Transitioning away from Russian LPG
On 24th February, 2022, we all woke up to a new reality as the Russian aggression on Ukraine began. From the first day of the invasion, GASPOL united with Ukrainians, but grew concerned about the impact…
Applying a risk-based approach
SHV Energy has taken various steps to properly manage Ethics & Compliance issues using a risk-based approach. The operations across our network have common characteristics, but there are still significant differences in the way each of the business units are set up, the processes they employ and therefore the E&C risks faced by each organisation. The annual value chain assessment helps the E&C teams provide a standardised structure to identifying specific risks, whilst at the same time informing the overall risk-based approach across the entire network.
Input was collected from various stakeholders via an initial questionnaire, meetings and information that was already available. The value chains assess business aspects with potential E&C impacts such as products and services provided, market position, cross-border activities, involvement with third parties such as dealers or agents and the numbers of employees. The documents were then validated by relevant management teams as to ensure the business and E&C have a common understanding of the processes.
The set-up of our E&C functions
The set-up of our E&C function is aligned with our belief that it is essential to understand what happens across our organisation and be there to advise the business. Therefore, the E&C function consists of a small team at our group headquarters and Compliance Officers at each of the SHV Energy business units. This ensures a consistent overarching approach which can then be tailored to meet the specific demands of each particular market by local professionals, who are also best placed to advise the local business, implement processes and monitor compliance. This combination of global and local approach also facilitates sharing knowledge and best practices with and between the business units.
The benefits of mapping our value chain
Both in the short and long term, there are clear benefits from undertaking this exercise. It helped clarify the scope of responsibilities between the various business units and identify where there are overlapping duties and areas of risks. It also helped us focus our Third-Party Due Diligence programme to ensure that the most time and resources are aimed at the larger risks as well as the full range of our products, terminals and cross-border activities.
The value chain diagram has also become a much-appreciated tool by other functions in the business, as they are useful during training and onboarding, quality reviews and country visits, as well as to identify potential opportunities or projects.
Putting together the value chain of products and services offered has allowed the Ethics & Compliance team at Calor GB an opportunity to understand the total end-to-end journey our product takes to reach our customers, and the day-to-day challenges faced by the relevant stakeholders.
The BU Compliance Officers at Calor GB, Stephanie Loke and Louise Fawcus, found that the process provided opportunities to engage the relevant business leads about the principles behind the policies implemented and where they could affect the business. It also provided opportunities to develop a more consistent understanding on trade sanction policies and highlighted the importance of knowing where our products originate from and where they could be used.
Joris Blaauw, Senior Compliance Manager and Group Data Protection Officer at SHV Energy, explains the benefits of this collaborative approach to value chain assessment.
“Co-operating together online helped us leverage emerging best practices from the entire SHV Energy group, whilst remaining in tune to local risks, challenges and requirements.”
“Co-operating together online helped us leverage emerging best practices from the entire SHV Energy group, whilst remaining in tune to local risks, challenges and requirements”
Joris Blaauw, Senior Compliance Manager and Group Data Protection Officer at SHV Energy, The Netherlands