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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 />

<strong>May</strong> <strong>2022</strong> | 45

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