Sustainability and Responsible Sourcing Report 2023
Chapter 8: The Responsible Sourcing EcoSystem and LBMA Partnerships
Building leverage across the value chain and with key actors in the responsible sourcing ecosystem has always been an ongoing focus for LBMA. Although LBMA administers the Good Delivery system, ultimately, the responsibility to ensure gold/silver is ethically sourced is shared across the entire industry and with the authorities in relevant jurisdictions. The LBMA Programme is therefore part of a much wider ecosystem which has four key components: national authorities; downstream and upstream actors; civil society; and the industry programmes.
There has been strong engagement with national authorities this year through the Intentional Bullion Centres work. We continue to improve our understanding of what other jurisdictions are doing to support the responsible sourcing agenda, as well as provide updates on the progress we are making.
Close collaboration and coordination with key industry partners and stakeholders is critical to nurturing trust and making progress toward theshared goal of building more sustainable and responsible business practices and outcomes in the global precious metals market.
In 2022, these partnerships helped LBMA advance many of the activities and objectives covered in this report. In addition to the multi-stakeholder effort witnessed in LBMA’s ASM Task Force, we outline below a few of the more significant collaborations of the last year.
WORLD GOLD COUNCIL (WGC)
The WGC is a co-convener with LBMA on the Gold Bar Initiative (GBI), the Sustainability Declaration, and the biannual Sustainability and Responsible Sourcing Summit. The WGC is also an invaluable partner in our efforts to draft an ASM sourcing framework, and
representatives of WGC participate in the ASM Task Force.
At the 2022 OECD Forum on Responsible Minerals, LBMA and the WGC co-hosted a panel discussion around how to build cooperation and co-existence between large-scale miners and ASM actors operating close to industrial concessions.
LONDON METAL EXCHANGE (LME)
In late 2022, the Responsible Gold Guidance (RGG) was conditionally approved by the LME as a Track A standard under its Policy on Responsible Sourcing of Listed Brands. Effective 1 January 2023, the cross-recognition agreement serves to reduce assurance duplication for GDL Refiners that process both precious and base metals. Participating Refiners must meet the requirements specified in the ‘multi-site assurance and standards equivalence’ section of the RGG.
UNITED NATIONS ENVIRONMENT PROGRAMME (UNEP)
LBMA was pleased to partner with the United Nations Environment Programme (UNEP) and Planet Gold in Guinea and Cote d’Ivoire by providing inkind contributions to their efforts to reduce the use of mercury and support the holistic formalisation of the ASM sector.
ALIGNED ASSURANCE PROGRAMMES
With growing public and regulatory scrutiny of the assurance schemes that validate the supply chains of conflict-affected metals, LBMA joined industry partners to consider ways to improve the training and knowledge base of Assurance Providers. In early 2023, LBMA attended two meetings convened by the OECD and the LME to consider common limitations to assurances and how assurance programmes could collaborate to address them.
As each industry scheme has different supply chain challenges and sourcing requirements, it was agreed that a one-size-fits-all model would not help. An immediate outcome of these meetings was for LBMA to partner with the Responsible Mineral Initiative (RMI) and Copper Mark to plan a joint training in early 2024 for Assurance Providers – many of whom work across the three industry schemes – to build the ‘soft skills’ required to better identify and respond to common sourcing issues.