Wealth from natural resources can lead to economic growth and social development in a country. However, failing to disclose information about wealth and payments and revenue flows between corporate sector and governments can increase the risk of distrust, weak governance and conflict.
Extractive companies are particularly exposed to the risks posed by operating in environments with poor governance standards, transparency and corruption. This is a business risk and a risk for us as investors in these markets and companies.
To promote better standards, accountability and disclosure around the extractives industry sector and management of natural resources we are an active member of the Extractive Industries Transparency Initiative (EITI), a multi-stakeholder coalition of governments, companies, investors and civil society organisations.
The EITI is a global standard for the governance of a country’s oil, gas and mineral resources
Together with more than 90 global investment institutions that collectively manage over USD 19 trillion, Nordea is a signatory to the EITI Investors’ Statement on Transparency in the Extractives Sector and since 2016 a member of the EITI board represented by Sasja Beslik, Head of Sustainable Finance.
When implemented, the EITI ensures transparency on how the country’s natural resources are governed from how the rights are issued, to how the resources are monetised, to how they benefits the citizens and the economy. Countries implementing the EITI disclose information on tax payments, licences, contracts, production and other key elements around resource extraction. The standard is implemented in 51 countries around the world.
More interested? Read the full Investors’ statement on transparency in the extractives sector
The EITI ensures a level playing field. All extractive companies in the participating countries are required to disclose the same information. As investors, this gives us a great foundation for our investment decisions. While companies also benefit from an improved and more stable investment climate in which they can more effectively engage with citizens and civil society.
Over 90 major companies involved in oil, gas and mining are committed to supporting the EITI, through operations in implementing countries, international-level commitments and industry associations.
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