The World Diamond Council Convenes 13th Annual General Meeting in Dubai: A Commitment to Ethical Sourcing and Industry Integrity

The global diamond industry recently witnessed a pivotal gathering as the World Diamond Council (WDC) concluded its 13th Annual General Meeting (AGM) in the vibrant city of Dubai. Hosted by the distinguished Dubai Multi Commodities Centre (DMCC), this event brought together an exceptionally comprehensive and inclusive group of participants, marking it as one of the most representative AGMs in the WDC’s recent history. Stakeholders from across the entire diamond supply pipeline, encompassing major global industry players, strong representation of both Eastern and Western interests, and critical participation from Africa, converged to engage in extensive and constructive dialogues.

The primary agenda of these discussions revolved around crucial issues and transformative opportunities for the diamond industry. A central focus was the unwavering commitment to ensuring that no diamond is ever linked to conflict or human rights abuses. In this critical endeavor, the WDC plays an indispensable role, serving as the single, unified voice of the diamond industry as an Official Observer of the Kimberley Process Certification Scheme (KPCS). The diverse attendance underscored the collective dedication to upholding the highest ethical standards and fostering a responsible future for the sector.

Dubai: A Strategic Nexus for Responsible Diamond Trade and Industry Growth

Dubai’s prominence as a global hub for the diamond trade was highlighted by the DMCC’s role as host, further cementing its commitment to responsible sourcing and industry development. Ahmed Bin Sulayem, Executive Chairman of the DMCC, delivered a compelling keynote address during the AGM. In his remarks, he lauded the instrumental role played by the WDC within the KPCS framework, acknowledging its significant efforts in effectively preventing conflict diamonds from entering the legitimate global market.

Bin Sulayem articulated a shared vision, stating, “Together we commit to maintaining the credibility and cohesion of the Kimberley Process and maintaining its growth in the years to come.” This statement reflects the profound synergy between key industry players and regulatory bodies in securing the integrity of the diamond supply chain. He further emphasized the UAE’s steadfast dedication to the industry, affirming that as one of the world’s preeminent diamond centers, it will continue to strategically invest and build infrastructure, providing all the necessary resources and support for the diamond industry to flourish and sustain its growth trajectory.

The DMCC’s proactive stance and Dubai’s state-of-the-art facilities underscore its strategic importance in facilitating secure and transparent diamond trade. Its advanced logistical capabilities, robust regulatory environment, and unwavering commitment to international best practices make it an ideal location for critical industry discussions and collaborative initiatives aimed at enhancing responsible business conduct across the globe.

Upholding Integrity: The WDC’s Pivotal Role in the Kimberley Process and Beyond

The World Diamond Council’s function as the “single voice” of the diamond industry within the Kimberley Process Certification Scheme is paramount. The KPCS, established to prevent conflict diamonds from financing wars against legitimate governments, relies heavily on the active participation and guidance of its Official Observers. The WDC acts as a vital bridge between the commercial diamond sector and the governmental and civil society bodies that comprise the KPCS, ensuring that practical industry perspectives and concerns are heard and integrated into policy decisions.

This observer status empowers the WDC to advocate for robust implementation and continuous improvement of the KPCS. By representing the collective interests of diamond miners, manufacturers, traders, and retailers, the WDC plays a crucial role in maintaining the scheme’s effectiveness and adaptability in an ever-evolving global landscape. Their participation ensures that the regulations and guidelines of the KPCS are not only comprehensive but also pragmatic and implementable by businesses of all sizes throughout the supply chain.

The WDC’s efforts extend beyond mere observation; they involve proactive engagement in policy debates, the provision of expert advice, and the championing of initiatives designed to strengthen the fight against conflict diamonds. This proactive stance is essential for maintaining consumer confidence, which is intrinsically linked to the ethical provenance of diamonds. The WDC understands that every diamond purchased should carry with it the assurance of its legitimate origin, contributing positively to the communities where it was sourced.

Diamonds: A Source of Enduring Delight and Sustainable Global Development

In his address, Stephane Fischler, Acting President of the WDC, eloquently articulated the dual impact of diamonds. “Diamonds continue to delight consumers and at the same time they deliver tremendous value, creating employment opportunities for millions of people and providing much needed economic, healthcare and education benefits across every continent on the globe,” he remarked. This statement encapsulates the profound and multifaceted positive influence of the diamond industry, extending far beyond its aesthetic appeal.

