The World Diamond Council at 25: Thoughts on Navigating New Frontiers for Ethical Diamonds

As we mark 25 years since the World Diamond Council (WDC) emerged from the groundbreaking World Diamond Congress in July 2000, we reflect on an era marked by significant achievements and evolving challenges. Born from the urgency of combating “conflict diamonds” (as an offspring of the historic Kimberley Technical Forum in South Africa on 11-12 May 2000 - that led to the Kimberley Process), the WDC has played an instrumental role as the diamond industry's official voice within the Kimberley Process Certification Scheme (KPCS), dramatically reducing conflict diamond flows to less than one percent of global production.

Yet, even as we applaud this progress, it is essential to recognise that the diamond industry faces new complexities that demand urgent attention. Chief among these is the WDC's critical role in negotiating with the United States government to seek exemptions from impending import tariffs on diamonds. These tariffs, if implemented, could dramatically reshape the global diamond market, affecting producers, traders, and consumers worldwide. How the WDC manages this crucial negotiation will undoubtedly become a defining measure of its diplomatic and strategic acumen.

Moreover, another equally pressing issue is the ongoing responsibility the WDC carries in chairing the Kimberley Process's critical task of revising the definition of "conflict diamonds". Originally tailored narrowly to the financing of conflict by rebel movements, this definition no longer captures the realities of contemporary conflicts. Today's conflicts are complex, involving state and non-state actors, human rights abuses, environmental harm, and financial crimes. It is imperative that the WDC guides this necessary revision with clarity and courage, broadening the scope to ensure alignment with contemporary ethical and humanitarian standards.

However, the path to true transformation requires the Kimberley Process itself to evolve beyond its government-led, geopolitically constrained structure. The past decades have shown the limitations of a consensus-based governmental system, where political interests frequently override ethical imperatives. The Kimberley Process, while historic in its conception and essential in curbing rebel-financed conflict diamonds, was never designed to be the vehicle for holistic ethical certification. Ethical sourcing encompasses environmental stewardship, human rights, labour conditions, and community beneficiation and development, which are realms that demand speed, innovation, and adaptability.

This is where an industry-led initiative, driven by the WDC, offers an unparalleled opportunity for agility and ambition. There is significantly more room for flexibility in an industry-run framework than within the confines of the Kimberley Process. The WDC must now position itself to lead a comprehensive, independent, and enforceable ethical certification system, rooted in the System of Warranties (SoW), yet elevated to a global standard that can evolve quickly and respond decisively.

Here lies one of the most profound opportunities for industry-wide transformation: recognising that the Kimberley Process Certification Scheme only applies to the trade in rough diamonds. It does not govern polished diamonds or diamond-set jewellery, leaving a significant ethical gap across the wider diamond value chain. This is precisely where the WDC's System of Warranties becomes a critical instrument. The SoW, unlike the KPCS, extends its assurances to polished diamonds and diamonds set in jewellery. It is also digital in nature, allowing for seamless integration with modern traceability/trackability technologies such as blockchain.

Nevertheless, the SoW's transformative potential remains underutilised. Currently, based on self-assessment and voluntary compliance, it lacks formal penalties for non-compliance. This undermines its credibility and limits its ability to enforce true accountability. To be truly effective, the SoW must not only expand in scope but also adopt a regime of prohibitive penalties that deter bad actors. Penalties should include financial sanctions, certification revocation, suspension from global trade networks, and reputational exposure. Membership in the SoW is not yet universal. To become the global gold standard in diamond ethics, the SoW must expand its reach to encompass all legitimate actors in the diamond-producing, trading, and manufacturing sectors.

A bold yet achievable vision would be to evolve the SoW into a comprehensive and enforceable global ethical compliance regime. This could be achieved through a phased approach:

Phase 1: Strengthening Internal Integrity

Introduce enforceable penalties for non-compliance, including substantial financial sanctions, suspension from participation in major tenders and exchanges, and permanent delisting of repeat offenders. These should be transparently published to deter malpractice. Enhance the digital infrastructure to include third-party audits, blockchain-anchored records, and automated compliance tracking.

Phase 2: Universal Membership Expansion

Launch a global outreach campaign targeting all diamond producers, traders, and manufacturers, including small and mid-sized firms. Offer incentives for early adoption, such as brand certification, digital marketing assets, ESG-aligned financing options, and priority market access. Concurrently, initiate dialogue with regional industry bodies such as the African Diamond Producers Association (ADPA) and major government stakeholders in diamond economies to consider formal affiliation with the SoW.

Phase 3: Institutional Integration and Hybrid Governance

Establish a new, hybrid governance model for the SoW that incorporates representatives from industry, civil society, and willing governments. This structure would mirror the tripartite model of the Kimberley Process but be steered by the private sector, thereby bypassing geopolitical gridlocks and preserving decision-making agility. Over time, this model could create a global consortium for diamond ethics, potentially amalgamating or coordinating with existing multilateral platforms.

Phase 4: Public Launch of a Global Ethical Diamond Mark

The final phase would involve the international launch of a unified, consumer-facing mark of ethical assurance backed by the evolved SoW. This mark would guarantee full traceability, ethical sourcing, and community development, supported by digital twins and blockchain-based storytelling for every diamond or mine footprint in the case of diamond parcels. Retailers, manufacturers, and consumers alike would benefit from complete transparency and an authenticated ethical narrative.

To achieve this transformation, the WDC must further strengthen its SoW as the industry's most powerful ethical lever. First introduced in 2002 and updated in 2018 to include stringent commitments to human and labour rights, anti-corruption, and anti-money laundering practices, the SoW must now move from voluntary to verifiable and from aspirational to authoritative. It is time for the diamond industry to make ethical sourcing an enforceable standard with real consequences.

Furthermore, empowering artisanal and small-scale mining communities through structured formalisation, fair wages, safe working conditions, and community development initiatives must become central to WDC's vision. By championing these vulnerable communities, the WDC can ensure a truly inclusive approach to diamond mining and marketing, transforming ethical sourcing from a compliance checkbox to a core business strategy.

We propose that the future resilience and desirability of natural diamonds will be built upon the industry's ability to anticipate and respond proactively to these emerging challenges. The WDC's leadership, particularly over the next critical years, will be pivotal.

In essence, the World Diamond Council stands at a historic crossroads. Its legacy will be defined by how decisively it acts on current challenges, particularly around tariff negotiations, the critical expansion of the conflict diamond definition, and the overarching transformation towards industry self-regulation. Let this 25th anniversary mark the beginning of a new era, one that fully embraces transparency, accountability, and ethical integrity. Through the bold enhancement and global rollout of the System of Warranties, the WDC can deliver nothing short of an industry-wide "Aha" moment: a revelation that ethical excellence, when rooted in agility, inclusivity, and enforcement, is the foundation upon which the future of natural diamonds must be built.