out the form to download our free template.
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 consequences of non-compliance with the Norwegian Transparency Act
Non-compliance with the Norwegian Transparency Act carries severe consequences beyond legal penalties. Companies may incur fines of up to 4 per cent of their annual turnover or NOK 25 million, whichever amount is higher.
Moreover, failure to publish compliance reports can lead to irreparable damage to a company's brand and market trust, potentially necessitating increased resource use on external consultants and legal assistance. Maintaining effective compliance routines is essential to mitigate risks and maintain stakeholder confidence.
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
How Factlines supports compliance with the Sustainable Supplier Network
Save up to 95% of the time spent on due diligence assessments
Suppliers are automatically divided into risk groups
Automatically generated follow-ups
Share information with over 16.000 companies
Free access for suppliers
Guidelines and step-by-step support
Factlines provides comprehensive guidelines within the platform, guiding users step by step through the compliance process.
Factlines badge for the Norwegian Transparency Act
Complete the Norwegian Transparency Act guide and earn our badge, showcasing your company's dedication to ethical standards.
