The London Metal Exchange (LME) announced the launch of LME passports, a digital register that stores electronic Certificates of Analysis (CoAs) and sustainability credentials for LME-listed metals. Aluminium will be the first to be issued these passports.
The LME passport stores digital versions of the previously paper-based CoAs, which are key specification and quality assurance documents that must accompany shipments of LME metals into and out of warehouses. The first metal to be given access to the digital passport is aluminium.
Existing paper and PDF format CoAs can be easily scanned and digitised on the platform, transforming previously unstructured data into information. Metal producers are encouraged to record information in LME passport at the point of production, thereby reducing the need for downstream stakeholders to access traditional CoA documents. LMEpassport also enables users to provide disclosures related to metals’ sustainability characteristics on a voluntary basis.
Robin Martin, LME Head of Market Development commented on the new passport,
“The metals industry is increasingly embracing digital solutions to streamline manual processes for customers across the value chain… LME passport provides substantial benefits for users – not only by automating manual processes and reducing operational risk, but by providing greater transparency and access to provenance data, for which there is growing consumer demand.”Robin Martin, LME Head of Market Development
Following collaboration with market stakeholders, the LME has developed a sustainability taxonomy, which provides LME passport users with a straightforward categorisation framework, making it easier to navigate the wide range of sustainability-related focus areas across metals.
Georgina Hallett, LME Chief Sustainability Officer, commented:
LME passport will be phased in for all metals that require CoAs, starting with LME Aluminium from 1 October 2021. From this date, all primary aluminium loaded out of LME warehouses will be accompanied by an electronic CoA on LME passport, allowing downstream users ready access to relevant information.
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“The metals industry already has a rich set of standards and certifications available, many of which have strong support from stakeholders. The value of LME passport is in providing a consolidated and comparable view of such information for different batches of metal.”Georgina Hallett, LME Chief Sustainability Officer