Sustainability is now a major focus in the international jewelry market, and China's jewelry industry is stepping up to meet the challenge. With ESG (Environmental, Social, Governance) standards becoming critical, leading jewelry companies are making big moves to enhance their sustainability credentials and win over conscious consumers.
Why ESG Matters More Than Ever in Jewelry
Back in 2005, the Responsible Jewellery Council (RJC) was established to promote ethical, social, and environmental practices across the jewelry supply chain. Fast forward to today, and ESG is a top priority for consumers. According to De Beers' 2021 Diamond Insight Report, jewelry ranks third in consumer sensitivity to ESG, only behind food and clothing. Nearly 60% of consumers say they prefer diamonds from ESG-conscious brands—and they’re willing to pay a 15% premium for them!
It’s not just diamonds either. 86% of consumers across 17 countries want to learn more about a company's ESG practices, and for younger generations, the focus on sustainability and ethics is even higher. In 2022, 36% of women and 39% of Gen Z shoppers prioritized brands with strong ethical credentials when buying diamonds.
China's Leading Jewelry Brands Are Setting the Standard
In China, the jewelry sector's ESG efforts are starting to make a difference. Major companies like China National Gold Group and Yuyuan Shares have begun releasing independent ESG reports. China National Gold, a pioneer in China’s gold industry, has disclosed its ESG performance to demonstrate responsible practices in everything from mining to retail.
Yuyuan Shares has implemented a robust ESG assessment system and aims to achieve carbon neutrality for all its holdings by 2050. By linking ESG initiatives to management performance, Yuyuan is actively integrating sustainability across the business, from ethical supply chains to environmental health and safety measures.
Hong Kong Jewelry Companies Lead the Way in Transparency
Hong Kong-listed jewelry companies are ahead of their mainland counterparts in ESG transparency. The Hong Kong Stock Exchange requires ESG disclosures, and brands like Chow Tai Fook, Luk Fook, and Chow Sang Sang provide detailed ESG reports that include energy-saving initiatives, community contributions, and environmental impact.
Chow Tai Fook has also enhanced its sustainable governance by setting up a Sustainability Development Committee and a dedicated working group, integrating ESG into business practices, and even preparing climate-related disclosures as per international frameworks like the Task Force on Climate-related Financial Disclosures (TCFD).
Greener Gold—Jewelry Brands Making a Difference
Global jewelry brands are making bold moves toward sustainability. In 2020, Pandora announced its commitment to switch entirely to recycled gold and silver by 2025, which has 600 times fewer carbon emissions than newly mined gold. Meanwhile, Chopard became the first luxury watch brand to adopt 80% recycled steel across all its stainless steel watch collections, showing that luxury and sustainability can coexist.
Prada's "Eternal Gold" collection, launched in 2022, uses 100% recycled gold and offers full traceability via the Aura Blockchain Consortium. This means consumers can verify the sustainability of every piece, from gold sourcing to production, ensuring that their jewelry is not only beautiful but also responsibly made.
Women Are Transforming the Future of Jewelry
The rise of the "She Economy" is reshaping the jewelry industry in China. With nearly 97% of women leading household purchase decisions, the female consumer market has become a powerhouse. In the first quarter of 2021, women outspent men in luxury jewelry by nearly 7%, making them the primary decision-makers in this market.
De Beers has taken notice, expanding its partnership with UN Women and increasing female representation in leadership roles. However, domestic brands still lag behind in terms of dedicated initiatives for women's empowerment. Yuyuan Shares, for instance, has taken steps to enhance the well-being of female employees with facilities like "Mommy Care Rooms" and targeted healthcare programs, but there's still more work to be done.
A New Era for China's Jewelry Industry
With ESG standards becoming increasingly important, China’s jewelry companies are focusing on building a greener and more ethical industry. From cutting emissions to ensuring responsible sourcing, these initiatives are reshaping the jewelry market—making sure that each gemstone truly shines with integrity.
Could this be the beginning of a new era for jewelry—where beauty meets responsibility?