Brilliant Earth 2022 Mission Report
This is our second Mission Report. It is based on calendar year 2022 except where otherwise noted. It covers all entities within our operational control and discusses how we are influencing change along the supply chain. This Report also includes our Sustainability Accounting Standards Board (SASB) disclosure, which is aligned with SASB’s standards for Consumer Goods.
jewelry
report
mission report
Brilliant Earth
2022
transparency
sustainability
compassion
inclusion
governance
ESG
ESG Goals
Brilliant Earth
mission report, documet, 2022
2022 MISSION REPORT
AAT A GLANCET A GLANCE TRANSPARENCY SUSTAINABILITY COMPASSION INCLUSION GOVERNANCE ESG GOALS APPENDIX CONTENTS OUR MISSION Our Mission is to cultivate a more transparent, sustainable, compassionate, and inclusive jewelry industry. Since our founding, our Mission has been at the core of everything we do. Our Mission and ESG Goals are underpinned by our foundational pillars: 2 2022 MISSION REPORT
AT A GLANCE TRANSPARENCY SUSTAINABILITY COMPASSION INCLUSION GOVERNANCE ESG GOALS APPENDIX CONTENTS TABLE OF CONTENTS
AAT A GLANCET A GLANCE TRANSPARENCY SUSTAINABILITY COMPASSION INCLUSION GOVERNANCE ESG GOALS APPENDIX CONTENTS About Brilliant Earth In 2005, we launched Brilliant Earth to raise the standards in the jewelry industry while creating beautiful fine jewelry that is different in every way – how it’s made, how it’s sold, how it’s sourced and crafted, and how it gives back. As a result, we go beyond current industry practices for sourcing, use recycled precious metals to minimize our environmental footprint, and support environmental and social causes through our giving back initiatives. About This Report This is our second Mission Report. It is based on calendar year 2022 except where otherwise noted. It covers all entities within our operational control and discusses how we are influencing change along the supply chain. This Report also includes our Sustainability Accounting Standards Board (SASB) disclosure, which is aligned with SASB’s standards for Consumer Goods. This year, we are also reporting to the Global Reporting Initiative (GRI) 2021 Universal Standards. The GRI and SASB disclosures can be found in the appendices. Data has not been externally verified. Forward-Looking Statements Trademarks This Mission Report contains certain "forward-looking statements" concerning our expectations, goals, objectives, plans, and projections with respect to environmental matters, corporate responsibility, sustainability, inclusivity, employee relations, and procurement. One can identify these Brilliant Earth, Beyond Conflict Free, Truly Brilliant and other forward-looking statements by the fact that they use words such as "achieve," "ahead," "aims," "continue," "expects," "forward," "furthering," "future," "goals," "implement," "plans," "seek," and "will" and other words and terms of similar meaning and expression in connection with Brilliant Earth marks are trademarks or registered trademarks any discussion of future sustainability initiatives and objectives. One can also identify forward-looking statements by the fact that they do not of Brilliant Earth, LLC in the US and other countries. All other relate strictly to historical or current facts. The forward-looking statements are based on our current plans and involve inherent uncertainties and trademarks are the property of their respective owners. assumptions that could cause actual outcomes to differ materially from the current or reported plan. The statistics and metrics included in this Report may be reported as estimates and may be based on assumptions or developing standards. The standards and codes of conduct for third-party suppliers are not guarantees that suppliers will follow the codes in all instances, and suppliers bear primary responsibility for meeting our standards and expectations. We believe that we have been prudent in our plans and assumptions; however, no assurance can be given that any sustainability goal or plan set forth in forward-looking statements can or will be achieved, and readers are cautioned not to place undue reliance on such statements. We undertake no obligation to update any of the forward-looking information in this Report, whether as a result of new information, future events, changes in sustainability objectives and expectations, or otherwise. 4 2022 MISSION REPORT
AAT A GLANCET A GLANCE TRANSPARENCY SUSTAINABILITY COMPASSION INCLUSION GOVERNANCE ESG GOALS APPENDIX CONTENTS MESSAGE FROM OUR CEO We are excited to release our second annual Mission Report. We know that our customers come to Brilliant Earth for products and experiences that will bring them joy and that will reflect When we released our first report as a public company after our memories throughout their lifetime. We love being a part of IPO a few months earlier, we were proud to showcase to the these special moments. world the pillars that have served as Brilliant Earth’s foundation since we started in 2005 – transparency, sustainability, And as we work every day to live up to that responsibility, we compassion, and inclusion. remain as committed as ever to our Mission and the principles on which we’ve built Brilliant Earth. In the year since our inaugural report, we never lost focus on these values and ideals that drive us, or on our Mission to We hope you enjoy our Mission Report. Thank you for taking the modernize and transform the jewelry industry. time to learn about our environmental, social, and governance- related work. We look forward to continuing to be a part of your We have spent the last year building on our progress and finding lives, to furthering our progress on our Mission and our ESG new opportunities to drive our Mission forward. I’m particularly Goals, and to leading the industry to even greater heights in proud of our early decision in February 2022 to delist certified the years ahead. Russian-origin diamonds that could help fund the invasion of Ukraine; of our team’s progress in energy conservation, Sincerely, renewable energy, and recycled precious metals; and of our Company’s continued leadership in traceability, sustainability, Beth Gerstein and worker safety. Beth Gerstein I’m also proud of our employees for more than doubling Co-Founder & Chief Executive Officer their volunteering efforts, and of tripling the Brilliant Earth Foundation’s contributions to programs that support reproductive justice, humanitarian relief, rehabilitation of land destroyed by unregulated mining, and fair trade in artisanal mining. 5 2022 MISSION REPORT
AAT A GLANCET A GLANCE TRANSPARENCY SUSTAINABILITY COMPASSION INCLUSION GOVERNANCE ESG GOALS APPENDIX CONTENTS AT A GLANCE Premier, omnichannel fine jeweler for Customers in MILLENNIAL AND 25 SHOWROOMS 50+ COUNTRIES GEN-Z CONSUMERS around the world in the US and growing LESS THAN 1% of natural diamond suppliers meet our standards Built In’s Best Places to Work ETHICALLY SOURCED FEMALE-LED WINNING engagement rings female majority THOUSANDS OF WORKPLACE wedding rings 46% BIPOC BLOCKCHAIN-ENABLED fine jewelry diamonds in 13 cities MISSION-DRIVEN 98% and committed to recycled gold $440 MILLION Pure Earth transparency, sustainability, 97% recycled silver in sales in 2022 IMPACT AWARD compassion and inclusion WINNER 6 2022 MISSION REPORT
AT A GLANCE Selective Origins Blockchain Technology NATURAL We source our natural diamonds from Blockchain technology automates traceability approved mines with strong social and across the global supply chain, from mining environmental governance practices operator to the ultimate end consumer, with DIAMONDS in Botswana, Namibia, Lesotho, South a digital asset detailing information about Africa, and Canada, which are ranked the diamond’s origin and journey. This is the low or moderate risk. future of supply chain traceability and is an Our Beyond Conflict Free™ diamonds continue to exceed investment we are proud to make and grow. current industry standards and are selected for their ethical Living Our Values We currently offer thousands of blockchain- The day after Russia invaded Ukraine in enabled diamonds. and environmentally responsible origins. February 2022, we removed Russian-origin diamonds from our website even as they Truly Brilliant™ Natural Diamonds continued to be bought and sold globally. Our Truly Brilliant™ natural diamond suppliers We’re proud of the fast and decisive action use sustainable production practices, such we took to help ensure that our products as renewable energy or green building do not support the invasion of Ukraine. construction. 7 2022 MISSION REPORT
