CIBJO, the World Jewellery Confederation, will hold its 2015 annual congress in Salvador, Brazil, May 4-6, 2015, with pre-congress meetings on May 2 and May 3. Salvador is the capital of the north-eastern Brazilian state of Bahia.

The congress will be hosted by Instituto Brasileiro de Gemas e Metais Preciosos (IBGM), working in close cooperation with the local jewellery association in Bahia, Associação Bahiana dos Produtores e Comerciantes de Gemas e Metais Preciosos, and with the strong support of the State Governor Jaques Wagner and his administration.

The main congress venue will be the Sheraton da Bahia Hotel, Salvador, located in a prime downtown location nearby the historic city centre of Pelourinho, which is a UNESCO World Heritage site and is renowned for its Portuguese colonial architecture, with historical monuments dating from the 17th to the 19th centuries.

“We are delighted to be issuing this invitation,” said Hécliton Santini Henriques, President of IBGM. “Our country is well-known as producer of gemstones, but we also are home to a vibrant jewellery industry and one of the most exciting developing markets in the world. We call on members of our industry from around the word to join us in the beautiful and exciting city of Salvador next May.”

“With the eyes of the world on Brazil today, it is most appropriate that CIBJO hold its first-ever Latin American congress in this vibrant nation,” said Gaetano Cavalieri, President of CIBJO. “As the largest country in a regional market worth more than $8 billion, I am sure that our industry will welcome the opportunity to learn more about what Brazil and Latin America offer. It promises to be an unforgettable event.”

CIBJO President Gaetano Cavalieri has presented an outline for sustainability in the cultured pearl sector, emphasizing that a comprehensive approach must be taken that addresses economic, environmental and social responsibility. He was speaking at the Sustainable Pearls Forum, which took place in Hong Kong on June 21.

The cultured pearl industry provides an opportunity to introduce concepts that often cannot be considered in other sectors of the jewellery industry, Dr. Cavalieri said, because while gemstone mining and mineral mining are inherently unsustainable, in that once gems and minerals have been removed from the earth they cannot be returned, pearls are sustainable, “because we possess the means and knowledge to initiate the natural growth of new products within an economically viable period of time.”

“From a business perspective it offers the cultured pearl industry a tremendous opportunity,” he said, “but along with that comes responsibility.”

The three basic elements that need to be addressed – economic sustainability, environmental sustainability, and social sustainability, which Dr. Cavalieri described as “stakeholder or community sustainability” – are not mutually exclusive, he said. “The inability to address any one of those elements will make it difficult, if not impossible to address the other two, certainly over the long term.”

Economic sustainability requires us to use our resources in an efficient and responsible way, so that our business will function profitably over the long-term, he stated. “The essential importance of economic sustainability must be appreciated by the business community, which needs be prepared to take a long-term approach, sometimes at the expense of short-term profit. It also needs to be appreciated by government regulators, who must do their utmost to protect their country’s natural environment and social fabric, while at the same ensuring that the economy is allowed to function,” he added.

Environmental sustainability should be a catchphrase of the cultured pearl industry, Dr. Cavalieri stressed. “When a consumer buys an item of pearl jewellery, they should feel that they have invested in our planet’s long-term survival, rather than having taken advantage of it,” he stated.

Referring to stakeholder, community or social sustainability, Dr. Cavalieri noted that because cultured pearls represent a sustainable or renewable activity, members of the grass-roots communities associated with the industry can be expected to remain actively involved for generations to come.  “It, therefore, is important that these communities be provided with fair and equitable opportunities to benefit from the pearl farming enterprise, so that they will be incentivized to invest and reinvest in their future and that of the entire pearl industry,” he said.

As a case study, Dr. Cavalieri mentioned Tahitian Cultured Pearl industry in French Polynesia, which between 1995 and 2012 saw the average value of its product fall almost 80 percent. Larger, more corporate Tahitian pearl farmers were able to operate successfully, he pointed out, but the family-owned farms operating at the grass roots of the industry, which receive only a very small share of the added value of the pearls that they themselves produce, are chronically under-financed, meaning that they lack the ability to invest the time and money necessary to achieve the full potential of their marine concessions.

“Successful pearl farming is the result of careful and responsible maintenance of both oysters and the aquatic environment in which they are kept, as well as time provided to allow the nacre to develop,” Dr. Cavalieri said. “But many of French Polynesia’s family-owned farms felt they could do neither. With profit margins so low, they tried to compensate with increased production, and the result was lower-quality products and still lower prices. Pearl farms closed, and thousands of workers lost their jobs.  A lack of economic sustainability threated both environmental sustainability and stakeholder or community sustainability.”

Dr. Cavalieri also addressed the possibility of a Universal Pearl Grading System, which currently is being considered by the CIBJO Pearl Commission. “We realize that it is not an easy task, and that a variety of opinion exists. It will take time. But we are patient, and believe that such system will enhance transparency, and, as a consequence, consumer confidence. And let me remind you, to operate a sustainable industry, or any business enterprise, consumer confidence is an absolute prerequisite,” he said.

