ESG beliefs
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.
Safety
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.
Zero-harm
We aim for a zero-harm approach – we commit to reporting, investigating and learning from incidents and near misses.
Environment
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.
Risk-based approach
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.
Compliance
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.
Human rights
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.
Communication
We recognise the importance of communication and transparency – and commit to communicating appropriately with all key stakeholders.
Responsibility
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.
Governance
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
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.
Energy transition
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 portfolio companies. Within Vitol, ESG provides tailored ESG related training to employees and new joiners.
Risk management
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.
Reporting
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.
Vitol in focus
Other ESG reports
ESG Report 2022
Vitol has launched its third ESG report. It gives an overview of our business strategy in the context of the energy transition, and details our approach to a responsible way of operating that considers the environment and communities we have a presence in.
Download here
ESG Report 2021
Vitol is pleased to present its second ESG report. It is building on progress laid out in our first publication last year and outlining our strategy towards the energy transition.
Download here