Guidance on social expenditures by extractive companies (6.1)

Guide › Requirement 6 › Social expenditures by extractive companies (6.1)

The EITI requires disclosures of information related to social expenditures and the impact of the extractive sector on the economy, helping stakeholders to assess whether the extractive sector is leading to the desirable social and economic impacts and outcomes.

Requirement 6.1 relates to social expenditures by companies. 6.1.a) concerns mandatory social expenditures, and b) concerns discretionary (voluntary) social expenditures.

See requirement 6.1 in full
View our topics page on social and economic spending

Guidance note related to this requirement, including country examples

The International Secretariat has developed step-by-step guidance on social expenditures, including examples from countries.

EITI Guidance note 17

Guidance note 17 on social expenditures

Published Date: 
May, 2016
Publisher: 
EITI

relates to requirement 6.1

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In addition to taxes levied by central, regional and local governments, extractive companies often make contributions to regional or local governments, communities, NGOs or other third parties in the areas where they operate.

These transactions are interchangeably called “social expenditures”, “social payments”, or “social investments”.

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Validation of this requirement

Validation (status: May 2017) has found that many MSG do not define social payments (mandatory and voluntary) ahead of information collection. 

The Terms of Reference for Independent Administrators can help MSGs address this in point 1.3.1 and Table 4 in Annex 1. 

See Validation Guide, section 6.1 - Social expenditures
Standard ToRs for Independent Administrators

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