WWF Switzerland’s Post

Today in The Business of Fashion, reporting on the battle in the background that’s currently shaping tense debates and disagreements over the definition of recycled gold. Currently, multiple definitions are in use, leaving brands to sell products made from so-called recycled gold that may not previously have had a consumer use, and making the industry vulnerable to greenwashing. For example, your recycled gold necklace or watch might be produced from resmelted production scraps, using gold that was mined only days before. Is that recycled? Earlier today, the Precious Metals Impact Forum (PMIF) published an open letter highlighting a ‘divisive’ and ‘counterproductive’ process that now runs into years, following the rejection of its proposal by the Responsible Jewellery Council and the International Organization for Standardization to adopt the definition ‘reprocessed gold’, a term to account for gold entering the value chain that would not otherwise be considered waste (itself a contentious term). The debate rages, with battle lines drawn between miners, refiners, brands, NGOs and the multitude of standards bodies and lobbying groups that populate the precious metals space. Thanks to co-reporter Sarah Kent #gold #recycledgold #sustainability #jewellery #watches #luxury #pmif #rjc #iso #greenwashing https://lnkd.in/e7nRVBiu

Traceability and transparency are equally important when selecting recycled gold over freshly mined gold. This consideration begins with a clear definition: what exactly is meant by the term "recycled gold" and where does it originate?

The Precious Metal Impact Forum is calling for a new definition of recycled gold to combat greenwashing. 🤯 The current definition of “recycled” in the industry includes any gold that has been transformed at least once after its initial refining from mined gold. This means that gold could be considered recycled material without ever seeing a consumer. In some cases, even changing ownership can allow the gold to be referenced as recycled. 🧼This poses a significant risk of greenwashing - highlighting the importance of understanding pre-consumer scrap and post-consumer scrap definitions. ⛏️Pre-consumer scrap, originates from manufacturing or production material diverted from waste streams, excluding scrap capable of being reclaimed into the same process that generated it. Pre-consumer metal scrap is typically re-melted and used again in other processes. This scrap never reaches the final consumer, though an efficient use of material. 🏅Post-consumer scrap originates from the disposal of products after they have been used by consumers and can no longer fulfill the roles of its intended purpose - it has “lived” a full life cycle. This type of scrap is representative of the sustainable and responsible idea most consumers have of recycling. 💡The Precious Metal Impact Forum describes its suggested definitions here: https://lnkd.in/e_UBSW7f 📊The group also proposed transparency in carbon footprint disclosures and suggested consumer-facing brands have a responsibility to be disclose their calculation methodologies. Post-consumer gold has a carbon intensity of 53 kgCO2e/kg compared to 36,410 kgCO2e/kg of gold from mining.

Over the last few years, companies from Pandora to Prada have pledged to only use recycled gold in their jewellery, pitching the decision as a way to reduce environmental impact and ensure ethical production. But as interest in the material has increased, so has criticism from a chorus of industry insiders and sustainability advocates who argue that, under current standards, recycled gold doesn’t mean much at all in terms of sustainability and that stricter definitions are needed to avoid greenwashing. Melting down and re-using metal that’s already in circulation has a lower environmental footprint than mining new ore, a carbon and water-intensive process that has also been linked to mercury pollution, labour exploitation and dangerous working conditions. But critics argue that gold is so valuable that it’s always been reprocessed and growing demand for certified recycled sources of the metal has so far done nothing to reduce mined volumes. A broader array of strategies is needed to actually improve the industry's impact, they say. Pandora said it will always use the best standards available, while Prada declined to comment. The broader debate burst into the open Tuesday when the Precious Metals Impact Forum, a multi-stakeholder initiative that has been lobbying to toughen up how recycled gold is classified, published an open letter criticising opposition from within the industry it claims are pushing to water down standards and distracting from bigger issues. Read the full story on BoF.

In today's world, where social and environmental challenges demand immediate attention, the notion of labeling practices as "green" without true substance is no longer acceptable. As seasoned investment officers, bankers, and impact investment specialists, the call for transparency in the gold and jewelry sector resonates profoundly. This collective voice, represented by 12 esteemed civil society organizations, including Alliance for Responsible Mining (ARM), Artisanal Gold Council, and Fair Luxury, among others, delivers an #OpenLetter advocating for clarity in defining "recycled" gold. This initiative aims to combat greenwashing within the industry, ensuring that consumers receive authentic commitments toward environmental preservation. The term "recycled" carries weight, promising sustainability and ethical sourcing. Consumers who choose products labeled as recycled rightfully expect genuine efforts from companies to protect our environment. 🌍💎 Unlike materials like plastic that face disposal challenges, gold jewelry rarely ends up in landfills. Hence, it's crucial to adopt a transparent approach aligned with legal definitions, encouraging companies to contribute meaningfully to environmental sustainability and social welfare. Consumers deserve clear information to make informed choices regarding the environmental and social impacts of their gold purchases. 🛍️💚 The misalignment between recycled gold usage and actual waste reduction efforts is evident, necessitating a reevaluation of industry standards. Engaging with artisanal and small-scale miners (ASM) is paramount. These communities play a vital role in the gold supply chain and must not be marginalized under the guise of recycled gold. Collaboration with ASM fosters positive social and environmental impacts, aligning with Sustainable Development Goals and promoting local development. Together, let's redefine recycled gold responsibly, uphold transparency, and drive meaningful change in the gold industry. #TransparentGold #ResponsibleSourcing #SustainableJewelry #EthicalGold #RecycledMaterials #GreenStandards #EnvironmentalImpact #SocialResponsibility #GoldIndustry #SustainablePractices #ConsumerAwareness #IndustryEthics #EnvironmentalStewardship #ASMDevelopment #Greenwashing #RecyclingEfforts #ResponsibleConsumption #EcoFriendlyChoices #GoldSupplyChain #SustainableDevelopmentGoals #EthicalSourcing #ResponsibleInvesting #EnvironmentalAdvocacy #SocialJustice #GreenInitiatives #SustainableBusiness #ConsumerEmpowerment #ASMCommunity #IndustryCollaboration #SustainableFuture #GoldEthics #CircularEconomy #GoldStandards #EcoConscious #ImpactInvesting #ClimateAction #EcoAwareness #EthicalFashion #RecycleRight #ConsumerEducation #EnvironmentalAwareness #SocialImpact #GoldTransparency #IndustryStandards #SustainableImpact #ASMInclusion #ResponsibleProduction #GreenConsumerism #EcoInnovation #CorporateAccountability #SustainableEconomy #EnvironmentalJustice

