Demonstrating responsible management of lead in the battery value chain
The London Metals Exchange Responsible Sourcing Initiative
Hugo Brodie, London Metal Exchange, United Kingdom
The London Metal Exchange (LME) recently launched a consultation on the proposed introduction of responsible sourcing standards across all its listed brands. These rules would implement standards which are consistent with, or build upon, the OECD Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas and build on responsible sourcing work already undertaken by the industry.
The LME’s proposed rules will require all its listed brands to undertake a Red Flag Assessment based on the OECD by the end of 2020. If this assessment demonstrates potential responsible sourcing red flags, then that brand will be classified as a Higher-Focus Brand and will also need to be audited as compliant with an OECD-aligned standard by the end of 2022. The LME’s phased transparency approach will ensure that all LME-listed brands publish fully attributed Red Flag Assessments to the market by the end of 2024, while respecting requirements of commercial confidentiality. By deploying the twin tools of transparency and standards the LME will provide certainty to buyers of metal and global consumers, that all brands meet a minimum level of responsible sourcing compliance.
The LME’s requirements are consistent with the OECD Guidance, and have been designed specifically to respect and build on work already undertaken by industry bodies and companies. However, based on stakeholder and market feedback, the LME’s proposals adopt a broad interpretation of the core OECD requirements in certain key respects.
Hugo will present the LME’s intended plan of action around responsible sourcing, giving the Pb2019 audience a chance to give their feedback and ask questions. Alongside this, Hugo will also share updates around the latest LME developments, including its new product suite and provide an update on the LME lead contract.
Hugo Brodie works within the CEO office at the London Metal Exchange with a focus on responsible sourcing and new projects. Prior to this he was driving the launch of warehousing initiatives and new product launches undertaken by the Exchange. Hugo joined the LME in September 2015, having previously worked in Integrated Supply & Trading at BP in both trading and risk roles.
Pb2019 is run by the industry for the industry