Business Responsibilities

To maintain and enhance consumer trust in, and the reputation of, the gem diamond industry, there must be a commitment to combating dishonesty and fraud in all business transactions.

There must be a programme in place that monitors the effectiveness of these commitments and to support all workers in that endeavour.

All businesses should adhere to national laws. Where no appropriate national laws exist, the appropriate United Nations and/or International Labour Organisation (‘ILO’) Conventions and Declarations should be followed. Furthermore, where local laws stipulate certain general standards but provide that certain businesses (for example, small businesses) are subject to lower or no set standards, you must demonstrate compliance with the general standards.

No practice or conduct must be engaged in that brings the diamond industry into disrepute, including but not limited to:

• Any activity that results in a material criminal conviction.
• Buying and trading rough diamonds from areas where this would encourage or support conflict and human suffering.
• Practices which intentionally or recklessly endanger or harm the health and welfare of individuals.
• Non-compliance with international best practice and the related regulatory framework with respect to the environment.
• Any conduct that seeks to deceive, mislead, cheat or delude the consumer including:
• Any undeclared or misrepresented trade in treated diamonds, whole or partial synthetic diamonds, or diamond simulants;
• Any trade misrepresenting the colour, clarity, caratage, cut and provenance of a diamond.

Demonstrate commitment to responsible business practices both internally to employees, and publicly to stakeholders. 

A policy is required to demonstrate commitment to responsible business practices for all parts of the business. It should be documented and communicated to employees in addition to being made publicly available.

Senior management should continuously monitor and document the implementation of the policy and procedures along with the performance throughout the business. A formal performance review should be undertaken and documented to identify any gaps that occur between the policy and the business practices. This review should take place frequently throughout the year, potentially as part of the board meetings, and any suggested changes should be either deemed unnecessary or implemented not only in the specific entity but also in any other relevant parts of the business.

The entity should identify issues relevant to the RJC Code of Practices Membership through their own operations, or, through involvement in community initiatives and communicate their policies or positions along with any actions that were taken or objectives to their stakeholders.

Entities must implement effective policies and adequate procedures to prohibit involvement in bribery in all business practices and transactions that are carried out by them, or on their behalf by Business Partners. They will not offer, accept or countenance any payments, gifts in kind, hospitality, expenses or promises as such that may compromise the principles of fair competition or constitute an attempt to obtain or retain business for or with, or direct business to, any person; to influence the course of the business or governmental decision-making process.

Entities will provide confidential systems for the reporting and investigation of allegations of attempted bribery or inappropriate gifts within their organisation and will apply the appropriate sanctions for bribery and attempted bribery in all forms. This will include clear communication to their workers that they will not suffer retaliation for such reports or refusing to pay a bribe or facilitation payment even if this action may result in the entity losing business.

Where entities have not yet been able to eliminate facilitation payments, they will implement appropriate controls to monitor, oversee and fully account for all facilitation payments made. They will work to ensure that they are of limited nature and scope, with an ultimate objective to eliminate all facilitation payments.

Compliance is required with national, and where appropriate international, legislation and regulations with respect to money laundering, terrorism financing, bribery, corruption, smuggling, embezzlement, fraud, racketeering, transfer pricing and tax evasion.

If entities and/or facilities are not included in any other financial accounts (for example, but not limited to, those of a parent company), they will need annual independently audited financial accounts, and will need to demonstrate that the audit was carried out by a properly qualified auditor to international accounting standards and that the appointment of the auditor was free of any bias or influence.

Financial auditors should be alerted to applicable national legislation imposing special anti-money laundering/combating the financing of terrorism compliance rules on dealers in precious stones or high value goods.

Where applicable, entities will need to demonstrate that they have taken appropriate action to comply with:

• All relevant provisions of the USA Patriot Act, specifically including the Regulations for Jewellers and Metal Dealers issued by the U.S. Treasury’s Financial Crimes Enforcement Network (FinCEN) in accordance with USA Patriot Act Section 352;
• The EC Directive on Prevention of the use of the Financial System for the purpose of Money Laundering (EC Directive 2001/97) as transposed into national legislation of Member States of the European Union in which such entities are incorporated or carrying on diamond-related business.
• To the extent that the OECD Guidelines for Multinational Enterprises are incorporated into or otherwise reflected in national legislation of countries in which an entity is incorporated or operates; compliance is required with the Guidelines.

