80–90% less commodity price risk — even where no direct hedge exists.
More stable revenues, stronger competitiveness, greater predictability — with IFRS 9 and AFRAC 15 compliant reporting.
Volatile commodity prices hit profitability — with no instrument to hedge them.
Companies with a high share of material costs are under immense pressure from volatile commodity prices — often without suitable derivatives to hedge.
Fluctuations in inventory valuation affect earnings directly. The lower the EBIT, the more strongly commodity price swings impact results and, ultimately, equity.
The effect reaches further: greater uncertainty in project business and budgeting — and no existing risk-management solution to address it.
Every alternative carries its own cost — or its own risk.
Three approaches are common. None resolves the problem cleanly.
Price-adjustment clauses
Not always possible, or tied to factors outside the company’s control — including counterparty risk.
Spot purchasing & higher inventory
Eliminates price-fluctuation risk, but burdens the company with storage, financing, and insurance costs.
Long-term supply contracts
Limited feasibility — and associated counterparty risk.
Proxy Hedging enables autonomous risk limitation — with limited cost.
A dynamic basket of tradable derivatives — built to reflect your specific price-change risk.
Using our proprietary method, we identify a dynamic basket of derivatives that reliably reflects your specific price-change risk — even where no direct hedging instrument exists.
The solution is continuously updated, so your hedging strategy always remains effective.
From your purchase data to a monitored hedge.
Data Transfer
The company provides its purchase data — securely and confidentially.
Risk & Weighting
HedgeGo calculates the risk and the required Proxy Index weighting.
Selection
The asset manager selects contracts by market and maturity.
Review
Company & HedgeGo review — objection within 2h or execution proceeds.
Execution & Monitoring
Broker executes; the margin account shows ongoing performance.
Four parties. One coordinated hedge.
Continuously provides purchase data, deposits margin (≈20% of the risk), and controls the selection — with a 2-hour objection window.
Calculates and monitors the Risk & Proxy Index, and determines the weighting that covers the measured risk.
Selects the specific derivatives and their quantity to reflect the weighting, then instructs the broker.
Executes the contracts on the exchange and reports results in the online account.
Price security, better planning, a stronger position.
Risk reduction
Financial results are expected to show an 80–90% reduction in commodity price-fluctuation risk.
Improved price security
Limited price-risk transfer — including the competitive advantage of offering fixed prices to your own clients.
Transparent reporting
Accounted as a hedging transaction, for clear and comprehensible financial statements.
Easy to implement
Straightforward to put in place — moderate effort, high transparency, limited cost.
Let us analyse your material price risk.
Reach out for a non-binding consultation. We’ll look at your specific exposure together.
Book a non-binding consultation