Diamond traceability, ESG system to launch next year

A certification platform for diamonds and jewellery that combines sustainability certification and traceability is on track to launch next year, according to the companies behind the effort.

It will combine SCS Global Services' sustainability certification with iTraceiT’s traceability technology to offer detailed information about the origin, journey and sustainability impact of diamonds and other jewellery components across the supply chain.

The collaboration is expected to result in a final certificate release in 2025, with development already underway, according to the partners.

The collaboration comes in response to "growing consumer demand to understand the entire journey of the products they buy, including their social and environmental impact," they added. Using the tool, retailers and brands will be able to offer "clear and verifiable sustainability information to their customers."

Some diamond companies have already developed traceability systems for diamonds to tackle the illicit trade in conflict or blood diamonds, which are mined in war zones. De Beers, for example, has a blockchain-based system called Tracr that gives each diamond a unique identity as it is mined and activated it in response to the Russian invasion of Ukraine.

Sustainability is also a big issue for consumers, who don’t want stones or jewellery that contribute to environmental degradation through depletion of natural resources, polluting practices or an impact on biodiversity impact, for example, and/or human rights and labour abuses.

Regulators meanwhile are also taking on the issue, including the EU which has introduced a mechanism for tracing imports of rough and polished natural diamonds into the EU that is due to come into effect on March 1 next year.

"Consumers today are looking for more than just quality products," said Matt Rudolf, chief executive of SCS. "They want verified information about the origins of products and the impact of their manufacturing. By working with iTraceiT, we’re helping the diamond and jewellery industry meet those expectations by offering clear, credible insights into the sustainability of all jewellery components."

Meanwhile, Frederik Degryse, CEO of iTraceiT, remarked: "I have always believed that traceability is essential for any ESG reporting. You need to know what journey a product went through before you can show its carbon footprint or demonstrate that workers were fairly compensated. By combining our traceability platform with SCS’s audit expertise, we will provide a comprehensive solution for the industry."