Supply Chain
Management approach
The Group acknowledges the complexities involved in addressing material topics related to the supply chain. In response, Richemont adopts a proactive and diligent approach that applies to material topics, such as conflict minerals, human rights, labour standards, as well as animal welfare. With a risk-based approach in mind, the Group has enhanced its management systems tailored to risk assessment and due diligence processes for the supply chains of, amongst others, gold, diamonds, coloured gemstones, leather, and watch components, building on the identified material topics.
Richemont is consolidating its practices and streamlining its supply chain governance, assessment methodologies and actions across its Maisons. The Supplier Code of Conduct (SCoC), the Raw Materials Sourcing Policy and the Group Procurement Policy, amongst others, provide the foundation of the Group’s responsible sourcing approach.
For more details on Richemont's management approach to influencing its supply chains, click here.
Policies & standards
Richemont’s SCoC outlines the requirements that suppliers must comply with and is based on the International Labour Organization (ILO) conventions, the Universal Declaration of Human Rights, and the Organisation for Economic Co-operation and Development (OECD) Guidelines.
Business partners must adhere to certification systems such as those of the Responsible Jewellery Council (RJC), the Leather Working Group (LWG), ISO 14001, ISO 45001, and SA8000. In addition, supplier audits based on the Sedex Members Ethical Trade Audit (SMETA) methodology are conducted. An important pillar in the Group’s strategy is to promote the RJC Code of Practices (CoP) and Chain of Custody (CoC) certifications across the relevant supply chains.
Governance & accountability
The Group Director of Operations provides updates to the Senior Executive Committee (SEC) on supply chain matters on a regular basis. The Responsible Sourcing team is in charge of deploying policies at the Group level, working across all the raw material supply chains in its scope. Core raw material supply chains are managed by Richemont’s Maisons and, except for textiles and perfumes, coordinated and overseen by dedicated centres of excellence at the Group level, to ensure that best practices are followed in sourcing and procurement.
In FY24, the Influencing Supply Chain Committee was established to prioritise and oversee the implementation of ESG programmes across the supply chain.
Risk management & due diligence
Richemont performs due diligence following a risk-based approach, taking into account the nature of the relationship with its suppliers corresponding to their risk profile. Due diligence conducted on the direct procurement of raw materials follows the methodology recommended by the OECD and incorporates the requirements of the appropriate standard setting organisations (RJC, SMETA, ISO), including a specific focus on child labour and conflict minerals.
Richemont uses ESG screening tools to benefit from recognised international aggregated data. Procurement categories experts review key spend categories to evaluate the inherent risks associated with each indirect procurement activity.
Overall, the risk management approach in indirect procurement is driven by a rigorous methodology that leverages a blend of recognised international standards, ESG screening tools, and expert evaluation.
Reports & Policies
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Report
Non-Financial Report 2024
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Report
Basis of Preparation 2024
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Document
Executive Summary 2024
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Document
Standards of business conduct
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Document
Supplier code of conduct
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Policy
Raw materials sourcing policy