About
According to the Act, larger enterprises must carry out due diligence assessments in accordance with the OECD Guidelines for Multinational Enterprises and the UNGP. When conducting the due diligence the enterprise must identify and assess actual and potential adverse impacts on fundamental human rights and decent working conditions that the enterprise has either caused or contributed towards, or that are directly linked to the enterprise through its supply chain or business partners.
Enterprises covered by the Act, must publish an annual account of the findings from the due diligence assessments. The account shall be made easily accessible on the enterprise's website no later than 30 June of each year, and otherwise in case of significant changes to the enterprise's risk assessments during the year.
Additionally, enterprises are obliged to respond to written requests regarding how the enterprise addresses actual and potential adverse impacts. This includes both general information and information relating to a specific product or service offered by the enterprise. Such request for information can be made by anyone. The enterprises have three weeks to reply, and in cases where it is disproportionately burdensome to respond, two months.
Who does it impact?
The Act applies to larger enterprises that are resident in Norway and that offer goods and services in or outside Norway and larger foreign enterprises that offer goods and services in Norway, and that are liable to tax to Norway pursuant to internal Norwegian legislation.
The Act may also impact companies contracting with enterprises encompassed by the Act, e.g. by having to provide information necessary for the contracting party to comply with their obligations pursuant to the Act.
Status: In force
The Act entered into force on 1 July 2022.
Thommessen's comments
Consumers increasingly require that goods and services are produced under decent working conditions and many enterprises wish to contribute positively through their business and supply chain. The introduction of this Act aligns with a global trend of new laws and regulations aimed at promoting ESG standards and CSR. It is based on a broad mapping of global production of goods and provision of services, international regulations and guidelines, in addition to already existing legislation in Norway.
The Act impose an obligation on larger enterprises to carry out due diligence assessments related to fundamental human rights and decent working conditions, publish a public account of these assessments and provide information upon request on how the enterprise address actual and potential adverse impact in the areas within the scope of the Act.
Carrying out human rights due diligence assessments - and being transparent about the findings from the assessments - has previously been considered "best practice", but has become mandatory with the Act.