Sprott has filed for the ESG Gold ETF (SESG), which will provide investors an opportunity to get exposure to gold sourced from mines that meet a certain ESG standard.
With record heat seen around the globe, the importance of sustainability and the effort to mitigate climate catastrophe is becoming more urgent than ever. SESG could give investors exposure to gold that hasn’t come at a steep environmental cost.
“The emissions associated with holding gold are frankly a lot less than holding equities,” said Terry Heymann, CFO of gold trade-group World Gold Council, to Barron’s last year. But gold mining has historically been an emissions-heavy process. In 2019, the World Gold Council published Responsible Gold Mining Principles to support the goals of the Paris Climate Accord. “You’re going to see a lot more use of renewables [at mines]— solar, hydro, or wind,” Heymann noted. “Secondly, you’re going to see a move towards electric vehicles.” Gold mining giant Newmont (NEM) has an all-electric mine in Northern Ontario that has a fleet battery-powered trucks.
Sprott’s new filing will continue to push gold toward being greener and provide investors with an environmentally sound way to hold the yellow metal. Gold has weathered the economic storms of inflation, rising rates, geopolitical chaos, and volatility well so far.
SESG will join Sprott’s precious metal suite, which includes the Sprott Physical Gold Trust (PHYS), the Sprott Physical Silver Trust (PSLV ), the Sprott Gold Miners ETF (SGDM ), and the Sprott Junior Gold Miners ETF (SGDJ ).
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