Koninklijke Vopak NV (Vopak), based in the Netherlands, is engaged in the storage and handling of oil products, liquid chemicals, gases, biofuels and vegetable oils. The company is organized into four regional divisions and a separate global business unit for managing and developing liquefied natural gas (LNG) terminals and projects. The company also offers services to support the logistics chain of chemical and oil industries, including tanker shipping and warehousing.
Vopak continually considers the risks and opportunities presented by climate change and has fully integrated sustainability into its corporate strategy. With respect to the environment, the company’s business model boasts very low carbon emissions intensity, and utilizes ISO 50001 (energy management certification) standards to further reduce its impacts. In addition, Vopak preserves local ecological systems by conducting biodiversity assessments and including soil and groundwater management plans within relevant standards. The company also demonstrates a concerted commitment to its health and safety practices, providing requirements for its employees, contractors and service providers. Vopak recently released an online health and safety training module for its employees, and compensates them, in part, according to company performance on key metrics. The company also utilizes the most stringent regulatory requirements, implements the company’s internal Terminal Health Assessments, and proactively monitors and inspects its tanks and pipelines to maintain asset integrity and ensure workplace safety. All of these programs have contributed to Vopak’s strong performance on key metrics such as Lost Time Injury Rate and will continue to do so as the company works toward its 2016 targets.
Vopak’s recent relapse in spill prevention demonstrates a need for more robust policies and process safety measures. By its own admission, the company also notes that it lacks disclosure in a few specific areas such as supply chain management and human capital development, per the findings of The Dutch Ministry of Economic Affairs’ Transparency Benchmark.
Country: The Netherlands
To the best of our knowledge the above information is accurate and was obtained from sources we believe to be reliable. Neither the information presented above nor any opinion expressed shall be construed as an offer to sell or a solicitation to buy the security. The views expressed are those of portfolio management as of 12/31/16 and may not reflect current opinions or subsequent events.