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Industry
Kimberley Process: Where is it Now?
Can the KP expand to protect human rights abuses.
By Shuan Sim
The Kimberley Process Certification Scheme (KPCS) was first conceived when southern African diamond-producing states got together in 2000 in Kimberley, South Africa, to discuss ways to stop the trade of diamonds that were funding civil wars in the region during that time. In 2003, negotiations between governments, the international diamond industry and nongovernmental organizations (NGOs) resulted in the implementation of the KPCS around the world.
This groundbreaking monitoring system sought to prevent rebel groups from selling “conflict diamonds” that would fund war and terrorist activities seeking to undermine legitimate governments in such places as Angola, Ivory Coast and Sierra Leone. The KP has been signed into legislation in 81 countries. It prohibits the trade of diamonds from noncompliant countries within each country’s shores and among members, who account for approximately 99.8 percent of the global rough diamond trade.
Today, many of the conflicts in the southern African region have been resolved and the industry is looking for the KP to expand its reach. Many in the U.S. diamond industry find that consumers want jewelry not tainted by human rights abuses or to have minimal environmental impact — something a KP-compliant stone cannot guarantee. KP leaders have been slow to update what the certification scheme covers in terms of meeting these consumer expectations, leading many in the industry to be skeptical as to whether or not such a goal can be achieved.
“People’s values are expanding and we all have to be in line with it,” notes Toby Pomeroy, an Oregon wholesaler and manufacturer of ethically and sustainably sourced jewelry. He notes that his consumers have become more aware of the social and environmental implications of mining and jewelry manufacturing when making jewelry purchases. “It really began in 2004, with the ‘No Dirty Gold’ website that was talking about the destructive nature of mining,” says Pomeroy, adding that awareness has grown to cover diamond jewelry over the years.
“Millennials are focused generally on choosing responsibly sourced products that are consistent with their values,” says Beth Gerstein, co-founder of Brilliant Earth, an ethically sourced bridal jewelry company in California. “This is even more true for jewelry, since it is such an emotionally driven purchase.”
Gerstein believes that the KP has failed to achieve even its narrow goal of stopping the trade of conflict diamonds, citing a recent report from the Enough Project, a Washington D.C.–based initiative to end crimes against humanity in Africa. It stated that the Central African Republic (CAR) earned up to $5.8 million this year from the illicit diamond trade. “These diamonds likely will be integrated into the certified diamond supply and sold in jewelry stores,” she says.
Leaders of the KP met in Luanda, Angola, in June 2015 for an intercessional meeting to discuss issues to be brought up at the next plenary meeting, scheduled for November 16 through November 20, also most likely to be in Luanda. “Not much was discussed on updating the definition of conflict diamonds during the meeting, save for a presentation on the United Nations’ (UN)voluntary principles on security and human rights,” recalls Dorothée Gizenga, executive director at the Diamond Development Initiative (DDI), an independent observer to the KP. Rather, says Cecilia Gardner, president and chief executive officer (CEO) of the Jewelers Vigilance Committee (JVC), the primary topics on the agenda were mapping out the reintegration of the CAR back into the KP and the nomination of the next chair.
“A lot more work remains to be done in terms of making the KP more efficient,” continues Gardner, adding that the KP had been aware of the need to redefine conflict diamonds for a while, but progress on that front has been slow. Gillian Milovanovic, a former U.S. ambassador to several posts and former chair of the KP, had written in her chair statement back in 2012, “The greatest threat to the diamond revenues of producer nations and the diamond jobs in manufacturing countries is not a change in the definition of conflict diamond but rather the refusal to change.” Today, it is a dead discussion, notes Gizenga.
One of the biggest challenges the KP faces in expanding its scope to include human rights abuses is getting the various member countries to agree that it is a task worth undertaking. “Different countries have different priorities relative to the KP,” says Edward Asscher, president of the World Diamond Council (WDC), also an independent observer to the KP. According to him, some KP members are aware that there is a disconnect between what the KP governs and what the industry wants.
“Countries typically shy away from discussing human rights issues,” says Gizenga. “Some feel that talking about human rights will disqualify them from the KP, as they fear that the discussion then will be generalized to the human rights record of the country at large.” She points out that the process of updating the definition of conflict diamonds to cover human rights abuses has been met with resistance from regions less sensitive about the KP, such as in Asia and Russia. “There are those that don’t even want to hear about human rights,” Gizenga notes. “Doing the right thing is not something everyone adopts as a position. There are those who just want to put in the minimum effort required.” Gizenga believes that such a mentality does not serve the diamond industry well, especially since the U.S. remains the biggest consumer market and awareness of ethical sourcing is growing there.
Despite the KP’s lack of progress on updating its definition to meet industry needs, major players believe that the monitoring system remains effective. “The good thing about the KP is that members can only trade within compliant zones. While the KP does not have any police force, each member country has laws in place to enforce it,” Gardner says. “Goods that are smuggled and have no KP documentation cannot demand the same price as goods that are KP compliant,” Asscher elaborates. “Because of that, the KP creates incentives for countries to crack down on smuggling.”
What is left to be done is to listen to the consumer’s voice, Gizenga comments. “If the push comes from the consumers, then the industry will feel that its economies are being jeopardized and that will spur it to do something.” She notes that in the world of instant communication, everyone could easily become aware of atrocities that happen in the diamond industry. “Bad news travels very fast. We’re not a basic need; we’re a luxury. So there’s always a need for a good reputation,” Gizenga says. “People need to feel good about themselves in order to spend that much money.”
Gerstein agrees that the conversation has to be at an international level because the jewelry industry is global, but the crux remains within purchasing decisions. “It needs to be something couples talk about when they’re shopping for a ring.” These conversations include understanding the provenance of the diamonds or the efforts put back into developing mining communities, such as DDI’s mobile school program for children in mining villages in the Democratic Republic of Congo (DRC).
Jewelers are not waiting for the KP to reinvent itself, though. “I don’t think it should even continue,” says Pomeroy, who opts for other assurances of ethical sourcing, such as the Fairmined standard from the Alliance for Responsible Sourcing (ARM). Bario Neal, a Philadelphia jewelry company promoting responsible sourcing, uses Australian diamonds with Jeweltree certification, while Brilliant Earth makes a guarantee that their diamonds are “Beyond Conflict Free,” by providing traceability data and the environmental records of the mines of each diamond they sell.
In the meantime, these companies have taken consumer education into their own hands, by putting up blogs informing readers about abuses in diamond, gold and colored gemstone mining, or even having conversations about ethical sourcing with their customers. “I’m excited about the Jewelry Industry Summit in 2016,” concludes Anna Bario, co-founder of Bario Neal, who is on the planning committee. The summit, an open forum on sustainability and responsible sourcing in the jewelry industry, will be held in New York City and is crowd funded. “I’m looking forward to the possibility of having a really open conversation about the challenges in the industry regarding responsible sourcing.”Article from the Rapaport Magazine - September 2015. To subscribe click here.
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