Responsible Jewellery Council

Code of Practices
Guidance

April
2019

The Responsible Jewellery Council
The Responsible Jewellery Council (RJC) is a not-for-profit
standard-setting and certification organisation founded in 2005.

Our vision is a responsible worldwide
supply chain that promotes trust in the
global fine jewellery and watch industry.
About this guidance
The RJC Code of Practices (COP) defines the responsible ethical, human rights, social and environmental practices that all certified
RJC members must adhere to. This guidance offers general information and suggestions on how to implement the COP; it is not a
substitute for legal advice.
This is a living document and the RJC reserves the right to revise it based on implementation experience and emerging goodpractice. The official language of the COP is English, with translated versions available on the website. The English version postedon the RJC website supersedes all other versions; see www.responsiblejewellery.com.

Disclaimer
No guarantee, warranty or representation is made as to the accuracy or completeness of this guidance or other documents orinformation sources referenced in it. Following the guidance is not intended to, nor does it, replace, contravene or otherwise alter
the requirements of any applicable global, national, state or local governmental statutes, laws, regulations, ordinances or otherrequirements.
This document gives general guidance only and should not be regarded as a complete and authoritative statement on any of the
topics covered by it. Following the guidance is entirely voluntary for non-members and is neither intended to, nor does it, create,
establish or recognise any legally enforceable obligations or rights against the RJC and/or its members or signatories. Nonmembers shall have no legal cause of action against the RJC and/or its members or signatories for failing to comply with the COP.

Enquiries, feedback or complaints
We welcome feedback on this guidance. Contact us through www.responsiblejewellery.com/contact-us. Any complaints relating
to non-conformance with the COP, RJC certification or the RJC’s own policies, processes and procedures can be submitted
through the RJC Complaints Mechanism at www.responsiblejewellery.com/contact-us/rjc-complaints-mechanism or bytelephone: +44 (0)20 7321 0992.

Version published 23 April 2019
The Responsible Jewellery Council is a trading name of the Council for Responsible Jewellery
Practices Ltd, which is registered in England and Wales with company number 05449042.
© RJC 2019. All rights reserved.

Contents
The Responsible Jewellery Council

2

Introduction

5

General Requirements

11(COP 1)

Legal compliance

12(COP 2)

Policy and implementation

18(COP 3)

Reporting

22(COP 4)

Financial accounts

29

Responsible supply chains and human rights

31(COP 5)Business partners

32(COP 6)

Human rights

37(COP 7)Due diligence for responsible sourcing from conflict-affected and high-risk areas

50(COP 8)Sourcing directly from artisanal and small-scale mining

91(COP 9)Sourcing post-consumer industrial precious metals directly from informal recyclers

98(COP 10)

Community development

102(COP 11)

Bribery and facilitation payments

105(COP 12)Know Your Counterparty (KYC): Money laundering and finance of terrorism

111(COP 13)

Security

119(COP 14)

Provenance claims

124

Labour rights and Working conditions

130(COP 15)

General employment terms 

131(COP 16)

Working hours

136(COP 17)

Remuneration

143(COP 18)

Harassment, discipline, grievance procedures and non-retaliation

151(COP 19)

Child labour

159(COP 20)

Forced labour

166(COP 21)

Freedom of association and collective bargaining

174(COP 22)

Non-discrimination

180

RJC Code of Practices Guidance3

4

Health, safety and environment

183(COP 23)

Health and safety

184(COP 24)

Environmental management

200(COP 25)

Hazardous substances

209(COP 26)

Wastes and emissions

215(COP 27)

Use of natural resources

224

Gold, silver, PGM, diamond and coloured gemstone products

232(COP 28)

Product disclosure

233(COP 29)

Kimberley Process certification scheme and World Diamond Council system of warranties

245(COP 30)

Grading, analysis and appraisal

249

Responsible mining

254(COP 31)

Extractive Industries Transparency Initiative

255(COP 32)

Stakeholder engagement

259(COP 33)

Indigenous peoples and free, prior and informed consent 

268(COP 34)

Impact assessment

278(COP 35)

Artisanal and small-scale mining and large-scale mining

285(COP 36)

Resettlement

292(COP 37)

Emergency response

296(COP 38)

Biodiversity 

301(COP 39)

Tailings and waste rock

310(COP 40)

Cyanide

318(COP 41)

Mercury

320(COP 42)

Mine rehabilitation and closure325

RJC Code of Practices GuidanceIntroduction
A About the RJC Code of Practices (COP)The RJC COP defines the requirements for establishing responsible business practices throughout the jewellery supply chain,from mine to retail.
The COP provides a common standard for ethical, social, human rights and environmental practices, and certification against
it is mandatory for all RJC commercial members. COP certification provides a strong system for assuring stakeholders,shareholders, customers and business partners that a company conducts its business responsibly. This can add value to acompany’s products and help protect and enhance its brands.
More importantly, COP certification can reduce risks and vulnerabilities in a company’s supply chain and improve management
systems and operating procedures to strengthen the business and make it more sustainable. It simultaneously leads to bettersocial and environmental conditions within the broader industry, bringing positive impacts for workers, communities andenvironments alike.

COP at a glance
The RJC COP:
• Provides a common standard for responsible business practices from mine to retail.
• Builds on and supports international standards and development goals.
• Applies to gold, silver, PGM, diamond and coloured gemstone supply chains.
• Requires third-party auditing and is mandatory for all RJC members.
• Is designed to improve ethical, social, human rights and environmental conditions.

B About this guidanceThis guidance is designed to help RJC members implement the COP and to support RJC-accredited auditors carry out COP
certification audits. It may also prove useful to non-member businesses in the jewellery supply chain and other stakeholders
who want to learn more about establishing responsible business practices in the sector.
The RJC COP sets out requirements for what a business must do, but itdoes not prescribe how systems and proceduresshould be designed. All guidance in this document is not prescriptive; it is simply offered as a starting point for informationand support. The RJC also offers web-based training and digital toolkits to help companies adhere to the COP and get throughcertification (see www.responsiblejewellery.com/rjc-certification/code-of-practices-certification13-2).

RJC Code of Practices Guidance5

C Content
The COP is structured into six broad sections and comprises 42 provisions, which make up the individual chapters of thisguidance (see Table 1). These cover a wide range of sustainable development issues, and apply to any size of business, across all
sectors of the gold, silver, PGM, diamond and coloured gemstone jewellery supply chain. The last 12 chapters focus specificallyon the contribution that a responsible mining sector can make to promoting and protecting sustainable communities andenvironments.
Table 1. Individual provisions of the COP

Generalrequirements

Responsible
supply chains,
human rights anddue diligence

Labour rights
and working
conditions

Health, safety andenvironment

Gold, silver, PGM, Responsible
diamond andminingcoloured gemstone
products

1. Legal compliance 5. Business
partners
2. Policy andimplementation
6. Human rights

15. Generalemployment terms

23. Health andsafety28. Productdisclosure

16. Working hours

3. Reporting

17. Remuneration

24. Environmental
management

29. Kimberley
Process
Certification
Scheme andWorld DiamondCouncil System of
Warranties

4. Financial
accounts

7. Due diligencefor responsible
sourcing fromconflict-affected
and high-risk areas

25. Hazardous
18. Harassment,
substancesdiscipline, grievanceprocedures and
26. Wastes andnon-retaliation
emissions

8. Sourcing directly
19. Child labour
from artisanal andsmall-scale mining 20. Forced labour
9. Sourcing postconsumer industrial
precious metals
directly frominformal recyclers
10. Community
development
11. Bribery
and facilitation
payments
12. Know YourCounterparty:
money launderingand finance ofterrorism
13. Security
14. Provenanceclaims

21. Freedomof associationand collective
bargaining
22. Nondiscrimination

27. Use of natural
resources

30. Grading,analysis andappraisal

31. Extractive
Industries
Transparency
Initiative
32. Stakeholder
engagement
33. Indigenous
peoples and free,prior and informed
consent
34. Impact
assessment
35. Artisanal andsmall-scale mining
and large-scale
mining36. Resettlement
37. Emergency
response
38. Biodiversity
39. Tailings andwaste rock40. Cyanide
41. Mercury
42. Mine
rehabilitation andclosureEach chapter of this guidance offers a short background to the issue at hand; a selection of key regulations, standards
and initiatives; a series of tips and guidance on how to implement the relevant COP provision; and a list of websites andpublications where more information about the issue can be found.
Key terms are defined at the beginning of each chapter; a full list of definitions is given at the end of the COP Standard itself.

6

RJC Code of Practices GuidanceD Applying the COP–scope
As a whole, the COP can be applied by any business, in any country, working at any stage of the gold, silver, PGM, diamond andcoloured gemstone jewellery supply chain (see Figure 1). Note that the scope of coloured gemstones in the 2019 version of the
COP Standard is all sectors of the rubies, sapphires and emeralds jewellery supply chain.1

Exploration and mining

Jewellery manufacturing• Exploration or development• Manufacturing• Mining• Wholesaling

Diamonds and coloured gemstones

Jewellery retailing• Trading or wholesaling• Retail and sales, includinginternet sales• Cutting or polishing

Service industries
Gold, silver and PGM• Refining or alloying• Trading or hedging• Gemmological laboratories• Assayers• Transport providers• Private security

Depending on your business type, individual provisions may or may not apply to you. For example, while COP 1 on legal
compliance applies to all RJC members, COP 8 on artisanal and small-scale mining (ASM) only applies to those that source gold,
silver, PGM, diamonds or coloured gemstones directly from ASM producers.
The applicability of each provision is clearly stated at the beginning of each chapter in this guidance.

E Management systems to support the COP
RJC members are free to choose their own management approach to implementing the COP. The guidance in this document isnecessarily generic, and as such is offered as a broad suggestion that may not always be appropriate to individual businesses.
In many cases, companies will have their own tried and tested methods that have been developed to match their particularbusiness and operating context; these can and should be used wherever appropriate.
In general terms, the RJC identifies eight common elements of, or mechanisms within, management systems that will help
businesses implement the COP effectively. These are outlined below, followed by Table 2 identifying each COP provision that
requires the mechanism to be established. Companies may consider it more effective to develop combined mechanisms for thevarious COP provisions and should do so wherever appropriate, for example developing a single training programme for legal
compliance (COP 1), business partners (COP 5), security (COP 13) and the other COP provisions for which training is required.

1. Management responsibility.
Making a senior manager responsible for specific COP-related issues will help ensure that these are incorporated into thecompany’s planning and operations. In many cases, the same person can be made responsible for multiple provisions. For
example, you can make a single senior human resources manager responsible for all the requirements under the section on
labour rights and working conditions.

2. Written policy.
A written policy clarifies a company’s position on key issues and acts as a formal record of it. It can be used to give consistent
information to employees and business partners. You do not have to have a policy on each and every provision in the COP.
Rather, you may consider having a few key policies that group similar issues together, or even having a single general policy
statement covering the COP as a whole.

1

The option to expand to include all other coloured gemstones will be assessed within two years of the publication of the 2019 version of the COP Standard.

RJC Code of Practices Guidance73. Risk assessment.
Risk assessments are recommended throughout the COP as a tool to identify and characterise adverse impacts—both to abusiness and externally. Depending on the provision at hand, you may need to assess social risks (for example, risks to people’s
human rights, health and safety, or security) or environmental risks (such as contamination or biodiversity loss) or both, as thetwo are very often interlinked.

4. Set procedures.
Established procedures identify how to put policies into practice. Implemented well, they serve to ensure a robust andconsistent approach to specific issues, and they are required or recommended in almost every COP provision. You may wish
to integrate some (or all) aspects of these into a new or existing whole-of-business management system, or into specificframeworks for managing key issues, including due diligence, human resources, stakeholder engagement, communications andenvironmental management.

5. Records.
Reliable record-keeping enhances accountability and allows businesses to manage data and measure progress over time. It
provides an essential source of information for both internal reviews and external audits. Some COP provisions specificallyrequire records to be kept, for example on your inventory or business transactions, or on your decisions and actions. In allcases, you will be asked to provide records from the past 12 months for your first RJC certification audit. Once certified, you
are required to keep records for certification for at least three years (or longer if required by applicable law or as specified inparticular COP provisions).

6. Report.
Publicly reporting economic, environmental and social information strengthens a company’s credibility and reputation forresponsible business among government, investors, business partners, employees, communities and customers alike. The
COP requires companies to report publicly, at least once a year, on COP-relevant business practices and outlines reporting
requirements for several specific topics, including efforts to prevent human rights impacts, water management initiatives,
impact assessment findings, material payments to government and any information relevant to affected communities.

7. Training.
Training is useful for building understanding of policy and practice, developing new skills, clarifying expectations andstrengthening accountabilities. Depending on its purpose, training can be targeted at employees, business partners orother external stakeholders (such as artisanal and small-scale miners or local communities). In all cases where training is
recommended or required by the COP, make sure you keep records of the training given (including what, when and to whom).

8. Grievance mechanism.
Grievance mechanisms provide a channel for individuals and communities affected by a company’s activities to raise concerns
for investigation and remediation as necessary. A rights-compatible mechanism that allows stakeholders to raise concerns
early, openly, on an informed basis, and with due protection and respect for human rights, is required for several COP
provisions. Some are targeted at employees, some are targeted at external stakeholders. Internal and external stakeholders
require slightly different approaches, so you will likely need two separate mechanisms to comply fully with the COP.

8RJC Code of Practices GuidanceTable 2. COP provisions where different mechanisms are required or recommended
COP provision

Manager

PolicyRisk
Set
Records
assessment procedures

ReportTraining

Grievancemechanism

1

Legal compliance2

Policy3

Reporting

4

Finance

5Partners

DD

6

Human rights

DD

IN/OUT7

Due diligence

DD

OUT

8

Sourcing from ASM

DD

OUT

9

Sourcing from
Informal recyclers

DD

OUT

10 Community devt

SM

11 Bribery

HR

12 KYCDD

IN/OUT

13 Security

DD

14 Provenance claims

CM

IN/OUT

16 Working hoursHR

IN

17 Remuneration

HR

Discipline and18
grievances

HR

19 Child labourHR

15 Employment

IN

20 Forced labour
21 Freedom of associationHR

22 Non-discriminationHR

23 Health and safety

HS

24 Environmental mant

EM

25 Hazardous substances

HS

26 Waste and emissions

EM

27 Natural resourcesEM

28 Product disclosure

CM

29 KPCS and SoW

DD

30 Grading and appraisal

CM

31 EITI

EITI

32 Stakeholders

SM

33 Indigenous peoples

SM

34 Impact assessment

EM

IN

OUT

35 ASM and LSM
36 Resettlement

SM

37 Emergencies

SM

38 Biodiversity

EM

OUT

39 Tailings and waste rock
40 Cyanide
41 Mercury
42

EM

Mine rehabilitationand closureKey:
Set procedures: DD: Due diligence system; SM: Stakeholder management; HR: Human resources;
CM: Communications management; EM: Environmental management; HS: Health and Safety
Grievance mechanism: IN: For internal stakeholders; OUT: For external stakeholders

RJC Code of Practices Guidance9F Small businesses
The COP is designed to be applied by businesses of any size. The jewellery supply chain is made up of big and small businesses
alike. In many countries it is dominated by family-owned retail, design, cutting and polishing, and manufacturing businesses
with 25 or fewer workers; at the mining end of the supply chain, small-scale producers are also common in many parts of theworld.
COP certification is no less stringent for small businesses, but neither should it be disproportionately onerous or challenging.
Auditors will take size into consideration when verifying conformance with the COP. They will look for objective evidence ofeffective management systems and good performance, rather than ask for copies of complex procedures and records.
This approach acknowledges that while the management systems of small businesses or production facilities may be lessformal than those of larger companies, they can work just as well to uphold the COP. For example, a small business does notneed to prepare a long, formal publication to conform with COP requirements on public annual reporting; in many cases, a
simple electronic memorandum, which is available on request, or an email will do.
Regardless of business size, documentation should be fit for purpose and consistent. In auditing small businesses, auditors willoften combine a review of relevant documents, policies and records with other tactics to assess how systems work in practice.
Interviews are particularly valuable in this regard because they can reach a much greater proportion of the workforce in small
businesses compared with larger workplaces, and so serve as a more accurate gauge of awareness and understanding among
employees.
In reading the chapters that follow, the RJC encourages you to interpret its guidance in the context of your own business size.
In many cases, the guidance includes specific suggestions for tweaking approaches to better suit small businesses.

10

RJC Code of Practices GuidanceGeneralRequirements

(COP 1) Legal compliance
A Definitions and applicability
This provision applies to all RJC members.
Applicable law includes all the supra-national, national, state and local laws in place where a business operates.
Compliance is a state of being in accordance with established guidelines, specifications or legislation.
Legal compliance generally refers to behaviours and practices that are done in accordance with applicable law.
Systems are management processes and documented procedures that collectively provide a systematic framework
for ensuring tasks are done correctly, consistently and effectively to achieve the desired outcomes and drive continual
performance improvements.
COP 1 covers general legal compliance requirements. Additional requirements may also apply to individual issues; these are
specified in other COP provisions, as and where applicable.

B Issue backgroundManaging legal risk effectively through compliance helps a business maintain a good reputation and remain sustainable.
Legal and regulatory compliance demands that companies abide by applicable law, which may include:• legislation, regulations and legally required codes or standards;• permits, licences and other forms of authorisation;• local by-laws; and• decisions, directions, rulings or interpretations issued by relevant courts and tribunals.
Companies that do not comply with applicable law can face a range of consequences, including:• financial penalties or fines;• companies being civilly or criminally liable for employees’ actions;• directors and managers being civilly or criminally liable for the company’s offences;• disqualification of directors; and• follow-on damages actions by affected parties.
In some cases, the state can hold businesses accountable for non-compliances in their operations or supply chain (for example,
pollution or forced labour) without having to prove that the business is non-compliant with the law. It is up to the business toshow it is compliant.

Classifying non-conformances with COP 1
A major non-conformance will apply if you have not identified legislative or regulatory requirements relevant to the COP;or if you know about a non-compliance with legislative or regulatory requirements and:• you have made inadequate attempts to rectify it; and/or• this situation has the potential to pose an imminent risk to workers, the community or the environment.
A minor non-conformance will apply if you know about a non-compliance with legislative or regulatory requirements and:• you are making adequate attempts to rectify it; and• the non-compliance does not pose an imminent risk to workers, the community or the environment.
A minor non-conformance will also apply if you have not identified legislative or regulatory requirements relevant to the COP
and the non-compliance does not pose an imminent significant risk to workers, the community or the environment.

12

RJC Code of Practices GuidanceC Key regulations, standards and initiatives
The RJC does not give its members specific advice on applicable law because laws vary depending on the type of business athand, where it operates and what facilities it has.
Law typically consists of both legislation made by governments and rules set by courts. Legal obligations often extend beyond
specific statutory laws and regulations. Many principles are established based on decisions of previous cases heard by the
courts; these are called common law or case law.
The International Labour Organization (ILO) maintains NATLEX (www.ilo.org/dyn/natlex), a database of national labour, social
security and related human rights legislation across 196 countries and more than 160 territories and subdivisions. NATLEX is afree resource all companies can use to help them identify their legal requirements.1

General Data Protection Regulation (GDPR)
From May 2018, all companies operating in the European Union (EU) must comply with new data protection rules (GDPR),
wherever they are based. GDPR represents the biggest change in data processing legislation in 20 years and failure tocomply can result in large financial penalties.
GDPR standardises data protection law across the EU and imposes strict new rules on controlling the personal dataof identified or identifiable persons. Personal data includes any information that you store about someone that canbe directly used to identify them. Different pieces of information, which collected together can be used to identify aparticular person, also constitute personal data.
If your business establishment is located in the EU, if your business involves the transfer of personal data into the EU or
markets goods or services to individuals within the EU, then you must comply with requirements set out in GDPR.1 Hereare some steps to consider in complying with GDPR:
1. Identify what personal data you collect and process, and confirm why you do it and on which legal basis. Personal data
includes things like name, home address, IP address and location data (for example, on mobile phones).
It does not include company registration number or anonymised data. Personal data can be collected throughstaff records, CCTV footage or IT systems.
2. Inform your customers, employees and other individuals when you collect their personal data.
3. Keep personal data for only as long as necessary.
4. Secure any personal data you process.
5. Document, and keep records of, your data processing activities.
6. Make sure your personal data subcontractors respect the rules.
Implementation requirements for GDPR differ depending on the size of your company and the type of data you process.
For more information and guidance, contact your country-specific European Data Protection Board member(https://edpb.europa.eu/edpb_en) or see:• European Commission information
https://ec.europa.eu/info/law/law-topic/data-protection/data-protection-eu_en• Information Commissioner’s Office self-assessment toolkit (within the UK)
https://ico.org.uk/for-organisations/resources-and-support/data-protection-self-assessment

1

Please note that this list is not exhaustive and you should seek legal advice in order to determine whether the personal data processing that your business undertakes
falls within the scope of GDPR.

RJC Code of Practices Guidance

13

D Implementation guidance
COP 1.1: Legal compliance
Members shall have systems in place that maintain awareness of, and ensure compliance with, applicable law.

Points to consider:• As an RJC member, you are expected to know the local laws and regulations across all your areas of operations, and to keep
abreast of legal developments in legislation and associated case law.
• COP certification does not aim to provide a full legal compliance audit. Rather, it aims to ensure you have the framework youneed to be aware of applicable law and to abide by it over time. In practice, that means you need to show you have systems
and procedures in place to access current information about applicable law and to maintain compliance.
• Make sure you have systems, processes, procedures or methods that can adequately monitor legal developments andidentify key areas of legal risk.
• Identifying applicable laws or changes in them, interpreting them and determining their impacts on your operations can betime-consuming. But there are many external sources that can help, including:•commercial services;•

regulatory agencies;•

government departments;•

trade groups and industry associations;•the internet;•

public libraries;•

seminars and courses;•

subscriptions to newsletters and magazines;•

consultants and legal professionals; and•customers, vendors and other companies.

• If you are unsure of your legal compliance requirements, seek legal advice from a qualified professional. This includes
seeking advice on things like import and export requirements and intellectual property rights, which are not explicitly
covered in the COP.
• Make a specific person, or group of people, responsible for compiling and maintaining a register for legal compliance thatlists:•

all relevant applicable laws and regulations, required licences and permits, and reporting and disclosure obligations;•any ongoing developments in these requirements;•

your compliance status, and any future actions needed to remain compliant; and•any measures needed to correct potential non-compliances.

See ‘Legal compliance registers: example template’ below for an example register.
• Communicate legal requirements to all your employees and contractors and give them training to ensure they understandwhat they need to do to ensure compliance.

14

RJC Code of Practices GuidanceQ&A: Legal compliance
1. What do I do if legal requirements are different from the COP?
If there is a difference between applicable law and the COP, RJC expects you to conform with whichever is more stringent.
So:• If applicable law sets more stringent requirements than a COP provision, you are expected to comply with the legislativeand regulatory requirements in question.
• If RJC requirements as defined in the COP set a more stringent standard than applicable law, you are expected toconform with the COP, even though this exceeds legal requirements.
Note that if compliance with the COP would result in a violation of applicable law, then applicable law must prevail.
2. What happens when there is a dispute about legal requirements?
RJC understands that sometimes it may not be clear how to interpret the law (for example, if there is no guidance or if a
law is under review in the courts). In these cases, you should submit any government-issued guidance that is available, as
well as any legal opinions (drafted by a judicial officer, legal expert or court), as part of your self-assessment; your auditor
will consider these in assessing COP conformance.
In cases of legal dispute:• A minor non-conformance applies if your auditor believes there is a COP non-conformance but you can show that you
understand the legal requirements and the matters under dispute.
• A major non-conformance may apply if your auditor finds that your approach creates an unsafe working environment ora threat to workers, communities or the environment.
3. What happens if I have applied for a permit or licence but it is still being processed by government authorities?
Pending approvals are common, as businesses and legislation frequently change and it can take time for relevant authorities
to process applications. If the delay in having a valid permit is due to government procedures and you can show that you havesubmitted all required materials to request the permit or licence, auditors will classify the situation as conformance.

RJC Code of Practices Guidance15

Check:■■Can you name the person, or group of people, responsible for legal compliance?
■■Can you show the auditor how you maintain awareness of legal requirements and changes in the law?
■■Can you show the auditor the steps you take to monitor your compliance with applicable law?
■■Do you have all required permits and licences? If not, can you show you have correctly applied for any missing permits
and licences and are waiting on approval?

Legal compliance registers: example template
A legal compliance register usually contains the following information:• The name of the act, regulation, standard, code, policy, permit, etc. Most governments and regulatory authorities publish
legislation online, so include a link or description of its location where possible.
• The jurisdiction where the legal instrument applies, be that local, regional, national or international.
• Information about the governing body or authority that enforces or manages this legal instrument. Consider listing a
relevant contact name and details (where known).
• A description of the purpose and key requirements specified in the legal instrument. This can be in plain language rather
than legal jargon and should include upcoming changes (actual or proposed).
• A description of the impact of the legal requirements on your business, including how these requirements affect specificactivities or processes. It is useful to relate this to specific management system documentation, such as:•procedures to manage its activities;•

external statutory reporting expectations; and•timing and framework for paying licence or permit fees.

You can use this information to communicate with employees and train them in their legal obligations.
• Nominate someone within the business to be responsible for ensuring compliance and for accessing information about thelegal instrument.
• Specify how often and when compliance evaluations will be carried out. Sometimes this is prescribed by law. In most cases,
it will depend on your business; evaluations should be done at a frequency commensurate with the risk associated with therequirements.
• List evidence and records that show compliance.
• Reference and track corrective actions for any non-compliances.

16

RJC Code of Practices GuidanceTable 1.1 shows an example of what a legal compliance register might look like. You can use it if you want to, but you are also
free to take your own approach to legal compliance to conform with COP 1.
Table 1.1. Example of a legal compliance registerActs,
regulations,standards,
codes andpolicies

Jurisdiction

China
Regulations
on theManagementof the Importand Export Of
Goods 1996

Regulatory body

Description of key
regulatory or otherrequirements

Relevance
to members’
business

Ministry ofForeign Tradeand Economic
Cooperation,
the General
Administration ofCustoms, the State
Environmental
Protection
Administration

China has two basic
laws regarding wastetransports:

International
This is acondition when dispatch
exporting items manager
containing
certaincategories ofprohibited
metals, minerals,
animal products,
laboratory
waste, industrial
residues, etc to
China.

• the Law of the People’s
Republic of China on thePrevention and Control
of Environmental
Pollution by Solid Waste(‘the Solid Waste Law’);
and•the Interim Provisionon the Administrationof Environmental
Protection in the
Importation of Waste
Materials.
These also describe theimport licensing system
and requirement for preshipping inspections.

Northwest
Territories
Waters Act
2014

Industrial
Waste
Management
Policy(National
Pollutant
Inventory)
1998

CanadaVictoria,
Australia

Northwest
Territories Water
Board

Quarterly

Received Logistics
OfficeX dateylnoeOperations
The company
managertriggers thereportingthresholds
for emissionsof carbonmonoxideand sulphur
dioxide basedon the fuelThe policy provides theconsumption
framework to report onand electricity
the types and amounts of usage.
certain chemicals being
The company
emitted to the air, land
must report by
and water and for thisinformation to be publicly 30 September
each year theavailable.
annual emissions
for the year 1
July to 30 June.

Annualby 30
SeptemberlpRecords

Corrective
actionsNonerequiredDue forrenewal
Y dateQuarterly

Mining andmineralexploration

m
a

x
E

Compliance Permit
evaluation(date /
frequency)

Compliancemanager

A water licence, type
A or B, is required forthe use of water and/or the deposit of waste
in connection with anundertaking such as
mining and milling,
advanced mineral
exploration, oil and gas
exploration, municipal
water use, hydrodevelopment, bridge
construction, flood
control, camps or lodges.

The policy aims
include reducing theexisting and potential
impacts of emissions ofwww.epa.vic.gov.au substances and to assist
government, industry
and the community inachieving the desired
environmental outcomes.
Environment
Protection
Authority

Responsible
personWater
licenceNone
required

None
NPI
requiredreports in
Environment
Department

This must be
calculated inaccordance withNPI Procedure
No. 123.

E Further information
Seek legal advice from a qualified expert about your business’s compliance with applicable law.

RJC Code of Practices Guidance

17

(COP 2) Policy and implementation
A Definitions and applicability
This provision applies to all RJC members.
Active communication means using appropriate methods and frequency for relaying information that enable the receptor toeffectively understand and act on the information.
Employees include both directly employed workers that have contracts with the RJC member and indirectly employed workers
that regularly work at members’ sites and that have employment contracts with a third party, such as a labour agent, labour
provider or contractor/subcontractor.
A policy is a statement of intentions and direction of an organisation as formally expressed by its top management.
Source:• International Organization for Standardization (ISO), Terms and definition in ISO 14001:2015—Where Did They Originate
From? (2015)
https://committee.iso.org/files/live/sites/tc207sc1/files/Terms%20and%20definitions%20in%20ISO%2014001_2015%20-%20where%20did%20they%20originate%20from.pdf

B Issue background
Policies help an organisation define accountability and expected conduct as it relates to the organisation’s operations andbusiness. Policies:• demonstrate commitment from the top;
• establish corporate responsibility and governance for key risks and issues;• create a platform for more detailed procedures and practices; and• communicate company values, principles and intentions.
Policies also serve as a set of decision-making rules and guidelines to help drive consistent behaviour within an organisation.
They also help make sure an organisation complies with applicable law.
For companies to realise the benefits of their internal policies, it is important they invest time in implementing policies within
the organisation and communicating them to all stakeholders.

C Key regulations, standards and initiatives
Most standards require companies to develop a policy as a formal demonstration of their commitment to the issue at hand.
Some demand an overarching policy committing to responsible business practices; some want specific policies relating to, forexample, health and safety or forced labour.
The Sustainable Development Goals (SDGs https://sustainabledevelopment.un.org/sdgs) are a key driver in current policy
development. These 17 goals, adopted by Heads of State at a special UN summit in September 2015, represent priority
issues for governments across the world. The SDGs build on decades of work, including through the now expired Millennium
Development Goals, and have a deadline of 2030.
The business and investor community will play a critical role in driving the SDGs’ transformational changes in society, so
it is important that companies act responsibly and consider how best to align their business operations with the SDGs.
Understanding the SDGs and how they impact the wider regulatory environment (both now and in the future), will also help
companies strengthen their licence to operate and enable them to respond to risks more effectively.

18

RJC Code of Practices GuidanceD Implementation guidance
COP 2.1: Written policy
Members shall adopt a policy/policies that documents their commitment to responsible business practices, isendorsed by senior management, is actively communicated to employees and is made publicly available.

Points to consider:• Policy statements should:•

be endorsed at the highest level of your organisation;•

set clear expectations of your employees and business partners; and•be reflected in your operational policies and procedures.

• In all cases, your policies should apply to all parts of your business covered by RJC’s certification scope.
• You can choose to incorporate all RJC-required policies within a single overarching policy or have multiple, issue-specificpolicies to comply with different RJC provisions.
•

Note that if you have multiple entities that do not operate under a central management, each one will need to have all the
RJC-required policies.

• Communicate all policies and procedures to managers, employees and any affected business partners, making sure they
understand your expectations of them and are equipped to embed the policy and procedures into their ways of working. You
should actively communicate your policies any time there are changes or incidents relating to them.
• Make sure your policies are publicly accessible, for example by posting them on your company website, or by making themavailable on request or visible to visitors.
• Consider appending relevant policies to company contracts, to raise awareness of your commitment with business partners,
service providers and suppliers.
• Update your policies as soon as possible if the nature or activity of your business changes.
• See ‘RJC policy: example template’ below for an example of a policy statement expressing commitment to achieving the
RJC COP.

RJC Code of Practices Guidance19Embedding the SDGs into organisational goals and policies
The SDGs and the COP are already aligned in a number of areas. For example, SDG 1 (No Poverty) and SDG 8 (Decent
Work and Economic Growth) are linked to COP provisions on human rights, general employment terms, working hours,
remuneration, harassment, discipline and grievance procedures, child labour, forced labour, freedom of association andcollective bargaining, non-discrimination, health and safety, use of natural resources and community development.
You should consider framing your activities and building your strategies in alignment with the SDGs. Some SDGs may be
more obviously relevant to your business than others, but you should review them all to understand where your business
may have a positive or potentially negative impact. For example:• Addressing forced labour within your supply chain helps advance SDG 8 (Decent Work and Economic Growth).
• Reducing greenhouse gases within your operations helps advance SDG 13 (Climate Action).
• Providing a safe working environment by reducing risks associated with hazardous chemicals helps advance SDG 3(Good Health and Well-being).
Take the following steps to start incorporating the SDGs into your strategic goals and company policies:

Step 1. Understand the SDGs
Familiarise yourself with the SDGs to ensure you understand their objectives and the role that businesses have inachieving them. This includes understanding the business case for integrating the SDGs into your company strategy.

Step 2. Map your activities
Map your company’s existing actions and commitments against each of the 17 SDGs. This will allow you to identify areas
where you are already helping to advance the goals, and where you can have the most impact.

Step 3. Prioritise your opportunities
Define your priorities in terms of where positive impacts can be scaled up and where negative impacts can be reduced or
avoided.

Step 4. Set your goals
Set measurable goals. This may include developing key performance indicators linked to specific SDGs.

Step 5. Integrate your commitment
Integrate your commitment to the SDGs into core business practices across the company. This includes ensuring thatyour company policies and mission/vision statements reflect your commitment to the SDGs. Broader policies related toresponsible business practices could include reference to your high-level actions to support the SDGs. Topic-specific policies(for example, on human rights or use of natural resources) can also refer to specific SDGs where applicable.

Step 6. Engage with others
Identify opportunities to engage with other stakeholders. This may include, for example, forging new partnerships or
joining existing sector initiatives to drive improved performance against the SDGs.

Step 7. Find useful business tools
Identify and use business tools (such as those listed by SDG Compass https://sdgcompass.org/business-tools/) to help youalign your business with the SDGs more effectively.

COP 2.2: Policy implementation review
Senior management shall conduct, at least annually, reviews to assess the ongoing suitability and adequacy of themember’s business practices in achieving the policy and implement improvements to address any gaps.

Points to consider:• Make sure your policies are reflected in operational procedures to embed the commitment throughout your business.
• Appoint a senior manager to monitor and manage potential non-conformances.
• Get senior management to review the policy at least once a year to assess gaps and document the results of their discussion
as evidence of conformance with COP 2.2. Reviews should also be carried out whenever there is a change in the nature ofbusiness activity.
• Make sure you address any gaps identified during the annual assessment. That might mean amending the policy itself or
simply updating your procedures to better embed the policy in business practices.

20

RJC Code of Practices GuidanceSmall businessIf you are a small business, you can still benefit from regular discussions about your ongoing commitment to responsible
business practices and RJC conformance. These can take place as part of the self-assessment process leading up to yourcertification audit, as well as after certification.
An annual discussion among senior management serves as an opportunity to review any non-conformance issues,and to check on progress against corrective action plans. If there are no non-conformances, or all these have alreadybeen addressed, use the annual discussion to explore opportunities for improvement, either within the business orin communicating the policy to stakeholders. Even brief minutes of these meetings offer objective evidence of yourconformance with this provision.

Check:■■Do you have a written policy or policies committing your company to responsible business practices?
■■Can you show how the policy has been embedded into existing business practices?
■■Has the policy been approved by senior management?
■■Does the policy clearly define expectations and has it been communicated to all employees and individuals responsible
for complying with the policy?

■■Is it available on your company website or by other means?
■■Do you review the policy and its implementation at least once a year? Can you show your auditor minutes of these‘review meetings’?

RJC policy: example template
Modify or adapt the draft policy below to suit your own business context or develop your own policy statement/s on
responsible business practices.
Responsible Jewellery Council Policy[INSERT MEMBER NAME] is a [BRIEF DESCRIPTION OF THE COMPANY].
We have [X] sites located in [Y] and employ [Z] personnel.
[MEMBER NAME] is a member of the Responsible Jewellery Council (RJC).
The RJC is a standards-setting organisation established to advance responsible ethical, human rights, social andenvironmental practices throughout the gold, silver, platinum group metals, diamond and coloured gemstone jewellery
supply chain.
The RJC has developed a benchmark standard for the jewellery supply chain and credible mechanisms for verifying
responsible business practices through third-party auditing.
As an RJC member/certified member [select as appropriate], we commit to operating our business in accordance with the
RJC Code of Practices. We commit to integrating ethical, human rights, social and environmental considerations into our
day-to-day operations, business planning activities and decision-making processes.
[Add any additional business-specific commitments as appropriate]
Signed/endorsed:
Date of effect:

E Further information
Websites:
UN Development Programme (UNDP), Sustainable Development Goals
www.undp.org/content/undp/en/home/sustainable-development-goals.html
UN Global Compact
www.unglobalcompact.org
Responsible Jewellery Council (RJC), Recent Webinars
https://www.responsiblejewellery.com/recent-webinars
SDG Compass
https://sdgcompass.org
RJC Code of Practices Guidance21

(COP 3) Reporting
A Definitions and applicability
Provision 3.1 applies to all RJC members; provision 3.2 only applies to RJC members in the mining sector.
Note that conformance with COP 3.2 automatically ensures conformance with COP 3.1.
Material issues are issues that are relevant or significant. The Materiality principle of the GRI Standards defines materiality inthe context of a sustainability report as aspects that reflect the organisation’s significant economic, environmental and social
impacts, or that substantively influence the assessments and decisions of stakeholders.
Reporting is a process for publicly communicating about an organisation’s business practices to stakeholders, such as thegovernment, investors, business partners, employees and consumers. It is sometimes called disclosure. Reporting anddisclosure can be mandatory (if it is required by law) or voluntary (if it is undertaken by choice, for example to create additionaltransparency). Reporting requirements set out in individual COP provisions are mandatory for RJC certification.
A sustainability report is a report published by a company or organisation about the economic, environmental and social
impacts caused by its everyday activities. A sustainability report also presents the organisation’s values and governance model,
and demonstrates the link between its strategy and its commitment to a sustainable global economy.
Source:• Global Reporting Initiative (GRI), About Sustainability Reporting
www.globalreporting.org/information/sustainability-reporting/Pages/default.aspx

B Issue background
Regulators, civil society, shareholders, communities, employees and customers alike increasingly want to understand how
companies impact society. To respond to stakeholder expectations, more and more companies have begun to incorporate
economic, environmental and social information into their public reporting in what are commonly called sustainability reports
or corporate responsibility reports.
Many larger companies, particularly public companies, already issue non-financial sustainability reports as part of their normal
reporting practice. The online directory Corporate Register (www.corporateregister.com) provides access to sustainability
reports issued by more than 16,000 organisations.
Financial reporting has long had to follow a common reporting framework to ensure credibility, consistency and comparability(see COP 4 Financial accounts). Various initiatives have been developed to establish the equivalent for sustainability reporting(see Section C).
The ability of a company to communicate effectively with its stakeholders is important to its long-term success, viability andgrowth. Aligning reporting and stakeholder engagement processes can help identify stakeholders’ priority issues for datacollection and reporting. Some companies include third-party commentary in their reports, for example from stakeholder
panels, community groups, unions, non-government organisations or subject-matter experts.

C Key regulations, standards and initiatives
International initiatives
The Global Reporting Initiative (GRI, www.globalreporting.org) was established in 1997 to help companies report on
their sustainability performance. GRI’s core product is a set of sustainability reporting standards (the ‘GRI Standards’) that
represent global best practice for reporting on economic, environmental and social issues. The GRI Standards, released in2016, comprise three universal standards for sustainability reporting and a series of topic-specific standards for companies
to report on their material impacts related to individual issues ranging from procurement practices to water and effluents tooccupational health and safety.
To support sector-specific sustainability impacts not covered by the GRI Standards, the GRI also publishes sector-reporting
guidance, called ‘G4 Sector Disclosures’ (www.globalreporting.org/information/sector-guidance/sectorguidanceG4). The
Mining and Metals Sector Disclosures, which was released in 2010, was originally developed for use with GRI’s pre-standards
advice (G3 Guidelines, then G4 Guidelines). Today, the mining and metals sector disclosures complement the GRI Standards
and include a set of standard specific disclosures for use by companies in the mining and metals sector. The GRI also hosts a
range of other guidance, tools, trainings and resources to help companies report with the GRI Standards.

22

RJC Code of Practices GuidanceBeyond GRI, relevant international reporting initiatives include:• AccountAbility (https://www.accountability.org/) has developed a widely used, principles-based global stakeholder
engagement standard under the AA1000 Series, which includes reporting.
• The UN Global Compact (www.unglobalcompact.org) sets out 10 principles for responsible business. All business signatories
to the compact must submit an annual Communication on Progress, which is a public disclosure of its efforts to implement
the UN Global Compact principles.
• The Sustainability Accounting Standards Board (SASB, www.sasb.org) is a not-for-profit organisation that provides
standards for publicly listed corporations in the United States to use in disclosing material sustainability issues. SASB
standards help companies comply with some mandatory filing requirements like those to the U.S. Securities and Exchange
Commission (SEC), for example Form 10-K and Form 20-F.
• The International Integrated Reporting Council (IIRC, http://integratedreporting.org) is a global coalition of regulators,
investors, companies, standard setters, accountants and non-government organisations working to promote ‘integrated
reporting’ that presents material information about an organisation’s strategy, governance, performance and prospects ina way that reflects the commercial, social and environmental context within which it operates. In 2013, IIRC launched its
International Integrated Reporting Framework to establish a set of guiding principles and content elements for creating an
integrated report.
• The UN’s Guiding Principles on Business and Human Rights1 requires companies to communicate their efforts to prevent
and address human rights risks as part of their human rights due diligence process. This communication can take various
forms, from in-person meetings, online dialogues, stakeholder consultations and formal public reporting (see COP 6.1d
Human rights).
• The Organisation for Economic Co-operation and Development’s (OECD’s) OECD Due Diligence Guidance for Responsible
Supply Chains of Minerals from Conflict-Affected and High-Risk Areas2 includes, among its five due diligence steps, annual
reporting of information on due diligence for responsible supply chains of minerals from conflict-affected and high-riskareas.
• The International Council on Mining and Metals (ICMM, www.icmm.com) outlines its members’ commitment to reportannually on economic, social and environmental performance at the corporate level using the GRI Sustainability ReportingStandards. The ICMM Assurance Procedure3 also helps guide ICMM member companies in developing their sustainability
reports and in engaging with assurance providers.
Other voluntary environmental disclosure standards include the CEO Water Mandate (https://ceowatermandate.org) and
CDP, formerly the Carbon Disclosure Project (www.cdp.net). Find out more information about these initiatives in COP 26
Wastes and emissions and COP 27 Use of natural resources.

National law
Some jurisdictions may require regular public reporting in the mining sector, or on significant environmental impacts in general.
It is important to be fully informed of all relevant legislation and regulations in every jurisdiction of operation.

1

UN Human Rights, Guiding Principles on Business and Human Rights (2011) www.ohchr.org/Documents/Publications/GuidingPrinciplesBusinessHR_EN.pdf

2

OECD, OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas, Third Edition (2016)www.oecd.org/fr/daf/inv/mne/mining.htm

3

ICMM, Sustainable Development Framework: Assurance Procedure (2008) www.icmm.com/en-gb/publications/commitments/icmm-assurance-procedure

RJC Code of Practices Guidance23

D Implementation guidance
COP 3.1: Communication to stakeholders
Members shall communicate publicly and directly with stakeholders at least annually on their business practices
relevant to the COP.

Points to consider:• Reporting to stakeholders on business practices is an ongoing activity that can be useful to consider as a set of actions thatare in three stages (see Figure 3.1).

1

2

3

PrepareDraft

PublishAnnualSustainability
reportAssign responsibility

Be ﬂexible

Review GRI guidance orequivalent

Draw on other existing
reporting systems

Post the report online

Identify relevant issues
and stakeholders

Engage stakeholders

Send it to key stakeholders

Set out issues, actions
and outcomes

Include contact information

Consider SDGs

Use appropriate channelsof communication

Figure 3.1. Key actions in each stage of reporting

Stage 1. Prepare for the report• Nominate a senior manager to oversee the preparation of your annual report or communication.
• Identify relevant issues, those that relate to the COP and are of interest to stakeholders, and those that are of concern toyou. These might include, for example, human rights due diligence, factory working conditions, promotion of responsible
business practices with business partners, reduction of wastes, local procurement or other issues raised as concerns byaffected stakeholders.
• Review relevant issues throughout the year, integrating this process where possible with regular business reviews.
• Review the GRI Standards for a general introduction to sustainability reporting and consider how your company can apply
and adopt the standard. The RJC encourages reporting in line with international standards such as the GRI or equivalent but
does not require GRI reporting (except for mining companies) as smaller businesses may want to use their own approaches.
• Identify those stakeholders (employees, civil society, business partners, etc.) that can help you identify material issues tocover in your report. In the context of sustainability, the material issues are those that reflect the organisation’s significant
economic, environmental and social impacts.
• If you measure progress against the Sustainable Development Goals (SDGs), consider reporting on:

24•

how and why you have identified specific SDGs as material to your business;•the significant impacts you have identified (positive and negative); and•the strategies and activities you have implemented to achieve your company goals with respect to the SDGs.

RJC Code of Practices GuidanceStage 2. Draft the report• Adopt a flexible, practical approach to the form and content of your report or communication, considering the scale andimpacts of your business. For example, a small business may simply want to issue an electronic memorandum or email.
You may find it useful to time your report so that it aligns with your annual policy review (as required in COP 2 Policy and
Implementation).
• In drafting your report, consider how best to communicate the following to your stakeholders:•

your company’s policies or positions on the issues at hand;•the actions you have taken, or plan to take, related to these issues or any other issue relevant to the COP—note theseactions may apply to your own operations, or may apply more broadly, for example through your involvement incommunity initiatives; and•the expected quantitative or qualitative outcomes of your actions.

• If affected stakeholders have raised a specific issue, such as an environment impact or labour rights abuse, your report
should give enough information for these stakeholders to be able to properly assess your response.
•

Note that the communication requirements related to your human rights due diligence process are outlined in COP 6.1
Human rights and COP 7 Due diligence for responsible sourcing from conflict-affected and high-risk areas.

Stage 3. Publish the report• When your report is ready to publish, disseminate it to all your stakeholders through appropriate channels ofcommunication, such as email, social media, mail-outs, etc. Proactively communicating with stakeholders in this way can help
engage them and show your efforts to uphold environmental and social commitments.
• As a minimum part of public reporting, if your company has a website, post the report online.
• Make sure you include contact information for readers to submit queries or ask for more information. This will enable you todisclose additional information based on the level of confidentiality and the situation.

COP 3.2: GRI mining and metals sector disclosure
Members with mining facilities shall publicly report annually on their sustainability performance using the Global
Reporting Initiative (GRI) Sustainability Reporting Standards or comparable reporting guidelines. The reports shallhave external assurance.

Points to consider:• The GRI provides detailed guidance for preparing a sustainability report through its GRI Standards and the G4 Sector
Disclosures for Mining and Metals. Together, these cover what a report should contain (see Figure 3.2), how to set reportboundaries, what disclosures to make, how to gather data and how to enhance a report’s credibility. Use these resources as
and when appropriate: see www.globalreporting.org.

RJC Code of Practices Guidance

25

GENERAL STANDARD DISCLOSURES Strategy and Analysis Stakeholder Engagement

 Governance Ethics and Integrity

SPECIFIC STANDARD DISCLOSURES
Category

Economic

Environmental

Aspects1

 Economic Performance Market Presence Indirect Economic Impacts
 Procurement Practices

 Materials
 Energy
 Water Biodiversity
 Emissions
 Effluents and Waste
 Products and Services
 Compliance Transport Overall Supplier Environmental Assessment
 Environmental Grievance Mechanisms

Category

Social

SubCategories

Labor Practices andDecent Work

Human Rights

Society

Product Responsibility

Aspects1

 Employment
 Labor/Management
Relations Occupational Healthand Safety
 Training and Education
 Diversity and Equal
Opportunity Equal Remuneration for
Women and Men
 Supplier Assessment forLabor Practices
 Labor Practices
Grievance Mechanisms

 Investment
 Non-discrimination
 Freedom of Association
and Collective
Bargaining
 Child Labor
 Forced or Compulsory
Labor
 Security Practices
 Indigenous Rights
 Assessment
 Supplier Human Rights
Assessment
 Human Rights
Grievance Mechanisms

 Local Communities
 Anti-corruption
 Public Policy
 Anti-competitive
Behavior
 Compliance Supplier Assessment for
Impacts on Society Grievance Mechanisms
for Impacts on Society
 Emergency
Preparedness Artisanal and Smallscale mining Resettlement
 Closure Planning Customer Health and
Safety Product and Service
Labeling Marketing
Communications
 Customer Privacy
 Compliance Materials
Stewardship

1) The word topic is used in the Guidelines to refer to any possible
sustainability subject. The word Aspect is used in the Guidelines
to refer to the list of subjects covered by the Guidelines.

Figure 3.2. Overview of GRI-recommended content for a sustainability report in the mining and metals sector
Source: GRI, G4 Sector Disclosures: Mining and Metals (2013)www.globalreporting.org/Documents/ResourceArchives/GRI-G4-Mining-and-Metals-Sector-Disclosures.pdf

26

RJC Code of Practices Guidance• Appoint a responsible senior manager to oversee the report’s production, including drafting content, and developing andimplementing strategies for report quality, data collection and external assurance.
• Establish systems for data collection, integrity and verification and make sure these fit with, and where possible draw on,
existing management systems.
• Look for any opportunity to harmonise processes across all your reporting requirements, including:•annual financial reporting;•

UN Global Compact Communication on Progress;•

revenue disclosures for the Extractive Industries Transparency Initiative;•

business contributions to the SDGs;•

human rights and due diligence reporting for COP 6 Human rights and COP 7 Due diligence for responsible sourcing
from conflict-affected and high-risk areas;•

stakeholder engagement processes (including community and employee engagement);•

regulatory reporting; and•information for ethical investment markets;• Note that members in the mining sector automatically comply with COP 3.1 by complying with COP 3.2.

Check:■■All members: Do you communicate your business practices to relevant stakeholders at least once a year?
■■All members: If you have a website, is your annual report available there?
■■Members in the mining sector: Do you prepare an annual sustainability report according to GRI Sustainability
Reporting Standards or comparable reporting guidelines?

E Further information
Websites:AccountAbility
www.accountability.org
CDP (formerly, the Carbon Disclosure Project)www.cdp.net
Corporate Registerwww.corporateregister.com
Global Reporting Initiative (GRI)
www.globalreporting.org
International Integrated Reporting Council (IIRC)
www.theiirc.org
The portal for Sustainability Reporting
www.sustainability-reports.com
Sustainability Accounting Standards Board (SASB)
www.sasb.org
Sustainability Risk Advisors
http://ratesustainability.org
UN Global Compact, The Communication on Progress (CoP) in Briefwww.unglobalcompact.org/COP/index.html

RJC Code of Practices Guidance27

Publications:AA1000 AccountAbility Principles (AA1000AP) (2018)www.accountability.org/standards/
AA1000 Assurance Standard (AA1000AS)(2008)
www.accountability.org/standards/
AA1000 Stakeholder Engagement Standard (AA1000SES) (2015)
www.accountability.org/standards/
GRI, Defining What Matters: Do Companies and Investors Agree on What Is Material? (2016)www.globalreporting.org/resourcelibrary/GRI-DefiningMateriality2016.pdf
GRI, G4 Sector Disclosure: Mining and Metals (2013)www.globalreporting.org/Documents/ResourceArchives/GRI-G4-Mining-and-Metals-Sector-Disclosures.pdf
ICMM, Sustainable Development Framework: Assurance Procedure (2008)
www.icmm.com/en-gb/publications/commitments/icmm-assurance-procedure
ICMM, Sustainable Development Framework: ICMM Principles (2015)
www.icmm.com/en-gb/members/member-commitments/icmm-10-principles
IIRC, The International <IR> Framework (2013)
http://integratedreporting.org/wp-content/uploads/2015/03/13-12-08-THE-INTERNATIONAL-IR-FRAMEWORK-2-1.pdf
KPMG, The Road Ahead: The KPMG Survey of Corporate Responsibility Reporting (2017)https://assets.kpmg.com/content/dam/kpmg/xx/pdf/2017/10/kpmg-survey-of-corporate-responsibility-reporting-2017.pdf
OECD, OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from
Conflict-Affected and High-Risk Areas, Third Edition (2016)www.oecd.org/fr/daf/inv/mne/mining.htm

28

RJC Code of Practices Guidance(COP 4) Financial accounts
A Definitions and applicability
This provision applies to all RJC members.
Audited financial statements are financial statements that a financial auditor has reviewed and found to be presented fairly
and, in all material respects, in line with the applicable financial reporting framework. The financial auditor of these financial
statements is required to:• get an understanding of the entity’s internal control and assess fraud risk;• corroborate the disclosures in the financial statements with evidence; and• submit a written opinion on whether the statements are fairly presented and adhere to the applicable financial reporting
framework.
Financial accounting involves the structured presentation of financial information, typically in four basic financial
statements—balance sheet, income statement, earnings statement and cash flow statement—and notes to these.
National and international standards include the generally accepted accounting principles of the applicable jurisdiction, which
are typically issued by a national standards-setting body (for example, the Financial Accounting Standards Board in the UnitedStates) or by the International Accounting Standards Board.
Reviewed financial statements are financial statements that an accountant has reviewed and found to require no material
modifications to conform with the applicable financial reporting framework.
A statutory audit is an audit that is required under applicable law.
Source:• American Institute of Certified Public Accountants (AICPA)
www.aicpa.org

B Issue background
Financial accounts, prepared according to a recognised accounting standard, give outside parties financial information to help
them make decisions. Financial accounting addresses potential problems that may occur when a company’s management has
information that its stakeholders do not, or when management’s incentives do not necessarily align with those of stakeholders.
Outside parties, such as investors, creditors, regulators, suppliers and other stakeholders, often want a financial auditor’sopinion on a company’s financial statements. That is why many businesses get audited financial statements. Financial audits
increase the credibility of any financial statement prepared by a company’s management.
A financial review may be a more relevant approach when a company does not require audited financial statements, such asprivate companies.

C Key regulations, standards and initiatives
Applicable law sets the specific requirements for what a financial statement must contain. Independently audited financial
statements may be legally required, depending on the nature and size of a business, its ownership structure (for example, if it ispublicly listed) and where it is located. In some cases, companies can waive the requirement for an audit.
Financial auditors should follow generally accepted auditing standards, which set out requirements and guidance on
conducting audits. Auditing standards can be set by national governments or by international organisations, such as theInternational Accounting Standards Board (IASB) or the International Auditing and Assurance Standards Board (IAASB), andthen adopted by national regulatory bodies.
The IASB (www.ifrs.org/groups/international-accounting-standards-board) develops and publishes the International Financial
Reporting Standards (IFRS) that are required in three-quarters of all G20 countries.
National regulation continues to evolve. The Sarbanes-Oxley Act (www.soxlaw.com) in the United States, for example, hasestablished significant reforms to improve the auditing and accounting procedures of public companies.

RJC Code of Practices Guidance29

D Implementation guidance
COP 4.1: Financial management
Members shall maintain financial accounts of all business transactions in accordance with national or international
accounting standards.

Points to consider:• A company’s management is responsible for preparing financial statements, which should be overseen by a qualified accountant.
• Make sure you are aware of the applicable law and of the generally accepted accounting principles for all jurisdictions inwhich you operate.

COP 4.2: Independent financial audit or review
Members shall annually undertake a financial audit or financial review in jurisdictions where permitted, by anindependent qualified accountant.

Points to consider:• Find out whether you need to carry out a statutory audit of your financial statements, and if so, what specific requirements apply.
• Make sure that any financial auditors or reviewers you use are suitably qualified and independent, in accordance withapplicable regulations and professional standards.
• Use your audit or review process as an opportunity for company management to identify and address risks that could lead tomaterial misstatements in the financial statements, including fraud.

Check:■■Do you know if there are any statutory requirements for your financial accounts? If so, can you show compliance withthese?

■■Are your financial accounts kept in accordance with national or international accounting standards?
■■Has an independent and qualified accountant audited or reviewed your financial accounts? If so, can you show your
COP auditor documentation of their credentials?

E Further information
Websites:
American Institute of Certified Public Accountants (AICPA)
www.aicpa.org
IASB, IAS 1: Presentation of Financial Statements
www.iasplus.com/en/standards/standard5
IFRS Foundation [and the International Accounting Standards Board (IASB)]
www.ifrs.org/Pages/default.aspx
International Auditing and Assurance Standards Board (IAASB)
www.iaasb.org

Publications:
Deloitte, Statutory Financial Statements: Preparing and Filing Financial Statements in Belgium (2018)www2.deloitte.com/be/en/pages/audit/articles/statutory-fs.html
U.S. Securities and Exchange Commission, Beginners’ Guide to Financial Statement (2007)www.sec.gov/investor/pubs/begfinstmtguide.htm

30

RJC Code of Practices GuidanceResponsible
supply chainsand humanrights(COP 5) Business partners
A Definitions and applicability
This provision applies to all RJC members.
A company’s ability to influence business partners will vary, depending on its economic and social context and the size andthe nature of its relationship with the business at hand. For example, small businesses that represent just a small share ofa supplier’s customer base will have less influence over that supplier than other larger customers. But small businesses
can sometimes have a large influence, for example when buying from small suppliers. COP auditors will take your ability to
influence into account when assessing your best endeavours and your compliance with this provision.
Using best endeavours means acting honestly, reasonably and with a positive effort to perform the relevant obligation. Under
this provision, it refers to an RJC member’s efforts to influence, to the best of its ability, the adoption of responsible businesspractices among its business partners.
A business partner is an organisation, business or other type of entity with which an RJC member has a direct business
relationship. This relationship can involve a contractual agreement to buy or sell any product or service related to thematerials in scope of the COP. Business partners include all contractors, agents, customers, suppliers, local and international
intermediaries or traders, and joint venture partners. They also include service providers such as security services andrecruitment agencies, or any other third parties subject to your due diligence through COP requirements or applicable law.
Business partners do not include end consumers buying products for personal use.
Employees include both directly employed workers that have contracts with the RJC member and indirectly employed workers
that regularly work at members’ sites and that have employment contracts with a third party, such as a labour agent, labour
provider or contractor/subcontractor.
A significant business partner is any business partner that is very important to the RJC member’s business, including all
major suppliers and large customers. Members should use their own judgement to determine whether a business partner issignificant or not. For example, traders that sell you coloured gemstones would be considered significant business partners
unless the volume or value of material you are buying is very small.

B Issue background
Companies operating in a global economy are increasingly asked to assume more responsibility for business ethics, humanrights, and social and environmental performance in their supply chains. For example, multinational corporations are being
held to account by investors, consumers and civil society for promoting and protecting the rights of workers, even if theseworkers are off site, or are employed through subcontracts or other outsourcing arrangements. As a result, many larger
companies are developing policies, codes of conduct, contractual obligations and monitoring systems to govern the behaviourof their business partners throughout the world.
All RJC members aspire to demonstrate responsible business practices and should expect high standards of their business
partners, including associate companies, contractors, suppliers, local and international intermediaries or traders andcustomers. The RJC does not require your business partners to adhere to the COP, unless otherwise specified (see box‘Applying the COP to business partners’ under COP 5.2). But you are expected to use best endeavours to promote and verify
responsible business practices among your business partners and to influence their behaviour, according to your scale andleverage.
The level of effort made to promote responsible business practices should take into consideration the nature of the business
partner’s practices, and the significance of its impact on workers, communities and the environment. In all cases, promoting
responsible business practices is about grasping the right opportunity to effect positive change. That means that no action isrequired if you know that business partners already use responsible business practices, are certified by a credible organisation,
can be shown to be very low risk or are highly regulated.

32

RJC Code of Practices GuidanceC Key regulations, standards and initiatives
International standards
Organisations like the International Organization for Standardization (ISO) and Social Accountability International (SAI) offera systematic approach to managing business partners through their standards, including:• ISO14001:2015 Environmental management systems(www.iso.org/standard/60857.html);• ISO 45001:2018 Occupational health and safety management systems(www.iso.org/iso-45001-occupational-health-and-safety.html); and• SA8000®Standard(www.sa-intl.org/index.cfm?fuseaction=Page.ViewPage&PageID=1689).
Through these standards, companies must give the same level of protection to indirect employees working on-site as to all
directly employed personnel. This means that companies must ensure business partners are:• made aware of hazards and controls in the same way as employees;• communicated with regularly, and given appropriate training based on the nature, scope and complexity of their work; and• evaluated and chosen based on their ability to work and supply goods within the organisation’s stipulated practices, policies
and procedures.
The UN Guiding Principles on Business and Human Rights1 requires companies to avoid causing or contributing to adverse
human rights impacts not only through their own activities, but also as a result of their relationships with business partners.
See COP 6 Human rights and COP 7 Due diligence for responsible sourcing from conflict-affected and high-risk areas for
related requirements related to business partners.

National law
Most countries have legislation to protect the well being of business partners while working on another company’s premises
and to ensure they are given adequate controls and a reasonable level of supervision. This means that, in general, you areresponsible for the lawful conduct of any business partners working on your site.
But laws vary from country to country. The RJC expects its members to be aware of the specific legislative and regulatory
requirements in their operating jurisdictions.

D Implementation guidance
COP 5.1: Promote responsible business practices
Members shall use their best endeavours, commensurate with their ability to influence, to promote responsible
business practices among their significant business partners.

Points to consider:• You are expected to cascade the expectations of responsible business practices, including respect for human rights,
throughout your business relationships. In doing so, make sure you are aware of any legal requirements or constraints on theextent to which you can require business partners to fulfil COP requirements.
• You are free to use whatever reasonable approach works for you to promote responsible business practices among yourbusiness partners. One option is to follow the three steps outlined in Table 5.1.
• Note to members and auditors: in assessing this provision, focus on what the company seeking COP certification has done topromote responsible practices (rather than what the business partner’s practices actually are).

1

UN Human Rights, Guiding Principles on Business and Human Rights (2011) www.ohchr.org/Documents/Publications/GuidingPrinciplesBusinessHR_EN.pdf

RJC Code of Practices Guidance33

Table 5.1. Three steps for promoting responsible business practices among business partners
STEP
Prioritise

1

Identify significant
business relationships

NOTES
Significant business partners are major customers or suppliers
Choose an appropriate approach to risk assessment. Use:
• your own tried-and-tested method; or• a reputable template (for example, the RJC risk assessment toolkit, which isparticularly useful for small and medium-sized businesses).
Carry out risk assessments:• for new partners, before establishing commercial arrangements; and• for existing partners, when circumstances change.
Include human rights and labour-related risks in your assessment:

Assess2

Establish the leveland nature of risks
attributed to all yoursignificant business
relationships.

• You may have already done this through due diligence to fulfil other COP
provisions (see COP 6 Human rights, COP 7 Due diligence for responsible
sourcing from conflict-affected and high-risk areas, COP 8 Sourcing directlyfrom artisanal and small-scale mining, COP 13 Security, COP 19 Child labour,
COP 20 Forced labour and COP 23 Health and safety).
• If so, use due diligence findings here. Alternatively, use an integrated approach toassess risks for each significant business partner.
Through your risk assessment, identify:• business partners whose activities pose risks of significant adverse impacts on
workers, communities or environments and those that could impact on yourreputation or performance• business partners that are already committed to responsible business practices,for example through RJC membership, or commitment to comparable initiatives,
including the UN Global Compact, SA8000®, Occupational Health and Safety
Assessment Series, ISO 14001, De Beers Best Practice Principles and the OECD
Guidance; and• business partners that you have a reasonable ability to influence.

3
EngageEngage withyour significant
business partners andraise awareness about
responsible businesspractices.

Make sure your efforts are commensurate with the opportunity to effect positivechange.
Promote responsible business practices by, for example:• giving your business partners a copy of your policy commitment to responsible
business practices (see COP 2 Policy and implementation);• appending your policy to company contracts, where relevant; and• offering training as and where appropriate.
Keep records of communications that promote responsible business practices withbusiness partners.

Small business
Small and medium-sized enterprises (SMEs) are collectively significant in the jewellery supply chain, with family-owned
retail, design and manufacturing businesses prevalent in many countries. At the mining end of the supply chain, small-scale
producers are also common in some supply chains.
Many RJC members are SMEs who take their commitment to responsible practices seriously. While small businesses may
think they don’t have much influence over larger business partners, they can still take simple steps to assess risks, identify
significant partners and communicate the importance of responsible practices and their own commitments.

COP 5.2: Contractors, indirectly employed workers and visitors
All employees and visitors to the member’s facilities shall be required to comply with the member’s policies, systems
and procedures relevant to the COP.

34

RJC Code of Practices GuidancePoints to consider:• Make sure that your business partners are aware of the activities done on your site, and that any person coming on-sitecomplies with your business systems and risk control measures. This includes any materials that are brought to, or disposedof, on your site.
• Establish and document clear reporting relationships, accountabilities and lines of communications with all employees (seebox ‘Applying the COP to business partners’).
• Give visitors a brief orientation or induction training if there is risk related to your COP compliance, for example on healthand safety or security.
• Note to members and auditors: in assessing this provision, the focus is on the actions of the RJC member company inensuring compliance of on-site contractors and third-party employers.

Applying the COP to business partners
As an RJC member, your responsibility to protect the rights of workers and communities includes anyone working
regularly on your sites. The COP therefore applies to employees, which is defined as including both directly employedworkers and indirectly employed workers who regularly work at members’ sites. This means that COP requirements
extend to your business partners who are responsible for these indirectly employed workers, including:• contractors/subcontractors (for example, for construction projects); and• any third party (such as a labour agent) that has subcontracted workers to regularly work on your site (for example,
security guards, canteen staff or seasonal workers).
You must ensure these business partners comply with all your policies and procedures on relevant COP provisions(for example, COP 13 Security, COP 15–22 Labour rights and working conditions and COP 23–27 Health, safety andenvironment) by first establishing a set of robust management systems and verifying compliance, as outlined below.

Establishing management systems• Establish procedures to:•

identify which business partners must comply with the COP;•

communicate expectations to these business partners;•

verify compliance; and•address non-conformances.

• Build on existing systems where possible. If, for example, you already have a management system for reviewing
suppliers, update this to also include your requirements of business partners.
• Communicate your expectations to all relevant business partners. The RJC encourages its members to build these
expectations into contracts, for example by including them in any new business agreement or incorporating them into
existing supplier on boarding processes.
• Include on-site contractors and workers in your training as appropriate.
• Document your procedures for assessing and communicating expectations to business partners.

Verifying compliance• Ask relevant business partners to give you copies of their own policies to show their commitment to complying with
relevant COP provisions.
• Check business partners’ compliance regularly through:•monitoring;•

desktop reviews of relevant materials, such as employee contracts or hours worked;•

interviews of indirectly employed workers; or•audits against COP provisions.

Check:■■Have you identified your significant business partners?
■■Have you assessed the level and nature of risks of working with your business partners?
■■Can you show how you have promoted responsible business practices to significant business partners?
■■Can you show how you ensure business partners responsible for indirectly employed workers comply with relevant
COP provisions?

RJC Code of Practices Guidance35

E Further information
Websites:
International Organization for Standardization (ISO), ISO 14000 Family—Environmental Management
www.iso.org/iso-14001-environmental-management.html
ISO, ISO 45001—Occupational Health and Safety
www.iso.org/iso-45001-occupational-health-and-safety.html

Publications:
De Beers, Best Practice Principles (2018)www.debeersgroup.com/~/media/Files/D/De-Beers-Group/documents/reports/library/2018/disclosure-practice-note-2018.pdf
National Standards Authority of Ireland, OHSAS 18001: Occupational Health and Safety Management (2007)
www.nsai.ie/download/certification/MD-19-02-Rev-4--OHSAS-18001-Occupational-Health-and-Safety.pdf
Social Accountability International (SAI), Guidance Document for Social Accountability 8000 (SA8000®:2014) (2016)www.sa-intl.org/index.cfm?fuseaction=document.viewDocument&documentid=563&documentFormatId=1166&vDocLinkOr
igin=1&CFID=22979020&CFTOKEN=2db102a753d2089b-A258963B-1C23-C8EB-80C2745C596B15C8
UN Human Rights, Guiding Principles on Business and Human Rights (2011)www.ohchr.org/Documents/Publications/GuidingPrinciplesBusinessHR_EN.pdf

36

RJC Code of Practices Guidance(COP 6) Human rights
A Definitions and applicability
This provision applies to all RJC members.
Adverse human rights impacts are any harmful effects on the human rights of workers, communities, consumers or otherrights-holders. Adverse potential impacts (also called human rights risks) need to be addressed through prevention or
mitigation; actual impacts are those that have already occurred and require remediation.
A company’s business relationships are defined broadly to encompass relationships with business partners, entities in its
value chain and any other state or non-state entity directly linked to its business operations, products or services. This includes
entities in its supply chains beyond the first tier and both direct and indirect business relationships.
Human rights are the universal rights and freedoms that belong to all people without discrimination. As a minimum, the RJC
understands human rights to mean those rights articulated in the International Bill of Human Rights, the International Labour
Organization (ILO) Declaration on Fundamental Principles and Rights at Work and applicable law.
Human rights due diligence is the reasonable investigation undertaken by a business to identify, assess, prevent and mitigate
human rights impacts in its supply chain.
Vulnerable groups are characterised by their higher risk and reduced ability to cope with shock or negative impacts. Theirvulnerability may be based on socio-economic condition, gender, age, disability, ethnicity or other criteria that influencepeople’s ability to access resources and development opportunities. It is always specific to the particular location and time.
Sources:• UN Guiding Principles Reporting Framework, Human Rights Due Diligencewww.ungpreporting.org/glossary/human-rights-due-diligence/• UN Human Rights, The Corporate Responsibility to Respect Human Rights: An Interpretive Guide (2012)www.ohchr.org/Documents/Publications/HR.PUB.12.2_En.pdf• UN Human Rights, Frequently Asked Questions About the Guiding Principles on Business and Human Rights (2014)www.ohchr.org/documents/publications/faq_principlesbussinesshr.pdf• UN Human Rights, What Are Human Rights?
www.ohchr.org/EN/Issues/Pages/WhatareHumanRights.aspx

Human rights due diligence and the OECD Guidance• This provision and COP 7 Due diligence for responsible sourcing from conflict-affected and high-risk areas work intandem to define the RJC’s expectations for how members conduct human rights due diligence of their supply chains.
• COP 6 addresses general expectations, and is designed to help members integrate the UN Guiding Principles on
Business and Human Rights (the ‘UN Guiding Principles’) into their operations and supply chain practices.
• COP 7 addresses the specific human rights issues related to sourcing materials from conflict-affected and high-riskareas, and is designed to help members address these by using the Organisation for Economic Co-operation andDevelopment (OECD) Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected andHigh-Risk Areas (the ‘OECD Guidance’).
• Both sets of international guidelines (the OECD Guidance and the UN Guiding Principles) are aligned andcomplementary; all RJC members are required to comply with COP 6 and COP 7.

RJC Code of Practices Guidance37

B Issue background
Human rights are relevant to all businesses, regardless of size, sector or country of operation. They include social, cultural andeconomic rights, labour rights, and civil and political rights (see Figure 6.1).

Food
Clean water and sanitation
Freedom to participate in cultural activities

Social,cultural andeconomic rights

Life andliberty
Freedom of
expression

Civil andpolitical
rightsLabour rights

Equality
before thelawFreedom from forced labour, child labour anddiscrimination
Freedom of association and collective bargaining
Legal and regular payment of wages

Figure 6.1. Three main types of human rights with a limited number of examples of each
While some human rights might sound abstract from a business perspective, they often constitute the underlying rationale forcompany policies and procedures. For example, a company’s health and safety procedures may not use human rights language
per se, but they effectively serve to respect employees’ right to life, their right to just and favourable conditions of work andtheir right to health. Similarly, a company policy on working hours respects employees’ right to just and favourable work
conditions.
Under international standards, all businesses are expected to use due diligence to assess their actual and potential humanrights impacts and to act upon their findings, tracking and communicating what they do to address any negative impacts.
Companies that source from artisanal and small-scale miners, or from conflict-affected and high-risk areas, run a greater riskof contributing (inadvertently or not) to human rights abuses, including the use of forced and/or child labour, sexual violenceand poor health and safety of workers and communities. This makes it especially important for these companies to assess
their operations and ensure robust policies and practices that protect human rights (see COP 7 Due diligence for responsible
sourcing from conflict-affected and high-risk areas and COP 8 Sourcing directly from artisanal and small-scale mining).

38

RJC Code of Practices GuidanceC Key regulations, standards and initiatives
International standards
Universal human rights are often expressed and guaranteed by international treaties, customary international law, generalprinciples and other instruments of international law. The most well known is the Universal Declaration of Human Rights(UDHR),1 adopted by the UN General Assembly in 1948. Although the UDHR is a non-binding resolution, it is now considereda central component of international customary law, along with the International Covenant on Civil and Political Rights2 andthe International Covenant on Economic, Social and Cultural Rights.3
In addition to these UN instruments and the UDHR, the ILO’s Declaration on Fundamental Principles and Rights at Work,4adopted in 1998, commits Member States to respect and promote principles and rights in four categories:• freedom of association and the effective recognition of the right to collective bargaining;• the elimination of forced or compulsory labour;• the abolition of child labour; and• the elimination of discrimination in respect to employment and occupation.
These ILO principles and rights are directly addressed in the COP through provisions 19–22 (Child labour, Forced labour,
Freedom of association and collective bargaining and Non-discrimination). They are universal and apply to all people, but
especially those with special needs, including the unemployed and migrant workers.
While none of these UN and ILO instruments are specifically directed at companies, there is a global expectation that allenterprises respect human rights no matter where they operate, or how big their operations are (see box ‘Small business’).
In 2011, the international community adopted the UN Guiding Principles on Business and Human Rights5 (the ‘UN Guiding
Principles’, also called the ‘Ruggie Principles’), which have since become the primary reference for the private sector’s
responsibility to respect human rights.
The UN Guiding Principles was designed as an operational guide to implement the UN’s three-pillared ‘Protect, Respect andRemedy Framework’ for business and human rights (see Table 6.1).
Table 6.1. The three concepts underpinning the UN ‘Protect, Respect and Remedy Framework’ on business and human rights
Protect

The state has a duty to protect against human rights abuses by third parties including business through appropriate
policies, regulation, and adjudication.

Respect

Businesses have a responsibility to respect human rights, which means to act with due diligence to avoid infringing
on the rights of others and to address adverse impacts linked to their activities.

RemedyVictims of human rights abuses have a right to effective remedy, through judicial, administrative, legislative or otherappropriate means.

In full, the UN Guiding Principles does not create new international obligations; rather, they elaborate the implications forbusinesses (and states) of existing standards and practices within a single, comprehensive template. They have been welcomedby all stakeholder groups and been incorporated into the OECD Guidelines for Multinational Enterprises,6 the International
Organization for Standardization’s ISO 26000 standard7 and the Performance Standards of the International FinanceCorporation (IFC).8 The European Union has also recognised the UN Guiding Principles as one of the cornerstones of anevolving global framework for corporate social responsibility.
Beyond the UN Guiding Principles, the OECD’s Due Diligence Guidance for Responsible Supply Chains of Minerals from
Conflict-Affected and High-Risk Areas9 (the ‘OECD Guidance’) is an important source of practical advice to help companies
respect human rights, specifically those associated with sourcing from conflict-affected and high-risk areas. Applicable toall minerals, the OECD Guidance outlines a five-step risk-based process for due diligence that companies can use to avoid
contributing to conflict through their mineral sourcing practices. The OECD Guidance forms the basis of a COP provision in its

1

UN, Universal Declaration of Human Rights (1948) www.un.org/en/universal-declaration-human-rights/

2

UN, International Covenant on Civil and Political Rights (1966) www.ohchr.org/en/professionalinterest/pages/ccpr.aspx

3

UN, International Covenant on Economic, Social and Cultural Rights (1966) www.ohchr.org/en/professionalinterest/pages/cescr.aspx

4

ILO, Declaration on Fundamental Principles and Rights at Work and Its Follow-up (1998) www.ilo.org/declaration/thedeclaration/textdeclaration/lang--en/index.htm

5

UN Human Rights, UN Guiding Principles on Business and Human Rights (2011) www.ohchr.org/Documents/Publications/GuidingPrinciplesBusinessHR_EN.pdf

6

OECD,OECD Guidelines for Multinational Enterprises (2011) www.oecd.org/daf/inv/mne/48004323.pdf

7ISO, ISO 26000—Social Responsibility www.iso.org/iso-26000-social-responsibility.html

8IFC, Performance Standards
www.ifc.org/wps/wcm/connect/Topics_Ext_Content/IFC_External_Corporate_Site/Sustainability-At-IFC/Policies-Standards/Performance-Standards

9OECD,OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas, Third Edition (2016)www.oecd.org/fr/daf/inv/mne/mining.htm

RJC Code of Practices Guidance

39

own right (see COP 7 Due diligence for responsible sourcing from conflict-affected and high-risk areas) but, given the strong
links with the UN Guiding Principles, is also referenced in the sections below.

Small business
The UN Guiding Principles makes it clear that small businesses also have a responsibility to respect human rights. Smalland medium-sized enterprises (SMEs) often have less capacity and more informal structures than larger companies, but amore informal approach to respecting human rights can still be effective, as long as there is a policy, a fit-for-purpose due
diligence process and a process to enable remedy.
Source:• UN Human Rights, Guiding Principles on Business and Human Rights (2011)www.ohchr.org/Documents/Publications/GuidingPrinciplesBusinessHR_EN.pdf

National law
Human rights principles are enshrined in the national laws of most countries, and businesses face an increasingly regulated
operating environment when it comes to respecting human rights (see box ‘Recent regulations’).
Most national jurisdictions prohibit complicity in committing a crime, and several allow for businesses to be criminally liablein such cases. Other laws including those on labour rights, occupational health and safety, non-discrimination, privacy and theenvironment also include protection for human rights. Some national courts have accepted or instigated lawsuits alleging thatmultinational companies based in their country have knowingly contributed to human rights violations in other countries.
Government sanctions and restrictions may apply to commercial transactions with certain regions or countries.
RJC members are expected to comply with all applicable laws and to respect internationally recognised human rights wherever
they operate. In situations where national law is not strongly enforced, or does not go as far as, or conflicts with, internationallyrecognised rights, respecting human rights can be difficult. In these situations, companies should try to meet the intent ofinternational standards while complying with national law. Companies should also be aware of the broader legal and otherrisks outside their country of operation.

Recent regulations
The global regulatory environment is changing as more countries adopt modern slavery, due diligence and transparency
laws. Each law defines different expectations of what is required of businesses based on their size, scale, industry andgeographic footprint. Some of the most recent key legislation to come into force is summarised below.

2015 UK Modern Slavery Act and 2018 Australian Modern Slavery Act
The UK and Australian legislation both aim to combat human trafficking and slavery. They both include a transparency
clause, which requires any company with operations in the UK or Australia above a certain size threshold to publish
an annual statement laying out steps to manage and mitigate the risk of forced labour in supply chains. In the UK, thethreshold is annual turnover of more than £36 million and in Australia it is consolidated revenue above A$100 million.
Failure to comply with the UK act can lead to an injunction and an unlimited fine.

2010 California Transparency in Supply Chains Act
The California Transparency in Supply Chains Act applies to retail sellers or manufacturers that operate in California andhave an annual turnover of more than US$100 million. The Act requires all relevant companies to disclose information
about their efforts to eradicate slavery and human trafficking from their supply chains, including how they are doing:
verification, auditing, certification, accountability and training. Companies failing to comply with the Act are subject to an
injunction by the California attorney general.

The 2017 French Duty of Vigilance Law
The French Duty of Vigilance Law covers large limited liability companies with more than 5,000 employees in France(or 10,000 worldwide). Under the new law, these companies must establish and implement mechanisms to prevent
human rights violations, health and safety hazards and environmental impacts throughout all their chains of production.
These mechanisms are expected to ensure the company can effectively identify, mitigate, remediate and report on thesepotential and actual risks each year as part of a ‘vigilance plan’. While there are no financial penalties for failing to comply
with the new law, a company can be held liable for any harm caused through its negligence to an individual or a group.

40

RJC Code of Practices GuidanceD Implementation guidance
COP 6.1: UN guiding principles
Members shall respect human rights by considering all potential and actual impacts in their operations and business
relationships. They shall also commit to, and implement, the UN Guiding Principles on Business and Human Rights asappropriate to their size and circumstances.

Points to consider:• The UN Guiding Principles provides the basis for you to know and show that your business respects human rights. In
practice, this means implementing an approach that includes at the very minimum four key components:•a written policy;•

a process for due diligence;•a remedy mechanism; and•a communication plan (see Figure 6.2).

These are considered in turn in the provisions that follow.
• Your approach needs to apply to all your own operations as well as all your business relationships, including your contractors
and suppliers. See Table 6.2 on ways companies can be involved with adverse human rights impacts.
• Note that in implementing your approach to respect human rights, you are expected to adhere to both the UN Guiding
Principles (COP 6) and the OECD Guidance (COP 7). The implementation framework across both sets of guidelines isaligned, and you can fulfil both related COP provisions using an integrated approach (see Figure 6.2).

UN Guiding Principles

6.1A

Commitment
to respecting
human rights

OECD Guidance
PolicyA written policy on your own operations and yoursupply chain that outlines your commitment, and isreﬂected in operational processes and procedures.

Commitment
to responsible
supply chains

Due diligence
6.1B

Focus on your own
operations andsupply chains

6.1C

Remedy as per
your involvement(cause, contributeor link to)

6.1D

Report to internaland external
stakeholders

An effective due diligence process that is overseen andcoordinated through effective management systems.
That includes a review to identify and assess human rights
impacts, a strategy and action plan to respond to identiﬁed
impacts, and ongoing monitoring and evaluation of efforts.

RemedyAppropriate remedy for any identiﬁed actual impact,
and action to stop it happening again.

Communication
Reporting on your efforts to prevent and addresshuman rights impacts, at least once a year.

S1

S2
Focus on yoursupply chains

S4

Focus on yoursupply chains

S3

Informationneeded varies
with business type

S5

Figure 6.2. An integrated approach to addressing human rights for both the UN Guiding Principles (COP 6) and OECD
Guidance (COP 7)*S = Step in the OECD Guidance framework for due diligence

RJC Code of Practices Guidance

41

COP 6.1A: Written policy
As a minimum, members shall:a. Have a policy commitment, endorsed at the highest level of their organisation, to respect human rights within theiroperations and business relationships and procedures for implementing the policy in alignment with COP 2 (Policy andimplementation).

Points to consider:• At a minimum, a human rights policy is a public statement committing an organisation to respect human rights.
• Your policy statement can be a stand-alone one (incorporated within COP 7 Due diligence for responsible sourcing
from conflict-affected and high-risk areas) or part of an overarching company policy (as part of COP 2 Policy andimplementation). Either way, your statement should be:•endorsed at the highest level of your organisation;•clear on expectations of employees, business units, suppliers and subcontractors (this will help ensure everyone
understands their role in delivering the policy);•publicly available; and•proactively communicated to your relevant stakeholders.

• To develop an effective policy, you should make a senior manager responsible for leading the process and establish a crossfunctional team to help draft it. Once you have a draft you should review it against internally recognised human rights andconsult with external stakeholders before finalising it. Several websites and publications exist on developing a human rights
policy that can help you (see ‘Further information’ below).
• Once you have a final human rights policy, review your internal processes and procedures to ensure it is reflected inoperational practices. Assign responsibility to someone in each business area to review and, where necessary, update all
relevant processes and procedures. This should be done periodically to make sure operations reflect the human rights policy.

COP 6.1B: Human rights due diligence
As a minimum, members shall:b. Have a human rights due diligence process to identify, prevent, mitigate and account for adverse human rights impacts
that are connected to their business.

Points to consider:• The UN Guiding Principles (and the OECD Guidance) stipulate not only what businesses should do in relation to humanrights, but also suggest how they should do it.

42•

The what is to avoid causing or contributing adverse human rights impacts and to remedy any impacts identified.

•

The how is the human rights due diligence process you carry out to identify, prevent, mitigate and account for how you
address adverse human rights impacts.

RJC Code of Practices Guidance• There are three ways your company can be involved with adverse human rights impacts: cause, contribution and linkage(see Table 6.2).
Table 6.2. Three ways companies can be involved with adverse human rights impacts
Type of involvement

Cause

Contribution

Examples• Failing to pay wages to employees.

• Discriminating in treatment of workers.
A company is a necessary• Exposing factory workers to hazardous working conditions without adequate
and sufficient actor forsafety equipment.
the harm to occur.
• Dumping chemical effluents from production processes into waterways, directly
polluting local communities’ drinking water.

A company exacerbates
the harm, but is not a
sufficient actor for it tooccur.

• Changing production requirements for suppliers at the last minute without
adjusting production deadlines and prices, thereby pushing suppliers to breachlabour standards to deliver.
• Working with a subcontractor that is using non-voluntary prison labour to work infactories.
• Relying on on-site labour agents using deceptive tactics to recruit migrant
workers, who are then forced into debt to pay recruitment-related fees.

Linkage

A company is linked
to harm, but the harm
would have been just as
severe without it.

• Migrant labour abuse at a supplier’s manufacturing site, despite explicit policies
against such activities and confirmation from suppliers that such policies are
implemented.
• A supplier subcontracting parts of production to child workers in homes, incontradiction to contractual obligations and without any specific procurement
pressures from the company.
• Suppliers using raw stones sourced through an agent originating from mines thatallow child workers to perform hazardous work endangering their health.

• Your human rights due diligence will need to be able to address all three ways that your company can be involved withadverse human rights impacts. It is important to know how you are involved with the impact, because that will determine
how you are required to remedy it. The most challenging type of involvement to assess is ‘linkage’. Your company is ‘linked’
to a human rights impact if it is connected to your operations, products or services but you are not causing or contributing to
the human rights impact through your own activities.
• Put someone in charge of overseeing your human rights due diligence. Make sure it is someone senior and able to convene
staff from across the company; this person will be accountable for all steps in the due diligence process.
• Assemble a core ‘due diligence’ team. If you have a small business, your team doesn’t have to be big, but it should include thestaff who are in charge of all relevant areas of business such as human resources, finance, legal, procurement, compliance,
audit, risk, product or materials management, and other functions.
• If you have the budget available, consider hiring external topic experts to help with your due diligence.
• Your human rights due diligence will necessarily vary in complexity, depending on your company’s size, the risk of severe
human rights impacts and the nature and context of your operations. But in all cases, it will need to include four steps:
1. Assessing actual and potential human rights impacts.
2. Integrating and acting upon the findings.
3. Tracking responses.
4. Communicating how impacts are addressed.
• This four-step process, articulated in the UN Guiding Principles, is rooted in a risk management approach that is largely
familiar to companies in the jewellery supply chain. But its application to human rights and business relationships can taketime to implement. Members and auditors should consider the need for systems to be put in place over successive years aspart of a continual improvement process.
• Specific guidance for each of these steps is included below. Note that for human rights due diligence you can:•implement a stand-alone process (in alignment with COP 7 Due diligence for responsible sourcing from conflict-affected
and high-risk areas);•

integrate it into an existing risk and impact assessment; or•use the RJC risk assessment toolkit.

RJC Code of Practices Guidance43• Risks can change over time; your due diligence should be ongoing and regularly reviewed. The frequency of your review
should be risk-based and triggered by changes in your business, for example:•

every time you start a significant new activity or business relationship;•

if you receive a grievance or allegation;•

if you start sourcing new products or from a new country; or•if the country you are operating in, or sourcing from, undergoes a change that affects the risk of human rights (for example,
political change).

Step 1. Assess impacts• You must first develop an understanding within your company of how human rights relate to what your company does, andnot just in terms of frequently discussed issues such as working conditions.10• You can assess human rights impacts as a separate exercise in due diligence, or as part of a broader risk management system.
Either way, you must be able to show that your assessment goes beyond material risks to your own company to focus onassessing the impacts to rights-holders such as customers, employees, suppliers, communities and other stakeholders (seebox ‘Salient human rights risks’).
• Your assessment, however approached, should include a review of potential and actual risks and impacts:•from your own business’s operations; and•arising through your business relationships. Use the OECD Guidance to map key human rights risks related to yoursuppliers (see COP 7 Due diligence for responsible sourcing from conflict-affected and high-risk areas).

• When reviewing your risks and impacts, ask yourself who is at risk, where and why. Consider the following questions:11•

Who might be adversely affected by our operations? Is anyone particularly vulnerable?

•

Are there circumstances in which we need a stand-alone human rights impact assessment because human rights risks are
particularly high?

•What other internal and external sources of information can we draw on to help us: media, expert reports, feedback fromstaff and stakeholders, grievance mechanism?

•

Can we engage potentially affected groups directly? If not, what other credible sources can help us understand their views
and concerns?

•

What written resources or experts can help us test our assumptions?

• It might not be feasible or practical for you to assess every single supply chain risk. Indeed, the UN Guiding Principles is notintended to make you scrutinise the human rights record of every company you do business with. If you have to prioritise
your efforts, you should focus on the most salient human rights risks (see box ‘Salient human rights risks’).

Salient human rights risks
Salient human rights risks are the human rights at risk of the most severe negative impact through a company’s activities
and business relationships. They impact people (rather than businesses) and have the potential to actually occur. They
include (but are not restricted to) security, child labour, forced labour and human trafficking, health and safety, freedom of
association and the right to collective bargaining, discrimination and gender equality, disciplinary practices, working hours,
remuneration, indigenous peoples and sourcing from artisanal and small-scale mining or conflict-affected areas.
Source:• UN Guiding Principles Reporting Framework, Salient Human Rights Issues
www.ungpreporting.org/resources/salient-human-rights-issues

44

10

Assessing Human Rights Risks and Impacts: Perspectives from Corporate Practice (2016)
https://www.globalcompact.de/wAssets/docs/Menschenrechte/Publikationen/Assessing-Human-Rights-Risks-and-Impacts.pdf

11

UN Human Rights, The Corporate Responsibility to Respect Human Rights: An Interpretive Guide (2012) www.ohchr.org/Documents/Publications/HR.PUB.12.2_
En.pdfRJC Code of Practices GuidanceAssessing impacts as an SME
If you are a small company with few staff and limited resources available to assess your human rights impacts:• Use publicly available resources to create a list of human rights risks to assess, both in your own operations and in yoursupply chain.
• Prioritise from that list based on salience in your particular context. For example:•

If you rely on contracted labour, prioritise a review of recruitment practices (to verify that they are ethical and thatyour workers aren’t at risk of forced labour).

•If you use hazardous chemicals, prioritise a review of on-site procedures (to confirm there’s no risk of environmental
pollution, which could harm nearby communities).

•

If you are an office-based business, prioritise a review of historical employee feedback (to identify risks such as
excessive working hours or unequal pay).

Step 2. Integrate and act on findings• Once you have assessed your human rights risks and impacts, you need to act on your findings. Actual risks or impacts need to beaddressed as soon as possible to make sure they don’t materialise or happen again. Appropriate action will depend on whether
you have caused or contributed to the impact or been linked to it. For the former, you will need to cease and prevent whatever iscausing or contributing to the impact. For the latter, you will need to use your leverage to prevent the impact from happening.
• If actual human rights impacts have occurred, you will need to provide for or support legitimate efforts to remedy them as
outlined in COP 6.1c below.
• Assign identified risks and impacts to key staff in relevant areas of business and make them responsible for reviewing
existing practices to identify the root cause of the risk and how to prevent reoccurrence. For example, if you find that yourstaff are not getting paid accurately, ask human resources to update their processes to stop this from happening again.

Step 3. Track responses• All companies are expected to track their performance.
• Make sure everyone responsible for reviewing and updating practices reports to the core due diligence team regularly.
• Your tracking activities should relate to actual impacts, and what is being done to manage or remedy them, rather thansimply tracking processes or procedures.
• If you are a small business, consolidate all your tracking activities and make someone specifically responsible for reviewing
them; this will help you when it comes to communicating your findings later.

Step 4. Communicate efforts• Communication is the last step in human rights due diligence; it is also the subject of COP 6.1d. See below for specificguidance on this topic.

COP 6.1C: Remedy mechanism
As a minimum, members shall:c. Provide for, or support legitimate processes to enable, the remedy of any adverse human rights impacts that they havecaused, contributed to or been linked with.

Points to consider:• If your company has caused or contributed to an adverse human rights impact, you must provide for, or support, legitimate
processes to remedy it. In situations where you may be linked to a negative human rights impact, you do not have direct
responsibility to provide remedy, although you are still expected to support the actions of others, such as a government
agency or court, to do so.
• At its core, the concept of remedy aims to restore those that have been harmed by a company’s activities to the situation
they would have been in had the impact not occurred. This is not always possible, so in practice, remedy can take many forms:
acknowledgement and apology, compensation (financial or other) for the harm, or other (see box ‘Remedy in practice’).
• Prioritise the remedy process based on the severity of the impact at hand. In all cases, consider how to communicate
progress and outcomes in situations of remedy.

RJC Code of Practices Guidance45

• You must co-operate with, and not impede access to, any legitimate state-based judicial and non-judicial grievancemechanisms, as well as any other relevant non-state mechanism, to support those seeking remedy through these channels.
That includes not undermining the rights of legitimate trade unions.
• You must also have your own operational grievance mechanism that allows you to receive, process and provide adequate
response or remedy for grievances. Make sure your mechanism allows grievances to be raised by:•employees or other on-site workers;•

stakeholders within the communities where you operate; and•affected groups or individuals (see also COP 32 Stakeholder engagement).

• You can establish a stand-alone mechanism to deal with human rights impacts, or use an integrated mechanism that covers
other areas of your business too (see COP 18.3 Harassment, discipline, grievance procedures and non-retaliation).
• Where complaints are raised via the RJC complaints mechanism that can be resolved through engagement and dialogue atthe operational level, they will be first directed to the RJC member.

Remedy in practiceThere is no single recipe for remedying human rights impacts. A good general resource for exploring remedy options is
the Human Rights and Business Dilemmas Forum (https://hrbdf.org/), which hosts a broad range of case studies showing
how different businesses have addressed human rights dilemmas. Similarly, the Human Rights Translated 2.0: A Business
Reference Guide (www.ohchr.org/Documents/Publications/HRT_2_0_EN.pdf) uses real-life situations companies
encounter as case studies.
Providing remedy can be complex and fraught with tension depending upon the scale and types of human rights impacts
to be remedied. The process of seeking remedy can be more successful when a third party is involved in developing it. For
example, in 2017, Barrick Gold Corp commissioned an independent report to help improve access to remedy for people
harmed at or around its Porgera Gold Mine in Papua New Guinea. In this case, they worked with the non-governmentalorganisation (NGO) Business for Social Responsibility (BSR), who engaged in a year-long process of research andengagement with local, national and international stakeholders. The resulting report lays out a road map for how Barrick
can determine remedy.12
In other cases, providing remedy can be more straightforward, such as Apple’s efforts against bonded labour. To protect
vulnerable migrant workers, Apple has a policy that prevents suppliers from charging workers excessive recruitment fees.
Under this policy, suppliers must reimburse any fee greater than one month’s net wages. The policy is enforced as part of Apple’s
regular bonded labour audits and to date, Apple suppliers have reimbursed nearly US$17 million in recruitment fees since 2008.
Regardless of the impact caused, businesses are encouraged to consult stakeholders, including affected individuals, local
NGOs and subject-matter experts, to help create an action plan to provide the appropriate remedy based on the situation,and put in place controls to mitigate future risks and prevent any unintended consequences that could further harm theindividuals whose human rights were impacted.
12

COP 6.1D: Communication plan
As a minimum, members shall:d. Communicate annually with stakeholders about their human rights due diligence efforts and remedy activities annuallyin accordance with COP 3 (Reporting).

Points to consider:• Under both the UN Guiding Principles and the OECD Guidance, companies are expected to communicate about their efforts
to prevent and address human rights risks as part of their due diligence process. That means communicating internally(for example, between business units) and externally (including with affected groups, civil society organisations, local
communities, topic experts, investors and any other interested party).
• There are lots of different ways you can communicate with these stakeholders, for example by:

12

46

•

issuing a regular sustainability report;•

writing a letter or email;•publishing information on your website; or•

having a meeting or other face-to-face engagement.

BSR, In Search of Justice: Pathways to Remedy at the Porgera Gold Mine (2018) www.bsr.org/en/our-insights/report-view/porgera-gold-mine-barrick-pathways-toremedy.

RJC Code of Practices Guidance• Members that belong to larger groups can choose to report annually either on an individual basis or on a consolidated groupbasis if it is clear which individual companies are part of the group and any company-specific information related to thehuman rights is disclosed.
• Wherever and whenever you identify a human rights risk, communicate with potentially affected stakeholders to explain
how you are addressing the risk; consider literacy, language and cultural communication barriers.
• Similarly, if you identify a human rights impact, do not wait for someone to ask for more information. Get in touch with thoseaffected as quickly and directly as possible and give them all the safety and welfare information they may need; at the sametime, share your plans for managing the impact and providing remedy.

Check:■■Can you show the auditor a written policy commitment to respect human rights (either as a stand-alone policy or as
part of another one)?

■■Do your operational procedures and the expectations you make of business partners match your company’s humanrights policy?

■■Can you show the auditor how you have carried out your human rights due diligence? Have you done a risk assessment
to assess and identify human rights risks and impacts?

■■Have you made efforts to integrate the results of your risk assessment into business operations?
■■Can you show the auditor how you communicated with stakeholders about identified human rights risks (for example,
by providing copies of reports, letters or meeting minutes)?

■■Do you know if you caused, contributed to or are linked to any human rights impact?
■■Can you show how you have provided for, or co-operated in, remedy processes as and where appropriate?
■■Can you show how you are tracking and communicating your efforts to address impacts (for example, through yourgrievance mechanism protocol, investigations and outcome records)?

Q&A: Human rights
1. Do I have to use the term ‘human rights’ in my policy statement?
Yes. For some businesses, particularly SMEs, it might be relevant to frame a human rights statement around specific issues
that have tangible meaning to employees, such as worker health and safety, labour rights, responsible business practices or
responsible sourcing efforts.

2. If I have a contractual relationship with another company, am I ‘contributing’ to all the adverse impacts thatthey may cause?
Not necessarily: the key issue is the actual impact itself and how it has happened, not that you have a business relationshipwith them. If your business partner causes an adverse impact as an unintended consequence of an action of yours, thenyou have ‘contributed’ to that impact. For example, if your supplier is forced to breach labour standards to fulfil an orderthat you changed at last minute without adjusting production deadlines and prices, you may be considered to have‘contributed’ to the breach. In situations where your business, products or services may be linked to a negative humanrights impact, you do not have direct responsibility to provide remedy. You do, however, have the opportunity to use yourleverage to work with others to ensure remedy is provided. You also have an opportunity to use leverage to prevent andmitigate future adverse impacts.

3. What if my business has no leverage with my suppliers? If I identify adverse human rights impacts by that
supplier, what should I do?
If you find that your supplier is causing adverse human rights impacts, you can try to influence their practice by offering
capacity building or other incentives. Alternatively, you can consider ending your relationship; but in making this decision you
should also assess the potential adverse human rights impacts of doing so. Ending the relationship might also be difficult if
the supplier provides an essential product or service for which there is no reasonable alternative source. In this situation, you
may decide to prolong the relationship, after careful review of the legal and non-legal consequences to your company and theseverity of the human rights impact. The more severe the impact, the quicker you should try to find an alternative.

4. Does human rights due diligence involve a full audit of all my business partners?
The UN Guiding Principles is not intended to require you to assess the human rights record of every company you do
business with, and the COP does not require this. In cases where human rights risks are high, you may choose to audit orvisit your business partners as part of your due diligence process. Due diligence is an ongoing process: you may want toconsider mechanisms such as capacity building or contractual provisions to help prevent or mitigate impacts over time.

5. What does a human rights due diligence process look like for a small business?
The RJC Human Rights Due Diligence Toolkit offers a template for due diligence specifically designed for small business use.

RJC Code of Practices Guidance47

E Further information
Websites:
Business &Human Rights Resource Centre, Jewellerywww.business-humanrights.org/Categories/Sectors/Consumerproductsretail/Jewellery
Business & Human Rights Resource Centre, UN Guiding Principles on Business and Human Rights (six languages)
www.business-humanrights.org/UNGuidingPrinciplesPortal/HomeUN Global Compact, Human Rights: Tools and Guidance
https://www.business-humanrights.org/en/documents/un-global-compact-human-rights-tools-guidance-local-networkactivities
UN Human Rights, What Are Human Rights?
www.ohchr.org/EN/Issues/Pages/WhatareHumanRights.aspx

Publications:
Alliance for Responsible Mining (ARM), Approaching Artisanal and Small-Scale Mining Through the Lens of Human Rights: A
Call for International Action (2013)
http://www.responsiblemines.org/wp-content/uploads/2018/05/059_Human_Rights_and_ASM_full-version.pdf
Business & Human Rights Initiative/Global Compact Network Netherlands, How to Do Business with Respect for Human
Rights: A Guidance Tool for Companies (2010)https://www.unglobalcompact.org/docs/issues_doc/human_rights/Resources/how_to_business_with_respect_for_human_rights_gcn_netherlands_june2010.pdf
Ethical Trade Initiative, Human Rights Due Diligence Framework
www.ethicaltrade.org/sites/default/files/shared_resources/eti_human_rights_due_diligence_framework.pdf
European Commission, My Business and Human Rights. A Guide to Human Rights for Small and Medium-Sized Enterprises(2012)
https://www.business-humanrights.org/sites/default/files/documents/SME-BHR-guide-EU.pdf
Global Compact Network Germany, Five Steps Towards Managing the Human Rights Impacts of Your Business (2015)www.globalcompact.de/wAssets/docs/Menschenrechte/Publikationen/5_steps_towards_managing_the_human_rights_
impacts_of_your_business.pdf
Harvard Kennedy School, Rights-Compatible Grievance Mechanisms: A Guidance Tool for Companies and their Stakeholders(2008)
https://www.unglobalcompact.org/library/57
Institute for Human Rights and Business, State of Play: The Corporate Responsibility to Respect Human Rights in Business
Relationships (2012)www.ihrb.org/pdf/state-of-play/State-of-Play-Full-Report.pdf
International Council on Mining and Metals, Integrating Human Rights Due Diligence into Corporate Risk Management
Processes (2012)www.icmm.com/website/publications/pdfs/social-and-economic-development/3308.pdf
Monash University, UN Global Compact and UN Human Rights, Human Rights Translated: A Business Reference Guide 2.0(2016)
www.ohchr.org/Documents/Publications/HRT_2_0_EN.pdf
OECD, OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk
Areas—Supplement on Gold, Third Edition (2016)www.oecd.org/fr/daf/inv/mne/mining.htm
Rio Tinto, Why Human Rights Matter (2013)www.riotinto.com/documents/ReportsPublications/Rio_Tinto_human_rights_guide_-_English_version.pdf
Shift, Remediation, Grievance Mechanisms and the Corporate Responsibility to Respect Human Rights (2014)www.shiftproject.org/resources/publications/remediation-grievance-mechanisms-corporate-responsibility-respect-humanrights/
Social Accountability International (SAI), United Nations Guiding Principles on Business and Human Rights: A Six-Step
Approach to Supply Chain Implementation (2012)
http://www.sa-intl.org/_data/global/files/SAI-ICCO-UNGP-Handbook.pdf

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RJC Code of Practices GuidanceUN Global Compact, Guidance on Responsible Business in Conflict-Affected and High-Risk Areas: A Resource for Companies
and Investors (2010)www.unglobalcompact.org/docs/issues_doc/Peace_and_Business/Guidance_RB.pdf
UN Global Compact, A Guide for Business: How to Develop a Human Rights Policy, Second Edition (2015)
www.unglobalcompact.org/docs/issues_doc/human_rights/Resources/HR_Policy_Guide_2nd_Edition.pdf
UN Human Rights, The Corporate Responsibility to Respect Human Rights: An Interpretive Guide (2012)www.ohchr.org/Documents/Publications/HR.PUB.12.2_En.pdf
UN Human Rights, Guiding Principles on Business and Human Rights (2011)www.ohchr.org/Documents/Publications/GuidingPrinciplesBusinessHR_EN.pdf
UN Human Rights, How to Develop a Human Rights Policy (2011)www.ohchr.org/Documents/Publications/DevelopHumanRightsPolicy_en.pdf
UN Working Group on Business and Human Rights, Companion Note II: Corporate Human Rights Due Diligence—Getting
Started, Emerging Practices, Tools and Resources (2018)www.ohchr.org/Documents/Issues/Business/Session18/CompanionNote2DiligenceReport.pdf

RJC Code of Practices Guidance

49

(COP 7) Due diligence for responsible
sourcing from conflict-affected
and high-risk areas
A Definitions and applicability
This provision applies to all RJC members.
Conflict-affected and high-risk areas (CAHRAs) are identified by the presence of armed conflict, widespread violence(including violence generated by criminal networks) or other risks of serious and widespread harm to people. Armed conflictmay take a variety of forms, such as conflict of international or non-international character, which may involve two or morestates, or may consist of wars of liberation or insurgencies, civil wars, etc. High-risk areas may include areas of politicalinstability or repression, institutional weakness, insecurity, collapse of civil infrastructure and widespread violence. Such areas
are often characterised by widespread human rights abuses and violations of national or international law. A CAHRA canbe a region, a country, an area within a country or an area that crosses one or more national boundaries. Operations are notnecessarily complicit in conflict if they are located in a CAHRA.
Conflict diamonds are rough diamonds used by rebel movements or their allies to finance conflict aimed at undermining
legitimate governments, as described by the UN Security Council (UNSC) and as recognised by the UN General Assembly(through resolution A/RES/55/56).1
The origin of mined material is the mine, company, region or geographical location where the mine is located, whether anartisanal and small-scale mine or a medium or large-scale one. The origin of recycled material is the point at which it re-enters
the jewellery supply chain. For recycled gold, silver or PGM, this is the point at which it is returned to the refiner or otherdownstream intermediate processor or recycler.
A red flag is a warning or indicator of a potential risk. In the context of due diligence, a red flag can be a location, supplier or
circumstance that triggers a need for enhanced due diligence (that is, further investigation).
In the context of due diligence, risk (or supply chain risk) is the potential for adverse impacts which result from a company’s
own activities or its relationships with suppliers and other entities in the supply chain. High-risk supply chains are those,
as defined in the Annex II risks’ list of the OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from
Conflict-Affected and High-Risk Areas, with the potential for serious human rights abuses, direct or indirect support to nonstate armed groups or public or private security forces, bribery and fraudulent misrepresentation of the origin of minerals,
money laundering and non-payment of taxes and royalties due to governments.
Risk-based due diligence is the reasonable investigation undertaken by a business to identify, assess, prevent and mitigate
risks in its supply chain where the level of supply chain scrutiny is commensurate with the identification of risks.
The source of material is the geographical place, person or company from which the material is obtained. The source of minedmaterial is:• For gold, silver or PGM: the mine or country of mining origin.
• For diamonds or coloured gemstones: for upstream companies and Tier 1 midstream companies, this is the mine or countryof mining origin, company and/or region. For Tier 2 midstream and downstream companies, the source will be the roughexporter (first export from country of mining origin), or Tier 1 midstream company suppliers if possible, and if not, thefurthest known point in the upstream supply chain.
The source of recycled material is the same as its origin.
Sources:• The Kimberley Process Certification Scheme
www.kimberleyprocess.com• OECD, OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk
Areas, Third Edition (2016)www.oecd.org/fr/daf/inv/mne/mining.htm

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UN General Assembly, The Role of Diamonds in Fuelling Conflict: Breaking the Link Between the Illicit Transaction of Rough Diamonds and Armed Conflict as aContribution to Prevention and Settlement of Conflicts (2001) https://undocs.org/en/A/RES/55/56

RJC Code of Practices GuidanceB Issue backgroundAll kinds of companies use due diligence to inform their decision-making in risk management. In the context of this provision,due diligence refers specifically to the reasonable investigation undertaken by a business to identify and assess risks related toconflict-affected and high-risk areas (CAHRAs). These are outlined in Annex II of the Organisation for Economic Co-operation
and Development’s (OECD’s) Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected andHigh-Risk Areas (the ‘OECD Guidance’)2 and include gross human rights violations, torture, forced or compulsory labour, war
crimes, support to non-state armed groups or public or private security forces, bribery and fraudulent misrepresentation of theorigin of minerals, money laundering and non-payment of taxes (see box ‘CAHRAs and Annex II risks’).
Due diligence provides companies with the information they need to identify risks in order to prevent or mitigate adverse
impacts associated with their sourcing practices. Companies that source or use minerals from CAHRAs can also play aneffective role in supporting livelihoods, economic growth and prosperity, and due diligence enables this. Due diligence is anactive process, which results in a responsible sourcing programme that is:• Ongoing: seamlessly integrated into a company’s management systems and daily processes.
• Proactive: designed and implemented to identify and mitigate risks to prevent negative outcomes.
• Reactive: able to respond promptly to risks (both actual and potential).
• Risk based: with a level of detail and effort that matches the potential risk in a company’s supply chains.
• Allowing for continuous improvement: companies may be starting with very little understanding of risks in their supply
chains and work to improve their systems and understanding over time.
The OECD Guidance offers specific recommendations through a five-step framework which is global in scope and can beapplied to all mineral types (see Figure 7.1).

