The international jewellery industry is to establish the first global responsibility guidelines for its products.
Influential businesses in the gold and diamond market have begun a
six-month public consultation to establish relevant social,
environmental and ethical principles. The consultation, which is aimed
at engaging consumers, non-profit groups and other interested parties,
is being overseen by the newly formed Council for Responsible Jewellery
Practices.
‘The council was set up primarily to provide consumer confidence,’ said
John Hall, Rio Tinto’s corporate relations manager. ‘The initiative
will enable a jeweller on the high street to give a level of assurance
about how the jewels they are selling have been produced.’
Hall added that the establishment of the council is also a response to
sustained criticism of the jewellery industry from pressure groups. In
recent years human rights organizations have been particularly critical
of the alleged link between diamond mining and civil conflicts in
Africa. Retailers have become more sensitive to consumer opinion, but
the companies that supply them are also facing considerable pressure
from campaigners.
Other industry issues likely to be considered under the CRJP principles
include workers’ rights, the impact of sourcing on indigenous groups
and the use of raw materials. The principles will initially relate only
to gold and diamonds. They will cover silver, rubies and other precious
stones and metals at a later date.
Once the CRJP has agreed core standards for the industry, participating
companies will have to monitor and report their performance using the
framework. There will be third party verification, but the details are
still being worked out. The CRJP is understood to be looking at
monitoring models such as the Forest Stewardship Council.
Also undecided is the question of whether member companies will be
obliged to publish all or part of their performance data. However,
members will have to report annually to the CRJP on details of their efforts to conform to the principles.
The CRJP, which is registered in the UK, at present has 14 members
drawn from the diamond and gold industries. The founders include the
jewellers Cartier and Tiffany and the multinational extractive
companies Newmont Mining, Rio Tinto and BHP Billiton.
The CRJP intends to design a certification logo for use by its members
so that consumers can identify approved products. The companies will
run advertising campaigns to explain how the scheme works.
The council is expected to become fully functional next July. The board
is hiring a chief executive, forming a secretariat and finding a
headquarters.
Costs are not being made public, but prospective members are asked to
pay a £20,000 provisional fee deductible from future membership fees.
Members do not expect costs to be passed on to the consumer.
Gold jewellery sales in the US alone stood at $17billion (£9.5bn) in 2004, according to World Gold Council figures.
