Investors buying equities are increasingly concerned about ESG, taking into account risks associated with a company due to what it makes. But gold is not a company and is not covered by conventional ESG ratings. So how can investors determine if the gold they invest in is ESG-friendly?
Increasingly, investors in gold are taking into account how “responsible sourcing” of the gold in their portfolios. This focuses on the main ESG risks in the gold supply chain such as how the gold was extracted, who profited, the treatment of miners and supply chain labourers and whether there is a risk that the gold has been used for money laundering, terrorist financing or supporting war.
HANetf is partnered with Britain’s oldest company, The Royal Mint, to provide investors access to create The Royal Mint Responsibly Sourced Physical Gold ETC (RMAU). This ETC is backed exclusively by post-2019 London Bullion Market Association’s Responsible Gold Sourcing Programme. The gold backing the ETC is also partially recycled.
• Steve Jones, Business Development Manager at The Royal Mint
• Varsha Peiris, Head of Good Delivery at LBMA
• Tom Bailey, Head of Research at HANetf