Gold and Diamonds: The Social and Environmental Impacts of Mining for the Diamond Ring

Sustainability Issues and Options

In the life cycle of a diamond ring, the exploration and manufacturing phases are the biggest concern for environmental impacts. The mining industry is under extreme pressure to develop and extract resources in a more sustainable manner, with limited deleterious effects on the natural environment. The mining industry has reacted to this pressure by instigating and signing onto a number of initiatives and policies aimed at reducing the overall environmental impacts of their operations. The initiatives are ambitious but the performance does not seem to be achieving the goals set out. Even those companies considered to be the leaders in sustainable development do not seem to be making significant progress in limiting their environmental impact.

The jewellery manufacturers and retailers are becoming increasingly affected by the growing emphasis on sustainability in the mining sector. The connection between jewellery and the environmental impacts of the mining industry is an important issue for the modern consumer. The jewellery manufacturers are not greatly affected by the pressures that are predominant in the mining sector. There is no connection in the mind of the consumer between the jewellery that they purchase and the environmental impacts of the mining industry. Publicity campaigns are limited but, when used, do seem effective in raising awareness of the environmental and social issues that are associated with the production of a diamond ring.

The purpose of this report is to investigate the environmental performance and responsibility of the jewellery sector and to make recommendations for improvement.

There are a number of initiatives that jewellers can pursue in order to improve their overall environmental responsibility. The most effective would be targeted at improving the mining industry’s performance.

Major Stakeholders

The Mining Sector

Environmental Issues

There are three main areas that raise environmental concerns for the mining sector: air emissions, land resource use and water contamination. 

The main problems associated with air emissions are the greenhouse gases produced in the mining process, which contribute to climate change, as well as local air quality degradation caused by gases and particulate matter expelled during extraction and processing.

In the course of mine development large-scale land disturbance can occur in sensitive environments and remote areas (e.g. tundra) resulting in decreased biodiversity, ecosystem degradation and soil erosion. Also, complete ecosystem destruction (lakes, forests, rivers) can result from failed mine reclamation efforts.

Toxins from contaminated waste water that are released into surface water can cause aquatic ecosystem degradation. Acid mine drainage and surface water contaminant seepage can also cause ground water contamination.

Mining Sustainability Initiatives

Several sustainability initiatives exist, both domestically and internationally. Often, international initiatives are designed to apply to all signatories in all countries. Such sustainability initiatives include, but are not limited to the following:

1. 
   The United Nations Global Compact
   
2. 
   The International Council on Mining and Minerals (ICMM)—Global Mining Initiative (GMI)
   
3. 
   The World Business Council for Sustainable Development (WBCSD)—Mining, Minerals and Sustainable Development Project (MMSD)
   
4. 
   World Wildlife Fund (WWF)—Mine Certification Evaluation Project (MCEP)
   

All of these initiatives share a common set of underlying values. Namely, they

emphasize increasing accountability, increasing transparency, decreasing environmental impact, minimizing social impacts, and cleaning up their practices to ensure that there are no negative health impacts on adjacent communities. Unfortunately, these initiatives are all voluntary, and non-regulatory. Since international initiatives are not being effectively enforced, and the industry has little incentive to abide by these initiatives, consumers and the retail end of the chain may then offer the solution by putting pressure on producers and miners by steering the market in the desirable direction.

The Jewellery Sector

Current Sustainability Initiatives

The key to a successful awareness campaign is the introduction of consumer choice. Responsible jewellers recognize the need for change in the mining and processing sector, and work together toward achieving a sustainable jewellery life cycle. One such jewellers’ council already exists: The Council for Responsible Jewellery Practices (CRJP). They are a non-profit organization that seeks to better the entire life cycle of gold and diamond jewellery. They aim to create a “Responsible Policies Framework” for their members; require the implementation of the framework that requires “self-assessment and is evidenced through a system of independent third party monitoring;” they advise and promote this framework; and they will promote the ethical, social, and environmental responsibility of the business community.⁷⁰ This initiative is in the early stages of development, but looks at the initiatives that affect the industry from the jewellers’ perspective. This is a key, retail driven, initiative to promoting sustainable mining practices, since the end of the jewellery supply chain—consumer opinion in general—is the determinant of the market. The Council’s idea is admirable; however there seems to be little power of enforcement.

No Dirty Gold Campaign

The No Dirty Gold Campaign follows the format of the Blood Diamonds campaign and is beginning to address the impacts of gold mining on societies and the environment. Initially targeted as a consumer education campaign, some of the bigger jewellery manufacturers have since signed onto the initiative. These signatories have committed to purchasing gold from mines that meet a minimum set of criteria. The criteria include stakeholder and community involvement and guaranteed funds for mine reclamation. If the No Dirty Gold campaign is as effective as the Blood Diamonds campaign, it could influence jewellers to pressure the gold mining companies to improve environmental performance.

Jewellery Organizations

There are a number of jewellery associations that have recently adopted environmental responsibility initiatives, two of which include CIBJO the World Jewellery Confederation and the Jewellers of America (JA).

CIBJO is an international confederation of national jewellery organizations. Its Corporate Responsibility Initiative is a very general document that focuses mainly on sales practices and conflict diamonds and relies completely on self-monitoring. The document’s only reference to the environment is the following: “…full compliance with international best practice and the related regulatory framework with respect to the environment.”⁷¹ There is a need to know what the effects of non-compliance with international initiatives are on the jewellery industry.

The Jewellers of America’s has a Supplier’s Code of Conduct which provides guidelines for assessing the suitability of metal and gemstone providers. It is a four page document dedicated predominantly to employee rights, child labour and ethics. There is one paragraph dedicated to the environment which states: “…it is therefore in the industries best interest to ensure that the minerals upon which it depends are obtained, produced and used in environmentally and socially responsible ways.”⁷² This statement does not address any specific issues and has no guidelines for assessment of suppliers and their practices.

The environmental responsibility initiatives of the jewellery organizations are weak documents that do not address the environmental issues associated with the mining industry. Both documents have a separate section dedicated to “conflict diamonds,” which is a result of the bad publicity created by the Blood Diamonds campaign and the internationally recognized Kimberley Accords of 2002 that were signed by both the diamond industry, and international governments to combat the trade of diamonds in conflict zones.⁷³