Natural Resources and Violent Conflict - WaterWiki.net

70 swanson, oldgard, and lundenatural-resource industry.” 27 One possibility for having a greaterimpact on revenue transparency could be to expand the nine principlesof the Global Compact (as opposed to those of the TransparencyWorking Group) to include points related to transparency.To sum up, the UN Global Compact has potential strong and weakpoints:• The Transparency Working Group provides specific recommendationson resource revenue transparency.• The process is both inclusive and evolving.• However, the actions proposed by the Transparency WorkingGroup are not part of the principles that companies must endorse.• Association with the Global Compact does not require much efforton the part of companies and is not actively vetted; nonetheless,this fact may encourage more companies to participate.Global Reporting Initiative. The Global Reporting Initiative providesguidelines for companies (and other entities) to report their economic,environmental, and social performance. The initiative waslaunched in 1997 by the Coalition for Environmentally ResponsibleEconomies, responding to growing demands by stakeholders for“sustainability” information and to the ad hoc response of companiesto such demands, making information difficult to compare acrosscompanies or over time. The Global Reporting Initiative “seeks to makesustainability reporting as routine and credible as financial reportingin terms of comparability, rigour, and verifiability.” 28The Global Reporting Initiative developed its reporting guidelinesafter a consultative process involving different types of firms andstakeholders from around the world. This process is intended to becontinuous. The latest version of the guidelines was issued in 2002. 29In addition, the Global Reporting Initiative is involved in developingsector-specific supplements through initiatives such as the Mining,Minerals, and Sustainable Development Project. 30Use of the guidelines is optional and does not involve notifying theinitiative. The Global Reporting Initiative recognizes that companieswith little experience in reporting sustainability information may findit easier to introduce the standards gradually. Hence the guidelinesinclude an annex on their incremental application. In addition, organizationsare encouraged to add information beyond what is requestedin the guidelines. Although the Global Reporting Initiative promotesindependent verification and auditing—and provides an annex onverification—they are not a requirement. Neither does it audit organizationsor accredit others to do so.