Pandora_Annual_Report_2018

Product Planet P A N D O R A A N N U A L R E P O R T 2 0 1 8 C O N T E N T S G O V E R N A N C E & M A N A G E M E N T 3 2 Responsible business practices begin in the de- sign phase with the choice of materials, and continue through ethical sourcing and crafting. When suppliers enter into an agreement with Pandora, they sign our Suppliers’ Code of Con- duct, which addresses business integrity, human Business integrity We believe in fair and honest competition, and we are dedicated to working against corrupt practices in our operations in the societies in which we operate. The risk of corruption in our procurement process is countered by our Business Integrity Policy and our Responsible Supplier Programme. In 2018, there has been zero identified corruption non-conformaties found in our audits. Our Business Integrity Policy instructs us to: never offer, give or accept gifts, entertainment or any other advan- tages exceeding locally defined triviality limits; never offer, authorise, give or accept bribes or extortion; refuse to pay facilita- tion payments, even if this could mean a loss of business; and not contribute to money laundering. Our Environmental Policy commits us to minimis- ing our environmental footprint by seeking new ways to reduce emissions, waste and consump- tion of resources. We acquire and maintain certifi- cates for internationally recognised environmental management systems at our crafting facilities. We run training and campaigns and have standard procedures on environmental issues for relevant employees. In addition, we have environmental and energy teams at our crafting facilities. We are regularly audited by the RJC, and envi- ronmental risks in our supply chain are mitigated through our Responsible Supplier Programme. Primary environmental and climate risks in our industry are CO 2 emissions and the depletion of natural resources, both associated with mining. We minimise this by sourcing recycled gold and silver and predominantly using man-made stones, which have less environmental impact than mined stones. RESOURCE CONSUMPTION We are building for the future, also in terms of re- source efficiency. With significant investments over the past years, Pandora today operates state-of-the- art green crafting facilities and work to continu- ously optimise the use of energy, water and other resources. Our crafting facility in Lamphun opened in 2017, and our new facility in Bangkok opened in June 2018. Both facilities are LEED Gold certified. • Our facility in Lamphun has reached its target of recycling 45% of the water it uses and solar panels produce 10% of the energy it uses. An in- novative air conditioning and ventilation system reduces ventilation energy loss by up to 80%. • Our new facility in Bangkok achieved LEED Gold certification in 2018, scoring 10 out of 10 in theWater Efficiency category and 6 out of 6 in the Innovation Design category. The results will be validated next year, when the facility has been running at full capacity for a longer period. Total energy and water use in 2018 increased, reflecting our increasingly more advanced jewel- lery designs and a widening portfolio of jewellery. However, thanks to our LEED certified crafting fa- cilities, our consumption of energy and especially water is considered very efficient and well below the average in the luxury, apparel and accessories sectors. Partnerships Pandora is a member of the United Nations Global Compact (UNGC), and we report yearly on progress within the programme. Pandora is also a member of the RJC – an industry-leading initiative that strives to develop and implement responsible business practices throughout the jewellery industry. In 2018, we initiat- ed a two-year partnership with the Youth Fashion Summit in cooperation with the Global Fashion Agenda and UNGC, which brings fashion and business students from around the world together to drive sustain- ability in fashion. rights and environmental issues. Pandora has continued its work with ensuring ethical busi- ness practices in 2018 through our Responsible Supplier Programme. The programme ensures compliance with the Code, which covers screen- ing and risk assessment, training, dialogue and supplier audits, as well as timely follow-up if non-compliance is identified. SUPPLY CHAIN AND RAW MATERIALS Silver is the most used material in our products. In 2018, 88% of the silver grains sourced by Pandora came from recycled sources. The remaining 12% came from mined silver supplied by certified re- sponsible refiners. We work with suppliers to en- sure that as much silver as possible comes from recycling. In 2018, 100% of the gold grains used in our products were recycled.