LBMA & RJC Responsible Gold Forum OECD Due Diligence Implementation Iris Van der Veken, Manager Corporate Affairs Global 3 September 2013
Agenda 1. About Rosy Blue 2. Our vision on sustainability 3. Downstream OECD due diligence implementation 4. Challenges ahead
1. 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 4
Rosy Blue Business Alliance 5
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 FORMATION AND EXPLORATION MINING SALES ROUGH WHOLESALE DIAMOND MANU- FACTURING POLISHED WHOLESALE JEWELLERY WHOLESALE AND MANU- FACTURING RETAILERS CONSUMERS DE BEERS ALROSA-- ROSY BLUE BUSINESS ALLIANCE OPERATIONS 6
2. Our vision on sustainability
Determination of material issues Respect for Human rights and children s rights Working conditions Product integrity Environment 8 Community
Our roadmap 2016 Demonstrate leadership in the diamond and jewellery industry Balancing economic growth with social and environmental responsibility 9
Beyond legal requirements General CSR initiatives Industry wide initiatives UN Global Compact Lead Responsible Jewellery Council : Full scope certified Proprietary corporate initiatives 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 10
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 11
Reporting to stakeholders 12
3. Downstream OECD due diligence implementation
Times have changed Sphere of influence UN protect, respect and remedy framework Business has the responsibility to respect within its sphere of influence Direct and indirect influence Company and staff Suppliers and Sub-contractors Communitie s Wider society 14
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. 15
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. 16
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 17
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! 18
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 19
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 20 Outcome detailed mapping of our supply chain including bottlenecks internal understanding of impact start draft policy
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 21 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 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 22 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
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 23
Reporting framework new portal for 2013 24
Home x 25
Responsible Supply Chain x 26
Self Assessment x 27
Self Assessment x 28
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 29
Thank You!
The man who removes a mountain, begins by carrying away small stones Chinese proverb 31