Charles & Colvard, Ltd.
Climate Impact & Sustainability Data (2018, 2019)
Reporting Period: 2018
Environmental Metrics
Total Carbon Emissions:Not disclosed
Scope 1 Emissions:Not disclosed
Scope 2 Emissions:Not disclosed
Scope 3 Emissions:Not disclosed
Renewable Energy Share:Not disclosed
Total Energy Consumption:Not disclosed
Water Consumption:Not disclosed
Waste Generated:Not disclosed
Carbon Intensity:Not disclosed
ESG Focus Areas
- Environmental responsibility
- Ethical sourcing
- Social responsibility
Environmental Achievements
- Increased awareness of eco-friendly jewelry made with the world’s most brilliant gem
Social Achievements
- Products appeal to socially-conscious millennials
- Conflict free and eco-friendly jewelry
Governance Achievements
- Not disclosed
Climate Goals & Targets
Long-term Goals:
- Balancing growth-oriented investments to generate sustainable earnings improvement
Medium-term Goals:
- Targeting the global market opportunity through continued brand building, focused channel expansion and world-class customer service
Short-term Goals:
- Driving organic revenue growth in the U.S. and maintaining attractive margins
- Expanding our gemstone and jewelry offerings to serve a broad range of customers
Environmental Challenges
- The jewelry industry's rigid marketing model and supply chain structure
- Millennials' changing buying behaviors
Mitigation Strategies
- Re-launched Charles & Colvard as a global jewelry brand with a direct-to-consumer e-commerce presence
- Fresh marketing programs, enhanced merchandise, and new sales channels
Supply Chain Management
Supplier Audits: Not disclosed
Responsible Procurement
- Ethically sourced product
Climate-Related Risks & Opportunities
Physical Risks
- Not disclosed
Transition Risks
- Not disclosed
Opportunities
- Not disclosed
Reporting Standards
Frameworks Used: Null
Certifications: Null
Third-party Assurance: Not disclosed
UN Sustainable Development Goals
- Not disclosed
Not disclosed
Sustainable Products & Innovation
- Eco-friendly jewelry made with the world’s most brilliant gem
Awards & Recognition
- Not disclosed
Reporting Period: 2019
Environmental Metrics
ESG Focus Areas
- Environmental responsibility
- Social responsibility
- Ethical sourcing
Environmental Achievements
- Elevated the use of recycled precious metals in more than 95% of all finished jewelry sourced in fiscal year 2019; working toward utilizing only recycled precious metals in production lines.
Social Achievements
- Named the Official Jewelry Sponsor of the North Carolina Courage (NWSL team) in April 2019; provided championship rings to the team.
- Continued to support employee well-being and development.
Governance Achievements
- Shareholders approved the adoption of the Charles & Colvard, Ltd. 2018 Equity Incentive Plan on November 21, 2018.
Climate Goals & Targets
Long-term Goals:
- Expand Charles & Colvard's brand globally.
Medium-term Goals:
- Balance omni-channel sales strategy with regional-specific marketing programs.
Short-term Goals:
- Expand brand awareness through digital advertising and influencer marketing.
Environmental Challenges
- Intense competition in the worldwide jewelry industry, including from mined diamonds, lab-created diamonds, and other moissanite producers.
- Potential quality control challenges.
- Seasonality of the retail jewelry industry.
- Dependence on a limited number of distributor and retail partners.
- Dependence on Cree, Inc. for SiC crystals.
- Risks associated with international operations.
- Potential perception as a competitor by existing wholesale customers.
- Risks related to e-commerce changes and technology.
- Risks related to information technology infrastructure and security breaches.
Mitigation Strategies
- Developing and promoting Charles & Colvard brands (Forever One™, Moissanite by Charles & Colvard®).
- Executing a digital marketing strategy.
- Expanding product selection to meet market demand.
- Growing presence with key retail partners.
- Maintaining a relationship with Cree, Inc. and exploring alternative SiC material sources.
- Expanding international sales reach through marketplaces and CBT.
- Developing a direct-to-consumer presence.
- Implementing security measures to protect IT infrastructure and confidential information.
- Implementing a value line of moissanite (Moissanite by Charles & Colvard®) to compete with lower-grade products.
Supply Chain Management
Responsible Procurement
- Stringent supplier guidelines requiring conflict-free gold and responsibly sourced precious metals.
Climate-Related Risks & Opportunities
Sustainable Products & Innovation
- Moissanite by Charles & Colvard®