To achieve long-term success and controlled growth, we rely on a healthy mix of risk between the operating units, without neglecting ecological and social aspects.
By publishing economic indicators and other measures in accordance with GRI requirements in our annual Mabanaft Sustainability Report, we present a comprehensive picture of our contribution to the sustainability of a larger economic system. We pay taxes, create jobs, and invest in the local infrastructure in Hamburg and many other places around the world.
One of the greatest challenges as we pursue our strategy of controlled, long-term growth is to limit the manifold financial, operational and HSSE risks. That is why we work based on a permanent and thorough risk management scheme that individually rates all risks and defines tailor-made mandates, tasks, and responsibilities. To further ensure a healthy mix of risk, all risks – including social and environmental ones – are evaluated in the context of the entire group of companies. We take a decentralized approach whereby risks are broken out to the individual companies and responsibility is assigned at operating unit level. The principal risks that may affect future business performance include:
Another international financial crisis flare-up and/or sustained economic downturn
Political conflict in oil-producing countries and the resultant tensions on the oil markets
Rising prices for natural resources and purchased energy
Environmental and natural disasters as well as effects of the climate change
Higher risks in countries we are active in
Global pandemic, such as the global outbreak of COVID-19
For Mabanaft, the relevant trading risks are those caused by the high level of volatility in commodity prices, currency exchange rates, and interest rates. Trading risks are hedged by the systematic use of financial instruments such as derivatives and forward transactions. Mabanaft protects itself against bad debt through credit insurance, banking securities, and the settlement of commodity futures transactions via segregated brokerage accounts. Our controlling ensures that the rules laid down are adhered to.
Supplier & customer relations
The diversity of our company is reflected in the broad spectrum of our suppliers, ranging from vendors of technical equipment for our operational sites to office equipment suppliers. We treat our suppliers with respect, maintain an honest relationship with everyone involved in the business processes, and strive to establish a long-term cooperative partnership. For us, this means not only acting responsibly on our own premises, but along the entire supply chain.
At our sites we also place great importance on safe working procedures for employees from sub-contractors.
Since 2020, we have also been using a new third-party management tool for the compliance assessment process in the Group. It covers the four main risk categories: fraud/corruption, sanctions/embargoes, money laundering, and sustainability management/ human rights. This ensures greater transparency and puts our values – respect, accountability, integrity, responsibility – into practice.