Gemfields has announced its updated ‘G-Factor for Natural Resources’ figures as of 31 December 2023.
The G-Factor is a metric initially introduced in July 2021, designed to enhance transparency in how natural resource wealth is distributed between companies and the governments of the countries where they operate and spans a variety of sectors, including mining, oil, gas, timber, and fishing.
Details of the 2023 Update
The recent update by Gemfields underscores the company’s ongoing effort to promote the G-Factor as a standard for transparency and accountability in natural resource management. The company continues to encourage governance bodies, industry peers, and host governments to adopt this measure, which quantifies the percentage of revenue from natural resources paid to host governments in taxes and, where relevant, dividends.
The release of these figures is relevant for the jewelry industry and the wider natural resources sectors. It highlights a push towards establishing a norm for corporate governance and ethical practices in resource extraction. The name ‘G-Factor for Natural Resources’ is derived from the initial letter “g” found in the words “government,” “governance,” and “good practice.”
“Given the desire by governments to increase their participation in their country’s natural resources, a practical measure allowing a direct comparison of the sharing of natural resource wealth assists greatly in identifying responsible custodians of host nations’ resources. The G-Factor for Natural Resources provides a simple ‘school score’ allowing observers to assess the relative efficiency of extractive companies in converting natural resources into wealth for host nations. In order to better align with practices in other countries in our region, we have this year added export duties and levies as an additional parameter in the calculation. 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 Extractive Industries Transparency Initiative (”EITI”).” stated Sean Gilbertson, Gemfields CEO.
Impact on the Industry
For jewellers and other stakeholders in the natural resource sectors, the implications of the G-Factor update are significant. The adoption of such transparency measures may enhance consumer trust, particularly among those seeking ethically sourced and sustainably managed resources. Additionally, this could influence industry standards by encouraging other companies to adopt similar practices.
