Sustainable Business magazine - essential reading for sustainability professionals
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Supply Chain Precious metals 3/4 guidance. It has now progressed to the stage where requirements for third-party auditors to verify processes have been published. In addition to these organisations, the World Gold Council has also published a Conflict-Free Gold Standard, which is an industry-led approach to combat the potential misuse of mined gold to fund armed conflict. This open standard has been developed with member companies (gold producers) and in consultation with governments, civil society and supply chain participants. However, the step-change has perhaps been most significant at the other end of the supply chain, where these precious metals are in fact sourced. The mining industry has taken steps toward solidifying responsible practices and, in turn, the consumers of precious metals, ranging from the electronics industry to manufacturers and buyers of the host of products that incorporate electronic circuitry, are basing their own due diligence systems on these initiatives. The Certified Smelter programme, for example, was developed by the Electronics Industry Citizenship Coalition to approve smelters/refineries, which are the key control point of due diligence in the supply chains for precious metals. It enables companies to report reliably on the sourcing of affected raw materials by providing a certified starting point. It does not, however, eliminate negative impacts which can further impair economic development in countries already suffering from violence and corruption. For this, there are schemes such as the Fairtrade and Fairmined Gold Standard which seeks to promote ethicallysourced gold from artisanal and smallscale miners. Currently this represents only a small percentage of the overall market and, due to its nature, is being used in the production of jewellery where the premium can be more easily absorbed. If the growth of other fairtrade commodities is any sign, however, this standard could become a major factor in the future. Legislation is a clear driver and governments across the globe are jumping on board, with many providing industry support to push sustainable and responsible precious metal supply chains, particularly the US Government. The Dodd-Frank Wall Street Reform and