Working towards global goals
The United Nations Sustainable Development Goals (UN SDGs) are a call for action by all countries to promote prosperity while protecting the planet. They recognise that ending poverty must go hand-in-hand with strategies that build economic growth and address a range of social needs, including education, health, social protection, and job opportunities while tackling climate change and environmental protection.
Gem Diamonds has, for several years, aligned the UN SDGs with its sustainability and business practices. The exercise has been valuable in its emphasis on the mutual support between global and local priorities, between business and sustainability outcomes, and between the Company and its shareholders.
Following extensive engagement, we have determined that the next step in this alignment is the institution of a rolling three-year cycle of commitments to specific UN SDGs to ensure a targeted impact. Each SDG will be driven by a relevant department, working in tandem with other departments.
According to this cycle, every three years, six SDGs will be selected for special organisational attention. Six SDGs were chosen as a manageable number that was also broad enough to have a wide-ranging impact. Every three years, the following process will be followed:
Due to the interconnected nature of the SDGs, there might well be overlap in terms of the goals selected in each cycle. This process is not intended to be a tick-box approach. Instead, the goal is to integrate thinking and solutions aimed at enhancing Gem Diamond's positive impact in line with the recommendations of the UN.
This model of three-year cycles does not mean that the remaining goals (which we have explicitly associated with our strategic goals and value drivers in the past, and which we will continue to do so) are not going to receive our continued attention. We feel that emphasis on a limited subset of goals will have the benefit of focusing organisational attention on practical, implementable measures, and the importance and value of the UN SDGs as a whole.
Closer support of the UN SDGs reflects a growing trend amongst companies to align their existing business practices with broader societal goals. A 2017 UN report found that 82 out of 100 blue-chip companies demonstrated commitment to the SDGs in their annual reports. This is partially due to an acknowledgement that beyond the moral responsibility, there is a compelling business case. The world's top risks, as described in the World Economic Forum's (WEF's) Global Risks Perception Survey, are addressed by the UN SDGs. If businesses are to protect their future supply chains and markets, these risks must be addressed.
The interconnectivity of value creation
by three key priorities which we
believe will deliver maximum
value for stakeholders
Extracting maximum
value from our
operation
Preparing
for our future
Working responsible
and maintaining
social licence
the foundation of these
priorities
contextualise and inform these
principles
our People
The 2020 – 2022 cycle will focus on the following UN SDGs:
| UN SDG | The context for selection |
UN SDG 1: No poverty To end poverty in all its forms everywhere by 2030 |
Lesotho itself is a developing country with high rates of poverty. It ranks 159th out of 189 countries on the United Nations' Human Development Index. Over recent years, Lesotho's economy has been negatively affected by political instability and a prolonged period of sluggish growth in South Africa. Between 2002 and 2017, the national poverty rate declined only modestly, from 56.6% to 49.7%. Over the same period, food poverty fell from 34.1 to 24.1% while the poverty gap decreased from 29% to 21.9%1 . |
UN SDG 3: Good health and |
According to the World Bank, the most significant health challenge faced by Lesotho remains the high prevalence of HIV/AIDS and tuberculosis (TB). The HIV prevalence rate in Lesotho is 25% in the adult population (15-49 years), the second-highest in the world. The incidence of TB in Lesotho is the second-highest globally. When factoring in health costs and the inability to work when ill, high HIV/AIDS and TB rates contribute to persistently high inequality and poverty2. |
UN SDG 6: Sustainable management of water and sanitation To ensure access to safe water sources and sanitation for all |
Although Lesotho has historically been one of the world's most water-rich countries, and a traditional provider of water to neighbouring South Africa, Lesotho suffers from a lack of clean drinking water due to inadequate sanitation. Moreover, in recent years, severe droughts have caused pressure on the country's water reserves. Given the increased risk of unusual and extreme weather events and ongoing climate change, special attention must be paid to ensuring a safe, sustainable supply of water for Lesotho and its residents. |
UN SDG 8: Decent work and economic growth To promote inclusive and sustainable economic growth, employment and decent work for all |
Diamond mining is the largest private-sector employer in Lesotho, employing thousands of people – the vast majority of which are national citizens. |
|
UN SDG 10: Reduced inequalities
To reduce inequalities within and among countries |
According to the World Bank, consumption growth between 2002 and 2017 was inclusive for the poorest segments of the population, leading to a reduction in the Gini coefficient of nearly seven points. Although Lesotho is now more equal than its neighbours, with a Gini coefficient of 44.6, it remains one of the most unequal countries in the world. We are also cognisant of the importance of reducing inequalities based on income, sex, age, disability, sexual orientation, race, class, ethnicity, religion and opportunity3. |
UN SDG 12: Responsible consumption and production To ensure sustainable consumption and production patterns |
Diamonds and the textile industry make up almost the entire export economy of Lesotho – a country of about two million citizens. Diamond mining in Lesotho directly contributes to the continued growth and development of a country whose future potential is closely aligned with its beautiful product. As a luxury goods company, we have to be especially cognisant of the way we do business, and mitigating our impact becomes exceedingly important. |
Gem Diamonds is a constituent of the FTSE4 Good Index Series