Certification Mechanisms:
The Kimberley Process
The Kimberley Process Certification Scheme (KP) is an international government-led scheme set up to prevent trade in conflict diamonds. Launched in January 2003, and endorsed by the UN General Assembly and the UN Security Council, the scheme requires governments to certify the origin of shipments of rough diamonds to ensure that they are not from conflict zones.
Transparency Initiatives:
EITI - Extractive Industries Transparency Initiative
The EITI aims to improve transparency and accountability in resource-rich countries through the full publication and verification of company payments and government revenues from oil, gas, and mining.
PWYP - Publish What You Pay Campaign
The Publish What You Pay campaign calls for multinational and state-owned oil, mining, and gas companies to reveal the same basic information about net payments to a state in the developing world. These payments include: Royalty payments denominated as a percentage value of production; Bonus payments on signing a contract, on the location of commercial mineral deposits, or on reaching certain production levels; Corporate income tax, paid on income after permitted deductions for operating, exploration and interest costs, and depreciation of assets; Other taxes including withholding tax on dividend payments, excise tax, customs duties, sales/value-added tax and property tax.
Voluntary Standards and Corporate Codes of Conduct:
Voluntary Principles on Security and Human Rights
Established in 2000, the Voluntary Principles on Security and Human Rights, an initiative by governments, NGOs, and companies, provides guidance to extractives companies on maintaining the safety and security of their operations within an operating framework that ensures respect for human rights and fundamental freedoms. The Voluntary Principles (VPs) are the only human rights guidelines designed specifically for oil, gas, and mining companies.
Global Compact
Global Compact brings companies together with UN agencies, labour, and civil society to support universal environmental and social principles. The basis of the Global Compact are 10 universally accepted principles in the areas of human rights, labour,environment, and anti-corruption. Business, as a primary agent driving globalization, helps to ensure that markets, commerce, technology and finance advances in ways that benefit economies and societies everywhere.
Relevant Actors/Organisations:
Business:
International Council on Mining and Metals
International Council on Mining and Metals (ICMM) was formed in October 2001 to represent leading international mining and metals companies. In 1999, nine of the world’s largest mining companies launched the Global Mining Initiative that led to the commissioning of the Mining, Metals and Sustainable Development (MMSD) project which culminated in 2002’s Breaking New Ground report. ICMM was formed to take forward the agenda identified in the report towards achieving sustainable development (ICMM Sustainable Development Framework).
The Mining, Minerals and Sustainable Development Project (MMSD)
MMSD was a 2-year research and public consultation effort commissioned by the World Business Council for Sustainable Development (WBCSD), and sponsored principally by mining companies. The project was executed by the International Institute for Sustainable Development (IISD). In its final report Breaking New Ground, released in 2002, MMSD identifies the challenges faced by the minerals sector and proposes an agenda for change (MMSD 2002).
The OECD Guidelines for Multinational Enterprises
The OECD Guidelines set out a wide range of corporate standards. In 10 chapters, the documents defines criteria for corporate conduct in the following areas: compliance with national legislation, consumer protection, fighting corruption, establishment of environmental management systems, disclosure of information, compliance with tax legislation. The Guidelines are voluntary recommendations by the signatory countries to the corporations in adhering states, and they apply mainly to investment. Thus far, the Guidelines have not addressed the issue of environmental, social, or human rights responsibility in trade relations.
The UN Norms on Business Enterprises and Human Rights
In 1997 the UN Sub-Commission on the Promotion and Protection of Human Rights prepared a study on transnational corporations and human rights. Subsequently, a working group was set up on methods and activities of transnational corporations; in 1999 it set out to examine relevant conventions and declarations and to work out a proposal on norms for business enterprises. In 2003 the working group presented its draft for the UN Norms on the Responsibilities of Transnational Corporations and Other Business Enterprises with Regard to Human Rights (“UN Norms” in what follows). In August 2003 the UN Sub-Commission adopted the Norms by consensus and referred them to the UNCHR for further consideration.
World Gold Council
The World Gold Council represents the world's leading gold mining companies with the aim of stimulating and maximising the demand for, and holding of gold.
International Petroleum Industry Environmental Conservation Association
Established in 1974 after formation of the United Nations Environment Programme (UNEP), IPIECA provides one of the industry’s principal channels of communication with the United Nations. IPIECA is the single global association which represents both the upstream and downstream oil and gas industry on key global environmental and social issues.
IUCN, Mining, and Biodiversity
During the WSSD, the World Conservation Union (IUCN) and the International Council of Mining and Metals agreed to a dialogue to improve the performance of the mining industry with respect to biodiversity conservation and protected areas. The initial focus of the dialogue includes “best practice guidelines/ principles,” “reporting criteria” for the mining industry, and a review of the application of the protected areas category system to mining (IUCN 2003).
Financial Institutions:
World Bank / International Finance Corporation (IFC) Safeguards
The institution adopted its Environmental and Social Safeguard Policies and its Disclosure Policy in 1998. Since 2006, IFC has applied the Policy and Performance Standards on Social and Environmental Sustainability to all investment projects to minimize their impact on the environment and on affected communities.
Extractive Industries Review (EIR)
In 2001 the World Bank Group (WBG) initiated the Extractive Industry Review in response to criticism from NGOs about the WBG’s involvement in this sector. After several regional
workshops, intensive international debate, and the preparation of six case studies, the final report, “Striking a Better Balance”, was released in December 2003.
Equator Principles and Wolfsberg Principles
The Equator Principles are a voluntary set of guidelines developed by a group of leading banks for managing environmental and social issues in project finance lending. The banks apply these principles globally to project financing in all industry sectors, including mining, oil and gas, and forestry, and to all projects with a capital cost of $50 million or more. The Wolfberg Group’s (WG) is an association of 12 leading global banks that developed guidelines on anti-money laundering, Know-Your-Customer,and terrorist finance legislation, with the aim of helping banks meet the necessary legal requirements.
Others:
The World Summit on Sustainable Development (WSSD)
In 2002, in Johannesburg, South Africa, governments adopted an implementation plan for sustainable development, which committed states to: address the environmental, economic, health, and social impacts and benefits of mining; promote transparency and accountability for sustainable mining and minerals development; enhance the participation of stakeholders, including local and indigenous communities and women, in all stages of mining; and, foster sustainable mining practices by providing financial, technical, and capacity building support to developing countries and countries with economies in transition.