Establish
management
systemsa. Supply chain policyb. Management systemsc. Information gatheringd. Supplier engagement
e. Grievance mechanism

Identify
and assessrisks
Red-ﬂagged
operations
Risk review andmapping
Risk assessment

Red ﬂags
identiﬁed

No red ﬂags
identiﬁed

Managerisks
Findings report
Engagement
and control
Risk management
implementation andfollow-up’

Monitorand evaluate
for continuous
improvement

Reportannually

Verify due
diligence

Annualreports

Third-party
audit

Figure 7.1. The key elements of OECD’s five-step framework for due diligence2

OECD, OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas, Third Edition (2016)www.oecd.org/daf/inv/mne/OECD-Due-Diligence-Guidance-Minerals-Edition3.pdf

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CAHRAs and Annex II risks
Annex II of the OECD Guidance identifies five major risks associated with sourcing from CAHRAs. Your supply chain policy
should address each one:
1. Serious abuses associated with the extraction, transport or trade of minerals (aligned with COP 6 Human rights, and for
diamonds with Annex 2 of the World Diamond Council (WDC) System of Warranties (SoW) Guidelines).3
This includes but is not limited to:•any forms of torture, cruel, inhuman and degrading treatment;•

any forms of forced or compulsory labour;•

the worst forms of child labour;•other gross human rights violations and abuses such as widespread sexual violence; and•war crimes or other serious violations of international humanitarian law, crimes against humanity or genocide.

2. Direct or indirect support to non-state armed groups (aligned with COP 29 Kimberley Process Certification Schemeand World Diamond Council System of Warranties).
3. Direct or indirect support to public or private security forces who illegally control, tax or extort money from mine sites,
transportation routes and upstream actors.
4. Bribery and fraudulent misrepresentation of the origin of minerals (for diamonds, aligned with Annex 2 of the WDC
SoW Guidelines).
5. Money laundering and non-payment of taxes and royalties due to governments (aligned with COP 12 Know YourCounterparty: money laundering and finance of terrorism, and for diamonds with Annex 2 of the WDC SoW
Guidelines).
If you are in the diamond supply chain, your policy should also confirm that your diamonds are only ever sourced incompliance with the Kimberley Process Certification Scheme (KPCS), WDC SoW and national law (see COP 29 Kimberley
Process Certification Scheme and World Diamond Council System of Warranties).
3

C Key regulations, standards and initiatives
International initiatives
The OECD Guidance is a detailed framework for due diligence for a company’s responsible supply chain management of minerals.
The third edition of the OECD Guidance was published in April 2016 and contains the OECD Council Recommendation, the textof the OECD Guidance, the 3Ts Supplement (for tin, tungsten and tantalum) and the Gold Supplement.
A number of initiatives have been developed to embed the OECD Guidance into practice for the gold supply chain, for example
the London Bullion Market Association (LBMA) Responsible Sourcing Guidance and Responsible Minerals Initiative (RMI)
Responsible Minerals Assurance Process (RMAP) Gold Refiner Standard. These are listed under Section E. The Code of RiskMitigation for ASM Engaging in Formal Trade (CRAFT) has been developed for responsible sourcing from artisanal and smallscale mining (ASM) in alignment with the OECD Guidance. Other initiatives on ASM and due diligence are listed under COP
8 Sourcing directly from artisanal and small-scale mining, including the Coloured Gemstones Working Group (CGWG) due
diligence tools and the Maendeleo Diamond Standards.
Also see the guidance chapter for COP 6 Human rights for information on the UN Guiding Principles on Business and Human
Rights.

National law
Some countries have laws to protect against risks related to minerals from CAHRAs. For example, Section 1502 of the US
Dodd-Frank Act requires all US publicly listed companies to check their supply chains for tin, tantalum, tungsten and gold
(3TG), and, if they have reason to believe these originated in the Democratic Republic of the Congo or an adjoining country, toproduce a ‘conflict minerals report’ that describes their due diligence efforts and shows these conform to the OECD Guidanceor equivalent framework.

3

52

World Diamond Council, System of Warranties Guidelines (2018)www.worlddiamondcouncil.org/download/WDC%20SoW%20Guidanlines_draft_for%20public%20consultation.pdf

RJC Code of Practices GuidanceSimilarly, Regulation (EU) 2017/8214 (EU Conflict Minerals Regulation) sets out due diligence requirements for EU importersof tin, tantalum, tungsten and gold, which will apply from 1 January 2021. The regulation is aimed at the supply practices ofEuropean Union importers of mineral ores and metals sourcing from CAHRAs. In 2016, as part of the implementation of theOECD Guidance, the OECD launched a project to develop and pilot test an assessment methodology for evaluating the extent
to which industry schemes align with the detailed recommendations of the OECD Guidance (the Alignment Assessment ofIndustry Programmes with the OECD Minerals Guidance).5 The methodology developed during this pilot study (in which
the RJC participated) will be used by the EU Commission to recognise relevant industry schemes that meet the regulation’s
objectives. The EU Commission has also published details on the formal process and criteria that will be used for recognisingindustry schemes.6
National frameworks for applying the OECD Guidance are also being developed:• The Chinese Due Diligence Guidelines for Responsible Mineral Supply Chains(http://mneguidelines.oecd.org/chinese-due-diligence-guidelines-for-responsible-mineral-supply-chains.htm)
have been designed to align Chinese company due diligence with international standards (including the UN Guiding
Principles on Business and Human Rights and the OECD Guidance).
• In November 2017, the Indian Government announced plans to develop similarly aligned Indian Guidelines for
Responsible Sourcing of Gold.

D Implementation guidance
COP 7.1 and 7.2: Exercise due diligence
7.1 Members in the gold, silver, PGM, diamonds and coloured gemstones supply chain shall exercise due diligenceover their supply chains in accordance with the OECD Due Diligence Guidance for Responsible Supply Chainsof Minerals from Conflict-Affected and High-Risk Areas (the ‘OECD Guidance’) or other auditable due diligenceframeworks recognised by the RJC to be aligned with the OECD Guidance (‘RJC-recognised due diligenceframeworks’), in ways appropriate to their size and circumstances. In addition:a. Members in the gold value chain shall implement the OECD Guidance Supplement on Gold as applicable to theiroperations and supply chains.
b. Members in the diamond supply chain shall implement the OECD Guidance while complying with COP 29 (Kimberley
Process Certification Scheme and World Diamond Council System of Warranties).
7.2 Members shall adopt and communicate publicly and to their suppliers a supply chain policy with respect tosourcing from conflict-affected and high-risk areas. The policy shall be consistent at a minimum with Annex II of theOECD Guidance or with other RJC-recognised due diligence frameworks.

Note on RJC-recognised due diligence frameworks
The RJC will, where applicable, recognise national due diligence frameworks through review using the OECD Alignment
Assessment methodology. Frameworks that are found to fully align with the OECD Guidance in this way will be listed on
the RJC website and can then be used by members to comply with this provision.
This provision is mandatory for all members in the gold, silver, PGM, diamonds and coloured gemstones supply chain. This
implementation guidance does not replace the OECD Guidance, but offers an approach to help RJC members implement it. It is
divided into two sections, which can be read independently:• Diamond and coloured gemstones for RJC members in the diamond and coloured gemstones supply chain including miners,
traders, cutters and polishers, manufacturers and jewellers.
• Gold, silver and PGM for RJC members in the gold, silver and PGM supply chain including miners, refiners, traders,manufacturers and jewellers.

4

European Union, Regulation (EU) 2017/821
https://publications.europa.eu/en/publication-detail/-/publication/8b0e378b-3c59-11e7-a08e-01aa75ed71a1/language-en

5OECD, Methodology for the Alignment Assessment of Industry Programmes with the OECD Minerals Guidance (2018)
http://mneguidelines.oecd.org/industry-initiatives-alignment-assessment.htm

6European Commission, Commission Delegated Regulation (EU) …/...of 11.1.2019 (2019)https://ec.europa.eu/transparency/regdoc/rep/3/2019/EN/C-2019-9-F1-EN-MAIN-PART-1.PDF

RJC Code of Practices Guidance53

D1 Diamonds and coloured gemstones implementation
guidance
This section is for companies in the diamonds and the coloured gemstones supply chain as illustrated in Figure 7.2.
The supply chain is divided into:• Upstream: exploration, mining companies, ASM and rough exporters (first export from country of mining origin).
• Midstream: rough and polished traders, cutters and polishers, who can be either Tier 1 (sourcing rough stones directly from
exploration, mining and/or ASM through long-term or one-off contracts) or Tier 2 (sourcing from ‘upstream rough exporters’(first export from country of mining origin), Tier 1 or other Tier 2).
• Downstream: traders (only polished), jewellery manufacturing, wholesaler or retail.

Upstream companies
Exploration
Mining companies

Production

Rough Export

ASM
Rough exporters (ﬁrst export)

Midstream companies
Traders (rough and polished), cutting & Polishing:
Tier 1 (sourcing directly from exploration, mining
companies and/or ASM)

Rough
Trade

Cutting &Polishing

Polished
Trade» Long-term contracts» One-off contracts
Tier 2» Source from rough exporter, tier 1, or from other tier 2

Downstream companies
Polished only traders
Jewellery manufacturing

Jewellery
Manufacturing

Jewellery
RetailWholesaler
Jewellery retail

Figure 7.2. The diamond and coloured gemstones supply chain
The expectations of companies differ across the supply chain and this is highlighted throughout the document. Midstream
companies will often be both Tier 1 and Tier 2 at the same time and will have to implement the requirements for bothaccordingly. A summary of the steps for each type of company is included at the end of Section D in Table 7.6 Application of the
five-step framework to the diamond and coloured gemstones supply chain.
Note that a stand-alone RJC Due Diligence Toolkit is being developed for companies in the diamond and coloured gemstones
supply chain to offer practical guidance on how to apply due diligence. The toolkit will be piloted between 2019 and 2021, after
which the COP, guidance and toolkit will be reviewed to reflect findings. During this pilot period, audits will be phased in formembers in the diamond and coloured gemstones supply chain as outlined in the box ‘Diamonds and coloured gemstones: aphased approach to assessing COP conformance’ under Step 4 of the implementation guidance in Section D below.

54

RJC Code of Practices GuidanceFollowing the OECD five-step framework
This guidance presents information on applying the OECD framework in the order that the steps are described in theOECD Guidance, but companies should carry out the various parts of Steps 1 and 2 in the order that works best forthem. For example, some may find it more useful to start with initial information gathering (Step 1C) and preliminary
identification of red flags (Step 2) before finalising the structure of their internal management systems (Step 1B), supplierengagement (Step 1D) and grievance mechanism (Step 1E).

OECD Step 1 Establish strong company management systems
1A. Supply chain policy• Establish a supply chain policy clearly stating your position on responsible sourcing from CAHRAs. Your policy should cover
all the risks that are relevant to your business and, at a minimum, each of the major risks associated with CAHRAs, and, in thecase of diamonds, KPCS and WDC SoW requirements too. See Annex D1 for a template policy.
• Your policy and associated management system can be stand-alone or part of a broader policy. If it is separate, make sure it
is aligned with and linked to your policies and procedures on human rights (COP 6 Human rights), Know Your Counterparty(KYC) (COP 12 Know Your Counterparty: money laundering and finance of terrorism) and other relevant policies.
• Try to involve all staff affected by the policy in its development, to help ensure it can be practically implemented. For
example, consult staff responsible for diamonds and coloured gemstones procurement, production and communications, etc.
It may also be worth consulting key external stakeholders.
• Use the policy to clarify your position and expectations to suppliers and other stakeholders by:•making it publicly available (for example, on your website, or as a paper or electronic copy available on request);•

sending it directly to immediate suppliers via contracts or other notifications; and•subject to available resources, training suppliers and building their capacity to better understand and adhere to yourrequirements.

Note on due diligence for diamonds and the KPCS and WDC SoW
The KPCS and WDC SoW are a fundamental part of due diligence in the diamond supply chain. The KPCS provides
evidence that risks of rebel financing are addressed in the trade of rough diamonds. The 2018 revised WDC SoW
Guidelines encourages companies in the diamond supply chain to respect human rights as well as implement anticorruption and anti-money laundering measures. Compliance with the RJC COP will help you to demonstrate adherence
to the voluntary parts of Annex 2 of the WDC SoW Guidelines.
It’s important to note that the COP requires RJC members involved in the diamond supply chain to comply with the KPCS
minimum requirements and recommendations in line with applicable national legislation, and to adopt the WDC SoW in allcases (see COP 29 Kimberley Process Certification Scheme and World Diamond Council System of Warranties).

RJC Code of Practices Guidance

55

1B. Structure management systems that support due diligence• A due diligence management system is a framework for co-ordinating activities, documents and outputs across multiple,
interrelated functions. It may consist of procedures, checklists, guidance documents, trainings and electronic databases,or only some of these. Remember to align your due diligence systems with those you already have in place related to other
COP requirements, particularly COP 6 Human rights, COP 8 Sourcing directly from artisanal and small-scale mining, COP
12 Know Your Counterparty: money laundering and finance of terrorism and COP 29 Kimberley Process Certification
Scheme and World Diamond Council System of Warranties.
• To be effective, your due diligence management system should allow you to identify suppliers, and to assess any associatedrisks relevant to your supply chain policy. In practice, this means:•

integrating the system across the different units in your company that implement and support the supply chain policy; and•allocating enough resources to run and monitor the system effectively.

• Assign a senior staff member to lead your due diligence management system. This person should be suitably qualified andshould:•lead the supply chain policy’s development and implementation;•

co-ordinate and communicate the policy’s implementation across your organisation;•

work to ensure all relevant suppliers respect the policy, and review business relationships with suppliers based on risk levels;•

carry out internal and (if relevant) external training;•

respond to identified supply chain risks;•publicly report on due diligence every year (see Step 5); and•review and propose improvements to the due diligence system.

• Depending on your available resources, you may decide to delegate some of the above tasks to different people, but ultimate
responsibility should remain with one senior member of staff.
• Record any decisions made about the due diligence system through, for example, meeting minutes or internal memos: these
may also be used as evidence during audits.
• To ensure your due diligence remains effective over time, review your management system regularly and look foropportunities to improve it. Be sure to do this at least once a year.

1C. Establishing a system for transparency and controls over the supply chain• Before you can identify and assess risk, you must understand your supply chain and identify your suppliers. That means
collecting different types of information and documents, depending on your position in the supply chain (see Tables 7.1a,
7.1b and 7.2).
• Upstream and Tier 1 midstream companies are required to share information with buyers. Note that there is a difference in
the information you need to collect as part of your internal system and the information you should share with your buyers
for their due diligence.
• Whatever your company type, you are expected to keep, as a minimum, internal inventory and transaction documents to beable to retrospectively identify material inputs and outputs (diamonds or coloured stones). That means collecting:•information on the product classification, type and weight of material inputs; and•supplier details, including KYC information (see COP 12 Know Your Counterparty: money laundering and finance ofterrorism) and information on their due diligence systems (policy and management systems and due diligence findings).

• When you gather information on inputs, if there are inconsistencies between your inspection of shipments and theinformation provided by the supplier, you should temporarily suspend the transaction until the inconsistency is resolved.

56

RJC Code of Practices GuidanceTable 7.1a. The information that upstream and Tier 1 midstream companies are expected to gather and share
Upstream companies: exploration, mining, rough exporter (first export from country of mining origin) andTier 1 midstream companies: sourcing directly from exploration, mining companies, and/or ASM.
• Gather information for your own operations for each of your suppliers.
• You can gather or share information on a, b and c once and then just update it when there are changes; review the
information at least once a year. You may need to gather or share information on d and e for every shipment, parcel orconsignment if these vary.
• This information may not always be available (for example if you are sourcing from ASM); use your best endeavours togather what information is available.

All supply
chains

Red-flagsupplychains only

Information to gather for your internal systems(and/or from suppliers if applicable)

Information to share with buyers

a. The origin of stones, with the greatest possible specificity. This
information can be provided in aggregated form (for example, alist of all mines, companies, regions or geographical locations thatmaterial come from).

Same as information to gather, with due
regard for commercial confidentiality.

b. All locations where stones are consolidated before export.

Same as information to gather, with due
regard for commercial confidentiality.

c. The method of extraction (ASM or large-scale mining).

Same as information to gather, with due
regard for commercial confidentiality.

d. The weight and, if relevant, other characteristics of the stones(for example, product classification, type and physical description).

Same as information to gather, with due
regard for commercial confidentiality.

e. The transportation routes of stones (information shared with
due regard to security).

Same as information to gather, with due
regard for commercial confidentiality.

f. The identity of all suppliers and relevant service providers(for example, transport companies) from the origin through toexport/import—in particular, their ownership (including beneficial
ownership); corporate structure (including names of corporate
officers and directors); and business, government, political or
military affiliations. These checks are already covered under COP
12 Know Your Counterparty: money laundering and financeof terrorism for immediate suppliers of diamonds and coloured
gemstones, but for red-flag supply chains should be extended to
all upstream suppliers and relevant service providers.
g. All taxes, fees or royalties paid to government related to thematerial’s extraction, trade, transport and export.

Assurance that you are gathering
this information; and evidenceof your participation in RJC
certification (if applicable).

h. All payments or compensation made to government agencies
and officials related to the material’s extraction, trade, transportand export (including facilitation payments).
i. All payments made to public or private security forces orother armed groups at all points in the supply chain fromextraction onwards (unless prohibited under applicable law).

RJC Code of Practices Guidance57

Table 7.1b. The information that Tier 2 midstream and downstream companies are expected to gather
Tier 2 midstream companies: sourcing from upstream rough exporters (first export from country of mining origin),Tier 1 or other Tier 2 midstream companies; andDownstream companies: traders, cutters and polishers, polished stone traders, jewellery manufacturers, wholesalers andretail.
• Gather information for your own operations and for each of your suppliers, and /or check with your government diamond
office if they can give you this information.
• You can gather information on a, b and c once and then just update it when there are changes; review the information atleast once a year.
• This information may not always be available and in all cases, you should use your best endeavours to obtain it.
a. The identity of immediate suppliers.

All supply
chainsb. The sources of stones. This information can be provided in aggregated form (for example, a list of all
countries, areas and/or companies where material comes from). Try to identify the rough exporter (firstexport from country of mining origin) or Tier 1 midstream company if possible, and if not, then try to identify
the furthest upstream point in the known supply chain.
c. Where available, evidence that immediate suppliers have carried out due diligence based on an approachthat is aligned with the OECD Guidance.
d. Where available, evidence that your immediate suppliers have done the same with their immediate suppliers,
and encouraged the same further up the supply chain (for example, through inclusion in contractual
agreements).

Red-flagsuppliere. Evidence of audits carried out in conformance with the OECD Guidance, covering the sourcing practices of
red-flag suppliers.

• See Annex D1 for template information forms that you can use to provide or request information.
Table 7.2. Information needed to determine the source of different types of material7
Material typeDefinition

Minedmaterial

Rough and polisheddiamonds and coloured
gemstones that comefrom mines.

Recycled
material

Confirm that the material received is recycled material and obtain sufficient
Polished diamonds andinformation to reasonably confirm that the stones are not falsely represented ascoloured gemstones
that had a prior use by a recycled to hide their origin.
consumer and have reentered the supply chain
to be recut and polishedand/or resold.

Existing stock ofGrandfathered diamonds/coloured
material
gemstones purchased
before 23 April 2019.7

Information needed in determining source
Seek information on the origin and/or source as outlined in Table 7.1 a andTable 7.1 b according to your position in the supply chain.

Origin determination is not required unless there is reasonable evidence to suspect
the authenticity of the grandfathered status of the material (see OECD Step 2).
Appropriate invoices, purchase orders, and inventory lists to verify the purchasedate must be available and kept on record for all grandfathered stones.

The ‘comply or explain’ approach
In practice, the information you want simply may not be available. This is acceptable under a due diligence approach as
long as you can explain the steps you’ve taken to seek information and your plans to improve your data over time.
• In practice you can gather information in several ways:

7

58

•

Use checklists, forms and invoices that clearly state what information you need.

•

Collect information directly in meetings (smaller companies may find this approach easier).

•

Depending on resources available, consider using electronic data management software to help streamline your supply
chain mapping and information gathering.

If you purchased a stone before the effective date, then you do not need to carry out due diligence on it.

RJC Code of Practices Guidance• In all cases, be sensitive to commercial confidentiality concerns. See the OECD Due Diligence Guidance for Responsible
Business Conduct for tips on how to do this, which include, for example, limiting access to a supplier’s sensitive information
or asking for aggregate information rather than specific business relationships.8• Regardless of where you are in the supply chain, and what material you handle, make sure you keep all information for atleast five years, and make it available to buyers further downstream and auditors.
• If information is not forthcoming, adopt a road map with your suppliers to obtain it over an agreed time frame and thendocument discussions and agreements with suppliers as evidence of your due diligence activities. Your suppliers should
demonstrate some level of improvement. If they make no effort at all to provide you with information, then at some point a
decision to disengage from that supplier may be appropriate.

Q&A: Information gathering
How can I help my suppliers understand my expectations?
Adopt some or all of the following approaches:• Clearly reference your supply chain policy in all commercial contracts and written agreements, invoices, consignment
notes or other relevant documents.
• Contact all your suppliers to discuss the policy and requirements and let them ask questions. This will also give you an
opportunity to assess any training or capacity-building needs. Your suppliers may already have relevant systems andpolicies in place that meet some or all of your needs.
• If possible, help your suppliers develop their own risk management strategy, consistent with your supply chain policy.

What can I do if my suppliers are unable or unwilling to provide the information I need?
There may be several reasons why a supplier cannot or will not give you the information you need. Some of these will beeasy to resolve; others may require more complex solutions. You should explore your options before deciding whether tosuspend or terminate the relationship should your best efforts to engage the supplier fail. Example issues and potential
solutions include:• The supplier does not understand the request: talk to the supplier again and tell them what information you need andwhy. Offer training where applicable.
• The supplier can’t get the information from its own upstream suppliers: offer to help by setting up joint meetings with
upstream suppliers or by supporting them to organise their management system to better map the supply chain.
• The supplier does not want to provide the information because it is confidential: discuss the possibility of a nondisclosure agreement to manage information sharing and reassure the supplier about the precise use of theirinformation.
If you are starting with very little or no information on upstream sources, you can still demonstrate compliance with thisprovision by explaining and documenting the steps you’ve taken to seek information and your plans to improve your dataover time.

1D. Strong engagement with suppliers• Try to establish long-term relationships with suppliers (rather than short-term or one-off contracts).
• Communicate to suppliers your expectations that they will undertake supply chain due diligence and risk management inways that are consistent with your supply chain policy. If any problems arise, work with them to try and resolve the issue
before you consider suspending or terminating the relationship. This may include training or building capacity to help
suppliers provide the assurances you need.
• In your commercial contracts with suppliers, include provisions for sharing due diligence information.
• Where practical, encourage suppliers to include provisions in their own contracts with their suppliers.

8OECD, OECD Due Diligence Guidance for Responsible Business Conduct (2018) p. 87
http://mneguidelines.oecd.org/OECD-Due-Diligence-Guidance-for-Responsible-Business-Conduct.pdf

RJC Code of Practices Guidance59• 1E. An effective grievance mechanism• An effective supply chain grievance mechanism:•

offers all parties (affected stakeholders or whistle-blowers) a way to raise concerns about the businesses, organisations,individuals or activities in your supply chain; and•serves as a tool for identifying and reacting to issues in your supply chain that may otherwise go unnoticed.

• Your grievance mechanism can be the same one as (or aligned with) that required under COP 6 Human rights.
• When developing and implementing a grievance mechanism, make sure you:•

Make the mechanism easily accessible to all who may wish to use it: this means allowing for grievances to be submitted in
multiple ways—by email, letter, telephone and in person.

•

Protect whistle-blowers by allowing them to remain anonymous.

•

Keep an accurate and updated log of all grievances and follow-up actions.

•

Develop a transparent process and procedure for responding to grievances, and respond to all grievances in a timely andefficient manner.

•

Follow up each grievance with a verifiable corrective action that can be monitored and assessed. If a grievance is dismissed
without any follow-up, accurately log and record full justifications and details of any investigation.

OECD Step 2 Identify and assess risks in the supply chain
Red flags• Step 2 begins with using the information you have gathered in Step 1 on your supply chain to identify ‘red flags’, as definedby the OECD Guidance (see Table 7.3). These red flags are an indicator of a potential risk that requires further investigation
through a subsequent risk assessment.
Table 7.3. List of red flags, as defined by OECD
Type of red flag

Description of red flag
The material originates from or has been transported through a CAHRA.

Red-flag locations(locations of origin
and transport)

The material is claimed to originate from a country with limited known supplies (that is, the declared
volumes of diamonds or coloured gemstones from that country are out of keeping with its known
reserves or expected production levels).
The material is claimed to originate from a country through which material from CAHRAs is known orreasonably suspected to pass through.
The material is claimed to be recycled in a country where diamonds or coloured gemstones fromCAHRAs are known or reasonably suspected to pass through.

Red-flagsupplier

Red-flagcircumstances

Suppliers or other known upstream companies that operate in one of the above-mentioned red-flag
locations, or have shareholder or other commercial interests in suppliers from these red-flag locations.
Suppliers or other known upstream companies are known to have sourced material from a red-flag
location in the last 12 months.
Anomalies or unusual circumstances are identified through the information collected, which give rise toa reasonable suspicion that the extraction, transport or trade of the material may contribute to conflictor be associated with serious abuses.

• The process for identifying location or supplier red flags varies depending on where you are in the supply chain:60•

If you are an upstream company or a Tier 1 midstream company, you need to look at all countries, regions and areas thatyou operate in, source from, plan to source from or transport material through, and establish whether or not they are
CAHRAs (see Figure 7.3 and box ‘Resources for identifying a CAHRA).

•

If you are a Tier 2 midstream or downstream company, you need to ask your immediate suppliers for their due diligence
information. They, in turn, should be seeking this information from their suppliers and providing you with the names
and due diligence information, in aggregate, of the rough exporters (first export from country of mining origin) or Tier 1
midstream companies if possible, and if not, then the furthest upstream companies in the known supply chain (the source).
You should review this to see if your suppliers have, or reasonably should have, recorded any red flags.

RJC Code of Practices Guidance• You should review this at a frequency that is aligned with your information gathering in Step 1C—that is, collected once foreach supplier, updated when there are changes and, at a minimum, reviewed every year (see Tables7.1a and 7b).
• Note that the presence of ASM does not automatically imply a red flag; see Figure 7.3 for the characteristics of CAHRAs forwhich you should be looking.
• If you have been able to reasonably determine that these red flags are not present in your supply chain, then the sources canbe considered low risk, requiring minimal further action other than ensuring that:•your company management system (described in Step 1) continues to work effectively; and that•you report publicly on your due diligence practices as per Step 5.

Resources for identifying a CAHRA
You can review a range of documents and resources from credible sources to check for CAHRAs. This includes:• research reports from governments, international organisations, non-governmental organisations (NGOs) and media;• maps, UN reports and UN Security Council sanction lists; and• relevant industry literature on the material’s extraction, and its impacts on conflict and human rights.
The EU Commission has published a list of publicly accessible resources that can be used to identify CAHRAs.9 The OECDis developing the ‘Portal for Supply Chain Risk Information’, which is designed to help companies understand and prioritiserisks in their supply chains.10
For COP certification, you must be able to show that you have adequately reviewed and considered credible sourcesof information; auditors will only flag inconsistencies in your approach that are clearly linked to a weak due diligence
management system as a non-conformance.
9, 10

Governance

Areas with weak or nogovernance or security, including:political instability or repression
institutional weakness
insecurity
collapse of civil infrastructure
widespread violenceConﬂict
Human rights

Areas affected by widespread
human rights abuses and violationsof law, including:torture or cruel and degrading
treatment

Areas in a state of conﬂict, including:forced and child labour

international conﬂictwidespread sexual violence

wars of liberation or insurgencies

war crimes

civil wars

crimes against humanity

any other armed aggression

genocideFigure 7.3. CAHRA characteristics

9

Commission Recommendation (EU) 2018/1149 (2018) https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:32018H1149

10

OECD, Portal for Supply Chain Risk Information www.oecd.org/daf/inv/mne/oecd-portal-for-supply-chain-risk-information.htm

RJC Code of Practices Guidance61

Risk assessment• The presence of a red flag does not mean that adverse impacts have occurred in your supply chains. Your risk assessment ismeant to look for the presence of adverse impacts related to CAHRAs, as highlighted in Annex II of the OECD Guidance (seebox ‘What are adverse impacts related to CAHRAs?’).

What are adverse impacts related to CAHRAs?
Adverse impacts specifically related to mineral supply chains are:
• Serious abuses associated with the extraction, transport or trade of minerals.
• Any forms of torture, cruel, inhuman and degrading treatment.
• Any forms of forced or compulsory labour.
• The worst forms of child labour.
• Other gross human rights violations and abuses such as widespread sexual violence.
• War crimes or other serious violations of international humanitarian law, crimes against humanity or genocide.
• Direct or indirect support to non-state armed groups (covered by the KPCS for diamonds).
• Direct or indirect support to public or private security forces.
• Bribery and fraudulent misrepresentation of the origin of minerals.
• Money laundering and non-payment of taxes and royalties due to governments.
Source:• OECD Guidance: Annex II Model Supply Chain Policy• Where red flags are identified for mined material, you need to assess the risk that adverse impacts are occurring as follows:•

If you are an upstream or Tier 1 midstream company, map the factual circumstances of all red-flag territories for
current and future operations. See box ‘Mapping factual circumstances of red-flag supply chains (for upstream and Tier 1
midstream companies)’.

•If you are a Tier 2 midstream or downstream company, further evaluate the due diligence and risk mitigation practicesof rough exporters (first export from country of mining origin) or Tier 1 midstream companies if possible, and if not, thenthe due diligence and risk mitigation practices of suppliers furthest upstream in the known supply chain. Consider any
information that is available from upstream companies in the red-flag supply chain. If the due diligence practices of any
upstream companies in that supply chain have been independently audited against a relevant standard, try to get theresults and review them. Alternatively, Tier 2 midstream or downstream companies may identify through industry cooperation and schemes the rough exporters or Tier 1 midstream companies that meet the requirements of this guidance inorder to source there from.

Mapping factual circumstances of red-flag supply chains (for upstream and Tier 1
midstream companies)
Map the factual circumstances of red-flag territories for current and future operations by gathering available information,for example through:• An in-depth review of the context of all red-flag locations:•

Generate or review reports, maps and relevant literature on extraction, transport and trade in the red-flag location.

•

Engage with stakeholders by consulting, for example, with local and central governments, local civil society
organisations, community networks, etc.

•

If you are sourcing from other upstream suppliers, review their working policies and systems (for example, throughdesktop research).

• On-the-ground assessments to generate and maintain information on how rough diamonds and coloured gemstones are
extracted, traded, handled and exported. Whether you are a mining company only dealing with your own production ora mining company, rough trader, exporter or importer sourcing from other miners, carry out your assessment ensuring
that:•Your assessors are independent from the activity being assessed and free from conflicts of interest.

•

The appropriate level of competence and expertise is deployed, whether this is with internal or external experts.

In situations where many companies are operating in a similar area (for example, sourcing from an ASM area), consider
establishing a joint assessment team with other companies or through an industry or multi-stakeholder mechanism or
initiative.

62

RJC Code of Practices Guidance• If you identify a red flag for a supplier of recycled diamonds or coloured gemstones, review things like the value oftransaction, place of transaction, type of material, unusual circumstances and type of supplier. Consider carrying out on-site
visits to the supplier to confirm the legitimacy of the recycled source.
• In all cases, keep a record of the information and evidence you used to determine high- and low-risk sources in your red-flag
supply chain.
• Do not automatically disengage a source if it is deemed high risk: engage with your suppliers first and adopt a risk mitigation
strategy (see Step 3) where possible and appropriate before considering suspending or terminating your business
relationship.
• Note that under the OECD Guidance, you are responsible for identifying the red flags and carrying out a risk assessment foryour suppliers whether or not they belong to any external supply chain initiatives and programmes. That means you should
not rely only on external parties, including the RJC, to undertake any aspect of due diligence on your behalf.

OECD Step 3 Design and implement a strategy to respond to
identified risks• If you identified a high risk of an adverse impact occurring in Step 2, you will need to design and implement a risk
management strategy.
• Start by sharing the result of the risk assessment carried out in Step 2 with senior management. Include:•

an outline of the information gathered from the risk assessment; and•details of the risks and whether adverse impacts have been identified in the supply chain.

• Outline your response to risks in a risk management plan. The response you decide upon depends on the type of risk
identified (see Table 7.4).
Table 7.4. Appropriate response if you identify a reasonable risks of adverse impacts (based on the OECD Guidance Annex II
Model Supply Chain Policy)
Identified risk of adverse impact

Appropriate response

Serious abuses associated with the extraction, trade andtransport of minerals

Immediately suspend or disengage from suppliers.
Mitigate where possible.

Direct or indirect support to non-state armed groups

Immediately suspend or disengage from suppliers.
Mitigate where possible.

Direct or indirect support to public or private security
forces who illegally control mine sites, transport routes
and upstream actors (including illegal taxation)

Continue, or temporarily suspend, trade with suppliers,
but implement measurable mitigative actions. Suspend or
disengage if mitigation measures are ineffective.

Bribery and fraudulent misrepresentation of the origin ofmineralsContinue, or temporarily suspend, trade with suppliers,
but implement measurable mitigative actions. Suspend or
disengage if mitigation measures are ineffective.

• Factors such as severity and probability of an adverse impact are important in determining the scale and complexity of thedue diligence response.
• In all cases, make sure that your risk management plan is appropriate to your size and realistic ability to implement it. In
devising mitigation measures:•consult the recommendations included in Annex II and III of the OECD Guidance;•reach out to companies and individuals in your supply chains that can most effectively and most directly mitigate theidentified risks; and•where possible, consult affected stakeholder groups before agreeing a risk mitigation plan.

• For upstream and Tier 1 companies your mitigation management plan for red flags should:•

Establish a traceability system that collects and maintains information that is specific to red-flag supply . This meansthat parcels can be tracked from extraction through to export and each actor involved in the trade and transport can be
identified.

•Enhance physical security practices over the supply chain.

•

Consider monitoring and tracking performance of risk mitigation in co-operation or consultation with local and central
authorities and other relevant stakeholders. Consider establishing or supporting worker or community-based networks tomonitor risk mitigation.

RJC Code of Practices Guidance63• In some cases, material may have been purchased with adequate due diligence and in good faith before becoming aware ofa reasonable risk of serious abuses or support to non-state armed groups (and therefore before suspending or disengaging
trade as outlined in Table 7.4). In these cases, you should temporarily physically segregate supplies you have alreadypurchased until the risk is resolved. If the risk is not resolved, seek legal advice on selling the material and be transparent
with potential clients about your good faith due diligence efforts and mitigation actions.

Note on traceability
Traceability is only required when red flags are identified (see Table 7.3) and only for upstream and Tier 1 midstream
companies. Traceability can be per mixed parcel or batch.
• If you are a Tier 2 midstream or downstream company, base your risk management plan on enhanced engagement with
suppliers and strengthening systems of information collection. This includes ensuring that the information you receive fromsuppliers on the source with the identified risk is regularly updated.
• Define a timeframe for achieving significant measurable improvement (maximum six months) and continue monitoring the
supply chain to assess your plan’s effectiveness.
• If, after reasonable efforts at mitigation, you still fail to achieve your desired outcomes, you should disengage from the
supplier.
• Consider your communication approach with your buyers, sharing information in a timely way about red flags you’ve
identified, your risk assessment and your mitigation strategy, doing so at least annually in line with Step 5.

OECD Step 4 Carry out independent third-party audit ofdue diligence practices• Regardless of your position within the supply chain, your due diligence practices will be audited as part of the normal COP
certification process. RJC auditors will look to verify that you have made reasonable and good faith efforts to implement therequirements of COP 7 based on a continual improvement approach. In practice this means that compliance can be achieved
even if you are starting with very little information on sources, as long as you can show you have effective management
system processes and plans for improvement and can demonstrate that improvement over time.

Diamonds and coloured gemstones: a phased approach to assessing COP conformance
All companies must implement this mandatory requirement of the COP. The RJC will be piloting the Due Diligence Toolkit
for three years for companies in the diamond and/or coloured gemstones value chain and during this period conformanceassessment with the COP shall be phased in. Members scheduled for COP certification or recertification shall:• Between 23 April 2019 and 22 April 2020: have the option to use the 2013 or new version of the COP for auditing.11 Ifchoosing to certify against the new version of the COP, members shall be assessed for conformance with the following
elements of Step 1 of the OECD Guidance:•

having a supply chain policy; and•assigning responsibility to someone who will lead the development of relevant management systems.

• Between 23 April 2020 and 22 April 2021: be assessed for conformance with the following elements of Step 1, Step 2
and Step 5 of the OECD Guidance:•

having a supply chain policy and responsible person (as above);•preliminary supply chain mapping and scoping efforts (for example, identifying and starting to engage with key
suppliers); and•publicly reporting progress on due diligence efforts covering all elements covered above.

• Between 23 April 2021 and 22 April 2022: the findings of the pilot projects will be used to evaluate the COP, guidance,
audit approach and any related RJC tools as necessary. At the conclusion of the review and release of updated RJC
documents, members undergoing certification and recertification audits shall be assessed for conformance with Steps
1–5 of the OECD Guidance. The findings of the pilot projects are essential and will support the RJC in evaluating thisguidance and supporting tools as necessary.
11

11

64

This is the RJC’s normal approach for transitioning to new or updated standards.

RJC Code of Practices GuidanceOECD Step 5 Report annually on supply chain due diligence• Regular public reports promote transparency and generate public confidence. Make sure you report publicly on your due
diligence systems and practices at least once a year, for example through your company website or through applicable
company reports and publications aligned with your other reporting (COP 3 Reporting) and any human rights due diligencereports (COP 6 Human rights).
• The information you need to include varies according to your business type (see Table 7.5).
• Match the level of detail in your report with the level of risk in your supply chain. For example, if you did not identify any red
flags, you don’t need to include information related to OECD Step 3.
• Be practical in how you format your report, taking into account the scale and impacts of your business. For example, if you
are a small business, you do not need a printed publication—a simple memorandum that is available upon request will do.

Table 7.5. Annual reporting requirements under OECD Step 5 (and RJC COP certification)
Category

Reporting information to include:

Upstream companies and Tier 1 midstream companies
Supply chain policy.
1. Management systems

Management structure and responsibilities for due diligence programme.
Internal control systems, processes for information collection and record-keeping.
Systems for identifying red-flag locations.

2. Risk assessment

Description of any red flags in supply chains and steps taken to map them.
Methods, practices and information yielded by on-the-ground assessment teams.
A summary of high risks identified (within your existing supply chain only).
Steps taken to strengthen internal control systems to collect reliable information from red-flag
supply chains.
Steps taken to manage risks, including involvement of affected stakeholders.

3. Response

Efforts made to monitor and track performance for risk mitigation.
Number of instances where you decided to disengage from suppliers.
All instances of risk mitigation and results of follow up after six months.

Tier 2 midstream and downstream companies
Supply chain policy.
1. Management systems

Management structure and responsibilities for due diligence programme.
Record-keeping systems and processes for information collection.

2. Risk assessment

Steps taken to engage with suppliers and seek supply chain information.
Actual or potential risks identified.
Steps taken to manage risks, including involvement of affected stakeholders.

3. Response

Efforts made to monitor and track performance for risk mitigation.
All instances of risk mitigation and results of follow-up after six months.

RJC Code of Practices Guidance65OECD step

Check list
Upstream and Tier 1 midstream

Step 1:
Management
systemTier 2 midstream and downstream

99Have you developed a supply chain policy and made it publicly available?
99Have you communicated the policy internally?
99Have you assigned a senior staff member to lead your due diligence system?
99Have you made the necessary resources available to support your due diligence system?
99Have you developed systems and procedures for collecting information from suppliers and sharing
information with buyers?
99Do you have a grievance mechanism in place?

Step 2:
Identify andassess risks

99Have you identified any ‘red flags’ in yourupstream supply chain?
99If yes, have you mapped the factual
circumstances of the red-flag supply chain
and have you identified the presence of any
adverse impacts as part of this exercise?
99If you have not identified red flags, proceed
to Step 4.

99Have you asked your rough exporter or Tier
1 midstream company for their due diligence
information? If you are unable to identify them,
have you asked for the due diligence informationof the furthest upstream known company in yoursupply chain?
99Are you satisfied that your rough exporter, Tier 1
midstream company or known suppliers furthest
upstream in your supply chain have carried out
due diligence in a way that is consistent with theOECD Guidance?
99Have your immediate suppliers recorded any red
flags in the upstream supply chain?
99Where there are red flags, does the due diligence
information provide adequate detail on thecircumstances of upstream production and trade?
99If you have not identified red flags, proceed to
Step 4.

Step 3:
Manage risks

99Have you shared the results of your risk assessment with senior management?
99Have you outlined your response to risks in a risk management plan?
99Are you monitoring the performance of your risk mitigation efforts?

66

Only forred flags

99Have you established a traceability
system to collect and maintain segregatedinformation for all inputs and outputs fromextraction through to import?

Step 4:
Verify99Have you reviewed the phased audit approach for this provision to determine which of the OECD
Guidance steps apply at your next RJC audit?

Step 5:
Report annually

99Do you, or are you planning to, annually report publicly on your implementation of the OECD Guidance?

RJC Code of Practices Guidance

99Have you enhanced your engagement with
red-flag suppliers and strengthened systems of
information collection?

Table 7.6. Application of the five-step framework to the diamond and coloured gemstones supply chain
OECD step

Upstream

Midstream

Downstream
Polished stones

Rough stones

Step 1:
Establish acompany
management
systemExploration,mining, ASM,
rough exporters

Tier 1 (sourcing
directly from
exploration, mining
and/or ASM)

Tier 2 (sourcing
from roughexporter, Tier 1
or other Tier 2)

Polished trade• Implement
Step 1 A–E.

• Implement
Step 1 A–E.

• Implement
Step 1 A–E.

• Same steps as for• Same steps as forTier 2 (see left box). Tier 2 (see left box).

Jewellery
manufacturing
and retail• Gather information • Gather information • Establish identity offrom Table 7.1afrom Table 7.1a
suppliers and gather
from your own
from your sources.
information from
Table 7.1b.
operations and/or • Share informationfrom your sourcesfrom Table 7.1a
• Ask about the due(if applicable).
diligence of yourwith your buyers.
• Share informationfrom Table 7.1a withyour buyers.

Step 2:
Identify andassess riskin the supply
chain

Diamond jewellery• Identify red
flags in your own
operations and, if
applicable, fromsources.
If red flags:• Map factual
circumstances of
red-flag locations.
• Assess risk ofadverse impacts.

suppliers.
• Compile aggregatedinformation onsource.
• Identify red flagsin supply chain ofsources.

• Review evidenceof due diligence by
suppliers.

If red flags:• Identify red flags in
supply chain fromthat information as
well as other data
sources.

• Map factual
circumstances ofred- flag locations.
• Assess risk in the
supply chain ofadverse impacts.

• Establish• Same steps as fortraceability on
upstream (see left
red-flag supply
box).
chains through to
Step 3: Design your last point ofand implement involvement preexport/import.
a strategy torespond to• Gather information
identified risks
from Table 7.1a
These actions
for red-flag supply
are only forchains.
red-flagged• Share findings of
portions ofrisk assessment
your supply
chainwith senior
management.
• Devise, adopt
and monitor risk
management plan.

• Same steps as for• Same steps as forTier 2 (see left box). Tier 2 (see left box).

If red flags:• Use the information
to assess risk inthe supply chain ofadverse impacts.
• Gather information • Same steps as for• Same steps as forfrom Table 7.1b and Tier 2 (see left box). Tier 2 (see left box).
seek available audit
reports covering thesourcing practicesof suppliers
and, if available,
further upstream
companies.
• Share findings ofrisk assessmentwith senior
management.
• Enhanceengagement with
suppliers.

Step 4: Thirdparty audit

Accredited RJC auditor carries out independent third-party audit of due diligence.

Step 5: Reportannually

Report annually on implementation of OECD five-step framework.

RJC Code of Practices Guidance67Annex D1 Diamonds and coloured gemstones
Annex D1.1. Supply chain policy template
1. [COMPANY NAME] is a [BRIEF DESCRIPTION OF THE COMPANY]. This policy confirms [COMPANY NAME]’scommitment to respect human rights, avoid contributing to the finance of conflict and comply with all relevant UN
sanctions, resolutions and laws.
2. [COMPANY NAME] is a certified member of the Responsible Jewellery Council (RJC). As such, we commit to proving,
through independent third-party verification, that we:a. respect human rights according to the Universal Declaration of Human Rights and International Labour Organization
Declaration on Fundamental Principles and Rights at Work;b. do not engage in or tolerate bribery, corruption, money laundering or finance of terrorism;c. support transparency of government payments and rights-compatible security forces in the extractives industry;d. do not provide direct or indirect support to illegal armed groups;
e. enable stakeholders to voice concerns about the jewellery supply chain; andf.

are implementing the OECD five-step framework as a management process for risk-based due diligence for responsible
supply chains of minerals from conflict-affected and high-risk areas.

3. We also commit to using our influence to prevent abuses by others. [HERE YOU CAN CHOOSE TO INCLUDE A BRIEFDESCRIPTION OF HOW YOU WILL CONSIDER AND ADDRESS THE RISKS OF NON-COMPLIANCE BY YOUR
SUPPLIERS. ALSO CONSIDER INCLUDING INFORMATION ABOUT YOUR COMPLAINTS MECHANISM FOR
INTERESTED PARTIES TO VOICE CONCERNS ABOUT MATERIALS FROM CAHRAS.]
4. Regarding serious abuses associated with the extraction, transport or trade of minerals:
We will neither tolerate nor profit from, contribute to, assist or facilitate the commission of:a. torture, cruel, inhuman and degrading treatment;b. forced or compulsory labour;c. the worst forms of child labour;d. human rights violations and abuses; ore. war crimes, violations of international humanitarian law, crimes against humanity or genocide.
5. We will immediately stop engaging with upstream suppliers if we find a reasonable risk that they are committing abuses
described in paragraph 4 or are sourcing from, or linked to, any party committing these abuses.
6. Regarding direct or indirect support to non-state armed groups:
We only buy or sell diamonds that are fully compliant with the Kimberley Process Certification Scheme and, as such, will
not tolerate direct or indirect support to non-state armed groups, including, but not limited to, procuring diamonds from,making payments to, or otherwise helping or equipping non-state armed groups or their affiliates who illegally:a. control mine sites, transportation routes, points where diamonds are traded and upstream actors in the supply chain; orb. tax or extort money or diamonds at mine sites, along transportation routes or at points where diamonds are traded, orfrom intermediaries, export companies or international traders.
7. We will immediately stop engaging with upstream suppliers if we find a reasonable risk that they are sourcing from, or are
linked to, any party providing direct or indirect support to non-state armed groups as described in paragraph 6.
8. Regarding public or private security forces:
We affirm that the role of public or private security forces is to provide security to workers, facilities, equipment andproperty in accordance with the rule of law, including law that guarantees human rights. We will not provide direct orindirect support to public or private security forces that commit abuses described in paragraph 4 or that act illegally as
described in paragraph 6.
9. Regarding bribery and fraudulent misrepresentation of the origin of minerals:
We will not offer, promise, give or demand bribes, and will resist the solicitation of bribes, to conceal or disguise the originof minerals, or to misrepresent taxes, fees and royalties paid to governments for the purposes of extraction, trade, handling,transport and export of minerals.
10. Regarding money laundering:
We will support and contribute to efforts to eliminate money laundering where we identify a reasonable risk resulting
from, or connected to, the extraction, trade, handling, transport or export of minerals.
Signed/endorsed:
Date of effect:
68

RJC Code of Practices GuidanceAnnex D1.2. Upstream / Tier 1 midstream information form
Part 1 – to be completed per delivery
Company information
Date

Document number

Name of company
Address
Company type

Large-scale mining				
Artisanal and small-scale mining		Rough stone exporter and/or Tier 1 midstream 

RJC COP certified Yes  No 
COP certified date
COP expiry date
Responsible
personProduct information
Product description
Product origin (mine, company or geographicallocation where mine is located; list if more than one
Locations where stones were consolidated
prior to export
Method of extraction (ASM/SSM/LSM)
Total weightTransport route to receiverPart 2 – to be completed per contract*
Policies and due diligence management systems
Do you have a supply chain policy consistent with
Annex II of the OECD Guidance?

Yes  No 
If yes, please attach policy with this document

Do you have a due diligence management system in Yes  No 
place that is consistent with the OECD Guidance?
Risk assessment
Have you carried out a risk assessment on the
product origin/source (and its transport) basedon an approach that is aligned with the OECD
Guidance?

Yes  No 
If yes, please attach details/evidence with this document(e.g. a copy of your risk assessment report)

If yes, did you identify any ‘red flags’ as part of that Yes  No 
risk assessment?
For red flags only
What type of red flags have you identified?
(tick all that apply)

Red-lag location		Red-flag supplier		Red-flag circumstancesProvide a description/summary of the red flags
identified (for example, you have determined basedon your risk assessment that the source or origin of thematerial is a CAHRA)RJC Code of Practices Guidance69

• Serious abuses associated with the extraction, transport or trade ofminerals (requires immediate disengagement) • Direct or indirect support to non-state armed groups(requires immediate disengagement) 
During your risk assessment, did you identify the • Direct or indirect support to public or private security forces who illegallypresence of any of the following adverse impacts in control, tax or extort money from mine sites, transportation routes andthe red-flag supply chain? (tick all that apply)
upstream actors • Bribery and fraudulent misrepresentation of the origin of minerals • Money laundering and non-payment of taxes and royalties due togovernments • None of the above risks have been identified 
Have you implemented a risk management plan
to prevent or mitigate potential or actual adverse
impacts?

Yes  No 

If yes, provide a description/summary of your risk
management plan
Have you established, or are you participating in,a traceability system that collects and maintains
segregated information for all material inputs
and outputs from red flagged supply chains (fromextraction through to export)

Yes  No 

Confirm you have carried out the following (you do not need to disclose commercially sensitive evidence/documentation related
to these actions with buyers, but you should keep records on file as part of your internal management system)
Have you recorded details of all taxes, fees orYes  No 
royalties you have paid to the government related
to the material’s extraction, transport and/or
export? (this only applies to payments you have made)Yes  No 
Have you recorded details of all payments orcompensation (including facilitation payments)
made to government agencies and officials related
to the material’s extraction, transport and/or
export (this only applies to payments you have made)Have you recorded details of all payments madeto public or private security forces or other armed
groups (this only applies to payments you have made)Yes  No 

For miners: Have you carried out KYC checks of all Yes  No 
third-party service providers handling the material(e.g. transportation companies) or providing
security at mine sites and along transportationroutes?
For exporters: Have you carried out KYC checks to Yes  No 
identify all suppliers and relevant service providers(e.g. transportation companies) from the point oforigin through to export?
*You do not need to complete PART 2 of the form for every delivery, unless the circumstances of production and export havechanged since you last completed this section.

70

RJC Code of Practices GuidanceAnnex D1.3. Tier 2 Midstream/downstream information form
To be completed per supplierCompany information
Date

Document number

Name of company
Address
RJC member

Yes  No 

COP certified date
COP expiry date
Responsible
personPolicies and due diligence management systems
Do you have a supply chain policy consistent with
Annex II of the OECD Guidance?

Yes  No 
If yes, please attach policy with this document

Do you have a due diligence management system in Yes  No 
place that is consistent with the OECD Guidance?
Product source and origin

What are your product sources? (this information
can be provided in aggregate form, e.g. a list of all
countries, areas and/or companies where you havesourced from)

1. Mined rough/polished stones with known origin (mine, company
or geographical location where the mine is located) ______%
List the percentage of product you supply to us
that falls into the following categories:

2. Mined rough/polished stones where there is no information available
on origin ______%
3. Recycled stones ______%
4. Grandfathered stones ______%

Risk assessment
Yes  No 
Have you carried out a risk assessment on yoursuppliers based on an approach that is aligned with If yes, please attach details/evidence with this document
the OECD Guidance?
(e.g. a copy of your risk assessment report)
If yes, did you identify any ‘red flags’ as part of that Yes  No 
risk assessment?
For red flags only
What type of red flags have you identified?
(tick all that apply)

Red-lag location		Red-flag supplier		Red-flag circumstancesProvide a description/summary of the red flags
identified (for example, you have determined basedon your risk assessment that the source or origin of thematerial is a CAHRA)RJC Code of Practices Guidance71• Serious abuses associated with the extraction, transport or trade ofminerals (requires immediate disengagement) • Direct or indirect support to non-state armed groups(requires immediate disengagement) • Direct or indirect support to public or private security forces who illegallycontrol, tax or extort money from mine sites, transportation routes andDuring your risk assessment, did you identify thepresence of any of the following adverse impacts in upstream actors 
the red-flag supply chain? (tick all that apply)• Bribery and fraudulent misrepresentation of the origin of minerals • Money laundering and non-payment of taxes and royalties due togovernments • None of the above risks have been identified Note: See Annex II of the OECD Guidance for further information on
relevant adverse impacts

Have you implemented a risk management plan
to prevent or mitigate potential or actual adverse
impacts?

Yes  No 

If yes, provide a description/summary of your risk
management plan
Have you had your due diligence practices
independently audited?

72

RJC Code of Practices GuidanceYes  No 
Note: If yes, please attach a copy of the audit report with this form

D.2 Gold, silver and PGM implementation guidanceThis section is for companies in the gold, silver and PGM supply chain.

OECD Step 1 Establish strong company management systems
1A. Supply chain policy• Establish a supply chain policy clearly stating your position on responsible sourcing from CAHRAs. Your policy should cover
all the risks that are relevant to your business, but make sure that, at a minimum, it addresses each of the risks associatedwith CAHRAs (see box ‘CAHRAs and Annex II risks’ in Section B above).
• Refiners that are already, or plan to be, certified against the LBMA Responsible Gold Guidance should note that Version 8of the LBMA guidance extends the scope of risks to include environmental and sustainability considerations, in addition to
OECD Guidance Annex II risks.12 All companies should consider incorporating this into the supply chain policy and wider due
diligence management systems.
• Within your supply chain policy, set out your commitment to the due diligence steps as described in the OECD Guidance
Supplement on Gold.
• Your policy and associated management system can be stand-alone or part of a broader policy. Either way, make sure it isaligned with and linked to your policies and procedures on KYC (COP 12 Know Your Counterparty: money laundering andfinance of terrorism), human rights (COP 6 Human rights) and other relevant policies.
• See Annex D2.1 below for a supply chain policy template that you can use and adapt to meet the circumstances of yourbusiness.
• Try to involve all staff affected by the policy in its development, to help ensure it can be practically implemented. For
example, consult staff responsible for material procurement, production and communications, etc. It may also be worth
consulting key external stakeholders.
• Use the policy to clarify your position and expectations to suppliers and other stakeholders by:•making it publicly available (for example, on your website or in institutional literature);•sending it directly to immediate suppliers via contracts or other notifications; and•subject to available resources, training suppliers and building their capacity to better understand and adhere to yourrequirements.

1B. Structure management systems that support due diligence• A due diligence management system is a framework for co-ordinating activities, documents and outputs across multiple,
interrelated functions. It may consist of procedures, checklists, guidance documents, trainings and electronic databases,or only some of these.
• To be effective, your due diligence management system should allow you to identify suppliers, and to assess any associatedrisks relevant to your supply chain policy. In practice, this means:•

integrating the system across the different units that implement and support the supply chain policy; and•allocating enough resources to run and monitor the system effectively.

• Assign a senior staff member to lead your due diligence management system. This person should be suitably qualified orexperienced, and should:

12•

lead the supply chain policy’s development and implementation;•

co-ordinate and communicate the policy’s implementation across your organisation;•

work to ensure all relevant suppliers respect the policy, and review business relationships with suppliers based on risk
levels;•carry out internal and (if relevant) external training;•

respond to identified supply chain risks;•publicly report on due diligence every year (see Step 5); and•review and propose improvements to the due diligence system.

LBMA, Responsible Gold Guidance Version 8 http://www.lbma.org.uk/assets/downloads/responsible%20sourcing/RGGV820181211.pdf

RJC Code of Practices Guidance73• Depending on your available resources, you may decide to delegate some of the above tasks to different people, but ultimate
responsibility should remain with one senior member of staff.
• Record any decisions made about the due diligence system through, for example, meeting minutes or internal memos orrecords: these may also be used as evidence during audits.

1C. Establishing a system for transparency and controls over the supply chain• Before you can identify and assess risk, you must understand your supply chain and identify your suppliers. That means
collecting different types of information and documents, depending on your position in the supply chain (see Figure 7.4):•

Downstream companies (any company after the refiner up to and including the retailer) should ask their immediate
suppliers for the identity of upstream refiners and obtain proof that the refiner has conducted due diligence in accordancewith the recommendations of the OECD Guidance.

•

Miners and refiners or others sourcing from mines should have a clear understanding of the mines of origin.

Figure 7.4. How to identify the origin of gold, silver and PGM depending on the business type

Miner

Reﬁner

Downstream company

If sourcing from mines outside ofyour direct control, maintain aclear understanding of the originof the material

Determine origin (including minesite names) by requesting thisfrom your suppliers

Request identity of
upstream reﬁners fromyour immediate suppliers

Pass on information to
your customers

Pass on information to
your customers

Request veriﬁcation that the reﬁner
has conducted due diligence inaccordance with the OECD GuidanceWhere possible, seek reference
to recognised audits andassurance programmes

Pass on information to yourcustomers (where applicable)• The type of information you will need as proof of origin varies depending on the type of material at hand (see Table 7.7).
Table 7.7. Information needed for determining the origin of different types of material

74

Material typeDefinition

Information needed in determining origin

Mined gold/
silver/PGM

Gold/silver/PGM that comes from mines andhas never been refined.

Miners and refiners shall identify the country
and mine of origin.

Gold/silver/PGM that has been previously refined, suchas end-user, post-consumer gold-bearing products, andRecycled gold/ scrap and waste metals and materials arising during
silver/PGM
refining and product manufacturing, which are returned
to a refiner or other downstream intermediate processor
to begin a new life cycle as recycled gold/silver/PGM.

Refiner members shall confirm that the gold/
silver/PGM received is recycled material andshall obtain sufficient information to reasonably
exclude false representations made to hide theorigin of newly mined material in recycled gold/
silver/PGM supply chains.

Refined gold/PGM with a verifiable date of production
Grandfathered prior to 1 January 2012.
gold/silver/
Refined silver with a verifiable date of production prior
PGM
to 1 January 2018

Origin determination is not required unless there
is reasonable evidence to suspect the authenticityof the grandfathered status of the material (seeOECD Step 2).

RJC Code of Practices GuidanceControl points
Control points (also sometimes called choke points) are stages in the supply chain with generally higher visibility andcontrol over upstream stages. Where identified, they become a key focus area for the collection and sharing of informationon the circumstances of upstream production and trade. The OECD Supplement on Gold identifies the refiner as thelogical control point in the gold supply chain, and for the purpose of the COP, this also extends to silver and PGM.
• Whatever your company type, you are expected to keep, as a minimum, internal inventory and transaction documents toretrospectively identify material inputs and outputs for all gold, silver and PGM. That means collecting:•information on the form, type and weight of material inputs; and•supplier details, including KYC information(see COP 12 Know Your Counterparty: money laundering and finance ofterrorism).

• For examples of the types of documents and evidence to collect, see Annex D2.2 below.
• In practice, you can gather this information in several different ways:•

Use checklists and forms, where applicable, to collect information from suppliers.

•

Collect information directly in meetings (smaller companies may find this approach easier).

•

Depending on resources available, consider using electronic data management software to help streamline your supply
chain mapping and information gathering.

• In all cases, be sensitive to commercial confidentiality concerns. See the OECD Due Diligence Guidance for Responsible
Business Conduct for tips on how to do this, which include, for example, limiting access to a supplier’s sensitive information
or asking for aggregate information rather than specific business relationships.13• Your suppliers will already be gathering some information on their sourcing through existing policies and procedures (forexample, to comply with legal requirements) which may serve as a useful starting point.
• Regardless of where you are in the supply chain, and what material you handle, make sure you keep all information for atleast five years, and make it available to buyers and auditors further downstream.

Q&A: Information gathering
How can I help my suppliers understand my expectations?
Adopt some or all of the following approaches:• Clearly reference your supply chain policy in all commercial contracts and written agreements, invoices, consignment
notes or other relevant documents.
• Contact all your suppliers to discuss the policy and requirements and let them ask questions. This will also give you an
opportunity to assess any training or capacity-building needs. Your suppliers may already have relevant systems andpolicies in place that meet some or all of your needs.
• Help your suppliers develop their own risk management strategy, consistent with your supply chain policy.
What can I do if my suppliers are unable or unwilling to provide the information I need?
There may be several reasons why a supplier cannot or will not give you the information you need. Some of these will beeasy to resolve; others may require more complex solutions. You should explore your options before deciding whether tosuspend or terminate your relationship. Example issues and potential solutions include:• The supplier does not understand the request: talk to the supplier again and tell them what information you need andwhy. Offer training where applicable.
• The supplier can’t get the information from its own upstream suppliers: offer to help by setting up joint meetings with
upstream suppliers or by supporting them to organise their management system to better map the supply chain.
• The supplier does not want to provide the information because it is confidential: discuss the possibility of a nondisclosure agreement to manage information sharing and reassure the supplier about the precise use of theirinformation.
If you are starting with very little or no information on upstream sources, you can still demonstrate compliance with thisprovision by explaining and documenting the steps you’ve taken to seek information and your plans to improve your dataover time.

13

OECD, OECD Due Diligence Guidance for Responsible Business Conduct (2018) p. 87
http://mneguidelines.oecd.org/OECD-Due-Diligence-Guidance-for-Responsible-Business-Conduct.pdf

RJC Code of Practices Guidance

751D. Strong engagement with suppliers• Try to establish long-term relationships with suppliers (rather than short-term or one-off contracts).
• Communicate to suppliers your expectations that they will undertake supply chain due diligence and risk management inways that are consistent with your supply chain policy. If any problems arise, work with them to try and resolve the issue
before you consider suspending or terminating the relationship. This may include training or building capacity to help
suppliers provide the assurances you need.
• Include provisions for sharing due diligence information in your commercial contracts with suppliers. Contracts may also
include your right to conduct unannounced spot checks and to have access to relevant documentation.
• Where practical, encourage suppliers to source from refiners that have been third-party audited against a standard that
conforms with the OECD Guidance.

1E. An effective grievance mechanism• An effective supply chain grievance mechanism:•

offers all parties (affected stakeholders or whistle-blowers) a way to raise concerns about the businesses, organisations,individuals or activities in your supply chain; and•serves as a tool for identifying and reacting to issues in your supply chain that may otherwise go unnoticed.

• Your grievance mechanism can be the same one as (or aligned with) that required under COP 6 Human rights.
• When developing and implementing a grievance mechanism, make sure you:•

Make the mechanism easily accessible to all who may wish to use it: this means allowing for grievances to be submitted in
multiple ways—by email, letter, telephone and in person.

•

Protect whistle-blowers by allowing them to remain anonymous.

•

Keep an accurate and updated log of all grievances and follow-up actions.

•

Develop a transparent process and procedure for responding to grievances, and respond to all grievances in a timely andefficient manner.

•

Follow up each grievance with a verifiable corrective action that can be monitored and assessed. If a grievance is dismissed
without any follow-up, accurately log and record full justifications and details of any investigation.

OECD Step 2 Identify and assess risks in the supply chain
2A and B. Red-flag supply chains• Step 2 begins with using the information you have gathered in Step 1 on your supply chain to identify red flags, as definedby the OECD Guidance (see Table 7.8). These red flags are an indicator of a potential risk that requires further investigation
through a subsequent risk assessment, and, where necessary, mitigation measures.
Table 7.8. List of OECD red flags (republished from the OECD Guidance: Gold Supplement)
Type of red flag

Description of red flag
The gold/silver/PGM originates from or has been transported through a CAHRA.

Red-flag locations(location of gold/
silver/PGM origin
and transit)

The gold/silver/PGM is claimed to originate from a country that has limited known reserves or stocks,
likely resources or expected production levels of gold/PGM/silver (that is, the declared volumes of gold/
silver/PGM from that country are out of keeping with its known reserves or expected production levels).
The gold/silver/PGM is claimed to originate from a country through which gold/silver/PGM fromCAHRAs is known or reasonably suspected to transit.
The gold/silver/PGM is claimed to originate from recyclable, scrap or mixed sources and has beenrefined in a country where gold/silver/PGM from CAHRAs is known or reasonably suspected to transit.

Red-flagsupplier

Red-flagcircumstances76

RJC Code of Practices Guidance

Suppliers or other known upstream companies operate in one of the above-mentioned red-flag locationsof gold/silver/PGM origin and transit, or have shareholder or other interests in suppliers of gold/silver/
PGM from one of the above-mentioned red-flag locations of gold/silver/PGM origin and transit.
Suppliers or other known upstream companies are known to have sourced gold/silver/PGM from a redflag location of gold/silver/PGM origin and transit in the last 12 months.
Anomalies or unusual circumstances are identified through the information collected in OECD Step 1,
which give rise to a reasonable suspicion that the gold/silver/PGM may contribute to conflict or serious
abuses associated with the extraction, transport or trade of gold/silver/PGM.

• Regularly review and evaluate your exposure to risk, especially when forming relationships with new suppliers, or when
existing suppliers change their sourcing practices:•

For miners and refiners, that means identifying any red flags in your supply chain and investigating them. Miners thatpurchase material from other sources should also determine whether that material has red flags.

•

For downstream companies, it means first identifying the refiners in your supply chain and then making reasonable andgood faith efforts to get evidence from them of their due diligence to see whether they have identified, or reasonably
should have identified, red flags in their supply chains. You can rely on evidence generated in OECD Step 1 as well as anyother information you collect by engaging directly with your suppliers.

• To identify a red flag, you need to review the context of each location of gold, silver and PGM origin and transport, relying on
evidence from credible sources, and use your best endeavours to make reasonable determinations based on the definition of
CAHRA.
• In practice, that means looking at all countries, regions and areas that you source, or plan to source, gold, silver or PGM fromand determining whether they are a CAHRA or not (see Figure 7.6 and box ‘Resources for identifying a CAHRA’).
• If you have been able to reasonably determine that these red flags are not present in your supply chain, then the sources canbe considered low risk, requiring minimal further action other than ensuring that:•Your company management system (described in Step 1) continues to work effectively.

•

You report publicly on your due diligence practices as per Step 5.

Resources for identifying a CAHRA
You can review a range of documents and resources from credible sources to check for CAHRAs. This includes:• research reports from governments, international organisations, NGOs and media;• maps, UN reports and UN Security Council sanction lists; and• relevant industry literature on the material’s extraction, and its impacts on conflict and human rights.
The EU Commission has published a list of publicly accessible resources that can be used for the identification of
CAHRAs.14 The OECD is developing the ‘Portal for Supply Chain Risk Information’, which is designed to help companies
understand and prioritise risks in their supply chains.15
For COP certification, you must be able to show that you have adequately reviewed and considered credible sources of
information, and auditors will only flag inconsistencies in your approach that are clearly linked to a weak due diligence
management system as a non-conformance.
,

14 15

14

Commission Recommendation (EU) 2018/1149 (2018) https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:32018H1149

15

OECD, Portal for Supply Chain Risk Information www.oecd.org/daf/inv/mne/oecd-portal-for-supply-chain-risk-information.htm

RJC Code of Practices Guidance77

Governance

Areas with weak or nogovernance or security, including:political instability or repression
institutional weakness
insecurity
collapse of civil infrastructure
widespread violenceConﬂict
Human rights

Areas affected by widespread
human rights abuses and violationsof law, including:torture or cruel and degrading
treatment

Areas in a state of conﬂict, including:forced and child labour

international conﬂictwidespread sexual violence

wars of liberation or insurgencies

war crimes

civil wars

crimes against humanity

any other armed aggression

genocideFigure 7.5. CAHRA characteristics• Make sure you have, or can access, the necessary skills, resources and systems to undertake the task effectively. Consider
whether an assessment by a qualified person should also be undertaken to determine if conflict is prevalent in the areas
through which material in your supply chain is extracted and/or transported.

2C and D. Risk review, mapping and risk assessment• The presence of a red flag does not mean that adverse impacts have occurred in your supply chains. Your risk assessment ismeant to look for the presence of adverse impacts related to CAHRAs, as highlighted in Annex II of the OECD Guidance (seebox ‘What are adverse impacts related to CAHRAs?’).

What are adverse impacts related to CAHRAs?
Adverse impacts related to mineral supply chains are outlined in the OECD Guidance Annex II Model Supply Chain Policy as:• Serious abuses associated with the extraction, transport or trade of minerals.
• Any forms of torture, cruel, inhuman and degrading treatment.
FigureSixofelements
freedom oflabour.
association.
• Any19.1.
forms
forced orofcompulsory
Source: ETI. Freedom of Association in Company Supply Chains: A Practical Guide (2013)• The worst forms of child labour.
• Other gross human rights violations and abuses such as widespread sexual violence.
• War crimes or other serious violations of international humanitarian law, crimes against humanity or genocide.
• Direct or indirect support to non-state armed groups.
• Direct or indirect support to public or private security forces.
• Bribery and fraudulent misrepresentation of the origin of minerals.
• Money laundering and non-payment of taxes and royalties due to governments.

78

RJC Code of Practices Guidance• Wherever you identify a red flag, assess the risk that adverse impacts are occurring as follows (see also Figure 7.6):•

If you are a miner or refiner, map the factual circumstances of all red-flag supply chains, under way and planned (see box‘
Mapping the factual circumstances of red-flag supply chains (for upstream companies)’).

•If you are a downstream company, further evaluate the due diligence and risk mitigation practices of the refiners in yoursupply chain, including information generated from on-the-ground assessments, and review this against the due diligenceprocesses of the OECD Guidance. Collect information that can identify all countries of origin, transport and transit for theminerals in the supply chains of each refiner. Also determine whether the refiners in your supply chain with red flags have
had their due diligence practices independently audited against a standard that is consistent with the OECD Guidance
and, where available, get the results and review them.

Mapping factual circumstances of red-flag supply chains (for upstream companies)
Mapping the factual circumstances of red-flag supply chains involves four main sets of activities. If you are a mining
company not sourcing from anyone else, only Steps I (review of context) and II (on-the-ground assessments) apply andshould be part of your operational risk assessment process.
i. An in-depth review of the context of all red-flag locations and the due diligence practices of any red-flagged suppliers:• Review reports, maps and relevant literature on extraction, transport and trade in the red-flag location, particularly
whether these give rise to any of the major CAHRA risks.
• Engage stakeholders, consulting for example with local and central governments, local civil society organisations,community networks, etc.
• Use methods that are consistent with the OECD Guidance to determine whether upstream suppliers (if you have any)
have working policies and systems (for example, desktop research, site visits, random verification of purchase records,
process reviews for purchase, and anti-money laundering and counter-terrorist financing mechanisms).
ii. On-the-ground assessments for mined material to generate and maintain information on how suppliers extract, trade,handle and export their mined material:• Ensure that assessors are independent from the activity being assessed and without conflict of interests.
• Ensure the appropriate level of competence, by employing experts with appropriate knowledge and skill.
• Establish a joint assessment team with other companies working in similar areas or through an industry or multistakeholder mechanism or initiative, or carry out independent assessments on the ground.
iii. Determination of source type, that is finding out whether the mined material originates from artisanal and small-scale
mining or large-scale mining:• Depending on the answer, collect extra evidence on factual circumstances of extraction, trade, handling and export as
specified in the OECD Guidance.
iv. On-site visits to suppliers of recycled gold, silver and PGM using a risk-based approach, with priority given to people,
places and transactions that present higher risk:• Risk factors here may include value of transaction, place of transaction, type of material, unusual circumstances andtype of supplier.
• Look for evidence of inconsistencies between your supply chain policy and the factual circumstances of extraction,transportation and trade of material.
• In all cases, keep a record of the information and evidence you used for your risk assessment.
• Do not automatically disengage a source if it is deemed high risk: engage with your suppliers first and adopt risk mitigation
strategies (see Step 3) where possible and appropriate before considering suspending or terminating your business
relationship.
• Note that under the OECD Guidance, you are responsible for identifying the red flags and carrying out a risk assessment foryour suppliers whether or not they belong to any external supply chain initiatives and programmes. That means you should
not rely on external parties, including the RJC, to undertake any aspect of due diligence on your behalf (other than the thirdparty audit).

RJC Code of Practices Guidance79Miner or
reﬁner

Downstream
companies

No red ﬂags in
supply chain(low risk)

Go back to OECD
Proceed to Step 4(audit)Red ﬂags in supply
chain (high risk)

Map factual
circumstances of red
ﬂag locations

No red ﬂags in supply
chain of upstream
reﬁner (low risk)

Go back to OECD
Proceed to Step 4(audit)Upstream reﬁner has
red ﬂags in supply
chain (high risk)

Evaluate supply
chain due diligencepractices of reﬁner

Assess risk inthe supply
chain

Proceed toOECD Step 3(Risk mitigation)

Assess risk inthe supply
chain

Proceed toOECD Step 3(Risk mitigation)

Figure 7.6. What to do if you identify red flags in the supply chain for different business types

OECD Step 3 Design and implement a strategy to respondto identified risks• If you identified a risk in Step 2, you will need to design and implement a risk management strategy that enables you toprevent or mitigate risks that already exist in your supply chain and react promptly and appropriately to any changes thatarise.
•

This is true even if there is no direct evidence to suggest that the risk is currently associated with an actual adverse impact.

3A. Findings report• Share the following information with the designated senior management:•

An outline of the information gathered from the risk assessment carried out in Step 2.

•

Details of the risks identified.

3B. Enhanced engagement with suppliers• Strengthen your engagement with high-risk suppliers and enhance internal systems of transparency, information collection
and control over your gold/silver/PGM supply chain.
• For miners and refiners, stronger engagement includes:•

establishing a traceability system that collects and maintains disaggregated information from the red-flagged supply
chain;•

enhancing physical security practices over the supply chain;•

physically segregating any material that has an identified risk of association with conflict and serious abuses of humanrights; and•incorporating the right to unannounced spot checks in commercial contracts and written agreements with suppliers.

• For downstream companies, this means regularly reviewing and updating information on the identity of refiners andassociated due diligence findings from OECD Step 2.

80

RJC Code of Practices Guidance3C. A risk management plan
• Outline your response to potential and/or actual adverse impacts in a risk management plan (in line with Annex II of theOECD Guidance).
•

If you have identified an actual adverse impact in your supply chain, you will need to take steps to resolve the issue andmitigate the impact.

•

The action you decide to take will depend on the type of impact identified (see Table 7.9).

•

Serious impacts will require immediate action, including disengaging the supplier or temporarily suspending trade until theimpact has been mitigated.

•

If you haven’t identified an actual impact but can see that there is potential for an adverse impact, you will need to takepreventive measures.

• In deciding how to respond to risk, consult the recommendations included in Annex II and Annex III of the OECD Guidance(which include advice on when to disengage, suspend or continue a business relationship).

Table 7.9. Adverse impacts and the appropriate response (based on the OECD Guidance Annex II recommendations)
Adverse impact

Appropriate response

Serious abuses associated with the extraction, trade andtransport of minerals

Immediately suspend or disengage from suppliers.
Mitigate where possible.

Direct or indirect support to non-state armed groups

Immediately suspend or disengage from suppliers.
Mitigate where possible.

Direct or indirect support to public or private security
forces who illegally control mine sites, transport routes
and upstream actors (including illegal taxation)

Continue, or temporarily suspend, trade with suppliers,
but implement measurable mitigative actions. Suspend or
disengage if mitigation measures are ineffective.

Bribery and fraudulent misrepresentation of the origin ofgold/silver/PGM

Continue, or temporarily suspend, trade with suppliers,
but implement measurable mitigative actions. Suspend or
disengage if mitigation measures are ineffective.

• In devising appropriate mitigation measures, reach out to companies and individuals in your supply chains that can mosteffectively and most directly mitigate the identified risks.
• Adapt your plan based on the level of identified risks and impacts, recognising that factors such as severity and probability ofan adverse impact are important in determining the scale and complexity of the due diligence response.
• Where possible, consult all affected stakeholder groups before agreeing a risk mitigation strategy.

3D and E. Implementation and follow-up• Implement your risk management plan by carrying out all the actions (for both mitigation and prevention) you have decided on.
• Continue to monitor the situation in your supply chain to assess your plan’s performance and effectiveness.
• Keep your risk management strategy flexible so that you can adapt to any changes in your supply chain, and remember thatsuch changes may require you to repeat some of the steps already taken to identify, prevent or mitigate adverse impacts.
• For adverse impacts that do not require immediate suspension or disengagement, define a timeframe for achieving
significant measurable improvement (maximum six months) and continue monitoring the supply chain to assess your plan’seffectiveness.
• If, after reasonable efforts at mitigation, you still fail to achieve your desired outcomes, you may need to disengage fromthe supplier.

RJC Code of Practices Guidance81OECD Step 4 Carry out independent third-party audit ofdue diligence practices• Regardless of your position within the gold, silver or PGM supply chain, you will be audited as part of the normal COP
certification process.
• The OECD Supplement on Gold additionally recommends that downstream companies in the gold supply chain participate
in and support the independent third-party audit of the refiner’s due diligence practices and are encouraged to do so throughindustry programmes to increase efficiency in implementing the OECD Guidance.
• Where possible, seek to source your gold from refiners that are certified under a scheme that is consistent with the OECD
Guidance. This includes one or more of the standards below:•

The Responsible Jewellery Council Code of Practices (this standard).

•

RMI (previously known as the Conflict-Free Sourcing Initiative) Gold Refiner Standard.

•

LBMA Responsible Gold Guidance.

•

Dubai Multi Commodities Centre (DMCC) Practical Guidance and Review Protocol.

• If none of the above applies, you should engage with and support the refiner to get independently third-party audited for its
due diligence practices. This may include defining a new audit standard consistent with the recommendations set out in theOECD Guidance and ensuring that audits are implemented in accordance with the scope, criteria, principles and activities
described in Step 4 of the OECD Guidance framework.
• Downstream companies in the silver and PGM supply chain should, where feasible, encourage silver and PGM refiners to carryout an independent third-party audit against a standard that is consistent with the recommendations of the OECD Guidance.

OECD Step 5 Report annually on supply chain due diligence• Regular public reports promote transparency and generate public confidence. Make sure you report publicly on your due
diligence systems and practices at least once a year, for example through your company website or through applicable company
reports and publications. The information you need to include varies according to your business type (see Table 7.10).
• Match the level of detail in your report with the level of risk in your supply chain. For example, if you don’t source from a
CAHRA, you don’t need to report on Step 3.
• Be practical in how you format your report, taking into account the scale and impacts of your business. For example, if you
are a small business, you do not need a printed publication—a simple memorandum will do.

82

RJC Code of Practices GuidanceTable 7.10. Annual reporting requirements under OECD Step 5 (and RJC COP certification)
Category

Reporting information to include:

Miners and refiners
Supply chain policy.
Step 1: Establish strong
company management
systems

Management structure and responsibilities for due diligence programme.
Internal control systems and processes for information collection.
Record-keeping system and processes for identifying material origin.
Systems for identifying red-flag locations.

Description of red flags in supply chain.
Step 2: Identify and assess
Steps taken to map red-flag supply chains.
risk in the supply chain
Methods, practices and information yielded by on-the-ground assessment teams.
Actual and potential risks identified (not for potential suppliers).
How internal control systems have been strengthened to collect reliable informationfrom red-flag supply chains.
Step 3: Design andimplement a strategy
to respond to identified
risks (if applicable)

Steps taken to manage risks, including involvement of affected stakeholders.
Efforts made to monitor and track performance for risk mitigation.
Number of instances where member has decided to disengage from suppliers.
All instances of risk mitigation and results of follow up after six months.

Additional reporting requirements for refiners
Step 4: Carry out
independent third-party
audit of refiner’s due
diligence practices

Summary audit report with due regard taken of business confidentiality and other competitive
security concerns, including details of audit dates, activities, methodology and conclusions(either directly or through co-operation with an industry programme or institutionalisedmechanism).

Downstream companies
Step 1: Establish strong
company management
systems

Supply chain policy.
Management structure and responsibilities for due diligence programme.
Record-keeping systems.
Steps taken to identify refiners in supply chain.

Step 2: Identify andassess risk in the
supply chain

Assessment of supplying refiner’s due diligence practices.
Methodology of company supply chain risk assessments.
Actual or potential risks identified.

Steps taken to manage risks, including involvement of affected stakeholders.
Step 3: Design andimplement a strategy to
Efforts made to monitor and track performance for risk mitigation.
respond to identified risks(if applicable)
All instances of risk mitigation and results of follow up after six months.

RJC Code of Practices Guidance

83

COP 7.1 and 7.2: For refiners
Refiner members shall:a. Maintain internal material control systems that can reconcile movement of inventory in and out over a given time.
b. Gold refiners shall additionally collect and, with due regard to business confidentiality, share annually information with
the RJC on the mine of origin of mined gold received.

Points to consider:• Establish and implement systems for internal material control.
• For all your inputs (gold, silver or PGM received), record:•

the date you physically receive the material, or the date it enters your control system;•

the material’s form, type and physical description of the material;•

the material’s weight and assay (assay determinations may be provided by the counterparty, refiner or a third party); and•a unique internal reference number assigned by bar, ingot or batch of material accepted—make sure the number is thesame as that used on any other information collected on that material.

• For all your outputs (gold, silver or PGM sent out), record and make the product identifiable with:•your name and/or stamp or logo;•

the year of refining or production; and•a unique reference (for example, serial number, electronic identification or other practicable means).

• Make sure that the total weight of material received and in inventory during the audit period can be reconciled withmovements in and out of inventory for the same period.
• Adopt tamper-proof physical security measures for all outputs.
• If you are a gold refiner, remember to share your data on mine of origin with the RJC (see box ‘Sharing data with the RJC’).

Sharing data with the RJC
All gold refiners seeking COP certification must share their data on mine of origin with the RJC each year, including:• A list of mines of origin for all gold received. At the time of COP certification, this list should cover the audit period;
afterwards it should be provided on an annual basis.
• The identity of any mines of origin in CAHRAs.
• A summary of the criteria used to determine CAHRAs.
This data will be used to inform the RJC’s training and to maintain the integrity of harmonisation with the RMI Gold
Refiner Standard and the LBMA’s Responsible Sourcing programme.

84

RJC Code of Practices GuidanceOECD step

Check list
Miners and refiners

Step 1:
Management
system

Downstream companies

99Have you developed a supply chain policy and made it publicly available?
99Have you communicated the policy internally?
99Have you assigned a senior staff member to lead your due diligence system?
99Have you made the necessary resources available to support your due diligence system?
99Do you have a grievance mechanism in place?
99Have you developed systems and procedures for collecting information from suppliers (whereapplicable) and sharing information with buyers?

Step 2:
Identify andassess risks

99Have you identified any ‘red flags’ in yourupstream supply chain?
99If yes, have you mapped the factual
circumstances of the red flag supply
chain (i.e. a risk assessment) and have you
identified the presence of any adverse
impacts as part of this exercise?
99If you have not identified red flags, proceed
to step 4.

99Have you made reasonable and good faith efforts
to obtain evidence that the refiners in your supply
chain have conducted due diligence and to see
whether they have identified, or reasonably
should have identified, red flags in their supply
chains?
99Are you satisfied that the refiners in your supply
chain have carried out due diligence in a way thatis consistent with the OECD Guidance?
99Where there are ‘red flags’, does the due diligence
information provide adequate detail on thecircumstances of upstream production and trade?
99If you have not identified red flags, proceed tostep 4.

Step 3:
Manage risks

99Have you shared the results of your risk assessment with senior management?
99Have you outlined your response to risks in a risk management plan?
99Are you monitoring the performance of your risk mitigation efforts?

Only forred flags

99Have you established a traceability
system to collect and maintain segregatedinformation for all inputs and outputs fromextraction through to the refiner?

Step 4:
VerifyStep 5:
Report annually

99Are you regularly reviewing and updating
information on the identify of refiners andassociated due diligence findings from OECD
Step 2?
99Have the refiners in your supply had an
independent third-party audit against a standard
that is consistent with the OECD Guidance?

99Do you, or are you planning to, annually report publicly on your implementation of the OECD Guidance?

Annex D2. Gold, silver and PGM
Annex D2.1. Example supply chain policy
The following draft can be modified or adapted to suit individual businesses.
1. [COMPANY NAME] is a [BRIEF DESCRIPTION OF THE COMPANY]. This policy confirms [COMPANY NAME]’scommitment to respect human rights, avoid contributing to the finance of conflict and comply with all relevant UN
sanctions, resolutions and laws.

RJC Code of Practices Guidance85

2. [COMPANY NAME] is a certified member of the Responsible Jewellery Council (RJC). As such, we commit to proving,
through independent third-party verification, that we:a. respect human rights according to the Universal Declaration of Human Rights and International Labour Organization
Declaration on Fundamental Principles and Rights at Work;b. do not engage in or tolerate bribery, corruption, money laundering or finance of terrorism;c. support transparency of government payments and rights-compatible security forces in the extractives industry;d. do not provide direct or indirect support to illegal armed groups;
e. enable stakeholders to voice concerns about the jewellery supply chain; andf.

are implementing the OECD five-step framework as a management process (and Supplement on Gold if applicable) forrisk-based due diligence for responsible supply chains of minerals from conflict-affected and high-risk areas.

3. We also commit to using our influence to prevent abuses by others. [HERE YOU CAN CHOOSE TO INCLUDE A BRIEFDESCRIPTION OF HOW YOU WILL CONSIDER AND ADDRESS THE RISKS OF NON-COMPLIANCE BY YOUR
SUPPLIERS THROUGH YOUR SUPPLY CHAIN POLICY. ALSO CONSIDER INCLUDING INFORMATION ABOUT YOURCOMPLAINTS MECHANISM FOR INTERESTED PARTIES TO VOICE CONCERNS ABOUT MATERIALS FROM CONFLICTAFFECTED AREAS. YOU CAN USE THE OECD DUE DILIGENCE GUIDANCE MODEL SUPPLY CHAIN POLICY AS A
REFERENCE IN DEVELOPING YOUR POLICY.]
4. Regarding serious abuses associated with the extraction, transport or trade of gold:
We will neither tolerate nor profit from, contribute to, assist or facilitate the commission of:a. torture, cruel, inhuman and degrading treatment;b. forced or compulsory labour;c. the worst forms of child labour;d. human rights violations and abuses; ore. war crimes, violations of international humanitarian law, crimes against humanity or genocide.
5. We will immediately stop engaging with upstream suppliers if we find a reasonable risk that they are committing abuses
described in paragraph 4 or are sourcing from, or linked to, any party committing these abuses.
6. Regarding direct or indirect support to non-state armed groups:
We will not tolerate direct or indirect support to non-state armed groups, including, but not limited to, procuring gold from,making payments to, or otherwise helping or equipping non-state armed groups or their affiliates who illegally:a. control mine sites, transportation routes, points where gold is traded and upstream actors in the supply chain; orb. tax or extort money, or gold at mine sites, along transportation routes or at points where gold is traded, or fromintermediaries, export companies or international traders.
7. We will immediately stop engaging with upstream suppliers if we find a reasonable risk that they are sourcing from, or are
linked to, any party providing direct or indirect support to non-state armed groups as described in paragraph 6.
8. Regarding public or private security forces:
We affirm that the role of public or private security forces is to provide security to workers, facilities, equipment andproperty in accordance with the rule of law, including law that guarantees human rights. We will not provide direct orindirect support to public or private security forces that commit abuses described in paragraph 4, or that act illegally as
described in paragraph 6.
9. Regarding bribery and fraudulent misrepresentation of the origin of gold:
We will not offer, promise, give or demand bribes, and will resist the solicitation of bribes, to conceal or disguise the originof gold, or to misrepresent taxes, fees and royalties paid to governments for the purposes of extraction, trade, handling,transport and export of gold.
10. Regarding money laundering:
We will support and contribute to efforts to eliminate money laundering where we identify a reasonable risk resulting
from, or connected to, the extraction, trade, handling, transport or export of gold.
Signed/endorsed:
Date of effect:86

RJC Code of Practices GuidanceAnnex D2.2. Examples of documents and evidence to gather to implement the OECD
Guidance (examples shown are for gold but also apply to silver and PGM)
Requirement

Material
type(s)Entity type

Risk
level

RelevantOECD
step

PurposeAll

All

Step 1,
SectionI (C)• CoC transfer document (if applicable)
To establish a system oftransparency, information• Customs export records
collection and control over the • Assay results
gold supply chain.
• Documentation confirming source/
certification under a recognised mining
standard• Immediate supplier identification documents• Immediate supplier contract and/or purchaseagreement containing description of
secondary material (recycled)• Inventory records and documentation• Invoices and sales documentation• Transport/shipping documentation• Electronic or paper-based reconciliation
records

All
3. Supplier details, including KYC
and due diligence informationconsistent with the 40
Recommendations of the Financial
Action Task Force (FATF).

All

All

Step 1,
SectionI (C)• Business licences
To establish a system oftransparency, information• Business structure and registrationcollection and control over the • Individual identification records
gold supply chain.
• KYC questionnaires• Records of checks against relevant
governmentlists

4. Verifiable documentation for
any cash purchases.

All

All

All

Step 1,
SectionI (C)To avoid cash purchases
where possible, and ensurethat all unavoidable cash
purchases are supported byverifiable documentation.

5. Identify origin of material(for mined material this means
identifying the exact mine oforigin).

All

Miner, refiner All

Step 1,
Section
I (C)• Official country of origin certificate
To establish a system oftransparency, information• Official mine licencescollection and control over the • Contract showing mine namegold supply chain.
• Other documentation showing mine name• Images of items with stamp date (for recycledmaterial)• Records matched to a serial number or mark(for grandfathered material)All
6. Evidence of engagement with
suppliers to encourage applicationof due diligence and capacity
building.

All

All

Step 1,
Section I(D)

To strengthen company
engagement with suppliers.

• Meeting records• Correspondence with suppliers• Written agreements and plans

All
7. Unique internal reference
numbers assigned to all inputs andoutputs, by bar, ingot and/or batchof gold accepted and produced,
and affix and/or imprint thatreference number on all output.

Miner, refiner All

Step 1,
Section II(A–C)

Specific recommendations forminers, recyclers and refiners.

• Paper or electronic records of unique number
assigned to each sale or receipt of material• CoC transfer document (if applicable)

1. Information regarding the form, All
type and physical description ofgold and gold-bearing materials.
2. Information provided by the
supplier regarding the weight
and assay of gold and goldbearing materials of input, anddeterminations of the weight andassay of gold inputs and outputs.
Dates of input and/or output,
purchases and sales and a system
to reconcile all inputs and outputs.

Document/evidence examples(not all required)• Receipts

8. Preliminarily inspect all
shipments for conformity to
the information provided by
the supplier on the types ofgold. Verify weight and quality
information provided by the gold
producer and/or shipper, andmake a business record of suchverification.

All

RefinerAll

Step 1,
Section II(C)Specific recommendations forrefiners.

• Internal assay results• Internal weight verification records

9. Identify upstream gold refiners.

All(refined)

Downstream

All

Step 1,
Section
II (E)

Specific recommendations fordownstream companies.

• Supplier identification documents• CoC transfer document (if applicable)• Refiner marks imprinted on gold material

10. Verify that the refiners haveconducted due diligence in linewith Gold Supplement.

All(refined)

Downstream

All

Step 1,
Section
II (E)

Specific recommendations fordownstream companies.

• Reference to recognised audits• Supplier supply chain policies and risk
assessment documentation

11. Review context of eachlocation.

Mined

Miner

All

Step 2,
SectionI (A)To determine whether thegold producer mines ortransports any gold in a
CAHRA.

• Step 1 documentation• Research reports from governments,
international organisations, NGOs, media• Maps• UN reports• UN security sanctions• Industry literature

RJC Code of Practices Guidance87Requirement

Material
type(s)Entity type

Risk
level

RelevantOECD
step

PurposeDocument/evidence examples(not all required)

12. Identify all mines and/or mine
smelt houses where the gold
producer purchases mined gold
from other sources, which may
include ASM.

Mined

Miner

All

Step 2,
SectionI (B)To determine whether thegold producer purchases
any gold potentially from a
CAHRA.

• Traceability reports• Contracts with suppliers and/or transport
documentation• Mine site declarations or visit reports• KYC documentation(including beneficial ownership)• Supplier policies(conformant with the OECD Guidance)

13. Undertake an in-depth reviewof the context of all red-flag
locations and the due diligencepractices of any red-flag suppliers.

Mined

Miner

High

Step 2,
SectionI (C)To map the factual
circumstances of the gold
producer’s red-flag operations
and other sources of gold,
under way and planned.

• Mine site declarations or visit reports• Incident monitoring reports• Transport documentation/logs• Operating licences• Maps• Mine production records• Geological surveys• Traceability reports• Incident monitoring records• Evidence of official tax and royalty payments,
or payments to government officials• Research reports from governments,
international organisations, NGOs, media• Evidence of payments to public or private
security forces

14. Identify red flags in the gold
supply chain.

All

RefinerAll

Step 2,
SectionII (B)

To determine level of risk inthe supply chain.

• Step 1 documentation• Research reports from governments,
international organisations, NGOs, media• Maps• UN reports• UN security sanctions• Industry literature

15. Undertake an in-depth reviewof the context of all red-flag
locations and the due diligencepractices of any red-flag suppliers.

All

RefinerHigh

Step 2,
Section II(C)

To map the factual
circumstances of thecompany’s red-flag supply
chains, under way andplanned.

• Mine site declarations or visit reports• Incident monitoring reports• Transport documentation/logs• Operating licences• Maps• Mine production records• Geological surveys• Traceability reports• Evidence of official tax and royalty paymentsor payments to government officials• Research reports from governments,
international organisations, NGOs, media• Evidence of payments to public or private
security forces• KYC documentation (including beneficial
ownership where applicable)

16. Get preliminary evidence ofthe refiner’s due diligence to see
whether they have identified, or
reasonably should have identified,
red flags in their supply chain.

All

Downstream

All

Step 2

Specific recommendations fordownstream companies.

• Supplier risk assessment reports• Supplier audit reports

17. Report findings to designatedsenior management.

All

All

High

Step 3

To devise and adopt a strategy
to respond to identified risks.

• Internal meeting records or minutes• Internal reports• Internal correspondence

18. Devise and adopt risk
management plan.

All

All

High

Step 3

To devise and adopt a strategy
to respond to identified risks.

• Documented risk management plan
• Evidence that risk management plan adopted
at senior management level

19. Monitor and track
performance of risk mitigation.

All

All

High

Step 3

To devise and adopt a strategy
to respond to identified risks.

• Meeting records, correspondence with supply
chain actors relating to risk mitigation• Performance reports• Grievance mechanism records• Supply chain incident reports including
evidence of response to these reports• Records of suspension or discontinuation ofcontracts with suppliers

88

RJC Code of Practices Guidance

E Further information
The following international initiatives help embed the OECD Guidance into practice for the gold and silver supply chain:• The World Gold Council’s Conflict-Free Gold Standard(www.gold.org/who-we-are/our-members/responsible-gold/conflict-free-gold-standard) aims to ‘operationalise’ the OECD
Guidance and help gold producers provide assurance that their material does not contribute to conflict.
• The LBMA Responsible Sourcing Guidance (www.lbma.org.uk/guidance-documents) follows the OECD’s five-stepframework to promote due diligence among gold and silver refiners.
• The RMI Responsible Minerals Assurance Process (RMAP) Gold Refiner Standard(www.responsiblemineralsinitiative.org/smelter-introduction/?) provides a specific, practical framework to consistently
audit the supply chain practices and underlying due diligence management systems of gold refiners that is aligned with theOECD Guidance.
• The Dubai Multi Commodities Centre(DMCC) Rules for Risk Based Due Diligence in the Gold and Precious Metals Supply
Chain, or DMCC Rules for RBD-GPM (www.dmcc.ae/gateway-to-trade/commodities/gold/responsible-sourcing), ensurethat all accredited members implement the OECD Guidance; they promote voluntary implementation among other market
participants.
The websites and publications listed below have further information on conflict-affected areas.

Websites:
Geneva Academy
www.geneva-academy.ch
Heidelberg Institute for International Conflict Researchhttps://hiik.de/?lang=en
International Alert
www.international-alert.org
International Crisis Group, Crisis Watch Global Conflict Tracker
www.crisisgroup.org/crisiswatch
OECD, Portal for Supply Chain Risk Informationwww.oecd.org/daf/inv/mne/oecd-portal-for-supply-chain-risk-information.htm
Ropes & Gray, Conflict Minerals Resource Center
https://conflictmineralsresources.com/
UN Peacekeeping, Current Peacekeeping Operations
https://peacekeeping.un.org/en/current-peacekeeping-operationshttp://www.un.org/en/peacekeeping/operations/current.shtml
UN Security Council, Resolutions
www.un.org/securitycouncil/content/resolutions
Uppsala University, Uppsala Conflict Data Program
www.pcr.uu.se/research/UCDP/
U.S. Department of State, Human Rights Reports
www.state.gov/j/drl/rls/hrrpt/
U.S. Securities and Exchange Commission (SEC)
www.sec.gov
World Gold Council, Conflict-Free Gold Standard
www.gold.org/about_gold/sustainability/conflict_free_standard

RJC Code of Practices Guidance89

Publications:International Alert, Human Rights Due Diligence in Conflict-Affected Settings: Guidance for Extractive Industries (2018)www.international-alert.org/publications/human-rights-due-diligence-conflict-affected-settings
OECD, OECD Due Diligence Guidance on the Responsible Supply Chains of Minerals from
Conflict-Affected and High-Risk Areas, Third Edition (2016)www.oecd.org/fr/daf/inv/mne/mining.htm
UN Human Rights, Guiding Principles on Business and Human Rights (2011)www.ohchr.org/Documents/Publications/GuidingPrinciplesBusinessHR_EN.pdf

Other references:
The Code of Risk-Mitigation for ASM Engaging in Formal Trade (CRAFT)
www.responsiblemines.org/en/our-work/standards-and-certification/craft
The Coloured Gemstones Working Group (CGWG)
https://coloured-gems.org
European Union, Study on the Support System for SME Supply Chain Due Diligence
https://publications.europa.eu/en/publication-detail/-/publication/67a2c448-fb38-11e7-b8f5-01aa75ed71a1/language-en/format-PDF/source-67264534
The Impact Facility
http://impactfacility.com

90

RJC Code of Practices Guidance(COP 8) Sourcing directly fromartisanal and small-scale mining
A Definitions and applicability
This provision applies to RJC members and RJC-certified mines that source gold, silver, PGM, diamonds or coloured
gemstones directly from artisanal and small-scale mining (ASM) producers. As part of your audit process, you must explicitly
state whether this provision does, or does not, apply to you. Note that indirect sourcing from ASM producers is captured more
broadly under COP 6 Human rights and COP 7 Due diligence for responsible sourcing from conflict-affected and high-riskareas.
A company’s ability to influence ASM will vary, depending on its economic and social context and the extent and nature of its
commercial relations with ASM producers. COP auditors will take your ability to influence into account when assessing yourbest endeavours.
Artisanal and small-scale mining (ASM) refers to formal or informal operations by individuals, groups, families or cooperatives that can involve up to hundreds of thousands of miners. ASM usually uses little capital and a lot of labour andis carried out with minimal or no mechanisation (although it can involve small and fully mechanised operations). The exact
definition of ‘artisanal’ and ‘small’ mining may be stated by national legislation and categorised according to, for instance, amining organisation’s volume of production of ore or mineral, the size of its concession or the level of mechanisation.
Using best endeavours means acting honestly, reasonably and with a positive effort to perform the relevant obligation. Under
this provision, it means a company’s efforts to reduce or avoid the risks of harmful practices in ASM (including human rights
abuses, unsafe work and environmental harm).
Vulnerable groups are characterised by their higher risk and reduced ability to cope with shock or negative impacts. Theirvulnerability may be based on socio-economic condition, gender, age, disability, ethnicity or other criteria that influencepeople’s ability to access resources and development opportunities. It is always specific to the particular location and time.
Source:• OECD, OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk
Areas—Supplement on Gold, Third Edition (2016)www.oecd.org/fr/daf/inv/mne/mining.htm

B Issue background
ASM is the oldest form of mining; it is found all over the world and its producers are colloquially known by many different
names, including ‘galamsey’, ‘orpailleurs’, ‘ubeshi’, ‘wabeshi’, ‘panners’, ‘diggers’, ‘garimpeiros’, ‘barequeros’, ‘pirquineros’ and‘pocket miners’. In 2017, a report by the Intergovernmental Forum on Mining, Minerals, Metals and Sustainable Development(IGF) and partners estimated that there were 40.5 million people directly engaged in ASM, up from 30 million in 2014 and6 million in 1993.1 These people account for a fifth of the world’s gold supply, and more than three-quarters of the world’s
sapphires (see Figure 8.1). The report’s authors attributed the rapid growth to the rising value of mineral prices and the factthat it is increasingly difficult to earn a living from other rural activities.
The extent of ASM activity in any particular location tends to wax and wane with changing local and national economic
circumstances and international market conditions (for example, the international gold price), as well as economic
circumstances in bordering countries, including differences in export tariffs, which can drive ASM trade from one country
to another. It is most common in commodities that have a high value, are small and easy to transport, and can be easily
traded, such as gold, diamonds and coloured gemstones. It is often found in the same area where professional, formal mining
companies operate, with ASM miners sometimes constituting a major part of the local economy (see COP 35 Artisanal andsmall-scale mining and large-scale mining).

