Powering the future with purpose
ESG report 2024: Traditional, transitional & sustainable
Download full reportA global energy and commodities company
Serving evolving needs
With a presence across the energy spectrum from traditional, through transitional and to sustainable energy, Vitol leverages its market leading expertise and global scale to deploy energy solutions.
We anticipate the world will continue to require traditional energy sources, including hydrocarbons, for at least the next decade. This will ensure an affordable supply of energy is available to assist in the transition to a lower carbon society.
Our energy solutions
Vitol trades and delivers energy and commodities safely and responsibly across three pillars
Traditional energy
We are the leading independent trader of crude oil and products. This position is bolstered by strategic investments in vessels, storage terminals, upstream production, refineries, pipelines and service stations.
Transitional energy
With a strong track record in LNG, LPG and power trading, and a growing investment footprint, we are positioned to deliver comprehensive multi-fuel and decarbonisation solutions globally.
Sustainable energy
We are advancing a diverse portfolio of sustainable initiatives, including solar, wind, battery storage, renewable natural gas (RNG), electric vehicles (EVs) and carbon credits, while utilising the strengths of our trading expertise.
Vitol ESG strategy
Championing safe and responsible operations
Throughout 2024, we continued to roll out our ESG strategy by prioritising safe and reliable operations, respecting human rights and striving to minimise its environmental footprint.
At its core, our mission is to deliver the energy and raw materials the world currently depends on, while contributing to the transition towards a lower-carbon future, safely and reliably. Our ESG strategy is made of seven building blocks, split across trading operations and our investment portfolio.
Trading operations
Refers to Vitol-led initiatives and activities such as trading and physical operations.
Increase earnings
ESG performance directly contributes to sustainable profits. The progress we have made under the Vitol Energy Transition Initiative (VETI) directly translates to increased earnings.
Manage operational risks
Understanding and managing ESG risks across transactions helps us to carefully manage operational risks. During 2024, we undertook risk based ESG due diligence on all companies in which we took equity and increased the breadth of our ESG KYC (Know Your Counterparty) activities.
Address legal & regulatory matters
Positive ESG performance helps to reduce Vitol’s risk of adverse legal action. Shortcomings generally lead to downside risk. We continue to keep abreast of, and comply with ESG regulations across our activities.
Sustain talent & productivity
A strong ESG proposition helps to retain and attract talent. Our ESG report received positive feedback from stakeholders, particularly employees and new joiners, who appreciate transparency around our role as an energy trader and how we embed ESG across our business.
Investment portfolio
Refers to companies in which Vitol is invested and where Vitol allocates capital.
Optimise resource use & cost efficiency
Optimising resources is better for the environment and makes economic sense. We continue to review resource consumption and encourage improved efficiency across our portfolio.
Meet the highest ESG standards
Strong ESG performance is an enabler and reduces the risk of adverse business impacts. Undertaking more than 15 audits, reviews and integration visits, monitoring, analysing, and reporting lagging and leading ESG KPIs has facilitated an improved performance and acts as a precursor to negative events.
Rebalance capital allocation
Allocation of capital to transitional and sustainable business opportunities e.g. renewables, environmental products trading and LNG enhances the sustainability of Vitol’s business.
Vitol ESG framework
Our approach to Environmental, social & governance
Vitol has always been focused on the safety and environmental risks associated with its operations.
We continue to invest in physical assets with diverse ESG standards, some of which are majority-owned and controlled, and others via partnerships or minority stakes.
Vitol ESG framework covers all business activities and sets out Vitol’s beliefs and requirements. Vitol expects companies in which we have a shareholding to follow these or similar standards, but recognises our influence will be commensurate with our shareholding.
During 2024 we continued to work with current and newly acquired businesses to implement and embed the requirements of the ESG framework, and provide general ESG support in an ongoing process.
ESG performance monitoring
We have over 40 ESG KPIs aligned with relevant industry-accepted definitions. Monitoring KPIs enables us to understand performance, take appropriate action and is one element underpinning our audit programme.
ESG audit programme
We run a risk-based on the ground ESG audit programme. Each year portfolio companies are appraised against the ESG framework and a bespoke audit protocol.
ESG due diligence
We undertake ESG due diligence in close collaboration with our investments and origination teams on all potential acquisitions, and uses external consultants as necessary.
Incident management
Vitol has an incident management process covering major incidents. It also includes links to function-specific response plans for areas such as IT security and cyber risk, or physical assets, e.g. shipping or upstream.
Training
The Vitol ESG and operations departments continue to develop tailored training to relevant internal stakeholders.
ESG network
The Vitol ESG network was established in 2020 as a support mechanism for managers from the portfolio companies. They can seek advice from peers, raise concerns and share results from incident investigations.