De Beers Tracr Explained: Supply Chain Transparency,Child Labour Prevention, and Responsible Diamond Sourcing

February 21, 2019

Introduction

De Beers Group is one of the most recognized companies in the global diamond industry. As expectations for responsible sourcing increase, companies must demonstrate transparency, ethical labour practices, and sustainable community engagement. One of the major concerns associated with natural resource industries is child labour, particularly in regions where mining intersects withpoverty and limited regulatory oversight.

To address these concerns, De Beers has introduced several initiatives focused on responsible sourcing and ethical supply chains. These include the development of Tracr, supply chain transparency strategies, a zero tolerance policy toward child labour,and community and economic development programs in mining regions such as SouthAfrica.

These efforts reflect a broader shift within the diamond industry toward responsible sourcing, traceability, and stronger governance across global supply networks.

What Is Tracr?

Tracr is a digital diamond traceability platform developed by De Beers. The system uses blockchain technology to create secure digital records that track a diamond’s journey from the mine to the final point of sale.

Each diamond registered on the platform is assigned a digital identity that includes information such as:

  • Mining origin
  • Physical characteristics
  • Cutting and polishing stages
  • Certification details
  • Supply chain transactions

The purpose of Tracr is to strengthen trust, verification, and transparency in the diamond supply chain. By creating an immutable record of each diamond’s journey, the platform helps reduce the risk of fraud, misrepresentation, and unethical sourcing.

Industry reports indicate that millions of diamonds have already been recorded through the Tracr platform, reflecting the growing importance of digital traceability in the diamond sector.

Supply Chain Transparency Strategy

Supply chain transparency has become a critical issue across the global diamond market. Consumers increasingly expect companies to demonstrate where diamonds originate and how they are sourced.

De Beers has implemented several strategies to improve transparency within its supply chain.

Digital Traceability

Through the Tracr platform, diamond scan be tracked across multiple stages of the supply chain. This helps ensure that information about origin and movement remains verifiable.

Responsible Supplier Standards

Suppliers and business partners are expected to comply with responsible sourcing requirements, including labour protections and ethical business practices.

Monitoring and Risk Management

Supply chain monitoring systems are used to identify potential risks and ensure compliance with established standards.

Alignment With International Frameworks

Company policies are designed to align with global initiatives that promote responsible sourcing and transparency in mineral supply chains.

G7 Traceability Initiatives and the Diamond Sector

Recent discussions among countries within the Group of Seven have highlighted the importance of stronger traceability systems for global supply chains.

Governments are increasingly interested in ensuring that imported goods can be traced back to their origin, particularly for high-value commodities such as diamonds.

Digital platforms such as Tracr are seen as potential tools that can support traceability expectations by providing verifiable supply chain records. As traceability standards evolve, technology-based systems may become increasingly important for companies seeking to demonstrate responsible sourcing.

Child Labour Prevention Policy

Preventing child labour is a key component of responsible mining governance.

De Beers states that it has established policies designed to prevent child labour across its operations and supply chain. These policies aim to ensure that mining and diamond sourcing activities comply with international labour standards.

Key elements of the company’s approach include:

  • Requirements for suppliers to comply with labour regulations
  • Monitoring programs designed to detect potential labour violations
  • Responsible sourcing standards applied across operations
  • Collaboration with international labour frameworks

These measures are intended to reduce the risk of child labour and promote ethical labour practices in mining communities.

Zero Tolerance Policy Toward Child Labour

De Beers maintains a Zero Tolerance Policy regarding child labour. This policy means that the company does not permit any form of child labour within its direct operations or supplier networks.

Core Principles of the Policy

Strict Prohibition of Child Labour

Individuals below the legal working age are not permitted to work in mining or related operational activities.

Supplier Compliance Requirements

All suppliers and contractors are expected to follow labour standards that prohibit child labour and protect worker rights.

Monitoring and Audits

Compliance systems are used to identify potential risks within the supply chain.

Corrective Action Measures

If violations are discovered, corrective actions may include remediation procedures or termination of supplier relationships.

The policy aligns with international labour guidelines promoted by organizations such as the International Labour Organization and the United Nations Children's Fund.

Community and Economic Development in South Africa

In addition to supply chain oversight, De Beers reports investing in programs aimed at strengthening communities in mining regions.

In South Africa, community initiatives are designed to improve social and economic conditions in areas where mining operations occur.

Education Initiatives

Programs designed to improve access to education help reduce social vulnerability and support long-term community development.

Skills and Employment Programs

Work force training initiatives aim to provide employment opportunities and professional development for local populations.

Local Economic Development

Support for small businesses and entrepreneurship contributes to the development of sustainable local economies.

Community Infrastructure

Investment in health, housing, and social infrastructure helps strengthen community resilience in mining regions.

These initiatives aim to address economic conditions that can contribute to social risks, including child labour.

The Role of the Kimberley Process

Another important framework in the diamond industry is the Kimberley Process Certification Scheme.

The Kimberley Process was established to prevent the trade of conflict diamonds that could finance armed conflict.

Participating countries certify that exported rough diamonds comply with international regulations designed to prevent illicit trade.

Although the Kimberley Process primarily focuses on conflict prevention rather than labour conditions, it represents a major international effort to improve transparency and accountability within the diamond sector.

Challenges in the Global Diamond Supply Chain

Despite advances in traceability and responsible sourcing, the diamond industry continues to face several challenges.

These include:

  • Complex international supply chains
  • Informal mining activities in some regions
  • Limited regulatory oversight in remote areas
  • Verification challenges in global trade networks

Addressing these challenges requires continued investment in technology, monitoring systems, and community development initiatives.

Conclusion

The global diamond industry is under going significant transformation as transparency and ethical sourcing become increasingly important.

Through initiatives such as the Tracr traceability platform, responsible sourcing policies, and community development programs, De Beers reports working to strengthen accountability within the diamond supply chain.

Efforts to prevent child labour, combined with emerging international traceability expectations, highlight the growing importance of responsible governance in the diamond sector. As technology and regulatory frameworks continue to evolve, traceability systems and ethical sourcing policies are likely to play a key role in shaping the future of the diamond industry.