RJC Coloured Stones Consultation16 April 2018UBJOP, Paris

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Agenda

1. RJC

2. Background - our mandate and 2017 work

3. Overall COP review

4. Key COP changes on coloured stones

5. Next steps

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Vision and Mission

Notre vision: une chaîne d'approvisionnement responsable au niveau mondial, favorisant la confiance dans l'industrie joaillière et horlogère dans son ensemble.

Notre mission: devenir l’organisation de normes et de certification leader dans la promotion de l’intégrité et de la responsabilité dans la chaîne d’approvisionnement de la joaillerie et de l’horlogerie.

RJC stats – March 2018

75COUNTRIES

1093

739

8,900

457,462

MEMBERS

COP CERTIFIED MEMBERS

FACILITIES COVERED BY COP CERTIFICATION

EMPLOYEES COVERED BY COP CERTIFICATION

59 CoC CERTIFIED MEMBERS

Typologie des membres

Producers1%

Service industry1%

Retailers6%

Refiners6%

Diamond traders, cutters and/or polishers

36%

Manufacturers & wholesalers

50%

Typologie des membres

12 15 23 30 34

35 48

110

114

12

2

12

5 14

4

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7RJC MEMBERS ACROSS THE WORLD

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Les normes

Code de Pratiques (COP)• Définit les pratiques responsables environnementales, sociales et

éthiques des sociétés dans la chaine d'approvisionnement

• Diamants, or et métaux de platine

• Obligatoire

Chaîne de Traçabilité (CoC)• Définit les exigences pour la création d’une Chaîne de Traçabilité

• Or et métaux de platine

• Volontaire

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Background – our mandate

• Incorporation of coloured stones into the COP and

application across the supply chain from mine to

retail.

• Consistent COP requirements across RJC’s scope,

eg legal compliance, labour rights.

• Scope: initially sapphires, rubies and emeralds.

Consider whether/when to expand to all stones.

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2017 and 2018 work

• 2017

• Draft 0

• Standards Committee engagement

• New York, Paris, CSWG, one-to-one consultation

• ICA Congress

• CIBJO Congress

• 2018 (so far)

• Vicenza

• Tucson

• CSWG

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Current status

• What we heard from stakeholder consultation :

• Concerns with use of country of origin

description, differences in lab approaches to

analysis

• Misconceptions on what RJC does: eg, certifies

stones, requires full traceablity of stones

• Drafting changes to the COP and guidance for

coloured stones – Draft 1

• 2018: Incorporating coloured stones work into the

formal COP review process (ISEAL Code for

Standard Setting for transparency and engagement)

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Process for reviewing standards

1. Planning phase – what topics do we need to review?

• Log of issues, questions from helpdesk, non-conformances

• Publish a ‘Public Summary’ with plan for the review

2. Review and consultation phase – what changes will we

make?

• Commissioned and in-house research on key topics

• Consultation with members and stakeholders (workshops,

webinars, email campaigns)

• Draft of proposed changes

• Optional additional revised changes and consultation

3. Finalization phase

• Standards Committee, ExCo and Board

• Legal review

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• Complete

• Public Summary

• Comment report

Round 1: Review of scope10 July – 8 Sept 2017

• Public consultation from 16 April to 01 July

• Workshops from March - July

Round 2: changes to standard16 April – 01 July 2018

• Standards Committee decision to do Round 3 at July 24 call

• If yes, update timeline of COP review. Round 3 to run from 3 Aug to 3 Nov.

Round 3 (optional) Revise changes to standard

• Exco approval after 21 Nov, Board approval in December

Approvals: Approval and finalise17 Oct- 15 Dec 2018

Publication: Editorial review31 Jan 2019

Certification starts1 April 2018

COP review timeline

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Main proposed changes to COP

6. Human rights

X. (previously 6.2) Due diligence for responsible sourcing

7. Sourcing from Artisanal and Small-Scale Mining (ASM)

Y. (new) Sourcing recycled industrial precious metals

10. Know Your Counterparty for money laundering and finance of terrorism

14. Working hours

15. Remuneration

16. Harassment, discipline, grievance procedures and non-retaliation

24. Wastes and emissions

25. Use of natural resources

26. Product disclosure – this includes a new requirement on undisclosed

synthetic diamonds

28. Grading, analysis and appraisal

30. Community Engagement

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Coloured stones changes

o Scope & Terminology

o Due diligence

o ASM (COP 7)

o Product disclosure (COP 26)

o Grading analysis and

appraisal (COP 28)

Note: The RJC would like to thank the

working group under the Dragonfly Initiative

for sharing material and providing input

which has informed the changes to the COP.

