How Ethical Is Chanel Jewelry? A Supply Chain Analysis

How Ethical Is Chanel Jewelry? A Supply Chain Analysis

By
Carla Shaik

Read Time:18 Minutes

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Ever since their founding in 1910, French luxury brand Chanel has continued to embrace the fashion flair of founder Gabrielle “Coco” Chanel. The brand is known for their exquisite perfumes and expertly crafted jewelry using their signature alloy—beige gold. However, much less is known about their ethics and sustainability practices. So, we had to ask: How ethical is Chanel jewelry? 

Chanel is fairly ethical overall. However, a historic lack of transparency may suggest conflict diamond sourcing and bluewashing. In recent years, the company has started to invest in sustainable practices as well as philanthropy to improve their overall impact and reduce their carbon emissions. 

In this article, we will walk you through the steps of the Chanel supply chain, from sourcing materials and the manufacturing process to retailing and recycling. We will analyze each process and determine the ethics of each stage so that you can make informed choices when you buy your next piece of precious jewelry.

Here’s How Assessed the Ethics of Chanel Jewelry

The global jewelry market is expected to increase from about $270 billion in 2022 to over $330 billion by 2026. And Chanel is one of the biggest and most recognizable players in the industry with an annual revenue of more than $17 billion through over 600 boutiques worldwide as well as online—a number that continues to rise year on year.

Ethics: the discipline dealing with what is good and bad and with moral duty and obligation”

Merriam Webster

To understand the ethics of Chanel jewelry, we must assess the ethics across their whole supply chain. This supply chain analysis (VCA) is a method to evaluate each stage’s ethics; from sourcing the raw materials from their suppliers to delivering the final product to you as a customer.

The supply chain stages of Chanel jewelryEach stage’s ethics
Sourcing of Chanel jewelrySupply chain transparency: Historically, Chanel has not been very transparent about the processes used across their supply chain. However, in recent years, they have published statements detailing their commitment to sustainable sourcing and the respectful treatment of employees. 
Sourcing location(s): Chanel has not historically been transparent about their material sourcing or the mines they use. The company has over 400 suppliers around the world, of which around 30% are direct suppliers providing gold, diamonds, and other precious stones.
Human rights: Chanel relies heavily on their certification by their link to the Responsible Jewelry Council and their Modern Slavery Act Statement to showcase their commitment to human rights. However, they have also launched a dedicated department to ensure compliance by all their suppliers and partners.
Conflict diamonds: Chanel was first launched in 1910 when the issue surrounding conflict diamonds was relatively unknown. So, it’s possible that blood diamond sourcing occurred in the company’s early days. Today, Chanel relies heavily on the Kimberley Process to avoid using conflict diamonds. 
Environmental impact: Chanel states that they are committed to restoring nature, preventing climate change, and investing in a circular economy. They have a set goal to reach net-zero greenhouse gas emissions across their value chain by 2040.
Societal impact: Chanel runs numerous initiatives to support their growing workforce and assist charitable causes that benefit both local communities and the environment.
Manufacturing of Chanel jewelryManufacturing location(s): Chanel operates over 400 boutiques around the world, with more than 25,000 employees. They are currently working to become a circular business using 100% renewable energy across their operations. 
Transparency vs marketing: Chanel has made a number of commitments to become a fully sustainable and ethical business. Since 2020, they have published annual sustainability reports to lay out their processes and achievements.
Retailing of Chanel jewelryUnethical marketing messages: Chanel is one of the most famous luxury brands in the world. While there is no specific evidence of bluewashing, Chanel has only scored a C rating on the Impakter Index, mainly due to a lack of transparency in their practices. 
Operational margins: Since their founding, Chanel has catered to the fashion requirements and wants of upper-class customers who value indulgence. So, their items have always been highly-priced. Today, Chanel runs an operating profit of 33.5%, which is significantly higher than the average of 15.9% for the luxury sector.
Life-cycle duration: Chanel jewelry can last a long time if cared for properly. All Chanel jewelry is made from delicate materials which can easily be damaged by heat, impact, and chemicals. The company offers numerous maintenance services for bought jewelry including stone replacement, resizing, and pearl restringing at an additional cost. 

