Carbon Neutral Gold

1 What is Carbon Neutral gold?

A Carbon Neutral certification demonstrates an organisation's commitment to the decarbonisation of its product portfolio, through measuring its product's footprints, adopting a carbon management plan and compensating the remaining impact through the support of environmental projects.

The Carbon Neutral label indicates that the CO₂ emissions generated across the product’s entire value chain have been measured in accordance with the internationally recognised ISO 14067 standard, independently verified, and committed to be reduced year after year. The outstanding emissions are then compensated across the financing of high impact environmental projects called carbon offsets.

MKS PAMP has adopted a carbon management plan to reduce its yearly carbon emissions for the Carbon Neutral gold bars by 2030. This will be achieved through significant engagement with suppliers on our carbon management plans to encourage a reduction in their GHG emissions impact. Through its alignment with the International PAS 2060 Carbon Neutrality Standard, this new portfolio of products represents a tangible step in MKS PAMP’s carbon reduction journey.

3 Carbon emission offsets

Our offsets projects

MKS PAMP offset portfolio consists of three types of credits certified by the global leader in voluntary GHG reduction, Verified Carbon Standard (Verra). Based on its global footprint, MKS PAMP decided to focus on avoidance projects (offsets from activities that reduce emissions by preventing their release into the atmosphere) with a focus on countries where the company operates or sources its products, and in alignment with its corporate values.

To date, MKS PAMP has focused on the following projects, across three continents.

• The Indian Solar Photovoltaic project (Ref: 1786)
• The Ivorian Soubré Hydropower project (Ref: 1522)
• The Brazilian Renewable Energy Project by VTRM (Ref: 1903)

The offset process

Once the Carbon Trust Assurance Team certified the emissions related to the gold bars and the number of carbon offsets required for product neutrality, MKS PAMP proceeded to purchase voluntary offsets that focus on Carbon avoidance projects.

MKS PAMP buys the certificates used to offset the emission for the Carbon Neutral product. MKS PAMP acquires the offsets through two suppliers: ClearSky Ltd. and Pact Capital AG.

Validation of the offsetting

The offsetting purchase is validated by the Carbon Trust Assurance Team that conducts an independent audit in line with the ISO 14067 and PAS 2060 standards. The audit team ensures that the appropriate number of voluntary offsets have been purchased to cancel out the whole amount of carbon emissions.

5 Calculation of the product footprint

Methodology

The Carbon Trust Advisory Team designed the methodology to calculate the carbon footprint of MKS PAMP Carbon Measured products. The carbon  footprint  is  calculated  per  ISO  14067  standard,  which  specifies  requirements  and  guidance  for  verifying  and  validating greenhouse  gas  statements and is internationally recognized.

The 1kg and 12.5kg gold bars, and the 1oz gold Lady Fortuna have been footprinted cradle-to-grave, whilst the gold grain and silver grain has been footprinted cradle-to-gate. This is because the grains are intermediate products which are further processed by other businesses.

Data

MKS PAMP provided the primary and secondary data to the Carbon Trust, which used it to calculate the emissions related to the products. The following emissions per scope were measured and validated:

• Scope 1:  emissions  related  to  manufacturing  processes  such  as  materials  used,  combustion  of  liquid  fuels,  and  self-generated electricity.
• Scope 2: emissions generated from the acquisition and consumption of electricity, heat, steam, or cooling from external sources.
• Scope 3: upstream raw material inputs, inbound transportation, downstream distribution, and end-of-life processing.

Validation

Following  the  footprinting  process,  a  separate  unit  within  the  Carbon  Trust  (Carbon  Trust  Assurance  Team)  conducted  an  independent audit of the footprint of the gold bars to certify it to the appropriate standard (GHG Protocol Product Standard and ISO 14067) and ensure impartiality of the assurance decision.