Month: January 2020

Using the Theory of Change model, the Working Group identified root causes that prevent the natural rubber supply chain from achieving the desired state. Once these root causes were agreed upon, effective strategies could be designed to mitigate them.

Considering that the natural rubber industry and the world around it is not static but changes with time, the Working Group has planned for the Theory of Change to be a living document that GPSNR members will continually update and maintain. This will ensure its relevance and role in realizing the vision of GPSNR.

In addition to the above, the Working Group is drafting the Terms of Reference (ToR) for the Equity sub-Working Group. The sub-Working Group’s focus will be on how we can ensure equity along the supply chain.

‘Policy Toolbox’ Working Group

Working Group members’ comments on the first draft of the top line policy components were consolidated and incorporated into an updated draft. For ease of understanding, it was agreed that the policy components and implementation components would be displayed in separate tables. This would allow members to more easily distinguish the policy commitments they should adopt, and the corresponding actions they should implement.

The Working Group aims to have the top line policy components finalized by the end of January for the Executive Committee’s approval.  

‘Capacity Building’ Working Group

The Working Group has designed the questionnaire on which it will base the interviews of stakeholders conducting capacity building activities in rubber-producing countries. Volunteers from the Working Group as well as the GPSNR Secretariat will contact the previously identified stakeholders and seek their input on past and existing capacity building initiatives, evaluating the success of the activities and exploring the role that GPSNR can play in ensuring that the initiatives fulfill their objectives.

‘Traceability and Transparency’ Working Group

Using the Theory of Change document as an anchor to their discussions, the Working Group was able to analyze how the lack of traceability and transparency in the natural rubber supply chain would constitute a threat to sustainability, and how to tackle the associating challenges. Next, the Working Group will start on the design of pilot studies for tools currently employed to assess supply chain risks and/or achieve supply chain traceability or transparency.

Of the 22 applicants, one is from Brazil, four from Côte d’Ivoire, two from Ghana, five are from Indonesia, four from Thailand and six are from Vietnam.

The 2nd General Assembly on 31 March 2020 will see the proposal of a new membership category, ‘Smallholder Producers’. Should the voting on this resolution pass, smallholders will officially find their voice in global efforts to ensure a socially, economically and environmentally sound natural rubber supply chain.

Thanks to sustained funding from Partnerships for Forests (P4F), we will be able to invite the geographically diverse group of smallholders to Singapore to attend their first General Assembly, with the view to onboard them and to have smallholder producers represented in the Executive Committee via the voting of nominated individuals.

As it is important for the smallholders to understand what is required of them at the General Assembly and as an Executive Committee member, the Working Group will be scheduling several sessions, both remote and on-site, to thoroughly brief the smallholders on GPSNR’s Statutes and Code of Conduct. The smallholders will also have the opportunity to get acquainted with one another in the two days prior to the General Assembly.

In preparation for this, the appointed Country Champions of the Working Group will be assisting the smallholders in travel logistics and other administrative matters. The Working Group is also looking into engaging professional translation services at the General Assembly to emphasize impartiality.

We can draw parallels to the coffee industry, which similarly comprises small plantation owners and more profitable downstream actors. In his recent sustainability report on the coffee industry, economist Jeffrey Sachs’ proposal for a global fund to fill the financial gaps for sustainability investments in coffee producing regions garnered vivid discussion.  

Currently, low and unpredictable rubber prices are a constraint to smallholders who produce the bulk of global rubber output. Transparency is critical in the purchasing process, and this kind of disruption typically comes hand in hand with embracing new strategies. 

Under the purview of the Strategy & Objectives Working Group, capacity building and extension services have been identified as potential measures to mitigate the root causes of the social and environmental impact from the natural rubber supply market. Implementing these at scale for the whole industry will require considerable financial investment.   

With the above considerations in mind, GPSNR is exploring new approaches to funding that would not be borne by a single segment of the industry, but in a manner incorporating the spirit of our shared responsibility. 

Enterprise Singapore organized an industry meeting on 14 January 2020, and invited GPSNR and Singapore Exchange to better understand the available options of an e-trading platform that could contribute to our funds. The meeting also discussed what could be the options, through GPSNR, to increase the uptake of the e-trading platform.

Tapping the vast potential of digitalization could present an exciting avenue of possibilities for GPSNR to better advance our vision of a fair, equitable and environmentally sound rubber value chain.      

The meeting was initiated by representatives from Enterprise Singapore, and panel speakers comprised representatives from GPSNR, Singapore Exchange and HeveaConnect. Participants included GPSNR members as well as other Natural Rubber buyers, producers, processors and traders .