The launch of the World Gold Council's Conflict-Free Gold Standard comes at a time when mineral extraction is under more scrutiny than ever. Recent guidance on governance and standards from the Organisation for Economic Cooperation and Development (OECD) and rulings for the disclosure of the use of conflict minerals from the Securities and Exchange Commission (SEC) has put gold producers under mounting pressure.
The recently finalized Conflict-Free Gold Standard is designed to help boards decide on their approach to compliance. It provides a platform for principles based self-regulation including independent, third party assurance on implementation.
To help you understand how your approach to implementing the Conflict-Free Gold Standard aligns with the OECD Due Diligence Guidance we have written a report entitled Golden Opportunity.
In the report we evaluate the World Gold Council's approach in the context of its objective to develop an industry-led standard to increase customer and investors confidence in buying gold, and in doing so, to 'operationalise' the Gold Supplement. After setting the context on the role of standards in shaping governance, we set out comments on the design of the Conflict-Free Gold Standard compared to the Gold Supplement, how they differ and specific areas where, in our view, the Conflict-Free Gold Standard goes further than the Gold Supplement, and vice versa.
A summary for implementing companies: