Improving mine-to-market traceability remains critical: Natural Diamond Council

November 11, 2024

Published this month, a second-edition release from NDC addresses the diamond industry's most pressing issues. Image courtesy of Natural Diamond Council

By Amirah Keaton

Natural Diamond Council (NDC) is working to enhance transparency around gemstone sourcing, which has become increasingly vital as consumer expectations evolve.

The industry advocate is following up on “Diamond Facts,” its comprehensive report series that aims to educate consumers about responsible practices. Published this month, a second-edition release from NDC addresses pressing topics, outlining the sector’s environmental impacts, the socioeconomic benefits to communities involved in the trade and more.

For the report, NDC consulted industry experts and independent sustainability advisors, conducting research at the beginning of 2023 and updating data and results this year. Methodologies for calculations pertaining to environmental footprints are detailed in the footnotes, with NDC noting that “where industry data gaps or inconsistencies exist, a range has been used to provide balance.”

More mythbusting
NDC’s latest report attempts to bust what it calls “common myths” on the journey of diamonds from mine to market.

To the question of what the natural diamond industry is doing to reduce its carbon footprint and protect biodiversity, authors list statistics.

For instance, through various renewable energy projects stemming from carbon reduction strategies, industry players are currently protecting the biodiversity of an area almost four times the land they use, equaling “the size of New York City, Chicago, Washington and Las Vegas combined.”

Additionally, the report shares that as much as 99 percent of the waste from diamond recovery efforts is rock and 84 percent of the water used in diamond recovery is recycled.

Other aspects of research hones in on the difference between natural diamonds and those that are lab-grown, calling attention to falling prices amid the segment.

#ThisOrThat - Which fact surprises you the most?
This 👉 ~80% of rough natural diamond value typically remains with local communities
or
That 👉 You can detect a natural diamond from a laboratory-grown diamond using a tester
Uncover more at https://t.co/ADISvUIXxL
— Only Natural Diamonds (@naturaldiamonds) November 9, 2023

NDC notes that, from 2016 to 2023 and “in some cases,” the price of a 1.5-carat manmade stone declined by more than 74 percent, as the cost of natural diamonds has risen by an average of 3 percent per annum over the course of the last 35 years.

Citing consulting firm Bain & Company, the report highlights that post-pandemic, in 2021, rough natural diamond prices grew by 21 percent, and prices increased by 9 percent year-on-year for polished diamonds.

“Natural diamonds are part of a dynamic industry, and the market is always subject to change,” said David Kellie, CEO of NDC, for the report.

“The information we share must reflect these changes too,” Mr. Kellie said. “This new edition of Diamond Facts, part of our Diamond Reports series, contains updated data on myths included in the first edition and new myths addressed with previously unreported data.”

Mine to market
The NDC details advancements in technology, such as blockchain, that enhance transparency (see story).

The report provides context regarding progress on traceability, informing readers that the Kimberley Process Certification Scheme (KPCS), a paper-based tracking system, has remained the default since the early 2000s, when U.S. regulatory legislation that sought to reduce sales of conflict diamonds was enacted. Since then, KPCS has gone live on the blockchain, the digitized version delivering increased efficiency.

Did you know laboratory-grown diamond manufacturing requires enough energy to generate temperatures close to 20% of the temperature of the Sun's surface? 🤯
Uncover more at https://t.co/ADISvUIXxL
— Only Natural Diamonds (@naturaldiamonds) September 20, 2023

According to authors, these online resources “can ensure that when diamonds are traded on blockchain, each transaction undergoes a clearance process,” and are additionally able to ensure regulatory, anti-money laundering and global banking protocols compliance.

This digital ledger technology, already adopted by many in the industry, allows consumers to trace a diamond’s lifespan from origin to point of sale, a topic of continued interest to NDC and its ambassadors (see story).

The report underscores the importance of such tools, which not only meet buyer demands for traceability but also strengthens accountability within the supply chain.

NDC intends to release annual updates to the “Diamond Facts” series to reflect the ongoing changes within the industry and to reinforce its commitment to educating the public on responsible practices.

Share your thoughts. Click here

Improving mine-to-market traceability remains critical: Natural Diamond Council

Capri Holdings restructures leadership at Michael Kors

Rolls-Royce expands Private Office network to Seoul

Burberry plays with AR tools, pilots digital scarf try-on program

British Airways revamps first class offerings

BFCM spending poised for record high in 2024: Deloitte

Happy Thanksgiving!

Luxury Unfiltered: How empathy can save the luxury industry

L’École School of Jewelry Arts organizes ‘Paris, City of Pearls’ exhibition

New study from Cunard points to cognitive benefits of slow travel

Frette launches product collaboration with Portrait Milano