Jewellery Ethics Committee UK Welcomes Government Initiative on Transparent Supply Chains
The British Government announced this week that Business Minister Jenny Willott will work with the British Retail Consortium (BRC) to produce a number of recommendations for UK retailers to address human rights abuses in their supply chains.
Later this year The BRC will work with its members and key stakeholders to produce a publication highlighting good practise and recommendations for companies on ethical accreditation and auditing.
The jewellery industry has been making significant progress in improving ethical practice over the past 10 years, particularly in the gold supply chain.
In regards to large scale mining, the World Gold Council has produced a Conflict Free standard for mines, whilst other measures to prevent the sale of gold from financing conflict have been created for refiners and smelters of gold, covering gold which is used to produce jewellery and electronics.
Similarly, for diamonds, The Kimberly Process was designed to eradicate the financing of conflict through rough diamond sales. However, conflict is only one part of the problem for jewellers. Human rights abuses such as slave labour, child labour and issues associated with poverty are still prevalent in some sectors of the industry. Some of the most vulnerable people in the supply chain work in the small mines of developing countries and in the workshops which polish diamonds and gems or manufacture jewellery.
The introduction of some initiatives, such as Fairtrade and Fairmined Gold in 2011 have truly transformed the way in which the industry can access gold from small scale miners, who, under both schemes, benefit from a fair pricing structure guaranteed at minimum of 95% of LBMA fix price, with an additional premium on every gram of gold sold. The premium is then invested by the miners into community development. To date, two mining communities in Peru have benefited from local gold mines becoming Fairtrade certified, with premiums being used to improve health care and education. Two more are on track for certification in Bolivia and Peru later this year whilst policy work continues with small scale miners on child labour and mercury eradication in other sites in South America. Nine pilot sites have been identified in East Africa, impacting over 3000 miners and their communities.
Greg Valerio, of Fairtrade International describes the key benefits of the Fairtrade system: “Fairtrade Gold offers the UK jewellery trade a verifiable and trusted way of improving ethical performance. It is the country’s only consumer certification stamp for gold and gives the consumer a guarantee that what they are buying can be traced to a certified Fairtrade mining group. It is truly the best gold story in the world”.
Over the past 5 years The Jewellery Ethics Committee UK (JEC-UK) has been working with companies like Fairtrade International to ensure UK retailers are aware of the issues within their own supply chains and have practical advice on how to resolve these issues. Comprised of the three main trade associations representing retailers, manufactures and gem and diamond professionals in the UK: the National Association of Goldsmiths (NAG), the British Jewellers’ Association (BJA) and the Gemmological Association of Great Britain (Gem-A), the JEC-UK has worked with jewellers, manufacturers and producers in and around the UK to provide 10 recommendations to improve transparency in the gold supply chain. As they are now working on a similar Diamond Paper for publication in 2014, news of the Business Minister’s announcement and the BRC’s subsequent report has been widely welcomed by all parties involved in the initiative.
Simon Rainer CEO of BJA said “I am extremely pleased that BRC and HMG have chosen to highlight the issues prevalent in retail supply chains. I am even more pleased that the BJA, NAG and Gem-A recognised these issues several years ago and have been working earnestly, with all stakeholders, to create and effect change for the betterment of the UK jewellery industry”
Michael Rawlinson CEO of the National Association of Goldsmiths said: “Retailers should be in a position to answer consumers questions regarding the source of their jewellery and the industry has been working for several years on initiatives that will enable greater transparency. We will be delighted to help the BRC in producing their report with information relating to initiatives in the jewellery industry”.
James Riley, CEO of Gem-A welcomes the government move, saying: “This is great news and reinforces the stance of JEC-UK. It shows exactly why the 3 associations are working so closely together on these issues- so that we can assist our members in running ever more responsible businesses. At Gem-A we are currently working in partnership with The World Jewellery Confederation (CIBJO) and The World Jewellery Confedertation Education Foundation (WJCEF) on a chain of custody solution which is accessible to SMEs and will help them tackle many of these issues.”
Chairman of JEC-UK Vivien Johnston commented “We’ve been developing a series of steps for each sector of the industry to apply to their supply chains. Ultimately, we see the need for a credible assurance system for small businesses to demonstrate their ethical behaviour. We also want to make consumers aware of the commitments companies have undertaken to eradicate human rights abuses, so they are in the position to make an informed choice about the ethical provenance of the jewellery they purchase”.
