Guidance on 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.

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.