Diamond council urges industry to transition to revised System Of Warranties urgently

24th April 2024 By: Darren Parker - Creamer Media Contributing Editor Online

Diamond council urges industry to transition to revised System Of Warranties urgently

The World Diamond Council’s (WDC’s) revised System of Warranties (SoW) is set to reach its first critical deadline on September 21, when it becomes obligatory for all rough diamond sales. 

 “We strongly urge all companies, but especially . . . rough diamond traders, to transition to the revised SoW, if they have not done so yet, to be ready for the September 21 deadline,” WDC executive director Elodie Daguzan said on April 24.

The global mechanism created by the organisation is meant to help companies provide assurance that the goods they are trading are in alignment with the Kimberley Process Certification Scheme, by passing down the supply chain the warranty of a conflict-free origin, and adherence to other responsible business standards.

To be able to issue the revised SoW warranty statement, a company must register on the dedicated WDC SoW website and complete an online self-assessment questionnaire.

Upon successful submission of the questionnaire, the company will be issued a unique identification number that can be applied on all their invoices and memos, so that their business partners can confirm their compliance with the SoW guidelines.

The self-assessment is customised according to the segments of the diamond and jewellery value chain in which the industry member is involved, the size of their company and whether they are already compliant with other recognised industry standards, such as the Responsible Jewellery Council code of practice and De Beers’ best business principles.

Diamond trading companies are required to renew the self-assessment each year.

SoW-registered members of the industry are, in turn, able to confirm whether their suppliers or clients are also compliant with the SoW by searching the SoW website database through their account, thereby providing added transparency to the mechanism.

“Registration is remarkably easy. There is a full toolkit available as well as an SoW Coordinator who operates a hotline for anyone requiring support.

“By abiding to the SoW, diamond companies demonstrate leadership, upholding the baseline of industry self-regulation at a time where due diligence practices have never been so important,” Daguzan said.