CASE STUDIES
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Human Rights
| Objectives | 2019 | 2020 | 2021 | 2022 | 2023 | Target | Status |
|---|---|---|---|---|---|---|---|
| % of assets covered by a human rights assessment | 20% | 60% | 100% | 100% | New wave of assessment preformed – 100% covered | Yearly review follow up in 2004 | Green |
| % of our JVs covered by a human rights assessment | 14% | 29% | 100% | Green | |||
| Carry out child labour risk assessment and implementation of mitigation measures | 100% | 100% | 100% thought it is an ongoing process | Green | |||
| Approved remediation plan following human rights assessment | 100% | 100% | 100% within 6 months of assessments | Green |
*except Ust Luga
2024 Objectives
Identification (and prevention) of risk and impacts
2023 Gunvor group risk mapping
In 2023, we have performed a human rights risk mapping of our activities and value chain based on the geographic origin of commodities and country human rights risk. This risk mapping is informed by the Verisk Maplecroft database, reports from recognized sources, (international organizations, non-governmental organizations as well as support from our human rights consultant – twentyfifty). We have analyzed these alongside human rights risks related to the rest of the industry; conflict and gender have also been considered.
Main risks identified are the following:
The oil and gas supply chain is complex, multifaceted and touches many walks of life, resulting in a diversity of potentially affected stakeholders. For Gunvor, contracted workers are particularly exposed to such risks, including but not limited to seafarers.
2023 Gunvor group risk mapping
A 2022 child labor risk mapping exercise identified specific risks in one country, Colombia, and in one particular supply chain, Palm Oil Mill Effluent. More details on the risk assessment can be found in our 2022 Sustainability Report. For more information on how we are handling child labor risks in Colombia, please refer to the dedicated case study in the “Taking action: mitigate, cease and remedy” section.
Taking action: Mitigate, cease and remedy
Implementing human right due diligence in trading activities
Gunvor has over 9000 counterparties. Being a trader is being an intermediary between upstream (extractive companies, smelters, their affiliates or traders) and the downstream part, which can be a trader, a smelter and, in rare cases, final consumers.
We monitor adverse impact on human rights through daily media checks that are automized. Any issue related to human rights is escalated to the Ethics and Sustainability Department.
In 2023, we have committed to assess five strategic suppliers by the end of 2025, with the aim of developing a systematic process to rate our counterparties’ human rights due diligence processes. Last year, we have identified the suppliers, developed a profile for each of them (composed of human rights risks and based on publicly available data on their mitigation strategies) and designed specific questionnaires aimed at understanding how they concretely implement their commitments on human rights due diligence. These questionnaires are a basis for engagement, that will take place in 2024 and 2025.
Shipping and human rights
Seafarers have been highlighted as particularly vulnerable population, especially since Covid, and specific attention is required to preserve their rights.
Our shipping activities are divided in three main types:
We have no technical management activities, and in each of these situations, our contractual/legal obligations differ as well as our visibility on risks related to seafarers’ rights.
In bareboat chartering, the technical manager we contract will manage the crew. In this case, we have significant leverage to select a technical manager that takes seafarers rights into account.
In shareholding, while this is not directly one of our prerogatives, we can easily interact and assess our partner who is in charge of the technical management of the vessel. We have done that in 2023 as part of our KPI to assess joint ventures. During these assessments, we review practices of our partner, provide recommendations and share the Seafarers’ Code of Conduct (developed by SUISSENEGOCE, the Swiss Commodity Trading Association / the Institute for Human Rights and Business (IHRB)).
Our main shipping activity lies with time-chartering, where we hire a vessel for a length of time. The shipowner has the responsibility to handle the technical management (sometimes, it is a branch of their company, sometimes, they contract a technical manager). Structure of contracts render the visibility of labor practice of technical managers difficult. The existing legal framework (Maritime Labour Convention with inspections) and information available through the safety ratings of vessels cannot suffice to cover all risks. We are therefore looking into time pressure implied by contracts, and especially short time to load/unload the cargo, leading to risk of peaks in activities for crews. This is however an industry issue, which requires a common approach from all actors to ensure a level playing field.
