Sustainable Sparkles: Embracing the Circular Economy in the Jewelry Industry
What initiatives are currently in existence?
A circular economy is defined as an alternative to the current linear economy in which we extract resources, produce, consume and generate waste. In a circular economy, systems and products are designed to allow all materials to be recovered and reused at the highest possible value. An alternative system is a “closed loop” or “circular economy” system. This is possible thanks to the circular design and reverse logistic implementation that allows products to be recovered through different strategies such as rental, reuse, sharing, resale and, as a last option, recycling.
What is the status of the linear supply chain in the jewelry industry?
The above illustration depicts a simple linear supply chain. Within the context of the jewelry industry, the linear supply chain commences with the extraction of raw materials by both large-scale and artisanal and small-scale miners. Subsequently, the extracted materials is acquired by traders who then transfer it to the jewelry manufacturers. The manufacturing process involves designing, producing, and packaging the jewelry, which is then sold by retailers and introduced into the market. Ultimately, consumers purchase jewelry items and utilize them for a certain duration before discarding them, thereby contributing to the accumulation of waste in landfills. It is imperative to acknowledge that within the jewelry sector, the end of life phase predominantly encompasses ‘day-to-day’ jewelry or fashion jewelry. Certain jewelry brands also encompass ‘forever pieces’ or fine jewelry, which are intended to be passed down through generations.
As previously stated, this model is characterized by its simplicity, omitting detailed stages and procedures such as gold refinery, transportation, etc. This linear supply chain is associated with significant detrimental effects on both the environment and society, which I have briefly elucidated in my article titled “Slow Jewelry Concept.”
What are the viable circular economy strategies that the jewelry industry can adopt for implementation?
The above illustration is expounded upon in each subsequent section.
Take: Responsible material sourcing — Mining
- Adopting responsible extraction techniques with less/no harmful methods of extracting materials such as gold from ores, including cyanide-free leaching, mercury-free mining or bio-mining, utilizing bacteria to decompose sulfide minerals and extract gold, as an instance.
- The implementation of optimal standard for managing and supervising the ecological and societal consequences of mining, encompassing the reduction of water usage, restoration of land and biodiversity, assurance of workers’ well-being, fair wages, child labor elimination and involvement of local communities. For example, the certification schemes, such as Fairmined Standard, to confirm the dedication to ethical and responsible mining practices. Until now there are brands who could gain this certificate, for example the brand Futura Jewelry and Bliss Lau use the Fairmined gold which mined without mercury and supported mining local communities.
- The circular economy has found widespread application in the mining industry, primarily through the reprocessing of tailings materials to extract residual minerals. However, there exist ample opportunities to leverage the resources available to mining operations, such as the reuse or donation of used equipment. In addition, the impetus for this transition is largely driven by industrial symbiosis, collaborative partnerships between various corporations and sectors within the industry. Rather than pursuing environmental innovations in isolation, sharing knowledge across the supply chain can facilitate more efficient integration into operations and generate greater value.
Take: Reusing existing materials and/or new methodologies (e.g. Lab grown diamond) — Zero mining
As depicted in the aforementioned illustration, the “Take” phase is positioned outside the cycle. This alteration is motivated by the possibility of sourcing materials from pre-existing sources, such as repurposing existing gold jewelry, or by considering the utilization of lab-grown diamonds. By adopting this approach, the necessity for mining and extracting raw materials is completely eradicated. Some jewelry brands have already implemented or have plans to implement this strategy in the future. The Brilliant Earth brand was among the pioneers in the sale of laboratory-grown diamonds in 2012, offering a mining-free alternative to natural diamonds. The brand La Maison Couture has set forth an objective to incorporate recycled/upcycled materials and metals in all of their collections by the year 2030, aligning with their forthcoming Zero Extraction Policy.
Nonetheless, it is crucial to acknowledge that the lives of over 100 million individuals are directly or indirectly reliant on mining. This specifically refers to the Artisanal and small-scale mining that plays a pivotal role in alleviating poverty by generating employment opportunities for numerous individuals, enabling them to provide supports for their families. Therefore, contemplating the elimination of mining within the jewelry industry could have catastrophic consequences as the detrimental impacts this industry has on the environment. Hence, Responsible mining is the superior option for jewelry brands, or they have the alternative of integrating both strategies into their business models.
Make: Design
- The design of jewelry items that possess durability and repairability to evolving trends and preferences can effectively prolong the product life cycle and minimize the demand for raw materials. One approach is the utilization of modular design, which enables customers to personalize their jewelry by altering or supplementing components. The development of modular products that possess the ability to be disassembled into multiple parts at the conclusion of their life cycle facilitates the complete recovery of each component.
- The utilization of recycled or reclaimed metals and gemstones, coupled with ethical and traceable sourcing, can mitigate the environmental and social consequences of mining, processing new materials and the waste generated from discarded jewelry. This may involve the use of recycled gold from e-waste or certified fair-trade gold from artisanal and small-scale mining. An instance is the BaYou With Love brand, which reuses gold from electronic waste to create jewelry.
It is important to highlight that not all recycling methods are sustainable and suitable for inclusion in circular economy strategies. The definition of recycling is often ambiguous, as the origins of materials may not always be transparent. For instance, gold, diamonds, or other materials used in recycling processes may have originated from illegal mining operations involving child labor. Therefore, the recycling of such minerals cannot be considered sustainable.
