Norwegian Transparency Act (NTA)

The Norwegian Transparency Act requires companies to conduct regular due diligence along their supply chains with regard to human rights and labor risks. It also aims to increase transparency on how companies manage adverse impacts.

Goals of the Act

The law promotes respect for fundamental human rights and decent working conditions, and provides the public with insights into how companies are addressing the negative impacts of their business activities in upstream supply chains.

Scope of the Act

The NTA applies to companies that are resident in Norway and meet the requirements of "large" organizations as defined in the Norwegian Accounting Act. In-scope companies must exceed at least two of the following thresholds: annual turnover of NOK 70 million, balance sheet total of NOK 35 million, and average number of employees of 50 full-time equivalents.

Obligations for affected companies

Companies must conduct regular due diligence checks in accordance with the OECD Guidelines for Multinational Enterprises and the principle of proportionality. They must also report publicly on the due diligence process and, upon written request, disclose to any individual how they are addressing actual and potential adverse impacts.

Software solutions for implementation and reporting

Compliance with due diligence obligations can be facilitated through the use of software solutions that enable the systematic collection and analysis of data. They can also help companies perform due diligence more efficiently and compile complex data for public disclosure with minimal effort.