International industry cooperation

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.

 

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Diamond Producers Association

In 2015, in alliance with the world’s other major diamond mining companies, ALROSA established the Diamond Producers Association (DPA) aiming to promote diamonds as a category in global markets in order to maintain and increase demand and ensure sustainable development of the diamond industry.

Since 2017, ALROSA has sizably increased its contribution to DPA funding, in collaboration with other DPA participants and industry partners creating a consolidated budget of USD 60 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.

Also the Company is an active participant in a number of DPA global projects in different areas, including differentiation between natural and synthetic diamond markets, unification of diamond nomenclature and terminology, ensuring that natural and laboratory-grown stones do not get mixed in the pipeline, diamond industry advocacy, and promotion of diamonds as a category in regional markets.

This page was last updated on 13 July 2018 at 14.47