Editor’s Note
This article highlights a significant shift in the jewelry industry, as Pandora commits to sourcing only recycled gold and silver. This move aims to reduce the environmental impact of mining, though it also presents new challenges for ensuring responsible sourcing within the recycling supply chain.
Reuters reported on the 29th (local time) that Pandora, the world’s largest jeweler by sales volume, will no longer use mined gold and silver, opting instead to use only recycled precious metals. Pandora, a jewelry company that originated in Denmark and is famous for its $65-$95 bracelets, purchases approximately 340 tons of silver and 1 ton of gold annually to manufacture its precious metal products. According to Pandora’s annual report, its supply chain emitted 264,224 tons of CO2 in 2022.
The company estimates that by switching to recycled metals instead of mined gold and silver, it can reduce its indirect CO2 emissions by 58,000 tons per year. This is equivalent to the carbon reduction effect of taking 6,000 cars off the road.
However, a drawback of recycled metal supply chains is that the gold and silver purchased through recycling could potentially be stolen goods from illegal transactions, and even if they are, their origin cannot be proven once melted down in the recycling process.
Therefore, to address this issue, Pandora has adopted the chain of custody standard developed by the Responsible Jewellery Council (RJC). Under this standard, gold coins and gold bars are excluded from the scope of gold purchased through recycling.
Pandora is investing approximately $10 million annually in this supply chain transition.
The Wall Street Journal reported on the 29th (local time) that Pandora plans to complete the transition to using 100% recycled gold and silver in its trademark bracelets, necklaces, and other products by the second half of 2024, about a year ahead of schedule.
Furthermore, Pandora requires its partners to document the origin of recycled silver and appoint independent auditors to evaluate the supply chain and recycled gold and silver according to the RJC’s standards.
Meanwhile, the recycled silver Pandora purchases comes from industrial catalysts, X-ray equipment, electronic devices, and old silver products. The recycled gold is sourced from jewelry manufacturing waste and old jewelry.
However, analysts say sourcing recycled silver is much more difficult than securing gold because the amount of silver being recycled is relatively small.
Due to this challenge, Pandora has collaborated with suppliers like Swiss metal refiner MKS PAMP to develop custom supply lines for recycled silver. MKS PAMP obtains most of its recycled silver from silver products and industrial by-products, including catalysts used in the chemical and petrochemical industries. MKS PAMP has established a separate process line for recycled materials to meet Pandora’s silver demand. Additionally, for diamonds, Pandora only sells synthetic diamonds produced using renewable energy.