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15 Jun 2022

Norway: Law on mandatory due diligence & right to information about corporate impacts enters into force

The Norwegian Government, based on two parliamentary resolutions, appointed the Ethics Information Committee in August 2018 to investigate a potential law on ethics information and a right to information on companies' human rights impacts. In November 2019, the expert committee published a draft act on supply chain transparency, the duty to know and due diligence. In summer 2020, the Ministry of Foreign Affairs and the Norwegian Agency for Development Cooperation launched an aid programme to combat modern slavery. The programme supports both the prevention of modern slavery in Norwegian partner countries as well as efforts to reinforce businesses’ work on due diligence and value chains.

In April 2021, the Norwegian Government tabled Proposition 150 L (2020-2021 only available in Norwegian) - "Act on business transparency and work with fundamental human rights and decent work". The proposed Act builds on the 2019 draft law, and is based on the work of the committee, which consulted with civil society, labour and business.

On 10 June 2021, the Norwegian Parliament passed the Act and it entered into force on 1 July 2022. It covers companies in Norway and foreign companies that sell products and services and must pay tax in Norway. Companies subject to the Act are required to carry out due diligence and publicly report on these efforts, as well as having a duty to provide information on how they address actual and potential adverse impacts.