Search

Begin New Search Topic Corruption Publishing Institution Natural Resource Governance Institute

1. Responsible Exit Principles for Oil and Gas Companies

Author:
Nicola Woodroffe and Erica Westenberg
Publication Date:
09-2024
Content Type:
Policy Brief
Institution:
Natural Resource Governance Institute
Abstract:
Asset transfers in the oil and gas industry are not new. Yet, as the energy transition accelerates, there is a growing risk that oil and gas companies sell assets in response to pressures to decarbonize. However, transferring assets to operators with lower standards can lead to higher emissions and increased risks. This briefing offers a framework to guide these transactions and ensure that environmental and operational integrity is upheld. Designed for use by a range of stakeholders, these principles set out best practices to help companies manage financial, legal, environmental and reputational risks during asset transfers. They were developed with input from representatives of the oil and gas industry; investors, the financial, legal and accounting professions; the insurance industry; standard-setting bodies; academia; and civil society. All stakeholders can adopt and refine these standards to support a responsible, low-emissions future and harmonize regulatory practices across the industry.
Topic:
Corruption, Environment, Oil, Gas, Accountability, Fossil Fuels, and Energy Transition
Political Geography:
Global Focus

2. Tax Avoidance, Tax Evasion and Trade Misinvoicing: Risks to Senegal’s Mining Sector

Author:
William Davis
Publication Date:
09-2024
Content Type:
Special Report
Institution:
Natural Resource Governance Institute
Abstract:
Tax evasion, trade misinvoicing and multinational companies’ efforts to avoid tax are important risks in the extractive sector, especially in developing countries, including Senegal. Senegal’s extractive governance arrangements are strong in many areas, including in preventing multinational tax avoidance. However, there is cause for concern in two areas: misinvoicing of international trade (imports and exports), and cost inflation by subcontractors in the extractive industries. Quantitative estimates of trade misinvoicing suggest the former is a significant problem for Senegal (including for its mining sector), which could lead to the loss of 1–3 percent of the country’s tax revenues. Authorities in Senegal should address such risks, especially before the country begins large-scale oil and gas production. Unless they do so, revenues from the country’s hydrocarbon resources will be at risk. Measures that Senegal can take include strengthening the tax authorities—especially customs and auditing accounts of extractive industry suppliers.
Topic:
Corruption, Government, Gas, Mining, Minerals, Tax Evasion, and Public Finance
Political Geography:
Africa and Senegal

3. Scoping Study on Contract Transparency in Mongolia

Author:
Dorjdari Namkhaijantsan and Zoljargal Naranbaatar
Publication Date:
10-2024
Content Type:
Policy Brief
Institution:
Natural Resource Governance Institute
Abstract:
Mongolia’s mining sector plays a crucial role in the economy, contributing to revenue and jobs, but faces significant challenges around governance, corruption and transparency. This scoping study highlights the importance of contract transparency to ensure fair and accountable management of the sector. This report presents the scoping study on Mongolia’s contract transparency, undertaken by the Natural Resource Governance Institute (NRGI). The study was made possible with the support and funding of the Extractive Industries Transparency Initiative (EITI) International Secretariat and the European Bank for Reconstruction and Development (EBRD).
Topic:
Corruption, Governance, Mining, Transparency, and Contracts
Political Geography:
Mongolia, Asia, and Asia-Pacific

4. Scoping Study on Extractive Sector State Owned Enterprise Disclosures in Mongolia

Author:
Dorjdari Namkhaijantsan
Publication Date:
10-2024
Content Type:
Policy Brief
Institution:
Natural Resource Governance Institute
Abstract:
Mongolia’s state-owned mining enterprises are crucial to the economy but face transparency and governance issues. This scoping study examines the need for improved disclosures and stronger accountability in the sector. This report presents the scoping study on the disclosures of Mongolia’s state-owned mining enterprises, conducted by the Natural Resource Governance Institute (NRGI). The study was supported and funded by the Extractive Industries Transparency Initiative (EITI) International Secretariat and the European Bank for Reconstruction and Development (EBRD).
Topic:
Corruption, Governance, Economy, Accountability, Mining, Transparency, Contracts, and State-Owned Enterprises
Political Geography:
Mongolia and Asia

