The clock is ticking for the global diamond industry as the World Diamond Council (WDC) sets its sights on a pivotal deadline. With just five months remaining until September 21, 2024, the revised System of Warranties (SoW) is poised to make its mark, mandating all rough diamond sales to comply with its provisions.
Established by the WDC, the SoW serves as a crucial mechanism to ensure that diamond trading adheres to the principles of the Kimberley Process Certification Scheme (KPCS). It provides a framework for companies to guarantee the conflict-free origin of their goods and uphold responsible business standards throughout the supply chain.
To issue the revised SoW Warranty Statement, companies must undergo a streamlined process. They are required to register on the dedicated WDC System of Warranties website and complete an online self-assessment questionnaire. Upon successful completion, a unique identification number is issued, which can be affixed to invoices and memos, providing assurance to partners regarding compliance with SoW guidelines.
Tailored to different segments of the diamond and jewelry value chain, the self-assessment takes into account company size and existing adherence to recognized industry standards such as the Responsible Jewellery Council (RJC) Code of Practice and De Beers’ Best Business Principles (BPP). Companies must renew this assessment annually to maintain compliance.
Crucially, the SoW also enhances transparency within the industry. Registered members can verify the compliance status of their suppliers or clients through the SoW website database, fostering accountability and trust.
Elodie Daguzan, Executive Director of the WDC, emphasizes the urgency for industry members to embrace the revised SoW. "We strongly urge all companies, but especially rough diamond traders, to transition to the revised SoW before the September 21 deadline," she states. "Registration is remarkably easy, with a full toolkit available and dedicated support through the SoW Coordinator hotline. By adhering to the SoW, diamond companies demonstrate leadership and uphold industry self-regulation, particularly crucial in an era where due diligence practices are paramount."
As the deadline approaches, the WDC's call to action resonates loud and clear. Industry players must seize the moment, ensuring readiness to navigate the evolving landscape of responsible diamond trading.
