Pandora A/S announced Tuesday that they will no longer be using mined diamonds amid ethical concerns.
The company, who produces the largest amount of jewelry in the world, will now use diamonds made in laboratories, after it said last year that it will stop using newly mined gold and silver.
Pandora, based in Copenhagen, said Tuesday that their first lab-made collection will be released in the U.K. before moving to other markets in 2022.
Alexander Lacik, Pandora’s CEO, said, “For millennials in particular, the awareness of what a lab-created diamond is, is specifically higher than with the older generation, so it’s a matter of education as well. They are more concerned about sustainability aspects.”
Pandora’s lab-made diamonds are grown from carbon with over 60% renewable energy on average, a number that is set to rise to 100% next year.
The Danish company’s decision to stop relying on mined gold and silver last year means its entire production will only use recycled precious metals by 2025, part of a plan to make operations carbon neutral within four years.
Among ethical and sustainable concerns, Pandora also mentioned price as a consideration behind its decision. Lab-made diamonds cost about a third of mined ones, meaning the switch will make diamond jewelry more affordable to more customers, it said.
“We have done a lot of research across the globe to ensure that this proposition can actually land with our existing customer base,” Lacik said. “They really love the fact that we make diamonds accessible to them.”
Pandora assured customers that lab-made stones will have the same physical characteristics as mined stones. The new collection will include rings, bagels, necklaces and earrings.
The company’s focus on sustainable methods has coincided with significant growth in its market value. Last year, shareholders saw the value of their investment rise more than threefold. This week, Pandora raised its profit guidance to reflect faster-than-expected sales growth.
Shares in the company grew to 7%, and trade 5.6% higher as of 12:30 p.m. CEST.