Responsible sourcing of raw materials


Context

The responsible procurement of industry specific raw materials such as gold and diamonds is a priority for the Group. Historically, for the luxury goods industry as a whole, there have been issues surrounding the sourcing of gold and diamonds, as these are often mined in regions affected by conflict or instability.

Our approach

Our Model Supplier Code of Conduct sets out our position on the following issues:

Responsible gold sourcing

As far as possible, Richemont requests its suppliers to provide assurance that the gold being supplied has been mined in a way which respects human and labour rights and the environment. We continue to work with suppliers and refiners in this respect to seek to improve controls over the supply chain, where possible.

We continue to work closely with the Responsible Jewellery Council (`RJC´) to help improve the gold supply chain. In addition to this industry-wide approach, we work with our gold suppliers to strengthen the inclusion of ethical criteria at all levels of our gold sourcing supply chain. Membership of the RJC promotes a robust approach to these supply chain issues for our Maisons and other businesses in the jewellery industry, from mines to retail.

Conflict-free diamonds

Richemont is committed to ensuring that the diamonds we use in our products have not been used to fund conflict or terrorism. We adhere to responsible diamond procurement practices. Since 2003, the international trade in rough diamonds has been governed by the Kimberley Process Certification Scheme which requires all rough diamond exports and imports of participating countries to be documented, uniquely certified and approved via a government bureau, in order to put an end to the trade in conflict diamonds.

All diamonds purchased by Group companies are Kimberley Process compliant. Moreover, we require our suppliers to comply with the ‘System of Warranties’, a continuation of the Kimberley Process Certification Scheme which also applies to polished diamonds. This is a voluntary system, created by The World Diamond Council, and relies on the creation of a chain of written warranties - from original Kimberley Process certificates through to invoice - of all transactions involving the purchase and sale of diamonds, their cutting and polishing. Compliance is closely monitored.

Recognising the concerns raised by certain observers of the Kimberley Process Certification Scheme in respect of mining activities in the Marange region of Zimbabwe, Richemont’s Maisons have instructed their suppliers not to supply diamonds to them from that region.

Endangered or protected species

We require suppliers to comply with international and local legislation, e.g. the Convention on International Trade of Endangered Species (‘CITES’). Maisons are also working to achieve a better understanding of their supply chain in this area.

Leather finished products

Suppliers involved in leather products manufacturing are expected to adhere to the European Leather Association (‘COTANCE’) policies.

Other areas

Cartier, Van Cleef & Arpels and Piaget stopped purchasing precious stones which may have been mined in Myanmar (formerly Burma).

In addition, we also have policies for perfumes and cosmetic products, animal testing and product information and labelling.