PANDORA Annual Report 2017

P A N D O R A A N N U A L R E P O R T 2 0 1 7 G O V E R N A N C E & M A N A G E M E N T 3 0 C O N T E N T S 13,250 EMP LOY E E S I N THA I L AND P EOP L E As a global jewellery brand, our activities impact the lives of thousands of people around the world. Our Human Rights Policy instructs us to respect all human rights and specifically never to engage in, solicit or accept child labour or forced labour in any form; to recognise and respect the right to freedom of movement, the right to asso- ciate and the right to enter into collective bar- gaining; to prohibit discrimination or any other unsuitable behaviour that might impair the dig- nity of our employees and the communities in which we operate; to provide employment and development opportunities for staff through fair and objective performance criteria; and to respond openly and transparently to perceived human rights violations. Potential adverse human rights impacts within the jewellery supply chain are predominantly associated with mining. We minimise this risk by sourcing recycled gold and silver grains and by predominantly using man-made stones. All the gold, silver and diamonds that we use can be traced back to certified responsible suppliers. P RODUCT Responsible business practices begin in the design phase with the choice of materials and con- tinue through ethical sourcing, procurement and crafting. When entering into an agreement with PANDORA, suppliers sign our Suppliers’ Code of Conduct, which addresses business integrity, human rights and environmental issues. To ensure compliance with the Code, we have a compre- hensive “Responsible Supplier Programme”, which includes screening and risk assessment, training, dialogue and supplier audits, and also ensures timely follow-up when non-compliance is identified. SUPPLY CHAIN AND RAW MATERIALS Silver is by far the most used material in our products. In 2017, 97% of silver grains sourced by PANDORA originated from recycled or reused sources. The remaining 3% came from mined sil- ver provided by certified responsible refiners. We work with specialised silver product suppliers to ensure that the highest possible percentage of the silver used in their products originates from reused sources. In 2017, 74% of the gold grains used in PANDORA’s products originated from recycling. The remaining gold originated from mining certified accord- ing to the RJC’s Chain of Cus- tody standard or the Good Delivery List standard issued by the London Bullion Market Association. Human rights risks related to other goods and service providers are covered by our “Responsi- ble Supplier Programme”. T RA I N I NG We offer training to our employees through a global network of PANDORA trainers and our in-house e-learning platform. We have specific training courses for production staff that span technical skills, safety, health, business continuity, the envi- ronment, leadership and life skills. P RODUCT I ON The vast majority of the 117 million jewellery pieces we produced in 2017 were crafted at our own facilities in Thailand. Here, Employee Wel- fare Committees are responsible for coordinating employee interests related to compensation and benefits, employee relations and social activities. The committee members are elected by their col- leagues every second year. PANDORA Production Thailand (PPT) offers employees safe and healthy working conditions and competitive compensation and benefits. The increase in the amount of jewellery pro- duced means specialised departments periodi- cally exceed the average weekly working hours defined by international standards. We addressed this in 2017 by focusing on efficiency and hiring additional people. P L ANE T Our Environmental Policy commits us to min- imising the environmental footprint of our operations by seeking new ways to reduce our consumption of resources, our emissions and waste. We acquire and maintain certificates for internationally recognised environmental man- agement systems at our crafting facilities, and 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. BUS I NE S S I NT EGR I T Y We believe in fair and honest competi- tion, and we are dedicated to working against corrupt practices in our oper- ations and 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”. Most importantly, our Business Integrity Policy instructs us never to offer, give or accept gifts, entertainment or any other advantages exceeding locally defined triviality limits; never to offer, author- ise, give or accept bribes or extortion; to refuse to pay facilitation payments, even if this could mean a loss of busi- ness; and not to contribute to money laundering.