EITI Reporting Templates and Guidance for companies
After consultation with industry in early 2021, the MSG agreed an earlier reporting process to cover payments in 2020 and beyond. This year, companies will have until 26 April 2024 to complete and return their templates to BDO UK. If templates are returned on time, reconciliation queries are planned to conclude by June 2024.
As in previous years, the data collection process will use an Excel reporting template. These templates and associated guidance are available below.
Payments or repayments at group level that total £86,000 or more for an in-scope payment stream should be reported using the relevant template.
Reporting for Oil & Gas companies
Oil and gas companies are asked to report the following payments for the calendar year:
- Ring Fence Corporation Tax and supplementary charge
- Petroleum Revenue Tax (including Advance Petroleum Revenue Tax)
- Energy (Oil and Gas) Profits Levy (EPL)
- Payments to The Crown Estate Commissioners relating to UK extractive industries
- Payments to Crown Estate Scotland relating to UK extractive industries
- Section 106 (Town and Country Planning Act 1990) payments in England and similar payments elsewhere in the UK under equivalent legislation
Key changes for 2023 process
The UK 2023 EITI Payments Report will be the first to follow the 2023 EITI Standard launched in Dakar in June 2023. This includes several new and refined provisions that enable countries to respond to the most pressing challenges in governing natural resource extraction. It strengthens EITI disclosures and governance requirements to improve understanding of the impact of the energy transition, addresses corruption risks, promotes gender equity and strengthens revenue collection. These changes are highlighted in the Summary that accompanied the updated EITI Standard. For UK companies, the MSG agreed to include seven of the new or refined provisions in the 2023 Payments Report. The remaining new provisions will be considered further and may be introduced in future years.
The table below shows these changes compared to the 2022 process:
N° | Template | Item | EITI provision | Requirement type (*) | Description |
|---|---|---|---|---|---|
1 | Beneficial ownership declaration form | Beneficial ownership threshold | 2.5.f Beneficial ownership | Encouraged | Please use the new threshold of 10% instead of 25%. |
2 | Beneficial ownership declaration form | Politically exposed persons (PEP) threshold | 2.5.f Beneficial ownership | Mandatory | Please disclose information on any PEP, regardless of their ownership level (the 2022 threshold was 5%) |
3 | Reporting Template (Template 8) | Anti-corruption policy | 1.2.b Company engagement | Expected | Please provide a URL link to your anti-corruption policy setting out how your company manages corruption risk, including the use of beneficial ownership data. |
4 | Reporting Template (Template 8) | Ownership structure | 2.5.g Beneficial ownership | Encouraged | Please provide a URL link to your ownership structure, including the full chain of legal entities leading to the beneficial owner(s). |
5 | Reporting Template (Template 8) | Financial statements | 4.1.e Comprehensive disclosure of taxes and revenues | Expected | Please provide a URL link to your latest audited financial statements (FS), or the main items (i.e. balance sheet, profit/loss statement, cash flow and effective tax rates) if FS are not available at country level. |
6 | Reporting Template (Template 8) | Environmental, social and governance (ESG) | 6.4.b Environmental and social impact of extractive activities | Mandatory | Please provide a URL link to your latest information about ESG and impact. (e.g. Annual Report, Sustainability Report, Environmental Statement, etc.). |
7 | Reporting Template (Template 8) | Gender pay gap | 6.3.a Contribution of the extractive sector to the economy | Encouraged | Please provide a URL link to your latest information about any gender pay gaps. |
(*) Terminology
Mandatory requirements: The requirement is mandatory and will be taken into account in the assessment of progress in meeting the EITI Standard.
Expected requirements: The MSG should consider the issue and document its discussions, the rationale for disclosure/non-disclosure and any barriers to disclosure. Validation will consider and document the discussions by the MSG.
Encouraged requirements: The requirement is optional. Efforts by the MSG will be documented in Validation but will not be taken into account in the overall assessment of progress in meeting the EITI Standard.
We hope that the information from 3 to 7 in the table above is already published on your website and will not require a significant amount of work.
*Please note that based on historical results of previous reconciliation exercises, the MSG agreed that petroleum licence fees and the OGA levy should be disclosed unilaterally by the North Sea Transition Authority (NSTA) from 2022 onwards. Therefore, companies are no longer requested to provide this data.
| Template for EITI reporting for oil and gas companies | Guidance on EITI reporting for oil and gas companies |
Reporting Mining & Quarrying companies
Mining and quarrying companies are asked to report the following payments for the calendar year:
- UK Corporation Tax
- Payments to The Crown Estate Commissioners relating to UK extractive industries
- Payments to Crown Estates Scotland relating to UK extractive industries
- Section 106 (Town and Country Planning Act 1990) payments in England and similar payments elsewhere in the UK under equivalent legislation
Key changes for 2023 process
The UK 2023 EITI Payments Report will be the first to follow the 2023 EITI Standard launched in Dakar in June 2023. This includes several new and refined provisions that enable countries to respond to the most pressing challenges in governing natural resource extraction. It strengthens EITI disclosures and governance requirements to improve understanding of the impact of the energy transition, addresses corruption risks, promotes gender equity and strengthens revenue collection. These changes are highlighted in the Summary that accompanied the updated EITI Standard. For UK companies, the MSG agreed to include seven of the new or refined provisions in the 2023 Payments Report. The remaining new provisions will be considered further and may be introduced in future years.
