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So do you really believe sustainability is an investment?
Yes! The fallout from the near financial meltdown of 2008 was, and continues to be, a shrill reminder to how unethical companies vanished overnight due to mysterious balance sheets and company viability, causing immediate unemployment for thousands and a loss of billions of dollars. Unethical behavior creates serious consequences. It's about creating trust. It takes a long time to build the brand of a company and create confidence with all stakeholders, but that trust can quickly disappear too.
What I do see is that many times the process toward sustainability starts with risk management and focuses initially on just getting through the audits. But eventually, people do see that these processes contribute to more efficiency and quality management systems throughout their organization. Of course, there are also stricter legal requirements evolving. I do believe in voluntary commitment from the top that drive change.
There are key questions that have to be answered: How do you look after your product in a responsible way? How do you treat your employees? How do you manage your working conditions, especially in countries where there is a weak legal framework? What is your impact on the local community where you operate? What about environmental impact? How can you innovate within your factories and create added value?
At Rosy Blue, we have noticed that there is a business case to develop in this process. We should not forget that we are a labor- and capital-intensive industry. Polishers, after all, are the true artists of the diamonds. Healthy and motivating workplaces contribute to employee retention. Of course challenges remain with wages in Thailand and China evolving very fast. We will have to find the right balance within the supply chain to create shared value. But to recapitulate why we should invest in sustainability: product integrity, reputation, access to capital, risk management, employee retention, innovation of processes and services.
Is the diamond industry behind other industries in this movement?
Traditionally, the more environmentally sensitive industries like chemicals, oil and gas and energy, were the ones that started initiatives in relation to CSR. Shell is one example but another good example one is Umicore. It shows that hard work and continuous innovation in sustainability pays off. Also in the consumer products market, you see excellent models such as Unilever, IKEA, L'Oreal, Puma, Nike. Again, it's all about evolution.
Today, you see that Nike leads in sustainable product innovation, leads in supplier transparency... Over a decade ago, they were hit hard in the media. Every company can have its challenging moment. Look at what's happening to Apple, and we all use Apple products. It is so easy to criticize
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