Responsible Supplier Programme

Acknowledging that the Code of Conduct does not in itself guarantee the implementation of responsible business practices we have developed a comprehensive Responsible Supplier Programme.

We aim to work with suppliers that our commitment to sustainability, and in 2019, Pandora took steps to better align our responsible sourcing programme with our sustainability ambitions. We take a category-specific approach to responsible sourcing in keeping with our commitment to circularity. This means that we seek to define specific criteria for each of our product and material categories based on a common set of standards codified in our supplier code of conduct and our responsible sourcing policy.

Our approach seeks to continuously improve our performance around three objectives: responsibility, traceability and transparency.

Responsibility

We will improve the social and environmental footprints of our supply chain, primarily by choosing suppliers that comply with category-specific internationally recognised standards. For instance, in 2019 all our metal refiners were certified according to either the LBMA or the RJC Chain of Custody standards.

Traceability

We will improve our ability to trace the origin of our raw materials, including by ensuring that raw materials are conflict- free. In doing so, we are informed by the OECD Guidelines for Due Diligence Guidance for Responsible Business Conduct.

Transparency

We will improve our disclosure of key suppliers and the structure of our supply chains. Since 2018, we have been disclosing our suppliers of silver grains, gold grains and diamonds, and we will extend this to other primary raw materials with due respect for Pandora's and our business partners' need for confidentiality.

The programme instructs our sourcing and purchasing departments to adopt a four-step approach working with our suppliers to ensure compliance with Pandora’s Code of Conduct. All new suppliers are assessed by an independent third party or hold active certifications from internationally recognised certification standards. All existing suppliers perform a biannual third-party assessment or confirm their active certification to verify compliance with our standards. Suppliers are audited annually if they are required to comply with materials traceability requirements. In 2019, 99% of our total sourcing value was audited by third-party auditors.