Council for Responsible Jewellery Practices, Ltd. www.responsiblejewellery.com info@responsiblejewellery.com November 2006

The Council’s Mission To promote responsible Ethical, Social and Environmental practices throughout the diamond and gold jewellery supply chain, from mine to retail. What makes it different from other initiatives: It is the whole of the diamond and gold jewellery supply chain, from mine to retail Global effort Transparent and inclusive, engaging with stakeholders from all society on a regular basis Not-for-profit organisation Coordinated approach to addressing ethical, social and environmental challenges will: drive continuous improvement throughout the jewellery industry maintain and promote consumer confidence enable the industry to work together to improve standards and practices reduce duplication of efforts. Do this through application at Member organisations of a Responsible Business Framework, currently being developed in consultation with key stakeholders

Spot the difference Spot the differences

Conflict… Making it Work November 2005 "Why the Kimberley Process Must Do More to Stop Conflict Diamonds" Déjà Vu October 2004 Broken Vows March 2004 "Exposing the "Loupe" Holes in the Diamond Industry's Efforts" For a Few Dollars More April 2003 "Diamond Industry Still Failing to Deliver on Promises" Conflict Diamonds May 2000 "How Al Quaeda Moved Into the Diamond Trade"

10 February 2006 Conflict…

Jewelry industry loses its sparkle, as children continue to cut and polish! (…) India, the world’s biggest diamond and gemstone cutting centre polishes 70% of world’s diamond yield. NGOs estimate that children account for 10% of diamond polishers. Financial Times, June 2002 … and child labour

Integrity issues 21 December 2005 8 March 2006

February 2006

2006 Valentine's day campaign in the UK

Luxury sector where reputation of product is critical Impact on industry Luxury sector where reputation of product is critical Increased reputation risk impacting the public’s trust (product integrity, business integrity and consumer confidence) Increased regulatory demands by governments (e.g. AML) Retail jewellers are the face of accountability (product integrity, business integrity and consumer confidence) Increased regulatory demands by governments (e.g. AML) Retail jewellers are the face of accountability for business practices of the companies throughout the entire supply chain Individual companies have taken proactive steps – more will follow

Who are we? Not-for-profit organisation Coordinated approach to addressing ethical, social and environmental challenges will: drive continuous improvement throughout the jewellery industry maintain and promote consumer confidence enable the industry to work together to improve standards and practices reduce duplication of efforts. Do this through application at Member organisations of a Responsible Business Framework, currently being developed in consultation with key stakeholders

From mine to retail: The axes of risk COMMERCIAL MEMBERS International mining Refining Gold Small scale mining Smelting Semi- finished product manufacturing Finished product manufacturing Retail International mining Rough trading Polished trading Trading Whole- sale Diamonds Small scale mining Preparing Cutting Polishing Sideways and up and down, one of the premises is that we need to drive change throughout he supply chain, it is not just big players, it is not just US retailers, it is everyone ! From mine to retail but also from the big guy to the small guy….

Key Challenges Supply chain characteristics Individual sector cultures Establishing a pattern of cooperation among competitors Industry politics Building critical mass while managing anti-trust risk Managing stakeholder engagement Multiplicity of competing codes and standards Current lack of agreed standards and verification as pertains to mining The temptation of making promises you may be unable to fulfill Complacency Lack of ownership Etc.! Manage reputational risk Common baseline standard drawing on existing programs and national laws Flexible risk based application to meet individual business requirements Credible implementation process Sample monitoring of Member’s own facilities and business partners Continuous improvement