This content was first published on IGR – Italian Gemological Review no. 15 in 2022. The information provided here is therefore current as of the original publication date.
The Responsible Jewellery Council (RJC), founded in 2004, is a private association focused on developing responsible practices (human and labor rights, environmental impact, mining sustainability) and brings together more than 1,500 companies from the entire jewelry and gemstone industry supply chain. The RJC members are committed to complying with the Code of Practices, a standard that outlines responsible procedures. To apply for certification under the Code, a company must undergo an independent audit verifying its compliance. It is also possible to adhere to an additional optional standard, the Chain-of-Custody Standard, which is currently only available for metals while for diamonds and color stones the body has not yet been able to establish any shared procedure.
There has been no shortage of controversial aspects in RJC’s journey, highlighted by some NGOs, such as the possibility for members to immediately enjoy the membership benefits while then being allowed two years to conform to compliance as well as certain delay in complying with OECD guidelines. Yet the association has not failed to emerge as the reference partner when it comes to the procurement of ethical credentials by companies belonging to the jewelry and gemstone industry. Its founding members include leading groups such as BHP Billiton, Rio Tinto, Tiffany & Co, Cartier, as well as industry associations such as Jewelers of America.
Membership applications have led to an almost triumphant march and there are very few exceptions, just a few of the big players in the jewelry world have declined to choose the RJC as their ethics compliance partner.
The shakeup triggered in the first half of 2022 following the sanctions after the Russia-Ukraine conflict caused the worst crisis in the entire organization’s history. Alrosa, the Russian rough diamond miner and market leader, held a prominent place in RJC’s balances. As a result, Alrosa’s representative made the decision in early March to step down as RJC vice president.
As a matter of fact, the U.S. restrictions did not ban the industry from doing business with Alrosa, but they did prohibit financial transactions related to its equity and debt.
The precautionary move to withdraw Alrosa’s RJC membership proved to be not sufficient and in late March the Pandora group, 7,000 stores worldwide, withdrew because, in the wake of Russia’s invasion of Ukraine, it felt that RJC relations with Russian members should be suspended.
Pandora’s stance led to the resignation of Iris Van der Veken as executive director of the RJC, igniting a chain reaction: Richemont, Kering, Watches of Switzerland, and Bulgari consequently withdrew their membership from the council.
There are several issues at stake. To begin with, there is a legal issue concerning whether the body’s effective statutory powers could terminate the membership of a member such as Alrosa and strike harder than a temporary suspension would have. «As a member-based trade association – reads a statement – the RJC must act in accordance with its constitutional and statutory duties and fulfill its responsibilities in good faith».
It is also necessary to gauge the interest that individual huge companies may have in curtailing business with Russia: while some of them do not consider this country a strategic supplier or a key outlet market, for others a break with Alrosa or other Russian partners would result in a damage to their strategies on a global scale.
In mid-June, Richemont and Kering backed down and reconfirmed their membership in the RJC, accepting in effect the association’s position according to which internal regulations did not allow the RJC to proceed against Alrosa any further than simply agreeing to self-suspension. At the time of publication, it does not appear that Pandora has applied for readmission.
In the meantime memberships to the Watch & Jewellery Initiative 2030, founded by Cartier and Kering with the aim to accelerate positive impact building climate resilience, preserving resources, and fostering inclusiveness, continue. In September 2022 Pandora, Mattioli and Piaget, among others, have joined the initiative.
Gem News published on IGR – Italian Gemological Review #15, Autumn 2022