5. Behind the Schemes: Anticorruption Gaps in Mining Sector Certifications

Author:
Susannah Fitzgerald, Robert Pitman, Matthieu Salomon, and Phesheya Nxumalo
Publication Date:
11-2024
Content Type:
Special Report
Institution:
Natural Resource Governance Institute
Abstract:
Decisionmakers are increasingly looking to certification schemes to provide information on the sustainability of mining operations, yet these schemes have significant room for improvement regarding how they address corruption in their standards. The report assesses the content of the performance standards used by the Aluminium Stewardship Initiative (ASI), the International Council on Mining and Metals (ICMM), the Initiative for Responsible Mining Assurance (IRMA), The Copper Mark, and Towards Sustainable Mining (TSM). Schemes address some topics, such as revenue and payments and anticorruption procedures, relatively well; this may reflect the extent to which legislation and regulations address these topics. Schemes’ standards less frequently covered other issues, such as beneficial ownership and allegations of corruption. Many schemes, and the mining companies that use them, are missing an opportunity to assess the implementation of corporate-level anticorruption policies in mine-site assessments. The quality of certification schemes’ governance and assurance processes is essential to their effectiveness, yet many fall short of best practice. This undermines their credibility. Key governance challenges include the unbalanced representation of different interests within schemes and the risk of conflicts of interest in the auditing process. Decisionmakers risk becoming overreliant on certification schemes as indicators of responsible business conduct, which may be facilitated in part by industry influence over policymaking processes. Certification schemes are not a replacement for ongoing, robust due diligence into the environmental, social, and governance impacts of mining operations, including corruption, and the design and enforcement of robust regulatory frameworks. In a shifting standards landscape where there are efforts to both consolidate and review existing certification schemes, and a moment where the risk of corruption is heightened by growing demand for transition minerals, governments, mining companies, and certification schemes themselves must do more to address the topic of corruption. To do so effectively, they should focus their attention on solutions that will have the most impact in addressing this issue.
Topic:
Corruption, Environment, Governance, Accountability, Mining, Transparency, and Minerals
Political Geography:
Global Focus

6. Unfinished Business: Contract Transparency in the Extractive Industries Transparency Initiative

Author:
Robert Pitman and Aubrey Menard
Publication Date:
06-2023
Content Type:
Policy Brief
Institution:
Natural Resource Governance Institute
Abstract:
How are EITI-implementing countries faring with disclosure of oil, gas and mining contracts? The urgency of climate action and the complexity of the energy transition mean it has never been more important to be able to understand the deals made between companies and governments for oil, gas and minerals. For this reason, since 2021, implementing countries of the Extractive Industries Transparency Initiative (EITI) have been required to disclose the contracts between governments and extractive companies. This briefing by the Natural Resource Governance Institute (NRGI), Oxfam and Publish What You Pay (PWYP) surveys the contract disclosure practice of the 57 EITI-implementing countries to understand the extent of their contract disclosure practice. The briefing highlights trends, areas of insufficient disclosure and best practices. Readers can explore the data on a dedicated visual tool on the #disclosethedeal microsite.
Topic:
Corruption, Natural Resources, Accountability, Transparency, and Extractive Industries
Political Geography:
Global Focus

7. How Anticorruption Actors Can Use the EITI Standard

Author:
Charlotte Boyer and Matthieu Salomon
Publication Date:
12-2023
Content Type:
Policy Brief
Institution:
Natural Resource Governance Institute
Abstract:
In June 2023, the Extractive Industries Transparency Initiative (EITI) adopted the 2023 EITI Standard, which introduced significant new requirements that are either mandatory, expected or encouraged for implementing countries and companies, compared to the 2019 Standard In particular, the Standard now includes several obligations aimed at bringing more information into the public domain to advance gender equality, a just energy transition and anticorruption efforts. In 2021, building on an EITI-commissioned paper on the role of the EITI in fighting corruption, NRGI published two reports which showed how anticorruption actors could use EITI disclosures and spaces to advance their work, and recommended ways to strengthen the role and potential of the EITI for anticorruption purposes. In this new guide, NRGI updates its guidance for anticorruption actors—such as civil society, journalists, EITI Multi-Stakeholder Groups (MSGs) and government enforcement agencies—by outlining how the innovations of the 2023 Standard may help advance their efforts.
Topic:
Civil Society, Corruption, Stakeholders, Extractive Industries, and Standards
Political Geography:
Global Focus

