In October 2021, the De Beers Group released its 2021 Diamond Insight Report, highlighting the transformative role of sustainability and ESG (Environmental, Social, and Governance) principles in the post-pandemic diamond market. The report emphasizes the growing importance of sustainable practices for businesses, consumers, and society at large, while spotlighting the rising influence of female consumers in the modern market.
Post-Pandemic Market Resilience
The report points to strong signs of recovery and growth in the diamond industry:
- Thanksgiving weekend 2021: Jewelry sales surged by 78% compared to the previous year.
- Rapaport diamond prices: Weekly updates indicate steady growth in diamond production and sales.
These trends demonstrate the untapped potential in the post-pandemic market. Businesses that align with evolving consumer preferences—particularly sustainability—are better positioned to succeed.
The Power of ESG in the Diamond Industry
The Diamond Insight Report explores the intersection of ESG and the diamond industry, breaking it down into three components:
- Environmental: De Beers is implementing measures to reduce its environmental footprint in diamond mining and processing.
- Social: The company highlights its contributions to community development and corporate social responsibility.
- Governance: This includes fair management policies, employee benefits, and workplace equality.
A 2020 survey cited in the report reveals:
- 86% of consumers across 17 countries are interested in a company's ESG contributions.
- 25% of respondents from 27 countries indicate ESG principles strongly influence their purchasing decisions.
Additionally, five of the nine key factors influencing consumer preferences for natural diamonds in 2021 were linked to ESG, underlining its importance in shaping buyer behavior.
Women’s Rising Influence in the Diamond Market
The report also highlights the increasing significance of female consumers:
- Women dominate household purchasing decisions in 97% of Chinese families, with the female market exceeding 10 trillion yuan in 2020.
- In Q1 2021, women outspent men in China’s jewelry market by 7 percentage points.
De Beers is leveraging this trend by fostering gender equality within its organization:
- Partnering with the UN Women initiative since 2017 and extending the collaboration for another five years.
- Increasing the proportion of women in senior leadership roles from 22% to 40%.
- Aiming for gender parity across its workforce by 2030, as part of its "Building Forever" initiative.
A Commitment to Sustainability and Equality
De Beers' Diamond Insight Report underscores its commitment to sustainability, gender equity, and corporate responsibility. By embedding these values into its operations, the company aims to build a lasting legacy of trust, innovation, and progress in the diamond industry.