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How the Wal-Mart Sustainability Criteria are Developed

 

Wal-Mart JSVN Vision and Principles for Sustainable Sourcing of Jewelry


The vision of the JSVN is to provide Wal-Mart and Sam’s Club customers with affordable, quality products that aim to have a net positive effect on the environment and human health. We plan to achieve this vision by striving to ensure the application of the following principles in our supply chain throughout the life-cycle of our products:


  1. Incorporation of lifecycle analysis into business decisions planning and management plans and to recover material value wherever possible
  2. Continual improvement of health and safety performance
  3. Efficient production and minimization of waste and pollution
  4. Safe disposal and management of waste and hazardous materials
  5. Protection of ecological functioning, ecosystem services and important biodiversity and respect legally designated protected areas
  6. Respect for the rights of individuals, indigenous peoples and communities
  7. Respect for employee rights regarding safe working conditions and terms of employment
  8. Contribution to the sustainable development of communities affected by operations
  9. Transparency of sources and assurance of sustainability performance
  10. Compliance with applicable laws, regulations and treaties at international, national, state and local levels

 

 

Long Term Goal : 100% of gold, silver and diamonds used in the jewelry sold in Wal-mart will be sourced from mines and produced by manufacturers that meet Wal-Mart’s sustainability standards and criteria. We also want to incorporate recycled materials used in the jewelry by working with mines, refineries and manufacturers.

Target : By 2010 achieve 10% traceability of all diamonds, gold and silver in jewelry sold in Wal-Mart from mines, refineries and manufacturers meeting Wal-Mart’s sustainability standards and criteria.

Long Term Goal – Packaging : All jewelry poly-bags to be bio-degradable and convert all pallets and all boxes to recyclable materials.


 

How the Wal-Mart Sustainability Criteria are Developed

 


To help us develop the Wal-Mart criteria for responsible mining we reviewed many existing commitments and continuing initiatives on sustainable mining, including the International Council of Mining and Metal's (ICMM) Sustainable Development Framework, the Initiative for Responsible Mining Assurance's (IRMA) emerging standards for mine site assurance, the 10 Gold Rules put forward by the No Dirty Gold Campaign, the standards championed in the Framework for Responsible Mining, and the International Financial Organization's (IFC) environmental and social performance standards. While we have made all final decisions as to these criteria, over many months, we engaged and sought input from a wide spectrum of experts, some of which included Rio Tinto Ltd., Newmont Mining Corporation, Conservation International, Earthworks, World Wildlife Fund, and Oxfam America. We sought input from these organizations because of their perspective and energy they bring to advancing the sustainable development agenda. In line with their institutional policies, we understand that the valuable participation of these organizations does not imply their endorsement of the Love, Earth product line or sourcing criteria.

 

Wal-Mart’s Initial Environmental and Social Sourcing Criteria for Mining and Metals in Jewelry


Company Criteria: Mines supplying precious metals and gemstones for jewelry sold in Wal-Mart and Sam's Club stores are operated by companies that:


  1. Are committed to incorporate the principles of sustainable development and the respect for human rights into policies and operating practices pursuant to the International Council on Mining and Metals Sustainable Development Framework or an equivalent standard;
  2. Are signatories to and in compliance with the Voluntary Principles on Security and Human Rights;
  3. Are signatory to the Global Compact;
  4. Are committed to supporting the Extractive Industries Transparency Initiative practices;
  5. Are signatory to the World Economic Forum's Partnering Against Corruption Initiative; 
  6. Seek to reduce Greenhouse Gas Emissions and report their emissions annually using a credible reporting protocol (for example The World Resources Institute and World Business Council on Sustainable Development Greenhouse Gas Protocol or the Carbon Disclosure Project);
  7. Annually publish an externally assured environmental and social performance report using the Global Reporting Initiative guidelines and sector supplement, and AA1000 Assurance Framework, or equivalent process.
  8. Adhere to Kimberley Process certification scheme and the World Diamond Council system of warranties where appropriate;

    Mine Criteria : Mines supplying precious metals and gemstones for jewelry sold in Wal-Mart and Sam's Club stores will:

  9. Have in place policies and practices that uphold fundamental human rights and respect cultures, customs and values in dealings with employees including[1]:
    1. Elimination of forced, compulsory or child labor;
    2. Fair remuneration of employees that is in compliance with the local and national laws and consistent with the prevailing local standards in the countries of operation;
    3. Policies and practices designed to eliminate harassment and unfair discrimination;
    4. The freedom of association and the effective recognition of the right to collective bargaining;
    5. Maintain reasonable employee work hours in compliance with local standards and applicable laws;
    6. Provision of appropriate cultural and human rights training and guidance for all relevant staff, including security personnel;
  10. When operating in zones of armed conflict, through initial due diligence and, thereafter, by careful monitoring of risk and in consultation with local communities and other stakeholders as appropriate, should seek to ensure that, through their actions or inaction, they are not benefiting from, supporting, contributing to, nor tacitly permitting human rights abuses or atrocities, either directly or indirectly.
  11. Conduct public consultation and disclosure to achieve the widest possible acceptance and support of communities directly affected by project activities throughout the project's lifecycle from earliest exploration activities, prior to commencement of mining, during mine operations and through to closure;
  12. Engage with communities directly affected by the project on an ongoing basis and in an inclusive and culturally appropriate manner, ensuring that their rights are respected and their interests and development aspirations are considered in major mining decisions and community-related programs; and implement and utilize compensation and a grievance and mediation mechanism where and when  appropriate;
  13. Seek to avoid or at least minimize involuntary resettlement of communities for new operations and expansion of existing operations and where this is unavoidable compensate fully, appropriately and fairly for adverse effects on individuals and communities with the objective of improving or at least to restore the livelihoods, standards of living, and living conditions of displaced people;
  14. Complete an environmental and social impact assessment, including an analysis of mine closure, that follows credible and recognized guidelines for impact assessment (for example the US National Environmental Policy Act (NEPA) and International Association for Impact Assessment (IAIA));
  15. Utilize a recognized environmental management system that explicitly states the company's environmental policy and objectives and includes management plans, as is appropriate, for acid rock drainage, water, cyanide, mercury, waste management, overburden, tailings, and releases (for example, the International Standards Organization 14001 standard);
  16. Prepare an appropriate closure and reclamation plan for the operation that includes a financial guarantee, sureties or provisions, to meet costs of closure and reclamation;
  17. Certification under the International Cyanide Management Code (ICMI) Verification Protocol, where cyanide is used;
  18. Implementation of emerging MACT (Maximum Achievable Control Technology) where by-product mercury is produced, pursuant to the Nevada Administrative Code, for point source air emissions;
  19. Adopt tailings management practices that maintain terrestrial, marine and river ecosystem functioning and services at the landscape scale;
  20. Not operate in World Heritage Sites and sites of critically important biodiversity[2], including Alliance for Zero Extinction sites and protected areas categorized as 1 and 3 under The World Conservation Union (IUCN) system of Protected Area Management Categories [3];
  21. Adopt practices that contribute to the long-term conservation of species and the integrity of biotic communities, ecosystem processes and services;
  22. Compensate within a landscape context for any significant residual adverse impacts on biodiversity, and the direct users of biodiversity, after appropriate avoidance, minimization and reclamation (rehabilitation) measures have been taken;

     

  23. Develop and maintain an Emergency Response Plan, in collaboration with local communities and relevant agencies, pursuant to guidance provided by Awareness and Preparedness for Emergencies at the Local Level (APELL);
  24. Comply with, at a minimum, applicable host country laws and regulations.


[1] Criteria 8 and 9 have been in part guided by Wal-Mart's Stores Inc., Standards for Suppliers, The International Finance Corporation (IFC), Performance Standard 2: Labor and Working Conditions; the International Council of Mining and Metals, Sustainable Development Principle 3; the UN Global Compact; and, a number of international conventions negotiated through the International Labour Organization (ILO) and the United Nations (UN) including:


ILO Convention 87 on Freedom of Association and Protection of the Right to Organize
ILO Convention 98 on the Right to Organize and Collective Bargaining
ILO Convention 29 on Forced Labor
ILO Convention 105 on the Abolition of Forced Labor
ILO Convention 138 on Minimum Age (of Employment)
ILO Convention 182 on the Worst Forms of Child Labor
ILO Convention 100 on Equal Remuneration
ILO Convention 111 on Discrimination (Employment and Occupation)


[2]Sites with habitat required for the survival of critically endangered or endangered species; 4 areas having special significance for endemic or restricted-range species; sites that are critical for the survival of migratory species; areas supporting globally significant concentrations or numbers of individuals of congregatory species; areas with unique assemblages of species or which are associated with key evolutionary processes or provide key ecosystem services; and areas having biodiversity of significant social, economic or cultural importance to local communities

[3] There may be unique situations where the development of a mine can benefit or enhance the conservation and protection of valuable ecosystems. If it can be demonstrated that material benefit from mining will occur – a 'net-positive' outcome - development in these areas may be considered.

Wal-Mart JSVN Goals and Targets