Extractive Industries Transparency Initiative (EITI) Standard (2023)

Requirement 3.1 (Exploration): the implementing country must disclose information about the exploration phase of the extractive sector including locations + activities + estimated volumes. Requirement 3.2 (Production): production data by commodity + by company + by project must be publicly disclosed. Total production volumes + value per commodity + per project + per company are required. Requirement 3.3 (Export data): export data by commodity must be publicly disclosed including total export volumes + value per commodity + per company. Export-data reconciliation with national customs + central bank + tax authority data is encouraged. The Section 3 disclosure regime is the foundation for the Section 4 revenue collection + Section 5 revenue allocation analysis - production + export data anchor the volume basis on which revenue figures can be cross-checked.

• Exploration / production / export data disclosure (annual EITI report + open data)
• Cross-reconciliation between company-reported + government-reported volumes
• Per-project disaggregation evidence (Requirement 4.7)

• Production data missing per-project / per-company disaggregation
• Export data not cross-reconciled with customs / central bank data
• Exploration data not disclosed where commercially material

Requirement 2.1 (Legal framework + fiscal regime): the legal framework + fiscal regime governing the extractive sector must be publicly available + understandable. Information requested includes a summary of the legal + regulatory + tax regime + the laws + regulations + agreements pertaining to the granting of licences + the registry of licences + the role of state-owned enterprises (SOEs). Requirement 2.2 (Contract + licence allocations): the implementing country must disclose information related to the awarding + transfer of licences during the reporting period including the technical + financial criteria assessed + non-trivial deviations + the recipients. Allocations must comply with national procurement + transparent allocation principles. Requirement 2.3 (Register of licences): the implementing country must maintain a publicly available register or cadastre system(s) including: lice

• Public-facing legal-framework summary + tax regime documentation
• Annual licence-allocation records with technical + financial criteria + recipients
• Online licence cadastre with all Requirement 2.3 data fields

• Legal framework not publicly available in accessible format
• Allocation criteria not disclosed or non-trivial deviations not explained
• Licence cadastre missing required fields (coordinates + duration + commodity)

Requirement 2.4 (Contract disclosure): the implementing country must comprehensively disclose all new + amended contracts + licences in the extractive sector as a default position with effect from 1 January 2021. Contracts granted + entered into + materially amended since 1 January 2021 must be public + accessible to the general public. Contracts entered into before 1 January 2021 should be disclosed unless there is a credible reason for confidentiality. The published contract must include: full contract terms (or summary if the implementing country has a credible reason); any annexes + appendices + amendments. The MSG should review the policy + procedure for contract disclosure + any exceptions invoked. The 2023 Standard tightens this requirement: contract disclosure is now the DEFAULT POSITION rather than the encouraged practice it was under the 2019 Standard.

• Public-facing contract repository
• Annual list of new + amended contracts since 1 Jan 2021
• MSG review of any non-disclosure with reasoning

• New contracts (post-1 Jan 2021) not disclosed without credible Article 2.4 reasoning
• Contract repository missing annexes / appendices / material amendments
• No MSG-level review of contract-disclosure policy + exceptions

Requirement 2.5 (Beneficial ownership): the implementing country must require + ensure that companies applying for + holding + having held an extractive licence + interest disclose information about their BENEFICIAL OWNERS. Definitions + thresholds: a 'beneficial owner' is a natural person who directly or indirectly ultimately owns + controls the corporate entity (commonly threshold-based at 5%-25% ownership / control depending on national-law implementation, with EITI recommending the most stringent applicable national threshold). Disclosure requirements: name; nationality; country of residence; level of ownership; means of ownership / control; date of acquisition + cessation; politically exposed person (PEP) status. The 2023 Standard strengthens requirement 2.5 by requiring: (a) public beneficial-ownership register or equivalent accessible disclosure mechanism; (b) data quality + verif

• Public beneficial-ownership register accessible to MSG + public
• Annual BO data quality + verification report
• Alignment evidence with national FATF R24 + R25 obligations
• PEP identification + heightened-scrutiny process

