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SAVE THE DATE
World Diamond Council
Annual General Meeting
2 & 3 October 2019 | Antwerp, Belgium
LATEST NEWS
WDC marks UN’s International Day of Peace
with public launch of upgraded and expanded
System of Warranties
with public launch of upgraded and expanded
System of Warranties
SEPTEMBER 21, 2021
The revised declaration to be added to invoices and memos by sellers of rough diamonds, polished diamonds and jewelry set with diamonds, in accordance with the upgraded WDC System of Warranties. It confirms adherence to the WDC SoW Guidelines, which support universally accepted principles of human and labor rights, anti-corruption and anti-money laundering (AML). The declaration appears against the background of the poster created in honor of United Nations 2021 International Day of Peace.
The World Diamond Council (WDC) has marked the 40th anniversary of the establishment by the United Nations of the International Day of Peace with the official public launch of its upgraded System of Warranties (SoW).
“For the International Day of Peace 2021, the United Nations set the theme for ‘recovering better for an equitable and sustainable world,’ and called on us all to mark the occasion with acts of compassion, kindness, and hope,” said WDC President Edward Asscher. “We thus felt it an appropriate occasion to launch the upgraded System of Warranties. It reflects our vision for a diamond industry that is not only free of conflict, but through its actions also promotes safe and secure working environments, equal opportunity and proper governance.”
Expanded Scope
Like the original SoW introduced 18 years ago, the upgraded SoW requires that all sellers of rough diamonds, polished diamonds and jewelry containing diamonds include a declaration on B2B invoices and other transaction documents, such as consignment memos, stating that the goods being sold comply with the Kimberley Process Certification Scheme (KPCS), and thus meet the Kimberley Process’ standard of being conflict free.
What’s different to the original is that the revised warranty statement additionally includes a commitment that the sellers adhere to the updated WDC SoW Guidelines, which expressly support universally accepted principles of human and labor rights, anti-corruption and anti-money laundering (AML).
Specifically, the WDC SoW Guidelines reference the UN Guiding Principles on Business and Human Rights, the ILO Declaration on Fundamental Principles and Rights at Work, the UN Convention Against Corruption, and national AML guidelines that comply with the FATF’s 40 Recommendations on Money Laundering for Dealers in Precious Metals and Stones.
Annual Self-Assessment
A critical new element of the upgraded SoW is that all users will be required to register on a dedicated website, and once a year successfully complete an online self-assessment, to gauge their compliance with the WDC SoW Guidelines.
The self-assessment questionnaire is the primary component among a suite of due diligence tools that is provided on the dedicated WDC System of Warranties website, which was launched today at: https://www.wdcsow.org.
The self-assessment questionnaire is individualized according to the size of the company or organization being tested, by the specific range of business activities in which it is involved, and whether it is already compliant with other recognized due diligence systems, like the Responsible Jewellery Council’s Code of Practices or De Beers’ Best Practice Principles Assurance Program.
Supporting Implementation of the Upgraded SoW
To assist members of the industry to implement the upgraded SoW, the WDC is undertaking an extensive international educational program, in coordination with diamond bourses and other national and international trade associations. Information about the program will be made available in the near future.
To enable a smooth transition from the original to the upgraded SoW, there will be a transitional period, during which companies still can decide to accept the older warranties from their clients, of three years in the case of rough purchases and five years in the case of all other purchases.
WORLD DIAMOND AND JEWELRY INDUSTRY LEADERS
ENDORSE WDC'S UPGRADED SYSTEM OF WARRANTIES
With continuing resistance to reforming of Kimberley Process, WDC President warns of market with two diamond value chains
JUNE 25, 2021
“In the not-too-distant future, there will be a difference between rough diamonds that can be guaranteed to have fulfilled the consumers’ demands and expectations, and other diamonds,” said Edward Asscher, President of the World Diamond Council (WDC), speaking today during the closing session of the 2021 Intersessional Meeting of the Kimberley Process (KP). “Responsibly sourced diamonds will be more in demand. They will obtain better prices in the marketplace, and buyers at jewelry stores will demand proof that they are indeed responsibly sourced before purchasing them as polished.”
In a powerful address, the WDC President questioned the readiness of certain KP Participants to meet the expectations of today’s jewelry consumers, who increasingly demand that diamonds can be verifiably shown to have been responsibly sourced, and to have been handled in accordance with essential principles of human rights, environmental protection and social justice.
WDC President Edward Asscher during the Closing Session of the Kimberley Process’s virtual 2021 Intersessional Meeting, on June 25, 2021.
“It might well be that the considerations of consumers are far beyond the field of perception of producing countries, polishing centers and governments. But what happens if producers do not listen to the market? They become obsolete,” Edward Asscher said.
