Pandora is one of the world’s most popular jewelry brands, known for their contemporary, hand-finished products. But, much less is known about their ethics and sustainability practices. Diamonds are a girl’s best friend, but how environmentally friendly are the companies that make them? As it’s the world’s largest jewelry maker, we had to ask: How ethical is Pandora jewelry?

Pandora is generally very ethical. They are committed to sustainability and use recycled materials within their own facilities to lessen their environmental impact. However, improvements still need to be made to ensure the ethics of their entire supply chain, including worker rights.

In this article, we will walk you through the steps of the Pandora 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 We Assessed the Ethics of Pandora Jewelry

The global jewelry market is expected to increase from about $270 billion in 2022 to over $330 billion by 2026. And Pandora is one of the biggest players in the industry, with an annual revenue of around $3.5 billion. 

Most jewelry is made using a variety of metals that often need to be mined and processed using labor and carbon-intensive processes. To be truly sustainable, a jewelry company needs to ensure that all their materials are sourced responsibly, processed minimally, and recyclable. 

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

Merriam Webster

To understand the ethics of Pandora jewelry, we must assess them across their whole supply chain. This supply chain analysis (VCA) is a method used 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, Pandora is working hard to improve their ethics and sustainability practices. However, there are many different processes and materials that go into the production of jewelry which can all result in environmental damage if not used responsibly. So, let’s dive into each individual stage to determine the areas that Pandora can improve on.

How Ethical Is the Sourcing of Pandora Jewelry

To determine how ethical the sourcing of Pandora 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 Pandora jewelry is ethical.

In this next section, we will break down the ethics of Pandora 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 Pandora Jewelry About Their Whole Supply Chain and Production Process

Pandora appears to be very transparent about their processes. They release a Transparency in Supply Chains Statement every year, which details their actions toward becoming more sustainable. They also screen and monitor all their suppliers.

In this section, we break down the ethics and transparency of Pandora’s supply chain and production process:

• Sourcing raw materials: Pandora works with a small number of direct suppliers for their materials, mostly in and around Thailand. They screen all potential suppliers using a comprehensive risk assessment before committing to working with them. Suppliers are also required to undertake a third-party audit every two years. Furthermore, all the silver and gold they source comes from certified responsible refiners. The company regularly monitors audits of all their suppliers to ensure compliance with their standards. 
• Distribution centers: Pandora distributes their products worldwide through a number of distribution centers, but predominantly from their center in Hamburg, Germany. Pandora has also been public about their commitments to streamlining their distribution process to keep up with growing demand. For example, 80% of their orders are fulfilled using a ‘pick and pass’ technique, whereas small orders of 5 product lines or less use a batch picking method to ensure efficiency. 
• Consumer packaging: Pandora actively promotes their commitment to a fully circular process when it comes to the crafting and packaging of their products. For example, their products and packaging are all free from hazardous chemicals. They also require comprehensive records and test certificates from all of their packaging suppliers as proof of quality management.
• Crafting facilities: Pandora operates two crafting facilities in Bangkok and Lamphun, Thailand, both of which hold the Leadership in Energy and Environmental Design (LEED) Gold building certificate. According to their 2021 report, 89% of their products were crafted at these sites, with 11% of their finished products outsourced. 

In short, Pandora is very transparent about their product sourcing and supply chain. They release a transparency report annually which details all this information.

Where Are Materials for Pandora Jewelry Sourced From

Pandora is a leader in the drive to use more sustainable metals because they use recycled materials and lab-made diamonds.

In this section, we break down the supply process for the main materials used by Pandora; gold, silver, copper, palladium, man-made stones, and mined diamonds. 

