UK EITI Compliance subgroup meeting note, 8th November 2023

Mike Earp                                         Mark Russell                 Martyn Gordon                

Mark Burnett                                   John Bowater                 Hedi Zaghouani                

Helmi Ben Rhouma                        Leo Kellaway                    Lisa Sviland (EITI International)

Mike Nash (Chair)

Update on main actions from the meeting on 11^th October 2023

• Link to “Powering up Britain” policy paper added to UK EITI website.
• Column added to Compliance Tracker to indicate where the onus lies for each new requirement.
• Discussion paper to highlight practicalities of providing some of the data for requirements 3.2 and 3.3 to be completed shortly. (Action: Mark Russell and John Bowater).
• Link to Emissions Trading Scheme to be provided shortly. (Action: Mike Earp).

EITI Standard Tracker – look at new requirements and encouragements:

4.10 Countries are required to disclose how they monitor companies’ costs and to publish, at minimum, summaries of final tax and cost audits. Implementing countries are expected to disclose final cost and tax audit reports, or summaries of those reports, including costs deemed as non-recoverable and costs deemed non-deductible and any additional revenues to be collected as a result. 

• HMRC raised concerns that the data requested was beyond what companies had originally agreed as part of the EITI process.
• It was agreed to look at what is already available from Companies House.
• HMRC is provide the international secretariat with concerns and key issues around disclosing the tax information requested. (Action: Leo Kellaway to provide a note to send to EITI International Secretariat).
• Guidance around this requirement would be available from the EITI International Secretariat later in 2024.

5.2 Where transfers between national and subnational government entities are related to revenues generated by the extractive industries and are mandated by a national constitution, statute or other revenue sharing mechanism, the multi-stakeholder group is required to ensure that material transfers are disclosed. Implementing countries must disclose the revenue sharing formula, if any, as well as any discrepancies between the expected transfer (calculated in accordance with the relevant revenue sharing formula) and the actual amount that was transferred between the central government and each relevant subnational entity. 

• The subnational data from Northern Ireland is already disclosed in the Revenue Allocations section of the UK EITI website.
• However, there are discrepancies between the NI and NTSA data. Mike Earp agreed to approach NI colleagues to discuss once UK Secretariat have sent NSTA email regarding this new requirement under the EITI Standard. (Action: UK Secretariat to write to Mike Earp regarding this new requirement under the 2023 EITI Standard so that an approach to NI colleagues can be made to discuss discrepancies).
• Links to subnational payments for Scotland (and Wales?) to be added to UK EITI website. (Action: Martyn Gordon to provide a link for Scotland).

6.3 Implementing countries are required to disclose employment in the public and private sectors of the extractive industries in absolute terms and as a percentage of the total employment. The information must be disaggregated by gender and occupational level, where available, and further disaggregated by company and project, as well as between local and foreign nationals. Companies are encouraged to disclose the gender pay gap.

• Some of this employment data is available, though not at a very granular level. Mike Earp agreed to investigate what is available, including looking at the OEUK Workforce Insight Report for oil and gas and what is available from Women in Mining for mining and quarrying. (Action: Mike Earp to check what data is currently available).

6.4 Countries and companies are now required to ensure that these environmental, social and gender impact assessments, as well as monitoring reports, are accessible to the public. Implementing countries are required to disclose an overview of relevant legal provisions and administrative rules governing environmental and social impact management and monitoring in the extractive sector. This must include information on rules regarding environmental permits and licenses, including social, gender and environmental impact assessments, as well as rehabilitation, decommissioning and closure programmes. It must also include information on the roles and responsibilities of relevant government agencies in implementing the rules and regulations. 

• BDO agreed to carry out some initial desk research to find out what is currently available from in-scope companies. (Action: BDO to carry out some initial research into the availability of ESG impact assessments).
• The contract and licence matrix pulled together by the working group looking at the corrective action from the last validation includes information on the relevant government agencies. (Action: UK Secretariat to load matrix onto the contract and licensing section of the UK EITI website).