Trafigura joins EITI transparency initiative
Trading firm commits to commodities sector revenue transparency.
Geneva, 18 November, 2014 – Trafigura Beheer B.V., one of the world’s leading commodity trading firms, today announced its commitment to a new policy designed to encourage the disclosure of payments to governments by commodities traders under the auspices of the Extractive Industries Transparency Initiative (EITI), the global standard for improving transparency of revenues from natural resources.
As of today, Trafigura is formally declaring its support to the EITI, becoming the first commodity trading company to join the 90 oil, gas and mining companies already supporting the EITI. In a further step, it has published a policy on payments to Governments, drawn up in consultation with the EITI International Secretariat. The policy commits the company to disclosing Trafigura’s payments to governments in EITI compliant and candidate countries beginning in 2015.
“This policy reflects Trafigura’s commitment to transparency and accountability, as core components of responsible trade and better-governed natural resource sectors”, said Jeremy Weir, Trafigura Chief Executive Officer. “We believe that as a leading commodities trader we have a role in disclosing how much we pay to Governments and their National Oil Companies (NOCs), and that Governments have an important part to play in demonstrating how those proceeds have contributed towards socio-economic development. We believe that the EITI is the right mechanism for the disclosure of relevant information to citizens in a comprehensive and responsible manner.”
The disclosure commitment is the first of its kind from the commodities trading sector. It is an important step towards development of a disclosure standard for the trading industry within the EITI framework, a process Trafigura has committed to participating in actively in 2015. Trafigura’s decision to make these commitments follows engagement with stakeholders, including the Swiss Government.
Jonas Moberg, Head of the EITI International Secretariat, said: “We welcome Trafigura’s support of the EITI, and more importantly Trafigura’s unprecedented commitment to align its policy with the EITI Principles and transparency requirements. We hope that this will spur transparency and accountability in the commodity trading industry. The improved transparency will give citizens in the 48 EITI member countries the opportunity to examine their government’s sales of their natural resources.”
The EITI was established in June 2003 as a global coalition of governments, companies and civil society organisations working together to improve openness and accountability in management of revenues from natural resources. The body has traditionally focused on extractive companies in the mining and oil production industries. Extending EITI disclosures to the trading sector is thus a new and evolving part of the EITI Standard.
The scope of Trafigura’s policy will include disclosing payments to NOCs for crude oil and petroleum products, including gas. It will also cover corporate taxes and where relevant, licence payments to governments in the 48 EITI member countries. The company expects the disclosure model to evolve over time in alignment with EITI’s multi-stakeholder approach to policy development and stakeholder consultation.
For further information contact:
Trafigura’s Global Press Office: Tel: +41 22 592 4528 or Email: email@example.com
Founded in 1993, the Trafigura Group has become one of the world’s leading independent commodity traders, specialising in the oil, minerals and metals markets. Primary trading activities are the supply and transport of oil and petroleum products and non-ferrous and bulk commodities. The trading business is supported by industrial and financial assets including global oil products distribution company Puma Energy; joint venture company DT Group; global terminals operator Impala; Trafigura’s Mining Group and Galena Asset Management. The Trafigura Group is owned by over 700 of its almost 9,000 employees who work in 58 countries. The Group has been connecting its customers to the global economy for more than two decades, growing prosperity by advancing trade. www.trafigura.com