A PRACTICAL WAY TO INTRODUCE A WORLDWIDE JEWELRY ETHICAL TRADE SYSTEM RAPAPORT FAIR TRADE JEWELRY CONFERENCE Presented by: Edward Boehm ICA Director

ICA 568 Members in 44 Countries

...and ambassadors in 30 countries around the world Our Locations Head Office New York Europe Bureau Idar-Oberstein, Germany Asia Bureau Bangkok ...and ambassadors in 30 countries around the world

...promoting coloured gemstones worldwide Corporate PROFILE 2009

InColor Magazine

World Mining Report World Gemmological Laboratory Directory

Website: www.gemstone.org

ICA Congress in Panyu, China 2009

ICA Congress- Panyu 2009

ICA Congress – Panyu 2009

ICA and Ethical Trade

The current working team: Andrew Cody ICA Immediate Past President Jean Claude Michelou ICA Vice President Edward Boehm ICA Director Professor Michael Hopkins Geneva University And just joining the team: Professor Donald Feaver & PhD Student Royal Melbourne Institute of Technology

The World Bank

Suppliers of Materials Mining Metals Gold Platinum Silver Others Gemstones Diamond Coloured Organic Suppliers of Materials Manufacturing Refining Jewellery Suppliers Laboratories Treatments of metals/ gemstones Cutting/ Polishing of Gemstones Watch Manufacture conditions Wholesale & Distribution Retailer CONSUMER Hundreds of Countries with a myriad of cultures and standards.

Suppliers of Materials JEWELRY SUPPLY CHAIN ? What makes a mining operation Ethical? Mining Metals Gold Platinum Silver Others Gemstones Diamond Colored Organic Suppliers of Materials First Tier Large Scale Miners-Small Scale Miners Labor Issues Human Rights Child Labor Poor Wages Safety Conditions Community Benefits Community Displacement Treatment Issues Disclosure Safety issues-irradiation Permanency of treatment Environmental impact Environmental Issues Chemical pollution Landscape scarring Deforestation Wildlife Economic & Socio-Political Issues Political Terrorism Smuggling Money laundering

Over 200 Sovereign States Different Cultures Different Standards Different Rules

Other Problems Associated with Implementing Ethical Trade Each of the previously mentioned issues will vary according to : Different Products- Gemstones & Metals Different Supplier Countries Different Cultures Different Economic Structures Different Labor Standards

Ethical Trade Issues Facing First Tier - Mining Labor Issues Environmental Issues Economic & Socio-Political Issues Treatments Human rights Child Labor Poor Wages Safety conditions Displacement of communities Chemical pollution Landscape scarring Deforestation Wildlife displacement Political instability Terrorism Money laundering Smuggling Disclosure Safety issues

Labor Issues Human rights Child Labor Poor Wages Safety conditions Displacement of communities

Environmental Issues Chemical pollution Landscape scarring Deforestation Wildlife Displacement

Economic & Socio-Political Issues Political Instability Terrorism Money Laundering Smuggling

Large mining concerns are easier to regulate

However, there are millions of artisanal miners

Responsible Jewelry Council Members Mining AngloGold Ashanti Arslanian Freres NV Bonas & Co. Ltd Dalumi Diamonds Diarough N.V. Dimexon Diamonds HRA Investments Ltd I.Hennig & Co. Ltd Lazare Kaplan International Inc. Overseas Dimaonds NV / Isee2 Rosy Blue N.V. Rothschild Diamonds Ltd Sima Diamond NV Steinmetz Suashish Diamonds Trade Associations The American Gem Society British Jewellers Association Jewellers of America Manufacturing Jewelers and Suppliers of America Inc. National Mining Association The National Association of Goldsmiths World Gold Council Service Industries (inc. financial institutions) Int. Diamond and Jewellery Group ABN-AMRO The Assay Office