• BO data limited to government + not publicly accessible
• BO data not verified or aligned with national FATF AML obligations
• PEP status not identified + tracked
• BO data not updated annually + change-of-control not tracked

Requirement 2.6 (State participation): the implementing country must disclose information on the role of state-owned enterprises (SOEs) in the extractive sector including: SOE financial relationships with the government (revenues to government from SOEs + financial transfers from government to SOEs); SOE retained earnings + dividends paid + SOE-controlled subsidiaries; SOE governance arrangements including board composition + appointment process + remuneration framework. The disclosure includes any equity stakes + production-sharing agreements + carried interests + buy-back arrangements + first-refusal rights. Material SOE quasi-fiscal expenditures must also be disclosed under Requirement 6.2.

• SOE-government financial transfer disclosure
• SOE governance + board composition
• Equity + carried-interest + buy-back arrangements documentation

• SOE retained earnings + dividends not disclosed
• SOE governance arrangements opaque
• Material SOE-government financial flows excluded from EITI report

Requirement 7.1 (Public debate): the implementing country must ensure that EITI data is comprehensible + actively communicated + accessible to the public + that EITI implementation contributes to public debate on the management of the extractive sector. Requirement 7.2 (Data accessibility + open data) STRENGTHENED IN 2023: the implementing country must publish EITI data in OPEN DATA FORMAT (CSV + XLSX + structured) aligned with the EITI Open Data Reporting Standard + the EITI Summary Data Template. Data must be findable + accessible + interoperable + reusable (FAIR principles). Requirement 7.3 (Follow up on recommendations): the implementing country must follow up on Validation + Independent Administrator + MSG recommendations + monitor implementation outcomes. Requirement 7.4 (Outcomes + impact of implementation): the implementing country must annually assess the outcomes + impact of EI

• Annual EITI Report + summary data + open-data publication
• Multi-channel public communication evidence (events + media + civil society)
• Recommendations follow-up tracker + implementation evidence
• Annual outcomes + impact self-assessment

• Open data not published in FAIR-aligned format
• Recommendations follow-up tracker incomplete or stale
• Outcomes + impact assessment absent or pro-forma

Requirement 1.1: The government must be fully + actively engaged in the EITI process. Implementing countries are required to: (a) issue a clear public unequivocal statement of intent to implement EITI - the EITI commitment by the highest level of government (head of state / government / minister); (b) appoint a senior government official to lead implementation - typically a Minister or Senior Government Representative who serves as the EITI Champion + has the authority + autonomy + resources to carry out implementation; (c) commit to working with civil society + companies + the multi-stakeholder group (MSG). Government engagement must be sustained over time + survive changes in administration; the public statement of commitment should be reaffirmed on changes. Government engagement is the cornerstone of EITI legitimacy - without genuine government commitment EITI implementation cannot ac

• EITI Commitment letter / public statement by the highest level of government
• Senior Government Representative appointment + terms of reference
• Sustained engagement evidence + reaffirmation on administration changes

• Statement of intent issued but no senior official designation
• Senior Government Representative without operational authority + resources
• Commitment not reaffirmed on administration change

Requirement 1.2 (Company engagement): companies operating in the extractive sector must be fully + actively engaged in the EITI process, with the ability to participate in the design + monitoring + evaluation of the EITI implementation through autonomous + non-coerced participation in the MSG. Requirement 1.3 (Civil society engagement): an enabling environment for civil society representatives to engage in the EITI process must be in place + sustained, including: civil society representatives are able to engage in the EITI process; freedom of expression + freedom of association are respected; freedom of media to report on EITI implementation + extractive sector issues; civil society representatives are able to communicate with their constituencies + the public; civil society representatives are not subject to harassment + retaliation + violence + criminalisation for their EITI participat

• Company designation + autonomous selection process
• Civic-space risk assessment + monitoring
• Documentation of any retaliation / harassment + remediation
• Independent third-party civic-space assessments

