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EITI Guidance note 13
Publication Type: 
Guidance note
Published Date: 
March, 2016

Guidance Note: EITI Requirement 4.1 (materiality)

Defining materiality, reporting thresholds and reporting entities

This guidance note refers to the 2016 EITI Standard


A fundamental element of the EITI is the disclosure of payments and revenues from oil, gas and mining. All implementing countries are required to disclose information about how much extractive companies pay in taxes, royalties and other payments and how much the government agencies have received. 

This data has to be comprehensive, i.e. give the reader a complete picture of the total revenues received from natural resources.

Experience with EITI implementation shows that many implementing countries have struggled to develop a systematic approach to defining “all material payments and revenues”.  In some cases, important revenue streams have been left out. In other cases, it has been difficult to determine whether all companies that make material payments disclosed their payments.

This is a particular challenge in countries where a number of small companies make payments that are individually insignificant, but collectively significant.

The EITI Standard seeks to address this through requirement 4.1 on comprehensive reporting. This note provides guidance to multi-stakeholder groups (MSGs) on defining materiality based on four steps

  1. develop a clear understanding of the revenue streams in the relevant extractive sectors;
  2. establish which revenue streams are material, and whether payment thresholds are needed;
  3. identify reporting entities;
  4. document the MSG’s deliberations.