Responsibility in Physical Trading.
A public overview of environmental, social and governance topics that may be relevant to a transaction.
Questions vary by activity and jurisdiction.
Physical commodity trading can involve environmental, social and governance questions across several parties. The topics below are general considerations. They do not state that a particular standard, certification or procedure applies to every transaction.
Environment
Environmental questions may depend on the cargo, vessel, terminal and jurisdictions involved.
- Applicable vessel and transfer documentation
- Pollution-prevention requirements where relevant
- Availability and quality of supplier emissions information
- Electronic documentation where accepted by the parties
Social
Social considerations may arise in operations, contracting and supply-chain review.
- Health and safety information relevant to the activity
- Labor and human-rights concerns identified during review
- Contractual responsibilities of the parties
- Escalation of material concerns where appropriate
Governance
Governance review may address authority, ownership, conduct and allocation of responsibility.
- Anti-bribery and anti-corruption considerations
- Counterparty identity and ownership information
- Conflicts, approvals and delegated authority
- Methods for raising and reviewing concerns
Transaction-specific requirements should be confirmed from current contracts, official sources and qualified advisers where needed.