LONDON – The London Metal Exchange (LME) on Tuesday announced a register to digitally store the sustainability credentials and other characteristics of metals trading on its platform, beginning with energy-intensive aluminium.
The register, known as the LMEpassport, will transfer Certificates of Analysis, or quality assurance documents based on a metal’s size, shape, purity and other characteristics, from the traditional paper method to a digital system.
It will also allow users to disclose information on Environmental, Social and Governance (ESG) credentials, including carbon footprint, water use and social impact.
Aluminium is particularly energy intensive, meaning it has a high carbon footprint, although it has a major role in the transition to a lower carbon economy.
In the auto sector, it is valued for being lighter than steel, meaning it can allow cars to burn less fuel, and it is infinitely recyclable.
The exchange is also launching a spot trading platform for lower carbon aluminium, made using renewable power.
Aluminium producers will be able to use the register from Oct. 1 and other metal producers will follow from Jan. 1, the LME said.
Disclosure on the sustainability of LME-listed brands will at first be voluntary but the LME said it will liase with the market to “monitor take-up, and decide next steps as appropriate”.