Published Date: February 18, 2024
Author: HANetf
Since the start of the Industrial Revolution in the mid-18th century there has been an increased release of greenhouse gas (GHG) emissions into the atmosphere. As GHG emissions accumulate in the atmosphere and trap heat global average temperatures increase.
To limit this global warming to “well below” 2°C global greenhouse gas emissions must be decline by approximately 45% by 2030 relative to their 2010 levels. As a result governments and private organizations are increasingly committed to decarbonization or “net-zero.”
With the world moving toward net-zero emissions investors also need to consider the amount of carbon emissions associated with their own portfolio. Companies with a lower carbon intensity are better prepared for what lies ahead. Companies with high associated emissions will face higher costs either due to carbon pricing and other forms of policy pressure.
This presents a potential problem for investors looking for gold exposure. While all of our economic activities generate carbon some do more damage than others. Typically mining is seen as an activity with a higher environmental impact. [1]
The gold mining process is also very energy intensive. The extraction and grinding of ore requires almost 90000 KJ per gram of gold produced. That is equivalent to about one day of electricity use for the average American home.[2] Therefore there is a strong case for increasing the amount of gold we recycle. In theory almost the entire stock of gold ever mined in human history (205238 tonnes) can be recycled.
There are two potential ways investors can reduce the carbon associated with their gold exposure.
One way for investors to reconcile this problem is to seek exposure to recycled gold. Recycled gold is over 90% less carbon intensive than mined gold.[3] Indeed for this reason outside of financial markets recycled gold is becoming increasingly favoured. There is a growing amount of discarded phones and other e-waste globally encouraging some large hardware manufacturers to opt for recycled gold. For example Apple now uses 100% recycled gold in the plating of the main logic board and the wire in the front camera and rear cameras. According to Apple 2.6 million tonnes of mined rock equivalent have been avoided by using recycled content in the iPhone 13. [4]
Thanks to the efforts of The Royal Mint Responsibly Sourced Physical Gold ETC (RMAU) recycled gold can now play a greater role in investor portfolios. The Royal Mint recently outlined its aims to increase its use of recycled gold on a best endeavours basis meaning a portion of the ETC will be backed by gold bars composed of 100% recycled gold. Recycled gold is over 90% less carbon intensive than mined gold allowing investors lower carbon exposure to this vital asset class. The Royal Mint has an extensive physical coin and bar business which it can draw upon to source recycled gold.
For investors looking for gold mining exposure another potential solution is the AuAg ESG Gold Mining UCITS ETF (ESGO).
ESGO provides exposure to the gold mining industry by focusing on the 25 best-in-class ESG rated companies in the sector. ESGO is the only gold mining ETF with an ESG screen. As a result it has a lower carbon intensity and turns a brown industry greener.
The ETF uses Sustainalytics to screen the mining universe for their ESG credentials attributing a risk score based on their findings. Only the top 25 lowest ESG Risk companies are included within the index.
As well as reducing potential exposure to companies with poor governance and social adverse practices the screen takes into account the greenhouse gas emissions (scope 1 and 2) of companies when assessing its ESG risk score.
As a result the ETF has a lower carbon intensity than other major gold mining indices as can be seen in the table below. Using ESGO for gold mining exposure therefore can reduce the overall emissions with the portfolio.
In recognition of the ETF’s sustainable profile MSCI ESG Fund Ratings awards ESGO a AAA score. ESGO is also the only gold mining UCITS ETF with an SFDR Article 8 classification.
*Weighted average of the portfolio companies’ carbon intensities by portfolio weights. **Portfolio Financed Emissions divided by the sum of revenues attributable to the portfolio. Portfolio Finance Emissions are the owed emissions for all securities in a portfolio
The ETF is also equal weighted. This helps to avoid concentration risks. The probability of having for example two companies with a combined weighting of 25-35% is relatively high in a market/liquid weighted index for a single sector. In addition the possible underweighting of a few dominant mega-companies may also provide a beneficial return profile for AuAg ESG Gold Mining UCITS ETF in a bull market for gold and gold miners.
By investing in these low carbon solutions investors can not only align their portfolios with their values and avoid being caught out by exposure to assets with a high carbon intensity. By including RMAU or ESGO in a portfolio for gold exposure investors will be able to report a lower average carbon intensity for their portfolios reducing both transition and reputation risk.
