The president of the World Diamond Council takes time out of her busy schedule to tell Rough&Polished readers about the critical work of the WDC.
Zerouki, the first female present of the body, which includes all the important industry organizations among its membership, explains how and why the WDC was established.
She also gives her views on the challenges facing the WDC and the diamond industry at large.
Can you explain the role of the World Diamond Council (WDC)?
The World Diamond Council (WDC) is an industry association dedicated to safeguarding the integrity of the natural diamond supply chain. Our mission is to promote responsible sourcing, enhance consumer confidence, and drive socioeconomic development within the diamond industry. Historically, we’ve been closely associated with the Kimberley Process (KP), where we represent the industry in a tripartite partnership alongside governments and civil society, and have played a pivotal role in establishing the Kimberley Process Certification Scheme (KPCS). Our ongoing work includes supporting KP reforms and actively participating in various KP working groups, such as leading the Working Group of Diamond Experts.
Beyond the KP, we’ve developed self-regulation mechanisms like the System of Warranties (SoW), which complements the KPCS by promoting ethical sourcing across the entire diamond value chain. Although WDC is an apolitical body, our members span all sectors of the global diamond industry—ranging from mining and cutting to polishing, trading, and retail. Because we represent every stage of the diamond supply chain, we often take a leadership role in coordinating industry-wide responses, such as during discussions on G7 sanctions, where we united industry voices to engage with policymakers on a global scale.
How does WDC's role differ from other international bodies like WFDB, IDMA, and CIBJO?
It’s important to highlight that the WFDB, IDMA, and CIBJO are all members of WDC. In fact, the WFDB and IDMA were instrumental in founding the WDC, and CIBJO was one of our original members. Their involvement is crucial, as they bring the grassroots perspective of the diamond industry to our work through their extensive memberships. Additionally, WDC counts many other major industry associations as members, collectively representing hundreds of thousands of companies and individuals worldwide.
What sets WDC apart is our unique role in representing the diamond industry within the Kimberley Process. Over nearly 25 years, we’ve built unparalleled expertise in negotiating and collaborating with governments and civil society. This depth of experience gives us a distinct position within the global trade, particularly when it comes to regulatory matters and policy discussions that impact the entire industry.
What are the main issues facing the WDC and its members? What are the key concerns being raised by the membership?
One of the most pressing challenges is the increasing recognition that responsible business practices are no longer optional; they are essential to the value proposition of our products. Today’s consumers are socially conscious, and we must meet their expectations to maintain their trust. Our members are increasingly embracing recognized ethical standards, but there are concerns about the balance between compliance and practicality, especially for small and medium-sized enterprises (SMEs). While some regulatory bodies, like the KP, are not always attuned to what market currently requires, others impose stringent requirements that can be economically challenging, particularly for smaller players.
Another critical issue is the perception of lab-grown diamonds (LGD) as a "greener" alternative to natural diamonds. We see this as a myth that needs to be addressed, particularly because responsibly sourced natural diamonds offer significant benefits to producing countries, in terms of sustainable development—benefits that LGDs simply cannot provide.
At WDC, we are navigating these complexities on behalf of the industry. We are actively advocating for an expanded conflict diamond definition within the KP, aligning it with today’s realities, but also seeking practical means confirming a diamond’s origin to enable all members of the industry to meet legal requirement in the G7 countries in a fair and equitable way.
How has WDC evolved in recent years, and how is it addressing the challenges in the global trade?
WDC has undergone a significant evolution since its founding in 2000. Originally a coalition of industry associations and companies united by the conflict diamond crisis, we’ve since restructured to ensure long-term viability from governance, financial, and functional perspectives. In 2014, we shifted to a membership-based funding model, designed to encourage participation from both large and small companies throughout the value chain. Our governance now rests with a diverse 20-member Board of Directors, representing all segments of the diamond industry, from mining to retail.
This restructuring initially led to a reduction in membership, but as we strengthened our leadership role and demonstrated concrete results, members of the industry realized that not only are we showing results, but we also are a vehicle for them to have their voice heard, and a body that provides them agency over their own futures.
I’m proud to say that since January 2023, our membership has grown by 86%, encompassing major players as well as SMEs, gemmological labs, carriers, banks. Many of our members are also national or international associations, representing multiple industry stakeholders.
And, as I mentioned earlier, as WDC continues to represent the entire natural diamond industry, we provide a platform for coordinated action on key issues affecting our supply chain’s integrity. While we don’t supersede the authority of other bodies, we ensure that all industry voices are heard, and we enable the industry to present a united front on global matters.
How would you describe your experience as the head of WDC?
It’s certainly been a highlight of my career, in no small part because I firmly believe that we’re on the right side of history – not only cementing the future of a product and an industry but doing so by empowering and improving the lives of people in producer countries.
But what’s particularly gratifying is the teamwork. Not many people realize how much time, thought, study and effort go into what WDC does, and how reliant we all are upon each other. I am constantly impressed and inspired by my colleagues, who give of themselves selflessly.
During the year and half, I have been president, I have seen an increasing readiness among our membership, and particularly from younger representatives, to take on active policy-making roles. Our Kimberley Process Task Force, which is the WDC committee that plans strategy and then participates in KP meetings and working groups, has grown and become considerably diverse and younger on average. These are people who prepared to invest considerable time and personal resources on behalf of the entire industry.