AT A GLANCE LAB GROWN DIAMONDS We are creating the standard for traceable, sustainable, and responsibly manufactured lab grown diamonds. State-of-the-Art Technology Truly Brilliant™ Lab Diamonds Lab grown diamonds are created using advanced Our Truly Brilliant™ lab diamonds are made using technology to replicate the conditions under which sustainable production practices, such as renewable diamonds develop in nature. energy or Renewable Energy Credits. The Same Sparkle Leading the Industry These diamonds have the same physical, chemical, The lab grown diamond industry has no defined and optical characteristics as natural diamonds and standard to ensure responsible manufacturing, so exhibit the same fire, scintillation, and sparkle. we created our own standard. Never Mined Lab grown diamonds provide a mining-free alternative to natural diamonds. 8 2022 MISSION REPORT
AT A GLANCE GEMSTONES Our ethically sourced colored gemstones are from select origins, and we are as strict about our suppliers as we are about their sources. Partnering for Good Continuous Process We have long-term partnerships with gemstone We require our gemstone suppliers to have close suppliers who are passionate about their products and relationships with their mining sources, and we can demonstrate traceability in their supply chains. regularly evaluate them and their countries of origin to push for additional visibility and transparency into As Responsible As They Are Beautiful their supply chains. In striving to offer gemstones sourced in alignment Handpicked with environmentally responsible principles, we approve origins with mining regulations and Our gemstones are individually inspected and requirements for rehabilitation of the land. handpicked by our expert gemologists. 9 2022 MISSION REPORT
AT A GLANCE RECYCLED PRECIOUS METALS We source traceable, responsible precious metals to reduce our social and environmental footprint. You Don’t Even Have to Ask Only Certified Refiners Whether creating your own pieces or choosing Our precious metals are sourced from certified from our selection, recycled gold and silver are responsible refiners who also hold recycling used across our collections.* certifications from the Responsible Jewellery Council or third-party validator SCS. No "Dirty Gold" We require our suppliers to use recycled precious Independent Verification metals, and we do not use so-called "dirty gold." Our jewelry suppliers participate in annual "Dirty gold" mining has a history of civil war, is independent verification of their recycled one of the most environmentally destructive types metal purchases to help us calculate our of mining, and often pays miners low wages in recycled percentages. dangerous working conditions. *Certaincomponentsandfindings,likepegheads,posts,clasps,tennisbraceletmountings, andchains,maynotbefromrecycledsourcesduetolimitedavailability. 10 2022 MISSION REPORT
AT A GLANCE FAIRMINED COLLECTION We’ve made one important exception to our recycled metal focus: Gold for Good from Fairmined. Gold for Good Is Good for Everyone Ongoing Advocacy for Artisanal Miners Artisanal small-scale miners (ASM) are miners who use In 2015, we became a Fairmined Licensed Brand and picks, shovels, and human strength. ASM make up launched our first Fairmined collection. We introduced 90% of the global workforce for gold extraction and are a new Fairmined collection, Gold for Good, in 2021 and responsible for 20% of global gold production. With added new styles to this collection in 2022. 20 million small-scale miners worldwide, empowering artisanal gold miners has positive social potential. Providing Miners with Financial Incentives Through its mine-to-market approach, Fairmined By offering a Fairmined collection, we provide Fairmined empowers ASM and the families they support, while certified miners with economic incentives for developing ensuring that their gold meets the Fairmined Standard and using responsible practices. The Fairmined Standard for social and environmental practices. also sets requirements for small-scale operations with low environmental impact, safe and reduced handling of chemicals or chemical-free extraction, and protection of water supplies. 11 2022 MISSION REPORT
AT A GLANCE CONSCIENTIOUS PACKAGING We design our packaging with resource conservation in mind. For our iconic wood boxes, we use Forest Stewardship Council (FSC) materials that promote zero deforestation, a fair wage and work environment, biodiversity preservation, and local community rights. Our fine jewelry box is designed to be repurposed to carry jewelry pieces when traveling. Our paperboard packaging is 100% FSC Recycled from pre- and post-consumer content, which supports a circular economy and provides customers with recyclable packaging that can take another turn in its life cycle. 12 2022 MISSION REPORT
AT A GLANCE Responsible Sourcing BRILLIANT EARTH We support fair trade in artisanal mining, community development, human rights protection and child labor prevention, education and training, and environmental restoration such as rehabilitating land FOUNDATION that has been destroyed by unregulated mining. Social Impact Since our founding in 2005, compassion has been We seek to make an impact in both our supply chain and our central to our Company, and we established the communities. Our social impact efforts are directed toward Brilliant Earth Foundation to further our Mission. awareness, social justice, women’s empowerment, gender inclusivity, LGBTQIA+ equality, diversity, and local engagement. Climate Action We are committed to approaching business sustainably and to achieving our business goals while also preserving the planet. Through climate action, we seek to reduce our own carbon footprint and leverage our platform to advocate for environmental protection. *TheBrilliantEarthFoundationisacorporateadvisedfundwithSiliconValleyCommunityFoundation. 13 2022 MISSION REPORT
AT A GLANCE FOSTERING DIVERSITY, EQUITY & INCLUSION We are committed to creating a diverse, equitable, and inclusive workplace that celebrates the unique differences and perspectives of our customers and employees. Designing an Inclusive Experience DEI at Brilliant Earth We want our customers to feel respected, welcomed, and We know that diversity makes our Company better. That’s why delighted by their experience with us – whether during a we celebrate the diversity represented in our leadership and showroom visit or shopping online. employees. We are proud of the number of our people who identify as Black, Indigenous, and People of Color (BIPOC) and Something for Everyone that a majority of staff, people managers, directors, executives, We know that each one of our customers is as unique as and Board members identify as women. the pieces we create. We developed one of the industry’s Inclusive Sizing first gender-neutral collections, the Mx Collection, because offering inclusive jewelry is part of our Mission to inspire a As part of our Mission, we began offering extended sizing at no more compassionate jewelry industry. additional cost within our Rings for Everyone assortment. We are proud to be one of the only jewelry brands to offer this inclusive sizing approach. 14 2022 MISSION REPORT
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AT A GLANCE PROGRESS TO CARBON NEUTRALITY Greenhouse Gas Accounting Supporting a Clean Energy Transition Since 2018, we have been calculating greenhouse gas (GHG) We are committed to reducing our carbon footprint and GHG emissions from our corporate and showroom energy use, emissions and have displaced our operational emissions since packaging, shipping from supplier through to customer, 2018. To support the global renewable energy transition, this employee business travel, and employee commuting. This year we purchased Green-e certified Renewable Energy Credits year, we enhanced our data collection to include operational (RECs) for our corporate electricity use. waste and fuel- and energy-related activities using emissions factors from the Environmental Protection Agency (EPA), and For all other corporate emissions, we purchased Verified we have more accurately estimated emissions from purchased Emissions Reductions (VERs) in the Sky Wind Project in energy and employee business travel. These efforts have Maharashtra, India, regionally located near the majority of ensured greater accuracy as we align to the Greenhouse our manufacturers. This project displaces GHG emissions from Gas Protocol for all categories. the "dirty grid" and produces energy equivalent to that used by approximately 14,000 US homes for 1 year. The project Leading the Way on Scope 3 and the carbon emissions reductions have been validated by the Verified Carbon Standard. We are actively working with our manufacturers to implement sustainable production solutions, such as energy efficient facilities and renewable energy. 15 2022 MISSION REPORT
AT A GLANCE TRANSPARENCY SUSTAINABILITY COMPASSION INCLUSION GOVERNANCE ESG GOALS APPENDIX CONTENTS TRANSPARENT & TRACEABLE Just as we seek to increase transparency in jewelry supply chains, we also prioritize transparency throughout our Company. That means focusing on ethical business practices and governance, utilizing environmentally and socially responsible sourcing practices, and proactively communicating our approach to our stakeholders.
