January 30, 2024

Responsible Sourcing Newsletter: January 2024

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LBMA Launches Inaugural Sourcing Advisory

Earlier this month, LBMA issued our first Sourcing Advisory.

When developing the Sourcing Advisory, a question we found ourselves asking was whether it could be perceived as both a prescriptive and definitive guidance on the vulnerabilities and concerns raised in the highlighted countries.

The simple answer is that it shouldn't be, and here's why...

Both the OECD Due Diligence Framework and the Responsible Gold Guidance make it clear that the onus for due diligence falls squarely on Refiners, and that such checks should be commensurate with the size and complexity of their respective supply chains. It is important to recognise that the Sourcing Advisory does not mean that LBMA only had eyes on - and concerns about - the issues raised in the document, to the exclusion of others.

The Sourcing Advisory’s primary goal is to raise awareness among Refiners and Approved Service Providers to ad hoc sourcing threats and vulnerabilities. By sharing market intelligence, raising awareness of supply chain risks, and supporting proactive due diligence monitoring and risk mitigation, the Sourcing Advisory is expected to contribute to the overall strength of the Responsible Sourcing Programme.

The first issue focuses on Brazil, the Democratic Republic of Congo, Sudan, the United Arab Emirates, and Zimbabwe. Going forward the advisories will become a semi-regular communication product from LBMA, as required.

Let us know what you think!

Ask Responsible Sourcing

Beginning in February, we are introducing an additional component to our monthly newsletter: the opportunity for readers to pose whatever burning questions they may have about all facets of responsible sourcing.

Responsible Sourcing-related questions can be submitted using this form or scanning the QR code. Questions will be published (on an anonymised basis) with answers appearing in the February Newsletter.

There are no wrong questions but please note this newsletter is published the last Thursday of each month, so send your questions well in advance to ensure there is enough time to give them the appropriate consideration.

We look forward to hearing from you.

Sustainability & Responsible Sourcing Summit 2024: ASM and Supply Chain Climate Plans

Registration is now open for the Sustainability & Responsible Sourcing Summit 2024, to be held at Hilton London Tower Bridge from Wednesday, 20 to Friday, 22 March 2024.

This event, hosted by LBMA and World Gold Council, is an opportunity for industry players and stakeholders across the precious metals value chain to explore the role of responsible sourcing beyond the lens of ethical sourcing, with discussions also covering the rapidly developing sustainability agenda.

The agenda will explore collaboration and convergence of climate plans and actions in the gold supply chain. There will be discussion around structural change in the ASM sector, in particular a progress update on LBMA’s efforts to improve ESG standards and sourcing practices in this sector. Participants will also have the opportunity to hear about efforts by industry members to adapt to the evolving sustainability landscape.

The agenda includes confirmed sessions on:

Collaboration and Convergence on Gold Supply Chain Climate Plans and Actions;
Structural Change in the ASM Sector;
Adapting to the Evolving Sustainability Landscapes.

More thought-provoking topics, not to mention expert speakers, are still to be announced, so don’t miss out on your spot at the Sustainability & Responsible Sourcing Summit.

Alan Martin
Head of Responsible Sourcing, LBMA