Global Transparency Initiative Names Companies Failing to Meet Disclosure Expectations in line with International Oil, Gas and Mining Standard
EITI Board should bar representatives from delinquent companies like Exxon and Chevron from serving on the Board.
Today, after months of pressure from PWYP-US, Oxfam America, other allies, and all civil society representatives on its Board, the Extractive Industries Transparency Initiative (EITI) released a key annex underpinning its Assessment of adherence to the Expectations for EITI supporting companies detailing which of its Supporting Companies are failing to meet the organization’s disclosure expectations.
Of the 61 active EITI Supporting Companies, 23% are failing to publicly disclose taxes and payments, as per Expectation 2, an expectation core to the EITI’s mandate and one that has been central to the development of the EITI almost two decades ago. Included amongst these delinquent companies are US oil majors Exxon Mobil, Chevron, and ConocoPhillips. We also note that 87% of mining companies have made these disclosures compared to only 67% percent of oil and gas companies.
Notably, Exxon and Chevron both occupy seats on the EITI governing board, despite a history of systematically undermining the global standard on payment disclosures. Exxon and Chevron are the only companies represented on the EITI Board who are listed as not achieving Expectation 2.
In a statement, Interim Director of PWYP-US, Carly Oboth, said:
“PWYP-US welcomes the publication of the EITI’s assessment for each of the Supporting Companies across the eight Company Expectations. This release is a step in the right direction, but as the EITI acknowledges, the data highlights a clear need for further action to hold Supporting Companies accountable. This includes: clarifying the Company Expectations; undertaking regular public assessments in order to measure progress; and implementing measures to hold Supporting Companies accountable.
Oil and gas companies like Exxon and Chevron have failed to uphold the global transparency standard they committed to support. This assessment proves that while these companies have reaped the reputational benefit of participating in this global reporting initiative, their actions betray the EITI’s most fundamental objective: transparency.
The EITI Board’s lack of any concrete action to penalize delinquent companies jeopardizes the initiative’s credibility. The Board must sanction companies that violate the Company Expectations and obstruct the EITI’s valuable mission.
We consider it fundamentally untenable for the EITI to be led by a Board composed of members who refuse to disclose their payments in line with the Standard and work against its implementation. All Supporting Companies, and particularly those that are represented on the EITI Board, must ensure that the Initiative’s credibility is not weakened by the least transparent among them. Otherwise, it will be clear that this global transparency initiative has become a victim of corporate capture.”