Globally, there is growing recognition of the importance of responsible supply chains – including those associated with the trade in extractive commodities (oil and gas, metals and minerals). Governments, financiers, customers and consumers are showing increased awareness of the need for the commodity trading industry to demonstrate more systematic action and transparency on environmental, social and governance (ESG) issues if internationally agreed aims on human rights, sustainable development and accountable financial flows are to be achieved.
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 report’s detailed results and analyses, the learning practices that are highlighted, and the interactive library of over 1,000 source documents that accompanies this report, offer an opportunity to the whole sector to redouble efforts to take stronger action on these critical issues. The study tested a simple evidence-based measurement tool and found it was applicable across the range of companies assessed.