Responsible sourcing

We set clear expectations for the environmental, social, and governance (ESG) performance and compliance of our supply chains, with particular attention to higher-risk supply chains involving minerals, metals, and other high-risk commodities, as well as sourcing from Conflict-Affected and High-Risk Areas.

We have designed a risk-based due diligence approach for our underlying supply chains that aligns with the OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas and incorporates applicable legal requirements, relevant industry frameworks, and recognised voluntary standards.

By working closely with our suppliers and customers, we seek to address adverse social and environmental impacts and contribute to more sustainable supply chains. We also share relevant due diligence information and findings with our customers and financing partners where applicable to support informed and responsible decision-making.

We commit to always acting responsibly, promoting social and environmental best practices throughout the entire commodities supply chains – from extraction and handling of raw materials to processing, storage, and transportation. We use our leverage in the supply chain to drive changes that can create meaningful impact.

Mercuria recognizes the important role we play in promoting responsible sourcing, particularly for critical minerals that are essential to the energy transition and often intersect with areas of heightened human rights risk.

We believe that robust supply chain due diligence is fundamental to advancing ethical, responsible, and sustainable practices across the value chain, from extraction to market. We seek to lead by example by:

• Building long-term, mutually beneficial relationships with suppliers and contributing to the resilience of the communities and markets in which we operate
• Sourcing commodities responsibly, in alignment with international standards and best practice
• Holding ourselves accountable to high ethical standards while continuously strengthening our responsible sourcing approach.

Our six principles approach to responsible sourcing: 

1. Preventing serious abuses: We work to prevent human rights abuses and environmental harm across our supply chains.
2. Managing risk effectively: We apply risk-based due diligence to identify, assess, and address potential issues proactively.
3. Combating corruption: We maintain a zero-tolerance approach to bribery, corruption, and fraudulent misrepresentation, and ensure transparency in all transactions.
4. Preventing money laundering: We apply strict anti-money laundering controls to combat financial crime.
5. Promoting responsible security practices: We ensure the responsible use of public and private security providers, with respect for human rights and local communities.
6. Supporting local economies: We prioritize the timely and accurate payment of taxes, fees, and royalties to governments, contributing to local development and economic resilience.

We put these principles into practice in three main ways.

First, all counterparties undergo robust Know-Your-Counterparty (KYC) checks, and we require suppliers to adhere to our six core responsible sourcing principles, which are embedded in our contractual arrangements. Our multi-dimensional KYC process assesses each potential counterparty’s commercial strength, compliance standing, and ethical alignment. This includes evaluating financial and operational reliability, compliance with applicable laws and industry standards, and exposure to legal, sanctions, reputational, or integrity-related risks.

Second, we conduct risk-based assessments of the underlying supply chain using a combination of our in-house supply chain management system, on-site visits where relevant, digital tools and independent third-party providers. This includes mapping the supply chain and assessing risks at each relevant node and linkage, including transportation and other intermediary stages. These assessments cover human rights, environmental, compliance and governance risks, as well as the measures in place to prevent, mitigate, and address these risks where they arise.

As part of this process, we also collaborate with industry, research, educational, due diligence and other expert partners to draw on external knowledge and specialist expertise that strengthen our risk identification and assessment and inform responsible sourcing decisions.

Third, we conduct our business with transparency and integrity, supported by continuous monitoring of our operations and supply chains to identify issues early and ensure timely corrective action through our own teams or independent third-party assessments.

Mercuria is committed to building a more responsible and sustainable future for the commodities industry. We believe that by working together, we can create a world where ethical practices and environmental protection go hand in hand with economic prosperity.