Month: June 2023

Natural Rubber and the European Union Deforestation Regulation: Perspectives from a young sustainability advocate working on natural rubber

Earlier this year, I joined the Global Platform for Sustainable Natural Rubber (GPSNR) to work with smallholder farmers, civil societies, manufacturers, processors and end users on capacity building for those at the bottom of the natural rubber (NR) supply chain. The primary goal was to equip them with the necessary skills for sustainability reform, with the ultimate goal of cultivating better quality raw materials and fostering greater economic mobility. This journey provided me with valuable insights, enabling me to learn from industry professionals and gain an understanding of sustainability issues from diverse perspectives. In this short article, I would like to share some of my key takeaways from being exposed to GPSNR’s initiatives for a sustainable NR industry and interacting with those from other commodities on similar journeys.

To begin, the adoption of the European Union Deforestation Regulation (EUDR) is widely celebrated as a significant step in combating climate change and demonstrates the EU’s commitment to ensuring a sustainable supply chain. However, my interactions with smallholder members of GPSNR shed light on the concerns raised about the shifting of compliance costs to producers. One smallholder member I work with has often highlighted the challenge of balancing the cost of implementing sustainable practices against revenues. They expressed their desire for tangible benefits, such as receiving premium prices for their products, if they were expected to adopt sustainable farming methods. To truly ensure a sustainable supply chain, it is important for governments and industry players to support and assist the vulnerable groups along the supply chain in overcoming the financial barriers they face. This will help ensure that the burden of compliance costs is not disproportionately placed on their shoulders.


Attending the Partnerships for Forests (P4F) Forum 2023 in London. P4F’s invaluable support has played a pivotal role in empowering GPSNR’s smallholders and fostering sustainable engagement.

Additionally, while initiatives to combat deforestation remain crucial, we must not overlook the importance of addressing social issues and the potential economic consequences of such regulations. At the Amsterdam Declaration Partnerships in May 2023, I had the opportunity to hear a minister from a producing country emphasize the importance of consuming nations recognizing the economic and social consequences. Failing to consider economic and social consequences can have far-reaching effects such as increased poverty levels and inequality. Therefore, a holistic approach that balances all three pillars of sustainability is necessary to safeguard the well-being and livelihoods of those affected while protecting the environment.

Lastly, drawing from my experience during the National Initiatives Strategy meeting, an initiative to enhance social, environmental, and economic welfare on a global scale, it became clear that national initiatives have certain limitations when it comes to supporting multiple commodities simultaneously. Therefore, these initiatives need to prioritize specific commodities in order to ensure practicality and effectiveness. During the meeting, it was collectively acknowledged that national initiatives do not need to take the lead in every solution, but rather offer support to industry and government-led initiatives while fostering effective collaboration to avoid duplication in allocation of resources. This also highlights the significance of industry-led solutions, which can complement the work of national initiatives. Industry players’ proactive measures can help anticipate and mitigate potential risks in the supply chain more effectively, promote sustainable practices, and contribute to the overall goal of combating climate change and complying with EUDR.

As I reflect on my experience with GPSNR, it is evident that sustainability in the NR supply chain has been a longstanding commitment even prior to the introduction of the EUDR. Various initiatives have been taken to promote sustainable practices within the NR industry, including the approval of reporting requirements and the adoption of the GPSNR policy framework. These initiatives aim to encourage GPSNR members to align their practices with GPSNR Policy Framework and thus, establish strong sustainability commitments across the NR supply chain.

This year marks a significant transition for GPSNR as we move from commitment to implementation, focusing on four key fronts. Firstly, our efforts are dedicated to finalizing the GPSNR assurance model, an encompassing framework that establishes sustainability guidelines and standards for the entire supply chain. Additionally, GPSNR is also actively working on implementing the shared responsibility mechanism, wherein the manufacturers collaborate to share the costs of capacity building, fostering an equitable and sustainable NR industry.

Furthermore, GPSNR is expanding its capacity building initiatives in essential areas such as Good Agricultural Practices (GAP), agroforestry, and disease management. These efforts aim to empower local communities in key NR producing regions, particularly in Thailand and Indonesia. GPSNR also implemented a smallholders-inclusive strategy, whereby smallholders members can participate in the decision-making processes, become part of the Executive Committee of GPSNR, and have the voting rights at the General Assembly. This ensures that the voices and perspectives of smallholders are taken into account in the development and execution of sustainable natural rubber initiatives.

Lastly, GPSNR is actively striving to fine-tune decisions that support a smoother implementation of the EUDR, which include shared due diligence systems, joint deforestation analysis tools, and common traceability tools, all funded by manufacturers. These measures will enhance transparency and accountability within the NR supply chain.

Members of the Smallholder Representations and Capacity Building Working Group, which include smallholder members from Thailand and Indonesia,  come together in Singapore, bringing their invaluable perspectives to GPSNR workshops in June 2023.

In conclusion, my journey with GPSNR as a passionate sustainability advocate has underscored the significance of collaboration in forging a sustainable NR industry. As we navigate the path forward, it is crucial to address the challenges ahead while maintaining a delicate equilibrium between environmental, social, and economic considerations. The initiatives undertaken by GPSNR, including capacity building, smallholder inclusion, and strategic decisions to support EUDR implementation, reflect a steadfast commitment to sustainability. Together, we can make a positive impact on the global NR supply chain and create a sustainable future.

