Gold’s unique value and recyclability have made it one of the most enduringly sustainable materials. Over the past decade, the demand for recycled gold - or “green gold” - has soared, driven by both market premiums (or "greeniums") and a growing consumer preference for environmentally conscious products.
High gold prices in 2023 and 2024 have seen record growth in recycled gold. In 2023, global recycling rose by 9% to 1,239t, its highest since 2020. This year, there is an expected additional 5% rise in recycled gold, to the highest levels since 2012 (Metals Focus, 2024). However, this surge in demand has also brought much-needed scrutiny and calls for stricter definitions around what qualifies as recycled gold.
One such example is the transportation of 400oz Loco London bars to Switzerland for reclassification as “recycled gold.” Such practices inadvertently increase the industry’s carbon footprint, undermining the very essence of green gold. The ongoing debates surrounding the ISO/CD 21261-3 standard have reached at least one consensus: investment bars should not qualify as feedstock for recycled gold products. More broadly, defining “green gold” merely as “recycled” gold is insufficient to create the transformative change the industry needs and wants.
A Roundtable on Green Gold
At the 2024 Global Precious Metals Conference, I had the privilege of hosting a roundtable discussion with industry and sustainability experts. Together, we examined ways to advance this critical topic. Below, I summarise key agreements and actionable next steps from the discussion:
1. Learn from External Sustainability Frameworks
- Engage with interested investor groups such as UN’s Principles for Responsible Investment (PRI) network for guidance and collaboration.
- Advocate for the inclusion of precious metals in the EU Taxonomy, ensuring alignment with broader sustainability frameworks.
- Study financial instruments like Social Bonds, ESG frameworks and Climate Disclosures used by some central banks to identify transferable practices.
2. Focusing on Transition-Aligned Processes, Not Easy Labels
Defining sustainable practices requires moving beyond simple product claims to embrace comprehensive process-based transitions. This includes:
- Green Mining: Build on the World Gold Council's Responsible Gold Mining Principles (RGMPs).
- Green Refining, Vaulting, and Transport: Develop frameworks for environmentally aligned practices across the value chain.
These efforts should culminate in:
- Establishing clear transition-aligned carbon ratings and climate baselines.
- Partnering with the Gold Industry Responsibility and Sustainability Principles (GIRSP) Group to standardise and implement these green processes.
3. End the Boycott on Responsibly Sourced ASM Gold
Artisanal and small-scale mining (ASM) gold is, by nature, a low-carbon option. Typically mined by hand, responsibly sourced ASM gold has the potential to play a significant role in the green transition. The industry must prioritize ending the silent boycott on ASM gold while integrating its sourcing into broader sustainability strategies. We welcome the World Gold Council’s recent report on ASM gold shedding light on these challenges and calling for global action.
Green to Go: Key Takeaways
Recycled gold is an appealing concept for consumers - it’s straightforward to understand and easy to market. But recycled gold alone will not achieve the industry’s broader sustainability ambitions and shouldn’t be the only feedstock for “green gold”. The Bundesbank's 2024 Climate Related Disclosures draws attention to the smaller “annualised” carbon footprint of gold stocks which are held over long periods as these are not creating new carbon through gold mining or refining. In its report Bundesbank acknowledges that there is insufficient data on historical gold production, so it has created a “hypothetical” carbon footprint calculated on today’s global gold production, which reduces over the years it is held (see extract below).
"AS AT THE REPORTING DATE OF 31 DECEMBER 2023, THE BUNDESBANK'S GOLD HOLDINGS AMOUNTED TO 3,353 TONNES. FOR THIS AMOUNT OF GOLD, THE GHG FOOTPRINT COMPUTED ACCORDING TO THE HYPOTHETICAL APPROACH DESCRIBED ABOVE WOULD AMOUNT TO BETWEEN 52.8 AND 90.8mn tCO2e. EXPRESSED RELATIVE TO THE MARKET VALUE OF THE GOLD HOLDINGS AS AT 31 DECEMBER 2023 (€201.3bn), THIS WOULD EQUATE TO A CARBON FOOTPRINT OF BETWEEN 262 AND 451 tCO2e/€mn OF INVESTMENT."
The Bundesbank report is a good example of central bank disclosures which could be studied and if appropriate adopted by other central banks. The report also draws attention to the carbon footprint of new gold production as well as the social challenges. Current data shows that approximately 80% of the carbon footprint in the gold sector is generated due to large scale mining. Instead of competing over recycled supply for greeniums, we should use market forces to incentivize significant carbon reductions in mining.
Transparency around origin, carbon ratings, and environmental impact is essential for meaningful progress. To define what “green gold” truly looks like, we need to align on these factors:
- Support for ASM gold as a low-carbon source.
- Robust carbon measurement and transparency across processes.
- Industry-wide collaboration on sustainability benchmarks and definitions.
The conversation on defining green gold is far from over, and I encourage feedback from those involved in shaping carbon ratings, sustainable practices, and meaningful industry transitions. Together, we can drive real change for gold and beyond.
By Ruth Crowell (Chief Executive, LBMA)
Ruth Crowell
Chief Executive
Read biography
Ruth Crowell
Chief Executive
Ruth was appointed Chief Executive of the LBMA in January 2014. She is responsible for the success and strategic development of the LBMA, in partnership with the Chairman and the Board. She is also responsible for maintaining accountability to and the quality of, the Association's Membership and Good Delivery Refiners as well as representing the interests of the Association in relation to regulators, investors, media and international precious metals markets.
Before being appointed Chief Executive, she spent seven years working in the Association, initially as Commercial Director and then as Deputy Chief Executive, where she acted as the main lead on Governmental Affairs. She was also responsible for the Association's work on supply chain due diligence, with particular regard to the creation and implementation of the LBMA’s Responsible Gold Guidance. She has represented the Association at industry, governmental and multi-stakeholder regulatory forums. She continues to serve as Vice Chair of the OECD Multi-Stakeholder Governance Group for Responsible Minerals. As Commercial Director, she oversaw the development of the LBMA Conference, the LBMA's quarterly publication the Alchemist and the LBMA website.
Prior to joining the LBMA, she worked in bank finance and US corporate law at the law firms of White & Case and Norton Rose, and also acted as a monitor at the UN Commission on Human Rights in Geneva. She has an MSc in History of International Relations from the London School of Economics and a degree in English Literature from Kenyon College in Ohio.