Where applicable, entities will need to demonstrate that they have taken appropriate action to satisfy:

• United Nations Convention Against Illicit Traffic in Narcotic Drugs and Psychotropic Substances, also known as the 1988 Vienna Convention.
• The relevant provisions in the FATF 40 Recommendations and 9 Special Recommendations that are applicable to the Designated Non-Financial Business Professions (DNFBP), which includes dealers in precious stones (i.e. diamantaires and jewellers).
• Entities must apply high standards in the selection, screening and acceptance of suppliers and purchasers of rough and polished diamonds, ensuring anti-money laundering policies and procedures are adopted, mandating due diligence during the selection process, continued transaction monitoring and relevant and appropriate worker training.

Entities must demonstrate that they are fully informed of all relevant legislation and regulations regarding bribery and facilitation payments in all relevant jurisdictions ensuring policies are developed and clearly explained to the relevant employees.

The definition of ‘Conflict Gem Stone Diamonds’ agreed by the Kimberley Process must be adopted. That definition is as follows:

‘Rough diamonds used by rebel movements or their allies to finance conflict aimed at undermining legitimate governments, as described in relevant United Nations Security Council (UNSC) resolutions insofar as they remain in effect, or in other similar UNSC resolutions which may be adopted in the future, and as understood and recognised in United Nations General Assembly (UNGA) Resolution 55/56, or in other similar UNGA resolutions which may be adopted in future.’

The World Diamond Council proposed system of warranties must be adopted and all buyers and sellers of both rough and polished diamonds must make the following affirmative statement on all invoices:

‘The diamonds herein invoiced have been {sourced}* purchased from legitimate sources not involved in funding conflict, in compliance with United Nations Resolutions and corresponding national laws {where the invoice is generated}**. The seller hereby guarantees that these diamonds are conflict free and confirms adherence to the WDC SoW Guidelines.’

* {sourced} - may be used by companies that do not purchase from open market, but source and aggregate diamonds from production facilities that are owned/partly owned by them {where the invoice is generated} - may be used by companies if they specifically want to reference the country of invoice issuance

The rules of the Kimberley Process and the requirements of the World Diamond Council shall be effectively communicated to the relevant workers involved in the buying and selling of rough diamonds and/ or the buying and selling of polished diamonds and/ or diamond jewellery.

In addition, each company trading in rough and polished diamonds is obliged to keep records of Kimberley Process Certificates and warranty invoices received, and the warranty invoices issued, when buying or selling diamonds. This flow of certificates and warranties in, and certificates and warranties out, must be audited and reconciled on an annual basis by the company’s/entity’s/facility’s own auditors. If asked by a duly authorised government agency, or Third Party Auditor, these records must be able to prove that the company/entity/facility is in compliance with the Kimberley Process.

The company/entity/facility must have a system or process in place to maintain awareness of and comply with applicable national and international sanctions that prohibit transactions or trade involving diamonds with sanctioned individuals, entities or organisations.

The company must comply with the System of Warranties Guidelines which include adherence to the protection of human rights, labour rights, anti-corruption practices and anti-money laundering, and must complete a self-assessment once a year. The company must also include the SoW warranty statement, which contains a commitment that buyers and sellers adhere to the updated System of Warranties Guidelines, with the wording of the statement in full.

Groups/entities/facilities must implement robust due diligence practices in accordance with the OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas (the ‘OECD Guidance’) or other equivalent due diligence frameworks in ways appropriate to their size and circumstances.

Groups/entities/facilities should approach these requirements through a group-wide approach to their group of companies, while accommodating for the individual contexts of various subsidiaries as relevant within the group and framework to responsible sourcing. For example, a group of companies predominantly focused on cutting and polishing diamonds but with a single subsidiary in jewellery manufacturing should maintain its focus on its cutting and polishing entities, but ensure and demonstrate that consideration for jewellery manufacturing has been applied to its policies, procedures, training, risk assessment and reporting.

STEP 1: MANAGEMENT SYSTEMS

The group/entity/facility must adopt and implement a supply chain policy with respect to sourcing from conflict-affected and high-risk areas, consistent with the OECD Guidance. This policy can be embedded within a broader responsible sourcing policy.

The supply chain policy must be endorsed at the highest levels of the organisation, such as through executive level governance committees or executive level sponsorship.

A senior manager must be appointed, and have sufficient seniority, responsibility authority and experience to manage and implement the supply chain policy and its accompanying procedures.

