The Responsible Jewellery Council Certification System

Contents About the RJC Structure of the RJC System RJC System Implementation

The Responsible Jewellery Council (RJC) The RJC is an international not-for-profit organisation established in 2005. Our mission is to reinforce consumer confidence by advancing responsible ethical, human rights, social and environmental practices, through the diamond and gold jewellery supply chain. Our focus is on the development and implementation of the RJC System, a certification system using independent third party auditing to verify that Members of the RJC conform to the RJC’s Code of Practices.

Membership The RJC currently has 90 Members, large and small, from all parts of the diamond and gold jewellery supply chain, from mine to retail. The RJC seeks to be inclusive, not exclusive. Membership opportunity is open to all businesses and associations participating in the diamond and gold jewellery supply chain and / or engaged in activities that have a potential impact on consumer confidence in diamond or gold jewellery.

Governance of the Council Officers of the Council Chairman:  Matt Runci – Jewelers of America Vice-Chairman:  John Hall – Rio Tinto Diamonds Honorary Secretary:  Mark Jenkins – Signet plc Honorary Treasurer:  James Evans Lombe – De Beers Group Committee Chairs Executive Committee:  Matt Runci – Jewelers of America Standards Committee: Rob Headley – Jewelers of America + Mick Roche – BHP Billiton Communications Committee:  John Hall – Rio Tinto Diamonds Membership Committee:  Pamela Caillens – Cartier Legal Committee:  Mark Jenkins – Signet plc People Committee:  Geoff Field - British Jewellers Association Mining Committee: Christine Charles - Newmont Finance Committee: Ruth Batson – American Gem Society Accreditation and Training Committee: Gérard Satre – The CHANEL Company Ltd Management Team The Executive functions and day-to-day management of the Council are carried out by the RJC Management Team under the direction of Michael Rae, CEO

RJC System Elements Certification is third party confirmation that fulfilment of specific requirements has been credibly demonstrated Standard Auditor accreditation Verification Certification decision

Scope of Application The RJC System is unique, as it is based on independent auditing and applies to all parts of the diamond and gold jewellery supply chain, from mine to retail. Its scope covers all facilities which are owned or controlled by Members, and actively contribute to the diamond and/or gold jewellery supply chain. The system audits management systems and performance at a company and site level. The RJC System does not seek to certify individual jewellery components.

The RJC System Under the RJC System, all Commercial Members of the Responsible Jewellery Council must be audited by accredited, third party auditors to verify that their performance and management systems conform with the Council’s Code of Practices. Members who have been independently verified as conforming to the Code of Practices will become Certified Members of the Responsible Jewellery Council.

A Community of Confidence Now more than ever, the industry must demonstrate responsible practices and protect its reputation. Certification under the RJC system will help Members to support their reputation and provide confidence to their suppliers and customers. The RJC System provides a transparent and practical mechanism for helping Members’ local operations and contractors develop the capacity to meet higher standards of ethical, social and environmental performance. Membership in the RJC also provides an opportunity to be a part of a forum for discussion and interaction with industry peers who share a commitment to advancing responsible business practices, and access to information on emerging business responsibility issues and challenges.

Credibility and Efficiency RJC certification will be transparent and highly credible, as it is based on independent auditing. The standards and auditing requirements will be familiar to a large pool of competitive auditors, which will reduce costs. Following the RJC System will allow companies now operating their own social responsibility auditing programs to consolidate under one system, avoiding unnecessary duplication and expense, and streamlining work. The System Tools and Guidance documents and training programs provide additional standardised resources to assist Members and Auditors.

RJC Certification Standard: Auditor accreditation: Verification: The RJC Code of Practices, plus additional components as required eg Mining, and associated guidance; Auditor accreditation: Accreditation of qualified and competent independent auditors who have been trained in the RJC system; Verification: Accredited auditors carry out a verification audit of a Member’s Self Assessment against the Code of Practices; Certification decision: Auditor makes formal recommendation for or against certification based on verification findings; RJC grants certification based on auditor’s recommendation.

Core System Documents Mission Standards Guidance Forms and Toolkits “To advance responsible ethical, social and environmental practices, which respect human rights, throughout the diamond and gold jewellery supply chain, from mine to retail.” 1. The RJC Principles and Code of Practices, under which Members are to be Certified. 2. Certification Handbook: overview of the System and requirements for achieving certification. 3. RJC Standards Guidance: information and advice about the Code. 4. RJC Assessment Manual: instructions for members and auditors. 5. RJC Assessment Workbook: forms and detailed questions for assessments and audits.

The Code of Practices The RJC’s Code of Practices provides the standards on which Members are audited and certified. The RJC Principles and Code of Practices were developed by the Standards Committee with consultation among the RJC’s stakeholders. They were adopted by the RJC in 2006. An update was carried out for the System release in 2008. The Code includes provisions on Business Ethics, Human Rights and Social Performance, Environmental Performance, and Management Systems. The provisions have been established through reference to national and international law, established international and industry standards, and sound business practice.

