Corporate environmental assessment of a large jewelry company: From a life cycle assessment to green industry

Abstract

Jewelry and precious metal industry has positively affected global economy via high profits and incomes as well as potentially harmed the environment and society due to its resource intensiveness and pollution. The objectives of this research are to define significant sources of environmental impact throughout a large jewelry manufacturing value chain, and to understand the consequences of using materials from different sources in order to identify potential solutions towards green industry. Feasible solutions to environmental impact reduction regarding material sourcing, energy consumption and waste treatment are recommended based on the comparison of the results. An environmental assessment is conducted following a life cycle assessment framework provided in ISO 14040:2006 and ISO 14044:2006. The assessment focuses on the impacts of environmental interventions from the value chain associated with the company operations in 2013. All in all one business-as-usual, ten alternative and nine sensitivity scenarios are developed to assess the impacts from the company’s operations in 2013, to determine potential impact reductions from feasible solutions and to investigate the robustness of the results. The representative data for manufacturing stage were primarily gathered from the company while the data for other stages are secondary data. Gold and silver mining and refining is the largest contributor from the overall supply chain for all impact categories considered. Using recycled gold and silver is the most effective solution to decrease life cycle negative impacts. The use of gold and silver recycled from high-value industries (i.e. jewelry production) produces less adverse impacts compared to gold and silver recycled from end-of-life electronic waste. According to the statistical data, gold and silver mining and refining could be the suppliers capable of supplying gold and silver because of the market constraints of recycled gold and silver. Green mining operations are introduced as alternatives to reduce impact directly generated from mining operations. For manufacturing, electricity consumption reduction shows a potential impact reduction. Using recycled gold and silver is recommended for jewelry manufacturers who plan to reduce environmental impacts. Using gold and silver from green mining is also recommended when the use of gold and silver from mining is necessary. Reducing electricity consumption in manufacturing is also one option for the company since it could be activated directly.