The Transparency Act - and who it applies to

Who must follow the Transparency Act

• The Transparency Act applies to larger enterprises that are domiciled in Norway and that offer goods or services in or outside Norway.
• The Act also covers large foreign enterprises that offer goods and services in Norway and are liable to pay tax in Norway under Norwegian domestic legislation.
• Larger enterprises are enterprises that are public interest entities pursuant to Section 1-6 of the Accounting Act, or that exceed at least two of the following three thresholds:
  1. sales revenue: NOK 70 million,
  2. balance sheet total: NOK 35 million
  3. 50 full-time equivalents. 
• The term "resident in Norway" is to be understood in the same way as under the Accounting Act. This means that enterprises will normally be domiciled in Norway if they have their head office here. 
• Businesses must meet the requirements of the Act from the financial year after the conditions have been met.

The Consumer Authority on the Transparency Act (in Norwegian only)

The Consumer Authority - Who does the Transparency Act apply to

Transparency Act

The Accounting Act on Public Interest Entities (in Norwegian only)

The Consumer Authority - get started with the Transparency Act (in Norwegian only)

Due diligence assessments

• Enterprises covered by the Transparency Act must identify and manage the risk of negative consequences for human rights and working conditions.
• This includes anchoring accountability in policies and procedures, as well as monitoring and evaluating measures.

The Consumer Authority on due diligence (in Norwegian only)

Reporting obligation

• Enterprises covered by the Transparency Act must publish an account of the due diligence assessments by 30 June each year, and in the event of significant changes in the enterprise's risk assessments
• The report will provide insight into key findings and measures that have been implemented.
• It must contain a general description of the activities, findings and measures.

The Consumer Authority on the reporting obligation (in Norwegian only)

The Consumer Authority - how to prepare a report under the Transparency Act (in Norwegian only)

Processing of information requirements

• Anyone who wants information can contact companies covered by the Act in writing and ask for information about how the companies handle actual and potential negative consequences for fundamental human rights and decent working conditions. 
• If you receive such a request for information, you must respond to this in writing, within a reasonable time and no later than within three weeks. 

The Consumer Authority on the processing of information requirements (in Norwegian only)

Supervision and consequences of breaches of the Transparency Act 

• The Consumer Authority advises businesses on the law and supervises that the law is followed.
• Companies that violate the Transparency Act can be ordered to rectify this, and can also be fined (coercive fines and violation fines). Violations of the Transparency Act can also damage the company's reputation. 

The Consumer Authority - auditor's checklist for the Transparency Act (in Norwegian only)

The Consumer Authority on supervision of the Transparency Act (in Norwegian only)