LBMA Responsible Silver Guidance V2
About LBMA: The Independent Authority for Precious Metals
LBMA is the pre-eminent standard-setting body for the global wholesale market for precious metals.
Our mission is to ensure the highest levels of leadership, integrity and transparency for the global precious metals industry by setting standards and developing market services.
LBMA plays a key role on behalf of the global precious metals market to ensure business integrity, by advancing standards, acting as a voice and champion for the market, and developing market solutions.
Commitment to Responsible Sourcing
LBMA’s Responsible Sourcing Programme (the Programme) protects the integrity of the global supply chain for the wholesale precious metals markets. It was set up to consolidate, strengthen and formalise the existing standards of the LBMA Good Delivery Refiners’ (Refiners) due diligence practices. LBMA was actively involved in drafting the OECD Due Diligence Guidance1 and its Gold Supplement and continues to support the OECD’s work in supply chain due diligence and related projects.
Vital to the credibility of the LBMA Programme is its broad scope, which includes measures to combat money laundering, terrorist financing and human rights abuses globally. In addition, the Programme has also been developed to recognise the increasing importance of strong Environmental, Social and Governance (ESG) responsibilities.
Responsible Sourcing Programme Overview
All LBMA Good Delivery List (GDL) Gold and Silver Refiners (Refiners) are required to implement LBMA’s Responsible Sourcing Guidance (the Guidance), which comprises the Responsible Gold Guidance (RGG) and Responsible Silver Guidance (RSG), and obtain annual independent assurance on their publicly available compliance reporting. Failure to appropriately adhere to the Guidance may result in a Refiner being removed from the GDL, following LBMA’s robust Incident Review Process (IRP).
Figure 1: Three levels of control
In addition to the Guidance, LBMA regularly produces supporting toolkits and training materials for both Refiners and approved Assurance Providers to enhance the quality and consistency of the Programme application. Refiners should use the Refiners Toolkit (available on www.lbma.org.uk) to implement the requirements of this Guidance. Refiners will be asked to justify any deviations from the scope of the Toolkit (on a comply or explain basis).
Figure 2: The Responsible Sourcing Programme