Diamond Miners Push Back on Ethics Claims

RAPAPORT... The major diamond miners have weighed in on the debateover which diamonds are more ethical, claiming their production uses less than one-thirdof the energy it takes to create a diamond in a lab. The operations of companies that make up theDiamond Producers Association (DPA) emitted an average of 160 kilograms ofcarbon dioxide (CO2) per 1-carat of polished diamonds produced in 2016, accordingto a study commissioned by the DPA and carried out by Trucost ESG Analysis,which is part of S&P Global. That compared to the estimated greenhouse gasemissions of 511 kilograms of CO2 for the average 1-carat lab-grown polished stone. A debate has ensued in recent years over which diamond ismore environmentally friendly (or harmful), with many lab-grown-diamondcompanies claiming to have the greener product in their advertising. In April,the Federal Trade Commission (FTC) warned several synthetics producers againstusing claims such as "eco-friendly," "eco-conscious" or "sustainable" withoutqualification. "This independentresearch report breaks outdated stereotypes and misconceptions and identifiesthe next set of challenges that must be met to continueto evolve and improve as an industry," said DPA CEO Jean-Marc Lieberherr in astatement on Thursday. The DPA members have set goals to reduce their carbonfootprint, while the DPA will monitor their progress in achieving the UnitedNations Sustainable Development Goals.  The report, titled "The Socioeconomic and EnvironmentalImpact of Large-Scale Diamond Mining," highlights the benefits to employees ofDPA members, the impact those companies collectively have on the communities inwhich they operate and their environmental stewardship. Together, the miners generate more than $16 billion innet socioeconomic and environmental benefits through their operations, Trucostreported. Despite significant progress toward responsible andtransparent practices over the past 15 years, the current reality of thediamond-mining sector remains largely unknown, the authors noted. "This reportprovides access into a highly scrutinized, yet largely misunderstood sector,"the report added. The DPA consists of seven companies, with Alrosa, De Beers, Rio Tinto and Petra Diamonds participating in the study. Dominion Diamond Mines, Lucara Diamonds and Murowa Diamonds are the other members.   The Lab Grown Diamond Association did not reply to arequest for comment from Rapaport News by press time. Image: Rough and polished diamonds. (Diamond Producers Association)