Norwegian government heeds concerns about impact of due diligence law on public tenders

Some firms say complying with the Transparency Act disadvantages them against less dutiful peers 

The Norwegian government says it is taking “seriously” complaints by some firms that adhering to the country’s due diligence law leaves them worse off in public tenders.

Norway’s Transparency Act, introduced in 2022, requires large companies to check for human and labour rights breaches in their supply chains.  

A recent review of the law concluded that most businesses viewed it as well-designed, but some were concerned it made it harder for them to win public contracts.

The review was based on research from KPMG, commissioned by the government, which found: “Dutiful enterprises that offer solutions where due diligence is accounted for and priced in may risk losing tenders to less reputable competitors who have not necessarily conducted as thorough due diligence or implemented the measures outlined in their proposals.”  

One supplier “expressed that this could result in unfair competition for the enterprises”. 

A spokesperson for the Ministry of Children and Family Affairs told Real Economy Progress there may be a “lack of knowledge and experience among public procurers” when it came to the law, but there was not enough grounds to conclude that the concern around tenders was widespread. 

“Nevertheless, this is a finding we take seriously and will carry forward into our continued work.” 

The review will serve as “an important knowledge base for further work on possible regulatory changes” the government said.