The table below shows these changes compared to the 2022 process:
N° | Template | Item | EITI provision | Requirement type (*) | Description |
|---|---|---|---|---|---|
1 | Beneficial ownership declaration form | Beneficial ownership threshold | 2.5.f Beneficial ownership | Encouraged | Please use the new threshold of 10% instead of 25%. |
2 | Beneficial ownership declaration form | Politically exposed persons (PEP) threshold | 2.5.f Beneficial ownership | Mandatory | Please disclose information on any PEP, regardless of their ownership level (the 2022 threshold was 5%) |
3 | Reporting Template (Template 8) | Anti-corruption policy | 1.2.b Company engagement | Expected | Please provide a URL link to your anti-corruption policy setting out how your company manages corruption risk, including the use of beneficial ownership data. |
4 | Reporting Template (Template 8) | Ownership structure | 2.5.g Beneficial ownership | Encouraged | Please provide a URL link to your ownership structure, including the full chain of legal entities leading to the beneficial owner(s). |
5 | Reporting Template (Template 8) | Financial statements | 4.1.e Comprehensive disclosure of taxes and revenues | Expected | Please provide a URL link to your latest audited financial statements (FS), or the main items (i.e. balance sheet, profit/loss statement, cash flow and effective tax rates) if FS are not available at country level. |
6 | Reporting Template (Template 8) | Environmental, social and governance (ESG) | 6.4.b Environmental and social impact of extractive activities | Mandatory | Please provide a URL link to your latest information about ESG and impact. (e.g. Annual Report, Sustainability Report, Environmental Statement, etc.). |
7 | Reporting Template (Template 8) | Gender pay gap | 6.3.a Contribution of the extractive sector to the economy | Encouraged | Please provide a URL link to your latest information about any gender pay gaps. |
(*) Terminology
Mandatory requirements: The requirement is mandatory and will be taken into account in the assessment of progress in meeting the EITI Standard.
Expected requirements: The MSG should consider the issue and document its discussions, the rationale for disclosure/non-disclosure and any barriers to disclosure. Validation will consider and document the discussions by the MSG.
Encouraged requirements: The requirement is optional. Efforts by the MSG will be documented in Validation but will not be taken into account in the overall assessment of progress in meeting the EITI Standard.
We hope that the information from 3 to 7 in the table above is already published on your website and will not require a significant amount of work.
*Please note that the UK EITI MSG has approved the exclusion of extractive-related payments to the Coal Authority for the purposes of UK EITI reporting because it believes that these payments are not sufficiently material relative to government revenues and their exclusion will not affect the comprehensiveness of the UK EITI report.
| Template for EITI reporting for mining and quarrying companies | Guidance on EITI reporting for mining and quarrying companies |
Reporting on Beneficial Ownership & Politically Exposed Persons
Companies are also asked to provide information relating to individuals that have a material influence on the company through their shareholding in the company, including individuals with political influence.
A guide on reporting is below and the information should be included in the Beneficial Ownership declaration form at the end of each template. Please note that the threshold for reporting has been reduced from 25% to 10%.
Guidance for reporting Beneficial Ownership information
Please could all extractive companies not providing details of their payments or repayments to the UK EITI Independent Administrator download the Beneficial Ownership declaration form here and return the completed version to them by 26th April 2024 at ukeiti@bdo-ifi.com
Confidentiality Waivers
Confidentiality waivers are required to confirm the participation of the Company (and its affiliates)in the UK EITI and consequently that HM Revenue & Customs (HMRC) is authorised to disclose details of taxes paid by the Company (and its affiliates) to the Independent Administrator. The waiver can be found below.
To contact BDO UK about completing reporting templates and reconciliation please email UKeiti@bdo-ifi.com
Tax Confidentiality Waiver template
Difference between EITI and the Chapter 10 of the EU Accounting Directive
There are two separate but complementary extractives transparency initiatives – one is the Extractives Industry Transparency Initiative (EITI) and the other is Chapter 10 of the EU Accounting Directive.
EITI is a global standard which ensures transparency of payments from natural resources.
EU Accounting Directive
Separate, but complementary to EITI is the EU Accounting Directive, which requires extractives companies to publish the payments they make to governments in all the countries where they operate. The intention is to give citizens the information they need to hold governments to account over how these huge sums of money are spent.
The requirements will apply to all EU listed companies and large registered extractives companies.