* Photo from Gem-A – display

‘Somewhere In The Rainbow’

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Scope

• The number of coloured gemstones is extremely varied.

RJC’s aim is to include all of them within the scope of the

COP.

• Stepwise approach to test the application of COP

certification.

• The scope of coloured gemstones in 2018 COP is rubies,

sapphires and emeralds.

• Once a review and assessment of the implementation

findings has taken place, the scope will be expanded to

include all other gemstones. This second phase will take

place within two years of the launch of the updated COP

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COP X. (formerly COP 6.2) Due Diligence for

responsible sourcing

X.1 Members shall adopt and communicate to their suppliers a supply

chain policy with respect to sourcing from conflict-affected and high-

risk areas. The policy shall be consistent with Annex II of the OECD

Due Diligence Guidance for Responsible Supply Chains of Minerals

from Conflict-Affected and High-Risk Areas (the “OECD Guidance”) or

other due diligence frameworks as identified by RJC.

X.2 Members shall exercise due diligence over their supply chains in

accordance with the OECD Guidance, or other due diligence

frameworks as identified by RJC, in ways appropriate to their size and

circumstances.

a. Members in the gold value chain shall implement the

recommendations of the OECD Guidance Supplement on Gold

as applicable to their operations.

b. Members in the diamond supply chain shall exercise due

diligence in ways consistent with the Kimberley Process

Certification Scheme and World Diamond Council System of

Warranties.

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ASM

Sourcing from ASM

7.1 Members that source diamonds, gold, PGM, coloured

gemstones, and/or silver directly from ASM producers that are not

under their control shall:

a. Regularly assess risks of forced labour, worst forms of child

labour, gender inequalities, unsafe working conditions, uncontrolled

mercury use, and other significant environmental impacts, and […]

Guidance will include tools for sourcing from ASM such as:

The Alliance for Responsible Mining (ARM)’s Code of Risk

mitigation for Artisanal and small-scale mining engaging in

Formal Trade (CRAFT) tool as a framework for assessing risks and

positively influencing ASM practices.

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Product disclosure

26.1 Members shall not make any untruthful, misleading or deceptive

representation

26.1 Members shall apply the following requirements

c. Treated colourd gemstones shall be disclosed as either “treated” or

with specific reference to the particular treatment

d. Synthetic (or artificial) coloured gemstones shall be disclosed as

“laboratory created”, “laboratory grown”, and/or “synthetic”. This

applies to reconstructed and composite coloured gemstones.

e. Simulants of (or imitation) coloured gemstones shall be disclosed

as the mineral or compound that they are

f. If describing the quality of polished coloured gemstones – this shall

be in accordance with recognised guidelines.

g. Place of origin for coloured gemstones: When describing the

place of origin of a stone, information on how this was determined

shall be disclosed. The place of origin shall only be used when it

denotes an area where gemstones have been mined.

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Grading, analysis and appraisal

28.2 Members that generate place of origin reports for coloured

gemstones shall have systems in place to ensure the consistency of

the determination of origin. They shall also carry out detection of

treatments and synthetics as part of the determination.

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What about leadership initiatives on responsible

sourcing?

12 Provenance claims

12.1 Members that make a provenance claim(s) shall have systems

in place to ensure that the provenance claim(s) is valid and

supported by evidence. The systems shall include:

a. Documented criteria or requirements that are compatible with

the provenance claim(s);

b. Procedures for record keeping and verification that the criteria or

requirements are met;

c. Controls to maintain the integrity of the materials covered by the

provenance claim(s);

d. Training to ensure that employees who are responsible for

responding to product inquiries understand the provenance

claim(s) and can explain them accurately;

e. A complaints or grievance mechanism appropriate to the nature,

scale and impact of the business, to allow interested parties to

voice concerns about the veracity of the provenance claim(s).

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2018 COP consultation plan