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Greenwashing in Lab-Grown Diamonds: A Global Warning for the Industry

In recent years, lab-grown diamonds have carved out a significant niche in the jewellery market, appealing to environmentally conscious buyers with claims of being eco-friendly, sustainable, and even carbon neutral. These marketing terms paint a picture of a greener, more ethical alternative to mined stones. But are these claims valid? Increasingly, authorities around the world say no.

Major international regulators are cracking down on misleading environmental claims in advertising, warning that terms like carbon neutral diamonds or eco-friendly diamonds can amount to greenwashing—a practice that misleads consumers into believing a product is more environmentally sound than it actually is.

The Rise of Eco-Marketing in Diamonds

As climate change awareness grows, jewellery brands have jumped at the opportunity to market lab-grown diamonds as a cleaner, more sustainable choice. Compared to traditional mining, the lab-growing process seems to offer environmental benefits: no open-pit mines, fewer displaced communities, and lower direct land degradation.

However, the picture isn’t always that simple. Some producers use fossil fuels such as coal to power their facilities, and others rely on synthetic gases or chemicals with their own environmental impacts. This has prompted increasing scrutiny of how these diamonds are promoted and the validity of their sustainable or carbon neutral labels.

Global Crackdown on Greenwashing

United States: FTC Green Guides

In 2019, the U.S. Federal Trade Commission (FTC) issued a warning to sellers of lab-grown diamonds regarding misleading environmental claims. The FTC Green Guides, which outline how marketers must present environmental claims in advertising, emphasize that broad or unqualified terms like “eco-friendly”, “sustainable”, or “green” are deceptive unless supported by solid evidence.

The FTC has made it clear: companies must be able to substantiate any environmental claims with reliable scientific data. For example, describing a product as carbon neutral implies a full lifecycle analysis, including energy sources, emissions, and carbon offsets—an almost impossible task for most lab-grown diamond producers.

The Green Guides are currently under revision to become even stricter, especially regarding climate-related claims. If implemented, these changes will further limit the ways in which lab-grown diamonds can be advertised in the U.S.

European Union: Green Claims Directive

Across the Atlantic, the European Union is following suit. In 2023, the EU Parliament proposed the EU Green Claims Directive, which aims to ban vague and unsubstantiated greenwashing practices. The legislation, expected to pass this year, will prevent companies from using terms like “environmentally friendly”, “climate neutral”, or “carbon neutral” unless they can provide transparent, verifiable evidence.

Ursula Pachl, Deputy Director General of the European Consumer Organisation (BEUC), summed it up:

“Consumers end up lost in a jungle of green claims with no clue which ones are trustworthy. Thankfully, new rules are putting some order in the green claims chaos. Carbon neutral claims are greenwashing, plain and simple.

Why These Terms Are Problematic

Words like eco-friendly, sustainable, and carbon neutral are not clearly defined under most advertising standards, leaving them open to interpretation—and misuse. What one company sees as sustainable diamonds, another may argue are not, especially if the electricity powering the lab comes from non-renewable sources.

Some lab-grown diamond producers even describe their stones as “climate neutral” without accounting for indirect emissions or energy use, misleading customers into believing their purchase has no environmental impact. In truth, unless the entire production lifecycle is carbon-free and independently verified, these claims cannot be ethically or legally defended.

What This Means for the South African Diamond Market

For local sellers in South Africa, this international shift is a wake-up call. As a country that both produces mined diamonds and sells lab-grown diamonds, South Africa must align its diamond industry regulations with those of its global trading partners—or risk reputational and financial consequences.

If local jewellers continue to use unsubstantiated terms like eco-friendly diamonds or carbon neutral diamonds, they could face backlash from international buyers, consumers, and regulators. Worse, they may damage the credibility of South Africa’s entire diamond sector.

Time for Local Action: Guidelines and Legislation

The SA Jewellery Council has a critical role to play. It should urgently issue official guidelines based on the FTC Green Guides and the EU Green Claims Directive, clarifying what can and cannot be said when marketing lab-grown diamonds in South Africa. This includes:

  • Banning vague, unproven green claims

  • Encouraging transparent lifecycle disclosures

  • Promoting third-party certification for environmental claims

In parallel, the Council should lobby national legislators to adopt new advertising rules that mirror global standards. Without such alignment, South Africa risks falling behind in an increasingly regulated international market.

Conclusion: Ethics and Accuracy Must Guide Our Words

There is nothing inherently wrong with lab-grown diamonds. In fact, when produced responsibly, they can offer a compelling alternative to mined stones. But greenwashing undermines both trust and integrity.

As global pressure mounts against deceptive environmental marketing, the South African jewellery industry must act fast. By promoting ethical transparency and aligning with international standards, local jewellers can protect their credibility and continue to shine on the world stage.

Need guidance on responsible diamond buying? Prins & Prins has been the home of natural diamonds in Cape Town since 1982. Speak to our qualified gemmologists today to make informed, ethical jewellery choices.

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