In a groundbreaking move, the world’s largest jewelry brand, Pandora, has committed to a sustainable shift by forsaking the traditional mining of precious metals in favor of recycled silver and gold for all its jewelry production.
This significant transition by Pandora extends beyond the company itself, impacting not only the jewelry industry but also contributing to a more sustainable future for the planet. The jewelry sector, known for its heavy reliance on mining, has long been associated with a substantial carbon footprint, with 95% of carbon emissions attributed to the mining and production of metals for every piece of jewelry, according to non-profit organization Pure Earth.
Pandora’s decision to shift to 100% recycled metals from the second half of 2024 is particularly noteworthy, considering the Danish company’s substantial annual consumption of around 340 tonnes of gold. This move is anticipated to mitigate approximately 58,000 tonnes of greenhouse gas emissions annually, equivalent to the electricity consumption of 11,000 homes or the carbon emissions from 6,000 cars worldwide.
CEO Alexander Lacik emphasized the positive impact of recycling on the jewelry industry’s climate footprint, highlighting that precious metals can be recycled indefinitely without compromising quality. This shift aligns with Pandora’s goal to source 100% recycled silver and gold by 2025, surpassing its previous target.
The jewelry brand’s commitment to sustainability doesn’t end with recycled metals; it extends to various aspects of its operations. Pandora, recognized for its sterling-silver charm bracelets, is actively working to establish a transparent supply chain for raw materials—a crucial element in today’s jewelry industry.
Despite less than 20% of the world’s silver supply originating from recycled sources, Pandora navigates potential risks associated with recycled materials by adopting the Responsible Jewellery Council’s (RJC) stringent chain of custody standard. This standard ensures that Pandora’s suppliers exclusively source certified recycled materials, implementing new processes and equipment to guarantee complete segregation.
Pandora, with 32,000 employees globally and 2,500 concept stores, is committed to reducing its greenhouse gas emissions across the value chain by 50% by 2030, with aspirations to become a net-zero company by 2040. This commitment is evident in the company’s broader sustainability strategy, which includes the use of low-carbon materials, such as lab-grown diamonds and eco-friendly packaging.
In 2021, Pandora pledged to use only lab-grown diamonds, aligning with its sustainability goals. These diamonds, boasting a significantly lower carbon footprint than mined counterparts, emit just 5% of the CO2 during growth, cutting, and polishing, all achieved using 100% renewable energy. The lab-grown diamonds are set in 100% recycled silver and gold, contributing to a more environmentally conscious jewelry industry.
Despite lab-grown diamonds constituting only around 10% of all diamond sales, the market is expected to double by 2031, reaching an estimated worth of US$55.5 billion. Pandora’s success in this sustainable shift is evident in its strong financial performance, outperforming the market and raising sales expectations for the coming years.
As Pandora continues to evolve its sustainability practices, CEO Alexander Lacik expresses confidence in the company’s transformation, stating, “We have fundamentally changed how we work, and the organization is much stronger,” following robust growth in 2023 and increased revenue forecasts for 2026.
