European ETF provider Tabula Investment Management Limited has launched an ESG-focused physical gold ETC, the first exchange-traded physical gold product to offer “full traceability of gold bars from mine to vault using a small number of named mines adhering to ESG standards”.
According to the providers, the offering, the SMO Physical Gold ETC, is the only physical gold ETC where each ounce comes from responsibly selected mines with high standards, they added. Each mine is independently audited for its positive impact on local communities. The gold is not of Russian origin, recycled from unknown sources, and no mercury is used in extraction.
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“Gold production is highly fragmented with multiple countries, companies and mines producing the precious metal,” said Tabula CEO Michael John Lytle. “However, with only 4% of gold being traceable there are serious ESG risks in the gold supply chain from potential human rights abuses, environmental degradation, possible financing of conflict and terrorism, money laundering and sanctions evasion. Some of the world’s largest major gold producers fail basic ESG screens, and existing standards in the gold industry are not sufficient.”
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Single Mine Origin Limited, established in 2017, vets and monitors mining companies and refiners, ensuring a transparent and trusted standard for responsibly sourced gold.
SMO co-founder Charlie Betts added: “The only way to properly assess the social and environmental impacts of gold is to have full traceability across the supply chain. The launch of the SMO Physical Gold ETC addresses the shortcomings of many existing gold investment options by only sourcing gold from mines adhering to international best practices and openly sharing their ESG data.”
Launched in partnership with leading global gold custodian HSBC, the product is listed on the London Stock Exchange and has a total expense ratio of 0.29%.
