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Sparkling Jewels, Opaque Supply Chains Jewelry Companies, Changing Sourcing Practices, and Covid-19

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Sparkling Jewels, Opaque Supply Chains Jewelry Companies, Changing Sourcing Practices, and Covid-19 HUMAN SPARKLING JEWELS, RIGHTS OPAQUE SUPPLY CHAINS WATCH Jewelry Companies, Changing Sourcing Practices, and Covid-19 Sparkling Jewels, Opaque Supply Chains Jewelry Companies, Changing Sourcing Practices, and Covid-19 Copyright © 2020 Human Rights Watch All rights reserved. Printed in the United States of America ISBN: 978-1-62313-879-0 Cover design by Rafael Jimenez Human Rights Watch defends the rights of people worldwide. We scrupulously investigate abuses, expose the facts widely, and pressure those with power to respect rights and secure justice. Human Rights Watch is an independent, international organization that works as part of a vibrant movement to uphold human dignity and advance the cause of human rights for all. Human Rights Watch is an international organization with staff in more than 40 countries, and offices in Amsterdam, Beirut, Berlin, Brussels, Chicago, Geneva, Goma, Johannesburg, London, Los Angeles, Moscow, Nairobi, New York, Paris, San Francisco, Sydney, Tokyo, Toronto, Tunis, Washington DC, and Zurich. For more information, please visit our website: http://www.hrw.org NOVEMBER 2020 ISBN: 978-1-62313-879-0 Sparkling Jewels, Opaque Supply Chains Jewelry Companies, Changing Sourcing Practices, and Covid-19 Summary ......................................................................................................................... 1 I. Abuses in Mining and the Impact of Covid-19............................................................... 20 A Legacy of Human Rights Abuses in Gold and Diamond Mining ............................................. 20 Venezuela: Brutal Abuses in Gold Mines Taint Gold Supply Chain ........................................... 23 Zimbabwe: Diamonds Still Certified Despite Abuses ............................................................... 24 Impact of the Covid-19 Pandemic on Mine Workers and Mining Communities ......................... 26 II. International Standards ............................................................................................. 31 III. Jewelry Industry and the Pandemic: Threats and Opportunities ................................. 34 Impact of Covid-19 on Jewelry Brands ...................................................................................... 34 Consumer focus on transparent and ethical business ............................................................. 37 Traceability Technologies ....................................................................................................... 38 Laser Technology ............................................................................................................. 38 Blockchain ....................................................................................................................... 39 Concerns about traceability technology ........................................................................... 40 IV. Industry Standards for Responsible Sourcing: Fig Leaf or Assurance? ........................ 41 Standards of the Responsible Jewellery Council ...................................................................... 42 Standards for the Diamond Sector .......................................................................................... 45 Standards for the Gold Sector ................................................................................................. 47 A Standard for Industrial Mining: The Initiative for Responsible Mining Assurance .................. 50 Need for Mandatory Supply Chain Standards .......................................................................... 51 V. Company Rankings and Performance ......................................................................... 53 Methodology .......................................................................................................................... 53 Summary of findings ............................................................................................................... 55 How Diamond Mining Companies’ Lack of Traceability Impacts the Jewelry Supply Chain ........ 59 Jewelry company profiles ........................................................................................................ 61 Boodles (UK) .................................................................................................................... 61 Bulgari (Italy) ................................................................................................................... 63 Cartier (Switzerland) ....................................................................................................... 64 Chopard (Switzerland) ..................................................................................................... 66 Chow Tai Fook (Hong Kong) .............................................................................................. 67 Christ (Germany) ............................................................................................................. 69 Harry Winston (United States) .......................................................................................... 70 Kalyan (India) ................................................................................................................... 71 Mikomoto (Japan) ............................................................................................................ 71 Pandora (Denmark) .......................................................................................................... 72 Rolex (Switzerland) .......................................................................................................... 73 Signet (United States) ...................................................................................................... 74 Tanishq (India) ................................................................................................................. 75 Tribhovandas Bhimji Zaveri (India) ................................................................................... 77 Tiffany & Co. (United States) ............................................................................................. 78 Recommendations ......................................................................................................... 80 Recommendations to Jewelry Companies ............................................................................... 80 Supply Chain Policy ......................................................................................................... 80 Supply Chain Information and Traceability ....................................................................... 80 Assessment of Human Rights Risks ................................................................................. 80 Response to Human Rights Risks ...................................................................................... 81 Third-Party Verification and Grievance Mechanisms .......................................................... 81 Public Reporting on Human Rights Due Diligence .............................................................. 81 Public Reporting on Supply Chains ................................................................................... 81 Artisanal and Small-Scale Mining .................................................................................... 82 Recommendations to Sector-Specific Certification Schemes and Industry Initiatives, including the Responsible Jewellery Council: ......................................................................................... 82 Recommendations to Governments ........................................................................................ 83 Acknowledgments ......................................................................................................... 84 SUMMARY HUMAN RIGHTS WATCH | NOVEMBER 2020 SUMMARY The Covid-19 pandemic has demonstrated the fragility of global supply chains and the vulnerability of people working at the bottom of these supply chains. In the mining sector, the pandemic has had devastating effects on workers and communities around the world. In some parts of Africa, Asia, and Latin America, small-scale mining activity has been reduced or halted due to lockdowns and blocked trade routes. Where mining has been suspended, mine workers and their families have lost their income. Where mining has continued, workers and affected communities have been exposed to increased risks to their human rights. In some small-scale mining areas, child labor has risen. 4 SPARKLING JEWELS, OPAQUE SUPPLY CHAINS Mponeng Mine in South Africa, which was closed between May 2020 due to a Covid-19 outbreak and restarted partially in June 2020. © 2017 JMK/Wikimedia Commons HUMAN RIGHTS WATCH | NOVEMBER 2020 5 Miners look for diamonds and gold in a mine at the edge of the Canaima National Park in Parai-Tepui, Bolivar state, Venezuela, May 2019. Human Rights Watch has documented serious human rights abuses and environmental destruction by armed groups controlling mines in Bolivar state. © 2019 Michael Robinson Chavez/The Washington Post via Getty Images 6 SPARKLING JEWELS, OPAQUE SUPPLY CHAINS A child working at a gold mining site near Baboua, Nana-Mambéré province, Central African Republic. © 2020 International Peace Information Service In addition, some illegal mine operators and traders have made use of the Covid-19 pandemic to expand their unlawful small-scale mining activities. Illegal gold mining in Africa and Latin America threatens the environment and rights protections, especially the rights
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