- LMEpassport enhanced to include emissions data comparability and disclosures related to non-LME grade metal
- Responsible sourcing agenda advanced by integrating the first artisanal mining (ASM) standard, as well as scrap material attestations into LMEpassport
- LME’s own net-zero commitments set with 2040 target
The London Metal Exchange (LME) is today pleased to announce a number of important advances to its sustainability commitments. Enhancements to the LME’s digital sustainability credentials register, LMEpassport, will enable greater comparability in carbon emissions data, provide increased transparency on brands using scrap material, and broaden disclosure opportunities to non-LME brands. LMEpassport’s first artisanal mining (ASM) standard has also been integrated into the platform, supporting the formalisation of ASM in the supply chains of LME brands. Additionally, the LME today sets out its own net-zero commitments in support of global efforts to meet the Paris Agreement goals.
Matthew Chamberlain, LME Chief Executive, commented: “We are delighted that momentum has continued to build in LMEpassport usage since its launch last year. With disclosures now in their hundreds, we are starting to see our commitment to transparency and comparability in sustainability data develop in a meaningful way. It is especially encouraging to see the results of the first responsible sourcing reporting, which is testament to the huge effort made by our producer-community to introduce enhanced compliance and accountability processes to metal supply chains. We look forward to continuing to work with all our stakeholders to build a better, more sustainable market.”
Georgina Hallett, LME Chief Sustainability Officer, commented: “We are fully committed to playing our part in the global efforts to deliver on the Paris Agreement goals and today we are delighted to be setting a hard target for LME net-zero of 2040. In the coming months and years we will do all we can to bring that date forward as the transition to a low carbon economy becomes increasingly urgent.”LMEpassport
With 210 brands (of 443 LME-listed brands) and 350 disclosures currently listed, LMEpassport is fast expanding as new LME-approved certifications and standards become available. Along with a new easy-to-navigate interface and search functionality, LMEpassport has now incorporated a single approved emissions methodology for nickel (provided by the Nickel Institute) and zinc (provided by the International Zinc Association), as well as for aluminium (provided by the International Aluminium Institute). This provides greater emissions data transparency across each of these metals, enhancing users’ ability to compare data in a meaningful way.
Additionally, producers are now able to list disclosures for their non-LME registered brands alongside their LME brands, with Freeport-McMoRan Inc. already taking advantage of this new service. This further expands the use case of LMEpassport, enabling producers to showcase the sustainability credentials of a broader product suite.Responsible sourcing
The LME’s first responsible sourcing reporting deadline was in June 2022 and 96% of its brands met this deadline, providing information on their chosen tracks to compliance. Of these, 53% of brands chose alignment-assessed standards to reach compliance (“Track A”), and responses showed that over 80% of the LME’s aluminium alloys brands, and nearly half its lead brands, source from 100% scrap materials, rather than primary inputs. This information is now available to view on LMEpassport, providing greater visibility of the central role recycling plays for many LME-listed brands.
Eliminating human rights abuses and governance issues from metal supply chains, while also adopting a fair and non-discriminatory approach to both ASM and large-scale mining (LSM), is a key element of the LME’s responsible sourcing commitments. The LME is therefore proud to have incorporated into LMEpassport the EGC (Entreprise Générale du Cobalt) Standard, established for the maintenance of safe and strictly controlled ASM zones in the Democratic Republic of the Congo (DRC). Brands using ASM in their supply chains will be able to disclose voluntarily their compliance with this standard. This is an important step in providing support for the formalisation of ASM – upon which an estimated 150 million people worldwide indirectly depend – in the supply chains of LME brands. LME net-zero commitments
The LME is committed to providing the tools and support needed to enable the metals industry to remain at the forefront of the sustainable transition, while also ensuring that its own commitments as a business are consistent with global efforts to meet the Paris Agreement goals. The LME today commits to its own 2040 net-zero target (for scope 1, 2 and 3 emissions), and will use the Science Based Targets initiative (SBTi) – a five-step process enabling companies to demonstrate a GHG emission reduction plan – to formalise its strategy. Having committed to SBTi, the LME is now developing a full emissions reduction target and roadmap, which will be submitted to SBTi for official validation within the next 24 months. Additionally, the LME has stated its support for the Task Force on Climate-related Financial Disclosures (TCFD), which provides a framework to develop consistent climate-based financial risk disclosures.
Notes to editors
- The new LMEpassport interface can be accessed here.
- Information related to the LME responsible sourcing programme can be found here.
- Information on the LME net-zero plans can be accessed here.
- Details on the EGC Standard can be found here.
1The Intergovernmental Forum on Mining, Minerals, Metals and Sustainable Development (IGF) (2022). Retrieved 19 October 2022, from IGF website: https://www.igfmining.org/announcement/asm-through-gender-lens/