Abstract
The European Union’s 2013 Country-by-Country Reporting (CBCR) rules bring within the public domain information on corporate payments made to governments all over the world for the purpose of exploiting natural resources in the oil, gas, mining and logging sectors. In so doing, the CBCR rules enhance transparency in these sectors and aim to reduce tax avoidance and corruption in resource-rich countries. Arguably, they also contribute to the European Commission’s long-term strategy to secure sustained access to raw materials in the European Economic Area. The CBCR rules represent one of the only three binding regulatory frameworks that have been adopted at the EU level to implement the 2011 UN Guiding Principles on Business and Human Rights. Just as with the two other initiatives that came into existence (the Non-Financial Reporting Directive and the Conflict Minerals Regulation), the immediate impact on the competitiveness of corporations based in the EU was a key concern during the legislative process. This article uncovers the two strategies that were employed to overcome such concern and give the CBCR rules a ‘global’ character.
Highlights
The European Union’s 2013 Country-by-Country Reporting (CBCR) rules bring within the public domain information on corporate payments made to governments all over the world for the purpose of exploiting natural resources in the oil, gas, mining and logging sectors
The CBCR rules represent one of the only three binding regulatory frameworks that have been adopted at the European Union (EU) level to implement the 2011 United Nations (UN) Guiding Principles on Business and Human Rights
Just as with the two other initiatives that came into existence, the immediate impact on the competitiveness of corporations based in the EU was a key concern during the legislative process
Summary
UN Guiding Principles serve as the basis to foster consistency in multilateral as well as unilateral initiatives in which the EU is involved in the ‘business and human rights’ area.[4]. It is part of EU’s Raw Materials Initiative, adopted in 2008 with a view to promoting access to non-energy materials that are crucial to the long-term sound functioning of EU industries, and to economic growth and jobs in the long run.[52] The supply risks in the EU are mainly caused by resource concentration in combination with political and economic instability in a number of resource-rich countries. These risks are compounded by low substitutability in the EU and the rise of East and South Asian economies
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