• Gold and silver: Pandora is committed to purchasing 100% recycled silver and gold for all of their products by 2025, which accounts for 75% of their metal use. As of 2020, 71% of their gold and silver comes from recycled sources compared to just 15% of the global gold and silver supply. Pandora sources the rest of their gold and silver from refineries that get their materials from responsible mining processes, such as MKS PAMP and Umicore. During the crafting process, Pandora captures the silver and gold ‘dust’ and sends it back to the refineries to be melted down and reused again.
• Copper and palladium: To make their rose gold material, Pandora mixes pure gold with copper and silver. A palladium alloy is used to strengthen their products. However, copper and palladium are not covered by their recycling target. The reason for this, according to the company, is because they only use very small amounts of these materials compared to their use of silver and gold. 
• Man-made stones: In 2022, Pandora launched their lab-made diamonds collection in 269 stores across the US and Canada, as well as online. They are made using a hydrocarbon gas mixture heated to 1,472^oF (800^oC), which causes carbon atoms to bond to tiny man-made diamond seeds and create new layers. This process is performed using 100% renewable energy. As a result, a man-made diamond has just 5% the carbon footprint per carat than that of a mined diamond. However, as of 2023, the company offered 1,200 design varieties, with only 37 being lab-created products. 
• Mined diamonds: Despite their commitment to only selling man-made stones, Pandora still plans to sell their previously sourced mined diamonds because their extraction from the market can cause environmental damage. Their mined diamonds are sourced from KGK Diamonds, the industry’s largest wholesaler. KGK Diamonds works across 18 countries and is RJC certified. They source all their natural materials directly from the mines and have established an integrated supply pipeline to ensure they can track each diamond from sourcing to the finished product. 

In short, Pandora is committed to sourcing ethical materials for all of their products. Even though 29% of their metal does not come from recyclable sources and they still sell mined diamonds, they have made a strong commitment to rectifying these issues.

How Does Pandora Carry Out Their Human Rights Responsibility

Pandora has previously failed to publicize the individual mines they source from, which could indicate negative working conditions. However, since 2020, they have taken steps to ensure that forced and child labor are minimized by using recycled materials.

In this section, we break down the human rights responsibilities and processes used by Pandora to prevent forced and child labor as well as worker safety and appropriate working conditions:

• Forced labor prevention: Pandora’s annual Transparency in Supply Chains Statement details how they work to prevent both forced labor and child labor. For example, their Supplier Code of Conduct includes basic expectations across key areas such as human rights, working hours, and working conditions. However, in 2018, it was found that Pandora was unable to identify the individual diamond mines that supplied them with their raw materials, despite the mandatory requirement of their suppliers to comply with the Kimberley Process. Today, the company uses gold refiners to provide detailed evidence that they have sourced their diamonds responsibly. 
• Child labor prevention: In 2017, Pandora failed to provide any details on slavery and trafficking risks associated with gold mining. This is despite the fact that nearly 1 million children were estimated to be working in gold mines that same year. However, today, the company is committed to using only recycled gold and silver which lowers the risk of child labor significantly. They also run independent audits and visit mines where ‘red flag’ practices are identified. 
• Worker safety: Pandora publishes an annual ethics report that details the non-compliance issues found through their supplier audits. For example, in 2020, Pandora ordered annual third-party audits for 13 of their direct suppliers (30% of their supplier force). The remaining 70% are audited biannually or considered low-risk. This report found that 50% of employee grievances concerned health and safety issues in the workplace. Their Supplier Development team, based in Thailand, is responsible for implementing responsible business practices by working directly with suppliers and supplying them with informal training. 
• Fair labor practices: According to their annual report, Pandora had 27,000 employees who created 94 million pieces of jewelry in 2021. The company allows both employees and employers to express their grievances through an externally-managed whistleblower hotline. In 2020, 11% of grievances concerned compensation and benefits, and 4% concerned work hours. Furthermore, in 2020, they conducted a human rights impact assessment across their whole supply chain to better understand potential risks and impacts to staff. 

In short, while Pandora has failed to provide specific human rights issues within their workforce in the past, they now publish annual reports detailing auditing results, including worker grievances. 

Does Pandora Have a History of Sourcing Conflict Diamonds

There are no specific examples of Pandora using conflict diamonds in the past but their audit trail has not historically been transparent. Since 2021, the company has committed to using man-made diamonds which eliminate the need for conflict sourcing.

