Climate Change Data

Environmental Metrics

ESG Focus Areas

• Human Rights
• Labor Rights
• Environmental Impact
• Business Ethics
• Working Conditions
• Supply Chain Responsibility

Environmental Achievements

• Reduced workplace accidents (0.19% in 2009 to 0.25% in 2010, lower than the Danish manufacturing industry average)
• Implemented waste categorization and management system in Thailand

Social Achievements

• Joined the UN Global Compact and Responsible Jewellery Council
• Maintained low employee turnover (4.1% in 2010)
• Launched a financial education program for employees in Thailand
• Raised over USD 2 million for breast cancer research through the Pink Ribbon Campaign
• Supported community projects in Thailand and Denmark

Governance Achievements

• Established a global CSR Steering Committee
• Developed a Suppliers’ Code of Conduct
• Developed a Global Business Ethics Policy and whistleblower function
• Adopted corporate governance principles aligned with Danish Committee on Corporate Governance recommendations

Climate Goals & Targets

Environmental Challenges

• Overtime in Thailand due to rapid growth
• Difficulty in fully distinguishing water and electricity consumption in manufacturing from construction
• Non-compliances found in initial supplier audits

Mitigation Strategies

• Planned opening of a fifth facility in Bangkok to reduce overtime
• Intention to report on water and energy consumption from 2011
• Developed Corrective Action Plans (CAPs) with suppliers to address non-compliances
• Engaged a global leader in CSR auditing for thorough and unbiased audits

Supply Chain Management

Supplier Audits: Two audits completed by April 2011, eight more scheduled

Responsible Procurement

• Suppliers’ Code of Conduct
• Kimberley Process Certification Scheme compliance

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: UN Global Compact, Responsible Jewellery Council (RJC) Code of Practices

Certifications: ISO 9001

Environmental Metrics

ESG Focus Areas

• Human Rights
• Labor Rights
• Environmental Impact
• Business Ethics
• Supply Chain Responsibility
• Workplace Safety

Environmental Achievements

• Reduced workplace accidents from nine in 2010 to five in 2011; reduced lost time due to accidents from 47 man-days to 37 man-days; reduced incidents requiring medical treatment from 64 to 27.

Social Achievements

• Developed and tested a comprehensive CSR Supplier Programme; trained more than 50 supplier representatives on CSR risks and PANDORA's expectations; achieved a staff turnover rate of 4.4% in Thailand (significantly lower than the national average); implemented a financial literacy program for employees; launched Radio PANDORA for employee communication; supported local communities affected by Bangkok flooding.

Governance Achievements

• Established a global CSR Steering Committee; developed and implemented a Business Ethics Policy with a zero-tolerance approach to bribery and corruption; conducted business ethics risk assessment and training for 100 staff members; joined the Responsible Jewellery Council (RJC) and United Nations Global Compact.

Climate Goals & Targets

Environmental Challenges

• Sourcing of precious metals, gemstones, and other materials; ensuring responsible business practices throughout the jewellery value chain; managing the environmental impact of jewellery crafting; addressing corruption in certain countries; reducing overtime at Thai crafting facilities; ensuring traceability of gold sourcing.

Mitigation Strategies

• Developed a four-step CSR Supplier Programme (screening, training, audits, corrective actions); implemented a Suppliers’ Code of Conduct; trained purchasing staff to identify and mitigate CSR risks; conducted independent CSR audits; worked to replace the internal Code of Conduct with the RJC Code of Practices; initiated a project to trace gold origin to responsible mining or recycling; implemented a financial literacy program for employees; optimized processes and hired more staff to reduce overtime.

Supply Chain Management

Responsible Procurement

• Suppliers’ Code of Conduct; four-step CSR Supplier Programme; supplier training; independent audits; corrective action plans.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: UN Global Compact, Responsible Jewellery Council (RJC)

Certifications: ISO 9001

Awards & Recognition

• Employer of Choice Award (PANDORA Australia)

Environmental Metrics

ESG Focus Areas

• Human Rights
• Health & Safety
• Environment
• Business Ethics
• Supplier Engagement
• Diversity
• Governance

Environmental Achievements

• Reduced CO2 emissions by 570 tonnes (4%) through a new industrial cooling pad system.
• Implemented new water recycling facilities, recycling 12.5% of total water input.