Photo caption: Speakers at the Sustainable Pearl Forum in Hong Kong (from left): Douglas McLaurin (Cortez Pearls), Shigeru Akamatsu (Mikimoto), Jacques-Christophe Branellec (Jewelmer), Josh Humbert (Kamoka Pearls), James Paspaley (Paspaley), Julie Nash (Sustainable Pearls & University of Vermont), Andy Hart (Tiffany & Co.), Fiona Solomon (RJC), Gaetano Cavalieri (CIBJO), Michael Krzemnicki (Swiss Gemmological Institute SSEF), Saleem Ali (Sustainable Pearls & University of Queensland), Kent Carpenter (Old Dominion University), Laurent Cartier (Sustainable Pearls & University of Basel), Louisa Ho (The Nature Conservancy) and David Wong (Fukui).

Meeting this morning in Antwerp, the heads of the jewellery and diamond industry’s four leading international representative bodies have agreed to establish “The Presidents Forum,” which is a joint consultative committee with its members being the presidents of each organisation. Together they will discuss and formulate coordinated strategies and policies for the industry on important issues of common interest.

Hosted by Dr Gaetano Cavalieri, President of CIBJO, the World Jewellery Confederation; this morning’s meeting included Ernest Blom, President of the World Federation of Diamond Bourses (WFDB); Maxim Shkadov, President of the International Diamond Manufacturers Association (IDMA); and Edward Asscher, President of the World Diamond Council (WDC). The meeting was chaired by Eli Izhakoff, Hon. Life President of CIBJO, WFDB and WDC.

Following the meeting, The Presidents Forum issued the following statement: 

“As the elected presidents of international organisations, each of which counts among its members the key national organisations and leading commercial bodies in their respective fields, we collectively represent the rank and file of the diamond, gemstone and jewellery industry worldwide.”

“The objective of The Presidents Forum is to reflect the interests of all participants and stakeholders in the industry through discussion and coordination.”

“Among our first order of business the presidents of CIBJO, WFDB and IDMA will engage with the Precious Stones Multi-Stakeholder Working Group to discuss the creation of acceptable due diligence guidelines to defend the integrity of the supply chain. The President of the WDC will be consulted.”

The Presidents Forum’s inaugural meeting was held against the backdrop of the 36th World Diamond Congress, which is currently taking place in Antwerp.

Photo Caption: Meeting in Antwerp during the World Diamond Congress (from left): Ronnie VanderLinden, IDMA Secretary General; Maxim Shkadov, IDMA President; Eli Izhakoff, Hon. Life President of CIBJO, WFDB and WDC; Jeffrey Fischer, IDMA Hon. Past President; Gaetano Cavalieri, CIBJO President; Edward Asscher, WDC President; Julien Drybooms, WFDB Vice President; and Ernest Blom, WFDB President.

CIBJO and Fairtrade International have signed a Memorandum of Understanding according to which Fairtrade commits to working with CIBJO and its member organisations to improving certified Fairtrade gold supplies to the jewellery markets and members of CIBJO-associated organisations, and CIBJO commits to facilitating and encouraging its members to adopt and integrate fairtrade gold and metals into their national supply chains.

The agreement was signed at the 2014 CIBJO Congress in Moscow by CIBJO President Gaetano Cavalieri and Fairtrade International’s fairtrade gold coordinator, Greg Valerio.

Fairtrade International is an organisation whose goal is to raise work and living standards in developing countries, and at the same time create sustainable economic opportunities. In the gold and precious metals sector it works with poorer and marginalised small-scale and artisanal miners with the aim of creating sustainable livelihoods through the creation of developmental standards, auditing of the chain of custody and certifying the finished product.

In working with artisanal mining sector, Fairtrade works to formalise small-scale mining;

eradicate mercury usage,thereby enhancing the state of the environment and public health; ensure that participants comply with internationally agreed-to conflict-free protocols; and eliminate both child labour and forced labour.

As part of the agreement, CIBJO and Fairtrade will work together to provide measurable developmental impacts for the small-scale and artisanal mining communities, and they will develop together educational programmes for the CIBJO membership and the greater jewellery industry, aimed at informing them about Fairtrade precious minerals and certification, and the contribution these are able to make in developing countries and regions.

Photo Caption: CIBJO President Gaetano Cavalieri (right) and Fairtrade’s Greg Valerio signing the MOU at the CIBJO Congress in Moscow.

Meeting in Moscow, the Pearl Commission  discussed a project being promoted by Jeanne Lecourt, a Vice President of the body, to create a Unified Pearl Grading System. She described her work over the past year, since the project was raised at the 2013 Congress, holding discussions with pearl trading companies.

Ms. Lecourt said  company representatives had been positive in their feedback, saying a universal language was needed, particularly at the retail level so that consumers received answers to their queries in the same common language wherever they are in the world.

Ms. Lecourt said she had not held talks with producers so far because she was waiting for the project to get off the ground and receive formal approval from the Pearl Commission.

The Commission had already agreed to set up a Working Group for the project at the 2013 Congress. Ms. Lecourt and Pearl Commission President Ken Scarratt invited delegates interested in being a member of the Working Group to fill in an application form.

