The World Diamond Council (WDC) has announced that the deadline for transitioning to its revised System of Warranties (SoW) is rapidly approaching.
On September 21, 2024, the three-year grace period for converting to the new system for rough diamond sales will conclude.
Understanding the System of Warranties
The System of Warranties is a global mechanism designed by the WDC to ensure that companies relay compliance with the Kimberley Process Certification Scheme (KPCS) and SoW Guidelines to the next buyer in the supply chain. This system guarantees the conflict-free origin of traded goods and adherence to responsible business practices, including human rights, labor rights, anti-money laundering (AML), and counter-terrorism financing (CTF).
Transition Process
To transition to the revised SoW Warranty Statement, companies must:
- Register on the dedicated WDC System of Warranties website.
- Complete an online self-assessment questionnaire.
- Add the new warranty statement to invoices and memo templates, displaying the unique identification number received upon successful submission of the self-assessment.
Benefits of the Revised SoW
The revised SoW helps businesses review and enhance their responsible practices. Displaying a unique SoW ID number on invoices and memos signals compliance to counterparts and promotes industry-wide adherence to responsible practices.
The self-assessment for the SoW is tailored to fit any company, regardless of its segment in the diamond and jewelry value chain, size, or existing compliance with other industry standards such as the Responsible Jewelry Council (RJC) or De Beers Group Best Practice Principles (BBPs).
Call to Action
“We strongly urge all companies, but especially at this very moment rough diamond traders, to transition to the revised SoW, if they have not done so yet, to be ready for the September 21 deadline,” said Elodie Daguzan, WDC Executive Director. “Registration is remarkably easy. There is a full toolkit available as well as a SoW Coordinator who operates a hotline for anyone requiring support. By abiding by the SoW, diamond companies demonstrate leadership, upholding the baseline of industry self-regulation at a time where due diligence practices have never been so important.”
