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According to the International LabourOrganisation
of theUnitedNations, anestimated80 to100million
peoplearound theworldaredependingon small-scale
miningalone. For thesepeoplemining is either their
only sourceof incomeor avital contribution toother
sourcesof income.Mining reducesoneof themain
challengesof thedevelopingworld– themigration from
rural areas to thecities –and it stimulatesdomesticde-
mand for goods and services.Theother sideof thecoin
is thatmining is generallyenergyconsuming, andwhen
carriedout irresponsibly,miningcanbeassociatedwith
human rights abuses, poorworkingconditions andhave
degradingeffectson theenvironment.
Gemstones andpreciousmetalsmay travel through a
number of traders, refiners, graders and cutters and cross
multiple national borders before reaching awide variety
of industries, including jewellerymanufacturing.
Within a short period of time, PANDORA has
grown to become amajor purchaser of gemstones,
precious metals and other materials commonly used
in the highly diversified jewellery industrywhere an
estimated 80 percent of the total retail value relates to
non-branded jewellery.
Our CSR Policy obliges us to be an active part
in the introduction of still more responsible business
practices within the jewellery industry. Nevertheless,
due to our low proportion of the total consumption of
gemstones and precious metals, our direct sphere of
influence is limited.
This fact requires PANDORA to adapt a two-
pronged strategy to responsible business practices. One
that has to dowith conditions within our own supply
chain and one that puts focus on RJC and howwe can
influence the jewellery industry as awhole.
EMBEDDINGCSR IN SOURCING
PANDORA’s Supplier SegmentationModel measures
and categories our suppliers according to their business
importance for PANDORA.We are currently expanding
thismodel to includemeasures on theCSR risks related
toour suppliers (such as country of operation, product
related risks, CSRmaturity etc).Within2011, we aim to
enable our employees to evaluate suppliers correctly on
their CSR performance and ensure that we initiate rel-
evant activities for each individual supplier.
This process serves as a perfect example of our
aspiration to embedCSR considerations into existing
business processes and transfer CSR “know-how” and
responsibility toour business units – and in turn to
our suppliers.
7
PANDORA CSR REPORT
SOURCING
