In recent times, the commodity markets have been affected by unprecedented events ranging from political unrest, supply chain disruption to recession fears, which have caused major price shocks and dramatic fluctuations in a commodity trader’s financial performance. The complexity of commodity markets make risk an especially critical factor of business performance than ever before. Commodity markets have also become more complex with new participants entering to profit from this volatility and regulators implementing changes to the ways in which these markets are controlled.
The complexity is supplemented by increasing scrutiny of both regulators and market participants on the move to a low-carbon economy. On top of managing volatility of commodity prices, commodity traders are now faced with a broader question on the adoption of an appropriate sustainability strategy and sustainability reporting requirements to their stakeholders.
A robust control environment, together with comprehensive trading systems and reporting solutions are crucial in gaining insight over the company’s performance and potential opportunities. Timely and accurate risk reporting is key to facilitate effective strategic and operational decisions by commodity traders.
Together, we can support you in your commodity trading and risk management journey.
It is imperative for the success of each company to recognise and manage the evolving risks and market volatility effectively. However, there is no “one size fits all” approach as companies vary significantly in their objectives and rationales for managing such risks.
Our advisors are able to work with you to understand your overall strategy and business model to provide solutions which are practical and sustainable for your business.
Select the tabs below to understand how PwC helps organisations reimagine your trading and risk management process:
Capitalising on our subject matter expertise, we offer end-to-end solutions that cover gap analysis, implementation and integration of climate risk and accounting considerations in reporting through the following:
Learn more about our accounting and reporting advisory offerings
Our global practice comprises of more than 200 dedicated specialists with a wide range of commodity trading and risk management experience. We work with our network of specialists to serve our clients across the world, bringing global expertise whilst providing local partnership on the following areas.
With our extensive commodity market and trading technology experience, through working with leading commodity risk management and trading companies and C/ETRM system vendors, we can help with your business ideas from strategy development and operating model design through to successful implementation of processes and technology.
Environmental, social and governance (ESG) initiatives and commitments are fast becoming an important lens through which threats or opportunities for long term value creation should be considered.
Helping CFOs, finance and treasury teams balance risk and opportunity in a challenging and evolving environment
This market growth is underpinned by the alignment of net zero and ESG (environmental, social and governance) factors impacting corporate fundraising, as the global economy seeks a rapid pathway to decarbonisation. However, there are risks for traders to manage, such as greater carbon regulatory intervention and...
