Our compliance and transparency standards are the foundation on which the trust of our employees and customers as well as other stakeholders is built. Earning and maintaining this trust is the basis for our success. It requires an unwavering commitment to integrity and good business practices.

 

We value long-term relationships over short-term profits and have always ensured that processes are transparent and auditable. Our approach to compliance has three aspects: prevent, detect, and respond. Our highest priority by far is prevention.

Our approach

At Argor-Heraeus, we believe in the power of strong and accountable governance to drive our company forward. Our governance framework, policies and guidelines far surpass the requirements of the law.

Our corporate policies and procedures serve as clear guidelines for our employees. With a strong focus on transparency and responsibility, these policies ensure that we collaborate solely with partners who share our commitment to responsible business conduct. It is essential for us to maintain a high standard of operation, which is why we hold certifications from prominent national and international organizations.

 

Our supply chain management system undergoes rigorous internal and external audits conducted by expert professionals to ensure compliance with rules and standards.

Governance

The Argor-Heraeus governance system, incorporated and aligned with that of the Heraeus Group and Heraeus Precious Metals, aims to ensure compliance with all laws, regulations, standards as well as internal policies and guidelines.

Our Guiding Principles

Our Guiding Principles are the cornerstone of our culture. They serve as a general orientation and guide as to how we conduct our business. These principles define behaviors and mindsets that are essential for successful cooperation with our partners, customers, and within our company.

 

We expect all employees worldwide to bring our core values to life and therefore work continuously to ensure their implementation and ongoing development.

CUSTOMER FOCUS

We concentrate on our
customers’ needs.

CLEAR LANGUAGE AND RESPECT

We communicate clearly
and respect each other.

DIVERSITY

We foster different
perspectives
and diverse teams.

CONTINUOUS IMPROVEMENT

We continuously
want to get better.

ACCOUNTABILITY

We are responsible for
our success and failures.

RESPONSIBILITY

We care about people
and our planet.

Company policies and rules

Our company policies and rules play a key role in facilitating the daily decision-making of all employees.
We regularly update these documents and ensure that our employees receive all necessary trainings on them.

Code of Conduct

Accreditations and certifications

Accreditations and certifications are an external and impartial testimony of the quality of the work we carry out every day, and of our responsible business conduct. We are certified by the major schemes in the sector for work and product quality, processes, and specific topics such as management of the value chain, environment, safety and compliance.

Among others, we:

We hold accreditations and certifications from the following bodies and are active members of several industry associations:

Verification of business partners

We thoroughly investigate each and every potential partner before entering into a business relationship.

Our company prioritizes the rigorous protocols known as “know your…” (customer, customer’s customer, business, bank, carrier, etc.), which apply to all potential partners and clients.

 

These protocols include a comprehensive evaluation of economic, environmental, and social criteria to ensure the highest standards of integrity and responsibility. Factors we evaluate include the absence of corruption, respect for human rights, no tolerance for child or forced labor, a commitment to the well-being of local communities and indigenous populations, and social and environmental practices.

To uphold our stringent standards, we have numerous measures in place.
These include:

If precious metal suppliers do not meet our standards, we refuse to enter into a business relationship with them. We terminate existing relationships if violations are detected that cannot be resolved or corrected. These stringent controls and evaluations are applied universally across all our global offices and operations.

 

Our system for responsible precious metal sourcing is certified by all major responsible precious metals sourcing frameworks such as LBMA, RJC, RMI and LPPM. In addition, we have developed our own policies and processes that go beyond these frameworks. We aim to encourage their widespread adoption throughout our supply chain and across the industry.

 

By collaborating closely with our supply chain partners, we strive to mitigate any potential negative effects, ensuring that the precious metals we receive for refining do not only meet responsible business principles but also contribute positively to the well-being of all involved.

 

By partnering with supranational bodies, governments, and sector associations, we actively contribute to finding solutions to the challenges we face. We participate in working groups, committees, associations, and task forces to enhance the integrity and transparency of our sector. Together, we work to define new guidelines, regulations and best practices that will shape the future of our industry.

Grievances

In 2023, we processed three grievance cases, two of which were newly reported to us in 2023.

As reported in the previous year, the non-governmental organization (NGO) Human Rights Watch approached us with a case from previous years regarding the mining company Midroc Gold Mine Plc in Ethiopia. All clarification processes with various organizations and with our clients were successfully cleared in 2023.

 

In 2023, we were approached by the NGO Fastenaktion, due to the alleged negative impacts of activities of the mining customer MINEROS. After a detailed exchange, including answering numerous questions, our offer for a joint meeting with the customer MINEROS was refused by Fastenaktion. Their report, published in October 2023, does not reflect the facts and we strongly disagree with its contents. As of today, we continue the dialogue with Fastenaktion.

 

The other new case in 2023 refers to concerns raised informally by representatives of communities in the Dominican Republic concerning the alleged negative impacts of a mine’s activities on the neighboring communities. We are working together with representatives of the communities and the supporting NGO to formalize the grievance, clarifying the differents views and support the finding of a solution with the respective mining company.

Reporting a concern

Argor-Heraeus takes suspected violations of human rights, criminal law, environmental law, and other laws and regulations very seriously. We encourage whistleblowers to report suspected violations and concerns via our compliance hotline or external ombudsman. In 2023, we made this even easier by introducing a new communication channel: Heraeus SpeakUp offers the possibility to report a compliance violation via internet, app, or by phone and allows an anonymous communication between the whistleblower and the person handling the incident.

More information under: www.heraeus/speakup

Further improving the traceability of gold

We have taken significant steps to ensure the traceability of gold from primary sources, providing customers with proof of origin. For all primary gold entering our gold refining site in Mendrisio, Switzerland, we conduct a thorough geoforensic analysis including X-ray fluorescence (XRF) scanning to measure the characteristic composition. This allows us to make an exact assignment to its origin.

To further ensure traceability, we offer DNA markers, which allow us to identify material added during shipment with a PCR test. After proving the origin, traceable gold is processed in segregated lines and digitally traced until it reaches its product state as investment bar, semifinished, or finished product.

 

To enable the retrieval of the origin data, in 2022 we partnered with Alitheon, a US-based company that specializes in artificial intelligence to authenticate physical products. The optical software generates digital fingerprints of gold bars that make them authenticable, identifiable, and traceable, even if their stamps or serial numbers are lost. This will allow buyers or investors to identify these bars by taking a photo. It is also possible to provide further information like its place of origin or carbon footprint.

 

In addition, we have entered a partnership with the Swiss start-up aXedras, a provider of distributed ledger technology (DLT) specialized in the gold supply chain. DLT enables to save data from business transactions decentrally and unchangeably. The aim of this collaboration is to create a digital documentation from mine origin to consumer product while guaranteeing data integrity. In the long term, this approach will help us to trace even secondary gold back to its mine of origin, which has been almost impossible until now.

Argor-Heraeus Sustainability Factbook 2023