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PANDORA ETHICS REPORT 2016

All PANDORA paper bags originate

from wood from sustainable forestry

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SUPPL I ER AUDITS

In 2016, we reached our target, stipulating that 85% of our

total sourcing value must come from suppliers who have

been audited by either our external auditing company or

are certified members of the RJC. This means that they have

been audited against the broadest and strictest standards

within the jewellery supply chain. The majority of non-

compliance cases identified during the independent supplier

audits involve either health and safety standards or working

conditions. PANDORA’s crafting facilities in Thailand has

worked diligently to achieve high standards as well as

expertise within both areas. Thus, we seek to transfer our

knowledge and expertise to our suppliers helping them

to raise safety levels, job satisfaction and commitment

– and thereby also attraction, retention, productivity and

profitability. Further, in 2016, 199 participants from our

key suppliers attended a one day conference at our new

facility in Lamphun. Here we showcased our state-of-art

green solutions.

55% Health & safety

15 % Compensation & benefits

14 % Working hours

9 % Environment

2 % Disciplinary

practice

2 % Freedom of association

1 % Discrimination

3 % Insufficient child/forced

labour procedures

NON-COMPL IANCE I SSUES IDENTI F I ED

AT AUDITED SUPPL I ERS IN 2016

LIKE RINGS

IN WATER

Audits, dialogue and close cooperation with our

suppliers make a world of difference when it comes

to ethical standards. MTG Group, one of our long-time

suppliers of jewellery boxes and bags, are a good

example of this. Both of our businesses have evolved

rapidly and ethically since our collaboration began

in 2009.

Thomas Ahlmann-Liisberg, Director of MTG Group,

states: “Many things have happened in our company

through the close cooperation with PANDORA.

Having external auditors on site makes us all more

aware, but it is the ongoing dialogue that has

underlined the importance of health and safety,

good working environments, facilities for staff and

their families and even regular social events. This in

turn improves job satisfaction, retention rates and

quality levels.”

A focus on auditing and dialogue has enabled MTG

Group to plan ahead and implement various

initiatives such as certifications. MTG Group now

conduct their own supplier audits to ensure

compliance with their quality standards and ethical

stance. MTG has been certified by the Forest

Stewardship Council (FSC) ensuring that their wood

materials originate from sustainable forestry.

Additionally, MTG is in the process of becoming

SA8000 certified, regarded as among the highest

standard for Social Accountability.

While audits and certifications involves extra work

and cost, MTG Group believes that the resulting

learning curve, supply chain developments and

employee satisfaction make it all worthwhile.

“Teaming up with PANDORA, front runners in

ethical standards in the jewellery industry, means

that we also become front runners,” continues

Thomas Ahlmann-Liisberg. “We are a strong,

confident company with open doors, we are ahead

of legislation and so are our suppliers. Positivity is

spreading like rings in water.”