This year’s Report to Stakeholders represents a first for the De Beers family of companies. We document comprehensively the diverse array of sustainable development activities that have been an integral part of our philosophy for years. We adopt a systematic approach to sustainability reporting. We raise our standards in line with our belief in “living up to diamonds” and benchmark our performance against multi-stakeholder derived indicators. Our commitment to partner with our stakeholders where we operate lies at the heart of our business philosophy.
	The quality of the relationships we nurture and the contributions that we make to development are major drivers for the continuing success of the family of companies. Success will also depend on our ability to identify with the aims and aspirations of the countries where our diamonds are produced, ensuring that our respective expectations remain aligned in the pursuit of business and development goals. As the geographic footprint of our operations expands from southern Africa, it is imperative that the principles that govern our activities be spelt out clearly for all to embrace. That is: zero tolerance of conflict diamonds, reinforced by rigorous adherence to the Kimberley Process, and wholehearted support for the role of diamonds in development. Everyone in the De Beers family of companies shares the conviction that the product we mine, market and sell, the diamond, imposes an absolute requirement to live up to the values it exemplifies, and to uphold its reputation. It is crucial for the entire industry that consumers of diamond jewellery have complete confidence that diamonds are untainted by conflict. Recent times have seen the abuse of natural resource wealth – including diamonds – for the funding of conflict in some countries in west and central Africa. Although these diamonds accounted for a very small percentage of world diamond production, the international community and the industry have sought to address this problem through the Kimberley Process, which governs all rough diamond transactions. Today this assurance is provided by the Kimberley Process Certification Scheme and the commitment of its members to continuous improvement of the process. Diamonds carry a responsibility, especially in Africa, that we as producers cannot underestimate. They contribute essential revenues to governments in countries with regulated formal mining activities. This helps transform for the better the lives of citizens by advancing local economies, providing access to healthcare, promoting education and driving employment. In this way, diamonds contribute to making poverty history. With the end of civil strife in affected countries, diamond mining should be providing vital revenues to those governments for development. However, much of the diamond mining in countries previously affected by conflict remains “informal”. It involves small-scale diggings in river beds. Neither governments nor local communities benefit sufficiently from diamonds produced in this way. Diggers do not always receive fair prices for their stones nor do governments receive their full share through taxes and royalties. This limits their ability to invest in post-conflict reconstruction. Whilst the family of companies does not operate in these areas or buy diamonds from these sources, we believe the wider diamond industry has a responsibility to help find solutions. Many of these activities can be transformed into sustainable business enterprises capable of generating much needed income. This is the goal of the multi-stakeholder Diamond Development Initiative, which we wholeheartedly support. De Beers is further piloting this idea through the Mwadui Community Diamond Partnership in Tanzania, in cooperation with our government partners and local communities. We are starting in Tanzania because it is the only country in which we have mining operations where there also exists small-scale informal diamond mining. These solutions could be offered to other governments in Africa. For a company as firmly rooted in Africa as De Beers, the prevention and management of HIV/AIDS is vital. Having been at the forefront of proactive HIV/AIDS programmes such as the provision of free antiretroviral treatment, it is deeply encouraging to learn that through systematic measurement we can now calculate that between 12 000 to 16 000 children can count on the support of at least one parent as a result of our efforts. Our comprehensive disease management programmes as well as ongoing advice, treatment, care and support continue to demonstrate our commitment to our employees and their families. There are over 12 million AIDS orphans in Africa today. We are working with local community partners to bring care directly into child-headed households. The case of “Isibindi” shows positive outcomes can be achieved. It is important to me as Chairman that De Beers continues to consider responsibility alongside profits, and to interpret that responsibility within our widest sphere of influence. Nicky Oppenheimer