A PRACTICAL WAY TO INTRODUCE A WORLDWIDE JEWELRY ETHICAL TRADE SYSTEM

1. A PRACTICAL WAY TO INTRODUCE A WORLDWIDE JEWELRY ETHICAL TRADE SYSTEM RAPAPORT FAIR TRADE JEWELRY CONFERENCE Presented by: Edward Boehm ICA Director

2. ICA 568 Members in 44 Countries

3. Our Locations Head Office New York Europe Bureau Idar-Oberstein, Germany Asia Bureau Bangkok ...and ambassadors in 30 countries around the world

4. Corporate PROFILE ...promoting coloured gemstones worldwide 2009

5. InColor Magazine

6. World Mining Report World Gemmological Laboratory Directory

7. Website: www.gemstone.org

8. ICA Congress in Panyu, China 2009

9. ICA Congress- Panyu 2009

10. ICA Congress – Panyu 2009

11. ICA and Ethical Trade

12. The current working team: Andrew Cody ICA Immediate Past President Jean Claude Michelou ICA Vice President Edward Boehm ICA Director Professor Michael Hopkins Geneva University And just joining the team: Professor Donald Feaver & PhD StudentRoyal Melbourne Institute of Technology

14. The World Bank

15. Retailer Wholesale & Distribution Hundreds of Countries with a myriad of cultures and standards. CONSUMER

16. ? JEWELRY SUPPLY CHAIN What makes a mining operation Ethical? First Tier Large Scale Miners-Small Scale Miners Labor Issues Treatment Issues Environmental Issues Economic & Socio-Political Issues • Human Rights • Child Labor • Poor Wages • Safety Conditions • Community Benefits • Community Displacement • Disclosure • Safety issues-irradiation • Permanency of treatment • Environmental impact • Chemical pollution • Landscape scarring • Deforestation • Wildlife • Political • Terrorism • Smuggling • Money laundering

17. Over 200 Sovereign States • Different Cultures • Different Standards • Different Rules

18. Other Problems Associated with Implementing Ethical Trade Each of the previously mentioned issues will vary according to : • Different Products- Gemstones & Metals • Different Supplier Countries • Different Cultures • Different Economic Structures • Different Labor Standards

19. Ethical Trade Issues Facing First Tier - Mining • Labor Issues • Environmental Issues • Economic & Socio-Political Issues • Treatments • Human rights • Child Labor • Poor Wages • Safety conditions • Displacement of communities • Chemical pollution • Landscape scarring • Deforestation • Wildlife displacement • Political instability • Terrorism • Money laundering • Smuggling • Disclosure • Safety issues

20. Labor Issues • Human rights • Child Labor • Poor Wages • Safety conditions • Displacement of communities

21. Environmental Issues • Chemical pollution • Landscape scarring • Deforestation • Wildlife Displacement

22. Economic & Socio-Political Issues • Political Instability • Terrorism • Money Laundering • Smuggling

23. Large mining concerns are easier to regulate

24. However, there are millions of artisanal miners

25. Responsible Jewelry Council Members • Mining • AngloGold Ashanti • Arslanian Freres NV • Bonas & Co. Ltd • Dalumi Diamonds • Diarough N.V. • Dimexon Diamonds • HRA Investments Ltd • I.Hennig & Co. Ltd • Lazare Kaplan International Inc. • Overseas Dimaonds NV / Isee2 • Rosy Blue N.V. • Rothschild Diamonds Ltd • Sima Diamond NV • Steinmetz • Suashish Diamonds • Trade Associations • The American Gem Society • British Jewellers Association • Jewellers of America • Manufacturing Jewelers and Suppliers of America Inc. • National Mining Association • The National Association of Goldsmiths • World Gold Council • Service Industries(inc. financial institutions) • Int. Diamond and Jewellery Group ABN-AMRO • The Assay Office