As we can see from the chart above, Chanel has not historically been very transparent with their practices. However, in recent years, they have made a shift toward showcasing their commitment to sustainability and building a circular economy. 

How Ethical Is the Sourcing of Chanel Jewelry

To determine how ethical the sourcing of Chanel jewelry is, we need to dig into how their products are mined, as well as how transparent they are about their processes. Does the company take steps to ensure miners are treated with respect? Do they only mine materials from sustainable sources? These are some of the things we need to know in order to determine if the sourcing of Chanel jewelry is ethical.

In this next section, we will break down the ethics of Chanel into their transparency, material sourcing, and human rights responsibilities. Then, you can make informed choices to ensure that you are only buying your jewelry from the most sustainable companies. 

How Transparent Is Chanel Jewelry About Their Whole Supply Chain

Historically, Chanel has not been very transparent with the processes used across their supply chain. However, in recent years, they have published statements detailing their commitment to sustainable sourcing and the treatment of employees. 

  • Sustainability: Chanel only published their first-ever report on their environmental efforts in 2018 and banned the use of exotic skins in the same year. This suggests that in previous years, environmental sustainability was not a top priority for the company. However, they have published annual Climate Performance Updates since 2020 to showcase their commitment to sustainability and Paris Agreement guidelines.
  • Sourcing raw materials: Chanel has historically been very private about their practices, including how they source their raw materials. However, in response to the need for greater transparency among stakeholders and the public, the company released a Report to Society in 2018. In the report, they state that all their materials are sourced from “regions with environmental and social challenges” but that they are committed to addressing these challenges in line with the Sustainable Development Goals (SDG) through traceability, audits, and remediation. 
  • Employee rights: Chanel states that they are fully committed to conducting their business in line with all applicable labor laws of every location in which they do business. Their standards are detailed in their Modern Slavery Statement which was finalized in 2019. They state that where audits have raised concerns that a third party is not complying with applicable laws related to forced labor or health & safety, they have ceased business with them. However, their Modern Slavery Statement is fairly standard and generalized with no specific details. 

In short, Chanel has not historically been transparent about their practices. They have become more transparent since 2018, although their statements are fairly generalized, potentially creating ‘loopholes’ for unsustainable practices. 

Where Are Materials for Chanel Jewelry Sourced From

Chanel has not historically been transparent about their material sourcing or the mines they use. The company has over 400 suppliers around the world, of which around 30% are direct suppliers providing gold, diamonds, and other precious stones.

In short, it’s very difficult to determine where Chanel sources their materials from. However, the brand states that they only source from companies that follow the Kimberley Process. They have also committed to using recycled gold. 

How Does Chanel Carry Out Their Human Rights Responsibility

Chanel relies heavily on their link to the Responsible Jewelry Council and their Modern Slavery Act Statement to showcase their commitment to human rights. However, they have also launched a dedicated department to ensure compliance by all their suppliers and partners.

In short, Chanel sets out all their commitments to human rights in their Modern Slavery Act Statement. While this is a good step for the company, it is quite generalized and no specific details of worker grievances are detailed. 

Does Chanel Have a History of Sourcing Conflict Diamonds

Chanel was first launched in 1910 when the issue surrounding conflict diamonds was relatively unknown. So, it’s possible that blood diamond sourcing occurred in the company’s early days. Today, Chanel relies heavily on the Kimberley Process to avoid using conflict diamonds. 

Conflict diamonds: diamonds that originate from areas controlled by forces or factions opposed to legitimate and internationally recognized governments, and are used to fund military action in opposition to those governments

United Nations

  • Current situation: Chanel states that they comply with the Kimberley Process and the World Diamond Council’s “Guarantee System” to eliminate conflict diamonds from their supply chains. However, there has been controversy, particularly around the Kimberley Process, due to its lack of a comprehensive tracking system for individual diamonds. So, it is difficult to determine if Chanel uses conflict diamonds intentionally or unintentionally. 
  • Past problems: In the 1990s, it’s estimated that around 20% of the Earth’s diamonds were linked to conflict and blood diamonds. Chanel has historically not been very transparent about their processes so it is possible they have used conflict diamonds in the past, though this can’t be verified. It is also unclear whether Chanel has sourced from areas known for their blood diamond issues, such as Sierra Leone

In short, it’s unclear whether Chanel has historically sourced blood diamonds. However, due to the age of the company, it’s likely that some conflict sourcing has taken place.

