Message From The Chairman

Paul Fisher, LBMA Chairman

It is a great pleasure to introduce LBMA’s first Responsible Sourcing Annual Report. Transparency and public disclosure are a vital part of driving a continuous improvement in standards. LBMA looks to lead by example by committing not only to enhanced annual reporting on our Responsible Sourcing Programme, but also working to provide greater transparency on incidents as they occur during the year. While we have produced an Annual Review of LBMA’s overall work programme since 2017, this is the first year we are providing a dedicated report on Responsible Sourcing. This is also the first occasion on which we are publishing Country of Origin numbers for all the gold and silver being refined by our Good Delivery List refiners. This enhanced reporting is intended to give all stakeholders, particularly those outside the industry, further clarity on and confidence in the Responsible Sourcing Programme. It should also enhance the ability to ask questions, understand the challenges we face and contribute to the ongoing improvements in standards.

A strategic expansion in the Responsible Sourcing Programme took place in 2019, when we included Environmental, Social and Governance (ESG) issues. As well as my role as Non-Executive Chairman for LBMA, I am also a Fellow at the Cambridge Institute for Sustainability Leadership. As an economist and a former regulator, I continue to work personally to raise awareness of the economic risks and opportunities that climate change poses to the world’s financial system. I was therefore delighted to see LBMA’s Responsible Sourcing Programme expanding ESG issues. A priority for the future is how we can better articulate what Responsible ESG looks like for the precious metals industry and how LBMA can best use its unique leverage to drive change. Other priorities include enhanced refiner reporting, further auditor training and support for the artisanal mining sector so that, as much as possible, it might become part of the ‘formal’ sector.

There are several refineries around the world, but only those that are accredited by LBMA are within scope of the Programme. Whilst the industry has made substantial progress on Responsible Sourcing since the LBMA Programme was introduced in 2012, there is still a lot of work to be done as a global community. I welcome all readers to review and give feedback on the work described in this report as well as on our strategic priorities for the future.

Paul Fisher
LBMA Chairman