Governance overview

At Mercuria, we believe that good governance and strong company culture are essential for the long-term success of our business and the well-being of our stakeholders.

In this section, we provide an overview of our governance structure and practices, highlighting our business principles, due diligence and how we ensure ethical and compliant behaviour.

We believe that by adopting best practices in governance and having a strong company culture, we can create value for our stakeholders and contribute to a more sustainable future.

ESG reporting commitment

Embracing transparency for shared value.

Mercuria is proud to be among a leading coalition of businesses across industries committed to the Stakeholder Capitalism Metrics. Introduced by the World Economic Forum (WEF) and its International Business Council (IBC) in 2020, these metrics provide a standardized framework for companies to measure and disclose their long-term value creation for all stakeholders.

The Stakeholder Capitalism Metrics, drawn from established voluntary standards, offer a set of 21 core, universally comparable disclosures focused on four key areas: People, Planet, Prosperity and Principles of Governance. These metrics address issues deemed most critical for business, society and the planet, serving as an industry-agnostic, region-independent tool for companies to report on their sustainability efforts. By facilitating benchmarking and progress tracking, they enhance transparency and accountability, ultimately promoting effective decision-making and shared, sustainable value creation.

Mercuria’s commitment to this initiative manifests in the following ways: 

  • Integration into Reporting: We actively incorporate the core metrics into our reporting for investors and other stakeholders, utilizing platforms such as our reports, financial statements, and other relevant materials. This reporting focuses on the metrics most relevant to our specific business model, or transparently explains alternative approaches when relevant. 
  • Advocacy and Collaboration: We publicly champion this work and encourage our business partners to embrace it. We recognize the importance of industry-wide collaboration in driving this initiative forward and promoting shared advancements. 
  • Standardization and Convergence: We actively contribute to efforts aimed at converging existing ESG standards, frameworks and principles. This focus on aligning non-financial reporting practices on common ESG metrics ultimately leads to a more globally accepted and effective solution for sustainable development. 

“At Mercuria we are keen on industry collaboration and cooperation to bring more standardization to the transparency and operation of the commodity supply chain. We see progress in these areas as key to promoting and facilitating the energy transition through encouraging efficiencies and development. We welcome this initiative as an important step forward.”

Marco Dunand / CEO, Mercuria

Our CSR reporting demonstrates a proactive approach to ESG reporting. Prior CSR reports already reflect the recording and disclosure of several metrics aligned with the WEF white paper. We are continuously refining our program to ensure comprehensive and relevant data collection and disclosure regarding our business’s impact on all stakeholders.

Swiss code of obligations

We also comply with the Swiss Code of Obligations (CO), related to the transparency on non-financial matters. Below, we provide a table with indications of where to locate the relevant sections of the reporting on this CSR website. 

Swiss CO: Transparency on non-financial matters

Swiss CO: Transparency in raw material companies

Swiss CO: Due Diligence and Transparency in relation to Minerals and Metals from Conflict-Affected Areas and Child Labour

Business principles

Mercuria’s Business Principles provide the seven guiding principles for how we conduct business. 

We conduct ourselves with integrity, operate ethically, and act responsibly.

Mercuria holds itself to the highest legal, ethical and moral standards. We have recently signed the Commitment to Adopt and Implement the Stakeholder Capitalism Metrics of the International Business Council of the World Economic Forum to encourage progress towards a systemic solution for environmental, social and governance considerations relevant to long-term value.

We have a robust Know-Your-Customer (KYC) procedure that all counterparties are required to be cleared through before any transaction can be executed to ensure that all of our counterparties meet standard legal and ethical requirements. The KYC process also helps raise awareness regarding treatment of governmental agencies and politically exposed persons to ensure our employees interact with those counterparties in appropriate permissible ways and never risk having the appearance of trying to unduly influence their behaviour or decisions.  

We comply with all applicable laws, rules and regulations. 

Mercuria fosters transparent, favourable relationships with its regulators across the globe. All our employees are held accountable for knowing, understanding and adhering to the rules and regulations applicable to their roles, whether in trading activities or support functions. 