AT A GLANCE TRANSPARENCY SUSTAINABILITY COMPASSION INCLUSION GOVERNANCE ESG GOALS APPENDIX CONTENTS TRANSPARENCY We believe that demonstrating transparency and enforcing rigorous protocols throughout our supply chain and business activities are essential to driving change in our industry. Some of the ways in which we embed transparency in our work include: Following internationally accepted disclosure frameworks and standards while implementing thorough internal quality controls and reporting on our impacts and progress annually. Collaborating with and learning from others in our industry to amplify our impact. We engage with initiatives led by the Jewelers Vigilance Committee (JVC), Diamonds Do Good, Sedex, and other organizations committed to transparency in our industry. Establishing and developing strong governance practices, policies, and procedures that lay the foundation for how we manage environmental, social, and governance (ESG) including how our Board and leadership oversee it. Learn more about how we’ve built a strong foundation for ESG governance and oversight by reading the Governance section. 17 2022 MISSION REPORT
AT A GLANCE TRANSPARENCY SUSTAINABILITY COMPASSION INCLUSION GOVERNANCE ESG GOALS APPENDIX CONTENTS SUPPLIER SUPPLIER ONBOARDING DILIGENCE REQUIREMENTS 06 Independent Social Compliance Monitoring Diamond and jewelry suppliers provide Our natural and lab grown diamond, colored proof of one of the following: gemstone, and jewelry suppliers are subject to Responsible Jewellery Council a diligent vetting process. (RJC) certification DTC Best Practice Principles (BPP) Assurance Programme We go beyond industry norms by requiring Forevermark Management System suppliers to adhere to our sourcing and Certification Assessment Report compliance standards. 02 Affidavit of Management Systems 04 Know Your Customer Association of Professional Social and Material Tracking Supplier is vetted and cleared against Compliance Auditors (APSCA) Supplier commits to maintaining a government lists of denied and Social Compliance Audit Once we start working with a supplier, we Brilliant Earth-approved supply chain. sanctioned individuals and companies. Sustainability Rated Diamond (SCS-007) track its performance and adherence to our requirements through regular reviews. Find out more about our supplier onboarding requirements in the GRI Content Index. 01 Supplier Sourcing Model 03 Anti-Money Laundering Agreement 05 Supplier Code of Conduct Supplier provides business model and Supplier confirms its compliance with: Supplier commits to our Supplier supply chain information. Vendor Identification Requirements Code of Conduct, including: Supplier demonstrates documented Anti-Money Laundering Human rights product or material origins from (AML) Business Transaction Responsible labor practices Brilliant Earth-approved sources. Compliance Agreement Community development Anti-Corruption and Foreign Environmental practices Corrupt Practices Act (FCPA) Compliance Agreement 18 2022 MISSION REPORT
AT A GLANCE TRANSPARENCY SUSTAINABILITY COMPASSION INCLUSION GOVERNANCE ESG GOALS APPENDIX CONTENTS PROVIDING SAFE Social Compliance Audits in 2022 PLACES TO WORK Mutual Recognition of RJC Certification Audit Protocols DTC Best Practice Principles (BPP) Assurance Programme Forevermark Management System Certification Assessment Report Sedex Members Ethical Trade Audit (SMETA) To verify safe working conditions where our products are APSCA Social Compliance Audit being manufactured, Brilliant Earth requires suppliers to Sustainability Rated Diamonds (SCS-007) comply with our Supplier Code of Conduct. Tier 1 93% of our Tier 1 natural diamond suppliers were audited for alignment to Natural Diamond Suppliers one or more of these audit protocols. Responsible Manufacturing and Safe Working Conditions Tier 2 Our Supplier Code of Conduct states that suppliers must use fair and Natural Diamond Cutting 96% of our Tier 2 natural diamond manufacturers were audited for alignment and Polishing Manufacturers to one or more of these audit protocols. responsible labor practices, provide a healthy and safe working environment, are evaluated for their investments in local community development and environmental protection, and more. Tier 1 Tier 1 comprises mainly of US sales offices with no manufacturing on-site and Lab Diamond Suppliers therefore low risk for workplace safety issues. We monitor suppliers’ manufacturing facilities using a combination of independent social compliance audit standards, otherwise known as Tier 2 mutual recognition, to evaluate workplace safety and compliance with our Lab Diamond Cutting and 92% of our Tier 2 lab diamond manufacturers were audited for alignment to Supplier Code of Conduct. Read more in the GRI Content Index. Polishing Manufacturers one or more of these audit protocols. Tier 1 86% of our Tier 1 jewelry suppliers were audited for alignment to one or more Jewelry Suppliers of these audit protocols. Tier 2 89% of our Tier 2 jewelry manufacturers were audited for alignment to one or Jewelry Manufacturers more of these audit protocols. 19 2022 MISSION REPORT
AT A GLANCE TRANSPARENCY SUSTAINABILITY COMPASSION INCLUSION GOVERNANCE ESG GOALS APPENDIX CONTENTS TRACEABILITY Natural Diamond Origins Monitoring Natural Diamond Suppliers Lab Grown Diamonds Brilliant Earth goes above and beyond current industry Our suppliers must adhere to our robust Chain of Custody We were one of the first jewelers to offer lab grown diamonds, standards to offer Beyond Conflict Free™ diamonds that have Protocol for their diamonds and be able to track and segregate which we have done since 2012. These diamonds are created been selected for their ethical and environmentally responsible diamonds by origin to meet our Beyond Conflict Free™ in highly controlled laboratory environments using advanced origins. Jewelers that offer "conflict free" diamonds limit standard. We regularly evaluate natural diamonds suppliers’ technology that replicates the conditions under which diamonds themselves to the Kimberley Process definition, which narrowly compliance to ensure they are sourcing diamonds that develop in nature. defines conflict diamonds as rough diamonds used to finance originate from our approved mines, which follow internationally wars against governments. recognized labor, trade, and environmental standards. We These diamonds have the same physical, chemical, and optical continuously refine these review processes with our partners to characteristics as natural diamonds and exhibit the same fire, We source our natural diamonds from approved mines in improve transparency and traceability in our supply chain. scintillation, and sparkle. Lab grown diamonds provide a Botswana, Namibia, Lesotho, South Africa, and Canada mining-free alternative to natural diamonds. with strong social and environmental governance practices, Promoting Traceability with Blockchain in countries ranked low or moderate risk according to the Monitoring Lab Grown Diamond Suppliers Gemstones and Jewellery Community Platform Index for We were one of the first jewelers to deploy blockchain Conflict-Affected and High-Risk Areas. Our ongoing evaluations technology at scale. In partnership with a leading blockchain We hold our lab diamond suppliers to the same high ethical of mine operations include environmental and social risks, technology enterprise, we provide the customer with a digital standards as our natural diamond suppliers. Like all suppliers, international certifications, in-country supply chain risks, asset with detailed information about their diamond’s origin and they must agree to our Supplier Code of Conduct and regular and geopolitical and environmental issues related to natural journey. This is one more way we’re promoting transparency reviews of their manufacturers to ensure compliance with our diamond supply chains. and responsibility and defining next-generation standards in standards. As members of Sedex since 2021, we are leading the jewelry industry. the industry – which currently lacks a standard for safe working Selecting Natural Diamond Suppliers conditions at lab diamond cutting and polishing manufacturers – by using the Sedex Members Ethical Trade Audit (SMETA) to Our suppliers must have systems for sourcing natural diamonds LESS THAN 1% of natural diamond verify workplace safety at our lab diamond manufacturers. from Brilliant Earth-approved mines in specific countries and demonstrate that they comply with our origin requirements. suppliers worldwide meet our standards 20 2022 MISSION REPORT
