Gemstones are a beautiful and valuable natural resource that can, and should, enable communities to prosper.
The term ‘ethical business’ suggests that the task has been completed. But there is so much to be done, it is almost as if we haven’t started. For us, ethical business is a moral compass that points us towards responsible decisions.
Our commitment to positive change drives us to work in communities with challenges, because we believe that we have a responsibility to address realities rather than avoid them. Every gemstone taken from the ground has the potential to benefit everyone in the supply chain – especially the local communities where it was mined. Therefore, every gemstone brings with it responsibility.
We invite all our partners, friends and network to help us uphold that responsibility. Because together, we can move mountains.
A gemstone that is mounted in jewellery has passed though countless hands. ‘Ethical sourcing’ requires full traceability throughout that gemstone’s journey, from the earth to person who wears it. Unfortunately, this is rarely the case.
Traceability is often, and conveniently, translated into simply documenting the origin of a gemstone. The term ‘mine-to-market’ is also used. Both are deeply flawed, and all too often deceptive. Neither guarantees that a gemstone has been ethically sourced. What happens in between the mine and the market often remains undisclosed.
Here are some of the questions that we believe you must ask:
– What are conditions like in the mine and mining community?
– What is the environmental impact of the mining work?
– How was the gemstone traded, and by whom?
– Has the gemstone been treated (heat, chemicals or radiation), and where?
– How has the gemstone benefitted the local communities involved?
When it comes to traceability, we don’t just believe in answering the common questions. We also want to address relevant questions that usually go unasked. That is our responsibility as an ‘ethical’ gemstone company.
It is our hope that by sharing all the information we have, we can influence others to do the same and inspire consumers to ask the tough questions that need to be asked. Because the more we know about conditions throughout the gemstone industry, the more we can do to collaborate and drive change.
Our commitment to transparency is a commitment to community – to be honest and open with the people we deal with, so we can work together to create an environment where more and more people take responsibility and action.
Once a gemstone is taken from the ground, it is gone from the soil for good. We want our gemstones to do good.
Extracting natural raw materials like gemstones is inherently unsustainable as they cannot be replaced.
We believe that sustainability in the jewellery industry should instead focus on what these beautiful raw materials can do – for people, communities and the planet. Otherwise, a gemstone’s value is purely monetary.
As a company, we focus on ecological and human impact. We try to foster prosperity in communities and help create opportunities for a better and more responsible world.
We have a strong strategic investment partnership with IBIG
– a company that shares our principles and philosophy of incorporating people and the planet into our primary business purpose.
You can read more about IBIG here.
The Earth is a gem among planets and a gemstone is a gift from Earth. We believe every gemstone is a unique reminder of how amazingly lucky we are to be here.
Even the smallest gemstone is an ambassador for our planet. Its message should not be ignored. We want to share our passion for gemstones with everyone. By doing so, we want to amplify a message of hope and foster responsibility for the amazing planet we live on.
You can read more in this article by Katerina Perez.
Cutting down trees is often the last resort to survive in a desperate situation. In Madagascar, an island once covered in lush forests but now plagued by extreme poverty, local communities cut down trees to make charcoal, which can be sold and used as a source of income. But there increasingly few trees left.
We have adopted a ‘one tree for one gemstone’ policy.
For every gemstone we sell, we plant a tree through our partnership with Eden Forest Project.
Since 2019, we have planted over 100,000 trees in Madagascar.
Read more below in our “violet” projects section
Unlike large-scale diamond mines, the ecological impact of coloured gemstones is relatively small. Mining is artisanal. In Madagascar, for example, gemstones are mined with shovels and transported to the market by foot or bike. In the downstream supply chain, machinery is minimal – mainly water pumps at mines and lathes in the cutting factory.
The major source of carbon emissions is higher up the chain – at our European office in Copenhagen. We are committed to minimising our carbon footprint in Copenhagen. We are also developing a scheme to map and measure the carbon footprint of every gemstone we sell.
We are unaware of any certifications that clarify fair business practise in the jewellery industry. So, for now, we set our own standards. There is an urgent need to clarify fair business practice in gem companies and supply chains.
Until this happens, the industry will remain like the “Wild West”, with assessments based on personal trust – and exploitation rife.
We try to operate a fair business in every location where we work and do our best to assess local circumstances and needs.
We don’t usually have direct influence on the community, but we always operate with a fair and sustainable business strategy that supports the long-term needs of those involved.
We pay a 50% premium when we buy rough gemstones at source.
We also apply a 50% premium on our cutting pricelist, based on pricelists from similar suppliers. In return we demand fair pay and proper contracts.
Wennick–Lefèvre is committed as partners with Nilanthi Thisera to paying a 50% premium on top of the cutting rates in the market.
This is a business model that we have always applied. It enables our partners to grow their businesses and also adapt a responsible policy towards their teams and set new standards in regards to contracts and salaries.
To our excitement the standards we expected Nilanthi to implement, were not only met
– they far exceeded our expectations.
The contracts we suggested, were actually less ambitious than what Nilanthi had already implemented.
The salaries of the workers are not simply improved,
they are doubled!
