PANDORA CSR Report 2013 - page 12-13

12
PANDORA ETHICS REPORT
13
PRODUCT
To ensure the highest possible return on the time and
resourceswe invest in our Responsible Supplier Program­
me, we decided in 2013 to further enhance our screening
procedures.When evaluating the risks associatedwith a
supplier’s country of operation, we consult theWorldwide
Governance Indicators (WGI) supported by theWorldBank.
TheWGI focus on six parameters: voice and accountability,
political stability and absence of violence, government
effectiveness, regulatory quality, rule of law and control of
corruption. Suppliers selected for the audit programme can
expect to be audited by external consultants every second
year. If non-compliances are identified during the audit,
PANDORA’s in-house expertswill cooperate closelywith
the supplier to restore compliance. Inmost cases, such
cooperationwill be followedwith additional external
verification audits.
In 2013, we achieved our target of auditing all potential
high-risk suppliers and initiating corrective actions on
relevant findings. Another 2013 achievement was the
fulfilment of our internal target stating that more than 75%
of the total sourcing volume for our crafting facilitiesmust
originate from certifiedmembers of the Responsible
JewelleryCouncil (RJC) – or from supplierswhowithin
the last two years have been audited by independent
consultants andmeasured up against PANDORA’s
requirements. Supplierswho, following the screening
process, might be exempted from audits are obviously
low-risk suppliers, highly qualified consultancies, one-off
suppliers aswell as suppliers fromwhomwe source
volumes valued at less than 50,000USD per year.
The Responsible Supplier Programme is described
in greater detail in PANDORACSRReport 2011. Having
governed our relationswithour suppliers in 2011- 2013,
the programme is scheduled for a review involving
external stakeholders in2014.
RESPONSIBLE GOLD AND SILVER
In 2013, weworked closelywith our suppliers of gold
grain and specialised goldproducts to implement
PANDORA’s Chain-of-Custody Standard, covering all of
our gold products.This standard enables us to track and
trace all our goldback to reputable global gold refineries.
Such refineriesmust be certified according to either
RJC’s Chain-of-Custody Standardor appear on London
BullionMarket Association’s (LBMA’s) GoldGoodDelivery
List, certifying that the refiner has implemented adequate
procedures for conducting human rights due diligence
into their supply chain. ByQ4 2013, PANDORA’s
Chain-of-Custody Standardwas fully implemented and
audits conducted by external experts verified its full
compliancewith relevant US/OECD regulationon human
rights due diligence.
Silver grains delivered to PANDORAProduction
Thailand (PPT) are sourced from supplierswho appear on
LBMA’s Silver GoodDelivery List andwe are currently
exploring the feasibility of extending this requirement to
our few suppliers of specialised silver products.
STONES, GEMSTONES AND DIAMONDS
Man-made stones, natural gemstones anddiamonds are
all included inour jewellery, each enjoying different
characteristics and advantages.
Diamonds and other gemstones found in nature are
truewonders – each one is unique and rare, and their long
histories unparalleled.Man-made stones are identical to
their natural gemstone counterparts in almost everyway,
including in the same basic crystal structure and chemical
composition aswell as other characteristics.Man-made
stones differ from their natural counterparts in that they
are fully traceable, more affordable and canbe supplied in
quantities suitable for large-scale jewellery crafting. Finally,
they exhibit fewer colour variations, considerably reducing
material waste.
Whilewe have no plans of discontinuing diamonds
from our product assortment, man-made stones are taking
on an increasingly important role in our collections. In
2013, none of our new collections includeddiamonds.
Nonetheless, to provide our costumerswith proper
assurance that we do our outmost to ensure ethical sourcing
of diamonds, all PANDORA invoices explicitly testify that:
“The diamonds herein invoiced have beenpurchased from
legitimate sources not involved in the funding of conflict
and in conformancewithUnitedNations resolutions.
PANDORA hereby guarantees that these diamonds are
conflict free, based onwritten guarantees providedby the
supplier of these diamonds. PANDORA also requireswritten
guarantees from its suppliers that the diamonds invoiced
donot originate from theMarange region inZimbabwe.”
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