Pandora, which makes more jewelry than any other jeweler in the world, takes an ethical stand against mined diamonds and uses only those made in laboratories.
Pandora A / S, which manufactures more jewelry than any other company in the world, will stop using mined diamonds, dropping another raw material contaminated by ethical issues.
The manufacturer of cheap cheap will now use diamonds made in laboratories, after last year it said it would stop using freshly extracted gold and silver. Although the diamonds mined were only destined for about 50,000 Pandora’s pieces last year, out of a total of approximately 85 million items, the move reflects a greater demand for sustainability.
Copenhagen-based Pandora said on Tuesday it will launch its first lab-made stone collection in the UK and turn to other markets in 2022.
“For millennials in particular, the awareness of what a lab-created diamond is is significantly higher than that of the previous generation, so it’s also a matter of education,” said Alexander Lacik, CEO of Pandora, in a telephone interview. “They are more concerned about sustainability issues.”
Despite decades of reforms, the jewelry market continues to be haunted by reports of human rights abuses in mines and factories. To address these concerns, Tiffany & Co. last year it began providing customers with details of individually and newly sourced registered diamonds that trace the path from a stone to the mine. Traders and manufacturers of lab-grown diamonds have proliferated in recent years, offering sustainable stones that are also more affordable than mines.
Global diamond sales fell 15% in 2020 due to blockages, travel restrictions and economic uncertainty, according to a research report by the Antwerp and Bain & Co. World Diamond Center. Rough diamond production fell by 20% in 2020 and prices fell by 11%.
Diamond sales and prices have risen this year, with De Beers selling more than $ 1.6 billion in rough diamonds, the highest amount since 2018. According to De Beers, the world’s largest diamond company, the young people remain loyal to mined stones and account for about two-thirds of world demand.
Pandora’s lab-made diamonds are grown from carbon with more than 60% renewable energy on average, a proportion that will rise to 100% next year.
Growing Bling segment
Pandora’s commitment last year to stop relying on newly extracted gold and silver in its jewelery means its entire production will use only recycled precious metals by 2025, part of a plan to make operations carbon-neutral. within four years.
The Bain report shows that the laboratory-created stones market is experiencing double-digit growth, and younger customers are especially interested in identifying sustainable producers. He also found that sustainability, transparency and social welfare “are priority issues” for consumers and investors.
It’s not just customers who are increasingly focused on sustainability. Nordea’s asset management unit recently said it only plans to maintain values that meet environmental, social and governance standards in all of its portfolios.
Pandora also emphasized price as a consideration behind its decision. The stones made in the lab cost about a third of the mines and the change will make diamond jewelry accessible to more consumers, he said.
“We’ve done a lot of research around the world to make sure this proposal can reach our existing customer base,” Lacik said. “They love the fact that we make diamonds accessible to them.”
Laboratory-made diamonds will have the same physical characteristics as mined stones, Pandora said. The new collection will include rings, bracelets, necklaces and earrings, he said.
Pandora’s focus on sustainable production methods has coincided with considerable growth in its market value. In the last year alone, the company’s shareholders have seen the value of their investment more than triple. And this week, Pandora has raised its profit guide to reflect faster-than-expected sales growth.
Shares of the Danish company soared to 7% and traded 5.6% higher from 12:03 pm in Copenhagen.
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–With the assistance of Kim Bhasin and Thomas Biesheuvel.