How companies can support EITI implementation
This factsheet provides a two-page introduction to the Extractive Industries Transparency Initiative (EITI).
Recognising the ongoing challenges associated with the COVID-19 pandemic, the EITI Board has agreed the extension of measures to provide flexibility in EITI implementation and reporting. The flexible measures outlined in this document are for EITI Reports planned for publication in 2020 and 2021.
The EITI factsheet for extractive industries is a concise two-page introduction to the EITI tailored to companies, outlining the local and international benefits of being an EITI supporting company.
Tracking payments by project from companies to government.
Project-level reporting, also called “project-by-project” reporting, means that companies disclose payments by project, for example, royalties paid on gold production at a specific mine. Having access to this data allows citizens and government officials to assess whether the government receives what it ought to from each individual extractive project. That’s because payments can be compared with the terms set out in the laws or contracts governing the project.
An overview of the International Secretariat's team structure.
EITI – disclosing critical investment information
The EITI Standard requires that countries publish information on licensing, production, state ownership, how much each company pays in taxes, royalties and bonuses, broken down by project and type of payment, transfers to local governments and social and infrastructure investments. It encourages contract transparency and disclosure of beneficial ownership of extractive industry companies.
“Implementation of the EITI helps countries achieve the Sustainable Development Goals. I am proud that the EITI has a proven track record of strong country ownership to improve the governance of natural resource wealth as an important engine for sustainable economic growth. The 51 implementing countries have engaged companies and civil society with government institutions to enhance transparency and accountability, quality investment, and citizen empowerment.”
EITI and the Sustainable Development Goals (SDGs)
There are clear benefits for companies operating in countries with beneficial ownership registers:
Reduces risk in business relationsCreates a level playing fieldImproves investment climatePrevents corruption and illicit flowsBuilds trust.
Find out more in this factsheet.
A further resource for why beneficial ownership transparency is positive for business is www.openownership.com