The 2024 CIBJO Congress gathered global jewelry industry leaders to address key issues around consumer confidence, sustainable practices, and standardised terminology.
Hosted by the China Gem and Jade Exchange, Diamond and Gems Administration of China and the Donghao Lansheng Group, the congress explored the challenges facing the industry and the shared responsibility of jewellers worldwide.
Protecting Consumer Confidence Amid Uncertainty
The opening addresses emphasised the industry’s collective duty to uphold consumer trust. CIBJO President Gaetano Cavalieri underscored that consumer confidence is central to the value of jewelry, built upon an “unwritten contract” with consumers that must be honoured through responsible business practices. As the global market navigates economic uncertainties, such as geopolitical tensions and fluctuating consumer demand, Cavalieri noted the critical importance of fostering transparency and adherence to ethical standards.
Ms. Feriel Zerouki, President of the World Diamond Council, highlighted the role of leadership during times of industry disruption. She urged leaders to remain committed to ethical principles and responsible decision-making that benefits both current and future stakeholders. “Leadership shows its true colours in times of resistance and uncertainty,” she said, underscoring the importance of guiding the industry through complex times.
Ethical Sourcing and Greenwashing Concerns
The Ethics Commission, led by Sara Yood, CEO of the Jewelers Vigilance Committee, discussed greenwashing risks, cautioning companies against making unsubstantiated claims about environmental responsibility. As consumers become increasingly aware of environmental issues, panellists emphasised the need for brands to back their sustainability claims with concrete actions. “Don’t make claims unless you can back them up,” stated Raluca Anghel of the Natural Diamond Council, adding that accurate and verifiable claims are essential to maintaining consumer loyalty.
John Mulligan from the World Gold Council noted the risks of weaponising the term “greenwashing,” which can discourage companies from adopting sustainability initiatives due to fear of backlash. The panellists stressed that environmental claims should be credible and supported by evidence to avoid consumer scepticism.
Standardisation in Laboratory-Grown Diamond Terminology
At this year’s congress, the CIBJO Laboratory-Grown Diamond Committee reiterated the need for clarity in differentiating between laboratory-grown and natural diamonds. With demand for laboratory-grown diamonds (LGDs) increasing, especially in the U.S. where it accounts for 75% of the market, jewellers were reminded of the importance of using precise terminology. Wesley Hunt, Chair of the committee, cautioned against using terms such as “eco-friendly” without clear justification, as these can mislead consumers about the environmental impact of laboratory-grown diamonds.
To assist LGD companies in adopting responsible practices, John Key of Key & Co. introduced a toolkit with guidelines on Environmental, Social, and Governance (ESG) practices. This “living document” aims to support companies in measuring and minimising their environmental footprint, with plans to evolve the toolkit into a CIBJO Blue Book for formal guidance.
Supply Chain Nomenclature Standardisation
The CIBJO Supply Chain Nomenclature Committee, chaired by Feriel Zerouki and coordinated by Purvi Shah, presented progress on standardising supply chain terminology across the industry. This effort is part of a broader movement to align terms describing origin, source, and ethical practices, particularly as the EU and other regions advance consumer protection legislation that mandates accurate reporting of environmental claims.
Ms. Anghel emphasised that the standardisation project is crucial for ensuring that ethical claims made along the supply chain are transparent and understandable. “Once adopted, let’s all unite behind these terms,” she said, signalling that standardised terminology will help consumers make informed choices.
Addressing Disclosure in Diamond Terminology
Accurate terminology remains a priority for the Diamond Commission, led by Udi Sheintal. With the rise of laboratory-grown diamonds, consumer understanding of the distinctions between natural and synthetic diamonds is critical. The commission presented its ongoing work on refining the Diamond Blue Book, which provides guidelines on the correct usage of terms like “laboratory-grown” and “synthetic” to protect consumers and avoid misleading representations.
The Natural Diamond Council (NDC) shared examples of recent enforcement actions against misleading advertising, including the UK’s ban on Skydiamond advertisements for incorrectly labelling synthetic diamonds as “real.” Raluca Anghel also highlighted issues with terms such as “green diamonds” used in Indian marketing, reinforcing the importance of adhering to agreed-upon language.
Future Directions for the Jewelry Industry
The congress underlined a collaborative approach to strengthening industry standards and transparency in a rapidly evolving market. By adopting unified terminology and responsible sourcing practices, jewellers can enhance consumer trust and better align with global sustainability goals. This shift towards clearer disclosures, ethical marketing, and responsible supply chains reflects a broader commitment by industry leaders to uphold the credibility of the jewelry sector in the face of increasing consumer scrutiny.
As the industry embraces these measures, jewellers worldwide will have to navigate and implement these standards across their operations, adapting to an era of heightened transparency and accountability.
