Piping Profits: Mapping the Extractive Industries corporations
Most intriguing. Here are some key take-outs from the report:
- Ten of the world’s most powerful Extractive Industry Giants with declared revenues of $1.8 trillion control 6,038 subsidiaries, with over a third (2,083) incorporated in Secrecy Jurisdictions.
- The global Extractive Industry’s favourite place to incorporate by far is the US state of Delaware with 15.2% of all subsidiaries located there.
- The second favourite Extractive Industry Company (EIC) Secrecy Jurisdiction is the Netherlands, where 358 subsidiaries belonging to EI giants are based [TJN: also note our earlier blogs on the Netherlands' NRC newspaper reporting, which identifies a lot of information about extractive industries companies].
- Chevron is the most opaque EIC major in this study. 62 percent of its 77 subsidiaries are located in secrecy jurisdictions; ConocoPhillips is next, with 57 percent of its 536 subsidiaries incorporated in secrecy jurisdictions.
- Over 56 percent of the 783 subsidiaries of three North American oil majors (Chevron, Conoco and Exxon) are incorporated in secrecy jurisdictions.
- Glencore International AG is the most opaque mining company in the Piping Profits survey with 46% of its 46 subsidiaries incorporated in Secrecy Jurisdictions.
The project features Bolivian and Ecuadorian journalists and campaigners who set out to get key financial and operational question to test whether country-by-country reporting is needed.
The project creates a Web-based database which maps every subsidiary and its incorporation location owned by:
- Royal Dutch Shell
- Anglo American
- Barrick Gold Corp
- BHP Billiton
- Glencore and
- Rio Tinto
The Guardian carries the story here, and notes that:
"The definition of a secrecy jurisdiction was based primarily on three sources: a list of offshore financial centres published by the International Monetary Fund; a list drawn up by the US tax collection body; and a secrecy index by the non-governmental organisation the Tax Justice Network."Note also that our next Financial Secrecy Index will be coming out very soon.