What's a Responsible Response to Alrosa?
March 30, 22Alrosa proudly announced its membership of the Responsible Jewellery Council (RJC) in September 2016, having met "the highest ethical, human rights, social and environmental standards".
That accolade rings somewhat hollow today, after the Russian government - one-third owner of the world's biggest diamond miner - sent columns of tanks rolling into its neighbor Ukraine.
The relationship between Alrosa and the RJC - the London-based watchdog that monitors human rights, labor rights, environmental impact, mining practices and more - has come under close scrutiny this week.
Executive director Iris Van der Veken quit on Tuesday, just a day after her three-year anniversary there, frustrated that the group had not take a tougher stand against Alrosa.
On Wednesday Pandora and Richemont resigned their memberships, for essentially the same reason.
There is clearly a sense that the body charged with instilling a responsible worldwide supply chain, that promotes trust in the global fine jewelry and watch industry, is proving to be something of a toothless tiger.
Alrosa remains a member of the RJC and the diamonds it produces still carry its certification. That's despite the voluntary resignation of Peter Karakchiev, Alrosa's head of international relations, as vice-chair of the RJC shortly after the invasion began.
Pandora, the Danish jeweler with 7,000 outlets globally, clearly feels the RJC should be doing more. CEO Alexander Lacik said: "The war requires all businesses to act with the utmost responsibility regarding any interactions or business dealings with Russia and Belarus. Pandora cannot in good faith be a member of an association that does not share our values."
The company implemented an immediate and complete ban on all business with Russia and Belarus on 24 February, covering all raw materials, products or services, supplied directly or indirectly.
Richemont, the Swiss-based company that counts Cartier, Van Cleef & Arpels, Jaeger-leCoultre and Piaget among its 26 maisons, has also quit the RJC, angry at its failure to cut its ties with Russia. Chief financial officer Burkhart Grund said: "We're not trying to make a statement per se, we're trying to uphold the very high standards we've been shaping over last 15 years. If RJC cannot uphold highest of standards, then we cannot be part of that. That's why we stepped down."
We approached the RJC for its reaction to these departures. The response made no mention of Pandora or Richemont, but offered a carefully-worded explanation as to why it had, so far, done absolutely nothing. The board of directors was, it said, mindful of its fiduciary duties and the need to act with diligence. And so it had immediately commenced an arm's length, independent, third-party legal assessment of Alrosa's status as an RJC member. Which has yet to reach a conclusion as of today, Day 36 of the war in Ukraine.
The RJC says that it "appreciates that the pace of this process may be frustrating, but this is an unprecedented situation, which is constantly changing and requires that the time be taken, to ensure that due process is followed as exhaustively as possible."