BONHÔTE (CH) - Swiss Gold Bars ESG

The BONHÔTE (CH) - Swiss Gold Bars ESG fund offers investors the opportunity to invest in physical gold stored in Switzerland, sourced from mines that comply with ESG standards. The fund sidesteps artisanal mining risks by exclusively investing in large-scale mining operations that adhere to national regulations with stringent environmental and ethical standards.

The fund ensures full transparency throughout the supply chain, from extraction to the final investment stage. Each link in the supply chain is carefully selected and the relevant information disclosed, allowing investors to gain a clear understanding of the provenance of the gold and how the mining company implements ESG in its operations.

Each ingot is fully traceable, originating from a single mine (Single Mine Origin – SMO).

The Bellevue Gold Project has been specifically selected for its commitment to responsible mining practices and reducing its carbon footprint. The company ranks as a significant player in the gold industry, producing more than 6 tonnes of gold per year.

Other mines that meet similar criteria may be selected in the future provided they measure up to the fund’s ESG requirements.

The gold is transported and refined by Metalor along a fully ringfenced chain of production.

To provide complete traceability, the fund uses the geoforensic passport, which verifies the exact geographical origin of the gold by analysing its chemical composition. This scientifically validated process – developed by the University of Lausanne in collaboration with Metalor (and co-funded by the Swiss government through lnnosuisse) – delivers an extremely reliable level of traceability.

The additional cost of approximately 0.4% of the total value incurred by the traceability process and gold storage in Switzerland is outweighed by the full assurance of transparency and maximum security for investors.

Selection using ESG screening

The fund manager carefully selects the companies in the value chain with a view to minimising ESG risks. We give preference to companies that mine gold responsibly and which have made ESG criteria pivotal to their operations and corporate strategy. The concept of governance is also considered because of its connection to sustainability. Each entity is required to have a transparent business structure and clearly defined responsibilities to ensure that ESG commitments are met.

The transition to clean energy today means encouraging industries adopt more responsible production methods, and mining is no exception. The fund prioritises those mining companies that are actively reducing their carbon footprint. The companies selected have an obligation to report on carbon emissions (under scopes 1 and 2) in line with global standards, e.g. the Green House Gas Protocol.

As part of this process, the manager uses a best-in-class approach based on peer-group comparisons of ESG performance. Only those whose ratings exceed a pre-defined hurdle are deemed suitable to supply physical gold. To gain further insight, supplementary data from external sources is used to guarantee that the assessment is impartial and comprehensive.

Exclusions

Companies that also operate in sectors deemed sensitive such as conventional arms, tobacco, alcohol, gambling, pornography, genetically modified organisms and nuclear energy, or those embroiled in significant controversies pertaining to the principles enshrined in the United Nations Global Compact and other international conventions, are excluded from the physical gold supply chain.

ESG audit

The portfolio ESG assessment is conducted in accordance with the proprietary ESG Consensus® Methodology, from Conser ESG verifier SA, a Swiss sustainable investing consultancy. This methodology screens best-in-class investments using the opinions of key players in the SRI industry, then assigns an ESG rating to each investment. Rating trends affecting mining companies are monitored by the fund manager. If a rating drops below a set threshold (ESG Consensus® Rating of B or higher on a scale of A+ to D), the mining company in question is excluded from the supply chain.