GoldPillar International Fund SPC is continuously increasing its attention on sustainability within the board - from our investment processes to the investment solutions we offer. In our company there is a growing perception that the field presents a largely unused source of information that can recognise investment risks and generate excess returns.

Our company’s long-term growth potential is based on proactively tackling environmental, social and governance (ESG) issues. More refined data, more complex analysis and changing the social understanding of sustainability are the main factors taken into consideration in growing awareness and in promoting sustainable long-term growth benefitting both our company and investors.

We examine different key arguments motivating transformation in sustainable investing. Our work fuels our principle that the future of investing is sustainable.

• Sustainable investing is no longer a niche area; it is going mainstream because it deals with business-critical issues. Assets in dedicated sustainable investing strategies around the world have grown and evolved at a rapid rate in recent years. In our activities we constantly notice changes in clients’ interests in integrating sustainability-considerations into their investments.
• Enhanced data and visions make it possible to produce sustainable portfolios without compromising financial goals. We consider ESG has much in common with current value metrics such as strong balance sheets, suggesting ESG-friendly portfolios could be more resistant in recessions.
• Dynamic modernisation in sustainable investing is going more strongly. New skills and procedures have allowed us to make great steps in refining sustainability communication.
• Our incorporation of a focus on sustainability into investment processes is on constant growth - and for good cause. Incorporating applicable sustainability understandings can provide a more realistic view of the threats and opportunities related with a specific investment.

Our approach to sustainability:

Governance and Ethics

We commit to complying with applicable laws and regulations and to upholding high standards of business ethics and transparency. Our policies and management systems support this commitment, guiding how we operate and behave and holding everyone at GoldPillar International Fund SPC to clear and strong principles related to the workplace, human rights, communities, the environment and integrity.

Our Policies and Code of Conduct:

• Precious Metals Supply Chain Policy
• Grievances Whistleblowing Policy
• Code of Conduct

Corruption and bribery are considered potential risks in the precious metal supply chain. GoldPillar International Fund SPC’s ethical standards, as described in our Code of Conduct and our Precious Metals Supply Chain Policy, request behaviours that do not tolerate any form of corruption or bribery.
We expect our employees, and those with whom we do business, to comply with our standards. For this, we actively promote awareness of our standards and implement systems and controls to monitor and ensure compliance.

Any information regarding incidents related to any form of corruption or bribery as well as misconduct, dishonest or illegal activities occurring at GoldPillar International Fund SPC have to be reported. All the members of the Board of Directors, the Management Committee, the Sales Department and the Logistic Department have received relevant communications and have followed training with regards to the business practices, including anticorruption policies. In the reporting period, we have delivered such information and training to 21 persons (100% of our impacted employees and operations).

Due Diligence

To assess our corruption risk, we conduct due diligence on all potential and existing counterparties (individuals and companies), the locations of their operations and the countries of origins of the precious metals.

Health and Safety

Precious metals refining can present health and safety risks. It involves the handling of large volumes of materials, environments of extreme temperatures, and use of chemicals among other things. For GoldPillar International Fund SPC, protecting and promoting the health and safety of our employees is a number one priority at every level, within the plant and in the administrative offices. Health and safety is supervised by the GoldPillar International Fund SPC Health and Safety Manager, in collaboration with the Human Resources (HR) division.

Our safety target remains to achieve a "Zero Incidents rate". For this, our employees receive training on an ongoing basis.

Employee Training and Development

We offer a diversified programme made of mandatory and optional training and development sessions. The training topics touched multiple aspects including health and safety, IT, languages, lean manufacturing, finance, fire service, quality management, compliance, sworn assayer, precision measuring instruments and taxation.

Our Supply Chain

Precious metals refiners are a focal point of the value chain and act on two sides: as a service provider for incoming material and as a semi-finished or finished product provider to the global precious metals market.

Responsible Supply Chain

Operating responsible supply chains is vital to the sustainable success of our business and of our sector, and to the sustainable development of the countries from which the raw materials originate. We are aware of the risks of inadvertent involvement in, or contribution to, negative activities that may be associated with the extraction, processing, trading, handling and exporting of precious metals from any area but, more specifically, from conflict-affected and high-risk areas.

