2008 New York - Member Forum Council for Responsible Jewellery Practices, Ltd. Overview of CRJP System Design Fiona Solomon, Director – Standards Development

Design of the CRJP System Introduction to the CRJP System Roles of CRJP, Members and Auditors Steps to certification Checks and balances Proposed timelines for system delivery to Members

Introduction to the CRJP system CRJP Certification of Members –Certification is third party confirmation that fulfilment of specific requirements has been credibly demonstrated. Standard Auditor accreditation Verification Certification decision

CRJP Certification Standard: –The CRJP Code of Practices, plus additional modules as required eg Mining; Auditor accreditation: –Accreditation of qualified and competent independent auditors who have been trained in the CRJP 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; –CRJP grants certification based on auditor’s recommendation.

The Code of Practices – proposed revision 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 Substances4.2 Policy 1.3 Kimberley Process2.3 Forced Labour3.3 Waste and Emissions4.3 Business Partners 1.4 Product and Materials Security 2.4 Freedom of Association and Collective Bargaining 3.4 Use of Energy and Natural Resources 1.5 Product Integrity2.5 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

Scope of application Designed to apply to all sectors of the diamond and/or gold jewellery supply chain, from mining through to retail. Condition of CRJP membership that Members seek certification covering all their relevant Facilities: –All Facilities which are owned or controlled by Members, and actively contribute to the diamond and/or gold jewellery supply chain; Proposed timeline: Current Members to undergo independent third party auditing by 31 December 2010.

Key roles CRJP MembersAuditors CRJP Certification

Role of CRJP Update the certification system to keep it current and relevant; Support the quality, integrity and credibility of assessments under the system; Accredit independent third party auditors; Certify Members with business practices conforming to the Code of Practices; Publicly report on the aggregate progress of implementing the certification system; Engage with industry and other stakeholders to build awareness of the CRJP value proposition.

Role of Members Operate your business in accordance with the certification system; Self assess your performance against the Code of Practices; Engage accredited auditor(s) to carry out verification; Implement corrective action, if necessary, to achieve conformance; Promote responsible business practices in the diamond and gold jewellery supply chain.

Role of Auditors Carry out verification of a Member’s performance against the Code of Practices; Identify non-conformances which require corrective action and carrying out follow-up reviews of progress against milestones, if required; Prepare Verification Reports to the Member and the CRJP, including a recommendation on whether Certification should be granted.

Summary of key roles The CRJP is responsible for operating and updating the certification system; Members are responsible for operating their business in conformance with the Code of Practices; Auditors are responsible for verifying whether Member’s business practices are in conformance and making a recommendation on certification.

Steps to certification Self Assessment Verification Assessment Grant Certification By MembersBy AuditorsBy CRJP

Step 1 - Self Assessment by Members 1.Define the parts of your business which actively contribute to the diamond and/or gold jewellery supply chain – the Certification Scope. 2.Self assess your performance against the Code of Practices. Internal audit. Assemble necessary information to enable auditor/s to work efficiently and effectively. Identify and address any areas of non-conformance before the auditor/s arrive. 3.When ready, appoint accredited auditor/s and submit your Self Assessment to them.

Step 2 – Verification Assessment by Auditors 1.Desktop review of the Member’s Self Assessment and related information. 2.Define the Verification Scope: Which provisions of the Code of Practices will be verified at which Facilities. Takes account of risk and relevance using available information eg legislative frameworks and existing certifications. 3.On-site review of the selected provisions at selected Facilities, as defined in the Verification Scope. 4.Verification reports: To Member (detailed); To CRJP (summary and recommendation).

Step 3 – Grant Certification 1.The CRJP Management is responsible for granting certification to Members, based on the auditor’s recommendation. 2.CRJP Management Team will review 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. 3.Certified Members will be issued with formal documentation on their certification status, benefits and conditions of use. 4.Certification details will be listed on the CRJP website.

Checks and balances Quality control –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 –CRJP 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 CRJP system.

Resources and tools to help you Mission Standards Procedures Guidance and Toolkits Core system documents will be delivered first to get you started. More tailored materials will be developed to support particular groups or issues.

Proposed timelines – staged system delivery Stage 1 – Core system documents – Oct 08 –Certification Handbook –Code of Practices –Introduction to the Code of Practices (Standards guidance) –Self Assessment workbook –Assessment Manual (for Members and Auditors) Stage 2 – Mining Supplement – Feb 09 –Additional component applicable to Mining Members. –Will be incorporated into Code of Practices and Assessment tools. –Standards development process to include stakeholder consultation. Stage 3 – Accredited Auditors – Mar 09 –Establish selection criteria and assessment method. –Training for unique aspects of CRJP system. –List of CRJP accredited auditors available to Members – will grow with time.