Sustainability in the Swiss Watch Industry: Part 1 – Mining and Materials
The subject of sustainability remains a difficult – and even taboo – topic in the world of luxury goods. Despite arguably being inherently sustainable due to their longevity, Swiss watches do fall into this category of premium products. Therefore, it is the responsibility of those in the industry – as well as consumers – to considertheethics and environmental impacts of traditional watchmaking.
We decided to take a look at both the good and the more controversial elements of the Swiss watch industry, in the hope of helping you to make an informed decision about which products you wish to call your own. Wealsospoke with the World Wildlife Fund’s Global Lead for Mining and Metals, Tobias Kind-Rieper, to get an expert environmental opinion.
This week, we kick off our Sustainability Series with an increasingly discussed topic in the industry: the extraction and use of raw materials.
Knowledge is key: Repercussions of metal mining
It would be impossible to write a series on sustainability in the Swiss watch industry without taking into account metal mining. So, let’s start with this all-important topic. A key factor to consider when it comes to any metal is that it is non-renewable. When it’s gone, it’s gone. Furthermore, metals aren’t exactly easy to obtain. Aluminium, for example, which is found on many sports watches’ bezels, requires particularly large amounts of energy to be extracted.
The extraction of aluminium, often found on watch bezels, is extremely energy intensive
Extracting metal ore, whether iron ore (the basis of steel), platinum, or otherwise, requires large-scale clearance of land and high energy extraction processes. Additionally, metal ore mining usually takes place in remote locations, leading to high levels of transportation pollution. On the other hand, metal can be continuously recycled; something that is gaining momentum in the watch industry thanks to leading horology houses such as Panerai.
The Panerai Submersible eLAB-ID
Recycling metal can make a significant difference; recycling one tonne of metal scrap, for example, uses up to 95 percent less energy than what is required to create one “new” tonne of metal from raw material. Additionally, it is worth keeping things in perspective; while the practice of recycling metal is commendable, watches ultimately use tiny amounts of metal in comparison to many other everyday products, from cars to household appliances.
Gold in the Swiss watch industry
The same cannot be said, however, for gold – a common material in the Swiss watch industry. The precious metal gold requires miners to remove enormous amounts of earth in order to attain tiny amounts. In fact, one tonne of rock holds between only one to six grams of gold. Additionally, there are also numerous other environmental challenges throughout the gold mining process, from pollution to deforestation. Water pollution is a particularly serious matter. In gold-rich countries such as parts of Latin America, Africa, and Asia, water is already scarce, and the toxic substances involved in the process of obtaining gold can play significant roles in the destruction of entire ecosystems.
The environmental impact of gold mines can be severe
This also applies to artisanal and small-scale gold mining, despite it being more encouraged than large-scale mines. Perhaps surprisingly, artisanal and small-scale gold mining is the leading source of mercury pollution in the Amazon. This is currently receiving a high level of attention worldwide, as several species of the local freshwater dolphin are dwindling in numbers.
According to Tobias Kind-Rieper, WWF’s Global Lead for Mining and Metals, the damages of such mining also affects indigenous and other locals. “We can see that mining has already affected up to two or three million people with high mercury contamination,” he says. “The health of many indigenous people is under threat. We have seen so many pictures of pregnant women being affected through contamination after they eat fish. There should be no mining in protected areas. But if mining is to be done around indigenous communities, it needs to be done responsibly.”
Tobias Kind-Rieper – Global Lead Mining & Metals WWF
Given these disheartening facts, it’s not surprising that according to a survey by Deloitte last year, 50 percent of consumers now consider sustainability when buying a watch. Many are willing to pay more in order to have a product that can demonstrate its supply chain with transparency. Nevertheless, a number of brands within the Swiss watch industry still decline to share origins or statistics regarding their gold. While disconcerting to consumers, this is not necessarily to be seen as dubious.
