Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
Swiss gold trading house and refiner MKS PAMP announced Wednesday its partnership with UBS as the sourcing partner of its new ‘Carbon Compensated Gold Exchange Traded Fund’ (ETF).
The ETF is the first of its kind, backed by carbon-neutral gold bars that are supplied by MKS PAMP and certified by the global climate consultancy, the Carbon Trust.
Through its carbon-neutral gold bars supplied to UBS for its new ETF, climate risk-oriented clients can invest in certified gold that meets strict environmental criteria and mitigate the carbon footprint of their portfolios, the company said.
“ETF clients can expect the gold bars’ carbon emissions to be measured and neutralized, and a robust carbon management plan is in place to ensure continuous reduction in emissions,” MKS PAMP’s head of ESG Tamara Jomaa-Shakarchi said in a media statement. “This initiative will contribute to advancing environmental consciousness in the gold sector.’’
MKS PAMP has worked with the Carbon Trust to achieve certification of its gold portfolio. The carbon footprint of MKS PAMP carbon-neutral gold is initially measured and certified, and a carbon management plan is developed to achieve yearly emissions reductions. The outstanding, non-abatable emissions are then compensated by carbon offsets contracts, certified by Verified Carbon Standard (Verra), the global leader in voluntary GHG reduction.
To neutralize the outstanding emissions of the UBS ETF gold bars, MKS PAMP purchased carbon offsets from an International Carbon Reduction and Offset Alliance endorsed standard, and supplied by ClearSky, a provider of integrated climate solutions.
The project supports afforestation in Vichada, Colombia, promoting connectivity between ecosystems and creating more than 200 full-time employment opportunities in an area historically affected by poverty. The afforestation activities aim to increase forest cover, sequester carbon, and reduce GHG emissions.
