New York: The World Diamond Council (WDC) has marked the 40th anniversary of the United Nations 2021 International Day of Peace with the official public launch of its Upgraded System of Warranties (SoW).
WDC President Edward Asscher said, “For the International Day of Peace 2021, the United Nations set the theme for ‘recovering better for an equitable and sustainable world,’ and called on us all to mark the occasion with acts of compassion, kindness, and hope. We thus felt it an appropriate occasion to launch the upgraded System of Warranties. It reflects our vision for a diamond industry that is not only free of conflict, but through its actions also promotes safe and secure working environments, equal opportunity and proper governance.”
Expanded Scope:
Like the original SoW introduced 18 years ago, the upgraded SoW requires that all sellers of rough diamonds, polished diamonds and jewellery containing diamonds include a declaration on B2B invoices and other transaction documents, such as consignment memos, stating that the goods being sold comply with the Kimberley Process Certification Scheme (KPCS), and thus meet the Kimberley Process’ standard of being conflict-free.
What’s different to the original is that the revised warranty statement additionally includes a commitment that the sellers adhere to the updated WDC SoW Guidelines, which expressly support universally accepted principles of human and labour rights, anti-corruption and anti-money laundering (AML).
Specifically, the WDC SoW Guidelines reference the UN Guiding Principles on Business and Human Rights, the ILO Declaration on Fundamental Principles and Rights at Work, the UN Convention Against Corruption, and national AML guidelines that comply with the FATF’s 40 Recommendations on Money Laundering for Dealers in Precious Metals and Stones.
Annual Self-Assessment:
A critical new element of the upgraded SoW is that all users will be required to register on a dedicated website, and once a year successfully complete an online self-assessment, to gauge their compliance with the WDC SoW Guidelines.
The self-assessment questionnaire is the primary component among a suite of due diligence tools that is provided on the dedicated WDC System of Warranties website: https://www.wdcsow.org.
The self-assessment questionnaire is individualised according to the size of the company or organisation being tested, by the specific range of business activities in which it is involved, and whether it is already compliant with other recognised due diligence systems, like the Responsible Jewellery Council’s Code of Practices or De Beers’ Best Practice Principles Assurance Program.
Supporting Implementation of the Upgraded SoW:
To assist members of the industry to implement the upgraded SoW, the WDC is undertaking an extensive international educational programme, in coordination with diamond bourses and other national and international trade associations. Information about the programme will be made available in the near future.
To enable a smooth transition from the original to the upgraded SoW, there will be a transitional period, during which companies still can decide to accept the older warranties from their clients, of three years in the case of rough purchases and five years in the case of all other purchases.