It gives me tremendous hope about where we collectively are going.
I would also be remiss if I did not mention my own pride at being the first women ever to head an international diamond association. Indeed, I believe WDC is the only such body to have two women at the helm – myself as President, and Elodie Daguzan as Executive Director. Together, we are proud to be promoting gender equality—not just in principle, but in practice. We’re proving that leadership in the diamond industry can and should reflect the diversity of its workforce.
Can you explain the WDC’s System of Warranties (SoW) and its significance for the global trade?
In essence, the WDC System of Warranties (SoW) ensures that diamonds traded along the supply chain—from mine to retail—are compliant with the Kimberley Process. While the KPCS focuses solely on rough diamond exports, the SoW extends those assurances through the entire supply chain, requiring every transaction of rough or polished diamonds, and diamond-set jewelry, to include a warranty statement. This statement guarantees that the diamonds originate from legitimate sources in compliance with the KPCS.
Since 2021, the scope of the SoW has been expanded to include responsible business practices such as human rights protections, anti-corruption measures, and anti-money laundering compliance. Importantly, to issue the SoW, companies must register on our dedicated website and complete a self-assessment process, using our comprehensive toolkit. Upon completion, companies receive a unique ID number for inclusion on invoices and memos, providing transparency and assurance to their clients. Implementation of the revised SoW requires more from you than simply making a declarative statement.
The grace period for rough diamond sales just ended on September 21, 2024.
Can you provide an update on the current state of conflict diamonds in the global trade?
Technically, the only country currently being monitored as a potential source of conflict diamond is the Central African Republic (CAR). However, there is a system in place that allows for KP-compliant exports from eight approved "green zones," which are monitored by the CAR Monitoring Team, of which WDC is a part.
The KP sent an international review mission in September to CAR, which we took part in, to assess and understand the situation on the ground. We are grateful to the CAR government for their warm welcome and continued readiness to work with the KP. A report is currently being written to be presented to the KP in the near future.
A large measure of our attention, however, is also being invested in what hopefully will ultimately become an expansion of the conflict diamond definition. For many years, WDC has openly advocated for this, arguing that the original definition, which limits conflict diamond to rough goods being used finance civil war against legitimate governments, does not properly address the threats and challenges that exists today.
This is a not a new issue, but it is one that has proven frustratingly difficult to resolves given the KP’s decision-making process, which requires absolute consensus among all Participant countries.
WDC is heading the Sub-team in the Ad Hoc Review Committee that is examining the definition. The subject matter is very delicate, and participants have strongly held opinions. Kele Mafole, who has been skillfully chairing the sub-team on WDC’s behalf, has been moving ahead very deliberately and transparently, making certain that all participants feel that their concerns are being heard, and mutually respected. Outside opinion has been sought, with representatives of communities in the producing areas speaking before the sub-team, expressing their opinion and concerns. It's still early to gauge whether we’ll ultimately be successful, but I do feel that progress is being made, and there is a genuine readiness to achieve results.
What is likely to come about regarding the G7 sanctions in your opinion?
WDC’s firmly held opinion is that all members of the industry must follow the letter of the law in whatever country they are operating, and in the G7 countries, the European Union and other nations where sanctions are being applied. This means properly complying with all sanctions and trade restrictions where they are in force.
Our position from the very beginning is that we support the introduction of an effective mechanism, which can be equitably applied by all law-abiding diamond traders. For this reason, we were very uncomfortable with the proposal to channel all diamonds destined to the G7 markets through a single node in Belgium, because we felt this would not be effective and would disadvantage African producing countries and particularly artisanal and small-scale miners, as well as jewelry consumers onto whom the additional costs ultimately will be rolled.
The import restriction system needs to be fair and reflective of reality on the ground. In principle, we have no issue with the introduction of technologies that enhance traceability, to confirm the origin and provenance of diamonds. Indeed, the industry has been working on digital systems that enable traceability, such as the Tracr platform at De Beers, which is being made available for use across the industry. But at the WDC, we are skeptical about the a priori promotion of systems whose effectiveness has not yet been confirmed or whose applicability is limited.
As time progresses, and it becomes apparent that many of the concerns that we voiced were valid, a new approach seems be taking hold. The pushing back of the deadline to introduce a traceability program for imports of rough and polished natural diamonds in the EU is indicative of this, as was the recognition of the G7 to engage with African Producers to minimize unintended consequences to the livelihoods of their people.
Another step would be the various G7 participants recognizing that grandfathered diamonds, meaning old stock would not be generating any revenues for Russia and hence fell out of scope. We continue to call for cross recognition meaning diamonds that are compliant in one G7 market, automatically achieve compliance in the others.
Finally, we are calling on the G7 to support the successful progress achieved at the Kimberley Process this past May, that enables countries to use their sovereign right to independently certify the origin of diamonds for mixed origin parcels. This a direct result of a proposal by the WDC that supports our view that the origin of diamonds should be certified at source to minimize the risk of contamination and create an equitable mechanism inclusive of African producers to support effective independent certification.
Abraham Dayan for Rough&Polished from Tel Aviv
