Expert Guide on Human Rights and Forced Labour in Norway

• The primary legislation is the Transparency Act, which applies to larger enterprises operating in Norway or offering goods and services in Norway or abroad. The Act aims to promote respect for fundamental human rights and decent working conditions in connection with the production of goods and provision of services. 
• The Act is complemented by the Corporate Sustainability Reporting Directive (CSRD), which has been implemented into Norwegian law and imposes broader sustainability reporting obligations.
• Fundamental human rights are defined in line with international conventions, including the International Covenant on Civil and Political Rights and ILO core conventions.

There are no sector-specific rules under the Transparency Act; it applies broadly to all sectors. The focus is on company size and activities rather than industry.

Companies defined as "larger enterprises" (meeting certain thresholds for revenue, balance sheet, and employees) must:

• Embed responsible business conduct into their policies.
• Identify and assess actual and potential adverse impacts on fundamental human rights and decent working conditions that the enterprise has either caused or contributed toward, or that are directly linked with the enterprise's operations, products or services via the supply chain or business partners.
• Implement suitable measures to cease, prevent or mitigate adverse impacts based on the enterprise's prioritisations and assessments.
• Track the implementation and results of measures.
• Communicate with affected stakeholders.
• Provide for or co-operate in remediation and compensation where this is required.

• Companies must publish an annual due diligence report (account) by 30 June each year, making it easily accessible on their website and signed by the Board of Directors.
• Companies must respond to written information requests from the public about how they address actual and potential adverse impacts.

• The Norwegian Consumer Authority monitors compliance with the Transparency Act.
• The annual due diligence account must be published and referenced in the company’s annual accounts.
• Under the CSRD, companies must include a dedicated sustainability section in their annual report, following strict content requirements.

• The Norwegian Consumer Authority can issue injunctions, prohibitions, compulsory fines, and fines for violations of the Transparency Act.
• Fines can be up to 4% of the company’s annual turnover or up to 25 million NOK.
• Fines may be imposed for recurring violations, failure to publish the required report, or failure to respond to information requests.
• The Authority can also impose fines on individuals (e.g., board members or executives) who have contributed to violations.

• Coercive fines may be imposed for breaches of certain obligations under the Transparency Act.
• Under the Penal Code and Accounting Act, certain breaches related to sustainability reporting under the CSRD can result in fines and, in severe cases, imprisonment (up to 2 years for standard violations, up to 6 years for gross violations).
• Tort liability for damages may arise if harm is caused by lack of due diligence.

• Directors and executives may face reputational damage and possible tort liability if the company fails to comply.
• Fines can be imposed on individuals who have acted on behalf of the company in connection with violations.
• Intent or negligence is required for individual liability.

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