Environmental, Social & Governance (ESG) is an integral business consideration. Vitol’s ESG framework sets out our beliefs and requirements. We expect all the companies in which we are invested to follow these or similar standards.
Our operations should be safe for employees, (sub)contractors, neighbouring communities and the environment – we commit to ensuring ESG considerations are integral to our business.
We aim for a zero-harm approach – we commit to reporting, investigating and learning from incidents and near misses.
We recognize the importance and fragility of the environment – we commit to seeking to minimise our impact on the environment through upholding high ESG standards.
A risk-based approach is the most suitable to manage the complex environments and geographies in which we operate – we commit to implementing this rigorously.
All our operations should be compliant with the applicable legislative and regulatory regimes – we commit to support this, as well as our ESG framework, through ensuring the appropriate processes, resources and systems are in place.
We are committed to respecting all internationally recognized human rights – we will seek to conduct our business in accordance with the UN Guiding Principles on Business and Human Rights, whilst striving to improve year on year.
Monitoring and tracking
We must monitor our performance and continuously try to do better – we commit to monitoring, tracking and disclosing our performance as well as raising targets and using auditing to improve our ESG performance.
We recognise the importance of communication and transparency – and commit to communicating appropriately with all key stakeholders.
Responsibility is core to Vitol’s culture – we commit to assuming responsibility for our actions as individuals, as a team and as a corporate group.
Six pillars of activity
Each pillar has clearly defined objectives to ensure the business’s ESG performance improves continuously.
ESG performance is routinely reviewed by the board. All investments above a certain threshold are expected to report detailed ESG data which is monitored and evaluated by the ESG team. Additional oversight is provided at the asset board level where any Vitol representatives are expected to represent the need for industry leading standards of ESG. They are supported in this by the ESG team.About
Human rights are an integral part of the Vitol’s ESG approach and risk management framework, with a particular focus on three UN SDGs: Decent work and economic growth, Reduced inequalities and Peace, justice and strong institutions. Human rights risks across the business are assessed, in close collaboration with compliance and other areas of the business. Potential impacts are mapped and the appropriate procedures and controls are developed.
We have a solid climate risk governance framework with effective and robust controls commensurate to the nature, scale and complexity of the risks we fact through our investments and as part of our operations and trading activities. The four core objectives are: measure GHG footprint and develop internal carbon reduction incentives, reduction of current footprint, grow low-carbon opportunities, report and communicate
Education and training
The ESG team work continuously with current and newly acquired businesses to implement and embed the ESG framework, acting as a sounding board for our investment companies. Within Vitol, ESG provides tailored ESG related training to employees and new joiners.
A risk-based ESG audit programme is implemented across all investments, with assets being assessed against the ESG framework and a bespoke audit protocol which takes into account location, asset complicity, geographic profile and risk. In addition to regular audits, separate human rights reviews are undertaken and asset-wide performance tracked on the risk register.
Vitol has more than 40 KPIs covering human resources, personal safety, process safety, environment, auditing, human rights, security and community topics. We do not differentiate between investment based on operational control and all investments with operational activities must report the relevant ESG KPIs, regardless of size of Vitol’s shareholding.