Introduced in 2012, the LBMA’s¹ Responsible Gold Guidance requires strict adherence to rules around the provenance of gold for its Good Delivery refiners.
It was set up to combat systematic or widespread abuses of human rights, to avoid contributing to conflict, to comply with high standards of anti-money laundering, and to combat terrorist financing practices in the entire gold supply chain.
The Guidance has been regularly updated since its introduction, most recently in 2021 to address corporate governance, environmental and sustainability issues. All refiners wishing to sell into the London Bullion Market must implement and adhere to LMBA’s Responsible Sourcing Programme in order to remain on the LBMA Good Delivery List.
The Guidance is based on internationally recognised frameworks such as OECD Due Diligence Guidance for Responsible Supply Chain of Minerals from Conflict Affected and High Risk Areas, Swiss and US KYC, Anti-Money Laundering and Combating Terrorist Financing regulations. These detailed standards help to ensure companies respect human rights and avoid contributing to conflict. As such, the Guidance crosses over with several UN Global Compact Sustainable Development Goals including no poverty, reduced inequality, peace justice and strong institutions.
Compliance with the Guidance include measures such as:
- Supporting initiatives facilitating responsible supply chains for all forms of mining in areas of conflict or human rights abuse
- Refiners are required to engage on ESG issues with their suppliers and assist them in implementing ESG policies
- LBMA accredited refiners must meet the guidance standards
- Refiners are independently audited on an annual basis and are required to report publicly
- Failure to comply may result in immediate removal from the Good Delivery List.
