Indian diamond manufacturer Dimexon has announced a significant shift at its Coimbatore diamond manufacturing site in southern India, transitioning to solar power.
This change is expected to reduce the facility’s reliance on the national grid by 75%, equating to an annual saving of approximately 1,400 tCO2e, which is the equivalent of taking 333 cars off the road for a year.
Environmental Impact and ESG Commitments
The move to solar power is part of Dimexon’s broader environmental, social, and governance (ESG) commitments, which include a pledge to achieve carbon neutrality by 2030.
The Coimbatore site, responsible for 85% of the company’s total carbon emissions, represents a significant step in Dimexon’s ESG journey. In 2023, the site also transitioned from diesel to electric vehicles to further reduce emissions.
Partnership with Shakthi Power
To facilitate this transition, Dimexon partnered with Shakthi Power, which owns solar parks in India. This partnership allows Dimexon to tap into an alternative renewable power grid without installing solar panels on-site. The dual power source system, comprising solar power backed up by the national grid, ensures uninterrupted production even if solar power supply fluctuates due to weather conditions or demand on the renewable grid.
Implementation and Future Goals
The transition to solar power at the Coimbatore site began 18 months ago and officially took place on 1 May 2024. In the first two months following the switch, Dimexon reduced its reliance on the national grid by an average of 75%, with plans to increase this to 85% in the coming months.
Vinay Kothari, CEO of Dimexon Integrated Business Services, stated, “As part of our overall ESG journey, reducing our carbon emissions is a core focus area. When evaluating Scope 1 and Scope 2 emissions – those for which we are directly responsible – we identified that our Coimbatore site was responsible for 85% of our emissions. Therefore, the switch to solar power will significantly reduce our overall carbon footprint.
“This is a major step forward for Dimexon, and one that we will build on as we take more actions to reduce our impact on the environment on our journey to carbon neutrality by 2030. Our Antwerp office switched to renewable energy in 2023, and we are now in negotiations to find a solution for our Mumbai offices. We will then look to roll this out to our sites in Asia and the Middle East.”
Reporting and Transparency
Dimexon began publicly reporting its ESG progress in 2022. The latest report, released in 2023 and titled Impact Through Provenance, details their ongoing efforts and can be downloaded for further insights into their sustainability journey.
Implications for the Jewellery Industry
Dimexon’s transition to renewable energy sources at its Coimbatore site highlights a growing trend in the jewellery industry towards sustainability and carbon neutrality. As one of the major diamond manufacturers, Dimexon’s efforts set a precedent for other companies in the industry to follow, potentially accelerating the adoption of renewable energy and more sustainable practices across the sector. This shift not only reduces environmental impact but also meets the increasing consumer demand for ethically produced jewellery.
