Chopard’s gold standard

Please note: This article is designed to be thought leadership content, to offer big picture views and analysis of interesting issues and trends that matter to our clients and the world in which we live. It is not designed to be taken as expert advice, investment advice or a recommendation, and any reference to specific companies is therefore not an opinion as to their present or future value or broader ESG credentials. Reliance upon any of the information in this article is at the sole discretion of the reader. Some of the views and issues discussed in this article may derive from third-party research or data which is relied upon by Barclays Private Bank and may not have been validated. Such research and data are made available as additional information for the reader where appropriate.

Swiss watch and jewellery maison Chopard wants to prove that luxury doesn’t need to cost the earth. Martin Staub, Private Banker, spoke to Co-President and Artistic Director Caroline Scheufele about the evolution of their designs and materials, and the creation of the iconic Palme d’Or trophy. 

Martin Staub (MS): It’s a real pleasure to talk to you today. I’d like to start by asking about the use of ethical gold in your watches and jewellery. How did this journey start?

Caroline Scheufele (CS): I first became aware of the issues surrounding gold sourcing in 2012. Personally, I was shocked to learn that there are millions of men, women and children around the globe digging up gold from valleys and hills, often working in unsafe conditions and unable to get a fair price for their work¹. 

From that point, my family and I were determined to change not only Chopard as a company and brand, but to contribute towards meaningful change within the wider industry. 

In 2013, we launched our in-house, multi-year programme, The Journey to Sustainable Luxury². It committed us to responsible sourcing and helping those who are often overlooked in the supply chain. We started by forming a philanthropic relationship with the Alliance for Responsible Mining, which supports gold mining communities in achieving Fairmined certification³. This standard guarantees that gold is sourced from a responsible origin. We also offer these communities training, social welfare and environmental support. 

Following this, we created several watch and jewellery lines from responsibly sourced materials – the first being the High Jewellery Green Carpet Collection, which was unveiled during the 2013 Cannes Film Festival⁴.

We reached a special milestone in 2018, becoming the first watch and jewellery maison to commit to using 100% ethical gold for all our watch and jewellery pieces⁵. I am very proud to have instigated the idea that a different, more responsible way of doing business was possible within Chopard. While it hasn’t always been easy, it is certainly achievable.

MS: You have now continued this approach by switching to recycled steel in your pieces. Is this something you would like to see others in your industry adopt?

CS: Yes, for sure, and there is a long way to go. This announcement builds on our use of Lucent Steel™ in our products, which is made from 70% recycled steel⁶. The move also marked a key step in our multi-year project to make use of more responsible steel. As a result, and by the end of 2023, all Chopard steel watches, including bracelets and cases, should include 80% recycled steel. By 2025, this figure will hopefully rise to a minimum of 90%⁷. 

Chopard has underlined this commitment by joining the Climate Group’s Steel Zero initiative⁸, which works with the industry to speed up the shift towards net-zero steel. Our goal is to have an impact on a large scale. 

MS: Why do you think there is a perception that sustainable practices in jewellery making somehow compromise quality?

CS: People may sometimes associate sustainability – especially recycled products – with inferior quality. However, this is an inaccurate assumption, certainly in the case of the material we use.

We put four years of research and development into maintaining the quality of our products, and manufacturing recycled steel according to our extremely strict specifications. These specifications significantly increase manufacturing time, as well as wear-and-tear on machining tools. However, all the properties of Lucent Steel™ are maintained in our 80% and 90% recycled versions⁹. 

Gold is also a material that can be melted and remelted indefinitely without losing any of its characteristics. We invested in our own gold foundry a long time ago, which provided a clear advantage for the traceability of our gold.

MS: How important is being a member of the Responsible Jewellery Council for Chopard?

CS: Becoming a member of the council was one of the first steps on our journey to sustainable luxury. It underlined our commitment to engaging with the wider industry and helping to reinvent key points in the value chain. 