“The Kimberley Process has the ability to create a level playing field,” The WDC President stated. “If it meets these consumer expectations, then all natural diamonds from all participating countries will be represented. But there is clearly resistance, and I believe it is because some of us see the Kimberley Process Certification Scheme as an enabler of trade, whilst others see it as a restrictor of trade.”
In his address, the WDC President explained the consequences of a market with two different value chains. “Some producing countries will face less demand for their goods. Can you imagine having a wonderful, beautiful diamond, but it is difficult to sell because prospective buyers will not have been assured that the stone has done good on its way from the mine to the market?” he asked.
“Small and medium-sized enterprises will experience difficulties selling natural diamonds, because they do not belong to the elite group of polishers that can guarantee that the diamonds they source and polish are responsibly sourced. That will create an unlevel playing field in the polishing centers, and threaten the livelihoods of thousands who own, are employed or service SMEs,” Edward Asscher said.
The WDC President stressed that there remains limited time to change course. “I trust that this truth will sink in before the [Kimberley Process] Plenary later this year,” he said. “There are only two choices: (1) we genuinely work together to reform the KP, addressing consumer expectations, or (2) we leave many of our friends here at the KP behind in a much smaller and concentrated diamond industry, where there are two value chains – one with consumer demand and one without.”
To download the full version of the WDC President address to the Closing Session of the KP Intersessional Meeting on June 25, 2021, PLEASE CLICK HERE.
With consumers demanding greater accountability and sustainability, the Kimberley Process must not be left behind, WDC President declares
JUNE 21, 2021
ABOVE: WDC President Edward Asscher addressing the Opening Session of the Kimberley Process’s virtual 2021 Intersessional Meeting, on June 21, 2021.
“Consumers today want to know about a diamond’s provenance. They want to be assured that the diamonds they are considering buying have made a positive impact on the world,” said Edward Asscher, President of the World Diamond Council (WDC), speaking today during the opening of the 2021 Intersessional Meeting of the Kimberley Process (KP), which is being conducted virtually for the first time in the organization’s 21-year history.
“The prevailing subjects that are today on the agenda of the international community, as well as that of the diamond industry, are: human rights, environmental protection and social justice. They are certainly being discussed and advanced outside of the Kimberley Process. And we must not be left behind,” the WDC President stated.
The Kimberley Process Intersessional Meeting, which is being held this week, is one of two regularly scheduled meetings conducted by the KP in any calendar year, with the other being the KP Plenary. It is being chaired by the Government of the Russian Federation, which holds the post of KP Chair this year. The WDC, which together with civil society has Observer status in the KP, represents the industry in the tripartite forum charged with eliminating the trade in conflict diamonds.
Noting that consumer desire is the only value driver for diamonds, Edward Asscher stressed that not meeting consumer expectations presents a very real risk for the industry, as well for countries who rely on diamonds for their economic wellbeing and stability. “If the KP is left behind, it runs the risk of becoming irrelevant, and so may the category of natural diamonds. Let us not forget that consumers have alternatives. Meeting their trust and ensuring their confidence needs must be at the top of our agenda,” he stated.
In his address, Edward Asscher referred to the imminent introduction of the WDC’s new System of Warranties, which he said will “help all participants in our business sector with best practices, compliance and due diligence when purchasing diamonds. We are sending a strong signal that we are ready to reform, and that we do not want to be left behind.”
The WDC President concluded his address by reiterating the spirit of the KP and of the community that the KP unites, and of its members’ aim to protect the integrity of natural diamonds.
“This must be done within the KP – in this very forum – and not elsewhere,” he said. “We must be able to stand behind our promises and our mandate to protect the rights of those who are connected to the diamond industry, whether they reside in producing countries, polishing countries or in the jewelry markets. We are all in this together, whether we are from government, industry or civil society. It doesn’t matter.”
“We are all here to protect the integrity of the whole diamond value chain in every aspect: human rights, social rights and environmental protection. We can only achieve results if we work together,” the WDC President stated.
To download the full version of the WDC President address to the Opening Session of the KP Intersessional Meeting on June 21, 2021, PLEASE CLICK HERE.
WDC and RJC enter cross-membership partnership to increase knowledge-sharing and impact on lives and livelihoods throughout the jewelry supply chain
MARCH 16, 2021
The World Diamond Council (WDC) and Responsible Jewellery Council (RJC) have entered into a cross-membership partnership and signed mutual codes of conduct. The two leading diamond and jewelry industry organizations are dedicated to the adoption of responsible business practices across the supply chain, and this partnership will help increase knowledge-sharing, pilot new initiatives, and increase the positive impact they both make on the lives and livelihoods of individuals and communities associated with jewelry, watches and the precious materials from which they are made.
