Close

Building Trust through Transparency

Recently, Newmont was named to the Dow Jones Sustainability World Index (DJSI) for the seventh consecutive year. We are proud to be recognized as a leader in the areas of sustainable economic, environmental and social performance because we understand this performance – and our efforts to continually improve – are central to our future success.

x-default
Formal and informal meetings provide opportunity for transparent dialogue with local communities.

Newmont voluntarily participates in various partnerships and programs that provide a means for measuring our performance, as well as a framework for action and a forum to learn from others. One such program is the Extractive Industries Transparency Initiative (EITI), a multi-stakeholder coalition of governments, companies, investors, civil society groups and international organizations.

Mining and other resource activities can be catalysts for economic and social development in emerging economies. However, the lack of accountability and transparency in the quantity and timing of payments to governments and how these revenues are distributed can contribute to corruption and conflict.

Creating-sustainable-economic-growth-in-Ghana
Creating sustainable economic growth in Ghana.

To address this problem, the EITI was formed in 2002. And in 2003, the EITI agreed on Principles that aimed to ensure that a country’s natural resources benefit all its citizens. Today, the EITI standard promotes transparency regarding payments by oil, gas and mining companies to governments, as well as transparency on how these revenues are allocated. Azerbaijan became the first country compliant with the standard in 2009. Today, 25 countries are compliant while an additional 16 countries – called Candidate countries – are implementing the EITI, but have not yet met all requirements.

As a participant in the EITI since 2009, Newmont helps support EITI implementation in the countries where we operate. Currently, Ghana and Peru are EITI Compliant countries, and Indonesia is a Candidate country. In 2011, the United States committed to implementing the EITI, and Australia announced it would undertake an EITI pilot. Newmont is an active member of the U.S. multi-stakeholder group representing the industry sector. To date, more than 100 EITI country reports, detailing more than $700 billion in revenues, have been published.

When both countries and companies commit to greater transparency, everyone benefits. The EITI helps:

  • Citizens receive reliable information that holds the government and companies accountable for the revenues generated from resource activities in their communities;
  • Countries strengthen accountability and governance, which promotes economic and political stability; and
  • Companies, such as Newmont, mitigate political and reputational risk.

The EITI constantly strives to advance its efforts, and in May 2013, adopted an improved EITI standard at the EITI Global Conference. Highlights of the updated standard include making the reports more understandable and providing additional disclosure about payments.

At Newmont, we know our success is directly correlated with our ability to build and maintain constructive, trusting relationships with communities, governments and other key stakeholders. And we are pleased to be part of an initiative that allows us and others in the extractive industries to build this trust while also helping to improve governance in resource-rich countries.

Comments

There are no comments. Be the first to comment.

Post a Comment

Your email address will not be published. Required fields are marked *