Ethics Special Report 2025

SPECIAL REPORT

ETHICS

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Business integrity and transparency
in the global jewellery industry

By Sara Yood
President
CIBJO Ethics Commission

SEPTEMBER 25, 2025

The jewellery industry is built on trust. Consumers purchase jewellery not only for its material beauty and intrinsic value, but also for the emotional significance it carries. For that trust to endure, the industry must continue to demonstrate integrity in every transaction.

This report outlines four critical dimensions of business integrity as relevant to the jewellery and watch industries: anti-money laundering and financial transparency, marketing ethics and greenwashing risks, consumer disclosure and product integrity, and technology and transparency tools. Drawing upon international frameworks such as the Financial Action Task Force (FATF), the OECD Due Diligence Guidance, the UN Guiding Principles on Business and Human Rights, the CIBJO Blue Books and guides, and ISO standards, it outlines some of the ethical challenges facing the industry and offers pathways toward greater accountability.

Jewellery occupies a unique position in the global economy – it is both a luxury product and a cultural artifact, symbolising celebration, heritage and personal milestones. Yet the beauty and permanence of jewellery also contain a set of risks that are financial, ethical and reputational in nature.

The CIBJO Ethics Commission exists to provide guidance on matters that affect the credibility of the trade. Today, no issue is more urgent than ensuring integrity and transparency across the supply chain. As consumer expectations evolve and regulatory frameworks tighten, the industry must reaffirm its commitment to honest practices that protect both businesses and consumers.

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Anti-money laundering and financial transparency

The jewellery trade’s association with high-value, portable commodities has long made it a target for criminal exploitation. The Financial Action Task Force (FATF) has repeatedly highlighted the vulnerability of gold and precious stones to money laundering and terrorist financing.

In response, national governments have introduced laws requiring precious metal and gemstone dealers to implement Know Your Counterparty (KYC) protocols, report suspicious activity and maintain robust records.

For small and medium-sized enterprises (SMEs), however, compliance remains a challenge. Many lack the legal expertise or dedicated compliance staff of larger corporations, and the increasing number of digital solutions for denied party screening remain unaffordable and out of reach. However, failure to comply carries serious consequences – not only financial penalties but also reputational damage that can ripple across the industry.

From an ethical perspective, transparency in financial dealings is about more than legal obligation. It is about ensuring that jewellery remains a symbol of artistry and celebration, and not an instrument of crime.

Initiatives that provide scalable compliance tools, accessible training and simplified reporting can help level the playing field, ensuring that integrity is achievable at all levels of the industry.

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Marketing ethics and greenwashing risks

The jewellery market is increasingly shaped by consumer demand for responsible practices. Terms such as “conflict-free,” “ethical,” and “sustainable” now dominate advertising campaigns. Yet without substantiation, these claims risk becoming mere slogans.

Last year’s Ethics Commission report highlighted our concern regarding the misuse of green terminology. Greenwashing is a profound threat to consumer trust. When companies make unverified or misleading claims, they not only misinform buyers but also diminish the value of genuine efforts by competitors who have invested in responsible sourcing.

Every guidance document that addresses terminology across the industry stresses the importance of accurate and verifiable communication. Clear, evidence-based marketing is therefore a moral imperative.

Independent certification, third-party audits, and harmonised definitions are tools that can help eliminate ambiguity. The CIBJO Blue Books also provide essential guidance by establishing precise nomenclature.

By promoting accuracy in advertising and discouraging vague or misleading terminology, the industry can combat greenwashing and ensure that marketing language strengthens, rather than erodes, consumer confidence.

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Consumer disclosure and product integrity

At the point of sale, transparency becomes personal. Consumers now expect clear information about what they are buying – whether a diamond is natural or laboratory-grown, whether a gemstone has been treated, and whether provenance claims can be independently verified.

Misrepresentation at the point of sale can have severe consequences. A single case of consumer deception can generate widespread scepticism, with reputational damage extending well beyond the individual business involved. Responsible businesses must provide accurate, accessible and timely information to consumers.

The CIBJO Blue Books already set out harmonised rules for disclosure. Other CIBJO guides, which do not have the same status as the Blue Books, but nonetheless provide carefully considered recommendations, also are important tools. A new addition will be “The Blue List,” which currently is in the final preparation stages. It is a lexicon of both preferred and discouraged terms for describing responsible sourcing, ethical practices and sustainability in the jewellery industry supply chain, for both business and product claims.

The challenge is consistent application across diverse markets, and complicating this is the international nature of the jewellery and watch industries. While consistent application of terminology is important, different jurisdictions may have requirements that make a product name in one country out of compliance in another. Retailers must communicate in language that is both precise and consumer-friendly, avoiding technical jargon that confuses buyers.

In addition to accuracy, disclosure should embrace storytelling. Consumers increasingly want to know the human and environmental story behind their jewellery – whether it was mined by artisanal communities, repurposed from existing materials, or produced locally. These narratives, when truthful and verifiable, add emotional and ethical value to the product.

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Technology and transparency tools

Digital innovation offers powerful opportunities for strengthening integrity. Blockchain technology, for example, can provide tamper-proof records of provenance, while artificial intelligence (AI) may lead to greater consistency in grading and pricing.

These tools can allow consumers to access detailed histories of their purchases, often through a simple QR code.

However, technology also introduces new risks. Blockchain systems rely on the accuracy of the data input. False or incomplete information at the source compromises the entire chain. AI systems, while efficient, may embed biases or lack transparency in their decision-making processes.

Ethical adoption of technology requires careful evaluation. Industry-wide pilots, critical assessment and clear governance structures are necessary to ensure that innovation strengthens, rather than undermines, trust.

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Guidance and references

The CIBJO Ethics Commission anchors its guidance in internationally recognized frameworks, which provide the ethical and regulatory context within which CIBJO members should operate.

Some of those frameworks have been created within CIBJO’s own commission, while others have been formulated by international organisations and are not always specific to the jewellery industry. In this respect, CIBJO is not an outlier, for the documents referenced are standardly referred to by most other leading industry associations and compliance bodies, including the Responsible Jewellery Council in its Code of Practices, the World Diamond Council’s System of Warranties, De Beers’ Best Practice Principles (BPP), and others.

The most prominent frameworks include:

Financial Action Task Force (FATF), Money Laundering and Terrorist Financing through Trade in Diamonds (2013).
OECD, Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas (3rd Edition, 2016).
United Nations, Guiding Principles on Business and Human Rights (2011).
CIBJO, Blue Books, which are updated on an ongoing basis, providing harmonised terminology and disclosure requirements across gemstones, diamonds, and precious metals.
International Organisation for Standardisation (ISO), including ISO 18323 (2015) – Consumer Confidence in the Diamond Industry, which defines terminology for natural diamonds, synthetic diamonds, and simulants to build consumer trust; ISO 24016 (2020) – Grading Polished Diamonds, which is a grading standard for natural, unmounted, polished diamonds over 0.25 carats; and ISO 6893 – Inspection of Batches of Small Diamonds, for evaluating polished up to 0.25 carats.

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Safeguarding the future

Integrity and transparency are not abstract ideals – they are necessities for the jewellery industry to continue to succeed. Without them, consumer trust erodes, regulators impose harsher restrictions, and the industry’s symbolic value is diminished. With them, jewellery retains its position as a universal emblem of beauty, celebration and permanence.

By promoting integrity in financial practices, honesty in marketing, accuracy in disclosure, and responsibility in technological adoption, the industry can safeguard its future.