Diamond Traceability Solutions
The diamond industry has been scrutinised for ethical sourcing and environmental impact for decades. In 2005 the Responsible Jewellery Council (RJC) was founded to set standards for the jewellery and watch industry, united by a shared belief that responsible business practice should not cause harm to communities or the planet.
Pala Diamonds is the 1st UK-based diamond trading company certified by the RJC.
Consumers are increasingly concerned about the origins of the diamonds they purchase. They need confidence that the jewellery they wear is ethical. Historically this has been difficult in an industry shrouded in mystery, but we believe that it is possible to provide full traceability and provenance for every diamond on its journey from mine to market.
In 2024, is the System of Warranties enough?
The intention to provide traceability on purchased diamonds is not new. In 2002 the World Diamond Council devised the System of Warranties, incorporating a declaration that should be found on every sale of polished/cut diamond purchases as they journey from county of origin to jeweller.
“The diamonds herein invoiced have been purchased from legitimate sources not involved in funding conflict and in compliance with United Nations resolutions. The seller hereby guarantees that these diamonds are conflict free, based on personal knowledge and/or written guarantees provided by the supplier of these diamonds.”
The intention was to show that the diamonds met the requirements of the Kimberley Process, specifically applied to polished diamonds rather than rough, uncut diamonds. An updated version was launched in 2021, and will be a requirement by September 2024, offering more guarantees that the diamonds sold are compliant and conflict-free. If the paperwork accompanying your diamond purchase does not contain this statement, it is a red flag.
However, for all its good intentions, the System of Warranties is not tamperproof. It depends on the personal knowledge and written guarantee of the supplier – based on trust, effectively. We trust that the largest diamond trading companies, especially clients of mining groups such as De Beers or Rio Tinto, are regularly audited for Best Practice and take steps to protect their reputation.
However, when the diamond supply chain stretches across multiple sources and suppliers, countries and continents, all with their own attitude to responsibility, can we really guarantee a perfect line and disclosure of origin? Multiple sources create a difficult or near-impossible chain to track, particularly if you want to trace your diamonds back to a single source.
In light of this, and the recent UK restrictions on polished and rough diamonds of Russian origin, the Pala Diamond Company have made a conscious effort to launch traceability solutions for our customers, giving you enhanced transparency and guarantee of provenance.
The Pala Diamond Commitment to Transparent Sourcing.
We believe in providing traceability on all of our stones and take extensive measures to document each step of their journey from source to your hands. This includes:
1. Careful selection of our partners
We collaborate with mining companies and suppliers who also adhere to the highest ethical and environmental standards. We vet our partners to be sure they comply with our strict criteria for responsible sourcing. Each one is RJC certified and committed to fair labour practices, environmental sustainability, and community development. And, importantly, each partner adopts the same traceable technologies we have implemented to ensure a robust and transparent supply chain.
2. Advanced Tracking Technology
Utilising state-of-the-art tracking technology, we document every stage of the diamond’s journey. From the moment it is mined, through the cutting and polishing processes, to its final stage of sale from Pala, every step is recorded and verified on a ledger that cannot be manipulated. This technological integration allows us to maintain a seamless and transparent record of each diamond’s path.
3. Verifiable Data and Documentation
Each diamond parcel comes with a comprehensive report detailing its entire journey. This includes information about the mining location, the ethical practices followed, and the various stages of transformation the diamond undergoes. Our customers can review this data to make informed decisions. The reports are designed to be clear and accessible, providing all the necessary information at a glance.
4. Blockchain Integration
We integrate blockchain technology to create an immutable record of each diamond’s history. This ensures that every transaction and transformation is securely documented, providing unparalleled transparency and trustworthiness. Blockchain technology offers a decentralised and tamper-proof ledger that enhances the security and reliability of our traceability efforts.
Our Traceability Partners
Tracr™
Tracr ™ is the world’s leading digital platform for tracing natural diamonds from source at scale, giving the ability to explore provenance, authenticity and the unique journey of a diamond along the value chain. A technology company at heart, Tracr™ developed by De Beers Group of Companies, have partnered with their select DTC Sightholders to enhance traceability solutions for the industry worldwide.
Pala Diamond Company proudly implements Tracr™ into our diamond supply chain. Tracr™ utilises cutting-edge blockchain, AI, and IoT technologies to provide a secure and immutable record of each diamond’s journey from mine to market. For jewellers and jewellery manufacturers, sourcing diamonds from Pala Diamonds means accessing a transparent, verified and trustworthy supply chain. Tracr™’s rigorous data recording ensures compliance with industry regulations and builds consumer trust through verified ethical sourcing of natural polished diamonds. This platform not only automates data collection and management, reducing errors, but also provides real-time insights into the supply chain, enhancing accountability and transparency.
Partnering with Pala positions your business at the forefront of technological innovation and ethical practices, distinguishing you in a competitive market. Trust us and Tracr™ to deliver a reliable, transparent, and efficient diamond supply chain, enhancing your reputation, and fostering customer loyalty.
