Trafigura Group, a market leader in the global commodities industry, has today published its 2020 Responsibility Report, reflecting a year of strong progress in improving transparency, engaging openly with a broad range of stakeholders and continuing to take a leadership position in progressing responsibility standards in commodities trading. The report marks the company’s sixth consecutive year of reporting on its environmental, social and governance approach and performance.
- Group target to reduce operational greenhouse gas (GHG) emissions by at least 30 percent in absolute terms by the end of financial year 2023, compared to 2020, targeting a sustainable reduction of over one million tonnes of CO2e from Group operations (Scope 1 & 2). Steps taken, including external verification of GHG data and internal tracking of emissions intensity, to enable setting a meaningful Scope 3 emissions reduction target within the next three years.
- Significant investments in green hydrogen and creation of Nala Renewables joint venture, through recently established Power and Renewables division. Target to invest in two gigawatts of renewable power generation by end of 2025, including planned EUR30 million investment in a major new lithium-ion battery energy storage system to be located at Nyrstar zinc smelting facility in Balen, Belgium.
- Scope of Trafigura’s Responsible Sourcing programme, encompassing human rights and environmental due diligence of suppliers, extended in 2020 to cover all metals and minerals traded from point-of-origin to point-of-sale. Alignment with ISO 20400:2017 standard independently verified in 2020, with full alignment of the programme with the ISO standard targeted by the end of FY2023.
- Efforts to drive improvements in safety performance led to a further 13 percent annual reduction in serious injuries or a 43 percent reduction year-on-year on a like-for-like basis excluding acquired assets. The Group is targeting a further 20 percent reduction in lost time injuries in 2021.
- Improvements to the Group’s safety and reporting culture resulted in more than double the number of “lessons to be learnt” being shared across the Group compared to 2019, together with a 72 percent increase in near-miss reporting – a crucial leading indicator of safety performance.
- Trafigura becomes the first company to formally adopt and report against new guidance established by the Extractive Industries Transparency Initiative (EITI) for commodity traders. Trafigura’s new standalone Payments to Governments report includes information disaggregated by cargo purchased from, and pre-payments to, EITI implementing countries and their state-owned entities – both for oil and petroleum products, as well as metals and minerals.
- Trafigura’s flagship circa USD5.5 billion syndicated revolving credit facility to be refinanced in Q1 2021 as a sustainability-linked loan, setting ambitious key environmental, responsible sourcing and social targets at a corporate level.
“Our 2020 Responsibility Report is an opportunity to reiterate our aim of taking a leading role in corporate responsibility in our sector. I am proud of the progress we have made towards this goal and look forward to reporting on the further advances we expect to make over the coming year,” said Jeremy Weir, Trafigura’s Executive Chairman and Chief Executive Officer.
To download a copy of the 2020 Responsibility Report click here.