The purpose of the Transparency Act is to promote enterprises’ respect for fundamental human rights and decent working conditions in connection with the production of goods and the provision of services and ensure the public access to information regarding how enterprises address adverse impacts on fundamental human rights and decent working conditions.
This legislation aligns with Norway's commitment to achieving the United Nations' Sustainable Development Goals, particularly Goal 8 on promoting decent work and economic growth, as well as Goal 12 on responsible production and consumption. The primary objective of the Transparency Act is to encourage sustainable business practices and ensure that businesses proactively address any negative consequences associated with human rights and working conditions.
As a result, the Act grants the general public the right to access information about how businesses handle these consequences.
To fulfil these obligations, ECIT has undertaken a due diligence process in line with the five-step OECD Guidelines for Multinational Enterprises. This process aims to identify and assess potential adverse impacts and risks related to human rights and working conditions.
Subsequently, ECIT has formulated guidelines to cease actual adverse impacts or mitigate risks of adverse impacts.
Source: Figure 1: OECD (2018) OECD Due Diligence Guidelines for Responsible Business Conduct
ECIT has established a strong presence in the Nordics and is in 10 countries, with 2,600 employees and 100 offices. The company’s unique one-stop-shop concept allows us to offer a comprehensive range of services in key business areas, including IT, Finance & Accounting, and Tech, within various sectors and industries. Services delivered are, among others: Finance & accounting, cloud services and security solutions, advisory, business administration software, high-end managerial advice, and digital transformation, including automation and robotics. Through knowledge-based services, we assist our customers in realizing their business potential. By leveraging our knowledge-based services, ECIT assists customers in achieving their business potential.
To ensure responsible business practices, ECIT has implemented guidelines and procedures for reporting and addressing actual and potential adverse impacts on human rights and working conditions. These guidelines include annual due diligence processes that mitigate potential risks and safeguard our employees' well-being and our direct suppliers' value chain.
We acknowledge that the potential risks may vary across our IT, Tech, and Finance & Accounting divisions. In 2022, ECIT established both a Code of Conduct and a Supplier Code of Conduct which covers various areas such as human rights, gender equality, supplier relationships, labour standards, and environmental responsibility. In 2023, we launched a company-wide online course on our Code of Conduct. Additionally, our Norwegian subsidiaries, subject to the Transparency Act, follow the due diligence process outlined by the OECD, alongside our Code of Conduct and Supplier Code of Conduct.
It is important to note that most of ECIT's suppliers are based in Norway and Scandinavia. Consequently, we anticipate that the risk associated with adverse impacts or risks of such impacts will be minimized through our commitment to compliance and responsible business practices.
The Transparency Act aligns with §1-7 of the Norwegian Accounting Act, which pertains to the financial year. The Act entered into force on July 1, 2022, and includes actions and initiatives carried out for the fiscal year 2023.
ECIT as a Group and its Norwegian subsidiaries covered by the Transparency Act acknowledges the obligation to comply with the Act's requirements. To fulfil these obligations, ECIT has undertaken a due diligence process in line with the five-step OECD Guidelines for Multinational Enterprises. This process identifies and assesses potential adverse impacts and risks related to human rights and working conditions.
The process outlines how risk should be assessed, what should be prioritised for broader due diligence, and ultimately, how due diligence assessments should be conducted and followed up on (risk assessment).
The following outlines the risk assessment considerations in connection with the due diligence process and supplier selections:
- Geographical aspect - because our business is based in Scandinavia, most ECIT suppliers are situated there. This geographical aspect mitigates the risk of adverse impacts or associated risks, as Scandinavian countries are renowned for their highly advanced and well-protected human rights
- Business nature – a significant portion of the business activities are people-oriented, limiting the risk associated with the Transparency Act primarily to IT services and product sales.
The due diligence process has revealed that ECIT is unlikely to directly cause or contribute to negative impacts across these risk categories.
ECIT consistently evaluates the risks associated with the group's activities and its relationships with business associates, including suppliers and partners.
Further, ECIT is committed to enhancing transparency within the supply chain, recognising the Transparency Act as an ongoing process with continuous yearly improvements.
Reports related to the Transparency Act is available by request to apenhetsloven@ecit.no.
