LBMA & RJC Responsible Gold Forum Van der Veken.pdfLBMA & RJC Responsible Gold Forum OECD Due...

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LBMA & RJC Responsible Gold Forum OECD Due Diligence Implementation Iris Van der Veken, Manager Corporate Affairs Global 3 September 2013

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Agenda

1. About Rosy Blue

2. Our vision on sustainability

3. Downstream OECD due diligence implementation

4. Challenges ahead

About Rosy Blue

About the Rosy Blue Business Alliance

Established in 1960 (Mumbai, India), 1973 (Antwerp, Belgium)

Composed under two legal entities

► Rosy Blue (I): 22 entities in 3 countries; 3000 employees;

0.7bn dollar turnover 2012

► Rosy Blue (NI): 28 entities in 13 countries; 2500 employees;

1.6bn dollar turnover 2012

► 26 nationalities

► Driven by core values

► Diversity

► Accountability

► Integrity

Focus on sustainable growth

RJC certified in 14 countries

Rosy Blue Business Alliance

Rosy Blue operations

• Procurement and sales of rough diamonds

• Diamond manufacturing/polishing

• Procurement and sales of polished diamonds

• Jewelry manufacturing

• Jewelry sales

• Strategic partnerships with brands

DE BEERS – ALROSA-- ROSY BLUE BUSINESS ALLIANCE OPERATIONS

FORMATION

AND

EXPLORATION

MINING SALES ROUGH

WHOLESALE

DIAMOND

MANU-

FACTURING

POLISHED

WHOLESALE

JEWELLERY

WHOLESALE

AND

MANU-

FACTURING

RETAILERS CONSUMERS

Our vision on sustainability

Determination of material issues

Respect for Human rights

and children’s rights

Working conditions

Product integrity

Environment

Community

Our roadmap 2016

Demonstrate leadership in the diamond and jewellery industry

Balancing economic growth with social and environmental responsibility

Beyond legal requirements

General CSR initiatives Industry wide

initiatives

Proprietary corporate

initiatives

UN Global Compact

Lead

Responsible Jewellery

Council : Full scope –

certified

Rosy Blue Internal CSR

Model

Best Practice Principles

Wal-Mart

SA 8000

Etc

The Rosy Blue Quality Management Systems

are integrated in all our operations

Audit results

1.Bribery & Facilitation

2.Money Laundering & Finance of Terrorism

3.KP & SoW

4.Product Security & Integrity

5.Child Labour & Forced Labour

6.Freedom of Association

7.Discrimination

8.Health & Safety

9.Working Hours & Remuneration

10.General Employment Terms

11.Environmental Compliance

12.Management Systems & Legal Compliance

13.Community Engagement

Reporting to stakeholders

Downstream OECD due diligence implementation

Times have changed

UN protect, respect and remedy framework

Business has the responsibility to respect within its

sphere of influence

Sphere of influence

Wider

society Communitie

s

Suppliers

and

Sub-contractors

Company and

staff

Direct and

indirect influence

Definition European Commission (1)

The responsibility of enterprises for their impacts on

society.

Enterprises should have in place a process to integrate

social, environmental, ethical, human rights and

consumer concerns into their business operations and

core strategy in close collaboration with their stakeholders.

Definition European Commission (2)

With the aim of

► maximising the creation of shared value for their

owners/shareholders and for their other stakeholders

and society at large;

► identifying, preventing and mitigating their possible

adverse impacts.

Internationally recognised CSR guidelines and principles

The core five:

OECD Guidelines

UN Global Compact

ISO 26000

ILO labour standards

UN Guiding Principles on Business and Human Rights

Gold - Dodd-Frank Act, section 1502

Impact for RB - holistic approach - as part of a broader

sustainability journey

Supply chain due diligence is a step by step process

Process of continuous improvement

COLLABORATIVE APPROACH

Guidance and support of appointed expert team Signet !

Key milestones in the process

1. Q2- 2011- CEO Meeting and appointment core team

Dodd Frank

Reporting line CEO- BUDGET ALLOCATED

Officer for legal compliance

Officer for production

Officer for purchase of metals & alloys

Officer responsible for accounts

Officer HR for training and awareness

INTERNAL ACCOUNTABILITY

2. Q2- 2011- INTERNAL ANALYSIS

Where are 3TG metals being used in our products and

processes? Where is gold being used? Traceable?

Key sources • Pure gold purchased

• Sales returns/consignments

• Scrap jewellery

• Purchase of findings

• Alloys

In house manufacturing and contract manufacturers

process flow

Outcome – detailed mapping of our supply chain including

bottlenecks – internal understanding of impact – start draft

policy

Internally - STRENGHTEN ENGAGEMENT

• Face to face meetings with core team

• Training employees

Externally - STRENGHTEN ENGAGEMENT WITH SUPPLIERS

AND CUSTOMERS

• Weekly calls with Signet

• Face to face meetings with all the bankers and vendors

• Open discussion

• On site visits

• Top meeting Signet with all parties involved

• Training suppliers

Outcome - relationship building of trust

• Transparency on good practices and bottlenecks

• Better understanding of the complete supply chain for all

parties involved

• Consensus on supporting evidence

3. Communication processes internally and externally developed

Internally - STRENGHTEN ENGAGEMENT

• Face to face meetings with core team

• Training employees

Externally - STRENGHTEN ENGAGEMENT WITH SUPPLIERS

AND CUSTOMERS

• Weekly calls with Signet

• Face to face meetings with all the bankers and vendors

• Open discussion

• On site visits

• Top meeting Signet with all parties involved

• Training suppliers

Outcome - relationship building of trust

• Transparency on good practices and bottlenecks

• Better understanding of the complete supply chain for all

parties involved

• Consensus on supporting evidence

4. Established a helpdesk and a company grievance mechanism

5. Established a helpdesk and a company grievance mechanism

• The learning curve is challenging for vendors

• Capacity building takes time

• Industry approach is needed

• Benchmarking and reporting can be useful as long as it is not

too complicated

Reporting framework – new portal for 2013

Home Page

x

Responsible Supply Chain

x

Self Assessment

x

Challenges ahead

Reputation management- Industry needs to take leadership – education

is key !

Complex supply chain sustainability management- including all the small

players – link with government policy and actions-reward transparency

Collaborative strategy needed with Banks, NGO’s, Customers,

Suppliers- shared value

Brands and retailers seeking to move away from auditing toward

capacity building with their suppliers

Suppliers taking responsibility and “ownership” of their compliance

Mutual-recognition (equivalency) of credible industry corporate codes

and standards

Natural extension is certification – RJC

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Thank You!

“The man who removes a mountain,

begins by carrying away small stones”

Chinese proverb

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