Make: Production and distribution
- The implementation of circular economy practices, including renewable energy use, reduced water consumption, optimized logistics, and minimized packaging, can decrease the carbon footprint and pollution of the jewelry industry in the production and distribution processes while conserving resources and reducing costs. Some brands are implementing sustainable practices in their manufacturing processes. For example, Wild Fawn incorporates various policies, including energy and water policy, in order to mitigate the adverse effects of its brand. Maren Jewelley employs various strategies, including the utilization of eco-friendly materials such as recycled papers, within their packaging practices.
- Another significant concern pertains to the concept of extended producer responsibility (EPR), which utilizes monetary incentives to motivate manufacturers in the development of environmentally sustainable products, as they bear the responsibility for the costs associated with managing their products during the final stage of their lifecycle.
Extended Producer Responsibility is a concept where manufacturers and importers of products should bear a significant degree of responsibility for the environmental impacts of their products throughout the product life-cycle, including upstream impacts inherent in the selection of materials for the products, impacts from manufacturers’ production process itself, and downstream impacts from the use and disposal of the products. Producers accept their responsibility when designing their products to minimize life-cycle environmental impacts, and when accepting legal, physical or socio-economic responsibility for environmental impacts that cannot be eliminated by design.
- Industrial symbiosis as already mentioned is an important issue for brands to consider. Industrial symbiosis refers to the collaboration between industrial facilities or companies, wherein the waste or by-products of one entity are utilized as raw materials by another. For instance, BaYou With Love, utilizes gold extracted from Dell e-waste to produce their jewelry.
Use
- In order to promote responsible consumption, individuals should have the ability to engage in sustainable practices such as:
- utilizing ethical products (e.g. purchasing jewelry that used fairmined gold)
- opting for second-hand purchases
- repairing their products
- renting items
- reusing their unwanted jewelry pieces by proactively requesting the respective brand to recycle them and subsequently design a novel product. For instance, Stephen Webster’s RESET initiative provides individuals with the chance to bring their unworn jewelry for repurposing and creating new pieces.
- sharing with their acquaintances
- in the context of ‘day-to-day’ types of jewelry, it is imperative for consumers to diligently maintain their pieces in order to safeguard them against regular wear, while also promoting the circularity of their jewelry by considering options such as resell or recycling subsequent to use.
Reverse logistic
- Jewelry brands are required to offer consumer services that facilitate the sale of their products when customers no longer desire them which involves reverse logistic process (buy-back), or enable the exchange of their existing product for a new design (recycling and melting the original product to create a new one). Reverse logistics can facilitate the collection of a product, which can subsequently be rented, or resold. These services can establish a closed-loop system that sustains the circulation of materials and minimizes waste. The circular economy model places significant emphasis on the shift from “ownership” to “access”, aiming to reduce consumer inclination towards product ownership and promote temporary product utilization. Once its purpose is fulfilled, the product is either returned to the service provider or transferred to another user.
- Certain jewelry brands are offering buy-back, leasing alternatives to their customers, or partnering with platforms that enable the resale of second-hand jewelry.
- Digital product passport (DPP), would encompass comprehensive details regarding the origin, trajectory, sale, and reutilization of the product, substantiated by traceable and verifiable data. The implementation of a product passport will serve as a concrete narrative depicting the complete life cycle of the item, instilling confidence in consumers regarding its provenance, and validating its environmentally friendly attributes. According to some research it needs to entails seven data categories: 1- usage and maintenance, 2- product identification (e.g. country of origin), 3- products and materials (e.g. recycled contents), 4- guidelines and manuals, 5- supply chain and reverse logistics (e.g. customer return channels), 6- environmental data (e.g. environmental footprint) and 7- compliance (e.g. product specific regulation).
- Monica Vinader’s industry-first program, Product Passport, enables customers to track the entire journey of their jewelry, from its inception to its final production stage. The brand boasts a collection of more than 50 fully traceable pieces, which are crafted using 100% recycled gold and silver.
We’ve launched an industry-leading supply chain transparency initiative, powered by blockchain technology and in partnership with the world’s first net zero jewellery manufacturer, Ennovie. Our traceability programme allows customers to trace the origin of their jewellery; from design, materials sourcing, the craftsman, all the way to arrival at their doorstep. -Monica Vinader
It is noteworthy to emphasize that the jewelry industry is in its nascent phase of adopting circular strategies. The complexity of the jewelry supply chain, encompassing various stakeholders from mining to retail, is a crucial factor. The successful implementation of circular strategies necessitates challenging collaboration and coordination among these stakeholders. In addition, some strategies such as recycling gold from electronic e-waste is a costly process, limiting its implementation by many brands. Nonetheless, certain initiatives are making strides towards a circular economy, as demonstrated by the aforementioned brand examples.
As a final note, it is imperative to exercise caution regarding the specific types of circular business models that brands are adopting. Are they centralized, involving material control and recovery of own-brand goods, or disruptive, incorporating open standards and open data?
- In the context of a centralized circular business model, jewelry brands prioritize the management of materials and the retrieval of their own-branded products.
- On the other hand, a disruptive circular business model prioritizes open standards and open data, promoting collaboration and information sharing among diverse organizations. Through the adoption of interoperable systems, jewelry brands can facilitate resource sharing and circular practices. Open data fosters transparency and stakeholder collaboration, resulting in more efficient resource utilization and waste reduction.
Thank you for reading! I invite you to share your thoughts and insights in the comments section below.
