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.

Guidance Note: EITI Requirement 6.1

Published Date: 
January, 2021
Publisher: 
EITI International Secretariat

This guidance note refers to the 2019 EITI Standard

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In addition to taxes levied by central, regional and local governments, extractive companies often make social and environmental contributions in the areas where they operate. These contributions can be made to central, regional or local governments, communities, non-governmental organisations or other third parties. 

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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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