MINE-LEVEL PERFORMANCE, MADE VISIBLE
Transparency & Accountability
BENCHMARK GOALS
We believe better decisions start with better visibility. The SMO ESG Benchmark brings mine-level environmental, social and governance data into one place so investors, regulators, NGOs, customers and mining companies can compare reported performance more easily.
- MAKE DATA VISIBLE: present mine-level information in a consistent, accessible format.
- SUPPORT COMPARISON: standardise reported metrics so users can compare mines on a like-for-like basis where data permits.
- ENCOURAGE PROGRESS: use greater transparency to support informed scrutiny and continuous improvement.
CHAMPIONING
RESPONSIBLE MINING
SMO uses the ESG Benchmark to compare disaggregated environmental, social and governance data reported by gold-mining companies.
The Benchmark was developed around key mine-level ESG themes, with relevant metrics mapped to the United Nations Sustainable Development Goals (SDGs) and, where applicable, SASB and GRI reporting frameworks.
This allows SMO to assess mine-level performance across issues such as emissions, water, biodiversity, safety, local employment and community investment, while placing that performance within widely recognised international sustainability frameworks.
The Benchmark is a comparison and due-diligence tool rather than a certification scheme. SMO uses its findings alongside defined eligibility criteria and recognised responsible-mining frameworks when reviewing Member Mines.
DATA LIMITATIONS
Mine-site ESG reporting is not standardised globally and is not available for every mine.
The Benchmark therefore reflects only mines for which sufficient public mine-level data is available. Regional operating conditions, reporting periods, calculation methods and disclosure scope can affect comparisons.
SMO Gold standardises figures into comparable units where reasonably possible and records the source used for each metric. Users should consider the underlying source and mine context when interpreting comparisons.
DATA SOURCES
Mine-site ESG reporting is not standardised globally and is not available for every mine. The Benchmark therefore reflects only mines for which sufficient public mine-level data is available. Regional operating conditions, reporting periods, calculation methods and disclosure scope can affect comparisons.
SMO Gold standardises figures into comparable units where reasonably possible and records the source used for each metric. Users should consider the underlying source and mine context when interpreting comparisons.
PREMIUM LEVEL
SMO is currently in the process of developing an enhanced premium version of the SMO ESG Benchmark with exciting new features, including:
• Regional Benchmarks: initially covering North America, South America, Africa and Asia
• Expanded Data Access: All gold mining ESG data, both SMO and non-SMO, will be accessible on a mine-site level basis, giving users the ability to view and compare data for the entire population of gold mines
• Multi-Mine Selection: Capability to select mines for comparison against each other and/or global/regional benchmarks
• Download Functionality: Users can download data displayed on screen to enable more meaningful data analysis
• Historical Data Availability: Prior-year data will be available (from 2021), enabling comparisons and trend analysis
• Company-Level Data Aggregation: Users will be able to aggregate company-level data and compare it against the SMO Global Benchmark. This feature is designed to cater to analysts interested in evaluating specific companies within the gold mining industry.
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WHAT MAKES AN SMO MEMBER MINE?
SMO assesses prospective Member Mines against defined eligibility criteria and recognised responsible-mining frameworks.
The review includes corporate-level governance and mine-level environmental and social information, together with location and risk considerations. Mines that meet the criteria may be admitted as SMO Member Mines, subject to ongoing due diligence.
DETERMINING
MINE ELIGIBILITY
All member mines must adhere to SMO’s stringent ESG standards.
The term “SMO Approved Gold” refers to gold sourced and produced in line with SMO’s ESG standards and criteria, providing consumers and investors with enhanced ESG scrutiny and insight into their gold’s origin. These ESG criteria evaluate both mining companies and mine-site specific practices and are subject to evolution over time at SMO’s discretion. Certain criteria may not universally apply to all eligible gold sources due to factors such as changes in mining techniques, legal standards, industry standards, or elimination of existing frameworks.
Mining companies and mines adhering to SMO’s ESG criteria, referred to as “SMO Approved Mining Companies” and “SMO Approved Mines,” respectively, must comply with the Responsible Gold Mining Principles (“RGMPs”) established by the World Gold Council (“WGC”) or an equivalent internationally accepted standard. SMO applies the ESG criteria through a multi-level evaluation process, combining objective factors and subjective judgement.
STEP ONE
SMO evaluates mining companies at the corporate level using specific ESG factors, third-party research ratings, compliance with SMO governance metrics, and adherence to industry standards. Companies meeting high standards are recognised as “SMO Mining Companies”.
STEP TWO
SMO assesses each mine location of an SMO Approved Mining Company, considering mine performance against environmental and social benchmarks, application of ESG factors, and the determination of whether the mine operates in a heightened risk or conflict area. Mines in eligible locations can be onboarded as “SMO Approved Mines”, while those in conflict areas undergo enhanced due diligence.
The adaptive approach underscores SMO’s commitment to responsible mining practices, recognising the potential complexities faced by operations in conflict-affected regions.
MEMBER STATUS
MEMBER AND ASSOCIATE MINES
SMO works with Member Mines that meet its eligibility criteria and are actively engaged in supplying or developing traceable SMO Gold routes.
Associate Mine status identifies mines that meet the relevant entry criteria but are not currently operating as full SMO Member Mines. Both statuses are subject to ongoing due diligence.
