Spotlight on Terry Heymann, Chief Financial Officer, World Gold Council
Global Thought Leader Spotlight
Terry Heymann, Chief Financial Officer, World Gold Council (WGC)
“Climate change is, perhaps, the greatest risk to global prosperity and economic growth. The potential restructuring of the economy in the face of climate impacts also offers substantial new opportunities for growth and innovation, and investors, policy makers and market regulators are increasingly aware of the need to reconsider their positions and strategies to adequately reflect these risks and opportunities.
“As the Chief Financial Officer (CFO) at World Gold Council I am responsible not only for the day-to-day financial stewardship of the organisation, but also setting the World Gold Council’s ESG agenda.
“In recent years there has been an increased focus from investors and consumers on environmental, social and governance factors. This increased emphasis reflects growing pressure for businesses to actively monitor and manage ESG risks. It also supports the position that good ESG performance can lead to better long-term financial performance.
“Institutional investors have been particularly active in seeking to re-examine their portfolios to ensure their investment holdings are more resilient to climate risks while also supporting the transition to a net zero carbon economy.
“Gold’s characteristics, in terms of its market structure and supply chain dynamics, and its resilience as a store of value, have some quite significant implications for investors considering the carbon profile and decarbonisation potential of their assets.
“The shift towards greater integration of ESG objectives within investment strategies has important implications for gold, the role it can play in supporting those goals and managing associated risks within a portfolio. Of course, the gold itself should be responsibly produced and responsibly sourced.
“I am also responsible for working with our Members to set important industry standards, including overseeing the development of the Responsible Gold Mining Principles (RGMPs).
“It is our aim that these Principles will become a credible and widely recognised framework through which gold mining companies can provide confidence that their gold has been produced responsibly. The RGMPs are intended to recognise and consolidate existing standards and instruments under a single framework. Prior to the development of the Responsible Gold Mining Principles, there was no single coherent framework that defined responsible gold mining.
“At the World Gold Council, we recently announced our strategic vision, Gold24/7, which looks at the digital transformation of the global gold market.
“This vision is focused on three core pillars of integrity, accessibility and fungibility. This initiative aims to engender greater trust, enable broader market participation, boost the reputation of gold as an investment asset, and ultimately, unlock more demand.
“As part of the integrity pillar, we have partnered with the London Bullion Market Association (LBMA) to develop and implement an international system of gold bar integrity. Using distributed ledger (blockchain) technology, the aim is to expand the trusted, closed-loop ecosystem for the 400oz gold bar market to incorporate smaller bars. In time, this will help market participants to trust that their gold is authentic and has been responsibly produced and sourced.
“Tracking gold bars throughout the supply chain will help promote responsible gold sourcing and fabrication standards, improving trust in the asset. Gold Bar Integrity is the critical, foundational work that must be embedded in the industry to create more fungible markets that are accessible and relevant to a broader investment audience.
“When we think about fungible markets, we must recognise that the current structure of the gold market is fragmented and prevents gold from being an easily tradeable financial asset. In order for the gold market to be fully fungible, the industry must work together to establish a global standard to which all can adhere.
“Being able to trade gold 24/7 online will result in increased liquidity, greater demand and lower cost to trade. This would bring gold in line with other, mainstream financial assets and unlock new use cases in payments, collateral, financing and more.
“This further reinforces gold’s proven ability to enhance risk adjusted returns in a balanced portfolio, coupled with its positive ESG credentials including its contribution to climate risk mitigation and positive socio-economic impacts.”
Terry will share his expertise and insights on the work being done in ensuring the sustainable and responsible sourcing of gold, a critical input along with other metals and minerals in transitioning global economies to net zero carbon at Global Investment Institute’s upcoming virtual roundtable titled, ESG in Critical Materials Mining: Enabling the Transition to a Net Zero Carbon Economy, taking place via live video from 9.30am-10.45am (AEST) on Thursday, 27 October 2022.
To register your interest in joining the discussion via video from home or office, click here or for more information and to request the Agenda for this event, email zlatan.kapetanovic@globalii.com.au.
Terry Heymann, Chief Financial Officer, World Gold Council (WGC)
Terry Heymann is the CFO at the World Gold Council and has broad experience across the gold supply chain. In addition to his role as CFO, Terry also oversees the World Gold Council’s work on standard-setting for the industry, including development of the Responsible Gold Mining Principles, the Conflict-Free Gold Standard and the Guidance Note on All-In costs, all of which support increased transparency and integrity in the gold industry.
Prior to joining the World Gold Council, Terry was a Principal at Marakon Associates, a leading strategy consultancy, where he helped clients in a number of industries on strategic issues and new product development.
Terry holds an MBA, Business Administration and Management, General from Harvard Business School and a BA, Meng, Manufacturing Engineering from the University of Cambridge.
Disclaimer
The views expressed in this publication are solely those of the individual and do not reflect those of their employer organisation.
All information contained within this publication is general advice only, as the knowledge levels and needs of all individual and corporate investors vary greatly this publication should not be used solely as a decision-making tool, further opinions and information should be sought before making an investment decision. It is the recommendation of Global Investment Institute (GII) that you seek the opinions of a fee-for-service, independent investment adviser before making any investment decision.
The authors, directors or guest writers may have a financial interest as investors, trustees or directors in investments discussed or recommended in this document. It has been assessed by the editors that these financial interests have not had an impact on the material contained here within.
All material appearing in GII’s Global Investment Insights is copyright, reproduction in whole or part is not permitted without written permission from the Publisher, GII.