Insight
Our commitment towards responsible gold
13 April 2022
Our commitment towards responsible gold
LBMA's Responsible Gold Guidance
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.
Invesco Physical Gold ETC
Since we can only be certain that gold minted from 2012 onward has been sourced in compliance with the LBMA’s Responsible Gold Guidance, we have instructed our custodian, J.P. Morgan Chase Bank, to minimise the Invesco Physical Gold ETC’s exposure to gold minted prior to this date. As a result, since July 2020, 100% of the gold bars held in the segregated account of the Invesco Physical Gold ETC are minted since 2012.
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Investment risks
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For complete information on risks, refer to the legal documents.
The value of investments, and any income from them, will fluctuate. This may partly be the result of changes in exchange rates. Investors may not get back the full amount invested.
If the issuer cannot pay the specified return, the precious metal will be used to repay investors. Investors will have no claim on the other assets of the Issuer.
Instruments providing exposure to commodities are generally considered to be high risk which means there is a greater risk of large fluctuations in the value of the instrument.
Footnotes
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1 London Bullion Market Association (“LBMA”) is the primary standard-setting body for the global wholesale market for gold and other precious metals
Important information
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Data as at 31 March 2022, unless otherwise stated. Costs may increase or decrease as result of currency and exchange rate fluctuations. Consult the legal documents for further information on costs. The investment concerns the acquisition of units in a fund and not in a given underlying asset.
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No action has been taken or will be taken in Israel that would permit a public offering of the Fund or distribution of this document to the public in Israel. This Fund has not been approved by the Israel Securities Authority (the ISA). Accordingly, the Fund shall only be sold in Israel to an investor of the type listed in the First Schedule to the Israeli Securities Law, 1968, which has confirmed in writing that it falls within one of the categories listed therein (accompanied by external confirmation where this is required under ISA guidelines), that it is aware of the implications of being considered such an investor and consents thereto, and further that the Fund is being purchased for its own account and not for the purpose of re-sale or distribution. This document may not be reproduced or used for any other purpose, nor be furnished to any other person other than those to whom copies have been sent. Nothing in this document should be considered investment advice or investment marketing as defined in the Regulation of Investment Advice, Investment Marketing and Portfolio Management Law, 1995 (“the Investment Advice Law”). Investors are encouraged to seek competent investment advice from a locally licensed investment advisor prior to making any investment. Neither Invesco Ltd. Nor its subsidiaries are licensed under the Investment Advice Law, nor does it carry the insurance as required of a licensee thereunder. This document does not constitute an offer to sell or solicitation of an offer to buy any securities or fund units other than the fund offered hereby, nor does it constitute an offer to sell to or solicitation of an offer to buy from any person or persons in any state or other jurisdiction in which such offer or solicitation would be unlawful, or in which the person making such offer or solicitation is not qualified to do so, or to a person or persons to whom it is unlawful to make such offer or solicitation.
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