Mercuria CSR Report 2020 - Flipbook - Page 50
of its business. Coupled with this is our ability to work
process ensures that we fulfill our duty to support
collaboratively with our customers and partners.
the United Nations Guiding Principles (UNGPs) by
Key to these effective partnerships is our insistence on
identifying, preventing and mitigating any human rights
a prudent “Know-Your-Counterparty” (KYC) evaluation
breeches that may have already occurred or are under
prior to execution of any contract or engagement in
investigation.
formal business dealings.
Mercuria believes that KYC checks are key mitigants
In so doing, we seek to take a measured and conservative
against business risks. KYC checks help protect
approach to our risk management. Our KYC and
Mercuria from any involvement in any activities that
screening procedures aim to highlight prospective
involve fraud, money laundering, bribery, human-rights
counterparties that might pose any risk to our business.
violations and other forms of corruption and crime. By
Our KYC evaluation is multi-faceted, designed to
conducting thorough KYC checks, we can mitigate the
understand our counterparty’s commercial strength,
financial, reputational, regulatory and strategic risks to
compliance standing, and extends to incorporate our
Mercuria from other entities.
own sense of ethics into our assessment. Mercuria
continually reviews its KYC methodology to ensure
that it remains up to date with developing international
standards and improvements are made wherever we
see the opportunity to do so.
We are increasingly utilizing technology to review,
monitor, identify and flag high-risk counterparties and
activities. These technologies allow us to identify risks
faster and more accurately. Similarly, Mercuria prudently
follows a program to conduct appropriate Due Diligence
prior to entering any investments, acquisitions or joint
KYC procedures
ventures. With Mercuria’s worldwide business activities,
we recognize the challenges that can arise in sourcing
In all of its business dealings, Mercuria carefully
materials in or near to areas affected by conflict and /
considers not only our counterparties but also the
or other governance issues. In this regard Mercuria has
contractors and service providers we utilize to help us
implemented procedures to conduct various degrees
to conduct our business activities.
of enhanced due diligence in all its business dealings
in or around these jurisdictions. In particular, Mercuria
For all of our contractors, Mercuria looks into their
seeks to regularly monitor its commodity’s supply chain
general HSE policies, particularly with regard to where:
to help ensure that Mercuria in no way contributes to
human rights abuses or violence or exploitation in
• We have specific requirements and a vetting
conflict affected areas.
procedure for all vessels / barge operators with
whom we might contract to move our commodities.
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Furthermore, within this framework, Mercuria applies
• We evaluate storage facilities to confirm their ability
its due diligence to assure that any counterparties we
to manage any products we might store with them,
may work with are not the subject of legal sanctions
prior to engaging with them.
or dealing in sanctioned products. Mercuria’s KYC
• We utilize independent laboratories and surveyors.