What Is Chanel’s Environmental Impact of Sourcing Their Materials

Chanel states that they are committed to restoring nature, preventing climate change, and investing in a circular economy. They have a set goal to reach net-zero greenhouse gas emissions across their value chain by 2040

In short, Chanel is working toward becoming a more sustainable business through collaborations and by utilizing science-based targets. However, there is still a lot of progress to be made, particularly in terms of water usage and reversing damage to the environment.

What Is Chanel’s Societal Impact of Sourcing Their Materials

Chanel runs numerous initiatives to support their growing workforce and assist charitable causes that benefit both local communities and the environment.

In short, Chanel offers their employees a number of benefits and collaborates with charitable organizations to ensure support for underrepresented communities, as well as the natural environment. 

How Ethical Is the Manufacturing of Chanel Jewelry

Chanel has made a number of commitments to become a fully sustainable and ethical business. Since 2020, they have published annual sustainability reports to lay out their processes and achievements.

The manufacturing of jewelry involves a wide variety of processes that can impact both the environment and employees. In this section, we break down all the factors in the Chanel manufacturing process that affect their ethical standpoint.

Where Is Chanel Jewelry Manufactured

Chanel operates over 400 boutiques around the world, with more than 25,000 employees. They are currently working to become a circular business using 100% renewable energy across their operations. 

  • Manufacturing facilities: Chanel manufactures their fine jewelry and watches in Italy, Spain, and Paris. Their Haute Couture and high jewelry pieces are made exclusively in Paris. They only work with skilled craftsmen in their workshops to maintain their high standards, particularly as many of their costume jewelry pieces involve the use of leather, fabrics, and other components. For example, in 2015, their jewelry design studio in Paris consisted of a team of 6 people working with 25 skilled artisans
  • Sustainable materials: Chanel doesn’t appear to specifically use sustainable materials across their jewelry ranges. Instead, they invest in regeneration programs and companies that are working to find sustainable alternatives. For example, they invest in Sulapac, a Finnish company that is creating biodegradable and micro-plastic free materials from wood chips and natural binders. They also released their first-ever refillable beauty range in 2022, made from over 90% recycled plastic. 
  • Carbon footprint: Chanel has made a commitment to becoming a net-zero company across their value chain by 2040. In 2022, their carbon footprint was over 1 million tonnes of CO2e, with 20% of this coming from the transportation of materials.

In short, Chanel is committed to only using skilled craftsmen to manufacture their products, keeping the traditional trades alive in the modern age. However, despite their commitment to reduce carbon emissions, there is more that can be done to improve the sustainability of their manufacturing processes. 

How Ethical Is the Retailing of Chanel Jewelry

Chanel is one of the most famous luxury brands in the world. While there is no specific evidence of bluewashing, Chanel has only scored a C rating on the Impakter Index, mainly due to a lack of transparency in their practices. 

  • Social media: Today, Chanel is known as one of the most influential luxury brands online, with more than 40.8 million followers on Instagram and Twitter alone. The company often uses social media and celebrity influencers to create the right type of content for their brand in order to reach younger audiences. Another way the brand furthers their presence on social media is to create content that makes it appear aspirational rather than accessible. They particularly focus on video campaigns posted on YouTube, which have proven to be very popular. For example, their “The One That I Want” feature film starring Giselle Bundchen has amassed over 18 million views
  • Marketing strategy: Chanel has successfully positioned themselves as a symbol of luxury and elegance through their marketing strategy. For example, the iconic interlocking ‘C’ logo has become synonymous with high-end fashion, particularly when it is displayed on their iconic quilted handbags. However, their marketing campaigns have not run without controversy. For example, in 2018, their ad campaign starring teen model Kaia Gerber was blasted for being too provocative.
  • Role model: The life story of Coco Chanel is filled with success and controversy. Despite her incredible contributions to the fashion world, Coco Chanel had strong ties to the Nazis, being both an informer and sympathizer. Another controversy with the Chanel brand as a whole is the issue of alienation. For example, in 2024, former Real Housewives of New York star Bethenny Frankel shared a video to Instagram complaining that she was refused entry into a Chanel store in Chicago because she didn’t have a premade appointment and was wearing basic attire. 

