Tiffany Promises More Transparency For Diamonds Amid Greater Concern Over Social Responsibility

Tiffany & Co

Tiffany & Co. announced Tuesday it will share the full background of its newly sourced diamond rings, an industry first as it looks to attract customers who care about quality as well as social and environmental responsibility.

FRANCE-US-ECONOMY-LUXURY-LVMH-TIFFANY&CO
ffany & Co. will share more background on its engagement rings. AFP VIA GETTY IMAGES

KEY FACTS

As demand for lab-grown diamonds is on the rise, it is likely Tiffany and other jewelers want to assuage conflict diamond and sustainability concerns which have long plagued the diamond industry. 

The 183 year old jeweler will provide a Tiffany Diamond Certificate with the diamond’s region or countries of origin as well as where it was cut and polished, graded and quality assured and set in jewelry starting this October.

Tiffany says disclosing the country where each stone is crafted and set marks a first for global luxury jewelers and follows last year’s announcement that Tiffany would become the first to provide the country or region of origin for its diamond rings.  

Twenty years ago, diamond industry leaders including Tiffany’s adopted the Kimberley Process aimed at stopping the worldwide trade of conflict diamonds, which it defines as “rough diamonds used to finance wars against governments,” but critics have said the definition is too narrow and does not factor human rights and sustainability concerns. 

In 2018, the advocacy organization Human Rights Watch evaluated whether 13 of the world’s major jewelry brands responsibly source their gems and minerals and Tiffany’s topped the list, still, the report found “none of the companies can identify all of their diamonds’ individual mines of origin.” 

Despite recent “quarantine proposals,” Tiffany’s engagement jewelry sales dropped nearly 97% year-over-year from $280.4 million to $142.5 million in the first quarter of 2020 and total net sales dropped by nearly 45% from more than $1 billion to $555.5 million.

TANGENT

Nearly 70% of millennials would consider buying an engagement ring with a lab-grown diamond, according to a 2018 report from MVI Industries, a marketing research and analytics firm for the gem, jewelry and watch industries. Lab-grown diamonds have the same chemical composition as a traditional diamond but they are usually less expensive.

Source: Forbes

Russia wants end to embargo on C.Africa diamonds

conflict minerals

Russia backs lifting an embargo on diamond exports from the Central African Republic, the deputy finance minister said Tuesday as Moscow was preparing to chair a global scheme regulating the gem trade.

Russia has made moves to strengthen its influence in the poor but strategic CAR in recent months, sending military instructors to the country and receiving mining concessions as part of a plan to boost its presence in Africa.

Next year Moscow will be chair of the Kimberley Process, a global scheme established in 2003 to eliminate the so-called “blood diamonds” produced in rebel-controlled areas.

It currently upholds an embargo for rough diamond exports from some regions of the CAR.

But Russian deputy finance minister Alexei Moiseyev said the system was not working and told RIA Novosti news agency that exports from all regions of the CAR “should be made legal”.

“The current bans are unfair to poor people who can only earn money by (diamond mining),” he said, adding that Russia believes diamonds from banned “red zones” still find their way onto the market, undermining the embargo.

The CAR has been wracked by violence between various armed groups and the government for years.

The country was banned from exporting diamonds in 2013 and suspended from the Kimberley Process, but in 2016 government-controlled zones in the west were judged to be compliant and exports were approved.

Russian company Lobaye Invest, which reportedly has ties to an ally of President Vladimir Putin, recently received a licence to mine for diamonds at several sites in the CAR.

Moiseyev said the government and a special working group should work out a mechanism to make exports from all parts of the country legal.

According to Kimberley, CAR produced 13,571 carats in 2018, down from about 365,000 carats before the civil war began in 2012, but Moiseyev said it was likely that diamonds from banned zones still ended up on the market, boosting the number.

“We suspect that the same amount (as before)… is being produced now and practically all ends up on the world market as contraband,” he said. “The money earned is used by criminals.”

Source: RFI

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Blood Diamond

Blood Diamond

A blood diamond (also known as a conflict diamond) refers to a diamond that is mined in war zones and sold to finance armed conflict against governments. The term gained prominence in the late 1990s due to the civil wars in Sierra Leone, Liberia, and other parts of West Africa, where diamonds were used to fund brutal wars, exploitation, and human rights abuses.

Key Characteristics of Blood Diamonds:
Source of Conflict:

Blood diamonds are often mined in regions where armed groups take control of diamond-rich areas and use the sale of diamonds to finance their military campaigns, including the purchase of weapons and equipment.
These diamonds are typically mined under inhumane conditions, with workers, often including children, subjected to forced labour, violence, and abuse.
Impact on Local Communities:

The mining of blood diamonds often involves severe exploitation of workers. They may be forced to work in dangerous conditions without adequate safety measures, receive little or no compensation, and suffer physical violence.
In some cases, communities are displaced from their homes, and the profits from the diamonds are controlled by rebel groups, rather than benefiting local communities or contributing to economic development.
Global Response and the Kimberley Process:

The Kimberley Process Certification Scheme (KPCS), launched in 2003, aims to prevent the trade of blood diamonds by requiring countries to certify that diamonds are sourced from conflict-free areas. The initiative was designed to create a global standard for diamond certification and ensure that diamonds sold on the international market are not financing conflict.
While the Kimberley Process has made progress in reducing the trade in blood diamonds, loopholes and weak enforcement still allow some conflict diamonds to enter the market.
Ethical Concerns:

The sale of blood diamonds raises significant ethical concerns in the jewellery industry. Consumers and advocacy groups have called for more transparency in the diamond supply chain to ensure that diamonds are ethically sourced.
Many jewellers and diamond retailers have pledged to sell only conflict-free diamonds, and some offer guarantees or certificates of origin to confirm that their diamonds were not sourced from conflict zones.
Impact on the Diamond Industry:

The term “blood diamond” has had a lasting impact on the reputation of the diamond industry, highlighting the need for ethical sourcing and responsible business practices.
Public awareness and consumer demand for ethically sourced diamonds have led to the rise of sustainable and conflict-free options, such as lab-grown diamonds and diamonds certified by organisations like the Responsible Jewellery Council.
Alternatives to Blood Diamonds:

Many consumers choose to buy ethically sourced diamonds or lab-grown diamonds as alternatives to blood diamonds. Fairmined and Fairtrade gold are also options for buyers seeking to ensure their jewellery is ethically produced.
Some jewellers also offer diamonds that have been certified as conflict-free through reputable certification schemes such as the Kimberley Process or RJC certification.
Cultural and Legal Implications:

The issue of blood diamonds has drawn attention to the human rights violations that can accompany the extraction of natural resources. The global trade in these diamonds has also led to legal challenges in various countries, with some governments and organisations advocating for stricter regulations and more robust certification systems.
The term “blood diamond” has become synonymous with the broader humanitarian crisis that can occur when natural resources are exploited for profit in conflict regions.