Extractive Commodity Trading Report 2021

Extractive Commodity Trading Report 2021

This report presents the findings of a pilot study on ESG due diligence and transparency policies and practices among a sample of 25 companies in the extractive commodity trading sector. The 25 geographically dispersed companies have significant activities in the trade of oil, gas, metals or minerals sourced from third parties, and include traditional trading companies, international oil companies, and integrated companies (involved in both production and trading). The study covers publicly-listed and private companies and state-owned enterprises.

The assessment, based on public domain data, covers ESG measures relating to four categories of issues in the companies’ supply chains: human rights, corporate governance, financial flows and the environment. The results show that while corporate commitments on ESG issues are relatively widespread, these commitments are rarely shown to be translated into systematic measures. Due diligence systems, where they exist, tend to focus more on the identification of ESG risks than on the assessment and management of these risks. Evidence is weakest on companies measuring how effectively they are avoiding ESG risks such as human rights abuses, bribery and corruption and illicit financial flows.

 

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Additional information

Author(s)

Responsible Mining Foundation

Year

2021

Keywords

Commodity Trading, Due Diligence, ESG, Minerals & Metals

Publication Type

Report