Tiffany & Co. has released its second annual Corporate Responsibility Report, which is based on the jeweler's performance for fiscal year 2011, and provides a review of the high-end diamond jeweler's most significant environmental and social challenges and opportunities.
The content of the report was derived in accordance with the frameworks of the Global Reporting Initiative (GRI) G3.1 and the United National Global Compact (UNGC). Tiffany & Co. Chairman and Chief Executive Officer Michael J. Kowalski states that the jeweler joined the UNGC in 2011 to share its "commitment to human rights and to operating in an environmentally responsible manner."
Responsible Mining: Tiffany & Co. strives to source diamonds, gemstones and metals from mines that adhere to the standards for quality and environmental and social responsibility. In 2011, Tiffany financed projects in Sierra Leone and South Africa, assuring its access to high-quality diamonds and allowing for increased traceability. The jeweler states that it sources the majority of its rough diamonds directly from mines in Botswana, Canada, Namibia, Russia, Sierra Leone and South Africa, and that it purchases rough diamonds only from countries that are participants in the Kimberley Process Certification Scheme (KPCS). In addition, in 2011, Tiffany & Co. received approximately 100 percent of its rough diamonds either directly from a known mine or a supplier with several known mines. These diamonds are cut and polished at one of the international facilities or approved subcontractors of Laurelton Diamonds, Tiffany's wholly owned subsidiary that purchases rough diamonds and manages its worldwide supply chain. In addition to the diamonds received from Laurelton Diamonds, Tiffany & Co. buys polished diamonds from third-party suppliers that operate in accordance with the World Diamond Council's System of Warranties, thereby ensuring that the diamonds hail from conflict-free sources.
Supplier Responsibility: Tiffany & Co. implements rigorous standards in terms of its facilities and vendors. The high-end jeweler has founded a multidimensional Social Accountability Program which comprises comprehensive guidelines for the manufacturing processes of the materials the company procures. The program is designed to ensure that Tiffany's vendors operate according to the company's exacting standards, for example the protection of basic human rights, adherence to ethical standards and compliance with all applicable laws and regulations. Vendors are classified according to their risk level, which is determined by a vendor self-assessment, industry and geographic location. The program is based on both internal and third-party audits which are conducted over a two-year cycle. According to the report, all high-risk vendors were audited during the 2010-2011 audit cycle.
Governance: Tiffany's Sustainability & Corporate Responsibility Department works globally to ensure that the company operates in the most responsible manner. Working closely with the jeweler's internal and external stakeholders, the Department does its utmost to continuously improve corporate responsibility performance. By voluntarily reporting on its performance, Tiffany demonstrates its longstanding commitment to the environment and community. In 2011, the Tiffany & Co. Board of Directors adopted the Tiffany & Co. Principles Governing Corporate Political Spending, which apply to the jeweler and its controlled affiliates.
Charitable Giving: In 2011, Tiffany & Co. donated over 2 percent of pre-tax earnings to charitable causes, among them local community investments and contributions to The Tiffany & Co. Foundation's endowment.
Looking ahead to 2012, Kowalski says that Tiffany plans to increase its sustainability performance by "developing quantitative and process-oriented goals to further embed sustainability into the core competencies of our business."
For more details on the report, click here: http://tinyurl.com/92l3g8m