Page 26 - Bullion World Issue 1 May 2021

Bullion W orld Issue 01
Bullion World | Issue 01 | May 2021

Why gold should be

considered as an ESG

compliant asset

It is sometimes easy to forget that
gold plays a critically important role in
many aspects of our lives. We rely on it
every day in our phones and laptops, in
medical testing kits such as COVID-19
rapid tests, and wear it as jewellery.
Indeed, gold is a unique metal which
does not corrode or tarnish over time,
meaning it has become intimately linked
with legacy and inheritance in society,
and why in many cultures around the
world, including of course in India, we
give and receive gold as ceremonial gifts.
And because it is a highly-liquid, a long-
term store of value, gold has provided
financial security for individuals and
countries for millenia.

As the world is changing and more focus
from consumers and investors is placed
on ESG and the future of our planet, it is
important to note that gold should indeed
be considered as an ESG compliant
asset.

“ The World Gold Mr Terry Heymann

Council in 2019 World Gold Council
launched the
Responsible Gold Responsible gold miners are committed to responsible mining practices,
keeping the environment and local communities front of mind. To clearly
Mining Principles define expected best practice, the World Gold Council in 2019 launched
(RGMPs), a framework the Responsible Gold Mining Principles (RGMPs), a framework which
which includes 51 includes 51 principles looking at all material environmental, social and
governance (ESG) factors associated with gold mining. This includes
principles looking water management, climate change, gender diversity, anti-bribery and
at all material community engagement, just to name a few. This framework helps
environmental, social consumers, investors, and the downstream gold supply chain have
confidence that the gold they buy has been responsibly produced
and governance (ESG) Companies implementing the RGMPs will have to obtain external
factors associated assurance from a third party, independent assurance provider, with
”
with gold mining. a three-year timeline for full implementation. All World Gold Council

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