Social Achievements

• Launched PANDORA Ethics, a comprehensive CSR and compliance program.
• Achieved Responsible Jewellery Council (RJC) certification for the entire PANDORA Group.
• Reduced accidents at PANDORA Production Thailand from five in 2011 to three in 2012.
• Implemented a 360-degree appraisal tool for leaders, improving leadership performance.
• Rolled out a unique 360-degree appraisal tool for leaders, receiving structured feedback from their manager, peers and direct reports.

Governance Achievements

• Established PANDORA Ethics, a comprehensive CSR and compliance program.
• Achieved RJC certification.
• CSR will be on the Audit committee’s agenda twice a year.
• 25% of PANDORA’s Board of Directors are women (target of at least 37% by 2015).

Climate Goals & Targets

Environmental Challenges

• Counterfeit products undermining responsible business practices and consumer confidence.
• Complexity in decision-making due to increased supplier screening criteria.
• Ensuring compliance with PANDORA Ethics across the entire global workforce.

Mitigation Strategies

• Implemented comprehensive global surveillance, registration and control programs to combat counterfeiting.
• Developed a dialogue between purchasers and group CSR to manage supplier screening complexity.
• Launched a group-wide implementation and awareness campaign on PANDORA Ethics, including training modules, communication materials, and a compliance tool.

Supply Chain Management

Responsible Procurement

• Responsible Supplier Programme (screening, training, audits, dialogue)
• Supplier Code of Conduct
• Requirement for silver and gold from LBMA Good Delivery refiners

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Responsible Jewellery Council (RJC) Code of Practices, United Nations Global Compact

Certifications: ISO 14001 (environmental management), OHSAS 18001 (health and safety), ISO 9001 (quality standards), Responsible Jewellery Council (RJC)

Environmental Metrics

ESG Focus Areas

• People
• Product
• Planet

Environmental Achievements

• Reduced waste generation from 3,558 tonnes in 2012 to 2,954 tonnes in 2013 despite a 40% increase in jewellery production.
• Increased recycling rates for gypsum (46%), Murano glass (45%), and silicone rubber (29%).
• Initiated a project to achieve ISO 50001 certification on energy management (target Q2 2014).

Social Achievements

• Successfully integrated 2,000 new colleagues at crafting facilities in Thailand.
• Maintained a low accident rate at PPT with only five work-related accidents resulting in 12 lost working days.
• Implemented a range of changes based on employee suggestions from Radar Meetings (new uniform rules, improved tools, on-site convenience store).
• Continued focus on employee financial literacy through programs like “Happy Money” and “Manage Debt, Change Your Life”.

Governance Achievements

• Continued rollout of PANDORA Ethics programme, including training for all regional offices and relevant departments.
• Achieved group-wide certification under the Responsible Jewellery Council (RJC) Code of Practices.
• Maintained membership in the United Nations Global Compact.

Climate Goals & Targets

Environmental Challenges

• Increased electricity consumption (37%) and water consumption (41%) at PPT due to increased production and more complex jewellery designs.
• Decrease in water recycling percentage (from 12.5% to 3%) due to measurement method changes and technical challenges.
• Occasional overtime exceeding 12 hours per week at PPT, although compliant with Thai law and voluntary.

Mitigation Strategies

• Investing in production capacity and productivity improvements.
• Introduced shift work and LEAN production techniques.
• Recruited 2,000 new colleagues to reduce overtime.
• Working to address technical challenges related to water recycling.
• Initiated a project to achieve ISO 50001 certification on energy management.

Supply Chain Management

Supplier Audits: All potential high-risk suppliers audited in 2013.

Responsible Procurement

• Responsible Supplier Programme (screening, training, auditing)
• Chain-of-Custody Standard for gold and silver.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: RJC Code of Practices, UN Global Compact

Certifications: ISO 9001, OHSAS 18001, ISO 14001

Awards & Recognition

• Thai Prime Minister’s Award of Achievement (for Happy Money program)

Environmental Metrics

ESG Focus Areas

• Climate and Environment
• Circular and Sustainable Jewellery
• Workplace and Society

Environmental Achievements

• Reduced water consumption by 4% from 967,046 m3 in 2018 to 928,010 m3 in 2019.
• Reduced total waste at crafting facilities by 8.3% from 6,897 tonnes in 2018 to 6,321 tonnes in 2019.
• Maintained a high waste recycling rate of 88% at crafting facilities.
• Increased water recycling rate from 22% in 2018 to 23% in 2019.
• 71% of silver and gold in Pandora’s products came from recycled sources in 2019.

