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

Singapore, 23 September 2020: On Wednesday, members of the Global Platform for Sustainable Natural Rubber (GPSNR) convened the annual General Assembly, which saw the approval of a members’ sustainability policy framework and the creation of a new membership category for smallholder producers of natural rubber.

The newly approved policy framework will help GPSNR member companies, who account for almost 50% of global natural rubber volume, to establish or update strong supply chain sustainability commitments through their natural rubber purchasing policies, on all aspects of sustainability: economic, environmental, and social. Modeled around the Platform’s 12 Principles of Sustainable Natural Rubber, the new policy framework sets out eight overarching themes that include commitments to legal compliance, community livelihoods, healthy, functioning ecosystems (including no deforestation), and respecting all human rights.

“This is a tremendous milestone for the Platform and for the natural rubber industry. In just under two years, GPSNR members developed and approved concrete policy commitments for companies to integrate into their sustainable natural rubber policies. Today, and despite the challenges we all faced during this global pandemic, GPSNR members send a signal to the world about their commitment to achieving a fair, equitable and environmentally sound future” said GPSNR Director Stefano Savi.

Around 85% of the world’s natural rubber is produced by smallholders. In order to transform a sector that is primarily reliant on smallholder producers, GPSNR is embracing smallholder inclusivity and a concept of shared responsibility through the establishment of a Shared Responsibility Working Group, which will identify how the responsibilities and costs of implementation can be equitably distributed across all stakeholder categories, with the understanding that smallholders should not carry the burden of a higher cost to implement sustainability activities in complying with the policy or implementation guidance to be developed.

“Smallholders are a crucial link in the natural rubber value chain, and they have a key role to play in driving awareness on-the-ground and setting the global agenda for sustainable natural rubber” remarked Director Savi.

This year, GPSNR welcomed 28 smallholder members from seven rubber-producing countries. These smallholders now constitute a newly approved standalone category and play an equal role in decision-making within GPSNR alongside the other four categories: producers, processors, and traders; tire manufacturers and other natural rubber makers/buyers; car manufacturers, other downstream users and financial institutions; and civil society.

GPSNR’s virtual General Assembly drew more than 120 attendees, including members of the Platform, partners and invited guests. In addition to voting on resolutions, GPSNR members also elected representatives to the 2020-2021 Executive Committee, which comprises representatives from each of the membership categories. And for the first time, three newly elected smallholder producers with diverse geographical backgrounds will participate in Executive Committee discussions and decision-making.

The COVID-19 pandemic is impacting the entire natural rubber supply chain. It has triggered car and tire manufacturing companies to operate with a reduced workforce, or temporarily halt production plants altogether. Strict lockdown measures have caused a drastic fall in the sales of consumer tires across Europe. Global demand for natural rubber has dropped, the effects of which will be felt by the 6 million natural rubber smallholders in Asia, Africa and Latin America.

Many smallholders live in poverty, depending on daily wages to feed their families. Their situations will only be exacerbated by the COVID-19 crisis. Already, the Association of Producers and Processing Plants of the State of São Paulo (APABOR) has estimated that for Brazil alone, the subsistence of around 100,000 natural rubber farmers and their direct relatives is at risk.

While COVID-19 exposes the vulnerabilities of smallholders, it also reveals the potential they have to be agents of change and drivers of transformation. The pandemic has reminded us of the connections between human health, resilient landscapes, economic stability and livelihoods; the post COVID-19 world is more likely to devote greater attention to tackling environmental, social and economic impacts of its many supply chains. Smallholders, who produce 85% of the world’s natural rubber supply, are thus key to advancing GPSNR’s vision of a fair, equitable and environmentally sound rubber value chain.

One of GPSNR’s major outcomes for this year has been welcoming our new smallholder members. As of today, a total of 27 smallholder members (with additions from Myanmar) have joined GPSNR. The inclusion of smallholders into the fabric of the Platform provides them the opportunity to drive the agenda for sustainable natural rubber and, in the long-term, realize the social, economic and environmental benefits that sustainability brings. 

We encourage GPSNR members to communicate this outcome through the communication channels of their respective organizations. To this end, we launched a quarterly Members’ Communication Toolkit which outlines the suggested key message and provides ready-to-use content for communicating the message. GPSNR Members may access the Members’ Communication Toolkit for Q2 2020 in the GPSNR Forum.  

More is being done to fully include these smallholders in the Working Groups and Executive Committee. The Smallholders Representation Working Group continues with its efforts in designing a programme for onboarding smallholders prior to the General Assembly. In the meantime, some of our new smallholder members are already actively involved in Working Group discussions. Additionally, having recognized the urgency to address the impacts of COVID-19 on smallholders, the Equity sub-Working Group is developing a position paper on the issue.