1

IGF, Global Trends in Artisanal and Small-Scale Mining (ASM): A Review of Key Numbers and Issues (2017) Winnipeg: IISD
www.iisd.org/sites/default/files/publications/igf-asm-global-trends.pdf

RJC Code of Practices Guidance

91

20%

80%

20%

ASM Gold

ASM Sapphires

ASM Diamonds

Figure 8.1. Proportion of global supply of gold, sapphires and diamonds produced by ASM
Source: IGF,Global Trends in Artisanal and Small-Scale Mining (ASM): A Review of Key Numbers and Issues (2017)

ASM is increasingly recognised as a potential route out of poverty for disadvantaged families and communities, and features ina growing number of international development agendas. As a production system, ASM enables people to earn a cash income(usually in local currencies), however small, and provides an accessible livelihood for poor and marginalised communities
across the globe. It often complements other livelihood activities, such as agriculture, animal husbandry and hunting, andprovides extra support in times of economic stress.
At the same time, ASM is renowned for harbouring harmful practices, including the use of forced and child labour, sexual
violence, poor health and safety, and major environmental harm, for example from the uncontrolled and irresponsible use of
mercury. It is also known to be exploited by transnational organised crime, local criminals, and corrupt politicians and public
servants, who take advantage of the poverty, marginalisation and lack of protection of the rights of ASM miners to laundermoney or extort income for themselves.2
All companies working in a global economy have a responsibility to consider social and environmental performance in their
supply chains and to respect human rights and apply due diligence.3 This provision focuses on those companies that source
directly from ASM producers, because they are in the best position to assess risks and, as customers, to work directly with their
suppliers to help prevent or remediate harmful practices wherever possible (see Table 8.1 for a summary of key ASM issues).
Those that source directly from ASM are also in the best position to help address one of the pervasive issues that many ASM
producers struggle with: access to fair commercial terms and stable access to market. Companies have a responsibility to try
and understand what fair commercial terms are, communicate them transparently and offer them to ASM producers. Engaging
with ASM in this way can also empower the miners to operate more professionally, so better equipping the sector to seek andreceive fair commercial terms more consistently from others.
Finally, companies sourcing directly from ASM are also uniquely placed to support the development of ASM communities.
As outlined in COP 10 Community development, successful approaches are built on community consultation, regional
co-operation and partnering with others. In situations where a company is not located near the ASM community, the best
opportunities will be through partnerships with local groups, non-governmental organisations (NGOs), governments andothers. As with all community development approaches, those focused on ASM communities need to take into account theneeds and development aspirations of disadvantaged and vulnerable groups in the communities.

92

2

Global Initiative Against Transnational Organized Crime and Levin Sources, Follow the Money: Financial Flows Linked to Artisanal and Small-Scale Gold Mining (2017)https://globalinitiative.net/follow-the-money-financial-flows-linked-to-artisanal-and-small-scale-gold-mining/

3

The OECD outlines the importance of sourcing from ASM and how this fits with a responsible sourcing approach. See: OECD, Responsible Supply Chains in Artisanaland Small-Scale Gold Mining: FAQ (2016) https://mneguidelines.oecd.org/FAQ_Sourcing-Gold-from-ASM-Miners.pdf

RJC Code of Practices GuidanceTable 8.1. Some of the key issues affecting ASM producers4
Issue

Informal or illegal status

Migration

AccessLack of capital

Pricing and distribution

Inefficiency
Environment
Mercury and cyanide
LabourLarge-scale mining
conflict

Description
Most countries lack the legal frameworks and enforcement to regulate ASM effectively, which
is why ASM is largely informal, and sometimes described as ‘illegal’. It is important to distinguishbetween this type of informality or illegality and criminality. Criminal groups or individuals involved
in armed theft, organised crime or money laundering can associate themselves with ASM but they
are not the same as informal ASM producers. The OECD Guidance refers to ‘legitimate ASM’
which specifies that when ASM contributes to conflict and serious abuses it cannot be consideredlegitimate.4
ASM often involves migration: some people are pulled into ASM by a ‘mineral rush’; some arepushed into it by seasonality or economic shocks. A large, uncontrolled influx of migrant ASM
producers can disturb the social fabric of a community, as well as the operations of a mine.
Governments, whether intentionally or not, often give land to large-scale miners without regard
to local active ASM producers. Even where artisanal miners are given legal access to land, it can beinappropriate for ASM practice.
Little or no access to formal, legitimate capital means that ASM producers are typically restricted
to using rudimentary tools and processes provided by middlemen. This can result in debt bondage
and poverty traps and association with illicit financial flows.
ASM is characterised by unregulated, and often unfair pricing and can be linked to illegal
commercialisation routes in which ASM miners do not receive the full price of the mineral. For
example, when selling gold they may not be paid on any silver content within the mineral.
Inefficient mining and processing practices in ASM often lead to suboptimal exploitation of mineral
resources and greater environmental impact as ASM communities are disincentivised fromrehabilitating worked out areas for fear that they will be re-mined.
ASM is notorious for harbouring poor environmental and health and safety practices, which often
result in environmental damage.
In gold processing, the irresponsible and unsafe use of mercury and cyanide in ASM poses a
significant public health threat as well as an environmental one.
Casual labourers make up the bulk of ASM and can include women, children, the elderly andmigrants. These people tend to be the most vulnerable to exploitation.
Where ASM takes place on a large-scale mining concession or permit area, with or without
permission, there is potential for corporate community conflict.

C Key regulations, standards and initiatives
International standards
The obligation to assess and reduce or avoid risks associated with ASM suppliers aligns with many international human rights
instruments, including the UN Guiding Principles on Business and Human Rights, the Universal Declaration of Human Rights,
the International Labour Organization (ILO) conventions on labour rights (see COP 6 Human rights) and the OECD Guidance(see COP 7 Due diligence for responsible sourcing from conflict-affected and high-risk areas).
Organisations such as the Alliance for Responsible Mining (ARM), Fairtrade International (FLO) and the Diamond
Development Initiative International (DDII) set the global standards for responsible ASM practices in gold and diamonds:• ARM runs the Fairmined Standard for Gold from Artisanal and Small-scale Mining, Including Associated Precious Metals,5which includes requirements for organisational and traceability control, environmental protection, labour conditions andsocio-economic development in ASM (through the Fairmined Premium). It also outlines requirements for brands seeking
to make claims using the Fairmined label as a Fairmined licensee. ARM also has the Fairmined Ecological Gold standard,
which includes additional requirements to not use any mercury and cyanide in extraction processes and to adhere to otherenvironmental management best practices such as having a remediation plan.
• Fairtrade runs the Fairtrade Standard for Gold and Associated Precious Metals for Artisanal and Small-Scale Mining,6
which includes a series of requirements aimed at changing the conventional trading system to benefit disadvantaged ASM
producers in developing countries.
• The Diamond Development Initiative has the Maendeleo Diamond Standards,7 which address the mode of production andthe socio-economic context of the diamond ASM sector in Kimberley Process-approved zones.

4

OECD, OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas, Third Edition (2016)www.oecd.org/fr/daf/inv/mne/mining.htm

5

ARM, Fairmined Standard for Gold from Artisanal and Small-scale Mining, Including Associated Precious Metals (2014)www.responsiblemines.org/images/sampledata/EstandarFairmined/Fairmined%20Stnd%202%200_2014_.pdf

6

Fairtrade International,Fairtrade Standard for Gold and Associated Precious Metals for Artisanal and Small-Scale Mining (2013)www.fairgold.org/wp-content/uploads/2014/01/Gold-and-Precious_Metals-Standard.pdf

7

Diamond Development Initiative, Maendeleo Diamond Standards www.ddiglobal.org/mds

RJC Code of Practices Guidance

93

CRAFT
In July 2018, ARM and RESOLVE launched the Code of Risk-mitigation for ASM engaging in Formal Trade (CRAFT),8 which
is an open-source market entry code designed to enable ASM gold producers that conform with the OECD Guidance tosell their product into formal supply chains, and to help downstream actors engage with legitimate ASM producers.
CRAFT is not a certification scheme like Fairmined or Fairtrade, but rather a code of progressive compliance for ASM
producers. It is expected to serve as a tool for empowering these ASM producers in understanding and complying withmarket expectations and due diligence needs. It is up to ASM producers themselves (or a related party) to make a CRAFT
claim that can be verified by other parties such as the first buyer. Downstream companies that want to buy from theseASM producers can use the CRAFT Code for third-party verification if they want to, for example through an RJC-certified
provenance claim (see COP 14 Provenance claims).
Source:• ARM, CRAFT Code (2018) www.craftmines.org
8International initiatives
Beyond these efforts to provide global standards for ASM, a growing number of international initiatives focus on promoting
responsible ASM through multi-stakeholder dialogue, knowledge exchange, research and market-driven mechanisms. Please
see the links for more information.
The Artisanal Gold Council (AGC, www.artisanalgold.org) facilitates the supply of Responsible Artisanal Gold™ to markets.
The World Bank and the OECD are developing an ASM Centre of Excellence that aims to develop a global community ofpractice on ASM and establish a donor-supported ASM information hub.
The Coloured Gemstones Working Group (CGWG) (https://coloured-gems.org) is an alliance between eight luxury jewellery brands
and mining companies that has developed, and is implementing, a set of practical responsible sourcing and due diligence tools. The
tools apply to all tiers of the coloured gemstone supply chain and are customised to the type, size and capacity of the business.
The DELVE database (www.delvedatabase.org) is an initiative led by the World Bank and the NGO Pact to create an online
platform for the growing body of work and implementation experience in supporting and developing responsible ASM.
A five-year programme by the International Institute for Environment and Development (IIED), Dialogues for a sustainable
and productive artisanal and small-scale mining (ASM) sector (www.iied.org/dialogues-for-sustainable-productive-artisanalsmall-scale-mining-asm-sector), provides a forum for multi-stakeholder collaboration and knowledge sharing through locallyowned dialogues to promote better governance, greater voice for ASM, and secure and productive employment across themining sector.
The IGF (www.igfmining.org) brings together 60 governments to consider how to leverage mining, including ASM, forsustainable development. In 2017, it published guidance to help governments develop, implement and monitor an effective
ASM management strategy.9
The Impact Facility for Sustainable Mining Communities (http://impactfacility.com) is a grant and impact investment vehicle
established to enable downstream businesses, social-development foundations and impact investors to support the economic
empowerment of ASM mining communities.
The Just Gold project (https://impacttransform.org/en/work/project/just-gold/), run by the NGO IMPACT, was piloted in thenorth-eastern Democratic Republic of Congo, developing a successful chain of custody from mine site to exporter in May 2017.
The Mercury Free Mining Challenge (www.mercuryfreemining.org) has been established to replace the use of mercury in ASM
mining and is offering a million-dollar prize to the team or individual that discovers an environmentally friendly, affordable
replacement.
The Responsible Artisanal Gold Solutions Forum (RAGS Forum, http://solutions-network.org/site-ragsforum) is a multistakeholder coalition working on the critical barriers to trade for responsible ASM gold from conflict-affected and high-riskareas. Through the forum, pilot studies have been established to assess, design and implement gold supply chains from the
Democratic Republic of Congo all the way through to retailers. The forum is hosted and supported by Solutions for Hope;RESOLVE is the formal facilitator.
The Solidaridad Gold Programme (www.solidaridadnetwork.org) partners with private sector companies from mine tomarket to test innovative approaches for supporting ASM miners to adopt better core mining practices, to meet and exceed
environmental and social standards, and to do business with international buyers and credit providers.

94

8

ARM, CRAFT Code (2018) www.responsiblemines.org/en/our-work/standards-and-certification/craft/

9

IGF,IGF Guidance for Governments: Managing Artisanal and Small-Scale Mining (2017)www.iisd.org/sites/default/files/publications/igf-guidance-for-governments-asm_0.pdf

RJC Code of Practices GuidanceThe Swiss Better Gold Association (SBGA, www.swissbettergold.ch) is a not-for-profit association made up of Swiss gold
supply chain players with the purpose of creating an integrated market-driven mechanism facilitating flow of gold from
responsible ASM operations. The SBGA works with the Swiss State Secretariat for Economic Affairs (SECO) through a public–
private partnership called Better Gold Initiative (BGI), which supports ASM communities to continuously improve their socialand environmental practices.

National law
Some countries with ASM are working to develop regulatory frameworks that are appropriate to the sector, though many do
not yet have ASM-tailored mineral codes or systems. The situation needs to be considered in each country.

D Implementation guidance
COP 8.1A: ASM risk assessment
Members that source gold, silver, PGM, diamonds and/or coloured gemstones directly from artisanal and small-scale
mining (ASM) producers that are not under their control shall:a. Regularly assess risks outlined in COP 7 (Due diligence for responsible sourcing from conflict-affected and high-riskareas) and also risks of unsafe working conditions, uncontrolled mercury use and significant environmental impacts(including impacts to biodiversity), and seek opportunities for ASM community development in line with COP 10(Community development).

Points to consider:• Any company buying directly from ASM suppliers must carry out a risk assessment and due diligence in line with COP 6
Human rights and COP 7 Due diligence for responsible sourcing from conflict-affected and high-risk areas. This mustalso include an assessment of significant environmental risks, including those from uncontrolled mercury use and threats tobiodiversity (see COP 24 Environmental management and COP 38 Biodiversity).
• Use due diligence appropriate to the circumstances to identify potential risks. You can choose to:•do the due diligence yourself, using in-house expertise;•

do it externally, by hiring a suitably qualified professional with local experience; or•partner with an on-the-ground NGO to better understand the risks and opportunities for improvement.

• In all cases, seek to understand the ASM miners’ risk profiles and vulnerabilities, and their priorities for improvements. For
example, use an ASM-specific impact assessment and risk management plan (see COP 34 Impact assessment).
• Include regular site visits to the ASM mine(s) as part of your risk assessment. Look out for telltale signs of potential risks
including, for example, the exclusive use of cash transactions and close proximity to World Heritage Sites, protected areas or
key biodiversity areas.

COP 8.1B: Towards better ASM
b. Use best endeavours to positively influence practices by working to:i. Reduce or avoid risks and provide for, or co-operate in, remedying adverse human rights and environmental impacts.
Measurable risk mitigation should aim to promote significant improvement within a defined period from the adoptionof the risk management plan.
ii. Support development opportunities for ASM communities.
iii. Actively participating in initiatives, including multi-stakeholder ones, that enable the professionalisation, formalisation
and/or certification of ASM, as appropriate to the situation.
iv. Seek to understand fair commercial terms and offer these to all ASM suppliers.

Points to consider:• If you are a mining company buying from ASM suppliers within your area of operation, follow COP 35 Artisanal and smallscale mining and large-scale mining guidance on how to engage and positively influence ASM practices.
• In all cases, if you identify a risk of harmful practices, you need to monitor and remediate these:•

In line with COP 6 Human rights and COP 7 Due diligence for responsible sourcing from conflict-affected and high-riskareas, that includes disengaging from the ASM supplier if you find evidence of any serious abuses, such as forced labour, worst
forms of child labour, gross human rights violations, war crimes and direct or indirect support to non-state armed groups.

RJC Code of Practices Guidance95

•To uphold the Minamata Convention on Mercury, it also means making strong efforts to help phase out the worst practices
in mercury use. These include whole ore amalgamation; open burning of amalgam or processed amalgam; burning ofamalgam in residential areas; and cyanide leaching in sediment, ore or tailings to which mercury has been added but notremoved (see COP 41 Mercury for more information).

• Options for remediation may include (by you or by partnering with experts):• training, technical assistance and advice, for example on how to improve workers’ health and safety or how to reduce theenvironmental impacts of using mercury; and• local capacity building to leverage the positive socio-economic impact of ASM activity on communities by, for example,
supporting community health and educational projects to improve awareness and understanding of forced and child labour
issues.
•Whatever action you take to remediate risks, continue to monitor site conditions and practices regularly, including
through site visits.

•

Note that sourcing from ASM producers that adhere to recognised standards (such as Fairmined or Fairtrade) or working
with other initiatives (for example, using the CRAFT Code) will make it significantly easier and cheaper to assess and,
where applicable, remediate identified risks.

Beyond remediation• ASM offers an important potential route out of poverty for disadvantaged families and communities; and beyond
remediation, you should also assess opportunities to support the development of ASM communities, aligning with any
national or international development agendas where possible.
• Use your best endeavours to maximise benefits as part of your community development programme, and in any impact
assessment or risk mitigation planning (see COP 10 Community development and COP 34 Impact assessment).
• As part of your risk assessment, you should have already confirmed whether your direct ASM suppliers are operating legally.
If they are not, use your best endeavours to help them access legal mining rights through formalisation, for example by:•helping ASM producers to register independently, assuming they meet the requirements of local law and that law isappropriate to the ASM sector; and•engaging an independent third party, for instance a non-profit organisation, expert or lawyer, to help the ASM producers
understand the formalisation process. This can build credibility, increase buy-in and reduce misunderstandings in the future.

• See box ‘Inclusive initiatives’ under COP 35 Artisanal and small-scale mining and large-scale mining for more examples of
how to help formalise ASM producers.
• In all cases, make sure you provide fair commercial terms for ASM (see box ‘Fair commercial terms’).
• Where appropriate, support capacity building that empowers ASM miners to seek and receive fair commercial terms in
all their transactions with all their counterparties. If you engage with multiple ASM sources in different countries, you canpromote knowledge exchange across ASM communities to help share and spread best practices.

Fair commercial terms
The importance of fair commercial terms for ASM suppliers cannot be underestimated. You must seek to understandwhat these are, using practical and available market tools (for example, the international price of gold). For diamonds andcoloured gemstones this can be challenging given the variable characteristics (and therefore price) of every stone, and theexistence of multiple grading and appraisal systems.
Providing fair commercial terms for ASM suppliers includes due consideration of options to support cash flow and reduce
market uncertainty, for example:• guarantee a certain volume of purchase (or offtake);• provide upfront financing (prepayment); or• guarantee an agreed frequency of payments.

Check:■■Can you show the auditor how you have assessed the risks associated with your direct ASM suppliers of gold, silver,
PGM, diamonds and/or coloured gemstones?

■■Can you show the auditor the approaches you have taken to reduce or avoid these risks and to support development
opportunities?

■■Can you show the auditor how you have developed, implemented and assessed the effectiveness of your remediationplans (where applicable)?

96

RJC Code of Practices Guidance

E Further information
Websites
Alliance for Responsible Mining (ARM)
www.responsiblemines.org
ARM, CRAFT Codewww.craftmines.org
Artisanal Gold Council (AGC)
www.artisanalgold.org/home
The Artisanal and Small-Scale Mining Knowledge Sharing Archive (this includes the online resources previously available
through the Communities and Small-Scale Mining (CASM) initiative)
www.artisanalmining.org
Coloured Gemstones Working Group (CGWG)
https://coloured-gems.org
DELVE databasewww.delvedatabase.org
Diamond Development Initiative (DDI)
www.ddiglobal.org/artisanal-mining/issues
IIED, Dialogues for a Sustainable and Productive Artisanal and Small-Scale Mining (ASM) Sector
www.iied.org/dialogues-for-sustainable-productive-artisanal-small-scale-mining-asm-sector
The Impact Facility
http://impactfacility.com
Mercury Free Mining Challenge
www.mercuryfreemining.org
Responsible Artisanal Gold Solutions Forum (RAGS Forum)
http://solutions-network.org/site-ragsforum
Solidaridad Gold Programmewww.solidaridadnetwork.org/supply-chains/gold
Swiss Better Gold Association (SBGA)
www.swissbettergold.ch

Publications
IGF, Global Trends in Artisanal And Small-Scale Mining (ASM): A Review of Key Numbers and Issues (2017)www.iisd.org/sites/default/files/publications/igf-asm-global-trends.pdf
IIED, ASM–LSM¬–Government Relations (2015)
http://pubs.iied.org/pdfs/G03938.pdf
Levin Sources and GITOC, Follow the Money: A Handbook for Identifying Financial Flows Linked to Artisanal and Small-Scale
Mining (2017)www.levinsources.com/publications/giff-mapping-iffs-in-asgm
OECD, OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk
Areas—Supplement on Gold, Third Edition (2016)www.oecd.org/fr/daf/inv/mne/mining.htm
OECD, Responsible Supply Chains in Artisanal and Small-Scale Gold Mining: FAQ (2016)www.oecd.org/daf/inv/investment-policy/FAQ_Sourcing-Gold-from-ASM-Miners.pdf
Solidaridad and ARM, Addressing Forced Labor: A Practitioner’s Toolkit (2014https://www.solidaridadnetwork.org/publications/addressing-forced-labor-a-practitioners-toolkit
World Bank, Gender Dimensions of Artisanal and Small-Scale Mining: A Rapid Assessment Toolkit (2012)https://commdev.org/userfiles/Gender_and_ASM_Toolkit.pdf

RJC Code of Practices Guidance

97

(COP 9) Sourcing post-consumer
industrial precious metals directlyfrom informal recyclers
A Definitions and applicability
This provision applies to RJC members that source gold, silver or PGM directly from informal recyclers outside their control.
As part of your audit process, you must explicitly state whether this provision does, or does not, apply to you. Note thatindirect sourcing from informal recyclers is captured more broadly under COP 6 Human rights and COP 7 Due diligence forresponsible sourcing from conflict-affected and high-risk areas.
A company’s ability to influence informal recyclers will vary, depending on its economic and social context and the extent andnature of its commercial relations with recyclers. RJC auditors will take your ability to influence into account when assessing
your best endeavours.
Using best endeavours means acting honestly, reasonably and with a positive effort to perform the relevant obligation. Under
this provision, it means a company’s efforts to reduce or avoid risks of harmful practices among informal recyclers (including
human rights abuses, unsafe work and environmental harm).
Informal recycling refers to the collection, aggregation and manual processing of end-of-life scrap to extract recyclable
materials. Unlike the formal recycling sector, informal recycling is largely unmechanised and instead relies on manual, labourintensive techniques.
Waste electrical and electronic equipment (WEEE), also known as e-waste, is end-of-life electronic and electrical equipment.
It includes household appliances, IT and telecommunications equipment, and a range of other electronic and electricalconsumer goods.

B Issue background
Across the world in low- and middle-income countries, the urban poor are increasingly turning to informal recycling to earna living. This includes a broad spectrum of activities, from collecting, aggregating and dismantling scrap to recovering specificvaluable materials such as gold, silver, platinum and palladium. The practice is closely linked to the huge growth in waste
electrical and electronic equipment (WEEE), also known as e-waste. Every year, large volumes of e-waste are exported tolow- and middle-income countries such as China, Ghana and India, where weaker waste management practices have led to a
thriving informal recycling economy. Exporting e-waste in this way is illegal under the UN Basel Convention; but it happens
anyway, largely because scrap recycling and disposal is so much more expensive in high-income countries.
Much like artisanal and small-scale mining (ASM), informal recycling offers an essential livelihood option for many people thatwould otherwise struggle to make ends meet. But, like ASM, it has also been linked to a range of social, environmental andpublic health threats.
E-waste can contain many hazardous substances (such as lead, mercury, biphenyls, diphenyl ethers, brominated flame
retardants and other coolants). Informal recyclers often operate outside of environmental and labour regulations; and theyrarely have access to the tools or safety equipment they need to safely recycle e-waste. That means they are much more likely
to expose themselves, others and the environment to hazardous chemicals and other potential toxins compared with theircounterparts in the formal sector. For example, recovering gold from printed circuit boards (PCBs) often involves bathing the
PCBs in open acid baths to release the gold; the spent acid is then disposed of, often onto open land where it is eventuallyabsorbed by ground and surface water.
Most work in the informal recycling sector is labour intensive, marked by long working hours and low earnings. Individuals at
the bottom of the value chain are particularly vulnerable to exploitative labour practices, including forced and child labour.

98

RJC Code of Practices GuidanceC Key regulations, standards and initiatives
International regulations
The Basel Convention on the Control of Transboundary Movements of Hazardous Wastes and their Disposal1 wasadopted in 1989, in response to a public outcry following the discovery of large deposits of imported toxic wastes in low- andmiddle-income countries. The convention, which has been ratified by 186 countries, is designed to reduce the movementsof hazardous waste between nations, particularly transfers of waste from high-income countries to low- and middle-income
countries. Since 2002, the Basel Convention has developed projects, provisions and technical guidelines to specifically address
e-waste, for example preventing illegal traffic to low- and middle-income countries, adopting the Nairobi Declaration on
environmentally sound management of e-waste and building capacity in these countries to better monitor and manage e-waste
through initiatives like E-Waste Africa.2
The European WEEE Directive3 makes the manufacturers or distributors of electrical and electronic equipment responsiblefor its disposal. This piece of EU legislation, which first came into force in 2003, aims to prevent or reduce the negativeenvironmental effects that come from generating and managing e-waste, and to promote safe reuse and recycling.

International initiatives
The Basel Action Network (BAN www.ban.org) is a US-based non-governmental organisation (NGO) whose mission is tochampion global environmental health and justice. With a focus on e-waste, BAN uses a mix of advocacy, stewardship andpublic engagement to create systemic change in policy and practice. In accordance with the Basel Convention, the network
aims to ensure that e-waste is recycled responsibly, rather than exported to low- and middle-income countries.
Silicon Valley Toxics Coalition (http://svtc.org/) uses a combination of research, advocacy and grassroots organising topromote human health and environmental justice in response to the rapid growth of the high-tech industry. The organisation
undertakes various activities to tackle e-waste, including a joint project with Chintan Environmental Research and Action
Group to help improve the working conditions of informal sector electronics dismantlers in India.
Toxics Link (www.toxicslink.org) is an environmental NGO based in India dedicated to improving understanding at all levels
about the sources and dangers of environmental contamination. The organisation works with other national and internationalgroups to help bring practical experience on the ground to the fore, and lead to a more meaningful articulation of issues. It
actively campaigns for the safe management of e-waste in India through research and awareness-building exercises. It played akey part in pushing the national government to create a separate rule on e-waste, which came into force in May 2012.
Through its Children’s Environmental Health Unit, the World Health Organization (WHO) is working with partners to identify
the main sources and potential health risks of e-waste exposures and define successful interventions.4 WHO has also recently
launched the E-Waste and Child Health Initiative aimed at protecting children and their families from detrimental healthconsequences associated with e-waste.

National law
Enforcing and monitoring safe e-waste disposal principally relies on national legislation, which varies widely across countries.
RJC members are expected to identify, understand and comply with applicable law in all countries where they operate.

1

The Basel Convention www.basel.int/TheConvention/Overview/tabid/1271/Default.aspx

2

The Basel Convention, E-Waste Africa www.basel.int/Implementation/Ewaste/eWasteactivitiesinAfrica/EwasteinAfrica/Overview/tabid/2546/Default.aspx

3European Commission, Waste Electrical and Electronic Equipment (WEEE) http://ec.europa.eu/environment/waste/weee/index_en.htm

4WHO, Children’s Environmental Health: E-Waste www.who.int/ceh/risks/ewaste/en/

RJC Code of Practices Guidance99

D Implementation guidance
COP 9.1: Sourcing from informal recyclers
Members that source gold, silver and/or PGM directly from informal recyclers that are not under their control shall:a. Regularly assess risks outlined in COP 7 (Due diligence for responsible sourcing from conflict-affected and high-riskareas) and risks of unsafe working conditions, exposure to toxic chemicals and metals, and other significant environmental
impacts; and seek opportunities for the development of informal recycling communities in line with COP 10 (Community
development).
b. Use best endeavours to positively influence practices by working to:i. Reduce or avoid risks and provide for or co-operate in remedying adverse human rights and environmental impacts.
Measurable risk mitigation should aim to promote significant improvement within a defined period from the adoption of
the risk management plan.
ii. Support development opportunities for informal recycling communities.

Points to consider:• This provision focuses on industrial precious metals recycled from e-waste, since this type of post-consumer scrap is mostclosely associated with the social, environmental and public health risks described above.
• As a first step, confirm that the informal recyclers you source from are operating legally. If they are not, use your best
endeavours to help legalise them. The difference between a formal and an informal recycling operation is often simply
that the former has the right licences and permits while the latter does not. In some cases, informal recycling operators
may already be working in an environmentally and socially responsible way but obtaining the necessary permits may posesignificant challenges (because of, for example, financial and literacy barriers). Work with your direct suppliers, and where
necessary provide support, to help them meet the necessary legal requirements.
• Use due diligence appropriate to your circumstances to identify potential risks of harmful practices among your informal
recycling suppliers.
•

Note that you can choose to do the due diligence yourself, using in-house expertise; or do it externally, by hiring a suitably
qualified professional with local experience. Either way, make sure you include a site visit to the recycling facility/area.

• If you identify a risk of harmful practices, you need to monitor and mitigate these, in line with COP 6 Human rights and COP
7 Due diligence for responsible sourcing from conflict-affected and high-risk areas. That includes disengaging from theinformal recycling supplier in cases where you find the most severe harmful practices, such as forced labour or worst formsof child labour.
• Your options for mitigation include:•

providing training, technical assistance and advice, for example on how to improve working conditions or how to use moreenvironmentally friendly recycling processes and techniques;•building local capacity by, for example, supporting community health and educational projects to improve awareness andunderstanding of forced and child labour issues; and•offering financial incentives, where appropriate, to encourage and facilitate improvements to site conditions andpractices.

• Whatever action you take to mitigate risks and impacts, continue to monitor site/facility conditions and practices regularly.
• If it is not possible to effectively mitigate negative impacts from informal recycling operations, think about how you could
help integrate your informal suppliers into the formal recycling sector. This might include categorising processes by risk
and ensuring that high-risk end processes (for example, those that use toxic chemicals and incineration) are only doneby formal suppliers while lower-risk activities (for example, collecting, aggregating and basic dismantling) are done by
informal recyclers. Such approaches to formal–informal integration should be carried out in ways that do not undermine or
disadvantage workers in the informal recycling sector.
• The informal recycling sector plays an important potential route out of poverty for disadvantaged families and communities.
You should also assess opportunities to support the development of those involved in the sector, aligning with any national
or international development agendas where possible.
• Look for, and get involved with, local or national initiatives working to tackle issues within the informal recycling sector inyour supply chain.

100 RJC Code of Practices GuidanceIntegrating informal–formal e-waste recycling in India: some examples
Indo-German-Swiss e-waste initiative (Bangalore). Launched in 2004, the aims of this project were to establish a separate
e-waste channel for the city, from collection through to processing and disposal. It set up an e-waste disposal code of
conduct for Bangalore’s IT companies designed to exclude informal practices, and created a process to register, train andrelocate informal workers to industrial zones.
Toxics Link (Kolkata). This Indian research NGO developed a range of largely theoretical models that promote formal–
informal linkages based on good practice elsewhere. It advocates for and pilots training and capacity building to protect
livelihoods, aiming to include existing operational networks of informal collectors in the ‘clean channels’.
HRA E-waste Pvt Ltd (Delhi). This company collects, segregates and stores e-waste from some 250 informal collectors
and dismantlers, who source directly from households and businesses. It auctions the e-waste to formal recyclers, giving
profits back to the informal collectors, less a percentage for overhead costs.
Source:• International Institute for Environment and Development (IIED), Innovations for Inclusivity in India’s Informal E-waste
Markets (2014) http://pubs.iied.org/pdfs/17266IIED.pdf

Check:■■Can you show the auditor how you have assessed the risks associated with your direct informal suppliers of recycled
gold, silver and/or PGM?

■■Can you show the auditor the approaches you have taken to reduce or avoid these risks and to support development
opportunities?

■■Can you show the auditor how you have developed, implemented and assessed the effectiveness of your remediationplans (where applicable)?

E Further information
Websites:
Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ), Environmentally Sound Disposal and Recycling of E-waste in
Ghana (E-Waste project)www.giz.de/en/worldwide/63039.html
WHO, Children’s Environmental Health: Electronic Waste
www.who.int/ceh/risks/ewaste/en/

Publications:
IIED, Clean and Inclusive? Recycling E-Waste in China and India (2016)
http://pubs.iied.org/pdfs/16611IIED.pdf
IIED, Innovations for Inclusivity in India’s Informal E-Waste Markets (2014)
http://pubs.iied.org/pdfs/17266IIED.pdf
United Nations University, Global E-Waste Monitor 2017 (2017)https://collections.unu.edu/eserv/UNU:6341/Global-E-waste_Monitor_2017__electronic_single_pages_.pdf

RJC Code of Practices Guidance 101

(COP 10) Community development
A Definitions and applicability
This provision applies to all members.
A community is a group of people that share the same geographical space or have a common interest that brings them
together. Community members generally share some beliefs and values. For the purposes of this guidance, a community is anygroup of people that may experience positive or negative effects from an RJC member’s operations.
Community development is a way of working, underpinned by a commitment to equity, social justice, participation andempowerment, that enables people to identify common concerns and that supports them in taking action related to them.
The mining lifecycle is the series of phases over the course of a mining project going from exploration, feasibility studies andconstruction through production to mine closure, rehabilitation and post-closure.
Stakeholder and community engagement is a two-way process of information sharing and decision-making that aims tosimultaneously address community issues and priorities (including the needs of disadvantaged and vulnerable groups), as
well as the concerns and needs of the business. It is carried out in a manner that is inclusive and culturally sensitive: beyond
listening, the aim of engagement is to ensure mutual understanding and responsiveness by all parties to enable them to discussand manage matters with the potential to affect all concerned. Successful engagement requires a robust framework for regular
discussion, consultation and interaction.
Vulnerable groups are characterised by their higher risk and reduced ability to cope with shock or negative impacts. Theirvulnerability may be based on socio-economic condition, gender, age, disability, ethnicity or other criteria that influencepeople’s ability to access resources and development opportunities. It is always specific to the particular location and time.
Sources:• Harvard University Graduate School of Design, Zofnass Program for Sustainable Infrastructure: Glossary (2016)
https://research.gsd.harvard.edu/zofnass/glossary/• International Council on Mining and Metals (ICMM), Community Development Toolkit (2012)www.icmm.com/website/publications/pdfs/social-and-economic-development/4080.pdf

B Issue background
Community development is a process designed to create conditions of economic and social progress for the whole community,with its active participation and fullest possible reliance upon its own initiative. Done well, a company’s initiatives to support
community development can also be good for business by improving workforce recruitment and retention, enhancing brandreputation and boosting employee loyalty.
The way companies contribute to community development varies markedly across different settings (for example, acrosslow- or high-income settings, rural or urban ones) and also depends on the type, size and corporate culture of a company.
All companies have a duty to support community development as part of their corporate social responsibility, but mining
companies in particular can make a significant contribution to local, regional and even national development (see box ‘Mining
for community development’). Every company’s approach should be determined by local conditions, available resources,
partners (particularly government and civil society organisations) and, most importantly, the community’s self-determinedneeds and priorities.
Successful approaches to community development are based on community consultation, regional co-operation andpartnership, and they are framed by local community priorities, national development goals and existing programmes ofwork. They might include, for example, working with government agencies, non-governmental organisations (NGOs) or localgroups to strengthen existing long-term programmes for education, health, gender equality, environment, health and safety,
economic development and cultural activities. Companies should always keep an eye on the long term and work to ensure thesustainability of any community development they support. They should also avoid filling roles that are the responsibility of
governments or other local institutions, but instead focus on leveraging opportunities related to their own core business.
In practice, this may include:• creating local employment opportunities through training, employment and staff retention;• supporting local procurement by investing in local financial institutions and enterprise development programmes);• promoting educational opportunities by liaising with local and regional educational centres; and• training local community members in environmental monitoring and natural resource management.

102 RJC Code of Practices GuidanceIn all cases, meaningful community development takes an inclusive approach, considering the priorities of all parts of acommunity and paying particular attention to the needs and participation of disadvantaged and vulnerable groups—for
example, creating opportunities for women to participate more meaningfully in decision-making, or investing in children’ssafety, education and health.

Mining for community development
The existence of a mine and its associated community development programmes can play a significant, perhaps dominant,part in local, regional or even national development.
Mining companies have been known to support community development in diverse ways, including through procurement,
capacity building, skills development and infrastructure development. There are also examples of mining projects setting
up community development funds governed through multi-stakeholder processes to support development projects overthe full mining lifecycle.
To realise the full potential of mining for community development, companies need a rigorous approach to stakeholder
engagement and community development planning and design that includes, among other things:• baseline data collection, monitoring and regular evaluation of socio-economic impacts, and working with development
partners and local community members as appropriate;• skills and capacity building for community participation and ability to take up programme opportunities during the life ofan operation; and• multi-stakeholder planning and capacity development for post-mining livelihoods

C Key regulations, standards and initiatives
International initiatives
The 2030 Sustainable Development Goals (SDGs, https://sustainabledevelopment.un.org/sdgs) are a key driver of ongoingnational development planning. They also provide an important framework for community development planning. It may
be governments that have committed to the SDGs, but the private sector has a critical role in driving the transformationalchanges needed to achieve them, so it is important that companies consider how best to align their community development
priorities with the SDGs and monitor progress (see COP 2 Policy and implementation for more information on embedding theSDGs into organisational goals and policies).

National law
Voluntary community development is increasingly included in agreements between mining companies and communities and/or
governments. In some cases, governments are incorporating community development requirements into law. South Africa, forexample, requires companies to submit a social and labour plan as part of their application for mining rights. RJC members are
expected to be aware of applicable law related to community development, both for new and expanding projects.

D Implementation guidance
COP 10.1: Community development
Members shall seek to support the social, economic and institutional development of the communities in which they
operate and support community initiatives.

Points to consider:• Look to community development as an opportunity to work in partnership with others. A strategic approach can serve toalign company objectives with existing and future local or regional development plans and the SDGs.
• Your first step should be to do a stakeholder mapping exercise to identify those parts of the community that are interested inand affected by company activities. Be sure to include disadvantaged and vulnerable groups and those that may be underrepresented in the main community groups.

RJC Code of Practices Guidance 103• Outline and document the aims of your community initiatives, the key principles to be followed and the expectations of staff
and other stakeholders.
• Mining companies need to make sure to support the social, economic and institutional development of communities over thefull mining lifecycle.
• Involve communities as much as possible. All community members, including disadvantaged and vulnerable groups, should
be enabled to participate in decisions about what projects will do and how they will work.
• Be responsive to community priorities, needs and interests in identifying self-sustaining programmes. Make sure you havesufficient resources and the right kind of expertise to develop and support initiatives that can endure over the long term.
This includes drawing on appropriate community development expertise to understand and address local, regional andnational contexts.
• Note that community development initiatives are not the same as livelihood replacement schemes, which are implemented
to address physical or economic displacement or other direct project impact mitigation measures. The two should, however,be aligned so that they can be mutually reinforcing.
• Working in formal or informal partnerships can reduce duplication, costs and dependency on your mining operation. Private,
government, non-government and community organisations all bring different skills and resources to collaborative efforts.
• Monitor your community development initiatives and periodically evaluate them against selected indicators, including the
SDGs. Regular monitoring and evaluation will allow you to adjust your programmes to ensure continuous improvement andsustainability.
• Including community members in participatory monitoring processes is a useful way to enhance feedback and facilitates thecommunication of progress to the wider community. Additional communication of progress and challenges, through internaland external reporting of results, can encourage a broader support base for programmes.

Check:■■Have you identified priority stakeholders in the affected community?
■■Are community members involved in the design and delivery of your community initiatives?
■■What initiatives have you done to support the development of affected communities?
■■How will they have a beneficial impact and how will this be evaluated?
■■Is your company compliant with community development mandated by national law?

E Further information
Websites:
International Finance Corporation (IFC), CommDevProgram
www.commdev.org
Sustainable Development Goals
https://sustainabledevelopment.un.org/sdgs
World Bank, Community Driven Developmentwww.worldbank.org/en/topic/communitydrivendevelopment

Publications:
Australian Government, Community Engagement and Development (2006)
www.csrm.uq.edu.au/Research/CommunityEngagementandDevelopment.aspx
ICMM, Community Development Toolkit (2012)www.icmm.com/website/publications/pdfs/social-and-economic-development/4080.pdf
ICMM, Mining Partnerships for Development Toolkit (2011)www.icmm.com/mpd
UNICEF, Child Rights and Mining Toolkit (2017)https://www.unicef.org/csr/files/FINAL_Child_Rights_and_Mining_Toolkit_060217.pdf
World Bank, Mining Community Development Agreements Source Book (2012)
http://siteresources.worldbank.org/INTOGMC/Resources/mining_community.pdf

104 RJC Code of Practices Guidance(COP 11) Bribery and facilitation
payments
A Definitions and applicability
This provision applies to all RJC members.
Bribery means giving or offering (as well as demanding or receiving) any undue advantage to (or from):• a public or government official (politically exposed persons);• a political candidate, party or official; or• any private sector employees, directors or officers, or their agents or representatives.
Corruption is any unlawful or improper behaviour that seeks to gain a private advantage through illegitimate means. Any kindof bribery is a form of corruption; but corruption also includes abuse of power, extortion, fraud, deception, collusion, cartels,embezzlement and money laundering.
Employees include both directly employed workers that have contracts with the RJC member and indirectly employed workers
that regularly work at members’ sites and that have employment contracts with a third party, such as a labour agent, labour
provider or contractor/subcontractor.
Facilitation payments are sums of money paid to get preferential treatment for something the receiver is otherwise stillrequired to do—for example, paying an official to speed up, or ‘facilitate’, an authorisation process.
Source:• UK Bribery Act (2010) www.thebriberyact2010.co.uk/what-is-a-bribe.asp

B Issue backgroundA few decades ago, bribes were a tax-deductible business expense in many countries. Today, bribery is a criminal offencein nearly all nations, regardless of whether the bribery took place at home or overseas. The change comes from a growing
recognition of the detrimental effects of bribery and corruption. In the early 1990s, the first international initiatives started
raising awareness of the prevalence of corruption and of the many ways in which it hinders economic development, corrodes
the fabric of society and distorts national and international trade. Since then, the discourse on bribery and corruption has
expanded to acknowledge their role in undermining environmental and labour standards, access to human rights and the ruleof law.
Bribes come in all shapes and sizes, including money, gifts in kind, hospitality, expenses, advantage or even just a verbal
commitment to influence the outcome of an action or vote. They can be given or received, promised or expected. Bribes thatare given are known as ‘active bribery’ and bribes received are ‘passive bribery’: in most situations both can lead to a criminal
charge. Another crime related to (and often confused with) bribery is extortion. The difference is that bribery offers a positive
reward (‘do this for me and I’ll do something for you’), while extortion threatens violence or some other negative outcome (‘dothis for me or I’ll hurt you in some way’).
While bribery is widely condemned by people all over the world, facilitation payments have a more mixed response. In
countries where wages are low, or where gift giving is intrinsic to relationships, the use of small, unofficial payments to ‘speed’up action are widely accepted as part of daily life. In some countries, they are even legal. But the line between facilitation
payments and bribes is blurry and it is often difficult to distinguish between the two. That is why in most countries they aretreated as the same thing and why they are banned by most anti-corruption initiatives and laws.
Bribery and corruption can be a big problem for business. For a start, they make business more expensive: the UN Global
Compact estimates that they add 10 per cent or more to the costs of doing business in some parts of the world.1 And insome sectors, they have eroded reputations and investor confidence through repeated ethics scandals. A general consensus
is emerging that corruption and bribery damage company integrity, degrade the business environment and do not createcompetitive advantage. Businesses are increasingly taking a strong stand against corruption.

1

UN Global Compact, Engaging on Anti-Bribery and Corruption www.unpri.org/download?ac=1826

RJC Code of Practices Guidance 105

C Key regulations, standards and initiatives
International standards
The OECD Anti-Bribery Convention2 (www.oecd.org/corruption/oecdantibriberyconvention.htm), signed in 1997, was thefirst international mechanism to tackle corruption in cross-border business deals. It has since been ratified by all 36 OECD
countries and 8 non-member countries. National governments and businesses have used the convention to improve legislation
and raise standards: bribing a foreign official is now a criminal offence in all signatory countries.
In 2003, the UN Convention against Corruption (UN CAC, www.unodc.org/unodc/en/corruption/uncac.html) became thefirst legally binding international anti-corruption instrument. More than 185 countries have signed the convention, which
covers many different types of corruption (including bribery) and sets out requirements for anti-corruption measures in five
key areas: prevention, law enforcement, international co-operation, asset recovery, and technical assistance and informationexchange.
The UN CAC also paved the way for the 10th principle of the UN Global Compact (www.unglobalcompact.org) on anticorruption, which commits its members not only to avoid bribery and corruption, but also to proactively develop policies andprogrammes to address corruption within their operations and supply chains.
Transparency International (www.transparency.org) is a non-governmental organisation working against corruption, witha presence in more than 100 countries. In 2003, it published Business Principles for Countering Bribery3 as a framework forcompanies to develop and implement comprehensive anti-bribery programmes. Last updated in 2013, the principles set out
best practice for countering bribery and cover a range of topics, from what to include in internal anti-bribery policies andpractices to how to deal with business partners and the supply chain. The principles describe elements required to implement
an anti-bribery programme, and are intended for use by companies of all sizes (see Figure 11.1).

&
1 Organisation
responsibilities&
6 Communication
reporting2

Businessrelationships

7

Internal controls &record keeping

3

Human
resources

8

Monitoring &review

4

Trainingwith
9 Cooperation
authorities

5

Raising concerns &seeking guidance

10

Independent
assurance

Figure 11.1. Ten elements required to implement an effective anti-bribery programme
Source: Transparency International,Business Principles for Countering Bribery (2013)
www.transparency.org/whatwedo/tools/business_principles_for_countering_bribery/1

2

OECD, OECD Convention on Combating Bribery of Foreign Public Officials in International Business Transactions (1997)
www.oecd.org/corruption/oecdantibriberyconvention.htm

3Transparency International, Business Principles for Countering Bribery (2013) www.transparency.org/whatwedo/tools/business_principles_for_countering_bribery/1

106 RJC Code of Practices GuidanceNational law
In most jurisdictions, any form of bribery is illegal, including facilitation payments. There are, however, some countries where
facilitation payments are customary and may even be legal. All RJC members are expected to be fully informed of all relevant
legislation and regulations in every jurisdiction where they operate.

Anti-bribery laws old and newSome countries have had anti-bribery laws in place for decades. Others have only recently developed legislation against
bribery. Different laws define different expectations of companies, and they all vary in scope. A few key examples are
summarised below.

UK Bribery Act 2010
In 2010, the United Kingdom enacted its UK Bribery Act to enhance existing legislation and better address requirementsof the 1997 OECD Anti-Bribery Convention. It is now among the strictest legislation on bribery anywhere in the world.
The Act, which entered into force in 2011, has important implications for companies registered, or doing business, in the
United Kingdom. It creates four prime offences:• two general offences for giving or receiving a bribe;• a separate offence for bribing a foreign public official; and• a new offence for corporate failure to prevent a bribe. In this case, an organisation will have a complete defence if it canshow that it has ‘adequate procedures’ in place to prevent bribery (where adequate procedures are understood to mean
procedures based on six principles set out in the UK Bribery Act 2010 official guidance).

US Foreign Corrupt Practices Act (FCPA) of 1977
The FCPA, amended in 1998, is the most widely enforced anti-corruption law. It was the first to introduce corporate
liability, responsibility for third parties and extraterritoriality for corruption offences, meaning that companies andindividuals can be held criminally and civilly responsible for corruption committed abroad. The FCPA was specificallyenacted to make it unlawful for certain types of people and entities to pay foreign government officials for help in gettingor retaining business. It makes a narrow exception for facilitation payments that are specifically made to foreign officials to‘expedite or secure … routine governmental action’.

India’s Prevention of Corruption Act (PCA)
The PCA was enacted in 1988 to prevent corruption in public offices, with limited success. Two decades later, after yearsof deliberations, an amendment to the Act hopes to further improve on this. The PCA (Amendment) Act came into force
on 26 July 2018 and seeks to bring the Indian anti-corruption legal framework in line with the UN CAC and international
best practice. The amended Act includes new provisions for companies doing business in India and makes the bribery of
public servants by companies an offence (although, like the UK Bribery Act 2010, it provides for a defence based on having‘adequate procedures’ in place).

D Implementation guidance
COP 11.1: Policy and procedures
Members shall establish policy/policies and procedures that:a. Prohibit bribery in all business practices and transactions carried out by themselves and by agents acting on their behalf.
b. Protect employees from any penalty or adverse consequences for identifying in good faith concerns related to suspected
bribery, refusing to participate in bribery or refusing to pay a facilitation payment where facilitation payments areprohibited, even if this action may result in the enterprise losing business.
c. Set the criteria and approval procedures for employees to follow when offering and/or accepting gifts to or from third
parties.

RJC Code of Practices Guidance 107

Points to consider:• Put a senior manager in charge of running your anti-corruption programme. This includes being aware of applicable law,
including the extraterritorial reach of legislation if relevant. If uncertain, seek advice from qualified legal advisors.
• Make sure your anti-corruption programme is built on formal policies and procedures that are written down and endorsed at
the highest level of your business. These policies and procedures should:•

explicitly meet provisions 11.1a–c above;•

also cover political donations, charitable (and similar or equivalent) contributions and sponsorships;•

include clear, practical criteria and instructions for recording, approving and accepting third-party gifts, including
hospitality and entertainment (use your judgement to set acceptable thresholds for these gifts, in the context of local
customary practice versus risk of corruption);•be communicated to all employees, agents, contractors and anybody else who may act on your behalf; and•be referenced in appropriate contract documents.

• Use these policies and procedures as a foundation for establishing awareness of corruption issues and risks and embedding
an anti-corruption culture in the organisation.
• Make sure there is a named contact person or office to provide advice and receive complaints or concerns about compliancewith your anti-corruption policies and procedures.
• Review your anti-corruption policies and procedures at least once a year to make sure they are up to date and still reflect thelatest applicable law.

COP 11.2: Risk management
Members shall have systems in place to manage bribery risk in their organisation. The systems shall include:a. identification and monitoring of those parts of their business that pose high risks of participation in bribery.
b. Training of relevant managers and employees on policies and procedures.
c. Recording of relevant gifts to and from third parties in a gift register, as per the member’s policy.
d. A whistleblowing or other mechanism for employees or stakeholders to raise concerns.
e. Investigation of any incidences of suspected bribery within their organisation.
f. Sanctions for bribery and attempted bribery.

Points to consider:• Bribery risk varies across different business types and geographical locations, but they often involve people with the power
to influence transactions or business relationships with third parties, including government entities (and entities in which
public officials have interests).
• Do a risk assessment to identify those parts of your business that are exposed to bribery risk:•

Consider getting expert help, especially if you have a complex business operating in multiple locations.

•

The RJC hosts a risk assessment toolkit that includes a general risk assessment template you might find useful, particularly
if you are a small business. Alternatively, use your own tried and tested risk assessment process.

• Your risk assessment should cover all types of bribery risk relevant to your business and local context; it should also
distinguish between different parts of the business according to their level of risk so that anti-corruption programmes,
controls, training and monitoring can concentrate on areas of greatest risk.
• Establish a documented anti-corruption programme based on the policies and procedures developed under COP 11.1 and,starting with the areas of greatest risk, work to mitigate all identified bribery risks. Use a range of tactics, appropriate to yourbusiness’s circumstances, including:•training for all employees, agents and contractors;•

formal approval procedures that avoid concentration of authority with individuals;•

enhanced oversight of higher-risk transactions;•documented selection criteria supported by due diligence for hiring new agents and contractors;•

appropriate anti-corruption compliance provisions embedded in contract documents; and•the recording of any instances of attempted bribery and their investigation.

108 RJC Code of Practices Guidance• Create a third-party gift register, either as a stand-alone system or as part of a broader payment system. Record all gifts
given, received and accepted using the criteria set under COP 11.1:•

Gifts include major charitable contributions, sponsorships, community payments and any significant hospitality expenses
that are offered in commercial circumstances with bribery risks.

• To help you spot incidents of bribery when they occur and ensure compliance with your anti-corruption policies andprocedures:•

Establish a whistle-blowing or other suitable mechanism for employees and others to anonymously report bribery andcorruption concerns.

•

Monitor the risk of bribery using methods appropriate to your business’s circumstances. These may include, for example,
financial analyses, interviews and approval ‘tests’.

•Get competent personnel who are free of conflict of interest to periodically review compliance with your anti-corruption
policies and procedures.

•

Establish sanctions for non-compliance, communicate these to all employees, agents and contractors, and implement themfor all confirmed cases of bribery or attempted bribery.

COP 11.3: Facilitation payments
Where facilitation payments are allowed by applicable law, members shall:a. Act to eliminate all facilitation payments or to reduce the size and frequency of facilitation payments over time.
b. Ensure that any facilitation payments are of limited nature and scope.
c. Implement controls to monitor, oversee and fully account for any facilitation payments made by them or made on theirbehalf.

Points to consider:• Make sure you know the applicable law on facilitation payments.
• If these payments are not permitted under applicable law, make sure they are addressed by provisions COP 11.1 and COP
11.2.
• If they are permitted by law, make sure that:•your anti-corruption policy and procedures provide clear and practical guidance on acceptable and unacceptablefacilitation payments;•

all facilitation payments are approved by a responsible manager; and•all facilitation payments are fully accounted for and recorded, for example in a register.

• Consider informing external parties who receive facilitation payments about your policies limiting their nature and scope.
• Monitor the implications and consequences of facilitation payments, with a view to identifying those that could be reduced
or eliminated.

Check:■■Do you know the applicable law regarding bribery and facilitation payments?
■■Have you established an anti-bribery policy and communicated it to employees and agents?
■■Can you show the auditor your systems for managing bribery risk, such as a risk assessment, training, a gift register, awhistle-blowing mechanism, and procedures for investigation and sanctions?

■■Do you have appropriate controls over facilitation payments, where permitted by law, and if you make them, with theintent to reduce and eliminate them over time?

RJC Code of Practices Guidance 109

E Further information
Websites:
The [UK] BriberyAct 2010www.thebriberyact2010.co.uk
Publish What You Pay
www.publishwhatyoupay.org
Transparency International, Adequate Procedures Guidance
www.transparency.org.uk/our-work/business-integrity/bribery-act/adequate-procedures-guidanceTransparency International, The [UK] Bribery Act
www.transparency.org.uk/our-work/bribery-act
Transparency International, Global Anti-Bribery Guidance
www.antibriberyguidance.org
UN Global Compact, Anti-corruption
www.unglobalcompact.org/AboutTheGC/TheTenPrinciples/anti-corruption.html
UN Office on Drugs and Crime (UNODC), UNODC’s Action Against Corruption and Economic Crime
www.unodc.org/unodc/en/corruption/index.html
US Department of Justice, Foreign Corrupt Practices Act
www.justice.gov/criminal-fraud/foreign-corrupt-practices-act
World Economic Forum, Partnering Against Corruption Initiative
www.weforum.org/communities/partnering-against-corruption-initiative

Publications
KPMG, The Prevention of Corruption (Amendment) Act, 2018: Key Highlights (2018)https://assets.kpmg.com/content/dam/kpmg/in/pdf/2018/09/prevention-corruption-amendment-anti-bribery-fcpa.pdf
OECD, OECD Convention on Combating Bribery of Foreign Public Officials in International Business Transactions (1997)
www.oecd.org/document/21/0,3343,en_2649_34859_2017813_1_1_1_1,00.html

110 RJC Code of Practices Guidance(COP 12) Know Your Counterparty(KYC): Money laundering and financeof terrorism
A Definitions and applicability
This provision applies to all facilities.
Beneficial owner is the person(s) who owns or controls a counterparty and/or the person on whose behalf a transaction is
being done. It also incorporates those persons who exercise ultimate effective control over a legal person or arrangement.
A counterparty is any supplier or customer of gold, silver, PGM, diamonds, coloured gemstones or jewellery products
containing these materials with whom you do business.
The financing of terrorism is any kind of financial support to those who attempt to encourage, plan or engage in terrorism. The
meaning of terrorism is not universally accepted due to significant political, religious and national implications that differ fromcountry to country.
Illegitimate sources of material go against applicable law. They include all sources involved in illegal mining1 and gold or money
laundering, as well as all sources used to fund conflict, terrorism or crime.
Know Your Counterparty (KYC) principles, established to combat money laundering and finance of terrorism, requirebusinesses to identify every organisation that they deal with, to understand the legitimacy of their business relationships and,within reason, to identify and react to unusual or suspicious transaction patterns.
Money laundering is the process of disguising the financial proceeds of crime to conceal their illegal origin.
A politically exposed person is someone who is or has been entrusted with a prominent public function. Their status andinfluence puts many of these people in positions that can be potentially abused to commit money laundering and related
predicate offences, including corruption and bribery, as well as activities related to terrorist financing.
Sources:• Financial Action Task Force (FATF), FATF Guidance on the Risk-Based Approach for Dealers in Precious Metals and Stones (2008)
www.fatf-gafi.org/publications/fatfrecommendations/documents/fatfguidanceontherisk-basedapproachfordealersinprecio
usmetalsandstones.html• World Bank, Reference Guide to Anti-Money Laundering and Combating the Financing of Terrorism (2006)
http://siteresources.worldbank.org/EXTAML/Resources/396511-1146581427871/Reference_Guide_
AMLCFT_2ndSupplement.pdf

B Issue background‘Money laundering’ describes a multitude of practices designed to hide illegal or ‘dirty’ money. The profits from criminal
activities—such as illegal arms sales, drug trafficking, prostitution, fraud, insider trading, theft or tax evasion—are put througha succession of transfers and deals until the illegal source of the funds is obscured and the money appears to be legitimate or‘clean’ (see Figure 12.1).

1This does not include legitimate but informal artisanal and small-scale miners. See COP 8 Sourcing directly from artisanal and small-scale mining.

RJC Code of Practices Guidance 111

Money laundering
Placement

Layering

Integration

Illegal proﬁts are broken up into
relatively small amounts andintroduced to the ﬁnancial system,
often deposited as cash, chequesor money orders into manydifferent scattered bank accounts.

The illegal funds are moved
around to distance them fromtheir original source. They may
be channeled throughinvestments, or wired acrossinternational bank accounts.

The illegal funds re-enter thelegitimate economy. They may bemixed with legitimate proceeds incompany accounts; or used to buy
and sell high-value goods, such as
jewellery, cars or antiques.

Terrorism ﬁnancing
Can also include
legitimate
funding sources.

Funds are distributed in the
opposite direction: out of thelegitimate economy towards
criminal organisations,rather than vice versa

Figure 12.1. The three stages of money laundering (and terrorism financing)
The very nature of precious metals, diamonds, coloured stones and jewellery makes them attractive to criminal organisations
looking to legitimise assets: they have intrinsic value, are easily smuggled and can be bought and sold anywhere in the world.
That makes dealers in these high-value goods, including various parts of the jewellery supply chain, vulnerable to activities
such as money laundering and terrorism financing—particularly if controls are too weak to stop anonymous trading.
In addition to legal compliance requirements, KYC policies and procedures are therefore a critical part of a company’s due
diligence in assessing, mitigating and reporting risks in the supply chain. They are key in ensuring companies avoid illegitimate
sources of material and potentially criminal activities.
An effective KYC programme covers both suppliers and customers (and, where required by local law, end consumers). Under
the RJC COP Standard, such a programme must enable you to identify every organisation that you deal with, to understandyour business relationships and to spot and react to unusual or suspicious transactions.

C Key regulations, standards and initiatives
International standards
In 1989, at its summit in Paris, the G7 established the Financial Action Task Force (FATF) on money laundering to co-ordinate
an international response to money laundering. In 2001, the FATF mission was expanded to include reducing or eliminating thefinancing of terrorism.
The FATF Recommendations2 (updated in October2018) sets out the measures that national governments should take toimplement programmes for preventing, detecting and suppressing both money laundering and terrorist financing, as well asother types of financial crime.

2

FATF, The FATF Recommendations (2012–2018) www.fatf-gafi.org/publications/fatfrecommendations/documents/fatf-recommendations.html

112 RJC Code of Practices GuidanceThe FATF has also issued guidance on using a risk-based approach to combat money laundering and terrorist financing,designed specifically for dealers in precious metal and stones.

National and international law
Most countries have strict legislation and regulations to prevent money laundering, which is a criminal activity. You mustensure you are aware of the local anti-money laundering (AML) laws and regulations in every jurisdiction in which you operate.
Dealing in high-value goods, such as precious metals, stones or jewels, often triggers regulatory requirements to implement
internal transaction monitoring and controls.

D Implementation guidance
COP 12.1: Know your counterparty policy and procedures
Members shall document and apply a Know Your Counterparty (KYC) policy and procedures for business partners thatare suppliers and customers of gold, silver, PGM, diamonds, coloured gemstones or jewellery products containing thesematerials. The policy and procedures shall:a. Establish the identity of the counterparty by checking government-issued identification. Where triggered by a risk
assessment or applicable law, establish the beneficial ownership and principals of the counterparty.
b. Verify that the counterparty and, if applicable, their beneficial owners are not named on relevant government lists forindividuals or organisations implicated in money laundering, fraud or involvement with prohibited organisations and/or
those financing conflict.
c. Maintain an understanding of the nature and legitimacy of their business.
d. Monitor transactions for unusual or suspicious activity and report suspicions of money laundering or finance of terrorism
to the relevant authority as applicable.
e. Maintain adequate records for either five years minimum or as long as required by national legislation, whichever is longer.
A robust set of documented KYC procedures should support activities in four areas: verifying identities, identifying high-riskcounterparties, checking records and monitoring for suspicious transactions (see Figure 12.2).

Verify identities, understandthe business

Gather and regularly review KYC data
Keep all records
Gain awareness of your counterparty

Identify high-riskcounterparties

Check FATF high-risk jurisdictions
Use red flags to screen new counterparties
Monitor all transactions

KYC
procedures

Check lists for individuals suspected ofmoney laundering, terrorism ﬁnancing or
politically exposed persons

Monitor and reportsuspicious activity

Check watchlists and sanctions lists
Use free and commercial tools to help
you follow legal requirements
Follow legal requirements
Use on-site visits for high-risk suppliers
Develop procedures to spot and reportsuspicious activity to proper authorities

Figure 12.2. Four areas of documented procedures that underpin a robust KYC programme

RJC Code of Practices Guidance 113

Points to consider:• KYC procedures should enable you to identify all the suppliers and customers of gold, silver, PGM, diamonds, coloured
gemstones or jewellery products containing these materials that you do business with (that is, your counterparties),
including their beneficial owners where triggered by a risk assessment or applicable law. That means ensuring that you
gather, review and keep records and information to verify the counterparty’s identity, including, for example:•

Name of counterparty (company/organisation/individual).

•

Registered address.

•

Business address.

•

Contact person and information.

•

Date and country of incorporation.

•

Business registration number.

•

Names of parent company and subsidiaries.

•

Description of core business activity (including sources of materials).

•

Beneficial owners (subject to risk level).

•

Shareholders.

•

Board of directors.

•

Management structure.

•

Government, military or political affiliations.

•

Financial information.

•

Copies of relevant policies (that is, KYC policy, supply chain policy).

• Make sure you use government-issued documents (for example, personal identity documents for individuals, and businesslicences, company registration or tax ID number for companies) to confirm the identity of your counterparties.
• Counterparties do not include end consumers unless this is required by law within the jurisdictions in which you operate.

How can small businesses get information from very large companies?
Smaller companies may be concerned about asking big clients to provide a copy of their beneficial owner’s identity
documents. If your counterparty is a company, a copy of its business licence will suffice. You only need to seek thebeneficial owner’s identification:
1. If your KYC measures uncover a specific need to identify the beneficial owner (for example, because you spot unusualtransactions or find that the counterparty operates in a FATF high-risk jurisdiction or is on the sanctions list).
2. If the identity of the beneficial owner is required by law. In this case, check if there are any exemptions for listedcompanies, and if not, ask your counterparty for identity documents.
Note that the identity information you need about your counterparty may be publicly available through, for example,
its registration under a regulatory programme or industry association that verifies its members. This includes membersof foreign stock exchanges that belong to the World Federation of Diamond Bourses, companies listed on the officiallyregistered Belgian diamond companies website, and members of the London Bullion Market Association or the American
Gem Trade Association.
Relevant information may also be available through sector-specific initiatives that support KYC. For example, the Antwerp
World Diamond Centre and the Federal Public Service Economy co-host an online database of registered diamondcompanies in Belgium that allows businesses to identify their counterparties(www.registereddiamondcompanies.be).
In India, the Gem and Jewellery Export Promotion Council has a similar database called MyKYCBank that allows
companies to store their KYC information and share it with selected trading partners, banks and other financial
intermediaries. The database is currently limited to companies based in Belgium and India but may be expanded to include
other countries (www.mykycbank.com).
Source:• FATF, RBA Guidance for Dealers in Precious Metal and Stones (2008)
www.fatf-gafi.org/media/fatf/documents/reports/RBA%20for%20Dealers%20in%20Precious%20Metal%20and%20Stones.pdf• Develop and maintain an understanding of your counterparty, including the nature of their business, their finances and theirsources of materials.

114 RJC Code of Practices Guidance• Identify high-risk counterparties using sources such as the FATF list of high-risk and non-cooperative jurisdictions,3 andestablish their beneficial owners and principals.
• Identifying high-risk counterparties can help you understand your vulnerability to involvement in money laundering or
terrorism financing. Establish high-risk indicators or ‘red flags’ to screen new customers or suppliers before you first do
business with them, and then continue to monitor your transactions. If you identify a counterparty as high risk, follow yourdue diligence supply chain policy (see COP 7 Due diligence for responsible sourcing from conflict-affected and high-riskareas) and consider either applying mitigation measures or ending your relationship. Higher-risk counterparties include
those with any of the following characteristics (see the FATF guidance4 for more information):•

Limited knowledge of the industry.

•

Requests for unusual financial terms and conditions.

•

Lack of established place of business, or offices in an unusual location or high-risk jurisdiction.

•

Proposals for a transaction that makes no sense.

•

Use of unusual or distant banks.

•

Use of non-bank financial institutions for no apparent legitimate business purpose.

•

Frequent and unexplained changes in bank accounts or accounting personnel.

•

Use of companies without any apparent legitimate fiscal, legal or commercial reason.

•

Unusually complex organisational structure.

•

Offices located in higher-risk jurisdictions.

•

Involvement of third parties in transactions. (Where this is the case, make sure there is a legitimate reason for the third
party’s involvement, identify the third party and establish the relationship between them and your counterparty.)•

Refusal to identify beneficial owners or controlling interests in cases where this would be commercially expected.

•

Attempted anonymity by conducting ordinary business through accountants, lawyers or other intermediaries.

•

Use of cash in a non-standard manner.

•

Involvement of politically exposed persons.

• Make sure that your counterparty (and, if applicable, its beneficial owners) is not named on a relevant governmentsponsored watchlist or sanctions list, including lists in both your and your counterparty’s countries of operation, as well as
any other lists you deem relevant. Good references include:•

The Jewelers Vigilance Committee www.jvclegal.org•

The Responsible Minerals Initiative www.responsiblemineralsinitiative.org•

The US Office of Foreign Assets Control’s Specially Designated Nationals and Blocked Persons List
www.treasury.gov/resource-center/sanctions/Pages/default.aspx•

Commercial software programs for checking multiple sanction lists at once.

• If you find a counterparty listed on a watchlist or sanctions list, abide by the law; where applicable, discontinue yourrelationship and submit a suspicious activity report.
• Once you know the identity and level of risk of your counterparties, it is important to gain and maintain an awareness of theirbusiness. This means verifying that the organisation actually does what it says it does: use on-site inspections to confirm thisfor high-risk suppliers.
• Develop monitoring procedures to spot unusual or suspicious transactions. Consider:•nurturing contacts with relevant law enforcement agencies;•

hiring third-party service providers to verify company information and credit reports, and to help screen names against
sanctions lists; and•documenting your results as part of your overall risk management strategy.

• Establish procedures to properly report suspicious activity to the appropriate authorities.
•

Note that if you identify a risk of money laundering or terrorism financing, it is not your responsibility to determine thetype or purpose of the criminal activity at hand. But you are responsible for reporting the risk to the proper authorities.

3

FATF, High-Risk and Other Monitored Jurisdictions
www.fatf-gafi.org/publications/high-riskandnon-cooperativejurisdictions/more/more-on-high-risk-and-non-cooperative-jurisdictions.html?hf=10&b=0&s=desc(fatf_
releasedate)4

FATF, Risk-Based Approach www.fatf-gafi.org/documents/riskbasedapproach

RJC Code of Practices Guidance 115

COP 12.2: KYC responsibility
Members shall nominate an individual to be responsible for implementing the KYC policy and procedures.

Points to consider:• Make sure that your KYC policy and procedures are overseen by a suitably qualified and experienced individual with:•expertise in your industry, and strong awareness of key counterparties; and•good knowledge of money laundering techniques, including how they might be used in your industry’s transactions andareas of operation.

• Large or high-risk businesses should establish a formal AML and counter-terrorism financing programme that is under
the authority of a designated manager and, where appropriate, integrated with other business compliance and security
programmes.
• Consider hiring an independent qualified auditor to regularly review and test your KYC programme.

COP 12.3: KYC review
Members’ KYC policy and procedures shall be up to date and appropriate, and shall include training, documentation
procedures and regular reviews.

Points to consider:• Review your KYC policy and procedures regularly—at least once a year.
• If you find gaps in your KYC data, document and monitor any corrective actions taken to make sure that your KYC
programme remains robust and effective.
• Depending on the size of your company, make sure you train relevant employees on KYC and related compliance procedures,
including risk indicators.

COP 12.4: KYC cash records
Members shall maintain records of all single or apparently linked cash or cash-like transactions equal to or above
10,000 euros/US dollars or the threshold defined by applicable law (whichever is lower). Where required by law,members shall report such transactions to the relevant designated authority.

Points to consider:• In most cases, national law will define what makes a transaction or activity ‘suspicious’, and under what circumstances youneed to report it to a competent authority.
• Make sure you are aware of the applicable law, and associated thresholds for reporting, in all jurisdictions that you operate
in. If you carry out international transactions, you need to be aware of, and comply with, the applicable law for all relevant
jurisdictions.
• If there is no applicable law on money laundering, you must monitor and maintain records of all cash transactions equal to or
above 10,000 euros/US dollars where the transaction is carried out in a single operation or in several operations that appear
to be linked. (This is in line with many legal frameworks, including the European Union Fourth Anti-Money Laundering
Directive.)5• Don’t forget that you must use the defined financial threshold under applicable law if it is lower than 10,000 euros/US
dollars.
• In all cases, establish procedures to automatically trigger a reporting requirement when the thresholds are exceeded.

5

European Union, Directive (EU) 2015/849 on the prevention of the use of the financial system for the purposes of money laundering or terrorist financing(Fourth Anti-Money Laundering Directive) (2015) https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:32015L0849

116 RJC Code of Practices GuidanceQ&A: Know Your Counterparty
1. Does our conformance rating rest on how our system and procedures work or achievement of 100 per centdata?
The COP requires members to establish the identity of all customers and suppliers, and where triggered by a risk
assessment or applicable law, the beneficial ownership and principals of the supplier or customer. This does not necessarilymean ‘100 per cent data’ at all times as collecting and maintaining relevant data is an ongoing process. Auditors shouldtake into consideration the extent and nature of any missing information, the reasons why the information is missing andwhether it demonstrates weaknesses in your management systems.
There could be a reasonable, practical explanation for why certain identity information is missing or out of date: because
your counterparty has moved offices, because your business relationship is inactive or because of a minor clerical error.
If, however, basic identity information is frequently missing from your records or if an active counterparty with missing
information cannot be contacted or located, you are likely to be in a situation of non-conformance.
You auditor should understand that gathering information about beneficial owners may not be as straightforward as
acquiring basic identity information. For example, if your risk assessment suggests you should get information about
beneficial ownership but it is not legally required, your counterparty may not co-operate. Similarly, if you have a new
counterparty, or one that has just changed ownership, you may well need to chase the information. If, however, you are
missing information that is legally required and cannot show that you are actively trying to get it (particularly if it is missing
for several counterparties), then you are likely to be in a situation of non-conformance.

2. Is there a list of financial reporting thresholds by country?
The FATF Recommendations drive most countries’ financial reporting legislation, with more than 190 jurisdictionscommitted to the recommendations through membership of the FATF or equivalent regional bodies.
While the FATF does not keep a list of reporting thresholds by country, you can find information on these thresholds in the
FATF’smutual valuation reports that assess individual countries’ compliance with the FATF Recommendations.
See www.fatf-gafi.org/topics/mutualevaluations.

Check:■■Have you got a documented KYC policy and procedures for business partners?
■■Have you carried out a risk assessment of these business partners to identify vulnerability to involvement in money
laundering or the finance of terrorism?

■■For high-risk suppliers and customers, or where required by regulation, have you established beneficial ownership andprincipals?

■■Can you show the auditor how you monitor transactions for unusual or suspicious activity, against a general knowledgeof the nature of their business?

■■Do you have procedures for reporting suspicious transactions to the relevant designated authorities?

RJC Code of Practices Guidance 117

E Further information
Websites:Basel Committee on Banking Supervisionwww.bis.org/bcbs/index.htm
Financial Action Task Force (FATF)
www.fatf-gafi.org
FATF, Mutual Evaluations, by country
www.fatf-gafi.org/topics/mutualevaluations
International Money Laundering Information Network (IMoLIN)
www.imolin.org/imolin/index.html[US] Jeweler’s Vigilance Committee
www.jvclegal.org
Registered [Belgian] Diamond Companies
www.registereddiamondcompanies.be
UN Office on Drugs and Crime (UNODC), UNODC on Money-Laundering and Countering the Financing of Terrorism
www.unodc.org/unodc/en/money-laundering/index.html

Publications:
FATF, International Standards on Combating Money Laundering and the Financing of Terrorism and Proliferation: FATF
Recommendations (2012, updated 2016)www.fatf-gafi.org/media/fatf/documents/recommendations/pdfs/FATF_Recommendations.pdf
FATF, RBA Guidance for Dealers in Precious Metals and Stones (2008)
www.fatf-gafi.org/media/fatf/documents/reports/RBA%20for%20Dealers%20in%20Precious%20Metal%20and%20Stones.pdf
World Bank Group, Reference Guide to Anti-Money Laundering and Combating the Financing of Terrorism (2006)
http://siteresources.worldbank.org/EXTAML/Resources/396511-1146581427871/Reference_Guide_AMLCFT_2ndSupplement.pdf

118 RJC Code of Practices Guidance(COP 13) Security
A Definitions and applicability
This provision applies to all RJC members that handle jewellery products, use security guards and/or engage public or
private security providers; provision 13.3 only applies to RJC members in the mining sector.
Employees include both directly employed workers that have contracts with the RJC member and indirectly employed workers
that regularly work at members’ sites and that have employment contracts with a third party, such as a labour agent, labour
provider or contractor/subcontractor.
Vulnerable groups are characterised by their higher risk and reduced ability to cope with shock or negative impacts. Theirvulnerability may be based on socio-economic condition, gender, age, disability, ethnicity or other criteria that influencepeople’s ability to access resources and development opportunities. It is always specific to the particular location and time.
Sources:• International Council on Mining and Metals (ICMM) Community Development Toolkit (2012)https://www.icmm.com/website/publications/pdfs/social-and-economic-development/4080.pdf• RJC

B Issue background
Individuals, communities, businesses and governments alike all need to feel safe and secure in their day-to-day work. At alllevels of the jewellery supply chain, where high-value precious stones and metals are known to be a target for criminals, therisks to personal safety and property require responsible security measures.
This may include the use of security personnel, both public and private (see box ‘Private and public security’). In both cases,
these personnel’s primary role is to protect the company’s people, property, product and reputation from security threats,
which can emanate from criminal groups, local communities, company employees, illegal artisanal miners and migrant workers.
They include things like:• general theft;• fraud;• violent disturbances;• sabotage of infrastructure;• illegal mining (that is, armed entry to a mine to steal ore, which is not the same as artisanal and small-scale mining as
described in COP 8 Sourcing directly from artisanal and small-scale mining);• organised theft (of ore, company product, fuel or other commodities); and• kidnapping, intimidation or assassination of staff.
While companies have a legitimate responsibility to staff and shareholders to protect people and property, working withsecurity personnel can, in some circumstances, pose further risks that need to be managed. For example, there are many
documented cases where security personnel (both public and private) have been implicated in serious human rights abuses,
pursued corrupt policies or practices, resorted to inappropriate use of force or firearms, or otherwise created conflict.
Disadvantaged and vulnerable groups may be at greater risk of abuse; all companies need to factor this into their security
strategy. Under the COP, RJC members with mining facilities must align this strategy with the principles outlined in the
Voluntary Principles on Security and Human Rights (see below).
Ongoing social unrest and conflict at a regional or national level can add complexity to a company’s security strategy ascompany personnel, assets or strategic facilities can all be the target for violent action in these situations.

RJC Code of Practices Guidance 119

Private and public security
Many companies employ private contractors to provide their security. In these cases, companies have a duty to ensurethat these contractors work in ways that protect and promote human rights, for example by embedding acceptablepolicies and procedures into contracts and maintaining clear oversight over all security activities.
In some cases, mining operations rely on public security providers (the police or military) to protect their people andproperty. In return, companies may be required or expected to contribute to the costs. The potential for corruption,
conflict and political violence is no less when using public compared with private security. Indeed, while public security
is expected to uphold local, national and international humanitarian law, abuses can and have been known to occur. In
repressive societies, public security organisations can have a particularly troubled history.
In all cases, companies that rely on public security must be vigilant to the risks of human rights abuses, and do what they
can to ensure public security personnel maintain a respect for human rights.

C Key regulations, standards and initiatives
International initiatives
The Voluntary Principles on Security and Human Rights (VPs, www.voluntaryprinciples.org) serve to guide extractive
companies in providing security for their operations in a way that respects human rights. Established through a multistakeholder initiative of governments, companies and non-governmental organisations, the principles are aligned with the UN
Guiding Principles on Business and Human Rights.1 They provide afour-point framework for companies to identify and manage risk when engaging public and private security providers thatcomprises:• human rights risk assessment;• appropriate engagement with security providers and local communities;• human rights screening and training for security forces; and• systems for reporting and investigating allegations of human rights abuses.
The International Code of Conduct Association (ICoCA, www.icoca.ch) promotes the responsible provision of private security
services and respect for human rights. ICoCA has three interrelated core functions:• certification of member companies to ensure their systems and policies meet the wide range of standards and principlesthat
make up the code;• monitoring of company compliance; and• handling of complaints on alleged violations of the code.
Specifically, the code includes rules for the use of force, prohibition of torture, sexual violence, human trafficking and childlabour. It also sets out a series of management and governance principles on, for example, the selection, vetting and proper
training of security personnel.

National law
Most countries have legislation and regulation regarding the appropriate role of security and military forces in society. In manynational and state jurisdictions, individuals must be trained and have a licence before they can carry weapons such as firearms,
batons or pepper sprays. Police or military certification may be required for certain security duties.

1

UN Human Rights, Guiding Principles on Business and Human Rights (2011) www.ohchr.org/Documents/Publications/GuidingPrinciplesBusinessHR_EN.pdf

120 RJC Code of Practices GuidanceD Implementation guidance
COP 13.1: Security measures
Members shall assess security risks and establish measures that protect employees, contractors, visitors and personnel
employed by relevant business partners against product theft, damage or substitution of products within the premises
and during events, exhibitions and shipments.

Points to consider:• Make a senior management function responsible for managing security, which should be considered for directly andindirectly employed workers and anyone else that comes to your premises, as well as for all those involved in (or whose
security is potentially affected by) your business activities outside the premises (for example, during transport or at eventsor exhibitions).
• Establish processes that can identify structural and emergent security threats and address them at various levels througheffective security management and, where relevant, community engagement. This could include, for example, developing:•security policies and procedures that clearly prioritise the protection of people over product;•

training for employees on relevant security policies and procedures;•internal control procedures to rapidly detect theft, should it occur;•

appropriate arrangements for security during shipment, and for protection of security personnel involved intransportation;•

relationships with local law enforcement agencies, where appropriate; and•regular consultation with host governments and local communities about the impact of security, where appropriate.

• Always protect and strictly control sensitive security-related documents. Note that even though your auditors may not be
granted access to the specifics of your security measures, they can still use interviews and observation to determine whether
your security measures are appropriate.

COP 13.2: Security personnel
Members shall ensure that all security personnel respect the human rights and dignity of all people and use force only
when strictly necessary and the minimum proportionate to the threat.

Points to consider:• Develop a written policy or agreement on the conduct of security personnel that:•emphasises the need to respect human rights;•

sets the boundaries for security activities;•

outlines appropriate procedures for managing security issues and conflicts; and•states the consequences of any human rights abuses.

• Make arrangements for monitoring performance against the policy, and for carrying out investigations and disciplinary
actions.
• Certain situations and activities may require that security personnel be armed, and this may be determined by the security
provider in accordance with their own risk assessments. If this is the case, make sure that any armed personnel areproperly
trained and licensed in accordance with applicable law.
• All these requirements also apply to any security that you outsource to a third party. Before using any third-party security
provider, as part of your due diligence, assess their ability to operate within your defined policy. In all cases, incorporate yoursecurity policy into contractual agreements with third-party security providers.

RJC Code of Practices Guidance 121

COP 13.3: Voluntary principles on security and human rights
Members with mining facilities shall ensure that their security approaches are consistent with the Voluntary Principles
on Security and Human Rights. In particular, members shall:a. Carry out a risk assessment to evaluate security risks and the potential for human rights abuses.
b. Contract or otherwise engage with public and private security in a way that helps protect human rights.

Points to consider:• A risk assessment is critical and, in line with the VPs,2 should consider:•

the full range of security risks (including political, economic, civil, social and environmental where applicable);•the potential for violence;•

the human rights records of public security forces, paramilitaries, local and national law enforcement, as well as the
reputation of private security;•

the rule of law and local capacity to protect, respect and remedy human rights;•

the root causes of conflict and level of adherence to human rights (using a conflict analysis); and•the risk of human rights abuses related to equipment transfers, where appropriate.

• Where appropriate, your risk assessment should also include security risks relating to interactions with artisanal and smallscale mining, which are often marred by conflict (see COP 35 Artisanal and small-scale mining and large-scale mining).

Security and vulnerable groups
Any security risk assessment must consider the particular risks facing disadvantaged and vulnerable groups. This includes
assessing the potential impact that putting security measures in place might have on these groups. Security personnel can
encounter disadvantaged and vulnerable groups in various ways: as employee’s family members or community members,
and as victims, perpetrators or witnesses of alleged crimes on company property.
When developing security strategies and measures, take particular care to protect the rights of children who, because of
their young age and physical weakness, are at a greater risk of abuse, intimidation and harassment. Children should never
be used by security providers for any tasks, including food procurement, logistics, administration or espionage.
• Use the VPs as a guide to any interactions you may have with public security (either formally or informally). Communicate
your security policy and position to host governments and local communities and use your influence to promote the VPs.
•

Note that in some situations, it may be appropriate and possible for you to seek a commitment to the VPs in formal
agreements with governments.

• Likewise, use the VPs to guide your interactions with private security providers. Make sure you include requirements foradequate and effective training of personnel on human rights in all contracts with private security providers. These should
also include your policies regarding appropriate conduct and the local use of force.
•

Where relevant, make sure that security personnel training covers acceptable conduct when interacting with artisanal andsmall-scale miners and with local communities generally. (Other project personnel interacting with these miners, such ascommunity liaison, resettlement and livelihood replacement staff, should also receive appropriate training in the VPs.)• Keep records on training delivered to all security personnel.

COP 13.4: International code of conduct for private security
Members whose business is to provide private security services to the jewellery supply chain shall be certified
members of the International Code of Conduct Association (ICoCA).

2

The Voluntary Principles on Security and Human Rights http://docs.wixstatic.com/ugd/f623ce_60604aa96d1c4bdcbb633916da951f25.pdf

122 RJC Code of Practices GuidancePoints to consider:• If you are a private security provider, you must become a certified member of the ICoC and commit to adhering to the
obligations and requirements of the code. This includes committing to get certified and to participate in ICoCA reporting andprocesses (including monitoring and performance assessment, and complaints).

Check:■■Have you assessed security risks and do you have appropriate security measures in place based on those risks?
■■Do the security measures prioritise the protection of people?
■■Do security personnel know the expectations of their conduct?
■■If you are in the mining sector, are your security personnel trained on, and do they operate in accordance with, theVoluntary Principles on Security and Human Rights?

■■If you provide private security services, are you a member of the International Code of Conduct for Private
Security Service Providers?

E Further information
Websites:
Business &Human Rights Resource Centre
www.business-humanrights.org
International Business Leaders Forumwww.iblf.org
International Code of Conduct Association (ICoCA)
www.icoc-psp.org
International Committee of the Red Cross (ICRC). Resource Centre
www.icrc.org/eng/resources/index.jsp
The Montreaux Document [on private military and security companies]
www.eda.admin.ch/psc
Voluntary Principles on Security and Human Rights
www.voluntaryprinciples.org

Publications:
ICMM and partners, Voluntary Principles on Security and Human Rights: Implementation Guidance Tools
www.icmm.com/website/publications/pdfs/commitments/voluntary-principles-on-security-and-human-rights-implementation
International Alert, Conflict-Sensitive Business Practice: Guidance for Extractive Industries (2005)
www.international-alert.org/publications/conflict-sensitive-business-practice-guidance-extractive-industries-enOECD, Risk Awareness Tool for Multinational Enterprises in Weak Governance Zones (2006)
www.oecd.org/daf/inv/mne/weakgovernancezones-riskawarenesstoolformultinationalenterprises-oecd.htm
OECD Watch, Fact Sheet 3: Assessing Adherence to the OECD Guidelines’ Human Rights Provisions (2007)
http://oecdwatch.org/publications-en/Publication_2402
UNICEF, Child Rights and Security Checklist (2017)www.unicef.org/csr/files/Child_rights_and_Security_Checklist_ENG.pdf
UNICEF, Child Rights and Security Handbook (2018)www.unicef.ca/sites/default/files/field__files/FINAL_CRS%20Handbook%20%28ENGLISH%29_February%202018.pdf

RJC Code of Practices Guidance 123

(COP 14) Provenance claims
A Definitions and applicability
This provision applies to all RJC members.
The origin of mined material is the mine, company, region or geographical location where the mine is located, whether anartisanal and small-scale mine or a medium or large-scale one. The origin of recycled material is the point at which it re-enters
the jewellery supply chain. For recycled gold, silver or PGM this is the point at which it is returned to the refiner or otherdownstream intermediate processor or recycler.
A provenance claim is a documented claim, made using descriptions or symbols, that relates to gold, silver, PGM, diamonds
or coloured gemstones that are offered for sale (whether as stand-alone materials or set in jewellery). Provenance claims are
typically made about a product’s origin, verification of source, traceability of material, certification of material or suppliers, oranother mechanism to ensure responsible sourcing practices that are not covered elsewhere in the COP.
Source:• RJC

B Issue background
Businesses in the jewellery supply chain are increasingly asked about the conditions under which their products have been
produced or sourced. In turn, they are increasingly doing more to understand their own supply chain and ensure the materials
they sell do not contribute to conflict, child labour, human rights abuses, poor mining practices and other risks.
Many have taken to using provenance claims to detail their findings and assure their customers that the products they sell
have not contributed to negative social or environmental impacts. It is critical that all provenance claims are both truthful andrepresentative of the systems in place to ‘deliver’ on the claim: misleading or deceptive claims pose a significant risk to thereputation of individual companies and the industry. The robustness of systems is critical to the credibility of this claim.
Provenance claims are voluntary and the RJC does not require its members to make any provenance claims. If provenanceclaims are made, they must meet the requirements in this provision, and be audited as part of the COP audit. This section of the
COP has been designed to enable our members to define their own provenance claims, while ensuring that any such claims aretransparent, well reported and underpinned by effective management systems.
Provenance claims can take many different forms depending on how a business operates, and what commitment it wants to
make. The COP covers four main, but not exhaustive or mutually exclusive, scenarios for making provenance claims, for when abusiness:• traces material back through the supply chain to its origin, for example through invoices from the mine of origin, using
systems such as Canadamark or through systems using new technologies like blockchain;• verifies the sources or practices related to the material, for example working with suppliers to source recycled material ormaterial from cyanide-free mining, or sourcing from responsible artisanal or small-scale operations;• sources material from certified suppliers, for example buying Fairmined or Fairtrade gold; and• scrutinises materials or sourcing in another way, for example going beyond the COP 7 Due diligence for responsible
sourcing from conflict-affected and high-risk areas requirements by carrying out due diligence on environmental impacts
related to mineral production.

C Key regulations, standards and initiatives
International standards
The International Organization for Standardization (ISO) 14020 series of standards provides businesses with a globally
recognised and credible set of international benchmarks against which they can prepare their environmental labelling. These
provide a useful reference for claims and how to communicate them, especially ISO 14020:20001 on general principles forenvironmental labels and declarations.

1ISO, ISO 14020:2000 Environmental Labels and Declarations—General Principles (2000) www.iso.org/standard/34425.html

124 RJC Code of Practices GuidanceNational law
Provenance claims are a form of representation and may be regulated by consumer protection laws that prohibit false andmisleading advertising (see COP 28 Product disclosure).
National industry standards that address risks in sourcing also exist, such as the Voluntary Code of Conduct for
Authenticating Canadian Diamond Claims.

D Implementation guidance
Please note that the RJC management team is the authority on the acceptability of provenance claims. If in doubt, pleasecontact the RJC management team with your provenance claim query.
The RJC has two main requirements for provenance claims:• a truthful statement of commitment (what is promised); and• an outline of the underpinning systems that substantiates it (how the promise is achieved).
To achieve conformance with the provision during the audit, you will need to meet requirements for both elements of yourprovenance claim: the promise and how the promise is achieved. Once your provenance claim has been verified at audit, it willappear on your RJC certificate.

Changing a provenance claim post-audit
If you change a verified provenance claim, or start making a new, unverified, claim, you must get the relevant claim audited
as soon as reasonably practical. If your next audit deadline is more than a year away, you should ask for a ‘bolt-on’ audit
specifically to verify the new or altered provenance claim and add it to your RJC certificate. If you cannot, or do not wantto, undergo an additional audit, you will have to stop making the claim.

COP 14.1: Check applicability
Members shall check whether they make any provenance claims that apply under this provision.

Points to consider:• Establish whether this provision applies to you by reviewing all your advertising, marketing and other sales-related
documentation, as well as product invoices and any other type of communications, to determine whether you are making any
provenance claims, as defined in sections A and B (also see box ‘Examples of provenance claims’).
• If you are a large company, co-ordinate your review across departments to make sure you don’t miss any claims. This can
include asking:•Do any clients have specific requirements for their products or materials?

•

To whom does the marketing team talk before developing promotional material?

• If your review determines that this provision does not apply to you, document the results and get them approved by anappropriate senior manager. Include details on what materials were checked and which colleagues were spoken to.
• If an RJC-certified member makes a provenance claim that is not included in their RJC certificate, stakeholders can raise acomplaint through the RJC Complaints Mechanism.

RJC Code of Practices Guidance 125

Claims about matters covered in the COP
Claims that relate to compliance with the COP will be audited as part of the relevant COP provision, and will not becertified as provenance claims. This includes claims on:• adhering to the Kimberley Process Certification Scheme or World Diamond Council System of Warranties (in accordancewith COP 29 Kimberley Process Certification Scheme and World Diamond Council System of Warranties);• sourcing in accordance with the OECD Guidance (in accordance with COP 7 Due diligence for responsible sourcing
from conflict-affected and high-risk areas);• disclosing place of origin opinion on coloured gemstones (in accordance with COP 28.2 Product disclosure); and• testing for undisclosed laboratory-grown diamonds or claims that the diamonds are ‘natural’ (in accordance with COP
28.3 Product disclosure).
Claims that relate to product quality, or place of manufacture, similarly do not count as provenance claims under thisprovision and will not be audited as such. This includes claims such as ‘Made in (country)’, which require a specific locationof manufacture.

COP 14.2A: Systems
Members that make one or more provenance claims shall:a. Have systems in place to ensure that the provenance claims are truthful and substantiated by evidence.

Points to consider:• If you make a provenance claim, you must be able to substantiate it with an underpinning management system fit for the claim
being made—that is, a system that ensures you can uphold your claim consistently (see box ‘Examples of provenance claims’).
• You can make provenance claims with one or more existing industry standards. You do not, however, have to adopt any
particular industry standards and can choose to develop your own internal systems. If you do, make it transparent so thatyour system (for example, ‘responsible supplier code X’) is clear and publicly available.
• Be careful when using words like ‘ethical’, ‘responsible’ or ‘sustainable’ about sourcing and only do so if you clearly define theterm within the wording of the claim itself.
• Note that you can still make provenance claims even if they only apply to some, rather than all, of your materials. You need tomake this clear in the claim. That means using qualifying phrases such as ‘when requested’, ‘we can offer…’ or ‘at least 95% of
our diamonds are sourced from …’.
• It is important that you can communicate to customers about changing provenance claims and, if there is significant change
or if a new provenance claim is made, that this is audited as soon as possible.
• Systems should include procedures, record keeping and internal material controls (see Figure 14.1).

Documentation
Document procedures.
Keep adequate and appropriate records.

Transparency

Control

Make information on theprovenance claim andunderpinning systems
available on request.

Maintain internal material
controls to support claims
that apply to some but not
all of your products.

Make all relevant
documents, evidence
and records available
to the RJC auditor.

Establish formal
procedures to manage any
outsourcing of materials
covered by the claim.

Figure 14.1. Systems to ensure valid provenance claims

126 RJC Code of Practices GuidanceExamples of provenance claims
Good practice• ‘When requested, we can source diamonds from Canada, buying them directly from a Canadian diamond mine.’
This company commits to buying (and selling) Canadian diamonds (the promise) and does this by buying directly fromthe mine (how they achieve the promise). Customers can find out more information about the mine(s) on request.
• ‘We sell only post-consumer, recycled diamonds. This is confirmed by due diligence on our suppliers.’
This company details in their provenance claim how they verify that the diamonds they sell are recycled.
• ‘We sell recycled gold, as verified through the SCS Recycled Content Certification.’
This member makes clear that they verify their gold is recycled through a specific certification system.
• ‘We sell responsibly mined artisanal and small-scale gold that is Fairtrade or Fairmined certified, as a Fairtrade or
Fairmined licensee.’This company commits to selling gold that is certified to either of these schemes (the promise) and can do this because
it is a licensee of both these schemes (how they achieve the promise). Customers should be able to find out more about
Fairmined and Fairtrade through links online.

Poor practice• ‘We source all our materials responsibly.’
This claim does not make a clear promise (it’s vague); nor does it say how the promise is achieved (the systems or
requirements in place).
• ‘We source responsibly sourced gold based on written assurances from our suppliers.’
This claim does not explain how ‘responsibly sourced’ is defined.
• ‘Our gold is Fairmined/Fairtrade.’
If not all the gold bought and sold by a member is certified under these schemes, then the claim is misleading; it would bebetter to say ‘upon request’ or ‘where possible’.

Traceability claims
Many new technologies to enable traceability of material have emerged over recent years, for example blockchain
and radio-frequency identification (RFID), both of which are increasingly used to trace gold and diamonds. The use of
nanoparticles to trace provenance of gems back to the exact mine (‘paternity testing’) is another emerging example, foremeralds.
If you make any traceability claims using these kinds of systems, you must ensure they are both credible and transparent.
This includes checking that there you carry out sufficient technically competent review or verification of the system.

Claims on ASM progressive improvement initiatives
Several initiatives are working with artisanal and small-scale mining (ASM) communities using progressive improvement
approaches that can provide the basis for a company’s sourcing practices and therefore a provenance claim for
responsible ASM sourcing.
Downstream companies can use these systems to make and verify a claim related to ASM production, tailoring the claim
to the level of compliance and type of verification. Some examples of progressive improvement initiatives include:• The Code of Risk-mitigation for ASM engaging in Formal Trade (CRAFT): an open-source market entry standard for
ASM gold producers. www.responsiblemines.org/en/our-work/standards-and-certification/craft/• The Better Gold for ASM Continuous Improvement Escalator: a model, hosted by the Swiss Better Gold Association,with steps for ASM progression to continually improve practices. www.swissbettergold.ch/en/about-process• The Impact Escalator: a framework under the Impact Facility that allows ASM organisations of different sizes and atdifferent points in their sustainability journey to progress towards certification. www.impactfacility.com/approach
See COP 8 Sourcing directly from artisanal and small-scale mining for more information on the full spectrum of ASM
initiatives.

COP 14.2B: Training
Members that make one or more provenance claims shall:b. Do training to ensure that employees who are responsible for implementing the claims and responding to productenquiries, understand the claims and can explain them accurately.

RJC Code of Practices Guidance 127

Points to consider:• Identify staff that need training (for example, those making claims, those that are part of the underpinning systems).
• Develop appropriate materials and establish clear procedures for training staff. Keep a register and records of each training
session (including attendance sheets and certificates, both of which provide good evidence for auditors).
• Nominate one or more responsible managers to oversee the training programme.
• Make sure employees have access to all relevant documentation on all your provenance claims.

COP 14.2C and 14.2D: Transparency and complaint mechanism
Members that make one or more provenance claims shall:c. Make further information available to customers who ask about a provenance claim.
d. Have a complaints or grievance mechanism appropriate to the nature, scale and impact of the business to allow interested
parties to voice concerns.

Points to consider:• This requirement is not meant to restrict your ability to summarise claims for marketing purposes; complying with thisprovision does not mean you must use the exact words as they appear on your certificate every time you want to talk about
your claim. You do, however, need to ensure that the meaning is never changed.
• Your stakeholders should be able to get more information on any of your provenance claims by simply asking for it (with due
regard for any confidential information).
• You may find it useful to establish a list of all your provenance claims alongside the systems that sit behind each one. This will
help ensure accurate messaging when communicating with customers or answering their requests for more information. If
you make it available at the point of sale and on your website, it will also help you meet the requirements of provision 14.3.
• Establish a complaints and grievance mechanism (see box ‘Grievance mechanism template’). Ensure that it:•is clearly documented;•

describes what types of complaints are and are not admissible;•

outlines how complaints are investigated and addressed; and•is easily available to interested parties, including customers.

COP 14.2: Protecting consumers
Members who sell directly to consumers must make available at the point of sale and on their website, further detailabout the claim/s being made, and the systems in place to achieve them.

Points to consider:• If you sell directly to consumers, you must be truthful, clear and transparent in your claims. Take extra care to avoid
confusion in how you word your claims, and make sure that your customers have access to all the information they may needto make their purchasing decision.
• When buying your product, consumers must be able to understand all the claims you are making, and what you do to upholdthese. This means you must communicate your claims clearly and comprehensively at point of sale through, for example, ahigh-level summary of your systems or some other documentation (see provisions 14.2a and 14.2c).
• You can use a combination of point-of-sale and online statements to ensure consumers have all the information they needwhen buying your products. For example:•

At the point of sale: ‘We source conflict-free gold from Fairmined/Fairtrade mining organisations.’•

On your website: ‘We define conflict-free gold as gold that does not directly or indirectly support non-state armed
groups or public or private security forces through the extraction, transport, trade, handling or export. We pay [INSERTAMOUNT] amount of premium to miners per kilo we buy and have purchased [INSERT %] percentage of our gold from
Fairtrade/Fairmined-certified miners. See our Fairtrade/Fairmined licence at [INSERT LINK].’• Consider adding a link to your RJC webpage from your website and sales materials so that consumers can check certificatesand membership status for themselves.

128 RJC Code of Practices GuidanceCheck:■■Have you confirmed whether you make any provenance claims? Can you provide evidence of this?
■■If you make provenance claims, do you have systems in place to ensure they are truthful and substantiated?
■■Do you have procedures for checking how you achieve the claim’s promise?
■■If you make multiple claims, or claims that only apply to some of your products, do you have controls to protect the
integrity of materials?

■■Do you train relevant employees on the provenance claims you make?
■■Can you show how customers can access more information on what your provenance claims mean?
■■Do you have a working complaints mechanism?

E Further information
Websites:
ISO Environmental labels and declarations standards
www.iso.org/standard/60857.html
14020:2000 General principles
14021:2016 Self-declared claims (Type II)
14024:2018 Labelling (Type I)
14025:2006 Declarations (Type III)
14026:2017 Communicating footprint information
14027:2017 Product category rules
Sustainability Claims Good Practice Guide
https://www.isealalliance.org/sites/default/files/resource/2017-11/ISEAL_Claims_Good_Practice_Guide.pdf

Grievance mechanism template
You can develop a new grievance mechanism, or use one that you already have (for example, to meet COP 6 Humanrights, COP 7 Due diligence for responsible sourcing from conflict-affected and high-risk areas, or COP 18 Harassment,
discipline, grievance procedures and non-retaliation). Note that your grievance mechanism will likely have to incorporate
different procedures for workers to raise grievances (for COP 18) because employee information may only be legally
accessed by Human Resources. The template below can be used for external stakeholders.

Template text
[ENTITY NAME] has established this complaints procedure to hear concerns about circumstances in the supply chain.
[NAME OF SENIOR MANAGER] is responsible for implementing and reviewing this procedure.
Concerns can be raised by interested parties via email or telephone to:[NAME][TELEPHONE][EMAIL ADDRESS]
On receiving a complaint, we will aim to:• get an accurate report of the complaint;• explain our complaints procedure;• find out how the complainant would like it handled;• decide who is the appropriate person internally to handle the complaint, or help redirect the complaint to anotherentity, such as the relevant supplier, or a relevant industry body;• where the issue can be handled internally, seek further information where possible and appropriate;• identify any actions we should take, or monitor the situation;• advise the complainant of any decisions or outcomes; and• keep records on complaints received, and the internal process followed, for at least five years.
Signed/endorsed:
Date of effect: / /RJC Code of Practices Guidance 129

Labour rights
and Working
conditions

(COP 15) General employment terms
A Definitions and applicability
This provision applies to RJC members.
Apprentices are workers who are doing vocational training in the workplace for a fixed period. The fundamental aim of anapprenticeship is to learn a trade or acquire a skill. Apprentices do not participate fully in the production process of the unit
because they work under an apprentice’s contract that stipulates this, or because the fact that they are undertaking vocational
training impinges significantly on their productivity.
An employee is an individual who has entered into, or works under, a contract of employment, service or apprenticeship. This
includes permanent, temporary, full-time, part-time, casual, homework and seasonal employees at any level. Under the COP,
employees include both directly employed workers and indirectly employed workers who regularly work at members’ sites:• Directly employed workers have employment contracts with the RJC member. The RJC member is responsible for paying
taxes and social security contributions, and the contractual relationship is subject to national legislation.
• Indirectly employed workers have employment contracts with a third party, such as a labour agent, labour provider or a
subcontractor. Examples include subcontracted personnel such as security guards, housekeeping and canteen staff, as wellas temporary or seasonal workers.
Employment relationships are the legal link between employers and employees that exist when a person performs work or
provides services under certain conditions in return for remuneration.
Homeworkers are contracted by the company or by a third party (for example, a supplier, sub-supplier or subcontractor), but
do not work on the company’s site.
Remuneration is paid by employers to workers. It includes wages or salaries and any other benefits in cash or in kind.
Vulnerable workers are specific groups of people, such as women, migrants, people with disabilities, ethnic or religious groups,that exist within a larger population and that are at higher risk of being harassed, exploited or in any other way discriminatedagainst.
Sources:• International Labour Organization (ILO), Decent Work Indicators: Concepts and Definitions (2013)www.ilo.org/integration/resources/pubs/WCMS_229374/lang--en/index.htm• ILO, Governance and Tripartism Department (Governance)
www.ilo.org/public/english/dialogue/ifpdial/areas/legislation/employ.htm• ILO, Overview of Apprenticeship Systems and Issues (2012)www.ilo.org/wcmsp5/groups/public/---ed_emp/---ifp_skills/documents/genericdocument/wcms_190188.pdf• Organisation for Economic Co-operation and Development (OECD), Glossary of Statistical Terms (2004)
https://stats.oecd.org/glossary/detail.asp?ID=6228• Social Accountability International (SAI), Guidance Document for Social Accountability 8000(SA8000®:2014) (2016)www.sa-intl.org/index.cfm?fuseaction=document.viewDocument&documentid=563&documentFormatId=1166&vDocLink
Origin=1&CFID=22979020&CFTOKEN=2db102a753d2089b-A258963B-1C23-C8EB-80C2745C596B15C8

B Issue backgroundThe employment relationship is the legal link between employers and employees. It exists when a person does work or
provides services under certain conditions in return for remuneration. The corresponding legal instrument is an employment
contract, which should be formalised in writing and given to employees for their own records and reference.
It is through the employment relationship, however contractually defined, that reciprocal rights and obligations are createdbetween the employee and the employer. This relationship is also the main vehicle for workers to access the rights and benefits
associated with employment laid down by labour social security laws. Keeping accurate records of employees’ benefits andentitlements is an essential part of the employer’s role in ensuring that workers’ rights and benefits are upheld.