• Company designation by government rather than industry
• Civic-space restrictions present without documented remediation
• Civil society representatives reporting harassment + retaliation

Requirement 1.4 (Multi-Stakeholder Group / MSG): the implementing country must establish a multi-stakeholder group comprising representatives of the government + companies + civil society, with: terms of reference + procedures publicly available; representation of all three constituencies in equal numbers; appropriate balance of expertise; constituencies select their own MSG representatives through an open + transparent process; women's representation - the MSG must work towards gender balance in line with the EITI Standard's gender + diversity commitment. The MSG is the operational nucleus of EITI implementation. Requirement 1.5 (Work plan): the MSG must agree + publish a work plan that is fully costed + aligned with the reporting + Validation deadlines + reflects national priorities + has been informed by an inclusive multi-stakeholder consultation. The work plan is reviewed + updated

• MSG terms of reference document
• Constituency selection-procedure evidence
• Gender + diversity composition reporting
• Annual work plan with cost estimates + KPIs

• MSG terms of reference outdated or partial
• Constituency representatives appointed by external party rather than selected by constituency
• Gender balance not pursued (no diversity reporting)
• Work plan not updated annually or lacking cost estimates

Requirement 5.1 (Distribution of revenues): the implementing country must disclose the share of government revenue derived from the extractive sector for the year + the distribution of those revenues across budget categories + budget lines (national + subnational). Requirement 5.2 (Subnational transfers): the implementing country must disclose any transfers between subnational government entities related to extractive revenues including the legal + actual amounts of subnational transfers + the formula used. Requirement 5.3 (Revenue management + expenditures): the implementing country must disclose information on revenue management policies + the role of any extractive-revenue funds (sovereign wealth funds + future generation funds + heritage funds) + the actual application of revenues to public expenditures. The Section 5 regime extends EITI's scope from RAW REVENUE DISCLOSURE (Section 4

• Annual disclosure of extractive sector contribution to government revenue
• Subnational transfer formula + actuals + variance analysis
• Sovereign wealth fund / heritage fund disclosures + governance

• Extractive revenue distribution opaque
• Subnational transfer formula not disclosed or actuals deviating from formula without explanation
• Sovereign wealth / heritage fund disclosures incomplete or absent

Requirement 4.1 (Comprehensive disclosure of taxes + revenues): government + company disclosures on all material revenue payments + receipts from the extractive industry, with comprehensive coverage of: production-entitlement payments (royalties + production sharing); profit + corporate income tax; signature bonus + production bonuses; concession + licensing fees + surface rentals; environmental + social contributions; in-kind payments. Bilateral disclosure + reconciliation is required from both government + company sides (the EITI reconciliation regime). Requirement 4.2 (Sale of the state's share of production): the implementing country must disclose information on sales of state's share of production + commodity-trading revenues including: terms of the sale (counterparty + product type + volume + value + date + payment terms); the proceeds + cumulative volume + value sold during the pe

• Government-side revenue disclosure (all material revenue streams)
• Company-side payment disclosure (consistent with government)
• SOE / SOC sale-of-production data disclosure
• Infrastructure / barter contract + valuation disclosure

• Material revenue streams missing
• Reconciliation discrepancies not investigated + reported
• Sale-of-production data not disclosed by SOE
• Infrastructure / barter arrangements treated as confidential

Requirement 4.4 (Transportation revenues): the implementing country must disclose transportation revenues collected by the government + SOEs (including pipeline + rail + road + port transit fees + tariffs) where material to the extractive sector. Requirement 4.5 (SOE transactions): the implementing country must disclose material transactions between government and SOEs + between SOEs + their subsidiaries + with extractive companies including: SOE financial flows; SOE dividends to government; SOE retained earnings + subsidies + financial guarantees from government; SOE quasi-fiscal expenditures (Requirement 6.2). Requirement 4.6 (Subnational payments): the implementing country must disclose payments by extractive companies to subnational government entities (state + provincial + municipal + local government) where material.

