The ethos Foundation has joined 36 signatories in signing an investors statement on transparency in the oil and mining sectors. The aggregate value of the funds under management of the investors is more than EUR 2,600 billion. Such unprecedented support is indicative of financial institutions' growing interest in the link between transparency and good governance, and more specifically, in problems arising from corruption. In fact, the World Bank considers corruption to be the main obstacle to economic and social development in developing countries. It also plays a major role in the destruction of natural resources when used illegally.
The joint investors statement calls upon companies in the extractive industries sector to play an active role in the Extractive Industries Transparency Initiative (EITI), an initiative launched by the United Kingdom at the 2002 Earth Summit in Johannesburg, and endorsed by the recent G8 Summit in Evian. All companies and governments concerned by contracts relating to the extraction of mineral resources are urged to comply with common principles against corruption by raising their standards of transparency. EITI seeks to establish principles on the disclosure of revenues paid to host governments by the companies concerned, without breaching contract confidentiality. In particular, it has been proposed that global revenues received by host countries be disclosed under the auspices of the IMF. Thus, the total revenue received from multinationals would appear in National Accounts and, as a result, revenues generated from the extractive industries would be used for the benefit of the host country's population and not to fuel corruption.
Amongst the other signatories of the joint investors statement are European and North American pension funds and asset management companies, including CalPERS, Domini Social Investments, Fidelity Investments, Legal & General Investment Management, Merrill Lynch Investment Managers, the New York State Common Retirement Fund, PGGM, State Street Global Advisors, Storebrand and Universities Superannuation Scheme.
If you would like to receive the complete press release issued by the signatories of the joint investors statement, please contact info@ethosfund.ch
