Mercuria CSR Report 2024 - Flipbook - Page 26
PHYSICAL RISKS
RISK
HORIZON*
POTENTIAL FINANCIAL IMPACTS
MITIGATION MEASURES
SML
Reduced revenue from decreased
production capacity and damage of
assets.
To protect our assets from extreme weather
events, we implement rigorous due diligence
processes that focus on preventing
environmental damage, ensuring health and
safety, and comprehensive emergency
measures.
Changes in precipitation patterns and
extreme variability in weather patterns.
SML
Reduced mobility of our vessels,
leading to longer routes and higher
costs. Example is the Panama Canal
drought in 2023.
We have strengthened our shipping and
freight team with exceptional expertise,
optimizing shipping routes and effectively
minimizing costs.
Rising mean temperatures.
SML
Reduction in workforce productivity,
increasing health-related absences.
Our health and safety team actively monitors
the working conditions of our employees,
particularly those in the field, and develops
comprehensive mitigation strategies to adapt
to increasing mean temperatures.
HORIZON*
POTENTIAL FINANCIAL IMPACTS
MITIGATION MEASURES
Optimizing shipping and using more
efficient modes of transport.
SML
Vessels with higher ton-mile, leading
to reduced operational costs.
We have transitioned to greener, more efficient
vessels, enhancing our operational
sustainability and positively impacting our
profitability.
Waste management
SML
Enhanced resource efficiency has
resulting in reduced operating costs.
We have policies set to optimize waste
management for our offices and assets. We use
recycled water in mines and invest in assets
focused on circularity.
Water management
SML
More efficient water usage reducing
resilience on freshwater sources and
decreasing costs.
We use recycled water in mining operations.
HORIZON*
POTENTIAL FINANCIAL IMPACTS
MITIGATION MEASURES
Use of greener energy sources.
SML
Reduction in long-term energy costs
and access to more customers.
We diversify our traded products, making our
business dominated by gas and power instead
of oil. We investigate potential green sources of
energy in our assets. We use LED lights in
warehouse facilities, and use waste as a
production input in different assets.
Investment in greener technology.
SML
Diversify operations to hedge market
risks and provides cross-operational
synergies.
We have already accomplished our investment
target towards the energy transition and
continue investing in green technology.
HORIZON*
POTENTIAL FINANCIAL IMPACTS
MITIGATION MEASURES
Investment in low emission products.
SML
Increased revenue as demand for low
emission products increases.
We continue to diversify our portfolio to meet
changes in customer preferences and open
new revenue streams.
Investment in assets that provide
innovative, climate-friendly
technologies.
-ML
Increased revenue as demand for lowemissions solutions continues to
grow.
We invest in companies offering innovative
technologies that reduce reliance on critical
natural resources supporting both climate
goals and supply chain resilience. We also
invest in companies that offer carbon capture
solutions.
Acute
Extreme weather events affecting our
assets
Chronic
CLIMATE RELATED OPPORTUNITIES
RESOURCE EFFICIENCY
OPPORTUNITY
ENERGY SOURCE
OPPORTUNITY
PRODUCTS & SERVICES
OPPORTUNITY
* Horizons are short 1 year (S), medium 2-5 years (M), and long above 5 years (L)
Mercuria Corporate Social Responsibility Report 2024 | 26
