Planet

greenhouse gas emissions

The shift from fossil fuels to cleaner, more sustainable and renewable sources of energy is driven by a need to halt climate change, reduce pollution, and improve energy security.

Mercuria plays an active role by promoting sustainability and investing in technologies and infrastructure that advance the transition to this low-carbon economy.

We don’t have the solution, but we must go into action and as a private company, we can act with speed and scale.

We are well ahead of our commitment that half of our investments will be in all parts of the energy transition by 2025 having invested in over 50 different companies. These investments are projected to generate significant CO2 reductions and removals.

We are also helping to improve energy security and sustainability in supply chains by sourcing sustainable biofuels, reducing emissions from shipping, and investing in nature based solutions such as forest preservation and reforestation projects. In addition, Mercuria’s environmental products team works with our clients and partners to create bespoke solutions that help companies to meet their short and medium term net zero targets.

As part of our goal to be net zero by 2050, we are working hard to manage and reduce the carbon footprint of our business. We recognise this is a journey and it is not linear, as parts of the business are harder to decarbonise than others. For this reason we chose to offset the remaining Scope 1 & 2 emissions for 2022.

The purpose of this section is to outline the approach and scope used as the basis of preparation for the calculation and reporting of our greenhouse gas (GHG) footprint. Details of our CO2 footprint for 2022 can be found on the planet in 2022 page.

We have been measuring our GHG footprint over a number of years and have continued to make improvements during 2022; we have sought to improve data quality, data collection processes, and calculations where better data or approaches are now available. Additionally, carbon accounting standards and new guidance continue to evolve and we have sought to update our approach accordingly. For 2022, the GHG emissions have been calculated applying the following basis of preparation.

Guidance and emission factors

The guiding standard used is the GHG Protocol, Revised Edition. Given the diversity of our activity and investments we have considered the relevant principles from various guidance (e.g. IPIECA for oil and gas) for the respective activity. We note there is not always consensus between approaches and so we have sought to apply the relevant approach but will continue to review and update our approach.

Where available, we applied primary data in quantifying emissions, or reported emissions from regulatory reports or derived figures were applied in the absence of reliable primary data.

We have used a variety of emissions factors sources primarily from the IPCC, DEFRA, EPA, IMO.

Organizational footprint

GHG Protocol equity share approach has been applied i.e. asset emissions are included where Mercuria has an equity share. This is a change for 2022, in previous years we had used operational control. The results are not significantly different for this year but we considered equity share to be a better reflection of our business model. There is not at present a significant difference at the aggregate level – for comparison only we have included operational control data for this reporting period as well.

Mercuria operates and owns investments in a wide cross section of energy and energy transition related assets, including terminals and warehousing for storage, bunkering vessels, renewable fuel refineries, gas and power assets (wind and solar), and mining activities.

For the purposes of preparing this report, we have included assets and activities where we have considered there to be a more significant emissions footprint (e.g. oil and gas production, biofuel refining, shipping activities) and where we have shareholding typically above 20% are included. Below this level obtaining data and the relevant equity stake is small the contribution to the overall emissions footprint is not significant.

We have also not included assets that are in development stage (where we assessed their operational footprint to be negligible. We will continue to assess and as relevant include as their activities progress.

Scopes

The following is included in the GHG protocol scopes:

Scope 1 – direct emissions

  • Mercuria assets, activities and investment companies: direct emissions from operational activities, which includes static or mobile combustion, venting and other related emissions
  •  Includes shipping, which is owned and operated for marine fuel bunkering

Scope 2 – indirect energy imports

  • Mercuria assets: power or other energy imports
  • Mercuria offices and data centres: power and gas purchased

Scope 3 – selected categories

  • Category 6: Upstream – business travel
    • Reported for Mercuria’s business flights
  • Category 8: Upstream – Leased assets
    • Reporting of significant emission sources from time chartering of vessels
  • Category 9: Downstream – Transportation and distribution
    • Reporting of the significant emission sources from transportation of traded commodities via gas pipeline or marine vessel
Further detail on approach
  • The gases included in calculations are those in the Kyoto basket of gases (the largest contributors are carbon dioxide and methane). 
  • Emissions have been calculated based on production data or activity data (e.g. combustion of fuels) and supporting documentation provided by the assets and investments companies wherever possible. In this centralised model, calculations apply common emission factors and GWPs from the IPCC’s fifth assessment report. 
  • Scope 2 emissions include office energy use and those from our data centres. We have included offices where we have 15 staff or more and we have included our data centres. 
  • Scope 3 – included the categories that we consider as most relevant to our business model: 
    • Category 6: Upstream – business travel.
      • The primary source of emissions is from our air travel for business. The emissions are based on details of flights provided and recorded through our travel agency. A 3rd party (Atmosfair, a non-profit carbon footprinting & offsetting organisation[1]) uses this data to provide a detailed calculation using DEFRA emission factors. 
    • Category 8: Upstream – Leased assets.
      • A new part of our business in 2022 is the chartering of vessels on time charter, which are then chartered to others for their use. Emissions are calculated based on the total actual consumption of fuel across the period of the time charter during the year.
    • Category 9: Downstream – Transportation and distribution.
      • We have included the two main sources of emissions: transportation of all commodities by marine vessels and gas by pipeline.
        • Shipping emissions: We include charters for commodities transported using actual fuel consumption as reported by the ship-owner; for some voyages where fuel data is not available we have estimated emissions based on the distance and equivalent vessel fuel consumption using a third party estimation tool from ZeroNorth.
        • Pipeline: For gas transportation by pipeline losses (from either leakages or direct usage) are estimated by applying IPCC emission factors based on the volumes transported during the year.
      • Other Scope 3 categories have been considered in the preparation of this report. However, we play a unique role in the value chain, which is primarily that of an intermediary between many parties involved in the exchange of a wide variety of different commodities and temporary storage. Given this unique position across many value chains across different industries and that we are not a consumer nor a significant producer we have not included further categories within our boundary at present. There are also significant hurdles to gathering suitable data. We will continue to monitor approaches and guidance for future reporting periods.

[1] https://www.atmosfair.de/en/

GHG emissions 2022

The latest report of greenhouse gas emissions for the calendar year 2022 can be found in the Planet in 2022 section.

Continue reading

← Energy mix

Waste reduction →

Reporting areas

Governance

Planet

People

Prosperity