And workers have 6 months paid maternity leave 🙂
All choices made by Nilanthi, and the premium we pay, is put to work to an extend we did not imagine possible.
The recent economic collapse in Sri Lanka has had profound negative effects on the resources that are available to the public. Due to the increasing prices and lack of gasoline, the current government has had to schedule planned power cuts throughout the island. In Kuruwita those power cuts are in place from 9am to 7pm.
In support of Sunrise Facets, our partners, Wennick–Lefèvre decided to buy a power generator for the factory to allow their team to work through these power cuts,
Alex Monroe heard about the plans and asked to contribute 50% towards this purchase. We really appreciate this action, as it shows that everyone in the supply chain is valued, and is an example of how we should all work more hand-in-hand.
Alex Monroe have now created an entire collection made exclusively with stones from Sunrise Facets.
Katerina Perez’ article about Copenhagen Commitment
“Madagascar is a very poor country that has enormous potential for development.” – United Nations Agency
Madagascar faces a multitude of challenges, with the main one being poverty. It does not have to be this way. Madagascar has enormous mineral wealth and environmental treasures that can increase living standards – if used in the right way.
To do this, local communities and foreign companies in Madagascar must work together to ensure these resources benefit those that need them most.
In Ilakaka where we operate, living conditions are far below Western standards. The vast wealth of gemstones buried beneath the ground offers a pathway out of this poverty, but only if mining remains in the hands of the local community.
The challenges in Madagascar are often cited as a call for Western companies to take control of and use the island’s resources.
We do not agree.
By supporting local access to, and control of, the gemstone mines and markets, we work against foreign exploitation and encourage the long-term wellbeing of the community. Some organisations try to monopolise the market by pushing out local small-scale mines. But small-scale miners are simply doing what they have always done: trying to make the best of their land.
In most gemstone mines in Madagascar, miners only receive USD 3 a day. This is by no means acceptable. But, to put it in perspective, 61% of the population earn less than USD 1. This does not justify the low salary for miners. It simply illustrates that the problem runs far deeper than the gemstone industry. It is heart-breaking to witness this lack of equality. The salary for gemstones miners is a small step towards better salaries in general.
We engage actively in improving conditions for miners, such as advocating for safer mining practises.
You can read more about the main issues faced by Madagascan gemstone miners in this BBC article.
Sri Lanka is a developing country, where people have access to free school and medicine, and extreme poverty is rarely seen. Politically, however, the system is failing. Sri Lanka is dominated by powerful businessmen and politicians, and the country suffers from gender inequality and corruption.
The once artisanal gemstone mining industry – which was run to the benefit of all – is rapidly changing. Mechanical excavators were previously illegal as they cause environmental damage. This is no longer the case, and landowners are increasingly being granted licences for excavator-based operations.
This change may be due to disruption caused by the COVID-19 pandemic; it may simply be the result of corruption – or a combination of the two. There is no doubt, however, that it has significantly impacted the entire mining industry in Sri Lanka.
Traditional mining practices gave work to many, benefitting the entire community, and kept the land undisturbed. Now environmental concerns are ignored, and profits from mining are lining the pockets of the few.
In Sri Lanka today, landowners extract material with excavators. This is then processed in washing plants and the gemstones are sold in bulk to foreign traders. This has damaged the existing supply chain and ecosystem.
There is no longer work for miners. Local gemstone traders have lost their business. Even the Sri Lankan cutting factories – which are some of the best in the world – struggle to get hold of gemstones. This should not be the case. To ensure that cutting work remains in the country, the export of rough, uncut gemstones from Sri Lanka is illegal. But smuggling is now rife.
The only people who benefit from these new practises are the politicians, the landowners and the foreign gemstone industry.
This is a recent development and its consequences have yet to fully manifest. But it is disheartening to witness an industry that once benefitted entire communities being destroyed so that the few can turn a quick profit.
To the surprise of many, during our travels in the gemstone industry, we have not witnessed communities haunted by violence, crime, child labour or warlords.
The conflicts we have seen are quite ‘normal’.
This is not to deflate their importance. They are the very important ‘normal’ conflicts found anywhere that there are extreme poverty, social issues and exploitation of local communities.
We find it deeply disturbing that so many global entities ‘solve’ the issue of conflict in their supply chain by bypassing the local community.
By doing so, they can say their gemstones are ‘conflict-free’, but it is a deeply flawed and damaging solution.
The strategy takes the natural resources away from local communities. It starves them of a source of income and prosperity, and increases the challenges they face.
It is theft with a different name, exploitation of natural resources without responsibility, a supply chain that benefits only the people at the top.
In saddens us to say that in all the cases we have witnessed, this theft was enabled through bribes to local politicians and authorities.
Many companies solve the ‘conflict-free’ issue differently.
They source their gemstones in areas ‘free from conflict’, such as Sri Lanka, Canada, Australia and the USA.
They then declare their stones ‘ethically sourced’.
But avoiding an issue is not ethical.
We believe ethical sourcing requires working with people in communities that face challenges in order to make a difference
– so those communities can prosper from the wealth of their own natural resources.