RJC Code of Practices Guidance 131

The traditional employment relationship used to be based on full-time work with a single employer, under a contract of
employment for unlimited duration, with protection against unjustified dismissal. Over the past 30 years, new patternsof employment have emerged in the global economy. These include an increasing use of fixed-term contracts and othercontractual arrangements where workers are not strictly employees. Some of these workers—particularly migrant workers
and homeworkers—are often afforded weaker protection under labour or social security law.
Exploitative working arrangements have also emerged, such as false apprenticeship schemes, where workers get reduced
wages or fewer benefits during a ‘training period’ without any real intent to impart skills or provide regular or ongoing work
afterwards.
Homeworking, successive short-term contracts, apprenticeships, subcontracting and labour-only contracting can all be
legitimately used within employment relationships if they are lawfully permitted, adequately documented and not used to
exploit workers. But they all tend to carry a higher risk of not meeting legal obligations to workers. The COP does not unduly
restrict the general use of these working arrangements. But under the COP, they cannot be used to avoid labour and social
security obligations; nor can they be used for extended periods of time to cover ongoing, routine tasks necessary for theorganisation to operate.

C Key regulations, standards and initiatives
International standards
In 2006, in recognition of the growing number of workers without protection in their employment relationships, theInternational Labour Organization (ILO) adopted the Employment Relationship Recommendation R198. 1This offers countries
guidance on how to reform national law and practice to protect workers against the circumvention of obligations throughcontractual or other legal arrangements.

National law
National laws and regulations, as well as collective bargaining agreements, offer workers protections. They also help address
discrimination in employment terms through mandatory disclosure requirements (see box ‘Addressing gender pay gaps’). It
is essential to keep up to date on the legal requirements for employment contracts, expectations for employee–employer
relationships and reporting requirements in all jurisdictions of operation.

Addressing gender pay gaps in the United Kingdom
All over the world, across diverse sectors, women are generally paid less than men. The difference between the average
earnings of men and women who are working is commonly known as the ‘gender pay gap’ (or ‘gender wage gap’).
In 2017, the United Kingdom introduced mandatory gender pay gap reporting for the first time. Under the new legislation,
UK-based organisations with 250 or more employees must publish and report specific figures about their gender pay gap,
including:• the mean and median gender pay gap in hourly pay;
• the mean and median bonus gender pay gap;
• the proportion of men and women in each pay quartile; and• the proportion of men and women receiving bonus payments.
This data provides information on the difference between the average pay of men and women across an organisation,
irrespective of their role. This means that a company can be paying women and men equally for equal work and still
have a significant gender pay gap if they are employing more men in senior roles.
Source:• UK Government, Gender Pay Gap Reporting: Overview (2017)www.gov.uk/guidance/gender-pay-gap-reporting-overview

1

ILO, R198—Employment Relationship Recommendation, 2006 (No. 198) (2006)
www.ilo.org/dyn/normlex/en/f?p=NORMLEXPUB:12100:0::NO::P12100_INSTRUMENT_ID:312535

132 RJC Code of Practices GuidanceD Implementation guidance
COP 15.1: Employment terms
Members shall ensure that employment terms with regards to wages, working hours and other employment conditions
are communicated to employees in writing before employment starts, in a language that is understood by them.

Points to consider:• Employment contract requirements differ from country to country and can change over time. It is your responsibility tounderstand and adhere to applicable law in all countries where you operate. Establish a process to stay up to date with legal
requirements for employment relationships and contracts.
• Give all your workers written contracts of employment that clearly define and communicate conditions of employment (suchas wages, working hours, overtime, compensation and benefits). These must comply with applicable law and any collective
bargaining agreements in place.
• Write all contracts in a language that your workers will understand, remembering that some workers (such as migrant
workers) can be particularly vulnerable when negotiating employment terms because of education, literacy and language
barriers, and cultural and social differences. Make sure written contracts are verbally explained to vulnerable workers interms they understand, as part of the recruitment process.
• All workers, whether directly or indirectly employed, should be given a contract before they start work; and copies of theseshould be kept within workers’ employment files. Make sure you communicate this expectation to your business partners
that are responsible for indirectly employed workers on your sites (see COP 5 Business partners).
• Under COP 15.1, you are not allowed to simply substitute contracts or add supplemental agreements to the original contract
after a worker arrives on-site. In cases where there are material changes to contract conditions, make sure you:•draft an amended employment contract;•

get written agreement by the employee;•

give the employee a printed copy of the new contract; and•keep a copy in the worker’s employment file.

COP 15.2: Labour and social security obligations
Members shall not avoid fulfilling legal labour and social security obligations to employees by using labouronly contracts, false apprenticeship schemes, excessive consecutive short-term employment contracts, and/or
subcontracting or homeworking arrangements.

Points to consider:• If you use labour-only contracting, you must make sure contracts are legitimate and that they are not being used as a way of
avoiding legal obligations to employees. Some forms of labour-only contracting are prohibited under applicable law. Many
jurisdictions have guidelines or criteria that define permissible contracting arrangements. These can include, for example:•

whether workers provide the materials or equipment to do the work;•

whether they can delegate their work;•

whether they provide their services through an independent business; and•whether they also provide these services to others.

• Using labour agents or providers to hire workers can be risky if you have no control or oversight of the conditions ofrecruitment. See COP 20 Forced labour for more guidance on monitoring for risks of human trafficking.

Apprenticeships• Apprenticeship schemes have an important role in training and are allowed under the COP. But many jurisdictions regulate theperiod of training and the level of compensation that is payable to apprentices, so it is important that you understand applicablelaw within countries of operations to ensure all apprenticeships and training positions align with legal requirements.
• If there are no legal protections against reduced wages for apprentices, you should make sure that the ‘training period’ during
which the worker receives reduced wages is not excessive and that it is defined within the apprentice’s employment contract.

RJC Code of Practices Guidance 133• Apprenticeships or traineeships are ‘false’ if they are used to underpay workers or avoid legal obligations, or if they operate
without any real intent to impart skills or provide regular employment. Children and young workers are particularly
vulnerable to being exploited through such false schemes.

Temporary workers• The RJC recognises that temporary or outsourced labour is sometimes needed to manage varying business demand; andthe use of short-term employment contracts, subcontracting and homeworking is allowed under the COP. You must not,however, use these employment arrangements to avoid your statutory obligations to employees.
• The use of short-term contracts (less than six months) might be considered excessive:•

if you employ large numbers of workers under these terms to perform ongoing, routine tasks; or•if your workers have to reapply for successive short-term contracts over long periods of time.

• Where such practices exist, consider developing policies and programmes to improve business planning and enhance job
security for workers.

COP 15.3: Record-keeping
Members shall maintain appropriate employee records, including records of piece-rate and wage payments as well asworking hours, for all employees, whether on a full-time, part-time or seasonal basis.

Points to consider:• Find out if there are any legal, certification or buyer requirements where you operate related to gender pay gaps or any
other type of disclosure involving employee records. If there are, make sure you define procedures to collect and maintaindata in a way that allows it to be shared securely without compromising privacy laws.
• Keep employee records in a way that is consistent with the terms and conditions of the employment contract:•

Where wage payments depend on working hours, you should record individual employee hours on a daily, weekly ormonthly basis as part of your time-keeping system to ensure accurate payment (see COP 17 Remuneration).

•

Where working hours do not vary (for example, in a general office or retail environment) or are at the discretion of theemployee (for example, for management positions), you can simply describe working hours in employment contracts.

•

Where wages are paid by piece instead of by hours worked (as part of a piece-rate payment scheme), you should keep
accurate records of individual employee output as well as hours worked. (To learn more about piece-rate payment
schemes and wage expectations, see box ‘Piece-rate payment schemes’ under guidance for COP 17 Remuneration.)• In all cases, note that recording output, hours worked and total wage payments will also help you check conformance with
COP 16 Working hours and COP 17 Remuneration.

Check:■■Can you show the auditor that employees understand their employment terms?
■■Do both directly and indirectly employed workers receive employee contracts in a language they understand before
they start employment?

■■Do you keep copies of employment contracts in workers’ employment files?
■■If employment terms have changed, can you show that you followed the correct procedures for updating contracts (thatis, that you drafted an update, got written agreement from the employee, gave one copy to the employee and saved
another copy in their employment file)?

■■If you use labour-only contracting, apprenticeships, consecutive short-term employment contracts, subcontracting or

homework arrangements, are these structured so that employees receive the right labour and social security benefits?

■■Can you show that your apprenticeships comply with local law?
■■Have you identified disclosure requirements involving employee records; and do you have procedures in place to report
the required information without compromising privacy laws?

■■Do you have records of piece-rate and wage payments and working hours for all employees?

134 RJC Code of Practices Guidance

E Further information
Websites:
ILO, Decent Work Indicators
www.ilo.org/integration/themes/mdw/WCMS_189392/lang--en/index.htm
ILO, Employment relationship
http://ilo.org/ifpdial/areas-of-work/labour-law/WCMS_CON_TXT_IFPDIAL_EMPREL_EN/lang--en/index.htm
Verité, Fair Hiring Toolkit
http://helpwanted.verite.org/helpwanted/toolkit

Publications:
Business for Social Responsibility (BSR), Good Practice Guide: Global Migration (2010)www.bsr.org/reports/BSR_Good_Practice_Guide_Global_Migration.pdf
ILO, The Employment Relationship: An Annotated Guide to Recommendation No. 198 (2007)
www.ilo.org/ifpdial/areas-of-work/labour-law/WCMS_172417/lang--en/index.htm
SAI, Guidance Document for Social Accountability 8000 (SA8000®:2014) (2016)www.sa-intl.org/index.cfm?fuseaction=document.viewDocument&documentid=563&documentFormatId=1166&vDocLinkOr
igin=1&CFID=22979020&CFTOKEN=2db102a753d2089b-A258963B-1C23-C8EB-80C2745C596B15C8UK Government, Gender Pay Gap Reporting: Overview (2017)www.gov.uk/guidance/gender-pay-gap-reporting-overview

RJC Code of Practices Guidance 135

(COP 16) Working hours
A Definitions and applicability
This provision applies to RJC members.
A collective bargaining agreement is a legally enforceable, written contract between a company’s management and its
employees, represented by a trade union or equivalent. Collective bargaining agreements must comply with applicable law.
Some of the subjects of collective bargaining, as identified by the International Labour Organization (ILO) include wages,
benefits and allowances, working time, annual leave, selection criteria in case of redundancy, the coverage of collective
agreement and granting of trade union facilities.
Employees include both directly employed workers that have contracts with the RJC member and indirectly employed workers
that regularly work at members’ sites and that have employment contracts with a third party, such as a labour agent, labour
provider or contractor/subcontractor.
Non-voluntary overtime refers to any overtime work an employee does under threat of penalty, or without willing consent. It
is considered an indicator of forced labour, and a violation of COP 20 Forced labour.
The normal working week limits the amount of non-overtime hours an employee works per week to a maximum of 48 hours
under international labour standards. National or local law can sometimes define the limit as less than 48 hours per week; so
can a collective bargaining agreement.
Overtime refers to the number of hours an employee works beyond the normal working week. International standards set
overtime limits at 60 hours per week. But different countries, local laws and collective bargaining agreements may accept
different standards.
Production peaks are defined as occurring for a 17-week period (a third of the year). This is an industry accepted norm datingback to 1996 when the Apparel Industry Partnership was established, known today as the Fair Labor Association.
Rest days are a continuous period of not less than 24 hours during which an employee is entitled to abstain from working forher employer.
Working hours are the amount of time employees spend working on behalf of their employer.
Sources:• ILO, C030—Hours of Work (Commerce and Offices) Convention, 1930 (No. 30) (1930)
www.ilo.org/dyn/normlex/en/f?p=NORMLEXPUB:12100:0::NO::P12100_INSTRUMENT_ID:312175• ILO, Q&As on business and collective bargaining
www.ilo.org/empent/areas/business-helpdesk/faqs/WCMS_DOC_ENT_HLP_CB_FAQ_EN/lang--en/index.htm#Q11• Social Accountability International (SAI), Guidance Document for Social Accountability 8000 (SA8000®:2014) (2014)www.sa-intl.org/index.cfm?fuseaction=document.viewDocument&documentid=563&documentFormatId=1166&vDocLink
Origin=1&CFID=22979020&CFTOKEN=2db102a753d2089b-A258963B-1C23-C8EB-80C2745C596B15C8

B Issue background
Working hours are a fundamental component of safe and humane working conditions. The first ever International Labour
Organization (ILO) Convention in 19191 focused on working hours, stipulating a maximum of 48 hours per working week.
Excessive working hours in manufacturing and extractive industries remains one of the most regularly raised issues by civilsociety and trade unions. In addition to concerns about exploitation and impact on family life, excessive working hours also
create workplace health and safety risks.
A combination of remote sites, a migrant or expatriate workforce, and premium compensation for working long shifts makes
long working hours common in the mining industry. The seasonal nature of the jewellery industry also contributes to long
working hours in midstream and downstream companies in the supply chain. A business’s ability to deal with customer
demands and workers’ desire to work overtime can all contribute to excessive working hours. Working hours are also strongly
linked to wages because employees may seek to work longer hours to increase their income. Some factories pay by item
completed (or ‘piece’), rather than by hour, which can also lead to longer working hours.

1

ILO, C001—Hours of Work (Industry) Convention, 1919 (No. 1) (1921) www.ilo.org/dyn/normlex/en/f?p=NORMLEXPUB:12100:0::NO::P12100_ILO_CODE:C001

136 RJC Code of Practices GuidanceWeekly rest and paid annual leave are expected as a normal part of working agreements, typically required by national andlocal law, and must be provided to employees as part of their benefits. Where shift rosters mean workers don’t always get one
rest day in seven, alternative arrangements should be agreed in compensation. For example, some mines will operate ‘fly-in, flyout’ contracts where (non-local) workers a number of weeks of consecutive workdays followed by a number of weeks of leave.
Special leave, such as maternity, paternity and compassionate leave, should be provided for in compliance with applicablenational law.
Some companies set a shorter normal working week that allows more flexibility for expanded hours during peak demand andcreates the opportunity for workers to have more rest days within the week. Others provide long leave periods during special
holidays. The RJC’s approach to working hours takes these measures into account in recognition of the seasonal nature of thejewellery supply chain.

C Key regulations, standards and initiatives
International standards
A combination of ILO conventions provides the global (and COP) standards on working hours, weekly rest and annual leave(see Table 16.1).
Table 16.1. ILO conventions providing standards on working hours, weekly rest and annual leave
ILO convention

Year

International standard for workers

ILO-1

Hours of Work (Industry)

1919

ILO-30

Hours of Work
(Commerce and Offices)

1930

Maximum working hours of 8 hours per day; or 48 hours
per week.

Reduction of Hours of Work1962

ILO-116• This principle forms the basis of much national legislation.
Maximum working hours per week of 40 hours.
• A principle prominent in high-income countries

ILO-14

Weekly Rest (Industry)

1921

At least 24 hours consecutive rest each week.

ILO-106

Weekly Rest (Commerce andOffices)

1957• Employers may agree alternative arrangements
in consultation with trade unions or other worker
representatives.

ILO-132

Holidays with Pay (Revised)1970

At least three weeks of guaranteed holiday each year.

ILO-183

Maternity Protection

2000

Access to maternity leave for women following childbirth.
Time during the day to breastfeed for women returning towork after maternity leave.

Both conventions ILO 1 and ILO 30 allow for some departure from maximum working-hour limits in certain circumstances.
For example, there are exceptions for employees whose work is by nature intermittent or must be done outside the limits laid
down for other employees. There are exceptions for work that has to be carried out continuously by a succession of shifts (inwhich case, a weekly maximum is set at 56 hours with weekly rest days compensated by a process secured under national law).
And the conventions also recognise the need for temporary exceptions, for example to complete urgent work or repairs, or
because alternative arrangements have been agreed between workers’ and employers’ organisations and by the government.

National law
National law may vary from the ILO conventions described above. It is essential to understand the relevant legislation andregulations in every country you have operations. Note that, if national law differs from COP requirements, the RJC expects
you to follow whichever is more stringent.
Nearly all countries have national or local legislation to govern working hours overall, as well as for specific sectors or jobs. In
many countries, there is a limit on the number of normal working hours an employee can work each week, although precise
limits may vary. For example, Chinese law limits overtime to 3 hours per day, and 36 hours per month; Vietnamese law sets adaily limit of 4 hours, and an annual limit of 200 hours. Brazil, India, Indonesia, Italy, Pakistan and Thailand all also have explicit
limits on hours worked within a particular period.
National and local legislation also define requirements for weekly rest days and annual holiday entitlements, as well as
maternity and paternity leave. Failure to comply with these laws can lead to penalties ranging from fines to imprisonment.

RJC Code of Practices Guidance 137

D Implementation guidance
Points to consider:• Identify applicable national and local laws related to working hours and leave in all countries of operations.
• Make a senior management function, such as human resources, responsible for setting and overseeing working hours,
overtime and rest and leave entitlements. And make sure it establishes documented procedures for monitoring, approving
and managing in accordance with local law and COP requirements.
• Compile all your collective bargaining agreements with trade unions or other worker organisations and:•make sure they define the agreed-upon working hours, overtime, breaks and leave; and•confirm that the terms of each agreement comply with applicable law.

• Develop a timekeeping system—such as time cards or other record of working hours, including overtime—for all workers(permanent, contracted or temporary) to accurately track their working hours whether paid by piece or hour. This system
can be used to calculate wages.
•

Note that it is considered best practice for workers to personally record the time they begin and end their workday
because it creates a level of worker oversight in the timekeeping system.

• Make sure your staff are adequately trained and educated on all relevant issues. This includes:•

training those responsible for daily management on applicable law, COP requirements and your own policies andprocedures for managing working hours;•

educating managers and workers on the normal working hours and overtime limits, your timekeeping system and theprocess to report errors in time reporting; and•special training for managers and supervisors on working hours for children and young workers (which are usuallydifferent) to help ensure these workers are not put at risk of working overtime or of working during time periods when
they legally cannot work (see also COP 19 Child labour).

• Where relevant, do a risk assessment appropriate to your business’s circumstances to assess where there is a risk ofmaximum working hours being exceeded or leave entitlements being breached. Get senior management to review theresults to determine how it can reduce overtime by, for example, adjusting capacity and timelines or hiring temporary labour.

COP 16.1: Working hours
Members shall comply with applicable law on working hours. The normal working week, not including overtime, shallnot exceed 48 hours.

Points to consider:• Working hour limits for both the normal working week and overtime (COP 16.2) apply to hourly workers, and managers witha contract with defined working hours. They do not apply to salaried managers (although employment terms for salaried
managers must still comply with applicable law, and also should be defined in the employee’s contract).
• The COP defines the normal working week at 48 hours per week. If national or local law differs from this, you should follow
whichever is more stringent. That is:•

if local law sets a weekly limit above 48 hours, you must comply with the COP; and•if it sets a limit below 48 hours you must comply with local law.

• The only exceptions to the 48-hour requirement are for mines or other similar industrial environments that operate on aroster cycle or rotational shift basis, or in emergency situations. Either way, working hours must still comply with applicablelaw and you must still take appropriate safeguards to protect your workers’ health and safety.
• The COP does not set a daily working-hour limit. But you should review applicable law and comply with any legally defined
daily limits.
• If you use a piece-rate or other incentive system, make sure that the minimum daily production quota is achievable by mostworkers within an eight-hour shift. This will help ensure that most workers do not have to work more than eight hours per
day to earn minimum (or prevailing industry) wage. Consider designing your system so that a significant portion of yourworkers exceed the daily quota, to earn extra pay.

138 RJC Code of Practices Guidance• Calculate the normal working week for part-time workers using a prorata basis against a normal full-time week.
• Where allowed under applicable law, you can average the number of hours of work over a legally defined time period to help
manage and report hours worked per normal working week and overtime.
•

Note that formal and procedural requirements may need to be attached to such calculations, such as obtaining permission
from the relevant authorities.

COP 16.2: Overtime
If overtime work is required for business needs, members shall ensure that:a. They strive to use voluntary systems for overtime work. Required overtime is only acceptable where it is allowed underapplicable law or collective bargaining agreements, within the limits defined by COP 16 and outlined in employment
contracts.
b. In all other circumstances, overtime work shall be requested under a voluntary system and within limits set underapplicable law or collective bargaining agreements. The imposition of overtime where employees cannot leave the work
premises or are in any way forced to accept it (through abuse, threats of dismissal or other) is not allowed. Refusal to workovertime shall not be punished, retaliated against or penalised in any way.
c. The sum of the normal working week and overtime hours shall not exceed 60 hours in a week unless defined otherwise
by applicable law or a collective bargaining agreement, or unless there are exceptional circumstances (such as production
peaks, accidents or emergencies), which will be assessed as outlined in the guidance for COP 16. In all cases, members
shall take appropriate safeguards to protect the workers’ health and safety.

Points to consider:• Establish a policy stating that workers will not be required to work overtime involuntarily, and will not be punished,retaliated against or penalised in any way for refusing to work overtime.
• Required (or mandatory) overtime can be defined and agreed within employment contracts if allowed by law or collective
bargaining agreements. By signing contracts with these terms, workers are voluntarily consenting to mandatory overtime.
• Communicate your policy to supervisors and employees so they are aware and understand how to report non-compliances.
And make sure grievances related to this policy can be raised through your existing grievance mechanism and procedures(see COP 18.4d Harassment, discipline, grievance procedures and non-retaliation).
• Make sure you have appropriate controls to avoid children and young workers from working overtime or from being asked towork at times they legally cannot. For more guidance, see COP 19 Child labour.
• Always try to make allowances for the personal and domestic circumstances of individual workers when requesting
overtime; and make provision for the needs of pregnant or nursing women or people with disabilities.
• The COP defines the maximum number of hours an employee can work (including normal working week plus overtime) as
60 hours per week. You should pay the normal working week at the normal wage rate (at or above minimum wage) and pay
overtime hours at a premium rate. If national or local law differs from this, you should follow whichever is more stringent.
• You can make overtime arrangements through a collective bargaining agreement with trade union representatives. In
countries like India, where there are few trade unions, you can establish overtime arrangements through written records ofmeetings with other representatives freely designated by the workers, without your obstruction or intervention. For more
information on determining conformance in such situations, see COP 21 Freedom of association and collective bargaining.
•

Note that collective bargaining agreements do not take precedence over applicable law. That means that if local law sets
a limit for the normal working week plus overtime at less than 60 hours per week, the agreement must comply with thelower limit.

• Where allowed under applicable law, you can calculate hours of work including overtime as an average over a period of
longer than one week.

RJC Code of Practices Guidance 139

Overtime variations
The RJC has adopted an approach that defines a degree of tolerance for overtime that occurs due to exceptional
circumstances (such as peak production, emergencies and accidents). The tolerance level is strictly defined based on
severity and pervasiveness thresholds. This is to clearly distinguish between isolated instances of limited overtime(conformance) and routine or excessive overtime (non-conformance). This means that a non-compliance related to
employees working 70 hours a week for two weeks will not be assessed in the same as one related to employees working
70 hours a week for several consecutive months.
RJC auditors will assess working-hour compliance using an average of the total working hours per week to identify any
non-conformances based on predefined thresholds (see Table 16.2). The conformances assessment will be applied acrossthe facility and for specific areas or job functions.
In cases where local law does not limit hours, or the threshold exceeds 84 hours per week, RJC members should reduce
working hours to the 60-hour industry standard in accordance with Table 16.2 so that there are no critical or major nonconformances.
Table 16.2. Tolerance levels for assessing conformance with COP requirements on working hours
Total working hours per week
(average for the week)% of working weeks with overtime(total or specific area or job function)
Between 1% and 5%

More than 84 hours per week*

Between 5% and 40%

Greater than 40%

Critical non-conformance

More than 72 and less than orequal to 84 hours per week
(and less than local law limit)

Major non-conformance

Critical non-conformance

Critical non-conformance

More than 60 and less than orequal to 72 hours per week
(and less than local law limit)

Minor non-conformance(conformance in exceptional
circumstances**)

Major non-conformance

Critical non-conformance

More than local law limit***and less than or equal to 60
hours per week

Minor non-conformance(conformance in exceptional
circumstances**)

Minor non-conformance(conformance in exceptional
circumstances**)

Major non-conformance(minor non-conformance in
exceptional circumstances**)

Less than or equal to 60 hours
per week or local law limit(whichever is lower)

Conformance* Note that a tolerance of 1% of population is allowed. So, if less than 1% of workers is detected to do more than the legal limit, then this is conformance(except if more than 84 hours).
*Overtime exceeding 84 hours per week will always be assessed as a ‘critical’ non-conformance even if local law does not limit working hours or the legal (orcollective bargaining agreement) overtime limit exceeds 84 hours per week.
** If working hours exceed 60 hours per week, the assessor will verify whether the case meets the definition of exceptional circumstances. If so, and if the
facility has supporting records to demonstrate exceptional circumstances occurred, it will not be assessed as a non-conformance. Any hours worked above
72 hours per week will be assessed as a non-conformance, even if the facility can demonstrate exceptional circumstances.
*** Where local law sets the working week limit lower than 60 hours per week.

COP 16.3: Rest days
Members shall provide all employees with at least one rest day in seven consecutive working days in accordance with
International Labour Organization (ILO) Convention 14. Work time exceeding this limit is permitted only under thefollowing circumstances:a. a collective bargaining agreement or applicable law allows for work time averaging including adequate rest periods; orb. during peak production periods, so long as the longer work time is rare, voluntarily performed and compensated at theappropriate premium level established by law or a collective bargaining agreement, or where unregulated by either, at apremium rate at least equal to the prevailing industry standards.

140 RJC Code of Practices GuidancePoints to consider:• Make sure all employees are given at least one rest day (equal to 24 consecutive hours) each week.
• If you want employees to work on a rest day (for example, due to scheduling demands), make sure you give them analternative rest day within the same week or the one immediately after, as in accordance with local law.
• If work-time averaging has been agreed through a collective bargaining agreement and is permitted by local law, make surethat workers’ occupational health and safety has been assessed and is not being compromised.
• Peak production is defined as a 17-week period (a third of the year) when exceptions to the rest day requirement canbe made in conformance with this provision. This is not a continuous period but cumulative sum, which can take place at
different times throughout the year.

COP 16.4: Leave
Members shall provide employees with all legally mandated public holidays and leave, including maternity andpaternity, compassionate and paid annual leave. Where no applicable law exists, three weeks’ paid annual leave shallbe provided in accordance with ILO Convention 132. Special leave or working-time arrangements for employees withfamily responsibilities shall apply to all employees regardless of gender.

Points to consider:• Annual leave should be paid at the same rate as a worker’s standard wages.
• Identify all public holidays and paid leave entitlements required by applicable law and make sure these dates are recorded
and tracked to manage your scheduling and capacity planning. Define these public holiday and leave entitlements within
employment contracts.
• Where major local holidays (such as Eid, Diwali, Christmas or Chinese New Year) require operations to be temporarily shut
down, you can offset the period of vacation against annual leave. But make sure you communicate this to workers in writingin advance.
• Where allowed under applicable law, a collective bargaining agreement may provide for swapping alternative periods ofleave in lieu of public holidays.
• Work with employees with family responsibilities to accommodate scheduling requests. This could include temporarily (orpermanently) adjusting the employee’s working hours. For example, a worker might need to take a morning off to take heror his child to the doctor. You may be able to accommodate this request by either rescheduling their work for a later shift, or
allowing them to make up the time later that day. Similarly, if a worker needs to get home before her or his child comes out ofschool, it may be possible to adjust their standard schedule to ensure an earlier finish.

COP 16.5: Breaks
Members shall provide all employees with a workday break in accordance with applicable law. If there is no applicablelaw, then members shall provide employees with at least one uninterrupted work break of reasonable duration if theywork longer than six hours.

Points to consider:• Review applicable law and identify what type of workday breaks, and how many, employees are entitled to.
• If local law doesn’t specify workday breaks, you must give your employees at least one uninterrupted work break if their shift
is six or more hours.
• Schedule breaks for the middle of a worker’s shift. A reasonable duration for coffee and tea breaks is commonly 10 to 30
minutes; for meal breaks it is 30 minutes to two hours.
• Establish internal procedures to give and track work breaks and communicate this information to supervisors andemployees.
• Bathroom breaks should be given as and when needed by the worker and are different to work and meal breaks. Note thatsome people may require more frequent bathroom breaks, for example when pregnant or due to medical conditions.

RJC Code of Practices Guidance 141

Check:■■Have you effectively communicated your working-hour policies and procedures to workers?
■■Do you have a reliable and accurate system for recording the number of hours worked by each worker, and for tracking
overtime, leave entitlements and parental leave in compliance with national law and regulations?

■■Are you aware of, and do you comply with, applicable law related to working hours and leave in all countries ofoperation (including laws about child and young workers)?

■■Do you comply with national law, existing collective bargaining agreements if applicable, and COP requirements forregular working week and overtime limits and rest days?

■■Can you show that any cases where working hours exceed the 60-hour limit fit the COP’s exception criteria?
■■Can you show that all overtime is voluntary and that workers are not penalised if they decline to work overtime?
■■If you use production quotas or piece-rate systems, can you show that the minimum daily quota is achievable by mostworkers within an eight-hour shift?

■■Do you give workers at least one rest day every week? If not, can you show that the work time complies with a collective
bargaining agreement or with applicable law?

■■Do you give workers reasonable breaks during shifts—specifically, if an employee’s shift is six or more hours?

E Further information
Websites:
ILO, Conventions (conventions 1, 14, 132 and 183 are particularly useful)www.ilo.org/dyn/normlex/en/f?p=1000:12000:0::NO
ILO, Inclusive Labour Markets, Labour Relations and Working Conditions Branchwww.ilo.org/public/english/protection/condtrav/database/
ILO, Q&As on business and working time
www.ilo.org/empent/areas/business-helpdesk/faqs/WCMS_DOC_ENT_HLP_TIM_FAQ_EN/lang--en/index.htm

Publications:
The Factories Act, 1948 as amended by the Factories (Amendment) Act, 1987 (1987) [India]
www.ilo.org/dyn/natlex/docs/WEBTEXT/32063/64873/E87IND01.htm
Fair Labour Association, FLA Workplace Code of Conduct and Compliance Benchmarks (2011)www.fairlabor.org/sites/default/files/fla_complete_code_and_benchmarks.pdf
ILO, Better Work 8: Working Time (2013)https://betterwork-.org/global/wp-content/uploads/Guidance-8-Working-Time-rev-Jan-2013.pdf
ILO, C030–Hours of Work (Commerce and Offices) Convention (1930)
www.ilo.org/dyn/normlex/en/f?p=NORMLEXPUB:12100:0::NO::P12100_INSTRUMENT_ID:312175
ILO, Rest Periods: Definitions and Dimensions (2015)
www.ilo.org/wcmsp5/groups/public/---ed_protect/---protrav/---travail/documents/publication/wcms_491374.pdf
SAI, Guidance Document for Social Accountability 8000 (SA8000®:2014) (2016)www.sa-intl.org/index.cfm?fuseaction=document.viewDocument&documentid=563&documentFormatId=1166&vDocLinkOr
igin=1&CFID=22979020&CFTOKEN=2db102a753d2089b-A258963B-1C23-C8EB-80C2745C596B15C8142 RJC Code of Practices Guidance(COP 17) Remuneration
A Definitions and applicability
This provision applies to RJC members.
A collective bargaining agreement is a legally enforceable, written contract between a company’s management and its
employees, represented by a trade union or equivalent. Collective bargaining agreements must comply with applicable law.
Some of the subjects of collective bargaining, as identified by the International Labour Organization (ILO) include wages,
benefits and allowances, working time, annual leave, selection criteria in case of redundancy, the coverage of collective
agreement and granting of trade union facilities.
Deductions are the financial amount withheld from an employee’s earnings. Common legally required deductions include
taxes, health care and social insurance. Deductions may also include lawful garnishments, where employers are required todeduct funds from employees’ wages, for example as a result of a court order to pay off a debt.
Employees include both directly employed workers that have contracts with the RJC member and indirectly employed workers
that regularly work at members’ sites and that have employment contracts with a third party, such as a labour agent, labour
provider or contractor/subcontractor.
A living wage is the remuneration received for a normal working week by a worker in a particular place sufficient to afford
a decent standard of living for the worker and her or his family. Elements of a decent standard of living include food, water,
housing, education, health care, transportation, clothing and other essential needs including provision for unexpected events.
The minimum wage is the legally required minimum amount that must be paid to workers. It is the higher of that set by thegovernment or that contained in an applicable collective bargaining agreement.
A premium rate of pay is one that is higher than the normal working week pay rate.
Remuneration is paid by employers to workers. It includes wages or salaries and any other benefits in cash or in kind.
A social insurance scheme is any government-sponsored programme that provides protection against various economic
risks to people (such as loss of income due to sickness, old age or unemployment) and that requires financial contributions,
usually from employers.
Vulnerable workers are specific groups of people, such as women, migrants, people with disabilities, ethnic or religious groups, thatexist within a larger population and that are at higher risk of being harassed, exploited or in any other way discriminated against.
Sources:• Global Living Wage Coalition, What is a Living Wage?
www.globallivingwage.org/about/what-is-a-living-wage• ILO, C100—Equal Remuneration Convention (1951)
www.ilo.org/dyn/normlex/en/f?p=NORMLEXPUB:12100:0::NO::P12100_ILO_CODE:C100• OECD, Glossary of Statistical Terms (2001)
https://stats.oecd.org/glossary/detail.asp?ID=2490• Social Accountability International (SAI), Guidance Document for Social Accountability 8000 (SA8000®:2014)(2016)www.iqnet-certification.com/userfiles/SA8000_MS_New/18.%20SA8000%202014%20Guidance%20Document_May%20
2016_FINAL.pdf

B Issue backgroundWage-related benefits vary by country, but often include items such as holiday, overtime pay, sick pay, health benefits,
incentives and bonuses, limited family leave benefits with pay and savings plans. In some cases, workers may be given nonwage benefits such as health care, accommodation, education and basic services such as water and electricity.
The minimum wage is the minimum amount that must be paid to the workers of a country. It is generally set on an hourly, daily
or monthly basis. More than 90 per cent of countries have legislation setting the minimum wage. Ideally, the minimum wage
is calculated as a ‘living wage’ that can cover the minimum needs of the worker and his or her family, in light of the country’s
prevailing economic and social conditions. But this is not always the case, especially in labour-intensive countries. This canlead to a detrimental cycle of employees taking on too much work and overtime to make ends meet; working hours andremuneration are closely linked.
In addition to needing living wages, workers also need to receive these regularly to meet their domestic needs. The frequencyof payments—weekly, fortnightly or monthly, for example—should be predetermined and respected.
RJC Code of Practices Guidance 143

Piece-rate payment schemes
Some employers pay wages by piece instead of by hours worked, especially in labour-intensive roles. In many factories,
failure to reach production quotas can lead to fines or deductions from wages. These payment schemes are often difficult
for workers to understand, leaving them vulnerable to underpayment because they can’t easily calculate or verify theirwages. Piece-rate payment schemes can also drive excessive working hours as workers take on more and more overtime
to meet unreasonable quotas to avoid penalties. They also tend to incentivise verbal or physical abuse.
Properly implemented, piece-rate payment schemes can serve to benefit workers because they allow for bonus pay
without overtime. In India, for example, a ‘monthly fixed rate’ is increasingly used in the diamond sector to set a legal
minimum wage based on the average output of piece-rate workers during normal working hours.
Source:• SAI, Guidance Document for Social Accountability 8000 (SA8000®:2014)(2016)www.iqnet-certification.com/userfiles/SA8000_MS_New/18.%20SA8000%202014%20Guidance%20Document_
May%202016_FINAL.pdf

C Key regulations, standards and initiatives
International standards
In 1928, the International Labour Organization (ILO) adopted Convention 26,1 which required signatory nations to establish aminimum wage-fixing body that should ‘take account of the necessity of enabling the workers to maintain a suitable standardof living’.
In 1970, the ILO adopted Convention 131,2 which outlined the factors that must be included when calculating a minimum
wage: ‘the need of workers and their families, their general level of wages in the country, the cost of living, social security
benefits, relative living standards of other social groups, requirements of economic development, the country’s level ofproductivity and maintenance of high levels of employment’.
ILO Convention 30 on Hours of Work (Commerce and Offices)3 recommends that signatory nations establish an overtime rateof no less than one-and-a-quarter times the regular rate.
The right to just and favourable remuneration is also enshrined in Article 23.3 of the Universal Declaration of Human Rights(1948).4 This states that remuneration should ensure for the worker and his/her family an existence worthy of human dignity.

National law
Nearly all countries have a national body that determines minimum wages nationally, or for sectors or occupations. Wages
and other benefits may also be directly negotiated through collective bargaining agreements between employers and workers
represented by independent trade unions or other worker representatives.
In most jurisdictions, overtime must be paid at a premium. As this varies between sectors and countries, it is essential to beaware of all relevant wage conditions in all jurisdictions of operation.

D Implementation guidance
Assign responsibility for setting and overseeing remuneration and statutory benefits to a senior management function, suchas human resources. If you have a collective bargaining agreement, make sure it deals with wages, benefits, overtime rates,
methods of payment and deductions (if applicable).

1

ILO, C026—Minimum Wage-Fixing Machinery Convention, 1928 (No. 26) (1930)
www.ilo.org/dyn/normlex/en/f?p=NORMLEXPUB:12100:0::NO::P12100_ILO_CODE:C026

2

ILO, C131—Minimum Wage Fixing Convention, 1970 (No. 131) (1972)
www.ilo.org/dyn/normlex/en/f?p=NORMLEXPUB:12100:0::NO::P12100_INSTRUMENT_ID:312276

3

ILO, C030—Hours of Work (Commerce and Offices) Convention, 1930 (No. 30) (1933)
www.ilo.org/dyn/normlex/en/f?p=NORMLEXPUB:12100:0::NO::P12100_INSTRUMENT_ID:312175

4

UN, Universal Declaration of Human Rights (1948) www.un.org/en/universal-declaration-human-rights

144 RJC Code of Practices GuidanceCOP 17.1: Wages for normal hours worked
Members shall pay all employees a wage rate for normal hours worked, not including overtime, based on the higherof either the applicable legal minimum wage, plus associated statutory benefits, or the prevailing industry standards.
Wages paid on a performance-related basis shall not be less than the legal minimum wage for a normal working week.
Members shall ensure that comparable wages are given to all employees for carrying out work of equal value withprocesses to assess and remediate any potential wage disparity that discriminates against any category of workers.

Points to consider:• The legal minimum wage varies with region, type of facility and skill level of the worker: be careful to identify and understandthe applicable law in all countries of operation.
• If you have part-time workers, calculate pro rata wages for them based on full-time annual rates.
• Aim to ensure that the minimum wage you pay is high enough for workers to maintain a normal standard of living (that is,a ‘living wage’). A living wage is not always the same as the statutory minimum wage and can vary a lot between and withincountries (see box ‘Living wage’).

Living wage
The 1966 International Covenant on Economic, Social and Cultural Rights defines a wage that enables people to meettheir basic living needs as a universal human right. The covenant states that workers should be remunerated fairly, womenand men should be paid equally for the same work and that both should be able to make a decent living for themselves andtheir families. Yet, many workers do not earn this ‘living wage’, which makes them vulnerable to exploitation.
There are different methods for calculating and implementing living wages. The following resources include practicalguidance on both:• Ethical Trading Initiative, Living wage resources
www.ethicaltrade.org/issues/living-wage-workers/living-wage-resources• Iseal Alliance, How to measure living wage: 10 things you should know (2018)www.isealalliance.org/sustainability-news/how-measure-living-wage-10-things-you-should-know• WageIndicator Foundation
https://wageindicator.org/Wageindicatorfoundation• If you employ apprentices:•

Make sure they make at least minimum wage; do not use apprenticeships to pay workers lower wages or benefits.

•

Find out whether the local government has any extra requirements relating to young workers (because most apprentices
tend to be young).

RJC Code of Practices Guidance 145

Apprenticeships’ pay in India
In September 2014, the Indian Ministry of Labour and Employment amended the Apprenticeship Act detailing theminimum rate of stipend per month payable to trade apprentices for four years of training as follows:Year of training

Percentage minimum wage of semi-skilled worker

Year 1		

70%

Year 2		

80%

Year 3		

90%

Year 4		

90%

The Act is not specific to the gem and jewellery industry and some industry stakeholders consider that the minimum wage
for apprentices is set too high. This is because of the high costs associated with training apprentices who generally startout unskilled and because of the risks of damage to high value goods. The act is therefore not being fully implemented.
The table below tries to account for this by introducing some flexibility in assessing conformance with this provision. In allcases apprentice training records will need to be kept for the entirety of the apprenticeship.
Year of training

Conformance

Minor non-conformance

Major non-conformance1

Pay ≥ 70%—

Pay < 70%2

Pay ≥ 80%

Pay = 75% to 79%(and an annual rise in apprentice salary)

Pay < 75%
(or no annual rise in salary)3

Pay ≥ 90%

Pay = 75% to 89%(and an annual rise in apprentice salary)

Pay < 75%
(or no annual rise in salary)4

Pay ≥ 90%

Pay = 75% to 89%(and an annual rise salary)

Pay < 75%
(or no annual rise in salary)

Minor non-conformances must be addressed by the next RJC audit.
Source: Government of India. Ministry of Labour and Employment https://labour.gov.in/• If you use probationary or training periods for employment, make sure that:•these are legally allowed;•

the wage does not fall below the legal minimum applicable for that category of work; and•any substandard wages for this period are limited to a defined period of time that is strictly adhered to and clearlycommunicated to workers.

• If you pay workers by the hour, establish clear processes and procedures for calculating wages and use an effective time
management system to help ensure accuracy (see COP 16 Working hours).
• If you pay workers by piece, set a minimum daily production quota low enough to make it achievable by most workers within
an eight-hour shift. This will help ensure your workers don’t have to work beyond the normal working week, excluding
overtime, to earn a minimum wage (or the prevailing industry wage, whichever is higher).
• In all cases, make sure that wages:•

are paid regularly and in a timely manner; and•are paid equitably across all employees performing similar roles. You are expected to actively work to prevent any actualor perceived wage disparity based on gender, ethnicity, age, migrant status or any other demographic as outlined in COP
22.1 Non-discrimination. You should conduct annual wage reviews to identify pay gaps and address any potential paybased discrimination against vulnerable workers.

• Where payment of statutory benefits depends on registering employees into social insurance schemes and the like, you
are responsible for doing the necessary administration to ensure your workers receive their benefits in accordance withapplicable law.

146 RJC Code of Practices GuidanceProvident fund contributions in India
In 2011, two high courts in India, in two separate cases, ruled that various allowances paid by an employer to its
employees (including conveyance, education, food concession, medical, special holidays, night shift incentives and city
compensatory allowance) qualified as basic wages and must be included when calculating monthly provident (or pension)fund contributions. A Supreme Court case is underway.
In 2012, the Employees’ Provident Fund Organisation (EPFO), which administers India’s largest compulsory provident
fund scheme, issued a circular to clarify the basis for calculating contributions, and which appeared to corroborate thefindings of the two high court cases. The circular has been temporarily suspended since December 2012, pending further
investigation by the EPFO.
In view of EPFO’s ongoing efforts to clarify the process for calculating provident fund contributions, the RJC’s position isthat all members must justify their calculations to auditors and be able to show that these are based on applicable law.

COP 17.2: Overtime wages
Members shall reimburse overtime work at a rate at least equal to that required by applicable law or a collective
bargaining agreement or, where unregulated by either, at a premium rate at least equal to the prevailing industry
standards.

Points to consider:• It is important that you are aware of any applicable laws, collective bargaining agreements and industry standards, andcalculate overtime pay in accordance with these. See also guidance on COP 1 Legal compliance.
• If there is no applicable law or collective bargaining agreement (or if neither provides specific direction on overtime),
calculate overtime pay at a premium rate, that is, a higher rate than the normal working week rate. This should at least matchprevailing industry standards.
•

Note that ILO Convention 1 and Convention 30 set the rate of pay for overtime as not less than one-and-a-quarter times
the regular wage rate, which should be used as a benchmark in the absence of other regulation.

• Overtime pay benefits apply to workers and managers with a contract with defined hours; they may not be required for
managers who genuinely set their own work schedules.
• In most cases, overtime calculations are based on hours worked, so make sure you also follow the guidance for COP 16
Working hours.
• If you use a piece-rate pay scheme, calculating overtime pay can be very complex. A simple incentive system that provides
a higher flat rate for every piece beyond the production quota can be easier to understand, and therefore implement, forboth workers and managers. Alternatively, you can adopt a ‘monthly fixed rate’ system that sets a legal minimum wage basedon the average output of your workers in normal working hours and pays anything above this output at a higher rate as an‘incentive payment’.

COP 17.3: Method of payment
Members shall make wage payments to employees in accordance with the law that are:a. Regular and predetermined, and not delayed or deferred.
b. By bank transfer to an account controlled by the employee, or in cash or cheque form in a manner and location convenientto the employees.
c. Accompanied by a wage slip that clearly details wage rates, benefits and deductions where applicable, and is in a format
that employees can easily understand.
d. If employment agencies are used, members shall have systems to ensure equitable compensation and workplace
standards, and to ensure that wages are effectively received by employees, including migrant, contract, contingent andtemporary employees.

RJC Code of Practices Guidance 147

Points to consider:• Pay your workers regularly and reliably. That means making sure that you:•comply with any relevant national laws and regulations on frequency of remuneration;•

establish clear procedures for calculating, checking and distributing wages;•

use a bank transfer to an account controlled by the worker, cash or cheque to pay workers; and•pay wages directly to your worker, and not to a third party.

• You cannot offer promissory notes, coupons or merchandise in lieu of wages. This is because promissory notes allow
payments to be delayed; and vouchers or coupons can force workers to buy specifically from the company-owned store,
limiting their choices and tying them to their employer. Payment should be made in a timely manner so that workers do nothave to stay for a prolonged period to receive backwages.
• Your workers should be able to understand how their wages are calculated and be able to report any incorrect payments
without fear of retaliation. To that end:•

Stipulate the level of wages and how they will be paid in all employment contracts.

•

Give your workers regular wage slips that clearly show and explain the rates of pay, as well as any benefits paid or
deductions made.

•Train your workers in how to read these wage slips.

•

Establish a clear process for reviewing and correcting payment errors and communicate it to your workers so that theyknow what to do if their wages have been incorrectly calculated.

• Your workers should not be obliged to travel any significant distance, or incur costs, to collect their pay.
• You are expected to keep time, wage and leave records (see COP 15 General employment terms).

COP 17.4 and 17.5: Deductions
17.4 Members shall only make deductions from wages if these deductions:a. Comply with the law and, if applicable, are governed by collective bargaining agreements.
b. Are determined and calculated following a documented due process that is clearly communicated to employees.
c. Do not result in an employee making less than the minimum wage.
17.5 Members shall not make deductions for disciplinary purposes.

Points to consider:• All deductions must:•

be determined by due process;•be accurately calculated and administered according to applicable law;•

be communicated to employees as part of their employment contract; and•must not result in an employee receiving wages below the minimum wage.

• Acceptable deductions under the COP include those that are either required or permissible by law.
•

Common legally required deductions include taxes, health care and social insurance. They may also include lawful
garnishments, where employers are required to deduct funds from employees’ wages, for example as a result of a court orderto pay off a debt. (Note that lawful garnishments are subject to applicable law and fall outside the scope of provision 17.4b.)•

Common legally permissible deductions include transportation, meals, medical assistance, childcare, union fees, loan
repayments and lodging.

• Unacceptable deductions under the COP include:•

Recruitment fees, either to the employer or to an agency.

•

Charges for personal protective equipment, which must be provided free of charge to comply with COP 23.6 Healthand safety.

•

Any form of deposit or advance on equipment.

•

Deductions as a disciplinary measure for employee behaviour.

• Voluntary deductions—for example, to pay back a loan voluntarily taken from the employer—fall outside the scope of
COP 17.4.

148 RJC Code of Practices GuidanceCOP 17.6: Provisions and services
Members shall not force employees to buy provisions or services from their own business or facilities; where there is noalternative, members shall not charge excessive rates for these.

Points to consider:• Forcing your workers to buy provisions from you can be a form of bonded labour, as outlined in COP 20 Forced labour, andcan undermine the intent of proper remuneration practices.
• If your employees have limited access to provisions and services at work, for example in isolated mines or factories, makesure provisions are charged at an affordable price. Buying provisions at work should not result in an employee earning lessthan the minimum wage.

COP 17.7: Loans
Members that provide wage advances or loans shall ensure that the interest and repayment terms are transparent andfair, and not deceptive to the employee.

Points to consider:• Make sure that any wage advances or loans you offer workers comply with applicable law.
• Compare your interest rates and terms for repayment with those offered by other available sources of credit to make surethey are fair and not excessive.
• Do not let the repayment period for a loan exceed the term of your employee’s employment contract, as this can be a form ofbonded labour, which is prohibited under COP 20 Forced labour.
• Both you and your employee will need to sign an advance written agreement on the terms and conditions of the loan and its
repayment.
•

You should both receive signed copies of the loan agreement and keep your copy in the employee’s personal file as part ofyour record-keeping process.

COP 17.8: Benefits
Members shall ensure that all benefits are given to employees in accordance with applicable law.

Points to consider:• Review local law and identify the legal requirements on all benefits, including maternity, paternity and childcare benefits.
Compare these with what you currently offer workers and adjust your policy and practice to comply with (or go beyond)applicable law.
• Inform workers of which benefits are legally required and which are additional ones provided by you. This will help ensure
workers know you are abiding by the law, while helping you retain staff.

RJC Code of Practices Guidance 149

Check:■■Can you show that your workers understand their wage payments?
■■Do your employment contracts accurately detail all benefits (that is, standard wage rate, overtime wage rate, piece-rate
information, deductions, paid holiday and annual leave)?

■■Can you show that workers’ wages are paid directly, accurately, regularly and in a timely manner, by bank transfer,cheque or cash?

■■Do payments for normal working hours and overtime comply with local law and collective bargaining agreements?
■■Can you show that all deductions are legal, communicated to the worker and verified to ensure a worker isn’t earning
less than minimum wage?

■■Are your employees forced to buy provisions from you? If you sell provisions to employees, are they sold at a reasonable
rate that does not result in employees earning less than minimum wage?

■■If you provide wage advances or loans, can you show the auditor that the repayment terms are transparent, fair and do
not lead to debt bondage?

■■Do you keep signed copies of all loan agreements?
■■Do you provide legally mandated parental and childcare benefits?

E Further information
Websites
ILO, Resource Guide on Minimum Wages
www.ilo.org/inform/online-information-resources/resource-guides/minimum-wages/lang--en/index.htm
ILO, Working Conditions Laws Databasewww.ilo.org/dyn/travail/travmain.home

Publications
Ethical Trade Initiative (ETI), Base Code Guidance: Living Wages
https://www.ethicaltrade.org/sites/default/files/shared_resources/eti_living_wage_guidance_2.pdf
ETI, Living Wages in Global Supply Chains: A New Agenda for Business (2015)
www.ethicaltrade.org/sites/default/files/shared_resources/living-wages-in-global-supply-chains.pdf
ILO, C100—Equal Remuneration Convention (1951)
www.ilo.org/ilolex/cgi-lex/convde.pl?C100
Oxfam, Steps Towards a Living Wage in Global Supply Chains (2014)
https://oxfamilibrary.openrepository.com/bitstream/handle/10546/336623/ib-steps-towards-living-wage-global-supplychains-101214-en.pdf;jsessionid=04ECE190A8F4EF6DF91733D8A5754261?sequence=1
SAI, Guidance Document for Social Accountability 8000 (SA8000®:2014) (2016)www.sa-intl.org/index.cfm?fuseaction=document.viewDocument&documentid=563&documentFormatId=1166&vDocLinkOr
igin=1&CFID=22979020&CFTOKEN=2db102a753d2089b-A258963B-1C23-C8EB-80C2745C596B15C8150 RJC Code of Practices Guidance(COP 18) Harassment, discipline,
grievance procedures and nonretaliation
A Definitions and applicability
This provision applies to all RJC members.
Active communication means using appropriate methods and frequency for relaying information that enable the receptor toeffectively understand and act on the information.
Disciplinary procedures are a set way for dealing with disciplinary issues. They make sure that a company’s standards ofconduct and performance at work are followed. They also provide a fair and humane method of dealing with workers who failto meet these standards.
Employees include both directly employed workers that have contracts with the RJC member and indirectly employed workers
that regularly work at members’ sites and that have employment contracts with a third party, such as a labour agent, labour
provider or contractor/subcontractor.
Grievance mechanisms are formal complaint processes for individuals, workers, communities and/or civil society organisations
adversely affected by business activities and operations to report their grievances for investigation and remediation asnecessary. For this provision, a grievance mechanism refers to the means by which employees can raise concerns about
workplace-related conditions. They are defined through an internal set of defined protocols that are collectively referred to as
the grievance procedures.
Harassment is any type of unwelcome conduct from a boss, co-worker, group of co-workers, customer or vendor whose
actions, communication or behaviour mocks, demeans, puts down, disparages or ridicules an employee. Physical assaults,
threats and intimidation are severe forms of harassment.
Retaliation1 is any kind of negative action taken against an employee as a result of reporting a grievance. This includes any
form of punishment and any action that creates a hostile, threatening or uncomfortable environment.
Vulnerable workers are specific groups of people, such as women, migrants, people with disabilities, ethnic or religious groups, thatexist within a larger population and that are at higher risk of being harassed, exploited or in any other way discriminated against.
Workplace discipline is the means used to correct or improve job-related behaviour or performance.
Source:• Sedex Supplier Workbook (2014)
https://cdn.sedexglobal.com/wp-content/uploads/2016/09/Sedex-Supplier-Workbook-2014-version-Web.pdf

B Issue background
Harassment
Preventing harassment in the workplace is part of creating decent working conditions for employees and protecting workers’
rights to a safe working environment. Harassment comes in many different forms, from a single supervisor publicly shouting at
a worker to a group of workers consistently harassing someone because of their gender, religion or ethnicity.
More severe forms of harassment include intimidation, threats and physical or sexual violence. But harassment can also comein seemingly benign communications that are not made in anger, such as jokes or comments on appearance or lifestyle (seebox ‘Sexual harassment in the workplace’). Harassment can also be indirect, for example conduct, remarks or malicious gossip
about an employee shared between people behind the employee’s back. Third parties observing sexual harassment can also
be the victim of the harassment. It’s important for employers to understand the different forms of possible harassment inorder to create a non-hostile working environment. It’s also important to be aware that some workers are more vulnerable
to harassment in the workplace and that vulnerability can vary acrosss pace and culture. RJC does not tolerate any form ofharassment or violence, regardless of severity.

1

In some jurisdictions, this may be known as ‘victimisation’.

RJC Code of Practices Guidance 151

Companies play a vital role in addressing harassment by setting and enforcing responsible workplace standards and policies todrive behaviour change. Investing in workforce education to help workers and supervisors understand what harassment is andwhy it cannot be tolerated is a critical step towards creating a harassment-free work environment. But it is just as important toinvest in training and empowering workers to speak up if they experience or witness violence or harassment in the workplace.
Employers are responsible for creating an environment that not only encourages employees to speak up, but ensures noretaliatory actions will result. Employers should also consider what extra protection is needed for vulnerable workers.

Sexual harassment in the workplace
The International Labour Organization (ILO) defines sexual harassment as a sex-based behaviour that is both unwelcome
and offensive to its recipient. It can take two forms:
1. Quid pro quo, in which a job benefit—such as a pay rise, a promotion or even continued employment—is madeconditional on the victim acceding to demands to engage in some form of sexual behaviour.
2. Hostile working environment in which the harassment behaviour creates conditions that are intimidating or humiliating
for the victim.
Sexual harassment in the workplace can be both physical and psychological. It includes behaviours that are:• Physical: for example, physical violence, sexual assault, touching, unnecessary close proximity.
• Verbal: for example, comments and questions about appearance, lifestyle or sexual orientation, offensive phone calls,
inappropriate ‘jokes’.
• Non-verbal: for example, wolf whistling, making sexually suggestive gestures, displaying sexual materials.
While men and boys can experience sexual violence and harassment, the vast majority of victims are women and girls.
Creating harassment-free workplaces is critical to achieving decent work for all and gender equality.
Sources:• ILO, Ending Violence and Harassment Against Women and Men in the World of Work (2018)www.ilo.org/ilc/ILCSessions/107/reports/reports-to-the-conference/WCMS_553577/lang--en/index.htm• ILO, Sexual Harassment at Work: Fact Sheetwww.ilo.org/wcmsp5/groups/public/---ed_norm/---declaration/documents/publication/wcms_decl_fs_96_en.pdf

Discipline
For companies to operate effectively, they need clearly defined, and fully respected, standards for performance and conduct.
Cases of minor misbehaviour or unsatisfactory performance can be best dealt with informally: a quiet word is often all that isneeded to improve an employee’s conduct or performance. It is also important to ensure that the complainant (if there is one) is
informed of your actions as a result of the complaint.
In cases that require formal disciplinary action, the type of action that is reasonable or justified will depend on the specificcircumstances. But in all cases, managers should act promptly, fairly and consistently. And in all cases, discipline in the workplaceshould only ever be seen as a way to correct problem behaviours or performance issues, not as a way to punish employees.
Unfortunately, in some workplaces discipline can take on extreme forms of abuse, including physical (corporal punishment),
mental, psychological, verbal or sexual abuse. Documented examples of unreasonable disciplinary practices include employees
being yelled at or shamed; forced to do push-ups or run laps; made to stand in the sun for extended periods; beaten or hit;threatened with violence; sexually or racially harassed; or denied wages, food or services. All of these, or similar actions, areconsidered to violate basic human rights.

Grievance procedures and non-retaliation
If workers are harassed, disciplined inappropriately, paid incorrectly or treated unfairly, they should be able to report theirgrievances through a confidential channel for their employer to review and address appropriately. These channels, calledgrievance mechanisms or procedures, create an effective avenue for companies to receive, process and provide adequate
response or remedy for grievances raised by employees.
A grievance mechanism can only really serve its purpose if people know it is there, know how to use it and trust that it works
fairly. The UN Guiding Principles on Business and Human Rights sets out eight criteria for designing an effective grievancemechanism that can do this, ranging from making the process legitimate and accessible to ensuring it is rights-compatible androoted in engagement (see Figure 18.1).
In all cases, it is important that nobody suffers negative consequences from raising a grievance.

152 RJC Code of Practices GuidanceConsultative

Legitimate

drawing on engagement withaffected stakeholders andrelevant experts

meaning fair andtrustworthy

Accessible

A learning
platformfor organisations
to improve theirsystems

to all those they
are designed for

Effective
grievancemechanism

Compatible

Predictablewith international
human rights
standards andlocal laws

in terms of process
and available
outcomes

Transparent

Equitable

about the process andprogress of responding
to grievancesin providing fair and equal
access to information,
advice and expertise

Figure 18.1. Characteristics of an effective grievance mechanism

C Key regulations, standards and initiatives
International standards
Both the 1948 Universal Declaration of Human Rights (UDHR)2 and the 1966 International Covenant on Civil and Political
Rights3 prohibit torture or ‘cruel, inhuman or degrading treatment or punishment’. Article 23 of the UDHR further states thateveryone has the right to ‘just and favourable conditions of work’.
The 1975 Declaration on the Protection of All Persons from Being Subjected to Torture and Other Cruel, Inhuman or
Degrading Treatment or Punishment4 states that ‘any act of torture or other cruel, inhuman or degrading treatment or
punishment is an offence to human dignity and shall be condemned as a denial of the purposes of the Charter of the United
Nations and as a violation of the human rights and fundamental freedoms proclaimed in the Universal Declaration of
Human Rights’.
These treaties and declarations have been ratified by most UN member states.
The ILO is reviewing gaps in legal protections against violence and harassment in the workplace. As part of its efforts, it isconvening members to discuss a new international legal instrument—which might be a convention, a recommendation or somecombination of both—to protect workers.

2

UN, Universal Declaration of Human Rights (1948) www.un.org/en/universal-declaration-human-rights

3

UN, International Covenant on Civil and Political Rights (1966) www.ohchr.org/en/professionalinterest/pages/ccpr.aspx

4UN, Declaration on the Protection of All Persons from Being Subjected to Torture and Other Cruel, Inhuman or Degrading Treatment or Punishment (1975)www.ohchr.org/en/professionalinterest/pages/declarationtorture.aspx

RJC Code of Practices Guidance 153

National law
Many countries prohibit corporal punishment, usually within their constitutional framework. Some countries also havelegislation specifically aimed at employers about disciplinary practices, abuse, harassment and grievance procedures. RJC
members are expected to know the legal requirements in all countries where they operate.

D Implementation guidance
COP 18.1: No violence or harassment
All forms of violence and harassment in the workplace are prohibited, including but not limited to corporal punishment;harsh or degrading treatment; sexual or physical harassment; mental, physical, verbal or sexual abuse; retaliation;
coercion; and intimidation. Both direct and indirect harassment in any form is not acceptable in workplace facilities.
Members shall ensure that employees are treated with dignity and respect and are not subjected to harassment orviolence, or threatened with these towards themselves, their family or colleagues.

Points to consider:• Make sure you have policies that prohibit all forms of violence and harassment in the workplace; and communicate thisinformation to supervisors and workers.
• Your policy must be supported by written procedures. Together they should define and address direct and indirectharassment, as well as harassment that can occur outside the workplace. This should include things like business trips
or social events (for example, after-work drinks) and non-work-related communications between co-workers (sharing
messages and photos).
• Your policies and procedures for addressing gender-based violence should focus on helping victims, preventing any further
harm to them and having disciplinary measures for perpetrators. That includes disallowing retaliation against victims andgiving victims flexibility in their ability to take leave or other related benefits that help safeguard them.
• To effectively address gender-based violence, your policy should also:•

respect the confidentiality of the situation;•defer to the victim’s assessments of safety wherever reasonably possible; and•actively promote prevention and awareness training.

• Use a risk assessment to help you identify training needs for supervisors and workers on acceptable workplace behaviours
and on how to report grievances.
• Help create a positive work environment by removing offensive, explicit or pornographic materials such as calendars,
posters or literature from the workplace.
• Carry out periodic audits to monitor the working environment and incidence of sexual harassment. This can be internal
audits. For smaller companies, this can be a relatively straightforward periodic internal check.

154 RJC Code of Practices GuidanceUnacceptable behaviours
Below are some examples of workplace harassment and abuse; all are considered unacceptable behaviours.
• ‘Staring’ or standing too close to the opposite sex.
• Inappropriately touching hands, arms or hair.
• A man intentionally brushing up next to a woman in a queue.
• A man touching a woman’s breasts.
• Making inappropriate comments about a woman’s or man’s appearance, body or sexual habits.
• Asking for sexual favours in return for something (for example, overtime or job security).
• Forced kissing or fondling.
• Coercive sex (rape).
• Using sexually explicit language.
• Abusive name-calling (for example, ‘prostitute’ or ‘slut’).
• Verbal abuse or use of foul language.
• Shouting, with the intent to demean, bully or intimidate.
• Pushing, pulling, hitting or shoving someone of the opposite sex.
• Pulling hair.
• Slapping, pinching, pricking with pins.
• Displaying sexually explicit pictures on the wall.
• Sending abusive or sexual messages, photographs or images by phone, email or social media.
Source:• ILO International Training Centre, Gender-Based Violence in Global Supply Chains: Resource Kit (2013)https://gbv.itcilo.org/index.php/index.html#home-index

COP 18.2: Key staff training
Doctors, nurses and key personnel among security staff, managers or others shall be regularly trained to recognise
signs of gender-based violence and understand relevant laws and organisational policies.

Points to consider:• Managers, medical professional and other key personnel can be uniquely placed to help prevent and address violence in theworkplace (including gender-based violence). It is critical that these people are trained to help identify victims of workplace
violence who may not feel safe reporting incidents through the grievance procedures.
• Identify the relevant key staff who are best positioned to help prevent violence and hostile environments in the workplaceand focus training on them (see box ‘Practical training references’).
• Consult with local organisations and law enforcement to identify and understand:•all relevant laws related to gender-based violence;•

local and national victim support services available; and•requirements for reporting incidents to local authorities.

RJC Code of Practices Guidance 155

Practical training references
A practical reference for recognising gender-based violence is the ILO’s toolkit with case studies and implementation
guidance. Module 6 covers practical ways to identify, monitor and report on gender-based violence and sexual
harassment, with a specific focus on low- and non-unionised workplaces.
Sources:• ILO International Training Centre, Gender-Based Violence in Global Supply Chains: Resource Kit (2016)
https://gbv.itcilo.org/
Other sources with indicators for medical professionals include:• UNFPA, A Practical Approach to Gender-Based Violence: A Programme Guide for Health Care Providers and Managers(2001) www.who.int/hac/techguidance/pht/gbv_a_programme_guide_health_care.pdf• UNFPA and WAVE, Strengthening Health System Responses to Gender-Based Violence in Eastern Europe and Central
Asia (2014) https://eeca.unfpa.org/sites/default/files/pub-pdf/WAVE-UNFPA-Report-EN.pdf

COP 18.3: Disciplinary process
Members shall clearly and actively communicate their disciplinary process and related standards on appropriate
disciplinary procedures and employee treatment, and apply these equally to all management and staff.

Points to consider:• Develop a written policy and procedures for disciplinary action, outlining the legal and company-specific penalties fordifferent types of inappropriate action, both in terms of worker and supervisor behaviour. Make sure you proactively
communicate it with your employees.
• Make a senior management function, such as human resources, responsible for discipline and grievance procedures; and strictly
prohibit anyone else from disciplining employees. Security guards and the military, in particular, should not be allowed to
discipline the workforce; their role must be clearly limited to safeguarding the premises and the personnel and product therein.
• Disciplinary measures, if and when required, should be applied consistently and fairly among all employees.
• Never use discipline to punish, humiliate or intimidate your workers. Instead, use it to promote and encouragea high standard of personal conduct. In particular, your disciplinary measures must not include:•

any deductions to wages (see COP 17 Remuneration);•

retaliation for submitting a grievance or complaint;•compulsory labour as a punishment; or•punishment for taking part in a strike (unless there has been serious misconduct or criminal acts). Note that in this case,‘punishment’ includes deducting wages beyond that corresponding to time lost during a strike, terminating or failing to
renew workers’ contracts, reducing benefits or seniority, and imposing heavier workloads.

• The risks of inappropriate disciplinary measures may be higher or more evident in specific countries, sectors or roles (such as
security provision). Do a risk assessment to identify risks in your operations.
• In all cases, establish a series of escalating steps for disciplinary procedures to remediate unacceptable behaviour or
performance. This should begin with verbal and written warnings before progressing to more serious disciplinary action,
unless the seriousness of the offence warrants immediate escalation.
• Train your staff—especially those in any position of authority—on how to manage disciplinary issues appropriately. Include
explicit training on what type of discipline, and by who, is and is not allowed, and what the penalties are for breachingdisciplinary procedures.
• Make sure workers are aware of the disciplinary procedures as part of new-hire and regular employee training.
• When subject to disciplinary action, workers have the right to know why they are being disciplined and the right to defend
themselves. In practice, that means you must, in all cases and without any negative consequences:•

give the worker details of the allegations;•provide an opportunity for them to respond to allegations, and to appeal any disciplinary decisions; and•allow them to consult with, or be represented by, a trade union (or other chosen person).

• If misconduct is alleged, give the worker time to prepare a defence.
• Make sure you have a robust system for keeping records of any verbal and written warnings, suspensions and dismissals
within employee files.

156 RJC Code of Practices GuidanceCOP 18.4: Grievance procedures
Members shall have clear, confidential and unbiased grievance procedures and investigation processes and actively
communicate these to all employees.
a. Employees acting individually or with other workers shall be free to submit a grievance without suffering any penalty or
retaliation.
b. Grievance procedures shall be designed to function effectively and reach a timely outcome.
c. Records shall be kept of employee grievances raised, investigation processes and outcomes.
d. The selection of individuals to manage and assess the grievances shall be sensitive to the situation and strive to ensure
gender balance.

Points to consider:• Establish procedures for workers to raise grievances; at minimum, these must ensure the confidentiality and anonymityof the person raising the grievance and protect them from retaliation. They will need to involve your human resources
department. For this reason, your grievance procedures for workers will likely have to be different from those used forexternal stakeholders to meet requirements of COP 6 Human rights, COP 32 Stakeholder engagement and COP 7 Due
diligence for responsible sourcing from conflict-affected and high-risk areas.
• Your grievance procedures should reflect the size and scale of your operations, and the needs of your workers and local
communities. In all cases, they should meet the effectiveness criteria set out by the UN Guiding Principles (see Figure 18.1),
and must define:•

how workers and individuals can file grievances;•

how management investigates grievances and decides how to remedy them;•

how management communicates the outcomes after a grievance investigation; and•ow outcomes are documented and kept confidentially.

• Think carefully about who will receive and investigate grievances. Whoever it is should be a trusted person, equipped with
the necessary cultural and gender sensitivity to meet the needs of vulnerable populations in the workplace that are more
likely to receive unfair treatment. The person must be trained and empowered to make decisions, or at least have access todecision-makers. In some cases, the person may operate outside your business.
• Your grievance procedures should be inclusive of all who may wish to use them. To that end, make sure you:•train all supervisors and workers on the procedures, and specifically on how to raise a grievance or concern;•make communications about grievance procedures available in languages that all workers understand;•let workers be accompanied by a fellow worker or union official during formal processes; and•allow non-employees to submit grievances about the workplace and give them the same level of confidentiality andprotection from retaliation as employees.

• Record-keeping is critical to demonstrating that you have fair and effective grievance procedures: keep an accurate andupdated record of all grievances and follow-up actions. To protect the confidentiality of those raising grievances, make surethese records are kept in a secure location.
• Review the effectiveness of your grievance procedures regularly, and update them accordingly, to ensure workers andcommunity members remain confident in using them (see box ‘Assessing grievance procedures’).

Assessing grievance proceduresSome ways for you to assess the effectiveness of your grievance procedures include:• Review grievances. Look through all the grievances received and take note of how many there are, what they are about,
who submitted them and what the outcomes were.
• Consult stakeholders. Talk to your managers, workers and local community members to get their perspective on how
well your grievance procedures work and how they can be improved.
• Use effectiveness criteria. Consider your grievance procedures against each of the UN Guiding Principles’ effectivenesscriteria to identify and address any gaps.
Source:• Ergon Associates, Access to Remedy—Operational Grievance Mechanisms (2017)https://ethicaltrade.org/sites/default/files/shared_resources/ergon_-_issues_paper_on_access_to_remedy_and_operational_grievance_mechanims_-_revised_draft.pdf

RJC Code of Practices Guidance 157

COP 18.5: Non-retaliation policy
Members shall have a policy and management systems to avoid retaliation for individuals filing complaints or engaging
with the grievance procedure, in line with COP 2 (Policy and implementation).

Points to consider:• Make sure you have a policy prohibiting retaliation. This can be a stand-alone policy, or part of an overarching company
policy (as part of COP 2 Policy and implementation).
• Either way, you should have procedures in place to support your non-retaliation policy.
• If you have any concerns that someone raising a grievance will suffer retaliation, make extra efforts to prevent this fromhappening. That might include adjusting the person’s working hours or reassigning them to another supervisor.

Check:■■Do you have policies that prohibit retaliation, harassment and violence in the workplace; and have those been
implemented and communicated to workers and supervisors?

■■Can you show that key personnel have been trained to recognise signs of gender-based violence?
■■Have supervisors and security personnel been trained on appropriate disciplinary procedures and what types of
discipline are not acceptable?

■■Can you show that security guards are not allowed to discipline workers?
■■Do you keep records of disciplinary actions in employee records?
■■Can you show that workers know in advance what allegations are being made against them, and that they have a rightto defend themselves?

■■Can you show that your grievance procedures meet the UN Guiding Principles’ effectiveness criteria?
■■Does your facility keep investigation records of submitted grievances in a secure location to protect confidentiality?
■■Are the people responsible for reviewing grievances properly trained?

E Further information
Websites:Acas (Advisory, Conciliation and Arbitration Service), Disciplinewww.acas.org.uk/index.aspx?articleid=1774
Chartered Institute of Personnel and Development, Discipline and Grievance at Work
www.cipd.co.uk/subjects/emplaw/discipline/disciplingrievprocs.htm
UN Human Rights, Convention Against Torture and Other Cruel, Inhumane or Degrading Treatment or Punishment.
www.ohchr.org/en/professionalinterest/pages/cat.aspx
Verité, An Introduction to Grievance Mechanisms
https://helpwanted.verite.org/node/735/lightbox2

158 RJC Code of Practices Guidance(COP 19) Child labour
A Definitions and applicability
This provision applies to all RJC members and applies to directly employed workers and indirectly employed workers who
regularly work at members’ sites.
A child is anyone under the age of 18, as defined by the UN Convention on the Rights of the Child.
Child labour is defined as work done by children that deprives them of their childhood, potential and dignity, and that isharmful to their social, physical and mental development. In particular, it refers to work that:• is mentally, physically, socially or morally dangerous and harmful to children;• deprives them of the opportunity to attend school;• obliges them to leave school prematurely; or• requires them to attempt to combine school attendance with excessively long and heavy work.
Hazardous work is any work that puts a child’s (or young worker’s) physical or psychological well-being at risk because of
the nature of the work or the conditions under which it is carried out. Based on International Labour Organization (ILO)
Recommendation 190, this includes:• work that exposes children to physical, psychological or sexual abuse;• work underground, under water, at dangerous heights or in confined spaces;• work with dangerous machinery, equipment and tools, or which involves the manual handling or transport of heavy loads;• work in an unhealthy environment, for example one that exposes children to hazardous substances, agents or processes, orto temperatures, noise levels or vibrations damaging to their health; and• work under particularly difficult conditions such as long hours, night work or work that unreasonably confines children to
the employer’s premises.
Light work is not likely to harm the health or development of children, and does not prejudice their attendance at school,
their participation in legitimate vocational orientation or training programmes, or their capacity to benefit from the
instruction received.
The minimum working age as defined by ILO Convention 138 is 15 years, or statutory school-leaving age, whichever is higher.
This age can vary by country.
Night is defined as the consecutive hours between 8 p.m. and 8 a.m. Under ILO Convention 33, young workers are not allowed
to work at night.
The worst forms of child labour are defined by ILO Convention 182 as:• all forms of slavery or practices similar to slavery, such as the sale and trafficking of children, debt bondage and serfdom, andforced or compulsory labour, including forced or compulsory recruitment of children for use in armed conflict;• the use, procuring or offering of a child for prostitution, for the production of pornography or for pornographic performances;• the use, procuring or offering of a child for illicit activities, in particular for the production and trafficking of drugs as definedin the relevant international treaties; and• work that is likely to harm the health, safety or morals of children. This includes hazardous work as defined above.
Young workers are those under 18 but over the minimum working age.

RJC Code of Practices Guidance 159

Sources:• ILO, C138—Minimum Age Convention (1973)
www.ilo.org/dyn/normlex/en/f?p=NORMLEXPUB:12100:0::NO::P12100_ILO_CODE:C138• ILO, C182—Worst Forms of Child Labour Convention (1999)
www.ilo.org/dyn/normlex/en/f?p=NORMLEXPUB:12100:0::NO::P12100_ILO_CODE:C182• ILO, R146—Minimum Age Recommendation (1973)
www.ilo.org/dyn/normlex/en/f?p=NORMLEXPUB:12100:0::NO::P12100_ILO_CODE:R146• ILO, R190—Worst Forms of Child Labour Recommendation (1999)
www.ilo.org/dyn/normlex/en/f?p=NORMLEXPUB:12100:0::NO:12100:P12100_INSTRUMENT_ID:312528:NO• ILO, What Is Child Labour
www.ilo.org/ipec/facts/lang--en/index.htm• UN Human Rights, Convention on the Rights of the Child (1989)
www.ohchr.org/en/professionalinterest/pages/crc.aspx

B Issue backgroundChild labour is one of the highest-profile and most widely condemned social performance issues. And yet it is still widespreadin many parts of the world. The ILO’s 2017 global report on child labour found that some 152 million children (aged 5–17)
across the world were still trapped in child labour, with 73 million in hazardous work.1

Child labour in mineral supply chains
Of the 152 million children in child labour in the world, about a million work in mining or quarrying in gold, tin, coal,diamonds, gems, stone and salt mines. Almost all child miners work in artisanal and small-scale mining (ASM).
Many experts agree that there is very little, if any, work in mining that would not be considered ‘hazardous’ underinternational law. For example, working underground, working with dangerous machinery, carrying heavy loads andworking with toxic substances, which are common in the mining sector, are all hazardous work. Mining is also by far themost deadly category of ‘hazardous work’ for children: according to the OECD, it has an average fatality rate of 32 per
100,000 full-time worker equivalents for children aged 5 to 17.2 In addition, children in some ASM communities are notalways adequately safeguarded, and sexual and physical abuses can be a risk. This can take the form of sexual exploitationin exchange for protection in a dangerous mining situation, sexual violence in the community or sexual violence in thehome where children are left behind while their parents mine (see COP 6 Human rights).
The complex drivers behind child labour in ASM are rooted in poverty. They include things like a need or desire toaccess cash quickly to cope with household emergencies, seasonal costs (such as schooling costs) or chronic poverty. To
learn more about how to identify and address child labour in the mineral supply chain, see: OECD, Practical Actions for
Companies to Identify and Address the Worst Forms of Child Labour in Mineral Supply Chains (2017)www.oecd.org/daf/inv/investment-policy/child-labour-risks-in-the-minerals-supply-chain.htm
2

It is important to understand the context in which child labour occurs and the impacts it can have. There are various reasons
why children enter employment; financial need is the most common. Families in marginal economic circumstances may dependon children earning incomes.
But child labour ultimately impedes economic growth and development. It deprives children of the opportunity to be educatedfor productive and decent work, often consigning them to low-paying and unskilled jobs in adulthood. Child labour can also
have a negative effect on adult working conditions, creating a downward pressure on wage levels and leading to increased
adult unemployment rates. This in turn reinforces poverty and lack of development, circumstances that drive child labour inthe first place.
These complexities and interrelated factors mean that addressing child labour is rarely a simple matter of removing children
from the workforce. Efforts to tackle child labour must be approached with an understanding of the economic drivers at hand,and a sensitivity to the alternatives available.

1

ILO, Global Estimates of Child Labour: Results and Trends, 2012–2016 (2017)www.ilo.org/wcmsp5/groups/public/@dgreports/@dcomm/documents/publication/wcms_575499.pdf

2

OECD, Practical Actions for Companies to Identify and Address the Worst Forms of Child Labour in Mineral Supply Chains (2017)https://mneguidelines.oecd.org/Practical-actions-for-worst-forms-of-child-labour-mining-sector.pdf

160 RJC Code of Practices GuidanceC Key regulations, standards and initiatives
International standards
The ILO leads the world’s efforts to set standards for child labour through two major conventions: the Minimum Age
Convention 138 (1973)3 and the Worst Forms of Child Labour Convention 182 (1999).4 These are summarised below. Even if
ILO member states have not ratified either of these ‘core’ conventions, they are still bound to promote the effective abolition ofchild labour through the 1998 ILO Declaration on Fundamental Principles and Rights at Work (www.ilo.org/declaration).
The ILO Minimum Age Convention 138 (ILO C138) offers the most comprehensive and authoritative international definitionof minimum working age, which it sets at 15 years or statutory school-leaving age, whichever is higher. Exceptions to this ruleare made for:• hazardous work, which carries a higher minimum working age of 18 (in exceptional circumstances, countries can, under ILO
C138, allow hazardous work from 16, provided that the health, safety and morals of the young persons concerned are fully
protected and that they have received adequate specific instruction or training);• light work, which carries a lower minimum working age of 13 (factors to consider in determining whether a particular job
constitutes light work for a child relate to whether the work is likely to be harmful to their health or development andincludes hours of work, school attendance and performance, participation in vocational orientation or training, and theworking environment); and• countries whose economy and educational facilities are insufficiently developed, in which case the minimum working age canbe initially reduced to 14 years.
Through ILO C138, countries are required to set the minimum age for entry into work or employment and to establish national
policies to eliminate child labour. The convention also defines a range of protections for young persons that are older than theminimum working age but are still under 18.
ILO C138 does not apply to work done by children in schools as part of their education or training. Nor does it apply to work
done by children at least 14 years old in businesses, provided that the work is part of a school or training institution programmeor is a government-approved apprenticeship.
The ILO Worst Forms of Child Labour Convention 182 (ILO C182) calls on countries to prohibit and eliminate the worst
forms of child labour; it applies to all children under 18. Through ILO C182, countries are also required to define in law what
constitutes ‘hazardous work’, and to find ways to monitor how the convention is applied.
Beyond the ILO, international efforts to protect against child labour include:• The Convention on the Rights of the Child,5 which was adopted by the UN General Assembly in 1989, and which spells
out the basic human rights to which children everywhere are entitled, such as the right to survival and the right to thedevelopment of their full physical and mental potential.
• The UN Guiding Principles on Business and Human Rights,6 which sets out companies’ responsibilities to respect all humanrights, including the right to be free from child labour. Under these principles, companies must avoid causing or contributing
to child labour through their own activities; they must also seek to prevent and mitigate child labour that is directly linked totheir operations, products or services by their business relationships, such as suppliers. If instances of child labour are found,companies also have a duty under the UN Guiding Principles to ensure the affected children have access to effective remedy.
This requires careful consideration of how best to rehabilitate children away from the workplace in a way that enables themto return to school. More information about the UN Guiding Principles and the RJC’s expectations for remedy and humanrights due diligence are outlined in COP 6 Human rights.

National law
Most countries have national legislation establishing a minimum working age, often with particular provisions for different
sectors (see box ‘Child labour law in India’).

3

ILO, C138—Minimum Age Convention (1973) www.ilo.org/dyn/normlex/en/f?p=NORMLEXPUB:12100:0::NO::P12100_ILO_CODE:C138

4

ILO, C182—Worst Forms of Child Labour Convention (1999) www.ilo.org/dyn/normlex/en/f?p=NORMLEXPUB:12100:0::NO::P12100_ILO_CODE:C182

5

UN Human Rights, Convention on the Rights of the Child (1989) www.ohchr.org/en/professionalinterest/pages/crc.aspx

6

UN Human Rights, Guiding Principles on Business and Human Rights (2011) www.ohchr.org/Documents/Publications/GuidingPrinciplesBusinessHR_EN.pdf

RJC Code of Practices Guidance 161

Child labour law in India
On 28 August 2012, the Union Cabinet of India approved amendments to the Child and Adolescent Labour (Prohibition andRegulation) Act, 1986. The Act bans all forms of child labour under the age of 14 and makes the employment of these children
a criminal offence. The Act further prohibits the employment of children (or ‘adolescents’) aged 14–18 in hazardous work.
Under the 2012 Amendment Bill, ‘hazardous work’ includes, among other things:• any occupation connected with mines (underground and underwater) and collieries;• gem cutting and polishing; and• any processing that involves toxic metals and substances such as lead, mercury, manganese, chromium, cadmium,benzene, pesticides and asbestos.
In 2016, another amendment was published to expand protections for children and adolescents, focusing on the
rehabilitation of children and adolescents who have already been employed in contravention to the age limits set
out in the bill.
Source:• India, The Child Labour (Prohibition and Regulation) Amendment Bill, 2016www.prsindia.org/uploads/media/Child%20Labour/Child%20labour%20as%20passed%20by%20RS.pdf

D Implementation guidance
COP 19.1 and 19.2: Minimum working age of 15 years and worst formsof child labour
19.1 Members shall not engage in or support child labour as defined in ILO Convention 138 and Recommendation 146,
which set the following minimum ages for work:a. A basic minimum working age of 15 years, to enable children to complete compulsory schooling.
b. Members operating in countries where compulsory schooling ends earlier than 15 years can start RJC membership whileallowing a minimum working age of 14 (subject to applicable law) but shall transition to a minimum working age of 15 by
the end of their first certification period.
19.2 Members shall not engage in or support the worst forms of child labour as defined in ILO Convention 182 andRecommendation 190, which includes:a. Hazardous child labour, which by its nature or circumstances is likely to jeopardise the health, safety or morals of persons
younger than 18 years. Where allowed by applicable law and supported by risk assessment and controls under COP
23 (Health and safety), a minimum age of 16 is allowed on condition that the health, safety and morals of the children
concerned are fully protected, and that the children have received adequate specific instruction or vocational training in
the relevant branch of activity.
b. All forms of child slavery and practices similar to slavery, including debt bondage, the trafficking of children, forced childlabour and the use of children in armed conflict.

Points to consider:• Make a senior management function, such as human resources, responsible for the child labour policy and procedures, andall remediation of potential and confirmed non-compliances.
• Establish a policy prohibiting the use of child labour and preventing young workers from doing hazardous work. Do this in astand-alone policy or incorporate it into an existing policy. Either way, make sure you communicate the child labour policy to
all managers and staff as well as any business partners that employ workers on your sites.
• You will need to do a risk assessment appropriate to your business circumstances to identify areas where there may be arisk of child labour in your operations or supply chain. Do this as part of your human rights due diligence (see COP 6 Humanrights and COP 7 Due diligence for responsible sourcing from conflict-affected and high-risk areas) and make sure you
include the following activities, as appropriate:•

Identify responsibilities related to hazardous work, and map current worker ages against these to confirm that no young
worker is involved.

•

Identify all indirectly employed workers on-site to confirm that they all meet the minimum working age requirements.

•

Assess any light work done by young workers to ensure that it complies with applicable law and the COP, and that it does
not interfere with schooling (note that you should support young workers participating in a structured formal education
programme in these cases).

162 RJC Code of Practices Guidance• Pay extra attention to artisanal mining sourcing relationships, which tend to carry a high risk of child labour (see COP 8
Sourcing directly from artisanal and small-scale mining).
• Develop procedures and management systems to help implement your child labour policy. In particular:•

Establish a process for verifying age as part of your hiring process, and keep copies of proof of age documents with
employment records. If using a recruitment or labour agency to hire workers, make sure they confirm proof of age before
employing workers on your site or assigning them hazardous work.

•

If an applicant doesn’t have official documents to prove their age, use several different verification approaches and‘triangulate’ them. For example, do a medical examination, get copies of other documents like school certificates orfamily testimonies and carry out interviews. In all cases, remain sensitive to gender and culture. Make sure that anyone
responsible for hiring and assigning tasks to workers are trained on how to avoid hiring underage workers or giving young
workers hazardous work.

•

Attach proof of age and a description of duties to the employment records of all workers under 18 years of age. This will
help you confirm your workers are not subjected to hazardous work or the worst forms of child labour.

•

Create and maintain a list of young workers and monitor their work schedules and duties to verify compliance with local
law and the COP with regards to working-hour limits, scheduling and school attendance. That includes ensuring thatschedules and work assignments comply with:- ILO Convention 33, which prohibits young workers from working night hours; and- ILO Convention 182 and Recommendation 190, which allows children that are 13 to 15 years of age to do light work,
as long as it does not threaten their health and safety or hinder their education or vocational orientation and training.
• Note that you must not dismiss child workers in advance of your RJC audit; you are expected to remedy non-compliances as
set out in COP 19.3.

Child-headed households
In some countries, children have no option but to work because, for example, they have been orphaned by conflict, diseaseor natural disasters; they can end up in ASM operations.
The decision to either refuse a subsistence opportunity or consciously accept child labour can pose a serious dilemma for
ASM communities—one that has been duly considered by the Alliance for Responsible Mining in developing the FairminedStandard (www.fairmined.org/the-fairmined-standard), which mirrors the COP’s approach.
In practice, this means:• If you find that children living in child-headed households or outside family or guardian care are in child labour in ASM
under your control, you must use the guiding principles of the UN Convention on the Rights of the Child to ensure thechildren’s well-being and safety.
• If you find young workers in the worst forms of child labour in ASM under your control, you must withdraw them
immediately and find safe alternative income-generation opportunities for them, including flexible schooling if they areyounger than minimum working age.
• If you find child labour in ASM that is not under your control but is in or near your concessions, you should engage inbroader programmes aimed at withdrawing child labour from mining and providing remedy.

COP 19.3: Where child labour is found at a facility
Notwithstanding COP 19.1, where child labour is found at a facility, members shall develop documented child labour
remediation processes that include steps for the child’s continued welfare and consider the financial situation of thechild’s family. Remediation shall include:
a. Immediately withdrawing any children engaged in child labour.
b. For a child still subject to compulsory education laws or attending school, offering adequate support to enable the child toattend and remain in school until she/he completes compulsory education.
c. For a child not still subject to compulsory education laws or attending school, finding alternative income generation and/or
vocational training opportunities. This can include decent and permissible employment.
d. A systemic review of the member’s approach to avoiding child labour, to identify root causes of non-conformances andimplement controls to avoid any recurrence.

RJC Code of Practices Guidance 163

Points to consider:• Instances of child labour require considered responses that take account of local circumstances and applicable law. All formsof remedy and corresponding stakeholder communication should align with COP 6 Human rights and COP 7 Due diligencefor responsible sourcing from conflict-affected and high-risk areas.
• Develop appropriate remediation strategies to deal with instances of non-conformance with the ILO conventions andapplicable law (see Table 19.1).
Table 19.1. Remediation strategies for non-conformances with ILO conventions and applicable law
Where children or young
workers are foundRemediation strategies

In child labour

Remove children under the minimum working age from employment and give themappropriate remedy, including access to good quality education with real prospects ofmeaningful employment when they leave school. This is especially important where there
is a risk that simply withdrawing children from employment will result in their working forother organisations with uncontrolled working conditions.

In worst forms of child labour,
doing hazardous work

Remove children or young workers from the situation immediately, report it to relevant
authorities and deploy a remediation strategy as above, seeking alternative light work foryoung workers.

• If children not engaged in worst forms of child labour continue to work during the remediation process, you must ensure thatthey:•

do not work during school hours;•

do not spend more than 10 hours a day in work and school combined (including time spent travelling to and from work andschool);•can have at least 12 hours night-time rest;•

have a minimum of customary weekly rest days;•

are given fair payment for their work; and•are not allowed to work any overtime.

• Achieving this in practice is not easy. Under the RJC system, if you have identified an instance of child labour, are in
remediation and are adhering to all these points, you will not be in a situation of critical breach. You must, however,immediately develop procedures to prevent any more children from being employed.
• When designing and implementing any remediation strategy, consider working with local non-government organisations
to ensure your approach is informed by local cultural and geographical priorities and perspectives. This will help guard yourstrategies against unintentionally causing further harm to the child or community.
• Consider supporting community development initiatives to eradicate the root causes of child labour. These can usually only
be implemented in co-operation with other agencies such as national or local government, international organisations, tradeunions, non-government organisations and community groups. They include local programmes and projects specifically
aimed at improving access to education, or at withdrawing children from child labour and enrolling them in school or
vocational training.

Check:■■Is a senior management function, such as human resources, responsible for child labour policies and procedures?
■■Do you have a written policy against child labour?
■■Do you have written procedures for verifying workers’ age during recruitment?
■■Do you keep proof of age within employee files?
■■Have you done a risk assessment to identify areas of hazardous labour and checked to make sure no workers under 18
years of age are involved?

■■If any children are found in employment, do you have a remediation process in place? And is it in accordance with
provision 19.3?

164 RJC Code of Practices Guidance

E Further information
Websites:Children’s Rights and Business Principles
http://childrenandbusiness.org/
Ethical Trade Initiative (ETI), Child Labour
www.ethicaltrade.org/issues/child-labour
Global Child Forumwww.globalchildforum.org
Human Rights Watch, Child Labour
www.hrw.org/topic/childrens-rights/child-labor
ILO, What Is Child Labour
www.ilo.org/ipec/facts/lang--en/index.htm
UN Global Compact, Principle Five: Labour
www.unglobalcompact.org/what-is-gc/mission/principles/principle-5
US Department of Labor, List of Goods Produced by Child Labor or Forced Labor
www.dol.gov/agencies/ilab/reports/child-labor/list-of-goods

Publications:Child Labour Platform, Report 2010-2011: Business Practices and Lessons Learned on Addressing Child Labour (2011)www.aidenvironment.org/media/uploads/documents/Child_Labour_Platform_Report_2010-11.pdf
ILO, Age Verification: Protection for Unregistered Children from Child Labour (2016)www.ilo.org/ipec/Informationresources/WCMS_IPEC_PUB_29095/lang--en/index.htm
ILO, C138—Minimum Age Convention (1973)
www.ilo.org/dyn/normlex/en/f?p=NORMLEXPUB:12100:0::NO::P12100_ILO_CODE:C138
ILO, C182—Worst Forms of Child Labour Convention (1999)
www.ilo.org/dyn/normlex/en/f?p=NORMLEXPUB:12100:0::NO::P12100_ILO_CODE:C182
ILO, Global Estimates of Child Labour: Results and Trends, 2012-2016 (2017)www.ilo.org/global/publications/books/WCMS_575499/lang--en/index.htm
ILO, R146—Minimum Age Recommendation (1973)
www.ilo.org/dyn/normlex/en/f?p=NORMLEXPUB:12100:0::NO:12100:P12100_ILO_CODE:R146
ILO, R190—Worst Forms of Child Labour Recommendation (1999)
www.ilo.org/dyn/normlex/en/f?p=NORMLEXPUB:12100:0::NO:12100:P12100_ILO_CODE:R190
ILO, Towards the Urgent Elimination of Hazardous Child Labour (2018)www.ilo.org/ipec/Informationresources/WCMS_IPEC_PUB_30315/lang--en/index.htm
SAI, Social Accountability SA8000® International Standard (2014)
http://sa-intl.org/_data/n_0001/resources/live/SA8000%20Standard%202014.pdf
Terre des Hommes, Child Labour Report 2017: The Neglected Link (2017)https://reliefweb.int/sites/reliefweb.int/files/resources/CL-Report-2017-engl_0.pdf
UN Global Compact, UNICEF and Save the Children, Children’s Rights and Business Principles (2012)www.unglobalcompact.org/docs/issues_doc/human_rights/CRBP/Childrens_Rights_and_Business_Principles.pdf

RJC Code of Practices Guidance 165

(COP 20) Forced labour
A Definitions and applicability
This provision applies to all RJC members.
Employees include both directly employed workers that have contracts with the RJC member and indirectly employed workers
that regularly work at members’ sites and that have employment contracts with a third party, such as a labour agent, labour
provider or contractor/subcontractor.
Forced labour includes any work or service that is exacted from someone under the menace of a penalty, and which the person
has not voluntarily agreed to do. There are four key types of forced labour:• Bonded labour, also known as debt bondage, happens when a worker pledges their labour (or that of their family members)
as security to repay a loan or wage advance from an employer or labour recruiter, where the terms of repayment are notclear and the loan provider does not intend to ever declare the loan repaid. Bonded labour can trap workers in debt to aparticular employer for years, sometimes even passing from generation to generation.
• Indentured labour happens when a third party, often a parent or guardian, offers a worker in exchange for money.
Indentured labourers are forced to work for either a fixed time, or until the proprietors decide they have received fair value.
• Human trafficking involves recruiting, harbouring or transporting people into a situation of exploitation through the use ofviolence, coercion or deception and forced to work against their will. People can be trafficked for many reasons, including
forced labour.
• Prison labour is involuntary work done by prisoners who have not been convicted in a court of law and whose work is notsupervised by a public authority. It also includes involuntary work done by a prisoner for the benefit of a private undertaking.
Vulnerable workers are specific groups of people, such as women, migrants (see box ‘Vulnerable migrant workers’), people
with disabilities, ethnic or religious groups, that exist within a larger population and that are at higher risk of being harassed,
exploited or in any other way discriminated against.
Sources:• International Labour Organization (ILO), C029—Forced Labour Convention (1930)
www.ilo.org/dyn/normlex/en/f?p=NORMLEXPUB:12100:0::NO:12100:P12100_ILO_CODE:C029• ILO, Combating Forced Labour: A Handbook for Employers and Business (2015)
www.ilo.org/wcmsp5/groups/public/---ed_norm/---declaration/documents/publication/wcms_101171.pdf• Social Accountability International (SAI), Social Accountability SA8000® (2008)www.sa-intl.org/_data/n_0001/resources/live/2008StdEnglishFinal.pdf• UN Human Rights, Protocol to Prevent, Suppress and Punish the Trafficking in Persons Especially Women and Children (2000)
www.ohchr.org/en/professionalinterest/pages/protocoltraffickinginpersons.aspx

B Issue background
Forced labour can be found in high- and low-income countries alike. It exists in formal and informal economies, and it can befound in the supply chains of multinational companies as well as those of small and medium-sized enterprises (SMEs). The 2017
Global Estimates of Modern Slavery1 suggests that there are around 24.9 million men, women and children in forced labouraround the world today. Among them, 16 million are exploited in the private economy, with women and girls disproportionately
affected.
Forced labour does not necessarily involve physical violence or sexual abuse. Debt bondage affects half of all victims of forced
labour imposed by private actors—giving a worker wages or other form of compensation does not necessarily mean thatthe labour is not forced or compulsory. Most victims of forced labour suffer multiple forms of coercion from employers or
recruiters, ending up in situations where they cannot leave their job without being penalised (or threatened with penalty).
Such penalty or threat might be physical constraint or punishment, but it could also be other forms of abuse, such as threat ofdeportation, restricted movement, confiscation of passports, deceptive recruitment or debt bondage (see COP 20.1).

1

ILO, Walk Free Foundation andInternational Organization for Migration, Global Estimates of Modern Slavery: Forced Labour and Forced Marriage (2017)www.ilo.org/global/publications/books/WCMS_575479/lang--en/index.htm

166 RJC Code of Practices GuidanceTrafficking involves the movement of a person, sometimes across international borders but more commonly within a country,
for the purpose of exploitation. Human trafficking is broader than forced labour as it also includes trafficking people for forced
marriage, organ removal or adoption.
Companies can be affected by human trafficking in several ways. They can be directly linked to it, for example by recruiting
trafficking victims as workers or by using company vehicles or premises to transport or harbour trafficking victims. They canalso be indirectly linked to trafficking through the actions of their suppliers or business partners, including subcontractors,
labour brokers or private employment agencies. This means that companies can be implicated in trafficking if they source
goods or use services that are produced or provided by trafficking victims.

Vulnerable migrant workers
Migrant workers are particularly vulnerable to forced labour, especially if they have illegal or restricted employment
status, are economically vulnerable or belong to an ethnic group subject to discrimination. Unscrupulous recruiters orlabour intermediaries can exploit these vulnerabilities by using deceptive recruiting tactics, charging recruitment fees, orwithholding identity documents and threatening denunciation to authorities and deportation. Under these conditions,migrant workers may accept to pay large fees to secure their job and work in substandard conditions and end up in forced
and bonded labour.
If you have migrants in your workforce, particularly if you use a third party to recruit them, you should:• know who these workers are and where they come from;• ensure that their recruitment was completely legitimate, done without deception, coercion or recruitment fees;• develop a company policy on recruiting migrant workers; and• only engage reputable recruitment and employment agencies.

Responsible recruitment
One of the major causes of forced labour in today’s global supply chains involves deceptive recruitment practices and the charging
of recruitment fees. These practices disproportionately affect vulnerable workers and leaves them open to exploitation andbonded labour. Responsible recruitment is an effort to break the cycle of exploitation and recruitment-related debt.
With a focus on migrant workers, and rooted in the Dhaka Principles for Migration with Dignity (see box ‘Dhaka Principles’),2
responsible recruitment starts with the principle that ‘no fees are charged to migrant workers’ and that employers should meet
all the costs associated with recruiting migrant workers. This ‘employer pays’ model of recruitment (www.employerpays.org)
is supported and implemented by a group of leading companies known as the Leadership Group for Responsible Recruitment.
It has been adopted by many business-led organisations including the Responsible Business Alliance and Building Responsibly.
And this model, which is seen as the first step to eliminating workers’ debt burden and preventing forced labour, is also
increasingly being used by companies across a range of sectors and countries.

2

Institute for Human Rights and Business, The Dhaka Principles for Migration with Dignity (2012) www.ihrb.org/dhaka-principles

RJC Code of Practices Guidance 167

Dhaka Principles
The Dhaka Principles for Migration with Dignity (the ‘Dhaka Principles’) aim to enhance respect for the rights of migrant
workers from the moment they are recruited, through their employment overseas, to the moment they move on to further
employment or return safely to their home countries.
Based on the UN Guiding Principles on Business and Human Rights and international human rights and labour standards,
the Dhaka Principles are intended for use by all industry sectors and in any country where workers migrate, in or out. The
12 Dhaka Principles are:1.

All workers are treated equally and without discrimination.

2.

All workers enjoy the protection of employment law.

3.

No fees are charged to migrant workers.

4.

All migrant worker contracts are clear and transparent.

5.

Policies and procedures are inclusive.

6.

No migrant workers’ passports or identity documents are retained.

7.

Wages are paid regularly, directly and on time.

8.

The right to worker representation is respected.

9.

Working conditions are safe and decent.

10. Living conditions are safe and decent.
11. Access to remedy is provided.
12. Freedom to change employment is respected, and safe, timely return is guaranteed.
Source:• Institute for Human Rights and Business, The Dhaka Principles for Migration with Dignity (2012)www.ihrb.org/dhaka-principles

C Key regulations, standards and initiatives
International standards
The freedom from forced and compulsory labour is enshrined in Article 4 of the Universal Declaration of Human Rights,3which states that ‘no one shall be held in slavery or servitude’.
The ILO leads the world’s efforts and has set standards to prevent forced labour through two major international conventions:• Forced Labour Convention, 1930 (ILO C029):4 this was the first convention demanding ILO member states to take action
against forced labour. It sets the most comprehensive and authoritative definition of forced labour (see Section A), and lists
five exceptions: compulsory military service, normal civic obligations, minor communal services, legitimate prison labour andwork exacted in emergencies.
• Abolition of Forced Labour Convention, 1957 (ILO C105):5 this complements ILO C029, with a focus on five types of stateimposed forced labour that emerged after the Second World War. These include forced labour as punishment for expressing
political views or taking part in strikes, as a means of discrimination or labour discipline, or for purposes of economic
development.
Even if ILO member states have not ratified either of these two ‘core’ conventions, they are still bound to eliminate all forms offorced and compulsory labour as these conventions are mentioned in the 1998 ILO Declaration on Fundamental Principles andRights at Work (www.ilo.org/declaration) that applies to all member states to the ILO.
In 2014, the ILO adopted another two instruments against forced labour:• Protocol of 2014 to the Forced Labour Convention, 1930 (ILO P029):6 this is a legally binding instrument that establishes
ILO member states’ obligations to prevent forced labour, protect victims and provide them with access to remedies.
Emphasising the link between forced labour and human trafficking, the protocol also reaffirms the importance of prosecuting
all perpetrators of forced labour.

3

UN, Universal Declaration of Human Rights (1948) www.un.org/en/universal-declaration-human-rights

4

ILO, C029—Forced Labour Convention (1930) www.ilo.org/dyn/normlex/en/f?p=NORMLEXPUB:12100:0::NO:12100:P12100_ILO_CODE:C029

5

ILO, C105—Abolition of Forced Labour Convention (1957) www.ilo.org/dyn/normlex/en/f?p=1000:12100:0::NO::P12100_ILO_CODE:C105

6

ILO, P029—Protocol of 2014 to the Forced Labour Convention, 1930 (2014)www.ilo.org/dyn/normlex/en/f?p=NORMLEXPUB:12100:0::NO::P12100_ILO_CODE:P029

168 RJC Code of Practices Guidance• Forced Labour (Supplementary Measures) Recommendation, 2014 (ILO R203):7 this provides non-binding practical advice
on how to strengthen national law and policy on forced labour to meet the obligations set out in the new protocol.
The increasing awareness of human trafficking over the past 20 years has led to new international and regional anti-trafficking
instruments emerging beyond the ILO, including the UN Protocol to Prevent, Suppress and Punish Trafficking in Persons
Especially Women and Children, or the ‘Palermo Protocol’,8 and the Council of Europe Convention on Action against Trafficking
in Human Beings. These instruments convey a growing consensus that trafficking in persons can include, result in or beundertaken for the purpose of forced labour, slavery and servitude. The adoption and ratification of these instruments has
contributed to rapid changes in legislation and practice in many countries and the adoption of new policies in this field.