In short, there is no denying that Chanel has proven to be a successful marketer, solidifying themselves as a high-end brand. However, their campaigns and ethos have come under fire in recent years for being highly controversial. 

How Ethical Are the Profit Margins of Chanel Jewelry

Since their founding, Chanel has catered to the fashion requirements and wants of upper-class customers who value indulgence. So, their items have always been highly-priced. Today, Chanel runs an operating profit of 33.5%, which is significantly higher than the average of 15.9% for the luxury sector.

In short, Chanel has consistently reported increased profits since 2018. However, they also pay their employees fairly well and invest in sustainability projects to offset their carbon emissions. 

What Is the Typical Life-Cycle Expectancy of Chanel Jewelry

Chanel jewelry can last a long time if cared for properly. All Chanel jewelry is made from delicate materials which can easily be damaged by heat, impact, and chemicals. The company offers numerous maintenance services for bought jewelry including stone replacement, resizing, and pearl restringing at an additional cost. 

  • Care and maintenance: Chanel advises customers to handle their jewelry with care to preserve their beauty. For example, they recommend avoiding contact with heat and chemicals as well as advising that you store your jewelry individually in a case or pouch to prevent scratches. Only authentic Chanel items are eligible for repairs at one of their boutiques. 
  • Guarantees and warranties: Chanel offers a 14-day exchange policy for all items as long as a valid return reason is given, it comes in its original packaging, and it is accompanied by the original receipt. If no specific exchange is desired then Chanel offers a gift card for the amount. Each fine jewelry piece from Chanel is subject to the legal warranties currently in force.
  • Customer reviews: Chanel states that they always aim for the highest level of product quality and that their sales advisors are always on hand to answer any queries. However, they have been criticized on customer review sites for poor customer service and the rudeness of staff when it comes to advice, deliveries, and returns.

In short, Chanel states that their high-quality items can last a long time if properly cared for and maintained. However, they only offer minimal warranties and their customer service has been criticized across all departments. 

Has Chanel Joined Any Organizations to Showcase Their Social Responsibility

Now, more than ever, it’s important for companies to show awareness of their impact and their commitment to social and environmental responsibility. By joining specific organizations, companies can boost worker morale and give back to the community. Studies have shown that 87% of Americans are more likely to buy from a company that advocates for issues they care about.

Which Organizations Has Chanel Joined That Are Directly Connected to Their Business Organizations

Chanel has organized long-term partnerships with numerous organizations in recent years, particularly focused on culture and sustainability. 

In short, Chanel has shown a clear commitment to sustainability and creating a circular economy through their partnerships. However, they could do more to showcase their commitment to conservation and supporting vulnerable communities. 

Which Organizations Has Chanel Joined Where They ‘Only’ Contribute Money

Prior to 2018, Chanel was very secretive about their practices and operations. But, in recent years, the company has donated to many organizations to support humanitarian aid efforts and promote gender equality. However, while these are nice additions, they don’t directly improve the overall ethics of a company because there is no lasting commitment. 

In short, Chanel has donated to multiple charities to showcase their commitment to philanthropy, with their biggest focus being female empowerment. 

Final Thoughts

Since 1910, Chanel has remained a leader in the crafting of luxury jewelry and other iconic items. However, questions remain about their mining practices and marketing strategies. This has been exacerbated due to the company’s reluctance to be transparent in their practices. To improve further, Chanel should focus on bettering their customer service and transparency with the public rather than relying on their iconic status. 

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