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New entity Nyera to target sustainable investments in renewablesRenewables: Renewables, also known as renewable energy sources, refer to sources of energy that are replenished naturally and are considered to be environmentally friendly and sustainable. Unlike fossil fuels, which... Read more, carbon capture

Gunvor Group, one of the world’s largest physical energy commodities traders, has announced commitments in the areas of environment, social, and governance (ESG) targeting a 40% reduction in the company’s Scope 1 and 2 emissions by 2025. The commitments come as a part of Gunvor’s Sustainability Commitments 2021 document, which outlines how the company is navigating the Energy TransitionEnergy Transition refers to the global shift from traditional fossil-fuel based energy systems to more sustainable and renewable sources of energy. It involves the gradual transformation of the energy sector,... Read more.

For Gunvor, the two most significant activities that generate greenhouse gas emissionsDescription: Greenhouse gas emissions refer to the release of gases into the Earth's atmosphere that contribute to the greenhouse effect and ultimately result in climate change. These gases trap heat... Read more are the company’s industrial activities, specifically its European oil refineries, and its shipping fleet, both owned and chartered. Gunvor has committed to taking significant steps to reduce and/or compensate scope 1 and 2 emissions by 35% and 95%, respectively, by 2025.

Overall, Gunvor commits to both further improve the environmental impact of its current trading portfolio and invest in new sustainable commodities and businesses. The company determines that steps must be taken today to effectively manage, limit, and where possible eliminate emissions, given the role hydrocarbons play in the global energy mix today. At the same time, the commercial viability of sustainable sources of energy is being increasingly realized. As new commodities enter and grow, Gunvor will be a part of ensuring their safe and efficient movement to help balance markets.

Gunvor’s 2021 Sustainability Commitments charter lays out the details of the plan. Gunvor Group has already begun to undertake the following:

• Established dedicated vehicle, Nyera (Swedish: “New Era”), to formalize non-fossil fuel investments comprising a minimum of 10% of net equity that, with leverage, is expected to amount to a commitment of at least half-billion dollars (USD).
• Areas of Nyera’s focus include carbon capture and storage, renewable fuels, renewable power, and alternative fuels, including ammoniaAmmonia is a colorless, pungent gas composed of nitrogen and hydrogen atoms, represented by the chemical formula NH3. It is widely used in various industries, including as a key component... Read more and hydrogenDescription: Hydrogen is the most abundant element in the universe, represented by the symbol H on the periodic table. It is a colorless, odorless, and highly flammable gas. In energy... Read more.
• Company’s major credit lines will continue to embed specific sustainability-linked goals with linked KPIs.
• For existing and new trading, dedicated programs will be established to reduce emissions and environmental impact, while taking into account human rights considerations, in line with our commitment to the UNGPs on Business & Human Rights.
• Emissions from refineries will continue to decrease compared to 2019, through efficiency projects and a switch to renewable and carbon neutral electricity.
• 100% of owned ships and 75% of time charter shipping fleet will be “eco-vessels” by 2022, with an overall 100% before 2027.
• Gunvor is in the process of finalizing its assessment of Scope 3 emissions, including those linked to the traded commodities and voyage charters; the company commits to follow the IMO improvement in efficiency targets of 40% by 2030, as per Gunvor’s membership in the Sea Cargo Charter.

Additional detail can be found in the four-page Sustainability Commitments 2021 document.

As a leading global physical commodities trading company, Gunvor Group is inherently equipped to be responsive to market changes, and the company’s success over the last 20 years is based on its ability to do so. While Gunvor has historically focused on the safe and efficient movement of crude oilCrude oil refers to unrefined petroleum that is found with the Earth’s crust. Read more and oil productsOil products, also known as petroleum products or refined products, refer to the various fuels and petrochemicals that are derived from crude oil refining processes. These products play a critical... Read more, the company has been for more than a decade diversifying into new commodities and strategies in response to shifting markets and opportunities.

About 50 percent of Gunvor’s trading today consists of “transitional” commodities, based on the EU Taxonomy, which includes biofuelsBiofuels are a type of renewable energy derived from biological sources, such as plants and animal waste. These fuels are used as an alternative to fossil fuels, with the aim... Read more, natural gasNatural gas is a fossil fuel composed mainly of methane, a hydrocarbon compound. It is formed deep beneath the Earth's surface as a result of the decomposition of organic matter... Read more, and liquefied natural gas (LNG). The company has also ceased physical coal trading and acquired biofuels plants. Gunvor was the first physical energy trader to launch a sustainability-linked financing, directly tying its performance in 15 different ESG criteria (including emissions reduction) to the interest rate of a facility.