Published Date: 
September, 2021

Guidance Note: EITI Requirement 6.4

Environmental impact of extractive activities

This guidance note refers to the 2019 EITI Standard

Download PDF in: English

Summary

With growing public attention on environmental issues, governments and companies are increasingly under pressure to monitor and mitigate environmental damage of human activities. This is particularly the case in the oil, gas and mining sector, which faces increasing scrutiny for its impact on the environment. The increasing demand for critical minerals is contributing to further emphasis on mitigating the environmental impact of exploration and production.

Disclosures on environmental impact management and monitoring in the extractive industries can help citizens better understand the reforms and measures governments are taking to mitigate potentially negative environmental impacts. Such data is particularly relevant for communities affected by extractive operations.

Governments and oversight actors can use environmental disclosures to assess the adequacy of the regulatory framework, as well as management and monitoring efforts to mitigate the environmental impact of extractive industries.

By disclosing information on their environmental impact mitigation efforts, governments and companies can also demonstrate their efforts to protect the environment to the public, investors and local communities. Such data can further support assessments of extractive companies’ adherence to their environmental obligations.

Requirement 6.4 of the EITI Standard encourages implementing countries to disclose information on the management and monitoring of the environmental impact of extractive activities. Stakeholders can agree areas of priority for disclosure, based on national priorities for the sector and demand for transparency at the national and local level. By including environmental disclosures in EITI reporting, stakeholders can better understand the regulatory framework and how it is implemented in practice.

This note provides step-by-step guidance to multi-stakeholder groups (MSGs) on how to disclose information related to management and monitoring of environmental impact, offers examples from implementing countries, and outlines opportunities to strengthen the dissemination and use of data.