Vitol
Climate Impact & Sustainability Data (2023)
Reporting Period: 2023
Environmental Metrics
Total Carbon Emissions:30.7 mtCO2e/year
Scope 1 Emissions:1.8 mtCO2e/year
Scope 2 Emissions:0.2 mtCO2e/year
Scope 3 Emissions:28.8 mtCO2e/year
Water Consumption:12 million m3/year
Waste Generated:602 kt/year
ESG Focus Areas
- Climate Change
- Energy Transition
- Human Rights
- Health and Safety
- Governance
- Supply Chain
- Community Engagement
Environmental Achievements
- Reduced volume of substances from large spills by 13% compared to the 2019-2022 average.
- Reduced environmental exceedances by 24% compared to 2022.
- Achieved a 38.7% carbon intensity reduction in 2023 vs 2008 IMO baseline for our ocean-going fleet.
- Reduced total waste by 18% compared with 2021.
- Reduced freshwater intensity at Vencer by 12%.
Social Achievements
- Conducted 12 on-the-ground ESG audits across Europe, the Americas, Africa and Australasia.
- Hosted an ESG networking and knowledge-sharing event with 17 of our largest portfolio companies.
- Maintained alignment with the Voluntary Principles on Security and Human Rights (VPSHR).
- Improved seafarer satisfaction scores across various areas.
Governance Achievements
- ESG Committee met seven times during the year.
- Continued to meet the conditions of the 2020 Deferred Prosecution Agreement (DPA).
- Implemented additional TCFD recommendations, including evolving strategy by segment and geography, assessing climate-related risks and opportunities, expanding disclosures on climate-related risk management, and undertaking an initial assessment of avoided GHG emissions.
Climate Goals & Targets
Long-term Goals:
- Net-zero emissions
Medium-term Goals:
- Achieve IMO’s 2030 carbon intensity reduction target of -40% by end-2024.
Short-term Goals:
- Reduce volume of substances from large spills by 10% by 2025.
- Reduce number of large spills by 10% by 2025.
- Reduce TRIR by 5% by 2025.
- Reduce LTIF by 10% by 2025.
- Reduce Tier 1 process safety events by 10% by 2025.
Environmental Challenges
- One fatality related to a third-party trucking contractor.
- Increased Total Recordable Injury Rate (TRIR) in non-controlled activities.
- Three prosecutions or enforcement actions by environmental regulatory authorities.
- Unpredictable energy demand patterns impacting the setting of absolute emission reduction targets.
- Data quality and reliability challenges due to the extensive number of data points.
Mitigation Strategies
- Careful investigation of the fatality incident and implementation of remedial measures.
- Root cause analysis of incidents leading to work-related fatalities, LTIs, and PSE1s, and collaboration with portfolio companies to improve performance.
- Collaboration with portfolio companies to improve performance on environmental exceedances and large spills.
- Ongoing dialogue with banks regarding ESG expectations and energy transition targets.
- Prioritization of data quality and reliability improvements to meet 2025 targets.
Supply Chain Management
Responsible Procurement
- ESG clauses in haulier contracts
Climate-Related Risks & Opportunities
Physical Risks
- Extreme weather events
- Rising mean temperatures
- Extreme variability in weather patterns
- Rising sea levels
Transition Risks
- Rising price of GHG emissions
- Increased regulatory requirements
- Costs to transition to lower carbon intensity technology
- Changing counterparty behavior
- Uncertainty in market signals
Opportunities
- Resource efficiency
- Low-carbon energy usage
- Development of low-carbon products and services
- Access to new markets
- Redundancy and diversification in supply chains
Reporting Standards
Frameworks Used: GRI Standards, TCFD recommendations, IPIECA sustainability and GHG reporting guidance, WRI and WBCSD GHG Protocol
Sustainable Products & Innovation
- Renewable power
- Biofuels
- Carbon credits
- Pyrolysis oil