AT A GLANCE TRANSPARENCY SUSTAINABILITY COMPASSION INCLUSION GOVERNANCE ESG GOALS APPENDIX CONTENTS GEMSTONES We strive to offer ethically mined gemstones sourced from select origins around the world with developed environmental and mining regulations and enforcement of safe working conditions. The common obstacles of traceability in small-scale mining OUR GEMSTONES still exist in gemstones, making it challenging to trace AND THEIR SELECT ORIGINS some gemstone origins and track the conditions under which they were mined. We partner with our long-term SAPPHIRES RUBIES GARNET, CITRINE, gemstone suppliers to improve traceability. We require them Sri Lanka Greenland AND TOURMALINE to focus their supply chain on select origins where they Colors include royal blue, teals, purples, Rubies meet high standards for human Kenya and Tanzania greens, pinks, yellows, and white. Special rights, labor, environmental protection, Moyo Gems is an ethical gemstone can demonstrate traceability, have close relationships with focus on the rehabilitation of mining sites. and mining. Mine-to-market transparency collaboration that empowers female artisanal their mining sources, and therefore can push for additional Australia for each gemstone. miners through safer work environments, visibility and transparency into their supply chains. better mining practices, and improved Known for a broad spectrum of blues, teals, EMERALDS equity in fair trade markets. greens, and yellows. Collaboration between the government and mining sector on Zambia RHODOLITE, TOURMALINE, environmental protection of Indigenous land. Dark green, but can also have a dark bluish AND AQUAMARINE Montana, USA tone and other beautiful hues. Zambia’s Mines Recognized for stone traceability and colors and Minerals Development Act includes Kenya, Malawi, and Zambia protections for environmental obligations Virtu Gem keeps mining, trading, and ranging from teal to dark blues, green, yellow, and occupational health and safety. cutting and polishing in the country of and more. Sustainable and environmentally origin to support local economies at fair trade respectful mining practices. prices. This localizes the economic benefits while integrating and empowering people at every step of the process. 21 2022 MISSION REPORT
AT A GLANCE TRANSPARENCY SUSTAINABILITY COMPASSION INCLUSION GOVERNANCE ESG GOALS APPENDIX CONTENTSCONTENTS KEEPING IT SUSTAINABLE We take action to reduce our environmental footprint and keep our jewelry in a circular economy. Reducing our environmental footprint and minimizing the climate and environmental impacts along our value chain are core to who we are. From our Board and leadership, who are responsible for overseeing our ESG Goals and performance, to all our team members, everyone at Brilliant Earth understands that they have a role in climate action. 22 2022 MISSION REPORT
AT A GLANCE TRANSPARENCY SUSTAINABILITY COMPASSION INCLUSION GOVERNANCE ESG GOALS APPENDIX CONTENTS CIRCULARITY Sustainable IN PRACTICE Production A circular product incorporates responsible Brilliant Earth Responsibly Sourced Cutting & Polishing Diamonds & Gemstones Manufacturers raw materials, quality craftsmanship, enduring style, recovery of materials, and measuring and reducing corporate and supply chain emissions. We go beyond industry standards when sourcing our raw and recycled materials. We obsess over Designed to wearability, quality, and durability to ensure the Last a Lifetime longevity of our products. It’s all backed by our free lifetime warranty against manufacturing Lifetime Warranty Recycled Diamonds Recycling Customer Recycled Precious Refiners defects: when it’s time for a jewelry piece to take Jewelry Metals a second turn in its life cycle, we offer customers opportunities to recycle previously used jewelry. Customers Jewelry Manufacturers Brilliant Earth Supporting Clean Green Building Reducing Waste Energy Standards 23 2022 MISSION REPORT
AT A GLANCE TRANSPARENCY SUSTAINABILITY COMPASSION INCLUSION GOVERNANCE ESG GOALS APPENDIX CONTENTS QUALITY & CRAFTSMANSHIP Sustainability is worked into all phases of the development of our pieces. Designed to Last a Lifetime We incorporate sustainability principles into the design of our pieces from initial product design and ideation, to customer feedback and research, to product marketing and development. We work hard to design beautiful products that are sustainable today, tomorrow, and always. Raw Material Selection We go above and beyond industry social and environmental standards when choosing raw materials. We selectively source our raw materials to reduce the environmental impacts associated with mining and extraction. This includes Beyond Conflict Free™ natural diamonds, lab diamonds verified for safe and healthy working conditions, certified recycled precious metals, Fairmined gold, and colored gemstones sourced from countries vetted for strong social and environmental practices. Learn more about our raw material standards in the Transparency section of this Report. Responsible Manufacturing and Renewable Energy In 2022, we conducted renewable energy verifications of natural and lab diamond suppliers. The cutting and polishing manufacturers that have transitioned to renewable energy or participate in carbon offsetting are featured in our Truly Brilliant™ collection, expertly curated for beauty and verified sustainable sourcing. 24 2022 MISSION REPORT
AT A GLANCE TRANSPARENCY SUSTAINABILITY COMPASSION INCLUSION GOVERNANCE ESG GOALS APPENDIX CONTENTS Reducing Waste We are committed to reducing waste wherever possible – whether in our packaging, in office supplies for our showrooms, or by increasing our recycling efforts. Some of the steps we have taken to reduce waste across our operations are through FSC-certified customer packaging and the elimination of single-use tableware in our new showrooms and distribution center. Green Building Standards We reevaluated the design of our new showrooms to minimize their environmental footprint through an analysis of the current lighting power density and building materials. Some of the ways we will reduce the impact of showrooms constructed in 2023 are by reducing energy use by as much as 30% through fewer fixtures and reduced wattage, and substituting most commonly used construction materials with lower embodied carbon alternatives. Supporting a Clean Energy Transition Since 2018, we have been calculating and displacing greenhouse ESG Goal - Completed gas (GHG) emissions from our corporate and showroom energy use, We met our goal to, establish and implement guidelines for packaging, shipping from supplier through to customer, employee the energy, pollution, water, and waste impacts of all new business travel, and employee commuting. To support the global construction, expansion, and renovation of office, retail, 30% less renewable energy transition, this year we purchased Green-e certified and distribution in line with green building standards. energy for lighting Renewable Energy Credits (RECs) for our corporate electricity use. new showrooms For all other corporate emissions, we purchased Verified Emissions Update on Goal Performance Reductions (VERs) in the Sky Wind Project in Maharashtra, India, regionally located near the majority of our manufacturers. 25 2022 MISSION REPORT
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AT A GLANCE TRANSPARENCY SUSTAINABILITY COMPASSION INCLUSION GOVERNANCE ESG GOALS APPENDIX CONTENTS JEWELRY FOR LIFE We promote sustainable consumption by creating pieces for today, tomorrow, and always by being there when our customers’ needs change. Lifetime Warranty Recycling Customer Jewelry Our products are backed by our free lifetime warranty, To facilitate a circular economy and encourage the reuse and we use on-the-ground data and feedback from of materials, we recycle gold or platinum jewelry a customer no customers, such as reasons for a return and customer longer wears for credit toward a future purchase. reviews, to identify areas of opportunity to improve and refine our products. These findings inform our redesign Keep It Circular process as well as design standards for future products. Requiring recycled precious metals in all our cast products Not only does this improve customer satisfaction, but it supports a circular economy while reducing our social also means less waste and emissions and minimizes the and environmental footprint. Our precious metals are impact of returns and repairs. sourced from certified responsible refiners that also offer Lifetime Diamond Upgrade certified recycled metals. Read more in the GRI Content Index. Brilliant Earth proudly offers customers a free lifetime We are proud to offer post-consumer recycled diamonds diamond upgrade for our natural and lab grown that were previously mined, cut, polished, and owned. diamonds. If and when it’s time for a jewelry piece to These diamonds require no new mining, making them an take a second turn in its life cycle, we proudly offer environmentally and socially responsible choice. customers a natural or lab diamond upgrade for a credit on a future purchase. 26 2022 MISSION REPORT
AT A GLANCE TRANSPARENCY SUSTAINABILITY COMPASSION INCLUSION GOVERNANCE ESG GOALS APPENDIX CONTENTS A COMPASSIONATE APPROACH At Brilliant Earth, we are committed to giving back, from supporting the communities where our showrooms and headquarters are located, through employee volunteering, to funding environmental and social programs in gold and gemstone supply chains. Our funding has been especially impactful in gold and gemstone mining communities negatively impacted by harmful mining practices. 27 2022 MISSION REPORT