8. Anticorruption Reform: Learning From Experience Across Sectors

Author:
Tom Shipley
Publication Date:
12-2023
Content Type:
Policy Brief
Institution:
Natural Resource Governance Institute
Abstract:
Even armed with a thorough approach for diagnosing corruption risk, anticorruption reformers may struggle to decide on next steps. Solutions to corruption problems do not always readily present themselves. The politicized nature of the issues also means generating real momentum behind reform can seem daunting. To help reformers with these choices, this NRGI briefing brings together eight case studies from other sectors. Cases were selected where positive changes can be demonstrated, even if the reform process is often incomplete. NRGI and the author also selected reforms which have potential replicability in the extractives sector, while recognizing that the details will look different. The case examples are organized by reform categories, as shown in the table below. The briefing presents a short summary of each case and provides links to further materials, as well as accurate and up-to-date a summary as possible in each case, with the caveat that circumstances frequently change in anticorruption work. The briefing concludes with five lessons on anticorruption reform which can be drawn from across these cases. The aim is to show what can be achieved and support users of the diagnostic tool to learn from experiences outside the extractives sector. The tool provides guidance to multi-stakeholder groups to identify forms of corruption harming a country’s extractive sector. Developing an anticorruption action plan is the sixth step in the tool and a key outcome of the diagnostic process. The action plan should follow from a broader discussion on strategy, through which users make choices on the issues to tackle, the people and agencies to engage, and how to brand reforms (see section 6.1. in the diagnostic tool, “Strategizing”). To ensure the action plan provides a sound basis for reform, users of the tool should apply the following key principles: Engage all relevant stakeholders throughout the action planning process to secure buy-in for reforms. Set clear and specific objectives which balance feasibility and ambition. Ensure clear ownership and incentives, and lines of responsibility for actions. Set clear indicators and conduct regular monitoring to assess progress. Build in flexibility and be prepared to adapt plans to changes in the context. The diagnostic tool includes templates and guidance for users when developing an action plan.
Topic:
Corruption, Reform, and Stakeholders
Political Geography:
Global Focus

9. Anticorruption Guidance for Partners of State-Owned Enterprises

Author:
Alexandra Gillies and Tom Shipley
Publication Date:
01-2022
Content Type:
Special Report
Institution:
Natural Resource Governance Institute
Abstract:
Drawing on broad stakeholder consultations, corruption case analysis and reviews of existing best practices, this guidance proposes concrete measures that international oil, gas a mining companies should adopt to reduce corruption risks in their work with state-owned enterprises (SOEs) in the oil, gas and mining industries. It also recommends measures SOEs can take to strengthen their anticorruption safeguards. The guidance for private-sector companies has five parts: Conducting due diligence on SOEs; Avoiding high-risk agents; Responding to political exposure; Safeguarding payments; Protecting joint ventures from corruption. The final section identifies corresponding recommendations for SOEs in each of these five areas.
Topic:
Corruption, Natural Resources, Business, Risk, and State-Owned Enterprises
Political Geography:
Global Focus

10. Preventing Corruption in Energy Transition Mineral Supply Chains

Author:
Natural Resource Governance Institute
Publication Date:
12-2022
Content Type:
Policy Brief
Institution:
Natural Resource Governance Institute
Abstract:
Experts have issued an urgent call for reforms to tackle the pressing issue of corruption in transition mineral supply chains. Corruption undermines key safeguards that protect local communities and the environment, redirects public money into private hands, and disrupts and delays production just when responsibly produced minerals are urgently needed to meet climate goals. Corruption in mineral supply chains threatens a just energy transition and risks derailing global efforts to fight climate change. The global fight against climate change relies on our ability to scale up low-carbon infrastructure, which requires more minerals than fossil-fuel-based systems.
Topic:
Corruption, Supply Chains, Minerals, and Energy Transition
Political Geography:
Global Focus