Governance
Risk & opportunity oversight
Introduction
Mercuria operates in complex and evolving global markets where risk and opportunity are inherently interconnected. Effective oversight is essential not only to protect our business, but also to support long-term value creation and navigate the transition towards more sustainable energy systems.
As a global energy and commodities group, we manage risk within the context of the energy trilemma—balancing energy security, affordability and sustainability—recognising that shifts in geopolitics, regulation and market dynamics can rapidly change the risk landscape.
We define risk as the potential for adverse impacts on our business, including financial, operational and reputational exposures, and opportunity as the potential to create value through improved performance, innovation and strategic positioning.
Recognising the interdependence of risks and opportunities, we take an integrated approach to their identification, assessment and management. Further detail on climate-related risks and opportunities is provided in our TCFD Reporting section.
Effective risk and opportunity management is fundamental to Mercuria’s performance and resilience. Unmanaged risks can lead to financial loss, operational disruption and reputational damage, while missed opportunities may limit growth and competitiveness. By actively managing both, we aim to strengthen our business and deliver long-term value for our stakeholders.
Our key risk areas include:
- Climate change risk: including both physical risks, such as changing weather patterns and sea levels, and transition risks linked to evolving regulation, market dynamics and consumer behaviour
- Compliance risk: including risks arising from non-compliance with laws, regulations and internal policies, requiring strong governance and control frameworks
- Supply chain risk: including human rights, sanctions and geopolitical risks inherent in global trading activities
- Credit risk: relating to the potential for counterparties to default on contractual obligations
- Environmental, Social and Governance (ESG) risk – relating to the impact of our activities across environmental, social and governance dimensions
- Market risk: including exposure to fluctuations in commodity prices, interest rates and foreign exchange
- Operational risk: relating to the effectiveness and resilience of internal processes, systems and controls
- Reputational risk: linked to stakeholder perception and the need to maintain trust through ethical conduct and transparency
Mercuria’s risk management function operates with independent oversight, working closely with management, trading desks, investment teams and technology functions across all locations. Embedding risk management within each business unit strengthens processes and supports effective collaboration across the organisation.
Specialised risk teams are responsible for identifying, assessing and managing risks and opportunities, as well as developing and implementing relevant strategies, policies and procedures. These teams also monitor risk exposures and ensure appropriate reporting to senior management.
Our approach to risk and opportunity management is proactive and integrated, forming a core part of how we operate. As our business evolves—expanding across energy, LNG, metals and critical minerals—we continuously adapt our risk frameworks to reflect changing market conditions and emerging challenges.
Through this approach, Mercuria aims to build resilience, capture opportunities and support more secure, affordable and sustainable energy and commodities systems over the long term.