We maintain accurate financial and non-financial records and reporting. 

Mercuria never falsifies or submits any misleading information to any regulatory agency or financial institution, in line with Mercuria’s Record Retention Policy. This commitment extends to the accurate recording of non-financial matters. There is zero tolerance for violation of this principle, emphasizing the importance of transparency and accountability across all areas of our operations. 

We act responsibly towards human rights, society and the environment. 

Mercuria has strict due diligence procedures and policies regarding the protection of human rights, society and the environment. These do not only cover our operations, but also those of our counterparties. We protect and promote human rights across our supply chains. We prioritize hiring local people to manage and operate our facilities in the communities where we are present. This practice not only supports local employment and economic development but also ensures our operations are carried out with a genuine understanding and sensitivity towards local communities.  

We commit to driving sustainable change and innovation in our industry.

Mercuria is committed to driving sustainable change and innovation in the industry by allocating more than 50% of its investments in innovative green energy solutions. This target was set to be met in 2025 but has already been achieved in 2022. We continue investing towards the energy transition. In addition, our employees are required to integrate environmental practices in their procurement decisions, alongside considerations of price, performance, quality and availability. We have policies in place across our offices including the selection of office supplies, efforts to save power, responsible paper use and recycling.

We value, respect and protect our employees. 

One of the most valuable characteristics of Mercuria’s workforce is diversity, spanning different geographies, cultures, ages, education and work experiences. We encourage the diverse thought process of our employees, and work in an open space to encourage open dialogue and collaboration among different teams. This results in the best, efficient business solutions. The safety of our employees is our highest priority. Our dedicated health and safety team assesses working conditions and provides security measures for all our operations, including those of our assets. Our team provides a reporting system for health and safety concerns and strict policies and principles to ensure best practices. 

We protect the information and interests of Mercuria in the course of our activities. 

These Business Principles coupled with the Code of Conduct ensure that Mercuria goes beyond just complying with applicable laws, rules and regulations. Our employees are responsible for protecting all our information and interests, including our data and physical assets. We challenge ourselves to be an excellent corporate citizen by acting with integrity in our business transactions, and in the communities and the environment in which we operate in.

Governance committees

Strengthening governance via committees.

Mercuria empowers two dedicated committees to support the Board of Directors in fulfilling oversight responsibilities:

Compliance & Business Ethics Committee (CBEC):

  • Global Expertise: Comprised of a cross-functional team of senior employees from around the globe, the CBEC convenes quarterly to thoroughly review Mercuria’s business activities through the lens of compliance and ethics. 
  • Proactive Assurance: The committee continuously evaluates the company’s compliance and ethics programs, policies and procedures, ensuring their effectiveness and alignment with evolving regulations and best practices. 
  • Executive Guidance: Through their rigorous reviews, the CBEC informs and empowers senior management’s oversight of Mercuria’s operations, guaranteeing compliance with international laws and regulations, and adherence to the highest ethical standards.

Health, Safety, Security & Environmental, Committee (HSSE):

  • Promoting Wellbeing: Dedicated to environmental, health, safety and security across Mercuria’s operations, the HSSE Committee oversees relevant programs, policies and procedures, ensuring the safeguarding of employees, communities, and the environment. 
  • Strategic Guidance: The committee actively advises management on implementing robust HSSE measures within the company’s diverse holdings and assets, promoting consistent practices throughout the group. 

The establishment and active engagement of these committees highlights Mercuria’s unwavering commitment to responsible and ethical business practices. They serve as powerful instruments in ensuring that the company’s activities consistently prioritise the well-being of people, places and the environment.

HSSE committee

Safeguarding people, environment and the future.

Mercuria prioritizes the well-being of its people, the environment, and its future through its dedicated HSSE Committee. Composed of senior executives representing all our federations and chaired by the Group President, this committee actively oversees vital aspects of our HSSE programs. Regular meetings ensure proactive management of HSSE-related issues and progress towards our ambitious goals.