National law
Applicable national and local laws in most countries (and regulations generally) are quite clear in addressing trafficking,involuntary servitude, prison labour and bonded labour. It is essential to be aware of all relevant legislation and regulation in all
jurisdictions of operations, especially those extraterritorial laws that impose specific requirements on companies to conduct
due diligence or report on steps they have taken to prevent forced labour in their operations and supply chain. Such laws are
rapidly expanding.
For more information on some of the most recent legislation in 2018—including the UK and Australian Modern Slavery Acts,
the French Duty of Vigilance Law and the California Transparency in Supply Chains Act—see the box‘ Recent regulations’ in
COP 6 Human rights.

D Implementation guidance
COP 20.1: No forced labour
Members shall not engage in or support the use of forced labour, including bonded, indentured or involuntary prison
labour as defined in ILO Convention 29.

Points to consider:• Clearly state your position against forced labour, either in a stand-alone policy or as part of a broader human rights policy,
and communicate this expectation to all business partners in your supply chain. In cascading your expectation within
the supply chain, you should reinforce an understanding that your company will potentially terminate business with any
suppliers that use forced labour.
•

Note that clearly communicating your position against forced labour to business partners is also important to implement
your human rights policy as required in COP 6.1a Human rights.

• Make a senior management function, such as human resources, responsible for forced labour issues.
• To help prevent use of forced labour in your business:•

Use standard employment contracts, including statutory and collectively agreed terms, working hours and wages. This
includes ensuring workers understand the terms of employment and are given a copy of the final employment contract,
and that standard regular wage payments are made directly to the worker and are not replaced by in-kind remuneration(see COP 15 General employment terms).

•

Formally prohibit any employee or contractor from using (or threatening to use) violence or penalties, or from using
intimidating practices, such as bullying. This includes ensuring that all workers and contractors know how to use
your grievance mechanism to anonymously report any infringements (see COP 18 Harassment, discipline, grievanceprocedures and non-retaliation).

• If you use contractors, suppliers, agencies or labour providers, make sure your human rights due diligence includes assessingthese business partners for potential instances of forced labour.
• The ILO defines 11 indicators of forced labour that you can use to help you identify instances in your supply chain. If you
find evidence of one indicator, there may be unfair labour practices present; evidence of two or more indicators suggests aheightened risk of forced labour. The 11 indicators are:

7

ILO, R203—Forced Labour (Supplementary Measures) Recommendation (2014)www.ilo.org/dyn/normlex/en/f?p=NORMLEXPUB:12100:0::NO:12100:P12100_ILO_CODE:R203:NO

8

UN, Protocol to Prevent, Suppress and Punish Trafficking in Persons Especially Women and Children (2000)
www.ohchr.org/en/professionalinterest/pages/protocoltraffickinginpersons.aspx

RJC Code of Practices Guidance 169

•

Abuse of vulnerability.

•

Deception.

•

Restriction of movement.

•

Isolation.

•

Physical and sexual violence.

•

Intimidation and threats.

•

Retention of identity documents.

•

Withholding of wages.

•

Debt bondage.

•

Abusive working conditions.

•

Excessive overtime.

COP 20.2: Voluntary work
Members shall ensure that all employees are working in voluntary situations. Members shall not:a. Unduly restrict the freedom of movement of employees in the workplace or in on-site housing.
b. Retain original copies of an employee’s personal documentation, such as identity papers.
c. Use deceptive recruitment practices and/or require employees to pay any deposits, equipment advances or recruitment
fees (either wholly or partially) as part of the recruitment process. If any such fees are found to have been paid byemployees, they shall be reimbursed.
d. Withhold any part of an employee’s salary, benefits or property to force an employee to continue working.
e. Prevent employees from terminating their employment after reasonable notice or as established by applicable law.

Points to consider:• If you use security measures (such as locked doors and security guards at exits) to protect workers and property on yoursites, make sure workers can still leave with no, or only limited and duly justified, restrictions at the end of their shift and inany case of danger or threat to their person.
•

Note that as long as you can prove that workers can leave without threat or penalty, and that all work is voluntarily done,taking security precautions at exits is not considered forced labour.

• Giving workers freedom of movement also includes making sure:•workers can leave their workstation for specific purposes, such as going to the bathroom, having a hydration break or
seeking medical attention (under no circumstance must you restrict access to food, water, toilets or medical care in theworkplace as a way of disciplining workers); and•workers have no unreasonable restrictions on moving around in any employer-provided housing, including both employeroperated and third party-contracted residences.

• Do not keep workers’ original identity documents, such as their passport, under any circumstances other than to respond to
local work-related administrative processes (such as obtaining a work visa, local ID, etc.).
• It is considered best practice to give workers free access to a secure place where they can keep their valuables and personal
documents while at work. This can include safety deposit boxes if your employees need to have their passports stored securely.
• Do not charge workers, either directly or indirectly, any fees or deposits for recruitment. If you find that a worker has paid
recruitment fees, you must set up a system that will compensate workers for the full amount they paid.
• Be proactive in ensuring that neither you nor your business partners defer or withhold any part of a worker’s wage payments
to make them work for longer; and follow guidance for COP 17 Remuneration to make sure workers are paid appropriately.
• In the absence of contractual notice period, if a worker resigns, you can ask them to keep working for a fixed period of time
until you can find a replacement. But make sure the worker is free to decline your request without being threatened or
having their remaining wages withheld.

COP 20.3: Human trafficking
Members shall not engage in or support human trafficking or any other type of deceptive recruitment and/or bonded
labour practices. Members shall clearly communicate this requirement to labour recruiters, agencies and providers
with whom they work, and shall monitor their relationships and remedy negative human rights impacts as they may
occur, as defined in COP 6.1 (Human rights).

170 RJC Code of Practices GuidancePoints to consider:• Clearly state your position against human trafficking, deceptive recruitment and bonded labour (either in a stand-alone
policy or as part of a broader human rights policy) and communicate this to any labour recruiters, agencies or providers thatyou work with.
• Use due diligence to identify any risk of human trafficking or deceptive recruitment or bonded labour in your own operations
and those of your supply chain (see COP 6 Human rights and COP 7 Due diligence for responsible sourcing from conflictaffected and high-risk areas).
• If you use labour recruiters, agencies and providers:•

Only use those whose business is formally licensed or certified by the competent authority.

•

Carry out due diligence to check for any instances of human trafficking or deceptive recruitment or bonded labour,
especially if migrant workers are involved (see Figure 20.1).

•

Make sure they do not engage in any practice that puts workers at risk of human trafficking or deceptive recruitment orbonded labour (including recruitment fees, debt bondage or intimidation).

• Continue to monitor your own operations and those of any labour recruiters, agencies and providers that you use to ensureongoing compliance with COP 20.3. For example, by:•holding regular worker interviews or surveys;•

doing desktop reviews of policies and procedures to confirm they have the right controls in place (this could include
reviewing employee contracts); and•requiring formal audits.

Use of deception, false promises.

Recruitment
Initial andsubsequent
recruitment(including travel)

Payments to intermediaries to get jobs, identity papers, travel documents, etc.
Job imposed as a condition of other beneﬁts.
Forced recruitment, kidnapping.
Kind of travel arrangements (if relevant).
Change of job without possibility of refusal.
Violence or threats of violence in case of refusal to change job.

Indicatorsof forced
labourFreedom to choose living quarters.

Livingconditions
during employment

Wage deductions for lodging or work tools.
Freedom to leave the premises, contact family, talk with people outside.
Surveillance of living quarters.
Quality, quantity and price of employer-provided food.
Freedom to buy food outside the workplace.

Workercoercion
to make the employee
work or to stop themfrom leaving

Withholding of salary.
Debt manipulation.
Abuse of worker’s vulnerability resulting from irregular migration status.
Retention of identity papers or travel documents.
Close surveillance of worker’s movements.
Impossibility of leaving the work premises.
Violence or threat of violence.
Threats against worker or family members if worker leaves.
Threats of denunciation or deportation.

Figure 20.1. Key indicators of forced labour that can be used to support due diligence processes for selecting and monitoringlabour recruiters, agencies and providers
Source: ILO, Hard to See, Harder to Count: Survey Guidelines to Estimate Forced Labour of Adults and Children (2012)http://ilo.org/wcmsp5/
groups/public/---ed_norm/---declaration/documents/publication/wcms_182096.pdf

RJC Code of Practices Guidance 171

Q&A: Forced labour
1. If an employee has verbally or in writing given his or her consent to work, how can there be a question of forced labour?
The formal consent of an employee does not always guarantee that the employee works voluntarily. For example, whereconsent to work has been given under the threat of violence, there can be no voluntary offer to work. Similarly, if a worker
is induced by deceit, false promises or the confiscation of identity documents, they cannot be said to offer their work
voluntarily and so are in forced labour.
2. Does keeping personal documents during the term of employment count as forced labour?
Only if workers cannot access these documents when they want to, or if they feel they cannot leave employment without
risking the loss of these documents.
3. Is compulsory overtime to meet production deadlines considered forced labour?
Not if it stays within the limits set out by national legislation or collective agreements. Forced labour occurs if overtime
exceeds the weekly or monthly limits allowed by law and is made compulsory (irrespective of the reason why). Overtimeis also considered forced labour if workers are penalised, fined or threatened for refusing to do it (see COP 16 Working
hours).
4. If I am giving my workers full wages and benefits, can a forced labour problem ever arise?
If a person is not free to leave his or her employment without threat or penalty, they are in forced labour regardless ofwhether or not you give them full wages or other forms of compensation.
5. I hire security personnel and lock the doors of my workplace to prevent theft and protect the security of myemployees and property. Is this considered forced labour?
Not if workers can leave without threat or penalty and all work is performed voluntarily. The unreasonable restrictionof movement by security personnel can indicate forced labour and so should be treated with caution. Make sure yoursecurity arrangements also comply with COP 13 Security.
Source:• ILO, Q&As on Business and Forced Labour
www.ilo.org/empent/areas/business-helpdesk/faqs/WCMS_DOC_ENT_HLP_FL_FAQ_EN/lang--en/index.htm

Check:■■Have you assessed the risks of forced labour and human trafficking in your company, within your supply chain and inany recruitment agencies?

■■Do your security arrangements unreasonably restrict movement via penalty or threat of penalty to workers?
■■Can workers access their identity documents and passports when they need to?
■■Can you show that workers are not forced to perform compulsory overtime?
■■Can you show that workers were informed of employment terms and given an accurate contract in a language they
understand before beginning work?

■■Have you confirmed workers were not charged recruitment fees as part of their hiring process? If a worker was charged
recruitment fees, can you show these were fully reimbursed?

■■Can you show that workers are free to leave employment after reasonable notice without penalty or deliberateretention of wages?

■■Can you show that you are assessing and monitoring facility labour recruiters, agencies and providers?

172 RJC Code of Practices Guidance

E Further information
Websites:
ILO, Special Action Programme to Combat Forced Labour
www.ilo.org/global/topics/forced-labour/WCMS_210827/lang--en/index.htm
SAI, Social Accountability SA 8000® International Standard
http://www.sa-intl.org/index.cfm?fuseaction=Page.ViewPage&pageId=1689
UN Global Compact, Principle Four: Labour
www.unglobalcompact.org/AboutTheGC/TheTenPrinciples/Principle4.html
UN Global Initiative to Fight Human Trafficking (UNGIFT)
www.ungift.org
Verité, Fair Hiring Toolkit
http://helpwanted.verite.org/helpwanted/toolkit

Publications:
The Danish National Board of Social Services, Managing the Risk of Hidden Forced Labour: A Guide for Companies andEmployers (2014)www.gla.gov.uk/media/1578/guidelines-riskmanagement-eng-version-1-0.pdf
Institute for Human Rights and Business, Migration with Dignity: A Guide to Implementing the Dhaka Principles (2017)www.ihrb.org/uploads/member-uploads/IHRB%2C_Migration_with_Dignity_-_Implementing_the_Dhaka_Principles.pdf
ILO, C029—Forced Labour Convention (1930)
www.ilo.org/dyn/normlex/en/f?p=NORMLEXPUB:12100:0::NO:12100:P12100_ILO_CODE:C029
ILO, C105—Abolition of Forced Labour Convention (1957)
www.ilo.org/dyn/normlex/en/f?p=NORMLEXPUB:12100:0::NO:12100:P12100_INSTRUMENT_ID:312250:NO
ILO, Combating Forced Labour: A Handbook for Employers and Business (2015)
www.ilo.org/global/topics/forced-labour/publications/WCMS_101171/lang--en/index.htm
ILO, Forced Labour and Human Trafficking: Handbook for Labour Inspectors (2008)
www.ilo.org/wcmsp5/groups/public/---ed_norm/---declaration/documents/publication/wcms_097835.pdf
ILO, General Principles and Operation Guidelines for Fair Recruitment (2016)www.ilo.org/global/topics/fair-recruitment/WCMS_536755/lang--en/index.htm
ILO, Hard to See, Harder to Count: Survey Guidelines to Estimate Forced Labour of Adults and Children (2012)
http://ilo.org/wcmsp5/groups/public/---ed_norm/---declaration/documents/publication/wcms_182096.pdf
ILO, ILO Indicators of Forced Labour (2012)www.ilo.org/wcmsp5/groups/public/---ed_norm/---declaration/documents/publication/wcms_203832.pdf
Responsible Recruitment Toolkit, Eliminating Recruitment and Employment Fees Charged to Workers in Supply Chains (2017)https://responsiblerecruitmenttoolkit.org/wp-content/uploads/Eliminating-Recruitment-and-Employment-Fees-Charged-toWorkers-in-Supply-Chains.pdf
Stronger Together, Tackling Modern Slavery in Global Supply Chains Toolkit (2017)www.stronger2gether.org/product/toolkit-for-global-supply-chains/
UN, Protocol to Prevent, Suppress and Punish the Trafficking in Persons, Especially Women and Children (2000)
www.ohchr.org/en/professionalinterest/pages/protocoltraffickinginpersons.aspx
UNGIFT, Human Trafficking and Business: Good Practices to Prevent and Combat Human Trafficking (2012)www.ilo.org/wcmsp5/groups/public/---ed_norm/---declaration/documents/publication/wcms_142722.pdf
Verité, Help Wanted: The Verité Toolkit for Fair Hiring Worldwide (2011)www.verite.org/sites/default/files/images/Verite-Help-Wanted-A_Fair_Hiring_Framework_for_Responsible_Business.pdf

RJC Code of Practices Guidance 173

(COP 21) Freedom of associationand collective bargaining
A Definitions and applicability
This provision applies to all RJC members.
Collective bargaining is the process of negotiation between organisations of workers and their employers (or a single
employer). It involves joint decision-making and so is distinct from other forms of governance such as government regulation,individual contracts or the unilateral decisions of employers.
A collective bargaining agreement is a legally enforceable written contract that sets out terms and conditions at work, basedon negotiations between an employer and a workers’ organisation. Collective bargaining agreements usually state the rights
and responsibilities of both employers and workers; in all cases they must comply with applicable law.
Employees include both directly employed workers that have contracts with the RJC member and indirectly employed workers
that regularly work at members’ sites and that have employment contracts with a third party, such as a labour agent, labour
provider or contractor/subcontractor.
Freedom of association is the right of all workers and employers without exception to establish and join organisations of theirown choosing without prior authorisation and without interference from government or from one another.
A workers’ organisation is a voluntary association of workers organised for occupational purposes with the aim of furtheringand defending the interests of workers.
Sources:• Ethical Trading Initiative (ETI), Freedom of Association in Company Supply Chains: A Practical Guide (2013)www.ethicaltrade.org/sites/default/files/shared_resources/foa_in_company_supply_chains.pdf• International Labour Organization (ILO), ILO Declaration on Fundamental Principles and Rights at Work (1998)
www.ilo.org/declaration/lang--en/index.htm• Better Work, Guidance Sheet 4: Freedom of Association and Collective Bargaining (2009)http://betterwork.com/global/wp-content/uploads/4-Freedom-of-Association.pdf• Sedex and Verité, Sedex Supplier Workbook. Chapter 1.3: Freedom of Association and Collective Bargaining (2014)
https://cdn.sedexglobal.com/wp-content/uploads/2016/09/Part-1-Labour-Standards_Sedex-Supplier-Workbook-2014.pdf

B Issue background
The right to freedom of association is proclaimed in the Universal Declaration of Human Rights.1 At work, this means the rightto freely form workers’ organisations. Workers who do not wish to join such organisations also have their rights protected andcannot be coerced into joining against their will.
Freedom of association does not mean that companies should organise workforces or invite unions into the workplace. It
simply means that employers must not interfere in an employee’s decision to join an association or discriminate against theemployee for their choice. This includes indirect undermining of freedom of association, for example by preventing unions fromaccessing workers or by interfering or influencing the election outcomes of workers’ organisations.
Collective bargaining is a voluntary process that takes place between workers’ representatives and employers’
representatives. It usually focuses on negotiating the terms and conditions of employment, such as wages, working hours,
working conditions, grievance procedures and the rights and responsibilities of both workers and employers. The mainprinciple for the negotiation is that it should be carried out in good faith, with genuine effort to reach agreement in reasonable
time. The mutually acceptable result of collective bargaining is called a ‘collective bargaining agreement’. If the parties cannot
reach agreement, they enter dispute settlement procedures, which range from conciliation to mediation to arbitration.
Freedom of association has not yet received the same level of attention from companies as health and safety or abolition ofchild labour. But increasing globalisation, privatisation and legal action against companies is bringing freedom of association
into greater focus. As part of the framework of basic human rights, it should be high on the agenda of all companies.

1

UN, Universal Declaration of Human Rights (1948) www.un.org/en/universal-declaration-human-rights

174 RJC Code of Practices GuidanceCollective bargaining: good for businessAccording to the International Labour Organization (ILO), ‘far from dragging businesses down and reducing productivity,
there is considerable evidence that collective bargaining agreements actually reduce wage inequality and can contributeto productivity and competitiveness’.2
The collective voice of workers can be an important influence not only in stabilising labour relations but in improving
management performance. Research shows that a trade union presence in a company is associated with:• greater wage equality;• a higher share of income allocated to social benefits;• lower employee turnover, leading to lower recruitment and training costs;• skills retention and development;• smoother changes in workplace practices; and• increased productivity.
Source:• Ethical Trading Initiative, Freedom of Association in Company Supply Chains: A Practical Guide (2013)www.ethicaltrade.org/sites/default/files/shared_resources/foa_in_company_supply_chains.pdf
2

C Key regulations, standards and initiatives
International standards
Article 20 of the Universal Declaration of Human Rights3 states that ‘everyone has the right to freedom of peaceful assembly
and association’, and that ‘no one may be compelled to belong to an association’. Article 23.4 specifically provides for the rightto join a trade union.
The ILO leads global efforts to define and set standards for upholding these rights through two major conventions:• Freedom of Association and Protection of the Right to Organise Convention, 1948 (ILO C087);4 and• Right to Organise and Collective Bargaining Convention,1949 (ILO C098).5
Together, these conventions highlight six features of what it means to have freedom of association (see Figure 21.1).

2

ILO, Weakening Collective Bargaining Hurts Recovery (2012) www.ilo.org/global/about-the-ilo/newsroom/news/WCMS_189517

3

UN, Universal Declaration of Human Rights (1948) www.un.org/en/universal-declaration-human-rights

4

ILO, C087—Freedom of Association and Protection of the Right to Organise Convention (1948)
www.ilo.org/dyn/normlex/en/f?p=NORMLEXPUB:12100:0::NO::P12100_INSTRUMENT_ID:312232

5

ILO, C098—Right to Organise and Collective Bargaining Convention (1949) www.ilo.org/dyn/normlex/en/f?p=1000:12100:0::no::P12100_Ilo_Code:C098

RJC Code of Practices Guidance 175

right to form and
1 The
join organisations

Workers have the right toform or join any workplaceorganisation they choose,
without interference from
employers or the government.
free functioning
3 Theof trade unions

Neither management nor
government should meddle with
the internal affairs of a tradeunion. This includes giving funds,
but not providing facilities, suchas an ofﬁce or telephone.
Management cannot be present
during union meetings; nor canit demand to approve union
meeting minutes.

5

The union’s right to form or joinfederations and confederations

This freedom is particularly
important in jurisdictions where
unions only include employees
from a single factory.

Non-interference in election or
duties of union representatives

2

Union members must be free tochoose their representatives.
Elected ofﬁcers should be free tocarry out their duties without
interference, as long as they
comply with applicable law and anycollective bargaining agreement.
Non-interference by
non-union bodies

4

Legally-based non-union worker
organisations exist in somecountries; these must notundermine the position of tradeunions or their representatives.
The right to collective
bargaining

6

Workers have the right to form or
join any workplace organisation
they choose, without interference
from employers or the government.

Freedom of association
Figure 21.1. Six elements of freedom of association
Source: ETI, Freedom of Association in Company Supply Chains: A Practical Guide (2013)www.ethicaltrade.org/sites/default/files/shared_resources/foa_in_company_supply_chains.pdf

Even if ILO member states have not ratified either of the ‘core’ conventions, they are still bound to uphold freedom of
association and the right to collective bargaining through the 1998 ILO Declaration on Fundamental Principles and Rights at
Work (www.ilo.org/declaration).
Other ILO conventions further support freedom of association and the right to collective bargaining. For example, ILO
Convention 1356 deals with workers’ representatives and states that management should not try to place restrictions onwhom the union elects as its officers (for example, by stipulating that elected officers must have certain levels of educationor have served the company for certain lengths of time). Under Convention 135, union members must be free to choose
their representatives, who should then be free to carry out their duties without interference. This does not mean that
representatives can do whatever they want or give up working. They should function in accordance with national law and/or
under a collective agreement on such matters as the facilities they can use and the amount of time they can take off work forunion duties.

National law
Most national labour and employment laws have very specific provisions on freedom of association, collective bargaining andthe structures that support these. Some countries restrict freedom of association through trade unions at a country level,
within special economic zones or for certain categories of workers, such as migrant workers. In other countries where freedomof association is legal, there may still be restrictions on the full expression of freedom of association.
It is essential to be aware of all relevant legislation in the jurisdictions of operation.

6

ILO, C135—Workers’ Representatives Convention (1971) www.ilo.org/dyn/normlex/en/f?p=1000:12100:::NO:12100:P12100_INSTRUMENT_ID:312280

176 RJC Code of Practices GuidanceCountries where freedom of association is currently restricted by law• Most of the Gulf States (Bahrain, Oman, Qatar, Saudi Arabia, United Arab Emirates): trade unions are bannedcompletely.
• China and Vietnam: union is government controlled and not independent.
Source:• Sedex and Verité, Sedex Supplier Workbook. Chapter 1.3: Freedom of Association and Collective Bargaining (2014)
https://cdn.sedexglobal.com/wp-content/uploads/2016/09/Sedex-Supplier-Workbook-2014-version-Web.pdf

D Implementation guidance
COP 21.1: Respect employees’ right to associate freely
Members shall respect the right of employees to associate freely in workers’ organisations of their choice, without
interference or negative consequences. Members shall ensure that employees seeking to form or join an organisationof their own choosing are not subject to any form of harassment as outlined in COP 18.1 (Harassment, discipline,
grievance procedures and non-retaliation).

Points to consider:• Make a senior management function, such as human resources, responsible for being aware of, and complying with, thisprovision.
• Make sure that your procedures for hiring, terminating and reviewing the performance of employees do not discriminate
against union members, or those seeking to form a union in accordance with applicable law (see COP 22 Nondiscrimination). Establish grievance mechanisms that allow workers to raise any concerns (see COP 18 Harassment,
discipline, grievance procedures and non-retaliation).
• It is your responsibility to ensure your workers understand their right to organise, which they must be free to do without any
interference from you. Establish a formal process for communicating, in an unbiased way, with workers about their right tojoin or form trade unions.
• Be careful not to promote any particular union or workers’ association, and do not force your workers to join or leave one.
• Do not obstruct or intervene in any way the election of union representatives.
• Make sure unions and their representatives have the right to carry out their activities as described under applicable law.

COP 21.2: Respect the right of employees to collective bargaining
Members shall respect the right of employees to collective bargaining, and shall adhere to collective bargaining
agreements, where these exist. Members shall, subject to applicable law, participate in any collective bargaining
processes in good faith.

Points to consider:• Where a workers’ organisation exists, negotiate with it to reach a collective bargaining agreement.
• You are expected to negotiate and bargain in good faith and not to engage in undue litigation or other actions to slow, stop or
limit the bargaining process. This means that during negotiations, you should show a willingness to discuss, compromise andreach a mutually agreed solution.
• All collective bargaining agreements must comply with applicable law. As this can vary significantly across jurisdictions, it isimportant that you take time to identify and understand your legal obligations.
• Once a collective bargaining agreement is reached—at a company, sector or national level—make sure you fully implement it
within your business.
• Note that collective bargaining agreements may also be subject to other COP requirements, for example those in:•

COP 16 Working hours if they are used to set out workers’ collective agreement to working overtime in somecircumstances, working longer hours, or averaging rest days; and•

COP 17 Remuneration if they are used to define the agreed overtime wage rate or the circumstances under which wage
deductions can be made.
RJC Code of Practices Guidance 177

Conforming with COP 21 in India
In some businesses or jurisdictions, there may be forms of worker engagement or agreements that do not seem to satisfy
the requirements of COP 21.
For example, many companies in India do not have trade unions, so collective bargaining does not take place. Instead,‘works committees’ provide forums for raising and discussing issues between workers and management. The members ofthese committees are not officially elected; rather, they are usually nominated by general consensus among the workers.
Their discussions with management, along with any outcomes and agreements reached, are usually documented inmeeting minutes and are sometimes written up as a memorandum of understanding (MOU). These are not, however,considered equivalent to ‘collective bargaining agreements’ under Indian law, because the committee is not a freely
associating workers’ organisation or trade union.
Under Indian legislation (the Indian Industrial Disputes Act), works committees serve to secure and preserve good
relations between a company and its workers, comment upon common matters of interest or concern and try to settle any
material difference of opinion. In all cases, the RJC encourages the use of these committees, especially as a way of raisingawareness about the RJC COP.
Depending on the specific form of worker engagement or agreement in place, your business may or may not conform with
COP 21, as follows:• Conformance: Collective bargaining agreements comply with applicable law and govern relevant work terms or
conditions.
• Minor non-conformance: Some form of legally constituted worker engagement exists, and an agreed document (suchas an MOU or minutes of properly constituted meetings) governs relevant work terms or conditions. In this case, theagreed document is not considered a collective bargaining agreement under applicable law and corrective action isneeded to either turn it into a legally recognised collective bargaining agreement, or to ensure employment terms andconditions comply with applicable law.
• Major non-conformance: No form of legally constituted worker engagement governs the relevant work terms andconditions.

COP 21.3: Countries where rights are restricted
Where legislation restricts the right to freedom of association and collective bargaining, members shall not obstructalternative means that are allowed under applicable law.

Points to consider:• Respect legal alternative means for workers to associate.
• Do not pressure your workers to join a company-controlled organisation in place of an organisation created and controlled
by workers.

Check:■■Do you let your workers associate freely in the organisations or unions of their choice?
■■Do you have processes to communicate with workers in a non-biased way about their right to organise?
■■Do you participate in collective bargaining agreements in good faith and adhere to the agreed outcomes?
■■Do collective bargaining agreements comply with applicable law?
■■In countries where workers’ rights to associate are restricted, do you let your workers associate in state-controlled
unions or alternative legal means of association?

178 RJC Code of Practices Guidance

E Further information
Websites:
ETI, The ETI Base Codewww.ethicaltrade.org/resources/key-eti-resources/eti-base-code
ILO, ILO Declaration on Fundamental Principles and Rights at Work
www.ilo.org/declaration
UN Global Compact, Principle Three: Labour
www.unglobalcompact.org/what-is-gc/mission/principles/principle-3

Publications:
Better Work, Guidance Sheet 4: Freedom of Association and Collective Bargaining (2009)http://betterwork.com/global/wp-content/uploads/4-Freedom-of-Association.pdf
ETI, Freedom of Association in Company Supply Chains: A Practical Guide (2013)www.ethicaltrade.org/sites/default/files/shared_resources/foa_in_company_supply_chains.pdf
ILO, C087—Freedom of Association and the Right to Organise Convention (1948)
www.ilo.org/dyn/normlex/en/f?p=1000:12100:0::NO::P12100_ILO_CODE:C087
ILO, C098—Right to Organise and Collective Bargaining Convention (1949)
www.ilo.org/dyn/normlex/en/f?p=1000:12100:0::NO::P12100_ILO_CODE:C098
Sedex and Verité, Sedex Supplier Workbook. Chapter 1.3: Freedom of Association and Collective Bargaining (2014)
https://cdn.sedexglobal.com/wp-content/uploads/2016/09/Sedex-Supplier-Workbook-2014-version-Web.pdf
UN, Universal Declaration of Human Rights: Article 20 (1948)
www.un.org/en/universal-declaration-human-rights/index.html

RJC Code of Practices Guidance 179

(COP 22) Non-discrimination
A Definitions and applicability
This provision applies to all RJC members and to all directly employed workers and indirectly employed workers who
regularly work at members’ sites.
Discrimination is where people are treated differently, or given unequal opportunities, because of their race, ethnicity, caste,national origin, religion, disability, gender, sexual orientation, union membership, political affiliation, marital or pregnancy
status, physical appearance, HIV status, age or any other personal characteristic.
Discrimination can be direct or indirect, and it does not have to be intentional. Practices that appear neutral but result in
unequal treatment of people with certain characteristics are considered indirect discrimination. Harassment (behaviour thatcreates an intimidating, hostile or humiliating working environment) is also considered discrimination when it is based on
discriminatory grounds.
Non-discrimination means employees are judged on the basis of their ability to do a job, without exclusion or preference on
any other grounds. Distinctions based strictly on the inherent requirements of particular work are not discrimination.
Source:• International Labour Organization (ILO), Equality and Discriminationwww.ilo.org/global/topics/equality-and-discrimination/lang--en/index.htm• Better Work, Guidance Sheet 2: Discrimination (2009)http://betterwork.com/global/wp-content/uploads/2-Discrimination.pdf

B Issue background
Discrimination at work takes many forms and occurs in diverse sectors and occupational settings. It is found in high- andlow-income countries, in rural and city settings, and in low- and high-technology workplaces. It can affect how an employee isgiven responsibilities, training or promotion; how they are treated at work; or how secure their job is. It can even stop someone
getting a job in the first place. Ultimately, discrimination creates and reinforces inequalities and is a breach of human rights.
Globally, women suffer some of the most discrimination, in terms of the jobs available to them, their remuneration, benefits
and working conditions, and access to decision-making positions.1 Other groups routinely discriminated against include young
people and older people, migrant workers and refugees, ethnic minorities, people with disabilities and people with HIV/AIDS.
For employers, direct discriminatory practices arise when, for example, laws, rules or customs explicitly cite a reason suchas sex or race to deny equal opportunity. Indirect discrimination is much more common and much more difficult to identify
in practice. It happens when rules, practices or attitudes seem to be neutral but in fact lead to exclusions or preferential
treatment. Harassment is also considered discrimination when it is based on discriminatory grounds (see COP 18 Harassment,
discipline, grievance procedures and non-retaliation). Where discrimination is indirect or is culturally ingrained, it requires a
conscious effort from employers to identify and address in a purposeful way.
Freedom from discrimination is a fundamental human right. But bringing equality to the workplace has economic benefits, too.
Employers who eliminate discrimination can access a larger and more diverse workforce. Workers who enjoy equality havegreater access to training, often receive higher wages and improve the overall quality of the workforce.

1

ILO, Equality at Work: The Continuing Challenge (2011) www.ilo.org/wcmsp5/groups/public/---ed_norm/---relconf/documents/meetingdocument/wcms_154779.pdf

180 RJC Code of Practices GuidanceC Key regulations, standards and initiatives
International standards
Non-discrimination principles are enshrined in the Universal Declaration of Human Rights:2• Article 2 states that everyone is entitled to the rights and freedoms of the declaration, without distinction of any kind.
• Article 7 states that all are equal before the law and are entitled to equal protection against any discrimination in violation of
the declaration.
• Article 23 states that everyone has the right to equal pay for equal work.
These rights have also been defined in international labour law through two major conventions of the International Labour
Organization (ILO):• Discrimination (Employment and Occupation) Convention, 1958 (ILO C111):3 Under ILO C111, countries must develop andimplement a national policy to promote equal opportunity and treatment, with a view to eliminating discrimination in theworkplace. This includes eliminating discrimination in access to vocational training, employment, particular occupations, andterms and conditions of employment.
• Equal Remuneration Convention, 1951 (ILO C100):4 This requires countries to ensure men and women are given equal pay
for work of equal value.
Even if ILO member states have not ratified either of these ‘core’ conventions, they are still bound to eliminate discriminationin respect of employment and occupation through the 1998 ILO Declaration on Fundamental Principles and Rights at Work
(www.ilo.org/declaration).

National law
Most national labour and employment laws have provisions for non-discrimination. In some countries, however, there isprovision for ‘positive’ discrimination that seeks to redress historical inequalities such as gender or race.
It is essential to be aware of all relevant legislation in all jurisdictions of operation.

D Implementation guidance
COP 22.1: Not practice or condone any form of discrimination
Members shall not practise or condone any form of discrimination in the workplace in terms of hiring, continued
employment, remuneration, overtime, access to training, professional development, promotion, termination orretirement. This includes discrimination based on race, colour, ethnicity, caste, national origin, religion, disability or
genetic information, gender, sexual orientation, union membership, political affiliation, marital status, parental or
pregnancy status, physical appearance, HIV status, age or any other personal characteristic unrelated to the inherent
requirements of the work. Members shall ensure that all individuals who are ‘fit for work’ are given equal opportunities
and are not discriminated against on the basis of factors unrelated to their ability to perform their job.

Points to consider:• Make a senior management function, such as human resources, responsible for discrimination issues.
• Take action to reduce the risks of discrimination, remembering that these may be higher or more evident in certain countries,
industry sectors, particular occupations, or on issues such as union membership or pregnancy or maternity.
•

Review your operations and assess the risks of discrimination. The RJC hosts a risk assessment toolkit that includes a
general risk assessment template you might find useful, especially if you are a small business. Alternatively, use your own
tried and tested risk assessment process.

•

Where appropriate, develop hiring, termination, promotion and performance review policies and procedures to address
any potential or actual discrimination issues.

2

UN, Universal Declaration of Human Rights (1948) www.un.org/en/universal-declaration-human-rights

3

ILO, C111—Discrimination (Employment and Occupation) Convention (1958) www.ilo.org/dyn/normlex/en/f?p=NORMLEXPUB:12100:0::NO::P12100_ILO_CODE:C111

4

ILO, C100—Equal Remuneration Convention (1951) www.ilo.org/dyn/normlex/en/f?p=NORMLEXPUB:12100:0::NO::P12100_ILO_CODE:C100

RJC Code of Practices Guidance 181

•Train anyone involved in hiring, firing and managing employees in diversity and anti-discrimination to make sure they makedecisions based on a person’s qualifications, skill and experience.

•

Use anti-discrimination training to raise awareness of what direct and indirect discrimination looks like, and how
employees can report it confidentially without fear of retaliation (see COP 18.4 Harassment, discipline, grievanceprocedures and non-retaliation).

• Management should carefully review any reported or suspected cases of discrimination. Make sure that any response takes
local circumstances into account, while still aligning with the COP.

Check:■■Is a senior management function responsible for all discrimination issues?
■■Are there risks of discrimination in your company and are senior managers aware of these?
■■Where risks are identified, do you have policies and procedures to address them?
■■Have those employees responsible for recruitment, placement, training and advancement procedures been given
diversity and anti-discrimination training?

■■Have the rest of your employees received anti-discrimination training? And do they know how to report any potential
discrimination through your grievance mechanism?

E Further information
Websites:
ILO, Equality and Discriminationwww.ilo.org/global/topics/equality-and-discrimination/lang--en/index.htm
ILO, Working Conditions Laws Databasewww.ilo.org/dyn/travail/travmain.home
UN Global Compact, Principle 6: Labour
www.unglobalcompact.org/what-is-gc/mission/principles/principle-6

Publications:
Better Work, Guidance Sheet 2: Discrimination (2009)http://betterwork.com/global/wp-content/uploads/2-Discrimination.pdf
International Finance Corporation (IFC), Good Practice Note: Non-Discrimination and Equal Opportunity (2006)
www.ifc.org/wps/wcm/connect/topics_ext_content/ifc_external_corporate_site/sustainability-at-ifc/publications/publications_
gpn_nondiscrimination
UN, Universal Declaration of Human Rights [Articles 2, 7 and 23] (1948)
www.un.org/Overview/rights.html

182 RJC Code of Practices GuidanceHealth,safety andenvironment

(COP 23) Health and safety
A Definitions and applicability
This provision applies to all RJC members.
Employees include both directly employed workers that have contracts with the RJC member and indirectly employed workers
that regularly work at members’ sites and that have employment contracts with a third party, such as a labour agent, labour
provider or contractor/subcontractor.
A hazard is a source of potential harm, injury or detriment.
Health and safety includes a diverse range of initiatives intended to protect workers from exposure to short- and long-termrisks at work and to reduce workplace injuries and illnesses.
Personal protective equipment (PPE) refers to protective clothing and garments (such as gloves, footwear, helmets, goggles
and earplugs) designed to protect the wearer from exposure to job-related hazards.
Sources:• International Labour Organization (ILO), C155—Occupational Safety and Health Convention (1981)
www.ilo.org/dyn/normlex/en/f?p=NORMLEXPUB:12100:0::NO::p12100_instrument_id:312300• Social Accountability International (SAI), SA8000® Guidance Document (2014)www.sa-intl.org/index.cfm?fuseaction=Page.ViewPage&PageID=725

B Issue backgroundWork-related health and safety needs vary enormously across countries, sectors and social groups. Every year more than two
million people globally die from occupational injuries or diseases.1 Often it is the most disadvantaged and vulnerable groups
who are most affected by unsafe and unhealthy working conditions. These conditions are not limited to large-scale factories ormine sites; they can occur within small businesses and even within homes, for homeworkers.
Every worker has the right to a safe work environment. And every company has a fundamental responsibility to ensure
its workers are not harmed because of their work, and to consider the health and safety of other people in the workplace,including visitors and local communities.
Most company health and safety programmes focus on preventing injuries and illnesses at work by minimising specificoccupational risks and hazards. There are many such hazards in the jewellery supply chain: mines can be dangerous
workplaces, and precious metal and gemstone processing and refining can involve toxic chemicals and heavy machinery (seeTable 23.1). In addition, all workplaces carry a risk of injury or illness from general hazards, including slips and trips, manual
handling, workstation ergonomics, basic hygiene and transport.

1

ILO, Safety and Health at Workwww.ilo.org/global/topics/safety-and-health-at-work

184 RJC Code of Practices GuidanceTable 23.1. Occupational health and safety hazards often found in the jewellery supply chains
SectorCommon occupational health and safety hazards• Mine collapse, rock falls or subsidence.
• Vehicle-related accidents (including passenger vehicles and specialised mining vehicles).
• Working at heights and objects dropped from heights.
• Exposure to toxic chemicals (such as cyanide and mercury) or gases (such as carbon monoxide ormethane) or to hazardous substances (such as dust, which can cause silicosis, or radiation).
• Electrocution.

Mining• Lack or misuse of equipment, including PPE; or use of poorly maintained, outdated or otherwise
inappropriate equipment, causing injuries.
• Use and handling of explosive substances.
• Injuries with mechanical or manual tools.
• Noise, vibration (in particular with the use of jackhammers), heat, poor ventilation, overexertion andinadequate workspace, particularly in underground operations.
• Exposure to extreme heat and cold.
• Lack of knowledge or training, particularly among workforces with low levels of education.
• Vector-borne diseases such as malaria, yellow fever, dengue and others.
• Long and unsociable working hours and shifts.
• Exposure to molten metal, electromagnetic radiation and high temperature sources.

Gold, silver
and PGM
processing andrefining• Exposure to toxic chemicals including hydrochloric acid and chlorine fumes.
• Use of heavy machinery such as rotating plants.
• Use of dangerous equipment such as pumps, crushers and dryers.
• Vehicle-related accidents.
• Use of laser drilling and high pressure and high temperature treatments.
• Exposure to toxic chemicals, particularly:• hydrogen peroxide (bleaching);

Coloured
gemstonetreatments•

nitric acid (acid bleaching);•

sulfuric acid (colouration);•hydrofluoric acid (polishing);•

polymers (filling and impregnation);•

mercuric chloride (laquer and nacre);•silver nitrate (foiling);•

metal oxides (surface and backing coatings);•

coloured dyes (dyeing);•

beryllium (used in the diffusion process); and•trace elements (emitted during treatments like heating).

• Exposure to radioactive diamonds and gemstones during irradiation treatments.
• Dust inhalation, eye strain, poor posture leading to back and shoulder problems.
• Long working hours.

Cutting andpolishing andjewellery
manufacturing• Lack or misuse of equipment, including PPE, or use of poorly maintained, outdated or otherwise
inappropriate equipment.
• Locked emergency exits.
• Unhealthy or unsanitary working conditions, including poor ventilation.
• Cramped and unsafe on-site housing with limited facilities for washing, sleeping and preparing food.
• Lack of training on chemical substances and protective measures.
• Exposure to toxic fumes and chemicals.
• Eye strain.

Trading, service
industries andretail• General workplace risks, including slips and trips, manual handling, workstation ergonomics, basic
hygiene and transport.
• Repetitive strain or eye strain.

RJC Code of Practices Guidance 185

Figure 21.1. The nine components of a robust health and safety programme. (These aligndirectlySome
withbusinesses
COP provisions
look beyond21.1–21.9.)
simply preventing injury and illness to develop health and safety programmes that support thegeneral health and well-being of workers. This involves incorporating, for example, strategies to tackle stress, obesity, fatigue
or substance addiction and abuse, and initiatives to promote fitness for work, reproductive health and work–life balance.
Implementing a holistic approach to health and safety in the workplace can deliver substantial productivity benefits.2
These include:• fewer injuries and illnesses among workers;• fewer sick days;• fewer insurance claims, premiums and regulatory fines; and• stronger staff motivation and performance.
In contrast, poor health and safety management programmes result in more sick days, higher accident rates and greater
reputational risks, which can impact commercial performance. The International Labour Organization (ILO) estimates the
economic burden of poor occupational safety and health practices at 4 per cent of global gross domestic product each year.3
There are lots of different approaches to implementing health and safety, but a robust programme will include nine key
elements, ranging from policies, procedures and infrastructure to training, equipment and incident investigation (see Figure23.1). Even in small businesses, aspects of each of these will need to be included (see box ‘Managing health and safety in small
businesses’ in Section D).

1

Policies andprocedures

2

Workplaces3

Risk
assessment

4

Health and safetycommittees

5

Training andcommunication

6

Protective
equipment

7

Medicalfacilities

8

Emergency
procedures

9

Incident
investigation

Figure 23.1. The nine components of a robust health and safety programme (these align directly with COP provisions 23.1–23.9)

2

PricewaterhouseCoopers, Building the Case for Wellness (2008)https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/209547/hwwb-dwp-wellness-report-public.pdf

3

ILO, International Labour Standards on Occupational Safety and Healthwww.ilo.org/global/standards/subjects-covered-by-international-labour-standards/occupational-safety-and-health

186 RJC Code of Practices GuidanceC Key regulations, standards and initiatives
International standards
The ILO has more than 70 conventions and recommendations on health and safety issues. These cover preventative andprotective measures and include both general risks that apply to multiple sectors as well as specific risks found in individual
industries. A select few are summarised below.
• The Occupational Safety and Health Convention, 1981 (ILO C155)4 sets the standards for promoting occupational healthand safety and for improving working conditions at the national and company level. This includes setting out company
obligations to ensure that processes and equipment are safe, and that workers have access to protective clothing andequipment where necessary.
• The Promotional Framework for Occupational Safety and Health Convention, 2006 (ILO C187)5 was established topromote a preventative safety and health culture. Under ILO C187, countries are required to develop, in consultation withstakeholders, a national policy, system and programme on occupational safety and health. This includes establishing the laws,
regulations, authorities and compliance mechanisms needed to implement the national policy at the company level.6• The Safety and Health in Mines Convention, 1995 (ILO C176),7 which came into force in 1998, regulates various aspectsof health and safety in mines, including inspection, special working devices and special protective equipment of workers. It
includes recommendations on issues such as handling of chemicals, emergency preparedness and the right of employees toreport accidents to local authorities. It also prescribes requirements relating to mine rescue.
In 2018, the International Organization for Standardization (ISO) released a new international standard on occupational
health and safety (ISO 45001),8 which offers a framework for improving employee safety, reducing workplace risks andcreating better, safer working conditions. ISO 45001 aligns with ILO conventions, recommendations and guidelines as well as
various national standards. It replaces the widely used British standard for occupational health and safety management BS
OHSAS 18001. (Note that all companies certified to BS OHSAS 18001 will need to upgrade to ISO 45001 by March 2021.)
ISO 45001 is also one of the standards the RJC recognises for compliance with specific parts of this provision (see Assessment
Manual).
Beyond the ILO and ISO instruments, industries and organisations have developed their own voluntary standards and guidance
to help improve workplace health and safety and address industry-specific risks. These include:• The International Council on Mining and Metals (ICMM) 10 Principles (www.icmm.com/en-gb/members/membercommitments/icmm-10-principles) Membership of ICMM requires a commitment to the 10 principles, which serve as a bestpractice framework for sustainable development in the mining and metals industry. ICMM Principle 5 requires members to‘pursue continual improvement in health and safety performance with the ultimate goal of zero harm’.9• The International Cyanide Management Code (www.cyanidecode.org) focuses exclusively on the safe management ofcyanide in gold and silver mining, and is addressed in COP 40 Cyanide.
The International Finance Corporation (IFC) Environmental and Social Performance Standards (‘IFC Performance Standards’,
www.ifc.org/performancestandards) define IFC clients’ responsibilities for managing environmental and social risks. A global
benchmark on good practice, these comprise eight performance standards, including:• Performance Standard 2: Labor and Working Conditions, which includes requirements for companies to provide safe andhealthy working conditions.
The IFC Performance Standards are embedded in the Equator Principles (http://equator-principles.com); see COP 24
Environmental management for more information.
The World Bank Group Environmental, Health, and Safety Guidelines (EHS Guidelines, www.ifc.org/ehsguidelines) arereferred to in the World Bank’s Environmental and Social Framework and in IFC Performance Standards and include specificguidelines on occupational health and safety, including general and sector-specific examples of best practice.
More generally, workplace health and safety is part of a broader human rights framework that is addressed under the UN
Guiding Principles on Business and Human Rights10 (see COP 6 Human rights).

4

ILO, C155—Occupational Safety and Health Convention (1981) www.ilo.org/dyn/normlex/en/f?p=NORMLEXPUB:12100:0::NO::p12100_instrument_id:312300

5

ILO, C187—Promotional Framework for Occupational Safety and Health Convention (2006)
www.ilo.org/dyn/normlex/en/f?p=NORMLEXPUB:12100:0::NO::P12100_ILO_CODE:C187

6

Note that this framework is currently open for denunciation and as a result its enforcement may change.

7

ILO, C176—Safety and Health in Mines Convention(1995) www.ilo.org/dyn/normlex/en/f?p=NORMLEXPUB:12100:0::NO::P12100_ILO_CODE:C176

8

ISO, ISO 45001: Occupational health and safety www.iso.org/iso-45001-occupational-health-and-safety.html

9

ICMM, Principle 5 www.icmm.com/en-gb/members/member-commitments/icmm-10-principles/icmm-principle-5

10

UN Human Rights, Guiding Principles on Business and Human Rights (2011) www.ohchr.org/Documents/Publications/GuidingPrinciplesBusinessHR_EN.pdf

RJC Code of Practices Guidance 187

Consumer protection
Under the 2016 UN Guidelines for Consumer Protection,11 countries have a duty to protect consumers from hazards
to their health and safety. Many countries have consumer protection rules and regulations to ensure that products andservices are safe and do not pose risks to consumers.
In addition, the ISO has developed a range of international guidelines that cover all aspects of product safety, including
product recall procedures, child-related products, cross-border trade and product safety. For example, ISO 10377(www.iso.org/standard/45967.html) offers suppliers practical guidance on assessing and managing the safety of consumer
products.
Most jewellery products do not pose health and safety risks to consumers. But it is still important that companies assess
any potential risks to their consumers and that they mitigate these to ensure their products are safe—first during productdesign, and again if required during quality assessments before sale. In particular, businesses are generally responsible for:• adhering to national and international product safety laws, standards, regulations and bans;• communicating health and safety information through product disclosures and labelling (see COP 28.2 Productdisclosure);• monitoring the safety of products over their lifecycle and documenting any issues; and• acting on safety issues once you become aware of them, including product recall.
11

National law
Regulation on health and safety in the workplace largely resides at a national or even local level; many countries have entire
government departments to oversee occupational health and safety.
Enforcement of health and safety legislation varies from country to country, as do sanctions for non-compliant employers.
In some countries, local law may require companies to provide rehabilitation or compensation for injured workers. Serious
accidents at work often incur significant fines or compensation costs and can jeopardise operating licences and other permits.
There are usually substantial penalties attached to any criminal conviction; in some jurisdictions, these can include personalcriminal liability for a company’s senior managers or directors.

Health and safety in India: combining national and COP expectations
The Indian Factories Act of 1948 sets out requirements for factories of a certain type and size that are potentially relevant
to COP 23. Recognising the challenges that exist in meeting some of these requirements, the RJC has developed four
conformance criteria for factories in India that fall within the remit of the Indian Factories Act.
1. Engagement of a safety or welfare officer. Recruiting degree-qualified professionals for these roles can be a challenge
in some parts of India. In these situations, you can engage safety and welfare officers with other relevant forms ofexternal health and safety training to achieve conformance.
2. Provision of an ambulance room, trained nurse and doctor on premises. The COP requires that workplaces have firstaid provisions and at least one trained first-aid provider, and absence of these constitutes a major non-conformance.
Having an on-site facility such as a first-aid, ambulance or nurse room, with access to appropriate transport to local
hospitals, will be considered conformance with this requirement. Other acceptable approaches include several
factories pooling resources to support a shared ambulance room.
3. Provision of canteen. If a factory has a canteen for its workers, it must be sanitary and provide access to safe andpotable drinking water to conform with COP 23.2a and b. If there is no canteen, the provision of a meal allowance
combined with adequate time and physical access to food prepared outside the factory is enough to achieve
conformance.
4. Provision of crèche. If a factory provides a crèche for its workers, it must be sanitary and provide access to safe potabledrinking water and clean and hygienic washing and toilet facilities to conform with COP 23.2a, b and c. If workers do
not wish to use an on-site crèche, conformance can be achieved by showing signed letters from all relevant employees
indicating that they have sufficient access to off-site childcare. Auditors must verify through worker interviews that no
coercion was involved in obtaining these statements.

11

UN, United Nations Guidelines for Consumer Protection (2016) https://unctad.org/en/Pages/DITC/CompetitionLaw/UN-Guidelines-on-Consumer-Protection.aspx

188 RJC Code of Practices Guidance

RJC members are responsible for identifying, and staying up to date with, all relevant health and safety laws and regulations,
including:• consumer health and safety laws (which may fall under legislation for consumer protection);• trade or nuclear regulation;• reporting requirements;• enforcement processes; and• penalties for non-compliance.

D Implementation guidance
COP 23.1: Working conditions
Members shall provide safe and healthy working conditions for all employees in accordance with applicable law andother relevant industry standards.

Points to consider:• Health and safety is important for all workplaces, including office environments. Regardless of your type of business, youmust provide your workers with:•a safe workplace and safe ways of working;•equipment, tools and machinery in a safe condition;•

secure facilities for storing chemicals used in the workplace;•safe and hygienic facilities, including toilets, eating areas and first aid;•

information, training and supervision;•

a way to be consulted about, involved in and informed of decisions that may affect their health and safety; and•processes for identifying hazards and assessing and controlling risks.

• At each workplace, make a senior manager responsible for on-site health and safety.
• Establish procedures to identify and keep up to date with legislation on workplace health and safety, as well as regulatory
guidance, compliance issues and procedures, and reporting and record-keeping requirements in all jurisdictions of company
operations.
• Seek to establish a safety culture within the workplace:•

Develop a written policy, alongside procedures and management systems, for workplace health and safety.

•

Communicate these to workers and incorporate them into new hire induction programmes and orientation sessions. Make
sure they are written in language that workers can understand and display them in common areas in the workplace.

• Health measures should also be considered, for example:•

Annual health plans can be used to promote a health culture. Make sure you seek the formal input of all groups of workers,
especially vulnerable groups, in developing these.

•

Health data, disaggregated by sex and age, can also be gathered and reviewed by relevant worker committees andmanagement to track health.

•If you have any health staff, they should participate in all worker committees and, as appropriate, management committees
to engage on health issues and activities.

RJC Code of Practices Guidance 189

COP 23.2: Workplaces
Members shall provide and maintain workplaces, and on-site housing where relevant, with:a. Safe and accessible potable drinking water.
b. Sanitary facilities for eating and storing food.
c. Clean and hygienic washing and toilet facilities commensurate with the number and gender of staff employed.
d. Fire safety equipment and alarms.
e. Clearly marked, unlocked and unblocked emergency exits and escape routes.
f. Access to adequate power supply and emergency lighting.
g. Childcare and breastfeeding facilities in accordance with applicable law.
h. Suitable conditions for pregnant or nursing women, or alternative working arrangements to avoid unsuitable workplaces.

Points to consider:• Make sure that all your buildings follow applicable law and that:•

all facilities adhere to local regulations and building codes, and have the right permits in place.

•

any on-site housing or other workers’ accommodation meets local standards on space, privacy and storage of personal
items—note that if local law does not define any standards, you should follow international standards such as the workers’
accommodation standards developed by the IFC and European Bank for Reconstruction and Development (EBRD).12

Food, water and sanitation• In all facilities and on-site accommodation, make sure you give workers access to:•running water, soap and towels or other drying devices;•a safe place to store food; and•as much potable water as they need—if contamination risks are high, carry out regular tests to ensure the water remains
safe to drink, and keep records of the results.

• If you operate a cafeteria or canteen that handles food for workers, make sure:•

it complies with all relevant food safety and hygiene legislation; and•all staff working in it are given hygiene training or have relevant food-handling certifications.

• If you provide showers for workers, make these gender-specific (unless they are in a private room intended for individual use
with a lockable door).

Fire safety and emergency exits• All your facilities and on-site accommodation should have fully operational fire safety equipment (including fire
extinguishers) that:•complies with local law, including requirements for the number and type of equipment and where it is placed;•is appropriate to the type of potential fire risks on-site and close to potential sources of ignition; and•is well maintained and routinely checked to confirm it works and is accessible and easy to use.

• All your facilities and on-site accommodation must also have an appropriate number of emergency exits, based on thebuilding’s structure, the number of workers and local regulations.

12•

Exits must not be locked or impeded (although they may be alarmed). Note that if you have security guards at exits, youmust give them special training to ensure workers can leave without restrictions during an emergency.

•

Exits should be easily identifiable, even if the building loses power. This means you need backup power to provide
emergency lighting and signage in case of power outages.

•

All exits should lead to open areas and pathways. You will also need an assembly point for workers to safely gather in caseof an emergency.

IFC/EBRD, Workers’ Accommodation: Processes and Standards (2009) www.ebrd.com/downloads/about/sustainability/Workers_accomodation.pdf

190 RJC Code of Practices Guidance• Get your managers to monitor conditions and confirm ongoing conformance with these requirements through regular visits
to your sites. These visits should include:•

checking that exits and walkways are kept clear; and•confirming that supervisors and workers understand their responsibility to keep exits and walkways clear.

Nursing and expectant mothers• Give nursing and expectant mothers special consideration to ensure their work does not put them or their children at risk. In
practice, that means:•establishing procedures to assess potential risks in the workplace;•minimising those risks by, for example, assigning them different tasks or workloads; and•communicating with managers and supervisors to ensure nursing and pregnant workers are not discriminated against
because of their condition (see COP 22 Non-discrimination).

COP 23.3: Risks of workplace hazards
Members shall assess the risks of workplace hazards and implement controls to minimise the risks of accidents andinjury to employees. The risk assessment shall consider hazards associated with the members’ activities and products
which shall include, where relevant, use of machinery and mobile equipment; storage and handling of chemicals
including cleaning materials; exposure to excessive fumes, airborne particles, noise and temperature levels, and/or
inadequate lighting and ventilation; repetitive strain activities; considerations for any workers under 18 years of age
and expectant mothers; and general hygiene and housekeeping issues.

Points to consider:• Carry out a risk assessment appropriate to your business’s context and identify where risks may arise, how likely they are
and which practices and procedures could be improved to prevent them.
•Your assessment should consider risks associated with each of the hazards listed in COP 23.3 and should also include
evaluating the risk of different emergencies (see COP 23.8).

•

The RJC hosts a risk assessment toolkit that includes a general risk assessment template you might find useful, especially if
you are a small business. Alternatively, use your own tried and tested risk assessment process.

• Consider your improvement opportunities to address risks using a hierarchy of hazard controls (see Figure 23.2) thatprioritises action in the following order:•

Eliminate the hazard by removing or modifying the activity causing it—for example, swapping hazardous chemicals for safe
ones, or using different manufacturing processes.

•

Control the hazard at the point where it starts—for example, installing local ventilation or dust extraction systems,
isolation rooms or acoustic insulation and noise control systems.

•

Minimise the hazard by designing safe work systems and/or taking administrative or institutional measures—for example,
providing training or communication materials on safe work procedures, monitoring the workplace, limiting exposure or
working hours, or promoting job rotation and better use of PPE.

RJC Code of Practices Guidance 191

Most effective
Physically remove
the hazard

Elimination

Replacethe hazard

Substitution

Engineering
controls

Isolate people
from the hazard

Administrative
controls

Avoid the hazard bychanging how people work

PPE
Least effective

Protect against thehazard by using PPE

Figure 23.2. The hierarchy of hazard controls
Source: CDC, Hierarchy of Controls www.cdc.gov/niosh/topics/hierarchy• Use the results of your risk assessment to develop an action plan, and establish systems to:•implement actions in a timely manner;•

regularly review risks to see if the actions taken have worked, and to identify any new risks; and•document all risk assessments, action plans and actions taken.

COP 23.4: Health and safety committees
Members shall provide employees with a mechanism, such as a joint health and safety committee, by which they canraise and discuss health and safety issues with management.

Points to consider:• Establish procedures for workers to choose representatives for the joint health and safety committee (or equivalentmechanism), for example through the union or workforce nominations or elections.
• Make sure that the committee includes:•a senior manager, wherever possible;•

any on-site health staff; and•representation to reflect the size and structure of your facility—for example, if you operate multiple shifts, the committee
should include representation from all shifts.

• If on-site contractors are not eligible to participate, make sure the committee can still function as a mechanism for them toraise health and safety issues.
• The committee should meet regularly and serve as a forum to discuss health and safety matters requiring collaboration
between management and workers, for example:•

the root causes of recent accidents and how to prevent recurrences;•the effectiveness of training;•potential health and safety risks; or•short- and long-term health trends identified by employees, contractors or management.

192 RJC Code of Practices Guidance• The committee should also consider whether there are special needs for different groups within the workforce, such as
women or migrants. This could include reviewing accidents or injuries by group and taking appropriate action.
•

For example, if women are not using their PPE, the committee should talk to female workers to find out why: it may
be because they don’t understand the benefits, or it may simply be because the PPE wasn’t designed for women and is
uncomfortable to wear or impractical to use.

• Consider using both formal and informal channels to get workers’ input on potential risks or improvements for thecommittee’s consideration, including surveys or roundtables and suggestion boxes or team meetings.
• Either way, make sure that workers can raise health and safety issues without fear of criticism or reprisal.
• Keep a record of all committee meetings, including matters discussed and actions taken.

COP 23.5: Training
Members shall provide training and information about health and safety to employees in a form and language they canunderstand. This will include training and information on:
a. Specific role-related health and safety hazards and controls.
b. Appropriate action in the event of an accident or emergency.
c. Fire safety and emergency procedures.
d. First-aid training for designated employee representatives.
e. Workers’ right and responsibility to stop work or refuse to work in situations with uncontrolled hazards, and to
immediately flag these situations to those at imminent risk and to management.

Points to consider:• One of the most effective ways to implement health and safety procedures is through training, including both generaltraining on facility-wide health and safety policies and emergency protocols, as well as job-specific training on, for example,
how to handle hazardous materials, operate heavy machinery or use PPE.
•

General safety training should be given as part of a new employee’s induction or orientation process.

•Job-specific safety training should also be given when a new employee starts, as well as every time an employee has to do a
new type of work or use a new piece of equipment.

• Make sure you also give extra, relevant training to:•

all employees with emergency responsibilities—for example, training fire wardens in how to use firefighting equipment,
and training first-aid responders in how to administer first aid; and•all managers on how to coach employees who do not comply with health and safety procedures, and what to do if
protocols are not followed.

• In all cases:•

Training can be formal (for example, facilitated training sessions) or informal (for example, job shadowing).

•

Training must be given free of charge, during working hours.

•

Training formats and materials must take gender, language and levels of education into account.

•

Records of any training given, including who it was given to, must be kept.

• Monitor and test employees to confirm they are following safety procedures correctly. Consider setting targets to encourage
employees to follow key procedures.
• Consider displaying safety procedures and information in areas where high-risk activities are performed, using simple signs
and symbols where appropriate.
•

Make sure these materials are written at an appropriate literacy level for most of your workers and in languages mostworkers can read.

•

If a worker is illiterate or cannot read these materials because of language barriers, make sure a manager trains the worker
verbally.

COP 23.6: Personal protective equipment
Members shall ensure that appropriate personal protective equipment (PPE) is provided free of charge and verify that
it is current and correctly worn or used.

RJC Code of Practices Guidance 193

Points to consider:• PPE includes protective clothing and any other garment (including gloves, protective footwear, helmets, goggles andearplugs) designed to protect the wearer from exposure to job-related occupational hazards.
•

Note that some businesses also have additional requirements for safe attire in the workplace, for example long sleeves,closed footwear or respirators.

• Use a robust selection process when buying PPE to ensure it is fit for purpose (see Figure 23.3).

Ensure suitability

Check compatibility

Ensure the PPE is ﬁt for thetask while adequately
addressing the risk.

Where relevant, conﬁrm multiple PPE is
compatible (e.g. Earmuffs with a hard hat).

3

Consult
users
Consult users
on risks andrequirements.

42

Considerneeds

5Consider workers’
medical conditions andﬁtting requirements.

6

Choose PPE

Choosing
PPE
Evaluaterequirements
Evaluate the risk
and identify PPE
requirements.

1

Where possible,
choose PPE thatcomplies withrecognised standards.

Figure 23.3. Six steps in choosing the right PPE to buy• PPE needs to be appropriate, clean, hygienic, properly maintained and stored, and replaced when it expires or is damaged. To
help ensure this:•establish procedures for when and how each piece of PPE should be used in relation to specific job functions; and•develop guidance on how the equipment should be stored when not in use.

• Train all workers that have to wear PPE on how to use and store the equipment, and why this is important.
• Put up signs everywhere that workers have to use PPEas a reminder of what type of PPE should be used. Make these signs
available in multiple languages as appropriate to most workers.

COP 23.7: Medical facilities
Members shall provide access to adequate on-site first-aid provisions and trained first aid personnel, have appropriate
procedures for transportation to local medical facilities in the case of a medical emergency and assist workers withwork-related injuries to physically access medical treatment in accordance with country law and company policy.

Points to consider:• Make sure all your sites have, at a minimum, first-aid provisions and at least one trained first-aid responder, even in low-risk
environments close to a health clinic or hospital.
• The first-aid response and medical care available must be adequate to the workplace, and take into account the number ofworkers, the risks of workplace hazards, proximity and means of transport to clinics or hospitals, and access to services afterwork hours.

194 RJC Code of Practices Guidance• If your site is far from a medical facility, consider providing an on-site medical facility that can respond to workplace injuries.
• If you have an on-site medical facility, note that you must be able to give health providers accurate information if they ask for
it. You must also keep health records for as long as the law says you have to, which could be up to 30 years. Records should
include information on:•

the facility’s exact location and hours of operation;•

the gender of healthcare providers at the facility;•

the types of health products and services available and related costs (if any);•

how much each product and service costs; and•the general quality of care.

Note that you must not give out worker-specific medical information unless the worker asks you to and local laws on healthprivacy allow you to.
• Give all first-aid responders appropriate first-aid training, focusing on the most significant risks and most common accidents
in your facility.
• If a worker is injured at work, make sure they can access any follow-up medical treatment they need. This includes arranging
transport to a medical facility immediately after first-aid treatment if necessary, and adjusting the worker’s work schedule toaccommodate treatment.
• Consider making personal health and well-being materials and services available to employees. This includes, for example,
materials on how to manage common health problems such as depression, alcohol or back pain, as well as services suchas maternal and reproductive counselling or medicines and vaccines against common illnesses. Investing in prevention
activities like these can reduce unplanned absences and boost productivity in the workplace.

COP 23.8: Emergency procedures
Members shall establish emergency procedures and evacuation plans for all reasonably foreseeable health and safety
emergencies. These shall be accessible or clearly displayed, regularly tested (including through evacuation drills) andperiodically updated.

Points to consider:• Your risk assessment should have identified all reasonably foreseeable emergencies, which may include fire, explosion,
medical emergency, incidents with hazardous chemicals, bomb threats, armed confrontations and natural disasters (see COP
23.3).
• For each likely emergency:•

work with local emergency response services (including fire brigades, hospitals and the police) to develop and implement a
written emergency response plan outlining what workers and others in the workplace should do if the emergency arises;•

communicate the plan to workers; and•display the plan clearly in the workplace or make it readily available.

• If the emergency may impact nearby operations or communities, include these stakeholders in your emergency response
planning.
• Identify a common external assembly point across all the emergency response plans, where workers should meet during any
evacuation away from potential harm. Establish a process to ensure all personnel are accounted for in an evacuation, andmake sure all evacuation routes and exits are prominently displayed.
• Test all your emergency plans regularly. Evacuation drills are important to confirm that everyone can be quickly and safely
evacuated during an emergency; do one every six months and keep a record of how long it takes to get everyone out.
•

Note that you can address concerns about product theft during emergency tests or evacuation drills by planning them inadvance and doing them after all product has been secured.

• Review and refine your plans regularly, drawing on lessons learned from tests, drills or actual incidents.

COP 23.9: Incident investigation
Members shall investigate health and safety incidents and feed the results into reviews of relevant hazard controls to
identify opportunities for improvement.

RJC Code of Practices Guidance 195

Points to consider:• Use incident investigations to try and find the root cause of any health and safety incident that arises (rather than justidentifying the last thing to take place before the incident happened).
• Make sure you also investigate near-miss situations, where the actual consequences were minor but the potential
consequences could have been serious.
• Establish procedures for notifying worker health and safety representatives of incidents and near-miss situations, andcommunicate these to all workers and supervisors.
• Include workers or their representatives in the investigation process; and where available and practicable, include
independent personnel or external experts in the investigation team, particularly for significant incidents.
• Document all incidents, making sure to record:•a description of the incident;•

the date and time of the incident;•

the name of the workers involved;•

the root cause;•

the actions taken to prevent recurrences; and•any other relevant details, such as compensation paid for lost earnings or productivity time lost during machine replacements.

• Keep records for as long as possible as they provide useful statistical data and help identify trends. At a minimum, you must
keep records of all incidents for as long as required by local regulations and at least three years.
•

Note that if there is potential for long latency diseases, such as noise-induced hearing loss or occupational cancers, youwill need to keep occupational health data for much longer, up to 30 years.

• Analyse your incident records every year to identify trends and feed your results into the next health and safety risk
assessment (see COP 23.3).

COP 23.10: Cobalt-free scaifes
Members engaged in the cutting and polishing of diamonds and/or coloured gemstones shall use cobalt-free diamondimpregnated scaifes.

Points to consider:• Inhaling cobalt-containing dust can have serious health effects.
• If you have a cutting and polishing facility, confirm that all diamond-impregnated scaifes used are guaranteed by the supplier
to be cobalt-free.

Check:■■Have you nominated a manager to be responsible for health and safety at each workplace?
■■Do you have health and safety policy and procedures and have these been communicated to all staff?
■■Do you have a system for staying up to date with local, national and international health and safety laws and regulations?
■■Are workplaces inspected to ensure conformance with the requirements set out in COP 23.2?
■■Have you assessed the risks of workplace hazards and implemented controls to minimise these?
■■Do you have a health and safety committee, and do you keep records of its meetings?
■■Is there a mechanism in place for workers to raise health and safety issues?
■■Do employees know what to do in the event of an accident or emergency?
■■Do you give training on general and job-specific health and safety in languages that workers understand?
■■Do you provide appropriate PPE, free of charge, and is this used in accordance with company policy and regulatory
requirements?

■■Are there adequate on-site health and medical facilities? If not, can you show there are adequate facilities within areasonable distance?

■■Are evacuation plans in place for reasonably foreseeable emergencies, and are these displayed and tested?
■■Have you considered the off-site implications of emergencies and worked with external stakeholders to develop
response plans?

■■Are procedures in place to investigate incidents? Do you keep incident records?
196 RJC Code of Practices GuidanceManaging health and safety in small businesses
Health and safety risks are specific to the type of business, industry and tasks performed. Small businesses may not require
the same level of controls as large companies, but they still have a responsibility to provide workers with a safe working
environment. Some of the most common health and safety risks associated with small business, and recommendations for how
to address these, are listed in the table below.
Risk

Recommendation

Fire

Ensure extinguishers are in place, maintained and clearly marked.
Ensure all fire exits and exit paths are not locked or obstructed and are accessible by workers. The number ofexits should comply with local law and be sufficient to the number of workers at the facility.
Keep plugs, sockets and switches in good condition. Keep floors clear of extension cords, which should betested and tagged where required by applicable law. Make sure safety switches are hardwired into electricalswitchboards.
Keep your workplace chemicals register and safety data sheets (SDS) up to date. Train employees in how tohandle and store chemicals to SDS guidelines.
Keep work areas clean, uncluttered and well lit, and make sure employees wear suitable footwear.
Make sure that racking systems are stable and in good condition, and that they comply with the specified safe
working load. Provide safe access to storage areas.
Eliminate or reduce noise from loud processes or equipment. Where applicable, give workers hearing protection
equipment and put up signs to indicate when and where it must be worn.
Ensure workers have and use the appropriate PPE. Do not charge workers for PPE.
Ensure mezzanine floors have safe access and fall protection, and that handrails are secure, steps are wellmaintained, and any platform ladders are industrial grade and comply with standards.
Eliminate all hazardous manual handling. Provide adequate space to work on or store items and use trolleys tomove them. Make sure work areas are between knee and shoulder height and are close to the worker’s body.
Keep a first aid box readily available and appropriately stocked. Make sure qualified first aid staff are available
and known to staff, and that you have sufficient amenities for all staff.
Provide safe access to machinery and equipment. Make sure moving parts cannot strike or reach people, andassess all other hazards associated with machinery such as fumes, chemicals and noise.
Have procedures for reporting and investigating health and safety incidents and communicate these to all
workers. Keep records of all incidents and actions taken.

ExitsElectrical
ChemicalSlips, trips and falls
Storage and racking
Noise
PPE
Heights
Manual handlingFirst aid
Machinery
Investigations

Workplace safety doesn’t have to be difficult. Use the following steps to improve the way health and safety matters in theworkplace are managed:
Step 1. Applicable law and responsibilities
The first place to start is to find out the occupational health and safety laws and regulations that apply to your business. In doing this,assign responsibility for required actions to the appropriate people in your business. This can form the basis of your approach tooccupational health and safety.
Step 2. Plan to work safely
Think about what activities happen in your facilities, identifying any potential risks to workers, and actions needed to control these risks.
Step 3. Involve your workers
It is important to talk to workers and indirect employees and set up ways for them to be involved in decisions that may affect health andsafety in the workplace. For example, raise health and safety issues with staff and display health and safety information in a format thatcan be easily understood.
Step 4. Develop procedures
Develop and implement procedures and processes to manage hazards. This includes implementing appropriate controls and assessing
any risks to health and safety with their use.
Step 5. Inform and train workers
Give employees, particularly those who are new to the workplace or job, information and training about hazards in their job andworkplace. This may vary from a simple training checklist to on-the-job or more formalised training. Use the most appropriate or a
combination, based on the nature of the activities, the hazards and the controls. Ensure all training provided is delivered in a manner
understood by workers. This may mean having multiple translations of written training materials and posters.
Step 6. Monitor and review
Regularly monitor and review all steps you have taken to manage health and safety. Adjust the controls, procedures and information
to address any changes to the law or changes to the activities and materials handled in your premises. Managing health and safety is
an ongoing process that should form part of the way you do business. Your processes, operation and staff may change over time and so
may the risks. Make sure you continually review your systems to ensure they still provide for the wellbeing of employees and on-site
contractors and a safe workplace environment.

RJC Code of Practices Guidance 197

E Further information
Websites:
International Council on Mining and Metals (ICMM)
www.icmm.com
International Finance Corporation (IFC), Environment, Health, and Safety Guidelines
www.ifc.org/wps/wcm/connect/topics_ext_content/ifc_external_corporate_site/sustainability-at-ifc/policies-standards/ehsguidelines
ILO, International Labour Standards on Occupational Safety and Healthwww.ilo.org/global/standards/subjects-covered-by-international-labour-standards/occupational-safety-and-health/lang--en/index.htm
National Skin Centre, Nickel Allergy
https://www.nsc.com.sg/Patient-Guide/Health-Library/Types of Skin Conditions/Pages/Nickel-Allergy.aspx
Ohio University, Risk Management andSafety: Irradiated gemstones
www.ohio.edu/riskandsafety/radiationsafety/irradiated.htm
Safety Information Resources, Inc. (SIRI), SIRI Material Safety Data Sheet (MSDS) Index
http://hazard.com/msds/index.php
Social Accountability International (SAI), SA8000® Standard
www.sa-intl.org/index.cfm?fuseaction=Page.ViewPage&PageID=1689

Publications:
Asia Monitor Resource Centre, Silicosis in the Gemstone-Processing Industry: Loopholes in China’s OSH Laws (2007)https://amrc.org.hk/content/silicosis-gemstone-processing-industry-loopholes-chinas-osh-laws
China Labour Bulletin (CLB), CLB Research Series: No. 1 Deadly Dust (2005)
www.clb.org.hk/en/content/deadly-dust
ICMM, Community Health Programs in the Mining and Metals Industry (2013)www.icmm.com/en-gb/publications/mining-partnerships-for-development/community-health-programs-in-the-mining-andmetals-industry
ICMM, Good Practice Guidance on Occupational Health Risk Assessment (2017)www.icmm.com/gpg-occupational-health
ICMM, Good Practice in Emergency Preparedness and Response (2005)
www.icmm.com/en-gb/publications/health-and-safety/good-practice-in-emergency-preparedness-and-response
ICMM, ICMM Sustainable Development Framework [ICMM Principle 5] (2003)
www.iucn.org/sites/dev/files/import/downloads/minicmmstat.pdf
IFC, Environmental, Health and Safety Guidelines for Mining (2007)
www.ifc.org/wps/wcm/connect/1f4dc28048855af4879cd76a6515bb18/Final+-+Mining.pdf?MOD=AJPERES
IFC, General Environmental, Health, and Safety Guidelines: Community Health and Safety (2007)
www.ifc.org/wps/wcm/connect/dd673400488559ae83c4d36a6515bb18/3%2BCommunity%2BHealth%2Band%2BSafety.
pdf?MOD=AJPERES
IFC, General Environmental, Health, and Safety Guidelines: Occupational Health and Safety (2007)
www.ifc.org/wps/wcm/connect/9aef2880488559a983acd36a6515bb18/2%2BOccupational%2BHealth%2Band%2BSafety.
pdf?MOD=AJPERES
ILO, C155—Occupational Safety and Health Convention (1981)
www.ilo.org/dyn/normlex/en/f?p=normlexpub:12100:0::no::p12100_instrument_id:312300
ILO, C176—Safety and Health in Mines Convention (1995)
www.ilo.org/dyn/normlex/en/f?p=1000:12100:0::NO::P12100_ILO_CODE:C176
ILO, Occupational Safety and Health in Global Value Chains Starterkit (2018)www.ilo.org/safework/projects/WCMS_635157/lang--en/index.htm
ILO, R183—Safety and Health in Mines Recommendation (1995)
www.ilo.org/dyn/normlex/en/f?p=1000:12100:0::NO::P12100_ILO_CODE:R183

198 RJC Code of Practices Guidance

ILO, Safety and Health in Opencast Mines (1991)
www.ilo.org/wcmsp5/groups/public/@ed_protect/@protrav/@safework/documents/normativeinstrument/wcms_107828.pdf
Mining, Minerals and Sustainable Development (MMSD), Worker and Community Health Impacts Related to Mining
Operations Internationally (2001)
http://pubs.iied.org/pdfs/G01051.pdf
Mining Association of Canada (MAC), Crisis Management and Communications Planning Reference Guide (2016)
http://mining.ca/sites/default/files/documents/Crisis-Management-and-Communications-Planning-Reference-Guide-2016.
pdf
Ritimo, The Silent Killer: Agate Workers in Khambat Fight Against Silicosis (2013)www.ritimo.org/The-Silent-Killer-Agate-Workers-in-Khambat-Fight-against-Silicosis
Rosner, D. and Markowitz, G., Deadly Dust: Silicosis and the Ongoing Struggle to Protect Worker’s Health (2006)
www.press.umich.edu/pdf/9780472031108-fm.pdf
Sedex and Verité, Fire Safety Briefing (2013)https://cdn.sedexglobal.com/wp-content/uploads/2016/09/Sedex-Briefing-Fire-Safety.pdf
UK Health and Safety Executive, Storing chemicals (2011)www.hse.gov.uk/pubns/guidance/ocm8.pdf
UN Environment Programme, Awareness and Preparedness at the Local Level (APELL) for Mining (2001)
www.unep.fr/scp/publications/details.asp?id=WEB/0055/PA
US Nuclear Regulatory Commission, Backgrounder on Irradiated Gemstones (2016)
www.nrc.gov/reading-rm/doc-collections/fact-sheets/irradiated-gemstones.html

RJC Code of Practices Guidance 199

(COP 24) Environmental management
A Definitions and applicability
This provision applies to all RJC members.
Employees include both directly employed workers that have contracts with the RJC member and indirectly employed workers
that regularly work at members’ sites and that have employment contracts with a third party, such as a labour agent, labour
provider or contractor/subcontractor.
The environment is the surroundings in which a company’s facility operates, including air, water, land, natural resources, flora,
fauna, habitats, ecosystems, biodiversity, humans (including human artefacts, culturally significant sites and social aspects)
and their interrelationships. The environment in this context extends from within a company’s area of operation to the global
system.
Environmental management is the process of regulating and administering environment-related risks and issues. It may
involve directly managing the environment itself, but is more often about controlling the organisation’s activities, products andservices that interact with the natural environment to minimise adverse impacts and, where possible, have a positive impact.
Residual risk is the risk that still remains after protective measures (risk reduction) have been taken.
Sources:• International Organization of Standardization (ISO), Terms and Definition in ISO 14001:2015—Where Did They Originate
From? (2015)
https://committee.iso.org/files/live/sites/tc207sc1/files/Terms%20and%20definitions%20in%20ISO%2014001_2015%20-%20where%20did%20they%20originate%20from.pdf• US Environmental Protection Agency Region 7, Safety, Health, and Environmental Management System Terms andDefinitions (2016)www.epa.gov/sites/production/files/2015-08/documents/r7-ems-terms-definitions.pdf

B Issue background
Environmental pollution, degradation and destruction can all adversely impact an ecosystem’s ability to function and carryout all the ecological processes it needs to sustain itself and maintain its evolutionary potential over the long term. When thishappens, the tangible and intangible benefits that ecosystems provide—ranging from fresh water and climate regulation to soil
fertility and cultural heritage—are reduced. We all rely on these ‘ecosystem services’ to survive; for many disadvantaged andvulnerable groups they also provide a direct source of livelihoods and income. This makes adverse environmental impacts ahuman rights issue (see COP 6 Human rights).
As members of both a global society and the local communities where they operate, businesses big and small have a moral
duty to sustain the environments and ecosystems around them. At the same time, companies have to minimise adverse
environmental impacts to comply with a fast-evolving set of national and international laws and regulations; and to meet thegrowing expectations of diverse stakeholders, including investors, consumers, communities and environmental organisations.
Good environmental management also makes good business sense. Experience shows that it can reduce operational costs,
improve sales and market access, increase worker engagement and enhance brand reputation.1 That is why many leading
companies are now embedding a strong regard for the environment into their core business functions like planning, operations
and sourcing. In doing so, they are effectively harnessing the same business systems and management approaches that maketheir overall enterprise successful.
Exactly how companies approach environmental management varies depending on the nature and scale of the business andthe risks and contexts at hand. But in general, an environmental management system is simply a structured framework for
managing people, processes and resources so that a company can minimise adverse impacts on its environment, identify
environmental benefits that it’s already providing, improve the environmental performance of its products and services, andboost productivity and profit.

1

BSI, ISO 14001 Environmental Management: It’s Your Responsibility (2013) www.bsigroup.com/LocalFiles/en-GB/iso-14001/resources/ISO-14001%20
Implementing%20Guide.pdf

200 RJC Code of Practices GuidanceThese systems usually comprise a set of operational procedures, practices, plans, and related documents (including legal
agreements). They almost always start with an assessment of overall operations and business partners and include activities to:• set tangible objectives (for example to reduce chemical use, decrease water and energy consumption, use less packaging or
packaging with fewer negative environmental impacts, or install pollution prevention measures);• implement action plans;• review the system and track progress; and• take corrective action.
In this way, environmental management systems work as a cycle of continual improvement, commonly known as the ‘Plan-DoCheck-Act’ cycle (see Figure 24.1).

Plan
Act
Correct and prevent
identiﬁed issues
Review impacts andobjectives

Assess andidentify impacts
Establish objectives
Develop plans toachieve these
Assign roles andresponsibilities

Continuous
improvement

Check
Monitor processes
Measure progress
Keep records

Do
Embed controls
and procedures
Build capacity andcompetence
Document andcommunicate

Figure 24.1. . The Plan-Do-Check-Act cycle for continuous improvement

RJC Code of Practices Guidance 201

C Key regulations, standards and initiatives
International standards
The UN Global Compact (www.unglobalcompact.org) is a voluntary initiative for businesses to support corporate
sustainability. It is built on 10 principles of responsible business that include three directly related to the environment: tosupport a precautionary approach to environmental challenges (Principle 7), to undertake initiatives to promote greater
environmental responsibility (Principle 8) and to encourage the development and diffusion of environmentally preferable
technologies (Principle 9).
The International Finance Corporation (IFC) Environmental and Social Performance Standards (‘IFC Performance Standards’,
www.ifc.org/performancestandards) define IFC clients’ responsibilities for managing environmental and social risks. A global
benchmark on good practice, these comprise eight standards, including:• Performance Standard 1: Assessment and Management of Environmental and Social Risks and Impacts, which describes therequirements for a good environmental and social management system.
• Performance Standard 3: Resource Efficiency and Pollution Prevention, which describes how to integrate practices andtechnologies that use resources more efficiently and sustainably, and that reduce greenhouse gas (GHG) emissions.
• Performance Standard 6: Biodiversity Conservation and Sustainable Management of Living Natural Resources, which setsout requirements for protecting biodiversity and ecosystems.
The IFC Performance Standards are embedded in the Equator Principles (http://equator-principles.com)—a risk management
framework adopted by 94 private financial institutions to ensure that the large-scale development projects they financeappropriately determine, assess and manage potential impacts on the environment and affected communities.
A range of other international initiatives and agreements are driving interest in strong environmental management, by states
and businesses alike. This includes agreements like the UN Framework Convention on Climate Change (UNFCCC) Paris
Agreement,2 which gives unprecedented recognition to the role that businesses have in mitigating and adapting to the impactsof climate change (see COP 27 Use of natural resources).
As the number of international standards and initiatives on environmental management rises, certifications like ISO
14001:2015 Environmental Management Systems (www.iso.org/standard/60857.html) have emerged to help businesses
establish and demonstrate effective environmental management systems. ISO 14001 provides a framework for organisations
to follow to minimise negative environmental impacts, meet legal obligations and adopt a continuous improvement approach.
It is also one of the standards RJC recognises for compliance with specific environment-related COPs (see Assessment
Manual).
ISO standards on environmental management extend beyond ISO 14001, to encompass more than 50 standards (publishedor under development) covering seven relevant topics, from auditing and labelling to performance evaluation and GHG
management (see Table 24.1 for the published ones).

2

UNFCCC, Paris Agreement (2015) https://unfccc.int/sites/default/files/english_paris_agreement.pdf

202 RJC Code of Practices GuidanceTable 24.1. Summary list of published ISO standards related to environmental management. Source: ISO. Standards Catalogue:
ISO/TC 207 Environmental Management www.iso.org/committee/54808/x/catalogue/p/1/u/1/w/0/d/0
ISO topic

Published standards• Guide 64:2008 Environmental issues in product standards

Environmental management• 14050:2009 Vocabulary

6 published standards• 14051:2011 and 14052:2017 Material flow cost accounting(5 more under development)• 14055-1:2017 Combatting land degradation and desertification• 14062:2002 Product design and development• 14001:2015 System requirements

Environmental management systems• 14004:2016 Implementation

5 published standards• 14005:2010 Phased implementation(5 more under development)• 14006:2011 Incorporating ecodesign• 14008:2019 Monetary valuation of environmental impacts

Environmental auditing and related
investigations• 14015:2001 Environmental assessment of sites and organisations

1 published standard(1 more under development)• 14020:2000 General principles
Environmental labels and declarations
6 published standards(none under development)• 14021:2016 Self-declared claims (Type II)• 14024:2018 Labelling (Type I)• 14025:2006 Declarations (Type III)• 14026:2017 Communicating footprint information• 14027:2017 Product category rules• 14031:2013 Performance evaluation

Environmental performance evaluation• 14033:2012 Quantitative information

4 published standards• 14034:2016 Environmental technology verification (ETV)(5 more under development)• 14063:2006 Communication• 14040:2006 Principles and framework• 14044:2006 Requirements and guidelines• (14044:2006 Amendment)• 14045:2012 Eco-efficiency assessment of product systems
Lifecycle assessment• 14046:2014 Water footprint

11 published standards• 14047:2012 Impact assessment(2 more under development)• 14048:2002 Data documentation format• 14049:2012 Goal and scope definition and inventory analysis• 14071:2014 Review processes and reviewer competencies• 14072:2014 Organisational life cycle assessment• 14073:2017 Water footprint examples• 14064-1:2018 Quantifying and reporting GHG at organisational level• 14064-2:2006 Quantifying and reporting GHG at project level

Greenhouse gas (GHG) management
and related activities• 14064-3:2006 Validating and verifying GHG assertions

8 published standards• 14066:2011 Competence requirements for validation and verification(9 more under development)• 14067:2018 Carbon footprint• 14065:2013 Validation requirements for accreditation• 14069:2013 Applying 14064-1• 14080:2018 Methods for climate actions

RJC Code of Practices Guidance 203

National law
The concept of environment, in legislative terms, has traditionally focused on human surroundings, both man-made andnatural. Most countries have formal laws and regulations governing the effects of businesses on the environment. Manyof these focus on controlling pollution, although an increasing number of countries now also regulate natural resource
management (including forests and minerals).
In many national and state jurisdictions, companies must be able to satisfy specific conditions on air and water quality, land
management, noise and waste disposal. Some kinds of industrial operations must also be licensed under environmental law andthese licences must be valid and complied with at all times.

D Implementation guidance
COP 24.1: Risks, impacts and performance
Members shall establish and implement an environmental management system.

Points to consider:• This provision is essentially about implementing the Plan-Do-Check-Act cycle of continuous improvement (see Figure 24.1).
• Your first step should be to clearly state your commitment to environmental management, either in a stand-alone
environment policy or as part of a broader company policy (see COP 2 Policy and implementation).
• Make a senior manager responsible for your environment policy, including oversight of an effective environmental
management system to fulfil the policy commitments.
•

Note that if you have more than one facility, each one should have an environmental management system in place unlessthe type of facility and location present the same risk in the same context, for example a chain of retail stores in one region.

• Follow the steps below to put your environmental management system in motion.

Using a lifecycle-based approach
The use of life-cycle approaches is integral to ISO 14001 on environmental management systems, which emphasises theneed to prevent environmental impacts from being unintentionally shifted elsewhere within the product lifecycle.
A business operation or company as a whole can contribute to various environmental impacts. Life-cycle thinking
considers the range of impacts throughout the operation or company, looking at emissions, wastes, and resources
consumed, and any other environmental impacts. For example, a decision to collect wastes in one part of operations
could result in an increase in emissions. Care needs to be taken to avoid shifting problems from one stage to another andconsider the trade-offs in an informed way.
In implementing your environmental management system, you should use life-cycle thinking using a common sense
approach, working with employees from different parts of the business to get an informed view on the whole lifecycle ofenvironmental impacts (although you do not need to do a full life-cycle analysis).
Sources:• ISO, ISO 14001:2015 Environmental Management Systems—Requirements with Guidance for Use
www.iso.org/standard/60857.html;• European Commission, Life Cycle Thinking and Assessment for Waste Management
http://ec.europa.eu/environment/waste/publications/pdf/Making_Sust_Consumption.pdf

204 RJC Code of Practices GuidancePlan
1. Assess risks and impacts• Review all business processes and activities to understand how your company interacts with the environment and to identify
any actual and potential environmental impacts, which may involve pollution of air, water or soils, use of materials andenergy, wastes and emissions, noise and visual effects.
•

Environmental impact assessments (EIAs) are a commonly used tool to identify real and potential risks. EIAs are legallyrequired in some countries as part of the approval process for development projects. They are common practice for mining
projects (see COP 34 Impact assessment) but are also relevant for any other large-scale project.

• Your risk assessment should be appropriate to your circumstances and should identify where the risks lie and how likely they
are to turn into real impacts. This will help you spot potentially deficient procedures so you can make appropriate plans to
mitigate the risks.
•

The RJC hosts a risk assessment toolkit that includes a general risk assessment template you might find useful, particularly
if you are a small business. Alternatively, use your own tried and tested risk assessment process.

• The risk assessment must identify significant environmental impacts. ISO 14001 defines this as ‘the potential or actual
environmental effect or risk … that an organization intends to manage or is managing through operational controls’.
Judgement must be used to determine what is significant taking into account:•all nearby environments and communities that may be affected, especially those that are sensitive and susceptible topollution or contamination, for example drinking water sources, sensitive plant and animal species and habitats (see COP
38 Biodiversity for mining impacts on areas of biodiversity importance); and•the receiving environment of any emissions and wastes—in highly industrial regions, your relatively low negative
individual impact may be contributing to a relatively high negative cumulative impact.

• Document both the process itself as well as any action plans that emerge from it to mitigate and monitor identified risks andimpacts.

2. Check legal compliance• Make sure you understand all applicable environmental laws and regulations.
• Establish a process to stay up to date with local legislation.
• Define operational controls and standard operating procedures to help managers and workers comply with all requirements.

3. Set targets• Establish a robust set of objectives, targets and key performance indicators that can be used to guide and evaluate
improvements in your environmental performance (as well as in the management system itself).
• Example targets could include reducing GHG emissions, decreasing water and energy consumption, using fewer raw
materials or more environmentally preferable materials, reducing the use of chemicals and hazardous materials, andtransitioning to zerowaste.

4. Identify options• Use the results of your risk assessment to identify improvement opportunities and determine what action is needed where.
• Note that the RJC expects all members, regardless of whether their operations have the potential to cause significant
adverse impacts on the environment or not, to identify and implement opportunities to improve performance (for example,
by recycling, using resources and materials more efficiently and switching to less hazardous substances).
• In considering your opportunities to improve environmental performance, remember to:•

use the mitigation hierarchy and first ask how you can eliminate the risk or impact at source before thinking about what
controls are needed to minimise it (see COP 24.2); and•give preference to the option that is most likely to avoid irreversible damage to the environment and is cost-effective(including consideration of a ‘do nothing’ option).

Do• When developing controls to manage identified risks and minimise negative environmental impacts, use the mitigation
hierarchy (see Figure 24.2). This tool, commonly used by mining companies to address biodiversity risks, offers a bestpractice approach to achieving no overall negative environmental impacts.
• Like the hierarchy of hazard controls described in COP 23.3 Health and safety, the mitigation hierarchy involves prioritising
options in a sequential way, starting with action to avoid impacts, followed by action to minimise them. If the negativeenvironmental impacts are significant, it can also be appropriate to restore and, finally, offset them.
•

Note that you should only choose to offset environmental impacts as a last resort to tackle residual impacts. In all cases,
residual impacts must be permitted under applicable national law.

RJC Code of Practices Guidance 205

Most effective

Avoid

Anticipate or avoid the impact
by designing it out of operations
e.g. substitute harmful
chemicals or raw materials

Minimise

Minimise or mitigate the impact
through controls that reduce its
duration, intensity or extent e.g.
reduce use of pollutants andtreat efﬂuents

Preventive

RestoreRemediative

OffsetRehabilitate or restore impacted
environments e.g. reforest
cleared areas and clean up
polluted waterways
Compensate or offset
residual impacts as a lastresort e.g. establish livelihood
replacement activities

Figure 24.2. The mitigation hierarchy• In practice, implementing options in the mitigation hierarchy may involve changing operational processes, products, work
practices or raw materials.
• Consider developing written specific policies and procedures for these control measures when business operations andprocesses have the potential to cause significant impacts or breach environmental regulations.

Check and act• Monitor, measure and report on processes, discharges and emissions, as appropriate.
•

Quantifying changes in impacts can be a useful way to track improvements; however, this may not always be possible forsmaller businesses or for some types of risks.

•

A risk register can prove useful for tracking performance over time.

• As part of your efforts towards continuous improvement, assess all activities to control environmental impacts regularly andensure they remain effective, and adapt your control measures accordingly.

COP 24.2: Training and communication
Members shall provide training and information about environmental risks and controls to all relevant employees.
These shall be given in a format and language that workers can easily understand.

206 RJC Code of Practices GuidancePoints to consider:• It is good practice to provide environmental training and information to all your workers. Identify all those who playa part in your environmental management system and develop appropriate training for them. This applies to directly
employed workers as well as indirectly employed workers who regularly work at your sites (for example, contractors andsubcontractors). Train relevant personnel so that they are aware of potential risks, understand the controls for managing andminimising environmental impacts and appreciate their roles and responsibilities in upholding your environment policy.
• Make sure that this training:•is given to all on-site workers and, where relevant, homeworkers (for example, by incorporating it into induction ororientation training sessions); and•is delivered in a language that workers understand (if there are literacy barriers, provide one-to-one verbal training).

• Keep records of all training and use these to plan refresher training sessions.
• Get managers to regularly observe tasks involving hazardous substances and verify workers are following procedures
appropriately. If they are not, carry out additional training or revise existing procedures to mitigate identified risks.
• Communicate your commitments to, and expectations of, good environmental management to all contractors during thebidding or contracting process. Include compliance requirements within the contract and make it clear that these extend to
any subcontractors.

Check:■■Have you made a formal commitment to reduce and manage environmental impacts, either in a stand-alone policy or as
part of another company policy?

■■Is a senior manager responsible for environmental performance and compliance?
■■Have you reviewed all your business activities and identified those with the potential to cause adverse environmental
impacts?

■■Do you have an overall environmental management system appropriate to your level of risks and impacts?
■■Have you identified and implemented controls to eliminate or minimise risks and significant adverse impacts?
■■Have you identified opportunities for improvement in your environmental performance? Are they being implemented?
■■Have you trained all relevant employees, and can you show the auditor records of this?
Tips for small businessNo matter how big or small your business is, identifying and properly managing environmental risks is important. Most
jurisdictions have strict controls for managing and disposing of hazardous substances regardless of business size: tinyquantities of incorrectly disposed hazardous waste can lead to significant fines.
Even small businesses, or businesses with low risk, can benefit from good environmental management systems that ensurecompliance with applicable law and make better use of resources (water, gas and electricity).
If you are a small business, consider these simple actions to improve your environmental management systems:• Inform employees about proper waste disposal, including for chemical, hazardous and general office waste.
• Install special bins that are properly labelled for hazardous waste (hazardous waste collectors can often provide thesefor you).
• Engage water or energy providers to do an audit that can identify savings opportunities.
• Talk to peer companies and other members of industry associations to gather ideas on how to improve yourenvironmental performance at minimal cost: there is a good chance someone else has faced the same issue and has done
something simple about it.
Also see the guidance for COP 25 Hazardous substances, COP 26 Wastes and emissions and COP 27 Use of natural
resources.

RJC Code of Practices Guidance 207

E Further information
Websites:
Environment Agency (UK)www.environment-agency.gov.uk
Environment and Climate Change Canada
www.ec.gc.ca
ISO, ISO 14001:2015 Environmental Management Systems
www.iso.org/standard/60857.html
ISO, Standards Catalogue: ISO/TC 207 Environmental Management
www.iso.org/committee/54808/x/catalogue/p/1/u/0/w/0/d/0
UN Environment (formerly UN Environment Programme, UNEP)
www.unenvironment.org
UN Environment, Global Environment Outlook
www.unenvironment.org/global-environment-outlook
UN Global Compact
www.unglobalcompact.org
UN Sustainable Development Knowledge Platform
https://sustainabledevelopment.un.org
US Environmental Protection Agency (EPA), Environmental Management Systems
www.epa.gov/ems
US EPA, Small Business Gateway
www.epa.gov/smallbusiness

Publications:
IFC, Environmental, Health, and Safety Guidelines (2007)
www.ifc.org/wps/wcm/connect/topics_ext_content/ifc_external_corporate_site/sustainability-at-ifc/policies-standards/ehsguidelines
IFC, Good Practice Note: Managing Contractors’ Environmental and Social Performance (2017)https://www.ifc.org/wps/wcm/connect/topics_ext_content/ifc_external_corporate_site/sustainability-at-ifc/publications/publications_gpn_escontractormanagement
IFC, Guidance Note 3: Resource Efficiency and Pollution Prevention (2012)www.ifc.org/wps/wcm/connect/topics_ext_content/ifc_external_corporate_site/sustainability-at-ifc/policies-standards/
performance-standards/ps3
IFC, Performance Standard 3: Resource Efficiency and Pollution Prevention (2012)
ww.ifc.org/wps/wcm/connect/topics_ext_content/ifc_external_corporate_site/sustainability-at-ifc/policies-standards/
performance-standards/ps3

208 RJC Code of Practices Guidance(COP 25) Hazardous substances
A Definitions and applicability
This provision applies to all members.
Active communication means using appropriate methods and frequency for relaying information that enable the receptor toeffectively understand and act on the information.
Employees include both directly employed workers that have contracts with the RJC member and indirectly employed workers
that regularly work at members’ sites and that have employment contracts with a third party, such as a labour agent, labour
provider or contractor/subcontractor.
A hazardous substance is any material that poses a threat to human health or the environment.
A safety data sheet (SDS) is a document giving information on the properties of hazardous chemicals and how they affecthealth and safety in the workplace.
Source:• Government of Western Australia, Guidance about Hazardous Substances
www.dmp.wa.gov.au/Safety/Guidance-about-hazardous-6930.aspx

B Issue background
Substances are generally defined as hazardous if they are flammable, oxidising, corrosive, toxic, radioactive or explosive, and ifthey pose threats to public health or the environment. Hazardous substances can be solid, liquid or a vapour, and their precise
effect on people and planet depends on both their toxicity and the extent and duration of exposure. The use of hazardous
substances is governed by a broad range of international, national and local laws and is often highly regulated; some materials
are completely banned.
In the jewellery supply chain, hazardous substances can be found in:• input or raw materials, such as organic solvents, oxidising agents, metal oxides and salts, refrigerants, acids, welding fluxes
and many industrial chemicals and cleaning agents (the raw metal concentrate (doré) used by refiners, for example, can often
contain mercury or residually radioactive material);• waste streams, such as discharges to air, water or land, waste rock, empty hazardous substance packaging, tailings, waste
rock and mineral processing residues, used oils, batteries and acid sulphate soil; and• by-products of work activities, such as silica dust, fibres, welding fumes and diesel exhaust.
Safety data sheets (SDSs), sometimes called material or product safety data sheets, are a critical tool in hazardous substancesmanagement. They are essentially easy-to-understand documents containing information on the chemical make-up andpotential hazards of a substance along with instructions on how to store, handle and dispose of it safely. They come in different
formats, depending on where you are in the world, but they generally include:• the product’s name;• the chemical and generic name of certain ingredients;• the chemical and physical properties of the substance;• health hazard information;• precautions for safe use and handling;• first-aid procedures; and• the manufacturer’s or importer’s name, address and telephone number.
SDSs give employers, self-employed persons, workers and other health and safety representatives the information they needto safely manage the risk from hazardous substance exposure. It is important that everyone in the workplace has access to andcan read and interpret an SDS.
Other commonly used approaches to managing hazardous substances include labelling, training, communication and various
hazard control measures (see the hierarchy of hazard controls in Figure 23.2 COP 23 Health and safety).
More information on managing wastes is provided in the guidance for COP 26 Wastes and emissions.

RJC Code of Practices Guidance 209

C Key regulations, standards and initiatives
International standards
International standards and regulations exist for many of the hazardous substances used in the gold, diamond and coloured
gemstone jewellery supply chain. Some of the most significant are listed below.
The Rotterdam Convention (www.pic.int), signed in 1998, is a multilateral environmental agreement on the import and exportof certain hazardous chemicals. Countries make informed decisions to accept the chemicals they are prepared to receive andexclude those they decide they cannot manage safely. Every year, the list of chemicals covered by the convention is reviewed
and updated.
The Stockholm Convention (http://chm.pops.int) came into force in 2004. It is an international legally binding treaty that aims
to protect human health and the environment from the adverse effects of persistent organic pollutants (POPs) that persist in
the environment and accumulate in people and wildlife. Signatory countries are required to reduce, restrict or eliminate 29
different POPs listed in the convention’s annexes. This impacts companies because as soon as a hazardous substance is added
to the list, countries must act to ensure industry compliance.
The Montreal Protocol (https://ozone.unep.org) is an international agreement ratified by all countries in the world toprotect the earth’s ozone layer by phasing out of production a number of ozone-depleting substances (with a focus on
chlorofluorocarbons (CFCs)). Since its adoption in 1987, it has successfully eliminated more than 98 per cent of controlled
substances.1
The Minamata Convention on Mercury (www.mercuryconvention.org) is a global treaty to protect human health and theenvironment from the adverse effects of mercury. Key points of the convention, which entered into force on 16 August 2017,
include a ban on new mercury mines, the phase-out of existing ones, the phase-out of mercury use in a number of products andprocesses, control measures on emissions to air and on releases to land and water, and regulation of artisanal and small-scale
gold mining. (For members with mining facilities, control of mercury is covered under COP 41 Mercury.)
The International Labour Organization (ILO) Chemicals Convention, 1990 (ILO C170)2 has been in force since 1993 to protect
workers from the harmful effects of chemicals in the workplace. It requires employers to label all chemicals and make SDSs
available to workers, and ensure workers are not exposed to chemicals above the exposure limits defined in the SDS. To help
employers meet these requirements, the ILO published a code of practice on safety in the use of chemicals at work.3
The UN Globally Harmonized System of Classification and Labelling of Chemicals (GHS)(www.unece.org/trans/danger/publi/ghs/ghs_welcome_e.html) is a system for standardising and harmonising the classificationand labelling of chemicals and hazardous substances to support their safe use, transport and disposal. The GHS defines
the classification of chemicals by hazard (health, physical and environmental). It also provides a common language forcommunicating about chemicals and protective measures on labels and SDSs, including standard pictograms. The system is avoluntary agreement, rather than a law; nevertheless, it is already being implemented in more than 70 countries.4
The International Cyanide Management Code (www.cyanidecode.org) focuses exclusively on the safe management of cyanide
in gold and silver mining (see COP 40 Cyanide).
The World Bank Group Environmental, Health, and Safety Guidelines (EHS Guidelines, www.ifc.org/ehsguidelines) arereferred to in the World Bank’s Environmental and Social Framework and in the International Finance Corporation’s
Performance Standards and include specific guidelines on hazardous materials.

National law
Most countries have laws and regulations to govern the handling, management, use and disposal of hazardous substances,which reflect the ILO Chemicals Convention,1990. Most also have laws to implement the UN GHS, for example requiring all
hazardous substances to be accompanied by an SDS or equivalent. Many jurisdictions further require that SDSs must havebeen issued within the previous three years.
Many countries also define exposure limits for hazardous materials, which may vary across different jurisdictions.
RJC members are expected to be aware of, and comply with, all applicable laws and regulations.

