TRUCOST: The Socioeconomic and Environmental Impact of Large-Scale Diamond Mining

Trucost, part of S&P Global were commissioned to undertake a world-first comprehensive analysis of the total value contribution of The Diamond Producers Association (DPA) members to better understand all material socioeconomic and environmental impacts and benefits of diamond mining.

The Diamond Producers Association (DPA) is the representative organisation of seven of the world’s largest diamond producers, established to maintain demand for, and confidence in diamonds, by promoting the integrity and reputation of the diamond industry and sharing best practices. The membership of the DPA includes ALROSA, De Beers Group, Dominion Diamond, Lucara Diamond, Murowa Diamonds, Petra Diamonds, and Rio Tinto.

In 2017, the DPA engaged Trucost, part of S&P Global, to undertake a world-first comprehensive analysis of the total value contribution of the DPA members, considering all material socioeconomic and environmental benefits and impacts. The study sought to capture not only the economic benefits of diamond mining, which are well understood, but also the social and environmental benefits and impacts associated with the production process. The Trucost Total Value methodology seeks to quantify and capture the full value of these benefits and impacts to provide an assessment of the value created by the DPA members.

The aims of the Total Value study are to:
  • Understand the material socioeconomic and environmental benefits and impacts of diamond production.
  • Leverage this understanding to identify opportunities to minimise the impacts of the industry whilst maximizing the positive value created.
  • Together the DPA members employee modern large scale mining techniques to produce 75% of the world’s annual diamond production. This reports measures the benefits and impacts of the DPA member mining operations
Key findings:
  • The DPA members provide $16,022 billion in total net benefit contribution
  • $4 billion is contributed to salaries and benefits
  • The DPA members pay 4.8 times the living wage paid to the average worker
  • The Greenhouse gas footprint per one carat of polished diamond is 160kg CO2e per carat, 69% less than the estimated carbon footprint of lab grown diamond
“This report marks the first time Trucost has seen an industry come together to measure its environmental, social and economic benefits and impacts,” said Libby Bernick, Managing Director – Global Head of Trucost Corporate Business. “This data provides a baseline for future progress on issues, including environmental impact. We are very excited to work with the Diamond Producers Association and its Member companies to release this research on the total value of their benefits and impacts, promoting greater transparency on environmental and social performance to the capital markets.”