Implementation Timelines The RJC System will be delivered in three main stages: 1. Release of Core System Documents – November 2008. 2. Completion of the Mining Supplement – Quarter 2 2009. 3. Accreditation of Auditors – Quarter 2 2009. The RJC System is expected to become fully operational in the 3rd Quarter of 2009, once independent auditors have been trained and audit firms accredited. Current RJC Members are required to be certified by December 2010. Companies that join the RJC after 31st December 2008 will need to undergo independent verification within two years of becoming Members.

Activities and Plans Activity Target Analysis of technical equivalence with overlapping certification standards Guidance released Q1 2009 Auditor Training and Accreditation First Accredited Auditors available by Q2 2009 Member Training Training roll-out from Q2 2009 Mining Supplement to the Code of Practices Incorporated by Q2 2009 Additional tools for small businesses and Facilities with multiple certification standards Ongoing release during 2009 Gem Laboratory Supplement to the Code of Practices Incorporated by 2010

Auditor Accreditation An auditor accreditation system will be developed by the RJC during the first half of 2009. Prospective auditors will need to meet the selection criteria for competence and undertake additional training on the RJC system to become accredited. A list of Accredited Auditors will be publicly available. Auditors accredited under the requirements of ISO/IEC 17021, ISO/IEC Guide 65 (or equivalent) can register their interest in becoming accredited. Auditors will still be required to document their credentials in their Verification Reports and confirm that they have no conflict of interest in carrying out verification for that Member.

Implementing the System – What Members will need to do Become familiar with the core system documents. Participate in RJC System training programs as they become available. Define their Certification Scope - those parts of their business which actively contribute to the diamond and/or gold jewellery supply chain. Conduct a Self Assessment of their organisation and facilities. This covers the same questions that will be addressed by the auditor. Address any non-conformances. Engage an Accredited Auditor. When ready, submit their Self Assessment to their chosen auditor/s and request a Verification Assessment. Prepare and implement a Corrective Action Plan to address any non-conformances.

- What the Auditors will do Conduct a desktop review of the Member’s Self Assessment and related information. Define the Verification Scope: Determine which provisions of the Code of Practices will be verified at which Facilities. Take into account risk and relevance. Conduct on-site review of the selected provisions at selected Facilities, as defined in the Verification Scope. Monitor the Member’s progress on implementing any Corrective Action Plans. Submit verification reports: Detailed report to Member. Summary and recommendation to the RJC Management Team.

- What the RJC will do The RJC Management Team grants certification to a Member based on the auditor’s recommendation. The Management Team will confirm the Member is in good standing and will review the auditor’s report to check: Auditors are accredited and competent. All major non-conformances have been corrected, or are subject to a one year corrective plan verified by the auditor. Document the terms of the Certification (names, locations, dates etc.) Issue formal documentation, including a unique Certification identification, conditions for use of the RJC logo and related intellectual property; Record the Member’s certification status on the RJC website.

Non-conformances and corrective action Summary of obligations based on the outcomes of the Auditor’s Verification Assessment Corrective Action Plan required to address any Minor Non-conformances Certification valid for 3 years Conformance, or Minor Non-Conformance Auditor cannot recommend certification until all major non-conformances have been addressed or captured in an approved Corrective Action Plan Certification valid for 1 year Major Non-Conformance Must be immediately reported to the RJC Management Team Disciplinary proceedings will commence Critical Breach

Check and balances Quality control Complaints mechanism Sanctions Standardised forms for assessing and verifying conformance; Guidance on standards and certification; Formal training and accreditation of auditors; Peer reviews of auditing quality; Member training and support. Complaints mechanism RJC will investigate and resolve complaints relating to certification assessments and outcomes. Sanctions Disciplinary proceedings against Members or auditors will be triggered by actions or omissions that affect the integrity of the RJC system.

The Responsible Jewellery Council The Responsible Jewellery Council is the trading name of the Council for Responsible Jewellery Practices Ltd. Council for Responsible Jewellery Practices Ltd, 20-22 Bedford Row, London, WC1R 4JS, United Kingdom. The Council for Responsible Jewellery Practices Ltd is registered in England and Wales with company number 05449042. Website: www.responsiblejewellery.com Email: info@responsiblejewellery.com

Backup Slides

Code of Practices 2008 Business Ethics Human Rights and Social Performance Environmental Performance Management Systems 1.1 Bribery and Facilitation Payments 2.1 Human Rights 3.1 Environmental Protection 4.1 Legal Compliance 1.2 Money Laundering and Finance of Terrorism 2.2 Child Labour and Young Persons 3.2 Hazardous Substances 4.2 Policy 1.3 Kimberley Process 2.3 Forced Labour 3.3 Waste and Emissions 4.3 Business Partners 1.4 Product Security 2.4 Freedom of Association and Collective Bargaining 3.4 Use of Energy and Natural Resources 1.5 Product Integrity 2.5 Discrimination 2.6 Health and Safety 2.7 Discipline and Grievance Procedures 2.8 Working Hours 2.9 Remuneration 2.10 General Employment Terms 2.11 Community Development 2.12 Use of Security Personnel

Founding Members of the RJC ABN AMRO BHP Billiton Diamonds Cartier (part of Richemont) World Jewellery Confederation Diamond Trading Company (part of De Beers Group) Diarough Jewelers of America National Association of Goldsmiths (UK) Newmont Mining Rio Tinto Rosy Blue Signet Group Tiffany & Co. Zale Corporation.