Three fundamental guiding principles anchor the HSSE strategy and committee work:

  • People welfare: The welfare of our employees, contractors and the general public is our highest priority. We operate with zero tolerance for any situation that jeopardizes well-being within our business activities.
  • Environmental responsibility: Recognizing our social contract with communities, we commit to conducting business in an environmentally responsible manner, exceeding even the varying national standards we encounter globally.
  • Robust security: We are dedicated to strengthening our defences against both physical and technological threats. Protecting our business, employees, external stakeholders and the wider community from such threats is a constant priority.

The broad scope of responsibility of the HSSE Committee means its influence extends across a diverse range of areas, including: 

  • Process and Related Safety Management: Implementing and auditing robust safeguards for personnel and operational integrity. 
  • Security: Strengthening physical and cyber security measures to mitigate potential threats. 
  • Crisis and Emergency Management: Preparing for and effectively responding to unforeseen contingencies. 
  • Compliance with Operational Permits: Ensuring adherence to all relevant environmental and safety regulations. 
  • Environmental Protection: Minimizing our environmental footprint and actively pursuing sustainable practices. 
  • Sustainability Topics: Leading the way in integrating sustainability considerations into our operations and future strategies.

Beyond these specific areas, the committee maintains the authority to identify and address any emerging HSSE issues that may arise. 

The HSSE Committee plays a critical role in fulfilling Mercuria’s commitment to safety, security, and environmental responsibility. Its dedication ensures that we operate as a responsible and ethical company, prioritizing the well-being of our people, customers, and the environment while paving the way for a sustainable future.

Financial responsibility

Mercuria is dedicated to fulfilling its legal and social obligations when it comes to tax. We consistently strive for best practices in accuracy and timeliness, across the thousands of tax returns filed by our finance team each year.

Beyond simply complying with regulations, Mercuria ensures its operations in low-tax jurisdictions are firmly grounded in legitimate commercial substance and economic activity. When navigating complex tax matters or encountering significant uncertainties, we leverage the expertise of external advisors to ensure responsible and transparent actions. 

We value open and trust-based relationships with tax authorities across all our operating jurisdictions. This commitment manifests through various actions: 

  • Diligent Compliance: We diligently adhere to all relevant tax legislation, regulations and obligations in each jurisdiction. 
  • Prompt and Accurate Filings: We meet all tax filing, return and payment deadlines accurately and on time. 
  • Responsible Tax Contribution: We consistently pay the correct amount of tax in a timely manner. 
  • Collaborative Approach: We proactively work with tax authorities to address material uncertainties and seek early agreement wherever possible. 
  • Zero Tolerance for Evasion: We firmly oppose and do not tolerate any form of tax evasion, including by individuals employed or contracted by or on behalf of Mercuria. 

Code of conduct

Mercuria’s Code of Conduct is an integral part of the company’s business and all activities conducted by the Mercuria group of companies. Employees are expected to work in accordance with Mercuria’s high moral, ethical, and legal standards, and it is their duty to look for opportunities to exemplify these traits in their internal and external activities.

Since the onset of the COVID-19 pandemic, some of Mercuria’s workforce has often been required to work remotely. The importance of a shared Code of Conduct during these uncertain times was more paramount than ever. The Global Compliance team ensured that the entire compliance training program was available and completed online, either by video session or as a digital training, by all employees. This approach extended to Mercuria’s Internal Market Abuse training, which ensures that all trading activity is conducted appropriately and in full compliance with market and regulatory rules and regulations. Special care is also given to ensure that new-hires across the business are introduced to the Compliance team in the relevant jurisdiction as soon as they join the company.

New employees are guided through the Code of Conduct with particular attention given to certain aspects, such as the Whistle-blower policy. Mercuria requires certain of its business partners to review and attest to compliance with its Code of Conduct. The company has implemented procedures to ensure that its business partners are aware of Mercuria’s guiding principles and the expectations it has for the way they conduct business. Mercuria’s Code of Conduct is published digitally on our website, our internal intranet site, and is available in hard copy in our offices around the world.

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