Platform Updates for August

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Baseline Reporting Requirements Pilot Testing

The Baseline Reporting Requirements, developed by the Policy Toolbox Working Group, is a document that indicates certain qualitative and quantitative sustainability data to be reported to the Secretariat. Back in June, we invited GPSNR members to volunteer to be part of a pilot testing for these Baseline Reporting Requirements. Since then, we have had 12 member companies coming forward to contribute their time and efforts to the exercise. These member companies consist of processors, tire makers and one car maker. As part of the pilot testing, each company was given access to a secure reporting platform where they could input the necessary reporting data.  

The Secretariat has conducted in-depth interviews with ten of the volunteer members so far. Following this, all feedback and data received will be reviewed, with the view to refine the Baseline Reporting Requirements in preparation for the formal launch in the near future.

Strategy and Objectives Working Group

The Working Group has commenced an extension of the study on Human Rights and Labour Rights’ Risk Mapping in the Global Natural Rubber Value Chains conducted by independent consultants James Griffiths & Associates Sàrl. This extension will see the consultant preparing an Annex to the main report that focuses on “equity issues” in the global natural rubber value chain. The objective of this extension is to understand current levels of equity (or inequity) along the natural rubber supply chain and identify where these could pose a threat to ecological, social and economic sustainability.

The report will also touch on how GPSNR’s current definition of “equity” compares to definitions used by others in related sectors or related risk assessments, providing suggested revisions to GPSNR’s definition where appropriate.

The Equity sub-Group published four Requests for Proposals (RFPs) in mid August, for studies on the Living Income Gap in the global natural rubber value chain. These initial studies will focus on collecting information and metrics from four countries: Côte d’Ivoire, Indonesia, Myanmar and Thailand. The deadline for submission of proposals is over. The Secretariat has received several proposals and will be evaluating them before presenting them to the sub-Working Group for consideration.

‘Traceability and Transparency’ Working Group

The two Requests for Proposals (RFPs) that the Working Group has been developing were also published in mid August. The deadline for submission of proposals was last week.

The first RFP is for a study that will assess the methodologies of existing traceability and transparency tools and how they match up against the traceability and transparency requirements of GPSNR members. 

The second RFP is for a study that will compare existing and currently under-development GIS databases and mapping tools along with their mapping approaches through research and interviews.

The Secretariat has received several proposals and is in the process of evaluating them. The Working Group will make the final decision thereafter.

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News

Different Plans for Different Countries: Getting Capacity Building Right

What are the challenges that prevent the production of sustainable natural rubber in rubber-producing countries, and why do they exist?

What initiatives can be taken, and by whom, to effectively overcome these challenges?

How can GPSNR best support the natural rubber sector in becoming more sustainable?

In setting out to find the answers to these questions, the Capacity Building Working Group has established four regional sub-Working Groups to focus on developing country-specific capacity building goals and strategies for the following countries: Indonesia, Thailand, Côte d’Ivoire and Myanmar. 

Since the first week of April, the regional sub-Groups have been holding weekly calls to get their respective projects started. Their first order of business? Identify the main challenges preventing the adoption of sustainable natural rubber practices within their countries of focus. Already, some commonalities have been revealed: the lack of implementation of best agricultural practices and poor diversification of farmers’ income. While challenges may be similar across the countries, proposed initiatives may differ due to a variety of factors such as technology and infrastructure, culture, degree of (or lack of) government support. The role that GPSNR can play in supporting these strategies would also depend on the particular conditions within each country.  

The sub-Groups are currently working on prioritizing the identified challenges to capacity building, and will be linking expected outcomes to the components of the GPSNR Desired State.

Roland Baroan is the first GPSNR smallholder member to take part in a Working Group discussion. A rubber farmer with 37 hectares of land and current President of the Association of Natural Rubber Producers of Côte d’Ivoire (APROCANCI), Roland lends his local expertise and knowledge to the Côte d’Ivoire regional sub-Group. Smallholders from the other countries of focus will also be involved via a consultation process.

While we hope to see more smallholders participating in and contributing to the work of GPSNR, we must also ensure that the right support systems are in place for them to effectively connect and communicate with all members. To this end, the Smallholders Representation Working Group is finetuning a proposed programme to onboard our smallholder members. The Working Group is also discussing a suitable funding mechanism for future smallholder participation in GPSNR.

By laying the groundwork for smallholder inclusivity, we can support the natural rubber value chain in its efforts to become more sustainable, and thus more resilient to global catastrophes.

Members

Seeing Through to a Solution: Traceability and Transparency Tools and Technology Studies (Members Version)

Deforestation, land grabbing, and human and labour rights violations have been associated with the production of natural rubber. In order to transform the global natural rubber supply chain into a fair, equitable and environmentally sound one, it is crucial that we work to reduce such social and environmental risks. This is by no means an easy feat with about 6 million smallholder farmers producing around 85% of the world’s natural rubber; the complexities of the supply chain make it difficult for buyers to ensure that sustainable practices are employed for rubber cultivation and processing. Recognizing the importance of enhancing traceability and transparency in the natural rubber supply chain to support the identification and mitigation of social and environmental risks, GPSNR established the Traceability and Transparency Working Group.

Over the past few months, the Working Group has commissioned two studies around traceability and transparency tools and technology. The reports were submitted by the consultants at the end of October 2020. The findings from each report are summarized below.

Spatial Data & Mapping Tools for Detecting Deforestation and Threats to HCVS Areas in Rubber Production Landscapes

Report developed by Zoological Society of London (ZSL)

This report reviews a variety of spatial mapping tools and approaches which may be employed by GPSNR and its members to address deforestation and degradation risk in rubber supply chains.

The key recommendations from this study are that GPSNR members should pool resources to collectively commission landscape-level HCV and HCS screening for key rubber-producing countries and these should be updated periodically. Spatial data maps from this process should be made publicly available to encourage cross-sectoral collaboration on tackling deforestation.

HCV/S datasets may then be integrated into satellite monitoring platforms and combined with near-real time monitoring of deforestation and forest degradation. This will allow accurate spatial analysis of the impacts of rubber production in key forested landscapes. GPSNR members may select different satellite monitoring tools or service providers, based on their own needs and budget. For upstream actors closer to the source, satellite monitoring may allow for preventative measures to be taken at the early stages of deforestation.

The full Executive Summary can be viewed here.

GPSNR members can read the entire report here.

Review of Transparency & Traceability Tools and Solutions

Report prepared by e-Audit Hong-Kong Ltd

This report presents options on supply chain transparency and/ or product traceability solutions that GPSNR may consider as well as recommendations to select the most suitable transparency/traceability solutions for the GPSNR initiative.

A range of solutions currently implemented in commodity industries similar to the natural rubber industry were reviewed and evaluated, resulting in the identification of several key elements that will need to be considered to select the most suitable and cost-efficient solution.

The report also considers three potential infrastructure options (centralized, hybrid and decentralized) that should be considered as they have profound implications on the range of supply chain transparency and product/batch traceability solution(s) that GPSNR may consider to adopt.

This report concludes that the technology currently available makes it possible for all GPSNR key requirements to be integrated into one single solution. However, such a centralized solution may be costly and cumbersome to implement. At this stage of development of the GPSNR initiative it is recommended that GPSNR starts implementing a more flexible hybrid solution, with a centralized infrastructure/ data hub focused on reporting and monitoring of clearly defined performance KPIs, that can be connected through APIs to existing field level risk assessment, risk mapping and traceability solutions currently implemented by GPSNR members.

The full Executive Summary can be viewed here.

GPSNR members can read the entire report here.

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