Mission Statement

Chimbusco Pan Nation (CPN) is committed to conducting its operations in a responsible and sustainable manner, and to addressing the environmental, social, and governance (ESG) issues that are important to our stakeholders and shareholders. We are committed to our ESG principles and integrate our philosophy in the entire value chain. Our common goal is to achieve carbon net zero before 2050.

ENVIRONMENTAL (E)

CPN recognizes the impact on the environment associated with our bunker fuel operations and associated products, and is committed to reduce the carbon footprint and minimizing our environmental impact, with the following measures:

Measures

Energy-Efficient Operations

Implement energy-efficient practices and technologies across all physical operations, integrating alternative fuels and renewable energy sources where possible.

Energy-Efficient Operations

Low-Carbon Fuel Solutions

Expand and commercialize low-carbon marine products, including ISCC-EU certified biofuels and green methanol, to drive maritime decarbonization.

Low-Carbon Fuel Solutions

Sustainable Resource Use

Promote sustainable materials and products across our global supply chain and operational facilities to minimize overall environmental impact.

Sustainable Resource Use

Stakeholder & Industry Collaboration

Educate clients on carbon reduction, align with local regulators on green milestones, and drive collaborative decarbonization initiatives.

Stakeholder & Industry Collaboration

Social (S)

CPN recognizes the importance of social responsibility, with the following measures:

Measures

Diversity, Equity & Inclusion

Promote diversity and equal opportunity across our global workforce while delivering structured career development and advancement pathways for all employees.

Diversity, Equity & Inclusion

Workplace Health & Safety

Maintain rigorous health and safety standards across all operations while ensuring full compliance with international labor laws and regulations.

Workplace Health & Safety

Community & Social Impact

Engage with local communities and actively support social initiatives that align with our corporate values and sustainability mission.

Community & Social Impact

Governance (G)

CPN recognizes governance being one of the critical factors in driving business growth, and is committed to maintain high standards of corporate governance and transparency to our stakeholders.

Measures

Regulatory Compliance & Ethics

Conduct all operations under the highest ethical standards while maintaining full compliance with applicable laws and regulations across every operating jurisdiction.

Regulatory Compliance & Ethics

Executive Leadership & Oversight

Maintain rigorous operational oversight through an active Board of Directors, senior executive management, and specialized governance committees.

Executive Leadership & Oversight

Risk Management & Internal Controls

Enforce comprehensive internal control systems and enterprise risk management protocols to safeguard corporate integrity and operational resilience.

Risk Management & Internal Controls
IMPLEMENTATION

IMPLEMENTATION

CPN implements its ESG policy through the following actions:

  • Establish an ESG Committee to address the ESG issues and provide leadership on driving solutions. Selected members will be held accountable on actionable items.
  • Define visions and executable initiatives to achieve our ESG goals
  • Communicate our ESG performance to stakeholders and supply chain members.
  • Continuously review and improve our ESG practices to ensure that we are meeting our commitments and addressing emerging issues.
Policy Compliance

Policy Compliance

Compliance with this policy is verified through various methods, including but not limited to, reports from available business tools, internal and external audits, self-assessment, and/or feedback to the policy owner. Non-compliance with this policy, including attempts to circumvent the stated policy/process by bypassing or knowingly manipulating the process, system, or data may result in disciplinary actions. Any exception to this policy must be approved by the ESG Committee.

FAQ

01
In what ways has the trend towards ESG engagement impacted your treasury and finance function and goals?

As a marine fuel supplier, we are committed to conducting our operations in a responsible and sustainable manner and to ensure ESG issues are escalated in a timely manner to our stakeholders and shareholders. From a treasury perspective and finance perspective, the journey will take time as implementing and enforcing such legislation in various jurisdictions (in which we provide bunker services) are progressing but remains at an early stage. As with many initiatives, it will bear higher operating cost for sustainable fuel so this will have an impact on net income for the supply chain.

02
How do you address the ESG-related challenges from being a petro-chemical company, such as the impact on funding? How can you overcome these issues?

We can see already some divergence as more western banks begin to factor in ESG score card when it comes down to obtaining green loans and sustainable finance. In parallel, western financial institutions would expect a roadmap on our carbon neutral effort and how we decarbonize our business as we move into 2050. CPN is fully aware of the challenges in the industry as such, we are formulating a working plan on decarbonization, and we do foresee that the industry will be switching to green bunker fuel in the medium term.

03
How do you ensure there is sufficient understanding and buy-in across the treasury team of corporate ESG objectives?

We have established an ESG committee to address these issues by formulating a policy. With our clients, we continue to educate and update them the local regulations pertaining to sustainable fuel development and our plan is to work with suppliers to provide such feedstock to them in a timely manner. From the social aspect, we truly value diversity in the workplace and we have established forums for junior and minority employees to raise their concerns, if any. We put a lot of emphasis ensuring that our companies are not bound to break any local regulations and it goes without saying that we have a very robust KYC and credit process to ensure the oil and vessels we use are not sanctioned.

04
How has dialogue with banking partners and third-party vendors evolved given the heightened prominence of ESG in corporate strategy? What hurdles have you encountered and how have you overcome them?

We do openly discuss our ESG framework with banks or vendors if we are asked to do it. At the current environment, banks do evaluate as our profitability and shareholder support more, but we understand it is important for us to make the sustainable transition in the medium term for our company to continue and get the support we need from banks and third party vendors. At the end of the day, 2050 is not very far away. One of the hurdles that we have encountered is that after CPN has delivered our first batch of biofuel in August 2023, do we see soaring demand from the customers? The answer is not obvious as biofuel is at least 30% to 40% more expensive than conventional fuel per se so there must be a fine balance for our buyers to make this decision.

05
What can be done within the Commodities finance and treasury community to foster a greater focus on ESG going forward, including addressing emerging anti-ESG sentiment?

Commodities is a traditional industry which still heavily rely on papers and faxes, and this is the comfort zone and how the industry really works. One thing that amazes me is the utilization of blockchain technology to at least giving us the chance to send our Bill of Lading (title of oil) on an approved blockchain platform which is approved by the local regulator. The transaction will be paperless and move faster than Fax network. Finally, global warming is real, and the entire supply chain will need to formulate a corporate plan to incorporate sustainable and renewable fuel in the eco-system.