How Does De Beers Use the OECD Due Diligence Guidance to Prevent Child Labour?

YKS TYT
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I understand that the OECD recommends a risk-based due diligence approach to identify, prevent, and address human rights risks. How does De Beers implement these recommendations in practice? Does the company use supplier assessments, traceability systems, responsible sourcing standards, audits, or other measures to reduce child labour risks?

I am also interested in knowing how OECD due diligence principles support transparency, ethical sourcing, and continuous monitoring within De Beers’ operations and supply chain. If anyone has information from official reports, industry publications, or other reliable sources, I would appreciate your insights.

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How De Beers Implements OECD Due Diligence to Combat Child Labour

Key Takeaways

  • De Beers aligns its Best Practice Principles (BPP) directly with the OECD Due Diligence Guidance for Responsible Supply Chains of Minerals.
  • The company utilizes a five-step framework to identify and mitigate human rights risks, including child labour.
  • Traceability technology, such as the Tracr blockchain platform, ensures diamonds are sourced from conflict-free and regulated mines.
  • Mandatory third-party audits are conducted across the entire value chain to verify compliance with ethical standards.

De Beers implements the OECD Due Diligence Guidance by integrating a risk-based approach into its proprietary Best Practice Principles (BPP) program. This framework requires all business units and Sightholders to undergo rigorous assessments to identify, prevent, and mitigate human rights risks—specifically child labour—through supply chain transparency, site-level audits, and the use of blockchain-based traceability systems.

Table of Contents

  1. The Five-Step OECD Framework in De Beers’ Operations
  2. Supply Chain Traceability and Technology
  3. Monitoring, Audits, and Corrective Actions
  4. Summary Table: De Beers vs. OECD Standards
  5. Frequently Asked Questions

The Five-Step OECD Framework in De Beers’ Operations

De Beers structures its ethical sourcing around the OECD Five-Step Framework, which transforms high-level policy into operational reality:

  1. Establish Strong Management Systems: De Beers maintains a dedicated Responsible Sourcing team and incorporates OECD requirements into its legal contracts with suppliers.
  2. Identify and Assess Risks: The company utilizes Country Risk Assessments to flag regions with a high prevalence of child labour.
  3. Design and Implement a Strategy to Respond to Identified Risks: If a risk is identified in the artisanal small-scale mining (ASM) sector, De Beers uses initiatives like GemFair to provide a secure, transparent route to market for ethically sourced stones.
  4. Carry Out Independent Third-Party Audits: Independent monitors (such as SGS) conduct unannounced inspections at various points in the supply chain.
  5. Report Annually on Supply Chain Due Diligence: These findings are published in the annual Building Forever sustainability reports.

:light_bulb: Pro Tip: De Beers’ Best Practice Principles (BPP) are often considered more stringent than local laws in many jurisdictions, setting a global private-sector benchmark for the diamond industry.

Supply Chain Traceability and Technology

To prevent “leakage” (the entry of unethical diamonds into the legitimate pipeline), De Beers has pioneered Tracr. This is a blockchain-based platform that creates a digital “fingerprint” for a diamond at the source.

  • Immutable Records: Once a diamond’s data is entered at the mine site, it cannot be altered, ensuring that stones from mines with documented child labour cannot be misrepresented as De Beers products.
  • Pipeline Integrity: By tracking the journey from Botswana, Namibia, South Africa, or Canada to the consumer, De Beers ensures that every touchpoint adheres to the World Diamond Council System of Warranties.

Monitoring, Audits, and Corrective Actions

Transparency is maintained through a “Trust but Verify” model. De Beers applies the Pipeline Integrity standard, which involves:

  • Self-Assessment Workbooks: Suppliers must complete detailed questionnaires regarding their labour practices.
  • On-Site Verification: Auditors physically visit sites to interview workers and check identification records to ensure no underage workers are present.
  • Consequences for Non-Compliance: Failure to meet child labour standards results in immediate “critical breach” status, which can lead to the termination of the business relationship.

Summary Table: De Beers vs. OECD Standards

OECD Requirement De Beers Implementation Method
Risk-Based Due Diligence Best Practice Principles (BPP)
Traceability Tracr Blockchain & GemFair Initiative
Verification Independent Third-Party Audits (SGS)
Public Reporting Building Forever Sustainability Reports

Frequently Asked Questions

1. Does De Beers work with artisanal miners where child labour risk is highest?
Yes, through the GemFair program. Instead of boycotting artisanal sectors, De Beers provides technology and training to ensure these miners meet the OECD standards, thereby formalizing the sector and eliminating child labour.

2. How does De Beers verify the age of workers in remote areas?
Auditors perform document reviews of government-issued IDs and conduct confidential worker interviews to cross-reference ages and ensure compliance with the International Labour Organization (ILO) Minimum Age Convention.

3. What happens if a supplier is found using child labour?
Under the BPP framework, child labour is classified as a Zero-Tolerance breach. The relationship is typically suspended immediately, and the incident must be reported to relevant authorities while a remediation plan for the child is established.

Next Steps

Would you like me to explain how the GemFair initiative specifically monitors artisanal mining sites to ensure they remain child-labour-free?