Conflict Diamonds

The source of our diamonds is an issue we take very seriously.

We are appalled by the violence in countries where proceeds from the sale of diamonds and other natural resources (e.g. oil, timber) are used to fund rebel activities or lead to human rights abuses.

All nations with significant involvement in the diamond trade agreed a global certification system to control the export and import of rough diamonds mined from January 1, 2003. This system is aimed at preventing criminals from introducing contraband diamonds mined in combat zones into the legitimate supply chain. Since 2003, the Kimberley Process Certification Scheme ("KPCS"), supported by national and international legislation, has sought to certify the legitimate origin of uncut diamonds.

Kimberley Process members ("Members") account for approximately 99.8% of the global production of rough diamonds.

We welcomed this important development and are actively supporting the system designed to safeguard our products' integrity.

The Kimberley Process ("KP") has done more than just stem the flow of conflict diamonds, it has also helped stabilise fragile countries and supported their development. As the KP has made life harder for criminals, it has brought large volumes of diamonds onto the legal market that would not otherwise have made it there. This has increased the revenues of poor governments, and helped them to address their countries’ development challenges. For instance, some $98 million worth of diamonds were legally exported from Sierra Leone in 2008, compared to almost none at the end of the 1990s (source: Tacy Ltd).

Role of Governments
As of November 2008, 49 Members, representing 75 countries (the European Union and its member states count as an individual participant) had adopted the KPCS. It requires that each shipment of rough diamonds - before stones are cut and polished - be in a tamper-resistant container and accompanied by a government-validated certificate. Each certificate is uniquely numbered and contains data describing the shipment's contents.

Participating countries have pledged to turn back or impound shipments of rough diamonds from any nation that fails to subscribe to KPCS standards. Shipments lacking proper certification will be treated in a similar way.

At later stages of the diamond's journey to market, rough diamonds also carry a certificate describing the shipment's contents and confirming that the stones are coming from a Kimberley Process participant. Any country declining to participate is effectively banned from the international diamond trade. Learn more at http://www.kimberlyprocess.com/.

Role of Industry
To supplement the government program, the International Diamond Manufacturers Association (IDMA) and the World federation of Diamond Bourses (WFDB) - representing virtually all significant processors and traders - have established a regimen of self-regulation. Its principal element is a system of warranties that will accompany invoices covering the sale of polished diamonds and diamond jewelry. The requirement applies to rough diamonds mined after December 31, 2002 and products fabricated from them.

Participants of the KPCS must have internal controls to prevent conflict diamonds from entering the supply chain of legitimate diamonds and must carry out annual audit compliance. Furthermore, participants only trade with counterparts who themselves have met the minimum requirements of the certification scheme.

Role of the retailer
This information outlines the steps Signet and the industry have been taking to address conflict diamonds.

All of the diamonds we buy are warranted to be sourced from KPCS compliant countries. Retailers who support the Kimberley Process must buy diamonds and diamond jewelry from dealers and manufacturers who adhere to the System of Warranties explained above. We follow this policy. All diamonds and diamond jewelry merchandise that we buy, must be accompanied by a warranty from the supplier. This warranty assures us that the supplier vouches that their merchandise complies with the KP and that the supplier, in turn, has required the same warranty from their sources of merchandise.

Our Source of Diamonds
We fully support the Kimberley Process and require all our trade suppliers of diamonds and diamond jewelry to provide us with a warranty that the diamonds comply with the Kimberley process.

The warranty is as follows:
“The Diamonds herein invoiced have been purchased from legitimate sources not involved in funding conflict and are in compliance with United Nations Resolutions. The seller herby guarantees that these diamonds are conflict free, based on personal knowledge and/or written guarantees provided by the supplier of these diamonds.”

KPCS certificates for rough diamonds and warranties for polished diamonds received from suppliers are kept at our central office. Compliance with KPCS regulations, the World Diamond Council, the IDMA, and the WFDB is reviewed annually by our company's internal audit department. The results are reported by the Company’s Audit Committee.

You can be confident that concrete and comprehensive measures are being taken to ensure products we sell do not contain conflict diamonds.

November 2009 Kimberley Process Plenary
A KP review mission to Zimbabwe in July 2009 indicated significant non-compliance with the minimum requirements of the KPCS.

On November 5, 2009 Members decided, amongst great debate against suspension of Zimbabwe, and has instead implemented a 12-month Work Plan, that specifically targets exports of rough diamonds from the country’s Marange diamond fields, the site of reported human rights violations. Under this work plan, diamonds from the Marange region have been suspended until they can be inspected by a Kimberley monitor, who will supervise Zimbabwe’s diamond production.

Signet is hopeful that the Work Plan will achieve the goals set out within the timeframe specified. Signet also fully supports the U.S. State Department, which has called for the full and expeditious implementation of stringent controls for rough diamond shipments from Zimbabwe, and in particular, the Marange diamond fields. Signet remains deeply concerned about reported human rights abuses in the diamond fields of Marange, and will continue to watch the situation closely.