Please remember that when you invest in ETFs and ETCs your capital is at risk.
[1] Carbonemission curves for iron ore copper met coal and nickel – MINING.COM
[2] Environmental Effects Of GoldMining (theworldcounts.com)
[3] https://link.springer.com/article/10.1007/s11367-020-01809-6
[4] Environment – Apple (UK)
Four key drivers behind copper’s growth opportunity
September 2026
Three things investors should consider before investing in uranium ETFs
The Merits of Bottom-Up Investing
El Niño’s ripple effects: How a strengthening pacific pattern is moving different asset classes
August 2026
The forces shaping crypto’s next move
Buried Treasure: How Geopolitical Relief Could Unearth Mining Gains
Canada beyond the headlines: the case for energy, financials, and real estate
Beyond a Chatbot: How can emerging-market platforms monetise AI?
July 2026
Lloyd Capital Outlook
Mag 7 to Lag 7: What a tech stumble says about the potential risks of investing in major indices
Natural Gas – growing source of global energy and uncertainty
What is the cost of rebuilding Ukraine?
June 2026
Why are central banks buying what they once sold?
Defence 2.0: How Drones and Cyber are reshaping investments
What investors should consider before investing in Defence ETFs in 2026
Copper’s role in the world has shifted
The quest for the perfect business
How memory is the AI bottleneck
What does AI mean for cyber defence?
Do drones mean the death of defence primes?
Computing’s next big disruption is already here
May 2026
Why can’t silver supply keep up with demand?
How much will the US military spend on drones?
What does the Iran war mean for travel and North American energy?
April 2026
Navigating geopolitics, energy security and structural demand
Global Instability and the Future of European Energy Security
Canada has what the world needs
March 2026
Ukraine could become the West’s solution for rearmament
Iran crisis – four sectors to keep on your radar
From tanks to code: why the next defence boom will be digital
February 2026
Why cybersecurity and defence may be complementary themes?
Preferred shares and outlook for months ahead
Next stop for global travel
The new nuclear age – why physical uranium matters now
Critical Commodities for 2026
Reconciling responsibility with rearmament
January 2026
The New Age of Tech | Tech Megatrend Outlook 2026
The Future of Emerging Markets: 2026 Market Outlook
Shape of the Markets by PT Asset Management
October 2025
Nuclear Energy – why uranium is back in favour
September 2025
Copper’s less known demand driver: defence
Indo-Pacific Rearmament: How much will defence budgets grow by 2030?
How gold is custodied and why it should matter to investors
Travel in 2025 – strong data drives growth
August 2025
Understanding covered call ETFs
Different approaches to covered call ETFs
The opportunity presented by volatility
Heightened demand for defence in the pacific region
Three drivers of the health care sector in 2025
Equal weighted tech – an interview with Anthony Ginsberg
July 2025
Indo-Pacific Defence: What, Why and How?
Magnificent 8 of India – High-growth tech stocks in India to watch
The nuclear revival – a new dawn for uranium investment
June 2025
ETFs are getting active – is your portfolio ready?
May 2025
Three themes shaping the future of energy and ETFs to access them
Sharpening the Blade: How traders use leveraged and short crypto ETPs
Practical Uses for Leveraged and Short Crypto ETPs
April 2025
Why it is not too late for European defence
Understanding Daily Leveraged and Short ETPs
The basics of the covered call strategy: Potential income and capital growth
March 2025
Tariffs, Tensions and the Uranium Opportunity
What would a US withdrawal from NATO mean for European defence?
Holding case study: Rheinmetall
Holding case study: Bae Systems
Three themes that are reshaping the gold market
February 2025
ETFs Are Gaining Ground Over Mutual Funds
Europe’s sidelining by US prompts defence spending reality check
Will Europe be forced to defend itself alone?
December 2024
Uranium 2025: Opportunities in a Structurally Undersupplied Market
Copper 2025: The Red Metal’s Next Chapter After a Year in the Black
Midstream Energy: Dividend Growth and Natural Gas Demand Drive 2025 Outlook
Emerging Markets 2025: The Rise of Digital and E-Commerce Giants
2025: A Year for Disciplined Investing in an Uncertain World
Health care’s Comeback: Why 2025 Could Revive the Sector’s Vital Signs
Trump and Tech: M&A Revival, Trade Shifts, and the Rise of Automation
Bitcoin’s Year Ahead: Why 2025 Could Be a Halving Hit
Clear skies ahead: is the travel industry poised for takeoff in 2025?
