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...A Canadian Appeal for Global Transparency in the Oil, Gas and Mining Industries
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The second edition of APERIO, the PWYP-Canada newsletter is now available in both french and english.
This edition of APERIO focuses on the EITI in Canada, and features a message from the PWYP-Coordinator, information on the Canadian government’s role in the EITI, information on the latest position paper released by PWYP-Canada, a PERSPECTIVES article by Talisman Energy discussing their support for the EITI, a Media Watch section, and an article calling on Nexen to support disaggregated data in the efforts to establish the EITI in Yemen.
For the english version, click here.
For the french version, click here.
United States Congress Passes Landmark Law for Oil and Mining Transparency
On July 16th 2010, the United States Congress passed a crucial law entitled the Dodd-Frank Wall Street Reform and Consumer Protection Act, which among other things will see oil, gas and mining companies registered with the U.S. Securities and Exchange Commission publishing how much they pay to foreign countries and the U.S. government.
For more information, access the PWYP press release.
Launch of the first PWYP-Canada Position Paper: Canadian Implementation of the Extractive Industries Transparency Initiative
On July 15th 2010, PWYP-Canada launched its first position paper Canadian Implementation of the Extractive Industries Transparency Initiative. The paper recognizes the Canadian government's efforts to support the EITI, but argues that full implementation of the EITI is necessary to ensure greater transparency in the extractive sector.
To access the position paper, click here.
Crucial opportunity in campaign for country by country reporting
Pushing for a new International Financial Reporting Standard for the oil, gas and mining industries
A new global standard for extractive company reporting is under development right now. It has the potential to make companies publish what they pay for oil, gas and minerals and provide information which is essential to fighting tax evasion and corruption.
Bill C-300 : Testimony of Karin Lissakers, Director of the Revenue Watch Institute before the Foreign Affairs and Development Committee
In February 2009, Canadian MP John McKay introduced a private members' bill that would impose tighter controls on the provision of government support to Canadian extractive companies. Numerous studies have highlighted the significant environmental and human rights impacts of oil, gas and mining operations overseas. The 2005 report by the Parliamentary Standing Committee on Foreign Affairs and International Trade (SCFAIT) drew attention to the fact that some Canadian extractive companies which are responsible for adverse impacts receive financial and political support from the government.
Bill C-300 reserves eligibility for government support to those extractive companies that comply with environmental, social and human rights standards, and covers services provided by Export Development Canada and the Department of Foreign Affairs and International Trade. The Bill also covers investments made by the Canada Pension Plan in extractive companies.
On May 25th 2010 Karin Lissakers, the Director of the Revenue Watch Institute testified before the Foreign Affairs and Development Committee. Lissakers outlined the importance of Bill C300 in light of the recent global movement towards higher standards and responsible business practices for companies in the extractive sector. Recognizing the crucial role that Canada plays in the global mining industry, she urged the Canadian government to enact Bill C300.
For a copy of Karin Lassikers testimony, click here.
To view Bill C-300, click here.
Ontario Legislature Review
On April 16th the Ontario Legislature unanimously passed a motion proposed by Liberal MPP Laurel Broten that called for a review of the current reporting standards of the Ontario Securities Commission (OSC), one that was to include both comprehensive stakeholder consultations and recommendations for enhanced disclosure. A report on the review, along with next steps to be taken, was presented to the Minister of Finance on December 18th 2009.
PWYP-Canada encourages the efforts to review the current reporting standards of the Ontario Securities Commission (OSC) but would like to highlight that the report was created with the intent of increasing protection for investors. As a result, the recommendations listed in the report do not sufficiently address the ethical component of responsible investing. Further analysis of current reporting standards should continue, and should include additional consideration relating to ethical investing.
“Greater transparency, or disclosure, of environmental and social factors is a practical, affordable and feasible method of improving the quality of the information investors use to assess the investment options available to them.” – Peter Chapman, Executive Director of SHARE
“The process of rigorous CSR reporting encourages improved sustainability performance. At the same time, it meets expanded stakeholder needs for transparency and evidence of genuine company CSR commitment.” – Adine Mees, President and CEO of Canadian Business for Social Responsibility
US Legislation
PWYP members, particularly those in North America and in Europe, have been working to support regulatory measures that would strengthen and advance the agenda of resource revenue transparency. In the United States Congress, two Acts have been proposed relating to resource revenue transparency, including the EITDA and the Energy Security Through Transparency Act of 2009. If passed, the Acts would apply to the vast majority of major extractive companies, including 9 out of ten of the biggest international oil companies and 8 out of ten of the top mining firms.
Extractive Industries Transparency Disclosure Act (EITDA)
In 2008, a bill was introduced in the United States Congress that would require companies to publish the payments they make to foreign governments for oil, gas and minerals. The information would be included in financial statements that are already required by the SEC. This would apply to both American and international companies listed with the SEC, covering the vast majority of the largest oil, gas and mining companies in the world.
Energy Security through Transparency Act of 2009
On September 23rd, 2009, the Energy Security through Transparency Act of 2009 was introduced by a bipartisan coalition of Senators Richard Lugar (R-IN), Ben Cardin (D-MD), Charles Schumer (D-NY), Roger Wicker (R-MS) and Russ Feingold (D-WI). The bill would require energy and mining companies to reveal how much they pay to foreign countries and the U.S. government for oil, gas, and other minerals.
Canada should adopt U.S. legislation which sheds light on oil and mineral revenues
OTTAWA - Canada must follow the example set by the U.S. Congress and adopt ground-breaking legislation that forces companies to reveal their financial dealings here and abroad, says a Canadian organization that works to improve transparency and accountability in resource extraction industries.
"Canada is a global leader in the energy and mining sectors, but not when it comes to demonstrating corporate openness," said Ousmane Dème, Publish What You Pay-Canada Coordinator. "It's time Canada lives up to its commitment to promote transparency in extractive industries by adopting similar rules as our largest trading partner."
To read more, click here.