1

UN Development Programme,Montreal Protocol www.undp.org/content/undp/en/home/sustainable-development/environment-and-natural-capital/montreal-protocol.html

2

ILO, C170—Chemicals Convention (1990) www.ilo.org/dyn/normlex/en/f?p=NORMLEXPUB:12100:0::NO::P12100_ILO_CODE:C170

3

ILO, Safety in the Use of Chemicals at Work (1993) www.ilo.org/safework/info/standards-and-instruments/codes/WCMS_107823/lang--en/index.htm

4

UNECE, GHS Implementation www.unece.org/trans/danger/publi/ghs/implementation_e.html

210 RJC Code of Practices GuidanceD Implementation guidance
COP 25.1: Inventory and documentation
Members shall maintain an inventory of hazardous substances at facilities. Safety data sheets (or equivalent) shallbe accessible wherever hazardous substances are used and their associated risks shall be clearly and actively
communicated to all employees who work with them.

Points to consider:• At each facility, make a manager responsible for keeping an inventory of hazardous substances. Make sure this person:•

has the authority to approve the introduction of new chemicals into the facility and to provide adequate resources to store
and respond to incidents specific to the nature of the substance; and•works closely with (or is the same as) the person responsible for your environmental management system(COP 24 Environmental management) and workplace health and safety (COP 23 Health and safety).

• The inventory itself shall:•list all hazardous substances used at the facility (even where these are rarely used or exist in small quantities);•

include basic information on the type, quantity and proper disposal of each hazardous substance (see ‘Hazardous
substances inventory: example template’ in Section D); and•identify which tasks each hazardous substance is related to.

• Establish procedures for maintaining inventory records; these should be appropriate to the amount and diversity ofhazardous substances present in your workplace. For example:•

In office and retail environments using limited hazardous substances, you may choose to record quantities as a long-term
range (for example, ‘3 to 5 bottles of 150ml of isopropyl alcohol’), rather than trying to continuously update the figures.

•

In operational workplaces using large volumes of hazardous substances, such as a refiner or manufacturer, you will needa more sophisticated system that regularly updates the quantities, locations and status of each hazardous substance. In
these types of environments, it may be appropriate to keep the inventory in an electronic database; various third-party
database systems are available for these purposes.

• For each substance listed on your inventory:•

Make sure the substance has an SDS or equivalent. For some commonly used hazardous substances bought in small
volumes, you will find the equivalent of an SDS on the label of its container.

•

Review how workers use and handle the substance to identify any risks to workers’ health or the environment. (Do thisas part of your health and safety risk assessment (COP 23.3 Health and safety) or your environmental management risk
assessment (COP24.1 Environmental management); use the RJC risk assessment toolkit or your own process.)•

Establish controls to minimise risks associated with the substance and define operating procedures to ensure it is labelled,handled, stored and disposed of correctly (in line with its SDS). These controls can be managed separately or incorporated
into a broader environmental or health and safety management system.

• Establish written policies and procedures on using chemicals. These should explicitly state the need for SDSs to accompany
all hazardous substances, and for all relevant workers to be suitably trained and equipped to handle them (see COP 23
Health and safety).
• Communicate policies and procedures for hazardous substances to anyone that is likely to handle them. This includes:•

training workers on correct procedures before they start handling a hazardous substance;•

giving instructions on what to do if there is an incident involving any of the substances on-site; and•making SDSs and operating procedures easily available, for example stored in your inventory and publicly displayed close
to where the substance is used or stored.

• Make sure you keep records of all training.

RJC Code of Practices Guidance 211

Tracking tips
Inventories are subject to constant change as substances are used, moved, replaced and disposed of. And hazardous
substances that are kept for a long time, are infrequently used or are used in very small quantities are vulnerable to being
misplaced, mislabelled and improperly handled. The points below offer some basic tips to help you avoid costly mistakes
and keep accurate track of hazardous substances over time.
• Don’t reuse original containers for a different purpose without properly cleaning and relabelling them.
• Always keep labels securely fixed and protected from damage, especially for substances in long-term storage.
• Store all vessels and containers in a way that keeps the label visible.
• Be extra careful when transferring hazardous substances to new containers to ensure they have appropriate physicalproperties and are properly labelled.
• Never dispose of empty containers and packaging as general waste. These may be contaminated with residual material
and their disposal should follow local regulations for hazardous waste.

COP 25.2: International bans
Members shall not manufacture, trade or use chemicals and hazardous substances subject to international bans. Any
hazardous substances subject to international phase-outs shall not be manufactured or traded and their use shall bephased out in accordance with the regulation.

Points to consider:• Chemicals and hazardous substances are usually banned due to their high toxicity to living organisms, environmental
persistence, potential for bioaccumulation, irreversible ecological impacts or depletion of the ozone layer.
• Complying with applicable law is often a secure way of avoiding the use of banned substances. But the list of hazardous
substances subject to international bans or phase-outs is constantly growing. To make sure you keep up with the changes:•

Review the latest international agreements regularly and confirm you are not using any hazardous substances subject tointernational phase-outs or bans (see Table 25.1 for some examples of banned substances).

•

Make sure you only procure hazardous substances through legitimate commercial suppliers.

• Note that this provision allows for non-consumptive use of hazardous substances, such as CFCs,5 that were integrated
into equipment before restrictions were introduced—if this adheres to applicable law. When products containing nonconsumptive goods such as CFCs are disposed of, this must be done safely and in accordance with the law.
Table 25.1. Some examples of internationally banned hazardous substancesType of hazardous substance

Examples• Chlorofluorocarbons (CFCs), hydrobromofluorocarbons (HBFCs) andhydrochlorofluorocarbons (HCFCs)

Ozone-depleting substances• Halons• Carbon tetrachloride (CCl4)• Methyl chloroform (CH3CCl3)• Methyl bromide (CH3Br)• Aldrin, chlordane, dieldrin, endrin, hexachlorobenzene, mirex or toxaphene• Dioxins and furans

Persistent organic pollutants• Dichlorodiphenyltrichloroethane (DDT)• Polychlorinated biphenyls (PCBs)• Polychlorinated terphenyls (PCTs)• Tributyltin (TBT)• Hexavalent chromium

Other substances• Brominated flame retardants (BFR)• Polybrominated biphenyls• Polybrominated diphenyl ether

5Compounds of carbon, hydrogen, chlorine and fluorine (typically gases used in refrigerants and aerosol propellants) that are harmful to the ozone layer. See Table 25.1.

212 RJC Code of Practices GuidanceCOP 25.3: Alternatives
Wherever technically feasible and economically viable, members shall use alternatives to hazardous substances intheir business processes.

Points to consider:• Even if you are a small- to medium-sized business, you may be surprised at the quantity and diversity of hazardous
substances in your workplace.
• Following the hierarchy of hazard controls, try to first eliminate and then make substitutions for all hazardous substances in
the workplace before resorting to control measures or protective equipment (see COP 23.3 Health and safety).
• Focus your attention first on those hazardous substances that pose the greatest risk to workers’ health or the environment,
but make sure you consider elimination or substitution for all hazardous substances listed in your inventory.
•

In some cases, this will be relatively straightforward: many hazardous substances are not commonly recognised assuch and are present in small quantities without being used for long periods—these can often be easily eliminated or
substituted with safer alternatives.

•

In other cases, it will be more difficult; it may even be impossible.

• Before using a potential alternative to a hazardous substance, always:•

check that it will not pose a greater threat to the environment or workers; and•assess its effectiveness to confirm it can be used without compromising business results.

• Never let a minor inconvenience stand in the way of using a non-hazardous alternative.

Check:■■Is a manager responsible for hazardous substances?
■■Do you have a policy and procedures for handling hazardous substances?
■■Have individuals who work with hazardous substances received the necessary training before handling the materials?
Do you keep training records?

■■Do you have an inventory of hazardous substances used?
■■Have you done a risk assessment of all hazardous substances used on-site and established controls to address actualand potential risks?

■■Are all safety data sheets accessible and in a language that those responsible for handling hazardous substances canunderstand?

■■Have you checked whether your business manufactures, trades or uses any substances subject to international bans orphase-outs?

■■Can you show the auditor that you have tried to identify suitable alternatives to hazardous substances used in yourbusiness?

Hazardous substances inventory: example template
A typical inventory will account for the type of hazardous substances on-site, how much of each type you have and how best to
dispose of any waste. A template is provided below, which may be particularly useful for small businesses, which often have arange of hazardous substances in their operations and activities, many in small quantities.
Feel free to modify or adapt this template to suit your own business context. Alternatively, develop your own inventory for
hazardous substances. Either way, make sure you review and update the inventory regularly, but especially every time there
is a major change. You can also use the inventory as the basis for assessing risks associated with the handling, use, storage anddisposal of the substances (see COP 25.1).

RJC Code of Practices Guidance 213

Facility name / location
Product
nameList nameandalternative
names ofchemicals.

Chemical
ID no (e.g.
UN no.)

Date reviewed
Supplier

Storagelocation

Maximum
storagevolumeSDS
location &
date

Waste
disposalcompanyPPE /equipment Comments Tasks
required

Identify the Provide the List special
Provide the Identify the Give theMostmaximum location
name(s) of PPE andhazardous supplier(s) location,
volumeand date of the waste equipmentroom,
substances name(s).
for safe
ever stored all SDSs.
disposalstoragehave ahandling
on-site.
company.
cabinetunique ID
Note it may of thewhere theor UN no.
even be the substance.
substance
supplier.
is stored.
Consideralso listing
where it is
used.

Identify
whichtasks eachhazardous
substance isrelated to.

E Further information
Websites:
GESTIS Substance Database [a free resource to search exposure limits by chemical]
http://gestis-en.itrust.de/nxt/gateway.dll/gestis_en/000000.xml?f=templates$fn=default.htm$vid=gestiseng:sdbeng$3.0.
The Montreal Protocol on Substances that Deplete the Ozone Layer
https://treaties.un.org/Pages/ViewDetails.aspx?src=IND&mtdsg_no=XXVII-2-a&chapter=27&clang=_en
Nevada Division of Environmental Protection, Mining
https://ndep.nv.gov/land/mining
OECD, Substitution and Alternatives Assessment Tool Selector
www.oecdsaatoolbox.org/Home/Tools
Rotterdam Convention on the Prior Informed Consent for Certain Hazardous Chemicals and Pesticides in International Tradewww.pic.int
Stockholm Convention on Persistent Organic Pollutants
www.pops.int
UN Economic Commissions for Europe (UNECE), About the GHS
www.unece.org/trans/danger/publi/ghs/ghs_welcome_e.html
UN Environment, Global Mercury Partnership
http://web.unep.org/globalmercurypartnership
UN Environment, Persistent Organic Pollutants (POPs)
www.unenvironment.org/explore-topics/chemicals-waste/what-we-do/persistent-organic-pollutants-pops
Verisk 3E, Safety Data Sheet (SDS) Searchwww.msds.com

Publications
Artisanal Gold Council, Developing Baseline Estimates of Mercury Use in Artisanal and Small-Scale Gold Mining Communities:
A Practical Guide (2015)
https://wedocs.unep.org/bitstream/handle/20.500.11822/11559/AGC_Inventory_Guide_v1_Oct2015.
pdf?sequence=1&isAllowed=y
ILO, Safety in the Use of Chemicals at Work (1993)
www.ilo.org/safework/info/standards-and-instruments/codes/WCMS_107823/lang--en/index.htm
UN Environment, Bridging the Emissions Gap: The Role of Non-State and SubnationalActors (2018)https://wedocs.unep.org/bitstream/handle/20.500.11822/26093/NonState_Emissions_Gap.pdf?isAllowed=y&sequence=1

214 RJC Code of Practices Guidance(COP 26) Wastes and emissions
A Definitions and applicability
This provision applies to all members.
Effective waste management involves a commitment to minimise waste, supported by suitable measures for handling, storing,transporting and disposing of different wastes.
Significant wastes and emissions are those that are hazardous and require special handling and disposal, have the potential toharm the environment or individuals, or require a licence or permit.
Wastes and emissions are solid, liquid or gaseous materials that are released, discarded or no longer needed. Wastes andemissions can cause pollution and adversely impact the environment if not properly managed. In the jewellery supply chain, themain forms of waste include hazardous substances, air and water emissions, and general operational waste.

B Issue background
The jewellery supply chain generates different kinds of waste and emissions (see Figure 26.1). Improperly managed, these canlead to soil, water and air pollution, threatening human, animal and environmental health. Just one litre of used oil disposed of
improperly can contaminate one million litres of water.1 And climate change fuelled by greenhouse gas (GHG) emissions poses
one of the most serious challenges to human and ecosystem survival in the world today.

Air and water
emissions
Common air emissions
include dust andparticulate matter,greenhouse gases,
ozone-depleting
substances and volatileorganic compounds.

General waste

Hazardous waste

Wood, paper, plastics, food,plant-based items, metal,ofﬁce consumables, outdatedsite or ofﬁce equipment, andcommercial or shop discards.

Waste rock, tailings
and other residues.

Water emissions happen
through discharges ofwaste water and process
chemicals, surface
runoff, groundwaterleaching, and liquid spills.

Leftover process
chemicals and cleaning
agents.
Used oils, batteries
and empty hazardous
substance packaging.
(See COP 25
Hazardous
Substances.)

Air and water emissions
can deposit on land or
water.
Figure 26.1. Common types of waste and emissions from jewellery supply chain
In the face of these threats and adverse impacts, companies have a duty to manage their waste effectively and reduce theiremissions. This applies both to waste and emissions directly generated by, for example, processing raw materials or replacing
old equipment, as well as waste and emissions from indirect sources such as infrastructure development, administration andtransport.

1

Creamer Media’s Mining Weekly, Mines Urged to Do ‘all they can’ to Limit Pollution from Used Oil (2018)www.miningweekly.com/article/used-oil-storage-disposal-requirements-to-mitigate-water-contamination-rose-foundation-2018-09-28/rep_id:3650

RJC Code of Practices Guidance 215

Companies also have a legal duty to manage waste effectively, as established in numerous national and international rules
and regulations (see Section C). Air and water emissions are attracting increasingly strict regulatory limits and reporting
requirements. And a growing public environmental conscience is increasing public pressure on companies to seek clean, ecoefficient and life-cycle approaches to design and production that minimise use of natural resources and reduce environmental
impact.

The 4 Rs of waste management
There are many different ways to minimise and manage waste effectively, depending on the type of waste at hand, where it has
been generated and the waste facilities available. But in all cases, the same basic hierarchy of principles, commonly called the ‘4
Rs of waste management’, apply (see Figure 26.2).

Reducethe amount ofwaste produced
wherever possible.

Reuse

waste
materials ifpractical.

Recyclematerials thatcannot be
reduced orreused.

Recovermaterials
or energy.

Disposeof any residual
waste safely, as
a last resort.

Figure 26.2. The 4Rs of waste management
All along the supply chain general waste can comprise diverse materials, including wood, paper, plastics, food, plant-based
items, metal, office consumables, outdated site or office equipment, and commercial or shop discards. The first step tomanaging these waste streams effectively lies in separating them. Opportunities to then reduce, reuse, recycle and recover
resources can then be sought. These will vary across individual businesses and countries, but experience suggests that in theface of rising costs for collecting, transporting, storing, treating and disposing of different wastes, practising the 4 Rs makes
good financial sense (see box ‘Cost savings from reducing waste’).

Cost savings from reducing waste
The International Institute for Sustainable Development (IISD) suggests that by reducing waste, reusing products,
recycling, and making environmentally conscious purchases, businesses can cut costs and increase profits. Savings takethe form of:• lower waste treatment and disposal costs;• lower energy costs;• savings on materials and supplies;• reduced regulatory compliance costs;• lower storage costs; and• cost recovery through the sale of recyclable materials.
Source:• IISD, The 4 Rs: Reduction, reuse, recycling and recovery www.iisd.org/business/tools/bt_4r.aspx

216 RJC Code of Practices GuidanceTackling greenhouse gas emissions
Small or large, all businesses in one way or another are responsible for producing the GHG emissions that fuel climate change.
The international emissions accounting initiative GHG Protocol (http://ghgprotocol.org) classifies these emissions into threegroups, or ‘scopes’:
1. Direct GHG emissions from sources that the company owns or controls, for example emissions from boilers, furnaces,
vehicles or from chemical production.
2. Indirect GHG emissions from electricity bought and consumed by the company. These emissions physically occur at thefacility where the electricity is generated (rather than at the company’s facilities).
3. Other indirect GHG emissions from sources beyond the company’s ownership or control, for example emissions related tothe extraction, production or transport of bought materials.
Under COP 27 Use of natural resources, RJC members are required to try and reduce their emissions by reducing their energy
consumption, improving their energy efficiency and using more renewable sources of energy wherever they can.
Some companies are also adopting other initiatives—including carbon offsetting and emissions trading—to further limit theircarbon footprints. Carbon offsetting involves companies investing in environmental projects—such as tree planting, renewableenergy, energy conservation and methane capture—to balance out their own carbon footprints (see box ‘Calculating my carbon
footprint’). Many companies have made commitments to become ‘carbon neutral’, whereby their entire net release of carbon is
offset.
Carbon or emissions trading, also called ‘cap and trade’ schemes, involves the buying and selling of a limited number of ‘carbon
credits’ that allow the credit holder to emit a specific amount of carbon over a specific amount of time. This means thatcompanies that need to discharge more emissions have the flexibility to do so, but at the cost of having to hold more credits.
Emissions trading programmes may be suitable for companies if their emissions:• occur over a relatively large geographic area with a significant number of sources; and• can be consistently and accurately measured.

C Key regulations, standards and initiatives
International agreements
Two major international conventions govern hazardous waste management:• The Basel Convention (www.basel.int) on the Control of Transboundary Movements of Hazardous Wastes and Their
Disposal was signed in 1989 and is the most comprehensive global environmental agreement on hazardous andother wastes. Aimed at protecting human health and the environment, the convention requires countries to practise
environmentally sound waste management and limits the import and export of hazardous waste.
• The Bamako Convention (www.informea.org/en/treaties/bamako-convention) is a treaty of African nations banning theimport into Africa of any hazardous wastes. In force since 1998, the Bamako Convention is much stronger than the Basel
Convention in prohibiting all imports of hazardous waste and making no exceptions, including for radioactive materials.
The Rotterdam Convention (www.pic.int), signed in 1998, is a multilateral environmental agreement on the import and exportof certain hazardous chemicals. Countries make informed decisions to accept the chemicals they are prepared to receive andexclude those they decide they cannot manage safely. Every year, the list of chemicals covered by the convention is reviewed
and updated.
The UN Framework Convention on Climate Change (UNFCCC, https://unfccc.int) and Paris Agreement(https://unfccc.int/process-and-meetings/the-paris-agreement/the-paris-agreement) are two notable global agreements
on climate change, both of which include requirements to limit and report on GHG emissions (see COP 27 Use of natural
resources for more information).

RJC Code of Practices Guidance 217

International standards
The most widely recognised standard on environmental management is the ISO14000 family of standards(www.iso.org/iso-14001-environmental-management.html), developed by the International Organization for Standardization(ISO). ISO 14001:2015 Environmental Management Systems,2 for example, provides a framework for organisations tominimise negative environmental impacts, meet legal obligations and adopt a continuous improvement approach. It is also oneof the standards the RJC recognises for compliance with specific environment-related COPs (see Assessment Manual).
Other particularly relevant ISO standards include:• The ISO 14060 series on GHG management and related activities (www.iso.org/committee/546318/x/catalogue). This set ofeight standards covers topics such as quantifying and reporting GHG emissions at organisation and project level, validating
and verifying GHG assertions, validation requirements for external accreditation, calculating carbon footprints and methods
for climate actions.
• The ISO 14040 series on life-cycle assessment (www.iso.org/committee/54854/x/catalogue). Together, these 11 standards
set out the framework for applying a life-cycle approach, including how to carry out eco-efficiency assessments, calculate
water footprints and document data.
Companies can use these as a framework for developing their own systems to manage their environmental responsibilities andseek certification where appropriate.
The International Finance Corporation (IFC) Environmental and Social Performance Standards (‘IFC Performance Standards’,
www.ifc.org/performancestandards) define IFC clients’ responsibilities for managing environmental and social risks. A global
benchmark on good practice, these comprise eight standards, including:• Performance Standard 3: Resource Efficiency and Pollution Prevention, which sets out detailed requirements for managing
waste and hazardous materials. The standard comes with relevant guidance, including on how to avoid generatinghazardous and non-hazardous waste; reduce, recover, reuse and recycle materials where possible; and dispose of waste
in an environmentally sound way and in accordance with local laws (including adhering to restrictions on transboundary
movements).

International initiatives
The Zero Waste International Alliance (http://zwia.org) works at international, national and local levels to promote positive
alternatives to landfill and incineration, and to raise community awareness of the social and economic benefits of regarding
waste as a ‘resource base’.
A number of tools and initiatives exist to support GHG monitoring and reporting. The Greenhouse Gas Protocol(http://ghgprotocol.org/), for example, is a global standardised framework to measure and manage GHG emissions for acompany’s own operations or its supply chain. The protocol is the product of a 20-year partnership between the World
Resources Institute (WRI) and the World Business Council for Sustainable Development (WBCSD). This protocol is very widelyused and can provide the basis for feeding into reporting schemes like the Global Reporting Initiative (GRI), which includes
requirements to report on a number of emissions-related metrics.
Various other carbon and water emissions initiatives focus on disclosure and are also important, for example the Carbon
Disclosure Project (CDP), the Task Force on Climate-related Financial Disclosures and the CEO Water Mandate (see COP
27 Use of natural resources for details).

National law
National regulation on waste and emissions is often complex, with varying responsibilities at national, state and local levels.
Most countries have detailed environmental legislation and regulatory processes, usually overseen by specific government
departments or statutory authorities. The issue of waste management is prominent and there are usually limits on the natureof disposal of many materials, according to impact, material type and quantity. In some jurisdictions, there are incentives
for reducing waste voluntarily. Companies must be aware of all relevant legislation, regulations and key bodies in theirjurisdictions of operation.
Mandatory GHG reporting is required in more than 40 countries around the world and across multiple stock exchanges for
publicly listed companies. Reporting qualifications vary across jurisdictions. For example, the United Kingdom only requires
incorporated companies listed on the main markets of the London Stock Exchange, European Economic Area, New York Stock
Exchange or NASDAQ to report. The scope of reporting also varies by country: most countries require reporting for emissions
scopes 1 and 2; emissions scope 3 is usually optional. Many countries use the WRI/WBCSD Greenhouse Gas Protocol as thebasis for reporting requirements, but there can be local variations.

2ISO, ISO 14001:2015 Environmental Management Systems—Requirements with Guidance for Use (2015) www.iso.org/standard/60857.html

218 RJC Code of Practices GuidancePenalties for non-compliance with applicable law vary from country to country, but they can include significant fines and may
extend to criminal liability. Violating, or infringing on, waste disposal or emissions rules can jeopardise operating licences andother permits. Significant impacts may require remediation to be undertaken at the company’s cost.

National initiatives
The Mining Association of Canada (MAC) has a protocol for energy use and GHG emissions (http://mining.ca/towardssustainable-mining/protocols-frameworks/energy-and-ghg-emissions-management) to help mining companies reduce theiroperational costs and limit their impacts on the environment. The protocol defines several management system requirements,
including assigned accountability from senior management, energy awareness training, internal and external reporting andprocesses to ensure energy data is reviewed regularly and well integrated with operations.

D Implementation guidance
COP 26.1: Identify wastes and emissions
Members shall identify significant wastes and emissions to air, water and land generated in their business processes inaccordance with COP 24 (Environmental management).

Points to consider:• Review all business processes and activities, listing the inputs and outputs of each one and identifying any waste streams toair, waterways, sewers, land or other off-site disposal routes.
• Wherever possible, collect information on the characteristics of the waste stream (see box ‘Characterising waste’).

Characterising waste
Waste products may be liquid, solid or gaseous. Determining how best to manage them, including assessing their potential
impact on people and environments, requires an understanding of the waste product’s characteristics and life-cycle
impacts, including its:• sources;			

• transfer of wastes;• composition;			

• storage;• toxicity;			

• treatment;• separation;			

• destination/pathways; and• quantities;			

• disposal.

• flow/production rates;		
• For each emission and waste stream identified, determine whether it is ‘significant’ or not:•Consider composition, toxicity and regulatory requirements to identify significant wastes and emissions that require
special handling or disposal, or that require a licence or permit (see definition of ‘significant’ in Section A).

•

Carry out a risk assessment to determine whether an emission or waste stream is significant based on its potential
environmental and human rights impacts. This needs to take into account the receiving environment. This can be a standalone risk assessment or part of a broader one, for example on environmental management (COP 24 Environmental
management).

• Note that your risk assessment should be appropriate to your business’s circumstances and should identify where issues
may arise, the likelihood of occurrence and potentially deficient procedures.
•

Remember to consider the sensitivity of receiving environments in assessing potential for environmental impacts as wellas any potential transboundary effects (for example, of emissions to air or water).

RJC Code of Practices Guidance 219

COP 26.2: Manage wastes and emissions
Members shall responsibly manage the identified wastes and emissions. In particular, they shall:a. Quantify wastes and emissions to manage and monitor trends over time and drive continuous improvement inenvironmental performance.
b. Apply the principles of reduce, reuse, recycle and recover to minimise environmental impact where applicable, including
reducing greenhouse gas emissions and increasing energy efficiency in alignment with COP 27 (Use of natural resources).
c. Discharge or dispose of wastes and emissions in compliance with applicable law or, where applicable law does not exist, inline with prevailing international standards.

Points to consider:• Establish written policies and procedures for monitoring and controlling all identified significant wastes and emissions.
Make sure these:•include clearly defined roles and responsibilities;•

are integrated into the facility’s environmental management system; and•comply with all applicable regulatory limits and reporting requirements, including those on carbon emission limits andtrading or offsetting programmes. If there is weak or no regulation, make sure you comply with prevailing international
standards, as listed in Section C.

• In designing your approach, follow the 4Rs of waste management as outlined in Section B, and the mitigation hierarchy
described under COP 24 Environmental management:•

Avoid or anticipate risks by changing your operations to no longer produce the waste or emission.

•

Minimise or mitigate unavoidable wastes and emissions through controls or treatments that reduce their levels or makethem less hazardous or lower impact.

•

Restore or rehabilitate impacted environments or communities by cleaning up or providing remedy.

•

Offset or compensate residual impacts as a last resort.

Reducing plastic waste
According to UN Environment, the world produces nearly 300 million tonnes of plastic waste every year. About 80 per
cent of that accumulates in landfills, dumps or the natural environment. The world’s rivers act as direct conduits for plastic
waste and eight million tonnes of it end up in the world’s oceans every year. Because plastics are durable and resistant todegradation, they are nearly impossible for nature to completely break down and never fully disappear.
Practical tips for reducing plastic waste in offices, factories, warehouses and retail outlets include:• Seek to remove all single-use plastics. Avoid plastic bags, straws, cups and plates. Seek to avoid single-use plastic
packaging in your products.
• Invest in innovation and design of products for reuse.
• Develop or use fully reusable, recyclable or compostable packaging.
• Ensure effective plastics waste management, recycling as much as possible.
• Remove microbeads from products.
• Encourage and incentivise workers and suppliers and raise awareness.
Sources:• UN Environment, Our Planet Is Drowning in Plastic Pollution
www.unenvironment.org/interactive/beat-plastic-pollution• The Ocean is Everybody’s Business, Significantly Reduce Plastic Waste (2019)www.theoceaniseverybodysbusiness.org/take-action/significantly-reduce-plastic-waste• The mitigation hierarchy particularly applies to carbon emissions and should be embedded in policies and procedures tominimise these.
• Use a life-cycle approach to make sure you consider the full range of potential impacts of waste management and emissions(see COP 24 Environmental management). For example, while replacing machinery with more efficient models may reduce
GHG emissions, it will also create another waste stream as the old machinery is disposed of.
• Wherever possible, quantify your wastes and emissions. This includes determining your carbon emissions (see box‘Calculating my carbon footprint’) and calculating volumes of other waste streams.

220 RJC Code of Practices GuidanceCalculating my carbon footprint
Many companies choose to be carbon neutral. But you can’t manage or neutralise your carbon emissions if you don’t know
how much you are emitting.
ISO 14067:2018 Carbon Footprint Quantification3 and ISO 14026:2017 Footprint Communication4 are both usefulframeworks for calculating your carbon footprint. Note that offsetting must not be included in the calculation of a carbon
footprint according to ISO 14067. There are lots of different tools available designed for companies, including:• Carbon Trust calculator for SMEs: www.carbontrust.com/resources/tools/carbon-footprint-calculator• Carbon Trust footprinting software for large companies:
www.carbontrust.com/client-services/advice/footprinting/carbon-footprint-software• Carbon Footprint calculator: https://calculator.carbonfootprint.com/calculator.aspx
These require different levels of information to work: the more information you have, the more accurate your calculation
will be, which will save you buying more credits than you need.
If you want to become carbon neutral, you can hire consultants to help. These experts will usually review your processes
and mitigation activities to make sure you are minimising your footprint before offsetting, and they will also buy the
carbon credits to certify you as a carbon neutral company. Examples of companies that provide these services include:• Carbon Expert, which works with the gem and jewellery industry through a partnership with the World Jewellery
Confederation, CIBJO (http://carbon-expert.com); and• Carbon Trust, which works with large companies and brands (www.carbontrust.com/home).
You can also choose to buy your own carbon credits, for example through Gold Standard (www.goldstandard.org) or
Carbon Footprint (www.carbonfootprint.com/carbonoffset.html). Your claims about carbon neutrality can then be
certified against the PAS 2060 Carbon Neutrality standard by the British Standards Institution(www.bsigroup.com/en-HK/PAS-2060-Carbon-Neutrality).
,

3 4• Consider commissioning qualified experts to carry out a bespoke assessment to identify and characterise your wastes
and emissions, calculate costs and liabilities, develop performance metrics and targets, and identify your best options for
improving waste management. Such options may include:•

technical measures, such as pollution-control equipment or bunding;•operational controls, including better-defined procedures or limited hours of operations;•production controls, such as restricting and controlling the types of materials used;•management controls, including supervision and clearly defined responsibilities; and•training.

• Consider opportunities to generate employee awareness of responsible management of wastes and to encourage employees
to raise waste management concerns with management.
• Incorporate your expectations for responsible waste management into your contractor selection criteria and documents,
and carry out appropriate reviews before hiring any contractors. Make sure you:•review the licences held by the waste transporter and disposal site to ensure they match the nature of the waste materials;
and•carry out periodic audits.

• Establish a systematic approach for monitoring your waste and emissions to drive continuous improvement over time. Suchan approach should be embedded into your environmental management system, and could include efforts to regularly:•

collect quantitative or qualitative measurements (using calibrated equipment and established methods) to analyse trends
in performance and support management decisions;•evaluate compliance with regulatory requirements;•

manage the effectiveness of established risk controls; and•identify emerging issues regarding waste and emissions.

3

3ISO,ISO 14067:2018 Greenhouse Gases—Carbon Footprint of Products—Requirements and Guidelines for Quantification (2018) www.iso.org/standard/71206.html

4

4ISO,ISO 14026:2017 Environmental Labels and Declarations—Principles, Requirements and Guidelines for Communication of Footprint Information (2017)www.iso.org/standard/67401.html

RJC Code of Practices Guidance 221

Tips for small businessIf you are a small business, consider taking one or more of these simple actions to reduce your waste and emissions:• Identify wastes that can be recycled or reused at low or no cost (for example, metals, glass and paper) and install easily
accessible, and clearly labelled, bins to put them in. This can reduce disposal costs.
• Install special bins that are properly labelled for hazardous waste (hazardous waste collectors can often provide thesefor you). This avoids mixing hazardous and non-hazardous wastes and can reduce the volume of waste and handling anddisposal costs.
• If recycling services are not available because you only produce small volumes of waste, consider working with othersmall businesses to aggregate waste.
• Engage workers to gather ideas and discuss opportunities for reducing waste and emissions.
• Talk to peers and other members of industry associations to gather ideas on how to reduce waste and emissions at
minimal cost: there is a good chance someone else has faced the same issue and has already found a simple solution.

Check:■■Is someone responsible for overseeing your facility’s waste and emissions?
■■Have you identified significant wastes and emissions streams from all your operations? Can you show the auditor how
you did this?

■■Have you done a risk assessment to identify all significant wastes and emissions? And have you established controls forthese?

■■Are you aware of applicable law and do you comply with all regulatory limits?
■■Have you quantified your wastes and emissions?
■■Have you identified opportunities to reduce wastes and emissions?
■■Can you show what measures you have taken to reduce, reuse, recycle or recover wastes or emissions?
■■Do you have a policy and procedures for managing significant wastes and emissions, including regular monitoring?
■■Are you monitoring and analysing key characteristics of your waste and emissions to identify trends? Are you using thisinformation to help drive improvements?

■■Can you show reductions in greenhouse gases and decreased energy consumption?

E Further information
Websites:Basel Convention on the Control of Transboundary Movements of Hazardous Wastes and their Disposal
www.basel.int
The Carbon Disclosure Project (CDP)
www.cdp.net
Carbon Offset Research and Education (CORE)
www.co2offsetresearch.org
The CEO Water Mandate, Corporate Water Disclosure Guidelines
https://ceowatermandate.org/disclosure
The CEO Water Mandate, Integrity in Water Stewardship Initiatives
https://ceowatermandate.org/integrity
Environment Protection Authority Victoria, Waste Assessment
www.epa.vic.gov.au/bus/resource_efficiency/waste_assessment.asp
Global Reporting Initiative (GRI)
www.globalreporting.org
Greenhouse Gas Protocol
https://ghgprotocol.org
ISO, ISO 14000 Family—Environmental Management
www.iso.org/iso-14001-environmental-management.html

222 RJC Code of Practices GuidanceISO, Standards Catalogue: Greenhouse Gas Management and Related Activities [ISO 14060 series]
www.iso.org/committee/546318/x/catalogue/p/1/u/0/w/0/d/0
Mining Association of Canada (MAC), Energy and GHG Emissions Management
http://mining.ca/towards-sustainable-mining/protocols-frameworks/energy-and-ghg-emissions-management
US Environment Protection Agency, Simplified Greenhouse Gas Emissions Calculator
www.epa.gov/climateleadership/center-corporate-climate-leadership-simplified-ghg-emissions-calculator
Water Research Center, Monitoring the Quality of Surface Waters (WQI Calculator)
www.water-research.net/index.php/water-treatment/water-monitoring/monitoring-the-quality-of-surfacewaters
Zero Waste International Alliancewww.zwia.org

Publications:
African Union, Bamako Convention on the Ban on the Import into Africa and the Control of Transboundary Movement andManagement of Hazardous Wastes within Africa (1991)
https://au.int/en/treaties/bamako-convention-ban-import-africa-and-control-transboundary-movement-and-management
The CEO Water Mandate, Guidance for Companies on Respecting the Human Rights to Water & Sanitation (2015)
https://ceowatermandate.org/resources/guidance-for-companies-on-respecting-the-human-rights-to-water-sanitation-2015/
The CEO Water Mandate, Risk Assessment 101: Understanding Your Unique Water Stewardship Challenges (2018)https://ceowatermandate.org/academy/risk-assessment-101-understanding-your-unique-challenges
The Chartered Institute of Purchasing & Supply (CIPS), How to Develop a Waste Management and Disposal Strategy (2007)www.cips.org/Documents/About%20CIPS/Develop%20Waste%20v3%20-%2020.11.07.pdf
International Council on Mining and Minerals, A Practical Guide to Catchment-Based Water Management (2015)
www.icmm.com/guide-to-catchment-based-water-management
IFC, Performance Standard 3: Resource Efficiency and Pollution Prevention (2012)www1.ifc.org/wps/wcm/connect/25356f8049a78eeeb804faa8c6a8312a/PS3_English_2012.pdf?MOD=AJPERES
ISO, 14026:2017Environmental Labels and Declarations—Principles, Requirements and Guidelines for Communication ofFootprint Information (2017)www.iso.org/standard/67401.html
ISO, 14046:2014 Environmental Management—Water Footprint—Principles, Requirements and Guidelines (2014)www.iso.org/standard/43263.html
MAC, Towards Sustainable Mining Energy and Greenhouse Gas Emissions Management Reference Guide (2014)
http://mining.ca/sites/default/files/documents/EnergyandGreenhouseGasEmissionsManagementReferenceGuide2014.pdf

RJC Code of Practices Guidance 223

(COP 27) Use of natural resources
A Definitions and applicability
This provision applies to all RJC members.
Natural resources are materials or substances that are found in nature and used in human activities. They include coal, mineraloil, natural gas, water and forest products that are used in human activities.
Renewable energy is any form of energy from solar, geophysical or biological sources that is replenished by natural processes
at a rate that equals or exceeds its rate of use. Renewable energy includes low-carbon technologies such as solar energy,hydropower, wind, tide and waves, and ocean thermal energy, as well as renewable fuels such as biomass.
Source:• Intergovernmental Panel on Climate Change (IPCC), Renewable Energy Sources and Climate Change Mitigation (2012)www.ipcc.ch/report/renewable-energy-sources-and-climate-change-mitigation

B Issue background
Using natural resources more efficiently is one of the most effective ways to reduce business costs. This includes a diverse
range of measures to save energy, water or other resources that can be implemented in buildings and facilities, production
processes and end-use products. Insulating buildings, turning off lights and equipment, installing water-saving measures andoptimising processes all lead to a more efficient use of natural resources.
Efficiency measures will be part of an overarching environmental management plan (see COP 24 Environmental management)
and will most commonly include energy- and water-saving measures. It is, however, important to remember that there areother land, air and water resources that businesses can target to improve efficiency and reduce environmental impact,
including forest products (paper, cardboard and wood) and plastics (for example, in packaging) or land use in mining withresulting impacts on biodiversity (see COP 38 Biodiversity).
The inefficient use of natural resources not only causes adverse environmental impacts but can also adversely impact humanrights. For example, if a company’s actions end up reducing availability of water, it can directly impact local communities’ rightto food and clean water. The UN Special Rapporteur on human rights and the environment claims that a safe, clean, healthy andsustainable environment underpins a wide range of human rights, including the rights to life, health, food, water and sanitation.
As awareness of the links between human rights and environment grows, so too do the calls for a global recognition of the rightto a safe and healthy environment.
Energy-saving measures are important to reduce the greenhouse gas (GHG) emissions associated with inefficient use offossil fuels, which is a major driver of climate change. Climate change is one of the most pressing challenges facing the world
today and is the focus of UN Sustainable Development Goal (SDG) 13.1 Reducing climate change drivers is a concern for allcompanies, not just big business (see COP 26 Wastes and emissions for more detail on carbon emissions). Direct efforts to
reduce energy consumption and emissions can be complemented by indirect methods such as:• carbon or emissions trading schemes, which involve companies buying and selling carbon permits as part of a wider state-run
programme to reduce emissions; and• carbon offset schemes, which involve companies investing in environmental projects—such as tree planting, renewableenergy, energy conservation and methane capture—to balance out their own carbon footprints.
Water is also a fundamental resource for people and ecosystems, and the right to water and sanitation is recognised as ahuman right under the 2010 UN Resolution 64/292. As summarised under SDG 62 on clean water and sanitation, ‘water
scarcity, poor water quality and inadequate sanitation negatively impact food security, livelihood choices and educational
opportunities for poor families across the world. At the current time, more than 2 billion people are living with the risk of
reduced access to freshwater resources.’ Companies therefore need to ensure that their use of water does not directly or
indirectly impact the rights of people in the communities within which they operate, and this should be included as part ofhuman rights due diligence as required in COP 6.1b Human rights.

1

UN, Sustainable Development Goals, Goal 13: Take Urgent Action to Combat Climate Change and Its Impacts www.un.org/sustainabledevelopment/climate-change-2

2

UN, Sustainable Development Goals, Goal 6: Ensure Access to Water and Sanitation for All www.un.org/sustainabledevelopment/water-and-sanitation

224 RJC Code of Practices GuidanceIn addition to direct impacts on water, companies can have environmental impacts on ecosystems and species as well as socialand cultural impacts related to water. These impacts can be far-reaching in situations where there is an insufficient governanceframework on water and where the company is an important water user relative to the local water catchments, as can be thecase for mining activities.
Water stewardship is an important responsible business practice in this context. It is defined as ‘the use of fresh water that issocially equitable, environmentally sustainable and economically beneficial, achieved through a stakeholder-inclusive processthat involves site- and catchment-based actions’.3
Regardless of company size, most measures to reduce energy consumption, water and other natural resource use will savemoney in the long term, increasing a company’s profitability. Reducing energy consumption should be seen as an opportunity toboth reduce environmental impact while providing a strong business advantage.

C Key regulations, standards and initiatives
International initiatives
Global efforts to address climate change and water use are increasingly designed to encourage and mandate environmental
management and disclosure in business. Some of the most notable international standards are described in turn below. This
field is evolving quickly and companies should actively monitor emerging standards, legislation and guidance to ensure theyknow what is expected of them.
Established in 1994, the UN Framework Convention on Climate Change (UNFCCC, https://unfccc.int) has been ratified by
192 countries, achieving near universal membership. It was created as a mechanism to explore how to mitigate climate change
and how to cope with any inevitable impacts. The Kyoto Protocol is a legally binding addition to the convention that commits
signatories to reducing GHG emissions.
The UNFCCC Paris Agreement (https://unfccc.int/process-and-meetings/the-paris-agreement/the-paris-agreement) wasestablished in 2015 tobuild on the UNFCCC and bring countries together to combat climate change and adapt to its effects.
In particular, the agreement intends to strengthen the global response to climate change by keeping any increase in global
temperatures to less than 2 degrees Celsius above pre-industrial levels (and trying to keep it under 1.5 degrees Celsius). The
agreement also aims to strengthen countries’ ability to deal with the impacts of climate change, with a specific emphasis on
giving low- and middle-income countries extra help. To ensure countries can fulfil the Paris Agreement’s ambitious goals, theglobal community will need to develop appropriate financial flows, a new technology framework and enhanced transparency
and capacity-building frameworks.
The International Finance Corporation (IFC) Environmental and Social Performance Standards (‘IFC Performance Standards’,
www.ifc.org/performancestandards) define IFC clients’ responsibilities for managing environmental and social risks. A global
benchmark on good practice, these comprise eight standards, including:• Performance Standard 3: Resource Efficiency and Pollution Prevention, which provides detailed requirements andassociated guidance for major development projects (like mining) to promote more sustainable use of resources including
energy and water, and reduce project-related GHG emissions.
Specifically, Performance Standard 3 requires companies to integrate practices and technologies that promote energy
efficiency, use resources like energy and water sustainably and reduce GHG emissions. Cost-effectiveness is determinedaccording to the capital and operational cost and financial benefits of the measure considered over its lifetime. A measure isconsidered cost-effective if it is expected to provide a risk-rated return on investment at least comparable to the project itself.
In 1998, the UN Economic Commission for Europe adopted the Convention on Access to Information, Public Participationin Decision-Making and Access to Justice in Environmental Matters, also known as the Aarhus Convention(www.unece.org/env/pp/treatytext.html). It establishes several rights of the public with regard to the environment, including:
1. The right for everyone to receive access to environmental information held by public authorities.
2. The right for stakeholders, including non-governmental organisations and the public, to comment on proposals for projects,
plans and programmes that relate to, or impact, the environment (and for decision-makers to take these comments into
account).
3. The right for anyone to challenge public decisions through judicial or administrative recourse procedures if those decisions
have been made without respecting environmental law or rights 1 and 2.

3

Alliance for Water Stewardship, Glossary of Terms(2015) https://a4ws.org/download/glossary-of-terms

RJC Code of Practices Guidance 225

The rights established in the convention are particularly relevant to water use by mining companies and other users of natural
resources with potentially significant local impacts.
The International Council on Mining and Metals (ICMM) defines good practices in water stewardship through its position
statement (www.icmm.com/water-ps), which its members must implement. Through this statement, mining companies must
apply strong and transparent water governance, manage water at operations effectively and collaborate to achieve responsible
and sustainable water use. ICMM provides further guidance on implementing its position statement through:• the Water Stewardship Framework (www.icmm.com/water-stewardship-framework), which offers practical guidance on
how to adopt a catchment-based approach to water management; and• A Practical Guide to Consistent Water Reporting (www.icmm.com/water-disclosure-standard), which offers guidance and aminimum disclosure standard to support the industry in making consistent, transparent and material water reports.
Led by CEOs, The CEO Water Mandate (https://ceowatermandate.org) shares best and emerging practices and enables multistakeholder partnerships to address challenges related to water scarcity, water quality, water governance, and access to waterand sanitation. The initiative facilitates meaningful collective action to improve conditions in at-risk river basins around theworld.
In 2015, the Mining Association of Canada (MAC) adopted a Towards Sustainable Mining (TSM) Water Stewardship Policy
Framework (http://mining.ca/towards-sustainable-mining/protocols-frameworks/water-stewardship) to detail its members’commitments to water stewardship that go beyond legal compliance. And in 2018, MAC released a Water Stewardship
Protocol as a tool for companies to measure implementation of the framework’s commitments. The protocol comprises four
performance indicators: water governance, operational water management, watershed-scale planning, and water reportingand performance.

Investor focus on environmental disclosure
The investor community is beginning to make financial decisions that include considerations of all material factors suchas climate- and water-related risks and opportunities. Some are starting to ask for extra disclosure and reporting toencourage companies to set and achieve sustainability targets that decrease their consumption of natural resources andpromote more environmentally sustainable business practices.
The Task Force on Climate-related Financial Disclosures (TCFD, www.fsb-tcfd.org) was established by the Financial
Stability Board in 2015 to help identify what information investors, lenders and insurance underwriters need toappropriately assess and price climate-related risks and opportunities. Since then, the task force has developed a setof voluntary climate-related financial disclosures that companies can use to inform investors, lenders and insurance
underwriters. Their recommendations are now informing the potential development of mandatory disclosure laws.
Companies are encouraged to review these and understand the expectations.
CDP (formerly the Carbon Disclosure Project, www.cdp.net) runs a system for self-reported environmental data forcompanies (specifically on climate change, water security and forests) and transforms the data into detailed analysis forinvestors. Through its questionnaires, CDP requests information on climate and water risks and opportunities from theworld’s largest companies, and also scores them. CDP has integrated the TCFD recommendations into its 2018 sectorspecific climate change questionnaires. Companies, particularly larger publicly listed companies, are encouraged to review
these and understand the financial community’s growing expectations on disclosure.

National law
National and regional governments often set regulations, guidelines and industry targets for water and energy efficiency.
Under the UNFCCC, governments are required to launch national strategies for reducing GHG emissions. This can include
setting national targets for emissions reductions, as well as developing specific legislation on use of resources.
Some countries also mandate companies to disclose certain information about how they operate and manage social andenvironmental challenges. For example, the European Union Directive 2014/95/EU,4 which amends the accounting directive
2013/34/EU, requires companies to include non-financial statements in their annual reports from 2018 onwards.
As this is a rapidly changing area, it is important to keep abreast of legal requirements and business incentives relating toenergy and resource use and disclosure.

4

European Union, Directive 2014/95/EU (2014) https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A32014L0095

226 RJC Code of Practices GuidanceD Implementation guidance
COP 27.1 AND 27.2: Energy and water and other resources
27.1. In alignment with the approach required for COP 22 (Environmental management), members shall monitor energy andwater use in their business and establish energy and water efficiency initiatives.
27.2. Members shall identify other significant natural resources used in their business and seek to ensure their efficient use.

Points to consider:• One of the strongest arguments for adopting energy-efficiency measures is that in most cases you can easily forecast,measure and calculate the benefits to your business. You can similarly make significant cost savings from using and treatingwater more efficiently.
• Follow the four steps below to help you calculate and improve your energy and water use, and also the use of other natural
resources, such as forest products and plastics.
• Identify what other significant natural resources you use as part of your environmental risk assessment under COP 24.1
Environmental management. As part of that, you can:•list the natural resources used in your business and identify their sources; for example, find out how much wood or plastic
you use and where it comes from; and•identify significant resource uses, including resources that are naturally scarce or that you use in high volumes, as well as
uses that carry a high risk of adverse environmental impact.

Step 1. Identify• Review your operations to identify your energy, water and other natural resource use by source, quality and quantity.
• If possible, monitor your consumption (through metering for example) to identify the opportunities for efficiency initiatives
in the business. If you have a large workplace, or use processes that require large amounts of water and energy:•

Assign responsibility for your energy and water management system to a manager.

•

Consider setting targets for efficiency improvements.

•

Use technical analyses appropriate to the nature of your business to identify potential efficiency improvements.

•

Consider using audit services by qualified experts to get detailed, written assessments of your water and energy use to
identify opportunities for efficiency improvements.

•

Make use of information and advisory services from local utility providers and public agencies, where available andappropriate.

• If monitoring is not practical (for example, because you have a small workplace in an office building that is not separately
metered), you may still be able to find ways to increase your water and energy efficiency (see Figure 27.1).

Step 2. Prioritise• Once you have identified the opportunities for reducing consumption or increasing efficiency, prioritise these according tocost, savings and certainty. Note that:•As a general rule, you should implement initiatives that generate a positive financial return, unless you have identified
other risks.

•

You can use simple payback calculations (how long it would take to recover the cost of an efficiency initiative throughreduced consumption) to quantify the advantages of each initiative.

•

You should also take GHG emissions into consideration and think about how these will be impacted by efficient energy use
over the full lifecycle of each product, project or process (see COP 26 Wastes and emissions).

RJC Code of Practices Guidance 227

Step 3. Implement• Adopt solutions that are technically and financially feasible and cost-effective.
• You don’t necessarily have to invest lots of money to make meaningful efficiency improvements. Simply reminding workers
to shut off equipment when not in use can also make a difference (see Figure 27.1).
• Consider using internal targets as a way to drive performance improvements.

Saving energy

Saving water

Install efﬁcient lighting.

Fix dripping taps and leaking pipes.

Put heating and cooling systems
on timers.

Install water-saving accessories (getadvice from local water authorities).

Do regular equipment maintenance.

Consider treating water for reuse.

Use energy-efﬁcient appliances.

Use dry techniques where possible(for example, to clean or transportmaterials).

Optimise equipment and processes.
Turn off lights and equipment
when not in use.
Insulate buildings.
Minimise use of hot water.
Capture and reuse waste heat.

Avoid using potable water for
non-drinking purposes.
Calculate the minimum volume ofwater you need and make
improvements where possible.

Figure 27.1. Examples of simple efficiency measures businesses can take to reduce their water and energy use

Step 4. Review• Get senior management to regularly review the business’s water and energy consumption to assess progress against
efficiency targets and identify cost savings made.
• Report your use of water and energy in alignment with COP 3 Reporting.

COP 27.3: Renewable energy
Members shall work towards using renewable energy in alignment with national frameworks, targets and/or legislation.

Points to consider:• Identify all the clean energy frameworks, targets and legislation that apply to your operations.
• Make a manager responsible for tracking applicable law and implementing any related initiatives (whether in response tonational frameworks or voluntary).

228 RJC Code of Practices GuidanceCOP 27.4: Water stewardship in mining
Members in the mining sector shall:a. Apply strong and transparent water governance, including policies, procedures and clear allocation of responsibilities.
b. Manage water at facilities effectively using a water balance and considering cumulative impacts.
c. Publicly report company water performance in line with COP 3 (Reporting).
d. Collaborate with stakeholders to achieve responsible and sustainable water use at a water catchment level.

Points to consider:• Water closely connects mining operations to the surrounding communities and landscape, so particular care needs to betaken to incorporate a catchment-level approach into their water management. If you are in the mining sector, you must
be able to show that you have a robust system for water management (or governance) that includes stakeholders and istransparent and effective. To help do that, make sure you:•create a policy on water management and establish procedures to fulfil it;•

define clear responsibilities for all internal and external stakeholders with a potential role in supporting the policy, andcommunicate the policy, procedures and responsibilities to all parties involved;•

understand whom might be impacted by your water use and vice versa and implement an effective engagement strategy
with these stakeholders in alignment with COP 32 Stakeholder engagement; and•publicly report your water management efforts through annual reports, sustainability reports or other legally required
forms of disclosure.

• The challenges related to water in specific catchments are shared by all the countries, sectors and communities present
there. Tackling them requires collaboration and concerted action from all parties, including government, civil society,business and local communities. That means that to use water sustainably, you must engage with all stakeholders that
may influence or be affected by your water use and discharge, as well as engaging with governments, local authorities andotherswho can help develop effective regulation for integrated water resource management.
• Effective water management at a mine is a significant task and requires use of a site-level management plan and a long-termwater balance that looks at the flow of water in, out and within the mining operation, and communicates both quantity andquantity values. Using a water balance will help you prioritise your efficiency efforts, but you should support it with othertechnical tools, such as operational flowcharts and site water circuit diagrams.
•

Remember to include water diversions in your risk assessment: while you may not actively manage or use diverted water,
it can still present risks to your operations and the catchment.

• For every new project (or significant change to existing projects), assess potential water impacts in the catchment area
through an environmental and social impact assessment that includes processes for stakeholder engagement and aligns with
COP 34 Impact assessment.
•

Remember to evaluate dependencies on water and environmental thresholds; and as water catchments can have manyusers, make sure you also consider cumulative impacts.

• Use meaningful metrics to measure water-related performance at your site. In particular, consider following the ICMM
water reporting guidance5 and:5•collate simple, consistent data on water withdrawal, discharge, consumption and efficiency for each site;•

compile this internal data into a company-wide dataset; and•use it to feed into formal external reporting systems such as the CEO Water Mandate, CDP Water and Global Reporting
Initiative.

ICMM, A Practical Guide to Consistent Water Reporting (2017) www.icmm.com/water-disclosure-standard

RJC Code of Practices Guidance 229

Check:■■Are you monitoring your energy and water use and keeping records?
■■Have you put in place energy and water efficiency initiatives?
■■Have you identified other significant natural resources used in the business, such as paper products?
■■Have you identified any renewable energy national frameworks, targets and/or legislation with which you must comply?
Mining sector members only:■■Have you established a water management system that demonstrates strong and transparent water governance?
■■Do you have a policy and established procedures for your water management system?
■■Can you demonstrate the facility is effectively using a water balance and considering cumulative impacts?
■■Do you have evidence of your collaboration with others on sustainable water use at a water catchment level?

E Further information
Websites:
Alliance for Water Stewardshiphttps://a4ws.org
Carbon Catalogue, Carbon Offset Directory
http://forestcarbonportal.org
Carbon Footprint, Reducing Your Impact
www.carbonfootprint.com
CDP (formerly Carbon Disclosure Project)www.cdp.net
Greenhouse Gas Protocol
http://ghgprotocol.org
IFC, Performance Standards
www.ifc.org/performancestandards
Intergovernmental Panel on Climate Change (IPCC)
http://www.ipcc.ch/International Emissions Trading Association (IETA)
www.ieta.org
UN Framework Convention on Climate Change (UNFCCC)
https://unfccc.int/
UN Global Compact, The CEO Water Mandatehttps://ceowatermandate.org
UN Global Compact, Local Network Resources: Engagement Framework
www.unglobalcompact.org/engage-locally/manage/engagement/caring-for-climate
US Environmental Protection Agency, WaterSense
www.epa.gov/watersense/

230 RJC Code of Practices GuidancePublications:
Business for Social Responsibility, Business Opportunities in Sustainable Consumption (2012)www.bsr.org/en/our-insights/report-view/business-opportunities-in-sustainable-consumption
Environmental Protection Authority Victoria (Australia), Lower Your Impact: Conserving Energy (2012)www.epa.vic.gov.au/bus/resource_efficiency/conserve_water.asp
European Commission, Non-Financial Reporting (2014)
https://ec.europa.eu/info/business-economy-euro/company-reporting-and-auditing/company-reporting/non-financialreporting_en
Greenhouse Gas Protocol, Corporate Standard (2015)www.ghgprotocol.org/standards/corporate-standard
ICMM, Position Statement on Water Stewardship (2017)www.icmm.com/water-ps
ICMM, A Practical Guide to Catchment-Based Water Management
www.icmm.com/guide-to-catchment-based-water-management
ICMM, A Practical Guide to Consistent Water Reporting (2017)www.icmm.com/water-disclosure-standard
ICMM, Water Management in Mining: A Selection of Case Studies (2012)www.icmm.com/en-gb/publications/water/water-management-in-mining-a-selection-of-case-studies
ICMM, Water Stewardship Framework (2014)www.icmm.com/water-stewardship-framework
IFC, IFC Performance Standards on Environmental and Social Sustainability (2012)https://www.ifc.org/wps/wcm/connect/c8f524004a73daeca09afdf998895a12/IFC_Performance_Standards.
pdf?MOD=AJPERES
IFC, Performance Standard 3: Resource Efficiency and Pollution Prevention (2012)www1.ifc.org/wps/wcm/connect/25356f8049a78eeeb804faa8c6a8312a/PS3_English_2012.pdf?MOD=AJPERESIFC and ICMM, Shared Water, Shared Responsibility, Shared Approach: Water in the Mining Sector (2017)www.ifc.org/wps/wcm/connect/ee079cb5-222c-4fe7-8844-8210ac77f0dc/ICMM-IFC-Water-and-Mining-FINAL.
pdf?MOD=AJPERES
MAC, Towards Sustainable Mining Framework: Water Stewardship (2017)
http://mining.ca/sites/default/files/documents/TSM-Water-Stewardship-Framework.pdf
Minerals Council of Australia, Water Accounting Framework for the Australian Minerals Industry (2011)www.minerals.org.au/water-accounting-framework-australian-minerals-industry
UN, Convention on Access to Information, Public Participation in Decision-Making and Access to Justice in Environmental
Matters (1998)
www.unece.org/fileadmin/DAM/env/pp/documents/cep43e.pdf
UNFCCC, The Paris Agreement (2015)
https://unfccc.int/process-and-meetings/the-paris-agreement/the-paris-agreement

RJC Code of Practices Guidance 231

Gold, silver,
PGM, diamondand coloured
gemstone
products

(COP 28) Product disclosure
A Definitions and applicability
This provision applies to members that handle diamonds, coloured gemstones, gold, silver or PGM products.
Advertising includes directly or indirectly promoting the sale or use of a product.
A coloured gemstone forms in nature. Each variety has unique chemical, optical and physical properties.
A composite coloured gemstone is created by bonding or blending together two or more different materials. The components
may be natural, synthetic or artificial. Composite gemstones can be made by fusing two or more parts together in parallel
planes, or by using chemical leeching to remove extraneous materials, followed by immersion in some type of glass or filler tofill in the cracks.
A diamond is a mineral that has been formed completely by nature without human interference during its formation.
A diamond simulant is a product that imitates the appearance of a diamond but does not have the same physical and chemical
properties.
An imitation or artificial coloured gemstone is a product that imitates the appearance of a natural gemstone but does not havethe same chemical or physical properties.
Product disclosure refers to the proper, complete and accurate disclosure of all relevant information about jewellery products,
including the types of treatments used to alter the product’s appearance, and whether or not the product needs special
care (either because of its physical characteristics or because of any treatments it has undergone). This information must be
disclosed for diamonds, treated diamonds, synthetic diamonds and diamond simulants; coloured gemstones and synthetic,
imitation, treated, artificial, reconstructed or composite coloured gemstones; and gold, silver and PGM products.
A reconstructed coloured gemstone (also called a reconstituted gemstone) is an imitation stone made by melting (without
subsequent crystallisation) or fusing together natural materials.
Representation includes illustrations, descriptions, expressions, words, figures, depictions or symbols shown in a way that
may reasonably be regarded as relating to the jewellery product. Representations, particularly to the final consumer, must be
truthful and accurate, without leaving out anything that may affect the product’s value, appearance, durability or rarity.
Selling includes offering a product for sale, exposing it for sale or displaying it in any way that could reasonably lead someone
to believe it is intended for sale.
A synthetic coloured gemstone is a man-made gemstone with the same chemical and physical properties as its naturally
occurring counterpart.
A synthetic diamond is a man-made diamond with essentially the same physical and chemical properties as a natural, mineddiamond.
A treated coloured gemstone has been altered to change its appearance or durability.
A treated diamond has undergone a process to alter its colour or clarity.
Sources:• American Gem Trade Association (AGTA), AGTA Gemstone Information Manual (2016)
https://agta.org/wp-content/uploads/2018/05/15thEditionGemstoneInformationManual.pdf• AGTA, Gemstone Enhancement Codes
https://agta.org/wp-content/uploads/2018/05/Enhancement-Codes-Labels-5163.pdf• World Jewellery Confederation (CIBJO), Blue Books
www.cibjo.org/index.php?option=com_content&view=article&id=270&Itemid=261

RJC Code of Practices Guidance 233

B Issue background
Product disclosure within the jewellery industry depends on honesty and transparency about the nature and quality of
products being bought and sold. Increasing use of technologies to treat stones, create synthetic or simulant stones or develop
new alloys add to the complexity of the jewellery supply chain and consumer market and increase the relevance of productdisclosure. It is especially important because end consumers rarely have good technical knowledge about the products they arebuying and rely on the advice of sellers.
Industry guidelines and legal requirements exist to protect consumers and guide those working with precious metals, coloured
gemstones and diamonds. These cover diverse areas, including:• gold, silver and platinum assaying, quality marking or hallmarking to indicate fineness;• diamond grading for larger stones through independent gemmological laboratories;• coloured gemstone and diamond treatments and enhancements;• standard terminology and classification for communicating product attributes;• whether a coloured gemstone or diamond is natural, synthetic or has been altered in any way; and• information requirements for altered coloured gemstones or diamonds when the treatment is temporary, diminishes overtime, requires special care or has a significant impact on the product’s value.
At all levels of the supply chain, misinformation poses a significant risk to the reputation of individual companies and theindustry as a whole. Companies failing to disclose all relevant information, or making false statements about articles sold,risk losing business and being expelled from industry organisations. Selling a product without disclosing full and accurate
information about it, or with misleading information, even unknowingly, is illegal under most jurisdictions. Offenders can facepenalties including fines and prison sentences.
The risk of undisclosed synthetic diamonds entering the jewellery supply chain have increased significantly in recent years.
Production techniques have developed to the point where it is possible to produce gem-quality synthetic diamonds that to
many jewellery professionals are almost indistinguishable from natural polished diamonds. However, through synthetic
detection undertaken with the correct experience, equipment and protocols they can be identified. At the same time, the costs
associated with producing synthetic diamonds have decreased and production capacity is increasing. The undisclosed mixing
of synthetic diamonds with natural diamonds is a growing concern for both the industry and consumers alike. Many companies
have introduced measures, such as routine testing, to manage these risks.

C Key regulations, standards and initiatives
International standards
The main international standards for product disclosure and representations have been developed by industry organisations
as part of a self-regulatory approach.
The World Jewellery Confederation (CIBJO) hosts the Blue Books:1 publications outlining terminology, classification andethical guidelines for diamonds, coloured gemstones and precious metals. The Blue Books are considered important standards
for product disclosure and, while voluntary, are directed at wholesalers, suppliers, manufacturers and retailers at all points inthe trade internationally. The standards are designed to apply to all methods of marketing and sales and cover both direct andindirect claims about the products.
The CIBJO Blue Books for gemstones and diamonds have been in use since 1975, regularly reviewed and updated to reflect
the latest knowledge. In 2007, the equivalent for precious metals was launched; others have followed.
Beyond the Blue Books, a number of international standards on product disclosure have come into force over the past decadeto provide a central reference point, better harmonise global practice and protect consumer confidence (see Figure 28.1).

1

CIBJO, Blue Books www.cibjo.org/introduction-to-the-blue-books

234 RJC Code of Practices Guidance

2010

2015

AGTA disclosure codes
CIBJO, AGTA and theInternational Colored
Gemstone Association(ICA) agree to adopt the
AGTA disclosure codes.

ISO descriptors
The International Organization for Standardization (ISO) publishes
standard ISO 18323 deﬁning the permitted nomenclature for use inbuying and selling diamonds, including speciﬁc descriptors that aredesigned to be understood by consumers. It explicitly deﬁnes a diamondas ‘created by nature’ and goes on to say that using the term 'diamond'without further speciﬁcation always implies 'natural diamond’.

2013

2017

2018

IDC diamond grading rules
The International DiamondCouncil (IDC) revises its
International Rules for Grading
Polished Diamonds, which arerecognised by CIBJO andprovide the reference point forclear diamond terminology.

Coloured stone terms
CIBJO publishes a special
report indicating that the
Coloured Stone
Commission is developing
nomenclature of the terms
used in the coloured
gemstones industry.

Diamondterminology guide
Nine leading diamond industry
organisations develop the
Diamond Terminology Guide
as a reference document for
use when referring to diamonds
and synthetic diamonds.

Figure 28.1. Key initiatives in international standards to support product disclosure since 2010

National law
Specific laws and regulations may vary across countries, but most nations have mechanisms in place to protect consumers,
regulate trade and marketing and prevent fraud. Most have legislation that makes it unlawful to wrongly describe any goods interms of their composition, physical characteristics or history. Legal obligations may cover knowingly, as well as unknowingly,
providing wrongful or misleading information in the sale of goods.
Some countries also have specific laws or regulations relating to gemstones and precious metals, for example the US Federal
Trade Commission (FTC) guides for jewellery, precious metals and pewter businesses to help prevent deception in marketing.2

2

FTC,Guides for the Jewelry, Precious Metals, and Pewter Industries (2018)www.ftc.gov/enforcement/rules/rulemaking-regulatory-reform-proceedings/jewelry-precious-metals-pewter-industries

RJC Code of Practices Guidance 235

D Implementation guidance
COP 28.1: Representations
Members shall not make any untruthful, misleading or deceptive representation, or make any material omission in
the selling, advertising or marketing of any gold, silver and PGM materials, jewellery products, diamonds, coloured
gemstones, or treated, synthetic, reconstructed, composite or simulant diamonds or coloured gemstones. Members
shall follow internationally accepted standards.

Points to consider:• A representation can take many different forms (including words, symbols and depictions) and can be made through manydifferent media, including the internet. It can be express or implied.
• A misrepresentation or material omission involves deliberately leaving out or misstating information that could influence abuyer’s decision; and it may be illegal. For example, failing to disclose to a buyer that a gold ring is hollow (i.e. electroformed)
would be considered a material omission.
• Whether information is ‘material’ or not depends on the business context: material information for a retail consumer may bedifferent from that for a business-to-business transaction. In considering whether a piece of information is material or not,ask yourself whether leaving it out goes against accepted practice in your sector or jurisdiction.
• Make sure you are aware of the applicable law regarding false and misleading representations, including what constitutes‘material information’ with regard to what would be considered ‘material omission’, particularly for consumers.
• Train your sales staff to ensure they know their legal obligations and do not engage in misleading or deceptive verbal
representations or omit material information about the products they are selling.
• Internationally accepted standards are listed in Figure 28.1, including but not limited to the CIBJO Diamond Book3 and theISO 18323 standard.4 The Diamond Terminology Guideline5 is the reference for diamond nomenclature.
• Other terms are sometimes used, for example ‘simulant’ coloured gemstones can be called ‘imitation’, and ‘composite’
diamonds can be called ‘assembled’. If in doubt about terminology for coloured gemstones, consult the CIBJO Blue Book andISO 18323 standard.

COP 28.2: Disclosure
Members shall disclose information on the physical characteristics of the materials listed in COP 28.1 in compliancewith applicable law. Unless a conflict with applicable law exists, members shall apply the following requirements to
support disclosure about physical characteristics:

Points to consider:• Establish a policy or register on product disclosure that explains relevant laws, regulations and industry standards, including
penalties for non-compliance (you should have already gathered information on product disclosure standards and regulatory
requirements as part of implementing COP 1 Legal compliance).
• Use the terms set down in national legislation. If there is no applicable law, follow the COP. Note that if there is a conflict
between COP provisions and applicable law (i.e. where following the COP requirements under this provision would result inyou being in a position of non-compliance with applicable law), then the law has precedence. If you find a conflict, please alert
the RJC as soon as possible so that we can develop consistent advice for our members and auditors.
• As an RJC member, you must maintain up-to-date knowledge of the relevant legislation across all your areas of operation. If
your responsible senior managers are not familiar with the applicable law, particularly if your business includes retail sales,
you run a higher risk of non-conformance.
• Remember that disclosure requirements apply at each and every level of the jewellery supply chain, and that you must
disclose information in accordance with the applicable law and the COP even if your buyer has not asked for it. Establish
procedures for proper disclosure in all your transactions, including purchases. These should include a clear statement
on how to proceed if a supplier fails to provide appropriate product information. Look at example invoices for ‘common
disclosure’ within the trade on the ICA and AGTA websites.

3

CIBJO, The Diamond Book (2015) www.cibjo.org/introduction-to-the-blue-books

4

ISO, ISO 18323:2015 Jewellery—Consumer Confidence in the Diamond Industry (2015) www.iso.org/standard/62163.html

5

AWDC, CIBJO, DPA, GJEPC, IDI, IDMA, USJC, WDC and WFDB, Diamond Terminology Guideline (2018) www.awdc.be/en/guideline

236 RJC Code of Practices Guidance• In cases where you sell a gemstone, diamond or jewellery product to an end consumer who will not personally view the
product (for example, because you are selling it through a catalogue, mail order, website, shopping channel, telephone orderor other sales platform), you must still disclose relevant information in the product description.
• Where applicable, establish procedures for reviewing and approving sales and marketing materials to ensure that they do
not contain any potentially misleading or deceptive information and that they comply with the law and the COP.
• Train your staff so that they understand, where appropriate:•

all applicable gold, silver and PGM quality marks and hallmarks;•

the 4 Cs of diamonds (cut, colour, clarity and carat weight);•

any relevant legal compliance requirements (for example, if you are selling in the United States, you are legally required tocomply with FTC guidelines); and•any relevant disclosure standards (for example, the CIBJO Blue Book or AGTA Gemstone Information Manual).

• Record-keeping is critical, especially during the processing stage; make sure you clearly assign someone with responsibility
for implementing and checking all record-keeping procedures.

COP 28.2A: Gold, silver and PGM
a. The fineness of gold, silver or PGM shall be accurately disclosed. The description of fineness or content shall be equallyconspicuous as the word ‘gold’, ‘silver’ or the PGM or abbreviation. Any quality marks used shall be applied in accordancewith applicable law or industry standards.

Points to consider:• If you apply quality marks to a product, these must indicate the quality of the gold, silver or PGM and be in accordancewith applicable law or relevant international standards. In the United States, for example, you must also include a federally
registered trademark.
• You do not have to include a description of fineness if it is not required by applicable law. For example, some jurisdictions do
not require a description of fineness for gold that is 24k, and platinum that is more than 950 parts per thousand.

COP 28.2B: Platingb. The use of gold, silver and PGM as a plating material shall be accurately disclosed. The description of the plating andfineness or content of material used shall be equally conspicuous as the word ‘gold’, ‘silver’ or the PGM or abbreviation.

Points to consider:• Ensure you comply with applicable law in disclosing information about metal plating of any kind. If there is no applicable law,follow the FTC’s Guides for the Jewelry, Precious Metals, and Pewter Industries6 on requirements for plating disclosure.

COP 28.2C: Treatmentsc. Treated diamonds and treated or heated coloured gemstones shall be disclosed as either ‘treated’ or with specificreference to the treatment. The description shall be equally conspicuous as the word ‘diamond’ or the name of thecoloured gemstone. Any special care requirements that the treatment creates shall be disclosed.

Points to consider:• You cannot mislead the consumer about treatments in any way. Do not use any term that is designed to disguise the fact thatthe product has been treated, or to imply that treatment is part of the normal polishing process. Do not, for example, use
the term ‘improved’ to describe a treated diamond or coloured gemstone; and do not use the term ‘organic’ to describe lead
glass-filled rubies.
• The COP does not prescribe where to place the description of a treatment, but you do have to ensure the treatment
description is clearly associated with the product and that it is just as conspicuous as the stone’s name. For example, thewords ‘diamond’ and ‘treated’, or the words ‘ruby’ and ‘heated’, must be equally conspicuous. Always check applicable law for
any additional requirements.

6

FTC, Guides for the Jewelry, Precious Metals, and Pewter Industries (2018) https://www.ftc.gov/news-events/media-resources/tools-consumers/jewelry-guides

RJC Code of Practices Guidance 237

• Do not use the names of firms, manufacturers or trademarks in connection with treated diamonds or coloured gemstones
unless such names are clearly followed by the word ‘treated’ or are otherwise equally conspicuously and prominently
disclosed as treated.
• If you suspect, but are not certain, that a coloured gemstone or diamond has been treated, then you must disclose what you
know. Some coloured gemstone types are known to be routinely treated and should be disclosed as such.

‘Black diamonds’
Although black diamonds may occur in nature, polished diamonds that are black in colour are very likely to have beentreated. Some marketers may assume this is commonly known and refer to them simply as ‘black diamonds’ without
disclosing the treatment used. This is improper. ISO 18323:2015 explicitly defines a diamond as ‘created by nature’ andstates that using the term ‘diamond’ without further specification always implies ‘natural diamond’.
Whenever a diamond has been treated, it must be disclosed. The CIBJO Diamond Book demands the seller to makespecific reference to the treatment used and ensure the treatment’s description is as conspicuous as the word ‘diamond’or ‘synthetic diamond’, as the case may be.

COP 28.2D–F: Synthetics, composites and reconstructed stones
d. Wholly or partially synthetic diamonds or synthetic coloured gemstones shall be disclosed as ‘laboratory created’,‘laboratory grown’ and/or ‘synthetic’. The description shall be equally conspicuous as the word ‘diamond’ or the name of thecoloured gemstone.
e. Composite (or assembled) diamonds and coloured gemstones constructed of two or more parts shall be disclosed
as ‘composite’, ‘assembled’, ‘doublet’ or ‘triplet’, and by the correct name of the material of which it is composed. The
description shall be equally conspicuous as the word ‘diamond’ or the name of the coloured gemstone used.
f. Reconstructed diamonds and coloured gemstones shall be disclosed as such and the description shall be equallyconspicuous as the word ‘diamond’ or the name of the coloured gemstone.

Points to consider:• ISO 18323:2015 defines a stone as synthetic if the product is artificial (that is, is produced completely or partially throughhuman intervention) and its properties are essentially the same as those of its natural counterpart. Synthetic stones are
therefore artificial products that essentially have the same chemical composition, crystal structure and physical (including
optical) properties as a diamond/coloured gemstone.
• You must not use any term that is designed to disguise the fact that a diamond or coloured gemstone is synthetic, or thatmisleads the consumer in any way. That includes using abbreviations such as ‘lab grown’, ‘lab created’, ‘lab diamond’ or ‘syndiamond’.
• Remember that the word ‘laboratory’ refers to the facility that may produce the synthetic stones. Do not confuse it with agemmological laboratory that analyses, authenticates, identifies and grades diamonds and coloured gemstones.
• Note that the term ‘cultured’ is not an acceptable description for synthetic diamonds or coloured gemstones under ISO
18323or the COP. If you are in the United States, you are allowed to use the term under FTC 2018 guidelines, but only when
it is qualified by a clear and conspicuous disclosure (such as ‘laboratory created’, ‘laboratory grown’ or ‘synthetic’) conveyingthat the product is not a mined stone.
• Using the name of a stone without qualification (for example, ‘diamond’, ‘gemstone’ or ‘emerald’) always means you aretalking about a natural, untreated stone.
• If you work with stones that have been synthetically enlarged (for example, starting with a 0.25ct diamond and growing it to
0.75ct), always disclose them as ‘laboratory created’, ‘laboratory grown’ and/or ‘synthetic’.

238 RJC Code of Practices GuidanceCOP 28.2G: Simulants (or imitation)g. Any artificial product used to imitate the appearance of diamonds or coloured gemstones without having their chemicalcomposition, physical properties and/or their structure shall be disclosed as ‘imitation’ or ‘simulant’ along with the correctname of the material of which it is composed, for example ‘x compound’, ‘glass’, ‘plastic’. The description shall be equallyconspicuous as the word ‘diamond’ or the name of the coloured gemstone.

Points to consider:• You must not use any term designed to disguise the fact that a stone is a simulant, or that misleads the consumer in any way.
That includes using words such as ‘real’ or ‘genuine’.
• You can only use the word ‘natural’ to describe a simulant if it is a naturally occurring mineral or compound, in which case you
must also give its actual name.
• Note that this provision only applies to simulants that are for sale. Simulants that are exclusively used for promotional or
display purposes, for example in retail environments, do not need disclosure.

COP 28.2H: Descriptions of polished diamonds and coloured gemstones
h. Describe the size or carat weight, colour, clarity or cut of diamonds and the quality of coloured gemstones in accordancewith the recognised guidelines appropriate to the particular jurisdiction.

Points to consider:• Describe the size or carat weight, colour, clarity and cut of diamonds and the quality of coloured gemstones in accordancewith IDC rules7 or the CIBJO Gemstone Book.8•

Note that in some cases, for example for small diamonds or coloured gemstones that are set in jewellery, you do not haveto provide individual descriptions for each stone.

• Do not use the word ‘flawless’ to describe:•

any diamond or coloured gemstone that contains flaws, cracks, inclusions, carbon spots, clouds, internal lasering, orother blemishes or imperfections of any sort when examined under a corrected magnifier at 10-power, with adequate
illumination, by a person skilled in grading or appraisal; or•

any article of jewellery that contains any diamonds or coloured gemstones that do not meet the definition of flawless.

• Only use the terms ‘brilliant’, ‘brilliant cut’ or ‘full cut’ when referring to a round diamond with at least 32 facets plus the table
above the girdle, and at least 24 facets below it.
• Avoid commercial terms such as ‘pigeon blood’ or ‘royal blue’ to describe colour in gemstones unless the term has been
accepted into internationally accepted nomenclature or terminology and has clearly defined parameters. Refer to the CIBJO
Gemstone Book and the Laboratory Manual Harmonisation Committee for further information and updates.

COP 28.2I: Place of origin for coloured gemstones
i. When describing the place of origin of a coloured gemstone, the information on how this was determined shall be
disclosed. The place of origin shall only be used when it denotes a geographical area where gemstones have been mined.

7

IDC, IDC-Rules for Grading Polished Diamonds (2013) www.internationaldiamondcouncil.org/sites/default/files/downloads/IDC-Rules%20Version%202013%20%28July%29.pdf

8

CIBJO, The Gemstone Book (2015) www.cibjo.org/introduction-to-the-blue-books/

RJC Code of Practices Guidance 239

What is ‘place of origin’ and why is it important for coloured gemstones?
The ‘place of origin’ for a coloured gemstone refers to the geographical area where the stone was originally mined. Buyers
and sellers alike want to know a stone’s place of origin because it can impact the stone’s value. Gemstone traders relyon different levels of assurance about a stone’s place of origin, sometimes using a report from a qualified gemmologicallaboratory but also sometimes accepting a verbal assurance.
In all cases, information on place of origin should be treated as opinion, rather than fact. A ruby from Mozambique may be
visually very similar to a ruby from Myanmar, and it is not always easy to pin down the correct place of origin even throughgemmological laboratory analysis. Experienced gemmologists using the correct instruments are generally able to find the small
differences that allow them to establish place of origin with relative certainty, but this is always a matter of informed opinion.
Do not confuse place of origin descriptions with information on the source or origin of minerals for the purposes of due
diligence on conflict-affected and high-risk areas (COP 7 Due diligence for responsible sourcing from conflict-affected andhigh-risk areas). Use of the place of origin for coloured stones is in no way associated with risk conditions. Also, since placeof origin descriptions are already covered under this provision, they cannot be audited as provenance claims under COP 14
Provenance claims. Only claims that go beyond the requirements of the COP will be audited as a provenance claim.

Points to consider:• Make sure any descriptions for place of origin adhere to guidance set out in the CIBJO Gemstone Book. This means ensuringthat you:•only use names of geographical areas to denote the areas where gemstones were mined;•

only offer place of origin information as a matter of opinion;•

do not use place of origin to imply level of quality; and•do not use the names of cutting, processing or exporting centres to imply place of origin.

• Clearly state whether or not you have determined the place of origin based on gemmological laboratory analysis. If you have,remember to include the name of the laboratory and the date of analysis.

Country of origin: customs law in the United States
US customs law dictates that you must declare the country of origin for all imported products. Where a product undergoes‘substantial transformation’ before entering the United States, the country of origin will change to reflect where thetransformation took place. Jewellery importers must therefore take steps to identify the country where the product ismanufactured, noting that simply setting a stone does not confer substantial transformation. For example, if a stone wasmined in Myanmar, cut and polished in Thailand (a substantial transformation), and set in an Italian-manufactured gold
necklace in Italy, the product would need to be marked country of origin Thailand (gemstone) and Italy (necklace) for
customs purposes.
Make sure you follow all applicable laws, including customs law. Take care, however, to prevent potential confusion between‘country of origin’ (for customs) and ‘place of origin’ (the geographic area where the stone was mined). Any information
provided to clients about country or place of origin must be clear and avoid misleading them about where the stones
are originally from. In the example above, any descriptors to clients about the place of origin of the stone must indicate
Myanmar and say how this was determined (for example, based on analysis by gemmological laboratory X on Y date).

240 RJC Code of Practices GuidanceCOP 28.2J: Product health and safety information
j. Any relevant health and safety information about the materials listed in COP 28.1 in jewellery products sold by members
to end consumers shall be disclosed.

Points to consider:• In their natural state, gold and silver are inert and considered non-hazardous. But when used in jewellery products, they areoften alloyed with other metals. Ingestion remains non-toxic but, depending on the type and amount of these alloys, the final
jewellery product may cause contact dermatitis or other allergic reactions:•

For example, metal jewellery containing nickel alloys has been documented to cause nickel allergies, which tend to first
appear as a red itchy rash on the skin where the jewellery is worn. This allergic reaction is sometimes called ‘jewellerydermatitis’.It can only be treated by avoiding all contact with the product containing nickel.

• Diamonds and coloured gemstones are also chemically inert in their natural state. The only potential health hazards arethose introduced through treatments.
•

For example, some irradiation treatments to enhance a stone’s colour can end up making the stone radioactive, potentiallyposing threats to human health. This includes irradiation using radium in a nuclear reactor or accelerator (but not cobalt or
cesium irradiators). In practice, radioactive stones are rare because the distribution of irradiated stones tends to be heavily
regulated to ensure levels of radioactivity remain within safe limits.

•

For further guidance, see ISO 10377 on consumer product safety.9

COP 28.3: Undisclosed synthetic diamonds
Members shall take substantive and documented action to avoid buying or selling undisclosed synthetic diamonds. To
that end, members buying or selling diamonds shall:

COP 28.3A: Written warranty
a. Obtain a written warranty from their suppliers.

Points to consider:• Develop a warranty statement and ask your suppliers to include this on all invoices with respect to diamonds. For example,
the World Federation of Diamond Bourses (WFDB) statement:‘The diamonds herein invoiced are exclusively of natural origin and untreated based on personal knowledge and/or written
guarantees provided by the supplier of these diamonds.’

COP 28.3B: Policies, procedures, training and monitoringb. Have effective policies, procedures, training and monitoring systems in place to avoid the possibility of undisclosed
synthetic diamonds being switched for natural diamonds at their facilities

Points to consider:• Establish one or more product security policies that:

9•

include measures to avoid the possibility of undisclosed synthetic diamonds being switched for natural diamonds at yourfacilities—use the policies to set out the expectations of employees, on-site contractors and visitors (also review COP 13
Security);•outline how you will segregate your natural diamond processing and trade from your synthetic diamond business (whereapplicable);•address all potential contamination points (that is, anywhere in your facilities with a potential risk that synthetic diamonds
could be switched for natural diamonds);•

are reflected in relevant operational procedures; and•are communicated internally.

ISO, ISO 10377:2013 Consumer Product Safety—Guidelines for Suppliers (2013) www.iso.org/standard/45967.html

RJC Code of Practices Guidance 241

• Make sure that your operational procedures cover the handling, storage and transportation of diamonds at all points in yourfacilities. That includes, for example:•

ensuring strict controls to determine who is authorised to handle diamonds, and under what circumstances;•

clearly defining and controlling arrangements for securely storing diamonds on-site;•using strong inventory management and chain-of-custody systems for all diamonds stored, transported and handled onsite; and•reviewing your security systems in and around the areas where diamonds are handled, stored and transported.

• Train all staff involved in handling, moving or storing diamonds at your facilities. Review your training programmes at least
once a year.
• Monitor how well your policies and procedures are implemented and review their effectiveness regularly. Make sure you
address any gaps and weaknesses identified during review, and investigate all instances of product switching thoroughly.
• In all cases, be sure to fully document all your procedures.

COP 28.3C: Due diligence on undisclosed synthetic diamondsc. Employ a documented due diligence process to identify and mitigate risks related to undisclosed synthetic diamonds
entering their supply chain. Identify possible high-risk contamination points.

Points to consider:• Map your diamond sources and suppliers, and identify anywhere with a high risk of introducing undisclosed synthetic
diamonds into your supply chain. Note:•

Buying rough diamonds is considered low risk because given the correct training and experience you can easily distinguishrough natural diamonds from rough synthetic ones by eye, without the need for detection equipment. If your company
handles rough diamonds, make sure your relevant staff know how to make this distinction.

•

Buying polished diamonds from the open market carries varying levels of risk. If your supplier is audited to ensure they
address contamination points (and can provide auditing results), buying polished diamonds from them is considered low
risk. If there is insufficient or no evidence that your supplier has addressed potential contamination points, the risk is
considered high.

• Update your risk map any time you engage a new supplier.
• Document your due diligence process and keep records of any action you take to mitigate risk, such as gathering further
information from suppliers.

COP 28.3D: Testingd. For polished diamonds classified as high risk, carry out testing using a defined, credible and transparent protocol. This canbe an existing industry-accepted protocol or one that is defined by the member. The protocol must:
i. Incorporate an appropriate approach for testing loose and set polished diamonds.
ii. Include either in-house testing, using relevant and effective detection equipment, or outsourced testing by a qualified
service provider, such as a gemmological laboratory.
iii. Include testing at least once at a point in the process where there is no longer any risk of introducing undisclosed
synthetics before the diamond parcel is sold. This is normally just before sale.
iv. Be available to clients, including the procedure for managing test referrals.

Points to consider:• Establish a robust protocol for testing polished diamonds for undisclosed synthetic diamonds. You can develop your own
new protocol or use an existing one, for example one developed by a supplier or customer. Either way, make sure you
document it and make it accessible to suppliers, customers and other relevant stakeholders.
• In all cases, your testing protocol should be defined, credible, robust and transparent, as set out in Table 28.1.
• Use the results of Project ASSURE (https://diamondproducers.com/assure/) to help you choose appropriate equipment for
testing. This project, which is a collaboration of the Diamond Producers Association (DPA) and Signet Jewelers, tests theperformance and functionalities of available equipment (or diamond verification instruments) using an independent testinglaboratory and publishes the results to help companies make informed decisions about which equipment to use.

242 RJC Code of Practices GuidanceTable 28.1. Characteristics of an acceptable protocol for testing polished stones and diamond parcels forundisclosed synthetic diamonds
Protocol characteristics

Defined

Implementation notes• Aim to test all high-risk polished stones and diamond parcels. But be practical:
in some cases, for example if you are handling large numbers of very small
The protocol must include
melee polished diamonds, testing all stones may be impractical. At a minimum,
an approach for testing
you will need a robust sampling approach for testing high-risk stones, ensuringloose and set polisheddiamonds classified asa large enough sample size that is statistically significant.
high risk.
• If you outsource your testing, make sure that the protocol and sampling
approach used by your service provider is fully documented.

Credible

Robust

The protocol must
include either in-housetests using relevant
and effective detection
equipment or tests
outsourced to a qualified
gemmological laboratory
or equivalent.

• There are many different diamond screening and testing technologies available
on the market. Make sure you use appropriate equipment that is specificallydesigned to identify synthetic diamonds and disclose which technology you areusing in your protocol.
• Be sure to take account of the error margin specified for the particularequipment you are using as this may impact the reliability of the results.
• If you prefer to outsource testing, make sure your service provider is suitably
qualified, with appropriate product control systems and protocols.

The protocol must include • It is up to you to decide when to test your stones. You can test them once orat least one round ofmany times. Ideally, you should test stones once when you buy them, and again
testing with no further
before you sell them.
risk that undisclosed•
Whatever you decide, you must be able to show that there is no further risk ofsynthetics will becontamination between your last test and the stones’ sale.
introduced before sale.
• You must make your protocol available to clients, either by publishing it online
or by making it available on request.

Transparent

The protocol in full must
be available to clients.

• This includes outlining your process for managing referrals, being clear about
when and how you deal with them. For example, where screening results
are inconclusive, the stones are retested using a different device or sent to a
gemmological laboratory for full testing.

Claims on testing of synthetic diamonds
You may be applying testing methodologies that go beyond the requirements of COP 28.3d, for example testing 100
per cent of diamonds. Whatever approach you choose, this is part of ensuring that you are not making any misleading
representation on the product you are selling (that is, making sure you are not selling synthetics that are represented as
diamonds).
As such, this does not need to be audited as a provenance claim. However, your testing methodology will be checkedas part of your compliance with COP 28.1 to ensure that it is truthful and substantiated. For example, if your process
specifies that you are testing 100 per cent of stones, you will need to provide evidence of this.

Check:■■Do you know the applicable regulatory requirements and disclosure standards for diamonds, coloured gemstones, gold,
silver and PGM products?

■■Can you show the auditor how you check that sales and marketing materials comply with the law and with COP
requirements?

■■Do you have appropriate record-keeping and training to support proper product disclosure?
■■Have you developed policies and procedures to avoid buying or selling undisclosed synthetic diamonds?
■■Do you have a documented protocol for testing polished diamonds?

E Further information

RJC Code of Practices Guidance 243

Websites:
American Gem Trade Association (AGTA)
www.agta.org
Diamond Producers Association (DPA)
https://diamondproducers.com
FTC, In the Loupe: Advertising Diamonds, Gemstones and Pearlswww.lawpublish.com/ftc-gem.html
International Colored Gemstone Association (ICA)
www.gemstone.org
Jewelers Vigilance Committee (JVC)
www.jvclegal.org
Laboratory Manual Harmonization Committee
www.lmhc-gemology.org
US Federal Trade Commission (FTC)
www.ftc.gov
World Gold Council (GC)www.gold.org
The World Jewellery Confederation (CIBJO)
www.cibjo.org

Publications:
AWDC, CIBJO, DPA, GJEPC, IDI, IDMA, USJC, WDC and WFDB, Diamond Terminology Guideline (2018)www.cibjo.org/wp-content/uploads/2018/01/Diamond-Terminology-Guideline.pdf
CIBJO, Blue Books
www.cibjo.org/introduction-to-the-blue-books
CIBJO, Understanding disclosure terminology is key to protecting consumer confidence in gemstones (2017)www.cibjo.org/congress2017/wp-content/uploads/2017/09/CIBJO-Special-Report-2017-Coloured-Stones.pdf
FTC, Commission Denies Petition Regarding Use of Term ‘Cultured’ to Describe Laboratory-Created Gemstones; Commission
Approves Federal Register Notice Regarding Fees to Access the National Do Not Call Registry (2008)
www.ftc.gov/opa/2008/07/jvc.shtm
IDC, IDC Rule Book (1995)
www.internationaldiamondcouncil.org/idc-rule-book
ISO, ISO 18323:2015 Jewellery—Consumer Confidence in the Diamond Industry (2015)
www.iso.org/standard/62163.html

244 RJC Code of Practices Guidance(COP 29) Kimberley Process certification
scheme and World Diamond Council
system of warranties
A Definitions and applicability
This provision applies to RJC members that handle diamonds.
Conflict diamonds are rough diamonds used by rebel movements or their allies to finance conflict aimed at undermining
legitimate governments, as described by the UN Security Council (UNSC) and as recognised by the UN General Assembly(through resolution A/RES/55/56).1
The Kimberley Process Certification Scheme (KPCS) is a binding joint government, international diamond industry and civilsociety initiative to stem the flow of conflict diamonds.
The World Diamond Council (WDC) System of Warranties (SoW) is a programme to strengthen the KPCS. The SoW requires
all diamond suppliers and jewellery manufacturers to pass on a warranty statement each time rough and polished diamonds
change hands, assuring the next buyer that they were traded in compliance with the KPCS.
Sources:• Jewelers of America [US]www.jewelers.org• Kimberley Process Certification Scheme
www.kimberleyprocess.com• World Diamond Council
www.worlddiamondcouncil.org

B Issue background
The issue of conflict diamonds began gaining public prominence in the late 1990s, as various human rights non-governmentalorganisations drew attention to the illegal trade in rough diamonds that was funding rebel movements in Angola and Sierra
Leone and indirectly contributing to human rights atrocities. The diamond and jewellery industry was thrust into the media andconsumer spotlight.
In response, the industry, through its representative organisation the World Diamond Council (WDC), began working witha broad range of stakeholders, including civil society, affected governments and the UN, to seek a solution. Their meetings
became known as the Kimberley Process; their outcome was the Kimberley Process Certification Scheme (KPCS) to prevent
conflict diamonds from entering the supply chain. The KPCS is implemented by governments and imposes requirements on
the export and import of legitimate rough diamonds between participating countries. To support it, the WDC also created a
voluntary programme of industry self-regulation called the System of Warranties (SoW) that extends to the trade in cut andpolished stones.
The diamond industry stands firmly against complicity in the sale of conflict diamonds and is committed to both the KPCS andthe SoW. Companies that fail to abide by either risk expulsion from industry organisations and loss in trade.
The KPCS and SoW definition of ‘conflict diamond’ was originally aimed at rebel movements and does not include violence andhuman rights abuses perpetrated by state actors or private security firms outside the context of efforts to unseat legitimate
governments. In this sense, while compliance with the KPCS is essential, it is important to remember that this alone does notnecessarily provide assurance that diamonds are not connected to other types of adverse impacts associated with conflictaffected and high-risk areas.

1

UN General Assembly, The Role of Diamonds in Fuelling Conflict: Breaking the Link Between the Illicit Transaction of Rough Diamonds and Armed Conflict as aContribution to Prevention and Settlement of Conflicts (2001) https://undocs.org/en/A/RES/55/56

RJC Code of Practices Guidance 245

C Key regulations, standards and initiatives
The Kimberley Process Certification Scheme (KPCS)The KPCS (www.kimberleyprocess.com), which came into effect in 2003, requires participating nations to keep conflictdiamonds out of legitimate channels of commerce. Under the scheme, all imports and exports of rough diamonds must go
through a government-monitored process that ensures those engaged in the export of rough diamonds:• keep records on the rough diamonds they ship, to demonstrate they are not conflict diamonds;• ensure that diamonds are packed in tamper-resistant containers; and• employ a forgery-resistant, government-verified certificate with a unique identity number and data to describe theshipment’s contents, value, exporter and importer.
Government signatories to the KPCS must implement national legislation that enforces internal controls on the movement ofrough diamonds, and can only move them to or from other countries that are part of the KPCS.

The World Diamond Council System of Warranties (SoW)
Under the SoW (www.worlddiamondcouncil.org/downloads/WDC%20SoW%20Guidelines.pdf), every transaction of
diamonds—regardless of whether they be rough, polished or set in jewellery—must be accompanied by a written warranty
on the invoice every time the diamonds change hands. The system covers the full supply chain, extending all the way down toretail jewellers (but not to end consumers). For companies, the SoW means ensuring that every shipment of rough or polisheddiamonds bought or sold is covered by the required warranty, and reconciling all warranties every year.

D Implementation guidance
COP 29.1 and 29.2: Conflict diamonds and Kimberley Process certification scheme
29.1 Members shall neither knowingly buy or sell conflict diamonds nor help others to do so.
29.2 Members involved in the international trade of rough diamonds shall comply with the Kimberley Process
Certification Scheme (KPCS) minimum requirements and recommendations as incorporated into the applicablelegislation of countries where they operate.

Points to consider:• The KPCS minimum requirements are set out in Annexes I and II to the KPCS Core Document2 and in the KPCS
Administrative Decision on Improving Implementation of Internal Controls in the KPCS.3• In practice, the KPCS means not importing or exporting diamonds without government-validated certificates. That is, each
shipment of rough diamonds crossing an international border from one Kimberley Process participant to another must be
accompanied by a uniquely numbered and government-validated KPCS certificate.
• Make a senior manager responsible for managing how you implement the KPCS and SoW, including any relevant internal
policies and procedures, staff training and external reporting. This person should also be responsible for maintaining up-todate information on national legislation relevant to implementing the KPCS in all jurisdictions where you operate.
• Make sure you have robust systems, including procedures, testing and training, to prevent transactions of diamonds that:•come from suspect sources, unknown suppliers or countries that are not part of the KPCS (check the Kimberley Process
website, www.kimberleyprocess.com); or•

are from any sources that have officially failed to observe KPCS regulations prohibiting the trade in conflict diamonds.

• Any diamonds from a region or country that a duly authorised government agency has indicated is a source of conflictdiamonds must have been exported in compliance with the KPCS.
• Doing a risk assessment appropriate to your business’s circumstances might help you identify your vulnerability to
involvement in the sale of conflict diamonds.

2

KPCS, Kimberley Process Certification Scheme www.kimberleyprocess.com/en/kpcs-core-document

3

KPCS, Administrative Decision on Improving Implementation of Internal Controls in the KPCS (2006)
www.kimberleyprocess.com/en/2006-administrative-decision-internal-controls

246 RJC Code of Practices Guidance• If you want to re-export rough diamonds that have already been shipped with a KPCS certificate, you must be able to show,
in a way that can be audited, that the stones in the shipment are covered by the necessary warranties.
• In all cases, you should help establish and participate in a national and international system of industry self-regulation
to effectively co-operate with relevant authorities, fulfil the Kimberley Process objectives and facilitate diamond trade(see COP 29.3). Most countries where there is diamond trade already have representative groups that co-operate with
Kimberley Process bodies: make sure you support and promote these.

COP 29.3: System of warranties
Members involved in buying and selling diamonds, whether rough, polished or set in jewellery, shall adopt the World
Diamond Council System of Warranties (SoW).

Points to consider:
SoW statement• Each individual invoice you issue (and receive) for diamonds must carry the SoW warranty statement:‘The diamonds herein invoiced have been {sourced} purchased from legitimate sources not involved in the funding of conflict,in compliance with United Nations Resolutions and corresponding national laws {where the invoice is generated}. The seller
hereby guarantees that these diamonds are conflict free and confirms adherence to the WDC SoW Guidelines.’• Where national law prevents the SoW statement from being included in your invoice, you should include it in separate
accompanying documents.
• Make sure you only trade with companies that include the SoW statement on their invoices.
• Put procedures in place to ensure that you do not accept shipments of diamonds if they do not come with the SoW
statement, and document next steps should a supplier fail to provide an adequate warranty.

Keeping records and self-assessment• If you are involved with the international trade of rough diamonds, integrate your record-keeping into your normal internal
company procedures.
• Keep records for at least three years. Your records must include:•

The daily buying, selling or exporting records listing the names of suppliers and/or buyers, their licence number and theamount and value of diamonds sold, exported or purchased. This is to ensure that all rough diamonds traded can be traced
to imports and exports with valid KPCS certificates. If asked for by a duly authorised government agency, these records
must be able to prove compliance with the Kimberley Process.

•All warranty invoices received and issued as per the SoW when buying or selling diamonds. This is to check you havea system of controls that ensures all diamonds in and out are accompanied by the correct warranty statement andinformation.

• You must reconcile the warranties in and out every year as part of an internal self-assessment (the WDC is developing a tool
to help with this, see box ‘2018 SoW reform’). If applicable under national law, make sure your reconciliation is externallyaudited every year too.
•Note that your internal self-assessments will be verified as part of the RJC audit every three years.

2018 SoW reform
In 2018, the WDC updated its SoW and adopted the SoW Guidelines4 as its latest system of industry self-regulation for
the whole diamond supply chain from rough to polished. The revised SoW now has an updated affirmative statement andreferences various international documents on universal standards on human rights, labour rights, anti-money launderingand anti-corruption practices.
A self-assessment tool is currently under development for use by adherents to the SoW. There is also a commitment torevise the guidelines after three years of using the self-assessment tool.
COP 29.3 is designed to align with the WDC SoW.
44

WDC, System of Warranties Guidelines (2018) www.worlddiamondcouncil.org/downloads/WDC%20SoW%20Guidelines.pdf

RJC Code of Practices Guidance 247

COP 29.4: Inform employees
Members shall ensure that all employees who buy or sell diamonds are well informed about trade association
resolutions and government restrictions prohibiting the trade in conflict diamonds.

Points to consider:• Your responsible manager should keep a list of all employees that buy or sell diamonds along with a record of when each one
was trained, and what training they received.
• All training should be appropriate to employees’ role and responsibilities and should include training on the procedures tofollow to ensure compliance with the KPCS and the SoW.

Check:■■Do you have a system in place to prevent you buying conflict diamonds?
■■Have all your employees that buy or sell diamonds been trained on the KPCS and SoW?
■■Do you have a system of controls to ensure that all diamonds in and out are accompanied by the correct warranty
statement and information? Do you check this through an annual self-assessment?

E Further information
Websites:
Diamond Development Initiative (DDI)
www.ddiglobal.org
European Union External Action, Sanctions Policy
https://eeas.europa.eu/topics/sanctions-policy_en
Global Witness, Conflict Diamonds
www.globalwitness.org/conflict-diamonds
IMPACT (formerly Partnership Africa Canada)
https://impacttransform.org
Jewelers of America [US]www.jewelers.org
Kimberley Process
www.kimberleyprocess.com
UN Security Council, Sanctions
www.un.org/securitycouncil/sanctions/information
US Department of the Treasury, Sanctions Program and Country Information
www.treasury.gov/resource-center/sanctions/Programs/Pages/Programs.aspx
World Diamond Council, Diamond Facts
www.diamondfacts.org

Publications:
IMPACT (formerly Partnership Africa Canada), A Guide to the Kimberley Process (2015)
https://impacttransform.org/wp-content/uploads/2018/03/A-Guide-to-the-Kimberley-Process-2015.pdf
UN General Assembly, The Role of Diamonds in Fuelling Conflict: Breaking the Link Between the Illicit Transaction of RoughDiamonds and Armed Conflict as a Contribution to Prevention and Settlement of Conflicts (2001)
https://undocs.org/en/A/RES/55/56
World Diamond Council, System of Warranties Guidelines (2018)https://www.worlddiamondcouncil.org/downloads/WDC%20SoW%20Guidelines.pdf

248 RJC Code of Practices Guidance(COP 30) Grading, analysis andappraisal
A Definitions and applicability
This provision applies to all members that generate independent reports on diamond grading, coloured gemstone analysis,
coloured gemstone place of origin, and/or appraisal.
An appraisal report is the commonly used industry term for a documented opinion of the monetary value of a jewellery item.
The opinion is based on the identity, composition, qualities and place of origin (where available) for coloured gemstones.
Appraising is generating an opinion of monetary value based on the identity, composition and qualities of a jewellery item.
A coloured gemstone analysis report identifies the species and variety of a coloured gemstone. The analysis states whether
the stone is natural or synthetic and provides other data to describe its shape, cut, weight, measurements, colour, transparency
and major characteristics.
Diamond grading is an activity to classify a diamond’s characteristics, in terms of cut, colour, clarity and carat weight. Diamond
grading can be carried out in independent laboratories or in-house. While a diamond can be weighed accurately and given an
exact carat value (for example, 1.17cts), the cut, colour and clarity of a diamond are classified and reported within a range. For
example, an E colour diamond is one that is better than F but worse than D; similarly, a VS1 clarity is better than VS2 but worse
than VVS2. Standards and methodologies for diamond grading, and information contained in grading reports or certificates,vary depending on the laboratory.
A diamond grading report is a report on the grading of a diamond’s physical characteristics against the laboratory’s grading
system, usually in terms of cut, colour, clarity and carat weight. If an opinion on monetary value is included in a diamond grading
report, it is also considered to be an appraisal report.
A place of origin report contains an opinion on the geographical origin (for example, country or region) of the coloured
gemstone(s).
Treatment analysis determines enhancements to coloured gemstones such as stone coating, heat treatment, diffusion
treatment, clarity enhancement and impregnation.

