Public reports

Statutory reporting obligation for extractive sector companies (BilRUG)

  1. Balance sheet total of €20 million.
  2. Net turnover of €40 million.
  3. An annual average of 250 employees.

Similarities and differences in the reporting obligation as per EITI

In addition to the reporting obligations pursuant to §§ 341q et seq. HGB, certain financial flows of the extractive industries are disclosed via the EITI (see Quality assurance procedure). The reporting requirements under commercial law largely correspond to those of the EITI. However, there are also differences.

One fundamental difference between the reporting obligations stipulated by the HGB and the EITI lies in the extent of the reporting. EITI stipulates that the participating companies from the extractive sector publish all significant payments they make to government agencies. In contrast to the HGB, the material payments are not exhaustively listed by the EITI and must be clarified in the course of the EITI process (see Quality assurance). The EITI standard does not provide for a distinction between payments above or below the limit of at least €100,000 annually. The stakeholders of the German EITI have agreed to adopt the materiality threshold of § 341t(4) HGB.

In contrast to the HGB provisions, EITI relies by default on the mutual disclosure of the payment flows for quality assurance purposes. Therefore, the respective government agency also had to grant an insight into its income from the extractive industry. In this context, one of EITI’s main concerns is to make the payment flows generally available in the form of open data, thereby supporting the public debate.

At the request of the EITI Board and the International EITI Secretariat, the D-EITI is participating in a pilot project on the quality assurance of disclosed payments as part of the 3rd D-EITI Report. This pilot project will replace the current EITI model of matching payments from extractive companies with government revenues with an alternative method. This procedure builds on publicly available information on the payments made by extractive companies. In this year’s report, the structure, legal framework and safeguards will be comprehensively described and assessed by the Independent Administrator to ensure the quality of these payments. Besides, the report describes the current results of the actual audits of the public coffers to which payments are made at the federal, state and municipal levels.

D-EITI

HGB

materiality threshold

€100,000 per payment

€100,000 per payment

Company size criteria*

Total assets: €20 million Net
sales: €40 million
250 employees

Total assets: €20 million Net
sales: €40 million
250 employees

Overview of how the resource sector works
 

About context report
 

x

Cross-interest dialogue on the contribution of the raw materials sector in Germany
 

About multi-stakeholder group

x

Is reporting mandatory?
 

No, no sanctions for
companies; possibly jeopardizing the EITI status

Yes. Disclosure can be enforced by fines.
 

* A company is considered “large” by the legislator if it exceeds at least two of the three criteria stated in the table on two successive balance sheet dates (section 267(3) sentence 1, (4) sentence 1 HGB).