A new exchange-traded commodity (ETF) fund focused on gold produced solely from mines with the highest ESG ratings has been launched in London.
SMO Physical Gold ETC (LSE:BARS) tracks gold bars from mine to vault, only using mines that have been independently audited and accredited with the highest responsibility standard to provide social, environmental and cultural support to local communities
No gold is of Russian origin, said the statement, no gold is “recycled” gold of unknown provenance and no mercury is used in the extraction of the gold
“Gold production is highly fragmented with multiple countries, companies and mines producing the precious metal. Quality control has historically focused on ensuring purity of the metal in the bars,” says Tabula chief executive Michael John Lytle.
“However, with only 4% of gold being traceable there are serious ESG risks in the gold supply chain from potential human rights abuses, environmental degradation, possible financing of conflict and terrorism, money laundering and sanctions evasion.
“Some of the world’s largest major gold producers fail basic ESG screens, and existing standards in the gold industry are not sufficient.”
SMO co-founder Charlie Betts added, “The only way to properly assess the social and environmental impacts of gold is to have full traceability across the supply chain. Proper accountability is not possible without this degree of transparency.
“The launch of the SMO Physical Gold ETC addresses the shortcomings of many existing gold investment options, by only sourcing gold from mines adhering to international best practice and openly sharing their ESG data.”
BARS lists on the London Stock Exchange today with a total charges of 0.29% and HSBC as global gold custodian.