The LME brings together the mining industry with the financial community as a futures and options exchange. The exchange operates under governance principles of accountability, transparency, fairness and integrity with a board of directors, executive team and advisory committees.

The LME launched a digital sustainability credential register, LMEpassport, in 2021 and implemented responsible sourcing rules in 2019. The LME is now seeking consultation on how to best meet the challenges of regulatory changes such as the EU Carbon-Border Adjustment Mechanism (CBAM). The discussion paper includes the role, growth and transparency of sustainability data, supply chain traceability and the circular economy.

The responsible sourcing requirements are established in the LME Policy on Responsible Sourcing of LME Listed Brands (2023) and the LME Rulebook (Part 7). The Policy sets out requirements, including certification under ISO 14001 Environmental Management Systems and ISO 45001 Occupational Health and Safety, assessed and certified by a third-party assessor. The Policy also details secondary materials requirements that are compliant with relevant OECD Guidance, such as completion of sourcing attestation forms. The LME conducts a review of the forms and determines the classification of the product.

The LME provides guidance notes to producers to improve industry capability to meet the Responsible Sourcing Policy. Producers include upstream primary producers and downstream production. Examples of upstream accredited brands include BHP Olympic Dam Corporation, Copper-Zijin Mining Group, Minera Escondida Limitada, SCM Minera Lumina Copper Chile, and downstream accredited brands such as Mitsubishi Materials Corporation and JX Nippon Mining and Metals Corporation.

The guidance notes include topics such as conflict-affected and high-risk areas and compliance with ISO 14001. The LME reports on this annually as part of its sustainability update. The 2023 sustainability update noted that 74 producers disclosed their ISO 14001 certificates, which is 100 per cent of relevant producers, across all base metals on the LME. The update also noted that there had been material improvements in reporting details and understanding of the requirements.

The LME’s Responsible Sourcing Policy and expectations are increasing awareness and improving assurance in the industry sectors they work with, including copper.

London Metals Exchange (LME) is one of the largest commodities exchanges for the trading of industrial metals.