Hardy Brothers

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Statement of Corporate Responsibility

The Management and Associates of Hardy Brothers Jewellers are aware of the fragility of the beautiful Australian landscape and its ecology. The company is also aware of the potential negative impact non-regulated industrial activity may have not only on the earth’s environment but also on the lives of workers and their families engaged in industry.

The jewellery, timepieces and object d’art marketed by Hardy Brothers are characterised by the beauty of the elements they contain and ingenuity of the crafts employed in their transformation.

We pay tribute to the businesses and the people they employ both in Australia and across the globe, at each stage of the productive process, in the creation of these beautiful products.

Hardy Brothers Jewellers has established policies that reduce the risk of violating environmental and human rights standards.

The specific areas identified are summarised under the following sections:

Maintenance of Environmental Standards in the extraction and processing of precious metals and gems

Gemstones and precious metals are sourced on world markets. The majority of these raw materials are produced by large scale industrial organisations. Gold producers such as Barrick, Gold Corp, Newmont, Newcrest and Diamond Miners, De Beers, Rio Tinto and BHP Billiton are responsible for a large proportion of global output. These corporations warrant in their Public Policy Statements, to engage in environmentally sustainable mining and extraction processes and are regulated by conditions imposed by the States in which they operate and through self regulatory methods such as ISO 14001.,1

Hardy Brothers Jewellers manufactures the majority of the fine jewellery it markets in Australia. When directly procuring precious metals and gems, we require merchants to limit the sourcing of materials to mainstream producers who are able to demonstrate compliance with declared environmental policies.

For example Gold Refiners are required to have adopted the standards set down by the London Bullion Market Association. .2

Where manufactured products are sourced from overseas, suppliers particularly outside of the EEC, are required to confirm that raw materials are obtained from compliant producers.

Hardy Brothers' designers provide the specification from which our external suppliers create the jewellery.

All our overseas producers predominately supply the European and North American markets. Among their customers are retailers who are recognised for designing some of the world’s most beautiful jewellery.

As an economic consequence, our suppliers are required to adopt environmental and social practices that are consistent with the Public Policy of their major customers.

The adoption of Minimum Labour Standards in accord with ILO Conventions and Covenants

The International Labour Organisation (ILO) is a specialised agency reporting to the United Nations. The major goal of the ILO, is "to promote rights at work, encourage decent employment opportunities, enhance social protection and strengthen dialogue on work-related issues". 3

Industrial relations and human rights laws in Australia acknowledge the ratification of ILO. Conventions. The Fair Work Act 2009   4 is the central legislation used to regulate industrial relations in Australia. Hardy Brothers Jewellers Workplace Agreements and general employment contracts comply with that legislation. Australian suppliers to Hardy Brothers are also regulated by ILO compliant Industrial Relations laws.

In relation to overseas suppliers, those that are based in the EEC and Switzerland through their Public Policy Statements warrant their compliance to the relevant industrial relations and human rights laws that exist in their jurisdictions.

Where product is sourced from countries classified as being in "non-high income countries" 5 we ask suppliers to complete a written declaration that requires them to confirm that ILO standards exist in their workplaces.

The elimination of illegal diamonds that have originated in areas of geopolitical conflict

Hardy Brothers Jewellers includes in their diamond purchase contracts requirement for merchants to certify that the gems they supply comply with the Kimberley Process.

The Kimberley Process is a "joint governments, industry and civil society initiative to stem the flow of conflict diamonds – rough diamonds used by rebel movements to finance wars against legitimate governments". 6

Besides the destabilizing effect on fledgling democracies, the extraction of diamonds by criminal organisations funds terrorists activities and violate the human rights of the people caught in a cycle of poverty forcing them to work in illegal mines.

Hardy Brothers Jewellers is diametrically opposed to such activity and supports the Kimberley Process in restricting access to world markets by illegal operators.

The abatement of Greenhouse Gas Emissions in our Retail and Manufacturing operations

Hardy Brothers Jewellers operates a specialised manufacturing facility in Newstead Brisbane. This consists of a fine jewellery section and a Swiss accredited Watch Service facility. Best practices are used to conserve energy and reduce waste. The facility is regulated by the provisions of the Brisbane City Council in relation to waste management and the Queensland State and Federal Governments on a range of environmental issues.

Where heat is required in the production of jewellery, welding equipment that consumes hydrogen and oxygen is utilised. This process produces zero direct carbon emissions.

The greatest source of carbon emissions that occur in the company result from the consumption of electricity in our Retail Stores through the provision of lighting and cooling.

Prior to the introduction of LED lighting, jewellery stores consumed high levels of energy to illuminate merchandise. The old lighting technologies employed also produced high heat loads requiring additional cooling.

Since 2007 Hardy Brothers Jewellers together with other divisions of the Group have embarked on a program of converting all lighting systems to LED. This more efficient technology converts a relatively high proportion of the energy consumed into light and less into heat. As a consequence less energy is consumed to produce light and apply cooling.

The chart below indicates the change in the level of total emissions for Group Companies. All Hardy Brothers outlets now utilise the latest LED technology. The graph below demonstrates that the 2015 Group output of CO2, compared to 2009, will abate by 50% through the continuing conversion to LED lighting systems.

1 https://www.iso.org/obp/ui/#iso:std:iso:14001:ed-2:v1:en
2 http://www.oecd.org/daf/inv/mne/mining.htm
3 http://www.ilo.org/global/about-the-ilo/lang--en/index.htm
4 http://www.comlaw.gov.au/Series/C2009A00028
5 http://data.worldbank.org/about/country-classifications/country-and-lending-groups#High_income
6 http://www.kimberleyprocess.com/

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