The Competitiveness (Internal Market, Industry, Research and Space) Council of the European Union, has raised country-by-country reporting by mining and oil and gas companies as part of its conclusions on tackling the challenges on raw materials and in commodity markets.
In the conclusions from a meeting held in Brussels on 10 March 2011, the Council:
- Called for continued support to the Extractive Industries Transparency Initiative (see www.eiti.org), the sharing of best practices with the World Bank, the International Monetary Fund and regional development banks, as well as promoting transparency, good governance and sustainability standards throughout the raw materials supply chain in, amongst other things, EU development instruments
- Invited the European Commission to come forward with initiatives, in consultation with Member States and relevant stakeholders, on the disclosure of financial information by companies working in the extractive industry, including the possible adoption of a country-by-country reporting requirement, International Financial Reporting Standards (IFRS) for the extractive industry, and the monitoring of third-country legislation.
The IASB's Discussion Paper on Extractive Industries, published in April 2010, included the 'Publish What You Pay' (PWYP) proposals which called for country-by-country reporting. The IASB is yet to make a decision whether or not to take the Extractives Activities project onto its agenda. The implementation of the United States Dodd-Frank Wall Street Reform and Consumer Protection Act requires those engaged in the commercial development of oil, natural gas or minerals to include information about payments they or their subsidiaries, partners or affiliates have made to the US or a foreign government relating to the commercial development of oil, natural gas, and minerals.
Click for Council Conclusions from meeting on 10 March 2011 (link to the Council of the European Union website).