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.

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.

• Diamonds: Chanel states that their diamonds are sourced from mines that follow the Kimberley Process. They also state that they conduct audits on all their suppliers, however, they don’t publicize how often these are performed or the results. They do provide diamond certificates from GIA or HRD for all center stones larger than 0.25 carats. Their Fine Jewelry collection includes real diamonds, however, many of their other collections often use rhinestones or crystals instead.
• Gold, silver, and other metals: Gold is mined in around 80 countries, with approximately 3,200 tons produced every year. Chanel sources many of their materials from mines. However, as a commitment to sustainability, they increased their share of recycled gold sourcing to 87% in 2023. All Chanel Fine Jewelry pieces are made of gold or platinum.
• Other materials: Since 2008, Chanel bags, buckles, and other accessories have been made with a gold-tone finish that isn’t actually real gold. However, items made before this year may feature genuine 24-carat gold. 

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.

• Forced labor prevention: Chanel is certified by the Responsible Jewelry Council (RJC) and complies with the ethical principles of the RJC and the Kimberley Process when it comes to the prevention of slavery. However, the Kimberley Process has been repeatedly criticized for its narrow definition of conflict diamonds. Still, it has been hailed as a small step in the right direction to tackle forced labor and conflict associated with diamond mining. 
• Child labor prevention: Chanel details how they work to prevent child labor in their Modern Slavery Act Statement. As part of their procurement process, the company’s Legal and Business Ethics department regularly reviews all contracts with suppliers to ensure they comply with relevant laws and regulations, including those surrounding child labor, working hours, health and safety, and wages. In addition, their dedicated Responsible Supplier Program team participates in training on topics such as child labor in supply chains and country-specific risks. 
• Worker Grievances: Chanel employees are encouraged to raise any concerns to their manager. The company also provides the Chanel Ethics and Compliance Helpline to allow all employees the opportunity to report concerns and a dedicated employee grievance webpage available in 20 languages. Furthermore, Chanel has an ongoing partnership with the Fair Wage Network. However, despite this, the company has been criticized for a lack of evidence regarding their reports on safety-related incidents. 

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. 

• Ecosystem disruption: In 2023, Chanel incorporated updated guidelines into their nature assessments as outlined by the Science Based Targets Network. They expanded their nature assessments to include soil health, as well as target setting for water and land at company, divisional, and regional levels. Moreover, the company is a lead investor for the Landscape Resilience Fund (LRF), established by the company South Pole, and the Worldwide Fund for Nature. 
• Land erosion: Mining can cause irreversible damage to the environment. As Chanel is one of the largest jewelry companies mining diamonds and other materials, their land erosion impact is likely to be fairly high. Chanel received an A- rating for performance and transparency on climate change by the Carbon Disclosure Project (CPD) in 2022. However, no rating was given in 2021 or 2023. Soil erosion has been linked to climate change because it can be worsened by increased precipitation.
• Toxic chemicals: Gold mining has come under scrutiny from environmentalists because the process releases cyanide. Chanel received a ‘Not Good Enough’ rating from Good On You in 2022 due to their lack of commitment to reduce textile waste, eliminate hazardous chemicals, and lower their water consumption. 
• Water and electricity usage: Chanel is working toward more efficient electricity usage to lessen their environmental impact. For example, by the end of 2023, they achieved 98% renewable electricity in their own operations, with over 30 sites now generating their own renewable electricity. There is no available information regarding their water usage.
• Greenhouse gas emissions: In 2020, Chanel formalized their commitment to tackle the climate crisis with their climate action plan, CHANEL Mission 1.5 ͦ, which includes science-based targets to reduce their carbon footprint. Their initial goal is to reduce their emission by 50% by 2030 from a 2021 baseline to achieve net zero emissions 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.

