Post on 30-May-2018
transcript
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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
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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
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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
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Determination of material issues
Respect for Human rights
and children’s rights
Working conditions
Product integrity
Environment
Community
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Our roadmap 2016
Demonstrate leadership in the diamond and jewellery industry
Balancing economic growth with social and environmental responsibility
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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
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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
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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
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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.
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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.
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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
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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 !
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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
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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
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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
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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
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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
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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