Compliance | What to report under the Norwegian Transparency Act? Part 4: Mitigating measures
More specifically, companies are required to provide the following:
- Information on the measures they have implemented or are planning to implement to cease or limit actual and potential adverse impacts on fundamental human rights and decent working conditions.
In its guidance, the Consumer Authority lists some examples of measures that may typically be described here:
- Systems that are in place to handle complaints
- Industry-wide collaborations to solve common challenges
- Dialogue with risk-stakeholders such as indigenous peoples
- Remediation mechanisms to address actual adverse impacts
- Information on the results that were achieved or expected by these measures.
As a minimum, companies need to describe how the measures have contributed to reducing or are expected to reduce the risk for adverse impacts or remedy actual adverse impacts.
Link measures to the relevant risks
Although many measures may have a positive effect on a number of potential adverse impacts, we recommend ensuring that the report clearly identifies the connection between the measures and the company’s significant risks. In addition, some risks and adverse impacts are inherently more difficult for companies to address than others. Pointing out such challenges increases transparency and may thus be a step in the right direction in itself.
We recommend considering all forward-looking statements and expectations carefully. It should be clear that there is uncertainty related to all plans and expectations of how they may improve conditions in the company and its value chain. Due diligence is an ongoing process and it is important that companies have the flexibility to adapt to the dynamic risk landscape they operate in.
Questions? Do not hesitate to reach out to our Compliance & Risk Management team.