The Diamond Box for Dummies

The Diamond Box for Dummies

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According to an RJC auditor, suppliers only need to pledge that they carry out strong civils rights due diligence, yet do not supply any proof for this. Neither does the Code of Practices require jewelersor various other downstream companiesto have traceability or chain of custody of their gold or diamonds. The Code of Practices is likewise weak in other substantive locations, for instance, on native peoples' legal rights and on resettlement.


In March 2017, the RJC had 342 members who had not (yet) completed the audit process that accredits compliance with the Code of Practices. Furthermore, companies can join at any degree of their procedures. A tiny subsidiary office of a big jewelry company could apply for RJC subscription, without including the remainder of the firm's entities.


The Code of Practices does not call for companies to publicly report on the concrete actions they have actually taken to carry out due diligencea core need of the OECD Assistance (moissanite rings). Its reporting obligations are vague and do not point out due diligence or the need for firms to report on the steps they have taken to recognize, analyze, and minimize risks in their supply chains

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A second RJC criterion, the Chain-of-Custody Criterion, promotes traceability and is more rigorous, but adherence to it is optional for RJC members. By very early 2018, just 48 of over 1,000 participant companies had actually certified entities under the standard, consisting of 13 jewelry experts. The Chain-of-Custody Criterion needs companies to establish documentary evidence of organization deals along the supply chain and to validate they are not triggering negative influences in conflict-affected and high-risk areas.


Instead, companies are permitted to pick some "entities" under their control for qualification, leaving various other entities of a company uncertified. While this may permit companies to slowly switch to even more responsible sourcing methods, the current practice likewise brings the risk that an entire firm enjoys the reputational benefit when the majority of procedures is not in conformity with the standard.


All RJC participant business have to go through an audit to show that they are compliant with the Code of Practices, and to get qualification. Those business that pick to obtain qualification for the Chain-of-Custody Criterion need to undergo a different audit. Audits are based mainly on a review of the company's written policies and documentation, and check outs to a "depictive collection" of facilities.

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It is not a comprehensive examination regarding whether the firm actually carries out or follows its plans throughout its procedures. Large firms might have operations in multiple countries, and count on lots of vendors, however still may get RJC accreditation based on visits to just a couple of facilities under its direct control without any type of evaluation of many others.


Although audits are expected to include questions on a broad variety of civils rights, auditors are not constantly certified human civil liberties professionals. As soon as the auditors complete their record, they only send a summary record of the audit to the RJC, not the complete audit report, which is shared just with the company




While labor abuses are widespread in the industry, artisanal mines offer income for countless workers and thousands of mining communities. Person Civil liberty Watch believes that the jewelry sector must make every effort to make sure that their efforts to mitigate supply chain civils rights risks do not lead them to merely exclude all artisanal distributors from their supply chains as the "path of least resistance." Instead, they must support efforts to formalize and professionalize artisanal mines and improve functioning conditions.


The OECD Charge Persistance Assistance recognizes this and is advertising cost-sharing within the industry. This way, all business along the supply chain share the financial concern. A number of efforts have actually emerged that can aid jewelry experts trace their gold and diamonds to mines of beginning, and a lot more responsibly source from the artisanal industry.

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About 600 adult miners have been registered at 6 mine sites; children can not register. Accreditation of particular mines versus responsible sourcing requirements can give jewelry experts with higher assurance that the gold or rubies they acquire from those mines are not tainted by civils rights misuses. Nongovernmental organizations such as Solidaridad and IMPACT can play a crucial function in sustaining mines to enhance practices so they have the ability to adhere to the criterion; this might include actions to deal with kid labor, improve ecological conduct, gain access to finance, and establish direct contact with buyers.


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Two standardscertify artisanal and small-scale gold mines that adapt to human rights, labor rights, and ecological standardsthe Fairmined Criterion and the Fairtrade Gold Criterion (black diamond jewellery). Depending on the client's license with Fairmined, the gold might be fully deducible to the mine of origin, or may be mixed with various other gold.




This amount is just a tiny portion of the gold made use of annually by numerous of the business taken a look at in this record. Since very early 2018, eight mines in 4 nations (Bolivia, Colombia, Mongolia, and Peru) were accredited, with an extra 20 mining organizations working towards accreditation. The Fairmined Gold Standard is presently developing a brand-new "market access" standard that looks for to help artisanal golden goose in the process in the direction of complete qualification.

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It is carried out under the umbrella weblink of Fairtrade International, and permits jewelry experts to trace their gold back completely to the mine of origin. Fairtrade's very first certified mines remained in Peru. Over the last few years, the Fairtrade Structure, Solidaridad, and other NGOs performed a program of training and support to artisanal and small-scale gold miners in Africa, and in very early 2017, accredited an artisanal gold mine in Uganda.

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