Catom Annual Report 2020 EN

Fuel price risks, interest rate risks, derivatives There have been major fluctuations in fuel prices in recent years. Catom follows the market and our business model has proven robust in absorbing these fluctuations. Catom makes very limited use of financial instruments – forward exchange contracts – to hedge against losses on its stocks, which in turn make up a very limited part of its total turnover. As a player in the downstream oil market, Catom is aware of the crucial importance of always being in compliance with legislation and regulations and ensuring safe opera tions. A key foundation for controlling the risks in this area is the company culture. Accordingly, the Executive Board and management focus on an ongoing basis on safety and quality and increasing transpa Other risks, compliance with laws and regulations, safety

rency in terms of the timely identification, assessment and reporting of risks.

The risks in these areas are further mitigated by internal risk management and control systems, which are tailored to the day-to day work environment in which Catom operates, and with considerable support being provided by an extensive system of requirements, procedures and systems in relation to quality assurance, as documen ted in Catom’s HSE quality manual and in accordance with ISO 14001 and VCA* (safety, health and environment) standards. Compliance with these standards is regularly audited by external specialists. In 2015 we conducted an inventory together with an external party to verify that Catom has all the required permits, is in compliance with these permits, and adheres to all legislation and regulations in the area of safety and the environment. To this end, a

40