AT A GLANCE TRANSPARENCY SUSTAINABILITY COMPASSION INCLUSION GOVERNANCE ESG GOALS APPENDIX CONTENTS BRILLIANT EARTH FOUNDATION We continue to grow our giving and impact We established the Brilliant Earth Foundation in 2021 to amplify and Responsible Sourcing Initiatives formalize our commitment to giving back, and to provide long-term Grant Partners support to partners who share our Mission. Since its founding, we have more than tripled our donations, giving over $518,000 in 2022. Responsible Sourcing We support fair trade in artisanal mining, community development, human rights protection and child labor prevention, education and training, and environmental restoration such as rehabilitating land that has been destroyed by unregulated mining. Social Impact 2020 2021 2022 Social Impact Initiatives We seek to make an impact in both gold and gemstone mining supply chains and our Causes important to us communities. Our social impact efforts are directed toward awareness, social justice,women’s Climate Action empowerment, gender inclusivity, LGBTQIA+ equality, diversity, and local engagement. Responsible Sourcing Climate Action Initiatives Social Impact RECs and VERs Climate Action We are committed to approaching business sustainably and to achieving our business ESG Goal - Completed ESG Goal - Completed goals without compromising the ability of future generations to meet their needs. Through In 2022 and moving forward, make In 2022 and moving forward, climate action, we seek to reduce our own carbon footprint and leverage our platform to further commitments to restore contribute to the development of advocate for environmental protection. Learn more about our commitment to climate habitats where mining and other local livelihoods for mining and action under Sustainability. extraction activities have occurred. farming communities that respect the balance of natural ecosystems. Update on Goal Performance *TheBrilliantEarthFoundationisacorporateadvisedfundwithSiliconValleyCommunityFoundation. Update on Goal Performance 28 2022 MISSION REPORT
AT A GLANCE TRANSPARENCY SUSTAINABILITY COMPASSION INCLUSION GOVERNANCE ESG GOALS APPENDIX CONTENTS STORIES OF COMPASSION One of the best ways to learn about our work with our grant partners is to read their stories. See some of the ways these organizations are working to improve diamond, colored gemstone, and gold mining communities – and how they benefit from their partnerships with Brilliant Earth. 29 2022 MISSION REPORT
AT A GLANCE TRANSPARENCY SUSTAINABILITY COMPASSION INCLUSION GOVERNANCE ESG GOALS APPENDIX CONTENTS Photocredit:Resolve Photocredit:MichaelGoima Photocredit:ARM Restoring Abandoned Diamond Mines Fair Market Prices for Female Gem Miners Mercury-Free Gold Mining DDI@Resolve Pact-Moyo Pure Earth and ARM We have worked with DDI@Resolve for over 14 years. In 2021, Moyo, the word for "heart" in Kiswahili, reflects Moyo Gems’ Our partnership with Pure Earth began in 2017. In 2022, we we began a new 4-year $100,000 grant to DDI@Resolve’s focus on being a responsible miner-to-market gemstone teamed up with Pure Earth and the Alliance for Responsible Peace Diamonds Restoration Initiative, which is aimed at collaboration in East Africa. The Moyo Gems program Mining (ARM) on a new 3-year $300,000 grant to create a restoring abandoned diamond mining sites in Sierra Leone. educates and trains women artisanal gem miners to sell their program in the Amazon to reduce global mercury emissions. Between 1991 and 2002, diamond mining fueled a civil war, colored gemstones at Market Days directly to international The Green Mining Project aims to train gold miners in Madre destabilizing the country and leaving behind abandoned mining gem traders for fair market prices. This work is made possible de Dios, Peru, in mercury-free mining techniques and certify pits that pose physical risks and limit the amount of arable land. through a unique partnership between the Tanzania Women them as the first Fairmined Ecological Gold miners In 2022, the Peace Diamonds initiative reported that 29 mining Miners Association (TAWOMA), the Association for Women in in the region. sites had been rehabilitated in the Kono District of Sierra Leone. Energy and Extractives in Kenya (AWEIK), the global nonprofit organization Pact, international gem traders, and brands The Green Mining Project promotes the implementation Some 240 young people from 30 households are cultivating like Brilliant Earth. of mercury-free technologies, mitigating the negative impacts crops on the reclaimed land. About 714 people, the majority of this toxic chemical on the environment and people’s of whom are women and children, will benefit directly from In 2022, we began a 2-year $390,000 grant to Pact to help health and restoring the damage done to Amazon rainforests post-reclamation land reuse through crop cultivation, and more Moyo Gems expand from Tanzania into Kenya, hire a full-time degraded by gold mining and mercury use. The Fairmined than 5,000 people will benefit from the post-reclamation land regional program manager, and fund financial literacy trainings certification and Fairmined premium incentivizes miners to reuse for all agricultural activities. that help women build secondary sources of income. Since maintain mercury-free mining practices. the grant initiation, Pact has recruited 241 miners in Kenya Learn more about DDI@Resolve and 61% are women. Learn more about Pure Earth and Fairmined gold Learn more about Pact-Moyo 30 2022 MISSION REPORT
AT A GLANCE TRANSPARENCY SUSTAINABILITY COMPASSION INCLUSION GOVERNANCE ESG GOALS APPENDIX CONTENTS MAKING A Organizations and causes we support SOCIAL IMPACT We make direct donations to causes important to us and design jewelry that expresses our commitments to environmental conservation, social justice, women’s empowerment, and LGBTQIA+ equality, among other causes that align with our values. NAACP Legal Defense Fund Food banks Feeding America Keep Our Clinics Abortion Care Network IMAGE Rainforest Alliance Preservation of America’s International Rescue Fairmined national parks Committee for humanitarian assistance in Ukraine 31 2022 MISSION REPORT
AT A GLANCE TRANSPARENCY SUSTAINABILITY COMPASSION INCLUSION GOVERNANCE ESG GOALS APPENDIX CONTENTS GIVING BACK IN OUR COMMUNITIES Our employees have a Mission-oriented mindset and are eager to give back to the communities in which they live and work. For every new showroom we opened in 2022, we set the tone with a corporate donation to a food bank within the community, chosen by the local employees. Employees also donate their time by volunteering where our showrooms and offices are located. We’re proud of our employees. This year, they volunteered at 26 organizations, including Food Bank of the Rockies, Empower Youth Network, Hands On Atlanta, MedShare, the San VolunteeringwithSanFranciscoFirefightersattheirannualtoydrive. Francisco-Marin Food Bank, and the Periwinkle Foundation. All told, our employees donated 521 volunteer hours. Columbus, Ohio Showroom, joined Make-A-Wish and Jewelers for Children to show compassion to a local student. To celebrate her wish, 14-year-old Jocelyn received a VIP experience at our Columbus showroom a mock engagement ring appointment, a beautiful necklace, and a life-size ESG Goal - Completed cutout of Harry Styles. The Brilliant Earth team was honored to help make Jocelyn's wish one to remember. Double employee volunteer hours in 2022. Update on Goal Performance 32 2022 MISSION REPORT
AT A GLANCE TRANSPARENCY SUSTAINABILITY COMPASSION INCLINCLUSIONUSION GOVERNANCE ESG GOALS APPENDIX CONTENTS DIVERSITY, EQUITY & INCLUSION Fostering inclusivity and belonging for our people and customers is one of the guiding pillars of our Mission. We have specific ESG Goals around diversity, equity, inclusion, and belonging, and these goals are also part of our Company strategy, culture, and performance monitoring. Our leadership is deeply committed to championing diversity and belonging and to continuing to build on the progress we’ve made. 33 2022 MISSION REPORT
AT A GLANCE TRANSPARENCY SUSTAINABILITY COMPASSION INCLINCLUSIONUSION GOVERNANCE ESG GOALS APPENDIX CONTENTS OUR PILLARS OF CULTURE The Brilliant Earth culture is key to our success and helps us attract and retain team members. We collaborate, celebrate, Commitment to the Customer Partnership and Positivity and promote based on our Pillars of Culture. Providing an exceptional customer Foster a community of collaboration, experience is always our top priority. inclusivity, respect, and encouragement. Celebrate each other’s differences and each other’s victories, big and small. Bias Toward Action Embrace Growth and Change When you see a need, step up rather Be a champion of continuous improvement. than standing by. Discuss, test efficiently, Look for new opportunities to support and take action. business goals. Mission Mindset Ownership Be an educated, passionate advocate Be accountable for your actions, take of our Mission in your role and beyond. pride in your work, and inspire others with your example. 34 2022 MISSION REPORT
AT A GLANCE TRANSPARENCY SUSTAINABILITY COMPASSION INCLINCLUSIONUSION GOVERNANCE ESG GOALS APPENDIX CONTENTS INCLUSIVE PRODUCTS & CUSTOMER EXPERIENCE Our commitment to diversity, equity, and inclusion has led us to design products and shopping experiences that celebrate these values. Our philosophy is to treat our customers to a relaxed yet luxurious experience in our showrooms. Just as each of our diamonds and gemstones is unique, we seek to give each customer an exceptional experience tailored to their individuality that results in them finding that special piece of jewelry. We began offering free extended sizing at no additional cost within our Rings for Everyone assortment. We are in the process of rolling this out across our entire ring collection. We recently updated our sample size based upon feedback from our customers. We greatly expanded our product offerings with designs for all genders. We offer a virtual try-on experience with technology that allows anyone to visualize jewelry on their unique skin tones. ESG Goal - Completed In 2022 and moving forward, continue to integrate and evaluate inclusive practices in marketing activities to reflect the diversity of our consumer base by expanding and improving diverse representation. Update on Goal Performance 35 2022 MISSION REPORT