• Transportation revenue disclosure where material
• SOE transaction disclosure including dividends + subsidies + financial guarantees
• Subnational payment disclosure with payee + payor + amount

• Transportation revenues excluded without materiality justification
• SOE transactions not fully disclosed (e.g. financial guarantees omitted)
• Subnational payments not disclosed by destination authority

Requirement 4.7 (Level of disaggregation): EITI data must be disaggregated by INDIVIDUAL COMPANY + GOVERNMENT ENTITY + REVENUE STREAM + COMMODITY + PROJECT (where multiple projects under a single licence). Project-level disaggregation is the EITI 2023 default + is aligned with the EU Accounting Directive 2013/34/EU + the EU Transparency Directive Chapter 9 + 10 country-by-country payment reporting requirements + Dodd-Frank Section 1504. Requirement 4.8 (Data timeliness): EITI data must be published no later than 2 years after the end of the reporting period (the 24-month publication deadline). Requirement 4.9 (Data quality + assurance): the implementing country must ensure that EITI data is reliable through procedures + practices for data quality + reconciliation + with: (a) the data submission template approved by the MSG; (b) the standardised data quality + assurance procedures; (c) th

• Project-level disaggregated data evidence
• Data submission template aligned with EITI Standard 2023
• Independent Administrator reconciliation report
• MSG sign-off on data quality

• Data not disaggregated to project level
• Publication beyond 24-month deadline without MSG-approved deferral
• Independent Administrator reconciliation not performed or limited in scope
• MSG sign-off absent

Requirement 6.1 (Social + environmental expenditures): the implementing country must disclose material social + environmental expenditures by extractive companies that are mandatory by law + contract (e.g. community development funds + local content quotas + environmental remediation + clean-up provisions). Voluntary corporate social investment is encouraged for disclosure. Requirement 6.2 (Quasi-fiscal expenditures by SOEs): the implementing country must disclose material quasi-fiscal expenditures undertaken by state-owned enterprises (e.g. subsidies + below-market services + public infrastructure built by SOEs) that would otherwise be government expenditures. Requirement 6.3 (Economic contribution): the implementing country must disclose the contribution of the extractive sector to the national economy including: % of GDP; % of government revenue; % of exports; employment levels + work

• Social + environmental expenditure disclosure
• SOE quasi-fiscal expenditure inventory
• Economic contribution annual report
• NEW 2023 Requirement 6.4 climate + environment disclosure including GHG emissions + decommissioning provisions

• Mandatory social / environmental spending disclosed but voluntary corporate social investment missing
• Quasi-fiscal expenditures opaque
• Requirement 6.4 climate disclosures partial or absent (NEW 2023 requirement is most-commonly underperformed during transition)

Validation is the EITI assurance mechanism that assesses compliance with the EITI Requirements + outcomes of implementation. Implementing countries undergo Validation on a 3-year cycle (more frequent in case of suspended status). Validation procedure: (1) MSG-led self-assessment + Independent Administrator's report; (2) Independent Validator (formerly Validation Service) assessment against all 8 components of EITI Requirements (the 7 Section requirements + the Validation Component on outcomes + impact); (3) preliminary report; (4) MSG response; (5) Validator final report; (6) EITI Board decision. Status categories: 'high' / 'satisfactory' / 'meaningful' / 'inadequate' / 'no progress' on each component + an overall status of 'Fully Compliant' / 'Meaningful Progress' / 'Inadequate Progress' / 'Suspended' / 'Delisted'. The 2023 Standard introduces the 'EITI Outcomes + Impact Assessment' as

• Latest Validation report + scoring
• MSG response + follow-up on Validation findings
• Outcomes + Impact Assessment evidence
• Tracking of Board + International Secretariat outputs

• Validation cycle overdue or partial
• Validation findings not followed up or implementation evidence absent
• Outcomes + Impact Assessment not embedded in MSG processes
• No tracking of Board decisions affecting implementation