Progress in 2022

WELCOME

Welcome to the Mercuria 2022 Corporate Social Responsibility (CSR) report. Each year we publish our CSR report as a means to communicate with all of our stakeholders about the strategy of our company as it relates to sustainability, social responsibility and governance.  We take this opportunity to report on our performance and to explain the progress of our company during the previous year.  

Marco Dunand

CHIEF EXECUTIVE OFFICER

We pride ourselves on our strong corporate governance and culture, we take seriously our role in the global commodity supply chain and operate in a manner that is consistent with our Code of Conduct and our strong Compliance policies.  We recognize the importance of conducting our business in an ethical and responsible way and it is my personal mandate to all Mercuria employees that all of our activities must meet the high standards of behaviour expected by the management team and our stakeholders.

2022 was a volatile year in the commodity markets due to a number of significant factors which caused high and volatile prices.  The markets were stress tested in a way that they hadn’t been before which presented challenges for all.  In these types of market conditions Mercuria brings value to the markets in the form of helping to balance supply and demand and reducing volatility.  Mercuria’s expertise across all aspects of trading and its strong balance sheet mean we are able to help provide stability to the markets.

Mercuria’s main focus is on the supply of Energy around the world. Energy is a critical resource which comes in many forms and is needed by individuals, companies and infrastructure alike.  The war in Ukraine has prompted many changes to the Energy markets and particularly has changed the flows of how and where Energy is traded around the world.  The Energy markets have been disrupted as a result of this and many other factors and the industry and policy makers are facing what is commonly referred to as the Energy Trilemma.

The Energy Trilemma refers to the need to balance energy security, affordability and environmental sustainability, all of which are critical priorities. You can read more about this on the Energy Mix page within the Planet section. We believe that all of these components are critical and therefore we are

focused on progressing the transition in a way that is realistic and considers all of these factors, we believe that we are in a position to drive the transition as we can act with speed and scale. We have a strong balance sheet and credit lines. As we are a private company, we can decide things very quickly within our strong risk management framework, and come up with the capital needed to act.

Our day to day physical trading activities have always contributed to energy security and affordability and it is at the core of Mercuria’s strategy to actively contribute to environmental sustainability.

We are all residents of our planet and we want to ensure that it is protected and preserved.  The world is currently experiencing a climate crisis, resolution of which is now critical for the protection of our environment for our future generations. As a trader of commodity products we have an active role to play in the world’s transition to cleaner fuels. There are a number of ways in which this strategy has been integrated into our business.  It is our responsibility to help organizations to procure and transition to cleaner products. Our expertise, global reach, mature risk management, and expert pricing skills mean that we are perfectly matched to be able to do our part to progress toward a net zero economy.

We have been ahead of the curve on our transition strategy for a number of years. You can read more about our product mix in Planet in 2022 and about some of our investments in the Partner Profiles.  As a responsible company we aim to drive the transition in a responsible way.

Under investment in new technologies and infrastructure has been a reality for a number of years and this is another area where we feel we have a role to play.  We have made a public commitment to have 50% of our investments in

transition and renewable energies by 2025 and we believe that we will reach this target before our committed date.  During that last few years we have been increasing our investment in various new and transition technologies which has allowed us to build up expertise in areas which we believe will be key to the future energy mix.

As part of our commitment to the energy transition we have offset our scope one and scope two emissions from 2022.

We also believe that nature is going to have to play its role in the transition, because when the world talks about net zero, it doesn’t mean absolute zero. Something has to capture carbon from the air. There are many different methodologies for this, including direct air capture. But we believe that investing into protecting forests, in tree planting, and into preservation of wetlands and biodiversity will have a big part to play. We have invested personally and with the company half a billion dollars into these nature based solutions and biodiversity enhancement. We have people on location in over 30 countries, have developed satellite monitoring of land use, and we have specialists reforesting the places that need to be reforested.

We look forward to continuing to work with our partners and employees on achieving our goals and continuing to grow Mercuria as a responsible and successful company.

 

Marco

Marco Dunand

CHIEF EXECUTIVE OFFICER

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2022 in numbers →

Progress in 2022

Governance in 2022

Planet in 2022

People in 2022

Prosperity in 2022