PARIS — Circularity rather than fresh extraction is the hard luxury industry’s biggest untapped climate and business levers, according to a report from the Watch & Jewellery Initiative 2030 published Thursday.

A decade’s worth of precious metal is already sitting unworn in consumers’ hands, the Kering- and Cartier-founded sustainability pact said.

Standing at roughly 97,000 tons of gold and 790,000 tons of silver, that’s more than most active mines will produce over the next 10 years and represents around 45 to 50 percent of the globally extracted stockpile of these precious metals.

Dubbed an “urban mine,” the stash comprises items with high emotional value but “it is reasonable to think that a portion is also dormant in security boxes and rarely used,” it added.

To wit: about half of luxury watch owners say they have at least one timepiece they never wear, according to a survey by Watchfinder & Co. mentioned in the WJI’s report, which was produced in collaboration with Deloitte as knowledge partner.

Recycled gold can generate up to 99.8 percent lower emissions than newly mined gold, with no loss of quality or value. Yet the industry’s value chain remains heavily dependent on virgin metals and gemstones.

The WJI estimates total value-chain emissions at 40 to 60 megatons of CO2 equivalent a year, with upstream sourcing and manufacturing representing around 70 to 80 percent of the footprint. Further stages, from distribution to end-of-life, account for 20 to 30 percent but are critical to enabling upstream change via low-carbon product lines and robust take-back and recycling schemes.

Also important is the “end-of-first-life” pattern for unworn items, with sharp divergences by price points. Higher ticket items are more likely to be resold, partially recycled or stripped for their materials such as gemstones. Certified resale platforms, which have taken off over the past decade, have had an impact, particularly on watches. At the other end of the price scale, “gadget-like” timepieces and costume jewelry still tend to follow local disposal routes.

Meanwhile, the hard luxury industries’ dependency on newly mined material also brings mounting operational and financial risk. In addition to social and environmental benefits, non-virgin and low-carbon materials also are a hedge against supply volatility.

Precious metals, often sourced in regions such as sub-Saharan Africa, Latin America and Southeast Asia, are exposed to geopolitical shocks, regulatory changes and environmental disruption, with recent spikes in gold and silver prices squeezing margins and threatening to push up retail prices for consumers made particularly cost-sensitive due to global macroeconomic and geopolitical uncertainties.

Around 3,600 tons of gold, 25,600 tons of silver and 457 tons of platinum are mined around the world annually, with almost half of the gold and one-fifth of the silver and platinum sourced by the watch and jewelry industry.

Gold and silver are “among the most environmentally damaging raw materials to extract,” with a “significant and complex” social impact.

The WJI points to upstream progress in decarbonizing mining by increasing the share of renewable electricity at sites from today’s 10 to 15 percent to 20 to 30 percent, which could shave off a further 10 to 15 percent of emissions.

Diamonds also have a large role to play, with lab-grown and mined stones described as “coexisting choices for consumers.” The former now take a 20 percent share of the jewelry diamond market, up from 1 percent in 2015, and can cut emissions by around 90 percent when powered by renewables. Meanwhile, lower-carbon mining is shrinking the footprint of natural stones, according to the WJI’s findings.

Launched in 2022, the Watch and Jewellery Initiative spans high and low players, including brands, distributors and suppliers, regardless of size. Members must commit to progress in three areas — building climate resilience, preserving resources and fostering inclusiveness — and are required to report on progress on a regular basis.