Mr. Scarratt apologised for the one-year delay in getting the project off the ground since the past Congress, saying he had always carried out a Reason For Action exercise before going ahead with projects.

Mr. Scarratt reported to members of the Commission about changes that had been proposed to its Pearl Book. Among several changes to text were that in the weight definition, it would say: “If the drill hole of a natural pearl has been plugged, then it is important that this is stated when the weight is declared.”

Photo Caption: At the dais during the Pearl Commission meeting in Moscow, from left: Jeanne Lecourt, Pearl Commission Vice President; Shigeru Akamatsu,Pearl Commission Vice President; Kenneth Scarratt, Pearl Commission President; and Dr. Eduard Akhmetshin, of the D. Mendeleev University of Chemical Technology in Russia.

CIBJO’s Sector B and C, which respectively deal with manufacturing and technology, and distribution at retail, met jointly at the CIBJO Congress in Moscow, and had as their themes security, jewellery manufacturing and Corporate Social Responsibility.

The meeting was led by Sector B’s Executive Vice President, Simon Rainer, who also serves as CEO of the British Jewellers’ Association.

The first speaker, Nigel Paxman, the CEO of secured transportation and logistics company Malca-Amit, described security as a subject that posed different challenges from country to country, city to city, and even on different streets. He said that although Western Europe was regarded as a generally safe place, it had suffered major, multi-million dollar thefts.

He cited the Brussels airport heist of February 2013 with the theft of $50 million in valuables, including diamonds. He also said there had been high-profile heists in London, Cannes, and further afield there had been unconventional thefts in Dubai and Hong Kong.

Mr. Paxman said criminals were daring and original in their approach, meaning the jewellery industry had to remain constantly vigilant. There had been thefts of expensive diamonds at trade shows that had taken place in as little as three seconds. In addition, jewellers had to be particularly observant and watchful when doing business with new potential clients.

Mr, Paxman said the jewellery was being aided by cutting-edge software and devices on the market that had previously only had military applications, while armoured vehicles had also become increasingly sophisticated in recent years.

He closed by urging jewellers to pack their precious stones and jewellery extremely carefully when dispatching them via air. “The airlines do not handle your goods with kid gloves in the way that we do. They throw the packages around despite them being valuables. This can cause scratches and damage to the goods inside the parcels if they are not packed properly.”

Speaking on the subject of jewellery manufacturing was Gay Penfold, Centre Manager Jewellery Industry Innovation Centre (JIIC), Birmingham, in the United Kingdom. The theme of her speech was innovations in jewellery design and manufacturing.

She explained how the JIIC supports a wide cross section of industry through its research, knowledge transfer activities, training, mentoring and industry focused collaborative consultancy and projects. JIIC provides expert help in the use of highly complex CAD/CAM computerised design programmes, and laser technologies.

The centre’s clients include designer makers and start up businesses, small to medium size enterprises and large companies with a global presence from a wide range of industries, including architecture, animation, automotive, jewellery and silversmithing, micro engineering, museums, product and furniture design.

Professor Marylyn Carrigan, Co-Director of The Centre for Trust and Ethical Behaviour at the Coventry University Business School in the United Kingdom described how many firms had been hit by a consumer backlash after being discovered to have behaved in a way that was regarded as not being in the spirit of CSR. In addition, the proliferation of media channels meant poor corporate behaviour was likely to be widely reported, including on social media.

Professor Carrigan summarised CSR as being honest, doing no harm, being trustworthy and having a cooperative approach to competitors.

Ethical jewellery maker and seller Vivien Johnston, who established Fifi Bijoux, and is also a campaigner for ethical gold, spoke about her approach to business. After graduating from Glasgow School of Art, she became head of design for a commercial jewellery company. “They put me in charge of sourcing, and I didn’t like what I saw.”

She said she campaigns for the rights of mineral workers, and her label does not use gold, silver and platinum mined with cyanide and mercury.

Meanwhile, well-known campaigner Greg Valerio spoke on the issue of Fairtrade gold. By buying Fairtrade gold you are making a difference to the lives of small scale artisan miners and their communities, he said.

Mr. Valerio said that Fairtrade International is the world’s first independent ethical certification scheme for gold, and comes exclusively from artisanal and small-scale miners. He described how miners must meet standards on safety, worker rights and the environment, and that buying Fairtrade gold makes a substantial difference to the lives of miners, their families and their communities.

Buying jewellery with the Fairtrade gold stamp means you know the small-scale and artisanal miners were paid a fair price, which gives them financial security. They also receive an extra amount of money to invest in building the future of their families and their communities, through education, medical care or environmental projects, he said.

The final speaker of the session was Willie Hamilton, Sector C Executive Vice President and CEO of The Company of Master Jewellers in the United Kingdom. He called for a change in the attitude of the trade.

“The best thing to do if you want to find out is simply to ask. What are you selling, and where is it from. These are questions that you must be asking in order to be an ethical and transparent business, Mr. Hamilton said

Photo Caption: The Sector B and C session in session at the CIBJO Congress in Moscow.