Thread by @DanielGMule

Investors + resource-rich countries + civil society ALL want to see greater corporate accountability for #oil #gas & #mining co's commitments to #transparency.

So why does that seem so hard to achieve at the global #EITI Board mtg this week?

THREAD🧵

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Quick history:
The Extractive Industries Transparency Initiative #EITI grew out of civil society calls since the late '90s for mining, oil & gas companies to #PublishWhatYouPay to governments around the world.

The idea was to shine a🔦on corruption +💸💸flows in the sector.

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In 2002-2003, @EITIorg was born, as “an initiative built on the notion of equal transparency from the governments and the companies” with participation from representatives of governments, companies, and civil society organizations.

eiti.org/history

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By 2005, it was clear what was needed: “Regular publication of all material oil, gas and mining payments by companies to governments ('payments') and all material revenues received by governments from oil, gas and mining companies ('revenues').”

This is the 💓 of #EITI

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EITI grew, w/ new req'ts in 2009, then the EITI Standard in 2013.

Major capital markets noticed. USA enacted a landmark law in 2010 to require extractive companies to disclose ALL payments to govts globally.

Laws followed in EU, Canada, UK, Norway, Ukraine, Switzerland.

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But curiously, within EITI, the focus remained on disclosures in and by EITI Implementing Countries. These countries – overwhelmingly in the Global South, with nearly half of them in #Africa – can be kicked out or suspended for failing to comply with the EITI Standard.

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The companies, on the other hand, are largely headquartered in OECD countries, and they face no such consequences for non-compliance.

And yet they still reap a reputational benefit from calling themselves "EITI Supporting Companies" even if they don't comply.

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Of course, some companies know there are no consequences – and act accordingly!

#Exxon & #Chevron – both represented on @EITIorg’s Board (thus LEADING the Initiative) – have repeatedly lobbied fought both EITI-aligned rules to implement the US law and US EITI implementation.

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At times, it's even seemed like there might be a possibility for some accountability for these actions.

bloomberg.com/news/articles/…

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After all, why should the @EITIorg permit #Exxon and #Chevron to sit on the Board while refusing to make the disclosures at the 💓 of EITI and undermining transparency around the world?

CC: @AubreyMenard politicsofpoverty.oxfamamerica.org/exxonmobil-say…

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But despite 2 civil society complaints, no concrete action has resulted.

Thankfully, Chair @HelenClarkNZ made clear that @EITIorg Board would “continue to address the concerns underlying this complaint” by updating Company Expectations by Oct 2021.

eiti.org/news/statement…

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...But the @EITIorg Board failed to reach consensus on strong Company Expectations w/ consequences at its Oct 2021 meeting.

Why? Well, it wasn’t bc there weren’t clear ideas about how to address the gaps in corporate accountability.

@OxfamAmerica: oxfamamerica.org/explore/resear…

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And civil society reps were clear:
They urged action on Company Expectations bc of “a small, but influential, cohort of companies on the EITI board” w/ a “pattern of behavior” involving “Reputational open-washing” & “Non-compliance with EITI”

eiti.org/news/statement…

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So were EITI Implementing Countries. In June-July, they "also called for urgent action by the Board, to not only clarify and strengthen the company expectations, but also to ensure adequate sanctions in cases of non-compliance.”

eiti.org/news/statement…

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Evidently, the group of EITI companies (not other stakeholders) were the ones resisting stronger corporate accountability.

Since EITI data already showed 77% were disclosing payments to govts in all countries where they operate, this was striking.

reuters.com/business/energ…

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At EITI, the mining, oil, & gas companies speak as a bloc. But are all of the companies -- or even a majority -- opposed to accountability for their commitment to transparency? And why?

It's hard to tell.

So we at @OxfamAmerica asked them.

business-humanrights.org/en/latest-news…

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Answers have been limited. Instead of responding to Qs, they mainly defer to the EITI process. But this is a process that has failed to deliver any meaningful corp accountability even 2 decades in.

Are companies suggesting we do the same thing & expect different results?
🤔

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In contrast, investors like @emi_alliance HAVE spoken up.

They see @EITIorg as a marker of oil, gas & mining companies' commitment to #transparency but stress that “a company’s commitment to extractives payment transparency should not change from one country to the next."

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"...We believe that any non-compliance [w/ the global payment disclosure expectation]—whether explained or not—undermines EITI’s position as the most effective internationally accepted standard for transparency in the oil, gas, and mining sectors..."

emia.org/sites/default/…

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.@emi_alliance: “...It is in the best interest of EITI, as well as investors that use its data, that supporting companies comply with all of the supporting company expectations, and if not, that they face consequences."

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Civil society, govts, & investors aren't always aligned.

But we're ALL calling for strong #EITI Company Expectations, with consequences NOT loopholes.

This week @EITIorg faces a choice: address corp accountability or succumb to the corporate transparency obstructionists.

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