COMMITMENTS
Gunvor to cut Scope 1 & 2 emissions 40% by 2025
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 environmental, social, and governance (ESG) criteria (including emissions reduction) to the interest rate of a facility.
To build on this record, Gunvor now commits to both further improve the environmental impact of its current trading portfolio and invest in new sustainable commodities and businesses. Decisions made will be done not only in response to our desire to uphold our position as a responsible company, but because Gunvor believes it is possible to do well by doing good.
Due to fundamental economic and logistics reasons, hydrocarbons will continue to be a part of the global energy mix for the foreseeable future. Therefore, steps must be taken today to effectively manage, limit, and where possible eliminate emissions.
The commercial viability of sustainable sources of energy is also 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.
As a part of these efforts, Gunvor Group has begun to undertake the following commitments:
Established dedicated vehicle, Nyera (Swedish: “New Era”), to formalize nonfossil fuel 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.