1. Beneath the Surface: The Case for Oversight of Extractive Industry Suppliers
- Author:
- Robert Pitman and Kaisa Toroskainen
- Publication Date:
- 09-2020
- Content Type:
- Special Report
- Institution:
- Natural Resource Governance Institute
- Abstract:
- Large oil, gas and mining projects are usually associated with a few big names such as Shell, Exxon, Rio Tinto, Gazprom and Codelco. These are rights holders—companies that receive licenses from host governments to extract resources. Typically, however, lower-profile companies do much of the work to take natural resources out of the ground. These are suppliers—companies that provide the goods and services that make extraction happen. They range in size from multibillion-dollar international conglomerates to specialized or local firms that may only have a handful of employees. This report makes the case for greater oversight of extractive industry suppliers. It explains the economic significance of extractive industry suppliers and identifies the main stakeholders involved in supplier governance. It considers policy areas where the impacts of poor supplier governance play out and reviews how governments, rights holders, state-owned enterprises (SOEs) and suppliers are beginning to share information on the economic impacts of suppliers, how these disclosures feature in global transparency and reporting initiatives and what more can be done.
- Topic:
- Corruption, Natural Resources, Tax Systems, Coronavirus, Industry, COVID-19, and Revenue Management
- Political Geography:
- Global Focus