Appropriate resources should be available to implement the policy and procedures.

The senior manager’s role will include the following:

• Lead the supply chain policy’s development and implementation;
• co-ordinate and communicate the policy’s implementation across the organisation;
• work to ensure all relevant suppliers respect the policy, and review business relationships with suppliers based on risk levels;
• carry out internal and (if relevant) external training;
• respond to identified supply chain risks;
• publicly report on due diligence every year and
• review and propose improvements to the due diligence system.

The group/entity/facility must publicly communicate their policy position on sourcing from conflict-affected and high-risk areas in ways that are appropriate to the nature and scale of the organisation, such as through their company website.

Where relevant, the group/entity/facility will need to implement its policy requirements within relevant contracts, such as with suppliers.

The group/entity/facility can align other due diligence practices with the implementation of the policy, such as (and not limited to) its human rights due diligence processes and Know Your Counterparty processes.

The group/entity/facility shall ensure that they identify relevant employees that would require training on this policy, such as buying teams, invoicing teams, sales and marketing teams.

The group/entity/facility shall ensure that the relevant personnel are trained on sourcing practices and that ongoing training is implemented, either based on a timeframe and/or on changes to the policy to ensure that they are aware of the group’s requirements.

The group/entity/facility needs to maintain records of all aspects of its sourcing due diligence activities for a minimum of five years, including but not limited to, invoices received, correspondence with suppliers, supplier contracts, supplier due diligence research, country risks and questionnaires.

The group/entity/facility shall seek to establish strong relationships with its suppliers through longer term contracts rather than short one-offs, and shall define the instances when it will terminate or suspend a supplier.

The group/entity/facility will communicate its due diligence requirements and its supply chain policy requirements to its suppliers through appropriate measures, including email updates, training for suppliers, examples of requirements.

The group/entity/facility will start to implement contractual provisions amongst its suppliers when up for renewal to include provisions relating to the sharing of due diligence information.

The group/entity/facility shall, where practical, encourage suppliers to include provisions in their own contracts with their suppliers.

The group/entity/facility will establish an effective grievance mechanism that offers all parties, including affected stakeholders and whistleblowers, a way to raise concerns about the business, organisations, individuals or activities in its supply chains. The grievance mechanism can be the same one as that required for human rights due diligence.

The group/entity/facility shall ensure that:

• The mechanism is easily accessible to all who may wish to use it: this means allowing for grievances to be submitted in multiple ways—by email, letter, telephone and in person.
• Whistle-blowers will be protected by allowing them to remain anonymous.
• Accurate and updated log of all grievances and follow-up actions is maintained.
• A transparent process and procedure for responding to grievances is established that ensures all grievances are responded to in a timely and efficient manner.
• Grievances are tracked with a verifiable corrective action that can be monitored and assessed.
• If a grievance is dismissed without any follow-up, accurately log and record full justifications and details of any investigation.

The group/entity/facility shall commit to and undertake a formal review of its policy and procedures on an annual basis.

STEP 2: IDENTIFY AND ASSESS RISKS

The company/entity/facility must establish which position they are in within the diamond value chain. Depending on its position within the diamond value chain, the group/entity/facility must seek to secure the appropriate product information from each of its diamond suppliers, while maintaining appropriate confidentiality in respect of sensitive information as appropriate.

Information can be sought through many ways including company websites, checklists, forms, invoices, establishing contractual obligations and collecting and documenting information received during meetings.

The group/entity/facility shall keep records of all information obtained and efforts to obtain information for a minimum period of five years.

The group/entity/facility shall commit to making the information it has obtained available to its buyers further downstream and auditors upon request. In instances when suppliers are unable or unwilling to provide requested information, the group/entity/facility shall seek to exploit all possible opportunities with these suppliers to obtain the information. In some instances, this will be easy to resolve while other instances will require complex solutions. All options should be exhausted prior to making a decision to terminate or suspend the supplier and records maintained of the efforts undertaken.

The group/entity/facility shall undertake a process to identify any red flags within its supply chain based on the due diligence information received. A red flag is a warning or indicator of a potential risk. In the context of due diligence, a red flag can be a location, supplier or circumstance that triggers a need for enhanced due diligence (that is, further investigation).

If the group/entity/facility has been able to reasonably determine that red flags are not present in its supply chain, then the sources can be considered low risk, requiring minimal further action other than ensuring that its company management system continues to work effectively and that due diligence practices are publicly reported on.

