Clarifying Certification Language, Components & Process Estelle Levin 7th October 2008 8th Annual CASM Conference

Presentation Content A very short history of certification What is certification? Different types of certification Language and definitions Certification fundamentals How to set up a certification system Who is setting up certification for ASM?

A Very Short History of Certification! Neoliberal Structural Adjustment Deregulation Damage to vulnerable people and the commons (the environment, indigenous cultures) NGO Campaigns Consumer Pressure Alternative models of governance and assurance (e.g. certification, corporate social responsibility)

Different types of Assurance Principle modes of governance for assuring social and environmental protection: CERTIFICATION IS NOT THE ONLY OPTION and may not be the best one! IT DEPENDS ON YOUR OBJECTIVES! SYSTEM OWNER DRIVER Government Regulations Government Elections Protect political position Corporate Social & Environmental Responsibility Corporation Brand / risk management Profit Protect access to resources (land, capital, labour) Voluntary Certification Systems Multiple Stakeholders Protect the commons (environment, cultural diversity) and vulnerable populations.

Key Questions for Deciding on Certification as the right Governance Tool What are the project’s objectives? Is the goal to protect the commons or something else? How important is third party assurance? Would first or second-party suffice? Therefore…. Is certification the best way to achieve these goals? Or are there other assurance systems that would achieve these more cheaply? easily? quickly? effectively?

Level of Independence in Assurance The assessment is conducted by: First party The person or organisation that is undergoing evaluation. A first party audit includes internal audits or peer reviews. e.g. Company CSR Manager Second Party A person or body that is related to, or has an interest in the person or organisation being evaluated, such as a client or purchaser of products from the organisation. e.g. Buyer, Trade Association Third Party A person or body that is independent of the person or organisation being evaluated, and of user interests in that person or organisation. Certification and accreditation bodies most often carry out third party audits. e.g. FLO-Cert Based on ISEAL (2007, Module 1: 24)

Certification is ONE TYPE OF ASSURANCE. What is Certification? Certification is ONE TYPE OF ASSURANCE. The PURPOSE of certification of artisanal minerals or producers is to: Provide the structure and procedures to achieve specific commercial or developmental goals. Assure the consumer of some type of quality, i.e. that that certain goals have been met.  It is a PROMISE or GUARANTEE that a particular governance system has been applied and specific standards have been achieved

Different types of Certification Certification can assure 4 main things: Product / manufacturing quality Management systems Origin / chain of custody Process & Production Methods A system which assures all of these things provides total quality or ethical assurance

Type of Certification What is Certified? Useful questions Examples Product quality Naturalness or quality of manufacture What is the purity of the gold? Has the gem been heat treated? Is the diamond synthetic? Assaying gold Checking gems for irradiation Management systems How the organisation manages its risks and opportunities How the organisation is run Is there an environmental management plan? Is there an accident & emergency plan? What is the mine security strategy? How comprehensive / effective / feasible are these plans and strategies? Are they properly implemented? Are governance structures democratic and transparent? ISO14001 ISO 9001 SA8000 Origin / chain of custody Where the product comes from (origin) Where does the product come from? Who has owned and traded the product? KPCS ICGLR Process & Production Methods Social and environmental issues relating to HOW something is produced (mined, farmed, fished, processed) Are children involved in extraction or processing? What do they do? Is mercury used to extract the gold? Do women have equal access to opportunities in the mine? Fair Trade Forest Stewardship Council

Language & Definitions 1 Normative Document can be a Standard, Code of practice, Technical Specification and Regulation. Standard Provides the rules, guidelines or characteristics. Sets out the Objectives, Scope, Principles, Requirements / Criteria, and Indicators May also deal with terminology, symbols, packaging, marking or labelling requirements. Principles are the values and goals, which guide how a Standard is drafted, implemented and used for auditing purposes. These are a statement of intent. Criteria or Requirements Derived from the principles. Used to judge the organisation or product’s compliance with the standard. Audited against using pre-determined indicators.

Language & Definitions 2 Conformity Assessment Is the assessment of conformity with a standard. Encompasses verification, certification, and accreditation. Verification An assessor or inspector verifies that requirements of a standard have been fulfilled. Verification results are used to decide certification or accreditation. Certification A decision on certification is taken based on information provided by the inspector or assessor who conducted verification. Third-party attestation that fulfilment of specified requirements has been demonstrated. Accreditation Third-party attestation of a certification body’s competence to carry out specific conformity assessment tasks.

Certification Fundamentals The following need to be identified or decided upon: The Compliance Mechanism The Compliance Assessment Monitoring Verification Certification Accreditation The Assessment Cycle Labelling Financial Structure Capacity-building Traceability & supply chain integrity Cultural prerequisites for good governance Purpose / Objectives Needs Assessment / Feasibility Study Product Stakeholders Consultation Process Normative Documents Policies and Procedures Governance framework

Key objectives in how a Certification System is developed Simple! Productive (i.e. it must realise its objectives), Financially independent Financially sustainable over time Legitimate amongst key stakeholders Applicable in a variety of contexts (universalism). (or the principles may be universals but the requirements etc. can be specific to certain producers and countries )

ISEAL Certification Development Process (based on Code of Practice) Document procedures for the process (TOR) and justification for the certification system Consult on TOR Develop first draft of Standard Publish the work programme at least once every 6 months, including contact point Conduct public review (consultation) Compile comments received Re-draft Standard, work programme etc. Publish the standard Repeat 4 to 7 Other core aspects: Consensus record-keeping Regular review (every 5 years) Provide a focal point Manage how requirements are presented

Minerals Certification Initiatives CTC - Certified Trading Chains ARM - Association for Responsible Mining KPCS - Kimberley Process Certification System ICGLR - International Conference on the Great Lakes Region CRJP - Council for Responsible Jewellery Practices IRMA - Initiative for Responsible Mining Assurance Various diamonds efforts

Thank you! Estelle Levin Resource Consulting Services, Limited estellelevin@resourceglobal.co.uk +44 1223 241042