Tiffany & Co. The Silver Users Association 2007 Fall Conference Tiffany & Co. Michael Floskis Silver Users Association Fall Conference November 6-7, 2007 Washington, DC

Tiffany & Co. The Silver Users Association 2007 Fall Conference Designer, manufacturer and retailer of fine jewelry Over 167 jewelry retail stores worldwide 2006 Revenue $2.65 Billion 8,900 full time employees Tiffany & Co. Who We Are

Tiffany & Co. The Silver Users Association 2007 Fall Conference Trade of conflict diamonds Labor Rights Environmental issues –Cyanide is used by large mining operations to separate gold and silver from the ore –Large mines dump toxic water –Abandoned mines and waste Concerns with mining for the Jewelry Industry

Tiffany & Co. The Silver Users Association 2007 Fall Conference Tiffany & Co. View on Sustainability “Tiffany & Co. is committed to obtaining precious metals and gemstones in ways that are socially and environmentally responsible-it is simply the right thing to do, and our customers expect no less” -Michael J. Kowalski, Chairman & CEO, Tiffany & Co.

Tiffany & Co. The Silver Users Association 2007 Fall Conference Tiffany & Co.: Working together with the jewelry industry and non-governmental organizations Leading role in working closely with: –Producers –Other end users of precious metals –Jewelry industry groups –Interested non-governmental organizations One of the organizations that established the Framework for Responsible Mining: A Guide to Evolving Standards

Tiffany & Co. The Silver Users Association 2007 Fall Conference Tiffany & Co.: Stance on Hard Rock Mining Support reform of the General Mining Law of 1872 Support legislation to assist in cleaning up abandoned hard rock mines Believe that mining on our public lands is a privilege and must be carefully measured against alternative use, including recreation and conservation Tiffany & Co. has publicly-and-actively-opposed inappropriate mine development on environmentally and sensitive lands

Tiffany & Co. The Silver Users Association 2007 Fall Conference Tiffany & Co.: Principled Position on Burmese Gemstones Most of the finest specimens of rubies are mined in Myanmar (Burma) US government in 2003 enacted the Burmese Freedom and Democracy Act of 2003 Technically permissible to import rubies mined in Burma but cut and polished in other countries Tiffany & Co. is one of the few retailers that respects both the letter and the spirit of the legislation

Tiffany & Co. The Silver Users Association 2007 Fall Conference Tiffany & Co.: Promoting Ethical Business Conduct A founding member of the Council for Responsible Jewellery Practices Founded in 2005 Other founding members include: –Zales –Signet Group –Rolex, S.A.

Tiffany & Co. The Silver Users Association 2007 Fall Conference Tiffany & Co.: A Focus on Conserving Marine Habitats Coral has long been used in fine jewelry Tiffany & Co. since 2003 refuses to use the precious resource coral in our collections

Tiffany & Co. The Silver Users Association 2007 Fall Conference Phase I: Ensured use of only non-conflict diamonds Tiffany & Co. diamonds primarily come from three geographic regions –Canadian Arctic –Africa –Russia Created Laurelton Diamonds, a wholly owned subsidiary that provides rough diamonds and manages the worldwide supply chain Phase II: Ensure use of responsibly mined metals Tiffany & Co. Internal Actions towards Sustainability

Tiffany & Co. The Silver Users Association 2007 Fall Conference Tiffany & Co. Internal Actions towards Sustainability Ensure the use of precious metal from responsible sources: The largest portion of the gold and silver contained in Tiffany & Co. jewelry is obtained from a US copper mine which operates in a sustainable and environmentally sound manner Established a process to support the use and distribution of responsibly mined metals for the manufacturing of Tiffany & Co. products

Tiffany & Co. The Silver Users Association 2007 Fall Conference Tiffany & Co. Views on Mining New mine development should not occur on lands of high ecological or cultural value Air and water contamination should be minimized The principle of informed community participation in mine development should be embraced Basic human rights should be respected by all parties Mine operators should provide for appropriate and fiscally sound financial guarantees to cover the costs of cleaning up and closing mines Mine wastes should not be placed in rivers, streams, lakes or near shore ocean water

Tiffany & Co. The Silver Users Association 2007 Fall Conference Tiffany & Co.: Responsible Metal Source Mine Process Copper Cathode Electrolytic Cells Copper Liberators Electrolyte Circulation Filtration Autoclave Chlorination Leach Lead Recovery Gold Recovery Silver Recovery Selenium Recovery Filtration Gold Bars Selenium Powder Lead Carbonate Silver Bars

Tiffany & Co. The Silver Users Association 2007 Fall Conference Responsible Metals: Supply Chain Flow Responsibly Mined Silver & Gold Tiffany & Co. Component Vendors Finished Good Vendors Internal Manufacturing Tiffany & Co. Distribution Center Components Finished Goods Finished Goods Responsible Mine

Tiffany & Co. The Silver Users Association 2007 Fall Conference Tiffany & Co.: Silver Product Process

Tiffany & Co. The Silver Users Association 2007 Fall Conference Tiffany & Co.: Silver Products

Tiffany & Co. The Silver Users Association 2007 Fall Conference Tiffany & Co. Foundation In addition to supporting education and advancement of the arts, The Tiffany & Co. Foundation focuses on several areas of environmental interest Responsible Mining –Supports the work of a number of nongovernmental organizations dedicated to building a framework for responsible mining that meets industry needs for precious gemstones and metals while minimizing environmental impacts Coral Reef Conservation –Supports research and community-led work focused on halting the destruction of coral reefs that result from over-fishing shore development effects of global warming Land Conservation –Supports land conservation initiatives at both the national and the local level –Especially active in supporting efforts to preserve open spaces in urban settings

Tiffany & Co. The Silver Users Association 2007 Fall Conference Tiffany & Co.

The Silver Users Association 2007 Fall Conference THANK YOU Speaker: Michael Floskis Director of Finance Tiffany & Co. 300 Maple Ridge Drive Cumberland, RI (401)