Mercuria CSR report 2023 - Flipbook - Page 29
PLANET 2023
RISK MANAGEMENT
Mercuria’s strategic approach is closely aligned
with its risk management framework,
particularly in the context of our energy
transition strategy. Our risk management
initiatives are aimed at fortifying our defenses
against different threats, encompassing both
transition and physical risks.
We have shifted away from oil toward lower
carbon energy sources. This diverse product
mix provides a hedge against the impact of
policy and regulatory changes on specific
products in particular locations. Additionally, it
opens access to new markets and potential
revenue streams.
We also capitalize on diverse investment
opportunities, ranging from different types of
assets, industries, and geographic locations. As
covered by the Investments section, our
portfolio includes investments in sectors critical
to powering the energy transition designed to
mitigate the array of risks previously outlined.
Furthermore, to enhance our understanding of
TARGET
new
markets
and
incorporate
varied
perspectives into our investment decisions, we
have strategically expanded our investment
team to include professionals from a broad
spectrum of relevant backgrounds. We have
strengthened expertise within our analytics,
trading and operational teams, enhancing our
operations and driving greater profitability.
In relation to the management of physical risks,
we undertake continuous due diligence of our
asset holdings as highlighted in our Health,
Safety, Security and Environmental (HSSE)
section.
Please refer to Risk & Opportunity Oversight for
more on our risk management.
METRICS & TARGETS
At Mercuria, we set climate-related targets and
measure the progress towards those targets
using defined metrics. In the following table, we
show the targets and metrics related to our
emissions, investments and percentage traded
products.
ASSOCIATED RISK / OPPORTUNITY
ADOPTION MEASURES
Emissions
GHG emissions*: Scopes 1, 2 and 3
(Categories 6, 8 and 9 for Scope 3)
Net-zero carbon emissions by 2050
Transition risks
Investment
Spendings on the energy
transition
Over 50% of investment spendings towards
Physical risks, Energy source opportunity
the energy transition by 2025
Percentage traded products
Traded volumes by product type
Decrease in oil traded products
Energy source opportunity
Intensity of energy commodities
traded
Decrease in carbon intensity of traded
Energy source opportunity
products
*All information regarding CO2e emissions, basis of reporting, and standards used are found in Planet 2023 Section
28
