Vitol Energy Transition Initiative (VETI)

Energy Transition

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Implementing change

Vitol Energy Transition Initiative (VETI) 2022

Launched in 2020 to evolve and implement our business strategy, we have structured our efforts through the VETI, which focuses on three core objectives underpinned by nine workstreams, involving over 100 employees to deliver on our key priorities.

Launched in 2020, the VETI involves over 100 employees to deliver on our key priorities

OBJECTIVES WORKSTREAMS 2022 ACHIEVEMENTS

Grow low-carbon opportunities

Sustainable investments

Invest capital and acquire sustainable projects and assets

  • Onboarded new solar & wind energy projects, growing our renewable power generation operational capacity to 1.2 GW (more than doubled since 2021)
  • Committed another $800 million to sustainable investments in 2022, exceeding $2bn in capital committed since 2018
Trading opportunities

Structure innovative transitional and sustainable products
and solutions,* educate the market, and provide access

  • Broadened carbon dataset to improve counterparty understanding of product carbon footprint via Vitol Energy Transition Solutions (VETS)
  • Grew share of transitional energy volumes delivered to 32% from 26% in 2021
Environmental products and solutions

Route to market for the highest quality compliance
and voluntary carbon credits and offsets**

  • Built new partnerships with state entities and developers across a range of projects (e.g., forestry, sustainable farming, water purification) supporting local communities
  • Traded over 100 Mt CO2e of carbon products in 2022

Manage climate-related risks and decarbonisation

Investment portfolio

Drive climate-risk management and decarbonisation across our assets

  • Reviewed physical climate risk mitigation planning for key assets in upstream, power generation and downstream segments
  • Developed short- and mid-term GHG emissions forecast per investment
Transportation

Reduce GHG footprint of our vessel fleet and optimise logistics

  • Ordered energy-saving technologies for our tanker fleet
  • Disposed of older, less energy efficient ships
Offices

Limit the environmental impact of our offices and business travel (e.g. power consumption, waste, flights)

  • Drafted an office sustainable procurement policy, rolled out in our major offices
  • Reduced office waste by recycling and composting

Provide transparency and take action

Data capture and internal reporting

Measure our GHG footprint and provide internal transparency on climate-related metrics and trends

  • Improved our GHG footprint engine to cover additional scope 3 categories and increase data accuracy, and estimated our shipping black carbon emissions
  • Built out carbon intensity (CI) reporting across our business segments
Energy transition planning

Adapt our approach to emerging trends and new science, and integrate climate change impacts into decision-making

  • Streamlined VETI and further formalised our energy transition strategy
  • Reviewed climate-related risks and opportunities for our business
  • Aligned internal stakeholders on key metrics tracked to inform decisions
ESG communications

Communicate with stakeholders on our ESG efforts

  • Conducted stakeholder engagement and materiality assessment efforts
  • Enhanced our TCFD disclosures in line with the roadmap
*E.g., renewable power purchase agreements (PPAs), sustainable aviation fuels (SAF), carbon offset bundling with energy products.
**Removals (carbon sinks, e.g., afforestation and reforestation projects), avoidance (e.g., energy-efficient cookstove and water purifier distribution projects).

Our energy transition ambitions

VITOL'S APPROACH TO THE ENERGY TRANSITION

Investments

  • Continue to increase investment in sustainable solutions.
  • Keep developing additional renewable power generation projects.

Trading

  • Continue to increase the volume of sustainable and transitional commodities traded year-on-year.
  • Grow our carbon trading volumes to reach a size that is comparable to our presence in crude oil and products trading.

Shipping

  • Optimise the operational, technical and fuel use performance of our controlled vessels to reduce emissions.
  • Continue to reduce the carbon intensity of our vessel portfolio and to introduce on-board efficiency programmes across the fleet. Achieve IMO’s 2030 carbon intensity reduction target of -40% from a 2008 baseline as early as the end of 2024.

Decarbonisation

  • Monitor carbon intensity across shipping, upstream, power generation and refining. Report on this in future years.
  • Use our Board membership in companies in which we are invested to integrate decarbonisation into business plans.

Governance

  • Keep embedding TCFD recommendations into our energy transition strategy, in line with our roadmap.

VITOL’S APPROACH TO THE ENERGY TRANSITION

The energy value chain

Traditional

Crude oil & products, e.g. gasoline, naphtha, jet, gasoil, fuel oil, bitumen

Transitional

Natural gas & LNG, NGLs & LPG, biofuels & recycled carbon fuels, non-renewable power

Sustainable

Renewable power & batteries, EV charging and services, green fuels, e.g. hydrogen, biogas, methanol, ammonia, carbon capture, utilisation, and storage, carbon credits & offsets, renewable energy certificates (RECs)

Investments ensuring reliable energy production

  • ~60 kboepd oil & gas upstream assets in the US and West Africa
  • 3.3 GW of gas-fired power generation capacity
  • 1.2 GW of operational renewable power generation capacity

Investments ensuring reliable energy access across markets

  • Controlled fleet of 60+ ships, and
  • 6,000+ sea voyages in 2022
  • 17+ M m3 in oil & products storage including LNG and LPG

Investments ensuring reliable energy delivery to end-users

  • 500+ kbpd nameplate capacity from 6 refineries
  • ~7,000 service stations worldwide

Traditional

Crude oil & products, e.g. gasoline, naphtha, jet, gasoil, fuel oil, bitumen

Transitional

Natural gas & LNG, NGLs & LPG, biofuels & recycled carbon fuels, non-renewable power

Sustainable

Renewable power & batteries, EV charging and services, green fuels, e.g. hydrogen, biogas, methanol, ammonia, carbon capture, utilisation, and storage, carbon credits & offsets, renewable energy certificates (RECs)

Investments ensuring reliable energy production

  • ~60 kboepd oil & gas upstream assets in the US and West Africa
  • 3.3 GW of gas-fired power generation capacity
  • 1.2 GW of operational renewable power generation capacity

Investments ensuring reliable energy access across markets

  • Controlled fleet of 60+ ships, and
  • 6,000+ sea voyages in 2022
  • 17+ M m3 in oil & products storage including LNG and LPG

Investments ensuring reliable energy delivery to end-users

  • 500+ kbpd nameplate capacity from 6 refineries
  • ~7,000 service stations worldwide