Accelerating Systematic Disclosure Sam Bartlett Technical Director 12

Accelerating Systematic Disclosure Sam Bartlett Technical Director 12 February 2020 The global standard for the good governance of oil, gas and mineral resources.

“Systematic disclosure” … refers to the desired end-state, where the EITI’s disclosure requirements are met through routine and publicly available company and government reporting. This could include, public financial reporting, annual reports, information portals, and other open data and freedom of information initiatives. “Mainstreaming” refers to the process for realising this goal, which may include interim measures, pilots, and other capacity building activities.

2005: Report of the International Advisory Group “It was recognised that an international structure was required to channel advice and financial support and to exchange lessons learnt. However, such a structure should be light touch and designed with an eye on the ultimate goal for EITI to be ‘mainstreamed’, with its criteria and principles becoming the normal way of working in all the relevant extractive industries within three to five years”

The typical reporting cycle… (x 423)

Requirement 1. 5 – EITI Work plans The work plan must: - Set EITI implementation objectives that are linked to the EITI Principles and reflect national priorities for the extractive industries. - Address the steps needed to mainstream EITI implementation in company and government systems. MSGs are encouraged to “Explore innovative approaches to extending EITI implementation to inform public debate about natural resource governance and encourage high standards of transparency and accountability in public life, government operations and in business. ”

Requirement 4. 9 b “The multi-stakeholder group is required to agree a procedure to address data quality and assurance based on a standard procedure endorsed by the EITI Board. The multi-stakeholder group is required to apply the standard procedure without any material deviations. Should the multi-stakeholder group wish to deviate from the standard procedures, approval from the EITI Board must be sought in advance. …”

Reporting cycle Disclosure cycle

Opportunities… From: Publishing and using (old) “EITI data”. To: Using the EITI to collate and analyse the latest published data Encouraging organisations to adopt open data policies Use the EITI to explore gaps and inconsistencies Use the EITI to address concerns re: data quality

Opportunities… From: Recommendations on improving EITI Reconciliation & Reporting To: Recommendations to improve routine disclosure Recommendations to improve internal controls Recommendations to improve external audit and assurance

Opportunities… From: “What was paid? ” To: “Examining the systems that ensure that the correct amount is paid” The EITI as a compliance review? Using the EITI to verify that laws are being followed Using the EITI to verify that contracts are being honoured Other opportunities to build confidence and trust

Opportunities… From: MSGs discussing EITI Reports To: Using the EITI to expand opportunities for stakeholder engagement We are not trying to get rid of national secretariats and MSGs. We are interested in exploring ways to make then more influential and effective.

Let’s work together to find smart solutions Tusen takk!