STEP 3: DESIGN AND IMPLEMENT RISK MITIGATION

Where red flags are identified, the following steps must be undertaken, depending on the type of company the group/entity/facility is:

• Mapping the factual circumstances of red-flag territories for current and future operations by gathering available information, for example through:
• An in-depth review of the context of all red-flag locations
• Generating or reviewing reports, maps and relevant literature on extraction, transport and trade in the red-flag location.
• Engaging with stakeholders by consulting, for example, with local and central governments, local civil society organisations, community networks, etc.
• If sourcing from other upstream suppliers, reviewing their working policies and systems (eg through desktop research)
• On-the-ground assessments to generate and maintain information on how rough diamonds and coloured gemstones are extracted, traded, handled and exported. Whether the Group/entity/facility is a mining company only dealing with their own production or a mining company, rough trader, exporter or importer sourcing from other miners, the assessment should be carried out ensuring that:
• The assessors are independent from the activity being assessed and free from conflicts of interest.
• The appropriate level of competence and expertise is deployed, whether this is with internal or external experts.
• In situations where many companies are operating in a similar area (for example, sourcing from an ASM area), considering establishing a joint assessment team with other companies or through an industry or multi-stakeholder mechanism or initiative.

If the group/entity/facility is a Tier 2 midstream or downstream company:

• Further evaluating the due diligence and risk mitigation practices of rough exporters (first export from country of mining origin) or Tier 1 midstream companies if possible, and if not, then the due diligence and risk mitigation practices of suppliers furthest upstream in the known supply chain.
• Considering any information that is available from upstream companies in the red-flag supply chain.
• If the due diligence practices of any upstream companies in that supply chain have been independently audited against a relevant standard, trying to get the results and reviewing them.
• Alternatively, Tier 2 midstream or downstream companies may identify through industry cooperation and schemes the rough exporters or Tier 1 midstream companies that meet the requirements of this guidance in order to source from them.

In instances where risks or presence of adverse impacts have been identified, a risk management strategy needs to be designed and implemented, appropriate to the nature and scale of your organisation and realistic ability to implement mitigating measures.

The group/entity/facility shall consider factors such as severity and probability in its assessment and mitigation plans.

For upstream and Tier 1 companies the mitigation management plan for red flags should:

• Establish a traceability system that collects and maintains information that is specific to red-flag supply. This means that parcels can be tracked from extraction through to export and each actor involved in the trade and transport can be identified.
• Enhance physical security practices over the supply chain.
• Monitoring and tracking performance of risk mitigation may be done in co-operation or consultation with local and central authorities and other relevant stakeholders. Consider establishing or supporting worker or community-based networks to monitor risk mitigation.

In some cases, material may have been purchased with adequate due diligence and in good faith before becoming aware of a reasonable risk of serious abuses or support to non-state armed groups (and therefore before suspending or disengaging trade). In these cases, the group/entity/facility should temporarily physically segregate supplies that have already been purchased until the risk is resolved. If the risk is not resolved, the group/entity/facility should seek legal advice on selling the material and be transparent with potential clients about its good faith due diligence efforts and mitigation actions.

Traceability is only required when red flags are identified and only for upstream and Tier 1 midstream companies. Traceability can be per mixed parcel or batches.

If the group/entity/facility is a Tier 2 midstream or downstream company, the risk management plan should be based on enhanced engagement with suppliers and strengthening systems of information collection. This includes ensuring that the information received from suppliers on the source with the identified risk is regularly updated.

The group/entity/facility must define a timeframe for achieving significant measurable improvement (maximum six months) and continue monitoring the supply chain to assess its plan’s effectiveness. If, after reasonable efforts at mitigation, the group/entity/facility still fails to achieve its desired outcomes, it should disengage from the supplier. If circumstances with the supplier change, such as their supply processes or sources, additional fact and risk assessment should be undertaken due to these changes in circumstance.

Findings of supply chains risk assessment shall be reported to the designated senior management and risk mitigations shall be monitored appropriately.

STEP 4: THIRD-PARTY ASSESSMENT OF COMPANY DUE DILIGENCE PRACTICES

The group/entity/facility shall undertake a third-party audit of its full due diligence practices by an independent verifier.