26. Responsible Jewelry Council Members cont’d • Jewellery Manufacturing or Wholesale • DN Gems Corp • Gabriel & Co • Jaeger-LeCoultre • J.B. Jewelry • Leo Schachter Diamonds LLC • Libman & Company Ltd • Kristall Inc. • Regal Imports Ltd • Robertso Coin • Stubbs and Co • Gold Refining Hedging or Trading • Argor-Heraeus SA • Metalor Tchnologies SA • PAMP SA • PX Precinox SA • Valcambi SA • Jewellery Manufacturing or Wholesale • AR & AR Jewellery Inc • Aurafin LLC • Baume & Mercier • Boite D’Or Gioielli S.R.L. • Carrera y Carrera • C&J Jewelry • Cendres+M&eacute:taux SA • Christian Bernard • Colormasters Gem Corp • Cristofol Paris

27. Responsible Jewelry Council Members cont’d • JCPenney • Jewellery By Varouj Inc • Larter and Sons • Leber Jeweler Inc. • Lux Bond & Green • Marissa D. Harvey • Montblanc • Moet Hennessy – Louis Vuitton • Nicholas James • Piaget • Precious Metals • Reis-Nichols Inc. • Signet Group plc. • Simms II Jewelers • Tiffany & Co. • Transparence S. A. • Van Cleef & Arpels • WhiteFlash.com • Zale Corporation • Retail • Argos Ltd • Ben Bridge Jeweler • Borsheims • Boucheron • Brown Goldsmiths • Bulgari S.p.A • Cartier • Chanel Horlogerie/Joaillerie • Day’s Jewellery • Element Jewellery • Gomez & Molina Joyeros • Goodmans Jewelers Inc • Hamilton Jewellers • Harriet Kelsall Jewellery Design Ltd • Harry Winston • H. Cunningham Fine Jewelry Inc. • Helzberg Diamonds • Ice cool.co.uk Current membership is approximately 100 organizations

28. Current RJC membership is approximately 100 members But there are at least 5 Million people involved in the jewelry industry worldwide

29. The people who suffer in the producing countries can’t afford to wait … Let’s work together to make Ethical Trade a reality

30. What is the basis of the ICA proposal?

31. ? World Jewellery Confederation ETHICAL TRADER RETAILER CAT 3 2009

32. Global Reach

33. Advice & input from NGO’s and Ethical Trade initiatives to advise on standards UNDP World Bank ARM CASM No dirty gold IRMA JETS ADMINISTRATION DDI End Poverty JETS operations & management International & National Associations with approved Code of Ethics (potentially 100 associations) Wholesale and Retail members receive accreditation Consumer Confidence

34. Work together with industry organizations that already have established ethical guidelines JAA Code of Ethics Examples of Industry Codes of Ethics at work: • International Colored Gemstone Association • Thai Gem & Jewellery Traders Assocation • Gemological Institute of America • Gemmological Association of Australia • Jewellers Association of Australia • Japan Jewellery Association • American Gem Trade Association • The Gemmological Association of Great Britain • British Jewellers Association • ETC TGJTA Code of Ethics Colored Diamond Association Code Of Ethics AGTA Code of Ethics ICA Code of Ethics Japan Jewellers Association Code of Ethics

35. Ethical Trade Initiatives No Dirty Gold Ethical Metalsmiths Kimberly Process DDI ARM IRMA CASM CRJP MINE _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ PROCESSING _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ WHOLESALE _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ RETAIL _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ Most initiatives do not have a solid connection or link with the retailer which would ensure a conduit for ethically certified products from mine to market

36. The JET System would create openings for certified products to the consumer It would also recognise approved product certification of many other initiatives Examples... Certified Ethical product Certified Ethical product Certified Ethical product Certified Ethical Product World Jewellery Confederation Recognised by CIBJO JETS program CRJP Retailer Manufacturer JETS Retailer Ethically Aware Consumer

37. World Jewellery Confederation ETHICAL TRADER RETAILER 2009 World Jewellery Confederation World Jewellery Confederation ETHICAL TRADER MINER 2009 ETHICAL TRADER MANUFACTURER 2009

38. Benefit the Consumer

39. Benefit the Retailer

40. Benefit the Cutter, Manufacturer, & Wholesaler

41. Benefit the Miner & Local Population