Editor’s Note
This article examines the persistent challenge of traceability within the Swiss watch industry, highlighting a 2023 WWF report that found significant transparency gaps in the sourcing of precious metals like gold.
The Swiss luxury watch industry is a global benchmark for craftsmanship, precision, and prestige. But where do the raw materials used to make Swiss watches—especially gold—actually come from? Finding a clear answer is not simple.
Many Swiss watchmakers still struggle to trace the origin of the precious metals they use. A 2023 report by the non-governmental organization WWF revealed a lack of transparency even among some of the industry’s most successful brands. This absence of clear answers raises concerns about environmental damage, labor rights violations, and greenwashing.
The main reasons for this situation: the nature of the gold industry makes traceability mechanisms exceptionally complex and costly. And for most watchmakers, it is not a priority investment area.
Globally, about one-third of all gold is refined and processed in Switzerland, and the watch and jewelry industry accounts for nearly 50% of global gold demand. However, tracing the origin of gold remains a complex challenge that most watch brands are not yet prepared to tackle.
Due to its fungibility, illegal gold frequently flows into the precious metals market. “Look at the export data from South American countries like Colombia, and you’ll see that the amount of legally mined gold does not match the export volume. The export volume is much higher,” says Lipsky. “That’s because a significant amount of illegal gold is also being exported.”
WWF assessed 21 renowned Swiss and international watch and jewelry brands in its 2023 sustainability ranking. The results showed that no manufacturer was rated at the highest “visionary” level, and only a few brands received an “ambitious” rating. The vast majority of brands are still unable to ensure full traceability of key raw materials like gold, diamonds, and platinum.
This opacity carries significant risks. Much of the gold used in watches comes from regions with weak environmental laws, widespread deforestation, and prevalent child labor. According to the WWF report, “mining one ton of gold generates about 100,000 tons of waste rock. That means to produce a 10-gram gold ring, 1,000 kilograms of earth must be excavated.”
Facing increasing pressure, many brands are focusing on using “recycled gold” to meet consumer expectations for sustainability. However, the definition of “recycled and reclaimed” is very broad. The WWF report warns that there is currently no unified industry standard for defining recycled gold, which opens the door to greenwashing.
This ambiguity can mislead consumers. According to expert Sabrina Karib, who previously worked with refineries and founded the Precious Metals Impact Forum (a multi-stakeholder platform for the gold industry), much of what companies call “recycled gold” has never actually left the supply chain—meaning it is gold that has never been used by consumers.
According to the WWF report, “currently, gold is considered recycled if it has been processed once after being extracted from primary ore.” To eliminate this gray area, Sabrina Karib’s team has proposed a new standard for the industry, limiting the term “recycled” to materials that would otherwise have been discarded, such as gold from old electronics. Simultaneously, they encourage using the term “reprocessed” for circulation within the luxury industry itself.
To date, the definition she and her team proposed has not been adopted by the industry.
A young watch brand is taking a different path in this context. “We made a radical choice to completely exclude the mining of gold and diamonds,” explains Nicolas Freudiger, co-founder of the Geneva-based brand ID Genève. “We firmly believe that if we cannot avoid all the negative impacts of ‘problem gold,’ the most responsible choice at the moment is not to engage in this field at all.”
Instead, the brand uses recycled steel and carbon-based materials developed in collaboration with a Swiss biotech company for production. Their watches feature self-healing carbon resin and are imprinted with the slogan “Vos convictions à votre poignet” (Your convictions on your wrist).
In terms of regulation, Switzerland lags behind the European Union. After the 2020 “Responsible Business Initiative” was narrowly rejected in a referendum, the Swiss parliament passed a relatively lenient counter-proposal: Swiss companies must declare “conflict minerals” or “minerals posing a risk to human rights” in their products, but the law does not require these companies to conduct in-depth checks or hold them accountable for violations committed abroad.
In contrast, the EU’s Conflict Minerals Regulation (in effect since 2021) requires importers of gold and other conflict minerals to fulfill binding due diligence obligations, tracing back to the mine. The upcoming EU Corporate Sustainability Due Diligence Directive (CSDDD) requires large companies operating in the EU to monitor and prevent environmental and human rights violations throughout their supply chains.
Yves Bugmann, President of the Federation of the Swiss Watch Industry, stated: “The watch industry is a strategic sector for Switzerland, so we must be impeccable.” However, as of mid-2025, relevant Swiss legislation remains limited, and legal enforcement is weak.
Research shows that consumers are increasingly demanding “social responsibility” from luxury brands. A 2023 Deloitte study on the Swiss watch industry found that 34% of consumers buy watches based on a brand’s “sustainability,” while only 25% prioritize “brand image.” Among younger generations, ethical values are becoming more important than brand image.
Despite growing consumer demand for product sustainability, their understanding of specific issues like gold sourcing remains very limited. The WWF report notes that many brands still do not publish detailed information about their gold supply chains.
In the absence of transparency, customers may believe that the gold in their watch is “responsibly sourced,” even if the brand itself cannot confirm its origin.
Without information disclosure or stricter regulation, consumer trust is often based on assumptions rather than facts. She believes that, in the long run, a lack of transparency and sustainability measures could damage trust in the quality of Swiss watches.