We seek to build trust and facilitate constructive, open dialogue with the many stakeholders associated with our business. Engaging transparently about our approach and our performance helps us manage risk, drive improvements and identify opportunities. It also helps us understand and respond to the topics and issues that matter most.
Our activities generate economic and social benefits, and stimulate development in local communities and national economies. We create employment, develop skills, build infrastructure and procure from local suppliers.
At the same time, we recognise the risk that our business activities can cause adverse impacts. We endeavour to mitigate risks by acting responsibly and by exercising diligence in appointing suppliers and contractors. And where we have contributed to or are linked with negative impacts, we monitor closely, manage or mitigate those risks and encourage our counterparties and business partners to do the same.
Internationally, we are committed to contributing pro-actively to dialogue on impacts related to the commodities trading sector, the geographies in which we trade, our business relationships, and the services and products we handle.
Trafigura is committed to responsible sourcing. We seek to identify and mitigate salient health, safety, social and environmental risks in our supply chain. We prioritise suppliers that can demonstrate a programme of continuous improvement that aims to meet or exceed our own high standards of corporate responsibility.
The commodity trading industry is subject to rapidly evolving legislation, regulation and industry and international best practice standards. These frameworks have a direct and indirect bearing on how Trafigura – and its customers – do business. They include the London Metal Exchange (LME) responsible sourcing requirements, the EU and US Conflict Minerals regulations, modern slavery laws and the various responsible sourcing standards, guidelines and requirements issued by relevant industry associations.
Founded on Trafigura’s ‘Corporate Responsibility Policy’, ‘HSEC Business Principles’ and ‘Metals and Minerals Responsible Sourcing and Supply Chain Expectations’, our responsible sourcing management system framework and approach is also aligned with the OECD’s ‘Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas’ (the OECD Guidance), amongst other international standards.
The Extractive Industries Transparency Initiative (EITI) is a global standard that promotes transparency and accountability in the oil, gas and mining sectors. In 2014, Trafigura became the first independent commodity trading company to publicly support the EITI and to develop a disclosure policy in collaboration with the organisation.
Improved transparency not only builds trust with producer governments and civil society – it also helps facilitate access to capital from financial institutions. For Trafigura, our commitment to transparency also yields an important competitive edge.
Over recent years, Trafigura has taken a number of important steps to advance commodity trading transparency. Beyond our participation in the International Board of the EITI, as well as the Working Group on Transparency in Commodity Trading, we frequently engage with our existing as well as prospective commercial counterparts on such matters.