AT A GLANCE TRANSPARENCY SUSTAINABILITY COMPASSION INCLINCLUSIONUSION GOVERNANCE ESG GOALS APPENDIX CONTENTS CHAMPIONING We are proud of our diverse workforce representation, EMPLOYEE BELONGING which is also reflected in our leadership. FEMALE-LED, FEMALE MAJORITY We celebrate the diversity within our Company and know we’re a better business because of it. Female 4 of 7 Board of CEO Directors Equitable and Inclusive Hiring We also know that maintaining and expanding this diversity requires ongoing and continual efforts. We are committed to these efforts and to fostering an inclusive workplace and a more 76% 69% 59% diverse jewelry industry. Our executive team closely monitors monthly reports and survey Employees People Directors and responses on diversity, employee wellness, and belonging at Brilliant Earth and incorporates Managers Above these findings into their strategy and decision-making. We are proud to have increased the number of people who self report as female and/or as BIPOC across all levels of the organization in 2022. We strengthened and grew our inclusive PEOPLE WHO SELF REPORT AS hiring practices through: BLACK, INDIGENOUS, AND PEOPLE OF COLOR Evaluating our job descriptions to ensure language choices are inclusive to attract diverse talent. Including our EEO statement and applicant accommodation process in job descriptions. 46% 32% 41% Anti-bias training for our interviewers and Talent Acquisition Team. Employees People Directors and Managers Above Posted employment opportunities with historically Black colleges and universities (HBCUs) and other organizations serving diverse communities. 3% increase from last year Limiting positions that require a college degree to senior leadership and technical positions. 5% increase 5% increase from last year from last year 36 2022 MISSION REPORT
AT A GLANCE TRANSPARENCY SUSTAINABILITY COMPASSION INCLINCLUSIONUSION GOVERNANCE ESG GOALS APPENDIX CONTENTS DIVERSITY, INCLUSION CELEBRATING WOMEN’S & BELONGING COUNCIL EQUALITY MONTH Our employees lead our internal Diversity, Inclusion and Belonging In August, we celebrated Women’s Equality Month (DIB) Council, launched in 2020. The council is made up of employees by honoring women at Brilliant Earth who chose across departments who are interested in advancing diversity, inclusion, to mentor others. equity, and belonging in our workplace, products, and operations. Many important initiatives have come from the council, such as extended ring sizing at no additional cost. "Diversity, equity, and inclusion mean to me that people of "I didn’t truly realize the impact of different backgrounds, races, ethnicity, sexual orientation, having women mentors and leaders learning styles, disabilities, and any other differences are until I joined Brilliant Earth. I am very treated fairly and given equal opportunities. This is important proud to work for a company that to me because as a Black woman, I have not always received fair treatment. However, at Brilliant Earth, I have been given creates spaces not only for women the opportunity to grow and become a leader." but for a variety of other identities." Briana Baker Kylie Topp Customer Experience Regional Manager & Talent Acquisition Manager Diversity, Inclusion and Belonging Council Member 37 2022 MISSION REPORT
AT A GLANCE TRANSPARENCY SUSTAINABILITY COMPASSION INCLINCLUSIONUSION GOVERNANCE ESG GOALS APPENDIX CONTENTS BUILDING OUR EMPLOYEE COMMUNITY We hired many new team members in 2022, and as we grow our Company, taking care of and investing in our employees is an important part of our strategy. Be Brilliant, Be Well Our employee wellness program, Be Brilliant, Be Well, focuses on four core areas: body, mind, life, and community. Our monthly newsletter shares resources, events, and other key topics that correspond to each quarter’s theme. In 2022, we offered access to a mental health app, free of cost to all employees. The app provides behavioral health coaching, a self-care library, 24/7 mental health support and coaching, and video-based therapy and psychiatry with licensed professionals. 38 2022 MISSION REPORT
AT A GLANCE TRANSPARENCY SUSTAINABILITY COMPASSION INCLINCLUSIONUSION GOVERNANCE ESG GOALS APPENDIX CONTENTS INVESTING IN OUR TEAM Our team members are our most valuable asset, and we are committed to providing an inclusive, supportive workplace where employees can be their authentic selves and focus on achieving their professional and personal goals. We provide regular training, ongoing learning opportunities, workshops, and incentive award plans for our team members. "The Brilliant Earth training program is unlike any I have ever experienced! From day one, I felt so supported by the training team, my colleagues, and Company leadership." Conrad Fox Customer Experience Manager 39 2022 MISSION REPORT
AT A GLANCE TRANSPARENCY SUSTAINABILITY COMPASSION INCLINCLUSIONUSION GOVERNANCE ESG GOALS APPENDIX CONTENTS EMPLOYEE ENGAGEMENT Our team members are the most important part of Brilliant Earth. Simply put, they drive our success. To help us build and maintain an exceptional experience for them, we conduct an annual anonymous engagement survey so they can provide direct and confidential feedback we can act on. These findings are incorporated into our goals, strategy, and action plans for people managers and leadership. From our surveys, several values and beliefs are consistently shared by employees. 95% 87% 89% "I share the values of the "I feel like I am "My manager genuinely Pillars of Culture" part of a team" cares about my well-being" ESG Goal - Completed Maintain an employee engagement score of at least 75%. Update on Goal Performance 40 2022 MISSION REPORT
AT A GLANCE TRANSPARENCY SUSTAINABILITY COMPASSION INCLINCLUSIONUSION GOVERNANCE ESG GOALS APPENDIX CONTENTS WORKING AT BRILLIANT EARTH Equitable and Inclusive Compensation Strategies Learn more about our employment practices, the generous benefits we offer to employees, We understand that all our team members play a direct and our workplace health and safety practices role in our success, and we are committed to compensation in our GRI disclosures in the appendix and by strategies and benefits that are equitable and inclusive. visiting the Careers page on our website. We offer competitive and comprehensive compensation packages, and we invest in our talent with Equity and Incentive Award Plans. Shortly after our September 2021 initial public offering, we made broad-based equity awards so that employees had opportunities to become shareholders in the Company. Our Awards We are proud to be recognized as one of Built In’s Best Atlanta | Austin | Boston | Chicago | Colorado | Dallas Places to Work in more than 10 tech hubs, and as a VIBE Houston | Los Angeles | Miami | San Diego Best Medium Sized Company based on our compensation, San Francisco | Seattle | Washington, DC benefits, culture programs, and employee testimonials. ESG Goal - Completed Annually assess our compensation packages to continue to offer competitive and VIBE Best Medium Sized Company for comprehensive packages that are also Financial and Retirement Benefits equitable and inclusive. VIBE Best Medium Sized Company for Update on Goal Performance Professional Development Benefits 41 2022 MISSION REPORT
AT A GLANCE TRANSPARENCY SUSTAINABILITY COMPASSION INCLUSION GOVERNANCE ESG GOALS APPENDIX CONTENTS GOVERNANCE Since our founding, sound ESG practices have been fundamental in our business, operations, and supply chain partnerships. Board Oversight of Sustainability Board Diversity Our Board of Directors sets high standards for the Company’s We’re proud to have a Board with rich public company employees, officers, and directors while creating value for experience and a deep commitment to and knowledge of our shareholders. Our commitment to sustainability only sustainability. The Board’s diversity reflects the diversity of our strengthened as we went public in 2021 and continued to team members, and most of our Board is female. improve the transparency of our sustainability efforts. Our Board comprises seven members who are committed to Executive Compensation advancing sustainability at Brilliant Earth and playing an A portion of our executives’ bonuses is tied to the Company’s active role in providing strategic oversight and review. performance regarding our ESG Goals so that all executives are Brilliant Earth Board Structure & ESG Oversight working toward the same targets. Audit Committee Risk Management Compensation Committee (Oversight of ESG topics Our Board, executive leadership, officers, and directors are and employee-related matters) constantly monitoring potential risks to our business operations, Nominating & Corporate Governance Committee activities, and supply chain. With our Mission and commitment (Oversight of environmental and governance-related topics) to transparency, traceability, and creating a more socially and environmentally sustainable jewelry industry, ESG topics are a Each committee has its own charter that outlines the natural component of this process. Risks are discussed often and committee’s responsibilities, role, meeting frequency, oversight are categorized by likelihood and severity of impact, with plans of material issues, and other duties. Read the committee put into place to mitigate risks to ensure business continuity. charters on our website. 42 2022 MISSION REPORT
