Editor’s Note
This article outlines the interconnected ecosystem of the natural diamond industry, highlighting the shared responsibility across the value chain—from major miners to independent retailers—to maintain high ethical and environmental standards.
The natural diamond industry operates as a large and diversified ecosystem of organizations and communities. From large-scale diamond mining companies, like the members of the Natural Diamond Council, to independent diamond retailers and designer brands, everyone plays a role in ensuring the entire diamond value chain is upholding the highest standards, from the people whose lives we touch to the environment in which we operate.
Every purchase of a natural diamond supports an ethical diamond industry that values responsible and transparent business practices, while helping local communities to generate long-term sustainable development and a lasting positive legacy.
[Source: Trucost ESG Analysis]. These benefits are infused into communities through local employment, education, sourcing of goods and services, taxes and royalties, social programs, and infrastructure investment.
The natural diamond industry abides by numerous international human rights frameworks and labor regulations, alongside country-specific regulations and further rigorous ethical, social, and environmental requirements to ensure it does business in the ethical diamond industry in a responsible way.
Some important examples of these are explained below:
The UN Convention Against Corruption is used as a guideline by international bodies to act against corruption and money laundering. It aligns with the Financial Action Task Force (FATF 40) Recommendations on Money Laundering for Dealers in Precious Metals and Stones.
The Organization for Economic Co-operation and Development (OECD) Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict Affected and High-Risk Areas is the foundation for a number of standards, certifications and regulations developed in recent years to increase transparency in jewelry supply chains. By following this guidance, jewelry companies respect human rights, avoid contributing to conflict, and can create their own framework for due diligence.
The UN Guiding Principles on Business and Human Rights and The International Labour Organisation (ILO) Declaration on Fundamental Principles and Rights at Work apply to all nations and to all business enterprises, regardless of their size, sector, location, ownership and structure.
All Natural Diamond Council members must comply with relevant international and national environmental legislation and are aligned with international standards such as ISO 14001, which provides a framework for an effective environmental management system (EMS). The NDC members must publicly report annually on their adherence to the Sustainability Commitments utilising the Global Reporting Initiative (“GRI”) Guidelines and GRI Mining and Metals Sector Supplement or comparable guidelines.
The United Nations Global Compact (UNGC) and the 17 UN Sustainable Development Goals (SDGs) provide a guiding framework for all organizations in defining and tracking their sustainability programs. All Natural Diamond Council members have developed sustainable diamond strategies that are aligned with and support the UN Sustainable Development Goals in their operations.
The Kimberley Process, also known as the Kimberley Process Certification Scheme (KPCS), is a joint initiative between governments, diamond industry bodies and civil society, mandated by the United Nations and the World Trade Organization, to stem the flow of ‘Conflict Diamonds.’