LBMA Sustainability and Responsible Sourcing Strategy 2024-2026
Focus Area Five
FOCUS AREA FIVE: Enablers that will support a sustainable precious metals industry
Objective: LBMA, through leadership and collaboration, to identify key issues, connected to the UN Sustainable Development Goals, where further action will support the integrity and sustainability of the precious metals value chain.
LBMA recognises this focus area covers matters that are outside of the LBMA’s expertise. LBMA will work alongside subject matter experts in relation to the relevant items.
Given the diverse nature of organisations and their varying degrees of sophistication, reporting requirements need to be applied proportionally. This does not mean that different standards apply, merely that the requirements should be commensurate to the nature of an organisation’s type and level of engagement in the precious metals market, as well as the size and complexity of its activities in the market.
LBMA to engage with other organisations (i.e., other associations) to:
- Help to reduce the gold industry GHG emissions in line with the goals of the Paris Agreement.
- Explore issues around other UN Sustainable Development Goals (SDGs) that impact the industry and develop appropriate mitigation strategies.
- Scope and develop impact assessments in regard to:
- bullion supply chain biodiversity;
- broader human rights (beyond OECD Annex II) to identify the most salient human rights risks associated with the gold market, including gold mining, trading, and recycling; and
- corruption and integrity from mine to refiners and together develop a mitigation strategy based on the results.
- Work towards a consensus on the definition of sub-categories of recycled gold to further aid the GHG framework.
LBMA to lead:
- Develop key indicators and data sources to track LBMA’s contribution to the UN SDGs.
- Provide a suitable roadmap for the reporting of GHG emissions and provide support to members through working group consultations.
- Create a GHG reporting template and framework for refiners to report Scope 1 and 2 emissions in a robust, standardised, and comparable manner, that is interoperable with downstream and upstream reporting/data practices.
- Coordinate GHG reporting template for miners, in coordination with WGC, working towards a plan for Scope 3 emissions data for bullion products.
- Explore feasibility of creating data sets for gold bullion product-level emissions.
- Support and encourage market reporting against the Task Force on Climate-related Financial Disclosures (TCFD) framework and the Taskforce on Nature-related Financial Disclosures (TFND) framework.
- On the basis of impact assessments (as provided above), update RGG and RSG to clarify the most salient progress criteria on gold and silver sourcing related to ESG issues, including and where relevant:
- Corruption and human rights (including labour and health and safety)
- Environmental protection and water stress
- Local development, communities and social responsibility
- Recycled gold
- Identify and develop ESG reporting indicators for refiners to generate comparable data on ESG risk management, to be used by the market – combining existing reporting on due diligence with ESG and GHG reporting more broadly.
- TCFD and TFND promotional strategy.
- GHG Roadmap / net zero roadmap / climate risk assessment and adaptation.
- Revision of RGG and RSG.