• Employees: Chanel employs over 25,000 workers across 6 continents including Africa, Europe, and Asia. They protect the first 100 days of all employee contracts to create a sense of security and offer a comprehensive Parental Leave program that supports all new parents regardless of gender or sexual orientation. In fact, in 2018, Chanel was one of the first luxury companies to offer a minimum of 14 weeks at full pay for all new parents worldwide. In addition, they ensure all employees are rewarded fairly through their Performance@CHANEL initiative.
• Local communities: Chanel is an investor and trustee for the Landscape Resilience Fund which focuses on enabling the most vulnerable people in rural communities to adapt to climate change through financing, forestry development, and sustainable agricultural practices.
• Female empowerment: Chanel has run Fondation Chanel since 2011 to improve the career prospects of women and girls around the world. They achieve this by implementing global strategies into community-led projects, including Africa, Latin America, and Asia. For example, in Japan, they are working with Women’s Eye to lobby for the inclusion of women in decision-making at all levels through leadership development activities. They have also helped to create an online social education tool to help women from rural areas become community leaders. 
• Nature restoration: Chanel has invested in the Livelihoods Carbon Fund (LCF) with the aim of sourcing effective carbon offsets by investing in community-based solutions for the restoration of natural ecosystems and regenerative agriculture. They also launched a 6-year partnership with École Normale Supérieure (ENS) to better understand the link between climate change and the carbon cycle in oceans. 

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.

• Employee wages: Chanel salaries range from $50,000 for a sales advisor to $230,000 for a Director of Sales, meaning the average salary given by the company is around $128,000 in the US, which is significantly higher than the US average of $77,643. In Singapore, the average monthly salary for a sales associate is $3,557 which is lower than the average national monthly salary of $5,783. 
• Profits: Chanel only released their first annual financial statements to the public in 2018, with Chanel CFO Philippe Blondiaux stating “We realized that our culture of discretion no longer served us. Instead of having others report about us, we’ve decided to put the facts on the table about who we are.” In 2023, revenue increased by 15.8%, with an operating profit of $6.4 billion. This marks three years of exceptional growth for the industry. 
• Sustainable investments: Between 2019 and 2024, Chanel invested more than $55 million into projects that aim to protect the natural world. These investments have enabled the protection and restoration of 9,000 km² of land and, according to the company, fully offset the emissions of their operations and value chain. For example, in Sumatra Merang, Indonesia, they are helping to restore 22,000 hectares of damaged peatland forest and reducing emissions of CO₂ by 400,000 tons a year. 

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. 

• University of Cambridge: Since 2021, Chanel and the University of Cambridge have collaborated to advance sustainability and education, as well as inspire students on their path to sustainability leadership. For example, Chanel has sponsored students from underrepresented backgrounds to join the Cambridge Institute for Sustainability Leadership (CISL) Masters course to help them unlock new opportunities. Furthermore, the collaboration has allowed nearly 500 leaders across Chanel to be upskilled on topics such as biodiversity and climate change. 
• Culture Fund: Chanel has established long-term partnerships with leading cultural institutions to create new programs that support innovation in creative and cultural thinking. For example, their collaboration with the Leeum Museum of Art in Seoul sees them working with international artists, scientists, and philosophers to raise awareness of climate change.
• Centre Scientifique de Monaco (CSM): Chanel has developed a scientific partnership with the Centre Scientifique de Monaco to study the biology of Mediterranean red coral to improve conservation efforts. 
• Ellen MacArthur Foundation: Chanel has worked closely with the Ellen MacArthur Foundation since 2022 to support the development of their circular economy. To mark the start of the partnership, the foundation helped to design Chanel’s Circular Economy Hackathon in Paris, bringing together over 200 employees and experts to raise awareness about the circular economy and explore how Chanel can support the transition from linear to circular.

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. 

• Fondation Chanel: Since 2011, Chanel has supported over 230 charitable organizations through their philanthropic arm, Fondation Chanel, to help women and girls shape their own destinies. For example, they have increased the capacity of the global partnership EM2030 to conduct vital research and hold governments to account when it comes to gender equality and supporting women and girls.
• Lebanese charities: In 2020, Chanel donated $700,000 of financial support to assist rebuilding efforts in the Arab nation after a deadly explosion that occurred in Beirut killed over 150 people and injured thousands more. 

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. 

Stay impactful,

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