The importance of auditing and transparency in the sustainable jewelry supply chain

The jewelry market in Brazil is growing and demands sustainable products. With 50% of gold traded illegally, supply chain auditing becomes crucial. Traceability, blockchain and renewable energy are solutions.

The jewelry market in Brazil is rapidly expanding, with a current turnover estimated at US$3,5 billion. The forecast is that this value will reach US$5,34 billion by 2029. However, with around 50% of the gold sold being of illegal origin, the audit of supply chain became imperative. Among the proposed solutions are the use of traceability technology, blockchain implementation and the adoption of sources of renewable energy.

To ensure the integrity of the supply chain, it is essential to adopt efficient supply logistics. The traceability of the material from origin to the final consumer is essential to ensure compliance and sustainability in the sector. Furthermore, supply chain management needs to be aligned with the best practices and technologies available to minimize environmental impacts and increase transparency at all stages of the process. This way, the industry can move forward in an ethical and sustainable way, meeting growing consumer demands and government regulations.

The heating of the domestic market and exports

A supply chain in Brazil, it not only heats up the domestic market, but also places the country among the 20 largest gold exporters in the world. With this advancement, it is natural that the demands on consumers for more sustainable products. The Brazilian consumer demonstrates growing awareness about sustainability, being more likely to pay larger amounts for ecological or sustainable products.

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Problem of illegal mining and the need for supervision

But how to manage a sustainable supply chain using gold? Data from Instituto Escolhas, released in July last year, reveals that at least 50% of the gold traded in Brazil between 2015 and 2020 was illegal. Illegal mining has also expanded its operations in indigenous territories fivefold. This topic is currently under debate in society and Congress, encouraging the adoption of new rules of metal traceability.

Fragility and governance in the supply chain

The issue demands that companies change their controls over the supply chain and governance. Given the fragility of internal supply logistics, Brazilian manufacturers, increasingly focusing on the international market, must intensify vigilance over the origin of raw materials. Since responsible sourcing From raw materials to fair working conditions, an ethical supply chain seeks to address environmental, social and transparency issues in the jewelry production cycle.

Transparency and responsibility

The lack of transparency in the supply chain where raw materials originating from illegal mining are present means that the jewelry market adopts a non-transparent position. Ethical supply chains in the jewelry industry strengthen the importance of responsible sourcing of materials, involving the traceability of the origins of metals and precious stones to ensure that they are extracted and processed legally.

Environmental impacts and conservation

Responsible sourcing reduces the negative environmental and social impacts associated with mining, promoting sustainable practices that protect natural resources for future generations. By adopting responsible sourcing practices, the jewelry industry can play a crucial role in conservation and environmental management efforts. A transparent supply chain not only meets consumer expectations, but also offers numerous benefits to the industry itself.

Benefits of Ethical Supply Chain

By disclosing information about the origins of materials, production processes and practices, jewelry stores build a structure that serves as a catalyst for continuous improvement, encouraging companies to adopt more sustainable and responsible practices. Supply chain management, by being public, makes companies accountable to an informed and conscious consumer base.

Commitment to the ESG platform

In essence, the importance of maintaining an ethical supply chain in the jewelry industry goes beyond mere compliance; it integrates a commitment to the ESG platform as a whole. There are several ways to build an ethical supply chain within the jewelry industry. One of the most essential is the chain audit, with regular analysis of suppliers.

Technology and good practices

Companies can use the data analysis to measure and monitor your supply chains, identifying areas for improvement and ensuring alignment with ethical standards. This proactive stance allows for continuous optimization and accountability in ethical practices. Furthermore, technology can be an ally, through the incorporation of blockchain for transparency and traceability, use of recycled materials in production and integration of renewable energy in industrial operations.

Importance of image and growth of the sector

Building an ethical supply chain in the jewelry industry goes beyond good ESG practices. The adoption of these practices is crucial for the sector's image and to maintain the growth in sales of high-value-added products, both in the domestic and foreign markets.

Source: Allan Costa

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The importance of auditing and transparency in the sustainable jewelry supply chain

The jewelry market in Brazil is growing and demands sustainable products. With 50% of gold traded illegally, supply chain auditing becomes crucial. Traceability, blockchain and renewable energy are solutions.

The heating of the domestic market and exports

Problem of illegal mining and the need for supervision