THE TRUE PRICE OF DIAMONDS
Client
ABN AMRO bank is one of the largest banks in the Netherlands and it has reported on its value creation to society since 2018.
Project description
We calculated the true price of 1 carat of polished diamond in 3 systems: large-scale mining, artisanal mining and laboratory-grown diamonds. We showed how artisanal diamonds have the highest true price gap.
We also assessed ways for the sector to move forward. For example, reducing coal for energy use in diamond synthesis can save USD ~780m/year in environmental impacts. Similarly, reducing underpayment in the polishing industry can prevent USD ~35m/year. Understanding pathways for improvement can contribute to significant change in the years to come.
Benefits to the client
Our research was included in the thought piece ‘Nothing is Forever – part 2’. To quote the final part of the conclusions: “[The industry] needs to open up on transparency and sustainability and embrace the larger role of laboratory-grown diamonds. There might be some truth yet in that diamonds are forever…” The inclusion of the case example of the true price of different types of diamonds provides a clear example of what transparency and sustainability can look like.
* The customer was working with the Impact Institute under its former name, True Price
