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Exxon, Chevron not disclosing payments to some governments -transparency group By Reuters

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© Reuters. FILE PHOTO – The Chevron logo (CVX), is seen in Los Angeles California, United States on April 12, 2016. REUTERS/Lucy Nicholson/File Photo

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By Timothy Gardner

WASHINGTON (Reuters) – U.S. oil majors Exxon Mobil Corp (NYSE:) and Chevron Corp (NYSE:) have failed to meet a core transparency standard set by the Extractive Industries Transparency Initiative, a global anti-corruption body on which the companies have board seats, EITI said on Wednesday.

Exxon and Chevron have declined to publicly disclose taxes and other payments they have made to governments in the countries where they operate that are not EITI members, the group said in a spreadsheet detailing member company https://eiti.org/news/eiti-publishes-data-on-adherence-to-supporting-company-expectationsadherence to its standards.

EITI is a Norway-based organization that was established two decades ago. The group has approximately 55 member countries. They use global standards to encourage open and accountable oil, gas, and mineral resource management to reduce corruption in all resource-rich areas.

India, Pakistan, Qatar and Pakistan are some of the countries Exxon operates in, but they do not belong to EITI. China and Angola were non-EITI country where Chevron operated. Angola used to be a member, but was suspended for political reasons.

ConocoPhillips, NYSE:), is another non-EITI member who does not reveal payments to other countries. The company has operated in China, Malaysia, and Libya.

The U.S. companies did not respond immediately to our requests for comment.

EITI released the information based on public data. This could increase pressure on companies already being criticized by shareholders, activists and legislators for their role in climate change-related greenhouse gas emissions.

This also shows a growing governance gap between U.S.-based major oil companies and European ones, which are generally seen as being doing better in transparency and climate.

According to the group, European-based firms BP (NYSE;), Shell (LON.) and Total are all required by law to publicly report their taxes and any payments they make to non EITI countries.

After pressure from Oxfam America and Publish What you Pay-US, EITI released the data.

The companies that are EITI members and make annual contributions to fund its management do not have to adhere to the standards.

Helen Clark, EITI Board chair, said that in July the oversight committee of the board would look into consequences for companies who do not meet group expectations. She did so without further explanation. EITI could consider this matter during its October meeting.

Clark stated Wednesday that EITI members will be able to “engage in dialog to improve transparency and corporate accountability” by publishing the names of companies not meeting expectations. Although there are still many questions to answer, she said it was important to encourage “a race to reach the top”, to exceed or meet the expected standards.

U.S. Securities and Exchange Commission (USSEC) will be considering next April the implementation of Dodd Frank, a Wall Street reform U.S. legislation that requires disclosures by mining and energy companies regarding payments to foreign governments.

The U.S. businesses supporting EITI are reaping the benefits of EITI participation, according to PWYP US. However, they do not meet the minimum expectations.

Carly Oboth (PWYP US interim director) stated that EITI must have transparency from all its members, including those who are on the board.

Oboth explained that it would be obvious that the global transparency initiative was a victim to corporate corruption.



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