Compliance | Upcoming reporting deadline under the Norwegian Transparency Act – Part 1: Introduction
Under the Norwegian Transparency Act, companies are required to perform due diligence (Nw. aktsomhetsvurderinger) on fundamental human rights and decent working conditions in line with the OECD Guidelines for Multinational Enterprises and report on their efforts on an annual basis. In our newsletter series, we will look more closely at the content of the mandatory reporting, available guidance and provide practical insights along the way.
According to the Transparency Act (Section 5), the annual report must include at a minimum the following:
- a general description of the company’s structure, area of operations, guidelines and procedures for handling actual and potential adverse impacts on fundamental human rights and decent working conditions;
- information regarding actual adverse impacts and significant risks of adverse impacts that the company has identified through its due diligence; and
- information regarding measures the company has implemented or plans to implement to cease actual adverse impacts or mitigate significant risks of adverse impacts, and the results or expected results of these measures.
What period to report for?
The company’s last financial year. However, it is not mandatory to report for the period before the Transparency Act came into effect (1 July 2022).
Where to publish the report?
The report must be made easily accessible on the company’s website. It may in addition be included in companies’ annual report on corporate social responsibility in accordance with Section 3-3c of the Norwegian Accounting Act. If not included therein, companies shall at least inform where the report is or will be made available.
Who needs to sign the report?
The same rules apply as for the signature of financial and non-financial reporting under the Norwegian Accounting Act (Section 3-5). Often, the required signatories will be the CEO and the board of directors.
It is possible, but not mandatory, to publish one report for the whole group. Note that all companies within the group that are subject to the Transparency Act shall publish it on their own homepage. It must be easy for the public to identify relevant information for a specific group company within the group report.
We recommend thinking through all the practical aspects of reporting well ahead of time and involve relevant resources as early as possible to ensure an effective process.
In our next newsletters, we will look more closely at the content of the annual report under the Transparency Act.
Questions? Do not hesitate to reach out to our Compliance & Risk Management team.