The Transparency act

Sit and the Transparency act

The Act on Business Transparency and Work on Fundamental Human Rights and Decent Working Conditions (the Transparency Act) came into effect on July 1, 2022. The purpose of the law is to promote businesses' respect for fundamental human rights and decent working conditions, and to ensure public access to information. Sit is subject to the Transparency Act and adjusts its practices accordingly.

Due diligence assessment of Sit's suppliers

The law imposes a duty on the organization to conduct due diligence assessments in accordance with the OECD Guidelines for Multinational Enterprises. Sit has conducted an overall due diligence assessment of our suppliers, and the Sit board has signed off on the assessment.

Read the signed due diligence assessment (NO)

Suppliers operating in high-risk industries or with value chains in high-risk countries constitute approximately 35% of all suppliers to Sit as of September 2022. The conclusion is that Sit has a relatively large number of suppliers that may have value chains in countries at high risk of violating fundamental human rights and/or operate within Norwegian high-risk industries for labor crime. This does not mean that the suppliers have actual violations, but that they operate in industries defined as high-risk by the Norwegian Tax Administration or deliver goods that, in their value chain, have a high risk of violating fundamental human rights (DFØ's high-risk list).

As part of the due diligence assessment, we have used DFØ´s high-risk product list. The list includes product categories where there is a high risk of violating fundamental human rights. The list contains information about "high-risk products.

High-risk products mean that there is extensive documentation showing systematic violations of the UN Declaration of Human Rights, ILO core conventions (prohibition of child labor, forced labor, discrimination, and the right to organize), and national labor and HSE legislation in the product's supply chain. These violations can occur in raw material extraction, component manufacturing, and final product assembly. When assessing risk, consideration is given to the risk level throughout the supply chain.

Sit has categorized suppliers based on the products and/or services they deliver and cross-referenced them against DFØ's high-risk list as well as Norwegian industries categorized as high-risk by The norwegian tax administration and the norwegian labour inspection autority.

Measures to meet the requirements of the Transparency Act

Update of business ethical guidelines

Sit has developed updated business ethical guidelines for sustainable business practices that apply to the entire organization and our suppliers. These have been updated to comply with the Transparency Act and principles of sustainable business practices.

Measures to reduce supplier risk

An internal working group has been established to work on measures that can be implemented to reduce the risk of our purchases contributing to violations of fundamental human rights and decent working conditions. This work is intended to strengthen and professionalize Sit's procurement function.

Right to iinformation and processing of information requests

To meet the requirements of "§6 Right to Information" and "§7. Companies' processing of information requests", we have established a dedicated email address for access requests, and internal procedures are being developed for processing information requests.

Do you have questions related to Sit about the Transparency act or how our suppliers comply with the Transparency act? Please contact us at: innsyn@sit.no