1. The jewellery industry is far behind other sectors in terms of sustainability

Gold is a luxury product associated with romance and glamour. It’s no surprise, therefore, that consumers don’t want to hear about the darker side of how their precious metal got from the ground to their jewellery box.

It’s a story of violence and violations associated with acquiring access to the mineral resource, resettling communities, the use of private security, deforestation and habitat destruction, bribery, corruption and illegal payments to armed groups – as well as the use of gold and diamonds for money laundering.

According to Estelle Levin, an artisanal mining and responsible sourcing specialist, although some smaller businesses are being honest and transparent about these issues, many of the larger companies are too afraid to put the industry at risk by speaking out.

2. We need to encourage retailers to take a chance on ethical products

Retailers are loath to stock ethical products such as Fairtrade alongside other stock because they believe it will tarnish their image. We need to encourage retailers to take a chance on these products and see it as a first step towards offering more transparency, says Amy Ross from the Fairtrade Foundation.

“If we encourage retailers to look at this issue through the lens of offering consumers greater choice, then they can take that first step without ‘tainting’ the rest of their stock,” says Ross. “It’s a big challenge, but it has been overcome in other sectors. It might take time, but we’re confident that with persistence and the right encouragement, retailers could be won round.”

3. We need quality leadership in big companies – refineries that are prepared to change

The jewellery industry is 30 years behind other sectors in the quality of its supply chain management, claims Alan Frampton. The managing director of Cred Jewellery says the reason refiners are in the firing line is because they “mass balance good with bad, [so] no one knows where the gold comes from”. Frampton claims, for example, that Switzerland can only offer traceability on less than 1% of its gold. In 2015, that’s not good enough.

4. Fairtrade is not the whole story when it comes to ethical and responsible behaviour

Lina Villa, director of the Alliance for Responsible Mining, claims the job of bringing better opportunities to 25 million miners and transparency to the gold sector is so complex that there is space for different initiatives and approaches. “Certification is changing quite a lot, and while labelling is important it is not the only approach. Most of Fairmined’s sales last year came from our incorporated model, which requires traceability to the refiner but not beyond that, and there is no labelling,” she said.

5. Certification still allow miners to use harmful chemicals, such as mercury

Vivien Johnston, founder and designer at Fifi Bijoux, says: “Mercury is very dangerous and has massive environmental implications too. But unless a viable alternative can be given to miners, the best thing is to mitigate the harm it causes and ensure it’s being handled responsibly.

“The Fairtrade and Fairmined certification schemes have both created standards and steps which the miners comply with in order to become certified. Once they are certified, it’s not static – they must continue to improve.”

6. Whether consumers should pay a premium for ethically sourced gold or not is debatable

In the food industry, buying organic produce often means paying more, but adding a premium to the retail price has suppressed volume of sales. Is there a need for the gold industry to restructure itself and its retail pricing model in order to accommodate the cost of paying a fair price to protect workers and the environment?

Sarah Greenaway, senior brand manager at B&Q, says it’s much harder for smaller companies to deal with the margin implications of Fairtrade. But she believes passionately that “change bubbles up, and in today’s digital world the noise that we are creating as small ethical brands will be heard by consumers and bigger companies alike.”

She adds: “We must collaborate to amplify our effect and lead the way for the established, larger players. They are key to making the economics healthy.”

7. The power of change comes from the middle of the supply chain

While pressure from consumers can help oil the wheels of change, Levin believes it is attention by the middle of the supply chain – refiners in particular – that can really have an impact upstream. Fairtrade and Fairmined may be consumer-driven brands, but they are “closed pipe supply chains”. Changes on the sectoral level have different drivers: compliance and market differentiation.

8. There is still a lack of consumer awareness

Marylyn Carrigan, professor of marketing at Coventry University, says: “Consumers seem quite oblivious about being responsible in purchasing jewellery, so there is no pull through the supply chain to encourage manufacturers [or] retailers to deliver responsible products. As in lots of other industries, we hear businesses tell us they are waiting for consumer demand before they respond, which means in the end everyone is waiting to see who blinks first.”

9. It is up to jewellers to influence policy

If the policy environment is discriminating or marginalising then artisanal and small-scale miners (ASM) are criminalised, says Levin. They cannot reach responsible markets, and cannot professionalise. It is therefore in the interest of countries that have pioneering jewellery sectors to address this problem.

Jewellers, gem manufacturers and refiners must likewise make efforts to invest in high-profile formalisation projects and ensure government also has a role. “It’s most powerful when the market and the policymakers get together to create an enabling environment,” she says.

10. Time will tell whether scaling of Fairtrade silver will face similar issues to gold

Fairtrade silver was launched in the UK in 2013 and is available when it is produced as a by-product of Fairtrade gold, reveals Ross. She says that while there are similar issues to gold in getting consumers and the industry engaged with transparency, it has already proved very popular with consumers because silver jewellery is cheaper.

Frampton, however, believes it is too early to gauge consumer reaction to Fairtrade silver. Greenaway adds that companies have a duty to do the right thing in their sourcing policy and business model, but customers shouldn’t have to pay extra for ethical practice.

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