Trafigura Group Pte Ltd, a market leader in the global commodities industry, has today published its fifth Responsibility Report which accounts for the company’s 2019 environmental, social and governance (ESG) performance. The Report presents a practical perspective on how Trafigura is working independently and in collaboration with its many suppliers and counterparts to manage its ESG impacts.
Trafigura’s safety performance has continued to improve over the course of 2019. The Group’s Lost Time Incident rate fell by 27 percent to 1.76 (2018: 2.40), following reductions of 38 percent and 12 percent in 2018 and 2017 respectively.
Trafigura’s reporting of greenhouse gas emissions extended in 2019 to include all activities and the company reported good progress towards reporting emissions intensity.
In 2019, Trafigura eliminated the practice of using intermediaries or agents for business origination and development purposes. The Group’s Know-Your-Counterparty (KYC) due diligence programme extended to 8,672 counterparts, up from 6,475 in 2018.
Health, safety and environmental (HSE) diligence by the Group extended to 683 contractors, up from 403 in the previous year and, similarly, Trafigura’s responsible sourcing programme expanded significantly, ‘reflecting a growing industry trend towards enhanced supply chain diligence’. Trafigura has made specific disclosures relevant to its Tailings Storage Facilities, in accordance with the Investor Mining and Tailings Safety Initiative.
Trafigura’s reporting aligned with the Extractive Industries Transparency Initiative (EITI) related to payments of USD3.2 billion in 2018 to national oil companies (NOCs) in EITI countries (2017: USD2.7 bn), against total payments of USD35.8 billion in 2018 to NOCs in non-EITI countries (2017: USD30 bn). As noted in the report: ‘Trafigura is committed to advancing the mission of the EITI and extending its reach internationally’. In 2019, Trafigura became the first commodity trading company to join the board of the EITI.
“Acting responsibly requires an undivided commitment, notably to safe operations and a relentless focus on robust behaviours and compliance practices. Maintenance of that trust will increasingly rely on our ability to leverage our entrepreneurial flare, market intelligence and logistics network in pursuit of a low carbon economy,” said Jeremy Weir, Executive Chairman and CEO of Trafigura.
To download a copy of the 2019 Responsibility Report and to view the accompanying case studies and videos please click here.