Page 15 - 2021 BHP Foundation Strategy And Impact Booklet

A Snapshot from Our Portfolio 15

Opening Extractives Open Contracting in From Disclosure to
Resource-rich Countries Development (D2D)
Disclosure of the ultimate beneficial owners Open Contracting Partnership (OCP) works Governments and natural resources
of companies is critical to eliminating with governments globally to ensure the companies are recognizing the importance
opportunities for corruption in the money flowing from natural resource of public data disclosure on social,
resources sector. Requiring beneficial endowments is more effectively converted economic and environmental impacts
ownership disclosure creates a level into public benefit and better outcomes and contributions towards quality-of-life
playing field across the industry enabling for citizens, ultimately creating sustainable improvements. Such efforts increase
host governments to attract responsible and equitable societies. OCP does this by accountability and build trust. To meet
long term investment which harnesses supporting governments to open up and the public’s needs, data must be easily
their natural resource wealth for the transform public procurement systems, accessible and presented in user-friendly
benefit of citizens. The importance of processes and data using a multistakeholder formats. The D2D program, a partnership
proactively driving this agenda is magnified approach, open data and digitization across with the International Finance Corporation
by the energy transition through which the whole cycle of public contracts. This (IFC), helps citizens become better informed
governments with an abundance of climate reduces corruption, increases competition about decisions that affect them by
friendly mineral wealth have the potential and enhances diversity by creating market providing frameworks to enable the sharing
to transform their economies and societies. opportunities for all businesses including of data, such as tax flows, royalty payments,
women- and minority-owned businesses and water use statistics.
This year, the Foundation launched a resulting in better outcomes for citizens.
five-year cross-sector partnership with Over the past four years, IFC has built
EITI and Open Ownership to end the use In the four years we have partnered with OCP disclosure platforms across industry,
of anonymous companies by supporting it has achieved significant impacts. In Chile, governments, and civil society that have
governments in EITI implementing open contracting reforms have contributed facilitated citizen access to information
countries to develop public beneficial to the reduced cost of medicines and saved and open data on the natural resources
ownership registers. Bringing data about the government an estimated US$9 million. and infrastructure sectors. Its data-driven
company ownership to light by supporting In Colombia, a corrupt US$22 million approaches are enabling new models of
governments to develop public registers price-fixing scheme for the provision of collaboration and decision making. In
disclosing the identity of company owners school meals was exposed, resulting in Peru, new participatory budgeting laws
will encourage responsible investment, better-quality food for 800,000 students each were informed by citizen monitoring
build fairer markets where companies day. OCP’s Lift impact accelerator program, of municipalities’ use of royalties
compete on the same basis of transparency, directly supported by the Foundation, generated from natural resources
and reduce corruption risk. has seen the scaling of open contracting projects. In Mongolia, IFC is working
approaches. For example, departments within with the Ministry of Mining and Heavy
the Mexico City government have replicated Industry, mining companies, and civil
the bikeshare team’s open contracting society organizations to increase citizen
strategies around vendor engagement, understanding of open data and build
including new processes to renew the city’s innovative, open data-driven applications
bus fleet and security cameras. for mining communities.

Coyllurqui, Apurimac, Peru
Photo credit: Luliano Hinostroza