FAQ Transparency Act
Frequently Asked Questions: Transparency Act
Why do we need to answer questions related to our products?
The purpose of the Transparency Act
is to ensure that decent working conditions underlie the production of goods
and delivery of services. The law was introduced in 2022. There will now be
more inspections, random samples, and audits on products within the
construction industry than before. To be considered as a supplier in
construction projects, it is more important than ever that the product's supply
chain is well documented.
Why is it important that the questions are standardized?
In the past, there hasn´t existed an
industry standard for information related to the Transparency Act. Many
Norwegian companies have created their own versions of forms that are sent to
their suppliers to gather information about products. By agreeing on a common
standard, the exchange of information can become more efficient. Instead of
continually filling out forms, a supplier can refer to the product database or
other places where the answers are already available.
What do the questions consist of?
The questions fall into two
categories: self‑declaration and product data. The self‑declaration includes
questions about labor conditions and human rights both at the last production
site and earlier in the production chain. Product data deals with specific
properties of the product such as raw materials, country of production, and
region.
Who should answer the questions?
The business that introduces a
product into the Norwegian market is responsible for ensuring that the product
is documented. The self‑declaration should be sent from this business to the
last production site. Product data can be filled out by the business's supplier
with or without assistance from the manufacturer.
Should all products be described?
In principle, all goods should be
described. If several goods share the same supply chain, they can be covered by
the same self‑declaration.
What if we do not know the entire
supply chain of the product? That's perfectly fine! There will be options
related to the product such as "partially known supply chain" and
similar that take into account that it can be difficult to trace and gather the
information.
Where will the data be displayed?
Self‑declarations and product data
will be displayed on the product page in the EFO base.
How often should we make self‑declarations?
Initially, this should be done once
a year in the same way as for due diligence assessments.
What about due diligence assessments?
Norwegian businesses that meet
certain criteria are required to perform due diligence assessments where they
describe in more detail how they work with the Transparency Act. Most
businesses covered by the Transparency Act have created their own solutions for
this or use software available in the market. This can continue. While due
diligence assessments are at the business level, this solution focuses on the
products. It is natural that the results of self‑declarations and product data
are summarized and described further in the due diligence assessment.
Who owns and maintains the standard?
The Directorate for Financial
Management (DFØ) owns and maintains the standard for self‑declaration and
product data. When a new annual self‑declaration is issued, the latest version
will automatically be used and last year's self‑declaration will be overwritten.
What happens if we do not enter data related to the Transparency Act?
After implementation, it will be
possible to filter out products that lack data or do not meet contractual
requirements in the construction project. The building owner can also mark
products for audit or inspection if data is missing.
Why has a separate 'transparency platform' been created for this?
The questions related to the
Transparency Act are a standard managed outside the EFO base by the Directorate
for Financial Management (DFØ). Therefore, it technically has to be located
outside. However, we have designed it so that you start the process of entering
product data and sending self‑declarations from the EFO base.
Why does it cost money to use the transparency platform?
The costs are related to the
operation of the technical solution, new development to cover member needs,
support, and updates when new versions of the self‑declaration and product data
are released.
We already use a self‑declaration form that we have created ourselves/made by our auditors. Should we continue to use it in addition?
By switching to this version, you
ensure that you meet contractual requirements related to the Transparency Act.
You also ensure that data from the declaration are easily accessible from the
product pages in the EFO base.
What do the questions in the self‑declaration look like?
There are a total of 23 questions
that must be answered with yes/no. They are available in both Norwegian and
English.