We are privileged to be partnered with Tracr™ and are working closely with their developers to create a tangible, mass industry solution for the traceability of star, melee and full cut diamonds in physical parcel format.
iTraceiT
iTraceiT is a Belgian company founded in 2021, specialising in traceability solutions for the diamond and jewellery industry. Leveraging blockchain and AI technologies, iTraceiT ensures transparency and security across the supply chain. For Pala Diamond Co, this technology offers several key advantages to our customers.
The use of blockchain guarantees the immutability of data, ensuring that all recorded information is secure and cannot be tampered with. This feature enhances the credibility of diamond sourcing and processing, helping us at Pala Diamond Co. meet your compliance requirements and address the growing consumer demand for ethically sourced diamonds. QR codes are utilised to capture detailed data at each stage, from mining to retail, making the entire supply chain transparent.
Integrating iTraceiT’s solution allows us to streamline operations through data collection and management. It offers the ability to track and verify the origin and journey of diamond parcels thus building consumer trust. Customers now can be assured of the ethical sourcing and authenticity of their purchases through the traceability report we can provide.
iTraceiT supports sustainable business practices, ensuring transparency and security throughout the diamond supply chain, improving the traceability of product whilst meeting your compliance goals.
We are proud to be an Official Partner of iTraceit – one of the leaders in this field of traceability, AI and blockchain solutions for the diamond industry.
Real-world impact of leveraging technology
In addition to blockchain technology, Pala Diamonds incorporates tracking systems to monitor the progress of the diamonds through various stages of production. These systems use RFID tags, QR codes, and GPS tracking to provide real-time updates and ensure that each diamond’s journey is accurately documented if requested. This multi-layered approach enhances the reliability and transparency of our efforts.
Using tracking technology doesn’t just reassure the consumer at the end of the journey. It has a real-world impact on the mining communities along the supply chain.
Tracking allows us to uphold the commitment to fair labour practices by selecting business partners who invest in community projects such as education, healthcare, and infrastructure, which have a lasting positive impact. We can ensure environmental standards by working with partners who conduct production responsibility, minimise harm to ecosystems and promote sustainable practice.
The Pala Diamond difference
We are proud of our commitment to improving traceability, and we recognise that it is an ongoing process. We regularly update our practices, collaborate with industry organisations to promote best practice and drive positive change, and participate in industry forums and working groups.
We believe educating our customers is crucial. We use our marketing and communication efforts to provide insight into the industry, the challenges of ethical sourcing and the technology we use. We aim to build a community of informed and responsible consumers.
Through our efforts to remain at the forefront of technology, Pala Diamonds stands out as a leader in traceability. Our goal is to set new standards for transparency and inspire other companies to follow suit.
We recognise that consumers in the luxury sector want products that are not only high quality and beautiful, but ethically, environmentally and socially responsible, as well. Consumers today are more informed and willing to pay a premium for products guaranteed to align with their values. Our efforts to fully embrace all advances in the industry means that we, and you, meet consumer demands head-on.
The Role of Technology in Traceability
Technology plays a pivotal role in our traceability efforts. Our integration of blockchain technology ensures that every step of the diamond’s journey is securely recorded and verifiable. This not only prevents fraud and counterfeiting but also provides an unbroken chain of custody for each diamond.
In addition to blockchain, we utilise advanced tracking systems that monitor the diamond’s progress through various stages of production. These systems use RFID tags, QR codes, and GPS tracking to provide real-time updates and ensure that each diamond’s journey is accurately documented if requested. This multi-layered approach to tracking enhances the reliability and transparency of our traceability efforts.
Commitment to Continuous Improvement
Our commitment to traceability is an ongoing process. We regularly review and update our practices to ensure that we remain at the forefront of the industry and stay ahead of the curve. This includes conducting audits, seeking feedback from customers and partners, and staying informed about the latest developments in technology and ethical sourcing.
We also collaborate with industry organisations and advocacy groups to promote best practices and drive positive change. By participating in industry forums, conferences, and working groups, we contribute to the broader movement towards transparency and sustainability in the diamond industry.
Accountability through Traceability – The New Standard of Luxury
For those seeking diamonds with a clear and documented journey, our business stands out as a leader in traceability. More than ever, the luxury sector has evolved from quality and precision product to now fully traceable, quality and precision product. Our meticulous approach to selecting partners, leveraging advanced technology, and providing verifiable data ensures that every diamond we sell is ethically sourced and transparently documented. We believe that traceability is not just a trend but a fundamental shift towards a more ethical and sustainable luxury diamond industry.
Join us in promoting transparency and ethical sourcing in the diamond industry. With our commitment to traceability, you can be confident that your diamond is not only a symbol of beauty but also a testament to responsible and ethical practices. As we continue to innovate and lead the way in
diamond traceability, we invite you to be part of this journey towards a more transparent and sustainable future.
