Social Ethical & Environmental Policies

The Group has a formal social ethical & environmental (“SEE”) governance framework with SEE principles and policies being included in the schedule of matters reserved for the Board. The Group Chief Executive has been designated as the director responsible for SEE matters including those relating specifically to climate change, and reports to the Board on a regular basis.

The Group SEE Committee chaired by the Group Company Secretary, and consisting of senior managers from the UK and US, has responsibility for the implementation of the various aspects of the SEE principles and policies, including climate change initiatives, through a program approved by the Board.

The procedures for SEE risk management are embedded within the management structure of the Group. SEE risks are discussed in the Risk factors section. However, the Group’s share of the worldwide jewelry and watch market is less than 3% of the total. Therefore, it is the Group’s belief that it can be most effective in influencing improvements in the supply chain by working with other industry representatives who together can, by concentration into a single industry voice, be representative of many aspects of the supply chain and use their combined influence in working to improve the supply chain as a whole. In support of this position, the Group Chief Executive is on the Board and is Chair Elect of Jewelers of America (becoming chair in July 2009) and chairs its Ethical Initiatives Committee. He is also a director of the Responsible Jewellery Council (“RJC”) (as is the Group Company Secretary).

The Board has adopted a Statement of SEE Principles (“Principles”) outlining the Group’s policy to operate as a profitable and reputable specialty jewelery retailer, the Group’s responsibilities to various stakeholders and the SEE principles by which it operates.

Supply Chain Standards

The Group has a Supplier Code of Conduct (“Supplier Code”) and policies on business integrity, health and safety, the environment and labor standards. The Supplier Code applies to suppliers and agents with whom Signet deals directly. They are encouraged to ensure that the Supplier Code is communicated throughout the supply chain.

Most of the raw and processed materials for the merchandise sold by Signet are traded on commodity exchanges or through multiple brokers and traders thereby making the original source difficult to trace. Signet believes that SEE issues at the mining, trading and secondary processing phases of the supply chain are more effectively managed through co-operation within the industry.

Conflict diamonds

One of the issues facing the Group and the diamond sector is conflict diamonds. These are diamonds sold by rebel movements to fund military campaigns. The Group has worked with industry members, the United Nations, government bodies, commercial interests and civil society to introduce an effective system for the certification of the source of uncut diamonds. This system, known as the Kimberley Process Certification System (“KPCS”) was formally adopted in November 2002 and came into operation during 2003. Details regarding the KPCS are available at www.kimberleyprocess.com.  The World Diamond Council (“WDC”) has also introduced a system of warranties for the trade in polished diamonds whereby the seller confirms that the diamonds comply with the KPCS. Details concerning the WDC are available at www.diamondfacts.org. The Group has trained its buying staff and sales associates with regard to the KPCS and the WDC system of warranties requirements and operation. The audit of these procedures as required by KPCS is undertaken, and the audit results have confirmed the Group’s compliance and the Group has been commended for its robustness in this area.

The Responsible Jewellery Council

As Signet believes it can be most effective in influencing improvements in the supply chain by working with other industry representatives it has played a leading role in the formation of the RJC. The RJC is an industry group representing the entire length of the diamond and gold jewelry industry supply chain from the mine to retail. In 2004, Signet was one of the signatories to a Statement of Intent that formed the basis of an agreement for further co-operation to promote increased consumer confidence and integrity in diamond and gold jewelery by promoting responsible business practices throughout the industry. As a result the RJC was formed in 2005 as a not for profit organization whose members are participants in all aspects of the diamond and gold jewelery industry. The RJC mission statement is to promote responsible practices relating to business ethics, social, human rights, and environmental performance throughout the diamond and gold jewelery supply chain, from mine to retail. A key membership requirement of the RJC is an independent assessment of compliance with the Code of Practices in accordance with the RJC Responsible Practices Framework which was launched in December 2008. More information is available from www.responsiblejewellery.com.

Signet has initiated this review process of compliance with the Code of Practices, and will be working to complete its assessment by the end of fiscal 2011.

Environment

The direct environmental impact of Signet’s operations is considered to be relatively low compared to many business sectors and to other retailers. Notwithstanding Signet takes its environmental performance seriously and seeks opportunities to improve it. The Group has been implementing eco-efficiency initiatives to reduce energy use since 2003 and continues to assess further opportunities to minimize resource use. In the UK, The Carbon Trust carried out a review of Signet's head office and store emission levels in 2009, and recommended a number of initiatives. These initiatives have been finalized and will be implemented by the end of fiscal 2011, with the aim of a significant reduction in green house gases.

Community affairs

Both divisions have an active local community relationship program. During fiscal 2009 the Group advanced various employment sourcing relationships with a number of community organizations relating to people who are disabled, being rehabilitated or suffering from development difficulties. The Group is committed to continuing these community activities in fiscal 2010.

Charitable support

Signet believes it is best to give support to a small number of specific charities rather than fragment its charitable giving. In the US, support is primarily given to The United Way, St. Jude Children’s Research Hospital and Jewelers for Children, the industry’s charity. In the UK, the Group primarily supports the Princess Royal Trust for Carers. During the period the Group made provision for total charitable giving of $4,761,000 (fiscal 2008: $4,516,000). This included direct charitable contributions of $640,000 (fiscal 2008: $734,000), of which $144,000 (fiscal 2008: $222,000) was in the UK and $496,000 (fiscal 2008: $512,000) was in the US, and marketing initiatives on both sides of the Atlantic resulting in additional charitable contributions of $4,121,000 (fiscal 2008: $3,782,000). No political donations were made in the US or the UK by the Group in the period (fiscal 2008: $nil).

Human rights

Signet supports the Fundamental Conventions of the International Labor Organization and the United Nations Declaration of Human Rights and encourages support and respect for these principles within its sphere of influence through the Supplier Code. Signet is working at a senior executive level to address human rights in the jewelry supply chain on an industry wide basis, through the RJC described above.