“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: Since 2021, 100% of the stones used in Pandora’s new products are man-made, so no conflict sourcing is required. 
• Past problems: Before 2021, Pandora sourced all their diamonds from KGK Diamonds, which is both Best Practices Principles-compliant and Responsible Jewellery Council-certified. Conflict diamonds can be difficult to identify, especially if individual mines can’t be pinpointed. But, KGK Diamonds’s positive reputation has led them to become the preferred buyer of three of the world’s leading diamond miners; one of which created the international Kimberley Process. This was designed to increase transparency and eliminate conflict diamonds from the industry.

In short, Pandora works with the most respected and largest diamond mining companies, one of which helped to create the international Kimberley Process. So, there are no major concerns surrounding the sourcing of conflict diamonds. 

What Is Pandora’s Environmental Impact of Sourcing Their Materials

Pandora mitigates sustainability risks through their Responsible Sourcing Program (RSP), lowering their potential environmental impact. They also use recycled materials in their products rather than sourcing them directly from natural sources.

• Ecosystem disruption: To alleviate the disruption to local ecosystems, Pandora is committed to using 100% recycled gold and silver from 2025. They also now use mainly lab-made diamonds. 
• Land erosion: Since 2020, Pandora has used recycled materials, such as gold and silver, in their jewelry to avoid using natural resources. This is a huge step forward for the company because just 1 mined carat of gold releases 57 kg of carbon and can cause damaging land erosion. The company has also received an ‘A’ rating for performance and transparency on climate change by the Carbon Disclosure Project (CPD). Soil erosion has been linked to climate change because it can be worsened by increased precipitation.
• Toxic chemicals: Pandora products contain no hazardous or toxic chemicals. Furthermore, they have a list of restricted substances that all suppliers must follow. 
• Water usage: Pandora uses fresh water for drinking and processes like plating and tumbling in the jewelry manufacturing process. However, they use recycled water for industrial processes. Furthermore, they strictly monitor their water usage and use automated tap and measurement systems to reduce usage as much as possible. 
• Additional information: Pandora has received an AAA rating (the top rating for sustainability) from 2018–2022 in Morgan Stanley Capital International’s Environmental, Social, and Governance (ESG) Rating. 

In short, Pandora is committed to reducing their potential effects on land erosion and natural resources by controlling water and toxic chemical usage. However, fresh water is still used for certain aspects of the manufacturing process, which reduces the ethics of this stage.

What Is Pandora’s Societal Impact of Sourcing Their Materials

Pandora has a relatively low societal impact of sourcing their materials because they use a lot of recycled and man-made materials. 

• Employment: Pandora is committed to using 100% recycled silver and gold, as well as lab-made diamonds in their products. This is a great step forward, however, nearly 13,000 local people worked in diamond mines across South Africa in 2021 alone. So, if they close, it could have a negative impact on local communities. Conversely, the lab-diamond industry may also force mines to improve their worker standards in order to compete with more ethical industries. 
• Carbon footprint: Pandora is taking steps to ensure they only use lab-made diamonds which have a carbon footprint of 8 kg per carat. This is just 5% of the carbon emissions created by a mined diamond. They are also rolling out supplier training programs that will help to reduce their value chain emissions by 42% by 2030. However, this is much slower progress than their target to be 100% carbon neutral in their own facilities by 2025. 

In short, Pandora is committed to becoming a fully circular business that uses 100% recycled energy and materials. However, more work needs to be done to ensure they reach their targets, especially when it comes to reducing their entire value chain emissions. 

How Ethical Is the Manufacturing of Pandora Jewelry

Pandora is working to become a fully sustainable and ethical business, aligning with the UN Sustainable Development Goals. They also publish detailed reports every year to lay out their processes, including recycling targets and worker grievances.

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 Pandora manufacturing process that affect their ethical standpoint.

Where Is Pandora Jewelry Manufactured

Pandora runs their main crafting centers in Thailand, where they employ over 6,800 people. In 2022, they also announced that they are planning to build a new crafting facility in Vietnam using 100% renewable energy. 

