Local content is increasingly recognized, across numerous industries, as a vehicle for stimulating socioeconomic development. When managed properly, local content can support broader structural economic objectives such as driving diversification, increasing competitiveness, improving Labor productivity, and catalyzing foreign direct investment. Likewise, various stakeholder groups are becoming more interested in the broader economic impact and spillover effects that local content creates. Local content measurement and reporting is an evolving space as the industry is continuously learning and improving its ability to optimize its socioeconomic impacts. Looking ahead, it is likely that demand for more rigorous and transparent local content reporting will become more integrated into global sustainability and environmental, social and governance (ESG) reporting frameworks. The data collected will be increasingly important to policymakers charged with finding more effective ways to stimulate local economic development. Companies will continue to rely on this data to improve their own value proposition to society and inform how they compete. As the demand for robust measurement and reporting intensifies, the ability to meet this demand must keep pace. Thus, it is important to establish pragmatic local content measurement and reporting frameworks that are conducive to driving sustainable impact, gathering the appropriate data in a timely and cost-effective manner, and communicating results and progress against performance with a learning and development mindset.

Local content measurement and reporting: Good practice guidance for the oil, gas and alternative energy industry

Resource Key: 5TM8TF5J

Document Type: Report

Creator:

Author:

  • IPIECA

Creators Name: {mb_resource_zotero_creatorsname}

Place: London

Institution: IPIECA

Date: 2023

Language: en

Local content is increasingly recognized, across numerous industries, as a vehicle for stimulating socioeconomic development. When managed properly, local content can support broader structural economic objectives such as driving diversification, increasing competitiveness, improving Labor productivity, and catalyzing foreign direct investment. Likewise, various stakeholder groups are becoming more interested in the broader economic impact and spillover effects that local content creates. Local content measurement and reporting is an evolving space as the industry is continuously learning and improving its ability to optimize its socioeconomic impacts. Looking ahead, it is likely that demand for more rigorous and transparent local content reporting will become more integrated into global sustainability and environmental, social and governance (ESG) reporting frameworks. The data collected will be increasingly important to policymakers charged with finding more effective ways to stimulate local economic development. Companies will continue to rely on this data to improve their own value proposition to society and inform how they compete. As the demand for robust measurement and reporting intensifies, the ability to meet this demand must keep pace. Thus, it is important to establish pragmatic local content measurement and reporting frameworks that are conducive to driving sustainable impact, gathering the appropriate data in a timely and cost-effective manner, and communicating results and progress against performance with a learning and development mindset.

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