ESG Report

The ESG framework sets out the requirement for investments to submit ESG KPIs via Vitol’s web-based platform. Vitol has over 40 ESG KPIs aligned with relevant industry-accepted definitions. Monitoring KPIs enables Vitol to understand performance, take appropriate action and is one element underpinning our audit programme.

Vitol treats both operationally and non-operationally controlled investments the same in terms of KPI reporting. We need to monitor the performance of any investment in which we hold shares. All investments with operational activities (e.g. a refinery, a windfarm or solar infrastructure) where Vitol holds an equity interest must report the relevant ESG KPIs regardless of how small the percentage of equity ownership. Over 50 businesses and Vitol offices are currently reporting data. During 2022 we continued to include KPIs from some Vitol operations (e.g. truck and rail movements) across different geographies such as the Americas and Africa, and this will continue during 2023.

Vitol runs a risk-based on the ground ESG audit programme. Each year portfolio companies are appraised against the ESG framework and a bespoke audit protocol. The duration of each audit depends on factors such as location, asset complexity, geographic profile and asset risk score. Third party advisers or guest auditors are engaged where required to bring an independent or specialist perspective to these reviews.

Each audit follows the same process, observations are ranked against the Vitol risk matrix, discussed with local and Vitol management, recommendations for improvements made and timelines agreed upon. ESG findings of particular concern are reported to the Board and the ESG department will work with the relevant company to implement the required changes. 2020 and 2021 were severely hindered by the Covid-19 pandemic. We have set two targets for 2023. First, to undertake 10 ESG audits or human rights reviews and second, to close out 50% of findings from ESG or human rights reviews in line with agreed deadlines.

Vitol’s ESG department provides additional ad hoc support to matrices and operations, e.g. for new business activities or when entering into new jurisdictions.

Vitol undertakes ESG due diligence in close collaboration with our investments and origination teams on all potential acquisitions, and uses external consultants as necessary. Due diligence scope will depend on various risk factors: location, previous owners, operating partners, the risk to rightsholders, as well as business activities and other factors.

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. Vitol’s incident management system ensures any incident outside of the ESG KPI platform is captured in real time. Typically, these relate to minor and common shipping incidents. Reported incidents are communicated to the incident management committee immediately. This system provides 24-hour, 365-day coverage.

The Vitol ESG and operations departments continue to develop tailored training to relevant internal stakeholders. Over 20% of our current global employees and EMEA new joiners were trained in incident management, ESG topics, emergency response, and US port security regulations in 2022.

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. In 2023 we intend to focus more on this network to enhance knowledge sharing, to this end we will also hold a face-to-face ESG networking event for relevant companies in which Vitol is invested.