Mercuria CSR Report 2024 - Flipbook - Page 18
PLANET 2024
Our approach, in order of priority, consists of the following
steps:
Reported Emissions: We report on emissions data reported
in regulatory filings for our assets.
Primary Data Collection: We collect primary data (e.g., actual
consumption figures from invoices and management
reports) to quantify emissions.
Estimation with Derived Figures: When neither reported
emissions nor primary data are available, we estimate
emissions by applying derived figures to activity-based data.
Our emission factors are derived mainly from IPCC, ISO,
DEFRA, EPA, and IMO. We update these factors annually to
reflect the most recent publication versions and have also
had them independently verified by Validere for accuracy
and reliability.
ORGANIZATIONAL FOOTPRINT
We report our organizational footprint based on the GHG
Protocol equity share approach. Asset emissions are
calculated based on Mercuria’s percentage equity share of
each asset. Equity share gives a better reflection of our
business model compared to the operational control basis
as we are not primarily an operator of assets.
The assets we own and operate cover a wide range of
energy and energy-transition related assets. This includes
terminals and warehousing for storage, bunkering vessels,
renewable fuel refineries, gas and power assets, forestry and
mining activities.
On an equity share basis, we have accounted for emissions
from the chosen activities and investments in companies
where our ownership exceeds 20%. The rationale for
selecting this threshold is twofold: obtaining accurate data
becomes considerably more difficult below this equity level
and stakes smaller than this threshold contributes
insignificantly to the overall emissions footprint.
These assets and investments include two bio-refining, two
mining, six upstream oil and gas, one forestry, one
warehouse, one alternative fuel, five terminals, a bunkering
and freight businesses. The emissions also include Mercuria
offices, data centres, transportation via ship or pipeline and
business flights for Mercuria employees.
SCOPES
The following is reported in the GHG protocol scopes:
Scope 1 3 Direct emissions
•
Mercuria assets, activities and companies we invest in:
direct emissions from operational activities, which
includes stationary and mobile combustion, flaring and
venting and other related operational emissions.
•
Direct emissions from shipping activities performed by
vessels owned by Mercuria.
Scope 2 3 Indirect energy imports
•
Mercuria assets: purchased electricity, steam, heating
and other energy imports.
•
Mercuria offices and data centres: electricity and gas
purchased.
SCOPE OF REPORTING
For the scope of this report, our focus is on assets and
activities identified to have the largest impact in terms of
emissions. This includes activities that involve combustion
of fossil fuels and processes prone to atmospheric emissions
through venting or similar processes. The largest sources of
emissions include oil and gas production, biofuel refining,
mining and transportation activities. Assets in the
development stage, deemed to have a negligible GHG
footprint, have been excluded from our analysis. We remain
committed to periodically reevaluating their significance
and will incorporate these assets into our reporting scope as
they progress and develop further.
Scope 3 3 Selected categories
•
Category 6: Upstream 3 Business travel
• Reported For Mercuria’s business flights.
•
Category 8: Upstream 3 Leased assets
• Reported for Mercuria’s time chartering of vessels.
•
Category 9: Downstream 3 Transportation and
Distribution
• Reported for transportation of traded commodities
via gas pipeline or marine vessel.
ENERGY MIX
Over time, we’ve strategically diversified our portfolio
through both organic growth and acquisitions, intentionally
moving from a heavy reliance on oil to embracing lower
carbon alternatives. Our business, once predominantly oilbased, has evolved and diversified significantly. We now
emphasize gas and power trading, a shift clearly illustrated
in the historical data figure on our traded volumes by
product type. The ratio of oil to non-oil trades in our portfolio
has declined significantly since our inception.
towards more sustainable energy sources is crucial for the
future of our energy infrastructure. We firmly believe in the
ongoing importance of gas within this mix, given its role as
a more environmentally friendly option compared to
traditional high-carbon fuels and its reliability in supporting
the integration of renewable energy sources.
The diversification of our portfolio is part of our
commitment to the energy transition. The transition
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