Tiffany & Co. Michael Floskis Silver Users Association Fall Conference November 6-7, 2007 Washington, DC
Tiffany & Co. Who We Are • Designer, manufacturer and retailer of fine jewelry • Over 167 jewelry retail stores worldwide • 2006 Revenue $2.65 Billion • 8,900 full time employees
Concerns with mining for the Jewelry Industry • Trade of conflict diamonds • Labor Rights • Environmental issues • Cyanide is used by large mining operations to separate gold and silver from the ore • Large mines dump toxic water • Abandoned mines and waste
Tiffany & Co. View on Sustainability “Tiffany & Co. is committed to obtaining precious metals and gemstones in ways that are socially and environmentally responsible-it is simply the right thing to do, and our customers expect no less” -Michael J. Kowalski, Chairman & CEO, Tiffany & Co.
Tiffany & Co.: Working together with the jewelry industry and non-governmental organizations • Leading role in working closely with: • Producers • Other end users of precious metals • Jewelry industry groups • Interested non-governmental organizations • One of the organizations that established the Framework for Responsible Mining: A Guide to Evolving Standards www.frameworkforresponsiblemining.org
Tiffany & Co.: Stance on Hard Rock Mining • Support reform of the General Mining Law of 1872 • Support legislation to assist in cleaning up abandoned hard rock mines • Believe that mining on our public lands is a privilege and must be carefully measured against alternative use, including recreation and conservation • Tiffany & Co. has publicly-and-actively-opposed inappropriate mine development on environmentally and sensitive lands
Tiffany & Co.: Principled Position on Burmese Gemstones • Most of the finest specimens of rubies are mined in Myanmar (Burma) • US government in 2003 enacted the Burmese Freedom and Democracy Act of 2003 • Technically permissible to import rubies mined in Burma but cut and polished in other countries • Tiffany & Co. is one of the few retailers that respects both the letter and the spirit of the legislation
Tiffany & Co.: Promoting Ethical Business Conduct • A founding member of the Council for Responsible Jewellery Practices http://www.responsiblejewellery.com/index.htm • Founded in 2005 • Other founding members include: • Zales • Signet Group • Rolex, S.A.
Tiffany & Co.: A Focus on Conserving Marine Habitats • Coral has long been used in fine jewelry • Tiffany & Co. since 2003 refuses to use the precious resource coral in our collections
Tiffany & Co. Internal Actions towards Sustainability Phase I: Ensured use of only non-conflict diamonds Tiffany & Co. diamonds primarily come from three geographic regions • Canadian Arctic • Africa • Russia • Created Laurelton Diamonds, a wholly owned subsidiary that provides rough diamonds and manages the worldwide supply chain Phase II: Ensure use of responsibly mined metals
Tiffany & Co. Internal Actions towards Sustainability Ensure the use of precious metal from responsible sources: • The largest portion of the gold and silver contained in Tiffany & Co. jewelry is obtained from a US copper mine which operates in a sustainable and environmentally sound manner • Established a process to support the use and distribution of responsibly mined metals for the manufacturing of Tiffany & Co. products
Tiffany & Co. Views on Mining • New mine development should not occur on lands of high ecological or cultural value • Air and water contamination should be minimized • The principle of informed community participation in mine development should be embraced • Basic human rights should be respected by all parties • Mine operators should provide for appropriate and fiscally sound financial guarantees to cover the costs of cleaning up and closing mines • Mine wastes should not be placed in rivers, streams, lakes or near shore ocean water
Copper Liberators Electrolyte Circulation Filtration Filtration Electrolytic Cells Chlorination Leach Copper Cathode Tiffany & Co.: Responsible Metal Source Mine Process Autoclave Gold Recovery Selenium Recovery Lead Recovery Silver Recovery Lead Carbonate Selenium Powder Gold Bars Silver Bars
Responsibly Mined Silver & Gold Components Responsible Metals: Supply Chain Flow Tiffany & Co. Responsible Mine Component Vendors Internal Manufacturing Finished Good Vendors Finished Goods Finished Goods Tiffany & Co. Distribution Center
Tiffany & Co. Foundation In addition to supporting education and advancement of the arts, The Tiffany & Co. Foundation focuses on several areas of environmental interest • Responsible Mining • Supports the work of a number of nongovernmental organizations dedicated to building a framework for responsible mining that meets industry needs for precious gemstones and metals while minimizing environmental impacts • Coral Reef Conservation • Supports research and community-led work focused on halting the destruction of coral reefs that result from • over-fishing • shore development • effects of global warming • Land Conservation • Supports land conservation initiatives at both the national and the local level • Especially active in supporting efforts to preserve open spaces in urban settings
THANK YOU Speaker: Michael Floskis Director of Finance Tiffany & Co. 300 Maple Ridge Drive Cumberland, RI 02864 (401) 288.0101 Michael.Floskis@Tiffany.com