Pandora is using recycled gold as of December 2023. They achieved their target of using 100% recycled silver and gold for all their jewellery ahead of schedule, reaching this milestone a year before their initial goal of 2025. Here are some details about their commitment to recycled metals: Since December 2023: They have been sourcing 100% recycled silver and gold for all their jewellery production. Previously: In 2022, 97% of their silver and gold was sourced from recycled sources. Reason for the switch: Their motivation for using recycled metals comes from a desire to reduce their environmental impact. Mining new metals uses more resources and creates more greenhouse gas emissions than recycling existing ones. Expected results: By switching to recycled metals, Pandora estimates they will avoid around 58,000 tonnes of CO2 per year, which is equivalent to the emissions from the annual electricity use of 11,000 homes. Overall, Pandora's commitment to using recycled gold and silver demonstrates their efforts towards sustainable practices within the jewellery industry. #smartbusiness #sustainablebusinessstrategies #recycledfashion #circulareconomy #demandmanagement

💍 Pandora's commitment to sourcing 100% recycled gold and silver illustrates how a major player can transform its supply chain from a linear to a circular model. Their journey sheds light on the complexities and the potential impact such a transition can entail for other manufacturing industries. ✏ Let's break it down: 💥 *Impact scale* (aka "how much does this matter?"): As the world's largest jeweler, Pandora buys 340 tonnes of silver and 1 tonne of gold annually. Process-shifting at this scale sets a momentum wave in the global volume of silver production at 26,000 Mt/yr, with 5,100 Mt/yr recycled. On the carbon scale, recycling vs. mining reduces carbon emissions by 2/3 for silver and 99% for gold. 🎯 *Focus strategy* (80/20 rule): they chose not to overhaul all material/processes at once but instead prioritize the most significant and achievable impact (e.g., considering the availability of recycled material and processing facilities). 🤝🏻 *People involved*: "All suppliers had to switch their operations," and "more than 100 Pandora employees have been involved". The point is that sustainability transition is NOT just the sustainability team's job. It sounds obvious, but it takes a holistic strategy and determination to mobilize the entire chain inside+outside the organization. 🔍 *Traceability*: once the metal is melted, it's pretty hard to trace where it came from. What if it's stolen/unethically sourced? Even with the size of Pandora's footprint, it has limited capacity to trace everything in-house. They must rely on third-party certification bodies like the Responsible Jewellery Council Chain of Custody. The part they can control is to mandate all suppliers to comply. ⚖ Being open about *unintended consequences* and its decision process around trade-offs: enforcing 100% recycled means excluding some small-scale miners who provide livelihoods for vulnerable communities. There's no perfect solution to benefit everyone; everyone has to balance the issues they feel are the most impactful and move forward with informed decisions, or we'll never take the first step forward while waiting for the perfect solution. 💹 *Business impact*: absorbing the cost premium - Pandora plans to pay US$10m for recycled material, which is more expensive than virgin materials. But out of its total US$1B cost of revenue, that's a <1% cost increase. Its stock price seems unfazed by the news, with a bit positive movement since Jan 29. 🔦 What I took away from the news coverage is an ingredient list of how to enact change within a supply chain. Everyone can contribute to the transition regardless of where you sit in the supply chain and in your organization. Just ask yourself how can you be part of the solution? News article link: https://lnkd.in/gMk6BEbj #circulareconomy #supplychaintransformation #consciousconsumption

This is how illegally sourced gold is laundered into recycled gold by technical definitions section 5.4 literal b. "Reasonable determination of the origin of the recyclable or reclaimable material to establish that any material described as “scrap” or “waste” can legitimately be accepted to meet those definitions." I am not making this up please take a moment to examine the third round of consultations conducted by Responsible Jewellery Council COC standard https://lnkd.in/euqeFe_k Simply classify any gold as scrap or waste through paperwork, and suddenly you're enveloped in the enchantment of sustainability. The omnipotent aura of the term "recycled" will effortlessly eliminate any concerns about traceability risks, while simultaneously offsetting the carbon footprint. #fraud #greenwashing

Imagine it's a 2-for-1 deal: You mask the true source of gold by making unchecked declarations, while also branding it as environmentally friendly and ethically sourced. I'm curious about what the RJC considers reasonable in this context: For instance, if I wanted to declare a ton of gold, worth $60 million, sourced from Africa by the Wagner Group, as recycled, what reasonable evidence would suffice? Could I request, say, 100 invoices totaling $600,000 each for "recycled" gold? Could a shady company handle such billing, or how many would I actually need? It's easy to overlook that this goes beyond just greenwashing; there are serious crimes associated with fraudulent claims about gold of unknown origin. Companies risk becoming complicit with warlords, dictators, and criminal groups, causing immense human suffering.