Written by Julie de Los Rios - Thursday, June 15, 2023
From Marylin Monroe to Rihanna, diamonds are forever. And with good reason! They take several millions or even billions of years to form. Just like everything that fascinates us, natural diamonds are a source of rumour and myth. Critics have their own – often unfounded – arguments.
In response to misinformation, especially on social media, the
"At a time when consumers are more inquisitive and aware than ever, they want to know about the values and the environmentally responsible practices of businesses, and of the industry as a whole, from which they make their purchases," says David Kellie, CEO of the NDC, revealing research conducted by respected third-party organisations around the world (Gemological Institute of America (GIA), Bain & Company, NASA) as well as discussions with industry experts (Paul Zimnisky) and independent sustainability consultants (Eco-Age).
As part of the Natural Diamond Council's transparency policy, this report has one purpose: to educate consumers so that they can make decisions based on facts and not on beliefs about diamonds. Let's take a look at 9 common misconceptions.
FALSE: Synthetic diamonds, which are mass-produced in a matter of weeks – unlike natural diamonds that take several billion years to form beneath the earth's surface – can be detected using professional verification tools. They have characteristics specific to their rapid growth in an artificial environment. (Source: GIA)
TRUE: The challenge facing synthetic diamond manufacturers is to reproduce the natural diamond formation process at an accelerated rate, using temperatures amounting to 20% of the sun’s surface temperature. The consequence is an increase in electricity consumption, particularly in some countries. Over 60% of synthetic diamonds are produced in China and India, where 63% and 74% of grid electricity comes from coal. That's why it's difficult to make a simplistic case against natural diamonds, claiming that they are less sustainable than synthetic diamonds. It all depends on the production process and location, the energy sources used, productivity capacity and sustainability practices. (Sources: NASA, GIA)
TRUE: Natural diamonds are formed over millions or even billions of years, in limited areas of the Earth's mantle, at extreme temperatures and pressures. These factors make natural diamonds a limited, and therefore rare, natural resource. Global recovery of natural diamonds peaked in 2005, then has dropped by more than 30% over the last 16 years.
The scarcity of natural diamonds has been exacerbated by the closure of historic mines and the challenge of rationalising the economic investment required to find and exploit kimberlite. Today, the annual recovery of 1-carat natural diamonds is equivalent to the volume of a full Pilates ball.
TRUE: Between 2016 and 2013, the average price of a 1.5-carat synthetic diamond decreased by 74%, thus widening the gap with the price of natural diamonds, which has increased by an average of 3% a year, despite price fluctuation over the last 35 years.
FALSE: Under the Kimberley Process, mandated by the United Nations (UN) and the World Trade Organisation (WTO), the trade in rough diamonds is strictly regulated to ensure that there is no conflict. At the same time, initiatives such as the Responsible Jewellery Council (RJC), the world's leading sustainability standards organisation for the jewellery and watchmaking industry, are working towards responsible sourcing, notably through third-party verified certifications. To this end, brands, retailers and jewellers are implementing ethical sourcing protocols and policies. Finally, the natural diamond industry is continuing and accelerating efforts in terms of traceability. It is exploiting technologies such as blockchain to ensure supply chain transparency.
FALSE: The world of natural diamonds protects the biodiversity of an area almost 4 times the size of the one it uses, equivalent to the size of New York, Chicago, Washington and Las Vegas combined. Some other figures? 99% of the waste from the recovery process is rock. 84% of the water used for recovery is recycled. In addition to complying with global environmental standards, the natural diamond industry is also subject to strict national laws. Before a diamond can be recovered, governments must grant environmental permits, with a legal obligation to ensure ongoing monitoring, produce reports and put closure plans in place.
The Diamond Route is a network set up by the De Beers Group, a leading diamond company. Its purpose is to protect essential wildlife habitats in South Africa and Botswana (Sources: NDC Member, ERM)
TRUE: The industry is committed to decarbonisation, in line with global climate objectives. Members of the Natural Diamond Council are developing renewable energy projects, particularly in developing countries, as well as projects to offset carbon emissions.
Companies such as the De Beers Group have committed to being carbon neutral by 2030 and Rio Tinto to reaching net zero emissions by 2050. The De Beers Group has also partnered with Kelp Blue to explore the potential of kelp to store carbon while improving marine health.
Members of the Natural Diamond Council are also involved in carbon sequestration programmes. For example, by using kimberlite, the rock that harbours diamonds.
As a reminder, a one-carat polished natural diamond generates carbon emissions equivalent to driving an average-sized petrol car for 426 km.
FALSE: The industry supports 10 million people worldwide. Up to 80% of the value of rough diamonds can stay in local communities in the form of purchases, jobs, social programmes, investment in infrastructure, as well as taxes, royalties and dividends paid to governments. For NDC members, 85% of purchases are local.
In Canada for example, the natural diamond industry contributes to 24% of total GDP in the Northwest Territories (NWT). In Botswana, Africa, diamonds accounted for 33% of GDP in 2021. Revenues from natural diamonds help fund a school system that provides free education for all of Botswana's children. (Sources Government of NWT, Canada)
FALSE: As part of their mining operations, NDC members ensure that working conditions meet the highest global standards with fair pay, respect for health, safety and protection of human rights and benefits. In 2019, NDC companies paid on average up to 64% more than the average national wage. Finally, the companies use modern mining equipment and practices, striving towards a zero-injury workplace.
In conclusion, the modern diamond industry suffers from misconceptions, linked to past mistakes and practices. This historical legacy still has an impact today, arousing public distrust. However, even though there’s room for improvement, the industry has established a number of measures to ensure an ethical, social and sustainable approach to the recovery of natural diamonds. We also invite you to read our article:
Article produced in collaboration with the