Jeweller: The Great Diamond Debate - Round II

GEMOLOGICAL INSTITUTE OF AMERICA
Sustainability and gem tracking
have arrived in force
R USSELL SHOR’S KEY POINTS:
Sustainability, fair practices and provenance have become key concerns for consumers
The natural diamond industry has taken great strides in ensuring supply chain transparency in 2019
The challenge for diamond companies and retailers is to counteract lingering negative sentiment
This year, businesses have begun to take action
towards consumer concerns about sustainability
and the origins of the products they buy.
Many sectors, including the diamond and jewellery
industries, have created initiatives to support
sustainability standards. Even the world’s major
financial markets are developing indices that
address investor concerns about environmental,
social and governance (ESG) issues, and are
integrating them into fund trading.
A Financial Times report, published in October
2019, noted that ESG issues have taken their
place alongside important financial performance
indicators, such as yield and return, for investors
looking at new investment opportunities. This marks
a profound shift from just a few years ago.
The reason? Investors, especially younger ones,
demand it.
All businesses along the diamond and jewellery
supply chain – from mine to market – have
embraced this movement as consumers
become more concerned about sustainability,
including sound environmental and fair labour
practices, fair returns to communities, and
women’s empowerment.
Along with sustainability, consumers also want
to know where their gems, and even their gold,
come from.
THE INDUSTRY PERSPECTIVE
The strength of industry sentiment toward these
topics was evident by the standing-room only
crowds at two seminars on the subjects at the JCK
Las Vegas show in June.
One was sponsored by GIA (Gemological Institute
of America) and the other by the Responsible
Jewellery Council (RJC).The messages were clear
in both seminars: consumers are increasingly
demanding that their gems, diamonds and precious
metals be ethically sourced.
In the consumer’s view, the responsibility for this
extends through the entire value chain.
At the GIA panel, ‘Embracing Sustainability Amid
New Consumer Expectations’, moderator Susan
Jacques, GIA president and CEO, acknowledged
that, despite significant efforts – including the
Kimberley Process and the establishment of the RJC
– consumers have harboured negative impressions
of the industry for years.
The five panellists – Dr Saleem Ali, of the University
of Delaware; Marcus ter Haar, CEO of Okavango
Diamond Company, Botswana; Lisa Bridge, CEO of
US retailer Ben Bridge Jeweler, which operates more
than 80 stores; Swarovski executive Nadja Swarovski;
and Claire Piroddi, the sustainability manager for
watches and jewellery at French luxury group Kering
– detailed the efforts of their organisations to
adopt sustainability programs and counter the
lingering negativity.
Ali, a professor of energy and environment, said,
“Jewellery may be a luxury product that not
everyone needs, but it does sustain a standard of
living for many people who work in the gem and
jewellery supply chain. These workers can create
wealth and economic growth from the elements of
the Earth.”
He added that the conditions must be there to
enable them to do so.
Ter Haar cited the benefits diamonds have brought
to Botswana, “It’s the circles of sustainability:
people, planet, profit. In Botswana, we’ve seen our
capital [Gaborone] grow from a small town to a
progressive, modern city, [with] a great increase
in life expectancy, [and] free health care – all
from diamonds, which account for 50 per cent of
government revenue and 30 per cent of GNP. Every
diamond purchased represents food on the table.”
Swarovski told the audience, “Today, companies
must think of others as well as themselves.”
Her business focuses on three basic principles:
positive production, women’s empowerment and
fair partnerships.
Meanwhile Piroddi stressed that “95 per cent of
luxury products come from nature, so we must take
care of our environment.”
She also revealed that in a company survey done
for its fashion brands – including Gucci, Yves Saint
Laurent and Alexander McQueen – “75 per cent of
people care where their products come from [and]
they are more informed than ever.”
Finally, Bridge told the audience, “Sustainability
begins at home.” She noted that her company
supports community organisations in each town
where it has stores.
At the RJC panel, ethically sourced products
occupied much of the discussion. The moderator,
RJC executive director Iris van der Veken, stressed
that sustainability is a shared responsibility across
the entire value chain.
“Trust and transparency are the new equity,” van der
Veken noted. “People want to have confidence that
their purchases do some good.”
One of the most difficult areas for the incorporation
of sustainable sourcing practices is artisanal mining,
December 2019 Jeweller 23