STEP 5: ANNUAL REPORTING

The group/entity/facility shall publicly report on its due diligence systems, practices and approaches at least annually either through company websites, company reports, and other publications and/or human rights due diligence reports can be used for these purposes. Small businesses are not required to prepare a print publication but can establish a short memorandum which can be made available upon request. The level of detail in the report should reflect the level of risk in the group’s/entity’s/facility’s supply chain, the scale and impact of the business.

Entities will establish and implement product security policies and procedures within the premises and during shipment to protect against product theft, damage or substitution.

Entities will prioritise the security and well-being of employees, visitors and other relevant business partners when establishing product security measures to prevent product theft, damage or substitution.

All businesses should ensure that diamond or gold jewellery products sold by members to end consumers will be compliant with the applicable regulations for product health and safety.

FULL DISCLOSURE:

Full disclosure is the complete and total release of material information about gold, a diamond or other stone and the material steps it has undergone prior to sale to the purchaser. The vendor must make all reasonable efforts to ensure this information is disclosed at all times during the selling process. Full disclosure of all material facts must take place whether or not the information is specifically requested and regardless of the effect on the value of the item being sold.

Full disclosure, by the vendor to the purchaser, must take place when offered for sale, such that:

• Full verbal disclosure must clearly take place prior to the completion of sale;
• Full written disclosure must be conspicuously included on each bill of sale or receipt in plain language and readily understandable to the purchaser. Written disclosure should normally be in English and any relevant local language;
• Disclosure must be immediately preceding or succeeding the description of the diamond and/or gold and must be equally conspicuous to that description.

It is recommended that the nomenclature standards defined in the International Standard on ‘Jewellery – Consumer confidence in the diamond industry’, ISO 18323:2015 (E) are adhered to ensure clear and accurate labelling on how to describe diamonds, treated diamonds, synthetic diamonds, composite diamonds and imitations of diamonds. Entities can elect to certify against the ISO 18323 standard.

See also the guidance provided in the Diamond Terminology Guideline below.

MISUSES OF TERMINOLOGY:

It is contrary to the purposes of these Requirements:

• To make any representation that does not conform in all respects to these Requirements in the selling, advertising or distribution of any gold, diamond, treated diamond, synthetic diamond or diamond simulant defined in these Requirements;
• To make any misleading or deceptive statement, representation or illustration relating to origin, formation, production, condition, quality or fineness of any gold, diamond, treated diamond, synthetic diamond or diamond simulant defined in these Requirements.

Representation includes illustrations, descriptions, expressions, words, figures, depictions or symbols shown in a manner that may reasonably be regarded as relating to the substance.

Selling includes offering for sale, exposing for sale, displaying in such a manner as to lead to a reasonable belief that the product so displayed is intended for sale. For avoidance of doubt this includes the accepted industry practice of ‘memo’, the practice of consigning goods, normally polished, to clients for pre-arranged periods for potential sale.

Advertising includes directly or indirectly promoting the sale or use of a product.

DIAMOND

The unqualified word ‘diamond’ must not be used to describe or identify any object or product not meeting the definition. in the Definitions section above.

SYNTHETIC DIAMOND

The fact that a stone is wholly or partially synthetic diamond must be disclosed at all times.

A synthetic diamond must only and always be disclosed as ‘synthetic diamond’, ‘man-made’, ‘laboratory created’, ‘laboratory-grown’ or ‘artificial’ and the description must be equally as conspicuous and immediately preceding the word ‘diamond’.

Any terms that are designed to disguise the fact that a stone is synthetic diamond or that mislead the consumer in any way must not be used. For example the terms ‘natural, ‘real’, ‘genuine’, ‘precious’, ‘cultured’, ‘cultivated’ and ‘gem’ must not be used to describe a synthetic diamond.

Names of firms, manufacturers or trademarks are not to be used as descriptors for synthetic diamonds, unless such names are clearly succeeded by the terms ‘synthetic diamond’, ‘man-made’ or ‘artificial’, as above. For example, a business trading as Acme may describe its synthetic diamonds as ‘Acme synthetic diamonds’ but not as ‘Acme diamonds’.

In accordance with the ISO 18323 standard it is recommended that any abbreviations such as ‘lab- grown’ must not be used to describe a synthetic diamond.

TREATED DIAMOND

Treatment means any process, treatment or enhancement changing, interfering with and/or contaminating the natural appearance or composition of a diamond other than the historically accepted practices of cutting and polishing. It includes colour (and decolourisation) treatment, high pressure high temperature (HPHT) treatment, fracture filling, laser drilling and irradiation treatment and coating.

