Bourses Sign Up to Ethics Resolution

RAPAPORT… The World Federation of Diamond Bourses (WFDB) has adopted a document calling for members to comply with standards of ethics.

The decision took place at the WFDB president’s meeting in Dubai last month, the umbrella organization for diamond exchanges said in a recent statement. The “Guidelines on Responsible Business Practices” deal with responsible sourcing throughout the supply chain, human rights, labor practices, environmental protection, and adherence to anti-money laundering (AML) regulations. They also mandate full disclosure of lab-grown diamonds, treatments and simulants.

Members of WFDB bourses must comply with the resolution or face disciplinary action, the federation explained.

“Ethical diamonds are also the norm with consumers now,” WFDB president Yoram Dvash said at the meeting. “They want our product to have respected human rights, observed fair labor practices, and have been mindful of the environment. All this with complete transparency in the process chain.”

Dvash urged trade bodies to push the industry in this direction. He cited as an example the Israel Diamond Exchange (IDE) — of which he is a former president — where a successful campaign encouraging disclosure of transactions resulted in tax authorities lowering the industry’s risk rating.

The meeting also featured an address by Peter Karakchiev, Alrosa’s head of international relations, who predicted that responsible practices would transform into the industry’s number-one concern.

“Sustainability will become the non-finance license to do business in five years,” Karakchiev said.

Other speakers were Diamantino Pedro Azevedo, Angola’s minister of mineral resources, petroleum and gas; Ahmed Bin Sulayem, executive chairman of the Dubai Multi Commodities Centre (DMCC); Susanne Swaniker, De Beers’ chief financial officer for the midstream; Gaetano Cavalieri, president of the World Jewellery Confederation (CIBJO); and Edward Asscher, president of the World Diamond Council (WDC).

The event was also the first time that the WFDB had invited representatives of the Young Diamantaires organization to join the executive committee meeting and the working session.

Vinod Kuriyan contributed to this report.

Image: Participants at the president’s meeting. (WFDB)