The increased cooperation between the organizations will see an RJC official joining the WDC Kimberley Process Task Force to take part in critical discussions about the Kimberley Process Certification Scheme (KPCS). This includes the expansion of the definition of conflict diamonds and principles for responsible diamond sourcing, and also the worldwide adoption of WDC’s revised System of Warranties (SoW). For its part, a WDC official will join the RJC SDG Task Force, which is an action platform for the jewelry and watch industry committed to the achievement of the Sustainable Development Goals (SDGs). Both appointments will take place with immediate effect.
Over the course of the partnership, both WDC and RJC will report to their members on progress with the SoW and SDGs, and support members of the industry in applying the relevant programs and principles into their own business systems with the help of case studies, hands-on workshops and a continued dialogue with policy makers and investors.
Edward Asscher, President of the World Diamond Council.
Elodie Daguzan, Executive Director of the World Diamond Council.
David Bouffard, Chair of the Responsible Jewellery Council.
Iris Van der Veken, Executive Director of the Responsible Jewellery Council.
“Cooperation at this level is critical to raising the level of knowledge about responsible sourcing, driving action and having a positive impact on all businesses, small and large, at every level of the diamond supply chain,” said Elodie Daguzan, WDC’s Executive Director. “Through this partnership we can do more to increase understanding of the KPCS and present a united industry front dedicated to broadening its scope through the expansion of the definition of conflict diamonds. Cooperation will also fast-track the adoption of WDC’s revised System of Warranties, creating a standard industry baseline for KPCS-compliance and commitment to fundamental human and labor rights, and anti-money laundering and anti-corruption principles. I am excited to be working closer with the team at RJC to unite the power of all our members and accelerate positive change in our industry.”
“Uniting the positive forces of RJC and WDC is a major milestone in our industry, and I am inspired by what we can achieve together, partnering to promote the fulfilment of the 17 Sustainable Development Goals in the industry,” said Iris Van der Veken, RJC Executive Director. “Being actively involved in the WDC Kimberley Process Task Force is an excellent opportunity to bring about more rapid change in our industry, globally. We need to stay focused and increase our efforts during the Decade of Action to achieve a jewelry supply chain that is responsible and conscious of its impact on people and the planet. We have a great opportunity to build back better.”
Commenting on the agreement, Edward Asscher, WDC President, said: “Partnering with RJC creates exciting opportunities for our industry. Since 2000, WDC’s entire purpose has been to preserve the integrity of the natural diamond, and that of the industry that mines, manufactures and sells it. This agreement not only means increased understanding of the role played by the Kimberley Process and the critical governance that it provides, but it also strengthens our industry’s reputation, as a business sector dedicated to improving the lives of all our members, stakeholders, communities and countries.”
Commenting David Bouffard, RJC Chair, said: “We welcome this partnership with WDC. For over 15 years, RJC has taken a leading role on sustainable development and helping increase the integrity of the global jewelry supply chain. We believe in shared values and we are encouraged by the opportunity to share our knowledge and expertise in standard-setting with WDC members.”
WDC urges enhanced due diligence in respect to rough diamond exports believed to have originated from the Central African Republic
FEBRUARY 24, 2021
In light of recent reports by the international media, observers on the ground and NGOs about political unrest in the Central African Republic (CAR), the World Diamond Council (WDC) reiterates its call to members of the diamond industry to carry out enhanced due diligence when considering the purchase of goods that are known to have originated or are suspected of having originated in the country.
Over the past several weeks, it has been reported that the CAR capital of Bangui and other major towns have come under fire from rebel fighters. The officially elected government and its allied forces are strongly fighting armed rebel groups siding with the political opposition. The situation has caused many civilians to seek refuge in other parts of the nation or neighboring countries, such as the DRC.
Due to the political unrest, and in accordance with the special operational framework that was approved in November 2019 by the Kimberley Process, the WDC urges all members of the trade to continue conducting enhanced due diligence, regarding the import of rough diamonds from the CAR and its neighboring countries. Although diamond production from conflict-affected areas in CAR represents only a very small percentage of global diamond production, diamond businesses should exercise the utmost caution.
The only rough diamonds sourced in the CAR that currently can be purchased legitimately are those that meet the minimum requirements of the Kimberley Process Certification Scheme (KPSC) and are accompanied by official CAR Kimberley Process (KP) certificates. These indicate that the diamonds were mined in KP-compliant “green” zones, which are areas under secure CAR-government control that show no evidence of armed rebel group activity.
