For 6 decades, commodities trader, Gerald Group has sourced and supplied industrial customers with metals that are poised to play an ever more important role in a decarbonised world. Besides adhering to OECD Due Diligence Guidance, the company is member of industry associations including the International Tin Supply Chain Initiative, the Responsible Minerals Initiative and the Aluminium Stewardship Initiative, monitors technological developments that advance traceability from ‘mine-to-end-use’.
Pursuing higher traceability standards helps create competitive advantage in the marketplace, as downstream users of materials are mandating proof of responsible production, and being able to evidence it is key. For example, this year, the Global Battery Alliance launched the world’s first electric vehicle (EV) ‘Battery Passport’ proof of concept aiming to set a global sustainability standard for EV batteries, including traceability and circularity – a major milestone for battery minerals such as cobalt, manganese and lithium.
Gerald Group has implemented an enhanced new ESG Due Diligence and Clearance Protocol that aims to ensure its trading activities support supply chain transparency and integrity allowing the company to better identify and manage risk. The Group’s 100% screening rate for new and renewing accounts as part of the KYC process, allows it to better understand production and trade practices of counterparties, and to closely monitor and track trade originating from Conflict Affected and High-Risk Areas (CAHRA) on aspects such as human rights. Once ESG screening is complete, suppliers get a clearance status and risk rating, enabling insightful and better business decisions around potential trade and ESG risks.
Traceability in both upstream and downstream supply chains is also equally important. Application of new technologies such as blockchain, combined with multi-stakeholder initiatives are enabling companies to understand end-to-end movement of trade flows for greater transparency and accountability. Collaboration for data sharing and transparency is vital for the success of this process. As global mining activity grows, using best sustainability practices in production is pivotal to maintain healthy economies and societies.
Greater traceability will also help the low-carbon metals market to mature. Possessing an end-to-end view of the value chain will help to certify low-carbon production processes as genuinely low-carbon. Ultimately, many expect both markets to merge into a prime market and a subprime one. In this scenario, enhanced traceability will incentivise the mining and metals industry to greatly reduce carbon emissions and uphold higher ESG standards along the whole value chain – a win-win for all.
