Pandora_Sustainability_Report_2018

Human and labour rights Pandora’s Human Rights Policy stipulates our commitment to the United Nations Guiding Principles on Business and Human Rights, and the core conventions of the International Labour Organization (ILO). The policy further instructs us to advance human rights within our sphere of influence. To ensure this, Pandora is checked against and certified according to the Responsible Jewellery Council’s (RJC’s) Code of Practices (COP). The RJC COP has been developed to assess, identify and mitigate human rights risks in the jewellery supply chain. Moreover, we regularly assess potential human rights and environmental risks in our own value chain. The main human and labour rights risks are to be found among our suppliers. By sourcing our core jewellery materials from certified responsible suppliers, and by enrolling our suppliers in Pandora’s Responsible Supplier Programme, we seek to lower the risks of causing or becoming complicit in human rights infringements. We constantly work to prevent and, when necessary, mitigate negative impacts of our activities. Even if overtime at our crafting facilities in Thailand is always voluntary, compliant with Thai law, remunerated at premium rates, and seen as a benefit by our Thai colleagues, we still strive to keep the weekly working hours below ILO standards. Weekly working hours in 2018 periodically and to a minor extent exceeded 60 hours. In order to mitigate this we introduced night shifts in 2018. In 2019 we will look deeper into which tools we can use to keep the working hours within our standards. Gender diversity in management We believe that our company benefits from a diverse management team. We have a number of gender diversity objectives and we review progress once a year. Our goals in this area are: • At least 40% of the members of the Board of Directors should be of the underrepresented sex. At the end of 2018, women made up 43% of Board of Directors (3 out of 7), compared with 33% in 2017 (3 out of 9), which places Pandora well above the average of 16% for Danish listed companies. • At least 40% of senior management (members of the Management Board, general managers and vice presidents) should be of the underrepresented sex. At the end of 2018, 30% of senior management were women, a decline compared with 39% in 2017. Pandora will continue to strive for a better gender balance in senior management. • The gender balance on Pandora’s leadership programmes should mirror the balance among vice presidents and directors. In 2018, 45% of vice presidents and directors and 49% of leadership programme participants were women. Focus on Thailand Our modern crafting facilities in Thailand, placed in Bangkok and Lamphun (Northern Thailand), provide safe, healthy, developing and engaging working conditions for more than 14,000 people. Their skills, commitment and flair for aesthetics are a major part of the foundation of our company. Social impact study We consider our crafting facilities in Thailand to be significant and positive contributors to the surrounding Thai communities and the country in general. This was verified by a social impact study conducted by external experts in 2017. The study showed that the average salary for a Pandora crafting employee is above the industry average, and that it can sustain the livelihood of an average-sized household (around three people). Furthermore, the study showed that for each Pandora job, an additional 1.7 jobs were created in Thailand, due to the effect of money spent with our Thai suppliers and the spending power of our employees. Employees in their characteristic red shirts, enjoying the shaded outdoor area AGE SPLIT, GROUP 1% <18 30% 18-25 54% 26-35 11% 36-45 4% 46+ > For our statements on the UK Modern Slavery Act and The California Transparency in Supply Chains Act, please visit www.Pandoragroup.com/csr. Headcount as of 31 December 2018 GENDER S P L I T, GROUP & MANAGEMENT Male Female Board of Directors 57% 43% Senior Management 70% 30% Directors and Managers 39% 61% Store Managers 9% 91% Total Management 21% 79% Total Group 25% 75% A human rights perspective Ensuring human rights throughout a value chain is a complex matter for all companies. This is why Pandora engages in dialogue with external stakeholders, such as the United Nations Global Compact (UNGC), the RJC and the Danish Business Network for Human Rights. The Danish Business Network for Human Rights offer members the opportunity to discuss their company’s challenges and dilemmas with peers who represent different sectors and approaches to responsible business practices, providing valuable insights. ONE PANDORA CRAFTING EMPLOYEE’S SALARY sustains one average household SUSTAINABILITY REPORT 2018/19 32 33 PEOPLE – FOCUS ON THAILAND