A PRACTICAL WAY TO INTRODUCE A WORLDWIDE JEWELLERY

A PRACTICAL WAY TO INTRODUCE A WORLDWIDE JEWELLERY ETHCIAL TRADE SYSTEM. Andrew Cody & Dr Michael Hopkins Rapaport Fair Trade Conference

• Labour issues Ø Ø Human rights Youth Wages & Conditions Safety conditions • Environmental issues Ø Ø Chemical pollution Landscape scarring Trees Wildlife • Who receives the returns Ø Ø Political Terrorists Money Laundering Smuggling • Treatments Ø Disclosure Ø Safety issues

Mining Gold Platinu m Supplier s of Materials Gemstone s Metals Silver Diamond Others Coloure d Organic Hundreds of Countries with a myriad of cultures and standards. Manufacturing Refining Jewellery Suppliers Laboratorie s Wholesale & Distribution Retailer CONSUME R Treatments of metals/ gemstones Cutting/ Polishing of Gemstones Watch Manufactur e conditions

? What makes a mining operation Ethical? JEWELLERY SUPPLY CHAIN Mining First Tier Metals Gold Platinum Suppliers of Materials Gemstones Silver Others Diamond Coloured Organic Large Scale Miners-Small Scale Miners Labour issues Ø Ø Ø Human Rights Youth Wages & Conditions Safety considerations Community Benefits Community displacements Environmental issues Ø Chemical pollution Ø Landscape scarring Ø Trees Ø Wildlife Who receives the returns Ø Political? Ø Terrorists? Ø Smuggling Ø Money laundering Treatments Ø Ø Disclosure Safety issues-irradiation Permancy of treatment Environmental impact

Gold Claims around the world

Metal Refining Process

Global Diamond Deposits

Top 39 Gemstone Supplier Countries • Afghanistan & Tajikistan • Argentina • Australia • Bolivia • Brazil • Cambodia • • • Canada China Colombia Congo Dominican Republic Ethiopia & Somalia • • • Guatemala Honduras India Iran Kenya Laos • • • Madagascar Malawi Mexico Mozambique Myanmar Namibia • • • Nigeria Pakistan Peru Russia South Africa Sri Lanka • • • Tanzania Thailand Turkey Uruguay USA Vietnam • Zambia

Pearl Farm Pearl Harvest

Ethical Trade Issues Facing First Tier - Mining • Labour issues Ø Ø Ø Human rights Youth Wages & Conditions Safety conditions Displacement of communities • Environmental issues Ø Ø Chemical pollution Landscape scarring Trees Wildlife • Who receives the returns Ø Ø Political Terrorists Money Laundering Smuggling • Treatments Ø Disclosure Ø Safety issues

Ø Ø Ø Human rights Youth Wages & Conditions Safety conditions Displacement of communities

Child Labour in Mining Ø Ø Ø Human rights Youth Wages & Conditions Safety conditions Displacement of communities

Ø Ø Ø Human rights Youth Wages & Conditions Safety conditions Displacement of communities

Ø Ø Ø Human rights Youth Wages & Conditions Safety conditions Displacement of communities

Ø Ø Ø Human rights Youth Wages & Conditions Safety conditions Displacement of communities

Ø Ø Chemical pollution Landscape scarring Trees Wildlife

Environmental Impacts Ø Ø Chemical pollution Landscape scarring Trees Wildlife

Ø Ø Chemical pollution Landscape scarring Trees Wildlife

Ø Ø Political Terrorists Money Laundering Smuggling

Ø Ø Political Terrorists Money Laundering Smuggling

Ø Ø Political Terrorists Money Laundering Smuggling

Ø Ø Political Terrorists Money Laundering Smuggling

Ø Disclosure Ø Safety issues

203 Sovereign States Different Cultures Different Standards

Other Problems Associated with Implementing Ethical Trade Each of the previously mentioned issues will vary according to : • Different Products- Gemstones & Metals • Different Supplier Countries • Different Cultures • Different Economic Structures • Different Labour Standards

Large miners will be easier to regulate

What about the thousands of small miners?

I can’t see this man being regulated easily!

MANUFACTURING CHAIN 2 nd Tier Refining • Environment • Treatments • Safety Issues Manufacturing Jewellery • Labour Conditions* • Chemicals • Treatment disclosures* • Accurate Descriptions Suppliers Laboratories Treatments of metals/ gemstones • Full Disclosure • Harmonisation • Disclosure • Safety Cutting/ Polishing of Gemstones Watch Manufacture conditions

THIRD & FOURTH TIERS Third Tier Wholesale & Distribution • Integrity-Deal only with Ethically Trading miners & manufacturers • Guarantees • Full Disclosure of treatments Fourth Tier Retaile r • Integrity • Honesty • Buys from a source he believes is ethical • Guarantees • Discloses Treatments

Responsible Jewellery Council Members Trade Associations • The American Gem Society • British Jewellers Association • Jewellers of America • Manufacturing Jewelers and Suppliers of America Inc. • National Mining Association • The National Association of Goldsmiths • World Gold Council Service Industries (inc. financial institutions) • Int. Diamond and Jewellery Group ABNAMRO • The Assay Office Mining • Anglo. Gold Ashanti • • • • Arslanian Freres NV Bonas & Co. Ltd Dalumi Diamonds Diarough N. V. Dimexon Diamonds HRA Investments Ltd I. Hennig & Co. Ltd Lazare Kaplan International Inc. Overseas Dimaonds NV / Isee 2 Rosy Blue N. V. Rothschild Diamonds Ltd Sima Diamond NV Steinmetz Suashish Diamonds