A number of Swiss watch manufactures are cautious about sharing production statistics
One reason that some manufactures do not share information about their gold is that competitors may use these figures to estimate levels of production. Watch manufactures are also notoriously secretive. Given watch companies’ exclusive approach, many people are not aware that use of recycled gold is far more common than one might expect. Companies also keep quiet because inevitably, in the world of luxury goods, revealing that one reuses or recycles gold can even deter customers. Nevertheless, the air of secrecy is undoubtedly something that needs to change. After all, according to WWF 2018 report, between 60 to 70 percent of globally mined gold travels to Switzerland to be refined, with the watch and jewellery industry using over 50 percent of all annual gold production. However, although it is being refined in Switzerland, it is not necessarily being used by Swiss companies but rather sometimes passing through for refinement.
Between 60 to 70 percent of globally mined raw gold travels to Switzerland to be refined
Diamonds in the Swiss watch industry
As of 2018, about 67 percent of newly mined rough diamonds produced globally were used by the watch and jewellery industry. Nevertheless, few consider how manufactures obtain their diamonds. Even fewer are aware of how suppliers extract them. Diamonds lie about one hundred miles underground in a rock called kimberlite. Inside this rock, heat and pressure from the earth naturally crystallise carbon into becoming diamonds. The gases produced from nearby volcanoes bring them closer to the surface very quickly. However, extracting these diamonds is a hugely laborious process, but it reaps its rewards through its incredibly high and stable value. In fact, diamonds are often considered to be a more stable investment than both silver and gold.
The Kimberley Process
As a result of their consistently high value, the 90s saw a wave of civil wars break out over these so-called “blood diamonds”. Countries such as Sierra Leone and Angola were fighting violently over highly lucrative land rich in kimberlite. This is why, in 2000, the international community (now 83 governments in total) came up with the Kimberley Process, establishing a zero-tolerance approach to use of conflict diamonds.
The Kimberley Process requires the issuance and authorisation of a certificate for every single rough diamond up for purchase. Switzerland has been a part of the Kimberley Process since 2003, and the Ethics Code of the Swiss Watch and Jewellery Industry, adopted in 2006, specifically refers to the rules of the Kimberley Process. That said, the Kimberley Process boils down to a government’s role in rough diamond trading. This is potentially problematic given that the Swiss watch industry tends to work with polished diamonds. Therefore, watch brands are technically not directly responsible for their diamonds’ sources.
Switzerland has been a part of the Kimberley Process since 2003
Responsible Jewellery Council (RJC)
The majority of prominent Swiss watch brands are members of the Responsible Jewellery Council. This primarily aims to transform supply chains so that they become more responsible and sustainable. The RJC sets clear standards for pretty much all mainstream minerals and metals in the Swiss watch industry. Seeing that a company is a member of it can help to assure customers that they are purchasing products from an ethical brand.
Can certifications be trusted by consumers?
So how effective really is the RJC – and can consumers trust it? I put this question to Tobias Kind-Rieper, WWF’s Global Lead for Mining and Metals. “Certification is always good for companies in general,” he says. “However, our approach is that certification is only one part of it. In general, when it comes to responsible mineral sourcing, certification often has problems in implementation, e.g., when it comes to trusting the source. There is always something a certification can’t 100 percent cover. It is important that companies ensure traceability and responsible sourcing along their supply chains, which often need measures beyond certification.”
“Company sustainability reports should be publicly available,” Kind-Rieper continues. “For the consumer, it is important to have the possibility to find out what a company’s audit says and what a company does to minimise the negative impact on people and the environment. When investing in a new watch, it could well be worth taking the time to research your chosen brand individually.” We’ve got you covered on this topic – in Part 2 of our Sustainability Series, we will introduce you to some of the brands acting as role models within the Swiss watch industry.
The Deloitte Swiss Watch Industry Study 2020. Deloitte, 2020. Accessed 5 July 2021.
Power Up Switzerland: Improving potential and enhancing competitiveness. Deloitte, 2020. Accessed 5 July 2021.
