The Diamond Box for Dummies

The Diamond Box for Dummies

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According to an RJC auditor, vendors only need to pledge that they perform solid civils rights due diligence, but do not offer any kind of proof for this. Neither does the Code of Practices call for jewelersor various other downstream companiesto have traceability or chain of guardianship of their gold or diamonds. The Code of Practices is also weak in other substantive locations, for instance, on native peoples' rights and on resettlement.


In March 2017, the RJC had 342 members that had not (yet) finished the audit procedure that certifies compliance with the Code of Practices. Furthermore, firms can join at any kind of degree of their operations. For instance, a tiny subsidiary office of a huge precious jewelry firm might make an application for RJC subscription, without including the remainder of the firm's entities.


Ultimately, the Code of Practices does not require firms to openly report on the concrete steps they have required to carry out due diligencea core demand of the OECD Advice. Its coverage commitments are obscure and do not state due diligence or the need for companies to report on the actions they have actually required to recognize, assess, and reduce threats in their supply chains

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A 2nd RJC requirement, the Chain-of-Custody Requirement, promotes traceability and is much more extensive, yet adherence to it is optional for RJC participants. By very early 2018, just 48 of over 1,000 member firms had accredited entities under the criterion, including 13 jewelers. The Chain-of-Custody Standard needs firms to develop docudrama proof of organization purchases along the supply chain and to confirm they are not triggering adverse impacts in conflict-affected and high-risk locations.


Instead, firms are allowed to select some "entities" under their control for certification, leaving various other entities of a company uncertified. While this may enable firms to gradually switch over to more accountable sourcing methods, the existing technique also carries the danger that a whole business appreciates the reputational benefit when the majority of operations is not in compliance with the requirement.


All RJC member business need to undertake an audit to show that they are certified with the Code of Practices, and to obtain qualification. Those firms that pick to get qualification for the Chain-of-Custody Standard have to undergo a separate audit. Audits are based largely on a review of the company's written policies and documentation, and visits to a "representative collection" of centers.

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It is not a thorough assessment concerning whether the firm in fact applies or follows its plans throughout its procedures. Huge firms might have operations in several countries, and rely on many suppliers, but still may get RJC certification based on brows through to only a few facilities under its direct control without any type of assessment of lots of others.


Audits are intended to consist of questions on a broad range of human rights, auditors are not constantly qualified human rights experts (black diamond jewellery). As soon as the auditors finish their report, they just submit a summary record of the audit to the RJC, not the full audit record, which is shared only with the company




While labor abuses prevail in the industry, artisanal mines provide earnings for numerous workers and countless mining areas. Civil rights Watch thinks that the jewelry market must strive to make sure that their initiatives to mitigate supply chain human legal rights dangers do not lead them to merely exclude all artisanal distributors from their supply chains as the "course of least resistance." Rather, they need to support efforts to formalize and professionalize artisanal mines and enhance functioning problems.


The OECD Charge Persistance Assistance acknowledges this and is advertising cost-sharing within the industry. In this way, all business along the supply chain share the economic worry. A variety of efforts have actually arised that can assist jewelry experts map their gold and diamonds to mines of origin, and much more properly source from the artisanal field.

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About 600 adult miners have been registered at 6 mine sites; kids can not register. Accreditation of details mines against responsible sourcing standards can supply jewelry experts with better guarantee that the gold or rubies they purchase from those mines are not tainted by human rights abuses. Nongovernmental organizations such as Solidaridad and IMPACT can play an essential function in supporting mines to improve practices so they are able to comply with the standard; this may consist of actions to deal with kid labor, enhance environmental conduct, access finance, and establish straight call with purchasers.


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Two standardscertify artisanal and small-scale golden goose that conform to human rights, labor legal rights, and ecological standardsthe Fairmined Requirement and the Fairtrade Gold Criterion. Both call for anonymous third-party audits of specific mines. The Fairmined Standard was introduced by the Alliance for Responsible Mining (ARM) in 2014. Depending on the client's permit with Fairmined, the gold may be completely deducible to the mine of beginning, or might be blended with various other gold.




This quantity is simply a tiny portion of the gold utilized annually by several of the companies taken a look at in this report. As of very early 2018, 8 mines in 4 nations (Bolivia, Colombia, Mongolia, and Peru) were licensed, with an added 20 mining companies working towards certification. The Fairmined Gold Criterion is presently establishing a new "market access" criterion that seeks to aid artisanal gold mines in the process in the direction of complete certification.

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It is carried out under the umbrella of Fairtrade International, and permits jewelry experts to trace their gold back completely to the mine of beginning. Fairtrade's first qualified mines remained in Peru. Over the last couple of years, the Fairtrade Foundation, Solidaridad, and other NGOs performed a program of training and assistance to artisanal and small gold miners in Africa, and in early 2017, certified an artisanal gold mine in Uganda.

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