B Issue backgroundA diamond grading report or coloured gemstone analysis report normally includes the weight, colour, clarity and cut of an
unmounted stone. The report may also include a statement regarding whether the diamond or coloured gemstone has been
identified as natural and if it is treated or synthetic. Other information commonly found in reports includes the shape andmeasurements of the stone, its cut proportions and finish grade, its fluorescence, comments on any identification marks, andplace and date of issue.
A place of origin report for coloured gemstones usually gives an opinion on the geographic origin of the coloured gemstone(except in the case of full documented traceability). Place of origin can affect the value of a gemstone, where certain origins cancommand a greater market value. Determining place of origin for coloured gemstones can be a complex and often subjective
process and results may vary from one laboratory to the other, depending on the laboratory’s expertise, knowledge and accessto specialist equipment.
Appraising (or valuation) draws on the information generated by assaying and grading and assigns and documents a monetary
value to a jewellery item applicable to either a particular trading area or geographic region. Appraisers use guides, price lists
and expertise to identify a gemstone or piece of jewellery’s composition and qualities, and to put a cash value on it.
Grading, analysis and appraisal involves expert judgement and opinion. In some cases, they may be undertaken by persons
who are not independent (for example, some appraisers offer independent services while others may work in, or own, a retail
environment). This makes it essential for graders, analysts and appraisers to disclose any vested interest in the item they areassessing. For example, appraisals can be generated for insurance, probate or market assessment.
Retailers in the jewellery industry often provide appraisals for insurance purposes. Applicable law and industry guidelines
sometimes draw an important distinction between these appraisals (which are better described as ‘insurance replacement
cost estimates’) and appraisals carried out by experts in accordance with recognised professional standards such as theInternational Valuation Standards Council and the Uniform Standards of Professional Appraisal Practice.

RJC Code of Practices Guidance 249

C Key regulations, standards and initiatives
International standards
For diamond grading:
The International Diamond Council (IDC) (www.internationaldiamondcouncil.org) has established International Rules
for Grading Polished Diamonds,1 which were last updated in 2013. The IDC rules are recognised by the World Jewellery
Confederation (CIBJO) and have become the reference point for clear diamond terminology.
The International Organization for Standardization (ISO) ISO/IEC 17025:2017 standard2 sets out general requirements forthe competence to carry out tests and calibrations. It is used by laboratories to develop an effective management system for
quality, administrative and technical operations.
The CIBJO Gemmological Laboratories Book3 provides guidance for gemmological laboratories in developing their
management system for quality, administrative and technical operations.
The CIBJO Diamond Book4 is designed to help all those involved in buying or selling diamonds, treated diamonds, synthetic
diamonds and imitation diamonds to ensure the use of proper nomenclature.

For coloured gemstones:
The CIBJO Gemstone Book5 is designed to help all those involved in buying or selling coloured gemstones, treated gemstones,
synthetic gemstones and imitation gemstones to ensure the use of proper nomenclature.

For appraisal:
The International Valuation Standards Council (www.ivsc.org) develops technical and ethical standards for carrying out
valuations.
The Appraisal Foundation (www.appraisalfoundation.org) publishes the generally accepted standards of the valuation
profession in the United States through the Uniform Standards of Professional Appraisal Practice.

National law
Most countries have trading and consumer marketing laws that make it unlawful to wrongly describe any material aspect of agood, including jewellery products.
For example, in the United States, the Federal Trade Commission (FTC) Guides for the Jewelry, Precious Metals, and Pewter
Industries states: ‘It is unfair or deceptive to misrepresent the type, kind, grade, quality, quantity, metallic content, size, weight,
cut, color, character, treatment, substance, durability, serviceability, origin, price, value, preparation, production, manufacture,
distribution, or any other material aspect of an industry product.’6
In the European Union, the Misleading and Comparative Advertising Directive7 aims to protect traders against misleading
advertising, meaning any advertising which, in any way, either in its wording or presentation:• deceives or is likely to deceive the persons to whom it is addressed or whom it reaches;• by reason of its deceptive nature, is likely to affect their economic behaviour; or• for those reasons, are likely to injure a competitor.
RJC members are expected to be aware of applicable law in all jurisdictions in which they operate.

D Implementation guidance
As a starting point, use your approach to COP 1 Legal compliance to identify applicable law and any potential breaches of
relevant international standards and regulatory requirements for grading and appraising.

1

IDC, IDC-Rules for Grading Polished Diamonds (2013)www.internationaldiamondcouncil.org/sites/default/files/downloads/IDC-Rules%20Version%202013%20%28July%29.pdf

2

ISO, ISO/IEC 17025:2017General Requirements for the Competence of Testing and Calibration Laboratories(2017) www.iso.org/standard/66912.html

3

CIBJO, The Gemmological Laboratories Bookwww.cibjo.org/introduction-to-the-blue-books

4

CIBJO, The Diamond Bookwww.cibjo.org/introduction-to-the-blue-books

5

CIBJO, The Gemstone Bookwww.cibjo.org/introduction-to-the-blue-books

6

FTC, Part 23—Guides for the Jewellery, Precious Metals, and Pewter Industries:§23.1 Deception (general)(2018)www.ecfr.gov/cgi-bin/retrieveECFR?gp=1&SID=e97e0a75f44266a15194edce9a243386&ty=HTML&h=L&mc=true&r=PART&n=pt16.1.23

7European Commission, Misleading and Comparative Advertising Directive
https://ec.europa.eu/info/law/law-topic/consumers/unfair-commercial-practices-law/misleading-and-comparative-advertising-directive_en

250 RJC Code of Practices GuidanceCOP 30.1: Systems to ensure consistency
Members that generate independent reports on grading, analysis and appraisal shall have systems in place, based on
scientific methodology, that are sufficiently thorough and comprehensive to produce valid and reproducible results.

Points to consider:• Establish documented systems and procedures to ensure you can maintain a consistent approach to grading, analysis and/or
appraisal. These should:•

be based on scientific methodology and, where applicable, appropriate verifiable standards; and•include a quality control process to ensure results are consistent with the applied standards.

• Note that you will have to show that these systems and procedures are in place during your RJC audit.
• The COP does not aim to provide detailed standards for appraisers of jewellery products. If you generate independent
appraisal reports, do so in accordance with applicable law and professional standards. Most jurisdictions where RJC
members operate have national professional organisations that provide codes of conduct and minimum standards forappraisal or valuation service provision.

COP 30.2: Detection of synthetics or treatments
Members that generate independent diamond grading and/or coloured gemstone analysis reports shall identify
whether detection of synthetics and/or any treatments are part of the assessment and whether this has been carriedout for all stones.

Points to consider:• Diamond grading and coloured gemstone analysis reports generally identify stones as natural, treated or synthetic. But thisis not always the case, for example if laboratories only test the most valuable stones or only test on request.
• If you generate independent diamond grading reports or coloured gemstone analysis reports, put systems in place to ensure
proper disclosure. In particular, your reports and analyses should:•

explain whether or not your assessment includes the detection of synthetic or treated diamonds or coloured gemstones;•

state whether testing has been carried out on all diamonds/coloured gemstones covered by the report, or only on a sampleof them; and•specify whether or not the detection of treatments on coloured stones included detection of heating (to align withrequirements of COP 28 Product disclosure).

COP 30.3: Place of origin determination
Members that generate independent place of origin reports for coloured gemstones shall have systems in place, basedon scientific methodology, to ensure consistency of the determination of origin. They shall also carry out detection oftreatments and synthetics as part of the determination.

Points to consider:• Clearly state on your place of origin report that the determination is based on your opinion at the time the report was
prepared.
• Establish internal documented systems and procedures to ensure consistency in how you determine place of origin. Thesesystems should be based on scientific methodology that is thorough and comprehensive enough to support your origin
determination and produce results that can be reproduced. They should also include information on:•

the methods and techniques used to determine the origin of coloured gemstones (for example, optical properties, inclusion
features, chemical and spectral fingerprinting, etc.); and•the relevant reference samples or datasets used (to compare the properties of the unknown gemstone with those ofsamples with a known origin).

• Note that you will have to show these systems are in place during your RJC audit.
• Make sure any report on place of origin also includes the results of tests carried out to identify whether the gemstones aresynthetic and/or have undergone any treatments.

RJC Code of Practices Guidance 251

Demonstrating place of origin determination
The origin of gemstones can be understood in terms of geological setting, in a geographical location. An origin written on agemstone report is an opinion, based on the present knowledge of a laboratory gemmologist.
Using a consensus approach to reach a conclusion is not unusual. For example, if two employees in a laboratory haveslightly different views, they will typically ask a third for their opinion and go with the majority. This is nothing more thanan educated guess or a consensus of educated guesses. The conclusions on place of origin for a specific stone may varyfrom laboratory to laboratory, or even within a single laboratory over time. Gemstone reports should distinguish between
objective facts and the subjective interpretations derived from them. They should also provide an overview of the range of
observations or tests that were significant in reaching their conclusions, worded in a way to show broadly how confident
the laboratory is in its opinion.
Reports should clearly describe the conclusions on place of origin as opinion and briefly explain the nature of theobservations and analyses on which their conclusions are based, where possible including relevant photomicrographs,
analyses or statistical information.
Source:• The Gemmological Association of Great Britain (Gem-A), Investigating the Opinion of Laboratory Reports andGeographic Origin of Gemstones
https://gem-a.com/news-publications/media-centre/news-blogs/journal-digests/journal/laboratory-reports-andgeographic-origin-of-gemstones

COP 30.4: Purpose of appraisal report
Members that generate independent reports for end consumers with an opinion on monetary value shall include thename of the consumer to whom the report is given and a statement of the purpose of the appraisal.

Points to consider:• Reports with opinion on the monetary value of jewellery items are commonly called appraisal reports by industry (thoughsome trade members may use the term ‘appraisal’ to mean an assessment of the quality or condition of the item). Be clear
whether your report includes an opinion on monetary value or not.
• If you generate independent appraisal (or valuation) reports for end consumers, include the name of the consumer to whom
the report is given and a statement of the purpose of the appraisal or valuation.
• If you generate independent reports, or gemmological laboratory reports, you do not have to disclose your client’s name.
• Make sure every report is signed by the appraiser.

COP 30.5: Disclosure of any vested interest
Members that offer directly to end consumers diamond grading reports, coloured gemstone analysis and/or place oforigin reports, or appraisal reports that might reasonably be construed to be independent shall disclose any relevant
vested interests held by the grader, analyst or appraiser in the sale of the jewellery product.

Points to consider:• This provision applies to circumstances where consumers are offered a diamond grading report, coloured gemstone analysis
report or appraisal report as part of the sale of a jewellery product.
• Establish policies and procedures to ensure proper disclosure of vested interests in the relevant report.
• You will have a vested interest in a product if the content of your report gives you any opportunity for direct or indirectcommercial or financial gain. For example, if you have generated the report rather than an independent third party, you must
disclose this to the end consumer.

COP 30.6: Misleading consumers
Members shall not mislead end consumers.

252 RJC Code of Practices GuidancePoints to consider:• Members engaged in selling diamonds, coloured gemstones, synthetic diamonds/coloured gemstones, gold, silver and/or
platinum group metals jewellery products must not represent any appraisal documentation that has been prepared by themember itself as ‘independent’. It should be readily apparent to the customer that the member prepared such documentation, if
that is the case, for example by ensuring that the member’s name is printed on the appraisal documentation.
• If you use independent appraisal reports when selling any material in RJC scope:•

Put systems in place to ensure you comply with applicable law on misleading representations and deceptive marketing
practices.

•

If the sale price is less than the independent appraisal, explain the reason for the difference to your consumer, in writing, inthe sales documentation.

• Any reference made to the possible future value of stones in appraisal reports must clearly emphasise the uncertainty
associated with such estimates and also include the actual valuation based on current market conditions.
• When preparing an appraisal report on monetary value, if appropriate, include the trading area or geographic region towhich the value assigned applies.

Check:■■If you generate independent diamond grading reports, or coloured gemstone analysis, treatment or place of origin reports,
do you include an explanation of whether or not the assessment includes the detection of synthetics and/or treatments?

■■If you generate independent reports with opinion on monetary value for end consumers, do you identify the consumer
for whom the report is prepared and the purpose of the appraisal in your reports?

■■If you generate diamond grading reports, coloured gemstone analysis reports or appraisal reports for end consumers

that might be construed as independent, and you actually have a vested interest in the sale of the product(s), this must be
disclosed.

■■If you generate place of origin reports for coloured gemstones, do you have a system to ensure consistency in how thisis determined?

E Further information
Websites:
The Appraisal Foundationwww.appraisalfoundation.org
European Commission, Misleading and Comparative Advertising Directive
https://ec.europa.eu/info/law/law-topic/consumers/unfair-commercial-practices-law/misleading-and-comparativeadvertising-directive_en
Government of Canada, Competition Bureau Canada
www.competitionbureau.gc.ca/eic/site/cb-bc.nsf/eng/home
International Society of Appraisers (ISA)
www.isa-appraisers.org
International Valuation Standards Council
www.ivsc.org
Jewelers of America [US]www.jewelers.org

Publications:
The Appraisal Foundation, 2016–2017 Uniform Standards of Professional Appraisal Practice (2016)www.appraisertom.com/2016-17-eUSPAP+(Final)-bookmarks-retail.pdf
CIBJO, Blue Books
www.cibjo.org/introduction-to-the-blue-books/
FTC, Guides for the Jewelry, Precious Metals, and Pewter Industries (2018)www.ecfr.gov/cgi-bin/
retrieveECFR?gp=1&SID=b1f571384aebe1aa8d885e767f121227&ty=HTML&h=L&mc=true&r=PART&n=pt16.1.23
RJC Code of Practices Guidance 253

Responsible
mining

(COP 31) Extractive Industries
Transparency Initiative
A Definitions and applicability
This provision applies to all RJC members in the mining sector.
The Extractive Industries Transparency Initiative (EITI) is the global standard to promote the open and accountable
management of oil, gas and mineral resources.
Source:• Extractive Industries Transparency Initiative
https://eiti.org

B Issue backgroundA country’s natural resources, including metals and minerals, ultimately belong to its citizens. Mining companies that extract
these resources pay revenues in the form of taxes, royalties, signature bonuses and various other payments. It is up to
governments to ensure that these revenues benefit their citizens and lead to economic growth and social development. Poor
governance can undermine this process and lead to corruption and conflict.
More openness and public scrutiny of how resource revenues are used and managed can help improve transparency andaccountability in the extractives sector and ensure that natural resources benefit all. It is on this understanding that theExtractive Industries Transparency Initiative (EITI) was built. A multi-stakeholder initiative comprising governments,
companies, civil society groups, investors and international organisations, the EITI sets a global standard for companies topublish what they pay to governments and for governments to disclose what they receive.
The basic concept is straightforward: in every EITI implementing country, mining companies declare the payments they maketo the government – either individually or aggregated by an independent third party. Once audited to international standards,
these figures are then available for comparison against the government’s own separate declaration of the revenues it received.
This two-pronged process of independent validation is the strength of the EITI, and makes its findings more reliable than onesided reporting of company data or government data alone.

C Key regulations, standards and initiatives
The EITI (https://eiti.org) aims to promote the open and accountable management of oil, gas and mineral resources throughrevenue disclosure. The initiative was first announced at the World Summit on Sustainable Development in Johannesburg,
September 2002. In 2008, a method for implementing it was agreed and in 2013 the current EITI standard, which is based on athree-step process, emerged (see Figure 31.1).

RJC Code of Practices Guidance 255

1

2

3

DecideDisclose

DebateA national multistakeholder group(MSG) of government,
industry and civil society
decide how the EITI
process should work intheir country.

Companies and countries
report information about:

The MSG disseminate
ﬁndings to inform publicdebate and follow up
recommendations for
improving sector
governance.

» Contracts and licences» Production» Revenue collection» Revenue allocation» Social and economic
contribution

Figure 31.1. Implementing the EITI standard follows a three-step process
Last updated in 2016, the EITI is a voluntary initiative implemented by countries whose governments sign up to do so. Today,
there are around 51 EITI implementing countries.1 To become EITI compliant, countries must start an EITI validation within 18
months of joining the initiative, and then continue to be validated at least every three years.
While it is up to governments to implement the EITI, mining businesses can formally support the initiative by becoming an
EITI supporting company. This involves publicly declaring their support for the EITI Principles,2 submitting the EITI Supporting
Company Form,3 making an annual financial contribution to the EITI’s international management4 and living up to a set of
expectations for promoting the EITI nationally and globally.5
Beyond the EITI, transparency of mineral revenues is also addressed in the Global Reporting Initiative (GRI) G4 Sustainability
Reporting Guidelines (https://www2.globalreporting.org/standards/g4/Pages/default.aspx), which require disclosure on
payments to government (see COP 3 Reporting).

D Implementation guidance
COP 31.1: Supporting transparency in EITI countries
Members in the mining sector shall support the implementation of the Extractive Industries Transparency Initiative(EITI) in EITI implementing countries.

Points to consider:• Find out if any of your operations are in EITI implementing countries (see https://eiti.org/countries).
• Establish a policy or management system for fulfilling the requirements of COP 31 and make it publicly available, forexample through your company website.
• Make a senior manager responsible for implementing the policy.

1

EITI, Implementation Status https://eiti.org/countries

2

EITI, The EITI Principles https://eiti.org/document/eiti-principles

3

EITI, EITI Supporting Company Form https://eiti.org/files/document/eiti-supporting-company-form

4

Note that members of the International Council on Mining and Metals (ICMM) engage and support the EITI through ICMM.

5

EITI, Expectations for EITI Supporting Countries (2018) https://eiti.org/document/expectations-for-eiti-supporting-companies

256 RJC Code of Practices Guidance• Make sure that all staff involved with external affairs, political risk analysis, public reporting and government revenues bothunderstand their roles and responsibilities in implementing the policy, and are suitably equipped for the task. This includes
providing staff with:•

tailored training on key topics; and•regular communication on how the country is implementing the EITI.

• For every business or operation that you have in an EITI implementing country:•

Make a senior manager responsible for disclosing payments to governments and co-operating with the EITI validation
process. This will be your lead contact for the EITI at the country level.

•

Disclose all material payments in the form of taxes, royalties, signature bonuses or any other payment or benefit togovernments. Adhere to any applicable reporting templates and country workplans and make sure the data you submit isbased on company financial statements that have already been audited to international standards. (See the EITI Business
Guide6 for more information on EITI reporting requirements.)•

Note that the EITI does not only apply to mining: any company that is actively exploring or conducting other preproduction operations must disclose all material payments it makes to the government in EITI implementing countries.

COP 31.2: Supporting transparency everywhere
In all countries, members shall:a. Promote transparency throughout the mining industry, helping public debate and providing opportunities for sustainable
development.
b. As a guiding principle, aim to publicly disclose taxes and payments in all countries of operation. Where companies choose
not to, they should state why not.
c. Aim to publicly disclose beneficial owners.
d. Engage in rigorous procurement processes, including due diligence in respect to partners and vendors.
e. Support countries to put into practice their decisions to disclose future licences and contracts.
f. Work with governments to deliver natural resources in a way that benefits societies and communities.
g. Ensure that company processes are appropriate to deliver the data required for high standards of accountability.

Points to consider:• In every country that you operate, you should implement the requirements of COP31.2 in ways appropriate to youroperation and the host country.
• These requirements are directly aligned with the expectations for EITI supporting companies(https://eiti.org/document/expectations-for-eiti-supporting-companies) and focus on supporting the mining industry’s
contribution to sustainable development and transparency. Specifically, they call on companies to:•

Publicly declare support for the principles articulated in the EITI Principles and encourage public debate and awarenessbuilding.

•

Aim to publicly disclose taxes and payments on an annual basis. This can be done in a stand-alone report or as part ofyour annual reporting (see COP 3 Reporting). Either way, it should align with GRI requirements to disclose specific taxes(including corporate, income, property) and related penalties paid locally, nationally and internationally. If you cannot
disclose all payments in your countries of operation, make sure you explain why.

•

Take steps to identify the beneficial owners of your direct business partners (including joint ventures and contractors) inalignment with COP 12 (Know Your Counterparty: money laundering and finance of terrorism). Aim to publicly disclose
this information unless doing so goes against applicable law. If you are a listed company, remember to adhere to applicableregulations and listing requirements.

•

Make sure you have the processes in place for documenting the above information.

• Consider becoming an EITI supporting company. The benefits of doing so centre on mitigating political and reputationalrisks: transparent payments can help prevent conflict around mining activities and demonstrate the contribution that mining
investment makes to a country. They can also lead to enhanced relations with stakeholders and local communities andbetter-informed discussions about the role of mining.

6

EITI, EITI Business Guide (2013) https://eiti.org/document/eiti-business-guide

RJC Code of Practices Guidance 257

Check:■■Are you applying the principles, approaches and actions articulated in the expectations for EITI supporting companies?
■■Have you made a senior manager responsible for supporting the EITI and have you assigned lead contacts at thecountry level in EITI implementing countries?

■■Are systems in place to ensure all payments made to participating governments are disclosed in accordance withapplicable reporting templates and country workplans?

E Further information
Websites:
Extractive Industries Transparency Initiative (EITI)
www.eiti.org
Global Reporting Initiative (GRI), G4 Sustainability Reporting Guidelines
https://www2.globalreporting.org/standards/g4/Pages/default.aspx
Publish What You Pay
www.publishwhatyoupay.org
Transparency International
www.transparency.org

Publications:
EITI, Advancing the EITI in the Mining Sector (2009)www.eiti.org/document/mining
EITI, Business Guide: How Companies Can Support Implementation (2013)https://eiti.org/sites/default/files/documents/business-guide-may-2013.pdf
EITI, The EITI Standard 2016 (2016)
https://eiti.org/sites/default/files/documents/the_eiti_standard_2016_-_english.pdf
EITI, Expectations for EITI Supporting Companies (2018)https://eiti.org/document/expectations-for-eiti-supporting-companies
International Council on Mining and Metals, EITI
www.icmm.com/en-gb/society-and-the-economy/governance-and-transparency/eiti
International Monetary Fund, Code of Good Practices on Fiscal Transparency (2007)
www.imf.org/external/np/pp/2007/eng/051507c.pdf

258 RJC Code of Practices Guidance(COP 32) Stakeholder engagement
A Definitions and applicability
This provision applies to all members in the mining sector.
Active communication means using appropriate methods and frequency for relaying information that enable the receptor toeffectively understand and act on the information..
A community is a group of people that share the same geographical space or have a common interest that brings them
together. Community members generally share some beliefs and values. For the purposes of this guidance, a community is anygroup of people that may experience positive or negative effects from an RJC member’s operations.
Community development is a way of working, underpinned by a commitment to equity, social justice, participation andempowerment, that enables people to identify common concerns and that supports them in taking action related to them.
The mining lifecycle is the series of phases over the course of a mining project, going from exploration, feasibility studies andconstruction through production to mine closure, rehabilitation and post-closure.
A stakeholder is a person who can affect, or be affected by, the outcome of a mining project. Stakeholders can be individuals,
interest groups, government agencies or corporate organisations. They may include community groups, politicians, commercial
and industrial enterprises, labour unions, academics, religious groups, national or international social and environmentalgroups, public sector agencies and the media.
Stakeholder and community engagement is a two-way process of information sharing and decision-making that aims tosimultaneously address stakeholder issues and priorities (including the needs of disadvantaged and vulnerable groups) as
well as the concerns and needs of the business. It is carried out in a manner that is inclusive and culturally sensitive: beyond
listening, the aim of engagement is to ensure mutual understanding and responsiveness by all parties to enable them to discussand manage matters with the potential to affect all concerned. Successful engagement requires a robust framework for regular
discussion, consultation and interaction.
Vulnerable groups are characterised by their higher risk and reduced ability to cope with shock or negative impacts. Theirvulnerability may be based on socio-economic condition, gender, age, disability, ethnicity or other criteria that influencepeople’s ability to access resources and development opportunities. It is always specific to the particular location and time.
Source:• International Council on Mining and Metals (ICMM), Community Development Toolkit (2012)www.icmm.com/website/publications/pdfs/social-and-economic-development/4080.pdf

B Issue background
Effective stakeholder engagement is crucial to securing a ‘social licence to operate’ and ensuring sustainable, positive
development in project-impacted areas. From governments to industry to civil society, a broad range of stakeholders expect
to be able to participate in a dialogue about the risks, impacts and benefits of mining. And the potential benefits of successfully
engaging these groups are high. They can include greater awareness and trust, reduced negotiating time, a better corporaterisk profile, improved security, secure rights and rule of law, protection of mining investments, and potentially access to capitalon more favourable terms.
In this way, investment in stakeholder engagement and community development can be viewed through the lens of risk
and opportunity. But it is increasingly better viewed as a means of creating ‘shared value’ by aligning business goals andcompetencies with the concerns and development priorities of local stakeholders and communities.
Either way, stakeholder engagement is not about public relations or marketing, but about including key stakeholders andkeeping local communities informed and involved, ultimately giving them an effective voice in the decisions that affect them.
From information sharing and consultation to active involvement in decision-making processes, stakeholder engagement
covers various participation options across a continuum of increasing involvement (see Figure 32.1).

RJC Code of Practices Guidance 259

Empowerment
Collaboration
Involvement
Community
advisorymeetings

Consultation
Workshops

Information
sharing

Citizens juries

Deliberative
polling

Consensusbuilding
processes

Ballots
Delegateddecisionmaking

Focus groups
Surveys
Public meetings

Fact sheets
Websites
Open days

Figure 32.1. Continuum of stakeholder engagement
Multiple approaches can be taken as part of the overall stakeholder engagement. To be effective, the combination of
approaches must be inclusive and respectful and allow for the consideration of communities and other stakeholders’ interestsand objectives throughout the full mining lifecycle (see box ‘Effective engagement’). These should be used both to inform andshape the mining project decisions that might affect stakeholders (such as those related to water use or land-use changes) as
well as for creating community development benefits (for example, through local procurement).

Effective engagement
An effective stakeholder engagement process:• is clearly scoped, influential and connected to decision-making;• is simple, accessible and open;• is inclusive, respectful and values the contributions of all;• is informative, educational and contributes to continuous improvement;• has clear and reasonable timeframes;• builds relationships, collaboration and trust;• provides feedback and accountability; and• is regularly reviewed and evaluated.
Source:• Next Generation, How Stakeholder Engagement Improves Community Development Projects and Programmes

Stakeholder engagement can be a complex and challenging exercise, depending on the diversity of stakeholders and extent
of conflicting perspectives. It works best between parties with an established relationship based on trust and mutual respect.
For an exploration or mining company, the process of building those relationships needs to begin long before construction ofa mine starts. That makes having the systems and processes in place for early engagement—including things like stakeholder
mapping, dedicated staff and regular review—a priority. Once positive relationships are formed, they need to be nurtured andmaintained to minimise misunderstandings and ensure continued inclusiveness as new stakeholders emerge.

260 RJC Code of Practices GuidanceAn effective, rights-compatible complaints and grievance mechanism is an essential tool in any company’s approach to ongoingstakeholder engagement. Such a mechanism provides a channel for individuals and communities affected by a company’s
activities to raise concerns early, openly, on an informed basis, with due protection and in an atmosphere of respect for humanrights. Having a good complaint and grievance mechanism can help stop disputes from escalating and facilitate a quicker
resolution to problems. By enabling learning and enhancing relationships, it can also help prevent new disputes from emerging.
To work effectively, an operational level complaints and grievance mechanism should encourage early resolution of issues atthe local level wherever possible. The RJC COP requirements apply to mechanisms that a company can credibly establish,
ideally in co-operation with key stakeholders.1 This kind of complaints and grievance mechanism should not stop stakeholders
from being able to access other mechanisms, including judicial systems (through the courts), public administrative systems(through government, quasi-governmental or independent statutory agencies), traditional or local dispute processes, andprivate non-judicial mechanisms. Rather, a company mechanism exists within a wider understanding of these vehicles forraising, resolving and remedying disputes.
For new mining projects or significant activities, stakeholder engagement is required in order to seek broad community
support (for example, an agreement between the company and community, or expressions of support during community
dialogue). Most communities are complex and dynamic, and broad community support may exist even if some individuals orgroups object to the mining project.
If a company fails to obtain broad support, it can decide not to proceed with developments or exploration even if this is legallypermitted. Where projects affect indigenous peoples, see COP 33 Indigenous peoples and free, prior and informed consent.

C Key regulations, standards and initiatives
International initiatives
In 2012, the International Council on Mining and Metals (ICMM) launched an updated Community Development Toolkit.2
The toolkit includes 20 tools aimed at fostering constructive relationships among communities, companies and governments.
The ICMM Mining: Partnerships for Development Toolkit3 provides another resource for national and regional partners tosystematically and objectively quantify and agree ways to enhance mining’s economic and social contribution.
The Prospectors and Developers Association of Canada’s (PDAC’s) e3Plus: A Framework for Responsible Exploration4
is designed to support exploration companies in continuously improving their social, environmental and health and safety
performance. The framework includes guidance on community engagement and an accompanying toolkit that aims to reduce
the risk of conflict at the community level.
The International Finance Corporation (IFC) Environmental and Social Performance Standards (‘IFC Performance Standards’,
www.ifc.org/performancestandards) define IFC clients’ responsibilities for managing environmental and social risks. A global
benchmark on good practice, these comprise eight standards, including:• Performance Standard 1: Assessment and Management of Environmental and Social Risks and Impacts, which includes
guidance on community and stakeholder engagement. This covers a broad scope of topics such as stakeholder analysis
and engagement planning, disclosure of information, consultation, informed consultation and participation, private sector
responsibilities under government-led stakeholder engagement, external communications and grievance mechanisms, aswell as ongoing reporting to affected communities.
The IFC Performance Standards are embedded in the Equator Principles (http://equator-principles.com); see COP 24
Environmental management for more information.
The UN Guiding Principles on Business and Human Rights5 are the primary reference for the private sector’s responsibility torespect human rights and include effectiveness criteria for rights-compatible grievance mechanisms (see COP 6 Human rights).

National law
Stakeholder engagement is in most cases a voluntary but essential business activity and an accepted element of good industry
practice. Some countries may have regulatory requirements around engaging with project-affected people and disclosing project
documentation to stakeholders as part of development approvals for new or expanding industrial projects and for closure planning.
RJC members are expected to be aware of applicable law in all jurisdictions of operation.

1

This does not include adjudicative processes (judicial or non-judicial), which should be situated at least one step away from all parties, including the company.

2

ICMM, Community Development Toolkit (2012) www.icmm.com/en-gb/publications/mining-and-communities/community-development-toolkit

3

ICMM, Mining: Partnerships for Development Toolkit (2011) www.icmm.com/mpd

4PDAC, e3Plus: A Framework for Responsible Exploration www.pdac.ca/priorities/responsible-exploration/e3-plus

5

UN Human Rights, Guiding Principles on Business and Human Rights (2011) www.ohchr.org/Documents/Publications/GuidingPrinciplesBusinessHR_EN.pdf

RJC Code of Practices Guidance 261

D Implementation guidance
Through the mining lifecycle you will need to engage a diverse range of stakeholders for a diverse range of purposes, from risk
management, procurement and emergency preparedness to community development and much more.

COP 32.1: Affected communities
Members in the mining sector shall carry out stakeholder engagement. The engagement shall be used to identify
community development priorities and support activities that contribute to lasting social and economic well-being.
This includes considering the interests of affected communities in key mining decisions in the mining lifecycle andseeking broad community support for proposals.

Points to consider:• Your stakeholder engagement should form the backbone of your involvement in community development programmes (seebox ‘Stakeholder engagement for community development’). Use it to inform how you maximise the positive social, economicand environmental impacts of your project on affected communities and avoid and minimise the negative ones.
• At certain key decision-making points in a mining lifecycle (for example, locating and designing waste sites or significantly
changing infrastructure) you will need to focus your stakeholder engagement specifically on the related impacts andopportunities.

Stakeholder engagement for community development
A stakeholder-based approach to community development includes:• building an understanding of the local context and stakeholder groups;• building relationships based on trust and transparency;• ensuring consistency in stakeholder engagement and communication;• managing stakeholder expectations through a graduated, phased and appropriate engagement approach;• establishing an early, accessible and responsive grievance mechanism;• seeking ‘win-win’ scenarios for the company and stakeholder groups;• avoiding and mitigating social risks; and• maximising opportunities to create and protect value for the project and local communities.
Source:• Next Generation, How Stakeholder Engagement Improves Community Development Projects and Programmes• As outlined in IFC Performance Standard 1, you must carry out an informed consultation and participation process withaffected communities. This is to ensure that their perspectives on the matters that affect them directly (such as yourproposed mitigation measures, approach to benefit-sharing and implementation issues) are incorporated into your decisionmaking.
• Make local development priorities and needs part of an ongoing dialogue with affected communities (see also COP 10
Community development):•Set development priorities through community engagement rather than relying only on external assessment.

•

Develop priorities in partnership programmes to the extent possible.

•

Review development priorities regularly over the mining lifecycle as stakeholders, and their priorities and needs, will
evolve over time.

• To help you gain broad-based community support for your project, you may want to:•Provide comprehensive information on proposed activities, including potential negative impacts and positive
opportunities.

•

Help provide access to reliable independent advice.

•

Respect social values, carrying out consultations in good faith to develop mutually informed understanding of interests
and activities.

•

Actively support local economic opportunity and development.

262 RJC Code of Practices GuidanceCOP 32.2: Engagement systems
Members in the mining sector shall have systems for early and ongoing engagement with affected communities andother relevant stakeholders. These systems shall:a. Draw on appropriate skills, resources and suitably experienced personnel.
b. Apply throughout the mining lifecycle.
c. Identify affected communities and the full diversity of relevant stakeholders including disadvantaged and vulnerable
groups in relation to project risks, impacts and phase of development, and ensure these are effectively and meaningfully
represented throughout the mining lifecycle.
d. Establish effective communication channels to disseminate relevant project information and receive feedback in an
inclusive, equitable, culturally appropriate and rights-compatible way.

Points to consider:• Make a senior management function responsible for stakeholder engagement. Draw on experienced and expert assistance todevelop the necessary policies, training, strategies, plans and actions to implement effective stakeholder engagement.
• Establish your stakeholder engagement systems before you start mining.
•

Note that this does not apply retrospectively for new members and new projects, though in these cases stakeholder
engagement systems should be developed immediately.

• You must consider the full range of stakeholders in your approach. This includes engaging affected communities such as
employees, unions or workers’ organisations, women, youth, the elderly, artisanal and small-scale miners, indigenous peoples
and vulnerable groups. But it also includes engaging other relevant stakeholders such as:•

local and national government (not just the ministry responsible for mining permits but also the ministries forenvironment, labour, education, development and others as appropriate);•other companies, industries and groups from the same landscape;•local, national and international civil society;•non-governmental organisations (NGOs);•

the media;•

industry associations; and•others.

• As outlined under COP 10 Community development, a first step is to undertake a mapping exercise to understand who yourstakeholders are and assess current engagement and dispute resolution strategies.
•

Stakeholders change over time, so you may need to redo your mapping exercise periodically throughout the mining
lifecycle.

Plans, policies and procedures• Outline the aims of your stakeholder engagement programme, along with the key principles to be followed, and the
expectations of staff, communities and other stakeholders.
•Consider how expectations and outcomes of stakeholder engagement approaches can be managed.

• Develop a stakeholder engagement plan and ensure that all stakeholder interactions are documented on an ongoing basis.
• Make your plan as inclusive, equitable, culturally appropriate and rights-compatible as possible (see Figure 32.2).

RJC Code of Practices Guidance 263

Stakeholder engagement

Inclusive

Equitable

Engage beyond
community
representatives andleaders, making surethat women, youth andvulnerable groups canparticipate.

Be aware of power
imbalances and try
to mitigate these.
Be sensitive to thepotential for intracommunity conﬂict.

Culturally
appropriate

Rightscompatible

Consider issues suchas authority structures,
language and genderand make sure yourengagement approach
is appropriate to the
local context.

Use approaches that
respect and support
human rights.

Figure 32.2. Four aspects of stakeholder engagement to consider when deciding which approach to take

• Make sure your engagement plan includes information disclosure and external reporting to all stakeholders as appropriate,
as well as ongoing reporting to affected communities.
• If your stakeholders include indigenous peoples, think about how to embed culturally appropriate approaches into yourengagement plan. Note that effective approaches will vary across stakeholders and social contexts: what works with one
group may not be appropriate in another. (Also see guidance for COP 33 Indigenous peoples and free, prior and informed
consent).
• Monitor the progress of your engagement plan (including approaches, grievance mechanisms, development projects andpartnerships) and evaluate impacts in collaboration with key stakeholders, including disadvantaged and vulnerable groups.
• Seek to continually improve plans, policies and procedures based on evaluation outcomes.

Skills and resources• Good stakeholder engagement depends on having people with suitable skills and understanding to run effective
programmes. Assess the resource requirements for your stakeholder and community engagement programme to ensure
staff and external experts can carry out their roles effectively.
• Consider what training might be needed, for example on cultural awareness and gender, engagement processes andpractices, dispute resolution and communication.
• In some cases, you may need to draw on external expertise, for example when dealing with indigenous peoples, resettlement
or artisanal mining.
• You may also require extra support at different stages of the mining lifecycle, for example during an environmental and social
impact assessment or during closure planning.
• In some situations, to ensure informed consultation, you may need to engage support organisations such as local NGOs orcapacity-building groups to help affected communities understand their rights.

264 RJC Code of Practices GuidanceSmall mining companies and exploration
Stakeholder engagement (and community development) can be a challenge for smaller mining companies,
particularly those involved in exploration and development. But it remains critical: poor engagement can lead to early
miscommunications or inappropriate activities or commitments, which can result in confusion, unrealistic expectations
and possible conflict later on. These circumstances create unnecessary costs for all stakeholders.
If you are a small company then, before starting field activities take care to gather relevant information about local
conditions and make sure your project team has the information, direction and capacity to engage effectively with local
communities and other stakeholders.
The PDAC’s guide to community engagement is designed for explorers and offers good guidance for small companies on
how to build strong and positive company–community relationships at the site level:
PDAC, First Engagement: A Field Guide for Explorers (2015)
www.pdac.ca/priorities/responsible-exploration/e3-plus/community-engagement-guide/introduction

COP 32.3: Access to rights-compatible complaints and grievance mechanisms
Members in the mining sector shall ensure that affected communities have access to a rights-compatible complaints
and grievance mechanism at the operational level for raising and resolving disputes, and shall actively communicate
its availability to affected communities. The grievance mechanism shall be easily accessible, easily understood andtransparent. Grievances shall be addressed within clear timelines, and records shall be kept of grievances raised,
investigation processes completed and outcomes.

Points to consider:• Your grievance mechanism should be the same one as (or closely aligned with) the one used to meet RJC requirements for
COP 6 Human rights and COP 7 Due diligence for responsible sourcing from conflict-affected and high-risk areas. All the
points to consider under COP 7 (about accessibility, transparency, record-keeping and time-bound actions) apply here.
•

Note that your grievance mechanism for external stakeholders is not the same as your internal procedures for workers
to raise grievances, which may require a different approach not least because employee information may only be legally
accessed by human resources (see COP 18 Harassment, discipline, grievance procedures and non-retaliation).

• Wherever possible, establish a complaints and grievance mechanism before any disputes arise, not in reaction to theiroccurrence.
• Ensure that grievances can be received through appropriate context-relevant channels (by telephone, email, face-to-face, via
community representatives, etc.):•

If they are received by other departments or project personnel, ensure they are passed to the relevant person or team toenable them to be addressed.

• When designing your grievance mechanism:•

Consider using an external service provider to manage your grievance mechanism so that complaints can be presented to
you anonymously. This may help encourage concerns to be raised by legitimate stakeholders who may otherwise remainsilent in some circumstances.

•

You may need to consider funding for additional resources required when handling some grievances, for example toaddress gender issues or to enable access to independent advice or mediation.

• Analyse the frequency, patterns and causes of complaints and grievances frequently to identify where and how your policies,
procedures or practices can be improved.
• Relationships between mine sites and stakeholders endure after a mine changes ownership and when a mine closes down.
Make the continuation of a complaints and grievance mechanism an integral part of both handover planning and closureplanning.

RJC Code of Practices Guidance 265

Check:■■Do you have a comprehensive system for early and ongoing stakeholder engagement, including clear lines of
responsibility, appropriate skills and resources, and policies and procedures?

■■Are your approaches for engagement inclusive, equitable and culturally appropriate?
■■Have relevant stakeholders been identified in relation to project risks, impacts and opportunities?
■■Are effective engagement measures in place to disseminate relevant project information and receive feedback?
■■Do you consider, through informed consultation, the interests and development aspirations of affected communities inkey mining decisions?

■■Is a rights-compatible complaints and grievance mechanism in place for all operations, are stakeholders aware of how to
use it and how it works, and are appropriate records kept?

E Further information
Websites:AccountAbility
www.accountability.org
Anglo American, Community Engagement
www.angloamerican.com/development/social/community-engagement/engagement
Anglo American, Speak Up Program—Independent Grievance Mechanism
www.anglospeakup.com
International Association of Public Participation (IAP2)
www.iap2.org
PDAC, e3 Plus: A Framework for Responsible Explorationwww.pdac.ca/e3plus
World Bank, Community Driven Development
web.worldbank.org/WBSITE/EXTERNAL/TOPICS/EXTSOCIALDEVELOPMENT/EXTCDD/0,,menuPK:430167~pagePK:149018~piPK:149093~theSitePK:430161,00.html

Publications:
AccountAbility, AA1000 Stakeholder Engagement Standard (AA1000SES)(2015)
www.accountability.org/standards
Association for Mineral Exploration British Columbia, Mineral Exploration, Mining and Aboriginal Community Engagement[Canada] (2005)
https://cdn2.hubspot.net/hub/374848/file-1693652040-pdf/ACE_Guidebook_2006.pdf
Australian Government, Community Engagement and Development (2006)
https://archive.industry.gov.au/resource/Programs/LPSD/Pages/LPSDhandbooks.aspx
Australian Government, Working with Indigenous Communities (2007)https://archive.industry.gov.au/resource/Programs/LPSD/Pages/LPSDhandbooks.aspx
Canadian Foundation for the Americas, Sustainable Communities: Mining and Indigenous Governance [Americas] (2008)
www.focal.ca/pdf/indigenous_FOCAL_sustainable%20communities%20mining%20indigenous%20governance_March%20
2008.pdf
Harvard University, Rights-Compatible Grievance Mechanisms: A Guidance Tool for Companies and Their Stakeholders (2008)
www.unglobalcompact.org/library/57
ICMM, Community Development Toolkit (2012)www.icmm.com/en-gb/publications/mining-and-communities/community-development-toolkit
ICMM, Human Rights in theMining and Metals Industry: Handling and Resolving Local Level Concerns and Grievances (2009)www.icmm.com/en-gb/publications/mining-and-communities/handling-and-resolving-local-level-concerns-and-grievances
IFC, Guidance Note 5: Land Acquisition and Involuntary Resettlement (2012)www1.ifc.org/wps/wcm/connect/4b976700498008d3a417f6336b93d75f/Updated_GN5-2012.pdf?MOD=AJPERES

266 RJC Code of Practices GuidanceIFC, Performance Standard 5: Land Acquisition and Involuntary Resettlement (2012)www.ifc.org/wps/wcm/connect/topics_ext_content/ifc_external_corporate_site/sustainability-at-ifc/policies-standards/
performance-standards/ps5
IIED, Avoiding New Poverty: Mining-Induced Displacement and Resettlement (2002)
http://pubs.iied.org/G00549
IIED, Meaningful Community Engagement in the Extractive Industries: Stakeholder Perspectives and Research Priorities(2016)
http://pubs.iied.org/16047IIED/
Next Generation, How Stakeholder Engagement Improves Community Development Projects and Programmes
https://nextgeneration.co.za/how-stakeholder-engagement-improves-community-development-projects-and-programmes
Office of the Compliance Advisor/Ombudsman, A Guide to Designing and Implementing Grievance Mechanisms forDevelopment Projects (2008)
www.cao-ombudsman.org/howwework/advisor/documents/implemgrieveng.pdf
Rio Tinto, Why Gender Matters (2009)www.riotinto.com/documents/ReportsPublications/Rio_Tinto_gender_guide.pdf
Rio Tinto, Why Human Rights Matter (2012)www.riotinto.com/documents/ReportsPublications/Rio_Tinto_human_rights_guide_-_English_version.pdf
26K, User Guides ISO 26000 (2010)www.26k-estimation.com/html/user_guides_iso_26000.html#user-guides
UN Human Rights, Basic Principles and Guidelines on Development-Based Evictions and Displacement—Guidance for States
www2.ohchr.org/english/issues/housing/docs/guidelines_en.pdf
UN Human Rights Council, Guiding Principles on Business and Human Rights: Implementing the United Nations ‘Protect,
Respect and Remedy’ Framework (2011)www.business-humanrights.org/media/documents/ruggie/ruggie-guiding-principles-21-mar-2011.pdf
UNICEF, Child Rights and Mining Toolkit (2017)www.unicef.org/csr/files/FINAL_Child_Rights_and_Mining_Toolkit_060217.pdf
World Resources Institute, Breaking Ground: Engaging Communities in Extractive and Infrastructure Projects (2009)
www.wri.org/publication/breaking-ground-engaging-communities

RJC Code of Practices Guidance 267

(COP 33) Indigenous peoples andfree, prior and informed consent
A Definitions and applicability
This provision applies to all members in the mining sector working in regions where indigenous peoples are present.
There is no universally accepted definition of free, prior and informed consent (FPIC). Within the COP, FPIC refers to a set ofmutual engagement processes between RJC members and indigenous peoples that are culturally appropriate, are establishedthrough good faith negotiation and go beyond consultation to include clear agreement by affected indigenous peoples. FPIC
does not necessarily require unanimity and may be achieved even when individuals or groups within the community explicitly
disagree. Through these processes, indigenous peoples are:• able to freely make decisions without coercion, intimidation or manipulation;• given enough time to be involved in project decision-making before key decisions are made and impacts occur; and• fully informed about the project and its potential impacts and benefits.
Good faith negotiation is a documented process (and resulting outcomes) of negotiation, in which all parties:• are willing to engage in the process and can meet at reasonable times and frequency;• use mutually acceptable procedures for negotiation;• know enough about the situation for informed negotiation;• explore key issues of importance;• are willing to change their initial position and modify offers where possible; and• are given enough time to make decisions.
There is no universally accepted definition of indigenous peoples. The term is used in this guidance to refer to a distinct socialand cultural group of people who, to varying degrees:• identify themselves as members of a distinct indigenous cultural group and are recognised as such by others;• are collectively attached to geographically distinct habitats or ancestral territories within the mining project area and to thenatural resources in these habitats and territories;• have customary cultural, economic, social or political institutions that are separate from those of the dominant society or
culture;• share a distinct language or dialect that often differs from the official languages of the country or region in which they live;
and• may or may not be recognised by law.
The mining lifecycle is the series of phases over the course of a mining project going from exploration, feasibility studies andconstruction through production to mine closure, rehabilitation and post-closure.
Sources:• International Council on Mining and Minerals (ICMM), Indigenous Peoples and Mining Position Statement (2013)www.icmm.com/en-gb/members/member-commitments/position-statements/indigenous-peoples-and-mining-positionstatement• International Finance Corporation (IFC), Performance Standard 7: Indigenous Peoples (2012)www.ifc.org/wps/wcm/connect/topics_ext_content/ifc_external_corporate_site/sustainability-at-ifc/policies-standards/
performance-standards/ps7

268 RJC Code of Practices GuidanceB Issue background
Indigenous peoples, also called ‘aboriginal peoples’, ‘minority nationalities’, ‘first peoples’ and ‘tribal populations’, can befound all over the world. The International Labour Organization (ILO) estimates that these peoples make up five per cent of
the world’s population, or nearly 370 million people, spread across more than 70 countries.1 With no universally accepted
definition, they are not always easy to identify, but they are generally understood to be communities whose members share a
distinct cultural identity from the rest of the country and who descend from a region’s original inhabitants or have historicallyoccupied certain regions.
Many indigenous peoples’ cultures and identities are inextricably linked to the lands on which they live and the natural
resources on which they depend. This means that mining projects that impact lands, forests, water, wildlife and other natural
resources on or near indigenous territories not only threaten these peoples’ livelihoods and economic development, they canalso affect their institutions and their ability to maintain and develop their identities and cultures (see Table 33.1).
The International Council on Mining and Metals (ICMM) suggests that indigenous peoples are likely to be affected by mining
projects if they:• have, or claim, some form of legally recognised ownership or control over the project’s land or resources;• are customary owners of the project’s land or resources (but are not legally recognised as such);• live on or use the project’s land or resources;• attach cultural, traditional or spiritual significance to sites, objects, resources or landscapes within the project area; or• live in communities whose social, economic and physical environment are or will be affected by the project (including, forexample, river-dependent communities).
Engagement and negotiation between mining companies and affected communities is an important vehicle for understanding
indigenous peoples’ development aspirations, shaping positive contributions to their community and social development, andmitigating negative impacts.
Table 33.1. Potential negative and positive impacts of mining projects on indigenous peoples
Negative impacts

Positive impacts

Physical or economic displacement and resettlement.

Improved infrastructure and services (for example, accessto clean water, sanitation, power, roads).

Loss of traditional livelihoods through lost access to landor damage to natural resources.
Destruction of, or damage to, culturally or spirituallysignificant sites and landscapes.
Social dislocation and erosion of cultural values throughrapid economic and social change.
Social conflicts over the distribution and value of miningrelated benefits (for example royalties or jobs).
Increased risk of exposure to diseases, mental healthdisorders, accidents and injuries, and nutritional
disorders.
Further marginalisation of some groups, such as women.
Increased competition and social tensions arising fromlarge-scale, uncontrolled in-migration.

More effective health services, delivery and preventive
measures (for example, spraying for malaria).
More support for education and better resources andfacilities.
Enhanced employment and business opportunities inmining and ancillary industries.
Increased income from royalty streams and compensation
payments.
Better living standards because of more wealth.
Finance and resources to support community
development, livelihood and cultural heritage
conservation.
Environmental restoration and protection (for example,
through reforestation or improved fire management).

Source: ICMM, Good Practice Guide: Indigenous Peoples and Mining (2015)
www.icmm.com/website/publications/pdfs/social-and-economic-development/9520.pdf

1

ILO, Indigenous and Tribal Peoples www.ilo.org/global/topics/indigenous-tribal/lang--en/index.htm

RJC Code of Practices Guidance 269

Mining projects depend on the broad support of communities—including indigenous peoples—to avoid conflict and minimisesocial, financial and reputational risk. In practice, such support is gained through a process of informed consultation andparticipation that fosters relationships, enables agreement and action on development projects and supports regular joint
progress reviews.
Interactions between mining companies and indigenous peoples should occur in the context of broader stakeholder
engagement (see COP 32 Stakeholder engagement) but should give special attention to the particular histories, capacities,
priorities and interests of indigenous peoples. That includes recognising broad-based or collective decision-making processes
used by indigenous peoples and documenting formal agreements in the form of written agreements or other types of records
that are recognised by the appointed leaders, spokespeople or representatives of the community.
In some circumstances, and in line with best practices, there is an expectation among governments, investors and civil societythat mining companies get the free, prior and informed consent (FPIC) of affected indigenous peoples before proceeding with amining project (see Figure 33.1).

Free

Informed
Indigenous
peoples are fully
informed about
the project and its
potential impacts
and beneﬁts.

Indigenous
peoples can makefree decisions
without coercion,
intimidation ormanipulation.

FPIC

Prior
Indigenous peoples are
given enough time to be
involved in projectdecision-making before
key decisions are madeand impacts occur.

Figure 33.1. Fundamental characteristics of FPICC Key regulations, standards and initiatives
The rights of indigenous peoples are protected under both national and international law, which together establish
responsibilities for states. At the same time, private companies are increasingly expected to conduct their affairs in a way that
upholds these rights.

International instruments
Two landmark, mutually reinforcing, international instruments exist to recognise and protect the rights of indigenous peoples,
including their right to FPIC:• The UN Declaration on the Rights of Indigenous Peoples (UNDRIP)2 was adopted by the UN General Assembly in
September 2007 after 22 years of development and negotiation. The declaration sets out the individual and collective rights
of indigenous peoples, including their rights to culture, identity, language, employment, health, education and other issues.
Although the declaration is not legally binding, it remains the strongest commitment to indigenous peoples’ rights made by
UN states.

2

UN, UN Declaration on the Rights of Indigenous Peoples (2007) www.un.org/esa/socdev/unpfii/documents/DRIPS_en.pdf

270 RJC Code of Practices Guidance• The International Labour Organization (ILO) Indigenous and Tribal Peoples Convention 2018 (C169)3 was adopted in
1989 and has been ratified by 23 countries as of 2018. ILO C169 outlines responsibilities for governments to overcome
discrimination against indigenous peoples and enable them to participate in (but not veto) decisions that affect theirlives (including, for example, the development of mining projects). It covers a wide range of issues, including land rights,
employment, education, health and social security, customary law and traditional institutions and consultation andparticipation. Many states take issue with ILO C169 because it clashes with their constitutional provisions that require
all ethnic groups to be treated equally before the law. This is particularly true in African states with diverse, ethnicallyheterogeneous national populations. While private companies do not have any direct obligations under ILO C169, theconvention has clear implications for their activities and operations.
Both the UNDRIP and ILO C169 emphasise the state’s responsibility to consult indigenous peoples whenever legislative or
administrative measures may affect them directly.

Industry standards
The International Finance Corporation (IFC) Environmental and Social Performance Standards (‘IFC Performance Standards’,
www.ifc.org/performancestandards) define IFC clients’ responsibilities for managing environmental and social risks. A global
benchmark on good practice, these comprise eight standards, including:• Performance Standard 7: Indigenous Peoples, which offers the private sector a detailed standard and associated guidance
for minimising negative impacts on and promoting development benefits for indigenous peoples. The standard is designed toensure that companies:•

fully respect the human rights, dignity, aspirations and natural resource-based livelihoods of indigenous peoples;•

anticipate and avoid (or where unavoidable, minimise and compensate for) a project’s adverse impacts on indigenous
peoples;•

promote sustainable development benefits and opportunities for indigenous peoples in a culturally appropriate manner;•

establish and maintain an ongoing relationship based on informed consultation and participation with affected indigenous
peoples throughout the mining lifecycle;•

ensure the FPIC of affected indigenous peoples in certain circumstances (including for mining projects involving resourcesthat are traditionally owned or under customary use, as well as projects that impact critical cultural heritage); and•respect and preserve the culture, knowledge and practices of indigenous peoples.

The IFC Performance Standards (and through them, FPIC) are embedded in the Equator Principles(http://equator-principles.com); see COP 24 Environmental management for more information.
The International Council on Mining and Metals (ICMM) Indigenous Peoples and Mining Position Statement,4 adopted in2013, commits its members to engage and get FPIC of potentially affected indigenous peoples for any new project (or any
change to an existing one). The position statement sets out ICMM’s understanding of FPIC as defined in Section A. To help its
members fulfil their commitments under the 2013 position statement, ICMM published a good practice guide on indigenous
peoples and mining.5 The guide, which was updated in 2015 to specifically support FPIC requirements, highlights practical
approaches to engaging indigenous peoples that can be adapted by companies and communities to fit their own context.
The guide draws on case studies of both good and poor practice in areas such as participation, agreement making, managing
impacts and sharing benefits, and dealing with grievances.
In 2017, the Mining Association of Canada (MAC) adopted a Towards Sustainable Mining (TSM) Aboriginal and Community
Outreach Protocol6 to detail its members’ commitments. It includes four indicators: community of interest (COI) identification;effective COI engagement; COI response mechanism; and reporting.
In the energy sector, Equitable Origin’s Indigenous Peoples’ Program, with the support of ISEAL and several indigenous
peoples’ associations and standard-setting groups, has developed a number of resources on FPIC7 including the FPIC360 Tool
to monitor and verify voluntary and regulatory FPIC requirements.

National law
The legal framework for indigenous peoples varies significantly across countries, depending on the history of colonisation,
migration and conflict. Some countries may not recognise indigeneity or ethnicity as an acceptable category for making
distinctions in terms of relative entitlements, but national law continues to evolve.

3

ILO, C169—Indigenous and Tribal Peoples Convention (1989) www.ilo.org/dyn/normlex/en/f?p=NORMLEXPUB:12100:0::NO::P12100_ILO_CODE:C169

4ICMM, Indigenous Peoples and Mining Position Statement (2013)www.icmm.com/en-gb/members/member-commitments/position-statements/indigenous-peoples-and-mining-position-statement

5

ICMM, Good Practice Guide: Indigenous Peoples and Mining (2015) www.icmm.com/website/publications/pdfs/social-and-economic-development/9520.pdf

6

https://mining.ca/sites/default/files/Aboriginal%20and%20Community%20Outreach-EN%20-%20WITH%20TAILINGS%20CRITERIA.pdf

7Equitable Origin, Free, Prior and Informed Consent https://www.equitableorigin.org/programs/free-prior-and-informed-consent/)

RJC Code of Practices Guidance 271

Legal requirements for consultation and FPIC similarly vary across countries. Some countries—including Australia, Canada,
Papua New Guinea and Philippines—have national or state laws that govern how to involve indigenous peoples in development
decisions that affect their customary rights or lands. In countries where there is no legislation on FPIC (including all of Africa),
best practice dictates that companies must first negotiate the terms of the FPIC process with indigenous peoples before
getting the consent itself.
RJC members are expected to maintain an understanding of, and act in accordance with, applicable law in all jurisdictions ofoperation.

D Implementation guidance
COP 33.1: Respect for rights of indigenous peoples
Members in the mining sector that operate in regions where indigenous peoples are present shall respect the rights
of indigenous peoples as articulated and defined in applicable local, national and international laws and their social,
cultural, environmental and economic interests, including their connection with lands and waters.

Points to consider:• Give a senior manager overall responsibility for relationships with indigenous peoples; this will often be the same person
responsible for your stakeholder engagement and community development programmes.
• Carefully consider the make-up of the team that develops and maintains relationships with indigenous peoples. Affectedindigenous communities must know who the contact person is for all issues related to the mine’s activities, and must haveaccess to a rights-compatible grievance mechanism (see COP 32.2 Stakeholder engagement).
• Draw on experienced experts with relevant language, anthropological, cultural and social skills to help you develop policies,
training, strategies, plans and actions that fully respect the rights of indigenous peoples.
• Establish a written policy and procedures to articulate your position and approach to indigenous peoples potentially affectedby your business. These must cover your commitments to:

1. Understand and respect rights, including to:•respect the rights, interests, aspirations, culture and natural resource-based livelihoods of indigenous peoples;•clearly identify and fully understand the interests and perspectives of indigenous peoples regarding a project and its
potential impacts; and•consider the influence of gender on indigenous peoples’ rights and opportunities for engagement.

2. Engage appropriately, including to:•engage with and consult indigenous peoples in a fair, timely and culturally appropriate way throughout the mining lifecycle
to seek broad-based support for its activities;•

get FPIC in applicable circumstances;•consider using different approaches to engage with different indigenous peoples that may have different needs andrealities; and•monitor the progress of engagement approaches and agreements, and evaluate impacts with key stakeholders.

3. Minimise adverse impacts, including to:•

jointly design projects to avoid adverse impacts on indigenous peoples, and to minimise, manage or fairly compensate forany unavoidable impacts; and•arrange to protect cultural property or sites of religious significance for indigenous peoples.

4. Deliver benefits, including to:•negotiate partnerships or programmes that deliver development benefits to indigenous peoples;•

use affirmative action and partnerships to enable more indigenous people to work for the mine or associated businesses;•

try and build long-term partnerships with indigenous peoples to support self-empowered regional and community
development (for example, through education, training, healthcare and business enterprise support); and•support, where appropriate, governments or other institutions including civil society organisations (including NGOs) tohelp alleviate and resolve issues faced by indigenous peoples near mining operations.

272 RJC Code of Practices Guidance• Support company policies and procedures with relevant training or education programmes to:•make sure that all staff who engage with indigenous peoples understand key principles of engagement, local issues andwhat is appropriate conduct; and•create employment opportunities for indigenous workers who might otherwise not meet usual employability criteria.

• If there are indigenous peoples in your workforce, consider whether or not all staff need cultural awareness training. The
objective of such training should be to build cross-cultural understanding: for company personnel to understand indigenous
peoples’ culture, values and aspirations, and for indigenous peoples to understand a company’s principles, objectives,operations and practices.

COP 33.2: Free prior and informed consent (FPIC)
Provision 33.2 applies to new mining facilities, or for changes to existing facilities, that are likely to have significant
adverse impacts on indigenous peoples including, but not limited to, those associated with:• Impacts on lands and natural resources subject to traditional ownership or under customary use.
• Relocation of indigenous peoples from lands and natural resources subject to traditional ownership or under customary use.
• Significant impacts on critical cultural heritage that is essential to indigenous peoples’ identity and/or their cultures,
ceremonies or spiritualities.
• Use of cultural heritage (including indigenous peoples’ knowledge, innovations or practices) for commercial purposes.
Members in the mining sector shall, as described in International Finance Corporation (IFC) Performance Standard 7:
a. Work to obtain the free, prior and informed consent of affected indigenous peoples during the planning and approvalstages, through a process that is based on good faith negotiation and strives to be consistent with their traditional
decision-making processes while respecting internationally recognised human rights.
b. Document the mutually accepted process between the member, the affected indigenous peoples and relevant government
authorities, and document the evidence of agreement between the parties and the outcome of the negotiations including
compensation, if applicable.

Points to consider:• When engaging with indigenous peoples, check whether you need an FPIC process by reviewing the bulleted circumstances
listed in COP 33.2. This provision does not apply retrospectively; it only applies to mining facilities where the bulleted
circumstances arise after you joined the RJC or as a result of changes since your last verification assessment, whichever ismost recent.
• Where you do need to get FPIC from indigenous groups, follow the three steps below to meet RJC expectations.

1. Setting the rules• Check whether applicable law defines a specific FPIC process for you to follow; if it does, follow it.
•

Note that governments may sometimes be responsible for managing the interests of indigenous peoples in a waythat limits your company’s involvement. If that is the case, work with the responsible authorities to achieve outcomesconsistent with the principles of this provision.

• Where applicable law does not define a FPIC process, establish mutually agreed terms for such a process through good faithnegotiation with affected communities.

2. Engaging for FPIC• In all cases, follow IFC guidance for Performance Standard 7 on Indigenous Peoples (2012) when seeking FPIC from affectedindigenous peoples. In particular, make sure your approach:•is consistent with traditional decision-making structures;•

involves traditional governing bodies and seeks the input of disadvantaged and vulnerable groups (exactly how you do thatwill vary across cultures and contexts);•

is based on good faith negotiation, as defined in Section A; and•is fully documented, including the terms, activities and outcomes of engagement (see Figure 33.2).

• In cases where mining activities are likely to displace indigenous peoples—physically or economically—then your approach
must also comply with COP 36 Resettlement.

RJC Code of Practices Guidance 273

Documenting FPIC

Use a format that isboth understandable
and acceptable toindigenous peoples.

s

ms

e
e a c ti viti t
ou
The

co

Th

s
me

ter

e

Document the mutuallyagreed framework forengagement.

Th

The terms

The activities
Document the FPIC process itself,
including meeting minutes andattendees.
Document efforts to avoid andotherwise minimise impacts.

The outcomes
Document evidence ofagreement between
parties.
Set out roles andresponsibilities in a
written document or
action plan, including
speciﬁc commitments.

Identify, assess and document
existing resource use and land
rights (both formal and customary).

Figure 33.2. Different elements of documentation during the FPIC process• As a process, FPIC should:•

build on general principles for engaging affected groups (see COP 32 Stakeholder engagement);•

foster an ongoing respectful relationship based on trust that endures throughout the mining lifecycle; and•reflect a framework for consent that represents broad-based consent across affected groups, rather than the limited
consent of a few individuals acting without the knowledge of the wider community.

3. Reaching agreement• Indigenous peoples must be free to give or withhold their consent to a project.
• That means that even if you follow a legitimate process, you may not necessarily reach agreement. If consent is notforthcoming despite the best efforts of all parties, consider seeking mutually agreed third- party advice or mediation as away of breaking the deadlock.
•Note that in some cases where agreement cannot be reached, a government might step in and determine that a project cango ahead anyway, in which case it will usually specify the conditions under which you can proceed.

• Consent does not have to be unanimous to reach agreement: an agreement can still be reached, and FPIC can still beachieved, even if a few individuals or small groups within the community explicitly disagree.
• Once you have the community’s consent to the project, document it in, for example, a memorandum of understanding, aletter of intent or a joint statement of principles to set out the agreed roles and responsibilities of both parties and list any
specific commitments, which may include:•

consent for specific project activities, impacts and mitigation measures;•the terms of ongoing engagement and consultation process;•governance arrangements;•

strategies for managing environmental, social and cultural impacts (including land and resource management);•

criteria for compensation, including what the compensation is and how it will be disbursed;•

employment and contracting opportunities;•

community development partnerships, programmes or initiatives;•

continued access to land and natural resources; and•fair and equitable sharing of benefits associated with use of indigenous knowledge, land and culturally significant
resources.

274 RJC Code of Practices Guidance• The agreement should be valid for the duration of the project.
• Monitoring the actions and evolving context of the agreement is a best practice and the agreement should be flexible inadapting it as needed during the mining lifecycle.

COP 33.3: Broad-based support
Where FPIC is found not to apply, members in the mining sector shall seek to obtain broad-based support of affectedindigenous peoples before carrying out any new or expanded activities and seek to maintain it throughout the mining
lifecycle. This support shall be formally documented before the project begins. The documentation shall include anycompensation, partnerships and/or programmes to provide benefits and mitigate impacts.

Note that this provision applies in all cases where there are affected indigenous peoples (compared with the FPIC provision
COP 33.2, which only applies under specific circumstances as noted).

Points to consider:• Turn your policy and procedures into practice and use them to build broad-based support for mining operations among
affected indigenous peoples.
• How you do this will vary depending on your operating context. The points below offer general guidance that may or may not
be relevant to your situation.
• In most cases, building broad-based support requires a good understanding of the affected group’s interests anddevelopment aspirations and a mutual trust that the mining activities will benefit, not harm, these groups. This, in practice,means ensuring robust assessment and effective engagement (see points below).
• In all cases, document the outcomes of your engagement activities as evidence of building broad-based support. In particular,
document any formal agreements in the form of written impact-benefit agreements or other types of records that arerecognised by the appointed leaders, spokespeople or representatives of the community.

Assessment• Use qualified social scientists and other professionals to assess the potential impact of your business on indigenous peoples.
This could, for example, include:•

ethnographic and archival research;•

participatory approaches with disadvantaged and vulnerable groups;•

assessment of traditional institutions;•

mapping of indigenous land use in and around proposed mining areas; and•review of all applicable national, regional and international laws and regulations, including customary laws and any
relevant industry standards.

Cross-check on COP requirements
The need to understand and engage affected groups, including indigenous peoples, is embedded throughout the COP.
For example, both environmental and social impact assessments (COP 34 Impact assessment) and mine closure plans(COP 42 Mine rehabilitation and closure) must include a consideration of the interests and perspectives of affectedgroups, including indigenous peoples. And both must be based on consultation with these groups and take their concerns
into account as far as possible.
COP 32 Stakeholder engagement sets the standard for engaging affected groups in general, but also applies to indigenous
groups in so far as it covers approaches to community development, engagement and operational-level grievancemechanisms. Engagement with affected indigenous peoples, wherever possible, should be done through traditional
authorities within indigenous communities and with respect for traditional decision-making structures and processes.
If mining activities are likely to displace indigenous peoples—physically or economically—then COP 36 Resettlement also
applies.

RJC Code of Practices Guidance 275

Engagement• Adhering to requirements of COP 32 Stakeholder engagement, establish a process for engaging indigenous peoples andmake it inclusive, equitable, culturally appropriate and rights-compatible. The engagement process should be commensuratewith the nature and scale of the potential adverse impacts.
• If engaging an indigenous group for the first time, or re-engaging after circumstances have changed, ensure that theengagement process is agreed from the outset; get agreement from the potentially affected group as well as all relevant
government authorities.
• In all cases, when engaging affected indigenous peoples, consider how best to:•build your institutional capacity to identify and deal appropriately with their needs;•

involve their representatives (for example, village elders or councils), as well as members of their communities (especiallyfrom disadvantaged and vulnerable groups);•

provide enough time to accommodate their decision-making processes;•

provide mechanisms to cope with any differences of opinion that may arise; and•where required, provide support to build community capacity for good faith negotiation.

Check:■■Do you understand the legal rights of affected indigenous peoples under applicable law, and their social, cultural,environmental and economic interests?

■■Do you have policies and procedures in place to ensure you respect the rights of indigenous peoples?
■■Have you assessed the potential impact of your business on indigenous peoples?
■■Do you have an engagement process that seeks to obtain broad-based support of affected indigenous peoples?
■■Has this support been documented?
■■Do you have programmes in place to provide benefits to indigenous peoples and mitigate impacts?
■■Do you understand the conditions under which you should seek FPIC and the process that should be followed?
■■Have the FPIC process and the outcomes of the negotiations, if concluded, been properly documented?
Q&A: Indigenous peoples and FPIC
1. Does COP 33 apply if the communities affected are not indigenous peoples?
No. But it is not always easy to tell if a community is indigenous or not: use of the term ‘indigenous’ is controversial in somecountries, unrecognised in others or unacknowledged in fear of discrimination. In line with best practice, RJC members
are expected to apply the principles of FPIC to all groups exhibiting the commonly accepted characteristics of indigenous
peoples, as outlined in Section A. If you are in any doubt as to whether a group is indigenous or not, seek the advice ofcompetent professionals.

2. Does the FPIC provision apply to mines that are already operating or have already got development consent?
Not necessarily. The FPIC provision is not retrospective. It only applies to new activities and to activities that represent asignificant change to existing facilities. You are, however, expected to engage affected indigenous communities throughout
the mining lifecycle, in accordance with COP 32 Stakeholder engagement and COP 42 Mine rehabilitation and closure,and to respect their rights and get their broad-based support, in accordance with COP 33.1 and 33.3.

3. Is agreement-making, for example creating an impact-benefit agreement, a suitable FPIC process?
Yes, if it is carried out in good faith and with the informed consultation and participation of indigenous peoples. Consult
the IFC guidance for more information on key principles of FPIC and how to account for varying social contexts andcircumstances.

4. Is FPIC a right to veto?
Organisations that represent indigenous peoples, and civil society organisations (including NGOs) advocating for theirrights, tend to consider FPIC as a right to veto any decision that may affect them. But many governments and companies
do not share this view. The UNDRIP says that FPIC is about ‘establishing consent as the objective of consultations withindigenous peoples’ (rather than the end). The IFC takes a similar stance, saying that ‘engagement processes should
focus on achieving agreement while not conferring veto rights to individuals or sub-groups’. Neither does FPIC require
unanimous support to be achieved under the IFC, as long as most of the affected groups agree.

276 RJC Code of Practices Guidance

E Further information
Websites:
Indigenous Peoples Links (PIPLinks)
http://int.piplinks.org
Oxfam Australia, Free, Prior and Informed Consent
www.oxfam.org.au/what-we-do/mining/free-prior-and-informed-consent

Publications:
Association for Mineral Exploration British Columbia, Mineral Exploration, Mining and Aboriginal Community Engagement:
A Guidebook (2005)
http://commdev.org/userfiles//files/843_file_6E830BA41323EB5F.pdf
Australian Department of Industry, Innovation and Science, Working with Indigenous Communities (2007)https://archive.industry.gov.au/resource/Programs/LPSD/Working-with-indigenous-communities/Pages/default.aspx
Business for Social Responsibility, Engaging with Free, Prior, and Informed Consent (2012)www.bsr.org/en/our-insights/report-view/engaging-with-free-prior-and-informed-consent
Canadian Foundation for the Americas, Sustainable Communities: Mining and Indigenous Governance (2008)
www.focal.ca/pdf/indigenous_FOCAL_sustainable%20communities%20mining%20indigenous%20governance_March%20
2008.pdf
Equitable Origin, FPIC Reporthttps://www.equitableorigin.org/programs/free-prior-and-informed-consent/
Foley Hoag, Implementing a Corporate Free, Prior, and Informed Consent Policy (2010)www.foleyhoag.com/publications/ebooks-and-white-papers/2010/may/implementing-a-corporate-free-prior-and-informedconsent-policy
Forest Stewardship Council, FSC Guidelines for the Implementation of the Right to Free Prior Informed Consent (FPIC) (2012)https://ic.fsc.org/file-download.fsc-gui-30-003-v1-0-fsc-guidelines-for-the-implementation-of-the-right-to-free-prior-andinformed-consent-fpic.a-2106.pdf
ICMM, Indigenous Peoples and Mining Good Practice Guide (2015)
www.icmm.com/en-gb/publications/mining-and-communities/indigenous-peoples-and-mining-good-practice-guide
IFC, Guidance Note 7: Indigenous Peoples (2012)
http://www1.ifc.org/wps/wcm/connect/50eed180498009f9a89bfa336b93d75f/Updated_GN7-2012.pdf?MOD=AJPERES
IFC, Performance Standard 7: Indigenous Peoples (2012)
http://www1.ifc.org/wps/wcm/connect/1ee7038049a79139b845faa8c6a8312a/PS7_English_2012.pdf?MOD=AJPERES
ILO, C169—Indigenous and Tribal Peoples Convention (1989)
www.ilo.org/dyn/normlex/en/f?p=NORMLEXPUB:12100:0::NO::P12100_ILO_CODE:C169
UN, UN Declaration on the Rights of Indigenous Peoples (2007)
www.un.org/esa/socdev/unpfii/documents/DRIPS_en.pdf
UN Human Rights, Expert Mechanism Advice No. 2: Indigenous Peoples and the Right to Participate in Decision-Making (2011)www.ohchr.org/Documents/Issues/IPeoples/EMRIP/Advice2_Oct2011.pdf
World Resources Institute, Development Without Conflict: The Business Case for Community Consent (2007)
http://pdf.wri.org/development_without_conflict_fpic.pdf

RJC Code of Practices Guidance 277

(COP 34) Impact assessment
A Definitions and applicability
This provision applies to all RJC members in the mining sector and to mine infrastructure and related projects such as roads,
rail lines, power lines and ports. Note that this provision applies to new projects as well as any significant change to existing
projects with the potential to affect local communities and the surrounding environment. Retrospective conformance is notexpected.
Impact assessment is the process of identifying, predicting, evaluating and mitigating the biophysical, social and other relevant
effects of development proposals before any major decision or commitment is made. Impact assessment is used to ensure thatprojects, programmes and policies are economically viable, socially equitable and environmentally sustainable.
A landscape is the visible features of an area of land, including physical elements such as landforms, living elements of flora andfauna, abstract elements such as lighting and weather conditions, and human elements, for example human activity or the built
environment. Landscape means different things to different people. For the ecologist it may be the habitat of a certain species.
For local households and communities, it may be the local forest, watershed or agricultural setting. For government agencies,
it can mean an entire bioregion that crosses political boundaries and encompasses multiple watersheds, towns, villages,
highways, flora, fauna, core protected areas, buffers and corridors.
Landscape level planning, whether done to guide conservation, sustainable land use or development, sets out to tackle
issues that are not tractable at the very local scale by taking a multi-stakeholder perspective at a wider, landscape scale.
It encompasses a diverse range of practices that seek to link local community-based action to the broader landscape or
ecosystem, taking into consideration national and regional perspectives.
The mining lifecycle is the series of phases over the course of a mining project going from exploration, feasibility studies andconstruction through production to mine closure, rehabilitation and post-closure.
Vulnerable groups are characterised by their higher risk and reduced ability to cope with shock or negative impacts. Theirvulnerability may be based on socio-economic condition, gender, age, disability, ethnicity or other criteria that influencepeople’s ability to access resources and development opportunities. It is always specific to the particular location and time.
Sources:• Forest Trends, Business and Biodiversity Offsets Programme (BBOP): Glossary (2009)
www.forest-trends.org/wp-content/uploads/imported/Glossary.pdf• International Association for Impact Assessment (IAIA)
www.iaia.org

B Issue backgroundImpact assessments focus on the potential consequences of a project—positive and negative, intended or unintended—and areused to remove, reduce and manage the negative impacts and maximise the positive ones.
Environmental and social impacts are usually inextricably linked and communities often bear the impacts of a change in,for example, air and water quality, noise levels, biodiversity and ecosystem services, or of land take and its relationship to
local livelihoods. Most companies therefore carry out a combined environmental and social impact assessment (ESIA) tosimultaneously evaluate a broad range of both environmental and social risks (see figure 34.1). Some topics require moredetailed assessments than others. ESIAs are often made up of multiple topic-specific impact assessments on, for example,
human rights, health or biodiversity.
In all cases, the scale and detail of an impact assessment should be proportional to the project and its potential impacts. ESIAs
are always required for new mining projects or significant changes to existing projects. When it’s unclear whether a change toan existing project is significant or not, an initial screening analysis can help to determine whether a full ESIA is needed or not.

278 RJC Code of Practices GuidanceLandscape level planning
Assessments that take a landscape level planning approach look at the impacts of an individual project within the context
of its surrounding landscape. They consider the effects of indirect and cumulative impacts across the full mining lifecycle.
They also work across different stakeholders, understanding that companies, governments and local communities all havean active role in shaping the social and environmental landscape.
Landscape level planning can help to harmonise disparate goals while balancing economic development and conservation
initiatives within the same geographic area. In short, landscape level planning helps situate individual plans and land units
within their larger economic, social and ecological context to create optimum solutions that maximise environmental
and social benefits. Impact assessments that take a landscape level planning approach have the potential to deliver asignificant net positive impact on sustainable development.

Impact assessments usually start with a scoping study, which identifies which environmental and social aspects of the project’s
location are relevant and will require studying. Scoping also identifies data availability and gaps, identifies what baseline
studies are needed as a reference point for assessing future changes, establishes the spatial and temporal scopes for theassessment, and suggests suitable survey and research methods. Baseline studies may need to be carried out for a year or
more to capture any variable, seasonal or transient characteristics of the local environment or social context.
Similarly, engaging affected communities and other stakeholders is critical and must be done over enough time forcommunities, companies, government officials and civil society organisations to fully understand, evaluate and discuss
concerns through their own processes. Using a landscape level approach means working in an integrated way with all theparties that play a role in the landscape. Adequate timeframes can be very different for different stakeholders and are easily
underestimated.
Impact assessments should take place at the earliest possible stage of a new mining-related project and should beappropriately tailored to the project. They are a key input to project design and must be done far enough in advance to be able
to realistically minimise and mitigate negative impacts (in particular, to consider the mitigation options of a series of alternative
designs, locations, technologies and operations).
Impacts are managed, and mitigation measures implemented, through an environmental and social management system(ESMS), which brings together all the risk-specific management plans under a single implementation framework.

RJC Code of Practices Guidance 279

1

Screening
Quick, high-level analysis

impact assessment needed2

Scoping3

Baseline studiesbe

Stakeholder
engagement
Communities

4

Governments
Companies
NGOs
Civic groups

5

Identify impacts likely
to be signiﬁcantAssessment

Collect reference data forassessing future changes

Impact predictionand evaluation
Cover all environmental
and social risks andimpacts

Mitigation
Identify mitigation
options (preventive
over remediative action)

Topic experts

6

Alternatives
Consider alternative
project designs

Decision to proceed7
8

Risk managementplans
For speciﬁc risks
and impacts

Management system
To manage impacts andimplement mitigation

Figure 34.1. The impact assessment process
Source: IFC, A Guide to Biodiversity for the Private Sector
www.ifc.org/wps/wcm/connect/296ae980488551f5aa0cfa6a6515bb18/ESIA.pdf?MOD=AJPERES

280 RJC Code of Practices Guidance

Disclosure
Publish and disseminate
impact assessment

C Key regulations, standards and initiatives
International standards
TheInternational Finance Corporation (IFC) Environmental and Social Performance Standards (‘IFC Performance Standards’,
www.ifc.org/performancestandards) define IFC clients’ responsibilities for managing environmental and social risks. A global
benchmark on good practice, these comprise eight standards, including:• Performance Standard 1: Assessment and Management of Environmental and Social Risks and Impacts, which describes therequirements for a good environmental and social management system and is particularly relevant to this provision. (Seeguidance for COP 24 Environmental Management for more information on IFC Environmental and Social PerformanceStandards.)
The IFC Performance Standards are embedded in the Equator Principles (http://equator-principles.com); see COP 24
Environmental management for more information.

National and local law
Most countries have national, state and/or local legislation about ESIAs. To get development approval, mining projects willusually have to do a full and formal ESIA. National and international requirements can differ significantly and, in many cases,
two sets of documents may be needed (including one in a local language) to fulfil project ESIA requirements.
RJC members must be aware of applicable law and regulation in all jurisdictions in which they operate.

D Implementation guidance
COP 34.1: Impact assessment and plans
When planning and approving new mining projects or significant changes to existing projects, members in the mining
sector shall complete an environmental and social (including human rights) impact assessment (ESIA), and develop an
associated environmental and social management system.

Points to consider:• Establish a process to screen any new expansion, acquisition or other investment in mining facilities (including significant
exploration activities) to determine if there are potential environmental and social risks and impacts that require an ESIA.
• If an ESIA is required, make sure it considers all the risks and impacts within your project’s area of influence, which is defined
under IFC Performance Standard 1 as being the area that is:•directly owned, operated or managed (including by contractors) by your company and is likely to be affected;•

impacted from unplanned but predictable developments caused by your project that may occur later or at a different
location; and/or•

subject to impacts on biodiversity or ecosystem services upon which affected communities’ livelihoods depend.

• Consider using a landscape level approach when assessing impacts, identifying the landscape in which the mining projectwill be situated and all the different stakeholders with an active role in shaping and using that landscape (for example,
communities, government officials, civic groups and non-governmental organisations, and other companies, at local, national
and international levels).
• In all cases, begin your impact assessment as early possible and make sure that it:•

includes, where relevant, mine closure planning to account for the project’s long-term impacts (see COP 42 Minerehabilitation and closure);•

adheres to any timing and format requirements defined by applicable law or financing institutions; and•is carried out by appropriately qualified and experienced experts. Specialists are often needed to do the baseline studies
and to facilitate and document the outcomes of the impact assessment. An impact assessment may be (or be perceived as
being) more credible if it is prepared or at least peer reviewed by an independent firm.

• Impact assessments are the first step for developing an ESMS to manage environmental and social risks and mitigate
impacts. Your ESMS must be developed and implemented before construction at the latest, which is when many of thesignificant impacts of a mining project first occur. It should include:

RJC Code of Practices Guidance 281

•

an overarching policy defining the environmental and social objectives and principles that guide the project;•a process for identifying environmental and social risks and impacts;•

management programmes that address specific risks and impacts;•

defined roles, responsibilities and authorities to implement the management system; and•processes for stakeholder engagement, monitoring and review, and for addressing grievances.

• Establish and implement documented action plans and procedures as part of your ESMS to ensure compliance withapplicable laws, regulations and licences.
• Make the environmental and social performance requirements of the project part of your bidding packages for construction
contracts. And when evaluating bids, consider the contractors’ approach to environmental and social aspects as well as
technical and financial aspects.
• Explicitly include performance requirements in contracts, with penalties for non-conformance where appropriate. Your
engineering, procurement, construction and management contractor may use a special ‘construction phase’ ESMS during the
project build to better control the activities of the many subcontractors typically involved in building a mine.

COP 34.2: Baseline conditions, impacts and design options
Impact assessments shall be comprehensive, appropriate to the nature and scale of the project, and shall collectively assess:a. Baseline conditions.
b. Environmental, social and human rights impacts, including but not limited to impacts on biodiversity and ecosystemservices, labour and employment, gender, health and conflict. This includes cumulative and indirect impacts.
c. Design options to avoid and minimise negative impacts where applicable.

Points to consider:• Your impact assessment should identify all relevant environmental and social risks and impacts. Consider using a scoping
study to identify those impacts that are most relevant to your project and to establish the full scope of your ESIA (whatstudies to carry out, what time and expertise is needed, etc.). Note that you will need to gather both site-specific and broader
background information on, for example, economic context, governance, regional water use and food security.
• In all cases, identify risks and impacts using the recent environmental and social baseline data, at a level of detail thatis appropriate to the nature, scale and risks of your project. What might be appropriate for an initial exploration will bedifferent from that required for a large-scale mining project.
• Key issues to cover in your ESIA include (see box ‘Key topics for your ESIA’):•Land rights: how local communities understand their past and present rights to access land and resources is important
contextual information. Many mine sites have had multiple owners before they are developed, which can lead toinconsistent engagement with communities and misunderstandings on land and resource access. An effective engagement
process on this topic as part of an impact assessment can greatly help manage potential issues.

•

Infrastructure: consider the potential impact of any infrastructure, such as roads, power stations, ports, employee
housing, etc., that may be created to support mining operations. These may in themselves require separate ESIA processes,
depending on their proposed location or timing of construction. In all cases, consider potential synergies with community
and regional development plans and priorities.

•

Human rights: human rights may need its own ESIA. Use international human rights law as your framework for this, andmake sure you take into account differential impacts on men and women, boys and girls, the elderly and the vulnerable.
You can assess human rights impacts as part of a broader social, environmental or combined impact assessment, or asa stand-alone assessment. If you identify risks of adverse human rights impacts, use your ESMS to outline how you will
provide for or co-operate in remedy.

•

Artisanal and small-scale mining (ASM): ASM may need its own ESIA. If it is present on or near your proposed projectsite, consider the impacts you may have on ASM communities, the impacts that ASM will have on your project and how
ASM might affect other identified impacts—for example, how ASM operations might affect water management (throughchanging water use), waste rock stability (through re-mining) or resettlement (through ASM in-migration). See COP 8
Sourcing directly from artisanal and small-scale mining and COP 35 Artisanal and small-scale mining and large-scale
mining for more information.

• Where appropriate, include an analysis of alternative project designs in your assessment to identify the least damaging
option. When considering mitigation options in these, follow the mitigation hierarchy that favours preventive overremediative action (see Figure 24.2 Environmental management).
• In all cases, use a participatory approach that empowers affected communities to assess risks and design and implement
effective mitigation measures and potential benefits.

282 RJC Code of Practices GuidanceKey topics for your ESIA
Some of the topics that might be particularly relevant to an ESIA for mining projects include:• Artisanal and small-scale mining.
• Biodiversity and ecosystem services.
• Conflict.
• Economic displacement.
• Food security.
• Gender.
• Health.
• Human rights.
• Labour and employment.
• Land and customary rights.
• Livelihoods.
• Mine waste.
• Physical displacement.
• Water use.
Use a scoping study to identify which of these are likely to be significant and include them in your efforts to understand existing
circumstances, collect baseline data and engage stakeholders in considering environmental and social risks and impacts.

COP 34.3: Engagement
Environmental and social impact assessments and management systems shall engage affected communities andstakeholders, including disadvantaged and vulnerable groups. A report on the ESIA shall be publicly disclosed in aformat and language appropriate to affected communities and key stakeholders.

Points to consider:• Stakeholder engagement is an ongoing process involving stakeholder analysis, external communications, consultation andreporting (see guidance for COP 32 Stakeholder engagement). It should form a pillar of your environmental and social
management system to ensure an appropriate ongoing two-way flow of information and an extra level of communication
when there are any incidents or changes with potential environmental and social impacts.
• Where relevant, be sure to allocate adequate resources for working with landscape level partners.
• Engagement programmes vary in nature and complexity: they should be commensurate with the project’s status, risks andpotential adverse impacts.
• Your engagement programme should also reflect the characteristics and interests of the affected communities (as identified
in COP 32 Stakeholder engagement). And it should enable the meaningful participation of disadvantaged and vulnerable
groups who may require extra help and attention to participate in consultation, data collection or dialogue.
• Make the findings of your impact assessment publicly available and easily accessible and understandable by affected
communities and stakeholders.

Check:■■Do you have an overall system in place for managing environmental and social risks and impacts that includes doing
ESIAs?

■■Does the system include the establishment of management plans and procedures to address all identified risks andimpacts?

■■Does your impact assessment process begin as early as possible for all new mining projects or significant changes toexisting operations under your control?

■■Does the process allow for engagement with project engineers to integrate aspects of concern into project design andimplementation plans?

■■Do you adopt, where appropriate, an integrated approach that combines social and environmental impact assessments?
■■Do you follow the mitigation hierarchy, favouring preventive over remediative action?
■■Are construction and other relevant contractors informed of ESIA requirements and management plans?
■■How do you engage affected communities, stakeholders and relevant experts in your impact assessments?
RJC Code of Practices Guidance 283

E Further information
Websites:
CommDev: The Oil, Gas and Mining Sustainable Community Development Fundwww.commdev.org
Equator Principles
http://equator-principles.com/
IFC, Performance Standards
www.ifc.org/performancestandards
International Association for Impact Assessment
https://www.iaia.org/

Publications:
Anglo American, Socio-Economic Assessment Toolbox (SEAT)
www.angloamerican.com/development/social/community-engagement/~/media/Files/A/Anglo-American-Plc/siteware/docs/
seat_toolbox2.pdf
Environmental Law Alliance Worldwide, Guidebook for Evaluating Mining Project EIAs (2010)www.elaw.org/files/mining-eia-guidebook/Full-Guidebook.pdf
IBLF and IFC, Guide to Human Rights Impact Assessment and Management (HRIAM) (2010)www.unglobalcompact.org/library/25
International Alert, Conflict Sensitive Business Practice: Guidance for Extractive Industries (2005)
www.international-alert.org/publications/conflict-sensitive-business-practice-guidance-extractive-industries-en
International Council on Mining and Metals (ICMM), Community Development Toolkit (2012)www.icmm.com/en-gb/publications/mining-and-communities/community-development-toolkit
ICMM, Good Practice Guidance for Mining and Biodiversity (2006)
www.icmm.com/en-gb/publications/biodiversity/mining-and-biodiversity-good-practice-guidance
ICMM, Integrating Human Rights Due Diligence into Corporate Risk Management Processes (2012)www.icmm.com/en-gb/publications/mining-and-communities/integrating-human-rights-due-diligence-into-corporate-riskmanagement-processes
IFC, Guidance Note 1: Assessment and Management of Environmental and Social Risks and Impacts (2012)www1.ifc.org/wps/wcm/connect/b29a4600498009cfa7fcf7336b93d75f/Updated_GN1-2012.pdf?MOD=AJPERES
IFC, A Guide to Biodiversity for the Private Sector
www.ifc.org/wps/wcm/connect/296ae980488551f5aa0cfa6a6515bb18/ESIA.pdf?MOD=AJPERES
IFC, Performance Standard 1: Assessment and Management of Environmental and Social Risks and Impacts (2012)www1.ifc.org/wps/wcm/connect/3be1a68049a78dc8b7e4f7a8c6a8312a/PS1_English_2012.pdf?MOD=AJPERESInternational Mining for Development Centre, Social Impact Assessment of Resource Projects (2012)https://im4dc.org/wp-content/uploads/2012/01/UWA_1698_Paper-02_Social-impact-assessment-of-resource-projects1.pdf
Rio Tinto, Why Human Rights Matter (2013)www.riotinto.com/documents/ReportsPublications/Rio_Tinto_human_rights_guide_-_English_version.pdf
UNICEF, Child Rights and Mining Toolkit (2017)www.unicef.org/csr/files/FINAL_Child_Rights_and_Mining_Toolkit_060217.pdf

284 RJC Code of Practices Guidance(COP 35) Artisanal and small-scale
mining and large-scale mining
A Definitions and applicability
This provision applies to RJC-certified mines with ASM outside their control on or near their area of operations. If the ASM
is under your control, it falls within your RJC certification scope and must conform with the COP. If you source gold, silver,
PGM, diamonds or coloured gemstones directly from ASM producers, COP 8 Sourcing directly from artisanal and small-scale
mining also applies.
Artisanal and small-scale mining (ASM) refers to formal or informal operations by individuals, groups, families or cooperatives that can involve up to hundreds of thousands of miners. ASM usually uses little capital and a lot of labour and is
carried out with minimal or no mechanisation (although it can involve small, fully mechanised operations). The exact definitionof ‘artisanal’ and ‘small’ mining may be stated by national legislation and categorised according to, for instance, a mining
organisation’s volume of production of ore or mineral, the size of its concession or the level of mechanisation.
Source:• OECD, OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk
Areas, Third Edition (2016)www.oecd.org/fr/daf/inv/mne/mining.htm

B Issue background
See COP 8 Sourcing directly from artisanal and small-scale mining for general information on ASM.
This COP 35 provision is specifically aimed at encouraging approaches to facilitate the coexistence of ASM and large-scale
mining (LSM) operations, and to promote the development of legal, orderly and viable ASM sectors in collaboration withhost communities and governments. These approaches can be led by governments, non-governmental organisations (NGOs),
development agencies or LSM companies; in all cases, they should be participatory and inclusive of local communities andASM workers.
The relationships between LSM and ASM operators can be complex and fragile. Each operator can pose a risk to the other (seebox ‘Hostile relations: influencing factors’), and relations can often descend into hostility and conflict, particularly when bothparties lay claim to the same resource and see the other’s claim as illegitimate.

Hostile relations: influencing factors
Many factors influence the risk of hostile relations between LSM and ASM, including the perception of who has the rightto mine the deposit and who was first on the ground, as well as whether or not the deposit is of marginal or central interest
to the LSM operator.
The type of ASM at hand is an important influencing factor—in particular, whether the ASM:
• is adhoc or organised;• is seasonal or permanent;• is the result of a mineral rush or a traditional activity, strongly grounded in local communities;• has ties to criminals or others with access to the means of violence or coercion; or• has suffered economic displacement.
The extent to which others are involved in supporting LSM–ASM relations, and how, can also influence the risk of hostility.
Peaceful relations, for example, are more likely where supportive and neutral third parties, such as NGOs, are involved,
where governments are seen as fair and active mediators and where legal frameworks exist for both LSM and ASM andallow for constructive engagement.

RJC Code of Practices Guidance 285

Companies ignore ASM at their own peril. Experience has shown that paying insufficient attention to ASM on or around LSM
can damage a mine’s social licence to operate and end up costing a lot of money. It can also increase the risks of:• poor community relations;• conflict between LSM and miners and communities;• disruption to LSM and ASM operations;• allegations of abuses and legal action;• human rights violations (both against ASM producers or by some members of the ASM sector against workers and othercommunity members); and• protection economies and entrenched corruption, including at different levels of government.
All of this poses a potential threat to mining operations and assets that needs to be understood and appropriately managed bylarge-scale companies using a human rights-based approach.
Wherever possible, companies should try and turn competition over resources or land into relationships that are mutually
beneficial. Many international stakeholders agree that the first step to a peaceful coexistence lies in formalising the ASM
sector. And while it is up to government to implement policy, large mining companies can also play a big part in supporting
reforms to formalise ASM—for example, supporting appropriate forms of workforce organisation or tackling other key issues
such as fair market access or improved environmental practices. In truth, responsible engagement with ASM generally involves
a mix of efforts to professionalise and formalise ASM along with strong engagement and consultation, joint planning andsensitive operations that can support local economic development (see Figure 35.1).
All in all, it is not an easy task to transform ASM into a positive force for socio-economic development that can comfortably
coexist with LSM. But ultimately, large companies bear the consequences of the relationship if they cannot work with local
miners and affected communities.
These consequences can last beyond a mine’s lifetime. ASM can increase after a large-scale mine closes, ex-employees canturn to ASM, existing artisanal miners expand their operations or new artisanal miners arrive. These miners may rework
tailings that were left behind, work lower grade areas that were deemed uneconomic for LSM operations or work downstream
waterways. By engaging with ASM producers before closure, and involving them in the closure-planning process, departing
companies may be able to identify innovative approaches to rehabilitation that both benefit the company’s legacy andstrengthen the livelihood base for local miners and communities.

286 RJC Code of Practices Guidance1 Understandcommunities
including miners, haulers,rock breakers, millers,panners, casual labourers,
buyers, suppliers, etc.

2 Consultstakeholders
at every stage during themine life cycle, from
exploration to closure

3 Manage
displacement
for both legal and illegal ASM

Responsible
LSM
engagementwith ASM

4 Professionalise
activities
for both legal and illegal ASM

Identify all stakeholders in
ASM ‘hierarchy’
Understand their structure
and interrelationships

Identify potential LSM impacts andcreate a joint plan to manage them
Build trust between key stakeholders
Build capacity to engage

Develop alternative livelihood
programmes or create viable zones
on the LSM concession for ASM
Build capacity on key issues
Improve occupational health andsafety management
Promote safer and more eco-friendly
mining and reﬁning methods
Support workforce organisation
Provide processing services to ASM

ASM5 Usesensitive security

6

Adopt a conﬂict avoidance andresolution approach to mine security

that is effective but sensitive
to local communities

Consider the full impact of installingsecurity forces, and beware corruption

Optimisedevelopment

Identify opportunities to support local
economic development, for example:

through operations andstrategic planning» Employ ASM miners for contracted
technical activities;» source food or other materials locally;» employ and train local people;» support local entrepreneurs; and» support joint projects to improve local
physical and social infrastructure

7 Plan for closurein collaboration with
ASM communities

Engage ASM producers before closure,and plan for closure together
Look for rehabilitation options that are
mutually beneﬁcial

Figure 35.1. Different types of responsible LSM engagement with ASM

RJC Code of Practices Guidance 287

C Key regulations, standards and initiatives
International initiatives
For a summary of international initiatives that support ASM, see ‘Key regulations, standards and initiatives’ under the guidance
for COP 8 Sourcing directly from artisanal and small-scale mining.

National law
Many (but not all) countries have legislative or regulatory frameworks to govern domestic ASM. RJC members are expected to
be aware of, and comply with, all applicable laws and regulations affecting both large- and small-scale prospecting and mining
in all jurisdictions of operation.

D Implementation guidance
COP 35.1A: Engagement
Members in the mining sector shall, where artisanal and small-scale mining (ASM) not under their control occurs withinor nearby their areas of operation:a. Engage directly with the ASM community as appropriate and seek to maintain a continuous dialogue with themas a distinct group within the stakeholder engagement programme (COP 32 Stakeholder engagement),social andenvironmental impact assessment and ongoing risk management activities (COP 34 Impact assessment).

Points to consider:• Make a relevant manager responsible for relationships with ASM. This will often be the person responsible for broader
community engagement and development programmes.
• See guidance for COP 32 Stakeholder engagement for general information on engaging communities. ASM communities will
have different risks and opportunities for development and may need to be engaged and assessed as a distinct group. You
should be incorporating ASM into your ongoing risk management activities by, for example:•

including ASM as a specific topic in your impact assessment (see COP 34 Impact assessment);•

determining the significance of ASM as a risk to the mine and vice versa, and what risk controls may be necessary;•

articulating an ASM policy and management plan wherever you identify a significant risk—this can be a stand-alone policy
and plan or part of a broader framework; and•establishing, where necessary, an ASM task force and action plan, typically involving staff from security, community
development, sustainability and corporate affairs.

• Be aware that you may need experienced and expert external help—for example, from private experts or specialist nonprofit organisations—to develop the right policies, training, strategies, plans and actions.
• Include ASM considerations in your mine closure planning (see COP 42 Mine rehabilitation and closure) and involve ASM
producers in the process of planning for post-closure rehabilitation, community development and local livelihoods so that it
benefits your legacy.
• Adopt a conflict avoidance and resolution approach to mine security that is effective but sensitive to local communities and
ASM groups. For example, ensure that the presence of security forces who are there to minimise ‘ASM theft’ don’t actually
profit from theft through corruption, or resort to inappropriate use of force or firearms, or otherwise create conflict (seeCOP 13 Security).
• Where legal restrictions prevent or limit your direct or indirect engagement with ASM, work with the appropriate
authorities to assess and define routes to maintain a dialogue with local ASM communities.

288 RJC Code of Practices GuidanceCOP 35.1B: Professionalisation and formalisation
Members in the mining sector shall, where artisanal and small-scale mining (ASM) not under their control occurs withinor nearby their areas of operation:b. Actively participate in initiatives, including multi-stakeholder ones, that enable the professionalisation, formalisation andcertification of ASM, as appropriate to the situation.

Points to consider:• If ASM is not recognised as a legal activity, try to work with governments on approaches to formalise ASM, recognising that
this may not always be possible.
• Focus on initiatives that help to organise, formalise, professionalise and legalise ASM. And make sure these are designed inconsultation with key stakeholders, including ASM producers themselves (see box ‘Inclusive initiatives’).
• Consider entering into an agreement (local law permitting) with the ASM producers operating in your area to give themlegal access to your land. Include the ASM producers themselves in drawing up this agreement, and make sure it includes theconditions and practices for both parties, allowance for remedial actions, and conditions under which either you or the ASM
producer may withdraw from the relationship.

Inclusive initiatives
There are many different ways for you to establish a collaborative, inclusive initiative that can help organise, formalise,
professionalise and legalise ASM. Some examples are listed below.
• Establish a formal partnership with ASM producers working on or near your area of operations.
• Work with regulatory authorities to identify zones where the legal mining title can be passed over to legal and organised
ASM producers.
• Provide ASM financing (loans) for technical and other improvements.
• Advise and train ASM producers on key issues, such as occupational health, reclamation, processing methods, businessand financial management or explosives management.
• Help ASM producers determine mineral reserves; then support access to financing for them to mine them.
• Provide emergency response training and support for ASM operations.
• Make processing services available to ASM producers, or build their capacity to do their own processing with improved
technology.
• Liaise with government departments, NGOs, trade unions and international agencies to get additional support.
• Offer ASM producers guidance on marketing and commercialisation, including fair trade arrangements.
• Support the establishment of traceability and/or chain of custody systems that ensure security of shipments and enable
data collection on ASM gold.
• Proactively support alternative livelihoods, economic development and other improvements in local ASM communities.
This can include reusing closed ASM sites for other activities.
• Support the wider community by locally sourcing as many goods and services as possible.
• Make the elimination of the worst forms of child labour a condition of engagement.
• Support gender awareness and empowerment programmes to improve women’s conditions in ASM communities.
Appendix 1 of the Supplement on Gold to the OECD Due Diligence Guidance provides further examples.
Sources:• IFC, Working Together: How Large-Scale Mining Can Engage with Artisanal and Small-Scale Miners (2008)
www.commdev.org/wp-content/uploads/2015/06/Working-together-How-large-scale-mining-can-engage-withartisanal-and-small-scale-miners.pdf• OECD, OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk
Areas, Third Edition (2016)www.oecd.org/fr/daf/inv/mne/mining.htm

RJC Code of Practices Guidance 289

• Be careful not to create perverse incentives that can exacerbate rather than solve a problem. For example, incentives tobackfill abandoned ASM pits can end up driving the digging of new pits simply to collect the benefits for backfilling themafterwards.
• It can be useful to calculate in monetary terms the potential benefits for all parties involved that can come from theprofessionalisation and formalisation of ASM miners. This can be used to help to identify win-win scenarios. For
instance, initiatives to process ASM ore can result in greater recovery rates and therefore profits for ASM miners, while
simultaneously eliminating mercury use and reducing your liability for future clean-up bills, and also generating fair pricing
for ASM gold sales.
• Consider supporting the certification of ASM through existing schemes like the Fairmined or Fairtrade standards for gold or
the Maendeleo Diamond Standards; if appropriate, support COP certification (for example, in the case of small- and mediumscale enterprises).
• Note that the CRAFT Code or the Swiss Better Gold Association’s Better Gold Initiative can also be used as a framework toshow progressive compliance for those ASM producers who are not yet able to achieve certification.

Check:■■Do you know if there is any ASM in or near your areas of operation?
■■Do you have a responsible manager in charge of your relationships with ASM?
■■If there is ASM, can you show how you engage with the ASM producers and how well you understand their operations
and relationships with the community?

■■What initiatives to support the professionalisation and formalisation of ASM producers have you been involved with,and how?

