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

Our Locations

...and ambassadors in 30 countries around the world

Head Office New York

Europe Bureau Idar-Oberstein, Germany

Asia Bureau Bangkok

...promoting coloured gemstones worldwide

Corporate

PROFILE

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 PresidentJean Claude Michelou ICA Vice PresidentEdward Boehm ICA Director

Professor Michael Hopkins Geneva University

And just joining the team:

Professor Donald Feaver & PhD Student Royal Melbourne Instituteof Technology

The World Bank

Wholesale & Distribution

Retailer

CONSUMER

Hundreds of Countries with a myriad of cultures and standards.

JEWELRY SUPPLY CHAIN

First Tier

What makes a mining operation Ethical?

Labor Issues

Human Rights Child Labor Poor Wages Safety Conditions Community Benefits Community Displacement

Environmental Issues

Chemical pollution Landscape scarring Deforestation Wildlife

Economic & Socio-Political Issues Political Terrorism Smuggling Money laundering

Treatment Issues

Disclosure Safety issues-irradiation Permanency of treatment Environmental impact

Large Scale Miners-Small Scale Miners

Over 200 Sovereign StatesDifferent CulturesDifferent StandardsDifferent Rules

Other Problems Associated with Implementing Ethical Trade

• Different Products- Gemstones & Metals • Different Supplier Countries

• Different Cultures

• Different Economic Structures

• Different Labor Standards

Each of the previously mentioned issues will vary according to :

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

Human rights Child Labor Poor Wages Safety conditions Displacement of communities

Labor Issues

Environmental Issues Chemical pollution Landscape scarring Deforestation Wildlife Displacement

Political Instability Terrorism Money Laundering Smuggling

Economic & Socio-Political Issues

Large mining concerns are easier to regulate

However, there are millions of artisanal miners

Responsible Jewelry Council Members

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

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

Responsible Jewelry Council Members cont’d

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

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

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

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?

ETHICAL TRADERRETAILER CAT 3

2009

Global Reach

JETS ADMINISTRATION

JETS operations & managementInternational & National Associations with approved Code of Ethics (potentially 100 associations)

Wholesale and Retail members receive accreditation

Consumer Confidence

Advice & input from NGO’s and Ethical Trade initiatives to advise on standards

CASM

ARM

UNDPWorld Bank

No dirty gold

End PovertyDDI

IRMA

ICA

Code of Ethics

Japan Jewellers AssociationCode of Ethics

AGTA

Code of Ethics

Colored Diamond Association

Code Of Ethics

TGJTA

Code of Ethics

JAA

Code of Ethics

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

Examples of Industry Codes of Ethics at work:

Work together with industry organizations that already have established ethical guidelines

Ethical Trade Initiatives

No Dirty Gold DDI ARM IRMA CASM CRJP

Kimberly Process

Ethical Metalsmiths

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

The JET System would create openings for certified products to the consumerIt would also recognise approved product certification of many other initiatives

Examples...

Recognised by CIBJO JETS program

Certified Ethical product Certified Ethical product

Certified Ethical Product

Manufacturer

JETS Retailer

CRJP Retailer

Ethically Aware Consumer

Certified Ethical product

ETHICAL TRADERMANUFACTURER 2009

ETHICAL TRADERMINER 2009

ETHICAL TRADERRETAILER 2009

Benefit the Consumer

Benefit the Retailer

Benefit the Cutter, Manufacturer, & Wholesaler

Benefit the Miner & Local Population