Jeweller - May 2022
A new era: The pearl industry has been strengthened by adversity Responsibly sourced: Retailers want to provide it, but what does it really mean? Crystal ball: In order to predict trends, we learn from the past
A new era: The pearl industry has been strengthened by adversity
Responsibly sourced: Retailers want to provide it, but what does it really mean?
Crystal ball: In order to predict trends, we learn from the past
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Underground silver miner, Cerro Rico, Bolivia.<br />
Meat vendor, artisanal gemstones miner, Karakorum Range, Northern Pakistan.<br />
And these challenges pervade the entire responsible<br />
sourcing sector, whether that involves the RJC, WDC<br />
or CIBJO. The legislation and codes of conduct are<br />
only as tight as the interest groups controlling them<br />
will allow.<br />
If you have powerful vested interests fighting you the<br />
entire way, the chances are that legislation or codes of<br />
practice will tend to offer leniency towards those same<br />
interest groups. At the same time, they will block every<br />
nook and cranny for those without sufficient resources<br />
to fight their case.<br />
To see this logic in practice, it is instructive to look at<br />
the EU CAHRA legislation that came into effect on 1<br />
January 2021. This legislation was released with much<br />
fanfare and is still trumpeted by the international<br />
responsible sourcing groupies as being the high-water<br />
mark in global responsible sourcing legislation.<br />
The legislation followed the OECD Due Diligence<br />
Guidance, however, when the legislation was<br />
published, it applied only to the 3Ts and G - the 3Ts<br />
being tin, tantalum and tungsten and the G being gold.<br />
A senior OECD official recently wrote to me and said<br />
that the Guidance was limited to these minerals<br />
because it takes time to get the industry prepared.<br />
That’s accepted, but I pointed out and suggested<br />
to him that the draft legislation was first produced<br />
in 2017 and that the responsible sourcing push by<br />
legislators around the world had been happening<br />
since the Obama administration began in 2010.<br />
Further, that the OECD Guidance was originally<br />
finalised in 2013.<br />
How much ‘time’ is enough? And how much time<br />
should be enough?<br />
This is to assume that the participants involved are<br />
genuine about the process and not merely virtue<br />
signaling. A mounting body of platitudes and evidence<br />
seems to support the latter.<br />
The apparent lunacy of it all is then amplified by<br />
the fact that the EU CAHRA legislation has no<br />
enforcement or penalty provisions and that any<br />
changes to this may be considered when a review of<br />
the legislation is slated for 2023 or 2024.<br />
To quote responsible sourcing consultants and risk<br />
management firm, Achilles, when the new CAHRA<br />
legislation was published: “Both the law in the US<br />
and EU currently lack any real teeth. However, it<br />
is expected that sanctions or penalties could be<br />
introduced in Europe at a later stage if little progress<br />
is made, potentially following its first review in 2023.”<br />
[Emphasis added].<br />
Biggest question for retailers<br />
This brings us all the way back to the original<br />
question: How can I do ‘good’ and buy responsibly<br />
sourced jewellery?<br />
If I’m being honest, I still can’t answer that question.<br />
Clearly if you’re a member of the JAA or RJC then<br />
there will be some obligations that you will need to<br />
follow.<br />
If you have powerful vested interests fighting<br />
you the entire way, the chances are that<br />
legislation or codes of practice will tend to offer<br />
leniency towards those same interest groups.<br />
However, whether there are penalties for failing to do<br />
so is another question entirely. On the other hand, if<br />
you’re not a member, it’s pretty much happy days – do<br />
what you like!<br />
Regardless of whether you are a member of the JAA<br />
or RJC or not, then in my view it matters not as to<br />
whether the gemstones you are buying have been<br />
bought responsibly. What really matters is visiting<br />
the communities where the resources are produced<br />
and building some sense of understanding as to what<br />
positives or negatives will come from your buying<br />
decision.<br />
No matter how hard people try to package up and<br />
present responsible sourcing as the solution to<br />
difficult problems around the world, these things still<br />
come back to the same things as they always have.<br />
The big guys write the rulebook and the little guys get<br />
pushed around and kicked out.<br />
If legislators around the world were serious about<br />
responsible sourcing in the minerals industry there<br />
would be no exclusions by legislators for any mineral.<br />
The rules would be enforced equally whether breaches<br />
relate to the artisanals or the largest companies.<br />
At the moment this isn’t happening.<br />
There is a reason that not all minerals fall within<br />
legislation and COP guidelines and it’s because some<br />
people are more powerful than others. And as many<br />
times as they may say it, this has nothing to do with<br />
legislators and policy-makers not having had enough<br />
time to get it right and everything to do with politics<br />
and influence.<br />
I believe that the existing system that has arisen is<br />
fundamentally flawed and will never be fixed. But<br />
that’s a discussion for another time.<br />
In the meantime, you may now be wondering whether<br />
‘responsibly sourced’ includes enormous profits<br />
being repatriated back to wealthy countries from<br />
impoverished countries or, if it means giving some of<br />
the poorest families in the world the chance to survive<br />
and prosper?<br />
Whatever your intent, I wish you all the best in<br />
trying to ensure your responsibly sourced jewellery<br />
and gemstones are actually ‘responsibly sourced’,<br />
depending on what that means to you, and your<br />
customer.<br />
Good luck!<br />
HUGH BROWN has dedicated the past 15 years<br />
to a publishing project about artisanal miners.<br />
The book – The Garimpeiros Project aims to<br />
raise the profile of the world’s poorest miners,<br />
and to educate rich and powerful about the<br />
value they bring- hbrownofficial.com/msp<br />
He is active on Facebook at HUGHBROWN9<br />
or linkedin.com/in/hugh-brown-37a73132<br />
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