E Further information
Websites:
Alliance for Responsible Mining (ARM)
www.responsiblemines.org
ARM, CRAFT Codewww.craftmines.org
The Artisanal and Small-Scale Mining Knowledge Sharing Archive (including the online resources previously available throughthe Communities and Small-Scale Mining (CASM) initiative)
www.artisanalmining.org
Artisanal Gold Council (AGC)
www.artisanalgold.org/homeColoured Gemstones Working Group (CGWG)
https://coloured-gems.org
CommDev, Artisanal and Small-Scale Mining (ASM)
https://www.commdev.org/topics/artisanal-and-small-scale-mining/
Diamond Development Initiative (DDI), Artisanal Mining
www.ddiglobal.org/artisanal-mining/issues
Solidaridad Gold Programmewww.solidaridadnetwork.rg/supply-chains/gold
Swiss Better Gold Association (SBGA)
www.swissbettergold.ch

290 RJC Code of Practices GuidancePublications:
ARM, Legalization Guide for Artisanal and Small-Scale Mining (ASM): Draft for Discussion (2011)www.responsiblemines.org/wp-content/uploads/2018/05/ARM_Series5_Legalisation_guide_ASM.pdf
ARM, Rock-Solid Changes for Responsible Mining (2011)www.responsiblemines.org/wp-content/uploads/2017/10/RSC_FINAL_web_low.pdf
DDI, Mechanisation of Artisanal Alluvial Diamond Mining: Barriers and Success Factors (2010)www.ddiglobal.org/login/resources/mechanisation-alluvial-artisanal-diamond-mining.pdf
Human Rights Watch, A Poisonous Mix: Child Labor, Mercury, and Artisanal Gold Mining in Mali (2011)www.hrw.org/sites/default/files/reports/mali1211_forinsertWebUpload_0.pdf
IIED, Responding to the Challenge of Artisanal and Small-Scale Mining: How Can Knowledge Networks Help? (2013)
pubs.iied.org/16532IIED.html?c=energy/mining
Intergovernmental Forum on Mining, Minerals, Metals and Sustainable Development, Global Trends in Artisanal and SmallScale Mining (ASM): A Review of Key Numbers and Issues (2017)www.iisd.org/sites/default/files/publications/igf-asm-global-trends.pdf
International Finance Corporation, Working Together: How Large-Scale Mining Can Engage with Artisanal and Small-Scale
Miners (2008)
www.commdev.org/wp-content/uploads/2015/06/Working-together-How-large-scale-mining-can-engage-with-artisanaland-small-scale-miners.pdf
International Labour Organization, Facts on Small-Scale Mining
www.ilo.org/wcmsp5/groups/public/---dgreports/---dcomm/documents/publication/wcms_067582.pdf
OECD, OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas,
Third Edition (2016)www.oecd.org/fr/daf/inv/mne/mining.htm
OECD, Responsible Supply Chains in Artisanal and Small-Scale Gold Mining: FAQ (2016)www.oecd.org/daf/inv/investment-policy/FAQ_Sourcing-Gold-from-ASM-Miners.pdf
Solidaridad South America, Minera Yanaquihua (MYSAC)
www.solidaridadnetwork.org/content/minera-yanaquihua-mysac
UNEP, Analysis of Formalization Approaches in the Artisanal and Small-Scale Gold Mining Sector Based on Experiences in
Ecuador, Mongolia, Peru, Tanzania and Uganda (2012)https://wedocs.unep.org/bitstream/handle/20.500.11822/11357/Formalization_Document_Final_June_2012.
pdf?sequence=1&isAllowed=y
The World Bank, Gender Dimensions of Artisanal and Small-Scale Mining: A Rapid Assessment Toolkit (2012)
commdev.org/userfiles/Gender_and_ASM_Toolkit.pdf

RJC Code of Practices Guidance 291

(COP 36) Resettlement
A Definitions and applicability
This provision applies to members in the mining sector where resettlement is planned or occurring. This includes situations
where resettlement has been planned or started since you joined the RJC or since your last verification assessment, whicheveris most recent. The COP does not require retrospective conformance.
Note: resettlement of indigenous peoples may also trigger the requirement for a free, prior and informed consent (FPIC)
process (see COP 33 Indigenous peoples and free, prior and informed consent).
Expropriation is the action by the state or an authority of taking property from its owner for public use or benefit.
Involuntary resettlement refers to situations when affected people or communities do not have the right to refuse landacquisition or restrictions on land use that result in physical or economic displacement. This happens in cases of lawful
expropriation or temporary or permanent restrictions on land use. It can also happen during negotiated settlements if
negotiations fail.
Resettlement refers both to physical displacement (relocation or loss of shelter) and economic displacement (loss of assets oraccess to assets that leads to loss of income sources or other means of livelihood) that happens when an RJC member acquires
land or places new restrictions on land use.
Vulnerable groups are characterised by their higher risk and reduced ability to cope with shock or negative impacts. Theirvulnerability may be based on socio-economic condition, gender, age, disability, ethnicity or other criteria that influencepeople’s ability to access resources and development opportunities. It is always specific to the particular location and time.
Source:• International Finance Corporation (IFC), Performance Standard 5: Land Acquisition and Involuntary Resettlement (2012)www1.ifc.org/wps/wcm/connect/3d82c70049a79073b82cfaa8c6a8312a/PS5_English_2012.pdf?MOD=AJPERESB Issue background
Mines operate where economically viable mineral deposits are physically located and are sometimes developed under landthat is already being used (for example, for growing crops, grazing animals, collecting natural resources, providing housing,among other uses). In these cases, developing a mine will require the resettlement of local households, communities, business,
commercial property, or other economic or cultural activities. If such resettlement is involuntary, and improperly managed,
it can result in long-term hardship for those affected, as well as environmental damage and social stress in areas to which
they have been displaced. That is why most mining standards, including the COP, demand that companies avoid involuntary
resettlement altogether or, in exceptional circumstances where it is unavoidable, take appropriate measures to both mitigate
adverse impacts on displaced persons and host communities and to restore the livelihoods of those affected.
Negotiated settlements to acquire land rights or access can help avoid expropriation at mining projects and eliminate the needfor a state authority to remove people forcibly. Such settlements can usually be achieved by offering affected people fair andappropriate compensation and other incentives or benefits. In-kind compensation should always be considered in lieu of cash,for example land-for-land compensation for communities whose livelihoods are land-based. In all cases, resettlement should atleast restore, and preferably improve, the livelihoods and economic well-being of those affected.
A 2015 study by the International Council on Mining and Metals (ICMM) underscores the importance of the planning andnegotiating process, stating that ‘resettlement and land acquisition … remains a very challenging area for companies. Many
projects do not begin planning resettlement activities early enough. Nor do they invest enough human or financial resources inensuring impacts are assessed and mitigated, and that benefits are shared in a sustainable way.’1
Negotiations will also need to include diverse measures to allow the effective participation of disadvantaged or vulnerable
groups, including all those using the land whether they have a legal right to do so or otherwise (for example, artisanal and smallscale miners). The resettlement negotiations should be based on a resettlement plan that includes a full impact assessment,
and which should be shared in an open and transparent way.

1

ICMM, Land acquisition and resettlement: Lessons learned (2015)

292 RJC Code of Practices GuidanceKey issues to consider beyond compensation, livelihoods and economic well-being include housing and living conditions at
new sites, as well as social and cultural continuity of the community. In some cases, resettlement includes developing agreed
strategies to protect or safely move sites or objects of special historical, spiritual or cultural significance. Sometimes it ispossible for people to return to the land after the mining project is closed; considering this option should form part of thenegotiations.

C Key regulations, standards and initiatives
International standards
The International Finance Corporation (IFC) Environmental and Social Performance Standards (‘IFC Performance Standards’,
www.ifc.org/performancestandards) define IFC clients’ responsibilities for managing environmental and social risks. A global
benchmark on good practice, these comprise eight standards, including:• Performance Standard 5: Land Acquisition and Involuntary Resettlement, which provides the definitive international
standard for resettlement. Explicitly referenced in the COP, the IFC standard aims to:•

avoid forced eviction;•

avoid or minimise involuntary resettlement wherever possible by exploring alternative project designs;•

anticipate and avoid (and, where unavoidable, minimise) the adverse social and economic impacts of resettlementby compensating loss of assets and implementing resettlement activities with appropriate disclosure of information,
consultation and the informed participation of those affected;•

improve, or restore, the livelihoods and standards of living of displaced persons; and•improve the living conditions of physically displaced persons by providing adequate housing with secure tenure atresettlement sites.

An IFC guidance note2 offers companies further guidance on implementing the standard, including guidance on what to do if
resettlement is a government-led activity.
Note that the IFC standard does not apply to resettlement resulting from voluntary land transactions (that is, market
transactions in which the seller is not obliged to sell and the buyer cannot resort to expropriation or other compulsory
procedures if negotiations fail).
Beyond IFC Performance Standard 5, companies and states are also required to avoid forced evictions through a range ofinternational legal instruments that protect the right to adequate housing (for example, the Universal Declaration of Human
Rights, the International Covenant on Economic, Social and Cultural Rights and the Convention on the Rights of the Child).
In 2007, UN Human Rights published a set of guidelines (the UN Basic Principles and Guidelines on Development-Based
Evictions and Displacement)3 to address the human rights implications of development-linked evictions and related
displacement and help countries develop policies and legislations to prevent forced evictions. These guidelines identify a seriesof measures and procedures that should be taken to ensure development-based evictions do not contravene international
human rights.

D Implementation guidance
COP 36.1: Resettlement
Members in the mining sector shall avoid involuntary resettlement. Where resettlement is unavoidable, it shallbe minimised and appropriate measures to mitigate adverse impacts shall be carefully planned and implemented,
consistent with International Finance Corporation (IFC) Performance Standard 5. This includes consideration ofdisadvantaged and vulnerable groups.

Points to consider:• Establish a resettlement policy and procedures, consistent with IFC Performance Standard 5 (this must be in place before
you negotiate any resettlements).

2

IFC, Guidance Note 5: Land Acquisition and Involuntary Resettlement (2012)www.ifc.org/wps/wcm/connect/4b976700498008d3a417f6336b93d75f/Updated_GN5-2012.pdf?MOD=AJPERES

3

UN Human Rights, UN Basic Principles and Guidelines on Development-Based Evictions and Displacement (2007)
http://www.ohchr.org/Documents/Issues/Housing/Guidelines_en.pdf

RJC Code of Practices Guidance 293

• Given the complexity of resettlement and potential for long-term hardship and impoverishment for affected communities
and persons, consider working with experts for your planning and implementation.
• Before starting resettlement negotiations, consider all feasible alternative project designs that could avoid (or where
unavoidable, minimise) physical and economic displacement, while balancing environmental, social and financial costs andbenefits.
• Resettlement usually involves three phases of activities: planning, negotiation and resettlement, which are all underpinned
by stakeholder engagement and monitoring and evaluation throughout (see Figure 36.1).

Stakeholder/ community engagement
Planning

Negotiation

Resettlement

Institutional and legal
framework, best practiceCompensation

Collect socio-economic
baseline data
Assessing project impacts andminimising displacementThenegotiations
process

Consider feasible
alternative project designs
Develop a compensation
framework

Livelihood restoration

Develop a resettlement action plan
and livelihood restoration plan
Establish a grievancemechanismPhysical resettlement

Consideration ofcultural heritage

Monitoring and evaluation
Figure 36.1. The land access and resettlement process
Source: International Council on Mining and Metals (ICMM), Land Acquisition and Resettlement: Lessons Learned (2015)
www.icmm.com/en-gb/publications/mining-and-communities/land-acquisition-and-resettlement-lessons-learned• During the planning phase:•Collect the information you need as outlined in Figure 36.1 and in alignment with COP 34 Impact assessment. This should
include a full census and socio-economic baseline to identify all those who will be displaced by the project and determine
who will be eligible for compensation and assistance.

•

The most complex resettlement issues can be related to displacement of economic activities, such as raising crops, grazing
livestock, gathering of natural resources, or artisanal and small-scale mining. Ensure that this is adequately considered inyour planning and subsequent phases.

•

Establish effective engagement with all affected persons, groups and communities, including disadvantaged andvulnerable groups, including those who don’t hold formal legal land rights, whether or not they have a claim to land that isrecognised under national law.

•

Create an accessible complaints or grievance mechanism for affected stakeholders to raise concerns, challenge theeviction and seek redress. This will need to remain in place throughout the negotiation and resettlement phases, as well as
afterwards as part of the monitoring process.

• During the negotiation phase, consult with affected communities to:•Agree on a resettlement action plan (for physical displacement) or livelihood restoration plan (for economic displacement).

•

Establish the eligibility criteria for the various forms of resettlement assistance and compensation. Set out thecompensation payments in accordance with national guidelines or, if there are none, set out the methodology that you willuse. This should include cut-off dates for establishing eligibility.

•

Note that adequate compensation, social infrastructure and all relevant conditions for resettlement should be readybefore the actual resettlement takes place and the mining company relinquishes control/ownership of the land.

294 RJC Code of Practices Guidance• During the resettlement:•

Communicate agreed compensation criteria, and apply these consistently, to all those affected.

•

Where appropriate, get local government officials and independent observers to be present during the resettlement.

• After the move:•

Establish monitoring and evaluation procedures commensurate with the project’s risks and impacts.

• Throughout all three phases of resettlement:•

Be transparent and inclusive. In practice, that means making sure you inform, consult and involve all those affected
before, during and after the move; and document all engagement processes and outcomes.

•

Seek improvement opportunities. Look for any opportunity to use resettlement as a way for displaced groups to derive
development benefits.

•

Adhere to IFC Performance Standard 5. This includes ensuring that each type of affected stakeholder (including hostcommunities) is appropriately considered and compensated, according to the type of displacement and whether or notthey hold formal land rights. (See IFC Performance Standard 5 and its accompanying guidance for more information:www.ifc.org/ps5.)

Check:■■Have you undertaken all appropriate measures to avoid any involuntary resettlement?
■■If resettlement is unavoidable, have you undertaken measures to mitigate adverse impacts consistent with IFC
Performance Standard 5, including appropriate disclosure, compensation standards, census data, monitoringprocedures, etc.?

E Further information
Websites:
The University of Queensland, MiningResettlement.org
www.miningresettlement.org

Publications:
ICMM, Land Acquisition and Resettlement: Lessons Learned (2015)
www.icmm.com/en-gb/publications/mining-and-communities/land-acquisition-and-resettlement-lessons-learned
IFC, Guidance Note 5: Land Acquisition and Involuntary Resettlement (2012)https://www1.ifc.org/wps/wcm/connect/4b976700498008d3a417f6336b93d75f/Updated_GN5-2012.pdf?MOD=AJPERES
IFC, Handbook for Preparing a Resettlement Action Plan (2002)
www.ifc.org/wps/wcm/connect/topics_ext_content/ifc_external_corporate_site/sustainability-at-ifc/publications/publications_handbook_rap__wci__1319577659424
IFC, Performance Standard 5: Land Acquisition and Involuntary Resettlement (2012)https://www1.ifc.org/wps/wcm/connect/3d82c70049a79073b82cfaa8c6a8312a/PS5_English_2012.pdf?MOD=AJPERESUN Human Rights, Basic Principles and Guidelines on Development-Based Evictions and Displacement (2007)
www.ohchr.org/Documents/Issues/Housing/Guidelines_en.pdf

RJC Code of Practices Guidance 295

(COP 37) Emergency response
A Definitions and applicability
This provision applies to RJC members in the mining sector.
An emergency is an abnormal occurrence that poses a threat to the safety or health of employees, contractors, visitors,
customers or local communities, or that can damage assets or the environment.
The mining lifecycle is the series of phases over the course of a mining project going from exploration, feasibility studies andconstruction through production to mine closure, rehabilitation and post-closure.

B Issue backgroundNo industry is completely free of risk when it comes to emergencies and natural disasters. In mining, emergencies can be
operational, environmental or social (see Figure 37.1).

Environmental

Operational

SocialGround subsidence

Chemical emissions
and spills

Political conﬂict

ErosionNatural disasters, such as
earthquakes or hurricanes
Extreme weather,including ﬂoods
Long-term environmental
damageTransportation failures

Community unrest
Terrorism

Pipeline hazards
Fires and explosions
Tailings and waste rockspillsFigure 37.1. Three types of mining emergencies
Emergencies can arise at active mines as well as those that have been closed or rehabilitated. In all cases, a fast and effective
response can be the most important factor in limiting injury to people as well as damage to property and the environment.
That makes emergency preparedness—including ensuring the ability to reduce impacts should any incident happen—a criticalcomponent of any business.
In part, preparedness involves establishing the internal mechanisms and procedures needed to effectively plan and implement
emergency response. It also means working with local communities to improve awareness of the potential risks of emergencies
and strengthen community preparedness.
Experience shows that a well-informed, well-prepared community is better able to orchestrate a fast and effective response to
an incident, and to deal with the aftermath too.

296 RJC Code of Practices GuidanceC Key regulations, standards and initiatives
International standards
Since 1988, UN Environment (formerly UNEP) has led the Awareness and Preparedness for Emergencies atLocal Level(APELL) programme (www.unenvironment.org/explore-topics/disasters-conflicts/what-we-do/preparedness-and-response/
awareness-and-preparedness) to help people prevent, prepare for and respond appropriately to accidents and emergencies.
APELL is essentially a 10-step process for developing emergency response plans that involves local communities, companies,
governments, emergency responders and others. This process creates awareness of hazards in communities close to industrial
facilities, encourages risk reduction and mitigation and develops preparedness for emergency response.
In 2001, working with the International Council on Metals and the Environment (ICME), UN Environment published its APELL
for Mining guidance to describe how the APELL process can be applied to the mining industry.1
APELL for Mining (http://wedocs.unep.org/handle/20.500.11822/8093) offers companies a structured approach for engaging
local communities and authorities in emergency planning that can help them better identify risk reduction measures andorganise overall emergency response. It is particularly useful in thinking about emergencies with the potential for off-site
impacts, which require joint planning and preparedness.
In 2005, to strengthen use of APELL within the mining industry, ICME’s successor, the International Council on Mining andMetals (ICMM) and UN Environment published the Good Practice in Emergency Preparedness and Response.2 This publication
goes through each step of the APELL process, outlining key tasks and using diverse case studies to illustrate how these can be
done.
Beyond the APELL process, the International Organization for Standardization (ISO) includes requirements on emergency
preparedness and response in its ISO 14001:2015 standard on environmental management systems(www.iso.org/iso-14001-environmental-management.html). The standard, which was updated in 2015,
now specifically requires certified companies to:• establish action plans to remove or mitigate risks relating to emergencies that are commensurate with the type of risk
involved and level of potential impact;• establish action plans to respond to emergency situations themselves; and• review plans periodically and revise them accordingly.
Other international instruments that include requirements on emergency preparedness and response include:• the International Cyanide Management Code for the Gold Mining Industry (www.cyanidecode.org), which focuses on
emergencies involving cyanide and includes requirements for developing emergency response strategies and capabilities,
including informing and consulting the public on these (see COP 40 Cyanide); and• the Mining Association of Canada (MAC, http://mining.ca), which requires its members to develop, maintain and test
emergency preparedness plans, and to engage employees and the public on these issues. This is through the Towards
Sustainable Mining (TSM) Crisis Management and Communications Planning Protocol.3

National law
Most countries have legislation that caters for preparedness and response to emergency situations within an industrial setting.
This often includes requirements for emergency plans to be in place before issuing a permit for a new facility, for example aspart of the environmental impact assessment requirements.
In some cases, governments or other regional authorities also make community consultation a compulsory componentof emergency planning. For example, the European Commission’s Seveso Directive (last updated in 2012) covers all
establishments using high levels of dangerous substances and requires these to, among other things, create emergency plans
and involve the public in decision-making.

1

UN Environment, APELL for Mining: Guidance for the Mining Industry in Raising Awareness and Preparedness for Emergencies at Local Level (2001)
http://wedocs.unep.org/handle/20.500.11822/8093

2

ICMM and UN Environment, Good Practice in Emergency Preparedness and Response (2005)
www.icmm.com/website/publications/pdfs/health-and-safety/good-practice-emergency-preparedness-and-response3

https://mining.ca/sites/default/files/Crisis%20Management-EN%20%28Nov%202018%29.pdf

RJC Code of Practices Guidance 297

D Implementation guidance
COP 37.1: Emergency response
Members in the mining sector shall develop and maintain emergency response plans in collaboration with potentiallyaffected communities, workers and their representatives, and relevant agencies, in accordance with UN Environment
guidance on Awareness and Preparedness for Emergencies at Local Level (APELL) for Mining. This shall be developedwith COP 23.2 (Health and safety) and should include due consideration of any emergencies arising within the facility
that have the potential to impact off-site areas.

Points to consider:• Implementing the APELL process starts with establishing a formal co-ordinating group as a mechanism for managing theinteraction between all those involved in preventing or responding to emergencies and ensuring a collaborative, coordinated and inclusive approach to emergency response planning.
• Make sure your co-ordinating group includes members of the mine’s management team, as well as representatives of local
authorities and emergency response agencies, community leaders and workers’ representatives (see Figure 37.2).

Local
Government
Dialogue withcompany
Maintain local
response teams

Company

Neighbours

Have policies andprocedures, to include:

Dialogue withcompany» Assess hazards and risks,
and their reduction

Respond to hazards
and risks» Work out outcomes forresidual risks and plan
their response

Know avoidance andescape measures» Dialogue with community» Test, review change

Local Emergency
Response Teams

NGOs
Dialogue withcompany
Assistdevelopment ofresponse andremediation
strategies

Participate in test,
and review

Local
Emergency
Planning
Co-ordinatingGroup

Dialogue with company
Be informed of hazards
and risks
Joint development ofresponse procedures
Participate in test,
and review

The Plan
Figure 37.2. Local emergency planning co-ordinating group
Source: ICMM and UN Environment,Good Practice in Emergency Preparedness and Response (2005)
www.icmm.com/en-gb/publications/health-and-safety/good-practice-in-emergency-preparedness-and-response

298 RJC Code of Practices Guidance• Focusing on emergencies with the potential for off-site impacts, follow the 10steps of the APELL process, as outlined in the2001 APELL for Mining handbook (http://wedocs.unep.org/handle/20.500.11822/8093), and summarised in Table 37.1.

Table 37.1. Ten steps to implement the APELL process
Step1

Identify the emergency response participants and establish their roles,
resources and concerns.

2

Evaluate the risks and hazards that may result in emergency situations in thecommunity and define options for risk reduction.

3
4
5
6
7
8
9
10

Phase IEngaging stakeholders
Phase II
Understanding hazards
and risks

Have participants review their own emergency plan for adequacy relative to acoordinated response, including the adequacy of communication plans.
Identify the required response tasks not covered by the existing plans.

Communicate,
inform andeducatecommunity
members
throughout

Phase III

Match these tasks to the resources available from the identified participants.

Preparedness planning

Make the changes necessary to improve existing plans, integrate them into an
overall emergency response and communication plan and gain agreement.

Commit the integrated plan to writing and obtain approvals from local
governments.
Communicate the integrated plan to participating groups and ensure that all
emergency responders are trained.

Establish procedures for periodic testing, review and updating of the plan.
Communicate the integrated plan to the general community.

Phase IV
Implementing,disseminating andtestingPhase V
Maintaining APELL

Source: ICME and UN Environment. APELL for Mining. (2001)

Check:■■Have you identified all potential emergencies that could have off-site impacts?
■■Have you established one or more emergency response plans in collaboration with key stakeholders?
■■Do your plans follow the guidance provided by the APELL for Mining handbook?
■■Has a formal co-ordinating group been established to implement the APELL process?
■■Are procedures in place for testing the plan?
■■Has the plan been communicated to local communities?

RJC Code of Practices Guidance 299

E Further information
Websites:
UN Environment, Resource Efficiency
www.unep.org/resourceefficiency

Publications
ICMM and UN Environment, Good Practice in Emergency Preparedness and Response (2005)
www.icmm.com/en-gb/publications/health-and-safety/good-practice-in-emergency-preparedness-and-response
MAC, Towards Sustainable Mining: Crisis Management and Communications Planning Protocol (2017)
http://mining.ca/sites/default/files/documents/TSM-Crisis-Management-and-Communications-Planning-ProtocolMarch-2017.pdf
Mining Association of Canada (MAC), Crisis Management and Communications Planning Reference Guide (2016)
http://mining.ca/documents/crisis-management-and-communications-planning-reference-guide
UN Environment, APELL for Mining: Guidance for the Mining Industry in Raising Awareness and Preparedness for
Emergencies at Local Level (2001)
https://wedocs.unep.org/handle/20.500.11822/8093

300 RJC Code of Practices Guidance(COP 38) Biodiversity
A Definitions and applicability
This provision applies to all RJC members in the mining sector and to mines, mining and related infrastructure such as roads,
rail lines, power lines and ports.
Biodiversity is the variability among living organisms from all sources including, among others, terrestrial, marine and aquatic
ecosystems and the ecological complexes of which they are part; this includes diversity within species, between species and of
ecosystems. Biodiversity encompasses all living things, from human beings to micro-organisms and the habitats in which theylive. It also includes the genetic material within individual species.
Critical habitats are areas with high biodiversity value, including habitats of significant importance to critically endangered or
endangered species or endemic or restricted-range species, as well as habitats supporting globally significant concentrationsof migratory or congregatory species, highly threatened or unique ecosystems and areas associated with key evolutionary
processes.
Ecosystem services are the benefits people get from ecosystems. They include provisioning services, such as food and water;
regulating services, such as regulation of floods, drought, land degradation, and disease; supporting services, such as soil
formation and nutrient cycling; and cultural services, such as recreational, spiritual, religious and other non-material benefits.
Key Biodiversity Areas (KBAs) are sites contributing significantly to the global persistence of biodiversity. They represent theworld’s most important sites for biodiversity conservation and are identified nationally using standard criteria and thresholds
set by the International Union for Conservation of Nature (IUCN). KBAs typically include areas of critical habitat (see below).
The mining lifecycle is the series of phases over the course of a mining project going from exploration, feasibility studies andconstruction through production to mine closure, rehabilitation and post-closure.
Mitigation hierarchy involves prioritising options in a sequential way, starting with action to avoid impacts, followed by action
to minimise them. If the negative environmental impacts are significant, it can also be appropriate to restore and, finally, offset
them (see Figure 24.2 Environmental management).
A protected area is a geographically defined area that is legally designated or regulated and managed to achieve specificconservation objectives.
World Heritage sites are sites established under the World Heritage Convention of 1972.
Sources:• Biodiversity A to Z
www.biodiversitya-z.org• Convention on Biological Diversity
www.cbd.int/• International Finance Corporation (IFC), Guidance Note 6: Biodiversity Conservation and Sustainable Management of Living
Natural Resources (2018)www.ifc.org/wps/wcm/connect/a359a380498007e9a1b7f3336b93d75f/GN6_November+20+2018+.pdf?MOD=AJPERES• IFC, Performance Standard 6: Biodiversity Conservation and Sustainable Management of Living Natural Resources (2012)www1.ifc.org/wps/wcm/connect/bff0a28049a790d6b835faa8c6a8312a/PS6_English_2012.pdf?MOD=AJPERES• International Union for Conservation of Nature (IUCN)
www.iucn.org

B Issue background
Mining is one of a small number of industries with little or no control over where to locate its operations for it can only succeed
commercially where economically viable mineral deposits exist. Sometimes, such deposits lie in relatively highly populatedareas, industrial settings or regions that have been intensively farmed for many decades, where biodiversity is limited. But
sometimes, viable deposits lie in environmentally sensitive areas, including remote, previously unexplored or undeveloped
areas that are rich in biodiversity. Without careful planning, mining projects in these areas can have significant adverse impacts
on biodiversity.

RJC Code of Practices Guidance 301

In some cases, there is no way to reconcile mining activities with local biodiversity conservation. But in other cases, goodenvironmental management can help the development of a mine which supports conservation. Mining baseline studies in
unexplored areas can help collect data on the presence and distribution of species and habitats. There are a few examples ofcompanies partnering with non-governmental organisations (NGOs) to conserve species or ecosystems. Applying these types
of approaches more systematically across the sector could bring much needed resources to conservation.
In all cases, opportunities for mitigating biodiversity impacts vary significantly from one operation to another and depend not
only on the mine itself but also on its associated infrastructure, including roads, rail lines, power lines, ports, in-migration andresettlement. The mitigation hierarchy (avoid, minimise, restore, offset) has been developed as a tool for achieving ‘no net loss’
or a ‘net gain’ in biodiversity. Yet to be widely adopted by the mining industry, there are some companies that have been at theforefront of voluntarily applying offsets and other good practices associated with the mitigation hierarchy.
The extent to which biodiversity impacts need to be addressed ultimately depends on the presence and significance of local
biodiversity. Some of the criteria to determine whether a site is of local, regional, national or international importance include
the species endemism, rarity, population size and fragility, as well as their importance in the local and social context. The size of
habitats and value of ecosystem services are other criteria. Applying these criteria is a matter of professional judgement andrequires the involvement of a trained ecologist. Evaluation can be very complex in some countries or in new areas such as deepseas, where there is little information to evaluate biodiversity comparatively. In such circumstances, extensive fieldwork may
be needed to better understand the relative value of operational sites.
Several systems exist for designating areas of biodiversity importance and understanding these is essential to any mining
project. Five of the most important are summarised below.

1. Protected areas
Protected areas remain the fundamental building blocks of virtually all national and international conservation strategies,
supported by governments and international frameworks alike. They are used to ensure that ecosystems, habitats andspecies are protected from damage and loss and have a formal status within countries, which often comes with consequential
limitations on economic activities.
World Heritage sites are specific protected areas designated by the UNESCO Convention Concerning the Protection of theWorld Cultural and Natural Heritage (the World Heritage Convention) as areas with outstanding universal value, meaningthat they have cultural or natural significance which is so exceptional as to transcend national boundaries and to be of common
importance for present and future generations of all humanity. In 2014, nine of the world’s leading conservation NGOs united
their voices in calling for World Heritage sites to be ‘no-go’ areas for extractive industries.1

2. Key Biodiversity Areas (KBAs)
KBAs are intended to represent the world’s most important sites for biodiversity conservation. Critical for maintaining
effective ecological networks, KBAs are the starting point for conservation planning at a landscape level. They are used bygovernments, intergovernmental and non-governmental organisations, the private sector and many other stakeholders as atool for identifying national networks of internationally important sites for conservation.
KBAs and protected areas are not necessarily interchangeable. Some protected areas (or parts of protected areas) do
not count as KBAs, and some KBAs extend beyond or lie outside existing protected areas. There are five types of KBA todistinguish areas of threatened biodiversity, geographically restricted biodiversity, ecological integrity, biological processes
and irreplaceability. In 2018, more than 15,000 sites were listed on the World Database of Key Biodiversity Areas.

High conservation value areas (HCVAs)
While KBAs identify sites that are important for biodiversity to survive at a global level, HCVAs tend to reflect locallyimportant biodiversity. Identified site by site, as the need arises, HCVAs are designated using six qualitative criteria,
covering environmental, social and cultural issues.
They often have particularly high ecological or social values and are most commonly used as part of voluntary certification
schemes (for example, the Forest Stewardship Council). KBAs conversely focus solely on biodiversity values and are
identified through quantitative thresholds, independent of development plans or certification schemes.
Source:• World Database of Key Biodiversity Areas
www.keybiodiversityareas.org/business-guidelines/q-and-a#qa-07

1

Joint NGO Statement on No-Go and No-Impact Measures for Extractive Activities in Natural and Mixed World Heritage Sites (2014)
http://assets.wwf.org.uk/downloads/ngo_whs_no_go_statement_final_with_logos_1.pdf

302 RJC Code of Practices Guidance3. Habitats for threatened species
Threatened species are any species (including plant, animal or fungus, etc.) that are in danger of extinction. Their habitats
are high conservation priorities because there is limited time to act before they disappear. The International Union forConservation of Nature (IUCN) is the recognised authority on threatened species and groups them into categories of nearthreatened, threatened, vulnerable, endangered and critically endangered through its Red List (the additional category of‘data-deficient’ is used where inadequate data exists for assessment). Although only a small proportion of the world’s plant
and animal species have been assessed, in 2018 more than 26,500 species were identified as being threatened with extinction(more than 27 per cent of all assessed species).2

4. Forests
Many KBAs are forests, and it is estimated that mining accounts for up to seven per cent of forest loss in low- and middleincome countries.3 ‘Forest smart mining’ is a development approach applied to mining activities that recognises forests’ twinrole in protecting conservation and sustaining growth across many sectors and seeks out opportunities for mutual benefit. It issustainable and inclusive in nature, emphasising that forests are part of a broader landscape and that changes in forest coveraffect other land uses as well as the people living in that landscape.4

5. Deep seas
Deep sea mining is a relatively new area of activity that has the potential to develop mineral extraction processes for offshore
ocean floor environments. While commercial feasibility is yet to be established, several exploration companies have been
established to investigate potential ore deposits that include gold. Since these deep marine ecosystems may be rich inpreviously unknown biodiversity, existing regulatory structures may need to be further developed to govern development
approvals and oversight of operations.

C Key regulations, standards and initiatives
International conventions
At the 1992 Earth Summit in Rio de Janeiro, the UN Convention on Biological Diversity (CBD, www.cbd.int) was signed by
157 governments; it has since been signed and ratified by 193 countries. The objectives of the CBD are to encourage andenable all countries to conserve biodiversity, sustainably use the various components of biodiversity, and to share the benefits
arising from the commercial and other use of genetic resources in a fair and equitable manner. The CBD is an instrument forgovernments and is implemented through national legislation.
World Heritage sites are established under the 1972 World Heritage Convention(https://whc.unesco.org/en/convention), which is administered by UNESCO. World Heritage status relates to cultural and/or
natural heritage considered to be of outstanding universal value. In 2018, there were 1,092 World Heritage sites listed across
167 countries, including 209 designated for natural value.
The Global Standard for the Identification of Key Biodiversity Areas(https://portals.iucn.org/library/node/46259) was adopted by the IUCN in 2016. The standard builds on the organisation’s
more than 30 years of experience identifying Important Bird and Biodiversity Areas (IBAs) and other sites of international
importance, and expands it to all wildlife, plants and ecosystems.
The 1971 Convention on Wetlands of International Importance, called the Ramsar Convention(www.ramsar.org), is an intergovernmental treaty that provides the framework for national action and international cooperation in the conservation and wise use of wetlands and their resources. Areas listed on the Ramsar List of Wetlands ofInternational Importance are recognised as wetlands of international importance.
The UN Convention on the Law of the Sea(www.un.org/depts/los/convention_agreements/convention_overview_convention.htm) came into force in November 1994 toregulate sea and ocean resources. It enshrines the notion that all problems of ocean space are closely interrelated and need tobe addressed as a whole.
The New York Declaration on Forests(NYDF, https://nydfglobalplatform.org) is a voluntary partnership of more than 190 governments, multinational companies,
civil society and indigenous peoples working together to halve deforestation by 2020 and end it by 2030. The NYDF outlines
10 global targets to protect and restore forests and reduce carbon emissions, including, for example, restoring 350 million
hectares of degraded landscapes and forestlands.

2

IUCN, IUCN Red List of Threatened Species (2019) www.iucnredlist.org

3

PROFOR, Does Mining Need a Forest-Smart Approach? You Bet it Does! (2018) www.profor.info/keywords/mining

4

Biodiversity A-Z, Forest Smart Mining www.biodiversitya-z.org/content/forest-smart-mining

RJC Code of Practices Guidance 303

The IUCN Red List of Threatened Species(www.iucnredlist.org) provides taxonomic, conservation status and distribution information on plants and animals that havebeen globally evaluated, including those listed as critically endangered, endangered and vulnerable.

International standards
The International Finance Corporation (IFC) Environmental and Social Performance Standards(www.ifc.org/performancestandards) define IFC clients’responsibilities for managing environmental and social risks. A global
benchmark on good practice, these comprise eight standards, including:• Performance Standard 6: Biodiversity Conservation and Sustainable Management of Living Natural Resources, which setsout requirements according to the nature of the potentially affected habitat (modified, natural or critical), and the presenceof legally protected and internationally recognised areas.
The IFC Performance Standards are embedded in the Equator Principles (http://equator-principles.com). See COP 24
Environmental management for more information.
The International Council on Mining and Metals (ICMM) Mining and Protected Areas Position Statement(www.icmm.com/en-gb/members/member-commitments/position-statements/mining-and-protected-areas-position-statement)
outlines a commitment to not mine or explore in World Heritage sites. ICMM’s Good Practice Guidance for Mining andBiodiversity describes steps required to improve biodiversity management throughout the mining lifecycle.
In 1994, the IUCN published the Protected Area Categories system (www.iucn.org/theme/protected-areas/about/protectedarea-categories) as a global standard for planning, establishing and managing protected areas. It identifies seven categories ofprotected area:• Category Ia: Strict nature reserve• Category Ib: Wilderness area
• Category II: National park
• Category III: National monument or feature• Category IV: Habitat/species management area
• Category V: Protected landscape/seascape• Category VI: Protected area with sustainable use of natural resources
In 2015, the Mining Association of Canada (MAC) adopted a Towards Sustainable Mining (TSM) Biodiversity Conservation
Management Protocol (https://mining.ca/sites/default/files/Biodiversity%20Conservation%20Management-EN.pdf) settingout performance expectations for members on biodiversity conservation management.

International partnerships
The Business and Biodiversity Offsets Programme (BBOP, http://bbop.forest-trends.org) was a partnership from 2004 to2018 between companies, governments and conservation experts to explore and promote best practice for biodiversity
offsets. As a tool it provides comprehensive guidance on how to implement the mitigation hierarchy and the resulting
requirement for biodiversity offsets. In 2012, the programme published its Biodiversity Offsets Standard, which provides
an auditable approach for project developers to manage biodiversity-related risks for no net loss. The standard also allows
auditors and assessors to determine whether an offset has been designed and subsequently implemented in accordance withthe 10BBOP Principles. Some companies have also found the standard to be a useful early stage risk assessment tool.
The Integrated Biodiversity Assessment Tool (IBAT, www.ibatforbusiness.org/login) is designed to facilitate access to upto-date and accurate biodiversity information to support critical business decisions. It acts as a central database for globally
recognised biodiversity information, including on KBAs and legally protected areas. IBAT is the result of a partnership between
BirdLife International, Conservation International and UN Environment World Conservation Monitoring Centre (WCMC).
The Cross-Sector Biodiversity Initiative (CSBI, www.csbi.org.uk) involving mining, oil and gas, and banks was launched in
February 2013. It aims to explore and develop practical tools and share good practices for the effective application of the
mitigation hierarchy.
The Program on Forests (PROFOR, www.profor.info) is a multi-donor partnership under a World Bank secretariat working
on extractive industries in forest landscapes. Among its activities, PROFOR is helping to develop practical tools and policy
recommendations that promote the sustainable growth of mining and other sectors, without destroying the public good
provided by forests (forest-smart mining).55

PROFOR, Does Mining Need a Forest-Smart Approach? You Bet it Does! (2018) www.profor.info/keywords/mining

304 RJC Code of Practices GuidanceNational law
Nearly all jurisdictions have a legal and regulatory framework for environmental protection. Many of the signatory nations to
the Convention on Biological Diversity have introduced specific laws protecting their country’s biodiversity.
Offsets are part of the legal framework in some countries and regions, including, for example, Brazil, Canada, Europe,
Switzerland and the United States.
RJC members are expected to be familiar with applicable law and understand the legislative and regulatory framework forbiodiversity in all areas of operation.

D Implementation guidance
The systems you need to implement this provision include:• Management responsibility: Make a suitably qualified person(s) accountable for incorporating biodiversity management
into impact assessment, planning and operations.
• Written policy, plans and procedures: Address biodiversity management in corporate or site-specific sustainability (orequivalent) policy and documentation. Consider implementing a biodiversity action plan at the site level to detail how you
will achieve biodiversity objectives and targets.
• Record-keeping and reporting: Monitor changes in biodiversity to evaluate the success of your management plans,rehabilitation trials and research projects, and to track any general changes in the biodiversity that may be influenced bynon-mine factors.
• Training and communication: Train employees and contractors to make sure they have adequate competency andknowledge of biodiversity policies, plans and procedures.

COP 38.1 and 38.2: World heritage sites and protected areas
38.1 Members in the mining sector shall not explore or mine in World Heritage sites and shall ensure that theiractivities do not negatively impact directly on adjacent World Heritage sites.
38.2 Members in the mining sector shall respect legally designated protected areas by ensuring that they:a. Have a process to identify nearby legally designated protected areas.
b. Comply with any regulations, covenants or commitments attributed to these areas.
c. Take impacts on legally designated protected areas into account when making decisions throughout the mining lifecycle.

Points to consider:• Make sure your policy prohibits exploration and development in, and impact on, World Heritage sites.
• As early as possible in the mining lifecycle, map protected areas (including World Heritage sites) in and around the projectsite. Use competent personnel to carry out the mapping, and repeat the exercise periodically as protected areas can change,
and you are expected to stay aware of developments.
• Carry out an impact assessment (see Figure 34.1 Impact assessment) to assess the risks and impacts on relevant World
Heritage sites and protected areas.
•

Note that your impact assessment should also cover risks and impacts for KBAs (COP 38.3), threatened species (COP
38.4) and deep sea areas (COP 38.5).

• Use your mapping to confirm whether you have any existing or planned infrastructure and activities in or adjacent to a World
Heritage site (these are listed on the UNESCO website), or in or near a protected area.
•

Note that ‘adjacent’ in this context means geographically connected, either by borders, mine transit roads or upstream
waterways.

• If your mining operation is in or adjacent to a World Heritage site:•

Establish controls to ensure activities will not cause adverse impacts on World Heritage sites.

•

Check whether your mining operation pre-exists World Heritage designation: if so, you may have to comply with
grandfathering legislation.

RJC Code of Practices Guidance 305

• If your mining operation is in or near to a protected area:•

Maintain a register of the legal and other requirements that apply to each relevant protected area. The register should
nominate personnel responsible for compliance with these requirements. Where there is doubt as to legal restrictions,
respect environmental protection law.

• Consider whether there are any unprotected areas in or around your site that have been identified by governments or otherstakeholders as priority conservation areas for biodiversity.
• In all cases, make management aware of this provision’s requirements and ensure that they are taken into account in any
decisions to proceed with exploration, development, operation and closure activities.

COP 38.3: Key biodiversity areas
Members in the mining sector shall identify Key Biodiversity Areas affected by their operations and:a. Use the mitigation hierarchy to avoid, minimise and rehabilitate impacts on biodiversity and ecosystem services. Offsets toaddress the residual impact shall only be employed after these steps are applied.
b. Implement action plans to deliver measurable biodiversity benefits that are at least commensurate with the level ofadverse impacts and ideally provide a net gain.
c. In areas of critical habitat, ensure there are no measurable adverse impacts (no net loss) on the criteria for which thehabitat was designated or on the ecological processes supporting those criteria, and provide an overall net gain inbiodiversity benefits for the area.

Points to consider:• Identify relevant KBAs through, for example, IBAT (https://www.ibat-alliance.org/.
• Your impact assessment should include detailed research to identify and assess risks and impacts to relevant KBAs andany critical habitat. As outlined in COP 34 Impact assessment, you should consider a landscape level approach. It may also
be appropriate to identify HCVAs, for example if other landscape level organisations or agencies are working with HCVAs.
Either way, your impact assessment may require extensive fieldwork in regions with limited biodiversity information.
• Ensure policies, plans and procedures apply the mitigation hierarchy when addressing biodiversity risks and impacts (seeFigure 24.2 Environmental management). This involves prioritising options in a sequential way, as follows:•

Avoid: design or modify a proposed mine or existing operation to prevent potential biodiversity impact.

•

Minimise: take measures to reduce the duration, intensity and/or extent of biodiversity impacts.

•

Restore or rehabilitate: take measures to improve degraded or removed ecosystems.

•

Offset: take measures to compensate for any residual biodiversity impact left after the previous three steps have beentaken.

•

Additional conservation actions: take other compensatory measures, such as research grants or education scholarships,that do not offset residual losses but support biodiversity conservation.

• Note that you should only choose to offset biodiversity impacts as a last resort to tackle residual impacts. In these cases,
understanding stakeholder perspectives is key to ensuring that offsets are credible and can deliver tangible conservation
benefits. And residual impacts must be permitted under applicable national law.
• Use a documented action plan to mitigate impacts and deliver positive biodiversity outcomes. This should include, forexample, on-site programmes to enhance habitat and protect and conserve biodiversity, or, after adequate avoidance,
minimisation and restoration measures, biodiversity offsets.
• Design your plan so as to ensure a fair exchange in the balance of losses and gains. This requires exchanging similar types andamounts of biodiversity, including quantitative measurement of losses and gains to biodiversity.
• Wherever possible, aim to deliver a biodiversity benefit or net gain. You can demonstrate biodiversity benefits by:•

improving existing or creating new habitats for species impacted by your mining activities;•

reducing threats to species and their habitat; or•averting the local loss of a species or its habitat by securing its future use for conservation.

• As outlined in IFC Performance Standard 6, the specific features of critical habitats must not suffer a measurable adverse
impact and the area should have an overall measurable biodiversity benefit. For example, if the area is critical because of thepresence of an endangered frog, there should be no net decline in frog numbers or the wetland habitats that they depend on.
Additionally, the overall area should benefit from improved conservation of the critical habitat values in question.

306 RJC Code of Practices GuidanceCOP 38.4: No net loss to species threatened with extinction
Members in the mining sector shall implement controls to ensure that their operations will not lead to the significant
decline (no net loss) of a threatened species, as listed by the IUCN, or create adverse impacts on the habitat critical tosupporting their survival.

Points to consider:• Make use of databases maintained by conservation groups, such as the IUCN, to access information about species that are
threatened with extinction (see box ‘Biodiversity databases’).

Biodiversity databases
A number of databases maintained by conservation organisations provide details on nationally or internationallysignificant protected areas or KBAs, and on species that are threatened or endangered. These include:• UNEP-WCMC World Database on Protected Areas www.unep-wcmc.org/resources-and-data/wdpa• World Database of Key Biodiversity Areas www.keybiodiversityareas.org/home• Alliance for Zero Extinction http://zeroextinction.org• BirdLife International, Important Bird and Biodiversity Areaswww.birdlife.org/worldwide/programme-additional-info/important-bird-and-biodiversity-areas-ibas• Plantlife, Important Plant Areas www.plantlife.org.uk/international/important-plant-areas-international• Fauna and Flora International www.fauna-flora.org• Tropicos [Missouri Botanical Garden] www.tropicos.org• Conservation International www.conservation.org• Natura 2000 [European Union] http://ec.europa.eu/environment/nature/natura2000/index_en.htm• High Conservation Value Areas www.biodiversitya-z.org/content/high-conservation-value-areas-hcva
Many countries also maintain their own databases of nationally threatened species and habitats, and these need to beconsidered in meeting national biodiversity priorities with respect to threatened species and habitats.

• Your impact assessment should identify the presence of any species threatened with extinction (categories criticallyendangered, endangered and vulnerable) and any of their critical habitats.
• Your policies, plans and procedures must ensure that activities do not create a significant decline in species numbers or haveadverse impacts on habitats critical to their survival.

COP 38.5: Undersea mining activities outside of national government jurisdictions
Members in the mining sector shall not carry out exploration or mining activities, including tailings disposal, in deep sea
areas until they have sufficient scientific knowledge of potential impacts of their activities, and evidence that controls
can be implemented to mitigate adverse impacts.

Points to consider:• Deep sea is the lowest layer in the ocean. The Commission on the Limits of the Continental Shelf (under the UN Division of
Ocean Affairs and the Law of the Sea) distinguishes the deep ocean floor from the continental shelf, defining the latter as thepart ‘between the shoreline and the shelf break or, where there is no noticeable slope, between the shoreline and the point
where the depth of the superjacent water is approximately between 100 and 200 metres’.6 The IUCN refers to deep sea as
the area of the ocean below 200 metres;7 however, other references are for even deeper depths.
• Your impact assessment should identify and document biodiversity values in these marine ecosystems. Use competentpersonnel who can assess that the status of the scientific knowledge of potential impacts is sufficient and that the controls
planned to manage them are adequate.
• Assess the severity of any impacts to the marine ecosystem and communicate results to management before making any
decision to proceed with undersea mining activities. Document all management decisions.

6

UN Division for Ocean Affairs and the Law of the Sea, The Continental Shelf http://www.un.org/Depts/los/clcs_new/continental_shelf_description.htm

7

IUCN, Deep-Sea Mining https://www.iucn.org/resources/issues-briefs/deep-sea-mining

RJC Code of Practices Guidance 307

• See also the requirements of COP 39.4 Tailings and waste rock.
• Use the mitigation hierarchy when designing and implementing controls to mitigate residual biodiversity impacts in deep sea
areas.
• Avoid operating in areas where the biodiversity values of potentially impacted undersea ecosystems are scientificallyuncertain or where there is a threat of serious and irreversible damage.

Check:■■Do you have a policy that prohibits exploration, development in or impact on World Heritage sites?
■■Have you confirmed whether you have any existing or planned activities that are next to World Heritage sites? If so,
what measures are in place to ensure these will not be adversely impacted?

■■Have you identified overlapping or nearby protected areas, and is this accounted for in your decision-making?
■■Are you aware of all legal and other requirements applying to any relevant legally protected areas?
■■Have you identified KBAs or HCVAs affected by your operations?
■■Do your policies and procedures apply the mitigation hierarchy to impacts on biodiversity and ecosystem services?
■■Are plans in place to deliver biodiversity benefits at least commensurate with the level of adverse impacts?
■■Have you identified areas of critical habitat, and do your policies and procedures ensure there are no measurable
adverse impacts on the criteria for which the habitat was designated?

■■Have your impact assessments identified any species threatened with extinction, and if so are controls in place toensure your operations will not lead to the significant decline of those species?

■■For any mining activities to be carried out in undersea areas outside national government jurisdictions, have yourimpact assessments identified biodiversity values and are controls in place to mitigate any adverse impacts?

E Further information
Websites:
Artisanal and Small-Scale Mining in Protected Areas and Critical Ecosystems Programme (ASM-PACE)
www.levinsources.com/projects/asm-pace-artisanal-small-scale-mining-protected-areas-and-critical-ecosystems
The Biodiversity Consultancy
www.thebiodiversityconsultancy.com/approaches/mitigation-hierarchy
Business and Biodiversity Offsets Programme
http://bbop.forest-trends.org
Convention on Biological Diversity
www.cbd.int
Convention on Wetlands of International Importance: Ramsar Convention
www.ramsar.org
Global Biodiversity Information Facility (GBIF)
www.gbif.org
High Conservation Value (HCV) Resource Network
www.hcvnetwork.org
The Integrated Biodiversity Assessment Tool (IBAT) for Business
www.ibatforbusiness.org
IUCN, IUCN Red List of Threatened Species (2019)www.iucnredlist.org
IUCN, Rio Tinto Relationshipwww.iucn.org/theme/business-and-biodiversity/our-work/business-partnerships/rio-tinto
The Program on Forests (PROFOR)
www.profor.info
Prospectors and Developers Association of Canada (PDAC), e3 Plus: A Framework for Responsible Explorationwww.pdac.ca/e3plus/toolkits

308 RJC Code of Practices GuidanceSociety for Ecological Restoration International (SER)
www.ser.org
UN Convention on the Law of the Sea
www.un.org/depts/los/convention_agreements/convention_overview_convention.htm
UN Environment [formerly UNEP], World Conservation Monitoring Centre (WCMC)
www.unep-wcmc.org
University of Queensland [Australia], Centre for Mined Land Rehabilitationwww.cmlr.uq.edu.au
WCMC, World Database on Protected Areas
www.unep-wcmc.org/resources-and-data/wdpa

Publications:
Australian Government, Environment Protection and Biodiversity Conservation Act 1999: Offsets Policy (2012)www.environment.gov.au/system/files/resources/12630bb4-2c10-4c8e-815f-2d7862bf87e7/files/offsets-policy_2.pdf
ICMM, Biodiversity Offsets: A Briefing Paper for the Mining Industry (2005)
www.ecosystemmarketplace.com/wp-content/uploads/archive/documents/Doc_417.pdf
ICMM, Mining and Biodiversity: A Collection of Case Studies (2010)www.icmm.com/en-gb/publications/biodiversity/mining-and-biodiversity-a-collection-of-case-studies_2010-edition
ICMM, Mining and Biodiversity Good Practice Guidance (2006)
www.icmm.com/page/1182/good-practice-guidance-for-mining-and-biodiversity
ICMM, Mining and Protected Areas Position Statement (2003)
www.icmm.com/en-gb/members/member-commitments/position-statements/mining-and-protected-areas-positionstatement
ICMM and IUCN, Independent Report on Biodiversity Offsets (2012)www.icmm.com/en-gb/publications/biodiversity/independent-report-on-biodiversity-offsets
IFC, Guidance Note 6: Biodiversity Conservation and Sustainable Management of Living Natural Resources (2012)https://www1.ifc.org/wps/wcm/connect/a359a380498007e9a1b7f3336b93d75f/Updated_GN6-2012.pdf?MOD=AJPERES
IFC, Performance Standard 6: Biodiversity Conservation and Sustainable Management of Living Natural Resources (2012)https://www1.ifc.org/wps/wcm/connect/bff0a28049a790d6b835faa8c6a8312a/PS6_English_2012.pdf?MOD=AJPERES
IUCN, A Global Standard for the Identification of Key Biodiversity Areas (2016)
https://portals.iucn.org/library/node/46259
IUCN, Guidelines for Applying Protected Area Categories (2008)
data.iucn.org/dbtw-wpd/edocs/PAPS-016.pdf
IUCN, Guidelines on Business and Key Biodiversity Areas (2018)https://portals.iucn.org/library/node/47660/
IUCN, Identification and Gap Analysis of Key Biodiversity Areas (2007)
http://data.iucn.org/dbtw-wpd/edocs/PAG-015.pdf
IUCN, IUCN Policy on Biodiversity Offsets
https://portals.iucn.org/library/sites/library/files/resrecfiles/WCC_2016_RES_059_EN.pdf
World Bank, Precautionary Management of Deep Sea Mining Potential in Pacific Island Countries
http://pubdocs.worldbank.org/en/125321460949939983/Pacific-Possible-Deep-Sea-Mining.pdf
World Heritage Committee, Operational Guidelines for Implementation of the World Heritage Convention (2012)
http://whc.unesco.org/en/guidelines
World Heritage Convention, World Heritage List (2016)
http://whc.unesco.org/en/list

RJC Code of Practices Guidance 309

(COP 39) Tailings and waste rock
A Definitions and applicability
This provision applies to all RJC members in the mining sector.
Lifecycle is the interlinked stages of a product (or service) system, from raw material acquisition or natural resources to final
disposal. The mining lifecycle is the series of phases over the course of a mining project going from exploration, feasibility
studies and construction through production to mine closure, rehabilitation and post-closure.
Mining wastes are wastes generated during the extraction, beneficiation and processing of ore.
Tailings are the ground rock and effluents created when the mined ore is processed into a concentrate or final product throughphysical operations such as screening, crushing, grinding and concentrating, or by methods involving chemicals, heat andpressure, such as leaching. The basic requirement of tailings management is safe, stable and economical storage that protects
human health and the environment.
Waste rock and overburden are the materials that are removed to access the ore. These may even contain very low grades ofore, but only at levels that cannot be processed profitably.
Waste rock management involves the removal and storage of waste rock, which may be temporary or for the long term.

B Issue background
Tailings and waste rock are found in all mining operations. Removing and storing them safely remains one of the mining
industry’s biggest hurdles to better environmental performance. Because the mining of gold, silver, PGM, diamonds andcoloured stones involves different processes across diverse environments, there is no one-size-fits-all approach. Each site willneed to develop its own management system to protect human health and the environment.
Tailings and waste rock can have three main types of negative impacts:• Footprint: The storage of large volumes of tailings and waste rock creates a physical footprint on the landscape that has
unavoidable environmental and social impacts.
• Catastrophic failure: Geotechnical failure (landslides or collapse of tailings or waste rock structures) rarely happens, but when
it does it can have a catastrophic impact on people and ecosystems because of the sheer and immediate volume of material it
releases into the environment. When the Córrego de Feijão mine and the Samarco’s Fundão tailings dams collapsed in Brazil
respectively in 2019 and 2015, they killed 179 and 19 people, polluted the water supply for hundreds of thousands more anddestroyed wildlife for kilometres. The disasters also carry a high cost for the firms in fines and in clean-up and relief.
• Acid rock drainage (ARD): Tailings and waste rock can contain sulphide minerals which, when exposed to air and water,
create an outflow of acidic water known as ARD.1 This can seep into groundwater or emerge in surface streams, withecological impacts. Without effective prevention and management, ARD can continue to contaminate waterways andaquatic environments for decades or centuries after mining has stopped.
Tailings and waste rock can be managed in different ways, depending on their physical and chemical nature, national regulationand the mining or processing site’s topography, climate and socio-economic context.
Waste rock is often piled up into heaps (called waste rock facilities, impoundments or dumps). Depending on its physicalcharacteristics, waste rock is sometimes used to backfill the voids in active or closed mines. It can also be used in land forming,as road base aggregate, footings or for landscape restoration.
Tailings storage and disposal methods tend to fall into one of five categories (see Figure 39.1):• Terrestrial storage is the most common type of storage and includes:

1•

Impoundments or dams: Tailings are discharged into an impounding structure as a slurry and the excess water is removed
through decant ponds, toe drains and under-drains. Impounding structures can include engineered earthen dams, natural
topographical depressions or valleys, or mine pits.

•

Dry stacking: Tailings are filtered out using vacuum or pressure filters and then stacked into a dense and stable structure.

•

Backfilling: Tailings are thickened into a paste-like substance using waste aggregate and cement and used to fill voids inactive, abandoned or closed underground or open-pit mines.

In some cases, sulphide minerals can leach out as neutral drainage containing various elements. This guidance document refers to ARD as including both neutral andacidic drainage.

310 RJC Code of Practices Guidance•Thickened tailings dams: The same paste-like product used in backfilling is used to build new tailings dams, or to extend
the life of existing ones.

•

Permanent heap leach pads and heap leach spoils: Mined ore is crushed into small pieces and heaped onto animpermeable ‘leach pad’ where it is irrigated with a leach solution to dissolve the valuable metals and minerals. Afterleaching, the heap is typically ‘rinsed’, covered with an impermeable cap and left insitu.

• Sub-aqueous storage: Tailings are kept under water in perpetuity, either in a purpose-built structure or in dams or diversion
structures around existing water bodies. A good way of preventing ARD, sub-aqueous storage is only really a viable option incountries where rainfall outstrips evaporation; for example, it is used in Canada and Norway.
• Submarine tailings disposal: Tailings are treated and dumped into the sea through a submerged pipe. This type of disposal
is generally only used if land-based disposal is not an option—for example, if local conditions carry a high risk of ARD or
catastrophic failure, or if the surrounding area is a biodiversity hotspot or has high economic or cultural value.
• Surface marine tailings disposal: Tailings that are not chemically active—for example, sorted seabed material—are dumped
overboard from a marine mining vessel or platform.
• Riverine tailings disposal: Tailings are dumped into, and dispersed by, active rivers. Riverine disposal is rare and is notconsidered good practice. It is currently only used at three sites in Indonesia and Papua New Guinea where high rainfall,
mountainous terrain and seismic activity rule out other storage or disposal options.

Terrestrial
disposalDry stacking
Tailings are ﬁlteredand stacked
Thickened tailings
Tailings slurry is
de-watered andstoredDams or impoundments
Tailings are impounded asslurry and drained
The most common
tailings disposal

Surface marine
disposal
Inactive tailings are
pumped back to the seabed(for seabed mining only).

Heap leach spoils
Ore is leached on special
pads and rinsed

Submarine
disposal

Backﬁlling
Tailings are used to ﬁll
empty mines

Tailings are treated
and dumped in thesea through asubmerged pipe.

Subaqueous
disposalRiverinedisposalTailings are kept underwater in perpetuity, in ﬁt
for-purpose structures.

Tailings are dumped
into, and dispersed
by, active rivers

Figure 39.1. Different types of tailings disposal

RJC Code of Practices Guidance 311

Tailings disposal lies at the forefront of the debate about the trade-off between the potential costs and benefits of mining.
Decisions on mine waste management are most commonly reached through an environmental and social impact assessment(ESIA) that is completed before a mine gets development approval. An ESIA usually covers methods and key issues, theregulatory framework, the consultation process, the social and environmental baseline, consideration of alternatives,
prediction and evaluation of significant social and environmental impacts, mitigation or offset measures, environmental andsocial management and monitoring plans.

C Key regulations, standards and initiatives
International initiatives
The Global Acid Rock Drainage Guide,2 published by the International Network for Acid Prevention (INAP), offers a stateof-the-art summary of good practices and technology on the prediction, prevention and management of ARD. INAP also
brings together a consortium of national ARD research groups under a Global Alliance, including MEND from Canada, the US
Acid Drainage Technology Initiative, the South African Water Research Commission and the Partnership for Acid Drainage
Remediation in Europe. Each group provides a useful national network and reference body for ARD.
The International Commission on Large Dams (ICOLD, www.icold-cigb.net) is an international non-governmental organisationthat provides a forum for the exchange of knowledge and experience in dam engineering. ICOLD leads the profession inensuring that dams are built safely, efficiently, economically and without detrimental effects on the environment. It offers
extensive guidance to designers, owners and operators of large dams, including tailings dams.
The International Council on Mining and Metals (ICMM) has a position statement on preventing catastrophic failure of
tailings storage facilities that all its members are required to uphold.3 The statement outlines a tailings governance framework
based on accountability, long-term planning and resourcing, thorough risk and change management, and regular review andassurance.

National law
Each jurisdiction has its own legislative or regulatory framework on tailings storage and management of other mine wastes
that governs how storage facilities are designed, licensed, monitored, reported and closed. It is essential that you comply withapplicable law.

National initiatives
The Mining Association of Canada (MAC) Towards Sustainable Mining initiative includes a Tailings Management Protocol,4supported by a Guide to the Management of Tailings Facilities. While developed for the Canadian context, these resources areuseful to any mine planning for effective tailings management.
The Mine Environment Neutral Drainage (MEND, http://mend-nedem.org) programme in Canada aims to develop and apply
new technologies to prevent and control ARD.

D Implementation guidance
Make sure you have a comprehensive system in place for managing tailings and waste rock. Your system should, as per MAC
guidance, include four key components:• A risk-based approach, including regular, rigorous risk assessment and transparent decision-making to choose the mostappropriate site-specific approach to disposal, using the best available technology.
• Critical controls to identify, implement and monitor actions for managing high risks.
• An engineer-of-record to provide technical direction for waste management.
• Independent review and evaluation by a competent, objective third party. This review should cover all aspects of theplanning, design, construction, operation and maintenance of waste facilities.

2

INAP, Global Acid Rock Drainage Guide (2009) www.gardguide.com/index.php?title=Main_Page

3

ICMM, Preventing Catastrophic Failure of Tailings Storage Facilities (2016) www.icmm.com/tailings-ps

4

MAC, Tailings Management Protocol (2019) http://mining.ca/sites/default/files/Tailings-Management-Protocol_2019%20final.pdf

312 RJC Code of Practices GuidanceYour management system will need to establish documented processes for all aspects of handling, containing and controllingmaterials at tailings and waste rock facilities. This includes processes to maintain a safe and stable structure, addresscontamination, engage stakeholders and train personnel (see Figure 39.2).
You will also need to keep records that identify, for each facility:• roles and responsibilities of personnel and the minimum knowledge and competency requirements for each position;• characteristics and properties of the tailings and waste rock;• records of inspections and geotechnical assessments of the facility’s integrity and stability;• the key components and location of tailings and mine waste storage;• procedures and processes for managing change;• requirements for analysing and documenting performance of the tailings and mine waste storage; and• reporting requirements (statutory and stakeholder).

1 Storage facility structure
You must locate, design, build, operate, monitor, maintain and close facilities
such that their structures are stable, their contents are managed incompliance with applicable law, and their surrounding water and air quality isprotected. This should include the four key components from MAC guidance.

4 Training
You must train all
personnel at the facility
so that they understandthe waste management
plan and what their roles
and responsibilities are in
implementing it. Training
must also cover visualindicators of storage
performance.

2 Contamination
You must be able to show
how you identify, assess,manage and remediatecontaminated sites, whichshould include active
monitoring throughout
the watershed.

3 Stakeholder engagement
You must consult with affected communities, emergency agencies and any otherstakeholders in identifying, assessing and managing any signiﬁcant economic,
health and safety, social or environmental risk associated with the facility.

Figure 39.2. Processes for tailings and waste rock facilities

COP 39.1: Tailings and waste rock characterisations
Members in the mining sector shall carry out physical and geochemical characterisations of mine tailings and wasterock.

RJC Code of Practices Guidance 313

Points to consider:• Understanding the physical and geochemical characteristics of tailings and waste rock—and predicting their behaviour overtime—is critical to design safe and stable storage facilities. The most important characteristic to know is perhaps the shear
strength; you may need to do stability and strength tests to determine it. Other important characteristics to know include, ata minimum:•

particle size and distribution;•

moisture content;•

density, consolidation and porosity; and•plasticity and permeability.

• When you are doing your ESIA for a new waste facility, make sure you think about ARD. There’s a significant body of work on
predicting and managing ARD that you can use to help you establish a good testing programme during the ESIA phase, whichshould include predictive modelling as well as field and lab-based tests of waste rock, such as static tests (for example, acidbase accounting), kinetic lab tests (for example, humidity cells) and field kinetic tests.
• In characterising waste materials and predicting their behaviour over time, make sure you consider how particularcharacteristics of the tailings and waste rock may change over the mining period. Different facilities may need to handle
different rock types at different times.
• Keep your records of material characterisations up to date for all tailings and waste rock sites. Make sure that this recordkeeping is done by competent personnel; this may involve using external expertise.

COP 39.2: Tailings and waste rock facilities
Members in the mining sector shall design, construct, maintain, monitor and close all tailings and waste rock facilities
and supporting infrastructure to:a. Ensure structural stability and take measures to prevent catastrophic failures.
b. Ensure controlled discharge and protect the surrounding environment and local communities from potential impacts ofacidification, metal leaching, loss of containment or contamination, including contamination of groundwater during themine’s operation and post-closure.
c. Implement appropriate mitigation or treatment if impacts are identified.

Points to consider:• Use the ICMM governance framework for tailings storage facilities to ensure structural stability and avoid catastrophic
failure. This framework includes six components, ranging from accountability and risk management to review and assurance(see Table 39.1).
Table 39.1. The six components of the ICMM governance framework for tailings storage facilities. Source: ICMM.
Preventing Catastrophic Failure of Tailings Storage Facilities. (2016)
Framework component

Notes
Storing mine waste requires engineered solutions over the long term. The governance of
their design and management needs to be clearly defined and competently implemented.

1

Accountability,
responsibility andcompetency

2

Planning and resourcing

Financial and human resources need to be in place to manage mine waste facilities overtheir entire lifecycle.

3

Risk management

Risk assessments, appropriate controls (using both technology and best practices) andverification of performance are all required.

4

Change management

The changing risks associated with mine waste storage sites over their lifecycle mean sites
need to be continually managed.

5

Emergency preparedness
and response

In the event of failure, mitigation controls should be used to minimise impacts on the wellbeing of workers, local communities and the surrounding environment.

6

Review and assurance

314 RJC Code of Practices Guidance

The MAC guide further defines that mine owners are responsible for identifying andappointing an ‘engineer-of-record’ to provide technical direction.

Internal performance monitoring, as well as internal and external reviews and assurance, isneeded.
The MAC guide further states that this should include regular independent review carriedout by a third party.

• Before building a tailings or waste rock storage facility, do a risk assessment to identify, prioritise and improve yourengineering design and management controls. This risk assessment should be regularly updated and should, at a minimum,
consider:•location and proximity of tailings and waste rock storage facilities to sensitive environments, including groundwater, andaffected communities;•

the storage capacity of tailings and waste rock facilities, compared with the likely volume of waste to be managed over themining lifecycle;•

potential impact of extreme events, such as earthquakes or floods;•

effectiveness of erosion control, including dust entrainment, sediment run-off and loss of topsoil; and•potential mobility of waste materials in the case of discharge—the use of techniques such as isolating acid-generating
material should be incorporated.

• When designing a tailings dam or storage facility, you must take into account:•foreseeable extreme flooding, based on statistics such as the probable maximum flood or a ‘one in a thousand year’ 24hour storm event (see the Finnish Dam Safety Code of Practice5 for information on flood events); and•potential seepage to groundwater and surface water—make sure you incorporate features like cut-off drains, drainage
layers, interception trenches and grout curtains to stop waste materials seeping into groundwater and surface water.

• When building tailings embankments and liners, make sure all construction is closely supervised and independently verified
before it is used, to confirm that the ‘as built’ structure matches your design specifications.
• Once you start using the tailings and waste rock facility, carry out periodic inspections and assessments to confirm it remains
safe and structurally stable. At a minimum, you should be doing:•daily or weekly visual inspections for evidence of instability, including erosion, corrosion, cracks or loss of containment;•

periodic geotechnical assessments based on local geology and meteorological conditions, as well as current and planned
mining activities; and•annual independent inspections of structural stability, operation and maintenance.

• In addition to these inspections, you will also need to ensure ongoing geochemical field monitoring, including:•active monitoring of water across the full catchment area, with due consideration for water used by local communities andin sensitive ecosystems; and•testing of both surface and subsurface water, for example through upstream and downstream groundwater monitoring
boreholes that can detect seepage and contamination.

• In the event that your controls fail, take measures to address impacts (and prevent reoccurrence) quickly and effectively.
This may include treating contaminated groundwater.

COP 39.3: Riverine disposal
Members in the mining sector shall not use riverine disposal of tailings or waste rock.

Points to consider:• This provision does not apply to the disposal of tailings and waste rock in conventional waste rock dumps or tailings dams,
which may be built within the catchments of a river system as long as they are designed to store the waste materials in a waythat prevents contamination of the river system.
• River diversion structures around any waste rock or tailings storage facilities should be designed to the same flood capacity
as the structures themselves, to avoid flood damage.

5

Finland National Board of Waters and the Environment, Dam Safety Code of Practice (1994)
https://helda.helsinki.fi/bitstream/handle/10138/157603/Vesi-%20ja%20ymp%C3%A4rist%C3%B6hallinnon%20julkaisuja%20B%209E.pdf?sequence=1

RJC Code of Practices Guidance 315

COP 39.4: Marine disposal
Members in the mining sector shall not use marine or lake disposal of tailings and waste rock from land-based mining
facilities unless:a. a thorough environmental and social analysis of alternatives, using scientifically valid data, was conducted that showedmarine or lake tailings disposal creates less environmental and social impact and risk than a land-based tailings facility; andb. it can be scientifically demonstrated that there will be no significant adverse effect on coastal or marine species andhabitats; andc. there is long-term impact monitoring, including for cumulative impacts, and provision made for a mitigation plan.

Points to consider:• This provision in linked to COP 38.5 Biodiversity.
• The general requirements for tailings and waste rock disposal under COP 39.2 still apply to marine disposal.
• You can decide to use marine disposal of tailings and waste rock if there are high safety and environmental risks associatedto waste disposal on land. You will need to show that the impacts to local marine environments are less detrimental thanthose associated with disposal on land. A thorough risk assessment is needed which:•characterises the tailings and waste rock for marine disposal;•

identifies all marine resources that may be impacted, including marine life and habitat, fishing resources, deep and shallow
corals, sponge and vent communities, seabeds and coastal features;•accounts for seasonal effects, socio-economic factors and cumulative impacts associated with the marine disposal;•

compares the risks and impacts of marine disposal against land-based disposal; and•establishes controls to prevent and mitigate any short- or long-term impact associated with the marine disposal.

• In all cases, shallow marine disposal is not considered good practice because it can pose exposure risks to human health andshallow marine environments.
• If your risk assessment finds that conditions are inappropriate for this form of tailings disposal, or if there is not enough data
to do the analysis, then you should not proceed.

Check:■■Do you have a comprehensive system for managing tailings and waste rock? Is it understood by all relevant personnel?
And do you consult stakeholders about it?

■■Do you have up-to-date records on the physical and geochemical properties of your tailings and waste rock?
■■Can you give the auditor evidence to show that your tailings and waste rock facilities are structurally stable, and do notthreaten local environments and communities? Have you done a risk assessment?

■■If your land-based mine uses marine or lake tailings and waste rock disposal, can you show that it will cause fewer

risks and negative impacts than land-based disposal, and that it will not cause significant adverse impacts on coastal or
marine resources?

316 RJC Code of Practices Guidance

E Further information
Websites:
Acid Drainage Technology Initiative (ADTI)
www.osmre.gov/programs/tdt/adti.shtm
International Commission on Large Dams
www.icold-cigb.net
International Council on Mining and Metals (ICMM), Tailings Management
www.icmm.com/en-gb/environment/tailings
International Network for Acid Prevention (INAP)
www.inap.com.au
Mine Environment Neutral Drainage (MEND) Canada
www.mend-nedem.org
Minerals Council of Australia, Enduring Value Framework
https://www.minerals.org.au/enduring-value-framework
The Mining Association of Canada (MAC)
http://mining.ca
Nevada Division of Environment Protection: Statutes and Regulations
https://ndep.nv.gov/water/water-pollution-control/resources/statutes-regulations
Partnership for Acid Drainage Remediation in Europe (PADRE)
www.padre.imwa.info
South African Water Research Commission
www.wrc.org.za

Publications
Australia, Tailings Management: Leading Practice Sustainable Development Program for the Mining Industry (2016)www.industry.gov.au/sites/g/files/net3906/f/July%202018/document/pdf/tailings-management.pdf
European Commission, Management of Tailings and Waste Rock In Mining (2009)http://eippcb.jrc.ec.europa.eu/reference/BREF/mmr_adopted_0109.pdf
Finland National Board of Waters and the Environment, Dam Safety Code of Practice (1994)
https://helda.helsinki.fi/bitstream/handle/10138/157603/Vesi-%20ja%20ymp%C3%A4rist%C3%B6hallinnon%20
julkaisuja%20B%209E.pdf?sequence=1
ICMM, Good Practice Guidance for Mining and Biodiversity (2006)
www.icmm.com/en-gb/publications/biodiversity/mining-and-biodiversity-good-practice-guidance
ICMM, Preventing Catastrophic Failures of Tailings Storage Facilities (2016)www.icmm.com/tailings-ps
INAP, Global Acid Rock Drainage Guide (2012)www.gardguide.com/index.php/Main_Page
International Finance Corporation (IFC), Environmental Health and Safety Guidelines for Mining (2007)
www.ifc.org/wps/wcm/connect/topics_ext_content/ifc_external_corporate_site/sustainability-at-ifc/policies-standards/ehsguidelines
MAC, A Guide to the Management of Tailings Facilities, Third Edition (2017)
http://mining.ca/sites/default/files/documents/MAC-Guide-to-the-Management-of-Tailings-Facilities-2017.pdf
MAC, Tailings Management Protocol (2017)
http://mining.ca/towards-sustainable-mining/protocols-frameworks/tailings-management-protocol

RJC Code of Practices Guidance 317

(COP 40) Cyanide
A Definitions and applicability
This provision applies to RJC members in the mining sector using cyanide.
The term cyanide for the purposes of the COP includes cyanide ion and hydrogen cyanide, as well as salts and complexes ofcyanide with a variety of metals in solids and solutions.
Source:• International Cyanide Management Codewww.cyanidecode.org

B Issue background
Cyanide effectively and efficiently extracts gold and silver from ore. While a number of other chemicals are available to do thejob‚ they form less stable complexes and so require more aggressive conditions and oxidants to dissolve the gold or silver. The
alternatives are generally more expensive to use and also pose health and environmental risks that may be similar to or greaterthan that those presented by cyanide.
Cyanide is known to be acutely toxic to humans. Liquid or gaseous hydrogen cyanide and alkali salts of cyanide can enter the
body through inhalation, ingestion or absorption through the eyes and skin. The rate of skin absorption is enhanced when theskin is cut, abraded or moist. Unlike mercury, cyanide does not persist in the environment; it is, however, toxic to many livingorganisms at very low concentrations.
Sodium cyanide has been used in the gold mining industry since the late 1800s and it remains the primary reagent for gold
processing today. There have been a number of high-profile incidents in the gold mining industry involving cyanide over theyears, including the failure of a tailings dam at the Baia Mare mine in Romania in 2000, which caused cyanide to leak into theSomes River, killing large numbers of fish and other aquatic life in Hungary and Yugoslavia. It was after this event that theInternational Cyanide Management Code was created.

C Key regulations, standards and initiatives
The International Cyanide Management Code for the Manufacture, Transport and Use of Cyanide in the Production ofGold(the ‘Cyanide Code’)1 is a voluntary industry programme designed to help improve cyanide management practices
among the global gold and silver mining industry, including the producers and transporters of cyanide. Administered by theInternational Cyanide Management Institute (ICMI), the Cyanide Code aims to reduce the potential exposure of workers andcommunities to harmful concentrations of cyanide‚ to limit releases of cyanide to the environment and to enhance response
actions in the event of an exposure or release. The scope of the Cyanide Code was extended in 2016 to include the productionof silver from primary silver mines using cyanide in the production process.
The Cyanide Code is intended to complement a company’s existing regulatory requirements, and addresses cyanide
management issues of most immediate concern. These include the production of cyanide, its transport from the producer
to the mine, its on-site storage and use in the recovery of gold and silver, decommissioning of cyanide facilities, financial
assurance, accident prevention, worker health and safety, emergency response and training, community dialogue, public
reporting and stakeholder involvement.
Signatories of the Cyanide Code commit to follow its principles and standards in their use of cyanide. That includes meeting a
range of specific performance goals and objectives to be certified as compliant.

1

ICMI, The Cyanide Code www.cyanidecode.org/about-cyanide-code/cyanide-code

318 RJC Code of Practices GuidanceD Implementation guidance
COP 40.1: Cyanide
Members in the mining sector using cyanide in the recovery of gold and silver shall ensure applicable sites are certified
to the International Cyanide Management Code.

Points to consider:• Comprehensive information about the Cyanide Code is available from the ICMI’s website. Operations are audited by anindependent third-party auditor meeting the Cyanide Code’s criteria and using its verification protocol.
• If you use cyanide to recover gold and silver, you must adopt the Cyanide Code by becoming a signatory (the name of all
signatory companies and their operations are listed on the ICMI website).
•

Note that while the ICMI provides a three-year period in which to achieve compliance, to conform with the RJC COP you
will need to achieve compliance with the Cyanide Code (and be audited) within two years of joining the RJC.

• Remember that Cyanide Code certification applies to the level of the certified operation‚ not the signatory company. Make
sure that all your facilities and operations within the scope of your RJC membership, to which the Cyanide Code applies,
have been certified (or become certified before the RJC audit).
• If your operations are found in substantial but not full compliance with the Cyanide Code, they will be ‘conditionally’certified; you will then need to develop and implement a corrective action plan to achieve full certification. For the purposesof the RJC verification assessment, a situation of conditional certification under the Cyanide Code would normally result in aminor non-conformance under the COP.

Check:■■Do any of your operations use cyanide in the recovery of gold or silver?
■■If so, are you a signatory to the International Cyanide Management Code, and are the relevant operations certified tothe code?

E Further information
Websites:• Centers for Disease Control and Prevention, Cyanide
https://emergency.cdc.gov/agent/cyanide/index.asp• ICMI, International Cyanide Management Code for the Gold Mining Industry [the Cyanide Code]www.cyanidecode.org

Publications:• Australian Government, Cyanide Management Handbook (2008)https://archive.industry.gov.au/resource/Documents/LPSDP/LPSDP-CyanideHandbook.pdf

RJC Code of Practices Guidance 319

(COP 41) Mercury
A Definitions and applicability
This provision applies to RJC members in the mining sector who use mercury in processing or have it in saleable products,
by-products or wastes.
Mercury, also known as quicksilver, is a naturally occurring element found in rocks in the earth’s crust. It is a heavy, silverywhite metal which is liquid at room temperature and evaporates easily. It exists in several forms: elemental (metallic) mercury,
methylmercury and organic compounds, and inorganic mercury compounds. Mercury has been recognised as a chemical of global
concern owing to its potential to travel long distances through the air, its persistence in the environment once put there by people,
its ability to concentrate as it rises up the food chain and its significant negative effects on human health and the environment.
Source:• UN Environment Programme (UNEP), Mercury General Informationwww.unenvironment.org/explore-topics/chemicals-waste/what-we-do/mercury/mercury-general-information

B Issue background
Over the past 50 years, mercury’s toxicity has been well documented and many countries have taken steps to reduce its use
and release, and to protect their citizens from exposure to it. Mercury has been used in many products that can eventually
end up releasing it into the atmosphere or in global waters. Once released, mercury can persist in the environment where
it circulates between air, water, sediments, soil and living organisms in various forms. Atmospheric mercury can travel long
distances through the air and be incorporated (and transformed into its more toxic form, methylmercury) by micro-organisms,
where it can ‘bio-accumulate’ as it progresses up the food chain. In people, mercury can cause damage to the nervous system,
thyroid, kidneys, lungs, immune system, eyes, gums and skin. The unborn and young are the most susceptible and neurologicaldamage to the brain caused by mercury cannot be reversed.
Mercury is not used for processing in large-scale mining, but at some gold mines it is produced as a by-product because it
occurs naturally in the ore body, usually in the form of a stable compound of mercury sulphide. In the artisanal and small-scale
mining (ASM) sector, metallic mercury is commonly used for gold recovery, in many cases by means of illegal supply chains as
countries move to ban its use. For artisanal miners, constrained by poverty and few alternatives, mercury amalgamation often
offers the best technology available. In most cases, it produces a higher gold recovery rate than the mercury-free techniques
available, such as gravimetry.
High prices of gold trigger significant growth in ASM and, consequently, mercury use. The United Nations Environment
Programme (UNEP) 2013 Global Mercury Assessment1 estimates that artisanal and small-scale gold mining is now thelargest sector demand for mercury, and the largest source of mercury emissions and releases in the world. Workers and theirfamilies involved in small-scale gold mining are exposed to mercury pollution in several ways, including through inhalation
when heating amalgam to vaporise the mercury. ASM can also release mercury into river systems, where it contaminates byconcentrating along the food chain and so poisoning people and communities downstream.

C Key regulations, standards and initiatives
International standards
After some years of negotiation, the Minamata Convention on Mercury (www.mercuryconvention.org) was finally adopted in
October 2013 and entered into force on 16 August 2017. A global treaty signed by 101 countries, the Minamata Convention
addresses permitted uses of mercury as a means of reducing releases to the environment. Elements of the convention for themining and metals sector include:• controls on the supply of and trade in mercury, notably mercury recovered as a by-product in non-ferrous metals production;• measures to reduce emissions from power plants and non-ferrous metals facilities producing copper, gold, lead and zinc;• measures to reduce emissions from ASM for gold; and• the environmentally sound management of wastes containing mercury.

1

UNEP, Global Mercury Assessment (2013)
http://wedocs.unep.org/bitstream/handle/20.500.11822/7984/-Global%20Mercury%20Assessment-201367.pdf?sequence=3&isAllowed=y

320 RJC Code of Practices GuidanceThe Minamata Convention also calls on all signatory countries to develop national action plans that include:• efforts to help formalise or regulate ASM for gold (see box ‘Formalising ASM to tackle mercury use’);• baseline assessments to estimate the quantities and uses of mercury in ASM for gold;• support for mercury-free alternatives and strategies to reduce emissions and exposure to mercury;• development of public health strategies and public awareness campaigns for affected communities (including strategies for
involving stakeholders in national action plan development);• measures to manage trade and prevent the diversion of mercury and mercury compounds from both foreign and domestic
sources to use in artisanal and small-scale gold mining and processing;• the elimination of whole ore amalgamation, open burning of amalgam or processed amalgam, burning of amalgam in
residential areas, and cyanide leaching in sediment, ore or tailings to which mercury has been added without first removing
the mercury; and• a defined implementation schedule.
The Alliance for Responsible Mining (ARM) (www.responsiblemines.org) actively promotes mercury-free ASM as the best
available technology under its Fairmined Standard.2 At the same time, the alliance acknowledges that mercury plays animportant role in current ASM processing methods and that any effort to reduce or eliminate its use must be accompanied bycapacity building and technical support for the miners. This approach is implemented on the ground through ARM’s producer
support initiatives for certification against the Fairmined Standard.
For example, ARM requires artisanal miners seeking certification to use a concentration process (gravimetry, flotation,
handsorting, etc.) before amalgamation, make it obligatory to use retorts or other mercury recovery devices during amalgam
decomposition, recycle mercury by reactivation and separate mercury in tailings. All of these requirements serve to drasticallyreduce mercury emissions without jeopardising the rights of artisanal miners and their families to continue operating.

Formalising ASM to tackle mercury use
ARM believes that the national action plans called for by Annex C of the Minamata Convention offer a great opportunity
for formalising ASM in the gold sector, and has committed to implementing these in collaboration with miners,
governments, civil society and the mining industry. In doing so, it hopes to ensure that national mercury reduction
programmes have the intended positive impact on the thousands of communities that depend on ASM for gold to survive.
ARM stresses that implementing Annex C requires governments to invest in formalisation processes through appropriate
mechanisms and direct support that will guarantee miners’ access to training, credit and cleaner technologies. ARM alsoemphasises the need to raise awareness of health-related impacts of mercury among rural mining communities.

International initiatives
The Artisanal Gold Council (AGC) (www.artisanalgold.org) actively develops practical solutions to reduce mercury use andemissions and identify appropriate solutions that conserve or eliminate the need for mercury and other reagents.
Mercury Watch (http://www.artisanalgold.org/our-projects/mercurywatch-org/) is an interactive monitoring system for global
mercury use in artisanal and small-scale gold mining. Maintained by the AGC, Mercury Watch maps and illustrates mercury
use estimates in ASM globally while providing information on individual projects related to mercury and ASM for gold. The
database is based on the most recent Arctic Monitoring and Assessment Programme (AMAP) and UNEP estimates3 andupdated data from researchers and other stakeholders.
Under the auspices of the UNEP Governing Council, the UNEP Global Mercury Partnership(https://web.unep.org/globalmercurypartnership) was established to further long-term international action to address
mercury release. The partnership’s overall goal is to protect human health and the global environment from the release of
mercury and its compounds by minimising and, where feasible, ultimately eliminating global, anthropogenic mercury releases
to air, water and land.

2

ARM, Fairmined Standard for Gold from Artisanal and Small-Scale Mining, Including Associated Precious Metals (2014)www.responsiblemines.org/images/sampledata/EstandarFairmined/Fairmined%20Stnd%202%200_2014_.pdf

3AMAP/UNEP,Technical Background Report for the Global Mercury Assessment 2013 (2013)www.amap.no/documents/doc/technical-background-report-for-the-global-mercury-assessment-2013/848

RJC Code of Practices Guidance 321

The Mercury Free Mining Challenge (www.mercuryfreemining.org) has been established to replace the use of mercury in ASM
mining. The challenge is offering a US$1,000,000 prize to the team or individual that discovers an environmentally friendly,
affordable means of separating crushed, finely divided gold from its ore.

National law
Many jurisdictions already have a legal and regulatory framework for mercury controls and management, so it is essential thatmembers are familiar with applicable law in all areas of operation.

D Implementation guidance
COP 41.1: Mercury in products, by-products and emissions
Members in the mining sector where mercury is contained in saleable products, by-products or emissions shall adopt
responsible management practices to control and reduce mercury emissions using best available techniques or best
environmental practices that take into account technical and economic considerations. At minimum, this shall be inaccordance with applicable law and in line with the Minamata Convention.

Points to consider:• Identify and quantify all sources and emissions of mercury and mercury compounds from your operations and establish
appropriate controls using cost-effective, best available technologies.
• A risk-based approach can be used to assess and prioritise your options, which could include acting to:•reduce or eliminate sources and emissions of mercury;•

substitute mercury and mercury compounds with less hazardous alternatives, where available; and•mitigate any impacts associated with handling and discharging mercury and its compounds by using pollution abatement
technologies such as mercury vapour recovery systems—in particular, these technologies should be used to tackle air
emissions, tailings and wastewater discharges so as to minimise mercury emissions to the environment.

• Each mine with more than trace amounts of mercury should have a mercury recovery system. This should be based on amercury mass balance that assesses the amount of organic and inorganic mercury in the waste rock and ore, and documents(or estimates, if measurements are not available) how much organic and inorganic mercury is released to air and water
during or after processing. This includes recording how much is produced as by-product, and how much remains in tailings
ponds, waste rock dumps, etc.
• Make sure that any mercury recovered from primary emission controls is not:•stored on site (unless a regulated repository elsewhere is not available);•

disposed of with tailings; or•sold or given away either directly or indirectly to an entity engaged in ASM for gold (mercury can only be sold for an end
use listed in Annex A (Products) or Annex B (Processes) of the Minamata Convention).4• Stay aware of relevant legislation and regulation controlling mercury. These will evolve over the coming years as countries
implement the Minamata Convention, so it will be important to stay up to date with applicable changes and to monitor legal
compliance.
• While production of mercury as a by-product is allowed under the Minamata Convention, you must make sure that thisis managed in compliance with applicable laws and regulations. For example, in the European Union, mercury produced
from non-ferrous mining is considered waste and must be disposed of without endangering human health or harming theenvironment.5

4

Minamata Convention on Mercury www.mercuryconvention.org/Portals/11/documents/conventionText/Minamata%20Convention%20on%20Mercury_e.pdf

5European Union, Regulation (EU) 2017/852 on Mercury (2017) https://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:32017R0852&from=EN

322 RJC Code of Practices GuidanceCOP 41.2: Mercury in mining and associated processing
Members using mercury in mining or processing activities shall take steps to control, reduce and, where feasible,
eliminate their use of mercury and mercury compounds, and their emissions and releases to the environment of
mercury. They shall use time-bound action plans for doing so.
a. Members shall not practise whole ore amalgamation or open burning of amalgam (or processed amalgam) under any
circumstances; in residential areas they shall not practise the burning of amalgam. They shall not practise cyanide leachingin sediment, ore or tailings to which mercury has been added without first removing the mercury.
b. Members shall take steps to prevent vulnerable groups being exposed to mercury, particularly children, women ofchildbearing age and pregnant women.

Points to consider:• This provision applies to RJC members that use mercury in their mining and processing activities.
• While mercury alternatives are preferred, they may not always be available for use, or technically or economically viable (forexample in ASM). Even so, the RJC COP supports the Minamata Convention in requiring the elimination of:•whole ore amalgamation;•

open burning of amalgam or processed amalgam;•

burning of amalgam in residential areas; and•cyanide leaching in sediment, ore or tailings to which mercury has been added without first removing the mercury.

• If you use mercury in any mining activities, make sure you have controls to prevent children, women of childbearing age andpregnant women from being exposed to it.
• Develop and implement documented time-bound plans for reducing and, where feasible, eliminating the use of mercury inmining and processing operations under your ownership or control. Consider alternatives such as:•

gravity concentration methods;•

direct smelting (generally only suitable for smaller masses of high-grade concentrate); and•chemical leaching (see COP 40 Cyanide).

• Review mercury elimination plans regularly to ensure measurable improvement.
• Within the socio-economic and political complexities of ASM enterprises, you may find opportunities to support thetransfer of technology that improves productivity and reduces reliance on mercury, particularly in the context of sourcing
relationships (see guidance on COP 8 Sourcing directly from artisanal and small-scale mining).
• If mercury continues to be used in ASM under your ownership or control, establish controls to minimise mercury emissions.6
Practical measures for reducing mercury use include:•

using more effective and efficient concentration processes that reduce the amount of mercury needed for amalgamation—for example, sluices, centrifuges, spiral concentrators, vortexes, shaking tables and flotation.

•using a retort or fume hood to capture and recycle mercury during the processing and refining stage—this can reduce
mercury emissions by 75 to 95 per cent.

Check:■■Do your operations produce mercury products, by-products or emissions?
■■If so, have you carried out a mass balance to assess the occurrence of organic and inorganic mercury across the site?
■■Do you have practices in place to control, reduce and, where feasible, eliminate mercury emissions?
■■Are you aware of, and in compliance with, applicable law concerning the use and control of mercury?
■■If you are a producer and use mercury amalgamation, have you sought alternatives, and have you taken steps toeliminate the activities specified in COP 41.2a?

■■If you are a producer, have you taken steps to ensure that vulnerable groups are not exposed to mercury?
■■If you are a producer, have you developed and implemented a time-bound plan to reduce and, where feasible, eliminate
the use of mercury in your operations?

6

UNEP, A Practical Guide: Reducing Mercury Use in Artisanal and Small-Scale Gold Mining (2012)
http://wedocs.unep.org/bitstream/handle/20.500.11822/11524/reducing_mercury_artisanal_gold_mining.pdf?sequence=1&isAllowed=y

RJC Code of Practices Guidance 323

E Further information
Websites:
Alliance for Responsible Mining (ARM)
www.responsiblemines.org/en/
Artisanal Gold Council (AGC)
www.artisanalgold.org
Mercury Watch, Charting the Improvement of Artisanal and Small-Scale Gold Mining
http://www.artisanalgold.org/our-projects/mercurywatch-org/
Minamata Convention on Mercury
www.mercuryconvention.org
UNEP, Global Mercury Partnershiphttps://web.unep.org/globalmercurypartnership

Publications:Global Mercury Project, Global Impacts of Mercury Supply and Demand in Small-Scale Gold Mining (2007)
http://archive.iwlearn.net/globalmercuryproject.org/documents/non_country%20specific/2006%20GMP%20Report%20
to%20UNEP%20GC24.pdf
International Council on Mining and Metals, Mercury Risk Management Position Statement (2009)https://www.icmm.com/en-gb/members/member-commitments/position-statements/mercury-risk-management-positionstatement
UNEP, Analysis of Formalization Approaches in the Artisanal and Small-Scale Gold Mining Sector Based on Experiences in
Ecuador, Mongolia, Peru, Tanzania and Uganda (2012)https://wedocs.unep.org/bitstream/handle/20.500.11822/11357/Formalization_Document_Final_June_2012.
pdf?sequence=1&isAllowed=y
UNEP, Global Mercury Partnership Resources
http://web.unep.org/globalmercurypartnership/publication_resources
UNEP, Global Mercury: Supply, Trade and Demand (2017)
wedocs.unep.org/bitstream/handle/20.500.11822/21725/global_mercury.pdf?sequence=1&
UNEP, A Practical Guide: Reducing Mercury Use in Artisanal and Small-Scale Gold Mining (2012)
http://wedocs.unep.org/bitstream/handle/20.500.11822/11524/reducing_mercury_artisanal_gold_mining.
pdf?sequence=1&isAllowed=y
US Agency for International Development, USAID Global Environmental Management Support (GEMS), Sector Environmental
Guideline: Artisanal and Small-Scale Mining (2017)www.usaidgems.org/Documents/SectorGuidelines/Mining_Guidelines_20170630_Final.pdf
US Environmental Protection Agency, Final Rule Concerning Mercury Emissions from Gold Mine Ore Processing and
Production Sources (2010)www.epa.gov/ttn/atw/area/gold_mines_fs_121610.pdf

324 RJC Code of Practices Guidance(COP 42) Mine rehabilitationand closure
A Definitions and applicability
This provision applies to all RJC members in the mining sector and to mine infrastructure and related projects such as roads,
rail lines, power lines and ports.
Mine closure is a process undertaken when the operational stage of a mine is ending or has ended, and the final
decommissioning and mine rehabilitation is underway.
Mine rehabilitation is the restoration of the post-mined landscape to the intended post-mining land use.
The mining lifecycle is the series of phases over the course of a mining project going from exploration, feasibility studies andconstruction through production to mine closure, rehabilitation and post-closure.

B Issue backgroundThe closure of mine sites needs to be planned as carefully as their opening. What happens at a site after it is closed is what
ultimately defines its long-term impact on, and contribution to, an area’s social, economic and institutional development. An
integrated approach to closure takes the environmental, economic and social considerations into account from an early stage
and continues throughout the mining lifecycle. Fundamental to this approach is the need to consider closure as a core part ofthe business.
The social and economic impacts of mine closure are usually significant and underline the importance of early preparation.
Workers, affected communities (including indigenous peoples and artisanal miners) and regulators are key stakeholders in
dialogues about mine closure and should be involved early in the planning process. Community participation is particularly
important when developing and implementing a mine closure plan.
Most mines close because the resource has been depleted and closure can be anticipated. Mines can, however, also close
prematurely, for example through low commodity prices, regulatory changes, technical challenges or social conflict.
Closure costs are most often substantially incurred after the mine is no longer generating revenue, so financial provisions forclosure must either be set aside by the company before or during active operations, provided by other revenue streams or
made available through security of other assets.
Historically, one of the biggest problems governments have had is who pays for closure activities when there is no clear
responsible party, for example if the mining company goes bankrupt or no longer exists. For this reason, many countries haverequirements for mining companies to provide financial assurance.
In broad terms, rehabilitation refers to the measures undertaken to return land on which mining has taken place to the agreed
post-closure uses. In some jurisdictions, the legal requirement is for restoration of the pre-mining land use, whereas in others
the end uses of the land are open to a process of negotiation, either with the regulatory authorities or with a broader set ofstakeholders.

RJC Code of Practices Guidance 325

Closing mines in areas with significant biodiversity
Since mining represents a transient land use, in areas with significant biodiversity values, the aspiration should be torestore land used for mining to a future use that takes these values into account (see COP 38 Biodiversity). Achievable
objectives and targets for biodiversity re-establishment are essential to give the operation a framework on which tobase its rehabilitation programme. These should be developed through a dynamic and iterative process involving mining
stakeholders and should take into account:• Relevant regulatory requirements and other guidelines.
• Effective consultation with key stakeholders.
• Competing interests to be understood and reconciled.
• All available information on biodiversity.
• Technical limitations.
• Pre-mining land uses and the extent of biodiversity degradation.
• Post-mining land tenure and land uses.
• Integration into whole-of-lease biodiversity management.
• Minimising secondary impacts.
• Other opportunities for biodiversity improvement.

Closure planning can be complex as it usually deals with time horizons that can stretch over decades. Planners must try to deal
with social, economic and environmental parameters that cover the mining lifecycle, and post-closure generations are boundto change. An integrated, iterative and disciplined approach is required to take account of various changing parameters.
Done well, effective closure planning can:• deliver more consistent and transparent engagement with affected and interested parties;• help communities participate in planning and implementing actions that underpin successful closure;• ensure closure decisions are better supported by stakeholders;• make it easier to manage the closure;• improve the accuracy of closure cost estimates;• minimise the risk of regulatory non-compliance;• identify potential problems in a timely manner;• progressively reduce potential liabilities; and• identify, and plan for, opportunities for lasting benefits.

C Key regulations, standards and initiatives
International initiatives
The International Council on Mining and Metals (ICMM) 2019 guidance on integrated mine closure(www.icmm.com/en-gb/environment/mine-closure/integrated-mining-closure) emphasises closure as an integral part of a mine’s
core business. It offers companies guidance on delivering key elements of mine closure planning and implementation, including:• establishing a knowledge base;• defining closure vision, principles and objectives;• ensuring ongoing stakeholder engagement;• identifying risks and opportunities;• designing closure activities;• estimating closure costs;• agreeing success criteria;• resourcing and implementing closure;• monitoring and managing closure; and• returning ownership.

326 RJC Code of Practices GuidanceNational law
Many jurisdictions regulate specific requirements for closure, including what infrastructure is required to be left or transferredto the state, and associated financial assurance mechanisms. It is essential that members are aware of applicable law andregulation in all jurisdictions of operation.
The state of Nevada has developed a reclamation cost calculator,1 which is reasonably widely used to estimate closure costs.

D Implementation guidance
COP 42.1: Closure plan
Members in the mining sector shall prepare and regularly review a mine rehabilitation and closure plan for each mining
facility. New facilities shall have a closure plan from start-up, and existing facilities shall establish a comprehensive plan
as early as possible.

Points to consider:• Start closure planning as early as possible to ensure risks and unknowns can be identified and reduced over time.
• Your closure and rehabilitation plan should:•

include closure targets and goals;•

consider maintenance and surveillance programmes for temporary closure of operations;•consider residual impacts from infrastructure, subsidence or acid-generating material;•

be referenced in corporate or site sustainability (or equivalent) documentation; and•be used and updated throughout the mining lifecycle.

• Make a suitably qualified person responsible for maintaining the rehabilitation and closure plan throughout the mining
lifecycle.
• Review your closure plan regularly: at least once a year and every time there is a significant change in the mine development,
for example new waste facilities, infrastructure or change in anticipated mine life.

COP 42.2: Engagement
For each mining facility, members in the mining sector shall engage regularly with local stakeholders, including
indigenous peoples, communities, artisanal and small-scale miners, employees and regulators, about mine closure andrehabilitation plans.

Points to consider:• Make closure planning an integral component of your stakeholder engagement programme (see COP 32 Stakeholder
engagement).
• Include key stakeholders (including affected communities, workers and regulators) in your regular reviews of the closureplan. This engagement should enable a good understanding of any changes involving stakeholders that could impact closureplanning (for example, changing demographics or the development of other livelihoods).

1

Nevada Standardized Reclamation Cost Estimator https://nvbond.org/

RJC Code of Practices Guidance 327

COP 42.3: Financial provisions
Members in the mining sector shall estimate the cost for implementing the mine rehabilitation and closure plan foreach mining facility, and shall establish financial provisions to ensure availability of adequate resources to meet closure
requirements. Closure funding estimates shall be reviewed periodically during the mining lifecycle.

Points to consider:• Start estimating costs as early as possible and update these regularly. In particular, make sure you:•

Increase the detail of cost estimates as the closure of the site approaches and more engineering detail becomes available.

•

Note that, unless otherwise stipulated by applicable law, closure costs should be based on reasonable estimates of actual
costs taking into account local conditions and cost structures.

•

Adjust funding arrangements to reflect any changes that arise during the annual reviews of closure plans required under
COP 42.1.

•

Take into account considerations such as post-mining land use, stakeholder objectives and regulatory requirements.

• Minimum considerations for appropriate financial instruments should include the availability of all necessary funds to cover
the cost of closure at any stage in the mining lifecycle, including provision for early or temporary closure.
• Financial provisions should as a minimum be in accordance with applicable law. In the absence of such laws, provisions may
be in the form of bonds, letters of credit or other financial instruments, or by self-insurance or self-guarantee. Financial
mechanisms managed by a third party may also be appropriate, particularly after closure has taken place. These include, forexample, fully funded escrow accounts (including government-managed arrangements) or sinking funds. Any acceptableform of financial guarantee must be provided by a reputable financial institution.
• Third-party review of closure plans and closure funding estimates can be used to strengthen your process. This kind ofreview needs to cover both technical and financial aspects and can be carried out by any qualified third party.
• In all cases, comply with applicable law, relying on internal reviews and any regulatory processes.

COP 42.4: Good practice rehabilitation
Members in the mining sector shall adopt good practice techniques for rehabilitating environments disturbed or
occupied by mining facilities. They shall seek to establish an appropriate self-sustaining ecosystem, or other postmining use agreed through stakeholder engagement during mine closure planning.

Points to consider:• Wherever possible, implement rehabilitation and closure progressively as individual sites within a mining facility aredecommissioned or exhausted and are no longer operational.
• In all cases, consider the risks and residual impacts from infrastructure, subsidence, acid-generating material, etc.
• Monitor the performance results for these sites and incorporate them into regular reviews of the mine rehabilitation andclosure plan.
• Make sure that rehabilitation adheres to the mine closure plan, noting that it may involve very different landscapes andinfrastructure to pre-mine scenarios.
• Remember that native ecosystems may not always be the most appropriate and resilient options for rehabilitating land
disturbed by mining. For example, in areas where foreign species are already a part of local ecosystems, they may allow for
better self-sustaining ecosystems.

328 RJC Code of Practices GuidanceCheck:■■Is an up-to-date mine rehabilitation and closure plan in place for each mining facility?
■■Do your stakeholder engagement activities include discussions about mine closure planning?
■■Are rehabilitation and closure cost estimates up to date, and have adequate financial provisions been put in place?
■■Are good practice techniques being followed for rehabilitation?
■■Will rehabilitation establish a self-sustaining ecosystem, or other post-mining use developed through engagement withkey stakeholders?

E Further information
Websites:
Australian Centre for Geomechanics, Mine Closure
https://acg.uwa.edu.au/mine-closure
ICMM, Integrated Mine Closure
www.icmm.com/en-gb/environment/mine-closure/integrated-mining-closure
Nevada Standardized Reclamation Cost Estimator
https://nvbond.org/

Publications:
Anglo American, Mine Closure Toolbox, Version 2 (2013)www.angloamerican.com/~/media/Files/A/Anglo-American-PLC-V2/documents/approach-and-policies/environment/toolboxmain-brochure-lr.PDF
Australian Government, Mine Closure and Completion (2006)
https://nt.gov.au/__data/assets/pdf_file/0015/203415/mine-closure-and-completion.pdf
ICMM, Integrated Mine Closure: Good Practice Guide, Second Edition (2019)www.icmm.com/website/publications/pdfs/closure/190107_good_practice_guide_web.pdf
ICMM, Planning for Integrated Mine Closure: Toolkit (2008)
www.ibram.org.br/sites/700/784/00001524.pdf
Mining Association of Canada (MAC), Towards Sustainable Mining: Tailings Management Protocol
http://mining.ca/towards-sustainable-mining/protocols-frameworks/tailings-management-protocol

RJC Code of Practices Guidance 329

Acknowledgements

Standards Committee
The revision of the COP was overseen by the RJC Standards Committee, co-chaired by Ainsley Butler (for non-industry members)
and Charles Chaussepied (industry members) and comprised of: Anouchka Didier, Assheton Stewart Carter, Cecilia Gardner,
Claire Piroddi, Diana Cuilillas, Didier Backaert, Eleonora Rizzuto, Estelle Levin-Nally, Ian Rowe, Inga Van Nuffel, Hiren Vepari,
Jean-Baptiste Andrieu, Jenny Hillard, Joelle Ponnelle, Jonathan Hobbs, Marijke Achten, Michael Geelhand de Merxem, Michele
Bruelhart, PhaedonStamatopoulos, Purvi Shah, Stephane Fischler, Tehmasp Printer, Tim Carter, Tuesday Reitano, Yves BertranRJC teamAnne-Marie Fleury and Andrew Cooper led the process with support from Monica Staniaszek, Maria Mursell, Peter Dawkins,
Mikaela King-Stevens, BethanHerbert and Gerhard de Meyer.

Consulting Team
Experts and consultants who contributed to the COP include Sian Lewis, Richard Earthy, Emily Sadler, Jessie Fischer andBeth Holzman, Magali Barraja, and Kate Harcourt.

330 RJC Code of Practices Guidance