Having now been a certified member for more than 10 years¹⁰, it contributes to building trust and confidence among our stakeholders, and especially our customers.

MS: It would be interesting to hear a little more about Chopard’s connection with the film industry. You redesigned the Palme d’Or in 1998. How does this reflect your commitment to sustainability?

CS: The Palme d’Or is one of the world’s most iconic trophies, and it was an honour to be asked to craft it. We’re particularly proud that it is now made from Fairmined-certified ethical gold¹¹, and that we have the opportunity to raise awareness of the issue of responsible sourcing at such a prestigious, globally celebrated event.

MS: This connection with the film industry has continued with your recent set of short films featuring Julia Roberts. Tell us more about this collaboration.

Julia has been the face of our Happy Sport and Happy Diamonds collections since 2021¹², and this new campaign builds on that momentum.

With Julia becoming our global ambassador, we wanted to celebrate this shared love of cinema with the launch of 12 video clips created by director James Gray.

And the collaboration goes beyond a campaign. This year Julia joined us for the Watches and Wonders Geneva Salon, which is the major business event for the watch industry. Here, we revealed Chopard’s commitment to rolling out recycled steel in the production of all our watches by the end of 2023, and to tackling our products’ carbon footprint¹³.

MS: Your first Green Carpet Collection started your journey to sustainable luxury. What have been the highlights so far?

CS: There have been several milestones but the first that comes to mind is the acquisition of a rare and responsibly sourced 342-carat diamond¹⁴, which was the inspiration for our Garden of Kalahari collection. We have also used other responsibly sourced stones such as opals, emeralds and tourmalines as part of our Green Carpet Collection.

Since 2019, we have worked in partnership with Swiss Better Gold to source gold from the Barequeros. This community of Colombian artisanal gold-panners is one of the most environmentally conscious gold mining operations in the world¹⁵.

MS: And, one final question, if I may – what does the sustainable future look like for Chopard?

CS: The hot topics for sustainability in the luxury sector in the coming years are likely to be a focus on climate change and decarbonisation actions in our value chain, as well as biodiversity protection, traceability and transparency. These are all topics we are actively working on at Chopard. 

This communication is general in nature and provided for information/educational purposes only. It does not take into account any specific investment objectives, the financial situation or particular needs of any particular person. It not intended for distribution, publication, or use in any jurisdiction where such distribution, publication, or use would be unlawful, nor is it aimed at any person or entity to whom it would be unlawful for them to access.

This communication has been prepared by Barclays Private Bank (Barclays) and references to Barclays includes any entity within the Barclays group of companies.

This communication:

(I) is not research nor a product of the Barclays Research department. Any views expressed in these materials may differ from those of the Barclays Research department. All opinions and estimates are given as of the date of the materials and are subject to change. Barclays is not obliged to inform recipients of these materials of any change to such opinions or estimates;

(ii) is not an offer, an invitation or a recommendation to enter into any product or service and does not constitute a solicitation to buy or sell securities, investment advice or a personal recommendation;

(iii) is confidential and no part may be reproduced, distributed or transmitted without the prior written permission of Barclays; and

(iv) has not been reviewed or approved by any regulatory authority.

Any past or simulated past performance including back-testing, modelling or scenario analysis, or future projections contained in this communication is no indication as to future performance. No representation is made as to the accuracy of the assumptions made in this communication, or completeness of, any modelling, scenario analysis or back-testing. The value of any investment may also fluctuate as a result of market changes.

Where information in this communication has been obtained from third party sources, we believe those sources to be reliable but we do not guarantee the information’s accuracy and you should note that it may be incomplete or condensed.

Neither Barclays nor any of its directors, officers, employees, representatives or agents, accepts any liability whatsoever for any direct, indirect or consequential losses (in contract, tort or otherwise) arising from the use of this communication or its contents or reliance on the information contained herein, except to the extent this would be prohibited by law or regulation.