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 primary and direct taxes, plus – where the host government is a shareholder – dividends.
The GFactor for Natural Resources takes its name from the “g’s” in “government”, “governance” and “good practice”.
“Given the evolution of resource nationalism on the one hand, and increasing strategic competition by companies and states for access to resources on the other, it seems to us that a practical measure allowing more direct comparison of the sharing of natural resource wealth would assist greatly in identifying responsible custodians of host nations’ resources,” Gemfields CEO Sean Gilbertson said in a media statement.
“We hope the G-Factor for Natural Resources will be voluntarily adopted by other companies, insisted upon by host governments and incorporated into projects such as EITI,” he said.
Gemfield’s updated G-Factor numbers are here.
This article was published by: Amanda Stutt
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