The fact that a diamond has been treated must be disclosed at all times.

A treated diamond must be disclosed as either ‘treated’ or with specific reference to the particular treatment and the description must be equally conspicuous and immediately preceding the word(s) ‘diamond’ or ‘synthetic diamond’, as the case may be.

A description of the type of treatment and the methods used to achieve the treatment must always accompany the diamond.

Any term that is designed to disguise that treatment has occurred, or to imply that a treatment is part of the normal polishing process or that misleads the consumer in any way should not be used. For example the term ‘improved’ must not be used to describe a treated diamond.

Any significant effect on the diamond’s value caused by the treatment must be disclosed.

Any special care requirements that the treatment creates must be disclosed.

Names of firms, manufacturers or trademarks are not to be used in connection with treated diamonds, unless such names are clearly succeeded by the word ‘treated’ as defined in this section or are otherwise equally conspicuously and prominently disclosed as treated. For example, a diamond business trading as Acme may describe its treated diamonds as ‘Acme treated diamonds’ or ‘Acme diamonds, treated by HPHT’ but not as ‘Acme diamonds’.

DIAMOND SIMULANT

Diamond simulants must always be disclosed either as the mineral or compound that it is or as a ‘diamond simulant’, ‘imitation diamond’ or ‘fake diamond’. The unqualified word ‘diamond’ must never be used with diamond simulants.

Names of firms, manufacturers or trademarks are not to be used in connection with diamond simulants, unless such names are clearly succeeded by the terms as defined in this section. For example, a business trading as Acme may describe its diamond simulants as ‘Acme cubic zirconia’ or ‘Acme diamond simulants’ but not as ‘Acme diamonds’.

As defined in the ISO 18323 standard: Gemstones other than diamond whose colour, cut and appearance might be misrepresented as a diamond shall always be referred to by its mineral name, and not described as ‘imitation of diamond’. This could include gemstones such as quartz, sapphire, topaz, zircon and beryl.

COMPOSITE STONE

As defined in the ISO 18323 standard: Composite stones where all parts are composed of diamonds must be called ‘composite diamond’ or ‘diamond doublet’.

A composite stone where some, but not all, parts are diamonds shall be described as ‘doublet’ (two parts) or ‘triplet’ (three parts) or ‘composite’ (two or more parts). These words be immediately combined with the correct names of the components that form the final assembled product, the names of which must be mentioned from the upper part downwards, and be separated by a slash (/). For example, a doublet whose upper portion is diamond, and whose lower portion is synthetic diamonds is called a ‘diamond/synthetic diamond doublet’ or ‘doublet diamond/synthetic diamond’.

REAL, GENUINE AND NATURAL

The words ‘real’, ‘genuine’ and ‘natural’ must not be used to describe:

• Any synthetic diamond (see Definitions);
• A treated diamond (see Definitions);

The words ‘real’ and ‘genuine’ must not be used to describe:

• Any treated diamond (see Definitions);
• Any diamond simulant (see Definitions);

The word ‘natural’ must not be used to describe any diamond simulant if the diamond simulant is not a naturally occurring mineral or compound.

BRILLIANT, BRILLIANT CUT AND FULL CUT

The words ‘Brilliant’, ‘Brilliant Cut’ and ‘Full Cut’ must only be used to describe a round diamond that has at least 32 facets plus the table above the girdle and at least 24 facets below it.

GOLD

All gold jewellery products must comply with relevant local, national and global trading standards and applicable legislation.

All gold used in products must be accurately described in terms of fineness.

Where any gold quality marks are applied to items, this must be in conformance with relevant legislation both in terms of the information provided and the manner of its application. For example, the mark must be authorized to be applied and accurately indicate the quality of the gold.

SUPPLY CHAIN SYSTEMS

Factory controls must be implemented. These should contain effective and detailed policies, procedures, security, monitoring and training to avoid “switching” on the factory floor. For more information, please refer to the Product Security section.

A pipeline risk assessment must be created. The longer the pipeline the greater the risk, creating increased opportunity for undisclosed synthetic diamonds to be exchanged for natural diamonds or added into parcels intended for clients. It is a requirement that all entities map out their diamond pipeline and identify the areas that are at risk of contamination.

Once identified, all contamination points must be assessed and labelled low, medium or high risk.

