Energy Trader Gunvor To Cut Scope 1 & 2 Emissions 40% By 2025
New entity Nyera to target sustainable investments in renewables, carbon capture
GENEVA, March 30, 2021 /PRNewswire/ -- Gunvor Group, one of the world's largest physical energy commodities traders, has announced commitments in the areas of environment, social, and governance (ESG) targeting a 40% reduction in the company's Scope 1 and 2 emissions by 2025. The commitments come as a part of Gunvor's Sustainability Commitments 2021 document, which outlines how the company is navigating the Energy Transition.
For Gunvor, the two most significant activities that generate greenhouse gas emissions are the company's industrial activities, specifically its European oil refineries, and its shipping fleet, both owned and chartered. Gunvor has committed to taking significant steps to reduce and/or compensate scope 1 and 2 emissions by 35% and 95%, respectively, by 2025.
Overall, Gunvor commits to both further improve the environmental impact of its current trading portfolio and invest in new sustainable commodities and businesses. The company determines that steps must be taken today to effectively manage, limit, and where possible eliminate emissions, given the role hydrocarbons play in the global energy mix today. At the same time, the commercial viability of sustainable sources of energy is being increasingly realized. As new commodities enter and grow, Gunvor will be a part of ensuring their safe and efficient movement to help balance markets.
Gunvor's 2021 Sustainability Commitments charter lays out the details of the plan. Gunvor Group has already begun to undertake the following:
- Established dedicated vehicle, Nyera (Swedish: "New Era"), to formalize nonhydrocarbon investments comprising a minimum of 10% of net equity that, with leverage, is expected to amount to a commitment of at least half-billion dollars (USD).
- Areas of Nyera's focus include carbon capture and storage, renewable fuels, renewable power, and alternative fuels, including ammonia and hydrogen.
- Company's major credit lines will continue to embed specific sustainability-linked goals with linked KPIs.
- For existing and new trading, dedicated programs will be established to reduce emissions and environmental impact, while taking into account human rights considerations, in line with our commitment to the UNGPs on Business & Human Rights.
- Emissions from refineries will continue to decrease compared to 2019, through efficiency projects and a switch to renewable and carbon neutral electricity.
- 100% of owned ships and 75% of time charter shipping fleet will be "eco-vessels" by 2022, with an overall 100% before 2027.
- Gunvor is in the process of finalizing its assessment of Scope 3 emissions, including those linked to the traded commodities and voyage charters; the company commits to follow the IMO improvement in efficiency targets of 40% by 2030, as per Gunvor's membership in the Sea Cargo Charter.
Additional detail can be found in the four-page Sustainability Commitments 2021 document.
As a leading global physical commodities trading company, Gunvor Group is inherently equipped to be responsive to market changes, and the company's success over the last 20 years is based on its ability to do so. While Gunvor has historically focused on the safe and efficient movement of crude oil and oil products, the company has been for more than a decade diversifying into new commodities and strategies in response to shifting markets and opportunities.
About 50 percent of Gunvor's trading today consists of "transitional" commodities, based on the EU Taxonomy, which includes biofuels, natural gas, and liquefied natural gas (LNG). The company has also ceased physical coal trading and acquired biofuels plants. Gunvor was the first physical energy trader to launch a sustainability-linked financing, directly tying its performance in 15 different ESG criteria (including emissions reduction) to the interest rate of a facility.
About Gunvor Group
Gunvor Group is one of the world's largest independent commodities trading houses by turnover, creating logistics solutions that safely and efficiently move physical energy from where it is sourced and stored to where it is demanded most. With strategic investments in industrial infrastructure—refineries, pipelines, storage and terminals—Gunvor further generates sustainable value across the global supply chain for its customers. For more information, go to www.GunvorGroup.com
Contact:
Seth Thomas Pietras,
Corporate Affairs Director,
Gunvor Group,
+41 79 879 6290,
[email protected]
SOURCE Gunvor Group
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