Social Achievements

• Launched a global partnership with UNICEF to empower vulnerable children, especially girls.
• Maintained high employee engagement with an index score of 81 out of 100.
• Introduced a new Cooperation Committee to enhance communication between employees and executive leadership.

Governance Achievements

• Aligned supplier code of conduct with the Ethical Trading Initiative’s ETI Base Code.
• Aligned audit protocol with the Sedex Member Ethical Trade Audit’s (SMETA) four pillars.
• 99% of total direct sourcing value was audited by third-party auditors.

Climate Goals & Targets

Environmental Challenges

• Reducing carbon emissions across the full value chain.
• Increasing the supply of responsibly sourced recycled silver.
• Ensuring inclusive business practices throughout the value chain.

Mitigation Strategies

• Partnering with suppliers to implement energy efficiency measures and increase renewable energy use.
• Increasing on-site renewable energy generation at Pandora crafting facilities.
• Ensuring adequate supply of recycled silver certified according to robust standards.
• Supporting development of schemes to minimize environmental and social risks in the recycling industry.
• Capacity building amongst suppliers and business partners.
• Integrating inclusivity parameters in supplier contracts.

Supply Chain Management

Supplier Audits: 16 independent third-party audits in 2019; 99% of total direct sourcing value audited.

Responsible Procurement

• Supplier code of conduct aligned with ETI Base Code.
• Category-specific criteria for product and material categories.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: UN Global Compact

Certifications: Responsible Jewellery Council (RJC)

Third-party Assurance: Ernst & Young

UN Sustainable Development Goals

• Not disclosed

Sustainable Products & Innovation

• Limited edition 'Beautifully Different' collection using leftover Murano glass.

Environmental Metrics

ESG Focus Areas

• Low-carbon business
• Circular innovation
• Inclusive and fair culture
• Responsible sourcing
• Climate change
• Sustainable materials
• Product quality and safety
• Employee health, safety and labour rights
• Inclusion and diversity
• Conflict minerals
• Responsible marketing
• Data security and privacy
• Packaging
• Business ethics and compliance

Environmental Achievements

• Switched to 100% renewable energy at crafting facilities in Thailand, reducing Scope 1 and 2 emissions by more than 25,000 tCO2e since 2019.
• Recycled 90% of all waste at crafting facilities.
• Increased water recycling rate from 14% in 2019 to 16% in 2020.
• Launched Pandora Brilliance, the company's first CarbonNeutral® certified product.

Social Achievements

• Maintained salaries for all 11,600 store colleagues throughout lockdowns.
• Conducted a company-wide survey to gauge employees’ views on inclusion and diversity.
• Raised USD 3.4 million for UNICEF, including a USD 1 million donation to their COVID-19 response.
• Introduced in-store repair services to extend the life of Pandora jewellery.

Governance Achievements

• Launched an updated Code of Conduct with mandatory training planned for 2021.
• Established a new cross-functional Responsible Sourcing Committee.

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impacting operations and supply chain.
• Increased waste due to COVID-19 protocols.
• Challenges in sourcing 100% recycled silver and gold.
• Identifying and mitigating human rights risks across the value chain.

Mitigation Strategies

• Implemented rigorous cleaning routines and digital innovations in stores.
• Developed global standard operating procedures for COVID-19.
• Engaged with key suppliers to develop a roadmap for using 100% recycled silver and gold.
• Conducted a human rights impact assessment covering 100% of operations.

Supply Chain Management

Supplier Audits: 15 independent third-party factory audits in 2020 (covering 30% of product supplier spending)

Responsible Procurement

• Supplier Code of Conduct
• Responsible Sourcing Policy
• SMETA 4-pillar audit methodology

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events disrupting production or supply chain

Transition Risks

• Emerging regulation
• Changing consumer preferences

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI Standards: Core option, SASB (Apparel, Accessories & Footwear), TCFD

Certifications: ISO 9001, 14001, 45001, LEED Gold (crafting facilities), RJC

Third-party Assurance: EY Godkendt Revisionspartnerselskab

UN Sustainable Development Goals

• SDG 12 (Responsible Consumption and Production)
• SDG 5 (Gender equality)
• SDG 8 (Decent work and economic growth)
• SDG 13 (Climate action)

Pandora's initiatives contribute to these goals through its commitment to recycled materials, diversity and inclusion programs, safe working conditions, and climate action targets.

