Signet Responsible Sourcing Protocol for Diamonds

David BouffardSignet Vice President, Corporate Affairs

World Diamond Congress

Dubai, UAE

May 2016

Signet FY15 Full

Agenda• Introduction

• Signet’s Corporate Affairs Structure

• Corporate Social Responsibility at Signet

• Signet’s Commitment to Responsible Sourcing

• Diamond SRSP

• OverviewSignet FY15 Full

Year Results

• Overview

• Categories

• Working Towards Compliance

• Development Timeline

• Compliance Reporting Timeline

• RJC Membership and Provenance

Claims

Introduction

• Signet’s Corporate Affairs Structure

• Corporate Social Responsibility at Signet

• Signet’s Commitment to Responsible Sourcing

Signet Corporate Affairs Structure

Strategic Corporate

Communications

Government

Relations

Industry Relations Corporate Social

Responsibility / Corporate

Giving

David Bouffard

Vice President

Signet Corporate Affairs

Communications

Planning

Relations Responsibility /

SustainabilityGiving

Corporate Social Responsibility at Signet

PillarsPeople Charitable

Giving

Responsible

Sourcing

Environmental

Stewardship

Signet’s Commitment to Responsible Sourcing

A two-pronged approach

For

CompaniesFor

ProductsRJC Certified Members *

Products

RJC membership and RJC certification

reassures Signet of our suppliers

responsible sourcing practices

Compliance with the SRSPs

reassures Signet of the integrity of

our supply chain and the products we sell

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Signet’s Commitment to Responsible Sourcing

• Signet believes that a responsible supply chain is fundamental to the reputation of the jewelry industry and its future.

• Signet has been active in the development of harmonized industry guidance and standards:Organisation for

Economic Co-operation

and Development (OECD)

Dubai Multi

Commodities Centre (DMCC)London Bullion

Market Association (LBMA)

Responsible Jewellery

Council (RJC)

Conflict-Free

Sourcing Initiative (CFSI)

• Conflict-free sourcing has been a part of a broader initiative around responsible sourcing.

• The objective is to ensure all Signet jewelry materials are responsibly sourced as defined by reference to the OECD Due Diligence Guidance (DDG) for Minerals from Conflict-Affected and High Risk Areas.

Signet Responsible Sourcing

Protocol for Diamonds

(D-SRSP)

• Overview

• Summary

• Categories

• Working Towards Compliance

• Annual 3TG and Diamond SRSP Compliance

Reporting Timeline

• SRSPs Development Timeline

Overview: Signet Responsible Sourcing Protocol for

Diamonds (D-SRSP)

• The D-SRSP was developed in a process of collaborative research with

40 diamond suppliers, as well as industry associations, NGOs and

governments.

• The objective of the D-SRSP is to ensure all Signet jewelry materials

are responsibly sourced.

• Based on the application of due diligence by suppliers to identify and

minimize supply chain risks, using the OECD DDG Five Step

Framework* (same as 3TG-SRSPs) covering labor practices, human

rights and responsible sourcing.

• Applies to all diamonds supplied to Signet including loose, rough and

polished diamonds, and diamonds set into finished jewelry.

* www.oecd.org/corporate/mne/GuidanceEdition2.pdf

The D-SRSP establishes 4 categories of diamonds, covering all types of diamond supply:

• Parcels of diamonds supplied by or sourced from identified and verified diamond

producers such as DeBeers, ALROSA, Rio Tinto or Dominion, not individually

tracked but verified to have derived from all or any of these producers.

Category 2

Parcel Tracking

• Individual diamonds supplied by or sourced from identified and verified diamond producers such as DeBeers, ALROSA, Rio Tinto or Dominion.

Category 1

Single Stone

Tracking

tracked but verified to have derived from all or any of these producers.

• This category allows for the mixing of diamonds deriving from a number of different sources, with some percentage of the diamonds deriving from identified and verified sources.

• This category applies to diamonds which derive from a producer country or particular mine, originally sourced from other than DeBeers, ALROSA, Rio Tinto or Dominion.

Tracking

Category 3

Mixed Sources

Category 4

Other Identified &

Verified Sources

How To Work

Towards D-SRSP

Compliance

Annual 3TG and Diamond SRSP Compliance Reporting Timeline

Timeline of SRSP Development

OECD Due Diligence Guidance – Applicable to All Minerals

CSR and Responsible Sourcing

CSR and Responsible Sourcing

The Responsible Jewellery

Council

• Membership Expectation

RJC Provenance Claims and Harmonization with SRSPs

• The Provenance Claim provision in the RJC Code of Practices enables Members that make

Provenance Claims to have these claims audited as part of their RJC Code of Practices

Certification.

• RJC does not require Members to make Provenance Claims so this is voluntary.

• Compliance to Signet’s diamonds and gold SRSPs are an example of a relevant “Provenance

Claim”.

• If a Signet supplier is a certified RJC Member which includes a Provenance Claim that directly • If a Signet supplier is a certified RJC Member which includes a Provenance Claim that directly

references the SRSPs in their RJC Certification, the RJC Certification will suffice for future

Signet audit purposes, for SRSPs and factory/social audits (i.e., no need to do subsequent

Signet audits).

• RJC certification audits are valid for 3 years.

• The cost saving from not having to do the Signet audit(s) will often cover the annual RJC

membership costs.

• We recommend that once compliant with the SRSPs, Signet suppliers add them as Provenance

Claims to RJC Certification – this can be a “bolt-on” to existing certification.

Thank You!Thank You!David A. Bouffard

Signet Vice President

Signet Corporate Affairs

Signet Jewelers Ltd.

davidb@jewels.com

330.668.5369 | 375 Ghent Road

330.665.7944 | Akron, OH 44333

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