News & Insights

The ESG credentials of gold

Over recent years, investors have increasingly looked to integrate environmental, social and governance (ESG) considerations as part of their investment process. Whether they’re investing in stocks, bonds or precious metals, there is no doubt that ESG is at the forefront of many investors’ minds.

With many choosing gold as an effective way to diversify their portfolio, we feel there has never been a better time to discuss what the gold industry and Ravenscroft is doing to meet these clients’ needs with regards to ESG.

A question we're often asked during conversations with investors is how can they be sure the gold they buy has been responsibly sourced?

Although not on the front line of the mining and refining stages of the gold production process, Ravenscroft deals only in investment gold bullion from globally renowned refineries, all of whom are members of the London Bullion Market Association (LBMA). HM Revenue & Customs defines investment grade bullion as gold, either in the form of a bar or wafer, that has a purity of 0.995 or higher in any of the commonly accepted weights in the bullion markets.

Our investors can be certain that the gold they purchase and store with us comes from mines and refineries that agree to World Gold Council's Responsible Gold Mining Principles, which were developed to address all the material ESG risks associated with gold mining, and the Responsible Gold Guidance, which is followed by all LBMA accredited refiners to ensure that they have appropriate responsible sourcing procedures in place.

We have also had a relationship with Swiss refiners Metalor for over 10 years. Metalor is an accredited member of the LBMA, and their commitment to ESG, along with their innovation, has led them to create the Metalor Ecosystem, which gives owners the ability to track the origins of the gold in a specific bar.

Of course, there are many other factors around the gold industry and ESG that investors may wish to consider, such as old versus new gold or extraction methods. Two excellent resources for more information are The World Gold Council and the LBMA websites, where you can find out in more detail the work being done to excel the industry in ESG terms.