• Worker conditions: Pandora states that all their workers are offered benefit packages including bus transport, free meals, and access to numerous sporting events. However, there is no clear evidence that the company ensures their workers are paid a minimum wage or given financial security in their supply chain. 
• Inclusion and diversity: In 2022, Pandora signed the Women’s Empowerment Principles set up by the UN Global Compact and UN Women. This enforced their commitment to ensure that a third of their leadership roles are headed by women by 2025. However, the company has been scrutinized for not having a comprehensive policy to support diversity and inclusion. 
• Waste production: Hazardous substances and excess packaging can easily run into local waterways, causing environmental pollution. According to their 2022 report, Pandora recycled 99.6% of waste at their own facilities. Moreover, they recycle 100% of their four main waste streams—gypsum, wax, rubber, and glass—by partnering with other organizations.

In short, Pandora has taken significant action to reduce their environmental impact during the manufacturing process. They are also dedicated to improving opportunities for women. However, they lack a robust diversity and inclusion policy.

How Ethical Is the Retailing of Pandora Jewelry

There is no clear evidence of bluewashing in Pandora’s marketing strategies, which are detailed in their Responsible Marketing Standard. They also only sell their products through authorized retailers.

“Bluewashing: Deceptive marketing that overstates a company’s commitment to responsible social practices.”

Wikipedia Does Pandora Have a History of Sourcing Conflict Diamonds

• Authorized retailers: Pandora sells their jewelry through over 6,500 authorized retailers across 100 countries and through their own website. They do not authorize any of their retailers to sell their products through auction sites. However, their products are often transported across continents on carbon-intensive cargo ships. 
• Sustainability governance: Pandora has a 9-member sustainability board that manages and audits operations across supply chain, product, retail, human resources, marketing, and corporate communications, ensuring their compliance. 
• Responsible marketing: According to their website, Pandora’s responsible marketing committee is responsible for new updates and implementations in the retail sector. However, their responsible marketing standards are fairly vague.

In short, Pandora has a multitude of policies and standards that make sure their authorized retailers adhere to strict guidelines. Many of their policies are vague, which can suggest bluewashing, but their actions to become more ethical have proven otherwise.

How Ethical Are the Profit Margins of Pandora Jewelry

Pandora operates at a 25.5% EBIT margin, which is higher than the average of 15.9% for the luxury sector. Their employee wages are low to average, depending on the country, with Thailand workers receiving less than the average wage.

• Employee wages: Pandora offers their workers in the US a base average rate of $15.28 per hour, which coincides with the minimum wage for most states. The average salary paid by Pandora to workers in Thailand is THB 66,000 per month (~$1,780), which is below the national average of THB 96,900 (~$ 2,610).
• Net profit: According to their 2022 financial report, Pandora operated at a 25.5% EBIT margin, which means they generated around a quarter of their revenue before taxes. The average profit margin for a business in the luxury sector is 15.9%. 
• Sustainable investments: In 2023, Pandora announced that they have successfully placed a principal investment of € 500 million (~$530 million) into developing new sustainable processes within their business. However, some experts have accused them of trying to appeal to eco-minded customers while avoiding high bank rates. 

In short, Pandora has above-average profits compared to the rest of the luxury retail sector. Their employees generally get decent wages but this can be improved.

What Is the Typical Life-Cycle Expectancy of Pandora Jewelry

Pandora states that their jewelry can last a long time but are unable to give an exact time frame, as this can depend on how the jewelry is cared for. All Pandora jewelry comes with a warranty for exchanges up to two years after the purchase date. 

• Jewelry care and maintenance: Pandora recommends that all their products be checked by a professional once a year. On top of this, they state that you should clean and polish your jewelry regularly with a soft cloth to maintain its shine. Pandora advertises their Pandora Care Kit as the best way to keep their jewelry in good condition.
• Warranty and repair coverage: Pandora offers a two-year warranty for all their silver and gold jewelry, including those in their Diamonds by Pandora range (lab-grown diamonds). However, parts of wood, glass, leather, and string are only covered for up to one year after purchase.
• Customer reviews: Pandora states that they aim for the highest level of customer service. However, their customer service and product quality have been criticized on review sites, including the life expectancy of the jewelry. 
• Recycling: As of 2021, Pandora has reduced the plastic in their jewelry boxes by 75% and uses recyclable products such as paper from ‘well-managed’ forests. Furthermore, Pandora has made a commitment to only use recycled silver and gold in all their jewelry by 2025. Any waste metal leftover is ground down into dust and reformed into new products.

