THE BUSINESS OF ETHICS
Karl-Friedrich Scheufele is be ing the whole house on ethical gold propelling Chopard fu her
KARL-FRIEDRICH SCHEUFELE is possibly the most unassuming man to lead a Swiss luxury watch brand. While the mavericks at the helm of competing brands try to outdo one another in the flamboyance stakes, the softspoken Scheufele operates from under the radar, preferring to let Chopard’s jewellery and timepieces do the talking instead.
And they make quite the literal ruckus. The brand’s L.U.C Full Strike minute repeater won the coveted Aiguille d’Or award at the 2017 Grand Prix d’Horlogerie de Genève ‒ the horological equivalent of Best Picture at the Academy Awards ‒ in part due to its crystal-clear chimes.
Magnificent as the chimes were, what was also impressive was the fact that the case of the L.U.C Full Strike was fully crafted from Fairmined rose gold. It was a journey that started in 2013 when Chopard launched the Green Carpet Collection at the Cannes Film Festival. From there, the brand announced its journey towards sustainable luxury, culminating in its announcement in the middle of 2018 that that it would use 100% ethical gold in all its creations.
“It took us more than two years to get ready for that announcement,” shared Scheufele. “The greatest challenge was ensuring that the chain of custody corresponded to our standards. I believe that when you proclaim your intention to do something, you have to keep your word.”
There was also the matter of the gold in its inventory. “We had to consume the remaining gold we had so that we could be totally sure that we were only working with ethical gold,” said Scheufele. Take a watch case, which starts off as a 150-gram block of gold that’s processed into the finished product weighing around 50 grams. The 100 grams of gold scrap would be melted and reused. This, Scheufele observed, took a while.
The co-president admitted that being a family-owned company has made the journey easier. “Shareholders tend to have a short-term view,” opined Scheufele. “Chopard is largely free of such pressure, but I believe that in the long run, even the most aggressive shareholders will realise that a company’s value is affected by the efforts that are made and, more importantly, not made.”
The sustainability conversation, however, would not be complete without cost considerations. Unfortunately, doing good usually comes with a large price tag. It’s a millstone that sinks most companies, but it’s a burden Scheufele is happy to bear.
“We control the production so it’s easier for us compared to brands who work with third-party suppliers. Still, production costs have increased, but we believe that clients are ready to pay a little more to feel better about buying a product that’s made from ethical gold,” said Scheufele.
I asked if Chopard would reconsider its position should the bottom-line be affected. Scheufele laughed. “The bottom-line is that the bottom-line isn’t affected. And therefore, there is no reason to reconsider.”
For all the stick that the younger generation tends to get from the older one, Scheufele was pleasantly surprised to discover that the youth had a strong appreciation for Chopard’s journey to sustainable luxury.
“Obviously, we want our brand to be meaningful to the younger generation and I’m glad to see that they are connecting with us on a deeper level.”
Scheufele also plays a personal role to promote sustainability. When not in his office, he tends to his organic wine business, which, to no one’s surprise, is also environmentally friendly.
He also hopes that Chopard’s employees and the world in general attempt to live life in a sustainable and environmentallyfriendly manner. “It should just be like second nature.” AM
“DOING GOOD USUALLY COMES WITH A LARGE PRICE TAG – A MILLSTONE THAT SINKS MOST COMPANIES – BUT IT’S A BURDEN CHOPARD IS HAPPY TO BEAR”