Mercuria CSR Report 2024 - Flipbook - Page 27
MARKETS
OPPORTUNITY
HORIZON*
POTENTIAL FINANCIAL IMPACTS
MITIGATION MEASURES
Access to new markets.
SML
Investments in new markets
increasing revenue streams.
We diversify the product types we trade and
invest in a broad array of assets across various
geographies, thereby increasing our revenue
streams.
Access to new revenue streams
through financing carbon creditgenerating programs.
SML
Generation of additional revenue
from the generation or trade of
carbon credits, while supporting
decarbonization goals.
Through our climate investment vehicle,
Silvania, we identify and finance projects that
generate high-quality carbon credits, such as
nature-based solutions and emissionsreducing technologies. These initiatives allow
offset our footprint and create new commercial
opportunities aligned with our sustainability
strategy.
POTENTIAL FINANCIAL IMPACTS
MITIGATION MEASURES
RESILIENCE
OPPORTUNITY
HORIZON*
Access to efficient energy.
SML
Reduction in costs and emissions.
Our trade of cleaner forms of energy and
investments in greener energy provide crossoperational synergies and access to more
efficient energy resources.
Investing in circular economy.
SML
Investing in assets that use waste as
input. This increases efficiency, opens
new revenue streams, and reduces
waste.
We are expanding our investment portfolio by
continually adding assets that convert waste
into green energy.
* Horizons are short 1 year (S), medium 2-5 years (M), and long above 5 years (L)
RISK MANAGEMENT
Mercuria’s strategic approach is aligned with its risk
management framework. Risk management is a core
function of the company, encompassing a wide range of
areas including investments, trading activities, market
dynamics, and the energy transition. This approach
addresses both transitional and physical climate-related
risks, which are continuously monitored and proactively
mitigated.
In relation to the management of physical risks, we
undertake continuous due diligence of our asset holdings
as highlighted in our Health, Safety, Security and
Environmental (HSSE) section.
Please refer to Risk & Opportunity Oversight for more on our
risk management.
We have shifted away from only trading oil toward a
diversified portfolio with lower carbon energy sources. This
diverse product mix provides a hedge against the impact of
policy and regulatory changes on specific products in
particular locations. Additionally, it opens access to new
markets and potential revenue streams. This year, we have
expanded our metals business and started trading critical
minerals as part of our commitment to the energy
transition.
We also capitalize on diverse investment opportunities,
ranging from different types of assets, industries, and
geographic locations. As covered by the investments
section, our portfolio includes investments in sectors critical
to powering the energy transition designed to mitigate the
array of risks previously outlined. Furthermore, to enhance
our understanding of new markets and incorporate varied
perspectives into our investment decisions, we have
strategically expanded our investment team to include
professionals from a broad spectrum of relevant
backgrounds. We have strengthened expertise within our
analytics, trading and operational teams, enhancing our
operations and driving greater profitability.
Mercuria Corporate Social Responsibility Report 2024 | 27
