20 August 2021
Gemfields introduces the G-Factor, a new measure for transparency in tax disclosure
On 13 July, Gemfields proposed ‘The G-Factor for Natural Resources,’ a new measure promoting greater transparency regarding the level of natural resource wealth shared with the governments of host countries.
The G-Factor for Natural Resources is intended to be an uncomplicated indicator of the percentage of a natural resource company’s revenue that is paid to the host country government in taxes, plus – where the host government is a shareholder – dividends.
Taking its name from the “g’s” in “government”, “governance” and “good practice”, with a passing nod to “Gemfields”, the G-Factor for Natural Resources would typically be calculated and published by companies engaged in the extraction and sale of natural resources, such as the mining, oil, gas, timber or fishing sectors.
Through this announcement and by publishing its own five-year revenue contributions of 30% to Mozambique and 24% to Zambia, Gemfields is inviting collaboration, input and support from governance bodies, mining organisations, industry observers and host governments in adopting the G-Factor for Natural Resources and thereby further increasing transparency in the sector.