Industry leaders at the recently concluded CIBJO (World Jewellery Confederation) Congress 2024 underscored the need to meet sustainability targets amid heightened scrutiny and stricter legislation in key markets. The Congress took place from November 2 to 4, 2024 in Shanghai, China. 

CIBJO President Gaetano Cavalieri highlighted the importance of establishing responsible business practices to maintain consumer confidence.

“We believe passionately in the potential of the products we manufacture and sell, in the timeless beauty of the gems and precious metals of which they are comprised, and in the genius and artistry of the men and women who create the final products,” he said. “In our hearts we know that these are objects of great value. But we also understand that this value is maintained as a result of an unwritten contract between ourselves and our consumers. If we do not honour that contract, if we do not protect the trust they place in us, then the value of the jewellery – the prices, the revenues and profits – are all worth very little.

According to Edward Asscher, vice chairman of the Responsible Jewellery Council (RJC), consumers are increasingly influenced by the general economic situation in their countries and regions as well as changing environmental demands. 

“Uncertainty does not help consumer confidence. And all we do – selling jewellery, diamonds, coloured stones or watches – is about consumer confidence,” he remarked. 

Iris Van Der Veken, executive director of the Watch & Jewellery Initiative 2030 (WJI 2030), pointed to growing consumer awareness of sustainability issues. “Customers more and more are looking beyond creativity and design excellence to responsible sourcing of materials, carbon footprint reductions, nature and biodiversity impact, circularity and adherence to human rights and decent labour,” she disclosed.

World Diamond Council President Feriel Zerouki meanwhile urged companies to deliver on their sustainability pledges. She said, “’Cancel culture’ is what we should be most worried about. If consumers think that your business is striving for the highest standards, but you are not, you will be cancelled.”

For his part, International Colored Gemstone Association (ICA) President Damien Cody said the industry should provide full disclosure and consistent terminology to avoid further erosion of consumer confidence. Greenwashing should also be stamped out, and the focus should turn towards the positive aspects and romance of coloured gemstones, rather than their commoditisation.

“We should not allow others to set unreasonable goals for us,” Cody added. 

Regulations
Speakers also stressed the need to prepare for upcoming legislation designed to establish responsible supply chains.

Anghel Raluca, head of External Affairs and Industry Relations at the Natural Diamond Council (NDC), cited the Corporate Sustainability Due Diligence Directive (CSDDD) as one of the most important changes in the EU regulatory framework.

The CSDDD aims to foster sustainable and responsible corporate behaviour in companies’ operations and across their global value chains. This requires companies in the EU to take environmental and social responsibility for the action of their supply chain. 

The directive came into force in July 2024, and EU countries now have two years to adopt it in their national legislation. While initially covering larger organisations, the CSDDD will eventually be implemented more extensively.

Precious metal trader and refinery Italpreziosi has prepared an Empower Your Counterpart (EYC) guide to help partners meet the CSDDD requirements. Alice Vanni, the company’s CSR director and board member, said, “We need to make sure that our supply chain is ready. The challenge is having to change the mindset of someone not directly under your charge. We created the EYC in 2019 for internal use and then made it available to the trade in 2023 to help transform risks into opportunities.”

Over in the US, the Federal Trade Commission (FTC) is currently reviewing the Green Guides that govern environmental marketing claims. 

According to Sara Yood, CEO and general counsel at the Jewelers Vigilance Committee (JVC), the revised guidelines are likely to be released before year-end for industry review, feedback and eventual adoption.

-    Full report in JNA January-February 2025