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Responsible Sourcing

Responsible Sourcing Policy

Effective: August 30, 2016


Paolo Costagli, Inc. (the “Company” or “We”) are committed to the responsible sourcing of our gemstones and metals used in our fine jewelry.  We respect our environment, global human rights, and adhere to applicable laws and regulations in the manufacturing and sourcing of our fine jewelry to preserve these rights for our global community. This Responsible Sourcing Policy sets forth the practices and procedures our Company follows to manufacture our jewelry in compliance with applicable laws, best practices and industry standards for highest ethics and quality in jewelry.


Conflict-Free Diamonds – Our Guarantee

Our Company understands that our customers are concerned where their diamonds originate due to certain human rights abuses involved with rough diamond procurement. We guarantee our customers that our suppliers guarantee each diamond as “conflict-free”.  Conflict-free diamonds are those precious stones which were not obtained in association with human rights abuses, child labor, violence, or environmental degradation. Our “conflict-free” guarantee assures our customers that diamonds and metals used in our fine jewelry are NOT procured from any sources that are prohibited by law. To that end, our Company complies with the Patriot Act, the Kimberley Process, and various United Nations resolutions, the diamonds we sell have been obtained using legitimate means and due diligence processes which review the sourcing of diamonds and metals from the mines throughout the supply chain.


Internal Controls Which Exceed Legal Requirements 

In addition, our Company follows internal guidelines and protocols which exceed legal requirements and governmental regulation. For example, our suppliers provide our Company with a certification on their invoices which guarantees that the diamonds sold to us adhere to the Kimberly Process and are not mined from prohibited sources. We do not purchase polished diamonds from sources which are not members of the professional diamond trade.


Kimberley Process & U.S. Patriot Act Compliant

 The diamonds and metals used in our jewelry are compliant with the Kimberly Process and the U.S. Patriot Act. The Kimberley Process Certification Scheme (“KPCS”) was established to certify the origin of rough diamonds from sources known to be conflict-free by establishing guidelines for the KPCS, which were later adopted by the United Nations. To ensure compliance, independent auditing systems are tasked with tracking diamonds from their place of origin to delivery. Polished diamonds sold in the U.S. must adhere to the U.S. Patriot Act which requires that every U.S. dealer adhere to the KPCS guidelines or be subject to penalties from the U.S. Justice Department and the U.S. Department of Treasury.

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