Gunvor Group, one of the largest physical commodities trading companies in the world, announces its support of the Extractive Industries Transparency Initiative (EITI), the global standard for improving transparency of revenues from natural resources.
“Gunvor’s support for the EITI reflects our commitment as a trading house to uphold progressive policies and practices in the oil and gas sector,” said Torbjörn Törnqvist, CEO of Gunvor Group. “As one of the largest physical energy trading companies in the world, we recognize we have role in promoting transparency and accountability. The EITI will help us accomplish this in a commercially responsible manner.”
Gunvor becomes the second company focused exclusively as a commodities trading house to express support for the EITI, and will join around 60 oil, gas and mining companies that support the organization from the extractive industries.
The disclosure of the payments to governments for oil sales aims to reduce the risk of corruption and improve the accountability of state-owned enterprises that sell oil and gas on behalf of the government. Gunvor trades with more than 100 countries, a number of which are EITI members.
The EITI was established in June 2003 as a global coalition of governments, companies and civil society organizations working together to improve openness and accountability in management of revenues from natural resources. It has a Standard for the governance of the mining and oil production industries.
Gunvor’s support for the EITI includes a new policy that will establish the voluntary disclosure of information that aligns with EITI principles and transparency requirements. This includes information about its first purchases from national oil companies for crude oil and petroleum products, including gas, among other relevant tax and license information. The EITI is an evolving Standard. Gunvor expects that its disclosure will change over time in line with the EITI and stakeholder consultation. The information will be published in Gunvor’s annual Group Sustainability Report.