The industry is a significant driver of socio-economic development, particularly in many diamond-producing regions. It generates millions of direct and indirect employment opportunities, offering livelihoods and stability to communities. The revenues derived from legitimate diamond mining and trade are often channeled into essential public services, funding healthcare initiatives, building and supporting educational institutions, and investing in critical infrastructure development. These benefits are not confined to a single continent but are distributed globally, underscoring the diamond industry’s substantial contribution to sustainable development goals.

Fischler expressed his satisfaction with the robust attendance at this year’s event, noting, “It was wonderful to see such a strong presence at this year’s event from so many diverse interests and we are all fortunate to work together in an industry that has such a far-reaching impact, sustaining life and bringing joy, to so many around the world.” This sentiment highlights the collective pride and profound sense of responsibility shared by industry participants. There is a clear consensus that these wonderful attributes—the capacity to bring delight and to foster socio-economic well-being—must remain at the absolute core of the industry’s mission. Upholding ethical standards is not merely a regulatory compliance; it is fundamental to preserving the intrinsic value and positive impact of diamonds.

Strengthening the Diamond Supply Chain: Key Discussions and Strategic Initiatives at the AGM

The two-day meeting in Dubai was characterized by intense and highly productive discussions, primarily focusing on “various ways to strengthen the integrity of the complex diamond supply chain,” as conveyed by the WDC. These discussions were critical, given the evolving global landscape and the continuous need to adapt and enhance ethical sourcing practices.

Broadening the Scope of the Kimberley Process: Enhancing Prevention and Reducing Risk

A significant portion of the deliberation centered on innovative ideas to broaden the scope of the KPCS. The aim is to enhance its preventative capabilities and further reduce the risk of systemic violence and conflict being associated with diamonds. While the original mandate of the KPCS was narrowly focused on “conflict diamonds” defined as those financing rebel movements, contemporary geopolitical realities and evolving ethical considerations necessitate a broader perspective.

Discussions explored how the KPCS could potentially evolve to address wider issues of human rights abuses, environmental protection, and illicit trade that might not fall strictly under the traditional “conflict diamond” definition but still pose significant ethical challenges to the industry. By proactively engaging in these conversations, the WDC and its members are seeking to fortify the KPCS against future threats and ensure its continued relevance as the primary mechanism for ethical diamond sourcing. This expansion aims to create a more resilient and comprehensive framework that protects both the integrity of the diamonds and the well-being of the communities involved in their journey.

Embracing Responsible Business Conduct and Robust Due Diligence

Members also delved into universally accepted approaches towards responsible business conduct. These discussions notably referenced guidelines such as those proposed by the Organisation for Economic Co-operation and Development (OECD). The consensus was that such established frameworks should be systematically incorporated into existing due diligence systems across the diamond supply chain.

The integration of these internationally recognized principles is designed to elevate the standards of ethical conduct beyond mere compliance. It encourages businesses to proactively identify, prevent, and mitigate risks associated with human rights, labor practices, environmental impact, and anti-corruption measures throughout their operations. The WDC elaborated that these enhanced approaches will significantly “enhance awareness and responsibility of all participants in the diamond supply chain.” This commitment to robust due diligence ensures that every entity, from the mine to the retail counter, adheres to the highest ethical standards, fostering a culture of accountability and transparency that benefits the entire industry and, crucially, the end consumer.

The WDC System of Warranties: A Cornerstone of Trust and Transparency

A critical component of the industry’s commitment to ethical sourcing is the WDC System of Warranties (SoW). The AGM thoroughly reviewed this system, which was originally created in 2002 under the auspices of the WDC by the World Federation of Diamond Bourses (WFDB) and the International Diamond Manufacturers Association (IDMA). The SoW was specifically designed to comply with, support, and significantly strengthen the KPCS by extending its principles throughout the commercial chain.

The SoW requires all participants in the diamond trade to make an affirmative written statement on invoices, stating that the diamonds being sold are “conflict-free,” based on personal knowledge and/or written guarantees from the supplier. This system acts as a crucial chain of custody, ensuring that the commitment to conflict-free sourcing is carried forward at every transaction point, from rough diamonds to polished stones. It is a voluntary but widely adopted industry self-regulation mechanism that complements the governmental KPCS by placing direct responsibility on individual businesses.

