Today the global diamond sector faces a number of challenges related to securing conflict-free origin of diamonds and responsible sourcing, promoting transparency, dispelling industry misperceptions and raising public awareness about its work. They can seriously undermine the sustainable development of the industry and, therefore, call for concerted actions. Thus, ALROSA is engaged in establishing and enhancing the efficiency of international industry mechanisms designed to promote responsible business practices, develop industry self-regulation and strengthen consumer confidence within the framework of multilateral cooperation in international industry organizations.
Kimberley Process and World Diamond Council
ALROSA is actively involved in the Kimberley Process (KP), permanent intergovernmental forum aimed at preventing conflict diamonds from entering legitimate global trade in rough diamonds. The Company participates in the work of KP within the delegation of the World Diamond Council (WDC), industry’s single representative with an Observer status. ALROSA has always been represented on its board since the establishment of the organization in 2000. In 2016-2017, the Company was the WDC president.
ALROSA takes part in the KP Intersessional and Plenary meetings, day-to-day activities of its working bodies as well as peer review visits to check the members for compliance with the KP minimum requirements.
In 2017, within the framework of the current KP review cycle, ALROSA largely contributed to the industry’s consolidated proposals on the KP reform aimed at enhancing its work which have been included into the agenda of the Ad Hoc Committee on Review and Reform.
Under the ALROSA presidency, WDC has launched the process of reforming its System of Warranties that extends the effectiveness of the KP Certification Scheme beyond the export and import of rough diamonds and covers domestic trade encompassing all the segments of diamond pipeline from mine to retail. The new System of Warranties is expected to reflect clear universal requirements to all participants on human rights, labour rights, fighting against corruption and money laundering, due diligence in respect to artisanal and small-scale mining and measures to help formalize this sector, as well as a robust and workable verification mechanism.
Responsible Jewellery Council
In 2016, ALROSA joined the Responsible Jewellery Council (RJC), international not-for-profit organization established to strengthen consumer confidence in jewellery supply chain, enhance corporate social responsibility, protect the environment and promote ethical business conduct.
In 2017, ALROSA was elected to the RJC board of directors. Following the results of an independent audit in December 2017 ALROSA was certified as compliant with the RJC Code of Practices for the period of three years. In May 2018 at the RJC annual general meeting held in Moscow an ALROSA representative was elected as RJC Vice Chairman.
To contribute to the objectives of the organization ALROSA participates in further development of the RJC standards, primarily from the perspective of due diligence for diamond supply chains.
Natural Diamond Council
In 2015, in collaboration with the world’s other major diamond mining companies, ALROSA established the Diamond Producers Association. Rebranded under a new name in June 2020 as the Natural Diamond Council (NDC), the organisation promotes the desirability of diamonds and protects the integrity of the diamond jewellery industry. It does so by providing transparency and insight on ethics, sustainability and progress of the sector. As the only consumer-facing body within the industry, via its consumer brand ‘Only Natural Diamonds’, the NDC is also the go-to digital publisher for innovative content aimed at inspiring, educating and supporting consumers, promoting the values and heritage of diamonds, as well as sharing the significant innovation happening throughout the world of diamond jewellery.
Since the inception of the organisation ALROSA has sizably increased its contribution to NDC funding, in collaboration with other NDC participants and industry partners creating a consolidated budget of USD 70 mln. This has enabled to build up the effort to promote generic diamond marketing in the US, as well as gradually expand its scope to embrace India and China.
The Company is also an active participant in a number of NDC projects in various areas aimed to protect of the integrity of the natural diamond market, including cooperation on health and safety, protection of the environment, ASSURE diamond verification program, unification of diamond terminology and diamond industry advocacy.