Sustainable Products & Innovation

• Pandora Brilliance (lab-created diamonds)

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Low-carbon business
• Circular innovation
• Inclusive, diverse and fair culture

Environmental Achievements

• Achieved 100% renewable energy at crafting facilities via RECs and onsite solar generation.
• Reduced Scope 2 market-based emissions of crafting facilities and part of retail operations by 58% since 2019 baseline.
• Recycled 97% of all waste at crafting facilities.
• Launched Pandora Brilliance, the first collection using only lab-created diamonds.
• Reduced plastic content in jewellery boxes by >75% and greenhouse gas emissions by over 60% per box compared to previous packaging.

Social Achievements

• Established a comprehensive inclusion and diversity strategy focusing on gender and underrepresented groups.
• Donated USD 5.8 million to UNICEF since 2019.
• Expanded in-store repair services.

Governance Achievements

• Updated Supplier Code of Conduct, Responsible Sourcing Policy, Human Rights Policy, and launched a Responsible Marketing Standard.
• Implemented a new Anti-Money Laundering Programme.
• Rolled out training on the new Code of Conduct.

Climate Goals & Targets

Environmental Challenges

• Increased production led to challenges in keeping pace with demand for recycled metals.
• COVID-19 impacted workforce availability and increased waste generation.
• High employee turnover in stores, especially in the US.
• Supply chain disruptions due to COVID-19.

Mitigation Strategies

• Secured increased certified volumes of recycled materials and piloted a third-party audit mechanism for end-to-end traceability.
• Implemented COVID-19 safety measures, including testing and vaccination programs.
• Investigated solutions to increase installed solar capacity and maximize onsite renewable energy capacity.
• Engaged with local stakeholders to explore solutions for developers to add renewable energy capacity to the Thai grid.

Supply Chain Management

Supplier Audits: >99% of total direct supplier spend audited by a third party; 16 SMETA audits in 2021

Responsible Procurement

• Supplier Code of Conduct
• Responsible Sourcing Policy
• Materials Standard

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events disrupting production or supply chain

Transition Risks

• Emerging regulation
• Changing consumer preferences

Opportunities

• Development of energy-efficient products and processes

Reporting Standards

Frameworks Used: GRI Standards (Core option), UNGC, TCFD

Certifications: ISO 9001, ISO 14001, ISO 45001, RJC

Third-party Assurance: EY Godkendt Revisionspartnerselskab

UN Sustainable Development Goals

• Goal 5 (Gender equality)
• Goal 7 (Affordable and clean energy)
• Goal 8 (Decent work and economic growth)
• Goal 12 (Responsible consumption and production)
• Goal 13 (Climate action)

Pandora's initiatives contribute to these goals through its inclusion and diversity strategy, renewable energy use, responsible sourcing, waste reduction, and climate targets.

Sustainable Products & Innovation

• Pandora Brilliance collection (lab-created diamonds)
• New jewellery packaging with reduced plastic content

Awards & Recognition

• Two energy awards from the Ministry of Energy of Thailand

Environmental Metrics

ESG Focus Areas

• Low-carbon business
• Circular innovation
• Inclusive, diverse and fair culture

Environmental Achievements

• Reduced total greenhouse gas emissions by 6% compared to 2019 baseline
• Reduced emissions from own operations by 27% compared to 2021
• Reached 61% recycled silver and gold purchased in 2022
• Recycled 99.6% of all waste at crafting facilities in 2022
• Launched Diamonds by Pandora collection using 100% renewable energy and 100% recycled silver and gold

Social Achievements

• Achieved an 86% inclusion score in employee survey
• Increased the share of women in senior leadership to 29%
• Launched company-wide human rights programme
• Donated USD 10 million to UNICEF since 2019

Governance Achievements

• Elevated sustainability leadership within the organization
• Included sustainability targets in senior leaders' remuneration package
• Formalized sustainability oversight at the Board level
• Expanded training on business ethics topics
• Investigated all whistleblowing reports

Climate Goals & Targets

Environmental Challenges

• Scope 3 emissions increased by 4% due to higher purchased goods and services
• Lack of common standard on recycled materials
• Increased energy consumption in owned and operated stores due to increased number of stores
• Challenges in local operating contexts and loss of documents hindering remediation of supplier issues

Mitigation Strategies

• Continued development and implementation of supplier engagement program
• Expanding options for recycled sources and phasing out non-recycled stock
• Expanding purchase of RECs and exploring PPAs for renewable energy
• Developing and implementing a Materials Standard and Scorecard
• Adjusting supplier audit program for greater transparency and support