Responsible Jewellery Council Members Gold Refining Hedging or Trading • Argor-Heraeus SA • • Metalor Tchnologies SA PAMP SA PX Precinox SA Valcambi SA Jewellery Manufacturing or Wholesale • AR & AR Jewellery Inc • • • Aurafin LLC Baume & Mercier Boite D’Or Gioielli S. R. L. Carrera y Carrera C&J Jewelry Cendres+M&eacute: taux SA Christian Bernard Colormasters Gem Corp Cristofol Paris Jewellery Manufacturing or Wholesale • DN Gems Corp • Gabriel & Co • Jaeger-Le. Coultre • J. B. Jewelry • Leo Schachter Diamonds LLC • Libman & Company Ltd • Kristall Inc. • Regal Imports Ltd • Robertso Coin • Stubbs and Co

Responsible Jewellery Council Members Retail • Argos Ltd • Ben Bridge Jeweler • Borsheims • Boucheron • Brown Goldsmiths • Bulgari S. p. A • Cartier • Chanel Horlogerie/Joaillerie • Day’s Jewellery • Element Jewellery • Gomez & Molina Joyeros • Goodmans Jewelers Inc • Hamilton Jewellers • Harriet Kelsall Jewellery Design Ltd • Harry Winston • H. Cunningham Fine Jewelry Inc. • Helzberg Diamonds • Ice cool. co. uk • JCPenney • Jewellery By Varouj Inc • Larter and Sons • Leber Jeweler Inc. • Lux Bond & Green • Marissa D. Harvey • Montblanc • Moet Hennessy – Louis Vuitton • Nicholas James • Piaget • Precious Metals • Reis-Nichols Inc. • Signet Group plc. • Simms II Jewelers • Tiffany & Co. • Transparence S. A. • Van Cleef & Arpels • White. Flash. com • Zale Corporation Current membership is approximately 90 organisations.

But there are 100’s of thousands of businesses involved…

? Are these people trading ethically?

Mining Rules & Regulations are extremely complex. Gold Platinu m Supplier s of Materials Gemstone s Metals Silver Diamond Others Coloure d Organic Manufacturing Rules & Regulations are complex. Rules & Regulations are moderate and rules for Ethical Trade already exist. Refining Jewellery Suppliers Laboratorie s Wholesale & Distribution Rules & Regulations are simple and rules for Ethical Trade already exist. Retailer WANTS ETHICAL TRADE! CONSUME R Treatments of metals/ gemstones Cutting/ Polishing of Gemstones Watch Manufactur e conditions

? Are they ethical traders?

1200 Members If one third of members agreed to join CIBJO’s Ethical Trade System, then it would raise $200, 000 revenue annually if the cost of joining was $500 US per business.

Austria France Netherlands Spain Argentina Germany New Zealand Sweden Australia Greece Norway Switzerland Brazil Hong Kong Portugal Thailand Belgium India Russia Turkey Canada Israel Saudi Arabia UAE China Italy Singapore United Kingdom Egypt Japan South Africa United States Finland Mexico South Korea

The local organisation can administer the running of the Ethical Trade system within its country or region. CIBJO-world jewllery confederation, can oversee the local approved organisations and also arrange third party verification through responsible auditors.

Codes of Ethics contain rules by which members must abide. s A thic JA f E o de o C Examples of Industry Codes of Ethics at work Ø International Colored Gemstone Association s TA thic J TG of E de Co Ø Thai Gem & Jewellery Traders Association on iati soc As s d n hic t mo Dia Of E d e e r d o o l C Co A AGT thics of E ode C Ø Gemological Institute of America Ø Gemmological Association of Australia Ø Jewellers Association of Australia Ø Japan Jewellery Association Ø American Gem Trade Association ICA Ethics Code of Ø The Gemmological Association of Great Britain Ø British Jewellers Association Japan Jewellers Associ ation Code of Ethics Ø ETC

Don’t set the bar too high initially.

? ETHICAL TRADER RETAILER CAT 3 2009 ETHICAL TRADER MINER CAT 3 2009 ETHICAL TRADER MANUFACTURER CAT 3 2009

ETHICAL TRADER MANUFACTURER CAT 3 2009 Entry or Benchmark level

ETHICAL TRADER MINER CAT 3 2009 Awarded to members whose standards are high.

ETHICAL TRADER RETAILER CAT 3 2009 Highest level- may require donations to a charitable fund

Mining Rules & Regulations are extremely complex. Gold Platinu m Supplier s of Materials Gemstone s Metals Silver Diamond Others Coloure d Organic Manufacturing Rules & Regulations are complex. Refining Suppliers Laboratorie s Treatments of metals/ gemstones Cutting/ Polishing of Gemstones Watch Manufactur e conditions Wholesale & Distribution Rules & Regulations are moderate and rules for Ethical Trade already exist. Rules & Regulations are simple and rules for Ethical Trade already exist. WANTS ETHICAL TRADE! Jewellery Retailer $ CONSUME R $

Mining Rules & Regulations are extremely complex. Gold Platinu m Supplier s of Materials Gemstone s Metals Silver Diamond Others Coloure d Organic Manufacturing Rules & Regulations are complex. Rules & Regulations are moderate and rules for Ethical Trade already exist. Refining Jewellery Suppliers Laboratorie s Wholesale & Distribution Rules & Regulations are simple and rules for Ethical Trade already exist. Retailer WANTS ETHICAL TRADE! CONSUME R Treatments of metals/ gemstones Cutting/ Polishing of Gemstones Watch Manufactur e conditions

The people who suffer on the mines can’t afford to wait too long -let’s work together to try and make Ethical Trade a reality.