The WDC calls on the entire industry to uphold the integrity of the diamond supply chain by proactively implementing the guidelines contained in the WDC’s new System of Warranties. These include addressing risks in areas beyond those covered by the Kimberley Process Certification Scheme, including human and labor rights, AML and anti-corruption.
FOR FURTHER INFORMATION, PLEASE CONTACT:
Udi Sheintal, WDC Secretary and CAR MT Representative
secretary@worlddiamondcouncil.org
WDC’s 2020 AGM focuses on the latest KP developments
and industry’s efforts to source responsibly, despite pandemic
OCTOBER 26, 2020
ABOVE: Participants during the virtual 2020 WDC Annual General Meeting, clockwise from top, center: David Prager, Executive Vice President Corporate Affairs, De Beers Group; Edahn Golan, industry analyst and the panel moderator; Ronnie Vanderlinden, WDC Treasurer; Elodie Daguzan, WDC Executive Director; and Edward Asscher WDC President.
Members of the World Diamond Council assembled for the organization’s Annual General Meeting on October 19, 2020, joined by invited guests, among them representatives of the governments involved in the Kimberley Process and members of civil society. In contrast to previous WDC AGMs, this gathering was not held in person but rather by videoconference, a consequence of the many travel restrictions in place worldwide because of the COVID-19 health crisis.
The new format of the AGM allowed for an abbreviated 90-minute session, comprised of a keynote address by David Prager, Executive Vice President Corporate Affairs at the De Beers Group, on the industry’s role to meet the expectations of the changing consumer, and a panel discussion led by Edahn Golan, a noted industry analyst, with Mr. Prager and Mr. Asscher, the WDC President. It was followed by the more formal AGM agenda, with reports by the WDC President, WDC Executive Director Elodie Daguzan and WDC Treasurer Ronnie Vanderlinden.
The dominant theme of the 2020 AGM was the industry’s obligation to maintain and grow consumer confidence in the sector. It focused on the critical role that institutional organizations like the KP and the WDC, through its System of Warranties, have in providing a backbone to this mission, particularly in a market that is being fundamentally impacted by the global pandemic. In his report to the AGM, Mr. Asscher spoke about the act of gifting a natural diamond as a symbol of love and appreciation for those who are closest to you. This is due to the emotional connection of consumers to diamonds, and it is a connection that is underpinned by trust.
“Today’s consumers understand very well that loving relationships are so important in these difficult times,” the WDC President said. “Diamonds are still considered symbols of loving relationships but now consumers all over the world are asking for more. The key words today are sustainability, ethically sourced diamonds, and proof of respect for human rights. The WDC is key to setting those conditions, together with the KP member governments and the NGOs.”
This sentiment was underscored in his keynote address by Mr. Prager. Recent developments, he said, “…have reinforced the importance of brands not only to take a stand, but for brands to take action. It can be demonstrated today that being a brand is more than just selling a product that consumers want. It is also about understanding what matters to those consumers and how your brands align with their values in a meaningful way.”
Research today indicates that social purpose is the new status of luxury goods, Mr. Prager stressed, pointing out that consumers want the products they buy “not to be part of the problem, but rather part of the solution to important global issues.”
This sentiment was underscored in his keynote address by Mr. Prager. Recent developments, he said, “…have reinforced the importance of brands not only to take a stand, but for brands to take action. It can be demonstrated today that being a brand is more than just selling a product that consumers want. It is also about understanding what matters to those consumers and how your brands align with their values in a meaningful way.”
Research today indicates that social purpose is the new status of luxury goods, Mr. Prager stressed, pointing out that consumers want the products they buy “not to be part of the problem, but rather part of the solution to important global issues.”
The Kimberley Process Certification Scheme (KPCS) has played a critical role in defending the integrity of the diamond supply chain, Mr. Prager stated, but it would be incorrect to regard it as a complete solution. Explaining his point by way of a metaphor, he noted that a traffic light is an important element in regulating the movement of cars, but in and of itself it will not completely prevent speeding. Other solutions are required, like speed bumps and speed traps. In a similar way, he said, a regulatory mechanism like the KPCS must be supported in its protection of the diamond value chain by other systems, like the OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas, as well as the new WDC System of Warranties and the Responsible Jewellery Council (RJC) Code of Practices.
Asked by the panel discussion moderator about the path forward for the KP, Mr. Asscher spoke about the introduction of Seven Principles in support of responsible sourcing at the KP. These, he said, include complying with international conventions related to human rights, labor rights, environmental practices, anti-corruption and anti-money laundering, as well as supporting the development of communities in the mining and production areas, and disclosing and differentiating natural and synthetic diamonds.
“Those seven principles, if we are able to reach consensus at the KP, will have a remarkable impact on the influence and recognition of these topics as part of the whole KP system,” he said.
