Sprott launches new ESG-focused gold ETF
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(Kitco News) - Sprott Inc, a leader in the precious metals space, has now become an advocate for environmentally responsible and ethically sourced gold with a new exchange-traded fund.
Tuesday, the world's most prominent precious metals investment firm launched the Sprott ESG Gold ETF (NYSE Arca: SESG).
"SESG is the first gold ETF that invests in gold bullion that meets the Environmental, Social, and Governance (ESG) and provenance standards specially developed by Sprott," the company said.
The company has partnered with the Royal Canadian Mint to hold the ETF's physical precious metal. The investment firm said it will be buying gold for its ETF from several Canadian mines operated by Agnico Eagle Mines Limited (NYSE: AEM) (TSX: AEM) and Yamana Gold Inc. (TSX: YRI; NYSE: AUY; LSE: AUY).
"We created SESG to fill a gap in the marketplace with a gold fund focused on trust, transparency, and traceability. Our goal is to answer a number of key questions for investors: where does my gold come from, who produced it and was it produced sustainably by recognized ESG leaders? Through our partnership with the Royal Canadian Mint and our relationships with leading Canadian gold producers, Sprott is uniquely positioned to offer a convenient way for investors to own physical gold that aligns with their ESG values," said John Ciampaglia, CEO of Sprott Asset Management.
Sprott expects to expand its precious metal sources to include other North American-focused producers that have proven and transparent ESG track records. Producers providing gold for the new fund will also comply with the Canadian mint's Responsible Metals Program.
Gold producers have noted that demand for sustainably and ethically sourced gold continues to rise. Canadian companies have been at the forefront of the ESG movement.
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"We understand that ESG considerations are an opportunity to drive improved performance and deliver on our vision to build a high-value business. We believe that we are recognized within the mining industry for our global leading ESG practices, for having one of the lowest GHG intensities and for operating in safe jurisdictions. Agnico Eagle is proud to be a partner of choice as a trusted source of responsibly produced gold for this first ESG Gold Fund," said Carol Plummer, Agnico Eagle's Executive Vice President, Operational Excellence, in a statement.
"It is vital that we protect our operating environments and maximize the positive impact we have in host communities. That is why we are delighted to partner with Sprott in the first-ever ESG-focused physical gold fund established specifically to acquire gold that is underpinned by strong ESG fundamentals. We believe that Yamana's inclusion in this fund reflects our strong performance and commitment to push boundaries in the industry to deliver responsibly mined gold ounces that benefit all," said Daniel Racine, President, and CEO of Yamana Gold.