Supply Chain Management

Supplier Audits: 15 suppliers audited in 2022 (15% of total product spend)

Responsible Procurement

• Supplier Code of Conduct
• Responsible Sourcing Policy
• Materials Standard

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Transition Risks

• Regulatory changes
• Market shifts
• Consumer expectations

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI, SASB, TCFD, UNGC

Certifications: ISO 45001, ISO 9001

Third-party Assurance: EY Godkendt Revisionspartnerselskab

UN Sustainable Development Goals

• Goal 5 (Gender equality)
• Goal 7 (Affordable and clean energy)
• Goal 8 (Decent work and economic growth)
• Goal 12 (Responsible consumption and production)
• Goal 13 (Climate action)

Initiatives contributing to these goals are described throughout the report

Sustainable Products & Innovation

• Diamonds by Pandora collection

Awards & Recognition

• CDP 'A List' for climate action
• ASEAN Energy Awards 2022

Environmental Metrics

ESG Focus Areas

• Low-carbon business
• Circular innovation
• Inclusive, diverse and fair culture

Environmental Achievements

• Reduced total greenhouse gas emissions by 27% compared to 2019 baseline (Scopes 1, 2, and 3)
• Shifted sourcing to 100% recycled silver and gold for all jewellery by December 2023 (ahead of 2025 target)
• Achieved 86% renewable energy in own operations in 2023
• Reduced Scope 3 emissions by 21% versus 2022 and 15% compared to baseline

Social Achievements

• Increased women in leadership positions to 34% in 2023 (ahead of 2025 target of 33%)
• Achieved an 87% inclusion score in employee engagement survey
• Donated more than USD 11 million to UNICEF since 2019
• Launched responsible marketing training and unconscious bias training for retail employees

Governance Achievements

• Linked financing to greenhouse gas emission reductions and procurement of recycled silver and gold
• Established a CSRD Task Force
• Implemented a Board-approved Franchisee and Distributor Code of Conduct
• Updated whistleblower hotline and implemented Speak Up campaign

Climate Goals & Targets

Environmental Challenges

• Reaching 50% reduction in greenhouse gas emissions by 2030 will require innovation, collaboration, and strong leadership, especially considering business growth and expansion.
• Obtaining necessary data while complying with data collection restrictions on DEI parameters.
• Challenges in obtaining full overview of supplier-specific data dating back to baseline year for Scope 3 emissions.
• Limited availability of low-carbon solutions in transportation sector.

Mitigation Strategies

• Increased engagement with suppliers on emissions reductions.
• Refining data collection approach for DEI in 2024.
• Continued work to establish full overview of supplier-specific data for Scope 3 emissions.
• Exploring opportunities to optimise modes of transport and processes, and following long-term development of low-carbon solutions closely.

Supply Chain Management

Supplier Audits: 36 suppliers, 50 factories audited in 2023 (32% of in-scope spend)

Responsible Procurement

• Supplier Code of Conduct
• Responsible Sourcing Policy
• Materials Standard
• Chain of Custody (CoC) standards for recycled silver and gold

Climate-Related Risks & Opportunities

Physical Risks

• Tropical cyclones, air pollution, water scarcity

Transition Risks

• Regulatory changes, market shifts, scarcity of materials

Opportunities

• Development of energy-efficient products, expansion of renewable energy

Reporting Standards

Frameworks Used: SASB (Apparel, Accessories & Footwear), TCFD, EU Taxonomy

Certifications: ISO 45001 (crafting facilities), ISO IEC 17025 (crafting facilities laboratory)

Third-party Assurance: EY Godkendt Revisionspartnerselskab (limited assurance on Scopes 1, 2, 3 emissions and recycled silver and gold)

Sustainable Products & Innovation

• Pandora Lab-Grown Diamonds collection (using 100% renewable energy and recycled silver/gold)

Awards & Recognition

• CDP 'A' score for climate action and disclosure (2023)
• #21 on TIME Magazine's World's Best Companies 2023
• Green Star Award (Thailand, 2023)
• Corporate Social Impact Award (American Chamber of Commerce in Thailand, 2023)
• Excellence Conservation Energy Award (Thailand Energy Awards, 2023)
• ESG 2023 Award for Circular Economy achievements (Asian Business Review magazine, 2023)