GPSNR Working Groups Update: June 2023

Strategy and Objectives Working Group: 

The Traceability pilot field trials for the Risk Subgroup, led by consortiums Agridence and Koltiva, are now in full swing. Agridence provided a midpoint update during the June Hybrid meetings, highlighting their progress thus far.

Looking ahead, the Risk Subgroup is actively strategizing the next steps for ASI’s deliverable on the Risk Assessment Framework. This includes conducting internal piloting and aligning the tool with GPSNR commissioned studies to identify any potential gaps.

In an effort to standardize country levels within the tool, the Risk Subgroup will be issuing a Request for Proposal (RFP) to engage consultants who can contribute their expertise. Furthermore, the Risk Subgroup is in the preliminary stages of discussions with the Basel Institution, exploring a potential collaboration to address corruption risks in the supply chain. 

The Assurance Model Task force will convene to receive updates on the alignment of Key Performance Indicators (KPIs) and the due diligence system, ensuring that progress is being made and objectives are being met. In order to create an Assurance Manual under the Members Progress Model, an RFP will be crafted and sent to consultants. This step aims to gather the necessary input and expertise to develop a comprehensive manual.

 

Smallholders Representation and Capacity Building (SCB) Working Group: 

The Smallholders Policy-Equivalent (SPE) Taskforce has successfully presented the final recommendations to the SCB WG, marking a significant milestone in their work. They are actively working towards obtaining endorsement from the SCB WG for their final recommendations as outlined in the report.

The HCSA-HCVN Field Trials have reached an important stage, with the preliminary final report being submitted for review and assessment. The HCSA-HCVN will soon submit the final report, marking the completion of this endeavor.

In an effort to promote knowledge sharing, the digital Knowledge Sharing Platform (KSP) Taskforce organised a meeting on 24th May 2023 for SCB WG members. The objective was to facilitate a better understanding of the KSP, and the service provider has already begun developing new features for the platform.

The Indonesia National Subgroup has taken the initiative to prepare quarterly progress reports for the GAP Coaching and Disease Fighting projects, providing updates to the SCB WG.

Meanwhile, the Thailand National Subgroup is currently in the process of evaluating proposals received for the Thailand GAP Coaching project. The deadline for proposal submissions is 30th June 2023.

The Agroforestry-Income Diversification Taskforce is working to finalize the schedule of workshops planned for 2023-2024.

Lastly, the SCB WG will continue to oversee all ongoing projects.

 

Policy Toolbox Working Group: 

In order to enhance the reporting process, input has been collected from members through a survey and stakeholder-specific meetings as part of the Year 1 Reporting Review process. The feedback received will play a crucial role in informing revisions to the Reporting Matrix and disclosure requirements for Years 2 and 3, as outlined in the Transparent Reporting Roadmap (TRR). Furthermore, discussions are underway to reach an agreement on the TRR for Year 2 reporting, with the Working Group currently finalizing updates received from the OEMs. To reflect the proposed changes to the reporting matrix, the Reporting Guidance will be updated accordingly, providing clear and comprehensive guidelines for reporting.

The Working Group has carefully selected consultant Petra Westerlaan to propose a quantitative orientation for the reporting matrix. This includes conducting a crosswalk analysis with other established reporting frameworks such as CDP Forest, GRI, and ZSL-SPOTT. The integration of quantification will not only facilitate data aggregation but also simplify the evaluation of annual progress. The consultant’s proposed revisions to the reporting framework will be evaluated and decided upon, and recommendations will be made to improve the reporting process and timelines.

In parallel, the Compliance Panel Terms of Reference (TOR) and operational guidance are being finalized based on the Assurance Model, ensuring a robust framework for ensuring compliance and accountability.

 

Shared Responsibility Working Group: 

During the face-to-face meeting, the Governance and Guiding principles were presented, highlighting their importance in shaping the future direction of GPSNR. Manufacturers are now required to seek internal approval regarding the Governance Framework and subsequently provide a final version for approval to the GPSNR Executive Committee (EC) and General Assembly.

The SR WG is actively engaged in defining an inclusive shared investment framework, encompassing various forms of contribution such as in-kind support, financial contributions, and external funding. The outcomes of discussions at the Manufacturers category level will play a crucial role in shaping this framework.

Collaborating with the Secretariat and other WGs, the SR WG is committed to revamping discussions on data sharing and value transfer, recognizing their significance in achieving our objectives. These discussions will seek to optimize the sharing of data and the value derived from it.

To provide clarity and transparency, the WG aims to define the value and benefits associated with each category within GPSNR, ensuring that all stakeholders are aware of the advantages and opportunities available.

Furthermore, the WG, in collaboration with the Capacity Building WG, is working on developing a protocol to filter and evaluate proposals based on the Equity definition and the stakeholders identified by the EC. This process will ensure fair and comprehensive evaluation of proposals.

Lastly, an open co-chair position is available, and volunteers are welcomed to contribute their expertise and leadership to drive the WG forward. If you are interested in taking on this role, please step forward and join us in this important endeavor.

By establishing effective governance, inclusive investment frameworks, and clear protocols, we are working towards a sustainable and equitable future for the natural rubber industry. Your participation and engagement are vital to our collective success.

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