AT A GLANCE TRANSPARENCY SUSTAINABILITY COMPASSION INCLUSION GOVERNANCE ESG GOALS APPENDIX CONTENTS GOVERNANCE Materiality and Stakeholder Engagement 8. Aligning to leading sustainability/ESG standards and and annual reviews of our systems and suppliers. This helps We have worked extensively to identify our key frameworks to better track and report on performance prevent bribery and corruption and ensures that our programs sustainability issues. to key stakeholders. are effective and continually improved upon. Whether we are working with regulators to ensure compliance Our officers, employees, and agents around the world are Our journey to uncovering risks, opportunities, and strategic with various laws; collaborating with our peers, industry commitments unfolded by: associations, or supply chain partners to elevate our vision required to sign and commit to our Anti-Money Laundering for sustainable development; or working with our team to Policy. Employees working in areas that have the potential to 1. Launching a values-based company to provide jewelry that’s implicate money laundering issues are required to complete different in every way – how it’s made, how it’s sold, how it’s implement our strategic efforts, we continuously engage our anti-money laundering training. In 2022, 100% of these sourced and crafted, and how it gives back. stakeholders on key sustainability topics. employees completed the training. 2. Committing to transforming an outdated industry to Doing Business with Ethics achieve the ideals that we were founded on and that We address ethical issues, legal and regulatory compliance, As members of the Jewelers Vigilance Committee (JVC), inform our goals. human rights, health, safety, environmental issues, and diversity, we strive to go beyond basic compliance with anti-money 3. Conducting third-party due diligence assessments across our equity, and inclusion (DEI) in our Code of Business Conduct laundering and anti-corruption rules via continuous education, value chain to help us determine risks, opportunities, and and Ethics, which applies to our directors, officers, and collaboration with business partners, responsible advertising, areas for improvement. employees. We address these topics and more in our Ethical and sound customer relationship management. The JVC has Business Policy, which includes key GRI topics like forced tested and confirmed that our Anti-Money Laundering program 4. Working with peers and industry associations to drive change is appropriate, most recently in 2022. across the supply chain. labor, DEI, and community development and outlines our expectations for employees, suppliers, and third parties. Our Insider-Trading Compliance Policy and our Employee 5. Monitoring and analyzing implementation of strategic pillars Read more in the GRI Content Index. that have guided us since our founding in 2005. Handbook outline the ethical, legal, and other compliance 6. Evaluating management systems to ensure strong policies Anti-Money Laundering, Anti-Corruption, policies in place for employees. Additionally, we require that and processes are in place to operationalize our efforts. employees report any illegal, fraudulent, or unethical behavior. and Ethical Behavior We maintain a third-party-operated whistleblower hotline that 7. Establishing programs – including specialized training, We prohibit money laundering, insider trading, bribery, and employees can use to report unethical behavior through a education, and reviews – to enable success in our teams, from other forms of corruption and unethical behavior, and we variety of methods, including anonymously. associate to executive, and with our supply chain partners. require that employees report any instances they might be aware of. We have robust internal tracking, controls, monitoring, We are proud that we had zero reported incidents of violations of these policies in 2022. 43 2022 MISSION REPORT
AT A GLANCE TRANSPARENCY SUSTAINABILITY COMPASSION INCLUSION GOVERNANCE ESG GOALS APPENDIX CONTENTS GOVERNANCE Financial and Corporate Transparency Privacy and Data Security We regularly file public reports with the US Securities and We value the privacy and security of the data that our Exchange Commission (SEC) that detail our operational employees, customers, and business partners entrust us with. results, risks that could impact the business, and our financial We have robust policies and systems in place to ensure that performance. We publish all our SEC filings and quarterly data is protected and handled with care. Some of the ways performance reports on our website. we protect privacy and data are: Product Responsibility Annual cybersecurity trainings for employees. We take pride in creating beautifully designed, sustainable, Regular phishing tests and trainings for employees. and joyful products for our customers. Our Product Development, Multi-factor authentication for applications and accounts. Merchandising, Sourcing, and Marketing Teams work closely with Investing in and growing our IT team, including key roles our Legal & Compliance team to ensure that our products are focusing on cybersecurity, data and privacy compliance, responsibly designed. We carefully review products, designs, and and legal and regulatory oversight. marketing to avoid intellectual property or trademark conflicts Implementing secure platforms and systems that and to adhere to the Federal Trade Commission’s Green Guides, protect employee emails and customer credit card data which help us ensure that our environmental claims are accurate, and that guard against data breaches, viruses, malware, substantiated, and do not mislead consumers. and other threats. Brilliant Earth's natural and lab diamonds are independently Complying with the Sarbanes-Oxley Act, payment graded for quality characteristics of the 4Cs – cut, color, and clarity card industry requirements, and other legal and in a variety of carat weights. A diamond certificate or grading regulatory requirements. report from an independent gemological lab provides an expert Addressing potential threats and issues before they arise opinion on the quality of each diamond. These include some of by mapping our systems and data and undergoing regular the world’s leading gem-grading labs, such as the Gemological reviews and audits of our practices. Institute of America (GIA), International Gemological Institute (IGI), HRD Antwerp, and Gem Certification & Assurance Lab (GCAL). We had zero known cybersecurity incidents in 2022.
AT A GLANCE TRANSPARENCY SUSTAINABILITY COMPASSION INCLUSION GOVERNANCE ESG GOALS APPENDIX CONTENTS ESG Goals & Performance Goal Year Goal Goal Status 2022 Progress 2023 Ambitions Sustainability 2022 Establish and implement guidelines for the energy, pollution, water, We identified opportunities to implement more environmentally friendly updates focused on operating energy, We will implement in new showrooms starting in 2023. and waste impacts of all new construction, expansion, and renovation embodied carbon, and global warming potential (GWP). We expect that these updates will reflect a 30% of office, retail, and distribution in line with green building standards. reduction in energy use through fewer fixtures and reduced wattage, and reduce GWP of new showrooms and renovations starting in 2023. Reduce the amount of paper-based packaging in our consumer-facing We began the process to reduce the paper content of our 100% FSC Recycled packaging. We will finalize packaging updates and implement boxes while maintaining 100% FSC Recycled content. in showrooms. 2022+ Integrate sustainability into our design and manufacturing processes. We analyzed data on return and repair rates, and redesigned a number of styles based on that data to improve We will redesign styles flagged as 'highest repair' Identify innovations that continue to make our designs and quality, durability, and reduce waste. and monitor other styles to inform design standards manufacturing processes sustainable by reducing material use and key for future products. waste streams in Tier 2 manufacturing locations. Promote circularity and longer use of jewelry through repair, We increased marketing and circularity education for the lifetime warranty, diamond upgrade, and recycled We will establish a baseline for the metal credit program refurbishment, diamond upgrade, metal credit program, and recycled metal credit program. to monitor year-over-year progress of our recycled diamond offerings. metal collection. In addition to our efforts to increase transparency and improve We supported several organizations that advance environmental, political, and social movements that We will focus our efforts and increase our give-back jewelry industry standards, leverage the Brilliant Earth platform to align with our values through the "Brilliant Earth Foundation" and through our Jewelry That Gives Back in environmental advocacy. also advocate for environmental and social protection by supporting collection. In reflecting on the major social events that took place in 2022, such as the invasion of Ukraine relevant causes, events, political and social movements, and and the reproductive justice movement, we have updated this Goal to include social as well as environmental employee education. protection. 2023 Using 2022 as a baseline, measure and publish science-based GHG Since 2018, we have calculated our corporate GHG emissions. In 2022, we enhanced our data collection and Using data from calendar year 2022 as a baseline, emissions reduction targets to corresponding target dates. aligned to the Greenhouse Gas Protocol for all categories. We have updated this Goal and Goal Year to reflect we will set targets and make a Science Based using 2022 as a baseline. Targets commitment. Since 2018, we have offset our emissions from our corporate and In accordance with the Greenhouse Gas Protocol, we made steps toward more accurately quantifying our We will evaluate the availability of emissions data prior to showroom energy use, packaging, shipping, employee travel, and Scope 2 and 3 emissions by engaging with digital service providers and transportation companies, improving 2018 and determine if the data can be accurately used to commuting. In addition, we will neutralize quantifiable pre-2018 data collection for employee travel and commuting, surveying our supplier base for renewable energy use, and displace historical emissions. Scope 1 and 2 emissions. using secondary data to estimate purchased goods and services. To learn more about how we are improving emissions calculations, read Greenhouse Gas Emissions Inventory. 2030 Neutralize Scope 2 and 3 emissions (purchased electricity, We will continue to work with our supplier base to manufacturing, digital communications, B2B and B2C encourage their transition to renewable energy and, where transportation, and employee travel) by engaging key business available select utility providers with renewable energy for partners to implement renewable energy or investments in renewable new and existing showrooms. energy projects. 2025 Eliminate single-use plastics in showrooms and corporate spaces. We eliminated single-use disposable tableware at our new showroom locations and in our distribution center We will work with our suppliers to evaluate how to reuse to reduce waste. and reduce single-use plastic product bags. 45 2022 MISSION REPORT