Golden Era: Why 2025 Could Shine Bright for Gold and Miners
Global Equities Under Trump: A New Era of Tariffs, Taxes, and Uncertainty
Europe rearms for a world of greater geopolitical risk
November 2024
US Election 2024: The Stakes for NATO and the Defence Industry
October 2024
Do the Mag 7 have too much influence over the S&P 500?
Investors don’t care enough about recycled gold
The Royal Mint: A Millennium in the Making
Currency Hedged Physical Gold ETCs FAQs
Why would you use an ETF over a mutual fund?
Five companies leading India’s internet boom
September 2024
Can gold shine through the market turbulence
August 2024
Taking a U-turn: the world may be ready to embrace nuclear
June 2024
AI adds to positive natural gas outlook
Copper – the defining metal of a new age
Trump stance will force NATO countries to spend more whether elected or not
May 2024
The great travel industry rebound
ESG Mining – Turning a brown industry greener
ESG and defence investing: a balancing act
Dominant Magnificent 7 could lose ground to broader tech rally
The fall of Russian defence spending, and the rise of NATO
April 2024
The AI Revolution – a commodities play?
Recycled gold and traceability
Why investors should consider defence
Copper’s new supercycle | Fresh highs and the long-term story
Bitcoin in 2024 – a monumental year so far
March 2024
Gold price rallies but miners need to catch up
Investing in India’s rise – what makes India an ideal emerging market?
February 2024
Global instability – three potential ways to hedge
Energy Transition: The Metal Elephant in the Room
January 2024
HANetf’s 2024 Outlook
December 2023
US ETFs are not the only ETF wrapper with a tax advantage; Irish domiciled ETFs have one too!
March 2023
Making Gold sustainable with HANetf’s Recycled Gold ETC and ESG Gold Mining ETF
February 2023
Article | There is no Walt Disney Company in crypto yet…
January 2023
Gold Shining in 2023?
HANetf 2022 wrap up and outlook for 2023: Where did the inflows go?
Key Dates for Digital Assets in 2022
Article | The Merge and Ethereum – what you need to know
September 2022
Article | Why small ETFs are not necessarily less liquid
February 2022
Solar Energy 101 | Understanding the Solar Energy UCITS ETF
June 2021
The Royal Mint ESG Credentials
May 2021
Six Things to Know about Investing in a Gold ETC
August 2020
The Royal Mint Physical Gold ETC (RMAU) Frequently Asked Questions
April 2020
The Importance of the Physical Gold ETC Custodian | RMAU
March 2020
Responsible Gold Bars & Physical Redemption | RMAU | The Royal Mint Physical Gold ETC
Select Your Country
Select Your Investor Type
Choose a brokerage
Choose a product
You are now leaving HANetf's website and accessing a third-party website. HANetf may provide access to information, products, or services offered on websites that are owned or operated by other companies ("third-party websites"). We provide this access through the use of hyperlinks that automatically move you from a HANetf website to the third-party site.
While we do our best to provide you with helpful, trustworthy resources, HANetf cannot endorse, approve, or guarantee information, products, services, or recommendations provided at a third-party website. Since we may not always know when information on a linked site changes, HANetf is not responsible for the content or accuracy of any third-party website. HANetf shall not be responsible for any loss or damage of any sort resulting from the use of a link on its websites nor will it be liable for any failure of products or services advertised or provided on these linked sites.
HANetf offers you links on an "as is" basis. When you visit a third-party website by using a link on a HANetf site, you will no longer be protected by the HANetf privacy policy or security practices. The data collection, use, and protection practices of the linked site may differ from the practices of HANetf sites. You should familiarize yourself with the privacy policy and security practices of the linked website. Those are the policies and practices that will apply to your use of the linked website, not the HANetf policies and practices.
Here are some tips to help you tell if you have left a HANetf website:
Important Notice: HANetf is a provider of Exchange Traded Funds (ETFs) and Exchange Traded Commodities (ETCs). We do not sell investment products directly to individual investors. Our funds are available through regulated investment platforms and brokers. Our only official website is www.hanetf.com. Any other domain is not affiliated with or authorised by HANetf in any way. If you suspect fraudulent activity, please contact your local financial regulator and/or the police and report the website or individual involved.