Formalizing the “Duty of Care”: Elevating Ethical Responsibilities

A significant outcome of the AGM discussions related to the SoW was the achievement of a consensus to formalize principles related to the “duty of care” for responsible business practices. The WDC clarified that these principles are specifically intended to raise awareness and incorporate more comprehensive assurances, drawing inspiration from recommendations outlined in various governance-related international and national treaties.

The formalization of these “duty of care” principles signifies a proactive step towards embedding a deeper sense of ethical responsibility within the day-to-day operations of diamond businesses. It moves beyond merely avoiding conflict diamonds to actively fostering positive impacts and mitigating broader risks. Crucially, the WDC emphasized that these principles are designed to be easily incorporated into any size organization, including small and medium-sized businesses (SMEs). This inclusivity is vital, as SMEs form a significant part of the diamond supply chain, and their adherence to high ethical standards is essential for the overall integrity of the industry. By making these principles accessible and implementable for all, the industry aims to create a uniformly high standard of responsible conduct across the entire ecosystem.

Advancing the Kimberley Process: The Call for a Permanent Secretariat

A major development from this year’s meeting was the unanimous support from the WDC Board for the establishment of a KP Permanent Secretariat. This concept, mooted in earlier discussions, gained full endorsement, signifying a critical step towards enhancing the efficiency and long-term stability of the Kimberley Process.

The WDC stated its firm commitment to championing this concept as an integral part of its KP Observer status. The rationale behind establishing a permanent secretariat is multi-faceted and compelling. As elaborated by the WDC, “This position will ensure professionalisation of work and preservation of institutional memory to strengthen the implementation of the KPCS.” Currently, the KPCS operates with a rotating chairmanship, which, while promoting inclusivity, can sometimes lead to discontinuities in policy implementation and a loss of historical knowledge between terms.

A permanent secretariat would provide consistent administrative support, manage ongoing projects, facilitate communication among participants, and ensure the continuity of critical initiatives regardless of changes in leadership. The WDC further explained, “The new position will also ensure continuity and preserve institutional memory between WDC Chairs who serve a two-year term.” This consistent, professional body would greatly enhance the operational efficiency, strategic planning, and overall effectiveness of the KPCS, solidifying its role as a robust guardian against conflict diamonds for years to come.

Ensuring Consumer Confidence Through Unwavering Vigilance and Ethical Standards

In his powerful concluding remarks, Stephane Fischler underscored the collective responsibility inherent in the diamond industry. “Every participant in the diamond supply chain has an obligation to our industry, to global communities, and to citizens, to adhere to only the highest ethical standards and ensure that every diamond is legitimately sourced and conflict free,” he stated. This encapsulates the profound moral imperative that drives the WDC’s mission and the broader industry’s commitment.

Fischler acknowledged the significant progress achieved both this year and in previous years in the fight against conflict diamonds. However, he emphasized that this success is not a endpoint but rather an ongoing journey requiring relentless effort. He asserted, “Though we have achieved a great deal this year and in year’s past, it is only with continued alignment and constant vigilance that our industry can maintain consumer confidence and preserve the legacy of enchantment and awe that only a natural diamond can provide.”

This statement highlights the direct link between ethical practices and the enduring emotional appeal of natural diamonds. Consumer confidence is fragile and must be continuously earned through transparent, responsible, and ethical conduct. The “legacy of enchantment and awe” associated with diamonds—their unique beauty, rarity, and symbolic value—is deeply intertwined with their ethical provenance. The WDC and its partners are acutely aware that preserving this legacy requires an unwavering commitment to vigilance, ensuring that every diamond tells a story of integrity and positive impact.

Future Engagements: WDC AGMs in India and Antwerp

Looking ahead, the World Diamond Council announced the venues for its forthcoming Annual General Meetings, underscoring the global nature of the industry and its commitment to engaging with key diamond centers worldwide. Next year’s AGM, in 2018, is scheduled to be held in India, hosted by the Gem & Jewellery Export Promotion Council (GJEPC). India holds immense significance as the world’s largest diamond cutting and polishing center, playing an indispensable role in the global supply chain.

Following this, the 2019 AGM will be hosted by the Antwerp World Diamond Centre (AWDC) in Antwerp, Belgium. Antwerp stands as a historical and contemporary powerhouse in the global diamond trade, renowned for its expertise in rough diamond trading and its deep-rooted legacy in the industry. These choices of location reflect the WDC’s strategic intent to convene its most important annual discussions in regions that are central to the production, manufacturing, and trade of diamonds, facilitating broader participation and deeper engagement from all segments of the industry.

News Source: gjepc.org