In short, Pandora offers a warranty on all of their products for up to two years after purchase, depending on the materials used. However, customers claim that this can be a difficult process. Pandora uses recyclable materials, lengthening the life expectancy of their products. 

Has Pandora 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 Pandora Joined That Are Directly Connected to Their Business Organizations

Companies can use their position to improve the lives of vulnerable communities by collaborating with awareness organizations. Pandora has worked with a number of different companies to highlight pressing topics such as breast cancer and climate change. 

These are the organizations that Pandora has collaborated with:

• UNICEF: Since 2019, Pandora has partnered with UNICEF to support the world’s most vulnerable children and promote diversity and inclusion. Profits from limited edition jewelry sold in 100 markets have supported UNICEF programs in the years since. In addition, Pandora works directly with school children in Thailand to improve life skills and opportunities for young girls. Since their partnership began, Pandora has donated over $10 million to UNICEF projects and helped more than 1.2 million vulnerable children around the globe.
• Business for Social Responsibility (BSR): Since 2018, Pandora has been a member of the BSR to improve the sustainability of their processes and management practices. 
• CDP Disclosure Insight Action: This nonprofit organization requires members to provide annual reports that detail their transparency processes, as well as potential environmental impact and climate risks.
• NHS Charities Together: In 2022, Pandora announced their partnership with NHS Charities Together, representing and supporting NHS charities in the UK. For every ‘hero charm’ sold, Pandora donated 100% of the profits to the charity. This collaboration followed a donation of 10,000 medical masks to Danish hospitals and a $50,000 donation to the American Nurses Association during the COVID-19 pandemic. However, this was only a two-month contract. 
• Breast Cancer Research Foundation: During October (breast cancer awareness month), Pandora sells unique breast cancer awareness charms and donates 50% of all profits to the Breast Cancer Research Foundation. However, this program exclusively runs in the US only.
• i=Change: The partnership, launched in 2017, allows Pandora customers to make online donations of $1 per transaction to selected Australian charities that focus on women’s health and empowerment. 

In short, Pandora has partnered with a variety of charities, showcasing their commitment to raising awareness of current issues. They are also members of worldwide sustainability organizations to ensure they constantly stay up to date with sustainability regulations and innovations.

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

Donations to charities and socially responsible organizations are a great way for companies to show their support. However, while these are nice additions, they don’t directly improve the overall ethics of a company because there is generally no further engagement or commitment involved.

These are the organizations that Pandora has donated to:

• Stonewall: In 2022, Pandora confirmed a donation of $10,000 to the LGBTQ+ charity Stonewall, to support their inclusivity in sport campaign.
• Capital Girls League (CGL): In 2022, Pandora sponsored CGL, the largest girl’s football club in London, UK, to provide over 20 teams with essential equipment such as new kits and transport.
• The Royal Marsden Cancer Charity: In 2015, a young boy named Lewis was diagnosed with stage 4 Burkitt’s lymphoma. His family and friends managed to raise £50,000 to say thank you for his care at the Oak Center for Children and Young People. This amount was doubled by Pandora, bringing the total to £100,000

In short, Pandora has consistently shown their commitment to financially supporting charities across the UK. However, there is less evidence of Pandora broadening their reach to other countries. 

Final Thoughts

Pandora is one of the leading jewelry brands worldwide. They are also committed to becoming a fully circular and sustainable business by using recycled products and creating man-made diamonds. While they show commitment to inclusion and diversity through their charitable donations, they could potentially improve their own policies to make them more concise. This will further protect their employees and reduce the number of grievances made.

Overall, Pandora is leading the way for a more sustainable jewelry industry, which is a commitment that has been backed up by their actions in recent years.

Stay impactful,

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