Responsible Jewelry Council Members cont’d Jewellery Manufacturing or Wholesale DN Gems Corp Gabriel & Co Jaeger-LeCoultre J.B. Jewelry Leo Schachter Diamonds LLC Libman & Company Ltd Kristall Inc. Regal Imports Ltd Robertso Coin Stubbs and Co Gold Refining Hedging or Trading Argor-Heraeus SA Metalor Tchnologies SA PAMP SA PX Precinox SA Valcambi SA Jewellery Manufacturing or Wholesale AR & AR Jewellery Inc Aurafin LLC Baume & Mercier Boite D’Or Gioielli S.R.L. Carrera y Carrera C&J Jewelry Cendres+M&eacute:taux SA Christian Bernard Colormasters Gem Corp Cristofol Paris

Responsible Jewelry Council Members cont’d Retail Argos Ltd Ben Bridge Jeweler Borsheims Boucheron Brown Goldsmiths Bulgari S.p.A Cartier Chanel Horlogerie/Joaillerie Day’s Jewellery Element Jewellery Gomez & Molina Joyeros Goodmans Jewelers Inc Hamilton Jewellers Harriet Kelsall Jewellery Design Ltd Harry Winston H. Cunningham Fine Jewelry Inc. Helzberg Diamonds Ice cool.co.uk JCPenney Jewellery By Varouj Inc Larter and Sons Leber Jeweler Inc. Lux Bond & Green Marissa D. Harvey Montblanc Moet Hennessy – Louis Vuitton Nicholas James Piaget Precious Metals Reis-Nichols Inc. Signet Group plc. Simms II Jewelers Tiffany & Co. Transparence S. A. Van Cleef & Arpels WhiteFlash.com Zale Corporation Current membership is approximately 100 organizations

5 Million people involved Current RJC membership is approximately 100 members But there are at least 5 Million people involved in the jewelry industry worldwide

The people who suffer in the producing countries can’t afford to wait … Let’s work together to make Ethical Trade a reality

What is the basis of the ICA proposal?

World Jewellery Confederation ? ETHICAL TRADER RETAILER CAT 3 2009 World Jewellery Confederation

Global Reach

Advice & input from NGO’s and Ethical Trade initiatives to advise on standards JETS ADMINISTRATION JETS operations & management International & National Associations with approved Code of Ethics (potentially 100 associations) Wholesale and Retail members receive accreditation Consumer Confidence UNDP World Bank ARM CASM No dirty gold IRMA DDI End Poverty

Examples of Industry Codes of Ethics at work: ICA Code of Ethics Japan Jewellers Association AGTA Colored Diamond Association Code Of Ethics TGJTA JAA Work together with industry organizations that already have established ethical guidelines Examples of Industry Codes of Ethics at work: International Colored Gemstone Association Thai Gem & Jewellery Traders Assocation Gemological Institute of America Gemmological Association of Australia Jewellers Association of Australia Japan Jewellery Association American Gem Trade Association The Gemmological Association of Great Britain British Jewellers Association ETC

Ethical Trade Initiatives No Dirty Gold Ethical Metalsmiths Kimberly Process DDI ARM IRMA CASM CRJP MINE _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ PROCESSING _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ WHOLESALE _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ RETAIL _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ Most initiatives do not have a solid connection or link with the retailer which would ensure a conduit for ethically certified products from mine to market

World Jewellery Confederation The JET System would create openings for certified products to the consumer It would also recognise approved product certification of many other initiatives Examples... Certified Ethical product Certified Ethical product Certified Ethical product Certified Ethical Product Recognised by CIBJO JETS program World Jewellery Confederation CRJP Retailer Manufacturer JETS Retailer Ethically Aware Consumer

World Jewellery Confederation ETHICAL TRADER RETAILER 2009 World Jewellery Confederation ETHICAL TRADER MINER 2009 World Jewellery Confederation World Jewellery Confederation ETHICAL TRADER MANUFACTURER 2009

Benefit the Consumer

Benefit the Retailer

Benefit the Cutter, Manufacturer, & Wholesaler

Benefit the Miner & Local Population