Editor’s Note
This article highlights ongoing concerns in the jewelry industry’s supply chains. While progress in responsible sourcing is noted, significant gaps remain in ensuring products are free from human rights abuses, a challenge amplified by the pandemic.
(London) – Human Rights Watch released a report today ahead of the holiday shopping season, stating that while major jewelers have improved their methods of sourcing gold and diamonds, most still cannot assure consumers that their purchased jewelry is free from the stain of human rights abuses.
The 84-page report, “The Hidden Cost of Jewelry: Human Rights in Supply Chains and the Responsibility of Jewelry Companies,” investigates and ranks the effectiveness of 15 jewelry and watch brands in preventing human rights abuses and environmental damage in their gold and diamond supply chains. Human Rights Watch conducted a detailed review of these companies’ actions since its first report on this issue in 2018. Although most of these jewelers have taken some improvement measures, the majority have failed to meet international standards.
Human Rights Watch also assessed the impact of COVID-19 on the mining and jewelry industries. Many mines were closed due to lockdown policies, leading to a sudden loss of income for mining workers, their families, and communities. In large mines that remained operational, miners faced high risks as they gathered in confined spaces during work and sometimes lived together in hostels afterward. In small-scale mines, the proportion of child labor increased, and illegal mining and trading became more prevalent.
Human Rights Watch conducted in-depth investigations in countries where improper business practices harm supply chains. In Venezuela, armed groups known as “syndicates” control illegal gold mines, terrorizing residents and miners with punitive amputations and torture. In Zimbabwe, the state-owned Zimbabwe Consolidated Diamond Company employs private security guards who abuse residents suspected of illegal diamond mining, including attacks with fierce dogs. Small-scale gold mines in Ghana, Mali, the Philippines, and Tanzania employ children in hazardous work, exposing them to mercury used in ore processing. Some children have died in mining accidents.
According to the UN Guiding Principles on Business and Human Rights, jewelry and watch companies have a responsibility to conduct human rights and environmental due diligence to ensure they do not cause or contribute to human rights abuses in their supply chains. “Due diligence” refers to the process by which enterprises identify, prevent, mitigate, and account for the human rights and environmental impacts of their supply chains.
The 15 companies assessed have a combined annual revenue of over $40 billion, accounting for 15% of global jewelry sales. Nine companies provided written responses to requests for information on their sourcing policies and practices: Boodles, Bulgari, Cartier, Chopard, Chow Tai Fook, Pandora, Signet, Tanishq, and Tiffany. Six companies did not respond despite multiple requests: Christ, Harry Winston, Kalyan, Mikimoto, Rolex, and TBZ. Human Rights Watch based its assessment on information provided by the companies or publicly available.
Among the assessed companies, 11 have taken measures to strengthen human rights due diligence since the 2018 report, “The Hidden Cost of Jewelry: Human Rights in Supply Chains and the Responsibility of Jewelry Companies“. These companies have improved the traceability of their gold or diamond production processes; limited sourcing to recycled gold to avoid risks associated with newly mined gold; strengthened supplier codes of conduct; screened suppliers more rigorously; or disclosed supplier information. Ten of these companies have expanded public disclosure of their due diligence information to ensure respect for human rights.
Nevertheless, most companies have not identified the mining sources of their gold or diamonds, nor have they assessed and addressed issues at mines or other points in their supply chains. Very few appear to have assessed COVID-19 risks in their supply chains or actively worked to protect the rights of workers beyond their direct employees.
Most companies also do not provide detailed reports on their due diligence efforts. Four companies—Kalyan, Mikimoto, Rolex, and TBZ—have never or rarely published information about their sourcing policies or practices. This lack of transparency violates international standards on responsible sourcing and prevents consumers, affected communities, and the public from learning about potential abuses.
According to Human Rights Watch’s assessment, none of the 15 companies achieved an “excellent” rating. Only two companies—Tiffany and Pandora—received a “good” rating for taking significant steps toward responsible sourcing. Three companies—Boodles, Chopard, and Harry Winston—were rated “fair.” Chow Tai Fook, Christ, and Tanishq were rated “poor,” while four others—Kalyan, Mikimoto, Rolex, and TBZ—were not rated due to failure to disclose sourcing policies. Five companies improved their ratings in 2020 compared to 2018: Pandora, Boodles, Chopard, Harry Winston, and Tanishq.
Human Rights Watch also evaluated several broader industry or multi-stakeholder initiatives, including the Responsible Jewelry Council and the Initiative for Responsible Mining Assurance. Additionally, several initiatives attempt to use technology—such as blockchain and laser technology—to ensure diamonds and other minerals are fully traceable.
However, the strength and transparency of most existing certification initiatives remain insufficient. Many initiatives still do not require their members to achieve full traceability, transparency, or robust on-site human rights assessments. Third-party audits of jewelry supply chains are often conducted remotely, and the results are not made public.
