Editor’s Note
This article highlights Tiffany & Co.’s latest sustainability report, detailing its CSR progress and commitments to environmental protection and ethical sourcing.
In its sustainability report released in August, Tiffany & Co., the major American jewelry retailer, reported on its CSR progress, environmental protection activities, and its efforts regarding the mining environment of raw materials such as diamonds and related social issues.
The company has set new goals, including achieving net-zero greenhouse gas emissions by 2050 and gradually transitioning to renewable energy.
This is part of a global initiative launched by The B Team, a group of business leaders advocating for a transition to a low-carbon economy. The B Team is a coalition of business leaders implementing “Plan B”—a business model that pursues profit while being kind to people and the planet, as opposed to the short-term profit-focused “Plan A.” Members include former Norwegian Prime Minister and WHO Director-General Gro Harlem Brundtland, Virgin Records founder Richard Branson, and Muhammad Yunus.
Furthermore, the company aims to eliminate deforestation from its key supply chains by 2020. With the cooperation of the Rainforest Alliance, Tiffany is working to manufacture its iconic blue packaging and catalogs using wood from sustainably managed forests and recycled paper.
The report also addresses the responsible sourcing of minerals like diamonds, outlining plans to strengthen supply chain management. The company has also joined the U.S. non-profit World Wildlife Trafficking Alliance, intensifying efforts to eliminate illegal products such as coral and ivory from its supply chains.
In 2014, the company pledged to adhere to the rules of the “No Dirty Gold” campaign by the non-profit Earthworks (Washington, D.C.), committing to investigating its gold supply chain, reviewing sourcing standards, and increasing the content of recycled gold. Tiffany currently directly verifies the origin of 99% of its precious metal raw materials with mines or recyclers.
Tiffany states that it knows all the mines and suppliers for its rough diamonds. Sourcing is conducted from countries participating in the Kimberley Process Certification Scheme (KPCS), which regulates the export of conflict diamonds.
Fifty-four countries and regions participate in the scheme, accounting for 99.8% of global diamond production. It is true that conflicts funded by diamonds have decreased due to this system. However, Tiffany argues that the scheme does not adequately address issues within the supply chain and that the definition of “conflict-free” needs to be revisited.
Zimbabwe and Angola are examples. Despite both countries participating in the KPCS, human rights abuses have been reported throughout their supply chains. Tiffany refuses to purchase from either country, whether rough or polished diamonds.
Additionally, the company implements the Diamond Source Warranty Protocol. Under this protocol, companies selling diamonds must certify that the polished diamonds set in their mounts were not purchased from these two countries.
Regarding the sourcing of other gemstones, the company acknowledges that it cannot guarantee the same level of traceability as for diamonds and precious metals, explaining that it is conducting investigations to implement transparency and responsible sourcing.