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The Hidden Cost of Jewelry Human Rights in Supply Chains and the Responsibility of Jewelry Companies

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The Hidden Cost of Jewelry Human Rights in Supply Chains and the Responsibility of Jewelry Companies The Hidden Cost of Jewelry Human Rights in Supply Chains and the Responsibility of Jewelry Companies Copyright © 2018 Human Rights Watch All rights reserved. Printed in the United States of America ISBN: 978-1-6231-35676 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 FEBRUARY 2018 ISBN: 978-1-6231-35676 The Hidden Cost of Jewelry Human Rights in Supply Chains and the Responsibility of Jewelry Companies Summary ........................................................................................................................... 1 I. Introduction .................................................................................................................. 18 The Supply Chains for Gold and Diamonds .............................................................................. 18 The Diamond Supply Chain .............................................................................................. 18 The Gold Supply Chain .................................................................................................... 20 Human Rights Abuses in the Gold and Diamond Supply Chain ................................................. 22 The Worst Forms of Child Labor......................................................................................... 22 Forced Labor and Human Trafficking ................................................................................. 23 Environmental Harm ......................................................................................................... 24 Land Rights and Indigenous People’s Rights Violations .................................................... 25 Armed Conflict Violations, Including Killings and Sexual Violence .................................... 26 II. Existing Standards–And Why They Are Not Enough ....................................................... 28 OECD Due Diligence Guidance – A Key Standard, Poorly Implemented .................................... 29 The Kimberley Process—An Inadequate Model ........................................................................ 31 The Responsible Jewellery Council—A Weak Assurance ........................................................... 32 The Code of Practices ....................................................................................................... 33 The Chain-of-Custody Standard ........................................................................................ 35 The Audit Process ............................................................................................................. 37 III. How Jewelry Companies Can Source Responsibly ......................................................... 39 Key Elements of Responsible Sourcing .................................................................................... 39 Promising Practices ................................................................................................................ 41 Traceability and Chain of Custody ..................................................................................... 41 Sourcing from Certified Mines .......................................................................................... 42 Batch Processing ............................................................................................................. 45 Recycled Gold .................................................................................................................. 45 IV. Company Rankings and Performance ........................................................................... 47 Methodology .......................................................................................................................... 47 Overview ............................................................................................................................... 48 Company Rankings on Responsible Sourcing .......................................................................... 53 Strong .................................................................................................................................... 54 Tiffany and Co. (US) .......................................................................................................... 54 Moderate ................................................................................................................................ 57 Bulgari (Italy) ................................................................................................................... 57 Cartier (France) ............................................................................................................... 60 Pandora (Denmark) ......................................................................................................... 64 Signet Jewelers (US) ........................................................................................................ 68 Weak ...................................................................................................................................... 73 Boodles (UK) .................................................................................................................... 73 Chopard (Switzerland) ...................................................................................................... 76 Christ (Germany) .............................................................................................................. 79 Harry Winston (US) .......................................................................................................... 82 Very weak ............................................................................................................................... 85 Tanishq (India) ................................................................................................................. 85 No Ranking Due to Non-Disclosure .......................................................................................... 87 Kalyan (India) ................................................................................................................... 87 Rolex (Switzerland) ......................................................................................................... 89 Tribhovandas Bhimji Zaveri Limited (TBZ Ltd.) (India) ....................................................... 91 V. A Call to Action: Next Steps for the Jewelry Industry ...................................................... 94 Recommendations to Jewelry Companies ............................................................................... 94 Supply Chain Policy ......................................................................................................... 94 Supply Chain Information and Traceability ....................................................................... 94 Assessment of Human Rights Risks ................................................................................. 94 Response to Human Rights Risks ...................................................................................... 95 Third-Party Verification ..................................................................................................... 95 Public Reporting on Human Rights Due Diligence .............................................................. 95 Public Reporting on Supply Chains ................................................................................... 95 Artisanal and Small-Scale Mining ..................................................................................... 95 Recommendations to the Responsible Jewellery Council ........................................................ 96 Acknowledgments ............................................................................................................ 97 Annex .............................................................................................................................. 98 SUMMARY HUMAN RIGHTS WATCH | FEBRUARY 2018 4 THE HIDDEN COST OF JEWELRY Jewelry and watches denote wealth and status, as well as artistry, beauty, and love. Gold and diamond jewelry in particular are frequently purchased as gifts for loved ones and for special occasions. Globally, about 90 million carats of rough diamonds and 1,600 tons of gold are mined for jewelry every year, generating over US$300 billion in revenue. The purchase of bridal jewelry, including engagement and wedding rings, has particular emotional and financial significance. In India, for example, weddings generate approximately 50 percent of the country’s annual gold demand. For Valentine’s and Mother’s Day, Americans spend more on jewelry than any other type of gift, purchasing nearly $10 billion of jewelry for the two holidays in 2017. For millions of workers, gold and diamond mining is an important source of income. But the conditions under which gold and diamonds
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