Trafigura has minimum HSEC expectations for the following high-risk activities listed below:

  • Waste slops handling;
  • Ship-to-ship hydrocarbon transfers;
  • Trucking contractors;
  • Oil and bulk liquid terminals;
  • Warehouse and bulk storage.

Our requirements have been designed to identify and avoid using poor performing contractors who are more likely to have an incident. Each assessment is based on a two-stage due diligence process.

When a new contractor is under consideration, Trafigura conducts its KYC process and performs a Phase 1 assessment, comprising an initial, desk-based review. The contractor is required to confirm its ability to meet our minimum HSEC expectations, including whether it has competent staff, sound maintenance procedures and the necessary equipment to perform safely.

Those that pass the Phase 1 assessment meet minimum expectations and are approved. Within a set timeframe those approved receive an onsite inspection (Phase 2) that is designed to verify the Phase 1 assessment.

Those contractors that fail the inspection, but are willing and able to work with Trafigura to improve, can gain temporary approval while they upgrade their processes. Those that fail Phase 2, or are unable or unwilling to do this, are rejected.

In 2018, our worldwide due diligence activities resulted in:

  • 403 contractor HSEC assessments considered;
  • 176 approved providers worldwide;
  • 202 contractors rejected;
  • 438 new contractors being actively assessed at year-end 2018.