AT A GLANCE TRANSPARENCY SUSTAINABILITY COMPASSION INCLUSION GOVERNANCE ESG GOALS APPENDIX CONTENTS Goal Year Goal Goal Status 2022 Progress 2023 Ambitions 2025 100% of gold and silver will be sourced from recycled or Fairmined Our annual independent review determined that 98% of our gold and 97% of our silver are We will use the Responsible Minerals Initiative’s sources, with year-over-year increases in the percentage of recycled from recycled sources. Downstream Assessment Program to conduct platinum used in our products. additional verifications on suppliers of gold and silver jewelry, verifying compliance with our Recycled Precious Metals Policy. 2030 Achieve zero waste in showrooms and corporate spaces. We made strides to reduce waste in our showrooms, offices, and distribution center. Learn more here. We will reevaluate sources and measure waste in our showrooms, offices, and distribution center to find ways to reduce. Transparency 2023 Continue to expand use of traceability technology, increasing Blockchain-enabled diamonds accounted for 7%-8% of our natural diamond inventory. We have updated this We will implement a new blockchain solution that will help blockchain diamonds to 20% of our natural diamond inventory. Goal to reflect our focus on blockchain. us reach our goal of 20%. Conduct a life cycle assessment of key raw materials to measure We performed initial GHG estimates of raw materials: natural diamonds, lab diamonds, gold, We will improve our research and data collection of impacts on biodiversity, water, and energy use. silver, and platinum. cradle-to-gate emissions of key raw materials. Support mutual recognition and 100% participation of moderate-to Percentages of suppliers that completed a social compliance audit to an approved independent audit protocol: We will continue to verify the balance of suppliers for high-risk Tier 1 natural, lab and jewelry suppliers are participating in an 93% of Tier 1 natural diamond suppliers compliance with our Supplier Code of Conduct. acceptable standard such as RJC, DTC BPP, or Sedex. 86% of Tier 1 jewelry suppliers *Tier 1 lab suppliers are categorized as low-risk sales offices with no manufacturing on-site. Support mutual recognition and 100% participation of moderate-to Percentages of supplier manufacturers that completed a social compliance audit to an approved independent high-risk Tier 2 natural, lab and jewelry manufacturers are participating audit protocol: in an acceptable standard such as RJC, DTC BPP, or APSCA 96% of Tier 2 natural diamond manufacturers Member Firms. 89% of Tier 2 jewelry manufacturers 92% of Tier 2 lab diamond manufacturers* * In Oct. 2021, we began the process of verifying our lab manufacturers’ compliance with our Supplier Code of Conduct. 2025 Publish key metrics on factory audit findings, including risks identified We have full audit reports from 92% of lab diamond manufacturers. We will require full audit reports from Tier 2 natural and remediation efforts. diamond and jewelry manufacturers. Certify 50% of lab diamond suppliers to an environmental We conducted renewable energy verifications of lab diamond manufacturers that transitioned to renewable We will continue to push suppliers to transition product standard. energy or purchase RECs. These suppliers are featured in our Truly Brilliant™ Collection. to renewable energy sources, and research environmental product standards for lab diamond suppliers that meet our requirements. Compassion 2022 Double employee volunteer hours. We more than doubled our volunteer hours. We will aim for 100% employee participation in volunteering. 2022+ Further commitments to restore habitats where mining and other Through the Brilliant Earth Foundation, we have committed to multiyear grants for programs with a focus on We look forward to seeing the progress of our multiyear extraction activities have occurred. responsible sourcing. Learn more here. grants develop, with a focus on rainforest reforestation and mining pit rehabilitation. 46 2022 MISSION REPORT
AT A GLANCE TRANSPARENCY SUSTAINABILITY COMPASSION INCLUSION GOVERNANCE ESG GOALS APPENDIX CONTENTS Goal Year Goal Goal Status 2022 Progress 2023 Ambitions 2022+ Contribute to the development of local livelihoods for mining and We began a 2-year $390,000 grant with Pact-Moyo to empower female artisanal miners. Learn more here. Pact will strengthen Moyo expansion and a financial farming communities that respect the balance of natural ecosystems. literacy program in Kenya. 2025 Support new Fairmined certifications of ASM gold mines and increase Through Pure Earth and the Alliance for Responsible Mining, we sponsored the Fairmined certification of In addition to monitoring AMATAF’s progress on achieving purchases of Fairmined gold from these mines year-over-year. mining consortium AMATAF in Peru. We increased our Fairmined gold purchases by 27%, from approximately Fairmined certification, we plan to sponsor an additional 470 grams to 600 grams. Learn more here. mine to achieve certification. Inclusion 2022+ Continue to broaden our product offerings to reflect our We are committed to inclusive products. In addition to our gender-neutral rings, we began offering extended We will roll out extended sizing across our entire diverse customer base. sizing within our Rings for Everyone assortment. ring assortment. Identify new opportunities for inclusive designs and collections. Continue to integrate and evaluate inclusive practices in marketing We have always showcased diversity on our website and in our marketing materials. In 2022, we ramped up As we scale our community and influencer outreach, we activities to reflect the diversity of our consumer base by expanding these efforts to better reflect our customers. will continue to prioritize diversity in all of our paid, gifted and improving diverse representation. and organic partnerships, ensuring we amplify diversity and promote equity across all marketing efforts. Maintain an employee engagement score of at least 75%. The overall score on our last engagement survey was 77%. We will maintain and improve the employee engagement score. Annually assess our compensation packages to continue to offer We worked with an independent consultant to analyze and assess our compensation packages for various We will continue to assess and offer competitive competitive and comprehensive packages that are also equitable roles across the Company to ensure compensation equity. We also hired a full-time Compensation Director to and comprehensive packages that are also equitable and inclusive. oversee and ensure equitable compensation going forward. and inclusive. Perform annual surveys to understand the intersectionality of the We survey our team members twice a year to understand the diversity of our employees, what matters most We will survey our employee base, utilizing a new human diversity of our employees. Support the continued growth and to them, and how we might create a more inclusive company. We conducted weekly pulse surveys to better resources information system platform implemented in development of staff to support internal mobility and maintain diverse understand employee engagement and belonging. Our leadership and people managers worked with Human 2022, to better understand the intersectionality of the employee, leadership, and executive representation. Resources to create action plans based on these results. diversity in our workplace. Continue to train, educate, and support all employees in creating and All new employees were required to take training on anti-harassment, discrimination, inclusion, and belonging At the end of 2022, we signed the Open to All pledge. fostering diverse teams through a variety of DEI-focused initiatives in the workplace. At regular intervals throughout the year, we offered additional trainings, workshops, We plan to utilize the resources of this campaign to such as online trainings, guest speakers, employee resource groups resources, and events on diversity, equity, inclusion, and belonging. strengthen our DEI efforts. (ERGs), and other resources. 2023 Identify a focused leader to spearhead and execute the Company’s DEI program and initiatives. 47 2022 MISSION REPORT
