Gold Supply Chain

We are aware of the issues being raised over mining practices and we take them very seriously.

Signet expects our business partners to adhere to socially and environmentally responsible business practices. We take the impact of our company’s supply chain seriously and we believe that gold should be extracted and processed in a manner that respects the needs of current and future generations.

Signet believes that it is best to strive for improvements in mining practices and supply chain conditions through industry initiatives so as to maximize our effectiveness in addressing these issues. Such industry bodies have much greater credibility with governments and international organizations, whose co-operation is essential in successfully tackling these matters.

Signet believes meaningful reform must incorporate a wide range of industry stakeholders to ensure that responsible practices are developed and can be followed all the way through the supply chain. Without the engagement of all segments of our industry, individual commitments to responsible practices by retailers will not in the long term solve the problems highlighted by groups such as No Dirty Gold.

Responsible Jewellery Council
Therefore, the Responsible Jewellery Council (RJC), a non-profit organization, was founded in May 2005. RJC is unique in that it seeks to promote and develop responsible social, ethical and environmental business practices throughout the diamond and gold jewelry supply chain from mine to retail. Membership of RJC is comprised of companies and trade groups that, in total, are representative of the entire supply chain, from mine to retail.

Jewelers of America, the US national trade association of retail jewelers, of which we are a member, is one of the founders of RJC, as were we. RJC has developed a set of Principles and a Code of Practice for companies from mining through to retail involved in the worldwide diamond and gold jewelry industry. RJC has consulted widely with many stakeholders in the jewelry industry on the development of its Principles, and it’s Code of Practices which have now been published and outline the ethical, social, human rights and environmental practices to which RJC members should adhere. This includes a comprehensive mining specific responsible sourcing code.

RJC requires that members have independent auditors verify their compliance with responsible practices, as defined by the RJC Code of Practices. In addition, RJC plans to introduce a Mining Supplement to its system later this year.

RJC believes there is a need for an open and transparent approach and believes that by working in collaboration with civil society and governments it can promote and develop responsible business practices throughout the supply chain. Therefore, RJC places importance on ensuring that interested parties, including NGOs, are represented and given the opportunity to be part of the overall consultation process.

For more information regarding RJC’s mission statement, founding members, and other information, please visit www.responsiblejewellery.com.

Other Industry Initiatives
In addition, we have also been supportive of the Initiative for Responsible Mining Assurance (IRMA), launched in Vancouver, Canada, in June 2006. IRMA consists of jewelry and gold miners, industry bodies, and human/environmental rights groups, which have been working together to develop comprehensive responsible sourcing standards for mining operations.

For more detailed information about responsible gold mining, please visit www.trustingold.com and www.responsiblegold.org.

No Dirty Gold - Golden Rules
In January 2006 Signet signed up to the Golden Rules, and in doing so committed to sourcing, where possible, an increasing percentage of our gold, subject to adequate availability at competitve prices, from mining activities:

• That, in new mining developments, do not employ shallow water submarine or riverine tailings disposal.
• Where basic human rights are respected by all parties involved in the mining, processing, and manufacturing of the products we sell.
• Where the involvement of local communities is sought and where priciples of free, prior, and informed consent by the relevant parties are adhered to.
• Where workers' rights and labor standards are respected.
• Where there is no contribution to armed or militarized conflict.
• That do not threaten nationally or internationally designated protected areas or areas of high conservation or ecological value.
• That prohibit the forced displacement of communities for new mines or expansion of existing mining developments.
• That will not result in uncontrolled sulfuric acid drainage into soil, groundwater, and the environment.
• That have provided for appropriate financial guarantees to cover the costs of clean-up and mine closure.