Our approach to responsible supply chains aims not only to protect our business, but also to drive best practices in our sector.

By supporting the development of rigorous standards and appropriate regulatory frameworks, and accompanying miners in adopting responsible practices, we can help improve global mining conditions over the long term.

Climate Change

Emissions

GoldPillar International Fund SPC operates in a very industrialized area with a high traffic density. We believe that air quality is a crucial issue, which is why we monitor our emissions regularly, working with the best abatement systems, always kept in the best conditions. According to the Greenhouse Gas Protocol (GGP), direct and indirect emissions can be categorized as follows:

• Scope 1: greenhouse gas emissions from sources owned or controlled by the organization.
• Scope 2: indirect emissions of greenhouse gases deriving from the generation of electricity purchased by the organization.
• Scope 3: other indirect greenhouse gas emissions that are a consequence of an organization’s opera-tions, but are not directly owned or controlled by the organization such as commuting employees, business trips, production of purchased goods, emissions from use of products sold.

GoldPillar International Fund SPC does not emit ozone-depleting substances into the atmosphere.

Energy Use

We are aware of the impact that the production of electricity from non-renewable sources has on the environment, and we continuously look to optimize our consumption by finding the right balance of costs and benefits.

Materials

We continuously look to reduce the quantities of chemical products we use. We do this by taking advantage of technical developments and by seeking better solutions for production such as using less environmentally-impactful reagents and sourcing precious metals from secondary feeds.

Despite the increased volume of precious metals processed, the consumption of material remained unchanged thanks to a continuous optimization of our production processes. It is critical that we use and handle these chemical substances in a responsible way to avoid negative impact on the environment and health. GoldPillar International Fund SPC trains its employees and contractors on the dangers and risks associated to these products, and on management techniques.

Waste

The efficient management of hazardous and non-hazardous waste is at the heart of GoldPillar International Fund SPC’s practices. GoldPillar International Fund SPC generates special wastes with environmentally friendly disposal require a set of specific technical and organisational measures and are collected by specialised companies legally recognised for disposal. We have developed a strict waste management system and we work only with-disposers that guarantee the highest quality standards. One hundred per cent of recyclable waste is collected by specialised and legally authorised recycling companies.

UN GOALS

We have aligned our approach to sustainability with the UN Sustainable Development Goals (SDGs)

• Supporting ASM: artisanal and small-scale gold mining (ASM) sector plays a crucial role in offering a way out of poverty for millions of miners and their families around the world. Through the work we are doing with the ASM sector, we support miners improve their practices so they can access global market and have better working conditions and livelihood.
• At local level: we seek to create conditions that allow people to access quality jobs that stimulate the economy. The majority of our employees are Italian or local residents, contributing to regional economic growth.
• Occupational health and safety: protecting and promoting the health and safety of our employees is our number one priority. Through training and our continuous improvement program monitored by clear KPIs, we work towards our ‘zero incident rate’ target.
• Protecting and promoting miners’ health and safety: a large part of our support to ASMs includes protecting the health and safety of the ASM miners - but also of the community surrounding the mines. We do this through funding or promoting the use of personal protection equipment and supporting the miners in having a responsible approach to the way they use/handle chemicals and hazardous substances, including mercury. We have aligned our approach to sustainability with the UN Sustainable Development Goals (SDGs), which were adopted by UN Members States to eliminate poverty, reduce inequality, and protect our planet.
• Saving water: in 2022 we will assign a part of our profits in creating a Water Saving Project.
• Responsible environmental practices in gold mining: informal ASM often creates environmental damage. Part of our support to the ASM sector focuses on supporting miners in adopting responsible environmental practices.
• Management of mercury: we approve and implement the UN Global Mercury Partnership.
• About the Climate Accion: Over the next two years, we will increase the share of renewable energy in our energy mix.
• Partnerships: A sustainable and responsible gold sector that benefits all requires strong partnerships. In the next 2 years we will asociate and working in close collaboration with mines, NGOs, civil societies, governments and the private sector to improve and monitor standards within the gold mining sector.