 
          21
        
        
          MINIMISINGOUR
        
        
          ENVIRONMENTAL
        
        
          IMPACT
        
        
          
            PRECIOUSMETALS& STONES
          
        
        
          Recycled preciousmetals are of the exact same quality
        
        
          and value asminedmetals, but have less social and
        
        
          environmental impact. As part of our efforts to advance
        
        
          social and environmentally responsible sourcing practices,
        
        
          96% of all gold grains used in PANDORA products in 2015
        
        
          originated from recycled sources.When it comes to silver,
        
        
          83% of the silver grains sourcedby PANDORA in2015
        
        
          originated from recycled sources.
        
        
          As PANDORA is committed to helping improve ethics
        
        
          throughout the jewellery supply chain, in 2015, we opened
        
        
          a dialoguewithour suppliers to develop a standard for
        
        
          responsible silvermining (described under PRODUCT).
        
        
          Man-made stones are fully traceable and are considered
        
        
          tohave a significantly lower environmental impact than
        
        
          their natural counterparts. Furthermore, the ability to create
        
        
          stoneswith fewer colour andquality variations considerably
        
        
          reducesmaterial waste.
        
        
          
            CRAFTING
          
        
        
          In2015, PANDORA experienced a sharp increase in
        
        
          demand and shippedmore than 100millionpieces of
        
        
          jewellery, comparedwith 91million in 2014. Further,
        
        
          increased complexity of jewellery designs hasmade it
        
        
          challenging to simultaneously reduce our energy and
        
        
          water consumption at our crafting facilities. In2016, we
        
        
          will open a new state-of-the-art crafting facility in northern
        
        
          Thailand.This new sitewill be a Leadership in Energy and
        
        
          Environmental Design (LEED) certified facilitywith8,500
        
        
          m2 of solar cells, capable of recycling up to 90%of the
        
        
          water tapped andwithother environmentally friendly
        
        
          features. In additions, we are planning yet another LEED
        
        
          certified crafting facility inBangkok, whichwill become
        
        
          operational in 2017.
        
        
          With the planned capacity expansion, we expect to be
        
        
          able to improve our performancewithin energy andwater
        
        
          consumption in the years to come.
        
        
          
            Energy
          
        
        
          PANDORAProductionThailand (PPT) is by far ourmost
        
        
          energy-consuming entity.The amount of energy usedhere
        
        
          increased from 23,243,000 kWh in2014 to29,472,000
        
        
          in2015.The rise in energy consumption reflects the
        
        
          increase in crafting complexity and the number of pieces
        
        
          of jewellery produced. Besides the burn-out ovens used in
        
        
          the crafting process, the extensive use of chillers to ensure
        
        
          a comfortably cool working environment also consumes
        
        
          a considerable amount of energy. Ovens and chillers
        
        
          put together account for approximately 40%of energy
        
        
          consumption.
        
        
          PPT is ISO50001 (EnergyMangement) certified, the
        
        
          standard throughwhichwe define andmonitor our goals,
        
        
          methodology and performance. In 2015, we introduced
        
        
          several newprojects aimed at reducing our energy
        
        
          consumption.The optimisationof air compressor systems
        
        
          has both increased efficiency and saved energy and the
        
        
          replacement of chillers has reduced the amount of energy
        
        
          used.We also carried out small scale projects like installing
        
        
          LED lights in various training and crafting areas. In addition
        
        
          to these already implemented features, we are testing
        
        
          how to optimise energy consumption indifferent crafting
        
        
          processes. Also, in 2015, 480 selectedpeople received
        
        
          training in energymanagement.