Policies, procedures and training programmes should be established to address each identified contamination points, procedures should include testing for high risk areas.

In accordance with the guidance of the World Federation of Diamond Bourses (WFDB) and the WFDB Charter, the following assurances should be given on all invoices and memos:

• “The diamonds herein invoiced are exclusively of natural origin and untreated based on personal knowledge and/or written guarantees provided by the supplier of these diamonds.”
• The diamonds herein on memo are exclusively of natural origin and untreated based on personal knowledge and/or written, guarantees provided by the supplier of these diamonds.”

Stronger assurances should be given on invoices where all goods are either still in their natural rough form or are able to be fully tested prior to sale; the following text is proposed for these cases:

• “On behalf of [company name], and with its full authority, I declare by way of this written assurance that the diamonds [invoiced/sent by memo] and contained herein are exclusively natural diamonds meaning that the referenced [parcel/box] contains no synthetic diamonds or diamonds that have been treated.”

Established policies, procedures and training programmes must be reviewed from time to time to address evolving disclosure risks.

Programmes and/or procedures, including risk assessments, should be established to address compliance with the BPPs by business partners such as contractors, sub-contractors, suppliers, clients, agents and security providers that are directly involved in the mining, handling, manufacture and sale (or purchase as applicable) of gold, diamonds and/or diamond or gold jewellery. Due diligence that may have been undertaken on areas such as human rights and forced labour can be incorporated into the risk assessment. Evidence of commitment to responsible business practices through certification such as SA8000, ISO14001 and RJC certification could be taken in to consideration when addressing the reputational risk posed by a relationship with a business partner.

Companies/Entities/Facilities will need to demonstrate that they have taken appropriate action to satisfy the requirement to use Best Endeavours to ensure the commitment of non-Substantial contactors to comply with the BPPs (the Best Endeavours Requirement).

Such actions must include providing relevant Contractor entities with a copy of the BPPs as well as information on the practical implementation of the BPPs (for example, copies of the BPP Requirements and the BPP Workbook). Other appropriate actions could include, but are not limited to:

• Offering Contractor entities assistance on the implementation of the BPPs;
• Obtaining a contractual undertaking from the relevant Contractor entity that it will comply with and implement the BPPs, including an undertaking by the entity to carry out Assessments and report the results of such Assessments to the relevant company;
• If appropriate, and with the consent of the Contractor entity, carrying out Third Party Assessments of the Contractor entity at intervals and a basis to be agreed between the parties.

Each relevant Company/Entity/Facility will need to provide written evidence of the actions it has taken to satisfy the Best Endeavours Requirement.

Each relevant Company/Entity/Facility will have access to the results of their Substantial Contractors’ verification visits and if required, must be able to demonstrate working actively to assist in implementing any required corrective action.

Companies/Entities/Facilities will need to confirm if they make claims or statements to consumers or other businesses on practices in their supply chain and the origin or source of diamonds, synthetic diamonds, gold and/or platinum through the use of descriptions or symbols. Advertising, marketing and other sales-related documentation should be used to establish if this section is relevant.

Companies/Entities/Facilities shall refer and comply to the RJC Code of Practices and Standards Guidance for information on what type of statement meets the definition of a provenance claim. As aligned to the RJC, provenance claims can include (but are not limited to) claims which:

• Trace materials back through the supply chain to its origin (for example through invoices from the mine or producer of origin)
• Verify the sources or practices related to the material
• Relate to the materials, sourcing or practices that go beyond existing BPP and/or RJC requirements.

Each relevant Company/Entity/Facility will need to provide documented policies/procedures or requirements to validate the Provenance Claim(s).

Any and all provenance claims made by the Company/Entity/Facility must be disclosed on the BPP SMART System Group Profile Page.

Guidance for the Diamonds from DTC provenance claim are issued separately and available on the BPP SMART System and www.dtc.com

Each relevant Company/Entity/Facility shall maintain appropriate record keeping procedures, and verify that the criteria or requirements are met.

A manager should be responsible for ascertaining which employees require training on the Provenance Claim(s), these employees respond to product enquiries and should be aware of their accountabilities demonstrating a full understanding of the Provenance Claim(s) made. All documentation related to training shall be maintained, including but not limited to: written procedure, training materials and training register.

Interested parties should have access to a complaints or grievance mechanism.

For sales directly to consumers, details about provenance claims and systems to achieve them must be made available at point of sale and on the Company/Entity/Facility website.