A Precious Transition: Demanding more transparency and responsibility in the watch and jewellery sector. Environmental rating and industry report 2018. WWF, 2018. Accessed 5 July 2021.
Tags
Home » Editorial » Sustainability in the Swiss Watch Industry: Part 1 – Mining and Materials
Breitling celebrates American automotive culture with the Top Time Classic Cars Capsule collection. For this purpose, the Swiss company is presenting three chronographs, each inspired by a classic racing car from the 1960s. They appear with eye-catching dials that are intended to capture the feeling of freedom and joy of life that emanates from the…
The peripheral winding rotor is en vogue – and therefore used more and more in the watch industry. The peripheral alignment and space saving rotor enables the movement and hence the case to be slimmer and at the same time offers an unhindered view onto the movement, which so far has been partly covered by…
October 24 is a day of significance for A. Lange & Söhne. On this very day in 1994, Walter Lange and Günter Blümlein presented the company's first four watches in Dresden. Since then, the 24th has been regarded as the manufacture's birthday. This year, it is being honoured with a limited edition of a model…
Every watch manufacture has one or more iconic models that have enjoyed great popularity for years. For Piaget, the Polo watch line is one of them. Since its launch in 1979 as the brand's first sports watch, it has established itself as the Maison's best-selling collection. Thanks to the Polo, the watch manufacture has already…
For some people travelling is the epitome of freedom – for others it is just normal daily business. “Once a year you should visit a place you have never been before” Dalai Lama said and points out a desire that is deeply rooted in many people. In this growing connected world people don’t only travel…
It is one of the biggest privileges of our time: To have space to ourselves. To enjoy the wideness. To become one with nature, rather than bumping into masses of people in an overcrowded city. This is how life was long before the current world crisis, and will probably become an even bigger and more…
If there’s one thing Piaget is known for, it’s gold. One of the only horology houses to cast its own gold, Piaget’s work with the material has long been recognised in the industry, from its so-called ‘coin watches’ of the 1940s to its first ground-breaking gold Polo watches. Only in 2016 were the sporty steel Polo S iterations of…
Building the thinnest watch in the world is undeniably one of the most competitive and impressive record chases in modern day horological engineering. Whilst many brands have produced thin watches, only a few brands have ever been truly in competition for the trophy – predominantly Bulgari, Richard Mille and Piaget. In this article, I will…
When Axel Leuenberger and his three companions decided to launch a new watchmaking company, they had a fairly clear idea of their goal: to create timepieces that were ‘beyond products’. Leuenberger, the CEO of Vanguart watches founded in 2017, is rather laidback when describing his integral role at the company: ‘I jump between various roles;…
On 2 October 2024, what had long been the subject of speculation was finally confirmed: LVMH and Formula 1 officially announced a new partnership. In a year that sees Formula 1 celebrating its 75th anniversary, LVMH gains the opportunity to bring its portfolio of 75 brands into the pinnacle of motorsport – and to grant…
Forays into the fashion world are an increasingly prevalent – yet often vehemently contested – occurrence in the Swiss watch community. Comments on various horology sites vary from ‘Do you even know your audience?’ and ‘In what way do you think collectors can possibly relate to this?’, to ‘What happened to exclusivity?’ Wait – what…
Breitling has been enjoying a new lease of life since mid-2017, under the new leadership of Georges Kern. His manufacture doesn’t simply offer a diverse array of models for the sake of wide-reaching popularity. Yet a broad appeal is exactly what the Swiss horology house is now enjoying. When Kern took over as CEO, he…
When it comes to the LVRR-01 Chronographe à Sonnerie, it’s a tale of opposites: an artisanal workshop tucked away in Geneva and the largest luxury lifestyle brand on the planet, coming together as one. When Louis Vuitton x Akrivia announced that they would be collaborating to create a new watch, we questioned how these vastly different brands could come together…