LBMA is pleased to announce the publication of Version 9 of the Responsible Gold Guidance (RGG). The RGG is the document that underpins LBMA’s Responsible Sourcing Programme.
The Guidance has been refined following two extensive consultations, and it incorporates feedback received from auditors, NGOs, refiners, the Swiss Association, the World Gold Council, ETFs and LBMA Committees. A Refiners’ Working Group was set up to review feedback and discuss the issues in detail during seven separate three-hour page-turner calls.
Version 9 builds upon Version 8 of the RGG, launched in 2018, which marked a major strategic expansion to include Environmental, Social and Governance (ESG) issues.
“We would like to thank all stakeholders for contributing their ideas and recommendations during the consultations,” said Sakhila Mirza, LBMA Executive Board Director and General Counsel.
“LBMA’s role is to lead and advocate for the continuous improvement of global Responsible Sourcing standards and business practices to ensure integrity across the precious metals supply chains. The RGG forms the backbone of those commitments and reflects our dedication to continuous improvement.”
What are the key changes?
Key changes from Version 8 to Version 9 of the RGG include the following:
- Clarity on due diligence expectations regarding the responsible sourcing of recycled gold
- The elimination of cash transactions except for Artisanal and Small-scale Mining (ASM), where transactions will require approvals (see the full RGG for other exceptions)
- Provision of support for responsible ASM measures to create economic and development opportunities
- Clarity on origin of material, such as an integrated approach to risk assessment and strengthen due diligence processes
- Further detail on ESG risk assessments
- Risk mitigation requirements clarified and aligned with OECD Due Diligence Guidance
- Rotation of auditors every 10 years and annual assurance checks to promote auditor independence and audit quality
- Mandatory conformance with Disclosure Guidance to promote better reporting practices
Refiners will have 12 months to meet this new guidance, which will be applicable from 1 January, 2022.